Document:

EXHIBIT 10.5
                                                                    ------------

                               EXCHANGE AGREEMENT
                               ------------------

        AGREEMENT, dated as of April 13, 2004, by and among NETWORK-1 SECURITY
SOLUTIONS, INC. (the "Company"), a Delaware corporation with offices at 445 Park
Avenue, Suite 1028, New York, New York 10022, and the holders of the Company's
Series E Convertible Stock (the "Series E Preferred Stock") and the Series D
Convertible Preferred Stock (the "Series D Preferred Stock") signatory hereto
(collectively, the "Preferred Stockholders").

        WHEREAS, as part of a recapitalization of the Company, the Board of
Directors of the Company has determined that it is in the best interest of the
Company to eliminate its outstanding shares of Preferred Stock (the "Preferred
Stock") by exchanging such securities for shares of Common Stock, par value $.01
per share, of the Company (the "Common Stock"), upon the terms and subject to
the conditions set forth herein;

        WHEREAS, each of the Preferred Stockholders and the Company desire that
the Preferred Stockholders exchange (i) 2,483,508 shares of Series E Preferred
Stock which is convertible into 4,967,016 shares of Common Stock and (ii)
231,054 shares of Series D Preferred Stock which is convertible into 391,478
shares of Common Stock, for an aggregate of 6,698,118 shares of Common Stock, or
1.25 times the number of shares of Common Stock for each share of Common Stock
that each Preferred Stockholder would have received upon conversion of their
Preferred Stock, all upon the terms and subject to the conditions set forth
therein. The Common Stock issuable in exchange for the shares of Preferred Stock
are referred to herein as the "Shares."

        NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

                                   ARTICLE I

                     Issuance of Shares for Preferred Stock
                     --------------------------------------

        1.1 Exchange Agreement. At the Closing provided for in Section 1.2, the
Company will issue to each Preferred Stockholder and, subject to the terms and
conditions of this Agreement, each Preferred Stockholder will exchange the
Preferred Stock for the number of Shares set forth in Exhibit A hereto (the
"Exchange") in accordance with Schedule A hereto.

        1.2 The Closing. The closing of the Exchange (the "Closing") shall take
place at the offices of Olshan Grundman Frome Rosenzweig & Wolosky, LLP, Park
Avenue Tower, 65 East 55th Street, New York, New York on the date that this
Agreement is executed by the parties hereto (the time and date of the Closing
being herein referred to as the "Closing Date"). On the Closing Date there will
be delivered to the Preferred Stockholders the Shares on the Closing Date
against delivery and cancellation of the original Preferred Stock in accordance
with Schedule A hereto.

                                       1
<PAGE>

                                   ARTICLE II

           Representations. Warranties. and Agreements of the Company
           ----------------------------------------------------------

        The Company represents and warrants to the Preferred Stockholders as
follows:

        2.1 Corporate Organization and Qualification. The Company is a
corporation duly organized and validly existing under the laws of the State of
Delaware and is qualified to transact business as a foreign corporation in every
jurisdiction in which its ownership, leasing, licensing, or use of property or
assets or the conduct of its business makes such qualification necessary, except
in such jurisdictions where the failure to be so qualified would not have a
material adverse effect on the business, results of operations, financial
condition, or prospects of the Company. The Company has all required power and
authority to own its property and to carry on its business as now conducted and
proposed to be conducted.

        2.2 Validity of Transaction. The Company has all requisite power and
authority to execute, deliver, and perform this Agreement, and to issue the
Shares in exchange for the Preferred Stock as part of the Exchange. All
necessary corporate proceedings of the Company have been duly taken to authorize
the execution, delivery, and performance of this Agreement, and to authorize the
issuance of the Shares for the Preferred Stock as part of the Exchange. This
Agreement, has been duly authorized, executed, and delivered by the Company, and
constitutes the legal, valid, and binding obligation of the Company, and is
enforceable as to the Company in accordance with its respective terms, except as
may be limited by applicable bankruptcy, reorganization, insolvency, moratorium,
or other similar laws or by legal or equitable principles relating to or
limiting creditors' rights generally or as rights to indemnification may be
limited by applicable securities laws. Except as to filings which may be
required under applicable state securities regulations, no consent,
authorization, approval, order, license, certificate, or permit of or from, or
declaration or filing with, any Federal, state, local, or other governmental
authority or of any court or other tribunal is required by the Company in
connection with the transactions contemplated hereby. No consent of any party to
any contract, agreement, instrument, lease, license, arrangement, or
understanding to which the Company is a party, or by which any of its properties
or assets is bound, is required for the execution, delivery, or performance by
the Company of this Agreement, and the execution, delivery, and performance of
this Agreement, will not violate, result in a breach of, conflict with, or (with
or without the giving of notice or the passage of time or both) entitle any
party to terminate or call a default under any such contract, agreement,
instrument, lease, license, arrangement, or understanding, or violate or result
in a breach of any term of the Certificate of Incorporation or By-laws of the
Company, or violate, result in a breach of, or conflict with any law, rule,
regulation, order, judgment, or decree binding on the Company or to which any of
its operations, business, properties, or assets is subject. The Shares issuable
in exchange for the Shares are duly authorized, will be validly issued, fully
paid, and nonassessable, will not have been issued in violation of any
preemptive right of stockholders or rights of first refusal, and the Preferred
Stockholders will have good title to the Shares, free and clear of all liens,
security interests, pledges, charges, encumbrances, stockholders agreements and
voting trusts (other than any created by the Preferred Stockholders).

                                        2
<PAGE>

        2.3 Capitalization. The authorized capital stock of the Company consists
of 40,000,000 shares of Common Stock and 10,000,000 shares of preferred stock,
par value $.01 per share (the "Preferred Stock"), of which 1,250,000 shares have
been designated Series D Convertible Preferred Stock and 3,500,000 shares have
been designated Series E Convertible Preferred Stock, having the designations,
dividend rights, voting powers, conversion and redemption rights, rights on
liquidation or dissolution, and other preferences and relative, participating,
optional, or other preferences and relative, participating, optional, or other
special rights, and the qualifications, limitations or restrictions thereof, set
forth in their respective Certificates of Designations. Immediately prior to the
Closing, the Company shall have 8,314,458 shares of Common Stock, 2,483,508
shares of Series E Convertible Preferred Stock, and 231,054 shares of Series D
Convertible Preferred Stock outstanding. All issued and outstanding shares of
Common Stock and Preferred Stock have been validly issued and are fully paid and
nonassessable and have not been issued in violation of any Federal or state
securities laws. Except for (a) upon the exercise of the options and warrants
which are currently outstanding to purchase 5,481,860 shares of Common Stock
(including options to purchase 3,297,370 under the Company's Stock Option Plan),
there are not, as of the date hereof, any outstanding or authorized
subscriptions, options, warrants, calls, rights, commitments, or any other
agreements obligating the Company to issue (i) any additional shares of its
capital stock or (ii) any securities convertible into, or exercisable or
exchangeable for, or evidencing the right to subscribe for, any shares of its
capital stock. Other than the Company's Stock Option Plan, the Company has not
adopted or authorized any plan for the benefit of its officers, employees, or
directors which require or permit the issuance, sale, purchase, or grant of any
shares of the Company's capital stock, any securities convertible into, or
exercisable or exchangeable for, or evidencing the right to subscribe for any
shares of the Company's capital stock, or any phantom shares or any stock
appreciation rights.

        2.4 SEC Filings. The Company has filed all forms, reports, statements
and other documents required to be filed with (i) the SEC including, without
limitation, (A) all Annual Reports on Form 10-KSB, (B) all Quarterly Reports on
Form 10-QSB, (C) all Reports on Form 8-K, (D) all other reports or registration
statements and (E) all amendments and supplements to all such reports and
registration statements (collectively referred to as the "SEC Reports") and (ii)
any other applicable state securities authorities (all such forms, reports,
statements and other documents in (i) and (ii) of this Section 2.4 being
referred to herein, collectively, as the "Reports"). The Reports (i) were
prepared in all material respects in accordance with the requirements of
applicable law (including, with respect to the SEC Reports, the Securities Act
of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of
1934, as amended (the "Exchange Act"), as the case may be, and the rules and
regulations of the SEC thereunder applicable to such SEC Reports) and (ii) did
not at the time they were filed contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. In addition, since the last quarterly
report of the Company on Form 10-QSB filed with the SEC, there have been no
material events that require disclosure under the Exchange Act.

                                        3
<PAGE>

                                  ARTICLE III

          Representations and Warranties of the Preferred Stockholders
          ------------------------------------------------------------

        Each of the Preferred Stockholders, severally and not jointly,
represents and warrants to the Company as follows:

        3.1 Organization. Such Preferred Stockholder (if not an individual) is
duly organized under the laws of the state of its jurisdiction of organization
and has full power and authority to enter into this Agreement and to consummate
the transactions set forth herein. All necessary proceedings have been duly
taken to authorize the execution, delivery, and performance of this Agreement by
such Preferred Stockholder (if not an individual).

