Document:

Exhibit 4.2

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES OR BLUE SKY LAWS AND NEITHER THE SECURITIES NOR ANY
INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION UNDER SUCH ACT OR LAWS AND THE
RULES AND REGULATIONS THEREUNDER. 

WAVE2WAVE COMMUNICATIONS, INC.

COMMON STOCK WARRANT

	
  

 	
  

 
	
 WARRANT NO. XX

 	
 [_______]

 

This certifies that, for value received, Lee Haskin
(the “Holder”), is entitled to purchase from Wave2Wave Communications,
Inc., a Delaware corporation (the “Corporation”), [_______] shares of
the Corporation’s Common Stock, at a per share price (the “Exercise Price”)
equal to $[_______], at any time or from time to time during the Exercise
Period. As used herein, “Exercise Period” will mean the period commencing on
the date hereof and ending at midnight on the ten year anniversary of the date
hereof. 

                         Certain terms used in this Warrant are defined in Section 10 herein.

          1.
Exercise of Warrant.

                         At
the option of the Holder, the Holder may exercise the rights represented by
this Warrant as follows:

                    (a)
The rights represented by this Warrant may be exercised by the Holder
hereof, in whole or in part at any time or from time to time during the
Exercise Period, by delivering to the Corporation at its offices set forth on
the signature pages hereof, the following three items: (i) a written notice
executed by the Holder (or its authorized representative) electing to exercise
all or any portion of this Warrant, and if the Holder is exercising this
Warrant in part, identifying the number of Warrant Shares to be acquired, such
notice to be substantially in the Form of Subscription attached hereto as Attachment
1, (ii) this Warrant and (iii) payment to the Corporation of the Exercise
Price for each share (or fraction thereof) being purchased by delivery of any
combination of one or more of the following: cash, wire transfer or check. 

                    (b)
In the event of any exercise of the rights represented by this Warrant,
a certificate or certificates for the Warrant Shares, registered in the name of
the Holder or its designee, will be delivered to the Holder hereof within a
reasonable time, not exceeding fifteen (15) days, after the rights represented
by this Warrant will have been so exercised, and, unless this Warrant has
expired, a new Warrant representing the number of Warrant Shares (including any
fractional share, if any) with respect to which this Warrant will not then have
been exercised will also be issued to the Person entitled to receive the same
within such time. The Person in whose name any certificate for Warrant Shares
is issued upon exercise of this Warrant will for all 

purposes be deemed to have become the Holder of record
of such shares on the date on which this Warrant was surrendered and payment of
the Exercise Price was made, irrespective of the date of delivery of such
certificate. The Corporation will pay all expenses, taxes (other than transfer
taxes) and other charges payable in connection with the preparation, issuance
and delivery of share certificates for Warrant Shares and new Warrants. 

                    (c)
No fractional shares of Common Stock will be issued upon exercise of
this Warrant. Instead of any fractional shares of Common Stock which would
otherwise be issuable upon exercise of any such Warrant, the Holder may deduct
from the aggregate Exercise Price an amount equal to the product of (i) the
price of one share of Common Stock and (ii) such fractional interest.

          2. Covenants of the Corporation.

                         The
Corporation covenants and agrees that:

                    (a)
All Warrant Shares which may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be validly issued, fully paid
and non-assessable, and free from all taxes, liens, security interests, charges
or other encumbrances with respect to the issuance thereof. 

                    (b)
The Corporation will at all times keep reserved, free from preemptive
rights, out of its authorized but unissued shares of Common Stock, solely for
the purpose of effecting the exercise of this Warrant, sufficient number of
shares of Common Stock to provide for the Warrant Shares.

          3. Adjustment of Shares.

                    (a)
In the event of any capital reorganization of the Corporation, any
reclassification of the stock of the Corporation (other than a change in par
value or from par value to no par value or from no par value to par value or as
a result of a stock dividend or subdivision, split-up or combination of shares)
or any consolidation or merger of the Corporation, this Warrant will after such
reorganization, reclassification, consolidation or merger be exercisable for
the kind and number of shares of stock or other securities or property of the
Corporation (or of the corporation resulting from such consolidation or
surviving such merger) that any holder of the number of shares of Common Stock
deliverable upon exercise of this Warrant (immediately prior to the time of
such reorganization, reclassification, consolidation or merger) would have been
entitled upon such reorganization, reclassification, consolidation or merger.
The provisions of this clause will similarly apply to successive
reorganizations, reclassifications, consolidations or mergers.

