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                                                                    EXHIBIT 10.9

                       AGREEMENT FOR TRANSITION SERVICES

This Agreement for Transition Services is made between GTE Service Corporation,
a New York corporation, with offices at 1255 Corporate Drive, Irving, Texas
75038 and its affiliates (individually and collectively "GTE") on one hand, each
only with respect to the Services (defined below) it provides, and Genuity Inc.,
a Delaware corporation, with offices at 3 Van de Graaff Drive, Burlington,
Massachusetts 01803 ("GENUITY"), and its subsidiaries and successors in
interest, on the other hand.

Whereas, GENUITY desires to obtain certain administrative services including
accounting and cash processing, billing, real estate management, and human
resources services on a transitional basis, with the term of the agreement being
one year or as otherwise set forth in a specific statement of work, terminable
by GENUITY at its sole discretion on 120 days notice; and

Whereas, GTE desires to provide such services to GENUITY.

Now therefore, in consideration of the mutual terms and conditions of this
Agreement, the parties agree as follows:

1.   GENERAL.

(a)  Services.  GENUITY desires to obtain certain administrative transitional
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     services on a non-exclusive basis from GTE or an affiliate company of GTE
     under the terms and conditions of this agreement and statements of work
     ("Statements of Work") entered into by the parties (this agreement and all
     attached Statements of work are collectively referred to as the
     "Agreement"), and GTE or its affiliate shall provide to GENUITY such
     administrative transitional services (individually and collectively,
     "Services"). If there is any conflict or inconsistency between the terms
     and conditions of a Statement of Work and the terms and conditions of this
     Agreement (excluding for this purpose the Statements of Work), the terms
     and conditions of the Statement of Work shall control.

(b)  Statements of Work - Generally.  Each of the Statements of Work entered
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     into by the parties shall: (i) refer expressly to this Agreement; (ii)
     designate the date as of which the provisions of the Statement of Work
     shall be effective and, if applicable, the term or period of time during
     which GTE shall perform Services, provide resources or otherwise discharge
     its obligations as specified in the Statement of Work if different from the
     term set out in this Agreement (excluding for this purpose the Statement of

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     Work); (iii) describe the Services to be performed, Work Product (as
     defined herein) to be delivered, resources to be provided or obligations to
     be discharged by GTE pursuant to the Statement of Work; (iv) describe the
     obligations of GENUITY related to the Statement of Work, including any
     facilities, equipment, personnel and tasks or other support to be provided
     or performed by GENUITY; (v) specify the payments to be made to GTE under
     the Statement of Work, or, if applicable, the basis on which such payments
     shall be computed; and (vi) specify any other terms and conditions
     appropriate to the Services to be performed and the obligations of the
     parties. In the event of conflict or inconsistency between the terms and
     conditions of a Statement of Work and the terms and conditions of this
     Agreement (excluding for this purpose the Statement of Work), the terms and
     conditions of the Statement of Work shall control.

(c)  Milestones, Phases and Timing; Changes.  Each of the Statements of Work
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     shall set out, if applicable, milestones and phases of the work.  When
     phases are specified, GTE shall not be obligated to proceed with work on
     the next phase until GENUITY has provided written authorization to proceed.
     If GENUITY has not provided GTE with written authorization to proceed on a
     specific phase, and it is necessary to commence or complete such phase in
     order to meet any milestones specified in the Statement of Work, GTE shall
     not have any obligations with respect to such milestones and the Statement
     of Work shall be deemed to be modified accordingly. The Statement of Work
     may be modified by mutual written agreement, signed by both parties. No
     verbal changes to the Statement of Work are permitted.

(d)  Performance.  All Services shall be performed in accordance with the terms
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     and conditions of this Agreement and the requirements, order of performance
     and delivery dates specified in each Statement of Work.  GTE shall devote
     such time, efforts and resources to the performance of Services as are
     necessary to accomplish the tasks specified in any Statement of Work.  GTE
     may call upon the expertise and/or assistance of its affiliates,
     subcontractors or consultants in the performance of such Services, provided
     that GTE shall obtain the prior written consent of GENUITY in the event it
     desires to use outside subcontractors or consultants.  If a Statement of
     Work specifies that some or all of the work will be done by a
     subcontractors or consultant, no additional approval shall be required.

(e)  Third Party Software Licenses.  GENUITY acknowledges that GTE and its
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     affiliates may be required to use certain software licensed to GTE by third
     parties to provide Services pursuant to this Agreement.  If any licensor of
     such third party software requires the payment of any

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     consideration to permit GTE to use the vendor's software in order to
     perform its obligations under this Agreement, GTE shall provide GENUITY
     with thirty (30) days prior written notice of such additional
     consideration. GENUITY shall have the option to (i) procure its own license
     to such software at its own expense, or (ii) authorize GTE to incur such
     required additional consideration on its behalf and at GENUITY'S expense.
     In the event that GENUITY does not agree to either (i) or (ii) above, GTE
     shall not be required to provide the Services for which such third party
     licenses are required. If the third party requires GENUITY to secure rights
     in such third party software to receive the Services or to use the result
     of such Services, GENUITY shall be responsible for securing such rights at
     its own cost and expense.

2.   COMPENSATION AND BILLING.

(a)  Invoices.  The charges for the Services shall be set out in the applicable
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     Statement of Work. GTE shall invoice GENUITY for Services in accordance
     with the payment schedule set forth in the applicable Statement of Work.
     Each invoice shall reference this Agreement and the applicable Statement of
     Work.  The invoices shall be itemized to show the details as to all billed
     items.  Payments shall be made within thirty (30) days from the date each
     invoice is received by GENUITY.

(b)  Sales, Use and Other Taxes.  In addition to the charges for Services,
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     GENUITY shall pay GTE an amount equal to any sales, use, privilege, gross
     revenue, excise, or any other tax (except income and franchise taxes), as
     well as any assessments or duties with respect to the Services lawfully
     levied by a duly constituted governmental authority and for which GTE is
     required, by law, to collect from GENUITY.  In addition each party shall be
     responsible for all real and personal property taxes imposed on software
     and equipment owned by the respective parties on January 1 of every year.
     If GENUITY determines that any Services are exempt from a tax, GENUITY must
     provide GTE a properly completed exemption certificate, for each
     jurisdiction for which GENUITY is claiming an exemption, before GTE will
     exclude the respective tax from amounts charged to GENUITY.  GENUITY will
     not deduct any tax amount from remittances to GTE until a properly
     completed exemption certificate, for all jurisdictions for which GENUITY is
     claiming an exemption, has been provided to GTE.

(c)  Expense Reimbursement.  GENUITY shall reimburse GTE for reasonable expenses
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     for travel, meals and lodging incurred by GTE in the performance of its
     obligations under this Agreement.  Any such

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     charges shall be in compliance with GTE's employee expense policies. There
     shall be no mark-up of such expense charges. GTE shall maintain
     documentation of expenses incurred, and shall provide copies of invoices of
     $100 or more upon GENUITY's request. GTE shall bill GENUITY monthly for
     expenses as they accrue. The parties will specify any limitation on the
     reimbursement of expenses in the applicable Statement of Work. It is
     acknowledged and agreed that if GTE is reasonably required to incur
     expenses beyond such limitation in order to provide the Services, then GTE
     is excused from performing such Services until said expense limitation is
     removed or changed as mutually agreed, provided that GTE promptly notifies
     GENUITY of the need to exceed the limitation.

(d)  Records.  GTE shall maintain complete and accurate records in a form
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     consistent with generally accepted accounting practices, to substantiate
     GTE charges.  GTE shall retain, and make available upon request, such
     records for a period of three (3) years from the date of invoice for
     Services.  GENUITY and its authorized agents, subject to obligations of
     confidentiality as set forth in this Agreement, shall have access to such
     records upon prior written request during normal business hours during the
     term of this Agreement and during the respective periods in which GTE is
     required to maintain such records pursuant to this subsection.  Access to
     the records shall be made at the location where such records are normally
     maintained.

3.   TERM.

     This Agreement is effective as of _____________ and shall continue in
     effect for a term of one (1) year, or such term as may be set out in a
     Statement of Work, or until GENUITY exercises its right in its sole
     discretion to terminate for convenience under Section 24 (c) of this
     Agreement. This Agreement shall remain in effect with respect to and for
     the duration of any Statement of Work that is agreed by the parties to
     extend beyond the end of the term.  In the event of any termination or
     expiration, the Parties agree to reasonably cooperate in transitioning the
     work to any successor service provider, and upon GENUITY's request and at
     its expense, GTE shall use commercially reasonable efforts to secure
     GENUITY's continued use of applicable third party licenses.

4.   ACCEPTANCE.

(a)  Acceptance. Each Statement of Work shall specify the criteria that GTE must
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     meet in order for the Work Products described in the Statement of Work to
     be accepted by GENUITY.  It shall also specify a test plan, and such other
     information as GTE and GENUITY

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     mutually deem appropriate and the period of time that GENUITY shall have
     to review such Work Product and provide notice of acceptance or rejection
     to GTE. Failure to accept or reject such Work Product within the
     specified period of time or the commercial use of such Work Product by or
     for the benefit of GENUITY shall be deemed to be acceptance.

(b)  Rejection and Revision.  If GENUITY rejects any Work Product, it shall
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     specify in reasonable detail in writing the reasons for rejection and the
     requirements for revision.  If the notice of rejection is not sufficiently
     detailed to allow GTE to determine why such Work Product is unacceptable,
     GTE may request in writing that GENUITY provide sufficient additional
     information.  If GTE and GENUITY have joint responsibility for the Work
     Product and the Work Product requires revision, GTE shall assist GENUITY in
     making revisions necessary for the Work Product to meet the acceptance
     criteria within a period of time that is reasonable under the
     circumstances.  If GTE has sole responsibility for the Work Product, then
     it shall make the necessary revisions within a period of time that is
     reasonable under the circumstances.

5.   CONFIDENTIAL INFORMATION.

(a)  Confidentiality.  In the course of requesting and performing Services
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     pursuant to this Agreement, each party may receive or acquire from the
     other information or data pertaining to specifications, drawings, sketches,
     models, samples, computer programs, methods, concepts, know-how,
     techniques, processes, and other technical or business information that the
     other party desires to protect against unauthorized use or further
     disclosure.  Unless otherwise expressly set forth in a Statement of Work,
     for purposes of this Agreement, "Confidential Information" shall mean:  (i)
     any information in written, other tangible or electronic form which is
     labeled by the disclosing party as "confidential", "proprietary" or with a
     legend of similar import; (ii) software in any form (including related
     documentation), whether or not labeled in accordance with the preceding;
     (iii) Services and Work Products provided pursuant to this Agreement, with
     the ownership of and proprietary interest therein being defined in the
     applicable Statement of Work; or (iv) information orally disclosed and
     identified as confidential at the time of such disclosure which is
     summarized in writing within thirty (30) days of such disclosure.  Each
     party shall remain the exclusive owner of its Confidential Information.

(b)  Use of Confidential Information.  The Confidential Information of the
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     disclosing party may be used by the receiving party only for the
     performance or use of Services or Work Products to be provided pursuant

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     to this Agreement and may only be disclosed to those employees,
     subcontractors or agents of the receiving party who have a need to know in
     order to perform or use Services or Work Products pursuant to this
     Agreement. Except and to the extent set forth in Section 5(c), the
     receiving party may not disclose Confidential Information of the other
     party to any other person, entity, or the public without the prior written
     consent of the disclosing party. However, such Confidential Information may
     be disclosed by the receiving party without the necessity of prior written
     consent, to the receiving party's subcontractors or consultants who require
     access to such Confidential Information to perform or use the Services
     under this Agreement, provided such persons have entered into written
     agreements which contain obligations of nondisclosure and nonuse no less
     restrictive than set forth in this Section. It is agreed that such written
     agreements shall be enforceable by the disclosing party.

(c)  Exceptions.  The obligations in Section 5(b) shall not apply to that
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     portion of any information received from the disclosing party which is:
     lawfully in the receiving party's possession, with no restriction on use or
     disclosure, prior to its acquisition from the disclosing party; received in
     good faith by the receiving party, with no restrictions on use or
     disclosure, from a third party not subject to any confidential obligation
     to the disclosing party; now or later becomes publicly known through no
     breach of confidential obligation by the receiving party; released by the
     disclosing party to any other person, firm or entity (including
     governmental agencies or bureaus) without restriction on use or disclosure;
     or independently developed by or for the receiving party without any
     reliance on or use of Confidential Information of the disclosing party.

(d)  Disclosure and Notification.  If a receiving party receives a request to
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     disclose any Confidential Information of the disclosing party (whether
     pursuant to a subpoena, an order issued by a court or other governmental
     authority of competent jurisdiction or otherwise) and, on advice of legal
     counsel, determines that disclosure is required under applicable law, the
     receiving party agrees that, prior to disclosing any Confidential
     Information of the disclosing party, it shall (i) notify the disclosing
     party of the existence and terms of such request or advice, (ii) cooperate
     with the disclosing party in taking legally available steps to resist or
     narrow any such request or to otherwise eliminate the need for such
     disclosure at the disclosing party's sole expense, if requested to do so by
     the disclosing party, and (iii) if disclosure is required, it shall be the
     obligation of the disclosing party to use its commercially reasonable
     efforts to obtain a protective order or other reliable assurance that
     confidential treatment shall be afforded to such portion of the
     Confidential Information of the disclosing party as is required to be
     disclosed.

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(e)  Continuing Obligation.  The obligation of non-disclosure and non-use with
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     respect to Confidential Information of the disclosing party shall survive
     termination of this Agreement and shall continue for a period of 5 years
     thereafter, provided that the obligations of non-disclosure and non-use
     shall continue in perpetuity for software included in Confidential
     Information.

6.   OWNERSHIP AND LICENSE OF WORK PRODUCTS.

(a)  Ownership.  Unless expressly provided otherwise in the applicable Statement
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     of Work, the ownership of any and all right, title and interest in and to
     work products (including without limitation: computer programs and
     documentation; photographs; logos; drawings; artistic and graphical works;
     reports; data; information; and other works of authorship) made by Service
     Provider, or its suppliers or contractors, during performance of Services
     for Service Recipient in accordance with the applicable Statement of Work
     (all such works herein "Work Products"), shall be determined in accordance
     with the terms and conditions of the Software Development and Technical
     Services Agreement relating to ownership of intellectual property, with
     those terms and conditions being applied to any Statement of Work issued
     hereunder and being incorporated herein in their entirety by this
     reference.

(b)  License.  Unless expressly provided otherwise in the applicable Statement
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     of Work:

          (1)  If Service Provider owns any Work Products, any license granted
               to Service Recipient by Service Provider in or to any such Work
               Products shall be on the same terms and conditions as the license
               grant by GTE to GENUITY contained in the Software License
               Agreement, with such terms and conditions being incorporated
               herein in their entirety by this reference.

          (2)  If Service Recipient owns any Work Products, and subject to
               Service Provider's obligations with respect to Service
               Recipient's Confidential Information, Service Provider shall
               retain a non-exclusive, perpetual, world-wide, royalty-free
               license to use any such Work Product for its ordinary and usual
               business purposes.

7.   DISPUTE RESOLUTION.

(a)  General.  Except as provided in subparagraph 7(d) below, any controversy or
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     claim arising out of or relating to this Agreement, or the

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     breach thereof, shall attempt to be settled first, by good faith efforts of
     the parties to reach mutual agreement, and second, if mutual agreement is
     not reached to resolve the dispute, by final, binding arbitration as set
     out in paragraph 6(c) below.

(b)  Initial Resolution. A party that wishes to initiate the dispute resolution
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     process shall send written notice to the other party with a summary of the
     controversy and a request to initiate these dispute resolution procedures.
     Each party shall appoint a knowledgeable, responsible representative from
     the company who has the authority to settle the dispute, to meet and
     negotiate in good faith to resolve the dispute.  The discussions shall be
     left to the discretion of the representatives, who may utilize other
     alternative dispute resolution procedures such as mediation to assist in
     the negotiations.  Discussions and correspondence among the representatives
     for purposes of these negotiations shall be treated as Confidential
     Information developed for purposes of settlement, shall be exempt from
     discovery and production, and shall not be admissible in the arbitration
     described above or in any lawsuit pursuant to Rule 408 of the Federal Rules
     of Evidence.  Documents identified in or provided with such communications,
     which are not prepared for purposes of the negotiations, are not so
     exempted and may, if otherwise admissible, be admitted in evidence in the
     arbitration or lawsuit.  The parties agree to pursue resolution under this
     subsection for a minimum of 60 days before requesting arbitration.

(c)  Arbitration.  If the dispute is not resolved under the preceding subsection
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     within 60 days of the initial written notice, either party may demand
     arbitration by sending written notice to the other party.  The parties
     shall promptly submit the dispute to the American Arbitration Association
     for resolution by a single neutral arbitrator acceptable to both parties,
     as selected under the rules of the American Arbitration Association.  The
     dispute shall then be administered according to the American Arbitration
     Association's Commercial Arbitration Rules, with the following
     modifications:  (i) the arbitration shall be held in a location mutually
     acceptable to the parties, and if the parties do not agree, the location
     shall be New York City; (ii) the arbitrator shall be licensed to practice
     law; (iii) the arbitrator shall conduct the arbitration as if it were a
     bench trial and shall use, apply and enforce the Federal Rules of Evidence
     and Federal Rules of Civil Procedure; (iv) except for breaches related to
     Confidential Information the arbitrator shall have no power or authority to
     make any award that provides for consequential, punitive or exemplary
     damages; (v) the arbitrator shall control the scheduling so that the
     hearing is completed no later than 60 days after the date of the demand for
     arbitration; and (vi) the arbitrator's decision shall be given within 5
     days thereafter in summary form that states the award, without written
     decision, which shall follow the

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     plain meaning of this Agreement, the relevant documents, and the intent of
     the parties. Judgment on the award rendered by the arbitrator may be
     entered in any court having jurisdiction over the parties. Each party to
     the dispute shall bear its own expenses arising out of the arbitration,
     except that the expenses of the facilities to conduct the arbitration and
     the fees of the arbitrator shall be shared equally by the parties.

(d)  Injunctive Relief.  The foregoing notwithstanding, each party shall have
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     the right to seek injunctive relief in an applicable court of law or equity
     independent of any resolution of the dispute in accordance with the
     foregoing.

8.   RELATIONSHIP OF PARTIES.

(a)  Independent Contractors.  In providing any Services pursuant to this
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     Agreement, GTE and its affiliates are independent contractors and not
     agents or representatives of GENUITY.  Persons furnished by the respective
     parties shall be solely the employees or agents of such parties,
     respectively, and shall be under the sole and exclusive direction and
     control of such parties.  They shall not be considered employees of the
     other party or parties for any purpose.  Each party shall also be
     responsible, respectively, for payment of taxes, including federal, state,
     and municipal taxes, chargeable or assessed with respect to its employees
     or agents, such as social security, unemployment, worker's compensation,
     disability insurance and federal and state income tax withholding.

(b)  No Performance.  Neither party undertakes by this Agreement or any
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     Statement of Work to conduct the business or operations of the other party.
     Nothing contained in this Agreement or any Statement of Work is intended to
     give rise to a partnership or joint venture between the parties or to
     impose upon the parties any of the duties or responsibilities of partners
     or joint venturers.

9.   FORCE MAJEURE.

     If performance of any Services under this Agreement is prevented,
     restricted or interfered with by reason of acts of God, wars, revolution,
     civil commotion, acts of public enemy, embargo, acts of government in its
     sovereign capacity, labor difficulties, including without limitation,
     strikes, slowdowns, picketing or boycotts, communication line failures,
     power failures, or any other circumstances beyond the reasonable control
     and not involving any fault or negligence of the party affected, the party
     affected, upon giving prompt notice to the other party, shall be excused
     from such performance on a day-to-day basis during the continuance of

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     such prevention, restriction, or interference (and the other party shall
     likewise be excused on a day-to-day basis during the same period, from
     performance of its obligations which are dependent upon or affected by such
     nonperformance), provided, however, that the party so affected shall use
     its commercially reasonable efforts to avoid or remove such causes of
     nonperformance and both parties shall proceed immediately with the
     performance of their obligations under this Agreement whenever such causes
     are removed or cease.

     If a force majeure condition continues to prevent a party from performing
     for more than (30) consecutive days, then the other party may terminate the
     applicable Statement of Work.

10.  REGULATORY COMPLIANCE.

(a)  Cooperation.  This Agreement is subject at all times to any statute,
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     order, rule, or regulation or any state or federal regulatory agency having
     competent jurisdiction over one or both of the parties hereto or the
     Services provided hereby. The parties agree to cooperate with each other
     and with any applicable regulatory agency so that any and all necessary
     approvals may be obtained. During the term of this Agreement, the parties
     agree to continue to cooperate with each other in any review of this
     Agreement by a regulatory agency so that the benefits of this Agreement may
     be achieved.

(b)  Filing Agreement.  Notwithstanding the effective date and term of this
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     Agreement as stated elsewhere, to the extent that any statute, order, rule
     or regulation or any regulatory agency having competent jurisdiction over
     one or both parties to this Agreement, shall require that this Agreement or
     subsequent amendment be filed with or approved by such regulatory agency
     before the Agreement or amendment may be effective, this Agreement or
     amendment shall not be effective in such jurisdiction until the first
     business day after such approval or filing shall have occurred.

11.  INDEMNIFICATION.

(a)  General.  GTE and GENUITY, to the fullest extent permitted by law, each
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     shall defend, indemnify and hold harmless the other and its affiliates,
     officers, agents and employees from any and all amounts payable under any
     judgment, verdict, court order or settlement (and associated fees and
     disbursements of counsel) arising from or related to any third-party claims
     for injury, sickness, disease or death of any person or damage to any real
     or tangible personal property or assets to the extent arising from the
     indemnitor's (either directly or through its officers, agents,
     subcontractors or representatives) negligence or willful misconduct in the

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     performance of this Agreement provided, however, that if a claim is the
     result of the joint negligence or joint willful misconduct of GTE and
     GENUITY, the amount of the claim for which each party is entitled to
     indemnification shall be limited to that portion of such claim that is
     attributable to the negligence or willful misconduct of the indemnifying
     party. The parties agree that the price for Services provided under this
     Agreement includes consideration for the obligation to indemnify as set out
     in this Section.

(b)  Losses.  GENUITY and GTE each shall be responsible for any and all claims,
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     actions, damages, liabilities, costs and expenses, including reasonable
     attorneys' fees and expenses (collectively, "Losses"), to their respective
     tangible personal or real property (whether owned or leased), and each
     party agrees to look only to its own insuring arrangements (if any) with
     respect to such Losses. Subject to the procedures set forth below, each
     party shall indemnify, defend, and hold the other party harmless from any
     and all Losses arising out of, under or in connection with claims for which
     the indemnitor is responsible under the preceding sentence.

(c)  Waivers.  GENUITY and GTE waive all rights to recover against each other
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     for any Loss to their respective tangible personal property (whether owned
     or leased) from any cause covered by insurance maintained by each of them,
     including their respective deductibles or self-insured retentions.  GENUITY
     and GTE shall cause their respective insurers to issue appropriate waivers
     of subrogation rights endorsements to all property insurance policies
     maintained by each Party.  Each Party shall give the other written notice
     if a waiver of subrogation is unobtainable or obtainable only at additional
     expense.  If the Party receiving such notice agrees to reimburse the other
     Party for such additional expense, the other Party shall obtain such waiver
     of subrogation.  If a waiver is unobtainable or if a Party elects not to
     pay the additional expense of a waiver, then neither Party nor their
     insurers shall waive such subrogation rights.

(d)  Defense.  Except as otherwise set forth in the applicable Statement of
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     Work, and subject to the limitations and procedures set forth below, GTE
     agrees to defend GENUITY against any action to the extent that such action
     is based upon a claim that the Service provided by GTE pursuant to this
     Agreement (i) infringes a United States copyright, (ii) infringes a United
     States patent or (iii) constitutes an unlawful disclosure, use or
     misappropriation of another party's trade secret and not as the result of
     any prohibited use or transfer by GENUITY.  GTE shall bear the expense of
     such defense and pay any Losses finally

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     awarded by a court of competent jurisdiction that are directly attributable
     to such claim.

(e)  Contributory Infringement.  GTE shall not be liable to GENUITY for claims
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     of indirect or contributory infringement.  Further, GTE shall have no
     liability to GENUITY hereunder if (i) the claim of infringement is based
     upon the use of Services or Work Products provided by GTE hereunder in
     connection or in combination with equipment, devices, data or software not
     supplied by GTE, and such infringement would not have occurred but for such
     use, (ii) such Services or Work Products are used outside of the scope of
     the rights and licenses granted to GENUITY; (iii) the Services or Work
     Products are modified by or for GENUITY (including by GTE at GENUITY's
     direction or instructions), and such infringement would not have occurred
     but for such modification; (iii) GENUITY uses any of the Services or Work
     Products in the practice of a patented process and there would be no
     infringement in the absence of such practice, or (iv) the claim of
     infringement arises out of the GTE's compliance with written directions
     provided by GENUITY and such infringement would not have occurred but for
     such compliance.  For all of the foregoing exclusions, GENUITY shall defend
     and indemnify GTE for any infringement claims to the extent set forth in
     Section 11(d).

(f)  Mitigation.  If a Service or Work Product becomes the subject of an
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     infringement claim, or in GTE's opinion is likely to become the subject of
     such a claim, then, in addition to defending the claim and paying any
     damages and attorneys' fees as required above, GTE may, at its option and
     in its sole discretion, and at its own cost and expense: (i) replace or
     modify such Service or Work Product to make it noninfringing or cure any
     claimed misuse of any third party trade secret; (ii) procure for GENUITY
     the right to continue using such Service or Work Product pursuant to this
     Agreement; or if neither (i) nor (ii) are possible at a commercially
     reasonable cost, (iii) require the return of such Service or Work Product,
     terminate the Statement of Work (to the extent it has not yet been
     completed) and terminate GENUITY's right to use the same and refund to
     GENUITY a pro-rata portion of the amount actually paid to GTE by GENUITY
     for such Service or Work Product.  Notwithstanding the foregoing, if GTE
     exercises its right to require the return of such Service or Work Product
     and terminates GENUITY's right to use the same, to the extent permitted by
     applicable law, GENUITY may retain and continue to use such Service Work
     Product to the extent GENUITY agrees in writing to defend and indemnify GTE
     for any and all  expenses, costs and liabilities associated with such
     continued possession and use of such

                                                                  Page 12 of 114
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     Service or Work Product. The foregoing sets forth GTE's sole and exclusive
     obligations, and GENUITY's sole remedies, for infringement of intellectual
     property by Services or Work Product.

(g)  Conditions.  The indemnification obligations set forth in this Section
     ----------
     shall not apply unless the party claiming indemnification:  (i) notifies
     the other promptly in writing of any matters in respect of which the
     indemnity may apply and of which the notifying party has knowledge, in
     order to allow the indemnitor the opportunity to investigate and defend the
     matter; provided, however, that the failure to so notify shall only relieve
     the indemnitor of its obligations under this Section if and to the extent
     that the indemnitor is prejudiced thereby; and (ii) gives the other party
     full control of the response thereto and the defense thereof, including any
     agreement relating to the settlement thereof.  However, if the indemnitor
     fails to promptly assume the defense of the claim, the party entitled to
     indemnification may assume the defense at the indemnitor's cost and
     expense.  The indemnitor shall not be responsible for any settlement or
     compromise made without its prior written consent, unless the indemnitee
     has tendered notice and the indemnitor has then refused to assume and
     defend the claim and it is later determined that the indemnitor was
     obligated to assume and defend the claim.  The indemnitee agrees to
     cooperate in good faith with the indemnitor at the request and expense of
     the indemnitor.

12.  LIMITATION OF LIABILITY.

(a)  General.  A party's and its affiliates' liability arising out of or
     -------
     relating to a Statement or Statements of Work and this Agreement, including
     without limitation on account of performance or nonperformance of
     obligations hereunder, regardless of the form of the cause of action,
     whether in contract, tort (including without limitation negligence),
     statute or otherwise, shall in no event exceed the lesser of (i) the price
     to be paid to GTE for the completed Statement of Work (whether set out as a
     fixed price, estimated price, not-to-exceed amount, or other similar
     expression of the total price for the work to be performed under the
     Statement of Work); or (ii) the amount actually paid by GENUITY to GTE for
     the particular Statement of Work from which the claim arises. The
     limitation in the immediately preceding sentence does not apply to a
     party's obligations under the Sections entitled Indemnification and
     Confidential Information, nor does it apply to willful misconduct or gross
     negligence on the part of a party.

(b)  Limitation.  EXCEPT FOR BREACHES RELATED TO CONFIDENTIAL INFORMATION,
     ----------
     NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL,
     PUNITIVE, EXEMPLARY, SPECIAL

                                                                  Page 13 of 114
<PAGE>

     OR CONSEQUENTIAL DAMAGE OR LOST PROFITS OF ANY KIND WHATSOEVER EVEN IF A
     PARTY OR ITS AFFILIATES HAVE BEEN APPRISED OF THE LIKELIHOOD OF SUCH
     DAMAGES OCCURRING.

(c)  Benefits Under Licenses.  Anything contained herein to the contrary
     -----------------------
     notwithstanding, this Agreement shall not constitute an agreement to start
     work, to provide Services or Work Product or to make available to GENUITY
     the benefits under any agreement, license or arrangement if doing so
     without the consent of and/or payment to another party thereto would
     constitute a breach thereof or in any material way affect the rights of GTE
     thereunder, unless and until such consent is obtained and payment, if any,
     made to such party by GTE, provided however, that GTE will use commercially
     reasonable efforts to secure such consents and benefits under any such
     agreement or arrangement.  If GTE cannot: (i) obtain such consent; or (ii)
     GTE and the third party vendor cannot agree on a commercially reasonable
     payment, if such is required, or (iii) if providing the Services or Work
     Products or making the benefits under any such agreement, license or
     arrangement available would materially affect GTE's rights thereunder, GTE
     shall not be required to provide any Services or Work Products which are
     dependent upon such agreement, license or arrangement. GENUITY may,
     however, obtain the requisite license or rights, or pay such fees necessary
     for GTE to provide the Services.

13.  CHANGES IN MANNER OF PROVIDING SERVICES.

     GENUITY acknowledges that GTE and its affiliates may in the future
     determine to outsource certain information technology functions or perform
     such functions using different computer software operating systems or
     applications.  These changes may prevent GTE from providing certain
     Services or Work Products to GENUITY pursuant to this Agreement in the
     manner in which they have been provided prior to such change.  In the event
     GTE determines to take any such action, it will provide GENUITY with one
     hundred twenty (120) days prior written notice and will cooperate with
     GENUITY to enable GENUITY to continue to receive any affected Services and
     Work Products through arrangements with GTE's outsource providers or
     through conversion of GENUITY data for use on such operating systems or
     applications.  In the event GTE determines to make such changes, GENUITY
     shall have the right to terminate this Agreement or any affected STATEMENT
     OF WORK without any liability or penalty. Any customizations requested by
     GENUITY within or to the systems utilized by GTE to provide the Services
     shall be at GTE's discretion. GENUITY shall be required to pay the mutually
     agreed upon cost of such customizations.

                                                                  Page 14 of 114
<PAGE>

14.  INSURANCE.

(a)  Coverage.  GTE agrees to maintain in full force and effect during the term
     --------
     of this Agreement, and so long as the indemnity obligations hereunder are
     in effect, for GTE the following minimum insurance coverages:  (i) Worker's
     Compensation and Occupational Disease covering GTE's full liability under
     the Statutory Workers' Compensation Laws for the state in which the Service
     is being performed; (ii) Employer's Liability Insurance in the minimum
     amount of $100,000 per accident, $100,000 disease per employee, and
     $500,000 disease aggregate;  (iii) General Liability Insurance - Broad
     Form, including, but not limited to GTE's Protective Liability, Blanket
     Contractual Liability and Products Liability/Completed  Operations in the
     minimum amounts of $1,000,000 per occurrence; and (iv) If the use of motor
     vehicles is required, comprehensive Motor Vehicle Liability Insurance to
     include, but not limited to owned, non-owned, leased, and hired vehicles in
     the minimum amounts of $1,000,000 combined single limit per occurrence for
     Property Damage and any accident resulting in bodily injury or the death of
     one or more persons, and the consequential damages arising therefrom.

(b)  Certificates of Insurance.  Certificates of Insurance, incorporating the
     -------------------------
     above-described endorsements, shall be furnished to GENUITY upon request.

15.  REPRESENTATIONS AND WARRANTIES.

     GTE represents, warrants, and covenants to GENUITY that:

(a)  In performing Services, GTE shall comply with all applicable laws, codes,
     ordinances, orders, rules and regulations of local, state, and federal
     governments and agencies and instrumentalities, including, but not limited
     to, applicable wage and hour, safety and environmental laws, and all
     standards and regulations of appropriate regulatory commissions and similar
     agencies.

