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171-173 Main Street (Hackensack, NJ) Lease Agreement - 171-173 Main Street Corp. and Net2Phone Inc.

                                LEASE AGREEMENT

     THIS LEASE, dated the first (1st) day of March 1, 1999, between 171-173
MAIN STREET CORPORATION having an office at 190 Main Street, Hackensack, New
Jersey 07601, hereinafter referred to as LANDLORD.


NET2PHONE, INC. having an office at 171 Main Street, Hackensack, New Jersey
07601, herein referred to as TENANT.

     WITNESSETH that the Landlord hereby leases to the Tenant and the Tenant
hereby rents from the Landlord for the term and upon the rate specified, the
leased premises described as follows, 171-173 Main Street, situated in the City
of Hackensack, County of Bergen and State of New Jersey, and known and
designated as 9,845 rentable square feet of the entire premises.

1.  This lease shall commence on March 1, 1999 and end on February 28, 2002.

2.  Tenant agrees to pay to the Landlord as a base rent for and during the term
    hereof, a monthly rate of $9,912.00. The Tenant shall pay when due all the
    rents or charges for water, utilities, taxes, inspection fees, public area
    insurance, contracts & services, which are or may be assessed or imposed
    upon the leased premises and common areas and which may be charged to the
    Landlord by the suppliers thereof during the term hereof. If not paid, such
    rents or charges shall be added to and become payable as additional rent
    with installment of rent next due or within 30 days of demand therefor,
    whichever occurs sooner. The Tenant shall be responsible for general
    maintenance of the leases premises, including general garbage removal.

3.  The base rent payable by Tenant has been calculated on the basis of the
    portion of the leases premises to be occupied by Tenant during each
    applicable period during the term of the lease. In the event that Tenant
    takes occupancy of any additional portion of the leased premises, the Tenant
    shall be responsible to pay the Landlord an increased monthly rent directly
    proportional to the additional space rented.

4.  Payment of rent is due on the first day of each month. Payable to 171-173
    Main Street Corporation and mailed to: Attention: Marc Knoller, 190 Main
    Street, Hackensack, New Jersey 07601 or as may be otherwise directed by the
    Landlord in writing. Tenant shall pay a late charge of 5% of the monthly
    rent for each payment received by the Landlord after the 5th day of each
    month. Tenant shall pay a late charge of 10% of the monthly rent for each
    rent payment that is received by the landlord after the 10th of each month.
    The late charge shall be due with the current late rent payment.

5.  The Landlord covenants and agrees that the Tenant, on paying the said rental
    and performing covenants and conditions in this lease contained, shall and
    may peaceably and quietly have, hold and enjoy the demised premises for the
    term aforesaid.

6.  The tenant covenants and agrees to use the demised premises for any purpose
    as permissible under local zoning ordinances. Sublease of any portion of the
    demised premises is only permissible with written consent of the Landlord.

7.  The Tenant will comply with all the laws, statutes, ordinances, orders,
    regulations, rules and requirements of every kind and nature relating to the
    premises, or hereafter in effect, of the federal, state, county, municipal,
    or other governmental authorities whether they be usual or usual ordinary or
    extraordinary. The Tenant agrees at his cost and expense to comply with all
    said requirements that pertain to the Tenant and/or his use of the said
    demised premises. The Landlord will be held harmless from all expenses
    and/or damages by reason of any notices, orders, violations, or penalties
    filed against or imposed upon the premises or against the Landlord because
    of the Tenant's non-compliance with said requirements.

8.  The Tenant from and after the date of the commencement of the term of this
    lease will hold the Landlord harmless against any and all claims, suits,
    damages, or causes of action for damages arising after the commencement of
    the term of this lease, and against any orders or decrees of judgments which
    may be entered therein, brought for damages or alleged damages resulting
    from any injury to person and/or property or loss of life sustained in the
    demised premises, during the term hereof.

9.  The Tenant shall during the demised term maintain a general liability policy
    insuring the Tenant and naming the Landlord as additional insured in an
    amount to be agreed upon by the parts but in no event less than
    $500,000/$1,000,000. Tenant shall cause the Landlord to be provided with
    certificates of insurance showing the issuance of the insurance policies
    provided for in this and shall further provide the Landlord with proof of
    payment of the premiums in connection with said property.

