Document:

ex10-26

	 	 
	EMPLOYMENT AGREEMENT
	
Exhibit: 10.26

      THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of
the 1st day of June, 2001 by and between Net2000 Communications, Inc. (the
“Employer” or the “Company”) and Duane Albro (the “Executive”).

WITNESSETH:

      WHEREAS:

	 	(1)    Employer desires to retain Executive’s services, upon the terms and
conditions hereafter described, and Executive desires to be employed by
Employer upon such terms and conditions;
	 
	 	(2)    Executive understands and acknowledges that, in connection with this
proposed employment, Executive will meet important customers, vendors,
and referral sources of Employer, and learn of confidential business
information, ways of doing business, and trade secrets of Employer of
which Executive was not aware, and that, accordingly, Executive’s
agreement to and compliance with the covenants and terms set forth in
Sections 7 and 8 of this Agreement are a material and essential condition
to Employer’s agreement to employ Executive;

         NOW, THEREFORE, in consideration of the premises, and the promises,
covenants and agreements hereinafter described, Employer and Executive agree as
follows:

          1. Employment. Employer hereby employs Executive, and Executive hereby
accepts employment with Employer, upon and subject to the terms and conditions
set forth in this Agreement.

          2. Duties. Executive shall serve as the President and Chief Operating
Officer, and perform, under and according to Employer’s direction and control
and to the best of Executive’s abilities, all executive, advisory,
administrative, and/or managerial duties which may be assigned or delegated to
Executive from time to time by Clayton Thomas, Jr., the Chief Executive
Officer (“CEO”) of Employer. Executive shall report directly to Clayton
Thomas, Jr., the CEO, during the Term of this Agreement. If Clayton Thomas,
Jr. ceases being the CEO during the Term of this Agreement, Executive shall
report to the replacement CEO. Executive shall carry out, follow and comply
with all directives, rules, and policies of Employer and Employer’s Board of
Directors (“Board”) and, subject to the CEO’s direction and control, shall have
the authority and responsibilities customarily exercised by a President and
Chief Operating Officer. Executive’s authorities and responsibilities shall
include, without limitation, the following:

	•	 	Managing all day to day operations of the Company;
	 
	•	 	Meeting and exceeding corporate objectives for top line revenue, gross
margin, access line installations, customer retention and other
enumerated milestones;
	 
	•	 	Leadership in setting strategy for new markets, product development,
pricing, and differentiation while executing customer acquisition and
retention for retail, carrier, and alternate channel revenue;
	 
	•	 	Working to develop, implement and/or improve processes, procedures and
systems necessary to facilitate and improve customer care functions in
support of Employer’s business;
	 
	•	 	Responsible for overseeing all aspects of the Company’s
telecommunications network including, without limitation, network
engineering and operations, all switch sites, the network operating
center, 

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	 	 	network vendor relationships, dark fiber deployment,
evaluation and deployment of new technologies, and provisioning of
customer orders;
	 
	•	 	Adopting and implementing information technology initiatives to lead
sales force automation including database management, pricing tools,
and customer relationship management strategies; and
	 
	•	 	Manage Company P/L to budget.

      Executive shall exert best reasonable efforts and devote substantially all
of Executive’s working time, attention and energies to Employer’s business and
the performance of Executive’s duties, and shall not engage in any other
business activity, whether or not such employment or business activity is
pursued for gain, profit or other pecuniary advantage, without Employer’s
express prior written consent.

      3. Term of Employment.

          (a) Executive’s employment with Employer commences as of June 1, 2001 and,
unless earlier terminated pursuant to the provisions of Section 3(b) below,
terminates at the close of business on May 31, 2003 (the “Term”), provided,
however, that commencing on June 1, 2003, and on each annual anniversary of
such date (such date and each annual anniversary being called a “Renewal
Date”), this Agreement automatically shall extend for an additional one-year
period upon the terms described in this paragraph, unless ninety (90) days or
more prior to the Renewal Date, either party gives notice to the other in
accordance with Section 14 that such party elects not to renew the employment
term. If such notice of non-renewal is given, then Executive’s employment shall
terminate at the expiration of the then current term. In the case of each such
renewal, all terms of this Agreement (including those respecting termination)
shall remain in full force and effect.

