Document:

VIZACOM INC.
                             Glenpointe Center East
                          300 Frank W. Burr Boulevard
                           Teaneck, New Jersey 07666
                              Tel: (201) 928-1001
                           Facsimile: (201) 928-1003

                                 June 16, 2000

                        RELEASE AND SEPARATION AGREEMENT
                        --------------------------------

Dear Mr. Schulman:

This letter sets forth our proposed  agreement  regarding your  separation  from
employment with Vizacom Inc. (the "Company"),  which would,  among other things,
provides you with  additional  monetary  benefits in return for your release of,
and promise not to sue on, any claims you may have  against the Company  arising
out of that  employment,  including  any  claims  you might  have  under the Age
Discrimination  in  Employment  Act ("ADEA"),  29 U.S.C.  621 et seq. You should
consider the terms of this agreement  carefully,  including  obtaining review by
your own attorney.  You will have at least until July 7, 2000 to decide  whether
to accept this agreement.  To indicate your acceptance of our proposal, you need
only sign and date this document, have it witnessed, and return it to me.

1.   Separation.  By  mutual  agreement,  your  employment with the Company will
     end effective June 16, 2000 (the "Separation  Date").  Effective such date,
     you will be deemed to have resigned as an Executive  Vice  President of the
     Company  and  of  any  subsidiary  of  the  Company.  Under  the  Company's
     established policies, you are not entitled to receive any severance benefit
     but you will be reimbursed for all legitimate business expenses incurred by
     you  prior  to  the  Separation  Date  upon   presentation  of  appropriate
     documentation therefor. However, by this letter the Company is offering you
     a special separation allowance.

2.   Special   Separation   Allowance.  In  return  for  you  entering  into the
     agreement  set forth in this  letter,  you will be provided  with a special
     allowance  ("Special  Allowance").  The Special  Allowance will provide you
     with a payment equal to your base salary  ($225,000 per annum),  payable in
     accordance with the Company's normal payroll practice,  for the period (the
     "Separation Period") equal to the shorter of: (a) six months following your
     Separation  Date;  or (b)  until a bona fide  offer to you of a  comparable
     position   (i.e.   Vice  President  or  higher)   in    either   the    New
     York  Metropolitan  area  or  California  or  a  position  (whether  as   a
     consultant   or   employee) at   a  comparable salary;  or  (c)  until your
     acceptance,  or the commencement,  of  your  performance of any duties with
     respect  to  any employment or consulting position with any third party. In
     addition,  during  the  Separation  Period,  the Company will (i) except as
     provided below, pay you  a monthly  stipend of  $1,250.00 to be used to pay
     the rent on your New York City  apartment;  and  (ii)  continue health care
     coverage for you under the Company's plans, subject to applicable

                                       1

<PAGE>

     employee  contributions.  Further,  in  the event that after the Separation
     Period, you do  not  have  a  new  job  or  your  new job is not in the New
     York  City  Metropolitan  area,  then  the Company  agrees  to pay the base
     rent of your current  apartment  located at 160 West 66th Street, Apt. 33J,
     New  York,  NY, 10023, until March 23, 2001, the end of the initial  lease,
     which  rent is $4,650 per month.  You hereby agree to use your best efforts
     to  mitigate  the  above  obligation  (i.e.  sublet or be released from the
     apartment) and provide  to  the  Company  full  use of the apartment in the
     event that you vacate it.  Notwithstanding the foregoing, in the event that
     you  decide  to  return  permanently  to California prior to the end of the
     Separation Period, then the Company hereby agrees to (x) pay your base rent
     on your  apartment from  the  date  of your leaving; provided that you have
     given  the  landlord  two   weeks  notice  with  respect  to  vacating  the
     apartment;  and provided further,  that such obligation shall  not commence
     until  the first day of the next rental  period after the date hereof,  and
     once  this  obligation begins,  the monthly stipend referred to above shall
     not  be  paid  by  the Company to you; (y) provide  you  with a coach class
     airline  ticket  back to California; and (z) pay to  ship  your  automobile
     back  to California, upon  receipt  of  appropriate  documentation  showing
     the  costs  for the foregoing.

