Document:

<PAGE>   1
                                                                   EXHIBIT 10.20

                                  $345,000,000
                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

                           DATED AS OF MARCH 15, 2000

                                  BY AND AMONG

                       AIMCO PROPERTIES, L.P. AS BORROWER,

                     THE LENDERS LISTED THEREIN, AS LENDERS,

                 BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT,

       FLEET NATIONAL BANK (AS SUCCESSOR IN INTEREST TO BANKBOSTON N.A.),
                   AS CO-LEAD AGENT AND SYNDICATION AGENT, AND

               FIRST UNION NATIONAL BANK, AS DOCUMENTATION AGENT.

                                       1
<PAGE>   2

                             AIMCO PROPERTIES, L.P.

                      AMENDED AND RESTATED CREDIT AGREEMENT

         This AMENDED AND RESTATED CREDIT AGREEMENT (this "AMENDMENT") is dated
as of March 15, 2000 (the "AMENDMENT EFFECTIVE DATE") and entered into by and
among AIMCO PROPERTIES, L.P., a Delaware limited partnership ("BORROWER"), the
financial institutions listed on the signature pages hereof (collectively,
"LENDERS" and individually a "LENDER") and BANK OF AMERICA, N.A. ("BANK OF
AMERICA"), as Administrative Agent (in such capacity, "ADMINISTRATIVE AGENT"),
Issuing Lender and a Co-Lead Agent, FLEET NATIONAL BANK (as successor in
interest to BankBoston, N.A.) ("FLEET"), as a Lender, a Co-Lead Agent, and
Syndication Agent, and FIRST UNION NATIONAL BANK ("First Union"), as a Lender
and Documentation Agent, and is made with reference to that certain Credit
Agreement dated as of August 16, 1999 (as amended by this Amendment, the "CREDIT
AGREEMENT"), by and among Borrower, Lenders and Administrative Agent.
Capitalized terms used in this Amendment shall have the meanings set forth in
the Credit Agreement unless otherwise defined. The Guarantor Subsidiaries set
forth on pages S-11 through S-19 are only parties to this Amendment for the
purposes of Section 4 and are not a party to the Credit Agreement.

                                     RECITAL

         WHEREAS, Borrower and Lenders desire to amend and restate the Credit
Agreement to, among other things, increase the Combined Commitments by
$45,000,000 as of the date hereof, and to provide for the further increase of
the Combined Commitments up to an additional $55,000,000 as provided in Section
1.2 hereof, all as more particularly set forth below;

         NOW, THEREFORE, in consideration of the agreements, provisions and
covenants herein contained, the parties hereto agree as follows:

SECTION 1. AMENDMENTS TO THE CREDIT AGREEMENT

1.1      AMENDMENT TO SUBSECTION 1.01: DEFINED TERMS.

         A. Subsection 1.01 of the Credit Agreement is hereby further amended by
deleting, in their entirety, the definitions of the terms listed below and
inserting the following in lieu thereof:

                  "COMBINED COMMITMENTS" has the meaning assigned to such term
                  in the definition of "Commitment". The Combined Commitments
                  are $345,000,000, and are subject to increase in accordance
                  with Section 2.14 below.

                  "PRO RATA SHARE" means, with respect to each Lender, the
                  percentage of the Combined Commitments set forth opposite the
                  name of that Lender on Schedule 2.01, as may be amended from
                  time to time.

                                       2
<PAGE>   3

1.2      AMENDMENT TO SUBSECTION 2.14: THE COMMITMENTS AND EXTENSIONS OF CREDIT;
         INCREASE IN COMMITMENTS.

         A. Subsection 2.14 of the Credit Agreement shall be deleted in its
entirety and replaced with the following:

                  2.14 INCREASE IN COMBINED COMMITMENTS. As of the Amendment
         Effective Date, the Combined Commitments will be $345,000,000;
         provided, however, that from and after the Amendment Effective Date,
         with the consent of Administrative Agent and Borrower only, new Lenders
         may be added to this Agreement and/or existing Lenders may choose to
         increase their individual Commitment, such that the Combined
         Commitments may be increased up to a maximum of $400,000,000.

                   (a) Each of the Lenders acknowledges and agrees that,
         notwithstanding anything to the contrary in Section 10.01, their
         consent to any such increase in the Combined Commitments shall not be
         required and additional Lenders may be added to this Agreement, and any
         existing Lender under this Agreement may increase its Commitment
         without the consent or agreement of the other Lenders (provided,
         however, that no Lender's individual Commitment may be increased
         without such Lender's consent); so long as Administrative Agent and
         Borrower have consented in writing to such new Lenders or the increase
         in the Commitment of any of the existing Lenders, as applicable.

                  (b) Administrative Agent shall not unreasonably withhold its
         consent to Borrower's request for an increase in the Combined
         Commitments under this Subsection, provided that each of the following
         must be satisfied:

                           (i) any proposed new Lender must be acceptable to
                  Administrative Agent in its sole discretion;

                           (ii) Borrower shall pay a fee for such increase which
                  must be acceptable to Administrative Agent in its sole
                  discretion; and

                           (iii) all requirements of this Section 2.14 must be
                  satisfied.

                  (c) The addition of any new Lender to this Agreement, or the
         increase in the Commitment of any existing Lender, shall be effective
         upon the satisfaction of the following:

                           (i) Administrative Agent shall have sent written
                  notice of such new Lender or increase in the Commitment of any
                  existing Lender to the other Lenders hereunder, together with
                  notice of such new Lender's Commitment or such existing
                  Lender's increase in its Commitment;

                                       3
<PAGE>   4

                           (ii) Administrative Agent and Borrower shall
                  determine the effective date of such increase (the "INCREASE
                  EFFECTIVE DATE"), and Administrative Agent shall promptly
                  notify Lenders thereof. On or prior to the Increase Effective
                  Date:

                                    (1) Borrower shall have executed and
                           delivered to Administrative Agent a new Committed
                           Loan Note with respect to any new or existing Lender
                           in the amount of such Lender's Commitment;

                                    (2) Borrower shall have delivered a
                           certificate signed by a Responsible Officer stating
                           that (i) the representations and warranties contained
                           in Section 5 are true and correct on and as of the
                           date of such certificate, and (ii) no Default or
                           Event of Default exists;

                                    (3) Borrower shall deliver to Administrative
                           Agent, in form and substance satisfactory to
                           Administrative Agent, corporate resolutions and
                           incumbency certificates of Borrower and any Guarantor
                           dated as of the Increase Effective Date approving
                           such increase and in sufficient copies for each
                           Lender;

