Document:

<PAGE>   1
                                                                    EXHIBIT 10.8

             ASSIGNMENT AND TRANSFER OF PREFERRED STOCK AND WARRANTS

This Assignment and Transfer of Preferred Stock and Warrants (this "Assignment")
is entered into as of the 22nd day of March, 2000, by and among HMEU Viatel I-EQ
Coinvestors, LLC ("EQ "), a Delaware limited liability company, HMEU Viatel
I-SBS Coinvestors, LLC ("SBS"), a Delaware limited liability company, HM Viatel
PG Europe, LLC ("PG"), a Delaware limited liability company, HMEU Viatel
Qualified Fund, LLC ("Qualified"), a Delaware limited liability company and HMEU
Viatel Private Fund, LLC ("Private"), a Delaware limited liability company.

                                    RECITALS

A. The parties to this Assignment severally own shares of 7.50% Cumulative
Convertible Preferred Stock, Series B-1, par value $0.01 per share in Viatel,
Inc. ("Company") ("Preferred Stock"), five year warrants to purchase shares of
the Company's common stock par value $0.01 per share ("Common Stock") at a
purchase price of $75.00 per share ("A-1 Warrants") and five year warrants to
purchase shares of the Company's Common Stock at a purchase price of $100.00 per
share ("B-1 Warrants") (the A-1 Warrants and B-1 Warrants collectively, the
"Warrants").

B. EQ and PG wish to severally assign and transfer, and SBS, Qualified and
Private wish to severally acquire, an aggregate of 2,385 shares of Preferred
Stock, 5,525 A-1 Warrants and 5,525 B-1 Warrants as set forth in this
Assignment.

                                   AGREEMENTS

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending
to be legally bound, hereby agree as follows:

1. ASSIGNMENT. (a) EQ hereby assigns and transfers 369 shares of Preferred Stock
and 855 A-1 Warrants and 855 B-1 Warrants; and

                  (b) PG hereby assigns and transfers 2016 shares of Preferred
Stock and 4,670 A-1 Warrants and 4,670 B-1 Warrants to SBS, Qualified and
Private such that, after giving effect to such assignment and transfer, each
party hereto shall own the number of shares of Preferred Stock and Warrants
opposite such party's name as set forth on Exhibit A hereto.

2. FURTHER ASSURANCES. Each party covenants and agrees that it will do, execute,
acknowledge and deliver, or will cause to be done, executed, acknowledged and
delivered, all such further acts, conveyances, transfers, assignments, powers of
attorney and assurances as may be required to better assure, convey, transfer,
confirm and vest unto SBS, Qualified and Private the Preferred Stock and

<PAGE>   2

Warrants assigned and transferred pursuant to this Assignment and to aid and
assist SBS, Qualified and Private in collecting and reducing the same to
possession.

3. GOVERNING LAW. THIS ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

              [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]

                                        2

<PAGE>   3

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be signed, all
as of the date first written above.

                                    HMEU VIATEL I-EQ COINVESTORS, LLC

                                    By:    /s/ DAVID W. KNICKEL
                                       -----------------------------------------
                                    Name:  David W. Knickel
                                    Title: Vice President

                                    HMEU VIATEL I-SBS COINVESTORS, LLC

                                    By:    /s/ DAVID W. KNICKEL
                                       -----------------------------------------
                                    Name:  David W. Knickel
                                    Title: Vice President

                                    HM VIATEL PG EUROPE, LLC

                                    By:    /s/ DAVID W. KNICKEL
                                       -----------------------------------------
                                    Name:  David W. Knickel
                                    Title: Vice President

                                    HMEU VIATEL QUALIFIED FUND, LLC

                                    By:    /s/ DAVID W. KNICKEL
                                       -----------------------------------------
                                    Name:  David W. Knickel
                                    Title: Vice President

                                    HMEU VIATEL PRIVATE FUND, LLC

                                    By:    /s/ DAVID W. KNICKEL
                                       -----------------------------------------
                                    Name:  David W. Knickel
                                    Title: Vice President

