Document:

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                                                                    EXHIBIT 4.03

                              AT HOME CORPORATION

                       1997 EMPLOYEE STOCK PURCHASE PLAN

                          As Adopted May 15, 1997 and
                   Amended March 18, 1998 and April 18, 2000

     1.   ESTABLISHMENT OF PLAN.  At Home Corporation (the "COMPANY") proposes
          ---------------------
to grant options for purchase of the Company's Series A Common Stock to eligible
employees of the Company and its Participating Subsidiaries (as hereinafter
defined) pursuant to this Employee Stock Purchase Plan (this "PLAN").  For
purposes of this Plan, "PARENT CORPORATION" and "SUBSIDIARY" (collectively,
"PARTICIPATING SUBSIDIARIES") shall have the same meanings as "parent
corporation" and "subsidiary corporation" in Sections 424(e) and 424(f),
respectively, of the Internal Revenue Code of 1986, as amended (the "CODE").
"PARTICIPATING SUBSIDIARIES" are Parent Corporations or Subsidiaries that the
Board of Directors of the Company (the "BOARD") designates from time to time as
corporations that shall participate in this Plan.  The Company intends this Plan
to qualify as an "employee stock purchase plan" under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan
shall be so construed.  Any term not expressly defined in this Plan but defined
for purposes of Section 423 of the Code shall have the same definition herein. A
total of 5,000,000 shares/*/ of the Company's Series A Common Stock is reserved
for issuance under this Plan. Such number shall be subject to adjustments
effected in accordance with Section 14 of this Plan.

     2.   PURPOSE.  The purpose of this Plan is to provide eligible employees of
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the Company and Participating Subsidiaries with a convenient means of acquiring
an equity interest in the Company through payroll deductions, to enhance such
employees' sense of participation in the affairs of the Company and
Participating Subsidiaries, and to provide an incentive for continued
employment.

     3.   ADMINISTRATION.  This Plan shall be administered by the Compensation
          --------------
Committee of the Board (the "COMMITTEE").  Subject to the provisions of this
Plan and the limitations of Section 423 of the Code or any successor provision
in the Code, all questions of interpretation or application of this Plan shall
be determined by the Committee and its decisions shall be final and binding upon
all participants.  Members of the Committee shall receive no compensation for
their services in connection with the administration of this Plan, other than
standard fees as established from time to time by the Board for services
rendered by Board members serving on Board committees.  All expenses incurred in
connection with the administration of this Plan shall be paid by the Company.

     4.   ELIGIBILITY.  Any employee of the Company or the Participating
          -----------
Subsidiaries is eligible to participate in an Offering Period (as hereinafter
defined) under this Plan except the following:

     (a)  employees who are not employed by the Company or Participating
          Subsidiaries fifteen (15) days before the beginning of such Offering
          Period, except that employees who are employed on the effective date
          of the registration statement filed by the Company with the Securities
          and Exchange Commission ("SEC") under the Securities Act of 1933, as
          amended (the "SECURITIES ACT") registering the initial public offering
          of the Company's Series A Common Stock shall be eligible to
          participate in the first Offering Period under the Plan;

     (b)  employees who are customarily employed for twenty (20) hours or less
          per week;

     (c)  employees who are customarily employed for five (5) months or less in
          a calendar year;

     (d)  employees who, together with any other person whose stock would be
          attributed to such employee pursuant to Section 424(d) of the Code,
          own stock or hold options to purchase

---------------------
/*/ Reflects an increase of 3,000,000 shares on April 18, 2000.
<PAGE>

          stock possessing five percent (5%) or more of the total combined
          voting power or value of all classes of stock of the Company or any of
          its Participating Subsidiaries or who, as a result of being granted an
          option under this Plan with respect to such Offering Period, would own
          stock or hold options to purchase stock possessing five percent (5%)
          or more of the total combined voting power or value of all classes of
          stock of the Company or any of its Participating Subsidiaries; and

     (e)  individuals who provide services to the Company or any of its
          Participating Subsidiaries as independent contractors whether or not
          reclassified as common law employees, unless the Company or a
          Participating Subsidiary withholds or is required to withhold U.S.
          Federal employment taxes for such individuals pursuant to Section 3402
          of the Code.

     5.   OFFERING DATES.  The offering periods of this Plan (each, an "OFFERING
          --------------
PERIOD") shall be of twenty-four (24) months duration commencing on February 15
and August 15 of each year and ending on August 14 and February 14 of each year;
provided, however, that notwithstanding the foregoing, the first such Offering
Period shall commence on the first business day on which price quotations for
the Company's Series A Common Stock are available on the Nasdaq National Market
(the "FIRST OFFERING DATE") and shall end on August 14, 1999. Except for the
first Offering Period, each Offering Period shall consist of four (4) six-month
purchase periods (individually, a "PURCHASE PERIOD") during which payroll
deductions of the participants are accumulated under this Plan. The first
Offering Period shall consist of no fewer than three Purchase Periods, any of
which may be greater or less than six months as determined by the Committee. The
first business day of each Offering Period is referred to as the "OFFERING
DATE". The last business day of each Purchase Period is referred to as the
"PURCHASE DATE". The Committee shall have the power to change the duration of
Offering Periods or Purchase Periods with respect to offerings without
stockholder approval if such change is announced at least fifteen (15) days
prior to the scheduled beginning of the first Offering Period or Purchase Period
to be affected.

     6.   PARTICIPATION IN THIS PLAN.  Eligible employees may become
          --------------------------
participants in an Offering Period under this Plan on the first Offering Date
after satisfying the eligibility requirements by delivering a subscription
agreement to the Company's treasury department (the "TREASURY DEPARTMENT") not
later than fifteen (15) days before such Offering Date unless a later time for
filing the subscription agreement authorizing payroll deductions is set by the
Committee for all eligible employees with respect to a given Offering Period. An
eligible employee who does not deliver a subscription agreement to the Treasury
Department by such date after becoming eligible to participate in such Offering
Period shall not participate in that Offering Period or any subsequent Offering
Period unless such employee enrolls in this Plan by filing a subscription
agreement with the Treasury Department not later than fifteen (15) days
preceding a subsequent Offering Date. Once an employee becomes a participant in
an Offering Period, such employee will automatically participate in the Offering
Period commencing immediately following the last day of the prior Offering
Period unless the employee withdraws or is deemed to withdraw from this Plan or
terminates further participation in the Offering Period as set forth in Section
11 below. Such participant is not required to file any additional subscription
agreement in order to continue participation in this Plan.

     7.   GRANT OF OPTION ON ENROLLMENT.  Enrollment by an eligible employee in
          -----------------------------
this Plan with respect to an Offering Period will constitute the grant (as of
the Offering Date) by the Company to such employee of an option to purchase on
the Purchase Date up to that number of shares of Series A Common Stock of the
Company determined by dividing (a) the amount accumulated in such employee's
payroll deduction account during such Purchase Period by (b) the lower of (i)
eighty-five percent (85%) of the fair market value of a share of the Company's
Series A Common Stock on the Offering Date (but in no event less than the par
value of a share of the Company's Series A Common Stock), or (ii) eighty-five
percent (85%) of the fair market value of a share of the Company's Series A
Common Stock on the Purchase Date (but in no event less than the par value of a
share of the Company's Series A Common Stock), provided, however, that the
number of shares of the Company's Series A Common Stock subject to any option
granted pursuant to this Plan shall not exceed the lesser of (a) the maximum
number of shares set by the Committee pursuant to Section 10(c) below with
respect to the
<PAGE>

applicable Purchase Date, or (b) the maximum number of shares which may be
purchased pursuant to Section 10(b) below with respect to the applicable
Purchase Date. The fair market value of a share of the Company's Series A Common
Stock shall be determined as provided in Section 8 hereof.

     8.   PURCHASE PRICE.  The purchase price per share at which a share of
          --------------
Series A Common Stock will be sold in any Offering Period shall be eighty-five
percent (85%) of the lesser of:

     (a)  The fair market value on the Offering Date; or

     (b)  The fair market value on the Purchase Date.

     For purposes of this Plan, the term "FAIR MARKET VALUE" means, as of any
     date, the value of a share of the Company's Series A Common Stock
     determined as follows:

     (a)  if such Series A Common Stock is then quoted on the Nasdaq National
          Market, its closing price on the Nasdaq National Market on the date of
          determination as reported in The Wall Street Journal;

     (b)  if such Series A Common Stock is publicly traded and is then listed on
          a national securities exchange, its closing price on the date of
          determination on the principal national securities exchange on which
          the Series A Common Stock is listed or admitted to trading as reported
          in The Wall Street Journal;

     (c)  if such Series A Common Stock is publicly traded but is not quoted on
          the Nasdaq National Market nor listed or admitted to trading on a
          national securities exchange, the average of the closing bid and asked
          prices on the date of determination as reported in The Wall Street
          Journal; or

     (d)  if none of the foregoing is applicable, by the Board in good faith,
          which in the case of the First Offering Date will be the price per
          share at which shares of the Company's Series A Common Stock are
          initially offered for sale to the public by the Company's underwriters
          in the initial public offering of the Company's Series A Common Stock
          pursuant to a registration statement filed with the SEC under the
          Securities Act.

