Document:

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                                                                   EXHIBIT 10.12

                              EMPLOYMENT AGREEMENT

                  AGREEMENT by and between LEXENT INC., a Delaware corporation
(the "Company"), and ALF T. HANSEN (the "Executive"), dated as of the 9th day of
January, 2000.

         1.  Employment Period.

         (a) The Company hereby agrees to employ the Executive, and the
Executive hereby agrees to remain in the employ of the Company, pursuant to the
terms and conditions set forth in this Agreement, for the period commencing
February 1, 2000 (the "Commencement Date") and ending on the third anniversary
of the Commencement Date, unless the Executive's employment terminates earlier
pursuant to Section 4 of this Agreement (the "Employment Period").

         (b) The Contract shall be automatically extended for successive one
year periods unless either party gives one hundred and twenty (120) days advance
written notice prior to the end of the original Employment Period or any
extension thereof.

         2.  Position and Duties.

         (a) During the Employment Period, the Executive shall be employed as
the President and Chief Executive Officer ("CEO") of the Company. In addition,
the Executive shall be nominated to the Board of Directors of the Company. The
Executive shall have such powers and perform such duties as are customary for a
CEO at the Company and from the Commencement Date shall report solely to the
Chairman and the Board of Directors. Executive's job description is attached
hereto as Exhibit A together with a list of employees who will report to
Executive.

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         (b) During the Employment Period, and excluding any periods of
vacation, holiday, personal leave and sick leave to which the Executive is
entitled, the Executive shall devote the Executive's full business time,
attention and ability to the business and affairs of the Company and shall use
the Executive"s best efforts to carry out the Executive"s responsibilities
faithfully and efficiently in a professional manner. It shall not be considered
a violation of the foregoing for the Executive to (a) serve on corporate or
civic boards approved in writing by the Company (which approval shall not be
unreasonably withheld) or on charitable boards or committees (b) deliver
lectures or fulfill speaking engagements and (c) manage personal investments, so
long as the activities referred to in clauses (a) through (c) above do not
substantially interfere with the performance of the Executive's responsibilities
as CEO of the Company in accordance with this Agreement.

         (c) The Executive's primary office shall be located in New York;
provided, that the Executive's primary office may be relocated in connection
with the relocation of the Company's headquarters within Connecticut, New
Jersey, or New York, subject to reimbursement for all of Executive's reasonable
expenses in connection with any move he is required to make. In addition, the
Executive shall be reimbursed for all reasonable moving expenses, approved in
writing, in connection with any relocation from New Jersey to New York. Unless
and until Executive relocates the Company shall provide at its expense suitable
living accommodations in Manhattan and shall reimburse Executive for meals and
related expenses.

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         3.  Compensation.

         (a) Base Salary. During the first year of the Employment Period, the
Executive shall receive an annual base salary ("Annual Base Salary") of
$300,000, payable pursuant to the Company's normal payroll practices. Effective
as of the first anniversary date of Employment and each succeeding anniversary
date, the Annual Base Salary then in effect shall be reviewed by the
Compensation Committee of the Board of Directors of the Company ("Compensation
Committee") and increased (but not decreased) in its sole discretion based upon
the performance of the Executive and the Company and the base salary (and
raises) paid by comparable companies to the CEO (the "peer executives"). In any
event Executive"s base salary shall be increased as of any anniversary date by a
minimum of 5% per annum.

         (b) Annual Bonus. For each fiscal year or part thereof of the Company
during the Employment Period, if the target performance goals communicated in
writing by the Chairman to the Executive for the Company's fiscal year are met,
the Executive's annual target bonus shall be equal to 100% of the Annual Base
Salary paid during such fiscal year (the "Target Bonus") and shall be reduced
and increased in accordance with an appropriate payout curve (established
annually by the Compensation Committee after consultation with the Executive) if
such target performance goals are not met or are exceeded. After the first full
fiscal year of the Company during the Employment Period, the Executive's Target
Bonus shall be reviewed and set by the Compensation Committee in light of
performance goals determined in good faith by the Compensation Committee,
communicated in writing by the Committee to the Executive and in accordance with
the principals set forth in Section 3 (a) above for salary increases.

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         The Executive shall receive on the Commencement Date a sign on bonus of
$300,000. This bonus shall be returned to the Company on a ratable basis if the
Executive's employment is terminated by him without Good Reason, or by the
Company for Cause as those latter terms are hereinafter defined, within the
first twelve (12) months of the Employment Term.

         (c) Benefit Plans. The Executive shall be treated in the same manner
as, and shall be entitled to such benefits and other perquisites and terms and
conditions of employment no less favorable than those provided to the peer
senior executives as determined by the Compensation Committee.

         (d) Long-Term Incentives.

             (i) The Executive shall receive an initial grant of a Company stock
option to purchase 830,000 shares of Company common stock, subject to Rule 144
of the Securities and Exchange Act, as amended (the "Act") on the Commencement
Date ("Initial Option Grant"). The exercise price shall be equal to $10.00 per
share. Such Initial Option Grant shall vest as follows:

             A. 315,416 shares of such grant shall vest immediately,

             B. The remaining shares of such grant shall vest 21,441 shares
         per month for 24 months commencing on the month coterminous with the
         first anniversary of the Commencement Date.

             (ii) On the first and second anniversaries of the Commencement
Date, the Company shall make additional option grants commensurate with that of
the other peer senior executives as determined by the Compensation Committee
("Additional Option Grants"), provided, however, that each such grant shall be
for not less than 200,000 shares if the Fair

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Market Value of the Company's common stock is then less than $30 per share
(adjusted equitably for stock splits, combinations and the like), shall be
restricted by Rule 144 of the Act, and shall be at a purchase price equal to the
then Fair Market Value of the Company's common stock on the date of grant. Such
Additional Option Grants shall vest in the same time manner as provided above
for the Initial Option Grant unless the Compensation Committee shall provide a
shorter vesting period.

         Each grant of stock options shall be designated as incentive stock
options to the maximum extent permitted by the Internal Revenue Code of 1986, as
amended, and the Company's 1998 Stock Option Plan, as amended, and the remainder
shall be designated as non-qualified stock option.

         For purposes of this Agreement, "Fair Market Value" means as of any
date the value of the Common Stock determined as follows:

             A. If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation the National Market
System of the National Association of Securities Dealers, Inc. Automated
Quotation ("NASDAQ") System, the Fair Market Value of a share of Common Stock
shall be the average of the opening and closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such system or exchange
(or the exchange with the greatest volume of trading in Common Stock) on the
last market trading day prior to the day of grant of the particular Additional
Option Grants and as reported in the Wall Street Journal or such other source as
the Compensation Committee deems reliable;

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             B. If the Common Stock is quoted on the NASDAQ System (but not on
the National Market System thereof) or is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a share of Common Stock shall be the average between the high bid and low asked
prices for the Common Stock on the last market trading day prior to the day of
grant of the particular Additional Option Grants and as reported in the Wall
Street Journal or such other source as the Compensation Committee deems
reliable; or

             C. In the absence of an established market for the Common Stock,
the Fair Market Value shall be determined in good faith by the Compensation
Committee, based upon the advice of a neutral appraiser if the Executive so
requests.

         (e) Expenses. During the Employment Period, the Executive shall be
entitled to receive reimbursement for all reasonable business expenses incurred
by the Executive in carrying out the Executive's duties under this Agreement in
accordance with the policies of the Company, provided that the Executive
complies with the policies of the Company for submission of expense reports,
receipts, or similar documentation of such expenses as promulgated from time to
time by the Company.

         (f) Vacation. During the Employment Period, the Executive shall be
entitled to paid vacation equal to that of peer senior executives as set by the
Compensation Committee from time to time but in no event less than five (5)
weeks.

         4. Termination of Employment.

         (a) Death or Disability. The Executive"s employment shall terminate
automatically upon the Executive"s death during the Employment Period. The
Executive"s

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employment under this Agreement shall terminate for "Disability" if,
during the Employment Term Executive, in the reasonable and good faith judgment
of the Compensation Committee, has failed to perform all his duties under this
Agreement on account of illness or physical or mental incapacity, and such
illness or incapacity continues for a period of more than six (6) consecutive
months.

