Document:

Preferred Supplier Agreement

Table of Contents

 Exhibit 10.20 
 EXECUTION COPY 
 CONFIDENTIAL PORTIONS HAVE
BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS
INDICATED BY AN ASTERISK (*) 
 PREFERRED SUPPLIER AGREEMENT 
 Dated as of June 29, 2009 
 by and among 

 BP ENERGY COMPANY, 
 BP CORPORATION NORTH AMERICA INC. 
 AND 
 IDT ENERGY, INC. 

Table of Contents

 TABLE OF CONTENTS 
  

					
	  	  	 	  	Page
	 ARTICLE 1     Definitions; Rules of Interpretation
	  	1
			
	 1.1
	  	 Definitions
	  	1
	 1.2
	  	 Rules of Interpretation
	  	12
	 1.3
	  	 Relationship Among Transaction Documents
	  	13
		
	 ARTICLE 2     Nature of Relationship; Credit Exposure
	  	14
			
	 2.1
	  	 Nature of Relationship
	  	14
	 2.2
	  	 Credit Requirement
	  	15
		
	 ARTICLE 3     Purchase Contracts
	  	15
			
	 3.1
	  	 Agreements between BP and IDT or between BPCNA and IDT
	  	15
	 3.2
	  	 Transaction Execution Process
	  	17
	 3.3
	  	 Permissible Transactions Not Subject to this Agreement
	  	17
		
	 ARTICLE 4     Conditions Precedent
	  	18
			
	 4.1
	  	 Closing Date
	  	18
	 4.2
	  	 Conditions to Each Direct Transaction or Credit-Enabled Transaction
	  	20
		
	 ARTICLE 5     Interface with Independent System Operators
	  	22
			
	 5.1
	  	 Scheduling Agent
	  	22
	 5.2
	  	 Scheduling Agent Designation
	  	22
	 5.3
	  	 Compliance with ISO Rules and FERC Regulations
	  	22
	 5.4
	  	 Specific Responsibilities by ISO
	  	22
	 5.5
	  	 Financial Responsibilities
	  	22
	 5.6
	  	 Transition Period
	  	23
	 5.7
	  	 Post-Transition Period
	  	24
	 5.8
	  	 Scheduling Discrepancies
	  	24
		
	 ARTICLE 6     Supply Fee
	  	24
		
	 ARTICLE 7     Sale Contracts
	  	25
			
	 7.1
	  	 Sale Contract Terms
	  	25
	 7.2
	  	 Transactions Outside Approved Retail Energy Business
	  	25
	 7.3
	  	 Sale Contract Accounting
	  	26
	 7.4
	  	 Modification to Sale Contracts
	  	26
		
	 ARTICLE 8     Reporting Obligations
	  	26
			
	 8.1
	  	 Obligations of BP
	  	26
	 8.2
	  	 Obligations of IDT
	  	27
	 8.3
	  	 Material Deviations
	  	29
	 8.4
	  	 Audit
	  	29

  

Table of Contents

 CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
  

					
	 ARTICLE 9     Accounts
	  	29
			
	 9.1
	  	 Deposit Account
	  	29
	 9.2
	  	 Collateral Account
	  	31
	 9.3
	  	 Independent Collateral Amount
	  	32
	 9.4
	  	 Deposit Account Control Agreements
	  	32
		
	 ARTICLE 10     Billing and Payment
	  	33
			
	 10.1
	  	 Billing; Invoicing
	  	33
	 10.2
	  	 Payment Extensions
	  	33
	 10.3
	  	 Interest Accrual
	  	34
	 10.4
	  	 Distribution from Collateral Account
	  	35
	 10.5
	  	 ISO Billing Disputes
	  	36
	 10.6
	  	 Disputed Invoices, etc.
	  	36
		
	 ARTICLE 11     Regulatory Change
	  	37
		
	 ARTICLE 12     Planned Term; Early Termination
	  	38
			
	 12.1
	  	 Planned Term
	  	38
	 12.2
	  	 Early Termination
	  	38
		
	 ARTICLE 13     Tax and Bankruptcy
	  	40
			
	 13.1
	  	 Taxes
	  	40
	 13.2
	  	 Return of Documents and Information
	  	40
	 13.3
	  	 Bankruptcy Provisions
	  	40
		
	 ARTICLE 14     [RESERVED]
	  	41
		
	 ARTICLE 15     Wind-Down Period
	  	41
		
	 ARTICLE 16     Representations and Warranties
	  	43
			
	 16.1
	  	 Representation and Warranties of IDT
	  	43
	 16.2
	  	 Representation and Warranties of the BP Parties
	  	48
		
	 ARTICLE 17     Covenants
	  	49
		
	 ARTICLE 18     Events of Default
	  	53
			
	 18.1
	  	 IDT Events of Default
	  	53
	 18.2
	  	 BP Event of Default
	  	55
	 18.3
	  	 MNA Default under Master Netting Agreement
	  	57
		
	 ARTICLE 19     Miscellaneous
	  	57
			
	 19.1
	  	 Amendments, Consents, Etc.
	  	57
	 19.2
	  	 Notices, Etc.
	  	57
	 19.3
	  	 No Waiver; Remedies
	  	58

  

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 CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
  

					
	 19.4
	  	 Indemnification
	  	58
	 19.5
	  	 Governing Law; Submission to Jurisdiction
	  	59
	 19.6
	  	 Execution in Counterparts
	  	60
	 19.7
	  	 WAIVER OF JURY TRIAL
	  	60
	 19.8
	  	 Severability
	  	60
	 19.9
	  	 Captions
	  	60
	 19.10
	  	 Successors and Assigns
	  	60
	 19.11
	  	 Integration
	  	61
	 19.12
	  	 USA PATRIOT Act
	  	61
	 19.13
	  	 Confidentiality
	  	61
	 19.14
	  	 Imaged Agreement
	  	63

  

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 CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
 Exhibits and Schedules 
  

					
	Exhibit 1	  	Supply Fees	  	
	Exhibit 2	  	[reserved]	  	
	Exhibit 3	  	Material Terms of Sale Contract	  	
	Exhibit 4	  	[reserved]	  	
			
	Schedule 3.1	  	Existing Use of Pipelines and Storage Facilities	  	[New Request]
	Schedule 3.3	  	Permitted Other Transactions	  	[Coming]
	Schedule 5.4	  	ISO Interface Responsibilities	  	
	Schedule 16.1(c)	  	Required Filings	  	[Received]
	Schedule 16.1(m)	  	List of Sales Contracts and Purchase Contracts	  	[Received]
	Schedule 16.1(w)	  	Authorized Direct Pay Customers	  	[Received]

  

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 THIS PREFERRED SUPPLIER AGREEMENT together with all exhibits and schedules (the
“Agreement”) is made and entered into as of June 29, 2009 (the “Effective Date”), by and among BP Energy Company, a Delaware corporation (“BP”), BP Corporation North America Inc., an Indiana
corporation, (“BPCNA” and together with BP, the “BP Parties”), and IDT Energy, Inc., a Delaware corporation (“IDT”). Each of BP, BPCNA and IDT may be referred to herein individually as a
“Party” or collectively as the “Parties.” 
 WHEREAS, the BP Parties are engaged in the
business of purchasing and selling at wholesale physical and financial Energy, and physical and financial Natural Gas; and 
 WHEREAS, IDT, directly and through its wholly owned subsidiary North American Energy, Inc., a Delaware corporation, is engaged in the business of marketing retail Energy and Natural Gas to commercial, residential, governmental and
industrial Customers; and 
 WHEREAS, the Parties desire to enter into an arrangement, subject to all terms and
conditions set forth in this Agreement and the Related Agreements, whereby the BP Parties will transact with IDT for the purchase, sale and delivery of physical and financial Energy, physical Natural Gas, and Related Services for IDT to use in
connection with the Approved Retail Energy Business, and IDT will (i) pay specified fees to the BP Parties in consideration for the performance of obligations under this Agreement, (ii) grant the BP Parties a first-priority security
interest in the Collateral (as defined herein) to secure its performance hereunder and under the Related Agreements, as more specifically described in the Security Documents, and (iii) provide BP with the information necessary to provide such
services, all as described more fully herein. 
 NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 ARTICLE 1 
 DEFINITIONS; RULES OF INTERPRETATION 
  

	1.1	Definitions. Capitalized terms used herein shall have the following meanings: 

 “Account Bank” means (a) with respect to the Deposit Account, Wachovia Bank, N.A., or any of its successors, and
(b) with respect to the Collateral Account, JPMorgan Chase Bank, N.A, or any of its successors. 
 “Affiliate” means, with respect to a Party, any entity that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Party. For this purpose,
“control” means the direct or indirect ownership of fifty percent (50%) or more of the outstanding capital stock or other equity interests having ordinary voting power. 
 “Aggregate Customer Receivables” means, for any period, the sum of (a) the accounts receivable of all Authorized Direct
Pay Customers that are invoiced during such period and that arise under any Sale Contract and (b) the aggregate of settled amounts that are payable during such period to IDT under all POR Programs and that arise under any Sale Contract.

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 CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
  

 “Agreement” has the meaning set forth in the introductory paragraph.

 “Ancillary Services” means all services required of a Load-Serving Entity (as defined in any ISO Protocols)
by the ISO or any other governmental or quasi-governmental agency with jurisdiction over Load Serving Entities operating in the markets covered by this Agreement or otherwise allocated by the ISO or any other governmental or quasi-governmental
agency with jurisdiction to a Scheduling Agent with respect to such Scheduling Agent’s scheduled load to effectuate the delivery of Energy, including, without limitation: Capacity support services, energy imbalance services, pool operation
services, scheduling services, system control services, reactive power services, voltage control services, operating reserve services (including spinning, non-spin, black start or other). 
 “Approved Retail Energy Business” means the retail business owned and operated by IDT of providing physical and financial
Energy and physical Natural Gas to Customers in a Designated Region and services ancillary thereto. 
 “Authorized Direct
Pay Customers” means those Non-POR Customers set forth in Schedule 16.1(w). 
 “Bankruptcy”
has the meaning set forth in the Master Netting Agreement. 
 “Bankruptcy Code” has the meaning set forth in
Section 13.3(a). 
 “BP” has the meaning set forth in the introductory paragraph. 
 “BP Event of Default” has the meaning set forth in Section 18.2. 
 “BP Parties” means BP and BPCNA, collectively, and “BP Party” means any of BP or BPCNA, individually.

 “BPCNA” has the meaning set forth in the introductory paragraph. 
 “Business Day” means any day Monday through Friday that is not (a) a Federal Holiday, (b) or a state banking
holiday in the state of New York, or (c) a BP corporate holiday for which BP provides at least ninety days’ prior written notice to IDT. 
 “Calculation Date” has the meaning set forth in the Master Netting Agreement. 
 “Capacity” means a reliability product required to be purchased by Load Serving Entities operating within certain ISO or RTO markets, designated as either Installed Capacity (ICAP),
Unforced Capacity (UCAP), or a similar energy capacity product, in any such case, by the respective ISO or RTO. 
  

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TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
  

 “Carrying Cost” has the meaning set forth in Section 3.1(b).

 “Close-Out” has the meaning set forth in the Master Netting Agreement. 
 “Closing Date” means the date on which all of the conditions precedent set forth in Section 4.1 shall have been
fulfilled or properly waived in accordance with the terms of this Agreement. 
 “Collateral” has the meaning as
set forth in the Pledge and Security Agreement. 
 “Collateral Account” has the meaning set forth in
Section 9.2. 
 “Collateral Requirement” has the meaning set forth in the Master Netting Agreement.

 “Collateral Value” has the meaning set forth in the Master Netting Agreement. 
 “Confirmation” and “Confirmations” have the meanings set forth in Section 3.1. 
 “Costs” has the meaning set forth in the Master Netting Agreement. 
 “Credit-Enabled Transaction” has the meaning set forth in Section 3.1. 
 “Creditworthy Assignee” has the meaning set forth in Section 15.2(a). 
 “Customer” means any retail, commercial, residential, governmental or industrial customer in a Designated Region that
purchases Energy or Natural Gas from IDT. 
 “Defaulting Party” has the meaning set forth in the Master Netting
Agreement. 
 “Delivery Month” has the meaning set forth in Section 10.1. 
 “Delivery Point” has the meaning set forth in the EEI Agreement or the NAESB Agreement, as applicable. 
 “Deposit Account” has the meaning set forth in Section 9.1. 
 “Deposit Account Control Agreement” has the meaning set forth in Section 9.4. 
 “Designated Customer” means (a) any existing Customer of IDT in a Designated Region as of the Effective Date, and
(b) any Person that becomes a Customer of IDT in a Designated Region after the Effective Date and, in any such case, which has entered into a Sale Contract with IDT. 
  

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 “Designated Region” means: (a) with respect to Energy, the
geographic region in which NYISO operates, and (b) with respect to Natural Gas, the geographic region in which Niagara Mohawk, Orange & Rockland, Consolidated Edison Company of New York, National Fuel Gas Company, Rochester
Gas & Electric, Central Hudson Gas & Electric Corporation and KeySpan (now National Grid), as applicable, operate. 
 “Direct Transaction” has the meaning set forth in Section 3.1. 
 “Disputed
Amounts” has the meaning set forth in Section 10.6. 
 “Early Termination” has the meaning set
forth in Section 12.2. 
 “Early Termination Net Payment” has the meaning set forth in Section 12.2.

 “EEI Agreement” means that certain Edison Electric Institute form of Master Power Purchase and Sale
Agreement, including any special provisions or addendums thereto, dated June 29, 2009, by and between IDT and BP. 
 “Effective Date” has the meaning set forth in the introductory paragraph. 
 “Eligible
Collateral” has the meaning set forth in the Master Netting Agreement. 
 “Energy” means electric power
and, where appropriate, shall include Capacity, Ancillary Services or other similar services relating to the production and delivery of electric power. 
 “Environmental Law” means any and all present and future United States Federal, state and local and all present and future foreign laws, rules or regulations, and any orders or decrees,
in each case as now or hereafter in effect, relating to the regulation or protection of human health, safety or the environment or to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals or toxic or hazardous
substances or wastes into the indoor or outdoor environment, including, without limitation, ambient air, soil, surface water, ground water, wetlands, land or subsurface strata, or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of pollutants, contaminants, chemicals or toxic or hazardous substances or wastes. 
 “ERISA” means the Employee Retirement Income Security Act of 1974. 
 “Event of
Default” has the meaning set forth in Section 18.1. 
 “Financial Products” means any hedge, swap
or heat rate swap that is entered into for the purpose of hedging the price of Energy, Capacity or Related Electric Power Services that IDT purchases solely in connection with the Approved Retail Energy Business. BP will not provide similar products
related to Natural Gas or Related Natural Gas Services, and such products will not constitute Financial Products under this Agreement. 
  

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 “Financial Responsibility Period” has the meaning set forth in
Section 5.5. 
 “FTP” means a file transfer protocol used to connect two computers over the internet so
that the user of on computer can transfer files to and perform file commands on the other computer. 
 “Government
Contract” means any prime contract, subcontract, teaming agreement, joint venture, basic ordering agreement, pricing agreement, letter contract, grant, cooperative agreement, or other mutually binding legal agreement between IDT and the
United States Government, or any agency or division thereof. 
 “Governmental Authority” means any federal,
state, municipal, county, regional or local government, administrative, judicial or regulatory entity operating under any applicable laws and includes any department, commission, bureau, board, council, including the ISO, administrative agency or
regulatory body of the United States Government or any state or local body or division thereof which governs and controls or otherwise has authority over the Parties, as well as over any Transaction Document and the applicable Government Contract as
defined herein. 
 “Guarantee” means a guarantee, an endorsement, a contingent agreement to purchase or to
furnish funds for the payment or maintenance of, or otherwise to be or become contingently liable under or with respect to, the Indebtedness, other obligations, maintenance of net worth, working capital or earnings of any Person. 
 “Hazardous Material” means, collectively, (a) any petroleum or petroleum products, flammable materials, explosives,
radioactive materials, asbestos, urea formaldehyde foam insulation, and transformers or other equipment that contain polychlorinated biphenyls (“PCBs”), (b) any chemicals or other materials or substances that are now or hereafter
become defined as or included in the definition of “hazardous substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous wastes”, “restricted hazardous wastes”, “toxic
substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of similar import under any Environmental Law and (c) any other chemical or other material or substance, exposure to which is now or
hereafter prohibited, limited or regulated under any Environmental Law. 
 “IDT” has the meaning set forth in
the introductory paragraph. 
 “IDT Event of Default” has the meaning set forth in Section 18.1.

 “Imaged Agreement” has the meaning set forth in Section 19.14. 
  

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 “Indebtedness” means, for any Person: 
  

	 	(a)	obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of property to another
Person subject to an understanding or agreement, contingent or otherwise, to repurchase such property from such Person); 

  

	 	(b)	obligations of such Person to pay the deferred purchase or acquisition price of property or services, other than trade accounts payable (other than for borrowed money)
arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts payable are payable within 60 days of the date the respective goods are delivered or the respective services are rendered and such trade
accounts payable are not 90 days or more past due; 

  

	 	(c)	the amount of any prepayment received by IDT for Energy, Natural Gas or Related Services in connection with the sale and delivery of Energy, Natural Gas or Related
Services that has not been delivered; 

  

	 	(d)	indebtedness of others secured by a Lien on the property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person;

  

	 	(e)	obligations of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for account of such
Person; 

  

	 	(f)	capital lease obligations of such Person (as determined in accordance with GAAP); 

  

	 	(g)	indebtedness or other obligations of others constituting a Guarantee by such Person; and 

  

	 	(h)	the net liability of such Person under hedge agreements. 

 “Indemnified Party” has the meaning set forth in Section 19.4. 
 “Independent Collateral Amount” has the meaning set forth in Section 9.3. 
 “Information” has the meaning set forth in Section 19.13. 
 “Interest Rate”
means the lesser of (a) * or (b) the maximum lawful rate. 
 “Invoice” has the meaning set forth in
Section 10.1(a). 
  

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 “ISDA Agreement” means that certain International Swaps and Derivatives
Association form contract, including any schedules or annexes thereto, dated June 29, 2009, by and between IDT and BPCNA. 
 “ISO” means an Independent System Operator that coordinates, controls and monitors the operation of the electrical power system, usually within a single State, but sometimes encompassing multiple states. As context requires
herein, the ISO shall refer to NYISO. 
 “ISO Barred Issue” has the meaning set forth in Section 10.5.

 “ISO Protocols” means the ISO Protocols adopted by the ISO (in effect at the time of the performance or
non-performance of an action). 
 “Legal Requirement” means any applicable requirement arising out of any
federal, state, local, municipal, or constitutional, law, ordinance, principle of common law, code, regulation, statute, statutory instrument or subordinate legislation, including ISO rules, protocols, or other ISO requirements. 
 “LIBOR” means the one-month LIBOR rate of interest in effect from time to time for large U.S. money center commercial banks
as published under “Money Rates” by The Wall Street Journal (or any equivalent publication selected by BP, if such information is not available in The Wall Street Journal). 
 “Lien” means any legal claim against an asset, including any (a) any mortgage, deed of trust, hypothecation, lien,
pledge, encumbrance, charge, or security interest in or on such asset, whether arising by contract or by operation of law, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease, or title retention
agreement relating to such asset, (c) in the case of securities, any purchase option, call, or similar right of a third party with respect to such securities, and (d) the filing of any financing statement or similar instrument under the
Uniform Commercial Code or similar applicable Legal Requirement. 
 “Load-Serving Entity” means any
state-licensed retail selling company recognized by the jurisdictional ISO and local electric utility company to conduct business selling retail electricity to retail customers. 
 “Master Netting Agreement” means the Master Netting, Setoff, Security and Collateral Agreement, dated as of June 29,
2009, among IDT, BP, and BPCNA. 
 “Material Adverse Effect” means a material adverse effect on (a) the
consolidated financial condition, assets, properties, or operations of a Party, (b) the ability of any Party to perform its obligations under this Agreement (including, in the case of IDT, the Obligations), any Transaction Document or a
significant number (or value) of Sale Contracts to which it is a party, (c) the authorization, legality, validity or enforceability of

  

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this Agreement or any other Transaction Document, or (d) the validity, enforceability, perfection, or priority of the Liens granted in favor of BP under the Security Documents or this
Agreement or the value of the Collateral subject to such Liens. 
 “MMBtu” means one million British thermal
units. 
 “MNA Default” has the meaning set forth in the Master Netting Agreement. 
 “Monthly Distribution Date” has the meaning set forth in Section 10.4. 
 “Moody’s” means Moody’s Investor Services, Inc., or its successor. 
 “MWh” means a megawatt hour. 
 “NAESB Agreement” means that certain North American Energy Standards Board, Inc.’s Base Contract for Sale and Purchase of Natural Gas, including any special provisions or addendums
thereto, dated June 29, 2009, by and between IDT and BP. 
 “Natural Gas” has the meaning ascribed for
“Gas” under the NAESB Agreement. 
 “NERC” means the North American Electric Reliability Corporation.

 “Net Exposure” has the meaning set forth in the Master Netting Agreement. 
 “Non-defaulting Party” has the meaning set forth in the Master Netting Agreement. 
 “Non-POR Customer” means any Designated Customer whose accounts receivable from IDT’s sale and delivery to such
Designated Customer of Energy or Natural Gas are not subject to payment to IDT under a POR Program. 
 “NYISO”
means New York Independent System Operator. 
 “Obligations” means, with respect to IDT, each and every present
or future payment or performance obligation or liability of IDT under this Agreement, any Security Agreement, and, to the extent such obligation or liability arises out of a Transaction, under any Transaction Document. 
 “Party” and “Parties” have the meanings set forth in the introductory paragraph. 
 “Payment Extension” has the meaning set forth in Section 10.2. 
 “Payment Provision” has the meaning set forth in Section 7.1(a). 
 “Performance Assurance” has the meaning set forth in the Master Netting Agreement, including cash and Qualifying Letters of
Credit. 
  

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 “Permitted Extension Period” has the meaning set forth in
Section 10.2. 
 “Permitted Other Transactions” has the meaning set forth in Section 3.3. 

“Person” means any individual, corporation, limited liability company, partnership or other legal entity. 
 “Planned Expiration Date” means June 30, 2011 or such later date upon renewal of the Planned Term in accordance with
Section 12.1. 
 “Planned Term” has the meaning set forth in Section 12.1. 
 “Pledge and Security Agreement” means the Pledge and Security Agreement, dated as of June 29, 2009, by and among the BP
Parties and IDT. 
 “POR Customer” means any Designated Customer whose accounts receivable from IDT’s sale
and delivery to such Designated Customer of Energy or Natural Gas are payable to IDT under a POR Program. 
 “POR
Program” means any purchase of receivables program established in accordance with applicable Legal Requirements of any electric utility or local gas distribution company in a Designated Region. 
 “Price Solicitation” has the meaning set forth in Section 3.2. 
 “Process Agent” has the meaning set forth in Section 19.5(d). 
 “Purchase Contract” means (a) the purchase of Energy or Related Electric Power Services, or Financial Products related
thereto, by (i) IDT pursuant to a Direct Transaction with BP, under the EEI Agreement, or with BPCNA, under the ISDA Agreement, or such other power purchase and sale agreements as may be entered into by and between the Parties from time to
time, or (ii) the BP Parties pursuant to a Credit-Enabled Transaction with a BP-enabled and an approved Third-Party Seller, and (b) for the purchase of Natural Gas or Related Natural Gas Services by (i) IDT pursuant to a Direct
Transaction with BP, under the NAESB Agreement or such other Natural Gas purchase and sale agreements as may be entered into by and between any of the Parties from time to time, or (ii) by the BP Parties pursuant to a Credit-Enabled Transaction
with a BP-enabled and approved Third-Party Seller. 
 “Qualifying Letter of Credit” means a letter of credit in
the form of letter of credit set forth in the Master Netting Agreement and issued by a financial institution whose (a) short-term senior unsecured debt rating is “Prime-1” and its long-term, unsecured and unsubordinated debt
obligations are rated “Aa2” or above by Moody’s, and (b) short-term senior unsecured debt rating is “A-1” or above and its long-term senior unsecured debt rating is “AA” or above. 
  

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 “Related Agreements” means, collectively, the following agreements
entered into by the Parties hereunder: the EEI Agreement; the ISDA Agreement; the NAESB Agreement; the Master Netting Agreement; all Confirmations; and any other agreement between the Parties (other than this Agreement, and the Security Documents).

 “Related Electric Power Services” means the products and services that BP agrees to provide pursuant to a
Transaction to deliver electrical power to the Delivery Point(s) in the Designated Region, including all ISO services, Ancillary Services and Capacity. 
 “Related Natural Gas Services” means the products and services that BP agrees to provide pursuant to a Transaction to deliver Natural Gas to IDT at the Delivery Point(s). 
 “Related Services” means Related Electric Power Services or Related Natural Gas Services. 
 “Renewable Energy Credits” means a certificate, credit, allowance, green tag, or other transferable indicia, howsoever
entitled, created by an RPS, renewable energy program, scheme or organization, adopted by a Governmental Authority or otherwise indicating generation of a particular quantity of energy, or Renewable Energy Credits associated with the generation of a
specified quantity of energy from a “Renewable Energy Source” or “Renewable Energy Facility” as defined in the applicable RPS, renewable energy program or scheme. A Renewable Energy Credit may include some or all additional
environmental attributes associated with the generation of electricity, and those environmental attributes may, but need not be, verified or certified by the same or different verification authorities or certification authorities, and disaggregated
and retained or sold separately, all as the Parties may agree in a transaction confirmation. A Renewable Energy Credit is separate from the Energy produced and may be separately transferred or conveyed. 
 “RPS” means a renewable portfolio standard. 
 “RTO” means a regional transmission organization. 
 “S&P” means Standard & Poor’s Corporation, a division of The McGraw-Hill Companies, Inc. or its successor. 
 “Sale Contract” means an agreement, entered into by IDT solely in connection with the Approved Retail Energy Service, for the sale and distribution of Energy or Natural Gas by IDT to a
Designated Customer. 
  

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 “Scheduling Agent” means any Person who acts on behalf of any other
Person as agent for the purpose of scheduling the delivery of Energy or Related Electric Power Services in the ISO or RTO. 
 “Scheduling Agent Services” has the meaning set forth in Section 5.1. 
 “Security
Documents” means the Pledge and Security Agreement, each Deposit Account Control Agreement, and all UCC financing statements and continuation statements and each other instrument or document delivered by IDT, in each case, to grant to the
BP Parties a Lien on any Collateral or to perfect, assure, or preserve any such Lien or any rights or remedies created thereby. 
 “Solvent” means, with respect to any Person, that as of the date of determination both (a)(i) the then-fair saleable value of the property of such Person is (A) greater than the total amount of liabilities
(including contingent liabilities but excluding amounts payable under intercompany loans or promissory notes) of such Person and (B) not less than the amount that will be required to pay the probable liabilities on such Person’s
then-existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such Person, (ii) such Person’s capital is not unreasonably small in relation to its business
or any contemplated or undertaken transaction; and (iii) such Person does not intend to incur, or reasonably believe that it will incur, debts beyond its ability to pay such debts as they become due, and (b) such Person is
“Solvent” within the meaning given that term and similar terms under applicable Legal Requirements relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall
be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
 “Storage Delivery Price” has the meaning set forth in Section 3.1(b). 
 “Storage Delivery Transaction” has the meaning set forth in Section 3.1(b). 
 “Supply Fee” has the meaning set forth in Article 6. 
 “Supply Fee Termination Payment” has the meaning set forth in Section 12.2. 
 “Term” has the meaning set forth in Section 12.1. 
 “Third-Party Seller” means an entity other than BP that is identified by IDT as a third-party seller of Energy, Natural Gas,
Related Services or Financial Products and that agrees to sell Energy, Natural Gas, Related Services or Financial Products to BP or BPCNA for resale to IDT pursuant to a Transaction. 
  

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 “Transaction” means any transaction between IDT and the BP Parties for
the purchase or sale of Energy, Natural Gas, Related Services or Financial Products to the extent that (a) such Energy, Natural Gas, Related Services or Financial Products are used by IDT in connection with Approved Retail Energy Business, and
(b) such transaction is entered into in accordance with the terms and conditions of the EEI Agreement, the NAESB Agreement, or the ISDA Agreement, as applicable. All Transactions shall also be governed by the terms and conditions of this
Agreement. 
 “Transaction Documents” means this Agreement, the Security Documents and the Related Agreements.

 “Transfer” has the meaning set forth in the Master Netting Agreement. 
 “UCC” or “Uniform Commercial Code” means the Uniform Commercial Code as presently in effect from time to
time in the State of New York and any other jurisdiction (including the State of Texas and the State of Delaware), the laws of which control, among other things, the creation, perfection or priority of the Liens under the Security Documents.

 “UMA Final Settlement Amount” has the meaning set forth in the Master Netting Agreement. 
 “Unrelated Contract” has the meaning set forth in Section 15.2(b). 
 “Unusual Load Profile” has the meaning set forth in Section 7.1(d). 
 “Wind-Down Commencement Date” has the meaning set forth in Section 15.1. 
 “Wind-Down End Date” has the meaning set forth in Section 15.1. 
 “Wind-Down Period” has the meaning set forth in Section 15.1. 
 Other capitalized terms used in this Agreement and not defined hereinabove shall have the meanings given them in this Agreement or the Pledge and Security
Agreement. 
  

	1.2	Rules of Interpretation. In this Agreement, unless a clear contrary intention appears: 

  

	 	(a)	the singular number includes the plural number and vice versa; 

  

	 	(b)	reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are not prohibited by this Agreement,
and reference to a Person in a particular capacity excludes such Person in any other capacity or individually; 

  

	 	(c)	reference to either gender includes the other gender; 

  

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	 	(d)	reference to any agreement, document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance
with the terms thereof; 

  

	 	(e)	reference to any Legal Requirement means such Legal Requirement as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to
time, including rules and regulations promulgated thereunder, and reference to any section or other provision of any Legal Requirement means that provision of such Legal Requirement from time to time in effect and constituting the substantive
amendment, modification, codification, replacement or reenactment of such section or other provision, in each case except to the extent that this would increase or alter the liability of the Parties under this Agreement; 

  

	 	(f)	“hereunder,” “hereof,” “hereto,” and words of similar import shall be deemed references to this Agreement as a whole and not to any
particular Article, Section or other provision hereof; 

  

	 	(g)	with respect to the determination of any period of time, “from” means “from and including” and “to” means “to but excluding”;

  

	 	(h)	headings to Articles, Sections, Exhibits and Schedules are for convenience only and do not affect the interpretation of this Agreement; 

  

	 	(i)	with respect to any capitalized term defined in the Master Netting Agreement that contains another capitalized term that is also defined in the Master Netting
Agreement, such other capitalized term shall have the meaning given to such term in the Master Netting Agreement; 

  

	 	(j)	the terms “Dollars” and “$” mean United States Dollars; 

  

	 	(k)	unless otherwise specified, all times are Houston, Texas time; 

  

	 	(l)	unless otherwise specified, references to Sections or Articles shall mean Sections or Articles in this Agreement; and 

  

	 	(m)	unless otherwise specified, use of the word “including” shall mean “including, but not limited to,”. 