(b)  All Services furnished by GTE shall be performed by qualified personnel at
     a level of professional performance standard within the industry in which
     the Services are provided.

(c)  GTE has all rights and licenses to perform the Services contemplated by
     this Agreement and any Statement of Work incorporated herein.

(d)  THE WARRANTIES IN THIS SECTION 15 AND ANY WARRANTY IN A STATEMENT OF WORK,
     BUT ONLY IF SPECIFICALLY IDENTIFIED

                                                                  Page 15 of 114
<PAGE>

     AS AN EXPRESS WARRANTY IN SUCH STATEMENT OF WORK (INCLUDING SERVICE LEVEL
     AGREEMENTS), ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, OR
     WHETHER ARISING BY COURSE OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE
     TRADE OR PROFESSION OR OTHERWISE, INCLUDING BUT NOT LIMITED TO, IMPLIED
     WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR
     WARRANTIES AGAINST INFRINGEMENT. Except for the warranties expressly set
     forth in this Section 15 and any Statement of Work, GENUITY acknowledges
     and agrees that it has relied on no other representations or warranties and
     that no other representations or warranties have formed the basis of its
     bargain hereunder.

(e)  All representations, warranties and covenants of GTE contained in this
     Section shall continue for the term of this Agreement and shall survive its
     termination.

16.  ASSIGNMENT AND SUBCONTRACTING.

(a)  Neither this Agreement nor any rights or obligations hereunder shall be
     assignable by either of the parties hereto; provided that GTE may delegate
     all or any portion of its obligations to perform Services under this
     Agreement to one or more of its affiliates or either party may assign to
     any affiliate without the consent of the other party.

(b)  GTE may use subcontractors to perform the Services under this Agreement as
     specified in Section 1(d).  GTE shall be responsible for the fulfillment of
     its obligations hereunder, notwithstanding the performance of such
     obligations by its subcontractors.

17.  EQUAL EMPLOYMENT.

(a)  General Compliance.  Without limitation of Section 18, COMPLIANCE WITH
     ------------------
     LAWS, each party shall comply with applicable laws concerning employment,
     including, but not limited to the following, which are incorporated herein
     by specific reference:

     (1)  The Equal Employment Opportunity Clause set forth in Section 202,
          paragraphs I through 7, of Executive Order 11246, as amended, relative
          to Equal Employment Opportunity and the implementing Rules and
          Regulations of the Office of Federal Contract Compliance (hereinafter
          referred to as "the OFCCP") relating to equal employment opportunity.

                                                                  Page 16 of 114
<PAGE>

     (2)  The Affirmative Action Clause set forth in Section 60-741.4 of the
          Affirmative Action Regulations on Handicapped Workers, issued by the
          OFCCP pursuant to Section 503 of the Vocational Rehabilitation Act of
          1973, as amended.

     (3)  The Affirmative Action Clause set forth in Section 60-250.4 of the
          regulations issued by the OFCCP under Section 402 of the Vietnam Era
          Veteran's Readjustment Assistance Act of 1974.

     (4)  Public Law 95-507 and Executive Orders 11625 and 12138.

     (5)  The Immigration Reform and Control Act of 1986 and any and all rules
          and regulations pertaining thereto. In compliance with the Act,
          GENUITY requires all approved contracting firms to supply only persons
          authorized to work in the United States pursuant to the Act. GTE shall
          be responsible for complying with the Act with regard to all employees
          supplied to GENUITY.

     (6)  Title I of the Americans with Disabilities Act, 42 U.S.C.A. 12101
          et seq.
          -------

(b)  ADA.  If any persons furnished by either party under the Agreement or any
     ---
     Statement of Work have a disability as defined in the Americans with
     Disabilities Act, 42 U.S.C.A. 12101 et seq. (the ADA), the furnishing party
     shall, where required by Title I of the ADA and at its sole expense,
     provide "reasonable accommodations" that may be required under Title I of
     the ADA.  If GTE performs Services at facilities operated by GENUITY,
     GENUITY shall be responsible, at its sole expense, for any physical changes
     to GENUITY's facility that may be required under the ADA with respect to
     persons utilized by GTE in performing the Services.

(c)  Work Environment.  Both parties agree to provide a work environment free
     ----------------
     from all forms of sexual harassment, including but not limited to, any
     unwelcome sexual advances, requests or demands for sexual favors, and other
     visual, verbal, or physical conduct of a sexual nature.

18.  COMPLIANCE WITH LAWS.

     GTE and GENUITY shall each comply with the provisions of all applicable
     federal, state, and local laws, ordinances, regulations and codes
     (including procurement of required permits or certificates) in
     fulfillment of their obligations under this Agreement. The Confidential
     Information of each party may be subject to U.S. export and foreign
     transactions control regulations. Each

                                                                  Page 17 of 114
<PAGE>

     party undertakes that it will not export, nor cause nor permit to be
     exported, the other party's Confidential Information out of the United
     States of America without such other party's prior written consent and
     without compliance with applicable law and regulation; nor will such
     Confidential Information be made available, directly or indirectly, for
     use in any project associated with the design, development, production,
     testing, stockpiling or use of: (a) nuclear weapons or facilities to
     produce nuclear explosives; or, (b) missiles; or, (c) chemical or
     biological warfare agents. Each party agrees to comply with all
     applicable laws and regulations relating to the exportation of technical
     information, as they currently exist and as they may be amended from time
     to time.

19.  PLANT WORK RULES AND RIGHT OF ACCESS.

(a)  Compliance.  Employees, subcontractors, and agents of the parties, while on
     ----------
     the premises of the other, shall comply with all plant rules, regulations
     and reasonable company standards for security, including (when required by
     U.S. government regulations) submission of satisfactory clearance from U.S.
     Department of Defense and other federal authorities concerned.

(b)  Access.  Each party shall permit reasonable access during normal working
     ------
     hours to its facilities that are used in connection with the performance of
     Services. No charge shall be made for such visits. Reasonable prior notice
     shall be given when access is required.

(c)  Limitation on Access.  If either party is given access, whether on-site or
     --------------------
     through remote facilities, to any computer or electronic data storage
     system of the other party in order to accomplish the Services called for in
     this Agreement, the party that receives such access shall limit such access
     and use solely to perform Services within the scope of this Agreement and
     shall not access or attempt to access any computer system, electronic file,
     software or other electronic services other than those specifically
     required to accomplish the Services required under this Agreement.  Under
     no circumstances shall either party's  personnel access any  networks or
     facilities of the other party for the purpose of accessing other external
     networks, nor shall any such capabilities for such access be published or
     made known via any medium, as for example and not by way of limitation,
     posting on bulletin boards or E-mail.  Any such use or publication shall be
     a material breach of this Agreement.  Neither party shall use back doors,
     data capture routines, games, viruses, worms, or Trojan horses and any
     intentional introduction of such into the other party's data networks shall
     be deemed a material breach of this Agreement.  The party receiving access
     shall limit such access to those of its employees whom the other party has
     authorized in writing to have such access in connection with this Agreement
     or the applicable Statement of Work, and shall strictly follow all security
     rules and procedures for use of

                                                                  Page 18 of 114
<PAGE>

     the providing party's electronic resources. All user identification
     numbers and passwords and any information obtained as a result of access
     to and use of a party's computer and electronic data storage systems
     shall be deemed to be, and shall be treated as, Confidential Information
     under applicable provisions of this Agreement. Each party agrees to
     cooperate with the other in the investigation of any apparent
     unauthorized access to a party's computer or electronic data storage
     systems.

20.  GENUITY RESPONSIBILITIES.

     GENUITY agrees to perform in a timely fashion those tasks, and to provide
     the personnel, facilities and accurate information as agreed by the
     parties and set forth in the applicable Statement of Work. GENUITY
     further agrees to cooperate with GTE in its performance of this
     Agreement, to not unreasonably withhold its consent to any matter for
     which consent is required or requested.

21.  PERMITS.

     Unless otherwise specifically provided for in this Agreement, GTE shall
     obtain and keep in full force and effect, at its expense, any permits,
     licenses, consents, approvals and authorizations ("Permits") necessary
     for and incident to the performance and completion of the Services.
     Notwithstanding the foregoing, GENUITY shall obtain and keep in full
     force and effect, at its expense, any Permits related to its facilities
     and the conduct of its business.

22.  PUBLICITY.

     The parties agree to submit to one another, for prior written approval,
     all advertising, sales promotion, press releases and other publicity
     matters relating to the Services performed pursuant to this Agreement,
     when its respective name or mark is mentioned or language from which the
     connection of said name or mark may be inferred or implied. The parties
     further agree not to publish or use such advertising, sales promotions,
     press releases, or publicity matters without such prior written approval.
     Any approval required under this Section shall not be unreasonably
     withheld or delayed by either party.

23.  TRADEMARKS, TRADENAMES AND OTHER INTELLECTUAL PROPERTY.

     Except as expressly set forth in this Agreement or in a separate written
     agreement between GTE and GENUITY, nothing in this Agreement or any
     Statement of Work shall grant, suggest or imply any right, license or
     authority for one party to use the name, trademarks, service marks, trade
     names or domain names of the other for any purpose whatsoever. Except and
     to the

                                                                  Page 19 of 114
<PAGE>

     extent expressly set forth in this Agreement or in a separate written
     agreement between GTE and GENUITY, nothing in this Agreement or any
     Statement of Work shall be deemed to grant to either party any right or
     license under any intellectual property of the other party.

24.  TERMINATION.

(a)  Termination Events.  Either party may terminate or cancel this Agreement or
     ------------------
     any Statement of Work, effective immediately, upon written notice to the
     other party, if any of the following events occur:

     (1)  The other files a voluntary petition in bankruptcy (other than as
          creditor).

     (2)  The other is adjudged bankrupt.

     (3)  A court assumes jurisdiction of the assets of the other under a
          federal reorganization act.

     (4)  A trustee or receiver is appointed by a court for all or a substantial
          portion of the assets of the other.

     (5)  The other becomes insolvent or suspends its business.

     (6)  The other makes an assignment of its assets for the benefit of its
          creditors except as required in the ordinary course of business.

(b)  Termination for Breach.  Either party may terminate or cancel this
     ----------------------
     Agreement or a Statement of Work, for a material breach or default of any
     of the terms, conditions or covenants of this Agreement by the other,
     provided that such termination or cancellation may be made only following
     the expiration of a thirty (30) day period ("Cure Period") during which the
     breaching party has failed to cure such breach after having been given
     written notice thereof.  In such event, the non-breaching party may
     terminate by giving 10 days written notice of termination, after the
     expiration of the Cure Period.

(c)  Termination for Convenience.  GENUITY may terminate this Agreement or a
     ---------------------------
     Statement of Work during the term of this Agreement or a Statement of Work,
     for convenience on one hundred twenty (120) days prior written notice to
     GTE.  In the event of termination by GENUITY pursuant to this Section,
     prior to the end of the term, GENUITY will reimburse GTE for all GENUITY-
     approved, third party costs for equipment or

                                                                  Page 20 of 114
<PAGE>

     software which have been incurred by GTE after the execution of this
     Agreement as a direct result of GTE's provision of Services under this
     Agreement or any Statement of Work, provided that GENUITY shall be entitled
     to any right, license or title related to any such equipment or software to
     the extent GTE has the ability to convey such right, license or title.

(d)  Termination under Statement of Work.  Statements of Work may be terminated
     -----------------------------------
     as set out under their specific terms, if different from those set out in
     (a), (b) and (c) above.

25.  NOTICE.

     Any written notice either party may give the other concerning the subject
     matter of this Agreement shall be in writing and given or made by means
     that obtain a written acknowledgment of receipt. If the notice pertains
     to a STATEMENT OF WORK performed by any of the following entities notice
     shall be sent to the applicable company addresses shown below, which may
     be changed by written notice:

     To GTE SERVICE CORPORATION:
               1255 Corporate Drive
               Irving, Texas  75038
               Attention:__________

     To GTE DATA SERVICES INCORPORATED:
               One East Telecom Parkway
               Temple Terrace, Florida  33637
               Attention:____________

     To GTE CONSOLIDATED SERVICES INCORPORATED:
               1255 Corporate Drive
               Irving, Texas  75038
               Attention:___________

     To GTE COMMUNICATION SYSTEMS INCORPORATED:
               5616 High Point
               Drive, Irving, Texas  75038
               Attention:_____________

     To GENUITY:
               3 Van de Graaff Drive
               Burlington, Massachusetts  01803
               Attention:_____________

                                                                  Page 21 of 114
<PAGE>

     Notice shall be deemed to have been given or made when actually received,
     as evidenced by written acknowledgment of receipt.

26.  WAIVER OF TERMS AND CONDITIONS.

     Failure to enforce any of the terms or conditions of this Agreement shall
     not constitute a waiver of any such terms or conditions, or of any other
     terms or conditions.

27.  SEVERABILITY.

     Where any provision of this Agreement is declared invalid, illegal, void
     or unenforceable, or any changes or modifications are required by
     regulatory or judicial action, and any such invalid, illegal, void or
     unenforecable provision, or such change or modification, substantially
     affects any material obligation of a party hereto, the remaining
     provisions of this Agreement shall remain in effect and the parties shall
     mutually agree upon a course of action with respect to such invalid
     provision or such change or modification to the end that the purposes of
     this Agreement are carried out.

28.  SURVIVAL OF OBLIGATIONS.

     The provisions in the Agreement relating to Confidentiality,
     Indemnification, Dispute Resolution, Termination, Compensation and
     Billing, Limitation of Liability, and Insurance shall survive any
     termination, cancellation or expiration of this Agreement.

29.  APPLICABLE LAW.

     This Agreement, and the rights and obligations contained in it, shall be
     governed by and construed in accordance with the laws of the State of New
     York, without regard to any conflicts of law principles that would
     require the application of the laws of any other jurisdiction.

30.  NO UNREASONABLE DELAY OR WITHHOLDING.

     Where agreement, approval, acceptance, consent or similar action by
     GENUITY or GTE is required, such action shall not be unreasonably delayed
     or withheld.

                                                                  Page 22 of 114
<PAGE>

31.  ENTIRE AGREEMENT

     This Agreement represents the entire understanding between the parties
     with the respect to its provisions and cancels and supercedes all prior
     agreements or understandings, whether written or oral, with respect to
     the subject matter. This Agreement may only be modified or amended by an
     instrument in writing signed by duly authorized representatives of the
     parties. This Agreement shall be deemed to include all Exhibits, Addenda
     and Statements of Work issued hereunder.

32.  RULES OF INTERPRETATION

     Headings in this Agreement are for convenience of reference only and
     shall not affect the interpretation or construction hereof. Unless
     otherwise specified, (i) the terms "hereof", "herein" and similar terms
     refer to this Agreement as a whole and (ii) references herein to
     "Sections" refer to parts or sections of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement through
their authorized representatives.

Genuity Inc.                          GTE Service Corporation

By:_______________________________    By:__________________________________
Name:_____________________________    Name:________________________________
Title:____________________________    Title:_______________________________
Date:_____________________________    Date:________________________________

                                                                  Page 23 of 114
<PAGE>

                               STATEMENT OF WORK
                               -----------------
                    ACCOUNTING AND CASH PROCESSING SERVICES
                    ---------------------------------------

This Statement of Work is appended to the Transition Services Agreement
("Agreement") dated ______________ by and between Genuity Inc. and GTE Service
Corporation and shall be governed by the terms and conditions thereof.  The
services described herein shall be provided for a period of twelve (12)
consecutive months effective upon the date of execution of the Transition
Services Agreement.

The purpose of this SOW is to provide for the transition of a variety of
accounting related services, since Genuity will not initially have in place the
infrastructure necessary to perform the services.  The services as described in
this SOW relate to accounts payable, payroll, cash processing, and asset
accounting.  Genuity desires to retain GTE to provide these services during a
transitional period while Genuity prepares itself to handle these services
independently of GTE.

Genuity understands and acknowledges that GTE plans to fulfill its obligations
hereunder utilizing the systems ("Systems") set out in the attached Exhibit A to
this Statement of Work, and agrees not to change its systems such that its
systems become incompatible with such Systems as long as this Statement of Work
is effective.

                           ACCOUNTS PAYABLE SERVICES

As requested, and at the discretion of Genuity, GTE will provide the following
Accounts Payable services:

1.  Perform all invoice and expense report processing for Genuity.

    .   Invoices for purchase order related items are mailed directly to
        Accounts Payable Shared Services Center ("AP/SSC") from the vendor.

    .   Expense reports and miscellaneous purchases are input into the system
        by the originator, then approved by the appropriate supervisor/manager
        and mailed to the AP/SSC.

    .   Expense reports are electronically processed, from submission to
        notification.

    .   Genuity electronic files are transmitted by Genuity and uploaded into
        system by accounts payable ("A/P").

2.  Work with Genuity purchasing group as required on issues related to
    payment of purchase order related invoices, including resolution of
    invoices that do not meet existing criteria for payment.

                                                                  Page 24 of 114
<PAGE>

3.  Print and distribute all checks for Genuity vendors nightly.

    .   Maintain appropriate level of security for the equipment and check
        stock.

4.  Perform vendor maintenance function to add new vendors and/or employees to
    the vendor file or change address information as needed. Mail out W-9
    forms to all new vendors to obtain vendor's tax identification.

5.  Prepare 1099 forms at year-end.

6.  Administer field checking accounts for checks written at field locations.

    .   Maintain log of authorized check locations and signature file for each
        account.
    .   Print blank check stock and supplies to check locations when requested.

7.  Perform general ledger account reconciliations and bank reconciliations.

8.  Perform stop payment requests and provide status of checks as requested.
    Deposit vendor checks, refunds, returned checks, and other checks directly
    to the Genuity bank account and perform accounting accordingly.

9.  Establish and maintain recurring payments for leased property and other
    recurring items.

10. Coordinate requirements for bank wire transfer payments in both foreign
    currency and US. Payments in foreign currency are coordinated with
    treasury department, which determines the exchange rate and provides the
    amount back to A/P in US dollars to journalize the transaction.

11. All Genuity vouchers exceeding $150,000 will be reviewed prior to payment
    for compliance with Genuity payment policies and procedures. In addition,
    a post processing sample audit of approximately 8% of employee expense
    reports and 2% of other vouchers will be reviewed for compliance with
    Genuity's policies and procedures.

12. Perform Electronic Funds Transfer ("EFT") for vendors and direct deposit
    for reimbursement of employee expense reports.

13. Retain expense detail data as required by law that supports all required
    tax and regulatory obligations.

14. Provide A/P payment services for international vendors.

    .   Foreign currency payment process
    .   General Ledger Accounting

15. Cash management of payment cycles (i.e. vendor terms and year-end payment
    processing) as determined by Genuity.

16. Process A/P adjustment forms for Prism related data changes.

                                                                  Page 25 of 114
<PAGE>

17.  Provide ad-hoc vendor reporting.

18.  Provide Genuity representatives electronic access to A/P scanned records.

19.  Provide state and use tax accruals set up and processing.

GTE will provide the following metrics to Genuity relating to accounts payable
------------------------------------------------------------------------------
services:
--------

1.  Invoice and expense report volumes.

    .   Provide monthly invoice and expense report volumes within 5 days
        following monthly expense cutoff.

2.  Average days to process invoice and expense reports through the standard and
    PME (procurement, match and error) queues.

    .   Until mechanical tracking is available, approximately 25 Genuity
        invoices/expense reports per week will be sampled to determine the
        average processing time. This information will be provided monthly
        within 5 days following expense cutoff. Mechanical tracking capability
        has been requested, and once functionality is available, will track
        processing time for all invoices and expense reports.

3.  Processing and response times on electronic feeds.

    .   A schedule will be developed (by A/P and system team) that will be
        provided to Genuity each day and a cumulative monthly summary showing
        files sent into The system by Genuity (including the date and timing
        of the transmission) and the date and times these files were actually
        processed into The system. Genuity will be required to notify both A/P
        and system processing each day of the number and kinds of files sent
        to verify that all files sent were actually received. This process is
        planned to be in place by May 1, 2000.

4.  General Ledger account reconciliations shall be prepared monthly by the
    15th day of the second month following month end.  (i.e. by August 15 for
    the month of June.)

Genuity's Responsibilities with respect to Accounts Payable Services:
---------------------------------------------------------------------

Genuity shall provide all information/instructions regarding processing and
payment of invoices and expense reports.

Pricing Structure for Accounts Payable Services:
------------------------------------------------

Genuity shall pay GTE at the rate of $3.05 (three dollars and five cents) per
voucher or expense report for the first 250,000 vouchers and expense reports
processed in the 12-month period following the effective date of this Statement
of Work.  During this 12-month period, vouchers and expense reports exceeding
250,000 and up to 500,000, shall be charged at the rate of $1.80 each (one
dollar and eighty cents).  If the annual volume exceeds 500,000, a revised
charge per voucher shall be negotiated by GTE and Genuity.  If no agreement can
be reached, GTE shall not be required to process vouchers in excess of 500,000
per year.

                                                                  Page 26 of 114
<PAGE>

Changes or requests that necessitate the use of manual efforts instead of
current system processes, or up-front meetings, conference calls, training,
consulting, or other similar services to be billed at the rate of $25.00
(twenty-five dollars) per hour, plus any travel related costs if appropriate.

Any system cost increases attributable to Genuity, imposed by third party
vendors due to systems changes desired by Genuity such as license or user fees,
programming fees or maintenance fees, shall be paid by Genuity.

Programming/system work for new requirements or changes in systems to be billed
separately.

                                PAYROLL SERVICES

As requested, and at the direction of Genuity, GTE will provide the following
payroll services:

1.  Printing and distribution of payroll checks and advices.

2.  Manual checks provided as required.

3.  Calculate payment to employees based on a standard 40/80 hours each pay-
    period.

4.  Process exception time reported (overtime, shift hours and
    differential, on call hours and other work hours). Submission of
    exception information, via the time entry system or by direct feed from
    the Employee Time Reporting ("ETR") system into The system, is the
    responsibility of Genuity. Submission between any other electronic file
    format or means must be previously agreed to by Genuity and GTE.

5.  Process direct deposits.

6.  Process payroll taxes, including Federal, State and Local.

7.  Process employee deductions sent to the payroll center for inclusion in
    employee master file. Any change to existing benefits or third party
    vendors, or not flowing this information through the Quincy Processing
    Center in the same manner as is done as of the date hereof, will
    require programming and processing changes. These deductions include:

    .   Bond deductions
    .   Union dues
    .   Health Clubs
    .   Garnishments, Child support, Bankruptcy, IRS Levy deductions, and
        other such deductions
    .   United Way deductions
    .   Savings and Investment deductions (401K) from Fidelity
    .   FRP Plans - from Hewitt
    .   Insurance deductions - from Hewitt/KVI/MetLife
    .   Other miscellaneous deductions

8.  Process all additional earnings as transmitted to payroll center for
    payment and recording in employee earnings. Any change of outside vendors
    providing this

                                                                  Page 27 of 114
<PAGE>

    information or not transmitting this information through the Quincy
    Processing Center in the same manner as is done as of the date hereof will
    require programming and processing changes. These items include:

    .   Awards
    .   Discretionary Bonus
    .   Incentive Compensation payments
    .   Sales Incentives
    .   Retroactive payments
    .   Choices earnings - from Hewitt
    .   High Housing cost allowances
    .   Cost of Living adjustments
    .   Field Premiums
    .   Site Allowances
    .   Per Diem
    .   Sign on Bonus
    .   Option exercise earnings from Smith Barney
    .   Imputed Income
    .   Tuition aid
    .   Military pay/jury duty
    .   Other, as required

9.  Process Credit Union or Bank additions/changes/deletions.

10. Process any termination pay, including vacation, retirement pay or other
    termination pay.

11. Process vehicle allowance or usage for personal or company owned vehicles.

12. Process tax gross-ups when required.

13. Maintain earnings and deduction codes tables.

14. Payment of employee deductions to appropriate vendors via check request to
    Accounts Payable.  If A/P is not used by Genuity, programming and processing
    changes will be required.

15. Process W-4s submitted by employees to payroll center.

16. Provide all W-2 reporting requirements.

17. Maintain check distribution codes.

18. Reconcile payroll accounts.

19. Transmit journal entry file per established schedule on system web page, to
    Genuity monthly to update its General Ledger.

20. Process employee master file updates into payroll system when received from
    HR system.

                                                                  Page 28 of 114
<PAGE>

21. Continue to provide current system generated payroll reports.  Assist
    Genuity employees in determining RAMIS system report requirements.

22. An employee rate file will be transmitted daily (or as required) back to
    Genuity with adds/changes/deletes of employee rates for use in Genuity
    cost systems.

23. Retain all data as required by law that supports normally required tax and
    regulatory obligations.

24. Transmit journal entry file to Genuity biweekly for 401(k) employee match
    to update Genuity's general ledger.

25. Reconcile all payroll interface and outerface files.

26. Reconcile/provide summary funding report as required for treasury on
    Wednesday of pay-week.

27. Provide appropriate system access to Genuity payroll personnel consistent
    with access as of the date hereof. (Additional access requirements will
    need to be coordinated with, and approved by HR/PR and system security.)

28. Provide unemployment services with Gates MacDonald and keep rates updated
    in payroll system. (A vendor change will require programming and process
    changes.)

29. Provide employment verification and mortgage verification via TALX system.
    (Assumes Genuity contracts with TALX for this service. Changing the vendor
    will require programming and processing changes.)

GTE will provide the following metrics to Genuity with respect to payroll
services:

1.  Number of employees supported - based on average number of employees per pay
    period each month in a format to be mutually agreed upon by the parties.

2.  Number of manual checks each month to Genuity employees
    .   Number of checks
    .   Reason for manual checks (i.e. legal requirements, payroll error, time
        release issue, other reasons.)

3.   General Ledger account reconciliations prepared monthly by the 15th day of
     the second month following month end.  (i.e. by August 15 for the month of
     June)

Genuity's Responsibilities with respect to Payroll Services
-----------------------------------------------------------

Genuity is responsible for providing all information and data required for GTE
to perform its duties hereunder including, but not limited to, all employee
information, changes, pay information and other information through The human
resource systems (including benefit providers).

                                                                  Page 29 of 114
<PAGE>

Pricing Structure with respect to Payroll Services
--------------------------------------------------

Genuity shall pay GTE at a rate of $10.72 (ten dollars and seventy-two cents)
per employee supported per month.  All manual checks that are not the result of
legal requirements or payroll error are to be billed at the rate of $20.00
(twenty dollars) per check for the first 50 manual checks each month, $25.00
(twenty-five dollars) per check for the next 100 manual checks each month, and
$30.00 (thirty dollars) per check for all manual checks for the month exceeding
150, plus shipping and handling.

Changes or requests that necessitate the use of manual efforts instead of system
processes in effect as of the date hereof, or up-front meetings, conference
calls, testing, training or consulting to be billed at the rate of $25.00
(twenty-five dollars) per hour, plus any travel related costs if appropriate.

Any system cost increases attributable to Genuity, imposed by third party
vendors due to systems changes desired by Genuity such as license or user fees,
programming fees or maintenance fees, shall be paid by Genuity.

Programming/system work for new requirements or changes in systems to be billed
separately.

                            CASH PROCESSING SERVICES

As requested, and at the direction and under the policies developed and provided
by Genuity, GTE will provide the following administrative cash processing
services:

1.  Funding and Liquidity:

    .   Support and assist with bank selection process and negotiation of
        terms and conditions of bank facilities.

2.  Daily Cash Processing:

    .   Electronically poll banks to obtain balance and transaction data and
        report same to Genuity
    .   Concentrate cash flows from all sources pursuant to Genuity's
        instructions
    .   Transmit payment of all obligations via wire, ACH, EDI (including
        funding payroll and accounts payable) authorized by Genuity
    .   Administer short-term borrowing/investing activities pursuant to
        Genuity's policies and directions
    .   Provide efficient treasury management workstation which integrates and
        facilitates daily cash management and related accounting
        services/activities
    .   Provide cash activity research, as requested
    .   Provide supporting information and documentation to Genuity

3.  Cash Accounting and Reporting:

    .   Balance, journalize and upload:
        .   Receipts, disbursement transactions
        .   Temporary cash investments
        .   Short-term debt transactions

                                                                  Page 30 of 114
<PAGE>

        .   Long-term debt transactions
        .   Accruals, as necessary, related to the above
    .   Provide supporting information and documentation to Genuity
    .   Process transactions and maintain/provide documentation for payable
        and receivable transactions between and among Genuity subsidiaries and
        affiliated companies

4.  Bank Account Maintenance and Administration

    .   Provide routine bank account maintenance pursuant to Genuity banking
        resolutions, policies and direction:
        .   Open/close accounts
        .   Maintain accurate authorized signatory records and resolutions
        .   Ensure Genuity-directed internal controls are carried out
        .   Monitor efficiency of bank account structure and recommend changes
            for Genuity consideration, as needed

5.  Foreign Currency Exchange Transactions

    .   Maintain mechanized system for spot transactions under $250,000
    .   Execute foreign exchange, futures, and options transactions
    .   Prepare foreign exchange drafts and initiate wires

6.  International Project Finance

    .   Consult/advise on alternative sources of financing (OPIC, Exim, World
        Bank, and others)
    .   Provide support and assistance in executing international financing
        strategies

Genuity Responsibilities with respect to Cash Processing Services
-----------------------------------------------------------------

Genuity shall be responsible for providing instructions, policies, guidelines,
and board resolutions where applicable, and for selecting and maintaining
banking relationships such that GTE can perform its duties hereunder.

Pricing Structure with respect to Cash Processing Services
----------------------------------------------------------

Genuity shall pay GTE a one-time initial set-up fee of $11,000 (eleven thousand
dollars).

Genuity shall pay GTE an annual fee of $265,000 (two hundred sixty-five thousand
dollars) payable in monthly installments in arrears, for provision of the Cash
Processing Services described above in items 1-5 for the 12 month period
following the effective date of this Statement of Work.

Genuity shall pay any and all bank fees incurred by GTE on behalf of Genuity in
the course of delivering Services under this Statement of Work.

Genuity shall pay the following hourly rate for any Cash Processing Services
outside the scope of items 1-6 described above, including but not limited to
consulting or vendor transition services provided in the event Genuity elects to
utilize an alternative vendor at a later time: $65.00 (sixty-five dollars) per
hour.

                                                                  Page 31 of 114
<PAGE>

Genuity shall pay the following hourly rate for Services under 6 above
(International Project Finance): $100.00 (one hundred dollars) per hour.

Any system cost increases attributable to Genuity, imposed by third party
vendors due to systems changes desired by Genuity such as license or user fees,
programming fees or maintenance fees, shall be paid by Genuity.

                           ASSET ACCOUNTING SERVICES

GTE will provide the following asset accounting services for Genuity through its
--------------------------------------------------------------------------------
Fixed Asset Shared Service Center:
----------------------------------

Processes
---------

1.  Create asset detail records (monthly settlement procedures)
    .   Account for (settle) labor, material and overhead costs in accordance
        with settlement rules created by Genuity.
    .   Account for (settle) final assets, via manual or mechanical process
        for labor and materials costs, from internal orders and work breakdown
        structures ("WBS's") - Triggering of the settlement process will based
        upon one of the following:
        .  Technical close of an internal order ("IO") or WBS by Genuity
        .  Settlement rules established by Genuity
        .  Review of monthly "blanket" IO's and WBS's as identified by Genuity
        .  Receipt of summary information via TIMS system
        .  Receipt of notification of acceptance of Qwest Fiber segment
    .   Account for (settle) capital dollars relating to assets under
        construction during the month end close as directed by Genuity.

2.  Process transfers between locations, cost centers, and intra-legal entity
    company codes based upon input through the plant maintenance module and
    manual forms submitted by Genuity. Maintain documentation demonstrating
    support for the transfer of assets to Genuity defined standards.

3.  Calculate interest during construction amounts based upon Genuity policies
    and procedures, and place amounts into service based upon Genuity
    notification, or other established process.

4.  Process affiliate transfers (between Genuity legal entities) based upon
    information from Genuity. Maintain documentation demonstrating support for
    the transfer of assets to Genuity defined standards.

5.  Process retirements of assets based upon information supplied by Genuity.
    Maintain documentation supporting the retirement of assets to Genuity
    defined standards.

6.  Record proceeds from the sale of assets, based upon cash receipts
    information booked by Genuity.

                                                                  Page 32 of 114
<PAGE>

7.  Generate depreciation expense monthly according to the Genuity established
    calendar, including:
    .   Running system depreciation program
    .   Addressing any errors and posting to the general ledger
    .   Reconciling and resolving any sub-ledger to general ledger discrepancies

8.  Perform year-end rollover processes.

Data Maintenance
----------------

1.  Maintain and update location code information as required by Genuity.

2.  Maintain adequate data to support internal and external audit requests
    along with tax and insurance requirements, in accordance with Genuity
    policies and procedures.

Reporting
---------

1.  Ensure access to monthly activity reports including asset history sheets
    with acquisition, transfer, retirement and depreciation information.