         (b) Notwithstanding the foregoing, prior to the expiration of the Term (as
the same may be extended): (i) Employer may terminate Executive’s employment,
without prior notice unless otherwise noted, for “Cause”. For purposes of this
Agreement, grounds for termination for “Cause” shall include only the
following: (1) Executive’s failure or refusal to perform any lawful stated
duty or responsibility; (2) misconduct or dishonesty by Executive in
connection with the performance of this Agreement or any other of Executive’s
duties hereunder; (3) disloyalty, misappropriation of Company’s or any of its
affiliate’s funds by Executive, Executive being convicted of a felony or crime
involving moral turpitude, or fraudulent or unethical conduct by Executive
related to or affecting Executive’s employment; (4) failure of Executive to
meet or achieve specific business plans or objectives as determined by the CEO
or Board of Directors of Employer and which have been made known to Executive
(which is not remedied within 45 days after receipt of written notice of the
same is given by Employer
to Executive); or (5) any other breach of this
Agreement by Executive (which is not remedied within 45 days after receipt of
written notice of the same is given by Employer to Executive specifying the
particular circumstances alleged to constitute Cause and Employer’s intention
to terminate Executive’s employment); (ii) Executive’s employment terminates
immediately upon Executive’s death; (iii) Executive’s employment may be
terminated, at Employer’s option, if, due to physical or mental illness,
injury, or condition, Executive is unable to perform any essential function of
Executive’s position with reasonable accommodation for a period of more than 90
consecutive days; (iv) Executive may terminate his employment for “Good Reason”
as defined as follows: (x) any violation of a material term of this Agreement
by Employer (which is not remedied within 45 days after receipt of written
notice of the same is given by Executive to Employer

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specifying the particular
circumstances alleged to constitute Good Reason and Executive’s intention to
terminate his employment); (y) any reduction in or failure to pay Executive’s
Base Salary in accordance with this Agreement; (z) relocation of Executive’s
principal place of business more than thirty (30) miles from Herndon, Virginia;
or (zz) a reduction in Executive’s title or the assignment of Executive to
duties which result in a substantial diminution of Executive’s position, duties
or responsibilities as provided for in this Agreement, excluding an isolated
and/or inadvertent action which is remedied by Employer within 45 days after
written notice of the same is given by Executive to Employer or a temporary or
occasional assignment by the Board or the Chairman of the Board made for
reasons of business necessity in the good faith judgment of the Board or its
Chairman.

         (c) Upon termination of Executive’s employment hereunder, Executive shall
be entitled to receive any Base Salary accrued but unpaid as of such date, any
unused accrued vacation, and unreimbursed business expenses incurred in
accordance with Employer’s existing policies, and shall promptly return to
Employer all of Employer’s tangible and intangible property that is in
Executive’s possession.

         (d) If Executive legitimately terminates Executive’s employment for Good
Reason as defined in Section 3(b) above, or if Employer terminates Executive’s
employment, excluding a termination under Section 3(b)(i), (ii) or (iii),
without Cause or in violation of this Agreement prior to the expiration of the
Term, then Executive shall be entitled to receive: (i) an amount equal to one
time the then current rate of Base Salary being paid to Employer (excluding
bonuses, benefits, or other compensation) on the effective date of such
termination, contingent upon and subject to Executive’s continuing and full
compliance with the provisions of Sections 7 and 8 herein. This sum will be
paid to Executive within ten (10) business days of the termination of
Executive’s employment. and (ii) a one-time payment of the pro-rated portion of
the Executive’s Bonus (as described below) under the bonus plan for Executive
in effect for that fiscal year provided the corporate performance goals for
that Bonus plan for the entire fiscal year are in fact achieved. The pro-rated
portion shall be paid at the same time the Bonus otherwise would have been
payable under the Agreement if Executive had remained in Employer’s employ, and
shall be equal to pro-rated percentage of the Bonus equal to the percentage of
the fiscal year during which Executive was employed by Employer. In addition,
Executive shall continue to receive medical coverage, to the extent offered and
provided pursuant to Section 4(e), in effect as of the termination of
Executive’s employment for an additional six (6) months from the termination
date.

         (e) The provisions of Sections 3, 7, 8, 9, and 14 of this Agreement, and
any related provisions, shall survive and continue after the termination of
this Agreement and after the termination of Executive’s employment.

      4. Compensation. For the services rendered pursuant to this Agreement’s
terms, during Executive’s employment Executive shall receive the following:

      (a) Base Salary. Executive shall be compensated at an annual rate of two
hundred fifty thousand dollars ($250,000) (“Base Salary”).

      (b) Bonus. (a) Executive shall be entitled to receive a bonus (“Bonus”),
payable and

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determined as described below, for each calendar year in which
Executive: (i) meets the enumerated individual and corporate performance goals
established by the Employer’s CEO and Compensation Committee of the Board after
consultation with Executive for such calendar year; and (ii) was employed by
Employer at the end of the calendar year. The Bonus will be paid by March 1st
of the following calendar year. With respect to any such Bonus plan and goals
established by Employer, Executive shall be eligible to qualify for a bonus as
follows: (i) Executive’s bonus target shall be fifty percent (50%) of
Executive’s Base Salary in effect at the beginning of the calendar year; (ii)
of the fifty percent (50%) of Base Salary bonus target described immediately
above, one-half (1/2) (i.e., twenty-five percent (25%) of the Base Salary),
shall be based on Employer achieving and satisfying the corporate goals
established by the CEO and Compensation Committee of the Board, and one-half
(1/2) (i.e., twenty-five percent (25%) of the Base Salary) shall be based on
Executive achieving and satisfying the individual goals and objectives
established by the CEO and Compensation Committee of the Board.