                    (b)
Whenever the Warrant will be adjusted as provided in Section 3(a), the Corporation will make available for inspection
during regular business hours, at its principal executive offices or at such
other place as may be designated by the Corporation, a statement, signed by its
chief executive officer, showing in detail the facts requiring such adjustment
and the Warrant Shares that will be in effect after such adjustment. The
Corporation will also cause a copy of such statement to be sent by first class
certified mail, return receipt requested and postage prepaid, to the Holder at
such Holder’s address appearing on the Corporation’s records. 

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Where appropriate, such copy may be given in advance
and may be included as part of any notice required to be mailed under the
provisions of Section 3(c) below.

                    (c)
If the Corporation will propose to take any action of the types described in
Section 3(a), the Corporation will
give notice to the Holder, which notice will specify the record date, if any,
with respect to any such action and the date on which such action is to take
place. Such notice will also set forth such facts with respect thereto as will
be reasonably necessary to indicate the effect of such action (to the extent
such effect may be known at the date of such notice) on the number, kind or class
of shares or other securities or property which will be deliverable or
purchasable upon the occurrence of such action or deliverable upon exercise of
this Warrant. In the case of any action which would require the fixing of a
record date, such notice will be given at least twenty (20) days prior to the
date so fixed, and in case of all other actions, such notice will be given at
least thirty (30) days prior to the taking of such proposed action. Failure to
give such notice, or any defect therein, will not affect the legality or
validity of any such action.

                    (d)
The computations of all amounts under this Section 3 will be made assuming all
other anti-dilution or similar adjustments to be made to the terms of all other
securities resulting from the transaction causing an adjustment pursuant to
this Section 3 have previously been made so as to maintain the relative
economic interest of the Warrants vis a vis all other
securities issued by the Corporation.

          4. No Stockholder Rights; Limitation of Liability.

                         The
Holder will not be entitled to any voting rights or other rights as a
stockholder of the Corporation by reason of the rights granted under this
Warrant until the Holder will purchase shares of Common Stock hereunder. No
provision hereof, in the absence of affirmative action by the Holder to
purchase Warrant Shares, and no enumeration herein of the rights or privileges
of the Holder will give rise to any liability of the Holder for the payment of
the Exercise Price or as a stockholder of the Corporation.

          5.
Warrant Agency; Transfer, Exchange and Replacement of Warrants.

                    (a)
Warrant Agency. As long as any of the Warrants remain outstanding, the
Corporation will perform the obligations of and be the warrant agency with
respect to the Warrants (the “Warrant Agency”) at its address set forth
on the signature pages hereof or at such other address as the Corporation will
specify by notice to the Holder.

                    (b)
Ownership of Warrant. The Corporation may deem and treat the Person in
whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by any
Person other than the Corporation) for all purposes and will not be affected by
any notice to the contrary, until due presentment of this Warrant for
registration of transfer as provided in this Section 5.

                    (c)
Transfer of Warrant. The Holder may not sell, assign, transfer, pledge,
hypothecate or otherwise dispose of all or any portion of this Warrant
(including the Warrant Shares) at any time without the prior written consent of
the Corporation.

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                    (d)
Division or Combination of Warrants. This Warrant may be divided or
combined with other warrants upon presentment hereof and of any warrant or
warrants with which this Warrant is to be combined at the Warrant Agency,
together with a written notice specifying the names and denominations in which
the new warrant or warrants are to be issued, signed by the holders hereof and
thereof or their respective duly authorized agents or attorneys. Subject to
compliance with Section 5(c) as to any transfer or assignment which may be
involved in the division or combination, the Corporation will execute and
deliver a new warrant or warrants in exchange for the warrant or warrants to be
divided or combined in accordance with such notice.

                    (e)
Loss, Theft, Destruction of Warrant Certificates. Upon receipt of evidence
by the Corporation of the ownership of and the loss, theft, destruction or
mutilation of the Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security by the Corporation or, in
the case of any such mutilation, upon surrender and cancellation of the
Warrant, the Corporation will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing
the right to purchase the same aggregate number of shares of Common Stock.

          6.
Successors.

                         All
the provisions of this Warrant by or for the benefit of the Corporation or the
Holder will bind and inure to the benefit of their respective successors and
assigns.

          7. Headings.

                         The
headings of sections of this Warrant have been inserted for convenience of
reference only, are not to be considered a part hereof and will in no way
modify or restrict any of the terms or provisions hereof.

