Document:

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                                                                    Exhibit 10.1

SECURITIES PURCHASE AGREEMENT dated as of June 30, 2000 (the "Agreement") by and
among FIBERNET TELECOM GROUP, INC., a Delaware corporation (the "Company"), and
Nortel Networks Inc., a Delaware corporation, and any successors or assigns
thereto (the "Purchaser").

                                   PREAMBLE

          The Company wishes to sell and issue to the Purchaser shares of its
Series G Preferred Stock (as defined below), and the Purchaser desires to
purchase and accept such Preferred Stock, all upon and subject to the terms and
conditions hereof.

          NOW THEREFORE, the parties to this Agreement hereby agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

1.1       Defined Terms.  Capitalized terms used in this Agreement and not
otherwise defined herein shall have the meanings assigned thereto in the
Certificate of Designation or in Exhibit F hereto.  As used in this Agreement,
                                 ---------
the following terms shall have the following respective meanings:

          "Act" shall mean the Securities Act of 1933, together with any
           ---
applicable regulations, as the same may be amended from time to time.

          "Agreement" shall have the meaning given to such term in the caption.
           ---------

          "Applicable Law" shall mean, with respect to any Person, property,
           --------------
transaction or event, all present and future applicable laws, statutes,
regulations, treaties, judgments and decrees and all applicable official
directives, rules, consents, approvals, authorizations, orders, guidelines and
policies of any Governmental Authority or Persons having authority over or
applicable to such Person or any of its assets or properties.

          "Business Day" shall mean any day other than a Saturday, Sunday or a
           ------------
day on which banks are authorized or required to be closed in New York, New
York.

          "Certificate of Designation" shall mean the Certificate of Designation
           --------------------------
of the Preferred Stock of the Company.

          "Closing Date" shall mean June 30, 2000, or such other date as the
           ------------
Purchaser and the Company shall agree.

          "Code" shall mean the Internal Revenue Service Code of 1986, as
           ----
amended, and the rules and regulations thereunder, as from time to time in
effect, or any successor thereto.

          "Common Stock" means the common stock, par value $.001 per share, of
           ------------
the Company.

          "Company" shall have the meaning given to such term in the caption.
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          "Control" shall mean, with respect to any Person, the possession,
           -------
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

          "Exchange Act" shall mean the Securities Exchange of 1934, together
           ------------
with any applicable regulations, as the same may be amended from time to time.

          "Financial Officer" of any Person shall mean its chief financial
           -----------------
officer or principal accounting officer.

          "Fiscal Year" shall mean, with respect to the Company, the one-year
           -----------
period ending on December 31 of any year.

          "Governmental Authority" shall mean Congress, any legislature,
           ----------------------
assembly, council or other legislative body and any federal, state, municipal or
other governmental department, commission, board, bureau, agency or
instrumentality, or any court or any judicial or quasi-judicial body or
authority, in each case whether of or involving the United States of America or
any political subdivision thereof.

          "Intellectual Property Rights" means all industrial and intellectual
           -----------------------------
property rights, including, without limitation, patents, patent applications,
patent rights, trademarks, trademark applications, trade names, service marks,
service mark applications, copyright, copyright applications, know how, trade
secrets, proprietary processes and formulae, confidential information,
franchises, licenses, inventions, instructions, marketing materials, trade
dress, logos and designs, and all documentation and media constituting,
describing or relating to the foregoing, including, without limitation, manuals,
memoranda and records.

          "Judgments" shall mean all judgments, injunctions, orders and decrees
           ---------
of all courts and arbitrators in proceedings or actions in which the Person in
question is a party or by which any of its assets or properties is bound.

          "Lien" shall mean any security interest, pledge, bailment, mortgage,
           ----
deed of trust, the grant of a power to confess judgment, conditional sale or
title retention agreement, charge, encumbrance, easement, reservation,
preemptive right, restriction, cloud, right of first refusal or first offer,
option, or other similar arrangement or interest in real or personal property,
other than (i) liens arising by operation of law in the ordinary course of
business that, individually and in the aggregate, do not in any material respect
interfere with the use of any of the assets subject thereto, (ii) minor
imperfections of title which do not materially detract from the value of the
property affected or materially impair the operations of the Company and (iii)
liens for taxes not yet due and payable.

          "Material Adverse Effect" shall mean (i) a material adverse effect on
           -----------------------
the business, assets, liabilities, operations, results of operations or
condition (financial or otherwise) of the Company or (ii) any impairment of the
ability of the Company to perform any of its material obligations under any
Transaction Document to which it is a party.

          "Organizational Document" shall mean, with respect to any Person, each
           -----------------------
instrument or other document that (i) defines the existence of such Person,
including its articles

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or certificate of incorporation or organization, as filed or recorded with an
applicable Governmental Authority, or (ii) governs the internal affairs of such
Person, including its by-laws, in each case as amended, supplemented or
restated.

          "Person" shall be construed broadly and shall include any natural
           ------
person, company, partnership, joint venture, corporation, business trust,
unincorporated organization or Governmental Authority.

          "Qualified Public Offering"  shall mean a fully underwritten public
           -------------------------
offering (underwritten by an underwriter of national reputation) of shares of
Common Stock registered pursuant to the Securities Act with proceeds to the
Company of at least $75,000,000 (net of underwriting discounts and expenses).

          "Registration Rights Agreement" shall mean the Registration Rights
           -----------------------------
Agreement dated as of June 30, 2000, by and among the Company and the
stockholders named therein, as amended from time to time.

          "Responsible Officer" of any Person shall mean the Chief Executive
           -------------------
Officer or a Financial Officer of such Person.

          "SEC" means the Securities and Exchange Commission.
           ---

          "Stockholders Agreement" shall mean the Stockholders Agreement dated
           ----------------------
as of  May 7, 1999, as amended on June 30, 2000, by and among the Company and
the stockholders named therein, as amended from time to time.

          "Subsidiary" shall mean any corporation, partnership, joint venture or
           -----------
other legal entity in which the Company owns, directly or indirectly, a majority
equity interest.

          "Transaction Documents" shall mean this Agreement, the Registration
           ---------------------
Rights Agreement, the Amendment to Stockholders Agreement and the Certificate of
Designation.

1.2  Terms Generally.

     The definitions in Section 1.1 shall apply equally to the singular and
plural forms of the terms defined.  Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms.
The words "include", "includes" and "including" shall be deemed to be followed
by the phrase "without limitation".

1.3  Cross-References.

     Unless otherwise specified, references in this Agreement or any Transaction
Document to any Article or Section are references to such Article or Section of
this Agreement or such Transaction Document, as the case may be, and references
in any Article, Section or definition to any clause are references to such
clause of such Section, Article or definition.

1.4  Accounting Terms; GAAP.

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     Except as otherwise expressly provided herein, all terms of an accounting
or financial nature shall be construed in accordance with generally accepted
accounting principles ("GAAP"), consistently applied, and all financial
statements or accounting determinations required herein to be prepared or made
in accordance with GAAP shall be prepared or made in accordance with GAAP
applied on a consistent basis.

                                  ARTICLE II
                        ISSUANCE OF THE PREFERRED STOCK

2.1  Issuance of Preferred Stock.

     Subject to the terms and conditions contained herein, at the Closing (as
hereinafter defined), the Company has authorized the issuance of 2,000,000
shares of Series G Preferred Stock, $.001 par value (the "Preferred Stock"), of
                                                          ---------------
the Company for a purchase price of $10.00  per share (the "Purchase Price Per
                                                            ------------------
Share") or $20,000,000 in the aggregate (the "Preferred Stock Purchase Price").
-----                                         ------------------------------

2.2  Agreement to Sell Preferred Stock.

     At the Closing, the Company shall sell to the Purchaser, and the Purchaser
shall purchase from the Company 2,000,000 shares of Preferred Stock for
$20,000,000.

2.3  Delivery of Preferred Stock.

          (a)  At the Closing, the Company shall deliver to the Purchaser the
stock certificate for the Preferred Stock to be purchased by the Purchaser (with
such certificate registered in the name of the Purchaser), duly executed by the
Company.

          (b)  Delivery shall be made against receipt by the Company of the
Preferred Stock Purchase Price by wire transfer of immediately available funds.

2.4  The Closings.

     The closing hereunder with respect to the issuance, sale and delivery of
2,000,000 shares of Preferred Stock (the "Closing") will take place at the
offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., Chrysler Center,
666 Third Avenue, 25/th/ Floor, New York, New York  10017, simultaneously with
the execution and delivery of this Agreement.

                                  ARTICLE III
                   REPRESENTATIONS AND WARRANTIES OF COMPANY

          The Company represents and warrants to the Purchaser as of the date
hereof as set forth below.

3.1  Organization, Etc.

     The Company and its Subsidiaries are corporations duly organized, validly
existing and in good standing under the laws of the State of Delaware. The
Company and its Subsidiaries

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have all requisite power and authority and have all governmental licenses,
approvals, consents and authorizations necessary to own or lease their
respective property and assets and to carry on their business as currently
conducted and are qualified to do business in each jurisdiction in which the
failure to so qualify or be in good standing would have a Material Adverse
Effect on the Company and its Subsidiaries.

3.2  Corporate Power and Authority; No Required Consents or Approvals.

          (a)  The Company has the power to execute, deliver and perform its
obligations under each Transaction Document to which it is a party and to issue
and sell the Preferred Stock hereunder and to deliver the Preferred Stock to the
Purchaser.

          (b)  The execution, delivery and performance by the Company of each
Transaction Document to which it is a party, including the issuance of Preferred
Stock by the Company, have been duly authorized by all required corporate and
stockholder action of the Company and will not (i) violate any provision of
Applicable Law, any Judgment or any Organizational Document of the Company or
any of its Subsidiaries, (ii) conflict with, result in a breach of or constitute
(alone or with notice or lapse of time or both) a default (or give rise to any
right of termination, modification, cancellation or acceleration) under any
contract to which the Company or any of its Subsidiaries are party or (iii)
result in the creation or imposition of any Lien upon any property of the
Company or any of its Subsidiaries.

          (c)  Except as set forth on Schedule 3.2, no filing with or consent or
                                      ------------
approval of, or other action by, any Governmental Authority or other Person is
or will be required by any Applicable Law or agreement in connection with the
execution, delivery and performance by the Company of any Transaction Document
to which it is a party.

3.3  Enforceability.

     Each Transaction Document to which the Company is a party has been duly
executed and delivered by the Company, and constitutes the legal, valid and
binding obligation of the Company, enforceable in accordance with its terms,
except as enforceability thereof may be limited by any applicable bankruptcy,
reorganization, insolvency or other Applicable Law affecting creditors' rights
generally or by general principles of equity.

3.4  Reports.

     The Company has timely filed the reports and schedules set forth in
Schedule 3.4 with the SEC pursuant to the Exchange Act and the regulations
------------
promulgated thereunder. Such reports (collectively, the "SEC Reports") were
prepared in accordance, and complied as of their respective dates in all
material respects, with the requirements of the Exchange Act and the regulations
promulgated thereunder and did not as of their respective filing dates (or if
amended by a filing prior to the date hereof, then as of the date of such
amendment) 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 the light of the circumstances under which they were
made, not misleading, except to the extent superseded by a SEC Report filed
subsequently and prior to the date hereof. The financial statements (including
any related notes) of the Company included in the SEC Reports complied in all
material respects with applicable

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accounting requirements and all applicable laws, were prepared in conformity
with GAAP applied on a consistent basis (except as otherwise stated in the
financial statements) and present fairly the consolidated financial position,
results of operations, stockholders' equity, liabilities (contingent or
otherwise) and cash flows, as the case may be, of the Company and its
Subsidiaries as of the dates and for the period indicated, subject, in the case
of unaudited interim financial statements to: (i) the absence of certain notes
thereto; and (ii) normal year-end audit adjustments.

3.5  Securities Laws.

     The offering, sale and purchase of the Preferred Stock contemplated hereby
are exempt from registration under the Securities Act.  The issuance of all
other shares of capital stock of the Company on or before the date hereto has
been made in compliance with the Securities Act and all applicable state
securities or blue sky laws.

3.6  Capitalization and Issuance.

          (a)  The authorized capital stock of the Company as of the date hereof
is 170,000,000 shares, consisting of (i) 150,000,000 shares of Common Stock; and
(ii) 20,000,000 shares of Preferred Stock, of which (A) 133,333 shares have been
designated Series C Preferred Stock, (B) 500,000 shares have been designated
Series D Preferred Stock; (C) 750,000 shares have been designated Series E
Preferred Stock; and (D) 500,000 shares have been designated Series F Preferred
Stock. As of June 30, 2000 there were (i) 28,519,795 shares of Common Stock
issued and outstanding; (ii) (A) 83,688 shares of Series C Preferred Stock
issued and outstanding; (B) 310,173 shares of Series D Preferred Stock issued
and outstanding; (C) 293,872 shares of Series E Preferred Stock issued and
outstanding; and (D) 347,819 shares of Series F Preferred Stock issued and
outstanding; (iii) 10,000,000 shares of Common Stock reserved for issuance upon
exercise of stock options of the Company outstanding or which may be granted
pursuant to employee stock option and similar plans; (iv) 11,602,328 shares of
Common Stock reserved for issuance upon the conversion of Preferred Stock; and
(v) 10,229,591 shares of Common Stock reserved for issuance upon the exercise of
warrants outstanding.  Except as set forth on Schedule 3.6, all issued and
                                              ------------
outstanding shares of capital stock of the Company are duly authorized and
validly issued, fully paid, nonassessable, free and clear of all Liens, and such
shares were issued in compliance with all applicable state, provincial and
federal laws concerning the issuance of securities.  Schedule 3.6 contains a
                                                     ------------
list of all management stockholders and all stockholders who, to the Company's
knowledge, own (i) preferred stock of the Company or (ii) in excess of five
percent (5%) of the Common Stock of the Company on a fully diluted basis.  No
shares of the capital stock of the Company other than those described above, are
issued and outstanding.  Except as set forth on Schedule 3.6, there are no
                                                ------------
preemptive or other outstanding rights, options, warrants, conversion rights or
similar agreements or understandings for the purchase or acquisition from the
Company of any shares of capital stock or other securities of the Company.

          (b)  When the shares of Preferred Stock are issued and delivered to
the Purchaser against payment therefor as provided in this Agreement, the
Preferred Stock will be duly and validly issued, fully paid and nonassessable.
Upon any conversion of a share of Preferred Stock in accordance with the terms
thereof, the shares of Common Stock into which

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such share of Preferred Stock is converted will be duly and validly issued,
fully paid and nonassessable. The form of certificate evidencing the Preferred
Stock complies with all applicable requirements of Delaware law.

3.7  Solvency.

     Both before and after giving effect to the transactions contemplated by
this Agreement, the Company is and will be Solvent.

3.8  No Material Adverse Effect.

     Since December 31, 1999, no development, event or change in respect of the
Company or any of its Subsidiaries and no development, event or change in
respect of the telecommunications market in which the Company or any of its
Subsidiaries is or will be conducting its business, has occurred that has caused
or evidences, either in any case or in the aggregate, a Material Adverse Effect.

3.9  Title to Properties; Liens; Real Property; Condition; Use.

          (a)  Title to Properties; Liens.  The Company and each of its
Subsidiaries have (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 most recent financial statements
delivered pursuant to this Agreement, 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 3.9(a), all such
                                             ---------------
properties and assets are held free and clear of Liens (other than Permitted
Liens).

          (b)  Real Property.  As of the Closing Date, Schedule 3.9(b) contains
                                                       ---------------
an accurate and complete list of (i) all material properties owned by the
Company or any of its Subsidiaries and (ii) all material leases, subleases or
assignments of leases (together with all amendments, modifications, supplements,
renewals or extensions of any thereof) affecting real estate or properties owned
or leased by the Company or any of its Subsidiaries regardless of whether the
Company or such Subsidiary is the landlord or tenant (whether directly or as an
assignee or successor in interest) under such lease, sublease or assignment.

