Document:

EXHIBIT 4.2

                          FIBERNET TELECOM GROUP, INC.

                           FIRST AMENDED AND RESTATED

                           INVESTOR'S RIGHTS AGREEMENT

                                November 11, 2002

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

1.    Definitions............................................................1

2.    Registration Rights....................................................4
      2.1   Shelf Registration...............................................4
      2.2   Company Registration.............................................5
      2.3   Obligations of the Company.......................................6
      2.4   Furnish Information..............................................8
      2.5   Expenses of Registration.........................................8
      2.6   Delay of Registration............................................8
      2.7   Indemnification..................................................8
      2.8   Reports Under Securities Exchange Act of 1934...................10
      2.9   Assignment of Registration Rights...............................11
      2.10  Limitations on Subsequent Registration Rights...................11
      2.11  Market-Standoff Agreement.......................................11
      2.12  Termination of Registration Rights..............................12

3.    Transfer Restrictions.................................................12
      3.1   Restrictions on Transfer........................................12
      3.2   Right of First Offer............................................12

4.    Miscellaneous.........................................................14
      4.1   Legends.........................................................14
      4.2   Entire Agreement................................................14
      4.3   Recapitalizations, Etc..........................................14
      4.4   Successors and Assigns..........................................15
      4.5   Amendments and Waivers..........................................15
      4.6   Notices.........................................................15
      4.7   Severability....................................................15
      4.8   Delays or Omissions; Remedies Cumulative........................15
      4.9   Attorney's Fees.................................................16
      4.10  Governing Law...................................................16
      4.11  Counterparts....................................................16
      4.12  Interpretation..................................................16

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                          FIBERNET TELECOM GROUP, INC.
                           FIRST AMENDED AND RESTATED
                           INVESTOR'S RIGHTS AGREEMENT
                           ---------------------------

     This First Amended and Restated Investor's Rights Agreement (this
"Agreement") is made as of November 11, 2002, between FiberNet Telecom Group,
Inc., a Delaware corporation (the "Company") and the investors listed on Exhibit
A hereto, each of which is herein referred to as an "Investor".

                                    RECITALS
                                    --------

     Pursuant to a Purchase Agreement among the Company and the Investors dated
October 30, 2002 (the "Old Purchase Agreement"), the Investors purchased from
the Company, and the Company sold to the Investors, upon the terms and subject
to the conditions set forth therein, shares of the Common Stock, par value
$0.001 per share, and warrants of the Company to purchase shares of Common Stock
(the "Old Warrants");

     The Company and the Investors have entered into a Common Stock and Warrant
Purchase Agreement (the "Purchase Agreement") of even date herewith pursuant to
which the Company desires to sell to the Investors, and the Investors desire to
purchase from the Company, shares of the Company's Common Stock and warrants to
purchase an additional amount of such shares (the "New Warrants" and together
with the Old Warrants, the "Warrants"). A condition to the Investors'
obligations under the Purchase Agreement is that the Company and the Investors
enter into this Agreement in order to provide the Investors with certain rights
to register shares of the Company's Common Stock. The Company desires to induce
the Investors to purchase shares of Common Stock pursuant to the Purchase
Agreement by agreeing to the terms and conditions set forth herein.

                                    AGREEMENT
                                    ---------

     The parties agree as follows:

     1. Definitions.

     For purposes of this Agreement:

     (a) "Business Day" means a day other than a Saturday or Sunday or any
federal holiday.

     (b) "Common Stock" means the common stock, par value $0.001, of the
Company.

     (c) "Credit Agreement" means the Company's Amended and Restated Credit
Agreement dated as of February 9, 2001 (as amended, supplemented, amended and
restated or otherwise modified from time to time) among FiberNet Operations,
Inc., Devnet, L.L.C., the financial institutions from time to time parties
thereto as lenders, Deutsche Bank AG

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New York Branch, as administrative agent, Toronto Dominion (USA) Securities
Inc., as syndication agent, and Wachovia Investors, Inc., as documentation
agent.

     (d) "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     (e) "Exempt Registration" means (i) a registration statement relating to
the sale of securities by the Company pursuant to a stock option, stock purchase
or similar benefit plan or an SEC Rule 145 transaction or (ii) a registration
statement filed by the Company pursuant to the terms of the New Equity
Registration Rights Agreement.

     (f) "Form S-3" means such form under the Securities Act as in effect on the
date hereof or any successor form under the Securities Act that is intended to
be used as a short form for the registration of distributions of secondary
shares.

     (g) "New Equity Registration Rights Agreement" means the Registration
Rights Agreement dated as of October 30, 2002, by and among the Company and the
purchasers listed on Schedule I thereto as in effect on the date hereof.

     (h) "Nortel Note Exchange Agreement" means the Note Exchange Agreement,
dated as of October 30, 2002, by and between the Company and SDS Merchant Fund,
L.P. as in effect on the date hereof, pursuant to which the promissory note
issued by the Company to Nortel Networks Inc. on December 7, 2001, will be
surrendered to the Company in exchange for shares of Common Stock.

     (i) "Permitted Sale" means either (1) a transfer of Common Stock or
Warrants to any Permitted Transferee, or (2) a transfer of Common Stock and
Warrants in connection with a disposition of all of the equity interests of the
Company and all of the Company's obligations under the Credit Agreement held by
the transferor.

     (j) "Permitted Transferee" means (i) in the case of an Investor who is an
individual, such person's ancestors, descendants or spouse, or any custodian or
trustee for the account of such person (or for the account of such person's
ancestors, descendants or spouse), (ii) in the case of an Investor which is a
partnership or limited liability company, any constituent partner or member of
such entity, (iii) in the case of an Investor which is a corporation, any parent
corporation or wholly-owned subsidiary corporation or any officer, director or
10% stockholder of such corporation, and (iv) any other Investor.

     (k) "person" means any individual, corporation, partnership, limited
liability company, trust, business, association or governmental or political
subdivision thereof, governmental agency or other entity.

     (l) "Purchase Price" means an amount per share equal to $0.15 (subject to
adjustment for stock splits, stock dividends, stock recombinations and similar
transactions).

     (m) "Qualified Public Offering" shall mean any firm commitment underwritten
public offering by the Company of its Common Stock yielding gross proceeds to

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the Company of at least $50.0 million at a per share price to the public of at
least $10 (subject to adjustment for stock splits, stock dividends, stock
recombinations and similar transactions).

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

     (o) The term "Registrable Securities" means the shares of Common Stock
issuable or issued to the Investors (i) pursuant to the Purchase Agreement, (ii)
in connection with the exercise of Warrants issued or issuable pursuant to the
Purchase Agreement or Old Purchase Agreement, (iii) as Liquidated Damages
pursuant to Section 2.1(b) hereof, (iv) pursuant to the Old Purchase Agreement
and (v) as (or issuable upon the conversion, exercise or exchange of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of, the
shares listed in clauses (i), (ii), (iii), (iv) and this clause (v).
Notwithstanding the foregoing, securities shall only be treated as Registrable
Securities if and so long as they have not been (A) sold to or through a broker
or dealer or underwriter in a public distribution or a public securities
transaction, or (B) sold in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act under Section 4(1)
thereof so that all transfer restrictions, and restrictive legends with respect
thereto, if any, are removed upon the consummation of such sale.

     (p) The number of shares of "Registrable Securities then outstanding" shall
equal the number of shares of Common Stock outstanding which are, and the number
of shares of Common Stock issuable pursuant to then exercisable or convertible
securities which are, Registrable Securities.

     (q) "SDS Note Exchange Agreement" means the Note Exchange Agreement, dated
as of November 11, 2002, by and between the Company and SDS Merchant Fund, L.P.
as in effect on the date hereof, providing for the conversion of the entire
aggregate principal amount, all accrued and unpaid interest thereon and all
other amounts payable in respect of the promissory note issued by the Company to
SDS Merchant Fund, L.P. in March, 2002 in an initial principal amount of
$2,000,000.

     (r) "SEC" means the Securities and Exchange Commission or any other federal
agency at the time administering the Securities Act.

     (s) "Securities Act" means the Securities Act of 1933, as amended.

     (t) "Series H Share Exchange Agreement" means the Share Exchange Agreement,
dated as of October 30, 2002, by and among the Company and each of the
purchasers whose names appear on the signature pages thereto, pursuant to which
the Company will issue Common Stock in exchange for all of its issued and
outstanding shares of Series H Preferred Stock.

     (u) "Series J Share Exchange Agreement" means the Series J-1 Share Exchange
Agreement, dated as of October 30, 2002, by and among the Company and each of
the purchasers whose names appear on the signature pages thereto, pursuant to
which the Company

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will issue Common Stock in exchange for all of its issued and outstanding shares
of Series J-1 Preferred Stock.

     (v) "Trading Day" means, with respect to any security, any day on which the
principal market (including any formal or informal over the counter market) in
which such security is then traded or on which a quoted price therefor may be
ascertained is open for business.

     (w) "Transfer Restriction Period" means, (i) with respect to each Investor
other than Nortel Networks Inc., the period of time commencing on the date of
this Agreement and ending upon the first anniversary of the date of this
Agreement, and (ii) with respect to Nortel Networks Inc., the period of time
commencing on the date of this Agreement and ending on February 28, 2003.

     2. Registration Rights

     2.1 Shelf Registration.

     (a) Filing. The Company shall (i) prepare and file with the SEC a shelf
registration statement on Form S-3 (the "Shelf Registration Statement") pursuant
to Rule 415 under the Securities Act relating to all of the Registrable
Securities within 60 days of the date hereof (the "Filing Deadline") and (ii)
use its best efforts to cause the Shelf Registration Statement to be declared
effective under the Securities Act within 180 days of the date hereof (the
"Effectiveness Deadline"). The Shelf Registration Statement may also include all
of the "Registrable Securities" as defined in the New Equity Registration Rights
Agreement.

     The Company shall use its reasonable best efforts to keep the Shelf
Registration Statement continuously effective, supplemented and amended to the
extent necessary to ensure that it is available for resale of Registrable
Securities by the holders thereof entitled to the benefits of this Section
2.1(a) and to ensure that it conforms with the requirements of this Agreement,
the Securities Act and the policies, rules and regulations of the SEC as
announced from time to time, until all Registrable Securities covered by such
Shelf Registration Statement have been sold pursuant thereto.

     (b) Liquidated Damages.