2.  Ensure access to month end asset detail positions.

3.  Support ad-hoc reporting requests from Genuity.

4.  Provide required reporting for year-end tax processes plus required property
    tax and insurance reporting, as defined by the Genuity tax and insurance
    groups.

5.  Provide reconciliations of all asset accounting tracked accounts and
    procedures (i.e., interest during construction) monthly by the 15th of the
    month.

Ad-hoc Services
---------------

1.  Maintain lease term schedule for leasehold information based upon
    information from the facilities group.

2.  Support capital lease related requirements for tracking and reporting.

3.  Support revaluations of assets and other like special projects as required
    by Genuity.

4.  Supply supporting documentation as maintained.

5.  Work with the system development team to implement any Genuity or GTE
    desired upgrades or enhancements involving the system fixed asset module.

6.  Support audit requests (including interface with other shared service
    centers ("SSC's") for external and internal audit groups, including system
    and process reviews, and sample detail testing in accordance with pre-
    defined schedules.

                                                                  Page 33 of 114
<PAGE>

Service Level Standards
-----------------------

1.  All assets under construction ("AUC") amounts that are triggered (under
    Processes-first section above) for transfer to final assets by the 15th of
    the month are expected to be depreciable assets for the given month end
    close. Any items not processed are to be reported through a backlog
    tracking process.

2.  Asset records will be created to the level of detail procedurally defined by
    Genuity.

3.  Transfers, retirements, sales and affiliate transactions are transmitted
    to the SSC by the 15th of the month and are expected to be booked prior to
    the given month end close.

4.  Location database updates will be provided on a 24-hour turnaround.

5.  A depreciation roll-forward is expected for each month by the 3rd business
    day after the posting of depreciation. This roll-forward should document
    the change in depreciation by company code broken out by the impact of
    additions, fully depreciated assets, and retirements.

6.  Support document retrieval for records on transfers, affiliate sales, and
    retirements will be provided on a 48-hour turn-around basis.

Pricing Structure with respect to Asset Accounting Services:
------------------------------------------------------------

Genuity shall pay GTE a monthly fee of $42,000 for the Services described
herein.

Changes or requests that necessitate the use of manual efforts instead of
current system processes, or up-front meetings, conference calls, training,
consulting, or other similar services to be billed at the rate of $25.00
(twenty-five dollars) per hour, plus any travel related costs if appropriate.

Any system cost increases attributable to Genuity, imposed by third party
vendors due to systems changes desired by Genuity such as license or user fees,
programming fees or maintenance fees, shall be paid by Genuity.

GTE SERVICE CORPORATION                 GENUITY INC.

By:____________________________         By:___________________________

Title:_________________________         Title:________________________

Date:__________________________         Date:_________________________

                                                                  Page 34 of 114
<PAGE>

Exhibit A

[ICON APPEARS HERE]

Note:  The sheets included in the Excel worksheet file referenced above are
attached to this document immediately following this page.

                                                                  Page 35 of 114
<PAGE>

                                   Exhibit A
              Accounting and Cash Processing Statement of Work

 Systems/Software Required to Serve Internetworking-Accounts Payable Services
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
System Name                   Function
------------------------      --------------------------------------------------
<S>                           <C>
AP ONE                        Used by Internetworking to enter employee
                              expense reports and check requisitions.  Payment
                              data is entered into AP ONE.  The printed
                              documents are sent to San Agnelo where they are
                              scanned.  The AP ONE system sends a nightly file
                              to SAP A/P to journalize

AP Movers (subsystem          System that takes all incoming files (EDI, AP
of VISION)                    ONE, and other internal interfaces) and edits
                              and formats the records for mechanical entry
                              into SAP A/P.

TSI (Mercator)                Contains the mapping information to correctly
Trading Partner EC            format EDI invoices from external vendors so
                              those invoices can be processed into SAP.  Also
                              used in formatting outbound payment files back
                              to vendors.

Mercator                      Also used to facilitate processing of EDI
                              invoices into SAP and EFT payments out of SAP to
                              various external vendors.

CONNECT: Mailbox              Used to "mail" EFT payments to various vendors.

SAP A/P                       Used to process A/P activity for
                              Internetworking, including vendor set-up,
                              processing of manual invoices, processing of
                              electronic invoices, outerfaces back to various
                              Internetworking systems, check printing and
                              electronic payments.
</TABLE>

                                                                  Page 36 of 114
<PAGE>

      Systems/Software Required to Serve Internetworking-Payroll Services
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
System Name                   Function
------------------------      --------------------------------------------------
<S>                           <C>
Fleet Bank's On-Line          Used to perform maintenance on ACH records
Maintenance System            before they are released, used to obtain check
                              impages of payroll checks, used for stop
                              payments, voids, etc.  It is also used by Recons
                              for their bank reconciliation.

Fleet Bank's                  A program whereby NewCo receives its ACH return
Treasury Express              items so it can initiate action in payroll for a
System                        replacement check.

Fed-Ex On-Line                Used for all mailings done on a daily basis.
Powership System and
Airborne Express
On-Line System

Thomson Financial             This is a CD-ROM based Windows System which
ABA Reference Guides          provides a monthly ABA# database used for
                              reference purposes in Banking.  In addition
                              Thomson provides a quarterly flat file used by
                              SAP to verify ABA#'s entered into the system
                              through the IVR and on-line info-

FLS Tax Reporting             Used for all tax reporting and year-end tax
System                        processing.

Hessel                        System used to process relocation for employees.

SAP HR/Payroll                System used to process HR and Payroll
                              transactions for bi-weekly payroll runs.

SAP/AP                        System payroll interfaces with to send third
                              party remittances for employee deductions and
                              withholding to be sent to various vendors and
                              taxing authorities.

RDM                           System used to generate bi-weekly base time and
                              to report exception time for the pay period.

ETR                           System used by employees to report their time in
                              on a daily basis.

FFE                           Front end system used to pass the time fed from
                              RDM through to SAP Payroll.

IVR                           Interactive Voice Response System used by
                              employees to update various deductions and
                              withholdings on their masterfile record.
</TABLE>

                                                                  Page 37 of 114
<PAGE>

      Systems/Software Required to Serve Internetworking-Cash Management
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
System Name                   Function
------------------------      --------------------------------------------------
<S>                           <C>
Treasury Management           Control and management of all aspects of cash
Workstation                   management, including daily cash positioning,
                              cash journalization and reporting, investments,
                              long-term debt tracking and reporting, ST debt
                              tracking, etc.

Pinnacle Tax System           Banking system utilized to effect EFTPS and
                              state tax payments

Bank Data Retrieval           Bank polling system - internally developed
                              (CrossTalk)

WANDA FX System               Banking system utilized to effect foreign
                              exchange transactions

Electronic Account            System to assist in management and tracking of
Analysis System               bank fees

Bank Fee Allocation           System to allocate consolidated bank invoices
System                        (FoxPro)

Intranet Web Site             Intranet utilized to disseminate cash and
                              accounting information and reports to end users
                              -- Internetworking would need access via
                              Intranet or Virtual Private Network

MicroTrade                    Facilitate preparation of letters of credit

Bank Account                  Facilitate management of bank account
Signatory System              signatories and opening/closing of bank accounts
                              (FoxPro)

Banking Transaction           Banking wire and concentration system utilized
System                        to effect wire/ACH transfers as well as
                              concentrate funds

Banking Transaction           Banking system utilized to effect payroll via
System                        check and ACH (includes payroll imaging and
                              positive pay functionality)

Banking Transaction           Banking system utilized to effect accounts
System                        payable checks
</TABLE>

                                                                  Page 38 of 114
<PAGE>

  Systems/Software Required to Serve Internetworking-Asset Accounting Services
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
System Name
-----------------------
<S>                           <C>
SAP

</TABLE>

                                                                  Page 39 of 114
<PAGE>

                               STATEMENT OF WORK
                               -----------------

                            HUMAN RESOURCES SERVICES
                            ------------------------

This Statement of Work ("SOW") is appended to the agreement dated ____________,
2000, by and between Genuity Inc. ("Genuity") and GTE Service Corporation
("GTE") and shall be governed by the terms and conditions thereof.  The services
described herein shall be provided by GTE to Genuity for a period of three
months beginning on the date of the agreement.

SUMMARY:

GTE administers human resources matters in an efficient and centralized manner
and wishes to make this administrative expertise available to Genuity so that
employees experience an orderly transition from GTE to Genuity.  Similarly,
Genuity wishes to retain access to certain aspects of GTE's human resources
administrative expertise until such time as Genuity can develop its own
expertise in this area.  Accordingly, GTE and Genuity are entering into this
SOW, which will govern the parties' relationship with respect to various human
resources matters, including employee benefits services, general human resources
administrative services, employee data warehousing, development of a company
intranet, health and welfare benefits funding matters, and development of a
benefits delivery system.  By its terms, this SOW will govern the parties
relationship in this regard for a period of three months from the date of the
agreement between GTE and Genuity.  However, it is anticipated that this SOW
will be extended through December 31, 2000.

EMPLOYEE BENEFITS SERVICES:

For the purposes of this document, "Employee Benefits Plans" is comprised of,
and limited to the following: CHOICES health, dental, disability, FRP, HMO,
DHMO, Life Insurance, AD&D, prescription, vision, adoption assistance, personal
lines of insurance, survivor support programs and long term care.

1.  Provide vendor management assistance to Genuity on an as needed basis.

    .  Act as liaison between Genuity and its various employee benefit plan
       vendors.

    .  Monitor non-ERISA claims made to vendors under health and welfare benefit
       plans.

    .  Monitor vendor performance.

                                                                  Page 40 of 114
<PAGE>

2.  Provide assistance to Genuity on an as needed basis in performing various
    administrative functions under employee benefit plans.

    .  Consult with Genuity on administrative interpretations of employee
       benefit plan provisions.

    .  Provide Genuity with information regarding historical practices with
       regard to employee benefit plan administration.

    .  Assist Genuity in developing administrative practices for its employee
       benefit plans.

    .  Oversee annual enrollment processes and other administrative
       responsibilities for Genuity employee benefit plans.

Note:  The above benefits-related information is not accessible via a GTE web
                                                 ---
site.

Genuity's Responsibilities with respect to Employee Benefits Services
---------------------------------------------------------------------

Genuity understands and agrees that any involvement by GTE with Genuity's
employee benefit plans will be in an advisory or consultative capacity and not
                                                                           ---
in a fiduciary capacity.  This includes, but is not limited to the Claims and
Appeals processes.  As between GTE and Genuity, all fiduciary responsibility and
accountability remains at all times with Genuity.

Genuity will act as the point of contact with all vendors for any matter
relating to fiduciary and plan design issues, with GTE acting merely in an
advisory or consultative capacity.  GTE will act as the point of contact with
all vendors for all other issues.

Genuity shall provide all information/instruction regarding its employees,
employee benefit plans, and vendors as GTE may require to fulfill its
obligations.

Genuity agrees to provide a quarterly report of all former GTE employees that
terminate or retire from Genuity.  This information should be provided to the
Director, Executive Compensation Administration and Director, Benefits
Administration.  This information will be used to ensure these employees receive
any appropriate GTE benefits as a result of their prior GTE service.

Pricing Structure for Employees Benefits Services
-------------------------------------------------

GTE COSTS:

Genuity shall pay GTE at a rate of $5,400 per month, plus any travel expenses
incurred.

Programming or system work for any employee benefits administrative services to
be billed separately at a rate to be mutually agreed upon.

                                                                  Page 41 of 114
<PAGE>

Genuity will pay GTE actual costs incurred resulting from any GTE system
modifications for Genuity-specific administrative or plan design changes.

EXTERNAL VENDOR COSTS:

Genuity will pay GTE's costs for any increased vendor charges (directly to the
vendor, unless otherwise specified) associated with Genuity-specific
administrative or plan design changes.  Additionally, Genuity will be invoiced
separately for regular, ongoing administrative services provided by vendor, for
the exclusive benefit of Genuity.

OTHER HUMAN RESOURCES ADMINISTRATIVE SERVICES

1.  Provide assistance to Genuity on an as needed basis in accomplishing various
    other administrative human resources services including:

    .  Training Administration: training registration and scheduling, shipment
       of training materials and other miscellaneous support for Genuity
       employees on an as-needed basis;

    .  Educational Assistance Administration;

    .  Employment Verification: To include employment verification via external
       vendor (TALX).  Requests for employment verification outside of vendor
       capabilities will be directed to Genuity;

    .  Relocation Services Administration;

    .  International Human Resources Administration;

    .  Provide vendor management assistance to Genuity on an as needed basis
       for the above services;

    .  GTE will monitor vendor performance and act as an intermediary between
       Genuity and the various vendors who provide the services listed above;
       and

    .  Although no other specific services will be provided by GTE in the areas
       of Employee Services Operations or Support, other than those specifically
       described herein, it is anticipated that some amount of transition
       support, as well various technical support will be required by Genuity on
       an as needed basis.

                                                                  Page 42 of 114
<PAGE>

Pricing Structure:
-----------------

Genuity will pay actual vendor costs incurred for the delivery of these services
and will pay GTE's costs for any increased vendor charges (directly to the
vendor, unless otherwise specified) associated with Genuity-specific
administrative or plan design changes.

For Training Administration Services, Genuity shall pay GTE at a rate of $25.00
per hour, plus any travel expenses incurred, to be invoiced monthly.

For Employee Services Operations/Support transitional and/or technical support,
Genuity shall pay GTE at a rate of $40.00 per hour, plus any travel expenses
incurred, to be invoiced monthly.

Programming or system work for any administrative services to be billed
separately at a rate to be mutually agreed upon.

Genuity will be billed separately for actual costs incurred by GTE for any GTE
system modifications for Genuity-specific administrative or program design
changes.

                                                                  Page 43 of 114
<PAGE>

2.  Provide support in the area of Workforce Development, specifically related
    to providing non-strategic course development and delivery on an as-needed
    basis

Pricing Structure:
-----------------

Genuity shall pay GTE the following rates on an as needed basis:

Programming or system work for any administrative services to be billed
separately at a rate to be mutually agreed upon.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
                                                                            Price
                                                                         Per Student
                                                                            Hour
-------------------------------------------------------------------------------------
<S>                                                                      <C>
Sales & Marketing Delivery                                                  $     40
MMDP (Marketing Mgmt Development Program) Delivery                          $     46

Technical Delivery                                                          $     15

IT Training                                                                 $     37

Management Delivery                                                         $     30
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Curriculum Maint. & Development ($/curriculum developer hour)               $     85
( Represents average cost and is subject to adjustment based on project)
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Alternative Delivery License Fees                                        Annual Cost
                                                     SkillSoft              $ 71,625
                                         NETg/Smartforce/Other              $262,259
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Leadership Development                                                   Per Session
-------------------------------------------------------------------------------------
                                       LDW LD Workshop (1 day)              $ 14,888
                                LDM LD for Management (3 days)              $ 56,107
         LDC LD for Coaches & Individual Contributors (2 days)              $ 20,523
                         LDS LD for Senior Executives (2 days)              $ 50,512
-------------------------------------------------------------------------------------
</TABLE>

Genuity will be billed separately for actual costs incurred by GTE for any GTE
system modifications for Genuity-specific administrative or program design
changes or software changes.

3.    Employee Opinion Survey (Viewpoints)

      .  Conduct Employee Opinion Surveys on behalf of Genuity utilizing current
         process and program.

      .  Genuity will be administered as part of the main Viewpoints study.

                                                                  Page 44 of 114
<PAGE>

      .  Includes monthly distribution and reporting (approximately 300 per
         month, 3,600 annually)

Pricing Structure:
-----------------

Genuity shall pay GTE as follows:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                              DUE                             COST
-------------------------------------------------------------------------------------------------------
<S>                             <C>                              <C>
Initial set-up costs                          One Time                        $1,000
including questionnaire and
Internet  Survey revisions
-------------------------------------------------------------------------------------------------------
Basic Study Costs                             Monthly                         $1,200
-------------------------------------------------------------------------------------------------------
Printing, paper,                              Monthly                         $  150
communication, promotion
-------------------------------------------------------------------------------------------------------
TOTAL                                                                         One Time: $1,000
                                                                              Ongoing/monthly: $1,350
-------------------------------------------------------------------------------------------------------
</TABLE>

Programming or system work for any employee opinion survey services to be billed
separately at a rate to be mutually agreed upon.

Genuity will be billed separately for actual costs incurred by GTE for any GTE
system modifications for Genuity-specific administrative or program design
changes or software changes.

Genuity's Responsibilities with respect to Other Human Resources Administrative
-------------------------------------------------------------------------------
Services
--------

Genuity understands and agrees that any involvement by GTE with Genuity's  other
Human Resources Administrative Services will be in an advisory or consultative
capacity and not in a fiduciary capacity.  As between GTE and Genuity, all
             ---
fiduciary responsibility and accountability remains at all times with Genuity.

Genuity will act as the point of contact with all vendors for any matter
relating to fiduciary and plan design issues, with GTE acting merely in an
advisory or consultative capacity.  GTE will act as the point of contact with
all vendors for all other issues.

EMPLOYEE DATA WAREHOUSE DEVELOPMENT AND SUPPORT:

1.  Develop Employee Data Warehouse logical view for Genuity Employees.

    .  Data will be a subset of GTE Employee Data Warehouse data elements

    .  Data will initially consist of SAP current and chronological history only

                                                                  Page 45 of 114
<PAGE>

    .  The data will be a direct extract from source systems and will have
       minimal cleanup

    .  Connectivity via ODBC will be provided to Genuity who will be responsible
       for their own reporting tools

2.  Maintain Employee Data Warehouse View for Genuity and provide Help Desk
    support on an as needed basis.

    .  Provide regular feeds to Genuity Employee Data Warehouse View from SAP

    .  Make minor changes to view data elements and structure

    .  Maintain security profiles and provide access to the Employee Data
       Warehouse

    .  Provide first level help desk support for questions on connectivity

    .  Provide option to Genuity to incorporate new data elements and
       functionality in their Employee Data Warehouse view if and when they do
       become available in the GTE Employee Data Warehouse. The cost will be
       negotiated separately.

    .  Cost does not include training which will be negotiated separately.

                                                                  Page 46 of 114
<PAGE>

Pricing Structure for Employee Data Warehouse Development and Support:
---------------------------------------------------------------------

The pricing quoted below takes into account the work involved in providing the
following services:

Development

Obtain and map required data elements
Create logical data view
Provide load balancing
Test logical data view
User Acceptance Testing (UAT)
Assign security profiles and give users access to view
Provide ODBC connectivity

Annual Support

First level help desk for questions on connectivity
Periodic refresh of view (Periodicity TBD)
Backup and Recovery support
Add new authorized user to view
Add new security profiles

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
                  Item                           Cost Category                    Total Price
----------------------------------------------------------------------------------------------
<S>                                        <C>                        <C>

 .  Annual Support Costs ($3,383/month)     RECURRING
                                           (ANNUAL)                                    $40,590
----------------------------------------------------------------------------------------------

 .  Development
                                           ONE TIME                                    $16,667
----------------------------------------------------------------------------------------------

 .  Total Price - first year                                                            $57,257
----------------------------------------------------------------------------------------------
</TABLE>

Genuity will pay an additional amount to be negotiated separately if it needs
any data element not in the current GTE Employee Data Warehouse or additional
functionality not outlined in the current document.

HR.GTE.COM:

For the purposes of this document, "HR.GTE.COM" is comprised of, and limited to
the following:  Intranet Website shell with design, navigation, and Icons, for
page levels zero and one.

                                                                  Page 47 of 114
<PAGE>

Assumptions:
1.  No outerface links will be provided under this SOW.
2.  No specific content will be included under this SOW.   Note:  All hr.gte.com
    content is deemed to be GTE proprietary and will not be covered by this SOW.
3.  This SOW includes a one -time copy of existing homepage and level one page
    structures only.
4.  Education & Training and Career Development and Training (CDAT) content and
    functionality are not covered under this SOW.  This can be explored with and
    provided by Jim Roach.
5.  No other specific services will be provided by GTE in the areas of
    HR.GTE.COM Operations or Support.

Pricing Structure for HR.GTE.COM:
--------------------------------

GTE Prices:  All prices associated with this SOW are based on the number of
hours to create and deliver a shell version of hr.gte.com.

Pricing Structure:  Genuity shall pay the following one-time costs:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                  Item                          Cost Category              Total Price
---------------------------------------------------------------------------------------------
<S>                                        <C>                       <C>
 .  Initial Setup Level Zero through One
   pages of hr.gte.com production site
 .  Place shell on separate environment     ONE TIME                                    $2,837
   and quality assure product
 .  Package product for shipment
---------------------------------------------------------------------------------------------

 .  Total Price                                                                         $2,837
---------------------------------------------------------------------------------------------
</TABLE>

HEALTH & WELFARE FUNDING SERVICES:

1.  Provide administrative support to Genuity for employee Benefit Finance
    Information System (BFIS).

    .  Input continually updated enrollment information into BFIS.

    .  Calculate monthly premiums to be paid to trust/custodial account.

    .  Calculate amounts paid by trust/custodial account to vendors.

    .  Monitor claims paid by custodial account to self-insured vendors and
       report activity to Genuity.

    .  Advise self-insured vendors of administrative expense amounts generated
       by the self-bill process.

                                                                  Page 48 of 114
<PAGE>

    .  Maintain BFIS internal tables consistent with Genuity plan design.

    .  Provide management reports to maintain health care plan performance.

    .  Provide report of year-end claims outstanding.

2.  Provide assistance to Genuity in vendor management and procurement.

    .  Provide additional review of performance reports and recommend
       alternative corrective actions.

    .  Negotiate proposals on behalf of Genuity for national self-insured
       contracts (to provide Genuity with the benefit of volume pricing under
       GTE's umbrella).

3.  Provide administrative support to Genuity with regard to its health and
    welfare trust or custodial account.

    .  Calculate monthly payments to and from trust/custodian.

    .  Execute payments from trust/custodian.

    .  Reconcile trust activity between Genuity and the trustee/custodian.

4.  Provide Genuity with benefit accounting guidance, cost analysis, and funding
    strategies.

    .  Estimate annual cost and funding based on plan design and past experience
       (to be used for budget and strategic plan projections).

    .  Estimate annual cash commitments.

5.  Provide Genuity with financial analysis for employee benefit plan financial
    analysis.

    .  Provide historical data from BFIS database to support benefit plan
       financial analysis.

6.  Oversee the completion of annual governmental reporting obligations.

    .  Prepare Form 5500 (Annual Report) for all ERISA-governed employee benefit
       plans required to file Form 5500 each year.

    .  Prepare Summary Annual Reports (SARs) as required.

    .  Prepare Form 990 as required.

                                                                  Page 49 of 114
<PAGE>

Genuity's Responsibilities with respect to Health & Welfare Funding Services
----------------------------------------------------------------------------

Genuity understands and agrees that any involvement by GTE with Genuity's
employee benefit plans will be in an advisory or consultative capacity and not
                                                                           ---
in a fiduciary capacity.  As between GTE and Genuity, all fiduciary
responsibility and accountability remains at all times with Genuity.

Genuity shall provide all information/instruction regarding its employees,
employee benefit plans, and vendors as GTE may require to fulfill its
obligations.

Genuity understands and agrees that any proposed changes to plan design or
vendor choice must be compatible with BFIS.

Pricing Structure for Health & Welfare Funding Services
-------------------------------------------------------

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
                  Item                          Cost Category                 Amount
----------------------------------------------------------------------------------------------
<S>                                        <C>                       <C>
 .  Health & Welfare Benefits Funding       RECURRING
    Annual Charge                                                                      $40,500
----------------------------------------------------------------------------------------------
 .  Initial Set Up Costs to Establish
    Genuity as a Separate Entity            ONE TIME                                   $20,500
----------------------------------------------------------------------------------------------
 .  Total                                                                              $61,000
----------------------------------------------------------------------------------------------
</TABLE>

Genuity will pay an additional amount to be negotiated separately if GTE cannot
use BFIS to complete its obligations or if any third parties do not continue to
perform their current duties or if additional vendor charges (e.g., software
usage) are imposed upon GTE.

QUINCY PROCESSING CENTER - BENEFITS DELIVERY SYSTEM

For the purposes of this SOW, Benefits Delivery System represents the system
that interfaces with the GTE Payroll systems and the benefit plan vendors as
listed below.

                                                                  Page 50 of 114
<PAGE>

SERVICES
---------

1.  Reconcile and control interfaces from GTE SAP Payroll system.

2.  Authorize funds transfers to benefit vendors.

3.  Edit and post data to the Benefits Delivery System Data Base.

4.  Process manual payments and adjustments.

5.  Create outerfaces to vendors based on their specific data requirements, file
    formats, and timing requirements.

       Fidelity Investments
       KVI
       MetLife
       Smith Barney
       Federal  & State Political Action Committee (PAC)
       Hewitt Associates
       AYCO
       TALX
       CORE
       Cendant
       Arthur Andersen
       Edcor
       Other vendors to be mutually agreed upon

6.  Receive and process interface from vendors to GTE Payrolls.

ASSUMPTIONS
-----------

 .  There will be no physical separation of data on the QPC Benefits Delivery
   System (BDS).
 .  Assume no vendor changes.
 .  Assume that Flexible Benefit dollars (GUL, PLP/LTC, FRP, PAC) for Genuity can
   be co-mingled with GTE Flex Ben $ on one interface to the vendors. If a
   separate interface is required to vendors for Genuity information and
   dollars, then a new development SOW would be required.
 .  Assume a separate reconciliation for Genuity.
 .  Assume that the QPC may potentially submit subsequent SOWs as details of the
   Genuity benefits become more defined. At that time, we will evaluate what
   additional time and costs will be necessary in order to provide the agreed
   upon services.

                                                                  Page 51 of 114
<PAGE>

Pricing:
--------

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                  Item                          Cost Category              Total Price
---------------------------------------------------------------------------------------------
<S>                                        <C>                       <C>
 .  Benefit Delivery System Operations
   ($88,883/month)                         RECURRING                               $1,066,594

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

 .  Total Price (Annual)                                                            $1,066,594
---------------------------------------------------------------------------------------------
</TABLE>

QUINCY PROCESSING CENTER:  PENSTAR INTERFACE SYSTEM (interface to GTE's
pension calculation system at hewitt)

SERVICES:

None

ASSUMPTIONS
-----------

The QPC will not track hours and earnings for the Genuity employees.
Hewitt will flag the employees that are due future GTE Pensions.

COSTS
-----

None

QUINCY PROCESSING CENTER - PENSION PAYROLL SYSTEM:

Services
--------

None

ASSUMPTIONS
-----------

No retirees transfer to Genuity and there are no new retirees.

COSTS
-----

None

                                                                  Page 52 of 114
<PAGE>

GENERAL ASSUMPTIONS

General SOW Assumptions/Provisions for Employee Data Warehouse Development and
Support, HR.GTE.COM, Quincy Processing Center--Benefits Delivery System,  Quincy
Processing Center:  Penstar Interface System (Interface To Gte's Pension
Calculation System At Hewitt), and Quincy Processing Center--Pension Payroll
System:

1.  The HR/Payroll tasks are outlined in several SOWs. HR Technology and
    Information Services tasks in support of non-SAP systems are outlined within
    this SOW. HR Technology and Information Services tasks in support of the SAP
    System are covered under the SAP SOW. Payroll Service Center (PSC) tasks are
    outlined in Finance Functional SOW.

2.  The HR SOWs assume that all services performed for Genuity will continue in
    a similar manner as performed today unless otherwise noted. Only those tasks
    outlined within this SOW shall be performed. Any tasks not outlined within
    this SOW would require a contractual direction from the GTE Account Manager.

3.  (GTE Account Manager) is the Genuity point of contact for all contractual
    matters related to this SOW. Any requests for any changes to tasks or new
    functionality should be forwarded in writing to (GTE Account Manager).

4.  The estimates outlined in this SOW assume support for 3,800 Genuity
    employees. If this number increases, the resources assigned to support
    Genuity would need to be reassessed.

5.  It is expected that there will be several changes to the work outlined
    within these SOWs over the next several weeks as benefit plans and other
    specific Genuity processes become finalized. A key point to remember is that
    these types of changes cannot be implemented overnight.

6.  Maintenance tasks within this SOW are for minor Business As Usual (BAU)
    tasks in support of production. If there are any BAU changes/modifications
    beyond minor maintenance, such as mass re-organizations, benefit plan
    changes, new functionality, etc., these changes/modifications will be
    incorporated into a new development SOW. Specific tasks, prices and
    schedules would be developed for the agreed upon SOW.

7.  Genuity agrees to review HR audit reports and act upon any errors identified
    in a timely manner to ensure data integrity within the system and with
    downstream vendors.

8.  Upgrades/Enhancements: For any systems where a common development
    environment exists, e.g., SAP, Employee Data Warehouse (EDW), Quincy
    Processing Center (QPC) systems, agrees to abide by the standards, changes,

                                                                  Page 53 of 114
<PAGE>

    upgrades, and enhancements that have been, or will be, developed and
    implemented across the environment. A proportion of the on-going development
    tasks will be apportioned to Genuity in the same manner as production costs
    as allocated. Examples include Employee Self Service (ESS) enhancements,
    Manager's Desktop, On-line Org Charts. Genuity will participate in a user
    forum to assist in prioritizing these enhancements.

    Should Genuity desire to not abide by, and share appropriate costs for, the
    baseline system configuration and associated upgrades and enhancements, a
    completely separate physical environment for Genuity would be warranted. GTE
    would be pleased to develop a technical and cost proposal for such work at
    the request of Genuity.

9.  This SOW highlights both production tasks and one-time development tasks
    that must also be performed to set up or establish the systems environment
    for Genuity.

GTE SERVICE CORPORATION             GENUITY INC.

By:___________________________      By:___________________________

Title:__________________________    Title:__________________________

                                                                  Page 54 of 114
<PAGE>

                               STATEMENT OF WORK
                               -----------------

                         REAL ESTATE RELATED SERVICES
                         ----------------------------

This Statement of Work is appended to the Agreement for Transition Services (the
"Agreement") dated ______________, by and between Genuity Inc. ("Genuity") and
GTE Service Corporation ("GTE"), and shall be governed by the terms and
conditions thereof. The services described herein shall be provided during the
initial one-year term of the agreement unless otherwise mutually agreed and
except as expressly set forth below in this SOW.

The purpose of this SOW is to provide for the transition of a variety of real
estate related services.  The services as described in this SOW relate to real
estate project management, real estate administration, various building services
(including dispatch center services for building-related work requests, building
maintenance services for POP sites, and invoice processing services for invoices
associated with building-related work requests), environmental and safety
services, and building security services.  Genuity desires to retain GTE to
provide these services during a transitional period while Genuity hires
necessary staff, implements necessary processes and procedures, and enters into
necessary third party contracts in order to permit the smooth operation of its
business until Genuity is better prepared to handle these services independently
of GTE.  None of the services set forth in this SOW are expected to continue for
longer than the initial one-year term of the Agreement.

                    REAL ESTATE PROJECT MANAGEMENT SERVICES

GTE Corporate Real Estate provides project management services for major real
estate projects, including strategic planning, design and construction
management, and accounting project control.  Genuity desires to retain GTE to
provide these services as needed and requested by Genuity through written
project authorizations.  Any project authorization may be terminated by either
party on 30 days written notice as set forth below.

1.  GTE shall provide real estate project management services for major real
    estate projects, as requested and ordered by Genuity through a written
    project authorization, which shall be subject to GTE's written acceptance
    and approval. Project types may include new leases, lease renewals,
    acquisitions by fee, relocations, build-to-suits and any other project
    involving real estate services. Project management services include:

     .   Evaluate project alternatives to determine cost-effective real estate
         strategies.
     .   Negotiate with outside real estate brokers and developers with respect
         to acquisitions and/or dispositions of real property.
     .   Develop total project budgets.
     .   Coordinate the work of Genuity's outside consultants, including but not
         limited to attorneys and environmental consultants.
     .   Manage the overall real estate project.

2.  GTE shall provide design and construction management services for major real
    estate projects, as requested and ordered by Genuity through a written
    project authorization, which shall be subject to GTE's written acceptance
    and approval. Project

                                                                  Page 55 of 114
<PAGE>

    types may include build-to-suits and any other project involving design
    and construction of real estate improvements.  Design and construction
    management services include:

     .   Review Genuity's initial project assumptions and development of
         preliminary cost estimates, preliminary project programming, and
         preliminary schedule.
     .   Identify, evaluate and recommend outside project consultants.
     .   Coordinate and track the progress of overall design development and
         construction document preparation process.
     .   Manage value engineering process.
     .   Conduct construction management activities.
     .   Coordinate the work of outside design and construction consultants,
         including architects and engineers.
     .   Track and update budgets and schedules.
     .   Manage project closeout activities.

