Document:

<PAGE>

                 AMENDMENT NO. 3 TO THE JOINT SERVICES AGREEMENT
                   DATED AS OF DECEMBER 15, 1999, AS AMENDED,

AMONG CANTOR FITZGERALD, L.P., CANTOR FITZGERALD SECURITIES, CANTOR FITZGERALD &
CO., CFPH, L.L.C., CANTOR FITZGERALD PARTNERS, CANTOR FITZGERALD INTERNATIONAL,
   CANTOR FITZGERALD EUROPE (FORMERLY CANTOR FITZGERALD GILTS), eSPEED, INC.,
  eSPEED SECURITIES, INC., eSPEED GOVERNMENT SECURITIES, INC., eSPEED MARKETS,
  INC. AND eSPEED SECURITIES LIMITED (FORMERLY eSPEED SECURITIES
                             INTERNATIONAL LIMITED)

         THIS AMENDMENT No. 3, dated as of September 22, 2000, among Cantor
Fitzgerald, L.P., Cantor Fitzgerald Securities, Cantor Fitzgerald & Co., CFPH,
L.L.C., Cantor Fitzgerald Partners, Cantor Fitzgerald International, Cantor
Fitzgerald Europe (formerly Cantor Fitzgerald Gilts), eSpeed, Inc., eSpeed
Securities, Inc., eSpeed Government Securities, Inc., eSpeed Markets, Inc. and
eSpeed International Limited (formerly eSpeed Securities International Limited)
amends the Joint Services Agreement dated as of December 15, 1999 among the
parties hereto, as amended by Amendment No. 1, dated as of January 1, 2000, and
as amended by Amendment No. 2, dated as of July 1, 2000 (the "Joint Services
Agreement"). All the terms of the Joint Services Agreement are incorporated
herein by reference, except as otherwise stated herein. Capitalized terms used
herein that are not defined herein shall have the meanings ascribed to them in
the Joint Services Agreement.

                              W I T N E S S E T H:

         WHEREAS, pursuant to the Joint Services Agreement, the eSpeed Parties
and the Cantor Parties agreed, among other things, to collaborate in providing
brokerage services to customers through the then existing Electronic
Marketplaces, and in creating and developing Electronic Marketplaces for new
Financial Products and other Products;

         WHEREAS, in conjunction with certain energy industry participants, CFLP
has agreed to form TradeSpark, LP, a Delaware limited partnership
("TradeSpark"), which is intended to engage in the business of sponsoring a
real-time Electronic Energy Marketplace (as defined below) and affiliated web
portal, which may be accessed directly through fully electronic means or through
brokers via telephone, in and through which buyers and sellers of Energy
Products (as defined below) may effect transactions in those Energy Products;

         WHEREAS, in connection with the formation of TradeSpark, concurrently
with the execution of this Amendment, eSpeed will enter into a Services
Agreement with TradeSpark pursuant to which eSpeed will generally provide, among
other things, the global technology infrastructure for the transaction elements
of the Electronic Energys Marketplace;

         WHEREAS, in connection with the formation of TradeSpark, concurrently
with the execution of this Amendment, CFLP will enter into an Administrative
Services Agreement with TradeSpark pursuant to which CFLP will generally provide
TradeSpark with certain services, including, without limitation, office space,
personnel and corporate services, such as cash management, internal audit,
facilities management, promotional sales and marketing, legal, payroll, benefits
administration and other administrative services;

<PAGE>

         WHEREAS, in accordance with the terms and conditions of the Joint
Services Agreement, eSpeed's and CFLP's investment in, and provision of services
to, TradeSpark are subject to the terms and conditions of the Joint Services
Agreement; and

         WHEREAS, the Cantor Parties and eSpeed Parties desire to amend the
Joint Services Agreement to allow for such investment and provision of services
in accordance with Section 17(b) of the Joint Services Agreement.

         NOW, THEREFORE, in consideration of the premises contained herein, and
for other good and valuable consideration, the adequacy and receipt of which are
hereby acknowledged, the parties hereto agree as follows:

         1. Section 1 of the Joint Services Agreement hereby is amended to
incorporate the following Defined Terms in their appropriate alphabetical order:

         "Electronic Energy Marketplace" means the marketplace and affiliated
         web portal sponsored by TradeSpark on or through which North American
         wholesale transactions in, and purchases and sales of, Energy Products
         and derivatives thereof, including futures contracts and options on
         futures contracts involving Energy Products (and related services) may
         be effected in whole or in part electronically. Only transactions that
         are to be executed, settled and delivered in North America shall be
         effected on or through the Electronic Energy Marketplace.

         "Energy Products" means natural gas, electricity, coal, sulphur dioxide
         and nitrogen dioxide emissions allowances, and weather financial
         products.

         "North America" means the United States, Canada and Mexico.

         2. The following Defined Terms in Section 1 of the Joint Services
Agreement hereby are amended and replaced in their entirety with the following:

         "Ancillary IT Services" means technology support services (other than
         in respect of the Electronic Energy Marketplace), including, but not
         limited to, (i) systems administration, (ii) internal network support,
         (iii) support and procurement for desktops of end-user equipment, (iv)
         operations and disaster recovery services, (v) voice and data
         communications, (vi) support and development of systems for Clearance,
         Settlement and Fulfillment Services, (vii) systems support for Cantor
         Party brokers, (viii) electronic applications systems and network
         support and development for Unrelated Dealer Businesses and (ix)
         provision and/or implementation of existing electronic applications
         systems, including all improvements and upgrades thereto, and use of
         the related

                                       2
<PAGE>

         intellectual property rights, having potential application
         in a Gaming Business (as defined under "Unrelated Dealer Business"
         below).

         "Collaborative Marketplace" means an Electronic Marketplace that is
         operated by a Cantor Party and an eSpeed Party in collaboration
         pursuant to Section 3 of this Agreement. All Marketplaces shall be
         Collaborative Marketplaces, unless otherwise determined in accordance
         with this Agreement. In no event shall the Electronic Energy
         Marketplace be deemed to be a Collaborative Marketplace for purposes of
         this Agreement.

         "Electronic Marketplace" means a Marketplace on which transactions in,
         and purchases and sales of, Products may be effected in whole or in
         part electronically, but does not include a Marketplace that is merely
         electronically assisted, such as screen assisted open outcry. In no
         event shall the Electronic Energy Marketplace be deemed to be an
         Electronic Marketplace for purposes of this Agreement.

         "Financial Product" means any financial asset or financial instrument,
         any intangible commodity or any tangible fungible commodity, including,
         but not limited to, any security, futures contract, foreign exchange
         transaction, swap transaction, credit derivative, repurchase or reverse
         repurchase obligation, currency or swap (as currently defined in the
         Federal Bankruptcy Code of 1978) or any option or derivative on any of
         the foregoing; provided that in no event shall any Energy Product
         traded on the Electronic Energy Marketplace or any derivative thereof,
         including futures contracts and options on futures contracts involving
         Energy Products traded on the Electronic Energy Marketplace, be
         considered a Financial Product.

         "Marketplace" means a marketplace operated or to be operated by the
         Cantor Parties and/or the eSpeed Parties in and through which buyers
         and sellers of a Product may effect transactions in the Product. In no
         event shall the Electronic Energy Marketplace be deemed to be a
         Marketplace for purposes of this Agreement.

         "Product" means any tangible or intangible asset or good other than an
         Energy Product traded on the Electronic Energy Marketplace or any
         derivative thereof, including futures contracts and options on futures
         contracts involving Energy Products traded on the Electronic Energy
         Marketplace.

         3. Section 7(f) of the Joint Services Agreement hereby is amended and
replaced in its entirety with the following:

                  No eSpeed Party shall, directly, indirectly or in connection
                  with a third Person, engage in any activities competitive with
                  a business activity now or hereafter conducted by a Cantor
                  Party or provide or assist any other Person in providing any
                  Cantor Service, other than (i) in collaboration with a Cantor
                  Party pursuant to Section 3 of this Agreement, (ii) with
                  respect to a new Marketplace involving a

                                       3
<PAGE>

                  Financial Product, after CFLP (x) has indicated that it is
                  unable or unwilling to provide such Cantor Service or (y)
                  fails to indicate to the eSpeed Party within the prescribed
                  30-day period that it does wish to provide such Cantor Service
                  with respect to that Marketplace in accordance with paragraph
                  (d) of this Section 7, (iii) with respect to a new Marketplace
                  involving a Product that is not a Financial Product or an
                  Energy Product traded on the Electronic Energy Marketplace in
                  accordance with paragraph (c) or paragraph (e) of this Section
                  7, (iv) with respect to an Unrelated Dealer Business, other
                  than a Gaming Business, in which an eSpeed Party develops and
                  operates a fully electronic Marketplace or (v) with respect to
                  the Electronic Energy Marketplace.

         4. Section 7(g) of the Joint Services Agreement hereby is amended and
replaced in its entirety with the following:

                  No Cantor Party shall, directly, indirectly or in connection
                  with a third Person, provide or assist any other Person in
                  providing Electronic Brokerage Services, other than (i) in
                  collaboration with eSpeed pursuant to Section 3 of this
                  Agreement, (ii) with respect to a new Marketplace, after
                  eSpeed (x) has indicated that it is unable to develop and put
                  into operation an Electronic Trading System with respect to
                  that new Marketplace in accordance with paragraph (a) of this
                  Section 7 or (y) has declined to exercise its right of first
                  refusal or is unable to develop and put into operation an
                  Electronic Trading System with respect to that new Marketplace
                  in accordance with paragraph (b) of this Section 7, including,
                  without limitation, the time period specified therein, (iii)
                  with respect to an Unrelated Dealer Business or (iv) with
                  respect to the Electronic Energy Marketplace.

         5. Section 7(i) of the Joint Services Agreement hereby is amended and
replaced in its entirety with the following:

                                       4
<PAGE>

                  The Cantor Parties and the eSpeed Parties shall be entitled to
                  and may enter into strategic alliances, joint ventures,
                  partnerships or similar arrangements with Persons and
                  consummate Business Combinations with Persons (all of the
                  foregoing, collectively, "Alliance Opportunities") on the
                  following basis only. If an Alliance Opportunity (i) relates
                  to a Person that directly or indirectly provides Cantor
                  Services and engages in business operations that do not
                  involve Electronic Brokerage Services, then any Cantor Party
                  shall be entitled to consummate a transaction with respect to
                  such an Alliance Opportunity, (ii) relates to a Person that
                  directly or indirectly provides Electronic Brokerage Services
                  and engages in business operation that do not involve any
                  Cantor Service, then any eSpeed Party shall be entitled to
                  consummate a transaction with respect to such an Alliance
                  Opportunity and (iii) is an Alliance Opportunity with respect
                  to a Person other than those described in clauses (i) and (ii)
                  above, then the Cantor Parties and the eSpeed Parties shall
                  cooperate to jointly pursue and consummate a transaction with
                  respect to such Alliance Opportunity on mutually agreeable
                  terms, provided, however that any Alliance Opportunity with
                  TradeSpark with respect to the Electronic Energy Marketplace
                  shall not be considered an Alliance Opportunity and any such
                  Alliance Opportunity with TradeSpark with respect to the
                  Electronic Energy Marketplace shall be specifically permitted
                  in accordance with the terms and conditions agreed to by any
                  eSpeed Party or any Cantor Party. For purposes of this
                  paragraph, a "Business Combination" shall mean, with respect
                  to any Person (other than TradeSpark with respect to the
                  Electronic Energy Marketplace), a transaction initiated by
                  and/or in which a Cantor Party or an eSpeed Party is the
                  acquiror involving (i) a merger, consolidation, amalgamation
                  or combination, (ii) any sale, dividend, split or other
                  disposition of any capital stock or other equity interests (or
                  securities convertible into or exchangeable for or options or
                  warrants to purchase any capital stock or other equity
                  equivalents) of the Person, (iii) any tender offer (including
                  without limitation a self-tender), exchange offer,
                  recapitalization, liquidation, dissolution or similar
                  transaction, (iv) any sale, dividend or other disposition of a
                  significant portion of the assets and properties of the Person
                  (even if less than all or substantially all of such assets or
                  properties), and (v) entering into of any agreement or
                  understanding, or the granting of any rights or options, with
                  respect to any of the foregoing.

         6. Notwithstanding anything else contained herein or in the Joint
Services Agreement to the contrary, in no event shall eSpeed's or CFLP's direct
or indirect relationship with TradeSpark with respect to the Electronic Energy
Marketplace be deemed to be a violation of the Joint Services Agreement.

         7. Except as expressly set forth herein, the Joint Services Agreement
shall remain in full force and effect.

                                       5
<PAGE>

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

                              CANTOR FITZGERALD, L.P.
                              By:      CF Group Management, Inc.,
                                       its Managing General Partner

                                       By: /s/ Howard W. Lutnick
                                           ----------------------
                                       Name: Howard W. Lutnick
                                       Title: President

                              CANTOR FITZGERALD SECURITIES
                              By:      Cantor Fitzgerald, L.P.,
                                       its Managing General Partner

                              By:      CF Group Management, Inc.,
                                       its Managing General Partner

                                       By: /s/ Howard W. Lutnick
                                           ----------------------
                                       Name: Howard W. Lutnick
                                       Title: President

                              CANTOR FITZGERALD & CO.
                              By:      Cantor Fitzgerald Securities,
                                       its Managing General Partner

                              By:      Cantor Fitzgerald, L.P.,
                                       its Managing General Partner

                              By:      CF Group Management, Inc.,
                                       its Managing General Partner

                                       By: /s/ Howard W. Lutnick
                                           ----------------------
                                       Name: Howard W. Lutnick
                                       Title: President

                                       6
<PAGE>

                             CFPH, L.L.C.

                             By: /s/ Howard W. Lutnick
                                 -----------------------
                             Name: Howard W. Lutnick
                             Title: President

                             CANTOR FITZGERALD PARTNERS
                             By:      Cantor Fitzgerald Securities,
                                      its Managing General Partner

                             By:      Cantor Fitzgerald, L.P.,
                                      its Managing General Partner

                             By:      CF Group Management, Inc.,
                                      its Managing General Partner

                                      By: /s/ Howard W. Lutnick
                                          ----------------------
                                      Name: Howard W. Lutnick
                                      Title: President

                             CANTOR FITZGERALD INTERNATIONAL

                             By: /s/ Howard W. Lutnick
                                 -----------------------
                             Name: Howard W. Lutnick
                             Title: President

                             CANTOR FITZGERALD EUROPE

                             By: /s/ Howard W. Lutnick
                                 -----------------------
                             Name: Howard W. Lutnick
                             Title: President:

                                       7
<PAGE>

                              eSPEED, INC.

                              By: /s/ Frederick T. Varacchi
                                  ----------------------------------------
                              Name: Frederick T. Varacchi
                              Title: President

                              eSPEED SECURITIES, INC.

                              By: /s/ Frederick T. Varacchi
                                  ----------------------------------------
                              Name: Frederick T. Varacchi
                              Title: President

                              eSPEED GOVERNMENT SECURITIES, INC.

                              By: /s/ Frederick T. Varacchi
                                  ----------------------------------------
                              Name: Frederick T. Varacchi
                              Title: President

                              eSPEED MARKETS, INC.

                              By: /s/ Frederick T. Varacchi
                                  ----------------------------------------
                              Name: Frederick T. Varacchi
                              Title: President

                              eSPEED INTERNATIONAL LIMITED

                              By: /s/ Frederick T. Varacchi
                                  ----------------------------------------
                              Name: Frederick T. Varacchi
                              Title: PresidentSTOCK PURCHASE AGREEMENT

                                  by and among

                              GLOBAL CROSSING LTD.,

                       GLOBAL CROSSING NORTH AMERICA, INC.

                                       and

                         CITIZENS COMMUNICATIONS COMPANY

                            Dated as of July 11, 2000

<PAGE>
<TABLE>
<CAPTION>
                                                  TABLE OF CONTENTS

                                                                                                               Page
                                                                                                               ----
<S>     <C>                                                                                                      <C>
Article 1.  Purchase and Sale.....................................................................................1
         1.1    General...........................................................................................1
         1.2    Delivery of the Shares............................................................................1
         1.3    Purchase Price; Payment...........................................................................2
         1.4    Post-Closing Adjustment...........................................................................3
         1.5    Resignations......................................................................................5
         1.6    Closing and Closing Date..........................................................................5
         1.7    Taking of Necessary Action; Further Action........................................................5

Article 2.  Representations and Warranties Relating to the Sellers................................................6
         2.1    Organization and Standing.........................................................................6
         2.2    Binding Agreement.................................................................................6
         2.3    Absence of Violations or Required Consents........................................................6
         2.4    Ownership of Stock................................................................................7
         2.5    Entire Business...................................................................................8
         2.6    Financial Information.............................................................................8
         2.7    Title to Assets; Related Matters..................................................................9
         2.8    Absence of Certain Changes, Events and Conditions.................................................9
         2.9    Litigation.......................................................................................10
         2.10  Insurance.........................................................................................10
         2.11  Material Contracts................................................................................11
         2.12  Permits and Licenses; Compliance with Law.........................................................11
         2.13  Environmental Matters.............................................................................12
         2.14  Employee Benefit Matters..........................................................................12
         2.15  Labor Relations...................................................................................14
         2.16  Intellectual Property.............................................................................14
         2.17  Taxes.............................................................................................14
         2.18  Commissions.......................................................................................15
         2.19  Affiliate Transactions............................................................................15
         2.20  Telephone Operations..............................................................................15
         2.21  Long Distance Agreements..........................................................................18

Article 3.  Representations and Warranties of the Buyer..........................................................18
         3.1    Organization and Standing........................................................................18
         3.2    Binding Agreement................................................................................18
         3.3    Absence of Violations or Required Consents.......................................................18
         3.4    Litigation.......................................................................................19
         3.5    Commissions......................................................................................19
         3.6    Financing........................................................................................19
         3.7    Acquisition of Shares for Investment.............................................................19

Article 4.  Covenants and Agreements.............................................................................20
         4.1    Conduct of the Business Prior to Closing; Access.................................................20
         4.2    Financing Commitments............................................................................24
         4.3    Post-Closing Covenants and Agreements............................................................25
         4.4    Cooperation......................................................................................27
         4.5    Confidentiality..................................................................................30
         4.6    Public Announcements.............................................................................30
         4.7    No Solicitation..................................................................................30
         4.8    No Additional Representations....................................................................30
         4.9    Use of Global Crossing and Frontier Names........................................................31
         4.10  Long Distance Agreements..........................................................................31
         4.11  Transition Services...............................................................................32
         4.12  Sublease of Premises in GCNA Building.............................................................34
         4.13  Intercompany Accounts and Guaranties..............................................................35
         4.14  Capital Expenditures..............................................................................35
         4.15  Non-Compete.......................................................................................36
         4.16  Transition Plan...................................................................................37

Article 5.  Conditions to Obligations of the Buyer...............................................................38
         5.1    Representations and Warranties...................................................................38
         5.2    Performance by the Sellers.......................................................................38
         5.3    Certificate......................................................................................38
         5.4    Consents; No Objections..........................................................................38
         5.5    No Proceedings or Litigation.....................................................................39
         5.6    No Material Events...............................................................................39

Article 6.  Conditions to Obligations of the Seller..............................................................39
         6.1    Representations and Warranties...................................................................39
         6.2    Performance by the Buyer.........................................................................39
         6.3    Certificate......................................................................................39
         6.4    Consents; No Objections..........................................................................40
         6.5    No Proceedings or Litigation.....................................................................40
         6.6    Purchase Price Adjustment Limitation.............................................................40

Article 7.  Tax Matters..........................................................................................40
         7.1    Liability for Taxes..............................................................................40
         7.2    Tax Refunds......................................................................................41
         7.3    Adjustment to Purchase Price.....................................................................42
         7.4    Amended Returns..................................................................................42
         7.5    Tax Returns......................................................................................42
         7.6    Tax Contest Provisions...........................................................................43
         7.7    Termination of Tax Allocation Agreements.........................................................44
         7.8    Assistance and Cooperation.......................................................................44
         7.9    Transfer and Conveyance Taxes....................................................................44
         7.10  Global Crossing Options...........................................................................44
         7.11  Carryback of Net Operating Losses.................................................................45
         7.12  Survival..........................................................................................45

Article 8.  Employee Benefit and Labor Matters...................................................................45
         8.1    Continuation of Employee Benefits................................................................45
         8.2    Termination of Participation in Employee Benefit Plans; Defined
                   Benefit Pension Plans.........................................................................46
         8.3    Defined Contribution Plan........................................................................47
         8.4    Post-Retirement Benefits.........................................................................48
         8.5    Collective Bargaining Agreements.................................................................49
         8.6    WARN.............................................................................................49
         8.7    Annual Incentive Compensation....................................................................49

Article 9.  Indemnification......................................................................................50
         9.1    Indemnification by the Sellers...................................................................50
         9.2    Indemnification by the Buyer.....................................................................50
         9.3    Limitations on Indemnification Claims and Liability..............................................50
         9.4    Computation of Claims and Damages................................................................52
         9.5    Notice of Claims.................................................................................52
         9.6    Defense of Third Party Claims....................................................................53
         9.7    Special Indemnification Procedures with Respect to Environmental Matters.........................54
         9.8    Probable Liabilities and Assets Lists............................................................55

Article 10.  Definitions.........................................................................................55

Article 11.  Miscellaneous Provisions............................................................................68
         11.1  Termination Rights................................................................................68
         11.2  Expenses..........................................................................................68
         11.3  Notices...........................................................................................68
         11.4  Benefit and Assignment............................................................................70
         11.5  Waiver............................................................................................70
         11.6  Severability......................................................................................71
         11.7  Amendment.........................................................................................71
         11.8  Effect and Construction of this Agreement.........................................................71
         11.9  Specific Performance..............................................................................71

</TABLE>
<PAGE>

                         INDEX OF ANNEXES AND SCHEDULES

ANNEXES

Annex I  The Companies
Annex II The Company Subsidiaries

SCHEDULES

Schedule 1.3      Performance Adjustment Calculation Methodology
Schedule 4.11     Transition Services
Disclosure Schedule

<PAGE>

                            STOCK PURCHASE AGREEMENT

                  This STOCK PURCHASE  AGREEMENT (this  "Agreement")  made as of
July 11, 2000 by and among Global Crossing Ltd., a company formed under the laws
of  Bermuda  ("Global"),  Global  Crossing  North  America,  Inc.,  a  New  York
corporation  and a wholly owned  subsidiary of Global  ("GCNA" and together with
Global,  the  "Sellers"),   and  Citizens  Communications  Company,  a  Delaware
corporation (the "Buyer").

                              W I T N E S S E T H :
                               -------------------

                  WHEREAS, GCNA is the record and beneficial owner of all of the
capital stock of certain  corporations  (the  "Companies")  that,  together with
their  wholly  owned  subsidiaries,  constitute  the  Frontier  LEC Business (as
hereinafter defined); and

                  WHEREAS,  the  Sellers  desire to sell to the Buyer all of the
outstanding capital stock of the Companies (the "Sale") and the Buyer desires to
purchase from GCNA at the Closing all of the then  outstanding  capital stock of
the  Companies,  in each case upon the terms and subject to the  conditions  set
forth in this Agreement; and

                  WHEREAS, the respective Boards of Directors of the Sellers and
the Buyer  have each  approved  the Sale,  the terms of this  Agreement  and the
transactions contemplated hereby.

                  NOW,  THEREFORE,  in  consideration of the mutual promises and
covenants contained herein, the parties, intending legally to be bound, agree as
follows:

                      [A list of defined terms is provided in Article 10 hereof]

                  Article 1.  Purchase and Sale.
                              -----------------

                  1.1  General.  At the  Closing  (as  defined  in  Section  1.6
hereof), and subject to the terms and conditions of this Agreement,  GCNA agrees
to, and Global agrees to cause GCNA to, sell, assign,  convey and deliver to the
Buyer,  and the Buyer agrees to purchase,  acquire and accept from GCNA,  all of
the outstanding shares of capital stock of the Companies as set forth in Annex I
hereto (the "Shares").

                  1.2 Delivery of the Shares. At the Closing, and subject to the
terms  and  conditions  of this  Agreement,  GCNA  shall  deliver  to the  Buyer
certificates representing all of the Shares, duly endorsed in blank for transfer
or accompanied by stock powers duly executed,  with all necessary stock transfer
stamps  attached  thereto  and  canceled,  and such other  instruments  as shall
reasonably be required to transfer to the Buyer all right, title and interest in
and to the Shares,  free and clear of any security  interests,  pledges,  liens,
charges,  encumbrances,  adverse claims,  restrictions or defects in title.  All
such  certificates,  stock powers and instruments shall be in form and substance
reasonably satisfactory to the Buyer.