     If (i) the Shelf Registration Statement is not filed with the SEC on or
prior to the Filing Deadline, (ii) the Shelf Registration Statement has not been
declared effective by the SEC on or prior to the Effectiveness Deadline, or
(iii) prior to the sale of all Registrable Securities covered by such Shelf
Registration Statement, the Shelf Registration Statement is filed and declared
effective but shall thereafter cease to be effective or fail to be usable for
its intended purpose without being succeeded within two Business Days by a
post-effective amendment to the Shelf Registration Statement that cures such
failure and that is itself declared effective within five Business Days of
filing such post-effective amendment to such Registration Statement (each such
event referred to in clauses (i) through (iii), a "Registration Default"), then
the Company hereby agrees to pay to each record holder of Registrable Securities
liquidated damages ("Liquidated Damages") for the period during which such
Registration Default continues at a per annum rate of 6% (or, for any period of
time during which such Registration Default continues

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after June 30, 2004, 8%) of the Purchase Price of such Registrable Securities.
Liquidated Damages shall be paid in shares of Common Stock at a per share rate
equal to the Purchase Price. Notwithstanding anything to the contrary set forth
herein, (1) upon filing of the Shelf Registration Statement, (2) upon the
effectiveness of the Shelf Registration Statement, or (3) upon the filing of a
post-effective amendment to the Shelf Registration Statement that causes the
Shelf Registration Statement to again be declared effective or made usable, the
Liquidated Damages payable with respect to the Registrable Securities as a
result of such clause (i), (ii), or (iii), as applicable, shall cease to accrue.
Notwithstanding anything to the contrary in this Section 2.1(b), if a
Registration Default shall have occurred in connection with the Company's
exercise of its rights under Section 2.1(c) hereof, such Registration Default
shall not be deemed to occur until one Business Day following the termination of
the postponement or suspension permitted pursuant to such Section 2.1(c).

     All accrued Liquidated Damages shall be paid to the holders of Registrable
Securities entitled thereto on the last Business Day of each month in which such
Liquidated Damages accrued. Notwithstanding the fact that any securities for
which Liquidated Damages are due cease to be Registrable Securities, all
obligations of the Company to pay Liquidated Damages with respect to securities
shall survive until such time as such obligations with respect to such
securities shall have been satisfied in full.

     (c) Postponing Or Suspending Filing Or Effectiveness Of A Registration
Statement.

     If (i) there is material non-public information regarding the Company which
the Company's Board of Directors reasonably determines not to be in the
Company's best interest to disclose and which the Company is not otherwise
required to disclose, or (ii) there is a significant business opportunity
(including the acquisition or disposition of assets (other than in the ordinary
course of business) or any merger, consolidation, tender offer or other similar
transaction) available to the Company which such Board of Directors reasonably
determines not to be in the Company's best interest to disclose, then the
Company may postpone or suspend filing or effectiveness of a registration
statement for a period not to exceed 20 consecutive days, provided that the
Company may not postpone or suspend its obligation under this Section 2.1(c) for
more than 45 days in the aggregate during any 12 month period; provided,
however, that no such postponement or suspension shall be permitted for
consecutive 20 day periods, arising out of the same set of facts, circumstances
or transactions.

     2.2 Company Registration.

     (a) Initiation. If the Company proposes to register (including for this
purpose a registration effected by the Company for stockholders other than the
Investors) any of its stock in connection with a public offering of such
securities for cash (other than an Exempt Registration), the Company shall, at
such time, promptly give each Investor notice of such registration. Upon the
written request of each Investor given within 20 days after receipt by such
Investor of the Company's notice, the Company shall, subject to the provisions
of Section 2.2(b),

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cause to be registered all of the Registrable Securities that each such Investor
has requested to be registered.

     (b) Underwritten Offering. In connection with any offering involving an
underwriting of shares of the Company's capital stock, the Company shall not be
required under Section 2.2(a) to include an Investor's securities in such
underwriting unless such Investor accepts the terms of the underwriting as
agreed upon between the Company and the underwriters selected by it (or by other
persons entitled to select the underwriters), and then only in such quantity as
the underwriters advise the Company in writing will not adversely affect the
marketing of the Company's capital stock. If the total amount of securities,
including Registrable Securities, requested by stockholders to be included in
such offering exceeds the maximum amount of securities sold other than by the
Company that the underwriters determine would not adversely affect the marketing
of the offering, then the Company shall be required to include in the offering
only that number of such securities, including Registrable Securities, which the
underwriters determine would not adversely affect the marketing of the offering
(the securities so included to be apportioned pro rata (to the nearest 100
shares) among the selling stockholders according to the total amount of
securities entitled to be included therein owned by each selling stockholder or
in such other proportions as shall mutually be agreed to by such selling
stockholders). For purposes of the preceding apportionment, for any
participating Investor that is a partnership, limited liability company or
corporation, the partners, retired partners, members, retired members and
stockholders of such Investor, or the estates and family members of any such
partners, members, retired partners or members and any trusts for the benefit of
any of the foregoing persons shall be deemed to be a single "selling
stockholder," and any pro-rata reduction with respect to such "selling
stockholder" shall be based upon the aggregate amount of shares carrying
registration rights owned by all persons included in such "selling stockholder,"
as defined in this sentence.

     2.3 Obligations of the Company. Whenever required under this Section 2 to
effect the registration of any Registrable Securities, in addition to any other
obligations of the Company under this Agreement, the Company shall, as
expeditiously as reasonably possible:

     (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 with such
registration statement as may be necessary to comply with the provisions of the
Securities Act.

     (c) Furnish to the Investors such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order
to facilitate the disposition of such Registrable Securities.

     (d) Use its reasonable best efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Investors,
provided that the Company shall

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not be required in connection therewith or as a condition thereto to qualify to
do business or to file a general consent to service of process in any such
states or jurisdictions.

     (e) In the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement with the managing
underwriter of such offering in usual and customary form and consistent with the
other provisions of this Agreement. Each Investor participating in such
underwriting shall also enter into and perform its obligations under such an
agreement.

     (f) Promptly notify each Investor of Registrable Securities covered by the
registration statement at any time when the Company becomes aware of the
happening of any event as a result of which the registration statement or the
prospectus included in such registration statement or any supplement to the
prospectus (as then in effect) contains any untrue statement of a material fact
or omits to state a material fact necessary to make the statements therein (in
the case of the prospectus, in light of the circumstances under which they were
made) not misleading or, if for any other reason it shall be necessary during
such time period to amend or supplement the registration statement or the
prospectus in order to comply with the Securities Act, whereupon, in either
case, each Investor shall immediately cease to use such registration statement
or prospectus for any purpose and, as promptly as reasonably practicable
thereafter, the Company shall prepare and file with the SEC, and furnish without
charge to the appropriate Investors and managing underwriters, if any, a
supplement or amendment to such registration statement or prospectus which will
correct such statement or omission or effect such compliance and such copies
thereof as the Investors and any underwriters may reasonably request.

     (g) Cause all such Registrable Securities registered pursuant hereunder to
be listed on each securities exchange or over-the-counter market on which
similar securities issued by the Company are then listed, if applicable.

     (h) Provide a transfer agent and registrar for such Registrable Securities
and a CUSIP number for all such Registrable Securities, in each case not later
than the effective date of such registration.

     (i) Use its reasonable best efforts, after the effectiveness of a
registration statement under the Securities Act qualifying a public offering of
Registrable Securities held by an Investor, to issue and deliver, upon delivery
of a certificate representing shares of Registrable Securities held by such
Investor, that number of Registrable Securities represented by such certificate
to the Depository Trust Company ("DTC") account on the Investor's behalf via the
Deposit Withdrawal Agent Commission System ("DWAC").

     (j) Use its reasonable best efforts to furnish, at the request of any
Investor requesting registration of Registrable Securities pursuant to Section
2.2, on the date that such Registrable Securities are delivered to the
underwriters for sale in connection with a registration pursuant to Section 2.2,
if such securities are being sold through underwriters, or, if such securities
are not being sold through underwriters, on the date that the registration
statement with respect to such securities becomes effective, (i) an opinion,
dated such date, of the counsel representing the Company for the purposes of
such registration, in form and substance as is customarily given to underwriters
in an underwritten public offering, addressed to the

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underwriters, if any, and to the Investors requesting registration of
Registrable Securities and (ii) a letter dated such date, from the independent
certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and to
the Investors requesting registration of Registrable Securities (to the extent
the then applicable standards of professional conduct permit said letter to be
addressed to the Investors).

     2.4 Furnish Information. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 2 with
respect to the Registrable Securities of any selling Investor that such Investor
shall furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such securities
as shall be required to effect the registration of such Investor's Registrable
Securities.

     2.5 Expenses of Registration. All expenses other than underwriting
discounts and commissions incurred in connection with registrations initiated
pursuant to this Section 2, including all registration, filing and qualification
fees, printers' and accounting fees, fees and disbursements of counsel for the
Company, and the reasonable fees and disbursements of one special counsel for
the selling Investors selected by Investors selling a majority of the subject
Registrable Securities with the approval of the Company, which approval shall
not be unreasonably withheld, shall be borne by the Company.

     2.6 Delay of Registration. No Investor shall have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 2.

     2.7 Indemnification. In the event any Registrable Securities are included
in a registration statement under this Section 2:

     (a) Indemnification by the Company. The Company will indemnify and hold
harmless each Investor, any underwriter (as defined in the Securities Act) for
such Investor, and each person, if any, who controls such Investor or
underwriter within the meaning of the Securities Act or the Exchange Act, and
their respective officers, directors, partners, members, brokers, investment
advisors, employees, legal counsel, accountants, and agents (collectively, the
"Indemnified Parties"), against any losses, claims, damages, or liabilities
(joint or several) to which they may become subject under the Securities Act,
the Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations
(collectively a "Violation"): (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement, including
any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities law; and the Company will pay to each
such Indemnified Person, as incurred, any legal or other

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expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability, or action; provided, however,
that the indemnity agreement contained in this subsection 2.7(a) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability, or
action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable to
any Indemnified Person for any such loss, claim, damage, liability, or action to
the extent that it arises solely out of or is based solely upon a Violation
which occurs in reasonable reliance upon and in conformity with written
information furnished expressly for use in connection with such registration, by
such Indemnified Person.

