Document:

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                                                                  EXECUTION COPY

                                                                     EXHIBIT 4.2
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                         VERIZON GLOBAL FUNDING CORP.,
                                    Issuer

                         VERIZON COMMUNICATIONS INC.,
                                    Parent

                                      and

                          FIRST UNION NATIONAL BANK,
                                    Trustee

                     ____________________________________

                         FIRST SUPPLEMENTAL INDENTURE

                           Dated as of May 15, 2001

                                      TO

                                   INDENTURE

                         Dated as of December 1, 2000
                     ____________________________________

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     FIRST SUPPLEMENTAL INDENTURE, dated as of May 15, 2001 (herein called the
"Supplemental Indenture"), among VERIZON GLOBAL FUNDING CORP., a corporation
duly organized and existing under the laws of Delaware and having its principal
executive office at 3900 Washington Street, 2nd Floor, Wilmington, Delaware
19802 (hereinafter referred to as the "Company"), VERIZON COMMUNICATIONS INC., a
corporation duly organized and existing under the laws of Delaware and having
its principal executive office at 1095 Avenue of the Americas, New York, New
York 10036 (hereinafter referred to as the "Parent"), and FIRST UNION NATIONAL
BANK, a banking association organized and existing under the laws of the United
States of America (hereinafter referred to as the "Trustee"), under the
Indenture dated as of December 1, 2000, among the Company, the Parent and the
Trustee (hereinafter referred to as the "Original Indenture").

                                   RECITALS

     WHEREAS, the Company has duly authorized the issuance from time to time of
its securities, in one or more series, evidencing its unsecured indebtedness
(the "Securities") pursuant to the Original Indenture;

     WHEREAS, the Parent has entered into a Support Agreement, dated as of
October 31, 2000 (the "Support Agreement"), pursuant to which the Parent has
agreed with the Company, subject to the terms thereof, to assure the timely
payment of principal of and interest and premium, if any, on the Securities;

     WHEREAS, in accordance with Section 901 of the Original Indenture, the
Company, the Parent and the Trustee may enter into supplemental indentures to
the Original Indenture without the consent of the Holders of Securities to,
among other things, (i) issue and establish the form and terms of any series of
Securities and (ii) cure any ambiguity or correct or supplement any provision
which may be defective or inconsistent with the Original Indenture, or to make
such other provisions in regard to matters or questions arising under the
Original Indenture as shall not be inconsistent with the provisions of the
Original Indenture and not adversely affect the interests of the Holders of the
Securities of any series;

     WHEREAS, the Company desires to issue and establish the form and terms of a
series of Securities under the Original Indenture to be designated as the "Zero-
Coupon Convertible Notes due 2021" (hereinafter referred to as the "Notes") and
to otherwise amend and supplement the Original Indenture in accordance with the
terms thereof; and

     WHEREAS, the Company and the Parent have determined that the requirements
of the Original Indenture have been satisfied and have requested the Trustee to
join with them in the execution and delivery of this Supplemental Indenture; all
requirements necessary to make this Supplemental Indenture a valid instrument in
accordance with its terms have been met; and the execution and delivery hereof
have been in all respects duly authorized;

     NOW, THEREFORE, for good and valuable consideration the sufficiency of
which is hereby acknowledged, the Company and the Parent covenant and agree with
the Trustee as follows:
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                                  ARTICLE ONE

                        TERMS AND ISSUANCE OF THE NOTES

SECTION 1.01.  Issuance and Designation.

     A series of Securities which shall be designated as the Company's "Zero-
Coupon Convertible Notes due 2021" is hereby duly established and shall be
executed, authenticated and delivered in accordance with the provisions of, and
shall in all respects be subject to, the terms, conditions and covenants of, the
Original Indenture and this Supplemental Indenture.  The aggregate principal
amount at maturity of the Notes which may be authenticated and delivered under
this Supplemental Indenture shall not, except as permitted by the provisions of
the Original Indenture, exceed $6,258,390,000, as the same may be increased from
time to time in connection with an increased accretion rate pursuant to
paragraph 1 of the Securities.

     The Notes are "OID Securities" within the meaning of the Original
Indenture.  If an Event of Default with respect to the Notes occurs and is
continuing, then, upon a declaration of acceleration pursuant to Section 502 of
the Original Indenture, the amount of principal that shall become due and
payable shall equal the Accreted Principal Amount;  provided, however, that if
the Company exercises its option to pay cash interest instead of accreting the
principal amount of the Notes following a Tax Event, the Notes shall no longer
be considered "OID Securities" within the meaning of the Original Indenture and
the principal amount of the Notes, commencing on the date on which the principal
of the Notes is restated in accordance with the terms of the Notes, shall equal
the Restated Principal Amount.

SECTION 1.02.  Form and Other Terms of Notes; Incorporation of Terms.

     The Notes shall be substantially in the form attached hereto as Exhibit A.
The terms of such Notes are herein incorporated by reference and form a part of
this Supplemental Indenture.

                                  ARTICLE TWO

                 AMENDMENTS TO TERMS OF THE ORIGINAL INDENTURE

SECTION 2.01.  Certain Definitions.

     (a)  Section 101 of the Original Indenture is hereby amended with respect
to the Notes only to add the following definitions in alphabetical order :

          "Accreted Conversion Price" has the meaning specified in the
     Securities.

          "Accreted Principal Amount" has the meaning specified in the
     Securities.

          "Accreted Value Conversion" has the meaning specified in the
     Securities.

          "Administrative Action" has the meaning specified in the Securities.

          "Applicable Percentage" has the meaning specified in the Securities.

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          "Average Sale Price" has the meaning specified in Section 1407.

          "Capital Stock" for any corporation means any and all shares,
     interests, rights to purchase, warrants, options, participations or other
     equivalents of or interests in (however designated) stock issued by that
     corporation.

          "cash" has the meaning specified in Section 1107(b).

          "Change in Control" has the meaning specified in Section 1108(a).

          "Change in Control Purchase Date" has the meaning specified in Section
     1108(a).

          "Change in Control Purchase Notice" has the meaning specified in
     Section 1108(c).

          "Change in Control Purchase Price" has the meaning specified in
     Section 1108(a).

          "Closing Sales Price" has the meaning specified in Section 1107(d).

          "Company Notice" has the meaning specified in Section 1107(e).

          "Company Notice Date" has the meaning specified in Section 1107(c).

          "Conversion Agent" means the office or agency where Securities may be
     presented for conversion, and shall initially be First Union National Bank.

          "Conversion Date" has the meaning specified in Section 1402.

          "Conversion Rate" has the meaning specified in Section 1401.

          "Ex-Dividend Time" has the meaning specified in Section 1407.

          "Extraordinary Cash Dividends" has the meaning specified in Section
     1408.

          "Five-Year Reset Rate" has the meaning specified in the Securities.

          "Interest Payment Date" has the meaning specified in the Securities.

          "Issue Price" of any Security means, in connection with the original
     issuance of such Security, the initial issue price at which the Security is
     issued as set forth on the face of the Security.

          "Market Price" has the meaning specified in Section 1107(d).

          "Notes" means any of the Company's Zero-Coupon Convertible Notes due
     2021, as amended or supplemented from time to time, issued under this
     Indenture.

          "NYSE" means The New York Stock Exchange, Inc.

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          "One-Year Reset Rate" has the meaning specified in the Securities.

          "Parent Common Stock" shall mean the shares of common stock, $0.10 par
     value per share, of the Parent existing on the date of the issuance of the
     Securities or any other shares of Capital Stock of the Parent into which
     such common stock shall be reclassified or changed.

          "Purchase Date" has the meaning specified in Section 1107(a).

          "Purchase Notice" has the meaning specified in Section 1107(a).

          "Purchase Price" has the meaning specified in Section 1107(a).

          "quarterly conversion period" has the meaning specified in the
     Securities.

          "Redemption Price" has the meaning specified in the Securities.

          "Reset Rate" has the meaning specified in the Securities.

          "Reset Rate Agent" has the meaning specified in the Securities.

          "Reset Rate Determination Date" has the meaning specified in the
     Securities.

          "Restated Principal Amount" means, if a Tax Event occurs and the
     Company thereafter elects to pay cash interest on the Securities, the
     amount equal to the Accreted Principal Amount on the date of restatement of
     the principal amount of the Securities in connection therewith.

          "Share Contribution Agreement" means the Share Contribution Agreement
     dated as of the date hereof between the Parent and the Company.

          "Spin-off" has the meaning specified in Section 1408.

          "Subsidiary" means any person of which at least a majority of the
     outstanding Voting Stock shall at the time directly or indirectly be owned
     or controlled by the Parent or by one or more Subsidiaries or by the Parent
     and one or more Subsidiaries.

          "Tax Event" has the meaning specified in the Securities.

          "Time of Determination" has the meaning specified in Section 1407.

          "trading day" means a day during which trading in securities generally
     occurs on the NYSE or, if the Parent Common Stock is not listed on the
     NYSE, on the principal other national or regional securities exchange on
     which the Parent Common Stock then is listed or, if the Parent Common Stock
     is not listed on a national or regional securities exchange, on the
     National Association of Securities Dealers Automated Quotation System or,
     if the Parent Common Stock is not quoted on the National Association of
     Securities Dealers Automated Quotation System, on the principal other
     market on which the Parent Common Stock is then traded.

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          "trading price" has the meaning specified in the Securities.

          "Two-Year Reset Rate" has the meaning specified in the Securities.

          "Voting Stock" of a person means Capital Stock of such person of the
     class or classes pursuant to which the holders thereof have the general
     voting power under ordinary circumstances to elect at least a majority of
     the board of directors, managers or trustees of such person (irrespective
     of whether or not at the time Capital Stock of any other class or classes
     shall have or might have voting power by reason of the happening of any
     contingency).

     (b) For all purposes of this Supplemental Indenture:

         (i)   capitalized terms used herein without definition shall have the
meanings specified in the Original Indenture;

         (ii)  all references herein to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of the Original
Indenture;

         (iii) the terms "herein", "hereof", "hereunder" and other words of
similar import refer to this Supplemental Indenture; and

         (iv)  in the event of a conflict between any definition set forth in
the Original Indenture and any definition set forth in this Supplemental
Indenture, the definition set forth in this Supplemental Indenture shall
control.

SECTION 2.02.  Amendments.

     Section 902 of the Original Indenture is hereby amended in its entirety,
with respect to the Notes only, to read as follows:

     SECTION 902. With Consent of Holders.

          The Company, the Parent and the Trustee, with the written consent of
     the Holders of at least a majority in aggregate principal amount of the
     Securities at the time outstanding, may amend this Indenture or the
     Securities.  However, without the consent of each Holder affected, an
     amendment or supplement to this Indenture or the Securities may not:

               (1) reduce the principal of or premium on or change the Stated
          Maturity of any Security;

               (2) reduce the rate of or change the time for payment of cash
          interest on, or reduce the accretion rate of, any Security;

               (3) reduce or alter the method of computation of the Redemption
          Price, Purchase Price or Change in Control Purchase Price of any
          Security or the time when such Redemption Price, Purchase Price or

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          Change in Control Purchase Price is payable;

               (4) make the principal of, or cash interest on, any Security
          payable in money or securities other than that stated in the Security
          or change the place of payment;

               (5) make any change that would impair any of the rights granted
          in Section 508 in any material respect;

               (6) modify any provisions of the Support Agreement or the Share
          Contribution Agreement, except for such modifications which do not
          adversely affect the interests of Holders in any material respect; or

               (7) reduce the percentage of principal amount of the outstanding
          Securities of a series required to amend or supplement the Indenture
          or waive any of its provisions.

          It shall not be necessary for the consent of the Holders under this
     Section 902 to approve the particular form of any proposed amendment, but
     it shall be sufficient if such consent approves the substance thereof.

          After an amendment under this Section 902 becomes effective, the
     Trustee shall mail to each Holder a notice briefly describing the
     amendment.

SECTION 2.03.  Redemption and Purchases.

     Article Eleven of the Original Indenture is hereby amended in its entirety,
with respect to the Notes only, to read as follows:

                                  ARTICLE XI

                           REDEMPTION AND PURCHASES

     SECTION 1101.  Company's Right to Redeem; Notices to Trustee.

          The Company, at its option, may redeem the Securities in accordance
     with the provisions of Paragraph 5 of the Securities. If the Company elects
     to redeem Securities pursuant to Paragraph 5 of the Securities, it shall
     notify the Trustee in writing of the Redemption Date, the principal amount
     of Securities to be redeemed and the Redemption Price.

          The Company shall give the notice to the Trustee provided for in this
     Section 1101 by a Company Order at least 35 days before the Redemption Date
     (unless a shorter notice shall be satisfactory to the Trustee).

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     SECTION 1102.  Selection of Securities to Be Redeemed.

          If less than all the Securities are to be redeemed, unless the
     procedures of the Depositary provide otherwise, the Trustee shall select
     the Securities to be redeemed by lot, on a pro rata basis or by another
     method the Trustee considers fair and appropriate (so long as such method
     is not prohibited by the rules of any stock exchange on which the
     Securities are then listed).  The Trustee shall make the selection at least
     15 days but not more than 60 days before the Redemption Date from
     outstanding Securities not previously called for redemption. The Trustee
     may select for redemption portions of the principal amount at maturity of
     Securities that have denominations larger than $1,000.

          Securities and portions of Securities that the Trustee selects shall
     be in principal amounts at maturity of $1,000 or an integral multiple of
     $1,000.  Provisions of this Indenture that apply to Securities called for
     redemption also apply to portions of Securities called for redemption.  The
     Trustee shall notify the Company promptly of the Securities or portions of
     the Securities to be redeemed.

          If any Security selected for partial redemption is converted in part
     before termination of the conversion right with respect to the portion of
     the Security so selected, the converted portion of such Security shall be
     deemed (so far as may be) to be the portion selected for redemption.
     Securities which have been converted during a selection of Securities to be
     redeemed may be treated by the Trustee as outstanding for the purpose of
     such selection.

     SECTION 1103.  Notice of Redemption.

          At least 30 days but not more than 60 days before a Redemption Date,
     the Company shall mail a notice of redemption by first-class mail, postage
     prepaid, to each Holder of Securities to be redeemed.

          The notice shall identify the Securities to be redeemed and shall
     state:

          (1)  the Redemption Date;

          (2)  the Redemption Price;

          (3)  the Conversion Rate;

          (4)  the name and address of the Paying Agent and Conversion Agent;

          (5)  that Securities called for redemption may be converted at any
               time before the close of business one Business Day prior to the
               Redemption Date;

          (6)  that Holders who want to convert their Securities must satisfy
               the requirements set forth in Paragraph 7 of the Securities;

          (7)  that Securities called for redemption must be surrendered to the
               Paying Agent to collect the Redemption Price;

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          (8)  if fewer than all of the outstanding Securities are to be
               redeemed, the certificate numbers, if any, and principal amounts
               of the particular Securities to be redeemed;

          (9)  that, unless the Company defaults in making payment of such
               Redemption Price, cash interest, if any, on Securities called for
               redemption will cease to accrue and the Securities will not
               accrete in value on and after the Redemption Date; and

          (10) the CUSIP number(s) of the Securities.

          At the Company's request, the Trustee shall give the notice of
     redemption in the Company's name and at the Company's expense, provided
     that the Company makes such request at least three Business Days prior to
     the date by which such notice of redemption must be given to Holders in
     accordance with this Section 1103.

     SECTION 1104.  Effect of Notice of Redemption.

          Once notice of redemption is given, Securities called for redemption
     become due and payable on the Redemption Date and at the Redemption Price
     stated in the notice except for Securities which are converted in
     accordance with the terms of this Indenture. Upon surrender to the Paying
     Agent, such Securities shall be paid on the Redemption Date at the
     Redemption Price stated in the notice.

     SECTION 1105.  Deposit of Redemption Price.

          Prior to 10:00 a.m. (New York City time), on the Redemption Date, the
     Company shall deposit with the Paying Agent (or if the Company or a
     Subsidiary or an Affiliate of either of them is the Paying Agent, shall
     segregate and hold in trust as provided in Section 606) money sufficient to
     pay the Redemption Price of all Securities to be redeemed on that date
     other than Securities or portions of Securities called for redemption which
     on or prior thereto have been delivered by the Company to the Trustee for
     cancellation or have been converted.  The Paying Agent shall as promptly as
     practicable return to the Company any money not required for that purpose
     because of conversion of Securities pursuant to Article Fourteen.  If such
     money is then held by the Company in trust and is not required for such
     purpose it shall be discharged from such trust.

     SECTION 1106.  Securities Redeemed in Part.

          Upon surrender of a Security that is redeemed in part, the Company
     shall execute and the Trustee shall authenticate and deliver to the Holder
     a new Security in an authorized denomination equal in principal amount to
     the unredeemed portion of the Security surrendered.

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<PAGE>

     SECTION 1107.  Purchase of Securities by the Company at Option of the
     Holder.

          (a) Securities shall be purchased by the Company pursuant to Paragraph
     6 of the Securities at the option of the Holder on May 15, 2004, May 15,
     2006, May 15, 2011 and May 15, 2016 (each, a "Purchase Date"), at a
     purchase price equal to the Accreted Principal Amount plus accrued and
     unpaid cash interest through the Purchase Date or, if the Company has
     previously exercised its option to pay cash interest instead of accreting
     the principal amount of the Securities following a Tax Event, at a purchase
     price equal to the Restated Principal Amount plus any accrued and unpaid
     cash interest through the Purchase Date (the "Purchase Price").  Purchases
     of Securities hereunder shall be made, at the option of the Holder thereof,
     upon:

               (1) delivery to the Paying Agent by the Holder of a written
          notice of purchase (a "Purchase Notice") during the period beginning
          at any time from the opening of business on the date that is 20
          Business Days prior to the relevant Purchase Date until one Business
          Day prior to such Purchase Date stating:

                    (A) if Definitive Securities have been issued, the
               certificate number of the Security which the Holder will deliver
               to be purchased or, if Definitive Securities have not been
               issued, such Purchase Notice must comply with appropriate
               Depositary procedures,

                    (B) the portion of the principal amount at maturity of the
               Security which the Holder will deliver to be purchased, which
               portion must be in principal amounts at maturity of $1,000 or an
               integral multiple thereof,

                    (C) that such Security shall be purchased by the Company as
               of the Purchase Date pursuant to the terms and conditions
               specified in Paragraph 6 of the Securities and in this Indenture,
               and

                    (D) in the event the Company elects, pursuant to Section
               1107(b), to pay the Purchase Price in shares of Parent Common
               Stock, in whole or in part, but such portion of the Purchase
               Price is ultimately to be paid to such Holder entirely in cash
               because any of the conditions specified in this Indenture to
               payment of the Purchase Price or portion of the Purchase Price in
               shares of Parent Common Stock is not satisfied prior to the close
               of business on the last day prior to the Purchase Date, as set
               forth in Section 1107(d), whether such Holder elects (i) to
               withdraw such Purchase Notice as to some or all of the Securities
               to which such Purchase Notice relates (stating the principal
               amount and certificate numbers, if any, of the Securities as to
               which such withdrawal shall relate), or (ii) to receive cash in
               respect of the entire Purchase Price for all Securities or
               portions of Securities subject to the Purchase Notice to which
               such Purchase Notice relates; and

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               (2) delivery of such Security to the Paying Agent prior to, on or
          after the Purchase Date (together with all necessary endorsements) at
          the offices of the Paying Agent, such delivery being a condition to
          receipt by the Holder of the Purchase Price therefor; provided,
          however, that such Purchase Price shall be so paid pursuant to this
          Section 1107 only if the Security so delivered to the Paying Agent
          shall conform in all respects to the description thereof in the
          related Purchase Notice, as determined by the Company.

