Document:

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                                                                   EXHIBIT 10.24

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT is made as of August 1, 2002 (this
"Agreement"), between Net2Phone, Inc., a Delaware corporation (the "Company")
and Jonathan Reich (the "Executive").

                              W I T N E S S E T H:

         WHEREAS, the Company wishes to assure itself of the services of the
Executive and the Executive and the Company are willing to enter into an
agreement to that end, upon the terms and conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
covenant and agree as follows:

         1. Employment

         The Company hereby agrees to employ the Executive, and the Executive
hereby agrees to accept employment with the Company, on and subject to the terms
and conditions of this Agreement.

         2. Term

         Unless earlier terminated pursuant to Section 5 hereof, the period of
this Agreement and the Executive's employment hereunder (the "Agreement Term")
shall commence as of the date hereof, (the "Effective Date"), and shall expire
on the third anniversary of the Effective Date; provided, however, that the
Agreement Term shall be automatically extended for an additional year on the
third anniversary of the Effective Date and on each anniversary of the Effective
Date thereafter (each an "Extension Date"), unless written notice of
non-extension is provided by either party to the other party at least 90 days
prior to such anniversary.

         3. Position, Authority and Responsibilities

         (a) The Executive shall serve as, and with the title, office and
authority of, President of Worldwide Sales and Marketing of the Company or such
other senior executive position as may be assigned to him from time to time, and
shall report directly to the Chief Executive Officer.

         (b) The Executive shall have all of the powers, authority, duties and
responsibilities usually incident to the position and office of President of
Worldwide Sales and Marketing and such duties consistent with such position or
such other senior executive position as may be assigned from time to time by the
Chief Executive Officer.

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         (c) The Executive agrees to devote substantially all of his business
time, efforts and skills to the performance of his duties and responsibilities
under this Agreement; provided, however, that nothing in this Agreement shall
preclude the Executive from (i) serving on corporate, civic or charitable boards
or committees, (ii) delivering lectures, fulfilling charitable engagements or
teaching at educational institutions and/or (iii) managing his personal
investments, provided that in any such case that such activities do not
materially interfere with the Executive's performance of his duties and
responsibilities hereunder and do not violate the provisions of Section 10
hereof.

         (d) The Executive shall perform his duties at the principal offices of
the Company located in Newark, New Jersey, but from time to time the Executive
may be required to travel to other locations in the proper conduct of his
responsibilities under this Agreement.

         4. Compensation

         In consideration of the services rendered by the Executive during the
Agreement Term, the Company shall pay or provide the Executive the amounts and
benefits set forth below. Employee is to be considered for future increases in
the salary, bonus and equity incentives described below with due regard for his
position within senior management of the Company and the relationship of such
position to other executive positions.

         (a) Salary. The Company shall pay the Executive an initial annual base
salary (the "Base Salary") of $225,000. The Executive's Base Salary shall be
paid in arrears in substantially equal installments at monthly or more frequent
intervals, in accordance with the normal payroll practices of the Company. The
Executive's Base Salary shall be reviewed at least annually (based upon July 31
fiscal year). by the Chief Executive Officer for consideration of appropriate
merit increases and, once established, the Base Salary shall not be decreased
during the Agreement Term. All reviews shall take into account the time that has
elapsed since any prior adjustment in compensation.

         (b) Bonus Provisions. (i) The Company shall provide the Executive with
an opportunity to earn an annual bonus (the "Annual Bonus") equal to at least
25% of the Base Salary for each fiscal year during the Agreement Term beginning
with the 2003 fiscal year pursuant to a bonus plan to be established by the
Company. The Annual Bonus, if any, shall be paid to the Executive no later than
in the first regular pay period of the Company that occurs after the first
fiscal quarter of the year that immediately follows the year in which the Annual
Bonus was earned, notwithstanding any expiration of this Agreement as of the
last day of such year. (ii) In addition to the Annual Bonus payments, Company
shall pay to Executive the following three special bonuses: A. $25,500.00 on or
before March 15, 2003; B. $42,000.00 on or before October 31, 2003; and C.
$42,000.00 on or before October 31, 2004.

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         (c) Equity Incentives.

                  (i) Except as provided in this Agreement, the treatment of
         options to purchase shares of the Common Stock of the Company ("Common
         Stock") granted to the Executive prior to the Effective Date under the
         Company's stock incentive plans shall be governed by the applicable
         stock option agreements. The Executive shall be eligible, from time to
         time, to receive additional awards of stock options or other equity
         incentives, as determined by the Board.

         (d) Employee Benefits. The Executive shall be entitled to participate
         in all employee benefit plans, programs, practices or other
         arrangements of the Company in which other senior executives of the
         Company are generally eligible to participate from time to time,
         including, without limitation, any qualified or non-qualified pension,
         profit sharing and savings plans, any death benefit and disability
         benefit plans, and any medical, dental, health and welfare plans,
         except to the extent that a separate arrangement is implemented for the
         Executive on terms no less favorable than as provided to the other
         senior executives agreed to by the Executive that is intended to
         replace any such general arrangement. Without limiting the generality
         of the foregoing, (i) the Company shall continue to provide the
         Executive with life insurance coverage with a death benefit that is not
         less than the amount as is in effect as of the Effective Date and (ii)
         the Company shall provide the executive with disability insurance
         coverage consistent with the disability insurance coverage provided to
         other senior executives of the Company.

