Document:

EXHIBIT 10.1

                          FIBERNET TELECOM GROUP, INC.

                            COMMON STOCK AND WARRANT

                               PURCHASE AGREEMENT

                                October 30, 2002

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                                TABLE OF CONTENTS
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                                                                            Page
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1.    Purchase and Sale of Stock.............................................1

      1.1.  Sale and Issuance of Common Stock and Warrants...................1
      1.2.  Closing..........................................................1

2.    Representations and Warranties of the Company..........................2

      2.1.  Organization, Good Standing and Qualification....................2
      2.2.  Subsidiaries.....................................................2
      2.3.  Capitalization and Voting Rights.................................2
      2.4.  Authorization....................................................3
      2.5.  Valid Issuance of Common Stock...................................3
      2.6.  No Conflict with Laws or Other Instruments; Governmental
            Consents.........................................................4
      2.7.  Offering.........................................................4
      2.8.  Returns and Complaints...........................................4
      2.9.  Litigation.......................................................4
      2.10. Intellectual Property............................................5
      2.11. Compliance with Laws and Instruments.............................5
      2.12. Environmental Matters............................................5
      2.13. Business Plan....................................................7
      2.14. Registration Rights..............................................7
      2.15. Corporate Documents..............................................7
      2.16. Title to Property and Assets.....................................7
      2.17. Financial Statements.............................................7
      2.18. Absence of Certain Changes.......................................8
      2.19. Absence of Undisclosed Liabilities...............................9
      2.20. Tax Returns, Payments and Elections..............................9
      2.21. Brokers..........................................................9
      2.22. Available Credit................................................10
      2.23. Private Placement...............................................10

3.    Representations and Warranties of the Investors.......................10

      3.1.  Purchase Entirely for Own Account...............................10
      3.2.  Disclosure of Information.......................................10
      3.3.  Investment Experience...........................................10
      3.4.  Accredited Investor.............................................10
      3.5.  Restricted Securities...........................................11
      3.6.  Further Limitations on Disposition..............................11

4.    Conditions of Investor's Obligations at Closing.......................11

      4.1.  Representations and Warranties..................................11
      4.2.  Performance; Material Adverse Change............................12
      4.3.  Compliance Certificate..........................................12
      4.4.  Qualifications..................................................12
      4.5.  Proceedings and Documents.......................................12

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      4.6.  Opinions of Company Counsel.....................................12
      4.7.  Execution and Delivery of Transaction Documents;
            Issuance of Warrants and Common Stock...........................12
      4.8.  Seventh Amendment to the Amended and Restated Credit
            Agreement and Loan Documents....................................12
      4.9.  Good Standing Certificate.......................................13
      4.10. Secretary's Certificate.........................................13
      4.11. Consents........................................................13
      4.12. Exchange of Certain Securities..................................13
      4.13. Final Credit Approval...........................................13
      4.14. Company Indebtedness............................................13
      4.15. Additional Fundraising..........................................14
      4.16. Waivers by Holders of Existing Warrants.........................14
      4.17. Material Adverse Change, Suits and Defaults.....................14

5.    Indemnification.......................................................14

      5.1.  Indemnification by the Company..................................14
      5.2.  Indemnification Procedures......................................15

6.    Miscellaneous.........................................................15

      6.1.  Survival of Representations and Warranties......................15
      6.2.  Exercise of Warrants............................................16
      6.3.  Successors......................................................16
      6.4.  Governing Law...................................................16
      6.5.  Counterparts....................................................16
      6.6.  Interpretation..................................................16
      6.7.  Notices.........................................................16
      6.8.  Finder's Fee....................................................18
      6.9.  Expenses........................................................18
      6.10. Amendments and Waivers..........................................18
      6.11. Severability....................................................18
      6.12. Aggregation of Stock............................................18
      6.13. Entire Agreement................................................18
      6.14. Publication.....................................................18
      6.15. Confidentiality.................................................19
      6.16. Exculpation Among Investors.....................................19
      6.17. Register of Securities..........................................19
      6.18. Replacement of Certificates.....................................19
      6.19. Interpretation of "Knowledge."..................................19

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                            COMMON STOCK AND WARRANT
                            ------------------------
                               PURCHASE AGREEMENT
                               ------------------

     This Common Stock and Warrant Purchase Agreement (this "Agreement") is made
as of the 30th day of October 2002, by and among FiberNet Telecom Group, Inc., a
Delaware corporation (the "Company"), and the investors listed on Schedule I
hereto (the "Investors").

     WHEREAS, the Investors wish to purchase from the Company, and the Company
wishes to sell to the Investors, upon the terms and subject to the conditions
set forth herein, an aggregate of 440,000,000 shares of the Common Stock, par
value $0.001 per share (the "Common Stock"), and warrants of the Company to
purchase an aggregate of 110,000,000 shares of Common Stock, for an aggregate
purchase price of $66,000,000;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

     1. Purchase and Sale of Stock.
        --------------------------

     1.1. Sale and Issuance of Common Stock and Warrants. Upon the terms and
subject to the conditions of this Agreement, each Investor agrees, severally and
not jointly, to purchase at the Closing (as defined below), and the Company
agrees to sell and issue to each Investor at the Closing,

     (a)  that number of shares of Common Stock set forth opposite such
          Investor's name on Schedule I hereto under the heading "Shares
          Purchased," and

     (b)  warrants, in substantially the form attached hereto as Exhibit A (the
          "Warrants"), to purchase that number of shares of Common Stock set
          forth opposite such Investor's name on Schedule I under the heading
          "Warrants"

for the aggregate purchase price set forth opposite such Investor's name under
the heading "Purchase Price" (as paid by means of the cancellation of
indebtedness indicated thereon, the "Purchase Price"). The Warrants shall have
an exercise price equal to $0.12 per share and shall be immediately exercisable.

     1.2. Closing. The purchase and sale of the Common Stock and Warrants (the
"Closing") shall take place at the offices of Latham & Watkins, 885 Third
Avenue, New York, New York 10022, at 10:00 a.m., on the business day following
the date on which all of the conditions to closing set forth in Article 4 have
been satisfied or waived or at such other time and place as the Company and the
Investors may mutually agree (the "Closing Date"). At the time of the Closing,
the Company shall deliver to each Investor certificates representing the Common
Stock and Warrants that such Investor is purchasing, as set forth on Schedule I
attached hereto, against payment of the Purchase Price therefor.

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     2. Representations and Warranties of the Company. As of the date hereof and
as of the Closing Date, the Company hereby represents and warrants to each
Investor that, except as specifically set forth in the Schedule of Exceptions
attached hereto as Schedule II (the "Schedule of Exceptions"), which exceptions
shall be deemed to be representations and warranties as if made hereunder:

     2.1. Organization, Good Standing and Qualification. The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power and
authority to carry on its business as now conducted and as presently proposed to
be conducted. The Company is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure to so qualify would have a
material adverse effect on the business, condition (financial or otherwise),
projections or results of operations of the Company and its Subsidiaries (as
defined below), taken as a whole (a "Material Adverse Effect").

     2.2. Subsidiaries. All of the subsidiaries of the Company (the
"Subsidiaries") are identified in Schedule 2.2 to the Schedule of Exceptions.
The equity interests of each of the Subsidiaries of the Company are identified
in Schedule 2.2 to the Schedule of Exceptions. Each of the Subsidiaries of the
Company identified in Schedule 2.2 to the Schedule of Exceptions is (i) a
corporation or limited liability company duly organized or formed, validly
existing and in good standing under the laws of its respective jurisdiction of
organization set forth therein, has all requisite corporate or limited liability
company power and authority to own and operate its properties and to carry on
its business as now conducted and as proposed to be conducted, and (ii) is
qualified to do business and is in good standing in every jurisdiction where its
assets are located and wherever necessary to carry out its business and
operations, except where the failure to be so qualified and in good standing
could not reasonably be expected to have a Material Adverse Effect. Schedule 2.2
to the Schedule of Exceptions completely and correctly sets forth the ownership
of each Subsidiary of the Company.

     2.3. Capitalization and Voting Rights.
          --------------------------------

     (a) As of the date hereof, the authorized capital of the Company consists
of 2,000,000,000 shares of Common Stock, 64,331,722 shares of which were issued
and outstanding as of September 30, 2002. All of the outstanding shares of
Common Stock have been duly authorized, validly issued, fully paid and are
nonassessable. Immediately after the consummation of the transactions
contemplated by the Series H Share Exchange Agreement and the Series J Share
Exchange Agreement (each as defined in Section 4.12 below), the Company will
have no issued and outstanding shares of Preferred Stock.

     (b) The Company has reserved 16,166,720 shares of Common Stock for issuance
to officers, directors, employees and consultants of the Company pursuant to its
Equity Incentive Plan and certain other stock option arrangements duly adopted
by the board of directors and approved by the stockholders of the Company (the
"Stock Plan"). Of such reserved shares of Common Stock, options to purchase
13,746,512 shares have been granted and are currently outstanding, and 2,420,208
shares remain available for issuance to officers, directors, employees and
consultants pursuant to the Stock Plan. 103,452 shares of Common Stock have been
issued pursuant to the Equity Incentive Plan.

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     (c) Except as set forth on Schedule 2.3(c) to the Schedule of Exceptions,
as of the date hereof, there are no outstanding options, warrants, rights
(including conversion or preemptive rights, rights of first refusal or similar
rights) or agreements, orally or in writing, for the purchase or acquisition
from the Company of any shares of its capital stock or other securities.

     2.4. Authorization. All corporate action on the part of the Company and the
Subsidiaries and their respective officers, directors and stockholders (or in
the case of Devnet, L.L.C., FiberNet Equal Access, L.L.C., a New York limited
liability company ("Equal Access"), and Local Fiber, L.L.C., a New York limited
liability company ("Local Fiber"), its partners and members) necessary for the
authorization, execution and delivery of this Agreement, the Warrants, the
Investor's Rights Agreement, the form of which is attached hereto as Exhibit B
(the "Rights Agreement"), the Stockholders Agreement, the form of which is
attached hereto as Exhibit C (the "Stockholders Agreement"), the Amended and
Restated Credit Agreement, dated as of February 9, 2001, as amended prior to the
date hereof and by the Agreement, Limited Waiver And Seventh Amendment, the form
of which is attached hereto as Exhibit D (collectively, the "Credit Agreement"),
and any documents to be executed in connection with the Credit Agreement (the
"Loan Documents," collectively with this Agreement, the Warrants, the Rights
Agreement, the Credit Agreement, and the Stockholders Agreement, the
"Transaction Documents"), the performance of all obligations of the Company
hereunder and thereunder, and the authorization, issuance, sale and delivery of
the Common Stock and Warrants being sold hereunder and securities issuable upon
exercise of the Warrants has been taken or will be taken prior to the Closing.
Each of the Transaction Documents constitutes or, when executed and delivered,
will constitute, the Company's valid and legally binding obligation, enforceable
against the Company in accordance with its terms, except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors' rights generally, (b) as
limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies, and (c) to the extent the indemnification
provisions contained in any of the Transaction Documents may be limited by
applicable federal or state securities laws.

     2.5. Valid Issuance of Common Stock. The Common Stock that is being
purchased by the Investors hereunder, when issued, sold and delivered in
accordance with the terms of this Agreement for the consideration expressed
herein, will be duly and validly issued, fully paid, nonassessable, free of
restrictions on transfer other than restrictions on transfer under the
Transaction Documents and under applicable state and federal securities laws
and, assuming the accuracy of each Investor's representations and warranties set
forth in Article 3 of this Agreement, such Common Stock and the Warrants will
have been issued in compliance with all applicable state and federal securities
laws. The securities issuable upon exercise of the Warrants, upon issuance in
accordance with the terms of the Warrants, will be duly and validly issued,
fully paid, nonassessable, free of restrictions on transfer other than
restrictions on transfer under the Transaction Documents and under applicable
state and federal securities laws and will have been issued in compliance with
all applicable state and federal securities laws. The Company's equity
securities outstanding as of the date of this Agreement have been issued in
compliance with all applicable state and federal securities laws.

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     2.6. No Conflict with Laws or Other Instruments; Governmental Consents. The
execution, delivery and performance by the Company and its Subsidiaries of the
Transaction Documents to which each is a party and the consummation of the
transactions contemplated by this Agreement and the other Transaction Documents:
(a) will not require from the board of directors or stockholders of the Company
or any of the Subsidiaries (or in the case of Devnet, L.L.C., Equal Access and
Local Fiber, its partners or members) any consent or approval, except such as
shall have been obtained prior to the Closing; (b) will not require any
authorization, consent, approval, license, exemption of or filing or
registration with any court or governmental department, commission, board,
bureau, agency or instrumentality of government, except such filings as may be
required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended ("HSR"), and such other consents and approvals such as shall have been
obtained or made prior to the Closing and except as could not reasonably be
expected to have a Material Adverse Effect; (c) subject to the accuracy of the
Investors' representations and warranties contained in Article 3 of this
Agreement, will not cause the Company or any of the Subsidiaries to violate or
contravene (i) any provision of law presently in effect, (ii) any rule or
regulation presently in effect of any agency or government, (iii) any order,
writ, judgment, injunction, decree, determination or award presently in effect,
or (iv) any provision of its certificate of incorporation or bylaws or
equivalent organizational documents, except, in the case of clauses (i) and
(ii), as could not reasonably be expected to have a Material Adverse Effect; (d)
will not violate or be in conflict with, result in a breach of or constitute
(with or without notice or lapse of time or both) a default under, or require
any consent, approval or authorization under, any indenture, loan or credit
agreement, note agreement, deed of trust, mortgage, security agreement or other
agreement, lease, instrument, commitment or arrangement to which the Company or
any of the Subsidiaries is a party or by which the Company or any of the
Subsidiaries or any of their respective properties, assets or rights is bound,
in each case, that is material to the Company and its Subsidiaries, taken as a
whole; (e) will not result in the creation or imposition of any lien,
encumbrance or other restriction on any of the properties, assets or rights of
the Company or the Subsidiaries (in each case, other than pursuant to the terms
of the Transaction Documents), except as would not have a Material Adverse
Effect; and (f) will not result in the revocation, impairment, forfeiture or
nonrenewal of any Permit (as defined below), except as would not have a Material
Adverse Effect.

     2.7. Offering. Subject to the truth and accuracy of each Investor's
representations set forth in Article 3 of this Agreement, the offer, sale and
issuance of the Common Stock and Warrants as contemplated by this Agreement and
the issuance of the securities issuable upon exercise of the Warrants are exempt
from the registration requirements of the Securities Act (as defined in Section
2.17), and neither the Company nor any authorized agent acting on its behalf
will take any action hereafter that would cause the loss of such exemption.