          8.
Remedies; Amendment and Waiver.

                    (a)
No failure or delay of any party in exercising any power or right hereunder
will operate as a waiver thereof (except where a specific time period for the
exercise of such power or right is expressly set forth herein), nor will any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. No notice
or demand on any party in any case will entitle such party to any other or
future notice or demand in similar or other circumstances.

                    (b)
Except as otherwise provided herein, the provisions of the Warrants may be
amended only if the Corporation has obtained the written consent of the Holder.
Any such amendment, modification or waiver effected pursuant to and in
accordance with the provisions of this Section 80 will be binding upon the
holders of all Warrants and Warrant Shares, upon each future holder thereof and
upon the Corporation. In the event of any such amendment, modification or
waiver, if appropriate, notation thereof will be made on all Warrants
thereafter surrendered for registration of transfer or exchange.

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          9.
Severability.

                         Whenever
possible, each provision of this Warrant will be interpreted in such manner as
to be effective and valid under Applicable Law, but if any provision of this
Warrant is held to be invalid, illegal or unenforceable in any respect under
any Applicable Law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or any other jurisdiction,
and such invalid, void or otherwise unenforceable provisions will be null and
void. It is the intent of the parties, however, that any invalid, void or
otherwise unenforceable provisions be automatically replaced by other
provisions which are as similar as possible in terms to such invalid, void or
otherwise unenforceable provisions but are valid and enforceable to the fullest
extent permitted by law.

          10.
Definitions; Interpretation.

                    (a)
Definitions. The following terms have meanings set forth below:

                         “Applicable
Law” will mean, with respect to any Person, property, transaction or event,
all present and future applicable laws, statutes, regulations, treaties,
judgments and decrees and all applicable official directives, rules, consents,
approvals, authorizations, orders, guidelines and policies of any Governmental
Authority or Persons having authority over or applicable to such Person or any
of its assets or properties.

                         “Business
Day” will mean any day other than a Saturday, Sunday or a day on which
banks are authorized or required to be closed in New York City.

                         “Common
Stock” will mean the common voting equity securities, of the Corporation. 

                         “Governmental
Authority” will mean the United States Congress, any legislature, assembly,
council or other legislative body and any Federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality,
or any court or any judicial or quasi-judicial body or authority, in each case
whether of or involving the United States of America or any political
subdivision thereof.

                         “Person”
will be construed broadly and will include any natural person, company,
partnership, joint venture, corporation, business trust, unincorporated
organization or Governmental Authority.

                         “Warrant
Agency” has the meaning given to such term in Section 5.

                         “Warrant
Shares” means the Common Stock issued or issuable upon exercise of the
Warrants; provided, that if there is a change such that the securities
issuable upon exercise of the Warrants are issued by an entity other than the
Corporation or there is a change in the class of securities so issuable, then
the term “Warrant Shares” will mean the securities issuable upon exercise of
the Warrants.

                    (b)
Terms Generally. The definitions contained in this Warrant will apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any 

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pronoun will include the corresponding masculine,
feminine and neuter forms. The words “include,” “includes” and “including” will
be deemed to be followed by the phrase “without limitation.”

          11.
Governing Law.

                    (a)
ALL QUESTIONS CONCERNING THE CONSTRUCTION, INTERPRETATION AND VALIDITY OF THIS
AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC
LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT
OF LAW PROVISION OR RULE (WHETHER IN THE STATE OF NEW YORK OR ANY OTHER
JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION
OTHER THAN THE STATE OF NEW YORK. 

                    (b)
FOR ALL PURPOSES OF THIS WARRANT AND FOR ALL PURPOSES OF ANY SUIT OR PROCEEDING
ARISING OUT OF OR RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, EACH OF THE PARTIES HEREBY SUBMITS
TO THE PERSONAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
FEDERAL COURTS OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK, AND ANY
APPELLATE COURT FROM ANY SUCH STATE OR FEDERAL COURT, AND HEREBY IRREVOCABLY
AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK COURT OR, TO THE EXTENT
PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HEREBY AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING WILL BE CONCLUSIVE AND MAY BE
ENFORCED IN ANY OTHER JURISDICTION WITHIN THE UNITED STATES BY SUIT ON THE
JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY UNITED STATES LAW. EACH OF THE
PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT
MAY LEGALLY AND EFFECTIVELY DO SO, (i) ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS WARRANT OR ANY RELATED MATTER IN ANY NEW YORK STATE
OR FEDERAL COURT SITTING IN NEW YORK, (ii) THE DEFENSE OF AN INCONVENIENT FORUM
TO THE MAINTENANCE OF ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY SUCH COURT AND
(iii) TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING.