                                    (4) Administrative Agent shall distribute an
                           amended Schedule 2.01 (which shall thereafter be
                           incorporated into this Agreement) to reflect any
                           changes in Lenders, the Combined Commitments, the
                           Commitments and each Lender's Pro Rata Share thereof;

                                    (5) with respect to (a) new Lenders under
                           this Agreement, each new Lender shall acknowledge in
                           writing (in a form satisfactory to Administrative
                           Agent) that it is assuming the rights and obligations
                           of a "Lender" under this Agreement; and (b) existing
                           Lenders that increase their Commitment, each such
                           existing Lender shall acknowledge in writing (in a
                           form satisfactory to Administrative Agent) the
                           increased amount of such existing Lender's increased
                           Commitment; and

                                    (6) Borrower, and each new Lender and each
                           existing Lender increasing its Commitment, shall
                           execute and deliver to Administrative Agent such
                           additional documents as Administrative Agent and its
                           legal counsel shall reasonably require to carry out
                           the intent of this Section 2.14.

1.3      AMENDMENT TO SECTION 7.14: NEGATIVE COVENANTS; FINANCIAL COVENANTS.

         A. Subsection 7.14(a) shall be deleted in its entirety and replaced
with the following:

                  (a) Permit the Fixed Charge Coverage Ratio as of the end of
         any fiscal quarter ending during any period set forth below to be less
         than the following ratios during the applicable periods:

                                       4
<PAGE>   5

<TABLE>
<CAPTION>
        -------------------------------------------------------------------------------------------------------------
        APPLICABLE PERIOD                                                     RATIO
        -------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>
        Closing Date to and including September 30, 1999                      1.70:1.00
        -------------------------------------------------------------------------------------------------------------
        October 1, 1999 to and including December 31, 1999                    1.75:1.00
        -------------------------------------------------------------------------------------------------------------
        January 1, 2000 to and including December 31, 2000                    1.70:1.00
        -------------------------------------------------------------------------------------------------------------
        January 1, 2001 and thereafter                                        1.75:1.00
        -------------------------------------------------------------------------------------------------------------
</TABLE>

1.4      AMENDMENT TO SECTION 10.12: MISCELLANEOUS; SURVIVAL OF REPRESENTATIONS
         AND WARRANTIES.

         A. Subsection 10.12 shall be deleted in its entirety and replaced with
the following:

                  10.12    SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

                  All representations and warranties made hereunder and in any
         Loan Document, certificate or statement delivered pursuant hereto or
         thereto or in connection herewith or therewith shall survive the
         execution and delivery thereof but shall terminate on the later of (a)
         when the Commitments are terminated and (b) when no Obligations remain
         outstanding under any Loan Document. Provided, however, notwithstanding
         anything in this Agreement or implied by law to the contrary, the
         agreements of Borrower set forth in Section 3 and Subsections 10.03,
         10.05, 10.13, and 10.14 and the agreements of Lenders set forth in
         Subsections 9.03, 9.07 and 10.06 shall survive the payment of the other
         Obligations and the termination of this Agreement.

1.5      AMENDMENT TO SCHEDULES.

         A. Schedule 2.01 shall be deleted in its entirety and replaced with
that attached hereto.

SECTION 2. CONDITIONS TO EFFECTIVENESS

                  This Amendment shall become effective on the Amendment
Effective Date, if each of the following conditions are satisfied:

         A. Borrower has delivered to Lenders (or to Administrative Agent for
Lenders with sufficient originally executed copies, where appropriate, for each
Lender and its counsel) executed copies of this Amendment dated as of the
Amendment Effective Date;

         B. Guarantor Subsidiaries have executed this Amendment with respect to
Section 4;

         C. Borrower shall have executed new Committed Loan Notes for any Lender
whose Commitment increases pursuant to this Amendment dated as of the Amendment
Effective Date and in an amount equal to such Lender's Commitment;

                                       5
<PAGE>   6

         D. On or before the Amendment Effective Date, Borrower has paid to
Administrative Agent an amendment fee in the amount of $300,000 and a commitment
fee calculated as provided below. The amendment fee will be distributed among
all Lenders who are party to the Credit Agreement on the Amendment Effective
Date based upon the Pro Rata Shares in existence immediately before the
Amendment Effective Date. The commitment fee will be an aggregate amount equal
to $168,750, and will be distributed among each Lender party to the Credit
Agreement immediately before the Amendment Effective Date which increases its
Commitment pursuant to this Amendment, in an amount equal to 37.5 basis points
times the amount of such increase;

         E. Borrower shall have delivered a certificate, satisfactory to Agent,
signed by a Responsible Officer stating that (i) the representations and
warranties contained in Section 5 are true and correct on and as of the
Amendment Effective Date, and (ii) no Default or Event of Default then exists,
and no Default or Event of Default will result from the consummation of the
transactions contemplated by this Amendment;

         F. If required by Administrative Agent, Lenders and their respective
counsel shall have received originally executed copies of one or more favorable
written opinions of counsel for Borrower and the Guarantor Subsidiaries in form
and substance reasonably satisfactory to Administrative Agent and its counsel,
dated as of the Amendment Effective Date, with respect to the validity, binding
effect and enforceability of this Amendment, and due authorization, execution
and delivery thereof, and as to such other matters as Administrative Agent
acting on behalf of Lenders may reasonably request; and

         G. Borrower shall have paid the reasonable fees, costs and expenses of
Administrative Agent's counsel in connection with this Amendment.

SECTION 3. BORROWER'S REPRESENTATIONS AND WARRANTIES

                  In order to induce Lenders to enter into this Amendment and to
amend the Credit Agreement in the manner provided herein, Borrower represents
and warrants to each Lender that the following statements are true, correct and
complete:

         A. CORPORATE POWER AND AUTHORITY. Borrower has all requisite corporate
power and authority to enter into this Amendment and any other agreements,
guaranties or other operative documents to be delivered pursuant to this
Amendment, to carry out the transactions contemplated by, and perform its
obligations under, the Credit Agreement. Each of the Borrower, the REIT and the
Guarantor Subsidiaries are in good standing in the respective states of their
organization on the Amendment Effective Date.

         B. AUTHORIZATION OF AGREEMENTS. The execution and delivery of this
Amendment and the performance of the Credit Agreement have been duly authorized
by all necessary corporate action on the part of Borrower and the other parties
delivering any of such documents, as the case may be. The organizational
documents of the Borrower, the REIT and the Guarantor Subsidiaries have not been
modified in any material respect since August 16, 1999.