          (c)  Condition; Use.  All of the material tangible properties and
assets of the Company and its Subsidiaries are in good operating condition an
repair, normal wear and tear excepted, and reasonably fit for their intended
use. The Company and its subsidiaries enjoy peaceful and undisturbed possession
and use of its leasehold interests in any tangible properties or tangible
assets.

3.10 Litigation; Adverse Facts.

     Except as set forth in Schedule 3.10, there are no actions, suits,
                            -------------
proceedings, arbitrations or governmental investigations at law or in equity, or
before or by any arbitrator or

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Governmental Instrumentality, domestic or foreign (including any Environmental
Claims) that are pending or, to the knowledge of the Company, 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) 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, with respect to any such violations or defaults occurring after
the Closing Date, could reasonably be expected to have a Material Adverse
Effect.

3.11  Payment of Taxes.

      All tax returns and reports of the Company and each Subsidiary of the
Company required to be filed by any such Person 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 each Subsidiary of the Company and upon their respective properties,
assets, employees, income, businesses and franchises which are due and payable
have been paid when due and payable.  The Company knows of no proposed tax
assessment against the Company or any of its Subsidiaries which could reasonably
be expected to have a Material Adverse Effect that is not being actively
contested by the Company or such Subsidiary 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.

3.12  Performance of Agreements; Material Contracts.

          (a)  Neither the Company nor any of its Subsidiaries is in default in
the performance, observance or fulfillment of any of the material obligations,
covenants or conditions contained in any of its Material Contracts and no
condition exists that, with the giving of notice or the lapse of time or both,
would constitute such a default, or that would permit the counterparty to any
Material Contract to terminate the Material Contract to which it is a party.

          (b)  Schedule 3.12(b) contains an accurate and complete list of all
               ----------------
the Material Contracts in effect on the Closing Date.  Except as described on
Schedule 4.9.B, to the knowledge of the Company, all such Material Contracts are
in full force and effect and no defaults currently exist thereunder.  Any
description of the Material Contracts in the SEC Reports are accurate.

3.13  Governmental Regulation.

      Neither the Company nor any of its Subsidiaries is subject to regulation
under the Public Utility Holding Company Act of 1935, the Federal Power Act, or
the Interstate Commerce Act, nor is an "investment company" as defined in the
Investment Company Act of 1940, or subject to regulation under the Investment
Company Act of 1940, or under any other federal or state

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statute or regulation which may limit its ability to incur Indebtedness or which
may otherwise render all or any portion of the Transaction Documents
unenforceable.

3.14  Labor Matters.

      Except as disclosed and described in Schedule 3.14, there are no
                                           -------------
collective bargaining agreements or Multiemployer Plans covering the employees
of the Company as of the Closing Date. The Company is not engaged in any unfair
labor practice that could reasonably be expected to have a Material Adverse
Effect. There is no strike, labor dispute, union organizing activity, slowdown
or stoppage pending or, to the best knowledge of the Company, threatened against
the Company which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

3.15  Environmental Protection.

      Except as set forth in Schedule 3.15 annexed hereto:
                             -------------

      (i) neither the Company nor any of its 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, (b) any Environmental Claim, or (c) any Hazardous Materials Activity;

      (ii) neither the Company nor any of its 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. (S) 9604) or
any comparable state law;

      (iii) 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 any of its Subsidiaries;

      (iv) neither the Company nor any of its Subsidiaries nor, to the Company's
knowledge, any predecessor of the Company or any of its Subsidiaries has filed
any notice under any Environmental Law indicating past or present treatment of
Hazardous Materials at any Facility, and none of the Company's or any of its
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

      (v) compliance with all current or reasonably foreseeable future
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 this Section 4.14. to the contrary, no event or
condition has occurred or is occurring with respect to the Company or any of its
Subsidiaries relating to any Environmental Law, any Release of Hazardous
Materials, or any Hazardous Materials Activity, including any matter disclosed
on Schedule 3.15 annexed hereto, which individually or in the aggregate has had
   -------------
or could reasonably be expected to have a Material Adverse Effect.

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3.16  Immunity.

      Neither the Company nor any of its Subsidiaries is entitled to claim for
itself or any of its assets immunity from suit, execution, attachment or other
legal process in any proceeding in any jurisdiction in connection with any of
the Transaction Documents to which it is a party.

3.17  Additional Matters.

          (a)  Disclosure.  The written factual information furnished by (or
based on written information furnished by) the Company to the Purchaser in
connection with the negotiation of the Transaction Documents (excluding any
financial projections and other estimates or views of future circumstances),
taken as a whole, does not contain, as of the Closing Date, any untrue
statements of material fact and does not omit to state, as of the Closing Date,
any material fact necessary in order to make the statements contained therein,
in light of the circumstances under which they were made, not materially
misleading (unless superseded or corrected and disclosed in writing to the
Purchaser prior to the Closing Date).

          (b)  Licenses and Permits.  The Company has obtained and holds in full
force and effect, free from burdensome restrictions, all Governmental Actions,
franchises, leases, qualifications, easements, rights of way and other rights
and approvals which are necessary for the operation of its business as presently
conducted, except where the failure to obtain such rights and approvals,
individually and in the aggregate, could not be reasonably expected to have a
Material Adverse Effect.  The Company is not in violation of the terms or
conditions of any such Governmental Action, franchise, lease, qualification,
easement, right of way, right or approval, which violation could reasonably be
expected to have a Material Adverse Effect.

          (c)  Intellectual Property.  The Company has obtained and holds 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 expected to have a Material Adverse Effect. No
product, process, method, substance, part or other material presently sold or
employed by the Company 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 as of the Closing Date is set forth in Schedule 3.17.
                                               -------------

          (d)  Year 2000.  Any reprogramming required to permit the proper
functioning, in and following the year 2000, of the Company's and each of its
Subsidiaries' computer systems and equipment containing embedded microchips
(including systems and equipment supplied by others or with which the Company's
or any of its Subsidiaries' systems interface) which the Company or any of its
Subsidiaries possesses as of the date this representation is made or deemed made
and the testing of all such systems and equipment, as so reprogrammed, was
completed by January 1, 2000.  The computer and management information systems
of the Company and each of its Subsidiaries are, and, with ordinary course
upgrading and maintenance, will continue to be, sufficient to permit the Company
and each of its Subsidiaries to conduct its business without causing a Material
Adverse Effect.

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3.18  Subsidiaries.

      All of the Subsidiaries of the Company are identified in Schedule 3.18
                                                               -------------
annexed hereto.  The equity interests of each of the Subsidiaries of the Company
are identified in Schedule 3.18 annexed hereto and such equity interests are
                  -------------
duly authorized, validly issued and fully paid and nonassessable.  Each of the
Subsidiaries of the Company identified in Schedule 3.18 annexed hereto 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 the State of New York and in
every other 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 3.18 annexed hereto completely and correctly
                          -------------
sets forth the ownership of each Subsidiary of the Company.

                                  ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF PURCHASER

4.1   Purchaser Representations and Warranties.

      The Purchaser represents and warrants to the Company as follows:

          (a)  Such Purchaser is acquiring the Preferred Stock to be purchased
by it and the Common Stock issuable upon conversion or exercise of such
Preferred Stock, for its own account, for investment and not with a view to the
distribution thereof, nor with any present intention of distributing the same.

          (b)  Such Purchaser understands that the Preferred Stock have not
been, and any other securities of the Company issuable upon conversion or
exercise of any Preferred Stock, will not be, registered under the Act, by
reason of their issuance in a transaction exempt from the registration
requirements of the Act, and that they must be held indefinitely unless a
subsequent disposition thereof is registered under the Act or is exempt from
registration.

          (b)  Such Purchaser is an "accredited investor," as defined in Rule
501 (the provisions of which are known to such Purchaser) promulgated under the
Act and has been advised by individuals with such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment in the Company, has the ability to bear the economic
risks of its investment for an indefinite period of time, has been furnished
with and has had access to such information as reasonably requested and has had
the opportunity to ask, and has received satisfactory answers for, questions of
the Company.

4.2   Authority.

      Such Purchaser has all requisite power and authority to enter into the
Transaction Documents to which it is a party, to perform its obligations
thereunder, and to consummate the

                                       11
<PAGE>

transactions contemplated thereby. Such Purchaser has not been organized,
reorganized or recapitalized specifically for the purpose of investing in the
Company.

4.3  Enforceability.

     Such Purchaser has taken all requisite action necessary to authorize its
execution and delivery of the Transaction Documents to which it is a party, its
performance of its obligations thereunder, and its consummation of the
transactions contemplated thereby.  Each Transaction Document has been executed
and delivered by an officer or duly authorized representative of Purchaser in
accordance with such authorization.  This Agreement constitutes and, upon their
execution and delivery, the other Transaction Documents to which it is a party
will constitute, valid and binding obligations of such Purchaser, enforceable in
accordance with their terms, subject to applicable bankruptcy, reorganization,
insolvency, and similar laws affecting creditors' rights generally and to
general principles of equity.

4.4  Brokers and Finders.

     No person or entity acting on behalf or under the authority of such
Purchaser is or will be entitled to any broker's, finder's, or similar fee or
commission in connection with the transactions contemplated hereby which would
become an obligation of the Company.

                                   ARTICLE V
                             DELIVERIES AT CLOSING

5.1  Deliveries on the Closing Date.

     The Company and the Purchaser, as applicable, shall make the following
deliveries on the Closing Date:

          (a)  Preferred Stock.  Purchaser shall receive a certificate for its
               ---------------
respective shares of Preferred Stock from the Company in accordance with the
provisions of Section 2.3.

          (b)  Amendment to Stockholders Agreement.  The Company, Purchaser and
               -----------------------------------
Signal Equity Partners, L.P. (formerly known as Signal Capital Partners, L.P.)
shall duly execute and deliver the Amendment to the Stockholders Agreement
substantially in the form of Exhibit A attached hereto, and the Company and the
                             ---------
Purchaser shall have received a duly executed counterpart thereof.

          (d)  Registration Rights Agreement.  The Company and Purchaser shall
               -----------------------------
duly execute and deliver the Registration Rights Agreement substantially in the
form of Exhibit B attached hereto, and the Company and Purchaser shall receive a
        ---------
duly executed counterpart thereof.

          (e)  Charter Amendment.  The Company shall file and the Secretary of
               -----------------
State of Delaware shall accept a Certificate of Designation setting forth the
preferences, privileges, rights and powers of the Preferred Stock substantially
in the form of Exhibit C attached hereto.
               ---------

          (f)  Corporate Documents.  The Purchaser shall receive:
               -------------------

                                       12
<PAGE>

               (i)    a copy of the certificate of incorporation of the Company,
     including all amendments thereto, certified as of a recent date by an
     appropriate public official of the State of Delaware and a certificate as
     to the good standing or existence of the Company in the State of Delaware;

               (ii)   a certificate of a Responsible Officer of the Company
     dated the Closing Date and certifying (A) a correct and complete copy of
     each Organizational Document of the Company as in effect on the Closing
     Date, (B) a correct and complete copy of resolutions duly adopted by the
     board of directors of the Company, authorizing the execution, delivery and
     performance of the Transaction Documents, the sale of the Preferred Stock
     hereunder and the other transactions contemplated hereby and thereby, (C)
     that the certificate of incorporation of the Company has not been amended
     since the date of the last amendment thereto shown on the certificate of
     good standing or existence furnished pursuant to clause (i) above, and (D)
     as to the incumbency and specimen signature of each officer of the Company
     who shall execute any Transaction Document or any other document delivered
     in connection herewith;

               (iii)  a certificate of a Responsible Officer of the Company as
     to the incumbency and specimen signature of the Responsible Officer
     executing the certificate pursuant to clause (ii) above;

               (iv)   a certificate from the Secretary of State of each state in
     the United States of America in which the Company is required to be
     qualified to do business as a foreign corporation, certifying as to such
     qualification and the Company's good standing in such state.

          (g)  Officer's Certificate.  Purchaser shall also receive an officer's
               ---------------------
certificate from a Responsible Officer stating the following in substantially
similar form:

               (i)    the representations and warranties of the Company
     contained in this Agreement shall be true and correct in all material
     respects on and as of the Closing Date with the same effect as though such
     representations and warranties had been made on and as of the Closing Date;

               (ii)   each and all of the agreements and covenants of the
     Company to be performed on or before the Closing Date pursuant to the terms
     hereof, including all deliveries and obligations at Closing, shall have
     been duly performed in all material respects; and

               (iii)  all governmental and third party consents and approvals
     necessary to permit the consummation of the transactions contemplated by
     this Agreement shall have been received.

          (h)  Expenses.  Purchaser shall receive its expenses pursuant to
               --------
Section 7.4 of this Agreement.
-----------

                                       13
<PAGE>

          (i)  Legal Opinion.  Purchaser shall receive a legal opinion from
               -------------
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., counsel to the Company,
covering the matters set forth on Exhibit D attached hereto.
                                  ---------

          (j)  Waivers and Consents.  Purchaser shall receive, in the form of
               --------------------
Exhibit E attached hereto, a copy of the waiver of certain rights by the
---------
stockholders of the Company.

                                  ARTICLE VI
                                   COVENANTS

     So long as (i) at least twenty-five (25%) percent of the shares of
Preferred Stock shall be issued and outstanding; and (ii) a Qualified IPO has
not occurred, the Company covenants as follows in this Article VI.

6.1  Transfer of Preferred Stock.  Each certificate representing Preferred Stock
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
          INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933 OR THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE
          SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
          REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER OF
          THESE SECURITIES IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE
          STOCKHOLDERS AGREEMENT DATED AS OF MAY 7, 1999, AS AMENDED, BY AND
          AMONG FIBERNET TELECOM GROUP, INC. AND THE STOCKHOLDERS LISTED
          THEREIN. SUCH AGREEMENT, AS AMENDED, RESTRICTS THE TRANSFER OF THESE
          SECURITIES FOR A PERIOD OF ONE YEAR FROM THEIR ORIGINAL DATE OF
          ISSUANCE. NO TRANSFER OF THESE SECURITIES SHALL BE VALID OR EFFECTIVE
          UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED."

6.2  Conduct of Business and Maintenance of Existence.  The Company and its
Subsidiaries will continue to engage in business of the same general type as
conducted or contemplated to be conducted by the Company and its Subsidiaries on
the Closing Date, and use their reasonable commercial efforts to preserve, renew
and keep in full force and effect their respective corporate existences and take
all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of the business of the Company and
its Subsidiaries.

6.3  Financial and Other Information.  The Company and its Subsidiaries will
maintain a system of accounts in accordance with sound accounting principles and
procedures, keep full and complete financial records and at the request of the
Purchaser, the Company shall promptly deliver to the Purchaser information
regarding the securityholders, officers and directors of the

                                       14
<PAGE>

Company and any of its Subsidiaries, including, without limitation, names,
addresses, types of securities held and terms of securities held.

6.4  Access to Information. The Company and its Subsidiaries will permit
Purchaser to inspect, at Purchaser's expense, any of the properties or books and
records of the Company and any of the Subsidiaries, to make copies of extracts
from such books and records and to discuss the affairs and condition of the
Company and the Subsidiaries with representatives of the Company and such
Subsidiaries, all to such reasonable extent and at such reasonable times and
intervals as Purchaser may reasonably request.  The Company and its Subsidiaries
will furnish Purchaser copies of all correspondence and mailings to the
stockholders of the Company and its Subsidiaries at the same time such is given
or mailed to such Stockholders.

6.5  No Impairment. The Company and the Subsidiaries will observe and honor in
good faith all rights of Purchaser under the terms of this Agreement or any
other documents executed in connection herewith, and will take no action that
would impair or otherwise prejudice such rights.

6.6  Compliance. The Company shall comply, and cause each Subsidiary to comply,
with all applicable laws, rules, regulations and orders, noncompliance with
which could materially and adversely affect the business or condition, financial
or otherwise of the Company and the Subsidiaries, taken as a whole.