     (b) Indemnification by the Investors. To the extent permitted by law, each
selling Investor will indemnify and hold harmless the Company, each of its
directors, each of its officers who has signed the registration statement, each
person, if any, who controls the Company within the meaning of the Securities
Act, any underwriter, any other Investor selling securities in such registration
statement and any controlling person of any such underwriter or other Investor,
against any losses, claims, damages, or liabilities (joint or several) to which
any of the foregoing persons may become subject, under the Securities Act, the
Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereto) arise out of or are
based upon any Violation, in each case to the extent (and only to the extent)
that such Violation occurs solely in reliance upon and in conformity with
written information furnished by such Investor expressly for use in connection
with such registration; and each such Investor will pay, as incurred, any legal
or other expenses reasonably incurred by any person intended to be indemnified
pursuant to this Section 2.7(b), in connection with investigating or defending
any such loss, claim, damage, liability, or action; provided, however, that the
indemnity agreement contained in this Section 2.7(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Investor, which consent shall
not be unreasonably withheld; provided, that in no event shall any indemnity
under this Section 2.7(b) exceed the net proceeds from the offering received by
such Investor.

     (c) Procedures. Promptly after receipt by an indemnified party under this
Section 2.7 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 2.7, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the reasonable fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
2.7, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have

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to any indemnified party otherwise than under this Section 2.7. No indemnifying
party, in the defense of any such claim or litigation, shall, except with the
consent of each indemnified party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation. The indemnity agreements
contained in this Section 2.7 shall not apply to amounts paid in settlement of
any loss, claim, damage, liability or action if such settlement is effected
without the consent of the indemnifying party.

     (d) Contribution. If the indemnification provided for in this Section 2.7
is held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any loss, liability, claim, damage or expense referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage, or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense as well as any other relevant equitable
considerations; provided, that in no event shall any contribution by an Investor
under this Section 2.7(d) exceed the net proceeds from the offering received by
such Investor. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

     (e) Underwriting Agreement. Notwithstanding the foregoing, to the extent
that the provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with the underwritten public
offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

     (f) Survival. The obligations of the Company and Investors under this
Section 2.7 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 2, and otherwise.

     2.8 Reports Under Securities Exchange Act of 1934. With a view to making
available to the Investors the benefits of Rule 144 promulgated under the
Securities Act and any other rule or regulation of the SEC that may at any time
permit an Investor to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company agrees to:

     (a) make and keep public information available, as those terms are
understood and defined in SEC Rule 144, at all times for so long as the Company
remains subject to the periodic reporting requirements under Sections 13 or
15(d) of the Exchange Act;

     (b) take such action, including the voluntary registration of its Common
Stock under Section 12 of the Exchange Act, as is necessary to enable the
Investors to use Form S-3 for the sale of their Registrable Securities;

                                      -10-

<PAGE>

     (c) file with the SEC in a timely manner all reports and other documents as
may be required of the Company under the Securities Act and the Exchange Act;
and

     (d) furnish to any Investor, so long as the Investor owns any Registrable
Securities, forthwith upon request (i) a written statement by the Company
whether it has complied with the reporting requirements of SEC Rule 144, the
Securities Act and the Exchange Act, or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after it so
qualifies), (ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company, and (iii)
such other information as may be reasonably requested in availing any Investor
of any rule or regulation of the SEC which permits the selling of any such
securities without registration or pursuant to such form.

     2.9 Assignment of Registration Rights. The rights to cause the Company to
register securities granted Investors under Section 2 may be assigned to any
Permitted Transferee or any transferee or assignee in connection with the
transfer or assignment of all or any portion of such Investor's Registrable
Securities; provided, that (a) such transfer may otherwise be effected in
accordance with applicable securities laws and other restrictions on transfer
applicable to such shares, (b) notice of such assignment is given to the Company
and (c) such transferee or assignee agrees to be bound by all provisions of this
Agreement.

     2.10 Limitations on Subsequent Registration Rights. From and after the date
of this Agreement, the Company shall not, without the prior written consent of
Investors holding at least a majority of the then outstanding Registrable
Securities, enter into any agreement with any holder or prospective holder of
any securities of the Company which would allow such holder or prospective
holder (a) to include such securities in any registration filed under Section 2
hereof, unless under the terms of such agreement, such holder or prospective
holder may include such securities in any such registration only to the extent
that the inclusion of its securities will not reduce the amount of the
Registrable Securities of the Investors which is included or (b) except pursuant
to the New Equity Registration Rights Agreement, to make a demand registration
which could result in such registration statement being declared effective
within 120 days after the effective date of any registration effected pursuant
to Section 2.

     2.11 Market-Standoff Agreement.

     (a) Market-Standoff Period; Agreement. In connection with a Qualified
Public Offering of the Company's equity securities for cash subsequent to the
date herein and upon request of the underwriters managing such offering of the
Company's securities, each Investor hereby agrees not to sell, make any short
sale of, loan, grant any option for the purchase of, or otherwise dispose of any
securities of the Company (other than any disposed of in the registration and
those acquired by the Investor in the registration or thereafter in open market
transactions) without the prior written consent of such underwriters, for such
period of time (not to exceed (i) 180 days with respect to the next Qualified
Public Offering and (ii) 90 days with respect to each other Qualified Public
Offering, or in each case such shorter period as the Company agrees to with any
other person) from the effective date of such registration as may

                                      -11-

<PAGE>

be requested by such managing underwriters and to execute an agreement
reflecting the foregoing as may be requested by the underwriters at the time of
such Qualified Public Offering.

     (b) Limitations. The obligations described in Section 2.11(a) shall apply
only if and to the extent that all officers and directors of the Company enter
into similar agreements. If any standoff or lockup restrictions imposed on any
holder of securities of the Company is waived or terminated, then such waiver or
termination shall be granted to all Investors subject to standoff or lockup
restrictions pro rata based on the number of shares of Common Stock beneficially
held by such holder and the Investors. From and after the date of this
Agreement, the Company shall use its reasonable best efforts to ensure that all
holders of capital stock of the Company agree to be bound by terms substantially
similar to those set forth in this Section 2.11.

     (c) Stop-Transfer Instructions. In order to enforce the foregoing
covenants, the Company may impose stop-transfer instructions with respect to the
securities of each Investor (and the securities of every other person subject to
the restrictions in Section 2.11(a)).

     2.12 Termination of Registration Rights. No Investor shall be entitled to
exercise any registration right provided for in this Section 2 after the earlier
of (a) such time as Rule 144 is available for the sale of all of such Investor's
Registrable Securities during a three-month period without registration, without
reference to Rule 144(k) and (b) 2 years after the consummation of the Company's
next Qualified Public Offering.

     3. Transfer Restrictions.

     3.1 Restrictions on Transfer. Unless waived pursuant to Section 4.5, during
the Transfer Restriction Period, each Investor agrees not to transfer any shares
of Common Stock or Warrants received pursuant to the Purchase Agreement or Old
Purchase Agreement or upon any exercise of such Warrants, except pursuant to a
Permitted Sale.

     3.2 Right of First Offer.

     (a) General. Each Investor shall have a right of first offer to purchase
its pro rata share of all Equity Securities, as defined below, that the Company
may, from time to time, propose to sell and issue after the date of this
Agreement, other than the Equity Securities excluded by Section 3.2(c) hereof.
Each Investor's pro rata share is equal to the ratio of (a) the number of shares
of the Company's Common Stock (including all shares of Common Stock issued or
issuable upon conversion, exercise or exchange of securities of the Company)
which such Investor holds immediately prior to the issuance of such Equity
Securities to (b) the total number of shares of the Company's outstanding Common
Stock (including all shares of Common Stock issued or issuable upon conversion,
exercise or exchange of securities of the Company) immediately prior to the
issuance of the Equity Securities. The term "Equity Securities" means (i) any
Common Stock, preferred stock or other equity security of the Company, (ii) any
security convertible, with or without consideration, into any common stock,
preferred stock or other equity security of the Company (including any option or
warrant to purchase such a convertible security) and (iii) any security carrying
any warrant or right to

                                      -12-

<PAGE>

subscribe to or purchase any common stock, preferred stock or other equity
security of the Company, and any such warrant or right.

     (b) Exercise of Rights. If the Company proposes to issue any Equity
Securities, it shall give each Investor written notice of its intention,
describing the Equity Securities, the price and the terms and conditions upon
which the Company proposes to issue the same. Each Investor shall have 5
Business Days from the receipt of such notice to agree to purchase its pro rata
share of the Equity Securities for the price and upon the terms and conditions
specified in the notice by giving written notice to the Company and stating
therein the quantity of Equity Securities to be purchased. Notwithstanding the
foregoing, the Company shall not be required to offer or sell such Equity
Securities to any Investor who would cause the Company to be in violation of
applicable federal securities laws by virtue of such offer or sale,

     (c) Excluded Securities. The rights of first offer established by this
Section 3 shall have no application to any of the following Equity Securities:

     (i) up to 100,441,177 shares of Common Stock, and/or options, warrants or
other Common Stock purchase rights and the Common Stock issued pursuant to such
options, warrants or other rights (as adjusted for any stock dividends,
combinations, splits, recapitalizations and the like), issued to employees,
officers, directors or strategic partners of, or consultants, advisors, lenders,
vendors or lessors to, the Company or any of its subsidiaries pursuant to the
Company's stock incentive plans or pursuant to other similar arrangements that
are approved by the Board of Directors (including the representatives of the
Investors);

     (ii) [Intentionally Omitted];

     (iii) any shares of Common Stock issued in connection with any stock split,
stock dividend or recapitalization by the Company;

     (iv) any Equity Securities that are issued by the Company to the holders of
the Company's Common Stock and warrants on a pro rata basis pursuant to a
registration statement filed under the Securities Act;

     (v) any Equity Securities issued pursuant to any rights or agreements
outstanding as of the date of this Agreement, or options or warrants outstanding
as of the date of this Agreement as set forth in the Schedule of Exceptions to
the Purchase Agreement (including Equity Securities issued by the Company
pursuant to Nortel Note Exchange Agreement, SDS Note Exchange Agreement, the
Series H Share Exchange Agreement, and the Series J Share Exchange Agreement);

     (vi) Common Stock and warrants (and Common Stock issuable upon exercise of
such warrants) issued by the Company pursuant to the Common Stock Purchase
Agreement dated as of October 30, 2002, by and between the Company and the
entities listed on Exhibit A thereto; or

     (vii) any Equity Securities issued pursuant to the transactions described
in Section 2.5.B(iii)(d) of the Credit Agreement if the proceeds from such
issuance are

                                      -13-

<PAGE>

used to prepay the Loans (as defined in the Credit Agreement) and permanently
reduce the Commitments (as defined in the Credit Agreement) in accordance with
Section 2.5.C. of the Credit Agreement.