          If a Holder, in such Holder's Purchase Notice and in any written
     notice of withdrawal delivered by such Holder pursuant to the terms of
     Section 1109, fails to indicate such Holder's choice with respect to the
     election set forth in clause (D) of Section 1107(a)(1), such Holder shall
     be deemed to have elected to receive cash in respect of the entire Purchase
     Price for all Securities subject to such Purchase Notice in the
     circumstances set forth in such clause (D).

          The Company shall purchase from the Holder thereof, pursuant to this
     Section 1107, a portion of a Security, if the principal amount at maturity
     of such portion is $1,000 or an integral multiple of $1,000.  Provisions of
     this Indenture that apply to the purchase of all of a Security also apply
     to the purchase of such portion of such Security.

          Any purchase by the Company contemplated pursuant to the provisions of
     this Section 1107 shall be consummated by the delivery of the consideration
     to be received by the Holder promptly following, but in no event more than
     five Business Days after, the later of the Purchase Date and the time of
     delivery of the Security.  Unless the Company defaults in making payment on
     Securities for which a Purchase Notice has been submitted when due, cash
     interest, if any, on such Securities will cease to accrue and the
     Securities will cease to accrete in value on the Purchase Date.

          Notwithstanding anything herein to the contrary, any Holder delivering
     to the Paying Agent the Purchase Notice contemplated by this Section
     1107(a) shall have the right to withdraw such Purchase Notice at any time
     prior to the close of business one Business Day prior to the Purchase Date
     by delivery of a written notice of withdrawal to the Paying Agent in
     accordance with Section 1109.

          The Paying Agent shall promptly notify the Company of the receipt by
     it of any Purchase Notice or written notice of withdrawal thereof.

          (b) Company's Right to Elect Manner of Payment of Purchase Price for
     Payment.  The Securities to be purchased on any Purchase Date pursuant to
     Section 1107(a) may be paid for, in whole or in part, at the election of
     the Company, in U.S. legal tender ("cash") or, subject to the conditions
     set forth in Section 1107(d), shares of Parent Common Stock, or in any
     combination of cash and shares of Parent Common Stock; provided that the
     Company will pay cash for fractional interests in shares of Parent Common
     Stock.  The cash payment for fractional shares will be based on the Closing
     Sales Price of the Parent Common Stock on the trading day immediately prior
     to the Purchase Date.  For purposes of determining the existence of
     potential fractional interests, all Securities subject to purchase by the
     Company held by a Holder shall be considered together (no matter how many

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<PAGE>

     separate certificates are to be presented). Each Holder whose Securities
     are purchased pursuant to this Section 1107 shall receive the same
     percentage of cash or shares of Parent Common Stock in payment of the
     Purchase Price for such Securities, except (i) as provided in Section
     1107(d) with regard to the payment of cash in lieu of fractional shares of
     Parent Common Stock and (ii) in the event that the Company is unable to
     purchase the Securities of a Holder or Holders for shares of Parent Common
     Stock because any necessary qualifications or registrations of the shares
     of Parent Common Stock under applicable federal or state securities laws
     cannot be obtained, the Company shall purchase the Securities of such
     Holder or Holders for cash. If the Company elects to pay the Purchase Price
     of the Securities with shares of Parent Common Stock or a combination of
     cash and shares of Parent Common Stock, the Company will deliver the
     Company Notice required by Section 1107(e) by the Company Notice Date. The
     Company may not change its election with respect to the consideration (or
     components or percentages of components thereof) to be paid once the
     Company has given its Company Notice to Holders, except pursuant to Section
     1107(d) in the event of a failure to satisfy, prior to the close of
     business on the last day prior to the Purchase Date, any condition to the
     payment of the Purchase Price, in whole or in part, in shares of Parent
     Common Stock.

          At least three Business Days before each Company Notice Date, the
     Company shall deliver an Officers' Certificate to the Trustee specifying:

               (i) the manner of payment selected by the Company,

               (ii) the information required by Section 1107(e) in the Company
          Notice,

               (iii)  if the Company elects to pay the Purchase Price, or a
          specified percentage thereof, in shares of Parent Common Stock, that
          the conditions to such manner of payment set forth in Section 1107(d)
          have been or will be complied with and

               (iv) whether the Company desires the Trustee to give the Company
          Notice required by Section 1107(e).

          (c) Purchase with Cash. At the option of the Company, the Purchase
     Price of Securities in respect of which a Purchase Notice pursuant to
     Section 1107(a) has been given may be paid by the Company with cash equal
     to the aggregate Purchase Price of such Securities.

          (d) Payment by Delivery of Shares of Parent Common Stock. At the
     option of the Company, the Purchase Price of Securities in respect of which
     a Purchase Notice pursuant to Section 1107(a) has been given, or a
     specified percentage thereof, may be paid by the Company by the delivery of
     a number of shares of Parent Common Stock equal to the quotient obtained by
     dividing (i) the portion of the Purchase Price to be paid in shares of
     Parent Common Stock by (ii) the Market Price of one share of Parent Common
     Stock as determined by the Company in the Company Notice; provided that the

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     Company will pay cash for fractional shares of Parent Common Stock as
     provided in Section 1107(b).

          If the Company elects to purchase the Securities by the issuance of
     shares of Parent Common Stock, the Company Notice, as provided in Section
     1107(e), shall be sent to the Holders (and to beneficial owners as required
     by applicable law) not later than the Company Notice Date.

          The Company's right to exercise its election to purchase Securities
     through the issuance of shares of Parent Common Stock shall be conditioned
     upon:

               (i) the Company's timely giving of the Company Notice of an
          election to purchase all or a specified percentage of the Securities
          with shares of Parent Common Stock as provided herein;

               (ii) the registration of such shares of Parent Common Stock under
          the Securities Act, or the Exchange Act, in each case, if required;

               (iii)  the listing of such shares of Parent Common Stock on the
          principal national securities exchange on which the shares of Parent
          Common Stock are listed;

               (iv) any necessary qualification or registration under applicable
          state securities laws or the availability of an exemption from such
          qualification and registration; and

               (v) the receipt by the Trustee of an Officers' Certificate and an
          Opinion of Counsel each stating that the shares of Parent Common Stock
          to be delivered by the Company in payment of the Purchase Price in
          respect of Securities are validly issued, fully paid and non-
          assessable and, to the best of such counsel's knowledge, free from
          preemptive rights, and, in the case of such Officers' Certificate,
          stating that the conditions above and the condition set forth in the
          second succeeding sentence have been satisfied and, in the case of
          such Opinion of Counsel, stating that the conditions in clauses (i)
          through (iv) above have been satisfied.

          Such Officers' Certificate shall also set forth the number of shares
     of Parent Common Stock to be issued for each $1,000 principal amount at
     maturity of the Securities.  The Company may pay the Purchase Price (or any
     portion thereof) in shares of Parent Common Stock only if the information
     necessary to calculate the Market Price is published in a daily newspaper
     of national circulation or other widely disseminated public source. If the
     foregoing conditions are not satisfied with respect to a Holder or Holders
     prior to the close of business on the Business Day prior to the Purchase
     Date, and the Company has elected to purchase the Securities pursuant to
     this Section 1107 through the issuance of shares of Parent Common Stock,
     the Company shall pay the entire Purchase Price of the Securities of such
     Holder or Holders in cash.

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          The "Market Price" means the average of the Closing Sales Prices of
     the Parent Common Stock for the five trading day period ending on the third
     Business Day prior to the applicable Purchase Date (if the third Business
     Day prior to the applicable Purchase Date is a trading day, or if not, then
     on the last trading day prior to the third Business Day), appropriately
     adjusted to take into account the occurrence, during the period commencing
     on the first of the trading days during the five trading day period and
     ending on the Purchase Date, of any event described in Sections 1406, 1407,
     1408 or 1409 that would require adjustment of the Conversion Rate in
     respect of the Parent Common Stock; subject, however, to the conditions set
     forth in Sections 1410 and 1411.

          The "Closing Sales Price" of Parent Common Stock on any date means the
     closing per share sale price (or, if no closing sales price is reported,
     the average of the bid and ask prices or, if more than one in either case,
     the average of the average bid and the average asked prices) on such date
     as reported in composite transactions for the principal U.S. securities
     exchange on which Parent Common Stock is traded or, if Parent Common Stock
     is not listed on a U.S. national or regional securities exchange, as
     reported by the Nasdaq system.  In the absence of such quotations, the
     Company shall be entitled to determine the Closing Sales Price on the basis
     of such quotations as it considers appropriate.

          Upon determination of the actual number of shares of Parent Common
     Stock to be issued upon repurchase of Securities, the Company will
     disseminate a press release through Reuters Economic Services or Bloomberg
     Business News containing this information or publish the information on the
     Parent's web site or through such other public medium as the Parent may use
     at that time.

          (e) Notice of Election.  If the Company elects to pay the Purchase
     Price of Securities to be purchased pursuant to Section 1107(a) with shares
     of Parent Common Stock or a combination of cash and shares of Parent Common
     Stock, the Company shall give notice to Holders setting forth information
     specified in this Section 1107(e) (the "Company Notice").  The Company
     Notice shall:

               (1) state that each Holder will receive shares of Parent Common
          Stock with a Market Price determined as of a specified date prior to
          the Purchase Date equal to the Purchase Price of the Securities held
          by such Holder or a specified percentage thereof (except any cash
          amount to be paid in lieu of fractional shares);

               (2) set forth the method of calculating the Market Price of the
          shares of Parent Common Stock;

               (3) state that because the Market Price of shares of Parent
          Common Stock will be determined prior to the Purchase Date, Holders of
          the Securities will bear the market risk with respect to the value of
          the shares of Parent Common Stock to be received from the date such
          Market Price is determined to the Purchase Date; and

                                  13
<PAGE>

               (4) set forth the procedures that a Holder must follow to
          exercise its put rights under this Section 1107 and the procedures for
          withdrawing a Purchase Notice (including, without limitation, a
          conditional withdrawal pursuant to the terms of Section 1107(a)(1)(D)
          or Section 1109).

          The Company Notice shall be sent to Holders (and to beneficial owners
     as required by applicable law) not less than 20 Business Days prior to the
     Purchase Date (the "Company Notice Date").

          At the Company's request, the Trustee shall give such Company Notice
     in the Company's name and at the Company's expense; provided, however,
     that, in all cases, the text of such Company Notice shall be prepared by
     the Company.

          Simultaneously with such Company Notice, the Company shall disseminate
     a press release through Reuters Economic Services or Bloomberg Business
     News containing this information or publish the information on the Parent's
     web site or through such other public medium as the Parent may use at that
     time.

          (f) Covenants of the Company.  All shares of Parent Common Stock
     delivered upon purchase of the Securities shall be newly issued shares or
     treasury shares, shall be duly authorized, validly issued, fully paid and
     nonassessable, and shall be free from preemptive rights and free of any
     lien or adverse claim.

          (g) Procedure upon Purchase. The Company shall deposit cash (in
     respect of a cash purchases under this Section 1107 or for fractional
     interests, as applicable) or shares of Parent Common Stock, or a
     combination thereof, as applicable, at the time and in the manner as
     provided in Section 1110, sufficient to pay the aggregate Purchase Price of
     all Securities to be purchased pursuant to this Section 1107.  As soon as
     practicable after the Purchase Date, the Company shall deliver to each
     Holder entitled to receive shares of Parent Common Stock through the Paying
     Agent, a certificate for the number of full shares of Parent Common Stock
     issuable in payment of the Purchase Price and cash in lieu of any
     fractional interests.  The person in whose name the certificate for the
     shares of Parent Common Stock is registered shall be treated as a holder of
     record of Parent Common Stock on the Business Day following the Purchase
     Date. Subject to Section 1107(d), no payment or adjustment will be made for
     dividends on the shares of Parent Common Stock the record date for which
     occurred on or prior to the Purchase Date.

          (h) Taxes.  If a Holder of a purchased Security is paid in shares of
     Parent Common Stock, the Company shall pay any documentary, stamp or
     similar issue or transfer tax due on such issue of Parent Common Stock.
     However, the Holder shall pay any such tax which is due because the Holder
     requests the Parent Common Stock to be issued in a name other than the
     Holder's name. The Paying Agent may refuse to deliver the certificates
     representing the shares of Parent Common Stock being issued in a name other
     than the Holder's name until the Paying Agent receives a sum sufficient to
     pay any tax which will be due because the shares of Parent Common Stock are
     to be issued in a name other than the Holder's name. Nothing herein shall
     preclude any income tax withholding required by law or regulations.

                                      14
<PAGE>

     SECTION 1108.  Purchase of Securities at Option of the Holder upon Change
     in Control.

          (a) If a Change in Control occurs, the Securities not previously
     purchased by the Company or any portion of the principal amount thereof
     shall be purchased by the Company, at the option of the Holder thereof, at
     a purchase price equal to the Accreted Principal Amount plus any accrued
     and unpaid cash interest to the date that is 45 days after the date the
     Company shall have mailed notice of the occurrence of a Change in Control
     pursuant to Section 1108(b) (the "Change in Control Purchase Date") or, if
     the Company has previously exercised its option to pay cash interest
     instead of accreting the principal amount of the Securities following a Tax
     Event, at a purchase price equal to the Restated Principal Amount plus any
     accrued and unpaid cash interest to the Change in Control Purchase Date
     (the "Change in Control Purchase Price"), subject to satisfaction by or on
     behalf of the Holder of the requirements set forth in Section 1108(c).

          A "Change in Control" shall be deemed to have occurred at such time
     after the Securities are originally issued as either of the following
     events shall occur:

               (i) any person, including any syndicate or group deemed to be a
          "person" under Section 13(d)(3) of the Exchange Act, acquires
          beneficial ownership, directly or indirectly, through a purchase,
          merger or other acquisition transaction or series of transactions, of
          shares of Parent Common Stock entitling the person to exercise 50% or
          more of the total voting power of all shares of the Parent Common
          Stock that is entitled to vote generally in elections of directors,
          other than an acquisition by the Parent, any of its Subsidiaries or
          any of its employee benefit plans; or

               (ii) the Parent merges or consolidates with or into any other
          person, any merger of another person into the Parent, or the Parent
          conveys, sells, transfers or leases all or substantially all of its
          assets to another person, other than any transaction: (A) that does
          not result in any reclassification, conversion, exchange or
          cancellation of outstanding shares of the Parent's Capital Stock, (B)
          pursuant to which the holders of Parent Common Stock immediately prior
          to the transaction have the entitlement to exercise, directly or
          indirectly, 50% or more of the total voting power of all shares of
          Parent Common Stock entitled to vote generally in the election of
          directors of the continuing or surviving corporation immediately after
          the transaction or (C) which is effected solely to change the Parent's
          jurisdiction of incorporation and results in a reclassification,
          conversion or exchange of outstanding shares of Parent Common Stock
          solely into shares of common stock of the surviving corporation.

     Notwithstanding the foregoing provisions of this Section 1108, a Change in
     Control shall not be deemed to have occurred if (A) the Closing Sales Price
     of Parent Common Stock for any five trading days within the period of 10
     consecutive trading days ending immediately after the later of the Change
     in Control or the public announcement of the Change in Control, in the case
     of a Change in Control relating to an acquisition of Capital Stock, or the
     period of 10 consecutive trading days ending immediately before the Change

                                      15
<PAGE>

     in Control, in the case of a Change in Control relating to a merger,
     consolidation or asset sale, equals or exceeds 105% of the Accreted
     Conversion Price of the Securities in effect on each of those trading days
     or (B) all of the consideration in a merger or consolidation otherwise
     constituting a Change in Control under clause (i) and/or clause (ii) above
     (other than cash payments not to exceed 5% of the total value of such
     merger or consolidation (excluding cash payments for fractional shares and
     cash payments made pursuant to dissenters' appraisal rights)) consists of
     shares of common stock traded on a national securities exchange or quoted
     on the Nasdaq National Market (or will be so traded or quoted immediately
     following the merger or consolidation) and as a result of the merger or
     consolidation the Securities become convertible into common stock of the
     surviving corporation.

          For purposes of this Section 1108, whether a person is a "beneficial
     owner" shall be determined in accordance with Rule 13d-3 under the Exchange
     Act and "person" includes any syndicate or group that would be deemed to be
     a "person" under Section 13(d)(3) of the Exchange Act.

          (b) No later than 30 days after the occurrence of a Change in Control,
     the Company shall mail a written notice of the Change in Control by first-
     class mail to the Trustee and to each Holder (and to beneficial owners as
     required by applicable law).  The notice shall include a form of Change in
     Control Purchase Notice to be completed by the Holder and shall state:

               (1)  briefly, the events causing a Change in Control and the date
                    of such Change in Control;

               (2)  the date by which the Change in Control Purchase Notice
                    pursuant to this Section 1108 must be given;

               (3)  the Change in Control Purchase Date;

               (4)  the Change in Control Purchase Price;

               (5)  the name and address of the Paying Agent;

               (6)  that the Securities as to which a Change in Control Purchase
                    Notice has been given may be converted if they are otherwise
                    convertible pursuant to Article Fourteen hereof only if the
                    Change in Control Purchase Notice has been withdrawn in
                    accordance with the terms of this Indenture;

               (7)  the procedures for withdrawing a Change in Control Purchase
                    Notice;

               (8)  that the Securities must be surrendered to the Paying Agent
                    to collect payment;

                                      16
<PAGE>

               (9)  that the Change in Control Purchase Price for any Security
                    as to which a Change in Control Purchase Notice has been
                    duly given and not withdrawn will be paid promptly following
                    the later of the Change in Control Purchase Date and the
                    time of surrender of such Security;

               (10) that, unless the Company defaults in making payment of such
                    Change in Control Purchase Price when due, cash interest, if
                    any, on Securities surrendered for purchase by the Company
                    will cease to accrue and the Securities will cease to
                    accrete in value on and after the Change in Control Purchase
                    Date; and

               (11) the CUSIP number(s) of the Securities.