     9.   PAYMENT OF PURCHASE PRICE; CHANGES IN PAYROLL DEDUCTIONS; ISSUANCE OF
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          SHARES.
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     (a)  The purchase price of the shares is accumulated by regular payroll
          deductions made during each Offering Period.  The deductions are made
          as a percentage of the participant's compensation in one percent (1%)
          increments not less than two percent (2%), nor greater than ten
          percent (10%) or such lower limit set by the Committee.  Compensation
          shall mean base salary, commissions, bonuses, and shift premiums not
          to exceed  $250,000 per calendar year, provided however, that for
          purposes of determining a participant's compensation, any election by
          such participant to reduce his or her regular cash remuneration under
          Sections 125 or 401(k) of the Code shall be treated as if the
          participant did not make such election.  Except for the first Offering
          Period, payroll deductions shall commence on the first payday of the
          Offering Period and shall continue to the end of the Offering Period
          unless sooner altered or terminated as provided in this Plan.  Payroll
          deductions for the first Offering Period shall commence at the end of
          the first full pay period following the First Offering Date.

     (b)  A participant may lower (but not increase) the rate of payroll
          deductions during an Offering Period by filing with the Treasury
          Department a new authorization for payroll deductions, in which case
          the new rate shall become effective for the next payroll period
<PAGE>

          commencing more than fifteen (15) days after the Treasury Department's
          receipt of the authorization and shall continue for the remainder of
          the Offering Period unless changed as described below.  Such change in
          the rate of payroll deductions may be made at any time during an
          Offering Period, but not more than one (1) change may be made
          effective during any Offering Period.  A participant may increase or
          decrease the rate of payroll deductions for any subsequent Offering
          Period by filing with the Treasury Department a new authorization for
          payroll deductions not later than fifteen (15) days before the
          beginning of such Offering Period.

     (c)  All payroll deductions made for a participant are credited to his or
          her account under this Plan and are deposited with the general funds
          of the Company.  No interest accrues on the payroll deductions.  All
          payroll deductions received or held by the Company may be used by the
          Company for any corporate purpose, and the Company shall not be
          obligated to segregate such payroll deductions.

     (d)  On each Purchase Date, so long as this Plan remains in effect and
          provided that the participant has not submitted a signed and completed
          withdrawal form before that date which notifies the Company that the
          participant  wishes to withdraw from that Offering Period under this
          Plan and have all payroll deductions accumulated in the account
          maintained on behalf of the participant as of that date returned to
          the participant, the Company shall apply the funds then in the
          participant's account to the purchase of whole shares of Series A
          Common Stock reserved under the option granted to such participant
          with respect to the Offering Period to the extent that such option is
          exercisable on the Purchase Date.  The purchase price per share shall
          be as specified in Section 8 of this Plan.  Any cash remaining in a
          participant's account after such purchase of shares shall be refunded
          to such participant in cash, without interest; provided, however that
          any amount remaining in such participant's account on a Purchase Date
          which is less than the amount necessary to purchase a full share of
          Series A Common Stock of the Company shall be carried forward, without
          interest, into the next Purchase Period or Offering Period, as the
          case may be.  In the event that this Plan has been oversubscribed, all
          funds not used to purchase shares on the Purchase Date shall be
          returned to the participant, without interest.  No Series A Common
          Stock shall be purchased on a Purchase Date on behalf of any employee
          whose participation in this Plan has terminated prior to such Purchase
          Date.

     (e)  As promptly as practicable after the Purchase Date, the Company shall
          issue shares for the participant's benefit representing the shares
          purchased upon exercise of his or her option.

     (f)  During a participant's lifetime, such participant's option to purchase
          shares hereunder is exercisable only by him or her.  The participant
          will have no interest or voting right in shares covered by his or her
          option until such option has been exercised.

     10.  LIMITATIONS ON SHARES TO BE PURCHASED.
          -------------------------------------

     (a)  No participant shall be entitled to purchase stock under this Plan at
          a rate which, when aggregated with his or her rights to purchase stock
          under all other employee stock purchase plans of the Company or any
          Subsidiary, exceeds $25,000 in fair market value, determined as of the
          Offering Date (or such other limit as may be imposed by the Code) for
          each calendar year in which the employee participates in this Plan.

     (b)  No more than two hundred percent (200%) of the number of shares
          determined by using eighty-five percent (85%) of the fair market value
          of a share of the Company's Series A Common Stock on the Offering Date
          as the denominator may be purchased by a participant on any single
          Purchase Date.
<PAGE>

     (c)  No participant shall be entitled to purchase more than the Maximum
          Share Amount (as defined below) on any single Purchase Date.  Not less
          than thirty (30) days prior to the commencement of any Offering
          Period, the Committee may, in its sole discretion, set a maximum
          number of shares which may be purchased by any employee at any single
          Purchase Date (hereinafter the "MAXIMUM SHARE AMOUNT").  Until
          otherwise determined by the Committee, there shall be no Maximum Share
          Amount.  In no event shall the Maximum Share Amount exceed the amounts
          permitted under Section 10(b) above.  If a new Maximum Share Amount is
          set, then all participants must be notified of such Maximum Share
          Amount prior to the commencement of the next Offering Period.  Once
          the Maximum Share Amount is set, it shall continue to apply with
          respect to all succeeding Purchase Dates and Offering Periods unless
          revised by the Committee as set forth above.

     (d)  If the number of shares to be purchased on a Purchase Date by all
          employees participating in this Plan exceeds the number of shares then
          available for issuance under this Plan, then the Company will make a
          pro rata allocation of the remaining shares in as uniform a manner as
          shall be reasonably practicable and as the Committee shall determine
          to be equitable.  In such event, the Company shall give written notice
          of such reduction of the number of shares to be purchased under a
          participant's option to each participant affected thereby.

     (e)  Any payroll deductions accumulated in a participant's account which
          are not used to purchase stock due to the limitations in this Section
          10 shall be returned to the participant as soon as practicable after
          the end of the applicable Purchase Period, without interest.

     11.  WITHDRAWAL.
          ----------

     (a)  Each participant may withdraw from an Offering Period under this Plan
          by signing and delivering to the Treasury Department a written notice
          to that effect on a form provided for such purpose.  Such withdrawal
          may be elected at any time at least fifteen (15) days prior to the end
          of an Offering Period.

     (b)  Upon withdrawal from this Plan, the accumulated payroll deductions
          shall be returned to the withdrawn participant, without interest, and
          his or her interest in this Plan shall terminate.  In the event a
          participant voluntarily elects to withdraw from this Plan, he or she
          may not resume his or her participation in this Plan during the same
          Offering Period, but he or she may participate in any Offering Period
          under this Plan which commences on a date subsequent to such
          withdrawal by filing a new authorization for payroll deductions in the
          same manner as set forth above for initial participation in this Plan.

     (c)  If the purchase price on the first day of any current Offering Period
          in which a participant is enrolled is higher than the purchase price
          on the first day of any subsequent Offering Period, the Company will
          automatically enroll such participant in the subsequent Offering
          Period.  Any funds accumulated in a participant's account prior to the
          first day of such subsequent Offering Period will be applied to the
          purchase of shares on the Purchase Date immediately prior to the first
          day of such subsequent Offering Period.  A participant does not need
          to file any forms with the Company to automatically be enrolled in the
          subsequent Offering Period

     12.  TERMINATION OF EMPLOYMENT.  Termination of a participant's employment
          -------------------------
for any reason, including retirement, death or the failure of a participant to
remain an eligible employee of the Company or of a Participating Subsidiary,
immediately terminates his or her participation in this Plan.  In such event,
the payroll deductions credited to the participant's account will be returned to
him or her or, in the case of his or her death, to his or her legal
representative, without interest.  For purposes of this Section 12, an employee
will not be deemed to have terminated employment or failed to remain in the
continuous employ of the Company or of a Participating Subsidiary in the case of
sick leave, military leave, or any
<PAGE>

other leave of absence approved by the Board; provided that such leave is for a
period of not more than ninety (90) days or reemployment upon the expiration of
such leave is guaranteed by contract or statute.

     13.  RETURN OF PAYROLL DEDUCTIONS.  In the event a participant's interest
          ----------------------------
in this Plan is terminated by withdrawal, termination of employment or
otherwise, or in the event this Plan is terminated by the Board, the Company
shall promptly deliver to the participant all payroll deductions credited to
such participant's account.  No interest shall accrue on the payroll deductions
of a participant in this Plan.