         (e) Fringe Benefits and Perquisites. The Executive shall be entitled to
         all fringe benefits and perquisites that are generally made available
         to senior executives of the Company from time to time on the same basis
         as is made available to such other executives. Without limiting the
         generality of the foregoing, the Company shall provide the Executive
         with the following:

                  (i) Executive offices and support staff appropriate to the
         Executive's position;

                  (ii) Prompt reimbursement of all reasonable travel and other
         business expenses and disbursements incurred by the Executive in the
         performance of his duties under this Agreement in accordance with the
         Company's normal practices and procedures, including professional
         association dues upon proper accounting therefore;

                  (iii) Paid vacation during each calendar year, to be taken in
         an amount equal to and in accordance with the Company's vacation policy
         for senior executives;

                  (iv) An automobile allowance consistent with the automobile
         allowance policy for the Company's senior executive officers; and

                  (v) Such other fringe benefits as the Executive and the Board
         may mutually agree from time to time.

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         5. Termination of Employment

         The Agreement Term and the Executive's employment hereunder shall be
terminated upon the happening of any of the following events:

                  (a) Termination for Cause. The Company may terminate the
Agreement Term and the Executive's employment hereunder for Cause. For purposes
of this Agreement, "Cause" shall mean:

                  (i) conviction of the Executive, by a court of competent
jurisdiction, of, or Executive's plea of guilty or nolo contendere to, a felony
under the laws of the United States or any state thereof;

                  (ii) misappropriation by the Executive of the Company's funds;
or

                  (iii) the commission by the Executive of an act of proven
fraud with respect to the Company.

         Notwithstanding the foregoing, in no event shall the Company be
considered to have terminated the Executive's employment for "Cause" unless and
until (i) the Executive receives written notice from the Chief Executive Officer
or the Board identifying in reasonable detail the acts or omissions constituting
such "Cause" and the provision of this Agreement relied upon by the Company for
such termination and (ii) such acts or omissions are not cured by the Executive
within 30 days of the Executive's receipt of such notice.

                  (b) Termination other than for Cause. The Chief Executive
Officer shall have the right to terminate the Agreement Term and the Executive's
employment hereunder for any reason at any time, including for any reason that
does not constitute Cause, subject to the consequences of such termination as
set forth in this Agreement.

                  (c) Resignation for Good Reason. The Executive may voluntarily
terminate the Agreement Term and his employment hereunder for Good Reason. For
purposes of this Agreement, "Good Reason" shall mean:

                  (i) any action by the Company that results in a diminution of
the Executive's authority or responsibilities;

                  (ii) any adverse modification of the Executive's positions,
titles or reporting relationships;

                  (iii) any failure by the Company to comply with the
compensation and benefits provisions of Section 4 hereof or any other material
breach of this Agreement by the Company;

                  (iv) the relocation, without the Executive's written consent,
of the Executive's principal office from Newark, New Jersey; or

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                  (v) any failure by the Company to obtain an assumption of this
Agreement by a successor corporation as required under Section 11(a) hereof.

         In no event shall the Executive be considered to have terminated his
employment for "Good Reason" unless and until (i) the Company receives written
notice from the Executive identifying in reasonable detail the acts or omissions
constituting such "Good Reason" and the provision of this Agreement relied upon
by the Executive for such termination, and (ii) such acts or omissions are not
cured by the Company within 30 days of the Company's receipt of such notice.

                  (d) Resignation other than for Good Reason. The Executive may
voluntarily terminate the Agreement Term and his employment hereunder at any
time for any reason, including for any reason that does not constitute Good
Reason by giving the Company 30-days advance written notice of such termination.

                  (e) Disability. The Company may terminate the Agreement Term
and the Executive's employment hereunder upon the Executive's Disability. For
purposes of this Agreement, "Disability" shall mean the inability of the
Executive to perform his duties to the Company on account of physical or mental
illness for a period of six consecutive full months, or for a period of nine
full months during any 18-month period. The Executive's employment shall
terminate in such case on the last day of the applicable period following
written notice by the Company of the election to terminate the Executive's
employment due to the Executive's Disability. Notwithstanding the foregoing, in
no event shall the Executive be terminated by reason of Disability unless the
Executive is eligible to begin receiving long-term disability benefits from a
Company-sponsored long-term disability plan.

                  (f) Death. The Agreement Term and the Executive's employment
hereunder shall terminate upon his death.

         6. Compensation Upon Termination of Employment

         Notwithstanding any provision of this Agreement to the contrary, in the
event the Agreement Term and the Executive's employment by the Company is
terminated, the Executive shall be entitled to the compensation and severance
benefits set forth below:

         (a) Resignation for Good Reason; Termination without Cause. In the
event the Agreement Term and the Executive's employment hereunder is terminated
by the Executive for Good Reason or by the Company for any reason other than for
Cause, Disability or death, the Company shall pay to the Executive and provide
him with the following:

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         (i) Severance Payment. The Company shall continue to pay the Executive,
his then current Base Salary, in accordance with the Company's general payroll
practice, for the greater of (a) one year (two years in the event the
termination by Executive for Good Reason or by the Company for any reason other
than Cause occurs within 6 months following a Change of Control as hereinafter
defined) following such termination or (b) the remainder of the then current
term of this Agreement. In addition, during such period the Executive shall be
entitled to receive annual payments, at the time and in a manner consistent with
the Company's payment of annual bonuses, of an amount equal to the Executive's
then-current Annual Bonus percentage under Section 4(b) hereof, multiplied by
his then-current Base Salary if and only if such bonus would have been earned
under the plan in place immediately prior to the Executive's termination. For
the purposes of this Agreement, "Change in Control" means a change in ownership
or control of the Company effected through any of the following:

            A. any "person," as such term is used in Sections 13(d) and 14(d) of
         the Securities Exchange Act of 1934 (the "Exchange Act") (other than
         (W) the Company, (X) any trustee or other fiduciary holding securities
         under an employee benefit plan of the Company, (Y) 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 (Z) any person who, immediately prior to the date
         hereof, owned or controlled, directly or indirectly, more than 50% of
         the combined voting power of the Company's then outstanding voting
         securities) is or becomes the "beneficial owner" (as defined in Rule
         13d 3 of the Exchange Act), directly or indirectly, of securities of
         the Company representing 50% or more of the combined voting power of
         the Company's then outstanding voting securities.

          B. during any period of not more than two consecutive years, not
         including any period prior to the date hereof, individuals who at the
         beginning of such period constitute the Board, and any new director
         (other than a director whose initial assumption of office is in
         connection with an actual or threatened election contest, including,
         but not limited to a consent solicitation, relating to the election of
         directors of the Company) whose election by the Board or nomination for
         election by the Company's stockholders was approved by a vote of at
         least two-thirds (2/3) of the directors then still in office who either
         were directors at the beginning of the period or whose election or
         nomination for election was previously so approved, cease for any
         reason to constitute at least a majority thereof;

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         C. a merger or consolidation of the Company with any other corporation
         or other entity, other than (X) 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 (Y) a
         merger or consolidation effected to implement a re-capitalization of
         the Company (or similar transaction) in which no "person" (as defined
         in the Exchange Act) acquired 50% or more of the combined voting power
         of the Company's then outstanding securities; or

         D. 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);or

         E. the Company ceases to be publicly owned, i.e, its shares cease to be
         traded in any public market.

                  (ii) Accrued Rights. The Company shall pay the Executive a
lump-sum cash amount, within 10 days of the date of termination, equal to the
sum of (A) his earned but unpaid Base Salary through the date of termination,
(B) any earned but unpaid Annual Bonus for any completed calendar year, and (C)
any unreimbursed business expenses or other amounts due to the Executive from
the Company as of the date of termination. In addition, the Company shall
provide to the Executive all payments, rights and benefits due as of the date of
termination under the terms of the Company's compensation or benefit plans,
programs or awards (together with the lump-sum payment, the "Accrued Rights").

                  (iii) Bonus Rights. The Company shall pay the Executive,
within 10 days of the date of termination, a lump-sum cash amount equal to a pro
rata portion of the Annual Bonus for any partial calendar year of service
through the date of termination (the "Bonus Rights").

                  (iv) Continued Benefits. Subject to Section 8 hereof, for a
two-year period following the date of termination, the Company shall continue to
provide the Executive and his eligible dependents, at its sole cost, with the
medical, dental, disability and life insurance coverages ("Welfare Benefits")
that were provided to the Executive immediately prior to termination of
employment.

                  (v) Stock Options. Notwithstanding the provisions of any stock
incentive plan or award agreement between the Company and the Executive to the
contrary, (i) 100% of the options to purchase Common Stock which are not fully
vested and exercisable as of the date of termination shall become fully vested
and exercisable and (ii) the period during which all non-exercised options held
by Executive shall remain exercisable shall be extended until the tenth
anniversary dates of their respective dates of grant. All such award agreements
shall be amended by the Company and the Executive to reflect the foregoing
provision.

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                  (vi) Life and Disability Insurance. The Company shall fully
fund the life insurance and disability policies described in Section 4(d)
hereof.

                  (vii) Car Allowance. Until the second anniversary of the date
of termination, the Company shall continue to provide the Executive with the
automobile allowance described in Section 4(e)(iv) hereof.

         (b) Resignation without Good Reason; Termination for Cause. In the
event the Executive voluntarily terminates the Agreement Term and his employment
hereunder other than for Good Reason, or in the event the Agreement Term and the
Executive's employment hereunder is terminated by the Company for Cause, the
Company shall pay and provide to the Executive all Accrued Rights and Bonus
Rights to the date of termination and the Executive shall retain any rights that
he has pursuant to any stock option agreement with the Company in accordance
with the terms thereof.

         (c) Disability; Death. In the event the Agreement Term and the
Executive's employment hereunder is terminated by reason of the Executive's
Disability or death, the Company shall pay the Executive (or his legal
representative) and provide him with the following:

                  (i) Severance Payment. The Company shall continue to pay the
Executive, his then current Base Salary, in accordance with the Company's
general payroll practices, for the one-year period following the date of such
termination. In addition, during such one-year period the Executive shall be
entitled to receive one payment, at the time and in a manner consistent with the
Company's payment of annual bonuses, of an amount equal to the Executive's
then-current Annual Bonus percentage under Section 4(b) hereof, multiplied by
his then current Base Salary if and only if such bonus would have been earned
under the plan in place immediately prior to the Executive's termination.