          (c) In order to exercise its rights specified in Section 1108(a), a
     Holder must deliver a written notice requesting purchase of all or a
     portion of its Securities (a "Change in Control Purchase Notice") to the
     Paying Agent at any time on or prior to the 30th day after the date the
     Company delivers its written notice of the occurrence of a Change in
     Control, stating:

               (1)  the certificate number(s) of the Securities which the Holder
                    will deliver to be purchased or, if Definitive Securities
                    have not been issued, such information as shall be provided
                    pursuant to appropriate Depositary procedures;

               (2)  the portion of the principal amount of the Security which
                    the Holder will deliver to be purchased, which portion must
                    be $1,000 or an integral multiple thereof; and

               (3)  that such Security shall be purchased pursuant to the terms
                    and conditions specified in Paragraph 6 of the Securities.

          The timely delivery to the Paying Agent of the Change in Control
     Purchase Notice and the delivery of such Security (together with all
     necessary endorsements) at the offices of the Paying Agent shall be a
     condition to the receipt by the Holder of the Change in Control Purchase
     Price therefor; provided, however, that, in the case of delivery of such
     Security to the Paying Agent, such Change in Control Purchase Price shall
     be so paid pursuant to this Section 1108 only if the Security so delivered
     to the Paying Agent shall conform in all respects to the description
     thereof set forth in the related Change in Control Purchase Notice.

          The Company shall purchase from the Holder thereof, pursuant to this
     Section 1108, a portion of a Security if the principal amount at maturity
     of such portion is $1,000 or an integral multiple of $1,000. Provisions of
     this Indenture that apply to the purchase of all of a Security also apply
     to the purchase of such portion of such Security.

                                      17
<PAGE>

          Any purchase by the Company contemplated pursuant to the provisions of
     this Section 1108 shall be consummated by the delivery of the consideration
     to be received by the Holder on the Change of Control Purchase Date.

          Notwithstanding anything herein to the contrary, any Holder delivering
     to the Paying Agent the Change in Control Purchase Notice contemplated by
     this Section 1108(c) shall have the right to withdraw such Change in
     Control Purchase Notice at any time prior to the close of business one
     Business Day prior to the Change in Control Purchase Date by delivery of a
     written notice of withdrawal to the Paying Agent in accordance with Section
     1109.

          The Paying Agent shall promptly notify the Company of the receipt by
     it of any Change in Control Purchase Notice or written withdrawal thereof.

     SECTION 1109.  Effect of Purchase Notice or Change in Control Purchase
     Notice.

          Upon receipt by the Paying Agent of the Purchase Notice or Change in
     Control Purchase Notice specified in Section 1107(a) or Section 1108(c), as
     applicable, the Holder of the Security in respect of which such Purchase
     Notice or Change in Control Purchase Notice, as the case may be, was given
     shall (unless such Purchase Notice or Change in Control Purchase Notice, as
     the case may be, is withdrawn as specified in the following two paragraphs)
     thereafter be entitled to receive solely the Purchase Price or Change in
     Control Purchase Price, as the case may be, with respect to such Security.
     Such Purchase Price shall be paid to such Holder, subject to receipts of
     funds and/or securities by the Paying Agent, promptly following, but in no
     event more than five Business Days after, the later of (x) the Purchase
     Date with respect to such Security (provided that the conditions in Section
     1107(a) have been satisfied) and (y) the time of delivery of such Security
     to the Paying Agent by the Holder thereof in the manner required by Section
     1107(a), and such Change in Control Purchase Price shall be paid to such
     Holder, subject to receipts of funds and/or securities by the Paying Agent,
     on the later of (x) the Change in Control Purchase Date with respect to
     such Security (provided that the conditions in Section 1108(c) have been
     satisfied) and (y) the time of delivery of such Security to the Paying
     Agent by the Holder thereof in the manner required by Section 1108(c).
     Securities in respect of which a Purchase Notice or Change in Control
     Purchase Notice has been given by the Holder thereof may not be converted
     pursuant to Article Fourteen hereof on or after the date of the delivery of
     such Purchase Notice or Change in Control Purchase Notice unless such
     Purchase Notice or Change in Control Purchase Notice has first been validly
     withdrawn as specified in the following paragraph.

          A Purchase Notice or Change in Control Purchase Notice may be
     withdrawn by the Holder by means of a written notice of withdrawal
     delivered to the office of the Paying Agent at any time prior to the close
     of business one Business Day prior to the Purchase Date or the Change in
     Control Purchase Date, as the case may be, specifying:

               (1)  the certificate number, if any, of the Security in respect
                    of which such notice of withdrawal is being submitted or, if
                    Definitive Securities have not been issued, such information

                                      18
<PAGE>

                    as shall be provided pursuant to appropriate Depositary
                    procedures,

               (2)  the principal amount at maturity of the Security with
                    respect to which such notice of withdrawal is being
                    submitted, and

               (3)  the principal amount at maturity, if any, of such Security
                    which remains subject to the original Purchase Notice or
                    Change in Control Purchase Notice, as the case may be, and
                    which has been or will be delivered for purchase by the
                    Company.

          There shall be no purchase of any Securities pursuant to Section 1107
     or 1108 if there has occurred (prior to, on or after, as the case may be,
     the giving, by the Holders of such Securities, of the required Purchase
     Notice or Change in Control Purchase Notice, as the case may be) and is
     continuing an Event of Default (other than a default in the payment of the
     Purchase Price or Change in Control Purchase Price, as the case may be,
     with respect to such Securities). The Paying Agent will promptly return to
     the respective Holders thereof any Securities (x) with respect to which a
     Purchase Notice or Change in Control Purchase Notice, as the case may be,
     has been withdrawn in compliance with this Indenture, or (y) held by it
     during the continuance of an Event of Default (other than a default in the
     payment of the Purchase Price or Change in Control Purchase Price, as the
     case may be, with respect to such Securities) in which case, upon such
     return, the Purchase Notice or Change in Control Purchase Notice with
     respect thereto shall be deemed to have been withdrawn.

     SECTION 1110.  Deposit of Purchase Price or Change in Control Purchase
     Price.

          Prior to 10:00 a.m. (local time in the City of New York) on the fifth
     Business Day following the Purchase Date or prior to 10:00 a.m. (local time
     in the City of New York) on the Change in Control Purchase Date, as the
     case may be, the Company shall deposit with the Paying Agent (or, if the
     Company or a Subsidiary or an Affiliate of either of them is acting as the
     Paying Agent, shall segregate and hold in trust as provided in Section 606)
     an amount of cash (in immediately available funds if deposited on such
     Business Day) or Parent Common Stock, if permitted hereunder, or both,
     sufficient to pay the aggregate Purchase Price or Change in Control
     Purchase Price, as the case may be, of all the Securities or portions
     thereof which are to be purchased as of the Purchase Date or Change in
     Control Purchase Date, as the case may be.

     SECTION 1111.  Securities Purchased in Part.

          Any Security which is to be purchased only in part shall be
     surrendered at the office of the Paying Agent (with, if the Company or the
     Trustee so requires, due endorsement by, or a written instrument of
     transfer in form satisfactory to the Company and the Trustee duly executed
     by, the Holder thereof or such Holder's attorney duly authorized in
     writing) and the Company shall execute and the Trustee shall authenticate
     and deliver to the Holder of such Security, without service charge, a new
     Security or Securities, of any authorized denomination as requested by such
     Holder in aggregate principal amount equal to, and in exchange for, the

                                      19
<PAGE>

     portion of the
     principal amount of the Security so surrendered which is not purchased.

     SECTION 1112.  Repayment to the Company.

          The Paying Agent and the Trustee shall return to the Company any cash
     or shares of Parent Common Stock that remain unclaimed for two years,
     subject to applicable unclaimed property laws, held by them for the payment
     of the Purchase Price or Change in Control Purchase Price, as the case may
     be; provided, however, that to the extent that the aggregate amount of cash
     or shares of Parent Common Stock deposited by the Company pursuant to
     Section 1110 exceeds the aggregate Purchase Price or Change in Control
     Purchase Price, as the case may be, of the Securities or portions thereof
     which the Company is obligated to purchase as of the Purchase Date or
     Change in Control Purchase Date, as the case may be, then, unless otherwise
     agreed in writing with the Company, promptly after the Business Day
     following the Purchase Date or Change in Control Purchase Date, as the case
     may be, the Paying Agent and the Trustee shall return any such excess to
     the Company.

SECTION 2.04.  Conversion.

     The Original Indenture is hereby amended, with respect to the Notes only,
by adding a new Article Fourteen immediately following Article Thirteen of the
Original Indenture, to read as follows:

                                  ARTICLE XIV

                                  CONVERSION

     SECTION 1401.  Conversion Privilege.

          A Holder of a Security may convert such Security into shares of Parent
     Common Stock at any time during the periods stated in paragraph 7 of the
     Securities.  The number of shares of Parent Common Stock issuable upon
     conversion of a Security per $1,000 of principal amount at maturity thereof
     (the "Conversion Rate") shall be that set forth in paragraph 7 in the
     Securities, subject to adjustment as herein set forth.

          A Holder may convert a portion of the principal amount at maturity of
     a Security if the portion is $1,000 or an integral multiple of $1,000.
     Provisions of this Indenture that apply to conversion of all of a Security
     also apply to conversion of a portion of the Security.

     SECTION 1402.  Conversion Procedure.

          To convert a Security, a Holder must satisfy the requirements in
     paragraph 7 of the Securities.  The first Business Day on which the Holder
     satisfies all those requirements is the conversion date (the "Conversion
     Date").  As soon as practicable after the Conversion Date, the Company
     shall deliver to the Holder, through the Conversion Agent, a certificate
     for the number of whole shares of Parent Common Stock issuable upon the

                                      20
<PAGE>

     conversion and cash in lieu of any fractional share determined pursuant to
     Section 1403. The Person in whose name the certificate is registered shall
     be treated as the stockholder of record as of the close of business on the
     Conversion Date. Upon conversion of a Security, such Person shall no longer
     be a Holder of such Security.

          No payment or adjustment will be made for dividends on, or other
     distributions with respect to, any Parent Common Stock except as provided
     in this Article Fourteen.  On conversion of a Security, no accrued and
     unpaid cash interest, if any, or amounts reflecting accretion of the
     Securities included in the Accreted Principal Amount or the Restated
     Principal Amount (as the case may be), in each case through the Conversion
     Date, will be payable with respect to the converted Security and no such
     cash interest or amounts reflecting accretion of the Securities shall be
     deemed to be canceled, extinguished or forfeited, but rather shall be
     deemed to be paid in full to the Holder thereof through delivery of the
     shares of Parent Common Stock (together with the cash payment, if any, in
     lieu of fractional shares) in exchange for the Security being converted
     pursuant to the provisions hereof; and the fair market value of such shares
     of Parent Common Stock (together with any such cash payment in lieu of
     fractional shares) shall be treated as issued, to the extent thereof, first
     in exchange for accrued and unpaid cash interest, if any, through the
     Conversion Date, and the balance, if any, of such fair market value of such
     shares of Parent Common Stock (and any such cash payment) shall be treated
     as issued for the Accreted Principal Amount or the Restated Principal
     Amount (as the case may be) of the Security being converted pursuant to the
     provisions hereof.  The Company will not adjust the conversion ratio to
     account for accrued and unpaid cash interest, if any, or for amounts
     reflecting accretion of the Securities included in the Accreted Principal
     Amount or the Restated Principal Amount (as the case may be).  If a Holder
     converts more than one Security at the same time, the number of shares of
     Parent Common Stock issuable upon the conversion shall be based on the
     total principal amount of the Securities converted.

          If the last day on which a Security may be converted is a not a
     Business Day in a place where a Conversion Agent is located, the Security
     may be surrendered on the next succeeding day that is a Business Day.

          Upon surrender of a Security that is converted in part, the Company
     shall execute, and the Trustee shall authenticate and deliver to the
     Holder, a new Security in an authorized denomination equal in principal
     amount to the unconverted portion of the Security surrendered.

          If a Holder submits a Security for conversion after the Company has
     elected to exercise its option to pay cash interest instead of accreting
     the principal amount of the Securities following a Tax Event, or if the
     Company is required to make a cash payment pursuant to an increased
     accretion rate, in either case between a record date and the opening of
     business on the next Interest Payment Date (except for Securities or
     portions of Securities called for redemption on a Purchase Date occurring
     during the period from the close of business on a record date and ending on
     the close of business on the next Interest Payment Date, or if such
     Interest Payment Date is not a Business Day, the next Business Day after

                                      21
<PAGE>

     the Interest Payment Date), such Holder shall pay to the Company an amount
     equal to cash interest payable on the converted principal amount.

     SECTION 1403.  Fractional Shares.

          Holders will not receive fractional shares upon conversion of a
     Security.  Instead, the Holder will receive a cash payment for fractional
     shares based on the Closing Sales Price of the Parent Common Stock on the
     trading day immediately preceding the Conversion Date.

     SECTION 1404.  Taxes on Conversion.

          If a Holder submits a Security for conversion, the Company shall pay
     any documentary, stamp or similar issue or transfer tax due on the delivery
     of shares of Parent Common Stock upon the conversion.  However, the Holder
     shall pay any such tax which is due because the Holder requests the shares
     to be registered in a name other than the Holder's name.  The Conversion
     Agent may refuse to deliver the certificates representing the shares of
     Parent Common Stock being registered in a name other than the Holder's name
     until the Conversion Agent receives a sum sufficient to pay any tax which
     will be due because the shares are to be registered in a name other than
     the Holder's name.  Nothing herein shall preclude any tax withholding
     required by law or regulations.

     SECTION 1405.  Parent Common Stock.

          All shares of Parent Common Stock delivered by the Conversion Agent on
     behalf of the Company upon conversion of the Securities shall be duly and
     validly issued and fully paid and nonassessable, and shall be free from
     preemptive rights and free of any lien or adverse claim.  Each of the
     Company and the Parent will endeavor promptly to comply with all federal
     and state securities laws regulating the offer and delivery of shares of
     Parent Common Stock upon conversion of Securities, if any, and the Parent
     will list or cause to have quoted such shares of Parent Common Stock on
     each national securities exchange or in the over-the-counter market or such
     other market on which the shares of Parent Common Stock are then listed or
     quoted.

     SECTION 1406.  Adjustment for Change in Capital Stock.

          If, after the Issue Date of the Securities, the Parent:

               (1) pays a dividend or makes another distribution to all holders
          of the Parent Common Stock on the Parent Common Stock payable
          exclusively in shares of Parent Common Stock;

               (2) subdivides the outstanding shares of Parent Common Stock into
          a greater number of shares of Parent Common Stock;

               (3) combines the outstanding shares of Parent Common Stock into a
          smaller number of shares Parent Common Stock; or

                                      22
<PAGE>

               (4) pays a dividend or makes other distributions to all holders
          of the Parent Common Stock consisting of Capital Stock of the Parent
          (other than those rights and warrants referred to in Section 1411
          relating to stockholders rights plans),

     then the Conversion Rate in effect immediately prior to such action shall
     be adjusted so that the Holder of a Security thereafter converted will
     receive the number of shares of Capital Stock of the Parent which such
     Holder would have owned immediately following such action if such Holder
     had converted the Security immediately prior to such action.

          The adjustment shall become effective immediately after the record
     date in the case of a dividend or distribution and immediately after the
     effective date in the case of a subdivision, combination or
     reclassification.

          If after an adjustment a Holder of a Security upon conversion of such
     Security may receive shares of two or more classes of Capital Stock of the
     Parent, the Conversion Rate shall thereafter be subject to adjustment upon
     the occurrence of an action taken with respect to any such class of Capital
     Stock as is contemplated by this Article Fourteen with respect to the
     shares of Parent Common Stock, on terms comparable to those applicable to
     shares of Parent Common Stock in this Article Fourteen.

     SECTION 1407.  Adjustment for Rights Issue.

          If after the Issue Date of the Securities, the Parent distributes any
     rights or warrants to all holders of shares of its Parent Common Stock
     entitling them to purchase shares of Parent Common Stock at a price per
     share less than the Average Sale Price as of the Time of Determination, the
     Conversion Rate shall be adjusted in accordance with the formula:

          R'  =  R  x        (O + N)
                       -------------------
                         (O + (N x P)/M)

          where:

          R' =   the adjusted Conversion Rate.

          R  =   the current Conversion Rate.

          O  =   the number of shares of Parent Common Stock outstanding on the
                 record date for the distribution to which this Section 1407 is
                 being applied.

          N  =   the number of additional shares of Parent Common Stock offered
                 pursuant to the distribution.

          P  =   the offering price per share of the additional shares.

          M =    the Average Sale Price, minus, in the case of (i) a
                 distribution to which Section 1406(4) applies or (ii) a
                 distribution to which Section 1408 applies, for which, in each

                                      23
<PAGE>

                 case, (x) the record date shall occur on or before the record
                 date for the distribution to which this Section 1407 applies
                 and (y) the Ex-Dividend Time shall occur on or after the date
                 of the Time of Determination for the distribution to which this
                 Section 1407 applies, the fair market value (on the record date
                 for the distribution to which this Section 1407 applies) of:

                  (1) the Capital Stock of the Parent distributed in respect of
              each share of Parent Common Stock in such Section 1406(4)
              distribution; and

                  (2) the assets of the Parent or debt securities or any rights,
              warrants or options to purchase securities of the Parent
              distributed in respect of each share of Parent Common Stock in
              such Section 1408 distribution.

          The Board of Directors shall determine fair market values for the
     purposes of this Section 1407, except as Section 1408 otherwise provides in
     the case of a Spin-off.