                                       S-1

<PAGE>   4

                                         EXHIBIT A

<TABLE>
<CAPTION>
                                              SHARES OF
                                              PREFERRED             A-1                B-1
          ASSIGNEE                              STOCK             WARRANTS           WARRANTS
          --------                            ---------           --------           --------
<S>                                           <C>                 <C>                <C>
HMEU Viatel I-EQ Coinvestors, LLC                  928              2,150              2,150
HMEU Viatel I-SBS Coinvestors, LLC               1,871              4,336              4,336
HM Viatel PG Europe, LLC                         5,338             12,370             12,370
HMEU Viatel Qualified Fund, LLC                 72,249            167,421            167,421
HMEU Viatel Private Fund, LLC                      864              2,002              2,002
                                                ------            -------            -------
Total                                           81,250            188,279            188,279
                                                ======            =======            =======
</TABLE><PAGE>   1
                                                                   EXHIBIT 10.8

THIS DEMAND NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH
CONDITIONS SPECIFIED HEREIN.

                             HMTF BRIDGE RHY, LLC

                                  Demand Note

                                                                  Dallas, Texas

         FOR VALUE RECEIVED, the undersigned (the "Company") , a limited
liability company organized and existing under the laws of the State of
Delaware, hereby promises to pay to the order of HM4 Rhythms Qualified Fund,
LLC, or registered assigns, the principal sum of one hundred and nineteen
million, three hundred and ninety six thousand, five hundred and sixty two
Dollars ($119,396,562.00) not later than three business days after written
demand for payment is delivered by the holder hereof to the Company at its
principal office (which is located at 200 Crescent Court, Suite 1600, Dallas,
Texas, on the date of this Note) , with simple interest at a rate of 8.25% per
annum. Interest will be paid at the time of payment of the related principal or
at the time this Note is otherwise surrendered by the holder hereof for
cancellation.

         Payments of principal and interest accrued on the principal being paid
to the date of payment are to be made at the home office of the Company, or
such other place as the holder of this Note shall have specified in writing to
the Company, in lawful money of the United States of America.

         This Note and the other Demand Notes being issued and dated the date
hereof are herein called the "Notes."

         The Company represents and warrants that:

         (i) it is a limited liability company duly organized, validly existing
and in good standing under the laws of the State of Delaware and has all power
and authority to own and lease its property and to conduct its business as
presently conducted or contemplated; the Company is duly qualified to transact
business as a foreign corporation in each jurisdiction in which the conduct of
its business as presently conducted or its ownership or leasing of property
makes such qualification necessary;

         (ii) the execution and delivery by the Company of the Notes have been
duly authorized by all the necessary corporate action and the Notes constitute
the valid and binding agreements of the Company enforceable in accordance with
their terms except to the extent that enforcement may be limited by applicable
bankruptcy, insolvency, moratorium or other similar laws of general application
relating to or affecting the enforcement of creditors' rights generally from
time to time in effect; and

         (iii) the execution and delivery of the Notes does not and will not
contravene, or constitute a default under, any law or regulation, the limited
liability company agreement of the Company or any agreement, judgement,
injunction, order, decree or instrument binding upon the Company, or result in
the creation or imposition of any lien, claim or encumbrance on any asset of
the Company.

<PAGE>   2

                  If any of the following events shall occur:

                  (i) any representation or warranty made by the Company in this
         Note shall be false in any material respect on the date as of which
         made or the Company shall violate any covenant or agreement made by it
         in this Note;

                  (ii) the Company shall make an assignment for the benefit of
         creditors or admit in writing its inability to pay off its debts as
         they become due;

                  (iii) an order, judgement or decree shall be entered
         adjudicating the Company bankrupt or insolvent;

                  (iv) the Company shall petition or apply to any tribunal for
         the appointment of a trustee, receiver or liquidator of the Company or
         of any substantial part of its assets, or commence any proceedings
         relating to the Company under and bankruptcy, reorganization
         arrangement, insolvency, readjustment of debt, dissolution or
         liquidation law of any jurisdiction, whether now or hereafter in
         effect;