          12.
Notices.

All notices, demands and requests of any kind to be
delivered to any party hereto in connection with this Warrant will be in
writing, (a) delivered personally, (b) sent by internationally-recognized
overnight courier, (c) sent by first class, registered or certified mail,
return receipt requested or (d) by telecopy, telegram or other means of
recorded telecommunication with confirmed receipt (with hard copy to follow by
first class mail). Any notice, demand or request so delivered will constitute
valid notice under this Warrant and will be deemed to have been received (iv)
on the day of actual delivery in the case of personal delivery, (v) on the next

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Business Day after the date when sent, in the case of
delivery by internationally-recognized overnight courier, (vi) on the tenth
Business Day after the date of deposit in the U.S. mail in the case of mailing
or (vii) one Business Day after being sent by telecopy with confirmed receipt
(with hard copy to follow by first class mail). The mailing address of the
Corporation is set forth on the signature pages hereto, and the mailing
addresses of the Holder is [_______]. Any party hereto may, from time to time
by notice in writing served upon the other as aforesaid, designate a different
mailing address or a different person to which all such notices, demands or
requests thereafter are to be addressed.

*   *   *   *

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                    IN
WITNESS WHEREOF, WAVE2WAVE COMMUNICATIONS, INC. has caused this Warrant to be
executed by its duly authorized officers under its corporate seal, and this
Warrant to be dated as of the date first set forth above.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAVE2WAVE COMMUNICATIONS, INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
 Title: 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Address:

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Continental Plaza, 6th Floor

 433 Hackensack Avenue

 Hackensack, New Jersey 07601

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Attention: President

 	
  

 

FORM OF
SUBSCRIPTION

[To be signed upon
exercise of Warrant]

TO: Wave2Wave Communications, Inc.

                    The
undersigned, the holder of the within Warrant, hereby irrevocably elects to
exercise the purchase right represented by such Warrant for, and to purchase
thereunder, ______ Common Shares of Wave2Wave Communications, Inc., and
herewith tenders payment of [identify amount and form of payment] in full
payment of the purchase price for such shares, and requests that the
certificates for such shares be issued in the name of, and be delivered to,
___________, whose address is __________________________.

	
  

 	
  

 	
  

 	
  

 
	
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 (Signature)

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (Address)Exhibit 4.3 

THIS NOTE AND THE PAYMENTS HEREUNDER ARE SUBORDINATED TO

THE CLAIMS OF THE SENIOR DEBT (DEFINED BELOW) AND ARE

SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN

SUBORDINATION AGREEMENT (DEFINED BELOW)

6%
SECURED PROMISSORY NOTE

	
  

 	
  

 
	
 October __, 2007

 	
  

 
	
  

 	
 US$___

 
	
 _____

 	
  

 

WAVE2WAVE COMMUNICATIONS, INC.

          Wave2Wave
Communications, Inc., a Delaware corporation (together with its successors and
assigns, the “Buyer”), for
value received hereby promises to pay to the order of ________________ and its
permitted successors, heirs, transferees and assigns (the “Noteholder”), at its principal office
at ____________ or at such other place as may be designated from time to time
in writing by the Noteholder, the principal sum of _______________________ Dollars
(US$____________) together with interest on
unpaid balances from the date hereof until paid in full at a rate equal to 6%
per annum, computed on the basis of a 360-day year of twelve 30-day
months.

          This
6% Secured Promissory Note (this “Note”)
is one of the notes (the “Notes”)
referred to in Section 2.2(a)(iii) of that certain Amended and Restated Stock
Purchase Agreement, dated as of even date herewith, among the Buyer, RNK
Holding Company, a Massachusetts business trust (the “Trust”), RNK, Inc., and all of the
shareholders owning all of the issued and outstanding shares of beneficial
interests of the Trust and whose names and signatures appear under the caption
“Shareholders” on the signature pages thereof (the “Stock Purchase Agreement”). This Note
is subject and entitled to certain terms, conditions, covenants and agreements
contained in the Stock Purchase Agreement. Except as otherwise provided in the
Stock Purchase Agreement with respect to Buyer’s rights, if any, to set-off
payments against this Note, reference to the Stock Purchase Agreement shall in
no way impair the absolute and unconditional obligation of Buyer to pay the
outstanding principal balance and all accrued and unpaid interest thereon under
this Note as provided herein. This Note and
the other Notes shall rank equally without preference or priority of any kind
over one another and all payments with respect to any of such Notes shall be
applied ratably and proportionately on all Notes on the basis of the amount of
outstanding indebtedness
represented thereby (with respect to each such Noteholder, such proportion, the
“Allocable Noteholder Portion”).