     In consideration for the foregoing Special  Allowance,  you hereby agree to
     the following  terms:  (a) any stock options  either granted or promised to
     you  by  the  Company  are  terminated   immediately   and  are  no  longer
     exercisable;  (b) no  past or  future  bonus  payments  will be paid by the
     Company to you; (c) no additional  relocation allowance will be paid by the
     Company to you; (d) you will  promptly  return to the Company any assets of
     the  Company  in your  possession;  (e) you will use your best  efforts  to
     obtain a new position as soon as possible  with as high a title and as high
     a compensation as possible; and (f) until you find a new position, you will
     make  yourself  available as a consultant  to the Company for up to one day
     per week for no additional  compensation.  In addition, in consideration of
     the payment of the Special Allowance,  you hereby agree not to solicit, any
     customer or client of the Company, its subsidiaries or its affiliates,  and
     you agree not to solicit for  employment,  or hire,  any  employees  of the
     Company or any of its subsidiaries or affiliates,  for a period of one year
     after the  Separation  Date.  Further,  you shall supply the Company within
     five (5) business days of the date hereof,  with a list of all companies or
     businesses you contacted on behalf of the Company as potential  acquisition
     or partnering candidates, and you agree not to attempt to acquire on behalf
     of yourself or any entity any such companies or businesses.

3.   Acceptance  of  Special  Allowance.  As  indicated by your signature below,
     you have  decided to accept the  Company's  offer of the Special  Allowance
     described  above. By your signature  below,  you  acknowledge  that you are
     agreeing to the terms set forth in this letter in return for the  Company's
     promise to provide you with money and/or benefits provided herein.

4.   General Release.  The  Special  Allowance  is being given to you and hereby
     is accepted by you in full and final release and  settlement of any and all
     claims, charges,  actions, liens, demands,  liabilities,  causes of action,
     complaints, suits (judicial,  administrative or otherwise); damages, debts,
     demands and  obligations of any nature,  whether past or present,  known or
     unknown,  whether in law or equity,  which you had or may now or

                                        2

<PAGE>

     hereafter have against the Company,  its subsidiaries  and affiliates,  its
     officers, directors,  and stockholders,  or anyone employed by any of them,
     or acting on  their behalf; and their successors and assigns (the "Released
     Parties") from the  beginning  of the  world to the date  hereof, including
     but  not  limited  to any  discrimination  claim based on age,  sex,  race,
     religion, color, national origin, disability, marital status, appearance or
     sexual orientation under federal, state  or  local law, rule or regulation,
     and/or  any  claim  for  wrongful termination,  defamation,  and any  other
     claim, whether in tort, contract or otherwise.

     You will be receiving a separate  letter which  explains  your rights under
     the Consolidated  Omnibus Budget  Reconciliation  Act (COBRA) as regards to
     your health insurance coverage.

5.   ADEA Release.  The  Special  Allowance  being given to you is also accepted
     by you in full and final release and  settlement of any and all claims that
     you may have under the ADEA connected with your employment with the Company
     (or  your  separation  therefrom)  arising  on or  before  the date of your
     acceptance of this agreement that is indicated below.

6.   Waiver  of  California  Civil  Code Section 1542.  You acknowledge that you
     have been advised of California  Civil  Code  Section  1542, which reads as
     follows:

          A general  release does not extend to claims  which the creditor
          does not know or suspect to  exist  in  his favor at the time of
          executing  the  release,  which  if  known  by  him   must  have
          materially  affected  his settlement with the debtor.

     You agree that you are waiving the  provisions  of Civil Code  Section 1542
     and this waiver is an essential part of this agreement.

7.   Promise  Not  To  Sue On Claims  Released.  The Special  Allowance is being
     given to you in  return  for your  promise  not to  initiate  any  court or
     judicial-type proceeding against the Company or any affiliate that involves
     any claim that you have released in  paragraphs 4 and 5 of this  agreement.
     If a court or arbitrator  determines that you have violated this release by
     suing  the  Company  or any  of its  affiliates,  officers,  directors,  or
     employees,  you  hereby  agree  that you will pay all costs and  expense of
     defending  against  the  suit  incurred  by the  Company.  Nothing  in this
     paragraph  shall be  construed  to  prevent  you from  participating  in an
     investigation or proceeding  conducted by the Equal Employment  Opportunity
     Commission.  However,  you waive your right to any monetary recovery should
     any claims on your behalf arising out of or related to your employment with
     and/or separation from employment with the Company.

8.   Consultation  With  an  Attorney.  By your signature below, you acknowledge
     that you have been advised to consult  your own attorney  prior to entering
     into this agreement and that you were afforded sufficient time to undertake
     such consultation.

9.   Future Employment.   You  will  not,  now or at any time in the future seek
     employment with the Released Parties or any one of them.
                                       3

<PAGE>

10.  References. The Company agrees that, in  response  to any request submitted
     to it  for  references  regarding  your  employment  with the Company, such
     references shall be provided in accordance with Section 12 hereof.

