Document:

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                                                                  EXHIBIT 10HH-1
                                    AGREEMENT

         THIS AGREEMENT is made and entered into this 19th day of November,
2001, by and between BellSouth Corporation, a Georgia corporation ("Company"),
and Ronald M. Dykes ("Executive"):

         REASONS FOR THIS AGREEMENT. Company has identified Executive as an
individual with significant skills and experience critical to the business of
Company. In view of the significant and growing demand for executive talent, the
potential impact on Company's executives of the transformational changes
occurring within our industry and company, and the need to ensure continuity of
Company's senior executive team, Company desires to provide Executive through
this Agreement with certain incentives to remain in Company's employment. This
Agreement is also designed to impose certain reasonable restrictions on
Executive's activities designed to protect Company's interests should
Executive's employment terminate.

         Executive has been employed by Company and its Affiliated Companies
since 1971 and, during his tenure, has served in a variety of senior capacities.
Executive assumed his current position as Chief Financial Officer in 1995.
Executive is responsible for all financial matters and investor relations for
Company and all Affiliated Companies and reports to Company's Chairman.

         Executive acknowledges that Company and Affiliated Companies have
disclosed or made available Confidential Information to Executive which could be
used by Executive to Company's or Affiliated Companies' detriment. In addition,
in connection with his employment, Executive has developed important
relationships and contacts with employees valuable to Company and Affiliated
Companies.

         Executive further acknowledges that the covenant not to compete and
other restrictive covenants in this Agreement are fair and reasonable, that
enforcement of the provisions of this Agreement will not cause him undue
hardship, and that the provisions of this Agreement are reasonably necessary and
commensurate with the need to protect Company and Affiliated Companies and their
business interests and property from irreparable harm.

         Executive and Company have previously entered into an agreement dated
October 26, 2000 (the "Prior Agreement"). Executive and Company now desire to
replace the Prior Agreement with this Agreement (except to the extent expressly
provided in Section 1 of this Agreement).

         AGREEMENT. In consideration of the mutual promises contained in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Executive and Company agree as follows:

         1.       PRIOR AGREEMENT. Executive and Company agree and acknowledge
that, upon execution of this Agreement, this Agreement supercedes the Prior
Agreement in all respects,

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except for the terms of Section 1 of the Prior Agreement (regarding a grant to
Executive of Restricted Shares, which Restated Shares Award is amended, however,
in part in Section 3 of this Agreement).

         2.       TERMINATION BEFORE 2004. In the event Executive's employment
is terminated on or before December 31, 2003, under circumstances described
below in this Section 2, Company shall pay to Executive a termination allowance.
The termination allowance shall be an amount equal to the sum of (i) two hundred
percent (200%) of Executive's Base Salary in effect on the date of Executive's
termination of employment, plus (ii) two hundred percent (200%) of the standard
award amount applicable to Executive under the BellSouth Short Term Incentive
Award Plan ("STIAP") for the year in which his date of termination occurs, less
all applicable withholdings, payable in a single lump sum payment. Payment of
the termination allowance shall be made as soon as practicable following
Executive's termination of employment under circumstances entitling him to such
payment, and satisfaction of all conditions described in this Agreement on
Executive's entitlement to such payment.

         For purposes of this Agreement, "Base Salary" shall refer to the gross
annual base salary payable to Executive including (i) the amounts of any
before-tax contributions made by Executive from such salary to the BellSouth
Retirement Savings Plan, or any other tax-qualified cash or deferred arrangement
sponsored by Company, and (ii) the amount of any other deferrals of such salary
under any nonqualified deferred compensation plan(s) maintained by Company.

         Executive's employment shall be deemed to have been terminated under
circumstances described in this Section 2 only if all of the following
conditions are satisfied:

                  (A)      Executive's employment is terminated either (1) by
                           Company, other than for Cause, or (2) by Executive
                           for Good Reason; and

                  (B)      Executive executes a release satisfying the terms of
                           Section 5(b) of this Agreement; and

                  (C)      Executive executes an agreement regarding competition
                           with Company and Affiliated Companies satisfying the
                           terms of Section 8(b) of this Agreement; and

                  (D)      Executive is not transferred to or reemployed by an
                           Affiliated Company.

         3.       RESTRICTED SHARES AWARD. If Executive remains actively
employed by Company or an Affiliated Company (or a successor to any such entity)
through December 31, 2003, the Restricted Shares Award described in Section 1 of
the Prior Agreement shall be 100% vested on December 31, 2003, notwithstanding
the vesting scheduled described in the Restricted Shares Award Agreement
(described in the Prior Agreement).

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         4.       SPECIAL RETIREMENT BENEFITS. If Executive retires between
January 1, 2004 and June 30, 2004, on a date selected by Company, Executive
shall be entitled to the special retirement benefits described in this Section
4.

         (a)      SERP BENEFIT. Upon retirement as described above in this
Section 4, Executive shall be entitled to benefits under SERP equal to the
greater of:

                  (i)      an aggregate annual benefit based on (A) sixty
                           percent (60%) of "Included Earnings" (as such term is
                           defined in SERP), instead of the formula described in
                           section 4.4(a)(i)(A) of SERP, and (B) no early
                           retirement discount, instead of the otherwise
                           applicable early retirement discount described in
                           section 4.4(c) of SERP; and

                  (ii)     the benefits provided to Executive under SERP without
                           regard to this Section 4(a).

         Except as otherwise provided in this Section 4(a), all other terms and
conditions of SERP shall govern Executive's entitlement to benefits thereunder.
In the event SERP shall be amended or restated or redesigned, benefits payable
with respect to Executive under such amended, restated or redesigned plan shall
include a benefit enhancement designed to approximate as nearly as reasonably
possible the SERP benefit enhancement described in this Section 4(a).

         (b)      RETIREMENT ALLOWANCE. Upon retirement as described above in
this Section 4, and satisfaction of the conditions described in this Section
4(b), Company shall pay to Executive a retirement allowance. The retirement
allowance shall be an amount equal to the sum of (i) two hundred percent (200%)
of Executive's Base Salary in effect on the date of Executive's retirement, plus
(ii) one hundred percent (100%) of the standard award amount applicable to
Executive under STIAP for the year in which his retirement occurs, less all
applicable withholdings, payable in a single lump sum payment. Payment of the
retirement allowance shall be made as soon as practicable following Executive's
retirement under circumstances entitling him to such payment, and satisfaction
of all conditions described in this Agreement on Executive's entitlement to such
payment.

         Executive shall be entitled to the retirement allowance described in
this Section 4(b) if all of the following conditions are satisfied:

                  (A)      Executive executes a release satisfying the terms of
                           Section 5(b) of this Agreement; and

                  (B)      Executive executes an agreement regarding competition
                           with Company and Affiliated Companies satisfying the
                           terms of Section 8(b) of this Agreement; and

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                  (C)      Executive is not transferred to or reemployed by an
                           Affiliated Company.

         5.       DISCHARGE AND WAIVER. (a) Executive fully releases and forever
discharges Company and Affiliated Companies, and any employee, officer,
director, representative, agent, successor or assign of Company and Affiliated
Companies (both in their personal and official capacities), and all persons
acting by, through and under or in concert with any of them, from any and all
claims, demands, causes of action, remedies, obligations, costs and expenses of
whatever nature, whether under the common law, state law, federal law (including
but not limited to the Age Discrimination in Employment Act of 1967) or
otherwise, through the date of this Agreement, including those arising from or
in connection with the terms and conditions of employment with Company (and
Affiliated Companies). This paragraph is not intended to and shall not affect
benefits to which Executive may be entitled under any pension, savings, health,
welfare, or other benefit plan in which Executive is a participant.

         (b)      Furthermore, Company's obligations under this Agreement upon
termination of Executive's employment, and Executive's entitlement to any such
benefits, are expressly conditioned upon execution by Executive, upon
termination of his employment, of a release agreement substantially in the form
of the release agreement attached to this Agreement as Exhibit "A," which is
incorporated herein by this reference.

         6.       COVENANT NOT TO SUE. Executive covenants and agrees not to
make or file any claim, demand or cause of action or seek any remedy of whatever
nature, whether under the common law, state law, federal law or otherwise,
arising from or in connection with the matters discharged and waived in Section
5, above. Notwithstanding the foregoing, in the event Executive files a charge
or lawsuit under the Age Discrimination in Employment Act of 1967 ("ADEA") and
thereby challenges the validity of the release described in Section 5, such
charge or lawsuit will not be considered a breach of this Section 6.

         7.       CONFIDENTIAL INFORMATION. Executive agrees to protect
Confidential Information. Executive will not use, except in connection with work
for Company or Affiliated Companies, threaten to use, disclose or threaten to
disclose, give or threaten to give to others any Confidential Information. For
purposes of this Agreement, "Confidential Information" shall mean information,
whether generated internally or externally, relating to Company's business or to
Affiliated Companies' businesses which derives economic value, actual or
potential, from not being generally known to other Persons and is the subject of
efforts that are reasonable under the circumstances to maintain its secrecy or
confidentiality, including, but not limited to, studies and analyses, technical
or nontechnical data, programs, patterns, compilations, devices, methods, models
(including cost and/or pricing models and operating models), techniques,
drawings, processes, employee compensation data, and financial data (including
marketing information and strategies and personnel data). For purposes of this
Agreement, Confidential Information does not include information which is not a
trade secret three (3) years after termination of Executive's

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employment with Company, but shall continue to include trade secrets as long as
information remains a trade secret under applicable law.

         8.       LIMITATION ON COMPETITION. (a) In consideration of the
payments and other rights and benefits that are being provided to Executive
under this Agreement, while employed by Company or an Affiliated Company, and
during the period of eighteen (18) months after the termination of such
employment, Executive agrees not to provide services (as more fully described in
the third paragraph of this Section 8) in competition with Company or any
Affiliated Company to any person or entity which provides products or services
identical to or substantially similar to products and services provided by
Company or Affiliated Companies in the same business market(s), whether as an
employee, consultant, independent contractor, advisor or director, within the
Territory.

         For purposes of this Agreement, the term "Territory" shall mean the
territory in which Executive provides services to Company and Affiliated
Companies, consisting of those portions of Alabama, Florida, Georgia, Kentucky,
Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee, and those
additional markets listed on Exhibit "B" attached hereto and incorporated herein
by this reference, in which Company or Affiliated Companies are engaged in
business as of the date of this Agreement. Executive agrees that because of the
widespread nature of Company's business, breach of this Agreement by engaging in
competitive activity anywhere in this broad Territory would irreparably injure
Company or Affiliated Companies and that, therefore, a more limited geographic
restriction is neither feasible nor appropriate.

