Document:

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                                                                   EXHIBIT 10.34

                      GUARANTY AND LOAN PURCHASE AGREEMENT

        THIS GUARANTY AND LOAN PURCHASE AGREEMENT (this "AGREEMENT") made as of
the 6th day of December, 2000, by Accelerated Networks, Inc., a Delaware
corporation (referred to herein as "OBLIGOR"), with and for the benefit of
Siemens Financial Services, Inc., a Delaware corporation (referred to herein as
"LENDER").

        A. WCI Capital Corp., a Delaware corporation (referred to herein as
"BORROWER") has requested Lender to make a loan to Borrower in the original
principal amount of Two Hundred Million and 00/100 Dollars ($200,000,000.00)
(which loan, as more fully described hereinbelow, is referred to herein as the
"LOAN").

        B. Obligor has requested Siemens Carrier Networks LLC, a limited
liability company (referred to herein as "SIEMENS NETWORK"), and/or Siemens
Aktiengesellschaft (referred to herein as "SIEMENS AG"), a German corporation,
and/or other affiliates of Siemens AG (Siemens Network, Siemens AG and all such
other affiliates of Siemens AG are herein collectively referred to as "SIEMENS")
to purchase Accelerated Equipment (as defined below) from Obligor for sale by
Siemens to one or more affiliates of Borrower, including WinStar Communications,
Inc., a Delaware corporation (referred to herein as "WINSTAR COMMUNICATIONS"),
pursuant to the Winstar Purchase Agreement (as defined below).

        C. To induce Lender to make the Loan to Borrower, and to induce Siemens
to purchase the Accelerated Equipment from Obligor, Obligor has agreed to either
(i) guarantee the payment of a portion of the Loan as more fully set forth in
this Agreement (the "PAYMENT GUARANTEE"), or, (ii) at Lender's option, purchase
a portion of the Loan from Lender, provided that any portion of the Loan so
purchased by Obligor from Lender shall reduce Obligor's liability under the
Payment Guarantee by the amount of the purchase price paid by Obligor to Lender
for such portion of the Loan so purchased, as more fully set forth in this
Agreement.

        NOW, THEREFORE, in consideration of the foregoing, and other good and
valuable consideration, the receipt of which is hereby acknowledged, and to
induce Lender to make the Loan to Borrower, and to induce Siemens to purchase
the Accelerated Equipment from Obligor, Obligor and Lender hereby covenant and
agree with each other as follows:

                                    ARTICLE I
                         CONSTRUCTION AND DEFINED TERMS

        SECTION 1.01. ARTICLES; SECTIONS; CAPTIONS. The Article and Section
headings and captions in this Agreement are for convenience only and shall not
affect the construction or interpretation of this Agreement. The references in
this Agreement to Articles and Sections shall be read as Articles or Sections of
this Agreement unless otherwise specifically provided.

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        SECTION 1.02. DEFINED TERMS. Capitalized terms used in this Agreement
shall have the following meanings:

            "ACCELERATED EQUIPMENT" Equipment purchased by Siemens from Obligor
for sale by Siemens to WinStar.

            "ACCELERATED EQUIPMENT PERCENTAGE" As of any date of determination,
the percentage amount obtained by dividing (a) the aggregate amount (based on
the purchase price that Siemens charges to Winstar) of Accelerated Equipment
sold by Siemens to Winstar under the Winstar Purchase Agreement through such
date, by (b) the lesser of (i) the aggregate amount (based on the purchase price
that Siemens charges to Winstar) of all equipment and services sold by Siemens
to Winstar under the Winstar Purchase Agreement through such date or (ii)
$150,000,000.

            "BASE REDUCTION AMOUNT" As of any date of determination, the greater
of (a) the amount equal to the difference of (i) the aggregate principal amount
of the Loan repaid by Borrower through such date, minus (ii) the aggregate
amount (based on the purchase price that Siemens charges to Winstar) of
Accelerated Equipment sold by Siemens to Winstar through such date, or (b) zero
dollars ($0).

            "DEFAULT INTEREST RATE" means, as of any date, the prime rate
(currently described as the base rate on corporate loans posted by at least 75%
of the nation's 30 largest banks) published in the "Money Rates" column of The
Wall Street Journal (the "Wall Street Journal") on such date, or if the prime
rate is not published therein on such date, then the prime rate most recently
published therein prior to such date ("WSJ PRIME RATE"). If the Wall Street
Journal ceases to publish the WSJ Prime Rate, then "Default Interest Rate" shall
thereafter mean, as of any date, the most current prime rate published by the
Federal Reserve Board in its most recent H.15 Statistical Release ("Selected
Interest Rates") ("FEDERAL RESERVE PRIME RATE"). The Default Interest Rate will
increase or decrease, as the case may be, with increases or decreases in the WSJ
Prime Rate (or the Federal Reserve Prime Rate, if applicable) from time to time.

            "EVENT OF DEFAULT" As defined in Section 4.01.

            "GUARANTEED AMOUNT" As of any date of determination, the amount
equal to the difference of (a) the Maximum Guaranteed Amount, minus (b) the
greater of (i) the Reduction Amount or (ii) zero dollars ($0). If as of the date
of determination of the Guaranteed Amount the Reduction Amount is greater than
the Maximum Guaranteed Amount, then the Guaranteed Amount shall be deemed to be
zero ($0).

            "INCLUDE" and "INCLUDING" Unless otherwise expressly limited herein,
the words "include" and "including" shall be read to mean "include, without
limitation," and "including, without limitation," as the case may be.

            "LOAN" The loan in the principal amount of Two Hundred Million
Dollars (US$200,000,000) made by Lender to Borrower and evidenced by the Loan
Agreement and the other Loan Documents.

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            "LOAN AGREEMENT" The Revolving Credit and Term Loan Agreement dated
as of May 4, 2000, by and among WinStar Communications, Inc., a Delaware
corporation (the "Parent"), WCI Capital Corp., a Delaware corporation (the
"Borrower"), each of the entities listed on the signature pages thereof under
the heading "Guarantors" and the Additional Guarantors (as defined in Section
6.09 thereof) from time to time parties thereto, each of the lenders from time
to time parties thereto (collectively, the "Lenders"), The Bank of New York, as
letter of credit issuer, administrative agent and collateral agent for the
Lenders, Citicorp North America, Inc., as syndication agent for the Lenders, and
CIBC World Markets Corp. and Credit Suisse First Boston, as documentation agents
for the Lenders, and shall include such amendments, supplements, and
replacements as may be made thereto or therefor from time to time, including the
"Amendment No. 2 and New Lender Agreement", dated as of December 6, 2000
(referred to herein as the "AMENDMENT NO. 2").