          1.     Definitions.     The
following terms (except as otherwise expressly provided) for all purposes of
this Note shall have the respective meanings specified below. All accounting
terms used herein and not expressly defined shall have the meanings given to
them in accordance with GAAP. The terms defined in this Section 1 

include the plural as
well as the singular. All other capitalized terms shall have the meanings
assigned to them in the Stock Purchase Agreement.

                    “Acceleration Notice” shall have the
meaning set forth in Section 3.

                    “Allocable Noteholder Portion” shall
have the meaning set forth in the preamble.

                    “Balance” means the principal amount and
any other amounts outstanding under this Note from time to time, together with
all accrued and unpaid interest thereon as provided herein.

                    “Bankruptcy Law” means title 11, U.S.
Code or any similar federal or state law for the relief of debtors.

                    “Buyer” shall have the meaning set forth
in preamble.

                    “Collateral Agent” shall have the
meaning ascribed to such term in that certain Collateral Agency and
Intercreditor Agreement, of even date herewith, by and among the Trust and each
of the other Noteholders.

                    “Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.

                    “Default” means any Event of Default or
any condition, occurrence or event which, after notice or lapse of time or
both, would, unless cured or waived, constitute an Event of Default.

                    “Event of Default” shall have the
meaning set forth in Section 3(a).

                    “Excess Cash Flow” shall have the
meaning ascribed to such term in the Subordination Agreement.

                    “Note” shall have the meaning set forth
in preamble.

                    “Noteholder” shall have the meaning set
forth in preamble.

                    “Noteholders” means the holder or
holders of all of the Notes.

                    “Notice of Default” shall have the
meaning set forth in Section 3.

                    “Other Taxes” shall have the meaning set
forth in Section 2(f)(ii).

                    “Person” shall mean and include an
individual, a partnership, a corporation (including a business trust), a joint
stock company, a limited liability company, an unincorporated association, a
joint venture or other entity or a governmental authority.

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                    “Pledge Agreement” has the meaning set
forth in Section 6.

                    “Security Agreement” has the meaning set
forth in Section 6.

                    “Senior Debt” has the meaning as set
forth in the Subordination Agreement.

                    “Senior Loan Agreement” means that
certain Loan and Security Agreement between Greystone Business Credit II,
L.L.C. (“Lender”) and John Mennen Trust U/A/D November 25, 1970, and
Buyer of even date herewith. 

                    “Subordination Agreement” means that
certain Subordination Agreement among Lender, Noteholders and Buyer of even
date herewith.

                    “Transaction Documents” means (i) the
Stock Purchase Agreement, (ii) Transition Services Agreement, of even date
herewith, by and among the Buyer, the Trust, RNK, Inc. and the Shareholders,
(iii) the Notes, (iv) the Security Agreement, and (v) the Pledge Agreement.

                    “Stock Purchase Agreement” shall have
the meaning set forth in preamble.

                    “Taxes” shall have the meaning set forth
in Section 2(f)(i).

                    “Trust” shall have the meaning set forth
in the preamble.

          2.       Terms
of Payment.

                    (a)          Subject
to the terms of the Subordination Agreement, seven consecutive equal
quarterly installments of principal and interest, based upon a standard
two-year quarterly amortization schedule, in the aggregate amount of $4,096,613
shall be payable pro rata to all Noteholders based on each such Noteholder’s
Allocable Noteholder Portion on each of February 10, 2008, May 10, 2008, August
10, 2008, November 10, 2008, February 10, 2009, May 10, 2009 and August 10, 2009
with a final payment on October 11, 2009 (the “Final Maturity Date”); provided, however, that (i) no
interest above the amount of interest that would otherwise be imputed for such
period at the applicable Federal rate, shall be due, owing or payable for the
first six month period of this Note, if, prior to three months from the date
hereof, the Buyer prepays at least $8,000,000.00 (the “Prepayment”) of the principal amount of
the Notes, (ii) upon completion of the Prepayment, each remaining quarterly payment
shall be reduced such that the quarterly payment then due will be equal to a
fraction obtained by dividing the Balance then due and owing under the Note by
the number of quarterly payments remaining under the Note (calculated through
the Final Maturity Date) (for example, if the Prepayment occurs after the first
quarterly payment is made, then the second quarterly payment shall be equal to
1/7th of the then principal and interest then due and owing under
the Note), and (iii) any payments of Excess Cash Flow during an applicable
quarter shall reduce pro rata, dollar for dollar, the next due payment. 