6.7  Brokerage. The Company and its Subsidiaries agree to indemnify and hold
harmless Purchaser for any brokerage commissions, finder's fees or similar
compensation in connection with the transactions contemplated by this Agreement
based on any arrangement or agreement made by the Company or any Subsidiary.

6.8  Exchange Listing. The Company will promptly apply to have listed, on a
when issued basis, on NASDAQ or any other exchange on which the Common Stock of
the Company is traded, any shares of Common Stock issuable to the Purchaser upon
the conversion of the Preferred Stock by the Purchaser.

6.9  Hart-Scott-Rodino Filings.

     The  Company will make any filings required to be made by the Company under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, following
receipt of notice from the Purchaser that it intends to convert its Preferred
Stock and advice from counsel that such filing is required.  The Company shall
notify the Purchaser at least 60 days in advance of when the Company plans to
complete a Qualified Public Offering so that the Purchaser shall have adequate
time for it to determine whether filings are required under such Act and for the
Purchaser and the Company to make any required filings so that the mandatory
waiting period under that Act has expired or been terminated prior to the
mandatory conversion of the Purchaser's Preferred Stock.

6.10 Series C Preferred Stock.

     The Company will not issue any additional shares of its Series C Preferred
Stock.

                                       15
<PAGE>

6.11 Conduct of Operations.

     Except as otherwise permitted or contemplated by this Agreement or with the
written consent of Purchaser, the Company shall not (i) be merged with or into
any other corporation or entity; (ii) sell all or substantially all of its
assets to any third party; (iii) authorize, designate or issue any shares of a
new class or series of equity securities senior to the Preferred Stock as to
liquidation preference, redemption or dividends; (iv) change in any material
respect the principal business of the Company as such business is currently
conducted or as it has been proposed by the Company to the Purchaser to be
conducted; (v) repurchase any Common Stock or Preferred Stock, other than the
purchase of Common Stock from employees pursuant to agreements with the Company
as of the Closing Date to repurchase such stock; provided that the purchase
                                                 --------
price shall not exceed the price paid by such employee for such stock; (vi)
declare or pay any dividend (other than a stock dividend) on the Common Stock;
(vii) except to the extent necessary to comply with foreign laws, create any
subsidiary in which the Company owns less than one hundred percent (100%) of the
equity securities, or permit any Subsidiary to issue any equity securities to
anyone other than the Company or a wholly-owned Subsidiary of the Company or
merge with or into any Subsidiary (other than in connection with the
transactions contemplated by the Agreement and Plan of Reorganization dated as
of June 2, 2000, by and among the Company, FiberNet Holdco, Inc., FiberNet
Merger Sub, Inc., Devnet Merger Sub, LLC, Devnet L.L.C. and F.P. Enterprises
L.L.C.); (viii) make any loans to any officers, directors or affiliates (other
than Subsidiaries) of the Company, other than (a) commission advances and travel
or miscellaneous cash advances in the ordinary course of business and (b) in
connection with the hiring and/or retention of senior executives; (ix) enter
into any business arrangement or agreement with any officer, director or
affiliate of the Company (other than (a) employment agreements, (b) stock option
agreements in accordance with the Company's Employee Equity Participation
Program or 1999 Stock Option Plan, each as amended through the date hereof or as
contemplated to be amended in the latest proxy statement filed by the Company
with the SEC and (c) transactions with Metromedia Fiber Network, Inc. ("MFN"),
Tishman Speyer Properties, LP ("TSP"), or any affiliates of MFN or TSP, which
transactions do not, in the aggregate, involve the issuance of securities
accounting for in excess of five percent (5%) of the fully diluted outstanding
Common Stock of the Company; provided, however, that agreements in effect as of
the date hereof shall not be counted against such five percent (5%) limit); (x)
enter into any arrangement or agreement which (a) conflicts with the rights of
the Purchaser with respect to its Preferred Stock, (b) restricts the Company's
performance under this Agreement or any of the other Transaction Documents or
(c) could result in the repurchase or redemption of any shares of Common Stock,
Preferred Stock or any securities convertible or exchangeable for shares of
Common Stock or Preferred Stock (other than pursuant to (a) agreements with
employees giving the Company the right to repurchase shares upon the termination
of services and (b) the terms of any redeemable preferred stock of the Company
outstanding on the date hereof); (xi) amend the Certificate of Incorporation or
Bylaws of the Company in any manner adverse to the Purchaser or the rights of
the holders of the Preferred Stock (it being understood and agreed that the
amendment of the Certificate of Incorporation for the purpose of authorizing or
issuing securities with rights and preferences junior or pari passu with the
rights and preferences of the Preferred Stock shall not be deemed to be adverse
to the Purchaser); and (xii) authorize a new stock option plan or grant plan or
amend its existing stock option plan

                                       16
<PAGE>

(other than as such plan is contemplated to be amended in the latest proxy
statement filed by the Company with the SEC).

                                  ARTICLE VII

                            COVENANTS OF PURCHASER

7.1  Conversion.

     If the holder of a Majority in Interest (as defined in the Stockholders
Agreement) has irrevocably elected to have the stockholders bound by the
Stockholders Agreement (other than the Purchaser) convert all of their shares of
preferred stock of the Company into shares of Common Stock, that the Purchaser
may refuse, if requested, to convert its shares of Preferred Stock into shares
of Common Stock, except that the Purchaser may not refuse to do so if such
refusal is based primarily on Purchaser's desire or intent to cause the Company
to agree to purchase more equipment and/or software from the Purchaser or to
prevent the Company from purchasing equipment and/or software from another
vendor.

                                 ARTICLE VIII
                                 MISCELLANEOUS

8.1  Communication.

     Subject to the express provisions of this Agreement, all communications
provided for or permitted hereunder shall be in writing, personally delivered to
an officer or other responsible employee of the addressee or sent by registered
mail, charges prepaid, or by telecopy with confirmed receipt (with hard copy to
follow), telegram or other means of recorded telecommunication, charges prepaid,
to the applicable address set forth below or to such other address as either
party hereto may from time to time designate to the other in such manner,
provided that no communication shall be sent by mail pending any threatened or
during any actual postal strike or other disruption of postal service in the
United States.  Any communication so personally delivered shall be deemed to
have been validly and effectively given on the date of such delivery.  Any
communication so sent by registered mail shall be deemed to have been validly
and effectively given on the tenth Business Day next following the day on which
it is sent.  Any communication so sent by telecopy, telegram or other means of
recorded telecommunication shall be deemed to have been validly and effectively
given on the Business Day next following the day on which it is sent.

     Communications sent to the Company shall be addressed to:

     FiberNet Telecom Group, Inc.
     570 Lexington Avenue
     New York, New York 10022
     Attention: President
     Telephone: (212) 405-6200
     Telecopier: (212) 421-8860

                                       17
<PAGE>

     With a copy  to:

     Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
     Chrysler Center
     666 Third Avenue, 25/th/ Floor
     New York, New York 10017
     Attention:  Gordon Caplan, Esq.
     Telephone: (212) 986-7200
     Telecopier: (212) 983-3115

     Communications sent to the Purchaser shall be addressed to:

     Nortel Networks Inc.
     GMS 991 15 A40
     2221 Lakeside Blvd.
     Richardson, Texas 75082-4399
     Attention: Paul D. Day, Vice President Customer Finance North America
     Telephone:
     Telecopier: (972) 684-3679

     With a copy to:

     Jenkens & Gilchrist, a Professional Corporation
     1445 Ross Avenue
     Suite 3200
     Dallas, Texas 75202
     Attention: Daryl Robertson, Esq.
     Telephone: (214) 855-4165
     Telecopier: (214) 855-4300

8.2  Reliance Upon and Survival of Representations, Warranties and Covenants.

     The Company acknowledges and agrees that the representations, warranties,
covenants, acknowledgements and agreements made herein are made with the
intention that they may be relied upon by Purchaser.  The Company further agrees
that by accepting the purchase of the Preferred Stock hereunder that it shall be
representing and warranting that the foregoing representations, warranties,
covenants, acknowledgements and agreements apply with the same force and effect
as if they had been made at the time of Closing and without regard to any
investigation made by Purchaser.  The Company hereby undertakes to notify
Purchaser of any change in any representation, warranty, covenant or other
information relating to such parties set forth herein that take place prior to
the Closing.  The representations and warranties of the Company contained herein
shall survive the Closing of the transactions contemplated hereby and will
continue in full force and effect for a period of two (2) years thereafter;
provided, however, that the representations and warranties contained in Section
3.6 shall survive indefinitely.

8.3  Successors and Assigns.

                                       18
<PAGE>

     This Agreement shall inure to the benefit of and be binding on the parties
hereto, their respective successors and any assignees or transferees of some or
all of the parties' rights or obligations hereunder; provided that, except as
provided in the following sentence, neither this Agreement, nor the benefit
hereof, may be assigned by the Company without the prior written consent of the
Purchaser.

8.4  Expenses of the Purchaser.

     The Company shall be responsible for and promptly pay (i) its own fees and
expenses and (ii) the reasonable fees and out-of-pocket expenses of Purchaser,
including reasonable fees and out-of-pocket expenses of Purchaser's counsel
incurred in connection with the preparation, execution and delivery of this
Agreement and the other Transaction Documents and the purchase of the Preferred
Stock hereunder; provided, however, that the Company's obligation to pay the
fees and expenses of Purchaser shall in no event exceed $35,000.

8.5  GOVERNING LAW.

     (a) ALL QUESTIONS CONCERNING THE CONSTRUCTION, INTERPRETATION AND VALIDITY
OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
DOMESTIC LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR
CONFLICT OF LAW PROVISION OR RULE (WHETHER IN THE STATE OF NEW YORK OR ANY OTHER
JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION
OTHER THAN THE STATE OF NEW YORK.

     (b) DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE
MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON.
THEREFORE, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER
THIS AGREEMENT OR ANY DOCUMENTS RELATED HERETO.

8.6  Rights and Waivers.

     (a) The rights and remedies of Purchaser under the Transaction Documents
and in connection therewith:  (i) are cumulative, (ii) may be exercised as often
and in such order as Purchaser consider appropriate, (iii) are in addition to
the rights and remedies of Purchaser under the general law, and (iv) shall not
be capable of being waived or varied except by virtue of an express waiver or
variation in writing signed by an officer of the Purchaser; and in particular
any failure to exercise or any delay in exercising any of such rights and
remedies shall, to the extent permitted by law, not operate as a waiver or
variation of that or any other such right or remedy; any defective or partial
exercise of any of such rights shall, to the extent permitted by law, not
preclude any other or future exercise of that or any other such right or remedy;
and no act or course of conduct or negotiation on the part of the Purchaser or
on its behalf shall, to the extent

                                       19
<PAGE>

permitted by law, in any way preclude the Purchaser from exercising any such
right or remedy or constitute a suspension or variation of any such right or
remedy.

     (b) No Transaction Document nor any provision thereof, may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the parties thereto.

8.7  Amendments.

     No amendments to, or modification of, this Agreement shall be made without
the written consent of the Purchaser.

8.8  Construction.

     The Company and the Purchaser acknowledge that each of them has had the
benefit of legal counsel of its own choice and has been afforded an opportunity
to review this Agreement and the other Transaction Documents with its legal
counsel and that this Agreement and the other Transaction Documents shall be
construed as if jointly drafted by the Purchaser and the Company.

8.9  Severability.

     Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision
or any other jurisdiction, and such invalid, void or otherwise unenforceable
provisions shall be null and void.  It is the intent of the parties, however,
that any invalid, void or otherwise unenforceable provisions be automatically
replaced by other provisions which are as similar as possible in terms to such
invalid, void or otherwise unenforceable provisions but are valid and
enforceable to the fullest extent permitted by law.

8.10 Counterparts.

     This Agreement may be executed in two or more counterparts, each of which
when executed and delivered shall deemed to be an original, but all of which
when taken together shall constitute but one and the same instrument; either
party may execute this Agreement by signing any counterpart of it.

8.11 Headings.

     Article and Section headings used herein are for convenience of reference
only and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.

8.12 Entire Agreement.

     This Agreement, together with the other Transaction Documents, constitutes
the entire agreement between the parties relating to the subject matter hereof
and, except as stated herein or

                                       20
<PAGE>

in the instruments and documents to be executed and delivered pursuant hereto,
contains all the representations and warranties of the respective parties
relating to the subject matter hereof.

8.13 Confidentiality.

     Unless required by law, the Company will not, without the prior written
consent of the Purchaser, such consent not to be unreasonably withheld or
delayed, make reference to the Purchaser in the Company's marketing,
advertising, press releases or other information available to the public.

                                       21
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Securities
Purchase Agreement to be duly executed by their authorized officers, all as of
the day and year first above written.

                                        FIBERNET TELECOM GROUP, INC.

                                        By: ________________________________
                                            Name:
                                            Title:

                                        NORTEL NETWORKS INC.

                                        By: ________________________________
                                            Name:
                                            Title:<PAGE>

                                                                     Exhibit 4.1
                                                                     -----------

                                                                  EXECUTION COPY
                                                                  --------------

================================================================================

                            -----------------------

                            STOCKHOLDERS' AGREEMENT

                            -----------------------

                                 by and among

                           EARTHWATCH INCORPORATED,

                      MORGAN STANLEY & CO., INCORPORATED,

                          AMERICAN HIGH-INCOME TRUST,

           AMERICAN VARIABLE INSURANCE SERIES ASSET ALLOCATION FUND,

                 AMERICAN VARIABLE INSURANCE SERIES BOND FUND,

           AMERICAN VARIABLE INSURANCE SERIES HIGH-YIELD BOND FUND,

                        THE BOND FUND OF AMERICA, INC.,

                             ITT INDUSTRIES, INC.

                                      and

            THE OTHER PERSONS LISTED ON THE SIGNATURE PAGES HERETO
                (solely with respect to Articles II, V and VII)

                           Dated as of April 8, 1999

================================================================================

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>           <C>                                                           <C>
                                   ARTICLE I

                                  DEFINITIONS
Section 1.1   Definitions...................................................  2

                                  ARTICLE II

                               BOARD COMPOSITION

Section 2.1   Composition of the Board......................................  7
Section 2.2   Committee Representation...................................... 10

                                  ARTICLE III

                                APPROVAL ITEMS

Section 3.1   Approval Required for Certain Actions......................... 10

                                  ARTICLE IV

                       RESTRICTIONS ON TRANSFER OF STOCK

Section 4.1   General Restrictions on Transfer.............................. 11
Section 4.2   Legend........................................................ 12

                                   ARTICLE V

                              REGISTRATION RIGHTS

Section 5.1   Certain Definitions........................................... 12
Section 5.2   Demand Registration........................................... 13
Section 5.3   Piggyback Registration........................................ 15
Section 5.4   Registration Procedures....................................... 16
Section 5.5   Registration Expenses......................................... 20
Section 5.6   Indemnification by the Company................................ 20
Section 5.7   Indemnification by Stockholders............................... 21
Section 5.8   Conduct of Indemnification Proceedings........................ 22
Section 5.9   Contribution.................................................. 23
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>           <C>                                                           <C>
Section 5.10  Participation in Underwritten Registrations................... 24
Section 5.11  Rule 144...................................................... 24
Section 5.12  Holdback Agreements........................................... 24

                                  ARTICLE VI

                        REPRESENTATIONS AND WARRANTIES

Section 6.1   Representations and Warranties of the Company................. 25
Section 6.2   MS Representations and Warranties............................. 26
Section 6.3   CapRe Representations and Warranties.......................... 27
Section 6.4   ITT Representations and Warranties............................ 27

                                  ARTICLE VII

                              GENERAL PROVISIONS

Section 7.1   License Activities............................................ 28
Section 7.2   Termination................................................... 29
Section 7.3   Counterparts.................................................. 29
Section 7.4   Governing Law................................................. 29
Section 7.5   Entire Agreement.............................................. 29
Section 7.6   Specific Performance.......................................... 29
Section 7.7   Notices....................................................... 30
Section 7.8   Successors and Assigns........................................ 31
Section 7.9   Headings...................................................... 31
Section 7.10  Amendments and Waivers........................................ 32
Section 7.11  Interpretation; Absence of Presumption........................ 32
Section 7.12  Severability.................................................. 32
Section 7.13  Further Assurances............................................ 32
</TABLE>

                                     -ii-

<PAGE>

          THIS STOCKHOLDERS' AGREEMENT (the "Agreement"), dated as of April 8,
1999, is made by and among EarthWatch Incorporated, a Delaware corporation (the
"Company"), Morgan Stanley & Co., Incorporated, a Delaware corporation ("MS"),
American High-Income Trust, a Massachusetts business trust, American Variable
Insurance Series Asset Allocation Fund, a Massachusetts business trust, American
Variable Insurance Series Bond Fund, a Massachusetts business trust, American
Variable Insurance Series High-Yield Bond Fund, a Massachusetts business trust,
and The Bond Fund of America, Inc., a Maryland corporation (collectively,
"CapRe" and, together when acting jointly with MS, the "B Holders"), ITT
Industries, Inc., an Indiana corporation ("ITT") and, solely with respect to
Articles II, V and VII, the other persons listed on the signature pages hereto
(such other persons referred to as the "Other Holders").