     2.8. Returns and Complaints. Except as it would not have a Material Adverse
Effect, none of the Company and its Subsidiaries has received any written
customer complaints concerning its products and/or services.

     2.9. Litigation. Except as set forth in Schedule 2.9 of the Schedule of
Exceptions, there are no actions, suits, proceedings, arbitrations or
governmental investigations at law or in equity, or before or by any arbitrator
or governmental instrumentality, domestic or

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foreign (including any environmental claims) that are, to the knowledge of the
Company, pending or threatened against or affecting the Company or any of its
Subsidiaries or any property of the Company or any of its Subsidiaries, which,
if adversely determined, could reasonably be expected to have a Material Adverse
Effect. Neither the Company nor any of its Subsidiaries (i) is in violation of
any applicable legal requirement (including environmental laws) which could
reasonably be expected to have a Material Adverse Effect or (ii) is subject to
or in default with respect to any final judgments, writs, injunctions, decrees,
rules or regulations of any court or any federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, which could reasonably be expected to have a Material
Adverse Effect.

     2.10. Intellectual Property. To the knowledge of the Company, the Company
and the Subsidiaries have obtained and hold in full force and effect the
intellectual property, free from burdensome restrictions, which is necessary for
the operation of its business as presently conducted except for that
intellectual property which the failure to own or license could not reasonably
be expected to have a Material Adverse Effect. To the knowledge of the Company,
no product, process, method, substance, part or other material presently sold or
employed by the Company or the Subsidiaries in connection with such business
infringes any intellectual property owned by any other person, except as could
not, individually and in the aggregate, reasonably be expected to have a
Material Adverse Effect. All of the material intellectual property owned or used
by the Company or the Subsidiaries as of the Closing Date is set forth in
Schedule 2.10 to the Schedule of Exceptions.

     2.11. Compliance with Laws and Instruments. None of the Company and the
Subsidiaries is in violation or default (a) in any respect of any provision of
its certificate of incorporation or bylaws or its equivalent organizational
documents, or (b) in any material respect of any instrument, judgment, order,
writ, decree, contract or agreement to which it is a party or by which it is
bound, or (c) to the best of the Company's knowledge, of any provision of any
federal or state statute, rule or regulation applicable to the Company or the
Subsidiaries, as the case may be, which could reasonably be expected to have a
Material Adverse Effect.

     2.12. Environmental Matters.
           ---------------------

     (a) The following terms shall be defined as follows:

          (i) "Environmental Laws" shall mean any and all current or future
     statutes, ordinances, orders, rules, regulations, guidance documents,
     judgments, governmental actions, or any other requirements of governmental
     authorities relating to (i) environmental matters, including those relating
     to any Hazardous Materials Activity(as defined in 2.12.(a)(ii) below), (ii)
     the generation, use, storage, transportation or disposal of hazardous
     materials, or (iii) occupational safety and health, industrial hygiene,
     land use or the protection of human, plant or animal health or welfare, in
     any manner applicable to the Company or the Subsidiaries or any Facility
     (as defined below), including the Comprehensive Environmental Response,
     Compensation, and Liability Act (42 U.S.C.ss.9601 et seq.), the Hazardous
     Materials Transportation Act (49 U.S.C.ss.1801 et seq.), the Resource
     Conservation and Recovery Act (42 U.S.C.ss.6901 et seq.), the Federal Water
     Pollution Control Act (33 U.S.C.ss.1251 et seq.), the Clean Air Act (42
     U.S.C.ss.7401 et seq.), the Toxic Substances Control Act (15 U.S.C.ss.2601

                                       5
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     et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7
     U.S.C.ss.136 et seq.), the Occupational Safety and Health Act (29
     U.S.C.ss.651 et seq.), the Oil Pollution Act (33 U.S.C.ss.2701 et seq.) and
     the Emergency Planning and Community Right-to-Know Act (42 U.S.C.ss.11001
     et seq.), each as amended or supplemented, any analogous present or future
     state or local statutes or laws, and any regulations promulgated pursuant
     to any of the foregoing.

          (ii) "Hazardous Materials Activity" (i) any chemical, material or
     substance at any time defined as or included in the definition of
     "hazardous substances," "hazardous wastes," "hazardous materials,"
     "extremely hazardous waste," "acutely hazardous waste," "radioactive
     waste," "biohazardous waste," "pollutant," "toxic pollutant,"
     "contaminant," "restricted hazardous waste," "infectious waste," "toxic
     substances," or any other term or expression intended to define, list or
     classify substances by reason of properties harmful to health, safety or
     the indoor or outdoor environment (including harmful properties such as
     ignitability, corrosivity, reactivity, carcinogenicity, toxicity,
     reproductive toxicity, "TCLP toxicity" or "EP toxicity" or words of similar
     import under any applicable Environmental Laws); (ii) any oil, petroleum,
     petroleum fraction or petroleum derived substance; (iii) any drilling
     fluids, produced waters and other wastes associated with the exploration,
     development or production of crude oil, natural gas or geothermal
     resources; (iv) any flammable substances or explosives; (v) any radioactive
     materials; (vi) any asbestos-containing materials; (vii) urea formaldehyde
     foam insulation; (viii) electrical equipment which contains any oil or
     dielectric fluid containing polychlorinated biphenyls; (ix) pesticides; and
     (x) any other chemical, material or substance, exposure to which is
     prohibited, limited or regulated by any governmental authority or which may
     or could pose a hazard to the health and safety of the owners, occupants or
     any persons in the vicinity of any Facility or to the indoor or outdoor
     environment.

          (iii) "Facilities" shall mean any and all real property (including all
     buildings, fixtures or other improvements located thereon) now, hereafter
     or heretofore owned, leased, operated or used by the Company or the
     Subsidiaries or any of their respective predecessors or affiliates.

          (iv) "Property" shall mean all real property leased or owned by the
     Company or any Subsidiary either currently or in the past, excluding Rights
     of Way.

     Except as set forth in Schedule 2.12 to the Schedule of Exceptions:

          (v) neither the Company nor the Subsidiaries nor any of their
     respective Facilities are subject to any outstanding written order, consent
     decree or settlement agreement with any person relating to (a) any
     Environmental Law or (b) any Hazardous Materials Activity;

          (vi) neither the Company nor the Subsidiaries has received any letter
     or request for information under Section 104 of the Comprehensive
     Environmental Response, Compensation, and Liability Act (42 U.S.C.ss.9604)
     or any comparable state law;

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<PAGE>

          (vii) there are and, to the Company's knowledge, have been, no
     conditions, occurrences, or Hazardous Materials Activities on any Facility
     which could reasonably be expected to form the basis of an environmental
     claim against the Company or the Subsidiaries;

          (viii) neither the Company nor the Subsidiaries nor, to the Company's
     knowledge, any predecessor of the Company or the Subsidiaries has filed any
     notice under any Environmental Law indicating past or present treatment of
     Hazardous Materials Activities at any Facility, and neither the Company's
     nor the Subsidiaries' operations involves the generation, transportation,
     treatment, storage or disposal of hazardous waste, as defined under 40
     C.F.R. Parts 260-270 or any state equivalent; and

          (ix) compliance with all current requirements pursuant to or under
     Environmental Laws could not, individually or in the aggregate, reasonably
     be expected to give rise to a Material Adverse Effect.

     Notwithstanding anything in Schedule 2.12 to the Schedule of Exceptions to
the contrary, no event or condition has occurred or is occurring with respect to
the Company or the Subsidiaries relating to any Environmental Law or any
Hazardous Materials Activity, including any matter disclosed on Schedule 2.12 to
the Schedule of Exceptions, which individually or in the aggregate has had or
could reasonably be expected to have a Material Adverse Effect.

     2.13. Business Plan. The business plan as amended, supplemented and
previously delivered to each Investor (the "Business Plan") is a true and
accurate copy of the Business Plan adopted by the Company. With respect to
projections contained in the Business Plan, the Company represents only that
such projections were prepared in good faith and that the Company reasonably
believes there is a reasonable basis for such projections.

     2.14. Registration Rights. Except as set forth on Schedule 2.14 to the
Schedule of Exceptions, the Company has not granted or agreed to grant any
registration rights, including piggyback rights, to any person or entity.

     2.15. Corporate Documents. Except for amendments necessary to satisfy
representations and warranties or conditions contained herein (the forms of
which amendments have been approved by the Investors), the certificate of
incorporation and the bylaws of the Company are in the form previously provided
to special counsel for the Investors.

     2.16. Title to Property and Assets. Each of the Company and the
Subsidiaries has (i) good marketable and insurable fee simple title to (in the
case of fee interests in real property), (ii) valid leasehold interests in (in
the case of leasehold interests in real or personal property), or (iii) good
title to (in the case of all other personal property), all of their respective
material properties and assets reflected in the financial statements referred to
in Section 2.17 except for assets disposed of since the date of such financial
statements in the ordinary course of business. Except as permitted by this
Agreement and set forth on Schedule 2.16 to the Schedule of Exceptions, all such
properties and assets are held free and clear of liens.

     2.17. Financial Statements. The Company has timely filed all forms,
statements and documents (the "SEC Documents") required to be filed by it with
the Securities

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and Exchange Commission (the "SEC") and The Nasdaq SmallCap Market since
September 30, 2001. All documents required to be filed as exhibits to the SEC
Documents have been so filed, and all material contracts so filed as exhibits
are in full force and effect, except those which have expired in accordance with
their terms, and none of the Company and its Subsidiaries is in material default
thereunder. As of their respective filing dates, the SEC Documents complied in
all material respects with the requirements of the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder
(collectively, the "Exchange Act"), and the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder (collectively, the
"Securities Act"). The financial statements of the Company, including the notes
thereto, included in the SEC Documents (the "Company Financial Statements")
complied as to form and substance in all material respects with applicable
accounting requirements and with the published rules and regulations of the SEC
with respect thereto as of their respective dates, and were prepared in
accordance with United States generally accepted accounting principles ("GAAP")
applied on a basis consistent throughout the periods indicated and consistent
with each other (except as may be indicated in the notes thereto or, in the case
of unaudited statements included in Quarterly Reports on Form 10-Q, as permitted
by Form 10-Q of the SEC). The Company Financial Statements fairly present in all
material respects the consolidated financial condition and operating results of
Company and its Subsidiaries at the dates and during the periods indicated
therein (subject, in the case of unaudited statements, to normal, recurring
year-end adjustments). Except as disclosed in the Company's periodic reports
filed with the SEC, there has been no change in Company accounting policies
since September 30, 2001. Except as set forth in the Company Financial
Statements, the Company and its Subsidiaries have no material liabilities,
contingent or otherwise, other than (a) liabilities incurred in the ordinary
course of business subsequent to September 30, 2001 and (b) obligations under
contracts and commitments incurred in the ordinary course of business and not
required under GAAP to be reflected in the Company Financial Statements, which,
in both cases, individually or in the aggregate, would not have a Material
Adverse Effect. Except as disclosed in the Company Financial Statements, none of
the Company and the Subsidiaries is a guarantor or indemnitor of any
indebtedness of any other person, firm or corporation.

     2.18. Absence of Certain Changes. From December 31, 2001 (the "Company
Balance Sheet Date") to the date of this Agreement, the Company and its
Subsidiaries have conducted their businesses in the ordinary course consistent
with past practice and, except as disclosed in the Company's periodic reports
filed with the SEC, there has not occurred: (a) any change, event or condition
(whether or not covered by insurance) that has resulted in, or might reasonably
be expected to result in, a Material Adverse Effect; (b) any acquisition, sale
or transfer of any material asset of the Company or any of its Subsidiaries
other than in the ordinary course of business and consistent with past practice;
(c) any change in accounting methods or practices (including any change in
depreciation or amortization policies or rates) by the Company or any
revaluation by the Company of any of its or any of its Subsidiaries' assets; (d)
any declaration, setting aside, or payment of a dividend or other distribution
with respect to the shares of the Company or any Subsidiary, or any direct or
indirect redemption, purchase or other acquisition by the Company or any
Subsidiary of any of its shares of capital stock; (e) except as set forth on
Schedule 2.18 to the Schedule of Exceptions, the entering into of any material
contract or any material amendment by the Company or any Subsidiary, other than
in the ordinary course of business and as provided to the Investors; (f) any
termination of, or default under, any material contract to which Company or any
Subsidiary is a party or by which it is

                                       8
<PAGE>

bound; (g) any amendment or change to the certificate of incorporation or bylaws
or equivalent organizational documents of the Company or any Subsidiary; (h) any
material change in any compensation arrangement or agreement with any employee
of the Company or any Subsidiary; (i) any damage, destruction or loss, whether
or not covered by insurance, materially and adversely affecting the assets,
properties, financial condition, operating results, prospects or business of the
Company (as such business is presently conducted and as it is proposed to be
conducted) and its Subsidiaries, taken as a whole; (j) any waiver by the Company
or any Subsidiary of a valuable right or of a material debt owed to it; (k) any
satisfaction or discharge of any lien, claim or encumbrance, or payment of any
obligation by the Company or any Subsidiary, except in the ordinary course of
business and that is not material to the assets, properties, financial
condition, operating results or business of the Company (as such business is
presently conducted and as it is proposed to be conducted); (l) any sale,
assignment or transfer of any patents, trademarks, copyrights, trade secrets or
other intangible assets; (m) any mortgage, pledge, transfer of a security
interest in, or lien, created by the Company or any Subsidiary, with respect to
any of its material properties or assets, except for Permitted Liens (as defined
in the Credit Agreement); or (n) any agreement or commitment by the Company or
any Subsidiary to do any of the things described in this Section 2.18.

     2.19. Absence of Undisclosed Liabilities.
           ----------------------------------

     The Company has no material obligations or liabilities of any nature
(matured or unmatured, fixed or contingent) other than (a) those set forth or
adequately provided for in the consolidated balance sheet and the notes thereto
as of December 31, 2001 (the "Company Balance Sheet Date") included in the
Company Financial Statements (the "Company Balance Sheet"), (b) those incurred
in the ordinary course of business and not required to be set forth in the
Company Balance Sheet under GAAP, (c) those incurred in the ordinary course of
business since the Company Balance Sheet Date and not reasonably likely to have
a Material Adverse Effect; (d) those incurred in connection with the execution
of the Transaction Documents, and (e) those disclosed in the Company's periodic
reports filed with the SEC.

