Document:

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                                                                    Exhibit 10.6

                                  TAX AGREEMENT

This Agreement is made as of the 26th day of February 1999 by and among Bell
Atlantic Corporation, a Delaware corporation ("BAC"), Bell Atlantic Network
Systems Company, a Delaware corporation ("BANS"), and FLAG Telecom Holdings
Limited, a limited company organized under the laws of Bermuda ("FLAG
Holdings").

WHEREAS, BANS currently owns approximately 38% of common stock of FLAG Limited,
a limited company organized under the laws of Bermuda ("FLAG"); and

WHEREAS, BANS has agreed to exchange 21,996,928 shares of its FLAG common stock
for 21,996,928 shares of the common stock of FLAG Holdings (the "First
Exchange"), to be followed, upon satisfaction of certain regulatory conditions,
by a second exchange by BANS of the remaining 217,536,730 shares of its FLAG
common stock for 217,536,730 shares of the common stock of FLAG Holdings (the
"Second Exchange"); and

WHEREAS, BANS' agreement to undertake these exchanges is conditioned, among
other things, on each exchange not resulting in gain or loss to BANS or BAC for
United States income tax purposes; and

WHEREAS, to avoid such recognition of gain or loss, (i) the First Exchange must
qualify as a transfer to FLAG Holdings within the meaning of Section 351(a) of
the Internal Revenue Code of 1986 (the "Code"); (ii) the Second Exchange must
qualify as a corporate reorganization within the meaning of Section 368(a)(1)(B)
of the Code; and (iii) with respect to each exchange, BAC (as the parent of the
affiliated group of corporations that includes BANS) must enter into a "gain
recognition agreement" with the Internal Revenue Service pursuant to Section
1.367(a)-8 of the Treasury Regulations; and

WHEREAS, under each gain recognition agreement, BAC will be required to
recognize gain or loss in connection with the applicable exchange if, within the
five full taxable years of BAC following the year in which the exchange occurs,
FLAG Holdings disposes of any FLAG shares, or FLAG disposes of substantially all
of its assets; and

WHEREAS, the parties wish to assure that neither BAC nor BANS will be required
to recognize gain or loss with respect to either the First Exchange or the
Second Exchange and, to that end, the parties have requested an opinion of
counsel from Morgan, Lewis & Bockius, as tax counsel to FLAG ("Tax Counsel"),
that neither exchange will result in gain or loss to BAC, BANS, or other U.S.
shareholders of FLAG.

NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree as
follows:

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1.       FIRST EXCHANGE

         With respect to the First Exchange, FLAG Holdings agrees that:

         (a)      it will make such representations regarding itself, its
                  shareholders, and FLAG as are necessary to enable Tax Counsel
                  to render an opinion that the First Exchange will qualify as a
                  transfer described in section 351(a) of the Code; and

         (b)      during the five full taxable years of BAC following the year
                  in which the First Exchange occurs, it will not dispose of any
                  FLAG shares and it will neither cause nor permit FLAG to
                  dispose of substantially all of FLAG's assets within the
                  meaning of Sections 1.367(a)-8(e)(1), (2), and (3) of the
                  Treasury Regulations (or any successor Treasury Regulations).

2.       SECOND EXCHANGE

         With respect to the Second Exchange, FLAG Holdings agrees that:

         (a)      it will make such representations regarding itself, its
                  shareholders, and FLAG as are necessary to enable Tax Counsel
                  to render an opinion that the Second Exchange will qualify as
                  a corporate reorganization described in section 368(a)(1)(B)
                  of the Code; and

         (b)      during the five full taxable years of BAC following the year
                  in which the Second Exchange occurs, it will not dispose of
                  any FLAG shares and it will neither cause nor permit FLAG to
                  dispose of substantially all of its assets within the meaning
                  of Sections 1.367(a)-8(e)(1), (2), and (3) of the Treasury
                  Regulations (or any successor Treasury Regulations).

