-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ep8T2ySsGm+XWYoVa4/eaPuD1i9/VBo12xZI9b62CVAAcGqqPAFLK7DsGzoGtv/V p0pmVay3ld1OfOmQFuCtQQ== /in/edgar/work/0000072741-00-000229/0000072741-00-000229.txt : 20001110 0000072741-00-000229.hdr.sgml : 20001110 ACCESSION NUMBER: 0000072741-00-000229 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20001109 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: NEON COMMUNICATIONS INC CENTRAL INDEX KEY: 0001116086 STANDARD INDUSTRIAL CLASSIFICATION: [4813 ] IRS NUMBER: 043523408 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-59633 FILM NUMBER: 757333 BUSINESS ADDRESS: STREET 1: 2200 W PARK DR CITY: WESTBOROUGH STATE: MA ZIP: 01581 BUSINESS PHONE: 5086167800 MAIL ADDRESS: STREET 1: 2200 WEST PARK DRIVE CITY: WESTBOROUGH STATE: MA ZIP: 01581 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: NORTHEAST UTILITIES SYSTEM CENTRAL INDEX KEY: 0000072741 STANDARD INDUSTRIAL CLASSIFICATION: [4911 ] IRS NUMBER: 042147929 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 174 BRUSH HILL AVE CITY: WEST SPRINGFIELD STATE: MA ZIP: 01090-0010 BUSINESS PHONE: 4137855871 MAIL ADDRESS: STREET 1: 107 SELDON ST CITY: BERLIN STATE: CT ZIP: 06037-1616 SC 13D/A 1 0001.txt AMENDMENT TO SCHEDULE 13D SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 SCHEDULE 13D (Rule 13d-101) UNDER THE SECURITIES EXCHANGE ACT OF 1934 (Amendment No. 1) NEON Communications, Inc. - ----------------------------------------------------------------------------- (Name of Issuer) Common Stock, $.01 par value per share - ----------------------------------------------------------------------------- (Title of Class of Securities) 640 506 10 1 - ----------------------------------------------------------------------------- (CUSIP Number) Jeffrey C. Miller, Esq., Northeast Utilities Service Company, 107 Selden Street, Berlin, Connecticut 06037 (860) 665-3532 - ----------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) October 19, 2000 - ----------------------------------------------------------------------------- (Date of Event Which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13-d- 1(e), 13d-1(f) or 13d-1(g), check the following box . Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. 1 NAMES OF REPORTING PERSONS Mode 1 Communications, Inc. I.R.S. IDENTIFICATIN NO. OF ABOVE PERSONS (ENTITIES ONLY) 06-1455488 2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP (a) (b)X 3 SEC USE ONLY 4 SOURCE OF FUNDS None 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) 6 CITIZENSHIP OR PLACE OF ORGANIZATION Connecticut NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: 7. SOLE VOTING POWER None (Item 5) 8 SHARED VOTING POWER 13,837,717 (Item 5) 9 SOLE DISPOSITIVE POWER None 10 SHARED DISPOSITIVE POWER 4,774,038 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 13,837,717 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 64.8 % 14 TYPE OF REPORTING PERSON CO CUSIP No. 640 506 10 1 1 NAMES OF REPORTING PERSONS NU Enterprises, Inc. I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 06-1533877 2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP (a) (b)X 3 SEC USE ONLY 4 SOURCE OF FUNDS None 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) 6 CITIZENSHIP OR PLACE OF ORGANIZATION Connecticut NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: 7. SOLE VOTING POWER None (Item 5) 8 SHARED VOTING POWER 13,837,717 (Item 5) 9 SOLE DISPOSITIVE POWER None 10 SHARED DISPOSITIVE POWER 4,774,038 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 13,837,717 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 64.8 % 14 TYPE OF REPORTING PERSON CO CUSIP No. 640 506 10 1 1 NAMES OF REPORTING PERSONS Northeast Utilities I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 04-2147929 2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP (a) (b)X 3 SEC USE ONLY 4 SOURCE OF FUNDS None 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) 6 CITIZENSHIP OR PLACE OF ORGANIZATION Massachusetts NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: 7. SOLE VOTING POWER None (Item 5) 8 SHARED VOTING POWER 13,837,717 (Item 5) 9 SOLE DISPOSITIVE POWER None 10 SHARED DISPOSITIVE POWER 4,774,038 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 13,837,717 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 64.8 % 14 TYPE OF REPORTING PERSON OO Item 1. Security and Issuer. (a) Class: Common Stock, par value $.01 per share (b) Name of Issuer: NEON Communications, Inc. (c) Address of Issuer's Principal Executive Office: 2200 West Park Drive, Westborough, Massachusetts 01851 Item 2. Identity and Background. (a) Name of Filing Person: Northeast Utilities (NU), on behalf of itself, its wholly owned subsidiary NU Enterprises, Inc. (NUEI), and Mode 1 Communications, Inc. (Mode 1), a wholly owned subsidiary of NUEI. (b) Address of principal business and principal office: The principal business and principal office address of NU, NUEI and Mode 1 is 107 Selden Street, Berlin, Connecticut 06037. (c) Principal Business: Public utility and other services. (d), (e) None of NU, NUEI and Mode 1 has been convicted, during the last five years, in a criminal proceeding (excluding traffic violations or similar misdemeanors). None of NU, NUEI, and Mode 1 was a party, during the last