  

	1.3	Relationship Among Transaction Documents. In the event of any inconsistency among the Transaction Documents, the terms of the documents shall prevail in the
following order (unless expressly stated otherwise in a Transaction Document): first, any Confirmation; second, the Master Netting Agreement; third, this Agreement; fourth, the Security Documents; and, fifth, the
EEI Agreement, the ISDA Agreement and the NAESB Agreement. 

  

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 ARTICLE 2 
 NATURE OF RELATIONSHIP; CREDIT EXPOSURE 
  

	2.1	Nature of Relationship. The purpose of this Agreement is to establish a relationship between the Parties whereby the BP Parties will sell and deliver to IDT, and
IDT will purchase and receive from the BP Parties, Energy, Natural Gas, Related Services (including without limitation ISO-related services), and Financial Products that IDT uses in connection with the Approved Retail Energy Business, all as
described more fully herein. In exchange, IDT will (i) pay specified fees to the BP Parties in consideration for the performance of obligations under this Agreement, (ii) grant the BP Parties a first-priority security interest in the
Collateral to secure its performance hereunder as more specifically described in the Security Documents, and (iii) provide BP with the information necessary to provide such services, all as described more fully herein. With respect to the
relationship between the Parties: 

  

	 	(a)	It is expressly understood and agreed by the Parties that the relationship between BP or BPCNA and IDT described herein or established hereby is not a joint venture,
partnership, association or trust. This Agreement shall not be deemed or construed to authorize any Party to act as an agent, servant or employee for any other Party for any purpose whatsoever except as explicitly set forth in this Agreement. In
their relations with each other under this Agreement, the Parties shall not be considered fiduciaries. 

  

	 	(b)	IDT agrees that subject to the terms and conditions set forth herein it will be solely responsible for conducting and managing its day to day business activities.

  

	 	(c)	IDT shall be named as the contracting party in all Sale Contracts and IDT shall be solely responsible for the performance of its obligations under such Sale Contracts.

  

	 	(d)	Notwithstanding anything to the contrary contained herein, IDT acknowledges and agrees that the BP Parties are not providing and will not provide (and will not be
deemed under any circumstances to have provided) IDT with any investment, regulatory or compliance advice, including, without limitation, any opinion or advice regarding the efficacy or advisability of any Transaction proposed by IDT hereunder. IDT
shall make its own investment, regulatory and compliance decisions, or seek investment, regulatory and compliance advice from third party experts in each of these areas as IDT deems necessary. 

  

	 	(e)	Unless otherwise agreed by the BP Parties, all Transactions entered into under this Agreement shall be for the sole purpose of enabling IDT to perform the Approved
Retail Energy Business. 

  

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	2.2	Credit Requirement. 

  

	 	(a)	IDT recognizes and agrees that the BP Parties’ credit exposure to IDT with respect to outstanding Transactions entered into under the EEI Agreement, NAESB
Agreement or ISDA Agreement herewith, is governed by this Agreement, the Master Netting Agreement and the Security Documents for managing mark-to-market exposures. 

  

	 	(b)	If, on any Calculation Date, the BP Parties have a Net Exposure to IDT, IDT shall, pursuant to the Master Netting Agreement, Transfer to the BP Parties Performance
Assurance having a Collateral Value on the date of Transfer at least equal to IDT’s Collateral Requirement. Until IDT Transfers to the BP Parties such Performance Assurance, neither BP Party shall be required to enter into any new Direct
Transactions or Credit-Enabled Transactions. The BP Parties shall return to IDT such Performance Assurance to the extent required under the Master Netting Agreement. 

  

	 	(c)	Using its commercially reasonable judgment and in accordance with its credit risk management policies, BP shall determine the value of the Collateral Value for purposes
of the Master Netting Agreement. 

 ARTICLE 3 
 PURCHASE CONTRACTS 
  

	3.1	Agreements between BP and IDT or between BPCNA and IDT. 

  

	 	(a)	General. On or before the Closing Date, the BP Parties and IDT shall execute and deliver the Related Agreements. Subject to the terms hereof and the relevant
Related Agreement, the BP Parties and IDT will enter into Transactions for the purchase and sale of Energy, Natural Gas, Related Services or Financial Products, under the EEI Agreement, NAESB Agreement, or ISDA Agreement pursuant to confirmations or
other agreements (such confirmations or agreements, collectively, the “Confirmations” and each individually a “Confirmation”) as follows: (a) a Transaction between the BP Parties and IDT (a “Direct
Transaction”); or (b) * (a “Credit-Enabled Transaction”) 

  

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	 	(b)	Storage Delivery Transactions for Natural Gas. BP, in accordance with this Section 2.1(b), may sell Natural Gas to IDT for placement by IDT of such Natural
Gas into storage with deferred payment for such Natural Gas (each, a “Storage Delivery Transaction”). BP will not be obligated to enter into any Storage Delivery Transactions, and in no case will BP be selling or otherwise providing
storage for Natural Gas under the terms of this Agreement. 

 * 
  

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	3.2	* 

  

	 	(a)	* 

  

	 	(b)	* 

  

	 	(c)	* 

  

	3.3	Permissible Transactions Not Subject to this Agreement. Except for Permitted Other Transactions, IDT will not enter into transactions under purchase contracts
for Energy, Natural Gas, Related Services or Financial Products with counterparties other than the BP Parties. No fee shall be due from IDT to the BP Parties for any Permitted Other Transaction. 

  

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 A “Permitted Other Transaction” is each transaction (a) identified
on Schedule 3.3 that is not modified, altered or extended after the Closing Date, (b) in which, regardless of the duration of the trade, (i) the counterparty must offer a price that is lower than the price the relevant BP Party offers for
such transaction, (ii) the BP Parties are unable to enter into a Credit-Enabled Transaction with such counterparty, and (iii) the BP Parties will have no additional responsibilities under the Transaction Documents with respect to the
Energy, Natural Gas, Related Services or Financial Products that are the subject of such transaction, and (c) for the virtual and transmission congestion contract markets in NYISO, so long as the BP Parties will have no additional
responsibilities under the Transaction Documents with respect to the Energy, Natural Gas, Related Services or Financial Products that are the subject of such transaction. 
 ARTICLE 4 
 CONDITIONS PRECEDENT 
  

	4.1	Closing Date. The Closing Date shall occur upon the fulfillment, in form and substance satisfactory to BP, or waiver in writing by BP, of the following:

  

	 	(a)	Each of IDT, BP, and BPCNA shall have executed and delivered each of the following agreements to which it is a party: 

  

	 	(i)	this Agreement; 

  

	 	(ii)	the Pledge and Security Agreement; 

  

	 	(iii)	the EEI Agreement; 

  

	 	(iv)	the ISDA Agreement; 

  

	 	(v)	the NAESB Agreement; and 

  

	 	(vi)	the Master Netting Agreement; 

  

	 	(b)	BP shall have received from IDT the following, each of which shall be in form and substance satisfactory to BP: 

  

	 	(i)	a certificate of incumbency; 

  

	 	(ii)	a certificate of good standing; 

  

	 	(iii)	a certified copy of its certificate of incorporation and of its bylaws; and 

  

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	 	(iv)	certified copies of resolutions or other actions or authorizations, duly adopted by its members or other authorized governing body, authorizing its execution, delivery,
and performance of the Transaction Documents to which it is a party; 

  

	 	(c)	BP shall have received written legal opinions, in form and substance satisfactory to BP, dated the Closing Date and addressed to the BP Parties, of Day Pitney LLP,
counsel to IDT. 

  

	 	(d)	The BP Parties shall have received, in form and substance satisfactory to them, (i) evidence that each document (including each UCC financing statement) required
by applicable Legal Requirements, or reasonably requested by BP, to be filed, registered, or recorded in order to create for the benefit of the BP Parties a valid, enforceable, and perfected first-priority Lien on the Collateral (subject to no other
Liens) shall have been properly filed, registered, or recorded in each jurisdiction in which the filing, registration, or recordation thereof shall be so required or requested, (ii) copies of the UCC search reports and Lien, judgment, and
litigation search reports, dated not more than ten (10) Business Days before the Closing Date, made in respect of IDT in each jurisdiction in which IDT is located or in which assets of IDT are located, and (iii) any other consents
reasonably requested by BP that are necessary to create, or acknowledge the creation of, a valid, enforceable, and perfected first-priority Lien on the Collateral for the benefit of the BP Parties; 

  

	 	(e)	BP shall have received a copy, in form and substance satisfactory to BP, of the balance sheet of IDT as at July 31, 2008 and the related statements of income and
cash flows of IDT for the fiscal year then ended, with the unqualified opinion thereon of IDT’s independent public accounting firms that is recognized by the American Institute of Certified Public Accountants, and the unaudited balance sheet of
IDT and statements of income and cash flows of IDT for the period ending April 30, 2009; 

  

	 	(f)	BP shall have received certificates, in form and substance satisfactory to BP, demonstrating that IDT has obtained and is maintaining the insurance polices that it is
required to obtain and maintain under this Agreement and the other Transaction Documents; 

  

	 	(g)	 BP shall have received evidence, in form and substance satisfactory to BP, that (i) IDT has obtained all permits, licenses and other
authorizations required under all Legal Requirements (including Environmental Laws) to execute, deliver and perform its obligations under the Transaction Documents to which it is a party and to carry on its business as now being or as proposed to be
conducted, except to the extent failure to have any such permit, license or authorization has not had, or could not reasonably be expected to have, (either individually or in the

  

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aggregate) a Material Adverse Effect and (ii) each of such permits, licenses and authorizations is in full force and effect and IDT is in compliance with the terms and conditions thereof,
and is also in compliance with all other limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in any applicable Legal Requirement or in any regulation, code, plan, order,
decree, judgment, injunction, notice or demand letter issued, entered, promulgated or approved thereunder, except to the extent failure to comply therewith has not had, or could not reasonably be expected to have, (either individually or in the
aggregate) have a Material Adverse Effect; 

  

	 	(h)	BP shall have received at least five (5) Business Days prior to the Closing Date all documentation and other information that BP requests and is required by any
Governmental Authority under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act; 

  

	 	(i)	each of the representations and warranties made by IDT under any Transaction Document shall be true and correct in all material respects (and in all respects in the
case of a those representations and warranties that are qualified by materiality or the occurrence or non-occurrence of any event that could have or would have a Material Adverse Effect); 

  

	 	(j)	no Event of Default, and no event that after the giving of notice or the passage of time or both would result in an Event of Default, has occurred and is continuing or
would occur upon the execution, delivery, or performance of this Agreement or the other Transaction Documents; 

  

	 	(k)	no Material Adverse Effect in respect of IDT has occurred and is continuing or would occur upon the execution, delivery, or performance of this Agreement or any of the
Transaction Documents; and 

  

	 	(l)	BP shall have received a certificate, in form and substance satisfactory to BP, from an authorized officer of IDT that all of the conditions set forth in this
Section 4.1 have been fulfilled or property waived by BP. 

  

	4.2	Conditions to Each Direct Transaction or Credit-Enabled Transaction. The obligation of BP to enter into any Direct Transaction or Credit-Enabled Transaction, as
applicable, is subject to the fulfillment, in form and substance satisfactory to BP, or waiver in writing by BP, of the following: 

  

	 	(a)	the Closing Date shall have occurred; 

  

	 	(b)	each of the Collateral Account and the Deposit Account shall have been established; 

  

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	 	(c)	IDT shall have (i) paid to BP in cash an amount equal to the Independent Collateral Amount, or (ii) established an irrevocable Qualifying Letter of Credit for
the sole benefit of BP in an amount equal to the Independent Collateral Amount; 

  

	 	(d)	BP shall have received written legal opinions, in form and substance satisfactory to BP, dated the Closing Date and addressed to the BP Parties, of (i) Day Pitney
LLP, counsel to IDT, regarding the enforceability with respect to IDT and the perfection of applicable security interests, each under the Deposit Account Agreements, and (ii) in-house counsel to IDT regarding related corporate authority
matters. The initial draft of each opinion will be provided to BP no later than five (5) Business Days prior to the execution of the last Deposit Account Agreement; 

  

	 	(e)	with respect to Energy and Related Electric Power Services, BP shall have received, in form and substance satisfactory to BP, the designations necessary to act as
IDT’s Scheduling Agent for the ISO in the Designated Region; 

  

	 	(f)	except with respect to Storage Delivery Transactions, immediately following the Direct Transaction or Credit-Enabled Transaction, the Collateral Value is in excess of
the BP Parties’ a Net Exposure to IDT; 

  

	 	(g)	IDT has Transferred to the BP Parties, pursuant to Section 2.2 and the Master Netting Agreement, any Performance Assurance that the BP Parties has requested
thereunder; 

  

	 	(h)	each of the representations and warranties made by IDT under any Transaction Document shall be true and correct in all material respects (and in all respects in the
case of a those representations and warranties that are qualified by materiality or the occurrence or non-occurrence of any event that could have or would have a Material Adverse Effect); 

  

	 	(i)	no Event of Default, and no event that after the giving of notice or the passage of time or both would result in an Event of Default, has occurred and is continuing or
would occur upon the execution, delivery, or performance of such Direct Transaction or Credit-Enabled Transaction, as applicable; 

  

	 	(j)	no Material Adverse Effect in respect of IDT has occurred and is continuing or would occur upon the execution, delivery, or performance of such Direct Transaction or
Credit-Enabled Transaction, as applicable; and 

  

	 	(k)	BP has received proper exemption certificates issued by IDT as are required to exempt any Transaction under the Transaction Documents as exempt from state, city, and
county level sales or use tax as “sales for resale” in the State of New Jersey and the State of New York. 

  

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 ARTICLE 5 
 INTERFACE WITH INDEPENDENT SYSTEM OPERATORS 
  

	5.1	Scheduling Agent. With respect to NYISO, on and after the effective date of the transfer of responsibility for scheduling and managing transmission from IDT to
BP by NYISO and continuing throughout the Planned Term, subject to the provisions hereof, BP shall act as IDT’s designated Scheduling Agent. BP’s responsibilities as Scheduling Agent shall be limited to the scheduling of Energy and Related
Electric Power Services for delivery hereunder (the “Scheduling Agent Services”), as defined in more detail in Section 5.2 below. 

  

	5.2	Scheduling Agent Designation. During the Planned Term, IDT shall authorize BP to act as the exclusive Scheduling Agent for IDT in NYISO (for purposes of this
Article 5, the “ISO”) and to perform all scheduling and settlement with the ISO, with respect to IDT’s Customer load and the Energy and Related Electric Power Services purchased in accordance with this Agreement. IDT shall
at all times grant BP all such authority necessary for BP to comply with the ISO’s Protocols as IDT’s Scheduling Agent during the Planned Term. IDT and BP shall submit to the ISO all such documentation as may be required to designate BP as
IDT’s Scheduling Agent and to authorize BP to perform Scheduling Agent Services on IDT’s behalf. IDT acknowledges that BP shall have the right to file all such reports, subject to IDT’s prior review, as may be required by applicable
Legal Requirements, including, without limitation, all reports as may be required by the ISO or the applicable regulatory agencies with respect to IDT’s Customer load and/or transactions consummated by BP on behalf of IDT in accordance with the
terms and conditions of this Agreement. 

  

	5.3	Compliance with ISO Rules and FERC Regulations. Each of the Parties agrees to abide by all applicable Legal Requirements (including without limitation all ISO
Protocols, ISO operating and other guidelines, and ISO rules and directives) in performance of its obligations hereunder, as well as with all applicable FERC rules and regulations. 

  

	5.4	Specific Responsibilities by ISO. Schedule 5.4 sets out the respective responsibilities of IDT and BP with respect to the ISO. This Schedule shall
not be construed as exhaustive. 

  

	5.5	 Financial Responsibilities. Relying upon IDT’s representations, warranties and covenants that there have been and are no outstanding
claims, liabilities or other issues with the ISO regarding any material financial responsibilities on or before the date on which the conditions precedents in Section 4.2 of this Agreement are satisfied, BP agrees, to the extent permissible by
the ISO taken independently, to accept financial credit responsibility under the terms of BP’s current credit relationship and account with the

  

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ISO arising after and relating solely to the period, in the case of the ISO, at and after the effective date of the transfer to BP of responsibility to act as IDT’s Scheduling Agent with
respect to the ISO (a “Financial Responsibility Period”). 

 For the avoidance of doubt, BP
does not accept ultimate financial responsibility for ISO charges or billings made in the future referencing time periods prior to the applicable Financial Responsibility Period, which pertain to IDT’s business. To the extent that BP is deemed
by the ISO to be credit responsible for periods before the effective date of the applicable Financial Responsibility Period, it is agreed by IDT that IDT shall be solely responsible for such charges and billings and hereby indemnifies and holds BP
harmless from any and all such liability with respect to any such charges and billings should BP be obligated as the financially responsible party to make payment to the ISO. 
 IDT shall require any successor to BP as the responsible party to the ISO to accept credit responsibility for transactions after the
appointment of such person with the ISO as the successor financially responsible party; provided that nothing herein shall require BP to continue to act as the financially responsible party for IDT following an IDT Event of Default. To the
extent that BP is deemed by the ISO to be credit responsible for periods after (x) the successor financially responsible party has been recognized by the ISO, (y) termination of this Agreement or (y) an IDT Event of Default, it is
agreed by IDT that IDT shall be solely responsible for such charges and billings and hereby indemnifies and holds BP harmless from any and all such liability with respect to any such charges and billings should BP be obligated as the financially
responsible party to make payment to the ISO. 
 In the event that the ISO invoices BP for charges attributable to IDT’s
business related to transactions that occurred during the Planned Term, but after the conclusion of Energy deliveries hereunder, as applicable, then BP shall bill and IDT shall pay for such charges even though these accounting adjustments or
resettlements may occur after the expiration or Early Termination of this Agreement without any limitation as to time. The obligations of IDT under this Section 5.5 shall survive expiration or termination of this Agreement. 
  

	5.6	Transition Period. Until such time as the ISO recognizes the commencement of the Financial Responsibility Period applicable to it, IDT acknowledges that
(i) all financial transactions that are Credit-Enabled Transactions, as well as physical transactions, contain terms as between BP and IDT that are equivalent to the terms as between BP and the Third-Party Seller and (ii) BP will schedule
such physical bilateral transactions with respect to Energy, Natural Gas or Related Services, for delivery to IDT at receipt points, and IDT shall be obligated to pay for such physical Energy. IDT is and will be obligated to accept and pay for
delivery (physical or financial) of these products and volumes and any associated ISO charges or fees on the same terms accepted by BP and/or BPCNA. 

  

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	5.7	Post-Transition Period. Upon commencement of any Financial Responsibility Period, all physical transactions that are Credit-Enabled Transactions shall be
scheduled to BP and subsequently scheduled by BP on behalf of IDT under applicable ISO rules and procedures for ultimate delivery by IDT to Customers. Additionally, BP will submit, on behalf of IDT, all schedules required to be submitted to the ISO
necessary to deliver the Energy or Related Electric Services to be sold to IDT pursuant to any outstanding Transaction. IDT is and will be obligated to accept and pay for delivery (physical or financial) of these products and volumes and any
associated ISO charges or fees on the same terms accepted by BP and/or BPCNA. 

  

	5.8	Scheduling Discrepancies. An IDT Event of Default will occur if IDT's actualized delivered power volumes by individual ISO load zone and customer class hourly
load profile shape applicable to ISO settlements in any given one month period exceeds * percent (*%) for any two individual months in a given consecutive twelve (12) month time period. If the actualized delivered power volumes by ISO load
zone and customer class hourly load profile shape applicable to ISO settlements in any given one month period exceeds * percent (*%) then the penalty would be $* payable to BP for each monthly occurrence. If there were extenuating circumstance
that caused the scheduling deviation, and both parties, acting reasonably, mutually agreed that the event was an extenuating circumstance, then the event would not be considered an IDT Event of Default. 

 ARTICLE 6 
 SUPPLY FEE 
 In compensation of BP’s services, duties, responsibilities and obligations hereunder, BP
shall be entitled to receive a fee for each calendar month (or portion thereof) during the Planned Term, payable by IDT to BP each month equal to the applicable amount for each MWh or MMBtu, as applicable, of Energy, Natural Gas or Related Services
(whether such delivery is a physical delivery or a financial transaction constituting a deemed delivery of Energy) purchased and sold in each Credit-Enabled Transaction and Direct Transaction as set forth in the Exhibit 1 (in either
case, the “Supply Fee”). The Supply Fee shall be considered for all purposes under the EEI Agreement and NAESB Agreement, as applicable, to be in lieu of any other similar fee (not a separate and additional fee or cost) in respect
of any Credit-Enabled Transaction or Direct Transaction (unless separately agreed to in a Transaction under the EEI Agreement or NAESB Agreement, as applicable). 
  

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 ARTICLE 7 
 SALE CONTRACTS 
 In order to sell Energy, Natural Gas
or Related Services, IDT may enter into Sale Contracts, subject to the following terms and conditions: 
  

	7.1	Sale Contract Terms. With respect to Sale Contracts entered into during the Term, IDT shall, at a minimum, include the terms and conditions listed hereinafter.

  

	 	(a)	Either (i) all Sale Contracts contain a provision requiring the Customers to make payment for all sums due thereunder directly and exclusively to the Deposit
Account (the “Payment Provision”), or (ii) IDT shall give legally binding written instructions consistent with such Payment Provision to any Customer which is not a party to a Sale Contract already containing such a Payment
Provision. Each new Sale Contract will have provisions substantially similar to the material terms set forth in Exhibit 3 to this Agreement. A breach of this sub-section may constitute an Event of Default under Section 18.1(c).

  

	 	(b)	If Customer makes payment for amounts due to IDT at IDT’s place of business, IDT shall ensure that these payment amounts are deposited into the Deposit Account
within three (3) Business Days from date of receipt of payment, but in any case as soon as possible. IDT shall deposit all such amounts into the Deposit Account, and shall make no other use or disposition thereof. 

  

	 	(c)	No Customer contracted by IDT shall be a * with any utility or ISO sponsored program without the prior written consent of BP; provided that a Customer may be *
if such Customer’s demand (i) is established on a day ahead load shape basis and (ii) does not require real-time metering and associated technological infrastructure to monitor and control such Customer’s demand real time.

  

	 	(d)	No customer contracted by IDT shall knowingly have an Unusual Load Profile without written approval from BP. A customer has an “Unusual Load Profile”
if such customer exceeds 7 MW of demand during any calendar year and has a daily, monthly, or annual load factor of less than *%. 

  

	 	(e)	The aggregate of settled amounts that are payable from fixed price Sale Contracts for any calendar month will not exceed *% of the Aggregate Customer Receivables.

  

	7.2	Transactions Outside Approved Retail Energy Business. IDT shall not sell and deliver Energy, Natural Gas or Related Services to any Person on a retail basis
under the terms of this Agreement if such sale and delivery would not constitute an Approved Retail Energy Business unless (a) a BP Party provides its prior written consent to such sale and delivery and (b) such sale and delivery is made
pursuant to agreements and contracts approved by a BP Party; provided, however, that nothing in this Agreement precludes IDT from selling and delivering Energy, Natural Gas or Related Services on a retail basis to any Person outside
the scope of this Agreement, subject to the option described in the immediately succeeding sentence. The BP Parties shall have the option, but not the obligation, to include such new Sale Contracts under the terms hereof with such deemed charges as
may be necessary to include such Sales Contract. Within the Designated Region, IDT shall not make sales at wholesale of Energy, Natural Gas or Related Services except to the BP Parties. 

  

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	7.3	Sale Contract Accounting. IDT shall be responsible for all volumetric and financial accounting with respect to the Sale Contracts entered into pursuant to this
Agreement. Billing under any Sale Contracts shall be in accordance with such Sale Contracts. IDT shall provide or cause to be provided upon request of BP, in addition to any other disclosure requirements hereunder, all information and data
reasonably required by BP to verify the accounting pertaining to the Sale Contracts activity, including copies of the Customer Sale Contract if requested. 

  

	7.4	Modification to Sale Contracts. IDT will not modify, to the extent extant, any of the material terms set forth in Exhibit 3, remittance address,
account number, payment instructions and contract delivery point under any Sale Contract without the prior written consent of BP. 

 ARTICLE 8 
 REPORTING OBLIGATIONS 
  

	8.1	Obligations of BP. 

  

	 	(a)	Daily Settlement Reports. BP will provide on a daily basis all the settlement data associated with the IDT DUNS number as provided by the ISO in the daily
Settlement Extract in its raw format (CSV, HTTP or xml format). BP will post the daily files in a secure website site that IDT can access remotely. 

  

	 	(b)	Settlement Summary Reports. Two (2) Business Days after the ISO’s settlement period, BP will provide to IDT a settlement summary including day-ahead
and real time volumetric and price data, as well as any other cost component including Capacity, ancillaries, etc. In the case of the other cost components, BP will provide to IDT with sufficient detail, including any allocation formulas, to allow
IDT to verify the nature and the amounts charged or credited to IDT. 

  

	 	(c)	 ISO Reports. On a continuous basis, BP will provide IDT online access to view and download reports regarding activity with the ISO, including
daily settlements reports. IDT’s access will be limited to data regarding transactions in which the BP’s and IDT’s data is not commingled together. With respect to transactions where IDT’s and BP’s data is commingled, BP
will provide to IDT with its apportionment of the related transaction within three (3) Business Days from the availability of the data to BP. In such cases, BP will provide IDT with sufficient detail, including any allocation formulas, to allow
IDT to verify the nature and the amounts charged or credited to IDT. If IDT reasonably requests additional

  

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relevant information, BP shall exercise commercially reasonable efforts to provide such information. BP will not be required to provide on line direct access in instances where the access cannot
be restricted to IDT’s specific data only. 
  

	8.2	Obligations of IDT. 

  

	 	(a)	Scheduling reports. On a weekly basis, IDT will provide to the regional trade desks at BP a week ahead scheduling forecast by ISO, delivery zone and by hour. The
scheduling report will be delivered electronically in a form and mechanism mutually acceptable to the Parties. 

  

	 	(b)	Forecasting reports. On a quarterly basis, IDT will provide to the trade control group at BP a weekly, rolling 3-month and rolling 12-month forecast by ISO
delivery zone. The forecasting report(s) will be delivered electronically in a form and mechanism mutually acceptable to the Parties. 

  

	 	(c)	Systems Reports. On a continuous basis, IDT shall make available to the trade control group at BP via online access at a secure website, reports of its Customer
obligations, projections, incremental business changes, including specific customer contracts if requested by ISO, ISO zone or specific location and by month for Energy, Natural Gas or Related Services, RPS Renewable Energy Certificates and other
similar information as reasonably requested, including, but not limited to, its monthly load forecast report and monthly load forecast variance report (Any exceptions shall not be sustained without written approval from BP).

  

	 	(d)	Environmental Reporting. On a monthly basis, IDT shall provide and reconcile with BP any environmental reporting that BP is required to do in connection with a
Direct Transaction or a Credit-Enabled Transaction. 

  

	 	(e)	NERC Reports; Notice of Non-compliance. IDT shall be responsible for providing, on a timely basis, to NERC all reports and other information that is required to
be provided by a Load Serving Entity under NERC’s Reliability Standards. IDT shall provide prompt notice to BP of any IDT failure to comply with NERC’s Reliability Standards. 

  

	 	(f)	Other Information. IDT promptly shall provide to the trade control, risk management, credit, compliance and legal groups at BP all other information, reports,
and data reasonably requested by BP in order for BP to comply with all ISO and other reporting requirements under applicable laws, rules and regulations relating to the services, including the QSE services, being provided by BP hereunder. IDT agrees
to indemnify and hold BP harmless from all penalties, liabilities, costs and expenses (including reasonable attorney fees) incurred by BP for being non-compliant with any reporting requirements on account of the failure of IDT in timely providing to
BP any of the information and reports set forth in this Agreement. The provisions of this Section 8.2 shall survive termination or expiration of this Agreement. 

  

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	 	(g)	Aged Accounts. Within five (5) Business Days after the end of each month, a report setting forth IDT’s Non-POR Customer aged accounts receivable
(e.g., 1-30 days outstanding, 31-60 days outstanding, 61-90 days outstanding, etc.), including the amount outstanding for each account receivable listed and the number of days each such account receivable is past due.

  

	 	(h)	Cash Flow Projections. Within two (2) Business Days prior to the end of each calendar month, a projection of IDT’s cash flow for the immediately
succeeding 7ninety (90)-day period, such projections to be developed by IDT in good faith and based on IDT’s best judgment as to the performance of the Approved Retail Energy Business during such period. 

  

	 	(i)	Financial Reports. IDT promptly shall provide to the credit department at BP: 

  

	 	(i)	as soon as available and in any event within 50 days after the end of each quarterly fiscal period of each fiscal year of IDT, statements of income of IDT for such
period and for the period from the beginning of the respective fiscal year to the end of such period, and the related balance sheet of IDT as at the end of such period, setting forth in each case in comparative form the corresponding figures for the
corresponding periods in the preceding fiscal year, accompanied by a certificate of a senior financial officer of IDT, which certificate shall state that (A) said financial statements fairly present the financial condition and results of
operations of IDT, in accordance with generally accepted accounting principles, consistently applied, as at the end of, and for, such period (subject to normal year end audit adjustments), and (B) no Event of Default occurred during such period
and is continuing; 

  

	 	(ii)	 as soon as available and in any event within 90 days after the end of each fiscal year of IDT, statements of income and cash flows of IDT for such
fiscal year and the related balance sheet of IDT as at the end of such fiscal year, setting forth in each case in comparative form the corresponding figures for the preceding fiscal year, and accompanied by an unqualified opinion thereon of
independent certified public accountants recognized by the Public Company Accounting Oversight Board, which opinion shall state that said financial statements fairly present the financial condition and results of operations of IDT as at the end of,
and for, such fiscal year in accordance with generally accepted accounting principles, consistently applied accompanied by a certificate of a senior officer of IDT, which certificate shall state that (A) said financial statements fairly present
the financial condition and results of operations of IDT, in accordance with

  

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generally accepted accounting principles, consistently applied, as at the end of, and for, such period (subject to normal year end audit adjustments), and (B) no Event of Default occurred
during such period and is continuing; 

  

	 	(iii)	a notification as soon as IDT knows or has reason to believe that a material adverse claim had been made against any of the Collateral or any substantial and adverse
change in the value of the Collateral has occurred; and 

  

	 	(iv)	from time to time such other information regarding the financial condition, operations, business or prospects of IDT, or regarding any of the transactions contemplated
hereby or by any of the Related Agreements as BP may reasonably request. 

  

	8.3	Material Deviations. A party shall notify the other of any material deviation from any of the provisions in this Article 8 within two (2) Business Days
of its knowledge of such deviation. 