          "Average Sale Price" means the average of the Closing Sales Prices of
     the shares of Parent Common Stock for the shorter of:

               (i) 30 consecutive trading days ending on the last full trading
          day prior to the Time of Determination with respect to the rights,
          warrants or options or distribution in respect of which the Average
          Sale Price is being calculated;

               (ii) the period (x) commencing on the date next succeeding the
          first public announcement of (a) the issuance of rights, warrants or
          options or (b) the distribution, in each case, in respect of which the
          Average Sale Price is being calculated and (y) proceeding through the
          last full trading day prior to the Time of Determination with respect
          to the rights, warrants or options or distribution in respect of which
          the Average Sale Price is being calculated (excluding days within such
          period, if any, which are not trading days); or

               (iii)  the period, if any, (x) commencing on the date next
          succeeding the Ex-Dividend Time with respect to the next preceding (a)
          issuance of rights, warrants or options or (b) distribution, in each
          case, for which an adjustment is required by the provisions of Section
          1406(4), 1407, 1408 or 1409 and (y) proceeding through the last full
          trading day prior to the Time of Determination with respect to the
          rights, warrants or options or distribution in respect of which the
          Average Sale Price is being calculated (excluding days within such
          period, if any, which are not trading days).

          In the event that the Ex-Dividend Time (or in the case of a
     subdivision, combination or reclassification, the effective date with
     respect thereto) with respect to a dividend, subdivision, combination or
     reclassification to which Section 1406(1), (2) or (3) applies occurs during
     the period applicable for calculating "Average Sale Price" pursuant to the
     definition in the preceding sentence, "Average Sale Price" shall be
     calculated for such period in a manner determined by the Board of Directors
     to reflect the impact of such dividend, subdivision, combination or

                                      24
<PAGE>

     reclassification on the Closing Sales Price of the shares of Parent Common
     Stock during such period.

          "Time of Determination" means the time and date of the earlier of (i)
     the determination of shareholders entitled to receive rights, warrants or
     options or a distribution, in each case, to which Section 1407 or 1408
     applies and (ii) the Ex-Dividend Time.

          "Ex-Dividend Time" means the time immediately prior to the
     commencement of "ex-dividend" trading for such rights, warrants or options
     or distribution on a national or regional exchange or market on which the
     shares of Parent Common Stock are then listed or quoted.

          The adjustment shall become effective immediately after the record
     date for the determination of shareholders entitled to receive the rights,
     warrants or options to which this Section 1407 applies.  If all of the
     shares of Parent Common Stock subject to such rights, warrants or options
     have not been issued when such rights, warrants or options expire, then the
     Conversion Rate shall promptly be readjusted to the Conversion Rate which
     would then be in effect had the adjustment upon the issuance of such
     rights, warrants or options been made on the basis of the actual number of
     shares of Parent Common Stock issued upon the exercise of such rights,
     warrants or options.

          No adjustment shall be made under this Section 1407 if the application
     of the formula stated above in this Section 1407 would result in a value of
     R' that is equal to or less than the value of R.

     SECTION 1408.  Adjustment for Other Distributions.

          If, after the Issue Date of the Securities, the Parent distributes to
     all holders of its shares of Parent Common Stock any of its debt,
     securities or assets or any rights, warrants or options to purchase
     securities of the Parent (including securities or cash, but excluding (x)
     distributions of Capital Stock referred to in Section 1406 and
     distributions of rights, warrants or options referred to in Section 1407
     and (y) cash dividends or other cash distributions unless such cash
     dividends or other cash distributions are Extraordinary Cash Dividends) the
     Conversion Rate shall be adjusted, subject to the provisions of the last
     paragraph of this Section 1408, in accordance with the formula:

          R' =  R x M
                -----
                (M - F)

          where:

          R' = the adjusted Conversion Rate.

          R  = the current Conversion Rate.

          M  = the Average Sale Price, minus, in the case of a distribution to
               which Section 1406(4) applies, for which (i) the record date
               shall occur on or before the record date for the distribution

                                      25
<PAGE>

               to which this Section 1408 applies and (ii) the Ex-Dividend Time
               shall occur on or after the date of the Time of Determination for
               the distribution to which this Section 1408 applies, the fair
               market value (on the record date for the distribution to which
               this Section 1408 applies) of any Capital Stock of the Parent
               distributed in respect of each share of Parent Common Stock in
               such Section 1406(4) distribution.

          F =  the fair market value (on the record date for the distribution to
               which this Section 1408 applies) of the assets, securities,
               rights, warrants or options to be distributed in respect of each
               share of Parent Common Stock in the distribution to which this
               Section 1408 is being applied (including, in the case of cash
               dividends or other cash distributions giving rise to an
               adjustment, all such cash distributed concurrently).

          In the event the Parent distributes shares of Capital Stock of a
     Subsidiary, the Conversion Rate will be adjusted, if at all, based on the
     market value of the Subsidiary stock so distributed relative to the market
     value of the Parent Common Stock, as discussed below.  The Board of
     Directors shall determine fair market values for the purposes of this
     Section 1408, except that in respect of a dividend or other distribution of
     shares of Capital Stock of any class or series, or similar equity
     interests, of or relating to a Subsidiary or other business unit of the
     Parent (a "Spin-off"), the fair market value of the securities to be
     distributed shall equal the average of the daily Closing Sales Prices of
     those securities for the five consecutive trading days commencing on and
     including the sixth day of trading of those securities after the
     effectiveness of the Spin-off and the average of the Closing Sales Prices
     shall mean the average Closing Sales Prices for the Parent Common Stock for
     the same five trading days.  In the event, however, that an underwritten
     initial public offering of the securities in the Spin-off occurs
     simultaneously with the Spin-off, fair market value of the securities
     distributed in the Spin-off shall mean the initial public offering price of
     such securities and the Average Sale Price, for purposes of this sentence,
     shall mean the Closing Sales Price for the Parent Common Stock on the same
     trading day.

          Assuming that a distribution referred to in this Section 1408 shall
     have occurred, the adjustment referred to in this Section 1408 shall become
     effective as of a date and time immediately after the record date for the
     determination of shareholders entitled to receive the distribution to which
     this Section 1408 applies, except that an adjustment related to a Spin-off
     shall become effective at the earlier to occur of (i) 10 trading days after
     the effective date of the Spin-off and (ii) the initial public offering of
     the securities distributed in the Spin-off.

          For purposes of this Section 1408, the term "Extraordinary Cash
     Dividend" shall mean any all-cash distributions in an aggregate amount
     that, together with (i) any cash and the fair market value of any other
     consideration payable in respect of any tender offer by the Parent or any
     of its Subsidiaries for shares of Parent Common Stock consummated within
     the preceding 12 months not triggering a Conversion Rate adjustment and
     (ii) all other all-cash distributions to all or substantially all holders
     of Parent Common Stock made within the preceding 12 months not triggering a
     Conversion Rate adjustment, exceeds an amount equal to 15% of the market

                                      26
<PAGE>

     capitalization of Parent Common Stock on the Business Day immediately
     preceding the day on which the Parent declares the distribution.

          If, upon the date prior to the Ex-Dividend Time with respect to a cash
     dividend on the shares of Parent Common Stock, the aggregate amount of such
     cash dividend together with the amounts of all other cash dividends or cash
     distributions gives rise to an adjustment of the Conversion Rate pursuant
     to Section 1406, then such cash dividend together with all such other cash
     dividends or cash distributions shall, for purposes of applying the formula
     set forth above in this Section 1408, cause the value of "F" to equal (y)
     the aggregate amount of such cash dividend together with the amounts of
     such other cash dividends or cash distributions, minus (z) the aggregate
     amount of all cash dividends or cash distributions for which a prior
     adjustment in the Conversion Rate was previously made.

          In the event that, with respect to any distribution to which this
     Section 1408 would otherwise apply, the difference "M-F" as defined in the
     above formula is less than $1.00 or "F" is equal to or greater than "M",
     then the adjustment provided by this Section 1408 shall not be made and in
     lieu thereof the provisions of Section 1415 shall apply to such
     distribution.

          SECTION 1409.  Adjustment for Self-Tender Offer.

          If, after the Issue Date of the Securities, the Parent or any
     Subsidiary of the Parent pays holders of the Parent Common Stock in respect
     of a tender or exchange offer, other than an odd-lot offer, by the Parent
     or any of its Subsidiaries for Parent Common Stock to the extent that the
     offer involves aggregate consideration that, together with (i) any cash and
     the fair market value of any other consideration payable in respect of any
     tender offer by the Parent or any of its Subsidiaries for shares of Parent
     Common Stock consummated within the preceding 12 months not triggering a
     Conversion Rate adjustment and (ii) all-cash distributions to all or
     substantially all holders of Parent Common Stock made within the preceding
     12 months not triggering a Conversion Rate adjustment, exceeds an amount
     equal to 15% of the market capitalization of Parent Common Stock on the
     expiration date of the tender offer, the Conversion Rate shall be adjusted
     in an equitable manner, as determined by the Parent's Board of Directors in
     consultation with Goldman, Sachs & Co. or such other nationally recognized
     investment banking institution satisfactory to the Parent.

     SECTION 1410.  When Adjustment May Be Deferred.

          No adjustment in the Conversion Rate need be made unless the
     adjustment would require an increase or decrease of at least 1% in the
     Conversion Rate.  Any adjustments that are not made shall be carried
     forward and taken into account in any subsequent adjustment.

          All calculations under this Article Fourteen shall be made to the
     nearest cent or to the nearest 1/1,000th of a share, as the case may be.

                                      27
<PAGE>

     SECTION 1411.  When No Adjustment Is Required.

          If the Parent adopts a stockholders rights plan under which the Parent
     issues rights providing that each share of Parent Common Stock issued upon
     conversion of the Security at any time prior to the distribution of
     separate certificates representing the rights will be entitled to receive
     the rights, no adjustment need be made as a result of:  (i) the issuance of
     the rights; (ii) the distribution of separate certificates representing the
     rights; (iii) the exercise or redemption of the rights in accordance with
     any rights agreement; or (iv) the termination or invalidation of the
     rights.

          No adjustment need be made for a transaction referred to in Section
     1407 if Holders of the Securities may participate in the transaction on a
     basis and with notice that the Board of Directors determines to be fair and
     appropriate in light of the basis and notice on which holders of shares of
     Parent Common Stock participate in the transaction.  No adjustment need be
     made for a transaction referred to in Section 1408 if all Holders of the
     Securities may participate in the transaction.

          No adjustment need be made for a change in the par value or no par
     value of the shares of Parent Common Stock.

          To the extent the Securities become convertible pursuant to this
     Article Fourteen in whole or in part into cash, no adjustment need be made
     thereafter as to the cash.  Interest will not accrue on the cash.

     SECTION 1412.  Notice of Adjustment.

          Whenever the Conversion Rate is adjusted, the Company shall promptly
     mail to Holders a notice of the adjustment.  The Company shall file with
     the Trustee and the Conversion Agent such notice and a certificate from the
     Company's independent public accountants briefly stating the facts
     requiring the adjustment and the manner of computing it.  The certificate
     shall be conclusive evidence that the adjustment is correct.  Neither the
     Trustee nor any Conversion Agent shall be under any duty or responsibility
     with respect to any such certificate except to exhibit the same to any
     Holder desiring inspection thereof.

     SECTION 1413.  Voluntary Increase.

          The Company from time to time may increase the Conversion Rate by any
     amount at any time for at least 20 days, so long as the increase is
     irrevocable during such period.  Whenever the Conversion Rate is increased,
     the Company shall mail to Holders and file with the Trustee and the
     Conversion Agent a notice of the increase.  The Company shall mail the
     notice at least 15 days before the date the increased Conversion Rate takes
     effect. The notice shall state the increased Conversion Rate and the period
     it will be in effect.  A voluntary increase of the Conversion Rate does not
     change or adjust the Conversion Rate otherwise in effect for purposes of
     Section 1406, 1407, 1408 or 1409.

                                      28
<PAGE>

     SECTION 1414.  Notice of Certain Transactions.

          If:

          (1) the Parent takes any action that would require an adjustment in
     the Conversion Rate pursuant to Section 1406, 1407, 1408 or 1409 (unless no
     adjustment is to occur pursuant to Section 1411); or

          (2) the Parent takes any action that would require a supplemental
     indenture pursuant to Section 1415; or

          (3) there is a liquidation or dissolution of the Parent;

     then the Company shall mail to Holders and file with the Trustee and the
     Conversion Agent a notice stating the proposed record date for a dividend
     or distribution or the proposed effective date of a subdivision,
     combination, reclassification, consolidation, merger, binding share
     exchange, transfer, liquidation or dissolution.  The Company shall file and
     mail the notice at least 15 days before such date.  Failure to file or mail
     the notice or any defect in it shall not affect the validity of the
     transaction.

     SECTION 1415.  Reorganization of the Parent.

          If the Parent is a party to a transaction subject to Section 801
     (other than a sale of all or substantially all of the assets of the Parent
     in a transaction in which the holders of shares of Parent Common Stock
     immediately prior to such transaction do not receive securities, cash or
     other assets of the Parent or any other person) or a merger or binding
     share exchange which reclassifies or changes its outstanding shares of
     Parent Common Stock, the person obligated to deliver securities, cash or
     other assets upon conversion of Securities shall enter into a supplemental
     indenture.  If the issuer of securities deliverable upon conversion of
     Securities is an Affiliate of the successor company, that issuer shall join
     in the supplemental indenture.

          The supplemental indenture shall provide that the Holder of a Security
     may convert it into the kind and amount of securities, cash or other assets
     which such Holder would have received immediately after the consolidation,
     merger, binding share exchange or transfer if such Holder had converted the
     Security immediately before the effective date of the transaction, assuming
     (to the extent applicable) that such Holder (i) was not a constituent
     person or an Affiliate of a constituent person to such transaction; (ii)
     made no election with respect thereto; and (iii) was treated alike with the
     plurality of non-electing Holders. The supplemental indenture shall provide
     for adjustments which shall be as nearly equivalent as may be practical to
     the adjustments provided for in this Article Fourteen.  The successor
     company shall mail to Holders a notice briefly describing the supplemental
     indenture.

          If this Section applies, neither Section 1406 nor Section 1407
     applies.

                                      29
<PAGE>

          If the Parent makes a distribution to all holders of its shares of
     Parent Common Stock of any of its assets, or debt securities or any rights,
     warrants or options to purchase securities of the Parent that, but for the
     provisions of the last paragraph of Section 1408, would otherwise result in
     an adjustment in the Conversion Rate pursuant to the provisions of Section
     1408, then, from and after the record date for determining the holders of
     shares of Parent Common Stock entitled to receive the distribution, a
     Holder of a Security that converts such Security in accordance with the
     provisions of this Indenture shall upon such conversion be entitled to
     receive, in addition to the shares of shares of Parent Common Stock into
     which the Security is convertible, the kind and amount of securities, cash
     or other assets comprising the distribution that such Holder would have
     received if such Holder had converted the Security immediately prior to the
     record date for determining the holders of shares of Parent Common Stock
     entitled to receive the distribution.

     SECTION 1416.  Company Determination Final.

          Any determination that the Company, the Parent or the Board of
     Directors must make pursuant to Section 1405, 1406, 1407, 1408, 1409, 1410,
     1411, 1415 or 1417 is conclusive, absent manifest error.

     SECTION 1417.  Simultaneous Adjustments.

          In the event that this Article Fourteen requires adjustments to the
     Conversion Rate under more than one of Sections 1406(4), 1407, 1408 or
     1409, and the record dates for the distributions giving rise to such
     adjustments shall occur on the same date, then such adjustments shall be
     made by applying, first, the provisions of Section 1406(4), second, the
     provisions of Section 1408, third, the provisions of Section 1407, and
     fourth, the provisions of Section 1409.

     SECTION 1418.  Successive Adjustments.

          After an adjustment to the Conversion Rate under this Article
     Fourteen, any subsequent event requiring an adjustment under this Article
     Fourteen shall cause an adjustment to the Conversion Rate as so adjusted.

                                 ARTICLE THREE

                                 MISCELLANEOUS

SECTION 3.01.  Execution of Supplemental Indenture.

     This Supplemental Indenture is executed and shall be construed as an
indenture supplemental to the Original Indenture and, as provided in the
Original Indenture, this Supplemental Indenture forms a part thereof.  The
Original Indenture, as supplemented and amended by this Supplemental Indenture,
is in all respects hereby adopted, ratified and confirmed.

                                      30
<PAGE>

SECTION 3.02.  Conflict with Trust Indenture Act.

     If and to the extent that any provision hereof limits, qualifies or
conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act of 1939, as amended, such imposed duties shall control.

SECTION 3.03.  Successors and Assigns.

     All covenants and agreements in this Supplemental Indenture by the Company
and the Parent shall bind their respective successors and assigns, whether so
expressed or not.

SECTION 3.04.  Separability Clause.

     In case any one or more of the provisions contained in this Supplemental
Indenture, the Original Indenture or in the Securities of any series shall for
any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions
of this Supplemental Indenture, the Original Indenture or of such Securities,
but this Supplemental Indenture, the Original Indenture and such Securities
shall be construed as if such invalid or illegal or unenforceable provision had
never been contained herein or therein.

SECTION 3.05.  Benefits of Supplemental Indenture.

     Nothing in this Supplemental Indenture or in the Original Indenture,
express or implied, shall give to any person, other than the parties hereto and
their successors hereunder and the Holders (to the extent specified herein or
therein), any benefit or any legal or equitable right, remedy or claim under
this Supplemental Indenture.

SECTION 3.06.  Governing Law.

     This Supplemental Indenture shall be deemed to be a contract made under the
laws of the State of New York, and for all purposes shall be construed in
accordance with the laws of said State.

SECTION 3.07.  Execution and Counterparts.

     This Supplemental Indenture may be executed in any number of counterparts,
each of which shall be an original; but such counterparts shall together
constitute but one and the same instrument.

SECTION 3.08.  Notices.

     Any request, demand, authorization, notice, waiver, consent or
communication shall be in writing and delivered in person or mailed by first-
class mail, postage prepaid, addressed as follows:

                                      31
<PAGE>

     if to the Company:

          Verizon Global Funding Corp.
          3900 Washington Street, 2nd Floor
          Wilmington, Delaware 19802
          Attention:  President and Treasurer

     if to the Parent:

          Verizon Communications Inc.
          1095 Avenue of the Americas
          New York, New York  10036
          Attention:  Senior Vice President and Treasurer

     if to the Trustee:

          First Union National Bank
          123 South Broad Street
          Philadelphia, Pennsylvania  19109
          Attention:  Corporate Trust Services

     The Company, the Parent or the Trustee by notice given to the other in the
manner provided above may designate additional or different addresses for
subsequent notices or communications.

     Any notice or communication given to a Holder shall be mailed to the
Holder, by first-class mail, postage prepaid, at the Holder's address as it
appears on the registration books of the Security Registrar and shall be
sufficiently given if so mailed within the time prescribed.

     Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders.  If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not received by the addressee.

     If the Company mails a notice or communication to the Holders, it shall
mail a copy to the Trustee and each Security Registrar, Paying Agent, Conversion
Agent or co-registrar.