five years, to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. (f) Citizenship NU is a Massachusetts voluntary trust. NUEI and Mode 1 are Connecticut corporations. Trustees, Directors and Executive Officers of NU, NUEI, and Mode 1: (a) Name: Cotton M. Cleveland (b) Residence or Business Address: 123 Main Street, P.O. Box 935, New London, NH 03257 (c) Present Principal Occupation: President, Mather Associates (a) Name: Sanford Cloud, Jr. (b) Residence or Business Address: 475 Park Avenue South, 19th Floor, New York, NY 10016 (c) Present Principal Occupation: President and Chief Executive Officer, The National Conference for Community and Justice (a) Name: William F. Conway (b) Residence or Business Address: 41588 North 107th Way, Scottsdale, AZ 85262 (c) Present Principal Occupation: President, William F. Conway & Associates, Inc. (a) Name: E. Gail de Planque (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: President, Strategy Matters, Inc. (a) Name: John H. Forsgren (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Executive Vice President and Chief Financial Officer, Northeast Utilities (a) Name: Raymond L. Golden (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Independent Consultant (a) Name: Cheryl W. Grise (b) 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Senior Vice President, Secretary and General Counsel, Northeast Utilities (a) Name: Elizabeth T. Kennan (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: President Emeritus of Mount Holyoke College (a) Name: Bruce D. Kenyon (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: President-Generation Group, Northeast Utilities (a) Name: Hugh C. MacKenzie (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: President-Retail Business Group, Northeast Utilities (a) Name: Michael G. Morris (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Chairman of the Board, President and Chief Executive Officer, Northeast Utilities (a) Name: Emery G. Olcott (b) Residence or Business Address: 800 Research Parkway, Meriden, CT 06450 (c) Present Principal Occupation: Chairman, President and Chief Executive Officer, Packard BioScience Company (a) Name: William J. Pape II (b) Residence or Business Address: 398 Meadow Street, P. O. Box 2090, Waterbury, CT 06722-0290 (c) Present Principal Occupation: Publisher, Waterbury Republican-American (a) Name: Robert E. Patricelli (b) Residence or Business Address: 22 Waterville Road, Avon, CT 06001 (c) Present Principal Occupation: Chairman, President and Chief Executive Officer, Women's Health USA, Inc. (a) Name: Thomas W. Philbin (b) Residence or Business Address: 24 Prime Parkway, Natick, MA 01760 (c) Present Principal Occupation: President, HEC Inc. (a) Name: Frank P. Sabatino (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Senior Vice President-Power Marketing, Select Energy, Inc. (a) William W. Schivley (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: President, Select Energy, Inc. (a) Gary D. Simon (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Senior Vice President-Enterprise Development and Analysis, Northeast Utilities Service Company (a) Name: John F. Swope (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Attorney (a) Lisa J. Thibdaue (b) Residence or Business Address: 107 Selden Street, Berlin, CT 06037 (c) Present Principal Occupation: Vice President-Rates, Regulatory Affairs and Compliance, Northeast Utilities Service Company (a) Name: John F. Turner (b) Residence or Business Address: 1800 North Kent Street, Suite 1120, Arlington, VA 22209 (c) Present Principal Occupation: President and Chief Executive Officer, The Conservation Fund (d) , (e) To the best knowledge of NU, NUEI, and Mode 1, no trustee, director or officer of NU, NUEI, or Mode 1 has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), or been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which it, he or she is subject to a judgment, decree or final order enjoining future violations of or prohibiting or mandating activities subject to, federal or state securities laws or finding any violations with respect to such laws. (f) Citizenship: Each of the trustees, officers and directors of NU, NUEI, and Mode 1 is a citizen of the United States of America. Item 3. Source and Amount of Funds or Other Consideration. None. Item 4. Purpose of Transaction. See Item 6, below. Item 5. Interest in Securities of the Issuer. (a) and (b). The following table sets forth the aggregate number of shares and percentages of the outstanding shares of Common Stock of NEON Communications, Inc. beneficially owned by Mode 1 and through Mode 1, by NU and NUEI, and by each executive officer, director and controlling person, if any, of Mode 1, NU and NUEI, and, with respect to the knowledge of Mode 1, NU and NUEI, each other party who may be deemed together with Mode 1 to constitute a group. Any of the aforementioned persons whose names do not appear in the table below do not beneficially own any shares of Common Stock of NEON Communications, Inc. Except as otherwise noted, each person listed has sole voting and dispositive power over all shares listed opposite its name. Number of shares Percentage of Name of Person beneficially owned outstanding shares Mode 1 Communications, Inc. 13,837,717*#@ 64.8% Exelon