         The services which Executive has provided to Company and Affiliated
Companies, and which Executive shall be prohibited from providing in competition
with Company or Affiliated Companies in accordance with the terms of this
Agreement shall be financial management, planning, administration, strategic
planning, and advisory services with respect to the communications services
business, including without limitation all forms of wireline (including without
limitation local exchange, exchange access and intraLATA toll)
telecommunications services, systems and products, all forms of wireless
(including without limitation cellular, personal communications service, and
mobile data) communications services, systems and products, all forms of
electronic commerce or communications including internet and other web based
applications, data transmission and networking, entertainment services, systems
and products, paging services, systems and products, and advertising and
publishing, to the extent engaged in by Company and Affiliated Companies on the
date of this Agreement.

         Executive represents to Company that Executive's education, training
and experience are such that this covenant not to compete will not jeopardize or
significantly interfere with Executive's ability to secure other gainful
employment.

         (b)      After Executive's termination of employment, Company's
obligation to provide any of the benefits, entitlements or payments described in
this Agreement or in the Restricted Shares Award Agreement are expressly
conditioned upon execution by Executive of an

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agreement, in form and substance reasonably acceptable to Company, and
reflecting terms substantially identical to the terms of Section 8(a) of this
Agreement updated, however, to reflect, as of the date of Executive's
termination of employment, (i) the products and services provided by Company and
Affiliated Companies, (ii) the territory in which such products and services are
provided by Company and Affiliated Companies, and (iii) the nature of the
services provided, and activities engaged in, by Executive, on behalf of Company
and Affiliated Companies. Upon execution of such agreement, the provisions of
Section 8(a) of this Agreement shall thereafter be void.

         (c)      In the event that Executive either (i) fails or refuses to
execute an agreement satisfying the terms of Section 8(b) of this Agreement
following his termination of employment, or (ii) fails to comply with the terms
of Section 8(a), the agreement described in Section 8(b), or Section 9 of this
Agreement, then, in addition to all other rights and remedies available to
Company and Affiliated Companies under this Agreement or at law or in equity:

                  (A)      all amounts otherwise payable by Company or an
                           Affiliated Company to (or on behalf of) Executive
                           pursuant to the terms of this Agreement for periods
                           subsequent to the date of termination of employment,
                           with regard to clause (i) above, or the date of such
                           failure, with regard to clause (ii) above, as the
                           case may be, shall be forfeited and Company and
                           Affiliated Companies shall cease to be under any
                           further obligation to Executive with respect to the
                           compensation and benefits described in this
                           Agreement;

                  (B)      Executive shall refund to Company promptly any and
                           all amounts previously paid to or on behalf of
                           Executive pursuant to the terms of this Agreement for
                           periods subsequent to the occurrence of any event
                           described in clause (ii) above of this Section 8(c);
                           and

                  (C)      Executive shall promptly return to Company all shares
                           of Company's common stock delivered to Executive
                           pursuant to the Restricted Shares Award plus, if any
                           of such shares shall have been previously disposed
                           of, a cash amount equal to the proceeds from such
                           disposition (or the fair market value of such shares
                           on the date of such disposition, if disposed of for
                           less than fair market value).

         9.       LIMITATION ON SOLICITATION OF COMPANY PERSONNEL. In
consideration of the payments and other rights and benefits that are being
provided to Executive under this Agreement, during the period of eighteen (18)
months after his termination of employment, Executive will not, directly or
indirectly, induce or solicit any employee or other personnel, director, advisor
or independent contractor of Company or any Affiliated Company to sever his or
its relationship with Company or the Affiliated Company, or recruit or attempt
to recruit such parties to enter into a similar relationship with another
business; provided, however, that this

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restriction shall apply only to parties with whom Executive had material contact
within eighteen (18) months prior to the termination of such employment.
However, Executive may hire or otherwise engage on behalf of himself or on
behalf of any company or entity any party who terminated his or its relationship
with the Company or an Affiliated Company without any inducement or attempted
inducement or solicitation by Executive.

         10.      INTERPRETATION; SEVERABILITY OF INVALID PROVISIONS. Executive
acknowledges and agrees that the limitations described in this Agreement,
including specifically the limitations upon his activities, are reasonable in
scope, are necessary for the protection of Company's and Affiliated Companies'
business, and form an essential part of the consideration for which this
Agreement has been entered into. It is the intention of the parties that the
provisions of this Agreement be enforced to the fullest extent permissible under
applicable laws and public policies. Nonetheless, the rights and restrictions
contained in this Agreement may be exercised and shall be applicable and binding
only to the extent they do not violate any applicable laws and are intended to
be limited to the extent necessary so that they will not render this Agreement
illegal, invalid or unenforceable. If any provision of this Agreement shall be
held to be illegal, invalid or unenforceable, the remaining provisions shall
remain in full force and effect. The provisions of this Agreement do not in any
way limit or abridge Company's or Affiliated Companies' rights under the laws of
unfair competition, trade secret, copyright, patent, trademark or any other
applicable law(s), all of which are in addition to and cumulative of Company's
or Affiliated Companies' rights under this Agreement. Executive agrees that the
existence of any claim by Executive against Company or any Affiliated Company,
whether predicated on this Agreement or otherwise, shall not constitute a
defense to enforcement by Company or any Affiliated Company of any or all of
such provisions or covenants.

         11.      RELIEF. The parties acknowledge that a breach or threatened
breach by Executive of any of the terms of this Agreement would result in
material and irreparable damage and injury to Company or Affiliated Companies,
and that it would be difficult or impossible to establish the full monetary
value of such damage. Therefore, Company and Affiliated Companies shall be
entitled to injunctive relief in the event of Executive's breach or threatened
breach of any of the terms contained in this Agreement. In the event of any
breach of this Agreement by Executive, if Company or any Affiliated Company
should employ attorneys or incur other expenses for the enforcement of any
obligation or agreement of Executive contained herein, Executive agrees that, on
demand and to the extent permitted by law, Executive shall reimburse Company or
the Affiliated Company for its reasonable attorneys' fees and such other
reasonable expenses so incurred.

         12.      ARBITRATION. Except for the right to seek injunctive relief in
a court of competent jurisdiction for a breach or threatened breach of this
Agreement as provided in Section 11, any dispute, controversy or claim arising
out of or relating to this Agreement, or the breach, termination or invalidity
hereof (collectively, a "Claim") shall be settled by arbitration pursuant to the
rules of the American Arbitration Association. Any such arbitration shall be
conducted by one arbitrator, with experience in the matters covered by this
Agreement, mutually acceptable to

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the parties. If the parties are unable to agree on the arbitrator within
thirty (30) days of one party giving the other party written notice of intent to
arbitrate a Claim, the American Arbitration Association shall appoint an
arbitrator with such qualifications to conduct such arbitration. The decision of
the arbitrator in any such arbitration shall be conclusive and binding on the
parties. Any such arbitration shall be conducted in Atlanta, Georgia.

         13.      AGREEMENT BINDING. This Agreement shall be binding upon and
inure to the benefit of Company and Affiliated Companies, and their successors,
assignees, and designees, and Executive and Executive's heirs, executors,
administrators, personal representatives and assigns.

         14.      ENTIRE AGREEMENT; PREVIOUS AGREEMENT. This Agreement contains
the entire agreement between the parties and no statements, promises or
inducements made by any party hereto, or agent of either party, which are not
contained in this Agreement shall be valid or binding; provided, however, that
the matters dealt with herein supersede previous written agreements between the
parties on the same subject matters only to the extent such previous provisions
are inconsistent with this Agreement and other provisions in written agreements
between the parties not inconsistent with this Agreement are not affected. This
Agreement may not be enlarged, modified or altered except in writing signed by
the parties.

         15.      NONWAIVER. The failure of Company or any Affiliated Companies
to insist upon strict performance of the terms of this Agreement, or to exercise
any option herein, shall not be construed as a waiver or a relinquishment for
the future of such term or option, but rather the same shall continue in full
force and effect.

         16.      NOTICES. All notices, requests, demands and other
communications required or permitted by this Agreement or by any statute
relating to this Agreement shall be in writing and shall be deemed to have been
duly given if delivered or mailed, first-class, certified mail, postage prepaid,
addressed as follows:

                  To Company:               Charles R. Morgan
                                            Executive Vice President and
                                                     General Counsel
                                            BellSouth Corporation
                                            2002 Campanile
                                            1155 Peachtree Street, N.E.
                                            Atlanta, GA  30309

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                  To Executive:             Ronald M. Dykes
                                            110 Green Fall Pointe
                                            Atlanta, GA  30350
                                            (or such other address as shall be
                                            provided by Executive to Company
                                            from time to time)

         17.      POOLING OF INTERESTS ACCOUNTING TREATMENT. Notwithstanding
anything to the contrary in this Agreement, if the application of any
provision(s) of this Agreement would preclude the use of pooling of interests
accounting treatment with respect to a transaction for which such treatment
otherwise is available and to be adopted by Company, this Agreement shall be
modified as it applies to such transaction, to the minimum extent necessary to
prevent such impact, including if necessary the invalidation of such provisions
(or the entire Agreement, as the case may be). If the pooling of interests
accounting rules require modification or invalidation of one or more provisions
of this Agreement as it applies to such transaction, the adverse impact on the
Executive shall, to the extent reasonably possible, be proportionate to the
adverse impact on other similarly situated employees of Company. The Board of
Directors of Company shall, in its sole and absolute discretion, make all
determinations necessary under this Section; provided, that determinations
regarding the application of the pooling of interests accounting rules for these
purposes shall be made by Company, with the concurrence of Company's independent
auditors at the time such determination is to be made.

         18.      NONDUPLICATION. Notwithstanding any other provisions of this
Agreement, if Executive becomes entitled to benefits under Article III of the
CIC Agreement, the severance benefits described in Article III(a) of the CIC
Agreement shall be in lieu of any termination allowance to which Executive is
otherwise entitled under Section 2 of this Agreement or any retirement allowance
to which Executive is otherwise entitled under Section 4(b) of this Agreement.
Except as otherwise specifically provided in this Section 18, both this
Agreement and the CIC Agreement shall continue in full force and effect, and
Article X(e) of the CIC Agreement shall be interpreted consistently herewith.

         19.      NONDISCLOSURE. Executive shall not disclose the existence or
terms of this Agreement to any third party (excluding Executive's spouse and
children), except to receive advice of legal counsel, financial advisors or tax
advisors (who shall also be required to maintain its confidentiality) or to
comply with any statutory or common law duty; provided that these restrictions
on disclosure shall not apply to the extent that the existence of this Agreement
are disclosed by Company or any Affiliated Company as part of its periodic
public filings and disclosures or otherwise.

         20.      COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall constitute an original and all of which, when
taken together, shall constitute one agreement.