                                       6
<PAGE>   7

         C. NO CONFLICT. The execution and delivery by Borrower and the
Guarantor Subsidiaries of this Amendment and the performance by Borrower of the
Credit Agreement by Borrower do not and will not (i) violate any provision of
any law or any governmental rule or regulation applicable to Borrower or any of
its Subsidiaries, their respective Organization Documents or any order, judgment
or decree of any court or other agency of government binding on Borrower, the
REIT or any of their Subsidiaries, (ii) conflict with, result in a breach of or
constitute (with due notice or lapse of time or both) a default under any
Contractual Obligation of Borrower, the REIT or any of their Subsidiaries, (iii)
result in or require the creation or imposition of any Lien upon any of the
properties or assets of Borrower, the REIT or any of their Subsidiaries, or (iv)
require any approval of stockholders or any approval or consent of any Person
under any Contractual Obligation of Borrower, the REIT or any of their
Subsidiaries.

         D. GOVERNMENTAL CONSENTS. The execution and delivery by Borrower and
the Guarantor Subsidiaries of this Amendment and the performance by Borrower and
the Guarantor Subsidiaries under the Credit Agreement do not and will not
require any registration with, consent or approval of, or notice to, or other
action to, with or by, any federal, state or other governmental authority or
regulatory body.

         E. BINDING OBLIGATION. The Credit Agreement, as amended by this
Amendment, has been duly executed and delivered by Borrower and the Guarantor
Subsidiaries, as applicable, and is enforceable against Borrower and/or the
Guarantor Subsidiaries, as applicable, in accordance with its respective terms,
except as may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws relating to or limiting creditors' rights generally or by
equitable principles relating to enforceability.

         F. INCORPORATION OF REPRESENTATIONS AND WARRANTIES FROM CREDIT
AGREEMENT. The representations and warranties contained in Section 5 of the
Credit Agreement are and will be true, correct and complete in all material
respects on and as of the Amendment Effective Date to the same extent as though
made on and as of such date, except representations and warranties solely to the
extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

SECTION 4. ACKNOWLEDGEMENT AND CONSENT

                  Guarantor Subsidiaries are party to that certain Payment
Guaranty of REIT and of Preferred Stock Subsidiaries dated August 16, 1999 and
that certain Payment Guaranty of Non-Preferred Stock Subsidiaries dated August
16, 1999, in each case as amended at even date herewith, pursuant to which
Guarantor Subsidiaries have guarantied the Obligations. Nothing in this Section
4 shall be construed to make the Guarantor Subsidiaries a party to the Credit
Agreement or to create any obligation in respect thereof except pursuant to each
Guaranty.

                  Each Guarantor Subsidiary hereby acknowledges that it has
reviewed the terms and provisions of the Credit Agreement and this Amendment and
consents to the amendment of

                                       7
<PAGE>   8

the Credit Agreement effected pursuant to this Amendment. Each Guarantor
Subsidiary hereby confirms that each Guaranty to which it is a party or
otherwise bound will continue to guaranty or secure, as the case may be, to the
fullest extent possible the payment and performance of all of the "Indebtedness"
(as defined in the applicable Guaranty), including without limitation the
payment and performance of all such "Indebtedness," as the case may be, with
respect to the Obligations of Borrower now or hereafter existing under or in
respect of the Credit Agreement (as amended hereby) and the Notes defined
therein.

                  Each Guarantor Subsidiary acknowledges and agrees that any
Guaranty to which it is a party or otherwise bound shall continue in full force
and effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or
effectiveness of this Amendment. Each Guarantor Subsidiary represents and
warrants that all representations and warranties contained in the Credit
Agreement and the Guaranty to which it is a party or otherwise bound are true,
correct and complete in all material respects on and as of the Amendment
Effective Date to the same extent as though made on and as of that date, except
to the extent such representations and warranties specifically relate to an
earlier date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

                  Each Guarantor Subsidiary acknowledges and agrees that (i)
notwithstanding the conditions to effectiveness set forth in this Amendment,
such Guarantor Subsidiary is not required by the terms of the Credit Agreement
or any other Loan Document to consent to the amendments to the Credit Agreement
effected pursuant to this Amendment and (ii) nothing in the Credit Agreement,
this Amendment or any other Loan Document shall be deemed to require the consent
of such Guarantor Subsidiary to any future amendments to the Credit Agreement.

SECTION 5. MISCELLANEOUS

         A. REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS.

                  (i) On and after the Amendment Effective Date, each reference
         in the Credit Agreement to "this Agreement", "hereunder", "hereof",
         "herein" or words of like import referring to the Credit Agreement, and
         each reference in the other Loan Documents to the "Credit Agreement",
         "thereunder", "thereof" or words of like import referring to the Credit
         Agreement shall mean and be a reference to the Credit Agreement, as
         amended by this Amendment.

                  (ii) Except as specifically amended by this Amendment, the
         Credit Agreement and the other Loan Documents shall remain in full
         force and effect and are hereby ratified and confirmed.

                  (iii) The execution, delivery and performance of this
         Amendment shall not, except as expressly provided herein, constitute a
         waiver of any provision of, or operate as a waiver of any right, power
         or remedy of Administrative Agent or any Lender under, the Credit

                                       8
<PAGE>   9

         Agreement or any of the other Loan Documents.

         B. FEES AND EXPENSES. Borrower acknowledges that all reasonable costs,
fees and expenses incurred by Administrative Agent and its counsel with respect
to this Amendment and the documents and transactions contemplated hereby shall
be for the account of Borrower.

         C. HEADINGS. Section and subsection headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose or be given any substantive effect.

         D. COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but
all such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document. This Amendment shall become effective upon the execution of a
counterpart hereof by Borrower and the Requisite Lenders, and receipt by
Borrower and Administrative Agent of written, facsimile or telephonic
notification of such execution and authorization of delivery thereof.