Ventures Corp. 9,381,916* 56.3% Consolidated Edison Communications, Inc. 9,381,916* 56.3% New England Business Trust 9,229,839# 43.2% NUEI owns all of the issued and outstanding shares of Mode 1, and NU owns all of the issued and outstanding shares of NUEI. Therefore, NU and NUEI are indirect beneficial owners of all of the Shares owned by Mode 1. Pursuant to Section 13(d)(3) under the Securities Exchange Act, Consolidated Edison Communications, Inc., Exelon Ventures Corp. and Mode 1 may be deemed to beneficially own the shares of Common Stock of NEON Communications, Inc. owned by the others as result of the limited agreement as to voting described in Item 6, below. Pursuant to Section 13(d)(3) under the Securities Exchange Act, New England Business Trust and Mode 1 may be deemed to beneficially own the shares of Common Stock of NEON Communications, Inc. owned by the others as result of the limited agreement as to voting described in Item 6, below. Two directors of Mode 1 Communications, Inc. have legal or beneficial ownership of NEON Communications Common Stock, described as follows: Gary D. Simon, has reported, as of December 31, 1999, that he owns options to purchase 5,462 shares. John H. Forsgren, has reported, as of December 31, 1999, that he owns options to purchase 5,462 shares. ________________ *Shared voting power as to 9,381,916 shares for the limited purpose described in Item 6, below. # Shared voting power as to 9,229,839 shares for the limited purpose described in Item 6, below. @ Shared voting and dispositive power with NU and NUEI as to 4,774,038 shares owned by Mode 1. ________________ No person named in response to Item 2 has effected any transaction in the class of securities reported on during the past 60 days. To the knowledge of the reporting persons named herein, neither CECI nor Exelon has effected any transaction in the class of securities reported on during the past 60 days. Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. Mode 1, Exelon Ventures Corp. ("Exelon"), Consolidated Edison Communications, Inc. ("CECI"; Mode 1, Exelon, and CECI being referred to each as a "Stockholder" and in the aggregate as "Stockholders") and NEON Communications, Inc. ("NEON Communications") are parties to a Stockholders' Agreement dated as of September 14, 2000 (the "September Stockholders' Agreement") under which the Stockholders agreed to vote all of the shares of Common Stock of NEON Communication owned by them or over which any of them had voting control, so as to fix the numbers of directors of NEON Communications at nine, to elect two directors designated by Mode 1 initially John H. Forsgren and Gary D. Simon, one director designated by Exelon Ventures Corp., initially Robert A. Shinn, and one member designated by CECI, initially Peter A. Rust. Each of the Stockholders also agreed not to vote to remove any director designated by any of the other Stockholders, except for bad faith or willful misconduct. Mode 1's right to designate two directors shall be reduced to one in the event its stock ownership is reduced below certain specified levels. Each of the Stockholders also granted to the other Stockholders on a pro rata basis certain rights of first offer with respect to any transfers (including upon the occurrence of certain bankruptcy or insolvency events) of shares of Common Stock of NEON Communications owned by it, except for transfers of up to 160,000 shares within any rolling 12-month period, transfers to certain affiliated parties, and certain change in control transactions with respect to the ultimate parent of the Stockholder. In addition, under a certain FiveCom, Inc. Principal Stockholders Agreement (the "CMP Agreement"), dated May 28, 1998 between NU and Central Maine Power Company ("CMP"), Mode 1 and NEON Communications have certain rights to acquire shares of NEON Communications owned by CMP and NEON Communications has certain rights to acquire its shares owned by Mode 1, in each case in the event of a third party offer and upon the occurrence of certain bankruptcy and insolvency events. Pursuant to the September Stockholders' Agreement, NEON Communications has granted to each of the Stockholders on a pro rata basis an option to acquire any shares of NEON Communications which NEON Communications has a right to acquire from CMP and to each of the Stockholders, other than Mode 1, on a pro rata basis an option to acquire any shares of NEON Communications which NEON Communications has a right to acquire from Mode 1. NEON Communications has agreed to exercise its rights under the CMP Agreement upon exercise of these rights by the Stockholders. As of October 19, 2000, the CMP Agreement was amended by a First Amendment to Northeast Optic Network, Inc. Principal Stockholders Agreement. This amendment added Mode 1 and New England Business Trust, an indirect wholly- owned subsidiary of CMP, as parties to the CMP Agreement. The purpose of this amendment was to (i) allow the resale of shares held by the parties pursuant to Rule 144 under the Securities Act of 1933 and (ii) to agree among the parties as to voting of shares for directors. The amendment states that parties to the CMP Agreement agree to vote their shares so as to fix the number of directors of NEON Communication