                                   RECITALS
                                   --------

          WHEREAS, the Company, MS, CapRe and ITT are party to a
Recapitalization Agreement dated as of April 8, 1999 (the "Recap Agreement")
setting forth the terms and conditions of a proposed investment by each of MS,
CapRe and ITT in shares of New Common Stock, New Series A Preferred Stock and
New Series B Preferred Stock (each as defined herein) in connection with the
proposed recapitalization of the Company (the "Recapitalization");

          WHEREAS, as part of the Recapitalization, the Company wishes to issue
and sell certain shares of New Common Stock, New Series A Preferred Stock and
New Series B Preferred Stock to the Purchasers on the terms and conditions set
forth in the Recap Agreement;

          WHEREAS, as part of the Recapitalization, each of the Purchasers
wishes to subscribe for and purchase from the Company certain shares of New
Common Stock, New Series A Preferred Stock and New Series B Preferred Stock on
the terms and conditions set forth in the Recap Agreement;

          WHEREAS, as part of the Recapitalization, each share of Existing
Common Stock and Existing Preferred Stock shall be reclassified into a certain
number of shares of New Series C Preferred Stock;

          WHEREAS, following consummation of the Recapitalization, each of MS,
CapRe and ITT will own a significant percentage of the equity interests in the
Company; and

          WHEREAS, it is a condition to the Recapitalization, and the parties
believe it to be in their best interests, that they enter into this Agreement to
provide for certain rights and restrictions with respect to the corporate
governance of the Company;

<PAGE>

          NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally
bound hereby, the parties agree as follows:

                                   ARTICLE I

                                  DEFINITIONS
                                  -----------

          Section 1.1 Definitions. Capitalized terms not defined herein shall
have their respective meanings specified in the Recap Agreement. As used in this
Agreement, the following terms shall have the following respective meanings:

          (a) "1933 Act" shall mean the Securities Act of 1933, as amended, and
     the regulations promulgated thereunder.

          (b) "1934 Act" shall mean the Securities Exchange Act of 1934, as
     amended, and the regulations promulgated thereunder.

          (c) "A Directors" shall have the meaning specified in Section 2.1(b).

          (d) "Affiliate" shall have the meaning ascribed thereto in Rule 12b-2
     promulgated under the 1934 Act, and as in effect on the date hereof.

          (e) "Agreement" shall have the meaning specified in the preamble.

          (f) "Applicable A Number" shall have the meaning specified in Section
     2.1(c).

          (g) "Applicable B Number" shall have the meaning specified in Section
     2.1(d).

          (h) "Ball Director" shall have the meaning specified in Section
     2.1(h).

          (i) "B Directors" shall have the meaning specified in Section 2.1(b).

          (j) "B Holders" shall have the meaning specified in the preamble. In
     the event this Agreement terminates pursuant to Section 7.2(b) with respect
     to either, but not both, of MS and its Affiliates or CapRe and its
     Affiliates, either of MS or CapRe, remaining bound by this Agreement, shall
     thereafter constitute the "B Holders" for all purposes hereunder.

                                       2

<PAGE>

          (k) "Beneficially Own" shall mean, with respect to any security,
     having direct or indirect "beneficial ownership" of such security, as
     determined pursuant to Rule 13d-3 under the 1934 Act, including without
     limitation pursuant to any agreement, arrangement or understanding, whether
     or not in writing.

          (l) "Board" shall mean the board of directors of the Company.

          (m) "Business Day" shall mean any day that is not a Saturday, a Sunday
     or other day on which banks are required or authorized by law to be closed
     in The City of New York.

          (n) "C Directors" shall have the meaning specified in Section 2.1(h).

          (o) "CapRe" shall have the meaning specified in the preamble.

          (p) "CEO" shall mean the Chief Executive Officer of the Company.

          (q) "Chairman" shall mean the chairman of the Board.

          (r) "Closing" shall have the meaning specified in the recitals.

          (s) "Committee" shall mean a committee or subcommittee of the Board.

          (t) "Company" shall have the meaning specified in the preamble.

          (u) "Company Directors" shall have the meaning specified in Section
     2.1(h).

          (v) "Covered Transaction" shall have the meaning specified in Section
     4.2(a).

          (w) "Demand Registration" shall have the meaning specified in Section
     5.2(a).

          (x) "Demanding Stockholder" shall have the meaning specified in
     Section 5.2(a).

          (y) "DGCL" shall mean the Delaware General Corporation Law.

          (z) "Director" shall mean a member of the Board.

                                       3

<PAGE>

          (aa) "FCC Approval" means a determination of the Federal
     Communications Commission approving of or consenting to the transfer of
     control of the Company to the extent required under the terms of, or rules
     and regulations governing, the FCC Licenses, without any condition
     materially adverse to any of the Company, MS, CapRe and ITT.

          (bb) "FCC Licenses" means the following three licenses held by the
     Company: Earth Station Longmont, Colorado (No. E950498); Earth Station
     Fairbanks, Alaska (No. E950499); and Space Station 21/22-DSS-P-93;
     43-DSS-LA-94(2); and 52-SAT-AMEND-95, authorized August 1, 1995

          (cc) "Fully-Diluted Shares" means the number of shares of New Common
     Stock issued and outstanding assuming the exercise of all outstanding
     options, warrants and rights to acquire, and the conversion of any
     securities convertible into, shares of New Common Stock, whether or not
     then vested or exercisable. When calculating the percentage of the Fully-
     Diluted Shares owned by a specified person, such person shall be deemed to
     own all shares of New Common Stock beneficially owned by such person
     assuming the exercise of all outstanding options, warrants and rights to
     acquire, and the conversion of any securities convertible into, shares of
     New Common Stock, whether or not then vested or exercisable.

          (dd) "High Yield Financing" means the issuance of high-yield
     securities yielding net proceeds to the Company (after the setting aside of
     cash to prefund interest and the payment of fees, expenses and other costs
     associated with such issuance) of up to $125,000,000, such securities to be
     secured by the Satellite Insurance, the terms and conditions of which
     insurance are summarized in Exhibit 5.5 to the Recap Agreement, for the
     purpose of funding the Company's operations through successful launch and
     commercially viable operation of each of QuickBird 1 and QuickBird 2, or
     any successor to such satellite.

          (ee) "Independent Director" means a Director who (apart from such
     directorship) (i) is not a current or former officer or employee of the
     Company or any Affiliate of the Company, (ii) is not a current or former
     director, officer or employee of the party designating such Director for
     election to the Board or any Affiliate of such party, (iii) did not in
     either of the last two completed calendar years receive, and is not an
     officer, director, employee, stockholder holding more than 10% of the
     voting interest of, partner or Affiliate of any entity that in either of
     such entity's two most recent fiscal years received, more than 10% of such
     person or entity's total income from either the Company or the party
     designating such Director for election to the Board.

                                       4

<PAGE>

          (ff) "Initial Public Offering" means the consummation of the first
     sale of shares of New Common Stock for cash by the Company, or by one or
     more stockholders, in an underwritten public offering registered under the
     1933 Act following the date hereof.

          (gg) "ITT" shall have the meaning specified in the preamble.

          (hh) "MS" shall have the meaning specified in the preamble.

          (ii) "MS HSR Clearance Date" shall have the meaning specified in the
     Recap Agreement.

          (jj) "NASDAQ" means the Nasdaq National Market.

          (kk) "New Common Stock" means the Common Stock, par value $.001 per
     share, of the Company to be issued as part of the Recapitalization.

          (ll) "New Equity Plan" shall have the meaning specified in the Recap
     Agreement.

          (mm) "New Series A Preferred Stock" means the Series A Preferred
     Stock, par value $.001 per share, of the Company to be issued as part of
     the Recapitalization.

          (nn) "New Series B Preferred Stock" means the Series B Preferred
     Stock, par value $.001 per share, of the Company to be issued as part of
     the Recapitalization.

          (oo) "New Series C Preferred Stock" means the Series C Preferred
     Stock, par value $.001 per share, of the Company to be issued as part of
     the Recapitalization.

          (pp) "Non-party Holders" means those holders of shares of Existing
     Common Stock and Existing Preferred Stock which do not execute this
     Agreement.

          (qq) "Odetics Warrant" shall have the meaning set forth in the Recap
     Agreement.

          (rr) "Other Holders" shall have the meaning specified in the preamble.

          (ss) "Permitted Transferee" shall mean any transferee of shares of New
     Series A Preferred Stock or New Series B Preferred Stock, or of any shares
     of New Common Stock into which such shares of New Series

                                       5

<PAGE>

     A Preferred Stock or New Series B Preferred Stock shall be converted,
     pursuant to a transfer complying with Section 4.1.

          (tt) "person" shall mean any individual, corporation, partnership,
     limited liability company, joint venture, trust, unincorporated
     organization, other form of business or legal entity or government
     authority.

          (uu) "Piggyback Registration" shall have the meaning specified in
     Section 5.3(a).

          (vv) "Recap Agreement" shall have the meaning specified in the
     recitals.

          (ww) "Recapitalization" shall have the meaning specified in the
     recitals.

          (xx) "Register," "registered" and "registration" shall have the
     meanings specified in Section 5.1(a).

          (yy) "Registrable Securities" shall have the meaning specified in
     Section 5.1(b).

          (zz) "Satellite Insurance" shall have the meaning specified in
     Article I of the Recap Agreement.

          (aaa) "SEC" shall mean the Securities and Exchange Commission.

          (bbb) "Stockholders" shall mean ITT, the B Holders and the Other
     Holders. Where applicable, the phrase "Stockholder" when used herein shall
     not refer to either of MS or CapRe individually, but rather to the
     B Holders in the aggregate.

          (ccc) "Subsidiary" of any person means another person, an amount of
     the voting securities, other voting ownership or voting partnership or
     membership interests of which is sufficient to elect at least a majority of
     its board of directors or other governing body (or, if there are no such
     voting interests, 50% or more of the equity interests of which) is owned or
     controlled directly or indirectly by such person.

          (ddd) "Telespazio" means Nuova Telespazio s.p.a., a corporation
     organized under the laws of Italy.

          (eee) "Waterstone Agreement" shall have the meaning specified in the
     Recap Agreement.

                                       6

<PAGE>

                                  ARTICLE II

                               BOARD COMPOSITION
                               -----------------

          Section 2.1 Composition of the Board.

          (a) Upon and following the earlier to occur of (i) receipt by the
     Company of the FCC Approval and (ii) October 31, 1999, the parties hereto
     and their Permitted Transferees shall take all necessary action as is
     required under applicable law to cause the number of Directors comprising
     the Board to be 11.

          (b) Subject to Section 7.1, notwithstanding anything else in this
     Article II to the contrary, upon and following the earlier to occur of (i)
     receipt by the Company of the FCC Approval and (ii) October 31, 1999 and
     until the second anniversary of the earlier to occur of (i) and (ii), the
     parties hereto and their Permitted Transferees shall take all necessary
     action as is required under applicable law to cause (i) two Directors
     designated by ITT to be elected to the Board (such elected designees, the
     "A Directors") and (ii) four Directors designated by the B Holders to be
     elected to the Board (such elected designees, the "B Directors"); provided,
     however, that MS shall not be entitled to designate any directors prior to
     the MS HSR Clearance Date.

          (c) Subject to Section 7.1, upon and following the second anniversary
     of the earlier to occur of (i) receipt by the Company of the FCC Approval
     and (ii) October 31, 1999, from and after the first Business Day on which
     ITT owns no shares of New Series A Preferred Stock, the parties hereto and
     their Permitted Transferees shall take all necessary action as is required
     under applicable law to designate for election to the Board a certain
     number (the "Applicable A Number") of A Directors. The "Applicable A
     Number" shall be (i) in the event ITT beneficially owns at least 10% of the
     Fully-Diluted Shares, two; (ii) in the event ITT beneficially owns less
     than 10% but at least 5% of the Fully-Diluted Shares, one; or (iii) in the
     event ITT beneficially owns less than 5% of the Fully-Diluted Shares, none;
     provided, however, that once reduced, the Applicable A Number cannot be
     increased by subsequent acquisitions by ITT or its Permitted Transferees of
     beneficial ownership of Fully-Diluted Shares.

          (d) Subject to Section 7.1, upon and following the second anniversary
     of the earlier to occur of (i) receipt by the Company of the FCC Approval
     and (ii) October 31, 1999, from and after the first Business Day on which
     the B Holders own no shares of New Series B Preferred Stock, the parties
     hereto and their Permitted Transferees shall take all necessary action as
     is required under applicable law to designate for election to the

                                       7

<PAGE>

     Board a certain number (the "Applicable B Number") of B Directors. The
     "Applicable B Number" shall be (i) in the event the B Holders beneficially
     own at least 15% of the Fully-Diluted Shares, four; (ii) in the event the B
     Holders beneficially own less than 15% but at least 10% of the Fully-
     Diluted Shares, three; (iii) in the event the B Holders beneficially own
     less than 10% but at least 5% of the Fully-Diluted Shares, two; or (iv) in
     the event the B Holders beneficially own less than 5%, none; provided,
     however, that once reduced, the Applicable B Number cannot be increased by
     subsequent acquisitions by the B Holders or their Permitted Transferees of
     beneficial ownership of Fully-Diluted Shares.

          (e) The number of Directors designable by either ITT or the B Holders,
     as the case may be, hereunder shall be reduced one-for-one by the number of
     Directors which ITT's or the B Holders' Special Permitted Transferees, as
     the case may be, shall have been transferred the right to elect to the
     Board pursuant to Section 7(c) of the Series A Preferred Stock Certificate
     of Designations or the Series B Preferred Stock Certificate of
     Designations, as the case may be.

          (f) To the extent, and only to the extent, that the B Holders shall at
     any time have the right pursuant to this Article II to designate at least
     three Directors for election to the Board, then the B Holders shall be
     required to cause a certain number of such Directors to be Independent
     Directors, such number to be equal to the excess, if any of (A) the number
     of Directors that the B Holders shall have the right to designate for
     election to the Board pursuant to this Section 2.1(d) over (B) two. To
     the extent, and only to the extent, that ITT or the B Holders, as the case
     may be, shall at any time have the right pursuant to this Article II to
     designate three Directors for election to the Board, then ITT or the B
     Holders, as the case may be, shall be required to cause at least one of
     such three Directors to be Independent Directors.

          (g) To the extent that either of ITT or the B Holders at any time has
     the right pursuant to this Article II to designate Directors for election
     to the Board, then ITT or the B Holders, as the case may be, shall be
     required to vote all of their shares of Common Stock held at such time in
     favor of their respective designees.

