On December 5, 2017, the IDT Corporation entered into an Agreement with Abilio (Bill) Pereira, who currently serves as Chief Executive Officer of IDT Corporation subsidiary IDT Telecom Inc. (IDT Telecom). This Agreement provides for the termination, as of December 31, 2017, of the Amended and Restated Employment Agreement, dated January 12, 2015, between IDT Telecom and Mr. Pereira. Pursuant to the Agreement, upon execution of a release, Mr. Pereira will receive $425,000, payable over the course of seven months, and will, commencing on January 1, 2018, serve as President and Chief Operating Officer of the IDT Corporation. The Agreement has an effective date of January 1, 2018 and continues until it is terminated by either the IDT Corporation or Mr. Pereira.