     2.20. Tax Returns, Payments and Elections. All tax returns and reports of
the Company and the Subsidiaries required to be filed by any such member have
been timely filed, and all taxes required to be paid with respect to such tax
returns to be due and payable and all material assessments, fees and other
governmental charges upon the Company and the Subsidiaries and upon their
respective properties, assets, income, businesses and franchises which are due
and payable have been paid when due and payable. The Company does not know of
any proposed tax assessment against the Company or the Subsidiaries which could
reasonably be expected to have a Material Adverse Effect that is not being
actively contested by the Company and the Subsidiaries in good faith and by
appropriate proceedings and for which reserves or other appropriate provisions,
if any, as shall be required in conformity with GAAP shall not have been made or
provided therefor.

     2.21. Brokers. None of the Company and its Subsidiaries has any contract,
arrangement or understanding with any broker, finder or similar agent with
respect to the transactions contemplated by this Agreement.

                                       9
<PAGE>

     2.22. Available Credit. After giving effect to the transactions occurring
on the Closing Date, the Company will have not less than $3.3 million in cash
and available credit.

     2.23. Private Placement. No form of general solicitation or general
advertising (as defined in Regulation D under the Securities Act) was used by
the Company or any of its respective representatives (other than the Investors,
as to whom the Company makes no representation) in connection with the offer and
sale of the Common Stock and Warrants hereby, including, but not limited to,
articles, notices or other communications published in any newspaper, magazine,
or similar medium or broadcast over television or radio, or any seminar or
meeting whose attendees have been invited by any general solicitation or general
advertising. Except as set forth on Schedule 2.23 to the Schedule of Exceptions,
no securities of the same class as the Common Stock or Warrants have been issued
and sold by the Company within the six-month period immediately prior to the
date hereof.

     3. Representations and Warranties of the Investors. Each Investor hereby
represents and warrants that:

     3.1. Purchase Entirely for Own Account. This Agreement is made by the
Company with such Investor in reliance upon such Investor's representation to
the Company, which by such Investor's execution of this Agreement such Investor
hereby confirms, that the Common Stock and Warrants to be received by such
Investor pursuant to this Agreement (collectively, the "Securities") will be
acquired for investment for such Investor's own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and that such Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same, except in compliance with
applicable federal or state securities laws. By executing this Agreement, such
Investor further represents that such Investor does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Securities.

     3.2. Disclosure of Information. Such Investor believes it has received all
the information it considers necessary and appropriate for deciding whether to
purchase the Securities. Such Investor further represents that it has had an
opportunity to ask questions and receive answers from the Company regarding the
terms and conditions of the offering of the Common Stock and Warrants and the
business, properties, prospects and financial condition of the Company. The
foregoing, however, does not limit or modify the representations and warranties
of the Company in this Agreement or the right of the Investors to rely thereon.

     3.3. Investment Experience. Such Investor can bear the economic risk of its
investment, and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of its investment
in the Common Stock and Warrants. If other than an individual, Investor also
represents that it has not been organized for the purpose of acquiring the
Securities.

     3.4. Accredited Investor. Such Investor is an "accredited investor" within
the meaning of SEC Rule 501 of Regulation D, as presently in effect.

                                       10
<PAGE>

     3.5. Restricted Securities. Such Investor understands that the Securities
it is purchasing are characterized as "restricted securities" under the federal
securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and
applicable regulations such Securities may not be resold without registration
under the Securities Act, except in certain limited circumstances. In this
connection, such Investor represents that it is familiar with SEC Rule 144, as
presently in effect, and understands the resale limitations imposed thereby and
by the Act.

     3.6. Further Limitations on Disposition. Without in any way limiting the
representations set forth above, such Investor further agrees not to make any
disposition of all or any portion of the Securities unless and until either,

     (a) there is then in effect a Registration Statement under the Securities
Act covering such proposed disposition and such disposition is made in
accordance with such Registration Statement; or

     (b) (i) such Investor shall have notified the Company of the proposed
disposition and shall have furnished the Company with a detailed statement of
the circumstances surrounding the proposed disposition, (ii) if reasonably
requested by the Company, such Investor shall have furnished the Company an
opinion of counsel, in form and substance reasonably satisfactory to the
Company, that such disposition will not require registration of such shares
under the Act, and (iii) the transferee has agreed in writing to be bound by
this Article 3, the Rights Agreement and the Stockholders Agreement (with
respect to the Stockholders Agreement and the Rights Agreement to the extent
that the transferor was so bound). It is agreed that the Company will not
require opinions of counsel pursuant to this Section 3.6(b) for transactions
made pursuant to Rule 144, provided that it receives appropriate representations
from the seller with regard to compliance with Rule 144, except in unusual
circumstances.

     Notwithstanding the provisions of paragraphs (a) and (b) above, no such
registration statement or opinion of counsel shall be required by the Company
for (i) a transfer to a Permitted Transferee (as defined in the Rights
Agreement), or (ii) a transfer by an Investor to any entity directly or
indirectly controlled by or controlling the Investor.

     4. Conditions of Investor's Obligations at Closing. The obligations of each
Investor under Section 1.1 of this Agreement are subject to the fulfillment on
or before the Closing Date of each of the following conditions, the waiver of
which shall not be effective against any Investor who does not consent in
writing thereto:

     4.1. Representations and Warranties. The representations and warranties of
the Company contained in Article 2 shall be true in all material respects
(except for such representations and warranties that are qualified by their
terms by a reference to materiality, which representation and warranties as so
qualified shall be true and correct in all respects) on and as of the Closing
Date as though such representations and warranties had been made on and as of
the Closing Date.

                                       11
<PAGE>

     4.2. Performance; Material Adverse Change. The Company shall have performed
and complied in all material respects with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by it on or before the Closing Date. There shall not have occurred
a Material Adverse Effect.

     4.3. Compliance Certificate. The Chief Executive Officer or the Chief
Financial Officer of the Company shall deliver to each Investor at the Closing a
certificate on behalf of the Company stating that the conditions specified in
Sections 4.1 and 4.2 of this Agreement have been fulfilled.

     4.4. Qualifications. All authorizations, approvals, waivers, consents or
permits, if any, of any governmental authority or regulatory body of the United
States or of any state or self regulatory agency that are required in connection
with the lawful issuance and sale of the Securities pursuant to this Agreement,
including such as may be required under the Securities Act, under state Blue Sky
laws and under HSR, shall have been duly obtained by and effective as of the
Closing.

     4.5. Proceedings and Documents. Receipt of all governmental, shareholder
and third party consents and approvals necessary in connection with the issuance
of the Common Stock and Warrants hereunder, and the related financings and other
transactions contemplated hereby and expiration of all applicable waiting
periods without any action being taken by any competent authority that could
restrain, prevent or impose any materially adverse conditions on the issuance of
the Common Stock and Warrants hereunder and no such law or regulation shall be
applicable which in the reasonable judgment of the Administrative Agent under
the Credit Agreement could reasonably be expected to have any such effect.

     4.6. Opinions of Company Counsel. Each Investor shall have received from
outside counsel for the Company, an opinion, dated as of the Closing Date, in
substantially the form attached hereto as Exhibit E.

     4.7. Execution and Delivery of Transaction Documents; Issuance of Warrants
and Common Stock. Each Investor shall have received a duly executed copy of each
Transaction Document executed by each other party thereto, and the Company shall
have issued and delivered to each Investor certificates representing the shares
of Common Stock and Warrants acquired by such Investor pursuant to this
Agreement.

     4.8. Seventh Amendment to the Amended and Restated Credit Agreement and
Loan Documents. Each of the Borrowers (as defined in the Credit Agreement) and
the Administrative Agent (as defined in the Credit Agreement) shall have entered
into the Seventh Amendment to the Amended and Restated Credit Agreement in
substantially the form attached hereto as Exhibit D (the "Seventh Amendment"),
and any Loan Documents to which it is a party, in each case, with such changes
as the authorized officers of the parties thereto shall have approved. Consents
to the approval of the Credit Agreement and the Loan Documents shall have been
executed and delivered by each lender whose consent is required under the terms
of the Credit Agreement.

                                       12
<PAGE>

     4.9. Good Standing Certificate. The Company shall have delivered to the
special counsel of the Investors Certificates of Good Standing issued by the
Secretary of State of the State of Delaware and of each state where the Company
is authorized to do business.

     4.10. Secretary's Certificate. The Company shall have delivered to the
Company a certificate issued by the Secretary of the Company certifying as to
the Company's certificate of incorporation and bylaws and resolutions and/or
consents of the Company's board of directors and stockholders.

     4.11. Consents. The Company shall have delivered to the Investors
satisfactory evidence of the consent, approval or waiver of those parties whose
consent, approval or waiver shall be necessary or advisable in connection with
the execution of any Transaction Document and the performance of obligations
thereunder, including pursuant to the contracts set forth on Schedule 2.6 to the
Schedule of Exceptions.

     4.12. Exchange of Certain Securities. The Company shall have consummated
each of the transactions contemplated by each of the Nortel Note Exchange
Agreement, the Series H Share Exchange Agreement, and the Series J Share
Exchange Agreement, including the conversion of the entire aggregate principal
amount, all accrued and unpaid interest thereon and all other amounts payable in
respect of the Promissory Note of the Company to Nortel Networks Inc.
("Nortel"), dated December 7, 2001 (the "Nortel Note"), into 9,002,040 shares of
Common Stock.

     For purposes of this Agreement, the "Nortel Note Exchange Agreement" means
the Note Exchange Agreement, dated as of October 30, 2002, by and between the
Company and SDS Merchant Fund, L.P. as in effect on the date hereof, pursuant to
which the promissory note issued by the Company to Nortel Networks Inc. on
December 7, 2001, will be surrendered to the Company in exchange for 9,002,040
shares of Common Stock; the "Series H Share Exchange Agreement" means the Share
Exchange Agreement, dated as of October 30, 2002, by and among the Company and
each of the purchasers whose names appear on the signature pages thereto,
pursuant to which the Company will issue approximately 104,581,425 shares of
Common Stock in exchange for all of its issued and outstanding shares of Series
H Preferred Stock; and the "Series J Share Exchange Agreement" means the Series
J-1 Share Exchange Agreement, dated as of October 30, 2002, by and among the
Company and each of the purchasers whose names appear on the signature pages
thereto, pursuant to which the Company will issue 60,600,000 shares of Common
Stock in exchange for all of its issued and outstanding shares of Series J-1
Preferred Stock.

     4.13. Final Credit Approval. Each of the Investors and each affiliate of
the investors shall have received final credit approval to enter into this
Agreement and the documents contemplated by this Agreement (including the Credit
Agreement and the Seventh Amendment) and perform each of its obligations under
each such agreement.

     4.14. Company Indebtedness. Giving effect to the conversion of indebtedness
contemplated by this Agreement, the Company shall have (a) no indebtedness other
than (1) $41 million of loans under the Credit Agreement, (2) $700,000 of
capital lease obligations, and (3) $2,080,000 of indebtedness outstanding under
the Promissory Note of the

                                       13
<PAGE>

Company to SDS Merchant Fund, L.P., dated March 14, 2002, and (b) only one class
of capital stock outstanding, which shall be the Common Stock.

     4.15. Additional Fundraising. The receipt by the Company of at least $3.3
million of net proceeds from the issuance of additional Common Stock and
Warrants of the same class and series as, and otherwise identical to, the Common
Stock and Warrants issued hereunder on terms satisfactory to the Investors (the
"Required Equity"). The Company shall not utilize the proceeds of the Required
Equity to fund the purchase of securities held by Nortel (including the Nortel
Note and the Company's Series H Preferred Stock).

     4.16. Waivers by Holders of Existing Warrants. The Company shall have
obtained waivers from holders of its warrants outstanding immediately prior to
the Closing Date (the "Pre-Existing Warrants") as required to provide that the
number of shares of Common Stock acquirable under the terms thereof shall not
increase as a result of the transactions contemplated by this Agreement, the
Nortel Note Exchange Agreement, the Series H Share Exchange Agreement and the
Series J Share Exchange Agreement.

     4.17. Material Adverse Change, Suits and Defaults. There shall have
occurred no material adverse change in the business, assets, condition
(financial or otherwise), operations, performance, properties, prospects or
projections of the Company since the end of the most recently ended fiscal year
for which audited financial statements have been provided to the Investors or in
the facts and information as represented to date.

     There shall exist no action, suit, investigation, litigation or proceeding
pending or threatened in any court or before any arbitrator or governmental
instrumentality that purports to materially and adversely affect the issuance of
the Common Stock or Warrants hereunder or that could reasonably be expected to
have a Material Adverse Effect.

     There shall exist no default under the Transaction Documents or event that,
with notice and/or the passage of time, could become an event of default.

     There shall exist no facts, events or circumstances which come to the
attention of any Investor, which, in its good faith determination, materially
adversely affect the business, assets, condition (financial or otherwise),
operations, performance, properties prospects and projections of the Company.

     5. Indemnification.
        ---------------

     5.1. Indemnification by the Company. Subject to the provisions of this
Article 5, the Company agrees to indemnify the Investors and their respective
officers, partners, employees, agents or representatives (collectively,
"Investor-indemnified parties") against and to hold each Investor-indemnified
party harmless from any and all damages, losses, liabilities and expenses
(including reasonable expenses of investigation and reasonable attorneys' fees
and expenses in connection with any action, claim, suit or proceeding)
(collectively, "Damages") incurred or suffered by any Investor-indemnified party
arising from or in connection with (a) any inaccuracy in any representation or
the breach of any warranty of the Company or any Subsidiary under a Transaction
Document, (b) the failure of the Company or any Subsidiary duly to perform or
observe any term, provision, covenant or agreement to be performed or observed

                                       14
<PAGE>

by the Company or any Subsidiary pursuant to this Agreement or the Warrants, (c)
the assertion by any person not a party to this Agreement of any claim against
an Investor-indemnified Party in connection with the matters or transactions
that are the subject of or contemplated by this Agreement or any of the other
Transaction Documents, or (d) the status of any Investor-indemnified Party as a
holder of equity interests in the Company or the existence or exercise of the
rights and powers of such Investor-indemnified Party relating thereto.