  

	8.4	Audit. BP shall have the right at its expense and upon reasonable advance notice to audit and examine the books and records of the IDT to the extent reasonably
necessary to verify the accuracy of any information pertaining to the Obligations, a Credit-Enabled Transaction or a Direct Transaction, or any statement, invoice, payment, calculation or determination made hereunder or any Related Agreement;
provided that BP may not conduct more than three such audits or examinations within any calendar year. To the extent that BP appoints a professional audit firm to conduct any such audit, such audit firm shall be bound by confidentiality
obligations. The entity being audited shall fully cooperate with any such audit. Such right shall extend for a period of twelve (12) months after the end of the Planned Term of the Agreement, or solely with respect to the case of a Transaction
that extends beyond the end of the Planned Term of this Agreement for a period of twelve (12) months after the end of the term of the extended Transaction. If any such audit shall reveal any error or inaccuracy in the information, statements,
invoices, payments, calculations or determinations made by the entity being audited, then adjustments and corrections shall be made as promptly as practicable thereafter. 

 ARTICLE 9 
 ACCOUNTS 
  

	9.1	Deposit Account. 

  

	 	(a)	 IDT, prior to the initial date on which a Direct Transaction or Credit-Enabled Transaction is effected, shall maintain a single remittance,
non-interest bearing deposit account (the “Deposit Account”), which shall be governed by the Deposit

  

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Account Control Agreement, for the deposit of funds received from Customers, including payments made to BP pursuant to any POR Program. The Deposit Account shall be in the name of IDT, but the BP
Parties shall have a first-priority Lien in the Deposit Account. The Deposit Account Control Agreement entered into with respect to the Deposit Account shall provide that funds that have been deposited into the Deposit Account shall be remitted
automatically on a daily basis to BP for deposit into the Collateral Account. Notwithstanding anything to the contrary contained in any Transaction Document, IDT shall be responsible solely for all fees and service charges relating to the Deposit
Account and IDT shall make any and all payments to the Account Bank to ensure that no charges are made by the Account Bank against the Deposit Account, none of which shall b7e debited against the Deposit Account. 

  

	 	(b)	The Deposit Account and the Deposit Account Control Agreement related thereto shall be maintained and remain in effect with an effective date prior to the first
transaction during the Planned Term and until all Obligations under this Agreement and any other Transaction Documents are satisfied. After the Deposit Account and the Deposit Account Control Agreement are no longer needed, BP shall take all
reasonable actions necessary to terminate them. BP and IDT shall take such actions as may be reasonably necessary to ensure that each Party has access to information in reasonable detail indicating the amounts transferred into the Deposit Account.
If the Account Bank makes an error in the amount transferred from (or to) the Deposit Account, the Parties shall take prompt action, in good faith, to reconcile and correct any such errors. 

  

	 	(c)	Once the Deposit Account has been established, IDT shall not change the details thereof or the designated administrators without the prior written consent of BP (which
consent shall not be unreasonably withheld or delayed). IDT shall cause the Deposit Account to be, and the Deposit Account shall be, separate from all other accounts held by or under the control or dominion of IDT or any other Person (other than BP,
any Affiliate of BP, or any designee or assignee of BP). IDT shall deliver or cause to be delivered to BP as soon as practicable after the end of each calendar month following the Effective Date, copies of the account statements for the Deposit
Account for such month. Such account statements shall indicate deposits, credits and transfers, and closing balances. IDT shall provide any additional information or reports relating to the Deposit Account and the transactions therein reasonably
requested from time to time by BP. Each reference herein to funds held in the Deposit Account shall be deemed to be a reference to the aggregate amount of U.S. Dollars credited to the Deposit Account on the date of determination.

  

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	9.2	Collateral Account. 

  

	 	(a)	BP, prior to the initial date on which a Direct Transaction or Credit-Enabled Transaction is effected, shall establish a non-interest bearing deposit account (the
“Collateral Account”) with the applicable Account Bank, and in respect of which employees of BP are identified as account administrators. The Collateral Account shall be in the name of BP. BP shall cause the Collateral Account to
be, and the Collateral Account shall be, separate from all other accounts held by or under the control or dominion of BP or any other Person. BP shall provide IDT a schedule of fees associated with the Collateral Account, and BP shall promptly
notify IDT in writing of any changes to such fees occurring after the Closing Date. 

 The Deposit Account Control
Agreement entered into with respect to the Collateral Account shall (i) permit an authorized representative of IDT to provide payment instructions to the applicable Account Bank on any Business Day to make payments in the manner specified in
Section 10.4, and (ii) expressly state that no funds may be disbursed from the Collateral Account without the written authorization of an authorized representative of BP. Such Deposit Account Control Agreement shall provide that if IDT
fails to submit payment instructions timely to the Account Bank and such payment instructions are related to undisputed amounts due, then the Account Bank shall make disbursements as directed in writing by the authorized representative of BP.

  

	 	(b)	The financial assets and other property and balances credited to the Collateral Account shall constitute part of the Collateral and shall not constitute payment of any
Obligation until applied thereto as provided in this Agreement and the other Transaction Documents. Notwithstanding anything to the contrary contained in any Transaction Document, IDT shall be responsible solely for all fees and service charges
relating to the Collateral Account and BP may invoice IDT for any such fee or service charge. 

  

	 	(c)	BP shall deliver or cause to be delivered to IDT as soon as practicable after the end of each calendar month following the Effective Date, copies of the account
statements for the Collateral Account for such month. Such account statements shall indicate deposits, credits and transfers, and closing balances. BP shall provide any additional information or reports relating to the Collateral Account and the
transactions therein reasonably requested from time to time by IDT. 

  

	 	(d)	Each reference herein to funds held in the Collateral Account shall be deemed to be a reference to the aggregate amount of U.S. Dollars credited to the Collateral
Account on the date of determination. If the Account Bank makes an error in the amount transferred from (or to) the Collateral Account, the Parties shall take prompt action, in good faith, to reconcile and correct any such errors.

  

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	 	(e)	If, following the delivery of the cash flow projections by IDT to BP pursuant to Section 8.2(h), BP determines that its financial exposure for the following month
based on its supply to IDT of Energy and Natural Gas under this Agreement and the Related Agreements exceeds the projected cashflow into the Collateral Account for the following month, BP shall notify IDT of such deficiency. IDT may elect to not
receive or, if requested by BP, shall not receive any portion of the distribution of funds on deposit in the Collateral Account on the next Monthly Distribution Date pursuant to Section 10.4(v). 

  

	 	(f)	IDT may deliver funds to BP for deposit into the Collateral Account at any time during normal business hours. 

  

	9.3	Independent Collateral Amount. 

  

	 	(a)	IDT, prior to the initial date on which a Direct Transaction or Credit-Enabled Transaction is effected, shall (i) pay to BP in cash an amount equal to the
Independent Collateral Amount (as defined below), or (ii) establish an irrevocable Qualifying Letter of Credit for the sole benefit of BP in an amount equal to the Independent Collateral Amount (as defined below), which shall be maintained
until all Obligations of IDT have been satisfied at the end of this Agreement, including any extension necessary for any Transaction that extends beyond the end of the Planned Term of this Agreement. For the purposes of this Agreement, the
“Independent Collateral Amount” shall be defined as an independent amount of at least *. Such amount shall be in addition to any other amounts received in the Collateral Account. The Independent Collateral Amount may be drawn
by BP to satisfy an Obligation due and owing if a default or an Event of Default occurs under this Agreement or any other Transaction Document. If at any time the Independent Collateral Amount is drawn upon by BP, IDT must deliver to BP within one
(1) Business Day the amount necessary to cause the aggregate amount of (x) cash held by BP and (y) any the Qualifying Letter of Credit, each provided pursuant to this provision, to equal the Independent Collateral Amount. The
Independent Collateral Amount will not be taken into consideration (or used) for calculation of a Payment Extension or in the calculation of Net Exposure under the Master Netting Agreement. 

  

	 	(b)	The financial assets and other property and balances comprising the Independent Collateral Amount shall constitute part of the Collateral and shall not constitute
payment of any Obligation until applied thereto as provided in this Agreement and the other Transaction Documents. 

  

	9.4	 Deposit Account Control Agreements. BP and IDT will execute one or more deposit account control agreements with the Account Bank (or such other
bank which may from time to time maintain the Collateral Account or the Deposit Account for receipt of funds hereunder) governing the deposit of funds into, and the withdrawal of funds from, each of the Collateral Account and the Deposit Account, as
applicable (each, a “Deposit Account

  

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Control Agreement”). If any Deposit Account Control Agreement is modified or amended from time to time, such Deposit Account Control Agreement, as modified or amended, shall for all
purposes be deemed to be a Deposit Account Control Agreement referred to herein. 

 ARTICLE 10

 BILLING AND PAYMENT 
  

	10.1	Billing; Invoicing. Each applicable month during the Planned Term in which BP delivers Energy, Natural Gas or Related Services, or any month in which IDT incurs
an obligation to make a payment to BPCNA with respect to any Financial Product, as contemplated herein, may be referred to herein as a “Delivery Month.” 

  

	 	(a)	For each Delivery Month during the Planned Term, the BP Parties shall deliver to IDT an invoice under the terms of the relevant Related Agreement and this Agreement
with respect to any outstanding Transaction thereunder (each such invoice, an “Invoice”). With respect to any Delivery Month, IDT may receive more than one Invoice from the BP Parties. Subject to clause (b), IDT shall make the
payment due under each such Invoice on the date required under the Related Agreement pursuant to which such Invoice was delivered to IDT, except for any invoice or portion of an invoice that IDT disputes in accordance with Section 10.6 of this
Agreement. 

  

	 	(b)	IDT hereby acknowledges and agrees that, if information necessary for BP to prepare the Invoice (including without limitation information from the ISO, local gas
distribution company, or the applicable transmission and distribution provider) is not available to BP on the date on which the Invoice is required to be delivered to IDT, then BP may reasonably estimate such amounts based on best available
information for purposes of the Invoice and that the actual numbers shall be trued up on the next Invoice following the date on which such information is made available to BP. If BP sends an Invoice based on estimates, BP shall state in writing that
the Invoice is based on estimates. 

  

	10.2	Payment Extensions. In connection with Related Electric Power Services performed by BP under this Agreement, BP will be deemed to have provided to IDT an Invoice
for immediate payment in respect of any payments made to the ISO. If funds on deposit in the Collateral Account are not sufficient to pay the amount of such Invoice, then BP shall, at IDT’s request, extend the payment date for such deficient
amount for a period of 30 days after the extension is made (“Permitted Extension Period”) to the extent reasonably necessary to enable funds to be deposited into the Collateral Account to cover such deficient amount (any such
payment extension, a “Payment Extension”). 

  

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	 	(a)	Notwithstanding the foregoing, BP shall not be required to give any such Payment Extension if: 

  

	 	(i)	after giving effect to such Payment Extension, (A) a Collateral Requirement of IDT would arise under the Master Netting Agreement or (B) the total aggregate
amount of Payment Extensions outstanding would exceed * to IDT under any POR Program; 

  

	 	(ii)	the insufficiency of funds in the Collateral Account is due to Customers that are not covered by a POR Program failing to make direct payments to IDT when due as of the
date IDT requests the Payment Extension; 

  

	 	(iii)	such insufficiency of funds in the Collateral Account has been caused, or contributed to, by actions or inactions on the part of IDT or any Affiliates of IDT; or

  

	 	(iv)	the conditions that must be satisfied prior to BP’s entering into any Direct Transaction have not been fulfilled to the satisfaction of, or have not been waived
by, BP as of the date IDT requests such Payment Extension. 

  

	 	(b)	To the extent not reimbursed from future funds in the Collateral Account, IDT will pay all amounts subject to a Payment Extension in full on the last day of the
applicable Permitted Extension Period. 

  

	 	(c)	All amounts subject to a Payment Extension shall bear interest from the original payment due date for the amount included in the Payment Extension until the date when
the amount is paid in full at a per annum interest rate of LIBOR plus * basis points. Such accrued interest due on the Payment Extension amount shall be paid to BP on the earlier of the date on which the amount included in the Payment
Extension is paid in full or the last day of the applicable Payment Extension Period. 

  

	 	(d)	Failure to pay the Payment Extension amount, including accrued interest, as and when due would constitute an Event of Default. 

  

	10.3	Interest Accrual. 

  

	 	(a)	Any outstanding, unpaid amounts owed by IDT to BP, including any Payment Extension amount plus accrued interest thereon as provided in Section 10.1 not paid when
due, shall accrue (simple, not compounded) interest pursuant to the applicable Related Agreement, beginning on the applicable due date until the date upon which any such outstanding amount is paid; provided, however, that, in
calculating such interest, interest shall accrue only on that portion of the amount owed as may be outstanding from time to time. 

  

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	 	(b)	Any and all interest which may accrue pursuant to Section 10.3(a) shall be included on the next applicable Invoice delivered by BP hereunder, and any such interest
accrued shall be due and payable in accordance with the payment terms applicable to such next Invoice. 

  

	 	(c)	Notwithstanding the foregoing, the Parties acknowledge and agree that settlement and resettlement information received by BP from the ISO: (i) shall be treated as
incurred during the month in which BP receives such settlement or resettlement information from the ISO; (ii) shall be included on the applicable Invoice covering the month in which BP receives such settlement or resettlement information from
the ISO; (iii) shall be due and payable on the applicable due date with respect to such Invoice in accordance with the terms of this Agreement as applicable to such Invoice; and (iv) shall not accrue interest unless and until such amounts
remain outstanding and unpaid as of such due date, unless BP is subject to interest by the billing ISO. 

  

	10.4	Distribution from Collateral Account. On (a) the Monthly Distribution Date, (b) any date on which an Event of Default has occurred and is continuing,
(c) the date payment set forth in an Invoice is due under the terms of the relevant Related Agreement or (d) the date identified in any written disbursement request submitted by IDT to BP (which date will be at least two Business Days
after BP receives such written disbursement), BP shall submit instructions to the Account Bank holding the Collateral Account to withdraw the applicable amount and transfer such amount (i) to an account of a BP Party to satisfy any Obligations
or (ii) to that account of IDT that is identified in Exhibit 16.1(m) as IDT’s general account. On any date, funds in the account will be applied in the following order of priority, without duplication, as follows:

  

	 	(i)	first, to pay any sales taxes or transmission/distribution expenses for the transmission of Energy or Natural Gas transportation or storage expenses due and
payable by IDT to any third party (that is not an Affiliate of IDT) incurred in connection with any Direct Transaction or Credit-Enabled Transaction; 

  

	 	(ii)	second, to BP to pay any and all fees, expenses and other amounts due and owing (including amounts due and owing from a prior Delivery Period that remain unpaid)
to BP or BPCNA under the Transaction Documents, including amounts due and owing under the relevant Related Agreement(s) that, in any such case, are incurred in connection with any Direct Transaction or Credit-Enabled Transaction, and the Supply Fee
due and owing to BP under this Agreement, and any charges, fees returned checks or other amounts charged by the Account Bank that are paid from or debited against the Deposit Account or the Collateral Account (other than Payment Extensions);

  

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	 	(iii)	third, to reimburse BP for any Payment Extensions due and owing together with accrued interest thereon; 

  

	 	(iv)	fourth, if an IDT Event of Default has occurred and is continuing, all proceeds from the exercise of BP’s rights on account of such Event of Default on the
part of IDT, to be paid to BP for any and all Obligations which became due and payable immediately on account of such Event of Default, with any excess proceeds thereafter to be retained in the Collateral Account as collateral security for the
Obligations, and such amount reserved under this priority shall be unavailable for distribution pursuant to any lower priority under this Section 10.4 on such distribution date; and 

  

	 	(v)	fifth, provided (A) that no IDT Event of Default, and no event or occurrence that with the passage of time or the giving of notice or both would constitute
an IDT Event of Default, has occurred and is continuing and (B) no Payment Extension Period is in effect, on the last Business Day of each month (the “Monthly Distribution Date”), after application of available amounts to items
first through fourth above, at the written request of IDT and subject to any retention of funds in accordance with Section 9.2(e), any remaining funds shall be distributed solely to IDT and IDT shall have the right to use such cash as it
chooses. 

  

	10.5	ISO Billing Disputes. It is recognized by the Parties that the ISO may have established time periods for disputing certain matters and the Parties will be
subject to such periods in their performance under this Agreement. Therefore, notwithstanding any provisions in this Agreement, in the event a Party is barred from disputing and correcting or adjusting with the ISO any matter of any nature
whatsoever affecting any matter covered by this Agreement because the time period for such dispute has expired such that a Party would not have been able to file a dispute with the ISO prior to such expiration (a “Barred Issue”),
then the other Party shall be barred for all purposes from disputing any portion of any statement, invoice, notice or other matter hereunder to the extent that the first Party is unable to receive adjustment from or dispute such matter with the ISO
because it is a Barred Issue. BP shall be responsible for promptly reviewing the accuracy of all ISO settlement statements for the IDT related accounts and shall promptly notify the ISO and IDT in writing of any errors it finds in accordance with
the ISO’s applicable rules and procedures for disputes over ISO settlements. 

  

	10.6	 Disputed Invoices, etc. If either Party discovers, any error or inaccuracy in its own or the other Party’s invoice, payment, calculation,
measurement or determination, then proper adjustment and correction thereof will be made as promptly as practicable thereafter;

  

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provided, that no adjustments or corrections will be made with respect to errors or inaccuracies unless reasonably specific written notice of such error or inaccuracy is given to the other
Party within one (1) year of the date of such erroneous or inaccurate invoice, payment, calculation, measurement or determination. IDT may, in good faith, dispute the correctness of any invoice (or of any adjustment to any invoice), at any time
within one (1) year after the date of such invoice. In either such event, a Party shall deliver to the other Party a notice of dispute, stating the basis for the dispute or adjustment and setting forth the amount disputed in good faith (the
“Disputed Amounts”). The Parties will use commercially reasonable efforts to promptly resolve any dispute. Upon resolution of the dispute, any required payment shall be made within one (1) Business Day of such resolution along
with (i) simple (not compounded) interest accrued at the Interest Rate from the original due date until paid in full, if IDT is making such required payment and (ii) the amount of simple (not compounded) interest accrued at the Interest
Rate from the original due date until paid in full, if BP is making such required payment. 

 ARTICLE 11

 REGULATORY CHANGE 
  

	11.1	In the event of any change in applicable laws, rules or regulations during the term of this Agreement by a Governmental Authority that (a) makes it illegal for a
Party to continue to perform, either in whole or in material part, under this Agreement, or (b) result in a materially adverse change in a Party’s economics under this Agreement (a “Regulatory Event”), in each case which
cannot be avoided by such Party upon the exercise of its best efforts, then such Party (the “Affected Party”) may provide the other Party (the “Non-Affected Party”) written notice of the Regulatory Event. The
Parties shall for thirty (30) Business Days after such notice is delivered attempt in good faith to reach mutual agreement to resolve the material adverse economic impact on the Affected Party or the inability of the Affected Party to continue
to perform or to amend the terms of this Agreement in light of the Regulatory Event to give effect to the original intention of the Parties, consistent with the original economic expectations of both Parties. 

  

	11.2	If, despite good faith negotiations on the part of the Parties, the Parties are unable to reach agreement within thirty (30) days, then the Affected Party shall
have the right to terminate this Agreement and any affected Transactions, with settlement payment to be determined in accordance with the early termination provisions of the Master Netting Agreement. 

  

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 ARTICLE 12 
 PLANNED TERM; EARLY TERMINATION 
  

	12.1	Planned Term. Unless terminated earlier in accordance with this Agreement, this Agreement shall remain in full force and effect beginning on the Effective Date
and continue until the Planned Expiration Date (such period being the “Planned Term”); provided that this Agreement will renew automatically for a term of one (1) year following the prior Planned Expiration Date unless a
Party has provided written notice to the other Parties at least six (6) months prior to the next Planned Expiration Date that it will not renew this Agreement; provided further that this Agreement will not renew after June 30, 2012;
provided further that if this Agreement renews after June 30, 2011, the Early Termination fee specified in Section 12.2(c) shall no longer apply. The Planned Expiration Date shall not affect or excuse the performance of either Party
under any provision of this Agreement that by its terms survives such expiration. Further, this Agreement shall continue to apply to, and any such expiration of the Planned Term shall not affect or excuse the performance by either Party under, this
Agreement or any agreement between the Parties entered into pursuant hereto related to obligations which were undertaken prior to such expiration and which remain unperformed at the time of such expiration. Termination of this Agreement pursuant to
this Section 12.1 shall not affect the continued effectiveness of the EEI Agreement, the NAESB Agreement, the ISDA Agreement, and any Transactions confirmed under any of the foregoing, or the Master Netting Agreement. 

 

	12.2	Early Termination. Each of the Parties may terminate this Agreement prior to the end of the Planned Term (any such termination, an “Early
Termination”) as follows: 

  

	 	(a)	Early Termination by IDT. Upon sixty (60) days’ prior written notice to BP, IDT may terminate this Agreement at its election for convenience.

  

	 	(b)	Early Termination by BP. Upon four (4) months prior written notice to IDT, BP may terminate this Agreement if the long-term, unsecured indebtedness of BPCNA
is rated less than BBB- by S&P or less than Baa3 by Moody’s. 

  

	 	(c)	Effect of Early Termination. 

  

	 	(i)	On a Business Day that is no sooner than five (5) Business Days prior to the date on which the terminating Party has proposed, in its notice of termination
delivered pursuant to Section 12.2(a) or (b), as applicable, that this Agreement terminate, the non-terminating Party shall, using the terms of the Master Netting Agreement, calculate the UMA Final Settlement Amount as of such Business Day. In
determining the UMA Final Settlement Amount, (A) the non-terminating Party shall be deemed to be the Non-defaulting Party, and (B) the calculating Party shall include in the calculation of the UMA Final Settlement Amount only those Direct
Transactions or Credit-Enabled Transactions that will be terminated on the date of Early Termination pursuant to Article 15. Upon completing such calculation of the UMA Final Settlement Amount, such amount shall constitute the “Early
Termination Net Payment” hereunder. If the Early Termination Net Payment is positive, IDT shall pay to BP when due the Early Termination Net Payment. If the Early Termination Net Payment is negative, BP shall pay to IDT when due the Early
Termination Net Payment. 

  

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	 	(ii)	If IDT elects an Early Termination pursuant to Section 12.2(a), IDT shall be obligated to pay to BP, in addition to any Early Termination Net Payment that it may
owe upon an Early Termination, an amount equal to the greater of (A) * or (B) *% of the Supply Fees that, but for such Early Termination, IDT would owe to BP from the date of Early Termination through the end of the Planned Term (the
“Supply Fee Termination Payment”). BP shall calculate the Supply Fee Termination Payment. BP shall utilize the forecasted quantities of Natural Gas and Energy that, but for such Early Termination, BP would have sold and delivered to
IDT in connection with any Direct Transaction or Credit-Enabled Transaction from the date of Early Termination through the end of the Planned Term. If BP must pay to IDT when due the Early Termination Net Payment, BP may offset the Supply Fee
Termination Payment against the Early Termination Net Payment it owes. 

  

	 	(iii)	As soon as practicable after completing the calculation of the Early Termination Net Payment and, if any, the Supply Fee Termination Payment, the calculating Party
shall provide notice to the other Party of (A) the Early Termination Net Payment and, if any, the Supply Fee Termination Payment, (B) whether such Early Termination Net Payment is owed by the terminating Party or the non-terminating Party
and (C) the date on which such Early Termination Net Payment and, if any, the Supply Fee Termination Payment is due (which payment date shall be no sooner than two (2) Business Days following the date of Early Termination). If IDT owes any
amounts to BP under this Section 12.2, IDT also shall pay to BP in full, on the same day it is obligated to pay any Early Termination Net Payment or Supply Fee Termination Payment, any other outstanding Obligations (including amounts that
remain unpaid as a result of any Payment Extension and any outstanding Supply Fees). If the Party that owes such payment fails to make payment when due, the unpaid amount shall accrue interest at the Interest Rate from the payment date until such
amount is paid. 

  

	 	(iv)	Following such Early Termination, all Transactions that were included in the calculation of the Early Termination Net Payment shall be terminated and shall have no
further force and effect. With respect to Transactions that were not terminated upon such Early Termination, the provisions of Article 15 shall apply to such Transactions. 

  

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	 	(v)	Any amount that IDT is obligated to pay to BP under this Section 12.2 shall constitute one of the Obligations. 

 ARTICLE 13 
 TAX AND BANKRUPTCY 
  

	13.1	Taxes. Each Party shall be responsible for reporting and discharging its own tax measured by the profit or income of the Party. Each Party shall protect, defend
and indemnify the other Party from any and all loss, cost or liability arising from the indemnifying Party’s failure to report and discharge such taxes or satisfy such obligations. 

  

	13.2	Return of Documents and Information. Upon the termination or expiration of this Agreement, each Party shall destroy or return to the other all documents, data,
and Information belonging to the other Party and shall cooperate fully to ensure that the termination or expiration of this Agreement and the transition is accomplished in an efficient and businesslike manner. If such documents are destroyed, such
destruction shall be certified to the Party owning the Information by an officer of the Party destroying the same. The foregoing notwithstanding, neither Party shall be obligated to return or destroy any such documents, data or information that such
Party is retaining pursuant to a document retention policy established in connection with any civil or criminal investigations or litigation, in which event the documents, data and information shall be retained by the Party until such time as the
document retention policy is no longer in effect, at which time the documents, data and information shall be returned to the other Party or destroyed as aforesaid. To the extent that a Party’s computer back-up procedures create copies of any
such documents, data or information, such Party may retain such copies in its archival or back-up computer storage for the period the Party normally archives backed-up computer records. Any such documents, data or information so retained and not
destroyed will be kept confidential. 

  

	13.3	Bankruptcy Provisions. 

  

	 	(a)	The Parties acknowledge and agree that (i) this Agreement and each Transaction made under this Agreement or any Related Agreement constitute “forward
contracts” and/or a “swap agreement” and/or “master netting agreement” as defined under Title 11 of the United States Code (the “Bankruptcy Code”), (ii) each Party is a “forward contract
merchant” or “swap participant” as defined under the Bankruptcy Code, (iii) the rights of the Parties under the termination provisions of this Agreement or any Related Agreement will constitute contractual rights to liquidate,
net and setoff Transactions, (iv) any payment related to or setoff related to this Agreement or any Related Agreement shall constitute a “settlement payment” as defined in Section 101(51A) of the Bankruptcy Code; and (v) the
Parties are entitled to and desire enforcement of the rights under, and protections afforded by, Sections 362, 546, 553, 556, 560, 561, and 562 of the Bankruptcy Code. 

  

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	 	(b)	Under this Agreement, the term “setoff” means, without limitation, offset, combination of accounts, netting, right of retention or withholding, contractual
right to liquidate transactions, or comparable right or requirement to which a Party is entitled or subject to (whether arising under this Agreement, any Related Agreement, any other Transaction Document, or other agreements between the Parties,
under law or otherwise) that is exercised by, or imposed on, the other Party. Further, the Parties acknowledge and agree that, pursuant to Sections 362 and 546 of the Bankruptcy Code, transfers and payments made in connection with this
Agreement or any Related Agreement are not enjoined or otherwise precluded by the automatic stay imposed by the Bankruptcy Code and are not subject to avoidance under the Bankruptcy Code. 

 ARTICLE 14 
 [RESERVED] 
 ARTICLE 15 
 WIND-DOWN PERIOD 
  

	15.1	The period commencing on the day immediately following the last day of the Planned Term or the date selected by the terminating Party in connection with an Early
Termination (the “Wind-Down Commencement Date”) to the date of the satisfaction in full of all obligations under the Agreement and the other Related Agreements, including, without limitation, all Direct Transactions and all
Credit-Enabled Transactions (the “Wind-Down End Date”) will be referred to as the “Wind-Down Period.” 

  

	15.2	No later than 90 days before the last day of the Planned Term or no later than the date that is fifteen (15) days before the effective date of Early Termination,
as applicable, IDT will have the right and obligation to deliver to BP in writing a plan to wind-down BP’s exposure with respect to the Agreement and the Related Agreements. If IDT fails to deliver to BP such a plan by the date due, BP may
create the plan for winding-down its exposure, which plan shall be binding on IDT. Any such plan may include one or more of the following options: 

  

	 	(a)	“Assignment Option”: IDT may request BP to assign to one or more Creditworthy Assignees (as defined below) any of BP’s positions under
Credit-Enabled Transactions or Direct Transactions on price, terms and conditions acceptable to BP. 

  

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	 	(i)	In connection therewith BP shall be responsible for effecting the assignment of transactions, so long as a Creditworthy Assignee is available to take assignment and
assume all obligations under the assigned transactions going forward. 

  

	 	(ii)	Either the Creditworthy Assignee or IDT must accept all responsibility in respect of the position with the ISO or RTO. 

  

	 	(iii)	As used herein, “Creditworthy Assignee” shall mean a counterpart(ies) whose long-term unsecured debt is rated at least “A” by Moody’s or
“A” by S&P and the ability to perform on the applicable assigned transactions. 

  

	 	(b)	“Termination Option”: IDT may Close-Out any Credit-Enabled Transaction or Direct Transaction by paying to, or receiving from, BP an amount equal to the
UMA Final Settlement Amount, calculated under the Master Netting Agreement for the Direct Transactions and Credit-Enabled Transactions being Closed-Out. 

  

	 	(c)	“Hold Option”: IDT may leave in place any Credit-Enabled Transaction or Direct Transaction. However, until all Transactions have been finally assigned
under the Assignment Option, terminated under the Termination Option, expired under the Hold Option, or defeased under the Defease Option (as defined below), the Liens under the Security Documents securing this Agreement and the Related Agreements
shall remain in place and this Agreement shall remain in full force and effect solely with respect to such Credit-Enabled Transactions or Direct Transactions whose term extends beyond the Planned Term or effective date of the Early Termination of
this Agreement. 

  

	 	(d)	“Defease Option”: IDT may provide guaranties of Creditworthy Assignees or letters of credit, surety bonds, or cash in amounts and on terms reasonably
satisfactory to BP with respect to any Direct Transactions or Credit-Enabled Transactions left in place under the Hold Option, and for each transaction so guaranteed or secured, BP shall release its liens and security interests securing such
transaction. 

  

	15.3	During the Wind-Down Period in all cases, (i) IDT will not be permitted to enter into any Purchase Contracts or Sale Contracts that would affect BP’s rights
and obligations under this Agreement, and BP will be under no obligation to enter into Direct Transactions or Credit-Enabled Transactions and (ii) all provisions of the Agreement and the other Transaction Documents will remain in full force and
effect, except as described in clause (a) of Section 15.2. 

  

	 	(a)	In the event that all transactions under the Agreement have been finally assigned under the Assignment Option, terminated under the Termination Option, expired under
the Hold Option, or defeased under the Defease Option, BP shall within three (3) Business Days, terminate all of BP’s liens and security interests securing the Agreement. 