            "LOAN DEFAULT" Any default or event of default under the Loan
Documents, which entitles the Lenders thereunder to accelerate the Loan, whether
or not the Loan is accelerated.

            "LOAN DOCUMENT" or "LOAN DOCUMENTS" The Loan Agreement, and each and
every other Credit Document (as defined therein). This Agreement is not a Loan
Document.

            "LOAN PURCHASE DEMAND" A written demand made by Lender to Obligor
for Obligor to purchase from Lender a portion of the Loan, which demand shall
state that it is a Loan Purchase Demand made under this Agreement.

            "LOAN PURCHASE PRICE" The amount equal to the Guaranteed Amount.

            "MAXIMUM GUARANTEED AMOUNT" As of any date of determination, the
dollar amount equal to one-tenth (1/10th) of the aggregate amount (based on the
purchase price that Obligor charges to Siemens) of all Accelerated Equipment
through such date.

            "OBLIGATIONS" Any and all of Obligor's now existing and hereafter
arising obligations arising under this Agreement.

            "OUTSTANDING LOAN BALANCE" As defined in Section 2.01.

            "PERSON" Any individual, corporation, company, partnership, joint
venture, entity, association, joint-stock company, trust or unincorporated
organization and any governmental authority.

            "PURCHASED LOAN AMOUNT" As defined in Section 2.02.

            "REDUCTION AMOUNT" As of any date of determination, the amount equal
to the product of (a) the Reduction Factor multiplied by (b) the Base Reduction
Amount.

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            "REDUCTION FACTOR" One-tenth (1/10th) of the Accelerated Equipment
Percentage.

            "SUPPLEMENTAL AGREEMENT" That certain Supplemental Agreement among
WinStar Communications, Siemens Network and Siemens AG, dated as of December 6,
2000, as now in effect or as hereafter amended (the "INITIAL SUPPLEMENTAL
AGREEMENT"), and if the Frame Agreement (the "FRAME AGREEMENT") referred to in
the Initial Supplemental Agreement shall be entered into, then "SUPPLEMENTAL
AGREEMENT" shall mean and refer to both the Initial Supplemental Agreement and
the Frame Agreement, as hereafter in effect or amended.

            "WINSTAR" Winstar Communications and/or any of its affiliates other
than Borrower.

            "WINSTAR PURCHASE AGREEMENT" The Point to Multi Point Supply and
Services Agreement executed September 13, 1999, as amended by Amendment No. 1
thereto executed as of November 3, 2000, as supplemented by the Supplemental
Agreement, as now in effect or as hereafter amended.

                                   ARTICLE II
                  GUARANTY OF PAYMENT; LOAN PURCHASE AGREEMENT

        SECTION 2.01. GUARANTY OF PAYMENT. (a) Subject to the limitation on
Obligor's liability set forth in subsection 2.01(c) below, Obligor hereby
unconditionally guarantees to pay to Lender all principal, interest and other
amounts due under the Loan Documents in respect of the Loan (the "OUTSTANDING
LOAN BALANCE"), in the amounts, at the times and in the manner set forth in the
Loan Documents. During the continuation of a Loan Default, and subject to the
limitation on Obligor's liability set forth in subsection 2.01(c) below, Obligor
agrees to pay to Lender the Outstanding Loan Balance (or the Guaranteed Amount
(less any amount thereof paid to Lender in accordance with the provisions of
Section 2.02)) within ten (10) calendar days after Lender's demand.

        (b) This guaranty of payment is irrevocable, absolute and unconditional,
and is one of payment and not just collection. Obligor shall pay to Lender all
amounts due by Obligor hereunder, and shall not exercise against Lender any
rights of setoff, recoupment, or counterclaim that Obligor might otherwise have
against Lender or Borrower or any other Person, and Obligor shall pay and
perform Obligor's obligations hereunder free of any deductions and without
abatement, diminution, or setoff.

        (c) The amount of Obligor's maximum liability under this Section 2.01 is
limited to the lesser of (i) the Guaranteed Amount (less any amount thereof paid
to Lender in accordance with the provisions of Section 2.02) determined as of
the date of the Loan Default referred to in Lender's demand under Section
2.01(a), or (ii) the amount of the Outstanding Loan Balance due to Lender on the
date of the Loan Default referred to in Lender's demand under Section 2.01(a).
If the Guaranteed Amount is determined as of a date on which there is a
Reduction Amount greater than zero dollars ($0), then Lender's demand for
payment under this Section 2.01 shall also set forth the calculation of the
Reduction Amount.

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        (d) All Accelerated Equipment that is sold by Siemens to Winstar shall,
as between Obligor and Lender, be deemed to have been sold by Siemens to Winstar
under the Winstar Purchase Agreement.

        SECTION 2.02. LOAN PURCHASE AGREEMENT. Notwithstanding the provisions of
Section 2.01, Obligor hereby covenants to purchase from Lender a portion of the
Loan in accordance with the following provisions of this Section 2.02:

            (a) Subject to subsection 2.02(b) below, within ten (10) calendar
days after Lender gives a Loan Purchase Demand to Obligor, Obligor shall
purchase from Lender, and Lender shall sell to Obligor, a portion of the
outstanding principal balance of the Loan (such portion of the outstanding
principal balance of the Loan being referred to herein as the "PURCHASED LOAN
AMOUNT") which when added to the amount of the accrued but unpaid interest on
the Purchased Loan Amount, if any, and the amount of any unpaid charges, costs,
expenses and fees, if any, to which the holder of the Purchased Loan Amount may
be entitled in accordance with the terms of the Loan Agreement, equals the
Guaranteed Amount. The purchase and sale of the Purchased Loan Amount shall be
consummated by Obligor paying to Lender the Loan Purchase Price in immediately
available funds.

            (b) Lender agrees not to give a Loan Purchase Demand to Obligor
unless (i) an Event of Default has occurred and is continuing, or (ii) a Loan
Default has occurred and is continuing. For purposes of this subsection 2.02, if
the Loan Purchase Demand is based on a Loan Default, then the Guaranteed Amount
shall be determined as of the date of such Loan Default, and if the Loan
Purchase Demand is based on an Event of Default, then the Guaranteed Amount
shall be determined as of the date of such Event of Default. If the Guaranteed
Amount is determined as of a date on which there is a Reduction Amount greater
than zero dollars ($0), then the Loan Purchase Demand under this subsection 2.02
shall also set forth the calculation of the Reduction Amount.

