Document:

ex10-43

NET2000 COMMUNICATIONS GROUP, INC.      EXHIBIT: 10.43

2180 Fox Mill Road

Herndon, Virginia 20171

                    May 30, 2001

Mr. Mark Mendes

268 Hill and Dale Lane

Berryville, VA 22611

Dear Mark:

      We are pleased to inform you that Net2000 Communications Group, Inc. (the
“Company”) has agreed to your request to commit (the “Commitment”) to lend you
(the “Borrower”) loans in an aggregate amount of up to one hundred thousand
dollars ($100,000) (collectively, the “Loan”) upon the terms and conditions set
forth herein.

      All the details regarding the Loan are outlined in the following
paragraphs of this letter.

      1.      Type of Loan: Subject to the terms and conditions hereof, the Company
agrees to make loans to you from time to time from the date hereof to and
including November 29, 2002; provided that in no event shall the aggregate
outstanding principal amount of the loans exceed $100,000. The Loan matures,
and shall be due and payable (together with all accrued interest thereon) on
November 30, 2002 (the “Maturity Date”). The Borrower may borrow on any
Business Day, provided that the Borrower shall give the Company written notice
(which notice must be received by the Company prior to 1:00 p.m., Eastern
Standard Time, on the requested borrowing date). The proceeds of each advance
of the Loan shall be made available to the Borrower by check or wire transfer
at an account specified by the Borrower in writing to the Company. The Company
has established a bank account at a commercial bank of prominent reputation at
which the funds have been deposited for purposes of making the Loan.

      2.      Note. The obligation of the Borrower to repay the Loan shall be
evidenced by a promissory note (the “Note”) in the form set forth as Exhibit A
hereto.

      3.      Interest Rate. Interest on the unpaid balance of the Loan will be
charged at a rate per annum as set forth in the Note and will be computed on
the basis set forth in the Note.

      4.      Prepayment. Subject to the terms and conditions of this letter
agreement (herein referred to as this “Agreement”), the Borrower may prepay
this Loan in whole or in part at any time without penalty or premium, together
with any accrued but unpaid interest thereon. Amounts so prepaid may not be
reborrowed.

 

      5.      Payment Terms. (a) Accrued interest shall be due and payable on the
last day of each calendar month, commencing with the first such day following
the date the initial advance of the Loan is made.

               (b)      The outstanding principal amount, together with all accrued interest
on the Loan, shall be due and payable on the Maturity Date.

      6.      Mandatory Repayment. In the event that the Borrower is no longer
employed by the Company or the Company’s parent company for any reason
whatsoever (whether because of voluntary or involuntary termination, death or
otherwise) (the first date on which Borrower is no longer employed, the
“Termination Date”), the Loan, together with all accrued interest thereon and
all other obligations payable pursuant to this Agreement and the Note, shall
become due and payable no later than sixty (60) days from the Termination Date.

      7.      Event of Default. (a) Each of the following events or occurrences
shall be an event of default (an “Event of Default”) under this Agreement and
the Note:

		
	 	            (i)      The failure by the Borrower to pay the principal of the Loan or
any interest on the Loan when the same shall have become due.

		
	 	            (ii)      The Borrower shall die or become legally incompetent.

		
	 	            (iii)      (A) The Borrower shall commence any case, proceeding or other
action (1) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief
of debtors, seeking to have an order for relief entered with respect to
it, or seeking to adjudicate him as bankrupt or insolvent, or seeking
reorganization, arrangement, winding up, liquidation, dissolution, or
other relief with respect to his debts, or (2) seeking appointment of a
receiver, trustee, custodian or other similar official for him or for all
or any substantial part of his assets, or the Borrower shall make a
general assignment for the benefit of his creditors; or (B) there shall
be commenced against the Borrower any case, proceeding or other action of
a nature referred to in clause (A) above which (1) results in the entry
of an order for relief or any such adjudication or appointment or (2)
remains undismissed, undischarged or unbonded for a period of 60 days; or
(C) there shall be commenced against the Borrower any case, proceeding or
other action seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of his
assets which results in the entry of an order for any such relief which
shall not have been vacated, discharged, or stayed or bonded pending
appeal within 60 days from the entry thereof; or (D) the Borrower shall
take any action in furtherance of, or indicating his consent to, approval
of, or acquiescence in, any of the acts set forth in clause (A), (B), or
(C) above; or (E) the Borrower shall generally not, or shall be unable
to, or shall admit in writing to his inability to, pay his debts as they
become due.