<PAGE>

                  1.3 Purchase Price;  Payment.  (a) The  consideration  for the
sale of the Shares shall be the aggregate of (i) $ 3,650,000,000 (Three Billion,
Six  Hundred  Fifty  Million  Dollars),  minus (ii) the  amount of the  Combined
Liabilities  as of  11:59  p.m.,  New York  City  time,  on the day  immediately
preceding the Closing Date (the "Liabilities Adjustment"), plus (if greater than
or equal to zero) or minus (if less than zero) (iii) the amount of the  Combined
Working  Capital as of 11:59 p.m.,  New York City time,  on the day  immediately
preceding the Closing Date (the "Working  Capital  Adjustment"),  minus (iv) the
Performance  Adjustment  set  forth  in  Section  1.3(d),  if  any,  subject  to
adjustment pursuant to Section 1.4 (the "Purchase Price").

                  (b) On or before ten days prior to the  Closing,  the  Sellers
shall deliver to the Buyer a statement  setting  forth the amounts  estimated in
good faith by the Company to be the amounts of the Liabilities  Adjustment,  the
Working  Capital  Adjustment and the Performance  Adjustment,  if any, as of the
Closing Date (collectively, the "Estimated Adjustment") and the estimated amount
of the  aggregate  Purchase  Price  based  upon the  Estimated  Adjustment  (the
"Closing Cash Payment").

                  (c) At the Closing, and subject to the terms and conditions of
this  Agreement,  the Buyer shall pay to GCNA the Closing  Cash  Payment by wire
transfer in immediately  available funds to an account or accounts designated by
GCNA not later than three Business Days prior to the Closing.

                  (d) The "Performance Adjustment," if any, shall be the largest
of (x) the Access Line Deficiency, if any,  (y) the Revenue Deficiency, if  any,
and (z) the EBITDA Deficiency, if any.  For purposes of this Section 1.3(d),

                  (i) The  "Access  Line  Deficiency"  means (A) the  difference
         between the number of Access Lines billed by the  Companies and Company
         Subsidiaries  as of the end of the month most recently  completed prior
         to the Closing Date and 1,071,644  multiplied  by (B) $3,294;  provided
         that  there  shall be no Access  Line  Deficiency  unless the number of
         Access Lines billed by the  Companies  and Company  Subsidiaries  as of
         such date is less than 1,071,644;

                  (ii) The "Revenue Deficiency" means (A) the difference between
         the pro forma  revenue for the  Frontier LEC  Business  (calculated  as
         provided in Schedule 1.3 hereto) for the 12 calendar  months  ending as
         of the end of the month most  recently  completed  prior to the Closing
         Date (the  "Pre-Closing Pro Forma Revenue) and $805,204,000  multiplied
         by (B) 4.38;  provided that there shall be no Revenue Deficiency unless
         the Pre-Closing Pro Forma Revenue is less than $805,204,000; and

<PAGE>
                  (iii) The "EBITDA Deficiency" means (A) the difference between
         the  pro  forma  earnings  before  interest,  taxes,  depreciation  and
         amortization  ("EBITDA")  for  the  Frontier  LEC  Business  (excluding
         non-recurring   revenues  and  expenses   resulting   from  assets  and
         liabilities   being  put  on  the  balance  sheet  in  the  process  of
         determining  the amount of Combined  Liabilities  or  Combined  Working
         Capital and  calculated  as provided in Schedule 1.3 hereto) for the 12
         calendar  months  ending  as of  the  end of the  month  most  recently
         completed  prior  to the  Closing  Date  (the  "Pre-Closing  Pro  Forma
         EBITDA") and $386,769,000  multiplied by (B) 9.13;  provided that there
         shall be no EBITDA  Deficiency  unless the Pre-Closing Pro Forma EBITDA
         is less than $386,769,000.

                  (e)   Notwithstanding   anything  in  this  Agreement  to  the
contrary,  other  than  with  respect  to the  calculation  of  the  Performance
Adjustment  (which  shall be  calculated  without  consideration  of whether any
matter  reflected  in  such  adjustment  also  may be  reflected  in  any  other
adjustment  or payment),  in no event shall the Buyer be entitled to receive any
duplicate  decrease to the Purchase Price under any adjustment  provision hereof
or payment  under any other  Section of this  Agreement  relating  to any single
matter.

                  1.4 Post-Closing Adjustment.  (a) Not later than 75 days after
the  Closing  (or such  later  date on which such  statement  reasonably  can be
prepared  and  delivered  in  light  of the  compliance  of the  Buyer  with its
obligations set forth in next two succeeding sentences), the Sellers shall cause
to be  prepared  and shall  deliver to the Buyer (i) a  statement  of the actual
amount of the Combined  Liabilities as of 11:59 p.m., New York City time, on the
day  immediately  preceding the Closing Date,  the actual amount of the Combined
Working  Capital as of 11:59 p.m.,  New York City time,  on the day  immediately
preceding the Closing Date, the actual amount of the Performance Adjustment,  if
any, and the actual amount of the Purchase  Price derived  thereby (the "Closing
Statement") to be prepared in conformity with GAAP consistently applied and on a
basis  consistent  with the  basis  used in  preparing  the  financial  data and
information  described in clauses (ii) and (iii) of Section 2.6(a) and except as
specifically  required by the definitions of "Combined  Liabilities",  "Combined
Working  Capital" and  "Performance  Adjustment",  (ii) a  determination  of the
amount  (the  "Proposed  Adjustment")  by  which  the  Purchase  Price  as  then
determined  by the Sellers is less than or greater than the Closing Cash Payment
(the amount of such excess or shortfall,  as finally determined,  is referred to
herein as the  "Adjustment"),  (iii) a  statement  of the  Probable  Liabilities
prepared in accordance with Section 9.8 (the "Probable  Liabilities  Statement")
and (iv) a statement of the Probable  Assets prepared in accordance with Section
9.8  (the   "Probable   Assets   Statement"),   in  each   case   certified   by
PricewaterhouseCoopers  LLP, or other  independent  accountants for the Sellers.
The Buyer shall provide the Sellers and their independent  accountants access at
all reasonable times to the relevant personnel, properties, books and records of
the  Frontier  LEC Business in the  possession  of the Buyer and its  Affiliates
(including, without limitation, the Companies and Company Subsidiaries) for such
purposes  and to  assist  the  Sellers  and  their  independent  accountants  in
preparing  the Closing  Statement,  the Probable  Liabilities  Statement and the
Probable  Assets  Statement.  The  Buyer's  assistance  shall  include,  without
limitation,  the  closing of the books of the  Frontier  LEC  Business as of the
Closing,  the  preparation of schedules  supporting the amounts set forth in the
general  ledger and other books and records of the  Frontier LEC  Business,  and
such other  assistance  as the  Sellers  or their  independent  accountants  may
reasonably request.

<PAGE>
                  (b) During the 75-day  period  following  the  delivery by the
Sellers  of  the  Closing  Statement,  the  Proposed  Adjustment,  the  Probable
Liabilities  Statement and the Probable Assets Statement  referred to in Section
1.4(a) (or such  longer  period  during  which  such  statement  and  adjustment
reasonably  can be reviewed in light of the compliance of the Sellers with their
obligations set forth in next two succeeding sentences), the Buyer and KPMG LLP,
independent   accountants  for  the  Buyer  (or  another  nationally  recognized
accounting firm selected by the Buyer that is not also retained by the Sellers),
will be  permitted  to  review  the  working  papers  of the  Sellers  and their
independent  accountants  relating to the preparation of the Closing  Statement,
the Proposed  Adjustment,  the Probable  Liabilities  Statement and the Probable
Assets  Statement.  The  Sellers  shall  provide  the Buyer and its  independent
accountants   access  at  all  reasonable  times  to  the  relevant   personnel,
properties,  books and records of the Frontier LEC Business in the possession of
the Sellers and their  Affiliates  for such purposes and to assist the Buyer and
its  independent  accountants in reviewing the Closing  Statement,  the Probable
Liabilities Statement and the Probable Assets Statement. The Sellers' assistance
shall include,  without limitation,  the preparation of schedules supporting the
amounts  set forth in the  general  ledger  and other  books and  records of the
Frontier LEC Business, and such other assistance as the Buyer or its independent
accountants may reasonably request.

                  (c) Unless the Buyer delivers written notice to the Sellers of
its disagreement  with the Closing  Statement and the Proposed  Adjustment,  the
Probable  Liabilities  Statement  and/or the Probable Assets Statement within 75
days following  delivery by the Sellers of the Closing  Statement,  the Proposed
Adjustment,   the  Probable  Liabilities   Statement  and  the  Probable  Assets
Statement,  the Buyer will be deemed to have  accepted and agreed to the Closing
Statement and Proposed Adjustment, the Probable Liabilities Statement and/or the
Probable Assets Statement,  and such Adjustment,  the Probable  Liabilities List
and/or the  Probable  Assets List shall be final and  binding.  If,  within such
75-day period, the Buyer notifies the Sellers that it disagrees with the Closing
Statement and the Proposed Adjustment, the Probable Liabilities Statement and/or
the Probable Assets  Statement,  and the Sellers and the Buyer cannot agree with
respect to the Closing  Statement  and the  Proposed  Adjustment,  the  Probable
Liabilities Statement and/or the Probable Assets Statement within 14 days of the
notice  of  disagreement  provided  by  the  Buyer  to  the  Sellers,  then  the
determination  shall be  submitted  for  resolution  promptly to an  independent
nationally  recognized  accounting firm jointly  selected by the Sellers and the
Buyer  (the  "Neutral  Auditor"),  whose  determination  (the  "Neutral  Auditor
Determination") shall be instructed by the parties to be made within 30 days and
be final and binding upon all parties hereto.  All fees and expenses relating to
the work,  if any, to be performed  by the Neutral  Auditor will be borne (i) by
the  Buyer  in the  same  proportion  that the  aggregate  amount  of all of the
objections on the Closing Statement,  the Probable Liabilities  Statement and/or
the Probable  Assets  Statement  that are  submitted by the Buyer to the Neutral
Auditor and are  unsuccessfully  disputed by the Buyer, bear to the total amount
of all of such  objections and (ii) by the Sellers in the same  proportion  that
the  aggregate  amount of all of the  objections on the Closing  Statement,  the
Probable  Liabilities  Statement  and/or the Probable Assets  Statement that are
submitted by the Buyer to the Neutral Auditor and are  successfully  disputed by
the Buyer, bear to the total amount of all of such objections. The Buyer and the
Sellers  shall  reimburse  the other to the  extent the other pays more than the
amount so required pursuant to the preceding sentence. In the event of a Neutral
Auditor  Determination,  the Neutral Auditor shall deliver a certificate to each
of the Sellers and the Buyer  setting  forth the amount of the  Adjustment,  the
Probable Liabilities List and/or the Probable Assets List.

<PAGE>
                  (d) If the  Adjustment  provides that the Closing Cash Payment
is greater  than the  Purchase  Price as finally  determined,  then the Purchase
Price shall be reduced to the amount as so determined  and GCNA shall pay to the
Buyer an  amount  equal  to the  amount  of the  Adjustment.  If the  Adjustment
provides  that the  Closing  Cash  Payment  is less than the  Purchase  Price as
finally determined,  then the Purchase Price shall be increased to the amount as
so  determined  and the Buyer shall pay to GCNA an amount equal to the amount of
the  Adjustment.  If the  Adjustment  provides that the Closing Cash Payment was
equal to the Purchase Price as finally determined, then no further payments with
respect to the Purchase Price shall be made. Any payment  required to be made by
GCNA or the Buyer  pursuant to this Section  1.4(d) shall bear interest from the
Closing  Date  through  the date of payment at a rate of  interest  equal to the
prime rate per annum publicly announced from time to time by The Chase Manhattan
Bank,  N.A. at its  principal  office in New York City and shall be made by wire
transfer in immediately  available funds to an account or accounts designated by
the party to receive such payment.

                  1.5  Resignations.  Prior to or at the  Closing,  the  Sellers
will,  upon the  request  of the  Buyer,  obtain  the  removal  or  resignation,
effective  as of the  Closing,  of each of the  directors  and  officers  of the
Companies and Company Subsidiaries so requested.

                  1.6 Closing and Closing Date. Unless this Agreement shall have
been  terminated  and the  transactions  herein  contemplated  shall  have  been
terminated  pursuant to Section 11.1 hereof,  the closing (the "Closing") of the
transactions  herein  contemplated  shall  take  place  ten days  following  the
satisfaction  of the conditions set forth in Sections  5.4(a) and 6.4(a) hereof,
and the  satisfaction or waiver of the other  conditions set forth in Articles 5
and 6 hereof,  other than those that are  satisfied on the Closing  Date,  or at
such other time and date as the Sellers and the Buyer shall agree (such time and
date being referred to herein as the "Closing Date"),  at the offices of Simpson
Thacher & Bartlett,  425 Lexington Avenue,  New York, New York, or at such other
place as the Sellers  and the Buyer shall  agree.  At the  Closing,  each of the
parties  hereto shall take, or cause to be taken,  all such actions and deliver,
or cause to be delivered,  all such  documents,  instruments,  certificates  and
other items as may be required  under this  Agreement or otherwise,  in order to
perform or fulfill all covenants  and  agreements on its part to be performed at
or prior to the Closing Date.

                  1.7 Taking of Necessary  Action;  Further Action.  Each of the
parties shall use its respective reasonable best efforts to take all such action
as may be  necessary  or  appropriate  in order to  effectuate  the  Closing  as
promptly as possible.  If, on or at any time after the Closing Date, any further
reasonable  action is  necessary  or desirable to carry out the purposes of this
Agreement  and to vest the Buyer with full right,  title and  possession  to all
assets, property, rights, privileges, powers, and franchises of the Frontier LEC
Business,  the Sellers  shall take,  and shall  ensure that the  officers of the
Companies are fully  authorized,  in the name of the Companies or otherwise,  to
take, and shall take, all such lawful and necessary action.

<PAGE>

         Article 2.  Representations and Warranties Relating to the Sellers.
                     ------------------------------------------------------

        Each of the Sellers represents and warrants to the Buyer as follows:

                  2.1  Organization  and Standing.  (a) Each of the Sellers is a
company  or a  corporation  duly  incorporated,  validly  existing,  and in good
standing under the laws of the  jurisdiction  of its  organization,  and has all
requisite corporate power and authority to own, lease and operate its properties
and assets and to conduct its business as it is now being conducted.

                  (b) Each of the  Companies and their  respective  Subsidiaries
(the  "Company  Subsidiaries")  is  a  corporation  duly  incorporated,  validly
existing,  and in good standing under the laws of the state of its incorporation
and has all requisite  corporate  power and authority to own,  lease and operate
its  properties  and  assets  and to  conduct  its  business  as it is now being
conducted.  Each of the Companies and the Company Subsidiaries is duly qualified
to do business as a foreign  corporation  and is in good standing under the laws
of each state in which the  operation of its business or ownership of its assets
makes such qualification necessary, except where the failure to so qualify or be
in good standing  would not  reasonably  be expected to have a Material  Adverse
Effect.

                  2.2 Binding  Agreement.  Each of the Sellers has all requisite
corporate  power and  authority  to enter into this  Agreement,  to execute  and
deliver this Agreement, to carry out its obligations hereunder and to consummate
the  transactions  contemplated  hereby.  The  execution  and  delivery  of this
Agreement  by  the  Sellers  and  the  consummation  by  the  Sellers  of  their
obligations  hereunder  have been duly and validly  authorized  by all necessary
corporate and stockholder action on the part of the Sellers.  This Agreement has
been duly executed and delivered on behalf of the Sellers and,  assuming the due
authorization,  execution and delivery by the Buyer,  constitutes a legal, valid
and binding obligation of each of the Sellers enforceable in accordance with its
terms.

<PAGE>

                  2.3 Absence of Violations or Required Consents.  Except as set
forth in Section 2.3 of the Disclosure Schedule and, in the case of clauses (b),
(c)  and  (d),  except  for  such  violations,   breaches,  defaults,  consents,
approvals,    authorizations,    orders,   actions,   registrations,    filings,
declarations,  notifications  and  Encumbrances  that  would not  reasonably  be
expected to have a Material  Adverse  Effect or  materially  impair or delay the
consummation of the transactions  contemplated  hereby, the execution,  delivery
and performance by the Sellers of this Agreement do not and will not (a) violate
or result in the breach or default of any  provision of Global's  memorandum  of
association or bye-laws or the certificates of incorporation or by-laws of GCNA,
the Companies or the Company  Subsidiaries,  (b) violate any Law or Governmental
Order  applicable  to  either  Seller  or any of the  Companies  or the  Company
Subsidiaries or any of their respective properties or assets, (c) except for the
Required Consents, require any consent,  approval,  authorization or other order
of, action by, registration or filing with or declaration or notification to any
Governmental  Authority  or any other  Person or (d) result in any  violation or
breach of,  constitute  a default (or event which with the giving of notice,  or
lapse of time or both, would become a default) under, require any consent under,
or  give  to  others  any  rights  of  termination,   amendment,   acceleration,
suspension,  revocation  or  cancellation  of, or result in the  creation of any
Encumbrance on any of the Sellers',  the Companies' or the Company Subsidiaries'
respective  assets,  or result in the imposition or acceleration of any payment,
time of payment,  vesting or increase in the amount of  compensation  or benefit
payable,  pursuant  to,  any  note,  bond,  mortgage  or  indenture,   contract,
agreement,  lease,  sublease,  license or permit,  or  franchise to which either
Seller  or any  Company  or  Company  Subsidiary  is a party or by  which  their
respective assets are bound.

                  2.4  Ownership of Stock. (a) GCNA is the record and beneficial
owner of  all of the  issued and outstanding  shares of capital stock of each of
the Companies.

                  (b)  One of the  Companies,  Frontier  Subsidiary  Telco  Inc.
("FSTI"), or one or more of the other Company Subsidiaries wholly owned by FSTI,
is the record and beneficial  owner of all of the issued and outstanding  shares
of capital stock of each of the Company Subsidiaries. The issued and outstanding
shares of  capital  stock of each of the  Company  Subsidiaries,  and the record
owners thereof, are set forth in Annex II hereto.

                  (c) Other than this  Agreement,  the  shares of capital  stock
identified in Annex I and Annex II hereto, and rights or interests created by or
suffered to exist by the Buyer,  there are no outstanding  options,  warrants or
other rights of any kind relating to the sale,  issuance or voting of any shares
of capital stock or other ownership interests in any of the Companies or Company
Subsidiaries  or any  securities  convertible  into or  evidencing  the right to
purchase any shares of capital stock or other ownership  interests in any of the
Companies or Company Subsidiaries.

                  (d)  Upon  the  consummation  of the  Sale at the  Closing  as
contemplated by this Agreement, the Sellers will deliver to the Buyer good title
to the Shares free and clear of any security interests, pledges, liens, charges,
encumbrances,  adverse claims,  restrictions or defects in title, other than (i)
security  interests,   pledges,   liens,   charges,   encumbrances,   claims  or
restrictions  created by or suffered to exist by the Buyer and (ii) requirements
of federal and state securities Laws and utilities, telecommunications and other
Laws respecting limitations on the subsequent transfer thereof.

                  (e)  Except  as set  forth in  Section  2.4 of the  Disclosure
Schedule, other than the Company Subsidiaries,  none of the Companies or Company
Subsidiaries  owns any shares of capital stock or other  ownership  interests in
any other Person or any options,  warrants or other securities,  or other rights
of any kind,  convertible into or evidencing the right to purchase any shares of
capital stock or other ownership interests in any other Person.

<PAGE>

                  2.5 Entire Business. Except as disclosed in Section 2.5 of the
Disclosure  Schedule  and except for such  matters  that are not material to the
Frontier LEC Business (and, in each case, such  exceptions  being subject to (i)
an obligation of the Sellers to use their  reasonable best efforts to effect the
actions required by Section 2.5 of the Disclosure  Schedule prior to the Closing
and (ii) the  obligations  of the Sellers  pursuant to Section 1.7 to the extent
that any such required actions have not been effected prior to the Closing), the
Sellers'  ownership of the  Frontier  LEC  Business is  evidenced  solely by the
Shares and the sale,  assignment,  conveyance  and delivery of the Shares to the
Buyer or its permitted  assignee pursuant to this Agreement will transfer all of
the Sellers' and their Affiliates'  ownership interests  comprising the Frontier
LEC Business.

                  2.6  Financial  Information.  (a)  The  (i)  business  segment
information for the Frontier LEC Business  (identified as "Local  Communications
Services") (x) for the three fiscal years ended December 31, 1996, 1997 and 1998
included in the audited  consolidated  financial  statements  of GCNA  (formerly
named Frontier Corporation) incorporated by reference in GCNA's Annual Report on
Form  10-K  for  the  fiscal  year  ended  December  31,  1998  and  (y) for the
three-month  periods and  nine-month  periods ended  September 30, 1998 and 1999
included in the unaudited  consolidated financial statements of GCNA included in
GCNA's  Quarterly  Report on Form 10-Q for the quarterly  period ended September
30, 1999; (ii) segment financial data for the Frontier LEC Business  (identified
as "Incumbent  Local  Exchange  Carrier  Services")  set forth in Note 19 to the
audited consolidated  financial statements of Global included in Global's Annual
Report on Form 10-K for the  fiscal  year ended  December  31,  1999;  and (iii)
business  segment  information  for the  Frontier LEC  Business  (identified  as
"Incumbent  Local Exchange Carrier  Services") for the three-month  period ended
March 31, 2000 included in the unaudited  consolidated  financial  statements of
Global  included in  Global's  Quarterly  Report on Form 10-Q for the  quarterly
period ended March 31, 2000 (in each case subject to the  information  set forth
in the notes to such financial statements) fairly state in all material respects
in relation to the basic  financial  statements  taken as a whole the  financial
information or data set forth therein (subject, in the case of unaudited interim
financial statements,  to normal year-end adjustments) and have been prepared in
conformity  with GAAP applied on a consistent  basis (except as may be indicated
in the notes to such financial statements).

                  (b) The  Sellers  have  furnished  to the Buyer the  financial
statements  of certain of the Companies  and Company  Subsidiaries  contained in
filings with PUCs under  applicable  regulatory Laws as listed in Section 2.6 of
the Disclosure Schedule (the "Regulatory Financial Statements").  The Regulatory
Financial  Statements  have been prepared  based on the books and records of the
relevant Company or Company Subsidiary in all material respects.  Such books and
records have been  maintained in all material  respects in  accordance  with the
Uniform  System of Accounts,  GAAP and,  where  required by Law, the  applicable
regulations of the FCC and relevant PUCs; however,  because each such Company or
Company Subsidiary  represents only a portion of a larger entity, the Regulatory
Financial   Statements   are  based  on  the  extensive  use  of  estimates  and
allocations.  The Sellers believe that these estimates and allocations have been
performed on a reasonable  basis  consistent  in all material  respects with the
Uniform  System of Accounts,  GAAP and,  where  required by Law, the  applicable
regulations of the FCC and relevant PUCs.

<PAGE>

                  2.7 Title to Assets;  Related  Matters.  Except for  Permitted
Exceptions or as disclosed in Section 2.7 of the Disclosure  Schedule and except
for such  matters  that  would not  reasonably  be  expected  to have a Material
Adverse Effect, (i) the Companies and the Company  Subsidiaries have good, valid
and marketable  title (as measured in the context of their current uses) to, or,
in the case of leased or subleased assets or other possessory  interests,  valid
and  subsisting  leasehold  or other  possessory  interests  (as measured in the
context of their  current  uses) in, or otherwise  have the right to use, all of
the assets of the  Frontier  LEC  Business,  free and clear of all  Encumbrances
(except for any assets sold or  otherwise  disposed of, or with respect to which
the lease,  sublease  or other  right to use such asset has  expired or has been
terminated,  in each case after the date hereof  solely to the extent  permitted
under Section  4.1(a)  hereof),  (ii) such assets  constitute all the assets and
rights  necessary  for the  operation  of the Frontier LEC Business as currently
conducted, including, without limitation, all interoffice network facilities and
related electronic  equipment used in the Frontier LEC Business,  (iii) the Real
Property and Equipment are in good operating condition and repair and maintained
in accordance with customary procedures of the Frontier LEC Business taking into
account the age thereof and (iv) to the  knowledge of the Sellers,  there are no
contractual or legal restrictions to which either Seller or any of the Companies
or Company  Subsidiaries  is a party or by which the Real  Property is otherwise
bound that preclude or restrict the Companies' or Company  Subsidiaries' ability
to use the Real Property for the purposes for which it is currently being used.