11.  Unemployment.    The  Company   will  not  contest  your  eligibility   for
     unemployment insurance benefits  at the end of the Separation Period if you
     have not found other employment.

12.  Non-Disparagement.   Neither   party   to   this   Agreement   shall   make
     disparagements about or in any other way attempt to disparage or impair the
     reputation  or good  name of the  other  party,  the  Company's  divisions,
     affiliates,  subsidiaries,  parents, publications or any of their officers,
     directors or employees.

13.  Confidential Information.   You  hereby  covenant and agree that during the
     course of your employment with the Company, you came into contact with, and
     had  access  to,  certain  trade  secrets or  confidential  or  proprietary
     information that is the property of the Company. Such information includes,
     but is not limited to,  proprietary  technologies,  software  programs  and
     tools, financial information,  systems files, algorithms,  file structures,
     customer lists,  supplier lists,  internal  program  structures,  marketing
     plans,  specific  strategic  undertakings,  decisions  and plans for future
     business and other  development,  all of which  information you acknowledge
     and agree is highly  confidential  and not generally  known or available to
     the  public.  You agree that you have not and will not  utilize or disclose
     any of the above  described  confidential  information  to any person(s) or
     entities for any reason or purpose whatsoever. You agree that any breach of
     this Section 13 will cause the Company  substantial and irreparable damages
     that  would not be  quantifiable  and  therefore,  in the event of any such
     breach,  in addition to other  remedies that may be available;  the Company
     shall have the right to seek specific  performance and other injunctive and
     equitable relief.

14.  Nondisclosure  Obligation.   You  acknowledge  and  agree that the terms of
     this Release and Separation  Agreement are to remain  confidential and that
     you will not discuss with any person(s)  including past, present and future
     employees  of the  Company,  the terms or  conditions  of this  Release and
     Separation  Agreement  except as may be required by law, rule or regulation
     adopted pursuant to law, court or administrative  order or decree, in or in
     connection  with testimony  given or documents  subpoenaed in a judicial or
     administrative  proceeding.  Should you be called in to testify and divulge
     the terms of this  release,  you agree to assist  the  Company in seeking a
     confidentiality order in the form sought by the Company.

15.  Non-Admission of  Liability  or  Wrongdoing.   This  agreement shall not be
     construed  in any way as an admission by the Company or you that either has
     acted  wrongfully  with  respect to each other or any other  person or that
     either has any rights whatsoever against the other.

                                       4
<PAGE>

16.  Period  of  Consideration.  By  your  signature below, you acknowledge that
     the  Company  complied  with the ADEA by  giving  you a period  of at least
     twenty-one  (21) days from the date that this  agreement was first provided
     to you to  consider  and to  decide  whether  to  accept  it.  You  further
     acknowledge  that no  representative  of the Company ever stated or implied
     that you had less than twenty-one (21) days to consider this agreement. You
     also  acknowledge  that,  to the extent  you decide to sign this  agreement
     prior to the  expiration  of the full  twenty-one  (21)  day  period,  such
     decision  was knowing and  voluntary on your part and was in no way coerced
     by the Company.  To the extent any changes were made in this agreement as a
     result of  negotiations  taking  place  after the date this  agreement  was
     provided  to you,  you and the  Company  agree that such  changes,  whether
     material or not,  did not  restart the running of the period of  twenty-one
     (21) days to consider this agreement required by the ADEA.

17.  Entire   Agreement.   This   agreement   sets  forth the  entire  agreement
     between you and the Company relating to your employment with the Company or
     your separation therefrom. By your signature below, you acknowledge that in
     entering into this agreement you have not relied upon representation,  oral
     or written, not set forth in this agreement.

18.  Right  to  Revoke  Agreement.  This  agreement will not become effective or
     enforceable for a period of seven (7) days from the date of your acceptance
     of the agreement  indicated below.  During this seven day period,  you have
     the right to change your decision to accept the Special  Allowance that has
     been  offered to you and to revoke  this  agreement.  During this seven day
     period,  you will not  receive  any monies or  benefits  which you would be
     entitled to solely as a result of this agreement.

