As
filed with the Securities and Exchange Commission on October 16, 2023
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-8
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
IDT
CORPORATION
(Exact
name of registrant as specified in its charter)
Delaware |
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22-3415036 |
(State of Incorporation) |
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(I.R.S. Employer Identification
No.) |
520
Broad Street
Newark,
New Jersey 07102
(973)
438-1000
(Address
of Principal Executive Offices)
IDT
Corporation 2015 Stock Option and Incentive Plan, As Amended and Restated
(Full
Title of the Plan)
Shmuel
Jonas
Chief
Executive Officer
IDT
Corporation
520
Broad Street
Newark,
New Jersey 07102
(973)
438-1000
(Name,
Address and Telephone Number of Agent for Service)
Copies
to:
Joyce
J. Mason, Esq.
General
Counsel
IDT
Corporation
520
Broad Street
Newark,
New Jersey 07102
(973)
438-1000
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Accelerated filer |
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Non-accelerated filer |
☐ |
Smaller reporting company |
☐ |
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Emerging growth company |
☐ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
PART
I
SECTION
10(a) PROSPECTUS
The
documents containing the information specified in Part I of Form S-8 will be sent or given to participants in the IDT Corporation 2015
Stock Option and Incentive Plan, as Amended and Restated, as specified by Rule 428(b)(1) promulgated by the Securities and Exchange Commission
(the “Commission”) under the Securities Act. Such documents are not filed with the Commission, either as part of this Registration
Statement or as prospectuses or prospectus supplements pursuant to Rule 424 (§230.424). These documents and the documents incorporated
by reference in the registration statement pursuant to Item 3 of Part II of this Form, taken together, constitute a prospectus that meets
the requirements of Section 10(a) of the Securities Act.
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
Item
3. Incorporation of Documents by Reference.
The
following documents previously filed with the Securities and Exchange Commission (the “Commission”) by the Registrant, pursuant
to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are incorporated by reference in this Registration
Statement:
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(a) |
The Registrant’s
Annual Report on Form 10-K for the fiscal year ended July 31, 2023, filed with the Commission on October 16, 2023; |
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(c) |
The description of the
Class B common stock, par value $.01 per share (the “Class B Common Stock”), of the Registrant set forth as Item 1 under
the caption “Description of Securities” in the Registrant’s Registration Statement on Form 8-A, filed with the
Commission on May 4, 2001 pursuant to Section 12(b) of the Exchange Act, including any amendment or report filed for the purpose
of updating such information, including Exhibit 4.2 to our 2020 Form 10-K. |
All
documents subsequently filed by the Registrant with the Commission pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act
after the date of this Registration Statement and prior to the filing of a post-effective amendment to this Registration Statement which
indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold, shall be deemed
to be incorporated by reference herein and to be a part hereof from the respective dates of filing of such documents (such documents,
and the documents enumerated above, being hereinafter referred to as “Incorporated Documents”).
Any
statement contained in an Incorporated Document shall be deemed to be modified or superseded for purposes of this Registration Statement
to the extent that a statement contained herein or in any other subsequently filed Incorporated Document modifies or supersedes such
statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part
of this Registration Statement.
Item
4. Description of Securities.
Not
applicable.
Item
5. Interests of Named Experts and Counsel.
Certain
legal matters with respect to the Class B Common Stock have been passed on by Joyce J. Mason, Esq. Ms. Mason is Executive Vice President,
Corporate Secretary and General Counsel of the Registrant and is the beneficial owner of 55,379 shares of Class B Common Stock, consisting
of (a) 36,198 shares of Class B Common Stock held directly, (b) 4,655 shares of Class B Common Stock held by Ms. Mason in her 401(k)
plan account as of August 31, 2023, (c) 1,396 shares of Class B Common Stock purchased through the Company’s Employee Stock Purchase
Program, and (d) 13,130 shares of Class B Common Stock owned by Ms. Mason’s husband. In addition, Ms. Mason directly holds 3,600
deferred stock units (each, a “DSU”). Each DSU is the right to receive between 1/2
of a share and 2 shares of the Company’s Class B common stock. Vesting is 2,400 in February 2024 and 1,200 in February 2025. The
number of shares that will actually vest for each DSU depends on the market price for the Class B common stock as of the relevant vesting
date. 1/2 of a share will be issued for each DSU if the market price on the vesting date is less than $12.705 (50% of the grant date
value of a share of Class B common stock) and 2 shares will be issued for each DSU if the market price on the vesting date is $50.82
(200% of the grant date value) or greater, with a proportionate amount to vest based on thresholds of 62.5%, 75%, 87.5%, 100%, 112.5%,
125%, 137.5%, 150%, 162.5% and 175% of the grant date value. Upon vesting in full, Ms. Jonas will be entitled to receive between 1,800
and 7,200 shares of Class B common stock. Ms. Mason is the sister of Howard Jonas, Chairman of the Board and Chairman of the Registrant,
aunt of Shmuel Jonas, Chief Executive Officer of the Registrant, and the aunt of Liora Stein, a director of the Registrant.
Item
6. Indemnification of Directors and Officers.
The
Registrant’s Certificate of Incorporation provides that, to the extent permitted by the Delaware General Corporation Law (“DGCL”),
directors of the Registrant shall not be personally liable to the Registrant or its stockholders for monetary damages for breach of fiduciary
duty as a director. Section 102(7) of the DGCL, however, states that such a provision may not eliminate or limit the liability of a director
(i) for any breach of the director’s duty of loyalty to the Registrant or its stockholders, (ii) for acts or omissions not in good
faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the DGCL, relating to unlawful
dividends, distributions or the repurchase or redemption of stock or (iv) for any transaction from which the director derives an improper
personal benefit.
The
Registrant’s By-Laws provide that the Registrant shall indemnify and hold harmless, to the fullest extent permitted by the DGCL,
any person against expenses (including attorney’s fees), judgments, fines and amounts paid in settlement, actually and reasonably
incurred in connection with any threatened, pending or completed legal proceedings in which such person is involved by reason of the
fact that he is or was a director, officer, employee or agent of the Registrant (or serving in any such capacity with another business
organization at the request of the Registrant) if he acted in good faith and in a manner that he reasonably believed to be in or not
opposed to the best interests of the Registrant, and, with respect to any criminal action or proceeding, if he had no reasonable cause
to believe that his conduct was unlawful. If the legal proceeding, however, is by or in the right of the Registrant, such director, officer,
employee or agent may not be indemnified in respect of any claim, issue or matter as to which he shall have been adjudged to be liable
to the Registrant unless a court determines otherwise.
Item
7. Exemption from Registration Claimed.
Not
applicable.
Item
8. Exhibits.
Item
9. Undertakings.
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(a) |
The undersigned Registrant
hereby undertakes: |
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(1) |
To file, during any period
in which offers or sales are being made, a post-effective amendment to this Registration Statement: |
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(i) |
To include any prospectus
required by Section 10(a)(3) of the Securities Act of 1933; |
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(ii) |
To reflect in the prospectus
any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement.
Notwithstanding the foregoing, any increase or decrease in the volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering
range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in
the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price
set forth in the “Calculation of Registration Fee” table in the effective Registration Statement; and |
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(iii) |
To include any material
information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change
to such information in the Registration Statement. |
provided,
however, that paragraphs (a)(1)(i) and (a)(1)(ii) will not apply if the information required to be included in a post-effective amendment
by those paragraphs is contained in periodic reports filed with or furnished to the Securities Exchange Commission by the Registrant
pursuant to Section 13 or Section 15(d) of the Exchange Act of 1934 that are incorporated by reference in the Registration Statement.