     5.2. Indemnification Procedures.
          --------------------------

     (a) If the indemnified parties shall seek indemnification pursuant to this
Article 5, the indemnified parties shall give prompt notice to the Company (as
such, the "indemnifying party") of the assertion of any claim, or the
commencement of any action, suit or proceeding, in respect of which indemnity
may be sought hereunder and will give the indemnifying party such information
with respect thereto as the indemnifying party may reasonably request, but no
failure to give such notice shall relieve the indemnifying party of any
liability hereunder, except to the extent of actual prejudice or damages
suffered as a result thereof. The indemnifying party may, at its expense,
participate in or assume the defense of any such action, suit or proceeding
involving a third party with counsel reasonably acceptable to the indemnified
party. The indemnified party will have the right to employ its counsel in any
such action, but the fees and expenses of such counsel will be at the expense of
such indemnified party unless (i) the employment of counsel by the indemnified
party has been authorized in writing by the indemnifying party, (ii) named
parties include both the indemnified party and the indemnifying party, and such
counsel has advised the indemnified party that there may be legal defenses
available to it that are different from or in addition to those available to the
indemnifying party (in which case the indemnifying party will not have the right
to direct the defense of such action on behalf of the indemnified party) or
(iii) the indemnifying party has not in fact employed counsel to assume the
defense of such action within a reasonable time after receiving notice of the
commencement of the action, in each of which cases the reasonable fees and
expenses of counsel will be at the expense of the indemnifying party, and the
indemnifying party shall reimburse or pay such fees and expenses as they are
incurred. Whether or not the indemnifying party chooses to defend or prosecute
any claim involving a third party, all the parties hereto shall cooperate in the
defense or prosecution thereof and shall furnish such records, information and
testimony, and attend such conferences, discovery proceedings, hearings, trials
and appeals, as may be reasonably requested in connection therewith.

     (b) The indemnifying party shall not be liable under this Article 5 for any
settlement effected without its consent of any claim, litigation or proceedings
by a third party in respect of which indemnity may be sought hereunder, unless
the indemnifying party refuses to acknowledge liability for indemnification
under this Section 5.2 and/or declines to defend the indemnified party in such
claim, litigation or proceeding.

     6. Miscellaneous.
        -------------

     6.1. Survival of Representations and Warranties. Except as otherwise set
forth in this Section 6.1, the representations and warranties of the Company and
the Subsidiaries shall survive any investigation at any time made by or on
behalf of the parties hereto and consummation of the transactions contemplated
by this Agreement.

                                       15
<PAGE>

     6.2. Exercise of Warrants. The Company shall use its reasonable best
efforts to cause by February 1, 2003, each holder of its Pre-Existing Warrants
to agree that, upon the request of the Company, such holder will agree to the
repricing of the exercise price of such securities to $0.001 per share of Common
Stock and that immediately following such repricing, such holder will exercise
such securities.

     6.3. Successors. This Agreement shall bind and inure to the benefit of the
respective successors and permitted assigns of each of the parties under the
Stockholders Agreement and hereunder.

     6.4. Governing Law. This Agreement shall be governed by and construed under
the laws of the State of New York, without regard to the principles of conflicts
of law thereof.

     6.5. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     6.6. Interpretation. The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement. When used in this Agreement, the terms "include,"
"including," "includes" and other derivations of such word shall be deemed to be
followed by the phrase "without limitation."

     6.7. Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the
party to be notified; (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day; (c) 5 days after having been sent by registered or certified mail, return
receipt requested, postage prepaid; or (d) 1 day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt. All communications shall be sent to the address as set
forth below or at such other address as such party may designate by 10 days
advance written notice to the other parties hereto:

          (i) if to the Company, to:

                FiberNet Telecom Group, Inc.
                570 Lexington Avenue
                3rd Floor
                New York, New York  10022
                Attention:  President
                Facsimile:  (212) 421-8920

                with a copy to:

                Willkie Farr & Gallagher
                787 Seventh Avenue
                New York, New York  10019
                Attention:  Gordon R. Caplan, Esq.
                Facsimile:  (212) 728-8111

                                       16
<PAGE>

          (ii) if to Investors, to:

                Deutsche Bank AG New York Branch
                31 West 52nd Street
                New York, New York 10019
                Attention:  Alexander Richarz
                Telecopy: (646) 324-7455

                Wachovia Investors, Inc.
                301 S. College St.
                TW5 NC0537
                Charlotte, NC 28288
                Attention: Matthew Berk
                Telecopy: (704) 383-9831

                Bank One, N.A.
                55 West Monroe, 17th floor
                Mail Code IL1-0502
                Chicago IL 60670-0502

                IBM Credit Corporation
                North Castle Drive
                Armonk, NY 10504
                Attn: Manager, Special Handling

                Nortel Networks Inc.
                MS 991-15-A40
                2221 Lakeside Boulevard
                Richardson, Texas 75082
                Attention: Customer Finance
                Telecopy: 972-684-3679

                Toronto Dominion (Texas), Inc.
                909 Fannin, Suite 1700
                Houston, Texas 77010
                Attn : Jano Nixon, Vice President

                with a copy to:

                Latham & Watkins
                885 Third Avenue
                New York, New York  10022
                Attention:  John N. Toufanian, Esq.
                Facsimile: (212) 751-4864

                                       17
<PAGE>

     6.8. Finder's Fee. Except as disclosed in the Schedule of Exceptions, each
party represents that it neither is nor will be obligated for any finders' fee
or commission in connection with this transaction. Each party agrees to
indemnify and to hold harmless from any liability for any commission or
compensation in the nature of a finders' fee (and the costs and expenses of
defending against such liability or asserted liability) for which such party or
any of its officers, partners, employees, or representatives is responsible,
each other party and such other party's officers, partners, employees or
representatives.

     6.9. Expenses. Irrespective of whether the Closing is effected, the Company
shall pay all costs and expenses incurred by it, its affiliates and the
Investors with respect to the negotiation, execution, delivery and performance
of this Agreement, including the reasonable fees and expenses of Latham &
Watkins, counsel to the Investors.

     6.10. Amendments and Waivers. Any term of this Agreement may be amended and
the observance of any term of this Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively), only with
the written consent of the Company and the holders of more than 75% of the
Common Stock (on a fully-diluted basis) issued or issuable hereunder. Any
amendment or waiver effected in accordance with this paragraph shall be binding
upon each holder of any Securities purchased under this Agreement at the time
outstanding (including Securities into which such Securities are convertible),
each future holder of all such Securities, and the Company. Notwithstanding the
foregoing, if in any particular instance a party's obligations or rights under
this Agreement are adversely affected thereby in a disproportionately adverse
manner from that in which other parties are affected by application of this
Section, the consent of such party shall also be required in such instance.

     6.11. Severability. If one or more provisions of this Agreement are held to
be unenforceable under applicable law, such provision shall be excluded from
this Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

     6.12. Aggregation of Stock. All shares of the Common Stock and all Warrants
held or acquired by affiliated entities or persons shall be aggregated together
for the purpose of determining the availability of any rights under this
Agreement.

     6.13. Entire Agreement. This Agreement and the documents referred to herein
constitute the entire agreement among the parties and no party shall be liable
or bound to any other party in any manner by any warranties, representations, or
covenants except as specifically set forth herein or therein.

     6.14. Publication. No party hereto shall use any other party's name or
refer to any other party directly or indirectly in any advertisement, news
release or professional or trade publication, or in any other manner, unless
otherwise required by law or with such party's prior written consent, or
pursuant to this Section 6.14. None of the parties to any of the Transaction
Documents shall issue any press release or other public statement relating to
this

                                       18
<PAGE>

Agreement or the transactions contemplated hereby unless advised by counsel that
such disclosure is required by law and, in any case, without first giving the
other parties the opportunity to review and comment upon such statement unless
not reasonably practicable under the circumstances.

     6.15. Confidentiality. Each party hereto agrees that, except with the prior
written permission of the other parties, or as permitted by Section 6.14 of this
Agreement, it shall at all times keep confidential and not divulge, furnish or
make accessible to anyone any confidential information, knowledge or data
concerning or relating to the business or financial affairs of the other parties
to which such party has been or shall become privy by reason of this Agreement,
discussions or negotiations relating to this Agreement, the performance of its
obligations hereunder or the ownership of Common Stock and Warrants purchased
hereunder. In addition, the Company agrees it will not disclose, and will not
include in any public announcement, the name of the Investors, unless expressly
agreed to by the Investors or unless and until such disclosure is required by
law or applicable regulation, and then only to the extent of such requirement.
The provisions of this Section 6.15 shall be in addition to, and not in
substitution for, the provisions of any separate nondisclosure agreement
executed by the parties hereto with respect to the transactions contemplated
hereby.

     6.16. Exculpation Among Investors. Each Investor acknowledges that it is
not relying upon any person, firm or corporation, other than the Company and its
officers and directors, in making its investment or decision to invest in the
Company. Each Investor agrees that no Investor nor the respective controlling
persons, officers, directors, partners, agents, or employees of any Investor
shall be liable to any other Investor for any action heretofore or hereafter
taken or omitted to be taken by any of them in connection with the purchase of
the Securities.

     6.17. Register of Securities. The Company or its duly appointed agent shall
maintain a separate register for the shares of Common Stock in which it shall
register the issue and sale of all such shares. All transfers of securities
shall be recorded on the register. The Company shall be entitled to regard the
registered holder of its securities as the holder of such securities so
registered for all purposes until the Company or its agent is required to record
a transfer of such securities on its register. The Company or its agent shall be
required to record a transfer when it receives the security to be transferred
duly and properly endorsed by the registered holder thereof or by its attorney
duly authorized in writing.

     6.18. Replacement of Certificates. Upon receipt of a lost instrument
certificate with indemnity provisions reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of any certificate representing any
Company securities, the Company shall issue a new certificate representing such
securities in lieu of such lost, stolen, destroyed or mutilated certificate.

     6.19. Interpretation of "Knowledge." Statements herein that are qualified
as to the "knowledge of the Company" or similar statements shall mean the actual
knowledge of the executive officers of the Company, after reasonable inquiry;
provided that any statement qualified as to the "actual knowledge" of the
Company shall mean the actual knowledge of the executive officers of the
Company, without inquiry.

                                       19
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                        FIBERNET TELECOM GROUP, INC.

                                        By: /s/ Michael S. Liss
                                            ------------------------------
                                            Name:   Michael S. Liss
                                                    Title:  President and Chief
                                                            Executive Officer

                                        DEUTSCHE BANK AG NEW YORK BRANCH

                                        By: /s/ David J. Bell
                                            ------------------------------
                                            Name:   David J. Bell
                                            Title:  Director

                                        By: /s/ Alexander Richarz
                                            ------------------------------
                                            Name:   Alexander Richarz
                                            Title:  Vice President

                                        WACHOVIA INVESTORS, INC.

                                        By: /s/ Matthew Berk
                                            ------------------------------
                                            Name:   Matthew Berk
                                            Title:  Authorized Officer

                                        BANK ONE, N.A.

                                        By: /s/ Michele L. Quentin
                                            ------------------------------
                                            Name:   Michele L. Quentin
                                            Title:  Assistant Vice President

                                        IBM CREDIT CORPORATION

                                        By: /s/ Luc Grenon
                                            ------------------------------
                                            Name:   Luc Grenon
                                            Title:  Director, Credit Operations

<PAGE>

                                        NORTEL NETWORKS INC.

                                        By: /s/ Elias Makris
                                            ------------------------------
                                            Name:   Elias Makris
                                            Title:  Director, Customer Finance

                                        TORONTO DOMINION (TEXAS), INC.

                                        By: /s/ Jane Nixon
                                            ----------------------------
                                            Name:   Jane Nixon
                                            Title:  Vice PresidentEXHIBIT 10.2

                              COMMON STOCK PURCHASE

                                    AGREEMENT

                          Dated as of October 30, 2002

                                  by and among

                          FIBERNET TELECOM GROUP, INC.

                                       and

                       THE PURCHASERS LISTED ON EXHIBIT A

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I  Purchase and Sale of Common Stock.................................1
      Section 1.1 Purchase and Sale of Common Stock..........................1
      Section 1.2 Purchase Price and Closing.................................1

ARTICLE II  Representations and Warranties...................................2
      Section 2.1 Representations and Warranties of the Company..............2
      Section 2.2 Representations and Warranties of the
                  Purchasers................................................11

ARTICLE III  Covenants......................................................13
      Section 3.1 Securities Compliance.....................................13
      Section 3.2 Registration and Listing..................................13
      Section 3.3 Inspection Rights.........................................13
      Section 3.4 Compliance with Laws......................................13
      Section 3.5 Keeping of Records and Books of Account...................14
      Section 3.6 Reporting Requirements....................................14
      Section 3.7 Other Agreements..........................................14
      Section 3.8 Subsequent Financings; Right of First Refusal.............14

ARTICLE IV  Conditions......................................................15
      Section 4.1 Conditions Precedent to the Obligation of the
                  Company to Close and to Sell the Shares...................15
      Section 4.2 Conditions Precedent to the Obligation of the
                  Purchasers to Close and to Purchase the Shares............16

ARTICLE V  Certificate Legend...............................................17
      Section 5.1 Legend....................................................17

ARTICLE VI  Indemnification.................................................18
      Section 6.1 General Indemnity.........................................18
      Section 6.2 Indemnification Procedure.................................18

ARTICLE VII  Miscellaneous..................................................19
      Section 7.1 Fees and Expenses.........................................19
      Section 7.2 Specific Enforcement; Consent to Jurisdiction.............20
      Section 7.3 Entire Agreement; Amendment...............................20
      Section 7.4 Notices...................................................20
      Section 7.5 Waivers...................................................21
      Section 7.6 Headings..................................................21
      Section 7.7 Successors and Assigns....................................22
      Section 7.8 No Third Party Beneficiaries..............................22
      Section 7.9 Governing Law.............................................22
      Section 7.10 Survival.................................................22
      Section 7.11 Counterparts.............................................22
      Section 7.12 Publicity................................................22

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                            Page
                                                                            ----

      Section 7.13 Severability.............................................22
      Section 7.14 Further Assurances.......................................22

<PAGE>

                         COMMON STOCK PURCHASE AGREEMENT

     This COMMON STOCK PURCHASE AGREEMENT this ("Agreement"), dated as of
October 30, 2002 by and between FiberNet Telecom Group, Inc., a Delaware
corporation (the "Company"), and the purchasers listed on Exhibit A hereto (each
a "Purchaser" and collectively, the "Purchasers"), for the purchase and sale of
shares of the Company's common stock, par value $.001 per share (the "Common
Stock") by the Purchasers.

      The parties hereto agree as follows:

                                    ARTICLE I

                        Purchase and Sale of Common Stock

     Section 1.1 Purchase and Sale of Common Stock and Warrants.