at nine (9), and to elect (i) two members designated by NU, initially John H. Forsgren and Gary D. Simon and (ii) two members designated by NEBT, initially Michael McClain and Michael I. German. Each of the parties also agreed not to vote to remove any director designated by the other party, except for bad faith or willful misconduct. Each Party's right to designate two directors shall be reduced to one in the event its stock ownership is reduced below certain specified levels. Item 7. Material to be Filed as Exhibits. Exhibit A: Stockholders' Agreement dated September 14, 2000* Exhibit B: FiveCom, Inc. Principal Stockholders Agreement Exhibit C: First Amendment to Northeast Optic Network, Inc. Principal Stockholders Agreement * Previously filed _________________ The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Includes 4,607,878 shares beneficially held by others who, together with Mode 1 Communications, Inc., may be held to constitute a group and 4,455,801 shares beneficially held by others who, together with Mode 1 Communications, Inc., may be held to constitute a group. Includes 4,607,878 shares beneficially held by others who may be held to constitute a group of which subsidiary is a member and 4,455,801 shares beneficially held by others who may be held to constitute a group of which subsidiary is a member. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. November 9, 2000 /s/ Randy A. Shoop Name: Randy A. Shoop Title: Assistant Treasurer-Finance of Northeast Utilities, on behalf of itself and its subsidiaries, NU Enterprises Inc. and Mode 1 Communications, Inc. EX-99.1 2 0002.txt FIVECOM PRINCIPAL STOCKHOLDERS' AGREEMENT EXHIBIT B FiveCom, Inc. Principal Stockholders Agreement THIS AGREEMENT, made as of this 28th day of May, 1998, by and between Central Maine Power Company, a Maine investor-owned utility and Maine corporation with a place of business at Augusta, Maine and mailing address of 83 Edison Drive, Augusta, Maine 04336 (hereinafter called "CMP") and Northeast Utilities, a Massachusetts business trust with a place of business in Brush Hill, Massachusetts and mailing address of P. O. Box 270, Hartford, Connecticut 06141-0270 (hereinafter called "NU"). WITNESSETH: WHEREAS, CMP and certain affiliates and certain affiliates of NU intend to enter into a Restructuring and Contribution Agreement, the intent of which is to cause the creation of FiveCom, Inc. a Delaware corporation (hereinafter called "FiveCom"), which will succeed to the ownership of FiveCom LLC (hereinafter called "Old FiveCom"), NECOM LLC and FiveCom of Maine LLC, Massachusetts limited liability companies, and result in CMP, through its affiliate MaineCom Services, owning 52.76%, and NU, through its affiliate Mode 1 Communications, Inc. (formerly NU/Mode 1 Communications, Inc. and hereinafter called "Mode 1"), owning 40.78%, of the common stock of FiveCom (all of such transactions being hereinafter called, collectively, the "Restructuring'); and WHEREAS, CMP and NU intend to sell certain of the common stock which they own in FiveCom in a public offering (hereinafter called the "Offering") and to cause FiveCom to offer certain of its own shares in such Offering as well, such that the parties will collectively own, post-Offering, approximately 51% or more of the common stock of FiveCom; and WHEREAS, the parties desire to preserve certain of the rights that each has under the NECOM LLC Amended and Restated Operating Agreement, dated as of July 11, 1996, by and between Old FiveCom and Mode 1 following the Restructuring and prior to the Offering, and, following the Offering, to alter such rights going forward, upon the terms stated below. NOW, THEREFORE, CMP and NU agree as follows: ARTICLE 1 POST-RESTRUCTURING/PRE-OFFERING RIGHTS 1.1 Between the Restructuring and the Offering, each party agrees that, without the agreement and consent of the other party, it will not permit FiveCom, nor will such party permit any of its respective subsidiaries, including, respectively, MaineCom Services and Mode 1, to take any action the effect of which would be to allow or cause FiveCom to take any of the following actions: a. Contracts With A Party or Affiliate. Enter into any material agreement, contract, instrument or other transaction with either party or any affiliate thereof, other than any 100% owned subsidiary of FiveCom (such approval not to be unreasonably withheld if entered into at no greater than market rates, on commercially reasonable terms and conditions such as are no less favorable to FiveCom than would be available in a bona fide arms' length transaction with a person, trust, corporation, organization, partnership or other entity (hereinafter called "Person") which is not an affiliate); b. Merger, Sale of Assets. Merge or consolidate with any Person, liquidate or dissolve, change its form of organization, or sell, lease, exchange or transfer all or substantially all of its assets; c. Indebtedness. Authorize the incurrence, assumption or guaranty, or suffer the existence, of any indebtedness in excess of the sum of (A) $50,000 in the aggregate during any one fiscal year and at any one time outstanding, (B) a reasonable amount of working capital indebtedness, (C) indebtedness secured by "Permitted Liens" and (D) any