3.       INDEMNIFICATION

         If FLAG Holdings or FLAG or any shareholder of either company (other
         than BANS) should breach any of the agreements or representations
         provided for in Sections 1 and 2 above, FLAG Holdings shall promptly
         notify BAC and BANS of such breach and shall promptly indemnify BAC and
         BANS for (i) any Federal, State or local income tax cost incurred by
         BAC or BANS as a result of such breach, and (ii) any other costs or
         expenses incurred by BAC or BANS in connection with such breach,
         provided, further, that any such indemnification payment under clause
         (i) shall be in accordance with the following provisions:

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         (a)      the payment shall be grossed-up so that the net amount
                  realized by the indemnified party, after taking into account
                  income taxes incurred by such party with respect to the
                  indemnification payment, is equal to the tax cost described in
                  clause (i) above;

         (b)      if, at the time of such payment, BAC or BANS is a shareholder
                  of FLAG Holdings, BAC or BANS shall receive, in addition to
                  the amount calculated in accordance with Section 3(a) above
                  (the "Section 3(a) amount"), a further amount equal to (x) the
                  Section 3(a) amount, multiplied by (y) the percentage of FLAG
                  Holdings shares owned by BAC or BANS;

         (c)      any payment obligations arising under Sections 3(a) and (b)
                  above after the Second Exchange may be settled by the issuance
                  of common stock of FLAG Holdings if, in the opinion of Tax
                  Counsel, payment in cash will result in the second exchange
                  not qualifying as a corporate reorganization within the
                  meaning of Section 368(a)(1)(B) of the Code, provided that, if
                  payment is made in common stock, the value of such stock shall
                  be equal to the amount of cash that would have been paid under
                  Sections 3(a) and (b), calculated as if the payment under
                  Section 3(a) was fully taxable to BAC to BANS; and

         (d)      if, subsequent to an indemnification under this Section,
                  either BAC or BANS realizes a U.S. tax benefit from any
                  increased basis in FLAG Holdings shares attributable to a
                  breach of Sections 1 or 2 above that resulted in such
                  indemnification payment, BAC or BANS shall promptly repay to
                  FLAG Holdings that portion of such indemnification payment
                  equal to the tax benefit realized (together with the related
                  gross-up amounts calculated in accordance with Sections 3(a)
                  and (b) above).

4.       ENTIRE AGREEMENT/SUCCESSORS AND ASSIGNS

         This Agreement constitutes the entire agreement between the parties and
         supersedes any previous agreements, arrangements or understandings
         between them relating to the subject matter hereof. Each party
         acknowledges that it is not relying on any statements, warranties or
         representations given or made by the other party relating to the
         subject matter hereof, save as expressly set out in this Agreement. The
         rights and obligations of each party to this Agreement shall apply to
         and be assumed by the party's successors or assigns (if any).

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5.       VARIATION/SURVIVAL

         No variation or amendment to this Agreement shall be effective unless
         in writing signed by authorized representatives of each of the parties.
         This Agreement and the obligations of the parties hereto shall remain
         in full force and effect, notwithstanding any disposition by BAC or
         BANS of any shares of FLAG Holdings or FLAG.

6.       NOTICES

         Any notice, request, demand or other communication required or
         permitted hereunder shall be in writing and shall be sufficiently given
         if in English, and delivered by hand or sent by prepaid registered or
         certified mail (airmail if international) by facsimile or by prepaid
         international courier of international reputation addressed to the
         appropriate party at the following address or to such other address or
         place as such party may from time to time designate:

                  If to FLAG Holdings or FLAG:

                  FLAG Telecom Holdings Limited
                  The Emporium Building
                  69 Front Street - 4th Floor
                  Hamilton HM12 Bermuda
                  Attention:  Chairman and CEO
                  Tel:  1 441 296 0909
                  Fax:  1 441 296 0938

                  with copy to:

                  FLAG Telecom Limited
                  103 Mount Street - 3rd Floor
                  London W1Y 5HE
                  U.K.
                  Attention:  General Counsel

                  If to BAC or BANS:

                  Bell Atlantic
                  1095 Avenue of the Americas
                  New York, NY  10036
                  Attention:  President - International Group

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                  with copy to:

                  Bell Atlantic
                  1095 Avenue of the Americas
                  New York, NY  10036
                  Attention:  Associate General Counsel - International
                  Tel:  212 395-2376
                  Fax:  212 764-2739

         Any notice, request demand or other communication given or made
         pursuant to this Section shall be deemed to have been received (i) in
         the case of hand delivery, on the date of receipt as evidenced by a
         receipt of delivery from the recipient, (ii) in the case of mail
         delivery, on the date which is seven days after the mailing thereof,
         and (iii) in the case of transmission by facsimile, on the date of
         transmission with confirmed answer back. Each such communication sent
         by facsimile shall be promptly confirmed by notice in writing
         hand-delivered or sent by courier, mail or air mail as provided herein,
         but failure to send such a confirmation shall not affect the validity
         of such communication.