         (c) Review. Employer will review the compensation spelled out above, on
an annual basis.
(d) Withholding. Employer shall withhold from Executive’s compensation
all amounts owed Employer (if any) and all amounts required to be withheld
under federal, state or local law.

         (e) Benefit Plans, Vacation. During Executive’s employment with Employer,
Employer will pay the cost of participation by Executive and his immediate
family in any group health insurance plan (PPO or equivalent) then maintained
by Employer to the same extent provided to employees of Employer generally.
Executive will be entitled to participate in any other benefit plan of Employer
offered by Employer to its employees generally, provided Executive is eligible
to participate under the terms of any such plan subject to applicable terms and
conditions. Executive shall be entitled to receive three (3) weeks paid
vacation per annum.

         (f) Options. Executive shall be granted an option (the “Option”) under
the Net2000 Communications, Inc. 1999 Stock Incentive Plan (“Stock Option
Plan”), subject to the terms of the Stock Option Grant Agreement (“Stock Option
Agreement”), as described below.

	 	1.   The Option will be to purchase Two Hundred Thousand (200,000) shares
of the Company’s common stock. The exercise price of these stock options
will be at a strike price of $1.21 per share and the Option shall vest as
follows: (i) fifty thousand (50,000) of the options granted pursuant to
the Stock Option Agreement shall vest immediately when the option is
granted and Executive has executed and delivered to Employer this
Agreement and the Stock Option Agreement; and (ii) the remainder of the
Option (i.e., 150,000 of the options) will vest at a rate of twenty-five
percent (25%) per year on each anniversary of the Option grant date
(i.e., June 1st), provided that Executive must be in continuous employ of
the Company from the Option grant date through the applicable date upon
which vesting is scheduled to occur.

      2. In the event of a Change of Control, all of Executives stock options
granted hereunder
and otherwise shall automatically vest upon the closing date of the Change
of Control and become immediately exercisable in accordance with the terms of
the applicable Stock Option Agreement. For the

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purposes of this Agreement, the
term “Change in Control” shall mean (i) the acquisition by any individual,
entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”),
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 50% or more of either (A) the then outstanding shares of
common stock of Net2000 Communications, Inc.; or (B) the combined voting power
of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Company Voting
Securities”); (ii) the closing of a sale or conveyance of all or substantially
all of the assets of the Company; or (iii) the effective time of any merger,
share exchange, consolidation or other reorganization or business combination
of the Company if, immediately after such transaction, persons who hold a
majority of the Outstanding Company Voting Securities entitled to vote
generally in the election of directors of the surviving entity are not the same
persons who held a majority of Outstanding Company Voting Securities
immediately prior to such transaction; provided, however, that for purposes of
this Agreement, the following acquisitions shall not constitute a Change in
Control: (y) any acquisition by the Company or an affiliate in which the
Company or the affiliate is the surviving entity; or (z) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company.

         (h) Automobile Allowance. During his employment with Employer. Executive
shall receive an automobile allowance of six hundred dollars ($600) per month.

         (i) Relocation Stipend. In lieu of any other
relocation allowance or other
reimbursement, Executive will be paid a monthly stipend of four thousand
dollars ($4,000) during each month of the first twelve (12) months that
Executive is in continuous employ of the Company on a full-time basis. The
monthly stipend will be grossed up based on Executive’s income tax bracket so
that it is a net payment to Executive, i.e., the Company will pay Executive
such additional compensation as is necessary to place Executive in the same
after tax position he would have been in had no income tax been incurred on the
monthly stipend payment.

      5. Office. During Executive’s employment, unless otherwise agreed to by
Executive in writing, Executive shall be entitled to an office at, and perform
Executive’s duties on a full-time basis principally out of, a corporate office
maintained by Employer in Herndon, Virginia or the immediately surrounding
area.

      6. Expenses. During Executive’s employment, Employer shall reimburse
Executive for reasonable, ordinary and necessary business expenses incurred by
Executive in the performance of his duties for Employer subject to any
budgetary limitations established from time to time by Employer and provided
Executive provides such documentation and information as may then be required
by Employer’s business expense reimbursement policy and as may be required to
satisfy the standards necessary to deduct such expenses for federal income tax
purposes.

