Document:

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                                                                     Exhibit 4.1

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
AND UNDER APPLICABLE STATE SECURITIES LAWS OR FIBERNET TELECOM GROUP, INC. SHALL
HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES
UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

                          FIBERNET TELECOM GROUP, INC.

                                 PROMISSORY NOTE

U.S. $2,000,000                                              New York, New York
                                                                 March --, 2002

                  FOR VALUE RECEIVED, the undersigned, FiberNet Telecom Group,
Inc., a Delaware corporation (the "Company"), hereby promises to pay to the
order of SDS Merchant Fund, L.P. or any future permitted holder of this
promissory note (the "Payee"), at the principal office of the Payee set forth
herein, or at such other place as the holder may designate in writing to the
Company, the principal sum of up to TWO MILLION DOLLARS (U.S. $2,000,000), or
such other amount as may be outstanding hereunder, together with all accrued but
unpaid interest, in such coin or currency of the United States of America as at
the time shall be legal tender for the payment of public and private debts and
in immediately available funds, as provided in this promissory note (the
"Note").

   1. Principal and Interest Payments.

     (a) The Company shall repay in full the entire principal balance then
outstanding under this Note in the manner provided in Section 1(c) hereof on the
first to occur (the "Maturity Date") of: (i) June 14, 2002; (ii) the
consummation of the Proposed Financing (as defined in Section 1(c) hereof); or
(iii) the acceleration of the obligations as contemplated by this Note. The
Company may prepay all or any part of this Note, in whole or in part at any
time, as set forth in Section 6(d) hereof.

     (b) Interest on the outstanding principal balance of this Note shall accrue
at a rate of eight percent (8%) per annum. Interest on the outstanding principal
balance of the Note shall be computed on the basis of the actual number of days
elapsed and a year of three hundred and sixty (360) days and shall be payable by
the Company in full on the Maturity Date in cash or in shares of Series K
Convertible Preferred Stock, as contemplated in Section 1(c) hereof.
Furthermore, upon the occurrence of an Event of Default, then to the extent
permitted by law, the Company will pay interest to the Payee, payable on demand,
on the outstanding

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principal balance of the Note from the date of the Event of Default until
payment in full at the rate of fourteen percent (14%) per annum.

     (c) At the Maturity Date, the outstanding principal amount of this Note
plus all accrued and unpaid interest herein shall be due and payable in cash or,
at the option of the Payee, converted into shares of Series K Convertible
Preferred Stock of the Company which may be issued in connection with the
proposed offering by the Company of its Series K Convertible Preferred Stock to
certain investors completed at or prior to June 14, 2002; provided, however, if
the Company receives aggregate cash proceeds in connection with the proposed
offering in an amount sufficient to cause the Company's senior lender to convert
$25,000,000 of its outstanding indebtedness into equity securities of the
Company (the "Proposed Financing"), the outstanding principal amount of this
Note plus all accrued and unpaid interest herein shall automatically be
converted into shares of Series K Convertible Preferred Stock. The principal
amount of this Note plus all accrued and unpaid interest shall convert into such
number of shares of Series K Convertible Preferred Stock equal to 110% of the
principal amount of this Note and all accrued interest outstanding divided by
the price per share of the Series K Convertible Preferred Stock. Upon the
conversion of this Note, the outstanding principal amount of this Note, together
with accrued interest hereon, shall be deemed to be the consideration for the
Payee's interest in the Series K Convertible Preferred Stock upon consummation
of the Proposed Financing.

   2. Payment on Non-Business Days. Whenever any payment to be made shall be
due on a Saturday, Sunday or a public holiday under the laws of the State of New
York, such payment may be due on the next succeeding business day and such next
succeeding day shall be included in the calculation of the amount of accrued
interest payable on such date.

   3. Representations and Warranties of the Company. The Company represents
and warrants to the Payee as follows:

     (a) The Company has been duly incorporated and is validly existing and in
good standing under the laws of the state of Delaware, with full corporate power
and authority to own, lease and operate its properties and to conduct its
business as currently conducted.

     (b) This Note has been duly authorized, validly executed and delivered on
behalf of the Company and is a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, subject to
limitations on enforcement by general principles of equity and by bankruptcy or
other laws affecting the enforcement of creditors' rights generally, and the
Company has full power and authority to execute and deliver this Note and to
perform its obligations hereunder.

     (c) The execution, delivery and performance of this Note will not (i)
conflict with or result in a breach of or a default under any of the terms or
provisions of, (A) the Company's certificate of incorporation or by-laws, or (B)
any material provision of any indenture, mortgage, deed of trust or other
material agreement or instrument to which the Company is a party or by which it
or any of its material properties or assets is bound, (ii) result

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in a violation of any material provision of any law, statute, rule, regulation,
or any existing applicable decree, judgment or order by any court, Federal or
state regulatory body, administrative agency, or other governmental body having
jurisdiction over the Company, or any of its material properties or assets or
(iii) result in the creation or imposition of any material lien, charge or
encumbrance upon any material property or assets of the Company or any of its
subsidiaries pursuant to the terms of any agreement or instrument to which any
of them is a party or by which any of them may be bound or to which any of their
property or any of them is subject.

     (d) No consent, approval or authorization of or designation, declaration or
filing with any governmental authority on the part of the Company is required in
connection with the valid execution and delivery of this Note.