  

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 ARTICLE 16 
 REPRESENTATIONS AND WARRANTIES 
  

	16.1	Representation and Warranties of IDT. 

 IDT represents and warrants to the BP Parties as follows: 
  

	 	(a)	It (i) is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, (ii) is duly qualified and in good
standing as a foreign corporation and has all governmental licenses in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed and where, in each case, failure so
to qualify or be licensed and be in good standing has had, or could reasonably be expected to have a Material Adverse Effect and (iii) has all requisite corporate power and authority to own or lease and operate its properties and to carry on
its business as now conducted and as proposed to be conducted. 

  

	 	(b)	The execution, delivery and performance by it of each Transaction Document to which it is a party and the grant by it of the security interest pursuant to the Security
Documents and the Master Netting Agreement, and the consummation of the other transactions contemplated hereby and thereby, are within its powers, have been duly authorized by all necessary corporate action, and do not (i) contravene its
organizational documents, (ii) violate any applicable law, rule, regulation, order, writ, judgment, injunction, decree, determination or award, (iii) conflict with or result in the breach of, or constitute a default under, any contract,
loan, indenture, mortgage, deed of trust, lease or other instrument binding on it or any of its properties or (iv) except for the Liens granted in favor of BP hereunder and under the Security Documents and the Master Netting Agreement, result
in or require the creation or imposition of any Lien upon or with respect to any of its properties. 

  

	 	(c)	No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body or any other third party is required
for: 

  

	 	(i)	the due execution, delivery, recordation, filing or performance by it of the Transaction Documents to which it is a party or the consummation of the transactions
contemplated hereby or thereby; or 

  

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	 	(ii)	the exercise by the BP Parties of their rights under the Transaction Documents, except, as set forth in Schedule 16.1(c), for (A) authorization to
provide retail electricity and Natural Gas services and Related Services in the applicable jurisdictions which authorization has been obtained and is in full force and effect, (B) filings in respect of the Liens created under the Security
Documents or the Master Netting Agreement, including but not limited to notices and other filings in connection with the Assignment of Claims Act of 1940 in the case of any Government Contract, and (C) in the event of a foreclosure by BP on the
Collateral, filings with and approvals by any Government Authority and regulatory body, including but not limited to the Federal Energy Regulatory Commission. 

  

	 	(d)	Each Transaction Document to which it is a party has been duly and validly executed and delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency or other similar laws affecting the rights of creditors generally, and except as enforcement may be limited by general equitable principles
(regardless of whether enforcement is sought in a court of law or equity). 

  

	 	(e)	The balance sheet of IDT as at July 31, 2008 and the related statements of income and cash flows of IDT for the fiscal year then ended, with the unqualified
opinion thereon of IDT independent public accounting firms that is recognized by the Public Company Accounting Oversight Board, and the unaudited balance sheet of IDT and statements of income and cash flows of IDT for the period ending
April 30, 2009, copies of which have been furnished to BP, present fairly the financial condition of IDT as at such respective dates and the results of the operations of IDT for the respective periods ended on such dates, all in accordance with
generally accepted accounting principles applied on a consistent basis. Since April 30, 2009, no event or circumstance has occurred that has had, or could reasonably be expected to have, a Material Adverse Effect. 

  

	 	(f)	There is no action, suit, litigation or proceeding against it or any of its property pending before any court, Government Authority or arbitrator, or, to its knowledge,
threatened, nor is there any investigation pending in respect of it that has had, or could reasonably be expected to have, a Material Adverse Effect. 

  

	 	(g)	There are no material issues regarding it that arose prior to the date of this Agreement that could reasonably be expected to have an impact on BP’s credit or
contracts with the ISO or RTO. 

  

	 	(h)	It is not (i) an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended or (ii) a
“commodity pool operator” or a “commodity trading advisor” as defined in, or subject to regulation under the Commodities Exchange Act, as amended. 

  

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	 	(i)	It is the sole beneficial owner of, and has good and legal title to the Collateral, free and clear of all Liens and other adverse claims and encumbrances. No Lien
exists or will exist upon the Collateral at any time, except for the Lien in favor of BP created or provided for herein and under the Security Documents, which Lien created in favor of the BP Parties constitutes a valid first and prior perfected
Lien on the Collateral, subject to no other Lien. 

  

	 	(j)	Its full and correct legal name, type of organization, jurisdiction of organization, organizational ID number (if applicable) and mailing address as of the Effective
Date are correctly set forth in Annex 1 to the Pledge and Security Agreement. There is no UCC financing statement or similar Lien filing describing IDT’s property or identifying IDT as a debtor in effect on the Effective Date except as set
forth on Annex 1. 

  

	 	(k)	It has not (i) within the period of four months prior to the Effective Date, changed its location (as defined in Section 9-307 of the UCC),
(ii) heretofore changed its name, or (iii) heretofore become a “new debtor” (as defined in Section 9-102(a)(56) of the UCC) with respect to a currently effective security agreement previously entered into by any other
Person. 

  

	 	(l)	[Reserved] 

  

	 	(m)	Other than what is set forth in the IDT financial statements through April 30, 2009, it does not have (i) any Indebtedness or (ii) other liabilities
other than obligations under existing Sale Contracts and existing Purchase Contracts to which it is a party. Schedule 16.1(m) sets forth a complete and correct list of all such Purchase Contracts and Sales Contracts in effect as of the
Effective Date. 

  

	 	(n)	It has no subsidiaries other than North American Energy, Inc. 

  

	 	(o)	It has delivered to BP a true and complete copy of its organizational documents. The only shareholder of IDT on the date this representation is made is IDT Capital,
Inc., which is a wholly owned subsidiary of IDT Corp. As of the date this representation is made, (A) all equity interests in IDT have been duly authorized and validly issued and are outstanding, (B) there are no outstanding equity rights
with respect to IDT, including (1) any securities convertible into or exchangeable for equity interests in IDT, or (2) any rights to subscribe for or to purchase, or any options, warrants, or other rights to acquire, equity interests in
IDT, and (C) there are no outstanding obligations of IDT to repurchase, redeem, or otherwise acquire any partnership or other equity interests, or securities convertible into or exchangeable or exercisable for equity interests, in IDT, nor are
there any outstanding obligations of IDT to make payments to any Person, such as “phantom stock” payments, where the amount thereof is calculated with reference to the fair market value or equity value of IDT. 

  

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	 	(p)	It has obtained all environmental, health and safety permits, licenses and other authorizations required under all Environmental Laws to carry on its business as now
being or as proposed to be conducted, except to the extent failure to have any such permit, license or authorization has not had, or could not reasonably be expected to have, (either individually or in the aggregate) a Material Adverse Effect. Each
of such permits, licenses and authorizations is in full force and effect and it is in compliance with the terms and conditions thereof, and is also in compliance with all other limitations, restrictions, conditions, standards, prohibitions,
requirements, obligations, schedules and timetables contained in any applicable Environmental Law or in any regulation, code, plan, order, decree, judgment, injunction, notice or demand letter issued, entered, promulgated or approved thereunder,
except to the extent failure to comply therewith has not had, or could not reasonably be expected to have, (either individually or in the aggregate) a Material Adverse Effect. In addition, no notice, notification, demand, request for information,
citation, summons or order has been issued, no complaint has been filed, no penalty has been assessed and no investigation or review is pending or threatened by any governmental or other entity with respect to any alleged failure by it to have any
environmental, health or safety permit, license or other authorization required under any Environmental Law in connection with the conduct of the business of it or with respect to any generation, treatment, storage, recycling, transportation,
discharge or disposal, or any release of any Hazardous Materials generated by it that, individually or in the aggregate, has had, or could reasonably be expected to have, a Material Adverse Effect. All environmental investigations, studies, audits,
tests, reviews or other analyses conducted by or that are in the possession of it in relation to facts, circumstances or conditions at or affecting any site or facility now or previously owned, operated or leased by it and that has resulted in, or
could reasonably be expected to result in, a Material Adverse Effect, in each case, have been made available to BP. 

  

	 	(q)	It is in compliance in all material respects with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, including, but not limited to, having obtained and maintained in full compliance all retail licenses and any other licenses and permits required from any Governmental Authority
necessary to carry out its retail Energy business and retail Natural Gas business. 

  

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	 	(r)	The information, reports, financial statements, exhibits and schedules furnished in writing by or on behalf of IDT to the BP Parties in connection with the negotiation,
preparation or delivery of the Transaction Documents or included herein or therein or delivered pursuant hereto or thereto, when taken as a whole, do not contain any untrue statement of material fact or omit to state any material fact necessary to
make the statements herein or therein, in the light of the circumstances under which they were made, not misleading. 

  

	 	(s)	It has not been suspended, debarred or declared ineligible, or been proposed for suspension, debarment, or ineligibility, from or with respect to bidding on or
performing Government Contracts or from doing business with any Government Authority. It has not been (and is not now being), within the past six years: (i) audited (outside the audits conducted in the ordinary course of business) or
investigated; (ii) subject to any indictments or civil, administrative or criminal complaints by any Governmental Authority, or any contractor or subcontractor with a Governmental Authority; or (iii) threatened with any such audit or
investigation or requested to provide information with respect to any alleged irregularity, misstatement or omission arising under or relating to any Government Contract or any Government Bid. It has complied in all material respects with all laws
and regulations applicable to Government Contracts governing or applicable to its Government Contracts and Government Bids, including the terms and conditions of all such Government Contracts and Government Bids. Each Government Contract performed
or being performed by it was legally and properly awarded to it and, if performance is ongoing, each Government Contract is currently valid. It has not, in obtaining or performing any Government Contract, violated any laws, regulations, rules,
directives, requirements or procedures of any Governmental Authority or any other applicable legal requirement. 

  

	 	(t)	It has obtained liability insurance, in an amount not less than $10,000,000 per occurrence, with financially sound and reputable insurance companies (rated at least
“A” by A M Best), and with respect to risks of a character usually maintained by companies engaged in the same or similar business similarly situated. 

  

	 	(u)	It has paid and discharged all taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of its property prior to the
date on which penalties attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained in accordance with
generally accepted accounting principles. 

  

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	 	(v)	It is and, upon its incurrence of any Obligations and after giving effect to the transactions in connection herewith and the other Transaction Documents, will be,
Solvent. 

  

	 	(w)	Schedule 16.1(w) sets forth a complete and correct list of Authorized Direct Pay Customers. 

  

	16.2	Representation and Warranties of the BP Parties. 

 Each of the BP Parties represents and warrants to IDT as follows: 
  

	 	(a)	It (i) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) is duly qualified
and in good standing as a foreign corporation and has all governmental licenses in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed and where, in each case,
failure so to qualify or be licensed and be in good standing could reasonably be expected to have a Material Adverse Effect and (iii) has all requisite power (corporate or other) and authority to own or lease and operate its properties and to
carry on its business as now conducted and as proposed to be conducted. 

  

	 	(b)	The making and performance by it of each Transaction Document to which it is a party, and the consummation of the other transactions contemplated hereby and thereby,
are within its powers, have been duly authorized by all necessary corporate action, and do not (i) contravene its relevant organizational documents, (ii) violate any applicable law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award, or (iii) conflict with or result in the breach of, or constitute a default under, any contract, loan, indenture, mortgage, deed of trust, lease or other instrument binding on it or any of its properties.

  

	 	(c)	No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body or any other third party is required for
(i) the due execution, delivery, recordation, filing or performance by it of the Transaction Documents to which it is a party or the consummation of the transactions contemplated hereby or thereby or (ii) the exercise by BP of its rights
hereunder for authorization to provide retail electricity services in the applicable jurisdictions which authorization has been obtained and is in full force and effect. 

  

	 	(d)	Each Transaction Document to which it is a party has been duly and validly executed and delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency or other similar laws affecting the rights of creditors generally, and except as enforcement may be limited by general equitable principles
(regardless of whether enforcement is sought in a court of law or equity). 

  

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	 	(e)	There is no action, suit, litigation or proceeding against it or any of its property pending before any court, governmental agency or arbitrator, or, to the knowledge
of BP, threatened, nor is there any investigation pending to the knowledge of BP in respect of it, that could reasonably be expected to have a Material Adverse Effect. 

  

	 	(f)	The information, reports, financial statements, exhibits and schedules furnished in writing by or on behalf of BP or BPCNA to IDT in connection with the negotiation,
preparation or delivery of the Transaction Documents or included herein or therein or delivered pursuant hereto or thereto, when taken as a whole, do not contain any untrue statement of material fact or omit to state any material fact necessary to
make the statements herein or therein, in the light of the circumstances under which they were made, not misleading. 

  

	 	(g)	BP has not been suspended, debarred or declared ineligible, or been proposed for suspension, debarment, or ineligibility, from or with respect to bidding on or
performing Government Contracts or from doing business with any Government Authority. BP has complied in all material respects with all laws and regulations applicable to Government Contracts governing or applicable to its Government Contracts and
Government Bids, including the terms and conditions of all such Government Contracts and Government Bids. Each Government Contract performed or being performed by BP was legally and properly awarded to BP and, if performance is ongoing, each
Government Contract is currently valid. BP has not, in obtaining or performing any Government Contract, violated any laws, regulations, rules, directives, requirements or procedures of any Governmental Authority or any other applicable legal
requirement. 

 ARTICLE 17 
 COVENANTS 
  

	17.1	Covenants of IDT. Until the Obligations have expired or been terminated and the amounts that remain unpaid as the result of any Payment Extension and all fees
payable hereunder shall have been paid in full, IDT covenants and agrees with the BP Parties that: 

  

	 	(a)	Notice of Event of Defaults. It will promptly give BP notice after it knows or has reason to believe that any IDT Event of Default has occurred, a notice of such
IDT Event of Default describing the same in reasonable detail and, together with such notice or as soon thereafter as possible, a description of the action that it has taken or proposes to take with respect thereto. 

  

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	 	(b)	Litigation. It will promptly give to BP notice of all legal or arbitral proceedings, and of all proceedings by or before any Governmental Authority, arbitration
panel or regulatory agency, and any material development in respect of such legal or other proceedings, affecting it. 

  

	 	(c)	Existence, Etc. IDT will: 

  

	 	(i)	preserve and maintain all of its material rights, privileges, licenses and franchises; 

  

	 	(ii)	comply in all material respects with the Legal Requirements of all applicable laws, rules, regulations and orders of any Governmental Authority (including without
limitation the Reliability Standards of NERC, ERISA (if applicable) and all Environmental Laws); 

  

	 	(iii)	maintain in full force and effect all retail operating licenses and all other licenses, permits, consents, approvals, and authorizations necessary to enter into and
perform its Obligations under this Agreement and any other Transaction Document, and to continue its retail power business in the territory of NYISO; 

  

	 	(iv)	pay and discharge all taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of its property prior to the date on
which penalties attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained in accordance with generally
accepted accounting principles; and 

  

	 	(v)	timely pay and discharge all of its other material obligations, including its obligations under this Agreement and the other Transaction Documents, except those that
are being contested in good faith and by proper proceedings and against which adequate reserves are being maintained in accordance with generally accepted accounting principles. 

  

	 	(d)	Separateness and Going concern. IDT will: 

  

	 	(i)	maintain its own separate books and records and bank accounts; 

  

	 	(ii)	at all times hold itself out to the public and all other Persons as a legal entity separate from any other Person; 

  

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	 	(iii)	conduct its business in its own name through its duly authorized officers and comply with all organizational formalities to maintain its separate existence;

  

	 	(iv)	comply with GAAP in all financial statements and reports required of it and issue such financial statements and reports separately from any financial statements or
reports prepared for its members and Affiliates; provided that such financial statements or reports may be consolidated if the separate existence of IDT and its assets and liabilities, are clearly noted therein; 

  

	 	(v)	account for and manage all of its liabilities separately from any other Person, and pay its own liabilities only out of its own funds; 

  

	 	(vi)	use separate invoices and checks with its name and no other name; 

  

	 	(vii)	correct any known misunderstanding regarding its separate identity; 

  

	 	(viii)	maintain adequate capital for its business, transactions and liabilities as exist on the Closing Date; 

  

	 	(ix)	subject to IDT Corporation’s risk management policies and procedures, make all decisions with respect to its business and daily operations independently, although
its manager or officers making any particular decision may also be employees, officers, directors or managers of the Parent, its members or its Affiliates; 

  

	 	(x)	remain Solvent, provided that the foregoing shall not be construed as imposing an obligation on its members or Affiliates to contribute additional capital to it;

  

	 	(xi)	maintain all of its assets used or useful in its business in good working order and condition, ordinary wear and tear excepted; and 

  

	 	(e)	Liens. IDT will not create, incur, assume or suffer to exist any Lien upon any of the Collateral other than the Liens created under the Security Documents.

  

	 	(f)	Insurance. IDT will maintain liability insurance, in an amount not less than $10,000,000 per occurrence with financially sound and reputable insurance companies
(rated at least “A” by A M Best), and with respect to risks of a character usually maintained by companies engaged in the same or similar business similarly situated. 

  

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	 	(g)	Limitation on Sale Contracts. Absent BP’s prior written consent, which consent shall not be unreasonably withheld, IDT shall not enter into any Sale
Contract to any Non-POR Customer or for a fixed-price to any POR Customer. 

  

	 	(h)	Further Assurances. IDT will promptly from time to time do all such acts and things as may be required in the reasonable opinion of BP to give effect to this
Agreement and the other Transaction Documents and to preserve and protect the rights of the BP Parties hereunder and thereunder, including with respect to any notices, assignments or other documents required to be completed under the Assignment of
Claims Act of 1940. 

  

	 	(i)	Payments. IDT shall require that any and all amounts owing to it under any Purchase Contract or Sale Contract (other than Government Contracts) or under or
pursuant to any other agreement or instrument shall be paid directly to the Deposit Account, and shall include in each Sale Contract entered into after the Effective Date the Payment Provision. 

  

	 	(j)	Copies of Representative Terms and Conditions. Upon BP’s written request, IDT shall provide BP with copies of its standard terms and conditions for retail
sales. 

  

	 	(k)	Information. All written information furnished after the Effective Date by IDT to BP or BPCNA in connection with this Agreement or the other Transaction
Documents and the transactions contemplated hereby and thereby will be true, complete and accurate in every material respect and will not contain any material omissions, or (in the case of projections) based on reasonable estimates and assumptions,
on the date as of which such information is stated or certified. 

  

	 	(l)	Transactions with North American Energy. Other than Permitted Other Transactions, IDT will not receive natural gas or Related Natural Gas Services from North
American Energy without the express prior written consent of BP. 

  

	17.2	Covenant of BP Parties. Until the Obligations have expired or been terminated and the amounts that remain unpaid as the result of any Payment Extension and all
fees payable hereunder shall have been paid in full, each of the BP Parties covenant and agree with IDT that it will promptly give IDT notice after it knows or has reason to believe that any BP Event of Default has occurred, a notice of such BP
Event of Default describing the same in reasonable detail and, together with such notice or as soon thereafter as possible, a description of the action that it has taken or proposes to take with respect thereto. 

  

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 ARTICLE 18 
 EVENTS OF DEFAULT 
  

	18.1	IDT Events of Default. If any of the following events (each an “Event of Default”) shall occur and be continuing: 

  

	 	(a)	IDT shall fail to pay any amount as and when such amount shall become due and payable to BP under this Agreement or any other Transaction Document, unless such amount
is subject to a Payment Extension in which event a failure on the part of IDT to pay any amount that was not paid due solely to any Payment Extension when and as the same shall become due and payable, whether at the due date thereof or at a date
fixed for prepayment thereof or otherwise; or 

  

	 	(b)	IDT shall fail to pay any interest on any amount including any Payment Extension or any fee or any other amount (other than an amount referred to in clause (a) of
this Article) payable under this Agreement or under any other Transaction Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days or more; or

  

	 	(c)	any material failure of IDT to observe any provision, term, covenant or agreement (other than any term, covenant or agreement referred to in clause (a) or (b))
under (i) this Agreement, its organizational documents, or any other Transaction Document (including without limitation the EEI Agreement, the NAESB Agreement, or the ISDA Agreement) or (ii) Sale Contracts under which, individually or in
the aggregate, the sale and delivery of Energy, Natural Gas or Related Services during any period would exceed 3% of IDT’s aggregate sales and deliveries of such products over such period, including any failure by IDT (A) to deliver
requisite power or any other product or service under such Sale Contracts when due or (B) to provide timely billing invoices to Customers for power or any other product or service delivered by IDT under such applicable Sale Contracts, and, in
the case of either clause (i) or (ii), such failure continues unremedied for a period of five (5) Business Days or more (or two (2) Business Days in respect of any payment default) after the date on which IDT has or should have
knowledge of such failure or BP shall have given IDT notice of such failure and such failure is capable of being remedied within such five (5)-Business Day period (or two (2)-Business Day period, as applicable); or 

  

	 	(d)	IDT shall fail to deliver to BP when due Performance Assurances, pursuant Section 2.2 and the Master Netting Agreement, and such failure continues for one
(1) Business Day; or 

  

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	 	(e)	any representation, warranty or certification made or deemed made by IDT in this Agreement or any other Transaction Document to which it is a party, or in any amendment
or supplement hereto or thereto, or any certificate furnished to BP or BPCNA pursuant to the provisions hereof or thereof, shall prove to have been false or misleading as of the time made or furnished in any material respect, if such representation,
warranty or certification shall remain false or misleading for 30 days after the date on which IDT has knowledge of such failure or BP shall have given IDT notice of such failure and such failure is capable of being corrected within such 30-day
period; or 

  

	 	(f)	a MNA Default where IDT is the Defaulting Party shall have occurred and shall be continuing; or 

  

	 	(g)	a final judgment or judgments for the payment of money of $5,000,000 or more in the aggregate, or a final judgment or judgments for non-monetary relief that has had or
could reasonably be expected to have a Material Adverse Effect, shall be rendered by one or more courts, administrative or arbitral tribunals or other bodies having jurisdiction against IDT and the same shall not be discharged (or provision shall
not be made for such discharge), or a stay of execution thereof shall not be procured, within 30 days from the date of entry thereof and IDT shall not, within said period of 30 days, or such longer period during which execution of the same shall
have been stayed, appeal therefrom and cause the execution thereof to be stayed during such appeal; or 

  

	 	(h)	any of the Liens created by the Security Documents or the Master Netting Agreement shall at any time not constitute a valid first and prior perfected Lien on the
Collateral purported to be covered thereby in favor of BP, free and clear of all other Liens (other than resulting from the failure of IDT to retain possession of the Collateral thereunder in the jurisdiction provided thereunder) and such Lien is
not restored as a valid first and prior perfected Lien within ten (10) Business Days of such time, or any provision of any Security Document shall for whatever reason cease to be in full force and effect, or the enforceability thereof shall be
contested by IDT; or 

  

	 	(i)	the validity or enforceability of any Transaction Document shall be contested by IDT or any Transaction Document shall not be in full force and effect and enforceable
in accordance with its terms against IDT; 

  

	 	(j)	the total aggregate amount subject to one or more Payment Extensions exceeds 105% of the aggregate existing outstanding amounts due and owing to IDT (i) under any
POR Program and (ii) from the Authorized Direct Pay Customers; or 

  

	 	(k)	 an Event of Default shall have occurred pursuant to Section 5.8 hereof

  

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 then, and in every such event, and at any time thereafter during the continuance of such event, the BP
Parties may take any or all of the following actions, at the same or different times: 
  

	 	(i)	terminate any obligations of the BP Parties under this Agreement or any other Transaction Document and exercise the rights and remedies under the Master Netting
Agreement of a Non-defaulting Party if a MNA Default has occurred and is continuing; 

  

	 	(ii)	declare the Payment Extensions and all other Obligations then outstanding to be due and payable in whole (or in part, in which case any Payment Extension or other
Obligation not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the Payment Extensions and other Obligations so declared to be due and payable, together with accrued interest thereon and all fees and
other obligations of IDT accrued hereunder or under any other Transaction Document, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by IDT; provided
that, if the Event of Default occurs under the Master Netting Agreement due to the Bankruptcy of IDT, the Payment Extensions then outstanding, and all other Obligations then outstanding, together with accrued interest thereon and all fees and other
Obligations of IDT shall become immediately due and payable in full without presentment, demand, protest or other notice of any kind, all of which are hereby waived by IDT; and 

  

	 	(iii)	exercise its rights with respect to the Collateral under the Security Documents. 

 Any and all proceeds of the exercise of such rights (including amounts constituting the Independent Collateral Amount) shall be deposited to the credit of the Collateral Account to be distributed
therefrom in the following order of priority: First, to pay to the BP Parties any and all fees, expenses and other Obligations due and owing to the BP Parties under this Agreement and the other Transaction Documents (including the EEI Agreement, the
NAESB Agreement, and the ISDA Agreement), including any Supply Fee due and owing to the BP Parties under this Agreement, interest, and all fees, costs and expenses that the BP Parties incur to enforce its rights under this Agreement and the other
Transaction Documents, and second, after applying such proceeds to the payment of all amounts described in priority first, any remaining amounts shall be paid in accordance with the remaining provisions of Section 10.4. 
  

	18.2	BP Event of Default. If any of the following events (each a “BP Event of Default”) shall occur and be continuing: 

  

	 	(a)	any representation, warranty or certification made or deemed made by BP or BPCNA in this Agreement or any other Transaction Document to which it is a party, or in any
amendment or supplement hereto or thereto, or any certificate furnished to IDT pursuant to the provisions hereof or thereof, shall prove to have been false or misleading as of the time made or furnished in any material respect, if such
representation, warranty or certification shall remain false or misleading for 30 days after the date on which BP or BPCNA has knowledge of such failure or IDT shall have given BP or BPCNA notice of such failure and is capable of being corrected
within such 30-day period; or 

  

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	 	(b)	BP or BPCNA shall materially fail to perform or observe any provision, term, covenant or agreement of it contained in this Agreement or any other Transaction Document
to which it is a party (including without limitation the EEI Agreement, the NAESB Agreement, or the ISDA Agreement), if such failure shall remain unremedied for 10 Business Days (or 2 Business Days in respect of any payment default) after the date
on which any BP or BPCNA has knowledge of such failure or IDT shall have given BP notice of such failure and such failure is capable of being remedied within such ten (10) Business Day period (or two (2) Business Day period, as
applicable); 

  

	 	(c)	a MNA Default where BP or BPCNA is the Defaulting Party shall have occurred and shall be continuing; or 

  

	 	(d)	a final judgment or judgments for the payment of money of $5,000,000,000 or more in the aggregate shall be rendered by one or more courts, administrative tribunals or
other bodies having jurisdiction against BP or BPCNA and the same shall not be discharged (or provision shall not be made for such discharge), or a stay of execution thereof shall not be procured, within 30 days from the date of entry thereof and
the BP Parties shall not, within said period of 30 days, or such longer period during which execution of the same shall have been stayed, appeal therefrom and cause the execution thereof to be stayed during such appeal; 

  

	 	(e)	the validity or enforceability of any Transaction Document shall be contested by BP or BPCNA or any Transaction Document shall not be in full force and effect and
enforceable in accordance with its terms against BP or BPCNA as applicable; or 

  

	 	(f)	either of the BP Parties withdraws funds in deposit in the Collateral Account in material violation of the terms of this Agreement or a Deposit Account Control
Agreement; 

 then, and in every such event and at any time thereafter during the continuance of such event, IDT may
(i) terminate any obligations of IDT under this Agreement or any other Transaction Document and exercise the rights and remedies under the Master Netting Agreement of a Non-defaulting Party if a MNA Default has occurred and is continuing, and
(ii) exercise any of its rights under the Transaction Documents, including the rights and remedies under the Master Netting Agreement of a Non-defaulting Party if a MNA Default has occurred and is continuing, and all proceeds of the exercise of
such rights shall be deposited to the credit of the Collateral Account to be applied in accordance with Section 10.4. IDT shall not be obligated to make any termination payment or other penalty in connection with the exercise of its rights
under the Transaction Documents in connection with a BP Event of Default. 
  

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	18.3	MNA Default under Master Netting Agreement. If a MNA Default has been declared under the Master Netting Agreement, but the underlying event or condition that
gave rise to such MNA Default is no longer outstanding and continuing, then no Event of Default shall be outstanding or continuing under Section 18.1 or 18.2 of this Agreement regardless of whether or not such MNA Default continues under the
Master Netting Agreement. 

 ARTICLE 19 
 MISCELLANEOUS 
  

	19.1	Amendments, Consents, Etc. No amendment or waiver of any provision of this Agreement, nor any consent to any departure by IDT from any provision hereof, shall in
any event be effective unless the same shall be in writing and signed by IDT, BP, and BPCNA and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

  

	19.2	Notices, Etc. All notices and other communications provided for hereunder shall be in writing (including telecopy communication and electronic mail) and mailed,
sent by telecopy or other means of electronic transmission approved in advance by the recipient party or delivered by hand or overnight courier service, as follows: 

  

	 	(a)	if to IDT, at its address at: 

 IDT Energy, Inc. 
 550 Broad Street 
 Newark, NJ 07102 
 Attn: Geoff Rochwarger 
 Telephone number: 973-438-4434 
 Fax: 973-438-1285 
 E-mail address: geoff@idtenergy.com 
 With copies to 
 IDT Corporation 
 550 Broad Street 
 Newark, NJ 07102 
 Attn: Legal Department 
 Telephone: 973-438-4236 
 Fax: 973-438-1455 
  

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	 	(b)	if to BP, at its address at: 

 BP
Energy Company 
 501 Westlake Park Blvd 
 Houston, TX 77079 
 Attn: Power Contracts Administration 
 Telephone number: 281-366-1649 
 Fax: 281-366-4929 
 With copies to: 
 BP Energy Company 
 501 Westlake Park Blvd 
 Houston, TX 77079 
 Attn: Senior Attorney, Power 
 Fax: 281-366-7583 
 The foregoing designations for a Party may be changed by such
Party in a written notice to the other Parties. All such notices and communications shall be effective upon receipt if received during ordinary business hours or, if received after ordinary business hours, at the commencement of the next Business
Day. 
  

	19.3	No Waiver; Remedies. No failure on the part of BP, BPCNA or IDT to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

  

	19.4	Indemnification. 

  

	 	(a)	IDT will indemnify and hold the BP Parties, and their respective officers, directors, shareholders, Affiliates, employees and agents (for this Section 19.4(a), an
“Indemnified Party”), harmless from and against any and all claims, damages, losses, liabilities, and expenses (including, without limitation, reasonable fees and disbursements of counsel), joint or several, that may be incurred by
or asserted or awarded against any Indemnified Party (including, without limitation, in connection with or relating to any investigation, litigation, or proceeding or the preparation of any defense in connection therewith), in each case arising out
of or in connection with or by reason of the transaction documentation or any breach thereof or any of the transactions contemplated thereby, including acts or omissions regarding the accounts provided for under Article 9, except to the extent such
claim, damage, loss, liability, or expense resulted from such Indemnified Party’s gross negligence or willful misconduct. 