      7. Confidential Information.

         (a) Executive acknowledges that Employer is a developing company that
offers services in a competitive industry and that, in the course of developing
its business, Employer has developed

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and will continue to develop and/or
acquire, and Executive will learn, valuable Confidential Information (described
below), which was unknown to Executive prior to Executive’s employment, or
which has been developed by Executive on behalf of Employer; which Confidential
Information only was and will be disclosed to Executive in and under a
relationship of trust and confidence under restrictions of confidentiality. As
used in this Agreement, Confidential Information includes, without limitation
(i) names, addresses, phone numbers, dates and any and all other information
regarding the customers or potential customers and key contacts at customers of
Employer; and (ii) trade secrets, business, sales and financial data, pricing,
costs, financial statements, programs, property, lists, diagrams and drawings,
information concerning the design, components and manufacture of Employer’s
products, market information, vendor information, supplier information,
research reports, technical data, test data, forecasts, financial statements,
price and cost data, financial and marketing plans, manuals, strategies, and
projections of Employer; provided that Confidential Information shall not
include (x) any of the foregoing or other information in the public domain or
previously known or held by Executive, or (y) information required by law to be
disclosed by Executive. Executive agrees that the Confidential Information is a
trade secret for purposes of all applicable laws, and that Confidential
Information would not be disclosed to Executive but for Executive’s execution
of this Agreement.

         (b) Except as required by the duties of Executive’s employment with
Employer, Executive shall never during his employment or for a period of two
(2) years after such employment terminates, directly or indirectly, use,
publish, or otherwise disclose any Confidential Information, without Employer’s
prior written consent. This restriction shall not apply to information which is
already known in the industry generally other than by reason of any actions of
Executive.

         (c) During Executive’s employment with Employer, Executive shall exercise
all due and diligent precautions to protect the integrity and non-disclosure of
the Confidential Information and, upon termination of employment, or otherwise
before then upon request, Executive shall immediately return to Employer all
documents (whether stored in hard copy or electronically) or materials
embodying such Confidential Information or any part thereof (including any
copies thereof) in Executive’s possession or control.

         (d) Executive represents to Employer and agrees that Executive has not
provided, and will not provide to Employer (or utilize in connection with the
performance of his duties), any trade secrets of a prior employer.

      8. Restrictive Covenants.

         (a) Executive acknowledges and agrees that Employer will suffer great loss
and damage if, during Executive’s employment or at any time subsequent to such
employment, Executive were to improperly use or disclose Confidential
Information or goodwill of Employer, or if Executive were to use Executive’s
contacts and relationships with any customer, potential customer, or referral
source of Employer, and therefore agrees that Executive must comply with the
restrictive covenants hereinafter set forth; it being understood at the
execution of this Agreement that the parties acknowledge and agree such
restrictions protect legitimate protectable interests of Employer, with respect
to its trade secrets, customers, and referral sources, are reasonable and
necessary to protect such interests, are compatible with their respective
rights, and do not impair or prevent Executive from earning a living.

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         (b) During Executive’s employment with Employer and for the continuous
period of eighteen (18) months after such employment terminates (irrespective
of whether the Term or any extension thereof expires, the employment term is
non-renewed by either party, or employment is terminated by Executive or
Employer and regardless of the reason for termination), Executive shall not
directly or indirectly, for any reason or purpose whatsoever (other than on
Employer’s behalf in performing Executive’s required duties for Employer),
whether for Executive’s own benefit, or for the benefit or on behalf of, or in
conjunction with, any other corporation, partnership, proprietorship, or other
form of business entity, and whether as an employee (in any executive,
managerial, officer, exempt or sales position), partner, principal, officer,
director, consultant, agent, stockholder or otherwise:

	 		 	(i)	 	contact, call on, solicit the
business of, sell any goods or services of a type then
provided by Employer or any of Employer’s subsidiaries
and/or affiliates to Employer’s current customer base
and/or prospects to whom Employer or any of Employer’s
subsidiaries and/or affiliates is engaged in proposing
its services to;
	 
	(ii)	 	 	solicit or encourage any director, officer, or
other employee or sales agent of Employer or any of Employer’s
subsidiaries and/or affiliates to discontinue that
individual’s status of employment with Employer or any of
Employer’s subsidiaries and/or affiliates, or encourage or
entice such individual to engage or participate in any
activity or employment in competition with Employer; and
	 
	(iii)	 	 	engage in or be interested as a partner,
trustee, director, officer, employee, shareholder, option
holder, consultant or other direct or indirect participant or
beneficiary in any company or entity that is engaged, directly
or indirectly, in any business that is competitive with any
service or product offered by Employer or any of Employer’s
direct or indirect affiliates or operating companies in any
county where Employer or any of Employer’s direct or indirect
affiliates is offering its
services and/or products at the time of such termination of
employment. Notwithstanding the foregoing, the ownership for
investment purposes as a passive investor of stock
constituting not more than 5% of the outstanding stock of a
company shall not be prohibited under this Section 8(b)(iii).