   4. Events of Default. The occurrence of any of the following events shall
be an "Event of Default" under this Note:

     (a) the Company shall fail to make the payment of any amount of any
principal outstanding for a period of three (3) business days after the date
such payment shall become due and payable hereunder; or

     (b) the Company shall fail to make any payment of interest for a period of
three (3) business days after the date such interest shall become due and
payable hereunder; or

     (c) the Proposed Financing shall fail to have been consummated by June 14,
2002; or

     (d) any representation, warranty or certification made by the Company
herein or in any certificate or financial statement shall prove to have been
false or incorrect or breached in a material respect on the date as of which
made; or

     (e) the holder of any indebtedness ("Indebtedness") of the Company or any
of its subsidiaries shall accelerate any payment of any amount or amounts of
principal or interest on any indebtedness (the "Indebtedness") (other than the
Indebtedness hereunder) prior to its stated maturity or payment date the
aggregate principal amount of which Indebtedness of all such persons is in
excess of $1,000,000, whether such Indebtedness now exists or shall hereinafter
be created, and such accelerated payment entitles the holder thereof to
immediate payment of such Indebtedness which is due and owing and such
indebtedness has not been discharged in full or such acceleration has not been
stayed, rescinded or annulled within ten (10) business days of such
acceleration; or

     (f) A judgment or order for the payment of money shall be rendered against
the Company or any of its subsidiaries in excess of $1,000,000 in the aggregate
(net of any applicable insurance coverage) for all such judgments or orders
against all such persons (treating any deductibles, self insurance or retention
as not so covered) that shall not be discharged, and all such judgments and
orders remain outstanding, and there shall be any period

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of sixty (60) consecutive days following entry of the judgment or order in
excess of $1,000,000 or the judgment or order which causes the aggregate amount
described above to exceed $1,000,000 during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; or

     (g) the Company shall (i) apply for or consent to the appointment of, or
the taking of possession by, a receiver, custodian, trustee or liquidator of
itself or of all or a substantial part of its property or assets, (ii) admit in
writing its inability to pay its debts as such debts become due, (iii) make a
general assignment for the benefit of its creditors, (iv) commence a voluntary
case under the Bankruptcy Code or under the comparable laws of any jurisdiction
(foreign or domestic), (v) file a petition seeking to take advantage of any
bankruptcy, insolvency, moratorium, reorganization or other similar law
affecting the enforcement of creditors' rights generally, (vi) acquiesce in
writing to any petition filed against it in an involuntary case under the
Bankruptcy Code or under the comparable laws of any jurisdiction (foreign or
domestic), or (vii) take any action under the laws of any jurisdiction (foreign
or domestic) analogous to any of the foregoing; or

     (h) a proceeding or case shall be commenced in respect of the Company or
any of its subsidiaries without its application or consent, in any court of
competent jurisdiction, seeking (i) the liquidation, reorganization, moratorium,
dissolution, winding up, or composition or readjustment of its debts, (ii) the
appointment of a trustee, receiver, custodian, liquidator or the like of it or
of all or any substantial part of its assets or (iii) similar relief in respect
of it under any law providing for the relief of debtors, and such proceeding or
case described in clause (i), (ii) or (iii) shall continue undismissed, or
unstayed and in effect, for a period of thirty (30) consecutive days or any
order for relief shall be entered in an involuntary case under the Bankruptcy
Code or under the comparable laws of any jurisdiction (foreign or domestic)
against the Company or any of its subsidiaries or action under the laws of any
jurisdiction (foreign or domestic) analogous to any of the foregoing shall be
taken with respect to the Company or any of its subsidiaries and shall continue
undismissed, or unstayed and in effect for a period of thirty (30) consecutive
days.

   5. Remedies Upon An Event of Default. If an Event of Default shall have
occurred and shall be continuing, the Payee of this Note may at any time at its
option, (a) declare the entire unpaid principal balance of this Note, together
with all interest accrued hereon, due and payable, and thereupon, the same shall
be accelerated and so due and payable; provided, however, that upon the
occurrence of an Event of Default described in (i) Sections 4(g) and (h),
without presentment, demand, protest, or notice, all of which are hereby
expressly unconditionally and irrevocably waived by the Company, the outstanding
principal balance and accrued interest hereunder shall be automatically due and
payable, and (ii) Sections 4(a) through (f), the Payee may demand the prepayment
of this Note pursuant to Section 6 hereof; or (b) subject to Section 7 hereof,
exercise or otherwise enforce any one or more of the Payee's rights, powers,
privileges, remedies and interests under this Note or applicable law. No course
of delay on the part of the Payee shall operate as a waiver thereof or otherwise
prejudice the right of the Payee. No remedy conferred hereby shall be exclusive
of any other remedy referred to herein or now or hereafter available at law, in
equity, by statute or otherwise. Notwithstanding the

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foregoing, Payee agrees that its rights and remedies hereunder are limited to
receipt of cash or shares of Series K Convertible Preferred Stock in the amounts
described herein.

   6. Prepayment Options.

     (a) Prepayment. Notwithstanding anything to the contrary contained herein,
the Payee shall have the right, at such Payee's option, to require the Company
to prepay all of the sum of this Note at a price equal to 130% of the
outstanding principal amount and any interest accrued and outstanding under this
Note (the "Prepayment Price"), provided, that such prepayment is requested upon
the occurrence of a Major Transaction (as defined in Section 6(e) below).
Nothing in this Section 6(a) shall limit the Payee's rights under Section 5
hereof.

     (b) Mechanics of Prepayment at Option of Payee. At least thirty (30) days
prior to the occurrence of a Major Transaction and within one (1) day after the
occurrence of a Major Transaction, the Company shall deliver written notice
thereof via facsimile and overnight courier ("Notice of a Prepayment Event") to
the Payee. At any time on or after the earlier of the Payee's receipt of a
Notice of a Prepayment Event and the Payee becoming aware of a Major
Transaction, the Payee may require the Company to prepay all of the outstanding
principal amount and any interest accrued and outstanding under this Note by
delivering written notice thereof via facsimile and overnight courier ("Notice
of Prepayment at Option of Payee") to the Company.