19.  Governing Law;   Arbitration.  You  acknowledge  that  you were employed in
     the State of New Jersey and that this  agreement  shall be  governed by and
     construed  in  accordance  with  the  laws  of the  State  of  New  Jersey,
     regardless of applicable  conflicts of law principles.  Any dispute between
     the  parties,  including  but  not  limited  to  those  pertaining  to  the
     information,  validity,  interpretation,  effect or alleged  breach of this
     agreement  ("Arbitration  Dispute")  will be  submitted to  arbitration  in
     northern  New  Jersey  before  an  experienced  employment  arbitrator  and
     selected  in  accordance  with  the  rules  of  the  American   Arbitration
     Association  labor  tribunal.  Each  party  shall  pay the  fees  of  their
     respective  attorneys,  the  expenses  of  their  witnesses  and any  other
     expenses  connected  with  presenting  their  claim.  Other  costs  of  the
     arbitration,  including  fees  of the  arbitrator,  cost of any  record  or
     transcript  of the  arbitration,  administrative  fees,  and other fees and
     costs shall be borne equally by the parties.

20.  Changes  After  the  Date  Hereof.   It  is  understood  and  agreed by all
     parties  hereto  that  the  facts  and  respective  assumptions  of  law in
     contemplation  of which this  agreement is made may  hereafter  prove to be
     other than or different from those facts and assumptions now known, made or
     believed by them to be true. Each of the parties hereto  expressly  accepts
     and assumes the risk of the facts and  assumptions to be so different,  and
     the parties hereto agree that all terms of this  agreement  shall be in all
     respects  effective and not subject to termination or reclusion by any such
     difference in facts or assumptions of law.

                                       5
<PAGE>

21.  Successors and Assigns.  This agreement  shall be binding upon and inure to
     the  benefit  of  the  parties  hereto and their respective administrators,
     representatives, executors, successors and assigns.

22.  Proper Construction.  (a) The language of all parts of this agreement shall
     in all cases be construed as a whole according to its fair meaning, and not
     strictly for or against any of the parties; and

     (b)  The  paragraph   headings  used  in this agreement are intended solely
          for  convenience  of  reference  and  shall  not in any  other  manner
          amplify,  limit, modify, or otherwise be used in the interpretation of
          any of the provisions hereof.

23.  Severability.  Should  any  of the provisions of this agreement be declared
     or be  determined  to be illegal or invalid,  the validity of the remaining
     parts,  terms or provisions  shall not be affected thereby and said illegal
     or invalid  part,  term or provision  shall be deemed not be a part of this
     agreement.

24.  Counterparts.   This  agreement  may  be  executed  in  counterparts.  Each
     counterpart shall be deemed an original, and when  taken  together with the
     other signed counterpart, shall constitute one fully executed agreement.

                   [THE REMAINDER OF THIS PAGE IS LEFT BLANK]

                                       6
<PAGE>

     If the above agreement is acceptable to you,  please sign, date, and return
the original to me.

                                          Very Truly Yours,

                                          VIZACOM INC.

                                      By:  /s/ Mark E. Leininger
                                          ---------------------------------
                                          Mark E. Leininger
                                          President and CEO

I have  read the above  Release  and  Separation  Agreement,  and I  understand,
accept, and voluntarily and knowingly agree to the terms and acknowledgements it
contains.

June 19, 2000                           /s/ Rand Schulman
--------------------------              ------------------------------
Date                                    Rand Schulman

                                       7<PAGE>

                                                                    Exhibit 10.1

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

                                  GENUITY INC.

                       2000 LONG-TERM STOCK INCENTIVE PLAN

                                   ___________

                             Effective May 22, 2000

================================================================================
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

<S>                                                                    <C>
 1.  PURPOSE...........................................................  1
 2.  EFFECTIVE DATE AND TERM OF THE PLAN...............................  1
 3.  DEFINITIONS.......................................................  1
 4.  PARTICIPATION.....................................................  2
 5.  ADMINISTRATION....................................................  2
 6.  TYPES OF AWARDS...................................................  3
 7.  LIMITATIONS ON AWARDS.............................................  5
 8.  AWARD AGREEMENTS..................................................  6
 9.  PAYMENT OF AWARDS.................................................  6
10.  REVOCATION OR AMENDMENT OF AWARDS.................................  6
11.  LIMITATION ON NUMBER OF SHARES....................................  7
12.  AMENDMENT OR TERMINATION OF THE PLAN..............................  7
13.  ADJUSTMENT PROVISIONS.............................................  8
14.  NO REQUIRED SEGREGATION OF ASSETS.................................  9
15.  COSTS.............................................................  9
16.  RIGHT OF DISCHARGE RESERVED.......................................  9
17.  NATURE OF PAYMENTS................................................  9
18.  SEVERABILITY......................................................  9
19.  GOVERNING LAW.....................................................  9

</TABLE>

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Genuity Inc. 2000 Long-Term Stock Incentive Plan               Table of Contents
<PAGE>

1.   PURPOSE

     The primary purpose of the Plan is to enable the Company to achieve
     superior financial performance as reflected in the performance of the
     Common Stock and/or other key financial or operating indicators by offering
     Participants incentives to effect such results.