                  (ii) Accrued Rights. The Company shall pay the Executive a
lump-sum cash amount, within 10 days of the date of termination, equal to the
Accrued Rights.

                  (iii) Bonus Rights. The Company shall pay the Executive,
within 10 days of the date of termination, a lump-sum cash amount equal to the
Bonus Rights.

                  (iv) Continued Benefits. Subject to Section 8 hereof, for a
one-year period following the date of termination, the Company shall continue to
provide the Executive and his eligible dependents, at its sole cost, with the
Welfare Benefits that were provided to the Executive immediately prior to
termination of employment.

                  (v) Stock Options. Notwithstanding the provisions of any stock
incentive plan or award agreement between the Company and the Executive to the
contrary, (A) all options to purchase Common Stock which are not fully vested
and exercisable as of the date of termination shall become fully vested and
exercisable and (B) the period during which such options shall be exercisable
shall be extended until the tenth anniversary of the dates of their respective
grants. All such award agreements shall be amended by the Company and the
Executive to reflect the foregoing provision.

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          7. Indemnification

          The Company agrees to provide to the Executive all rights of
  indemnification to the fullest extent permitted by law and by its Certificate
  of Incorporation and By-laws. The Company agrees to maintain directors' and
  officers' insurance for the benefit of Employee providing coverage identical
  to that provided to other executive officers of the Company. The
  indemnification and directors' and officers' coverage shall extend to actions
  and services undertaken or performed by Executive, not only as an employee of
  Company, but as an employee, agent, director or consultant of any other entity
  for which Executive renders services at the request of Company.

          8. No Mitigation or Offset

          The Executive shall not be required to seek other employment or to
reduce any severance benefit payable to him under Section 6 hereof, and no such
severance benefit shall be reduced on account of any compensation received by
the Executive from other employment; provided, however, to the extent that the
Executive becomes eligible to receive welfare benefits pursuant to employee
benefit plans of a new employer that are comparable to the Welfare Benefits that
the Company is obligated to provide to the Executive pursuant to Sections
6(a)(iv) and 6(c)(iv), the Company's obligation to provide such Welfare Benefits
shall cease. The Company's obligations to the Executive under this Agreement,
including, without limitation, any obligation to provide severance benefits,
shall not be subject to set-off or counterclaim in respect of any debts or
liabilities of the Executive to the Company.

         9. Tax Withholding; Method of Payment

         All compensation payable pursuant to this Agreement shall be subject to
reduction by all applicable withholding, social security and other federal,
state and local taxes and deductions for income, employment, excise and other
taxes. Any lump-sum payments provided for in Section 6 hereof shall be made in a
cash payment, net of any required tax withholding, no later than 10 business
days following the Executive's date of termination. Any payment required to be
made to the Executive under this Agreement that is not made in a timely manner
shall bear interest at an interest rate equal to 120% of the monthly compounded
applicable federal rate as in effect under Section 1274(d) of the Code.

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         10. Restrictive Covenants

         (a) Confidential Information. During the Agreement Term and at all
times thereafter, the Executive agrees that he will not divulge to anyone (other
than the Company or any persons employed or designated by the Company) any
knowledge or information of a confidential or proprietary nature relating to the
business of the Company or any of its subsidiaries or affiliates, including,
without limitation, all trade secrets (unless readily ascertainable from public
or published information or trade sources) and confidential commercial
information, and the Executive further agrees not to disclose, publish or make
use of any such knowledge or information without the consent of the Company.

         (b) Non-competition. The Executive acknowledges that (i) the Company is
currently engaged in the business of providing high quality, low-cost telephone
calls over the Internet and related products and services ("Internet
Telephony"), (ii) his work for the company will give him access to trade secrets
of and confidential information concerning the Company, and (iii) the agreements
and covenants contained in this Agreement are essential to protect the business
and goodwill of the Company. Accordingly, the Executive covenants and agrees
that during the Restricted Period (defined below), the Executive shall not,
without the prior written consent of the Company, (1) engage or participate in
the business of developing, managing or operating any Internet Telephony
business (a "Competitive Business") on his own behalf or on behalf of any person
or entity, and the Executive shall not acquire a financial interest in any
Competitive Business (except for publicly traded equity interests that do not
exceed five percent (5%) of such class of equity) or (2) directly or indirectly
solicit or encourage any employee of the Company or any of its affiliates to
leave the employment of the Company or any of its affiliates. For purposes
hereof, the "Restricted Period" shall be the Agreement Term (as may be
terminated pursuant to Section 6 hereof) and, except in the event of a
termination described in Section 6(a) hereof, the 12-month period following any
termination of the Executive's employment hereunder. The provisions of this
paragraph 10 (b) shall supersede and replace any prior non-competition agreement
entered into by Executive with Company.

         (c) Non-disparagement. Executive covenants and agrees that Executive
shall not make or publish any written or oral statements or remarks concerning
the Company including, without limitation, remarks which may be disparaging,
deleterious or damaging to the integrity, reputation or good will of the
Company, its management, board members or employees. Except as may be required
by law or authorized in advance by Company, Executive covenants and agrees that
Executive shall not make or publish any written or oral statements or opinions
regarding Company, including its present and former employees, officers and
directors.