                  (v) any such petition or application shall be filed, or any
         such proceeding shall be commenced, against the Company and the Company
         by any act shall indicate its approval thereof, consent thereto or
         acquiescence therein, or any order, judgement or decree shall be
         entered appointing any such trustee, receiver or liquidator, or
         approving the petition in any such proceedings, and any such order,
         judgement or decree shall remain unstayed and in effect for more than
         60 days; or

                  (vi) any order, judgement or decree shall be entered in any
         proceeding against the Company decreeing the dissolution of the
         Company;

then, notwithstanding any provision herein to the contrary, this Note shall
thereupon be and become forthwith due and payable without demand or other
notice of any kind by the holder hereof or any other person.

         The Company promises to pay the following costs, expenses and
attorneys' fees paid or incurred by the holder of this Note, or adjudged by the
court:

                  (a) reasonable costs of collection, costs and expenses and
         attorneys' fees paid or incurred in connection with the collection or
         enforcement of this Note, whether or not suit is filed; and

                  (b) costs of suit and such sums as the court may adjudge as
         attorneys' fees in any action to enforce payment of this Note or any
         part of it.

         Upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or his attorney duly authorized in writing, and
upon satisfaction of the Company that such transfer is exempt from registration
under the Securities Act of 1933, a new note for a like principal amount will
be issued to, and registered in the name of, the transferee. The Company may
treat the person in whose name this Note is registered as the owner hereof for
the purpose of receiving payment and for all other purposes, and the Company
shall not be affected by any notice to the contrary.

<PAGE>   3

         No alteration, amendment or waiver of any provision of this Note, made
by agreement of the holder hereof and any other person or party, shall
constitute a waiver of any term hereof, or otherwise release or discharge the
liability of the Company under this Note.

         This Note may not be modified, terminated or discharged nor shall any
waiver hereunder be effective unless in writing signed by the party against
whom the same is asserted.

         The provisions of this Note shall be construed and interpreted, and in
all rights and obligations hereunder determined, in accordance with the laws of
the State of New York.

                                                         HMTF BRIDGE RHY, LLC

                                               By:  /s/ DAVID W. KNICKEL
                                                  -----------------------------
                                              Name:     David W. Knickel
                                                    ---------------------------
                                              Title:    Vice President
                                                     --------------------------
<PAGE>   4
THIS DEMAND NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH
CONDITIONS SPECIFIED HEREIN.

                              HMTF BRIDGE RHY, LLC

                                  Demand Note

                                                                   Dallas, Texas

                  FOR VALUE RECEIVED, the undersigned (the "Company"), a
limited liability company organized and existing under the laws of the State of
Delaware, hereby promises to pay to the order of HM4 Rhythms Private Fund, LLC,
or registered assigns, the principal sum of eight hundred and forty five
thousand, eight hundred and forty eight Dollars ($845,848.00) not later than
three business days after written demand for payment is delivered by the holder
hereof to the Company at its principal office (which is located at 200 Crescent
Court, Suite 1600, Dallas, Texas, on the date of this Note), with simple
interest at a rate of 8.25% per annum. Interest will be paid at the time of
payment of the related principal or at the time this Note is otherwise
surrendered by the holder hereof for cancellation.

                  Payments of principal and interest accrued on the principal
being paid to the date of payment are to be made at the home office of the
Company, or such other place as the holder of this Note shall have specified in
writing to the Company, in lawful money of the United States of America.

                  This Note and the other Demand Notes being issued and dated
the date hereof are herein called the "Notes."