     4. Miscellaneous.

     4.1 Legends. Each certificate representing shares of Common Stock held by
an Investor or any subsequent holder of such shares shall be stamped or
otherwise imprinted with legends substantially similar to the following (in
addition to any legend required under applicable state securities laws):

     "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED
FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT AND ANY
APPLICABLE STATE SECURITIES LAW.

     THE SALE, TRANSFER OR PLEDGE OF THIS CERTIFICATE ARE SUBJECT TO THE TERMS
AND CONDITIONS OF AN AGREEMENT BETWEEN THE COMPANY AND CERTAIN HOLDERS OF ITS
SECURITIES, AS THE SAME MAY BE AMENDED AND IN EFFECT FROM TIME TO TIME. COPIES
OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE
COMPANY."

     The Company shall be obligated to reissue promptly unlegended certificates
at the request of any holder of a security legended pursuant to this Section 4
if such holder shall have obtained an opinion of counsel at such holder's
expense (which counsel may be counsel to the Company) reasonably acceptable to
the Company to the effect that the securities proposed to be disposed of may
lawfully be so disposed of without registration, qualification or legend. The
Company shall be obligated to reissue promptly certificates not having the
second paragraph of the legend set forth above at the request of any holder of a
security legended pursuant to this Section 4.1 if such holder is not a party to
this Agreement or a person who is an Investor or transferee of an Investor
hereunder.

     4.2 Entire Agreement. This Agreement constitutes the entire agreement among
the parties hereto pertaining to the subject matter hereof, and any and all
other written or oral agreements relating to the subject matter hereof existing
among any of the parties hereto are expressly canceled.

     4.3 Recapitalizations, Etc.. The provisions of this Agreement (including
any calculation of share ownership) shall apply, to the full extent set forth
herein with respect to the Registrable Securities, to any and all shares of
capital stock of the Company or any capital stock, partnership or member units
or any other security evidencing ownership interests in any successor or assign
of the Company (whether by merger, consolidation, sale of assets or otherwise)
that may be issued in respect of, in exchange for, or in substitution of the
Registrable Securities by reason of any stock dividend, split, combination,
recapitalization, liquidation, reclassification, merger, consolidation or
otherwise.

                                      -14-

<PAGE>

     4.4 Successors and Assigns. Except as otherwise provided in this Agreement,
the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective permitted successors and assigns of the parties
(including transferees of any Registrable Securities). Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

     4.5 Amendments and Waivers. Any term of Section 2 of this Agreement may be
amended or waived only with the written consent of the Company and the holders
of at least 75% of the Registrable Securities then outstanding. Any other term
of this Agreement may be amended or waived only with the written consent of the
Investors holding at least 75% of the Common Stock (on a fully-diluted basis)
issued pursuant to the Purchase Agreement or the Old Purchase Agreement and then
held by all Investors. Any amendment or waiver effected in accordance with this
paragraph shall be binding upon each Investor. Notwithstanding the foregoing, if
in any particular instance a party's obligations or rights under this Agreement
are adversely affected thereby in a disproportionately adverse manner from that
in which other parties are affected by application of this Section, the consent
of such party shall also be required in such instance.

     4.6 Notices. Unless otherwise provided, any notice required or permitted by
this Agreement shall be in writing and shall be deemed sufficient upon delivery,
when delivered personally or by overnight courier or sent by telegram or
confirmed fax, or if mailed to a domestic address, 48 hours after being
deposited in the U.S. mail, as certified or registered mail, with postage
prepaid, and addressed to the party to be notified at such party's address or
fax number as set forth below or on Exhibit A hereto or as subsequently modified
by written notice.

     4.7 Severability. If one or more provisions of this Agreement are held to
be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.

     4.8 Delays or Omissions; Remedies Cumulative. No delay or omission to
exercise any right, power or remedy accruing to any party under this Agreement,
upon any breach or default of any other party under this Agreement, shall impair
any such right, power or remedy of such non-breaching or non-defaulting party
nor shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of or in any similar breach or default thereafter
occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any
party of any breach or default under this Agreement, or any waiver on the part
of any party of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such
writing. All remedies, either under this Agreement or by law or otherwise
afforded to any party, shall be cumulative and not alternative.

                                      -15-

<PAGE>

     4.9 Attorney's Fees. If any action at law or in equity (including
arbitration) is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorney's fees, costs and
disbursements in addition to any other relief to which such party may be
entitled.

     4.10 Governing Law. This Agreement and all acts and transactions pursuant
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of New York, without giving effect to principles of conflicts of
laws.

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

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

                            [Signature Page Follows]

                                      -16-

<PAGE>

     The parties have executed this Investor's Rights Agreement as of the date
first above written.

COMPANY:
--------

FIBERNET TELECOM GROUP, INC.

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

INVESTORS:
----------

DEUTSCHE BANK AG NEW YORK BRANCH

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

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

WACHOVIA INVESTORS, INC.

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

BANK ONE, N.A.

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

<PAGE>

IBM CREDIT CORPORATION

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

NORTEL NETWORKS INC.

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

TORONTO DOMINION (TEXAS), INC.

By: /s/ Jano Nixon
    ------------------------------
Name:   Jano Nixon
Title:  Vice PresidentEXHIBIT 4.3

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR FIBERNET TELECOM GROUP, INC. SHALL HAVE
RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE
SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS
NOT REQUIRED.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                          FIBERNET TELECOM GROUP, INC.

                            Expires November 11, 2007

No.: W-02-__                                     Number of Shares: ___________
Date of Issuance: November 11, 2002

     FOR VALUE RECEIVED, subject to the provisions hereinafter set forth, the
undersigned, FiberNet Telecom Group, Inc., a Delaware corporation (together with
its successors and assigns, the "Issuer"), hereby certifies that
_______________________________ or its registered assigns is entitled to
subscribe for and purchase, during the Term (as hereinafter defined), up to
____________________________________ (_____________) shares (subject to
adjustment as hereinafter provided) of the duly authorized, validly issued,
fully paid and non-assessable Common Stock of the Issuer, at an exercise price
per share equal to the Warrant Price (as hereinafter defined) then in effect,
subject, however, to the provisions and upon the terms and conditions
hereinafter set forth. Capitalized terms used in this Warrant and not otherwise
defined herein shall have the respective meanings specified in Section 8 hereof.

     1. Term. The right to subscribe for and purchase shares of Warrant Stock
represented hereby shall commence on November 11, 2002 and shall expire at 5:00
p.m., eastern time, on November 11, 2007 (such period being the "Term").

                                      -1-
<PAGE>

     2. Method of Exercise Payment; Issuance of New Warrant; Transfer and
Exchange.

     (a) Time of Exercise. The purchase rights represented by this Warrant may
be exercised in whole or in part during the Term commencing on November 11, 2002
and expiring on November 11, 2007.

     (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election (i) by certified or official bank
check or by wire transfer to an account designated by the Issuer, (ii) by
"cashless exercise" in accordance with the provisions of subsection (c) of this
Section 2, or (iii) by a combination of the foregoing methods of payment
selected by the Holder of this Warrant.

     (c) Cashless Exercise. Notwithstanding any provisions herein to the
contrary, if the Per Share Market Value of one share of Common Stock is greater
than the Warrant Price (at the date of calculation as set forth below), in lieu
of exercising this Warrant by payment of cash, the Holder may exercise this
Warrant by a cashless exercise by surrender of this Warrant at the principal
office of the Issuer together with the properly endorsed Notice of Exercise in
which event the Issuer shall issue to the Holder a number of shares of Common
Stock computed using the following formula:

            X = Y - (A)(Y)
                    ------
                       B

Where       X =     the number of shares of Common Stock to be issued to the
                    Holder.

            Y =     the number of shares of Common Stock purchasable upon
                    exercise of all of the Warrant or, if only a portion of the
                    Warrant is being exercised, the portion of the Warrant being
                    exercised.

            A =     the Warrant Price.

            B =     the Per Share Market Value of one share of Common Stock.

     (d) Issuance of Stock Certificates. In the event of any exercise of the
rights represented by this Warrant in accordance with and subject to the terms
and conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding three (3) Trading Days after such
exercise or, at the request of the Holder (provided that a registration
statement under the Securities Act qualifying a public offering of the Warrant
Stock is then in effect), issued and delivered to the Depository Trust Company
("DTC") account on the Holder's behalf via the Deposit Withdrawal Agent
Commission System ("DWAC") within a reasonable time, not exceeding three (3)
Trading Days after such exercise, and the Holder hereof shall be deemed for

                                      -2-
<PAGE>

all purposes to be the holder of the shares of Warrant Stock so purchased as of
the date of such exercise and (ii) unless this Warrant has expired, a new
Warrant representing the right to purchase the number of shares of Warrant
Stock, if any, with respect to which this Warrant shall not then have been
exercised (less any amount thereof which shall have been canceled in payment or
partial payment of the Warrant Price as hereinabove provided) shall also be
issued to the Holder hereof at the Issuer's expense within such time.

     (e) Transferability of Warrant. Subject to Section 2(g), this Warrant may
be transferred by a Holder without the consent of the Issuer. If transferred
pursuant to this paragraph and subject to the provisions of subsection (g) of
this Section 2, this Warrant may be transferred on the books of the Issuer by
the Holder hereof in person or by duly authorized attorney, upon surrender of
this Warrant at the principal office of the Issuer, properly endorsed (by the
Holder executing an assignment in the form attached hereto) and upon payment of
any necessary transfer tax or other governmental charge imposed upon such
transfer. This Warrant is exchangeable at the principal office of the Issuer for
Warrants for the purchase of the same aggregate number of shares of Warrant
Stock, each new Warrant to represent the right to purchase such number of shares
of Warrant Stock as the Holder hereof shall designate at the time of such
exchange. All Warrants issued on transfers or exchanges shall be dated the
Original Issue Date and shall be identical with this Warrant except as to the
number of shares of Warrant Stock issuable pursuant hereto.

     (f) Continuing Rights of Holder. The Issuer will, at the time of or at any
time after each exercise of this Warrant, upon the request of the Holder hereof,
acknowledge in writing the extent, if any, of its continuing obligation to
afford to such Holder all rights to which such Holder shall continue to be
entitled after such exercise in accordance with the terms of this Warrant,
provided that if any such Holder shall fail to make any such request, the
failure shall not affect the continuing obligation of the Issuer to afford such
rights to such Holder.

     (g) Compliance with Securities Laws.