7.       COUNTERPARTS

         This Agreement may be executed in any number of counterparts, each of
         which as so executed shall be deemed to be an original, but such
         counterparts shall together constitute but one and the same instrument.

8.       GOVERNING LAW

         This Agreement shall be governed by and construed in accordance with
         the laws of New York without regard to the laws of New York governing
         conflicts of laws.

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date
and year first above written.

FLAG TELECOM                                   BELL ATLANTIC NETWORK
HOLDINGS LIMITED                               SYSTEMS COMPANY

By:  /s/  Judith Collis                        By:  /s/  Daniel C. Petri
     ------------------------------                 ----------------------------
     Name: Judith Collis                            Name: Daniel C. Petri
     Title:  Deputy Chairperson                     Title: President

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<PAGE>

                                               BELL ATLANTIC CORPORATION

                                               By:  /s/ Name of Signatory
                                                    ----------------------------
                                                    Name:
                                                    Title: Secretary

                                        6<PAGE>

                                                                   Exhibit 10.7

                                                            ML&B DRAFT 12/18/99

                                                                  VI B. (14)(b)

                         MARKETING TRANSITION AGREEMENT

This Marketing Transition Agreement is entered into this 14th day of May, 1998
(the "Effective Date") by and between Bell Atlantic Network Systems (Bermuda)
Limited, formerly NNS (Bermuda) Limited, a Bermuda corporation with offices at
The Emporium Building, 69 Front Street - Fourth Floor, Hamilton HM12, Bermuda
("BANSB"), NYNEX Network Systems Company, a Delaware Corporation with offices at
4 West Red Oak Lane, White Plains, New York 10604 ("NNS") and FLAG Limited, a
Bermuda Corporation with offices at Richmond House, 12 Par-la- Ville Road,
Hamilton, HM08, Bermuda ("FLAG"). BANSB, NNS and FLAG are hereinafter also
referred to individually as "Party" and collectively as the "Parties."

                                    RECITALS

WHEREAS, On April 19, 1994, BANSB and FLAG entered into a Marketing Services
Agreement (the "Agreement"), pursuant to which BANSB secured the exclusive right
to provide certain marketing services for FLAG for the operating life of the
FLAG cable (the "Marketing Services"); and

WHEREAS, with the closure of FLAG's permanent financing and movement to an
operating entity, FLAG believes that it is now better positioned to devote its
attention to the marketing and sale of

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FLAG capacity and BANSB is willing to transition its obligations under the
Agreement to FLAG; and

WHEREAS, FLAG and BANSB desire to describe the terms and conditions under which
an orderly transition of BANSB's obligations under the Agreement to FLAG should
occur, with such terms and conditions including, INTER ALIA, (i) a discussion of
how FLAG intends to market and sell FLAG capacity, (ii) an implementation plan
for the transition of BANSB functions to FLAG in a manner that is seamless to
the industry, (iii) various payments to BANSB, and (iv) the continued
involvement of NNS in the activities of FLAG, in recognition of Bell Atlantic
Corporation's strategic importance as not only FLAG's largest investor but as
one of the largest telecommunications companies in the world.