The Company represents and warrants that:

                  (i) it is a limited liability company duly organized, validly
         existing and in good standing under the laws of the State of Delaware
         and has all power and authority to own and lease its property and to
         conduct its business as presently conducted or contemplated; the
         Company is duly qualified to transact business as a foreign corporation
         in each jurisdiction in which the conduct of its business as presently
         conducted or its ownership or leasing of property makes such
         qualification necessary;

                  (ii) the execution and delivery by the Company of the Notes
         have been duly authorized by all the necessary corporate action and the
         Notes constitute the valid and binding agreements of the Company
         enforceable in accordance with their terms except to the extent that
         enforcement may be limited by applicable bankruptcy, insolvency,
         moratorium or other similar laws of general application relating to or
         affecting the enforcement of creditors' rights generally from time to
         time in effect; and

                  (iii) the execution and delivery of the Notes does not and
         will not contravene, or constitute a default under, any law or
         regulation, the limited liability company agreement of the Company or
         any agreement, judgement, injunction, order, decree or instrument
         binding upon the Company, or result in the creation or imposition of
         any lien, claim or encumbrance on any asset of the Company.

                  If any of the following events shall occur:

<PAGE>   5

                  (i) any representation or warranty made by the Company in this
         Note shall be false in any material respect on the date as of which
         made or the Company shall violate any covenant or agreement made by it
         in this Note;

                  (ii) the Company shall make an assignment for the benefit of
         creditors or admit in writing its inability to pay off its debts as
         they become due;

                  (iii) an order, judgement or decree shall be entered
         adjudicating the Company bankrupt or insolvent;

                  (iv) the Company shall petition or apply to any tribunal for
         the appointment of a trustee, receiver or liquidator of the Company or
         of any substantial part of its assets, or commence any proceedings
         relating to the Company under and bankruptcy, reorganization
         arrangement, insolvency, readjustment of debt, dissolution or
         liquidation law of any jurisdiction, whether now or hereafter in
         effect;

                  (v) any such petition or application shall be filed, or any
         such proceeding shall be commenced, against the Company and the Company
         by any act shall indicate its approval thereof, consent thereto or
         acquiescence therein, or any order, judgement or decree shall be
         entered appointing any such trustee, receiver or liquidator, or
         approving the petition in any such proceedings, and any such order,
         judgement or decree shall remain unstayed and in effect for more than
         60 days; or

                  (vi) any order, judgement or decree shall be entered in any
         proceeding against the Company decreeing the dissolution of the
         Company;

then, notwithstanding any provision herein to the contrary, this Note shall
thereupon be and become forthwith due and payable without demand or other notice
of any kind by the holder hereof or any other person.

                  The Company promises to pay the following costs, expenses and
attorneys' fees paid or incurred by the holder of this Note, or adjudged by the
court:

                  (a) reasonable costs of collection, costs and expenses and
         attorneys' fees paid or incurred in connection with the collection or
         enforcement of this Note, whether or not suit is filed; and

                  (b) costs of suit and such sums as the court may adjudge as
         attorneys' fees in any action to enforce payment of this Note or any
         part of it.

                  Upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or his attorney duly authorized in writing, and
upon satisfaction of the Company that such transfer is exempt from registration
under the Securities Act of 1933, a new note for a like principal amount will be
issued to, and registered in the name of, the transferee. The Company may treat
the person in whose name this Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company shall
not be affected by any notice to the contrary.

                  No alteration, amendment or waiver of any provision of this
Note, made by agreement of the holder hereof and any other person or party,
shall

<PAGE>   6

constitute a waiver of any term hereof, or otherwise release or discharge the
liability of the Company under this Note.

                  This Note may not be modified, terminated or discharged nor
shall any waiver hereunder be effective unless in writing signed by the party
against whom the same is asserted.

                  The provisions of this Note shall be construed and
interpreted, and in all rights and obligations hereunder determined, in
accordance with the laws of the State of New York.

                                               HMTF BRIDGE RHY, LLC

                                     By:  /s/ DAVID W. KNICKEL
                                        ------------------------------
                                    Name:     David W. Knickel
                                          ---------------------------
                                    Title:    Vice President
                                           --------------------------

<PAGE>   7
THIS DEMAND NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH
CONDITIONS SPECIFIED HEREIN.