2.   EFFECTIVE DATE AND TERM OF THE PLAN

     The Plan became effective on May 22, 2000. Unless the Plan is terminated
     earlier in accordance with Section 12 hereof, the Plan shall remain in full
     force and effect until the close of business on the date of the Company's
     annual meeting of shareholders in the year 2010, at which time the right to
     grant Awards under the Plan shall terminate automatically unless the
     shareholders of the Company approve an extension or renewal of the Plan.

3.   DEFINITIONS

     Except where otherwise indicated, the following terms shall have the
     definitions set forth below for purposes of the Plan:

     "AWARD" means any award described in Section 6 hereof.

     "AWARD AGREEMENT" means an agreement entered into between the Company and a
     Participant, in a form determined by the Committee in its sole discretion,
     setting forth the terms and conditions applicable to the Award granted to
     the Participant.

     "BOARD" means the Board of Directors of the Company.

     "CODE" means the Internal Revenue Code of 1986, as amended, or any
     successor thereto.

     "COMMITTEE" means the Executive Compensation Committee of the Board.

     "COMMON STOCK" means the Class A common stock of the Company, including
     both treasury shares and authorized but unissued shares, or any security of
     the Company issued in substitution or exchange therefor or in lieu thereof.

     "COMPANY" means Genuity Inc.

     "EMPLOYEE" means an individual who is employed by the Company or a Related
     Entity.

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 1
<PAGE>

     "FAIR MARKET VALUE" means the average of the high and low sales prices of
     the Shares on Nasdaq (or any other reporting system or market selected by
     the Committee) on the relevant date, or if no sale of Shares is reported
     for that date, on the date or dates that the Committee determines, in its
     sole discretion, to be appropriate for purposes of the valuation.

     "GRANT PRICE" means the price per Share at which Shares may be purchased
     under a stock option and the price per Share used as the base price for
     measuring the appreciation, if any, under a stock appreciation right.
     Except as provided in Section 6(a), below, the Grant Price shall not be
     less than the Fair Market Value of the Shares covered by the stock option
     or stock appreciation right on the date as of which the option or right is
     granted.

     "MARKET PRICE" means the price of a Share on Nasdaq (or any other reporting
     system or market selected by the Committee) at the time a stock
     appreciation right is exercised.

     "PARTICIPANT" means an Employee who has been granted an Award pursuant to
     the Plan.

     "PERFORMANCE BONUS" means an Award described in Section 6(c) hereof.

     "PERFORMANCE CYCLE" means a period of three consecutive fiscal years of the
     Company or such other period as the Committee may specify.

     "PLAN" means the Genuity Inc. 2000 Long-Term Stock Incentive Plan, on the
     date of adoption hereof and as it may be amended from time to time.

     "RELATED ENTITY" means a corporation, partnership, joint venture or other
     entity in which the Company has an ownership or other proprietary interest
     of at least ten percent.

     "SHARES" means shares of Common Stock.

4.   PARTICIPATION

     Only those Employees designated from time to time by the Committee shall
     participate in the Plan and receive Awards hereunder.

5.   ADMINISTRATION

(a)  The Plan and all Awards granted pursuant thereto shall be administered by
     the Committee. The Committee shall periodically determine, in its sole
     discretion, the Employees who shall participate in the Plan and the terms
     of the Awards to be granted to Participants.  All questions of
     interpretation

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 2
<PAGE>

     and administration with respect to the Plan, Awards, and Award Agreements
     shall be determined by the Committee in its sole and absolute discretion,
     and its determinations shall be final and binding upon all parties.

(b)  The Committee may delegate its authority under subsection (a), above, to
     persons other than its members to the extent it deems such action
     advisable.  Any person to whom the Committee has delegated authority under
     subsection (a), above, may receive Awards only if the Awards are granted
     directly by the Committee without delegation.

(c)  The Committee may, in its sole discretion, promulgate general regulations
     and guidelines governing the administration of the Plan and the Awards
     granted hereunder. The Committee also may establish regulations governing
     the deferred payment of Awards and may determine that deferred payments
     shall accrue interest at a rate or rates determined by the Committee and/or
     that deferred payments shall be deemed to be invested in Share equivalents
     or other hypothetical investments.