        3.2 Accredited Investor; Access to Information. Such Preferred
Stockholder and, to the knowledge of such Preferred Stockholder, each limited
partner of such Preferred Stockholder in the case of a Preferred Stockholder
which is a limited partnership, and each partner of such Preferred Stockholder
in the case of a Preferred Stockholder which is a general partnership, is an
"accredited investor," as that term is defined in Rule 501 of Regulation D
promulgated under the Securities Act. Such Preferred Stockholder, shareholders
of the general partner of such Preferred Stockholder, if any, and each of the
limited partners of such Preferred Stockholder, if any, has had substantial
experience in private securities transactions like this one and has had a full
opportunity to discuss the business, management, and financial affairs of the
Company with the Company's management. Such Preferred Stockholder has received
all requested documents from the Company and has had a full opportunity to ask
questions of, and receive answers from, the officers of the Company.

        3.3 Authorization. All actions on the part of such Preferred Stockholder
necessary for the authorization, execution, delivery, and performance by such
Preferred Stockholder of this Agreement have been taken. This Agreement has been
duly authorized, executed, and delivered by such Preferred Stockholder, is the
legal, valid, and binding obligation of such Preferred Stockholder, and are
enforceable as to such Preferred Stockholder in accordance with their respective
terms, except as may be limited by applicable bankruptcy, reorganization,
insolvency, moratorium, or other similar laws or by legal or equitable
principles relating to or limiting creditors' rights generally or as rights to
indemnification may be limited by applicable securities laws.

        3.4 Investment Intent. Such Preferred Stockholder is acquiring the
Shares for its, his or her own account for investment and not with a view to, or
for sale in connection with, any public distribution thereof in violation of the
Securities Act. Such Preferred Stockholder understands that Shares have not been
registered for sale under the Securities Act or qualified under applicable state
securities laws and that the Shares are being offered and sold to such Preferred
Stockholder pursuant to one or more exemptions. Such Preferred Stockholder
understands that it, he or she must bear the economic risk of the investment in
the Company for an indefinite period of time, as the Shares cannot be sold
unless subsequently registered under the Securities Act and qualified under
state securities laws, unless an exemption from such registration and
qualification is available.

                                        4
<PAGE>

        3.5 Transfer of Securities. Such Preferred Stockholder will not sell or
otherwise dispose of the Shares unless (a) a registration statement with respect
thereto has become effective under the Securities Act and such Shares have been
qualified under applicable state securities laws or (b) there is presented to
the Company notice of the proposed transfer and, if it so requests, a legal
opinion reasonably satisfactory to the Company that such registration and
qualification is not required; provided, however, that no such registration or
qualification or opinion of counsel shall be necessary for a transfer by such
Preferred Stockholder (i) to any entity controlled by, or under common control
with, such Preferred Stockholder (ii) to a partner or officer of such Preferred
Stockholder, (iii) to a partner or officer of the general partner of such
Preferred Stockholder, or (iv) to the spouse, lineal descendants, estate, or a
trust for the benefit of any of the foregoing, provided the transferee agrees in
writing to be subject to the terms hereof to the same extent as if he were such
Preferred Stockholder. Such Preferred Stockholder consents that any transfer
agent of the Company may be instructed not to transfer any Shares unless it
receives satisfactory evidence of compliance with the foregoing provisions, and
that there may be endorsed upon any certificate representing such shares (and
any certificates issued in substitution therefor) the following legend calling
attention to the foregoing restrictions on transferability of such shares,
stating in substance:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
          OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD
          OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
          STATEMENT WITH RESPECT TO THE SECURITIES EVIDENCED BY THIS
          CERTIFICATE, OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL
          REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION
          UNDER SUCH ACT AND APPLICABLE SECURITIES LAWS IS NOT REQUIRED."

The Company shall, upon the request of any holder of a stock certificate bearing
the foregoing legend and the surrender of such certificate, issue a new stock
certificate without such legend if (A) the stock evidenced by such certificate
has been effectively registered under the Securities Act and qualified under any
applicable state securities law and sold by the holder thereof in accordance
with such registration and qualification, or (B) such holder shall have
delivered to the Company a legal opinion reasonably satisfactory to the Company
to the effect that the restrictions set forth herein are no longer required or
necessary under the Securities Act or any applicable state law.

                                       5
<PAGE>

                                   ARTICLE IV

                             Additional Provisions.
                             ----------------------

        4.1 Indemnification. From and after the Closing, the Company, on the one
hand, and the Preferred Stockholders (severally and not jointly), on the other
hand, shall indemnify and save harmless the other (including officer, directors,
employees, agents and representatives) against any loss, claim, liability,
expense (including reasonable attorney's fees) or other damage caused by or
arising out of (i) the breach of any representation or warranty made by any such
party or (ii) the failure by the party against whom indemnification is sought to
perform any of its covenants or agreements in this Agreement.

        4.2 Communications. All notices or other communications hereunder shall
be in writing and shall be given by registered or certified mail (postage
prepaid and return receipt requested), by an overnight courier service which
obtains a receipt to evidence delivery, or by telex or facsimile transmission
(provided that written confirmation of receipt is provided), addressed as set
forth below:

       If to the Company:

                     Network- 1 Security Solutions, Inc.
                     445 Park Avenue, Suite 1028
                     New York, New York 10022
                     Attention: Corey M. Horowitz, Chairman and Chief Executive
                                Officer

       With a copy to:

                     Olshan Grundman Frome Rosenzweig & Wolosky, LLP
                     Park Avenue Tower
                     65 East 55th Street
                     New York, New York 10022
                     Attention: Sam Schwartz, Esq.

        If to the Preferred Stockholders, at their respective addresses as set
forth on Exhibit A hereto, or such other address as any party may designate to
the other in accordance with the aforesaid procedure. All notices and other
communications sent by overnight courier service shall be deemed to have been
given as of the next business day after delivery thereof to such courier
service, those given by telex or facsimile transmission shall be deemed given
when sent, and all notices and other communications sent by mail shall be deemed
given as of the third business day after the date of deposit in the United
States mail.

        4.3 Successors and Assigns. The Company may not sell, assign, transfer,
or otherwise convey any of its rights or delegate any of its duties under this
Agreement, except to a corporation which has succeeded to substantially all of
the business and assets of the Company and has assumed in writing its
obligations under this Agreement, and this Agreement shall be

                                        6
<PAGE>

binding on the Company and such successor. This Agreement shall be binding upon,
inure to the benefit of, and be enforceable by, the Preferred Stockholders and
their successors and assigns.

        4.4 Amendments and Waivers. Neither this Agreement nor any term hereof
may be changed or waived (either generally or in a particular instance and
either retroactively or prospectively) absent the written consent each party
hereto.

        4.5 Survival of Representations. The representations, warranties,
covenants, and agreements made herein or in any certificate or document executed
in connection herewith shall survive the execution and delivery of this
Agreement and the issuance and delivery of the Shares to the Preferred
Stockholders.

        4.6 Delays or Omissions; Waiver. No delay or omission to exercise any
right, power, or remedy accruing to either the Company or the Preferred
Stockholders upon any breach or default by the other under this Agreement shall
impair any such right, power, or remedy no shall it be construed to be a waiver
of any such breach or default, or any acquiescence therein 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.

        4.7 Entire Agreement; Binding Effect. This Agreement (together with
Schedule A attached hereto) contains the entire understanding of the parties
with respect to their respective subject matter and all prior negotiations,
discussions, commitments, and understandings heretofore had between them with
respect thereto are merged herein and therein. This Agreement and the Exchange
shall be binding on each Preferred Stockholder who executes this Agreement,
provided, that, Preferred Stockholders holding at least 75% of the outstanding
shares of Preferred Stock have executed this Agreement (the "Required
Percentage"). The failure of any Preferred Stockholder named in Exhibit A to
execute this Agreement shall not effect the Closing of the Exchange with respect
to those Preferred Stockholders who have executed this Agreement so long as the
Agreement has been signed by the Required Percentage.

        4.8 Headings. All article and section headings herein are inserted for
convenience only and shall not modify or affect the construction or
interpretation of any provision of this Agreement.

        4.9 Counterparts; Governing Law. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same instrument. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
New York, without giving effect to conflict of laws.

        4.10 Further Actions. At any time and from time to time, each party
agrees, without further consideration, to take such actions and to execute and
deliver such documents as may be reasonably necessary to effectuate the purposes
of this Agreement.

                                       7
<PAGE>

        IN WITNESS WHEREOF, this Agreement has been duly executed on the date
hereinabove set forth.

                                       NETWORK-1 SECURITY SOLUTIONS, INC.