     (a) Upon the following terms and conditions, the Company shall issue and
sell to the Purchasers, and the Purchasers shall purchase from the Company, an
aggregate of 38,000,000 shares of Common Stock (the "Shares") at a price per
share of $.10 (the "Per Share Purchase Price") for an aggregate purchase price
of $3,800,000 (the "Purchase Price"). The Company and the Purchasers are
executing and delivering this Agreement in accordance with and in reliance upon
the exemption from securities registration afforded by Section 4(2) of the U.S.
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder (the "Securities Act"), including Regulation D ("Regulation D"),
and/or upon such other exemption from the registration requirements of the
Securities Act as may be available with respect to any or all of the investments
to be made hereunder.

     (b) Upon the following terms and conditions, the Purchasers shall be issued
Warrants, in substantially the form attached hereto as Exhibit B-1 (the
"Warrants"), to purchase the number of shares of Common Stock set forth opposite
such Purchaser's name on Exhibit A hereto. The Warrants shall have an exercise
price equal to $0.12 per share and shall be immediately exercisable.

     Section 1.2 Purchase Price and Closing. The Company agrees to issue and
sell to the Purchasers and, in consideration of and in express reliance upon the
representations, warranties, covenants, terms and conditions of this Agreement,
the Purchasers, severally but not jointly, agree to purchase the number of
Shares and Warrants, in each case, set forth opposite their respective names on
Exhibit A. The closing of the purchase and sale of the Shares to be acquired by
the Purchasers from the Company under this Agreement shall take place at the
offices of Jenkens & Gilchrist Parker Chapin LLP, The Chrysler Building, 405
Lexington Avenue, New York, New York 10174 (the "Closing") at 10:00 a.m., New
York time (i) on or before October 31, 2002, provided, that all of the
conditions set forth in Article IV hereof and applicable to the Closing shall
have been fulfilled or waived in accordance herewith, or (ii) at such other time
and place or on such date as the Purchasers and the Company may agree upon (the
"Closing Date"). At the Closing, the Company shall deliver or cause to be
delivered to each

                                       1

<PAGE>

Purchaser (i) a certificate registered in the name of the Purchaser representing
the number of Shares that such Purchaser is purchasing pursuant to the terms
hereof and (ii) a certificate representing a Warrant to purchase such number of
shares of Common Stock as is set forth opposite the name of such Purchaser on
Exhibit A. At the Closing, each Purchaser shall deliver its Purchase Price by
wire transfer to an account designated by the Company.

                                   ARTICLE II

                         Representations and Warranties

     Section 2.1 Representations and Warranties of the Company. The Company
hereby represents and warrants to the Purchasers as follows, as of the date
hereof and the Closing Date, except as set forth on the Schedule of Exceptions
attached hereto with each numbered Schedule corresponding to the section number
herein:

     (a) Organization, Good Standing and Power. The Company is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware and has the requisite corporate power to own, lease and
operate its properties and assets and to conduct its business as it is now being
conducted. The Company does not have any Subsidiaries (as defined in Section
2.1(g)) or own securities of any kind in any other entity except as set forth on
Schedule 2.1(g) hereto. The Company and each such Subsidiary (as defined in
Section 2.1(g)) is duly qualified as a foreign corporation to do business and is
in good standing in every jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary except for
any jurisdiction(s) (alone or in the aggregate) in which the failure to be so
qualified will not have a Material Adverse Effect. For the purposes of this
Agreement, "Material Adverse Effect" means any effect on the business,
operations, properties, prospects or financial condition of the Company that is
material and adverse to the Company and its Subsidiaries, taken as a whole, and
any condition, circumstance or situation that would prohibit the Company from
entering into and performing any of its obligations hereunder and under the
other Transaction Documents (as defined below).

     (b) Authorization; Enforcement. The Company has the requisite corporate
power and authority to enter into and perform this Agreement, the Warrants and
that certain Registration Rights Agreement by and among the Company and the
Purchasers, dated as of the date hereof, substantially in the form of Exhibit B
attached hereto (the "Registration Rights Agreement" and, together with this
Agreement, the "Transaction Documents") and to issue and sell the Shares in
accordance with the terms hereof. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by it of the
transactions contemplated thereby have been duly and validly authorized by all
necessary corporate action, and, except as set forth on Schedule 2.1(b), no
further consent or authorization of the Company, its Board of Directors or
stockholders is required. When executed and delivered by the Company, each of
the Transaction Documents shall constitute a valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, reorganization,
moratorium, liquidation, conservatorship, receivership or similar laws relating
to, or affecting generally the enforcement of, creditor's rights and remedies or
by other equitable principles of general application.

                                       2

<PAGE>

     (c) Capitalization. The authorized capital stock of the Company as of the
date of this Agreement consists of 2,000,000,000 shares of Common Stock, of
which 64,331,722 were issued and outstanding as of September 30, 2002, and
20,000,000 shares of preferred stock, par value $.001 per share, of which
104,881 were issued and outstanding as of September 30, 2002. All of the
outstanding shares of the Common Stock and any other outstanding security of the
Company have been duly and validly authorized. Except as set forth in this
Agreement and as set forth on Schedule 2.1(c) hereto, no shares of Common Stock
or any other security of the Company are entitled to preemptive rights or
registration rights and there are no outstanding options, warrants, scrip,
rights to subscribe to, call or commitments of any character whatsoever relating
to, or securities or rights convertible into, any shares of capital stock of the
Company. Furthermore, except as set forth in this Agreement and as set forth on
Schedule 2.1(c) hereto, there are no contracts, commitments, understandings, or
arrangements by which the Company is or may become bound to issue additional
shares of the capital stock of the Company or options, securities or rights
convertible into shares of capital stock of the Company. Except for customary
transfer restrictions contained in agreements entered into by the Company in
order to sell restricted securities or as provided on Schedule 2.1(c) hereto,
the Company is not a party to or bound by any agreement or understanding
granting registration or anti-dilution rights to any person with respect to any
of its equity or debt securities. Except as set forth on Schedule 2.1(c), the
Company is not a party to, and it has no knowledge of, any agreement or
understanding restricting the voting or transfer of any shares of the capital
stock of the Company.

     (d) Issuance of Shares. The Shares to be issued at the Closing have been
duly authorized by all necessary corporate action and, when paid for and issued
in accordance with the terms hereof, the Shares will be validly issued, fully
paid and nonassessable and free and clear of all liens, encumbrances and rights
of refusal of any kind and the holders shall be entitled to all rights accorded
to a holder of Common Stock.

     (e) No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby do not and will not (i) violate any
provision of the Company's Certificate of Incorporation (the "Certificate") or
Bylaws (the "Bylaws"), each as amended to date, or any Subsidiary's comparable
charter documents, (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company or any
of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries' respective properties or assets are bound, or (iii) result in a
violation of any federal, state, local or foreign statute, rule, regulation,
order, judgment or decree (including federal and state securities laws and
regulations) applicable to the Company or any of its Subsidiaries or by which
any property or asset of the Company or any of its Subsidiaries are bound or
affected, except, in all cases, other than violations pursuant to clauses (i) or
(iii) (with respect to federal and state securities laws) above, except, for
such conflicts, defaults, terminations, amendments, acceleration, cancellations
and violations as would not, individually or in the aggregate, have a Material
Adverse Effect. The business of the Company and its Subsidiaries is not being
conducted in violation of any laws, ordinances or regulations of any
governmental entity, except for possible violations, which singularly or in the
aggregate do not and will not have a Material Adverse Effect. Neither the
Company nor any of its Subsidiaries is required under federal, state,

                                       3

<PAGE>

foreign or local law, rule or regulation to obtain any consent, authorization or
order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations
under the Transaction Documents or issue and sell the Shares in accordance with
the terms hereof (other than any filings, consents and approvals which may be
required to be made by the Company under applicable state and federal securities
laws, rules or regulations, the Nasdaq SmallCap Market prior to or subsequent to
the Closing, or any registration provisions provided in the Registration Rights
Agreement).

     (f) Commission Documents, Financial Statements. The Common Stock of the
Company is registered pursuant to Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and, except as disclosed
on Schedule 2.1(f) hereto, the Company has timely filed all reports, schedules,
forms, statements and other documents required to be filed by it with the
Securities and Exchange Commission (the "Commission") pursuant to the reporting
requirements of the Exchange Act (all of the foregoing including filings
incorporated by reference therein being referred to herein as the "Commission
Documents"). At the time of its filing, the Form 10-Q for the fiscal quarter
ended June 30, 2002 (the "Form 10-Q") and the Form 10-K for the fiscal year
ended December 31, 2001, as amended prior to the date of this Agreement (as so
amended, the "Form 10-K") complied in all material respects with the
requirements of the Exchange Act and the rules and regulations of the Commission
promulgated thereunder and other federal, state and local laws, rules and
regulations applicable to such documents, and the Form 10-Q and Form 10-K did
not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. As of their respective dates, the financial statements of the
Company included in the Commission Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and
regulations of the Commission or other applicable rules and regulations with
respect thereto. Such financial statements have been prepared in accordance with
generally accepted accounting principles ("GAAP") applied on a consistent basis
during the periods involved (except (i) as may be otherwise indicated in such
financial statements or the Notes thereto or (ii) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be
condensed or summary statements), and fairly present in all material respects
the financial position of the Company and its Subsidiaries as of the dates
thereof and the results of operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).

     (g) Subsidiaries. Schedule 2.1(g) hereto sets forth each Subsidiary of the
Company, showing the jurisdiction of its incorporation or organization and
showing the percentage of each person's ownership of the outstanding stock or
other interests of such Subsidiary. For the purposes of this Agreement,
"Subsidiary" shall mean any corporation or other entity of which at least a
majority of the securities or other ownership interest having ordinary voting
power (absolutely or contingently) for the election of directors or other
persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other Subsidiaries. All of the
outstanding shares of capital stock of each Subsidiary have been duly authorized
and validly issued, and are fully paid and nonassessable. There are no
outstanding preemptive, conversion or other rights, options, warrants or
agreements granted or issued by or binding upon any Subsidiary for the purchase
or acquisition of any shares of capital stock of any Subsidiary or any other
securities convertible into, exchangeable for or evidencing

                                       4

<PAGE>

the rights to subscribe for any shares of such capital stock. Neither the
Company nor any Subsidiary is subject to any obligation (contingent or
otherwise) to repurchase or otherwise acquire or retire any shares of the
capital stock of any Subsidiary or any convertible securities, rights, warrants
or options of the type described in the preceding sentence except as set forth
on Schedule 2.1(g) hereto. Neither the Company nor any Subsidiary is party to,
nor has any knowledge of, any agreement restricting the voting or transfer of
any shares of the capital stock of any Subsidiary.

     (h) No Material Adverse Change. Since June 30, 2002, the Company has not
experienced or suffered any Material Adverse Effect, except as disclosed on
Schedule 2.1(h) hereto.

     (i) No Undisclosed Liabilities. Except as disclosed on Schedule 2.1(i)
hereto, since June 30, 2002, neither the Company nor any of its Subsidiaries has
incurred any liabilities, obligations, claims or losses (whether liquidated or
unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise)
other than those incurred in the ordinary course of the Company's or its
Subsidiaries respective businesses and which, individually or in the aggregate,
are not reasonably likely to have a Material Adverse Effect.

     (j) No Undisclosed Events or Circumstances. Since June 30, 2002, except as
disclosed on Schedule 2.1(j) hereto, no event or circumstance has occurred or
exists with respect to the Company or its Subsidiaries or their respective
businesses, properties, prospects, operations or financial condition, which,
under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or
disclosed.

     (k) Indebtedness. Schedule 2.1(k) hereto sets forth as of the date hereof
all outstanding secured and unsecured Indebtedness of the Company or any
Subsidiary, or for which the Company or any Subsidiary has commitments. For the
purposes of this Agreement, "Indebtedness" shall mean (a) any liabilities for
borrowed money or amounts owed in excess of $300,000 (other than trade accounts
payable incurred in the ordinary course of business), (b) all guaranties,
endorsements and other contingent obligations in respect of Indebtedness of
others in excess of $100,000, whether or not the same are or should be reflected
in the Company's balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $25,000 due under leases required to be
capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is
in default with respect to any Indebtedness.

     (l) Title to Assets. Each of the Company and the Subsidiaries has good and
marketable title to all of its real and personal property reflected in the
Commission Documents, free and clear of any mortgages, pledges, charges, liens,
security interests or other encumbrances, except for those indicated on Schedule
2.1(l) hereto or such that, individually or in the aggregate, do not cause a
Material Adverse Effect. All said leases of the Company and each of its
Subsidiaries are valid and subsisting and in full force and effect.

                                       5

<PAGE>

     (m) Actions Pending. There is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the knowledge of the Company, threatened against the Company or any
Subsidiary which questions the validity of this Agreement or any of the other
Transaction Documents or any of the transactions contemplated hereby or thereby
or any action taken or to be taken pursuant hereto or thereto. Except as set
forth on Schedule 2.1(m) hereto, there is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the knowledge of the Company, threatened, against or involving the
Company, any Subsidiary or any of their respective properties or assets, which
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. There are no outstanding orders, judgments,
injunctions, awards or decrees of any court, arbitrator or governmental or
regulatory body against the Company or any Subsidiary or any officers or
directors of the Company or Subsidiary in their capacities as such, which
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

     (n) Compliance with Law. The business of the Company and the Subsidiaries
has been and is presently being conducted in accordance with all applicable
federal, state and local governmental laws, rules, regulations and ordinances,
except as set forth in the Commission Documents or on Schedule 2.1(n) hereto or
such that, individually or in the aggregate, the noncompliance therewith could
not reasonably be expected to have a Material Adverse Effect. The Company and
each of its Subsidiaries have all franchises, permits, licenses, consents and
other governmental or regulatory authorizations and approvals necessary for the
conduct of its business as now being conducted by it unless the failure to
possess such franchises, permits, licenses, consents and other governmental or
regulatory authorizations and approvals, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

     (o) Taxes. Except as set forth on Schedule 2.1(o) hereto, the Company and
each of the Subsidiaries has accurately prepared and filed all federal, state
and other tax returns required by law to be filed by it, has paid or made
provisions for the payment of all taxes shown to be due and all additional
assessments, and adequate provisions have been and are reflected in the
financial statements of the Company and the Subsidiaries for all current taxes
and other charges to which the Company or any Subsidiary is subject and which
are not currently due and payable. Except as disclosed on Schedule 2.1(o)
hereto, none of the federal income tax returns of the Company or any Subsidiary
have been audited by the Internal Revenue Service. The Company has no knowledge
of any additional assessments, adjustments or contingent tax liability (whether
federal or state) of any nature whatsoever, whether pending or threatened
against the Company or any Subsidiary for any period, nor of any basis for any
such assessment, adjustment or contingency.