     (c) Payment of Prepayment Price. Upon the Company's receipt of a Notice of
Prepayment at Option of Payee from the Payee, the Company shall immediately
notify the Payee by facsimile of the Company's receipt of a Notice of Prepayment
at Option of Payee and the Payee which has sent such a notice shall deliver to
the Company this Note on or before the consummation or closing of a Major
Transaction. The Company shall pay the Prepayment Price to Payee at or prior to
the closing of the Major Transaction; provided that this Note shall have been so
delivered to the Company. If the Company shall fail to prepay all of the
Prepayment Price (other than pursuant to a dispute as to the arithmetic
calculation of the Prepayment Price), in addition to any remedy the Payee may
have under this Note, the Prepayment Price payable in respect of such unprepaid
Notes shall bear interest at the rate of two percent (2.0%) per each period of
thirty (30) consecutive days, pro rated for any period of less than thirty (30)
days until paid in full. Until the Company pays such unpaid Prepayment Price in
full to the Payee, the Payee shall have the option (the "Void Optional
Prepayment Option") to, in lieu of prepayment, require the Company to promptly
return to the Payee this Note that was submitted for prepayment by Payee under
this Section 6(c) and for which the Prepayment Price has not been paid, by
sending written notice thereof to the Company via facsimile (the "Void Optional
Prepayment Notice"). Upon the Company's receipt of such Void Optional Prepayment
Notice(s) and prior to payment of the full Prepayment Price to Payee, (i) the
Notice(s) of Prepayment at Option of Payee shall be null and void with respect
to this Note submitted for prepayment and for which the Prepayment Price has not
been paid and (ii) the Company shall immediately return this Note submitted to
the Company by the Payee for prepayment under this Section 6(c) and for which
the Prepayment Price has not been paid. A Payee's delivery of a Void Optional
Prepayment Notice and exercise of its rights following such notice shall not
affect the

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Company's obligations to make any payments which have accrued prior to the date
of such notice.

     (d) Company's Prepayment Option. The Company may prepay, at the option of
its Board of Directors, all or any portion of the outstanding principal amount
of this Note and the accrued and unpaid interest thereon upon five (5) business
days prior written notice to the Payee (the "Company Prepayment Notice") at a
cash price equal to 150% of the sum of the outstanding principal amount of this
Note and any interest accrued and outstanding (the "Company Prepayment Price").
The Company may not deliver a Company Prepayment Notice to the Payee unless the
Company has clear and good funds for a minimum of the amount it intends to
prepay in a bank account controlled by the Company. The Company Prepayment
Notice shall state the date of prepayment (the "Company Prepayment Date"), the
Company Prepayment Price, the amount of the Note of such Payee to be prepaid,
the amount of accrued and unpaid interest through the Company Prepayment Date
and shall call upon the Payee to surrender to the Company on the Company
Prepayment Date at the place designated in the Company Prepayment Notice such
Payee's Note. The Company Prepayment Date shall be no more than five (5) trading
days after the date on which the Payee is notified of the Company's intent to
prepay the Note (the "Company Prepayment Notice Date"). If the Company fails to
pay the Company Prepayment Price by the sixth (6th) trading day following the
Company Prepayment Notice Date, the prepayment will be declared null and void
and the Company shall lose its right to deliver a Company Prepayment Notice to
the Payee in the future. On or after the Company Prepayment Date, the Payee
shall surrender the Notes called for prepayment to the Company at the place
designated in the Company Prepayment Notice and shall thereupon be entitled to
receive payment of the Company Prepayment Price.

     (e) For purposes of this Note, "Major Transaction" means the consummation
of any of the following transactions: (i) the consolidation, merger or other
business combination of the Company with or into a person or entity (other than
(A) pursuant to a migratory merger effected solely for the purpose of changing
the jurisdiction of incorporation of the Company, or (B) a consolidation, merger
or other business combination in which holders of the Company's or any of its
subsidiaries voting power immediately prior to the transaction continue after
the transaction to hold, directly or indirectly, the voting power of the
surviving entity or entities necessary to elect a majority of the members of the
board of directors (or their equivalent if other than a corporation) of such
entity or entities); (ii) the sale or transfer of all or substantially all of
the Company's or any of its subsidiaries' assets; or (iii) the consummation of a
purchase, tender or exchange offer made to the holders of more than 30% of the
outstanding shares of the Company's common stock; provided, however, the
following shall not be deemed a Major Transaction for purposes of this Note: (a)
the Proposed Financing; (b) a split, reverse split, dividend or distribution
with respect to the common stock of the Company which has been disclosed to the
Payee; or (c) the tender, exchange or repricing of any securities of the Company
which are convertible into shares of common stock of the Company which has been
disclosed to the Payee.

   7. Subordination Agreement. This Note shall be subject to the terms and
conditions of that certain Subordination Agreement, dated of even date herewith,
between Payee

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and the Administrative Agent, as such term is defined in the Amended and
Restated Credit Agreement dated as of February 9, 2001 (as amended,
supplemented, amended and restated or otherwise modified from time to time),
among FiberNet Operations, Inc., Devnet L.L.C. and the financial institutions
from time to time parties thereto as lenders, including without limitation
Nortel Networks Inc., Deutsche Bank AG New York Branch, as administrative agent,
Toronto Dominion (USA) Securities Inc, as syndication agent and First Union
Investors, Inc., as documentation agent.

   8. Replacement. Upon receipt of a duly executed, notarized and unsecured
written statement from the Payee with respect to the loss, theft or destruction
of this Note (or any replacement hereof), and without requiring an indemnity
bond or other security, or, in the case of a mutilation of this Note, upon
surrender and cancellation of such Note, the Company shall issue a new Note, of
like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated
Note.