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         21.      GOVERNING LAW. This Agreement shall be construed under and
governed by the laws of the State of Georgia. Executive has been advised to
consult with an attorney, acknowledges having had ample opportunity to do so and
fully understands the binding effect of this Agreement. In this regard,
Executive acknowledges that a copy of this Agreement was provided to Executive
for review and consideration for up to twenty-two (22) days. Further, Executive
understands that this Agreement may be revoked by Executive within seven (7)
days from the date of execution of this Agreement.

         22.      DEFINITIONS. For purposes of this Agreement, the following
terms shall have the meaning specified below:

         (A)      "AFFILIATED COMPANIES" - shall mean Company and each entity in
respect of which Company owns directly or indirectly (i) with respect to a
corporation, stock that represents at least ten (10%) percent of the total
combined voting power of all classes of stock in the corporation in connection
with the election of directors of such corporation, or (ii) in the case of a
joint venture, partnership, limited liability company or similar entity, and
interest of at least ten (10%) percent in the capital or profits of such entity.

         (B)      "BASE SALARY" - shall have the meaning ascribed to such term
in Section 2 of this Agreement.

         (C)      "CAUSE" - shall mean Executive's (i) engaging in an act (or
acts) of willful dishonesty involving Company or Affiliated Companies or their
business(es) that is demonstrably injurious to Company or Affiliated Companies;
(ii) refusal or failure to follow reasonable instructions of Company's Chief
Executive Officer or Board of Directors; or (iii) conviction of a crime
classified as a felony.

         (D)      "CIC AGREEMENT" - the Executive Severance Agreement entered
into by and between Executive and Company on October 17, 1996, providing certain
benefits in the event of a change in corporate control of Company, as amended
from time to time.

         (E)      "CONFIDENTIAL INFORMATION" - shall have the meaning ascribed
to such term in Section 7 of this Agreement.

         (F)      "GOOD REASON" - shall mean, without Executive's express
written consent a reduction in Executive's Base Salary, or his compensation
band, as in effect immediately prior to such reduction, or the failure to pay a
bonus award to which Executive is otherwise entitled under any of the short term
or long term incentive plans in which Executive participates (or any successor
incentive compensation plans) at the time such awards are usually paid.

         (G)      "PERSON" - shall mean any individual, corporation, bank,
partnership, joint venture, association, joint stock company, trust,
unincorporated organization, governmental or other legal or business entity.

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         (H)      "RESTRICTED SHARES AWARD" AND "RESTRICTED SHARES AWARD
AGREEMENT" - shall have the meanings ascribed to such terms in the Prior
Agreement.

         (I)      "SERP" - the BellSouth Corporation Supplemental Executive
Retirement Plan, as amended from time to time.

         (J)      "TERRITORY" - shall have the meaning ascribed to such term in
Section 8 of this Agreement.

         IN WITNESS WHEREOF, Company has caused this Agreement to be executed by
its duly authorized representative, and Executive has executed this Agreement,
as of the date written above.

EXECUTIVE:                                BELLSOUTH CORPORATION:

/s/ Ronald M. Dykes
-----------------------------------       By: /s/ Richard D. Sibbernsen
RONALD M. DYKES                              -----------------------------------
                                          Title: Vice-President Human Resources
                                                --------------------------------

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                                   EXHIBIT "A"

                                RELEASE AGREEMENT

         For and in consideration of the mutual promises contained in the
Transition Agreement entered into on the __ day of __________, 20___, between
Ronald M. Dykes ("Executive") and BellSouth Corporation ("Company"), Executive
does hereby, for himself, his heirs, executors, administrators, and assigns,
release and forever discharge Company, its subsidiary, affiliated and associated
companies, and any employee, officer, director, representative, agent, successor
or assign of any such entity, and all persons acting by, through and under or in
concert with any of them (both in their personal and official capacities), from
any and all claims, demands, actions, causes of action, remedies, suits,
obligations, damages, losses, costs and expenses, of whatever kind or nature,
whether under common law, state law, federal law or otherwise, including without
limitation the Age Discrimination in Employment Act of 1967, as amended, through
the date of this Release Agreement, including without limitation those arising
from or in connection with the terms and conditions of Executive's employment
with Company and any subsidiary, affiliated and associated companies, or the
termination of Executive's employment. This Release is not intended to affect
benefits to which Executive may be entitled under any pension, savings, health,
welfare or other benefit plan in which Executive is a participant.

         Executive covenants and agrees not to make or file any claim, demand or
cause of action or seek any remedy of whatever nature, whether under common law,
state law, federal law or otherwise arising from or in connection with the
matters discharged and waived above. Notwithstanding the foregoing, in the event
Executive files a charge or lawsuit under the Age Discrimination in Employment
Act of 1967 ("ADEA") and thereby challenges the validity of the release
described herein, such charge or lawsuit will not be considered a breach of this
provision.

         Executive has been advised to consult with an attorney, acknowledges
having had ample opportunity to do so, and fully understands the binding effect
of this Release Agreement. Executive acknowledges that a copy of this Release
Agreement was provided to him on __________, 2001, for review and consideration
for up to twenty-two (22) days. Executive understands that this Release may be
revoked by him within seven (7) days from the date of execution of this Release
Agreement.

         Executive agrees that this Agreement shall be construed under and
governed by the laws of the State of Georgia.

         Executive now states that the only consideration for his signing this
Release Agreement is the mutual promises and payment of the sum described above;
that no other promises or agreements of any kind or nature have been made to, or
with, him by Company or its agents to cause him to sign this Release Agreement,
and that Executive fully understands the meaning and intent of this instrument.

         WITNESS my hand and seal this ____ day of __________, 20___.

                                           ------------------------------------
                                           RONALD M. DYKES

                                      A-1
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                                   EXHIBIT "B"

BELLSOUTH

International

Argentina (CRM - Buenos Aires) - Compania de Radiocomunicaciones Moviles, S.A.
Brazil (BCP - Sao Paulo; BSE - Northeast Region) - BCP S.A. & BSE S.A.
      (Region 10)
Chile (BellSouth Chile and BellSouth Comunicaciones - Valparaiso and
Santiago) - BellSouth Chile S.A. BellSouth Comunicaciones S.A.
Denmark (Sonofon - Nationwide) - Dansk Mobiltelefon I/S
Ecuador (Otecel - Nationwide) - Otecel S.A.
Germany (E-Plus - Nationwide) - E-Plus Mobilfunk GmbH
Guatemala - BellSouth Guatemala Limited S.C.A.
India (Skycell - Madras Region) - Skycell Communications Limited
Israel (Cellcom - Nationwide) - CellCom Israel Ltd.
Nicaragua (Telefonia Celular - Managua and the Pacific Coast)
      - Telefonia Celular de Nicaragua, S.A.
Panama (BSC - Nationwide) - BSC de Panama S.A.
Peru (Tele 2000 - Lima) - BellSouth Peru, S.A.
Uruguay (Abiatar - Coastal Corridor) - Abiatar S.A.
Venezuela (Telcel - Nationwide) - Telcel Celular C.A.

Mobile Systems

                                CELLULAR MARKETS

<TABLE>
<CAPTION>
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STATE                   MARKETS - MSAS AND RSAS                    COUNTIES
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<S>                     <C>                                        <C>
Alabama                 Anniston, AL                               Calhoun; Jefferson; St. Clair; Shelby; Walker; Colbert;
                        Birmingham, AL                             Lauderdale; Etowah; Limestone; Madison; Marshall; Baldwin;
                        Florence, AL                               Mobile; Tuscaloosa; Franklin; Marion; Winston; Morgan;
                        Gadsden, AL                                Lawrence; Jackson; Lamar; Fayette; Pickens; Sumter; Greene;
                        Huntsville, AL                             Hale; Cleburne; Talladega; Clay; Randolph; Washington;
                        Mobile, AL                                 Clarke; Monroe; Conecuh; and, Escambia.
                        Tuscaloosa, AL AL 1(B1, B2 and B5)
                           - Franklin
                        AL 2(B1) - Jackson
                        AL 3(B1) - Lamar
                        AL 5(B1) - Cleburne
                        AL 6 - Washington

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California              Los Angeles, CA                            Los Angeles; Orange; Riverside; and, San Bernardino
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Florida                 Daytona Beach, FL                          Volusia; Baker; Clay; Duval; Nassau; St. Johns; Dada;
                        Jacksonville, FL                           Broward; Brevard; Orange; Osceola; Seminole; Palm; Beach;
                        Miami, FL                                  Hendry; Glades; Okeechobee; Indiana River; Citrus; Sumter;
                        Melbourne-Titusville-Palm Bay, FL          Putnam; Flagler; and Monroe
                        Orlando, FL
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</TABLE>