          (i) The Holder of this Warrant, by acceptance hereof, acknowledges
     that this Warrant or the shares of Warrant Stock to be issued upon exercise
     hereof are being acquired solely for the Holder's own account and not as a
     nominee for any other party, and for investment, and that the Holder will
     not offer, sell or otherwise dispose of this Warrant or any shares of
     Warrant Stock to be issued upon exercise hereof except pursuant to an
     effective registration statement, or an exemption from registration, under
     the Securities Act and any applicable state securities laws.

          (ii) Except as provided in paragraph (iii) below, this Warrant and all
     certificates representing shares of Warrant Stock issued upon exercise
     hereof shall be stamped or imprinted with a legend in substantially the
     following form:

          THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE
          UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
          ACT") OR ANY STATE

                                      -3-
<PAGE>

          SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR
          OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
          SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES
          LAWS OR FIBERNET TELECOM GROUP, INC. SHALL HAVE
          RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF
          SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
          PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
          REQUIRED.

          (iii) The restrictions imposed by this subsection (e) upon the
     transfer of this Warrant or the shares of Warrant Stock to be purchased
     upon exercise hereof shall terminate (A) when such securities shall have
     been resold pursuant to an effective registration statement under the
     Securities Act, (B) upon the Issuer's receipt of an opinion of counsel, in
     form and substance reasonably satisfactory to the Issuer, addressed to the
     Issuer to the effect that such restrictions are no longer required to
     ensure compliance with the Securities Act and state securities laws or (C)
     upon the Issuer's receipt of other evidence reasonably satisfactory to the
     Issuer that such registration and qualification under the Securities Act
     and state securities laws are not required. Whenever such restrictions
     shall cease and terminate as to any such securities, the Holder thereof
     shall be entitled to receive from the Issuer (or its transfer agent and
     registrar), without expense (other than applicable transfer taxes, if any),
     new Warrants (or, in the case of shares of Warrant Stock, new stock
     certificates) of like tenor not bearing the applicable legend required by
     paragraph (ii) above relating to the Securities Act and state securities
     laws.

     3. Stock Fully Paid; Adjustments; Reservation and Listing of Shares;
Covenants.

     (a) Stock Fully Paid; Other Adjustments. The Issuer represents, warrants,
covenants and agrees that all shares of Warrant Stock which may be issued upon
the exercise of this Warrant or otherwise hereunder will, upon issuance, be duly
authorized, validly issued, fully paid and non-assessable and free from all
taxes, liens and charges created by or through the Issuer. The Issuer also
covenants and agrees that during the period within which this Warrant may be
exercised, the Issuer will at all times have authorized and reserved for the
purpose of the issue upon exercise of this Warrant a sufficient number of shares
of Common Stock to provide for the exercise of this Warrant. The Issuer further
represents and warrants that the issuance of this Warrant and the Warrant Stock
will not trigger an adjustment of the exercise price or the number of securities
issuable upon the exercise, conversion or exchange, of any exercisable,
convertible, or exchangeable security issued on the Original Issue Date.

     (b) Reservation. If any shares of Common Stock required to be reserved for
issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal or state law before such shares may be so issued, the Issuer will in
good faith use its reasonable best efforts as expeditiously as possible at its
expense to cause such shares to be duly registered or qualified. If the Issuer
shall list any shares of Common Stock on any securities exchange or market it
will, at its expense, list thereon, maintain and increase when necessary such
listing, of, all shares of Warrant Stock from

                                      -4-
<PAGE>

time to time issued upon exercise of this Warrant or as otherwise provided
hereunder (provided that such Warrant Stock has been registered pursuant to a
registration statement under the Securities Act then in effect), and, to the
extent permissible under the applicable securities exchange rules, all unissued
shares of Warrant Stock which are at any time issuable hereunder, so long as any
shares of Common Stock shall be so listed. The Issuer will also so list on each
securities exchange or market, and will maintain such listing of, any other
securities which the Holder of this Warrant shall be entitled to receive upon
the exercise of this Warrant if at the time any securities of the same class
shall be listed on such securities exchange or market by the Issuer.

     (c) Covenants. The Issuer shall not by any action including, without
limitation, amending the Certificate of Incorporation or the by-laws of the
Issuer, or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such actions as may be necessary or appropriate to
protect the rights of the Holder hereof against dilution (to the extent
specifically provided herein) or impairment. Without limiting the generality of
the foregoing, the Issuer will (i) not permit the par value, if any, of its
Common Stock to exceed the then effective Warrant Price, (ii) not amend or
modify any provision of the Certificate of Incorporation or by-laws of the
Issuer in any manner that would adversely affect the rights of the Holders of
the Warrants, (iii) take all such action as may be reasonably necessary in order
that the Issuer may validly and legally issue fully paid and nonassessable
shares of Common Stock, free and clear of any liens, claims, encumbrances and
restrictions (other than as provided herein) upon the exercise of this Warrant,
and (iv) use its reasonable best efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction
thereof as may be reasonably necessary to enable the Issuer to perform its
obligations under this Warrant.

     (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
reasonably satisfactory to the Issuer of the ownership of and the loss, theft,
destruction or mutilation of any Warrant and, in the case of any such loss,
theft or destruction, upon receipt of indemnity or security reasonably
satisfactory to the Issuer or, in the case of any such mutilation, upon
surrender and cancellation of such Warrant, the Issuer will make and deliver, in
lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like
tenor and representing the right to purchase the same number of shares of Common
Stock.

     4. Adjustment of Warrant Price and Warrant Share Number. The number of
shares of Common Stock for which this Warrant is exercisable, and the price at
which such shares may be purchased upon exercise of this Warrant, shall be
subject to adjustment from time to time as set forth in this Section 4. The
Issuer shall give the Holder notice of any event described below which requires
an adjustment pursuant to this Section 4 in accordance with Section 5.
Notwithstanding anything in this Section 4 to the contrary, no adjustments shall
be made to the number of shares for which this Warrant is exercisable or the
price at which such shares may be purchased upon exercise of this Warrant as a
result of any registered exchange offer to be effected by the Issuer to holders
of all of its warrants outstanding prior to the Original Issue Date, as
described in the Lender Common Stock Purchase Agreement.

                                      -5-
<PAGE>

     (a) Recapitalization, Reorganization, Reclassification, Consolidation,
Merger or Sale.

          (i) In case the Issuer after the Original Issue Date shall do any of
     the following (each, a "Triggering Event"): (a) consolidate with or merge
     into any other Person and the Issuer shall not be the continuing or
     surviving corporation of such consolidation or merger, or (b) permit any
     other Person to consolidate with or merge into the Issuer and the Issuer
     shall be the continuing or surviving Person but, in connection with such
     consolidation or merger, any Capital Stock of the Issuer shall be changed
     into or exchanged for Securities of any other Person or cash or any other
     property, or (c) transfer all or substantially all of its properties or
     assets to any other Person, or (d) effect a capital reorganization or
     reclassification of its Capital Stock, then, and in the case of each such
     Triggering Event, proper provision shall be made so that, upon the basis
     and the terms and in the manner provided in this Warrant, the Holder of
     this Warrant shall be entitled upon the exercise hereof at any time after
     the consummation of such Triggering Event, to the extent this Warrant is
     not exercised prior to such Triggering Event, to receive at the Warrant
     Price in effect at the time immediately prior to the consummation of such
     Triggering Event in lieu of the Common Stock issuable upon the exercise of
     this Warrant prior to such Triggering Event, the Securities, cash and
     property to which such Holder would have been entitled upon the
     consummation of such Triggering Event if such Holder had exercised the
     rights represented by this Warrant immediately prior thereto, subject to
     adjustments (subsequent to such corporate action) as nearly equivalent as
     possible to the adjustments provided for elsewhere in this Section 4.

          (ii) Notwithstanding anything contained in this Warrant to the
     contrary, a Triggering Event shall not be deemed to have occurred if, prior
     to the consummation thereof, each Person (other than the Issuer) which may
     be required to deliver any Securities, cash or property upon the exercise
     of this Warrant as provided herein shall assume, by written instrument
     delivered to, and reasonably satisfactory to, the Holder of this Warrant,
     (A) the obligations of the Issuer under this Warrant (and if the Issuer
     shall survive the consummation of such Triggering Event, such assumption
     shall be in addition to, and shall not release the Issuer from, any
     continuing obligations of the Issuer under this Warrant) and (B) the
     obligation to deliver to such Holder such shares of Securities, cash or
     property as, in accordance with the foregoing provisions of this subsection
     (a), such Holder shall be entitled to receive, and such Person shall have
     similarly delivered to such Holder an opinion of counsel for such Person,
     which counsel shall be reasonably satisfactory to such Holder, or in the
     alternative, a written acknowledgement executed by the President or Chief
     Financial Officer of such Person, stating that this Warrant shall
     thereafter continue in full force and effect and the terms hereof
     (including, without limitation, all of the provisions of this subsection
     (a)) shall be applicable to the Securities, cash or property which such
     Person may be required to deliver upon any exercise of this Warrant or the
     exercise of any rights pursuant hereto.

     (b) Stock Dividends, Subdivisions and Combinations. If at any time the
Issuer shall:

                                      -6-
<PAGE>

          (i) take a record of the holders of its Common Stock for the purpose
     of entitling them to receive a dividend payable in, or other distribution
     of, shares of Common Stock,

          (ii) subdivide its outstanding shares of Common Stock into a larger
     number of shares of Common Stock, or

          (iii) combine its outstanding shares of Common Stock into a smaller
     number of shares of Common Stock,

then (1) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (2) the Warrant Price then in
effect shall be adjusted to equal (A) the Warrant Price then in effect
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable immediately after
such adjustment.