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(2) |
That, for the purpose of
determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof. |
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(3) |
To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
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(b) |
The undersigned Registrant
hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant’s
annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act of 1934 (and, where applicable, each filing of an employee
benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference
in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
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(c) |
Insofar as indemnification
for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In
the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue. |
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(d) |
The Registrant undertakes
that it will submit the Plan and any amendment thereto to the Internal Revenue Service (“IRS”) in a timely manner and
will make all changes required by the IRS in order to qualify the Plan. |
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that
it meets all of the requirements for filing on Form S-8 and has duly caused this Form S-8 Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Newark, State of New Jersey, on October 16, 2023.
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IDT CORPORATION |
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By: |
/s/ Shmuel
Jonas |
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Shmuel Jonas |
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Chief Executive Officer |
The
undersigned directors and officers hereby constitute and appoint Shmuel Jonas and Marcelo Fischer, and each of them, with full power
to act without the other and with full power of substitution and resubstitution, our true and lawful attorneys-in-fact with full power
to execute in our name in the capacities indicated any and all amendments (including post-effective amendments) to this Registration
Statement and to sign any and all additional registration statements relating to the same offering of securities as this Form S-8 that
are filed pursuant to the requirements of the Securities Act of 1933, and to file the same, with all exhibits thereto and other documents
in connection therewith, with the Securities and Exchange Commission and hereby ratify and confirm that all such attorneys-in fact, or
either of them, or their substitutes shall lawfully do or cause to be done by virtue thereof.
Pursuant
to the requirements of the Securities Act of 1933, as amended, this Form S-8 Registration Statement has been signed by the following
persons in the capacities indicated and on the date indicated.
Signature |
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Titles |
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Date |
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/s/ Shmuel
Jonas |
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Chief Executive Officer
(Principal Executive Officer) |
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October
16, 2023 |
Shmuel Jonas |
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/s/ Howard
S. Jonas |
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Chairman of the Board
and Chairman |
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October
16, 2023 |
Howard S. Jonas |
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/s/ Marcelo
Fischer |
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Chief Financial Officer
(Principal Financial Officer) |
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October
16, 2023 |
Marcelo Fischer |
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/s/ Mitch
Silberman |
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Chief Accounting Officer
and Controller |
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October
16, 2023 |
Mitch Silberman |
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(Principal Accounting Officer) |
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/s/ Liora
Stein |
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Director |
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October
16, 2023 |
Liora Stein |
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/s/ Michael
Chenkin |
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Director |
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October
16, 2023 |
Michael Chenkin |
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/s/ Eric
F. Cosentino |
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Director |
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October
16, 2023 |
Eric F. Cosentino |
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/s/ Judah
Schorr |
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Director |
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October
16, 2023 |
Judah Schorr |
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EXHIBIT
INDEX
Exhibit
4.1
IDT
CORPORATION
2015
STOCK OPTION AND INCENTIVE PLAN
Effective
January 1, 2015 to September 16, 2024
(Amended
and Restated on October 11, 2023)
1.
Purpose; Types of Awards; Construction.
The
purpose of the IDT Corporation 2015 Stock Option and Incentive Plan (the “Plan”) is to provide incentives to officers, employees,
directors and consultants of IDT Corporation (the “Company”), or any subsidiary of the Company which now exists or hereafter
is organized or acquired by the Company, to acquire a proprietary interest in the Company, to continue as officers, employees, directors
or consultants, to increase their efforts on behalf of the Company and to promote the success of the Company’s business. The provisions
of the Plan are intended to satisfy the requirements of Section 16(b) of the Securities Exchange Act of 1934, as amended, and shall be
interpreted in a manner consistent with the requirements thereof.
2.
Definitions.
As
used in this Plan, the following words and phrases shall have the meanings indicated:
(a)
“Agreement” shall mean a written agreement entered into between the Company and a Grantee in connection with an award under
the Plan.
(b)
“Board” shall mean the Board of Directors of the Company.
(c)
“Change in Control” means a change in ownership or control of the Company effected through
(i)
any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than (A) the Company, (B) any trustee
or other fiduciary holding securities under an employee benefit plan of the Company, (C) any corporation or other entity owned, directly
or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of common stock, or (D) directly
or directly by: (i) any person who, immediately prior to the Initial Public Offering, owned more than 25% of the combined voting power
of the Company’s then outstanding voting securities, (ii) one or more trusts solely for the
benefit of such person and/or any Family Member(s) of such person or (iii) one or more entities that are directly or indirectly
controlled by such person or and/or any Family Member(s) of such person or (E) as otherwise reasonably determined by the Committee),
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company (not including in the securities beneficially owned by such person any securities issued or sold directly by the Company
or any of its affiliates other than in connection with the acquisition by the Company or its affiliates of a business) representing 25%
or more of the combined voting power of the Company’s then outstanding voting securities.
(d)
“Class B Common Stock” shall mean shares of Class B Common Stock, par value $.01 per share, of the Company.
(e)
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
(f)
“Committee” shall mean the Compensation Committee of the Board or such other committee as the Board may designate from time
to time to administer the Plan.
(g)
“Company” shall mean IDT Corporation, a corporation incorporated under the laws of the State of Delaware, or any successor
corporation.
(h)
“Continuous Service” means that the provision of services to the Company or a Related Entity in any capacity of officer,
employee, director or consultant is not interrupted or terminated. Continuous Service shall not be considered interrupted in the case
of (i) any approved leave of absence, (ii) transfers between locations of the Company or among the Company, any Related Entity or any
successor in any capacity of officer, employee, director or consultant, or (iii) any change in status as long as the individual remains
in the service of the Company or a Related Entity in any capacity of officer, employee, director or consultant (except as otherwise provided
in the applicable Agreement). An approved leave of absence shall include, without limitation, sick leave, temporary disability, maternity
leave, military leave (including, without limitation, service in the National Guard or the Army Reserves) or any other personal leave
approved by the Committee. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days unless reemployment upon
expiration of such leave is guaranteed by statute or contract.
(i)
“Corporate Transaction” means any of the following transactions:
(i)
a merger or consolidation of the Company with any other corporation or other entity, other than (A) a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of the surviving or parent entity) 80% or more of the combined voting power of the voting
securities of the Company or such surviving or parent entity outstanding immediately after such merger or consolidation or (B) a merger
or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as
defined in the Exchange Act) acquired 25% or more of the combined voting power of the Company’s then outstanding securities; or
(ii)
a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all
of its assets (or any transaction having a similar effect).
(j)
“Deferred Stock Units” mean a Grantee’s rights to receive shares of Class B Common Stock on a deferred basis, subject
to such restrictions, forfeiture provisions and other terms and conditions as shall be determined by the Committee.
(k)
“Disability” shall mean a Grantee’s inability to perform his or her duties with the Company or any of its affiliates
by reason of any medically determinable physical or mental impairment, as determined by a physician selected by the Grantee and acceptable
to the Company.
(l)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.
(m)
“Family Member” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships),
any person sharing the household (other than a tenant or employee), a trust in which these persons have more than 50% of the beneficial
interest, a foundation in which these persons control the management of assets, and any other entity in which these persons own more
than 50% of the voting interests.
(n)
“Fair Market Value” per share as of a particular date shall mean (i) the closing sale price per share of Class B Common Stock
on the national securities exchange on which the Class B Common Stock is principally traded for the last preceding date on which there
was a sale of such Class B Common Stock on such exchange, or (ii) if the shares of Class B Common Stock are then traded in an over-the-counter
market, the average of the high and low trades for the shares of Class B Common Stock in such over-the-counter market for the last preceding
date on which there was a sale of such Class B Common Stock in such market, or (iii) if the shares of Class B Common Stock are not then
listed on a national securities exchange or traded in an over-the-counter market, such value as the Committee, in its sole discretion,
shall determine.