                  2.8 Absence of Certain Changes,  Events and Conditions.  Since
December  31,  1999,  except as otherwise  provided in or  contemplated  by this
Agreement or as disclosed in Section 2.8 of the  Disclosure  Schedule  and, with
respect to clauses (a),  (b),  (d),  (f), (g) and (h) (to the extent  clause (h)
refers to clause (a),  (b),  (d),  (f) or (g)),  except for such  matters  that,
individually  or in the  aggregate,  would not  reasonably be expected to have a
Material Adverse Effect:

                  (a) other than in the ordinary  course of business  consistent
         with  past  practice,   neither  Seller  nor  any  Company  or  Company
         Subsidiary  has  sold,  transferred,   leased,   subleased,   licensed,
         encumbered  or  otherwise  disposed of any assets of the  Frontier  LEC
         Business,  other than the sale of obsolete  Equipment  and transfers of
         cash;

                  (b) (i) neither  Seller nor any Company or Company  Subsidiary
         has granted any  increase,  or announced  any  increase,  in the wages,
         salaries, compensation,  bonuses, incentives, pension or other benefits
         payable  to  any of the  officers  or  employees  of the  Frontier  LEC
         Business,   including,  without  limitation,  any  increase  or  change
         pursuant to any Employee Benefit Plan, or (ii)  established,  increased
         or  accelerated  the  payment  or  vesting  of any  benefits  under any
         Employee Benefit Plan with respect to officers or employees,  in either
         case except (A) as required by Law,  (B) that  involve  only  increases
         consistent  with the past  practices of the Frontier LEC Business,  (C)
         that involve only increases in the ordinary course of business,  (D) as
         required  under  any  existing  agreement  or  arrangement  or (E) that
         involve increases related to promotions;

                  (c) neither  Seller nor any Company or Company  Subsidiary has
         made any  material  change in any method of  accounting  or  accounting
         practice or policy used by the  Sellers,  the  Companies or the Company
         Subsidiaries  with  respect to the Frontier  LEC  Business,  including,
         without  limitation,  material  changes in  assumptions  underlying  or
         methods of  calculating  bad debt,  contingency or other  reserves,  or
         notes or accounts  receivable  write-offs,  or in corporate  allocation
         methodology,  in each case other than changes  required by Law or under
         GAAP;

<PAGE>

                  (d) neither  Seller nor any Company or Company  Subsidiary has
         suffered any casualty  loss or damage with respect to any assets of the
         Frontier LEC Business, whether or not covered by insurance;

                  (e)  there has not been any Material Adverse Effect;

                  (f)  the Frontier LEC Business has been conducted only  in the
         ordinary and usual course consistent with past practice;

                  (g) neither  Seller nor any Company or Company  Subsidiary has
         compromised,  settled,  granted any waiver or release  relating  to, or
         otherwise  adjusted  any Action,  Indebtedness  or any other  claims or
         rights of the Frontier LEC Business; and

                  (h) neither  Seller nor any Company or Company  Subsidiary has
         entered into any agreement,  contract,  commitment or arrangement to do
         any of the foregoing.

                  2.9  Litigation.  Except as  disclosed  in Section  2.9 of the
Disclosure  Schedule and except for such matters  that would not  reasonably  be
expected to have a Material Adverse Effect, as of the date hereof, (i) there are
no Actions against either Sellers or any Company or Company Subsidiary  pending,
or, to the  knowledge of the Sellers,  threatened to be brought by or before any
Governmental  Authority, in each case with respect to the Frontier LEC Business,
(ii)  neither  Seller nor any  Company or Company  Subsidiary  is subject to any
Governmental  Order (nor,  to the  knowledge of the Sellers,  are there any such
Governmental Orders threatened to be imposed by any Governmental Authority),  in
each case with respect to the Frontier LEC Business and (iii) there is no Action
pending,  or, to the knowledge of the Sellers,  threatened to be brought  before
any  Governmental  Authority,  that  seeks to  question,  delay or  prevent  the
consummation of the transactions contemplated hereby.

                  2.10 Insurance.  Except as set forth in either Section 2.10 or
Section 2.14 of the  Disclosure  Schedule and except for such matters that would
not reasonably be expected to have a Material Adverse Effect,  (i) all insurance
policies  to which any Company or Company  Subsidiary  is a party or under which
such Company or Company  Subsidiary is covered as an additional named insured or
otherwise (or replacement  policies  therefor) are in full force and effect, and
the related  Seller or such Company or Company  Subsidiary has paid all premiums
due and is not in default,  (ii) no notice of cancellation  or non-renewal  with
respect  to,  or  disallowance  of any claim  under,  any such  policy  has been
received by the related  Seller or such Company or Company  Subsidiary and (iii)
neither Seller nor any Company or Company  Subsidiary has been refused insurance
with respect to the Frontier LEC Business,  nor has coverage with respect to the
Frontier LEC Business  been  previously  canceled or materially  limited,  by an
insurer to which a Seller or such Company or Company  Subsidiary has applied for
such insurance, or with which a Seller or such Company or Company Subsidiary has
held insurance, within the last three years.

<PAGE>

                  2.11 Material  Contracts.  Except as set forth in Section 2.11
of the  Disclosure  Schedule  and  except  for  such  matters  which  would  not
reasonably be expected to have a Material  Adverse  Effect,  (i) Section 2.11 of
the Disclosure Schedule sets forth all Material Contracts as of the date hereof,
(ii)  each  agreement,   contract,   policy,  plan,   mortgage,   understanding,
arrangement or commitment of any Company or Company  Subsidiary that is intended
to be  binding  upon the  parties  thereto  is legal,  valid and  binding on the
Company or  Company  Subsidiary  party  thereto  and,  to the  knowledge  of the
Sellers,  the other parties  thereto,  enforceable in accordance  with the terms
thereof,  (iii) no Company or Company  Subsidiary  is in default  under any such
agreement,  contract,  policy,  plan,  mortgage,  understanding,  arrangement or
commitment and (iv) to the knowledge of the Sellers,  no other party to any such
agreement,  contract,  policy,  plan,  mortgage,  understanding,  arrangement or
commitment has breached or is in default thereunder.

                  2.12 Permits and Licenses;  Compliance with Law. (a) Except as
disclosed in Section 2.12 of the Disclosure Schedule and except for such matters
that would not reasonably be expected to have a Material Adverse Effect, (i) the
Companies and Company  Subsidiaries  currently  hold all the permits,  licenses,
authorizations,   certificates,   exemptions   and  approvals  of   Governmental
Authorities  or  other  Persons  including,  without  limitation,  Environmental
Permits,  necessary  for the current  operation  and the conduct (as it is being
conducted prior to the Closing Date) of the Frontier LEC Business (collectively,
"Permits"),  and all Permits are in full force and effect,  (ii) neither  Seller
nor any Company or Company  Subsidiary  has received any written notice from any
Governmental Authority revoking, canceling, rescinding,  materially modifying or
refusing to renew any Permit and (iii) the Sellers and the Companies and Company
Subsidiaries are in compliance with the requirements of all Permits.

                  (b)  Except as  disclosed  in Section  2.12 of the  Disclosure
Schedule and except for such matters  that would not  reasonably  be expected to
have a Material Adverse Effect,  (i) the Sellers,  the Companies and the Company
Subsidiaries  are in compliance with all Laws  (including,  without  limitation,
with respect to affiliate  transactions) and Governmental Orders applicable,  to
the knowledge of the Sellers,  to the conduct of the Frontier LEC Business as it
is being  conducted  prior to the Closing Date and (ii)  neither  Seller nor any
Company  or  Company  Subsidiary  has been  charged  since  July 1,  1997 by any
Governmental  Authority  with a violation of any Law or any  Governmental  Order
relating  to the conduct of the  Frontier  LEC  Business  which  charge  remains
unresolved.

                  (c)  Except as  disclosed  in Section  2.12 of the  Disclosure
Schedule and except for such matters  that would not  reasonably  be expected to
have  a  Material  Adverse  Effect,  (i)  each  of  the  Companies  and  Company
Subsidiaries  maintains  effective tariffs for services that they offer that are
subject  to  tariff  requirements,  (ii)  each  of  the  Companies  and  Company
Subsidiaries  offers its tariffed services in a manner consistent with the filed
tariff,  (iii)  other  than  orders  and other  requirements  of Law  applicable
generally to local exchange carriers or another subset of carriers,  no order or
other  requirement  of Law has been received by a Company or Company  Subsidiary
concluding  that its  tariff is  unlawful,  (iv)  other  than  orders  and other
requirements of Law applicable  generally to local exchange  carriers or another
subset of carriers,  no order or other requirement of Law has been received by a
Company or Company Subsidiary since December 31, 1999 suspending a tariff, which
suspension  remains  in effect as of the date  hereof and (v) each  Company  and
Company  Subsidiary  with a tariff in effect  has  taken  steps in the  ordinary
course of business to maintain the  effectiveness  of its tariffs and to enforce
applicable   terms  and  conditions  in  a  manner  that  is  not   unreasonably
discriminatory.

<PAGE>

                  2.13  Environmental  Matters.  Except as  disclosed in Section
2.13 of the  Disclosure  Schedule  and  except for such  matters  that would not
reasonably be expected to have a Material  Adverse  Effect,  to the knowledge of
the Sellers, (i) Hazardous Materials have not been Released on any Real Property
except in compliance with applicable Law; (ii) there have been no events related
to the  Companies,  the Company  Subsidiaries  or the Real  Property  that would
reasonably be expected to give rise to liability  under any  Environmental  Law;
(iii) the Sellers,  the Companies and the Company Subsidiaries are now, and have
for the past three years been, in compliance  with all applicable  Environmental
Laws  relating to the Frontier  LEC Business and there are no extant  conditions
that would reasonably be expected to constitute an impediment to such compliance
in the future; (iv) the Sellers, the Companies and the Company Subsidiaries have
disposed of all wastes containing  Hazardous Materials arising from or otherwise
relating  to the  Frontier  LEC  Business,  in  compliance  with all  applicable
Environmental  Laws  (including the filing of any required  reports with respect
thereto)  and  Environmental  Permits;  (v) there are no pending  or  threatened
Environmental   Claims  against  the  Sellers,  the  Companies  or  the  Company
Subsidiaries relating to the Real Property or the operations of the Frontier LEC
Business;  (vi) there is no  environmental  remediation  or other  environmental
response occurring on any Real Property (including any easements,  rights-of-way
or other  possessory  interests  in the real  property  of  others)  nor has any
Company  or  Company  Subsidiary  issued a request  for  proposal  or  otherwise
requested an environmental  contractor to begin plans for any such environmental
remediation  or other  environmental  response;  and (vii) no Company or Company
Subsidiary  has  received  any notice,  or has  knowledge  of any  circumstances
related to liability, under CERCLA or any analogous state law.

<PAGE>

                  2.14 Employee Benefit  Matters.  The Sellers have delivered or
made available to the Buyer copies of all Employee  Benefit  Plans,  which plans
are set forth in Section 2.14 of the Disclosure Schedule. Except as set forth in
Section 2.14 of the Disclosure Schedule,  all such Employee Benefit Plans are in
compliance with the terms of the applicable plan and the requirements prescribed
by applicable law currently in effect with respect thereto,  and each Seller and
each of the Companies and Company Subsidiaries has performed in all respects all
obligations  required to be performed by it under,  where any such noncompliance
or nonperformance would be reasonably expected to result in liability that would
have a Material Adverse Effect.  The pool of Union Employees who are potentially
eligible  to qualify for  Post-Retirement  Welfare  Benefits is frozen.  Neither
Seller nor any Company or Company Subsidiary has incurred, and, to the knowledge
of the Sellers, no event,  transaction or condition has occurred or exists which
is  reasonably  expected to result in the  occurrence  of, any  liability to the
Pension Benefit Guaranty  Corporation  (other than contributions to the plan and
premiums to the Pension Benefit Guaranty Corporation,  which in either event are
not in default) or any "withdrawal liability" within the meaning of Section 4201
of  ERISA,  or any  other  liability  pursuant  to Title I or IV of ERISA or the
penalty,  excise  tax or joint  and  several  liability  provisions  of the Code
relating to employee  benefit  plans,  in any such case relating to any Employee
Benefit Plan or any pension plan maintained by any company that would be treated
as a single employer with the Sellers, the Companies or the Company Subsidiaries
under  Section 4001 of ERISA or Section 414 of the Code (an "ERISA  affiliate"),
where  individually  or in the  aggregate,  in  any of  such  events,  any  such
liability would be reasonably expected to have a Material Adverse Effect. Except
as set forth in Section 2.14 of the Disclosure  Schedule,  each Employee Benefit
Plan intended to be "qualified" within the meaning of Section 401(a) of the Code
has received a favorable determination letter that such plan is so qualified and
the trusts  maintained  thereunder are exempt from taxation under Section 501(a)
of the Code, the Sellers have not received any notices from the Internal Revenue
Service  that any such plan is not so  qualified,  and, to the  knowledge of the
Sellers, each such plan is so qualified in form and in operation.  Except as set
forth in  Section  2.14 of the  Disclosure  Schedule,  the  consummation  of the
transactions  contemplated by this Agreement will not (i) entitle any current or
former  employee  or officer of any Company or Company  Subsidiary  or any ERISA
affiliate to severance pay, unemployment  compensation or other payment,  except
as expressly provided in this Agreement,  or (ii) accelerate the time of payment
or vesting,  or increase  the amount of  compensation  due any such  employee or
officer.  There are no pending, or, to the knowledge of the Sellers,  threatened
or  anticipated  claims by or on behalf of any  Employee  Benefit  Plan,  by any
employee or beneficiary  covered under any such plan, or otherwise involving any
such plan (other  than  routine  claims for  benefits)  where any such  pending,
threatened or anticipated claims would reasonably be expected to have a Material
Adverse  Effect.  Except as  specifically  identified in Section  2.14,  neither
Company nor any Company Subsidiary,  nor Sellers contribute in any multiemployer
plan (within the meaning of Section  3(37) of ERISA) for the benefit of Business
Employees; and to the extent that they do so contribute,  all contributions that
are required under the terms of any applicable  collective  bargaining agreement
or plan to be contributed  prior to the Closing Date will have been  contributed
as of the Closing Date. All contributions  that are due on or before the Closing
Date to any other Employee Benefit Plans,  including  without  limitation salary
reduction contributions and matching  contributions,  will have been contributed
or accrued as of the Closing Date (to the extent such accrual is required  under
GAAP),  except  where the failure to do so would not be  reasonably  expected to
have a Material  Adverse  Effect.  Neither  Seller nor any  Companies or Company
Subsidiaries  shall grant any additional  equity-based  awards to any current or
former directors of the Companies or Company Subsidiaries.

<PAGE>

                  2.15 Labor Relations.  Section 2.15 of the Disclosure Schedule
sets forth a list of all labor  organizations  recognized  as  representing  the
employees  of the  Frontier LEC  Business.  Complete and accurate  copies of all
collective  bargaining agreements and other labor union contracts between either
Sellers or any Company or Company  Subsidiary  and any such labor  organizations
have been delivered or made  available to the Buyer.  Other than as set forth in
Section 2.15 of the  Disclosure  Schedule and except for such matters that would
not reasonably be expected to have a Material Adverse Effect, (i) neither Seller
nor any  Company or Company  Subsidiary  is party to any  collective  bargaining
agreement or other labor union contract  applicable to employees of the Frontier
LEC Business, (ii) there are no strikes, slowdowns or work stoppages pending or,
to the knowledge of the Sellers,  threatened  between the Sellers or any Company
or Company  Subsidiary  and any employees of the Frontier LEC Business,  and the
Frontier LEC Business has not  experienced  any such strike,  slowdown,  or work
stoppage  within the past two years,  (iii) there are no unfair  labor  practice
complaints  pending against either Sellers or any Company or Company  Subsidiary
relating to employees of the  Frontier  LEC Business  before the National  Labor
Relations Board or any other Governmental  Authority or, to the knowledge of the
Sellers, any current union  representation  questions involving employees of the
Frontier LEC Business and (iv) to the knowledge of the Sellers, the Frontier LEC
Business is in compliance in all respects  with its  obligations  under all Laws
and Governmental Orders governing its employment practices,  including,  without
limitation, provisions relating to wages, hours and equal opportunity.

                  2.16  Intellectual  Property.  Except as  disclosed in Section
2.16 of the  Disclosure  Schedule  and  except for such  matters  that would not
reasonably  be expected  to have a Material  Adverse  Effect,  (i) the rights of
either  Sellers or any Company or Company  Subsidiary in or to the  Intellectual
Property do not conflict with or infringe on the rights of any other Person, and
neither Seller nor any Company or Company Subsidiary has received any claim from
any Person to such effect, (ii) the Companies and the Company  Subsidiaries own,
are licensed or otherwise  have the right to use, and as of the Closing Date the
Companies and the Company  Subsidiaries  will own, be licensed or otherwise have
the right to use, all  Intellectual  Property and (iii) to the  knowledge of the
Sellers,  no other Person is  infringing  or diluting the rights of the Sellers,
the  Companies  or the Company  Subsidiaries  with  respect to the  Intellectual
Property.

                  2.17  Taxes.  Except  as  disclosed  in  Section  2.17  of the
Disclosure  Schedule and except for such matters  that would not  reasonably  be
expected to have a Material  Adverse Effect,  (a) all Tax Returns required to be
filed by the Sellers,  the Companies or the Company Subsidiaries with respect to
the Frontier LEC Business  have been timely  filed;  (b) all Taxes shown on such
Tax  Returns  have been  timely  paid  other  than such  Taxes,  if any,  as are
described in Section 2.17 of the Disclosure  Schedule and are being contested in
good faith and as to which  adequate  reserves  (determined  in accordance  with
GAAP)  have been  provided  in the  financial  statements  of the  Frontier  LEC
Business;  (c) no audits with respect to the  Companies or Company  Subsidiaries
are in process, pending or threatened in writing, no deficiencies or adjustments
to Tax Returns  exist or have been  asserted in writing with respect to Taxes of
the  Companies or Company  Subsidiaries,  no notice has been received in writing
that any Tax Return or Taxes of the Companies or Company  Subsidiaries  required
to be filed or paid has not been  filed or has not been  paid;  (d) there are no
Tax liens on any of the assets of the  Frontier  LEC  Business  or shares of the
Companies or Company  Subsidiaries  (other than liens for Taxes that are not yet
due and  payable);  (e) all Taxes that the  Frontier LEC Business is required to
withhold  or collect  have been duly  withheld or  collected  and, to the extent
required, have been paid to the proper Tax authority;  (f) none of the Companies
or  Company  Subsidiaries  (i) is  currently  or has ever  been a  member  of an
affiliated  group  (other than a group the common  parent of which is any of the
Sellers)  filing a  consolidated  federal  income  tax  return  and (ii) has any
liability  for the  Taxes  of any  person  under  Treasury  Regulations  Section
1.1502-6  (or any  similar  provision  of state,  local or foreign  law),  or as
transferee  or  successor,  by  contract  or  otherwise;  (g) all Tax sharing or
similar  agreements  shall be terminated  as of the Closing Date and,  after the
Closing Date, the Companies and Company  Subsidiaries shall not be bound thereof
or have any liability thereunder; and (h) no consent under Section 341(f) of the
Code  has  been  filed  with  respect  to  any  of  the   Companies  or  Company
Subsidiaries.

<PAGE>

                  2.18  Commissions.  With the  exception of any  responsibility
that the Sellers have to Chase Securities Inc. and to Merrill Lynch & Co., whose
fees will be paid by the  Sellers,  there is no broker or finder or other Person
who has any valid claim  against any Company or Company  Subsidiary,  the Buyer,
any of their  respective  Affiliates  or any of their  respective  assets  for a
commission,  finders' fee, brokerage fee or other similar fee in connection with
this  Agreement,  or the  transactions  contemplated  hereby,  by  virtue of any
actions  taken by on or  behalf  of the  Sellers,  the  Companies,  the  Company
Subsidiaries or any of their respective officers, employees or agents.

                  2.19  Affiliate  Transactions.  Except as set forth in Section
2.19 of the Disclosure  Schedule,  except as otherwise  provided or permitted in
this  Agreement or entered into in the  ordinary  course of business  consistent
with past  practice,  and except for such matters which would not  reasonably be
expected to have a Material Adverse Effect, since September 29, 1999 neither the
Sellers nor any  Affiliate  thereof that is not one of the  Companies or Company
Subsidiaries  has  engaged  in any  transaction  with  any  Company  or  Company
Subsidiary,  and neither Seller nor any Affiliate thereof that is not one of the
Companies or Company  Subsidiaries is a party to any agreements or arrangements,
including,  without limitation,  co-location or interconnection agreements, with
any Company or Company Subsidiary that will continue in effect after the Closing
Date for the Companies or Company  Subsidiaries  that are not  terminable by the
Companies or Company  Subsidiaries  at will without cost,  penalty or premium to
the Companies and Company Subsidiaries.

                  2.20 Telephone Operations. Except as disclosed in Section 2.20
of the Disclosure Schedule and except for such matters that,  individually or in
the  aggregate,  would not  reasonably  be expected  to have a Material  Adverse
Effect:

                  (a) The  financial  information  for the Frontier LEC Business
         set forth in Annex A to Section  2.20 of the  Disclosure  Schedule  (i)
         with respect to the historical (actual)  information as of December 31,
         1995,  1996,  1997,  1998 and 1999 and each of the  fiscal  years  then
         ended,  fairly states the financial  information  set forth therein and
         has been prepared in conformity with GAAP applied on a consistent basis
         and (ii) with respect to the pro forma  information for the fiscal year
         ended  December 31, 1999, has been prepared in good faith by subjecting
         the historical (actual)  information for the fiscal year ended December
         31,  1999 set forth in such  Annex A to the  adjustments  described  in
         Section 2.20 of the Disclosure Schedule.

                  (b) The  schedule  of  corporate  and  information  technology
         charges  of the  Frontier  LEC  Business  for the  fiscal  years  ended
         December  31, 1998 and 1999 set forth in Annex B to Section 2.20 of the
         Disclosure  Schedule fairly states such  information in relation to the
         basic financial information based upon the cost allocation  methodology
         described therein.

                  (c) The information for the Frontier LEC Business set forth in
         Annex C to Section 2.20 of the Disclosure  Schedule (i) with respect to
         the pro forma  information for the fiscal year ended December 31, 1999,
         has been prepared in good faith by subjecting the  historical  (actual)
         information  for  the  fiscal  year  ended  December  31,  1999  to the
         adjustments  described in Section 2.20 of the  Disclosure  Schedule and
         (ii) with respect to the number of Access Lines, is a true statement of
         the approximate number of such Access Lines as of December 31, 1999.

<PAGE>

                  (d) The  financial  information  for the Frontier LEC Business
         set forth in Annex D to Section  2.20 of the  Disclosure  Schedule  (i)
         with  respect to  historical  (actual)  information  as of December 31,
         1995,  1996, 1997 and 1998 and each of the fiscal years then ended, has
         been  prepared  in good faith  based upon the books and  records of the
         Frontier  LEC  Business  and,  taken as a  whole,  fairly  states  such
         information in all material respects in relation to the basic financial
         information  and (ii) with respect to the pro forma  information  as of
         December 31, 1999 and for the fiscal year then ended, has been prepared
         in good faith  based upon the books and  records  of the  Frontier  LEC
         Business after subjecting the historical (actual)  information for such
         fiscal  year  to the  adjustments  described  in  Section  2.20  of the
         Disclosure  Schedule and,  taken as a whole,  the  historical  (actual)
         financial  information  set  forth in such  Annex  fairly  states  such
         information in all material respects in relation to the basic financial
         information.

                  (e) Except as required by Law or by pool requirements  applied
         generally to carriers or a subgroup of carriers,  no Company or Company
         Subsidiary has been given written notice by any regulatory authority or
         pool  administrator  advising it that  amounts  paid to such Company or
         Company  Subsidiary  are  required  to be  repaid  into a pool  or that
         amounts  payable to such Company or Company  Subsidiary are going to be
         reduced.

                  (f) No Company or Company  Subsidiary  has  received  an order
         from any  regulatory  authority  requiring  it to make  refunds  to its
         retail customer base or any significant portion thereof.

                  (g) No Company or Company  Subsidiary has been made subject to
         any  order  from  any  regulatory  authority  requiring  it to  make  a
         reduction to rates generally  applicable to its retail customer base or
         any significant portion thereof.

                  (h) No Company or Company  Subsidiary has been made subject to
         a moratorium  preventing it from seeking an increase in rates for basic
         services.

                  (i)  No  Company  or  Company  Subsidiary  is  subject  to any
         requirement  of Law solely  applicable  to it and not to any carrier or
         any subgroup of carriers  which  requires it to make specific  material
         network investments in connection with the Frontier LEC Business.

                  (j) No host or hub  switch of a Company  or a  Subsidiary  has
         exhausted  its capacity to serve the customers who are currently in the
         area for  which the  switch is  intended  to be used,  except  switches
         scheduled  for upgrade or expansion  during  calendar year 2000 or 2001
         (which  upgrades  and  expansions  are  included  in the amounts of the
         relevant capital expenditure budgets set forth in Section 4.4).

