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Exhibit 10.7

SETTLEMENT AGREEMENT

        This Settlement Agreement (this "Agreement") is entered into as of
March 6, 2003 by and among Cogent Communications Group, Inc., a Delaware
corporation (the "Company"), Allied Riser Communications Corporation, a Delaware
corporation ("Allied Riser"), and the several noteholders named in the attached
Schedule I (each a "Noteholder" and collectively the "Noteholders").

W I T N E S S E T H:

        WHEREAS, the Noteholders hold in the aggregate $106,789,000 face value
of the 7.5% Convertible Subordinated Notes Due 2007 issued by Allied Riser (the
"Notes") pursuant to a certain Indenture, dated as of June 28, 2000, between
Allied Riser and Wilmington Trust Company (the "Indenture"), as supplemented
pursuant to a certain First Supplemental Indenture, dated as of February 4, 2002
(the "Supplemental Indenture");

        WHEREAS, Allied Riser is the wholly-owned subsidiary of the Company as
the result of a merger consummated February 4, 2002 pursuant to which the
Company became co-obligor with respect to certain obligations related to the
Notes under the Indenture and the Supplemental Indenture;

        WHEREAS, certain of the Noteholders are plaintiffs in the action against
Allied Riser and certain of its former directors styled as Angelo, Gordon & Co.,
L.P., JMG Capital Partners, LLC, Sagamore Hill Hub Fund, LTD., JMG Triton
Offshore Fund, LTD., Peninsula Capital Advisors, LLC, Guardfish LLC and Anda
Partnership v. Allied Riser Communications Corporation, a Delaware corporation,
Gerald K. Dinsmore, R. David Spreng, Donald Lynch, and Blair P. Whitaker
(Messrs. Dinsmore, Spreng, Lynch and Whitaker collectively, the "Allied Riser
Directors"), (C.A. No. 19298), in the Court of Chancery of the State of Delaware
in and for New Castle County (the "Noteholder Litigation");

        WHEREAS, certain of the Noteholders filed an involuntary petition
against Allied Riser in the Bankruptcy Court for the Northern District of Texas,
Dallas Division (Case No. 02-32607-SAF-7)(the "Bankruptcy Litigation");

        WHEREAS, pursuant to a letter agreement dated as of January 15, 2003
between the Noteholders, Allied Riser and the Company (the "Letter Agreement"),
the Noteholders have expressed their intention to (a) dismiss with prejudice the
Noteholder Litigation and to release all claims against Allied Riser, the
Company and the Allied Riser Directors in exchange for a cash payment by Allied
Riser, and the release of all claims against the Noteholders by the Company,
Allied Riser and the Allied Riser Directors on the terms and conditions set
forth in this Agreement and the dismissal with prejudice of certain
counterclaims asserted against certain of the Noteholders party to the
Noteholder Litigation by Allied Riser and the Allied Riser Directors and
(b) surrender to Allied Riser 100% of the Notes held by such Noteholders in
exchange for a cash payment by Allied Riser and the delivery by Allied Riser to
the Noteholders of certain preferred stock of the Company, free and clear of any
lien, pledge, claim, security interest, encumbrance or charge of any kind (the
"Note Exchange") on the terms and subject to the

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conditions set forth in an exchange agreement of equal date herewith (the
"Exchange Agreement").

        NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained in this Agreement, the parties agree as follows:

ARTICLE I

SETTLEMENT

        Section 1.1.    Settlement and General Release.    On the basis of the
representations, warranties, covenants and agreements contained herein and
subject to the terms and conditions of this Agreement, on or prior to the
Closing (as defined herein):

        (a)  The Noteholders shall cause the Noteholder Litigation to be
dismissed with prejudice by filing with the Court of Chancery of the State of
Delaware in and for New Castle County the stipulation of dismissal of the
Noteholder Litigation in substantially the form attached hereto as Exhibit A
(the "Stipulation of Dismissal"), and shall cause the escrow agent under the
Escrow Agreement (as defined below) to deliver to the Company a mutual general
release executed by each of the Noteholders in the form attached hereto as
Exhibit B (the "General Release");