          (h) Subject to Section 7.1, upon and following the earlier to occur
     of (i) receipt by the Company of the FCC Approval and (ii) October 31,
     1999, the parties hereto and their Permitted Transferees shall take all
     necessary action as is required under applicable law to cause (A) two
     persons designated by the CEO to be elected to the Board (such elected
     designees, the "Company Directors"); (B) two (or three, should Ball have no
     right to designate for election to the Board one Director in (C) below,

                                       8

<PAGE>

     subject to the ownership requirement set forth below) persons designated by
     the Other Holders which at that time hold of record at least a majority of
     the outstanding shares of Series C Preferred Stock then held by all Other
     Holders to be elected to the Board so long as such Other Holders own at
     least 50% of the number of Fully-Diluted Shares owned by such Other Holders
     immediately following the Closing (such elected designees, the
     "C Directors"); and (C) one person designated by Ball to be elected to the
     Board so long as Ball owns at least 50% of the number of Fully-Diluted
     Shares owned by Ball immediately following the Closing (such elected
     designee, the "Ball Director"); provided, however, that the number of
     Directors to be designated by each of the Other Holders and Ball cannot be
     increased by subsequent acquisitions by either the Other Holders or Ball,
     as the case may be, or their Permitted Transferees of beneficial ownership
     of Fully Diluted Shares.

          (i) In the event that a vacancy in the Board is created at any time by
     the death, disability, retirement, resignation or removal (with or without
     cause) of any A Director, B Director, C Director, Company Director or Ball
     Director and not as a result of a reduction in the Applicable A Number or
     the Applicable B Number or the elimination of designation rights under
     Section 2.1(h) above, such vacancy shall be filled by a Director designated
     by ITT, the B Holders, the Other Holders, the CEO or Ball, as appropriate.
     All other vacancies in the Board, including those resulting from a
     reduction in the Applicable A Number or the Applicable B Number or the
     elimination of designation rights under Section 2.1(h) above, shall be
     filled by Directors elected by a majority of the Directors remaining in
     office or, if none, pursuant to the DGCL; provided, however, that ITT, the
     B Holders, the other Holders, the CEO or Ball may choose, in its sole
     discretion, to leave vacant for any period of time any seat on the Board to
     which it has the right to designate for election a Director pursuant to
     this Article II.

          (j) Any rights of ITT, the B Holders, the Other Holders or Ball
     pursuant to Section 2.1(b), (c), (d) or (h), as the case may be, to
     designate for election to the Board A Directors, B Directors or
     C Directors, as the case may be, shall not be transferable to any other
     person, including Permitted Transferees.

          (k) Upon and following the earlier to occur of (i) receipt by the
     Company of the FCC Approval and (ii) October 31, 1999 and so long as
     Telespazio owns at least 50% of the number of Fully-Diluted Shares owned by
     Telespazio immediately following the Closing, the Company shall allow one
     observer designated by Telespazio to attend all meetings of the Board in a
     nonvoting and nonparticipatory capacity, such observer to serve at the
     discretion of the Board, and in connection therewith, the

                                       9

<PAGE>

     Company shall give such observer such notices, minutes, consents and other
     materials, financial or otherwise, provided to the Directors as the
     Company, in its sole discretion, so determines.

          Section 2.2 Committee Representation. Upon and following the earlier
to occur of (a) receipt by the Company of the FCC Approval and (b) October 31,
1999 and during the term of this Agreement, the parties hereto and their
Permitted Transferees shall take all necessary action as is required under
applicable law to assure (a) that the Board have exactly three Committees
(Audit, Compensation and Finance), (b) that each such Committee be composed of
five members and (c) that a minimum of one A Director and one B Director be a
member of each such Committee.

                                  ARTICLE III

                                APPROVAL ITEMS
                                --------------

          Section 3.1 Approval Required for Certain Actions. In addition to
approval by a majority of the Board, the approval of a majority of the A
Directors, if any, and a majority of the B Directors, if any, designated and
elected under Article II shall be required to approve any of the following
actions by the Company:

          (a) the amendment of the Certificate of Incorporation or the Bylaws or
     other organizational documents of the Company, including without limitation
     any and all certificates of designations of any series of preferred stock
     of the Company, or the amendment, termination or waiver of any provision
     under the Recap Agreement;

          (b) other than with respect to shares of New Series C Preferred Stock,
     securities convertible or exercisable into shares of New Series C Preferred
     Stock or rights or warrants entitling the holders thereof to subscribe for
     or purchase shares of New Series C Preferred Stock issued in connection
     with the High-Yield Financing, shares of New Common Stock, and New Series A
     Preferred Stock, New Series B Preferred Stock and New Series C Preferred
     Stock issued pursuant to the Recap Agreement (including any shares
     reclassified upon filing of the Amended and Restated Certificate of
     Incorporation of the Company and conversion of any shares issued in
     accordance with the Recap Agreement or reclassified upon filing of the
     Amended and Restated Certificate of Incorporation of the Company) and
     shares of Common Stock issued in connection with an Initial Public Offering
     or the issuance of securities pursuant to the Waterstone Agreement or the
     exercise of the Odetics Warrant or the exercise of options pursuant to the
     Existing Stock Option Plan (and related agreements) or the grant or
     exercise of options pursuant to the New Equity Plan

                                      10

<PAGE>

     (and related agreements), such grant or exercise under the New Equity Plan,
     together with all prior grants or exercises under the New Equity Plan since
     the Closing Date, representing in the aggregate no more than 15% of the
     Fully-Diluted Shares as of the Closing Date, the issuance, delivery or sale
     of any shares or equity interests, or any options, warrants, conversion or
     other rights to purchase any such shares or equity interests, or any
     securities convertible into or exchangeable for such shares or equity
     interests, or the issuance of any other security in respect of or in lieu
     of or in substitution for shares or equity interests, or the entry into any
     agreements restricting the transfer of, or affecting the rights of holders
     of shares or equity interests, the granting of any preemptive or anti-
     dilutive rights to any holder of any class of securities, or the granting
     of registration rights with respect to any class of securities;

          (c) except for the High Yield Financing, the incurrence of any
     indebtedness for borrowed money, the making of any guarantee of any such
     indebtedness, the issuance or sale of any debt securities, or the
     prepayment or refinancing of any indebtedness for borrowed money, in each
     case in excess of $25 million in the aggregate;

          (d) the replacement of the Company's independent auditors or the
     making of any material change in any method of financial accounting or
     accounting practice, except for any such change required by reason of a
     concurrent change in generally accepted accounting principles; and

          (e) the entry into any agreement with respect to the foregoing.

                                  ARTICLE IV

                       RESTRICTIONS ON TRANSFER OF STOCK

          Section 4.1 General Restrictions on Transfer. None of ITT, MS or CapRe
shall directly or indirectly sell, offer, transfer, assign, pledge, hypothecate
or otherwise dispose of any shares of New Series A Preferred Stock or New Series
B Preferred Stock or any shares of the New Common Stock into which such shares
of New Series A Preferred Stock or New Series B Preferred Stock, as the case may
be, shall be converted, in a manner that violates the provisions of this
Agreement or any applicable federal and state securities laws. Except for
transfers made as part of the same transaction or series of transactions to a
broadly distributed group of transferees, no transfer shall be permitted under
this Agreement unless and until the proposed transferee or transferees shall
agree in writing, in form and substance reasonably satisfactory to the non-
transferring parties hereto, to become bound, and becomes bound, by all the
terms of this Agreement. Any transfer of shares of New Series A Preferred Stock
or New Series B Preferred Stock, as the case may be, or shares of New Common
Stock into which such shares of New Series A Preferred Stock or New Series B
Preferred Stock, as the

                                      11

<PAGE>

case may be, shall be converted in violation of this Agreement shall be void and
of no effect.

          Section 4.2 Legend. All certificates representing shares of New Series
A Preferred Stock or New Series B Preferred Stock, or shares of New Common Stock
into which such shares of New Series A Preferred Stock or New Series B Preferred
Stock shall be converted, except for such shares transferred as part of the same
transaction or series of transactions to a broadly distributed group of
transferees pursuant to the second sentence of Section 4.1, shall bear a legend
stamped, typed or otherwise legibly placed on the face or reverse side thereof
substantially in the form set forth below:

     NOTICE IS HEREBY GIVEN THAT the securities represented by this certificate
     have not been registered under the Securities Act of 1933, as amended, or
     the securities laws of any state of the United States or any non-U.S.
     jurisdiction. The securities cannot be offered, sold, transferred or
     otherwise disposed of except (i) pursuant to an effective registration
     statement or amendment thereto under such Act and any other applicable laws
     or (ii) pursuant to an exemption from, or in a transaction not subject to,
     the registration requirements of such Act and such other applicable laws.
     The sale, transfer or other disposition of the securities represented by
     this certificate and certain other rights and obligations of the holder of
     this certificate are also subject to the Stockholders' Agreement, dated as
     of April 8, 1999, by and among EarthWatch Incorporated (the "Company") and
     the other parties thereto (copies of which are available for review at the
     principal office of the Company), and the Company reserves the right to
     refuse the transfer of such securities until all terms and conditions have
     been fulfilled with respect to such transfer as set forth in such
     agreement.

                                   ARTICLE V

                              REGISTRATION RIGHTS

          Section 5.1 Certain Definitions

          (a) "Register," "registered," and "registration" refer to a
     registration effected by preparing and filing a registration statement or
     similar document in compliance with the 1933 Act, and the automatic
     effectiveness or the declaration or ordering of effectiveness of such
     registration statement or document.

          (b) "Registrable Securities" shall mean the shares of New Common Stock
     issuable upon conversion of either of the New Series A Preferred Stock, New
     Series B Preferred Stock or New Series C Preferred

                                      12

<PAGE>

     Stock; provided, however, that any shares of New Common Stock that are sold
     to the public pursuant to a registered public offering or pursuant to Rule
     144 under the 1933 Act or another exemption from the registration
     requirements of the 1933 Act pursuant to which the shares of New Common
     Stock are thereafter freely tradeable without restriction under the 1933
     Act, or that cease to be outstanding, shall cease to be Registrable
     Securities; provided further, however, that any Registrable Securities
     acquired by any Stockholder or any of its Affiliates thereof from another
     Stockholder or any of its Affiliates thereof shall continue to be
     Registrable Securities.

          Section 5.2 Demand Registration

          (a) One or more Stockholders which shall have maintained continuous
     beneficial ownership, individually or in the aggregate, following the
     Closing of at least 10% of the Fully-Diluted Shares (excluding any Fully-
     Diluted Shares sold or otherwise disposed of by any Stockholder after the
     Closing, if even subsequently reacquired) shall have the right, at any time
     after the 90th day following successful launch and commercially viable
     operation, for a period of 60 consecutive days, of QuickBird 1, or any
     successor to such satellite, to request that the Company register, in an
     underwritten public offering or otherwise, under the 1933 Act, Registrable
     Securities with an aggregate fair market value of at least $5,000,000 held
     by it or them (any registration resulting from such a request a "Demand
     Registration," with such Stockholder or Stockholders making such request
     the "Demanding Stockholder"); provided, however, that the Other Holders
     shall have no right to request a Demand Registration prior to 180 days
     following an Initial Public Offering. A request for a Demand Registration
     shall specify the number of shares of Registrable Securities proposed to be
     sold. A registration made pursuant to such a request shall not qualify as a
     Demand Registration hereunder until (a) the registration statement relating
     thereto has been declared effective by the SEC and (b) the Demanding
     Stockholder is able to register and sell at least 75% of the Registrable
     Securities requested to be included in such registration. The Company shall
     not be required to effect, and each of ITT, the B Holders and the Other
     Holders shall not be entitled to request, more than three registrations
     each per ITT, the B Holders and the Other Holders under this Section 5.2.

          (b) Promptly (but in no event more than ten days) after receipt of a
     request for a Demand Registration, the Company shall provide notice of such
     request to the non-Demanding Stockholders, and such non-Demanding
     Stockholder shall have the right, within 10 days after the date of receipt
     of such notice from the Company, to request that the Company include in the
     offering to which the Demand Registration relates all or a portion of such
     non-Demanding Stockholders' Registrable Securities.

                                      13

<PAGE>

          (c) The Company shall not include in any Demand Registration any
     securities that are not Registrable Securities without the prior written
     consent of the Demanding Stockholder. If a Demand Registration is an
     underwritten offering and the managing underwriters advise the Company in
     writing that, in their opinion, the number or class of Registrable
     Securities and, if permitted hereunder, other securities requested to be
     included in such offering, exceeds the number or class of Registrable
     Securities and other securities, if any, which can be sold therein without
     adversely affecting the marketability of the offering, the Company shall
     include in such Demand Registration (A) first, the number of Registrable
     Securities requested to be included in such registration by any
     Stockholders pro rata, if necessary, among such Stockholders based on the
     number of Registrable Securities owned by each such Stockholder, (B)
     second, the number of equity securities to be registered for the account of
     the Company, and (C) third, any other securities of the Company requested
     to be included in such registration pro rata, if necessary, on the basis of
     the number of such other securities owned by each holder of such other
     securities.

          (d) Notwithstanding the foregoing, if the Company shall furnish to the
     Demanding Stockholder a certificate signed by an officer of the Company
     stating that, in the reasonable good faith judgment of the Board, it would
     not be in the best interests of the Company and its stockholders for such
     registration to be effected (because the Company is engaging in or intends
     to engage in an acquisition, divestiture or other material transaction or
     due to other extraordinary events relating to the Company, but, in any
     case, not including for purposes of the Company avoiding its obligations
     hereunder), then the Company shall have the right to defer such
     registration for a period of not more than 90 days after receipt of the
     request of the Demanding Stockholder; provided, however, that (i) the
     Company shall not be entitled to defer its obligation to effect a
     registration for an aggregate of more than 180 days within any 365-day
     period and (ii) the Company shall make and communicate to the selling
     Stockholders its determinations under this paragraph in respect of a
     registration under this Section 5.2 within 15 days of the Company's receipt
     of the Demand Registration notice in respect of such registration or, to
     the extent reasonably practicable, promptly after becoming aware of such
     transaction.

          (e) The Demanding Stockholder shall select the book-running and other
     managing underwriters in connection with an offering pursuant to a Demand
     Registration, and any additional investment bankers and managers to be used
     in connection with the offering, in each case which shall be reasonably
     satisfactory to the Company.

                                      14

<PAGE>

          Section 5.3 Piggyback Registration

          (a) At any time that the Company proposes to register any shares of
     Common Stock under the 1933 Act for sale solely for cash, for its own
     account or pursuant to a Demand Registration, and the registration form to
     be used may be used for the registration of Registrable Securities (each a
     "Piggyback Registration"), the Company shall give written notice of such
     proposed registration to the Stockholders and the Non-party Holders as soon
     as practicable (but in no event less than 20 days before the anticipated
     filing date of the registration statement effecting such registration), and
     the Company shall include in any such registration by it all Registrable
     Securities with respect to which it has received written requests for
     inclusion therein within 10 days after receipt by such Stockholders or by
     such Non-party Holders of such written notice from the Company. If any
     Piggyback Registration is an underwritten offering, the Company shall
     select the book-running and other managing underwriters in connection with
     such offering and any additional investment bankers and managers to be used
     in connection with the offering.

          (b) If a Piggyback Registration is an underwritten primary
     registration on behalf of the Company, the Company shall include in such
     registration all securities requested to be included in such registration;
     provided, however, that if the managing underwriters advise the Company in
     writing that in their opinion the number or class of such securities
     requested to be included in such registration exceeds the number or class
     which can be sold in such offering without adversely affecting the
     marketability of the offering, the Company shall include in such
     registration (1) first, the securities that the Company proposes to sell,
     (2) second, to the extent Registrable Securities requested for inclusion
     therein need to be reduced as a result of such advice, the Registrable
     Securities requested to be included in such registration, pro rata among
     the Stockholders of such Registrable Securities on the basis of the number
     of Registrable Securities owned by each such Stockholder, (3) third, the
     Registrable Securities requested to be included in such registration, pro
     rata among the Non-party Holders of such Registrable Securities on the
     basis of the number of Registrable Securities owned by each such Non-party
     Holder and (4) fourth, other securities, if any, requested to be included
     in such registration, pro rata among the holders of such securities on the
     basis of the number of such securities owned by each such holder.