3.  GTE shall provide project control services for major real estate projects,
    as requested and ordered by Genuity through a written project authorization,
    which shall be subject to GTE's written acceptance and approval.  Project
    control services include:

     .   Provide accounting project management support on all phases of a
         project plan, design, construction and closeout.
     .   Issue control guidelines and ensure that project commitments and
         expenditures are properly tracked against approved budgets.
     .   Create and update project's financial forecast (outlook).
     .   Prepare and issue a weekly project outlook to the project team.
     .   Review the project for compliance against accepted control practices
         and issue an exception report.
     .   Process approvals for contractor, developer, architect and other vendor
         change requests and reconcile approved change requests to the change
         request log and project outlook.
     .   Audit construction and professional fee invoices to ensure compliance
         to contracts, project control guidelines, and generally accepted
         accounting principles.

4.  Service Commitment.  GTE shall follow all Genuity processes and procedures
    that are communicated to GTE.

Genuity's Responsibilities with respect to Real Estate Project Management
-------------------------------------------------------------------------
Services
--------

Genuity shall prepare and submit a project authorization for any real estate
project management services requested under this SOW.  The project authorization
shall include a description of the project and a description of any specific
services required by Genuity as part of the project management services.  In
addition, Genuity shall provide project support staff as necessary to assist in
the coordination of IT, furniture and move requirements.

Pricing Structure with respect to Real Estate Project Management Services
-------------------------------------------------------------------------

GTE may use GTE-approved subcontractors to provide any of the real estate
project management services under this SOW, with supervision of such
subcontractors to be provided by GTE.  During the initial one-year term of the
agreement, Genuity shall pay GTE the following fees for these services:

                                                                  Page 56 of 114
<PAGE>

          GTE Project Director    $145 per hour
          GTE Project Manager     $135 per hour
          GTE Project Controller  $115 per hour
          GTE Project Accountant  $ 70 per hour
          Subcontractors          direct cost

In addition to these fees and charges, Genuity shall reimburse GTE for (i) all
travel-related costs and expenses in accordance with the terms of the agreement,
(ii) all costs and expenses for long distance, communications, reproductions,
courier and delivery services, and postage incurred by GTE in the performance of
these services, and (iii) all costs and expenses of consultants or other 3rd
party services retained for or on behalf of Genuity in connection with the
performance of real estate project management services, such as appraisals,
surveys and marketing materials.  GTE shall submit monthly invoices to Genuity
for the real estate project management services.

Other Specific Terms or Conditions with respect to Real Estate Project
----------------------------------------------------------------------
Management Services
-------------------

GTE may use GTE-approved subcontractors to perform any of the real estate
project management services under this SOW.

Real estate project management services may be ordered by Genuity only through a
written project authorization.  All project authorizations shall be subject to
GTE's written acceptance and approval.

Any project authorization may be terminated by either party for any or no reason
upon 30 days written notice.  In the event of termination, Genuity shall pay GTE
for all services performed through the date of termination.

Notwithstanding the expiration of the term of this SOW, this SOW shall remain in
effect with respect to and for the duration of any project authorization entered
into under this SOW that by its terms extends beyond the expiration of this SOW.

                      REAL ESTATE ADMINISTRATION SERVICES

GTE Corporate Real Estate provides lease administration services, new lease and
lease renewal support, and support for acquisitions and dispositions of owned
real estate.  In connection with these services, real estate information is
entered into a GTE-owned real estate database.  Genuity desires to use the GTE-
owned real estate database and to retain GTE to provide these services during a
transition period while Genuity builds its own real estate organization and
evaluates the service options available to it from other third party providers.
The real estate administration services may be terminated by Genuity on 60 days
written notice as set forth below.

1.  GTE shall furnish the GTE Real Estate Database for use by GTE, GTE's
    subcontractors and Genuity personnel during the term of this SOW for
    maintenance of Genuity's real estate data. Genuity's use of the GTE Real
    Estate Database is limited to the use described in this SOW and the services
    to be provided by GTE in connection therewith are expressly limited to the
    following:

                                                                  Page 57 of 114
<PAGE>

     .   Install a duplicate copy of the GTE Real Estate Database (RED),
         transfer to this duplicate database (Duplicate RED) all Genuity records
         residing on RED, and provide access rights to Duplicate RED to
         appropriate GTE personnel and subcontractors.
     .   If and as requested by Genuity, setup additional Genuity users on
         Duplicate RED and train Genuity personnel on use of RED.

     Genuity's rights to use Duplicate RED shall automatically terminate upon
     expiration or termination of this SOW.

2.  GTE shall provide the following real estate lease administration services:

     .   Prepare lease abstract and lease responsibility matrix for all executed
         leases. Lease abstracts shall include property information (such as
         address and square footage), rent stream during entire term, escalation
         clauses, sales tax, critical dates (such as scheduled rent increases
         and renewal options), and other special options and clauses (such as
         expansion rights and rights of first refusal)
     .   Enter lease data in Duplicate RED, including all actions required to
         set up property on Duplicate RED and entry of data from lease abstract.
     .   File set-up, including distribution of new lease and/or lease renewal
         notification letters to distribution list identified by Genuity,
         together with copies of lease abstract and lease responsibility matrix.
     .   Coordinate insurance, including communication with insurance contacts
         as identified and directed by Genuity to secure certificates of
         insurance and follow-up with landlords to insure receipt.
     .   Complete and process payment forms as identified and directed by
         Genuity.
     .   Critical date reporting, as well as on-going review of, and initiation
         of actions identified on critical date reports.
     .   Operating expense true-ups, including review of landlords' operating
         expense reconciliations to confirm consistency and compliance with
         lease terms, including accuracy of landlords' computations.
     .   Process estoppel certificates and non-disturbance, subordination and
         attornment agreements, including review and confirmation of lease terms
         and coordination of legal review by Genuity's designated legal counsel.
     .   "Lease-To" administration, including preparation of forms for billing
         tenants and subtenants for all leases-to's and subleases, notification
         of rent payment adjustments, processing insurance certificates, and
         abstracting new leases.
     .   Process standard reports from information resident in Duplicate RED.
     .   Budget support, such as provision of current rent information with
         projected base rent increases and estimated operating expense
         adjustments.
     .   Administer landlord/tenant communications, including escalation point
         of contact with landlords on maintenance issues and follow-up with
         Genuity and preparation of letters to landlords to communicate address
         or reporting changes.

3.  GTE shall provide new lease and complex lease renewal administrative
    support, specifically:

     .   Database input, including entry of request/assignment in Duplicate RED
         and coordination of responsibilities concerning the new lease or
         complex renewal.
     .   On-going coordination and communication among all responsible persons.

                                                                  Page 58 of 114
<PAGE>

     .   Coordinate and process internal approval documentation based on
         approval matrix submitted by Genuity and as otherwise identified and
         directed by Genuity, such as preparation of financial analyses and
         Genuity requisition forms, comparison of business case information with
         financial analyses to conform to Genuity requirements, and tracking of
         internal approval documents until fully executed.
     .   Lease document review and preparation of proposed revisions and
         comments.
     .   Coordinate legal review by Genuity's designated legal counsel.
     .   Submit approved lease documentation for execution.
     .   Weekly review of all current files, participation in project meetings
         for communication with Genuity team, and preparation of any
         correspondence or additional documents to resolve special issues.

4.  GTE shall provide administrative support for simple lease renewals,
    specifically:

     .   Coordinate and process internal approval documentation based on
         approval matrix submitted by Genuity and as otherwise identified and
         directed by Genuity.
     .   Review of lease document for terms and conditions of renewal.
     .   Prepare notification letters to landlords.
     .   Communicate with individuals designated by Genuity to ensure that rent
         payments are current during the renewal phase.
     .   Coordinate legal review by Genuity's designated legal counsel.
     .   Submit approved documentation for execution.

5.  GTE shall provide administrative support for "lease-to's" (both affiliate
    and non-affiliate transactions), specifically:

     .   Receive and review initial request from prospective tenant, and
         coordinate completion of any requisite internal approval forms based on
         approval matrix submitted by Genuity and as otherwise identified and
         directed by Genuity.
     .   Determine fair market value for lease rate.
     .   Coordinate and process any internal approvals as identified and
         directed by Genuity.
     .   Respond to questions and requests and participate in meetings as
         necessary.
     .   Prepare lease document and coordinate legal review and approval by
         Genuity's designated legal counsel.
     .   Circulate approved lease documents for execution.

6.  GTE shall provide administrative support for real property acquisitions,
    specifically:

     .   Database input, including entry of request/assignment in Duplicate RED
         and coordination of responsibilities concerning the acquisition, as
         well as on-going entry of updates on progress of site selection.
     .   Distribute information about prospective sites to individuals
         designated by Genuity.
     .   Prepare, submit and route any concurrence memoranda to various Genuity
         departments and/or individuals as identified and directed by Genuity
         (such as Environmental Affairs, Building Services and Network
         Construction).
     .   Order appraisals and brokers' opinions of value as directed by Genuity.

                                                                  Page 59 of 114
<PAGE>

     .   Order title search and a survey and route to appropriate individuals as
         identified and designated by Genuity.
     .   Coordinate and process internal approval documentation based on
         approval matrix submitted by Genuity and as otherwise identified and
         directed by Genuity, such as preparation of financial analyses and
         Genuity requisition forms, comparison of business case information with
         financial analyses to conform to Genuity requirements, and tracking of
         internal approval documents until fully executed.
     .   Coordinate preparation of purchase contract, review purchase contract
         and prepare proposed revisions and comments, and coordinate legal
         review by Genuity's designated legal counsel.
     .   Submit approved purchase contract for execution by Genuity.
     .   Post-closing, prepare log of all charges associated with acquisition of
         property.
     .   Notify individuals designated by Genuity of the property acquisition
         and distribute copies of relevant closing documents as directed by
         Genuity.
     .   Participate in project meetings for communication with Genuity team,
         prepare any correspondence or additional documents to resolve special
         issues, and route invoices for payment.

7.  GTE shall provide administrative support for disposition of owned real
    estate, specifically:

     .   Research inquiries from interested parties.
     .   Prepare, submit and track any concurrence memoranda to various Genuity
         departments and/or individuals as identified and directed by Genuity.
     .   Prepare summary of responses to concurrence memoranda and submit to
         Genuity for further direction.
     .   If Genuity declares property to be surplus, coordinate disposition.
         Obtain appraisal or broker's opinion of value; compile property
         information file and obtain any documents or information not received
         during research phase; present information to Genuity for determination
         of sales price; and handle and coordinate negotiations with prospective
         buyer.
     .   Market property.
     .   Coordinate and process internal approval documentation based on
         approval matrix submitted by Genuity and as otherwise identified and
         directed by Genuity, such as preparation of financial analyses and
         Genuity requisition forms, comparison of business case information with
         financial analyses to conform to Genuity requirements, and tracking of
         internal approval documents until fully executed.
     .   Coordinate preparation of sales contract, review sales contract and
         prepare proposed revisions and comments, and coordinate legal review by
         Genuity's designated legal counsel.
     .   Submit approved sales contract for execution by Genuity.
     .   Notify individuals designated by Genuity of the property disposition
         and distribute copies of relevant closing documents as directed by
         Genuity.
     .   Post-closing, prepare log of all charges associated with marketing and
         sale of property.
     .   Participate in project meetings for communication with Genuity team,
         prepare any correspondence or additional documents to resolve special
         issues, and route invoices for payment.
     .   Maintain Genuity owned real estate information in Duplicate RED.

                                                                  Page 60 of 114
<PAGE>

8.  Service Commitment.  GTE shall follow all Genuity processes and procedures
    that are communicated to GTE.

Genuity's Responsibilities with respect to Real Estate Administration Services
------------------------------------------------------------------------------

Genuity shall provide all information required for GTE to perform its duties
hereunder.

Pricing Structure with respect to Real Estate Administration Services
---------------------------------------------------------------------

GTE may use GTE-approved subcontractors to provide any of the real estate
administration services under this SOW, with supervision of such subcontractors
to be provided by GTE.  During the initial one-year term of the agreement,
Genuity shall pay GTE the following fees for these services:

  Annual Administrative Fee:       $110,000.00, payable in equal
                                   monthly installments of $9,166.67; this
                                   administrative fee covers all travel, general
                                   office expenses and other overhead

  Subcontractors:                  direct cost for all services obtained from
                                   subcontractors, including without limitation
                                   all costs associated with installation and
                                   administration of Duplicate RED and all
                                   transaction fees payable in connection with
                                   brokerage services, EXCEPT for any
                                   administrative fee payable by GTE to Cushman
                                   & Wakefield, Inc. and/or The Staubach Company
                                   and/or any subcontractor providing similar
                                   administrative services.

GTE estimates that the subcontractor fees associated with installation of
Duplicate RED will be approximately $13,000.00, plus approximately $400.00 for
each additional user designated by Genuity.

In addition to these fees and charges, Genuity shall reimburse GTE for all costs
and expenses of consultants or other 3rd party services retained for or on
behalf of Genuity in connection with the performance of real estate
administration services, such as appraisals, surveys and marketing materials.
GTE shall submit monthly invoices to Genuity for the real estate administration
services.

Other Specific Terms or Conditions with respect to Real Estate Administration
-----------------------------------------------------------------------------
Services
--------

GTE may use GTE-approved subcontractors to perform any of the real estate
administration services under this SOW. Without limiting the generality of the
foregoing, Genuity acknowledges and agrees that GTE may subcontract any or all
of the real estate administration services to Cushman & Wakefield, Inc. and The
Staubach Company and their respective affiliates.

                                                                  Page 61 of 114
<PAGE>

Genuity may terminate the real estate administration services set forth herein
for any or no reason upon 60 days written notice.  In the event of such
termination, Genuity shall pay GTE for all services performed through the date
of termination.

                            DISPATCH CENTER SERVICES

GTE Support Assets provides a 24-hour call center for entry and dispatching of
work requests for certain building services.  Genuity desires to retain GTE to
provide these services during a transition period while Genuity makes alternate
arrangements for these services. GTE has agreed to provide these services
through December 31, 2000; however, Genuity may terminate these services at any
time as set forth below.

1.  GTE shall provide 24-hour call center and dispatch function for building
    operation, maintenance and repair and for furniture repairs and
    rearrangements. Work will be dispatched to the employee or contractor
    designated by Genuity.

2.  Service Commitment.  GTE will dispatch each work request within 10 minutes
    of receiving the call.

Term for Dispatch Center Services
---------------------------------

GTE shall provide these dispatch center services through December 31, 2000,
subject to termination of these services by Genuity at any time in its sole and
absolute discretion.

Genuity's Responsibilities with respect to Dispatch Center Services
-------------------------------------------------------------------

Genuity shall provide all information required for GTE to perform its duties
hereunder including, but not limited to, (a) the names and contact information
for all employees and contractors designated by Genuity to receive work requests
for (i) building operation, maintenance and repairs and (ii) furniture repairs
and rearrangements, and (b) location, contact information, and the nature of
services required for each work request.

Pricing Structure for Dispatch Center Services
----------------------------------------------

Genuity shall pay GTE at a rate of $9.70 per work request.  GTE shall submit
quarterly invoices to Genuity for these dispatch center services.

Other Specific Terms or Conditions with respect to Dispatch Center Services
---------------------------------------------------------------------------

The parties understand and agree that GTE may cause these dispatch center
services to be provided by or through one of its Network Services affiliates.

                     POP SITE BUILDING TECHNICIAN SERVICES

GTE Support Assets manages building technicians who provide building maintenance
and repair services to certain points of presence (POP sites) on Genuity's fiber
optic network. Genuity desires to retain GTE to provide these building
maintenance and repair services during a transition period to allow Genuity to
make alternate arrangements for these

                                                                  Page 62 of 114
<PAGE>

services. GTE has agreed to provide these services through December 31, 2000;
however, Genuity may terminate these services at any time as set forth below.

1.  GTE shall provide building repairs and maintenance for (number) currently
    existing Genuity POP sites as requested by Genuity. Maintenance shall
    include preventative maintenance as well as maintenance and repairs
    necessitated by equipment failure. No new POP sites will be added to the
    number of POP sites covered by this agreement.

2.  GTE is hereby authorized to purchase parts and materials up to $500.00 per
    work request in connection with the performance of these services without
    any other or further authorization from Genuity. GTE shall not purchase any
    parts or materials in excess of $500 per work authorization without prior
    authorization from Genuity.

3.  Service Commitment.  Building technicians will respond within the following
    time frames:

          Emergency (Priority 1) - within 24 hours
          Non-emergency (Priority 3) - within 7 days

Term for POP Site Building Technician Services
----------------------------------------------

GTE shall provide these POP site building technician services through December
31, 2000, subject to termination of these services by Genuity at any time in its
sole and absolute discretion.

Genuity's Responsibilities with respect to POP Site Building Technician Services
--------------------------------------------------------------------------------

Genuity shall provide all information required for GTE to perform its duties
hereunder.  In addition, Genuity shall provide access to all sites, and contact
information for an Genuity contact with whom to discuss problem resolution.

Pricing Structure with respect to POP Site Building Technician Services
-----------------------------------------------------------------------

Genuity shall pay GTE at a rate of $34.32 per hour for these services, including
travel time.  In addition to the hourly fees, Genuity shall reimburse GTE for
all travel-related costs and expenses and the cost of all parts and materials
used by GTE and/or the building technicians in the performance of these
services, all in accordance with the terms of the agreement and this SOW. GTE
shall submit quarterly invoices to Genuity for these POP site building
technician services.

Other Specific Terms or Conditions with respect to POP Site Building Technician
-------------------------------------------------------------------------------
Services
--------

GTE may use GTE-approved subcontractors to perform the POP site building
technician services described in this SOW.  Without limiting the generality of
the foregoing, the parties further understand and agree that GTE may cause these
building technician services to be provided by or through one of its Network
Services affiliates.

                                                                  Page 63 of 114
<PAGE>

                        FM INVOICE PROCESSING SERVICES

GTE Support Assets provides invoice processing services for invoices associated
with work requests generated by the call center and entered into its FM system.
Genuity desires to retain GTE to provide these invoice processing services
during a transition period to allow Genuity to make alternate arrangements for
these services. GTE has agreed to provide these services for all invoices
associated with a FM invoice through December 31, 2000; however, Genuity may
terminate these services at any time as set forth below.

1.  GTE shall perform all invoice processing of all Genuity invoices for
    building and furniture-related work associated with a FM work request. GTE
    shall receive, review and electronically process these invoices for approval
    and payment though the FM system and the GTE accounts payable system.

2.  Service Commitment.  GTE shall process each invoice within three business
    days of receipt.

Term for FM Invoice Processing Services
---------------------------------------

GTE shall provide these FM invoice processing services through December 31,
2000, subject to termination of these services by Genuity at any time in its
sole and absolute discretion.

Genuity's Responsibilities with respect to FM Invoice Processing Services
-------------------------------------------------------------------------

Genuity shall provide all information/instruction regarding processing and
payment of invoices.

Pricing Structure with respect to FM Invoice Processing Services
----------------------------------------------------------------

Genuity shall pay GTE $4.28 per invoice for these services.  GTE shall submit
quarterly  invoices to Genuity for these invoice processing services.

Other Specific Terms or Conditions with respect to FM Invoice Processing
------------------------------------------------------------------------
Services
--------

GTE shall provide these services only for invoices related to a work request
generated from the FM system.  The parties understand and agree that GTE may
cause these FM invoice processing services to be provided by or through one of
its Network Services affiliates.

                      ENVIRONMENTAL SERVICES - IN GENERAL

GTE Environmental Affairs provides a variety of environmental services,
including environmental investigation and inspection services in connection with
real estate transactions, environmental compliance services, and environmental
administration and project management.  Genuity desires to retain GTE to provide
these environmental services during a transition period to allow Genuity to make
alternate arrangements for these services. GTE has agreed to provide
environmental real estate transaction services for all proposed POP sites and
for other sites as requested by Genuity, environmental compliance services as
needed and requested by Genuity, and environmental administration and project
management services.  Genuity may terminate these services upon 60 days written
notice as set forth below.

                                                                  Page 64 of 114
<PAGE>

                ENVIRONMENTAL REAL ESTATE TRANSACTION SERVICES

1.  Upon request by Genuity, GTE shall conduct a Step 1 Phase I. A Step I Phase
    I is a site assessment with a limited scope that may be appropriate for
    certain property transactions, for example a lease of office space where no
    hazardous chemicals are used or stored. GTE may perform these assessments
    or, depending on the location of the property and time constraints, a GTE
    may retain a 3rd party consultant to perform these assessments on behalf of
    Genuity. Upon completion of the Step I Phase I GTE shall deliver to Genuity
    either an E-mail or letter report outlining the issues found at the site and
    any recommendations for additional work.

2.  GTE shall conduct a Phase I site assessment on all properties Genuity
    proposes to use as a POP site and on other properties as requested by
    Genuity. GTE shall retain 3rd party consultants to perform these
    assessments. The Phase I site assessments shall be conducted as per American
    Society for Testing and Materials (ASTM) standards, and shall include a
    detailed history of the condition of the property and surrounding
    properties, as well as data base searches to see if the site has ever been
    listed with any of the Federal, State or local agencies. In addition, the
    Phase I site assessment also determines if any types of hazards exist at the
    site, either from past spills/releases or potential releases. GTE shall
    deliver a preliminary E-mail report outlining the issues found at the site
    and any recommendations for addition work, as well as a formal written Phase
    I report from the 3rd party consultant.

3.  Based upon GTE's recommendations and upon request by Genuity, GTE shall
    conduct a Phase II site assessment on properties at which a Phase I site
    assessment already has been completed and at which issues have been raised
    about possible contamination. GTE shall retain 3rd party consultants to
    perform these assessments. A Phase II site assessment typically includes
    removal of samples and testing, such as soil samples and ground water
    testing. GTE shall propose the scope of the Phase 2 site assessment, which
    shall be subject to review and approval by Genuity. GTE shall deliver a
    preliminary E-mail report outlining the lab results and any recommendations
    for additional work, as well as a formal written Phase II letter report from
    the 3rd party consultant.

4.  Based upon GTE's recommendations and upon request by Genuity, GTE shall
    conduct an Asbestos and Lead Survey on properties that are expected to
    undergo construction renovations and on all properties being offered for
    sale by Genuity. GTE shall retain a 3rd party consultant to perform the
    Asbestos and Lead Survey. The surveys shall include the sampling of any
    suspect asbestos containing materials (ACM) and any suspect lead painted
    surfaces. GTE shall deliver a preliminary E-mail report outlining the lab
    results from the survey and any recommendations on how to conduct any
    recommended abatement, as well as a formal written ACM/Lead Report from the
    3rd party consultant.

5.  Follow-up Evaluation Remediations -If the environmental site assessment for
    a property transaction reveals some type of contamination which must be
    removed, abated, remediated or cleaned-up ("remediation"), GTE shall manage
    the remediation if requested by Genuity. If Genuity retains GTE to manage
    any remediation project, GTE will identify and evaluate 3rd party
    consultants and remediation contractors, will

                                                                  Page 65 of 114
<PAGE>

    review all proposals and negotiate changes to the proposals, and make
    recommendations to Genuity on the best appropriate course of action.

Genuity's Responsibilities with respect to Environmental Real Estate Transaction
--------------------------------------------------------------------------------
Services
--------

Genuity is responsible for providing all information and data required for GTE
to perform its duties hereunder, including, but not limited to, a detailed list
of all new facilities to be considered for new leases/ownership, including
address, point of contact, and age of building. Genuity also shall provide all
information/instruction regarding processing and payment of invoices and expense
reports.

                       ENVIRONMENTAL COMPLIANCE SERVICES
                       ---------------------------------

1.  SPCC Plans - Upon request by Genuity, GTE shall select and retain
    consultants with a Registered Professional Engineer on staff to prepare SPCC
    Plans for all properties as required by Federal regulations, including
    aboveground tanks with a quantity of 660 gallons or an aggregate of 1,320
    gallons or more of any petroleum product, and any underground storage tank
    with an aggregate of 42,000 gallons. GTE shall select the consultant, review
    the draft plan to determine if any corrections need to be made, and review
    and approval the final plan. GTE shall send a copy of each final SPCC Plan
    to the applicable site supervisor and maintain a copy on file. GTE also will
    determine when SPCC Plans require updates.

2.  SPCC Training - Upon request by Genuity, GTE shall provide an employee
    lesson plan and roster sheet to site supervisors in order to permit Genuity
    to comply with Federal regulations that require the annual training of
    employees who may respond to a spill involving a SPCC regulated tank. GTE
    will maintain a copy of the training roster and will follow-up on any
    rosters not received.

3.  Business Emergency Plans and SARA Title III Reporting - Upon request by
    Genuity, GTE shall review Federal, State and Local regulations relating to
    hazardous materials and complete all mandated reporting to the state-
    administering agencies for SARA Title III reports and state-mandated
    business emergency and other types of plans triggered by certain quantities
    of hazardous materials. GTE shall retain a 3rd party consultant to write
    site-specific business plans as required by the regulations.

4.  Compliance Inspections - Upon request by Genuity, GTE shall perform
    compliance inspections at a designated percentage of reportable facilities.
    GTE shall verify the information submitted to the state agencies, including
    Battery and Fuel Storage data and completion of the eleven-part GTE
    Inspection report. GTE shall submit an inspection report to the site
    supervisor so that the site supervisor may correct any deficiencies found
    during the Inspection.

                                                                  Page 66 of 114
<PAGE>

5.  Spill Kits for Batteries and Fuel Oil Tanks - Upon request by Genuity, GTE
    shall provide spill control equipment as required at Genuity facilities that
    use or store hazardous materials.

6.  Hazardous and Regulated Chemical Wastes - Upon request by Genuity, GTE shall
    manage the disposal of Genuity's Universal Wastes in accordance with
    Federal, State and Local regulations. . GTE shall verify applicable disposal
    requirements, select contractors/disposal firms to handle/dispose/recycle
    the wastes, determine if facilities need an EPA ID number, complete all
    applicable paperwork, schedule pickups, and obtain copies of the shipping
    papers for permanent records.

7.  Disposal/Recycling of Batteries - Upon request by Genuity, GTE will arrange
    for the disposal of Genuity's lead-acid batteries if such a need arises
    outside of the terms of Genuity's battery maintenance agreement. GTE shall
    set up a national service agreement for battery disposal. If requested by
    Genuity, GTE shall provide a list of battery recycling facilities and shall
    audit the disposal/recycling facilities. In addition, GTE will check local
    and state regulatory requirements to determine if there are any restrictions
    on battery disposal. GTE will complete and submit all applicable
    notifications/documentation required by regulatory agencies.

Genuity's Responsibilities with respect to Environmental Compliance Services
----------------------------------------------------------------------------

Genuity is responsible for providing all information and data required for GTE
to perform its duties hereunder including, but not limited to, copies of all
environmental violations or citations, notification of any spill/release of
chemical of concern, hazardous/regulated waste transportation records,
hazardous/regulated waste disposal records, and information about all new
Genuity facilities. For each new Genuity facility, Genuity shall advise GTE if
the facility has any aboveground storage tanks (AST's) or lead-acid batteries,
and if it does the size and contents of the AST's, as well as number,
manufacturer, make and model of lead-acid batteries. Genuity shall provide
access to sites for GTE and GTE's 3rd party contractor personnel as needed and
appropriate to complete reports, inventories, plans and assessments. Genuity
shall provide or confirm chemical inventory information, site contact
information and other data needed to complete reports, plans and inventories.
Genuity shall inform and/or train its employees concerning chemical safety,
emergency contingency procedures and chemical release provisions of written
plans at Genuity sites. Genuity shall inform GTE of facility changes that
trigger a need to revise inventories, business plans, spill plans or contingency
plans. Genuity also shall provide all information/instruction regarding
processing and payment of invoices and expense reports.

                     ENVIRONMENTAL ADMINISTRATION SERVICES

1.  Record Retention - GTE shall administer the paperwork as well as process and
    archive required records in a central system. GTE shall keep Genuity's
    records separate from GTE environmental records. Genuity's records shall be
    the property of Genuity and will be transferred to Genuity, at Genuity's
    expense, as and when directed by Genuity.

2.  Review Reports - In addition to the reports to be reviewed by GTE under
    other provisions of this SOW, GTE will review and provide comments and
    recommendations to

                                                                  Page 67 of 114
<PAGE>

    Genuity concerning 3rd party consultants' work products and reports as
    requested by Genuity. GTE also will edit, help define and make
    recommendations to Genuity on applicable scopes of work for various
    projects.

3.  Vendor Contracts - Upon request by Genuity, GTE will assist Genuity with
    contract negotiations with various 3rd party environmental consultants.

4.  Review Invoicing - GTE will review all invoices submitted by 3rd parties
    retained by GTE for accuracy and timely billing. GTE shall verify each
    invoice against the original contract proposal and shall process invoices in
    accordance with Genuity instructions to GTE.

Genuity's Responsibilities with respect to Environmental Administrative Services
--------------------------------------------------------------------------------

Genuity is responsible for providing all information and data required for GTE
to perform its duties hereunder including, but not limited to, a list of vendors
with whom Genuity desires to enter into contracts and procedures for record
retention. Genuity also shall provide all information/instruction regarding
processing and payment of invoices and expense reports.

                   ENVIRONMENTAL PROJECT MANAGEMENT SERVICES

1.  Point of Contact - GTE shall designate a single point of contact to
    administer, monitor and follow-up on all work and program efforts. This
    project manager will provide monthly reports on program and compliance
    status to Genuity management.

2.  Environmental Data Base - GTE shall establish an environmental database for
    GNI environmental work. The database will summarize by facility
    environmental work completed and key environmental characteristics of each
    site.

3.  Reports - GTE shall provide standardized reports and metrics concerning the
    status of environmental programs to Genuity in mutually agreed formats. GTE
    and Genuity shall jointly devise and mutually agree upon reports frequency
    and content.

4.  Invoicing - GTE will submit monthly invoices to Genuity for each month's
    service fee. The invoices will include a break down of labor costs by
    category and a separate line item for each expense category. GTE will retain
    monthly time sheets for each staff member that worked on the Genuity program
    showing their hours and the nature of the work performed. Invoices for
    contractor work and travel expense accounts will also be available by month.
    These backup records are to be maintained for three years. GTE shall make
    supporting documentation available for Genuity's review at GTE's offices at
    any time during normal business hours.

Genuity's Responsibilities with respect to Environmental Project Management
---------------------------------------------------------------------------
Services
--------

Genuity shall provide all information and data required for GTE to perform its
duties hereunder including, but not limited to, providing GTE an Genuity point
of contact to coordinate project management services and data needed to develop
and maintain an

                                                                  Page 68 of 114
<PAGE>

environmental database. Genuity also shall provide all
information/instruction regarding processing and payment of invoices and expense
reports.

Pricing Structure for All Environmental Services Described in this SOW
----------------------------------------------------------------------

          Program Administrator             $76.00 per hour
          Program Manager                   $57.00 per hour
          Administrative                    $31.00 per hour
          Subcontractors and Consultants    direct cost + 10%

In addition to these fees and charges, Genuity shall reimburse GTE for all
travel-related costs and expenses in accordance with the terms of the agreement
and for all costs and expenses for long distance, communications, reproductions,
courier and delivery services, postage and supplies incurred by GTE in the
performance of these services.

Other Specific Terms or Conditions with respect to Environmental Services
-------------------------------------------------------------------------

GTE may use GTE-approved subcontractors to perform any of the environmental
services under this SOW.

Any or all of the Environmental Services described in this SOW may be terminated
by Genuity for any or no reason upon 60 days written notice.  In the event of
termination, Genuity shall pay GTE for all services performed through the date
of termination.

LIMITATIONS WITH RESPECT TO ALL ENVIRONMENTAL SERVICES
------------------------------------------------------

     GTE makes no representation or warranty concerning Genuity's environmental
     compliance; it is not possible for GTE to warrant Genuity's environmental
     compliance. GTE, acting in the capacity of an environmental consultant to
     Genuity, shall perform the environmental services described in this SOW in
     accordance with generally accepted practices in the environmental
     consulting field. Genuity acknowledges and agrees that GTE must, of
     necessity, rely upon information reported by Genuity employees and 3rd
     parties.  GTE is not responsible for the accuracy of information provided
     by Genuity or any 3rd party, including without limitation subcontractors
     and consultants retained by GTE.  Although this SOW states that GTE shall
     provide a variety of reports, the parties understand and agree that GTE's
     primary responsibility with respect to reports generated by 3rd parties is
     for GTE to coordinate and review such reports, using that degree of care
     GTE routinely exercises with respect to similar reports for its own
     properties.

     Genuity shall inform GTE of all pertinent details of Genuity properties and
     operations that have environmental implications. Genuity also has
     responsibility to physically maintain its sites and the on-site records
     specified by GTE. Genuity is responsible for ensuring that its on-site
     personnel attend training and refresher reviews of the plans and procedures
     written for their respective sites.

                                                                  Page 69 of 114
<PAGE>

                                SAFETY SERVICES

GTE Safety provides certain safety management, analysis, inspection and
administrative services.  Genuity desires to retain GTE to provide these
services during an interim period while Genuity makes alternate arrangements for
these services. GTE has agreed to provide the identified safety services as
needed and requested by Genuity.  Genuity may terminate these services upon 60
days written notice as set forth below.