                                       s/Corey M. Horowitz
                                       -----------------------------------------
                                       Name:  Corey M. Horowitz
                                       Title:  Chairman and Chief Executive
                                               Officer

                                       APPLEGREEN PARTNERS

                                       s/Seth Lieber
                                       -----------------------------------------
                                       Name:    Seth Lieber
                                       Title:      Partner

                                       BROOKWOOD PARTNERS, L.P.

                                       s/Barry Rubenstein
                                       -----------------------------------------
                                       Name:    Barry Rubenstein
                                       Title:      General Partner

                                       CASILLI REVOCABLE TRUST

                                       S/Gerald S. Casilli
                                       -----------------------------------------
                                       Name:   Gerald S. Casilli
                                       Title:     Trustee

                                       CMH CAPITAL MANAGEMENT CORP.

                                       S/Corey M. Horowitz
                                       -----------------------------------------
                                       Name: Corey M. Horowitz
                                       Title: President

                                       s/Andrew Fingerhut
                                       -----------------------------------------
                                       Andrew Fingerhut

                                        8
<PAGE>

                                       s/Barry Fingerhut
                                       -----------------------------------------
                                       Barry Fingerhut

                                       s/Robert Gladstone
                                       -----------------------------------------
                                       Robert Gladstone

                                       s/Amy Katz
                                       -----------------------------------------
                                       Amy Katz

                                       s/Irwin Lieber
                                       -----------------------------------------
                                       Irwin Lieber

                                       s/Jonathan Lieber
                                       -----------------------------------------
                                       Jonathan Lieber

                                       s/Seth Lieber
                                       -----------------------------------------
                                       Seth Lieber

                                       s/ David Nussbaum
                                       -----------------------------------------
                                       David Nussbaum

                                       s/Jennifer Olsen
                                       -----------------------------------------
                                       Jennifer Olsen

                                       s/Harvey Pollak
                                       -----------------------------------------
                                       Harvey Pollak

                                       s/Barry Rubenstein
                                       -----------------------------------------
                                       Barry Rubenstein

                                       s/Marilyn Rubenstein
                                       -----------------------------------------
                                       Marilyn Rubenstein

                                       s/James Scibelli
                                       -----------------------------------------
                                       James Scibelli

                                        9
<PAGE>

                                       SENECA VENTURES

                                       By:s/Barry Rubenstein
                                       -----------------------------------------
                                       Name:  Barry Rubenstein
                                       Title:    General Partner

                                       s/Donna Slavitt
                                       -----------------------------------------
                                       Donna Slavitt

                                       s/John Slavitt
                                       -----------------------------------------
                                       John Slavitt

                                       WHEATLEY  PARTNERS, L.P.

                                       By:s/Barry Rubenstein
                                       -----------------------------------------
                                       Name:  Barry Rubenstein
                                       Title:    CEO, WHEATLEY PARTNERS LLC
                                                 General Partner

                                       WHEATLEY PARTNERS II, L.P.

                                       By:s/Barry Rubenstein
                                       -----------------------------------------
                                       Name: Barry Rubenstein
                                       Title:   General Partner

                                       WHEATLEY FOREIGN PARTNERS, L.P.

                                       By:s/Barry Rubenstein
                                       -----------------------------------------
                                       Name:  Barry Rubenstein
                                       Title:     CEO, WHEATLEY PARTNERS LLC
                                                          General Partner

                                       WOODLAND PARTNERS

                                       By:s/Barry Rubenstein
                                       -----------------------------------------
                                       Name:  Barry Rubenstein
                                       Title:     General Partner

                                       10
<PAGE>

                                       WOODLAND VENTURE FUND

                                       By:s/Barry Rubenstein
                                       -----------------------------------------
                                       Name:  Barry Rubenstein
                                       Title:    General Partner

                                       s/Emauel Pearlman
                                       -----------------------------------------
                                       Emanuel Pearlman

                                       SANDLER COMPANY INVESTMENT PARTNERS

                                       Sandler Co-Investment Partners, L.P.
                                       By:  Sandler Capital Management, General
                                            Partner
                                       By:  MJDM Corp., a General Partner
                                       s/Moira Mitchell
                                       -----------------------------------------
                                       Name:  Moira Mitchell
                                       Title:     President

                                       11
<PAGE>

                                   SCHEDULE A

                             PREFERRED STOCKHOLDERS

                      Series E Convertible Preferred Stock
                      ------------------------------------
<TABLE><CAPTION>
                                                                 Number of Shares
                                                                 of Common Stock      Number of Shares of
       Name and Address                   Number of Shares of    Upon Conversion       Common Stock Upon
   of Preferred Stockholder                 Preferred Stock     of Preferred Stock         Exchange
   ------------------------                  ------------          ------------          ------------
<S>                                                <C>                   <C>                   <C>
Applegreen Partners                                35,377                70,754                88,442
c/o Jonathan Lieber
271 Hamilton Road
Chappaqua, NY 10514

Brookwood Partners, L.P.                          117,924               235,848               294,810
68 Wheatley Road
Brookville, NY 11545

Casilli Revocable Trust                            47,169                94,338               117,922
2905 Woodside Road
Woodside, CA 94062

Andrew Fingerhut                                   11,792                23,584                29,480
70 East 10th St. Apt. 11L
New York, NY 10003

Barry Fingerhut                                   165,094               330,188               412,735
Wheatley Partners, L.P.
825 Third Avenue, 32th Floor
New York, New York 10028-1170

Robert Gladstone                                   11,792                23,584                29,480
25 Evans Drive
Brookville, NY 11545

CMH Capital Management Corp.                    1,084,935             2,169,870             2,712,337
445 Park Avenue, Suite 1028
New York, NY 10022
Attn: Corey M. Horowitz, President

Amy Katz                                            9,433                18,866                23,583
26 North Moore Street, Apt. 8W
New York, NY 10013

Irwin Lieber                                      165,094               330,188               412,735
8 Applegreen Drive
Old Westbury, NY 11568

Jonathan Lieber                                    11,792                23,584                29,480
271 Hamilton Road
Chappaqua, NY 10514
</TABLE>

                                       12
<PAGE>

<TABLE><CAPTION>
                                                                 Number of Shares
                                                                 of Common Stock      Number of Shares of
       Name and Address                   Number of Shares of    Upon Conversion       Common Stock Upon
   of Preferred Stockholder                 Preferred Stock     of Preferred Stock         Exchange
   ------------------------                  ------------          ------------          ------------
<S>                                                <C>                   <C>                   <C>
Seth Lieber                                        11,792                23,584                29,480
103 Greene Street
New York, NY 10012-3859

David Nussbaum                                     11,792                23,584                29,480
83 Village Road
Roslyn Heights, NY 11577

Jennifer Olsen                                     11,792                23,584                29,480
c/o Lawrence S. Dolin
16111 Parkland Drive
Shaker Heights, OH 44120

Harvey Pollak                                      11,792                23,584                29,480
14 Pine Drive North
Roslyn, NY 11576

Barry Rubenstein                                   47,169                94,338               117,922
68 Wheatley Road
Brookville, NY 11545

James Scibelli                                     23,584                47,168                58,960
Roberts & Greene, Inc.
One Hollow Lane, Suite 208
Lake Success, NY 11040

Seneca Ventures                                   165,094               330,188               412,735
68 Wheatley Road
Brookville, NY 11545

Donna Slavitt                                      35,377                70,754                88,442
1085 Park Avenue, Apt. 3B
New York, NY 10028

John Slavitt                                        9,433                18,866                23,582
250 Baldwin Avenue, Apt. 801
San Mateo, CA 94401

Wheatley Partners, L.P.                            86,792               173,584               216,980
80 Cuttermill Road, Suite 311
Great Neck, NY 11021

Wheatley Partners II, L.P.                         94,339               188,678               235,848
80 Cuttermill Road, Suite 311
Great Neck, NY 11021

Wheatley Foreign Partners, L.P.                     7,547                15,094                18,868
80 Cuttermill Road, Suite 311
Great Neck, NY 11021
</TABLE>
                                       13
<PAGE>

<TABLE><CAPTION>
                                                                 Number of Shares
                                                                 of Common Stock      Number of Shares of
       Name and Address                   Number of Shares of    Upon Conversion       Common Stock Upon
   of Preferred Stockholder                 Preferred Stock     of Preferred Stock         Exchange
   ------------------------                  ------------          ------------          ------------
<S>                                                <C>                   <C>                   <C>
Woodland Partners                                  94,339               188,678               235,848
68 Wheatley Road
Brookville, NY 11545

Woodland Venture Fund                             212,264               424,528               530,660
68 Wheatley road
Brookville, NY 11545
                                             ------------          ------------          ------------

     Total Series E Preferred Stock             2,483,508             4,967,016             6,208,770
                                             ============          ============          ============
</TABLE>