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                    (b)          All
payments shall be applied first to accrued interest and the balance, if any, to
principal. For the convenience of the parties, attached hereto as Schedule A is
a sample amortization schedule for the aggregate amount of the Notes, assuming
no Prepayment and no payments of Excess Cash Flow are made. In the event the
Prepayment is made or any payments of Excess Cash Flow are made, the quarterly
installments shall automatically be adjusted as provided in paragraph (a) above
(the “Interim Adjusted Schedule”).
Within 15 days of such Prepayment or Excess Cash Flow payment, Buyer shall
deliver to the Collateral Agent a revised amortization schedule reflecting the
recalculation of the quarterly installments as provided in paragraph (a) above,
which shall supercede the Interim Adjusted Schedule and be binding on all
Noteholders as the final adjusted amortization schedule (the “Final Adjusted Schedule”), unless the
Collateral Agent objects to such revised amortization schedule. In such event,
Buyer and the Collateral Agent shall work together in good faith to resolve
such dispute. Until such dispute is resolved and a Final Adjusted Schedule is
agreed upon by Buyer and the Collateral Agent, payments under the Notes shall
continue to be made by the Buyer in good faith in accordance with Buyer’s good
faith understanding of the Interim Adjusted Schedule. 

                    (c)          If
any payment hereunder is not paid when due (and an Event of Default has
occurred), whether on a stated due date or upon demand, such overdue amount
shall thereafter bear interest until paid in full at a rate per annum equal to
12%, payable on demand.

                    (d)          Absolute Payment Obligation. Except as
otherwise provided in the Stock Purchase Agreement with respect to Buyer’s
rights, if any, to set-off payments against this Note, no provision of this
Note shall alter or impair the obligations of the Buyer, which are absolute and
unconditional, to pay the principal of and interest on this Note at the place,
times and rate, and in the currency or other form, herein prescribed.

                    (e)          Prepayment. The Buyer may prepay all or
a portion of the Balance at any time and from time to time without penalty,
together with interest accrued on the amount prepaid through the date of
prepayment upon two (2) days’ prior written notice to Collateral Agent and the
Noteholder; provided, however, that, without the prior written consent of the
Noteholder, the Buyer may not prepay any portion of the Balance during any
applicable Notice Period.

                    (f)          Payment in Full.

                    (i)          Except
for the setoff rights set forth in Section 8.2 of the Stock Purchase Agreement
(with respect to indemnification), and as otherwise provided herein, any and
all payments by the Buyer to the Noteholder under this Note shall be made
without setoff or counterclaim free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto (all such taxes, levies
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”)
except to the extent the Buyer is required by law to make such deduction or
withholding. 

4

                    (ii)          In
addition, except as provided in Section 2(f)(iii) hereof, the Buyer shall pay
any present or future stamp, documentary, excise, property or similar taxes,
charges or levies that arise from any payment made under this Note or from the
execution, delivery or registration of, or otherwise with respect to, this
Note, including any taxes and fees in connection with the filing and recording
of financing statements, continuation statements and other similar notices (all
such taxes, charges and levies being hereinafter referred to as “Other Taxes”).

                    (iii)          The
Buyer shall indemnify the Noteholder for the full amount of Taxes and Other
Taxes, and for the full amount of taxes imposed by any jurisdiction on amounts
payable under this Section 2(f) paid by the Noteholder and any liability
(including, without limitation, penalties, additions to tax, interest and
expenses) arising therefrom or with respect thereto; provided, however,
that the Buyer shall not be obligated to pay or indemnify the Noteholder
against Taxes or Other Taxes on, based on, or measured by, the receipts, gross
or net income, capital, net worth, franchises, excess profits, capital gains,
minimum taxes, or conduct of business of the Noteholder or other similar taxes
imposed by any jurisdiction. This indemnification payment shall be made within
thirty (30) days from the date the Noteholder makes written demand therefor; provided,
that, if requested by the Buyer, the Noteholder (upon receipt of indemnity or
security reasonably satisfactory to it and at the expense of the Buyer) shall
in good faith contest, in its name or (if so requested) in the name of the
Buyer (or permit the Buyer to so contest in the name of the Buyer), if
permitted under applicable laws, the validity, applicability, or amount of any
Taxes or Other Taxes for which the Noteholder has made a claim hereunder by (x)
resisting payment thereof if practicable, (z) not paying the same except under
protest, if protest shall be necessary and proper and (y) if payment shall be
made, using reasonable efforts to obtain a refund thereof in appropriate
administrative and judicial proceedings. The Noteholder shall (in good faith
consultation with the Buyer) determine the method of any contest and the
control and conduct thereof. Any refund of Taxes or Other Taxes for which the
Buyer have paid the Noteholder an indemnity hereunder shall be paid to the
Buyer. 