         (b) By the Company. The Company may terminate the Executive"s
employment during the Employment Period for Cause or without Cause. For purposes
of this Agreement, "Cause" shall mean the Executive's (i) conviction of or plea
of nolo contendere to a felony; (ii) willful misconduct that is materially
injurious to the Company; (iii) failure to undertake communicated directives on
material business matters despite written instruction to do so by the Board of
Directors or the Chairman of the Company; or (iv) any willful material breach of
this Agreement which has resulted in material injury to the Company.

         Notwithstanding the foregoing, the Executive shall not be deemed to
have been terminated for Cause without (a) no less than ten (10) days prior
written notice to the Executive setting forth the reasons for the Company"s
intention to terminate for Cause, (b) an opportunity for the Executive to be
heard (together with comments of counsel) before the Board of Directors of the
Company and (c) delivery to the Executive of a notice of termination from the
Board of Directors of the Company stating its opinion that the Executive was
guilty of the conduct set forth above and specifying the particulars thereof.

         (c) Good Reason. The Executive may terminate employment for Good
Reason. "Good Reason" means, without the Executive's written consent: (i) a
material adverse change in the Executive's title or the assignment of duties to
the Executive materially and

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adversely inconsistent with the Executive's position; (ii) any material failure
by the Company to comply with Section 3 or other material provisions of this
Agreement; or (iii) any requirement by the Company that the Executive's primary
office location be other than in the states of New York, New Jersey, or
Connecticut. In the event the Executive determines that Good Reason exists, the
Executive must notify the Company of such determination in writing, within sixty
(60) days following the Executive's actual knowledge of the event which the
Executive determines constitutes Good Reason, or such event shall not constitute
Good Reason under this Agreement. Following receipt of such notice, if the
Company remedies such event within twenty (20) days following notice, the
Executive may not terminate employment for Good Reason as a result of such
event.

         (d) Executive Management Stockholder Block. The Executive may terminate
employment because the Company, solely due to an Executive Management
Stockholder Block, fails to consummate an initial public offering of its common
stock within one (1) year of the Commencement Date.

         For purposes of this Agreement, an "Executive Management Stockholder
Block" means the decision by the Company"s Executive Management Stockholders (as
that term is defined in the Stockholders Agreement, dated as of July 23, 1998,
among the Company and the stockholders party thereto, as the same may be amended
or modified from time to time) to not consent to an initial public offering by
the Company of its Common Stock; provided, however, that an Executive Management
Stockholder Block shall not be deemed to have occurred if a decision or action
by the Board of Directors or the holders of the Company"s Series A

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Convertible Preferred Stock, $.001 par value, prevents the consummation of such
an initial public offering.

         (e) Date of Termination. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company or by the Executive (other
than for death or Disability), the tenth (10th) day after the mailing of the
Notice of Termination or any later date specified therein, or (ii) if the
Executive's employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the date of the
determination of Disability as set forth heretofore, as the case may be.

         5. Obligations of the Company upon Termination.

         (a) Other Than for Cause, Death or Disability, Good Reason or Executive
Management Stockholder Block. If, during the Employment Period, the Company
terminates the Executive"s employment, other than for Cause, death or
Disability, or if the Executive terminates employment for Good Reason:

             (i) the Company shall pay the Executive, in one lump cash sum the
sum of 100% of the Executive"s Annual Base Salary;

             ii) within thirty (30) days following the Date of Termination, the
Company shall pay the Executive his Annual Base Salary through the Date of
Termination, or any earned bonus to the extent not yet paid;

             iii) at the time annual bonuses for the fiscal year in which the
Date of Termination occurs are paid, the Company shall pay the Executive a pro
rata annual bonus based upon actual performance under the annual bonus plan for
such fiscal year, to the extent not otherwise paid;

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             iv) any unvested Company stock options or other stock grants held
by the Executive as of the Date of Termination will vest as if Executive had
remained employed by the Company;

             v) to the extent vested and exercisable, any Company stock option
will remain exercisable in accordance with their original term;

             vi) the Executive shall continue to receive employee benefits for a
period of six (6) months following the Date of Termination and the Executive"s
eligible dependents will continue to be eligible to participate in the Company"s
medical dental, life and other welfare insurance plans (subject to the Executive
continuing to make any required contributions to such plans) for a period of six
(6) months following the Date of Termination (or the Company shall provide
equivalent benefits for such period); provided, that such continued benefits
shall cease upon the Executive becoming eligible for comparable benefits from a
subsequent employer; and

             vii) other benefits, if applicable, shall be paid to the Executive
in accordance with applicable plans and programs of the Company.

         (b) Death or Disability. If the Executive"s employment is terminated by
reason of the Executive"s death or Disability during the Employment Period:

             (i) the Company shall pay the Executive (or the Executive"s
survivors, if applicable) the Executive"s Annual Base Salary through the Date of
Termination, to the extent not yet paid; and

             (ii) all Company stock options and stock awards will vest, and such
stock options shall remain exercisable until the original term of the stock
option.

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         (c) Cause; Other than Good Reason. If the Executive"s employment is
terminated by the Company for Cause during the Employment Period or the
Executive terminates employment during the Employment Period (other than for
Good Reason), the Company shall pay to the Executive the Executive's Annual Base
Salary through the Date of Termination and any earned bonus to the extent not
yet paid, and any vested Company stock options will remain exercisable in
accordance with the original term of the stock option. The Company shall have no
further obligations under this Agreement.

         (d) Executive Management Stockholder Block. In the event that the
Executive's employment is terminated by the Executive pursuant to clause (d) of
Section 4 above during the ninety (90) day period following the date of such
Executive Management Stockholder Block, then:

             i) the Company shall pay the Executive the sum of 100% of the
Executive's Annual Base Salary in twelve equal monthly installments; and

             ii) all Company stock options and stock awards will vest and such
stock options shall remain exercisable until the original term of the stock
option.

         6. Change of Control. If there is a Change of Control of the Company
(as defined below) all unvested stock options or stock awards shall become 100%
vested. In addition, the Executive may elect within six (6) months following
such Change of Control to terminate his employment and such termination shall be
treated as a termination for Good Reason and the Executive shall receive the
benefits provided in Section 5 (a) above for such Termination. As used
hereinafter, "Change of Control" means the occurrence of any of the following:
(i) the Company consolidates with or merges with or into another person pursuant
to the transaction in

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which the outstanding securities of the Company are converted into or exchanged
for cash or other property or for securities possessing less than 50% of the
voting power of the outstanding securities of the person surviving such merger
or consolidation; (ii) the Company sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets to any person; or
(iii) any "person" or "group" (as such terms are used in Sections 13(d) and 14
(d) of the Act), other than the holders of the securities of the Company as of
the date hereof shall, by virtue of ownership of securities or by agreement or
otherwise, be entitled to elect a majority of the directors of the Company.

         7. Right to Purchase Shares. During the first 90 days of the Employment
Period the Executive shall have the right to purchase common shares of the
Company up to a maximum of 215,000 shares at the fair market value of the common
stock, which the Compensation Committee has determined is $10.00 as of the date
of this Agreement. The Executive shall pay for any such purchase in cash. The
Executive agrees to make such representations and agree to such restrictions on
transfer of such shares as the Company may reasonably request to ensure
compliance with all applicable securities laws or agreements with equity
investors.

         8. Right to Require Purchase. If for any reason the Company is not a
public company, after the Executive"s employment ends the Executive, in his sole
discretion, may require the Company to purchase the stock acquired by the
Executive in accordance with Sections 3, 4 or Section 7 hereof at its fair
market value as determined by an independent appraiser selected by the parties;
provided, however, that if at the time the Company is required to purchase stock
pursuant to this Section 8, the Board determines in good faith that purchasing
the shares for cash would be

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a material financial hardship for the Company, the Company may
pay for the stock over three years with interest accruing on any unpaid amounts
at the prime rate of a national bank selected by the Compensation Committee.

         9. Non-Competition. The Executive hereby agrees that for a period of
three (3) years after the date hereof, such Executive will not, singly, jointly,
or as an employee, agent or partner of any partnership or as an officer, agent,
employee, director, stockholder (except of not more than one percent (1%) of the
outstanding stock of any company listed on a national securities exchange or
actively traded in the over-the-counter market) or investor in any other
corporation or entity, or as a consultant, advisor, or independent contractor to
any such partnership, corporation or entity, or in any other capacity, directly,
indirectly or beneficially, own, manage, operate, join, control, or participate
in the ownership, management, operation, or control of, or work for (as an
employee, agent, consultant, advisor or independent contractor), or permit the
use of his name by, or provide financial or other assistance to, any person,
partnership, corporation, or entity which is in competition with the business as
conducted by the Company on the date hereof.