                 [Signatures on Attached Pages S-1 through S-10]

                                        9
<PAGE>   10

                                  SCHEDULE 2.01

                         COMMITMENTS AND PRO RATA SHARES
                      (AS OF THE AMENDMENT EFFECTIVE DATE)

<TABLE>
<CAPTION>
=====================================================================================================================
                LENDER                                COMMITMENT                           PRO RATA SHARE
---------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                                     <C>
Bank of America, N.A.                                $ 55,000,000                            15.942028986%
---------------------------------------------------------------------------------------------------------------------
Fleet National Bank                                  $ 50,000,000                            14.492753623%
---------------------------------------------------------------------------------------------------------------------
First Union National Bank                            $ 45,000,000                            13.043478261%
---------------------------------------------------------------------------------------------------------------------
U.S. Bank                                            $ 40,000,000                            11.594202899%
---------------------------------------------------------------------------------------------------------------------
The Bank of Nova Scotia                              $ 40,000,000                            11.594202899%
---------------------------------------------------------------------------------------------------------------------
Chase Manhattan                                      $ 35,000,000                            10.144927536%
---------------------------------------------------------------------------------------------------------------------
KeyBank                                              $ 30,000,000                             8.695652174%
---------------------------------------------------------------------------------------------------------------------
SouthTrust Bank                                      $ 25,000,000                             7.246376812%
---------------------------------------------------------------------------------------------------------------------
California Bank & Trust                              $ 25,000,000                             7.246376812%
---------------------------------------------------------------------------------------------------------------------
TOTALS                                               $345,000,000                           100.000000000%
=====================================================================================================================
</TABLE>

                                       10
<PAGE>   11

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the day and year first written above.

                                       BORROWER

                                       AIMCO PROPERTIES, L.P.,
                                       a Delaware limited partnership

                                       By: AIMCO - GP, INC.,
                                           a Delaware corporation, its
                                           general partner

                                       By: /s/ PETER K. KOMPANIEZ
                                           Peter K. Kompaniez
                                           President

                                       Notices to be sent to:

                                       2000 South Colorado Boulevard
                                       Tower 2, Suite 2-1000
                                       Denver, Colorado 80222
                                       Attention: Paul McAuliffe
                                       Executive Vice President & Chief
                                        Financial Officer
                                       Facsimile: (303) 691-4317

                                       S-11
<PAGE>   12

                                   BANK OF AMERICA

                                   BANK OF AMERICA, N.A.,
                                   as a Lender and as the Issuing Lender

                                   By: /s/ MARK GREGOR-PEARSE
                                   Name:  Mark Gregor-Pearse
                                   Title:    Principal

                                   BANK OF AMERICA, N.A.,
                                   as Administrative Agent

                                   By: /s/ MARK GREGOR-PEARSE
                                   Name:  Mark Gregor-Pearse
                                   Title:    Principal

                                      S-12
<PAGE>   13

                             FLEET NATIONAL BANK,
                             as  Lender, Co-Lead Agent and Syndication Agent

                             By: /s/ KATHLEEN M. AHERN
                             Name:  Kathleen M. Ahern
                             Title:    Vice President

                                      S-13
<PAGE>   14

                                       FIRST UNION NATIONAL BANK,
                                       as a Lender and Documentation Agent

                                       By: /s/ REX RUDY
                                       Name:  Rex Rudy
                                       Title: Vice President

                                      S-14
<PAGE>   15

                                      CALIFORNIA BANK & TRUST, a California
                                      banking corporation, as a Lender

                                      By: /s/ EILEEN E. PORTER
                                         --------------------------------
                                         Name:  Eileen E. Porter
                                         Title: Vice President

                                      S-15
<PAGE>   16

                                      THE CHASE MANHATTAN BANK, a New York
                                      banking corporation, as a Lender

                                      By: /s/ ALAN C. BREINDEL
                                         --------------------------------
                                         Name:  Alan C. Breindel
                                         Title: Managing Director

                                      S-16
<PAGE>   17

                                      KEYBANK NATIONAL ASSOCIATION, as a Lender

                                      By: /s/ DAN HERBLE
                                         --------------------------------
                                         Name: Daniel R. Herble
                                         Title: Vice President

                                      S-17
<PAGE>   18

                                      THE BANK OF NOVA SCOTIA, acting through
                                      its San Francisco Agency, as a Lender

                                      By: /s/ ABID GILANI
                                         --------------------------------
                                         Name: Abid Gilani
                                         Title: Director

                                      S-18
<PAGE>   19

                                      SOUTHTRUST BANK, N.A., as a Lender

                                      By:   /s/ SAMUEL L. BOROUGHS
                                           --------------------------------
                                         Name:  Samuel L. Boroughs
                                         Title: Assistant Vice President

                                      S-19
<PAGE>   20

                                    U.S. BANK NATIONAL ASSOCIATION, as a Lender

                                    By:   /s/ D. PETRE
                                           --------------------------------
                                         Name:  D. Petre
                                         Title: Vice President

                                      S-20
<PAGE>   21

The undersigned Guarantor Subsidiaries hereby execute this Amendment solely for
the purposes of acknowledging the same and consenting thereto in accordance with
Section 4 thereof.

REIT AND PREFERRED STOCK SUBSIDIARIES:

APARTMENT INVESTMENT AND
MANAGEMENT COMPANY

By: /s/ PETER K. KOMPANIEZ
   -------------------------------------
   Peter K. Kompaniez
   President

AIMCO/NHP HOLDINGS, INC.

By: /s/ PETER K. KOMPANIEZ
   -------------------------------------
   Peter K. Kompaniez
   President

NHP A&R SERVICES, INC.

By: /s/ PETER K. KOMPANIEZ
   -------------------------------------
   Peter K. Kompaniez
   President

NHP MANAGEMENT COMPANY

By: /s/ THOMAS TOOMEY
   -------------------------------------
   Thomas Toomey
   President

                                      S-21
<PAGE>   22

NON-PREFERRED STOCK SUBSIDIARIES
--------------------------------

         AIMCO Anchorage, L.P.
         AIMCO Bay Club, L.P.
         AIMCO Bridgewater, L.P.
         AIMCO Copperfield, L.P.
         AIMCO Crows Nest, L.P.
         AIMCO Group, L.P.
         AIMCO Hampton Hill, L.P.
         AIMCO Hastings Place, L.P.
         AIMCO LT, L.P.
         AIMCO Oak Falls, L.P.
         AIMCO Park at Cedar Lawn, L.P.
         AIMCO Peppermill Place, L.P.
         AIMCO Recovery Fund, L.P.
         AIMCO Seaside Point, L.P.
         AIMCO Signature Point, L.P.
         AIMCO Stirling Court, L.P.
         AIMCO Sunbury, L.P.
         AIMCO Township at Highlands, L.P.
         AIMCO UT, L.P.
         AIMCO West Trails, L.P.

         By:      AIMCO Holdings, L.P., as their general partner

                  By:      AIMCO Holdings QRS, Inc., its
                           general partner

                           By: /s/ PETER K. KOMPANIEZ
                              ------------------------------
                              Peter K. Kompaniez
                              President

                                      S-22
<PAGE>   23

         AIMCO Bay Club II, L.P.