          (c) If a Piggyback Registration is in connection with a Demand
     Registration, the restrictions set forth in Section 5.2(c) shall apply. If
     a Piggyback Registration is an underwritten secondary registration on
     behalf of holders of securities of the Company (and is not a Demand
     Registration) and the managing underwriters advise the Company in writing
     that in

                                      15

<PAGE>

     their opinion the number or class of securities requested to be included in
     such registration exceeds the number or class which can be sold in such
     offering without adversely affecting the marketability of the offering, the
     Company shall include in such registration (1) first, the Registrable
     Securities requested to be included in such registration, pro rata among
     the Stockholders of such Registrable Securities on the basis of the number
     of Registrable Securities owned by each such Stockholder, (2) second, the
     Registrable Securities requested to be included in such registration, pro
     rata among the Non-party Holders of such Registrable Securities on the
     basis of the number of Registrable Securities owned by each such Nonparty
     Holder and (3) third, any other securities requested to be included in such
     registration not covered by clause (1) above pro rata among the holders of
     such securities on the basis of the number of such securities owned by each
     such holder.

          (d) The Company shall not be obligated to include any Registrable
     Securities in a registration statement (1) filed on Forms S-4 or S-8 or
     such other similar successor forms then in effect under the 1933 Act, (2)
     pursuant to which the Company is offering to exchange its own securities or
     (3) relating solely to dividend reinvestment plans.

          (e) Any Piggyback Registration relating to a sale of securities by the
     Company for its own account shall be managed by the Company; the Company
     shall have the power to select the managing underwriter(s) for such
     offering, and shall in consultation with the managing underwriter(s) have
     the power to determine the offering price, the underwriting discounts and
     commissions, the terms of the underwriting agreement, the timing of the
     registration and related offering, counsel to the Company, and all other
     administrative matters related to the registration and related offering. To
     the extent that the Stockholders or Non-party Holders participate in such a
     registration and related offering, such Stockholders or Non-party Holders
     shall enter into, and sell their Registrable Securities only pursuant to,
     the underwriting arranged by the Company, and shall either commit to attend
     the closing of the offering and take such other actions as may be
     reasonably necessary to effect their participation in the offering and to
     provide any assurances reasonably requested by the Company and the managing
     underwriter(s) in that regard, or shall deliver to the Company in custody
     certificates representing all Registrable Securities to be included in the
     registration and shall execute and deliver to the Company a custody
     agreement and a power of attorney, each in form and substance appropriate
     for the purpose of effecting their participation in such registration.

          Section 5.4 Registration Procedures. Subject to the limitations in
Sections 5.2 and 5.3, whenever the Stockholders or Non-party Holders have

                                      16

<PAGE>

requested that any Registrable Securities be registered pursuant to this
Agreement, the Company shall use its reasonable best efforts to effect the
registration and sale of such Registrable Securities in accordance with the
intended method of disposition thereof, and pursuant thereto the Company shall
as expeditiously as practicable:

          (a) prepare and file with the SEC a registration statement with
     respect to such Registrable Securities and use its reasonable best efforts
     to cause such registration statement to become effective;

          (b) prepare and file with the SEC such amendments and supplements to
     such registration statement and the prospectus used in connection therewith
     as may be necessary to keep such registration statement effective for the
     applicable period and comply with the provisions of the 1933 Act with
     respect to the disposition of all securities covered by such registration
     statement during such period in accordance with the intended methods of
     disposition by the sellers thereof set forth in such registration
     statement;

          (c) if requested, prior to filing such registration statement or any
     amendment or supplement thereto, furnish to the selling Stockholders and
     Non-party Holders and each managing underwriter, if any, copies thereof,
     and thereafter furnish to the selling Stockholders and Non-party Holders
     and each such underwriter, if any, such number of copies of such
     registration statement, each amendment and supplement thereto (in each case
     including without limitation all exhibits thereto and documents
     incorporated by reference therein) and the prospectus included in such
     registration statement (including without limitation each preliminary
     prospectus) as such Stockholders or Non-party Holders or such underwriter
     may reasonably request in order to facilitate the sale of the Registrable
     Securities;

          (d) use its reasonable best efforts to register or qualify such
     Registrable Securities under such other securities or blue sky laws of such
     jurisdictions as any seller reasonably requests and do any and all other
     acts and things which may be reasonably necessary or advisable to enable
     such seller to consummate the disposition in such jurisdictions of the
     Registrable Securities owned by such seller; provided, that the Company
     shall not be required to (1) qualify generally to do business in any
     jurisdiction where it would not otherwise be required to qualify but for
     this subsection, (2) subject itself to taxation in any such jurisdiction,
     or (3) consent to general service of process (i.e., service of process
     which is not limited solely to securities law violations) in any such
     jurisdiction;

          (e) notify each seller of such Registrable Securities, at any time
     when a prospectus relating thereto is required to be delivered under the

                                      17

<PAGE>

     1933 Act, of the happening of any event as a result of which the prospectus
     included in such registration statement contains an untrue statement of a
     material fact or omits any fact necessary to make the statements therein
     not misleading, and, at the request of any such seller, promptly prepare a
     supplement or amendment to such prospectus so that, as thereafter delivered
     to the purchasers of such Registrable Securities, such prospectus shall not
     contain an untrue statement of a material fact or omit to state any fact
     necessary to make the statements therein not misleading;

          (f) notify each seller of such Registrable Securities and, if
     requested by any such seller of Registrable Securities, confirm such notice
     in writing, (1) when the prospectus or any prospectus supplement or
     post-effective amendment included in such registration statement has been
     filed, and, with respect to any registration statement or any post-
     effective amendment thereto, when the same has become effective, (2) of any
     request by the SEC for amendments to such registration statement or
     amendments or supplements to the prospectus or for additional information
     relating thereto, (3) of the issuance by the SEC of any stop order
     suspending the effectiveness of the registration statement under the 1933
     Act or of the suspension by any state securities commission of the
     qualification of such Registrable Securities, as applicable, for offering
     or sale in any jurisdiction, or the initiation of any proceeding for any of
     the preceding purposes;

          (g) cause all such Registrable Securities to be listed on each
     securities exchange on which similar securities issued by the Company are
     then listed and, if not so listed, to be listed on the NASDAQ (or such
     other national securities exchange as the Board determines provides the
     best liquidity on which such Registrable Securities may be listed), if so
     requested by the holders of a majority of the Registrable Securities being
     sold, or if so requested by the managing underwriter of an offering
     pursuant to such registration statement;

          (h) provide a transfer agent and registrar for all such Registrable
     Securities not later than the effective date of such registration
     statement;

          (i) enter into such customary agreements (including without limitation
     underwriting agreements in customary form) and take all such other actions
     as the underwriters, if any, reasonably request in order to expedite or
     facilitate the disposition of such Registrable Securities;

          (j) make available for inspection by any seller of Registrable
     Securities, any underwriter participating in any disposition pursuant to
     such registration statement and any attorney, accountant or other agent re-

                                      18

<PAGE>

     tained by any such seller or underwriter, all financial and other records,
     pertinent corporate documents and properties of the Company, and cause the
     managers, officers, members, employees and independent accountants of the
     Company to supply all information reasonably requested by any such seller,
     underwriter, attorney, accountant or agent in connection with such
     registration statement;

          (k) otherwise use its reasonable best efforts to comply with all
     applicable rules and regulations of the SEC, and make available to its
     security holders, as soon as reasonably practicable, an earnings statement
     covering the period of at least twelve months beginning with the first day
     of the first full calendar quarter of the Company after the effective date
     of the registration statement, which earnings statement shall satisfy the
     provisions of Section 11(a) of the 1933 Act and Rule 158 promulgated
     thereunder;

          (l) permit any selling Stockholder or Non-party Holder (which
     Stockholder or Non-party Holder, in the Company's sole and exclusive
     judgment, might be deemed to be an underwriter or a controlling person of
     the Company) to participate in the preparation of such registration or
     comparable statement and to require the insertion therein of material,
     furnished to the Company in writing, which in the reasonable judgment of
     such Stockholder or Non-party Holder and its counsel should be included;

          (m) in the event of the issuance of any stop order suspending the
     effectiveness of a registration statement, or of any order suspending or
     preventing the use of any related prospectus or suspending the
     qualification of any securities included in such registration statement for
     sale in any jurisdiction, use its reasonable best efforts promptly to
     obtain the withdrawal of such order;

          (n) use its reasonable best efforts to cause such Registrable
     Securities covered by such registration statement to be registered with or
     approved by such other governmental agencies or authorities as may be
     necessary to enable the sellers thereof to consummate the disposition of
     such Registrable Securities;

          (o) obtain a "cold comfort" letter from the independent public
     accountants of the Company in customary form and covering such matters of
     the type customarily covered by "cold comfort" letters as the holders of a
     majority of the Registrable Securities being sold reasonably request;

          (p) cooperate, and cause its management to cooperate, in the selling
     effort of such offering, and, if the holders owning a majority of the
     Registrable Securities being sold in such offering reasonably request,
     coordinate and conduct a "road show" in connection with such offering; and

                                      19

<PAGE>

          (q) otherwise facilitate such registration and related offering.

          The Company may require the Stockholders or the Non-party Holders
promptly to furnish in writing to the Company such information regarding the
Stockholders' or the Non-party Holders' plan of distribution of the Registrable
Securities and other information as the Company may from time to time reasonably
request or as may be legally required in connection with such registration.

          Section 5.5  Registration Expenses. In connection with any Demand
Registration or Piggyback Registration, each selling Stockholder or Non-party
Holder shall be responsible for any underwriting discounts or commission that
may be payable in connection with the sale of its respective securities. The
Company shall pay all other expenses incurred in connection with such
registration, including without limitation (1) all filing fees with the SEC,
(2) fees and expenses of compliance with securities or blue sky laws (including
without limitation reasonable fees and disbursements of counsel in connection
with blue sky qualifications of the securities), (3) printing expenses, (4) the
fees and expenses incurred in connection with the listing of the securities,
(5) fees and expenses of counsel and independent certified public accountants
for the Company (including without limitation the expenses of any comfort
letters pursuant to Section 5.4(o) hereof), (6) the reasonable fees and expenses
of any additional experts retained by the Company in connection with such
registration and (7) fees and expenses of one counsel to the selling
Stockholders and Non-party Holders to be mutually agreed upon.

          Section 5.6  Indemnification by the Company. The Company agrees to
indemnify and hold harmless each person who participates as an underwriter,
each Stockholder and their respective partners, directors, officers and
employees and each person, if any, who controls any Stockholder or Non-party
Holder or underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act as follows:

          (a) against any and all losses, liabilities, claims, damages,
     judgments and reasonable expenses whatsoever, as incurred, arising out of
     any untrue statement or alleged untrue statement of a material fact
     contained in any registration statement pursuant to which Registrable
     Securities were registered under the 1933 Act, including without limitation
     all documents incorporated therein by reference, or the omission or alleged
     omission therefrom of a material fact required to be stated therein or
     necessary to make the statements therein not misleading or arising out of
     any untrue statement or alleged untrue statement of a material fact
     contained in any prospectus, including without limitation all documents
     incorporated therein by reference, or the omission or alleged omission
     therefrom of a

                                      20

<PAGE>

     material fact necessary in order to make the statements therein, in the
     light of the circumstances under which they were made, not misleading;

          (b) against any and all losses, liabilities, claims, damages,
     judgments and reasonable expenses whatsoever, as incurred, to the extent of
     the aggregate amount paid in settlement of any litigation, investigation or
     proceeding by any governmental agency or body, commenced or threatened, or
     of any other claim whatsoever based upon any such untrue statement or
     omission, or any such alleged untrue statement or omission, if such
     settlement is effected with the written consent of the Company; and

          (c) against any and all reasonable expense whatsoever, as incurred
     (including without limitation fees and disbursements of counsel), incurred
     in investigating, preparing or defending against any litigation,
     investigation or proceeding, commenced or threatened, in each case whether
     or not such person is a party, or any claim whatsoever based upon any such
     untrue statement or omission, or any such alleged untrue statement or
     omission, to the extent that any such expense is not paid under
     subparagraph (a) or (b) above;

provided, however, that this indemnity agreement (i) does not apply to any
Stockholder or Non-party Holder or underwriter with respect to any loss,
liability, claim, damage, judgment or expense to the extent arising out of any
untrue statement or alleged untrue statement of a material fact contained in any
prospectus, or the omission or alleged omission therefrom of a material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, in any such case made in reliance
upon and in conformity with written information furnished to the Company by such
Stockholder or Non-party Holder or underwriter expressly for use in a
registration statement (or any amendment thereto) or any prospectus (or any
amendment or supplement thereto) and (ii) shall not inure to the benefit of any
Stockholder or Non-party Holder or underwriter if a copy of the current
prospectus was not provided to a purchaser and such current prospectus would
have cured the defect giving rise to such loss, claim, damage, liability,
judgment or expense.

          Section 5.7  Indemnification by Stockholders. Each selling Stockholder
and Non-party Holder severally agrees to indemnify and hold harmless the
Company, each underwriter and the other selling Stockholders and Non-party
Holders, and each of their respective partners, directors, officers and
employees (including without limitation each officer of the Company who signed
the registration statement), and each person, if any, who controls the Company,
any underwriter or any other selling Stockholder or Non-party Holder within the
meaning of Section 15 of the 1933 Act, against any and all losses, liabilities,
claims, damages, judgments and expenses described in the indemnity contained in
Section 5.6 (provided that any settlement of the type described therein is
effected

                                      21

<PAGE>

with the written consent of such selling Stockholder or such Non-party Holder),
as incurred, but only with respect to untrue statements or alleged untrue
statements of a material fact contained in any prospectus or the omissions, or
alleged omissions therefrom of a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, in any such case made in reliance upon and in conformity with
written information furnished to the Company by such selling Stockholder or such
Non-party Holder expressly for use in such registration statement (or any
amendment thereto) or such prospectus (or any amendment or supplement thereto).

          Section 5.8  Conduct of Indemnification Proceedings. Each indemnified
party shall give reasonably prompt notice to each indemnifying party of any
action or proceeding commenced against it in respect of which indemnity may be
sought hereunder; provided, however, that failure so to notify an indemnifying
party shall not relieve such indemnifying party from any liability which it may
have under this indemnity agreement, except to the extent that the indemnifying
party is materially prejudiced by such failure to give notice. If the
indemnifying party so elects within a reasonable time after receipt of such
notice, such indemnifying party may assume the defense of such action or
proceeding at such indemnifying party's expense with counsel chosen by the
indemnifying party and approved by the indemnified party defendant in such
action or proceeding, which approval shall not be unreasonably withheld;
provided, however, that, if such indemnified party determines in good faith that
a conflict of interest exists and that therefore it is advisable for such
indemnified party to be represented by separate counsel or that, upon advice of
counsel, there may be legal defenses available to it which are different from or
in addition to those available to the indemnifying party, then the indemnifying
party shall not be entitled to assume such defense and the indemnified party
shall be entitled to separate counsel (limited in each jurisdiction to one
counsel for all underwriters and another counsel for all other indemnified
parties under this Agreement) at the indemnifying party's expense. If an
indemnifying party is not so entitled to assume the defense of such action or
does not assume such defense, after having received the notice referred to in
the first sentence of this paragraph, the indemnifying party will pay the
reasonable fees and expenses of counsel for the indemnified party (limited in
each jurisdiction to one counsel for all underwriters and another counsel for
all other indemnified parties under this Agreement). No indemnifying party will
be liable for any settlement effected without the written consent of such
indemnifying party, which consent shall not be unreasonably withheld. If an
indemnifying party is entitled to assume, and assumes, the defense of such
action or proceeding in accordance with this paragraph, such indemnifying party
shall not, except as otherwise provided in this Section 5.8, be liable for any
fees and expenses of counsel for the indemnified party incurred thereafter in
connection with such action or proceeding.