                  (k) The switches of each Company and Company  Subsidiary  used
         in the telephone service areas covered by the Frontier LEC Business are
         Class 5 compliant, can support the utilization of SS7 signaling and are
         equipped for the provision of CLASS services.

<PAGE>

                  (l) The  Companies and Company  Subsidiaries  operating in the
         Rochester,  New York area  telephone  service  area utilize 20 main hub
         central offices, each of which is interconnected directly or indirectly
         to the other switches through SONET rings using Nortel OC-48 equipment.
         The Companies and Company Subsidiaries operating in the Rochester,  New
         York area  telephone  service  area  have  features  in place  that are
         available to support  local number  portability,  enhanced 911 services
         and cellular 911 services.

                  (m)  The  Companies  and  Company  Subsidiaries  operating  in
         telephone service areas outside the Rochester,  New York market utilize
         switches  that are Class 5  compliant,  and are  compatible  with CLASS
         features  and SS7  signaling.  Where  required  by an  order  or  other
         requirements  of Law,  such  Companies  and Company  Subsidiaries  have
         installed features that support local number portability,  enhanced 911
         services and cellular 911 services.

                  (n) The  regulatory  books of  account  of the  Companies  and
         Company  Subsidiaries  have been  maintained in accordance  with normal
         business  practices,  and accurately and fairly reflect in all material
         respects all of the properties,  assets, liabilities,  transactions and
         regulatorily  required appropriate accruals of each Company and Company
         Subsidiary. The continuing property records (CPRs) and other regulatory
         records  related to the  assets and  properties  of the  Companies  and
         Company   Subsidiaries   maintained   by  the   Companies  and  Company
         Subsidiaries conform in all material respects with the applicable rules
         and  regulations  of the FCC and  applicable  PUCs.  The records of the
         Companies  and Company  Subsidiaries  relating to Telephone  Plant (the
         assets used primarily in the local  exchange  carrier  operations  that
         would be properly included in the fixed assets referenced in Part 32 of
         the FCC Rules and Regulations (47 C.F.R.,  Part 32)) have been prepared
         in good faith and fairly reflect all such Telephone Plant.

                  (o) A true and  complete  list of the  approximate  number  of
         Access Lines of the Companies and Company Subsidiaries in service as of
         May 31, 2000, broken down by the categories  specified therein,  is set
         forth in Section 2.20 of the Disclosure Schedule.

                  2.21 Long Distance Agreements. On or prior to the date hereof,
Subsidiaries of Global have entered into the Carrier Services  Agreement,  dated
as of June 19, 2000 (the "Carrier Services  Agreement"),  and the Asset Purchase
Agreement, dated as of July 11, 2000 (the "Asset Purchase Agreement"),  with one
of the Company  Subsidiaries.  True and complete copies of the Carrier  Services
Agreement  and the Asset  Purchase  Agreement  have been  provided to the Buyer,
together with all amendments,  modifications and side letter agreements relating
thereto.

                  Article 3.  Representations and Warranties of the Buyer.
                              -------------------------------------------

                  The Buyer represents and warrants to the Seller as follows:

<PAGE>

                  3.1 Organization and Standing. The Buyer is a corporation duly
incorporated,  validly  existing,  and in good  standing  under  the laws of its
jurisdiction  of  incorporation  and  has  all  requisite  corporate  power  and
authority to own, lease and operate its properties and assets and to conduct its
business as it is now being conducted.

                  3.2 Binding Agreement.  The Buyer has all requisite  corporate
power and  authority to enter into this  Agreement,  to execute and deliver this
Agreement,  to  carry  out  its  obligations  hereunder  and to  consummate  the
transactions  contemplated  hereby. The execution and delivery of this Agreement
by the Buyer and the consummation by the Buyer of its obligations hereunder have
been duly and validly  authorized  by all necessary  corporate  and  stockholder
action on the part of the  Buyer.  This  Agreement  has been duly  executed  and
delivered on behalf of the Buyer and, assuming the due authorization,  execution
and delivery by the Seller, constitutes a legal, valid and binding obligation of
the Buyer enforceable in accordance with its terms.

                  3.3 Absence of Violations or Required Consents.  Except as set
forth in Section 3.3 of the Disclosure Schedule and, in the case of clauses (b),
(c)  and  (d),  except  for  such  violations,   breaches,  defaults,  consents,
approvals,    authorizations,    orders,   actions,   registrations,    filings,
declarations,  notifications  and  Encumbrances  that  would not  reasonably  be
expected  to  have a  material  adverse  effect  on  the  business,  results  of
operations or financial condition of the Buyer and its Subsidiaries,  taken as a
whole,  or  materially  impair or delay  the  consummation  of the  transactions
contemplated  hereby,  the execution,  delivery and  performance by the Buyer of
this  Agreement  does not and will not (a)  violate  or result in the  breach or
default of any  provision of the  certificate  or articles of  incorporation  or
by-laws of the Buyer,  (b) violate any Law or Governmental  Order  applicable to
the Buyer or any of its  properties  or  assets,  (c)  except  for the  Required
Consents, require any consent, approval, authorization or other order of, action
by,   registration  or  filing  with  or  declaration  or  notification  to  any
Governmental  Authority  or any other  Person or (d) result in any  violation or
breach of,  constitute  a default (or event which with the giving of notice,  or
lapse of time or both, would become a default) under, require any consent under,
or  give  to  others  any  rights  of  termination,   amendment,   acceleration,
suspension,  revocation  or  cancellation  of, or result in the  creation of any
Encumbrance on any of the Buyer's assets pursuant to, any note,  bond,  mortgage
or  indenture,  contract,  agreement,  lease,  sublease,  license or permit,  or
franchise to which the Buyer is a party or by which its assets are bound.

                  3.4  Litigation.  Except as  described  in Section  3.4 of the
Disclosure Schedule,  there are no Actions pending or, to the Buyer's knowledge,
any Action  threatened  to be brought by or before any  Governmental  Authority,
against the Buyer or any of its Affiliates that (i) seeks to question,  delay or
prevent the consummation of the transactions  contemplated  hereby or (ii) would
reasonably  be expected to affect  adversely the ability of the Buyer to fulfill
its obligations hereunder, including without limitation, the Buyer's obligations
under Article 1 hereof.

                  3.5 Commissions.  There is no broker or finder or other Person
who has any valid claim against the Sellers, any of their respective  Affiliates
or any of their respective assets for a commission,  finders' fee, brokerage fee
or other  similar fee in connection  with this  Agreement,  or the  transactions
contemplated hereby, by virtue of any actions taken by on or behalf of the Buyer
or its officers, employees or agents.

<PAGE>

                  3.6 Financing. The Buyer has delivered to the Sellers true and
complete  copies  of all  commitment  letters  from  commercial  banks  or other
financing  sources  setting forth their  respective  commitments  to provide all
necessary  financing in connection  with the  transactions  contemplated by this
Agreement  (the  "Financing  Commitments").  The Buyer has on hand  funds  that,
together with the proceeds of the Financing  Commitments,  are sufficient to pay
the  Purchase  Price  pursuant to this  Agreement  and  otherwise to satisfy its
obligations  hereunder.  The Buyer has been advised by the parties providing the
Financing   Commitments  that  none  of  such  parties  knows  of  any  fact  or
circumstance (including,  without limitation, the obligations of the Buyer under
this Agreement) that is reasonably  likely to result in any of the conditions to
the Financing  Commitments not being satisfied or the funds  contemplated by the
Financing  Commitments not being available for the transactions  contemplated by
this Agreement and the Buyer knows of no such fact or circumstance.

                  3.7 Acquisition of Shares for  Investment.  The Buyer has such
knowledge and experience in financial and business matters that it is capable of
evaluating  the merits and risks of its  purchase  of the  Shares.  The Buyer is
acquiring the Shares for investment and not with a view toward the  distribution
thereof.  The Buyer agrees that the Shares may not be sold or otherwise disposed
of without  registration  under the Securities  Act of 1933, as amended,  except
pursuant to an exemption from registration available under such Act.

                  Article 4.  Covenants and Agreements.
                              ------------------------

                  4.1  Conduct of the  Business Prior to Closing;  Access.  The
                       --------------------------------------------------
Sellers covenant as follows:

                  (a) Between the date  hereof and the Closing  Date,  except as
         contemplated by this  Agreement,  except as described in either Section
         2.8 or  Section  4.1 of the  Disclosure  Schedule,  or except  with the
         consent of the Buyer (which consent shall not be unreasonably  withheld
         or delayed in the case of clauses  (i),  (iii),  (vi),  (vii),  (viii),
         (ix),  (xi),  (xii) and (xiii) to the extent  clause  (xiii)  refers to
         clauses (i), (iii),  (vi),  (vii),  (viii),  (ix), (xi) or (xii)),  the
         Sellers  will cause the  Frontier  LEC  Business  to be operated in the
         ordinary course of business  consistent with past practice  (including,
         without   limitation,   with  respect  to  compliance   with  Laws  and
         performance under contracts) and will not permit:

                               (i)       any of the  assets of the Frontier  LEC
                  Business  to  be  subjected  to  any  Encumbrance,  other than
                  Permitted Exceptions, that will not be released at or prior to
                  the Closing Date;

                              (ii)  any  changes,   including  changes  to  con-
                  nection, disconnection and collection practices, to be made in
                  the  operations  of the  Frontier  LEC  Business  that are ma-
                  terial to the Frontier LEC Business as a whole;

<PAGE>

                             (iii) other  than,  in each case,  in the  ordinary
                  course of business  consistent with past practice,  any assets
                  of the Frontier LEC Business to be sold, transferred,  leased,
                  subleased,  licensed,  encumbered  or  otherwise  disposed  of
                  (including,  without  limitation,  sales,  transfers,  leases,
                  subleases,  licenses or  dispositions  of  material  assets to
                  Sellers or any of their  Subsidiaries other than the Companies
                  and  Company  Subsidiaries),  other than the sale of  obsolete
                  Equipment and transfers of cash;

                              (iv) (A) any increase,  or the announcement of any
                  increase,  in  the  wages,  salaries,  compensation,  bonuses,
                  incentives,  pension or other benefits  payable by any Company
                  or Company  Subsidiary to any of the officers or key employees
                  of the Frontier LEC Business to be granted, including, without
                  limitation,  any  increase or change  pursuant to any Employee
                  Benefit Plan, or (B) any benefits  under any Employee  Benefit
                  Plan with  respect to officers or key  employees  (or material
                  benefits with respect to any employees who are not officers or
                  key  employees) of the Frontier LEC Business to be established
                  or increased or to be promised to be increased, or any payment
                  or vesting  thereof to be  accelerated,  in either case except
                  (I) as required by Law,  (II) that involve  only  increases in
                  the  ordinary  course  of  business  consistent  with the past
                  practices  of the  Frontier  LEC Business or (III) as required
                  under any existing agreement or arrangement;

                               (v)  any   material   change  in  any  method  of
                  accounting  or  accounting  practice  or  policy  used  by the
                  Frontier   LEC  Business  to  be  made,   including,   without
                  limitation,  material  changes in  assumptions  underlying  or
                  methods  of  calculating   bad  debt,   contingency  or  other
                  reserves,  or notes or accounts receivable  write-offs,  or in
                  corporate allocation  methodology,  in each case other than as
                  required by Law or under GAAP;

                              (vi) any  commitments  for any  Company or Company
                  Subsidiary   to  make  capital   expenditures   in  excess  of
                  $20,000,000 in the aggregate that are not  contemplated in the
                  capital  improvements  budgets  for 2000 or 2001 set  forth in
                  Section 4.1 of the Disclosure Schedule;

                             (vii) any amendment of the certificate of incorpor-
                  ation or bylaws of any Company or Company Subsidiary;

                            (viii)  any  material  Action,  Indebtedness  or any
                  other  claims or rights  related to the  Companies  or Company
                  Subsidiaries to be compromised, settled or otherwise adjusted,
                  or any waiver or release  relating thereto to be granted other
                  than (unless such action would impose material restrictions or
                  obligations on the Frontier LEC Business after the Closing) in
                  the ordinary course of business;

<PAGE>
                              (ix) any new  agreement,  contract,  commitment or
                  arrangement,   or  any  amendments  or  modifications  to  any
                  existing such agreement,  contract, commitment or arrangement,
                  to be  entered  into  with any  Affiliate  of any  Company  or
                  Company Subsidiary (other than with another Company or Company
                  Subsidiary)  that is material to the  Frontier LEC Business or
                  that will continue in effect after the Closing Date and not be
                  terminable  by such Company or Company  Subsidiary on not more
                  than 60 days'  written  notice  without  payment of premium or
                  penalty;

                               (x) any change in the stock ownership of any Com-
                  pany or Company  Subsidiary  to be made or any interest in any
                  Company or Company Subsidiary to be granted or assigned;

                              (xi) any Indebtedness in excess of a net amount of
                  $10,000,000 to be created,  incurred, assumed or guaranteed by
                  any  Company or Company  Subsidiary  that cannot be prepaid or
                  terminated  without payment of premium or penalty,  except for
                  borrowings  under existing credit  agreements (or replacements
                  therefor on  substantially  the same terms) or the creation of
                  trade payables;

                             (xii) any new Material  Contract  (other than those
                  covered  by  clause  (ii),  (iii)  or  (ix)  above),   or  any
                  amendments  or  modifications  to any existing  such  Material
                  Contract,  to be  entered  into that will  continue  in effect
                  after the Closing Date and not be terminable by the Company or
                  Company  Subsidiary on not more than 60 days'  written  notice
                  without payment of premium or penalty;

                           (xiii)  any  agreement,  contract, commitment  or ar-
                  rangement to do any of the foregoing to be entered into.

                  (b)  Pending the Closing Date, the Sellers shall:

                           (1) Ensure that the Buyer and its representatives are
                  given reasonable access during normal business hours to all of
                  the  employees   (including   appropriate  experts  and  other
                  knowledgeable personnel), properties, books and records of the
                  Companies and Company  Subsidiaries and that the Buyer and its
                  representatives are furnished with such information concerning
                  the  Companies  and  Company  Subsidiaries  as the  Buyer  may
                  reasonably  require,  including such access and cooperation as
                  may be  necessary  to allow the Buyer and its  representatives
                  to:

                            (A)  identify  those   contracts  and  Permits  that
                  require third party consent to the  transactions  contemplated
                  hereby,  those that expire  prior to or soon after the Closing
                  and  those  that  may  require  special  documentation  at the
                  Closing;

                           (B) review  any  arrangements  with  respect to those
                  assets that will not be  transferred  as part of the  Frontier
                  LEC  Business  that Buyer may need to  replicate or replace at
                  the Closing;

<PAGE>

                           (C) determine  what changes Buyer may need to make to
                  various assets, including information technology assets, to be
                  owned by the Companies and the Company  Subsidiaries after the
                  Closing;

                           (D)  arrange  appropriate  insurance  coverage by the
                  Closing  with  respect to the  Companies  and the Company Sub-
                  sidiaries;

                           (E)   become   familiar   with   the   location   and
                  organization of the books and records,  including any original
                  cost documents and outside plant maps;

                           (F)   make    appropriate    arrangements   for   the
                  continuation of ongoing  maintenance,  construction  and plant
                  upgrade   activities   of  the   Companies   and  the  Company
                  Subsidiaries after the Closing;

                           (G) identify various regulatory  mandates  applicable
                  to the  Companies  and the  Company  Subsidiaries  and  review
                  compliance  therewith,   including  matters  relating  to  the
                  National Exchange Carrier Association (including the Universal
                  Service   Fund   and   the   Local   Switching   Support   and
                  Telecommunications Relay Services funds);

                           (H)  perform   Transaction  Screens  and/or  Phase  I
                  environmental  reviews  with  respect  to each  parcel of Real
                  Property at Buyer's expense; and

                           (I)  obtain  title  insurance  policies  and  surveys
                  covering  Real  Property  at Buyer's  expense  and provide the
                  title  company  with  such  instructions,  authorizations  and
                  affidavits  at no  cost to the  Sellers  or the  Companies  or
                  Company  Subsidiaries  as may be reasonably  necessary for the
                  title  company to issue  title  policies  (based upon the most
                  recent  assessed value or market value of such parcels) to the
                  Buyer,  dated  as of the  Closing  Date,  for all of the  Real
                  Property owned by the Companies or Company  Subsidiaries  with
                  so-called non-imputation endorsements;

                  provided  that this right of access  shall not be exercised in
                  any way which  would  unreasonably  interfere  with the normal
                  operations,  business  or  activities  of the  Sellers  or any
                  Company or Company Subsidiary;

                           (2)  Furnish  to the Buyer  within 30  Business  Days
                  after the end of each month  ending  between  the date of this
                  Agreement  and the Closing  Date a statement of income for the
                  Frontier LEC Business for the month just ended,  on a state by
                  state  basis to the extent  prepared,  and within 30  Business
                  Days after the end of each quarter  ending between the date of
                  this  Agreement  and the Closing Date a balance  sheet for the
                  Frontier LEC Business as of the end of such quarter;

                           (3)  Make available for  the Buyer all other  routine
                  management   and  statistical  reports  of  the  Frontier  LEC
                  Business;

<PAGE>

                           (4) From  time to time,  furnish  to the  Buyer  such
                  additional information (financial or otherwise) concerning the
                  Frontier  LEC  Business  as the Buyer may  reasonably  request
                  (which right to request  information shall not be exercised in
                  any way which  would  unreasonably  interfere  with the normal
                  operations,   business  or  activities  of  the  Sellers,  the
                  Companies or the Company Subsidiaries);

                           (5) Use, to the extent the Buyer requires  audited or
                  reviewed financial  statements of the Frontier LEC Business in
                  order  to  comply  with  the  reporting  requirements  of  the
                  Securities  and Exchange  Commission  (the "SEC") set forth in
                  Regulations  S-K and S-X,  reasonable  best  efforts to obtain
                  (or,  if Buyer  proposes to have its  auditors  audit any such
                  financial  statements,  to  permit  the  Buyer  to  obtain  by
                  providing audited  consolidating  balance sheets as of the end
                  of the fiscal years  hereinafter  described and  consolidating
                  income  statements and statements of cash flows and changes in
                  equity for such periods,  in each case,  for the Companies and
                  the Company  Subsidiaries  in the form required by Regulations
                  S-K and  S-X),  in either  case at the  Buyer's  expense,  the
                  required audited or reviewed combined financial  statements of
                  the  Frontier  LEC  Business  covering  the fiscal years ended
                  December 31, 1998 and 1999 (and each fiscal quarter  thereof),
                  and to the extent the Closing shall not have occurred prior to
                  the end thereof, the fiscal year ending December 31, 2000 (and
                  each  fiscal  quarter  thereof)  and  each  subsequent  fiscal
                  quarter, reasonably sufficient and timely enough to permit the
                  Buyer  reasonably  to  satisfy  such  obligations,  including,
                  without  limitation,  providing  reasonable  access  as stated
                  under  clause (1) above to any  auditors  engaged by the Buyer
                  for such  purpose and  delivering  one or more  representation
                  letters  from  the  Sellers  to any  such  auditors  as may be
                  reasonably  requested  by the Buyer to allow such  auditors to
                  complete  any such  audit or review and to issue an opinion on
                  such financial statements acceptable to the SEC;

                           (6) Consult with the Buyer with respect to taking, or
                  permitting  the  Companies  and   Subsidiaries  to  take,  any
                  material  action with  respect  with the Frontier LEC Business
                  other than in the ordinary course of business  consistent with
                  past business or other than as  contemplated by this Agreement
                  (including,  without  limitation,  the  Disclosure  Schedule),
                  including,  without  limitation,  consultation  regarding  the
                  negotiation  or  renegotiation  of any  collective  bargaining
                  agreements;  provided,  however,  that,  except as required by
                  Section  4.1(a),  neither  Seller nor any of the  Companies or
                  Company  Subsidiaries  shall be  obligated to accept or follow
                  any advice  proffered  by the Buyer  with  respect to any such
                  prospective  action and that such right of consultation  shall
                  not entitle the Buyer to participate in any such  negotiations
                  or renegotiations of collective bargaining agreements; and

<PAGE>

                           (7) Endeavor  with  reasonable  efforts to notify the
                  Buyer  within a  reasonable  period of time after the  Sellers
                  have obtained knowledge of the occurrence of any circumstance,
                  change in, or effect on the Companies or Company  Subsidiaries
                  that   Sellers   believe  had  or  would  in  the   reasonably
                  foreseeable future have a Material Adverse Effect.

                  4.2  Financing Commitments.  The Buyer covenants as follows:
                       ---------------------

                  (a) The Buyer shall use its reasonable  best efforts to obtain
         the  financing  provided  for by  the  Financing  Commitments.  Without
         limiting the generality of the  foregoing,  the Buyer shall not take or
         fail to take, and shall cause its  Subsidiaries  not to take or fail to
         take,  any action the  taking of which,  or which the  failure to take,
         would  reasonably  likely  result  in  any  of  the  conditions  to the
         Financing  Commitments not being satisfied or the funds contemplated by
         the Financing  Commitments  not being  available  for the  transactions
         contemplated  by this  Agreement,  or that would  otherwise  materially
         impair  or delay  the  consummation  of the  transactions  contemplated
         hereby. In the event that such financing or any portion thereof becomes
         unavailable,  the Buyer shall use its reasonable best efforts  promptly
         to obtain  commitment  letters  for  alternative  financing  from other
         sources  sufficient  to  enable  the  Buyer to pay the  Purchase  Price
         pursuant to this  Agreement  and  otherwise to satisfy its  obligations
         hereunder. Any such alternative financing shall be deemed to constitute
         (or to  constitute  a  portion  of,  as the  case  may  be)  "Financing
         Commitments" for purposes of this Agreement. The Buyer shall furnish to
         the  Sellers  promptly  true and  complete  copies  of any  alternative
         commitment  letters from commercial  banks or other financing  sources,
         all definitive loan  agreements  entered into pursuant to the Financing
         Commitments  and all other  correspondence  or  notices  from any party
         providing the Financing Commitments relating to the financing.

                  (b) The Buyer shall give  prompt  notice to the Sellers of the
         occurrence, or non-occurrence,  of any fact or circumstance,  or of any
         notice from any party  providing  the  Financing  Commitments,  that is
         reasonably  likely to result in any of the  conditions to the Financing
         Commitments  not  being  satisfied  or the  funds  contemplated  by the
         Financing   Commitments  not  being  available  for  the   transactions
         contemplated by this Agreement.

                  4.3 Post-Closing Covenants and Agreements.  (a) From and after
the Closing Date, the Sellers shall,  at all  reasonable  times,  make available
without cost, for inspection and/or copying for reasonable  business purposes by
the  Buyer  or  any  of  the  Companies  or  Company   Subsidiaries,   or  their
representatives,  any books and records of the Frontier LEC Business, whether in
electronic or physical form, that are not in the possession of the Companies and
Company  Subsidiaries  after the  Closing.  Any such books and records  shall be
preserved  by the  Sellers  for so long as the Buyer or any  Company  or Company
Subsidiary  shall be obligated by Law to maintain the same. After the period set
forth above,  upon not less than 30 days written notice to the Buyer  specifying
in  reasonable  detail the books and records  that  neither  Seller  proposes to
destroy, such Seller may destroy the books and records in its possession unless,
before  expiration of such notice  period,  the Buyer or any of the Companies or
Company Subsidiaries objects in writing to the destruction of any or all of such
books and  records,  in which case such books and records  shall be delivered to
the objecting Person at the expense of the objecting Person.

<PAGE>

                  (b) From and after the  Closing  Date,  the Buyer  shall,  and
shall cause the Companies and Company Subsidiaries to:

                  (i) At all reasonable  times, make available without cost, for
         inspection  and/or  copying  for  reasonable  business  purposes by the
         Sellers  or  their  representatives,  the  books  and  records  of  the
         Companies and Company  Subsidiaries,  whether in electronic or physical
         form.  Such books and records  shall be  preserved  by the Buyer or the
         Companies  and Company  Subsidiaries  until the later of the closing by
         tax audit of, or the expiration of the relevant  statute of limitations
         (including any waiver thereof) with respect to, all open tax periods of
         the Sellers prior to and  including the Closing Date.  After the period
         set  forth  above,  upon not less  than 30 days  written  notice to the
         Sellers  specifying in reasonable detail the books and records that the
         Buyer or any Company or Company  Subsidiary  proposes  to destroy,  the
         Buyer or such Company or Company  Subsidiary  may destroy the books and
         records in their possession  unless,  before  expiration of such notice
         period, a Seller objects in writing to the destruction of any or all of
         such books and records,  in which case such books and records  shall be
         delivered  to the  objecting  Person at the  expense  of the  objecting
         Person.  Notwithstanding the foregoing, the Buyer and the Companies and
         Company  Subsidiaries shall continue to preserve and, at all reasonable
         times after the Closing  Date,  to make  available  without  cost,  for
         inspection  and/or  copying by any  Person  that was a trustee or other
         fiduciary under the Employee Benefit Plans identified in Section 4.3 of
         the Disclosure Schedule, the books and records of such Employee Benefit
         Plan  and  the  books  and  records  of  the   Companies   and  Company
         Subsidiaries relating thereto.