other indebtedness in an operating budget previously approved by the parties or otherwise permitted under (f); "Permitted Liens" is hereby defined to mean any mortgage, deed of trust, security interest, pledge, hypothecation, encumbrance, lien (statutory or other), or other security agreement and the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction in respect of any of the foregoing (hereinafter called "Lien") created by the security documents in connection with a loan from any lender which provides financing for the purchase and installation of any portion of New England Optical Network and/or any extension or refinancing thereof; (b) materialmen's, mechanics', workers', repairmen's, employees' or other like Liens in favor of any Person which arise in the ordinary course of business of FiveCom but not (unless otherwise permitted by this Agreement) in connection with any indebtedness or guarantee obligation; (c) Liens arising out of judgments, award or appeals with respect to which at the time an appeal or proceeding for review is being prosecuted in good faith and which have been bonded or for the payment of which adequate reserves shall have been provided; (d) any Lien securing indebtedness permitted under this Section; and (e) minor defects, irregularities, encumbrances and clouds on title and statutory liens which do not materially impair the property affected thereby and which do not individually or in the aggregate materially impair the performance, cost efficiency, value, utility, remaining economic useful life, reliability or residual value of the property of FiveCom or the use thereof for its intended purpose. d. Amendments or Assignments, etc. Amend or modify, waive compliance with any material provision of, terminate, assign any material rights FiveCom may have under, or consent to or permit the assignment by any other Person of any material right such Person may have under, or giving consents or exercising material rights under, or agreeing to any such amendment, modification, termination or consent of, or agreeing to any waiver of compliance with any provision of, or agreeing to any such assignment or exercise of any rights under, the agreements, documents, instruments and contracts listed under the following exhibit designations in Item 16(a) to the Registration Statement on Form S-1 of NorthEast Optic Network, Inc. filed with the Securities and Exchange Commission on May 22, 1998: 1.1-4.3 and 10.1-10.37, and any other material agreement to which the Company is a party. e. Liens. Creating or otherwise allowing any Lien to be on, or otherwise to affect, any of FiveCom's property, except Permitted Liens; f. Budget and Capital Improvements. Adopt the annual budgets and approve capital expenditures exceeding the limits therein or as otherwise approved hereunder; notwithstanding the foregoing, FiveCom's management may authorize capital expenditures or indebtedness arising out of an emergency which requires immediate action, so long as they give notice to the parties as soon as possible of the incurrence of such expenditures and obtain any requisite consent to the continuation of any such expenditures after the immediate emergency has passed; g. Charges. Approve annually (at the same time as the budget is approved as per paragraph (f) above) all charges under the agreements or contracts referenced in paragraph (a) above, and any exercise of any material rights or elections under such agreements or contracts; h. Bankruptcy Filing. (i) Commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its assets, or making a general assignment for the benefit of its creditors; or (ii) if there shall be commenced against FiveCom any case, proceeding or other action of a nature referred to in clause (i) above, taking any action in furtherance of, or indicating its consent to, approval of, or acquiescence, therein, or (iii) admitting in writing its inability to pay its debts as they become due; and i. Sale of Valuable Assets. Sell, assign or otherwise transfer title to any asset, or any group of assets in the same transaction, or in related transactions, having an aggregate value in excess of $500,000. ARTICLE 2 RIGHT OF FIRST OFFER 2.1 (a) Offer to Company and Other Party: If either party ("Offering Party") desires to sell, transfer or otherwise dispose for value all or any of its common stock of FiveCom, other than in connection with the Offering, such Offering Party (or its successor in interest, if any, should the Offering Party have dissolved or filed for bankruptcy) shall first offer such common stock to the Company and the other party ("Offeree Party") by giving to the Company and to the Offeree Party written notice (the "Offer Notice") of such Offering Party's desire to sell, transfer, or otherwise dispose of such common stock, and all material terms and conditions of the offer (including, without limitation, the proposed purchase price). Failure on the part of the Offering Party to issue such Offer Notice and/or to thereafter observe the requirements of this Section 2.1 (a) shall render any purported transfer of such common stock void and of no effect. The Company and the Offeree Party shall have an option to purchase such common stock on such terms, and at such offering price as set