     14.  CAPITAL CHANGES.  Subject to any required action by the stockholders
          ---------------
of the Company, the number of shares of Series A Common Stock covered by each
option under this Plan which has not yet been exercised and the number of shares
of Series A Common Stock which have been authorized for issuance under this Plan
but have not yet been placed under option (collectively, the "RESERVES"), as
well as the price per share of Series A Common Stock covered by each option
under this Plan which has not yet been exercised, shall be proportionately
adjusted for any increase or decrease in the number of issued and outstanding
shares of Series A Common Stock of the Company resulting from a stock split or
the payment of a stock dividend (but only on the Series A Common Stock) or any
other increase or decrease in the number of issued and outstanding shares of
Common Stock effected without receipt of any consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration".
Such adjustment shall be made by the Committee, whose determination shall be
final, binding and conclusive.  Except as expressly provided herein, no issue by
the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Series A Common
Stock subject to an option.

     In the event of the proposed dissolution or liquidation of the Company, the
Offering Period will terminate immediately prior to the consummation of such
proposed action, unless otherwise provided by the Committee.  The Committee may,
in the exercise of its sole discretion in such instances, declare that the
options under this Plan shall terminate as of a date fixed by the Committee and
give each participant the right to exercise his or her option as to all of the
optioned stock, including shares which would not otherwise be exercisable.  In
the event of (i) a merger or consolidation in which the Company is not the
surviving corporation (other than a merger or consolidation with a wholly-owned
subsidiary, a reincorporation of the Company in a different jurisdiction, or
other transaction in which there is no substantial change in the stockholders of
the Company or their relative stock holdings and the options under this Plan are
assumed, converted or replaced by the successor corporation, which assumption
will be binding on all participants), (ii) a merger in which the Company is the
surviving corporation but after which the stockholders of the Company
immediately prior to such merger (other than any stockholder that merges, or
which owns or controls another corporation that merges, with the Company in such
merger) cease to own their shares or other equity interest in the Company, (iii)
the sale of substantially all of the assets of the Company or (iv) the
acquisition, sale, or transfer of more than 50% of the outstanding shares of the
Company by tender offer or similar transaction, each option under this Plan may
be assumed or an equivalent option may be substituted by such successor
corporation or a parent or subsidiary of such successor corporation. In the
event such surviving corporation refuses to assume or substitute options under
this Plan, (i) this Plan will terminate upon the consummation of such
transaction, unless otherwise provided by the Committee and (ii) the Committee
may declare that the options under this Plan shall terminate as of a date fixed
by the Committee and give each participant the right to exercise his or her
option as to all of the optioned stock. If the Committee makes an option fully
exercisable in the event of a merger, consolidation or sale of assets, the
Committee shall notify the participant that the option shall be fully
exercisable for a certain period, and the option and this Plan will terminate
upon the expiration of such period.

     The Committee may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the Reserves, as well as the price
per share of Series A Common Stock covered by each outstanding option, in the
event that the Company effects one or more reorganizations, recapitalizations,
rights offerings or other increases or reductions of shares of its outstanding
Series A Common Stock, or in the event of the Company being consolidated with or
merged into any other corporation.
<PAGE>

     15.  NONASSIGNABILITY.  Neither payroll deductions credited to a
          ----------------
participant's account nor any rights with regard to the exercise of an option or
to receive shares under this Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 22 hereof) by the participant.  Any such
attempt at assignment, transfer, pledge or other disposition shall be void and
without effect.

     16.  REPORTS.  Individual accounts will be maintained for each participant
          -------
in this Plan.  Each participant shall receive promptly after the end of each
Purchase Period a report of his or her account setting forth the total payroll
deductions accumulated, the number of shares purchased, the per share price
thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

     17.  NOTICE OF DISPOSITION.  Each participant shall notify the Company if
          ---------------------
the participant disposes of any of the shares purchased in any Offering Period
pursuant to this Plan if such disposition occurs within two (2) years from the
Offering Date or within one (1) year from the Purchase Date on which such shares
were purchased (the "NOTICE PERIOD").  Unless such participant is disposing of
any of such shares during the Notice Period, such participant shall keep the
certificates representing such shares in his or her name (and not in the name of
a nominee) during the Notice Period.  The Company may, at any time during the
Notice Period, place a legend or legends on any certificate representing shares
acquired pursuant to this Plan requesting the Company's transfer agent to notify
the Company of any transfer of the shares.  The obligation of the participant to
provide such notice shall continue notwithstanding the placement of any such
legend on the certificates.

     18.  NO RIGHTS TO CONTINUED EMPLOYMENT.  Neither this Plan nor the grant of
          ---------------------------------
any option hereunder shall confer any right on any employee to remain in the
employ of the Company or any Participating Subsidiary, or restrict the right of
the Company or any Participating Subsidiary to terminate such employee's
employment.

     19.  EQUAL RIGHTS AND PRIVILEGES.  All eligible employees shall have equal
          ---------------------------
rights and privileges with respect to this Plan so that this Plan qualifies as
an "employee stock purchase plan" within the meaning of Section 423 or any
successor provision of the Code and the related regulations.  Any provision of
this Plan which is inconsistent with Section 423 or any successor provision of
the Code shall, without further act or amendment by the Company, the Committee
or the Board, be reformed to comply with the requirements of Section 423.  This
Section 19 shall take precedence over all other provisions in this Plan.

     20.  NOTICES.  All notices or other communications by a participant to the
          -------
Company under or in connection with this Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

     21.  TERM; STOCKHOLDER APPROVAL.  After this Plan is adopted by the Board,
          --------------------------
this Plan will become effective on the date that is the First Offering Date (as
defined above).  This Plan shall be approved by the stockholders of the Company,
in any manner permitted by applicable corporate law, within twelve (12) months
before or after the date this Plan is adopted by the Board. No purchase of
shares pursuant to this Plan shall occur prior to such stockholder approval.
This Plan shall continue until the earlier to occur of (a) termination of this
Plan by the Board (which termination may be effected by the Board at any time),
(b) issuance of all of the shares of Series A Common Stock reserved for issuance
under this Plan, or (c) ten (10) years from the adoption of this Plan by the
Board.

     22.  DESIGNATION OF BENEFICIARY.
          --------------------------

     (a)  A participant may file a written designation of a beneficiary who is
          to receive any shares and cash, if any, from the participant's account
          under this Plan in the event of such participant's death subsequent to
          the end of an Purchase Period but prior to delivery to
<PAGE>

          him of such shares and cash. In addition, a participant may file a
          written designation of a beneficiary who is to receive any cash from
          the participant's account under this Plan in the event of such
          participant's death prior to a Purchase Date.

     (b)  Such designation of beneficiary may be changed by the participant at
          any time by written notice.  In the event of the death of a
          participant and in the absence of a beneficiary validly designated
          under this Plan who is living at the time of such participant's death,
          the Company shall deliver such shares or cash to the executor or
          administrator of the estate of the participant, or if no such executor
          or administrator has been appointed (to the knowledge of the Company),
          the Company, in its discretion, may deliver such shares or cash to the
          spouse or to any one or more dependents or relatives of the
          participant, or if no spouse, dependent or relative is known to the
          Company, then to such other person as the Company may designate.

     23.  CONDITIONS UPON ISSUANCE OF SHARES; LIMITATION ON SALE OF SHARES.
          ----------------------------------------------------------------
Shares shall not be issued with respect to an option unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act, the Securities Exchange Act of 1934, the
rules and regulations promulgated thereunder, and the requirements of any stock
exchange or automated quotation system upon which the shares may then be listed,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

     24.  APPLICABLE LAW.  The Plan shall be governed by the substantive laws
          --------------
(excluding the conflict of laws rules) of the State of California.

     25.  AMENDMENT OR TERMINATION OF THIS PLAN.  The Board may at any time
          -------------------------------------
amend, terminate or extend the term of this Plan, except that any such
termination cannot affect options previously granted under this Plan, nor may
any amendment make any change in an option previously granted which would
adversely affect the right of any participant, nor may any amendment be made
without approval of the stockholders of the Company obtained in accordance with
Section 21 hereof within twelve (12) months of the adoption of such amendment
(or earlier if required by Section 21) if such amendment would:

     (a)  increase the number of shares that may be issued under this Plan; or

     (b)  change the designation of the employees (or class of employees)
          eligible for participation in this Plan.<PAGE>
                                                                    EXHIBIT 4.01

                                                               EXECUTION VERSION

                             STOCKHOLDER AGREEMENT

                        dated as of September 28, 2000

                                     among

                          EXODUS COMMUNICATIONS, INC.

                             GLOBAL CROSSING LTD.