        (b)  Allied Riser shall cause the escrow agent under the Escrow
Agreement (as defined below) to deliver to the Noteholder Representative (as
defined in Section 7.2) (i) cash equal to the total amount set forth opposite
the names of each of the Noteholders under the heading "Settlement Payment" on
Schedule I (the "Settlement Payment"), and (ii) the General Release executed by
the Company and Allied Riser;

        (c)  Allied Riser and the Company shall cause the escrow agent under the
Escrow Agreement (as defined below) to deliver to the Noteholder Representative
the General Release executed by each of the Allied Riser Directors; and

        (d)  Allied Riser and the Allied Riser Directors shall dismiss with
prejudice certain counterclaims asserted against the Noteholders party to the
Noteholder Litigation by Allied Riser and the Allied Riser Directors.

        This transaction is referred to herein as the "Settlement."

        Section 1.2.    Closing.    The closing of the Settlement (the
"Closing") shall be consummated simultaneously with the closing of the Note
Exchange pursuant to the Exchange Agreement (the actual day on which the Closing
occurs being hereinafter referred to as the "Closing Date").

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND ALLIED RISER

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        As an inducement to the Noteholders to enter into this Agreement and to
consummate the transactions contemplated hereby, the Company and Allied Riser
represents and warrants to, and covenants with, the Noteholders as follows:

        Section 2.1.    Due Organization and Authorization.    Each of the
Company and Allied Riser is duly organized, validly existing and in good
standing under the laws of the State of Delaware. Each of the Company and Allied
Riser has all requisite power and authority to execute, deliver and perform its
respective obligations under this Agreement and all of the other agreements and
instruments to be executed and delivered by the Company pursuant hereto
(collectively, the "Company Ancillary Agreements"), and this Agreement has been,
and when delivered in accordance with the terms hereof the Company Ancillary
Agreements will be, duly authorized and validly executed and delivered by each
of the Company and Allied Riser as applicable, and this Agreement constitutes,
and when delivered in accordance with the terms hereof each Company Ancillary
Agreement will constitute, the valid and binding agreement of each of the
Company and Allied Riser, as applicable, enforceable against each in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors' and contracting parties' rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

        Section 2.2.    Non-Contravention.    The execution and delivery of this
Agreement by the Company and by Allied Riser and the consummation of the
transactions contemplated hereby will not conflict with or constitute a
violation of, or default (with the passage of time or otherwise) under, any
material agreement or instrument to which the Company or Allied Riser is a party
or by which either is bound or the certificate of incorporation or the by-laws
of the Company or Allied Riser, nor result in the creation or imposition of any
lien, encumbrance, claim, security interest or restriction whatsoever upon any
of the material properties or assets of the Company or Allied Riser or an
acceleration of indebtedness pursuant to any obligation, agreement or condition
contained in any material bond, debenture, note or any other evidence of
indebtedness or any material indenture, mortgage, deed of trust or any other
agreement or instrument to which the Company or Allied Riser is a party or by
which the Company or Allied Riser is bound or to which any of the property or
assets of the Company or Allied Riser is subject, nor conflict with, or result
in a violation of, any material law, administrative regulation, ordinance or
order of any court or governmental agency, arbitration panel or authority
applicable to the Company or Allied Riser. No consent, approval, authorization
or other order of, or registration, qualification or filing with, any regulatory
body, administrative agency, or other governmental body in the United States,
other than with respect to "blue sky" laws, is required for the valid issuance
and sale of the Series D Preferred Convertible Shares and Series E Preferred
Convertible Shares of the Company (collectively the "Shares") to be issued to
the Noteholders pursuant to this Agreement or other Company or Noteholder
Ancillary Agreements, as the case may be (other than such as have been made or
obtained or will be made or obtained prior to the Closing).

        Section 2.3.    No Brokers.    The Company and Allied Riser each
represent that there are no brokers or finders entitled to compensation in
connection with the transactions contemplated hereby.