NOW, THERFORE, in consideration of the mutual promises set forth herein, the
Parties agree as follows:

1.       TRANSITION

         (a) The Agreement shall terminate on the seventh day after the
         Effective Date (the "Termination Date"). In advance of said Termination
         Date, the Parties agree that continuity and stability are essential if
         the sales, marketing and support functions presently being performed by
         BANSB are to be transitioned to FLAG in an orderly and efficient
         manner. The Parties shall jointly develop a transition plan aimed at
         completing the transition by the

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         Termination Date in a manner that is transparent to the customer.
         During this transition period, BANSB will cooperate to implement with
         FLAG personnel decisions of FLAG regarding the personnel named on
         Schedule 1 hereto. BANSB and FLAG will use best efforts to ensure all
         sales related processes necessary to accomplish a smooth transition
         will be in place prior to the Termination Date. Without limiting the
         generality of the foregoing, BANSB will transfer to FLAG in a timely
         manner all operating procedures and work product in a usable manner and
         will provide FLAG-designated personnel with appropriate orientation.
         All costs accruing after the Termination Date with respect to BANSB
         personnel who transfer to FLAG will become the obligation of FLAG,
         other than commissions on sales for which FLAG must pay commissions to
         BANSB.

         (b) All expenses associated with the transition of BANSB obligations to
         FLAG ("Transition Expenses") up to the amount set forth in Schedule 2
         hereto, shall be paid by FLAG, provided that Transition Expenses shall
         not include expenses (other than overhead set forth in Schedule 2
         between the Effective Date and the Termination Date) to be agreed upon
         by the Parties which would in any event have been incurred by BANSB
         even without such transition. These Transition Expenses include, INTER
         ALIA, the costs associated with (i) consultant terminations (severance
         costs associated with consultants will be determined by reference to
         that consultant's contract and paid by FLAG and will include those
         consultants who are offered a position with FLAG but who determine not
         to join FLAG), (ii) BANSB employee terminations (severance costs
         associated with BANSB employees will be determined by BANSB and FLAG),
         (iii) lease terminations in Bermuda (both the Front

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         Street office as well as apartment leases of specified BANSB personnel)
         and Hong Kong, (iv) equipment leases, (v) the costs associated with the
         closure of BANSB's Amsterdam and Hong Kong office, and (vi) losses on
         the disposal of certain fixed assets calculated by reference to said
         assets written down value. Beyond the amounts described in Section 2,
         FLAG shall have no responsibility for any expenses associated with the
         winding up of BANSB and BANSB will indemnify and hold harmless FLAG
         from any additional Transition Expenses and causes of action relating
         thereto.

         (c) Although there is no right of assignment under the various
         consultant agreements that BANSB has with its sales force, BANSB will
         work with FLAG in an effort to secure such assignment to FLAG, if FLAG
         so requests, but FLAG will have no obligation to take over any such
         agreements.

         (d) FLAG shall identify those BANSB and NNS employees that FLAG wishes
         to have in its organization. BANSB and NNS will work with FLAG and
         these employees to attempt to secure the most appropriate arrangement,
         either through secondment or direct hire by FLAG.

         (e) FLAG and BANSB will use best efforts to minimize Transition
         Expenses. Without limiting the generality of the foregoing, BANSB will
         act promptly in issuing notices of termination of relevant agreements
         and other arrangements.

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         (f) Neither BANSB nor any of the BANSB personnel will incur any
         obligations or take any other actions for which FLAG could be liable
         without FLAG's prior written consent.

2.       BELL ATLANTIC SERVICES

         (a) BANSB and NNS are affiliates of Bell Atlantic Corporation ("Bell
         Atlantic"). Recognizing Bell Atlantic's position as one of the largest
         telecommunication companies in the owrld, FLAG and NNS will work
         together after the termination of the Agreement to jointly secure the
         objectives of FLAG. NNS's work with FLAG (hereinafter, "Bell Atlantic
         Services"), shall include, but not be limited to, (i) working together
         to secure commitments from telecommunications carriers for capacity,
         (ii) working together on strategic initiatives, including new products,
         services and pricing, (iii) providing input to FLAG on industry trends
         and evaluating the impact of those trends on FLAG, (iv) providing
         technical support to FLAG, (v) providing legal and regulatory support
         as needed, and (vi) providing communications support.

         (b) The Chief Executive Officer of FLAG and a designee of NNS shall
         discuss the Bell Atlantic Services and other ways for Bell Atlantic to
         assist FLAG in achieving its goals once every two weeks.

         (c) FLAG shall provide monthly reports to NNS and the Board of
         Directors of FLAG (the "FLAG Board") regarding the marketing activities
         performed by FLAG and the amount of capacity on the FLAG cable for
         which forecasts or commitments have been received.