         (c) It is the intention of the parties to restrict Executive’s activities
only to the extent necessary for the protection of Employer’s legitimate
business interests. To the extent that any covenant set forth in this Section
8, or in Section 7 of this Agreement, shall be determined to be invalid or
unenforceable in any respect or to any extent, the covenant shall not be
rendered invalid, but instead shall be automatically amended for such lesser
term or to such lesser extent, or in such other degree, as may grant the
Employer or other party seeking enforcement the maximum protection and
restrictions on Executive’s activities permitted by applicable law in such
circumstances.

         (d) Executive acknowledges and agrees that (i) the separate and distinct
promises in this Agreement are reasonable and necessary in order to protect the
legitimate business interests described

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above, (ii) any violation would result
in irreparable injury to Employer, and (iii) the enforcement of a remedy by way
of injunction or otherwise would not prevent Executive from earning a living.

      9. Non-Waiver of Covenants. Employer’s failure to exercise any of its
rights to enforce the provisions of this Agreement shall not be affected by the
existence or non-existence of any other similar agreement for any other person
employed by Employer, or by Employer’s failure to exercise any of its rights
under this Agreement or any other similar agreement. Employer’s failure to
exercise any of its rights in the event Executive breaches any promise in this
Agreement shall not be construed as a waiver of such breach or prevent Employer
from later enforcing strict compliance with any and all promises, obligations,
and rights set forth in this Agreement.

      10. Assignment, Entire Agreement, Amendment. This Agreement may be
assigned only by Employer, and is freely assignable by Employer. This
Agreement constitutes the entire agreement between the parties concerning the
subject matter of this Agreement and supersedes all prior understandings,
communications and agreements concerning such subject matter; provided that, to
the extent there is any conflict between this Agreement and any stock option
grant agreement or plan, the provisions of this Agreement shall control.
Neither this Agreement, nor any of its terms, can be changed, added to, waived
or supplemented except in a written document signed by Executive and Employer,
except that Employer may adopt or change any vacation, benefit, rules or other
policy generally applicable to employees or a group or class of employees in
its discretion.

      11. Governing Law, Assignment, Miscellaneous.

            (a) This Agreement shall be governed by and construed and interpreted
according to the internal laws of the Commonwealth of Virginia without
reference to conflicts of law principles. The headings of the sections are
inserted for convenience of reference only and shall not be considered to
constitute a part of this Agreement nor to affect the meaning.

            (b) If any one or more provisions contained in this Agreement, or in the
application
thereof, shall be held to be invalid, illegal, or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions of this
Agreement shall not in any way be affected or impaired. Nothing in this
Agreement shall be deemed to require Employer or Executive to take any action
or perform any obligation which would be contrary to or inconsistent with a
court order.

            (c) In any suit to enforce this Agreement, both parties agree that venue
and jurisdiction is proper in the County in Virginia in which Herndon, Virginia
is located and, if federal jurisdiction exists, the federal district court for
the district in which Herndon, Virginia is located, and the parties hereby
waive any objection to jurisdiction and venue in any such forum described in
this Section 12(c) and any claim that such forum is not the most convenient
forum.

      12. Acknowledgment. By signing this Agreement, Executive and Employer each
acknowledge and agree that they each have read the Agreement, understand and
intend to fulfill each and every one of the covenants and obligations in this
Agreement, understand this is a legally binding agreement, and acknowledge
receiving a copy of the Agreement.

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      13. Notice. Every notice, demand or other communication required or
contemplated by this Agreement shall be in writing and deemed to have been made
either when personally delivered to the respective party or sent via overnight
mail, return receipt requested, to the address set forth below under such
party’s signature, or to such changed address as either party may have given by
written notice to the other party.

      14. Indemnification. Executive shall be entitled to indemnification to
the extent provided under the Company’s Articles of Incorporation and By-Laws
and to coverage under the Company’s liability insurance for directors and
officers subject to the terms and conditions of such insurance coverage.

      IN WITNESS WHEREOF, the parties hereto have signed this Agreement below,
this 1st day of June, 2001.

	 	 	 	 
			
NET2000 COMMUNICATIONS, INC.
	 
	By:	/s/ Duane Albro             	By:	
 /s/ Clayton Thomas          
		Duane Albro

Residing at:

30 Cedar Lane

Babylon, New York 11702		
Clayton Thomas

Chief Executive Officer & Chairman

2180 Fox Mill Road

Herndon, Virginia 20171

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MASTER CONSULTING SERVICES AGREEMENT          Exhibit: 10.27

This agreement for professional services (the “Agreement”) is made and entered
into as of June 1, 2001 (“Effective Date”), by and between Clyde Heintzelman,
residing at 15105 Sunflower Court, Rockville, Maryland 20853 (“Consultant”) and
Net2000 Communications Services, Inc., a Delaware corporation (“Net2000”), with
offices at 2180 Fox Mill Road, Herndon, VA 20171.