         10. Confidential Information. The Executive agrees that he will not at
any time during or after the Executive's employment with the Company for any
reason, directly or indirectly, disclose to any person any confidential
information of the Company, other than information that is already known to the
public, except as may be required in the ordinary course of business of the
Company or as may be required by law. Promptly upon the termination of this
Agreement for any reason, the Executive agrees to return to the Company any and
all documents, memoranda, drawings, notes and other papers and items (including
all copies thereof, whether

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electronic or otherwise) embodying any confidential information of the Company
which are in the possession or control of the Executive.

         11. Intangible Assets and Non-Solicitation.

         (a) The Executive shall not at any time have or claim any right, title
or interest in any trade name, trademark, copyright, or other similar rights
belonging to or used by the Company and shall not have or claim any rights,
title or interest in any material or matter of any sort prepared for or used in
connection with the business of the Company or promotion of the Company, whether
produced, prepared or published in whole or in part by the Executive.

         (b) Hire or attempt to hire for employment any person who is employed
by the Company or attempt to influence any such person to terminate employment
with the Company, except to the extent the Executive is acting on behalf of the
Company in good faith; provided, however, that nothing herein shall prohibit the
Executive from general advertising for personnel not specifically targeting any
employee or other personnel of the Company.

         12. Release. Effective upon the Date of Termination pursuant to the
provisions of Sections 4(a), (b), (c) or (d) of this Agreement in consideration
of the payments to be made to the Executive pursuant to Sections 5(a), (b), (c)
or (d) of this Agreement and as a condition to the payment thereof, the
Executive acknowledges that all such payments, if made in accordance with the
terms of this Agreement shall constitute complete satisfaction of all
obligations owed by the Company to the Executive and shall further constitute
the Executive"s sole remedy against the Company.

         13. Arbitration. Any dispute, controversy, or question arising under,
out of, or relating to this Agreement (or the breach thereof) or, Executive"s
employment with the Company

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or termination thereof, shall be referred for arbitration in the State of New
York to a neutral arbitrator selected by the Executive and the Company and this
shall be the exclusive and sole means for resolving such dispute. The
arbitration proceeding shall be governed by the Employment Rules of the American
Arbitration Association then in effect or such rules last in effect (in the
event such Association is no longer in existence) and shall be governed by the
rule of law. Such right to submit a dispute arising hereunder to arbitration and
the decision of the neutral arbitrator shall be final, conclusive and binding on
all parties and interested persons and no action at law or in equity shall be
instituted or, if instituted, further prosecuted by either party other than to
compel arbitration or enforce the award of the neutral arbitrator. The
arbitrator shall take submissions and hear testimony, if necessary, and shall
render a written decision as promptly as possible. The arbitrator may require
any form of discovery (e.g., depositions) in making his decision. In connection
with any arbitration, the Company will reimburse the Executive for all
reasonable attorneys' fees and disbursements as incurred in connection therewith
following the receipt of invoices for such fees and disbursements. If the
Company prevails on all substantial claims in the dispute submitted for
arbitration then the Executive will reimburse the Company for such legal fees.
The arbitrator may determine and may award costs and attorneys' fees as part of
his decision.

         14. Assignment; Successors.

         (a) This Agreement is personal to the Executive and, without the prior
written consent of the Company, shall not be assignable by the Executive. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
heirs, executors and administrators.

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         (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns, provided that the Company may not
assign this Agreement except in connection with the assignment or disposition of
all or substantially all of the assets or stock of the Company, or by law as a
result of a merger or consolidation. In the event of such assignment a failure
by the successor to specifically assume in writing, delivered to the Executive,
the obligations and liabilities of the Company hereunder shall be deemed a
material breach of this Agreement.

         (c) The Company shall require any successor or assignee to assume and
agree to perform this Agreement in the same manner and to the same extent that
the Company would have been required to perform it if no such assignment had
taken place.

         15. Indemnification. In addition to any rights to indemnification to
which Executive is entitled to under the Corporation's Articles of Incorporation
and Bylaws, Company shall indemnify Executive at all times during and after the
term of this Agreement to the maximum extent permitted under Delaware Business
Corporation Act or any successor provision thereof and any other applicable
state law, and shall pay Executive's expenses in defending any civil action
suit, or proceeding in advance of the final disposition of such action, suit or
proceeding, to the maximum extent permitted under such applicable state laws for
Executive's action or inaction on behalf of the Company under the terms of this
Agreement. In connection herewith, if the Company has or obtains directors or
officers insurance, so-called, Executive shall be covered by such policy to the
same extent as the peer senior executives.

         16. Miscellaneous.

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         (a) This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York, without reference to its conflict of
law rules.

         (b) The captions of this Agreement are not part of the provisions
hereof and shall have no force or effect.

         (c) This Agreement may not be amended or modified except by a written
agreement executed by the parties hereto or their respective successors and
legal representatives.

         (d) All notices and other communications under this Agreement shall be
in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

     If to the Executive:

     Alf T. Hansen
     1 Greenbrier Court
     Skillman, New Jersey 08558

     If to the Company:
     Lexent Inc.
     Three New York Plaza, 11th Floor
     New York, New York 10003
     Attention: Chairman

or to such other address as either party furnishes to the other in writing in
accordance with this paragraph. Notices and communications shall be effective
when actually received by the addressee or three (3) days after the initiation
of delivery.

         (e) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement. If any provision of this Agreement shall be held invalid or
unenforceable in part, the remaining portion of such

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provision, together with all other provisions of this Agreement, shall remain
valid and enforceable and continue in full force and effect to the fullest
extent consistent with law.

         (f) Notwithstanding any other provision of this Agreement, the Company
may withhold from amounts payable under this Agreement all federal, state, local
and foreign taxes that are required to be withheld by applicable laws or
regulations.

         (g) The Executive's or the Company's failure to insist upon strict
compliance with any provision of, or to assert any right under, this Agreement
shall not be deemed to be a waiver of such provision or right or of any other
provision of or right under this Agreement.

         (h) Except as provided herein, the Executive and the Company
acknowledge that this Agreement constitutes the entire agreement between the
parties and supersedes any prior agreement between the Executive and the Company
concerning the subject matter hereof.

         (i) This Agreement may be executed in several counterparts, each of
which shall be deemed an original, and said counterparts shall constitute but
one and the same instrument.

         (j) The parties hereto shall execute and deliver all documents, provide
all information and take or forbear from all such action as may be necessary or
appropriate to achieve the purposes of the Agreement.

         (k) If any provision of this Agreement, or the application of such
provision to any person or circumstance, shall be held invalid, the remainder of
this Agreement, or the application of such provision to persons or circumstances
other than those as to which it is held invalid, shall not be affected thereby.

         (l) If any excise tax is imposed upon the Executive under the Internal
Revenue

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Code by reason of payments or vesting made on a Change of Control the
Company shall gross up the payments to make the Executive whole for such excise
tax.

         (m) The Company shall reimburse Executive for all reasonable fees and
expenses of Executive's attorneys and accountants incurred in connection with
the negotiation and preparation of this Agreement.

         (n) The Executive affirms and represents to the best of his knowledge
and belief that as of the commencement of his employment by the Company on the
Commencement Date, he will be under no obligation to any former employer or
other party which imposes any restriction upon, the Executive's acceptance of
the employment hereunder with the Company, the employment of the Executive by
the Company, or the Executive's undertakings under this Agreement.

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         IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization of its Board of Directors, the Company has
caused this Agreement to be executed in its name on its behalf, all as of the
day and year first above written.

                                          LEXENT INC.

                                          By /s/ Hugh O'Kane, Jr.
                                             -------------------------------
                                                 Hugh O'Kane, Jr.
                                                 Chairman

                                          By /s/ Alf T. Hansen
                                             -------------------------------
                                                 Alf T. Hansen
                                                 CEO and President

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                                                                     EXHIBIT 4.2

               FOURTH AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

         THIS FOURTH AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (the
"Agreement") is made and entered into as of the 22nd day of December, 1999, by
and among INTELLIGENT INFORMATION INCORPORATED, a Delaware corporation (the
"COMPANY"), the Purchasers listed on Exhibit A to this Agreement (each, a
"SERIES F PURCHASER" and collectively, the "SERIES F PURCHASERS"), BG MEDIA
INVESTORS L.P., a Delaware limited partnership ("BG MEDIA"), APEX INVESTMENT
FUND III, L.P., a Delaware limited partnership, and APEX STRATEGIC PARTNERS,
LLC, a Delaware limited liability company ("APEX"), KEYSTONE VENTURE IV, L.P., a
Pennsylvania limited partnership ("KEYSTONE"), and ROBERT M. UNNOLD, STEPHEN G.
MALONEY, DONALD F. CHRISTINO and W. PETER DANIELS (the "FOUNDERS" and
collectively with the Series F Purchasers, BG Media, Apex and Keystone, the
"STOCKHOLDERS").