 

               (b)      If an Event of Default shall occur and be continuing, the Company may,
by notice to the Borrower, terminate the Commitment to make the Loan and
declare the entire unpaid principal amount of the Loan, all interest accrued
and unpaid thereon and all other amounts payable hereunder and under the other
Documents (as hereinafter defined) to be forthwith due and payable, whereupon
the entire unpaid principal amount of the Loan, all interest accrued and unpaid
thereon and all other amounts payable hereunder under the Note and under the
other Documents shall be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby
expressly waived by the Borrower; provided, however, that the occurrence of the
events described in Paragraph 7(a)(iii) of this Agreement shall result in an
automatic termination of the Commitment and immediate acceleration of the Loan
and all amounts due by the Borrower under the Note and this Agreement and the
other Documents, whereupon all such amounts shall be due and payable.

               (c)      The remedies provided in this Paragraph 7 and in the Note are
cumulative and not exclusive of any remedies provided by law. The Company is
entitled to exercise any remedies simultaneously or in whatever order the
Company deems appropriate.

               (d)      Upon the occurrence and during the continuance of any Event of
Default, the Company may take any lawful action against the Borrower to collect
the payments then due and thereafter to become due under the Note and this
Agreement.

      8.      Notices. All notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when
delivered by hand, or when sent, via overnight mail (with confirmation
received), addressed as follows or to such other address as may be hereafter
notified by the respective parties hereto:

	 	 	 
	The Borrowers:		
Mr. Mark Mendes

268 Hill and Dale Lane

Berryville, VA  22611
	 
	The Company:		
Net2000 Communications Group, Inc.

2180 Fox Mill Road

Herndon, Virginia  20171

Attn:  Legal Department

provided that any notice, request or demand to or upon the Company shall not be
effective until received.

      9.      Expenses Etc. The Borrower shall pay or reimburse (on demand) the
Company for (a) and and all costs and expenses of the Company (including legal
fees and disbursements of counsel to the Company) in connection with the
negotiation, preparation, execution, delivery, administration and enforcement
of this Agreement, the Note, the Loan or any other documents,

 

agreements and instruments in connection therewith and all other
instruments or documents provided for herein or delivered or to be delivered
hereunder or in connection herewith (collectively, the “Documents”) and of any
actual or proposed waiver or amendment to any of the foregoing (whether or not
such waiver or amendment shall become effective) and (b) all transfer, stamp,
documentary or other similar taxes, assessments or charges levied by any
governmental or revenue authority in respect of this Agreement, the Note, the
Loan or any other Document or any other document referred to herein or therein.
The Borrower hereby agrees to indemnify the Company and all of its affiliates
and all of their directors, officers, employees and agents (each an
“Indemnified Party”) from, and hold each of them harmless against, any and all
losses, liabilities, claims, damages or expenses incurred by any of them
arising out of or by reason of any investigation or litigation or other
proceedings (including any threatened investigation or litigation or other
proceedings) relating to any actual or proposed use by the Borrower of the
proceeds of the Loan hereunder and under the Note, including, without
limitation, the reasonable legal fees and disbursements of counsel incurred in
connection with any such investigation or litigation or other proceedings (but
excluding any such losses, liabilities, claims, damages or expenses incurred by
reason of the gross negligence or willful misconduct of the party to be
indemnified).

      10.      Amendments. Except as otherwise expressly provided in this Agreement,
any provision of this Agreement may be amended or modified only by an
instrument in writing signed by the Borrower and the Company.