                                      and

                  GLOBAL CROSSING GLOBALCENTER HOLDINGS INC.
<PAGE>

                                                               EXECUTION VERSION

                             STOCKHOLDER AGREEMENT

          STOCKHOLDER AGREEMENT, dated as of September 28, 2000, among Exodus
Communications, Inc., a Delaware corporation (together with its successors, the
"Company"), Global Crossing Ltd., a Bermuda company (together with its
 -------
successors, "Global Crossing"), and Global Crossing GlobalCenter Holdings Inc.,
             ---------------
a Delaware corporation (together with its successors and permitted assigns,
"Investor").
 --------

                             W I T N E S S E T H :
                             - - - - - - - - - -

          WHEREAS, the Company has entered into an Agreement and Plan of Merger,
dated as of the date hereof (the "Merger Agreement"), pursuant to which the
                                  ----------------
Investor, the owner of GlobalCenter Holding Co., a Delaware corporation, has
agreed to a business combination transaction wherein GlobalCenter Inc., a
Delaware corporation, will become a wholly owned indirect subsidiary of the
Company; and

          WHEREAS, the parties hereto deem it in their best interests and in the
best interests of the Company to provide for certain matters with respect to the
governance of the Company and desire to enter into this Agreement in order to
effectuate that purpose.

          NOW, THEREFORE, in consideration of the mutual agreements and
understandings set forth herein, the parties hereto hereby agree as follows:

                                   ARTICLE I

                              CERTAIN DEFINITIONS

          Section 1.1  Definitions. As used in this Agreement, the following
                       -----------
terms shall have the meanings set forth below:

          "Affiliate" shall mean, with respect to any Person, any other Person
           ---------
     that directly or indirectly controls, is controlled by, or is under common
     control with, such Person. As used in this definition, "control" (including
     its correlative meanings, "controlled by" and "under common control with")
     shall mean the possession, directly or indirectly, of power to direct or
     cause the direction of management or policies (whether through ownership of
     securities or partnership or other ownership interests, by contract or
     otherwise); provided, however, no Restricted Party shall be deemed an
                 --------  -------
     Affiliate of the Company and the Company shall not be deemed an Affiliate
     of any Restricted Party.

          "Agreement" shall mean this Agreement as in effect from the Effective
           ---------
     Time and as hereafter from time to time amended, modified or supplemented
     in accordance with the terms hereof.

                                       1
<PAGE>

          "Beneficially Own" shall have the meaning set forth in Rule 13d-3
           ----------------
under the Exchange Act.

          "Change of Control of the Company" shall mean any of the following:
           --------------------------------
     (i) a merger, consolidation or other business combination or transaction to
     which the Company is a party if the shares of Voting Stock of the Company
     outstanding immediately prior to the effective date of such merger,
     consolidation or other business combination or transaction do not represent
     (or the shares of Voting Stock into which they are converted or exchanged
     pursuant to such merger, consolidation or other business combination or
     transaction do not represent) 50% or more of the Total Current Voting Power
     of the surviving corporation (or its parent corporation) following such
     merger, consolidation or other business combination or transaction; (ii) an
     acquisition by any Person (other than the Restricted Parties and their
     Affiliates or any 13D Group of which any of them is a member) of Beneficial
     Ownership of Voting Stock of the Company representing 30% or more of the
     Total Current Voting Power of the Company following such acquisition, (iii)
     a sale of all or substantially all the consolidated assets of the Company
     to any Person or Persons (other than Restricted Parties and their
     Affiliates or any 13D Group of which any of them is a member); or (iv) a
     liquidation or dissolution of the Company.

          "Claim Notice" shall have the meaning set forth in Section 3.3(b).
           ------------

          "Common Stock" shall mean the common stock, par value $0.001 per
           ------------
     share, of the Company and any securities of the Company into which such
     Common Stock may be reclassified, exchanged or converted.

          "Company" shall have the meaning set forth in the preamble hereto.
           -------

          "Designee" shall have the meaning set forth in Section 2.1(a).
           --------

          "Disinterested Stockholder" shall mean any stockholder of the Company
           -------------------------
     who is not (i) an Affiliate of the Company, (ii) a Restricted Party or an
     Affiliate of a Restricted Party or (iii) a member of a 13D Group of which a
     Restricted Party or an Affiliate of a Restricted Party is also a member.

          "Effective Time" shall have the meaning ascribed to it in the Merger
           --------------
     Agreement.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
           ------------
     amended, and the rules and regulations promulgated thereunder.

          "Exodus Rights Plan" shall mean the Stockholder Rights Plan of Exodus,
           ------------------
     as amended to date.

          "Global Crossing" shall have the meaning set forth in the preamble
           ---------------
     hereto.

          "Indemnified Party" shall have the meaning set forth in Section
           -----------------
     3.3(b).

                                       2
<PAGE>

          "Investor Downward Revised Percentage" shall have the meaning set
           ------------------------------------
     forth in Section 4.3.

          "Investor Standstill Limit" means Beneficial Ownership of Voting Stock
           -------------------------
     of the Company representing the percentage of Outstanding Company Common
     Stock to be owned by the Restricted Parties on the Closing Date plus 1%;
     provided that upon an Investor Standstill Reinstatement Event, if the
     --------
     Investor Standstill Revised Limit is greater than the Investor Standstill
     Limit in effect at such time, then the Investor Standstill Revised Limit
     shall thereafter be deemed to be the Investor Standstill Limit; provided,
                                                                     --------
     further, that the Investor Standstill Limit shall be subject to adjustment
     -------
     in accordance with Section 4.3.

          "Investor Standstill Period" shall mean the period beginning at the
           --------------------------
     Effective Time and ending on the occurrence of an Investor Standstill
     Termination Event, provided that the Investor Standstill Period shall
                        --------
     recommence immediately upon the occurrence of an Investor Standstill
     Reinstatement Event.

          "Investor Standstill Reinstatement Event" shall mean the occurrence of
           ---------------------------------------
     any of the following (a) the Investor Standstill Period has terminated
     pursuant to clause (iii) of the definition of "Investor Standstill
     Termination Event" and such Third Party Tender Offer for the Company is
     withdrawn or terminated (without having been consummated) at any time
     during which an Investor Tender Offer is not then pending, (b) the Investor
     Standstill Period has terminated pursuant to clause (iv) of the definition
     of "Investor Standstill Termination Event" due to a Change of Control of
     the Company identified in clause (ii) of the definition thereof and, within
     six months after the occurrence of such Change of Control of the Company,
     the Person whose Beneficial Ownership of Voting Stock of the Company
     triggered such Change of Control of the Company no longer Beneficially Owns
     30% or more of the Total Current Voting Power of the Company or (c) the
     Investor Standstill Period has terminated pursuant to clause (ii) of the
     definition of "Investor Standstill Termination Event," the relevant
     agreement that would have otherwise resulted in a Change of Control of the
     Company has been terminated without a Change of Control of the Company
     having occurred and subsequent to the occurrence of such Investor
     Standstill Termination Event but prior to the termination of such agreement
     (x) the Restricted Parties have not acquired actual ownership of Voting
     Stock of the Company representing in the aggregate a majority of the Total
     Current Voting Power of the Company, and (y) no Restricted Party has
     commenced an Investor Tender Offer. Notwithstanding the foregoing, an
     Investor Standstill Reinstatement Event will not occur if prior to the
     occurrence of the event specified in clause (a), (b) or (c) above that
     would otherwise result in an Investor Standstill Reinstatement Event,
     another Investor Standstill Termination Event occurs for which there has
     not been a related Investor Standstill Reinstatement Event.

          "Investor Standstill Revised Limit" shall mean the percentage of the
           ---------------------------------
     Outstanding Company Common Stock Beneficially Owned by the Restricted
     Parties as of the date the Investor receives written notice from the
     Company of the occurrence of an Investor Standstill Reinstatement Event.

                                       3
<PAGE>

          "Investor Standstill Termination Event" shall mean the earliest to
           -------------------------------------
     occur of the following: (i) the fifth anniversary of the Effective Time,
     (ii) the date the Company enters into an agreement relating to a
     transaction that if consummated will result in a Change of Control of the
     Company, (iii) a Third Party Tender Offer for the Company, (iv) any Change
     of Control of the Company or (v) a reduction in the Restricted Parties'
     aggregate Beneficial Ownership of Voting Stock of the Company to less than
     10% of the Total Current Voting Power of all outstanding Voting Stock of
     the Company; provided, that the Investor Standstill Period will be
                  --------
     immediately reinstated upon the occurrence of an Investor Standstill
     Reinstatement Event.