(o)
“Grantee” shall mean a person who receives a grant of Options, Stock Appreciation Rights, Limited Rights, Deferred Stock
Units or Restricted Stock under the Plan.
(p)
“Incentive Stock Option” shall mean any option intended to be, and designated as, an incentive stock option within the meaning
of Section 422 of the Code.
(q)
“Insider” shall mean a Grantee who is subject to the reporting requirements of Section 16(a) of the Exchange Act.
(r)
“Insider Trading Policy” shall mean the Insider Trading Policy of the Company, as may be amended from time to time.
(s)
“Limited Right” shall mean a limited stock appreciation right granted pursuant to Section 10 of the Plan.
(t)
“Non-Employee Director” means a member of the Board or the board of directors of any Subsidiary (other than a Subsidiary
that has either (A) a class of “equity securities” (as defined in Rule 3a11-1 promulgated under the Exchange Act) registered
under the Exchange Act or a similar foreign statute or (B) adopted any stock option plan, equity compensation plan or similar employee
benefit plan in which non-employee directors of such Subsidiary are eligible to participate), in each of clause (A) and (B), who is not
an employee of the Company or any Subsidiary.
(u)
“Non-Employee Director Annual Grant” shall mean an award of shares of Restricted Stock equal to $50,000 based on the average
of the high and the low stock price on the business day prior to the Non-Employee Director Grant Date.
(v)
“Non-Employee Director Grant Date” shall mean January 5 of the applicable year (or the following business day if January
5 is not a business day), or, in the case of a new Non-Employee Director joining the Board, shall mean the date of appointment as a member
of the Board.
(w)
“Nonqualified Stock Option” shall mean any option not designated as an Incentive Stock Option.
(x)
“Option” or “Options” shall mean a grant to a Grantee of an option or options to purchase shares of Class B Common
Stock.
(y)
“Option Agreement” shall have the meaning set forth in Section 6 of the Plan.
(z)
“Option Price” shall mean the exercise price of the shares of Class B Common Stock covered by an Option.
(aa)
“Parent” shall mean any company (other than the Company) in an unbroken chain of companies ending with the Company if, at
the time of granting an award under the Plan, each of the companies other than the Company owns stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other companies in such chain.
(bb)
“Plan” means this IDT Corporation 2015 Stock Option and Incentive Plan, as amended or restated from time to time.
(cc)
“Related Entity” means any Parent, Subsidiary or any business, corporation, partnership, limited liability company or other
entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly.
(dd)
“Related Entity Disposition” means the sale, distribution or other disposition by the Company of all or substantially all
of the Company’s interest in any Related Entity effected by a sale, merger or consolidation or other transaction involving such
Related Entity or the sale of all or substantially all of the assets of such Related Entity.
(ee)
“Restricted Period” shall have the meaning set forth in Section 11(b) of the Plan.
(ff)
“Restricted Stock” means shares of Class B Common Stock issued under the Plan to a Grantee for such consideration, if any,
and subject to such restrictions on transfer, rights of refusal, repurchase provisions, forfeiture provisions and other terms and conditions
as shall be determined by the Committee.
(gg)
“Retirement” shall mean a Grantee’s retirement in accordance with the terms of any tax-qualified retirement plan maintained
by the Company or any of its affiliates in which the Grantee participates.
(hh)
“Rule 16b-3” shall mean Rule 16b-3, as from time to time in effect, promulgated under the Exchange Act, including any successor
to such Rule.
(ii)
“Stock Appreciation Right” shall mean the right, granted to a Grantee under Section 9 of the Plan, to be paid an amount measured
by the appreciation in the Fair Market Value of a share of Class B Common Stock from the date of grant to the date of exercise of the
right, with payment to be made in cash or Class B Common Stock as applicable, as specified in the award or determined by the Committee.
(jj)
“Subsidiary” shall mean any company (other than the Company) in an unbroken chain of companies beginning with the Company
if each of the companies other than the last company in the unbroken chain owns stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other companies in such chain.
(kk)
“Tax Event” shall have the meaning set forth in Section 17 of the Plan.
(ll)
“Ten Percent Stockholder” shall mean a Grantee who at the time an Incentive Stock Option is granted, owns stock possessing
more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary.
3.
Administration.
(a)
The Plan shall be administered by the Committee, the members of which may be composed of “non-employee directors” under Rule
16b-3.
(b)
The Committee shall have the authority in its discretion, subject to and not inconsistent with the express provisions of the Plan, to
administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable
in the administration of the Plan, including, without limitation, the authority to grant Options, Stock Appreciation Rights, Limited
Rights, Deferred Stock Units and Restricted Stock; to determine which Options shall constitute Incentive Stock Options and which Options
shall constitute Nonqualified Stock Options; to determine which Options (if any) shall be accompanied by Limited Rights; to determine
the Option Price for each Option; to determine the persons to whom, and the time or times at which awards shall be granted; to determine
the number of shares to be covered by each award; to interpret the Plan and any award under the Plan; to reconcile any inconsistent terms
in the Plan or any award under the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the
terms and provisions of the Agreements (which need not be identical) and to cancel or suspend awards, as necessary; and to make all other
determinations deemed necessary or advisable for the administration of the Plan.
(c)
All decisions, determination and interpretations of the Committee shall be final and binding on all Grantees of any awards under this
Plan. No member of the Board or Committee shall be liable for any action taken or determination made in good faith with respect to the
Plan or any award granted hereunder.
(d)
The Committee may delegate to one or more executive officers of the Company the authority to (i) grant awards under the Plan to employees
of the Company and its Subsidiaries who are not executive officers or a member of the Board, (ii) execute and deliver documents or take
such other ministerial actions on behalf of the Committee with respect to awards and (iii) to make interpretations of the Plan. The grant
of authority in this Section 3(d) shall be subject to such conditions and limitations as may be determined by the Committee. If the Committee
delegates authority to any such executive officer or executive officers of the Company pursuant to this Section 3(d), and such executive
officer or executive officers grant awards pursuant to such delegated authority, references in this Plan to the “Committee”
as they relate to such awards shall be deemed to refer to such executive officer or executive officers, as applicable.
4.
Eligibility.
Awards
may be granted to officers, employees, members of the Board and consultants of the Company or of any Subsidiary. In addition to any other
awards granted to Non-Employee Directors hereunder, awards shall be granted to Non-Employee Directors pursuant to Section 14 of the Plan.
In determining the persons to whom awards shall be granted and the number of shares to be covered by each award, the Committee shall
take into account the duties of the respective persons, their present and potential contributions to the success of the Company and such
other factors as the Committee shall deem relevant in connection with accomplishing the purposes of the Plan.
5.
Stock.
(a)
The maximum number of shares of Class B Common Stock reserved for the grant of awards under the Plan shall be 2,030,000, all of which
may be granted as Incentive Stock Options, subject to adjustment as provided in Section 12 of the Plan. Such shares may, in whole or
in part, be authorized but unissued shares or shares that shall have been or may be reacquired by the Company.
(b)
If any outstanding award under the Plan should, for any reason expire, be canceled or be forfeited (other than in connection with the
exercise of a Stock Appreciation Right or a Limited Right), without having been exercised in full, the shares of Class B Common Stock
allocable to the unexercised, canceled or terminated portion of such award shall (unless the Plan shall have been terminated) become
available for subsequent grants of awards under the Plan, unless otherwise determined by the Committee.
6.
Terms and Conditions of Options.