      11.      Representation and Warranty. The Borrower represents and warrants to
the Company that no part of the proceeds of the Loan will be used to buy or
carry any margin stock (within the meaning of Regulation T, U or X of the Board
of Governors of the Federal Reserve System).

      12.      Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the Borrower and the Company, all future holders of the Note
and their respective successors and assigns, except that the Borrower may not
assign or transfer any of his rights or obligations under this Agreement or the
Note without the prior written consent of the Company.

      13.      Captions. Captions and section headings appearing herein are included
solely for convenience of reference and are not intended to affect the
interpretation of any provision of this Agreement.

      14.      Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

      15.      GOVERNING LAW. THIS AGREEMENT, THE NOTE AND THE OTHER DOCUMENTS SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. THE BORROWER AND THE COMPANY

 

HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

      16.      Severability. In case any provision in or obligation under this
Agreement or the Note or the other Documents shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

      17.      Survival. All indemnities set forth herein including, without
limitation, in Paragraph 9, shall survive the execution and delivery of this
Agreement, the Note and the other Documents and the making and repayment of any
advances hereunder.

      If you are in agreement with the foregoing, kindly sign this Agreement in
the space provided, whereupon this Agreement shall become a binding agreement
on the parties hereto.

	 	 
	 	Very truly yours,
	 
	 	NET2000 COMMUNICATIONS GROUP, INC
	 
	 	By: /s/ Donald Clarke

Donald Clarke

Chief Financial Officer

AGREEMENT AND ACCEPTANCE

With the intent to be legally bound hereby, the above terms and conditions are
hereby agreed to and accepted this 4th day of June, 2001.

	 	 
		/s/ Mark Mendes

MARK MENDES

 

COMMONWEALTH OF VIRGINIA )

                                                             )   ss:

COUNTY OF FAIRFAX                    )

      On this 4th day of June, 2001, before me personally appeared MARK MENDES,
to me known to be the person who executed the foregoing instrument and who
being by me duly sworn, did depose and say that he resides at 268 Hill and Dale
Lane, Berryville, Virginia and that he signed his name to the foregoing
instrument.

	 	 
	 	/s/ Jennifer Fabris

NOTARY PUBLICex10-44

	 	 	 
	PROMISSORY NOTE	Exhibit: 10.44

	 	 	 
	ONE HUNDRED THOUSAND DOLLARS ($100,000)		
May 30, 2001

		
	 	            
        FOR VALUE RECEIVED, the undersigned, MARK MENDES (the “Borrower”) promises
to pay to the order of NET2000 COMMUNICATIONS GROUP, INC., a Delaware
corporation (the “Lender”), the principal sum of ONE HUNDRED THOUSAND DOLLARS
($100,000), or, if less, the aggregate outstanding amount of the Loan defined
in the Agreement referred to below, together with interest thereon as set forth
below, at its offices or such other place as the Lender may designate in
writing.
	 
	 	      1.    
        Agreement. This Promissory Note (the “Note”) is executed and delivered
by the Borrower in connection with loans which may be made by the Lender to the
Borrower pursuant to the terms and conditions of that certain letter agreement
dated May 30, 2001 (as the same may be amended, modified or restated from time
to time, the “Agreement”) between the Borrower and the Lender. This Note is
subject to the terms and conditions of the Agreement. Any capitalized term used
herein and not otherwise defined herein shall have the meaning assigned to it
in the Agreement.
	 
	 	      2.     Interest Rate Provisions. Except as provided in Section 2.2 hereof,
from the date hereof and thereafter until the outstanding amount hereof is paid
in full, interest shall accrue on the principal balance of this Note
outstanding from time to time at the rate of the greater of (i) five percent
(5%) per annum or (ii) the Applicable Federal Rate (“AFR”) in effect at the end
of each month as published by the United States Internal Revenue Service (the
"Interest Rate”), and shall be paid currently in cash on a monthly basis on
each Payment Date (as defined below). Each change in any interest rate
provided for herein based on the AFR resulting from a change in the AFR shall
take effect without notice to the Borrower at the time of such change in the
AFR.