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ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE NOTEHOLDERS

        As an inducement to each of the Company and Allied Riser to enter into
this Agreement and to consummate the transactions contemplated hereby, each
Noteholder severally and not jointly hereby represents and warrants to, and
covenants with, each of the Company and Allied Riser as follows:

        Section 3.1.    Due Organization and Authorization.    The Noteholder,
if an entity, is duly organized, validly existing and in good standing under the
laws of the state of its organization. The Noteholder has all requisite power
and authority to execute, deliver and perform its obligations under this
Agreement and all of the other agreements and instruments to be executed and
delivered by such Noteholder pursuant hereto (collectively, the "Noteholder
Ancillary Agreements"), and this Agreement has been, and when delivered in
accordance with the terms hereof the Noteholder Ancillary Agreements will be,
duly authorized and validly executed and delivered by such Noteholder and this
Agreement constitutes, and when delivered in accordance with the terms hereof
each Noteholder Ancillary Agreement will constitute, the valid and binding
agreement of such Noteholder enforceable against such Noteholder in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors' and contracting parties' rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

        Section 3.2.    Non-Contravention.    The execution and delivery of this
Agreement by the Noteholder and the consummation of the transactions
contemplated hereby will not conflict with or constitute a violation of, or
default (with the passage of time or otherwise) under, any material agreement or
instrument to which such Noteholder is a party or by which such Noteholder is
bound, or the certificate of incorporation, by-laws or other organizational
documents of such Noteholder, nor conflict with, or result in a violation of,
any law, administrative regulation, ordinance or order of any court or
governmental agency, arbitration panel or authority applicable to such
Noteholder.

        Section 3.3.    Additional Representations.    Each Noteholder further
represents and warrants to and covenants with the Company that:

        (a)  there is no plaintiff in the Noteholder Litigation that is not a
party to this Agreement.

        (b)  as of the date of this Agreement, such Noteholder is not aware of
any event, that, due to any fiduciary or similar duty to any other person, would
prevent it from taking any action required of it under this Agreement.

        Section 3.4.    No Brokers.    Each Noteholder represents that there are
no brokers or finders entitled to compensation in connection with the
transactions contemplated hereby.

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ARTICLE IV

COVENANTS

        Each of the parties hereto hereby agrees and covenants, subject to the
terms and conditions of, and in accordance with, the Escrow Agreement and each
of the Company Ancillary Agreements and the Noteholder Ancillary Agreements,
that:

        Section 4.1.    Covenants of the Noteholders.    The Noteholders shall
(i) cause the Noteholder Litigation to be dismissed with prejudice by filing
with the Court of Chancery of the State of Delaware in and for New Castle County
the Stipulation of Dismissal, (ii) cause to be surrendered to Allied Riser, in
exchange for the Settlement Payment and the Shares, all of the issued and
outstanding Notes held by the Noteholders, and (iii) execute and cause to be
delivered to the Company, Allied Riser and the Allied Riser Directors, in each
case in accordance with the terms of the Escrow Agreement, the General Release.

        Section 4.2.    Covenants of Allied Riser.    Allied Riser shall (i) pay
or cause to be paid in cash to the Noteholders the Settlement Payment,
(ii) shall execute and cause to be delivered to the Noteholders the General
Release and (iii) shall cause to be delivered to the Noteholders duly executed
share certificates evidencing the duly authorized, validly issued, fully paid
and non-assesable Shares, in each case in accordance with the terms of the
Escrow Agreement.

        Section 4.3.    Covenants of the Company.    The Company shall
(i) execute and cause to be delivered to the Noteholders the General Release,
and (ii) shall deliver to Allied Riser upon the approval of the Company's Third
Amended and Restated Certificate of Incorporation, duly executed share
certificates evidencing the duly authorized, validly issued, fully paid and
non-assesable Shares, in each case in accordance with the terms of the Escrow
Agreement.

        Section 4.4.    Escrow.    Immediately upon the execution of this
Agreement and the Exchange Agreement, the Company, Allied Riser, the Noteholders
and a mutually acceptable escrow agent shall enter into the escrow agreement
attached as Exhibit C to the Exchange Agreement (the "Escrow Agreement"),
pursuant to which, on the date hereof, (i) Allied Riser will deliver into escrow
the Settlement Payment and the General Release executed by Allied Riser and the
Allied Riser Directors, (ii) the Company will deliver into escrow the General
Release executed by the Company, and (iii) the Noteholders will deliver into
escrow a copy of the General Release executed by each Noteholder.