1.  GTE shall provide the following safety services upon request of Genuity:

     .   On-site safety management services. Genuity shall provide a single
         point of contact to administer, monitor, and follow-up on program
         activities.
     .   On-site job safety analysis to identify potential hazards and develop
         site specific recommendations for corrective action.
     .   Inspection of Genuity facilities and operations to monitor compliance
         with occupational safety regulations.
     .   Respond to or contest an OSHA citation at the informal hearing level
         and higher.
     .   Identify site-specific safety training requirements, such as defensive
         driving, first aid/CPR, lockout/tagout, hearing conservation, hazard
         communication, emergency evacuation, and ergonomics. GTE may conduct
         this training or coordinate the appropriate training through a third
         party vendor.
     .   Provide local supervision with root-cause investigation support for
         serious injuries or vehicle collisions that result in a loss time
         injury or fatality.
     .   Coordination with a Certified Industrial Hygiene vendor to resolve
         indoor air quality issues in facilities owned or leased by Genuity.
     .   Assist in the development of building emergency evacuation plans for
         Genuity facilities.

2.  In connection with such safety services, GTE shall provide the following
    safety program administration services:

     .   Record Retention - GTE shall administer the paperwork as well as
         process and archive required records in a central system. GTE shall
         keep Genuity's records separate from GTE safety records. Genuity's
         records shall be the property of Genuity and will be transferred to
         Genuity, at Genuity's expense, as and when directed by Genuity.
     .   Vendor Contracts - Upon request by Genuity, GTE will assist Genuity
         with contract negotiations with various 3rd party consultants. In
         addition, as requested by Genuity, GTE shall monitor Genuity's
         consultants for quality control, cost-effective solutions, timely
         delivery of reports and otherwise to protect the interests of Genuity.
     .   Review Invoicing - GTE will review all invoices submitted by 3rd
         parties retained by GTE for accuracy and timely billing. GTE shall
         verify each invoice against the original contract proposal and shall
         process invoices in accordance with Genuity instructions to GTE.

                                                                  Page 70 of 114
<PAGE>

     .   Standardized Reports - As requested by Genuity, GTE shall provide
         standardized reports concerning the status of safety support activities
         in a mutually agreeable format. Frequency and content of reports to be
         mutually agreed upon.
     .   Invoicing - GTE will submit monthly invoices to Genuity for each
         month's service fee. The invoices will include a break down of labor
         costs by category and a separate line item for each expense category.
         GTE will retain monthly time sheets for each staff member that worked
         on the Genuity program showing their hours and the nature of the work
         performed. Invoices for contractor work and travel expense accounts
         also will be available by month. These backup records are to be
         maintained for three years. GTE shall make supporting documentation
         available for Genuity's review at GTE's offices at any time during
         normal business hours.

Genuity's Responsibilities with respect to Safety Services
----------------------------------------------------------

Genuity shall provide all information required for GTE to perform its duties
hereunder. Genuity must inform GTE of the pertinent details of any of Genuity's
operations that may have employee safety implications.

Pricing Structure with respect to Safety Services
-------------------------------------------------

          Safety Director                   $76.00 per hour
          Safety Specialist                 $57.00 per hour
          Subcontractors and Consultants    direct cost + 10%

In addition to these fees and charges, Genuity shall reimburse GTE for all
travel-related costs and expenses in accordance with the terms of the agreement
and for all costs and expenses for long distance, communications, reproductions,
courier and delivery services, postage and supplies incurred by GTE in the
performance of these services.

Other Specific Terms or Conditions with respect to Safety Services
------------------------------------------------------------------

GTE may use GTE-approved subcontractors to perform any of the safety services
under this SOW.

Any or all of the safety services described in this SOW may be terminated by
Genuity for any or no reason upon 60 days written notice.  In the event of
termination, Genuity shall pay GTE for all services performed through the date
of termination.

LIMITATIONS WITH RESPECT TO SAFETY SERVICES
-------------------------------------------

     The purpose of this SOW with respect to safety services is to assist
     Genuity in fulfilling its responsibility to establish and maintain a safe
     work environment for employees.  GTE does not (and cannot) warranty
     Genuity's occupational safety compliance and does not assume any of
     Genuity's safety responsibilities.  Genuity must maintain its work place
     free from recognized hazards in accordance with OSHA regulations, ensure a
     safe environment for its employees, and take such steps as are necessary
     and appropriate to prevent accidents or losses.

                                                                  Page 71 of 114
<PAGE>

     Genuity shall inform GTE of all pertinent details of Genuity properties and
     operations that have safety implications. Genuity also has responsibility
     to physically maintain its sites and the on-site records specified by GTE.

                    IRVING-BASED BUILDING SECURITY SERVICES

GTE Security provides ID badge and card key issuance, alarm monitoring and
investigative services for certain Genuity buildings in the Irving, Texas area.
Genuity desires to retain GTE to provide these services during a transition
period while Genuity makes alternate arrangements for these services. Genuity
may terminate these services upon 60 days written notice as set forth below.

1.  GTE shall issue ID badges and/or keycards to Genuity employees upon request
    and approval by an authorized Genuity supervisor. Genuity shall submit the
    ID badge and/or keycard request on a request form approved for use by GTE's
    Employee & Asset Protection department.

2.  GTE will provide 24 hour monitoring of alarms in accordance with current
    practices and procedures in Genuity's buildings in Irving, TX and at which
    GTE currently provides these services. GTE will provide notification of
    alarms to Genuity in accordance with instructions from Genuity. Genuity
    understands and agrees that GTE's sole responsibility under this paragraph
    is to monitor the alarms and give notice of alarms in accordance with
    instructions from Genuity. GTE has no obligations or responsibilities to
    provide any other response to alarms.

3.  Upon request of Genuity, GTE shall perform investigative services for
    Genuity to facilitate fact finding and improve information gathering in
    support of Genuity senior management, as well as to aid in prosecutorial
    activities, facilitate recoveries and encourage loss prevention. GTE shall
    report investigative findings in writing. Upon request of Genuity, GTE shall
    report material findings of criminal acts to the appropriate State or
    Federal criminal justice agency.

Genuity's Responsibilities with respect to Irving-Based Building Security
-------------------------------------------------------------------------
Services
--------

Genuity shall provide all information required for GTE to perform its duties
hereunder, including without limitation current notification information in the
event of an alarm.

Pricing Structure with respect to Irving-Based Building Security Services
-------------------------------------------------------------------------

     ID Badge                                     $2.50 each
     ID Badge & Keycard Combination               $5.00 each

     Alarm Monitoring                             $30.00 per month

     Investigative Services (Other than
     Computer Forensic Investigative Services)    $60.00 per hour

     Computer Forensic Investigative Services     $150.00 per hour

                                                                  Page 72 of 114
<PAGE>

Hourly rates will be charged for all time spent on investigative services,
including without limitation all time associated with conducting investigations,
reviewing documents, preparing reports and correspondence and attendance at
meetings.

In addition to these fees and charges, Genuity shall reimburse GTE for all
travel-related costs and expenses in accordance with the terms of the agreement
and for all costs and expenses for long distance, communications, reproductions,
courier and delivery services, postage and supplies incurred by GTE in the
performance of these services. GTE shall submit quarterly invoices to Genuity
for these Irving-based security services.

Other Specific Terms or Conditions with respect to Irving-Based Building
------------------------------------------------------------------------
Security Services
-----------------

GTE may use GTE-approved subcontractors to provide any of the Irving-based
building security services described in this SOW, with supervision of such
subcontractors to be provided by GTE; however, Genuity shall not be responsible
for the costs of such subcontractors except as expressly set forth herein.

The parties acknowledge and agree that the alarm monitoring equipment located at
Genuity's premises is owned by Genuity and that Genuity has sole responsibility
for the repair and maintenance of such equipment.  GTE has no obligations or
responsibilities with respect to repair and maintenance of such equipment.

Any or all of the Irving-based security services described in this SOW may be
terminated by Genuity for any or no reason upon 60 days written notice.  In the
event of termination, Genuity shall pay GTE for all services performed through
the date of termination.

LIMITATIONS WITH RESPECT TO IRVING-BASED BUILDING SECURITY SERVICES
-------------------------------------------------------------------

     GTE does not warrant services against intrusion, loss, property damage,
     vandalism, or injury to employees, visitors or contractors.

                  CAMBRIDGE-BASED BUILDING SECURITY SERVICES

Genuity Security provides ID badge and card key issuance, alarm monitoring,
guard services and investigative services for certain GTE buildings in
Cambridge, MA, New London, CT, Rosslyn, VA, and Columbia, MD. These services are
provided from a central security control center located in a GTE-owned building
in Cambridge, MA.  Genuity uses this same security control center to monitor
numerous other Genuity sites.  Accordingly, GTE has agreed to lease the security
control center to Genuity during a transition period to allow Genuity time to
design and construct an alternate security control center at another site.  In
turn, during this transition period, while Genuity has exclusive use and control
of the security control center in Cambridge, MA, Genuity has agreed to provide
certain security services to GTE. These services shall terminate no later than
December 31, 2000; however, Genuity may terminate these services upon 30 days
written notice provided that Genuity's lease of the security control room
likewise terminates upon the date of termination of these services as set forth
below.

The Cambridge-Based Building Security Services to be provided under this SOW are
to be provided under the terms and conditions of the Agreement, EXCEPT for
purposes of these

                                                                  Page 73 of 114
<PAGE>

Cambridge-Based Building Security Services the service
provider is Genuity and the customer is BBNT Solutions LLL ("BBNT"), an
affiliate of GTE.  Accordingly, for purposes of these Cambridge-Based Building
Security Services, (i) Genuity agrees to be bound by the terms of the Agreement
as if it were GTE thereunder, and (ii) GTE and BBNT shall be bound by the terms
of the Agreement as if they were Genuity thereunder.

1.  Genuity shall provide security management and system monitoring services as
described below:

     .   Genuity will provide 24 hour monitoring of the currently installed
         security management system in BBNT's buildings in Cambridge, MA; New
         London, CT; Rossalyn, VA; and Columbia, MD; and will provide
         notification of alarms to BBNT in accordance with instructions from
         BBNT. BBNT is responsible for providing current notification
         information.
     .   Genuity will provide a weekly alarm report and a list of authorized
         card users generated from the DSX security management system.
     .   Genuity will provide response to intrusion alarms on perimeter doors,
         medical emergencies, and other emergency situations. Genuity also will
         provide after-hour employee escorts and vehicle assistance. Genuity
         will provide reasonable response time to service requests, but actual
         time depends on other required duties performed by security personnel.
     .   Genuity will maintain the access control system in proper working order
         at its cost and expense; however, BBNT shall reimburse Genuity for all
         repair costs resulting from the negligence or willful misconduct of
         BBNT or its employees, agents or contractors.
     .   BBNT owns the security system components located in its owned and
         leased buildings covered by this SOW (specifically excluding BBNT's
         subleased premises located at 70 Fawcett Street, Cambridge, MA), EXCEPT
         Genuity owns the security console and the equipment located therein in
         the security control center located at 77 Fawcett Street, Cambridge,
         MA.

2.  Genuity shall provide access control cards and keys as described below:

     .   Genuity will provide access control cards and photo identification to
         BBNT employees in accordance with currently established procedures.
     .   Genuity "owns" the facility code presently used on access control
         cards. Upon expiration or earlier termination of this SOW with respect
         to Cambridge-based security services, BBNT will endeavor to recover and
         return to Genuity the access control cards issued by Genuity.
     .   Genuity will process photo identification / access control cards in
         accordance with the current badge office hours and procedures.
     .   BBNT will provide Genuity with photo badge templates in digital format.
     .   Cost of the first 100 badges per month is included in the monthly
         Security Management Fee. BBNT shall pay a fee of $25 per badge for each
         additional badge in excess of 100 badges issued in any month.
     .   Genuity will maintain the current mechanical key hierarchy until BBNT
         installs an alternate hierarchy. Costs of keys will be included in the
         Security Management Fee. Re-coring costs will be charged at cost + 10%.

                                                                  Page 74 of 114
<PAGE>

3.  Genuity shall perform investigative services for BBNT as described below:

     .   Genuity will provide initial response to reports of internal thefts,
         security complaints and other security-related matters. Genuity's
         initial response and report is included in the Security Management Fee.
     .   Upon request by BBNT, Genuity may provide further investigation beyond
         initial response and report at a cost of $75 per hour. BBNT shall
         reimburse Genuity for all travel-related costs and expenses associated
         with investigations in accordance with BBNT's travel policy. If Genuity
         does not have the capacity or desire to perform investigations beyond
         initial response and report, Genuity shall decline to provide such
         additional investigative services; Genuity shall not retain any third
         party consultants or investigators for or on behalf of BBNT.
     .   BBNT is responsible for background investigations of BBNT new hires

4.  Genuity shall provide guard services to BBNT as described below:

     .   Genuity shall provide routine guard services in accordance with
         existing practices, including guard patrol services to internal and
         external BBNT property and initial emergency response. Genuity will
         manage the guard services.
     .   If BBNT requests any special guard services for moves or other special
         events, BBNT shall pay the direct costs incurred by Genuity in
         accordance with Genuity's guard service contract, plus a 10% management
         fee, for such additional coverage.
     .   Routine guard tours will include required checks of government secured
         containers and rooms.
     .   Genuity will provide government "cleared" guards until May 31, 2000 and
         will provide required response to secure open government containers and
         rooms in accordance with present practices. Genuity will not maintain
         the capability to provide "cleared" response beyond May 31, 2000.

Term for Cambridge-Based Building Security Services and Transition of Services
------------------------------------------------------------------------------

The parties acknowledge that Genuity is leasing the space for the security
control center located at 77 Fawcett Street from BBNT under the terms of a Lease
Agreement of even date herewith.  The parties further acknowledge and agree that
it is the intention of both parties to transition the security services covered
by this SOW from Genuity to BBNT on or before December 31, 2000.  In furtherance
of this transition, Genuity hereby agrees to diligently proceed with the
selection, design, and build-out of an alternate security control center to
which it will migrate all non-BBNT security management and monitoring conducted
by Genuity at 77 Fawcett Street.

This SOW shall terminate with respect to the Cambridge-based security services
upon the earlier of (i) December 31, 2000, or (ii) 30 days after written notice
of termination from Genuity to BBNT; it being understood and agreed that
Genuity's lease of the security control room likewise shall terminate upon the
date of termination of this SOW.  Upon termination of this SOW, the parties
agree to cooperate with each other in transitioning the security services
provided hereunder to BBNT or its designated third party provider.

                                                                  Page 75 of 114
<PAGE>

In addition, and notwithstanding anything to the contrary contained in this SOW,
BBNT may terminate this SOW with respect to the guard services described in
paragraph 4 above upon 30 days written notice to Genuity.

BBNT's Responsibilities with respect to Cambridge-Based Building Security
-------------------------------------------------------------------------
Services
--------

BBNT shall provide all information required for Genuity to perform its duties
hereunder, including without limitation current notification information in the
event of an alarm. As stated above, BBNT also will provide Genuity with photo
badge templates in digital format.

Pricing Structure with respect to Cambridge-Based Building Security Services
----------------------------------------------------------------------------

Genuity may use Genuity-approved subcontractors to provide any of the Cambridge-
based building security services described in this SOW, with supervision of such
subcontractors to be provided by Genuity; however, BBNT shall not be responsible
for the costs of such subcontractors except as expressly set forth herein.

In addition to the fees set forth elsewhere herein, BBNT shall pay Genuity the
following fees for these services:

       System Monitoring Service (including all
       system maintenance and repairs, except
       as expressly set forth in this SOW)      $5,400.00 per month

       Security Management Fee                  $2,675.00 per week

       Routine Guard Services Fee               $3,330.00 per week

Genuity shall submit monthly invoices to GTE for these Cambridge-based security
services.

LIMITATIONS WITH RESPECT TO CAMBRIDGE-BASED BUILDING SECURITY SERVICES
----------------------------------------------------------------------

     Genuity does not warrant services against intrusion, loss, property damage,
     vandalism, or injury to employees, visitors or contractors.  The success of
     any security program is contingent upon the active participation of all
     employees, visitors and contractors and requires the support of all levels
     of management.

GTE SERVICE CORPORATION          GENUITY INC.

By:____________________________  By:_____________________________

Title:_________________________  Title:__________________________

                                                                  Page 76 of 114
<PAGE>

                               Statement Of Work
                                      For
                                Billing Services

This Statement of Work ("SOW") is made by GTE Consolidated Services
Incorporated, ("CSI") and Internetworking,Incorporated and its subsidiary
companies (collectively referred to as "INTERNETWORKING"), and is hereby made a
part of and shall be governed by the Transition Services Agreement.

This SOW establishes the terms and conditions pursuant to which INTERNETWORKING
wishes to obtain from CSI, and CSI shall provide to INTERNETWORKING, billing,
credit and collection services for INTERNETWORKING for a transitional period of
one (1) year, with an opportunity for two (2) one-year renewal terms, or
alternatively, 180 day termination for convenience, at any time during the term
or a renewal term, by INTERNETWORKING. During the transition period,
INTERNETWORKING requires various billing, credit and collection services in
order to properly bill and receive revenue from its customers. CSI has in the
past, and continues to possess, the capability of providing such billing, credit
and collection services to meet the billing, credit and collection needs of
INTERNETWORKING for the continuing and uninterrupted flow of revenue to
INTERNETWORKING.

1.   SERVICES IN GENERAL.

     (a)  This SOW establishes the terms and conditions pursuant to which
INTERNETWORKING shall obtain from CSI, and CSI shall provide to INTERNETWORKING,
billing, credit and collection services regarding INTERNETWORKING
corporate/commercial customers (individually and collectively, "Services")
described in various schedules to this SOW (individually a "Schedule" and
collectively the "Schedules"). To the extent of any conflict or inconsistency
between the terms and conditions of a Schedule and the terms and conditions of
this SOW, the terms and conditions of the applicable Schedule shall control.

     (b)  All Schedules shall: be and are hereby incorporated by reference as a
part of this SOW and shall: (i) describe the type and scope of Services to be
performed, resources to be provided or obligations to be discharged by CSI
pursuant to the SOW; (ii) describe the obligations of INTERNETWORKING related to
this SOW, including any facilities, equipment, personnel and tasks or other
support to be provided or performed by INTERNETWORKING; (iii) specify any other
terms and conditions appropriate to the Services to be performed and the
obligations of the parties relative thereto. The attached Schedules are as
follows:

          Schedule A-Description of Services

                                       1
<PAGE>

          Schedule B-Performance Standards

          Schedule C- Current Products Billed

          Schedule D-Change Request Procedures

          Schedule E- Arbor Conversion

          Schedule F-ATM Services

          Schedule G- Pricing

          Schedule H- Tax Services

     (c)  No changes to the scope of Services shall be permitted unless set
forth in writing pursuant to the procedures set forth in Schedule D, Change
Request Procedures.

2.   CREDIT AND COLLECTION SERVICES.

     (a)  CSI shall perform the credit and collection Services set forth in the
Schedules, upon written request by INTERNETWORKING.

     (b)  In addition to the provisions of the Transition Services Agreement
concerning Compliance with Laws, with regard to Credit and Debt Collection, the
parties, their employees, contractors, agents and assigns shall comply with all
applicable federal, state and local credit and debt collection statutes,
ordinances, regulations, and codes including but not limited to the Fair Credit
Reporting Act, 15 U.S.C. Section 1681, et seq., The Equal Credit Opportunity
Act, 15 U.S.C. Section 1691, et seq., The Fair Debt Collection Practices Act, 15
U.S.C. Section 1692, et seq., and the Consumer Credit Protection Act, 15 U.S.C.
Section 1601, et seq.

3.   INFORMATION TECHNOLOGY REQUIREMENTS.

CSI will provide such records and data processing tools as necessary, to provide
the Services set for herein, either through its own information technology
("IT") resources or those of its affiliates and third party contractors.
INTERNETWORKING will give CSI prompt written notice of any modifications to its
existing records and data systems, when it augments such systems or obtains new
records and data systems, that may materially affect CSI's ability to provide
services hereunder.

4.   REPLACEMENT AND MODIFICATION OF SYSTEMS.

CSI reserves the right to modify or replace its billing systems at any time
during the term hereof, to support increased capacity or new products or
services requested by

                                       2
<PAGE>

INTERNETWORKING or reqired for the performance of Services by CSI ("Changes"),
provided, however, such Changes will not result in any material loss of
functionality of such billing systems or Services. CSI shall give
INTERNETWORKING immediate notice of such Changes. . INTERNETWORKING understands
and agrees that as used herein, the term "billing systems" shall refer solely to
the protocol that CSI employs in tandem with the particular transmission medium
used by INTERNETWORKING that enables CSI to read and process INTERNETWORKING's
data as detailed in the Schedules and any attachments thereto.

5.   SERVICES PRICING AND INVOICING

     (a)  Pricing for CSI Services is set out in Schedule G, Services Pricing.
Such pricing does not include applicable sales, use or similar taxes, which
shall be added to the amount invoiced.

     (b)  In addition to the provisions set forth in the Transition Services
Agreement, INTERNETWORKING agrees to pay the full invoiced amount represented on
each invoice, or in the event that an amount is in dispute, submit a written
request for review of the disputed portion of the invoice by the payment due
date of the invoice. If INTERNETWORKING fails to pay or submit a request for
review of a disputed billing procedure, as provided herein, by the payment due
date, CSI reserves the right to charge interest at a rate of 1 1/2 % per month
or at the highest allowable statutory rate. In the event of a dispute concerning
an invoice received by INTERNETWORKING, INTERNETWORKING shall promptly notify
CSI in writing of the disputed item(s) with a description of the dispute on or
before the due date of the invoice. CSI shall respond within 20 days of receipt
of such dispute. If the dispute cannot be resolved by the parties within 30 days
thereafter, the parties will resort to the dispute resolution procedures set
forth in the Transition Services Agreement.

     (c)  In addition to the provisions for expense reimbursement set forth in
the Transition Services Agreement, INTERNETWORKING shall reimburse CSI for all
reasonable expenses approved by INTERNETWORKING, incurred on INTERNETWORKING's
behalf for the purposes of providing the Services ("Expenses"). There shall be
no mark-up for invoiced Expenses. CSI shall invoice INTERNETWORKING for Expenses
as they accrue monthly.

     (d)  The parties shall negotiate pricing within 120 days of the anniversary
of this SOW as set out in Section 6 (b) Term with new pricing to be effective on
the anniversary date of this SOW. However, CSI reserves the right to increase
its rates and charges at any time during the term or any renewal term to include
increases in costs as the result of changes in Applicable Law, regulation, or
postal rates, or other similar circumstances beyond CSI's control, related to
CSI's provision of Services, whether recurring or non-recurring, upon thirty
(30) days written notice to INTERNETWORKING.

                                       3
<PAGE>

Upon INTERNETWORKING's termination of this SOW, for convenience before the end
of the initial term, as provided in Section 6, prior to the end of the term,
INTERNETWORKING will reimburse CSI, its parent or affiliate, as the case may be,
for all INTERNETWORKING-approved, third party costs for equipment or software
which have been incurred by CSI after the execution of this SOW as a direct
result of CSI's provision of Services under this Agreement or any Statement of
Work, provided that INTERNETWORKING shall be entitled to any right, license or
title related to any such equipment or software to the extent CSI has the legal
authority to convey such right, license or title. In addition, in the event
INTERNETWORKING terminates this SOW for convenience during the term or any
renewal term, INTERNETWORKING will reimburse CSI for $8 million of the $16
million license fee paid by CSI, its parent or affiliated company, as the case
may be, for the Kenan-Arbor Software License.

6.   TERM.

     (a)  This SOW is effective as of the Effective Date of the Transition
Services Agreement and shall continue in full force and effect for an initial
term ("Initial Term") of one (1) year and may be renewed at INTERNETWORKING's
option for two renewal terms of one year (each a "Renewal Term"), in accordance
with the procedures set out in subsection (b), below. Following the second
Renewal Term, the SOW may be renewed at the mutual agreement of the parties.

     (b)  In the event that INTERNETWORKING wishes to negotiate to renew this
SOW as set out in subsection (a), above, INTERNETWORKING will provide CSI with
notice of its intent to negotiate a Renewal Term and a forecast for such Renewal
Term ("Renewal Forecast") no later than one-hundred and twenty (120) days prior
to the end of the Initial Term or Renwal Term, as applicable. CSI will respond
to the Renewal Forecast with a pricing proposal within (30) thirty days of
receipt of the Renewal Forecast and INTERNETWORKING will notify CSI of
INTERNETWORKING's decision regarding it decision to enter into a Renewal Term
within thirty (30) days from the date INTERNETWORKING receives pricing from CSI.
If INTERNETWORKING fails to notify CSI of its intent to renew, by such renewal
notice date, the SOW will expire at the end of the then-current Term. In the
event that INTERNETWORKING does not wish to enter into a Renewal Term, the
parties shall mutually agree upon a reasonable period to wind down the Services
hereunder and allow for INTERNETWORKING to transfer to another service provider;
such period not to exceed 180 days post expiration. The parties shall proceed in
the post expiration period at the proposed pricing rates.

     (c)  Termination without Cause. Either party may terminate this Statement
          -------------------------
 of Work without cause upon a minimum of one hundred and eighty (180) days
 written notice to terminate. The parties agree that this notice period is
 longer than the 120 day termination provision set out in the basic Agreement,
 and agree to the longer period in order to accommodate INTERNETWORKING's
 minimum requirements in transitioning to another service provider or another
 billing and collection mechanism.

                                       4
<PAGE>

 Upon receipt of notice of termination, the parties shall meet to determine a
 plan for transition and termination, the termination date shall not be longer
 than one year from the date the non-terminating party receives such notice of
 termination.

     (d)  Termination for Cause. INTERNETWORKING may terminate this Statement of
          ---------------------
Work for cause, upon written notice and with an opportunity to cure pursuant to
the Transition Services Agreement, due to CSI's material failure to administer
INTERNETWORKING's established policies and procedures (which have been given to
CSI in writing prior to such alleged failure). For purposes of this agreement,
"material failure" is defined as the occurrence of either: (i) three (3) or more
breaches of separate policies or procedures within a twelve (12) month rolling
period or (ii) two (2) or more breaches of the same policy or procedure within a
rolling twelve (12) month period.

     (e)  In addition to the foregoing, this SOW may be terminated by:  (i)
mutual agreement of the parties or (ii) in the event of termination of the
Transition Services Agreement, this SOW will terminate simultaneously therewith.

7.   CSI ON- SITE PERSONNEL.

     (a)  CSI shall provide on-site personnel at specifically designated
INTERNETWORKING location(s) to support INTERNETWORKING's requirements as
mutually agreed by the parties. All such on-site personnel will work under the
direction and control of CSI.

     (b)  CSI shall be responsible for all timekeeping, payroll, applicable
benefits (if any), workers compensation, insurance, employment and other related
taxes, documentation and related administrative duties or other requirements
with respect to the CSI on-site personnel.

     (c)  CSI shall require all employees or subcontractors located on-site at
INTERNETWORKING's location(s) to comply with the published rules, regulations
and policies of INTERNETWORKING which shall be provided to all on-site employees
at the time the on-site employee is assigned to an INTERNETWORKING location(s).

     (d)  CSI and the on-site personnel shall treat and maintain all information
obtained at INTERNETWORKING's location(s) as Confidential Information as set
forth in the Transition Services Agreement.

     (e)  In the event that INTERNETWORKING requires on-site personnel,
INTERNETWORKING will provide adequate office space and accommodations to support
such on-site personnel. The term "adequate office space and accommodations"
means that INTERNETWORKING shall provide, including but not be limited to,
office space specifically designated for CSI employees in or near

                                       5
<PAGE>

INTERNETWORKING's offices equipped with computers, telecommunications, e-mail,
internet access, ordinary and customary office furniture and equipment and mail
and janitorial services.

     (f)  In the event that INTERNETWORKING requires the office relocation of
any on-site personnel provided by CSI, INTERNETWORKING will reimburse CSI for
all business-related costs incurred by CSI associated with relocation of CSI
personnel as set forth herein. 8. ACCESS NEEDS OF PARTIES AND CONFIDENTIALITY
PROTECTIONS FOR PERSONNEL ON SITE TO EITHER PARTY.

In addition to the provisions set forth in the Transition Services Agreement,
each party shall permit reasonable access during normal working hours to its
facilities and systems that are used in connection with the performance of
Services. On-site personnel shall be given security authorization for limited
access to INTERNETWORKING's facilities for the purpose of performing the
Services. For all other types of access by non on-site personnel, reasonable
prior notice shall be given when access is required.

9.   FORECASTING

In order to permit CSI to plan for and implement the Services, INTERNETWORKING
shall provide CSI with quarterly forecasts of billing volumes for each fiscal
quarter during the term hereof. Each quarterly forecast must be submitted to CSI
no later than 60 days prior to the end of the preceding quarter and such
forecast shall provide:

         (1) volume of gross billing (in dollars),

         (2) percentage increase or decrease in volume of amounts billed,

         (3) billing volume for new customers and estimated dollar value.

         (4) Number of Customers- Broken out into classifications: Total, New
             and Incremental (increase or decrease)

         (5) Number of Usage Records (for usage products) per month, per
             product; date expected to be made available to billing; requested
             in-service date

         (6) Number of Non-Usage Billing Events: NRC's and MRC's per month, per
             product; date expected to be made available to billing; requested
             in-service date

         (7) Volume of Individual Customer Basis contracts

         (8) Activation time required for new customer or new products to
             introduced in the applicable quarter and the effective date for the
             following:
               (i)   new products
               (ii)  new customers
               (iii) new pricing
               (iv) bundled services and/or pricing

                                       6
<PAGE>

               (9) Requirements for development of new billing capabilities or
                   changes to existing capabilities pursuant to Schedule D,
                   Change Request Procedures.

          The parties acknowledge that material changes to billing events
          processed by the CSI system, including but not limited to,
          introduction of new products, the addition of a significant number of
          new customers, significant deviations from forecasted volumes or
          significant increases in billing volumes, or delays from forecasted
          dates in launching new products may lead to limitations on CSI's
          ability to provide the Services. In order to provide CSI with the best
          available information concerning INTERNETWORKING's projected volumes
          and changes that have an impact on CSI's provision of the Services
          described in this SOW, the parties shall meet quarterly to review
          INTERNETWORKING's forecast for the next quarter to determine the
          requirements of each party in order for CSI to provide the level of
          Services required by this SOW.

     10.  CHANGE CONTROL.

          (a)  All requests for changes to or addition of Services for new
     products, new customers, termination of customers, significant
     increases/decreases to numbers of bills or other changes regarding the
     Services must be made in accordance with the Change Request Procedures set
     forth at Schedule D.

          (b)  In addition, INTERNETWORKING shall communicate all IT
     requirements, changes, clarification, question or requests of any nature
     regarding the CSI system directly to CSI personnel or management. In no
     event shall INTERNETWORKING communicate directly with any affiliates or
     subcontractors of CSI regarding such requests or other components or
     services rendered pursuant to this SOW without the written consent of CSI.

     11.  TAXES.

(a)  CSI shall provide the tax services described in Schedule H, Tax Services.
     INTERNETWORKING shall be liable for all applicable sales, use or similar
     taxes for amounts invoiced to INTERNETWORKING's customers and
     INTERNETWORKING shall be responsible for preparation and filing of all tax
     returns and applicable tax reporting to all taxing jurisdictions. Taxes
     shall be added to each customer's invoice, however, CSI shall not be liable
     for miscalculation or omissions with regard to such taxes.

                                       7
<PAGE>

12.  MODIFICATION

This SOW or any Schedule attached hereto may only be modified or amended by an
instrument in writing signed by duly authorized representatives of the parties
pursuant to the terms of the Transition Services Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this SOW through their
authorized representatives.

GTE Consolidated Services Incorporated  Genuity Inc.

By:_____________________________        By:_____________________________

Name:___________________________        Name:___________________________

Title:__________________________        Title:__________________________

Date:___________________________        Date:___________________________

                                       8
<PAGE>

                                  Schedule A
                        Description of Billing Services

The scope of the Services set forth herein may be modified by mutual agreement,
but all modifications must be in writing, signed by both parties. CSI shall
perform no services outside the scope of the Services as defined in writing in
this Schedule A. No changes to the scope of work shall be permitted unless set
forth in writing executed by an authorized manager of each party (for purposes
of authorization, e-mail will not be considered a "writing").

Under this SOW, CSI agrees to provide to INTERNETWORKING the following
functions, which collectively are defined as Billing Services:
 .    Data Accumulation
 .    Bill Processing
 .    Bill Format and Distribution
 .    Inquiry & Investigation
 .    Credit Verification
 .    Collections Administration
 .    Payment Processing
 .    Administration of Billing Capability
The following sections describe each of these functions and the roles and
responsibilities of CSI and INTERNETWORKING in fulfilling these functions.