		
	 	            
        2.2            
        Default Interest Rate. If the Borrower shall default in the payment
of the principal of or interest on the Note or any other amount becoming due
hereunder after any applicable cure period, by acceleration or otherwise, or
under any other Document, whether or not such default is declared, the Interest
Rate shall increase to the Prime Rate plus a margin of 3% per annum and
interest shall be paid currently in cash on a monthly basis on each Payment
Date (as defined below) until the payment in full of all overdue payments or
other cure of such Event of Default.
	 
	 	            
        2.3            
        Calculation of Interest. Interest shall be computed for each payment
period on the principal balance for the actual number of days outstanding over
a year of 365 or 366 days, as applicable.

 

		
	 
	 	      3.    
Payment Provisions.

		
	 	   3.1            
        Interest Payments.

		
	 	                              
        (a)      
        Pay Rate Interest.
Commencing on the last day of the calendar monthfollowing the date the initial advance of the Loan is made and continuing on
the last day of each succeeding calendar month thereafter (each such date, a
“Payment Date”), the Borrower shall pay in cash to the Lender monthly
installments of interest only (in arrears) at the Interest Rate on the then
outstanding principal balance under this Note.

		
	 	
              
        3.2          
        Principal Payments and Payment at Maturity. On the Maturity Date, the
entire then outstanding principal balance of this Note, together with all
accrued but unpaid interest, and all other sums owed hereunder shall be due and
payable in full in cash without further notice or demand.
	 
	 	
              
        3.3          
         Prepayments; Application of Payments. The Borrower may prepay the then
outstanding principal amount of this Note in whole or in part at any time
without premium or penalty.
	 
	 	
              
        3.4          
        Mandatory Prepayment of the Note. In the event that the Borrower is
no longer employed by the Lender or the Lender’s parent company for any reason
whatsoever (whether because of voluntary or involuntary termination, death or
otherwise) (the first date on which Borrower is no longer employed, the
"Termination Date”) the Loan, together with all accrued interest therein and
all other obligations payable pursuant to the Agreement and this Note, shall
become due and payable no later than sixty (60) days from the Termination Date.
	 
	 	
              
        3.5          
        Payments Generally. All payments of principal and interest in respect
of this Note shall be made in lawful money of the United States of America in
same day funds to the Lender, at its office located at 2180 Fox Mill Road,
Herndon, Virginia 20171 or at such other place as shall be designated in
writing to the Borrower for such purpose.

      4.      
Assignment. This Note and the obligations hereunder may not be
assigned by the Borrower without the prior written consent of the Lender.

      5.      
Default and Remedies. The occurrence of an Event of Default
under the Agreement shall constitute a default hereunder and, so long as such
Event of Default shall continue, shall entitle the Lender to exercise the
rights and remedies specified in the Agreement, as well as those available at
law or in equity.

      6.      
Waivers. The Borrower hereby waives presentment, demand, protest, or
further notice of any kind.

      7.      
Controlling Law. This Note and all matters related hereto shall be
governed, construed and interpreted strictly in accordance with the laws of the
State of New York.

[Signatures on next page]

-2-

      IN WITNESS WHEREOF, the undersigned has caused this Note to be executed
and effective on the day and year first above written.

	 
	/s/ Mark Mendes
	——————————————————
	MARK MENDES

-3-

	 	 	 	 	 	 	 
	COMMONWEALTH OF VIRGINIA )			
	
	
	
	
	

	                                              
     )			ss:
			
	
	
	
	

	COUNTY OF FAIRFAX                      )			                    
	

      On this 4th day of June, 2001, before me personally appeared MARK MENDES,
to me known to be the person who executed the foregoing instrument and who
being by me duly sworn, did depose and say that he resides at 268 Hill and Dale
Lane, Berryville, Virginia and that he signed his name to the foregoing
instrument.

	 
	/s/Jennifer Fabris
	——————————————————
	NOTARY PUBLIC

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