     (c) Certain Other Distributions. If at any time the Issuer shall take a
record of the holders of its Common Stock for the purpose of entitling them to
receive any dividend or other distribution of:

          (i) cash (other than a cash dividend payable out of earnings or earned
     surplus legally available for the payment of dividends under the laws of
     the jurisdiction of incorporation of the Issuer),

          (ii) any evidences of its indebtedness, any shares of stock of any
     class or any other securities or property of any nature whatsoever (other
     than cash, Common Stock Equivalents or Additional Shares of Common Stock),
     or

          (iii) any warrants or other rights to subscribe for or purchase any
     evidences of its indebtedness, any shares of stock of any class or any
     other securities or property of any nature whatsoever (other than cash,
     Common Stock Equivalents or Additional Shares of Common Stock),

then (1) the number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
adjustment multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator of which shall be such Per Share Market Value minus the amount
allocable to one share of Common Stock of any such cash so distributable and of
the fair value (as determined in good faith by the Board of Directors of the
Issuer and supported by an opinion from an investment banking firm of recognized
national standing acceptable to (but not affiliated with) the Holder) of any and
all such evidences of indebtedness, shares of stock, other securities

                                      -7-
<PAGE>

or property or warrants or other subscription or purchase rights so
distributable, and (2) the Warrant Price then in effect shall be adjusted to
equal (A) the Warrant Price then in effect multiplied by the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to the
adjustment divided by (B) the number of shares of Common Stock for which this
Warrant is exercisable immediately after such adjustment. A reclassification of
the Common Stock (other than a change in par value, or from par value to no par
value or from no par value to par value) into shares of Common Stock and shares
of any other class of stock shall be deemed a distribution by the Issuer to the
holders of its Common Stock of such shares of such other class of stock within
the meaning of this Section 4(c) and, if the outstanding shares of Common Stock
shall be changed into a larger or smaller number of shares of Common Stock as a
part of such reclassification, such change shall be deemed a subdivision or
combination, as the case may be, of the outstanding shares of Common Stock
within the meaning of Section 4(b).

     (d) Issuance of Additional Shares of Common Stock.

          (i) In the event the Issuer shall at any time following the six month
     anniversary of the Original Issue Date issue any Additional Shares of
     Common Stock (otherwise than as provided in the foregoing subsections (b)
     through (c) of this Section 4), at a price per share less than the Warrant
     Price then in effect or without consideration, then the Warrant Price upon
     each such issuance shall be adjusted to that price determined by
     multiplying the Warrant Price then in effect by a fraction:

               (A) the numerator of which shall be equal to the sum of (x) the
          number of shares of Outstanding Common Stock immediately prior to the
          issuance of such Additional Shares of Common Stock plus (y) the number
          of shares of Common Stock which the aggregate consideration for the
          total number of such Additional Shares of Common Stock so issued would
          purchase at a price per share equal to the Warrant Price then in
          effect, and

               (B) the denominator of which shall be equal to the number of
          shares of Outstanding Common Stock immediately after the issuance of
          such Additional Shares of Common Stock.

          (ii) The provisions of paragraph (i) of Section 4(d) shall not apply
     to any issuance of Additional Shares of Common Stock for which an
     adjustment is provided under Section 4(b) or 4(c). No adjustment of the
     Warrant Price or the number of shares of Common Stock for which this
     Warrant shall be exercisable shall be made under paragraph (i) of Section
     4(d) upon the issuance of any Additional Shares of Common Stock which are
     issued pursuant to the exercise of any Common Stock Equivalents, if any
     such adjustment shall previously have been made upon the issuance of such
     Common Stock Equivalents (or upon the issuance of any warrant or other
     rights therefor) pursuant to Section 4(e) or Section 4(f).

     (e) Issuance of Warrants or Other Rights. If at any time the Issuer shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive a distribution of, or shall in any manner (whether directly or
by assumption in a merger in which the Issuer is the surviving corporation)
issue or sell, any Common Stock Equivalents (or issue any warrant or other
rights therefor), whether or not the rights to exchange or convert thereunder
are

                                      -8-
<PAGE>

immediately exercisable, and the price per share for which Common Stock is
issuable upon the exercise of such Common Stock Equivalents (or any warrant or
other rights therefor) shall be less than the Warrant Price in effect
immediately prior to the time of such issue or sale, then the number of shares
for which this Warrant is exercisable and the Warrant Price then in effect shall
be adjusted as provided in Section 4(d) on the basis that the maximum number of
Additional Shares of Common Stock issuable pursuant to all such Common Stock
Equivalents (or upon the issuance of any warrant or other rights therefor) shall
be deemed to have been issued and outstanding and the Issuer shall have received
all of the consideration payable therefor, if any, as of the date of the actual
issuance of such Common Stock Equivalents, warrants or other rights. No
adjustments of the Warrant Price then in effect or the amount of Warrant Stock
for which this Warrant is exercisable shall be made upon the actual issue of
such Common Stock or of such Common Stock Equivalents upon exercise of such
warrants or other rights or upon the actual issue of such Common Stock upon such
conversion or exchange of such Common Stock Equivalents.

     (f) Issuance of Common Stock Equivalents. If at any time the Issuer shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive a distribution of, or shall in any manner (whether directly or
by assumption in a merger in which the Issuer is the surviving corporation)
issue or sell, any Common Stock Equivalents, whether or not the rights to
exchange or convert thereunder are immediately exercisable, and the price per
share for which Common Stock is issuable upon such conversion or exchange shall
be less than the Warrant Price in effect immediately prior to the time of such
issue or sale, then the number of shares of Common Stock for which this Warrant
is exercisable and the Warrant Price then in effect shall be adjusted as
provided in Section 4(d) on the basis that the maximum number of Additional
Shares of Common Stock issuable upon the conversion or exchange of all such
Common Stock Equivalents shall be deemed to have been issued and outstanding and
the Issuer shall have received all of the consideration payable therefor, if
any, as of the date of actual issuance of such Common Stock Equivalents. No
further adjustment of the number of shares of Common Stock for which this
Warrant is exercisable and the Warrant Price then in effect shall be made under
this Section 4(f) upon the issuance of any Common Stock Equivalents which are
issued pursuant to the exercise of any warrants or other subscription or
purchase rights therefor, if any such adjustment shall previously have been made
upon the issuance of such warrants or other rights pursuant to Section 4(e). No
further adjustments of the number of shares of Common Stock for which this
Warrant is exercisable and the Warrant Price then in effect shall be made upon
the actual issue of such Common Stock upon conversion or exchange of such Common
Stock Equivalents.

     (g) Superseding Adjustment. If, at any time after any adjustment of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect shall have been made pursuant to Section 4(e) or
Section 4(f) as the result of any issuance of warrants, other rights or Common
Stock Equivalents, and (i) such warrants or other rights, or the right of
conversion or exchange in such other Common Stock Equivalents, shall expire, and
all or a portion of such warrants or other rights, or the right of conversion or
exchange with respect to all or a portion of such other Common Stock
Equivalents, as the case may be shall not have been exercised, or (ii) the
consideration per share for which shares of Common Stock are issuable pursuant
to such Common Stock Equivalents, shall be increased solely by virtue of

                                      -9-
<PAGE>

provisions therein contained for an automatic increase in such consideration per
share upon the occurrence of a specified date or event, then for each
outstanding Warrant such previous adjustment shall be rescinded and annulled and
the Additional Shares of Common Stock which were deemed to have been issued by
virtue of the computation made in connection with the adjustment so rescinded
and annulled shall no longer be deemed to have been issued by virtue of such
computation. Upon the occurrence of an event set forth above in this Section
4(g), there shall be a recomputation made of the effect of such Common Stock
Equivalents on the basis of: (i) treating the number of Additional Shares of
Common Stock or other property, if any, theretofore actually issued or issuable
pursuant to the previous exercise of any such warrants or other rights or any
such right of conversion or exchange, as having been issued on the date or dates
of any such exercise and for the consideration actually received and receivable
therefor, and (ii) treating any such Common Stock Equivalents which then remain
outstanding as having been granted or issued immediately after the time of such
increase of the consideration per share for which shares of Common Stock or
other property are issuable under such Common Stock Equivalents; whereupon a new
adjustment of the number of shares of Common Stock for which this Warrant is
exercisable and the Warrant Price then in effect shall be made, which new
adjustment shall supersede the previous adjustment so rescinded and annulled.

     (h) Purchase of Common Stock by the Issuer. If the Issuer at any time while
this Warrant is outstanding shall, directly or indirectly through a Subsidiary
or otherwise, purchase, redeem or otherwise acquire any shares of Common Stock
at a price per share greater than the Per Share Market Value, then the Warrant
Price upon each such purchase, redemption or acquisition shall be adjusted to
that price determined by multiplying such Warrant Price by a fraction (i) the
numerator of which shall be the number of shares of Outstanding Common Stock
immediately prior to such purchase, redemption or acquisition minus the number
of shares of Common Stock which the aggregate consideration for the total number
of such shares of Common Stock so purchased, redeemed or acquired would purchase
at the Per Share Market Value; and (ii) the denominator of which shall be the
number of shares of Outstanding Common Stock immediately after such purchase,
redemption or acquisition. For the purposes of this subsection (h), the date as
of which the Per Share Market Price shall be computed shall be the earlier of
(x) the date on which the Issuer shall enter into a firm contract for the
purchase, redemption or acquisition of such Common Stock, or (y) the date of
actual purchase, redemption or acquisition of such Common Stock. For the
purposes of this subsection (h), a purchase, redemption or acquisition of a
Common Stock Equivalent shall be deemed to be a purchase of the underlying
Common Stock, and the computation herein required shall be made on the basis of
the full exercise, conversion or exchange of such Common Stock Equivalent on the
date as of which such computation is required hereby to be made, whether or not
such Common Stock Equivalent is actually exercisable, convertible or
exchangeable on such date.