     (p) Certain Fees. Except as set forth on Schedule 2.1(p) hereto, the
Company has not employed any broker or finder or incurred any liability for any
brokerage or investment banking fees, commissions, finders' structuring fees,
financial advisory fees or other similar fees in connection with the Transaction
Documents.

     (q) Disclosure. To the best of the Company's knowledge, neither this
Agreement or the Schedules hereto nor any other documents, certificates or
instruments

                                       6

<PAGE>

furnished to the Purchasers by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by this Agreement
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made herein or therein, in the light
of the circumstances under which they were made herein or therein, not
misleading.

     (r) Operation of Business. Except as set forth on Schedule 2.1(r) hereto,
the Company and each of the Subsidiaries owns or possesses the rights to all
patents, trademarks, domain names (whether or not registered) and any patentable
improvements or copyrightable derivative works thereof, websites and
intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations which are necessary for the conduct of
its business as now conducted without any conflict with the rights of others.

     (s) Environmental Compliance. Except as disclosed on Schedule 2.1(s)
hereto, the Company and each of its Subsidiaries have obtained all material
approvals, authorization, certificates, consents, licenses, orders and permits
or other similar authorizations of all governmental authorities, or from any
other person, that are required under any Environmental Laws. "Environmental
Laws" shall mean all applicable laws relating to the protection of the
environment including, without limitation, all requirements pertaining to
reporting, licensing, permitting, controlling, investigating or remediating
emissions, discharges, releases or threatened releases of hazardous substances,
chemical substances, pollutants, contaminants or toxic substances, materials or
wastes, whether solid, liquid or gaseous in nature, into the air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of hazardous
substances, chemical substances, pollutants, contaminants or toxic substances,
material or wastes, whether solid, liquid or gaseous in nature. Except as set
forth on Schedule 2.1(s) hereto, the Company has all necessary governmental
approvals required under all Environmental Laws and used in its business or in
the business of any of its Subsidiaries, except for such instances as would not
individually or in the aggregate have a Material Adverse Effect. The Company and
each of its Subsidiaries are also in compliance with all other limitations,
restrictions, conditions, standards, requirements, schedules and timetables
required or imposed under all Environmental Laws. Except for such instances as
would not individually or in the aggregate have a Material Adverse Effect, there
are no past or present events, conditions, circumstances, incidents, actions or
omissions relating to or in any way affecting the Company or its Subsidiaries
that violate or would be reasonably likely to violate any Environmental Law
after the Closing or that would be reasonably likely to give rise to any
environmental liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study or investigation (i) under any
Environmental Law, or (ii) based on or related to the manufacture, processing,
distribution, use, treatment, storage (including, without limitation,
underground storage tanks), disposal, transport or handling, or the emission,
discharge, release or threatened release of any hazardous substance.
"Environmental Liabilities" means all liabilities of a person (whether such
liabilities are owed by such person to governmental authorities, third parties
or otherwise) whether currently in existence or arising hereafter which arise
under or relate to any Environmental Law.

     (t) Books and Records; Internal Accounting Controls. The records and
documents of the Company and its Subsidiaries accurately reflect in all material
respects the information relating to the business of the Company and the
Subsidiaries, the location and collection of their assets, and the nature of all
transactions giving rise to the obligations or

                                       7

<PAGE>

accounts receivable of the Company or any Subsidiary. The Company and each of
its Subsidiaries maintain a system of internal accounting controls sufficient,
in the judgment of the Company's board of directors, to provide reasonable
assurance that (i) transactions are executed in accordance with management's
general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management's general or
specific authorization and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
actions are taken with respect to any differences.

     (u) Material Agreements. Except for the Transaction Documents (with respect
to clause (i) only), as disclosed in the Commission Documents or as set forth on
Schedule 2.1(u) hereto, or as would not be reasonably likely to have a Material
Adverse Effect, (i) the Company and each of its Subsidiaries has performed all
obligations required to be performed by them to date under any written or oral
contract, instrument, agreement, commitment, obligation, plan or arrangement,
filed or required to be filed with the Commission (the "Material Agreements"),
(ii) the Company nor any of its Subsidiaries have received any notice of default
under any Material Agreement and, (iii) to the best of the Company's knowledge
the Company and its Subsidiaries are not in default under any Material Agreement
now in effect.

     (v) Transactions with Affiliates. Except as set forth on Schedule 2.1(v)
hereto, there are no loans, leases, agreements, contracts, royalty agreements,
management contracts or arrangements or other continuing transactions between
(a) the Company, any Subsidiary or any of their respective customers or
suppliers on the one hand, and (b) on the other hand, any officer, employee,
consultant or director of the Company, or any of its Subsidiaries, or any person
owning any capital stock of the Company or any Subsidiary or any member of the
immediate family of such officer, employee, consultant, director or stockholder
or any corporation or other entity controlled by such officer, employee,
consultant, director or stockholder, or a member of the immediate family of such
officer, employee, consultant, director or stockholder which, in each case, is
required to be disclosed in the Commission Documents or in the Company's most
recently filed definitive proxy statement on Schedule 14A, that is not so
disclosed in the Commission Documents or in such proxy statement.

     (w) Securities Act of 1933. Based in material part upon the representations
herein of the Purchasers, the Company has complied and will comply with all
applicable federal and state securities laws in connection with the offer,
issuance and sale of the Shares hereunder. Neither the Company nor anyone acting
on its behalf, directly or indirectly, has or will sell, offer to sell or
solicit offers to buy any of the Shares or similar securities to, or solicit
offers with respect thereto from, or enter into any negotiations relating
thereto with, any person, or has taken or will take any action so as to bring
the issuance and sale of any of the Shares under the registration provisions of
the Securities Act and applicable state securities laws, and neither the Company
nor any of its affiliates, nor any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D under the Securities Act) in connection with the offer
or sale of any of the Shares.

     (x) Governmental Approvals. Except as set forth on Schedule 2.1(x) hereto,
and except for the filing of any notice prior or subsequent to the Closing that
may be required

                                       8

<PAGE>

under applicable state and/or federal securities laws (which if required, shall
be filed on a timely basis), no authorization, consent, approval, license,
exemption of, filing or registration with any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, is or
will be necessary for, or in connection with, the execution or delivery of the
Shares, or for the performance by the Company of its obligations under the
Transaction Documents.

     (y) Employees. Neither the Company nor any Subsidiary has any collective
bargaining arrangements or agreements covering any of its employees, except as
set forth on Schedule 2.1(y) hereto. Except as set forth on Schedule 2.1(y)
hereto, neither the Company nor any Subsidiary has any employment contract,
agreement regarding proprietary information, non-competition agreement,
non-solicitation agreement, confidentiality agreement, or any other similar
contract or restrictive covenant, relating to the right of any officer, employee
or consultant to be employed or engaged by the Company or such Subsidiary
required to be disclosed in the Commission Documents that is not so disclosed.
Since June 30, 2002, no officer, consultant or key employee of the Company or
any Subsidiary whose termination, either individually or in the aggregate, would
be reasonably likely to have a Material Adverse Effect, has terminated or, to
the knowledge of the Company, has any present intention of terminating his or
her employment or engagement with the Company or any Subsidiary.

     (z) Absence of Certain Developments. Except as provided on Schedule 2.1(z)
hereto, since June 30, 2002, neither the Company nor any Subsidiary has:

     (i) issued any stock, bonds or other corporate securities or any right,
options or warrants with respect thereto;

     (ii) borrowed any amount in excess of $300,000 or incurred or become
subject to any other liabilities in excess of $100,000 (absolute or contingent)
except current liabilities incurred in the ordinary course of business which are
comparable in nature and amount to the current liabilities incurred in the
ordinary course of business during the comparable portion of its prior fiscal
year, as adjusted to reflect the current nature and volume of the business of
the Company and its Subsidiaries;

     (iii) discharged or satisfied any lien or encumbrance in excess of $250,000
or paid any obligation or liability (absolute or contingent) in excess of
$250,000, other than current liabilities paid in the ordinary course of
business;

     (iv) declared or made any payment or distribution of cash or other property
to stockholders with respect to its stock, or purchased or redeemed, or made any
agreements so to purchase or redeem, any shares of its capital stock, in each
case in excess of $50,000 individually or $100,000 in the aggregate;

     (v) sold, assigned or transferred any other tangible assets, or canceled
any debts or claims, in each case in excess of $250,000, except in the ordinary
course of business;

                                       9

<PAGE>

     (vi) sold, assigned or transferred any patent rights, trademarks, trade
names, copyrights, trade secrets or other intangible assets or intellectual
property rights in excess of $250,000, or disclosed any proprietary confidential
information to any person except to customers in the ordinary course of business
or to the Purchasers or their representatives;

     (vii) suffered any material losses or waived any rights of material value,
whether or not in the ordinary course of business, or suffered the loss of any
material amount of prospective business;

     (viii) made any changes in employee compensation except in the ordinary
course of business and consistent with past practices;

     (ix) made capital expenditures or commitments therefor that aggregate in
excess of $500,000;

     (x) entered into any material transaction, whether or not in the ordinary
course of business;

     (xi) made charitable contributions or pledges in excess of $25,000;

     (xii) suffered any material damage, destruction or casualty loss, whether
or not covered by insurance;

     (xiii) experienced any material problems with labor or management in
connection with the terms and conditions of their employment; or

     (xiv) entered into an agreement, written or otherwise, to take any of the
foregoing actions.

     (aa) Use of Proceeds. The proceeds from the sale of the Shares will be used
by the Company for working capital and general corporate purposes.

     (bb) Public Utility Holding Company Act and Investment Company Act Status.
The Company is not a "holding company" or a "public utility company" as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended.
The Company is not, and as a result of and immediately upon the Closing will not
be, an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

     (cc) ERISA. No liability to the Pension Benefit Guaranty Corporation has
been incurred with respect to any Plan by the Company or any of its Subsidiaries
which is or would be materially adverse to the Company and its Subsidiaries. The
execution and delivery of this Agreement and the issue and sale of the Shares
will not involve any transaction which is subject to the prohibitions of Section
406 of ERISA or in connection with which a tax could be imposed pursuant to
Section 4975 of the Internal Revenue Code of 1986, as amended, provided that, if
any of the Purchasers, or any person or entity that owns a beneficial interest
in any of the

                                       10

<PAGE>

Purchasers, is an "employee pension benefit plan" (within the meaning of Section
3(2) of ERISA) with respect to which the Company is a "party in interest"
(within the meaning of Section 3(14) of ERISA), the requirements of Sections
407(d)(5) and 408(e) of ERISA, if applicable, are met. As used in this Section
2.1(cc), the term "Plan" shall mean an "employee pension benefit plan" (as
defined in Section 3 of ERISA) which is or has been established or maintained,
or to which contributions are or have been made, by the Company or any
Subsidiary or by any trade or business, whether or not incorporated, which,
together with the Company or any Subsidiary, is under common control, as
described in Section 414(b) or (c) of the Code.

     (dd) Delisting Notification. The Company has not received a delisting
notification from the Nasdaq SmallCap Market.

     Section 2.2 Representations and Warranties of the Purchasers. Each of the
Purchasers hereby represents and warrants to the Company with respect solely to
itself and not with respect to any other Purchaser as follows as of the date
hereof and as of the Closing Date:

     (a) Organization and Standing of the Purchasers. If the Purchaser is an
entity, such Purchaser is a corporation, limited liability company or
partnership duly incorporated or organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization.

     (b) Authorization and Power. Each Purchaser has the requisite power and
authority to enter into and perform the Transaction Documents and to purchase
the Shares being sold to it hereunder. The execution, delivery and performance
of the Transaction Documents by each Purchaser and the consummation by it of the
transactions contemplated hereby have been duly authorized by all necessary
corporate or partnership action, and no further consent or authorization of such
Purchaser or its Board of Directors, stockholders, or partners, as the case may
be, is required. When executed and delivered by the Purchasers, the other
Transaction Documents shall constitute valid and binding obligations of each
Purchaser enforceable against such Purchaser in accordance with their terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement
of, creditor's rights and remedies or by other equitable principles of general
application.

     (c) No Conflict. The execution, delivery and performance of the Transaction
Documents by the Purchaser and the consummation by the Purchaser of the
transactions contemplated thereby and hereby do not and will not (i) violate any
provision of the Purchaser's charter or organizational documents, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, mortgage, deed of
trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Purchaser is a party or by which the Purchaser's respective
properties or assets are bound, or (iii) result in a violation of any federal,
state, local or foreign statute, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations) applicable to the
Purchaser or by which any property or asset of the Purchaser are bound or
affected, except, in all cases, other than violations pursuant to clauses (i) or
(iii) (with respect to federal and state securities laws) above, except, for
such conflicts, defaults, terminations, amendments, acceleration,

                                       11

<PAGE>

cancellations and violations as would not, individually or in the aggregate,
materially and adversely affect the Purchaser's ability to perform its
obligations under the Transaction Documents.

     (d) Acquisition for Investment. Each Purchaser is purchasing the Shares
solely for its own account for the purpose of investment and not with a view to
or for sale in connection with distribution. Each Purchaser does not have a
present intention to sell any of the Shares, nor a present arrangement (whether
or not legally binding) or intention to effect any distribution of any of the
Shares to or through any person or entity. Each Purchaser acknowledges that it
(i) has such knowledge and experience in financial and business matters such
that Purchaser is capable of evaluating the merits and risks of Purchaser's
investment in the Company and is (ii) able to bear the financial risks
associated with an investment in the Shares and (iii) that it has been given
full access to such records of the Company and the Subsidiaries and to the
officers of the Company and the Subsidiaries as it has deemed necessary or
appropriate to conduct its due diligence investigation.

     (e) Rule 144. Each Purchaser understands that the Shares must be held
indefinitely unless such Shares are registered under the Securities Act or an
exemption from registration is available. Each Purchaser acknowledges that such
person is familiar with Rule 144 of the rules and regulations of the Commission,
as amended, promulgated pursuant to the Securities Act ("Rule 144"), and that
such Purchaser has been advised that Rule 144 permits resales only under certain
circumstances. Each Purchaser understands that to the extent that Rule 144 is
not available, such Purchaser will be unable to sell any Shares without either
registration under the Securities Act or the existence of another exemption from
such registration requirement.