                                      B-1
<PAGE>

<TABLE>
<CAPTION>
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STATE                   MARKETS - MSAS AND RSAS                    COUNTIES
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<S>                     <C>                                        <C>
                        West Palm Beach-Boca Raton, FL.
                        FL 1(B2) - Collier
                        FL 2(B2 and B3) - Glades
                        FL 4(B2) - Citrus
                        FL 5(B1 and B3) - Putnam
                        FL 11(B1) - Monroe
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Georgia                 Athens, GA                                 Clarke; Jackson; Madison; Oconee; Butts; Cherokee; Clayton;
                        Atlanta, GA                                Cobb; DeKalb; Douglas; Fayette; Forsyth; Fulton; Gwinnett;
                        Macon-Warner Robins, GA                    Henry; Newton; Palding; Rockdale; Walton; Bibb; Houston;
                        GA 1 - Whitfield                           Jones; Peach; Twiggs; Whitfield; Murray; Gordon; Pickens;
                        GA 2(B1, B2 and B3) - Dawson               Gilmer; Fannin; Union; Towns; Dawson; Lumpkin; White;
                        GA 3 - Chattooga                           Habersham; Hall; Banks; Franklin; Stephens; Rabun; Barrow;
                        GA 4 (B1 and B3) - Jasper                  Chattooga; Floyd; Polk; Bartow; Jasper; Putnam; Morgan;
                        GA 5 (B1) - Haralson                       Greene; Oglethorpe; Elbert; Hart; Haralson; Carroll;
                        GA 6 (B4 and B5) - Spalding                Spalding; Lamar; Pike; Monroe; Crawford; Hancock; Baldwin;
                        GA 7- Hancock                              Wilkinson; Laurens; Washington; Johnson; Bleckley; Pulaski;
                        GA 10 - Bleckley                           Dodge; Wilcox; Telfair; Ben Hill; Turner; Irwin; Coffee; Jeff
                                                                   Davis; Wheeler; and, Montgomery
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Indiana                 Anderson, IN                               Madison; Monroe; Gibson; Lake; Porter; Henderson (KY); Posey;
                        Bloomington, IN                            Vanderburgh; Warrick; Boone; Hamilton; Hancock; Hendricks;
                        Gary, IN                                   Johnson; Marion; Morgan; Shelby; Howard; Tipton; Tippecanoe;
                        Evansville, IN                             Delaware; Clay; Sullivan; Vermillion; Vigo; Warren; Fountain;
                        Indianapolis, IN                           Montgomery; Parke; Putnam; Benton; Owen; Greene; Knox;
                        Kokomo, IN                                 Daviess; Martin; Pike; Dubois; Perry; Spencer; Brown;
                        Lafayette, IN                              Bartholomew; Lawrence; Jackson; Orange; Washington; Crawford;
                        Muncie, IN                                 Harrison; Decatur; Jennings; Ripley; Ohio; Switzerland;
                        Terre Haute, IN                            Jefferson; and, Scott
                        IN 5 - Warren
                        IN 7 - Owen
                        IN 8 - Brown
                        IN 9 - Decatur
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Kentucky                Lexington-Fayette, KY                      Bourbon; Clark; Fayette; Jessamine; Scott; Woodford; Bullitt;
                        Louisville, KY/IN                          Jefferson; Oldham; Clark (IN); Floyd (IN); Daviess; Fulton;
                        Owensboro, KY/IN                           Hickman; Carlisle; Ballard; McCracken; Graves; Marshall;
                        KY 1 - Fulton                              Calloway; Union; Webster; Hopkins; Crittenden; Livingston;
                        KY 2 - Union                               Caldwell; Lyon; Trigg; Meade; Breckinridge; Hancock; Ohio;
                        KY 3 - Meade                               Grayson; McLean; Muhlenberg; Butler; Edmondson; Todd; Logan
                        KY 6(B2) - Madison                         Warren; Simpson; Allen; Madison; Garrard; Boyle; Casey;
                        KY 7(B1 and B3) - Trimble                  Lincoln; Trimble; Henry; Franklin; Owen; Harrison; Shelby;
                        KY 8 - Mason                               Mason; Lewis; Fleming; Bath; Montgomery; Rowan; Bracken;
                        KY 9 - Elliott                             Robertson; Nicholas; Menifee; Elliott; Lawrence; Morgan;
                        KY 10 - Powell                             Magoffin; Johnson; Martin; Floyd; Pike; Powell; Estill;
                        KY 11 - Clay                               Wolfe; Lee; Jackson; Owsley; Breathhitt; Perry; Knott;
                                                                   Letcher; Clay; Leslie; Whitley; Knox; Bell; and, Harlan
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Louisiana               Baton Rouge, LA                            Parishes:  Ascension; East Baron Rouge; Livingston; West
                        Lafayette, LA                              Baton Rouge; Lafayette; St. Martin; Ouachita; Jefferson;
                        Monroe, LA                                 Orleans; St. Bernard; St. Tammany; Bossier; Caddo; Webster;
                        New Orleans, LA                            Beauregard; Allen; Evangeline; Avoyelles; St.
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</TABLE>

                                      B-2
<PAGE>

<TABLE>
<CAPTION>
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STATE                   MARKETS - MSAS AND RSAS                    COUNTIES
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<S>                     <C>                                        <C>
                        Shreveport, LA                             Landry; Acadia; Vermillion; Pointe Coupee; Iberville; Iberia;
                        LA 5(B2) - Beauregard                      St. Mary; Assumption; West Feliciana; East Feliciana; St.
                        LA 6(B1 and B2) - Iberville                Helena; Tangipahoa; Washington; St. James; St. Charles; St. John
                        LA 7 - West Feliciana                      the Baptist; and Plaquemines
                        LA 8 - St. James
                        LA 9 - Plaquemines
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Mississippi             Jackson, MS                                Hinds; Madison; Rankin; Tunica; Tate; Marshall; Benton;
                        MS 1(B1) - Tunica                          Tippah; Alcorn; Tishomingo; Prentiss; Union; Pontotoc; Lee;
                        MS 2 - Benton                              Itawamba; Carroll; Holmes; Yalobusha; Granada; Calhoun;
                        MS 3 (B2) - Bolivar                        Chickasaw; Clay; Monroe; Warren; Montgomery; Attala; Leake;
                        MS 4(B1 and B2) - Yalobusha                Neshoba; Kemper; Scott; Newton; Lauderdale; Claiborne;
                        MS 5 (B2) - Washington                     Copiah; Simpson; Lawrence; Jefferson Davis; Smith; Jasper;
                        MS 6 (B1) - Montgomery                     and, Clarke
                        MS 7 (B1 and B2) - Leake
                        MS 8(B2) - Claiborne
                        MS 9 (B1) - Copiah
                        MS 10 (B2) - Smith
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Pennsylvania            Pittsburgh, PA                             Allegheny; Beaver; Washington; and, Westmoreland
----------------------------------------------------------------------------------------------------------------------------------
South Carolina          Columbia, SC                               Lexington; Richland; and, Florence
                        Florence, SC
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Tennessee               Chattanooga, TN/GA                         Hamilton; Marion; Sequatchie; Catoosa (GA); Dade (GA); Walker
                        Clarksville-Hopkinsville, TN/KY            (GA); Christian (KY); Montgomery; Shelby; Tipton; Crittenden
                        Memphis, TN/AR/MS                          (AR); De Soto (MS); Cheatham; Davidson; Dickson; Robertson;
                        Nashville-Davidson, TN                     Rutherford; Sumner; Williamson; Wilson; Lauderdale; Crockett;
                        TN 1(B1 and B4) - Lake                     Gibson; Carroll; Benton; Stewart; Houston; Humphreys;
                        TN 5(B1, B2 and B3) - Fayette              Fayette; Haywood; Madison; Hardeman; Chester; Henderson;
                        TN 6 - Giles                               McNairy; Hardin; Decatur; Perry; Wayne; Hickman; Lewis;
                        TN 7(B1 and B2) - Bledsoe                  Lawrence; Giles; Marshall; Lincoln; Moore; Bedford; Franklin;
                        TN 9 - Maury                               Rhea; Meigs; Bradley; and, Maury
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Texas                   Bryan-College Station, TX                  Brazos; Galveston; Brazona; Fort Bend; Harris; Liberty;
                        Galveston-Texas City, TX                   Montgomery; Waller; Newton; Jasper; Tyler; Polk; San
                        Houston, TX                                Jancinto; Walker; Grimes; Madison; Houston; and, Trinity
                        TX 17 - Newton
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</TABLE>

                                   PCS MARKETS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
STATE                   MARKETS - BTAS                             COUNTIES
----------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                                        <C>
Alabama                 Dothan-Enterprise, AL                      Coffee; Dale; Geneva; Henry; Houston; Cherokee; DeKalb;
                        Gadsden, AL                                Etowah; Autauga; Bullock; Butler; Covington; Crenshaw;
                        Montgomery, AL                             Elmore; Lowndes; Macon; Montgomery; Pike; Chambers; Lee;
                        Opelika-Auburn, AL                         Dallas; Perry; and, Wilcox
                        Selma, AL
----------------------------------------------------------------------------------------------------------------------------------
Florida                 Ft. Myers, FL                              Charlotte; Glades; Hendry; Lee; Indian River; Martin; St.
                        Ft. Pierce-Vero Beach-Stuart, FL           Lucie; Okalossa; Walton; Alachua; Bradford; Dixie;
                        Ft. Walton Beach, FL                       Gilchrist; Levy; Union; Allen; Beauregard; Calcasieu;
                        Gainesville, FL                            Cameron; Jefferson Davis; Polk; Collier; Marion; Bay;
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</TABLE>

                                      B-3
<PAGE>

<TABLE>
<CAPTION>
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STATE                   MARKETS - BTAS                             COUNTIES
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<S>                     <C>                                        <C>
                        Lake Charles, FL                           Gulf; Holmes; Washington; Escambia; Santa Rosa; DeSoto;
                        Lakeland-Winter Haven, FL                  Manatee; Sarasota; Calhoun; Franklin; Gadsden; Jackson;
                        Naples, FL                                 Jefferson; Leon; Liberty; Madison;; Taylor; Wakulla;
                        Ocala, FL                                  Grady; Thomas; Citrus; Hardee; Hernando; Highlands; Pasco;
                        Panama City, FL                            Pinellas; and, Hillsborough
                        Pensacola, FL
                        Sarasota-Bradenton, FL
                        Tallahassee, FL
                        Tampa-St. Petersburg-Clearwater, FL
----------------------------------------------------------------------------------------------------------------------------------
Georgia                 Albany-Tifton, GA                          Jeff Baker; Calhoun; Clay; Colquitt; Decatur; Dougherty;
                        Augusta, GA                                Early; Irwin; Lee; Miller; Mitchell; Randolph; Seminole;
                        Brunswick, GA                              Terrell; Tift; Turner; Worth; Burke; Columbia; Glascock;
                        Columbus, GA                               Jefferson; Jenkins; Lincoln; McDuffie; Richmond;
                        LaGrange, GA                               Taliaferro; Warren; Wilkes; Aiken; Allendale; Barnwell;
                        Savannah, GA                               Edgefield; Glynn; McIntosh; Barbour; Russell;
                        Valdosta, GA                               Chattahoochee; Harris; Marion; Muscogee; Quitman; Schley;
                        Waycross, GA                               Stewart; Sumter; Talbot; Webster; Heard; Troup; Appling;
                                                                   Bryan; Bulloch; Candler; Chatham; Effingham; Emanuel; Evans;
                                                                   Jeff Davis; Liberty; Long; Montgomery; Screven; Tattnall;
                                                                   Toombs; Wayne; Beaufort; Hampton; Jasper; Atkinson; Berrien;
                                                                   Brooks; Clinch; Cook; Echols; Lanier; Lowndes; Bacon; Brantley;
                                                                   Coffee; Pierce; and, Ware.
----------------------------------------------------------------------------------------------------------------------------------
Kentucky                Middlesboro-Harlan, KY                     Bell; Harlan; Letcher; and, Claiborne
----------------------------------------------------------------------------------------------------------------------------------
Louisiana               Alexandria, LA                             Avoyelles; Grant; La Salle; Rapides; Vernon; Winn;
                        Houma-Thibodaux, LA                        Assumption; Lafourche; St. Mary; Terrebonne; Ashley;
                        Monroe, LA                                 Caldwell; Catahoula; East Carroll; Franklin; Madison;
                        Shreveport, LA                             Morehouse; Ouachita; Richland; Tensas; Union; West
                                                                   Carroll; Bienville; Bossier; Caddo; Claiborne; De Soto;
                                                                   Jackson; Lincoln; Natchitoches; Red River; Sabine;
                                                                   Webster; and, Shelby
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Mississippi             Biloxi-Gulfport-Pascagoula, MS             George; Hancock; Harrison; Jackson; Stone; Lamar; Choctaw;
                        Columbus-Starkville, MS                    Clay; Lowndes; Noxubee; Oktibbeha; Webster; Chicot;
                        Greenville-Greenwood, MS                   Bolivar; Carroll; Issaquena; Leflore; Sharkey; Sunflower;
                        Hattiesburg, MS                            Washington; Covington; Forrest; Greene; Marion; Perry;
                        McComb-Brookhaven, MS                      Amite; Lawrence; Lincoln; Pike; Walthall; Concordia;
                        Natchez, MS                                Adams; Franklin; and, Jefferson
----------------------------------------------------------------------------------------------------------------------------------
North Carolina          Ashville-Hendersonville, NC                Avery; Buncombe; Cherokee; Clay; Graham; Haywood;
                        Burlington, NC                             Henderson; Jackson; McDowell; Macon; Madison; Mitchell;
                        Charlotte-Gastonia, NC                     Swain; Transylvania; Yancey; Alamance; Anson; Cabarrus;
                        Fayetteville-Lumberton, NC                 Cleveland; Gaston; Iredell; Lincoln; Mecklenburg;
                        Goldsboro-Kinston, NC                      Richmond; Rowan; Rutherford; Stanley; Union; Chester;
                        Greensboro-Winston-Salem-Highpoint,        Chesterfield; Lancaster; Marlboro; York; Bladen;
                        NC                                         Cumberland; Hoke; Moore; Robeson; Sampson; Scotland;
                        Hickory-Lenoir-Morganton, NC               Duplin; Greene; Lenoir; Wayne; Alleghany; Ashe; Davidson;
                        Jacksonville, NC                           Davie; Forsyth; Guilford; Montgomery; Randolph;
                        New Bern, NC                               Rockingham; Stokes; Surry; Watauga; Wilkes; Yadkin;
                        Raleigh-Durham, NC                         Alexander; Burke; Caldwell; Catawba; Onslow; Carteret;
                        Roanoke Rapids, NC                         Craven; Jones; Bern; Pamlico; Chatam; Durham;
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</TABLE>