            (c) If Lender gives a Loan Purchase Demand to Obligor and Obligor
pays the Loan Purchase Price to Lender, then Obligor's liability to Lender under
Section 2.01 of this Article shall be deemed satisfied by such payment.

            (d) Upon Obligor's payment of the Loan Purchase Price to Lender in
accordance with a Loan Purchase Demand, Lender shall assign to Obligor, without
recourse, and without representation or warranty of any kind, the Purchased Loan
Amount so purchased by Obligor, in accordance with the procedures set forth in
the Loan Agreement, and upon such assignment Obligor shall own the Purchased
Loan Amount and shall be entitled to receive from Borrower in accordance with
the terms of the Loan Agreement, all accrued and unpaid interest on the
Purchased Loan Amount, and such portion of any unpaid charges, costs, expenses,
and fees, if any, to which the holder of the Purchased Loan Amount may be
entitled in accordance with the terms of the Loan Agreement by virtue of being
the holder of the Purchased Loan Amount. In connection with any Loan Purchase
Demand under this Agreement, Obligor agrees to execute an Assignment and
Acceptance in the form required by the terms of the Loan Agreement.

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            (e) If Lender gives a Loan Purchase Demand to Obligor but Lender is
not permitted to sell the Purchased Loan Amount to Obligor (or Obligor is not
permitted to purchase the Purchased Loan Amount from Lender) in accordance with
the provisions of the Loan Documents, then (i) Lender and Obligor shall not
consummate the purchase and assignment of the Purchased Loan Amount pursuant to
such Loan Purchase Demand and (ii) such Loan Purchase Demand shall be deemed
rescinded, preserving Lender's continuing right to demand payment under the
guaranty of payment set forth in Section 2.01 or to give other Loan Purchase
Demands thereafter.

            (f) Notwithstanding anything to the contrary set forth in this
Section 2.02, if Lender shall have demanded payment from Obligor under Section
2.01, and Obligor shall have paid to Lender the amount of Obligor's maximum
liability as determined under Section 2.01(c), then Obligor shall not be
obligated to purchase any portion of the Loan under this Section 2.02.

        SECTION 2.03. OBLIGOR'S LIABILITY ABSOLUTE AND UNCONDITIONAL. The
liability of Obligor under this Agreement shall in no way be affected, limited,
modified or released by, subject to or conditioned upon, and may be enforced
against Obligor irrespective of any of the following:

            (a) Any enforcement or exhaustion of any rights and remedies Lender
may at any time have to collect any or all of the Loan from Borrower under the
provisions of the Loan Documents or otherwise;

            (b) Any resort or recourse to or against any assets or property now
or hereafter held or serving as collateral and security for any or all of the
Loan;

            (c) Any counterclaim, recoupment, setoff, reduction or defense based
on any claim that Obligor may now or hereafter have against Lender or Borrower;

            (d) The genuineness, validity, priority, regularity or
enforceability of any or all of the Loan Documents;

            (e) Any event, circumstance or matter to which Obligor has consented
pursuant to the provisions of this Agreement; or

            (f) Any modification, limitation or discharge of any of the
liabilities or obligations of Borrower or any other Person, arising out of, or
by virtue of, any bankruptcy or similar proceeding for relief of debtors under
federal or state law initiated by or against Borrower or any other Person.

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        SECTION 2.04. BORROWER. Obligor's liability under this Agreement is not
conditioned on, and shall not be affected by, any consent, request, agreement,
or other action by Borrower or any other Person.

         SECTION 2.05. NO DUTY TO DISCLOSE. Lender shall have no present or
future duty or obligation, and Obligor waives any right to claim or assert any
such duty or obligation, to discover or to disclose to Obligor any information,
financial or otherwise, concerning Borrower, any other Person, or any collateral
securing the obligations of Borrower to Lender or any other Person.
Notwithstanding the preceding sentence, Lender shall provide to Obligor the
following information promptly upon Obligor's written request:

            (a) the aggregate amount of Accelerated Equipment sold by Siemens to
Winstar under the Winstar Purchase Agreement;

            (b) the aggregate amount of all equipment and services sold by
Siemens to Winstar under the Winstar Purchase Agreement;

            (c) the outstanding balance of the Loan;

            (d) copies of any amendments to the Supplemental Agreement;

            (e) copies of any amendments to the Loan Documents; and

            (f) copies of any written notices regarding the Loan that Lender
receives from the administrative agent for the Lenders under the Loan Agreement,
except to the extent that providing such copies (or providing information
contained in such written notices) to Obligor would not be permitted by the Loan
Agreement.

        SECTION 2.06. NO OBLIGATION TO MAKE LOAN. Nothing in this Agreement
shall be construed as obligating Lender or any other Person to make the Loan,
but Obligor acknowledges that if the Loan is made, Lender will be making the
Loan in reliance on this Agreement.

        SECTION 2.07. NO OBLIGATION TO PURCHASE ACCELERATED EQUIPMENT. Nothing
in this Agreement shall be construed as obligating Siemens to purchase any
Accelerated Equipment from Obligor, but Obligor acknowledges that if Siemens
purchases Accelerated Equipment from Obligor, such purchases will be made in
reliance on this Agreement.

        SECTION 2.08. LOAN DEFAULTS. In the event of more than one Loan Default,
Lender shall be entitled to determine which Loan Default is the Loan Default for
purposes of exercising any right that Lender may have under this Agreement upon
the occurrence of a Loan Default.

        SECTION 2.09. EVENTS OF DEFAULT. In the event of more than one Event of
Default, Lender shall be entitled to determine which Event of Default is the
Event of Default for purposes of exercising any right that Lender may have under
this Agreement upon the occurrence of an Event of Default.