                              W I T N E S S E T H:

         The Stockholders own substantially all of the issued and outstanding
shares of the Common Stock, par value $.01 per share (the "COMMON STOCK"), all
of the issued and outstanding shares of the Series B Preferred Stock, par value
$.01 per share (the "SERIES B PREFERRED STOCK"), 421 shares of the Series C
Preferred Stock par value $.01 per share (the "KEYSTONE SERIES C PREFERRED
STOCK"), all of the issued and outstanding shares of the Series D Preferred
Stock, par value $.01 per share (the "SERIES D PREFERRED STOCK") all of the
issued and outstanding shares of the Series E Preferred Stock, par value $.01
per share (the "SERIES E PREFERRED STOCK"), and all of the issued and
outstanding shares of the Series F Preferred Stock, par value $.01 per share
(the "SERIES F PREFERRED STOCK") of the Company, in the amounts set forth on
Exhibit A annexed hereto (such shares together with all shares of Common Stock
issued upon conversion of the Series B Preferred Stock, the Keystone Series C
Preferred Stock, the Series D Preferred Stock, the Series E Preferred Stock and
the Series F Preferred Stock being hereinafter referred to as the "SHARES").

         The Stockholders and the Company consider it to be in their individual
and mutual best interests to set forth certain agreements with respect to (i)
board representation, (ii) certain corporate actions, (iii) restrictions on the
transfer of the Shares, and (iv) certain other matters as hereinafter set forth.

         NOW THEREFORE, in consideration of the premises, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
specifically agreed to and acknowledged, the parties hereby agree as follows:

1.       Board of Directors and Related Matters.
<PAGE>   2
         1.01 Series F Purchasers' Board Designee. For so long as the Series F
Purchasers own at least fifty percent (50%) of the aggregate number of shares of
Series F Preferred Stock, the Series F Purchasers, as a group, shall be entitled
to designate one person for election to the Company's Board of Directors (the
"BOARD"). Any person designated by the Series F Purchasers for election to the
Board pursuant to this Section 1.01 shall be referred to herein as the "SERIES F
PURCHASERS' DESIGNEE."

         1.02 BG Media's Board Designee. For so long as BG Media owns at least
fifty percent (50%) of the aggregate number of shares of Series E Preferred
Stock, BG Media shall be entitled to designate one person for election to the
Board. Any person designated by BG Media for election to the Board pursuant to
this Section 1.02 shall be referred to herein as the "BG MEDIA DESIGNEE."

         1.03 Keystone's Board Designee. For so long as Keystone owns at least
fifty percent (50%) of the aggregate number of shares of Series B Preferred
Stock outstanding on the date hereof, Keystone shall be entitled to designate
one person for election to the Board (the "KEYSTONE DESIGNEE").

         1.04 Apex's Board Designee; Company Board Designee.

                  (a) For so long as Apex owns at least fifty percent (50%) of
the aggregate number of shares of Series D Preferred Stock outstanding on the
date hereof, Apex shall be entitled to designate one person for election to the
Board (the "APEX DESIGNEE");

                  (b) For so long as Apex owns at least fifty percent (50%) of
the aggregate number of shares of Series D Preferred Stock outstanding on the
date hereof, the President and Chief Executive Officer of the Company shall
designate and elect a director, who was not designated pursuant to Sections
1.01, 1.02, 1.03, 1.04(a) and 1.05 hereof, and who has relevant experience in
the Company's business and is acceptable to the President and Chief Executive
Officer of the Company, the Series F Purchasers, BG Media, Apex and Keystone
(the "COMPANY'S DESIGNEE"). Such designee shall be chosen and appointed on or
before June 30, 2000.

         1.05 Founders' Board Designees. Each Founder shall be entitled to serve
as a member of the Board for so long as such Founder owns at least 10% of the
outstanding voting stock of the Company; provided, however, that in the event
any Founder owns less than 10% of the outstanding voting stock of the Company,
but the Founders collectively own the amount of outstanding voting stock of the
Company set forth below, the Founders shall be entitled to designate the number
of members of the Board as follows:

<TABLE>
<CAPTION>
               Aggregate                                   Number of
               Ownership                                   Founders'
               Percentage                                  Designees
               ----------                                  ---------
<S>                                                        <C>
                   40%                                         4
                   30%                                         3
</TABLE>

                                     - 2 -
<PAGE>   3
<TABLE>
<S>                                                            <C>
                   20%                                         2
                   10%                                         1
</TABLE>

Any person elected to the Board pursuant to this Section 1.05 shall be referred
to herein as a "FOUNDER DESIGNEE."

         1.06 Size of the Board. Except in accordance with Section 2 hereof, the
number of members of the Board shall be set as follows:

                  (a) For so long as Apex, BG Media or the Series F Purchasers
own at least fifty percent (50%) of the aggregate number of shares of Series D
Preferred Stock, Series E Preferred Stock or Series F Preferred Stock,
respectively, outstanding on the date hereof, the Board shall not, without the
affirmative consent of Apex, BG Media or the Series F Purchasers, as the case
may be, consist of more than eight (8) members.

                  (b) Subject to Section 1.06(a), to the extent that the size of
the Board must be increased or decreased in order to accommodate the Series F
Purchasers' Designee, the BG Media Designee, the Keystone Designee, the Apex
Designee, the Company's Designee and the Founder Designees to which the Series F
Purchasers, BG Media, Keystone, Apex, the Company and the Founders,
respectively, are entitled pursuant to Sections 1.01, 1.02, 1.03, 1.04 and 1.05
hereof, the Board shall take all necessary action to increase or decrease its
size accordingly, without requiring further action on the part of the
Stockholders, and with ownership of the Common Stock, as reflected in the
Company's stock transfer ledger, being conclusive evidence of the number of
designees to which the Series F Purchasers, BG Media, Keystone, Apex, the
Company and the Founders are respectively entitled.

         1.07 Election of Designees. The Company will at all times use its best
efforts to cause the Series F Purchasers' Designee, the BG Media Designee, the
Keystone Designee, the Apex Designee, the Company Designee and the Founder
Designees to be elected to the Board and will refrain from taking any action
that would diminish the prospects of the Series F Purchasers' Designee, the BG
Media Designee, the Keystone Designee, the Apex Designee, the Company Designee
and the Founder Designees being elected to the Board pursuant to Sections 1.01,
1.02, 1.03, 1.04 and 1.05 hereof. Each Stockholder agrees, for so long as this
Agreement remains in effect, to vote or cause to be voted, if applicable, all of
the shares of Common Stock, Series B Preferred Stock, Keystone Series C
Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series F
Preferred Stock now owned or hereafter acquired by such Stockholder, or over
which such Stockholder has voting control, and to otherwise use its best
efforts, (a) to elect to the Board, at any time that directors are elected to
the Board, the Series F Purchasers' Designee, the BG Media Designee, the
Keystone Designee, the Apex Designee, the Company Designee and the Founder
Designees and (b) other than in accordance with Section 2 hereof, not to
increase or decrease or permit the Company to increase or decrease the number of
members of the Board except as is necessary to accommodate the Series F
Purchasers' Designee, the BG Media Designee, the Keystone Designee, the Apex
Designee, the Company Designee and the Founder Designees to which the Series F
Purchasers, BG Media, Keystone, Apex, the Company and the Founders,
respectively, are entitled pursuant to Sections 1.01, 1.02, 1.03, 1.04 and 1.05

                                     - 3 -
<PAGE>   4
hereof. Upon any change in ownership of shares of the Company's stock, the
Company and each Stockholder will use their respective best efforts to ensure
compliance with the provisions of this Section 1.