  

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	 	(b)	The BP Parties will indemnify and hold IDT, and its officers, directors, shareholders, Affiliates, employees and agents (for this Section 19.4(b) an
“Indemnified Party”), harmless from and against any and all claims, damages, losses, liabilities, and expenses (including, without limitation, reasonable fees and disbursements of counsel), joint or several, that may be incurred by
or asserted or awarded against any Indemnified Party (including, without limitation, in connection with or relating to any investigation, litigation, or proceeding or the preparation of any defense in connection therewith), in each case arising out
of or in connection with or by reason of the transaction documentation or any breach thereof or any of the transactions contemplated thereby, including acts or omissions regarding the accounts provided for under Article 9, except to the extent such
claim, damage, loss, liability, or expense resulted from such Indemnified Party’s gross negligence or willful misconduct. 

  

	19.5	Governing Law; Submission to Jurisdiction. 

  

	 	(a)	GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED FOR ALL PURPOSES, INCLUDING THE RESOLUTION OF ALL DISPUTES BETWEEN OR AMONG PARTIES, BY AND CONSTRUED IN
ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK, EXCLUSIVE OF ANY CONFLICTS OF LAWS PRINCIPLES THAT COULD REQUIRE THE APPLICATION OF ANY OTHER LAW. 

  

	 	(b)	Submission to Jurisdiction. Each of the Parties hereto irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of
the courts of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court
or, to the fullest extent permitted by applicable law, in such Federal court. Each of the Parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that a party may otherwise have to bring any action or proceeding relating to any Related Agreement against the other party, or its properties in the
courts of any jurisdiction. 

  

	 	(c)	Waiver of Venue. Each Party hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or
hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement in any court referred to in clause (b) of this Section, and hereby irrevocably waives, to the fullest extent permitted by applicable
law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

  

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	 	(d)	Service of Process. IDT agrees that service of process in any action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to IDT Energy, Inc. c/o IDT CORPORATION, 1430 Broadway, Suite 1615, New York, New York 10018, Attention: General Counsel. Each of the BP Parties hereto irrevocably consents to service of
process in the manner provided for notices in Section 19.2. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law. 

  

	19.6   	Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of
a manually executed counterpart of this Agreement. 

  

	19.7   	WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT OR THE PERFORMANCE OR NONPERFORMANCE OR OBLIGATIONS ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT. 

  

	19.8   	Severability. If any provision of this Agreement is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the
other provisions of this Agreement shall remain in full force and effect in such jurisdiction and shall be construed in order to carry out the intentions of the Parties hereto as nearly as may be possible and (b) the invalidity or
unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction. 

  

	19.9   	Captions. The table of contents and captions and section headings appearing herein are included solely for convenience of reference and are not intended to
affect the interpretation of any provision of this Agreement. 

  

	19.10 	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted
assigns, provided, no Party may assign any of its rights or obligations hereunder without the prior written consent of the other Parties, which consent shall not be unreasonably withheld. 

  

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	19.11 	Integration. This Agreement, together with the other Transaction Documents, constitutes the entire agreement and understanding among the parties hereto and
supersedes any and all prior agreements and understandings, oral and written, relating to the subject matter hereof. 

  

	19.12 	USA PATRIOT Act. BP hereby notifies IDT that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107 56 (signed into law October 26,
2001)), BP may be required to obtain, verify and record information that identifies IDT, which information includes the name and address of IDT, and other information that will allow BP to identify IDT in accordance with said Act.

  

	19.13 	Confidentiality. 

 Each
Party agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers and employees, including accountants, legal counsel and other
advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory
authority, including in the case of BP the federally appointed monitor and his staff, (c) to the extent required by applicable laws, rules or regulations, including those with respect to securities laws (including any rules or regulations
promulgated by a registered securities exchange), or by any subpoena or similar legal process, (d) in connection with the exercise of any remedies hereunder or any other Transaction Document or any suit, action or proceeding relating to this
Agreement or any other Transaction Document or the enforcement of rights hereunder or thereunder, (e) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or participant in,
or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or any other Transaction Document or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to IDT and its obligations, (f) with the consent of the other Party or (g) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to
such Party, on a non-confidential basis from a source other than the other Party. 
 For the purposes of this Section,
“Information” means all information received from one Party relating to such Party or its business; provided, that all reports and information required to be delivered to a Party hereunder or any other Transaction Document shall be
deemed to be Information without further action. Confidential Information does not include any information which (a) was know to the receiving Party prior to the date of its disclosure pursuant to this Agreement and to which there is no
existing obligation of confidentiality, (b) is or becomes generally available to the public other than through the act or omission of the receiving Party or its Representatives, (c) becomes available to the receiving party on a
non-confidential basis from a source other than the disclosing Party

  

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or its Representatives, provided that such source is not bound by a confidentiality agreement with the disclosing party or its Representatives or otherwise prohibited from transmitting such
confidential Information to the receiving party or the receiving party’s Representatives by a contractual, legal or fiduciary obligation, or (d) is independently developed by the receiving Party or any of its Affiliates without the use of
or reliance upon the confidential Information. 
 Any Person required to maintain the confidentiality of Information as provided
in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential
information. 
 No party shall disclose to any other third party or issue a press release or any other form of public information
involving the other Party without the other Party’s prior approval and written consent except, following a reasonable opportunity by BP to comment, to the extent required by applicable laws, rules or regulations, including those with respect to
securities laws (including any rules or regulations promulgated by a registered securities exchange). 
 The Parties acknowledge
information provided by IDT or its Affiliates and BP and its Affiliates, including without limitation consumer information, as confidential and proprietary to IDT or BP and its Affiliates. The Parties will limit access to such information to members
of its trade control, regulatory, compliance, risk management, credit and legal departments. BP front office personnel shall be limited on a need-to-know basis only. The BP Parties shall comply with applicable federal and state law with regard to
consumer information with respect to Customers provided by IDT or its Affiliates to BP or BPCNA. 
 The Confidential Information
shall remain the property of the disclosing Party, and the disclosing Party may demand the return thereof at any time, upon giving thirty (30) days prior written notice to the receiving Party. Upon receipt of such notice, the receiving Party
shall return all of the Confidential Information and all copies in its possession to the disclosing Party as soon as is reasonably practical, but in no event shall the receiving Party have fewer than thirty (30) days to return such Confidential
Information to the disclosing Party. In the event that the receiving Party has destroyed any copies, such receiving Party shall confirm the destruction of such copies in the letter accompanying the return of the documents and copies that were not
destroyed. Notwithstanding the foregoing, (i) the receiving Party shall not be obligated to return or destroy any documents created by it that may reflect or refer to Confidential Information, (ii) the receiving Party may create .and
retain an abstract describing the type of Confidential Information that it receives sufficient to document the nature and scope of the Parties’ discussions under this Agreement, (iii) the receiving Party shall not be obligated to return or
destroy any Confidential Information that the receiving Party is retaining pursuant to a document retention hold established in connection with any civil or criminal 
  

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investigations or litigation, in which event the Confidential Information shall be retained by the receiving Party until such time as the document retention hold is no longer in effect, at which
time the Confidential Information shall be returned to the disclosing Party or destroyed as aforesaid, and (iv) to the extent that receiving Party’s computer back-up procedures create copies of the Confidential Information, the receiving
Party may retain such copies in its archival or back-up computer storage for the period the receiving Party normally archives backed-up computer records. Any such documents or abstract so created will be retained subject to this Agreement until they
are destroyed or erased. 
 In the event of any breach or threatened breach by a Party of the terms of this Section 19.13,
the other Party shall be entitled to seek injunctive and other equitable relief and the Party shall not plead in defense thereto that there would be an adequate remedy at law. Such remedy shall be cumulative and in addition to all other remedies
available. The Parties acknowledge that the Confidential Information is valuable and unique and that disclosure in breach of this Section 19.13 may result in irreparable injury to the disclosing Party. 
  

	19.14 	Imaged Agreement. Any original executed copy of this Agreement, any Confirmation or any other Transaction Document may be photocopied and stored on computer
tapes and disks (the “Imaged Agreement”). The Imaged Agreement, if introduced as evidenced on paper in automated facsimile form, and all computer records of the foregoing, if introduced as evidence in printed format, in any
judicial, arbitration, mediation or administrative proceedings, will be admissible as between the Parties to the same extent and under the same conditions as other business records originated and maintained in documentary form. Neither Party shall
object to the admissibility of the Imaged Agreement (or photocopies of the transcription of the Imaged Agreement) on the basis that such were not originated or maintained in documentary form under either the hearsay rule, the best evidence rule or
other rule of evidence. 

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year set forth above. 
  

			
	IDT ENERGY, INC.
		
	By:	 	 
	Name:	 	
	Title:	 	

  

			
	BP ENERGY COMPANY
		
	By:	 	 
	Name:	 	
	Title:	 	

  

			
	BP CORPORATION NORTH AMERICA INC.
		
	By:	 	 
	Name:	 	
	Title:	 	

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 PREFERRED SUPPLIER AGREEMENT SIGNATURE PAGE 

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 Exhibit 1 
 Supply Fees 
 * 

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 Exhibit 3 
 Material Terms of Sale Contract 
 Price and Term: All Sale
Contracts shall specify the price for energy or Natural Gas, as applicable, and the term of the agreement. The term of the Sale Contract binding on IDT may not extend beyond the Planned Term. 
 Payment Provision: Sale Contracts shall require that Customer to make all payments due to the Deposit Account 
 Assignability: Sale Contracts will be assignable by IDT to a lender institution or credit provider, which includes the BP Parties, without the
consent of the Customer. 
 Force Majeure: Sale Contracts shall contain a standard force majeure provision excusing performance due to
acts beyond the reasonable control of the parties. 
 Events of Default: Sale Contracts shall contain a provision which includes
customary grounds for default, including, but not limited to, Customer’s failure to pay invoices. 

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 Schedule 3.1 
 Existing Use of Pipelines and Storage Facilities 

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 Schedule 3.3 
 Permitted Other Transactions 

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 Schedule 5.4 
 ISO Interface Responsibilities 
 BP will serve as the Principal
Account Holder within the NYISO control area on behalf of IDT pursuant to this agreement. In the capacity of these roles for IDT, BP will be responsible for the following ISO/RTO activities: 
 ISO/RTO Communications 
  

	i.	Maintain facilities and personnel required to coordinate operations with the ISO. 

  

	ii.	Serve as the sole authorized communicator with the ISO for bidding, scheduling, tagging and settling transactions related to IDT’s load obligations.

  

	iii.	Serve as the Authorized Security Administrator to access the NYISO MIS applications on behalf of IDT’s load. 

  

	iv.	Comply with the ISO directive (under an emergency condition or otherwise) that may require BP to modify an IDT schedule. 

 Credit and Settlements 
  

	i.	Maintain sufficient credit with the ISO to transact on IDT’s behalf. 

  

	ii.	Timely payment of bona fide ISO invoices applicable to transactions conducted for IDT’s account. 

  

	iii.	Submission of invoices to IDT for all ISO settlement charges, accounting adjustments or resettlements, and credits related to IDT’s load transactions and
obligations, including but not limited to energy, ancillary services, installed Capacity, auction revenue rights, and load related charges, make-whole payments assigned to loads for reliability services, day-ahead market purposes and other such
charges. 

  

	iv.	Submission of invoices to IDT regarding any resettlement of transactions related to IDT’s load obligation pursuant to this Agreement, BP reserves the right to
pass-through the rebilled charges and/or credits to IDT. 

  

	v.	The NYISO settlement system does not allow for multiple settlement accounts associated with a single legal entity. As such, for any settlement charge types that are not
reported to BP by the NYISO at IDT’s Load Asset ID or can not be directly attributed to IDT’s load obligation, BP will pass-through to IDT in a relatively proportionate to IDT’s load obligation. Similarly, BP shall pass any credit
through to IDT in a relatively proportionate amount to IDT’s load obligation. 

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	vi.	If BP receives the ISO short pay due to a market participant default in the ISO in which BP has established stand alone settlement accounts for IDT’s transaction,
BP will completely pass through the same ISO short pay to IDT in accordance with the relevant tariff or ISO rules and procedures. If BP is made whole by the ISO at some future date, then BP will completely pass through the same make whole amount.
The exception to this is in reference to NYISO where a stand alone settlement account will not be utilized. If the NYISO is to short pay BP on an invoice, BP will use commercially reasonable means to mimic the same short pay methodology used by the
ISO for IDT’s transactions. 

  

	vii.	File, but not necessarily initiate, all commercially reasonable billing disputes with the ISO on IDT’s behalf. 

 Regulatory 
  

	i.	IDT is responsible for its own regulatory or legislative monitoring, participation and advocacy to protect its interests. For clarification, BP is not responsible for
communicating any regulatory, market rule, tariff change, NERC issues and standards, or RTO ISO stakeholder meetings or other such committee and working group information to IDT. IDT remains responsible for its own regulatory advocacy and
interpretation. 

  

	ii.	Nothing herein shall limit IDT’s rights to participate as a Market Participant in the ISO/RTO or NERC meeting or any regulatory proceeding to protect its
interests. For clarification, if BP participates in the ISO/RTO or NERC meeting or regulatory meeting, BP shall vote independently to protect its interests without any obligation to coordinate its vote with IDT or its Affiliates.

  

	iii.	IDT will be responsible for any required state, federal or regional reports applicable to its licenses and business interests. For clarification, nothing herein shall
obligate BP, as scheduling entity, to prepare or submit any regulatory or governmental reports including, but not limited to, IDT’s FERC Electronic Quarterly Reporting (EQR), ERCOT PUCT transactions report, or IDT’s Renewable Energy Credit
(REC) reports. 

 IDT, as the Load-Serving Entity underneath a BP ISO Account ID, will be responsible for the following
activities: 
  

	i.	Provide timely load forecast data, demand bids, virtual transactions, bilateral transactions, energy schedules, Capacity requirements, auction revenue right nominations
and bilateral ancillary service transactions with a third party and other such data requirements to BP so that BP is able to meet the ISO’s applicable day- ahead and real-time scheduling deadlines. 

  

	ii.	Maintain the appropriate state licensing requirement as a Retail Energy Provider (REP) or Load-Serving Entity serving retail customers within each of the states in
which BP is providing wholesale power to IDT and is acting as the scheduling agent. 

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	iii.	Remain responsible for reporting IDT’s meter data to the ISO/RTOs either through its own operations or via agreements with the other entities.

  

	iv.	Advanced coordination with BP will be required if IDT has a desire to participate in any of the ISO’s FTR, CRR or TCR auctions. BP will need to ensure the proper
amount of credit has been posted with the respective ISO and the appropriate security rights have been granted to BP as the Scheduling Agent for IDT. 

  

	v.	Prior to enrolling any load into the ISO Demand Response type program or enlisting a Demand Resource in an ICAP or RA auction, IDT will coordinate with BP to ensure the
proper metering and dispatch communication equipment is in place for BP to be compliant with the ISO’s technical requirements of the programs. 

  

	vi.	IDT will timely respond to any data requests or reporting obligations directed to BP from the ISO, NERC or NERC Regional Entity, that is related to IDT’s load
transactions, such as system planning studies, forecasted peak demand, or audit inquires and other necessary information. 

Table of Contents

 CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
  

 Schedule 16.1(c) 
 Required Filings 

Table of Contents

 CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
  

 Schedule 16.1(m) 
 List of Sales Contracts and Purchase Agreements 

Table of Contents

 CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS DOCUMENT BASED UPON A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF OMITTED TEXT IS INDICATED BY AN ASTERISK (*) 
  

 Schedule 16.1(w) 
 Authorized Direct Pay CustomersLicense Agreement

 Exhibit 10.1 
 Confidential Materials omitted and filed separately with the 
 Securities and Exchange Commission. Asterisks denote omissions. 
 EXECUTION VERSION 
 LICENSE AGREEMENT 
 This
Agreement is made and entered into on August 5, 2009 (the “Effective Date”) by and 
 Between 
 DEBIOPHARM S.A., a Swiss corporation having its principal place of business at Forum «après-demain», Chemin Messidor 5-7,
1006 Lausanne, Switzerland (“Debiopharm”), 
 On the one hand, 
 And 
 CURIS, INC., a corporation
established under the laws of the State of Delaware, USA, having its principal place of business at 45 Moulton Street, Cambridge, MA 02138, United States of America (“Curis”), 
 On the other hand; 
 WITNESSETH: 
 WHEREAS, Debiopharm is a pharmaceutical company active in the research and development, the registration
and the commercialization of pharmaceutical products, as well as in the acquisition and granting of licenses and other proprietary rights related to such products; 
 WHEREAS, Curis is a drug development company developing innovative signaling pathway drug technologies to seek to create new medicines, primarily in the field of oncology; 
 WHEREAS, Curis wishes to license out to Debiopharm all the proprietary rights in and to the compound known as “CUDC-305”; 
 WHEREAS, Debiopharm wishes to obtain from Curis a license to such compound known as “CUDC-305” in order to develop, manufacture and
commercialize Products (as hereinafter defined); 
 WHEREAS, both Debiopharm and Curis wish to enter into this Agreement which provides
Debiopharm with an exclusive license to the Compound (as hereinafter defined) to develop and commercialize Products (as hereinafter defined) in the Field of Use (as hereinafter defined) and in the Territory (as hereinafter defined), under the terms
and conditions set forth below; 
 NOW, THEREFORE, in consideration of the foregoing and the covenants and obligations set forth in this
Agreement, Debiopharm and Curis agree as follows: 
  

	1	DEFINITIONS AND INTERPRETATIONS 

 Terms, when used with initial capital letters, shall have the meanings set forth below or at their first use when used in this Agreement: 
  

					
	“Affiliate(s)”:	  	shall mean any corporation or other business entity controlled by, controlling, or under common control with or by Debiopharm or

  

  
 Page 1 of 45 

					
		  	Curis. For this purpose, “control” means direct or indirect beneficial ownership of at least fifty percent (50%) of the voting stock of a corporation or other
business entity.
		
	“Agreement”:	  	shall mean this license agreement.
		
	“API”:	  	shall mean an active pharmaceutical ingredient.
		
	“Backup Compound(s)”:	  	shall mean all Hsp90 Inhibitors [**], as well as their prodrugs and metabolites, and all isomers, esters, salts, hydrates, solvates, and polymorphs
thereof.
		
	“Change of Control Transaction”:	  	shall have the meaning ascribed to this term in paragraph (a) of Article 19.
		
	“Combination Product”:	  	shall mean a Product combining a Compound together with another API.
		
	“Compound”:	  	shall mean CUDC-305 as described in Exhibit 1, any prodrug or metabolite of CUDC-305, any isomer, ester, salt, hydrate, solvate, or polymorph of CUDC-305, including any
Backup Compound.
		
	“Confidential Information”:	  	shall mean any information of a confidential or proprietary nature disclosed by a Party or its Affiliates (the “Disclosing Party”) to the other Party or its
Affiliates (the “Receiving Party”), including, but not limited to, each Party’s or its Affiliates’ invention disclosures, proprietary materials, data, know-how, technologies, trade secrets, and/or manufacturing, marketing,
personnel and other business information and plans (including, without limitation, the opinions and advice of each Party’s respective in-house and outside counsel with respect to intellectual property matters), whether in oral, written, graphic
or electronic form. Information shall not be deemed “Confidential Information” hereunder, and the Receiving Party shall have no obligation with respect to any information that the Receiving Party can demonstrate by competent
evidence:
			
		  	 (i)     
	  	is known by the Receiving Party prior to disclosure by the Disclosing Party, as evidenced by internal records or documentation of the Receiving Party; or
			
		  	(ii)	  	is in the public domain or subsequently enters the public domain without any breach of this Agreement by the Receiving Party; or
			
		  	(iii)	  	is received by the Receiving Party from an independent Third Party with the lawful right to disclose; or
			
		  	(iv)	  	was independently developed by the Receiving Party (or its Affiliates’) employees or contractors without the use of or reference to Confidential Information of the Disclosing
Party, as evidenced by the Receiving Party’s written records.

  

  
 Page 2 of 45 

					
	“Control” or “Controlled”:	  	shall mean, with respect to any information, patent rights or other intellectual property rights, possession by an entity of the ability (whether by ownership, license
or otherwise) to grant access to, to grant use of, or to grant a license or a sublicense of or under such information, patent rights or intellectual property rights.
		
	“CTA”:	  	shall mean a clinical trial application.
		
	“Curis Intellectual Property Rights”:	  	shall mean all Curis Patents and Curis Know-How.
		
	“Curis Know-How”:	  	shall mean any and all technical information, test and development data and results, formulations, processes, ideas, protocols, regulatory files, pre-clinical and
clinical data (including, without limitation, Data) and the like relating to the use or development of the Compound or the Product in the Field of Use, which is conceived, reduced to practice and Controlled by Curis: (a) on or prior to the Effective
Date; (b) during the six- (6-) month period following the Effective Date; (c) [**]; (d) in the course of Curis’ participation on the JSC; (e) in the course of any preclinical studies undertaken by Curis in accordance with Section 3.1.3, and (f)
as the need arises and as may be mutually agreed by the Parties after the Effective Date, during the Term; and which, in each case, is provided to Debiopharm under this Agreement.
		
	“Curis Patent(s)”:	  	shall mean any and all of the patents and patent applications Controlled by Curis or its Affiliates (which, for purposes of this definition, shall be limited to
Affiliates that are controlled by Curis within the meaning of the definition of Affiliate) on the Effective Date and during the Term, that claim the manufacture, use, sale, offer for sale or import of the Compound or the Product as specified in
Exhibit 2, together with any and all patents issued on any such applications as well as any divisional, continuation, continuation-in-part to the extent that claims are directed toward the subject matter specifically described in patent applications
listed in Exhibit 2, substitution applications, re-issue, re-examination, renewal and extended patents (including supplementary protection certificates (SPC)) of any of the foregoing. Curis Patents shall exclude the Joint Patents.
		
	“Data”:	  	shall mean any and all scientific and research data, technical data, test and development data, pre-clinical and clinical data (including pharmacological, biological,
chemical, biochemical, toxicological, pre-clinical and clinical test data, analytical and quality control data, stability data, results of studies, patient lists), formulations, processes, protocols, regulatory files and the like which are developed
by either Party in connection with the Compound or the Product.

  

  
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	“Debiopharm Intellectual Property Rights”:	  	shall mean all Debiopharm Patents and Debiopharm Know-How.
		
	“Debiopharm Know-How”:	  	shall mean any and all technical information, test and development data and results, formulations, processes, ideas, protocols, regulatory files, preclinical and
clinical data (including, without limitation, Data) and the like relating to the use or development of the Compound or the Product, which is secret, non-patented and which is conceived or reduced to practice by Debiopharm (or third parties which
will have assigned such know-how to Debiopharm) during the Term.
		
	“Debiopharm Patent(s)”:	  	shall mean any and all patents and patent applications for any invention relating to the use of the Compound, the Product, or any process which uses the Compound or the
Product, conceived and reduced to practice by Debiopharm (or third parties which will have assigned their rights to Debiopharm) during the Term, that claim the manufacture, use, sale, offer for sale or import of the Compound or the Product, together
with any and all patents issued on any such applications as well as any divisional, continuation, continuation-in-part, substitution applications, re-issue, re-examination, renewal and extended patents (including supplementary protection
certificates (SPC)) of any of the foregoing.
		
	“Development Plan”:	  	shall mean plans for development of Products as outlined in Exhibit 3.
		
	“EMEA”:	  	shall mean the European Medicines Agency, or any successor agency thereto.
		
	“FDA”:	  	shall mean the United States Food and Drug Administration, or a successor federal agency thereto.
		
	“Field of Use”:	  	shall mean the use of Products in all human and veterinary fields.
		
	“First Commercial Sale”:	  	shall mean the first commercial sale by Debiopharm, its Affiliates and/or Sublicensees to a Third Party of a Product for value in any country in the Territory following
receipt of approval to market such Product from the relevant Regulatory Authority in the applicable country.
		
	“Generic Product”:	  	shall mean, with respect to a Product in a given country, a product being sold by Third Party(ies) in such country that (a) has received marketing approval from the
applicable Regulatory Authority in such country, (b) contains the same API as the Compound contained in such Product, and (c) is not covered by a valid Curis Patent or Joint Patent in such country.

  

  
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	“Hsp90 Inhibitor”:	  	shall mean a compound that binds to, and selectively and specifically inhibits, Hsp90.
		
	“IND”:	  	shall mean an “Investigational New Drug” application – i.e., an application filed with the FDA and any application filed with any other Regulatory
Authorities to obtain permission to commence human clinical trials for a pharmaceutical product in a country or group of countries.
		
	“IND/CTA Approval Milestone”:	  	shall have the meaning ascribed to this term in Section 6.3.
		
	“IND/CTA Filing Conditions”:	  	shall have the meaning ascribed to this term in Section 3.2.5(a).
		
	“IND/CTA Filing Deadline”:	  	shall have the meaning ascribed to this term in Section 3.2.5(a).
		
	“Indication”:	  	means any indication for which (a) a Product is developed pursuant to an IND or CTA (or if no such filing is required, pursuant to the applicable clinical trial
protocol), (b) an NDA for a Product is submitted, or (c) an NDA for a Product is approved by a Regulatory Authority. Any distinct Indication must include new clinical trial data. Any change in tumor type is considered as a new Indication. For
instance, the passage from ovarian cancer to breast cancer is considered as a new Indication. However a change in the line of treatment or a passage from metastatic to adjuvant setting within the same tumor type will not be considered as a
new Indication. For instance, the indication metastatic Colo-Rectal Cancer (CRC) replacing second line metastatic CRC is not a new Indication. Also the addition of adjuvant treatment of CRC is not considered as a new Indication in this example.
Variations such as change in regimen or combination with other anticancer drugs or change in formulation within the same tumor type are also not considered as a new Indication.
		
	“Inventions”:	  	shall have the meaning ascribed to this term in Section 7.1.2.
		
	“Joint Inventions”:	  	shall have the meaning ascribed to this term in Section 7.1.2.
		
	“Joint Patents”:	  	shall mean any and all patents and patent applications claiming any Joint Invention, together with any and all patents issued on any such applications as well as any
divisional, continuation, continuation-in-part, substitution applications, re-issue, re-examination, renewal and extended patents (including supplementary protection certificates (SPC)) of any of the foregoing.
		
	“JSC”:	  	shall mean the joint steering committee created by the Parties according to Section 4.1.

  

  
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	“Major Market(s)”:	  	shall mean any of the following countries or groups of countries:
			
		  	(i)	  	the United States of America;
			
		  	(ii)	  	Canada;
			
		  	(iii)	  	France, Germany, Italy, Spain, and the United Kingdom (each, a “Major European Market”); and
			
		  	(iv)	  	Japan or China (each, a “Major Asian Market”).
		
	“Milestone(s)”:	  	shall have the meaning ascribed to this term in Section 6.3.
		
	“NDA”:	  	shall mean a “New Drug Application” (as more fully defined in 21 C.F.R. 314.5 et seq.) filed with the FDA or the equivalent application filed with any
other Regulatory Authority to obtain marketing approval for a Product in a country or jurisdiction in the Territory.
		
	“Net Sales”:	  	shall mean, with respect to a Product, the gross amounts billed or invoiced either (a) by Debiopharm or (b) its Affiliates, in each case, for sales of Products to Third
Parties (excluding sales of Products to Sublicensees for resale), less the following items, as allocable to such Products (if not previously deducted in calculating the amount invoiced):
			
		  	(i)	  	deductions for returns (including allowances actually given for spoiled, damaged, out-dated, rejected, returned Product sold, withdrawals and recalls),
			
		  	(ii)	  	rebates (price reductions, including Medicaid, rebates to social and welfare systems and similar types of rebates e.g. chargebacks, government mandated rebates) actually allowed or
paid,
			
		  	(iii)	  	volume (quantity) discounts or other discounts granted at the time of invoicing, and
			
		  	(iv)	  	value added or sales taxes and other taxes directly linked to and included in the gross sales amount,
		
		  	it being specified that disposal of Product for, or use of Product in, clinical or pre-clinical trials, or distribution of Product as free samples (such samples to be in
quantities common in the industry for this type of pharmaceutical products) shall not give rise to any deemed sale under this definition.
		
		  	No deductions shall be made for commissions to any person on Debiopharm’s or an Affiliate’s payroll or for the cost of collection.

  

  
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		  	For purposes of calculating Net Sales, if a Combination Product is sold by Debiopharm or its Affiliates, the Net Sales of such Combination Product shall be determined by
multiplying the Net Sales (as defined above in this definition of “Net Sales”) of the Combination Product by the fraction, A/(A+B) where A is the weighted (by sales volume) average sale price of the Product when sold separately in finished
form and B is the weighted (by sales volume) average sale price of the other product(s) sold separately in finished form. In the event that such weighted average sale price cannot be determined for both the Product and the other product(s) in
combination, Net Sales for purposes of determining royalty payments shall be agreed in good faith by the Parties based on the relative value contributed by each component.
		
	“Party”:	  	shall mean either Debiopharm or Curis, as the context requires, or both Debiopharm and Curis when used in the plural form “Parties”.
		
	“Patent(s)”:	  	shall mean the Curis Patents, Debiopharm Patents and/or Joint Patents.
		
	“Phase I Study”:	  	shall mean a clinical study consistent with U.S. 21 CFR paragraph 312.21 (a) or any foreign counterpart of it. In oncology development, any possible expansion of a Phase
I Study in specific indications under a phase I protocol, which might follow the dose escalation phase, is considered as the same Phase I Study.
		
	“Phase II Study”:	  	shall mean a clinical study consistent with U.S. 21 CFR paragraph 312.21 (b) or any foreign counterpart of it.
		
	“Phase III Study”:	  	shall mean those tests and studies in humans as described in the U.S. 21 CFR paragraph 312.21 (c) or any foreign counterpart of it.
		
	“Product(s)”:	  	shall mean any product containing the Compound, whether or not as the sole active ingredient, in any dosage form and formulation and for all present and future
Indications.
		
	“Reasonable Commercial Efforts”:	  	shall mean the efforts required in order to carry out a task or objective in a diligent and sustained manner without undue interruption, pause or delay, which level is
at least commensurate with the level of efforts that a pharmaceutical company would devote to a product of similar potential and having similar commercial and scientific advantages and disadvantages as compared to the Product hereunder. Reasonable
Commercial Efforts requires (without limitation) that the Party exerting such efforts (i) promptly assign responsibility for its obligations to

  

  
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		  	specific employee(s) or contractor(s) who are held accountable for progress and monitor such progress, on an ongoing basis, (ii) set and continue to seek to achieve
specific and meaningful objectives for carrying out such obligations, and (iii) consistently make and implement decisions and allocate resources designed to advance progress with respect to such objectives, in each case in a commercially reasonable
manner.
		
	“Regulatory Authority”:	  	means the relevant governmental or other authority responsible in any particular jurisdiction for regulation, licensing, evaluation and supervision of Products in the
Field of Use, including without limitation the FDA and the EMEA.
		
	“Royalties”:	  	shall mean the royalties to be paid by Debiopharm to Curis (a) on the basis of Net Sales or (b) on the basis of Sublicensee Royalties, as applicable.
		