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         (d) Enforcement. The Executive acknowledges and agrees that the Company
will have no adequate remedy at law, and could be irreparably harmed, if the
Executive breaches or threatens to breach any of the provisions of Section 10 of
this Agreement. The Executive agrees that the Company shall be entitled to
equitable and/or injunctive relief to prevent any breach or threatened breach of
this Section 10, and to specific performance of each of the terms of this
Section in addition to any other legal or equitable remedies that the Company
may have. The Executive further agrees that he shall not, in any equity
proceeding relating to the enforcement of the terms of this Section 10, raise
the defense that the Company has an adequate remedy at law.

         11. Successors and Assigns

         (a) This Agreement shall be binding upon and shall inure to the benefit
of the Company, its successors and any person or other entity that succeeds to
all or substantially all of the business, assets or property of the Company. To
the extent not otherwise provided by application of law, the Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation, transfer or otherwise) to all or substantially all of the
business, assets or property of the Company, to expressly assume and agree to
perform the obligations of the Company under this Agreement in the same manner
and to the same extent that the Company is required to perform hereunder. As
used in this Agreement, the "Company" shall mean the Company as hereinbefore
defined and any successor to its business, assets or property as aforesaid which
executes and delivers an agreement provided for in this Section 11(a) or which
otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law. Except as provided by the foregoing provisions of this Section
11(a), this Agreement shall not be assignable by the Company without the prior
written consent of the Executive. In the event that this Agreement is assigned
to any person or entity as may be permitted hereunder, the Company shall be
secondarily liable in the event that any such person or entity shall fail to
satisfy its obligations under Section 4, 6 or 7 hereof.

         (b) This Agreement and all rights of the Executive hereunder shall
inure to the benefit of and be enforceable by the Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive should die while any amounts are due and
payable to the Executive hereunder, all such amounts, unless otherwise provided
herein, shall be paid to the Executive's designated beneficiary or, if there is
no such designated beneficiary, to the legal representatives of the Executive's
estate. This Agreement is personal in nature and the obligations of the
Executive hereunder are not be assignable to any person.

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         12. Entire Agreement/Amendment

         This Agreement contains the entire understanding of the parties with
respect to the subject matter hereof and, except as specifically provided
herein, cancels and supersedes any and all other agreements between the parties
with respect to the subject matter hereof. Any amendment or modification of this
Agreement shall not be binding unless in writing and signed by the parties
hereto.

         13. Severability/No Waiver

         (a) In the event that any provision of this Agreement is determined to
be invalid or unenforceable, the remaining terms and conditions of this
Agreement shall be unaffected and shall remain in full force and effect, and any
such determination of invalidity or unenforceability shall not affect the
validity or enforceability of any other provision of this Agreement.

         (b) The failure of a party to insist upon strict adherence to any term
of this Agreement on any occasion shall not be considered a waiver of such
party's rights or deprive such party of the right thereafter to insist upon
strict adherence to that term or any other term of this Agreement.

         14. Notices

         All notices which may be necessary or proper for either the Company or
the Executive to give to the other shall be in writing and shall be delivered by
hand or sent by registered or certified mail, return receipt requested, or by
air courier, to the Executive at:

                                    Jonathan Reich

                                    [Address]

and shall be sent in the manner described above to the General Counsel of the
Company at the Company's principal executives offices at:

                                    Net2Phone, Inc.
                                    520 Broad Street
                                    Newark, NJ  07102

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and shall be deemed given when dispatched, provided that any notice required
under Section 5 hereof or notice given pursuant to Section 2 hereof shall be
deemed given only when received. Any party may by like notice to the other party
change the address at which he or they are to receive notices hereunder.

         15. Governing Law

         This Agreement shall be governed by and enforceable in accordance with
the laws of the State of New Jersey, without giving effect to the principles of
conflict of laws thereof.

         16. Arbitration

         Except for any action brought under Section 10 which may be brought by
the Company directly in any court of competent jurisdiction, any controversy or
claim arising out of, or related to, this Agreement, or the breach thereof,
shall be settled by binding arbitration in the City of Newark, New Jersey in
accordance with the rules then obtaining of the American Arbitration
Association, and the arbitrator's decision shall be binding and final, and
judgment upon the award rendered may be entered in any court having jurisdiction
thereof.

         17. Legal Fees and Expenses

         The Company shall pay the legal fees and expenses incurred by the
Executive in connection with the negotiation of this Agreement. To provide the
Executive with reasonable assurance that the purposes of this Agreement will not
be frustrated by the cost of its enforcement, the Company shall pay and be
solely responsible for any attorneys' fees and expenses and any court or
arbitration costs incurred by the Executive as a result of a claim that the
Company has breached or otherwise failed to perform this Agreement or any
provision hereof regardless of which party, if any, prevails in the contest.

         18. Counterparts

         This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement
as of the date first written above.

                                            NET2PHONE, INC.

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

                                            Executive

                                                /s/ Jonathan Reich
                                                -------------------------------
                                                Jonathan Reich<PAGE>

                                                                   Exhibit 10.25

                                 Net2Phone, Inc.