   9. Parties in Interest, Transferability. This Note shall be binding upon
the Company and its successors and assigns and the terms hereof shall inure to
the benefit of the Payee and its successors and permitted assigns. This Note may
be transferred or sold, subject to the provisions of Section 18 of this Note, or
pledged, hypothecated or otherwise granted as security by the Payee.

  10. Amendments. This Note may not be modified or amended in any manner
except in writing executed by the Company and the Payee.

  11. Notices. Any notice, demand, request, waiver or other communication
required or permitted to be given hereunder shall be in writing and shall be
effective (a) upon hand delivery by telecopy or facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The Company will give written notice to the Payee at least
thirty (30) days prior to the date on which the Company closes its books or
takes a record (x) with respect to any dividend or distribution upon the common
stock of the Company, (y) with respect to any pro rata subscription offer to
holders of common stock of the Company or (z) for determining rights to vote
with respect to a Major Transaction, dissolution, liquidation or winding-up and
in no event shall such notice be provided to such holder prior to such
information being made known to the public. The Company will also give written
notice to the Payee at least twenty (20) days prior to the date on which
dissolution, liquidation or winding-up will take place and in no event shall
such notice be provided to the Payee prior to such information being made known
to the public.

         Address of the Payee:      SDS Merchant Fund, L.P.
                                    c/o SDS Capital Partners
                                    One Sound Shore Drive
                                    Greenwich, CT 06830
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                                    Attention: Steve Derby
                                    Tel No. (203) 629-8400
                                    Fax No.: (203) 629-0345

         With a copy to:            Jenkens & Gilchrist Parker Chapin LLP
                                    The Chrysler Building
                                    405 Lexington Avenue

                                    New York, New York 10174
                                    Attention:  Christopher S. Auguste
                                    Tel. No.: (212) 704-6000
                                    Fax No.: (212) 704-6288

         Address of the Company:    FiberNet Telecom Group, Inc.
                                    570 Lexington Avenue
                                    New York, New York 10022
                                    Attention: President
                                    Tel. No.: (212) 405-6200
                                    Fax No.:  (212) 421-8860

         with a copy to:            Mintz, Levin, Cohn, Ferris, Glovsky and
                                     Popeo, P.C.
                                    Chrysler Center
                                    666 Third Avenue
                                    New York, New York 10022
                                    Attention: Gordon Caplan
                                    Tel. No.:  (212) 935-3000
                                    Fax No.:  (212) 983-3115

  12. Governing Law. This Note shall be governed by and construed in
accordance with the internal laws of the State of New York, without giving
effect to the choice of law provisions. This Note shall not be interpreted or
construed with any presumption against the party causing this Note to be
drafted.

  13. Headings. Article and section headings in this Note are included herein
for purposes of convenience of reference only and shall not constitute a part of
this Note for any other purpose.

  14. Remedies, Characterizations, Other Obligations, Breaches and Injunctive
Relief. The remedies provided in this Note shall be cumulative and in addition
to all other remedies available under this Note, at law or in equity (including,
without limitation, a decree of specific performance and/or other injunctive
relief), no remedy contained herein shall be deemed a waiver of compliance with
the provisions giving rise to such remedy and nothing herein shall limit a
Payee's right to pursue actual damages for any failure by the Company to comply
with the terms of this Note. Amounts set forth or provided for herein with
respect to payments and the like (and the computation thereof) shall be the
amounts to be received by the Payee and shall not,

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except as expressly provided herein, be subject to any other obligation of the
Company (or the performance thereof).

  15. Failure or Indulgence Not Waiver. No failure or delay on the part of
the Payee in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privilege.

  16. Enforcement Expenses. The Company agrees to pay all costs and expenses
of enforcement of this Note, including, without limitation, reasonable
attorneys' fees and expenses.

  17. Binding Effect. The obligations of the Company and the Payee set forth
herein shall be binding upon the successors and assigns of each such party,
whether or not such successors or assigns are permitted by the terms hereof.

  18. Compliance with Securities Laws. The Payee of this Note acknowledges
that this Note is being acquired solely for the Payee's own account and not as a
nominee for any other party, and for investment, and that the Payee shall not
offer, sell or otherwise dispose of this Note other than in compliance with the
laws of the United States of America and as guided by the rules of the
Securities and Exchange Commission. This Note and any Note issued in
substitution or replacement therefore shall be stamped or imprinted with a
legend in substantially the following form:

         "THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
         OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
         SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
         DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND
         UNDER APPLICABLE STATE SECURITIES LAWS OR FIBERNET TELECOM
         GROUP, INC. SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL
         THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
         ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
         LAWS IS NOT REQUIRED."

  19. Severability. The provisions of this Note are severable, and if any
provision shall be held invalid or unenforceable in whole or in part in any
jurisdiction, then such invalidity or unenforceability shall not in any manner
affect such provision in any other jurisdiction or any other provision of this
Note in any jurisdiction.

  20. Consent to Jurisdiction. Each of the Company and the Payee (i) hereby
irrevocably submits to the jurisdiction of the United States District Court
sitting in the Southern District of New York and the courts of the State of New
York located in New York county for the purposes of any suit, action or
proceeding arising out of or relating to this Note and (ii) hereby waives, and
agrees not to assert in any such suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of such court, that the suit,
action or proceeding is brought

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in an inconvenient forum or that the venue of the suit, action or proceeding is
improper. Each of the Company and the Payee consents to process being served in
any such suit, action or proceeding by mailing a copy thereof to such party at
the address set forth in Section 11 hereof and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing in
this Section 20 shall affect or limit any right to serve process in any other
manner permitted by law.