         1.08 Observer Rights. For so long as NBC Interactive Media, Inc. owns
at least fifty percent (50%) of the number of shares of Series F Preferred Stock
purchased by it hereunder, it shall have the right to designate one (1) person
to be an observer at each Board of Directors meeting. For so long as Sony
Corporation of America and Sony Music, a Group of Sony Music Entertainment Inc.
(collectively, "Sony") own at least fifty percent (50%) of the number of shares
of Series F Preferred Stock purchased by Sony hereunder, Sony shall also have
the right to designate one (1) person to be an observer at each Board of
Directors meeting. Each observer and GE Capital Equity Investments, Inc. shall
be entitled to receive all documents provided to the directors of the Company,
subject to any restrictions under applicable law.

2.       Restrictions on Certain Corporate Actions.

         Except with the affirmative vote of a majority of the Board (which
majority must include the affirmative vote of the Series F Purchasers' Designee,
the BG Media Designee and either the Keystone Designee or the Apex Designee (or
such other existing director designated by BG Media if either Keystone or Apex
is no longer represented on the Board (the "BG MEDIA REPLACEMENT DESIGNEE")) on
the actions specified in clauses (l) through (p) below), the Board will not:

                  (a) Amend the Certificate of Incorporation or By-laws of the
Company;

                  (b) Issue any additional shares of capital stock or securities
convertible into shares of capital stock, or options, warrants or other
commitments for the issuance of shares of capital stock or such securities
(other than pursuant to the Company's 1995 Stock Incentive Plan, as in effect on
the date hereof);

                  (c) Retire, redeem or otherwise repurchase, directly or
indirectly, any share of the capital stock or other equity securities of the
Company;

                  (d) Enter into any agreement, commitment or plan of merger,
reorganization or consolidation which would result in the issuance of any shares
of the capital stock of the Company or which would result in a disposition of
any shares of the capital stock of the Company held or owned by any Stockholder;

                  (e) Create, incur, or assume or suffer to exist, or guarantee,
endorse or otherwise become directly or contingently liable for, any
indebtedness or other obligation in excess of $75,000 with respect to any single
obligation or permit the aggregate amount of such indebtedness or obligation
outstanding at any given time to exceed $250,000;

                  (f) Sell, assign, lease or otherwise dispose of any of the
Company's material assets;

                                     - 4 -
<PAGE>   5
                  (g)  Declare or pay any dividends, in cash or property;

                  (h) Increase or enter into any agreement or arrangement to
increase the aggregate annual base compensation of any officer, director or
employee of the Company to any amount greater than $150,000;

                  (i) Commence, or cause to be commenced, any bankruptcy,
reorganization, debt arrangement or proceeding under any bankruptcy or
insolvency law, or any disposition or liquidation proceeding;

                  (j) File a registration statement, under the Securities Act of
1933, as amended, with respect to any securities of the Company, except pursuant
to the Third Amended and Restated Registration Rights Agreement of even date
herewith by and among the parties hereto;

                  (k) Enter into or materially amend any contract, agreement or
other arrangement with any officer, employee, director or holder of at least 5%
of the Company's outstanding voting stock;

                  (l) Commence any business not directly related to the present
(or presently proposed) business of the Company;

                  (m) Increase or decrease the size of the Board except as is
necessary to elect the Series F Purchasers' Designee, the BG Media Designee, the
Keystone Designee, the Apex Designee, the Company Designee and the Founder
Designees to which the Series F Purchasers, BG Media, Keystone, Apex and the
Founders, respectively, are entitled pursuant to Sections 1.01, 1.02, 1.03, 1.04
and 1.05 hereof, subject to Section 1.06(a) hereof;

                  (n) Approve the Company's annual budgets, business plan and
marketing plans;

                  (o) Approve compensation matters related to the Company's
Chairman of the Board and President and Chief Executive Officer; or

                  (p) Approve any other matter not in the ordinary course of
business.

3.       Restrictions on Transfer of Shares.

         3.01 Transfer of Stockholder Shares. Except as hereinafter provided, no
Stockholder shall sell, assign, transfer, give, pledge, encumber or otherwise
dispose of all or any part of such Stockholder's Shares to any person, trust,
association, partnership, firm, corporation or other legal entity (a
"Transfer"), except as expressly permitted pursuant to this Agreement and except
for any pledge, lien, security interest, control arrangement or other
encumbrance granted to, or arising by operation of law in favor of, any lender
(or other financing entity) or securities broker/dealer (or similar entity) to
or in respect of any Stockholder, or any transfers in connection with such
party's exercise of its rights therewith.

                                     - 5 -
<PAGE>   6
         3.02 Permitted Transferees. A Stockholder may Transfer all or any part
of his or its Shares in accordance with the redemption right contained in the
Restated Certificate of Incorporation, as amended, and the Certificate of
Designations of the Series F Preferred Stock or to a Permitted Transferee (as
hereinafter defined) without first complying with Section 4 or Section 5,
provided that prior to effecting such Transfer, the Permitted Transferee shall
execute a counterpart of this Agreement in accordance with Section 9 hereof,
thereby evidencing that the Shares to be held by such Permitted Transferee shall
remain subject to this Agreement and that such Permitted Transferee has become a
Stockholder for purposes of, and is bound as such by the terms of, this
Agreement. For purposes of this Agreement, the term "PERMITTED TRANSFEREE" of a
Stockholder shall mean (i) if such Stockholder is a corporation, any Affiliate
(as defined below) of such corporation, (ii) if such Stockholder is a limited
partnership, any current or former general or limited partner of such limited
partnership, (iii) if such Stockholder is a limited liability company, any
current or former member of such Stockholder, (iv) if such Stockholder is an
individual, such Stockholder's spouse or lineal descendants, or any trust or
other entity created and existing solely for the benefit, directly or
indirectly, of any such person or persons, or, upon the death of any such
Stockholder, such Stockholders' estate, administrator or executor, provided that
under the terms of such Stockholder's will or under the applicable laws of
intestate succession, such Stockholder's Shares are to be transferred solely to
a Permitted Transferee or Permitted Transferees in accordance with the
requirements of this Section 3.02, and (v) with regard to any of the foregoing,
the Company, if the Transfer is made pursuant to any redemption right contained
in the Restated Certificate of Incorporation, as amended, and the Certificate of
Designations of the Series F Preferred Stock. For purposes of this Agreement, an
"Affiliate" of an entity shall mean a person or entity that directly, or
indirectly through one or more intermediaries, controls or is controlled by, or
is under common control with, the entity. Notwithstanding the foregoing, a
Stockholder may, in one or a series of transactions, Transfer up to an aggregate
of 2.5% of the total number of Shares outstanding, without being subject to, or
complying with, the provisions of Sections 4 and 5, provided, however, that each
of Robert M. Unnold and Stephen G. Maloney shall not, so long as they are
employed by the Company in a management position, be permitted to Transfer more
than 20% of his individual holdings during the five (5) year period after the
date hereof except in the case of the sale by the Company of all or
substantially all of its business or assets, the sale of all or substantially
all of the capital stock by the Company's shareholders as a whole and
Board-approved changes to the Company's stock option plans or for estate
planning purposes.

4.       Stockholder's First Offer Rights.

         4.01 Except as permitted by Section 3.02 hereof, no Stockholder shall
Transfer all or any portion of the Shares owned by such Stockholder without, at
least forty-five (45) days prior to any such proposed Transfer, giving
concurrent written notice to the Company and the other Stockholders of (i) the
number and class of Shares he or it proposes to Transfer, (ii) the total number
of shares of such class then owned by the selling Stockholder, (iii) the name
and address of the proposed transferee and (iv) the terms of the proposed
Transfer (the "TRANSFER NOTICE"). The date on which the Company receives a
Transfer Notice is referred to as the "NOTICE DATE". The Stockholders agree
that, in the event they propose to sell any Shares for consideration other than
cash, the selling Stockholder shall, at his or its cost, obtain an appraisal of
the proposed

                                     - 6 -
<PAGE>   7
consideration for the purpose of valuing such offer in connection with the First
Offer Rights hereunder.

         4.02 The Transfer Notice shall constitute an offer to sell such portion
of the Shares to all remaining Stockholders at a price per share and on the same
terms as set forth in the Transfer Notice. Under such circumstances, each
remaining Stockholder shall have the option to purchase all or any portion of
his or its pro rata share (in relation to all of the other Stockholders and
assuming the conversion of all outstanding securities convertible into shares of
Common Stock) of the Shares proposed to be Transferred. A Stockholder who elects
to exercise such option must do so in writing, to the Stockholder proposing the
Transfer, within twenty (20) days of the Notice Date. Any stock with respect to
which the option is not exercised shall be subject to an option to purchase in
favor of the other remaining Stockholders, at the same price per share and on
the same terms, on a pro rata basis. Any remaining Stockholders electing to
exercise such option shall notify the Stockholder proposing the Transfer in
writing within ten (10) days after the expiration of the twenty (20)-day period
set forth above.