                                520 Broad Street

                            Newark, New Jersey 07102

                                             October 29, 2003

IDT Corporation
520 Broad Street
Newark, NJ 07102
Attn:  James A. Courter, CEO

Winstar Communications, LLC
520 Broad Street
Newark, NJ 07102
Attn:  E. Brian Finkelstein, CEO

          Re: Cable Telephony

Dear Jim and Brian:

         I am writing to you with the intent of formalizing the terms of our
ongoing cooperation which began on or about March 15, 2003 and which has
included (i) the joint marketing of our local and long distance telephony
services, facilities and technologies to foreign and domestic cable operators,
(ii) the development of alternative business models and financing vehicles
related to such marketing activities and the sharing of information related
thereto, and (iii) the coordination of our business activities in an effort to
pursue business opportunities in the cable telephony market to our mutual
advantage. This letter agreement sets forth the terms of a formal arrangement
pursuant to which Winstar Communications, LLC, a Delaware limited liability
company ("Winstar"), which is a subsidiary of IDT Corporation, a Delaware
corporation ("IDT"), will provide services to Net2Phone Cable Telephony, LLC, a
Delaware limited liability company ("NCT"), which is a subsidiary of Net2Phone,
Inc., to facilitate NCT's provision of cable telephony service to consumers and
cable operators worldwide.

         1. Overall Structure and Terms. The basic terms of the arrangement are
set forth in the Term Sheet attached hereto as Exhibit A, which is incorporated
herein by reference.

         2. Term Sheet Binding. IDT, WINSTAR and NCT each agree that this letter
agreement is intended to establish a binding agreement between them and agree to
negotiate in good faith towards execution of definitive documentation on the
basis of the terms set forth in the Term Sheet, including an agreement between
Winstar and NCT, an appropriate guaranty agreement between IDT and NCT, an
appropriate guaranty agreement between Net2Phone and IDT and Winstar and an
appropriate security and escrow agreement and other appropriate documents
relating to the Shares as provided for in the Term Sheet, upon the execution of
which this letter agreement shall be terminated. Each party acknowledges that
the other party may incur expenses and take other actions in reliance on the
mutual agreement of the parties to negotiate in good faith as provided in the
immediately preceding sentence.

<PAGE>

         3. Governing Law. This letter agreement shall be governed by and
construed in accordance with the internal laws of the State of New Jersey
applicable to such agreements made and to be performed entirely within such
State.

         4. Agreement and Amendments. This letter agreement constitutes the
understanding and agreement between the parties hereto and their affiliates with
respect to the subject matter herein and supersede all prior or contemporaneous
agreements, representations, warranties and understandings of such parties. No
promise, inducement, representation or agreement, other than as expressly set
forth herein or therein, has been made to or by the parties hereto. This letter
and its exhibits may be amended only by a written agreement signed by the
parties.

         5. Construction. This letter shall be construed according to its fair
meaning and not strictly for or against either party notwithstanding that it may
have been drafted by one party. The captions herein are for convenience only and
shall not be considered a part of this letter agreement for any purpose,
including, without limitation, the construction or interpretation of any
provision hereof.

         7. Beneficiaries. Nothing expressed or implied in this letter is
intended, or shall be construed, to confer upon or give any person or entity
other than the parties hereto and their respective affiliates, successors and
permitted assigns, any rights or remedies under or by reason of this letter.

         8. Counterparts. This letter agreement may be signed in multiple
counterparts, all of which shall together be considered one and the same
agreement.

         9. Enforceability. If any portion or provision of this letter agreement
shall to any extent be declared invalid, illegal or unenforceable by a court,
then the remainder of this letter agreement shall not be affected thereby, and
each portion or provision of this letter agreement shall be valid and
enforceable to the fullest extent permitted by law. Upon such determination that
any portion or provision of this letter agreement is invalid, illegal or
unenforceable, the parties shall negotiate in good faith to modify this letter
agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner to that end that the transaction contemplated
hereby is fulfilled to the fullest extent possible.

                                      * * *

                                       2
<PAGE>

         If you agree with the terms and conditions set forth above, please so
indicate by signing a copy of this letter in the space indicated below and
returning it to us.

                                             Sincerely,

                                             NET2PHONE INC.

                                             By:   /s/ Stephen M. Greenberg
                                                  ------------------------------
                                                  Name: Stephen M. Greenberg
                                                  Title: Chief Executive Officer

                                                 Date: October 29, 2003
                                                      -------------------------

Accepted and Agreed:

IDT CORPORATION

By: /s/ James A. Courter
    --------------------------------
    Name: James A. Courter
    Title: Chief Executive Officer

Date: October 29, 2003
     ------------------------------

WINSTAR COMMUNICATIONS, LLC

By:    /s/ E. Brian Finkelstein
   ----------------------------------
       Name:  E. Brian Finkelstein
       Title: Chief Executive Officer

Date: October 28, 2003
     --------------------------------

                                       3
<PAGE>

                                    Exhibit A
                                    ---------

                                   TERM SHEET

This Term Sheet is attached to a letter agreement between Net2Phone INC.
("Net2Phone"), Winstar Communications, LLC and IDT Corporation, dated October ,
2003, and is subject to all of the terms and conditions thereof.