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         Such reports shall be in such form and contain such details as may
         reasonably requested by NNS or the FLAG Board, and shall include
         tracking for prospective customers, including size, close date and
         probability of success. FLAG shall keep detailed records of all
         material activities performed in relation to the provision of marketing
         services and on reasonable notice, FLAG shall make the same available
         for inspection by the FLAG Board. NNS shall provide monthly reports to
         FLAG regarding the Bell Atlantic Services. NNS shall keep detailed
         records of such Bell Atlantic Services and, on reasonable notice, shall
         make the same available for inspection by FLAG.

         (d) FLAG shall maintain records of all Bell Atlantic Services performed
         by NNS or an affiliate. For incidental services (E.G., setting up an
         Embassy meeting or discussing market conditions) NNS will not bill
         FLAG. For any longer term, discrete work efforts performed by NNS for
         FLAG, FLAG shall reimburse NNS for all costs and out-of-pocket expenses
         incurred by NNS. Costs associated with these discrete work efforts will
         be agreed upon in writing, in advance by FLAG and NNS.

         (e) The Chief Executive Officer of FLAG, one representative from NNS
         and one representative from the FLAG Board will form a Committee (the
         "Goals and Objectives Committee") to provide guidance to FLAG
         management on strategic matters relating to the marketing and sale of
         FLAG capacity. FLAG management shall discuss all material strategic and
         pricing matters which require FLAG Board approval with the Goals and
         Objectives Committee in advance of presentation to the Board.

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         (f) NNS shall be and shall serve as an independent contractor. Neither
         FLAG on the one hand, nor NNS, on the other hand, shall have any
         authority to bind or commit the other or to represent itself as an
         agent of the other.

3.       BANSB COMMISSION

         Consistent with Section 2 of the Agreement, BANSB shall be entitled to
         all commissions due and owing, to the extent that a capacity sales
         and/or credit agreement has been executed by the Effective Date. In
         addition, with respect to capacity sales and/or credit agreements which
         have been executed by the Effective Date, and under which FLAG has the
         right to render invoices after the Effective Date, BANSB will be
         entitled to commissions on the cash amount payable under each such
         invoice which may be rendered by FLAG within twenty four (24) months
         after the Effective Date. BANSB will also be entitled to commissions,
         up to a maximum of $3,000,000, of 3% of the cash amount payable by any
         carriers set forth in Schedule 3 hereto under invoices which FLAG may
         render within one year after the Effective Date under capacity sales
         and/or credit agreements executed by FLAG with such carriers within
         such one year period. Except as provided for in this Section, BANSB
         shall not be entitled to any commissions under the Agreement or this
         Marketing Transition Agreement.

4.       SALES AGENT

         (a) The Parties recognize that BANSB will be transferring to FLAG its
         rights and obligations under the Agreement just at a time when the FLAG
         system has become

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         opreational and before BANSB, as sales agent, has an opportunity to
         gain significant strategic value and enjoy fuller exposure in the
         marketplace.

         (b) As of the Termination Date, BANSB or an affiliate of BANSB shall,
         for the life of the FLAG system, be FLAG's non-exclusive sales agent
         for the sale of four ("4") whole DS- 3s or, in the aggregate, 84 E-1s
         of capacity on the FLAG system from the United Kingdom to Japan. The
         total bandwidth provided may be dividable across any combination of
         terminal pairs. BANSB shall bear any and all expenses associated with
         the marketing of these four DS-3s. FLAG shall have the right to accept
         or reject any offers to purchase capacity ("purchase" being defined
         under the Agreement) which are presented by BANSB to FLAG, but FLAG
         shall not unreasonably refuse to accept such offers. FLAG and BANSB
         shall divide equally the net sale proceeds of the purchase price from
         any such sale of capacity. No additional commission will be earned
         pursuant to Section 3 of this Marketing Transition Agreement with
         respect to any capacity sold pursuant to this Section 4. The marketing
         activities as to the four DS-3s will be coordinated with FLAG.