                                       14
<PAGE>

                      Series D Convertible Preferred Stock
                      ------------------------------------
<TABLE><CAPTION>
                                                                 Number of Shares
                                                                 of Common Stock      Number of Shares of
       Name and Address                   Number of Shares of    Upon Conversion       Common Stock Upon
   of Preferred Stockholder                 Preferred Stock     of Preferred Stock         Exchange
   ------------------------                  ------------          ------------          ------------
<S>                                                <C>                   <C>                   <C>
Woodland Venture Fund                              69,379               117,550               146,936
68 Wheatley Road
Brookville, NY 11545

Seneca Ventures                                    34,689                58,774                73,468
68 Wheatley Road
Brookville, NY 11545

Woodland Partners                                  34,689                58,774                73,468
68 Wheatley Road
Brookville, NY 11545

Irwin Lieber                                       34,689                58,774               73, 468
Wheatley Partners, L.P.
825 Third Avenue
New York, NY 10028-1170

Barry Fingerhut                                    34,689                58,774                73,468
Wheatley Partners, L.P.
825 Third Avenue
New York, NY 10028-1170

Applegreen Partners                                 8,672                14,693                18,364
c/o Jonathan Lieber
271 Hamilton Road
Chappaqua, NY 10514

Emanuel Pearlman                                    4,098                 6,943                 8,677
Liberation Investment Group
11766 Wilshire Blvd., Suite 870
Los Angeles, CA 90025

Barry Rubenstein                                      495                   839                 1,049
68 Wheatley Road
Brookville, NY 11545

Marilyn Rubenstein                                    495                   839                 1,049
68 Wheatley Road
Brookville, NY 11545

Sandler Company Investment Partners                 9,159                15,518                19,398
                                             ------------          ------------          ------------
767 Fifth Avenue - 45th Floor
New York, NY 10153
    Total Series D Preferred Stock                231,054               391,478               489,348
                                             ------------          ------------          ------------

    TOTAL PREFERRED STOCK (SERIES E AND
         SERIES D)                              2,714,562             5,358,494             6,698,118
                                             ============          ============          ============
</TABLE>
                                       15EXHIBIT 4.09
                                                                    ------------

         THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF
         (THESE "SECURITIES") HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, ("THE SECURITIES ACT") OR ANY
         STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
         PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
         STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT
         AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
         EXEMPTION UNDER SUCH LAWS, TOGETHER WITH, IN CERTAIN CASES, AN
         OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT
         SUCH REGISTRATION IS NOT REQUIRED. THE SECURITIES REPRESENTED BY
         THIS CERTIFICATE ARE SUBJECT TO CERTAIN VOTING AGREEMENTS AS SET
         FORTH IN A STOCKHOLDERS AGREEMENT, AS AMENDED FROM TIME TO TIME,
         BY AND AMONG THE REGISTERED OWNER OF THIS CERTIFICATE, THE
         COMPANY AND CERTAIN OTHER HOLDERS OF SECURITIES OF THE COMPANY, A
         COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES OF THE
         SECRETARY OF THE COMPANY.

                                  DSL.NET, INC.
                           WARRANT TO PURCHASE SHARES
                                 OF COMMON STOCK

Date of Issuance:  December 22, 2003                         Certificate No.___

         THIS CERTIFIES THAT, for value received,_____________________________
_____________ and its assigns are entitled to subscribe for and purchase
_________ shares of duly authorized, validly issued, fully paid and
nonassessable Common Stock ((the "Common Stock") as adjusted pursuant to Section
4 hereof, the "Shares") of DSL.NET, INC., a Delaware corporation (the
"Company"), at the price of $0.4423 per share (such price and such other price
as shall result, from time to time, from the adjustments specified in Section 4
hereof is herein referred to as the "Warrant Price"), subject to the provisions
and upon the terms and conditions hereinafter set forth. As used herein the term
"Date of Grant" shall mean December 22, 2003. The term "Warrant" as used herein
shall be deemed to include any warrants issued upon transfer or partial exercise
of this Warrant unless the context clearly requires otherwise.

         1. Term. The purchase right represented by this Warrant is exercisable,
in whole or in part, at any time and from time to time from the Date of Grant
through July 18, 2006.

         2. Method of Exercise; Payment; Issuance of New Warrant. Subject to
Section 1 hereof, the purchase right represented by this Warrant may be
exercised by the holder hereof, in whole or in part and from time to time, at
the election of the holder hereof, by (a) the surrender of this Warrant (with
the notice of exercise substantially in the form attached hereto as Exhibit A-1
duly completed and executed) at the principal office of the Company and the
payment to the Company, by certified or bank check, or by wire transfer to an
account designated by the Company (a "Wire Transfer") of an amount equal to the
then applicable Warrant Price multiplied by the number of Shares then being
<PAGE>
purchased, or (b) if in connection with a registered public offering of the
Company's securities, the surrender of this Warrant (with the notice of exercise
form attached hereto as Exhibit A-2 duly completed and executed) at the
principal office of the Company together with notice of arrangements reasonably
satisfactory to the Company for payment to the Company either by certified or
bank check or by Wire Transfer from the proceeds of the sale of shares to be
sold by the holder in such public offering of an amount equal to the then
applicable Warrant Price per share multiplied by the number of Shares then being
purchased, or (c) exercise of the "net issuance" right provided for in Section
10.2 hereof, or (d) the tender of all or a portion of a Senior Secured
Promissory Note issued by the Company pursuant to the Note and Warrant Purchase
Agreement dated as of July 18, 2003 (the "Purchase Agreement") in a principal
amount equal to the then applicable Warrant Price multiplied by the number of
Shares then being purchased. The person or persons in whose name(s) any
certificate(s) representing the Shares shall be issuable upon exercise of this
Warrant shall be deemed to have become the holder(s) of record of, and shall be
treated for all purposes as the record holder(s) of, the shares represented
thereby (and such shares shall be deemed to have been issued) immediately prior
to the close of business on the date or dates upon which this Warrant is
exercised. In the event of any exercise of the rights represented by this
Warrant, certificates for the shares of stock so purchased shall be delivered to
the holder hereof as soon as practicable and, if requested by the holder of this
Warrant, the Company shall cause its transfer agent to deliver the certificate
representing Shares issued upon exercise of this Warrant to a broker or other
person (as directed by the holder exercising this Warrant) within the time
period required to settle any trade made by the holder after exercise of this
Warrant.

         3. Stock Fully Paid; Reservation of Shares. All Shares that may be
issued upon the exercise of the rights represented by this Warrant will, upon
issuance pursuant to the terms and conditions herein, be fully paid and
nonassessable, and free from all taxes, liens and charges with respect to the
issue thereof. During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized, and
reserved for the purpose of the issue upon exercise of the purchase rights
evidenced by this Warrant, a sufficient number of shares of its Common Stock to
provide for the exercise of the rights represented by this Warrant.

         4. Adjustment of Warrant Price and Number of Shares. The number and
kind of securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to adjustment from time to time upon the occurrence of
certain events, as follows:

            (a) Reclassification or Merger. In case of any reclassification or
change of securities of the class issuable upon exercise of this Warrant (other
than a change in par value, or from par value to no par value, or from no par
value to par value, or as a result of a subdivision or combination), or in case
of any merger of the Company with or into another corporation (other than a
merger with another corporation in which the Company is the surviving
corporation and which does not result in any reclassification or change of
outstanding securities issuable upon exercise of this Warrant), the Company, or
such surviving corporation, as the case may be, shall duly execute and deliver
to the holder of this Warrant a new Warrant (which, if not in substantially the
form of this Warrant, shall be in form and substance satisfactory to the holder
of this Warrant), or the Company shall make appropriate provision without the
issuance of a new Warrant, so that the holder of this Warrant shall have the
right to receive upon exercise of this Warrant, at a total purchase price not to
exceed that payable upon the exercise of the then unexercised portion of this
Warrant, and in

                                        2
<PAGE>
lieu of the shares of Common Stock theretofore issuable upon exercise of this
Warrant, the kind and amount of shares of stock, other securities, money and
property receivable upon such reclassification, change or merger by a holder of
the number of shares of Common Stock purchasable under this Warrant immediately
preceding the consummation of such reclassification or merger. Such new Warrant
shall provide for adjustments that shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Section 4. The provisions of
this subparagraph (a) shall similarly apply to successive reclassifications,
changes and mergers.

            (b) Subdivision or Combination of Shares. If the Company at any time
while this Warrant remains outstanding and unexpired shall subdivide or combine
its outstanding shares of Common Stock, the Warrant Price shall be
proportionately decreased and the number of Shares issuable hereunder shall be
proportionately increased in the case of a subdivision and the Warrant Price
shall be proportionately increased and the number of Shares issuable hereunder
shall be proportionately decreased in the case of a combination.