(a)
OPTION AGREEMENT. Each Option granted pursuant to the Plan shall be evidenced by a written agreement between the Company and the Grantee
(the “Option Agreement”), in such form and containing such terms and conditions as the Committee shall from time to time
approve, which Option Agreement shall comply with and be subject to the following terms and conditions, unless otherwise specifically
provided in such Option Agreement. For purposes of interpreting this Section 6, a director’s service as a member of the Board or
a consultant’s service shall be deemed to be employment with the Company.
(b)
NUMBER OF SHARES. Each Option Agreement shall state the number of shares of Class B Common Stock to which the Option relates.
(c)
TYPE OF OPTION. Each Option Agreement shall specifically state that the Option constitutes an Incentive Stock Option or a Nonqualified
Stock Option. In the absence of such designation, the Option will be deemed to be a Nonqualified Stock Option.
(d)
OPTION PRICE. Each Option Agreement shall state the Option Price, which, in the case of an Incentive Stock Option, shall not be less
than one hundred percent (100%) of the Fair Market Value of the shares of Class B Common Stock covered by the Option on the date of grant.
The Option Price shall be subject to adjustment as provided in Section 12 of the Plan.
(e)
MEDIUM AND TIME OF PAYMENT. The Option Price shall be paid in full, at the time of exercise, in cash or in shares of Class B Common Stock
having a Fair Market Value equal to such Option Price or in a combination of cash and Class B Common Stock including a cashless exercise
procedure through a broker-dealer; provided, however, that in the case of an Incentive Stock Option, the medium of payment shall be determined
at the time of grant and set forth in the applicable Option Agreement.
(f)
TERM AND EXERCISABILITY OF OPTIONS. Each Option Agreement shall provide the exercisability schedule for the Option as determined by the
Committee, provided, that, the Committee shall have the authority to accelerate the exercisability of any outstanding Option at such
time and under such circumstances as it, in its sole discretion, deems appropriate. The exercise period will be ten (10) years from the
date of the grant of the Option unless otherwise determined by the Committee; provided, however, that in the case of an Incentive Stock
Option, such exercise period shall not exceed ten (10) years from the date of grant of such Option. The exercise period shall be subject
to earlier termination as provided in Sections 6(g) and 6(h) of the Plan. An Option may be exercised, as to any or all full shares of
Class B Common Stock as to which the Option has become exercisable, by written notice delivered in person, by mail, e-mail, fax or overnight
delivery to the Company’s transfer agent or other administrator designated by the Company, specifying the number of shares of Class
B Common Stock with respect to which the Option is being exercised.
(g)
TERMINATION. Except as provided in this Section 6(g) and in Section 6(h) of the Plan, an Option may not be exercised unless the Grantee
is then in the employ of or maintaining a director or consultant relationship with the Company or a Subsidiary thereof (or a company
or a Parent or Subsidiary of such company issuing or assuming the Option in a transaction to which Section 424(a) of the Code applies),
and unless the Grantee has remained in Continuous Service with the Company or any Subsidiary since the date of grant of the Option unless
otherwise determined by the Committee. In the event that the employment or consultant relationship of a Grantee shall terminate (other
than by reason of death, Disability or Retirement), all Options of such Grantee that are exercisable at the time of Grantee’s termination
may, unless earlier terminated in accordance with their terms, be exercised within 180 days after the date of termination (or such different
period as the Committee shall prescribe).
(h)
DEATH, DISABILITY OR RETIREMENT OF GRANTEE. If a Grantee shall die while employed by, or maintaining a director or consultant relationship
with, the Company or a Subsidiary thereof, or within thirty (30) days after the date of termination of such Grantee’s employment,
director or consultant relationship (or within such different period as the Committee may have provided pursuant to Section 6(g) of the
Plan), or if the Grantee’s employment, director or consultant relationship shall terminate by reason of Disability, all Options
theretofore granted to such Grantee (to the extent otherwise exercisable) may, unless earlier terminated in accordance with their terms,
be exercised by the Grantee or by the Grantee’s estate or by a person who acquired the right to exercise such Options by bequest
or inheritance or otherwise by result of death or Disability of the Grantee, at any time within 180 days after the death or Disability
of the Grantee (or such different period as the Committee shall prescribe). In the event that an Option granted hereunder shall be exercised
by the legal representatives of a deceased or former Grantee, written notice of such exercise shall be accompanied by a certified copy
of letters testamentary or equivalent proof of the right of such legal representative to exercise such Option. In the event that the
employment or consultant relationship of a Grantee shall terminate on account of such Grantee’s Retirement, all Options of such
Grantee that are exercisable at the time of such Retirement may, unless earlier terminated in accordance with their terms, be exercised
at any time within one hundred eighty (180) days after the date of such Retirement (or such different period as the Committee shall prescribe).
All unvested Options shall be terminated upon death, disability or retirement, unless otherwise determined by the Committee.
(i)
OTHER PROVISIONS. The Option Agreements evidencing awards under the Plan shall contain such other terms and conditions not inconsistent
with the Plan as the Committee may determine.
7.
Nonqualified Stock Options.
Options
granted pursuant to this Section 7 are intended to constitute Nonqualified Stock Options and shall be subject only to the general terms
and conditions specified in Section 6 of the Plan.
8.
Incentive Stock Options.
Options
granted pursuant to this Section 8 are intended to constitute Incentive Stock Options and shall be subject to the following special terms
and conditions, in addition to the general terms and conditions specified in Section 6 of the Plan:
(a)
LIMITATION ON VALUE OF SHARES. To the extent that the aggregate Fair Market Value of shares of Class B Common Stock subject to Options
designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year (under all plans
of the Company or any Subsidiary) exceeds $100,000, such excess Options, to the extent of the shares covered thereby in excess of the
foregoing limitation, shall be treated as Nonqualified Stock Options. For this purpose, Incentive Stock Options shall be taken into account
in the order in which they were granted, and the Fair Market Value of the shares of Class B Common Stock shall be determined as of the
date that the Option with respect to such shares was granted.
(b)
TEN PERCENT STOCKHOLDER. In the case of an Incentive Stock Option granted to a Ten Percent Stockholder, (i) the Option Price shall not
be less than one hundred ten percent (110%) of the Fair Market Value of the shares of Class B Common Stock on the date of grant of such
Incentive Stock Option, and (ii) the exercise period shall not exceed five (5) years from the date of grant of such Incentive Stock Option.
9.
Stock Appreciation Rights.
The
Committee shall have authority to grant a Stock Appreciation Right, either alone or in tandem with any Option. A Stock Appreciation Right
granted in tandem with an Option shall, except as provided in this Section 9 or as may be determined by the Committee, be subject to
the same terms and conditions as the related Option. Each Stock Appreciation Right granted pursuant to the Plan shall be evidenced by
a written Agreement between the Company and the Grantee in such form as the Committee shall from time to time approve, which Agreement
shall comply with and be subject to the following terms and conditions, unless otherwise specifically provided in such Agreement:
(a)
TIME OF GRANT. A Stock Appreciation Right may be granted at such time or times as may be determined by the Committee.
(b)
PAYMENT. A Stock Appreciation Right shall entitle the holder thereof, upon exercise of the Stock Appreciation Right or any portion thereof,
to receive payment of an amount computed pursuant to Section 9(d) of the Plan.
(c)
EXERCISE. A Stock Appreciation Right shall be exercisable at such time or times and only to the extent determined by the Committee, and
will not be transferable. A Stock Appreciation Right granted in connection with an Incentive Stock Option shall be exercisable only if
the Fair Market Value of a share of Class B Common Stock on the date of exercise exceeds the purchase price specified in the related
Incentive Stock Option. Unless otherwise approved by the Committee, no Grantee shall be permitted to exercise any Stock Appreciation
Right during the period beginning two weeks prior to the end of each of the Company’s fiscal quarters and ending on the second
business day following the day on which the Company releases to the public a summary of its fiscal results for such period.
