SEC Contract Filing

Filing Date: 2017-12-11

Document Content:
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<TYPE>EX-10.5
<SEQUENCE>3
<FILENAME>f10q1017ex10-5_straightpath.htm
<DESCRIPTION>IDT SETTLEMENT AGREEMENT AND RELEASE, DATED OCTOBER 24, 2017, RELATING TO THE SETTLEMENT OF CLAIMS BETWEEN STRAIGHT PATH COMMUNICATIONS INC. AND IDT CORPORATION
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.5</B></P>

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>CONFIDENTIAL</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>EXECUTION VERSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SETTLEMENT AGREEMENT AND RELEASE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Settlement Agreement
and Release (this &ldquo;<U>Agreement</U> &rdquo;) is made this 24th day of October, 2017, by and among Straight Path Communications
Inc. (&ldquo;<U>Straight Path</U>&rdquo;), IDT Corporation (&ldquo;<U>IDT</U>&rdquo;), PR-SP IP Holdings LLC (&ldquo;<U>Assignee</U>&rdquo;),
and Straight Path IP Group, Inc. (&ldquo;<U>SPIP</U>&rdquo;). Each of Straight Path, IDT, Assignee and SPIP is a &ldquo;<U>Party</U>&rdquo;
under this Agreement, and together they constitute the &ldquo;<U>Parties</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, on July 31, 2013,
IDT and Straight Path entered into a Separation and Distribution Agreement (the &ldquo;<U>Separation Agreement</U>&rdquo;), to
effect a separation of Straight Path and IDT (the &ldquo;<U>Spinoff</U>&rdquo;), which provides in Article VI thereof that, in
certain circumstances, IDT shall indemnify Straight Path and its subsidiaries for certain claims, and in certain other circumstances,
Straight Path shall indemnify IDT and its subsidiaries for certain other claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, on January 11, 2017,
the Enforcement Bureau of the Federal Communications Commission (the &ldquo;<U>FCC</U>&rdquo;) entered into a Consent Decree with
Straight Path and Straight Path Spectrum, LLC (&ldquo;<U>SPS LLC</U>&rdquo;) to resolve an FCC investigation into allegations that
Straight Path and SPS LLC violated the FCC&rsquo;s buildout and discontinuance rules in connection with certain SPS LLC licenses
(the &ldquo;<U>Consent Decree</U>&rdquo;). Among other things, the Consent Decree requires Straight Path and SPS LLC to submit
for cancellation certain of SPS LLC&rsquo;s licenses and pay the FCC certain civil penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, on March 7, 2017,
Straight Path and Charles Frischer, on behalf of the Settlement Class (as defined therein), executed a Memorandum of Understanding
(the &ldquo;<U>MOU</U>&rdquo;) to settle claims asserted on behalf of a putative class against Straight Path concerning allegations
that Straight Path and SPS LLC violated the FCC&rsquo;s buildout and discontinuance rules in connection with certain SPS LLC licenses
(the &ldquo;<U>Securities Claims</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, Straight Path advised
IDT that it intended to assert a claim for indemnification against IDT pursuant to the Separation Agreement for its (and SPS LLC&rsquo;s)
losses (including the payment of civil penalties) arising from or relating to the FCC investigation, the Consent Decree, the Securities
Claims and the MOU.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, IDT has denied that
Straight Path has any basis to be indemnified by IDT for its (or SPS LLC&rsquo;s) losses arising from the FCC investigation, the
Consent Decree, the Securities Claims and the MOU because, among other reasons, (i) the Separation Agreement does not provide for
any indemnification to Straight Path for losses relating to the operation of Straight Path&rsquo;s business, (ii) the conduct resulting
in the Consent Decree was the result of Straight Path&rsquo;s own conduct, (iii) the asserted liabilities are not IDT liabilities
under the terms of the Separation Agreement, and (iv) Straight Path failed to follow the procedure set forth in the Separation
Agreement for any recovery thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, IDT advised
Straight Path that it has incurred certain costs and may incur further costs for which it believes it is entitled to be
indemnified by Straight Path under the Separation Agreement, and would seek to recover those costs by filing counterclaims
against Straight Path in the event Straight Path were to commence litigation or arbitration against IDT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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