Document:

Exhibit 10.1

              MEMORANDUM OF UNDERSTANDING RE: CONTINUING EMPLOYMENT
                                   ARRANGEMENT

From:   Stephen M. Greenberg

To:     Bruce D. Shoulson

Dated:  September 5, 2003

        This is to confirm our understanding that, commencing January 8, 2004,
        you will serve as Senior Legal Advisor to Net2Phone, Inc. under the
        following terms and conditions:

     1. Duties: You will provide legal advice and guidance to the Board of
        Directors and Senior Management of Net2Phone with respect to strategic
        and management matters, major transactions, significant litigation and
        other issues of material importance to the business of Net2Phone as the
        same may arise from time to time. You will also represent Net2Phone's
        interests in the resolution of conflict issues that may arise as the
        result of a merger or other unification of the activities of the legal
        departments of Net2Phone and IDT Corporation.

     2. Time and Place of Performance: It is anticipated that you will be
        available to perform your services an average of eight days each month,
        subject to vacations and holidays. You may render your services in
        person at the Net2Phone offices, or by telephone or on line (for which
        purpose you will have the use of a lap top computer), as you deem to be
        appropriate under the particular circumstances. You will continue to
        have the use of your current office and will be provided with necessary
        support and free parking as in the past.

     3. Compensation: For services rendered you will be paid at the rate of
        $120,000 per annum. Compensation shall be paid bi-weekly in arrears, in
        accordance with Net2Phone's standard payroll practices, and shall be
        subject to all required withholdings.

     4. Fringe and Other Benefits: Under the terms of your existing employment
        agreement dated January 8, 2001 with Net2Phone ("Employment
        Agreement"), Net2Phone is required to continue to provide you and your
        wife with all Welfare Benefits until at least August 12, 2005. Net2Phone
        will of course honor this obligation as well as all of its other
        obligations under the Employment Agreement, it being understood that
        nothing contained herein shall in any way diminish or adversely affect
        your rights or modify or reduce Net2Phone's obligations under the
        Employment Agreement. You will also continue to receive the standard
        monthly automobile allowance paid to Net2Phone Senior Management, shall
        be eligible to participate in the Net2Phone charitable matching gift
        program for the term of this employment arrangement and shall be
        entitled to all indemnification and insurance benefits accorded to all
        other attorneys employed by Net2Phone. It is understood

<PAGE>

        and agreed, that the term of your continued employment shall be
        considered as a continuation of the period of your service under the
        Employment Agreement for purposes of the vesting of your stock options.
        All 401(k) payments made or to be made on your behalf by Net2Phone for
        any period ending on or before January 8, 2004 will be deemed to be
        fully vested as of such date.

     5. Termination: This continued employment arrangement shall continue in
        effect until terminated at the end of any month on or after July 31,
        2004 by either party for any reason upon no less than 30 days prior
        written notice. Any such termination shall be without prejudice to any
        rights that you may have pursuant to your existing Employment Agreement,
        as amended, and the effective date of the termination of this continued
        employment arrangement shall be deemed to be the first day of the
        four-year period following termination of employment during which your
        unexercised options may be exercised. Upon termination of this continued
        employment arrangement, all of your unvested stock options shall
        immediately become vested.

     6. Reimbursement for Expenses: Net2Phone shall reimburse you, in accordance
        with its usual practices, for all reasonable travel and other business
        expenses and disbursements that you may incur in the performance of your
        duties, including professional association dues.

                                                 Net2Phone, Inc.

                                                 By: /s/ Stephen M. Greenberg
                                                    --------------------------
                                                     Stephen M. Greenberg, CEO

Agreed to and Accepted:

/s/ Bruce D. Shoulson
-----------------------
Bruce D. Shoulson<PAGE>

                                                                   Exhibit 10.2

                                    AGREEMENT

THIS AGREEMENT is dated as of the 30th day of January 2004.

BETWEEN: Net2Phone, Inc., ("Net2Phone") a corporation existing under the laws of
         the State of Delaware USA, having its principal place of business at
         520 Broad Street Newark, NJ 07102, USA; and

AND:     Union Telecard Alliance, LLC ("UTA") a limited liability company
         existing under the laws of the State of Delaware, USA, having its
         principal place of business at 44 Cherry Valley Avenue, West Hempstead,
         NY 11552, USA.

IT IS HEREBY AGREED as follows:

1.       Interpretation

1.1      Definitions

         In this Agreement the following terms shall have the following
         meanings:

         "Active Cards" means those Cards with unused minutes that were
         activated within the Effective Period that have not expired or been
         disabled or deactivated pursuant to this Agreement.