(d)
AMOUNT PAYABLE. Upon the exercise of a Stock Appreciation Right, the Optionee shall be entitled to receive an amount determined by multiplying
(i) the excess of the Fair Market Value of a share of Class B Common Stock on the date of exercise of such Stock Appreciation Right over
the exercise or other base price of the Stock Appreciation Right or, if applicable, the Option Price of the related Option, by (ii) the
number of shares of Class B Common Stock as to which such Stock Appreciation Right is being exercised.
(e)
TREATMENT OF RELATED OPTIONS AND STOCK APPRECIATION RIGHTS UPON EXERCISE. Upon the exercise of a Stock Appreciation Right, the related
Option, if any, shall be canceled to the extent of the number of shares of Class B Common Stock as to which the Stock Appreciation Right
is exercised. Upon the exercise or surrender of an Option granted in connection with a Stock Appreciation Right, the Stock Appreciation
Right shall be canceled to the extent of the number of shares of Class B Common Stock as to which the Option is exercised or surrendered.
(f)
METHOD OF EXERCISE. Stock Appreciation Rights shall be exercised by a Grantee only by a written notice delivered to the Company in accordance
with procedures specified by the Company from time to time. Such notice shall state the number of shares of Class B Common Stock with
respect to which the Stock Appreciation Right is being exercised. A Grantee may also be required to deliver to the Company the underlying
Agreement evidencing the Stock Appreciation Right being exercised and any related Option Agreement so that a notation of such exercise
may be made thereon, and such Agreements shall then be returned to the Grantee.
(g)
FORM OF PAYMENT. Payment of the amount determined under Section 9(d) of the Plan may be made solely in whole shares of Class B Common
Stock in a number based upon their Fair Market Value on the date of exercise of the Stock Appreciation Right or, alternatively, at the
sole discretion of the Committee, solely in cash, or in a combination of cash and shares of Class B Common Stock as the Committee deems
advisable. If the Committee decides to make full payment in shares of Class B Common Stock and the amount payable results in a fractional
share, payment for the fractional share will be made in cash.
10.
Limited Stock Appreciation Rights.
The
Committee shall have authority to grant a Limited Right, either alone or in tandem with any Option. Each Limited Right granted pursuant
to the Plan shall be evidenced by a written Agreement between the Company and the Grantee in such form as the Committee shall from time
to time approve, which Agreement shall comply with and be subject to the following terms and conditions, unless otherwise specifically
provided in such Agreement:
(a)
TIME OF GRANT. A Limited Right may be granted at such time or times as may be determined by the Committee.
(b)
EXERCISE. A Limited Right may be exercised only (i) during the ninety-day period following the occurrence of a Change in Control or (ii)
immediately prior to the effective date of a Corporate Transaction. A Limited Right shall be exercisable at such time or times and only
to the extent determined by the Committee, and will not be transferable except to the extent any related Option is transferable or as
otherwise determined by the Committee. A Limited Right granted in connection with an Incentive Stock Option shall be exercisable only
if the Fair Market Value of a share of Class B Common Stock on the date of exercise exceeds the purchase price specified in the related
Incentive Stock Option.
(c)
AMOUNT PAYABLE. Upon the exercise of a Limited Right, the Grantee thereof shall receive in cash whichever of the following amounts is
applicable:
(i)
in the case of the realization of Limited Rights by reason of an acquisition of common stock described in clause (i) of the definition
of “Change in Control” (Section 2(c) of this Plan), an amount equal to the Acquisition Spread as defined in Section 10(d)(ii)
below; or
(ii)
in the case of the realization of Limited Rights by reason of stockholder approval of an agreement or plan described in clause (i) of
the definition of “Corporate Transaction” (Section 2(j) of this Plan), an amount equal to the Merger Spread as defined in
Section 10(d)(iv) below; or
(iii)
in the case of the realization of Limited Rights by reason of the change in composition of the Board described in clause (ii) of the
definition of “Change in Control” or stockholder approval of a plan or agreement described in clause (ii) of the definition
of Corporate Transaction, an amount equal to the Spread as defined in Section 10(d)(v) of this Plan.
Notwithstanding
the foregoing provisions of this Section 10(c) (or unless otherwise approved by the Committee), in the case of a Limited Right granted
in respect of an Incentive Stock Option, the Grantee may not receive an amount in excess of the maximum amount that will enable such
option to continue to qualify under the Code as an Incentive Stock Option.
(d)
DETERMINATION OF AMOUNTS PAYABLE. The amounts to be paid to a Grantee pursuant to Section 10(c) of this Plan shall be determined as follows:
(i)
The term “Acquisition Price per Share” as used herein shall mean, with respect to the exercise of any Limited Right by reason
of an acquisition of Class B Common Stock described in clause (i) of the definition of Change in Control, the greatest of (A) the highest
price per share shown on the Statement on Schedule 13D or amendment thereto filed by the holder of 25% or more of the voting power of
the Company that gives rise to the exercise of such Limited Right, (B) the highest price paid in any tender or exchange offer which is
in effect at any time during the ninety-day period ending on the date of exercise of the Limited Right, or (C) the highest Fair Market
Value per share of Class B Common Stock during the ninety day period ending on the date the Limited Right is exercised.
(ii)
The term “Acquisition Spread” as used herein shall mean an amount equal to the product computed by multiplying (A) the excess
of (1) the Acquisition Price per Share over (2) the exercise or other base price of the Limited Right or, if applicable, the Option Price
per share of Class B Common Stock at which the related Option is exercisable, by (B) the number of shares of Class B Common Stock with
respect to which such Limited Right is being exercised.
(iii)
The term “Merger Price per Share” as used herein shall mean, with respect to the exercise of any Limited Right by reason
of stockholder approval of an agreement described in clause (i) of the definition of Corporate Transaction, the greatest of (A) the fixed
or formula price for the acquisition of shares of Class B Common Stock specified in such agreement, if such fixed or formula price is
determinable on the date on which such Limited Right is exercised, (B) the highest price paid in any tender or exchange offer which is
in effect at any time during the ninety-day period ending on the date of exercise of the Limited Right, (C) the highest Fair Market Value
per share of Class B Common Stock during the ninety-day period ending on the date on which such Limited Right is exercised.
(iv)
The term “Merger Spread” as used herein shall mean an amount equal to the product. computed by multiplying (A) the excess
of (1) the Merger Price per Share over (2) the exercise or other base price of the Limited Right or, if applicable, the Option Price
per share of Class B Common Stock at which the related Option is exercisable, by (B) the number of shares of Class B Common Stock with
respect to which such Limited Right is being exercised.
(v)
The term “Spread” as used herein shall mean, with respect to the exercise of any Limited Right by reason of a change in the
composition of the Board described in clause (ii) of the definition of Change in Control or stockholder approval of a plan or agreement
described in clause (ii) of the definition of Corporate Transaction, an amount equal to the product computed by multiplying (i) the excess
of (A) the greater of (1) the highest price paid in any tender or exchange offer which is in effect at any time during the ninety-day
period ending on the date of exercise of the Limited Right or (2) the highest Fair Market Value per share of Class B Common Stock during
the ninety day period ending on the date the Limited Right is exercised over (B) the exercise or other base price of the Limited Right
or, if applicable, the Option Price per share of Class B Common Stock at which the related Option is exercisable, by (ii) the number
of shares of Class B Common Stock with respect to which the Limited Right is being exercised.