            (c) Stock Dividends and Other Distributions. If the Company at any
time while this Warrant is outstanding and unexpired shall (i) pay a dividend
with respect to its Common Stock payable in Common Stock, then the Warrant Price
shall be adjusted, from and after the record date fixed for the determination of
the shareholders of the Company entitled to receive such dividend or
distribution, to that price determined by multiplying the Warrant Price in
effect immediately prior to such date of determination by a fraction (A) the
numerator of which shall be the total number of shares of Common Stock
outstanding immediately prior to such dividend or distribution, and (B) the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately after such dividend or distribution; or (ii) make any
other distribution with respect to Common Stock (except any distribution
specifically provided for in Sections 4(a) and 4(b)), then, in each such case,
provision shall be made by the Company such that the holder of this Warrant
shall receive upon exercise of this Warrant a proportionate share of any such
dividend or distribution as though it were the holder of the Shares as of the
record date fixed for the determination of the shareholders of the Company
entitled to receive such dividend or distribution.

            (d) Adjustment for Issuance of Shares of Common Stock Below Warrant
Price. If the Company shall issue, or be deemed to issue (as provided below),
any additional shares of Common Stock other than Excluded Stock, as defined
below ("Additional Shares of Common Stock") for a consideration per share less
than the Warrant Price in effect immediately prior to the issuance of such
Additional Shares of Common Stock (excluding stock splits, stock dividends,
combinations, reclassifications and capital reorganizations which are covered in
Sections 4(a), 4(b) and 4(c) above), the Warrant Price shall be reduced
concurrent with each such issuance to a price calculated as follows:

Adjusted Warrant Price =
(Outstanding  Stock x Warrant Price) + Additional Stock Consideration
---------------------------------------------------------------------
 Outstanding  Stock + No. of Additional Shares of Common Stock

As used herein:

"Additional Stock Consideration" means the consideration received by the Company
upon the issuance of the Additional Shares of Common Stock.

                                        3
<PAGE>
"Convertible Securities" means any evidence of indebtedness, shares or
securities, in each case convertible into or exchange for Additional Shares of
Common Stock.

"Excluded Stock" means; (a) securities issued, or deemed issued (as provided
below), to directors, officers, employees or consultants of the Company or a
subsidiary of the Company in connection with their service as directors of the
Company or a subsidiary of the Company, their employment by the Company or a
subsidiary of the Company or their retention as consultants by the Company or a
subsidiary of the Company under the Company's Amended and Restated 1999 Stock
Plan, the Vector Internet Services Inc. 1997 Stock Option Plan, the Vector
Internet Services Inc. 1999 Stock Option Plan, the Company's 1999 Employee Stock
Purchase Plan or the Company's Amended and Restated 2001 Stock Option and
Incentive Plan (the "Plans"), plus such additional number of shares issued or
issuable to directors, officers, employees or consultants of the Company or a
subsidiary of the Company under any amendment of the Plans, or under other
plans, adopted or assumed by the Company with the approval of the Board of
Directors of the Company, plus such number of shares of Common Stock which are
repurchased by the Company from such persons pursuant to contractual rights held
by the Company and at repurchase prices not exceeding the respective original
purchase prices paid by such persons to the Company therefor; (b) shares of
Common Stock issuable upon exercise of warrants outstanding as of the date
hereof; (c) shares of Common Stock issued, or deemed issued (as provided below),
pursuant to a merger, consolidation or stock or asset acquisition approved by
the Company's Board of Directors; (d) shares of Common Stock issuable upon the
conversion of the Series X Preferred Stock or the Series Y Preferred Stock; (e)
shares of Common Stock issued as payment of interest in accordance with the
terms of the Notes issued pursuant to the Purchase Agreement; and (f) the
issuance, or deemed issuance, of securities of the Company for any purpose and
in any amount as approved by the Company's Board of Directors, including the
approval of (i) a majority of the Series X Directors, (ii) the Series Y Director
(as defined in the Amended and Restated Stockholders Agreement dated, as of July
18, 2003 among the Company and the Investors named therein (the "Stockholders
Agreement")), if any, and (iii) the Warrant Investor Directors (as defined in
the Stockholders Agreement), if any.

"No. of Additional Shares of Common Stock" means the number of units of
Additional Shares of Common Stock issued in connection with the issuance of the
same.

"Options" means rights, options or warrants to subscribe for, purchase or
otherwise acquire shares of Common Stock or Convertible Securities.

"Outstanding Stock" means the total number of shares of Common Stock outstanding
plus the total number of shares of Common Stock issuable upon conversion or
exercise of outstanding Convertible Securities (including this Warrant and all
other warrants) immediately prior to the issuance of the Additional Shares of
Common Stock; provided that the number of shares of Common Stock outstanding at
any given time shall not include shares owned or held by or for the account of
the Company.

No adjustment in the Warrant Price need be made if such adjustment would result
in a change in the Warrant Price of less than $0.01. Any such adjustment which
is not made shall be carried forward and shall be made at the time of and
together with any subsequent adjustment which, on a cumulative basis, amounts to
an adjustment of $0.01 or more in the Warrant Price. No adjustment in

                                        4
<PAGE>
the Warrant Price of this Warrant shall be made in respect of the issuance of
Additional Shares of Common Stock unless the consideration per share for such
Additional Shares of Common Stock issued or deemed to be issued (as provided
below) by the Company is less than the Warrant Price then in effect on the date
of, and immediately prior to, such issue, for this Warrant.

For purposes of making any adjustment required under this Section 4(d), the
consideration received by the Company for any issue or sale of securities shall
(a) to the extent that it consists of cash be computed as the amount of cash
received by the Company without deduction of any underwriting or similar
commissions, compensation or concessions paid or allowed by the Company in
connection with such issue or sale, (b) to the extent that it consists of
property other than cash, be computed at the fair market value of that property
as determined in good faith by the Board of Directors, and (c) if Additional
Shares of Common Stock, Convertible Securities or right or Options are issued or
sold together with other securities or other assets of the Company for a
consideration which covers both, be computed (as provided in clauses (a) and (b)
above) as the portion of the consideration so received that may be reasonably
determined in good faith by the Board of Directors to be allocable to such
Additional Shares of Common Stock, Convertible Securities or rights or Options.

If the holders of a majority-in-interest of the warrants issued pursuant to the
Purchase Agreement shall, in good faith, disagree with any determination made by
the Board of Directors of the Company of the fair market value of any property
(including without limitation any securities other than shares of Common Stock)
pursuant to the warrants issued pursuant to the Purchase Agreement (such holders
hereinafter referred to as the "Requesting Holders"), and such disagreement is
in respect of property valued by the Board of Directors of the Company at more
than $500,000, then the Requesting Holders may by written notice to the Company
(an "Appraisal Notice"), given within 15 days after notice to the holders of the
warrants issued pursuant to the Purchase Agreement following such determination,
elect to contest such determination; provided, however, that the holders of the
warrants issued pursuant to the Purchase Agreement may not seek appraisal or any
determination of fair market value to the extent that the Company has received a
fairness opinion or other appraisal from an independent appraiser selected by
the Board of Directors of the Company (including the Warrant Investor Directors,
if any) in connection with the transaction giving rise to such determination.
Within 15 days after an Appraisal Notice, the Company shall engage an Appraiser
to make an independent determination of such fair market value (the "Appraiser's
Determination"), and to deliver to the Company and the holder of this Warrant a
report describing its methodology and results in reasonable detail within 15
days of such engagement. The Company and the holder of this Warrant shall be
afforded reasonable opportunities to discuss the appraisal with the Appraiser.
The Appraiser's Determination shall be final and binding on the Company and the
holder of this Warrant, absent manifest error. The costs of conducting an
appraisal, including all fees and expenses of the Appraiser, shall be borne one
half by the Requesting Holders (among the Requesting Holders, pro rata according
to the number of shares issuable upon exercise of outstanding warrants issued
under the Purchase Agreement that are held by the Requesting Holders) and one
half by the Company. "Appraiser" means an independent appraiser chosen by the
Board of Directors of the Company with the consent of the Requesting Holder with
the greatest number of Warrant Shares issuable upon exercise of the warrants
issued pursuant to the Purchase Agreement, which consent shall not be
unreasonably withheld or delayed.