1.      SERVICES AND SCOPE OF WORK

1.1 Services. Consultant agrees to perform for Net2000 the tasks,
responsibilities and services (the “Services”) described on the attached task
specific schedule(s) (individually, a “Statement of Work” or “SOW”) to which
the parties may agree from time to time, with each Statement of Work to be
consecutively numbered and attached hereto. Such services shall be provided in
accordance with the provisions of this Agreement and the applicable Statement
of Work and compensation shall be in accordance with the terms specified in the
applicable Statement of Work executed by both parties.

1.2 Statement of Work. Unless otherwise agreed by the parties in writing, each
Statement of Work shall be in writing and include the following information:
(i) a description of the Services to be performed; (ii) a list of deliverables
to be provided by Consultant, (the “Deliverables”); (iv) the method of
compensation to be provided to the Consultant (e.g., monthly or weekly payment,
time and materials, firm fixed price or otherwise) and other appropriate
pricing terms such as hourly rates; and (v) other information the parties
mutually agree to include.

2.      TIME REPORTS AND EXPENSES

2.1 Time Reports. For Services performed on a time and materials basis,
Consultant will be compensated in accordance with the applicable Statement of
Work for actual work performed.

2.2 Out-of-Pocket Expenses. Net2000 will reimburse Consultant for
“Out-of-Pocket Expenses” which shall include reasonable, necessary and actual
out-of-pocket expenses incurred by Consultant in order to perform the Services
and travel and lodging, but shall not include Consultant’s overhead costs (or
allocations thereof) or administrative expenses.

2.3 Payment Terms and Conditions. (a) Net2000 shall pay Consultant for all
Services performed under a mutually agreed upon written Statement of Work and
for any constructive or express changes thereto, pursuant to the following
terms and conditions: Consultant will submit the monthly charges and/or
expenses to be invoiced for Services performed under any Statement of Work to
Net2000 for review and approval. Monthly progress payments and expenses will be
invoiced over the duration of the project and shall be paid by Net2000
approximately thirty (30) days after Net2000’s receipt of such invoice. In the
event of any disputed amount, Net2000 and Consultant will work together to
resolve issues relating to disputed amounts; and (b) in consideration of
Consultant agreeing to provide consulting services to Net2000 in accordance
with Statement of Work 1.0 as attached hereto and other Statements of Work that
might be agreed to between Consultant and Net2000, Net2000 will award to
Consultant one hundred thousand (100,000) vested stock options subject to
approval by the Compensation Committee of the Net2000 Communications, Inc.
Board of Directors and subject to the terms and conditions of the Net2000 1999
Stock Incentive Plan and the Stock Option Grant Agreement.

2.4 Equipment and Administrative Support. In order to provide consulting
services to Net2000 in accordance with this Agreement, Net2000 will provide to
Consultant, at no charge to Consultant, use of a laptop computer, a Net2000
e-mail account and voicemail account, a pager and wireless telephone, and an
ISDN line. Additionally, from time to time, Net2000 will provide Consultant
with any necessary administrative support as may be needed to assist Consultant
in providing services pursuant to this Agreement.

PROGRESS REPORTS AND MEETINGS

2.5 Reports. Consultant shall submit a detailed written progress report to
Clayton Thomas, Jr. as reasonably requested by Net2000 (but in no event less
often than once each month, unless mutually agreed), during the term of each
Statement of Work. Such progress reports will detail the current status of
Consultant activities, the progress of

1

Confidential and Proprietary

the Services being performed, and specific resources expended since the last
report (as well as a cumulative total to date). The progress report shall also
identify both actual and anticipated problem areas, the impact thereof on
Consultant’s work effort, and action being taken or alternative actions to be
taken to remedy such problems.

3.      LIMITATION OF LIABILITY

4.1      IN NO EVENT SHALL NET2000 BE LIABLE TO CONSULTANT FOR ANY INDIRECT,
SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE LOSS OR DAMAGE OF ANY KIND,
INCLUDING LOST PROFITS (WHETHER OR NOT NET2000 HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH LOSS OR DAMAGES) BY REASON OF ANY ACT OR OMISSION IN ITS
PERFORMANCE UNDER THIS AGREEMENT.