(e)
TREATMENT OF RELATED OPTIONS AND LIMITED RIGHTS UPON EXERCISE. Upon the exercise of a Limited Right, the related Option, if any, shall
cease to be exercisable to the extent of the shares of Class B Common Stock with respect to which such Limited Right is exercised but
shall be considered to have been exercised to that extent for purposes of determining the number of shares of Class B Common Stock available
for the grant of future awards pursuant to this Plan. Upon the exercise or termination of a related Option, if any, the Limited Right
with respect to such related Option shall terminate to the extent of the shares of Class B Common Stock with respect to which the related
Option was exercised or terminated.
(f)
METHOD OF EXERCISE. To exercise a Limited Right, the Grantee shall (i) deliver written notice to the Company specifying the number of
shares of Class B Common Stock with respect to which the Limited Right is being exercised, and (ii) if requested by the Committee, deliver
to the Company the Agreement evidencing the Limited Rights being exercised and, if applicable, the Option Agreement evidencing the related
Option; the Company shall endorse thereon a notation of such exercise and return such Agreements to the Grantee. The date of exercise
of a Limited Right that is validly exercised shall be deemed to be the date on which there shall have been delivered the instruments
referred to in the first sentence of this Section 10(f).
11.
Restricted Stock.
The
Committee may award shares of Restricted Stock to any eligible employee, director or consultant of the Company or of any Subsidiary.
Each award of Restricted Stock under the Plan shall be evidenced by a written Agreement between the Company and the Grantee, in such
form as the Committee shall from time to time approve, which Agreement shall comply with and be subject to the following terms and conditions,
unless otherwise specifically provided in such Agreement:
(a)
NUMBER OF SHARES. Each Agreement shall state the number of shares of Restricted Stock to be subject to an award.
(b)
RESTRICTIONS. Shares of Restricted Stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except
by will or the laws of descent and distribution, for such period as the Committee shall determine from the date on which the award is
granted (the “Restricted Period”). The Committee may also impose such additional or alternative restrictions and conditions
on the shares as it deems appropriate including, but not limited to, the satisfaction of performance criteria. Such performance criteria
may include, without limitation, sales, earnings before interest and taxes, return on investment, earnings per share, any combination
of the foregoing or rate of growth of any of the foregoing, as determined by the Committee. The Company may, at its option, maintain
issued shares in book entry form. Certificates, if any, for shares of stock issued pursuant to Restricted Stock awards shall bear an
appropriate legend referring to such restrictions, and any attempt to dispose of any such shares of stock in contravention of such restrictions
shall be null and void and without effect. During the Restricted Period, any such certificates shall be held in a restricted account
a at the transfer agent appointed by the Company. In determining the Restricted Period of an award, the Committee may provide that the
foregoing restrictions shall lapse with respect to specified percentages of the awarded shares on successive anniversaries or other specified
dates of the date of such award.
(c)
FORFEITURE. Subject to such exceptions as may be determined by the Committee, if the Grantee’s Continuous Service with the Company
or any Subsidiary shall terminate for any reason prior to the expiration of the Restricted Period of an award, any shares remaining subject
to restrictions (after taking into account the provisions of Subsection (e) of this Section 11) shall thereupon be forfeited by the Grantee
and transferred to, and retired by, the Company without cost to the Company or such Subsidiary, and such shares shall become available
for subsequent grants of awards under the Plan, unless otherwise determined by the Committee.
(d)
OWNERSHIP. During the Restricted Period, the Grantee shall possess all incidents of ownership of such shares, subject to Subsection (b)
of this Section 11, including the right to receive dividends with respect to such shares and to vote such shares.
(e)
ACCELERATED LAPSE OF RESTRICTIONS. Upon the occurrence of any of the events specified in Section 13 of the Plan (and subject to the conditions
set forth therein), all restrictions then outstanding on any shares of Restricted Stock awarded under the Plan shall lapse as of the
applicable date set forth in Section 13. The Committee shall have the authority (and the Agreement may so provide) to cancel all or any
portion of any outstanding restrictions prior to the expiration of the Restricted Period with respect to any or all of the shares of
Restricted Stock awarded on such terms and conditions as the Committee shall deem appropriate.
11A.
Deferred Stock Units.
The
Committee may award Deferred Stock Units to any outside director, eligible employee or consultant of the Company or of any Subsidiary.
Each award of Deferred Stock Units under the Plan shall be evidenced by a written Agreement between the Company and the Grantee, in such
form as the Committee shall from time to time approve, which Agreement shall comply with and be subject to the following terms and conditions,
unless otherwise specifically provided in such Agreement:
(f)
NUMBER OF SHARES. Each Agreement for Deferred Stock Units shall state the number of shares of Class B Common Stock to be subject to an
award.
(g)
RESTRICTIONS. Deferred Stock Units may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by
will or the laws of descent and distribution, until shares of Class B Common Stock are payable with respect to an award. The Committee
may impose such vesting restrictions and conditions on the payment of shares as it deems appropriate including the satisfaction of performance
criteria. Such performance criteria may include sales, earnings before interest and taxes, return on investment, earnings per share,
any combination of the foregoing or rate of growth of any of the foregoing, as determined by the Committee.
(h)
FORFEITURE. Subject to such exceptions as may be determined by the Committee, if the Grantee’s Continuous Service with the Company
or any Subsidiary shall terminate for any reason prior to the Grantee becoming fully vested in the award, then the Grantee’s rights
under any unvested Deferred Stock Units shall be forfeited without cost to the Company or such Subsidiary.
(i)
OWNERSHIP. Until shares are delivered with respect to Deferred Stock Units, the Grantee shall not possess any incidents of ownership
of such shares, including the right to receive dividends with respect to such shares and to vote such shares.
(j)
ACCELERATED LAPSE OF RESTRICTIONS. Upon the occurrence of any of the events specified in Section 13 of the Plan (and subject to the conditions
set forth therein), all restrictions then outstanding on any Deferred Stock Units awarded under the Plan shall lapse as of the applicable
date set forth in Section 13. The Committee shall have the authority (and the Agreement may so provide) to cancel all or any portion
of any outstanding restrictions prior to the expiration of any restricted period with respect to any or all of the shares of Deferred
Stock Units awarded on such terms and conditions as the Committee shall deem appropriate.
12.
Effect of Certain Changes.
(a)
ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. In the event of any extraordinary liquidating dividend, stock dividend, recapitalization,
merger, consolidation, stock split, warrant or rights issuance, or combination or exchange of such shares, or other similar transactions,
the Committee shall equitably adjust (i) the number of shares of Class B Common Stock available for awards under the Plan, (ii) the number
and/or kind of shares covered by outstanding awards and (iii) the Option Price per share of Options or the applicable market value of
Stock Appreciation Rights or Limited Rights, in each such case so as to reflect such event and preserve the value of such awards; provided,
however, that any fractional shares resulting from such adjustment shall be eliminated. This provision shall not apply to cash dividends
or returns of capital.
(b)
CHANGE IN CLASS B COMMON STOCK. In the event of a change in the Class B Common Stock as presently constituted that is limited to a change
of all of its authorized shares of Class B Common Stock into the same number of shares with a different par value or without par value,
the shares resulting from any such change shall be deemed to be the Class B Common Stock within the meaning of the Plan.
13.
Corporate Transaction; Change in Control; Related Entity Disposition.
(a)
CORPORATE TRANSACTION. In the event of a Corporate Transaction, each award which is at the time outstanding under the Plan shall automatically
become fully vested and exercisable and, in the case of an award of Restricted Stock or an award of Deferred Stock Units, shall be released
from any restrictions on transfer (except with regard to the Insider Trading Policy and such other agreements between the Grantee and
the Company) and repurchase or forfeiture rights, immediately prior to the specified effective date of such Corporate Transaction. Effective
upon the consummation of the Corporate Transaction, all outstanding awards of Options, Stock Appreciation Rights and Limited Rights under
the Plan shall terminate, unless otherwise determined by the Committee. However, all such awards shall not terminate if the awards are,
in connection with the Corporate Transaction, assumed by the successor corporation or Parent thereof.