        Section 4.5.    Additional Covenant.    The Company, Allied Riser and
each Noteholder agree and covenant to use their best efforts to cause the
consummation of the transactions contemplated by this Agreement. The Company,
Allied Riser and each Noteholder agree and covenant not to take any action that
is inconsistent with their obligations under this Agreement in any material
respect that could reasonably be expected to hinder or delay the consummation of
this transactions contemplated by this Agreement. Each Noteholder agrees and
covenants that during the term of this Agreement, such Noteholder will (a) not
take any action under the Indenture, or instruct the trustee under the Indenture
(the "Trustee") to take any action that is inconsistent with the intent or terms
and conditions of the Exchange Agreement or the

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Settlement Agreement and, (b) if the Trustee takes or threatens any such action,
direct or cause the Trustee to be directed not to take such action to the extent
authorized by the Indenture or Supplemental Indenture.

        This transaction is referred to herein as the "Settlement".

ARTICLE V

CONDITIONS PRECEDENT

        Section 5.1.    Conditions to Obligations of the Company.    The
obligation of the Company and Allied Riser to consummate the Closing of the
Settlement on the Closing Date is subject to the satisfaction or waiver, on or
before the Closing Date, of the following conditions:

        (a)  The representations and warranties contained in Article III shall
be true, complete and correct on and as of the Closing Date with the same effect
as though such representations and warranties had been made on and as of such
date, and an authorized representative of each Noteholder shall have certified
to such effect to the Company in writing.

        (b)  Each Noteholder and the Noteholder Representative shall have
performed and complied with all agreements contained herein required to be
performed or complied with by it prior to or at the Closing Date, and an
authorized representative of each shall have certified to the Company in writing
to such effect.

        (c)  All actions required to be taken by the Noteholders pursuant to the
Exchange Agreement shall have been taken.

        Section 5.2.    Conditions to Obligations of the Noteholders.    The
obligation of each Noteholder to consummate the Closing of the Settlement on the
Closing Date is subject to the satisfaction, on or before the Closing Date, of
the following conditions:

        (a)  The representations and warranties contained in Article II shall be
true, complete and correct on and as of the Closing Date with the same effect as
though such representations and warranties had been made on and as of such date,
and the Chief Executive Officer and Chief Financial Officer of the Company shall
have certified to such effect to the Noteholders in writing.

        (b)  The Company and Allied Riser each shall have performed and complied
with all agreements contained herein required to be performed or complied with
by it prior to or at the Closing Date, and the Chief Executive Officer and Chief
Financial Officer of the Company shall have certified to the Purchasers in
writing to such effect.

        (c)  All actions required to be taken by each of the Company and Allied
Riser pursuant to the Exchange Agreement shall have been taken.

ARTICLE VI

TERMINATION

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        Section 6.1.    Termination.    This Agreement will terminate and all of
the obligations hereunder of the Company and the Noteholders will be of no
further force or effect upon the earlier of:

        (a)  the mutual agreement between the Company and the holders of at
least two-thirds of the aggregate outstanding face value of the Notes to be
exchanged pursuant to this Agreement;

        (b)  the filing by the Company of a voluntary bankruptcy petition, or
the filing of an involuntary bankruptcy petition by creditors of the Company,
prior to the Closing;

        (c)  the vote of Noteholders holding at least two-thirds in aggregate of
the principal amount of the Notes to be exchanged pursuant to this Agreement if
the Closing has not occurred within 45 days after the date hereof; or

        (d)  the termination of the Exchange Agreement.

ARTICLE VII

GENERAL PROVISIONS

        Section 7.1.    Amendments.    This Agreement may not be amended or
modified, and no provisions hereof may be waived, without the prior written
consent of the Company and the holders of at least two-thirds of the aggregate
outstanding face value of the Notes to be exchanged pursuant to this Agreement.