	“Royalty Term”:	  	shall mean, on a country-by-country basis, the period beginning upon the First Commercial Sale of a Product in a country of the Territory and ending upon the later of:
(a) expiration of the last-to-expire valid claim of the Curis Patents and the Joint Patents, which valid claim covers the composition of matter, or any method of manufacture or use, of the Product (or the Compound contained therein) in such country;
and (b) the tenth (10th) anniversary of the First Commercial Sale of the Product in such country.
		
	“Sublicensee(s)”:	  	shall mean any Third Party to whom Debiopharm, or any of its Affiliates, has sublicensed any of Debiopharm’s rights under the license granted to Debiopharm pursuant
to Section 2.1.
		
	“Sublicensee Royalties”:	  	shall mean all royalties paid by any Sublicensee to Debiopharm or any of its Affiliates with respect to sales of Products by such Sublicensee or its further
sublicensees.
		
	“Sublicensing Payments”:	  	shall mean consideration in any form received by Debiopharm or any of its Affiliates in connection with a grant to any Third Party(ies) of a sublicense or other right,
license, privilege or immunity to develop, have developed, make, have made, use, sell, have sold, distribute, import or export Products, but excluding Sublicensee Royalties. Sublicensing Payments shall include, without limitation:
		
		  	(i) any upfront or license signing fee;
		
		  	(ii) any license maintenance fee;
		
		  	(iii) any milestone payments (including, without limitation development, regulatory and sales-based milestone payments);
		
		  	(iv) the portion of any minimum royalty payment received by Debiopharm or any of its Affiliates in excess of Sublicensee Royalties received;

  

  
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		  	(v) if a Sublicensee issues equity or debt securities to Debiopharm or its Affiliate in connection with a sublicense grant, the fair market value of such securities
issued to Debiopharm or its Affiliate (such fair market value to be determined by agreement of Debiopharm and Curis or by an independent appraiser mutually agreeable to Debiopharm and Curis), net of any cash consideration paid by Debiopharm or its
Affiliate for such securities;
		
		  	(vi) any distribution or joint marketing fee;
		
		  	(vii) research and development funding in excess of Debiopharm’s or its Affiliates’ actual cost of performing such research and development (calculated on a
fully-burdened basis in accordance with Debiopharm’s or its Affiliate’s project- or activity-based accounting practices, as applied consistently throughout its accounting system); and
		
		  	(viii) if Debiopharm or its Affiliate sells equity or debt securities to a Sublicensee in connection with a sublicense grant, any consideration received by Debiopharm or
its Affiliate for such securities to the extent such consideration exceeds the fair market value of such securities (such fair market value to be determined by agreement of Debiopharm and Curis or by an independent appraiser mutually agreeable to
Debiopharm and Curis).
		
	“Technology Transfer Plan”:	  	shall have the meaning ascribed to this term in Section 3.1.1.
		
	“Term”:	  	shall have the meaning ascribed to this term in Section 11.1.
		
	“Territory”:	  	shall mean the entire world.
		
	“Third Party”:	  	shall mean any entity other than Debiopharm or Curis or an Affiliate of Debiopharm or Curis.
		
	“Third Party Intellectual Property Rights”:	  	shall have the meaning ascribed to this term in Section 7.1.2.
		
	“Third Party Other Patent Licenses”:	  	shall have the meaning ascribed to this term in Sections 6.5.2 and 6.5.3.
		
	“Third Party Patent Licenses”:	  	shall have the meaning ascribed to this term in Sections 6.5.2 and 6.5.3.
		
	“Up-front Fee”:	  	shall have the meaning ascribed to this term in Section 6.2.

  

  
 Page 9 of 45 

	2	LICENSE 

  

	2.1	Subject to the terms and conditions of this Agreement, Curis grants to Debiopharm a sole and exclusive license (even as to Curis) in and to the Compound and the Product
under the Curis Intellectual Property Rights and Curis’ interest in the Joint Patents, to develop, have developed, use, have used, sell, have sold, offer for sale, make, have made, manufacture, have manufactured, register, have registered,
commercialize and have commercialized the Compound and Products, in any Indication in the Field of Use, in the Territory. For avoidance of doubt, Curis does not grant to Debiopharm any right or license with respect to any API other than the
Compound. 

  

	2.2	The license granted to Debiopharm by Curis under Section 2.1 includes the right for Debiopharm to grant sublicenses to its Affiliates and to Third Parties for the
development, manufacture, sale and/or commercialization of the Compound and the Product. All sublicenses granted by Debiopharm shall be subject to the terms and conditions of this Agreement, and Debiopharm shall enter into a written sublicense
agreement with each Sublicensee which will contain terms and conditions fully consistent with the terms and conditions contained in this Agreement. Debiopharm shall provide to Curis a true and complete copy of each Commercial Sublicense Agreement
entered into by Debiopharm or any of its Affiliates and any Sublicensee, and of each amendment to any such Commercial Sublicense Agreement, in each case, within thirty (30) days after execution of such Commercial Sublicense Agreement or
amendment, provided that Debiopharm may redact from such copy any sensitive or proprietary information that is not necessary to ascertain Debiopharm’s, its Affiliate’s or a Sublicensee’s compliance with the terms and conditions of
this Agreement (including, without limitation, Debiopharm’s payment and reporting obligations hereunder). For the purpose of this Section 2.2, the term “Commercial Sublicense Agreement” shall mean any agreement
executed by Debiopharm or any of its Affiliates under which any of Debiopharm’s rights under the license granted to Debiopharm pursuant to Section 2.1 are sublicensed; provided, however, that the term Commercial Sublicense Agreement
shall exclude any agreement between Debiopharm or its Affiliate and a Third Party service provider under which a sublicense is granted to such Third Party for the sole purpose of enabling such Third Party to perform contract services on behalf of
Debiopharm or its Affiliate (e.g., contract research or development organizations, clinical sites performing clinical trials, universities and scientific institutes, and contract manufacturing organizations). In addition, Debiopharm shall
notify Curis in writing of the termination of any Commercial Sublicense Agreement within thirty (30) days after such termination. If Debiopharm determines that there is a reasonable likelihood of its execution of a Commercial Sublicense
Agreement or an amendment to, or termination of, an existing Commercial Sublicense Agreement, Debiopharm shall use reasonable efforts to provide notice thereof to Curis, which notice shall be provided solely for Curis’ information and planning
purposes. No sublicense hereunder shall limit or affect the obligations of Debiopharm under this Agreement, and Debiopharm shall remain fully responsible for each Affiliate’s or Sublicensee’s compliance with the applicable terms and
conditions of this Agreement. 

  

	2.3	Except as expressly provided in this Agreement, no license or other right is or shall be created or granted hereunder by implication, estoppel or otherwise.

  

  
 Page 10 of 45 

	3	DEVELOPMENT PLAN 

  

	3.1.	Obligations of Curis 

  

	3.1.1	As soon as possible after the Effective Date, Curis shall use its Reasonable Commercial Efforts to transfer, at no costs to Debiopharm, all Curis Know-How that is
necessary for Debiopharm to continue the development of the Compound and the Products in accordance with the Development Plan. Without limiting the generality of the foregoing, Curis shall use Reasonable Commercial Efforts to transfer the
information and materials set forth in the technology transfer plan attached hereto as Exhibit 4 (the “Technology Transfer Plan”) on the timeline set forth in the Technology Transfer Plan. Curis shall supply Debiopharm at
costs, as indicated in this Section 3.1.1, as soon as possible, but in any event within thirty (30) days, with the amount of Compound [**] for use in clinical studies that is requested by Debiopharm. Curis has an available stock of
Compound (GMP quality) of [**]. For the avoidance of doubt, Debiopharm shall not be under any obligation to purchase any quantity of the available stock of Compound held by Curis. Curis shall also provide compound stability data to Debiopharm as
such data is received [**]. Stability data developed prior to the Effective Date shall be communicated to Debiopharm free of charge, and Curis shall invoice Debiopharm quarterly at cost for stability data developed during the Term. In addition,
Curis shall provide samples of Compound intermediate and non-GLP Compound to Debiopharm as requested by Debiopharm during the first six (6) months following the Effective Date, provided such Compound intermediate or non-GLP Compound are
available. Curis will invoice Debiopharm for such Compound intermediate and/or non-GLP Compound at an amount equal to its cost. Curis shall have no obligation to procure or supply any quantities of Compound [**] beyond the quantities specified in
the preceding sentence. Curis will invoice Debiopharm for Compound [**] requested by Debiopharm and shipped to Debiopharm by Curis. Payment shall be made [**]. Debiopharm shall review such data as is needed [**] thereof. Subject to Debiopharm’s
right to [**] of such Compound [**] as set forth above, Debiopharm shall make payment on Curis’ invoices under this Section 3.1.1 within forty-five (45) days of invoice. 

  

	3.1.2	At no cost to Debiopharm, Curis shall provide a reasonable amount of technical, scientific and intellectual property support to the Development Plan, as requested by
Debiopharm, during the six- (6-) month period beginning on the Effective Date. 

  

	3.1.3	During the period beginning on the Effective Date and ending upon filing of the first IND or CTA for the Compound or the Product in a Major Market, and if requested in
writing by Debiopharm, Curis shall perform the preclinical study(ies) as set forth in the Technology Transfer Plan and shall engage contract service providers and/or outside consultants as reasonably necessary in connection with such studies.
Debiopharm shall reimburse Curis for the cost of these studies (including fees and costs paid to such service providers and consultants). Curis shall provide an original invoice for such costs to Debiopharm, who shall pay within forty-five
(45) days of receipt of such invoice. 

  

	3.2	Obligations of Debiopharm 

  

	3.2.1	 Debiopharm shall undertake Reasonable Commercial Efforts to develop, register and commercialize the Product in the Field of Use in the Major Markets
and in such other markets as Debiopharm deems commercially reasonable. From and after the Effective Date, Debiopharm shall be solely responsible for all the costs relating to the

  

  
 Page 11 of 45 

	 	 
development, registration and commercialization of the Product in the Field of Use. Debiopharm shall solely assume the managing and the financing of the Development Plan, with the objective of
verifying the safety, potency and efficacy of the Product and, if the results of clinical development are positive, filing applications for NDA approval in an expeditious manner, within the limits of the demands of the Regulatory Authorities and
consistent with Reasonable Commercial Efforts, as more fully described below in this Section 3.2. Debiopharm shall retain final decision making authority on all development, commercialization, marketing, manufacturing and regulatory matters
relating to the Product; provided, however, that Debiopharm shall (i) provide Curis the opportunity to review and comment on protocols for clinical trials of which Debiopharm or its Affiliate will be the sponsor and proposed labeling for
the Product in each country of the Territory, in each case, reasonably in advance of submission by Debiopharm or any of its Affiliates (but, for the avoidance of doubt, not Sublicensees) to the applicable Regulatory Authority of any such clinical
trial protocol or any regulatory filing regarding Product labeling, and (ii) consider Curis’s comments with respect to such clinical trial protocols and Product labeling in good faith. 

  

	3.2.2	Debiopharm shall conduct the Development Plan in accordance with all applicable laws, rules and regulations, and current good manufacturing practice (cGMP), current
good laboratory practice (cGLP) and current good clinical practice (cGCP), where applicable. 

  

	3.2.3	The Development Plan will be updated from time to time in accordance herewith and such updates shall be attached hereto as Exhibit 3. The Development Plan indicates in
reasonable details Debiopharm’s plans for the development of Product in the Field of Use, including regulatory and registration strategy consistent with Reasonable Commercial Efforts. Without limiting the generality of any of the foregoing
obligations in this Section 3.2.3, Debiopharm shall use Reasonable Commercial Efforts to implement the Development Plan within the timelines described therein. Debiopharm may reasonably revise and amend the Development Plan from time to time
upon as much advance notice to Curis as is practicable under the circumstances, so long as such amended Development Plan meets the criteria described above but in particular in the event the assumptions described therein are not met; provided,
however, that at Curis’ request, the Parties shall promptly convene a special JSC meeting at which Debiopharm will present its rationale for such amendment and, if Curis in good faith believes such amendment is inadvisable for scientific,
clinical or regulatory reasons, Curis may present its position to Debiopharm, which Debiopharm agrees to consider in good faith. Notwithstanding any of the foregoing, nothing in this Agreement shall be construed as a representation or warranty by
Debiopharm as to a successful outcome of the development of the Product and/or issuance of regulatory approvals and/or commercialization in any country. 

  

	3.2.4	If at any time Debiopharm definitively and formally suspends its research or development efforts for the Product, or definitively and formally makes an internal
determination to suspend research and development of the Product, for a period exceeding sixty (60) days, Debiopharm shall notify Curis giving reasons and a statement of its intended actions. 

  

	3.2.5	(a) Subject to [**] (the preceding clauses (i) through (iii), collectively, the “IND/CTA Filing Conditions”), Debiopharm shall file an IND
or CTA for the Compound or the Product in a Major Market by the date that is [**] months after delivery by Curis of all of the aforementioned items (the “IND/CTA Filing Deadline”), unless Debiopharm can demonstrate that
extending the date to [**] months after such delivery is reasonable and appropriate as a result of circumstances beyond Debiopharm’s reasonable control. 

  

  
 Page 12 of 45 

 (b) If the IND/CTA Filing Conditions are met and Debiopharm fails to file an IND or CTA in a
Major Market on or before the applicable IND/CTA Filing Deadline (other than for reasons beyond the reasonable control of Debiopharm, such as the requirements of the applicable Regulatory Authority), Curis may terminate this Agreement in accordance
with Section 12.3. 
 (c) In any event, Debiopharm shall use Reasonable Commercial Efforts to file an IND or CTA in a Major
Market as promptly as practicable after the Effective Date. Curis acknowledges that the approval (either written or tacit) of any Regulatory Authority of any such IND or CTA is not within Debiopharm’s control. 
  

	3.2.6	In addition to its obligation under Section 3.2.5, Debiopharm shall be obligated to make Reasonable Commercial Efforts to develop itself or through Affiliates,
subcontractors and/or Sublicensees at least one (1) Compound. Factors to consider as Reasonable Commercial Efforts shall be as follows: [**]. If Curis considers that Debiopharm has failed to exercise Reasonable Commercial Efforts, then Curis
shall notify Debiopharm in writing within thirty (30) days of appearance of such potential failure thereof stating in reasonable detail the particular alleged failure. 

 (a) If Debiopharm disagrees with Curis’s claim that Debiopharm has failed to exercise Reasonable Commercial Efforts, Debiopharm shall so
notify Curis in writing within thirty (30) days after receipt of Curis’s notice, in which event the Parties shall promptly refer the matter to a Third Party expert in drug development, completely unaffiliated and independent of the Parties
and jointly selected by the Parties, to determine whether a failure by Debiopharm to use Reasonable Commercial Efforts occurred, or if the related problem was due to some other cause. Neither Party shall unreasonably withhold or delay its approval
of such expert. The Parties shall initially share equally the fees and costs of such expert, but promptly after such expert makes a determination regarding the matter, the non-prevailing Party shall reimburse the prevailing Party for the share of
such fees and costs borne by the prevailing Party. Should it be determined by the expert that such failure resulted from Debiopharm’s failure to use Reasonable Commercial Efforts to perform its obligations and tasks assigned to it under the
Development Plan, then the expert shall determine what corrective action by Debiopharm would best meet the standard of Reasonable Commercial Efforts and a timeframe for the completion of such corrective action by Debiopharm. The determination of
such expert shall be final and binding on the Parties. 
 (b) If Debiopharm does not correct such alleged failure either:
(i) within ninety (90) days after notice of such alleged failure from Curis; or (ii) if Debiopharm disputes Curis’s allegation of failure to use Reasonable Commercial Efforts in accordance with the preceding paragraph (a), within
the period specified by the expert; then, in each case, Curis shall have the right to terminate this Agreement in accordance with Section 12.4. 
  

	3.2.7	Debiopharm shall maintain complete and accurate records of all work, including research, development, clinical, manufacturing and commercialization activities with
respect to the Product conducted by Debiopharm under this Agreement, together with all results, data and developments made or generated in connection with any of the foregoing. Such records shall fully and properly reflect all work done and results
achieved in the performance of this Agreement in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes. 

  

  
 Page 13 of 45 

	3.2.8	During the Term, Debiopharm shall keep Curis regularly informed in reasonable detail regarding Debiopharm’s worldwide Product development. The detailed minutes of
the JSC shall constitute the written progress report summarizing the status of the Product development, clinical trial progress, regulatory approval and commercialization. In addition, throughout the Term, Debiopharm shall notify Curis promptly of
the occurrence of the following by a Product: (i) initiation of any Phase II Study in a Major Market; (ii) initiation of any Phase III Study in a Major Market; (iii) NDA filing in any Major Market; (iv) NDA approval in any Major
Market; and (v) First Commercial Sale in any Major Market. Debiopharm shall also respond to reasonable (i.e., not unduly frequent or burdensome) informal requests from Curis for additional information regarding the development of the
Product from time to time. 

  

	3.2.9	Curis agrees that the results of the Development Plan cannot be accurately predicted, that Debiopharm’s obligation with respect to the Development Plan is not an
obligation to obtain a particular result and that Debiopharm does not warrant or guarantee that the Development Plan will yield any useful or anticipated results. 

  

	4	JOINT STEERING COMMITTEE 

  

	4.1	The JSC shall be comprised of a minimum of four (4) committee members, which shall consist of two (2) representatives nominated by each Party. Representatives
will include persons having knowledge in the areas of responsibility of the JSC. The Parties may mutually agree to change the total number of representatives on the JSC, provided that the Parties always have an equal number of representatives. Each
Party may replace any of its JSC representatives at any time upon written notice to the other Party. The JSC may invite non-members to participate in the discussions and meetings of the JSC, including experts bound by appropriate confidentiality
obligations. The JSC shall continue to exist and meet during the Term or until the Parties mutually agree that it should disband. Each Party shall be responsible for all travel and related costs for such Party’s representatives and guests to
attend meetings of, and otherwise participate on, the JSC. 

  

	4.2	The JSC shall meet at least [**] during the first year of the Term and [**] thereafter at times established by the Parties. Each Party shall also have the right to
request additional meetings of the JSC for good reason. Meetings will be in-person, at either of the Parties’ offices or be held by videoconference or teleconference. In the event that a JSC member of a Party cannot attend a meeting, such Party
shall have the right to nominate another representative of that Party to attend the meeting. 

  

	4.3	Throughout the Term, the JSC shall function to facilitate the collaboration and relationship of the Parties under this Agreement, and facilitate the communication and
exchange of information related to research and development of Products. In addition, for so long as the JSC is in existence, Curis shall provide reasonable technical and scientific support to the Development Plan through its participation on the
JSC. 

  

	4.4	 The JSC does not have any authority beyond the matters set forth above in this Article 4, and cannot in any way amend or modify the terms or provisions
of this Agreement, either directly or indirectly through changes to the Development Plan. Debiopharm shall have

  

  
 Page 14 of 45 

	 	 
the sole and final right to take decisions with regard to the development of the Product, including “Go” and “No Go” decisions, which decisions shall be made in good faith and
consistent with the objectives and intentions of this Agreement. 

  

	4.5	Debiopharm shall circulate a draft of the minutes of each meeting to all members of the JSC for comments within fifteen (15) days after such meeting. Such minutes
shall summarize the status of the Product development, clinical trial progress, regulatory approval and commercialization and shall provide a description, in reasonable detail, of the discussions at the meeting, a list of any actions or
determinations approved by the JSC at such meeting, and a description of any issues within the JSC that were not resolved at such meeting. Curis shall promptly provide to Debiopharm any comments Curis may have regarding the draft minutes, and the
Parties shall discuss the same in good faith and use all reasonable efforts to finalize the minutes no later than thirty (30) days after such JSC meeting. All final JSC minutes must be signed by both Parties. 

  

	5	MANUFACTURE, RELEASE AND SUPPLY OF THE PRODUCT 

  

	5.1	Debiopharm shall have the exclusive right (even as to Curis) to manufacture, or have manufactured the Compound and the Product according to the terms and conditions of
this Agreement. Debiopharm will, at its own discretion, execute manufacturing and supply agreements with contractors and determine the sites for the manufacture, release and supply of the Compound and the Product. 

  

	6	CONSIDERATION 

  

	6.1	As consideration for the exclusive license rights provided in Section 2.1, Debiopharm shall pay to Curis the amounts set forth in this Article 6.

  

	6.2	Up-front Fee 

 Debiopharm
shall pay a non-refundable up-front fee of Two Million United States Dollars (US$2,000,000) (the “Up-front Fee”). Upon signature of this Agreement, Curis shall provide an original invoice for the Up-front Fee to Debiopharm,
who shall pay within thirty (30) days of receipt of such invoice, provided that all documents listed in section (a)(i) of the Technology Transfer Plan have been delivered to Debiopharm by Curis. 
  

	6.3	Milestones 

 Debiopharm
shall pay the non-refundable milestones set forth in this Section 6.3 (“Milestone(s)”), for each of the following milestone events, whether such milestone event is achieved by Debiopharm, its Affiliates, its Sublicensees
or any Third Party acting on behalf of Debiopharm, its Affiliates or its Sublicensees. Milestones shall be paid only once regardless of how many times a Product achieves the corresponding milestone event, and no payment shall be due for any
milestone event which is not achieved, except as provided in the last sentence of this Section 6.3. 
  

  
 Page 15 of 45 

			
	  	  	 Payment to Curis
 in United
States
Dollars

	  
 Early Milestones
  
	  	 
	  
 Upon the first approval (either written or tacit) by a Regulatory Authority in a Major Market for an open IND or CTA application permitting the initiation of
human clinical trials (the “IND/CTA Approval Milestone”):
	  	US$[**]
	  
 Upon the administration of the 5th patient in the 1st Phase I Study, anywhere in the Territory:
	  	US$[**]
	  
 Advanced
Milestones
  
	  	 
	  
 Upon the administration of the 5th patient in the 1st Phase II Study in the 1st Indication, anywhere
in the Territory:
	  	US$[**]
	  
 Upon the
administration of the 5th patient in the 1st Phase II Study in the 2nd Indication, anywhere in the Territory:
	  	US$[**]
	  
 Upon the administration of the 5th patient in the 1st Phase II Study in the 3rd Indication, anywhere
in the Territory:
	  	US$[**]
	  
 Upon the
administration of the 5th patient in the 1st Phase III Study in the 1st Indication, anywhere in the Territory:
	  	US$[**]
	  
 Upon the administration of the 5th patient in the 1st Phase III Study in the 2nd Indication, anywhere
in the Territory:
	  	US$[**]
	  
 Upon the
administration of the 5th patient in the 1st Phase III Study in the 3rd Indication, anywhere in the Territory:
	  	US$[**]
	  
 Acceptance of NDA by the FDA:
	  	US$[**]
	  
 Acceptance of
NDA in the first Major European Market:
	  	US$[**]
	  
 Acceptance of NDA in the first Major Asian Market:
	  	US$[**]
	  
 First marketing
approval in the United States of America:
	  	US$[**]
	  
 First marketing approval in the first Major European Market:
	  	US$[**]
	  
 First marketing
approval in the first Major Asian Market:
  
	  	 US$[**]
  

 Debiopharm shall provide Curis with written notice within ten (10) working days
of the occurrence of any of the foregoing milestone events and the relevant Milestone is payable by Debiopharm to Curis within thirty (30) days of receipt of a corresponding invoice issued by Curis. If Debiopharm determines that there is a
reasonable likelihood of a particular Milestone being achieved on or about a particular date, Debiopharm shall

  

  
 Page 16 of 45 

 
use reasonable efforts to provide advance notice thereof to Curis, which notice shall be provided solely for Curis’ planning purposes and shall not be construed as a representation, warranty
or covenant by Debiopharm that such Milestone will occur when anticipated or at all. Furthermore, in the event that a given milestone event is realized and becomes payable but any milestone event(s) that constitutes a prior step was never realized
and was never paid to Curis, such prior milestone event(s) shall automatically be deemed to have occurred and become due and payable together with such occurring milestone event. 
  

	6.4	Credit Against Sublicensing Payments 

 The Milestones shall be credited towards the sharing of the Sublicensing Payments due by Debiopharm to Curis in accordance with Section 6.5.1, but only if and to the extent that, at the time that
such Sublicensing Payment(s) is (are) received by Debiopharm and such sharing of Sublicensing Payment(s) is payable to Curis, the aggregate share of Sublicensing Payments actually payable to Curis exceeds the aggregate of the Milestones actually
paid to Curis in accordance with Section 6.3. 
 For avoidance of doubt, Milestones received by Curis from Debiopharm are
never creditable against Royalties outlined in Sections 6.5.2 and 6.5.3. 
  

	6.5	Revenue Sharing 

  

	6.5.1	Sublicensing Payments 

 Debiopharm shall pay to Curis [**] percent ([**]%) of all Sublicensing Payments received by Debiopharm and its Affiliates from Sublicensees subject to the credits made in accordance with Section 6.4. Such payments shall be made to
Curis within forty-five (45) days as of receipt by Debiopharm of the related Sublicensing Payments. 
  

	6.5.2	Royalties on Sublicensee Royalties 

 Debiopharm shall pay Curis Royalties on the Sublicensee Royalties Debiopharm and its Affiliates receive from Sublicensees during the applicable Royalty Term for each country as follows: 
  

			
	Annual Net Sales by Sublicensees in the Territory
	  	 Royalties
(to be paid
 by Debiopharm)

	Annual Net Sales by Sublicensees below US$[**]:	  	  
 [**]% of Sublicensee Royalties received

	Annual Net Sales of Sublicensees between US$[**] and
US$[**]:	  	  
 [**]% of Sublicensee Royalties received

	Annual Net Sales of Sublicensees above
US$[**]:	  	  
 [**]% of Sublicensee Royalties received

 Royalties shall be payable on a country-by-country basis until expiration of the
applicable Royalty Term for each country. 
  

  
 Page 17 of 45 

	 	(a)	Third Party Patents. 

 (i) If Debiopharm reasonably determines, upon the advice of outside patent counsel, that it must obtain one or more licenses under issued patents of Third Parties that, in the absence of such license(s), would be infringed by the
development, manufacture, use, sale or import of the Compound per se contained in a Product in a country (“Third Party Patent Licenses”), then the royalties actually paid by Debiopharm or its Affiliate under such Third Party
Patent Licenses in such country shall be deducted from the Royalties due to Curis with respect to Sublicensee Royalties in such country; provided that in no event shall any such Royalties due to Curis with respect to such country be reduced by more
than [**] percent ([**]%) as a result of such deductions; and provided, further, that no such deduction shall be available to Debiopharm with respect to royalties paid under such Third Party Patent Licenses to the extent that the Sublicensee
is obligated (A) to reimburse Debiopharm or its Affiliates for such royalties or (B) to pay such royalties directly to the applicable Third Party(ies) under such Third Party Patent Licenses – i.e., Debiopharm or its Affiliate
shall not be entitled to deduct such Third Party royalties against Royalties due Curis to the extent that Debiopharm or its Affiliate is not liable for, or Debiopharm or its Affiliate recovers, or has the right to recover, such Third Party royalties
from a Sublicensee. 
 (ii) If Debiopharm reasonably determines to secure a license from a Third Party other
than for the Compound per se (“Third Party Other Patent Licenses”), then [**] percent ([**]%) of the royalties actually paid by Debiopharm or its Affiliate under such Third Party Other Patent Licenses in such country
shall be deducted from the Royalties due to Curis with respect to Sublicensee Royalties in such country; provided that in no event shall any Royalties due to Curis with respect to such country be reduced by more than [**] percent ([**]%) as a result
of such deductions; and provided, further, that no such deduction shall be available to Debiopharm with respect to royalties paid under such Third Party Other Patent Licenses to the extent that the Sublicensee is obligated (A) to
reimburse Debiopharm or its Affiliate for such royalties or (B) to pay such royalties directly to the applicable Third Party(ies) under such Third Party Other Patent Licenses – i.e., Debiopharm shall not be entitled to deduct such
Third Party royalties against Royalties due to Curis to the extent that Debiopharm or its Affiliate is not liable for, or Debiopharm or its Affiliate recovers, or has the right to recover, such Third Party royalties from a Sublicensee. 

(iii) Notwithstanding the foregoing, in no event shall any and all applicable royalty reductions pursuant to subparagraphs
(i) and (ii) above, in the aggregate, reduce the payments that would otherwise be due to Curis with respect to Sublicensee Royalties in any country for any calendar quarter by more than [**] percent ([**]%). 
  

	 	(b)	Generic Competition. 

 On a
country-by-country basis, if at any time with respect to a Product being sold by a Sublicensee in a given country (i) one or more Third Parties is selling Generic Products in such country, and (ii) Generic Market Penetration (defined
below) in such country equals or exceeds the applicable percentage set forth below, then the applicable royalty rate above shall be reduced by the corresponding percentage set forth below in such country in each subsequent calendar quarter of the
Royalty Term for such Product in such country. For purposes of this Section 6.5.2(b), the “Generic Market Penetration” in a country shall be calculated using the formula [**]. For purposes of the foregoing calculation,
the [**] shall be determined by [**] (it being understood that if, in calculating [**]. 
  

  
 Page 18 of 45 

			
	Generic Market Penetration	  	 Percentage reduction in
 Royalties

	  
 Greater than [**]% but less than [**]%
	  	  
 [**]%

	  
 Equal to or greater than [**]%
	  	  
 [**]%

  

	6.5.3	Royalties on Net Sales 

 Subject
to Section 6.7.1(a), In the event that Debiopharm and/or its Affiliates make direct sales of the Product, i.e., without involvement of a Sublicensee, Debiopharm shall pay to Curis Royalties calculated on Net Sales as follows: 

 

			
	Annual Net Sales by Debiopharm and its Affiliates in the Territory	  	 Royalties (to be paid
 by Debiopharm)

	  
 Annual Net Sales by Debiopharm and/or its Affiliates below US$[**]:
	  	  
 [**]% of Net Sales

	  
 Annual Net Sales by Debiopharm and/or its Affiliates between US$[**] and US$[**]:
	  	  
 [**]% of Net Sales

	  
 Annual Net Sales by Debiopharm and/or its Affiliates above US$[**]:
	  	  
 [**]% of Net Sales

  

	 	(a)	Third Party Patents. 

 (i) If Debiopharm reasonably determines, upon the advice of outside patent counsel, that it must obtain one or more licenses under issued patents of Third Parties that, in the absence of such license(s), would be infringed by the
development, manufacture, use, sale or import of the Compound per se contained in a Product in a country (“Third Party Patent Licenses”), then the royalties actually paid by Debiopharm or its Affiliate under such Third Party
Patent Licenses in such country shall be deducted from the Royalties due to Curis with respect to Net Sales of such Product in such country; provided that in no event shall the Royalties due to Curis with respect to Net Sales of such Product in such
country be reduced by more than [**] percent ([**]%) as a result of such deductions. 
 (ii) If Debiopharm
reasonably determines to secure a license from a Third Party other than for the Compound per se (“Third Party Other Patent Licenses”), then [**] percent ([**]%) of the royalties actually paid by Debiopharm or its
Affiliate under such Third Party Other Patent Licenses in such country shall be deducted against the Royalties due to Curis with respect to such country; provided that in no event shall any such Royalties due to Curis with respect to such country be
reduced by more than [**] percent ([**]%) as a result of such credits. 
  