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        SECTION 2.10. ASSIGNMENT REQUEST. If (i) Lender shall have demanded
payment from Obligor under Section 2.01, and (ii) within ten (10) calendar days
after such demand Obligor shall have unconditionally paid to Lender in response
to such demand the full amount of Obligor's maximum liability as determined
under Section 2.01(c) (the "DEMAND AMOUNT"), and (iii) within ten (10) calendar
days after Lender's receipt of the Demand Amount Obligor shall have made a
request to Lender in writing (an "ASSIGNMENT REQUEST") for Lender to assign to
Obligor a portion (the "ASSIGNMENT PORTION") of the outstanding principal
balance of the Loan, which Assignment Portion shall equal the amount that the
"Purchased Loan Amount" would have been if Lender had made a Loan Purchase
Demand under Section 2.02 equal to the Demand Amount paid to Lender, then within
fifteen (15) calendar days after Lender's receipt of such Assignment Request,
Lender shall request such written consents as Lender may be required to obtain
("REQUIRED WRITTEN CONSENTS") under the Loan Documents for a sale of such
Assignment Portion of the Loan to Obligor. If such Required Written Consents are
granted and given to Lender within forty-five (45) calendar days after Lender's
requests for such Required Written Consents (such 45 calendar day period being
referred to herein as the "CONSENT PERIOD") then, and subject to the
qualifications set forth below in this Section, Lender shall promptly thereafter
assign such Assignment Portion of the Loan to Obligor as though Lender had given
a Loan Purchase Demand to Obligor and the Demand Amount had been paid as the
Loan Purchase Price, provided that Obligor shall execute the Assignment and
Acceptance in the form required by the terms of the Loan Agreement and pay such
fees as may be required under the Loan Documents in connection with such
assignment, and provided further that Lender shall not be responsible for
obtaining any Required Written Consents (but only to request such Required
Written Consents) and in the event that any Required Written Consent is not
granted and given to Lender within the Consent Period Lender shall not be
obligated to assign any portion of the Loan to Obligor, and provided further
that if Lender is not permitted to assign a portion of the Loan to Obligor (or
Obligor is not permitted to accept an assignment of such portion of the Loan
from Lender) in accordance with the provisions of the Loan Documents, then
Lender shall not in any event be obligated to assign such portion of the Loan to
Obligor. Nothing in this Agreement shall be interpreted as obligating Lender to
assign any portion of the Loan to Obligor in return for payment of the Demand
Amount or as requiring Lender to return the Demand Amount paid to Lender (or any
portion thereof) to Obligor under any circumstances.

        SECTION 2.11. PARTICIPATION REQUEST. If (i) Lender shall have demanded
payment from Obligor under Section 2.01, and (ii) within ten (10) calendar days
after such demand Obligor shall have unconditionally paid to Lender in response
to such demand the Demand Amount, and (iii) within ten (10) calendar days after
Lender's receipt of the Demand Amount Obligor shall have made an Assignment
Request to Lender in writing for Lender to assign to Obligor the Assignment
Portion of the outstanding principal balance of the Loan in accordance with the
provisions of Section 2.10, but (X) the Required Written Consents shall not have
been given to Lender within the Consent Period or (Y) Lender is not permitted to
assign a portion of the Loan to Obligor (or Obligor is not permitted to accept
an assignment of such portion of the Loan from Lender) in accordance with the
provisions of the Loan Documents, then, and subject

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to the qualifications set forth below in this Section, if Oligor shall within
thirty (30) calendar days after the Consent Period make a request to Lender in
writing (a "PARTICIPATION REQUEST") for Lender to grant to Obligor a
participating interest in the Loan, Lender shall grant to Obligor a
participating interest in the Loan, in an amount equal to the amount that the
Assignment Portion would have been under Section 2.10, upon the execution and
delivery by Lender and Obligor of a participation agreement in form and
substance mutually satisfactory to Lender and Obligor (which participation
agreement must also comply with the provisions of the Loan Documents applicable
to participations), and provided further that if Lender is not permitted to
grant a participating interest in the Loan to Obligor in accordance with the
provisions of the Loan Documents, then Lender shall not in any event be
obligated to grant any participating interest in the Loan to Obligor. Nothing in
this Agreement shall be interpreted as obligating Lender to grant any
participating interest in the Loan to Obligor in return for payment of the
Demand Amount or as requiring Lender to return the Demand Amount paid to Lender
(or any portion thereof) to Obligor under any circumstances.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

        Obligor hereby makes the following representations and warranties to
Lender on the date of this Agreement, and Lender shall be entitled to rely upon
the truth, accuracy, and completeness of the following representations and
warranties without regard to any other information that may be now or hereafter
known by or disclosed to Lender:

        SECTION 3.01. EXISTENCE. Obligor (a) is a corporation duly organized,
validly existing and in good standing under the laws of Delaware; and (b) has
all requisite corporate or other power, and has all material governmental
licenses, authorizations, consents, permits and approvals, to own its assets and
carry on its business as now being or as proposed to be conducted.

        SECTION 3.02. ACTION. (a) Obligor has all necessary corporate or other
power, authority and legal right to execute, deliver and perform Obligor's
obligations under this Agreement; (b) the execution, delivery and performance by
Obligor of this Agreement have been duly authorized by all necessary corporate
action on Obligor's part (including any required shareholder or like approvals);
and (c) this Agreement has been duly and validly executed and delivered by
Obligor and constitutes Obligor's legal, valid and binding obligation,
enforceable against Obligor, in accordance with its terms.

        SECTION 3.03. APPROVALS. No authorizations, approvals or consents of,
and no filings or registrations with, any governmental or regulatory authority
or agency, or any securities exchange, are necessary for the execution, delivery
or performance of this Agreement by Obligor or for the legality, validity or
enforceability of this Agreement. The execution, delivery and performance of the
Agreement will not (a) contravene any provision of law, any order of any court
or other agency of government; or (b) contravene the Articles of Incorporation
(or Certificate of Incorporation) or By-laws of Obligor; or (c) be in conflict
with, result in the breach of or constitute (with due notice or lapse of time or
both) a default under any indenture, agreement or other instrument binding upon
Obligor.

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        SECTION 3.04. INFORMATION. Obligor has received a copy of the Loan
Agreement, including Amendment No. 1 thereto, as provided to Lender by WinStar
Communications, and has received from Lender a copy of the Amendment No. 2 as it
will be signed by the parties thereto. Obligor is not relying on any
information, representation or warranty from Lender or any employee, agent, or
other representative of Lender in entering into this Agreement.

                                   ARTICLE IV
                           EVENTS OF DEFAULT; REMEDIES

        SECTION 4.01. EVENTS OF DEFAULT. Each of the following events shall
constitute an Event of Default: (a) Obligor's failure to make any payment when
due under this Agreement, or if Obligor fails to carry out any of its agreements
set forth herein; (b) any representation or warranty of Obligor is materially
inaccurate or incomplete when made or given; (c) Obligor sells, transfers,
encumbers, or otherwise disposes of substantially all of Obligor's assets in one
transaction or a series of related transactions; (d) Obligor merges or
consolidates with any other person in a transaction in which Obligor is not the
surviving corporation; (e) Obligor dissolves; or (f) any petition under federal
bankruptcy law is filed by or against Obligor, or any application is made for
the appointment of a receiver for Obligor or any of Obligor's property, or
Obligor makes a general assignment for the benefit of creditors, or Obligor
becomes insolvent, and in the case of any involuntary petition, and such
petition is not withdrawn or dismissed within sixty (60) calendar days of the
date of filing.