(b)
CHANGE IN CONTROL. In the event of a Change in Control (other than a Change in Control which is also a Corporate Transaction), each award
which is at the time outstanding under the Plan automatically shall become fully vested and exercisable and, in the case of an award
of Restricted Stock or an award of Deferred Stock Units, shall be released from any restrictions on transfer and repurchase or forfeiture
rights, immediately prior to the specified effective date of such Change in Control.
(c)
RELATED ENTITY DISPOSITION. The Continuous Service of each Grantee (who is primarily engaged in service to a Related Entity at the time
it is involved in a Related Entity Disposition) shall terminate effective upon the consummation of such Related Entity Disposition, and
each outstanding award of such Grantee under the Plan shall become fully vested and exercisable and, in the case of an award of Restricted
Stock or an award of Deferred Stock Units, shall be released from any restrictions on transfer (except with regard to the Insider Trading
Policy and such other agreements between the Grantee and the Company). Unless otherwise determined by the Committee, the Continuous Service
of a Grantee shall not be deemed to terminate (and each outstanding award of such Grantee under the Plan shall not become fully vested
and exercisable and, in the case of an award of Restricted Stock or an award of Deferred Stock Units, shall not be released from any
restrictions on transfer) if (i) a Related Entity Disposition involves the spin-off of a Related Entity, for so long as such Grantee
continues to remain in the service of such entity that constituted the Related Entity immediately prior to the consummation of such Related
Entity Disposition (“SpinCo”) in any capacity of officer, employee, director or consultant or (ii) an outstanding award is
assumed by the surviving corporation (whether SpinCo or otherwise) or its parent entity in connection with a Related Entity Disposition.
(d)
SUBSTITUTE AWARDS. The Committee may grant awards under the Plan in substitution of stock-based incentive awards held by employees, consultants
or directors of another entity who become employees, consultants or directors of the Company or any Subsidiary by reason of a merger
or consolidation of such entity with the Company or any Subsidiary, or the acquisition by the Company or a Subsidiary of property or
equity of such entity, upon such terms and conditions as the Committee may determine, and such awards shall not count against the share
limitation set forth in Section 5 of the Plan.
14.
Non-Employee Director Restricted Stock.
The
provisions of this Section 14 shall apply only to certain grants of Restricted Stock to Non-Employee Directors, as provided below. Except
as set forth in this Section 14, the other provisions of the Plan shall apply to grants of Restricted Stock to Non-Employee Directors
to the extent not inconsistent with this Section. For purposes of interpreting Section 6 of the Plan and this Section 14, a Non-Employee
Director’s service as a member of the Board or the board of directors of any Subsidiary shall be deemed to be employment with the
Company.
(a)
GENERAL. Non-Employee Directors shall receive Restricted Stock in accordance with this Section 14. Restricted Stock granted pursuant
to this Section 14 shall be subject to the terms of such section and shall not be subject to discretionary acceleration of vesting by
the Committee. Unless determined otherwise by the Committee, Non-Employee Directors shall not receive separate and additional grants
hereunder for being a Non-Employee Director of (i) the Company and a Subsidiary or (ii) more than one Subsidiary.
(b)
INITIAL GRANTS OF RESTRICTED STOCK. A Non-Employee Director who first becomes a Non-Employee Director shall receive a pro-rata amount
(based on projected quarters of service to the following Non-Employee Director Grant Date) of a Non-Employee Director Annual Grant on
his date of appointment as a Non-Employee Director.
(c)
ANNUAL GRANTS OF RESTRICTED STOCK. On each Non-Employee Director Grant Date, each Non-Employee Director shall receive a Non-Employee
Director Annual Grant.
(d)
VESTING OF RESTRICTED STOCK. Restricted Stock granted under this Section 14 shall be fully vested on the date of grant.
15.
Period During which Awards May Be Granted.
Awards
may be granted pursuant to the Plan from time to time commencing on January 1, 2015 until September 16, 2024 (ten (10) years from September
17, 2014, the date the Board initially adopted the Plan). No awards shall be effective prior to the approval of the Plan by a majority
of the Company’s stockholders.
16.
Transferability of Awards.
(a)
Incentive Stock Options and Stock Appreciation Rights may not be sold, pledged, assigned, hypothecated, transferred or disposed of in
any manner other than by the laws of descent and distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee
or his or her guardian or legal representative.
(b)
Nonqualified Stock Options shall be transferable in the manner and to the extent acceptable to the Committee, as evidenced by a writing
signed by the Company and the Grantee. Nonqualified Stock Options (together with any Stock Appreciation Rights or Limited Rights related
thereto) shall be transferable by a Grantee as a gift to the Grantee’s “family members” (as defined in Form S-8) under
such terms and conditions as may be established by the Committee; provided that the Grantee receives no consideration for the transfer.
Notwithstanding the transfer by a Grantee of a Nonqualified Stock Option, the transferred Nonqualified Stock Option shall continue to
be subject to the same terms and conditions as were applicable to the Nonqualified Stock Option immediately before the transfer (including,
without limitation, the Insider Trading Policy) and the Grantee will continue to remain subject to the withholding tax requirements set
forth in Section 17 hereof.
(c)
The terms of any award granted under the Plan, including the transferability of any such award, shall be binding upon the executors,
administrators, heirs and successors of the Grantee.
(d)
Restricted Stock shall remain subject to the Insider Trading Policy after the expiration of the Restricted Period. Deferred Stock Units
shall remain subject to the Insider Trading Policy after payment thereof.
17.
Agreement by Grantee regarding Withholding Taxes.
If
the Committee shall so require, as a condition of exercise of an Option, Stock Appreciation Right or Limited Right, the expiration of
a Restricted Period or payment of a Deferred Stock Unit (each, a “Tax Event”), each Grantee shall agree that no later than
the date of the Tax Event, the Grantee will pay to the Company or make arrangements satisfactory to the Committee regarding payment of
any federal, state or local taxes of any kind required by law to be withheld upon the Tax Event. Unless determined otherwise by the Committee,
a Grantee shall permit, to the extent permitted or required by law, the Company to withhold federal, state and local taxes of any kind
required by law to be withheld upon the Tax Event from any payment of any kind due to the Grantee. Unless otherwise determined by the
Committee, any such above-described withholding obligation may, in the discretion of the Company, be satisfied by the withholding by
the Company or delivery to the Company of Class B Common Stock.
18.
Rights as a Stockholder.
Except
as provided in Section 11(d) of the Plan, a Grantee or a transferee of an award shall have no rights as a stockholder with respect to
any shares covered by the award until the date of the issuance of such shares to him or her. No adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property) or distribution of other rights for which the record date
is prior to the date such shares are issued, except as provided in Section 12(a) of the Plan.
19.
No Rights to Employment; Forfeiture of Gains.
Nothing
in the Plan or in any award granted or Agreement entered into pursuant hereto shall confer upon any Grantee the right to continue as
a director of, in the employ of, or in a consultant relationship with, the Company or any Subsidiary or to be entitled to any remuneration
or benefits not set forth in the Plan or such Agreement or to interfere with or limit in any way the right of the Company or any such
Subsidiary to terminate such Grantee’s employment or consulting relationship. Awards granted under the Plan shall not be affected
by any change in duties or position of a Grantee as long as such Grantee continues to be employed by, or in a consultant relationship
with, or a director of the Company or any Subsidiary. The Agreement for any award under the Plan may require the Grantee to pay to the
Company any financial gain realized from the prior exercise, vesting or payment of the award in the event that the Grantee engages in
conduct that violates any non-compete, non-solicitation or non-disclosure obligation of the Grantee under any agreement with the Company
or any Subsidiary, including, without limitation, any such obligations provided in the Agreement.