         "Cards" means those prepaid disposable calling cards distributed by UTA
         on behalf of Net2Phone.

         "Effective Date" means December 31, 2003 at 11:59 p.m.

         "Effective Period" means the two-year period predating the Effective
         Date.

         "Final Payment" is defined in paragraph 4.5.

         "Inactive Cards" means Cards that were activated prior to January 1,
         2002 at 12:00 a.m.

         "Net Value" means the price that Net2Phone charged UTA for the sale of
         a Card.

         "Reconciliation Date" means December 31, 2005 at 11:59 p.m.

         "Reconciliation Period" means the period between the Effective Date and
         the Reconciliation Date.

         "Return Allowance Reserve" means the monies representing the Net Value
         of all unused Active Cards in the market.

1.2      Construction of Certain References

         In this Agreement where the context admits:

                                       1

<PAGE>

         (a) references to "this Agreement" or to any other agreement or
         document referred to in this Agreement mean this Agreement or such
         other agreement or document as amended, varied, supplemented, modified
         or novated from time to time, and include any schedules;

         (b) references to clause(s) and schedule(s) are references to clause(s)
         and schedule(s) of and to this Agreement; references to paragraphs are,
         unless otherwise stated, references to paragraphs of this Agreement;
         and

         (c) any reference to a "writing" shall include typewriting, printing,
         lithography, photography, telex, facsimile and the printed out version
         of a communication by electronic mail and other modes of representing
         or reproducing words in a legible form.

1.3      Headings

         The headings and sub-headings are inserted for convenience only and
         shall not affect the construction of this Agreement.

2.       Commencement and Duration

2.1      This Agreement shall commence on the Effective Date and expire upon the
         Reconciliation Date and Final Payment.

3.       Payments

3.1      Return Allowance Reserve. Upon execution of this Agreement, Net2Phone
         shall transfer the Return Allowance Reserve to UTA as of the Effective
         Date which the parties agree is $777,989.51. The Return Allowance
         Reserve shall be maintained by UTA in an FDIC insured bank to be
         mutually agreed upon by the parties. In the event of a shortfall in the
         Return Allowance Reserve during the Reconciliation Period, Net2Phone
         will be responsible for such shortfall, such shortfall shall include
         any amounts necessary to reimburse UTA for the expenses set forth in
         Section 3.4 below.

3.2      Accounts Receivable. Upon execution of this Agreement, UTA agrees to
         remit to Net2Phone the sum of $130,955.57 representing open accounts
         receivable due and owing to Net2Phone as of the Effective Date.

3.3      Net Commissions Due. Upon execution of this Agreement, Net2Phone agrees
         to remit to UTA the sum of $4,547.35 representing the net commissions
         due to UTA as of the Effective Date.

3.4      Expenses. Net2Phone agrees to reimburse UTA the sum of $42,608.37
         representing certain expenses that UTA previously incurred in the
         printing and creating of Cards that remained inactive, with such
         reimbursement to be deducted by UTA in calculating the Final Payment.

4.       Reconciliation Period.

4.1      Usage during the Reconciliation Period. On the 1st day of each month
         during the Reconciliation Period, Net2Phone shall report all usage on
         Active Cards for the prior 30-day period. Within fifteen (15) days of
         receipt of the report, UTA shall remit payment to 1.1 Net2Phone
         calculated based upon the Net Value of usage on the Active Cards.
         Payment shall be made from the funds in the Return Allowance Reserve
         and the Return Allowance Reserve shall be reduced by the amount of the
         payment made to Net2Phone.

                                       2

<PAGE>

4.2      Return of Active Cards during the Reconciliation Period. In the event
         UTA seeks to return Active Cards to Net2Phone during the Reconciliation
         Period, UTA shall submit the returns to Net2Phone via the OASIS system.
         Such submission shall contain a list of the Active Cards to be returned
         along with the control numbers. UTA represents and warrants that it
         will only issue returns to customers who have returned a physical card.
         Upon confirmation by Net2Phone that the unused balances remain on the
         returned Active Cards (which confirmation shall be completed within
         five (5) business days of UTA's return submission), UTA shall release
         to itself the Net Value of the returned Active Cards from the Return
         Allowance Reserve. The Return Allowance Reserve shall be reduced by the
         amount of the released funds to UTA.