                    (g)          Excess Cash Flow. In addition to the
quarterly installments pursuant to Section 2(a), and subject to the proviso of
Section 2(e) and the terms and provisions of the Subordination Agreement, if
following the end of a quarter, this Note is still outstanding, then within 30
days following the end of such quarter, the Buyer shall cause RNK, Inc. to make
payments to the Noteholder of his or its Allocable Noteholder Portion of any
Excess Cash Flow. 

          3.       Events of Default and Remedies.

                    (a)          Event of Default Defined; Acceleration of Maturity;
Waiver of Default. In case one or more of the following events
(“Events of Default”) (whatever
the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall have occurred and be continuing:

5

                    (i)          default
in the payment of all or any part of the Balance of this Note as and when the
Balance or such part thereof shall become due and payable; provided, however,
that such failure shall not result in an Event of Default to the extent it is
has not occurred more than once during the term of this Note and it is
corrected by Buyer within a period of 15 business days; or

                    (ii)          failure
on the part of the Buyer or RNK, Inc. duly to observe or perform in all
material respects any of the covenants or agreements on the part of either the
Buyer or RNK, Inc. contained in the Transaction Documents (other than those
covered by clause (i) above) for a period of 15 business days after the date on
which written notice specifying such failure, stating that such notice is a “Notice
of Default” hereunder and demanding that Buyer or RNK, Inc., as the case
may be, remedy the same, shall have been given by the Noteholder by registered
or certified mail, return receipt requested, to the Buyer or RNK, Inc., as the
case may be; or 

                    (iii)          the
occurrence of any event or condition which results in (i) the acceleration of
the maturity of any material indebtedness of the Buyer or RNK, Inc. (any
indebtedness in excess of $500,000 shall be deemed material) or, (ii) enables
or, with the giving of notice or lapse of time or both, would enable the holder
of any such monetary obligation or any Person acting on such holder’s behalf to
accelerate the maturity thereof; or

                    (iv)          any
representation, warranty or statement of fact made by Buyer in any of the
Transaction Documents or any other agreement, schedule or otherwise in
connection with the transactions contemplated thereby being, when made or
deemed to have been made, false or misleading in any material respect; provided,
however, that such failure shall not result in an Event of Default to
the extent it is corrected by Buyer within a period of 15 business days (5
business days if such failure causes an Adverse Effect (as defined in the Stock
Purchase Agreement and applied to this Note, mutatis mutandis) after the
date on which written notice specifying such failure, stating that such notice
is a “Notice of Default” hereunder and demanding that Buyer remedy same,
shall have been given by the Noteholder by registered or certified mail, return
receipt requested,

                    (v)          any
of the following actions by the Buyer or RNK, Inc. pursuant to or within the
meaning of any Bankruptcy Law: (A) commencement of a voluntary case or
proceeding, (B) consent to the entry of an order for relief against it in an
involuntary case or proceeding, (C) consents to the appointment of a Custodian
of it or for all or substantially all of its property, (D) a general assignment
for the benefit of its creditors, or (E) admission in writing its inability to
pay its debts as the same become due; or

                    (vi)          entry
by a court of competent jurisdiction of an order or decree under any Bankruptcy
Law that: (A) is for relief against the Buyer or RNK, Inc. in an involuntary
case, (B) appoints a Custodian of the Buyer or RNK, Inc. or for all or
substantially all of the property of the Buyer or RNK, Inc., as the case may
be, or (C) orders the liquidation of the Buyer or RNK, Inc., and such order or
decree remains unstayed and in effect for 90 days;

6

then, in each case where
an Event of Default specified in Sections 3(a)(i), 3(a)(ii), 3(a)(iii) or
3(a)(iv) occurs, the Collateral Agent, by notice in writing to the Buyer (the “Acceleration Notice”), may declare the
Balance (in whole or in part) to be due and payable immediately, and upon any
such declaration the same shall become immediately due and payable; provided
that if an Event of Default specified in Section 3(a)(v) or 3(a)(vi) occurs,
the Balance shall become and be immediately due and payable without any
declaration or other act on the part of the Noteholder or the Collateral Agent.