          "Investor Tender Offer" shall mean a bona fide public tender offer
           ---------------------
     subject to the provisions of Regulation 14D under the Exchange Act, by a
     Restricted Party (or any 13D Group that includes a Restricted Party) to
     purchase or exchange for cash or other consideration all of the Outstanding
     Company Common Stock (other than Common Stock owned by Restricted Parties
     or any Affiliate of a Restricted Party) and which has a minimum condition
     of such number of shares of Common Stock that would result in the
     Restricted Parties Beneficially Owning not less than 51% of the shares of
     Outstanding Company Common Stock on a fully-diluted basis (including all
     shares of Common Stock issuable upon exercise of any option, warrant or
     other right to acquire Common Stock, whether or not then exercisable).

          "Liabilities" means, as to any person or entity, all debts,
           -----------
     liabilities and obligations, direct, indirect, absolute or contingent of
     such person or entity, whether accrued, vested or otherwise, whether known
     or unknown and whether or not actually reflected, or required by generally
     accepted accounting principles to be reflected, in such person or entity's
     balance sheets or other books and records.

          "Losses and Expenses" shall have the meaning set forth in Section
           -------------------
     3.3(a)

          "Merger Agreement" shall mean the Agreement and Plan of Merger, dated
           ----------------
     September 27, 2000 among the Company, the Investor, Exodus Acquisition
     Corp., Global Crossing North America, Inc., GlobalCenter Holding Co. and
     GlobalCenter Inc., as such agreement may be amended, supplemented or
     otherwise modified from time to time.

          "Notice Period" shall have the meaning set forth in Section 3.3(b).
           -------------

          "Outstanding Company Common Stock" shall mean, at any time, the total
           --------------------------------
     number of shares of outstanding Common Stock at such time.

          "Person" shall mean an individual, corporation, unincorporated
           ------
     association, partnership, group (as defined in Section 13(d)(3) of the
     Exchange Act), trust, joint stock company, joint venture, business trust or
     unincorporated organization, limited liability company, any governmental
     entity or any other entity of whatever nature.

          "Registration Rights Agreement" shall mean the Registration Rights
           -----------------------------
     Agreement dated as of the date hereof between the Company and the Investor,
     as it may be amended, supplemented or otherwise modified from time to time.

                                       4
<PAGE>

          "Representatives" shall mean, with respect to any Person, such
           ---------------
     Person's directors, officers, employees, agents and other representatives
     acting in such capacity.

          "Restricted Parties" shall mean each of the Investor, Global Crossing
           ------------------
     and their respective Subsidiaries.

          "SEC" shall mean the United States Securities and Exchange Commission.
           ---

          "Securities Act" shall mean the Securities Act of 1933, as amended,
           --------------
     and the rules and regulations promulgated thereunder.

          "Subsidiary" shall mean, as to any Person, a corporation, partnership,
           ----------
     limited liability company, joint venture or other entity of which shares of
     stock or other ownership interests having ordinary voting power (other than
     stock or such other ownership interests having such power only by reason of
     the happening of a contingency) to elect a majority of the board of
     directors or other managers of such corporation, partnership or other
     entity are at the time owned, directly or indirectly through one or more
     intermediaries (including, without limitation, other Subsidiaries), or
     both, by such Person.

          "Third Party Tender Offer" shall mean a bona fide public offer subject
           ------------------------
     to the provisions of Regulation 14D under the Exchange Act, by a Person
     (which is not made by and does not include any of a Restricted Party or any
     Affiliate of any of them or any 13D Group that includes a Restricted Party
     or any Affiliate of them) to purchase or exchange for cash or other
     consideration any Voting Stock of the Company and which consists of an
     offer to acquire 30% or more of the then Total Current Voting Power of the
     Company, as the case may be.

          "13D Group" means any "group" (within the meaning of Section 13(d) of
           ---------
     the Exchange Act) formed for the purpose of acquiring, holding, voting or
     disposing of Voting Stock of the Company.

          "Total Current Voting Power" shall mean, with respect to any
           --------------------------
     corporation, the total number of votes which may be cast in the election of
     members of the board of directors of the corporation if all securities
     entitled to vote in the election of such directors (excluding shares of
     preferred stock that are entitled to elect directors only upon the
     occurrence of customary events of default) are present and voted.

          "Transfer" shall have the meaning set forth in Section 4.2.
           --------

          "Voting Stock" shall mean, with respect to a Person, shares of common
           ------------
     stock and any other securities of such Person having the ordinary power to
     vote in the election of members of the board of directors of such Person.

                                       5
<PAGE>

                                  ARTICLE II

                         CORPORATE GOVERNANCE; VOTING

          Section 2.1  Board of Directors.
                       ------------------

          (a)  At the Effective Time the Company shall appoint one designee of
the Investor as a director. Subject to Section 2.1(d), in connection with each
election of directors of the Company on and after the Effective Time, the
Investor shall have the right to designate for election to the board of
directors of the Company one nominee (the "Designee"), provided that the person
designated as the Designee will be subject to approval by the board of directors
of the Company and the governance or other nominating committee thereof, which
approval will not be withheld unless, based on advice of counsel, such approval
would be inconsistent with the fiduciary duties of the members of the board of
directors of the Company. The Designee elected or appointed to the board of
directors of the Company shall continue to serve as a director of the Company
until the next election of directors.

          (b)  For so long as the Investor is entitled to designate a nominee
for election as a director pursuant to this Section 2.1, in connection with each
election of directors the Company shall nominate the Designee for election as a
director as part of the management slate that is included in the proxy statement
(or consent solicitation or similar document) of the Company relating to the
election of directors, and shall provide the highest level of support for the
election of the Designee as it provides to any other person standing for
election as a director of the Company as part of the Company's management slate.

          (c)  Subject to applicable law, in the event that the Designee on the
board of directors of the Company shall cease to serve as a director for any
reason (other than the failure of the shareholders of the Company to elect such
person as director), the Investor shall have the right to appoint another
Designee to fill the vacancy resulting therefrom.

          (d)  The rights of the Investor pursuant to this Section 2.1 shall
terminate if at any time the Restricted Parties Beneficially Own in the
aggregate less than 10% of the Total Current Voting Power of the Company, and
the Designee shall resign from the board of directors of the Company, upon
request by the board of directors of the Company at any time after the
Restricted Parties Beneficially Own in the aggregate less than 10% of the Total
Current Voting Power of the Company.

          Section 2.2  Executive Committee. As long as the Investor has the
                       -------------------
right to designate a nominee to the board of directors of the Company, if the
Company forms an executive committee (or a committee having substantially all
the general powers normally held by the board of directors of a company), such
committee shall at all times include the Designee of the Investor.

          Section 2.3  Reimbursement of Expenses; Attendance at Board Meetings;
                       --------------------------------------------------------
Indemnification. The Company will reimburse each Designee that serves as a
---------------
director for his or her costs and expenses (including travel expenses) incurred
in connection with such director's attendance at meetings of the Board or any
committee of the Board upon which such director

                                       6
<PAGE>

serves if and to the same extent as the other non-management directors of the
Company. The Company shall indemnify each Designee to the same extent it
indemnifies its other directors pursuant to its organizational documents and
applicable law.

          Section 2.4  Voting. During the Investor Standstill Period (and during
                       ------
the Investor Standstill Period only), the Investor and all Restricted Parties
shall vote (or execute a written consent in lieu of) in each shareholder vote
(or written consent in lieu of) in all matters submitted to a shareholder vote,
at the election of the Investor or such Restricted Party either (x) in the
manner recommended by the board of directors of the Company (including the
management slate of nominees for election of directors) or (y) in the same
proportion as all votes cast by Disinterested Shareholders; provided, that this
                                                            --------
Section 2.4 shall not apply to any shareholder vote relating to a Change of
Control of the Company or a proposed Change of Control of the Company
(including, without limitation, any transaction that would result in a Change of
Control of the Company) and the Investor and all other Restricted Parties shall
have the right to vote in their discretion on such matters.

                                  ARTICLE III

                                   COVENANTS

          Section 3.1  Section 203 of the DGCL. In accordance with Section 203
                       -----------------------
of the DGCL ("Section 203"), the board of directors of the Company, prior to the
execution of the Merger Agreement, approved (i) the execution and delivery by
the Company of the Merger Agreement and the consummation of the Merger (as
defined in the Merger Agreement) and the other transactions contemplated by the
Merger Agreement and (ii) any transaction that results in any "affiliate" (as
defined in Section 203) or "associate" (as defined in Section 203) of the
Investor becoming an "interested stockholder" (as defined in Section 203) by
virtue of the Investor or its affiliate or associate owning any shares of the
Company acquired pursuant to the Merger Agreement or after the Effective Time in
compliance with this Agreement. Accordingly, the ownership by the Investor, its
affiliates and its associates of shares of the Company acquired pursuant to the
Merger Agreement or after the Effective Time in compliance with this Agreement
will not result in the provisions of Section 203 applicable to a "business
combination" (as defined in Section 203) between such persons (or their
affiliates or associates) and the Company.