                             HMTF BRIDGE RHY, LLC

                                  Demand Note

                                                                  Dallas, Texas

         FOR VALUE RECEIVED, the undersigned (the "Company") , a limited
liability company organized and existing under the laws of the State of
Delaware, hereby promises to pay to the order of HM PG-IV Rhythms, LLC, or
registered assigns, the principal sum of six million, three hundred and fifty
six thousand, four hundred and eighty six Dollars ($6,356,486.00) not later
than three business days after written demand for payment is delivered by the
holder hereof to the Company at its principal office (which is located at 200
Crescent Court, Suite 1600, Dallas, Texas, on the date of this Note) , with
simple interest at a rate of 8.25% per annum. Interest will be paid at the time
of payment of the related principal or at the time this Note is otherwise
surrendered by the holder hereof for cancellation.

         Payments of principal and interest accrued on the principal being paid
to the date of payment are to be made at the home office of the Company, or
such other place as the holder of this Note shall have specified in writing to
the Company, in lawful money of the United States of America.

         This Note and the other Demand Notes being issued and dated the date
hereof are herein called the "Notes."

         The Company represents and warrants that:

         (i) it is a limited liability company duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     has all power and authority to own and lease its property and to conduct
     its business as presently conducted or contemplated; the Company is duly
     qualified to transact business as a foreign corporation in each
     jurisdiction in which the conduct of its business as presently conducted
     or its ownership or leasing of property makes such qualification
     necessary;

         (ii) the execution and delivery by the Company of the Notes have been
     duly authorized by all the necessary corporate action and the Notes
     constitute the valid and binding agreements of the Company enforceable in
     accordance with their terms except to the extent that enforcement may be
     limited by applicable bankruptcy, insolvency, moratorium or other similar
     laws of general application relating to or affecting the enforcement of
     creditors' rights generally from time to time in effect; and

         (iii) the execution and delivery of the Notes does not and will not
     contravene, or constitute a default under, any law or regulation, the
     limited liability company agreement of the Company or any agreement,
     judgement, injunction, order, decree or instrument binding upon the
     Company, or result in the creation or imposition of any lien, claim or
     encumbrance on any asset of the Company.

         If any of the following events shall occur:
<PAGE>   8

         (i) any representation or warranty made by the Company in this Note
     shall be false in any material respect on the date as of which made or the
     Company shall violate any covenant or agreement made by it in this Note;

         (ii) the Company shall make an assignment for the benefit of
     creditors or admit in writing its inability to pay off its debts as they
     become due;

         (iii) an order, judgement or decree shall be entered adjudicating the
     Company bankrupt or insolvent;

         (iv) the Company shall petition or apply to any tribunal for the
     appointment of a trustee, receiver or liquidator of the Company or of any
     substantial part of its assets, or commence any proceedings relating to
     the Company under and bankruptcy, reorganization arrangement, insolvency,
     readjustment of debt, dissolution or liquidation law of any jurisdiction,
     whether now or hereafter in effect;

         (v) any such petition or application shall be filed, or any such
     proceeding shall be commenced, against the Company and the Company by any
     act shall indicate its approval thereof, consent thereto or acquiescence
     therein, or any order, judgement or decree shall be entered appointing any
     such trustee, receiver or liquidator, or approving the petition in any
     such proceedings, and any such order, judgement or decree shall remain
     unstayed and in effect for more than 60 days; or

         (vi) any order, judgement or decree shall be entered in any
     proceeding against the Company decreeing the dissolution of the Company;

then, notwithstanding any provision herein to the contrary, this Note shall
thereupon be and become forthwith due and payable without demand or other
notice of any kind by the holder hereof or any other person.

         The Company promises to pay the following costs, expenses and
attorneys' fees paid or incurred by the holder of this Note, or adjudged by the
court:

         (a) reasonable costs of collection, costs and expenses and attorneys'
     fees paid or incurred in connection with the collection or enforcement of
     this Note, whether or not suit is filed; and

         (b) costs of suit and such sums as the court may adjudge as
     attorneys' fees in any action to enforce payment of this Note or any part
     of it.

         Upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or his attorney duly authorized in writing, and
upon satisfaction of the Company that such transfer is exempt from registration
under the Securities Act of 1933, a new note for a like principal amount will
be issued to, and registered in the name of, the transferee. The Company may
treat the person in whose name this Note is registered as the owner hereof for
the purpose of receiving payment and for all other purposes, and the Company
shall not be affected by any notice to the contrary.

         No alteration, amendment or waiver of any provision of this Note, made
by agreement of the holder hereof and any other person or party, shall

<PAGE>   9

constitute a waiver of any term hereof, or otherwise release or discharge the
liability of the Company under this Note.

         This Note may not be modified, terminated or discharged nor shall any
waiver hereunder be effective unless in writing signed by the party against
whom the same is asserted.

         The provisions of this Note shall be construed and interpreted, and in
all rights and obligations hereunder determined, in accordance with the laws of
the State of New York.

                                                        HMTF BRIDGE RHY, LLC

                                               By:  /s/ DAVID W. KNICKEL
                                                  ------------------------------
                                              Name:     David W. Knickel
                                                    ---------------------------
                                              Title:    Vice President
                                                     --------------------------
<PAGE>   10
THIS DEMAND NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH
CONDITIONS SPECIFIED HEREIN.

                              HMTF BRIDGE RHY, LLC

                                  Demand Note

                                                                  Dallas, Texas

         FOR VALUE RECEIVED, the undersigned (the "Company") , a limited
liability company organized and existing under the laws of the State of
Delaware, hereby promises to pay to the order of HM 4-SBS Rhythms Coinvestors,
LLC, or registered assigns, the principal sum of two million, eight hundred and
fifty nine thousand, one hundred and seventy eight Dollars ($2,859,178.00) not
later than three business days after written demand for payment is delivered by
the holder hereof to the Company at its principal office (which is located at
200 Crescent Court, Suite 1600, Dallas, Texas, on the date of this Note) , with
simple interest at a rate of 8.25% per annum. Interest will be paid at the time
of payment of the related principal or at the time this Note is otherwise
surrendered by the holder hereof for cancellation.

         Payments of principal and interest accrued on the principal being paid
to the date of payment are to be made at the home office of the Company, or
such other place as the holder of this Note shall have specified in writing to
the Company, in lawful money of the United States of America.

         This Note and the other Demand Notes being issued and dated the date
hereof are herein called the "Notes."

         The Company represents and warrants that:

         (i) it is a limited liability company duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     has all power and authority to own and lease its property and to conduct
     its business as presently conducted or contemplated; the Company is duly
     qualified to transact business as a foreign corporation in each
     jurisdiction in which the conduct of its business as presently conducted
     or its ownership or leasing of property makes such qualification
     necessary;

         (ii) the execution and delivery by the Company of the Notes have been
     duly authorized by all the necessary corporate action and the Notes
     constitute the valid and binding agreements of the Company enforceable in
     accordance with their terms except to the extent that enforcement may be
     limited by applicable bankruptcy, insolvency, moratorium or other similar
     laws of general application relating to or affecting the enforcement of
     creditors' rights generally from time to time in effect; and

         (iii) the execution and delivery of the Notes does not and will not
     contravene, or constitute a default under, any law or regulation, the
     limited liability company agreement of the Company or any agreement,
     judgement, injunction, order, decree or instrument binding upon the
     Company, or result in the creation or imposition of any lien, claim or
     encumbrance on any asset of the Company.