4.      OWNERSHIP

4.1 Services Made For Hire. All Deliverables developed for and provided to
Net2000 by Consultant in performing the Services shall be deemed “works made
for hire” and the sole and exclusive property of Net2000 unless otherwise
agreed in writing. To the extent that any such work is not deemed a “work made
for hire” and Net2000 property by operation of law, Consultant hereby
irrevocably assigns, transfers and conveys (now and in the future) to Net2000
all of its right, title and interest in such work, including but not limited to
all rights of patent, copyright, trademark or other proprietary rights in such
work.

4.2 Ownership Provisions. Consultant agrees that it shall include and enforce
such ownership provisions in all subcontracts, if any, to ensure the
exclusivity of Net2000 ownership as described in Section 5.1 above. Net2000,
its successors and assigns, shall have the unfettered right to obtain, and to
hold in its own name, patents, copyrights, registrations, or such other
intellectual property rights and protections as may be appropriate.

5.      CONFIDENTIALITY AND PROPRIETARY RIGHTS

5.1 Non-Disclosure. Consultant shall preserve as strictly confidential and
proprietary, whether in tangible or intangible form and regardless of the
media, all information and material, including but not limited to Net2000
information, materials, strategic plans, network architecture, financial
information, personnel files, Net2000 (or potential Net2000) lists, work and
tasks performed and reports provided pursuant to this Agreement, writings,
improvements or discoveries, whether or not copyrightable or patentable, which
are written, conceived, made or discovered by Consultant and are in any way
related to the performance of this Agreement, data or other information that
Net2000 may provide to Consultant, or Consultant may receive, in connection
with this Agreement or related Statements of Work (collectively “Confidential
Information”). Consultant shall hold the Confidential Information in
confidence, with the same degree of care that it applies to its own
confidential information of like importance, and never less than reasonable
care, except that Consultant may disseminate such Confidential Information to
subcontractors, if any, provided that such subcontractors are on a need to know
basis and have signed non-disclosure agreements, prior to such dissemination.
Consultant agrees to preserve any copyright, trademark and other proprietary
rights notices on all Confidential Information. The foregoing obligations shall
survive termination or expiration of this Agreement or any Statement of Work.

6.      TERM AND TERMINATION

6.1 Term. The term of this Agreement will commence on the Effective Date and
will continue in effect for at least one hundred twenty days (120) days or
until both parties mutually agree to terminate, unless sooner terminated
pursuant to this Article 7. In the event of the termination of this Agreement,
it shall remain in full force and effect with respect to any then-outstanding
Statements of Work issued under this Agreement until all such Statements of
Work are completed, expired or terminated.

6.2 Termination for Cause. This Agreement and/or any Statement of Work issued
under it may be terminated by either party (reserving cumulatively all other
rights and remedies at law or in equity unless expressly excluded herein) in
the event the other party has materially breached this Agreement or any
Statement of Work including, but not limited to, Net2000’s failure to pay
undisputed amounts due under this Agreement or any Statement of Work (i)

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upon receipt of written notice of termination if such material breach is
incapable of cure; or (ii) upon the expiration of thirty (30) days (or such
additional cure period as the non-breaching party may authorize in writing)
after receipt of written notice of termination if the material breach is
capable of cure and has not been cured. Waiver of a particular material breach
shall not imply waiver of any other material breach. Each party agrees to
continue performing its obligations under this Agreement while any dispute is
being resolved except to the extent the issue in dispute precludes performance
and the parties have not mutually agreed to continue performance. In the event
of material breach, Net2000 reserves the right to withhold payment for disputed
amounts for services that are part of the material breach dispute until the
particular material breach is resolved.

6.3 Termination for Convenience. Net2000 may terminate this Agreement and/or
any particular Statement of Work, or any portion thereof, for convenience and
without cause. Exercise of this right must be accomplished by giving
Consultant prior written notice designating the termination date (which
termination date shall not be less than thirty (30) days following such notice)
and by paying Consultant all non-disputed sums due Consultant for work actually
performed under a particular Statement of Work up until the date of
termination, including a pro-rata portion of the next-scheduled payment for any
partially completed Services, determined on a percentage-to-completion basis
and including reimbursement of discounts which would not otherwise be offered
under a Statement of Work of short duration. In the event that a purported
termination for cause by Net2000 under Section 7.2 above is determined by a
competent authority not to be properly a termination for cause, then such
termination by Net2000 shall be deemed to be a termination for convenience
under this Section 7.3

6.4 Statements of Work. The termination of any particular Statement of Work
shall not affect the parties’ respective duties and obligations under any other
Statements of Work then in effect, except as to discounts offered by Consultant
to Net2000.

7.      TRAVEL

8.1      Net2000 may request Consultant to travel in the performance of duties.

8.2      Travel Reimbursement Procedure.

	(a)	 	 	Consultant shall initially be responsible for travel expenses.
Consultant will then invoice Net2000 for the travel. All travel,
transportation and related expense receipts shall accompany the invoices
for which reimbursement is sought.
	 