                                      B-4
<PAGE>

<TABLE>
<CAPTION>
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STATE                   MARKETS - BTAS                             COUNTIES
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<S>                     <C>                                        <C>
                        Rocky Mount-Wilson, NC                     Franklin; Granville; Harnett; Johnston; Lee; Orange;
                        Wilmington, NC                             Person; Vance; Wake; Warren; Halifax; Northampton;
                                                                   Edgecombe; Nash; Wilson; Brunswick; Columbus; New
                                                                   Hanover; and, Pender
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South Carolina          Anderson, SC                               Henry; Madison; Berkeley; Charleston; Colleton;
                        Charleston, SC                             Dorchester; Georgetown; Williamsburg; Fairfield; Kershaw;
                        Columbia, SC                               Lexington; Newberry; Richland; Saluda; Darlington; Dillon;
                        Florence, SC                               Florence; Marion; Polk; Cherokee; Greenville; Laurens;
                        Greenville-Spartanburg, SC                 Pickens; Spartanburg; Union; Greenwood; McCormick; Horry;
                        Greenwood, SC                              Bamberg; Calhoun; Orangeburg; Clarendon; Lee; and, Sumter;
                        Myrtle Beach, SC
                        Orangeburg, SC
                        Sumter, SC
----------------------------------------------------------------------------------------------------------------------------------
Tennessee               Dyersburg-Union City, TN                   Fulton; Dyer; Lake; Obion; Weakley Carter; Greene;
                        Kingsport, TN-Johnson City, TN-Bristol,    Hawkins; Johnson; Sullivan; Unicoi; Washington; Dickenson;
                        VA/TN                                      Lee; Russell; Scott; Smyth; Wise; Bristol; Norton;
                        Knoxville, TN                              Anderson; Blount; Campbell; Cocke; Cumberland; Grainger;
                                                                   Hamblen; Hancock; Jefferson; Knox; Loudon; McMinn; Monroe;
                                                                   Morgan; Roane; Scott; Sevier; and, Union
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</TABLE>

SBC

Mobile Systems

<TABLE>
<CAPTION>
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STATE                   MARKETS - MSAS AND RSAS                    COUNTIES
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<S>                     <C>                                        <C>
Arkansas                AR1, AR2, AR3, AR4, AR5, AR6,              Calhoun; Ouachita; Union; Madison; Benton; Washington;
                        AR7, AR8, AR10, AR12                       Franklin; Logan; Scott; Crawford; Sebastian; Boone;
                        Fayetteville, Ft. Smith, Little Rock,      Carroll; Newton; Marion; Searcy; Garland; Hot Spring;
                        Pine Bluff                                 Lawrence; Randolph; Craighead; Greene; Poinsett; Clark;
                                                                   Dallas; Grant; Baxter; Izard; Stone; Independence; Jackson;
                                                                   Sharp; Arkansas; Monroe; Cleburne; Prairie; White; Woodruff;
                                                                   Conway; Perry; Van Buren; Faulkner; Lonoke; Pulaski; Saline;
                                                                   Bradley; Cleveland; Desha; Drew; Lincoln; Jefferson; Pope;
                                                                   Yell; Johnson; Chicot; Mississippi; Cross; Lee; Phillips;
                                                                   Fulton; St. Francis Clay; and Ashley
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Arizona                 AZ1                                        Mohave
----------------------------------------------------------------------------------------------------------------------------------
California              CA1, CA2, CA3, CA4, CA5, CA6, CA7, CA8,    Glenn; Butte; Del Norte; Humboldt; Madera; Kern; Imperial;
                        CA9, CA10, CA11, CA12                      Fresno; Mariposa; Merced; Tuolumne; Stanislaus; Monterey;
                        Bakersfield, Chico, Fresno, Los Angeles,   San Luis Obispo; Siskiyou; Trinity; Tehama; Shasta;
                        Modesto, Oxnard, Salinas, Redding,         Alpine; Mono; Nevada; Sierra; El Dorado; Lassen; Plumas;
                        Sacramento,                                Amador; Colusa; Placer; Sacramento; Yolo; San Benito;
                        San Diego, San Francisco,                  Lake; Mendocino; Alameda; Contra Costa; Marin; San
                        San Jose, Santa Barbara,                   Francisco; San Mateo; Santa Clara; Santa; Cruz; Sonoma;
                        Santa Cruz, Santa Rosa, Vallejo,           Napa; Solano; Calaveras; San Joaquin; Kings; Tulare;
                        Stockton, Visalia, Yuba City               Sutter; Yuba; Inyo; Los Angeles; Orange; Riverside; San
                                                                   Bernardino; Ventura; Santa Barbara; and San Diego
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</TABLE>

                                      B-5
<PAGE>

<TABLE>
<CAPTION>
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STATE                   MARKETS - MSAS AND RSAS                    COUNTIES
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<S>                     <C>                                        <C>
Connecticut             CT1, CT2                                   Hartford; Middlesex; Tolland; Litchfield; New Haven;
                        Bridgeport, Hartford, New Haven, New       Windham; New London; and Fairfield
                        London
----------------------------------------------------------------------------------------------------------------------------------
District of Columbia    Washington                                 District of Columbia
----------------------------------------------------------------------------------------------------------------------------------
Delaware                DE1                                        Kent, Sussex, New Castle
                        Wilmington
----------------------------------------------------------------------------------------------------------------------------------
Hawaii                  HI1                                        Kauai
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Illinois                IL2, IL4, IL5, IL6, IL7, IL9               McLean; Livingston; De Witt; Logan; Champaign; Ford; Pike;
                        Bloomington, Champaign, Aurora, Chicago,   Kendall; Cook; DuPage; Kane; Lake; McKenry; Will; Grundy;
                        Joliet, Decatur, Kankakee, Springfield,    Macon; Moultrie; Effingham; Fayette; Shelby; Cass; Greene;
                        St. Louis                                  Morgan; Scott; Iroquois; Kankakee; Bureau; La Salle;
                                                                   Putnam; Marshall; Stark; Mason; Christian; Montgomery;
                                                                   Menard; Sangamon; Clark; Crawford; Edgar; Lawrence;
                                                                   Marion; Adams; Brown; Piatt; Calhoun; Macoupin; Bond;
                                                                   Clinton; Madison; Monroe; and St. Clair
----------------------------------------------------------------------------------------------------------------------------------
Indiana                 IN1, IN3, IN4, IN5, IN6, IN7, IN8, IN9     Lake; Porter; Madison; Henry; Monroe; Greene; Owen;
                        Gary, Anderson, Bloomington,               Lawrence; Orange; Bartholomew; Brown; Jackson; Jennings;
                        Indianapolis, Kokomo, Lafayette,           Putnam; Rush; Decatur; Boone; Hamilton; Hancock;
                        Muncie, Terre Haute, Cincinnati            Hendricks; Johnson; Marion; Morgan; Shelby; Pulaski; Cass;
                                                                   Miami; Howard;  Tipton; White; Carroll; Clinton; Benton;
                                                                   Montgomery; Tippecanoe; Grant; Wabash; Blackford; Jay;
                                                                   Randolph; Delaware; Fayette; Union; Wayne; Parke; Clay;
                                                                   Sullivan; Vermillion;Vigo; Daviess; Knox; Martin; and
                                                                   Dearborn
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Kansas                  KS5, KS10, KS15                            Cherokee; Johnson; Wyandotte; Atchison; Leavenworth;
                        Kansas City, Lawrence, Topeka, Wichita     Douglas; Allen; Crawford; Doniphan; Jefferson; Osage;
                                                                   Shawnee; Chautauqua; Montgomery; Wilson; Butler; and
                                                                   Sedgwick
----------------------------------------------------------------------------------------------------------------------------------
Kentucky                KY7                                        Boone; Campbell; Kenton; Gallatin; Grant; and Pendleton
                        Cincinnati
----------------------------------------------------------------------------------------------------------------------------------
Louisiana               LA6, LA7, LA8, LA9                         Ascension; E. Baton Rouge; Livingston; W. Baton Rouge;
                        Baton Rouge, Houma, New Orleans            Iberville; St. Helena; Tangipahoa; Lafourche; Terebonne;
                                                                   Assumption; St. Mary; Iberia; St. Charles; St. James; St.
                                                                   John-Baptist; Plaqemines; Jefferson; Orleans; St. Bernard;
                                                                   and St. Tammany
----------------------------------------------------------------------------------------------------------------------------------
Maryland                MD2                                        Anne Arundel; Baltimore City; Baltimore County; Carroll;
                        Baltimore, Washington, Wilmington          Hartford; Howard; Charles; Montgomery; Prince George's;
                                                                   Caroline; and Cecil
----------------------------------------------------------------------------------------------------------------------------------
Massachusetts           MA1, MA2                                   Essex; Middlesex; Norfolk; Plymouth; Suffolk; Barnstable;
                        Boston, Pittsfield, New Bedford,           Dukes; Nantucket; Berkshire; Bristol; Franklin; Hampden;
                        Springfield, Worcester                     Hampshire; and Worcester
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Michigan                MI5                                        Lapeer; Livingston; Macomb; Oakland; St. Clair; Washtenaw;
                        Detroit, Flint                             Wayne; Genesee; Shiawassee; Lake; Mason; Benzie; Lee
                                                                   Lanau; Manistee; Missaukee; Osceola; and Wexford
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</TABLE>