     (f) General. Each Purchaser understands that the Shares are being offered
and sold in reliance on a transactional exemption from the registration
requirements of federal and state securities laws and the Company is relying
upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of such Purchaser set forth herein in order
to determine the applicability of such exemptions and the suitability of such
Purchaser to acquire the Shares. Each Purchaser understands that no United
States federal or state agency or any government or governmental agency has
passed upon or made any recommendation or endorsement of the Shares.

     (g) No General Solicitation. Each Purchaser acknowledges that the Shares
were not offered to such Purchaser by means of any form of general or public
solicitation or general advertising, or publicly disseminated advertisements or
sales literature, including (i) any advertisement, article, notice or other
communication published in any newspaper, magazine, or similar media, or
broadcast over television or radio, or (ii) any seminar or meeting to which such
Purchaser was invited by any of the foregoing means of communications.

     (h) Accredited Investor. Each Purchaser is an "accredited investor" (as
defined in Rule 501 of Regulation D), and such Purchaser has such experience in
business and financial matters that it is capable of evaluating the merits and
risks of an investment in the Shares. Each Purchaser acknowledges that an
investment in the Shares is speculative and involves a high degree of risk. Each
Purchaser has completed or caused to be completed the

                                       12

<PAGE>

Investor Questionnaire Certification attached hereto as Exhibit C certifying as
to its status as an "accredited investor" and understands that the Company is
relying upon the truth and accuracy of the Purchaser set forth therein to
determine the suitability of such Purchaser to acquire the Shares.

     (i) Certain Fees. The Purchasers have not employed any broker or finder or
incurred any liability for any brokerage or investment banking fees,
commissions, finders' structuring fees, financial advisory fees or other similar
fees in connection with the Transaction Documents.

                                   ARTICLE III

                                    Covenants

     The Company covenants with each Purchaser as follows, which covenants are
for the benefit of each Purchaser and their respective permitted assignees.

     Section 3.1 Securities Compliance. The Company shall notify the Commission
in accordance with its rules and regulations, of the transactions contemplated
by any of the Transaction Documents and shall take all other necessary action
and proceedings as may be required and permitted by applicable law, rule and
regulation, for the legal and valid issuance of the Shares to the Purchasers, or
their respective subsequent holders.

     Section 3.2 Registration and Listing. The Company shall use its reasonable
best efforts to cause its Common Stock to continue to be registered under
Sections 12(b) or 12(g) of the Exchange Act, to comply in all respects with its
reporting and filing obligations under the Exchange Act, to comply with all
requirements related to any registration statement filed pursuant to this
Agreement, and to not take any action or file any document (whether or not
permitted by the Securities Act or the rules promulgated thereunder) to
terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under the Exchange Act or Securities Act, except as
permitted herein. The Company shall use its reasonable best efforts to continue
the listing or trading of its Common Stock on the Nasdaq SmallCap Market or any
successor market. The Company will promptly file the "Listing Application" for,
or in connection with, the issuance and delivery of the Shares.

     Section 3.3 Inspection Rights. The Company shall permit, during normal
business hours and upon reasonable request and reasonable notice, each Purchaser
or any employees, agents or representatives thereof, so long as such Purchaser
shall be obligated hereunder to purchase the Shares or shall beneficially own
any Shares, for purposes reasonably related to such Purchaser's interests as a
stockholder to examine and make reasonable copies of and extracts from the
records and books of account of, and visit and inspect the properties, assets,
operations and business of the Company and any Subsidiary, and to discuss the
affairs, finances and accounts of the Company and any Subsidiary with any of its
officers, consultants, directors, and key employees.

                                       13

<PAGE>

     Section 3.4 Compliance with Laws. The Company shall comply, and cause each
Subsidiary to comply, with all applicable laws, rules, regulations and orders,
noncompliance with which would be reasonably likely to have a Material Adverse
Effect.

     Section 3.5 Keeping of Records and Books of Account. The Company shall keep
and cause each Subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
Subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

     Section 3.6 Reporting Requirements. If the Company ceases to file its
periodic reports with the Commission, or if the Commission ceases making these
periodic reports available via the Internet without charge, then the Company
shall furnish the following to each Purchaser so long as such Purchaser shall be
obligated hereunder to purchase the Shares or shall beneficially own Shares:

     (a) Quarterly Reports filed with the Commission on Form 10-Q as soon as
available, and in any event within forty-five (45) days after the end of each of
the first three fiscal quarters of the Company;

     (b) Annual Reports filed with the Commission on Form 10-K as soon as
available, and in any event within ninety (90) days after the end of each fiscal
year of the Company; and

     (c) Copies of all notices, information and proxy statements in connection
with any meetings, that are, in each case, provided to holders of shares of
Common Stock, contemporaneously with the delivery of such notices or information
to such holders of Common Stock.

     Section 3.7 Other Agreements. The Company shall not enter into any
agreement in which the terms of such agreement would restrict or impair the
right or ability to perform of the Company or any Subsidiary under any
Transaction Document.

     Section 3.8 Subsequent Financings; Right of First Refusal. (a) For a period
of one (1) year following the Closing Date, the Company covenants and agrees to
promptly notify (in no event later than five (5) days after making or receiving
an applicable offer) in writing (a "Rights Notice") the Purchasers of the terms
and conditions of any proposed offer or sale to, or exchange with (or other type
of distribution to) any third party (a "Subsequent Financing"), of Common Stock
or any securities convertible, exercisable or exchangeable into Common Stock,
including convertible debt securities (collectively, the "Financing
Securities"). The Rights Notice shall describe, in reasonable detail, the
proposed Subsequent Financing, the proposed closing date of the Subsequent
Financing, which shall not be within twenty (20) calendar days from the date the
Rights Notice is given nor later than forty five (45) calendar days from the
date the Rights Notice is given, including, without limitation, all of the
material terms and conditions thereof. The Rights Notice shall provide each
Purchaser an option (the "Rights Option") during the five (5) trading days
following delivery of the Rights Notice (the "Option Period") to

                                       14

<PAGE>

purchase such amount as the Company and each Purchaser may agree to up to such
Purchaser's pro rata portion of the Purchase Price of the securities being
offered in such Subsequent Financing on the same, absolute terms and conditions
as contemplated by such Subsequent Financing (the "First Refusal Rights").
Delivery of any Rights Notice constitutes a representation and warranty by the
Company that there are no other material terms and conditions, arrangements,
agreements or otherwise except for those disclosed in the Rights Notice, to
provide additional compensation to any party participating in any proposed
Subsequent Financing, including, but not limited to, additional compensation
based on changes in the Purchase Price or any type of reset or adjustment of a
purchase or conversion price or to issue additional securities at any time after
the closing date of a Subsequent Financing. If the Company does not receive
notice of exercise of the Rights Option from any of the Purchasers within the
Option Period, the Company shall have the right to close the Subsequent
Financing with a third party (and, if applicable, with such Purchasers as shall
have exercised their Rights Option); provided that all of the material terms and
conditions of the closing are the same as those provided to the Purchasers in
the Rights Notice. If the closing of the proposed Subsequent Financing does not
occur within 60 days from the date the Rights Notice is given, any closing of
the contemplated Subsequent Financing or any other Subsequent Financing shall be
subject to all of the provisions of this Section, including, without limitation,
the delivery of a new Rights Notice.

     (b) For purposes of this Agreement, a Permitted Financing (as defined
hereinafter) shall not be considered a Subsequent Financing. A "Permitted
Financing" shall mean (1) shares of Common Stock to be issued to strategic
partners and/or in connection with a strategic merger or acquisition; (2) shares
of Common Stock or the issuance of options to purchase shares of Common Stock to
employees, officers, directors, consultants and vendors in accordance with the
Company's equity incentive policies; (3) the issuance of securities pursuant to
an underwritten public offering of the Company's securities; (4) the conversion
or exercise of convertible or exercisable securities issued or outstanding prior
to the date hereof; (5) the registered exchange offer to be effected by the
Company to holders of all of its warrants outstanding prior to the Closing Date,
as described in the Common Stock and Warrant Purchase Agreement dated as of
October 30, 2002, by and among the Company and the lenders under its senior
credit facility; (6) any agreement entered into after the date hereof between
SDS Merchant Fund, L.P. ("SDS") and the Company providing for the surrender by
SDS to the Company of that certain promissory note issued by the Company to SDS
in March 2002 in an initial principal amount of $2,000,000; and (7) any related
agreement or amendment to the Common Stock and Warrant Purchase Agreement dated
as of October 30, 2002 by and among the Company and the lenders under the
Company's senior credit facility providing for the issuance of additional shares
of Common Stock and/or warrants to the lenders under the Company's senior credit
facility in connection with the conversion of additional indebtedness or
interest accrued thereon under such credit facility.

                                   ARTICLE IV

                                   Conditions

     Section 4.1 Conditions Precedent to the Obligation of the Company to Close
and to Sell the Shares. The obligation hereunder of the Company to close and
issue and sell the

                                       15

<PAGE>

Shares to the Purchasers at the Closing Date is subject to the satisfaction or
waiver, at or before the Closing of the conditions set forth below. These
conditions are for the Company's sole benefit and may be waived by the Company
at any time in its sole discretion.

     (a) Accuracy of the Purchasers' Representations and Warranties. The
representations and warranties of each Purchaser shall be true and correct in
all material respects as of the date when made and as of the Closing Date as
though made at that time, except for representations and warranties that are
expressly made as of a particular date, which shall be true and correct in all
material respects as of such date.

     (b) Performance by the Purchasers. Each Purchaser shall have performed,
satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Purchasers at or prior to the Closing Date.

     (c) No Injunction. No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits
the consummation of any of the transactions contemplated by this Agreement.

     (d) Delivery of Purchase Price. The Purchase Price for the Shares shall
have been delivered to the Company on the Closing Date.

     (e) Delivery of Transaction Documents. The Transaction Documents shall have
been duly executed and delivered by the Purchasers to the Company.

     Section 4.2 Conditions Precedent to the Obligation of the Purchasers to
Close and to Purchase the Shares. The obligation hereunder of the Purchasers to
purchase the Shares and consummate the transactions contemplated by this
Agreement is subject to the satisfaction or waiver, at or before the Closing
Date, of each of the conditions set forth below. These conditions are for the
Purchasers' sole benefit and may be waived by the Purchasers at any time in
their sole discretion.

     (a) Accuracy of the Company's Representations and Warranties. Each of the
representations and warranties of the Company in this Agreement and the
Registration Rights Agreement shall be true and correct in all material respects
as of the Closing Date, except for representations and warranties that speak as
of a particular date, which shall be true and correct in all material respects
as of such date.

     (b) Performance by the Company. The Company shall have performed, satisfied
and complied in all material respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date.

     (c) No Suspension, Etc. Trading in the Common Stock shall not have been
suspended by the Commission (except for any suspension of trading of limited
duration agreed to by the Company, which suspension shall be terminated prior to
the Closing), and, at any time prior to the Closing Date, trading in securities
generally as reported by Bloomberg Financial

                                       16

<PAGE>

Markets ("Bloomberg") shall not have been suspended or limited, or minimum
prices shall not have been established on securities whose trades are reported
by Bloomberg, or on the New York Stock Exchange, nor shall a banking moratorium
have been declared either by the United States or New York State authorities.

     (d) No Injunction. No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits
the consummation of any of the transactions contemplated by this Agreement.

     (e) No Proceedings or Litigation. No action, suit or proceeding before any
arbitrator or any governmental authority shall have been commenced, and no
investigation by any governmental authority shall have been threatened, against
the Company or any Subsidiary, or any of the officers, directors or affiliates
of the Company or any Subsidiary seeking to restrain, prevent or change the
transactions contemplated by this Agreement, or seeking damages in connection
with such transactions.

     (f) Opinion of Counsel. The Purchasers shall have received an opinion of
counsel to the Company, dated the date of such Closing, substantially in the
form of Exhibit D hereto, with such exceptions and limitations as shall be
reasonably acceptable to counsel to the Purchasers.

     (g) Shares and Warrants. At or prior to the Closing, the Company shall have
delivered to the Purchasers certificates representing the Shares (in such
denominations as each Purchaser may request) and certificates representing the
Warrants, in each case, being acquired by the Purchasers at the Closing.

     (h) Secretary's Certificate. The Company shall have delivered to the
Purchasers a secretary's certificate, dated as of the Closing Date, as to (i)
the resolutions adopted by the Board of Directors approving the transactions
contemplated hereby, (ii) the Certificate, (iii) the Bylaws, each as in effect
at the Closing, and (iv) the authority and incumbency of the officers of the
Company executing the Transaction Documents and any other documents required to
be executed or delivered in connection therewith.

     (i) Officer's Certificate. On the Closing Date, the Company shall have
delivered to the Purchasers a certificate signed by an executive officer on
behalf of the Company, dated as of the Closing Date, confirming the accuracy of
the Company's representations, warranties and covenants as of the Closing Date
and confirming the compliance by the Company with the conditions precedent set
forth in paragraphs (a)-(e) and (k) of this Section 4.2 as of the Closing Date
(provided that, with respect to the matters in paragraphs (d) and (e) of this
Section 4.2, such confirmation shall be based on the knowledge of the executive
officer after due inquiry).

     (j) Registration Rights Agreement. As of the Closing Date, the parties
shall have entered into the Registration Rights Agreement in the form of Exhibit
B attached hereto.

                                       17

<PAGE>

     (k) Approval of Proxy Statement. The Company's stockholders shall have
approved the proposals contained in the Company's proxy statement filed with the
Commission on September 4, 2002.

     (l) Consummation of Recapitalization. The Recapitalization shall have been
consummated. For purposes of this Agreement, "Recapitalization" shall mean the
transactions contemplated by: (1) the Series J-1 Share Exchange Agreement dated
as of October 30, 2002 by and among the Company and each of the holders of the
Company's Series J-1 preferred stock; (2) the Note Exchange Agreement dated as
of October 30, 2002 by and among the Company and SDS (in connection with the
surrender by SDS of the promissory note issued December 7, 2001 by the Company
to Nortel Networks, Inc.); and (3) the Share Exchange Agreement dated as of
October 30, 2002 by and among the Company and each of the purchasers therein
named (which agreement provides for the issuance of Common Stock upon surrender
of shares of the Company's Series H preferred stock).

                                    ARTICLE V

                               Certificate Legend

     Section 5.1 Legend. Each certificate representing the Shares shall be
stamped or otherwise imprinted with a legend substantially in the following form
(in addition to any legend required by applicable state securities or "blue sky"
laws):

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE NOT
     BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
     "SECURITIES ACT") OR ANY STATE SECURITIES LAWS 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.