<PAGE>   11

         If any of the following events shall occur:

         (i) any representation or warranty made by the Company in this Note
     shall be false in any material respect on the date as of which made or the
     Company shall violate any covenant or agreement made by it in this Note;

         (ii) the Company shall make an assignment for the benefit of
     creditors or admit in writing its inability to pay off its debts as they
     become due;

         (iii) an order, judgement or decree shall be entered adjudicating the
     Company bankrupt or insolvent;

         (iv) the Company shall petition or apply to any tribunal for the
     appointment of a trustee, receiver or liquidator of the Company or of any
     substantial part of its assets, or commence any proceedings relating to
     the Company under and bankruptcy, reorganization arrangement, insolvency,
     readjustment of debt, dissolution or liquidation law of any jurisdiction,
     whether now or hereafter in effect;

         (v) any such petition or application shall be filed, or any such
     proceeding shall be commenced, against the Company and the Company by any
     act shall indicate its approval thereof, consent thereto or acquiescence
     therein, or any order, judgement or decree shall be entered appointing any
     such trustee, receiver or liquidator, or approving the petition in any
     such proceedings, and any such order, judgement or decree shall remain
     unstayed and in effect for more than 60 days; or

         (vi) any order, judgement or decree shall be entered in any
     proceeding against the Company decreeing the dissolution of the Company;

then, notwithstanding any provision herein to the contrary, this Note shall
thereupon be and become forthwith due and payable without demand or other
notice of any kind by the holder hereof or any other person.

         The Company promises to pay the following costs, expenses and
attorneys' fees paid or incurred by the holder of this Note, or adjudged by the
court:

         (a) reasonable costs of collection, costs and expenses and attorneys'
     fees paid or incurred in connection with the collection or enforcement of
     this Note, whether or not suit is filed; and

         (b) costs of suit and such sums as the court may adjudge as
     attorneys' fees in any action to enforce payment of this Note or any part
     of it.

         Upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or his attorney duly authorized in writing, and
upon satisfaction of the Company that such transfer is exempt from registration
under the Securities Act of 1933, a new note for a like principal amount will
be issued to, and registered in the name of, the transferee. The Company may
treat the person in whose name this Note is registered as the owner hereof for
the purpose of receiving payment and for all other purposes, and the Company
shall not be affected by any notice to the contrary.

<PAGE>   12

         No alteration, amendment or waiver of any provision of this Note, made
by agreement of the holder hereof and any other person or party, shall
constitute a waiver of any term hereof, or otherwise release or discharge the
liability of the Company under this Note.

         This Note may not be modified, terminated or discharged nor shall any
waiver hereunder be effective unless in writing signed by the party against
whom the same is asserted.

         The provisions of this Note shall be construed and interpreted, and in
all rights and obligations hereunder determined, in accordance with the laws of
the State of New York.

                                                         HMTF BRIDGE RHY, LLC

                                               By:  /s/ DAVID W. KNICKEL
                                                  ------------------------------
                                              Name:     David W. Knickel
                                                    ---------------------------
                                              Title:    Vice President
                                                     --------------------------
<PAGE>   13
THIS DEMAND NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH
CONDITIONS SPECIFIED HEREIN.

                             HMTF BRIDGE RHY, LLC

                                  Demand Note

                                                                  Dallas, Texas

         FOR VALUE RECEIVED, the undersigned (the "Company") , a limited
liability company organized and existing under the laws of the State of
Delaware, hereby promises to pay to the order of HM 4-EQ Rhythms Coinvestors,
LLC, or registered assigns, the principal sum of one million, seven hundred and
fifty four thousand, four hundred and forty one Dollars ($1,754,441.00) not
later than three business days after written demand for payment is delivered by
the holder hereof to the Company at its principal office (which is located at
200 Crescent Court, Suite 1600, Dallas, Texas, on the date of this Note) , with
simple interest at a rate of 8.25% per annum. Interest will be paid at the time
of payment of the related principal or at the time this Note is otherwise
surrendered by the holder hereof for cancellation.

         Payments of principal and interest accrued on the principal being paid
to the date of payment are to be made at the home office of the Company, or
such other place as the holder of this Note shall have specified in writing to
the Company, in lawful money of the United States of America.

         This Note and the other Demand Notes being issued and dated the date
hereof are herein called the "Notes."