     (i) Other Provisions applicable to Adjustments under this Section. The
following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect provided for in this Section 4:

          (i) Computation of Consideration. To the extent that any Additional
     Shares of Common Stock or any Common Stock Equivalents (or any warrants or
     other rights therefor)

                                      -10-
<PAGE>

     shall be issued for cash consideration, the consideration received by the
     Issuer therefor shall be the amount of the cash received by the Issuer
     therefor, or, if such Additional Shares of Common Stock or Common Stock
     Equivalents are offered by the Issuer for subscription, the subscription
     price, or, if such Additional Shares of Common Stock or Common Stock
     Equivalents are sold to underwriters or dealers for public offering without
     a subscription offering, the initial public offering price (in any such
     case subtracting any amounts paid or receivable for accrued interest or
     accrued dividends and without taking into account any compensation,
     discounts or expenses paid or incurred by the Issuer for and in the
     underwriting of, or otherwise in connection with, the issuance thereof). To
     the extent that such issuance shall be for a consideration other than cash,
     then, except as herein otherwise expressly provided, the amount of such
     consideration shall be deemed to be the fair value of such consideration at
     the time of such issuance as determined in good faith by the Board of
     Directors of the Issuer. In case any Additional Shares of Common Stock or
     any Common Stock Equivalents (or any warrants or other rights therefor)
     shall be issued in connection with any merger in which the Issuer issues
     any securities, the amount of consideration therefor shall be deemed to be
     the fair value, as determined in good faith by the Board of Directors of
     the Issuer, of such portion of the assets and business of the nonsurviving
     corporation as such Board in good faith shall determine to be attributable
     to such Additional Shares of Common Stock, Common Stock Equivalents, or any
     warrants or other rights therefor, as the case may be. The consideration
     for any Additional Shares of Common Stock issuable pursuant to any warrants
     or other rights to subscribe for or purchase the same shall be the
     consideration received by the Issuer for issuing such warrants or other
     rights plus the additional consideration payable to the Issuer upon
     exercise of such warrants or other rights. The consideration for any
     Additional Shares of Common Stock issuable pursuant to the terms of any
     Common Stock Equivalents shall be the consideration received by the Issuer
     for issuing warrants or other rights to subscribe for or purchase such
     Common Stock Equivalents, plus the consideration paid or payable to the
     Issuer in respect of the subscription for or purchase of such Common Stock
     Equivalents, plus the additional consideration, if any, payable to the
     Issuer upon the exercise, conversion or exchange of such Common Stock
     Equivalents. In case of the issuance at any time of any Additional Shares
     of Common Stock or Common Stock Equivalents in payment or satisfaction of
     any dividends upon any class of stock other than Common Stock, the Issuer
     shall be deemed to have received for such Additional Shares of Common Stock
     or Common Stock Equivalents a consideration equal to the amount of such
     dividend so paid or satisfied.

          (ii) When Adjustments to Be Made. The adjustments required by this
     Section 4 shall be made whenever and as often as any specified event
     requiring an adjustment shall occur, except that any adjustment of the
     number of shares of Common Stock for which this Warrant is exercisable that
     would otherwise be required may be postponed (except in the case of a
     subdivision or combination of shares of the Common Stock, as provided for
     in Section 4(b)) up to, but not beyond the date of exercise if such
     adjustment either by itself or with other adjustments not previously made
     adds or subtracts less than one percent (1%) of the shares of Common Stock
     for which this Warrant is exercisable immediately prior to the making of
     such adjustment. Any adjustment representing a change of less than such
     minimum amount (except as aforesaid) which is postponed shall be carried
     forward and made as soon as such adjustment, together with other
     adjustments required by this Section 4 and not previously made, would
     result in a minimum adjustment or on the date of exercise. For the purpose
     of any adjustment, any

                                      -11-
<PAGE>

     specified event shall be deemed to have occurred at the close of business
     on the date of its occurrence.

          (iii) Fractional Interests. In computing adjustments under this
     Section 4, fractional interests in Common Stock shall be taken into account
     to the nearest one one-hundredth (1/100th) of a share.

          (iv) When Adjustment Not Required. If the Issuer shall take a record
     of the holders of its Common Stock for the purpose of entitling them to
     receive a dividend or distribution or subscription or purchase rights and
     shall, thereafter and before the distribution to stockholders thereof,
     legally abandon its plan to pay or deliver such dividend, distribution,
     subscription or purchase rights, then thereafter no adjustment shall be
     required by reason of the taking of such record and any such adjustment
     previously made in respect thereof shall be rescinded and annulled.

     (j) Form of Warrant after Adjustments. The form of this Warrant need not be
changed because of any adjustments in the Warrant Price or the number and kind
of Securities purchasable upon the exercise of this Warrant.

     (k) Escrow of Warrant Stock. If after any property becomes distributable
pursuant to this Section 4 by reason of the taking of any record of the holders
of Common Stock, but prior to the occurrence of the event for which such record
is taken, and the Holder exercises this Warrant, any shares of Common Stock
issuable upon exercise by reason of such adjustment shall be deemed the last
shares of Common Stock for which this Warrant is exercised (notwithstanding any
other provision to the contrary herein) and such shares or other property shall
be held in escrow for the Holder by the Issuer to be issued to the Holder upon
and to the extent that the event actually takes place, upon payment of the
current Warrant Price. Notwithstanding any other provision to the contrary
herein, if the event for which such record was taken fails to occur or is
rescinded, then such escrowed shares shall be cancelled by the Issuer and
escrowed property returned.

     5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable
detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated (including a description of the
basis on which the Board made any determination hereunder), and the Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such certificate to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with respect to the matters set forth in such certificate may at
the option of the Holder of this Warrant be submitted to one of the national
accounting firms currently known as the "big four" selected by the Holder,
provided that the Issuer shall have ten (10) days after receipt of notice from
such Holder of its selection of such firm to object thereto, in which case such
Holder shall select another such firm and the Issuer shall have no such right of
objection. The firm selected by the Holder of this Warrant as provided in the
preceding sentence shall be instructed to deliver a written opinion as to such

                                      -12-
<PAGE>

     matters to the Issuer and such Holder within thirty (30) days after
     submission to it of such dispute. Such opinion shall be final and binding
     on the parties hereto.

     6. Fractional Shares. No fractional shares of Warrant Stock will be issued
in connection with any exercise hereof, but in lieu of such fractional shares,
the Issuer shall make a cash payment therefor equal in amount to the product of
the applicable fraction multiplied by the Per Share Market Value then in effect.

     7. Intentionally Omitted.

     8. Definitions. For the purposes of this Warrant, the following terms have
the following meanings:

          "Additional Shares of Common Stock" means all shares of Common Stock
     issued by the Issuer after the Original Issue Date, and all shares of Other
     Common, if any, issued by the Issuer after the Original Issue Date, except:
     (1) shares of Common Stock to be issued to strategic partners and/or in
     connection with a strategic merger or acquisition; (2) up to 100,441,177
     shares of Common Stock (as adjusted for any stock dividends, combinations,
     splits, recapitalizations and the like) or the issuance of options to
     purchase shares of Common Stock to employees, officers, directors,
     consultants and vendors in accordance with the Issuer's equity incentive
     policies; (3) the issuance of securities pursuant to an underwritten public
     offering of the Issuer's securities; (4) the conversion or exercise of
     Convertible Securities issued or outstanding on or prior to the date
     hereof; (5) the Warrant Stock; (6) any registered exchange offer to be
     effected by the Issuer to holders of all of its warrants outstanding prior
     to the Original Issue Date, as described in the Lender Common Stock
     Purchase Agreement; (7) the issuance of securities pursuant to the Lender
     Common Stock Purchase Agreement; (8) the issuance of securities pursuant to
     the Purchase Agreement, (9) the issuance of securities pursuant to the
     Exchange Agreements, and (10) New Equity Common Stock and New Equity
     Warrants, in each case for so long as the exercise price of and number of
     securities acquirable pursuant to the New Equity Warrants are not
     adjustable in connection with the issuance of, or as a result of the
     operation of the terms of, this Warrant.

          "Board" shall mean the Board of Directors of the Issuer.

          "Capital Stock" means and includes (i) any and all shares, interests,
     participations or other equivalents of or interests in (however designated)
     corporate stock, including, without limitation, shares of preferred or
     preference stock, (ii) all partnership interests (whether general or
     limited) in any Person which is a partnership, (iii) all membership
     interests or limited liability company interests in any limited liability
     company, and (iv) all equity or ownership interests in any Person of any
     other type.

          "Certificate of Incorporation" means the Certificate of Incorporation
     of the Issuer as in effect on the Original Issue Date, and as hereafter
     from time to time amended, modified, supplemented or restated in accordance
     with the terms hereof and thereof and pursuant to applicable law.

                                      -13-
<PAGE>

          "Common Stock" means the Common Stock, par value $.001 per share, of
     the Issuer and any other Capital Stock into which such stock may hereafter
     be changed.

          "Common Stock Equivalent" means any Convertible Security or warrant,
     option or other right to subscribe for or purchase any Additional Shares of
     Common Stock or any Convertible Security.

          "Convertible Securities" means evidences of Indebtedness, shares of
     Capital Stock or other Securities which are or may be at any time
     convertible into or exchangeable for Additional Shares of Common Stock. The
     term "Convertible Security" means one of the Convertible Securities.

          "Exchange Agreements" means, collectively, the Nortel Note Exchange
     Agreement, the Series H Share Exchange Agreement, the Series J Share
     Exchange Agreement, and the agreement entered into on the date hereof
     between SDS Merchant Fund, L.P. and the Issuer providing for the conversion
     of the entire aggregate principal amount, all accrued and unpaid interest
     thereon and all other amounts payable in respect of the promissory note
     issued by the Issuer to SDS Merchant Fund, L.P. in March, 2002 in an
     initial principal amount of $2,000,000.

          "Governmental Authority" means any governmental, regulatory or
     self-regulatory entity, department, body, official, authority, commission,
     board, agency or instrumentality, whether federal, state or local, and
     whether domestic or foreign.

          "Holders" mean the Persons who shall from time to time own any
     Warrant. The term "Holder" means one of the Holders.

          "Independent Appraiser" means a nationally recognized or major
     regional investment banking firm or firm of independent certified public
     accountants of recognized standing (which may be the firm that regularly
     examines the financial statements of the Issuer) that is regularly engaged
     in the business of appraising the Capital Stock or assets of corporations
     or other entities as going concerns, and which is not affiliated with
     either the Issuer or the Holder of any Warrant.

          "Issuer" means FiberNet Telecom Group, Inc., a Delaware corporation,
     and its successors.

          "Lender Common Stock Purchase Agreement" shall mean that certain
     Common Stock and Warrant Purchase Agreement dated as of November 11, 2002,
     by and among the Company and the lenders under the Company's senior credit
     facility.

          "Majority Holders" means at any time the Holders of Warrants
     exercisable for a majority of the shares of Warrant Stock issuable under
     the Warrants at the time outstanding.

                                      -14-
<PAGE>

          "Nasdaq" means the Nasdaq SmallCap Market.

          "New Equity Common Stock" means the shares of Common Stock issued by
     the Company pursuant to the terms of the Common Stock Purchase Agreement,
     dated as of October 30, 2002, by and among the Company and the purchasers
     listed on Schedule I thereto.

          "New Equity Warrants" means the warrants issued by the Company
     pursuant to the terms of the Common Stock Purchase Agreement, dated as of
     October 30, 2002, by and among the Company and the purchasers listed on
     Schedule I thereto, and the securities issuable upon exercise of such
     warrants.

          "Nortel Note Exchange Agreement" means the Note Exchange Agreement,
     dated as of October 30, 2002, by and between the Company and SDS Merchant
     Fund, L.P. as in effect on the date hereof, pursuant to which the
     promissory note issued by the Company to Nortel Networks Inc. on December
     7, 2001, will be surrendered to the Company in exchange for shares of
     Common Stock.