        SECTION 4.02. ACCELERATION. Upon the occurrence of an Event of Default,
and at any time thereafter unless and until such Event of Default has been
waived by Lender in writing or cured, Lender may take any or all of the
following actions against Obligor: (a) declare the Obligations to be due,
whereupon the same shall be immediately due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
Obligor; and/or (b) enforce any and all rights and interests created and
existing under this Agreement and all rights of set-off; provided, however,
without limiting the generality of the foregoing, upon the occurrence of an
Event of Default described in Section 4.01(f) above, the Obligations shall be
immediately due and payable to Lender without any action on the part of Lender,
and without presentment, demand, protest, or other notice of any kind, all of
which are hereby waived.

        SECTION 4.03. DEFAULT INTEREST. If Obligor fails to pay the Guaranteed
Amount or the Loan Purchase Price when due, then Obligor covenants to pay to
Lender interest ("DEFAULT INTEREST") on such unpaid amount at the Default
Interest Rate until all unpaid amounts due under this Agreement have been paid
in full. Default Interest shall be immediately due and payable as and when
accrued. Obligor and Lender agree that the Default Interest provided for under
this Agreement is intended to compensate Lender for the time value of money and
is not a penalty.

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                                   ARTICLE V
                   CONSENTS; WAIVERS; AND GENERAL PROVISIONS

        SECTION 5.01. ACTS BY LENDER. Obligor authorizes Lender, without notice
to Obligor or further consent of Obligor, and without in any way affecting or
impairing Obligor's liability hereunder, from time to time to (a) change the
amount, time or manner of payment amounts due under the Loan Documents; (b)
change or waive strict compliance with any of the terms, covenants, conditions
or provisions of the Loan Documents; (c) amend, renew, extend, modify, change or
supplement any provisions of the Loan Documents; (d) make advances for the
purpose of performing any obligation of Borrower under the Loan Documents; (e)
effect any release, compromise or settlement with Borrower, or any other Person
obligated to repay the Loan; (f) assign portions of its interest in the Loan in
which event, if the assignee is an affiliate of Lender (but not otherwise), this
Agreement will inure to the benefit of Lender's assignee to the extent of such
assignment; or (g) enforce any provisions of the Loan Documents.

        SECTION 5.02. WAIVERS BY OBLIGOR.

            (a) Obligor waives any right to require Lender to: (i) proceed
against Borrower or any other guarantor of the Loan, or (ii) pursue any other
remedy in Lender's power whatsoever, or (iii) except as expressly set forth
herein, notify Obligor of any default by Borrower in the performance of any
agreement of Borrower under the Loan Documents.

            (b) Obligor waives any defense arising by reason of any of the
following: (i) any disability or any counterclaim or right of set-off or other
defense of Borrower, (ii) any lack of authority of Borrower with respect to the
Loan Documents, (iii) the invalidity, illegality or lack of enforceability of
the Loan Documents or any provision thereof from any cause whatsoever, including
any action or inaction by Lender, (iv) the failure of Lender or any other Person
to perfect or maintain perfection of any security interest in any collateral for
the Loan, (v) the cessation from any cause whatsoever of the liability of
Borrower, (vi) that the Loan Documents shall be void or voidable as against
Borrower or any of Borrower's creditors, including a trustee in bankruptcy of
Borrower, by reason of any fact or circumstance, (vii) the delay or failure of
Lender to exercise any of its rights and remedies against the Borrower or any
collateral or security for the Loan Documents or this Agreement, (viii) any
event or circumstance which might otherwise constitute a legal or equitable
discharge of Obligor's obligations hereunder; provided, however, that Obligor
does not waive any defense arising from the due performance by Obligor of the
terms and conditions of this Agreement.

            (c) Obligor waives all presentments, demands for performance,
notices of nonperformance, protests, notices of dishonor, and notices of
acceptances of this Agreement.

        SECTION 5.03. TERM. The term of this Agreement shall commence with the
date of this Agreement and continue in full force and effect and be binding upon
Obligor until the earlier of (a) repayment of the Loan in full, (b) Obligor has
paid the Guaranteed Amount to Lender in accordance with Section 2.01, or has
purchased the Purchased Loan Amount and paid Lender the Loan Purchase Price in
accordance with Section 2.02, together with such interest at the Default
Interest Rate as may be due under Section 4.03, or (c) all Obligations hereunder
shall have been fully paid and satisfied.

                                      -11-

<PAGE>   12

        SECTION 5.04. NOTICES. Any notice or demand required or permitted by or
in connection with this Agreement shall be in writing and shall be made by
telecopy, or by hand delivery, or by overnight delivery service, or by certified
mail, return receipt requested, postage prepaid, addressed to the parties at the
appropriate address set forth below or to such other address as may be hereafter
specified by written notice by the parties to each other. Notice or demand shall
be considered given as of the earlier of the date of actual receipt, or the date
of the telecopy or hand delivery, or one (1) calendar day after delivery to an
overnight delivery service, or three (3) calendar days after the date of
mailing, independent of the date of actual delivery. Notwithstanding the
aforesaid procedures, any notice or demand upon Lender or Obligor, in fact
received by such person, shall be sufficient notice or demand.

        If to Obligor:      Accelerated Networks, Inc.
                            301 Science Drive
                            Moor Park, CA  93021
                            Attn:  Chief Financial Officer
                            Telephone No.: 805-553-9680 Ext. 297
                            Telecopy No.: 805-553-9696

        With copy to:       Jason D. Schauer, Esquire
                            Brobeck, Phleger & Harrison LLP
                            12390 El Camino Real San Diego, CA
                            92130 Telecopy No.: 858-720-2555

        If to Lender:       Siemens Financial Services, Inc.
                            200 Somerset Corporate Boulevard
                            Bridgewater, NJ 08807-2843
                            Attn:  Robert Knapp
                            Telephone No.: 908-429-6003
                            Telecopy No.: 908-429-6073

        With copy to:       Siemens Carrier Networks, LLC
                            900 Broken Sound Parkway(A-3)
                            Boca Raton, FL 33487
                            Attn: Ms. Dolores Taylor
                            Telephone No.: 561-923-6806
                            Telecopy No.: 561-923-8717

        SECTION 5.05. REMEDIES CUMULATIVE. No failure or delay on the part of
Lender in exercising any right, power or privilege hereunder and no course of
dealing between Lender and Obligor shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
otherwise preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder or thereunder. The rights and remedies
provided herein are cumulative and not exclusive of any rights or remedies which
Lender would otherwise have. No notice to or demand on Obligor in any case shall
constitute a waiver of the rights of Lender to any other or further action in
any circumstances without notice or demand.