forth in the Offering Notice. Such option shall be exercised within thirty (30) days after such notice by notice to the Offering Party. The Company shall have priority over the Offeree Party, and, if the Company exercises its option, the option of the Offeree Party shall only cover that portion of the common stock, if any, not covered by the Company in exercising its option. In the event that neither the Company nor the Offeree Party exercises their options as to all offered common stock within thirty (30) days after the Offer Notice by giving notice of their exercise of such option, or, having given notice of exercise of the option, are unable to consummate the purchase for reasons beyond the Offering Party's control within a period ending thirty (30) days after the date of the last qualifying notice of exercise, the Offering Party within one hundred eighty (180) days after the expiration of the last right of the Company and the Offeree Party to purchase such common stock, may sell or assign any remaining, common stock, on substantially the terms stated in the Offer Notice and at a price no lower than set forth in the Offer Notice. If such 180-day period has expired, the price is lower, or the other terms are different in any material respect, the Offering Party shall be obligated to re-offer the common stock in accordance with the terms of this Section 2.1. Any transfer of common stock undertaken pursuant to this Section shall be subject to the provisions of Section 2.3 (b) Option to Purchase on Certain Events: Upon either party filing for bankruptcy or other similar relief, making a general assignment for benefit of its creditors or having a petition for bankruptcy or similar relief filed against it which results in an order not dismissed within 60 days, the Company and the other party shall have an option to purchase all of the common stock owned by such party's predecessor in interest (or, in the case of the debtor in possession, owned by such party) under the procedures set forth in subsection (a) above, other than that (i) the price shall be the Fair Market Value, as determined in accordance with subsection (c) below, and (ii) if the Company does not receive an Offer Notice, the rights of the Company and the other party shall accrue upon the receipt of actual notice by the Company of the event triggering its rights hereunder. In the event that there is no Offer Notice, the Company shall send the other party a notice of its rights hereunder within 60 days after the Company receives such actual notice. The provisions of subsection (a) above shall also govern in the event that the options under this subsection (b) are not fully exercised. (c) Determination of Fair Market Value: For the purpose of this Agreement, the parties shall attempt to agree on the Fair Market Value of the common stock. If not agreed to by the parties within sixty (60) days after a request seeking an agreement as to Fair Market Value under this Agreement either by a party or by the Company, each party shall immediately name an appraiser and the two appraisers so named shall, within twenty days of the date of the response of such party, name a third appraiser (the "Third Appraiser"); provided that if a party shall fail to name its appraiser in a timely fashion, the appraiser named by the other party in a timely fashion shall be the sole appraiser. The panel of three appraisers, or the appraiser named by the single party in a timely fashion, as the case may be, shall issue a written report determining the Fair Market Value of the common stock, which report shall be issued by no later than the date sixty (60) days after the date of the response of such party. If the panel of appraisers is not unanimous in its determination of Fair Market Value, then the opinion of the Third Appraiser shall be controlling. Such determination whether made by the unanimous panel of appraisers, the Third Appraiser, or, if one of the parties shall have failed to name its appraiser in a timely fashion, the single appraiser named by a party in a timely fashion, shall constitute the Fair Market Value of the common stock and shall be binding and conclusive on the parties. The closing on the transfer of the common stock shall occur on the date 120 days after the initial request for an agreement as to Fair Market Value, unless the parties shall establish an earlier date. The price to be paid at the closing shall be the Fair Market Value of the common stock, and the sale shall be for cash. 2.2 (a) Disposition: Subject to this Article 2, neither party may sell, assign, transfer, exchange, mortgage, pledge, grant, hypothecate, or otherwise transfer ("Dispose" or "Disposition") all or a portion of the party's common stock, (i) without an opinion of counsel satisfactory to the Company that such assignment satisfies registration requirements under, or is exempt from the registration requirements of, the applicable state and federal securities laws; and (ii) unless and until the Company receives from the assignee the information and agreements that the Company may reasonably require, including but not limited to any taxpayer identification number and any agreement that may be required by an taxing jurisdiction. (b) Conditions for Transfer: In the event of