(d)  The Committee may not at any time adjust the purchase price, Grant Price,
     or Market Price specified by Section 3 hereof (except for adjustments
     pursuant to Section 13 hereof).

(e)  Notwithstanding anything in the Plan to the contrary, with respect to any
     Participant or eligible person who is resident outside of the United
     States, the Committee may, in its sole discretion, amend the terms of the
     Plan in order to conform such terms with the requirements of local law or
     to meet the objectives of the Plan. The Committee may, where appropriate,
     establish one or more sub-plans for this purpose.

6.   TYPES OF AWARDS

     The types of Awards described in subsections (a) through (d), below, may be
     granted or payable under the Plan, singly or in combination or in tandem
     with other Awards (or with awards under other plans of the Company or a
     Related Entity), as the Committee may determine. All Awards shall be in a
     form determined by the Committee. No Award shall be inconsistent with the
     terms of the Plan or fail to satisfy the requirements of applicable law.

     The Committee may, from time to time, grant dividend equivalents in respect
     of Awards.

(a)  Stock Options
     -------------

     A stock option represents the right to purchase a specified number of
     Shares, at a fixed Grant Price, during a specified term as the Committee
     may determine. The term of a stock option shall not exceed ten years from
     the date as of which the Grant Price is determined.

     The Grant Price shall be payable, at the discretion of the Committee, by
     the payment of cash, the delivery of Shares, and/or any other means that

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 3
<PAGE>

     the Committee determines to be consistent with the Plan's purposes and
     applicable law.

     The stock options that may be granted under the Plan include (but are not
     limited to) incentive stock options that comply with the requirements of
     Section 422(b) of the Code. Incentive stock options may not be granted
     under the Plan after February 1, 2010. Incentive stock options may be
     granted only to Employees who are employed by the Company or by a
     subsidiary corporation (within the meaning of Section 424(f) of the Code),
     including a subsidiary corporation that becomes such after the adoption of
     the Plan.

     The Committee also may grant a right to purchase additional Shares to a
     Participant contingent upon the surrender of Shares owned by the
     Participant in payment of the Grant Price of a stock option granted under
     the Plan or upon the surrender of Shares by the Participant in payment of
     withholding tax liability with respect to such a stock option.

     The Grant Price of the initial stock options granted to Participants who
     were employees of the Company on or before the effective date of the
     Company's initial public offering, shall be the initial public offering
     price per Share. All other stock options granted under the Plan shall be
     exercisable at the Grant Price.

(b)  Stock Appreciation Rights
     -------------------------

     A stock appreciation right represents the right, denominated in Shares, to
     receive, upon surrender of the right (or of both the right and a related
     option in the case of a tandem right), in whole or in part, but without
     payment, an amount (payable in accordance with Section 9 hereof) that does
     not exceed the excess of the Market Price over the Grant Price for the
     number of Shares for which the stock appreciation right is exercised. The
     term of a stock appreciation right shall not exceed ten years from the date
     as of which the Grant Price is determined.

(c)  Performance Bonuses
     -------------------

     The Committee may, from time to time, grant Performance Bonuses to
     Participants in accordance with such terms and conditions that the
     Committee in its sole discretion may establish. Any such Performance
     Bonuses shall be payable in the form of Shares only (except for cash in
     lieu of fractional shares).

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 4
<PAGE>

(d)  Other Stock-Based Awards
     ------------------------

     The Committee may, from time to time, grant Awards (other than the Awards
     described above) under the Plan that consist of or are denominated in or
     payable in, valued in whole or in part by reference to, or otherwise based
     on or related to, Shares. These Awards may include Shares and/or
     hypothetical Shares.

     The Committee may subject these Awards to restrictions on transfer and/or
     other restrictions on incidents of ownership as the Committee may
     determine.

     The Committee may grant Awards under this Section 6(d) that do not require
     the payment of additional consideration by the Participant (other than
     services previously rendered or, as may be permitted by applicable law,
     services to be rendered), either on the date of grant or the date any
     restriction(s) thereon are removed.

     The term of an Award that grants a Participant the right to purchase Shares
     shall not exceed ten years from the date as of which the purchase price is
     determined.

7.   LIMITATIONS ON AWARDS

     (a)  No Participant shall be granted options to purchase more than two
          million Shares in one calendar year.