5.       OUTSTANDING BILLS

         There are certain outstanding bills (the "Outstanding Bills") that
         BANSB or NNS have sought payment from FLAG. These Outstanding Bills
         include, INTER ALIA (i) certain publicity, and promotional work
         performed for FLAG, (ii) legal fees from the firm of Paul, Weiss,
         Rifkind, Wharton and Garrison, and (iii) miscellaneous expenses
         associated with the Program Management Services Agreement between FLAG
         and NNS. In full settlement of

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         these Outstanding Bills, FLAG will make a payment to BANSB on the
         Effective Date of $750,000.

6.       RELEASE

         (a) FLAG, on behalf of itself, FLAG's shareholders, its heirs, legal
         representatives, subsidiaries and assigns agrees not to sue and does
         hereby release and forever discharge BANSB and its subsidiaries and
         affiliates, successors and assigns, and their past and present
         officers, directors, employees, agents, and the heirs, legal
         representatives and assigns of any of said persons (the "BANSB
         Releases") of and from any and all, and all manner of, actions and
         causes of action, suit, debts, dues, expenses, accounts, bonds,
         covenants, agreements, judgments, claims, damages, counterclaims and
         demands whatsoever, in law or equity, that FLAG and its shareholders
         had, have, or may have against the BANSB Releasees based upon the
         Agreement and the performance of the BANSB Releasees thereunder, with
         the exception of those actions and causes of action, suit, debts, dues,
         expenses, accounts, bonds, covenants, agreements, judgments, claims,
         damages, counterclaims and demands which arise from the gross
         negligence or willful misconduct of BANSB.

         (b) BANSB on behalf of itself, BANSB's Shareholder, its heirs, legal
         representatives, affiliates, parent company, subsidiary and assigns
         agrees not to sue and does hereby release and forever discharge (i)
         FLAG and its subsidiaries and affiliates, successors and assigns, (ii)
         the Administrative Agent, the Collateral Trustee and the Lenders from
         time to time

                                        9
<PAGE>

         parties to the Credit Agreement dated as of January 28, 1998 among
         FLAG, the Administrative Agent, the Collateral Trustee and the Lenders
         (the "Credit Agreement"), and (iii) their past and present officers,
         directors, employees, agents, and the heirs, legal representatives and
         assigns of any of said persons (the "FLAG Releasees") of an from any
         and all, and all manner of, actions and causes of action, suit, debts,
         dues, expenses, accounts, bonds, covenants, agreements, judgments,
         claims, damages, counterclaims and demands whatsoever, in law or
         equity, that BANSB had, has, or may have against the FLAG Releasees
         based upon the Agreement and the performance of the FLAG Releasees
         thereunder, with the exception of those actions and causes of action,
         suit, debts, dues, expenses, accounts, bonds, covenants, agreements,
         judgments, claims, damages, counterclaims and demands which arise from
         the gross negligence or willful misconduct of FLAG.

7.       REPRESENTATIONS

         The signatories represent that they have been granted by their
         respective principals full power and authority to compromise and settle
         all claims related to the Agreement, to agree to the confidentiality
         provisions herein and to execute this Marketing Transition Agreement.

8.       CONFIDENTIALITY

         It is understood and mutually agreed that:

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<PAGE>

         (a) Except as required by law, the Parties shall keep strictly
         confidential this Marketing Transition Agreement, any facts, claims,
         allegations or terms and conditions relating to all or a part of this
         Marketing Transition Agreement, any statements, negotiations,
         proceedings or opinions in connection therewith and any information
         made available by one Party to another Party pursuant to the terms of
         this Marketing Transition Agreement;

         (b) Except as required by law or regulation, no Party will seek or
         create any publicity or make any statement to anyone concerning the
         other Parties to this Marketing Transition Agreement or any of their
         affiliates, or present or former officers, directors, employees or
         agents;

         (c) The restrictions under clauses (a) and (b) immediately above shall
         not apply to the Administrative Agent, the Collateral Trustee and the
         Lenders from time to time parties to the Credit Agreement dated as of
         January 28, 1998 among FLAG, the Administrative Agent, the Collateral
         Trustee and the Lenders; and

         (d) Any press releases concerning this Marketing Transition Agreement
         must be reviewed in advance and approved by both FLAG and BANSB.

9.       ORAL MODIFICATIONS

         This Marketing Transition Agreement may not be changed orally.