                                      32
<PAGE>

     IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed
this First Supplemental Indenture on behalf of the respective parties hereto as
of the date first above written.

                                        VERIZON GLOBAL FUNDING CORP.

                                        By: /s/ Janet M. Garrity
                                           ______________________________
                                           Name:  Janet M. Garrity
                                           Title: President and Treasurer
Attest:

/s/ Robert W. Erb
___________________________
Name:  Robert W. Erb
Title: Secretary

                                       VERIZON COMMUNICATIONS INC.

                                       By: /s/ William F. Heitmann
                                          _______________________________
                                          Name:  William F. Heitmann
                                          Title: Senior Vice President and
                                                 Treasurer
Attest:

/s/ Robert W. Erb
___________________________
Name:  Robert W. Erb
Title: Assistant Corporate
       Secretary
                                       FIRST UNION NATIONAL BANK

                                       By: /s/ John Clapham
                                          ______________________________
                                          Name:  John Clapham
                                          Title: Vice President
Attest:

/s/ Ednora G. Linares
___________________________
Name:  Ednora G. Linares
Title: Vice President

(SEAL)
<PAGE>

                                                                       EXHIBIT A

                           [FORM OF FACE OF SECURITY]

          THIS SECURITY IS ISSUED WITH ORIGINAL ISSUE DISCOUNT AND IS SUBJECT TO
THE RULES FOR DEBT INSTRUMENTS WITH CONTINGENT PAYMENTS UNDER TREASURY
REGULATIONS (S) 1.1275-4(b).  FOR INFORMATION REGARDING THE ISSUE PRICE, ISSUE
DATE, "COMPARABLE YIELD" AND PROJECTED PAYMENT SCHEDULE FOR THIS SECURITY, YOU
SHOULD CONTACT: INVESTOR RELATIONS, VERIZON COMMUNICATIONS INC., 1095 AVENUE OF
THE AMERICAS, 36TH FLOOR, NEW YORK, NY 10036, TELEPHONE (212) 395-1525.

          [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO
NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
ARTICLE THREE OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.]

          THIS SECURITY AND ANY COMMON STOCK OF VERIZON COMMUNICATIONS INC.
ISSUABLE UPON THE CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THIS SECURITY IS HEREBY
NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

          THIS SECURITY AND ANY COMMON STOCK OF VERIZON COMMUNICATIONS INC.
ISSUABLE UPON CONVERSION OF THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHO THE TRANSFEROR REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A

                                      A-1
<PAGE>

THE SECURITIES ACT UNDER ACQUIRING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (2) PURSUANT TO THE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR
THAT IS AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501(A)(1), (2), (3)
OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND (B) IN ACCORDANCE
WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER
JURISDICTIONS.

          THIS SECURITY, ANY SHARES OF COMMON STOCK OF VERIZON COMMUNICATIONS
INC. ISSUABLE UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY BE AMENDED
OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND
OTHER TRANSFERS OF THIS SECURITY AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN
APPLICABLE LAW OR REGULATION (OR INTERPRETATION THEREOF) OR IN PRACTICES
RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY.  THE
HOLDER OF THIS SECURITY AND ANY SUCH SHARES SHALL BE DEEMED BY THE ACCEPTANCE OF
THIS SECURITY AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR
SUPPLEMENT.

          The foregoing legend may be removed from this Security on satisfaction
of the conditions specified in the Indenture.

          The undersigned hereby certifies that each of the Support Agreement
and the Share Contribution Agreement endorsed hereon is a true and complete copy
of the manually executed Support Agreement and the manually executed Share
Contribution Agreement, respectively.

                                      A-2
<PAGE>

                         VERIZON GLOBAL FUNDING CORP.

                    Zero-Coupon Convertible Notes due 2021

No.                                                     CUSIP:
Issue Date:  May 15, 2001
Issue Price:  $551.26
(for each $1,000 principal amount at maturity)

          VERIZON GLOBAL FUNDING CORP., a Delaware corporation, promises to pay
to [IF GLOBAL SECURITY--Cede & Co.] [IF DEFINITIVE SECURITY--________________]
or registered assigns, the principal amount of [
($                 )] on May 15, 2021, subject to adjustment as provided herein.

          This Security shall not bear cash interest except as specified on the
other side of this Security. This Security is convertible as specified on the
other side of this Security.

          Additional provisions of this Security are set forth on the other side
of this Security.

Dated:                   VERIZON GLOBAL FUNDING CORP.

                         By: __________________________________
                             Name:
                             Title:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

FIRST UNION NATIONAL BANK,
as Trustee, certifies that this is one
of the Securities referred to in the
within-mentioned Indenture.

By:    __________________________________
              Authorized Signatory

Dated:

                                      A-3
<PAGE>

                         [FORM OF REVERSE OF SECURITY]

                     Zero-Coupon Convertible Notes due 2021

1.  Cash Interest and Accretion Rate.

          Except as provided in this paragraph 1, this Security shall not bear
cash interest.  This Security shall initially represent the Issue Price and
shall accrete in value at an accretion rate of 3% per annum through the Stated
Maturity.

          Increased Accretion Rate. Beginning on May 15, 2004, if the Closing
Sales Price of the Parent Common Stock is equal to or less than 60% of the
Accreted Conversion Price of the Securities for any 20 trading days out of the
last 30 consecutive trading days ending three Business Days prior to such date
or three Business Days prior to any May 15 or November 15 thereafter, then the
accretion rate on the Securities for the semi-annual period commencing on such
date will be subject to an increased accretion rate equal to the applicable per
annum Reset Rate in effect at that time.  Any increased accretion rate made
pursuant to the preceding sentence will remain in effect until the May 15 or
November 15 thereafter when the Closing Sales Price of the Parent Common Stock
is not equal to or less than 60% of the Accreted Conversion Price of the
Securities for any 20 trading days out of the last 30 consecutive trading days
ending three Business Days prior to such date, at which time the accretion rate
will revert to 3% per annum.

          The "Reset Rate" will be established by the Reset Rate Agent, as of
each Reset Rate Determination Date. The "Reset Rate Determination Date" shall be
the date three Business Days preceding each of:

               (i) May 15, 2004, in which case the Reset Rate will be the Two-
     Year Reset Rate;

               (ii) May 15, 2006, in which case the Reset Rate will be the Five-
     Year Reset Rate;

               (iii)  May 15, 2008, in which case the Reset Rate will be the
     Two-Year Reset Rate;

               (iv) November 15, 2009, in which case the Reset Rate will be the
     One-Year Reset Rate;

               (v) May 15, 2011, in which case the Reset Rate will be the Five-
     Year Reset Rate;

                                      A-4
<PAGE>

               (vi) May 15, 2013, in which case the Reset Rate will be the Two-
     Year Reset Rate;

               (vii)  November 15, 2014, in which case the Reset Rate will be
     the One-Year Reset Rate;

               (viii)  May 15, 2016, in which case the Reset Rate will be the
     Five-Year Reset Rate;

               (ix) May 15, 2018, in which case the Reset Rate will be the Two-
     Year Reset Rate; and

               (x) November 15, 2019, in which case the Reset Rate will be the
     One-Year Reset Rate.

          The Reset Rate determined as of each Reset Rate Determination Date
will be equal to the rate that would, in the sole judgment of the Reset Rate
Agent, result in a trading price of par with a hypothetical issue of senior,
nonconvertible, noncontingent, fixed rate debt securities of the Company with
(i) a final maturity equal to, in the case of the Five-Year Reset Rate, five
years; in the case of the Two-Year Reset Rate, two years; and in the case of the
One-Year Reset Rate, one year; (ii) an aggregate principal amount equal to the
Accreted Principal Amount of the Securities; and (iii) covenants and other
provisions that are, insofar as would be practicable for an issue of senior,
nonconvertible, noncontingent, fixed rate debt securities, substantially
identical to those of the Securities. In no case, however, shall the Reset Rate
exceed 11% per annum or be less than 3% per annum.  If the Reset Rate Agent has
not established the Reset Rate for the applicable semi-annual period, or if the
Reset Rate Agent determines in its sole judgment that there is no suitable
reference rate from which the Reset Rate may be determined, the Reset Rate for
that period will be the Reset Rate most recently determined (except that if
there is no Reset Rate most recently determined, the Reset Rate shall be a rate
mutually agreed upon by the Reset Rate Agent and the Company reflecting current
market conditions), such Reset Rate to remain in effect until the Reset Rate
Agent determines that there is a suitable reference rate at which time the Reset
Rate Agent shall determine a new Reset Rate for the period ending on the next
Reset Rate Determination Date.

          The applicable per annum Reset Rate for a Security that is subject to
an increased accretion rate shall be determined as to any period for which such
increase is applicable as follows in each case until a new Reset Rate is in
effect:

               (i) effective May 15, 2004, the applicable per annum Reset Rate
     on such Security will be the Two-Year Reset Rate established on the Reset
     Rate Determination Date three Business Days preceding May 15, 2004;

               (ii) effective May 15, 2006, the applicable per annum Reset Rate
     on such Security will be the Five-Year Reset Rate established on the Reset
     Rate Determination Date three Business Days preceding May 15, 2006;

                                      A-5
<PAGE>

               (iii)  effective May 15, 2010 the applicable per annum Reset Rate
     on such Security will be the One-Year Reset Rate established on the Reset
     Rate Determination Date three Business Days preceding November 15, 2009;

               (iv) effective May 15, 2011 the applicable per annum Reset Rate
     on such Security will be the Five-Year Reset Rate established on the Reset
     Rate Determination Date three Business Days preceding May 15, 2011;

               (v) effective May 15, 2015, the applicable per annum Reset Rate
     on such Security will be the One-Year Reset Rate established on the Reset
     Rate Determination Date three Business Days preceding November 15, 2014;

               (vi) effective May 15, 2016, the applicable per annum Reset Rate
     on such Security will be the Five-Year Reset Rate established on the Reset
     Rate Determination Date three Business Days preceding May 15, 2016; and

               (vii)  effective May 15, 2020, the applicable per annum Reset
     Rate on such Security will be the One-Year Reset Rate established on the
     Reset Rate Determination Date three Business Days preceding November 15,
     2019.

          Notwithstanding the foregoing:

               (x) if a Security first becomes subject to an increased accretion
     rate (or first becomes subject to an increased accretion rate following a
     reversion of the accretion rate to 3%) on or after May 15, 2008, but not
     later than November 15, 2009, the initial Reset Rate will be the Two-Year
     Reset Rate established on the Reset Rate Determination Date three Business
     Days preceding May 15, 2008 and thereafter the applicable Reset Rate will
     be determined in accordance with the prior sentence;

               (y) if a Security first becomes subject to an increased accretion
     rate (or first becomes subject to an increased accretion rate following a
     reversion of the accretion rate to 3%) on or after May 15, 2013, but not
     later than November 15, 2014, the initial Reset Rate will be the Two-Year
     Reset Rate established on the Reset Rate Determination Date three Business
     Days preceding May 15, 2013 and thereafter the applicable Reset Rate will
     be determined in accordance with the prior sentence; and

               (z) if a Security first becomes subject to an increased accretion
     rate (or first becomes subject to an increased accretion rate following a
     reversion of the accretion rate to 3%) on or after May 15, 2018, but not
     later than November 15, 2019, the initial Reset Rate will be the Two-Year
     Reset Rate established on the Reset Rate Determination Date three Business
     Days preceding May 15, 2018 and thereafter the applicable Reset Rate will
     be determined in accordance with the prior sentence.

          If an increased accretion rate is in effect for a particular semi-
annual period, the Company will pay a portion of the increased accretion rate as
cash interest at an annualized rate of 0.25% per annum (or 0.125% per semi-
annual period) on the Applicable Principal Amount and the remaining increased

                                      A-6
<PAGE>

accretion rate will be accrued and payable at maturity, redemption or
repurchase.

          For the determination of the Reset Rate, the Reset Rate Agent shall
seek indicative reference rates from three nationally recognized investment
banks.  The determination of any Reset Rate will be conclusive and binding upon
the Reset Rate Agent, the Parent, the Company, the Trustee and the Holders, in
the absence of manifest error.

          The Reset Rate Agent may be removed at any time by the Parent giving
at least sixty days' written notice to the Reset Rate Agent. The Reset Rate
Agent may resign at any time upon giving at least thirty days' written notice.

          For purposes of this Paragraph 1, the following defined terms shall
have the respective meanings provided below.

          "Accreted Conversion Price" means, as of any date, the Accreted
Principal Amount of this Security divided by the Conversion Rate (as defined in
the Indenture).

          "Accreted Principal Amount" means, for any date, the Issue Price (as
defined in the Indenture) of the Securities adjusted to reflect the accretion of
the Securities at the applicable accretion rate to such date.

          "Applicable Principal Amount" means, for any semi-annual period, the
Issue Price of the Securities adjusted to reflect the accretion of the
Securities at the applicable accretion rate to the beginning of such semi-annual
period (excluding any accrued and unpaid cash interest).

          "Reset Rate Agent" means a nationally recognized financial institution
to be appointed by the Company to establish the applicable Reset Rate as of each
Reset Rate Determination Date.

          In the event of an increased accretion rate, the Company will
disseminate a press release through Reuters Economic Services or Bloomberg
Business News containing this information or publish the information on the
Parent's web site on the World Wide Web or through such other public medium as
the Parent may use at that time.

          Tax Event.  From and after the date of the occurrence of a Tax Event,
the Company will have the option to pay cash interest on the Securities instead
of accreting the principal amount thereof, including any cash interest payable
pursuant to an increased accretion rate.  Following the Company's election to
pay cash interest following a Tax Event, the principal amount on which cash
interest is payable will be restated and will equal the Restated Principal
Amount, and cash interest will accrue from the date of such restatement.  The
Restated Principal Amount shall be the amount due at maturity of the Securities.
Cash interest will be paid on the Restated Principal Amount at a rate equal to
the accretion rate that would be in effect from time to time if the Company had
not elected to pay cash interest.

                                      A-7
<PAGE>

          A "Tax Event" means that the Company shall have received an opinion
from a nationally-recognized independent tax counsel experienced in such matters
to the effect that, as a result of:

               (i) any amendment to, or change (including any announced
     prospective change (which will not include a proposed change)) in, the laws
     (or any regulations thereunder) of the United States or any political
     subdivision or taxing authority of the United States or any political
     subdivision, provided that a Tax Event will not occur more than 90 days
     before the effective date of any prospective change in such laws or
     regulations;

               (ii) any judicial decision or official administrative
     pronouncement, ruling, regulatory procedure, notice or announcement,
     including any notice or announcement of intent to adopt such procedures or
     regulations (an "Administrative Action''); or

               (iii)  any amendment to or change in the administrative position
     or interpretation of any Administrative Action or judicial decision that
     differs from the theretofore generally accepted position, in each case, by
     any legislative body, court, government agency or regulatory body,
     irrespective of the manner in which such amendment or change is made known,
     which amendment or change is effective or such Administrative Action or
     decision is announced, in each case, on or after the Issue Date;

there is more than an insubstantial risk that interest payable on this Security,
including amounts reflecting accretion of the Securities included in the
Accreted Principal Amount and any cash interest payable pursuant to an increased
accretion rate, either:

               (i) would not be deductible on a current accrual basis; or

               (ii) would not be deductible under any other method, in either
     case in whole or in part, by the Company for United States federal income
     tax purposes.

          Cash Interest and Accretion Computation and Method of Payment.  Any
cash interest payable hereunder and any accretion of the Securities will be
computed based on a 360-day year of twelve 30-day months.  Cash interest, if
any, will be payable semi-annually in arrears on each May 15 and November 15
(each an "Interest Payment Date") through maturity;  provided that, in the event
the Company elects to pay cash interest upon the occurrence of a Tax Event as of
a date less than 60 days prior to any Interest Payment Date, the first payment
of cash interest shall be made on the Interest Payment Date next succeeding such
Interest Payment Date.  The record date for the payment of cash interest to
Holders will be the close of business on May 1 and November 1 of each year
(whether or not a Business Day);  provided that cash interest payable at Stated
Maturity or upon redemption or repurchase will be payable to the person to whom
principal is payable.  The Company will give notice to the Holders, no later
than 15 days prior to each record date, of the amount of cash interest to be
paid as of the next Interest Payment Date.  Cash interest on the Securities will
be paid to registered holders of the Securities as of the record date.

2.   Method of Payment at Redemption, Repurchase or Maturity.

                                      A-8
<PAGE>

          Subject to the terms and conditions of the Indenture, the Company will
make payments (1) in cash in respect of a Redemption Price, Change in Control
Purchase Price and at Stated Maturity and (2) in cash, shares of Parent Common
Stock or a combination thereof in respect of a Purchase Price, in each case to
Holders who surrender Securities to a Paying Agent to collect such payments in
respect of the Securities. The Company will pay cash amounts in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. However, the Company may pay such cash amounts by check
payable in such money.

3.   Paying Agent, Conversion Agent, Security Registrar and Reset Rate Agent.

          First Union National Bank (the "Trustee") will initially act as Paying
Agent, Conversion Agent and Security Registrar.  The Company may appoint and
change any Paying Agent, Conversion Agent, Security Registrar or Reset Rate
Agent without notice, other than notice to the Trustee; provided that the
Company will maintain at least one Paying Agent in the State of New York, The
City of New York, The Borough of Manhattan, which shall initially be an office
or agency of the Trustee. The Company or any of its Subsidiaries or any of their
Affiliates may act as Paying Agent, Conversion Agent, Security Registrar or
Reset Rate Agent.

4.   Indenture.

          The Company issued the Securities under an Indenture dated as of
December 1, 2000, as amended (the "Indenture"), among the Company, the Parent
and the Trustee.  The terms of the Securities include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act.  The Securities are subject to all such terms, and Holders are
referred to the Indenture and the Trust Indenture Act for a statement of those
terms.  Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.

          The Securities are general unsecured obligations of the Company
limited to $6,258,390,000 aggregate principal amount at maturity, subject to
upward adjustment from time to time in the event there is an increased accretion
rate in effect pursuant to paragraph 1 hereof.

          The Indenture does not limit other indebtedness of the Company,
secured or unsecured.

5.   Redemption at the Option of the Company.

          The Securities are redeemable at the option of the Company in whole or
in part, at any time or from time to time on, or after May 15, 2006 upon not
less than 30 nor more than 60 days' notice by mail to Holders for a cash price
equal to the Accreted Principal Amount plus any accrued and unpaid cash
interest, up to the Redemption Date (the "Redemption Price").  No sinking fund
is provided for the Securities.