                                      22

<PAGE>

          Section 5.9  Contribution.

          (a) In order to provide for just and equitable contribution in
     circumstances in which the indemnity agreement provided for in Sections 5.6
     through 5.8 is for any reason held to be unenforceable by the indemnified
     parties although applicable in accordance with its terms in respect of any
     losses, liabilities, claims, damages, judgments and expenses suffered by an
     indemnified party referred to therein, each applicable indemnifying party,
     in lieu of indemnifying such indemnified party, shall contribute to the
     amount paid or payable by such indemnified party as a result of such
     losses, liabilities, claims, damages, judgments and expenses in such
     proportion as is appropriate to reflect the relative fault of the Company
     on the one hand and of the liable selling Stockholders and Non-party
     Holders (including without limitation, in each case, that of their
     respective officers, directors, employees and agents) on the other in
     connection with the statements or omissions which resulted in such losses,
     liabilities, claims, damages, judgments or expenses, as well as any other
     relevant equitable considerations. The relative fault of the Company on the
     one hand and of the liable selling Stockholders and Non-party Holders
     (including without limitation, in each case, that of their respective
     officers, directors, employees and agents) on the other shall be determined
     by reference to, among other things, whether the untrue or alleged untrue
     statement of a material fact or the omission or alleged omission to state a
     material fact relates to information supplied by the Company, on the one
     hand, or by or on behalf of the selling Stockholders and Non-party Holders,
     on the other, and the parties' relative intent, knowledge, access to
     information and opportunity to correct or prevent such statement or
     omission. The amount paid or payable by a party as a result of the losses,
     liabilities, claims, damages, judgments and expenses referred to above
     shall be deemed to include, subject to the limitations set forth in
     Section 5.8, any legal or other fees or expenses reasonably incurred by
     such party in connection with investigating or defending any action or
     claim.

          (b) The parties agree that it would not be just and equitable if
     contribution pursuant to this Section 5.9 were determined by pro rata
     allocation or by any other method of allocation which does not take account
     of the equitable considerations referred to in subparagraph (a) above.
     Notwithstanding the provisions of this Section 5.9, in the case of
     distributions to the public, an indemnifying Stockholder or Non-party
     Holder shall not be required to contribute any amount in excess of the
     amount by which (A) the total price at which the Registrable Securities
     sold by such indemnifying Stockholder or Non-party Holder and its
     affiliated indemnifying Stockholders and Non-party Holders and distributed
     to the public were offered to the public exceeds (B) the amount of any
     damages which such indemnifying Stockholder or Non-party Holder has
     otherwise been required

                                      23

<PAGE>

     to pay by reason of such untrue or alleged untrue statement or omission or
     alleged omission. No person guilty of fraudulent misrepresentation (within
     the meaning of Section 11(f) of the 1933 Act) shall be entitled to
     contribution from any person who was not guilty of such fraudulent
     misrepresentation.

          (c) For purposes of Section 5.6 through this Section 5.9, each person,
     if any, who controls a Stockholder or Non-party Holder or an underwriter
     within the meaning of Section 15 of the 1933 Act (and their respective
     partners, directors, officers and employees) shall have the same rights to
     contribution as such Stockholder or Non-party Holder or underwriter; and
     each director of the Company, each officer of the Company who signed the
     registration statement, and each person, if any, who controls the Company
     within the meaning of Section 15 of the 1933 Act, shall have the same
     rights to contribution as the Company.

          Section 5.10  Participation in Underwritten Registrations. No
Stockholder or Non-party Holder may participate in any underwritten registered
offering contemplated hereunder unless such Stockholder or Non-party Holder
(a) agrees to sell its securities on the basis provided in any underwriting
arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements, lock-up agreements and other
documents reasonably required under the terms hereof and of such underwriting
arrangements.

          Section 5.11  Rule 144. The Company covenants that from and after an
Initial Public Offering it shall file any reports required to be filed by it
under the 1933 Act and the 1934 Act and that it shall take such further action
as the Stockholders or Non-party Holders may reasonably request, all to the
extent required from time to time to enable the Stockholders or Non-party
Holders to sell Registrable Securities without registration under the 1933 Act
within the limitation of the exemptions provided by Rule 144 under the 1933 Act,
as such rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC. Upon the request of any Stockholder or Non-party
Holder, the Company shall promptly deliver to the Stockholders and Non-party
Holders a written statement as to whether it has complied with such
requirements.

          Section 5.12  Holdback Agreements.

          (a) To the extent not inconsistent with applicable law, each
     Stockholder and Non-party Holder agrees not to effect any public sale or
     distribution (including without limitation sales pursuant to Rule 144) of
     equity securities of the Company or any securities convertible into or
     exchangeable or exercisable for such securities, during the seven days
     prior to and the period of up to 180 days beginning on the effective date
     of any Demand Registration or Piggyback Registration for a public offering
     to be

                                      24

<PAGE>

     underwritten on a firm commitment basis in which Registrable Securities are
     included (except as part of such underwritten registration), unless the
     underwriters managing the registered public offering otherwise agree.

          (b) The Company agrees (1) not to effect any public sale or
     distribution (including without limitation sales pursuant to Rule 144) of
     its equity securities or any securities convertible into or exchangeable or
     exercisable for such equity securities, during the seven days prior to and
     the period of up to 180 days beginning on the effective date of any Demand
     Registration or Piggyback Registration for a public offering to be
     underwritten on a firm commitment basis in which Registrable Securities are
     included (except as part of such underwritten registration or pursuant to
     registrations on Forms S-4 or S-8 or any successor forms), unless the
     underwriters managing the registered public offering otherwise agree, and
     (2) to use its reasonable best efforts to cause each other stockholder of
     at least 5% of the Fully-Diluted Shares to agree not to effect any public
     sale or distribution (including without limitation sales pursuant to Rule
     144) of any such securities during such period (except as part of such
     underwritten registration, if otherwise permitted), unless the underwriters
     managing the registered public offering otherwise agree.

                                  ARTICLE VI

                        REPRESENTATIONS AND WARRANTIES
                        ------------------------------

          Section 6.1  Representations and Warranties of the Company. The
Company represents and warrants to each of MS, CapRe and ITT as follows:

          (a) Organization. The Company is a corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware.

          (b) Authority. The Company has full corporate power and authority to
     execute and deliver this Agreement and to consummate the transactions
     contemplated on its part hereby. The execution, delivery and performance by
     the Company of this Agreement and the consummation of the transactions
     contemplated hereby have been duly authorized by all necessary action on
     the part of the Company. No other action on the part of the Company is
     necessary to authorize the execution and delivery of this Agreement by the
     Company or the performance by the Company of its obligations hereunder.
     This Agreement has been duly executed and delivered by the Company and
     constitutes a legal, valid and binding agreement of the Company,
     enforceable against it in accordance with its terms, subject to applicable
     bankruptcy, insolvency, moratorium, reorganization or similar laws
     affecting creditors' rights generally and subject to general

                                      25

<PAGE>

     equitable principles (regardless of whether such enforceability is
     considered in a proceeding in equity or at law).

          (c) No Violation. The execution and delivery of this Agreement by the
     Company, the performance by the Company of its obligations hereunder and
     the consummation by the Company of the transactions contemplated hereby,
     will not (i) violate any provision of law, rule, regulation, order, writ,
     judgment, injunction, decree, determination or award applicable to the
     Company, (ii) require the consent, waiver, approval, license or
     authorization of or any filing by the Company with any governmental
     authority (other than any filings required under the 1934 Act) or (iii)
     violate, result (with or without notice or the passage of time, or both) in
     a breach of or give rise to the right to accelerate, terminate or cancel
     any obligation under or constitute (with or without notice or the passage
     of time, or both) a default under, any of the terms or provisions of any
     charter document or bylaw, agreement, note, indenture, mortgage, contract,
     order, judgment, ordinance, regulation or decree to which the Company is
     subject or by which the Company is bound and which would have a material
     adverse effect on the ability of the Company to perform its obligations
     under this Agreement.

          Section 6.2  MS Representations and Warranties. MS represents and
warrants to each of the Company, CapRe and ITT as follows:

          (a) Authority. MS has full power and authority to execute and deliver
     this Agreement and to consummate the transactions contemplated on its part
     hereby. This Agreement has been duly executed and delivered by MS and
     constitutes a legal, valid and binding agreement of MS, enforceable against
     it in accordance with its terms, subject to applicable bankruptcy,
     insolvency, moratorium, reorganization or similar laws affecting creditors'
     rights generally and subject to general equitable principles (regardless of
     whether such enforceability is considered in a proceeding in equity or at
     law).

          (b) No Violation. The execution and delivery of this Agreement by MS,
     the performance by MS of its obligations hereunder and the consummation by
     MS of the transactions contemplated hereby will not (i) violate any
     provision of law, rule, regulation, order, writ, judgment, injunction,
     decree, determination or award applicable to MS, (ii) require the consent,
     waiver, approval, license or authorization of or any filing by MS with any
     governmental authority (other than any filings required under the 1934 Act)
     or (iii) violate, result (with or without notice or the passage of time, or
     both) in a breach of or give rise to the right to accelerate, terminate or
     cancel any obligation under or constitute (with or without notice or the
     passage of time, or both) a default under, any of the terms or provi-

                                      26

<PAGE>

     sions of any charter document or bylaw, agreement, note, indenture,
     mortgage, contract, order, judgment, ordinance, regulation or decree to
     which MS is subject or by which MS is bound and which would have a material
     adverse effect on the ability of MS to perform its obligations under this
     Agreement.

          Section 6.3 CapRe Representations and Warranties. CapRe represents and
warrants to each of the Company, MS and ITT as follows:

          (a) Authority. CapRe has full power and authority to execute and
     deliver this Agreement and to consummate the transactions contemplated on
     its part hereby. This Agreement has been duly executed and delivered by
     CapRe and constitutes a legal, valid and binding agreement of CapRe,
     enforceable against it in accordance with its terms, subject to applicable
     bankruptcy, insolvency, moratorium, reorganization or similar laws
     affecting creditors' rights generally and subject to general equitable
     principles (regardless of whether such enforceability is considered in a
     proceeding in equity or at law).

          (b) No Violation. The execution and delivery of this Agreement by
     CapRe, the performance by CapRe of its obligations hereunder and the
     consummation by CapRe of the transactions contemplated hereby will not (i)
     violate any provision of law, rule, regulation, order, writ, judgment,
     injunction, decree, determination or award applicable to CapRe, (ii)
     require the consent, waiver, approval, license or authorization of or any
     filing by CapRe with any governmental authority (other than any filings
     required under the 1934 Act) or (iii) violate, result (with or without
     notice or the passage of time, or both) in a breach of or give rise to the
     right to accelerate, terminate or cancel any obligation under or constitute
     (with or without notice or the passage of time, or both) a default under,
     any of the terms or provisions of any agreement, note, indenture, mortgage,
     contract, order, judgment, ordinance, regulation or decree to which CapRe
     is subject or by which CapRe is bound and which would have a material
     adverse effect on the ability of CapRe to perform its obligations under
     this Agreement.

          Section 6.4 ITT Representations and Warranties. ITT represents and
warrants to each of the Company, MS and CapRe as follows:

          (a) Authority. ITT has full power and authority to execute and deliver
     this Agreement and to consummate the transactions contemplated on its part
     hereby. This Agreement has been duly executed and delivered by ITT and
     constitutes a legal, valid and binding agreement of ITT, enforceable
     against it in accordance with its terms, subject to applicable bankruptcy,
     insolvency, moratorium, reorganization or similar laws af-

                                      27

<PAGE>

     fecting creditors' rights generally and subject to general equitable
     principles (regardless of whether such enforceability is considered in a
     proceeding in equity or at law).

          (b) No Violation. The execution and delivery of this Agreement by ITT,
the performance by ITT of its obligations hereunder and the consummation by ITT
of the transactions contemplated hereby will not (i) violate any provision of
law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award applicable to ITT, (ii) require the consent, waiver, approval, license
or authorization of or any filing by ITT with any governmental authority (other
than any filings required under the 1934 Act) or (iii) violate, result (with or
without notice or the passage of time, or both) in a breach of or give rise to
the right to accelerate, terminate or cancel any obligation under or constitute
(with or without notice or the passage of time, or both) a default under, any of
the terms or provisions of any agreement, note, indenture, mortgage, contract,
order, judgment, ordinance, regulation or decree to which ITT is subject or by
which ITT is bound and which would have a material adverse effect on the ability
of ITT to perform its obligations under this Agreement.

                                  ARTICLE VII

                              GENERAL PROVISIONS
                              ------------------

     Section 7.1 License Activities.

     (a) Notwithstanding anything to the contrary contained in this Agreement,
the Recap Agreement or the certificates of designations of any series of
preferred stock of the Company, neither the Company nor any party hereto shall,
without first obtaining the approval or consent of the FCC, take any action
pursuant to this Agreement, the Recap Agreement or the certificates of
designations of any series of preferred stock of the Company which would be
reasonably likely to cause or result in any acquisition or transfer of ownership
of the Company or its assets, assignment of any FCC License or any change of
control that would require, under then existing law (including the
Communications Act of 1934, as amended), the prior approval of the FCC;
provided, however, that the preceding clause shall not preclude any of MS, CapRe
or ITT, as the case may be, from exercising its rights under Article III of this
Agreement, Articles 5. 1 (a) and (b) of the Recap Agreement and Article IV,
Sections B(7)(d) and C(7)(d) of the Amended and Restated Certificate of
Incorporation of the Company.

     (b) In the event the FCC Approval has not been received by the Company on
or prior to October 31, 1999, the Company, promptly upon

                                      28

<PAGE>

     the request of each of ITT, MS and CapRe, shall take all actions as are
     reasonably necessary to surrender or abandon the FCC Licenses.

          Section 7.2 Termination. This Agreement shall terminate upon the
earliest to occur of

          (a) a mutual agreement among all the parties hereto to terminate this
     Agreement;

          (b) as to any of ITT, MS or CapRe, at such time as such party ceases
     to own any shares of New Series A Preferred Stock, in the case of ITT, or
     New Series B Preferred Stock, in the case of MS and CapRe, or any shares of
     New Common Stock into which such shares of New Series A Preferred Stock or
     New Series B Preferred Stock shall be converted; provided, however, that
     the provisions hereof will continue to apply to any Permitted Transferees
     of ITT, MS or CapRe even after such provisions terminate with respect to
     such parties; and

          (c) March 31, 2009.

          Section 7.3 Counterparts. This Agreement may be executed in one or
more counterparts, all of which shall be considered one and the same agreement,
and shall become effective when one or more counterparts have been signed by
each of the parties and delivered to the other parties. Copies of executed
counterparts transmitted by telecopy, telefax. or other electronic transmission
service shall be considered original executed counterparts for purposes of this
Section, provided receipt of copies of such counterparts is confirmed.

          Section 7.4 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO THE CHOICE OF LAW PRINCIPLES THEREOF.

          Section 7.5 Entire Agreemment. Except for any agreements,
understanding, representations or warranties set forth in the Recap Agreement,
this Agreement contains the entire agreement between the parties with respect to
the subject matter hereof and there are no agreements, understandings,
representations or warranties between the parties other than those set forth or
referred to herein. This Agreement is not intended to confer upon any person not
a party hereto (and their successors and assigns) any rights or remedies
hereunder.