                  (ii) (x)  Exculpate,  indemnify and hold harmless all past and
         present employees,  officers, agents and directors of the Companies and
         Company  Subsidiaries to the full extent  permitted by law for any acts
         or omissions  relating to, or arising out of, the Frontier LEC Business
         occurring on or prior to the Closing  Date;  (y) cause to be maintained
         in effect through September 28, 2005 the current  provisions  regarding
         elimination of liability of directors and  indemnification  of officers
         and directors contained in the certificate of incorporation and by-laws
         or other  organizational  documents  of the  Companies  and the Company
         Subsidiaries;  and (z)  not  take  any  action  that  would  cause  any
         directors',   officers',   fiduciaries'   or  similar   insurance   and
         indemnification policies that may be maintained by the Sellers for past
         and  present  directors  and  officers  of the  Companies  and  Company
         Subsidiaries  and  trustees of the  Employee  Benefit  Plans  providing
         coverage  for acts and  omissions  and  other  events  relating  to, or
         arising out of, the Frontier LEC Business  occurring at or prior to the
         Closing  Date,  including,   without  limitation,  in  respect  of  the
         transactions  contemplated  by this  Agreement,  not to  remain in full
         force and effect.

                  (iii) Except for  disputes in good faith,  honor and comply in
         all material  respects with the terms and  conditions  contained in all
         contracts  to  which  any of  the  Companies  or  any  of  the  Company
         Subsidiaries is a party or by which it is bound.

<PAGE>

                  (c) Effective as of the Closing Date, the Sellers will have no
obligation  to  provide  insurance  coverage  for  the  Companies,  the  Company
Subsidiaries  and the Frontier LEC  Business for  occurrences  after the Closing
Date and the Buyer will become solely responsible for all insurance coverage and
related  risk of loss based on events  occurring  on and after the Closing  Date
with respect to the  Companies,  the Company  Subsidiaries  and the Frontier LEC
Business.  To the  extent  that (i) any  insurance  policies  controlled  by the
Sellers (the "Sellers' Insurance Policies"),  cover any loss, liability,  claim,
damage or expense  relating to the Companies,  the Company  Subsidiaries  or the
Frontier LEC Business (the "Subject Liabilities") and relating to or arising out
of  occurrences  prior to the  Closing  Date,  and (ii) the  Sellers'  Insurance
Policies  continue after the Closing to permit claims to be made thereunder with
respect to the Subject  Liabilities  relating  to or arising out of  occurrences
prior to the Closing Date ("Subject  Claims"),  the Sellers shall cooperate with
the Buyer in submitting  Subject Claims on behalf of the Buyer or any Company or
Company  Subsidiary  under the Sellers'  Insurance  Policies and the Buyer shall
reimburse, indemnify and hold the Sellers harmless from all out-of-pocket, costs
and expenses  (including,  without limitation,  all retroactive or retrospective
premiums  related to the  Subject  Claims  (but not any other  present or future
premiums),  deductibles,  out-of-pocket legal and administrative  costs, net Tax
costs to the Sellers  resulting from the receipt and payment to the Buyer of any
insurance  proceeds  relating to any Subject Claim and attorneys' fees under the
Sellers' Insurance Policies) of any nature actually incurred by the Sellers as a
result of Subject Claims made under the Sellers' Insurance Policies. The Sellers
shall  exercise  reasonable  best efforts  (which  efforts shall not require the
Sellers to incur any out-of-pocket costs or expenses not reimbursed by the Buyer
or any other adverse  consequences) to cause the Sellers'  Insurance Policies to
be modified to allow for the assignment to the Buyer of all benefits, rights and
obligations thereunder in respect of any Subject Liabilities.  To the extent any
such policies are not so assigned,  upon receipt by the Sellers of any insurance
proceeds  relating  to any  Subject  Claims  made under the  Sellers'  Insurance
Policies,  the Sellers will promptly pay such  insurance  proceeds to the Buyer,
net of any unreimbursed costs and expenses described above.

                  (d)   From and after the Closing Date,

                  (i) The Buyer  will not,  for a period of two years  following
         the Closing Date, without the prior written consent of Global, directly
         or  indirectly,  solicit  to hire or hire (or cause or seek to cause to
         leave the employ of Global or any Subsidiary of Global) any employee of
         Global or any  Subsidiary of Global with whom the Buyer has had contact
         or who (or whose  performance)  became known to the Buyer in connection
         with this Agreement;  provided,  however,  that the foregoing provision
         will not prevent the Buyer from hiring any such Person who contacts the
         Buyer on his or her own  initiative  without  any  direct  or  indirect
         solicitation  by or  encouragement  from the Buyer or who contacted the
         Buyer in response to a general advertisement; and.

<PAGE>

                  (ii) The Sellers will not, for the period from the date hereof
         through the date that is two years following the Closing Date,  without
         the prior written consent of the Buyer, directly or indirectly, solicit
         to hire or hire (or cause or seek to cause to leave  the  employ of the
         Companies or Company Subsidiaries on the Buyer or any Subsidiary of the
         Buyer) any  employee of the  Companies or Company  Subsidiaries  or the
         Buyer or any Subsidiary of the Buyer with whom (other than with respect
         to the  Companies  and the Company  Subsidiaries)  the Sellers have had
         contact or who (or whose  performance)  became  known to the Sellers in
         connection with this Agreement;  provided,  however, that the foregoing
         provision  will not prevent the Sellers from hiring any such Person who
         contacts the Sellers on his or her own initiative without any direct or
         indirect  solicitation  by or  encouragement  from the  Sellers  or who
         contacted the Sellers in response to a general advertisement.

                  4.4  Cooperation.  Following the execution of this Agreement,
                       -----------
the Buyer and the Sellers agree as follows:

                  (a)  Subject to the terms and  conditions  of this  Agreement,
         each party will use its reasonable best efforts to take, or cause to be
         taken,  all  actions  and  to do,  or  cause  to be  done,  all  things
         necessary,  proper or advisable,  including  under  applicable Laws and
         regulations,   to  consummate  the  Sale  and  the  other  transactions
         contemplated  by this Agreement as soon as  practicable  after the date
         hereof.  In furtherance  and not in limitation of the  foregoing,  each
         party hereto agrees (i) to make an appropriate filing of a Notification
         and  Report  Form   pursuant  to  the  HSR  Act  with  respect  to  the
         transactions  contemplated  hereby as promptly as practicable after the
         date  hereof and to supply as promptly as  practicable  any  additional
         information and documentary  material that may be requested pursuant to
         the HSR Act and to take  all  other  actions  necessary  to  cause  the
         expiration or termination of the applicable  waiting  periods under the
         HSR Act as soon as practicable, (ii) to file all necessary applications
         for  Required   Consents  at  the  FCC,  PUCs  and  local   franchising
         authorities  with respect to the  transactions  contemplated  hereby as
         promptly as  practical  after the date hereof and to supply as promptly
         as practicable any additional information and documentary material that
         may be requested by the FCC, PUCs and local franchising authorities and
         to take all other actions  necessary to cause the Required  Consents to
         be  obtained  as soon as  practicable  and  (iii) to  obtain  all other
         required  consents  from third  parties.  The parties agree to file all
         necessary applications for Required Consents with state PUCs jointly to
         the  extent  permitted  under  Applicable  Law,  and to  share  counsel
         whenever feasible and where it does not pose a conflict of interest.

                  (b) The Sellers and the Buyer shall,  in  connection  with the
         efforts referenced in Section 4.5(a) to obtain all requisite  approvals
         and authorizations for the transactions  contemplated by this Agreement
         under the HSR Act or any other  Regulatory Law, use its reasonable best
         efforts to (i)  cooperate in all respects with each other in connection
         with any filing or submission and in connection with any  investigation
         or other  inquiry,  including  any  proceeding  initiated  by a private
         party,  (ii)  promptly  inform  the  other  party of any  communication
         received by such party from, or given by such party to, the FCC,  PUCs,
         the Antitrust Division of the Department of Justice (the "DOJ") or any

<PAGE>

other Governmental Entity and of any material communication received or given in
connection with any proceeding by a private party, in each case regarding any of
the transactions contemplated hereby, and (iii) permit the other party to review
any  communication  (other than filings pursuant to the HSR Act) given by it to,
and consult with each other in advance of any meeting or  conference  with,  the
FCC,  PUCs, the DOJ or any such other  Governmental  Authority or, in connection
with any proceeding by a private party, with any other Person, and to the extent
permitted  by the  FCC,  PUCs,  the DOJ or such  other  applicable  Governmental
Authority or other Person,  give the other party the  opportunity  to attend and
participate  in such  meetings  and  conferences.  Neither  party shall take any
action in connection  with  obtaining  any Required  Consent that is intended to
create,  allocate,  or shift to the other party any  liability  arising from the
obtaining of such Required Consent; provided that this provision is not intended
to limit the rights or obligations of either party under this Section 4.4 or any
other Section of this  Agreement or the right of any party to otherwise  seek to
reduce  or  eliminate  any  such  liability  on  itself.  For  purposes  of this
Agreement,  "Regulatory Law" means (i) the Sherman Act, as amended,  the Clayton
Act, as amended,  the HSR Act, the Federal Trade Commission Act, as amended, the
Communications Act, and all other federal,  state and foreign, if any, Laws that
are designed or intended to prohibit,  restrict or regulate  actions  having the
purpose  or effect of  monopolization  or  restraint  of trade or  lessening  of
competition, whether in the communications industry or otherwise, through merger
or  acquisition  and (ii) all  federal,  state and  foreign,  if any,  Laws with
respect to the  transfer,  assignment,  modification  or  granting  of  Permits,
whether  in the  public  utility  or  communications  industries  or  otherwise,
including, without limitation, certificates of public convenience and necessity,
public interests certificates and radio licenses.

                  (c) In  furtherance  and not in limitation of the covenants of
         the  parties   contained  in  Sections   4.4(a)  and  4.4(b),   if  any
         administrative   or  judicial  action  or  proceeding,   including  any
         proceeding  by a private  party,  is  instituted  (or  threatened to be
         instituted) challenging any transaction  contemplated by this Agreement
         as  violative  of any  Regulatory  Law,  the  Sellers  and Buyer  shall
         cooperate  in all  respects  with each  other and use their  respective
         reasonable  best  efforts  to contest  and  resist  any such  action or
         proceeding  and to have vacated,  lifted,  reversed or  overturned  any
         decree,  judgment,   injunction  or  other  order,  whether  temporary,
         preliminary  or  permanent,  that  is in  effect  and  that  prohibits,
         prevents or restricts consummation of the transactions  contemplated by
         this Agreement. Notwithstanding the foregoing or any other provision of
         this Agreement, nothing in this Section 4.4 shall limit a party's right
         to terminate  this  Agreement  pursuant to Section 11.1 so long as such
         party  has up to  then  complied  in all  material  respects  with  its
         obligations under this Section 4.4.

                  (d)  If  any  objections  are  asserted  with  respect  to the
         transactions  contemplated  hereby under any  Regulatory  Law or if any
         suit is instituted by any  Governmental  Authority or any private party
         challenging any of the transactions contemplated hereby as violative of
         any  Regulatory  Law,  each of the  Sellers and the Buyer shall use its
         reasonable  best efforts to resolve any such objections or challenge as
         such  Governmental   Authority  or  private  party  may  have  to  such
         transactions under such Regulatory Law so as to permit  consummation of
         the transactions contemplated by this Agreement.

<PAGE>

                  (e) As used in this Section  4.4,  "reasonable  best  efforts"
         shall not require (i) the Buyer or any of its  Affiliates  to divest or
         hold  separate  or  otherwise  take or commit to take any  action  that
         limits  their  freedom of action with  respect to, or their  ability to
         retain,  any of their assets or businesses or any other action, in each
         case that  would be  reasonably  expected  to have a  Material  Adverse
         Effect or Buyer Material  Adverse Effect,  or (ii) either Seller or any
         of their  Affiliates  to divest or hold  separate or otherwise  take or
         commit to take any action  that  limits  their  freedom of action  with
         respect  to,  or  their  ability  to  retain,  any of their  assets  or
         businesses or any other  action,  in each case that would be reasonably
         expected to have a Material  Adverse Effect or an adverse effect (other
         than an immaterial  effect) on the  business,  results of operations or
         financial  condition of the Sellers or their  Subsidiaries  (other than
         the Companies and the Company Subsidiaries).

                  4.5  Confidentiality.
                       ---------------

                  (a)   Prior   to  the   Closing   Date.   The   terms  of  the
Confidentiality  Agreement  are herewith  incorporated  by  reference  and shall
continue  in full force and effect  until the Closing  Date and shall  remain in
effect in accordance with its terms even if this Agreement is terminated.

                  (b)  Financial and Tax  Information.  (i) Before and after the
Closing Date, each of the parties shall maintain the  confidentiality of the tax
information  of the Frontier LEC Business under terms similar to those set forth
in the Confidentiality Agreement with respect to "Evaluation Material" as though
such terms applied to the parties and continued after the Closing Date.

                  (ii) After the Closing Date,  the Sellers  shall  maintain the
confidentiality of the financial  information of the Frontier LEC Business prior
to the  Closing  under terms  similar to those set forth in the  Confidentiality
Agreement with respect to "Evaluation  Material" as though such terms applied to
the Sellers and continued after the Closing Date.

                  4.6 Public Announcements.  Except as otherwise required by law
or the rules of any stock exchange or automated  quotation  system,  the parties
shall not issue any report,  statement or press  release or  otherwise  make any
public  announcement  with respect to this Agreement and the other  transactions
contemplated  hereby without prior  consultation  with and approval of the other
parties hereto (which approval shall not be unreasonably withheld).

                  4.7  No   Solicitation.   Other  than  as  specified  in  this
Agreement,  the Sellers shall not, and shall use their best efforts to cause its
officers,  directors,  representatives,  affiliates  or  associates  not to, (a)
initiate  contact  with,  solicit,  encourage  or  respond to any  inquiries  or
proposals  by,  or (b) enter  into any  discussions  or  negotiations  with,  or
disclose,  directly or indirectly,  any information concerning the Companies and
Company  Subsidiaries  to, or afford  any  access to the  properties,  books and
records of the Companies and Company  Subsidiaries  to, any Person in connection
with any possible proposal for the acquisition (directly or indirectly,  whether
by purchase, merger,  consolidation or otherwise) of all or substantially all of
the assets, business or capital stock of the Companies and Company Subsidiaries.
The Seller agrees to terminate immediately any such discussions or negotiations.

<PAGE>

                  4.8 No  Additional  Representations.  THE  BUYER  ACKNOWLEDGES
THAT, EXCEPT THOSE  REPRESENTATIONS  AND WARRANTIES  EXPRESSLY SET FORTH IN THIS
AGREEMENT,  NEITHER THE SELLER NOR ANY OTHER PERSON HAS MADE ANY  REPRESENTATION
OR WARRANTY,  EXPRESSED OR IMPLIED,  REGARDING  THE FRONTIER LEC BUSINESS OR THE
ACCURACY OR COMPLETENESS  OF ANY INFORMATION  FURNISHED OR MADE AVAILABLE TO THE
BUYER  AND ITS  REPRESENTATIVES,  INCLUDING,  WITHOUT  LIMITATION,  ANY  IMPLIED
WARRANTY OR REPRESENTATION AS TO CONDITION, MERCHANTABILITY OR SUITABILITY AS TO
ANY  PROPERTIES  OR ASSETS  OF THE  FRONTIER  LEC  BUSINESS.  THE BUYER  FURTHER
ACKNOWLEDGES THAT ANY COST ESTIMATES, PROJECTIONS OR OTHER PREDICTIONS CONTAINED
OR REFERRED TO IN THE OFFERING  MATERIALS  THAT HAVE BEEN  PROVIDED TO THE BUYER
ARE NOT AND  SHALL  NOT BE DEEMED TO BE  REPRESENTATIONS  OR  WARRANTIES  OF THE
SELLERS.

                  4.9 Use of Global Crossing and Frontier  Names.  (a) After the
Closing Date,  neither the Buyer nor any of its Affiliates  (including,  without
limitation,  the Companies and Company Subsidiaries) shall use "Global Crossing"
or "Global" or any name or term confusingly  similar to or "Global  Crossing" or
"Global"  in any  corporate  name or in  connection  with the  operation  of any
business.  Notwithstanding the foregoing, the Companies and Company Subsidiaries
shall  have a period  of time  (which  in no event  is,  except  as set forth in
Schedule 4.9(a), to exceed 120 days following the Closing Date) in which to, and
the Buyer shall cause the Companies and Company Subsidiaries to, remove or cover
the  names  "Global  Crossing"  or  "Global"  and  any  trademarks,  tradenames,
servicemarks,  trade  dress or logos  relating  to such  names  from all  signs,
billboards,  advertising  materials,  telephone  listings,  labels,  stationery,
office forms and mastheads;  provided,  however, that during such period of time
such names, trademarks, tradenames, servicemarks, trade dress and logos shall be
used (i) only to the extent necessary to avoid financial  hardship and (ii) only
to the  extent  and in the  manner  that  such  names,  trademarks,  tradenames,
servicemarks,  trade  dress and logos  were used by the  Companies  and  Company
Subsidiaries as of immediately prior to the Closing.

<PAGE>

                  (b) After the Closing Date, except as set forth in Section 4.9
of the Disclosure  Schedule,  neither of the Sellers nor any of their Affiliates
shall use  "Frontier" or any name or term  confusingly  similar to "Frontier" in
any  corporate  name  or in  connection  with  the  operation  of any  business.
Notwithstanding  the foregoing,  the Sellers and their  Affiliates  shall have a
period of time (which in no event is, except as set forth in Schedule 4.9(b), to
exceed 120 days  following  the Closing Date) in which to, and the Sellers shall
cause  their  Affiliates  to,  remove  or  cover  the  name  "Frontier"  and any
trademarks,  trade names,  service marks,  trade dress or logos relating to such
names from all signs,  billboards,  advertising  materials,  telephone listings,
labels, stationery,  office forms and mastheads;  provided, however, that during
such period of time such names,  trademarks,  trade names,  service marks, trade
dress  and  logos  shall  be used  (i)  only to the  extent  necessary  to avoid
financial  hardship  and (ii) only to the  extent  and in the  manner  that such
names,  trademarks,  trade names, service marks, trade dress and logos were used
by the Sellers and their Affiliates as of immediately prior to the Closing. This
Section  4.9(b)  shall  not be  construed  to  prohibit  the  Sellers  and their
Affiliates  from using the name  "Frontier" in connection with the filing of any
Tax Returns  required by any Tax authority or jurisdiction  for periods prior to
the Closing or the filing of any other  documents  required by any  Governmental
Authority.

                  4.10 Long Distance Agreements. (a) The closing under the Asset
Purchase  Agreement  shall occur in accordance  with the terms  thereof  without
creating  any  liability  or  obligation  of any  Company or Company  Subsidiary
thereunder  extending  beyond the Closing Date. The Sellers shall use reasonable
best efforts to obtain, as soon as practicable,  all required consents necessary
for consummation of the Asset Purchase Agreement.

                  (b) The  Carrier Service Agreement shall  be amended prior  to
         the Closing as follows:

                  (i) The initial term of the Carrier  Service  Agreement  shall
         continue  in effect for a period of three years  following  the Closing
         Date. The Buyer may thereafter at its option renew the Carrier  Service
         Agreement for up to four consecutive two-year periods. Renewal shall be
         automatic unless the Carrier Service Agreement is canceled by the Buyer
         pursuant  to  Section  2.3  of  the  Carrier  Service  Agreement  or is
         otherwise canceled in accordance with the termination provisions of the
         Carrier Service Agreement.  Sections 2.2 and 2.3 of the Carrier Service
         Agreement  shall be revised as appropriate to eliminate  Global's right
         to terminate  the Carrier  Service  Agreement  except for breach by the
         Buyer.

                  (ii)  Section 3.9 of the Carrier  Service  Agreement  shall be
         revised to change "then current standard wholesale pricing programs" to
         "the best prices given to another carrier with the same or lower volume
         or  term  commitments,  and  the  same or  substantially  similar  cost
         characteristics with respect to traffic origination and termination".

                  (iii) The Buyer may  include at its option any of its  present
         and future  Subsidiaries as parties to the Carrier  Service  Agreement,
         subject to the pricing  limitation  specified  immediately  below. Such
         election  shall  be  binding  for  each  included  Subsidiary  for  the
         remaining term of the Carrier Service Agreement.

                  (iv) Pursuant to the Exhibits to the Carrier Service Agreement
         one of  Global's  Subsidiaries  has the  right  under  certain  pricing
         arrangements  to surcharge an additional  four cents per minute if more
         than a specified  percentage  of traffic  originates  or  terminates in
         non-RBOC/GTE  regions.  This four cent  surcharge  shall not be applied
         under the  Carrier  Service  Agreement  with  respect to long  distance
         end-user  customers  located  in  the  franchise   territories  of  the
         incumbent  local  exchange  carrier  operations  of  the  Frontier  LEC
         Business. This subparagraph does not apply to the Buyer's other present
         or future Subsidiaries.

                  (v)     Sections 3.3 and 3.11 of the Carrier Service Agreement
         shall be deleted.

<PAGE>

                  4.11 Transition Services. (a) Following the Closing and for so
long as a Company or Company  Subsidiary  remains a Subsidiary of the Buyer (but
in no event for a period  longer  than two years  from the  Closing  Date),  the
Sellers  agree to provide,  or to cause  their  Affiliates  to  provide,  to the
Companies  and Company  Subsidiaries,  and the Buyer  shall pay for,  all of the
administrative and support services provided to the Frontier LEC Business by the
Sellers as of the date hereof which are on Schedule  4.11 hereto,  at a relative
level of service  consistent  with that  provided by the Sellers to the Frontier
LEC Business during the 12 months preceding the date hereof, unless on or before
the date that is four months  after the date hereof  (which date may up to twice
be extended for an  additional  30 days at the Buyer's sole  option),  the Buyer
shall  notify the Sellers of any or all of such  services  that should not be so
provided following the Closing. The services initially so provided following the
Closing shall continue to be provided as set forth in the previous sentence, and
the Buyer shall continue to pay therefor,  unless the Buyer shall have given the
Sellers  at least  three  months  advance  written  notice of any or all of such
services the provision of which shall be terminated.

                  (b)  Following  the  Closing and for so long as the Company or
Company Subsidiary currently providing such services remains a Subsidiary of the
Buyer  (but in no event  for a period  longer  than two years  from the  Closing
Date),  the Buyer agrees to provide,  or to cause its Affiliates to provide,  to
the Sellers and their  Subsidiaries,  and the Sellers  shall pay for, all of the
administrative and support services provided by the Frontier LEC Business to the
Sellers  and  their   Subsidiaries   (other  than  the   Companies  and  Company
Subsidiaries)  as of the Closing Date which are on Schedule  4.11  hereto,  at a
relative level of service consistent with that provided to the Sellers and their
Subsidiaries  by the Frontier LEC Business  during the 12 months  preceding  the
date  hereof,  unless on or before the date that is four  months  after the date
hereof  (which date may up to twice be extended for an additional 30 days at the
Sellers' sole option),  the Sellers shall notify the Buyer of any or all of such
services  that should not be so provided  following  the  Closing.  The services
initially so provided following the Closing shall continue to be provided as set
forth in the previous sentence,  and the Sellers shall continue to pay therefor,
unless the  Sellers  shall have given the Buyer at least  three  months  advance
written  notice of any or all of such  services the  provision of which shall be
terminated.

                  (c) Such  services  will be provided for a charge equal to the
then current cost of such  services  (without  mark-up) to the Sellers and their
Affiliates or to the Buyer and its  Affiliates,  as the case may be,  determined
and  allocated  to the  Buyer or the  Sellers,  as the case may be,  in a manner
consistent with the  determination  and allocation of such costs to the Frontier
LEC  Business  reflected  in the  financial  data and  information  described in
clauses  (ii) and (iii) of Section  2.6(a).  The Buyer and the Sellers  agree to
pay,  promptly in accordance  with their standard  payment  practices (but in no
event later than 45 days after  presentation),  any bills and  invoices  that it
receives  from the other party for services  provided  under this Section  4.11,
subject  to  receiving,   if  requested,   any  reasonably  appropriate  support
documentation  for such bills and  invoices.  Such charges shall be billed as of
the end of each calendar  month.  Each party shall provide the other at least 60
days' notice of any material  increase in the cost of such services prior to the
date such increase will take effect.