          Notice of redemption will be mailed at least 30 days but not more than
60 days before the Redemption Date to each Holder of Securities to be redeemed
at the Holder's registered address.

                                      A-9
<PAGE>

6.   Purchase By the Company at the Option of the Holder.

          Subject to the terms and conditions of the Indenture, the Company
shall become obligated to purchase, at the option of the Holder, all or any
portion of the Securities held by such Holder on May 15, 2004, May 15, 2006, May
15, 2011 and May 15, 2016, in integral multiples of $1,000 principal amount at
maturity, at a Purchase Price equal to the Accreted Principal Amount plus any
accrued and unpaid cash interest to the Purchase Date or, if the Company has
previously exercised its option to pay cash interest instead of accreting the
principal amount of the Securities following a Tax Event, at a purchase price
equal to the Restated Principal Amount plus accrued and unpaid cash interest to
the Purchase Date.  To exercise such right, a Holder shall deliver to the
Company a Purchase Notice containing the information set forth in the Indenture,
at any time from the opening of business on the date that is 20 Business Days
prior to such Purchase Date until the close of business on the Business Day
prior to such Purchase Date, and shall deliver the Securities to the Paying
Agent as set forth in the Indenture.

          The Purchase Price may be paid, at the option of the Company, in cash
or by delivery of shares of Parent Common Stock, or in any combination thereof.
If the Company elects to pay the Purchase Price in shares of Parent Common Stock
or a combination of Parent Common Stock and cash, the Company shall notify
Holders of such election 20 Business Days prior to the Purchase Date.

          Subject to the terms and conditions of the Indenture, if a Change in
Control occurs, the Company shall become obligated to purchase, at the option of
the Holder, all or any portion of the Securities held by such Holder, at a
purchase price equal to the Accreted Principal Amount plus any accrued and
unpaid cash interest to the Change in Control Purchase Date or, if the Company
has previously exercised its option to pay cash interest instead of accreting
the principal amount of the Securities following a Tax Event, at a purchase
price equal to the Restated Principal Amount plus any accrued and unpaid cash
interest to the Change in Control Purchase Date.  To exercise such right, a
Holder shall deliver to the Company a Change in Control Purchase Notice
containing the information set forth in the Indenture, at any time until the
close of business on the 30th day after the date the Company delivers its
written notice of the occurrence of a Change in Control, and shall deliver the
Securities to the Paying Agent as set forth in the Indenture.

          Holders have the right to withdraw any Purchase Notice or Change in
Control Purchase Notice, as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture.

          If cash (and/or Parent Common Stock if permitted under the Indenture)
sufficient to pay the Purchase Price or Change in Control Purchase Price, as the
case may be, of all Securities or portions thereof to be purchased as of the
Purchase Date or the Change in Control Purchase Date, as the case may be, is
deposited with the Paying Agent on the fifth Business Day following the Purchase
Date or prior to 10:00 a.m. (local time in the City of New York) on the Change
in Control Purchase Date and cash interest ceases to accrue on such Securities
(or portions thereof) and the Securities cease to accrete in value immediately
after such Purchase Date or Change in Control Purchase Date, the Holder thereof
shall have no other rights as such other than the right to receive the Purchase

                                     A-10
<PAGE>

Price or Change in Control Purchase Price upon surrender of such Security.

7.   Conversion.

          Holders may surrender Securities for conversion into shares of Parent
Common during any quarterly conversion period if the Closing Sales Price of the
Parent Common Stock for at least 20 trading days in the 30 consecutive trading
days ending on the first day of the quarterly conversion period is more than the
percentage which shall initially be 120% and shall decline by .25% per semi-
annual period over the life of the Securities to 110% (the "Applicable
Percentage") of the Accreted Conversion Price on the first day of such quarterly
conversion period.  A "quarterly conversion period" will be the period from and
including the 12th trading day in a fiscal quarter of the Parent to but not
including the 12th trading day in the immediately following fiscal quarter of
the Parent.

          Holders may also surrender Securities for conversion into shares of
Parent Common Stock during the five Business Day period following the ten
Business Days after any nine consecutive trading day period in which for each
day the trading price of the Securities (as determined by the Trustee) is less
than 95% of the product of the Closing Sales Price of the Parent Common Stock
multiplied by the number of shares into which a Security is convertible for that
period.  The "trading price" of the Securities on any date of determination
means the average of the secondary market bid quotations per Security obtained
by the Conversion Agent for $10,000,000 principal amount at maturity of the
Securities at approximately 3:30 p.m., New York City time, on such determination
date from three independent nationally recognized securities dealers selected by
the Company; provided that if at least three such bids cannot reasonably be
obtained by the Conversion Agent, but two such bids are obtained, then the
average of the two bids shall be used, and if only one such bid can reasonably
be obtained by the Conversion Agent, this one bid shall be used; and provided
further that if there are different secondary market quotations for Securities
that have been resold in transactions registered under any registration
statement filed with the Commission (as defined in the Indenture) and Securities
that have been resold pursuant to the exemption from registration under the
Securities Act provided by Rule 144 thereunder, the "trading price" of the
Securities will be determined based on the higher of the two sets of market
quotations.  If the Conversion Agent cannot reasonably obtain at least one bid
for $10,000,000 principal amount of maturity of the Securities from a nationally
recognized securities dealer or, in the reasonable judgment of the Company, the
bid quotations are not indicative of the secondary market value of the
Securities, then the trading price of the Securities will equal (a) the then-
applicable Conversion Rate of the Securities multiplied by (b) the closing price
on the New York Stock Exchange of Parent Common Stock on such determination
date.

          For the purposes of the immediately preceding paragraph, the term
"nine consecutive trading day period" means any nine consecutive trading days
during which the Conversion Agent determines the trading price of the
Securities; provided that the Conversion Agent shall have no obligation to
determine the trading price of the Securities unless requested by the Company;
and provided further that the Company shall have no obligation to make such
request unless a Holder provides the Company with reasonable evidence that the
trading price of the Securities would be less than 95% of the product of the
Closing Sales Price of the Parent Common Stock multiplied by the number of

                                     A-11
<PAGE>

shares into which a Security is convertible; and at which time, the Company
shall instruct the Conversion Agent to determine the trading price of the
Securities beginning on the next trading day and on each successive trading day
until the trading price is greater than or equal to 95% of the product of the
Closing Sales Price of the Parent Common Stock and the number of shares into
which a Security is convertible.

          If at the time of conversion pursuant to the second paragraph of this
Paragraph 7 the Closing Sales Price of Parent Common Stock is greater than 100%
of the Accreted Conversion Price but equal to or less than the Applicable
Percentage of the Accreted Conversion Price, then the Holders will receive, in
lieu of shares of Parent Common Stock based on the applicable Conversion Rate,
at the Company's option, cash or shares of Parent Common Stock, or a combination
of both cash and shares, with a value equal to the Accreted Principal Amount of
the Securities on the Conversion Date ("Accreted Value Conversion").  If there
is an Accreted Value Conversion, the shares of Parent Common Stock will be
valued at the average Closing Sales Price for the five trading days ending on
the third trading day prior to the date of conversion.  If the Company elects to
pay all or a portion of the Accreted Principal Amount upon an Accreted Value
Conversion in shares of Parent Common Stock, the Company will notify holders not
less than nine trading days prior to the beginning of the five Business Day
period in which Holders can convert their Securities pursuant to an Accreted
Value Conversion.

          A Holder may also surrender for conversion a Security or portion of a
Security which has been called for redemption pursuant to Paragraph 5 hereof,
even if the foregoing provisions have not been satisfied.  Such Securities may
be surrendered for conversion at any time following receipt of a notice of
redemption until the close of business on the Business Day prior to the
Redemption Date.

          In the event that the Parent distributes to all holders of Parent
Common Stock certain rights, for a period expiring within 60 days, as described
in Section 1407 of the Indenture, or a dividend or a distribution, as described
in Section 1408 of the Indenture where the fair market value of such dividend or
distribution per share of Parent Common Stock, as determined in the Indenture,
exceeds 15% of the Closing Sales Price of a share of Parent Common Stock as of
the trading day prior to the date of declaration for such distribution, the
Securities may be surrendered for conversion beginning on the date the Company
gives notice to the Holders of such right, which shall be not less than 20 days
prior to the Ex-Dividend Time for such dividend or distribution, and at any time
thereafter until the close of business on the Business Day prior to the Ex-
Dividend Time or until the Company announces that such distribution will not
take place.  No adjustment to the ability of a Holder to convert will be made if
such Holder will otherwise participate in the dividend or distribution without
conversion.

          In addition, in the event the Parent is a party to a consolidation,
merger or binding share exchange pursuant to which the shares of Parent Common
Stock would be converted into cash, securities or other property as set forth in
Section 1415 of the Indenture, the Securities may be surrendered for conversion
at any time from and after the date which is 15 days prior to the date the
Parent announces as the anticipated effective time until 15 days after the
actual date of such transaction.

                                     A-12
<PAGE>

          If the Parent is a party to a consolidation, merger or binding share
exchange pursuant to which the Parent Common Stock is converted into cash,
securities or other property, at the effective time of the transaction, the
right to convert a Security into shares of Parent Common Stock will be changed
into a right to convert it into the kind and amount of cash, securities or other
property which the Holder would have received if the Holder had converted its
Securities immediately prior to the transaction.

          A Security in respect of which a Holder has delivered a Purchase
Notice or a Change in Control Purchase Notice exercising the option of such
Holder to require the Company to purchase such Security may be converted only if
such notice of exercise is withdrawn in accordance with the terms of the
Indenture.

          The Conversion Rate is 7.9318 shares of Parent Common Stock per $1,000
principal amount at maturity, subject to adjustment in certain events described
in the Indenture. A Holder which surrenders Securities for conversion will
receive cash in lieu of any fractional share of Parent Common Stock.

          To surrender a Security for conversion, a Holder must (1) complete and
manually sign the irrevocable conversion notice below (or complete and manually
sign a facsimile of such notice) and deliver such notice to the Conversion
Agent, (2) furnish appropriate endorsements and transfer documents and (3) pay
any transfer or similar tax, if required.

          A Holder may convert a portion of a Security if the principal amount
at maturity of such portion is $1,000 at maturity or an integral multiple of
$1,000 at maturity, subject to an upward adjustment in the event there is an
increased accretion rate.   No payment or adjustment will be made for dividends
on the shares of Parent Common Stock except as provided in the Indenture. Except
as provided herein and in the Indenture, on conversion of a Security, the Holder
will not receive any cash payment representing the Accreted Principal Amount
with respect to the converted Securities. Instead, upon conversion the Company
will deliver to the Holder a fixed number of shares of Parent Common Stock and
any cash payment to account for fractional shares.  The cash payment for
fractional shares will be based on the Closing Sales Price of the Parent Common
Stock on the trading day immediately prior to the Conversion Date.  Delivery of
shares of Parent Common Stock will be deemed to satisfy the Company's obligation
to pay the principal amount of the Securities, including accrued cash interest.
Accrued cash interest will be deemed paid in full rather than canceled,
extinguished or forfeited.  The Company will not adjust the Conversion Rate to
account for accrued interest.

          The Conversion Rate will be adjusted as provided in Article Fourteen
of the Indenture. The Company may increase the Conversion Rate for at least 20
days, so long as the increase is irrevocable during such period.

8.   Denominations; Transfer; Exchange.

          The Securities are in fully registered form, without coupons, in
denominations of $1,000 of principal amount and integral multiples of $1,000.  A
Holder may transfer or exchange Securities in accordance with the Indenture.
The Security Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes and

                                     A-13
<PAGE>

fees required by law or permitted by the Indenture. The Security Registrar need
not transfer or exchange any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security not to be
redeemed) or any Securities in respect of which a Purchase Notice or Change in
Control Purchase Notice has been given and not withdrawn (except, in the case of
a Security to be purchased in part, the portion of the Security not to be
purchased) or any Securities for a period of 15 days before the mailing of a
notice of redemption of Securities to be redeemed.

9.   Persons Deemed Owners.

          The registered Holder of this Security may be treated as the owner of
this Security for all purposes.

10.  Unclaimed Money or Securities.

          The Trustee and the Paying Agent shall return to the Company upon
written request any money or securities held by them for the payment of any
amount with respect to the Securities that remains unclaimed for two years,
subject to applicable unclaimed property law.  After return to the Company,
Holders entitled to the money or securities must look only to the Company for
payment as general creditors unless an applicable abandoned property law
designates another person.

11.  Amendment; Waiver.

          The Company, the Parent and the Trustee, with the written consent of
the Holders of at least a majority in aggregate principal amount of the
Securities at the time outstanding, may amend the Indenture or the Securities.
However, without the consent of each Holder affected, an amendment or supplement
to the Indenture or the Securities may not:

          (1) reduce the principal of or premium on or change the Stated
     Maturity of any Security;

          (2) reduce the rate of or change the time for payment of cash interest
     on, or reduce the accretion rate of, any Security;

          (3) reduce or alter the method of computation of the Redemption Price,
     Purchase Price or Change in Control Purchase Price of any Security or the
     time when such Redemption Price, Purchase Price or Change in Control
     Purchase Price is payable;

          (4) make the principal of, or cash interest on, any Security payable
     in money or securities other than that stated in the Security or change the
     price of payment;

          (5) make any change that would impair any of the rights granted in
     Section 508 of the Indenture in any material respect;

          (6) modify any provisions of the Support Agreement or the Share
     Contribution Agreement, except for such modifications which do not
     adversely affect the interests of Holders in any material respect; or

                                     A-14
<PAGE>

          (7) reduce the percentage of principal amount of the outstanding
     Securities of a series required to amend or supplement the Indenture or
     waive any of its provisions.

          It shall not be necessary for the consent of the Holders under this
paragraph 11 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent approves the substance thereof.

          After an amendment under this paragraph 11 becomes effective, the
Trustee will mail to each Holder a notice briefly describing such amendment.

12.  Defaults and Remedies.

          Under the Indenture, Events of Default include:

               (1) the Company's failure for 90 days to pay when due any cash
     interest

               on the Securities (after any increased accretion rate or after
     the Company's election to pay cash interest on the Securities following a
     Tax Event);

               (2) the Company's failure to pay principal on the Securities (or,
     if the Company has elected to pay cash interest on the Securities following
     a Tax Event, the Restated Principal Amount) when due, whether at Stated
     Maturity, by declaration, upon redemption, upon repurchase or otherwise;

               (3) the Company's failure to perform, or breach of, any covenant
     or warranty in the Securities or in the Indenture and applicable to the
     Securities for 90 days after notice to the Company by the Trustee or by
     Holders of at least 25% in principal amount at maturity of the outstanding
     Securities; and

               (4) certain events involving bankruptcy, insolvency or
     reorganization of the Parent or the Company.

          Holders may not enforce the Indenture or the Securities except as
provided in the Indenture.  The Trustee may refuse to enforce the Indenture or
the Securities unless it receives reasonable indemnity or security.  Subject to
certain limitations, Holders of a majority in aggregate principal amount of the
Securities at the time outstanding may direct the Trustee in its exercise of any
trust or power.  The Trustee may withhold from Holders notice of any continuing
default under the Indenture (except a default in payment of amounts specified in
clauses (1) or (2) above) if it determines that withholding notice is in their
interests; and provided, further, that in the case of any default of the
character specified in clause (3) above no such notice to Holders shall be given
until at least 60 days after the occurrence thereof.

13.  Trustee Dealings with the Company.

          Subject to certain limitations imposed by the Trust Indenture Act, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal

                                     A-15
<PAGE>

with the Company or its Affiliates with the
same rights it would have if it were not Trustee.

14.  No Recourse Against Others.

          A director, officer, employee or shareholder, as such, of either the
Company or the Parent shall not have any liability for any obligations of the
Company under the Securities or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  By accepting a
Security, each Holder waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Securities.

15.  Authentication.

          This Security shall not be valid until an authorize signatory of the
Trustee manually signs the Trustee's Certificate of Authentication on the other
side of this Security.

16.  Abbreviations.

          Customary abbreviations may be used in the name of a Holder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

17.  GOVERNING LAW.

          THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
SECURITY.

18.  Registration Rights.

          The Holders of the Securities are entitled to the benefits of a
Registration Rights Agreement, dated as of May 15, 2001, among Company and
Goldman, Sachs & Co. and Credit Suisse First Boston Corporation, including the
receipt of liquidated damages upon a registration default (as defined in such
agreement).

                                     A-16
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
           ASSIGNMENT FORM                               CONVERSION NOTICE
------------------------------------------------------------------------------------
 <S>                                                  <C>
To assign this Security, fill in the               To convert this Security into
form below:                                        Parent Common Stock, check the
                                                   box [   ]
------------------------------------------------------------------------------------
I or we assign and transfer this                   To convert only part of this
Security to                                        Security, state the principal
_________________________                          amount to be converted (which must
_________________________                          be $1,000 or an integral multiple
(Insert assignee's soc. sec. or tax                of $1,000):
ID no.)
_________________________                          If you want the stock certificate
_________________________                          made out in another person's name
_________________________                          fill in the form below:
(Print or type assignee's name,                    _________________________
address and zip code)                              _________________________
                                                   (Insert the other person's soc.
and irrevocably appoint                            sec. tax ID no.)

____________________ agent to                      __________________________
transfer this Security on the books                __________________________
of the Company.  The agent may                     __________________________
substitute another to act for him.                 __________________________
                                                   __________________________
                                                   (Print or type other person's name,
                                                   address and zip code)
------------------------------------------------------------------------------------
</TABLE>

Date:  __________ Your Signature:  ____________________________________

_______________________________________________________________________
  (Sign exactly as your name appears on the other side of this Security)

Signature Guaranteed

__________________________________
Participant in a Recognized Signature
Guarantee Medallion Program

By:_______________________________
         Authorized Signatory

                                     A-17
<PAGE>

SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY

Initial Principal Amount of Global Security: ____________($___________).