     (b)  Except as provided in subsection (c), below, a Participant shall
          receive only one Award grant during the period beginning on the
          effective date of the Plan and ending four years after the effective
          date of the Plan.

     (c)  A Participant may receive a grant of an Award under the Plan at any
          time to the extent that such grant is consistent with a promotion or
          other significant increase in responsibility or, in the discretion of
          the Committee, necessary to ensure that the Awards granted to such
          Participant are appropriate in comparison to the Awards granted to
          other Participants.

     (d)  No Award shall be assignable or transferable other than by will or by
          the laws of descent and distribution. During the Participant's
          lifetime, an Award may be exercised only by the Participant or by the
          Participant's guardian or legal representative.

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 5
<PAGE>

8.   AWARD AGREEMENTS

     An Award may be evidenced by an Award Agreement, the terms of which have
     been approved by the Committee, setting forth the terms and conditions
     applicable to the Award, including

     (a)  terms and conditions governing the extent (if any) to which the Award
          may vest, become exercised, be exercised or paid, or be canceled or
          forfeited,

     (b)  terms and conditions governing the disposition of the Award in the
          event of disability, death, or other termination of a Participant's
          employment,

     (c)  a provision that a Participant shall have no rights as a shareholder
          with respect to any Shares covered by an Award until the date on which
          the Participant or his nominee becomes the holder of record of such
          Shares, and

     (d)  terms and conditions governing tax withholding.

9.   PAYMENT OF AWARDS

     (a)  All payments of Awards shall be made on a date prescribed by the
          Committee, unless the Participant has elected to defer payment in
          accordance with the rules and regulations established by the
          Committee.

     (b)  At the discretion of the Committee, a Participant may be offered an
          election to substitute an Award for another Award or Awards of the
          same or different type.

     (c)  No fractional Shares shall be issued in connection with Awards under
          the Plan. The Committee shall determine whether cash, other
          securities, or other property shall be paid or transferred in lieu of
          fractional Shares, or whether fractional Shares or any rights thereto
          shall be canceled, terminated, or otherwise eliminated.

     (d)  Except as provided in subsection (c), above, payments of Awards shall
          be wholly in Shares. The Committee, in its sole discretion, shall
          determine whether the Shares shall be subject to restrictions on
          transfer and/or provisions regarding forfeiture of said Shares.

10.  REVOCATION OR AMENDMENT OF AWARDS

     (a)  Subject to any early termination restrictions imposed by the Committee
          in an Award Agreement and except as provided in subsection (b), below,
          the Committee may not, without the written consent of the Participant,
          revoke

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 6
<PAGE>

          an Award Agreement, and may not without such written consent make or
          change any determination or change any term, condition, or provision
          affecting an Award if the determination or change would adversely
          affect the Award or a Participant's rights thereto.

     (b)  The Committee may at any time and in any manner modify the terms of an
          Award that relate to the early termination of the option or Award
          period after the Participant's termination of employment; provided
          that such modification shall not apply to an Award to the extent that
          it has been previously exercised.

11.  LIMITATION ON NUMBER OF SHARES

     (a)  The aggregate number of Shares that may be subject to all Awards shall
          not exceed:

          (1)  Five percent of the outstanding Shares at the time of the initial
               public offering of the Shares for all individuals who were
               Employees on or before April 6, 2000, in the aggregate (except
               for Awards granted pursuant to Section 7(c) hereof;

          (2)  One percent of the outstanding Shares at the time of the initial
               public offering of the Shares for all individuals who first
               become Employees after April 6, 2000, and on or before January 6,
               2001, in the aggregate (except for Awards granted pursuant to
               Section 7(c) hereof); and

          (3)  Three percent of the outstanding Shares at the time of the
               initial public offering of the Shares plus any Shares that are
               forfeited by a Participant or that are part of an Award that
               expires unexercised for Awards granted pursuant to Section 7(c)
               hereof and for all individuals who first become Employees after
               January 6, 2001, in the aggregate.

     (b)  Subject to the limits imposed by subsection (a), above, no more than
          50,000,000 Shares shall be available to be issued pursuant to
          incentive stock options (within the meaning of Section 422(b) of the
          Code or any successor thereto).

12.  AMENDMENT OR TERMINATION OF THE PLAN

     The Board may, from time to time, alter, amend, suspend or terminate the
     Plan as it shall deem advisable, subject to any requirement for shareholder
     approval imposed by applicable law.  The termination of the Plan shall not
     cause any previously granted Awards to terminate.  After the termination of
     the Plan, any

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 7
<PAGE>

     previously granted Awards shall remain in effect and shall continue to be
     governed by the terms of the Plan, the Awards, and any applicable Award
     Agreements. This Section applies regardless of whether the termination of
     the Plan occurs pursuant to Section 2 hereof or pursuant to this Section
     12.