         By:      AIMCO Bay Club, L.P., its general partner

                  By:      AIMCO Holdings, L.P., as their general partner

                           By:      AIMCO Holdings QRS, Inc., its
                                    general partner

                                    By: /s/ PETER K. KOMPANIEZ
                                       ------------------------------
                                       Peter K. Kompaniez
                                       President

         AIMCO Holdings, L.P.

         By:      AIMCO Holdings QRS, Inc., its
                  general partner

                           By: /s/ PETER K. KOMPANIEZ
                              ------------------------------
                              Peter K. Kompaniez
                              President

         Ambassador CRM Florida Partners, L.P.

         By:      Ambassador Florida Partners Limited Partnership, as its
                  general partner

                  By:      Ambassador Florida Partners, Inc., as its
                           general partner

                           By: /s/ PETER K. KOMPANIEZ
                              ------------------------------
                              Peter K. Kompaniez
                              President

                                      S-23
<PAGE>   24

         Ambassador I, L.P.

         By:      Ambassador I, Inc., its general partner

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

         Ambassador II, L.P.

         By:      Ambassador II, Inc., its general partner

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

         Ambassador VIII, L.P.

         By:      Ambassador VIII, Inc., its general partner

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

         Ambassador IX, L.P.

         By:      Ambassador IX, Inc., its general partner

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

                                      S-24
<PAGE>   25

         Ambassador Apartments, L.P.
         Property Asset Management Services, L.P.

         By:      AIMCO Properties, L.P., as their general partner

                  By:      AIMCO-GP, Inc., its general partner

                           By: /s/ PETER K. KOMPANIEZ
                              ------------------------------
                              Peter K. Kompaniez
                              President

         Ambassador X, L.P.

         By:      Ambassador X, Inc., its general partner

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

         Williamsburg L.P.

         By:      Ambassador IX, L.P.., its general partner

                  By:      Ambassador IX, Inc., its general partner

                           By: /s/ PETER K. KOMPANIEZ
                              ------------------------------
                              Peter K. Kompaniez
                              President

                                      S-25
<PAGE>   26

         Property Asset Management Services-California, LLC

         By:      Property Asset Management Services, L.P., its managing
                  general partner

                  By:      AIMCO Properties, L.P., its general partner

                           By:      AIMCO-GP, Inc., its general partner

                                    By: /s/ PETER K. KOMPANIEZ
                                       ------------------------------
                                       Peter K. Kompaniez
                                       President

         NHP Congress Management L.P.

                  By:      NHP-HG Six, Inc., its general partner

                           By: /s/ PETER K. KOMPANIEZ
                              ------------------------------
                              Peter K. Kompaniez
                              President

         NPI-AP Management, L.P.

         By:      NPI Property Management Corporation, its
                  general partner

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

                                      S-26
<PAGE>   27
         AIMCO Residential Group, L.P.

         By:      AG Management, L.L.C., its general partner

                  By:      NHP Management Company, its
                           managing member

                           By: /s/ THOMAS TOOMEY
                              ------------------------------
                              Thomas Toomey
                              President

         Insignia Properties, L.P.

         By:      AIMCO/IPT, Inc., its general partner

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

         AIMCO Calhoun, Inc.
         AIMCO Holdings QRS, Inc.
         AIMCO LJ Tucson, Inc.
         AIMCO Properties Finance Corp.
         AIMCO Somerset, Inc.
         AIMCO/Brant Rock, Inc.
         AIMCO/Beacon Hill, Inc.
         AIMCO/Blossomtree, Inc.
         AIMCO/Colonnade, Inc.
         AIMCO/Foothills, Inc.
         AIMCO/Foxbay, Inc.
         AIMCO/Foxtree, Inc.
         AIMCO/Freedom Place, Inc.
         AIMCO/Grovetree, Inc.
         AIMCO/Hazeltree, Inc.
         AIMCO/Hiddentree, Inc.
         AIMCO/IPT, Inc.
         AIMCO/Islandtree, Inc.
         AIMCO/Olmos, Inc.
         AIMCO/Orchidtree, Inc.
         AIMCO/OTC QRS, Inc.
         AIMCO/Pine Creek, Inc.
         AIMCO/Polo Park, Inc.

                                      S-27
<PAGE>   28

         AIMCO/Quailtree, Inc.
         AIMCO/Rivercrest, Inc.
         AIMCO/Sand Castles, Inc.
         AIMCO/Sand Pebble, Inc.
         AIMCO/Shadetree, Inc.
         AIMCO/Shadow Lake, Inc.
         AIMCO/Silktree, Inc.
         AIMCO/Surrey Oaks, Inc.
         AIMCO/Tall Timbers, Inc.
         AIMCO/The Hills, Inc.
         AIMCO/Timbertree, Inc.
         AIMCO/Twinbridge, Inc.
         AIMCO/Wickertree, Inc.
         AIMCO/Wildflower, Inc.
         AIMCO/Windsor Landing, Inc.
         AIMCO/Woodhollow, Inc.
         AIMCO/Wydewood, Inc.
         AIMCO/Yorktree, Inc.
         AIMCO-LP, Inc.
         AIMCO-GP, Inc.
         Ambassador I, Inc.
         Ambassador II, Inc.
         Ambassador IV, Inc.
         Ambassador V, Inc.
         Ambassador VIII, Inc.
         Ambassador Texas, Inc.
         Ambassador X, Inc.
         Ambassador XI, Inc.
         Ambassador Florida Partners Inc.
         Angeles Realty Corporation II
         NHP Multi-Family Capital Corporation
         NHP Real Estate Corporation
         A.J. Two, Inc.
         AIMCO Equity Services, Inc.
         NHP Texas Management Company
         NHP Puerto Rico Management Company
         NHP Florida Management Company
         NHP Maintenance Services Company
         NHP-HDV Ten, Inc.
         NHP-HDV Fourteen, Inc.
         NHP-HDV Sixteen, Inc.
         NHP-HDV 20, Inc.
         NHP-HS Two, Inc.