     The Company agrees to reissue certificates representing any of the Shares,
without the legend set forth above if at such time, prior to making any transfer
of any such Shares, such holder thereof shall give written notice to the Company
describing the manner and terms of such transfer and removal as the Company may
reasonably request. Such proposed transfer and removal will not be effected
until: (a) the Company has notified such holder that either (i) in the opinion
of Company counsel, the registration of the Shares under the Securities Act is
not required in connection with such proposed transfer; or (ii) a registration
statement under the Securities Act covering such proposed disposition has been
filed by the Company with the Commission and has become effective under the
Securities Act; and (b) the Company has notified such holder that either: (i) in
the opinion of Company counsel, the registration or qualification under the
securities or "blue sky" laws of any state is not required in connection

                                       18

<PAGE>

with such proposed disposition, or (ii) compliance with applicable state
securities or "blue sky" laws has been effected. The Company will respond to any
such notice from a holder within five (5) Business Days. In the case of any
proposed transfer under this Section 5, the Company will use reasonable efforts
to comply with any such applicable state securities or "blue sky" laws, but
shall in no event be required, (x) to qualify to do business in any state where
it is not then qualified, (y) to take any action that would subject it to tax or
to the general service of process in any state where it is not then subject, or
(z) to comply with state securities or "blue sky" laws of any state for which
registration by coordination is unavailable to the Company. The restrictions on
transfer contained in this Section 5.1 shall be in addition to, and not by way
of limitation of, any other restrictions on transfer contained in any other
section of this Agreement.

                                   ARTICLE VI

                                 Indemnification

     Section 6.1 General Indemnity.

     (a) The Company agrees to indemnify and hold harmless each Purchaser (and
its respective directors, officers, affiliates, agents, successors and assigns)
from and against any and all losses, liabilities, deficiencies, costs, damages
and expenses (including, without limitation, reasonable attorneys' fees, charges
and disbursements) ("Losses") incurred by each Purchaser as a result of any
inaccuracy in or breach of the representations, warranties or covenants made by
the Company herein. The Purchasers severally but not jointly agree to indemnify
and hold harmless the Company and its directors, officers, affiliates, agents,
successors and assigns from and against any and all Losses incurred by the
Company as result of any inaccuracy in or breach of the representations,
warranties or covenants made by the Purchasers herein.

     (b) Notwithstanding the foregoing, neither the Company nor the Purchasers
shall be entitled to any indemnification under this Article 6 unless and until
all Losses of the Company or the Purchasers, as applicable, in the aggregate,
are in excess of $50,000 and the Company, or the Purchasers, as applicable,
shall then only be liable for Losses in excess of such amount. The maximum
aggregate liability of the Company pursuant to its indemnification obligations
under this Article 6 shall not exceed the aggregate Purchase Price received
hereunder, and the maximum aggregate liability of each Purchaser pursuant to its
indemnification obligations shall not exceed the portion of the Purchase Price
paid by such Purchaser hereunder.

     Section 6.2 Indemnification Procedure. Any party entitled to
indemnification under this Article VII (an "indemnified party") will give
written notice to the indemnifying party of any matters giving rise to a claim
for indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article VII except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any such action, proceeding or claim is brought against an
indemnified party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the

                                       19

<PAGE>

reasonable judgment of the indemnifying party a conflict of interest between it
and the indemnified party exists with respect to such action, proceeding or
claim (in which case the indemnifying party shall be responsible for the
reasonable fees and expenses of one separate counsel for the indemnified
parties), to assume the defense thereof with counsel reasonably satisfactory to
the indemnified party. In the event that the indemnifying party advises an
indemnified party that it will not contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, such person of its election to defend, settle or
compromise, at its sole cost and expense, any action, proceeding or claim (or
discontinues its defense at any time after it commences such defense), then the
indemnified party may, at its option, defend, settle or otherwise compromise or
pay such action or claim. In any event, unless and until the indemnifying party
elects in writing to assume and does so assume the defense of any such claim,
proceeding or action, the indemnified party's costs and expenses arising out of
the defense, settlement or compromise of any such action, claim or proceeding
shall be losses subject to indemnification hereunder. The indemnified party
shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to
the indemnified party which relates to such action or claim. The indemnifying
party shall keep the indemnified party fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. If
the indemnifying party elects to defend any such action or claim, then the
indemnified party shall be entitled to participate in such defense with counsel
of its choice at its sole cost and expense. The indemnifying party shall not be
liable for any settlement of any action, claim or proceeding effected without
its prior written consent. Notwithstanding anything in this Article VII to the
contrary, the indemnifying party shall not, without the indemnified party's
prior written consent, settle or compromise any claim or consent to entry of any
judgment in respect thereof which imposes any future obligation on the
indemnified party or which does not include, as an unconditional term thereof,
the giving by the claimant or the plaintiff to the indemnified party of a
release from all liability in respect of such claim. The indemnification
required by this Article VII shall be made by periodic payments of the amount
thereof during the course of investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred, so long as the
indemnified party irrevocably agrees to refund such moneys if it is ultimately
determined by a court of competent jurisdiction that such party was not entitled
to indemnification. The indemnity agreements contained herein shall be in
addition to (a) any cause of action or similar rights of the indemnified party
against the indemnifying party or others, and (b) any liabilities the
indemnifying party may be subject to pursuant to the law.

                                   ARTICLE VII

                                  Miscellaneous

     Section 7.1 Fees and Expenses. Each party shall pay the fees and expenses
of its advisors, counsel, accountants and other experts, if any, and all other
expenses, incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement, provided, however, that
the Company shall pay such fees and expenses set forth on Schedule 2.1(p)
hereto, including all reasonable attorneys' fees and expenses (exclusive of
disbursements and out-of-pocket expenses) incurred by the Purchasers in
connection with the

                                       20

<PAGE>

preparation, negotiation, execution and delivery of this Agreement and the other
Transaction Documents and the transactions contemplated thereunder up to an
aggregate amount of $50,000.

     Section 7.2 Specific Performance; Consent to Jurisdiction; Venue.

     (a) The Company and the Purchasers acknowledge and agree that irreparable
damage would occur in the event that any of the provisions of this Agreement or
the other Transaction Documents were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement or the other Transaction Documents
and to enforce specifically the terms and provisions hereof or thereof, this
being in addition to any other remedy to which any of them may be entitled by
law or equity.

     (b) The parties agree that venue for any dispute arising under this
Agreement will lie exclusively in the state or federal courts located in New
York County, New York, and the parties irrevocably waive any right to raise
forum non conveniens or any other argument that New York is not the proper
venue. The parties irrevocably consent to personal jurisdiction in the state and
federal courts of the state of New York. The Company and each Purchaser consent
to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 7.2 shall affect
or limit any right to serve process in any other manner permitted by law. The
Company and the Purchasers hereby agree that the prevailing party in any suit,
action or proceeding arising out of or relating to the Shares, this Agreement or
the Registration Rights Agreement, shall be entitled to reimbursement for
reasonable legal fees from the non-prevailing party.

     Section 7.3 Entire Agreement; Amendment. This Agreement and the Transaction
Documents contain the entire understanding and agreement of the parties with
respect to the matters covered hereby and, except as specifically set forth
herein or in the other Transaction Documents, neither the Company nor any
Purchaser make any representation, warranty, covenant or undertaking with
respect to such matters, and they supersede all prior understandings and
agreements with respect to said subject matter, all of which are merged herein.
No provision of this Agreement may be waived or amended other than by a written
instrument signed by the Company and the Purchasers holding at least a majority
of all Shares then held by the Purchasers. Any amendment or waiver effected in
accordance with this Section 7.3 shall be binding upon each Purchaser (and their
permitted assigns) and the Company.

     Section 7.4 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 addresses for such communications shall be:

                                       21

<PAGE>

If to 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 copies (which copies
shall not constitute notice
to the Company) to:     Willkie Farr & Gallagher
                        787 Seventh Avenue
                        New York, New York 10019
                        Attention: Gordon Caplan
                        Tel No.: (212) 728-8000
                        Fax No.: (212) 728-8111

If to any Purchaser:    At the address of such Purchaser set forth on Exhibit
                        A to this Agreement.

with copies to:         Jenkens & Gilchrist Parker Chapin LLP
                        The Chrysler Building
                        405 Lexington Ave.
                        New York, New York  10174
                        Attention: Christopher S. Auguste
                        Tel No.: (212) 704-6000
                        Fax No.: (212) 704-6288

     Any party hereto may from time to time change its address for notices by
giving written notice of such changed address to the other party hereto.

     Section 7.5 Waivers. No waiver by either party of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right
accruing to it thereafter.

     Section 7.6 Headings. The article, section and subsection headings in this
Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

     Section 7.7 Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and assigns. After
the Closing, the assignment by a party to this Agreement of any rights hereunder
shall not affect the obligations of such party under this Agreement. Subject to
Section 5.1 hereof, the Purchasers may assign the Shares and its rights under
this Agreement and the other Transaction Documents and any other rights hereto
and thereto without the consent of the Company.

                                       22

<PAGE>

     Section 7.8 No Third Party Beneficiaries. This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

     Section 7.9 Governing Law. This Agreement 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 Agreement shall not
interpreted or construed with any presumption against the party causing this
Agreement to be drafted.

     Section 7.10 Survival. The representations and warranties of the Company
and the Purchasers shall survive the execution and delivery hereof and the
Closing until the second anniversary of the Closing Date, except the agreements
and covenants set forth in Articles I, III, V, VI and VII of this Agreement
shall survive the execution and delivery hereof and the Closing hereunder.

     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 shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart.

     Section 7.12 Publicity. The Company agrees that it will not disclose, and
will not include in any public announcement, the names of the Purchasers without
the consent of the Purchasers, which consent shall not be unreasonably withheld
or delayed, or unless and until such disclosure is required by law, rule or
applicable regulation, and then only to the extent of such requirement.

     Section 7.13 Severability. The provisions of this Agreement are severable
and, in the event that any court of competent jurisdiction shall determine that
any one or more of the provisions or part of the provisions contained in this
Agreement 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 and this Agreement
shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that
such provisions would be valid, legal and enforceable to the maximum extent
possible.

     Section 7.14 Further Assurances. From and after the date of this Agreement,
upon the request of the Purchasers or the Company, the Company and each
Purchaser 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 and the
Registration Rights Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       23

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the date first above
written.

                                    FIBERNET TELECOM GROUP, INC.

                                    By: /s/ Michael S. Liss
                                        ------------------------------
                                        Name:   Michael S. Liss
                                        Title:  President and Chief
                                                Executive Officer

                                    PURCHASERS:

                                    By: /s/ Judith E. Olinger
                                        ---------------------------------------
                                        Name:   Judith E. Olinger
                                        Title:  Investor

                                    By: /s/ Myles S. Jerdan
                                        ---------------------------------------
                                        Name:   Myles S. Jerdan
                                        Title:  President, Jerden Enterprises

                                    By: /s/ Alan R. Cohen
                                        ---------------------------------------
                                        Name:   Alan R. Cohen
                                        Title:  Investor

                                    By: /s/ Thomas Contino
                                        ---------------------------------------
                                        Name:   Thomas Contino
                                        Title:  Investor

                                    By: /s/ Jerry D'Anduno
                                        ---------------------------------------
                                        Name:   Jerry D'Anduno
                                        Title:  Investor

                                    By: /s/ William R. Denslow, Jr.
                                        ---------------------------------------
                                        Name:   William R. Denslow, Jr.
                                        Title:  Chairman, Penny Lane, Inc.

                                    By: /s/ Robert W. Duggan
                                        ---------------------------------------
                                        Name:   Robert W. Duggan
                                                Duggan & Associates

                                    By: /s/ Jared Bluestein
                                        ---------------------------------------
                                        Name:   Jared Bluestein
                                        Title:  Director, Alexander Enterprise
                                                Holdings Corp.

                                    By: /s/ Jack Gilbert
                                        ---------------------------------------
                                        Name:   Jack Gilbert
                                        Title:  Investor
<PAGE>

                                    By: /s/ Eliot D. Gersten
                                        ---------------------------------------
                                        Name:   Eliot D. Gersten

                                    By: /s/ Robert Spiegel
                                        ---------------------------------------
                                        Name:   Robert Spiegel
                                        Title:  General Partner,
                                                Trautman Wasserman
                                                8701 Opportunities Fund

                                    By: /s/ Santos Petrocelli
                                        ---------------------------------------
                                        Name:   Santos Petrocelli
                                        Title:  President, SMFS, Inc.

                                    By: /s/ Lawrence Polan
                                        ---------------------------------------
                                        Name:   Lawrence Polan
                                        Title:  President, LPS Consultants Inc.

                                    By: /s/ Michael S. Liss
                                        ---------------------------------------
                                        Name:   Michael S. Liss
                                        Title:  Sole Member, MLS Investments LLC

                                    By: /s/ Randall M. Tuggle
                                        ---------------------------------------
                                        Name:   Randall M. Tuggle
                                        Title:  Investor

                                    By: /s/ Stuart Jacobsen
                                        ---------------------------------------
                                        Name:   Stuart Jacobsen
                                        Title:  Investor

                                    By: /s/ Andrew Wilder
                                        ---------------------------------------
                                        Name:   Andrew Wilder
                                        Title:  Chief Financial Officer
                                                DMG Legacy Fund LLC

<PAGE>

                                    By: /s/ Andrew Wilder
                                        ---------------------------------------
                                        Name:   Andrew Wilder
                                        Title:  Chief Financial Officer
                                                DMG Legacy International Ltd.

                                    By: /s/ Andrew Wilder
                                        ---------------------------------------
                                        Name:   Andrew Wilder
                                        Title:  Chief Financial Officer
                                                DMG Legacy Institutional
                                                Fund LLC

                                    By: /s/ Scott E. Derby
                                        ---------------------------------------
                                        Name:   Scott E. Derby
                                        Title:  Principal
                                                Sargon Capital International
                                                Fund Ltd.

                                    By: /s/ Scott E. Derby
                                        ---------------------------------------
                                        Name:   Scott E. Derby
                                        Title:  General Counsel,
                                                SDS Merchant Fund LP

                                    By: /s/ Steven H. Tishman
                                        ---------------------------------------
                                        Name:   Steven H. Tishman
                                        Title:  Investor

                                    By: /s/ Michael P. Rucker
                                        ---------------------------------------
                                        Name:   Michael P. Rucker
                                        Title:  Trustee, Helen Jones
                                                Marital Trust

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