10. All erections, alterations, additions and improvements, whether temporary or
    permanent in character, which may be made upon the premises either by the
    Landlord or the Tenant, except furniture or movable trade fixtures installed
    at the expense of the Tenant shall be the property of the Landlord and shall
    remain upon and be surrendered with the premises as a part hereof at the
    termination of this lease without compensation to the Tenant. The Tenant
    further agrees to keep said premises and all parts thereof in a clean and
    sanitary condition and free from trash, inflammable material and other
    objectionable material.

11. The Tenant shall not make any alterations, additions, or improvements to
    said premises without the prior written consent of the Landlord. The Tenant
    shall at its own expense modify the leased premises. All Tenant work shall
    be in accordance with accepted professional and government regulatory
    standards'. All work shall have been reviewed and approved by the Landlord,
    whose approval shall not be unreasonably withheld or delayed. The Tenant has
    applied for and received the required Hacksensack Township permits. The
    Tenants shall take good care of the premises and shall at the Tenant's own
    cost and expense, make all repairs and shall maintain the premises in good
    condition and state of repair, and at the end or other expiration of the
    term hereof, shall deliver up the rented premises in good order and
    condition, wear and tear from reasonable use thereof


    accepted.  Tenant shall neither encumber nor obstruct the sidewalks,
    driveway yards, entrances, hallways and stairs.

12. In the event that any mechanics' lien is filed against the premises as a
    result of alterations, additions, or improvements made by the Tenant, the
    Landlord at its option, after 90 days notice to the Tenant, may terminate
    this lease and may pay the said lien without inquiring into the validity
    thereof, and the Tenant shall forthwith reimburse the Landlord the total
    expense incurred by the Landlord in discharging the said lien as additional
    rent hereunder.

13. If the Tenant does not exercise the option to renew as per the conditions in
    Paragraph 19 of this Lease, then one (1) month prior to the expiration of
    the demised term, the Landlord or its agent shall have the right to place a
    suitable "For Lease" sign on the premises. Also, during this time the
    Landlord or its agent with reasonable notice shall have the right to examine
    the premises and/or exhibit the suite to perspective tenants. In the event
    Landlord enters into a contract of sale of the leased premises, Landlord,
    may in its sole discretion, terminate this Lease Agreement, whereby Landlord
    agrees to provide Tenant with ninety (90) written notice prior to such

14. The Tenant agrees that in case of a fire or other casualty resulting in
    damage to the premises it will give immediate notice thereof to the
    Landlord, who shall thereupon, with expedition and in good and workmanlike
    manner, after said damage, enter upon and undertake said repair and
    rehabilitation, as is necessary to restore said premises to its original
    condition before such damage, provided that such damage, with reasonable
    dispatch, can be repaired within ninety (90) days from the fire or casualty.
    The Landlord will make every effort to place the Tenant into available space
    within the building during the repairs not to exceed the 90 day period. In
    the event that the said demised premises shall at any time during the
    demised term be totally destroyed by fire or other casualty, or should be
    rendered party untenable, and the repair and rehabilitation of said demised
    premises shall be of an extent requiring more than (90) days from the fire
    or casualty for this completion, then this lease, at the option of either
    the Landlord or Tenant may be terminated and the obligation to make rental
    payments thereupon shall cease as of the date of such damage or destruction.
    Tenant shall not be obligated to make rental payments in the event that
    Landlord is unable to place the Tenant into available space in close
    proximity to the Building.

15. It is further agreed that if the rent herein provided for as well as
    additional sums deemed rent and to be paid by the Tenant shall at any time
    be in arrears and unpaid for more than ten (10) days after the demand,
    Landlord, at his option may void this lease and enter into possession of the
    demised premises and sue for and recover all rent due as herein provided for
    the entire lease term. Tenant in any such proceedings hereby waives the
    right of trial by jury. In the event Landlord shall enter into possession of
    the demised premises after default as above provided, Landlord may rent the
    premises for the unexpired term on behalf of the Tenant reserving the right
    to rent the premises for a longer period of time than fixed in the original
    lease without releasing the original Tenant form any liability, applying any
    monies collected first to the expense of resuming or obtaining possession,
    second to restoring premises to a rentable condition and then to the


    payment of the rent and all other charges due and to grow due to the
    Landlord, any surplus to be paid to the Tenant who shall remain liable for
    any deficiency, as measured by the term of this lease.