                                      S-28
<PAGE>   29

         Broadstreet Management, Inc.
         Rescorp Realty, Inc.
         Preferred Home Health, Inc.
         Security Management, Inc.
         Insignia Residential Group of Alabama, Inc.
         Insignia Residential Group of California, Inc.
         Insignia Residential Group of Texas, Inc.
         DBL Properties Corporation
         Colony of Springdale Properties, Inc.
         SF General, Inc.
         CPF XIV/St. Charleston, Inc.
         CPF XIV/Torrey Pines, Inc.
         CPF XIV/Sun River, Inc.
         CPF XIV/Lakeside Place, Inc.
         ConCap CCP/IV Stratford Place Properties, Inc.
         ConCap CCP/IV River's Edge Properties, Inc.
         ConCap Equities, Inc.
         ConCap Holdings, Inc.
         PRA, Inc.
         National Property Investors, Inc.

                  By: /s/ PETER K. KOMPANIEZ
                     ------------------------------
                     Peter K. Kompaniez
                     President

                                      S-29
<PAGE>   30

         Address Where Notices are to be Sent:

                  To Guarantor:              2000 South Colorado Boulevard
                                             Tower 2, Suite 2-1000
                                             Denver, Colorado 80222

                  To Administrative Agent:   BANK OF AMERICA, N.A.
                                             CA9-706-06-02
                                             555 South Flower Street, 6th Floor
                                             Los Angeles, California 90071
                                             Attention: Manager - Unit #1313

                  To Lenders:                Per the Credit Agreement

                                      S-30<PAGE>   1
                                                                   Exhibit 10.11

January 22, 1999 (Revised)

Armen Der Marderosian
[Address]
[Address]

Dear Armen:

         I want to personally let you know how much your many contributions to
GTE and your valued leadership have been appreciated. In light of those
accomplishments and your agreement to take on the role of assisting GTE in
connection with the divestiture of Government Systems (the "Galaxy
Transaction"), I want to provide you with an appropriate transition arrangement
in connection with your departure from GTE. This letter (the "Letter Agreement")
sets out the terms of that arrangement.

A.       CONTINUED EMPLOYMENT AND SEPARATION

         1. SPECIAL ASSIGNMENT PERIOD. From the effective date of this Letter
Agreement through the later of (a) successful completion of a divestiture of all
or substantially all of the assets of Government Systems ("Transaction
Completion") or the decision of the Board of Directors of GTE Corporation to
terminate divestiture efforts, or (b) shareholder approval or termination of the
proposed merger between Bell Atlantic Corporation and GTE (the "Merger"), you
will have primary responsibility for the Galaxy Transaction and will perform
such other duties as directed by me. During this period, referred to as the
"Special Assignment Period," you will remain at your current salary level. In
the event that neither Transaction Completion nor shareholder approval of the
Merger occurs, GTE will provide you with a transition arrangement, the terms of
which will be decided at that time but which will provide benefits which are, at
a minimum, equivalent to those otherwise available to you under GTE's
Involuntary Separation Program ("ISEP") as then in effect.

         2. SEPARATION BENEFITS. You will irrevocably terminate your employment
with GTE upon conclusion of the Special Assignment Period. If shareholder
approval of the Merger has occurred at that time, you will receive separation
benefits as set forth in, and in accordance with the terms of, your Executive
Severance Agreement. If shareholder approval has not occurred and you do not
become a "Transferred Employee" (as such term is defined in ISEP) after
completion of the Galaxy Transaction, you will be eligible to receive separation
benefits in accordance with the terms of ISEP or any successor plan which may
exist. Of course, if shareholder approval has not occurred and you become a
Transferred Employee, you will not be eligible for ISEP benefits. You will also
receive a lump sum payment for all accrued, unused (but unpaid) vacation upon
the termination of your employment with GTE, but you will not receive service
credit for same.

<PAGE>   2
Armen Der Marderosian
January 22, 1999 (Revised)
Page 2

         3. EIP. You will continue to participate in GTE's Executive Incentive
Plan ("EIP"), or any successor plan which may exist, during the Special
Assignment Period on the same basis as other executives at your level, subject
to the terms of that plan. If your EIP payment for the year in which you
separate from employment has not been paid out as a result of shareholder
approval of the Merger, your award for that year will be prorated based on the
number of calendar months of service you completed in that year. Any amount to
which you are entitled under EIP will be payable at the same time payments are
made to other EIP participants. The Executive Compensation and Organizational
Structure Committee of the Board of Directors of GTE, its designee, its
successor or its successor's designee (the "ECC") will determine the amount of
your actual awards. You will be eligible to defer your EIP award, but you will
not receive a match for those amounts under the company's Equity Participation
Program ("EPP").

         4. LTIP. You will continue to participate in GTE's Long Term Incentive
Plan ("LTIP"), or any successor plan that may exist, on the same terms as other
executives at your level during the Special Assignment Period. In the event of
shareholder approval of the Merger, outstanding options will vest and
Performance Bonus Awards will be paid out in accordance with the terms of your
Award Agreements. Following, or in the absence of, shareholder approval, any
outstanding stock options under LTIP will vest immediately upon your separation
from employment, and you will have two years or longer to exercise those
options, subject to the terms of and any restrictions established by the option
agreements. Outstanding LTIP cash awards that have not been paid out as a result
of the shareholder approval of the Merger will be prorated to reflect the number
of actual full months of service you completed in the outstanding cycles. All
payments under LTIP will be paid at the same time payments are made to other
participants. The ECC will determine the amount of your actual awards. You will
be eligible to defer your award, but you will not receive a match under the
company's EPP.

         5. TERMINATION OF EMPLOYMENT. In accordance with company policy, GTE
reserves the right to terminate your employment prior to the end of the Special
Assignment Period for Cause, which, for purposes of this Letter Agreement, will
be as determined by your supervisor at the time with the concurrence of the
Executive Vice President - Human Resources and Administration or his successor.
If you are discharged for Cause, elect to resign or retire, or die or become
disabled (within the meaning of GTE's Long Term Disability Plan) prior to the
expiration of the Special Assignment Period, all further obligations under this
Letter Agreement shall cease (except for, in the case of termination due to
death or disability, your right to any prorated Transaction Completion Bonus or
Partial Bonus as provided for below), and you will not be entitled to separation
benefits under this Letter Agreement.

<PAGE>   3
Armen Der Marderosian
January 22, 1999 (Revised)
Page 3

B.       TRANSACTION COMPLETION BONUS

         1. TRANSACTION COMPLETION BONUS. Subject to the conditions set out
herein, on or about 45 days following the Transaction Completion, you will
receive a special "Transaction Completion Bonus" equal (before withholding of
applicable taxes) to an amount as set forth in either paragraph (a) or (b)
below.