<PAGE>

                  (d) The  parties  hereto  agree to  negotiate  in good faith a
transition  services  agreement  with  respect to services to be provided by the
Sellers to the  Frontier  LEC  Business,  or by the Frontier LEC Business to the
Sellers, following the Closing consistent with the terms of this Section 4.11.

                  (e)  Section  2.5  (by   reference  to  Section  2.7)  of  the
Disclosure  Schedule  identifies  the proposed  "Future  Allocation"  of certain
shared or  displaced  assets or services  relating to the  Frontier LEC Business
between  the  Companies  and  Company  Subsidiaries,  on the one  hand,  and the
Sellers,  on the other (the "Scheduled  Allocation").  Each of the Buyer and the
Sellers agrees to negotiate in good faith such proposed allocations prior to the
Closing with a view to creating a final allocation which (A) to the extent there
exists  an  overwhelmingly  dominant  user  or  beneficiary  of such  assets  or
services,  allocates such asset or service to such user or beneficiary,  and (B)
otherwise equitably allocates such assets and services between the Companies and
Company  Subsidiaries and the Sellers taking into account the criticality of the
function to each,  the cost and burden on the party to whom the asset or service
is not  allocated  to  replace  such  function  in light of such  party's  other
resources,  and the related disruption,  and the overall burdens and benefits of
the  overall  allocation.  If the Buyer and the Sellers are unable to agree on a
negotiated  final  allocation,  the  Scheduled  Allocation  shall be  deemed  to
constitute  the final  allocation and the party to whom such asset or service is
allocated  (which shall be the Sellers if no  allocation  is provided for in the
Scheduled  Allocation)  will  provide  the other  party  access to such asset or
service as a Transition Service under the provisions of this Section 4.11 on the
cost basis described in Section 4.11(c).

                   (f) Consistent  with its notice  requirements in this Section
4.11,  the Buyer at its sole  discretion may choose to migrate any or all of the
billing,  ordering,  provisioning  and other  operations  support  systems being
provided under the transition  services  arrangement in accordance with Schedule
4.11 to the Buyer's own  platforms.  The Sellers  will use its  reasonable  best
efforts  to  comply  with  reasonable  data  requests  (including  requests  for
electronic  source data) for information  that is necessary to map,  convert and
integrate such systems into the Buyer's or its vendor's  platforms.  The Sellers
also  agree  to use its  reasonable  best  efforts  to  provide  the  applicable
information  required to migrate all other transition services to the Buyer's or
its  vendor's  systems.  The Buyer  agrees  that its  requests  may not impose a
material  burden  on  the  operation  of  the  Sellers  and  their  Subsidiaries
(including, prior to the Closing, the Companies and Company Subsidiaries).

<PAGE>

                  4.12  Sublease of Premises  in GCNA  Building.  At the Buyer's
request,  GCNA and the Buyer agree to  exercise  reasonable  good faith  efforts
after the  execution  of this  Agreement  to  negotiate  and finalize a Sublease
Agreement  pursuant  to which GCNA will agree to sublease to Buyer or one of its
Subsidiaries  for a period of not less than two years following the Closing Date
(with an  option  to extend  the term  thereof  to the end of the term of GCNA's
current lease of such premises),  a portion of the building located at 180 South
Clinton  Avenue,  Rochester,  New York not to exceed the  number of square  feet
currently allocated to the Frontier LEC Business and for a rent based on the pro
rata cost allocable to the square feet so subleased, in each case, determined on
a basis  consistent  with the basis used in  preparing  the  financial  data and
information described in clauses (ii) and (iii) of Section 2.6(a) and containing
such other terms and  conditions as are  customary in such a sublease  agreement
(including  an  indemnity  for failure of the Buyer to perform  its  obligations
under the  sublease);  provided  that, if the consent of the landlord  under the
lease is not obtained  within  three  months of the date hereof,  then the Buyer
shall have no  obligation  under this  Section so long as the Buyer has complied
with its  obligation  to exercise  reasonable  good faith efforts to obtain such
consent in accordance with this Section 4.12.

                  4.13  Intercompany  Accounts  and  Guaranties.  (a)  As of the
calendar  day  immediately  prior  to  the  Closing  Date,  except  for  amounts
identified as "Affiliate  Advance  Receivables"  on the books and records of the
Companies  and Company  Subsidiaries  and any other  accounts that may not be so
canceled under  applicable  Law, all amounts (x) owed to any of the Companies or
Company  Subsidiaries  by the  Sellers  and  their  Affiliates  (other  than the
Companies  and the  Company  Subsidiaries)  or (y) owed to the Sellers and their
Affiliates (other than the Companies and the Company Subsidiaries) by any of the
Companies or Company Subsidiaries shall be canceled and extinguished.

                  (b) With respect to all intercompany accounts not so canceled,
upon the Closing the Buyer shall assume responsibility for and shall release the
Sellers  and  their  Affiliates  (other  than  the  Companies  and  the  Company
Subsidiaries)  from,  and  indemnify  and hold  harmless  the  Sellers and their
Affiliates  (other than the  Companies  and the Company  Subsidiaries)  from and
against,  all liability for, and (to the extent  permitted under applicable Law)
shall  cause the  relevant  Companies  and  Company  Subsidiaries  to enter into
novation  agreements (in form and substance  satisfactory to the parties hereto)
with  respect  to,  all  amounts  owed  to  any  of  the  Companies  or  Company
Subsidiaries by the Sellers and their  Affiliates  (other than the Companies and
the Company  Subsidiaries);  provided that no such action shall be taken if such
action  would be in  violation  of any Law or would,  without the consent of the
Sellers,  otherwise result in an adverse effect on either Seller,  in which case
the  parties  hereto  shall   negotiate  in  good  faith  suitable   alternative
arrangements  that would not be in violation of any Law or result in any adverse
effects.

                  (c) The Buyer shall use its best efforts to obtain the release
prior to the Closing of the Sellers and any  Affiliate of the Sellers other than
the Companies and the Company  Subsidiaries  from any and all guarantees of such
Persons of any  indebtedness  or other  obligations of the Frontier LEC Business
and shall  indemnify and hold harmless such Persons against any payment that any
of them must make  under any of such  guarantees  and its  reasonable  costs and
expenses thereunder  including,  without limitation,  reasonable attorney's fees
and costs.

<PAGE>

                  4.14 Capital Expenditures.  If the aggregate amount of capital
expenditures incurred for assets of the Frontier LEC Business from and including
January 1, 2000 through and including the Closing Date shall not equal or exceed
(i) if the Closing were to occur during the year 2000, a pro rata portion (based
upon the  number of  elapsed  days in such  year  prior to the  Closing)  of the
$212,287,000  aggregate 2000 capital  expenditures budget or (ii) if the Closing
were to occur after December 31, 2000, the sum of (x) $212,287,000 and (y) a pro
rata  portion  (based upon the number of elapsed  days in such year prior to the
Closing) of the aggregate  $222,800,000 2001 capital  expenditures  budget, then
the Sellers shall cause an aggregate amount of cash equal to any such shortfall,
not  restricted  under  applicable  regulatory  Laws as to its  use,  to pay for
capital  expenditures  of such  Company  or  Company  Subsidiary  (the  "Capital
Expenditure  Cash Fund") to be  retained  in the  accounts of one or more of the
Companies and Company  Subsidiaries at the Closing. The Capital Expenditure Cash
Fund shall not be counted as "Working Capital" for purposes of the adjustment to
Purchase Price pursuant to Sections 1.3 and 1.4.

                  4.15 Non-Compete.  (a) The Sellers covenant and agree that the
Sellers  and their  Subsidiaries,  for a period of three  years from the Closing
Date,  will not,  without  the Buyer's  prior  consent,  directly or  indirectly
compete with the Companies or Company Subsidiaries by engaging in local exchange
carrier  operations,  by providing  retail long  distance  services  (other than
calling card,  toll free and terminating  long distance) or by providing  retail
data  services  (other than  Internet  services  and  Webhosting  services) in a
Restricted Area, except as stated herein.

         (b) For the purposes of this Section  4.15, a  "Restricted  Area" means
the  telephone  service  area on the  Closing  Date of any  Company  or  Company
Subsidiary  that is an incumbent  local  exchange  carrier,  and in addition any
territory  adjacent to such  telephone  service area and within 20 miles of such
telephone  service  area,  but a  Restricted  Area  shall not  include  any such
adjacent  territory  that is  within  the  CMSAs (or  equivalent  Census  Office
classification for an equal or larger populated area) covering the New York City
metropolitan area or covering the Minneapolis-St. Paul metropolitan area.

         (c) For the  purposes of this  Section  4.15,  a Seller or a Subsidiary
shall not be deemed to compete  with a Company or  Company  Subsidiary  if it is
engaged in the  provision  of local  exchange  carrier  operations,  retail long
distance  services,  or any prohibited retail data services in a Restricted Area
by using services of a Company or Company Subsidiary other than on a reseller or
competitive  local  exchange  carrier  basis,  or if it is  providing  as of the
Closing Date any of such  services to a customer  that is  simultaneously  being
provided service to multiple  locations outside a Restricted Area by a Seller or
its Subsidiary as of the Closing Date.

         (d) For purposes of this Section  4.15, a Seller or a Subsidiary  shall
not be deemed to compete with a Company or Company Subsidiary if it provides any
retail long distance  service or retail data service to a customer  when: (i) it
has  engaged in seeking to win a bid or  otherwise  to  establish  the terms and
conditions for the provision of services on a regional, national or global basis
to a customer or prospective  customer that is not headquartered in a Restricted
Area,  (ii) it has  sought  from a Company  or  Company  Subsidiary  all of such
services that are offered by the Company  within a Restricted  Area on terms and
conditions,  including  price and assurance of service quality for such services
that it reasonably deems necessary to provide such services to such customer and
(iii)  such  Company or Company  Subsidiary  has failed to timely  commit to the
provision of such services on the reasonable terms and conditions sought by such
Seller or Subsidiary  or, if it has made such  commitment,  has failed to timely
provide such services on the terms and conditions to which it has committed.

<PAGE>

         (e) For purposes of this Section  4.15, a Seller or a Subsidiary  shall
not be deemed to compete with a Company or Company Subsidiary if it provides any
retail long distance  service or retail data service to a customer  when: (i) it
has  expressed in writing to a Company or Company  Subsidiary a firm interest in
seeking to win a bid or otherwise to establish the terms and  conditions for the
provision of services on a regional,  national, or global basis to a customer or
prospective  customer that is  headquartered  in a Restricted  Area, (ii) it has
sought from a Company or Company  Subsidiary a commitment to team to win the bid
or otherwise to provide services offered by the Company or Company Subsidiary to
such customer and (iii) such Company or Company  Subsidiary has failed to timely
provide to the Seller or Subsidiary  the right to include such services in a bid
on a right of first refusal basis.

         (f) This Section 4.15 shall not be deemed to prohibit the  provision by
Seller or a Subsidiary of any wireless service licensed on a multistate basis by
the FCC.

         (g) This  Section  4.15 shall not be construed to prohibit any activity
by an  entity  in  which  a  Seller  or one of its  Subsidiaries  has an  equity
ownership of not more than 15%, or the preexisting operations of any entity that
may acquire a Seller or any of its Affiliates.

         (h) This Section shall not be construed to prohibit the  acquisition by
Seller or one of its Subsidiaries of any business if, upon such acquisition by a
Seller or any of its Subsidiaries, such Seller or Subsidiary uses its reasonable
best  efforts to divest or dispose as promptly as  practicable  on  commercially
reasonable terms that portion of such acquired business that may otherwise cause
a breach  under this  Section  4.15,  and the Buyer  shall not  commence,  or if
commenced,  will immediately  discontinue,  any efforts to enforce the foregoing
covenants with respect to such  acquisition by suit,  petition for injunction or
otherwise,  so long as such  divestiture  or disposal  is being  pursued in good
faith by such Seller or Subsidiary.

         (i) The Sellers and the Buyer agree that this  covenant  not to compete
and  its  specific  limitations  constitute  a  reasonable  covenant  under  the
circumstances and is supported by adequate consideration.

                  4.16  Transition  Plan.  Within 30 days after the date hereof,
the Buyer shall deliver to the Sellers a list of five  proposed  representatives
to  a  joint  transition  team,  which  shall  include  expertise  from  various
functional specialties associated or involved in providing billing,  payroll and
other  support  services to be provided to the Frontier  LEC Business  after the
Closing.  The Sellers will add their five representatives to such team within 15
days after  receipt  of the  Buyer's  list.  Such team will be  responsible  for
preparing as soon as reasonably  practicable  after the date hereof but at least
60 days prior to the Closing  Date a  transition  plan which will  identify  and
describe substantially all of the various transition activities that the parties
plan to complete  before and after the Closing and any other transfer of control
matters  that  any  party  reasonably  believes  should  be  addressed  in  such
transition plan. The Buyer and the Sellers shall use reasonable efforts to cause
their  representatives  on such  transition  team to cooperate in good faith and
take all reasonable steps necessary to develop a mutually acceptable  transition
plan during such period.

<PAGE>

                  Article 5.  Conditions to Obligations of the Buyer.
                              --------------------------------------

                  The  obligations of the Buyer to consummate  the  transactions
contemplated  by this Agreement are, at its option,  subject to  satisfaction of
each of the following conditions:

                  5.1  Representations  and Warranties.  (a) The representations
         and warranties of the Sellers  contained herein (other than the Special
         Representations)  shall be true and  correct in all  material  respects
         (other than those  representations and warranties that are qualified by
         Material  Adverse  Effect,  which  shall  be true  and  correct  in all
         respects)   at  and  as  of  the  Closing  Date  as  though  each  such
         representation  and  warranty  were made at and as of such time,  other
         than such  representations  and warranties as are made as of a specific
         date, in each case except for changes that are  expressly  contemplated
         by this Agreement,  and except for such failures to be true and correct
         that (without regard to materiality  concepts therein once such failure
         is established) would not, individually or in the aggregate, reasonably
         be expected to have a Material Adverse Effect.

                  (b)  The   representations   and  warranties  of  the  Sellers
         contained in Sections 2.4(a), 2.4(c), 2.4(d), 2.5 and 2.6 and the first
         sentence    of   Section    2.4(b)    (collectively,    the    "Special
         Representations")  shall be true and correct in all  respects at and as
         of the Closing Date.

                  5.2  Performance  by the  Sellers.  All of the  covenants  and
         agreements  to be  complied  with and  performed  by the  Sellers on or
         before the Closing Date shall have been  complied  with or performed in
         all material respects.

                  5.3 Certificate. The Sellers shall have delivered to the Buyer
         a certificate,  dated as of the Closing Date, executed on behalf of the
         Sellers by their duly authorized officers to the effect of Sections 5.1
         and 5.2.

                  5.4  Consents;  No  Objections.  (a)  The  applicable  waiting
         periods (and any extension thereof) under the HSR Act shall have ex-
         pired or been terminated; and

                  (b) All approvals for the Sale from the FCC and PUCs,  and all
         material  consents  from third  parties,  shall have been  obtained and
         become  final  and  non-appealable  (provided  that if any  appeal or a
         petition for  reconsideration is filed after any such approval has been
         obtained,  such approval shall be deemed to be final and non-appealable
         unless the Buyer  shall  have  delivered  to the  Sellers an opinion of
         counsel  rendered in good faith that it is probable  that such approval
         will be reversed  and/or  vacated  upon any such appeal or petition for
         reconsideration)  (i)  other  than  those  the  failure  of which to be
         obtained would not reasonably be expected to have,  individually  or in
         the  aggregate,  a  Material  Adverse  Effect,  and  (ii)  without  the
         imposition of conditions  that would  individually or in the aggregate,
         reasonably  be  expected to have a Material  Adverse  Effect or a Buyer
         Material Adverse Effect.

<PAGE>

                  5.5 No Proceedings or Litigation.  No preliminary or permanent
         injunction or other order issued by any United States  federal or state
         Governmental  Authority,  nor any Law  promulgated  or  enacted  by any
         United States federal or state Governmental Authority,  that restrains,
         enjoins or otherwise prohibits the transactions  contemplated hereby or
         limits  the  ability in any  respect  of the  rights of any  Company or
         Company  Subsidiary  to hold its assets and  conduct the  Frontier  LEC
         Business as it is being  conducted  as of the  Closing  Date such as to
         have a Material Adverse Effect or a Buyer Material  Adverse Effect,  or
         imposes  civil or criminal  penalties on any  stockholder,  director or
         officer of the Buyer if such transactions are consummated,  shall be in
         effect;  provided,  however,  that the  provisions  of this Section 5.5
         shall not be  available  to any party  whose  failure  to  fulfill  its
         obligations  pursuant  to Section  4.4 shall have been the cause of, or
         shall have resulted in, such order or injunction.

                  5.6 No Material Events.  Since the date hereof, there have not
         been any  circumstances,  changes  in or effects  on the  Frontier  LEC
         Business that,  individually  or in the aggregate,  had or would in the
         reasonably foreseeable future have a Material Adverse Effect.

                  Article 6.  Conditions to Obligations of the Seller.
                              ---------------------------------------

                  The  obligations of the Seller to consummate the  transactions
        contemplated  by this  Agreement  are, at its option,  subject to satis-
        faction of each of the following conditions:

                  6.1  Representations  and Warranties.  The representations and
         warranties of the Buyer  contained  herein shall be true and correct in
         all material respects (other than those  representations and warranties
         that are qualified by Material Adverse Effect,  which shall be true and
         correct in all  respects)  at and as of the Closing Date as though each
         such  representation  and  warranty  were made at and as of such  time,
         other  than such  representations  and  warranties  as are made as of a
         specific  date,  in each case  except for  changes  that are  expressly
         contemplated by this Agreement, and except for such failures to be true
         and correct that (without regard to materiality  concepts  therein once
         such  failure  is  established)  would  not,  individually  or  in  the
         aggregate,  reasonably be expected to have a Material Adverse Effect on
         the business, results of operations or financial condition of the Buyer
         and its Subsidiaries, taken as a whole.

                  6.2  Performance  by  the  Buyer.  All of  the  covenants  and
         agreements  to be complied  with and performed by the Buyer on or prior
         to the Closing Date shall have been  complied  with or performed in all
         material respects.

                  6.3 Certificate. The Buyer shall have delivered to the Sellers
         a certificate,  dated as of the Closing Date, executed on behalf of the
         Buyer by its duly authorized officers to the effect of Sections 6.1 and
         6.2.

<PAGE>

                  6.4   Consents;  No Objections.   (a)  The applicable  waiting
         periods (and any extension thereof) under the  HSR Act shall have  ex-
         pired or been terminated; and

                  (b) All approvals for the Sale from the FCC and PUCs,  and all
         material  consents  from third  parties,  shall have been  obtained and
         become  final  and  non-appealable  (provided  that if any  appeal or a
         petition for  reconsideration is filed after any such approval has been
         obtained,  such approval shall be deemed to be final and non-appealable
         unless  the  Seller  shall  have  delivered  to the Buyer an opinion of
         counsel  rendered in good faith that it is probable  that such approval
         will be reversed  and/or  vacated  upon any such appeal or petition for
         reconsideration)  (i)  other  than  those  the  failure  of which to be
         obtained would not reasonably be expected to have,  individually  or in
         the  aggregate,   a  Material  Adverse  Effect  and  (ii)  without  the
         imposition of conditions  that would  individually or in the aggregate,
         reasonably be expected to have a Material  Adverse Effect or an adverse
         effect  (other than an immaterial  effect) in the business,  results of
         operations or financial  condition of the Sellers or their Subsidiaries
         (other than the Companies and the Company Subsidiaries).

                  6.5 No Proceedings or Litigation.  No preliminary or permanent
         injunction or other order issued by any United States  federal or state
         Governmental  Authority,  nor any Law  promulgated  or  enacted  by any
         United States federal or state Governmental Authority,  that restrains,
         enjoins or otherwise prohibits the transactions  contemplated hereby or
         limits the  ability in any respect of the rights of any Company to hold
         its  assets  and  conduct  the  Frontier  LEC  Business  as it is being
         conducted  as of the  Closing  Date such as to have a Material  Adverse
         Effect or an adverse  effect (other than an  immaterial  effect) in the
         business,  results of operations or financial  condition of the Sellers
         or  their  Subsidiaries  (other  than  the  Companies  and the  Company
         Subsidiaries),   or  imposes   civil  or  criminal   penalties  on  any
         stockholder,  director or officer of the Buyer if such transactions are
         consummated, shall be in effect; provided, however, that the provisions
         of this Section 5.5 shall not be  available to any party whose  failure
         to fulfill its obligations  pursuant to Section 4.4 shall have been the
         cause of, or shall have resulted in, such order or injunction.

                  6.6   Purchase Price Adjustment Limitation.   The  Performance
         Adjustment component of the Estimated Adjustment, if any, shall not ex-
         ceed $200,000,000.

<PAGE>
                  Article 7.  Tax Matters.
                              -----------

                  7.1 Liability  for Taxes.  (a) The Sellers shall be liable for
and shall  indemnify the Buyer as the case may be, for (i) all Taxes (as defined
below)  imposed  on the  Companies  or  Company  Subsidiaries,  or for which the
Companies or Company  Subsidiaries may otherwise be liable, for any taxable year
or period that ends on or before the Closing Date  ("Pre-Closing  Tax  Periods")
and,  with respect to any portion of a taxable year or period  beginning  before
and ending  after the  Closing  Date  ("Straddle  Period"),  the portion of such
Straddle  Period  ending  on and  including  the  Closing  Date,  and  (ii)  all
liabilities  imposed on the Companies or Company  Subsidiaries  on or before the
Closing  Date  under  Treasury  Regulations  Section  1.1502-6  (or any  similar
provision of state,  local or foreign law) for Taxes of the Sellers or any other
corporation  which is  affiliated  with Sellers  (other than the  Companies  and
Company Subsidiaries).

                  (b) The Buyer shall be liable  for,  and shall  indemnify  the
Sellers and their  Affiliates  for,  all Taxes  imposed on the Sellers or any of
their Affiliates with respect to the Companies and Company  Subsidiaries for any
taxable year or period that begins after the Closing Date and, with respect to a
Straddle Period, the portion of such Straddle Period beginning after the Closing
Date.

                  (c) For purposes of this Section 7.1, whenever it is necessary
to determine the  liability for Taxes of the Companies and Company  Subsidiaries
for a portion of a Straddle Period:

                               (i) real,  personal and intangible property Taxes
                  ("property  Taxes") for the Pre-Closing Tax Period shall equal
                  to the amount of such property  Taxes for the entire  Straddle
                  Period multiplied by a fraction, the numerator of which is the
                  number of days  during  the  Straddle  Period  that are in the
                  Pre-Closing  Tax  Period and the  denominator  of which is the
                  number of days in the Straddle Period; and

                              (ii)  all  other  Taxes  for the  Pre-Closing  Tax
                  Period shall be  determined by assuming that the Companies and
                  Company  Subsidiaries  had a taxable year or period that ended
                  at the close of the Closing Date.

                  (d) The Buyer  covenants  that it will not cause or permit any
         Company or Company Subsidiary or any Affiliate of the Buyer (i) to take
         any action on the  Closing  Date other than in the  ordinary  course of
         business, including but not limited to the distribution of any dividend
         or the effectuation of any redemption,  that could give rise to any Tax
         liability or reduce any Tax attribute of the Sellers or any  affiliated
         group of which the  Sellers  are  members or (ii) to make or change any
         Tax election,  amend any Tax Return or take any Tax position on any Tax
         Return,  take any  action,  omit to take any  action or enter  into any
         transaction that results in any increased Tax liability or reduction or
         any Tax attribute of the Sellers or any  affiliated  group of which the
         Sellers are members in respect of any Pre-Closing Tax Period. The Buyer
         agrees  that the Sellers or any  affiliated  group of which the Sellers
         are  members  shall  have  no Tax  liability  or  reduction  of any Tax
         attribute  resulting  from  any  action  referred  to in the  preceding
         sentence and agrees to indemnify  and hold  harmless the Sellers or any
         affiliated  group of which the Sellers are members against any such Tax
         and any loss,  liability,  claim, damage,  expense or Tax in connection
         therewith.