4.3      Return of Inactive Cards during the Reconciliation Period. In the event
         UTA seeks to return Inactive Cards to Net2Phone during the
         Reconciliation Period, UTA shall submit the returns to Net2Phone via
         the OASIS system. Such submission shall contain a list of the Inactive
         Cards to be returned along with the control numbers. UTA represents and
         warrants that it will only issue returns to customers who have returned
         a physical card. Upon confirmation by Net2Phone that the unused
         balances remain on the returned Inactive Cards (which confirmation
         shall be completed within five (5) business days of UTA's return
         submission), UTA shall be entitled to payment of the Net Value of the
         returned Inactive Cards from Net2Phone. Payment shall be due within
         forty-five (45) days of confirmation by Net2Phone.

4.4      Return of Commissions. In the event UTA returns Active Cards and/or
         Inactive Cards pursuant to paragraphs 4.2 or 4.3, commissions
         originally paid on those Cards by Net2Phone to UTA shall be remitted
         back to Net2Phone by UTA within forty-five (45) days of Net2Phone's
         confirmation of the unused balances on the returned Active Cards and/or
         Inactive Cards.

4.5      Final Payment. On the Reconciliation Date, all remaining Active Cards
         shall be expired and after a final reconciliation between the parties,
         all funds remaining in the Return Allowance Reserve shall be returned
         to Net2Phone by February 15, 2006. ("Final Payment").

4.6      Services Provided by Net2Phone. During the Reconciliation Period and
         provided there has not been an early termination of this Agreement
         pursuant to paragraph 5.1, Net2Phone shall: (a) continue to provide all
         services for the Active Cards; (b) not increase the rates and/or fees
         associated with the Active Cards without the prior written consent of
         UTA; and (c) not expire or cause to be expired any Active Card even if
         it has an earlier expiration date.

5.       Termination

5.1      Either party may terminate this Agreement immediately by giving written
         notice to the other party if such other party:

         (a)      becomes insolvent, is adjudicated bankrupt or compounds with
                  or makes any arrangement with or makes a general assignment
                  for the benefit of its creditors;

         (b)      compulsorily or voluntarily enters into liquidation, except
                  for the purposes of a bona fide reorganization and with the
                  prior written approval of the other party;

                                       3

<PAGE>

         (c)      has a receiver, manager or trustee appointed over the whole or
                  a substantial part of its business or assets;

         (d)      suffers any analogous process, as those listed in (a), (b) and
                  (c) above, under any foreign law;

         (e)      commits any material breach of any of the terms of this
                  Agreement and fails to remedy that breach (if capable of
                  remedy) within five (5) business days after written notice
                  from the other party giving full particulars of the breach and
                  requiring it to be remedied.

5.2      In the event of early termination of this Agreement pursuant to Section
         5.1(e), the parties agree to submit the matter of the disposition of
         the Return Allowance Reserve and the parties rights and obligations
         thereto to the dispute resolution procedures contained in Section 6.11.
         In the event of early termination of this Agreement pursuant to Section
         5.1(a)-(d), the parties agree to submit the matter of the disposition
         of the Return Allowance Reserve and the parties rights and obligations
         thereto to the applicable bankruptcy court, receiver or trustee, as the
         case may be.

6.       Miscellaneous

6.1      Limitation of Liability/Disclaimer of Warranties. Except as set forth
         in this Section 6.1, Net2Phone shall have no liability whatsoever to
         UTA or any third party for any error, act or omission in connection
         with the services provided in the Active Cards. All services provided
         hereunder are provided "as is" with no warranty of any kind. Neither
         party shall be liable for any indirect, punitive, incidental or
         consequential damages of any kind asserted by the other party or any
         third party. Net2Phone's liability shall be limited to a refund of the
         Net Value of the Active Card only for services interruptions caused by
         the gross negligence or wilful misconduct of Net2Phone. In no event
         shall Net2Phone be liable for any claims arising from any alleged
         misrepresentation in the marketing, advertising or branding of the
         Cards by UTA, provided that any such alleged misrepresentation is not
         due to any failure of Net2Phone to provide accurate information to UTA.
         UTA shall defend and indemnify Net2Phone for any claims asserted
         against Net2Phone arising out of any misrepresentation in any
         advertising or marketing of the Cards by UTA, provided that such
         misrepresentation was not due to any failure of Net2Phone to provide
         accurate information to UTA. Notwithstanding this Disclaimer of
         Warranties, Net2Phone will defend and indemnify UTA for any claims
         alleged by third parties of the third party's inability to use the
         services provided by Net2Phone.