          Section 3.2  Company Rights Agreement. At or before the Effective
                       ------------------------
Time, the Company shall have amended the Exodus Rights Plan to provide for a
triggering threshold with respect to the beneficial ownership by the Restricted
Parties of Company Common Stock substantially as set forth in the form of
Amendment No. 2 to the Rights Agreement attached as an exhibit to the Merger
Agreement. So long as the Restricted Parties Beneficially Own 10% or more of the
Outstanding Company Common Stock, the Company shall not amend the Exodus Rights
Plan, adopt any stockholder rights plan, amend any of its organizational
documents, adopt any other plan or arrangement or take any other action that
would impose additional limitations on (including, without limitation, any
adverse consequences resulting from) any of the Restricted

                                       7
<PAGE>

Parties' acquiring additional shares of Voting Stock of the Company or taking
any actions specified in Section 4.1 hereof beyond the limitations imposed at
the Effective Time pursuant to this Agreement or the Exodus Rights Plan;
provided, that in the event that the Investor Standstill Limit is reduced
--------
pursuant to Section 4.3, then a corresponding amendment may be made to the
Exodus Rights Plan.

          Section 3.3  Indemnification.
                       ---------------

          (a)  The Company shall indemnify and hold harmless (x) each Restricted
Party and each of their respective Affiliates and any controlling person of any
of the foregoing, (y) each of the foregoing's respective directors, officers,
employees and agents and (z) each of the heirs, executors, successors and
assigns of any of the foregoing from and against any and all damages, claims,
losses, expenses, costs, obligations and liabilities including, without limiting
the generality of the foregoing, liabilities for all reasonable attorneys' fees
and expenses (including attorney and expert fees and expenses incurred to
enforce the terms of this Agreement) (collectively, "Losses and Expenses"),
suffered or incurred by any such indemnified person or entity to the extent
arising from, relating to or otherwise in respect of, any governmental or other
third party claim against such indemnified person that arises from, relates to
or is otherwise in respect of (x) any such Person being deemed to be a
controlling person of the Company or any of its Subsidiaries for purposes of
federal, state or other securities law or (y) any act or omission of the Company
or its Subsidiaries (except, in either case, to the extent such Losses and
Expenses arise from the acts or omissions of such Restricted Party or its
Affiliates). Notwithstanding the foregoing, Losses and Expenses shall not
include any special or consequential damages except to the extent such special
or consequential damages are part of any governmental or other third party
claims against the indemnified party. The indemnification provided by the
Company pursuant to this Section 3.3 is separate from and in addition to any
other indemnification by the Company to which the indemnified person may be
entitled.

          (b)  With respect to third-party claims, all claims for
indemnification by an indemnified person (an "Indemnified Party") hereunder
shall be asserted and resolved as set forth in this Section 3.3. In the event
that any written claim or demand for which the Company would be liable to any
Indemnified Party hereunder is asserted against or sought to be collected from
any Indemnified Party by a third party, such Indemnified Party shall promptly
notify the Company in writing of such claim or demand (the "Claim Notice"),
provided that the failure to promptly provide a Claim Notice will not affect an
Indemnified Party's right to indemnification except to the extent such failure
materially prejudices the Company. The Company shall have twenty (20) days from
the date of receipt of the Claim Notice (the "Notice Period") to notify the
Indemnified Party (i) whether or not the Company disputes the liability of the
Company to the Indemnified Party hereunder with respect to such claim or demand
and (ii) whether or not it desires to defend the Indemnified Party against such
claim or demand. All costs and expenses incurred by the Company in defending
such claim or demand shall be a liability of, and shall be paid by, the Company.
Except as hereinafter provided, in the event that the Company notifies the
Indemnified Party within the Notice Period that it desires to defend the
Indemnified Party against such claim or demand, the Company shall have the right
to defend the Indemnified Party by appropriate proceedings and shall have the
sole power to direct and control such defense; provided, however, that (A) if
the Indemnified Party reasonably determines that there may be a

                                       8
<PAGE>

conflict between the positions of the Company and of the Indemnified Party in
conducting the defense of such claim or that there may be legal defenses
available to such Indemnified Party different from or in addition to those
available to the Company, then counsel for the Indemnified Party shall be
entitled to conduct the defense at the expense of the Company to the extent
reasonably determined by such counsel to be necessary to protect the interests
of the Indemnified Party and (B) in any event, the Indemnified Party shall be
entitled at its cost and expense to have counsel chosen by such Indemnified
Party participate in, but not conduct, the defense. The Indemnified Party shall
not settle a claim or demand without the consent of the Company. The Company
shall not, without the prior written consent of the Indemnified Party, settle,
compromise or offer to settle or compromise any such claim or demand on a basis
which would result in the imposition of a consent order, injunction or decree
which would restrict the future activity or conduct of the Indemnified Party or
any Subsidiary or Affiliate thereof or if such settlement or compromise does not
include an unconditional release of the Indemnified Party for any liability
arising out of such claim or demand. If the Company elects not to defend the
Indemnified Party against such claim or demand, whether by not giving the
Indemnified Party timely notice as provided above or otherwise, then the amount
of any such claim or demand or, if the same be contested by the Indemnified
Party, that portion thereof as to which such defense is unsuccessful (and the
reasonable costs and expenses pertaining to such defense) shall be the liability
of the Company hereunder. The Indemnified Party and Company shall each render to
each other such assistance as may reasonably be requested in order to insure the
proper and adequate defense of any such claim or proceeding.

          (c)  If the indemnification provided for in this Section 3.3 is
unavailable or insufficient to hold harmless an Indemnified Party under this
Section 3.3, then the Company, in lieu of indemnifying such Indemnified Party,
shall contribute to the amount paid or payable by such Indemnified Party as a
result of the Losses and Expenses referred to in this Section 3.3: (i) in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Indemnified Party from the matter giving rise to indemnification
hereunder or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Company and the Indemnified Party in connection with the matter
that resulted in such Losses and Expenses, as well as any other relevant
equitable considerations. Relative fault shall be determined by reference to,
among other things, the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent the matter giving rise to such
Losses and Expenses.

          (d)  The parties agree that it would not be just and equitable if
contributions pursuant to Section 3.3(c) were to be determined by pro rata
allocation or by any other method of allocation which does not take into account
the equitable considerations referred to in the first sentence of Section
3.3(c). The amount paid by any indemnified party as a result of the losses,
claims, damages or liabilities, or actions in respect thereof, referred to in
the first sentence of Section 3.3(c) shall be deemed to include any legal or
other expenses reasonably incurred by such Indemnified Party in connection with
investigation, preparing to defend or defending against any claim which is the
subject of Section 3.3.

                                       9
<PAGE>

                                  ARTICLE IV

                             STANDSTILL AGREEMENTS

          Section 4.1  Standstill Agreement of the Investor.
                       ------------------------------------

          (a)  During the Investor Standstill Period (and during the Investor
Standstill Period only), no Restricted Party will, directly or indirectly, nor
will it authorize or direct any of its Representatives to, in each case unless
specifically requested to do so in writing in advance by the board of directors
of the Company:

               (i)   offer, seek or propose to acquire, ownership of any assets
     or businesses of the Company or any of its Subsidiaries having a fair
     market value in excess of 10% of the fair market value of all of the
     Company's and its Subsidiaries' assets, or any rights or options to acquire
     any such ownership (including from a third party);

               (ii)  acquire or agree, offer, seek or propose to acquire, or
     cause to be acquired, Beneficial Ownership of any Voting Stock of the
     Company or any of its Subsidiaries, or any options, warrants or other
     rights (including, without limitation, any convertible or exchangeable
     securities) to acquire any such Voting Stock of the Company; provided,
                                                                  --------
     however, that the Restricted Parties may acquire or agree, offer, seek or
     -------
     propose to acquire, or cause to be acquired, shares of Voting Stock of the
     Company or options, warrants or other rights (or any convertible or
     exchangeable securities) to acquire any such Voting Stock of the Company if
     such acquisition would not increase the Restricted Parties' aggregate
     Beneficial Ownership of shares of Voting Stock of the Company to more than
     the Investor Standstill Limit;

               (iii) make, or in any way participate in, any "solicitation" of
     "proxies" (as such terms are used in the proxy rules of the SEC) with
     respect to the voting of any securities of the Company or any of its
     Subsidiaries; provided, that the limitation contained in this clause (iii)
     shall not apply to any proposal relating to a Change of Control of the
     Company to be voted on by the Company's shareholders that is not instituted
     or proposed by any Restricted Party or any Affiliate of a Restricted Party
     or any 13D Group of which any Restricted Party or any Affiliate of a
     Restricted Party is a member;

               (iv)  deposit any securities of the Company or any of its
     Subsidiaries in a voting trust or subject any such securities to any
     arrangement or agreement with any Person (other than one or more Restricted
     Parties);

               (v)   form, join, or in any way become a member of a 13D Group
     with respect to any voting securities of the Company or any of its
     Subsidiaries (other than a "group" consisting solely of Restricted
     Parties);

               (vi)  seek to propose or propose, whether alone or in concert
     with others, any tender offer, exchange offer, merger, business
     combination, restructuring,

                                      10
<PAGE>

     liquidation, recapitalization or similar transaction involving the Company
     or any of its Subsidiaries;

               (vii)  nominate any person as a director of the Company who is
     not nominated by the then incumbent directors, or propose any matter to be
     voted upon by the stockholders of the Company; provided that the Investor
                                                    --------
     may nominate a director in accordance with Section 2.1;

               (viii) solicit, initiate, encourage or knowingly or intentionally
     facilitate the taking of any action by any Affiliate of a Restricted Party
     (that is not itself a Restricted Party) that would be prohibited by this
     Section 4.1 if that Affiliate were a Restricted Party; or

               (ix)   publicly announce or disclose any intention, plan or
     arrangement inconsistent with the foregoing.