          Section 7.6 Specific Performance. The parties hereto each acknowledge
that, in view of the uniqueness of arrangements contemplated by this Agreement,
the parties hereto would not have an adequate remedy at law for money damages in
the event that this Agreement were not performed in accordance with its terms,
and therefore agree that the parties hereto shall be entitled to

                                      29

<PAGE>

specific enforcement of the terms hereof in addition to any other remedy to
which the parties hereto may be entitled at law or in equity.

          Section 7.7 Notices. All notices, requests, demands or other
communications required by or otherwise with respect to this Agreement shall be
in writing and shall be deemed to have been duly given to any party when
delivered by hand, by messenger, or by a nationally recognized overnight
delivery company, when delivered by telecopy and confirmed by return telecopy,
or when delivered by first-class mail, postage prepaid and return receipt
requested, in each case to the applicable addresses set forth below (or such
other addresses as a party may designate by written notice to each other party).

          (a) Notices to the Company shall be addressed to:

                    EarthWatch Incorporated
                    1900 Pike Road
                    Longmont, Colorado 80501-6700
                    Telecopy: (303) 682-3808
                    Attention: Herbert F. Satterlee, III

          with a copy to:

                    Cooley Godward LLP
                    2595 Canyon Boulevard, Suite 250
                    Boulder, Colorado 80302-6737
                    Telecopy: (303) 546-4099
                    Attention: James C.T. Linfield, Esq.

          (b) Notices to MS shall be addressed to:

                    Morgan Stanley & Co., Incorporated
                    1585 Broadway
                    New York, New York 10036
                    Telecopy: (212) 761-0672
                    Attention: Michael Petrick

          with a copy to:

                    Wachtell, Lipton, Rosen & Katz
                    51 West 52nd Street
                    New York, New York 10019
                    Telecopy: (212) 403-2000
                    Attention: Scott K. Charles, Esq.

                                      30

<PAGE>

          (c) Notices to CapRe shall be addressed to:

                    Capital Research and Management Company
                    11100 Santa Monica Blvd., Suite 1500
                    Los Angeles, California 90025
                    Telecopy: (310) 996-6022
                    Attention: David Daigle

          with a copy to:

                    Wachtell, Lipton, Rosen & Katz
                    51 West 52nd Street
                    New York, New York 10019
                    Telecopy: (212) 403-2000
                    Attention: Scott K. Charles, Esq.

          (d) Notices to ITT shall be addressed to:

                    ITT Industries, Inc.
                    4 West Red Oak Lane
                    White Plains, New York 10604
                    Telecopy: (914) 696-2963
                    Attention: Martin Kamber

          with a copy to:

                    Simpson Thacher & Bartlett
                    425 Lexington Avenue
                    New York, New York 10017
                    Telecopy: (212) 455-2502
                    Attention: Gary L. Sellers, Esq.

          Section 7.8 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors; provided, however, that except as set forth in the next sentence, no
party may assign its rights and obligations hereunder. Each party may assign its
rights and obligations hereunder to one or more majority-owned, direct or
indirect subsidiaries or other Affiliates.

          Section 7.9 Headings. The Section, Article and other headings
contained in this Agreement are inserted for convenience of reference only and
will not affect the meaning or interpretation of this Agreement. All references
to Sections or Articles contained herein mean Sections or Articles of this
Agreement unless otherwise stated.

                                      31

<PAGE>

          Section 7.10 Amendments and Waivers. This Agreement may not be
modified or amended except by an instrument or instruments in writing signed by
the parties against whom enforcement of any such modification or amendment is
sought; provided, however, that the provisions set forth in Article V may be
amended by an instrument or instruments in writing signed by a majority of the
holders of the shares of each of the Series A Preferred Stock, the Series B
Preferred Stock and the Series C Preferred Stock. Any party hereto may, only by
an instrument in writing, waive compliance by the other parties hereto with any
term or provision hereof on the part of such other parties hereto to be
performed or complied with. The waiver by any party hereto of a breach of any
term or provision hereof shall not be construed as a waiver of any subsequent
breach.

          Section 7.11 Interpretation; Absence of Presumption.

          (a) For the purposes hereof, (i) words in the singular shall be held
     to include the plural and vice versa and words of one gender shall be held
     to include the other gender as the context requires, (ii) the terms
     "hereof," "herein," and "herewith" and words of similar import shall,
     unless otherwise stated, be construed to refer to this Agreement as a whole
     and not to any particular provision of this Agreement, and Article, Section
     and paragraph references are to the Articles, Sections and paragraphs to
     this Agreement unless otherwise specified, (iii) the word "including" and
     words of similar import when used in this Agreement shall mean "including,
     without limitation," unless the context otherwise requires or unless
     otherwise specified, (iv) the word "or" shall not be exclusive, and (v)
     provisions shall apply, when appropriate, to successive events and
     transactions.

          (b) This Agreement shall be construed without regard to any
     presumption or rule requiring construction or interpretation against the
     party drafting or causing any instrument to be drafted.

          Section 7.12 Severability. Any provision hereof which is invalid or
unenforceable shall be ineffective to the extent of such invalidity or
unenforceability, without affecting in any way the remaining provisions hereof.

          Section 7.13 Further Assurances. The parties hereto agree that, from
time to time, each of them will, and will cause their respective Affiliates to,
execute and deliver such further instruments and take such other action as may
be necessary to carry out the purposes and intents hereof.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      32

<PAGE>

          IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                                      EARTHWATCH INCORPORATED

                                      By:    /S/ Herbert F. Satterlee
                                         ---------------------------------------
                                          Name:  Herbert F. Satterlee
                                          Title: President and CEO

                                      MORGAN STANLEY & CO., INCORPORATED

                                      By:    /S/ Michael Petrick
                                         ---------------------------------------
                                          Name:  Michael Petrick
                                          Title: Managing Director

                                      AMERICAN HIGH-INCOME TRUST
                                      By Capital Research and Management Company

                                      By:   /S/ Paul G. Haaga, Jr.
                                         ---------------------------------------
                                          Name:  Paul G. Haaga, Jr.
                                          Title: Executive Vice President

                                      AMERICAN VARIABLE INSURANCE SERIES ASSET
                                      ALLOCATION FUND
                                      By Capital Research and Management Company

                                      By:    /S/ Paul G. Haaga
                                         ---------------------------------------
                                          Name:  Paul G. Haaga
                                          Title: Executive Vice President

                                      AMERICAN VARIABLE INSURANCE SERIES BOND
                                      FUND
                                      By Capital Research and Management Company

                                      By:    /S/ Paul G. Haaga
                                         ---------------------------------------
                                          Name:  Paul G. Haaga
                                          Title: Executive Vice President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

                                      AMERICAN VARIABLE INSURANCE SERIES HIGH-
                                      YIELD BOND FUND
                                      By Capital Research and Management Company

                                      By:    /S/ Paul G. Haaga, Jr.
                                         ---------------------------------------
                                          Name:  Paul G. Haaga, Jr.
                                          Title: Executive Vice President

                                      THE BOND FUND OF AMERICA, INC.
                                      By Capital Research and Management Company

                                      By:    /S/ Paul G. Haaga, Jr.
                                         ---------------------------------------
                                          Name:  Paul G. Haaga, Jr.
                                          Title: Executive Vice President

                                      ITT INDUSTRIES, INC.

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

                                      ------------------------------------------

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

          IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                                      EARTHWATCH INCORPORATED

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

                                      MORGAN STANLEY & CO., INCORPORATED

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

                                      CAPITAL RESEARCH AND MANAGEMENT
                                        COMPANY

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

                                      ITT INDUSTRIES, INC.

                                      By:    /S/ Martin Kamber
                                         ------------------------------
                                         Name:  Martin Kamber
                                         Title: Senior Vice President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

                                      AMERICAN VARIABLE INSURANCE SERIES HIGH-
                                      YIELD BOND FUND
                                      By Capital Research and Management Company

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

                                      THE BOND FUND OF AMERICA, INC.
                                      By Capital Research and Management Company

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

                                      ITT INDUSTRIES, INC.

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

                                      BALL TECHNOLOGIES HOLDINGS CORP.
                                      ------------------------------------------

                                      By:    /S/ Donald W. Vanlandingham
                                         ---------------------------------------
                                          Name:  Donald W. Vanlandingham
                                          Title: President

                                      ------------------------------------------

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

                                      ------------------------------------------

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of the
parties hereto as of the day first above written.

                                      EARTHWATCH INCORPORATED

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

                                      MORGAN STANLEY & CO., INCORPORATED

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

                                      CAPITAL RESEARCH AND MANAGEMENT COMPANY,
                                       for the benefit of American High-Income
                                       Trust, American Variable Insurance Series
                                       High-Yield Bond Fund and Bond Fund of
                                       America, Inc.

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

                                      ITT INDUSTRIES, INC.

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

                                      SERIES C PREFERRED STOCKHOLDER
                                      Alta V Limited Partnership
                                      By: Alta V Management Partners, L.P.

                                      By: /s/ [ SIGNATURE ILLEGIBLE]^^
                                         ---------------------------------------
                                                     General Partner

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 Customs House Partners

                               By: /s/ [SIGNATURE ILLEGIBLE]^^
                                  -----------------------------
                                     Under Power of Attorney

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Amedeo Natali
                                  -----------------------------
                                  Name:  Amedeo Natali
                                  Title: Director General Telespazio S.P.A.

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 CEDC & Co. c/o Bankers Trust DTC #903 on behalf
                                 of CM Capital for benefit of LA Fire & Police

                               By:
                                  -----------------------------
                                  Name:  Jeff Donohue
                                  Title: Asst Treasurer
                                         B7 Sepuiues TN

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ [SIGNATURE ILLEGIBLE]^^
                                  -----------------------------
                                  Name:  [ILLEGIBLE COPY]
                                  Title: General Partner

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Williams Jones
                                  --------------------------------
                                  Name:
                                  Title: President of Williams Jones &
                                         Assoc. Inc discretionary manager
                                         of PDC Fund

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Rafael Fogul
                                  --------------------------------
                                  Name: Rafael Fogul
                                  Title: Authorized Agent

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 Oppenheimer Strategic Income Fund

                               By: /s/ David Negri
                                  --------------------------------
                                  Name: David Negri
                                  Title: Vice President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 Oppenheimer High Yield Fund

                               By: /s/ David Negri
                                  -----------------------------
                                  Name:  David Negri
                                  Title: Vice President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 Oppenheimer Champion Income Fund

                               By: /s/ David Negri
                                  -----------------------------
                                  Name:  David Negri
                                  Title: Vice President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 Oppenheimer Strategic Bond Fund for its
                                 Variable Accounts Funds

                               By: /s/ David Negri
                                  -----------------------------
                                  Name:  David Negri
                                  Title: Vice President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

                             SERIES C PREFERRED STOCKHOLDERS

                             Morgan Guaranty Trust Company of New York,
                              as Trustee of the Commingled Pension Trust Fund
                              (Multi-Market Special Investment Fund II)
                              of Morgan Guaranty Trust Company of New York

                             By: /s/ Robert B. Ross
                                --------------------------------
                                Name: Robert B. Ross
                                Title: Vice President

                             Morgan Guaranty Trust Company of New York,
                              as Investment Manager and Agent for The Alfred P.
                              Sloan Foundation (Multi-Market Account)

                             By: /s/ Robert B. Ross
                                --------------------------------
                                Name: Robert B. Ross
                                Title: Vice President

                             Morgan Guaranty Trust Company of New York,
                              as Trustee of the Multi-Market Special Investment
                              Trust Fund of Morgan Guaranty Trust Company
                              of New York

                             By: /s/ Robert B. Ross
                                --------------------------------
                                Name: Robert B. Ross
                                Title: Vice President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]
<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Gerald B. Untomor
                                  -----------------------------
                                  Name:  Gerald B. Untomor
                                  Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By: /s/ Alexander S. Lushtak
                                -------------------------------------------
                                Name:  Alexander S. Lushtak
                                Title: Individual

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 Alta V Limited Partnership

                               By: Alta V Management Partners, L.P.

                               By: /s/ [SIGNATURE ILLEGIBLE]^^
                                  -----------------------------
                                         General Partner

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Andrew Hoffman
                                ----------------------------------------
                                Name:  Andrew Hoffman
                                Title: Informaton Systems Manager

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Blaine Blaesing
                                ----------------------------------------
                                Name:  Blaine Blaesing
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Cheih Chang
                                ----------------------------------------
                                Name:  Chieh Chang
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ David W. Thompson
                                ----------------------------------------
                                Name:  David W. Thompson
                                Title: CEO and President

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER
                                 Customs House Partners

                               By: /s/ Elaine Walker
                                  -----------------------------
                                     Under Power of Attorney

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER
                               Datron/Transco Inc.

                             By:     /s/ William L. Stephan
                                -----------------------------------------
                                Name:  William L. Stephan
                                Title: Secretary/Treasurer

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ David J. Pabley 3/31/1999
                                ----------------------------------------
                                Name:  David J. Pabley
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Debbie Foudray
                                  -----------------------------
                                  Name:  Debbie Foudray
                                  Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Debra J. Heimmermann
                                  -----------------------------
                                  Name:  Debra J. Heimmermann
                                  Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Denise J. Winslow
                                ----------------------------------------
                                Name:  Denise J. Winslow
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Donald H. Ferguson
                                  -----------------------------
                                  Name:  Donald H. Ferguson
                                  Title: Shareholder

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                            EARTHWATCH INCORPORATED

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

                            MORGAN STANLEY & CO., INCORPORATED

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

                            CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                            ITT INDUSTRIES, INC.

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

                            SERIES C PREFERRED STOCKHOLDER

                            By:     /s/ Donovan B. Hicks
                               ----------------------------------------
                               Name:  Donovan B. Hicks
                               Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                               benefit of American High-Income Trust, American
                               Variable Insurance Series High-Yield Bond Fund
                               and Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Douglas B. Gerull
                                ----------------------------------------
                                Name:  Douglas B. Gerull
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                               benefit of American High-Income Trust, American
                               Variable Insurance Series High-Yield Bond Fund
                               and Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Earl D. McNamee
                                ----------------------------------------
                                Name:  Earl D. McNamee
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                               benefit of American High-Income Trust, American
                               Variable Insurance Series High-Yield Bond Fund
                               and Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Robert R. Tillman
                                ----------------------------------------
                                Name:  Robert R. Tillman, as trustee
                                       of the Alexander S. Lushtak
                                       Gift Trust dated 11/20/92
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]
<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Eric Parker
                                ----------------------------------------
                                Name:  Eric Parker
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ G. Richard Wirtenson

                               By: /s/ Helen M. Wirtenson
                                  -----------------------------
                                  Names: G. Richard Wirtenson
                                         Helen M. Wirtenson
                                  Title: Trustees of the Wirtenson
                                         Family Trust

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto as of the day first above written.

                             EARTHWATCH INCORPORATED

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

                             MORGAN STANLEY & CO., INCORPORATED

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

                             CAPITAL RESEARCH AND MANAGEMENT COMPANY, for the
                              benefit of American High-Income Trust, American
                              Variable Insurance Series High-Yield Bond Fund and
                              Bond Fund of America, Inc.

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

                             ITT INDUSTRIES, INC.

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

                             SERIES C PREFERRED STOCKHOLDER

                             By:     /s/ Gordon Yue 3/31/99
                                ----------------------------------------
                                Name:  Gordon Yue
                                Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                               EARTHWATCH INCORPORATED

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

                               MORGAN STANLEY & CO., INCORPORATED

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

                               CAPITAL RESEARCH AND MANAGEMENT
                                 COMPANY, for the benefit of American
                                 High-Income Trust, American Variable Insurance
                                 Series High-Yield Bond Fund and Bond Fund of
                                 America, Inc.

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

                               ITT INDUSTRIES, INC.

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

                               SERIES C PREFERRED STOCKHOLDER

                               By: /s/ Gregory P. Lim
                                  -----------------------------
                                  Name:  Gregory P. Lim
                                  Title:

                  [SIGNATURE PAGE TO STOCKHOLDERS' AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]