Scope of Agreement:        Net2Phone Cable Telephony, LLC, a Delaware limited
                           liability company and a wholly-owned subsidiary of
                           Net2Phone (" NCT") and Winstar Communications, LLC, a
                           Delaware limited liability company ("Winstar") which
                           is a subsidiary of IDT Corporation, a Delaware
                           corporation ("IDT"), desire to enter into an
                           agreement to facilitate NCT's provision of cable
                           telephony service to consumers and cable operators
                           worldwide ("Agreement"). Under the Agreement, Winstar
                           will provide NCT, subject to and consistent with the
                           capacity of Winstar's infrastructure, with, among
                           other things, network access, termination,
                           origination and other related services. IDT will
                           guaranty the performance by Winstar of its
                           obligations under the Agreement and will enter into a
                           guaranty agreement with NCT to such effect. To the
                           extent that the Winstar infrastructure is presently
                           unable to support and provide the required services,
                           Winstar shall immediately delegate all or part of its
                           obligations under the Agreement (and assign all or
                           part of its related rights) to IDT or IDT Telecom,
                           Inc., a Delaware corporation, or one or more other
                           direct or indirect IDT subsidiaries (collectively
                           referred to as "IDT Telecom") but only to the extent
                           that IDT or IDT Telecom have the present capacity to
                           carry out such obligations and IDT shall cause such
                           entity or entities to accept such delegation and to
                           render the required services under the terms and
                           conditions provided for herein. No such delegations
                           shall in any way relieve Winstar or IDT of their
                           obligations under the Agreement, and nothing herein
                           shall require Winstar, IDT or IDT Telecom to provide
                           or procure any services that they do not otherwise
                           have the present capacity or capability to provide.

Scope and Mission of
NCT:                       NCT will acquire, develop, design, offer, promote and
                           sell cable telephony systems and services which
                           incorporate the planning and deployment of telephony
                           service, the integration of the network elements and
                           back office systems and processes, the deployment of
                           proprietary real-time service assurance capabilities
                           and the ongoing operational support required to
                           maintain a telephony operation, and will obtain all
                           necessary approvals, certificates and licenses
                           required by applicable law for it to do so. Customers
                           may include cable multiple systems operators
                           ("MSOs"), residential and commercial end-users and
                           others to be determined. It is presently contemplated
                           that NCT will make its cable telephony services
                           available via (i) a "Franchise Model" whereby NCT
                           will obtain indefeasible rights of use or similar
                           rights from MSOs (and, if applicable, relevant
                           franchising authorities or other parties) for the
                           provision of telephony services to consumers over
                           such MSOs' cable systems, (ii) a "Hosted Model"
                           whereby NCT will provide MSOs with outsourced
                           end-to-end cable telephony service capabilities, or
                           (iii) any other model(s) as deemed appropriate by NCT
                           from time to time. The cable telephony services
                           offered by NCT are referred to herein as the "Cable
                           Telephony Solutions."

                                       4
<PAGE>

Access Provisions:         Under the Agreement, Winstar will provide access to
                           local termination, interconnection, switching,
                           domestic long distance, international long distance,
                           advanced features services and such other services as
                           are set forth on Schedule A annexed hereto or as
                           shall be agreed to by the parties from time to time.
                           Winstar and/or IDT have and will maintain in effect
                           all approvals, certificates and licenses that they
                           are at present legally required to maintain ( as well
                           as comply with those requirements that may be
                           subsequently imposed and are not unduly burdensome)
                           to deliver the services required of them under the
                           Agreement. Winstar and IDT shall continue, for the
                           term of the Agreement to maintain their existing
                           capacity to deliver the services provided for in the
                           Agreement. All services shall be provided to NCT in
                           accordance with the standards of the Service Level
                           Agreement which is to be incorporated into the
                           Agreement. The parties shall coordinate the
                           management of their respective system facilities.
                           Winstar and its assignee(s), if any, will price the
                           services provided at their direct incremental costs
                           of providing the same (which shall not include
                           corporate allocations), plus 5%. Where appropriate,
                           the cost of providing a service or access to a given
                           system shall be determined on a pro rata basis by
                           reference to the capacity of the applicable system
                           and not by the actual use of that system. NCT shall
                           have the right to audit Winstar's costs
                           semi-annually, and all documentation supporting
                           invoiced amounts shall be preserved for at least 12
                           months from the date of the applicable invoice. To
                           the extent required by law, written materials
                           relating to the Cable Telephony Solutions offered by
                           NCT shall contain an appropriate reference to such
                           services being provided by Winstar.

                                       5
<PAGE>

Consideration:             As additional consideration for the services being
                           provided under the Agreement, Winstar will receive
                           6,900,000 shares of the Class A common stock of
                           Net2Phone ("Shares) upon execution and delivery of
                           the Agreement, the guaranty and the security and
                           escrow agreement and other related documents by the
                           respective parties. The Shares will not be registered
                           and will be appropriately restricted by legend
                           against transfer without registration or other
                           compliance with federal and state securities laws.
                           The parties will enter into an appropriate security
                           and escrow agreement providing for the Shares to be
                           held in escrow by NCT as security for Winstar's and
                           IDT's performance hereunder and will be promptly
                           released from the escrow at the rate of 20% per year
                           on each of the first five anniversaries of the
                           execution of this agreement, subject to any claims
                           made against the Shares by NCT by reason of a
                           material default by Winstar or IDT under the
                           Agreement. NCT shall be entitled to direct, indirect,
                           incidental, consequential and exemplary damages,
                           including, without limitation, loss of revenue, loss
                           of profits, losses to customers, clients or goodwill
                           resulting from any material breach of the Agreement
                           by Winstar or IDT and shall have the right to recover
                           such damages by recourse to the Shares or by
                           proceeding directly against Winstar and IDT. In the
                           event that, notwithstanding the provisions of the
                           Agreement, Winstar shall reduce its capacity to
                           provide the services described herein by elimination
                           or modification of its infrastructure or otherwise
                           under circumstances that the reasonably anticipated
                           result of such actions would be to materially,
                           adversely affect NCT's ability to market its Cable
                           Telephony Solution and to obtain the services to be
                           provided by Winstar hereunder at substantially the
                           same ongoing costs, NCT shall have the right to
                           terminate the Agreement and all Shares not previously
                           released from escrow to Winstar shall revert to
                           Net2Phone. The security agreement shall provide for
                           arbitration of all disputes between the parties by a
                           mutually agreed upon arbitrator(s) and that, subject
                           to the arbitration provisions, NCT shall have all
                           rights of a secured party under the Uniform
                           Commercial Code as in effect in the State of New
                           Jersey from time to time.