	(b)	 	 	Expense reports must be filed within thirty (30) days of completion of
travel and invoiced on the next regular invoice submission to Net2000.
	 
	(c)	 	 	Net2000-approved travel and related Net2000-approved out-of pocket
expenses incurred in performing Services for Net2000 under the Agreement
shall be invoiced to Net2000 at cost.
	 
	(d)	 	 	Reimbursement will be as follows:

            (1) Commercial transportation—Reimbursable on an “incurred cost” basis
at economy, tourist or coach rates.

            (2) Private automobile—you will receive a car allowance of $400 per month
as reimbursement for driving between and among various Net2000 locations,
parking, tolls, etc. and shall not be entitled to any other reimbursement for
use of your private automobile.

            (3) Per diem—Reimbursable for actual lodging and local transportation.
Actual meal expenses shall not exceed $30.00 per day

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Confidential and Proprietary

8.      GENERAL

8.1 Informal Dispute Resolution. The parties agree that, prior to initiating
formal dispute resolution, they will attempt to resolve disputes informally by
working together to promptly address problems and escalate issues within their
respective companies as reasonably required.

8.2      Notices. All notices under this Agreement shall be deemed duly given upon
delivery, if delivered by hand, or three days after posting, if sent by
certified mail, return receipt requested, to the addresses set forth below or
to such other address as either party may designate by notice hereto.

	 	 	 
	For Net2000:		
Net2000 Communications Services, Inc
	
	
	
	

			
2180 Fox Mill Road
	
	
	
	

			
Herndon, VA, 20171
	
	
	
	

			
Attn: Legal Dept.

	 	 	 
	For Consultant:		
Clyde Heintzelman
	
	
	
	

			
15105 Sunflower Court
	
	
	
	

			
Rockville, Maryland 20853

9.3      Governing Law

      This Agreement shall be interpreted, construed and governed by the laws of
the State of New York, without regard to conflict of law provisions.

9.4 Entire Agreement. This Agreement, together with any Statement of Work,
constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof and may not be modified except by an instrument in
writing signed by a duly authorized representative of each of the parties. All
prior agreements, documents, proposals, representations, statements,
negotiations, and undertakings, whether written or oral, are superseded by this
Agreement. This Agreement shall be binding upon the Net2000 and Consultant and
their permitted successors and assigns.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.

	 	 	 
	Clyde Heintzelman		
Net2000 Communications Services, Inc.
	 
	By /s/ Clyde Heintzelman		
By Clayton Thomas, Jr.

     Clayton Thomas, Jr.

     CEO & Chairman
	 
	Date June 1, 2001		
Date July 10, 2001

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Confidential and Proprietary

STATEMENT OF WORK      1.0(6/01/01)

	 	 	 
	Individual:		
Clyde Heintzelman
	 
	
	
	
	

	Task Description:		
Responsible for: (1) Working with Net2000 personnel to resolve the lien dispute with the general
contractor at the former Net2000 Chicago switch site including, without limitation, seeking return of
the $750,000 escrow balance and sale of unneeded equipment and supplies in Chicago; (2) Developing
and implementing a plan for mitigating and extricating Net2000’s lease obligations associated with
the Dallas and Atlanta switch site leases; (3) provide advisory support, analysis, and strategy for
integrating Net2000’s acquisition of Vision I.T. including, without limitation, support for federal,
state, and local government sales, development and rollout of new products (e.g., video over IP),
adoption of new policies and procedures, aligning east and west coast operations, serving as a
liaison for Randy Harrell on the east coast, and addressing any earnout issues; (4) provide support
and guidance on possible M&A activities; and (5) any other matters or projects mutually agreed upon
by Consultant and Clayton Thomas.
	 
	
	
	
	

	Compensation/Hours:		
Compensation shall be at an annualized rate of $250,000 salary pro rated and paid in monthly
increments of $20,833.33 during the term of this Statement of Work 1.0 (SOW) while Consultant
continues to provide consulting services in accordance with this SOW. Consultant shall be required
to work at least 40 hours per week and, when necessary, attend meetings at Net2000 headquarters in
Herndon, Virginia, Net2000 offices in McLean, Virginia, or other offices designated by Net2000 and
agreeable to by Consultant.
	 
	
	
	
	

	Term:		
The term of this Statement of Work will commence on the date signed by Net2000 below and will
continue until both parties mutually agree to terminate, unless sooner terminated pursuant to the
Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.

	 	 	 
	Clyde Heintzelman		
Net2000 Communications Services, Inc.
	 
	By /s/ Clyde Heintzelman		
By Clayton Thomas, Jr.

     Clayton Thomas, Jr.

     CEO & Chairman
	 
	Date June 1, 2001		
Date July 10, 2001

5

Confidential and Proprietary

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