                                      B-6
<PAGE>

<TABLE>
<CAPTION>
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STATE                   MARKETS - MSAS AND RSAS                    COUNTIES
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<S>                     <C>                                        <C>
Missouri                MO7, MO8, MO9, MO10, MO11, MO12, MO13,     Jasper; Newton; Barton; McDonald; Cass; Clay; Jackson;
                        MO14, MO15, MO16, MO18, MO19               Platte; Ray; Johnson; Lafayette; Saline; Bates; Henry;
                        Joplin, Kansas City, St. Joseph,           Vernon; Benton; Morgan; Cooper; Pettis; Andrew; Buchanan;
                        Columbia, Springfield, St. Louis           Pemiscot; Bollinger; Cape Girardeau; Perry; Mississippi;
                                                                   New Madrid; Scott; Boone; Howard; Montgomery; Cole;
                                                                   Miller; Moniteau; Osage; Callaway; Wayne; Butler; Dunklin;
                                                                   Stoddard; Dent; Maries; Phelps; Pulaski; Camden; Dallas;
                                                                   Hickory; Polk; Barry; Dade; Lawrence; Douglas; Stone;
                                                                   Taney; Laclede; Texas; Webster; Wright; Christian; Greene;
                                                                   Gasconade; Crawford; St. Francois; Ste. Genevieve;
                                                                   Washington; Madison; Lincoln; Warren; Franklin; Jefferson;
                                                                   St. Charles; and St. Louis
----------------------------------------------------------------------------------------------------------------------------------
Nevada                  NV1, NV2, NV3, NV4, NV5                    Clark; Esmeralda; Nye; Lincoln; Churchill; Humboldt;
                        Las Vegas, Reno                            Pershing; Elko; Eureka; Lander; Carson City; Douglas;
                                                                   Lyon; Storey; Mineral; and Washoe
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New Hampshire           Boston                                     Rockingham
----------------------------------------------------------------------------------------------------------------------------------
New Jersey              NJ2                                        Warren; Monmouth; Middlesex; Ocean; Atlantic; Cape May;
                        Allentown, Long Branch, New Brunswick,     Burlington; Camden; Goucester; Mercer; Cumberland; and
                        Atlantic City, Philadelphia, Trenton,      Salem
                        Vineland, Wilmington
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New York                NY1, NY4                                   Erie; Niagara; Seneca; Yates; Livingston; Monroe; Ontario;
                        Buffalo, Rochester, Albany, Glen Falls,    Orleans; Wayne; Albany; Montgomery; Rensselaer; Saratoga;
                        Syracuse, Utica                            Schenactady; Chenango; Schuyler; Warren; Washington;
                                                                   Tompkins; Cayuga; Cortland; Madison; Oneida; Oswego;
                                                                   Herkimer; Onondaga; Jefferson; Lewis; and St. Lawrence
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Ohio                    OH2, OH3, OH4, OH5, OH6, OH7, OH8, OH10,   Clermont; Hamilton; Warren; Butler; Adams; Brown; Clinton;
                        OH11                                       Highland; Greene; Miami; Montgomery; Preble; Darke; Logan;
                        Cincinnati, Hamilton, Dayton,              Mercer; Shelby; Champaign; Clark; Ashtabula; Carroll;
                        Springfield, Canton, Akron, Cleveland,     Stark; Coshocton; Tuscarawas; Portage; Summit; Cuyahoga;
                        Lorain, Mansfield, Youngstown, Columbus    Geauga; Lake; Medina; Lorain; Holmes; Wayne; Richland;
                                                                   Crawford; Ashland; Columbiana; Erie; Huron; Mahoning;
                                                                   Trumbull; Defiance; Fairfield; Franklin; Madison;
                                                                   Pickaway; Hocking; Union; Fayette; Perry; and Muskingum
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Oklahoma                OK3, OK4, OK6, OK9, OK10                   Ottawa; Le Flore; Sequoyah; Bryan; Atoka; Coal; Pontotoc;
                        Ft. Smith, Oklahoma City, Tulsa            Carter; Johnston; Love; Marshall; Murray; Latimer;
                                                                   Pittsburg; Lincoln; Logan; Garvin; Canadian; Cleveland;
                                                                   McClain; Oklahoma; Kay; Noble; Payne; Washington; Nowata;
                                                                   Haskell; Adair; Cherokee; McIntosh; Muskogee; Pawnee;
                                                                   Craig; Delaware; Hughes; Okmulgee; Creek; Mayes; Osage;
                                                                   Rogers; Tulsa; and Wagoner
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Pennsylvania            PA1, PA3, PA4, PA8, PA11, PA12             Erie; Crawford; Mercer; Carbon; Lehigh; Northampton;
                        Erie, Sharon, Allentown, Harrisburg,       Cumberland; Dauphin; Perry; Juniata; Mifflin; Lebanon;
                        Lancaster, Philadelphia, Reading, State    Lancaster; Bucks; Chester; Delaware; Montgomery;
                        College, Williamsport, York                Philadelphia; Schuylkill; Berks; Centre; Montour;
                                                                   Northumberland; Snyder; Union; Clinton; Sullivan;
                                                                   Lycoming; Adams; and York
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</TABLE>

                                      B-7
<PAGE>

<TABLE>

<CAPTION>
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STATE                   MARKETS - MSAS AND RSAS                    COUNTIES
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<S>                     <C>                                        <C>
Rhode Island            RI1                                        Bristol; Kent; Providence; Washington; and Newport
                        Providence
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Texas                   TX6, TX7, TX9, TX10, TX11, TX15, TX18,     Callahan; Jones; Taylor; Eastland; Potter; Randall;
                        TX19, TX20                                 Collin; Dallas; DeWitt; Ellis; Hood; Johnson; Kaufman;
                        Abilene, Amarillo, Dallas, Killeen,        Parker; Rockwall; Tarrant; Wise; Henderson; Navarro; Van
                        Lubbock, Longview-Marsh, Midland,          Zandt; Cooke; Palo Pinto; Hopkins; Hunt; Erath; Somervell;
                        Odessa, Sherman, Tyler, Waco, Laredo,      Bell; Coryell; Milam; Lampassa; Lubbock; Gregg; Harrison;
                        McAllen, San Antonio, Brownsville,         Panola; Rusk; Camp; Marion; Morris; Upshur; Midland;
                        Corpus Christi                             Ector; Delta; Edwards; Grayson; Fannin; Cass; Anderson;
                                                                   Cherokee; Wood; Smith; Falls; Limestone; Bosque; Hill; McLennan;
                                                                   Jack; Montague; Bee; Refugio; Dimmit; Kinney; Maverick; Val
                                                                   Verde; Zavala; Webb; La Salle; Jim Hogg; Zapata; Hidalgo; Starr;
                                                                   Bexar; Comal; Guadalupe; Bandera; Freestone; Medina; Real;
                                                                   Uvalde; Atascosa; McMullen; Karnes; Wilson; Cameron Willacy;
                                                                   Nueces; San Patricio; Brooks; Duval; Jim Wells; Kenedy; Kleberg;
                                                                   Live Oak; and Aransas
----------------------------------------------------------------------------------------------------------------------------------
Virginia                VA10, VA11, VA12                           Page; Madison; Orange; Fredericksburg City; Spotsylvania;
                        Washington                                 King George; Westmoreland; Caroline; Arlington; Clarke;
                                                                   Fauquier; Frederick; Rappanhannock; Winchester City;
                                                                   Culpeper; Stafford; Alexandria City; Fairfax;
                                                                   Loudoun; Manassas City; Manassas Park City; Prince
                                                                   William; Fairfax City; Falls Church City; Shenandoah;
                                                                   Warren; Accomoack; Mathews; Northampton; Louisa;
                                                                   Essex; King and Queen; King William; Lancaster;
                                                                   Middlesex; Northumberland; and Richmond
----------------------------------------------------------------------------------------------------------------------------------
West Virginia           WV4                                        Grant; Hampshire; Berkeley; Morgan; Hardy; Pendleton; and
                                                                   Jefferson
----------------------------------------------------------------------------------------------------------------------------------
Wisconsin               WI9                                        Kenosha; Fond du Lac; Rock; Walworth; Dane; Columbia;
                        Kenosha, Janesville, Madison, Milwaukee,   Milwaukee; Ozaukee; Washington; Waukesha; Racine; Dodge;
                        Racine, Sheboygan                          Jefferson; and Sheboygan
----------------------------------------------------------------------------------------------------------------------------------

</TABLE>

                                      B-8Exhibit 4.1

                                 FORM OF OPTION

THE  SECURITIES  REPRESENTED BY THIS OPTION HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS. THE
SECURITIES  HAVE BEEN ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR SALE,
SOLD, HYPOTHECATED,  ASSIGNED OR OTHERWISE TRANSFERRED, EXCEPT AS EXPLICITLY SET
FORTH HEREIN.

Option No. Op-________                            Date of Issuance: ____________

                          LIGHTPATH TECHNOLOGIES, INC.

                     OPTION TO PURCHASE CLASS A COMMON STOCK

                          VOID AFTER: DECEMBER 10, 2003

     This certifies  that, for value received,  ____________________________  or
any subsequent permitted holder hereof ("Holder"),  is entitled,  subject to the
terms set forth below, to purchase from LIGHTPATH TECHNOLOGIES, INC., a Delaware
corporation (the  "Company"),  _____________ ( ) shares (the "Option Shares") of
Class A Common  Stock,  $0.01 par value per share,  of the Company  (the "Common
Stock"),  as  constituted  on the date  hereof (the  "Issue  Date"),  subject to
compliance  with relevant  federal and state  securities and blue sky laws, upon
surrender hereof, at the principal office of the Company referred to below, with
the  Notice of  Exercise  form  attached  hereto as Annex A duly  executed,  and
simultaneous  payment  therefor  in  lawful  money of the  United  States at the
Exercise  Price as set  forth in  Section 2 below.  The  number,  character  and
Exercise  Price of such  shares of Common  Stock are  subject to  adjustment  as
provided  below.  The term "Option" as used herein shall include this Option and
any options delivered in substitution or exchange therefor as provided herein.

     1. TERM OF OPTION; VESTING.

          (a)  TERM.  Subject  to the  terms and  conditions  set  forth  herein
(including, without limitation, the vesting conditions set forth in Section 1(b)
below), this Option shall be exercisable during the term (the "Term") commencing
on the effective date of a registration  statement filed by the Company with the
Securities and Exchange  Commission with respect to the  registration  under the
Securities  Act of 1933,  as amended,  of the issuance of the Option Shares upon
exercise hereof (the "Option Effective Date"),  and ending at 5:00 p.m., central
time, on December 10, 2003, and shall be void thereafter.(1)

          (b) No Exercise Prior to Option  Effective Date. This Option shall not
be exercisable as to the Option Shares at any time prior to the Option Effective
Date.