                                      -12-

<PAGE>   13

        SECTION 5.06. GOVERNING LAW. This Agreement and all other related
instruments and documents and the rights and obligations of the parties
hereunder and thereunder shall, in all respects, be governed by, and construed
in accordance with, the laws of the State of New York (excluding New York
conflict of laws rules), including all matters of construction, validity and
performance.

        SECTION 5.07. MISCELLANEOUS. This Agreement shall not be amended,
changed, waived, discharged or terminated unless such amendment, change, waiver,
discharge or termination is in writing signed by Obligor and Lender. This
Agreement shall inure to the benefit Lender and Lender's successors and assigns
and shall burden Obligor and Obligor's successors and assigns. Any provision of
this Agreement or of any related instrument or document executed pursuant hereto
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
thereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.
This Agreement may be executed in counterparts and each shall be effective as an
original, and a telecopy of this executed Agreement shall be effective as an
original. This Agreement and the amounts referred to or calculated hereunder are
denominated in U.S. dollars.

        SECTION 5.08. ENTIRE AGREEMENT. This Agreement and any documents
executed with this Agreement constitute a complete and exclusive expression of
all the terms of the matters expressed therein and all prior agreements,
statements, and representations, whether written or oral, which relate thereto
in any way are hereby superseded and shall be given no force and effect. No
promise, inducement, or representation has been made by either party which
relates in any way to the matters expressed in this Agreement and in any other
documents executed with this Agreement, other than what is expressly stated in
this Agreement and in any documents executed with this Agreement.

        SECTION 5.09. NO THIRD PARTY BENEFICIARIES. There shall be no third
party beneficiaries of this Agreement.

        SECTION 5.10. WAIVER OF JURY TRIAL. EACH OF THE PARTIES TO THIS
AGREEMENT WAIVES ALL RIGHT TO TRIAL BY JURY OF ANY AND ALL CLAIMS ARISING UNDER
OR RELATING TO THIS AGREEMENT. EACH OF THE PARTIES TO THIS AGREEMENT
ACKNOWLEDGES THAT THIS IS A WAIVER OF A LEGAL RIGHT AND THAT THIS WAIVER IS MADE
KNOWINGLY AND VOLUNTARILY AFTER CONSULTATION WITH, OR THE OPPORTUNITY TO CONSULT
WITH, COUNSEL OF SUCH PARTY'S CHOICE. ALL SUCH CLAIMS SHALL BE TRIED BEFORE A
JUDGE OF A COURT HAVING JURISDICTION, WITHOUT A JURY.

                                      -13-

<PAGE>   14

         IN WITNESS WHEREOF, and intending to be legally bound hereby, the
undersigned parties execute this Agreement as of the day and year first above
written.

WITNESS:                                    SIEMENS FINANCIAL SERVICES, INC.

/s/ Randi Evans-Knowles                     By: /s/ Robert J. Knapp
                                                --------------------------------
                                                Name: Robert J. Knapp
                                                Title: Sr. V.P & CFO

WITNESS:                                    ACCELERATED NETWORKS, INC.

/s/ Ron Hughes                              By: /s/ Frederic T. Boyer
                                                --------------------------------
                                                Name: Frederic T. Boyer
                                                Title: CFO

                                      -14-<PAGE>   1
                                                                   EXHIBIT 10.35

February 5, 2001

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling, Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
Accelerated Networks, Inc.
301 Science Drive
Moorpark, CA 93201

Dear Messrs. Krausz, Kuhling, Tan & Morris:

RE:     Retainer Agreement between Regent Pacific Management Corporation and
        Accelerated Networks, Inc.

I am writing this letter, pursuant to your request, to set forth the terms and
conditions upon which Regent Pacific Management Corporation, a California
corporation ("Regent Pacific"), will be engaged to perform certain management
services for Accelerated Networks, Inc., a Delaware corporation, and its wholly
owned and controlled subsidiaries (collectively, "Accelerated"), under certain
guarantees and indemnities to be provided by the company and the board. This
agreement is contingent upon and subject to an indemnification and guarantee
agreement, in a form acceptable to Regent Pacific.

Included within these services will be the following work product, which Regent
Pacific will supply to Accelerated in accordance with the terms of this letter
and for the agreed-upon cash payments required by this letter:

1.      Regent Pacific agrees to provide a six person crisis team, to
        immediately assume the chief executive and general management
        responsibilities of Accelerated, and to develop and implement a
        restructuring and recovery plan for Accelerated. The goal of this
        assignment shall be to control the immediate crisis situation and
        redirect the company with respect to the potential financial and
        operational restructuring of the ongoing business of Accelerated.

2.      Regent Pacific shall provide the services of Gary J. Sbona, Chairman and
        Chief Executive Officer of Regent Pacific Management Corporation, who
        shall be a part of the crisis team and lead the engagement on behalf of
        Regent Pacific as the board-appointed Chairman and Chief Executive
        Officer of Accelerated. Regent Pacific shall be appointed by the Board
        of Directors to

<PAGE>   2

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 2

        provide General Management services to Accelerated. Both Regent Pacific
        and Mr. Sbona shall report to the Board of Directors of Accelerated and
        shall be solely accountable to the Board for fulfilling the obligations
        of this engagement.

Regent  Pacific's services do not include the following activities and/or work
        product:

        With the exception of Gary J. Sbona, Regent Pacific personnel provided
        under the terms of this engagement shall not be appointed officers of
        Accelerated, and shall not accept nor be held accountable for the
        fiduciary obligations of an officer or director of Accelerated, except
        as mutually agreed upon by the parties.

Regent Pacific is prepared to begin our services this week, contingent upon:

1.      This duly executed retainer agreement on the part of Accelerated;

2.      The transfer of and receipt by Regent Pacific of the required initial
        payments of this retainer agreement;

3.      Duly executed indemnification agreement between Accelerated and Mr.
        Sbona and Accelerated and Regent Pacific in a form acceptable to Regent
        Pacific.

4.      Duly executed employee stock option agreement in a form acceptable to
        Regent Pacific.

In addition to Mr. Sbona, the initial team assigned will be Brian K. Service,
Joseph O. Vogel, H. Michael Hogan, Jeffrey G. Black, Benjamin Di Lello, Thomas
E. Gardner, and Marianne E. Kilkenny, Principals of Regent Pacific. You
understand that Regent Pacific retains the right to assign or interchange these
people with other people as the work progresses, in order to address your
requirements, as long as the fee paid for our services is not increased for the
included work product.