                                        5
<PAGE>
For purposes of the adjustment required under this Section 4(d), if at any time
or from time to time after the Date of Grant, the Company issues or sells any
Options or Convertible Securities, then in each case the Company shall be deemed
to have issued at the time of the issuance of such Options or Convertible
Securities the maximum number of Additional Shares of Common Stock (as set forth
in the instruments relating thereto, giving effect to any provision contained
therein for a subsequent upward adjustment of such number) issuable upon
exercise or conversion thereof and to have received as consideration for the
issuance of such shares of Common Stock an amount equal to the total amount of
consideration, if any, received by the Company for the issuance of such Options
or Convertible Securities plus, in the case of such Options, the minimum amounts
of consideration, if any (as set forth in the instruments relating thereto,
giving effect to any provision contained therein for a subsequent downward
adjustment of such consideration), payable to the Company upon the exercise of
such Options and, in the case of Convertible Securities, the minimum amounts of
consideration, if any, payable to the Company upon the subsequent conversion of
any such Convertible Security (other than by cancellation of liabilities or
obligations evidenced by such Convertible Securities). No further adjustment of
the Warrant Price, adjusted upon the issuance of such Options or Convertible
Securities, shall be made as a result of the actual issuance of Additional
Shares of Common Stock on the exercise of any such Options or the conversion of
any such Convertible Securities. If any such Options or the conversion privilege
represented by any such Convertible Securities shall expire without having been
exercised, the Warrant Price adjusted upon the issuance of such Options or
Convertible Securities shall be readjusted to the Warrant Price which would have
been in effect had an adjustment been made on the basis that the only Additional
Shares of Common Stock so issued were the Additional Shares of Common Stock, if
any, actually issued or sold for the consideration received by the Company for
the granting of all such Options, whether or not exercised, plus the
consideration received for issuing or selling the Convertible Securities
actually converted plus the consideration, if any, actually received by the
Company (other than by cancellation of liabilities or obligations evidenced by
such Convertible Securities) on the conversion of such Convertible Securities.
Upon the happening of any of the following events, namely, if the purchase price
provided for in any Option, the additional consideration, if any, payable upon
the conversion or exchange of any Convertible Securities, or the rate at which
Convertible Securities are convertible into or exchangeable for Common Stock
shall change at any time (including, but not limited to, changes under or by
reason of provisions designed to protect against dilution), the Warrant Price in
effect at the time of such event shall forthwith be readjusted to the Warrant
Price which would have been in effect at such time had such Options or
Convertible Securities still outstanding provided for such changed purchase
price, additional consideration or conversion rate, as the case may be, at the
time initially granted, issued or sold, but only if as a result of such
adjustment the Warrant Price then in effect hereunder is thereby reduced; and on
the termination of any such Option or any such right to convert or exchange such
Convertible Securities, the Warrant Price then in effect hereunder shall
forthwith be increased to the Warrant Price which would have been in effect at
the time of such termination had such Option or Convertible Securities, to the
extent outstanding immediately prior to such termination, never been issued.

            (e) Adjustment of Number of Shares. Upon each adjustment in the
Warrant Price, the number of Shares purchasable hereunder shall be adjusted, to
the nearest whole share, to the product obtained by multiplying the number of
Shares purchasable immediately prior to such adjustment in the Warrant Price by
a fraction, the numerator of which shall be the Warrant Price immediately prior
to such adjustment and the denominator of which shall be the Warrant Price

                                        6
<PAGE>
immediately thereafter. In no event shall any further adjustment to the Warrant
Price or number of shares issuable upon exercise of this Warrant be made
pursuant to this Section 4(e) in connection with an event resulting in an
adjustment in the Warrant Price and/or the number of Shares issuable upon
exercise of this Warrant pursuant to Sections 4(a), (b),(c) or (d) of this
Warrant.

         5. Notice of Adjustments. Whenever the Warrant Price or the number of
Shares purchasable hereunder shall be adjusted pursuant to Section 4 hereof, the
Company shall make a certificate signed by its chief financial officer setting
forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated, and the
Warrant Price and the number of Shares purchasable hereunder after giving effect
to such adjustment, and shall cause copies of such certificate to be mailed
(without regard to Section 13 hereof, by first class mail, postage prepaid) to
the holder of this Warrant at such holder's last known address.

         6. Fractional Shares. No fractional shares of Common Stock will be
issued in connection with any exercise hereunder, but in lieu of such fractional
shares the Company shall make a cash payment therefor based on the fair market
value of the Common Stock on the date of exercise as reasonably determined in
good faith by the Company's Board of Directors.

         7. Compliance with Securities Act; Disposition of Warrant or Shares of
Common Stock.

            (a) Compliance with Securities Act. The holder of this Warrant, by
acceptance hereof, agrees that this Warrant, and the Shares to be issued upon
exercise hereof are being acquired for investment and that such holder will not
offer, sell or otherwise dispose of this Warrant, or any Shares except under
circumstances which will not result in a violation of the Securities Act of
1933, as amended (the "Act"), or any applicable state securities laws. Upon
exercise of this Warrant, unless the Shares being acquired are registered under
the Act and any applicable state securities laws or an exemption from such
registration is available, the holder hereof shall confirm in writing that the
Shares so purchased are being acquired for investment and not with a view toward
distribution or resale in violation of the Act and shall confirm such other
matters related thereto as may be reasonably requested by the Company. This
Warrant and all Shares issued upon exercise of this Warrant (unless registered
under the Act and any applicable state securities laws) shall be stamped or
imprinted with a legend in substantially the following form:

         These securities have not been registered under the Securities Act of
         1933, as amended, or any state securities laws. They may not be sold,
         offered for sale, pledged or hypothecated in the absence of a
         registration statement in effect with respect to the securities under
         such Act and any applicable state securities laws or pursuant to an
         exemption under such laws, together with, in certain cases, an opinion
         of counsel reasonably satisfactory to the Company that such
         registration is not required.

Said legend shall be removed by the Company, upon the request of a holder, at
such time as the restrictions on the transfer of the applicable security shall
have terminated. In addition, in connection with the issuance of this Warrant,
the holder specifically represents to the Company by acceptance of this Warrant
as follows:

                                        7
<PAGE>
               (1) The holder is aware of the Company's business affairs and
financial condition, and has acquired information about the Company sufficient
to reach an informed and knowledgeable decision to acquire this Warrant. The
holder is acquiring this Warrant, and will acquire the Shares issuable upon
exercise of this Warrant, for its own account for investment purposes only and
not with a view to, or for the resale in connection with, any "distribution"
thereof in violation of the Act; provided, however, that, subject to compliance
with the terms of the Purchase Agreement, the Stockholders Agreement and
applicable law, the disposition of such holder's property shall at all times be
within its control.

               (2) The holder understands that neither this Warrant nor the
Shares issuable upon exercise of this Warrant have been registered under the Act
in reliance upon a specific exemption therefrom, which exemption depends upon,
among other things, the bona fide nature of the holder's investment intent as
expressed herein.

               (3) The holder further understands that this Warrant and the
Shares issuable upon exercise of this Warrant must be held indefinitely unless
subsequently registered under the Act and qualified under any applicable state
securities laws, or unless exemptions from registration and qualification are
otherwise available. The holder is aware of the provisions of Rule 144,
promulgated under the Act and that the Company has no obligation to register
this Warrant under the Act or to qualify this Warrant under any applicable state
securities laws.

               (4) The holder is an "accredited investor" as such term is
defined in Rule 501 of Regulation D promulgated under the Act.

            (b)Disposition of Warrant or Shares. With respect to any offer, sale
or other disposition of this Warrant or any Shares acquired pursuant to the
exercise of this Warrant prior to registration of such Warrant or Shares, the
holder hereof agrees to give written notice to the Company prior thereto,
describing briefly the manner thereof, together with a written opinion of such
holder's counsel, or other evidence reasonably satisfactory to the Company, to
the effect that such offer, sale or other disposition may be effected without
registration or qualification (under the Act as then in effect or any federal or
state securities law then in effect) of this Warrant or the Shares and
indicating whether or not under the Act certificates for this Warrant or the
Shares to be sold or otherwise disposed of require any restrictive legend as to
applicable restrictions on transferability in order to ensure compliance with
such law. Upon receiving such written notice and reasonably satisfactory opinion
or other evidence, the Company, as promptly as practicable but no later than
fifteen (15) days after receipt of the written notice, shall notify such holder
that such holder may sell or otherwise dispose of this Warrant or such Shares,
all in accordance with the terms of the notice delivered to the Company. If a
determination has been made pursuant to this Section 7(b) that the opinion of
counsel for the holder or other evidence is not reasonably satisfactory to the
Company, the Company shall so notify the holder promptly with details thereof
after such determination has been made. Notwithstanding the foregoing, this
Warrant or such Shares may, as to such federal laws, be offered, sold or
otherwise disposed of in accordance with Rule 144 under the Act, provided that
the Company shall have been furnished with such information as the Company may
reasonably request to provide a reasonable assurance that the provisions of Rule
144 have been satisfied. Each certificate representing this Warrant or the
Shares thus transferred (except a transfer pursuant to Rule 144 or 144A) shall
bear a legend as to the applicable restrictions on transferability in order to
ensure

                                        8
<PAGE>
compliance with such laws, unless in the aforesaid opinion of counsel for the
holder, such legend is not required in order to ensure compliance with such
laws. The Company may issue stop transfer instructions to its transfer agent in
connection with such restrictions.