        Section 7.2.    Noteholder Representative.    The Noteholders have
appointed Gary Wolfe the "Noteholder Representative" under this Agreement.

        Section 7.3.    Notices.    Any notice, request, claim, demand, waiver,
consent, approval or other communication which is required or permitted
hereunder shall be in writing and shall be deemed given if delivered personally,
by facsimile transmission with receipt of delivery (one business day after
confirmation in the case of transmissions to non-U.S. residents), or sent by
registered or certified mail, postage prepaid, return receipt requested, or by
internationally recognized overnight courier service (two business days after
deposit with such overnight courier service in the case of deliveries to
non-U.S. residents), as follows: if to the Company or Allied Riser, to Cogent
Communications Group, Inc. 1015 31st Street, N.W., Suite 330, Washington, DC
20007, Attn: David Schaeffer, fax number (202) 338-8798, and if to the
Noteholder Representative, to Gary J. Wolfe, Esq., Seward & Kissel LLP, One
Battery Park Plaza, New York, NY 10004, fax number (212) 480-842.

        Section 7.4.    Expenses.    Except as provided in the Exchange
Agreement, each party hereto will pay its own expenses in connection with the
transactions contemplated hereby, whether or not such transactions shall be
consummated.

        Section 7.5.    Assignment.    The rights and obligations of each of the
Noteholders under this Agreement shall not be assignable or delegable without
the written consent of the Company. The rights and obligations of the Company
and Allied Riser under this Agreement

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shall not be assignable or delegable without the written consent of the holders
of a majority of the aggregate outstanding face value of the Notes to be
exchanged pursuant to this Agreement.

        Section 7.6.    Consent to Jurisdiction and Service.    The Company,
Allied Riser, and each of the Noteholders party hereto hereby absolutely and
irrevocably consents and submits to the jurisdiction of the Courts in the State
of New York and of any Federal court located in the State of New York in
connection with any actions or proceedings brought against any party hereto
arising out of or relating to the Settlement. In any such action or proceeding,
each party hereto hereby absolutely and irrevocably (i) waives any objection to
jurisdiction or venue, (ii) waives personal service or summons, complaint,
declaration or other process, and (iii) agrees that the service thereof may be
made by certified or registered first-class mail directed to such party, as the
case may be, at their respective addresses in accordance with Section 7.3
hereof;

        Section 7.7.    Survival of Representations and Warranties.    All
representations and warranties made in this Agreement or any other instrument or
document delivered in connection herewith or therewith, shall survive the
execution and delivery hereof or thereof.

        Section 7.8.    Prior Agreements.    This Agreement and the Exchange
Agreement constitute the entire agreement between the parties and supersede any
prior understandings or agreements concerning the Note Exchange and the
Settlement.

        Section 7.9.    Governing Law.    This Agreement shall be construed and
enforced in accordance with and governed by the laws of the State of New York
without regard to its conflict of law principles.

        Section 7.10.    Headings.    Section and subsection headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

        Section 7.11.    Counterparts.    This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument, and any of the parties hereto may execute this Agreement by
signing any such counterpart.

        Section 7.12.    Further Assurances.    From and after the date of this
Agreement, upon the request of any Noteholder, the Company or Allied Riser, the
Noteholders, the Company or Allied Riser, as the case may be, shall execute and
deliver such instruments, documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the
intent and purposes of this Agreement.

        Section 7.13.    Severability.    The provisions of this Agreement and
the terms of the Shares are severable and, if any court of competent
jurisdiction shall determine that any one or more of the provisions or part of a
provision contained in this Agreement or the Share shall, for any reason, be
held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision or part of a
provision of this Agreement or the terms of the Shares; but this Agreement and
the terms of the Shares shall be reformed and construed as if such invalid or
illegal or unenforceable provision, or part of a provision, had never been
contained herein, and such provisions or part reformed so that it would be
valid, legal and enforceable to the maximum extent possible.

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        IN WITNESS WHEREOF, the parties hereto have caused this SETTLEMENT
AGREEMENT to be executed as of the date first above written.