                                       11

<PAGE>

10.      GOVERNING LAW

         This Marketing Transition Agreement shall be governed by and construed
         in accordance with the laws of the State of New York, without giving
         effect to the principles of conflicts of laws thereof.

11.      SURVIVAL

         Obligations under this Marketing Transition Agreement which, by their
         nature, would continue beyond the termination of this Marketing
         Transition Agreement, shall survive such termination.

12.      WAIVER

         The failure of any Party to exercise any right provided for herein
         shall not be deemed a waiver of such right and the wiaver of any right
         provided for herein shall not be deemed a waiver of any other right
         hereunder.

13.      BINDING NATURE

         This Marketing Transition Agreement shall be binding upon, and inure to
         the benefit of, each of the Parties and their respective successors and
         permitted assigns, provided that no Party may assign this Marketing
         Transition Agreement without the prior written consent of the other
         Parties, and any attempted assignment without such consent shall be
         null and void; provided, further, however, that FLAG may pledge and
         assign this marketing Transition Agreement to the Collateral Trustee
         for the benefit of the Secured Parties, as defined in the

                                       12
<PAGE>

         Credit Agreement. Nothing contained in this Marketing Transition
         Agreement, express or implied, shall be deemed to confer any right or
         remedy upon, or obligate any Party to, any person or entity other than
         the Parties. Notwithstanding the foregoing, and consistent with Section
         6.11 of the Credit Agreement, in the event that the Majority Lenders
         (as defined under the Credit Agreement) do not find this Marketing
         Transition Agreement reasonably satisfactory, then the Parties shall
         jointly take such action as is necessary to satisfy said Majority
         Lenders.

14.      ENFORCEABILITY

         If any term in or provision of this Marketing Transition Agreement
         shall be held to be illegal, invalid or unenforceable, in whole or in
         part, under any applicable enactment or rule of law, such term or
         provision or part thereof shall to that extent be deemed not to form
         part of this Marketing Transition Agreement and the validity and
         enforceability of the remainder of this Marketing Transition Agreement
         shall not be affected. The Parties undertake in good faith to replace
         any invalid or unenforceable provision with one which leads to the same
         economic result.

15.      NOTICES

         Any notices required or permitted to be sent under this Marketing
         Transition Agreement shall be sent by registered mail, return receipt
         requested or by express mail, telecopy, or hand delivery to the address
         of the Party in this Section. Notices sent by registered mail shall be
         deemed effective on the third business day following mailing and if
         sent by express mail,

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<PAGE>

         telecopied, or hand delivered, shall be deemed effective on receipt.
         Any Party may change its address and/or recipient for notices by
         notifying the other Party in accordance with this Section.

Any notice required to be delivered to BANSB or NNS shall be sent to:
NYNEX Network Systems Company
Attn: Senior Vice President
4 West Red Oak Lane
White Plains, NY 10604
Facsimile:  914-644-6977

With a copy to:
Bell Atlantic
Legal Department
Attn: Richard G. Warren, Esq.
1095 Avenue of the Americas
New York, NY 10036
Facsimile:  212-764-2739

Any notice required to be delivered to FLAG shall be sent to:
FLAG Limited
Richmond House
12 Par-la-Ville Road
Hamilton HM08 Bermuda
Attention:  Chief Executive Officer

16.      COUNTERPARTS

         This Marketing Transition Agreement may be executed in any number of
         counterparts, each of which shall be deemed an original, but all such
         counterparts shall together constitute but one and the same instrument.

                                       14
<PAGE>

IN WITNESS WHEREOF, the Parties have caused this Marketing Transition Agreement
to be executed by their duly authorized representatives effective as of the day
and year first above written.

FLAG Limited                               Bell Atlantic Network Network Systems
                                           (Bermuda) Limited

By:  /s/ Andres Bande                      By:  /s/ John C. Perry
     -------------------------------            --------------------------------
         Andres Bande                               John C. Perry
         Chief Executive Officer                    President

                                           NYNEX Network Systems Company

                                           By:  /s/ Daniel C. Petri
                                                --------------------------------
                                                    Daniel C. Petri
                                                    Authorized Signator

                                       15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]