     2. EXERCISE PRICE. This Option will have an exercise price of three dollars
and seventy-three cents ($3.73) per share of Class A Common Stock of the Company
(the "Exercise  Price").  This Option must be exercised for the entire number of
Option  Shares  covered by it; no partial  exercise of this Option is permitted.

----------
(1)  This Option is issued pursuant to that certain "ORDER AND FINAL  JUDGMENT,"
     entered on November 9, 2001, in "LIGHTPATH TECHNOLOGIES,  INC., V. LEEBURG,
     ET AL.," C.A. No. 18021, commenced on May 2, 2000, in the Delaware Court of
     Chancery,   New  Castle  County,   modifying  and  approving  that  certain
     "STIPULATION OF SETTLEMENT," filed on November 17, 2000.

                                       I-1
<PAGE>
The Company  will not be required to honor  attempts to exercise  this Option in
part. The Exercise Price is subject to adjustment only as provided in Section 10
hereof.

     3. EXERCISE OF OPTION.

          (a) EXERCISE MECHANICS. The purchase rights represented by this Option
are  exercisable  by the  Holder  for no less than the  entire  number of Option
Shares  covered by this Option (with such number of Option  Shares being subject
to adjustment  only as provided in Section 10 below),  at any time, or from time
to time,  during  the term  hereof  as  described  in  Section  1 above,  by the
surrender  of this  Option  and the  Notice  of  Exercise  annexed  hereto  duly
completed  and  executed  on behalf of the  Holder,  at the  offices of both the
Option Agent and the Company, as set forth in Section 6(b) herein (or such other
office or agency of the Company as it may  designate by notice in writing to the
Holder at the address of the Holder appearing on the books of the Company), upon
payment in full of the Exercise Price for the Option Shares  acquired,  in cash,
certified or bank funds or wire transfer of immediately available funds.

          (b) DATE OF  EXERCISE.  This  Option  shall  be  deemed  to have  been
exercised  immediately  prior  to the  close  of  business  on the  date  of its
surrender for exercise and payment of the Exercise Price as provided above,  and
the person  entitled to receive the shares of Common  Stock  issuable  upon such
exercise  shall be  treated  for all  purposes  as the  holder of record of such
shares as of the close of business on such date. As promptly as  practicable  on
or after such date, the Company, at its expense,  shall issue and deliver to the
person or persons entitled to receive the same a certificate or certificates for
the number of shares  issuable upon such exercise.  Any provision  herein to the
contrary  notwithstanding,  no Option Shares shall be delivered  hereunder until
the registration  statement filed with the Securities and Exchange Commission to
register the issuance of the Option Shares hereunder shall have become effective
and  remain  effective  under the  Securities  Act of 1933,  as  amended,  and a
prospectus relating thereto shall have been delivered to the Holder.

          (c)  COMPLIANCE  WITH  SECURITIES  LAWS.  The Option  Shares  shall be
stamped or  imprinted  with a legend in  substantially  the  following  form (in
addition to any legend required by state securities laws):

          THE SECURITIES  REPRESENTED  HEREBY MAY NOT BE OFFERED FOR SALE, SOLD,
          HYPOTHECATED, ASSIGNED OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN
          EFFECTIVE  REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
          AMENDED,  AND ANY APPLICABLE  STATE  SECURITIES  LAWS, OR AN EXEMPTION
          THEREFROM UNDER SAID ACT AND APPLICABLE LAWS.

     4. REPLACEMENT OF OPTION. On receipt of evidence reasonably satisfactory to
the Company of the loss,  theft,  destruction or mutilation of this Option,  the
Company shall execute and deliver,  in lieu of this Option, a new option of like
tenor and amount.  At the request of the Company,  the Holder shall  provide the
Company  with an executed  Lost Option  Affidavit  substantially  in the form of
Annex B attached  hereto,  each at the cost of the  Holder,  in order to provide
reasonable protection to the Company concerning the replacement of this Option.

     5. RIGHTS OF STOCKHOLDERS. Subject to Sections 8 and 10 of this Option, the
Holder  shall not be  entitled  to vote or  receive  dividends  or be deemed the
holder of Common  Stock or any other  securities  of the Company that may at any
time be issuable on the  exercise  hereof for any  purpose,  nor shall  anything
contained  herein be  construed to confer upon the Holder,  as such,  any of the
rights of a stockholder  of the Company or any right to vote for the election of
directors or upon any matter  submitted to stockholders at any meeting  thereof,

                                       I-2
<PAGE>
or to give or  withhold  consent  to any  corporate  action  (whether  upon  any
recapitalization,  issuance of stock,  reclassification  of stock, change of par
value, or change of stock to no par value, consolidation, merger, conveyance, or
otherwise)  or to  receive  notice  of  meetings,  or to  receive  dividends  or
subscription  rights or otherwise  until the Option shall have been exercised as
provided herein.

     6. LIMITATIONS ON TRANSFER OF OPTION.

          (a) OPTION REGISTER. The Company will maintain a register (the "Option
Register")  containing  the names and  addresses  of the Holder or Holders.  Any
Holder of this Option or any portion  thereof may change his, her or its address
as shown on the Option Register by written notice to the Company requesting such
change. Any notice or written communication required or permitted to be given to
the  Holder  may be  delivered  or given by mail to such  Holder as shown on the
Option  Register  as the  absolute  owner  of  this  Option  for  all  purposes,
notwithstanding  any notice to the contrary.  The initial  Holder of this Option
hereby  consents to the use of the following  address for purposes of the Option
Register:

                  [HOLDER NAME]
                  [HOLDER ADDRESS]
                  [HOLDER ADDRESS]
                  Telephone: (  ) ___-____
                  Facsimile: (  ) ___-____

          (b) OPTION AGENT.  Continental Stock Transfer and Trust Company is the
Company's agent for the purpose of maintaining  the Option Register  referred to
in Section 6(a) above,  issuing the Option  Shares,  exchanging  this Option and
replacing  this  Option.  Any  such   registration,   issuance,   exchange,   or
replacement,  as the case may be,  shall be made at the  office of such agent as
follows:

                  Continental Stock Transfer and Trust Company
                  2 Broadway, 19th Floor
                  New York, NY  10004
                  Phone: (212) 509-4000
                  Fax: (212) 509-5152

                  with copy to:

                  Donna Bogue
                  Chief Financial Officer
                  LightPath Technologies, Inc.
                  3819 Osuna, N.E.
                  Albuquerque, NM  87109

          (c)  NON-TRANSFERABILITY OF OPTION. This Option may not be offered for
sale, sold, hypothecated,  assigned or otherwise transferred, except (i) by will
or the laws of descent and distribution,  (ii) under a domestic  relations order
in  settlement  of marital  property  rights,  or (iii) to a custodian,  trustee
(including  a trustee of a voting  trust),  executor,  or other  fiduciary  in a
custodial  account,  trust or other  arrangement by which the Holder retains the
entire beneficial interest in the Option.

     7.  RESERVATION OF STOCK.  The Company  covenants that during the Term this
Option is exercisable, the Company will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of Common

                                       I-3
<PAGE>
Stock upon the exercise of this Option, provided,  however, the Company shall at
all times  reserve  the right to issue  treasury  shares to the Holder  upon the
exercise  hereof.  The Company  further  covenants that all Option Shares,  upon
exercise of the rights  represented  by this Option and payment of the  Exercise
Price, all as set forth herein,  will be free from all taxes,  liens and charges
in respect of the issue  thereof  (other  than taxes in respect of any  transfer
occurring  contemporaneously  or otherwise  specified  herein or liens resulting
from the Holder's actions), will be duly authorized,  validly issued, fully paid
and  nonassessable  and will not be issued in violation of any preemptive rights
(whether  statutory,  contractual  or  otherwise).  The Company  agrees that its
issuance of this Option shall  constitute full authority to its officers who are
charged with the duty of executing  stock  certificates to execute and issue the
necessary  certificates  for shares of Common  Stock upon the  exercise  of this
Option.

     8. NOTICES.

          (a)  CERTIFICATE  OF CHIEF  FINANCIAL  OFFICER.  Whenever the Exercise
Price or number of shares  purchasable  hereunder shall be adjusted  pursuant to
Section 10 hereof, the Company shall,  within thirty (30) days of the occurrence
of the event which triggered such adjustment,  issue a certificate signed by its
Chief Financial Officer setting forth, in reasonable detail, the event requiring
the  adjustment,  the  amount  of the  adjustment,  the  method  by  which  such
adjustment  was  calculated,  and  the  Exercise  Price  and  number  of  shares
purchasable hereunder after giving effect to such adjustment,  and shall cause a
copy of such certificate to be mailed (by first-class mail,  postage prepaid) to
the Holder of this Option.  The Company shall, upon the written request,  at any
time, of any such Holder, furnish or cause to be furnished to such Holder a like
certificate  setting forth:  (i) such  adjustments and  readjustments;  (ii) the
Exercise  Price at the time in  effect;  and (iii) the  number of shares and the
amount,  if any, of other  property  that at the time would be received upon the
exercise of the Option.

          (b) NOTICE OF CERTAIN FUNDAMENTAL TRANSACTIONS. In case of:

              (i)   any Extraordinary Transaction, as that term is defined in
                    Section 10(a) hereof;

              (ii)  any reclassification of the capital stock of the Company, or

              (iii) any voluntary dissolution, liquidation or winding-up of
                    the Company,

then, and in each such case, the Company shall promptly send to the Option Agent
and the Option Agent shall  promptly  send the Holders a notice (in such form as
shall be furnished to the Option Agent by the Company) of such  proposed  action
or offer,  such notice to be mailed by the Option  Agent to the Holders at their
addresses as they appear in the Option  Register,  which shall  specify the date
such issuance or event is to take place and the date of participation therein by
the Holders of Common Stock, if any such date is to be fixed,  and shall briefly
indicate  the effect of such  action on the  Common  Stock and on the number and
kind of any other shares of stock and on other property,  if any, and the number
of shares of Common Stock and other property,  if any, purchasable upon exercise
of each Option and the Exercise Price after giving effect to any adjustment,  if
any, which will be required as a result of such action. Any such notice shall be
given by the  Company  at least 20 days  prior to the date of the taking of such
proposed  action or the date of  participation  therein by the Holders of Common
Stock, whichever shall be the earlier.

          (c) DEEMED RECEIPT. All such notices, advices and communications shall
be  deemed to have  been  received  by the  Holder  (i) in the case of  personal
delivery,  on the date of such delivery and (ii) in the case of mailing,  on the
fifth business day following the date of such mailing.