  
 Page 19 of 45 

 (iii) Notwithstanding the foregoing, in no event shall any and all
applicable royalty reductions pursuant to subparagraphs (i) and (ii) above, in the aggregate, reduce the Royalties that would otherwise be due to Curis in any country for any calendar quarter by more than [**] percent ([**]%). 

 

	 	(b)	Generic Competition. 

 On a
country-by-country basis, if at any time with respect to a Product being sold by a Debiopharm or its Affiliate in a given country (i) one or more Third Parties is selling Generic Products in such country, and (ii) Generic Market
Penetration (defined below) in such country equals or exceeds the applicable percentage set forth below, then the applicable royalty rate above shall be reduced by the corresponding percentage set forth below in such country in each subsequent
calendar quarter of the Royalty Term for such Product in such country. For purposes of this Section 6.5.3(b), the “Generic Market Penetration” in a country shall be calculated using the formula [**]. For purposes of the
foregoing calculation, [**] shall be determined by [**]. 
  

			
	Generic Market Penetration	  	 Percentage reduction in
 Royalties

	  
 Greater than [**]% but less than [**]%
	  	  
 [**]%

	  
 Equal to or greater than [**]%
	  	  
 [**]%

  

	 	(c)	No Payment Reduction Below Zero. 

 Notwithstanding any other provision of this Agreement to the contrary, under no circumstances shall any and all deductions and reductions available to Debiopharm under this Section 6.5.3, in the aggregate, result in any payment being
due by Curis to Debiopharm. 
  

	6.5.4	Substantial Change in Pricing Profile 

 The Parties recognize the high importance of competitive cost of finished products to determine the marketability and profitability of the Product in the environment of increasing pressure on price for future medication. If during the
development of the Product, but not prior to the initiation of the first Phase III clinical trial anywhere in the Territory, Debiopharm believes in good faith that the cost of goods sold of the Product will be non-competitive compared to
then-marketed small molecule cancer products, the parties agree to [**] 
 [**] will have the right to refer this issue to the
JSC for further discussion. The JSC will discuss in good faith Debiopharm’s [**] in both cases exploring in detail the rationale for [**]. If the JSC determines that [**], the JSC will discuss in good faith and, if the Parties’ respective
JSC representatives mutually agree that it is appropriate, will submit to the Parties a proposal to [**]. Provided that Debiopharm has provided [**], the JSC shall submit such proposal within [**] after the date Debiopharm refers the matter to the
JSC. In no event shall any such [**]. For clarity, this Section 6.5.4 will in no way impact the [**]. 
  

  
 Page 20 of 45 

 The Parties will examine the JSC’s proposal in good faith and either accept it and
agree to the JSC’s recommended [**], or, if one Party does not agree with the proposal, will enter into further discussions. If one or both of the Parties do not agree with the proposal, then the Parties agree to negotiate in good faith for
[**] days from the date that either Curis or Debiopharm notified the other Party that it did not accept the JSC proposal. Should the Parties not find an agreement within the aforementioned period of [**] days, this issue will be referred to the
chief executive officer of each Party, who will discuss in good faith and endeavor to find an agreement. Should the chief executive officers of the Parties fail to reach an agreement within [**] days as of the date this matter has been referred to
them, the Parties will appoint at Debiopharm’s expense three independent and neutral arbitrators, whose decision on the [**] will be binding on the Parties. The arbitrators will review and consider the data provided by Debiopharm to Curis
pursuant to this Section 6.5.4 regarding [**] and determine if such amounts are reasonable, taking into account whether and to what extent the difference between the [**]. If the arbitrators determine that [**] are not reasonable, the Parties
will ask the arbitrators to determine [**]. If such recalculation results in [**], then no reduction will be made to any of the [**]. For the avoidance of doubt, in no event will there be [**]. 
  

	6.6	Copies of Third Party License Agreements 

 Debiopharm shall provide to Curis a true and complete copy of each Third Party Patent License and Third Party Other Patent License, and of each amendment to any such agreement, in each case, within thirty
(30) days after execution of such agreement or amendment, provided that Debiopharm may redact from such copy any sensitive or proprietary information that is not necessary to ascertain Debiopharm’s, its Affiliate’s or the applicable
Sublicensee’s compliance with the terms and conditions of this Agreement (including, without limitation, Debiopharm’s payment and reporting obligations hereunder). 
  

	6.7	Payments 

  

	6.7.1	Timing of Royalty Payments and Sharing of Sublicensing Payments. 

 (a) Royalties on Net Sales shall be paid by Debiopharm to Curis quarterly within forty-five (45) days after the end of calendar quarter in which such Net Sales are made (as determined by the date of
invoice or billing). 
 (b) Royalties on Sublicensee Royalties shall be paid by Debiopharm to Curis quarterly within forty-five
(45) days after such Sublicensee Royalties are received by Debiopharm or its Affiliate. If such Sublicensee Royalties are significantly overdue, then upon Curis’ request, the Parties agree to discuss the matter in good faith. 

(c) Curis’s share of Sublicensing Payments shall be paid by Debiopharm to Curis within forty-five (45) days after such
Sublicensing Payments are received by Debiopharm or its Affiliate. 
  

	6.7.2	 All payments to Curis hereunder shall be made using the bank details provided by Curis. The payments of Royalties and sharing of Sublicensing Payments
shall be made in United States Dollars. If payments of Sublicensee Royalties, Net Sales, or Sublicensing Payments are made in another currency than the United States Dollar, Debiopharm shall convert them into United Sates Dollars for the purpose of
the calculation of Royalties

  

  
 Page 21 of 45 

	 	 
and sharing of Sublicensing Payments by applying the average interbank exchange rate as published on www.oanda.com for the last day of each month within the calendar quarter for which payment to
Curis is due. All costs associated with making payments to Curis, including the cost of wire transfers, shall be paid by Debiopharm and shall not be deducted from the payments to Curis. 

  

	6.7.3	Debiopharm shall (and shall require its Affiliates to) prepare and maintain complete and accurate books and records regarding Net Sales (including gross sales and
applicable deductions from gross sales), Sublicensee Royalties, royalties paid to Third Parties under Third Party Patent Licenses and Third Party Other Patent Licenses, Sublicensing Payments and Royalties due hereunder for a period of at least two
(2) calendar years after the end of the calendar year in which such activities occurred. Curis shall have the right to have such books and records inspected by an independent certified auditor selected by Curis and accepted by Debiopharm, whose
acceptance shall not be unreasonably withheld, to confirm Net Sales (including gross sales and applicable deductions from gross sales), Sublicensee Royalties, royalties paid to Third Parties under Third Party Patent Licenses and Third Party Other
Patent Licenses, Sublicensing Payments and Royalties due hereunder, for a period covering not more than the preceding two (2) calendar years. Such auditor will execute a reasonable written confidentiality agreement with Debiopharm and will
disclose to Curis only such information as is reasonably necessary to provide Curis with information regarding any actual discrepancies between the amounts reported or paid and the amounts payable under this Agreement. Such auditor will send a copy
of its report to Debiopharm within fifteen (15) days of delivery of such report to Curis. Such report will include the methodology and calculations used to determine the results. Prompt adjustments shall be made by the Parties to reflect the
results of such audit. Records to be available under an inspection shall include all relevant documents pertaining to payments specified above, including all relevant documents received by Debiopharm from Sublicensees. The appointed auditor shall
have the right to interview selected staff and copy relevant documents. Such right may be exercised by Curis only once per calendar year. Curis shall bear the fees and expenses of such inspection, provided that, if an underpayment of more than five
percent (5%) of the payments due for any calendar year is discovered in any inspection, then Debiopharm shall bear all fees and expenses of that inspection within forty-five (45) days after receipt of invoice from Curis, and shall pay to
Curis within forty-five (45) days after receipt of the auditor’s report the deficiency not previously paid, plus accrued interest on the underpayment at the floating rate of LIBOR [**] (as quoted in The Wall Street Journal or its successor
on the day after the payment is due) calculated from the due date to the date paid in full. 

  

	6.7.4	Without limiting any other rights or remedies available to Curis, Debiopharm shall pay Curis interest on any payments that are not paid on or before [**] days from the
due date at the floating rate of LIBOR [**] (as quoted in The Wall Street Journal or its successor on the day after the payment is due) calculated from the due date to the date paid in full. 

  

	6.7.5	In the event Debiopharm fails to pay overdue amounts to Curis within the due date under this Section 6.7, Curis shall have the right to terminate this Agreement
upon forty-five (45) days’ prior written notice to Debiopharm pursuant to Section 12.5, unless Debiopharm has cured such failure to pay by the end of such forty-five (45-) day period. 

  

	6.7.6	 Debiopharm shall make payments to Curis under this Agreement withholding any taxes that may be due with respect to such payments to the extent that
such withholding is

  

  
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required by applicable law. If any taxes are required to be withheld by Debiopharm, then Debiopharm shall (a) deduct such taxes from the payment made to Curis, (b) timely pay the taxes
to the proper taxing authority, and (c) send proof of payment to Curis and certify receipt of such payment by the applicable tax authority within sixty (60) days following such payment. 

  

	7	INTELLECTUAL PROPERTY 

  

	7.1	Ownership of Intellectual Property Rights and Inventions 

  

	7.1.1	The Debiopharm Intellectual Property Rights shall at all times be and remain the sole property of Debiopharm. The Curis Intellectual Property Rights shall at all times
be and remain the sole property of Curis. 

  

	7.1.2	Inventorship of inventions conceived of and reduced to practice pursuant to this Agreement (“Inventions”) shall be determined in accordance with
the rules of inventorship under United States patent laws. Debiopharm shall solely own all Inventions made solely by one or more Debiopharm employees, and Curis shall solely own all Inventions made solely by one or more Curis employees. All
Inventions made jointly by one or more Debiopharm employees and one or more Curis employees (“Joint Inventions”) shall be owned jointly by Debiopharm and Curis. 

  

	7.1.3	In the event that it is legally necessary to obtain a license under one or more Third Party Patents in order for Debiopharm to be able to develop, manufacture, and/or
commercialize the Product in one or more countries of the Territory, and Debiopharm is unable to obtain such a license, Debiopharm may, at its election and upon thirty (30) days’ written notice to Curis, either terminate this Agreement in
its entirety or terminate this Agreement for the relevant country(ies) of the Territory. If Debiopharm terminates this Agreement in its entirety pursuant to this Section 7.1.3, the consequences of such termination shall be as set forth in
Section 13.4. If Debiopharm terminates its license in specified country(ies) of the Territory, the consequences of such termination shall be as set forth in Section 13.2. 

  

	7.2	Patent Prosecution and Maintenance 

  

	7.2.1	 As from the Effective Date, Debiopharm shall have the first right to prepare, file, prosecute and maintain the Patents using independent counsel
selected by Debiopharm and agreed to by Curis, at Debiopharm’s sole expense. With respect to any Patents, Debiopharm shall (a) consult with Curis and keep Curis fully informed of the progress of all patent applications and patents,
including all issues relating to the preparation, filing, prosecution and maintenance of such Patents, (b) consult with Curis and keep Curis fully informed about Debiopharm’s patent strategy with respect to such Patents, (c) provide
to Curis advance copies of documents relevant to preparation, filing, prosecution and maintenance of such Patents sufficiently in advance of filing to allow Curis a reasonable opportunity to review and comment on such documents, (d) reasonably
consider Curis’ comments on such patent filings, and (e) provide Curis with final copies of such documents. Debiopharm agrees to use Reasonable Commercial Efforts to obtain commercially reasonable patent protection in the best interest of
Curis and Debiopharm. Debiopharm shall control and shall bear any and all costs regarding the filing, prosecution and maintenance of the Patents in the Territory, including but not limited to filing applications for, and obtaining, patent term
extensions, supplemental protection

  

  
 Page 23 of 45 

	 	 
certificates (SPC) and the like relating to the Product and in each country of the Territory where Debiopharm reasonably considers that it is appropriate to do so. If Debiopharm decides to
abandon or not maintain any Patent in the Territory, then Debiopharm shall provide Curis with sixty (60) days’ prior written notice of such decision (or such other longer period of time reasonably necessary to allow Curis to assume such
responsibilities, at the sole discretion of Debiopharm). In such event, Curis shall have the right, at its option, to control the filing, prosecution and/or maintenance of any such Patent, at its own expense. Curis shall inform Debiopharm of its
decision to file, prosecute or maintain a Patent in any country. Should Debiopharm exploit, use or benefit from such a Patent in a country where Curis has filed, prosecuted and/or maintained such Patent at its own expense, Debiopharm shall reimburse
Curis for all reasonable costs pertaining to the filing, prosecution and/or maintenance of such Patent in that country upon Debiopharm’s use, exploitation or benefit of such Patent in such country. 

  

	7.2.2	Each Party agrees to cooperate fully in the preparation, filing, prosecution and maintenance of Patents under this Agreement and in the obtaining and maintenance of any
patent extensions, supplementary protection certificates and the like with respect to any Patents. Such cooperation includes, but is not limited to, promptly informing the other Party of any matters coming to such Party’s attention that may
affect the preparation, filing, prosecution or maintenance of any Patents. 

  

	7.3	Patent Infringement 

  

	7.3.1	Each Party shall promptly notify the other Party in writing of any alleged or threatened infringement of any Patent in any country of the Territory of which it becomes
aware. The notifying Party will supply documentation of the infringing activities that are in its possession to the other Party. 

  

	7.3.2	Debiopharm shall have the first right but not the obligation to bring and control any action or proceeding with respect to infringement of any Patent, at its own
expense and by counsel of its own choice, and Curis shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. If Debiopharm fails to bring any such action or proceeding within (a) one hundred
twenty (120) days following the notice of alleged infringement or (b) fifteen (15) days before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever comes first, then Curis
shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and Debiopharm shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. In the event a
Party brings an infringement action in accordance with this Section 7.3.2, the other Party shall cooperate fully, including, if required to bring such action, the furnishing of a power of attorney or being named as a party, in each case, at the
expense of the Party bringing such action. Neither Party shall have the right to settle any patent infringement litigation under this Section 7.3.2 without the prior written consent of such other Party, which shall not be unreasonably withheld.

  

	7.3.3	 Except as otherwise agreed by the Parties in connection with a cost-sharing arrangement, any recovery realized as a result of any action or proceeding
described in Section 7.3.2 (whether by way of settlement or otherwise) will be allocated as follows: (a) first, to reimbursement of unreimbursed legal fees and expenses incurred by the Party that brought and controlled such action or
proceeding; (b) then, to reimbursement

  

  
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of unreimbursed legal fees and expenses of the other Party in connection with such action or proceeding; and (c) after such reimbursement, any remainder of such recovery will be allocated
[**] percent ([**]%) to the Party that brought and controlled such action or proceeding and [**] percent ([**]%) to the other Party. 

  

	7.4	Infringement of Third Party Patents: Each Party shall promptly notify the other in writing of any allegation by a Third Party that the development, manufacture,
use, sale, offer for sale or import of the Compound or any Product pursuant to this Agreement infringes or may infringe such Third Party’s patents. Debiopharm shall have the first right to undertake and control any defense or settlement of any
such claim at its own expense (subject to Section 6.5) and by counsel of its own choice, and Curis shall have the right, at its own expense, to be represented in any such defense by counsel of its own choice. If Debiopharm fails to undertake
the defense or settlement of any such claim by the earlier of (a) thirty (30) days after receipt of such Third Party’s notice, and (b) twenty (20) days before the deadline, if any, set by such Third Party or by applicable
laws, rules and regulations for responding to such claim, Curis shall have the right to undertake and control any defense or settlement of such claim, at its own expense and by counsel of its own choice, and Debiopharm shall have the right, at its
own expense, to be represented in any such action by counsel of its own choice. Neither Party shall have the right to settle any Third Party claim under this Section 7.4 in a manner that diminishes the rights or interests of the other Party
without the written consent of such other Party (which shall not be unreasonably withheld). 

 Notwithstanding the
foregoing provisions of this Section 7.4, in the event of [**], Curis shall [**] at its own expense [**] and Debiopharm shall have the right, at its own expense, [**]. Curis shall [**] under this Section 7.4 [**] (which shall not be
unreasonably withheld). For clarity, this paragraph does not extend or apply to any such [**] with respect to [**] any Sublicensee. 
  

	7.5	Patent Marking: Debiopharm shall apply, and shall require Sublicensees to apply, the patent marking notices required by the law of the countries where Products
are made, sold, used or shipped. 

  

	7.6	Product Trademarks: Debiopharm shall freely choose, register, use and license any trademark for the Product (excluding any corporate trademark or trade name of
Curis) in the Field of Use in the Territory. All associated costs shall be borne by Debiopharm. Such trademarks shall be filed in the name of Debiopharm (or any Third Party, Affiliates or Sublicensees) and shall remain Debiopharm’s property
after expiration or termination of this Agreement. 

  

	8	REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS 

  

	8.1	Each Party represents, warrants and covenants to the other that: 

  

	 	(i)	It is duly organized and validly existing under the laws of its state or country of incorporation, and has full corporate power and authority to enter into this
Agreement and to carry out the provisions hereof; 

  

	 	(ii)	The execution, delivery and performance of this Agreement by it does not conflict with any agreement or instrument, oral or written, to which it is a party or by which
it may be bound; and 

  

  
 Page 25 of 45 

	 	(iii)	It has not granted, and shall not grant, any right to any Third Party which would conflict with the rights granted to the other Party hereunder.

  

	8.2	Curis represents and warrants that as of the Effective Date: 

  

	 	(i)	All rights pertaining to the Curis Patents are owned by Curis; 

  

	 	(ii)	It has not received any written notice from any Third Party claiming that the manufacture, use, sale, or importation of the Compound or Product by Curis prior to the
Effective Date infringed any patent owned or controlled by any Third Party; and 

  

	 	(iii)	Curis is not a party to any legal action, suit or proceeding relating to the Curis Intellectual Property Rights, and Curis has not received any written communication
from any Third Party threatening such action, suit or proceeding; and 

  

	 	(iv)	Curis has the right to grant the license to the Compound under the Curis Patents and Curis Know-How provided to Debiopharm in Section 2.1; and

  

	 	(v)	To the best of Curis’s knowledge, the use of the Compound in the Field of Use [**]; 

  

	 	(vi)	Curis has not granted any license or other right to any Third Party regarding the Compound and/or the Curis Intellectual Property Rights; and 

 

	 	(vii)	Curis has not received any grant from or entered into any agreement with the United States government and/or any of its subdivisions or federal governmental bodies, or
any governmental bodies outside the United States of America, regarding the Compound and/or the Curis Intellectual Property Rights. 

  

	8.3	Debiopharm agrees that all of its activities, and the activities of its Affiliates and Sublicensees related to its use of the Curis Patents and Curis Know-How and all
development and commercialization of the Product pursuant to this Agreement shall comply with all applicable legal and regulatory requirements. Debiopharm, its Affiliates, and Sublicensees shall not knowingly engage in any activities that use the
Curis Patents and/or Curis Know-How in a manner that is outside the scope of the license rights granted to Debiopharm hereunder. 

  

	8.4	Except as expressly set forth in this Agreement, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE
WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES. 

  

	9	INDEMNIFICATION AND INSURANCE 

  

	9.1	 Debiopharm shall indemnify, defend, and hold harmless Curis and its Affiliates and their respective directors, officers, employees and agents (each, a
“Curis Indemnitee”) from and against any and all claims, suits, actions, demands, liabilities, expenses and/or loss, including reasonable legal expense and attorneys’ fees (collectively,
“Losses”), to which any Curis Indemnitee may become subject as a result of any claim, demand,

  

  
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action or other proceeding (each, a “Claim”) by any Third Party to the extent such Losses arise out of or result from (a) any breach by Debiopharm of its
representations, warranties, covenants or obligations in this Agreement or (b) the development, importation, exportation, storage, handling, transportation, distribution, marketing, promotion, manufacture, use, sale or any other disposition of
the Compound or any Product by or for Debiopharm, its Affiliates or Sublicensees hereunder, or (c) the death, personal injury, or illness of any person or out of damage to any property related in any way to the rights granted under this
Agreement; except, in each case, to the extent such claim is caused by the gross negligence or willful misconduct of Curis. 

  

	9.2	Curis shall indemnify, defend, and hold harmless Debiopharm and its Affiliates and their respective directors, officers, employees and agents (each, a
“Debiopharm Indemnitee”) from and against any and all Losses to which any Debiopharm Indemnitee may become subject as a result of any Claim by a Third Party to the extent such Losses arise out of or result from (a) any
breach by Curis of its representations, warranties, covenants or obligations in this Agreement or (b) the development, importation, exportation, storage, handling, transportation, manufacture, use or other disposition of the Compound or any
Product by or for Curis or its Affiliates prior to the Effective Date; except, in each case, to the extent such claim is caused by the gross negligence or willful misconduct of Debiopharm. In addition, Curis shall indemnify, defend and hold harmless
Sublicensees from and against any and all Losses to which any Sublicensee may become subject as a result of any claim by a Third Party (other than another Sublicensee) solely to the extent such Losses arise out of or result from Curis’ breach
of any representation or warranty set forth in Section 8.2 or breach of the non-competition provisions of Section 14.1. Notwithstanding the foregoing provisions of this Section 9.2 to the contrary, Curis’ obligation to indemnify
Debiopharm Indemnitees under this Section 9.2 with respect to Curis’ representation and warranty under Section 8.2(v) is contingent upon Debiopharm’s compliance with its obligations regarding clinical trial protocols and Product
labeling under Section 3.2.1; and Curis’ obligation to indemnify Sublicensees with respect to Curis’ representation and warranty under Section 8.2(v) is contingent upon such Sublicensees’ clinical trial protocols and Product
labeling complying with restrictions consistent with the Parties’ objectives under Section 3.2.1, which restrictions shall be mutually agreed upon by the Parties in writing prior to Debiopharm’s grant of the first sublicense. For the
avoidance of doubt: (i) except as expressly set forth in Section 8.2, Curis makes no representation, and extends no warranty, of any kind with respect to non-infringement of any Third Party patent rights; and (ii) Curis has no
obligation to indemnify, defend or hold harmless (A) Debiopharm or any of its Affiliates against any allegation that the development, manufacture, use, sale, offer for sale or import of the Compound or any Product infringes Third Party patent
rights, except in the case of Curis’ breach of the representations and warranties expressly set forth in Section 8.2; or (B) any Sublicensee with respect to any matter whatsoever, except in the case of Curis’ breach of the
representations and warranties expressly set forth in Section 8.2 or breach of the non-competition provisions of Section 14.1. 

  

	9.3	 For purposes of Sections 9.1 and 9.2, the Curis Indemnitee or Debiopharm Indemnitee (the “Indemnified Party”) shall give prompt
written notice to the other Party (the “Indemnifying Party”) of any claims, suits or proceedings by Third Parties which may give rise to any claim for which indemnification may be required under Section 9.1 or 9.2;
provided, however, that failure to give such notice shall not relieve the Indemnifying Party of its obligation to provide indemnification hereunder except, if and to the extent

  

  
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that such failure materially and adversely affects the ability of the Indemnifying Party to defend the applicable claim, suit or proceeding. The Indemnifying Party shall be entitled to assume the
defense and control of any such claim at its own cost and expense; provided, however, that the Indemnified Party shall have the right to be represented by its own counsel at its own cost in such matters. Neither the Indemnifying Party nor the
Indemnified Party shall settle or dispose of any such matter in any manner which would adversely affect the rights or interests of the other Party (including the obligation to indemnify hereunder) without the prior written consent of the other
Party, which shall not be unreasonably withheld or delayed. Each Party shall reasonably cooperate with the other Party and its counsel in the course of the defense of any such suit, claim or demand, such cooperation to include without limitation
using reasonable efforts to provide or make available documents, information and witnesses. 

  

	9.4	At and during such time as Debiopharm, its Affiliates, or its Sublicensees, begins clinical testing, sale or distribution of Products, Debiopharm shall (and shall
require its Affiliates and Sublicensees to) at its sole expense, procure and maintain commercially reasonable insurance policies as would be maintained by similarly situated pharmaceutical companies consistent with the current industry standards for
similar products, and compliant with any applicable law or regulation. Such insurance shall (a) provide that the policy is primary and not excess or contributory with regard to other insurance Curis may have, (b) include product liability
coverage in amounts no less than [**] United States Dollars (US$[**]) per incident and [**] United States Dollars (US$[**]) annual aggregate, (c) be endorsed to include contractual liability coverage for Debiopharm’s indemnification under
Section 9.1, and (d) by virtue of the minimum amount of insurance coverage required under Section 9.4(b), not be construed to create a limit of Debiopharm’s liability with respect to its indemnification under Section 9.1.
Upon request, a copy of such insurance policy shall be sent to Curis. 

  

	9.5	IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, PUNITIVE OR SPECIAL DAMAGES OF THE OTHER PARTY ARISING OUT OF OR RELATED TO THIS
AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; provided, however, that this Section 9.5 shall not be construed to limit either Party’s indemnification obligations with
respect to Third Party claims under Sections 9.1 and 9.2. 

  

	10	CONFIDENTIALITY 

  

	10.1	Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, the Receiving Party shall keep confidential and not publish
or otherwise disclose, and shall not use for any purpose other than as expressly provided in this Agreement, any Confidential Information of the Disclosing Party. The Receiving Party shall take the same degree of care that it uses to protect the
security and confidentiality of its own confidential and proprietary information of a similar nature and importance (but in any event no less than reasonable care) to ensure that its employees, agents, consultants and other representatives do not
make any unauthorized use or disclosure of the Confidential Information. The Receiving Party shall promptly notify the other Party upon discovery of any unauthorized use or disclosure of the Confidential Information. 

  

  
 Page 28 of 45 

	10.2	Subject to Section 10.9, the Receiving Party may disclose Confidential Information as expressly permitted by this Agreement or if and to the extent such disclosure
is reasonably necessary in the following instances: 

 (a) filing or prosecuting Patents as
permitted by this Agreement; 
 (b) obtaining and maintaining regulatory filings for Products such Party has a
license or right to develop or commercialize hereunder; 
 (c) prosecuting or defending litigation; 

(d) complying with applicable court orders or governmental regulations; 
 (e) disclosure to Affiliates, licensees and sublicensees, potential licensees and sublicensees, employees, consultants or
agents of the Receiving Party who have a need to know such information in order for the Receiving Party to exercise its rights or fulfill its obligations under this Agreement, provided, in each case, that any such Affiliate, licensee, sublicensee,
potential licensee, potential sublicensee, employee, consultant or agent agrees to be bound by terms of confidentiality and non-use no less restrictive than those set forth in this Article 10; and 
 (f) disclosure to Third Party investors and potential investors on a confidential basis in connection with due diligence or
similar investigations by such Third Parties and/or in confidential financing documents, in each case, to the extent reasonably necessary for such Third Party(ies) to make an investment decision with respect to the Receiving Party’s securities,
provided, in each case, that any such Third Party agrees to be bound by reasonable obligations of confidentiality and non-use, and that the Receiving Party shall allow the Disclosing Party a reasonable opportunity to review the Confidential
Information proposed for disclosure prior to such disclosure. 
 Notwithstanding the foregoing, in the event the Receiving Party
is required to make a disclosure of Confidential Information pursuant to Section 10.2(c) or 10.2(d), the Receiving Party shall, except where impracticable, give reasonable advance notice to the Disclosing Party of such required disclosure and,
at the Disclosing Party’s request and expense, cooperate fully with the Disclosing Party’s lawful efforts to contest such required disclosure, to minimize the scope of such required disclosure, and/or to obtain a protective order or other
confidential treatment of the Confidential Information required to be disclosed. In any event, the Receiving Party agrees to take all reasonable action to avoid disclosure of Confidential Information hereunder. 
  

	10.3	The Parties agree that the terms of this Agreement shall be treated as Confidential Information by both Parties. 

  

	10.4	 Debiopharm agrees that Curis may issue a press release upon execution of this Agreement, subject to Debiopharm’s prior review and approval, such
approval not to be unreasonably withheld or delayed. The Parties further acknowledge that each Party may desire or be required to issue subsequent press releases or to make other public disclosures relating to this Agreement or its terms. The
Parties agree to consult with each other reasonably and in good faith with respect to the text and timing of such press releases or other public disclosures prior to the issuance thereof, provided that a Party may not unreasonably withhold consent
to such releases, and that either Party may

  

  
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issue such press releases as it determines, based on advice of counsel, are reasonably necessary to comply with laws or regulations. In addition, following the initial press release announcing
this Agreement, each Party shall be free to disclose, without the other Party’s prior written consent, the existence of this Agreement, the identity of the other Party and those terms of this Agreement which have already been publicly disclosed
in accordance herewith. 

  

	10.5	Subject to Section 10.4, Debiopharm shall not use the name “Curis” nor any variation or adaptation thereof, nor any trademark, tradename or other
designation owned by Curis or its Affiliates, nor the names of any of its officers, employees or agents, for any purpose without the prior written consent of the other Party in each instance, except that Debiopharm may state that it has licensed
from Curis one or more of the patents and/or applications within the Curis Patents, and Debiopharm may use Curis’s logo on Debiopharm’s corporate website and corporate presentation materials for such purpose, subject to Curis’s prior
review and approval (not to be unreasonably withheld) of Debiopharm’s proposed use thereof. 

  

	10.6	Subject to Section 10.4, Curis shall not use the name of “Debiopharm” or its Affiliates nor any variation or adaptation thereof, nor any trademark,
tradename or other designation owned by Debiopharm or its Affiliates, nor the names of any of its officers, employees or agents, for any purpose without the prior written consent of the other Party in each instance, except that Curis may state that
it has licensed to Debiopharm one or more of the patents and/or applications within the Curis Patents, and Curis may use Debiopharm’s logo on Curis’s corporate website and corporate presentation materials for such purpose, subject to
Debiopharm’s prior review and approval (not to be unreasonably withheld) of Curis’s proposed use thereof. 

  

	10.7	Each Party recognizes that the publication by Debiopharm of Data and other information regarding Compounds and Products, such as by public oral presentation, manuscript
or abstract, may be beneficial to both Parties provided such publications are subject to reasonable controls to protect Confidential Information. Accordingly, Curis shall have the right to review and comment on any material proposed for public oral
presentation or publication by Debiopharm that includes Data or other results of preclinical or clinical development of the Compound or any Product and/or includes Confidential Information of Curis. Before any such material is submitted for
publication, Debiopharm shall deliver a complete copy to Curis at least forty-five (45) days prior to submitting the material to a publisher or initiating any other disclosure. Curis shall review any such material and give its comments to
Debiopharm within thirty (30) days of the delivery of such material to Curis. With respect to public oral presentation materials and abstracts, Curis shall make reasonable efforts to expedite review of such materials and abstracts, and shall
return such items as soon as practicable to Debiopharm with appropriate comments, if any, but in no event later than thirty (30) days from the date of delivery to Curis. Debiopharm shall comply with Curis’ request to delete references to
Curis’s Confidential Information in any such material. In addition, if any such publication contains patentable subject matter, then at Curis’ request, Debiopharm shall either delete the patentable subject matter from such publication or
delay any submission for publication or other public disclosure for a period of up to an additional sixty (60) days so that appropriate patent applications may be prepared and filed. 