         4.03 If the option under this Section 4 to purchase the Shares that are
proposed to be Transferred is not exercised in its entirety by one or more of
the remaining Stockholders within thirty (30) days of the Notice Date, then such
Stockholder shall, subject to Section 5 of this Agreement, be free to dispose of
all, but not less than all, of the Shares proposed to be Transferred; provided,
however, (i) that such Transfer shall be made in strict accordance with the
terms of the proposed Transfer described in the Transfer Notice, (ii) the
proposed transferee executes a counterpart of this Agreement in accordance with
Section 9 hereof, thereby evidencing that the Shares to be held by the proposed
transferee remain subject to this Agreement and that the proposed transferee has
become a Stockholder, for purposes of, and is bound as such by the terms of,
this Agreement and (iii) that such Transfer is consummated within ninety (90)
days after the Notice Date. After the expiration of such ninety (90)-day period,
all Shares then owned by the Stockholder that proposed the Transfer shall again
be subject to the provisions of this Agreement as though the offer pursuant to
this Section 4 had not previously been made. The certificates representing any
Shares registered in the name of such transferee shall bear the legend provided
for in Section 10 hereof.

         4.04 If the offer of the selling Stockholder pursuant to this Section 4
is accepted, the closing of the purchase of the offered Shares shall be held at
the principal executive office of the Company within forty (40) days after the
Notice Date, on the date and at the hour set forth in a written notice given by
the Company to the selling Stockholder and the remaining Stockholders. The
purchasing party shall deliver to the selling Stockholder at the closing the
full purchase price payable for the Shares by means of any official bank check
or certified check, and the selling Stockholder shall deliver to the purchasing
party share certificates representing the Shares being purchased by the
purchasing party, duly endorsed in blank for transfer or with other documents as
may be necessary or appropriate, in the reasonable opinion of counsel for the
purchasing party, to effectuate the Transfer to the purchasing party.

                                     - 7 -
<PAGE>   8
5.       Tag-Along Rights.

         5.01 In the event that any Stockholder other than any Series F
Purchaser (a "SELLING STOCKHOLDER") proposes to Transfer Shares which either
alone or together with all other Shares Transferred by such Stockholder
represent in excess of 7.5% of the total Shares owned by such Selling
Stockholder, and if the remaining Stockholders have not exercised their rights
under Section 4.02 hereof, then at least fifteen (15) days prior to any such
Transfer, the Selling Stockholder shall give concurrent written notice (the
"TAG-ALONG TRANSFER NOTICE") to the Company and the remaining Stockholders of
(i) the number and class of Shares proposed to be transferred, (ii) the total
number of Shares then owned by the Selling Stockholder, (iii) the name and
address of the proposed transferee and (iv) the terms of the proposed Transfer.
The Tag-Along Transfer Notice shall be signed both by the Selling Stockholder
and by the proposed transferee and must constitute a binding commitment of both
such parties for the transfer of such Shares, subject only to the Tag-Along
Right (as hereinafter defined). The date on which the Company receives a
Tag-Along Transfer Notice is referred to as the "TAG-ALONG NOTICE DATE." Total
Shares outstanding shall include all Shares on a converted or exercised basis.

         5.02 The Tag-Along Transfer Notice shall constitute an offer by the
proposed transferee to purchase a portion of the Shares proposed to be so
Transferred from each remaining Stockholder. Under such circumstances, each
remaining Stockholder may elect to sell to the proposed transferee, at a per
share price and on the same terms as were offered to the Selling Stockholder as
set forth in the Tag-Along Transfer Notice, a percentage of the Shares proposed
to be so Transferred, such percentage equal to the percentage which the Shares
owned by such remaining stockholder represent of the total Shares outstanding,
in each case assuming the conversion of any securities convertible into shares
of Common Stock (the "Tag-Along Right"). A Stockholder who elects to exercise
his or its Tag-Along Right must do so in writing, to the Selling Stockholder,
within five (5) days of the Tag-Along Notice Date. The consummation of the
purchase of the Selling Stockholder's Shares and any remaining Stockholders'
Shares being sold pursuant to the Tag-Along Right, if any, shall be made
contemporaneously by the proposed transferee.

6.       Pre-emptive Purchase Rights.

         In the event of any offering of shares of Common Stock or other
security of the Company convertible into or exercisable for the Common Stock
other than pursuant to an underwritten public offering (excluding (i) issuances
of shares of Common Stock pursuant to conversion of the shares of Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E
Preferred Stock or Series F Preferred Stock, (ii) shares issuable pursuant to
warrants outstanding on the date hereof or options to purchase up to 2,264,000
shares of Common Stock granted or to be granted under the Company's 1995
Incentive Stock Plan or any successor plan or (iii) other securities outstanding
as of the date hereof), the Company shall send written notice thereof to each
Stockholder not less than forty-five (45) days prior to such public or private
offering, which notice shall set forth all material terms of the proposed
transaction, including, without limitation, the manner of sale and the per share
sale price or the amount and type of other consideration to be received by the
Company. In the event that the Company offers shares

                                     - 8 -
<PAGE>   9
or other securities where the value of such shares or other securities is based
upon a valuation of the Company that is equal to or greater than $47.5 million,
then each of the Series F Purchasers, as a group, and BG Media shall have the
first right, by sending irrevocable written notice thereof to the Company within
twenty (20) days after receipt of the Company's notice, to purchase up to Ten
Million Dollars ($10,000,000) of such shares or other securities being offered
by the Company at the same price offered to the public or in the private
offering (or, if the sale is not for cash, at the fair market value of the
property or other consideration received by the Company (as determined by an
independent third party appraiser selected by a majority vote of the shares held
by the Series F Purchasers, BG Media, Keystone and Apex)), of which up to Two
Million Dollars ($2,000,000) of the shares or other securities purchased by BG
Media may be allocated and transferred, in BG Media's sole discretion, to Banque
Paribas or its affiliates, and the other Stockholders shall have the right, by
sending irrevocable written notice thereof to the Company within thirty (30)
days after receipt of the Company's notice, to purchase their pro rata portion
of the remaining shares or other securities, if any, in the offering on the same
basis as the Series F Purchasers, as a group, and BG Media. In the event that
the Company offers shares or other securities where the value of such shares or
other securities is based upon a valuation of the Company that is less than
$47.5 million, then each Stockholder shall have the right, by sending
irrevocable written notice thereof to the Company within twenty (20) days after
receipt of the Company's notice, to purchase at the same price sold to the
public or in the private offering (or, if the sale is not for cash, at the fair
market value of the property or other consideration received by the Company (as
determined by an independent third party appraiser selected by a majority vote
of the shares held by the Series F Purchasers, BG Media, Keystone and Apex)),
such number of shares of Common Stock or other securities as is necessary to
maintain its or his respective percentage ownership of Shares as it existed
immediately prior to such offering. A closing for the purchase of Common Stock
or other securities pursuant to this Section 6 shall occur on the later of (i)
the date on which such public or private offering occurs and (ii) such later
date as may be agreed to by the Stockholders who have exercised their rights
hereunder and the Company, at a time and place specified by such Stockholders in
a notice provided to the Company at least ten (10) days prior to such closing.
In connection with such closing, the Company and such Stockholders shall provide
such customary closing certificates and opinions as such Stockholders or the
Company, as appropriate, shall reasonably request.

7.       Anti-Dilution Protections.

         In the event that the relative ownership percentages of Shares, as
among the Stockholders, should be altered, as a result of a stock split, stock
dividend or combination of Shares or any reclassification, reorganization,
redesignation, merger, consolidation, recapitalization, split-up, spin-off,
distribution to stockholders, combination of Shares or otherwise (other than
pursuant to a transaction to which Section 6 would apply or as a result of any
Transfer of Shares by any Stockholder), the number of Shares held by the
Stockholders shall be appropriately and proportionately adjusted to maintain,
after giving effect to such action, among the Stockholders, the same relative
ownership percentages of Shares as existed immediately prior to such action.