<PAGE>   3

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 3

FEES: We have agreed to provide the work product included in this agreement for
a period of eighteen (18) months, including twelve (12) months of non-cancelable
services. This service shall be $75,000 per week payable in four (4) week
increments, each to be paid in advance of each Regent Pacific standard four-week
billing period. It is agreed and understood between us that the payments of such
cash fees are to be made immediately preceding the start of each four-week
billing period, and that failure to pay such periodic payments when due shall
constitute a breach of this agreement by Accelerated. It is further understood
that Regent Pacific's fees are to be paid in advance of the work to be
performed, and that the initial payment is to be paid on or before February 9,
2001. It is further agreed that such cash payments are earned in full upon
receipt by Regent Pacific, by virtue of our accepting this agreement and the
responsibilities it entails, and are nonrefundable.

ADVANCE RETAINER: In the light of the uncertainty of the situation facing
Accelerated, Accelerated agrees to pay Regent Pacific an advance four (4) weeks
retainer for services which may be rendered and expenses which may be incurred
in connection with this engagement. The amount of that retainer is to be in the
sum of $300,000. The funds shall be deposited in an escrow account titled
"Regent Pacific Management Corporation, for the benefit of Accelerated"
Immediately prior to any cancellation by Accelerated prior to the expiration of
the non-cancelable period or, thereafter, without 60 days written notice, or
immediately upon the filing of any petition in bankruptcy by or against
Accelerated, the retainer, plus any interest earned thereon, shall become the
property of Regent Pacific, free and clear of any claims of Accelerated, and
shall be transferred to Regent Pacific's general account. In such an event the
retainer shall be deemed earned in full by virtue of Regent Pacific's
undertaking this engagement and be nonrefundable. This sum is in addition to and
not in satisfaction of any damages which Regent Pacific may otherwise recover
against Accelerated for breach of this agreement, and reflects Accelerated's
agreement that the retainer represents the minimum fee for Regent Pacific's
acceptance of the agreement and the work undertaken, irrespective of the amount
of time actually spent by Regent Pacific in the course of its employment. In the
event that this agreement expires upon completion of the term, or terminates in
accordance with its cancellation provisions, the escrow account, plus any
interest, will be returned to Accelerated within five business days after such
expiration or termination.

<PAGE>   4

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 4

TERM OF AGREEMENT: The term of this agreement shall be for eighteen (18) months,
unless earlier terminated in accordance with this paragraph. Regent Pacific
hereby commits the availability of its resources to Accelerated under this
agreement for the full eighteen (18) month term of the engagement. Accelerated
may discharge Regent Pacific at any time after the non-cancelable period
provided that Accelerated had delivered 60-day written notice of intent to
cancel this agreement. Regent Pacific may withdraw from this assignment at any
time with Accelerated's consent or for good cause without Accelerated's consent.
Good cause includes Accelerated's breach of this agreement (including
Accelerated's failure to pay any invoice within five working days of
presentation), or any fact or circumstance that would render our continuing
participation in the assignment unethical or unlawful.

EXPENSE REIMBURSEMENT: In addition to the fees, any requests for compensation
will also include certain charges for costs and expenses. Such costs and
expenses will include, among others, charges for messenger services, air
couriers, word processing services, photocopying, airfare, travel and reasonable
living expenses, postage, long distance telephone, legal advice, and other
charges customarily invoiced by professional firms for reimbursement of
out-of-pocket expenses. Said expenses shall not include meal expenses except
when Regent Pacific professionals are engaged in business-related activities and
company travel. Regent Pacific will periodically present invoices to Accelerated
for reimbursement of such charges, and Accelerated agrees to pay such invoices
within five (5) working days of presentation.

We will provide regular progress reviews to Accelerated and its Board of
Directors at approximately biweekly intervals, as the work progresses. These
progress reviews will include a discussion of the alternatives available to
Accelerated, the performance of the company relative to the restructuring of the
ongoing business. In addition, Regent Pacific requires, and Accelerated agrees,
that the Board of Directors of Accelerated will be available to Regent Pacific
on a reasonable consultation and communication basis and will meet with Regent
Pacific in person in regularly scheduled monthly board meetings to review the
status of the engagement.

During the progress of the work, should circumstances warrant, we may apply for
additions to the retainer fees, and attendant increases in the payments
scheduled above. Should we seek such additional compensation in order to
continue the level

<PAGE>   5

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 1

of effort required by the undertaking, we will do so based upon our professional
guideline hourly rates. We understand and acknowledge that nothing in this
agreement obligates Accelerated to pay such additional retainer fees or other
compensation unless the Accelerated Board of Directors shall have agreed to make
such payments after a written request by Regent Pacific. As you know, our
professional guideline hourly rates range from $275 to $500. Our guideline
hourly rates are adjusted periodically, typically on January 1 of each year, to
reflect the advancing experience, capabilities and seniority of our
professionals as well as general economic factors.

It is our firm's practice to charge our clients for services rendered based upon
not only the total number of hours charged at guideline hourly rates, but also
upon such other factors as: the complexity of the problems presented to us; the
amount at issue; the results accomplished; the skill we exercised in
accomplishing those results; the extent to which our services were rendered
after normal business hours or on other-than-normal business days; delay in
receipt of our compensation; and the extent to which we were at risk in being
paid. To the extent that Regent Pacific's request for compensation exceeds the
total number of hours charged at guideline hourly rates, Regent Pacific will
consult with Accelerated before making that request.

Because of the breadth and nature of our practice, from time to time our firm
may work for one client whose interest may be opposed to that of another client,
for which we work in an unrelated matter. Please be assured that, despite any
potential difference in the interests of our clients, we strictly preserve all
client confidences and zealously pursue the interests of each of our clients.
Accelerated agrees that it does not consider such concurrent work in unrelated
matters of Accelerated and any other client of Regent Pacific to be
inappropriate, and therefore waives any objections to any such present or future
concurrent assignments provided, however, that such waiver shall not apply to
any willful misconduct or breach of confidentiality obligations of Regent
Pacific hereunder.