            (c) Applicability of Restrictions. Neither any restrictions of any
legend described in this Warrant nor the requirements of Section 7(b) above
shall apply to any transfer of, or grant of a security interest in, this Warrant
(or the Common Stock obtainable upon exercise thereof) or any part hereof (i) to
a partner of the holder if the holder is a partnership or to a member of the
holder if the holder is a limited liability company, (ii) to a partnership of
which the holder is a partner or a limited liability company of which the holder
is a member, or (iii) to any affiliate of the holder if the holder is a
corporation; provided, however, in any such transfer, if applicable, the
transferee shall on the Company's request agree in writing to be bound by the
terms of this Warrant as if an original holder hereof.

         8. Rights as Shareholders; Information. No holder of this Warrant, as
such, shall be entitled to vote or receive dividends or be deemed the holder of
Common Stock or any other securities which may at any time be issuable on the
exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the holder of this Warrant, as such, any of the rights
of a shareholder of the Company or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof,
or to receive notice of meetings, or to receive dividends or subscription rights
or otherwise until this Warrant shall have been exercised and the Shares
purchasable upon the exercise hereof shall have become deliverable, as provided
herein. Notwithstanding the foregoing, the Company will transmit to the holder
of this Warrant such information, documents and reports as are generally
distributed to the holders of any class or series of the securities of the
Company for which this warrant is then exercisable concurrently with the
distribution thereof to the shareholders.

         9. Registration Rights. The Company has granted registration rights to
the holder of this Warrant for the resale of the Common Stock of the Company
obtained upon exercise hereof, pursuant to the Stockholders Agreement.

                                        9
<PAGE>
         10. Additional Rights.

10.1  Notice of Corporate Action. In the event the Company proposes to: (i) pay,
distribute, or take a record of the holders of its Common Stock for the purpose
of determining the holders thereof who are entitled to receive, any dividend or
other distribution, or any right to subscribe for, purchase or otherwise acquire
any shares of capital stock or any other securities or property, or (ii)
consummate any capital reorganization, reclassification, recapitalization,
consolidation, merger, transfer of all or substantially all of the Company's
assets, dissolution, liquidation or winding-up, or any similar transaction,
then, at least 10 days prior to the earlier of any applicable record date or
such event, as the case may be, the Company shall mail to the holder of this
Warrant a notice specifying: (a) the date or expected date on which any such
payment or distribution is to be made or record is to be taken and the amount
and character of any such dividend, distribution or right; (b) the date or
expected date on which any such reorganization, reclassification,
recapitalization, consolidation, merger, transfer, dissolution, liquidation,
winding-up or similar transaction is to take effect and any record date
therefor; (c) the time as of which any holders of record of shares of Common
Stock and/or any other class of securities shall be entitled to exchange their
shares of Common Stock and/or other securities for the securities or other
property deliverable upon such reorganization, reclassification,
recapitalization, consolidation, merger, transfer, dissolution, liquidation,
winding-up or similar transaction and a description in reasonable detail of such
transaction; and (d) in each case, the expected effect on the Warrant Price of
each such transaction or event. The Company shall update any such notice to
reflect any change in the foregoing information.

10.2  Right to Convert Warrant into Stock:  Net Issuance.

            (a)Right to Convert. In addition to and without limiting the rights
of the holder under the terms of this Warrant, the holder shall have the right
to convert this Warrant or any portion thereof (the "Conversion Right") into
shares of Common Stock as provided in this Section 10.2 at any time or from time
to time during the term of this Warrant. Upon exercise of the Conversion Right
with respect to a particular number of Shares subject to this Warrant (the
"Converted Warrant Shares"), the Company shall deliver to the holder (without
payment by the holder of any exercise price or any cash or other consideration)
that number of shares of fully paid and nonassessable Common Stock as is
determined according to the following formula:

                              X =   B - A
                                  ---------
                                      Y

Where:      X    =   the number of shares of Common Stock to be issued
                     to the holder upon such exercise

            Y    =   the fair market value of one share of Common Stock

            A    =   the aggregate Warrant Price of the specified
                     number of Converted Warrant Shares immediately
                     prior to the exercise of the Conversion Right
                     (i.e., the number of Converted Warrant Shares
                     multiplied by the Warrant Price)

                                       10
<PAGE>
            B    =   the aggregate fair market value of the
                     specified number of Converted Warrant Shares
                     (i.e., the number of Converted Warrant Shares
                     multiplied by the fair market value of one
                     Converted Warrant Share)

No fractional shares shall be issuable upon exercise of the Conversion Right,
and, if the number of shares to be issued determined in accordance with the
foregoing formula is other than a whole number, the Company shall pay to the
holder an amount in cash equal to the fair market value of the resulting
fractional share on the Conversion Date (as hereinafter defined). For purposes
of Section 9 of this Warrant, shares issued pursuant to the Conversion Right
shall be treated as if they were issued upon the exercise of this Warrant.

            (b) Method of Exercise. The Conversion Right may be exercised by the
holder by the surrender of this Warrant at the principal office of the Company
together with a written statement (which may be in the form of Exhibit A-1 or
Exhibit A-2 hereto) specifying that the holder thereby intends to exercise the
Conversion Right and indicating the number of shares subject to this Warrant
which are being surrendered (referred to in Section 10.2(a) hereof as the
Converted Warrant Shares) in exercise of the Conversion Right. Such conversion
shall be effective upon receipt by the Company of this Warrant together with the
aforesaid written statement, or on such later date as is specified therein (the
"Conversion Date"), and, at the election of the holder hereof, may be made
contingent upon the closing of the sale of the Company's Common Stock to the
public in a public offering pursuant to a Registration Statement under the Act
(a "Public Offering"). Certificates for the Shares issuable upon exercise of the
Conversion Right and, if applicable, a new Warrant evidencing the balance of the
Shares remaining subject to this Warrant, shall be issued as of the Conversion
Date and shall be delivered to the holder within thirty (30) days following the
Conversion Date.

            (c) Determination of Fair Market Value. For purposes of this Section
10.2, "fair market value" of a share of Common Stock as of a particular date
(the "Determination Date") shall mean:

               (i) If the Conversion Right is exercised in connection with and
contingent upon a Public Offering, and if the Company's Registration Statement
relating to such Public Offering ("Registration Statement") has been declared
effective by the Securities and Exchange Commission, then the initial "Price to
Public" specified in the final prospectus with respect to such offering.

               (ii) If the Conversion Right is not exercised in connection with
and contingent upon a Public Offering, then as follows:

         (A) If traded on a securities exchange or the Nasdaq National Market,
         the fair market value of the Common Stock shall be deemed to be the
         average of the closing prices of the Common Stock on such exchange or
         market over the five trading days immediately prior to the
         Determination Date;

         (B) If traded on the Nasdaq Stock Market (other than the Nasdaq
         National Market) or other over-the-counter system, the fair market
         value of the Common Stock shall be deemed to be the average of the

                                       11
<PAGE>
         closing bid prices of the Common Stock over the five trading days
         immediately prior to the Determination Date; and

         (C) If there is no public market for the Common Stock, then fair market
         value shall be determined by (i) mutual agreement of the holders of a
         majority-in-interest of the warrants issued pursuant to the Purchase
         Agreement who are then seeking to exercise their Conversion Rights (the
         "Converting Holders") and the Company or (ii) if no such mutual
         agreement can be reached within 15 days, then the higher of (a) the
         book value of a share of the Common Stock as determined by a firm of
         independent public accountants selected (within 10 days after the
         failure of the Company and the Converting Holders to reach mutual
         agreement) by the Board of Directors of the Company with the consent of
         the holders of the majority-in-interest of the warrants issued pursuant
         to the Purchase Agreement that are beneficially owned by Converting
         Holders, which consent shall not be unreasonably withheld or delayed,
         as at the last day of any month ending within 60 days preceding the
         date as of which the determination is to be made (such determination of
         the independent public accountant to be completed within 30 days after
         such independent public accountant is chosen by the Company and the
         Converting Holders) or (b) the fair value thereof determined in good
         faith by an independent appraiser (chosen within 10 days after the
         failure of the Company and the Converting Holders to reach mutual
         agreement by the Board of Directors of the Company with the consent of
         the Converting Holder exercising the Conversion Right with respect to
         the greatest number of shares, which consent shall not be unreasonably
         withheld or delayed) as of a date which is within 15 days of the date
         as of which the determination is to be made (such determination of the
         independent appraiser to be completed within 30 days after such
         independent appraiser is chosen by the Company and the Converting
         Holders). The fees and expenses of any such independent public
         accountant or independent appraiser shall be borne one half by the
         Converting Holders (among the Converting Holders, pro rata according to
         the number of shares for which Conversion Rights are being exercised)
         and one half by the Company.