13.  ADJUSTMENT PROVISIONS

     If the Committee determines that any dividend or other distribution
     (whether in the form of cash, Shares, other securities, or other property),
     extraordinary cash dividend, recapitalization, stock split, reverse stock
     split, reorganization, merger, consolidation, split-up, spin-off,
     combination, repurchase, or exchange of Shares or other securities, the
     issuance of warrants or other rights to purchase Shares or other
     securities, or other similar corporate transaction or event affects the
     Shares with respect to which Awards have been or may be issued under the
     Plan and that an adjustment is appropriate in order to prevent dilution or
     enlargement of the benefits or potential benefits intended to be made
     available under the Plan, then the Committee shall, in a manner that the
     Committee deems appropriate to prevent such dilution or enlargement, adjust
     any or all of

     (a)  the number and type of securities that thereafter may be issued under
          the Plan,

     (b)  the number and type of securities subject to outstanding Awards, and

     (c)  the Grant Price, purchase price, or Market Price with respect to any
          Award, or, if deemed appropriate, make provision for a cash payment to
          the holder of an outstanding Award.

     However, no adjustment shall be authorized with respect to incentive stock
     options to the extent that the adjustment would cause the options to
     violate Section 422(b) of the Code or any successor provision.  In
     addition, the number of securities subject to any Award denominated in
     Shares shall always be a whole number.

     In the event of an acquisition by the Company by means of a merger,
     consolidation, acquisition of property or stock, reorganization or
     otherwise, the Committee shall be authorized to cause the Company to issue
     or to assume stock options or stock appreciation rights, whether or not in
     a transaction to which Section 424(a) of the Code applies, by means of
     substitution of new options or rights for previously issued options or
     rights or an assumption of previously issued options or rights, but only if
     and to the extent that the substitution or assumption is consistent with
     the other provisions of the Plan and with any applicable law.

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 8
<PAGE>

     Subject to any required action by the Company's shareholders, if the
     Company is a party to any merger or consolidation, a Participant holding an
     outstanding Award valued directly or indirectly by Shares shall be entitled
     to receive, upon the exercise of the Award, the same per Share
     consideration on the same terms that a holder of the same number of Shares
     that are subject to the Award would be entitled to receive pursuant to the
     merger or consolidation.

14.  NO REQUIRED SEGREGATION OF ASSETS

     Neither the Company nor any Related Entity shall be required to segregate
     any assets that may at any time be represented by Awards pursuant to the
     Plan.

15.  COSTS

     The Committee may require a Participant or beneficiary to bear all or part
     of the cost of exercising an Award or issuing Shares under the Plan.

16.  RIGHT OF DISCHARGE RESERVED

     Neither the Plan nor any Award or Award Agreement shall guarantee any
     Employee continued employment with the Company or a Related Entity or
     guarantee the grant of future Awards.  Either the Company or the Employee
     may terminate the employment relationship at any time and for any reason.

17.  NATURE OF PAYMENTS

     All Awards made pursuant to the Plan are in consideration of services for
     the Company or the Related Entities. Any gain realized pursuant to Awards
     under the Plan constitutes a special incentive payment to the Participant
     and shall not be taken into account as compensation for purposes of any of
     the employee benefit plans of the Company or any Related Entity except as
     may be determined by the Board or by the board of directors of the
     applicable Related Entity.

18.  SEVERABILITY

     If any provision of the Plan shall be held unlawful or otherwise invalid or
     unenforceable in whole or in part, the unlawfulness, invalidity, or
     unenforceability shall not affect any other provision of the Plan or part
     thereof, each of which shall remain in full force and effect.

19.  GOVERNING LAW

     To the extent not preempted by federal law, the provisions of the Plan will
     be construed and enforced in accordance with the laws of the Commonwealth
     of Massachusetts, excluding any conflicts or choice of law rule or
     principle that might otherwise refer construction or interpretation of this
     provision to the substantive law of another jurisdiction, except that
     issues regarding the rights attendant to stock ownership shall be governed
     by the laws of the State of Delaware (excluding its conflicts or choice of
     law rules or principles) and construed accordingly.

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Genuity Inc. 2000 Long-Term Stock Incentive Plan                          Page 9

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