<PAGE>

                  7.2 Tax Refunds.  The Sellers  shall be entitled to any refund
or credit of any Taxes of the  Companies  and  Company  Subsidiaries,  including
interest paid thereon, with respect to Pre-Closing Tax Periods or the portion of
any Straddle Periods ending on and including the Closing Date. The Sellers shall
have the right to determine whether any claim for refund for such Taxes shall be
made on behalf of the Sellers by the Companies or Company  Subsidiaries.  If the
Sellers  elect to make a claim for  refund,  the Buyer,  the  Companies  and the
Company   Subsidiaries   shall   cooperate   fully  in   connection   therewith.
Notwithstanding  the  foregoing,  the Sellers  shall not be entitled to make any
claim for refund of Taxes which would materially  adversely affect the liability
for Taxes of the Buyer, the Companies or the Company Subsidiaries for any period
after the Closing Date without the prior written consent of the Buyer; provided,
however,  that such consent shall not be unreasonably  withheld and such consent
shall not be necessary to the extent that the Sellers have indemnified the Buyer
against the effects of any such  settlement.  The Sellers  shall  reimburse  the
Buyer, the Companies and the Company  Subsidiaries for reasonable  out-of-pocket
expenses incurred in providing such cooperation.

                  7.3  Adjustment to Purchase  Price.  The Buyer and the Sellers
agree to report any  indemnification  payment made by the Sellers  under Section
7.1 as an  adjustment  to purchase  price,  contribution  to  capital,  or other
non-taxable  amount to the extent that there is  substantial  authority for such
reporting position under applicable law.

                  7.4 Amended  Returns.  The Sellers  shall be  responsible  for
filing any  amended  consolidated,  combined  or  unitary  Tax  Returns  for any
Pre-Closing   Tax  Period  or  Straddle   Period  of  the  Company  and  Company
Subsidiaries  which are required as a result of examination  adjustments made by
the Internal Revenue Service or by the applicable state, local or foreign taxing
authorities for such taxable years or periods as finally  determined;  provided,
however,  that such Tax Returns,  to the extent they relate to the  Companies or
Company  Subsidiaries  shall  be  prepared  in a  manner  consistent  with  past
practices to the extent that  preparing  them in such a manner is permissible by
the Internal Revenue Service or by the applicable state, local or foreign taxing
authorities.  The Sellers shall provide notice to the Buyer of all such provided
returns to the extent they relate to the Companies or Company Subsidiaries.  For
those  jurisdictions  in which  separate Tax Returns are filed by the Company or
Company  Subsidiaries  for any  Pre-Closing Tax Period or Straddle  Period,  any
required amended returns resulting from such examination adjustments, as finally
determined,  shall be prepared by the  Sellers  and  furnished  to the Buyer for
review and comment  ten days prior to the due date for filing  such  returns and
the Sellers shall incorporate all reasonable  comments of the Buyer. Buyer shall
cause to be executed all waivers of statute of limitations or powers of attorney
as may be necessary for Sellers to exercise their rights under this Section.

<PAGE>

                  7.5 Tax Returns.  The Sellers  shall  prepare,  or cause to be
prepared,  and file or cause to be filed when due, including extensions thereof,
all Tax Returns that are required to be filed with respect to the  Companies and
Company  Subsidiaries for Pre-Closing Tax Periods and shall pay any Taxes due in
respect of such Tax Returns,  and the Buyer shall file or cause to be filed when
due all Tax Returns that are required to be filed subsequent to the Closing with
respect to the Companies and Company  Subsidiaries  for taxable years or periods
beginning  and ending  after the Closing Date and shall timely pay any Taxes due
in respect of such Tax Returns.  The Sellers  shall have the right to prepare or
cause to be prepared all unitary, combined, or consolidated Tax Returns that are
required to be filed with respect to the Companies and Company  Subsidiaries for
any  Straddle  Period.  Buyer shall  prepare or cause to be  prepared  any other
Straddle Period Tax Returns.  Any such Straddle Period Tax Return (regardless of
which party  prepares  it) shall be prepared  in a manner  consistent  with past
practices and without a change of any election or accounting method and shall be
submitted by the preparing  party to the other party  (together with  schedules,
statements and supporting  documentation) at least 30 days prior to the due date
(including extension of such Tax Return),  provided,  however, that with respect
to sales tax returns,  such returns shall be submitted by the preparing party to
the other party at least five days prior to the due date. Such other party shall
have the right to review all work papers and procedures used to prepare any such
Tax Return solely to the extent that such work papers and  procedures  relate to
the  Companies  and the Company  Subsidiaries.  If such other party,  within ten
Business  Days after  delivery of any such Tax Return,  notifies  the  preparing
party in writing  that it objects to any of the items in such Tax Return  solely
to  the  extent  that  such  items  relate  to  the  Companies  or  the  Company
Subsidiaries,  the  preparing  party shall  attempt in good faith to resolve the
dispute and, if they are unable to do so, the  disputed  items shall be resolved
(within a reasonable time,  taking into account the deadline for filing such Tax
Return) by an internationally  recognized  independent accounting firm chosen by
and mutually  acceptable to both the Buyer and the Sellers.  Upon  resolution of
all such items,  the  relevant  Tax Return  shall be  adjusted  to reflect  such
resolution and shall be binding upon the parties without further adjustment. The
costs,  fees and expenses of such  accounting  firm shall be born equally by the
Buyer and the Sellers.

                  7.6 Tax  Contest  Provisions.  Whenever  the Buyer  receives a
notice of any pending or threatened Tax audit or assessment for any  Pre-Closing
Tax Period or Straddle  Period,  the Buyer shall promptly  inform the Sellers in
writing.  The Sellers  shall have the right to control,  at their own cost,  any
resulting  proceedings  respect to any  Pre-Closing  Tax Period and to determine
whether and when to settle any such claim, assessment or dispute. The Buyers and
the Sellers shall jointly control any resulting  proceedings with respect to any
Straddle Period and shall jointly  determine whether and when to settle any such
claim, assessment or dispute.  Notwithstanding the foregoing,  the Sellers shall
not be entitled to settle, either  administratively or after the commencement of
litigation,  any claim for Taxes which  would  materially  adversely  affect the
liability for Taxes of the Buyer, the Companies or the Company  Subsidiaries for
any period  after the  Closing  Date  without the prior  written  consent of the
Buyer.  Such  consent  shall  not be  unreasonably  withheld,  and  shall not be
necessary to the extent that the Sellers have  indemnified the Buyer against the
effects of any such settlement.  Whenever any taxing authority sends a notice of
an audit,  initiates  an  examination  of any Company or Company  Subsidiary  or
otherwise  asserts a claim,  makes an assessment or disputes the amount of Taxes
for any taxable  period  beginning  after the Closing  Date,  the Sellers  shall
promptly  inform  the Buyer in  writing,  and the Buyer  shall have the right to
control,  at its cost, any resulting  proceedings  and to determine  whether and
when to settle  any such  claim,  assessment  or  dispute.  Notwithstanding  the
foregoing, the Buyer shall not be entitled to settle, either administratively or
after the commencement of litigation, any claim for Taxes which would materially
adversely  affect  the  liability  for Taxes of the  Sellers  without  the prior
written  consent  of the  Sellers,  provided  that  such  consent  shall  not be
unreasonably  withheld.  The Buyer  shall  cause to be  executed  all waivers of
statute of limitations or power of attorneys as may be necessary for the Sellers
to exercise  their  rights under this  Section.  The Buyer shall not execute any
waivers of the statute of limitations for the Companies or Company  Subsidiaries
for any Pre-Closing Period without the consent of the Sellers.

<PAGE>

                  7.7 Termination of Tax Allocation Agreements.  Any and all tax
allocation or sharing agreements or arrangements,  whether or not written,  that
may have been entered into by and between the Sellers and its affiliates, on the
one hand, and the Companies and Company  Subsidiaries,  on the other hand, shall
be terminated as to the  Companies  and Company  Subsidiaries  as of the Closing
Date,  and no  payments  which  are  owed  by or to  the  Companies  or  Company
Subsidiaries pursuant thereto shall be made thereunder.  After the Closing Date,
this Agreement shall be the sole Tax sharing agreement relating to the Companies
and Company Subsidiaries for all Pre-Closing Tax Periods.

                  7.8  Assistance  and  Cooperation.  Each of the  Buyer and the
Sellers  will  provide  the other  with such  assistance  as may  reasonably  be
requested by each of them in connection  with the preparation of any Tax Return,
any audit or other  examination  by any taxing  authority,  or any  judicial  or
administrative proceedings relating to liability for Taxes, and each provide the
other with any records or information  which may be relevant to such Tax Return,
audit or  examination,  proceedings  or  determination.  Such  assistance  shall
include making  employees  available on a mutually  convenient  basis to provide
additional  information and explanation of any material  provided  hereunder and
shall include  providing  copies of any relevant Tax Return and supporting  work
schedules.  The party requesting  assistance hereunder shall reimburse the other
for reasonable expense incurred in providing such assistance.

                  7.9 Transfer and  Conveyance  Taxes.  The Sellers,  on the one
hand, and the Buyer,  on the other hand,  shall each be liable for and shall pay
one-half of all applicable  sales,  transfer,  recording,  deed, stamp and other
similar taxes,  including,  without  limitation,  any real property  transfer or
gains  taxes (if  any),  resulting  from the  consummation  of the  transactions
contemplated by this Agreement.

                  7.10  Global  Crossing  Options.  (a)  The  Sellers  shall  be
entitled to claim any and all  deductions  (the  "Option  Deductions"),  for all
federal, state, local and foreign purposes,  attributable to the exercise by any
of the employees of the Frontier LEC Business of any Global stock  options,  and
the Buyer shall not take,  nor permit the Companies or Company  Subsidiaries  to
take, any position or action (including,  without limitation,  the filing of any
Tax Returns) which would interfere  with, or be  inconsistent  with, the Sellers
claiming the Option Deductions.

                  (b) If, pursuant to a final determination  (within the meaning
of Section  1313 of the Code),  the Sellers are not entitled to claim all or any
portion of the Option  Deductions,  then (i) the Buyer  shall,  at the  Sellers'
expense,  take all actions,  including without  limitation,  promptly filing, or
causing the Companies or Company  Subsidiaries to file, amended Tax Returns,  as
are necessary to allow the Companies or Company Subsidiaries to claim the Option
Deductions,  and (ii) shall pay, or cause the Companies or Company  Subsidiaries
to pay, to the  Sellers  all  refunds or credits  received by the Sellers or the
Companies or Company  Subsidiaries  attributable to the Option Deductions within
ten days after  receipt of such refund (or, in the case of a credit,  within ten
days after the credit is allowed or applied against any other Tax liability).

<PAGE>

                  7.11  Carryback  of  Net  Operating  Losses.  The  Buyer,  the
Companies and the Company  Subsidiaries  shall make any and all elections  under
Section 172(b)(3) of the Code and any corresponding  provisions of state,  local
or foreign law to relinquish the entire carryback period with respect to any net
operating loss attributable to the Companies or the Company  Subsidiaries in any
taxable period  beginning after the Closing Date that could be carried back to a
taxable year of the  Companies or the Company  Subsidiaries  ending on or before
the Closing Date.

                  7.12 Survival.  Claims for  indemnification  under Section 7.1
shall survive until the expiration of the applicable  statute of the limitations
(including any extensions or waivers of such statutes).

                  Article 8.  Employee Benefit and Labor Matters.
                              ----------------------------------

                  8.1  Continuation  of  Employee  Benefits.  From and after the
Closing Date and except as otherwise  expressly  provided in this Article 8, the
Buyer shall, and shall cause the Companies and Company Subsidiaries to:

<PAGE>

                  (a)  Provide,  until three  years after the Closing  Date (the
         "Benefit Continuation  Period"),  benefits that in the aggregate are no
         less favorable than the benefits provided, in the aggregate,  under the
         Employee  Benefit  Plans to the current  employees  of the Frontier LEC
         Business (the "Business  Employees")  immediately prior to the Closing.
         For purposes of this Agreement,  "Business  Employees" shall refer only
         to those  individuals  who are  actively  employed by the  Frontier LEC
         Business  on the  Closing  Date,  or who are on  vacation,  disability,
         family leave,  layoff or other leaves of absence which have been agreed
         or consented to (or protected by  applicable  law) on such Closing Date
         and who in any case where they are not actively employed on the Closing
         Date actually  return to active service with the Surviving  Corporation
         of the Buyer  within 12 months  (or such  longer  period  protected  by
         applicable  law)  after the  Closing  Date.  Not in  limitation  of the
         foregoing but for clarification, during the Benefit Continuation Period
         the Buyer shall, or shall cause the Companies and Company Subsidiaries,
         to maintain a severance  program that provides payments and benefits to
         Business Employees whose employment  terminates during such period that
         are not less than the  payments  and  benefits  provided  for under the
         Change in Control  Severance  Plan for Salary Band Levels 25 and above,
         as maintained by GCNA (the "Severance Plan") (assuming, for purposes of
         such plan, that a change of control has already  occurred) for the same
         type of  termination.  Notwithstanding  the  foregoing,  nothing herein
         shall require (i) the  continuation of any particular  employee benefit
         plan or  contribution  levels or prevent any  amendment or  termination
         thereof (subject to the maintenance,  in the aggregate, of the benefits
         as provided in the  preceding  sentence)  or (ii)  require the Buyer to
         continue or maintain any stock purchase or other equity plan related to
         the equity of Global or the Buyer. Notwithstanding the foregoing, until
         September 29, 2001, the Buyer shall, or shall cause the Company and the
         Company  Subsidiaries to, maintain  benefits that are equivalent to the
         benefits  provided  under  the  Employee   Telecommunications   Benefit
         program,  the Educational  Assistance Fund, the Educational  Assistance
         Program and the Executive Perquisite program;  provided,  however, that
         Sellers shall assume or retain all liabilities with respect to benefits
         accrued or payable  under the  foregoing  four  programs  to the extent
         incurred as of the Closing Date (which for purposes of the  Educational
         Assistance Fund shall mean that any four-year scholarship awarded prior
         to the Closing Date shall be deemed  incurred  with respect to all four
         years of such  scholarship so long as the student remains  eligible for
         such  scholarship  under the terms of such  Fund).  In the event of any
         sale,  transfer or other disposition by the Buyer of all or any part of
         the  Frontier  LEC  Business  or of the  Companies  and/or the  Company
         Subsidiaries  (whether by merger, sale of stock or assets or otherwise)
         (any such event, a "Sale") prior to the end of the Benefit Continuation
         Period,  the Buyer shall cause any such purchaser to assume and perform
         all  obligations  of the Buyer under this  Section  8.1(a) for not less
         than the balance of the Benefit Continuation Period.

                  (b) (i)  Waive any  limitations  to  pre-existing  conditions,
         exclusions  and  waiting  periods  with  respect to  participation  and
         coverage  requirements  applicable to the Business  Employees under any
         welfare  benefit  plan in  which  such  employees  may be  eligible  to
         participate  after the Closing to the extent that such  limitations did
         not apply or had been  satisfied by such  Business  Employees and their
         covered dependents, (ii) provide each Business Employee with credit for
         any co-payments and deductibles  paid prior to the Closing for the year
         in which the Closing occurs in satisfying any applicable  deductible or
         out-of-  pocket  requirements  under any welfare  benefit plan in which
         such  employees may be eligible to participate  after the Closing,  and
         (iii)  recognize  all  service of the  Business  Employees  rendered as
         employees of the Sellers,  and during the period that the Companies and
         the Company  Subsidiaries  were  Subsidiaries  of the Sellers,  for all
         purposes  (including,  without  limitation,  purposes of eligibility to
         participate,  vesting  credit,  entitlement  for benefits,  and benefit
         accrual  (except  for  purposes  of benefit  accrual  under any defined
         benefit  cash balance  pension  plan) in any benefit plan in which such
         employees may be eligible to participate after the Closing, to the same
         extent taken into  account  under a  comparable  Employee  Benefit Plan
         immediately prior to the Closing Date.

<PAGE>

                  8.2 Termination of  Participation  in Employee  Benefit Plans;
Defined Benefit Pension Plans.  Except as set forth herein, the Buyer shall not,
and shall  cause the  Companies  and  Company  Subsidiaries  not to,  assume any
Employee Benefit Plans  maintained or sponsored by the Sellers.  Effective as of
the Closing Date,  the Business  Employees  shall cease to participate in any of
the Employee  Benefit  Plans  maintained  or  sponsored by the Sellers,  and the
Companies  and Company  Subsidiaries  shall cease to be  contributing  employers
under any  Employee  Benefit  Plan.  In  addition,  with respect to any Employee
Benefit Plan that is a defined benefit pension plan (collectively, the "Sellers'
Pension  Plans"),  the Sellers shall not transfer any assets or liabilities with
respect to any Business Employees who participated in any such plans immediately
prior to the Closing Date; provided,  however,  that the Sellers shall cause the
applicable  Sellers'  Pension  Plans to  recognize  all service  provided by the
Business  Employees  after the Closing Date to the Buyer,  the Companies and the
Company  Subsidiaries   (collectively,   the  "Buyer  Group")  for  purposes  of
eligibility for the commencement of benefits thereunder; and provided,  further,
in connection with the foregoing, (i) Buyer shall, or shall cause the applicable
member of the Buyer Group,  to provide the Sellers  with  written  notice of the
termination  of  employment  occurring  after the Closing  Date of any  Business
Employee who participated in the Sellers' Pension Plan prior to the Closing Date
(a "Termination  Notice") and (ii) in the event of any Sale whereby the Business
Employees are  transferred  from Buyer or otherwise  outside of the Buyer Group,
(x) Buyer  shall,  or shall  cause the  applicable  member of the Buyer Group to
continue to provide  such  Termination  Notice even after such Sale or (y) Buyer
shall cause the  acquiring  entity to agree to provide such  Termination  Notice
after such Sale.

                  8.3  Defined  Contribution  Plan.  (a) As soon  as  reasonably
practicable  after the Closing Date,  the Buyer shall,  or shall cause the Buyer
Group to,  provide a defined  contribution  plan for the benefit of the Business
Employees  (which  plan may be an  existing  plan or plans  of the  Buyer)  (the
"Successor  401(k) Plan"),  that has those features that are provided for in the
Sellers' 401(k) Plan, which are required by Section  411(d)(6) of the Code to be
provided by the Successor 401(k) Plan (the "Protected  Benefits").  In addition,
the Buyer shall, or shall cause the Buyer Group to, take all necessary  actions,
if any, to qualify  such plan under the  applicable  provisions  of the Code and
shall make any and all filings and submissions to the  appropriate  governmental
agencies  required to be made by it in  connection  with the  transfer of assets
described below. As soon as reasonably practicable following the delivery to the
Sellers of a favorable  determination  letter from the Internal  Revenue Service
regarding the qualified status of the Successor 401(k) Plan (or, if earlier, the
delivery of an opinion of the Buyer's  counsel,  reasonably  satisfactory to the
Sellers,  to such  effect),  the Sellers shall cause the trustee of the Sellers'
401(k) Plan to transfer,  in the form of cash and marketable securities (or such
other form as may be agreed by the Buyer and the Sellers)  (the  "Assets"),  the
full account balances of the Business Employees (which account balances shall be
fully vested) under the Sellers'  401(k) Plan (which account  balances will have
been  credited with  appropriate  earnings  attributable  to the period from the
Closing Date to the date of transfer described herein), reduced by any necessary
benefit or withdrawal  payments to or in respect of Business Employees occurring
during  the  period  from the  Closing  Date to the date of  transfer  described
herein,  to the  appropriate  trustee as designated by the Buyer under the trust
agreement  forming a part of the  Successor  401(k)  Plan.  With respect to that
portion of the Assets  that is  comprised  of shares of capital  stock of Global
("Global Stock"),  Buyer shall cause the trustee of the Successor 401(k) Plan to
hold such shares in trust for the benefit of the Business  Employees  until such
time as any such employee elects to dispose of his or her shares;  and provided,
further,  that in no event shall the Successor 401(k) Plan be required to permit
participants  to  otherwise  invest in Global  Stock,  whether  with  additional
contributions   made  into  such  plan,   reallocation  of  other  Assets  of  a
participant's account, or otherwise. In consideration for the transfer of assets
described herein,  the Buyer shall, or shall cause the Buyer Group to, effective
as of the date of transfer  described  herein,  assume all of the obligations of
the Sellers in respect of the account balances accumulated by Business Employees
under the Sellers' 401(k) Plans on or after the Closing Date.

<PAGE>

                  (b) Notwithstanding anything provided in Section 8.3(a) to the
contrary, in the event that the provision of the Protected Benefits would impose
upon the Buyer or the Buyer Group material costs and expenses of  administration
that the parties  reasonably  agree would impose an unreasonable and substantial
burden on the Buyer (or the Buyer  Group,  as  applicable),  the  trustee of the
Successor  401(k) Plan shall not be  required to accept the  transfer of account
balances  from the Sellers'  401(k) Plan pursuant to Section  8.3(a);  provided,
however,  the  parties  agree  that it  would  constitute  an  unreasonable  and
substantial  burden on Buyer or the  Buyer  Group if the  Buyer  were  required,
solely for the purposes of accepting the  trustee-to-trustee  transfer of Assets
(pursuant to Section  8.3(a),  above),  to establish a new and separate  defined
contribution  plan.  In lieu of such  trustee-to-trustee  transfer,  the Sellers
shall take any actions reasonably necessary to provide for a distribution to the
Business  Employees  of  their  vested  account  balances  pursuant  to  Section
401(k)(10) of the Code, to the extent that such employees  elect to receive such
distributions,  and the Buyer shall, or shall cause the Buyer Group to, take any
actions  reasonably  necessary to cause the Successor 401(k) Plan to receive any
such  distributions (in cash and in shares of Global Stock, as applicable) which
any such  Business  Employee  may elect to roll over into such 401(k)  plan.  In
addition, in the event any such Business Employee elects to roll over his or her
vested account balances into the Successor 401(k) Plan, the Buyer shall take all
actions necessary to permit such Business Employee to roll over any loan balance
outstanding  under the Sellers  401(k) Plan prior to the  Closing  Date,  to the
extent permitted by applicable Law.

         (c) Notwithstanding  anything in this Agreement to the contrary,  in no
event shall the Sellers  transfer,  or cause to be transferred,  the assets,  if
any, of, or liabilities with respect to the Business Employees under, either the
Supplemental  Management  Pension Plan or the  Supplemental  Retirement  Savings
Plan.

                  8.4  Post-Retirement  Benefits.  (a) Sellers  shall  retain or
assume the  liability  for all  post-retirement  medical  and/or life  insurance
benefits (the "Post Retirement Welfare Benefits") for (i) any former employee of
the Frontier LEC Business  who, as of the Closing  Date,  was either  retired or
otherwise  terminated  employment with the Sellers prior to the Closing Date and
was entitled to Post-Retirement  Welfare Benefits from the Sellers at such time,
or (ii) is a non-Union  Employee,  whether or not eligible  for  post-retirement
welfare  benefits as of the Closing Date (even if they continue their employment
with the Buyer or the Buyer Group after the Closing  Date);  provided,  however,
that the foregoing  benefits shall be secondary to any medical or life insurance
benefit  coverage that such a person described in clauses (i) or (ii), above may
otherwise be eligible to receive under any plan, program or arrangement provided
by the Buyer or any member of the Buyer Group or pursuant to any Assumed CBAs.

                  (b)  With  respect  to any  Business  Employee  who is a Union
Employee  as of the  Closing  Date,  the Buyer  shall  assume  all  liabilities,
obligations  and  responsibilities  with  respect to  providing  Post-Retirement
Welfare  Benefits,  if any,  to such  employees  under any  Assumed  CBAs or any
Post-Retirement  Welfare  Benefits  programs  which the Buyer or the Buyer Group
maintain for such employees after the Closing Date.

<PAGE>

                  (c) As soon as  practicable  on or after the Closing Date, the
Sellers  shall  transfer any assets that are  dedicated  or otherwise  allocated
exclusively  for the purpose of funding and  determining  the accrued  liability
with  respect to the  Post-Retirement  Welfare  Benefits of the Union  Employees
assumed by the Buyer  pursuant  to Section  8.4(b),  above.  To the extent  such
transfer  occurs after the Closing Date,  the amount of the transfer shall equal
the assets as of the Closing Date plus the interest on such assets  accrued from
the Closing  Date to the date the assets are  transferred  hereunder,  at a rate
equal to the assumed  discount rate used to value the foregoing  liability as of
the Closing Date (as set forth in the Buck Consulting  Report),  adjusted by any
contributions  made by, or payments  made to, the Union  Employees in respect of
the Post-Retirement  Welfare Benefits prior to the date the foregoing assets are
transferred.