Except in the case of willful misconduct or gross negligence, Accelerated shall
indemnify, defend, and hold Regent Pacific, its officers, directors, principals,
associates, affiliates, employees, agents, and counsel, harmless against any
damages, costs, fines, penalties, liabilities, attorneys' and other professional
fees and disbursements, suffered, incurred by, or asserted against, Regent
Pacific, its officers,

<PAGE>   6

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 6

directors, principals, associates, affiliates, employees, agents, and/or
counsel, including any amounts incurred or paid in settlement or any judgment of
any action, suit, or proceeding brought under any statute, at common law, or
otherwise, which arises under or in connection with the performance by Regent
Pacific of services pursuant to this agreement and any amendment or modification
thereto. The obligations of Accelerated under this paragraph are hereinafter
collectively referred to as "Indemnity Obligations." The Indemnity Obligations
shall survive, for a period of five (5) years, any termination of Regent
Pacific's services under this agreement and any amendment or modification
thereto. Accelerated agrees to promptly tender any payments due to Regent
Pacific, its officers, directors, principals, associates, affiliates, employees,
agents, and/or counsel, under or in respect of the Indemnity Obligations, within
three (3) business days following written demand by Regent Pacific, its
officers, directors, principals, associates, affiliates, employees, agents,
and/or counsel. Accelerated's Indemnity Obligations shall not apply to amounts
paid in settlement of any loss, claim, damage, liability, or action if such
settlement is effected without the consent of Accelerated, which consent shall
not be unreasonably withheld.

CONFIDENTIAL INFORMATION: Regent Pacific and its team of crisis managers shall
have access under this agreement to certain proprietary and/or confidential
information with respect to Accelerated's business. Regent Pacific hereby agrees
to protect such confidential information as though it were Regent Pacific's own
confidential information, in accordance with the following terms and conditions:

1.      Accelerated shall permit Regent Pacific to review financial and
        proprietary information necessary to Regent Pacific's participation in
        Accelerated's management.

2.      Accelerated shall permit, and Regent Pacific shall require, review of
        all Accelerated Board of Directors minutes and all executive actions
        taken within the three months prior to the execution of this agreement.

3.      Regent Pacific shall maintain the confidentiality of all such
        information and prevent the unauthorized disclosure thereof. No such
        information shall be made available for the use of any other party or be
        divulged to others unless it:

<PAGE>   7

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 7

        a.  is independently developed by Regent Pacific, provided that the
            person or persons developing same have had no access to confidential
            information received from Accelerated;

        b.  is or becomes publicly available; or

        c.  is rightfully and lawfully received by Regent Pacific from an
            independent third party.

This agreement is made under the laws of the State of California. If any legal
action arises under this Agreement or by reason of an asserted breach of it, the
prevailing party shall be entitled to recover all costs and expenses, including
reasonable attorney's fees, incurred in enforcing or attempting to enforce the
terms of this agreement.

NON-SOLICITATION: in recognition of the fact that the Regent Pacific individuals
that we provide to Accelerated under this agreement may perform similar services
from time to time for others, this agreement shall not prevent Regent Pacific
from performing such similar services or restrict Regent Pacific from using such
individuals. Accelerated agrees that it shall not, except by mutual agreement
between the parties, during the term of this agreement nor for a period of three
(3) years after its termination, solicit for employment nor employ, whether as
employee or independent contractor or agent, any person who performs services
under this agreement. It is agreed that in the event of a breach of this
paragraph by Accelerated, it would be impractical or extremely difficult to fix
actual damages and, therefore, Regent Pacific and Accelerated agree that if
Accelerated breaches this paragraph, then Accelerated shall pay to Regent
Pacific $390,000 per individual solicited or employed as employee, independent
contractor or agent, as Liquidated Damages and not as a penalty, which is agreed
by Regent Pacific and Accelerated to represent reasonable compensation for the
foreseeable loss that will, in all likelihood, be incurred because of such
breach.

It is our policy to provide such additional services as you may request, in
addition to those covered in this letter, when qualified individuals are
available to fulfill your request. In such instances, the additional services
will be provided and paid for in accordance with Regent Pacific's guideline
hourly rates as contained in

<PAGE>   8

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 8

Regent Pacific's published fee schedules, a copy of which is enclosed with this
agreement.

This constitutes the entire understanding between Regent Pacific and Accelerated
regarding our services. Further, this agreement supersedes and replaces any
prior agreement(s) between the parties. By executing this agreement you
acknowledge that you have read it carefully and understand all of its terms.
This agreement cannot be modified except by further written agreement signed by
each party.

If you have any questions about the foregoing, please call me. If Accelerated is
in agreement with the foregoing, and it accurately represents your understanding
of the agreement between Accelerated and our firm, please approve the enclosed
copy of this letter, and return the approved copy to me, along with the advance
retainer of $300,000 and the first four (4) week service fee of $300,000. Said
payments may be wire-transferred to the account of Regent Pacific Management
Corporation at Comerica Bank, 333 West Santa Clara Street, San Jose, CA 95113,
Account #1890652975, Routing number 121137522. Our contact there is Zona
Peterson at (408) 556-5367. If there are any questions with regard to the terms
set forth herein, kindly contact me immediately. In order to maintain continuity
in scheduling of our resources, we ask that we receive your affirmative response
as soon as possible. In any event, this offer to provide our services will
expire on February 9, 2001 unless accepted by you prior to that date, or
extended in writing by an officer of Regent Pacific. Please understand that we
can assume no responsibility in connection with the services to be provided
under this agreement until the signed copy has been returned and the required
funds as agreed to by us have been received.

Very truly yours,

REGENT PACIFIC MANAGEMENT CORPORATION

/s/ Gary J. Sbona
Gary J. Sbona
Chairman and Chief Executive Officer

<PAGE>   9

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 9

THE FOREGOING IS HEREBY APPROVED AND AGREED TO:

DATED: ____________________, 2001

ACCELERATED NETWORKS, INC.
(Signifies full agreement with all terms and conditions)

BY: /s/ Steven M. Krausz
    -----------------------------------------------------
    Name: Steven M. Krausz                Title: Director
    On Behalf of the Board of Directors

BY: /s/ Robert F. Kuhling Jr.
    -----------------------------------------------------
    Name: Robert F. Kuhling, Jr.          Title: Director
    On Behalf of the Board of Directors

BY: /s/ Lip-Bu Tan
    -----------------------------------------------------
    Name: Lip-Bu Tan                      Title: Director
    On Behalf of the Board of Directors

<PAGE>   10

Mr. Steven M. Krausz, Director
Mr. Robert F. Kuhling Jr., Director
Mr. Lip-Bu Tan, Director
Mr. Peter Morris, Director
February 5, 2001
Page 10

BY: /s/ Peter Morris
    -----------------------------------------------------
    Mr. Peter Morris                      Title: Director
    On Behalf of the Board of Directors

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