Section 1.0 - Data Accumulation

1.0    Data accumulation consists of the validation and correction (as agreed
upon) of usage based billing events, trending, guiding of usage based events to
a customer account, provisioning of unrated and/or rated call detail files as
agreed upon and preparing usage based events for bill calculation process. Such
events may be voice, data, database lookups and value added services. Events can
be recorded by INTERNETWORKING'S network or received from an external company.

1.1    CSI will:

1.1.1  Validate and manage usage based billing events on a timely basis (daily),
       from mediation to billing, and process those records for billing in
       accordance with the business rules defined by INTERNETWORKING. In
       situations where INTERNETWORKING performs the collection and mediation
       processes, CSI will accept only those records which are in the standards
       and format defined by CSI.

1.1.2  Provide balancing and control procedures to assure all usage based
       billing events provided by INTERNETWORKING are processed and distributed
       to the billing systems in an accurate and timely manner.

                                       1
<PAGE>

1.1.3  Investigate all events in error and return to INTERNETWORKING for review
       and disposition any errors that CSI cannot correct.

1.1.4  Perform trending on billing events and provide reporting to
       INTERNETWORKING for their analysis of customer behavior and impact on
       revenues

1.1.5  Provide monthly reports to INTERNETWORKING on the volume of usage based
       billing events processed, volume of events determined to be unbillable
       due to errors, and root cause analysis of event processing errors.

1.2  INTERNETWORKING will:

1.2.1  Provide to CSI scheduled usage based event transmissions in the format
       and standards as mutually agreed to by the parties.

1.2.2  Provide to CSI usage based event transmission balancing and control
       information in the format and standards as mutually agreed to by the
       parties.

1.2.3  Notify CSI of any delays in scheduled transmissions and will not hold CSI
       responsible for any missed cycle cutoffs due to delays caused by
       INTERNETWORKING.

1.2.4  Notify CSI of usage rate changes in a timely manner and will not hold CSI
       responsible for any missed rate change update due to delays caused by
       INTERNETWORKING. Rate changes and any new usage based events to be billed
       will be communicated to CSI as outlined in Schedule D- Change Request
       Procedures

Section 2.0 - Bill Processing

2.0  Bill Processing consists of the creation of formatted billable data for all
     customers at bill now time. This process includes the retrieval of all
     usage-based events, customer specific product and services information,
     recurring and non-recurring charges, adjustments to customer accounts and
     payment data.

2.1    CSI will:

2.1.1  Maintain billing schedules in accordance with INTERNETWORKING business
       requirements. Billing schedules will be prepared on a monthly basis and
       approved by INTERNETWORKING and CSI. Any changes in final mail dates to
       customers will be mutually agreed on by both parties.

                                       2
<PAGE>

2.1.2  Calculate all federal, state, and local sales, use, excise, gross
       receipts, and other taxes and tax-like charges imposed on
       INTERNETWORKING's services in accordance with the tax application
       guidelines provided by INTERNETWORKING.

2.1.3  Develop and maintain the billing process for INTERNETWORKING's pricing
       and discounting plans for products and services offered by
       INTERNETWORKING.

2.1.4  Perform quality assurance reviews of billing system outputs to verify the
       accuracy of billing and take the required action to correct billing
       exceptions identified.

2.1.5  Maintain financial and journalization tables to ensure the accurate
       transmission of billing data to INTERNETWORKING's Financial Reporting
       system, SAP.

2.1.6  Maintain billing data files for the period of time consistent with
       applicable law and INTERNETWORKING business requirements.

2.1.7  Provide security controls for usage based event and billing data to
       assure only those organizations/individuals authorized by INTERNETWORKING
       have access to such data.

2.2    INTERNETWORKING will:

2.2.1  Provide to CSI information regarding new pricing and discount plans or
       changes to existing pricing and discount plans as outlined in Schedule D-
       Change Request Procedures.

2.2.2  Provide direction and business requirements to CSI regarding the
       application and billing of Taxes, including, without limitation,
       implementation of the following:

          2.2.2.1 Procedures or information relating to taxes that are
          applicable to INTERNETWORKING products and services for all taxing
          jurisdictions.

          2.2.2.2 Procedures or information arising from changes to Applicable
          Law relating to Taxes.

          2.2.2.3 Procedures or information relating to Taxes on new products
          and services offered by INTERNETWORKING.

          2.2.2.4 Procedures or information relating to Tax surcharges.

                                       3
<PAGE>

          2.2.2.5 Procedures or information relating to the tax status of a
          particular customer.

2.2.3  Provide CSI with INTERNETWORKING's requirements related to the
       information flow from the billing system as applicable to journalization
       of revenues, cash, accounts receivable and uncollectible activity
       processed by CSI's billing systems.

2.2.4  Provide CSI customer sales, order entry, and provisioning data on a daily
       schedule as input to the billing function performed by CSI. These updates
       shall include for new INTERNETWORKING customers, all account information
       necessary to establish an account on the billing system customer account
       database. For existing customers, these updates shall include all changes
       to the account and the effective date of the change.

2.2.5  Provide to CSI such access to INTERNETWORKING sales, order entry,
       provisioning and financial systems that are required in order to supply
       the billing system with appropriate customer or product related data
       required by CSI in the preparation of a customer bill.

2.2.6  Provide for CSI maintenance and training on INTERNETWORKING systems that
       require access by CSI employees.

2.2.7  Provide to CSI an initial list of INTERNETWORKING employees authorized by
       INTERNETWORKING to access and review customer data and product/service
       data from CSI's billing systems. Updates to this list will be
       communicated to CSI on no less than a monthly basis and immediately upon
       the termination of any previously authorized employee.

2.2.8  Provide to CSI on no less than a monthly basis, a report of known or
       suspected billing issues detected by INTERNETWORKING from any source,
       including but not limited to customer feedback or inquiries and analysis
       of financial reporting data.

Section 3.0 - Bill Format and Distribution:

3.0    Bill Format and Distribution consists of the processes used to support
       the production of the bill in the format and on the media defined by
       INTERNETWORKING business requirements and the distribution of the bill
       and any supplemental information to the customer.

       3.1  CSI will:

                                       4
<PAGE>

3.1.1  Maintain and support bill presentation formats in paper media. Support
       for invoice preparation on alternative media (CD-ROM, diskette,
       electronic) will be evaluated through the Change Request Procedures based
       on INTERNETWORKING's business requirements, See Schedule D.

3.1.2  Provide balancing and control processes to assure all print files are
       received, processed and distributed in accordance with established Bill
       Processing schedules.

3.1.3  Manage the investigation and corrective action associated with any
       files/documents that are not successfully transmitted and printed.

3.1.4  Burst, fold, insert, apply postage and mail all customer bills in
       accordance with Bill Processing schedules.

Administer the recovery of mutilated bills utilizing CSI's standard bill reprint
process.

3.1.5  Provide to INTERNETWORKING a confirmation of the total documents mailed
       by cycle, by entity for each processing date.

3.1.6  Provide for the preparation and distribution of supplemental information,
       primarily call detail reporting, in paper and electronic media. Support
       for supplemental detail information on alternative media, including CD-
       ROM and diskette will be evaluated through the Change Request Procedures
       set forth in Schedule D based on INTERNETWORKING's business requirements.

3.1.7  Perform inventory control and ordering of forms for INTERNETWORKING bills
       and envelopes to assure proper stock levels.

3.1.8  Adhere to required USPS regulations and will manage the distribution
       process to assure the most favorable postage rates to INTERNETWORKING.

3.1.9  Support the mailing of promotional and informational material (commonly
       referred to as bill inserts) in INTERNETWORKING's bill mailings or
       through direct mailing to selected customers.

INTERNETWORKING will:

3.2.1  Notify CSI of any changes to paper stock or envelopes 75 days in advance
       to allow for lead-time and restocking.

                                       5
<PAGE>

3.2.2  Provide sample inserts to CSI for testing at least 5 business days prior
       to designated bill dates.

3.2.3  Define business requirements and provide test data for any new bill
       formats or media that INTERNETWORKING deems necessary to meet business or
       customer demands. INTERNETWORKING will follow the guidelines in Schedule
       D-Change Request Procedures, when requesting a change by CSI.

Section 4.0 - Inquiry and Investigation

4.0    Inquiry and Investigation consists of those processes necessary to answer
       and resolve questions received from INTERNETWORKING's customers regarding
       their bill or billing services, such as questions concerning receipt of
       payment, request for duplicate bill copy, change of address, an
       explanation of the bill or referral of a billing issue from an
       INTERNETWORKING employee. An inquiry may be received by phone, automated
       attendant, voice mail, facsimile, or electronic means.

       4.1  CSI will, pursuant to INTERNETWORKING's policies, procedures and at
            INTERNETWORKING's direction:

4.1.1  Support customer billing inquiry and adjustment functions as defined by
       INTERNETWORKING, including providing Customer Billing Inquiry
       Representatives to answer direct calls from INTERNETWORKING customers on
       matters related to the customer bill.

4.1.2  Provide Customer Billing Inquiry Representative and management support
       staffing for those hours of service currently defined as 8:00 AM to 5:00
       PM Eastern and Central standard time.

4.1.3  Provide the necessary training and monitoring of employee performance to
       assure that employees are performing in accordance with INTERNETWORKING
       business policies.

4.1.4  Manage and perform billing-related problem investigation, resolution and
       tracking for customer reported billing issues that cannot be handled
       during the customer bill inquiry process. CSI will take the required
       actions to correct problems within the billing processes and billing
       systems. If the issue investigation process determines the problem is a
       result of errors in systems or processes managed by INTERNETWORKING, CSI
       will inform INTERNETWORKING and will assist INTERNETWORKING as requested
       through the resolution process.

                                       6
<PAGE>

4.1.5  Perform root cause analysis of bill inquiry calls to determine
       appropriate level of resolution within the billing process to minimize
       recurring customer impact and to reduce subsequent calls.

4.1.6  Provide to INTERNETWORKING monthly reports of compliance to performance
       standards and service levels and of root cause analysis of inquiry calls.

4.2    INTERNETWORKING will:

4.3    Provide necessary telecommunications support and network integration to
       meet service level standards and provide ongoing support of all 800
       numbers assigned for customer inquiry.

4.2.1  Provide to CSI copies of all information necessary for CSI to train its
       Customer Inquiry representatives and supervisory staff to answer customer
       questions regarding information contained on their bill. This information
       will include, but is not limited to: product and service descriptions,
       availability of products and services, rate and pricing schedules,
       promotional terms and conditions, and any customer specific contracts
       and/or terms and conditions. Information should be received by CSI no
       later than 15 days prior to the change being effective.

4.2.2  Provide to CSI business policies outlining its customer services
       standards including, but not limited to the amount a CSI Customer Inquiry
       representative may adjust from a customer's bill, supervisory approval
       levels for adjustment activity, and escalation procedures for when a
       customer should be referred to an INTERNETWORKING representative/officer
       for problem resolution.

4.2.3  Provide CSI personnel with access to any non-billing systems that are
       necessary for the investigation and resolution of billing related
       questions. These systems include but are not limited to sales/order entry
       systems, pending order activity, provisioning, trouble reporting systems.
       INTERNETWORKING will provide the ongoing maintenance and support of these
       systems, including the cost of access to and processing of transactions
       generated by CSI personnel on behalf of INTERNETWORKING customers.

4.2.4  Commit to make the necessary changes in it's supporting systems for
       errors that are causing errors in the billing system. All costs to
       correct these systems will be borne by INTERNETWORKING. INTERNETWORKING
       will also bear the costs of correcting problems in CSI maintained billing
       systems.

                                       7
<PAGE>

Section 5.0 - Credit Verification

5.0    Credit Verification consists of those administrative functions necessary
       to perform credit checks to determine credit worthiness of new
       INTERNETWORKING customers, in accordance with standards established by
       INTERNETWORKING, and to communicate the results of these findings to
       INTERNETWORKING management for further actions.

5.1    CSI will, pursuant to INTERNETWORKING's policies, procedures and at
INTERNETWORKING's direction:

5.1.1  Determine credit worthiness of new customers in accordance with standards
       established by INTERNETWORKING.

5.1.2  Determine credit worthiness of current INTERNETWORKING customers who add
       new products and services over their approved credit limit, in accordance
       with standards established by INTERNETWORKING.

5.1.3  Notify INTERNETWORKING sales personnel when the credit verification
       process determines a deposit may be required from a customer prior to the
       establishment of service.

5.1.4  Refer to INTERNETWORKING management reports of customers who do not pass
       credit checks and the reasons for denial under the standards established
       by INTERNETWORKING.

5.1.5  Maintain contracts with major credit reporting bureaus, both domestic and
       international, that are required in order to fulfill the credit
       verification described above.

5.2    INTERNETWORKING will define credit worthiness standards for new and
       current customers wishing to add services. Any changes to these policies
       will be communicated to CSI no later than 15 days prior to their
       effective date to allow for changes to operating procedures and system
       parameters.

Section 6.0 - Collections Administration

6.0    Collections administration consists of those functions necessary to
       support the risk management policies established by INTERNETWORKING and
       to assist

                                       8
<PAGE>

       INTERNETWORKING in minimizing the loss of INTERNETWORKING billed
       revenues.

6.1    CSI will:

6.1.1  For accounts that are in a delinquent status as defined by
       INTERNETWORKING business policies, perform collection activities
       including sending collection letters to customers, resolving billing
       disputes and contacting customers in an attempt to collect.

6.1.2  In accordance with INTERNETWORKING business policies CSI will notify
       INTERNETWORKING management when a customer'saccount reaches the
       thresholds established by INTERNETWORKING for unacceptable balances or
       delinquent payment, . Upon direction from INTERNETWORKING management, CSI
       will return the customer account to INTERNETWORKING for disposition or
       refer the debt to an outside collection agency.

6.1.3  Provide monthly, a report of accounts receivable aging, average
       collection period and amount of uncollectible write-offs and recoveries
       for the period.

6.1.4  Refer any accounts that are identified during the collections process as
       being in bankruptcy, receivership, probate, etc. to INTERNETWORKING's
       Legal department for further action. CSI will write off these accounts as
       directed by INTERNETWORKING.

6.2    INTERNETWORKING will:

6.2.1  Define policies for the treatment and collection of delinquent accounts.
       Any changes to these policies will be communicated to CSI no later than
       15 days prior to their effective date to allow for changes to operating
       procedures and system parameters.

Section 7.0 - Payment Processing

7.0    Payment Processing includes those activities necessary to post/update
payment activity to customer accounts, deposit funds, as required, in
INTERNETWORKING bank accounts, research and resolve any payment posting errors
and process returned items from banks or other financial institutions

                                       9
<PAGE>

7.1    CSI will:

7.1.1  Process on a daily basis any customer payments received by CSI. This
       processing will include the allocation of payment data to the appropriate
       customer account and the transmission of payment data to the applicable
       customer account database.

7.1.2  Perform balancing and control processes to ensure all payment data
       transmitted to the billing systems are accepted and processed. CSI will
       be responsible for resolving all out of balance conditions.

7.1.3  Deposit, on a daily basis, any funds it receives in the designated
       INTERNETWORKING bank accounts. CSI will provide to INTERNETWORKING,
       monthly reports of bank deposit activity.

7.1.4  Investigate and make any required adjustments to a customer's account as
       the result of payment processing errors or as a result of returned items
       from banks or other financial institutions.

7.1.5  Perform balancing and control processes to ensure all payment data
       transmitted from external parties are accepted and processed to the CSI
       billing systems. External parties may include a lockbox processor, a
       credit card processor, electronic funds transfer or electronic data
       interexchange. CSI will manage the resolution of any out of balance
       conditions.

7.2    INTERNETWORKING will be responsible for defining performance standards,
negotiating pricing, and managing the relationships between its lock box and
credit card providers. Fees for these services will be directly billed from the
providers to INTERNETWORKING.

Section 8.0 - Administration of Billing Capabilities

8.0    The administration of billing capabilities includes those activities
necessary to assure the billing systems used by CSI to bill INTERNETWORKING
customer's are maintained and supported to assure that billings reflect the
correct rates, terms, prices and conditions for INTERNETWORKING's products and
services

8.1    CSI will, in accordance with INTERNETWORKING's policies, procedures and
at INTERNETWORKING's direction:

8.1.1  Administer, develop and implement changes to its billing systems in
support of objectives established by INTERNETWORKING for billing its customers,
including

                                      10
<PAGE>

development of billing functionality to support new products and services as
identified by INTERNETWORKING.

8.1.3  Provide assessment of current and new billing capabilities and identify
       alternative billing solutions to meet INTERNETWORKING's billing
requirements.

8.1.4  Administer and update billing system tables and business rules with
       product and service changes requested by INTERNETWORKING as outline in
       Schedule D -Change Request Procedures.

8.1.5  Perform user acceptance testing on behalf on INTERNETWORKING to ensure
       system and/or table driven changes accurately reflect the intended
       changes to INTERNETWORKING products and services and that such changes do
       not adversely impact billing production. CSI will manage the resolution
       of error conditions noted through testing.

8.1.6  Control, resolve and eliminate the cause of problems that occur due to
       CSI caused errors in billing systems or processes.

8.1.7  Refer to INTERNETWORKING for investigation and resolution, errors
       detected in the billing process that are due to systems or processes
       performed or maintained by INTERNETWORKING, e.g. ordering and
       provisioning errors.

8.1.8  INTERNETWORKING and CSI agree to provide the necessary systems interfaces
       and connections for the transfer of customer account, product and
       service, billing and financial data between CSI maintained billing
       systems and INTERNETWORKING maintained systems including, but are not
       limited to sales/order entry systems, pending order activity,
       provisioning, trouble reporting systems.

8.2    INTERNETWORKING will:

8.2.1  Define changes to existing products and services and requirements for new
       products and services in accordance with Change Request Procedures
       outlined in Schedule D, including the definition of business requirements
       and testing data.

8.2.2  Provide subject matter experts to answer questions and define test
       scenarios.

                                      11

<PAGE>

                                  Schedule B
                     Billing Services Performance Measures

CSI and GENUITY agree to jointly define and establish a detailed action plan to
develop metrics that measure the effectiveness of the overall billing process
and compliance with the Billing Services business policies and procedures
established by GENUITY ("Action Plan") within sixty (60) days following the
effective date of this agreement. The Action Plan, will provide a mechanism to
establish guidelines ("Guidelines")based on performance metrics agreed upon by
the parties in accordance with the SOW and Transition Agreement. The Guidelines
will become effective upon the effective date of the renewal term, if any.
Included in the operating metrics will be measurements associated with the
services performed by CSI, as described in Schedule A-Description of Services,
as well as measures associated with the functions performed by GENUITY which are
an integral part of the total billing process, including but not limited to
usage polling and collection and provisioning timeliness.

Operating and compliance metrics will be defined and established relating to
billing timeliness and accuracy and credit and collections performance. CSI and
GENUITY agree to use the initial term of this agreement to establish threshold
levels of performance by CSI related to the metrics identified, and to establish
remedies to address CSI's inability to meet such performance levels in future
terms. The parties agree that assessment of actual performance against agreed
upon threshold levels, as well as implementation of the foregoing remedy
structure will begin in the renewal term, if any, of this agreement.

The Metrics established will be in substantially the form attached hereto.
Performance will be measured on a monthly basis, from the 1/st/ through the
31/st/. Metrics will exclude any jointly agreed upon holidays during which the
defined billing services may not be performed. Any variance from these
performance measures will be described in writing with actions identified to
bring performance to the agreed upon level.

                                       1
<PAGE>

                                  Schedule C
                    Products and Services Currently Billed
                          by CSI on Behalf of GENUITY

The following list represents those products and services that are currently
billed by CSI on behalf of GENUITY.  CSI has established system and process
capabilities that support the billing for these products and services.

Any new products and services or any modifications to the billing for the
products and services outlined below will require changes to the current billing
systems and processes used by CSI.  For any new products and services or
modifications, GENUITY will submit a request for change to CSI in accordance
with Schedule D, Change Request Procedures.  CSI will evaluate the requested
change and provide to GENUITY a written estimate of the cost and timeframes
associated with the change as outlined in Schedule D.

Products Billed:
@Vault                                  Web Advantage
ADSL                                    Web Hosting
ATM PVC
BizConnect
Custom Hosting
Dialinx
Digital Subscriber
Ecache
Frame Relay
GNI Colocation
International ISP
Internet Advantage
Internet Advantage International
Internet Call Manager
Internet Server
IP Fax
ISP Direct
Managed Messaging
Private Line
Security Advantage
Site Patrol
Site Patrol International
Unified Messaging
Virtual Internet Service
Virtual Private Network
Voice Over IP
VPN International

                                    Page 1
<PAGE>

                                  Schedule D
                           Change Request Procedures

1.0    Change request procedures to modify CSI's billing system or subprocess
   support systems are initiated through a written Change Request  (CR).

2.0    A high level estimate of the Time and Cost (T&C) for changes the CSI
   systems or processes (order of magnitude) may be requested through the CHANGE
   REQUEST process. An order of magnitude may also be requested at the early
   stages of product or service development (INTERNETWORKING's PDMM or PD&L
   processes) to project anticipated costs and roll-out schedules. Order of
   magnitude estimates are not binding and will be estimated at CSI's
   discretion. Should INTERNETWORKING wish to pursue implementation of the
   change proposed in the order of magnitude, INTERNETWORKING shall issue a
   formal request for a T&C estimate as outlined in Section 3.0.

3.0INTERNETWORKING may request a T&C estimate by submitting a T&C CHANGE REQUEST
   form to CSI's Change Control Manager. CSI will normally respond to
   INTERNETWORKING's request for an estimate within five (5) Business Days of
   receipt for table changes, ten (10) Business Days for pricing or contract
   changes and thirty (30) Business Days for new development. CSI's response
   will include the cost for development and implementation activities, an
   estimate of any new recurring charges, the implementation date, and all
   assumptions and/or deviations from INTERNETWORKING's specifications. This
   shall be a binding commitment from CSI to deliver the requested functionality
   at the stated price and on the stated date except as noted in Section 11.0 of
   this Attachment. For complex requests for new development a detailed break-
   out of the cost by functionality may be requested by INTERNETWORKING.

       3.1  All T&C CHANGE REQUEST responses shall include a listing of any new
            or increased recurring billing functional or data processing charges
            that shall apply. All recurring charges will require written
            authorization by INTERNETWORKING prior to development and
            implementation of the T&C CHANGE REQUEST.

       3.2  In the event this information is unavailable on the day the T&C
            CHANGE REQUEST quote is rendered to INTERNETWORKING, CSI will state
            in the quote that the recurring rate will be provided at a later
            date or a date to be negotiated between the Parties.

       3.3  If a request is considered by CSI to be too complex to meet the
            specified time requirement, or the information contained in the
            request is deemed insufficient, CSI shall notify INTERNETWORKING
            within
<PAGE>

          fifteen (15) Business Days of receipt of original request and
          the Parties shall negotiate a new response date for CSI's T&C CHANGE
          REQUEST quote.

     3.4  Upon agreement on the cost and implementation dates, the originator of
          the T&C CHANGE REQUEST or INTERNETWORKING's executive management will
          issue to CSI a formal authorization, in writing, authorizing the
          entire quote or option selected, if applicable. In the event that such
          authorization is received via e-mail or Internet, INTERNETWORKING
          hereby releases CSI from any and all liability to confirm the
          authenticity of the authorizing party or to otherwise validate the
          authority of the record's originator to authorize CSI to proceed with
          the development work.

4.0 INTERNETWORKING shall respond to CSI's requests for clarification of a
    change request or for requests for additional information in a timely
    manner. During the time period that questions pertaining to pending change
    request are outstanding, the T&C CHANGE REQUEST will be considered on hold
    by CSI. Once all questions are completely satisfied by the Parties, the
    project status will change to "Active/in Progress." Any delays in receipt of
    clarification or additional information requested may impact the delivery
    date of CSI's response and/or implementation date. CSI will advise the
    originator of the order regarding these delays.

5.0 INTERNETWORKING may issue a T&C CHANGE REQUEST to CSI to immediately
    commence work on the project by preauthorizing a portion of the total cost
    of the project.

     5.1  Once the entire quote has been issued by CSI, INTERNETWORKING must
          respond within ten (10) Business Days to authorize CSI to continue and
          complete the project. If full authorization has not been received, CSI
          may cease further project development when the preauthorized funded
          amount has been exhausted.

     5.2  If CSI ceases development of a T&C CHANGE REQUEST due to a delay in
          obtaining INTERNETWORKING's authorization or clarifications, the
          quoted costs and implementation date may be impacted.

6.0 All communications with INTERNETWORKING (written or oral) will be
    coordinated through the originator of the change request. All changes to
    the specifications of the requirement or interpretation of the
    specifications shall be in writing. INTERNETWORKING shall make available to
    CSI for each T&C CHANGE REQUEST an individual knowledgeable in all aspects
    of the

                                       2
<PAGE>

     CHANCE REQUEST with whom the assigned CSI counterpart may discuss project
     design and details in depth.

7.0  INTERNETWORKING shall notify CSI within ten (10) Business Days of the date
     of the T&C CHANGE REQUEST estimate whether the proposed estimate is
     accepted or rejected. The CHANGE REQUEST will be automatically rejected
     upon the expiration of ten (10) Business Days and no further communication
     is required for a rejected estimate. Where INTERNETWORKING is unable to
     meet the ten (10) Business Day requirement, INTERNETWORKING will notify CSI
     and the Parties will agree upon a new date. If INTERNETWORKING fails to
     notify CSI within twenty (20) Business Days of the acceptance or rejection
     of the T&C CHANGE REQUEST estimate, the estimate will be null and void and
     the T&C CHANGE REQUEST shall be considered void and CSI will notify
     INTERNETWORKING in writing of the canceled status.

8.0  INTERNETWORKING has the right to request a reconsideration when the T&C
     CHANGE REQUEST estimate from CSI that does not meet INTERNETWORKING's
     requirements or expectations. INTERNETWORKING shall notify CSI within ten
     (10) Business Days that a reconsideration is necessary. CSI agrees to
     discuss the basis for the estimate with INTERNETWORKING.

9.0  Any new recurring charges must be approved by INTERNETWORKING and by CSI
     and shall be included in the Agreement via a written amendment.

10.0 If INTERNETWORKING cancels an authorized or preauthorized request after
     receipt by CSI, INTERNETWORKING shall compensate CSI for all work completed
     prior to cancellation and for any efforts required to remove system
     functionality from code libraries. Within thirty (30) Business Days
     following notification of cancellation, CSI will send written notice to
     INTERNETWORKING regarding the amount owed by INTERNETWORKING, which shall
     be due upon receipt of such notice by INTERNETWORKING.

11.0 For T&C CHANGE REQUEST changes, unless otherwise agreed, CSI shall complete
     implementation by the agreed upon date stated in the quote. CSI shall use
     reasonable efforts to notify INTERNETWORKING if the scheduled
     implementation date will be in jeopardy. If an agreed upon implementation
     date is missed, CSI shall orally notify INTERNETWORKING as soon as
     possible. CSI shall provide written notification to INTERNETWORKING of its
     new implementation date within five (5) Business Days.

12.0 If following CSI's commitment pursuant to Section 3.0, requested
     functionality is not correctly implemented, by the agreed upon date, and
     has

                                       3
<PAGE>

      affected INTERNETWORKING's Customer's' bills, INTERNETWORKING's sole
      remedy shall be as follows:

12.1  CSI will make credit adjustments to the Customer's bills if required

      If the cause of the incorrect functionality is due to incomplete or
      inaccurate requirements by INTERNETWORKING or from INTERNETWORKING's sign
      off on incomplete or inaccurate requirements or test results, CSI will not
      be held responsible for incorrect bills issued to customers.
      INTERNETWORKING will be responsible for any additional costs necessary for
      correcting the incaccuracies.

13.0  INTERNETWORKING will provide in the initial T&C CHANGE REQUEST user
      acceptance test criteria that will be used by CSI during user acceptance
      testing and will specify if a test bill is required prior to implementing
      the changes. If requested, and provided that INTERNETWORKING has
      authorized or preauthorized development, CSI will use reasonable efforts
      to provide a test bill sample to INTERNETWORKING. INTERNETWORKING agrees
      to validate the accuracy of the requested changes and provide concurrence
      to CSI in writing within five (5) Business Days or prior to the first mail
      date if less than five (5) days. INTERNETWORKING shall hold CSI harmless
      from any liability for billing errors that may result from the requested
      changes.

14.0  INTERNETWORKING will note in the initial T&C CHANGE REQUEST if a post
      implementation bill sample is required.

15.0  CSI shall notify INTERNETWORKING within ten (10) Business Days after
      implementation that all work has been completed or procedures are in
      place.

CSI shall begin to bill INTERNETWORKING at the time the estimate is authorized
and development work has begun. The payment schedule will be based upon work
incurred in a given month. Notwithstanding the foregoing, CSI shall have the
option, based on a credit review of INTERNETWORKING or CSI policies and
procedures, to require prepayment of CHANGE REQUE

                                       4
<PAGE>

                                  Schedule E
                               ARBOR Conversion

At the time of this agreement CSI and INTERNETWORKING are jointly involved in
converting from INTERNETWORKING's Oracle Billing platform to CSI's Kenan ARBOR
billing platform ("Arbor Platform"). INTERNETWORKING AND CSI agree that this
project is of strategic importance to INTERNETWORKING and commit to completion
of this project as outlined in this Schedule E.

Overall funding for this conversion is the responsibility of CSI and the overall
conversion project ("Conversion Project") will be managed by CSI. A detailed
implementation plan exists to migrate INTERNETWORKING current customer base from
Oracle to the Arbor Platform, develop new usage based mediation and rating
processes, and to write the business rules in support of INTERNETWORKING
products and services to be billed by CSI from the ARBOR Platform. The Arbor
Conversion project will go to production in the third quarter 2000 and will be
complete by 12/12/2000 when post Arbor Conversion activities are completed.

The project plan requires INTERNETWORKING resources, cooperation and support to
accomplish the Arbor Conversion and the parties will each contribute personnel
to accomplish the Arbor Conversion ("Conversion Team") Arbor Conversion
activities of the parties will include but are not limited to:

INTERNETWORKING will:

1. work with CSI First Rate team to ensure the various data collectors will pass
   the required usage data to First Rate for mediation to ARBOR.

2. work with the CSI Conversion Team to provide the necessary customer data from
   the Oracle legacy system to be migrated to ARBOR.

3. provide a full time representative to the Conversion Team.

4. will continue to participate on the Conversion Team to ensure that the
   Conversion Team is current on all changes implemented in the interim.

5. INTERNETWORKING Data Control will continue to participate on the Conversion
   Team to ensure all price book changes are communicated to the Conversion
   Team.

                                       1
<PAGE>

CSI will :

1. work with INTERNETWORKING to provide a detailed migration approach and plan
   that encompasses all required tasks to complete the Oracle Financials to
   Arbor conversion as it pertains to usage mediation and billing.

2. work with INTERNETWORKING to model all products within the Arbor 9.1 Billing
   instance to meet the previously defined requirements.

3. work with INTERNETWORKING to develop an end-to-end set of test criteria and
   scripts to perform a comprehensive test of the conversion and ensure billing
   accuracy once conversion occurs.

4. design, develop, and provide all required interfaces to handle usage
   mediation, general ledger, bill distribution, bill formatting, taxing,
   commissions, compensation, data warehouse, reseller billing, payments, and
   collections.

5. continue to work with INTERNETWORKING to develop all processes, teams, and
   practices required to provide the core billing functions of data
   accumulation, bill processing, bill format and distribution, inquiry and
   investigation, credit verification, collections, and payment processing
   evolving out of this conversion.

There may be other activities identified as the Conversion Team moves through
the project. INTERNETWORKING will support these activities as identified.

The Arbor Conversion Project plan calls for the Oracle/bp databases to be
available through 2003, as historical data contained in these databases will not
be converted.  CSI may require access to the Oracle/bp database history for
resolution of billing inquiries and referrals.  INTERNETWORKING agrees to
maintain and support the Oracle/bp historical databases thorough year-end 2003.

CSI will manage the ARBOR Conversion Project per the current schedule and will
engage other resources or affiliates as necessary. Status reporting will
continue as it exists today, as will the Core Team and the Executive Team.
INTERNETWORKING, INTERNETWORKING AND CSI commit to continued executive
representation on these teams.

                                       2
<PAGE>

                                  Schedule F
                       Agreement to Support Continuation
                                      of
                  ATM SVC Usage Based Billing Implementation

At the time of this agreement CSI and INTERNETWORKING are jointly involved in
implementing ATM SVC Usage Based Billing on the Kenan ARBOR billing platform.
INTERNETWORKING AND CSI agree that this project is of strategic importance to
INTERNETWORKING and commit to completion of this project as outlined in this
agreement.

Overall funding for this project is being managed by INTERNETWORKING.
INTERNETWORKING will reimburse CSI for project work performed by CSI or CSI's
subcontractors as defined in the ATM SVC SOW. CSI will as required by
INTERNETWORKING provide support for expenses for which they are requesting
reimbursement.