         The Company represents and warrants that:

         (i) it is a limited liability company duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     has all power and authority to own and lease its property and to conduct
     its business as presently conducted or contemplated; the Company is duly
     qualified to transact business as a foreign corporation in each
     jurisdiction in which the conduct of its business as presently conducted
     or its ownership or leasing of property makes such qualification
     necessary;

         (ii) the execution and delivery by the Company of the Notes have been
     duly authorized by all the necessary corporate action and the Notes
     constitute the valid and binding agreements of the Company enforceable in
     accordance with their terms except to the extent that enforcement may be
     limited by applicable bankruptcy, insolvency, moratorium or other similar
     laws of general application relating to or affecting the enforcement of
     creditors' rights generally from time to time in effect; and

         (iii) the execution and delivery of the Notes does not and will not
     contravene, or constitute a default under, any law or regulation, the
     limited liability company agreement of the Company or any agreement,
     judgement, injunction, order, decree or instrument binding upon the
     Company, or result in the creation or imposition of any lien, claim or
     encumbrance on any asset of the Company.

         If any of the following events shall occur:
<PAGE>   14

         (i) any representation or warranty made by the Company in this Note
     shall be false in any material respect on the date as of which made or the
     Company shall violate any covenant or agreement made by it in this Note;

         (ii) the Company shall make an assignment for the benefit of
     creditors or admit in writing its inability to pay off its debts as they
     become due;

         (iii) an order, judgement or decree shall be entered adjudicating the
     Company bankrupt or insolvent;

         (iv) the Company shall petition or apply to any tribunal for the
     appointment of a trustee, receiver or liquidator of the Company or of any
     substantial part of its assets, or commence any proceedings relating to
     the Company under and bankruptcy, reorganization arrangement, insolvency,
     readjustment of debt, dissolution or liquidation law of any jurisdiction,
     whether now or hereafter in effect;

         (v) any such petition or application shall be filed, or any such
     proceeding shall be commenced, against the Company and the Company by any
     act shall indicate its approval thereof, consent thereto or acquiescence
     therein, or any order, judgement or decree shall be entered appointing any
     such trustee, receiver or liquidator, or approving the petition in any
     such proceedings, and any such order, judgement or decree shall remain
     unstayed and in effect for more than 60 days; or

         (vi) any order, judgement or decree shall be entered in any
     proceeding against the Company decreeing the dissolution of the Company;

then, notwithstanding any provision herein to the contrary, this Note shall
thereupon be and become forthwith due and payable without demand or other
notice of any kind by the holder hereof or any other person.

         The Company promises to pay the following costs, expenses and
attorneys' fees paid or incurred by the holder of this Note, or adjudged by the
court:

         (a) reasonable costs of collection, costs and expenses and attorneys'
     fees paid or incurred in connection with the collection or enforcement of
     this Note, whether or not suit is filed; and

         (b) costs of suit and such sums as the court may adjudge as
     attorneys' fees in any action to enforce payment of this Note or any part
     of it.

         Upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or his attorney duly authorized in writing, and
upon satisfaction of the Company that such transfer is exempt from registration
under the Securities Act of 1933, a new note for a like principal amount will
be issued to, and registered in the name of, the transferee. The Company may
treat the person in whose name this Note is registered as the owner hereof for
the purpose of receiving payment and for all other purposes, and the Company
shall not be affected by any notice to the contrary.

         No alteration, amendment or waiver of any provision of this Note, made
by agreement of the holder hereof and any other person or party, shall

<PAGE>   15

constitute a waiver of any term hereof, or otherwise release or discharge the
liability of the Company under this Note.

         This Note may not be modified, terminated or discharged nor shall any
waiver hereunder be effective unless in writing signed by the party against
whom the same is asserted.

         The provisions of this Note shall be construed and interpreted, and in
all rights and obligations hereunder determined, in accordance with the laws of
the State of New York.

                                                         HMTF BRIDGE RHY, LLC

                                               By:  /s/ DAVID W. KNICKEL
                                                  ------------------------------
                                              Name:     David W. Knickel
                                                    ---------------------------
                                              Title:    Vice President
                                                     --------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}]]