the Disposition of a party's common stock, and as a condition to recognizing of the effectiveness and binding nature of any such Disposition, the other party or the Company may require the selling party and the proposed purchaser, transferee or successor-in-interest, as the case may, be to execute, acknowledge and deliver to the Company and the other party such instruments of transfer, assignment and assumption and such other certificates, representations and documents, and to perform all such other acts which the Company and the other party may deem necessary or desirable to: (i) constitute such purchaser, as transferee or successor-in- interest as such; (ii) confirm that the person desiring to acquire an interest or interests in the Company has accepted, assumed and agreed to be subject and bound by all of the terms, obligations and conditions of this Agreement, as the same may have been further amended; and (iii) assure compliance with any applicable state and federal laws including securities laws and regulations. (c) Effective Date, Indemnification: The Disposing party hereby agrees to indemnify the Company and the other party against any and all loss, damage, or expense (including, without limitations, tax liabilities or loss of tax benefits) arising directly or indirectly as a result of any transfer or purported transfer in violation of this Article 2. (d) Permitted Transfers: Common stock may be transferred (without regard to this Article 2) to those affiliates of a party with which such party is consolidated for federal income tax purposes, provided, however, that the successor-in-interest complies with Section 2.2(b). (e) Dispositions not in Compliance with this Article Void: Any attempted Disposition of common stock by either party, other than in accordance with this Article 2, shall be, and is declared to be, null and void ab initio. ARTICLE 3 POST OFFERING RIGHTS 3.1 Following the Offering and so long as (a) NU's common stock interest in FiveCom is at least 10% of the outstanding common stock of FiveCom, fully diluted, and (b) the aggregate common stock interest of NU and CMP is at least 33 1/3% of the outstanding common stock of FiveCom, fully diluted (the first date when either such circumstance shall not exist being hereinafter called the "Release Date"), each party agrees that, without the agreement and consent of the other party, it will not permit FiveCom, nor any of its respective subsidiaries, including, respectively, MaineCom Services and Mode 1, to take any action the effect of which would be to allow or cause FiveCom to take any of the actions specified in Sections 1.1(b) and (h) above. 3.2 Following the Release Date, this Agreement shall be of no further force and effect. ARTICLE 4 MISCELLANEOUS 4.1 Limitation of Liability. No shareholder or trustee of NU or shareholder or director of CMP shall be held to any liability whatever for the payment of any sum of money or for damages or otherwise under this Agreement, and this Agreement shall not be enforceable against any such trustee or director in their or his or her individual capacities or capacity and this Agreement shall be enforceable against the trustees of NU and the directors of CMP only as such, and every person, firm, association, trust or corporation having any claim or demand arising under this Agreement and relating to NU or CMP, their respective shareholders, trustees or directors shall look solely to the trust estate of NU or the assets of CMP for the payment or satisfaction thereof. 4.2 Governing Law. This Agreement shall be governed by the laws of the Commonwealth of Massachusetts. 4.3 Counterparts. This Agreement may be executed by the parties in one or more counterparts, all of which, taken together, constitute one Agreement. IN WITNESS WHEREOF, we have hereunto set our hand on the date set forth beside our names. Dated: May 28, 1998 CENTRAL MAINE POWER COMPANY By: /s/David Marsh___________________ Its: Chief Financial Officer NORTHEAST UTILITIES By: _/s/_John H. Forsgren Its: Executive Vice President and Chief Financial Officer EX-99.2 3 0003.txt FIRST AMENDMENT TO NEON STOCKHOLDERS' AGREEMENT Exhibit C. FIRST AMENDMENT TO NORTHEAST OPTIC NETWORK, INC. PRINCIPAL STOCKHOLDERS AGREEMENT This First Amendment, dated as of October 19, 2000 ("Amendment No. 1"), to the FiveCom, Inc. Principal Stockholders Agreement (the "Agreement"), dated as of May 28, 1998, by and between Central Maine Power Company, a Maine corporation and wholly owned subsidiary of CMP Group, Inc. ("CMP"), and Northeast Utilities, a Massachusetts business trust ("NU"). This First Amendment is by and among CMP, NU and New England Business Trust, a Massachusetts business trust and an indirect wholly owned subsidiary of CMP ("NEBT"), and Mode 1 Communications, Inc., an indirect wholly owned subsidiary of NU ("Mode 1" and together with NEBT, the "Stockholders" and each a "Stockholder"). All capitalized terms used herein but not defined shall have the respective meanings ascribed to them in the Agreement. W I T N E S S E T H: WHEREAS, CMP, MaineCom Services, a wholly owned subsidiary of CMP, NEBT, NU and NorthEast Optic Network, Inc. (previously known as FiveCom, Inc. and now known as NEON Optica, Inc.) (hereinafter, "NEON") are parties to a