                                       I-4
<PAGE>
     9. AMENDMENTS. This Option may be amended by the parties hereto without the
consent  of any Holder for the  purpose of curing any  ambiguity,  or of curing,
correcting or supplementing any defective  provision  contained herein or making
any other  provisions  with respect to matters or questions  arising  under this
Option as the  Company and the Option  Agent may deem  necessary  or  desirable;
provided, however, that the Company determines, and the Option Agent may rely on
such  determination,  that such action shall not affect  adversely the rights of
the  Holders.  Any  amendment or  supplement  to this Option that has an adverse
effect on the interests of the Holders shall require the written  consent of the
Holders of a  majority  of the then  outstanding  Options.  The  consent of each
Holder  affected  shall be  required  for any  amendment  pursuant  to which the
Exercise  Price would be  increased or the number of Option  Shares  purchasable
upon  exercise  of  Options  would be  decreased  (other  than  pursuant  to the
adjustments provided in Section 10 hereof).

          (a) NO WAIVER. No waivers of, or exceptions to, any term, condition or
provision of this Option,  in any one or more instances,  shall be deemed to be,
or construed as, a further or continuing  waiver of any such term,  condition or
provision.

     10.  ADJUSTMENTS.  The Exercise Price and the number of shares  purchasable
hereunder are subject to adjustment from time to time as follows:

          (a) MERGER,  SALE OF ASSETS,  ETC. If at any time while this Option is
outstanding  and  unexpired  there shall be (i) a  reorganization  (other than a
combination,  reclassification,  exchange  or  subdivision  of shares  otherwise
provided for herein), (ii) a merger or consolidation of the Company with or into
another  corporation  in which the  Company is not the  surviving  entity,  or a
reverse  triangular  merger in which the Company is the surviving entity but the
shares of the  Company's  capital  stock  outstanding  immediately  prior to the
merger are converted by virtue of the merger into other property, whether in the
form of  securities,  cash,  or  otherwise,  or (iii) a sale or  transfer of the
Company's  properties  and assets as, or  substantially  as, an  entirety to any
other person,  then, as a part of such  reorganization,  merger,  consolidation,
sale or  transfer,  (each an  "Extraordinary  Transaction"),  the Options  shall
terminate  on the  effective  date of  such  Extraordinary  Transaction,  unless
provision  is made in such  transaction  in the sole  discretion  of the parties
thereto for the assumption of the Options or the substitution for the Options of
new options of the successor person or entity or a parent or subsidiary thereof,
with  such  adjustment  as the  number  and  kinds of  shares  and the per share
exercise  price as shall be  necessary  to provide  Holders of the options  upon
exercise  thereof with the kind and amount of  securities,  cash or other assets
that such Holder (net of Exercise Price) would have owned  immediately after the
Extraordinary  Transaction  if such Holder had exercised the Option  immediately
before the effective date of the Extraordinary Transaction.  In the event of any
transaction which will result in such termination, the Company shall give to the
Option  Agent  written  notice  thereof.  Until  the  earlier  to  occur of such
effective  date or record date,  the Holders of Options may exercise the Options
in accordance with their terms, but after such effective date or record date, as
the case may be, Holders of Options may not exercise the Options unless they are
assumed or substituted by the successor as provided above.

          (b)  RECLASSIFICATION,  ETC.  If the  Company,  at any time while this
Option remains  outstanding and unexpired,  by reclassification of securities or
otherwise,  shall change any of the securities as to which purchase rights under
this Option exist into the same or a different number of securities of any other
class or classes,  this Option shall  thereafter  represent the right to acquire
such number and kind of  securities as would have been issuable as the result of
such change with  respect to the  securities  that were  subject to the purchase
rights under this Option  immediately  prior to such  reclassification  or other
change and the Exercise  Price  therefor shall be  appropriately  adjusted,  all
subject  to further  adjustment  as  provided  in this  Section 10 and  subject,
further,  to the requirement  that no such adjustment  shall reduce the Exercise
Price to an amount less than the per-share par value of the Option Shares.

                                       I-5
<PAGE>
          (c) SPLIT, SUBDIVISION OR COMBINATION OF SHARES. If the Company at any
time while this Option remains outstanding and unexpired shall split,  subdivide
or combine the securities as to which  purchase  rights under this Option exist,
into a different  number of securities of the same class, the Exercise Price for
such  securities  shall be  proportionately  decreased in the case of a split or
subdivision or proportionately increased in the case of a combination; PROVIDED,
HOWEVER, that no such decrease shall reduce the Exercise Price to an amount less
than the per-share par value of the Option Shares.

          (d)  ADJUSTMENTS  FOR  DIVIDENDS  IN  STOCK  OR  OTHER  SECURITIES  OR
PROPERTY.  If while this Option, or any portion hereof,  remains outstanding and
unexpired the holders of the securities as to which  purchase  rights under this
Option  exist at the time shall have  received,  or, on or after the record date
fixed for the determination of eligible stockholders, shall have become entitled
to  receive,  without  payment  therefor,  other  or  additional  stock or other
securities or property (other than cash) of the Company by way of dividend, then
and in each case, this Option shall represent the right to acquire,  in addition
to the number of shares of the security receivable upon exercise of this Option,
and without payment of any additional consideration therefor, the amount of such
other or additional  stock or other  securities or property (other than cash) of
the Company that such holder would hold on the date of such exercise had it been
the holder of record of the security  receivable upon exercise of this Option on
the date  hereof and had  thereafter,  during the period from the date hereof to
and including the date of such  exercise,  retained such shares and/or all other
additional stock available by it as aforesaid during such period,  giving effect
to all  adjustments  called for during  such  period by the  provisions  of this
Section 10.

          (e) NO  IMPAIRMENT.  The Company  will not, by any  voluntary  action,
avoid or seek to avoid the  observance or  performance of any of the terms to be
observed or performed  hereunder  by the Company,  but will at all times in good
faith assist in the carrying out of all the provisions of this Section 10 and in
the taking of all such action as may be  necessary  or  appropriate  in order to
protect the rights of the Holders of this Option against impairment. The Company
hereby  agrees  that in order to  effectuate  the  purposes  and  intent of this
Agreement,  it will not  increase the par value of the Common Stock prior to the
Termination Date without the prior written consent of the Holder.

     11. MISCELLANEOUS.

          (a) NOTICES.  All notices and other communications from the Company to
the Holder shall be mailed by first class registered or certified mail,  postage
prepaid (unless  specified  otherwise  herein),  at the address contained in the
Option Register.

          (b)  GOVERNING  LAW.  This Option shall be  construed  and enforced in
accordance  with and  governed by the  internal  laws of the State of  Delaware,
other than conflicts of laws principles thereof.

          (c)  HEADINGS.  The  headings  in  this  Option  are for  purposes  of
reference only, and shall not limit or otherwise affect any of the terms hereof.

          (d) SEVERABILITY AND CONFLICTS.  The invalidity or unenforceability of
any provision  hereof shall in no way affect the validity or  enforceability  of
any other provision.

                                       I-6
<PAGE>
     IN WITNESS WHEREOF, LightPath Technologies,  Inc. has caused this Option to
be executed by its officer thereunto duly authorized.

Dated: ________________________

LIGHTPATH TECHNOLOGIES, INC.

By:
Name:    Donna Bogue
Title:   Chief Financial Officer

Address:

LightPath Technologies, Inc.
3819 Osuna, N.E.
Albuquerque, NM  87109

Annexes
-------

Annex A  -  Notice of Exercise
Annex B  -  Affidavit of Loss

                                       I-7
<PAGE>
                                     ANNEX A

                               NOTICE OF EXERCISE

To:  LIGHTPATH TECHNOLOGIES, INC.
     3819 Osuna, N.E.
     Albuquerque, NM  87109

         (1) The  undersigned  hereby  elects to  purchase  _________  shares of
Common  Stock of  LIGHTPATH  TECHNOLOGIES,  INC.,  pursuant  to the terms of the
attached  Option,  and tenders  herewith  payment of the purchase price for such
shares in full as follows:

                -------------------------------------------------

                -------------------------------------------------

                -------------------------------------------------

         (2) In exercising  this Option,  the  undersigned  hereby  confirms and
acknowledges  that the  shares of  Common  Stock to be  issued  upon  conversion
thereof are being acquired  solely for the account of the undersigned and not as
a nominee for any other party, and that the undersigned will not offer,  sell or
otherwise dispose of any such shares of Common Stock, except under circumstances
that will not result in a violation of the  Securities  Act of 1933, as amended,
or any state securities laws.

         (3) Please issue a certificate or certificates representing said shares
of  Common  Stock in the name of the  undersigned  or in such  other  name as is
specified below:

                                        ----------------------------------------
                                        (Name)

                                        ----------------------------------------
                                        (Name)

                                       I-8
<PAGE>
                                     ANNEX B
                            FORM OF AFFIDAVIT OF LOSS

STATE OF                 )
                         ) ss:
COUNTY OF                )

     The undersigned  (hereinafter  "Deponent"),  being duly sworn,  deposes and
says that:

     1. Deponent is an adult whose mailing address is:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

     2. Deponent is the  recipient of an Option (the  "Option")  from  LightPath
Technologies, Inc. (the "Company"), dated ____________ __, 2001 for the purchase
of up to  __________  shares of Common Stock,  par value $.01 per share,  of the
Company, at an exercise price of $________ per share.

     3. The Option has been lost,  stolen,  destroyed  or  misplaced,  under the
following circumstances:

     4. The Option was not endorsed.

     5. Deponent has made a diligent search for the Option,  and has been unable
to find or recover same, and Deponent was the unconditional  owner of the Option
at the time of loss,  and is  entitled  to the  full  and  exclusive  possession
thereof;  that neither the Option nor the rights of Deponent  therein  have,  in
whole or in part, been assigned, transferred, hypothecated, pledged or otherwise
disposed of, in any manner whatsoever,  and that no person,  firm or corporation
other than the Deponent has any right,  title, claim, equity or interest in, to,
or respecting the Option.

     6. Deponent makes this Affidavit for the purpose of requesting and inducing
the Company and its agents to issue a new option in substitution for the Option.

     7. If the Option  should ever come into the hands,  custody or power of the
Deponent or the Deponent's representatives, agents or assigns, the Deponent will
immediately and without  consideration  surrender the Option to the Company, its
representatives,  agents or assigns,  its transfer agents or subscription agents
for cancellation.

                                       I-9
<PAGE>
     8. The Deponent hereby  indemnifies and holds harmless the Company from any
claim or demand for payment or  reimbursement of any party arising in connection
with the subject matter of this Affidavit.

Signed, sealed and dated: _________________________

                                        ----------------------------------------
                                        Deponent

Sworn to and subscribed before me this

____ day of _________________, _________

----------------------------------------
Notary Public

                                       I-10

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