6.2      Assignment

         This Agreement shall not be assigned by either party without the prior
         written consent of the other party to this Agreement.

6.3      Entire Agreement

                                       4

<PAGE>

         This Agreement constitutes the whole agreement between the parties and
         supersedes and extinguishes any prior drafts, agreements,
         representations, warranties and arrangements of any nature, whether in
         writing or oral, relating to such subject matter. Any amendments,
         alterations or variations to this Agreement shall be made only in a
         writing agreed to and signed by both parties hereto.

6.4      No Waiver

         No failure to exercise nor any delay in exercising by any party to this
         Agreement of any right, power, privilege or remedy under this Agreement
         shall impair or operate as a waiver thereof in whole or in part.

6.5      No Partnership or Authority

         Nothing in this Agreement shall constitute or be deemed to constitute a
         partnership between the parties nor shall a party be deemed the agent
         of any other party for any purpose.

6.6      Independent Contractor. UTA is an independent contractor and when its
         employees act under the terms of this Agreement, they shall be deemed
         at all times to be under the supervision and responsibility of UTA. No
         person employed by UTA and acting under the terms of this Agreement
         shall be deemed to be acting as agent or employee of Net2Phone for any
         purpose whatsoever.

6.7      Successors

         This Agreement shall be binding upon, and inure to the benefit of, the
         successors, representatives and permitted assigns of the parties
         hereto.

6.8      Invalidity

         If any provision of this Agreement shall be held to be illegal, void,
         invalid or unenforceable under the laws of any jurisdiction, the
         legality, validity and enforceability of the remainder of this
         Agreement in that jurisdiction shall not be affected, and the legality,
         validity and enforceability of the whole of this Agreement shall not be
         affected in any other jurisdiction.

6.9      Notices

         Any notices required to be given under this Agreement or in connection
         with the matters contemplated by it shall, except where otherwise
         specifically provided, be in writing (a) personally delivered, in which
         case it shall be deemed to have been given upon delivery at the
         relevant address, or (b) sent by first class pre-paid post, in which
         case it shall be deemed to have been given two days after the date of
         posting, or (c) sent by recognized overnight courier, in which case it
         shall be deemed to have been given the next day, or (d) sent by
         facsimile, in which case it shall be deemed to have been given when
         dispatched, subject to confirmation of uninterrupted transmission by a
         transmission report, to the following persons of either UTA or
         Net2Phone at the following address:

                                       5

<PAGE>

         FOR NET2PHONE:
         Net2Phone, Inc.
         520 Broad Street, 8th Floor
         Newark, New Jersey 07102
         Attn: General Counsel
         (p) (973) 438-3066
         (f) (973) 438-3100

         FOR UTA:
         Union Telecard Alliance, LLC
         44 Cherry Valley Avenue
         West Hempstead, NY 11552
         Attn:  Joseph Farber
         (p) 516-394-1501 (x113)
         (f) 516-394-1537

6.10     Governing law

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of New Jersey and each of the parties irrevocably
         submits to the exclusive jurisdiction of the federal and state courts
         in New Jersey.

6.11     Dispute Resolution Procedures

         The parties will initially refer all disputes under this Agreement
         (including the disposition of the Return Allowance Reserve in the event
         of an early termination of this Agreement due to a breach) to one or
         more executives appointed from both UTA and Net2Phone. The appointed
         executives will make reasonable attempts to resolve the dispute. In the
         event the executives are unable to resolve a dispute within twenty (20)
         days of a party receiving written notice of a dispute from the other
         party, the parties will submit the matter to binding arbitration
         according to the Commercial Rules of the American Arbitration
         Association and applying the Federal Rules of Evidence. The schedule
         and rules for the arbitration proceedings will be as set by the
         arbitrator(s) and the arbitration proceedings will be held in Newark,
         New Jersey, USA. Each party will bear its own costs of participating in
         the arbitration proceedings.

6.12     Due Authorizations

         Each party represents and warrants to the other party that (a) it has
         all requisite power and authority to execute and deliver this Agreement
         and to perform its obligations hereunder and (b) the individual
         executing this Agreement on behalf of such party is duly authorized to
         execute this Agreement on behalf of such party and to bind such party
         hereby.

                                       6

<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and
delivered as of the date written above.

NET2PHONE, INC.                             UNION TELECARD ALLIANCE, LLC

By: __________________________              By:______________________________
Name: ________________________              Name:____________________________
Title: _______________________              Title: __________________________
Date: ________________________              Date: ___________________________

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]