  21. Company Waivers. Except as otherwise specifically provided herein, the
Company and all others that may become liable for all or any part of the
obligations evidenced by this Note, hereby waive presentment, demand, notice of
nonpayment, protest and all other demands and notices in connection with the
delivery, acceptance, performance and enforcement of this Note, and do hereby
consent to any number of renewals of extensions of the time or payment hereof
and agree that any such renewals or extensions may be made without notice to any
such persons and without affecting their liability herein and do further consent
to the release of any person liable hereon, all without affecting the liability
of the other persons, firms or Company liable for the payment of this Note, AND
DO HEREBY WAIVE TRIAL BY JURY.

     (a) No delay or omission on the part of the Payee in exercising its rights
under this Note, or course of conduct relating hereto, shall operate as a waiver
of such rights or any other right of the Payee, nor shall any waiver by the
Payee of any such right or rights on any one occasion be deemed a waiver of the
same right or rights on any future occasion.

     (b) THE COMPANY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A
PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE LAW,
HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT
REMEDY WHICH THE PAYEE OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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                  IN WITNESS WHEREOF, the Company has executed and delivered
this Note as of the date first written above.

                                           FIBERNET TELECOM GROUP, INC.

                                           By:
                                               ---------------------------
                                                 Name:
                                                 Title:

                                       11<PAGE>

                                                                    Exhibit 10.1

                              AMENDED AND RESTATED

                           INTERNATIONAL PAPER COMPANY
                      LONG-TERM INCENTIVE COMPENSATION PLAN

1.   Purpose and Effective Date

     This plan shall be known as the International Paper Company Long-Term
Incentive Compensation Plan (the "Plan"). The purpose of this Plan is to provide
incentive for senior management officers and employees of the Company and its
subsidiaries (the "Company") to improve the performance of the Company on a
long-term basis, and to attract and retain in the employ of the Company persons
of outstanding competence. The terms "subsidiary" and "subsidiaries" as used
herein shall mean corporations which are owned or controlled by International
Paper Company, directly or indirectly.

     The effective date of the Plan is January 1, 1989. The Plan was amended in
1994, 1999 and 2000 by a vote of shareholders.

2.   Administration of the Plan

     (a) The Plan shall be administered by a committee (the "Committee") which
shall be composed of members of the Board of Directors of the Company and which
shall be constituted so as to permit the Plan to comply with the provisions of
Rule 16b-3 under the Securities Exchange Act of 1934, as amended ("1934 Act")
(or any successor rule) and Section 162(m) of the Internal Revenue Code of 1986,
as amended (the "Code"). The Committee is authorized to administer and interpret
the Plan, to authorize, change, and waive the restrictions and conditions
imposed on awards and stock options under the Plan, to delegate the granting of
awards hereunder, and to adopt such rules and regulations for carrying out the
Plan as it may deem appropriate. Decisions of the Committee or its delegates on
all matters relating to the Plan shall be in the Committee's sole discretion and
shall be conclusive and binding on all parties, including the Company, the
shareholders and the participants.

     (b) No member of the Committee or any employee acting on its behalf shall
incur any liability for any action or failure to act in connection with this
Plan. The Company shall indemnify each member of the Committee and any employee
acting on its behalf against any and all claims, losses, damages, expenses and
liabilities arising from any action or failure to act.

3.   Participants

     (a) Participation in this Plan shall be limited to senior managers and
other key employees of the Company as determined by the Committee or its
delegates. Awards of stock and stock appreciation rights and grants of stock
options may be made to such employees and for such respective numbers of Shares,
as the Committee or its delegates, in their absolute discretion

                                       1

<PAGE>

shall determine (all such individuals to whom awards and options shall be
granted being herein called "participants").

     (b) Members of the Board of Directors who are also employees of the Company
shall be eligible to participate in the Plan. However, members of the Board of
Directors who are not also employees of the Company shall be ineligible for
awards under this Plan. Notwithstanding the foregoing, any members of the Board
of Directors who are also retired employees of the Company shall be entitled to
the portions of their awards which are earned or vested pursuant to the
provisions of the Plan.

     (c) A person who is compensated on the basis of a fee or retainer, as
distinguished from salary, shall not be eligible for participation in the Plan.

     (d) Participation in this Plan, or receipt of an award or option under this
Plan, shall not give a participant any right to a subsequent award or option,
nor any right to continued employment by the Company for any period, nor shall
the granting of an award or option give the Company any right to continued
services of the participant for any period. Likewise, participation in the Plan
will not in any way affect the Company's right to terminate the employment of
the participant at any time with or without cause.

4.   Definitions

     (a) "Stock" or "Share" shall mean a share of the common stock of $1.00 par
value of International Paper Company.

     (b) "Performance Shares" shall mean Shares contingently awarded with
respect to an Award Period and issued with the restriction that the holder may
not sell, transfer, pledge, or assign such Shares, and with such other
restrictions as the Committee in its sole discretion may determine (including,
without limitation, restrictions with respect to forfeiture of the Shares and
with respect to reinvestment of dividends in additional restricted Shares),
which restrictions may lapse separately or in combination at such time or times
(in installments or otherwise) as the Committee may determine.

     (c) "Stock Appreciation Right" or "SAR" shall mean a right included in an
award under this Plan to receive upon exercise of the SAR a payment equal to the
amount of the appreciation in the fair market value of a Share over the exercise
price which is set forth in the SAR provided that the exercise price is not less
than the fair market value of a Share on the date the SAR is granted. Payment
upon exercise of an SAR may be in the form of cash, or restricted stock, or
unrestricted stock, or a combination, as determined by the Committee in its sole
discretion. SARs may be awarded separately or in combination with other awards
and stock options under this Plan pursuant to terms and conditions contained in
an award agreement as determined by the Committee.