                  (a) One and one-half times the sum of (i) your base annual
salary as of Transaction Completion and (ii) the prior three-year average
corporate rating under EIP (as of Transaction Completion) for your grade level
multiplied by an amount equal to 100% of norm for that grade level; or

                  (b) As set out in the chart below, a bonus based on the
established minimum, target, and maximum sales price for Government Systems (as
determined by the Galaxy Transaction documents). If the sales price falls
between minimum and target or target and maximum, the bonus will be calculated
using linear interpolation (see Attachment A).

<TABLE>
<CAPTION>
                                                                                         Estimated
         Sales Price                     Bonus Formula                                    Bonus*
         ------------------------------------------------------------------------------------------
         <S>                           <C>                                               <C>
         Minimum ($980,000,000         One times base pay                               $  390,000
           or less)
         Target ($1.3 Billion)         1.5 times base and bonus                         $1,044,196
         Maximum ($1.6 Billion         2.5 times base and bonus                         $1,673,660
           or greater)
</TABLE>

         *Actual based on prior three-year average corporate rating (currently
         estimated at 146.7) times norm in place upon Transaction Completion.

         At the time you execute this Letter Agreement, you must make an
irrevocable election as to which formula you want to be used to calculate your
potential bonus. If you do not make an election at the time you execute this
Letter Agreement, you will be eligible solely for the bonus set forth in
paragraph B(1)(a) above.

         2. PARTIAL BONUS. In the event that the Board of Directors of GTE
Corporation decides to terminate efforts to divest all or substantially all of
the assets of Government Systems, on or about 45 days from the date of that
decision (the "Termination Date"), you will receive a special bonus (a "Partial
Bonus") equal, before withholding of applicable taxes, to 25% of the Transaction
Completion Bonus you would have received under option B(1)(a), above, if the
Transaction Completion had occurred on the Termination Date.

         3. INVOLUNTARY TERMINATION WITHOUT CAUSE. If, prior to Transaction
Completion or, if applicable, the Termination Date, your employment is
terminated

<PAGE>   4
Armen Der Marderosian
January 22, 1999 (Revised)
Page 4

involuntarily without Cause and for reasons other than your death or disability,
you will receive a payment equal to the Transaction Completion Bonus, or, as the
case may be, Partial Bonus, to which you would have been entitled under the
terms of this Letter Agreement had your employment continued through Transaction
Completion or, if applicable, the Termination Date. Payment will be made at the
same time the bonus would have been paid had you remained employed through
Transaction Completion or, if applicable, the Termination Date. Under no
circumstances will your resignation from employment or retirement for any reason
constitute an involuntary termination without Cause for purposes of the
incentive provided for by this Letter Agreement.

         4. DEATH OR DISABILITY. If the Galaxy Transaction is completed and you
die or become disabled (within the meaning of GTE's Long Term Disability Plan)
prior to the Transaction Completion, you, or, in the event of your death, your
estate, will receive a prorated Transaction Completion Bonus based on the ratio
of (i) the number of days you remained actively employed between the date of
this Letter Agreement and Transaction Completion to (ii) the number of days
between the date of this Letter Agreement and Transaction Completion. If efforts
to divest all or substantially all of the assets of Government Systems are
terminated, and should you die or become disabled (within the meaning of GTE's
Long Term Disability Plan) prior to the Termination Date, you or, in the event
of your death, your estate, will receive a Partial Bonus equal to the Partial
Bonus you would have received had you remained actively employed through the
Termination Date. The prorated Transaction Completion Bonus or the Partial Bonus
payable under this paragraph shall be paid at the same time such bonus would
have been paid had you remained actively employed through the Transaction
Completion or, if applicable, the Termination Date.

         5. CIRCUMSTANCES WHEN NO BONUS WILL BE PAID. Should you resign or
retire for any reason prior to Transaction Completion or, if applicable, the
Termination Date, or should you at any time engage in conduct that would
constitute Cause for your discharge, you will not be eligible to receive any
portion of the Transaction Completion Bonus or Partial Bonus.

         6. DEFERRAL. The Transaction Completion Bonus or Partial Bonus, as the
case may be, may be deferred under the EIP deferral regulations, or any
successor arrangement, in accordance with the terms of those regulations.
Amounts deferred under this Letter Agreement shall not, however, be eligible for
match under EPP.

         7. PAYMENT TAXABLE/NOT BENEFIT BEARING. Applicable taxes will be
withheld from any bonus payment made pursuant to this Letter Agreement. Neither
the Transaction Completion Bonus nor the Partial Bonus shall be treated as
compensation for purposes of computing or determining any benefit under any
pension, savings, insurance, or other employee compensation or benefit plan
maintained by GTE.

<PAGE>   5
Armen Der Marderosian
January 22, 1999 (Revised)
Page 5

         8. NO DUPLICATION OF BENEFITS. Except for grants and agreements
specifically approved by the ECC, there shall be no duplication between any
retention incentive payment provided for by this Letter Agreement and any other
retention incentive program that provides for payment of a retention bonus for
continued employment during any part of the same period covered by this Letter
Agreement. As a result, any bonus payment otherwise due under this Letter
Agreement shall be reduced by any amounts due under any such retention incentive
program.

         9. RELEASE REQUIREMENT. Payment of any Transaction Completion Bonus or
Partial Bonus under this Letter Agreement is contingent upon your executing a
release of claims against GTE in a form acceptable to GTE.

C.       GENERAL PROVISIONS

         1. PROHIBITION AGAINST RECRUITING OR HIRING. Commencing on the date of
this Letter Agreement and through the first anniversary of the termination of
your employment for any reason from GTE (which, for purposes of this Letter
Agreement, includes GTE Corporation, any corporate subsidiary or other company
affiliated with GTE Corporation, any company in which GTE Corporation owns
directly or indirectly an equity interest of at least ten percent, and the
successors and assigns of any such company, including, following the Merger,
Bell Atlantic Corporation, its subsidiaries, affiliates, and other related
entities and their successors and assigns) you agree that you will not, without
the prior written consent of the ECC:

         (i)      Recruit or solicit any employee of GTE for employment or for
                  retention as a consultant or provider of services;

         (ii)     Hire, or participate with another company or third party in
                  the process of hiring, any employee of GTE;

         (iii)    Provide names or other information about GTE employees to any
                  person or business under circumstances that you know or should
                  know could lead to the use of that information for purposes of
                  recruiting or hiring; or

         (iv)     Interfere with the relationship between GTE and any of its
                  employees, agents, or representatives.

Provided, however, that the provisions of this paragraph will not apply in the
event that you become employed by any entity to which all or substantially all
of the assets of Government Systems are sold.