  

	10.8	 Subject to Section 10.7, Debiopharm and its contractors, including without limitation clinical research organizations, shall have the right to
publish results of all clinical trials

  

  
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of the Compound or any Product on Debiopharm’s clinical trial register, and such publication will not be a breach of the confidentiality obligations provided in this Article 10.

  

	10.9	The Parties have determined that [**], including, without limitation, [**] as evidenced by this Agreement, and have concluded [**]. Accordingly, the Parties agree as
follows: 

  

	 	(a)	For purposes of this Section 10.9, [**] shall mean [**]. 

  

	 	(b)	Debiopharm shall [**]. 

 For
clarity, nothing contained in this Section 10.9 is intended to limit, modify or otherwise affect in any way Curis’ obligations or Debiopharm’s rights [**]. 
  

	10.10	All obligations of confidentiality and non-use imposed under this Article 10 shall expire ten (10) years after the effective date of termination or expiration of
this Agreement, except that Section 10.9 shall survive termination or expiration of this Agreement indefinitely. 

  

	11	EXPIRY OF THE AGREEMENT; CONSEQUENCES OF EXPIRY 

  

	11.1	Unless terminated earlier pursuant to Article 12 or other mutual written agreement, this Agreement shall commence upon the Effective Date and shall expire, on a
country-by-country basis on the expiration of the Royalty Term. 

  

	11.2	Upon expiration of the Royalty Term for a given country, Debiopharm’s license under Section 2.1 with respect to such country shall become fully paid-up,
royalty-free, non-exclusive and transferable. 

  

	12	TERMINATION 

  

	12.1	Debiopharm Termination Without Cause: Debiopharm may terminate this Agreement at any time for any scientific, technical, administrative or commercial reasons
upon ninety (90) days’ prior written notice to Curis. 

  

	12.2	Debiopharm Termination for Permanent Injunction: In the event Debiopharm is permanently enjoined from exercising its license under this Agreement pursuant to a
patent infringement action brought by a Third Party, or if neither Debiopharm nor Curis undertakes the defense or settlement of a Third Party suit alleging infringement for a within the six- (6-) month period after notice of such suit, then
Debiopharm may terminate this Agreement in the country where such suit was filed upon thirty (30) days’ prior written notice to Curis. Debiopharm’s termination right under this Section 12.2 shall be exercisable on a
country-by-country basis. For the avoidance of doubt, any termination by Debiopharm in accordance with Section 7.1.3 does not fall within the scope of this Section 12.2. 

  

	12.3	 Curis Termination for Debiopharm Failure to File IND/CTA: If the IND/CTA Filing Conditions are met and Debiopharm fails to file an IND or CTA in
a Major Market on or before the applicable IND/CTA Filing Deadline under Section 3.2.5 (other than for reasons beyond the reasonable control of Debiopharm, such as the requirements of the applicable Regulatory Authority), Curis may terminate
this Agreement on thirty (30) days’

  

  
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written notice to Debiopharm unless Debiopharm makes such filing before the end of such thirty (30) day period. In the event of such termination, Curis shall have no claim against Debiopharm
with respect to such failure to file. 

  

	12.4	Curis Termination for Debiopharm Diligence Failure: If Debiopharm does not correct a failure to use Reasonable Commercial Efforts within the applicable period
specified in, or determined in accordance with, Section 3.2.6(b) (a “Diligence Failure”), Curis shall have the right to terminate this Agreement on thirty (30) days’ written notice to Debiopharm unless
Debiopharm cures such Diligence Failure before the end of such thirty (30) day period. 

  

	12.5	Termination for Material Breach: Each Party shall have the right to terminate this Agreement upon ninety (90) days’ (or forty-five (45) days’
in the case of failure to make payment of amounts due hereunder) prior written notice to the other Party in the event of the material breach of any term or condition of this Agreement by the other Party, unless the breaching Party has cured such
breach by the end of the applicable cure period; provided, however, that: 

 (a) this
Section 12.5 shall not apply to: (i) any failure to file an IND or CTA in a Major Market (in which case, Curis’ termination right shall be as set forth in Section 12.3); or (ii) any Diligence Failure by Debiopharm (in which
case, Curis’ termination right shall be as set forth in Section 12.4); 
 (b) any right to terminate
under this Section 12.5 shall be stayed and the cure period shall be stopped in the event that, during any cure period, the Party alleged to have been in material breach shall have initiated dispute resolution in accordance with Article 20 with
respect to the alleged breach, which stay and stopping shall last so long as the allegedly breaching Party diligently and in good faith cooperates in the prompt resolution of such dispute resolution proceedings; and 
 (c) from and after initiation of the first Phase III Study of a Product in a Major Market, except in the case
of Debiopharm’s failure to make payments of amounts due hereunder, Curis shall not have the right to terminate this Agreement pursuant to this Section 12.5, and, as Curis’ sole remedy for material breach of this Agreement by
Debiopharm that is not cured within sixty (60) days after Curis’ written notice of material breach, Curis shall have the right to seek damages from Debiopharm and/or injunctive relief, in each case, in accordance with Article 20.

  

	12.6	Termination for Patent Challenge: Each Party shall have the right to terminate this Agreement immediately upon written notice to the other Party if the other
Party or its Affiliate directly, or through assistance granted to a Third Party, challenges, whether as a claim, a cross-claim, counterclaim, or defense, the validity or enforceability of any of such Party’s Patents before any court,
arbitrator, or other tribunal or administrative agency in any jurisdiction. 

  

	13	CONSEQUENCES OF TERMINATION 

  

	13.1	In the event of (i) termination of this Agreement by Debiopharm pursuant to Section 12.1, or (ii) termination of this Agreement by Curis pursuant to
Section 12.3, Section 12.4, Section 12.5 (subject to paragraph (c) thereof) or Section 12.6: 

 (a) The license granted by Curis to Debiopharm under Section 2.1 shall terminate and revert to Curis on the effective date of termination. 
  

  
 Page 32 of 45 

 (b) Curis shall have the right, exercisable upon written notice by Curis to
Debiopharm given within sixty (60) days after the effective date of such termination, to obtain, and effective upon such notice, Debiopharm shall, and it hereby does, grant to Curis, a non-exclusive, worldwide, royalty-bearing license, with the
right to sublicense, under Debiopharm Intellectual Property Rights solely to develop, make, have made, use, sell, offer for sale, have sold and import the Compound and Products in the Field of Use, subject to the terms and conditions set forth below
in this Section 13.1(b). 
 (i) Curis will pay to Debiopharm royalties at the rate of [**] percent ([**]%)
of Curis Net Sales (defined below) of Products. Royalties on Curis Net Sales will be payable on a country-by-country basis from first commercial sale of a Product in a country of the Territory and ending upon the later of: (a) expiration of the
last-to-expire valid claim of the Debiopharm Patents, which valid claim covers the composition of matter, or any method of manufacture or use, of the Product (or the Compound contained therein) in such country; and (b) the tenth
(10th) anniversary of first commercial sale of the Product in such country. For purposes of this Section 13.1(b), the definition of “Net Sales” set forth in Article 1 shall apply mutatis mutandis to define the term
“Curis Net Sales”. 
 (ii) Curis shall pay to Debiopharm [**] percent ([**]%) of all
Curis Sublicensee Royalties (defined below). For purposes of this Section 13.1(b), “Curis Sublicensee Royalties” shall mean royalties paid by Third Party sublicensees to Curis or any of its Affiliates with respect to
sales of Products by such Third Party sublicensees or any of their respective further sublicensees. 
 (iii)
Royalties on Curis Net Sales shall be paid by Curis to Debiopharm quarterly within forty-five (45) days after the end of calendar quarter in which such Curis Net Sales are made (as determined by the date of invoice or billing). Payments on
Curis Sublicensee Royalties shall be paid by Curis to Debiopharm quarterly within forty-five (45) days after such Curis Sublicensee Royalties are received by Curis or its Affiliate. If such Curis Sublicensee Royalties are significantly overdue,
then upon Debiopharm’s request, the Parties agree to discuss the matter in good faith. 
 (iv) All payments
to Debiopharm hereunder shall be made using the bank details provided by Debiopharm. Royalties on Curis Net Sales and payments on Curis Sublicensee Royalties shall be made in United States Dollars. If payments of Curis Net Sales or Curis Sublicensee
Royalties are made in another currency than the United States Dollar, Curis shall convert them into United Sates Dollars for the purpose of the calculation of royalties on Curis Net Sales and payments on Curis Sublicensee Royalties by applying the
average interbank exchange rate as published on www.oanda.com for the last day of each month within the calendar quarter for which payment to Debiopharm is due. All costs associated with making payments to Debiopharm, including the cost of wire
transfers, shall be paid by Curis and shall not be deducted from the payments to Debiopharm. 
 (v) Curis shall
(and shall require its Affiliates to) prepare and maintain complete and accurate books and records regarding Curis Net Sales (including gross sales and applicable deductions from gross sales), royalties payable with respect

  

  
 Page 33 of 45 

 
thereto, Curis Sublicensee Royalties and payments based thereon for a period of at least two (2) calendar years after the end of the calendar year in which such activities occurred.
Debiopharm shall have the right to have such books and records inspected by an independent certified auditor selected by Debiopharm and accepted by Curis, whose acceptance shall not be unreasonably withheld, to confirm Curis Net Sales (including
gross sales and applicable deductions from gross sales), royalties payable with respect thereto, Curis Sublicensee Royalties and payments based thereon, for a period covering not more than the preceding two (2) calendar years. Such auditor will
execute a reasonable written confidentiality agreement with Curis and will disclose to Debiopharm only such information as is reasonably necessary to provide Debiopharm with information regarding any actual discrepancies between the amounts reported
or paid and the amounts payable under this Agreement. Such auditor will send a copy of its report to Curis within fifteen (15) days of delivery of such report to Debiopharm. Such report will include the methodology and calculations used to
determine the results. Prompt adjustments shall be made by the Parties to reflect the results of such audit. Records to be available under an inspection shall include all relevant documents pertaining to payments specified above, including all
relevant documents received by Curis from Sublicensees. The appointed auditor shall have the right to interview selected staff and copy relevant documents. Such right may be exercised by Debiopharm only once per calendar year. Debiopharm shall bear
the fees and expenses of such inspection, provided that, if an underpayment of more than five percent (5%) of the payments due for any calendar year is discovered in any inspection, then Curis shall bear all fees and expenses of that inspection
within forty-five (45) days after receipt of invoice from Debiopharm, and shall pay to Debiopharm within forty-five (45) days after receipt of the auditor’s report the deficiency not previously paid, plus accrued interest on the
underpayment at the floating rate of LIBOR [**] (as quoted in The Wall Street Journal or its successor on the day after the payment is due) calculated from the due date to the date paid in full. 
 (vi) Without limiting any other rights or remedies available to Debiopharm, Curis shall pay Debiopharm interest on any
payments that are not paid on or before five (5) working days from the due date at the floating rate of LIBOR [**] (as quoted in The Wall Street Journal or its successor on the day after the payment is due) calculated from the due date to the
date paid in full. 
 (vii) In the event Curis fails to pay overdue amounts to Debiopharm by the due date
specified in this Section 13.1(b), Debiopharm shall have the right to terminate Curis’ license under Section 13.1(b) upon forty-five (45) days’ prior written notice to Curis, unless Curis has cured such failure to pay by the
end of such forty-five (45-) day period. 
 (viii) Curis shall make payments to Debiopharm under this Agreement
withholding any taxes that may be due with respect to such payments to the extent that such withholding is required by applicable law. If any taxes are required to be withheld by Curis, then Curis shall (a) deduct such taxes from the payment
made to Debiopharm, (b) timely pay the taxes to the proper taxing authority, and (c) send proof of payment to Debiopharm and certify receipt of such payment by the applicable tax authority within sixty (60) days following such
payment. 
 (c) If Curis chooses to obtain the non-exclusive license under Section 13.1(b), Debiopharm shall
(A) transfer to Curis as soon as reasonably

  

  
 Page 34 of 45 

 
practicable all Data and information in Debiopharm’s or its Affiliates’ Control and possession relating to the Compound or Products as may be necessary to enable Curis to practice such
license, (B) transfer and assign to Curis all of its right, title and interest in and to all INDs, NDAs, drug dossiers and master files with respect to any and all Products and all regulatory approvals with respect to any and all Products, and
(C) take such other actions and execute such other instruments, assignments and documents as may be necessary to effect the transfer of rights under this subparagraph (c) to Curis. 
  

	13.2	In the event of termination of this Agreement by Debiopharm in a country in the Territory pursuant to Section 7.1.3 or Section 12.2, the license granted by
Curis to Debiopharm under Section 2.1 in such country shall terminate and revert to Curis on the effective date of termination, the Territory shall thereafter exclude such country, and this Agreement shall otherwise remain in full force and
effect. 

  

	13.3	Consequences of Termination for Curis’ Material Breach: 

 For purposes of this Section 13.3, the term “Termination Event” shall mean: (a) in the case of termination of this Agreement by Debiopharm pursuant to Section 12.5,
the material breach of this Agreement by Curis that formed the basis for such termination; or (b) in the case of termination of this Agreement pursuant to Section 12.6, the action or activity of Curis that that formed the basis for such
termination. 
  

	13.3.1	Aggravated Termination Event: In the event of termination of this Agreement by Debiopharm pursuant to Section 12.5 or Section 12.6 for an Aggravated
Termination Event (defined below), Curis grants to Debiopharm a royalty-free, sole and exclusive license (even as to Curis) in and to the Compound and the Product under the Curis Intellectual Property Rights and Curis’ interest in the Joint
Patents, to develop, have developed, use, have used, sell, have sold, offer for sale, make, have made, manufacture, have manufactured, register, have registered, commercialize and have commercialized the Compound and Products, in any Indication in
the Field of Use, for the Royalty Term, in the Territory. Upon expiration of the Royalty Term, Section 11.2 shall apply. For purposes of this Section 13.3, an “Aggravated Termination Event” shall mean a Termination
Event that is not curable and results in significant negative impact upon Debiopharm’s ability to commercialize Products. By way of example, and not of limitation, a material breach of [**] would each be considered an Aggravated Termination
Event. A Termination Event other than the preceding examples may also qualify as an Aggravated Termination Event if the magnitude of the impact of such Termination Event upon Debiopharm’s ability to commercialize Products is substantially
equivalent to, or greater than, that of the preceding examples. 

  

	13.3.2	Other Termination Event: In the event of termination of this Agreement by Debiopharm pursuant to Section 12.5 or Section 12.6 for any Termination Event
other than an Aggravated Termination Event: 

 (a) the license granted by Curis to Debiopharm
pursuant to Section 2.1 remain in full force and effect in accordance with its terms, subject to Debiopharm’s compliance with Article 6; 
 (b) all JSC participation rights of Curis shall terminate and be of no further force or effect; 
  

  
 Page 35 of 45 

 (c) Debiopharm shall have the right to seek damages from Curis in accordance
with Article 20; and 
 (d) pending the outcome of arbitration proceedings pursuant to Article 20, Debiopharm
shall have the right to pay all amounts that become due under Article 6 after such termination into an escrow account with a reputable bank, and to the extent the arbitrators award damages to Debiopharm, the arbitrators shall be authorized, in their
discretion, (i) to cause the release to Debiopharm of all or any part of the escrowed funds in partial or full satisfaction of such award, and/or (ii) to adjust the amounts payable by Debiopharm to Curis under this Agreement to compensate
Debiopharm for damages suffered by Debiopharm as a result of Curis’ material breach. 
  

	13.4	In the event of termination of this Agreement in its entirety by Debiopharm pursuant to Section 7.1.3, the license granted by Curis to Debiopharm under
Section 2.1 shall terminate and revert to Curis on the effective date of termination. 

  

	13.5	Any termination of this Agreement shall be without prejudice to any rights or obligations which have accrued to any Party prior to such termination. Without limiting
the generality of the foregoing, termination of this Agreement shall not preclude either Party from claiming any other damages, compensation or relief that it may be entitled to hereunder. 

  

	13.6	The license granted to Debiopharm under this Agreement will be deemed a license of rights to intellectual property for purposes of Section 365(n) of the U.S.
Bankruptcy Code, and, in the event of Curis’ bankruptcy, Debiopharm will retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code. 

  

	14	NON COMPETITION 

  

	14.1	Curis agrees not to develop in parallel an Hsp90 Inhibitor (or product containing an Hsp90 Inhibitor) and which is in competition to the Compound or Product because of
its ability to bind to, and selectively and specifically inhibit, Hsp90. [**]. 

  

	14.2	Such obligations in favor of Debiopharm under Section 14.1 shall not survive an early termination of this Agreement except in the case of any material breach by
Curis, in which case they shall survive for two (2) years after termination of this Agreement. 

  

	15	SURVIVING PROVISIONS 

 Sections 6.7, 8.4 and 11.2 and Articles 1, 9, 10, 13, 14 (as set forth in Section 14.2), 15, 16, 18, 19, 20 and 22 shall survive termination or expiration of this Agreement. In addition, if the license granted to Debiopharm under
Section 2.1 survives termination as set forth in Section 13.3, Sections 6.3, 6.4, 6.5 and 6.6 shall survive such termination. 
  

	16	NOTICES 

 Notices
required or permitted to be made or given to either Party hereto pursuant to this Agreement shall be sufficiently made or given on the date of mailing if sent to such Party by certified or registered mail, postage prepaid, addressed to it at its
address set forth or to such other address as it shall designate in the course of this Agreement by written notice to the other Party as follows: 
 If to Curis: 
 Curis, Inc. 
 45 Moulton Street 
 Cambridge, MA 02138 
 USA 
 Attention: Chief Executive Officer 
  

  
 Page 36 of 45 

 If to Debiopharm: 
 Debiopharm S.A. 
 Forum «après-demain» 
 Chemin Messidor 5-7 
 1006 Lausanne 
 Switzerland 
 Attention: Director, Legal Affairs 
  

	17	INDEPENDENT CONTRACTOR 

 The relationship of Debiopharm and Curis under this Agreement is intended to be that of an independent contractor. Nothing contained in this Agreement is intended or is to be construed so as to constitute the Parties as partners or joint
venturers or either Party as an agent or employee of the other. Neither Party has any express or implied right or authority under this Agreement to assume or create any obligations on behalf of or in the name of the other, or to bind the other Party
to any contract, agreement or undertaking with any Third Party. 
  

	18	COMPLETE AGREEMENT 

 The Parties hereto acknowledge that this Agreement sets forth the entire agreement and understanding of the Parties, and supersedes all prior written or oral agreements or understandings with respect to the subject matter hereof, including
material transfer agreements, if any, and that certain “Addendum to the Confidentiality Agreement dated June 18, 2007,” dated and effective as of August 20, 2008 (the “First Addendum”); but, in any event,
excluding: 
 (a) that certain Confidentiality Agreement between the Parties dated June 18,
2007 (the “Original Confidentiality Agreement”), which shall remain in full force and effect in accordance with its terms; provided, however, that all “Confidential Information” (as defined by the Original
Confidentiality Agreement) of Curis relating to its single targeted Hsp90 Inhibitor programs, including, without limitation, CUDC-305, shall be deemed Confidential Information for purposes of this Agreement; and 
 (b) that certain “Second Addendum to the Confidentiality Agreement dated June 18, 2007,” dated and effective
as of June 11, 2009 (the “Second Addendum”), which shall remain in full force and effect in accordance with its terms; provided, however, that [**] for purposes of this Agreement. 
  

  
 Page 37 of 45 

 In the event of any conflict between the provisions of this Agreement and the provisions of
the Original Confidentiality Agreement or the Second Addendum, this Agreement shall control. No modification of this Agreement shall be deemed to be valid unless in writing and signed by both Parties. 
  

	19	ASSIGNMENT 

 Except
as expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably
withheld); provided, however, that either Party may assign this Agreement and its rights and obligations hereunder without the other Party’s consent: 
  

	 	(a)	in connection with the transfer or sale of all or substantially all of the business of such Party to which this Agreement relates to a Third Party, whether by merger,
sale of stock, sale of assets or otherwise (each, a “Change of Control Transaction”), provided that in the event of a Change of Control Transaction in which the acquiring party is a Third Party, intellectual property rights
of the acquiring party to such Change of Control Transaction that exist prior to the effective time of such Change of Control Transaction or result from an Acquiror Existing Hsp90 Program (as defined in Section 14.1) shall not be included in
the technology licensed hereunder or otherwise subject to this Agreement; or 

  

	 	(b)	to an Affiliate, provided that no such assignment to an Affiliate shall relieve the assigning Party of its obligations hereunder. 

 The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted
assigns of the Parties. Any assignment not in accordance with this Agreement shall be void. 
  

	20	GOVERNING LAW AND DISPUTE RESOLUTION 

  

	20.1	Except as expressly set forth in Section 20.6, this Agreement shall be governed by the laws of England and Wales. 

  

	20.2	The Parties agree that, except as set forth in Section 20.6 below, the procedures set forth in Sections 20.3 through 20.5 shall be the exclusive mechanism for
resolving any dispute, disagreement, controversy or claim arising under, out of or relating to this Agreement and any subsequent amendments of this Agreement, including, without limitation, its formation, validity, binding effect, interpretation,
performance, breach or termination, as well as non contractual claims arising out of the subject matter of this Agreement (“Dispute”). 

  

	20.3	Any Dispute shall be submitted to the appropriate executive officers of the Parties by written notice prior to initiation of any action under Sections 20.4 and 20.5.
Such executive officers shall attempt resolution of the Dispute by good faith negotiation for a period of thirty (30) days from written notice of the Dispute by either Party. Each Party shall appoint one executive officer for such negotiation.

  

	20.4	 If the Parties are unable to resolve a Dispute pursuant to Section 20.3 within sixty (60) days of referring such Dispute to their executive
officers, then, upon the written request

  

  
 Page 38 of 45 

	 	 
of either Party to the other Party, the Parties shall submit the Dispute for commercial mediation in accordance with the then-applicable ADR Rules of the International Chamber of Commerce
(“ICC”). Such mediation will take place in London, England. If there is no agreement as to the selection of such a mediator within twenty (20) days of written request for mediation by either Party or the Dispute is not
resolved by the Parties with the assistance of such a mediator within sixty (60) days of the matter being referred to him/her, then the Dispute shall be settled by arbitration as set out in Section 20.5. 

  

	20.5	If the Dispute is not settled under Section 20.3 and Section 20.4, then, upon the written request of either Party to the other Party, the dispute shall be
resolved by arbitration before a panel of three (3) arbitrators with relevant pharmaceutical industry experience in accordance with the then-applicable arbitration rules of the ICC. One arbitrator shall be chosen by Debiopharm and one
arbitrator shall be chosen by Curis within fifteen (15) days from such written request for initiation of arbitration. The third arbitrator shall be chosen by mutual agreement of the arbitrators selected by the Parties within fifteen
(15) days of the date that the last of the arbitrators selected by the Parties was appointed. The arbitrators shall be instructed to establish a timeline and other parameters for the conduct of discovery and the arbitration hearing that will
reasonably expedite resolution of the Dispute. The arbitration proceedings shall take place in London, England, and both the arbitration proceedings and the arbitrators’ ruling shall be in the English language. In making their decision, the
arbitrators shall apply the laws of England and Wales. The arbitrators shall, within fifteen (15) calendar days after the conclusion of the arbitration hearing, issue a written award and statement of decision describing the essential findings
and conclusions on which the award is based, including the calculation of any damages awarded. The decision or award rendered by the arbitrators shall be final and non-appealable, and judgment may be entered upon it in any court of competent
jurisdiction. Each Party shall bear its own attorney’s fees, costs, and disbursements arising out of the arbitration, and shall pay an equal share of the fees and costs of the arbitrators; provided, however, that the arbitrators shall be
authorized to determine whether a Party is the prevailing party, and if so, to award to that prevailing party reimbursement for any or all of its reasonable attorneys’ fees, costs and disbursements (including, for example, expert witness fees
and expenses, photocopy charges, travel expenses, etc.), and/or the fees and costs of the ICC and the arbitrators. 

  

	20.6	Notwithstanding the foregoing provisions of this Article 20, disputes pertaining to the validity, construction, scope, enforceability, infringement or other violations
of patents or other proprietary or intellectual property rights shall be resolved solely by a court or patent office of competent jurisdiction, and no such claim shall be subject to mediation or arbitration pursuant to this Article 20. In addition,
nothing contained in this Agreement shall deny either Party the right to seek injunctive or other equitable relief from a court of competent jurisdiction in the context of a bona fide emergency or prospective irreparable harm, and such an
action may be filed and maintained notwithstanding any ongoing mediation or arbitration proceeding. 

  

	21	FORCE MAJEURE 

  

	21.1	Neither Party shall be liable for a failure to comply with a provision herein, if it is prevented from performing the said provision because of force majeure, this
notion being defined as an event beyond the control of the Parties and independent from their will including, but not limited to, strikes or other labor trouble, war, insurrection, fire, flood, explosion, discontinuity in supply of power, court
order or governmental interference. 

  

  
 Page 39 of 45 

	21.2	Despite the event of force majeure, either Party hereto shall undertake reasonable efforts to comply to the extent possible with its obligations towards the other
Party, pursuant to this Agreement. 

  

	21.3	The Party invoking an event of force majeure shall notify it forthwith to the other Party, and must specify which one or ones of its obligations it is being prevented
from complying with, and the nature of force majeure, and must give an estimate of the period during which it is likely that it shall be prevented from complying with the said obligation or obligations. 

  

	22	MISCELLANEOUS 

  

	22.1	If any provision of this Agreement should be or become fully or partly invalid or unenforceable for any reason whatsoever or should violate any applicable law, this
Agreement is to be considered divisible as to such provision and such provision is to be deemed deleted from this Agreement, and the remainder of this Agreement shall be valid and binding as if such provision were not included therein. There shall
be substituted for any such provision deemed to be deleted a suitable provision which, as far as is legally possible, comes nearest to the sense and purpose of the stricken provision. 

  

	22.2	Failure by any Party to enforce any term or provision of this Agreement in any specific instance or instances hereunder shall not constitute a waiver by such Party of
any such term or provision, and such Party may enforce such term or provision in any subsequent instance without any limitation or penalty whatsoever. 

  

	22.3	This Agreement is neither expressly nor impliedly made for the benefit of any entity other than the Parties. 

  

	22.4	The headings set forth in this Agreement are for convenience only and do not qualify or affect the terms or conditions of this Agreement. Ambiguities and uncertainties
in this Agreement, if any, shall not be interpreted against either Party, irrespective of which Party may be deemed to have caused the ambiguity or uncertainty to exist. This Agreement has been prepared in the English language, and the English
language shall control its interpretation. In addition, all notices required or permitted to be given hereunder, and all written, electronic, oral or other communications between the Parties regarding this Agreement shall be in the English language.

  

	22.5	No waiver of any right or remedy hereunder shall be effective unless provided in writing executed by the waiving Party. 

  

	22.6	This Agreement may be executed in two (2) counterparts, each of which shall be deemed an original document, and which shall be deemed one instrument.

  

  
 Page 40 of 45 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized
representatives as of the Effective Date. 
  

									
	DEBIOPHARM S.A.:	 		 	CURIS, INC.:
			
	 /s/ Dr. Rolland-Yves Mauvernay
	 		 	 /s/ Daniel R. Passeri

	Dr. Rolland-Yves Mauvernay	 		 	Name:	 	Daniel R. Passeri
	President	 		 		 	Title:	 	President & CEO
					
	Date:	 	     6/08/2009
	 		 	Date:	 	         August 5, 2009

		 		 		 		 	

  

			
	EXHIBIT 1:	 	Compound
	EXHIBIT 2:	 	Curis Patents
	EXHIBIT 3:	 	Development Plan
	EXHIBIT 4:	 	Technology Transfer Plan

  

  
 Page 41 of 45 

 EXHIBIT 1 
 Compound 
 Chemical structure of CUDC-305 

2-(6-(Dimethylamino) benzo[d][1,3]dioxol-5-ylthio)-1-(2-(neopenthylamino)ethyl)-1H-imidazo[4,5-c] pyridine-4-amine 
 

 
  

  
 Page 42 of 45 

 EXHIBIT 2 
 Curis Patents 
  

							
	 Patent Application
 Number
	 	Country	 	Filing	 	Status
	 CUDC-305 – Hsp90 inhibition
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

	 	 	 	 
	 [**]

 
	 	 [**]
  
	 	 [**]
  
	 	 [**]
  

  

  
 Page 43 of 45 

 EXHIBIT 3 
 Development Plan 
 CUDC-305 DEVELOPMENT up to Phase
IIa Study 
  

					
	Task	 	Estimated start	 	Estimated end
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	[**]
	[**]	 	[**]	 	 

  

  
 Page 44 of 45 

 EXHIBIT 4 
 Technology Transfer Plan 
 Curis’ Responsibilities under the
Technology Transfer Plan are as follows: 
 (a) Transfer of Information. As soon as possible but in any event
within 30 days of the Effective Date, Curis shall provide Debiopharm with information existing as of the Effective Date and in Curis’ possession that is reasonably considered to be (whether or not Confidential Information) necessary for the
research, development and manufacturing of the Product, without limitation, information relating to the chemical or molecular structure, synthesis route, manufacturing, formulation, preclinical data (e.g., PK, ADME and toxicology), records of
interactions with regulatory authorities, drafts of regulatory filings, drafts of clinical protocols and reports on the Product within the scope of the licenses granted to Debiopharm under the Agreement (the “Technology Transfer
Information”). 
 (i) [**] 
 (b) Transfer of GMP Materials. Curis shall transfer GMP and non-GMP materials as requested by Debiopharm in accordance with Section 3.1.1 of the Agreement. 
 (c) Curis Support of Development Plan. Curis shall provide a reasonable amount of ongoing support to Debiopharm’s
performance of the Development Plan for a period of six (6) months from the Effective Date, in accordance with Section 3.1.2 of the Agreement. 
 (d) Technology Transfer Management. The Debiopharm employees who are designated by Debiopharm to receive such Technology Transfer Information and materials (each, a “Designated
Debiopharm Recipient”) are [**] (“Designated Debiopharm Alliance Manager”) and [**] (“Designated Debiopharm Project Manager”). Debiopharm may replace any or all of such Designated
Debiopharm Recipients at any time upon prior written notice to the Curis alliance manager (“Designated Curis Alliance Manager”). The Designated Curis Alliance Manager shall be [**], Curis, Inc., 45 Moulton Street, Cambridge,
MA 02138 USA; [**]. 
  

  
 Page 45 of 45

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