A project plan exists to develop functional and system requirements, system
designs, new mediation and rating processes and to code, test and put into
production the ATM SVC UBB product on the ARBOR platform in support of
INTERNETWORKING's business requirements. The project will go to production in
the late second or early third quarter 2000 and will be complete by 12/12/2000
when post conversion activities are completed.

The project plan requires INTERNETWORKING and CSI resources and support.
Development project activities identified to date are:

1. INTERNETWORKING will continue to work with the CSI ATM SVC UBB Project Team
   to:
   .  complete the project requirements and designs for the ATM SVC UBB product
   .  cooperate in the design and implementation of business processes to
   provide necessary account, service instance, product, rate change, and error
   correction information
   .  participate in the integration and User Acceptance Testing and to
   participate in the roll out of the ATM SVC UBB product.

2. INTERNETWORKING will work with CSI First Rate team to ensure that the Ascend
   ATM Accounting Server data collectors will pass the necessary usage data to
   First Rate for mediation to ARBOR.

3. INTERNETWORKING will work with the CSI Billing Production Team to provide the
   necessary billing information for input into ARBOR. This information includes
   but is not limited to account, service instance and

                                       1
<PAGE>

   product information for new ATM SVC UBB customers and adds, changes and
   deletions for existing ATM SVC UBB customers.

4. INTERNETWORKING will work with CSI Billing Change Management team to provide
   information on all new ATM SVC UBB products and rate changes.

There may be other activities identified as the Project Team moves through the
project.  INTERNETWORKING will support these activities.

Post conversion activities also require INTERNETWORKING and CSI resources and
support. Post conversion, "in production" activities identified include:

INTERNETWORKING:

1. manage the Ascend Accounting Servers and is responsible for providing CSI
   with ATM SVC usage records on a daily basis.

2. provide CSI with account, service instance and product information for both
   new customers and changes to existing customers ATM SVC services so that the
   information can be input to the ARBOR billing platform.

3. provide CSI with new ATM SVC UBB product updates and rate changes so that the
   information can be input to the ARBOR billing platform.

4. work with CSI to resolve errors involving account information, usage guiding
   errors and rating errors.

CSI will:

1. provide a detailed deployment approach and plan that encompasses all required
   tasks to complete the ATM SVC product rollout as it pertains to usage
   mediation and billing.

2. work with INTERNETWORKING to model all features of the ATM SVC product, and
   proposed account structures within the Arbor Billing system to meet
   INTERNETWORKING requirements.

3. work with INTERNETWORKING to develop and execute an end-to-end set of test
   scripts to perform a comprehensive test of the ATM SVC product.

4. CSI will develop and build rate tables to accommodate the ATM SVC usage
   pricing
   CSI will provide fast path rate changes for ATM SVC as necessary.

                                       2
<PAGE>

There may be other ongoing production activities identified as the Project Team
moves into implementation.  INTERNETWORKING will support these activities.

CSI will manage the ARBOR ATM SVC UBB implementation per the current schedule
and will engage other resources or affiliates as necessary.  Reporting and
participation on ATM PDMM teams will continue as it exists with representation
from INTERNETWORKING and CSI.

                                       3
<PAGE>

                                  Schedule G
                          Billing Services Agreement
                                Services Prices

The following charges for the Services provided under this Agreement are
effective during the Term of the Agreement as specified in Section 5 of the
Agreement. Invoicing will be handled on a monthly basis.

Section 1 - Data Accumulation

1.1  Event Management, Data Accumulation, Usage Processing, Mediation:

     1.1.1   Event Management hourly rate                                 $56.00
             Charge per man hour worked to balance and control
             usage, work errors, resolve billing issues, etc.

     1.1.2   UAT Testing (per month)                                  $ 1,950.00
             Routine UAT testing of the Event Management Platform
             *Subject to change based on new Program Implementations (Change
             Requests)

Section 2 - Bill Processing

2.1  Usage Processing (Arbor Message Processing System), Billing:
     Charge to balance and control Usage, work MIU errors,
     resolve guide file issues, resolve billing usage issues,
     monitor the usage billing schedule and performance, etc.

     2.1.1   Less than 10,000,001 messages per month                  $19,000.00
     2.1.2   Between 10,000,001 and 15,000,000 messages per month     $28,000.00
     2.1.3   Between 15,000,001 and 20,000,000 messages per month     $36,000.00
     2.1.4   Between 20,000,001 and 30,000,000 messages per month     $49,500.00
     2.1.5   Between 30,000,001 and 40,000,000 messages per month     $60,500.00
     2.1.6   Between 40,000,001 and 60,000,000 messages per month     $76,500.00
     2.1.7   Between 60,000,001 and 80,000,000 messages per month     $89,500.00
     2.1.8   Above 80,000,001 per incremental 20M messages per month  $11,000.00

2.2  Process Data:

     2.2.1   Process Data production support (per month)            $192,500.00
             Balancing and controls, Error queue management
             Tracking and correction, Bill review and investigation,
             Order entry.

                                       1
<PAGE>

             Tracking and correction, Bill review and investigation,
             Order entry.
             *Subject to change based on new Program Implementations (Change
             Requests)

Section 3 - Bill Format and Distribution

3.1  Bill Format:

     3.1.1   Format tool support (per month)                          $11,000.00
             Infrastructure support of the format tool:
             -Manage the requirements and/or defects of the Arbor IDesign
             product, which includes working with vendor and business owner.
             -Manage installation of IDesign vendor release/patch installs on
NBO Tampa hardware.
             -Work with IT to implement any Arbor billing system impacts with an
IGEN release.
             -Identify embedded base template impacts resulting from new vendor
release installs.
             -Work with IT on IGEN and IDesign processing and distribution
             requirements for IDesign environments (unit test, UAT, production).
             -Manage the distribution and installation of all format templates.
             -Develop and maintain unit test tools.

     3.1.2   Bill Format changes
                         (Included with Program Implementation Quote)

3.2  Bill Distribution:

     3.2.1   Distribute via Paper - Bill Stock
             Charge for bill stock branded with any logo (digitized)  $.033/page

             Charge for 9x12 remittance envelope branded with:
             One Color Logo                                       $.185/envelope
             Two Color Logo                                       $.218/envelope
             Three Color Logo                                     $.277/envelope

             Charge for 9x12 expansion specialty envelopes (1" and 2") with:
             One or Two Color Logo                                $2.09/envelope
             Three Color Logo                                     $2.31/envelope

             BSS (Oracle platform) Charge for form & envelope      $0.21/invoice

     3.2.2   Distribute via Paper - Postage                          As Incurred
             Rate charged will be actual incurred cost.

                                       2
<PAGE>

             Current (2/00) average number of pages per bill is as follows:
             GNI - 6 pages
             Telecom - 13 pages (mail out 3 copies)
             VOIP - 8-10 pages

     3.2.3   Alternate Media (Electronic, CD-Rom, Diskette)(Pricing available
             upon request)

     3.2.4   Electronic Bill Presentation and Payment (Pricing available upon
             request)

3.3  Bill Distribution - Misc. Charges (Rates are per month per invoice)
     Labor and warehousing costs associated with Bill Distribution
          GNI                                                           $  2.76
          Telecom                                                       $  1.02
          VOIP                                                          $  6.73
          BSS                                                           $  0.34

3.4  Bill Distribution - Additional Services:

     3.4.1     Bill Message Page charge                   Individual case basis

     3.4.2     Bill Insert charge                         Individual case basis

     3.4.3     Direct Mail charge                         Individual case basis

     3.4.4     Marketing Message / Bill Phrase charge     Individual case basis

Section 4 - Inquiry and Investigation

4.1  Administrative - No research required (per contact)                $ 11.25
     Name/Address changes, information requests

4.2  Request for second copy of bill (per contact)                      $  9.25
     Includes costs for bill stock and postage

4.3  Error resolution (per initial contact)                             $210.00
     Charge to investigate complaint, document
     findings and resolve issue (including charge for adjustment)

Section 5 - Credit Verification

5.1  Domestic customer credit agency fee                                $ 27.50
     Charge per customer reviewed to access
     credit history via credit agency reports.

5.2  International customer credit agency fee                           $192.50

                                       3
<PAGE>

<TABLE>
<S>                                                                        <C>
     Charge per customer reviewed to access
     credit history via credit agency reports.

5.3  Customer credit research charge                                       $              290.50
     Charge per customer reviewed to analyze
     credit worthiness and provide recommendation.

Section 6 - Collections Management

6.1  Treatment

     6.1.1    Per account in A/R Aging (31 - 60 days)                      $               48.50

     6.1.2    Per account in A/R Aging (61 - 90 days)                      $               48.50

     6.1.3    Per account in A/R Aging (greater than 90 days)              $               48.50

6.2  Collections

     6.2.1    Per account recovered                                        $               56.00
              Customer's account updated to reflect payment
              (OCA fees will be deducted from gross amount collected)

Section 7 - Payment Processing

7.1  Payment processing costs per invoice processed                        $                4.45
     Charges to post customer payments, reconcile lockbox
     receipts, work LIU errors, perform investigations,
     deposit funds into company official bank accounts.

7.2  Returned check - processing (per item)                                $               25.00
     Customer's account and credit rating updated

Section 8 - Manage Billing Capabilities

8.1  Baseline routine changes (per month)                                  $          189,500.00
     Covers up to 2,200 man hours per month of routine
     requests for changes to GTE's billing system (i.e. table
     changes for pricing updates) and production of routine
     reports required by the business.

8.2  Additional routine changes rate per hour                              $               76.00
     Charge applies for routine requests for changes
     beyond the baseline amount.

8.3  Program Management Consultation rate per hour                         $126.00  (plus travel)
</TABLE>

                                       4
<PAGE>

<TABLE>
<S>                                                                                      <C>
     Charge applies for general consultative activities.

8.4  Program Implementation lump sum charge                                              (Pricing available upon request)
     One-time non-recurring charge for a program implementation
     and / or change request associated with a specific project
     beyond activities defined in this schedule.

Section 9 - IT Costs

9.1  First Rate Continuing Operations (COPS) Maintenance - per hour                      $      85.00

9.2  First Rate Continuing Operations (COPS) Production support
     - per hour                                                                          $      85.00

9.3  First Rate License Fee (per month)                                                  $   4,167.00

9.4  First Rate AM/FM (per month)                                                            3,583.00
     Recovery of hardware costs (i.e. servers)

9.5  Arbor Continuing Operations (COPS) Maintenance - per hour                           $      85.00

9.6  Arbor Continuing Operations (COPS) Production support - per hour                    $      85.00

9.7  Arbor AM/FM (per month)                                                               100,000.00
     Recovery of hardware costs (i.e. servers)

Section 10 - Miscellaneous Charges

10.1 General Consultative - per hour                                                     $     126.00

10.2 Mileage charge                                                                      $       0.33
     General mileage charge for all travel over 25 miles one-way

10.3 Expenses                                                                            As Incurred
     Meals, lodging, etc. associated with travel

10.4 Data Security (per month)                                                           $  12,000.00
     Support and Monitor/Control access to INTERNETWORKING
     and CSI Instances of ARBOR

10.5 Arbor License Fee - CSI costs - (per month)                                         $ 195,500.00

10.6 Arbor License Maintenance Fee first instance (per month)                            $  85,500,00
     Arbor License Maintenance Fee - per additional instance
     (per month                                                                          $  18,300,00
</TABLE>

                                       5
<PAGE>

10.7     Vertex software fee for tax application (per month)         $  4,400.00

10.8     GTE Software license and maintenance fee (per month)        $56,000.000

10.9     Tax Department matrix clean-up, system testing, project driven tasks
         (per hour) $ 60.00

10.10    Tax Department on going support, change control & training (per month)
         $ 600.00

Section 11 - Minimum Monthly Charge

11.1     Minimum monthly charge for service rendered under this Agreement
         $350,000.00

                                       6
<PAGE>

                                  Schedule H
                                 Tax Services

The "GTE" Tax Department will perform the necessary tax research and other
services as required to provide on-going support for "INTERNETWORKING" billing
environment with related tax application matrices, change control, one-time
system testing and training.

I.   Services

Tax Billing Matrix
------------------

Ongoing support includes determining the local, state and federal taxation rates
of new products and services, utilizing the "GTE" tax billing matrix as the
primary source ("Tax Services"). The Tax Billing Matrix will be the long-term
solution as the vehicle used to determine the tax rates of products and
Services. The Tax Billing Matrix will interface with the Arbor Billing System
within the term of the Billing and Collection SOW. The "GTE" Tax Department will
provide updates, changes, and corrections as required to the Tax Billing Matrix.
The interim method of communicating taxation rates of products and services will
be via email between CSI, INTERNETWORKING and GTE Tax Department.

Not included as a part of this Tax Billing Matrix services are: contract
reviews, projects such as nexus requirements, prototype design interaction,
products/services rollout implementation process, etc.

Change Control
--------------

The introduction of new products and services will be incorporated with the
product standardization process with direct interaction from INTERNETWORKING
product managers.

The update of tax rates will continue to be handled by CSI.

System Testing
--------------

System Testing includes auditing tables and functionality requirements for
existing and future INTERNETWORKING companies. In addition, report writing
functionality will be tested as required for tax compliance and other ad-hoc
reports.

II.  PRICING

The Tax Services set forth herein will be provided at $600.00 per month.

                                       1
<PAGE>

System Testing and other project driven tasks will be provided at $60.00 per
hour.

III.  TAX LIABILITY

INTERNETWORKING shall be liable for all applicable sales, use or similar taxes
for amounts invoiced to INTERNETWORKING's customers and INTERNETWORKING shall be
responsible for preparation and filing of all tax returns and applicable tax
reporting to all taxing jurisdictions. Taxes shall be added to each customer's
invoice, however, GTE's Tax Department and/or CSI shall not be liable for
miscalculation or omissions with regard to such taxes.

IV.   TERMINATION

From September 1, 2000 through the end of the Initial Term, upon thirty days
written notice, either party may terminate this Schedule H without liability.

                                       2<PAGE>

                                                                   Exhibit 10.10

                     AGREEMENT FOR IT TRANSITION SERVICES

This Agreement for IT Transition Services is made between GTE Service
Corporation, a New York corporation, with offices at 1255 Corporate Drive,
Irving, Texas 75038 and its affiliates (individually and collectively "GTE") on
one hand, each only with respect to the Services (defined below) it provides,
and Genuity Inc., a Delaware corporation, with offices at 3 Van de Graaff Drive,
Burlington, Massachusetts 01803 ("GENUITY"), and its subsidiaries and successors
in interest, on the other hand.

Whereas, GENUITY and GTE each will procure from the other under this Agreement
information technology services, with the services defined in individual
Statements of Work, and the ownership and rights in intellectual property
deliverables defined in the Statements of Work being apportioned between the
parties, with the term of the Agreement being one year, or as other wise set
forth in a specific Statement of Work, but terminable by the party receiving the
services upon one hundred and twenty (120) days prior notice.

In consideration of the mutual terms and conditions of this Agreement, the
parties agree as follows:

1.   GENERAL.

     (a)  Services. Each of GTE and GENUITY (each a "Service Recipient", as the
          case may be) desires to obtain certain information technology
          transitional services on a non-exclusive basis from the other party
          hereto or one of its affiliate companies (each a "Service Provider",
          as the case may be) under the terms and conditions of this agreement
          and statements of work ("Statements of Work") entered into by the
          parties (this agreement and all attached Statements of Work are
          collectively referred to as the "Agreement"), and Service Provider
          shall provide to Service Recipient such information technology
          transitional services (individually and collectively, "Services"). If
          there is any conflict or inconsistency between the terms and
          conditions of a Statement of Work and the terms and conditions of this
          Agreement (excluding for this purpose the Statements of Work), the
          terms and conditions of the Statement of Work shall control.

     (b)  Statements of Work - Generally. Each of the Statements of Work entered
          into by the parties shall: (i) refer expressly to this Agreement; (ii)
          designate the date as of which the provisions of the Statement of Work
          shall be effective and, if applicable, the term or period of time
          during which

                                       1

<PAGE>

          Service Provider shall perform Services, provide resources or
          otherwise discharge its obligations as specified in the Statement of
          Work if different from the term set out in this Agreement (excluding
          for this purpose the Statement of Work); (iii) describe the Services
          to be performed, Work Product (as defined herein) to be delivered,
          resources to be provided or obligations to be discharged by Service
          Provider pursuant to the Statement of Work; (iv) describe the
          obligations of Service Recipient related to the Statement of Work,
          including any facilities, equipment, personnel and tasks or other
          support to be provided or performed by Service Recipient; (v) specify
          the payments to be made to Service Provider under the Statement of
          Work, or, if applicable, the basis on which such payments shall be
          computed; and (vi) specify any other terms and conditions appropriate
          to the Services to be performed and the obligations of the parties. If
          there is any conflict or inconsistency between the terms and
          conditions of a Statement of Work and the terms and conditions of this
          Agreement (excluding for this purpose the Statement of Work), the
          terms and conditions of the Statement of Work shall control. Service
          Recipient may request services through a letter, email, or other
          written or electronic medium. The request for services will outline
          the nature and scope of the services requested. Within thirty (30)
          days after receipt of the request for services, Service Provider shall
          provide a high-level estimate of the activities to be performed along
          with an estimate of the number of hours required to perform each of
          the activities. Preparation of the high level estimate shall be
          charged at the hourly rates then in effect between Service Provider
          and Service Recipient, or if no rate is specified, at Service
          Provider's then-current rate for such activity. Service Recipient
          shall have thirty (30) days to notify Service Provider if Service
          Recipient desires Service Provider to prepare a Statement of Work.
          Unless otherwise specified in a particular Statement of Work, the
          Statement of Work shall be issued on a time and materials basis and
          shall include an estimate of the hours needed to complete the
          Statement of Work and the hourly rates applicable to the services
          being provided. All services are contemplated to be performed at
          Service Provider's location during normal business hours, excluding
          weekends and Service Provider's holidays. If a Statement of Work
          requires travel to Service Recipient's location or another location at
          the request of Service Recipient, Service Provider shall bill travel
          time incurred by Service Provider's employees at the hourly rate(s)
          specified in the Statement of Work. Service Provider shall issue an
          invoice monthly for such services in accordance with this Agreement.
          For any Statement of Work for which GTE's GTEDS affiliate is a Service
          Provider hereunder, the terms and conditions contained in Attachments
          1 and 2, entitled "Service Level Agreement for Application Enhancement
          and Development" and "SAP R/3 Service Level Agreement", respectively,
          shall apply to such Statement of Work.

                                       2

<PAGE>

     (c)  Order of Precedence.  In the event of any conflict or inconsistency
          between the terms and conditions of any Statement of Work, this
          Agreement, the Software License Agreement among the parties and of
          even date hereof, the Software Development and Technical Services
          Agreement among the parties and of even date hereof, the Intellectual
          Property Ownership and Cross License Agreement among the parties and
          of even date hereof, and any other agreement among the parties hereof,
          the terms and conditions shall take precedence in the following order:

          (i)  Statement of Work;

          (ii) This Agreement (excluding for this purpose the Statements of
               Work);

          (iii) Software License Agreement or the applicable software license
               agreement which is directed to the software for which the
               Services are provided; and

          (iv) Software Development and Technical Services Agreement.

     (d)  Milestones, Phases and Timing; Changes.  Each of the Statements of
          Work shall set out, if applicable, milestones and phases of the work.
          When phases are specified, Service Provider shall not be obligated to
          proceed with work on the next phase until Service Recipient has
          provided written authorization to proceed. If Service Recipient has
          not provided Service Provider with written authorization to proceed on
          a specific phase, and it is necessary to commence or complete such
          phase in order to meet any milestones specified in the Statement of
          Work, Service Provider shall not have any obligations with respect to
          such milestones and the Statement of Work shall be deemed to be
          modified accordingly. The Statement of Work may be modified by mutual
          written agreement, signed by both parties. No verbal changes to the
          Statement of Work are permitted.

     (e)  Performance.  All Services shall be performed in accordance with the
          terms and conditions of this Agreement and the requirements, order of
          performance and delivery dates specified in each Statement of Work.
          Service Provider shall devote such time, efforts and resources to the
          performance of Services as are necessary to accomplish the tasks
          specified in any Statement of Work. The Service Provider may call upon
          the expertise and/or assistance of its affiliates, subcontractors or
          consultants in the performance of such Services, provided that Service
          Provider shall obtain the prior written consent of Service Recipient
          in the event it desires to use outside subcontractors or consultants.
          If a

                                       3

<PAGE>

          Statement of Work specifies that some or all of the work will be
          done by a subcontractors or consultant, no additional approval shall
          be required.

     (f)  Third Party Software Licenses.  The Service Recipient acknowledges
          that Service Provider and its affiliates may be required to use
          certain software licensed to GTE by third parties to provide Services
          pursuant to this Agreement. If any licensor of such third party
          software requires the payment of any consideration to permit Service
          Provider to use the vendor's software in order to perform its
          obligations under this Agreement, Service Provider shall provide
          Service Recipient with thirty (30) days prior written notice of such
          additional consideration. Service Recipient shall have the option to
          (i) procure its own license to such software at its own expense, or
          (ii) authorize Service Provider to incur such required additional
          consideration on its behalf and at Service Recipient's expense. In the
          event that Service Recipient does not agree to either (i) or (ii)
          above, Service Provider shall not be required to provide the Services
          for which such third party licenses are required. If the third party
          requires Service Recipient to secure rights in such third party
          software to receive the Services or to use the result of such
          Services, Service Recipient shall be responsible for securing such
          rights at its own cost and expense.

     (g)  Service Recipient Provided Software.  If Service Recipient elects to
          use Service Provider Hardware (as defined below) to operate and run
          Service Recipient Provided Software (also as defined below) pursuant
          to a Statement of Work, Service Recipient shall obtain all licenses
          necessary for use of such software, pay any associated fees negotiated
          with Service Provider for running such software for Service Recipient
          and pay any costs related to obtaining required consents needed by
          Service Provider to use such software for Service Recipient's benefit.
          Service Recipient shall be responsible for all costs associated with
          Service Recipient provided third party software. Service Recipient
          agrees to indemnify and hold Service Provider harmless against any
          loss, cost, claim, liability, damage, expense (including reasonable
          attorney's fees), or demand by or on behalf of any person, firm,
          corporation, or governmental authority resulting from or arising out
          of Service Recipient's alleged violation of such third party software
          rights, provided that prior to agreement on a Statement of Work, the
          parties shall have worked diligently together to identify all license
          rights needed by Service Recipient hereunder and to confirm that
          Service Provider has the right to perform the services hereunder.
          "Service Provider Hardware" shall mean the central processing units
          and peripheral equipment installed in a Service Provider's facility
          and utilized by Service Provider to provide Services described in any
          Statement of Work. The term Service Provider Hardware does not include
          circuit equipment from Service Recipient's site to Service

                                       4

<PAGE>

          Provider's facility, terminals, controllers, or telecommunications
          equipment at Service Recipient's site(s) required to enable Service
          Recipient to utilize Service Provider's Services, all of which are
          Service Recipient's responsibility. "Service Recipient Provided
          Software" shall mean software owned or licensed by Service Recipient
          which is installed an operated at a Service Provider facility pursuant
          to a Statement of Work.

2.   COMPENSATION AND BILLING.

     (a)  Invoices.  The charges for the Services shall be set out in the
          applicable Statement of Work. Service Provider shall invoice Service
          Recipient for Services in accordance with the payment schedule set
          forth in the applicable Statement of Work. Each invoice shall
          reference this Agreement and the applicable Statement of Work. The
          invoices shall be itemized to show the details as to all billed items.
          Payments shall be made within thirty (30) days from the date each
          invoice is received by Service Recipient.

     (b)  Sales, Use and Other Taxes.  In addition to the charges for Services,
          Service Recipient shall pay Service Provider an amount equal to any
          sales, use, privilege, gross revenue, excise, or any other tax (except
          income and franchise taxes), as well as any assessments or duties with
          respect to the Services lawfully levied by a duly constituted
          governmental authority and for which Service Provider is required, by
          law, to collect from Service Recipient. In addition each party shall
          be responsible for all real and personal property taxes imposed on
          software and equipment owned by the respective parties on January 1 of
          every year. If Service Recipient determines that any Services are
          exempt from a tax, Service Recipient must provide Service Provider a
          properly completed exemption certificate, for each jurisdiction for
          which Service Recipient is claiming an exemption, before Service
          Provider will exclude the respective tax from amounts charged to
          Service Recipient. Service Recipient will not deduct any tax amount
          from remittances to Service Provider until a properly completed
          exemption certificate, for all jurisdictions for which Service
          Recipient is claiming an exemption, has been provided to Service
          Provider.

     (c)  Expense Reimbursement. Service Recipient shall reimburse Service
          Provider for reasonable expenses for travel, meals and lodging
          incurred by Service Provider in the performance of its obligations
          under this Agreement. Any such charges shall be in compliance with
          Service Provider's employee expense policies. There shall be no mark-
          up of such expense charges. Service Provider shall maintain
          documentation of expenses incurred, and shall provide copies of
          invoices of $100 or more upon Service Recipient's request. Service
          Provider shall bill Service

                                       5

<PAGE>

          Recipient monthly for expenses as they accrue. The parties will
          specify any limitation on the reimbursement of expenses in the
          applicable Statement of Work. It is acknowledged and agreed that if
          Service Provider is reasonably required to incur expenses beyond such
          limitation in order to provide the Services, then Service Provider is
          excused from performing such Services until said expense limitation is
          removed or changed as mutually agreed, provided that Service Provider
          promptly notifies Service Recipient of the need to exceed the
          limitation.

     (d)  Records.  Service Provider shall maintain complete and accurate
          records in a form consistent with generally accepted accounting
          practices, to substantiate Service Provider charges. Service Provider
          shall retain, and make available upon request, such records for a
          period of three (3) years from the date of invoice for Services.
          Service Recipient and its authorized agents, subject to obligations of
          confidentiality as set forth in this Agreement, shall have access to
          such records upon prior written request during normal business hours
          during the term of this Agreement and during the respective periods in
          which Service Provider is required to maintain such records pursuant
          to this subsection 2(d). Access to the records shall be made at the
          location where such records are normally maintained.

     (e)  Late Payment.  Late payment charges may be imposed by Service Provider
          at the rate of 1 1/2% per month (18%) per year). Interest shall not be
          payable by Service Recipient for amounts on invoices which it has
          disputed in good faith provided that Service Recipient pays the
          applicable amount due, if any, within thirty (30) days of the
          resolution of the dispute. With respect to disputed invoices,
          undisputed amounts must be paid within thirty (30) days from the date
          of the invoice. Service Provider must be advised in writing of any
          amounts disputed by Service Recipient and the basis for the dispute
          within ten (10) days from the date of the invoice or the entire
          invoice must be paid.

3.   TERM.

     This Agreement is effective as of _____________ and shall continue in
     effect for a term of one (1) year, or such term as may be set out in a
     Statement of Work, or until GENUITY exercises its right in its sole
     discretion to terminate for convenience under Section 24 (c) of this
     Agreement. This Agreement shall remain in effect with respect to and for
     the duration of any Statement of Work that is agreed by the parties to
     extend beyond the end of the term.  In the event of any termination or
     expiration, the Parties agree to reasonably cooperate in transitioning the
     work to any successor service provider, and upon Service Recipient's
     request and at its expense, Service Provider shall use commercially

                                       6

<PAGE>

     reasonable efforts to secure Service Recipient's continued use of
     applicable third party licenses.

4.   ACCEPTANCE.

     (a)  Acceptance.  Each Statement of Work shall specify the criteria, if
          any, that Service Provider must meet in order for the Work Products
          described in the Statement of Work to be accepted by Service
          Recipient. It may also specify a test plan, and such other information
          as Service Provider and Service Recipient mutually deem appropriate
          and the period of time, if any, that Service Recipient shall have to
          review such Work Product and provide notice of acceptance or rejection
          to Service Provider. Failure to accept or reject such Work Product
          within the specified period of time or the commercial use of such Work
          Product by or for the benefit of Service Recipient shall be deemed to
          be acceptance.

     (b)  Rejection and Revision.  If Service Recipient rejects any Work
          Product, it shall specify in reasonable detail in writing the reasons
          for rejection and the requirements for revision. If the notice of
          rejection is not sufficiently detailed to allow Service Provider to
          determine why such Work Product is unacceptable, Service Provider may
          request in writing that Service Recipient provide sufficient
          additional information. If Service Provider and Service Recipient have
          joint responsibility for the Work Product and the Work Product
          requires revision, Service Provider shall assist Service Recipient in
          making revisions necessary for the Work Product to meet the acceptance
          criteria within a period of time that is reasonable under the
          circumstances. If Service Provider has sole responsibility for the
          Work Product, then it shall make the necessary revisions within a
          period of time that is reasonable under the circumstances.

5.   CONFIDENTIAL INFORMATION.

     (a)  Confidentiality.  In the course of requesting and performing Services
          pursuant to this Agreement, each party may receive or acquire from the
          other information or data pertaining to specifications, drawings,
          sketches, models, samples, computer programs, methods, concepts, know-
          how, techniques, processes, and other technical or business
          information that the other party desires to protect against
          unauthorized use or further disclosure. Unless otherwise expressly set
          forth in a Statement of Work, for purposes of this Agreement,
          "Confidential Information" shall mean: (i) any information in written,
          other tangible or electronic form which is labeled by the disclosing
          party as "confidential", "proprietary" or with a

                                       7

<PAGE>

          legend of similar import; (ii) software in any form (including related
          documentation), whether or not labeled in accordance with the
          preceding; (iii) Services and Work Products provided pursuant to this
          Agreement, with the ownership of and proprietary interest therein
          being defined herein or in the applicable Statement of Work; or (iv)
          information orally disclosed and identified as confidential at the
          time of such disclosure which is summarized in writing within thirty
          (30) days of such disclosure.  Each party shall remain the exclusive
          owner of its Confidential Information.

     (a)  Use of Confidential Information. The Confidential Information of the
          disclosing party may be used by the receiving party only for the
          performance or use of Services or Work Products to be provided
          pursuant to this Agreement and may only be disclosed to those
          employees, subcontractors or agents of the receiving party who have a
          need to know in order to perform or use Services or Work Products
          pursuant to this Agreement. Except and to the extent set forth in
          subsection 6(c), the receiving party may not disclose Confidential
          Information of the other party to any other person, entity, or the
          public without the prior written consent of the disclosing party.
          However, such Confidential Information may be disclosed by the
          receiving party without the necessity of prior written consent, to the
          receiving party's subcontractors or consultants who require access to
          such Confidential Information to perform or use the Services under
          this Agreement, provided such persons have entered into written
          agreements which contain obligations of nondisclosure and nonuse no
          less restrictive than set forth in this Section 6. It is agreed that
          such written agreements shall be enforceable by the disclosing party.

     (b)  Exceptions.  The obligations in subsection 6(b) shall not apply to
          that portion of any information received from the disclosing party
          which is: lawfully in the receiving party's possession, with no
          restriction on use or disclosure, prior to its acquisition from the
          disclosing party; received in good faith by the receiving party, with
          no restrictions on use or disclosure, from a third party not subject
          to any confidential obligation to the disclosing party; now or later
          becomes publicly known through no breach of confidential obligation by
          the receiving party; released by the disclosing party to any other
          person, firm or entity (including governmental agencies or bureaus)
          without restriction on use or disclosure; or independently developed
          by or for the receiving party without any reliance on or use of
          Confidential Information of the disclosing party. The foregoing
          exceptions shall not apply to software in any form.

     (d)  Disclosure and Notification.  If a receiving party receives a request
          to disclose any Confidential Information of the disclosing party
          (whether pursuant to a subpoena, an order issued by a court or other
          governmental

                                       8

<PAGE>

          authority of competent jurisdiction or otherwise) and, on
          advice of legal counsel, determines that disclosure is required under
          applicable law, the receiving party agrees that, prior to disclosing
          any Confidential Information of the disclosing party, it shall (i)
          notify the disclosing party of the existence and terms of such request
          or advice, (ii) cooperate with the disclosing party in taking legally
          available steps to resist or narrow any such request or to otherwise
          eliminate the need for such disclosure at the disclosing party's sole
          expense, if requested to do so by the disclosing party, and (iii) if
          disclosure is required, it shall be the obligation of the disclosing
          party to use its commercially reasonable efforts to obtain a
          protective order or other reliable assurance that confidential
          treatment shall be afforded to such portion of the Confidential
          Information of the disclosing party as is required to be disclosed.

     (e)  Continuing Obligation.  The obligation of non-disclosure and non-use
          with respect to Confidential Information of the disclosing party shall
          survive termination of this Agreement and shall continue for a period
          of 5 years thereafter, provided that the obligations of non-disclosure
          and non-use shall continue in perpetuity for software included in
          Confidential Information.