                                       2

<PAGE>

         (d) "Change of Control of the Company" shall mean a change in control
of a nature that would be required to be reported in response to Item 5(f) of
Schedule 14A of Regulation 14A promulgated under the 1934 Act; provided that,
without limitation, such a change in control shall be deemed to have occurred if
(i) any "person" as such term is used in Sections 13(d) and 14(d)(2) of the 1934
Act (other than employee benefit plans sponsored by the Company) is or becomes
the beneficial owner, directly or indirectly, of securities of the Company
representing 20% or more of the combined voting power of the Company's then
outstanding securities, or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of
Directors of the Company, cease for any reason to constitute at least a majority
thereof unless the election, or the nomination for election, by the Company's
shareholders of each new director was approved by a vote of at least two-thirds
of the directors still in office who were directors at the beginning of the
period.

5.       Stock Available for the Plan

         Subject to the adjustments permitted by Section 6 of the Plan, an
aggregate of twenty-five million five-hundred thousand (25,500,000) Shares shall
be available under the Plan as amended by the shareholders at the 1999 Annual
Meeting for delivery pursuant to the future awards, and options granted pursuant
to the Plan, together with any Shares previously authorized by shareholders
under the Plan, as previously amended, which are not yet issued to, or are
reacquired from, participants in the Plan as previously amended. Such Shares
shall be either previously unissued Shares or reacquired Shares. Shares covered
by awards which are not earned, or which are settled in cash, or which are
forfeited or terminated for any reason, and options which expire unexercised or
which are exchanged for other awards, shall again be available for other awards
and stock options under the Plan. Shares received by the Company in connection
with the exercise of stock options by delivery of other Shares, and received in
connection with payment of withholding taxes, shall again be available for
delivery under the Plan. Shares reacquired by the Company on the open market
using the cash proceeds received by the Company from the exercise of stock
options granted under the Plan as previously amended shall be available for
awards and options up to the number of Shares issued upon option exercises which
generated such proceeds, provided any such exercise occurred on or after January
1, 1989. Notwithstanding the foregoing, the maximum number of Shares available
for delivery pursuant to future awards, options and SARs to executive officers
of the Company who, at the time of grant, are subject to the provisions of
Section 16 of the 1934 Act shall not exceed 14,600,000 Shares, subject to the
adjustments permitted by Section 6 of the Plan. Notwithstanding any other
provision of this Plan, subject, however, to the adjustments permitted by
Section 6 of the Plan, the aggregate number of Shares that can be covered by
future stock options or SARs granted to any individual in any period of three
consecutive fiscal years shall be 1,800,000 and the aggregate number of
restricted Shares issued under this Plan after the 1999 annual meeting of
shareholders may not exceed 3,000,000 Shares.

                                       3

<PAGE>

6.       Changes in Stock and Exercise Price of Stock Options and SARs

         In the event of any stock dividend, split-up, reclassification or other
analogous change in capitalization or any distribution (other than regular cash
dividends) to holders of the Company's common stock, the Committee shall make
such adjustments, if any, as it deems to be equitable in the exercise price of
outstanding options and SARs, and in the number of Performance Shares awarded
and earned, and in the number of Shares covered by any outstanding stock options
and SARs, granted under this Plan, and in the aggregate number of Shares covered
by this Plan.

7.       Time of Granting Awards and Stock Options

         Nothing contained in this Plan, or in any resolution adopted or to be
adopted by the Board of Directors or the shareholders of the Company, shall
constitute the granting of an award or stock option under this Plan. The
granting of an award or stock option pursuant to the Plan shall take place only
when authorized by the Committee or its delegates.

8.       Death or Disability of a Participant

         In the event of the death of a participant, a stock option or an SAR
may be exercised within one year of the participant's death by the participant's
designated beneficiary or beneficiaries (or if no beneficiary has been
designated or survives the participant, by the person or persons who have
acquired the rights of the participant by will or under the laws of descent and
distribution). If a participant becomes disabled, the participant may exercise a
stock option or an SAR within one year after the date of the disability.

         For purposes of this Plan, the term "disabled" shall refer to the
condition of total disability defined in the Company's long-term disability
plan.

         A participant may file with the Committee a designation of a
beneficiary or beneficiaries on a form approved by the Committee, which
designation may be changed or revoked by the participant's sole action, provided
that the change or revocation is filed with the Committee on a form approved by
it. In case of the death of the participant, before termination of employment or
after retirement or disability, any portions of the participant's award to which
the participant's designated beneficiary or estate is entitled under the Plan
and the award agreement, shall be paid to the beneficiary or beneficiaries so
designated or, if no beneficiary has been designated or survives such
participant, shall be delivered as directed by the executor or administrator of
the participant's estate.

9.       Retirement of Holder of Stock Option or SAR

         If a participant retires under a Company pension plan, the participant
may exercise a stock option or an SAR within its remaining term unless otherwise
provided in the award agreement. Retirement under any of the Company's pension
plans shall cause incentive stock options to be treated for federal income tax
purposes as non-qualified stock options on a date which is three

                                       4

<PAGE>

months after the date of retirement. For purposes of this section, retirement
shall be given the meaning used under the Company's pension plan for salaried
employees.

10.      Non-Transferability of Awards

         No award, stock option or SAR under this Plan, and no rights or
interests therein, shall be assignable or transferable by a participant (or
legal representative), except at death by will or by the laws of descent and
distribution unless otherwise permitted by the Committee and by law and, in the
case of incentive stock options, to the extent consistent with Section 422 of
the Code.

11.      Modification of the Plan

         The Board of Directors, without further approval of the shareholders,
may at any time amend the Plan to take into account and comply with any changes
in applicable securities or federal income tax laws and regulations, or other
applicable laws and regulations, including without limitation, any modifications
to Rule 16b-3 under the 1934 Act or Section 162(m) of the Code (or any successor
rule, provision or regulation), terminate or modify or suspend (and if
suspended, may reinstate) any or all of the provisions of this Plan, except that
no modification of this Plan shall without the approval of the Company's
shareholders increase the total number of Shares for which awards, stock options
and SARs may be granted under the Plan (except pursuant to Section 6).

