Common use of Existing Network Clause in Contracts

Existing Network. On May 1, 1999, and on the first day of each ---------------- month thereafter until such time as the grant and conveyance set forth in Section 1(a) hereof has terminated in its entirety, Net2Phone shall pay to IDT an Existing Network Fee (as defined below) as compensation for the grant and conveyance set forth in Section 1(a) hereof with respect to the Existing Network. As the Frontier Network is completed and delivered, Net2Phone shall have the right to require IDT to terminate, in whole or in part, any or all of the leases and other agreements set forth in Exhibit A, to the extent permitted --------- by such instruments. With respect to any termination requested by Net2Phone, the actual date such lease or other agreement is terminated shall hereinafter be referred to as the "Termination Date" with respect to such lease or other agreement. To the extent that IDT incurs any termination or cancellation charges as a result of any such lease or contract termination, Net2Phone shall reimburse IDT for such charges upon demand. The Existing Network Fee shall equal, on each date payable, the product of $60,000 multiplied by a fraction, the numerator of which is the total mileage of all circuits set forth on Exhibit A hereto except those circuits with --------- respect to which a Termination Date has occurred and the denominator of which is the total mileage of all circuits set forth on Exhibit A hereto. Ten (10) days --------- following the end of any month in which a Termination Date has occurred, IDT shall refund to Net2Phone upon the request of Net2Phone that portion of the Existing Network Fee for such month representing the per diem charge for each circuit deemed terminated during such month (based on mileage) for the number of days in such month following the Termination Date with respect to such circuit.