16. This lease is subject and is hereby subordinated to all present and future
    mortgages, deeds of trust and other encumbrances affecting the demised
    premises or the property of which said premises are a part. The tenant
    agrees to execute, at no expense to the Landlord, any instrument which may
    be deemed necessary or desirable by the Landlord to further affect the
    subordination of this lease to any such mortgage, deed or trust or
    encumbrance. Tenant may not in any manner or form encumber this lease and
    the leasehold hereby created. Regardless of the terms of this Paragraph,
    Landlord will seek to obtain from any mortgage the right to quiet enjoyment
    of the Tenant as long as the Tenant attorns to said mortgagee.

17. If the property or any substantial part hereof wherein the demised premises
    are located shall be taken by public or quasi-public authority under any
    power or eminent domain or commendation, this lease at the option of the
    landlord shall forthwith terminate and the Tenant shall have no claim or
    interest in or to any award or damages from the Landlord for such taking.
    The Tenant is not precluded from the maintaining its own action against the
    condemning authority if said Tenant's rights are legislatively protected.

18. The Tenant has this day deposited with the Landlord the sum of $9,912.00
    (Nine thousand nine hundred and twelve dollars) as security for the full and
    faithful performance by the Tenant of all the terms, covenants and
    conditions of this lease upon the Tenant's part to be performed, which said
    sum shall be returned to the Tenant after the time fixed as the expiration
    of the term herein or any renewal option thereof, provided the Tenant has
    fully and faithfully carried out all of said terms, covenants and conditions
    on Tenant's part to be performed. In the event of a bona fide sale, subject
    to this lease, the Landlord shall have the right to transfer the security to
    the purchaser for the benefit of the Tenant and the Landlord shall be
    considered released by the Tenant from all liability for the return of the
    said security; and the Tenant agrees to look to the new Landlord solely for
    the return of the said security, and it is agreed that this shall apply to
    every transfer or assignment made of the security of a new Landlord.

19. Provided that the tenant is not in default under this lease, Tenant shall
    have the option to renew this lease for an additional three year term by
    notifying the Landlord in writing, by certified or overnight mail, notice of
    its election to do so at least one (1) month prior to the date of the
    expiration of the then current term. The new rent to be payable during the
    renewal term shall be the current annual rental amount plus the Consumer
    Price Index (CPI) which shall begin to accrue as of the _______ of this
    lease. All other terms and conditions of the original lease shall remain in
    effect in full force and effect.

20. The Tenant accepts the premises in "AS IS" condition.

21. No sign, advertisement or notice shall be affixed to or placed upon any part
    of the demised premises by the Tenant, except in such manner and of such
    size, design and color as shall be approved in advance in writing by the
    Landlord, such approval not to be unreasonably withheld.


22. The rules and regulations regarding the demised premises which are part of
    this lease, shall be observed by the Tenant and by the Tenant's employees,
    agents and customers.

23. Landlord represents and warrants that Landlord and his agents know of
    nothing concerning the Premises which are subject matter of this leasehold
    agreement that would prohibit use of the premises by the Tenant for the uses
    and purposes intended and further that all of the mechanical equipment and
    structure in question, at time of the delivery of the premises to the
    Tenant, is sound and in good working order. Moreover, the electrical lines
    and plumbing likes contained within the building are in proper working order
    as of the time of the initial occupancy herein specified.

24. All of the terms, covenants and conditions of this lease shall insure to the
    benefit of and be binding upon the respective heirs, executors,
    administrators, successors and assigns of the parties hereto.

IN WITNESS WHEREOF, the said parties have hereunto set their hands and seals the
days and year first above written.

WITNESS:                             171-173 MAIN STREET CORPORATION

                                     By      /s/ Howard Jonas
                                         Howard Jonas, President

ATTEST:                              NET2PHONE INC.

                                     By      /s/ Howard Balter
                                         Howard Balter, Chief Executive Officer


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