          "Original Issue Date" means November 11, 2002.

          "OTC Bulletin Board" means the over-the-counter electronic bulletin
     board.

          "Other Common" means any other Capital Stock of the Issuer of any
     class which shall be authorized at any time after the date of this Warrant
     (other than Common Stock) and which shall have the right to participate in
     the distribution of earnings and assets of the Issuer without limitation as
     to amount.

          "Outstanding Common Stock" means, at any given time, the aggregate
     amount of outstanding shares of Common Stock, assuming full exercise,
     conversion or exchange (as applicable) of all options, warrants and other
     Securities which are convertible into or exercisable or exchangeable for,
     and any right to subscribe for, shares of Common Stock that are outstanding
     at such time.

          "Person" means an individual, corporation, limited liability company,
     partnership, joint stock company, trust, unincorporated organization, joint
     venture, Governmental Authority or other entity of whatever nature.

          "Per Share Market Value" means on any particular date (a) the closing
     bid price per share of the Common Stock on such date on Nasdaq or another
     registered national stock exchange on which the Common Stock is then
     listed, or if there is no such price on such date, then the closing bid
     price on such exchange or quotation system on the date nearest preceding
     such date, or (b) if the Common Stock is not listed then on Nasdaq or any
     registered national stock exchange, the closing bid price for a share of
     Common Stock in the over-the-counter market, as reported by the OTC
     Bulletin Board or in the National Quotation Bureau Incorporated or similar
     organization (or agency succeeding to its functions of reporting prices) at
     the close of business on such date, or (c) if the Common Stock is not then
     reported by the OTC Bulletin Board or the National Quotation

                                      -15-
<PAGE>

     Bureau Incorporated (or similar organization or agency succeeding to its
     functions of reporting prices), then the "Pink Sheet" quote for a share of
     the Common Stock on such date, or if there is no such quote on such date,
     then the "Pink Sheet" quote on the date nearest preceding such date, as
     determined in good faith by the Holder, or (d) if the Common Stock is not
     then publicly traded the fair market value of a share of Common Stock as
     determined by an Independent Appraiser selected in good faith by the
     Majority Holders; provided, however, that the Issuer, after receipt of the
     determination by such Independent Appraiser, shall have the right to select
     an additional Independent Appraiser, in which case, the fair market value
     shall be equal to the average of the determinations by each such
     Independent Appraiser; and provided, further that all determinations of the
     Per Share Market Value shall be appropriately adjusted for any stock
     dividends, stock splits or other similar transactions. The determination of
     fair market value by an Independent Appraiser shall be based upon the fair
     market value of the Issuer determined on a going concern basis as between a
     willing buyer and a willing seller and taking into account all relevant
     factors determinative of value, and shall be final and binding on all
     parties. In determining the fair market value of any shares of Common
     Stock, no consideration shall be given to any restrictions on transfer of
     the Common Stock imposed by agreement or by federal or state securities
     laws, or to the existence or absence of, or any limitations on, voting
     rights.

          "Purchase Agreement" means the Common Stock and Warrant Purchase
     Agreement dated as of October 30, 2002, among the Company and lenders under
     the Company's senior credit facility.

          "Securities" means any debt or equity securities of the Issuer,
     whether now or hereafter authorized, any instrument convertible into or
     exchangeable for Securities or a Security, and any option, warrant or other
     right to purchase or acquire any Security. "Security" means one of the
     Securities.

          "Securities Act" means the Securities Act of 1933, as amended, or any
     similar federal statute then in effect.

          "Series H Share Exchange Agreement" means the Share Exchange
     Agreement, dated as of October 30, 2002, by and among the Company and each
     of the purchasers whose names appear on the signature pages thereto,
     pursuant to which the Company will issue Common Stock in exchange for all
     of its issued and outstanding shares of Series H Preferred Stock.

          "Series J Share Exchange Agreement" means the Series J-1 Share
     Exchange Agreement, dated as of October 30, 2002, by and among the Company
     and each of the purchasers whose names appear on the signature pages
     thereto, pursuant to which the Company will issue Common Stock in exchange
     for all of its issued and outstanding shares of Series J-1 Preferred Stock.

                                      -16-
<PAGE>

          "Subsidiary" means any corporation at least 50% of whose outstanding
     Voting Stock shall at the time be owned directly or indirectly by the
     Issuer or by one or more of its Subsidiaries, or by the Issuer and one or
     more of its Subsidiaries.

          "Term" has the meaning specified in Section 1 hereof.

          "Trading Day" means (a) a day on which the Common Stock is traded on
     Nasdaq, or (b) if the Common Stock is not listed on Nasdaq, a day on which
     the Common Stock is traded on any other registered national stock exchange,
     or (c) if the Common Stock is not traded on any other registered national
     stock exchange, a day on which the Common Stock is traded on the OTC
     Bulletin Board, or (d) if the Common Stock is not traded on the OTC
     Bulletin Board, a day on which the Common Stock is quoted in the
     over-the-counter market as reported by the National Quotation Bureau
     Incorporated (or any similar organization or agency succeeding its
     functions of reporting prices); provided, however, that in the event that
     the Common Stock is not listed or quoted as set forth in (a), (b), (c) or
     (d) hereof, then Trading Day shall mean any day except Saturday, Sunday and
     any day which shall be a legal holiday or a day on which banking
     institutions in the State of New York are authorized or required by law or
     other government action to close.

          "Voting Stock" means, as applied to the Capital Stock of any
     corporation, Capital Stock of any class or classes (however designated)
     having ordinary voting power for the election of a majority of the members
     of the Board of Directors (or other governing body) of such corporation,
     other than Capital Stock having such power only by reason of the happening
     of a contingency.

          "Warrants" means the Warrants issued and sold pursuant to the Lender
     Common Stock Purchase Agreement, including, without limitation, this
     Warrant, and any other warrants of like tenor issued in substitution or
     exchange for any thereof pursuant to the provisions of Section 2(c), 2(d)
     or 2(e) hereof or of any of such other Warrants.

          "Warrant Price" initially means U.S. $0.12, as such price may be
     adjusted from time to time as shall result from the adjustments specified
     in this Warrant, including Section 4 hereto.

          "Warrant Share Number" means at any time the aggregate number of
     shares of Warrant Stock which may at such time be purchased upon exercise
     of this Warrant, after giving effect to all prior adjustments and increases
     to such number made or required to be made under the terms hereof.

          "Warrant Stock" means Common Stock issuable upon exercise of any
     Warrant or Warrants or otherwise issuable pursuant to any Warrant or
     Warrants.

                                      -17-
<PAGE>

     9. Other Notices. In case at any time:

          (A)  the Issuer shall make any distributions to the holders of Common
               Stock; or

          (B)  the Issuer shall authorize the granting to all holders of its
               Common Stock of rights to subscribe for or purchase any shares of
               Capital Stock of any class or other rights; or

          (C)  there shall be any reclassification of the Capital Stock of the
               Issuer; or

          (D)  there shall be any capital reorganization by the Issuer; or

          (E)  there shall be any (i) consolidation or merger involving the
               Issuer or (ii) sale, transfer or other disposition of all or
               substantially all of the Issuer's property, assets or business
               (except a merger or other reorganization in which the Issuer
               shall be the surviving corporation and its shares of Capital
               Stock shall continue to be outstanding and unchanged and except a
               consolidation, merger, sale, transfer or other disposition
               involving a wholly-owned Subsidiary); or

          (F)  there shall be a voluntary or involuntary dissolution,
               liquidation or winding-up of the Issuer or any partial
               liquidation of the Issuer or distribution to holders of Common
               Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than ten (10) days prior
to the record date or the date on which the Issuer's transfer books are closed
in respect thereto. This Warrant entitles the Holder to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

     10. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; provided, however, that no such

                                      -18-
<PAGE>

amendment or waiver shall reduce the Warrant Share Number, increase the Warrant
Price, shorten the period during which this Warrant may be exercised or modify
any provision of this Section 10 without the consent of the Holder of this
Warrant.

     11. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW.

     12. Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice prior to 5:00 p.m., eastern time, on a
Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date of mailing, if sent by nationally recognized overnight courier service or
(iv) actual receipt by the party to whom such notice is required to be given.
The addresses for such communications shall be with respect to the Holder of
this Warrant or of Warrant Stock issued pursuant hereto, addressed to such
Holder at its last known address or facsimile number appearing on the books of
the Issuer maintained for such purposes, or with respect to the Issuer,
addressed to:

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

Copies of notices to a Holder shall be sent to Latham & Watkins, 885 Third
Avenue New York, New York 10022 Attention: John N. Toufanian, Esq. Facsimile:
(212) 751-4864. Any party hereto may from time to time change its address for
notices by giving at least ten (10) days written notice of such changed address
to the other party hereto.

     13. Warrant Agent. The Issuer may, by written notice to each Holder of this
Warrant, appoint an agent having an office in New York, New York for the purpose
of issuing shares of Warrant Stock on the exercise of this Warrant pursuant to
subsection (b) of Section 2 hereof, exchanging this Warrant pursuant to
subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at
such office by such agent.

     14. Remedies. The Issuer stipulates that the remedies at law of the Holder
of this Warrant in the event of any default or threatened default by the Issuer
in the performance of or compliance with any of the terms of this Warrant are
not and will not be adequate and that, to the fullest extent permitted by law,
such terms may be specifically enforced by a decree for the

                                      -19-
<PAGE>

specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise.

     15. Successors and Assigns. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
Holder or holder of Warrant Stock.

     16. Modification and Severability. If, in any action before any court or
agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be
deemed modified to the extent necessary to make it enforceable by such court or
agency. If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other
provisions of this Warrant, but this Warrant shall be construed as if such
unenforceable provision had never been contained herein.

     17. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                                      -20-
<PAGE>

     IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and
year first above written.

                                    FIBERNET TELECOM GROUP, INC.

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

                                      -21-
<PAGE>

                                  EXERCISE FORM

                          FIBERNET TELECOM GROUP, INC.

The undersigned _______________, pursuant to the provisions of the within
Warrant, hereby elects to purchase _____ shares of Common Stock of FiberNet
Telecom Group, Inc. covered by the within Warrant.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________
                                                _____________________

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________
                                                _____________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________
                                                _____________________

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. W-___ canceled (or transferred or exchanged) this _____ day of
___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _______________.

                                      -22-

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