Memorandum of Understanding dated as of March 7, 2000 (the "MOU"); WHEREAS, pursuant to an agreement and plan of merger, in September 2000, NEON became a wholly-owned subsidiary of NEON Communications, Inc. (the "Company") and all shares of Common Stock of NEON were converted into and became shares of common stock of the Company, and in connection with such merger; WHEREAS, pursuant to paragraphs 5 and 6 of the MOU, CMP and NU agreed to amend the Agreement to add NEBT as a party and to provide that each of NEBT and NU shall be permitted to sell its shares of common stock, $.01 par value per share, of the Company (the "common stock") pursuant to Rule 144 of the Securities Act of 1933, as amended (the "Act"), without complying with the rights of first offer contained in Article 2 of the Agreement and to provide for voting obligations of the parties with respect to the election of directors to the Board of Directors of the Company (the "Board"); and WHEREAS, CMP and NU desire to amend the Agreement to also add Mode 1 as a party and as required by the MOU and as more fully set forth herein. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. Each of NEBT and Mode 1 shall be added as a party to the Agreement. 2. Section 2.2(d) of the Agreement is hereby deleted in its entirety and replaced by the following new Section 2.2(d): (d) Permitted Transfers: Common stock may be transferred without regard to this Article 2: (i) to those affiliates of a party with which such party is consolidated for federal income tax provisions, provided, however, that the successor-in-interest complies with Section 2.2(b); and (ii) pursuant to Rule 144 of rules and regulations promulgated under the Securities Act of 1933, as amended, or a successor provision thereto. 3. Article 4 shall be renumbered Article 5 and Sections 4.1, 4.2 and 4.3 shall be renumbered 5.1, 5.2 and 5.3, respectively. 4. The following new Article 4 shall be added to the Agreement: ARTICLE 4 VOTING OF SHARES 4.1 Subject to Section 4.4 below, in any and all elections of directors to the Board (whether at a meeting or by written consent in lieu of a meeting), each of the Stockholders shall vote or cause to be voted all Shares (as defined in Section 4.3 below) owned by it, or over which it has voting control, and otherwise use its respective best efforts ("Vote"), so as to fix the number of directors of the Board at nine (it being understood that one board seat is currently vacant and is anticipated to be filled by the next chief executive officer of the Company, when one is hired) and to elect (i) two members designated by NU, initially John H. Forsgren and Gary D. Simon, and (ii) two members designated by NEBT, initially F. Michael McClain and Michael I. German; provided, however, that the Stockholders shall have no obligation to elect any designee whom the Board, in its reasonable discretion, has deemed an unacceptable candidate for election. 4.2 No Stockholder shall Vote to remove any director designated by the other Stockholder, except for bad faith or willful misconduct with respect to the business affairs of the Company on the part of such director. 4.3 "Shares" shall mean and include any and all shares of common stock and/or shares of any other class of the capital stock of the Company, by whatever name called, which carry voting rights (including voting rights which arise by reason of default) and shall include any such shares now owned or subsequently acquired by a Stockholder, or any of its respective affiliates, as such term is defined in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended ("Affiliates"), however acquired, including, without limitation, shares acquired as a result of any stock splits, stock dividends or recapitalizations. 4.4 In the event that the number of Shares held by: (a) NEBT falls below 2,701,629, then NU shall only be obligated to vote its Shares for one (1) nominee designated by NEBT or its affiliates; (b) NEBT falls below 1,000,672, then NU shall not be obligated to vote any of its Shares for a nominee designated by NEBT or its affiliates; (c) NU falls below 2,086,732, then NEBT shall only be obligated to vote its Shares for one (1) nominee designated by NU or its affiliates; and (d) NU falls below 772,917, then NEBT shall not be obligated to vote any of its Shares for a nominee designated by NU or its affiliates; provided, however, that the number of Shares referred to in (a) through (d) shall be adjusted to reflect any stock splits, recapitalizations or similar changes in the number of Shares outstanding. 5. Except as amended in this Amendment No. 1, all other provisions of the Agreement remain in full force and effect. 6. This Amendment No.1 may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 CENTRAL MAINE POWER COMPANY By: _/s/ Sara J. Burns_________________ Name: Sera J. Burns Title: President NEW ENGLAND BUSINESS TRUST By: _/s/ Robert D. Kump__________________ Name: Robert D. Kump Title: Treasurer NORTHEAST UTILITIES By: _/s/ John F. Forsgren______________ Name: John F. Forsgren Title: Executive Vice President and Chief Financial Officer MODE 1 COMMUNICATIONS, INC. By: _/s/ David R. McHale____________ Name: David R. McHale Title: Vice President and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----