8.       Enforceability.

                                     - 9 -
<PAGE>   10
         8.01 Specific Performance. The parties hereto recognize and hereby
acknowledge that it is impossible to measure in money the damages which would
result to a party hereto by reason of a failure of any of the parties hereto to
perform any of the obligations imposed upon it or him under this Agreement.
Therefore, if any party hereto should institute an action or proceeding to
enforce the provisions hereof, any person, including the Company, against whom
such action or proceeding is thereby brought hereby waives the claim or defense
that such party has an adequate remedy at law, and such person shall not urge in
any action or proceeding the claim or defense that such a remedy at law exists.

         8.02 Separate Agreement. The parties hereto recognize, acknowledge and
agree that this Agreement constitutes a separate agreement independently
supported by good and adequate consideration, the receipt and sufficiency of
which are hereby acknowledged, and that this Agreement shall be interpreted,
construed and enforced separate and apart from any other agreements between or
among the parties hereto. The parties hereto further agree that no claim or
cause of action of any party hereto against any other party hereto arising under
any other agreement between or among the parties hereto or out of any set of
facts shall constitute a defense to the enforcement of this Agreement.

9.       Additional Parties Hereto.

         9.01 Permitted Transferees. Any Permitted Transferee of a Stockholder
who hereafter becomes a holder of Shares shall and must become a party hereto by
signing a counterpart signature page. Any such party executing this Agreement
shall thereafter be a party to this Agreement as fully and to the same extent as
if he or it had been an original signatory party hereof and shall be deemed to
be a "Stockholder" for the purposes hereof.

         9.02 Other Transferees. Unless this provision is expressly waived in
writing by all Stockholders, any person who hereafter acquires shares from the
Stockholders in excess of 2.5% of the total Shares outstanding shall and must
become a party hereto by executing a counterpart signature page. Any such party
executing this Agreement shall thereafter be a party to this agreement as fully
and to the same effect as if he or it had been an original signatory party
hereof and shall be deemed to be a Stockholder for the purposes hereof.

10.      Legends on Stock Certificates.

         10.01 In addition to compliance with the terms of this Agreement, no
Transfer of Shares may be made except in compliance with applicable federal and
state securities laws. Accordingly, each certificate representing Shares now or
hereafter held by or issued to any Stockholder shall have placed thereon a
legend in substantially the following form:

             "THE SECURITIES ACT OF 1933 AND STATE SECURITIES LAWS

                  "The securities represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended, or
                  any applicable state securities laws and cannot be sold or
                  transferred

                                     - 10 -
<PAGE>   11
                  unless (i) a Registration Statement under the Securities Act
                  of 1933, as amended, and any applicable state securities laws
                  is then in effect with respect to the securities represented
                  hereby; or (ii) a written opinion from legal counsel
                  reasonably acceptable to the issuer is obtained to the effect
                  that an exemption from registration under the Securities Act
                  of 1933, as amended, and any applicable state securities laws
                  is available with respect to the proposed sale or transfer and
                  that no such registration is required; or (iii) a no action
                  letter or its then equivalent with respect to such sale or
                  transfer has been issued by the Staff of the Securities and
                  Exchange Commission and any applicable state securities
                  governmental body."

         10.02 In addition to the foregoing, each certificate representing
shares of stock of the Company subject to this Agreement shall bear in
conspicuous type the following legend:

                  "The shares of stock represented by this certificate (and all
                  transfers thereof) are subject to the terms of a Fourth
                  Amended and Restated Stockholders Agreement, dated as of
                  December 22, 1999 (and all amendments thereto), by and among
                  certain stockholders of the Company and the Company, a copy of
                  which is on file at the main office of the Company. Any sale,
                  assignment, transfer, gift, pledge, encumbrance or other
                  disposition of the shares evidenced by this certificate not in
                  conformity with said Agreement shall be invalid."

11. Termination. Unless earlier terminated by agreement of the parties hereto,
including all of the Stockholders and their Permitted Transferees who may
hereafter become party hereto, this Agreement shall terminate upon the earlier
to occur of (a) the twentieth (20th) anniversary of the date hereof and (b) such
time as the Company shall have successfully completed an underwritten public
offering of its Common Stock.

12. Notices. All communications in connection with this Agreement shall be in
writing and shall be deemed properly given if hand delivered or sent by
telecopier (provided that such communication is confirmed by same-day deposit in
the United States mail) or overnight courier with adequate evidence of delivery
or sent by registered or certified mail, return receipt requested, and, if to a
Stockholder, addressed to such Stockholder's address as shown on the signature
page or other such address or persons as such Stockholder may designate from
time to time, and if to the Company, at its offices at:

                  Intelligent Information Incorporated
                  181 Harbor Drive
                  Third Floor
                  Stamford, CT 06902
                  Attention: Stephen G. Maloney

                                     - 11 -
<PAGE>   12
                             President and Chief Executive Officer

         with a copy to:

                  Piper Marbury Rudnick & Wolfe LLP
                  1251 Avenue of the Americas
                  New York, NY 10020
                  Attention: Michael Hirschberg, Esq.

or such other addresses or persons as the recipient shall have designated to the
sender by a written notice given in accordance with this Section. Any notice
called for hereunder shall be deemed given when received.

13. Entire Agreement. This Agreement, that certain Stock Purchase Agreement of
even date herewith between the Series F Purchasers and the Company (the "SERIES
F PURCHASE AGREEMENT"), that certain Stock Purchase Agreement dated as of
February 1, 1999 between BG Media and the Company (the "BG MEDIA PURCHASE
AGREEMENT"), that certain Third Amended and Restated Registration Rights
Agreement of even date herewith, those certain Put Option Agreements of even
date herewith, dated as of February 12, 1999 and as of August 11, 1998 by and
among the parties thereto, that certain Preferred Stock Purchase Agreement dated
August 30, 1996 between Keystone and the Company and that certain Series D
Preferred Stock Purchase Agreement dated as of August 11, 1998 between Apex and
the Company constitute the entire agreement between the parties hereto
pertaining to the subject matter hereof and are the final, complete and
exclusive expression of the terms and conditions thereof; provided, however,
that to the extent that any provisions in the foregoing agreements are contrary
to the provisions of the Related Agreements dated as of the date hereof, the
provisions of the Related Agreements dated as of the date hereof shall control.
All prior agreements, representations, negotiations and understandings of the
parties hereto, oral or written, express or implied, are hereby superseded and
merged herein.

14. Modification. No addition to or modification of any provision contained in
this Agreement shall be effective unless fully set forth in writing signed by
the parties hereto.

15. Governing Law. This Agreement shall be governed and construed under the laws
of the State of New York (without giving effect to principles of conflicts of
law).

16. Successors and Assigns. The rights and obligations set forth in this
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective legal representatives, permitted transferees, successors
and assigns.

17. Captions. The captions of the several sections and paragraphs of this
Agreement are included for reference only and shall not limit or otherwise
affect the meaning thereof.

18. Amendments. Neither this Agreement nor any term or provision hereof may be
amended, waived, discharged or terminated except in writing signed by all
parties to this Agreement.

                                     - 12 -
<PAGE>   13
19. Arbitration. Any dispute arising in connection with this Agreement shall be
submitted to binding arbitration in accordance with Section 9.10 of that certain
Stock Purchase Agreement of even date herewith between the Company and the
Series F Purchasers.

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

                                     - 13 -
<PAGE>   14
         IN WITNESS WHEREOF, the parties hereto have executed this Shareholders
Agreement as of the date and year first above written.

                                       INTELLIGENT INFORMATION INCORPORATED

                                       By: /s/ Stephen G. Maloney
                                           -------------------------------------
                                           Stephen G. Maloney
                                           President and Chief Executive Officer

                                       BG MEDIA INVESTORS L.P.
                                           399 Park Avenue
                                           19th Floor
                                           New York, NY 10022

                                           By: BG Media Investors LLC,
                                               its General Partner

                                       By: /s/ J. William Grimes
                                           -------------------------------------
                                               J. William Grimes
                                               Member

                                       KEYSTONE VENTURE IV, L.P.
                                                1601 Market Street
                                                Philadelphia, PA  19103

                                                By: Keystone Venture IV
                                                    Management Company L.P.,
                                                    its General Partner

                                                By: Keystone MCGP, Inc.,
                                                    its General Partner

                                       By: /s/ Kerry J. Dale
                                           -------------------------------------
                                           Kerry J. Dale
                                           Vice President

                                     - 14 -
<PAGE>   15
                                       APEX INVESTMENT FUND III, L.P.
                                                233 South Wacker Drive
                                                Suite 9600
                                                Chicago, IL 60606

                                                By: Apex Management III, LLC
                                                By: Stellar Investment Co.