RESTRICTED PERFORMANCE SHARE AWARDS

12.      Terms and Conditions of Awards of Performance Shares

         (a) Each award of Performance Shares under this Plan shall be
contingently awarded with respect to a period of consecutive calendar years as
determined by the Committee (herein called an "Award Period") and shall be made
from reacquired Shares. The first complete Award Period under this Plan began
with the year 1989. A new Award Period shall commence at the beginning of each
calendar year.

         (b) The Performance Shares awarded under this Plan will be earned by a
participant on the basis of the Company's financial performance over the Award
Period for which it was awarded, on the basis of pre-established performance
goals determined by the Committee in its sole discretion. The Performance
measurement criteria used for Performance Shares shall be limited to one or more
of: earnings per share, return on stockholders equity, return on investment,
return on assets, growth in earnings, growth in sales revenue, and shareholder
returns. Such criteria may be measured based on the Company's results or on the
Company's performance as measured against a group of peer companies selected by
the Committee. In applying such criteria, earnings may be calculated based on
the exclusion of discontinued operations and extraordinary items. Subject to the
adjustments permitted by Section 6 of the Plan, the maximum number of
Performance Shares that can be earned for any one individual for any future
Award Period is 100,000. Subject to such maximum number of Shares, the amount,
if any, that may be earned by

                                       5

<PAGE>

a participant receiving Performance Shares may vary in accordance with the level
of achievement of the performance goal or goals established by the Committee.

         (c) A participant's rights with respect to all unearned Performance
Shares shall terminate at the end of each Award Period.

         (d) The number of Shares determined by the Committee to have been
earned with respect to any Award Period shall be final, conclusive and binding
upon all parties, including the Company, the shareholders and the participants.

         (e) All dividend equivalents credited on Performance Shares during an
Award Period shall be reinvested in additional Performance Shares (which shall
be allocated to the same Award Period, and shall be subject to being earned by
the participant on the same basis as the original award).

         (f) All dividends paid on earned restricted Shares under this part of
the Plan shall be paid in cash.

         (g) As a condition of any award of Performance Shares under this Plan,
each participant shall enter into an award agreement authorized by the
Committee. The Committee may in its sole discretion, include additional
conditions and restrictions in the award agreement entered into under this Plan.
Settlements in Shares may be subject to forfeiture and other contingencies as
the Committee may determine.

         (h) At the discretion of the Committee, SARs may be awarded separately
or in combination with other awards or grants under this portion of the Plan.

         (i)      In the event a Change of Control of the Company occurs, then

                  (A)  all restrictions shall be immediately removed with
                       respect to all earned Performance Shares and

                  (B) a pro rata portion of each outstanding Award that would
         have been earned were Company performance to reach the goals
         established by the Committee for each uncompleted Award Period shall be
         deemed earned (based on the number of months of the total Award Period
         which have been completed prior to the Change of Control), and all
         restrictions shall be immediately removed with respect to that number
         of shares; the remaining portion of each Award shall remain outstanding
         as Performance Shares subject to the provisions of this Plan and the
         participant's award agreements.

                                       6

<PAGE>

STOCK OPTION AWARDS

13.      Terms and Conditions of Stock Options

         (a) The Committee and its delegates shall have the sole authority to
grant stock options under this Plan. Such grants may consist of non-qualified
stock options, or Incentive Stock Options, or any combination thereof, as the
Committee shall decide from time to time. The aggregate fair market value
(determined at the time the option is granted) of the Stock with respect to
which Incentive Stock Options are exercisable for the first time by an
individual during a calendar year shall not exceed $100,000 as determined under
Section 422A of the Internal Revenue Code or comparable legislation. The maximum
number of Shares for which stock options can be awarded to any one individual
over any consecutive three-year period commencing on the effective date of the
amendment to the Plan is 1,800,000 Shares, subject to the adjustments permitted
by Section 6 of the Plan.

         (b) The term of each option granted under the Plan shall be set by the
Committee, but in no event shall an Incentive Stock Option be exercised after
ten years following the date of its grant under this Plan.

         (c) The exercise price of each option granted under the Plan shall be
no less than the fair market value of the underlying Stock at the time the
option is granted as determined by the Committee.

         (d) Prior to the exercise of the option and delivery of the Stock
represented thereby, the participant shall have no rights to any dividends nor
be entitled to any voting rights on any Stock represented by outstanding
options.

         (e) As a condition of any grant of a stock option under this Plan, each
participant shall enter into an award agreement authorized by the Committee. The
Committee may, in its sole discretion, include additional conditions and
restrictions in the award agreement entered into under this Plan.

         (f) At the discretion of the Committee, SARs may be awarded separately
or in combination with other awards or grants under this part of the Plan.

14.      Exercise of Stock Options

         (a) Each stock option granted under this Plan shall be exercisable as
provided in accordance with the document evidencing the option by full payment
of the option price in cash or at the discretion of the Committee in Stock owned
by the participant (including Performance Shares and other restricted Shares
awarded under this Plan). Unless otherwise provided herein, a participant may
exercise a stock option only if he or she is an employee of the Company and has
continuously been an employee of the Company since the date the option was
granted.

                                       7

<PAGE>

         (b) If a stock option under this Plan is exercised by a participant,
then, at the discretion of the Committee, the participant may receive a
replacement option under this part of the Plan to purchase a number of Shares
equal to the number of Shares which the participant purchased on the exercise of
the option, with an exercise price equal to the current fair market value, and
with a term extending to the expiration date of the original stock option. If a
stock option is exercised by delivery of restricted Shares, then the participant
shall receive an equal number of identically restricted Shares; the remaining
option exercise Shares shall contain any applicable restrictions which are set
forth in the participant's award agreement and shall otherwise be unrestricted.