<TABLE>
<CAPTION>
       Date         Amount of Increase   Amount of Decrease    Principal Amount        Notation by
                       in Principal         in Principal      of Global Security   Security Registrar
                     Amount of Global     Amount of Global     After Increase or       or Security
                         Security             Security             Decrease             Custodian
------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                  <C>                  <C>
------------------------------------------------------------------------------------------------------

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

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

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

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

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

------------------------------------------------------------------------------------------------------
</TABLE>

                                     A-18
<PAGE>

                    Zero-Coupon Convertible Notes due 2021

                             Transfer Certificate

          In connection with any transfer of any of the Securities within the
period prior to the expiration of the holding period applicable to the sales
thereof under Rule 144(k) under the Securities Act of 1933, as amended (the
"Securities Act") (or any successor provision), the undersigned registered owner
of this Security hereby certifies with respect to $____________ principal amount
of the above-captioned Securities presented or surrendered on the date hereof
(the "Surrendered Securities") for registration of transfer, or for exchange or
conversion where the securities issuable upon such exchange or conversion are to
be registered in a name other than that of the undersigned registered owner
(each such transaction being a "transfer"), that such transfer complies with the
restrictive legend set forth on the face of the Surrendered Securities for the
reason checked below:

          [_]       A transfer of the Surrendered Securities is made to the
                    Company or any subsidiaries; or

          [_]       The transfer of the Surrendered Securities complies with
                    Rule 144A under the U.S. Securities Act of 1933, as amended
                    (the "Securities Act"); or

          [_]       The transfer of the Surrendered Securities is pursuant to an
                    effective registration statement under the Securities Act,
                    or

          [_]       The transfer of the Surrendered Securities is pursuant to
                    another available exemption from the registration
                    requirement of the Securities Act.

and unless the box below is checked, the undersigned confirms that, to the
undersigned's knowledge, such Securities are not being transferred to an
"affiliate" of the Company as defined in Rule 144 under the Securities Act (an
"Affiliate").

          [_]       The transferee is an Affiliate of the Company.

DATE:                 __________________________________

                                 Signature(s)

          (If the registered owner is a corporation, partnership or fiduciary,
the title of the person signing on behalf of such registered owner must be
stated.)

                                     A-19
<PAGE>

Signature Guaranteed

_____________________________________
Participant in a Recognized Signature

Guarantee Medallion Program

By: _____________________________
       Authorized Signatory

                                     A-20<PAGE>

                                                                     EXHIBIT 4.3

                         VERIZON GLOBAL FUNDING CORP.

             $5,442,079,000 Zero Coupon Convertible Notes due 2021

                         REGISTRATION RIGHTS AGREEMENT

                                                                    May 15, 2001

Goldman, Sachs & Co.
85 Broad Street
New York, New York  10004

Credit Suisse First Boston Corporation
11 Madison Avenue
New York, New York  10010

Ladies and Gentlemen:

          Verizon Global Funding Corp., a Delaware corporation (the "Company"),
proposes to issue and sell to Goldman, Sachs & Co. and Credit Suisse First
Boston Corporation (the "Initial Purchasers"), upon the terms and subject to the
conditions set forth in a purchase agreement, dated May 9, 2001 (the "Purchase
Agreement"), $5,442,079,000 aggregate principal amount at maturity of its Zero
Coupon Convertible Notes due 2021 (the "Securities") to be supported by Verizon
Communizations Inc. (the "Support Provider") pursuant to the Support Agreement,
dated as of October 31, 2000, between the Company and the Support Provider and
the Share Contribution Agreement, dated as of May 15, 2001, between the Company
and the Support Provider.  Capitalized terms used but not defined herein shall
have the meanings given to such terms in the Purchase Agreement.

          As an inducement to the Initial Purchasers to enter into the Purchase
Agreement and in satisfaction of a condition to the obligations of the Initial
Purchasers thereunder, the Company and the Support Provider agree with the
Initial Purchasers, for the benefit of the holders (including the Initial
Purchasers) of the Securities and the beneficial owners from time to time of
Underlying Shares into which the Securities are convertible or issued upon any
such conversion (collectively, the "Holders"), as follows:

I.  SHELF REGISTRATION.

          A.  The Company and the Support Provider shall use their reasonable
best efforts to file as promptly as practicable (but in no event more than 90
days after the earliest date of original issuance of any of the Notes (the
"Issue Date")) with the Commission (the "Shelf Filing Deadline Date"), and
thereafter shall use their reasonable best efforts to cause to be declared
effective as promptly as practicable (but in no event more than 210 days after
the Issue Date (the "Effectiveness Deadline Date")), a shelf registration
statement for an offering to be made on a delayed or continuous basis pursuant
to Rule 415 under the Act on an appropriate form relating to the offer and sale
of the Registrable Securities (as defined below) by the Holders thereof from
time to time in accordance with the methods of distribution elected by the
Holders and set forth in such registration statement (hereafter, the "Initial
<PAGE>

Shelf Registration Statement", and together with any Subsequent Shelf
Registration Statement (as defined below), a "Shelf Registration Statement");
provided that in no event will such method(s) of distribution take the form of
an underwritten offering of Registrable Securities without the prior agreement
of the Company and the Support Provider.  At the time any Shelf Registration
Statement is declared effective, each Holder that became a Notice Holder on or
prior to the deadline for response set forth in the Notice and Questionnaire (as
defined below) shall be named as a selling securityholder in the Shelf
Registration Statement and the related prospectus in such a manner as to permit
such Holder to deliver such prospectus to purchasers of Registrable Securities
in accordance with applicable law.  None of the securityholders of either of the
Company or the Support Provider (other than the Holders of Registrable
Securities) shall have the right to include any of the securities of any of the
Company or the Support Provider in the Shelf Registration Statement.  The term
"Notice Holder" means on any date, any Holder that has delivered a Notice and
Questionnaire to the Company on or prior to such date.  The term "Business Day"
means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which banking institutions in The City of New York are authorized or obligated
by law or executive order to close.  The term "Registrable Securities" means the
Securities and the Underlying Shares, until such securities have been converted,
and, at all times subsequent to any such conversion, any securities into or for
which such securities have been converted, and any security issued with respect
thereto upon any stock dividend, split or similar event until, in the case of
any such security, the earliest of (i) its effective registration under the Act
and resale in accordance with the Shelf Registration Statement covering it, (ii)
expiration of the holding period that would be applicable thereto under Rule
144(k) under the Act were it not held by an Affiliate of the Company or the
Support Provider or (iii) its sale to the public pursuant to Rule 144 under the
Act.

          B.  The Company and the Support Provider shall use their reasonable
best efforts to keep the Shelf Registration Statement continuously effective in
order to permit the prospectus forming part thereof to be used by Holders of
Registrable Securities for a period of two years from the last date of original
issuance of any of the Notes or such shorter period that will terminate when all
the Registrable Securities become eligible for resale without volume
restrictions pursuant to Rule 144 under the Act (in any such case, such period
being called the "Shelf Registration Period").  If the Initial Shelf
Registration Statement or any Subsequent Shelf Registration Statement ceases to
be effective for any reason at any time during the Shelf Registration Period,
the Company and the Support Provider shall use all reasonable efforts to obtain
the prompt withdrawal of any order suspending the effectiveness thereof, and in
any event shall amend the Shelf Registration Statement in a manner reasonably
expected to obtain the withdrawal of the order suspending the effectiveness
thereof, or file an additional Shelf Registration Statement covering all of the
securities that as of the date of such filing are Registrable Securities (a
"Subsequent Shelf Registration Statement").  If a Subsequent Shelf Registration
Statement is filed, the Company and Support Provider shall use all reasonable
efforts to cause the Subsequent Shelf Registration Statement to become effective
as promptly as is practicable after such filing and to keep such Shelf
Registration Statement (or subsequent Shelf Registration Statement) continuously
effective until the end of the Shelf Registration  Period.

          C.  Notwithstanding any other provisions hereof, the Company and the
Support Provider will ensure that (i) any Shelf Registration Statement and any
amendment thereto and any prospectus forming part thereof and any supplement

                                      -2-
<PAGE>

thereto complies in all material respects with the Act and the rules and
regulations of the Commission thereunder, (ii) any Shelf Registration Statement
and any amendment thereto (in either case, other than with respect to
information included therein in reliance upon or in conformity with written
information furnished to the Company by or on behalf of any Holder specifically
for use therein (the "Holders' Information")) does not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
(iii) any prospectus forming part of the Shelf Registration Statement, and any
supplement to such prospectus (in either case, other than with respect to
Holders' Information), does not include an untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

          D.  Each Holder of Registrable Securities agrees that if such Holder
wishes to sell Registrable Securities pursuant to a Shelf Registration Statement
and related prospectus, it will do so only in accordance with this Section and
Section III.  Each Holder of Registrable Securities wishing to sell Registrable
Securities pursuant to a Shelf Registration Statement and related prospectus
agrees to deliver a Notice and Questionnaire to the Company on or prior to the
deadline for response set forth in the Notice and Questionnaire.  The term
"Notice and Questionnaire" means a written notice mailed by the Company to the
holders of Registrable Securities not less than 30 calendar days prior to the
date Company intends in good faith to have the Shelf Registration Statement
declared effective.  From and after the date the Initial Shelf Registration
Statement is declared effective, the Company and Support Provider shall, as
promptly as is practicable after the date a Notice and Questionnaire is
delivered, (i) if required by applicable law, file with the U.S. Securities and
Exchange Commission a post-effective amendment to the Shelf Registration
Statement or prepare and, if required by applicable law, file a supplement to
the related prospectus or a supplement or amendment to any document incorporated
therein by reference or file any other document required by the U.S. Securities
and Exchange Commission so that the Holder delivering such Notice and
Questionnaire is named as a selling securityholder in the Shelf Registration
Statement and the related prospectus in such a manner as to permit such Holder
to deliver such prospectus to purchasers of the Registrable Securities in
accordance with applicable law and, if the Company and Support Provider shall
file a post-effective amendment to the Shelf Registration Statement, use
reasonable efforts to cause such post-effective amendment to be declared
effective under the Securities Act as promptly as is practicable; (ii) provide
such Holder copies of any documents filed pursuant to this Section; and (iii)
notify such Holder as promptly as practicable after the effectiveness under the
Securities Act of any post-effective amendment filed pursuant to this Section;
provided that if such Notice and Questionnaire is delivered during a Deferral
Period, (as defined below) the Company shall so inform the Holder delivering
such Notice and Questionnaire and shall take the actions set forth in clauses
(i), (ii) and (iii) above upon expiration of the Deferral Period in accordance
with Section III(B); provided, further, that if under applicable law the
Companies have more than one option as to the type or manner of making any such
filing, as set forth in an opinion of nationally recognized counsel experienced
in such matters delivered by the Holder to the Company and Support Provider,
they will make the required filing or filings in the manner or of a type that is
reasonably expected to result in the earliest availability of the prospectus for
effecting resales of Registrable Securities.  The term "Deferral Period" means
the period during which the availability of the Shelf Registration Statement and
any prospectus is suspended.  Notwithstanding anything contained herein to the
contrary, the Company and Support Provider shall be under no obligation to

                                      -3-
<PAGE>

name any Holder that is not a Notice Holder as a selling securityholder in the
Shelf Registration Statement (or any Subsequent Shelf Registration Statement) or
related prospectus; provided, however, that any Holder that becomes a Notice
Holder pursuant to the provisions of this Section of this Agreement (whether or
not such Holder was a Notice Holder at the time the Shelf Registration Statement
was initially declared effective) shall be named as a selling securityholder in
the Shelf Registration Statement (or any Subsequent Shelf Registration
Statement) or related prospectus subject to and in accordance with the
requirements of this Section.

II.  LIQUIDATED DAMAGES.

                A.  The parties hereto agree that the Holders of Registrable
Securities will suffer damages if the Company and the Support Provider fail to
fulfill their obligations under Section I, and that it would not be feasible to
ascertain the extent of such damages. Accordingly, if (i) the Initial Shelf
Registration Statement is not filed with the Commission on or prior to the Shelf
Filing Deadline Date, (ii) the Initial Shelf Registration Statement is not
declared effective on or prior to the Effectiveness Deadline Date, or (iii) the
aggregate duration of Deferral Periods in any period exceeds the number of days
permitted in respect of such period pursuant to Section III(B) hereof (each such
event referred to in clauses (i) through (iii), a "Registration Default"), the
Company and the Support Provider will be jointly and severally obligated to pay
as liquidated damages and not as a penalty an amount payable on each May 15 and
November 15 (each a "Damages Payment Date") to each Record Holder (as defined
below) of Registrable Securities accruing during the period of one or more such
Registration Defaults at a rate per annum equal to .25% of the Applicable
Principal Amount of such Securities and the Applicable Conversion Price (as
defined below) of such shares of Underlying Shares that have been issued upon
conversion of the Securities and are outstanding and held by such Holder until
(i) the Initial Shelf Registration Statement is filed, (ii) the Initial Shelf
Registration Statement becomes effective or (iii) the Deferral Period that
caused the limit on the aggregate duration of Deferral Periods in a period as
set forth in Section III(B) to be exceeded is terminated; provided that any
liquidated damages accrued with respect to any Security or portion thereof
called for redemption on a redemption date or converted into underlying common
shares on a conversion date prior to the Damages Payment Date shall, in any
event, be paid instead to the Holder who submitted such Security or portion
thereof for redemption or conversion. Liquidated damages shall only accrue while
there exists one or more Registration Defaults. As used herein, the following
terms shall have the following meanings: "Applicable Conversion Price" means, as
of any date of determination, the Applicable Principal Amount as of such date of
determination divided by the Conversion Rate in effect as of such date of
determination or, if no Securities are then outstanding, the Conversion Rate
that would be in effect were Securities then outstanding.

"Applicable Principal Amount" means, as of any date of determination, with
respect to each Security the sum of the initial issue price of such Security
($551.26) plus accrued interest plus accrued and unpaid cash interest, if any,
as of (i) May 15 preceding any date of determination between May 15 and November
15 of the same calendar year or (ii) as of November 15 preceding any date of
determination prior to May 15 of the following calendar year or (iii) as of such
date of determination if a date of determination is May 15 or November 15;
provided if no Securities are then outstanding, such sum shall be calculated as
if such Securities were then outstanding.  "Conversion Rate" shall have the
meaning assigned such term in the Indenture.  "Record Holder" means the Holder
of Registrable Securities on the 1st day of May or November, as the case may be,
immediately preceding a Damages Payment Date or, in the event that a

                                      -4-
<PAGE>

Registration Default is cured, the registered Holder on the date of such cure.
Notwithstanding anything to the contrary in this Section II(A), neither the
Company nor the Support Provider shall be required to pay liquidated damages to
a Holder of Registrable Securities if such Holder failed to provide the
information required to be provided by it in the Notice and Questionnaire and,
if any, pursuant to Section IV(M).

        B.  The Company shall notify the Trustee and the Conversion Agent under
the Indenture immediately upon the happening of each and every Registration
Default. The Company and the Support Provider shall pay the liquidated damages
due on the Registrable Securities by depositing with the Conversion Agent (which
may not be the Company for these purposes), in trust, for the benefit of the
Holders thereof, prior to 10:00 a.m., New York City time, on each Damages
Payment Date, sums sufficient to pay the liquidated damages then due. Each
obligation to pay liquidated damages shall be deemed to accrue from and
including the date of the applicable Registration Default.

        C.  The parties hereto agree that the liquidated damages provided for in
this Section II constitutes a reasonable estimate of and is intended to
constitute the sole damages that will be suffered by Holders of Registrable
Securities by reason of the failure of (i) the Shelf Registration Statement to
be filed, (ii) the Shelf Registration Statement to remain effective or (iii) an
Additional Registration Statement to be filed and remain effective, in each case
to the extent required by this Agreement.

III.  Registration Procedures.  In connection with any Shelf Registration
Statement, the following provisions shall apply:

        A.  The Company shall furnish to counsel for the Initial Purchasers,
prior to the filing thereof with the Commission, a copy of any Shelf
Registration Statement and each amendment thereof and each supplement, if any,
to the prospectus included therein and shall use its reasonable best efforts to
reflect in each such document, when so filed with the Commission, such comments
as such counsel may reasonably propose.

        B.  The Company shall advise counsel for the Initial Purchasers and the
Notice Holders (if applicable) and, if requested by any such person, confirm
such advice in writing (which advice pursuant to clauses (i)-(v) hereof shall be
accompanied by an instruction to suspend the use of the prospectus (a "Deferral
Notice") until the requisite changes have been made):

        i.    when any Shelf Registration Statement and any amendment thereto
              has been filed with the Commission and when such Shelf
              Registration Statement or any post-effective amendment thereto has
              become effective;

        ii.   of any request by the Commission for amendments or supplements to
              any Shelf Registration Statement or the prospectus included
              therein or for additional information;

        iii.  of the issuance by the Commission of any stop order suspending the
              effectiveness of any Shelf Registration Statement or the
              initiation of any proceedings for that purpose;

                                      -5-
<PAGE>

        iv.  of the receipt by the Company of any notification with respect to
             the suspension of the qualification of the Registrable Securities
             for sale in any jurisdiction or the initiation or threatening of
             any proceeding for such purpose; and

        v.   of the happening of any event that requires the making of any
             changes in any Shelf Registration Statement or the prospectus
             included therein in order that the statements therein are not
             misleading and do not omit to state a material fact required to be
             stated therein or necessary to make the statements therein not
             misleading.

A Deferral Period shall, without the Company and the Support Provider incurring
any obligation to pay liquidated damages, not exceed forty-five (45) days in any
three (3) month period or more than one hundred twenty (120) days in any twelve
(12) month period.

        C.  The Company and the Support Provider will make every reasonable
effort to obtain the withdrawal at the earliest possible time of any order
suspending the effectiveness of any Shelf Registration Statement.

        D.  The Company will furnish to each Holder of Registrable Securities
included within the coverage of any Shelf Registration Statement, without
charge, at least one conformed copy of such Shelf Registration Statement and any
post-effective amendment thereto, including financial statements and schedules
and, if any such Holder so requests in writing, all exhibits thereto (including
those, if any, incorporated by reference).

        E.  The Company will, during the Shelf Registration Period, promptly
deliver to each Holder of Registrable Securities included within the coverage of
any Shelf Registration Statement, without charge, as many copies of the
prospectus (including each preliminary prospectus) included in such Shelf
Registration Statement and any amendment or supplement thereto as such Holder
may reasonably request; and the Company consents to the use of such prospectus
or any amendment or supplement thereto by each of the selling Holders of
Registrable Securities in connection with the offer and sale of the Registrable
Securities covered by such prospectus or any amendment or supplement thereto.

        F.  The Company will, during the Shelf Registration Period, promptly
deliver to the Initial Purchasers, and such other persons that are required to
deliver a prospectus, without charge, as many copies of the final prospectus
included in any Shelf Registration Statement and any amendment or supplement
thereto as the Initial Purchasers, or other persons may reasonably request; and
the Company and the Support Provider consent to the use of such prospectus or
any amendment or supplement thereto by the Initial Purchasers, or other persons,
as applicable, as aforesaid.