                       (b)     Payment of Costs. The Buyer shall
reimburse the Noteholder, on demand, for any and all reasonable costs and
expenses, including reasonable attorneys’ fees and disbursement and court costs
(through all appeals), incurred by the Noteholder in collecting or otherwise
enforcing this Note or in attempting to collect or enforce this Note.

                       (c)     Notice by Buyer. Upon an Event of
Default, the Buyer shall give the Noteholder immediate written notice thereof.

          4.          Powers and Remedies Cumulative; Delay or Omission Not
Waiver of Default. No right or remedy herein conferred upon or
reserved to the Noteholder is intended to be exclusive of any other right or
remedy available to Noteholder under applicable law, and every such right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy. No delay or omission of
the Noteholder to exercise any right or power accruing upon any Default
occurring and continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Default or an acquiescence
therein; and every power and remedy given by this Note or by law may be
exercised from time to time, and as often as shall be deemed expedient, by the
Noteholder.

          5.          Waiver of Past Defaults. The Noteholder
may waive any past Default hereunder and its consequences but no such waiver
shall extend to any subsequent or other Default or impair any right consequent
thereon.

          6.          Security;
Subordination. This Note is the “Note” referred to in the
Stock Purchase Agreement, the Security Agreement (the “Security Agreement”) and the Pledge
Agreement (the “Pledge Agreement”),
each entered into by and among the Buyer, RNK, Inc. and the Noteholders and is
entitled to all of the rights and benefits referred to therein. The obligations
of the Buyer evidenced by this Note, and the rights of the Noteholder to
receive the payments herein described, are expressly junior and subordinate to
the prior payment of all Senior Debt of the Buyer and are governed by that
certain Subordination Agreement, of even date herewith, by and among the Buyer,
the Noteholders and the holder of the Senior Debt.

          7.          Wind-up
Rights. Subject to the subordination provisions of this Note and
the terms of the Subordination Agrement, in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Buyer, this Note
shall be entitled to a claim

7

in liquidation before
participation by any holder of any capital stock of the Buyer. The amount of
the claim in liquidation shall equal the amount to which the Noteholder would
be entitled in the case of payment, whether or not this Note is eligible for payment
at the time of liquidation. 

          8.          Successors.
The Buyer shall not assign any of their obligations under this Note or the
Stock Purchase Agreement except as otherwise permitted under the terms of this
Note and the Stock Purchase Agreement. 

          9.          Assignment
of Note. The Noteholder may not assign, transfer, sell or otherwise
dispose of its right, title or interest in this Note without the prior written
consent of Buyer, such consent not to be unreasonably withheld or delayed. Any
such consent shall include an agreement that any assignee, transferee or
purchaser shall agree in writing to become the Noteholder hereunder and to be
bound by all of the terms and conditions contained in the Transaction Documents
applicable to a “Noteholder,” as such and to be bound by the Subordination
Agreement and to enter into documentation to give effect thereto.  

          10.          Replacement
Notes. After delivery of an affidavit and usual and customary
indemnification provisions in the case of a lost, stolen, or destroyed Note, in
each case, in form and substance reasonably satisfactory to the Buyer, the
Buyer agree to issue a replacement note if this Note has been lost, stolen,
mutilated or destroyed. 

          11.          Modification
of Note. No amendment of any provision of this Note shall be
valid unless the same shall be in writing and signed by Buyer and the
Collateral Agent; provided, however, that notwithstanding the foregoing (i) no
such amendment shall be effective without the written consent of all
Noteholders to the extent such amendment adversely affects the rights or
obligations of any Noteholder or group of Noteholders hereunder unless such
amendment applies, and is enforced against, all Noteholders in a fair, equitable
and equal manner. 

          12.          No
Action. Until the payment in full of the Notes, no Co-Maker
shall exercise any right or remedy against such other Co-Maker or any property
of such other Co-Maker by reason of any performance of such Co-Maker of its
joint and several obligations hereunder. 

          13.          Miscellaneous.
This Note shall be governed by and construed according to the laws of the
Commonwealth of Massachusetts, without regard to principles of conflicts of
laws and rules of such state. The Buyer hereby waive presentment, demand,
notice, protest and all other demands and notices in connection with the
delivery, acceptance, performance and enforcement of this Note, except as
specifically provided herein, and assent to extensions of the time of payment,
or forbearance or other indulgence without notice. The Section headings herein
are for convenience only and shall not affect the construction hereof. 

8

          IN
WITNESS WHEREOF, Buyer has caused this instrument to be duly
executed under seal as of the date first set forth above.

	
  

 	
  

 	
  

 
	
  

 	
 WAVE2WAVE COMMUNICATIONS, INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

 9

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