20.
Beneficiary.
A
Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may,
from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the executor or administrator
of the Grantee’s estate shall be deemed to be the Grantee’s beneficiary.
21.
Authorized Share Approval; Amendment and Termination of the Plan.
(a)
AUTHORIZED SHARE APPROVAL. The Plan was adopted by the Board on September 17, 2014. The Plan was ratified by the Company’s stockholders
on December 15, 2014, with 500,000 shares of Class B Common Stock authorized for awards under the Plan. The Plan shall become effective
on January 1, 2015 and shall terminate on September 16, 2024. The Board amended the Plan on September 24, 2015 and October 13, 2016 to
increase the amount of authorized shares under the Plan to 600,000 and then 700,000, respectively, shares of Class B Common Stock. The
Company’s stockholders ratified such amendments to the Plan on December 14, 2015 and December 14, 2016, respectively. The Board
amended the Plan on September 28, 2017 to increase the amount of authorized shares under the Plan to 1,030,000 shares of Class B Common
Stock and on November 9, 2017 to remove certain provisions related to Section 162(m) of the Code. The Company’s stockholders ratified
such amendments to the Plan on December 14, 2017. The Board amended the Plan on November 15, 2018 to increase the amount of authorized
shares under the Plan to 1,130,000 shares of Class B Common Stock. The Company’s stockholders ratified such amendment to the Plan
on December 13, 2018. The Board further amended the Plan on September 12, 2019 to (i) increase the amount of authorized shares under
the Plan to 1,555,000 shares of Class B Common Stock and (ii) change the Non-Employee Director Annual Grant from 4,000 shares of Restricted
Stock to Restricted Stock equal to $50,000 based on the average of the high and the low stock price on the business day prior to the
Non-Employee Director Grant Date. The Company’s stockholders ratified such amendment to the Plan on December 12, 2019. The Board
further amended the Plan on September 14, 2021 to increase the amount of authorized shares under the Plan to 1,730,000 shares of Class
B Common Stock. The Company’s stockholders ratified such amendment to the Plan on December 15, 2021. The Board further amended
the Plan on October 31, 2022 to increase the amount of authorized shares under the Plan to 1,780,000 shares of Class B Common Stock and
on November 3, 2022 to change the definition of Change in Control. The Company’s stockholders ratified such amendments to the Plan
on December 14, 2022. The Board further amended the Plan on October 11, 2023 to increase the amount of authorized shares under the Plan
to 2,030,000 shares of Class B Common Stock and on November 3, 2022 to change the definition of Change in Control. The Company’s
stockholders ratified such amendments to the Plan on December 13, 2023.
(b)
AMENDMENT AND TERMINATION OF THE PLAN. The Board, or the Committee if so delegated by the Board, at any time and from time to time may
suspend, terminate, modify or amend the Plan; however, unless otherwise determined by the Board, or the Committee if applicable, an amendment
that requires stockholder approval in order for the Plan to continue to comply with any law, regulation or stock exchange requirement
shall not be effective unless approved by the requisite vote of stockholders. Except as provided in Section 13(a) of the Plan, no suspension,
termination, modification or amendment of the Plan may adversely affect any award previously granted, unless the written consent of the
Grantee is obtained.
22.
Governing Law.
The
Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware.
Exhibit 5.1
October
16, 2023
IDT
Corporation
520
Broad Street
Newark,
New Jersey 07102
|
Re: |
IDT Corporation—Registration Statement on
Form S-8 |
Ladies
and Gentlemen:
I
am the General Counsel of IDT Corporation, Inc. (the “Company”), and as such I have been asked to render the following opinion
in connection with the registration statement on Form S-8 (the “Registration Statement”) to be filed with the Securities
and Exchange Commission (the “SEC”) in connection with the registration under the Securities Act of 1933, as amended, of
an aggregate of 300,000 shares of the Company’s Class B common stock, par value $0.01 (the “Class B Common Stock”),
which are reserved for issuance pursuant to the IDT Corporation 2015 Stock Option and Incentive Plan, as Amended and Restated (the “SOP”).
As
your counsel in connection with the Registration Statement, I have examined the SOP, the proceedings taken by you in connection with
the adoption of the SOP, the proceedings taken by you in connection with the amendment and restatement of the SOP and such other documents
and records as I have deemed necessary or advisable to render this Opinion.
Based
upon the foregoing, it is my opinion that the shares of Class B Common Stock to be offered pursuant to the Registration Statement, when
issued and outstanding pursuant to the terms of the SOP, will be validly issued, fully paid and non-assessable.
I
hereby consent to the filing of this Opinion as an exhibit to the Registration Statement.
|
Very truly yours, |
|
|
|
/s/ Joyce
J. Mason |
|
Joyce J. Mason |
|
General Counsel |
Exhibit
23.2
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
have issued our reports dated October 16, 2023 with respect to the consolidated financial statements and internal control over financial
reporting of IDT Corporation included in the Annual Report on Form 10-K for the year ended July 31, 2023, which are incorporated by reference
in this Registration Statement. We consent to the incorporation by reference of the aforementioned reports in this Registration Statement.
/S/
GRANT THORNTON, LLP |
|
|
|
New
York, New York |
|
|
|
October
16, 2023 |
|
Exhibit
107
Calculation
of Filing Fee Table
Form
S-8
(Form
Type)
IDT
CORPORATION
(Exact
Name of Registrant as Specified in its Charter)
Table
1: Newly Registered Securities
Security Type | |
Security
Class Title | |
Fee
Calculation Rule | | |
Amount
Registered (1) | | |
Proposed
Maximum Offering Price Per Unit | | |
Maximum
Aggregate Offering Price | | |
Fee
Rate | | |
Amount of
Registration Fee | |
Equity | |
Class
B Common Stock, par value $0.01 per share | |
| 457(h) | | |
| 300,000 | (2) | |
$ | 27.12 | (3) | |
$ | 8,136,000 | (3) | |
| 0.0001476 | | |
$ | 1,200.88 | |
| |
Total
Offering Amounts | | |
| | | |
$ | 8,136,000 | | |
| | | |
$ | 1,200.88 | |
| |
Total
Fees Previously Paid | | |
| | | |
| | | |
| | | |
| — | |
| |
Total
Fee Offsets | | |
| | | |
| | | |
| | | |
| — | |
| |
Net
Fee Due | | |
| | | |
| | | |
| | | |
$ | 1,200.88 | |
(1) | Pursuant
to Rule 416(a) under the Securities Act of 1933, as amended (the “Securities Act”),
the number of shares being registered shall be adjusted to include such additional indeterminate
number of shares as may be issuable pursuant to the anti-dilution provisions of the IDT Corporation
2015 Stock Option and Incentive Plan, as amended and restated (the “SOP”). In
addition, pursuant to Rule 416(c) under the Securities Act, this registration statement also
covers an indeterminate amount of interests to be offered or sold pursuant to the employee
benefit plans described herein. |
(2) | Represents
shares of Class B Common Stock of the Registrant (“Class B Common Stock”) reserved
for issuance pursuant to the SOP. |
(3) | Estimated
solely for the purpose of calculating the amount of the registration fee pursuant to Rules
457(c) and 457(h) under the Securities Act and based upon the average of the high and low
reported prices of the shares of the Class B Common Stock on the NYSE American on October
12, 2023, a date within five business days prior to
the filing of this Registration Statement. |
Grafico Azioni IDT (NYSE:IDT)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni IDT (NYSE:IDT)
Storico
Da Giu 2023 a Giu 2024