        G.  Prior to the effective date of any Shelf Registration Statement, the
Company and the Support Provider will use their reasonable best efforts to
register or qualify, or cooperate with the Holders of Registrable Securities
included therein and their respective counsel in connection with the
registration or qualification of, such Securities for offer and sale under the
securities or blue sky laws of such jurisdictions as any such Holder reasonably
requests in writing and do any and all other acts or things necessary or
advisable to enable the offer and sale in such jurisdictions of the Registrable
Securities covered by such Shelf Registration Statement; provided that neither

                                      -6-
<PAGE>

the Company nor the Support Provider will be required to qualify generally to do
business in any jurisdiction where it is not then so qualified or to take any
action which would subject it to general service of process or to taxation in
any such jurisdiction where it is not then so subject.

        H.  The Company and the Support Provider will cooperate with the Holders
of Registrable Securities to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold pursuant to any
Shelf Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders thereof may request in
writing prior to sales of Registrable Securities pursuant to such Shelf
Registration Statement.

        I.  If any event contemplated by Section III(B)(ii) through (v) occurs
during the period for which the Company and the Support Provider are required to
maintain an effective Shelf Registration Statement, the Company will promptly
prepare and file with the Commission a post-effective amendment to the Shelf
Registration Statement or a supplement to the related prospectus or file any
other required document so that, as thereafter delivered to purchasers of the
Registrable Securities from a Holder, the prospectus will not include an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided that in the case of any event
contemplated by Section III(B)(v) the Company and the Support Provider may in
their discretion defer taking such action subject to the liquidated damage
provisions set forth in Section II hereof in the event that the aggregate
duration of the Deferral Period exceeds the limit on the aggregate duration of a
Deferral Period in a period set forth in Section III(B).

        J.  Not later than the effective date of the applicable Shelf
Registration Statement, the Company will provide a CUSIP number for each of the
Registrable Securities and provide the applicable trustee with printed
certificates for each series of Securities in a form eligible for deposit with
The Depository Trust Company.

        K.  The Company and the Support Provider will comply with all applicable
rules and regulations of the Commission and will make generally available to its
security holders as soon as practicable after the effective date of the
applicable Shelf Registration Statement an earning statement satisfying the
provisions of Section 11(a) of the Securities Act; provided that in no event
                                                   --------
shall such earning statement be delivered later than 45 days after the end of a
12-month period (or 90 days, if such period is a fiscal year) beginning with the
first month of the Company's first fiscal quarter commencing after the effective
date of the applicable Shelf Registration Statement, which statement shall cover
such 12-month period.

        L.  The Company and the Support Provider will cause the Indenture to be
qualified under the Trust Indenture Act as required by applicable law in a
timely manner.

        M.  The Company may require each Holder of Registrable Securities to be
registered pursuant to any Shelf Registration Statement to furnish to the
Company such information concerning the Holder and the distribution of such
Registrable Securities as the Company may from time to time reasonably require
for inclusion in such Shelf Registration Statement, and the Company may exclude
from such registration the Registrable Securities of any Holder that fails to
furnish such information within a reasonable time after receiving such request.

                                      -7-
<PAGE>

        N.  Each Holder of Registrable Securities to be registered pursuant to a
Shelf Registration Statement agrees by acquisition of such Registrable
Securities that, upon receipt of any notice from the Company pursuant to Section
III(B)(ii) through (v), such Holder will discontinue disposition of such
Registrable Securities until such Holder's receipt of copies of the supplemental
or amended prospectus contemplated by Section III(I) or until advised in writing
(the "Advice") by the Company that the use of the applicable prospectus may be
resumed.

        O.  The Company and the Support Provider shall enter into such customary
agreements (including, if requested, an underwriting agreement in customary
form) and take all such other action, if any, as Holders of a majority in
aggregate principal amount of the Registrable Securities being sold or the
managing underwriters (if any) shall reasonably request in order to facilitate
any disposition of Registrable Securities pursuant to a Shelf Registration
Statement.

        P.  The Company and the Support Provider shall use their reasonable
efforts to cause the shares of Verizon Common Stock issuable upon conversion of
the Notes to be listed on the New York Stock Exchange.

        Q.  Upon (i) the filing of the Initial Shelf Registration Statement and
(ii) the effectiveness of the Initial Shelf Registration Statement, the Company
and the Support Provider shall announce the same, in each case by release to
Reuters Economic Service and Bloomberg Business News.

        R.  The Company and Support Provider shall (i) make reasonably available
for inspection by a representative of, and Special Counsel (as defined below)
acting for, Holders of a majority in aggregate principal amount of the
Registrable Securities being sold and any underwriter participating in any
disposition of Registrable Securities pursuant to a Shelf Registration
Statement, all relevant financial and other records, pertinent corporate
documents and properties of the Company and Support Provider and each of their
respective subsidiaries to the same extent the Company and Support Provider
would customarily make such information available in the context of due
diligence for an underwritten public offering and (ii) use its reasonable best
efforts to have its officers, directors, employees, accountants and counsel
supply all relevant information reasonably requested by such representative,
Special Counsel or any such underwriter (an "Inspector") in connection with the
preparation of such Shelf Registration Statement.

        S.  The Company shall if requested by Holders of a majority in aggregate
principal amount of the Registrable Securities being sold, their Special Counsel
or the managing underwriters (if any) in connection with any Shelf Registration
Statement, use its reasonable best efforts to cause (i) its counsel to deliver
an opinion relating to such Shelf Registration Statement, the Registrable
Securities, if any, in customary form, (ii) its officers to execute and deliver
all customary documents and certificates requested by Holders of a majority in
aggregate principal amount of the Registrable Securities being sold, their
Special Counsel or the managing underwriters (if any) and (iii) its independent
public accountants to provide a comfort letter or letters in customary form,
subject to receipt of appropriate documentation as contemplated, and only if
permitted, by Statement of Auditing Standards No. 72.

                                      -8-
<PAGE>

IV.  Registration Expenses

          .  The Company and the Support Provider will bear all expenses
incurred in connection with the performance of its obligations under Sections I,
II, and III, including the expenses of counsel to the Company.  The Initial
Purchasers will bear expenses of counsel to the Initial Purchasers and the
Holders will bear the expenses of counsel to the Holders, which may be the same
firm that is acting as counsel to the Initial Purchasers (the "Special
Counsel").

V.  Indemnification.

     A.  The Company and the Support Provider shall jointly and severally
indemnify and hold harmless each Holder (including, without limitation, the
Initial Purchasers), its affiliates, their respective officers, directors,
employees, representatives and agents, and each person, if any, who controls
such Holder within the meaning of the Act or the Exchange Act (collectively
referred to for purposes of this Section V and Section VI as a Holder) from and
against any loss, claim, damage or liability, joint or several, or any action in
respect thereof (including, without limitation, any loss, claim, damage,
liability or action relating to purchases and sales of Registrable Securities),
to which that Holder may become subject, whether commenced or threatened, under
the Act, the Exchange Act, any other federal or state statutory law or
regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any such Shelf
Registration Statement or any prospectus forming part thereof or in any
amendment or supplement thereto or (ii) the omission or alleged omission to
state therein a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, and shall reimburse each Holder promptly
upon demand for any legal or other expenses reasonably incurred by that Holder
in connection with investigating or defending or preparing to defend against or
appearing as a third party witness in connection with any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however,
that the Company and the Support Provider shall not be liable in any such case
to the extent that any such loss, claim, damage, liability or action arises out
of, or is based upon, an untrue statement or alleged untrue statement in or
omission or alleged omission from any of such documents in reliance upon and in
conformity with any Holders' Information; and provided, further, that with
respect to any such untrue statement in or omission from any related preliminary
prospectus, the indemnity agreement contained in this Section V(A) shall not
inure to the benefit of any Holder from whom the person asserting any such loss,
claim, damage, liability or action received Registrable Securities to the extent
that such loss, claim, damage, liability or action of or with respect to such
Holder results from the fact that both (A) a copy of the final prospectus was
not sent or given to such person at or prior to the written confirmation of the
sale of such Registrable Securities to such person and (B) the untrue statement
in or omission from the related preliminary prospectus was corrected in the
final prospectus unless, in either case, such failure to deliver the final
prospectus was a result of non-compliance by the Company with Section III(D),
III(E), III(F) or III(G).

        B.  Each Holder shall indemnify and hold harmless the Company, the
Support Provider and their respective affiliates, their respective officers,
directors, employees, representatives and agents, and each person, if any, who
controls the Company or the Support Provider within the meaning of the Act or
the Exchange Act (collectively referred to for purposes of this Section V(B) and
Section VI as the "Company"), from and against any loss, claim, damage or

                                      -9-
<PAGE>

liability, joint or several, or any action in respect thereof,
to which the Company may become subject, whether commenced or threatened, under
the Act, the Exchange Act, any other federal or state statutory law or
regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any Shelf Registration
Statement or any prospectus forming part thereof or in any amendment or
supplement thereto or (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with any Holders' Information furnished to
the Company by such Holder, and shall reimburse the Company for any legal or
other expenses reasonably incurred by the Company in connection with
investigating or defending or preparing to defend against or appearing as a
third party witness in connection with any such loss, claim, damage, liability
or action as such expenses are incurred; provided, however, that no such Holder
shall be liable for any indemnity claims hereunder in excess of the amount of
net proceeds received by such Holder from the sale of Registrable Securities,
pursuant to such Shelf Registration Statement.

        C.  Promptly after receipt by an indemnified party under this Section V
of notice of any claim or the commencement of any action, the indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party pursuant to Section V(A) or V(B), notify the indemnifying party in writing
of the claim or the commencement of that action; provided, however, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have under this Section V except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses)
by such failure; and provided, further, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have to
an indemnified party otherwise than under this Section V. If any such claim or
action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section V for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than the reasonable costs of investigation; provided, however,
that an indemnified party shall have the right to employ its own counsel in any
such action, but the fees, expenses and other charges of such counsel for the
indemnified party will be at the expense of such indemnified party unless (1)
the employment of counsel by the indemnified party has been authorized in
writing by the indemnifying party, (2) the indemnified party has reasonably
concluded (based upon advice of counsel to the indemnified party) that there may
be legal defenses available to it or other indemnified parties that are
different from or in addition to those available to the indemnifying party, (3)
a conflict or potential conflict exists (based upon advice of counsel to the
indemnified party) between the indemnified party and the indemnifying party (in
which case the indemnifying party will not have the right to direct the defense
of such action on behalf of the indemnified party) or (4) the indemnifying party
has not in fact employed counsel reasonably satisfactory to the indemnified
party to assume the defense of such action within a reasonable time after
receiving notice of the commencement of the action, in each of which cases the
reasonable fees, disbursements and other charges of counsel will be at the

                                     -10-
<PAGE>

expense of the indemnifying party or parties. It is understood that the
indemnifying party or parties shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm of attorneys (in
addition to any local counsel) at any one time for all such indemnified party or
parties. Each indemnified party, as a condition of the indemnity agreements
contained in Sections V(A) and V(B), shall use all reasonable efforts to
cooperate with the indemnifying party in the defense of any such action or
claim. No indemnifying party shall be liable for any settlement of any such
action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with its written consent or if there be a
final judgment for the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment. No indemnifying
party shall, without the prior written consent of the indemnified party (which
consent shall not be unreasonably withheld), effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such proceeding.

VI.  Contribution.  If the indemnification provided for in Section V is
unavailable or insufficient to hold harmless an indemnified party under Section
V(A) or V(B), then each indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by such indemnified
party as a result of such loss, claim, damage or liability, or action in respect
thereof, (i) in such proportion as shall be appropriate to reflect the relative
benefits received by the Company and the Support Provider from the offering and
sale of the Securities, on the one hand, and a Holder with respect to the sale
by such Holder of Registrable Securities, on the other, or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company and
the Support Provider on the one hand and such Holder on the other with respect
to the statements or omissions that resulted in such loss, claim, damage or
liability, or action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Support
Provider on the one hand and a Holder on the other with respect to such offering
and such sale shall be deemed to be in the same proportion as the total net
proceeds from the offering of the Securities (before deducting expenses),
received by or on behalf of the Company, on the one hand, bear to the total
proceeds received by such Holder with respect to its sale of Registrable
Securities, on the other. The relative fault shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to the Company and the Support Provider or information supplied by the
Company and the Support Provider on the one hand or to any Holders' Information
supplied by such Holder on the other, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission. The parties hereto agree that it would not be
just and equitable if contributions pursuant to this Section VI were to be
determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to herein. The
amount paid or payable by an indemnified party as a result of the loss, claim,
damage or liability, or action in respect thereof, referred to above in this
Section VI shall be deemed to include, for purposes of this Section VI, any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending or preparing to defend any such

                                     -11-
<PAGE>

action or claim. Notwithstanding the provisions of this Section VI, an
indemnifying party that is a Holder of Registrable Securities shall not be
required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities sold by such indemnifying party to any
purchaser exceeds the amount of any damages which such indemnifying party has
otherwise paid or become liable to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

VII.  Rules 144 and 144A.  The Support Provider shall use its reasonable best
efforts to file the reports required to be filed by it under the Act and the
Exchange Act in a timely manner and, if at any time the Support Provider is not
required to file such reports, it will, upon the written request of any Holder
of Registrable Securities, make publicly available other information so long as
necessary to permit sales of such Holder's securities pursuant to Rules 144 and
144A. The Company and the Support Provider covenant that they will take such
further action as any Holder of Registrable Securities may reasonably request,
all to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Act within the limitation
of the exemptions provided by Rules 144 and 144A (including, without limitation,
the requirements of Rule 144A(d)(4)). Upon the written request of any Holder of
Registrable Securities, the Company and the Support Provider shall deliver to
such Holder a written statement as to whether they have complied with such
requirements. Notwithstanding the foregoing, nothing in this Section VII shall
be deemed to require the Company to register any of its securities pursuant to
the Exchange Act.

VIII.  Miscellaneous.

            A.  Amendments and Waivers.  The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given as to the Registrable Securities
unless the Company has obtained the written consent of Holders of a majority in
aggregate principal amount of the Registrable Securities, taken as a single
class. Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose Registrable Securities are being sold pursuant to a
Shelf Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of a majority in aggregate
principal amount of the Registrable Securities, being sold by such Holders
pursuant to such Shelf Registration Statement.

            B.  Notices.  All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail,
telecopier or air courier guaranteeing next-day delivery:

            (1)  if to a Holder, at the most current address given by such
     Holder to the Company in accordance with the provisions of this Section
     IX(B), which address initially is, with respect to each Holder, the address
     of such Holder maintained by the Registrar under the Indenture, with a copy
     in like manner to the Initial Purchasers;

                                     -12-
<PAGE>

          (2)  if to Goldman, Sachs & Co., initially at 85 Broad Street New
     York, New York 10004, Attention: Roger Matthews;

          (3)  if to Credit Suisse First Boston Corporation, initially at 11
     Madison Avenue New York, New York 10010, Attention: Joseph Fashino;

          (4)  if to the Company, initially at Verizon Global Funding Corp.,
     Attention Janet M. Garrity, President and Treasurer, 3900 Washington
     Street2nd Floor, Wilmington, DE 19802; and

          (5)  if to the Support Provider, initially at Verizon Communications
     Inc., Attention William F. Heitmann, Senior Vice President and Treasurer,
     1095 Avenue of the Americas, New York, New York 10036

          All such notices and communications shall be deemed to have been duly
given:  when delivered by hand, if personally delivered; one business day after
being delivered to a next-day air courier; five business days after being
deposited in the mail; and when receipt is acknowledged by the recipient's
telecopier machine, if sent by telecopier.

          C. Successors And Assigns.  This Agreement shall be binding upon the
Company, the Support Provider and their respective successors and assigns.

          D. Counterparts.  This Agreement may be executed in any number of
counterparts (which may be delivered in original form or by telecopier) and by
the parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

          E. Definition of Terms. For purposes of this Agreement, (a) the term
"business day" means any day on which the New York Stock Exchange, Inc. is open
for trading, (b) the term "subsidiary" has the meaning set forth in Rule 405
under the Act and (c) except where otherwise expressly provided, the term
"affiliate" has the meaning set forth in Rule 405 under the Act.

         F. Headings.  The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         G. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

         H. Remedies.  In the event of a breach by the Company or the Support
Provider or by any Holder of any of their respective obligations under this
Agreement, each Holder or the Company or the Support Provider, as the case may
be, in addition to being entitled to exercise all rights granted by law,
including recovery of damages (other than the recovery of damages for a breach
by the Company or the Support Provider of their obligations under Section I
hereof for which liquidated damages have been paid pursuant to Section II
hereof), will be entitled to specific performance of its rights under this
Agreement. The Company, the Support Provider and each Holder agree that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of any of the provisions of this Agreement and hereby further

                                     -13-
<PAGE>

agree that, in the event of any action for specific performance in respect of
such breach, it shall waive the defense that a remedy at law would be adequate.

        I.  No Inconsistent Agreements.  Each of the Company and the Support
Provider represents, warrants and agrees that (i) it has not entered into, shall
not, on or after the date of this Agreement, enter into any agreement that is
inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof, (ii) it has not previously
entered into any agreement which remains in effect granting any registration
rights with respect to any of its debt securities to any person and (iii)
without limiting the generality of the foregoing, without the written consent of
the Holders of a majority in aggregate principal amount of the then outstanding
Registrable Securities, it shall not grant to any person the right to request
the Company to register any debt securities of the Company under the Act unless
the rights so granted are not in conflict or inconsistent with the provisions of
this Agreement.

        J.  No Piggyback on Registrations.  No security holders of the Company
(other than the Holders of Registrable Securities in such capacity) shall have
the right to include any securities of the Company in any Shelf Registration
Statement other than Registrable Securities.

        K.  Severability.  The remedies provided herein are cumulative and not
exclusive of any remedies provided by law. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their reasonable best efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

                                     -14-
<PAGE>

          Please confirm that the foregoing correctly sets forth the agreement
among the Company, the Support Provider and the Initial Purchasers.

                                    Very truly yours,

                                    VERIZON GLOBAL FUNDING CORP.

                                    By  /s/ Janet M. Garrity
                                        _______________________________________
                                        Name:  Janet M. Garrity
                                        Title  President and Treasurer

                                    VERIZON COMMUNICATIONS INC.

                                    By  /s/ William F. Heitman
                                        _______________________________________
                                        Name:  William F. Heitmann
                                        Title: Senior Vice President and
                                               Treasurer

Accepted:

GOLDMAN, SACHS & CO.

By  /s/ Goldman, Sachs & Co.
    __________________________________
    Name:
    Title:

CREDIT SUISSE FIRST BOSTON CORPORATION

By  /s/ William Ettelson
    __________________________________
    Name:  William Ettelson
    Title:  Director

                                      S-1

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