ALLIED RISER COMMUNICATIONS CORPORATION    
/s/  DAVE SCHAEFFER      

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By: Dave Schaeffer
Title: President
 
 
COGENT COMMUNICATIONS GROUP, INC.
 
 
/s/  DAVE SCHAEFFER      

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By: Dave Schaeffer
Title: President
 
 
ANDA PARTNERSHIP
By it Partners
 
 
THE ANN ONLY TRUST
 
 
/s/  MARK SLEZAK      

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By: Mark Slezak
Title: Co-Trustee
 
 
THE ANN AND DESCENDANTS TRUST
 
 
/s/  MARK SLEZAK      

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By: Mark Slezak
Title: Co-Trustee
 
 

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CRT CAPITAL GROUP, LLC
 
 
/s/  MICHAEL VAUGHN      

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By: C. Michael Vaughn
Title: Member
 
 
GUARDFISH, LLC
 
 
/s/  JOHN C. KOPCHIK      

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By: John C. Kopchik
Title: Principal of its Manager, Providence
          Asset Management LLC
 
 
HBV MASTER REDISCOVERY OPPORTUNITIES FUND, L.P.
 
 
/s/  GEORGE J. KONOMOS      

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By: George J. Konomos
Title: Portfolio Manager
 
 
JMG CAPITAL PARTNERS, L.P.
 
 
/s/  JONATHAN GLASER      

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By: Jonathan Glaser
Title: Managing Member
 
 
JMG TRITON OFFSHORE FUND, LTD.
 
 
/s/  JONATHAN GLASER      

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By: Jonathan Glaser
Title: Managing Member
 
 

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MARKETUS VALUE PARTNERS, L.P.
 
 
/s/  EDMUND A. HAJIM      

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By: Edmund A. Hajim
Title: Managing Member of its General Partner,
          Marketus, L.L.C.
 
 
LA POLICE AND FIRE PENSION FUND
By its Manager,
WR HUFF & CO.
 
 
/s/  MICHAEL J. MCGUINESS      

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By: Michael J. McGuiness
Title: Portfolio Manager
 
 
PENINSULA INVESTMENT PARTNERS, L.P.
 
 
/s/  R. TED WESCHLER      

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By: R. Ted Weschler
Title: Managing Member of its Investment
          Advisor and General Partner
 
 
SAGAMORE HILL HUB FUND LTD.
 
 
/s/  MARK MAY      

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By: Mark May
Title:
 
 

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LC CAPITAL MASTER FUND, LTD.
 
 
/s/  STEVE LAMPE      

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By: Steve Lampe
Title: Managing Member
 
 

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Schedule 1.1

Noteholder

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  Allied Riser Notes

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  Settlement Payment

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Anda Partnership   $ 19,999,000.00   $ 913,954.06
CRT Capital Group, LLC
 
$
18,875,000.00
 
$
862,587.27
Guardfish, LLC
 
$
10,999,000.00
 
$
502,654.17
HVB Master Rediscovery Opportunities Fund, L.P.
 
$
6,117,000.00
 
$
279,546.83
JMG Capital Partners, L.P.
 
$
900,000.00
 
$
41,129.99
JMG Triton Offshore Fund, Ltd.
 
$
3,050,000.00
 
$
139,384.96
Marketus Value Partners, L.P.
 
$
1,000,000.00
 
$
45,699.99
LA Police and Fire Pension Fund
 
$
8,700,000.00
 
$
397,589,89
Peninsula Investment Partners, L.P.
 
$
22,099,000.00
 
$
1,009,924.03
Sagamore Hill Hub Fund Ltd.
 
$
15,050,000.00
 
$
687,784.82
Total
 
$
106,789,000.00
 
$
4,880,256.00

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Exhibit 10.7

SETTLEMENT AGREEMENT
ARTICLE I SETTLEMENT
ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND ALLIED RISER
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE NOTEHOLDERS
ARTICLE IV COVENANTS
ARTICLE V CONDITIONS PRECEDENT
ARTICLE VI TERMINATION
ARTICLE VII GENERAL PROVISIONS
Schedule 1.1