         (c) In the event a Change of Control of the Company occurs, all stock
options granted under this part of the Plan shall be immediately exercisable,
and all restrictions on Shares issued under this plan pursuant to the exercise
of stock option shall be immediately removed.

CONTINUITY AWARDS

15.      Terms and Conditions of Executive Continuity Awards

         (a) Executive Continuity Awards may be made from time to time under
this Plan at the discretion of the Committee, in such amounts and upon such
terms and conditions as are established by the Committee under this portion of
the Plan.

         (b) An executive Continuity Award shall consist of a tandem grant of
restricted Shares together with a related non-qualified stock option (options to
be granted in accordance with the provisions of sections 13-14 of this Plan) to
purchase a specified number of Shares, in such amounts as may be determined by
the Committee. All dividends paid on the restricted Shares shall be reinvested
in additional shares of restricted Shares (subject to the same restrictions,
terms and conditions). Upon attainment of age 65, (or death or the executive's
becoming disabled) or such other age as is determined in the sole discretion of
the Committee, or upon a Change of Control of the Company (as limited under
subsection (h) below), the restrictions on the award will be removed, and the
award will vest in the following manner, except as otherwise determined by the
Committee:

                  (i) If the current realizable gain on a tandem stock option is
         greater than the current market value of the related restricted Shares
         (including re-invested dividends), then all such shares of restricted
         Shares shall be canceled and the term of the stock option shall
         continue for the term set forth in the award agreement.

                  (ii) If the current market value of the restricted Shares
         (including re-invested dividends) is greater than the current
         realizable gain on any related tandem stock option, then the option
         shall be canceled and the restrictions shall be removed from all of the
         related restricted Shares.

                                       8

<PAGE>

         (c) If a stock option granted under this portion of the Plan is
exercised prior to the executive's attainment of an age determined by the
Committee, the related shares of restricted Shares shall be canceled, and the
additional Shares issued upon the exercise of the stock option shall be
restricted and subject to either forfeiture or repurchase by the Company at the
option exercise price for a period ranging up to 12 years from the date of the
grant of the option, or longer, as determined by the Committee and set forth in
the award agreement.

         (d) A stock option granted under this portion of the Plan shall be
exercisable as provided in accordance with the document evidencing the option by
full payment of the option price in cash or, at the discretion of the Committee,
in Stock owned by the participant (including Performance Shares awarded under
this Plan). At the discretion of the Committee, the participant may receive a
replacement stock option to purchase a number of shares equal to the number of
shares purchased by the participant in exercising the option, with an exercise
price equal to the current market value, and with a term extending to the
expiration date of the original stock option. If an option is exercised by
delivery of restricted Shares, then the participant shall receive an equal
number of identically restricted Shares; the remaining option exercise Shares
shall be subject to the Company's right to impose restrictions on such Shares as
described in subsection (c) above.

         (e) As a condition of any executive Continuity Award under this Plan,
each participant shall enter into an award agreement authorized by the
Committee. The Committee may, in its sole discretion, include additional
conditions and restrictions in the award agreement.

         (f) At the discretion of the Committee, SARs may be awarded separately
or in combination with other awards or grants under this portion of the Plan.

         (g) In the event a Change of Control of the Company occurs, all
restrictions shall be immediately removed with respect to the exercise of stock
options under this part of the Plan and with respect to Shares issued upon the
exercise of any stock option. A Change of Control, for these purposes, shall not
include a transaction initiated by management such as a management led buyout or
recapitalization except where such transaction (i) is in response to the
acquisition of 10% or more of the Company's stock or the announcement of a
tender offer for 20% or more of the Company's stock (other than by employee
benefit plans sponsored by the Company); or (ii) is approved by the Board in
accordance with the standards set forth in Section 717 of the New York Business
Corporation Law or any successor provision.

16.      Terms and Conditions of Other Continuity Awards

         (a) Awards of restricted stock hereinafter called "continuity awards"
may be made from time to time under the Plan at the discretion of the Committee
or its delegates, in such amounts and upon such terms and conditions as are
established by the Committee or its delegates under this portion of the Plan.
All dividends paid on the restricted Shares shall be reinvested in additional
shares of restricted Shares (subject to the same restrictions, terms and
conditions.)

                                       9

<PAGE>

         (b) As a condition of any such continuity award under this Plan, each
participant shall enter into an award agreement authorized by the Committee or
its delegates. The Committee or its delegates, in their sole discretion, may
include additional conditions or restrictions in the award agreement.

         (c) In the event a Change of Control of the Company occurs, all
restrictions shall be immediately removed with respect to Shares issued as a
continuity award. A Change of Control, for these purposes, shall not include a
transaction initiated by management, such as a management led buyout or
recapitalization except where such transaction (i) is in response to the
acquisition of 10% or more of the Company's stock or the announcement of a
tender offer for 20% or more of the Company's stock (other than by employee
benefit plans sponsored by the Company); or (ii) is approved by the Board in
accordance with the standards set forth in Section 717 of the New York Business
Corporation Law or any successor provision.

MISCELLANEOUS

17.      Prior Awards

         Awards of stock options and Performance Shares made under the Plan
prior to the amendments approved by shareholders at the 1994 annual meeting
continued to be subject to the terms of the Plan and the instruments evidencing
such awards prior to such amendments becoming effective.

18.      Tax Withholding

         The Company shall have the right to deduct from any settlement of an
award made under the Plan, including the delivery or vesting of Shares, a
sufficient amount to cover withholding of any federal, state, local or foreign
jurisdiction taxes required by law, or to take such other action as may be
necessary to satisfy any such withholding obligations. The Committee may permit
or require Shares to be used to satisfy required tax withholding and such Shares
shall be valued at the fair market value as of the settlement date of the
applicable award.

                                       10

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