                                       By: /s/ James A. Johnson
                                           -------------------------------------
                                               James A. Johnson
                                               President

                                       APEX STRATEGIC PARTNERS
                                               233 South Wacker Drive
                                               Suite 9600
                                               Chicago, IL 60606

                                               By: Apex Management III, LLC
                                               By: Stellar Investment Co.

                                       By: /s/ James A. Johnson
                                           -------------------------------------
                                               James A. Johnson
                                               President

                                       /s/ Robert M. Unnold
                                       -----------------------------------------
                                       ROBERT M. UNNOLD
                                       52 Lanark Road
                                       Stamford, CT  06902

                                       /s/ Stephen G. Maloney
                                       -----------------------------------------
                                       STEPHEN G. MALONEY
                                       1766 Shippan Avenue
                                       Stamford, CT  06902

                                       /s/ Donald F. Christino
                                       -----------------------------------------
                                       DONALD F. CHRISTINO
                                       57 Mitchell Street
                                       Stamford, CT  06902

                                       /s/ W. Peter Daniels
                                       -----------------------------------------
                                       W. PETER DANIELS
                                       21 Susan Place
                                       Katonah, NY  10536

                                     - 15 -
<PAGE>   16
                                       INTELLIGENT INVESTMENT PARTNERS, INC.

                                       By: /s/      [illegible]
                                           ------------------------------------
                                           Name:
                                           Title:
                                           Address:
                                           City, State:
                                           Phone:
                                           Fax:

                                     - 16 -
<PAGE>   17
                                       GE CAPITAL EQUITY INVESTMENTS, INC.

                                       By: /s/  Brian Graff
                                           -------------------------------------
                                           Brian Graff
                                           Vice President
                                           120 Long Ridge Road
                                           Stamford, CT  06927
                                           Phone: 203-357-3982
                                           Fax:   203-961-2088

                                     - 17 -
<PAGE>   18
                                       NBC INTERACTIVE MEDIA, INC.

                                       By: /s/ Margaret T. Murphy
                                           -------------------------------------
                                           Margaret T. Murphy
                                           Vice President
                                           30 Rockefeller Plaza
                                           New York, NY  10020
                                           Phone: 212-664-6163

                                     - 18 -
<PAGE>   19
                                       SPINNAKER CROSSOVER INSTITUTIONAL FUND,
                                           L.P.

                                       By: /s/  Eric Moore
                                           -------------------------------------
                                           Title: Controller
                                           Address: 1875 S. Grant St. Ste. 600
                                           San Mateo, CA  94402City, State, Zip:
                                           Phone: (650) 287-2200
                                           Fax:   (650) 522-8497

                                       SPINNAKER CROSSOVER FUND, L.P.

                                       By: /s/  Eric Moore
                                           -------------------------------------
                                           Title: Controller
                                           Address: 1875 S. Grant St. Ste. 600
                                           San Mateo, CA  94402City, State, Zip:
                                           Phone: (650) 287-2200
                                           Fax:   (650) 522-8497

                                       SPINNAKER CLIPPER FUND, L.P.

                                       By: /s/  Eric Moore
                                           -------------------------------------
                                           Title: Controller
                                           Address: 1875 S. Grant St. Ste. 600
                                           San Mateo, CA  94402City, State, Zip:
                                           Phone: (650) 287-2200
                                           Fax:   (650) 522-8497

                                     - 19 -
<PAGE>   20
                                       KEYSTONE VENTURE V, L.P.

                                           By:  Keystone V Partners, L.P.,
                                                Its General Partner

                                           By:  Keystone Management Co., Inc.,
                                                the General Partner of Keystone
                                                V Partners, L.P.

                                       By: /s/  Kerry J. Dale
                                           -------------------------------------
                                           Kerry J. Dale, Managing Director

                                     - 20 -
<PAGE>   21
                                       SONY CORPORATION OF AMERICA

                                       By: /s/ Marinus N. Henny
                                           -------------------------------------
                                           Name:  Marinus N. Henny
                                           Title: CFO

                                       SONY MUSIC, A GROUP OF SONY MUSIC
                                           ENTERTAINMENT, INC.

                                       By: /s/ Ron Wilcox
                                           -------------------------------------
                                           Name:  Ron Wilcox
                                           Title: Senior Vice President
                                           Business Affairs and Administration

                                     - 21 -
<PAGE>   22
                                       SUSQUEHANNA PARTNERS, GP

                                       By: /s/ Joel Greenberg
                                           -------------------------------------
                                           Joel Greenberg
                                           Managing Director
                                           401 City Line Ave., Suite 220
                                           Bala Cynwyd, PA  19004-1122
                                           Phone: 610-617-2614
                                           Fax:   610-617-2908

                                           with copies to:

                                           Michael J. Howe
                                           Associate Director
                                           Susquehanna Financial Group
                                           401 City Line Ave., Suite 220
                                           Bala Cynwyd, PA  19004-1122
                                           Phone: 610-617-2702
                                           Fax:   610-617-2707

                                           and

                                           Michael L. Spolan, Esq.
                                           General Counsel and Secretary
                                           Susquehanna Financial Group
                                           425 California Street, Suite 1100
                                           San Francisco, CA 94104
                                           Phone: 415-403-6500
                                           Fax:   415-403-6525

                                     - 22 -
<PAGE>   23
                                       CLEARNET COMMUNICATIONS, INC.

                                       By: /s/ John H. Phillips
                                           -------------------------------------
                                           John H. Phillips
                                           Executive Vice President, Carrier
                                           Relations & General Counsel
                                           200 Consilium, Suite 1600
                                           Scarborough, Ont.  M1H 3J3
                                           Phone: 416-279-3009
                                           Fax:   416-279-2995

                                     - 23 -
<PAGE>   24
                                       BT INVESTMENT PARTNERS, INC.

                                       By: /s/ Kristine Cicardo
                                           -------------------------------------
                                           Kristine Cicardo
                                           Vice President
                                           130 Liberty Street
                                           New York, NY  10006
                                           Phone: 212-250-2500
                                           Fax:   212-669-1530

                                     - 24 -
<PAGE>   25
                                       CONNECTICUT DEVELOPMENT AUTHORITY

                                       By: /s/ Donald G. Reed
                                           --------------------
                                           Donald G. Reed
                                           Senior Vice President and Managing
                                           Director
                                           999 West Street
                                           Rocky Hill, CT 06067
                                           Phone: 860-258-7812
                                           Fax:   860-257-7582

                                     - 25 -
<PAGE>   26
                                    EXHIBIT A

<TABLE>
<S>                                                    <C>
         Common Stock
         ------------
         Robert M. Unnold                              2,145,000 Shares
         Stephen G. Maloney                            1,471,666 Shares
         Donald F. Christino                           1,065,000 Shares
         W. Peter Daniels                                220,000 Shares
         Keystone Venture IV, L.P.                        62,858 Shares

         Series B Preferred Stock
         ------------------------
         Keystone Venture IV, L.P.                         1,705 Shares

         Series C Preferred Stock
         ------------------------
         Keystone Venture IV, L.P.                           421 Shares

         Series D Preferred Stock
         ------------------------
         Apex Investment Fund III, L.P.                      802 Shares
         Apex Strategic Partners, LLC                         41 Shares

         Series E Preferred Stock
         ------------------------
         BG Media Investors L.P.                         9,643.2 Shares

</TABLE>

                                     - 26 -
<PAGE>   27
<TABLE>
<S>                                                    <C>
         Series F Preferred Stock

         Intelligent Investment Partners, Inc.          1,262.50 Shares
         GE Capital Equity Investments, Inc.            1,262.50 Shares
         NBC Interactive Media, Inc.                    1,262.50 Shares
         Spinnaker Crossover Institutional Fund, L.P.   1,229.50 Shares
         Spinnaker Crossover Fund, L.P.                    17    Shares
         Spinnaker Clipper Fund, L.P.                      16    Shares
         Keystone Venture V, L.P.                         757.50 Shares
         SONY Corporation of America                      757.50 Shares
         SONY Music, A Group of
            SONY Music Entertainment, Inc.                505    Shares
         Susquehanna Partners, GP                         378.75 Shares
         Clearnet Communications, Inc.                    340.87 Shares
         BT Investment Partners, Inc.                     252.50 Shares
         Connecticut Development Authority                206.21 Shares
</TABLE>

                                     - 27 -

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