6.   OWNERSHIP AND LICENSE OF WORK PRODUCTS.

     (a)  Ownership.  Unless expressly provided otherwise in the applicable
          Statement of Work, the ownership of any and all right, title and
          interest in and to work products (including without limitation:
          computer programs and documentation; photographs; logos; drawings;
          artistic and graphical works; reports; data; information; and other
          works of authorship) made by Service Provider, or its suppliers or
          contractors, during performance of Services for Service Recipient in
          accordance with the applicable Statement of Work (all such works
          herein "Work Products"), shall be determined in accordance with the
          terms and conditions of the Software Development and Technical
          Services Agreement relating to ownership of intellectual property,
          with those terms and conditions being applied to any Statement of Work
          issued hereunder and being incorporated herein in their entirety by
          this reference.

     (b)  License.  Unless expressly provided otherwise in the applicable
          Statement of Work:

          (1)  If Service Provider owns any Work Products, any license granted
               to Service Recipient by Service Provider in or to any such Work
               Products shall be on the same terms and conditions as the license
               grant by GTE to GENUITY contained in the Software

                                       9

<PAGE>

               License Agreement, with such terms and conditions being
               incorporated herein in their entirety by this reference.

          (2)  If Service Recipient owns any Work Products, and subject to
               Service Provider's obligations with respect to Service
               Recipient's Confidential Information, Service Provider shall
               retain a non-exclusive, perpetual, world-wide, royalty-free
               license to use any such Work Product for its ordinary and usual
               business purposes.

7.   DISPUTE RESOLUTION.

     (a)  General. Except as provided in subsection 7(d) below, any controversy
          or claim arising out of or relating to this Agreement, or the breach
          thereof, shall attempt to be settled first, by good faith efforts of
          the parties to reach mutual agreement, and second, if mutual agreement
          is not reached to resolve the dispute, by final, binding arbitration
          as set out in subsection 7(c) below.

     (b)  Initial Resolution.  A party that wishes to initiate the dispute
          resolution process shall send written notice to the other party with a
          summary of the controversy and a request to initiate these dispute
          resolution procedures. Each party shall appoint a knowledgeable,
          responsible representative from the company who has the authority to
          settle the dispute, to meet and negotiate in good faith to resolve the
          dispute. The discussions shall be left to the discretion of the
          representatives, who may utilize other alternative dispute resolution
          procedures such as mediation to assist in the negotiations.
          Discussions and correspondence among the representatives for purposes
          of these negotiations shall be treated as Confidential Information
          developed for purposes of settlement, shall be exempt from discovery
          and production, and shall not be admissible in the arbitration
          described above or in any lawsuit pursuant to Rule 408 of the Federal
          Rules of Evidence. Documents identified in or provided with such
          communications, which are not prepared for purposes of the
          negotiations, are not so exempted and may, if otherwise admissible, be
          admitted in evidence in the arbitration or lawsuit. The parties agree
          to pursue resolution under this subsection 7(b) for a minimum of sixty
          (60) days before requesting arbitration.

     (c)  Arbitration.  If the dispute is not resolved under the preceding
          subsection 7(b) within sixty (60) days of the initial written notice,
          either party may demand arbitration by sending written notice to the
          other party. The parties shall promptly submit the dispute to the
          American Arbitration Association for resolution by a single neutral
          arbitrator acceptable to both parties, as selected under the rules of
          the American Arbitration

                                       10

<PAGE>

          Association. The dispute shall then be administered according to the
          American Arbitration Association's Commercial Arbitration Rules, with
          the following modifications: (i) the arbitration shall be held in a
          location mutually acceptable to the parties, and if the parties do not
          agree, the location shall be New York City; (ii) the arbitrator shall
          be licensed to practice law; (iii) the arbitrator shall conduct the
          arbitration as if it were a bench trial and shall use, apply and
          enforce the Federal Rules of Evidence and Federal Rules of Civil
          Procedure; (iv) except for breaches related to Confidential
          Information, the arbitrator shall have no power or authority to make
          any award that provides for consequential, punitive or exemplary
          damages; (v) the arbitrator shall control the scheduling so that the
          hearing is completed no later than 60 days after the date of the
          demand for arbitration; and (vi) the arbitrator's decision shall be
          given within 5 days thereafter in summary form that states the award,
          without written decision, which shall follow the plain meaning of this
          Agreement, the relevant documents, and the intent of the parties.
          Judgment on the award rendered by the arbitrator may be entered in any
          court having jurisdiction over the parties. Each party to the dispute
          shall bear its own expenses arising out of the arbitration, except
          that the expenses of the facilities to conduct the arbitration and the
          fees of the arbitrator shall be shared equally by the parties.

     (d)  Injunctive Relief.  The foregoing notwithstanding, each party shall
          have the right to seek injunctive relief in an applicable court of law
          or equity independent of any resolution of the dispute in accordance
          with the foregoing.

8.  RELATIONSHIP OF PARTIES.

     (a)  Independent Contractors.  In providing any Services pursuant to this
          Agreement, Service Provider and its affiliates are independent
          contractors and not agents or representatives of Service Recipient.
          Persons furnished by the respective parties shall be solely the
          employees or agents of such parties, respectively, and shall be under
          the sole and exclusive direction and control of such parties. They
          shall not be considered employees of the other party or parties for
          any purpose. Each party shall also be responsible, respectively, for
          payment of taxes, including federal, state, and municipal taxes,
          chargeable or assessed with respect to its employees or agents, such
          as social security, unemployment, worker's compensation, disability
          insurance and federal and state income tax withholding.

                                       11

<PAGE>

     (b)  No Performance.  Neither party undertakes by this Agreement or any
          Statement of Work to conduct the business or operations of the other
          party. Nothing contained in this Agreement or any Statement of Work is
          intended to give rise to a partnership or joint venture between the
          parties or to impose upon the parties any of the duties or
          responsibilities of partners or joint venturers.

9.   FORCE MAJEURE.

     If performance of any Services under this Agreement is prevented,
     restricted or interfered with by reason of acts of God, wars, revolution,
     civil commotion, acts of public enemy, embargo, acts of government in its
     sovereign capacity, labor difficulties, including without limitation,
     strikes, slowdowns, picketing or boycotts, communication line failures,
     power failures, or any other circumstances beyond the reasonable control
     and not involving any fault or negligence of the party affected, the party
     affected, upon giving prompt notice to the other party, shall be excused
     from such performance on a day-to-day basis during the continuance of such
     prevention, restriction, or interference (and the other party shall
     likewise be excused on a day-to-day basis during the same period, from
     performance of its obligations which are dependent upon or affected by such
     nonperformance), provided, however, that the party so affected shall use
     its commercially  reasonable efforts to avoid or remove such causes of
     nonperformance and both parties shall proceed immediately with the
     performance of their obligations under this Agreement whenever such causes
     are removed or cease.  If a force majeure condition continues to prevent a
     party from performing for more than (30) consecutive days, then the other
     party may terminate the applicable Statement of Work.

10.  REGULATORY COMPLIANCE.

     (a)  Cooperation.  This Agreement is subject at all times to any statute,
          order, rule, or regulation or any state or federal regulatory agency
          having competent jurisdiction over one or both of the parties hereto
          or the Services provided hereby.  The parties agree to cooperate with
          each other and with any applicable regulatory agency so that any and
          all necessary approvals may be obtained.  During the term of this
          Agreement, the parties agree to continue to cooperate with each other
          in any review of this Agreement by a regulatory agency so that the
          benefits of this Agreement may be achieved.

     (b)  Filing Agreement.  Notwithstanding the effective date and term of this
          Agreement as stated elsewhere, to the extent that any statute, order,
          rule or regulation or any regulatory agency having competent
          jurisdiction over one or both parties to this Agreement, shall require
          that this Agreement or

                                       12

<PAGE>

          subsequent amendment be filed with or approved by such regulatory
          agency before the Agreement or amendment may be effective, this
          Agreement or amendment shall not be effective in such jurisdiction
          until the first business day after such approval or filing shall have
          occurred.

11.  INDEMNIFICATION.

     (a)  General.  GTE and GENUITY, to the fullest extent permitted by law,
          each shall defend, indemnify and hold harmless the other and its
          affiliates, officers, agents and employees from any and all amounts
          payable under any judgment, verdict, court order or settlement (and
          associated fees and disbursements of counsel) arising from or related
          to any third-party claims for injury, sickness, disease or death of
          any person or damage to any real or tangible personal property or
          assets to the extent arising from the indemnitor's (either directly or
          through its officers, agents, subcontractors or representatives)
          negligence or willful misconduct in the performance of this Agreement
          provided, however, that if a claim is the result of the joint
          negligence or joint willful misconduct of GTE and GENUITY, the amount
          of the claim for which each party is entitled to indemnification shall
          be limited to that portion of such claim that is attributable to the
          negligence or willful misconduct of the indemnifying party. The
          parties agree that the price for Services provided under this
          Agreement includes consideration for the obligation to indemnify as
          set out in this subsection 13(a).

     (b)  Losses.  GENUITY and GTE each shall be responsible for any and all
          claims, actions, damages, liabilities, costs and expenses, including
          reasonable attorneys' fees and expenses (collectively, "Losses"), to
          their respective tangible personal or real property (whether owned or
          leased), and each party agrees to look only to its own insuring
          arrangements (if any) with respect to such Losses. Subject to the
          procedures set forth below, each party shall indemnify, defend, and
          hold the other party harmless from any and all Losses arising out of,
          under or in connection with claims for which the indemnitor is
          responsible under the preceding sentence.

     (c)  Waivers.  GENUITY and GTE waive all rights to recover against each
          other for any Loss to their respective tangible personal property
          (whether owned or leased) from any cause covered by insurance
          maintained by each of them, including their respective deductibles or
          self-insured retentions. GENUITY and GTE shall cause their respective
          insurers to issue appropriate waivers of subrogation rights
          endorsements to all property insurance policies maintained by each
          party. Each party shall give the other written notice if a waiver of
          subrogation is

                                       13

<PAGE>

          unobtainable or obtainable only at additional expense. If the party
          receiving such notice agrees to reimburse the other party for such
          additional expense, the other party shall obtain such waiver of
          subrogation. If a waiver is unobtainable or if a party elects not to
          pay the additional expense of a waiver, then neither party nor their
          insurers shall waive such subrogation rights.

     (d)  Conditions. The indemnification obligations set forth in this Section
          11 shall not apply unless the party claiming indemnification: (i)
          notifies the other promptly in writing of any matters in respect of
          which the indemnity may apply and of which the notifying party has
          knowledge, in order to allow the indemnitor the opportunity to
          investigate and defend the matter; provided, however, that the failure
          to so notify shall only relieve the indemnitor of its obligations
          under this Section 11 if and to the extent that the indemnitor is
          prejudiced thereby; and (ii) gives the other party full control of the
          response thereto and the defense thereof, including any agreement
          relating to the settlement thereof. However, if the indemnitor fails
          to promptly assume the defense of the claim, the party entitled to
          indemnification may assume the defense at the indemnitor's cost and
          expense. The indemnitor shall not be responsible for any settlement or
          compromise made without its prior written consent, unless the
          indemnitee has tendered notice and the indemnitor has then refused to
          assume and defend the claim and it is later determined that the
          indemnitor was obligated to assume and defend the claim. The
          indemnitee agrees to cooperate in good faith with the indemnitor at
          the request and expense of the indemnitor.

12.  LIMITATION OF LIABILITY.

     (a)  General.  A party's and its affiliates' liability arising out of or
          relating to a Statement or Statements of Work and this Agreement,
          including without limitation on account of performance or
          nonperformance of obligations hereunder, regardless of the form of the
          cause of action, whether in contract, tort (including without
          limitation negligence), statute or otherwise, shall in no event exceed
          the lesser of (i) the price to be paid to Service Provider for the
          completed Statement of Work (whether set out as a fixed price,
          estimated price, not-to-exceed amount, or other similar expression of
          the total price for the work to be performed under the Statement of
          Work); (ii) the amount actually paid by Service Recipient to Service
          Provider for the particular Statement of Work from which the claim
          arises; or (iii) if the price to be paid to Service Provider for the
          Statement of Work is expressed as a recurring periodic charge, the
          liability shall be limited to the average of three (3) months charges
          for technical services based on the average previous twelve (12)
          month's (or such lesser number of

                                       14

<PAGE>

          months that the Statement of Work has been in effect) of the invoices
          actually paid by Service Recipient under the Statement of Work. The
          limitation in the immediately preceding sentence does not apply to a
          party's obligations under the Sections entitled Indemnification and
          Confidential Information, nor does it apply to willful misconduct or
          gross negligence on the part of a party.

     (b)  Limitation.  EXCEPT FOR BREACHES RELATED TO CONFIDENTIAL INFORMATION,
          NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT,
          INCIDENTAL, PUNITIVE, EXEMPLARY, SPECIAL OR CONSEQUENTIAL DAMAGE OR
          LOST PROFITS OF ANY KIND WHATSOEVER EVEN IF A PARTY OR ITS AFFILIATES
          HAVE BEEN APPRISED OF THE LIKELIHOOD OF SUCH DAMAGES OCCURRING.

     (c)  Benefits Under Licenses.  Anything contained herein to the contrary
          notwithstanding, this Agreement shall not constitute an agreement to
          start work, to provide Services or Work Product or to make available
          to Service Recipient the benefits under any agreement, license or
          arrangement if doing so without the consent of and/or payment to
          another party thereto would constitute a breach thereof or in any
          material way affect the rights of Service Provider thereunder, unless
          and until such consent is obtained and payment, if any, made to such
          party by Service Provider. Service Provider shall use commercially
          reasonable efforts to secure such consents and benefits under any such
          agreement or arrangement. If Service Provider cannot: (i) obtain such
          consent; or (ii) Service Provider and the third party vendor cannot
          agree on a commercially reasonable payment, if such is required, or
          (iii) if providing the Services or Work Products or making the
          benefits under any such agreement, license or arrangement available
          would materially affect Service Provider's right thereunder, Service
          Provider shall not be required to provide any Services or Work
          Products which are dependent upon any agreement, license or
          arrangement as to which the third party provider has objected in
          writing to making the benefits of such agreement, license or
          arrangement available to Service Recipient. Service Recipient may,
          however, obtain the requisite license or pay such fees that it deems
          appropriate in order for Service Provider to provide the Services, if
          Service Provider's provision of Services pursuant to such Service
          Recipient License or payment is without any adverse material affect to
          Service Provider.

13.  CHANGES IN MANNER OF PROVIDING SERVICES.

     Service Recipient acknowledges that Service Provider and its affiliates may
     in the future determine to outsource certain information technology
     functions or

                                       15

<PAGE>

     perform such functions using different computer software operating systems
     or applications. These changes may prevent Service Provider from providing
     certain Services or Work Products to Service Recipient pursuant to this
     Agreement in the manner in which they have been provided prior to such
     change. In the event Service Provider determines to take any such action,
     it will provide Service Recipient with one hundred twenty (120) days prior
     written notice and will cooperate with Service Recipient to enable Service
     Recipient to continue to receive any affected Services and Work Products
     through arrangements with Service Provider's outsource providers or through
     conversion of Service Recipient data for use on such operating systems or
     applications. In the event Service Provider determines to make such
     changes, Service Recipient shall have the right to terminate this Agreement
     or any affected Statement of Work without any liability or penalty. Any
     customizations requested by Service Recipient within or to the systems
     utilized by Service Provider to provide the Services shall be at Service
     Provider's discretion. Service Recipient shall be required to pay the
     mutually agreed upon cost of such customizations.

14.  INSURANCE.

     (a)  Coverage.  Each of GTE and GENUITY agrees to maintain in full force
          and effect during the term of this Agreement, and so long as the
          indemnity obligations hereunder are in effect, the following minimum
          insurance coverages: (i) Worker's Compensation and Occupational
          Disease covering each party's full liability under the Statutory
          Workers' Compensation Laws for the state in which the Service is being
          performed; (ii) Employer's Liability Insurance in the minimum amount
          of $100,000 per accident, $100,000 disease per employee, and $500,000
          disease aggregate; (iii) General Liability Insurance - Broad Form,
          including, but not limited to each party's Protective Liability,
          Blanket Contractual Liability and Products Liability/Completed
          Operations in the minimum amounts of $1,000,000 per occurrence; and
          (iv) If the use of motor vehicles is required, comprehensive Motor
          Vehicle Liability Insurance to include, but not limited to owned, non-
          owned, leased, and hired vehicles in the minimum amounts of $1,000,000
          combined single limit per occurrence for Property Damage and any
          accident resulting in bodily injury or the death of one or more
          persons, and the consequential damages arising therefrom.

     (b)  Certificates of Insurance.  Certificates of Insurance, incorporating
          the above-described endorsements, shall be furnished to a party upon
          request of the other party.

                                       16

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15.  REPRESENTATIONS AND WARRANTIES.

     Each of GTE and GENUITY represents, warrants, and covenants to the other
     party that:

     (a)  In performing Services, it shall comply with all applicable laws,
          codes, ordinances, orders, rules and regulations of local, state, and
          federal governments and agencies and instrumentalities, including, but
          not limited to, applicable wage and hour, safety and environmental
          laws, and all standards and regulations of appropriate regulatory
          commissions and similar agencies.

     (b)  All Services furnished by it shall be performed by qualified personnel
          at a level of professional performance standard within the industry in
          which the Services are provided.

     (c)  It has all rights and licenses to perform the Services contemplated by
          this Agreement and any Statement of Work incorporated herein.

     (d)  THE WARRANTIES IN THIS SECTION 15 AND ANY WARRANTY IN A STATEMENT OF
          WORK, BUT ONLY IF SPECIFICALLY IDENTIFIED AS AN EXPRESS WARRANTY IN
          SUCH STATEMENT OF WORK (INCLUDING SERVICE LEVEL AGREEMENTS), ARE IN
          LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, OR WHETHER ARISING
          BY COURSE OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE TRADE OR
          PROFESSION OR OTHERWISE, INCLUDING BUT NOT LIMITED TO, IMPLIED
          WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR
          WARRANTIES AGAINST INFRINGEMENT. Except for the warranties expressly
          set forth in this Section 15 and any Statement of Work, Service
          Recipient acknowledges and agrees that it has relied on no other
          representations or warranties and that no other representations or
          warranties have formed the basis of its bargain hereunder.

     (e)  All representations, warranties and covenants of each of the parties
          contained in this Section 15 shall continue for the term of this
          Agreement and shall survive its termination.

16.  ASSIGNMENT AND SUBCONTRACTING.

     (a)  Neither this Agreement nor any rights or obligations hereunder shall
          be assignable by either of the parties hereto; provided that either
          party may delegate all or any portion of its obligations to perform
          Services under this

                                       17

<PAGE>

          Agreement to one or more of its affiliates or
          either party may assign to any affiliate without the consent of the
          other party.

     (b)  Each party may use subcontractors to perform the Services under this
          Agreement as specified in Section 1(d). Each party shall be
          responsible for the fulfillment of its obligations hereunder,
          notwithstanding the performance of such obligations by its
          subcontractors.

17.  EQUAL EMPLOYMENT.

     (a)  General Compliance.  Without limitation of Section 18, COMPLIANCE WITH
          LAWS, each party shall comply with applicable laws concerning
          employment, including, but not limited to the following, which are
          incorporated herein by specific reference:

          (1)  The Equal Employment Opportunity Clause set forth in Section 202,
               paragraphs I through 7, of Executive Order 11246, as amended,
               relative to Equal Employment Opportunity and the implementing
               Rules and Regulations of the Office of Federal Contract
               Compliance (hereinafter referred to as "the OFCCP") relating to
               equal employment opportunity.

          (2)  The Affirmative Action Clause set forth in Section 60-741.4 of
               the Affirmative Action Regulations on Handicapped Workers, issued
               by the OFCCP pursuant to Section 503 of the Vocational
               Rehabilitation Act of 1973, as amended.

          (3)  The Affirmative Action Clause set forth in Section 60-250.4 of
               the regulations issued by the OFCCP under Section 402 of the
               Vietnam Era Veteran's Readjustment Assistance Act of 1974.

          (4)  Public Law 95-507 and Executive Orders 11625 and 12138.

          (5)  The Immigration Reform and Control Act of 1986 and any and all
               rules and regulations pertaining thereto. In compliance with the
               Act, each of the parties requires all approved contracting firms
               to supply only persons authorized to work in the United States
               pursuant to the Act. Each of the parties shall be responsible for
               complying with the Act with regard to all employees supplied to
               the other party.

          (6)  Title I of the Americans with Disabilities Act, 42 U.S.C.A. 12101
               et seq.

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<PAGE>

     (b)  ADA. If any persons furnished by either party under the Agreement or
          any Statement of Work have a disability as defined in the Americans
          with Disabilities Act, 42 U.S.C.A. 12101 et seq. (the ADA), the
          furnishing party shall, where required by Title I of the ADA and at
          its sole expense, provide "reasonable accommodations" that may be
          required under Title I of the ADA. If Service Provider performs
          Services at facilities operated by Service Recipient, Service
          Recipient shall be responsible, at its sole expense, for any physical
          changes to Service Recipient's facility that may be required under the
          ADA with respect to persons utilized by Service Provider in performing
          the Services.

     (c)  Work Environment.  Both parties agree to provide a work environment
          free from all forms of sexual harassment, including but not limited
          to, any unwelcome sexual advances, requests or demands for sexual
          favors, and other visual, verbal, or physical conduct of a sexual
          nature.

18.  COMPLIANCE WITH LAWS.

     GTE and GENUITY shall each comply with the provisions of all applicable
     federal, state, and local laws, ordinances, regulations and codes
     (including procurement of required permits or certificates) in fulfillment
     of their obligations under this Agreement.  The Confidential Information of
     each party may be subject to U.S. export and foreign transactions control
     regulations.  Each party undertakes that it shall not export, nor cause nor
     permit to be exported, the other party's Confidential Information out of
     the United States of America without such other party's prior written
     consent and without compliance with applicable law and regulation; nor
     shall such Confidential Information be made available, directly or
     indirectly, for use in any project associated with the design, development,
     production, testing, stockpiling or use of:  (a) nuclear weapons or
     facilities to produce nuclear explosives; or, (b) missiles; or, (c)
     chemical or biological warfare agents.  Each party agrees to comply with
     all applicable laws and regulations relating to the exportation of
     technical information, as they currently exist and as they may be amended
     from time to time.

19.  PLANT WORK RULES AND RIGHT OF ACCESS.

     (a)  Compliance.  Employees, subcontractors, and agents of the parties,
          while on the premises of the other, shall comply with all plant rules,
          regulations and reasonable company standards for security, including
          (when required by U.S. government regulations) submission of
          satisfactory clearance from U.S. Department of Defense and other
          federal authorities concerned.

     (b)  Access. Each party shall permit reasonable access during normal
          working hours to its facilities that are used in connection with the

                                       19

<PAGE>

          performance of Services. No charge shall be made for such visits.
          Reasonable prior notice shall be given when access is required.

     (c)  Limitation on Access.  If either party is given access, whether on-
          site or through remote facilities, to any computer or electronic data
          storage system of the other party in order to accomplish the Services
          called for in this Agreement, the party that receives such access
          shall limit such access and use solely to perform Services within the
          scope of this Agreement and shall not access or attempt to access any
          computer system, electronic file, software or other electronic
          services other than those specifically required to accomplish the
          Services required under this Agreement. Under no circumstances shall
          either party's personnel access any networks or facilities of the
          other party for the purpose of accessing other external networks, nor
          shall any such capabilities for such access be published or made known
          via any medium, as for example and not by way of limitation, posting
          on bulletin boards or E-mail. Any such use or publication shall be a
          material breach of this Agreement. Neither party shall use back doors,
          data capture routines, games, viruses, worms, or Trojan horses and any
          intentional introduction of such into the other party's data networks
          shall be deemed a material breach of this Agreement. The party
          receiving access shall limit such access to those of its employees
          whom the other party has authorized in writing to have such access in
          connection with this Agreement or the applicable Statement of Work,
          and shall strictly follow all security rules and procedures for use of
          the providing party's electronic resources. All user identification
          numbers and passwords and any information obtained as a result of
          access to and use of a party's computer and electronic data storage
          systems shall be deemed to be, and shall be treated as, Confidential
          Information under applicable provisions of this Agreement. Each party
          agrees to cooperate with the other in the investigation of any
          apparent unauthorized access to a party's computer or electronic data
          storage systems.

20.  SERVICE RECIPIENT RESPONSIBILITIES.

     Service Recipient agrees to perform in a timely fashion those tasks, and to
     provide the personnel, facilities and accurate information as agreed by the
     parties and set forth in the applicable Statement of Work.  Service
     Recipient further agrees to cooperate with Service Provider in its
     performance of this Agreement, to not unreasonably withhold its consent to
     any matter for which consent is required or requested.

                                       20

<PAGE>

21.  PERMITS.

     Unless otherwise specifically provided for in this Agreement, Service
     Provider shall obtain and keep in full force and effect, at its expense,
     any permits, licenses, consents, approvals and authorizations ("Permits")
     necessary for and incident to the performance and completion of the
     Services.  Notwithstanding the foregoing, Service Recipient shall obtain
     and keep in full force and effect, at its expense, any Permits related to
     its facilities and the conduct of its business.

22.  PUBLICITY.

     The parties agree to submit to one another, for prior written approval, all
     advertising, sales promotion, press releases and other publicity matters
     relating to the Services performed pursuant to this Agreement, when its
     respective name or mark is mentioned or language from which the connection
     of said name or mark may be inferred or implied.  The parties further agree
     not to publish or use such advertising, sales promotions, press releases,
     or publicity matters without such prior written approval.  Any approval
     required under this Section 22 shall not be unreasonably withheld or
     delayed by either party.  Notwithstanding the foregoing, Service Provider
     may list Service Recipient as a customer in promotional and marketing media
     and describe in general terms the Services provided by Service Provider
     under this Agreement in proposals and other marketing materials.

23.  TRADEMARKS, TRADENAMES AND OTHER INTELLECTUAL PROPERTY.

     Except as expressly set forth in this Agreement or in a separate written
     agreement between GTE and GENUITY, nothing in this Agreement or any
     Statement of Work shall grant, suggest or imply any right, license or
     authority for one party to use the name, trademarks, service marks, trade
     names or domain names of the other for any purpose whatsoever.  Except and
     to the extent expressly set forth in this Agreement or in a separate
     written agreement between GTE and GENUITY, nothing in this Agreement or any
     Statement of Work shall be deemed to grant to either party any right or
     license under any intellectual property of the other party.

24.  TERMINATION OF WORK.

     (a)  Termination Events.  Either party may terminate or cancel this
          Agreement or any Statement of Work, effective immediately, upon
          written notice to the other party, if any of the following events
          occur:

                                       21

<PAGE>

          (1)  The other files a voluntary petition in bankruptcy (other than as
               creditor).

          (2)  The other is adjudged bankrupt.

          (3)  A court assumes jurisdiction of the assets of the other under a
               federal reorganization act.

          (4)  A trustee or receiver is appointed by a court for all or a
               substantial portion of the assets of the other.

          (5)  The other becomes insolvent or suspends its business.

          (6)  The other makes an assignment of its assets for the benefit of
               its creditors except as required in the ordinary course of
               business.

     (b)  Termination for Breach.  Either party may terminate or cancel this
          Agreement or a Statement of Work, for a material breach or default of
          any of the terms, conditions or covenants of this Agreement by the
          other, provided that such termination or cancellation may be made only
          following the expiration of a thirty (30) day period ("Cure Period")
          during which the breaching party has failed to cure such breach after
          having been given written notice thereof. In such event, the non-
          breaching party may terminate by giving 10 days written notice of
          termination, after the expiration of the Cure Period.

     (c)  Termination for Convenience.  Service Recipient may terminate this
          Agreement or a Statement of Work during the term of this Agreement or
          a Statement of Work, for convenience on one hundred twenty (120) days
          prior written notice to Service Provider. In the event of termination
          by Service Recipient pursuant to this Sub-part, prior to the end of
          the term, Service Recipient will reimburse Service Provider for all
          Service Recipient-approved, third party costs for equipment or
          software which have been incurred by Service Provider after the
          execution of this Agreement as a direct result of Service Provider's
          provision of Services under this Agreement or any Statement of Work,
          provided that Service Recipient shall be entitled to any right,
          license or title related to any such equipment or software to the
          extent Service Provider has the ability to convey such right, license
          or title.

     (d)  Termination Assistance.  Upon termination of a Statement of Work,
          Service Provider shall perform the following turnover services if
          requested in writing by Service Recipient:

                                       22

<PAGE>

          (1)  Prepare and submit a detailed turnover plan which includes the
               overall strategy, schedule, itemization of turnover deliverables,
               and tasks required to complete the turnover; and

          (2)  Transfer date files (archived and current), files, and
               documentation to Service Recipient as may be provided in the
               Statement of Work.

          Service Recipient shall pay Service Provider for the turnover services
          delineated in this subsection 24(d) at the hourly rates specified in
          the Statement of Work or if no rates are specified, at Service
          Provider's then current rates for such services.  Except as expressly
          stated herein, Service Recipient acknowledges that Service Provider
          shall provide no turnover assistance except as specifically requested
          in writing by Service Recipient and agreed to in writing by Service
          Provider.

     (e)  Termination under Statement of Work.  Statements of Work may be
          terminated as set out under their specific terms, if different from
          those set out in subsections (a), (b) and (c) of Section 24 above.

25.  NOTICE.

     Any written notice either party may give the other concerning the subject
     matter of this Agreement shall be in writing and given or made by means
     that obtain a written acknowledgment of receipt.  If the notice pertains to
     a Statement of Work performed by any of the following entities notice shall
     be sent to the applicable company addresses shown below, which may be
     changed by written notice:

     To GTE SERVICE CORPORATION:
               1255 Corporate Drive
               Irving, Texas  75038
               Attention: _____________

     To GTE DATA SERVICES INCORPORATED:
               One East Telecom Parkway
               Temple Terrace, Florida  33637
               Attention: _____________

     To GTE CONSOLIDATED SERVICES INCORPORATED:
               1255 Corporate Drive
               Irving, Texas  75038
               Attention: _____________

     To GTE COMMUNICATION SYSTEMS INCORPORATED:
               5616 High Point

                                       23

<PAGE>

               Drive, Irving, Texas  75038
               Attention:_____________

     To GENUITY:
               3 Van de Graaff Drive
               Burlington, Massachusetts  01803
               Attention: _____________

     Notice shall be deemed to have been given or made when actually received,
     as evidenced by written acknowledgment of receipt.

26.  WAIVER OF TERMS AND CONDITIONS.

     Failure to enforce any of the terms or conditions of this Agreement shall
     not constitute a waiver of any such terms or conditions, or of any other
     terms or conditions.

27.  SEVERABILITY.

     Where any provision of this Agreement is declared invalid, illegal, void or
     unenforceable, or any changes or modifications are required by regulatory
     or judicial action, and any such invalid, illegal, void or unenforceable
     provision, or such change or modification, substantially affects any
     material obligation of a party hereto, the remaining provisions of this
     Agreement shall remain in effect and the parties shall mutually agree upon
     a course of action with respect to such invalid provision or such change or
     modification to the end that the purposes of this Agreement are carried
     out.

28.  SURVIVAL OF OBLIGATIONS.

     The provisions in the Agreement relating to Confidentiality,
     Indemnification, Dispute Resolution, Termination, Compensation and Billing,
     Limitation of Liability, and Insurance shall survive any termination,
     cancellation or expiration of this Agreement.

29.  APPLICABLE LAW.

     This Agreement, and the rights and obligations contained in it, shall be
     governed by and construed in accordance with the laws of the State of New
     York, without regard to any conflicts of law principles that would require
     the application of the laws of any other jurisdiction.

                                       24

<PAGE>

30.  NO UNREASONABLE DELAY OR WITHHOLDING.

     Where agreement, approval, acceptance, consent or similar action by GENUITY
     or GTE is required, such action shall not be unreasonably delayed or
     withheld.

31.  ENTIRE AGREEMENT.

     This Agreement represents the entire understanding between the parties with
     the respect to its provisions and cancels and supercedes all prior
     agreements or understandings, whether written or oral, with respect to the
     subject matter.  This Agreement may only be modified or amended by an
     instrument in writing signed by duly authorized representatives of the
     parties.  This Agreement shall be deemed to include all Exhibits, Addenda
     and Statements of Work issued hereunder.

32.  RULES OF INTERPRETATION.

     Headings in this Agreement are for convenience of reference only and shall
     not affect the interpretation or construction hereof.  Unless otherwise
     specified, (i) the terms "hereof", "herein" and similar terms refer to this
     Agreement as a whole and (ii) references herein to "Sections" and
     "subsections" refer to parts, sections or subsections of this Agreement.

[remainder of this page left blank]

                                       25

<PAGE>

* * *

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement through
their authorized representatives.

Genuity Inc.                            GTE Service Corporation

By:______________________________       By:_________________________________

Name:____________________________       Name:_______________________________

Title:___________________________       Title:______________________________

Date:____________________________       Date:_______________________________

                                       26

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