If closing prices or closing bid prices are no longer reported by a securities
exchange or other trading system, the closing price or closing bid price shall
be that which is reported by such securities exchange or other trading system at
4:00 p.m. New York City time on the applicable trading day.

10.3  Exercise Prior to Expiration. To the extent this Warrant is not previously
exercised as to all of the Shares subject hereto, and if the fair market value
of one share of the Common Stock is greater than the Warrant Price then in
effect, this Warrant shall be deemed automatically exercised pursuant to Section
10.2 above (even if not surrendered) immediately before its expiration. For
purposes of such automatic exercise, the fair market value of one share of
Common Stock upon such expiration shall be determined pursuant to Section
10.2(c). To the extent this Warrant or any portion thereof is deemed
automatically exercised pursuant to this Section 10.3, the Company agrees to
promptly notify the holder hereof of the number of Shares, if any, the holder
hereof is to receive by reason of such automatic exercise.

11.  Representations and Warranties. The Company represents and warrants to the
holder of this Warrant as follows:

                                       12
<PAGE>

            (a) This Warrant has been duly authorized and executed by the
Company and is a valid and binding obligation of the Company enforceable in
accordance with its terms, subject to laws relating to bankruptcy, insolvency,
the relief of debtors or creditors' rights generally and the rules of law or
principles at equity governing specific performance, injunctive relief and other
equitable remedies;

            (b) The Shares have been duly authorized and reserved for issuance
by the Company as of the Date of Grant and, when issued in accordance with the
terms hereof, will be validly issued, fully paid and non-assessable;

            (c) The execution and delivery of this Warrant as of the Date of
Grant, and the issuance of the Shares upon exercise of this Warrant in
accordance with the terms hereof (i) are not and will not be, inconsistent with
the Company's certificate of incorporation or by-laws, (ii) assuming the
holder's representations to the Company set forth in Section 7(a) are true and
complete, do not and will not contravene any law, governmental rule or
regulation, judgment or order applicable to the Company, (iii) do not and will
not conflict with or contravene any provision of, or constitute a default under,
any indenture, mortgage, contract or other instrument of which the Company is a
party or by which it is bound, and (iv) assuming the holder's representations to
the Company set forth in Section 7(a) are true and complete, do not and will not
require the consent or approval of, the giving of notice to, the registration or
filing with or the taking of any action in respect of or by, any Federal, state
or local government authority or agency or other person, except for the filing
of notices pursuant to federal and state securities laws, which filings will be
effected by the time required thereby; and

            (d) As of the Date of Grant, there are no actions, suits, audits,
investigations or proceedings pending or, to the knowledge of the Company,
threatened against the Company in any court or before any governmental
commission, board or authority which, if adversely determined, will have a
material adverse effect on the ability of the Company to perform its obligations
under this Warrant.

         12. Modification and Waiver. This Warrant and any provision hereof may
be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

         13. Notices. Any notice, request, communication or other document
required or permitted to be given or delivered to the holder hereof or the
Company shall be delivered, or shall be sent by certified or registered mail,
postage prepaid, to each such holder at its address as shown on the books of the
Company or to the Company at the address indicated therefor on the signature
page of this Warrant with a copy to the General Counsel at the same address and
with another copy to Testa, Hurwitz & Thibeault, LLP, 125 High Street, Boston,
MA 02110, Attention: Mark H. Burnett, or at such other address as such party may
designate by ten (10) days' advance written notice to the other parties.

         14. Binding Effect on Successors. This Warrant shall be binding upon
any corporation succeeding the Company by merger or consolidation and all of the
obligations of the Company relating to the Shares issuable upon the exercise or
conversion of this Warrant shall survive the

                                       13
<PAGE>
exercise, conversion and termination of this Warrant and all of the covenants
and agreements of the Company shall inure to the benefit of the successors and
assigns of the holder hereof.

         15. Lost Warrants or Stock Certificates. The Company covenants to the
holder hereof that, upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant or any
stock certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity reasonably satisfactory to the Company, or in the case
of any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, the Company will make and deliver a new Warrant or stock
certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated
Warrant or stock certificate.

         16. Descriptive Headings. The descriptive headings of the several
paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. The language in this Warrant shall be
construed as to its fair meaning without regard to which party drafted this
Warrant.

         17. Governing Law. This Warrant shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of New York.

         18. Survival of Representations, Warranties and Agreements. All
representations and warranties of the Company and the holder hereof contained
herein shall survive the Date of Grant, the exercise or conversion of this
Warrant (or any part hereof) or the termination or expiration of rights
hereunder. All agreements of the Company and the holder hereof contained herein
shall survive indefinitely until, by their respective terms, they are no longer
operative.

         19. Remedies. In case any one or more of the covenants and agreements
contained in this Warrant shall have been breached, the holders hereof (in the
case of a breach by the Company), or the Company (in the case of a breach by a
holder), may proceed to protect and enforce their or its rights either by suit
in equity and/or by action at law, including, but not limited to, an action for
damages as a result of any such breach and/or an action for specific performance
of any such covenant or agreement contained in this Warrant.

         20. No Impairment of Rights. The Company will not, by amendment of its
certificate of incorporation or through any other means, 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 action as may be necessary or appropriate in order to protect
the rights of the holder of this Warrant against impairment.

         21. Severability. The invalidity or unenforceability of any provision
of this Warrant in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction, or affect any other
provision of this Warrant, which shall remain in full force and effect.

         22. Recovery of Litigation Costs. If any legal action or other
proceeding is brought for the enforcement of this Warrant, or because of an
alleged dispute, breach, default, or misrepresentation in connection with any of
the provisions of this Warrant, the successful or prevailing party or parties
shall be entitled to recover reasonable attorneys' fees and other costs incurred
in that action or proceeding, in addition to any other relief to which it or
they may be entitled.

                                       14
<PAGE>
         23. Entire Agreement; Modification. This Warrant constitutes the entire
agreement between the parties pertaining to the subject matter contained in it
and supersedes all prior and contemporaneous agreements, representations, and
undertakings of the parties, whether oral or written, with respect to such
subject matter.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
                  --------------------------------------------

                                       15
<PAGE>

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed in its
corporate name by its duly authorized officer and to be dated as of the Date of
Grant set forth on the first page to this Warrant.

                                       DSL.NET, INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:
                                       Address:  545 Long Wharf Drive, 5th Floor
                                                 New Haven, CT  06511

                           [SIGNATURE PAGE TO WARRANT]
<PAGE>
                                   EXHIBIT A-1
                               NOTICE OF EXERCISE

TO:  DSL.NET, INC. (THE "COMPANY")

1.   The undersigned hereby:

|_|  elects to purchase shares of Common Stock of the Company pursuant to the
     terms of the attached Warrant, and tenders herewith payment of the purchase
     price of such shares in full, or

|_| *elects to exercise its net issuance rights pursuant to Section 10.2 of the
     attached Warrant with respect to shares of Common Stock.

2.  Please issue a certificate or certificates representing said shares in the
name of the undersigned or in such other name or names as are specified below:

                    _________________________________________
                                     (Name)

                    _________________________________________

                    _________________________________________
                                    (Address)

3.  The undersigned represents that the aforesaid shares are being acquired for
the account of the undersigned for investment and not with a view to, or for
resale in connection with, the distribution thereof and that the undersigned has
no present intention of distributing or reselling such shares, all except as in
compliance with applicable securities laws.

                    _________________________________________
                                   (Signature)

___________________
(Date)

                                       A-2
<PAGE>
                                   EXHIBIT A-2
                               NOTICE OF EXERCISE

TO:  DSL.NET, INC. (THE "COMPANY")

1.  Contingent upon and effective immediately prior to the closing (the
"Closing") of the Company's public offering contemplated by the Registration
Statement on Form S, (File No. ___________) which was filed with the Securities
and Exchange Commission on ____________, 20__, the undersigned hereby:

|_|  elects to purchase shares of Common Stock of the Company (or such lesser
     number of shares as may be sold on behalf of the undersigned at the
     Closing) pursuant to the terms of the attached Warrant, or

|_|  elects to exercise its net issuance rights pursuant to Section 10.2 of the
     attached Warrant with respect to Shares of Common Stock.

2.  Please deliver to the custodian for the selling shareholders a stock
certificate representing such shares.

3.  The undersigned has instructed the custodian for the selling shareholders to
deliver to the Company $ or, if less, the net proceeds due the undersigned from
the sale of shares in the aforesaid public offering. If such net proceeds are
less than the purchase price for such shares, the undersigned agrees to deliver
the difference to the Company prior to the Closing.

                    _________________________________________
                                     (Name)

                    _________________________________________

                    _________________________________________
                                    (Address)

_______________
(Date)

                                       A-3

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