         2. PROHIBITION AGAINST SOLICITING GTE CUSTOMERS. Commencing on the date
of this Letter Agreement and through the first anniversary of the termination of
your employment for any reason from GTE, you agree that you will not solicit or
contact, directly or indirectly, any customer, client, or prospect of GTE with
whom you or any of the GTE employees reporting to you had any contact at any
time during the year preceding your termination for the purpose of inducing such
customer, client, or prospect to cease being, or

<PAGE>   6
Armen Der Marderosian
January 22, 1999 (Revised)
Page 6

to not become, a customer or client of GTE or to divert business from GTE.
Provided, however, that the provisions of this paragraph will not apply in the
event that you become employed by any entity to which all or substantially all
of the assets of Government Systems are sold.

         3. CONFIDENTIALITY. You agree that you will not disclose or discuss the
existence or terms of this Letter Agreement under any circumstances where it
reasonably could be expected that such information would, directly or
indirectly, come to the attention of any present or past GTE employee,
consultant, or contractor. You further agree that you will require any person
with whom you share information about this Letter Agreement to adhere to the
same standard of confidentiality.

         4. PROPRIETARY INFORMATION. You agree that you will at all times comply
with your obligations under the Employee Agreement Relating to Intellectual
Property (Policy 412) or its equivalent and preserve the confidentiality of all
Proprietary Information and trade secrets of GTE, and the Proprietary
Information and trade secrets of third parties, including customers, that are in
the possession of GTE, by not disclosing the same to any third party or using
the same, or any portion thereof, for the benefit of anyone other than GTE.
"Proprietary Information" means information obtained or developed by you or to
which you had access during your employment with GTE, including, but not limited
to, customer information and trade secrets and proprietary information of GTE
and third parties that has not been fully disclosed in a writing generally
circulated by GTE to the public at large without any restrictions on use or
disclosure. You agree that you will return all copies, in whole or in part, in
any form, of trade secrets or Proprietary Information in your possession or
control upon any termination of employment or upon request by GTE, whichever
occurs earlier, without making or retaining a copy.

         5. SURVIVAL OF AND CONSIDERATION FOR COVENANTS. You acknowledge and
agree that the compensation and benefits provided for pursuant to this Letter
Agreement include consideration for the covenants contained in paragraphs 1, 2,
3 and 4 of Section C of this Letter Agreement and that, except as specifically
provided by the terms of this Letter Agreement, the obligations set out in
paragraphs 1, 2, 3 and 4 of Section C of this Letter Agreement survive any
cancellation, termination, or expiration of this Letter Agreement or the
termination of your employment with GTE.

         6. BUSINESS DISCRETION OF GTE. Nothing in this Letter Agreement is
intended to limit the discretion of GTE to take any action with regard to the
sale that GTE may consider appropriate, including, without limitation,
postponing Transaction Completion or terminating sales efforts. This Letter
Agreement does not entitle you to remain in the employ of GTE for any minimum or
prescribed period or term and does not modify the at-will status of your
employment.

<PAGE>   7
Armen Der Marderosian
January 22, 1999 (Revised)
Page 7

         7. ASSIGNMENT BY GTE. GTE may assign this Letter Agreement without your
consent. You may not assign this Letter Agreement, and no person other than you
(or your estate) may assert your rights under this Letter Agreement.

         8. DISPUTE RESOLUTION. You agree that the ECC shall have sole
discretion to interpret this Letter Agreement and to resolve any and all
disputes under this Letter Agreement. You further agree that the ECC's
determination shall be final and binding.

         9. WAIVER. The waiver by GTE of any breach of this Letter Agreement
shall not be construed as a waiver of any subsequent breach.

         10. GOVERNING LAW. This Letter Agreement shall be interpreted and
enforced in accordance with the laws of the State of New York, disregarding its
choice of law rules.

         11. REMEDIES. You acknowledge that irreparable injury to GTE will
result in the event of any breach by you of any of the covenants or obligations
under this Letter Agreement, including other obligations referenced herein. In
the event of a breach of any of your covenants and commitments under this Letter
Agreement, including any other obligations referenced herein, GTE shall not be
obligated to make any payment otherwise required under this Letter Agreement and
may, at GTE's discretion, require you to repay any amounts already paid to you,
including amounts that may have been deferred. In addition, GTE reserves all
rights to seek any and all remedies and damages permitted under law, including,
but not limited to, injunctive relief, equitable relief, and compensatory and
punitive damages.

         12. DEFINITIONS/RELATIONSHIP TO OTHER AGREEMENTS. The definitions
contained in this Letter Agreement, including, but not limited to, the
definition of Cause, shall be controlling for purposes of this Letter Agreement.
These definitions shall not be modified by, nor shall they modify, definitions
for terms in any other agreement to which you may be a party.

         13. ENTIRE AGREEMENT. You acknowledge and agree that, except for your
Executive Severance Agreement, this Letter Agreement, including the required
release, sets forth the entire understanding of the parties with regard to the
subject matter addressed herein and that this Letter Agreement supersedes all
prior agreements (other than your Executive Severance Agreement) and
communications, whether written or oral, pertaining to the subject matter
described herein. The Letter Agreement shall not be modified except by written
agreement duly executed by you and GTE.

<PAGE>   8
Armen Der Marderosian
January 22, 1999 (Revised)
Page 8

         Again, Armen, we appreciate your leadership and valuable contributions
to the company. I hope that the terms of this Letter Agreement and the incentive
just described will provide you with a level of comfort as you continue your
important role at GTE and our efforts to make the transaction a success. If this
Letter Agreement meets with your satisfaction, please sign below, fax a copy to
me no later than 8:00 a.m. EST on Monday, January 25, 1999, and return the
original to me by overnight mail, to be received no later than Tuesday, January
26, 1999.

Sincerely,

Thomas White

TW:jls

I have read, understand, and agree to the terms of this Letter Agreement.

------------------------------------
Armen Der Marderosian

------------------------------------
Date

I irrevocably elect the following bonus calculation formula for purposes of
determining the amount of any Transaction Completion Bonus, or, in the event of
my death or disability prior to Transaction Completion, any portion thereof, to
which I am entitled under this Letter Agreement.

_______      (a)  bonus based on annual salary and average EIP as described in
                  paragraph B(1)(a) of this Letter Agreement.

                           or

_______      (b)  bonus based on price obtained at Transaction Completion and as
                  described in paragraph B(1)(b) of this Letter Agreement.

-------------------------------------
Armen Der Marderosian

-------------------------------------
Date

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