          (b)  In addition, during the Investor Standstill Period (and only
during the Investor Standstill Period), no Restricted Party will, nor will they
authorize or direct any of their respective Representatives to, take any action
that could require the Company to make a public announcement regarding any of
the matters prohibited by Section 4.1(a).

          (c)  If, at any time during the Investor Standstill Period, (i) any
Person other than a Restricted Party or any Affiliate thereof or any 13D Group
of which any Restricted Party is a member has made any inquiry, proposal or
offer relating to a Change of Control of the Company which has not been rejected
by the Company's board of directors or (ii) the Company's board of directors has
determined to pursue a potential Change of Control of the Company (or a
transaction of the type that, if consummated, would result in a Change of
Control of the Company) and such board of directors has not determined to stop
pursuing such Change of Control of the Company, then, for so long as such
condition continues to apply, the limitation on the actions described in clauses
(a)(ii), (a)(iii) and (a)(vi) above shall not be applicable to the Restricted
Parties (but all other provisions of this Agreement will, subject to Section
4.1(d), continue to apply). If, at any time during the Investor Standstill
Period, the board of directors of the Company has engaged in any discussions or
negotiations with, or provided any information to, any Person other than a
Restricted Party or any Affiliate thereof or any 13D Group of which any
Restricted Party is a member with respect to a potential Change of Control of
the Company (or a transaction of the type that, if consummated, would result in
a Change of Control of the Company) and the board of directors of the Company
has not determined to terminate all such discussions, negotiations and provision
of information, then, for so long as such condition continues to apply, the
Investor may make a private offer to effect a Change of Control of the Company
to the board of directors of the Company that the Investor does not publicly
disclose (but the Investor shall remain subject to all other provisions of this
Agreement, subject to Section 4.1(d)).

          (d)  Anything in this Section 4.1 to the contrary notwithstanding,
this Section 4.1 shall not prohibit or restrict any of the following: (x)
actions taken by the Investor's Designee on the board of directors of the
Company in such capacity, (y) the voting of the Restricted Parties' Voting Stock
in accordance with Section 2.4 or (z) any disclosure pursuant to

                                      11
<PAGE>

Section 13(d) of the Exchange Act which a Restricted Party reasonably believes,
based on the advice of outside counsel, is required in connection with any
action taken by a Restricted Party pursuant to Section 4.1(c).

          Section 4.2  Transfer Restrictions.
                       ---------------------

          (a)  The Restricted Parties shall not, directly or indirectly sell,
transfer or otherwise dispose of (collectively, "Transfer") any shares of Common
                                                 --------
Stock Beneficially Owned by such Persons during the period beginning at the
Effective Time and ending on the one year anniversary of the Effective Time,
except for Transfers: (i) to Restricted Parties that deliver a written
instrument to the Company in form and substance reasonably satisfactory to the
Company confirming that they are subject to the obligations under this
Agreement, (ii) which have been consented to in writing by the Company, (iii)
pursuant to a Third Party Tender Offer that (A) is recommended by the board of
directors of the Company or (B) is not effectively prohibited from closing
pursuant to the Exodus Rights Plan or any successor rights plan (whether or not
no such rights plan is in effect, the rights thereunder have been redeemed, a
court of competent jurisdiction has declared such rights plan invalid or
otherwise), (iv) pursuant to a merger, consolidation or reorganization to which
the Company is a party, or (v) pursuant to bona fide "cashless collar" hedging
or similar transactions or other hedging transactions pursuant to which the
Restricted Party maintains a meaningful interest in any increase in value of the
underlying securities with or arranged or placed or underwritten by nationally
recognized investment banking firms or other nationally recognized financial
institutions ("Permitted Hedges"), provided that (x) Permitted Hedges under this
               ----------------    --------
Section 4.2(a) may be effected only after the expiration of six months after the
Effective Time and, if effected at a time when a Designee of the Investor serves
as a member of the board of directors of the Company, or within 90 days after
the Investor ceases to have a Designee serving on the board of directors of the
Company, only during the window periods during which trading by the Company's
directors and officers is otherwise permitted, and (y) the number of shares
hedged, together with the number of shares hedged within the three preceding
months, shall not exceed 1% of the shares of Common Stock outstanding as shown
on the most recent report or statement published by the Company.

          (b)  The Restricted Parties shall not Transfer any shares of Common
Stock Beneficially Owned by such Persons during the period beginning on the one
year anniversary of the Effective Time and ending on the five year anniversary
of the Effective Time, except for Transfers: (i) to Restricted Parties that
deliver a written instrument to the Company in form and substance reasonably
satisfactory to the Company confirming that they are subject to the obligations
under this Agreement, (ii) which have been consented to in writing by the
Company, (iii) pursuant to a Third Party Tender Offer that (A) is recommended by
the board of directors of the Company or (B) is not effectively prohibited from
closing pursuant to the Exodus Rights Plan or any successor rights plan (whether
or not no such rights plan is in effect, the rights thereunder have been
redeemed, a court of competent jurisdiction has declared such rights plan
invalid or otherwise), (iv) pursuant to a merger, consolidation or
reorganization to which the Company is a party, (v) in a bona fide underwritten
public offering or other sale pursuant to the exercise of rights granted in the
Registration Rights Agreement, (vi) pursuant to Rule 144 of the Securities Act
or pursuant to a privately negotiated transaction or (vii) pursuant to Permitted
Hedges; provided that any Transfers made pursuant to clause (vi) or (vii) at a
        --------
time when a Designee of the Investor serves as a member of the board of
directors of the Company, or within

                                      12
<PAGE>

90 days after the Investor ceases to have a Designee serving on the board of
directors of the Company, may be made only during the window periods during
which trading by the Company's directors and officers is otherwise permitted;
provided, further, that, in the case of any Transfer pursuant to clause (v) or
--------  -------
(vi), such Transfer does not result in, to the knowledge of the Restricted
Parties after reasonable inquiry, any other Person acquiring, after giving
effect to such Transfer, Beneficial Ownership, individually or in the aggregate
with such Person's Affiliates, of more than 5% of the Total Current Voting Power
of the Company; provided, further, that, following the three year anniversary of
                --------  -------
the Effective Time, the obligations of the Investor under this Section 4.2(b)
shall terminate immediately at such time as the Restricted Parties hold less
than 10% of the Total Current Voting Power of the Company.

          (c)  Each Restricted Party understands and acknowledges that the
shares of Common Stock issued to the Investor pursuant to the Merger Agreement
are "restricted securities" within the meaning of the federal securities laws.
If any Restricted Party decides to dispose of any of the Common Stock, each
Restricted Party understands and agrees that it may do so only pursuant to an
effective registration statement under the Securities Act or pursuant to an
exemption from registration under the Securities Act, and only in compliance
with all other securities laws, including restrictions imposed by law on trading
while in the possession of material non-public information. Each Restricted
Party agrees to the imprinting, so long as appropriate, of substantially the
following legends on certificates representing any of the securities referenced
in the preceding sentence:

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
     "SECURITIES ACT"), OR ANY STATE SECURITIES LAW, AND SUCH
     SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE
     DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
     STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION
     NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
     ACT AND APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
     REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF A
     STOCKHOLDER AGREEMENT, DATED AS OF SEPTEMBER 28, 2000, AMONG THE
     COMPANY, GLOBAL CROSSING LTD. AND GLOBAL CROSSING GLOBALCENTER
     HOLDINGS INC.

          The legend set forth above shall be removed if and when (i) the
securities represented by such certificate are disposed of pursuant to an
effective registration statement under the Securities Act or (ii) the Investor
delivers to the Company an opinion of counsel reasonably acceptable to the
Company to the effect that such legends are no longer necessary.