Term and Termination:      The Agreement shall continue in effect indefinitely
                           unless terminated (i) upon mutual agreement of the
                           parties, (ii) upon the occurrence of certain
                           defaults, or (iii) by either party, on 6 months
                           notice, beginning 180 days prior to the fifth
                           anniversary of the execution and delivery of this
                           agreement.

                                       6
<PAGE>

Restriction on
Competition:               Subject to the limitations of applicable law, each
                           party will agree that, during the term of the
                           Agreement, and subject to the terms of the Agreement,
                           neither it nor any of its affiliates will engage,
                           directly or indirectly, except through NCT, in (i)
                           providing cable telephony services in conjunction
                           with MSO's, (ii) the development, marketing or sale
                           of devices or software products that may be utilized
                           by consumers to obtain cable telephony services or
                           (iii) offering local telephony within the geographic
                           footprint of NCT's operations, provided that neither
                           IDT nor any of its affiliates will be restricted from
                           providing local telephony direct to consumers in any
                           area through fixed wireless or UNE-P telephony
                           offerings.

Representations,
Warranties
Covenants:                 Customary for a transaction of this type, including
                           representations and covenants relating to NCT's
                           obligations, if any, to obtain governmental
                           approvals, certifications or licenses and otherwise
                           comply with any and all applicable regulatory
                           obligations.

Indemnification:           Customary provisions for indemnification for losses
                           resulting from a breach of a party's representations,
                           warranties or covenants including with respect to
                           such services provided by Winstar as to which NCT was
                           legally required to but failed to obtain governmental
                           certifications.

                                      * * *

                                       7
<PAGE>

                                   Schedule A

Description of services to be provided under  Agreement

Generally, and to the extent permissible by law, Winstar will provide all
services possible within its technical capacity in order to support the NCT
Business. This may include, but is not limited to, using NCT-provided ANI/CPN,
Winstar routing traffic for origination and termination by a third-party carrier
throughout the United States and International Territories as the Parties may
agree, 911 and E911, LNP, Pre-subscription, operator services, and
Interconnection with the PSTN. Winstar and NCT agree, within 90 days of the
Effective Date of this agreement, to more fully describe the processes by which
Winstar shall provide the Services to NCT.

      1.    Enhanced 911--This is an advanced form of 911 service in which the
            telephone number of the caller is transmitted to the Public Safety
            Answering Point ("PSAP") where it is cross-referenced with an
            address data base to determine the caller's location. Winstar will
            provide NCT with all the Services necessary for NCT to provision
            E911 to its MSO customers or Subscribers.

      2.    CALEA - The Communications Assistance for Law Enforcement Act of
            1994 ("CALEA") requires that telephone communications carriers have
            the ability to trace telephone calls and record their content in
            response to appropriate warrants and court orders. While Net2Phone
            has the ability to trace calls, it has not developed the capacity to
            record content. Cable Labs, the industry agency that establishes
            standards for packet cable compliance.. NCT is PacketCable
            compliant.

      3.    Operator Assisted Services. As a local exchange carrier, Winstar
            will provide MSO users of Net2Phone's cable telephony solution with
            such operator assisted services as operator assisted calling and
            directory assistance.

      4.    Telephone Numbers. Winstar will provide NCT with telephone numbers
            for assignment to its MSO customers or Subscribers, assuring that
            assigned numbers are placed in local exchange routing guides and
            providing the consumers with local number portability, that is the
            ability to allow a customer to transfer his/her existing phone
            number from one provider to another.

      5.    Leased Capacity. Winstar will provide NCT with the ability to lease
            capacity from both IDT and Winstar on a wholesale basis for purposes
            of carrying traffic on a dedicated basis on behalf of NCT's cable
            customers.

      6.    International Cable Operators. IDT's established connectivity
            arrangements throughout the world will enable NCT to offer its
            international cable customers pre-negotiated rates, interconnection
            agreements and facilities.

      7.    Domestic Cable Operators. Winstar's existing interconnect
            agreements, switches and other facilities provide access to the
            public switched telephone network as required.

      8.    Interconnect Arrangements. With the benefit of Winstar's established
            interconnect arrangements, NCT will be able to generate significant
            financial benefits for itself and its cable customers through
            reciprocal compensation arrangements.

                              II. EXCLUDED SERVICES

None.

                                       9

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