          Section 4.3  Adjustments to Investor Standstill Limit. In the event
                       ----------------------------------------
that a Restricted Party Transfers legal and beneficial ownership of any Voting
Stock of the Company the effect of which Transfer is that the percentage of
Beneficial Ownership by Restricted Parties of the Total Current Voting Power of
the Company (such percentage plus 1%, the "Investor Downward Revised
                                           -------------------------
Percentage") is less than the Investor Standstill Limit in effect at such time,
----------
then the Investor Downward Revised Percentage shall thereafter be deemed to be
the Investor

                                      13
<PAGE>

Standstill Limit (unless and until further adjusted in accordance with this
Agreement). The Company will promptly provide the Investor with a certificate
setting forth the Investor Downward Revised Percentage and the calculation
thereof.

          Section 4.4  Certain Permitted Transactions and Communications.
                       -------------------------------------------------
Notwithstanding the foregoing, this Agreement shall not prohibit (i) the
acquisition or holding of securities or rights in the ordinary course of
business by any employee benefit plan whose trustees, investment managers or
similar advisors are not Affiliates of any Restricted Party, (ii) the
consummation of any transaction expressly provided for in the Merger Agreement
or (iii) officers and employees of the Restricted Parties from communicating
with officers of the Company or its Affiliates on matters related to or governed
by the Merger Agreement or other operational matters, or the Restricted Parties
from communicating with the board of directors of the Company, the Chairman of
such board of directors, the Chief Executive Officer or the Chief Financial
Officer of the Company, so long as such communication is conveyed in confidence,
does not require public disclosure by the Restricted Parties or by the Company,
and is not intended to (A) elicit, and, in the reasonable belief of the
Restricted Party making such communication, does not require the issuance of, a
public response by the Company or (B) otherwise circumvent the provisions of
Section 4.2.

          Section 4.5  Certain Actions Deemed Transfers. Any direct or indirect
                       --------------------------------
sale or other transfer by a Restricted Party of a Person that owns Voting Stock
of the Company shall be deemed a Transfer of the Voting Stock held by such
Person unless such transfer (together with any related transfers by other
Restricted Parties) consists of the direct or indirect sale or other transfer
(x) a majority of the consolidated assets of Global Crossing (whether effected
pursuant to a stock or asset sale) measured by value or (y) all or substantially
all of the North American operations of Global Crossing. In the event of any
deemed Transfer described in clause (x) or (y) of this Section 4.5 involving the
deemed Transfer of more than 15% of the Outstanding Company Common Stock, then
the Company shall take all necessary action to amend the Exodus Rights Plan (or
any successor rights plan) to provide that the provisions thereof currently
applicable to Global Crossing shall thereafter be applicable to the holder of
the Common Stock deemed Transferred (and that such provisions shall no longer be
applicable to Global Crossing).

          Section 4.6  No Other Transfer Restrictions. The restrictions on
                       ------------------------------
transfer contained in this Article IV shall be the only transfer restrictions
imposed by the Company on the transfer of Common Stock held by Restricted
Parties and the rights to transfer Common Stock granted to the Restricted
Parties hereunder shall not be modified by any internal policies or procedures
of the Company.

                                   ARTICLE V

                                 Miscellaneous

          Section 5.1  Notices. All notices and other communications hereunder
                       -------
shall be in writing and shall be deemed to have been duly given, if delivered
personally, by telecopier or sent by overnight courier as follows:

                                      14
<PAGE>

          (a)  if to Company, to:

               Exodus Communications, Inc.
               2831 Mission College Blvd.
               Attention:  General Counsel
               Facsimile No.:  (408) 346-2201

               with a copy to:

               Fenwick & West LLP
               Two Palo Alto Square
               Palo Alto, CA 94306
               Attention:  David W. Healy
               Facsimile No.:  (650) 496-1417

          (b)  if to the Investor, to:

               Global Crossing Ltd.
               360 N. Crescent Drive
               Beverly Hills, CA 90210
               Attention:  General Counsel
               Facsimile No.:  (310) 385-3700

               with a copy to:

               Simpson Thacher & Bartlett
               3373 Hillview Avenue
               Suite 250
               Palo Alto, CA 94304
               Attention:  Richard Capelouto
               Facsimile No.:  (650) 251-5002

or to such other address or addresses as shall be designated in writing. All
notices shall be effective when received.

          Section 5.2  Entire Agreement; Amendment. This Agreement sets forth
                       ---------------------------
the entire agreement between the parties hereto with respect to the matters
subject to this Agreement. Any provision of this Agreement may be amended or
modified in whole or in part at any time by an agreement in writing between the
parties hereto executed in the same manner as this Agreement. No failure on the
part of any party to exercise, and no delay in exercising, any right shall
operate as a waiver thereof nor shall any single or partial exercise by any
party of any right preclude any other or future exercise thereof or the exercise
of any other right.

          Section 5.3  Severability. In the event that any one or more of the
                       ------------
provisions contained in this Agreement or in any other instrument referred to
herein, shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement or any other such instrument.

                                      15
<PAGE>

          Section 5.4  Counterparts. This Agreement may be executed in one or
                       ------------
more counterparts, each of which shall be deemed to constitute an original, but
all of which together shall constitute one and the same document.

          Section 5.5  Governing Law; Jurisdiction; Waiver of Jury. This
                       -------------------------------------------
Agreement shall be governed and construed in accordance with the laws of the
State of Delaware applicable to contracts made and to be performed in the State
of Delaware. Each party hereby submits to the exclusive jurisdiction of the
Court of Chancery or other courts of the State of Delaware in any matter based
upon or arising out of this Agreement or the matters contemplated herein. The
parties hereto waive all right to trial by jury in any action, suit or
proceeding brought to enforce or defend any rights or remedies under this
Agreement.

          Section 5.6  Successors and Assigns; Third Party Beneficiaries. The
                       -------------------------------------------------
Investor and any other Restricted Party may not assign any of its rights or
delegate any of its duties under this Agreement; provided that the Investor may
                                                 --------
assign its rights under this Agreement to another Restricted Party that confirms
in writing that it is bound by the terms of this Agreement. The Company may not
assign any of its rights or delegate any of its duties under this Agreement
without the prior written consent of the Investor. Any purported assignment in
violation of this Section shall be void. Nothing expressed or mentioned in this
Agreement is intended or shall be construed to give any Person other than the
Restricted Parties (who shall be third party beneficiaries of this Agreement
entitled to the benefit of, and to enforce, its terms) and the Company and their
respective successors, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision herein contained. This Agreement and
all conditions and provisions hereof are intended to be for the sole and
exclusive benefit of the Restricted Parties and the Company and their respective
successors, and for the benefit of no other Person. No purchaser of Common Stock
from a Restricted Party in accordance with the terms of this Agreement (other
than another Restricted Party) shall be deemed to be a successor or assignee by
reason merely of such purchase. For the avoidance of doubt, the parties agree
that no parent entity of Global Crossing shall be deemed to be a Restricted
Party for any purposes hereunder.

          Section 5.7  Global Crossing. Global Crossing and each other
                       ---------------
Restricted Party shall cause all of its Subsidiaries to comply with the terms of
this Agreement.

          Section 5.8  Effectiveness of Agreement; Termination. This Agreement
                       ---------------------------------------
shall not become effective until the Effective Time, at which time this
Agreement shall take full force and effect. If the Effective Time does not occur
prior to the termination of the Merger Agreement in accordance with its terms,
then this Agreement shall terminate and be of no force and effect immediately
upon termination of the Merger Agreement.

          Section 5.9  Specific Performance. The parties hereto agree that
                       --------------------
irreparable damage would occur in the event any provision of this Agreement was
not performed in accordance with the terms hereof and that the parties shall be
entitled to an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions of this Agreement in
addition to any other remedy to which they are entitled at law or in equity.

                                      16
<PAGE>

          Section 5.10  Headings, Captions and Table of Contents. The section
                        ----------------------------------------
headings, captions and table of contents contained in this Agreement are for
reference purposes only, are not part of this Agreement and shall not affect the
meaning or interpretation of this Agreement.

     IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto
or by their respective duly authorized Representatives, all as of the date first
above written.

                                        EXODUS COMMUNICATIONS, INC.

                                           /s/ Ellen M. Hancock
                                        By:__________________________________
                                           Ellen M. Hancock
                                           Chief Executive Officer and Chairman

                                        GLOBAL CROSSING LTD.

                                           /s/ Leo J. Hindery, Jr.
                                        By:__________________________________
                                           Leo J. Hindery, Jr.
                                           Chief Executive Officer

                                        GLOBAL CROSSING GLOBALCENTER HOLDINGS
                                        INC.

                                           /s/ Leo J. Hindery, Jr.
                                        By:__________________________________
                                           Chief Executive Officer

                                      17

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