                  8.5 Collective Bargaining  Agreements.  Effective on and after
the  Closing  Date,  the Buyer  shall  assume all of the  collective  bargaining
agreements (including, without limitation,  pursuant to the specified provisions
of  the  collective  bargaining  agreements  set  forth  in  Section  8.5 of the
Disclosure  Schedule) (all such agreements,  the "Assumed CBAs") and other labor
contracts with respect to any Business Employees  existing  immediately prior to
the Closing Date  (including,  without  limitation,  the obligation,  if any, to
contribute to any  multiemployer  pension or welfare plans) and to continue,  to
the extent required under such agreements and other contracts,  to employ all of
the Business Employees covered by such agreements,  whether or not then actively
at work,  including,  without  limitation,  any  Business  Employees  who are on
vacation leave, leave of absence, sick leave or disability leave for the periods
set forth  therein.  The Buyer shall also honor any  reemployment  rights of any
current or former  Business  Employees  including,  but not limited to, any such
persons who are receiving long-term disability benefits as of the Closing Date.

                  8.6 WARN. On and for 90 days after the Closing Date, the Buyer
shall not,  and shall  cause the  Companies  and  Company  Subsidiaries  not to,
implement any employment  terminations,  layoffs or hours reductions or take any
other action which could result in a "plant closing" or "mass layoff",  as those
terms are defined in the Worker  Adjustment and Retraining  Notification  Act of
1988 ("WARN") or similar events under applicable  state law,  affecting in whole
or in part any facility,  site of employment or operating  unit, or any employee
employed by any Company or Company  Subsidiary,  or which could  require  either
Seller,  any Company or Company  Subsidiary  or the Buyer to give notice or take
any other action required by WARN or applicable state law.

                  8.7 Annual  Incentive  Compensation.  On the Closing Date, the
Sellers  shall pay, or cause to be paid,  to all  Business  Employees a pro rata
portion of any bonuses  otherwise payable in respect of the fiscal year in which
the  Closing  Date  occurs  (the  "Bonuses")  pursuant  to the  Sellers'  annual
incentive  compensation  plans.  The amount of such Bonuses  shall be calculated
based on the amounts accrued in respect of such Bonuses on the books and records
of the Frontier LEC  Business as of the end of the month  immediately  preceding
the month in which the Closing Date occurs,  which  Bonuses  would  otherwise be
payable after the end of the applicable fiscal year.

                  Article 9.  Indemnification.
                              ---------------

                  9.1 Indemnification by the Sellers. Subject in all respects to
the provisions of this Article 8, the Sellers hereby agree jointly and severally
to  indemnify  and  hold  harmless  the  Buyer  and  its  Affiliates,  officers,
directors, employees, agents and representatives after the Closing Date from and
against any Claims and Damages incurred by them arising out of or resulting from

<PAGE>

                  (a)  any  breach  on the  part  of  the  Sellers  of  (i)  any
         representation  or  warranty  made by the  Sellers  in Article 2 hereof
         (other  than  those set forth in  Section  2.17) or in any  certificate
         delivered  pursuant to this Agreement or (ii) any covenant or agreement
         made by the Sellers in this Agreement; or

                  (b) any matter on the Probable  Liabilities List to the extent
         that the amount of the  expense  and/or  loss for such  matter  becomes
         capable of being  "reasonably  estimated"  (within  the meaning of such
         term under GAAP and determined on a basis  consistent with that used to
         determine  the  Probable  Liabilities  List) within 18 months after the
         Closing Date (a "Liability Claim").

                  9.2  Indemnification by the Buyer.  Subject in all respects to
the provisions of this Article 8, the Buyer hereby  agrees,  and shall cause the
Companies and Company Subsidiaries,  jointly and severally to indemnify and hold
harmless  the  Sellers and their  respective  Affiliates,  officers,  directors,
employees,  agents and  representatives  after the Closing Date from and against
any Claims and Damages incurred by them arising out of or resulting from

                  (a)  any   breach  on  the  part  of  the  Buyer  of  (i)  any
         representation  or warranty made by the Buyer in Article 3 hereof or in
         any  certificate  delivered  pursuant  to this  Agreement  or (ii)  any
         covenant or agreement made by the Buyer in this Agreement; or

                  (b) any  obligation  or  liability  reflected  in the Combined
         Liabilities  or Combined  Working  Capital  used to adjust the Purchase
         Price pursuant to Section 1.3 to the extent so reflected.

                  9.3 Limitations on Indemnification  Claims and Liability.  (a)
The respective  representations  and warranties of the Sellers and the Buyer set
forth  in  this  Agreement  or in any  certificate  delivered  pursuant  to this
Agreement, and the opportunity to make a claim for indemnification, or otherwise
be indemnified or held  harmless,  under this Article 9 with respect  thereto or
with respect to (i) any covenant or agreement relating to any action required by
this  Agreement  to be taken  prior to or at the  Closing or (ii) any  Liability
Claim shall survive until,  and expire with, and be terminated and  extinguished
upon,  the date that is 18 months after the Closing Date.  Any and all covenants
and  agreements  relating to any action  required by this  Agreement to be taken
after the Closing and the obligation of the Buyer with respect to Section 9.2(b)
shall survive the Closing  forever and shall not expire with,  and be terminated
and extinguished upon, the Closing.

<PAGE>

                  (b) The Sellers  shall not be  obligated  to indemnify or hold
harmless any  Indemnified  Party under Section 9.1 (i) for any Claims or Damages
incurred by such Indemnified Party in connection with any individual  occurrence
or related series of  occurrences  that do not exceed $25,000 or (ii) unless and
until  Claims or Damages in respect of the  indemnification  obligations  of the
Sellers under Section 9.1 exceed in the aggregate  $50,000,000,  following which
(subject to the  provisions of this Article 9) the Sellers shall be obligated to
indemnify or hold harmless an Indemnified  Party only for such Claims or Damages
which,  when  aggregated  with all other  Claims and Damages  indemnified  under
Section 9.1, exceed such threshold  amount or (iii) to the extent that Claims or
Damages,  when  aggregated with all other Claims and Damages  indemnified  under
Section  9.1,  exceed  $200,000,000  or (iv)  for any  matter  reflected  in the
Combined  Liabilities or Combined  Working  Capital to the extent used to adjust
the Purchase Price pursuant to Section 1.3. For purposes of this Section 9.3(b),
the amount of any Claims and  Damages  shall be computed as set forth in Section
9.4.

                  (c) In addition  to the  foregoing  limitations  and any other
limitations  under  this  Agreement,  the  Sellers  shall  not be  obligated  to
indemnify or hold harmless any Indemnified Party under Section 9.1(b) unless and
until Claims or Damages in respect of Liability  Claims  exceed in the aggregate
the  aggregate  amount of all matters on the Probable  Assets List for which the
asset values of such matters have become capable of being "reasonably estimated"
(within the meaning of such term under GAAP and determined on a basis consistent
with that used to determine  the Probable  Assets  Lists) within 18 months after
the Closing Date. To the extent that any matter or any additional  matter on the
Probable Asset List becomes so capable of being "reasonably  estimated" after an
indemnification  payment has been made with  respect to a Liability  Claim,  the
Buyer or its  Affiliate  shall  promptly  repay to the GCNA  such  amount of the
indemnification  payment as would not have been paid had the asset value of such
matter reduced the original  payment (and any such  repayment  shall be a credit
against any  applicable  indemnification  threshold or  limitation  set forth in
Section  9.3(b)  hereof)  at such time or times and to the extent  such  matters
become so estimable.

                  (d)   Notwithstanding   anything  to  the   contrary  in  this
Agreement,  the indemnifications in Sections 9.1 and 9.2 hereof will be the sole
and exclusive  remedies  available to the Buyer or the Sellers,  or any of their
respective   Affiliates,    officers,    directors,    employees,    agents   or
representatives,  after the  Closing  for  breaches  of any  representations  or
warranties in this  Agreement,  or any  certificate  delivered  pursuant to this
Agreement,  or any covenants or agreements  contained in this  Agreement  (other
than with respect to any covenant or agreement  relating to any action  required
by this Agreement to be taken after the Closing or to obligations or liabilities
reflected in Combined Liabilities or Combined Working Capital),  or otherwise in
connection with this Agreement  (other than as provided by Articles 1, 7 and 8).
Any claim for indemnification  must be made as provided in Sections 9.5, 9.6 and
9.7 hereof.

<PAGE>

                  9.4   Computation   of  Claims  and   Damages.   Whenever   an
Indemnifying  Party is required to indemnify  and hold  harmless an  Indemnified
Party from and against  and hold the  Indemnified  Party  harmless  from,  or to
reimburse  the  Indemnified  Party for,  any item of Claim or Damage  under this
Agreement,  the  Indemnifying  Party  will,  subject to the  provisions  of this
Article  9, pay the  Indemnified  Party the  amount  of the Claim or Damage  (i)
reduced by any amounts to which the  Indemnified  Party  actually  recovers from
third parties in connection with such Claim or Damage  ("Reimbursements"),  (ii)
reduced by the Net Proceeds of any insurance  policy payable to the  Indemnified
Party with respect to such Claim or Damage and (iii)  reduced  appropriately  to
take into account any Tax Benefit to the Indemnified  Party with respect to such
Claim or Damage,  net of all income  Taxes  resulting  from the  indemnification
payment.  For purposes of this Section  9.4, (x) "Net  Proceeds"  shall mean the
insurance  proceeds  actually paid, less any deductibles,  co-payments,  premium
increases,   retroactive  premiums  or  other  payment  obligations   (including
attorneys'  fees and other costs of  collection)  that relates to or arises from
the making of the claim for indemnification and (y) "Tax Benefit" shall mean any
benefit actually  realized by the Indemnified Party in connection with the Claim
or Damage.  The  Indemnified  Party shall use reasonable  best efforts to pursue
Reimbursements  or Net Proceeds that may reduce or eliminate  Claims and Damages
and otherwise to mitigate Claims and Damages.  If any Indemnified Party receives
any  Reimbursement  or  Net  Proceeds,  or  realizes  a Tax  Benefit,  after  an
indemnification  payment is made which relates  thereto,  the Indemnified  Party
shall   promptly   repay  to  the   Indemnifying   Party  such   amount  of  the
indemnification  payment as would not have been paid had the Reimbursement,  Net
Proceeds or Tax Benefit  reduced the original  payment  (and any such  repayment
shall be a credit against any applicable indemnification threshold or limitation
set forth in Section  9.3(b)  hereof) at such time or times as and to the extent
that such Reimbursement or Net Proceeds is actually received or such Tax Benefit
is  actually  realized.  The  Indemnified  Party  shall  make  available  to the
Indemnifying  Party and its agents and  representatives  all pertinent  records,
materials and information,  and provide reasonable access during normal business
hours to the Indemnified Party's employees,  properties,  books and records, and
shall otherwise  cooperate with and assist the Indemnifying Party and its agents
and  representatives  in reviewing the propriety and the amount of any Claims or
Damages,  including,  without  limitation,  the  availability  and/or amounts of
Reimbursements, Net Proceeds and Tax Benefits.

                  9.5 Notice of Claims.  Upon obtaining  actual knowledge of any
Claim or Damage  which has given  rise to, or could  reasonably  give rise to, a
claim for  indemnification  hereunder,  the party seeking  indemnification  (the
"Indemnified  Party") shall,  as promptly as reasonably  practicable  (but in no
event later than 30 days) following the date the Indemnified  Party has obtained
such  knowledge,  give written notice (a "Notice of Claim") of such claim to the
party or parties  from  which  indemnification  is or will be sought  under this
Article 9 (the "Indemnifying Party"). The Indemnified Party shall furnish to the
Indemnifying  Party in good faith and in reasonable  detail such  information as
the  Indemnified  Party  may have with  respect  to such  indemnification  claim
(including  copies of any summons,  complaint or other  pleading  which may have
been  served on it and any  written  claim,  demand,  invoice,  billing or other
document  evidencing  or  asserting  the  same).  No  failure  or  delay  by the
Indemnified  Party in the performance of the foregoing shall reduce or otherwise
affect  the  obligation  of the  Indemnifying  Party to  indemnify  and hold the
Indemnified  Party  harmless,  except to the extent  that such  failure or delay
shall have materially  adversely  affected the  Indemnifying  Party's ability to
defend against,  settle or satisfy any liability,  damage, loss, claim or demand
for which such Indemnified Party is entitled to indemnification  hereunder.  For
purposes  of this  Section  9.5,  (i) a Notice of Claim given in good faith must
include to the extent then  practicable  a good faith  estimate of the amount of
the claim and (ii) a Notice  of Claim  shall be deemed to have been  given as of
the date the Probable  Liabilities  List is agreed upon or otherwise  determined
with respect to Liability  Claims.  Notwithstanding  anything to the contrary in
this Agreement,  no identification  of any party as an "Indemnifying  Party" for
purposes  of any of the  provisions  of  this  Agreement  shall  constitute  any
acknowledgment  by such party that it is liable to any Person under this Article
9.

<PAGE>

                  9.6 Defense of Third Party  Claims.  If any claim set forth in
the Notice of Claim given by an Indemnified Party pursuant to Section 9.5 hereof
is a claim asserted by a third party, the Indemnifying  Party shall have 30 days
after  the date  that the  Notice  of  Claim  is  given or  deemed  given by the
Indemnified Party to notify the Indemnified Party in writing of the Indemnifying
Party's  election to defend such third party claim on behalf of the  Indemnified
Party. If the  Indemnifying  Party elects to defend such third party claim,  the
Indemnified Party shall make available to the Indemnifying  Party and its agents
and representatives all witnesses,  pertinent records, materials and information
in the Indemnified  Party's possession or under the Indemnified  Party's control
as is  reasonably  required  by  the  Indemnifying  Party  and  shall  otherwise
cooperate  with and assist the  Indemnifying  Party in the defense of such third
party claim.  Regardless of which party is defending such third party claim, the
Indemnified  Party shall not pay,  settle or  compromise  such third party claim
without the consent of the Indemnifying  Party. If the Indemnifying Party elects
to defend such third party claim, the Indemnified  Party shall have the right to
participate in the defense of such third party claim, at the Indemnified Party's
own  expense.  In the event,  however,  that the  Indemnified  Party  reasonably
determines that  representation by counsel to the Indemnifying Party of both the
Indemnifying  Party and the  Indemnified  Party may present  such counsel with a
conflict of interest, then such Indemnified Party may employ separate counsel to
represent  or defend it in any such action or  proceeding  and the  Indemnifying
Party will, subject to the provisions of this Article 9, pay the reasonable fees
and  disbursements  of such  counsel  when due under  such  counsel's  customary
billing practices. If the Indemnifying Party does not elect to defend such third
party  claim or does not  defend  such  third  party  claim in good  faith,  the
Indemnified Party shall have the right, in addition to any other right or remedy
it may have hereunder, at the Indemnifying Party's expense, to defend such third
party claim; provided,  however, that such Indemnified Party's defense of or its
participation  in the defense of any such third party claim shall not in any way
diminish or lessen the  indemnification  obligations of the  Indemnifying  Party
under  this  Article  9.  If  the  Indemnifying  Party  subsequently  reasonably
determines that the Indemnified Party is not defending such third party claim in
good faith,  the  Indemnifying  Party  shall have the right,  in addition to any
other right or remedy it may have  hereunder,  to elect to assume the defense of
such third party claim and,  to the extent  that the  Indemnified  Party has not
defended  such  third  party  claim  in  good  faith,  and  whether  or not  the
Indemnifying  Party shall have  subsequently  assumed the defense  thereof,  the
indemnification obligations of the Indemnifying Party under this Article 9 shall
be reduced or eliminated to the extent that such failure to defend in good faith
shall have materially  adversely  affected the  Indemnifying  Party's ability to
defend against,  settle or satisfy any liability,  damage, loss, claim or demand
for which  such  Indemnified  Party is  otherwise  entitled  to  indemnification
hereunder.

<PAGE>

                  9.7  Special   Indemnification   Procedures  with  Respect  to
Environmental  Matters.  (a)  Notwithstanding  anything to the  contrary in this
Agreement, with respect to any potential claim for indemnification in connection
with,  arising out of or resulting from any breach on the part of the Sellers of
(i) any  representation  or warranty made by the Sellers in Section 2.13 hereof,
or in any  other  section  of this  Agreement  or in any  certificate  delivered
pursuant to this Agreement relating to matters relating to Environmental Laws or
Hazardous Materials,  (ii) any covenant or agreement made by the Sellers in this
Agreement  relating  to matters  relating  to  Environmental  Laws or  Hazardous
Materials  or  (iii)  any  Liability  Claim  relating  to  matters  relating  to
Environmental Laws or Hazardous  Materials,  which claim relates to the costs of
remediation of  environmental  conditions  (each, a  "Remediation  Claim"),  the
Notice of Claim  given to the Sellers  pursuant  to Section 9.5 hereof  shall be
required to set forth the condition  requiring  such  remediation,  the proposed
remedial  actions  (including  the  scope  of work  to be  performed)  (each,  a
"Remediation  Action")  and an  estimate  of the cost of such  remediation.  The
Sellers  shall be given the right to consult  with the Buyer of the  Remediation
Action  covered under this Section 9.7. The  Indemnified  Party shall consult in
good  faith  with the  Sellers  and their  representatives  with  respect to all
aspects of the  proposed  Remediation  Claim  specified  in the Notice of Claim,
including,  without  limitation,  the form and  substance of any  communications
plan,  report  or  submission  to be given to any  Governmental  Authority  with
respect to any Remediation  Action.  The costs of any  environmental  surveys or
testing,  geologic testing or engineering tests conducted in connection with any
potential  or  proposed  Environmental  Claim  (other  than those  required by a
Governmental  Authority in connection  with an identified  potential or proposed
Environmental   Claim),   including  laboratory  and  analytical  fees,  or  any
consultants or engineers engaged to assist in any review related thereto,  shall
be paid for by the party  conducting such surveys,  testing or tests or engaging
such consultants or engineers.

                  (b) With  respect  to any  Remediation  Actions  in  excess of
$500,000 in the aggregate,  the  Indemnified  Party shall, to the fullest extent
practicable,  seek in good faith  competitive  written  bids from at least three
qualified sources prior to having any of such Remediation Actions performed.  To
the extent that any Indemnified Party will be seeking  indemnification under the
provisions   of  this  Article  9,  with  respect  to  a   Remediation   Action,
indemnification with respect to such Remediation Action shall be limited to that
required to comply with  Environmental  Laws and the Indemnified Party shall use
its reasonable best efforts to minimize the amount of any  Remediation  Claim in
connection therewith.

                  (c) The  procedures  specified  in Sections  9.7(a) and 9.7(b)
above are  provided  solely  for the  purpose of  determining  the amount of the
indemnification  to which an  Indemnified  Party is entitled  under  Section 9.1
hereof with respect to a Remediation Claim. Nothing herein shall be construed to
restrict or limit in any way the remedial actions  actually  undertaken or costs
of remediation actually incurred with respect thereto.

<PAGE>

                  9.8 Probable Liabilities and Assets Lists. (a) Pursuant to the
procedures  and in accordance  with the time schedules set forth in Section 1.4,
the parties shall agree upon (or in the case of a Neutral Auditor Determination,
there shall be determined  for the parties  pursuant to Section 1.4) a list (the
"Probable  Liabilities List") of matters (the "Probable  Liabilities") that both
(i) with respect to which, as of the Closing Date, it is "probable"  (within the
meaning of such term under GAAP  consistently  applied and on a basis consistent
with the basis used in preparing the financial data and information described in
clauses  (ii) and  (iii) of  Section  2.6(a)  and as set forth in  Schedule  1.3
hereto) that a liability has been incurred and (ii) would have been reflected in
the Combined Liabilities for purposes of determining the Liabilities  Adjustment
or in Combined  Working  Capital for purposes of determining the Working Capital
Adjustment,  in each case  pursuant to Section  1.3(a) in  conformity  with GAAP
(including,  without limitation,  the materiality concepts thereof) consistently
applied and on a basis consistent with the basis used in preparing the financial
data and  information  described in clauses (ii) and (iii) of Section 2.6(a) and
as set forth in Schedule  1.3 hereto,  but for the fact that,  as of the Closing
Date,  the  amount  of the  expense  and/or  loss  for  such  matter  cannot  be
"reasonably estimated" (within the meaning of such term under GAAP).

                  (b) Pursuant to the procedures and in accordance with the time
schedules set forth in Section 1.4, the parties shall agree upon (or in the case
of a Neutral  Auditor  Determination,  there shall be determined for the parties
pursuant to Section  1.4) a list (the  "Probable  Assets  List") of matters (the
"Probable  Assets") that both (i) with respect to which, as of the Closing Date,
it is  "probable"  (within  the  meaning of such term  under  GAAP  consistently
applied and on a basis consistent with the basis used in preparing the financial
data and  information  described in clauses (ii) and (iii) of Section 2.6(a) and
as set forth in Schedule 1.3 hereto) that a current or long-term  receivable  of
the Companies or Company  Subsidiaries exists and (ii) would have been reflected
in the books and records of the Frontier LEC in conformity with GAAP (including,
without limitation,  the materiality concepts thereof)  consistently applied and
on the basis  consistent with the basis used in preparing the financial data and
information  described  in clauses  (ii) and (iii) of section  2.6(a) and as set
forth in Schedule 1.3 hereto, but for the fact that, as of the Closing Date, the
value of such asset cannot be "reasonably estimated" (within the meaning of such
term under GAAP).

                  Article 10.  Definitions.
                               -----------

                  Unless  otherwise  stated  in this  Agreement,  the  following
capitalized terms have the following meanings:

                  Access  Line means a  physical  circuit  over which  calls are
         switched in the telephone central offices,  and over which calls can be
         directed  to other  Access  Lines on the  Public  Switched  Network  or
         received  from other  Access  Lines  connected  to the Public  Switched
         Network.  In counting the number of Access  Lines,  (i) each digital T1
         circuit  (which  can  be  channelized  into  24  separate   voice-grade
         equivalent  lines) is counted as 24 Access Lines by the  Companies  and
         Company Subsidiaries in Rochester,  New York; Illinois;  Michigan;  and
         Wisconsin,  (ii) each PRI circuit (a T1 circuit used to provision  ISDN
         service) is counted as 23 Access Lines, (iii) both retail and wholesale
         market  segments  are  included  in  the  Access  Line  counts  in  the
         Rochester,  New York market and (v)  telephone  lines used for internal
         business  purposes  ("official"  lines) are  excluded  from Access Line
         counts.

                  Action  means  any  action,  suit,  claim,   arbitration,   or
         proceeding or investigation  (of which the Sellers or the Buyer, as the
         case  may be,  have  knowledge)  commenced  by or  pending  before  any
         Governmental Authority.

                  Adjustment has the meaning set forth in Section 1.4 hereof.

                  Affiliate  means,  with respect to any specified  Person,  any
         other  Person  that  directly,   or  indirectly  through  one  or  more
         intermediaries,  controls, is controlled by, or is under common control
         with such specified Person.

<PAGE>

                  Agreement  or this  Agreement  means this  Purchase  Agreement
         dated as of the date first  above  written  (including  the Annexes and
         Exhibits hereto and the Disclosure  Schedule) and all amendments hereto
         made in accordance with the provisions of Section 11.7 hereof.

                  Asset Purchase  Agreement has the meaning set forth in Section
2.21 hereof.

                  Buck  Consulting  Report means the report dated March 23, 2000
         by Buck  Consulting  relating to the January 1, 1999  valuation  of the
         post-retirement     non-pension    benefits    of    Global    Crossing
         Telecommunications.

                  Business Day means any day that is not a Saturday, a Sunday or
         other day on which banks are required or authorized by law to be closed
         in the City of New York.

                  Business  Employee  has the  meaning  set forth in Section 8.1
hereof.

                  Buyer has the meaning specified in the introductory  paragraph
to this Agreement.

                  Buyer Material  Adverse Effect means a material adverse effect
         on the business,  results of  operations or financial  condition of the
         Buyer and its Subsidiaries (not including the Companies and the Company
         Subsidiaries),  taken  as a whole;  provided  that,  for such  purpose,
         "material  adverse effect" shall be determined on the basis of the same
         magnitude  of effect  as that  used to  determine  a  Material  Adverse
         Effect.

                  Buyer Group has the meaning set forth in Section 8.2 hereof.

                  Capital  Expenditure  Cash Fund has the  meaning  set forth in
Section 4.13 hereof.

                  Carrier  Services  Agreement  has the  meaning  set  forth  in
Section 2.21 hereof.

                  CERCLA  means  the   Comprehensive   Environmental   Response,
Compensation, and Liability Act of 1980.

                  Claims  and  Damages  means,  except  as  otherwise  expressly
         provided  in  this  Agreement,  any and all  losses,  claims,  demands,
         liabilities,   obligations,   actions,  suits,  orders,   statutory  or
         regulatory  compliance  requirements,  or  proceedings  asserted by any
         Person (including,  without limitation,  Governmental Authorities), and
         all damages, costs, expenses,  assessments,  judgments,  recoveries and
         deficiencies,  including, to the extent required pursuant to Article 8,
         reasonable  attorneys' fees and costs, incurred by or awarded against a
         party to the extent  indemnified  in accordance  with Article 8 hereof,
         but shall not include any consequential, special, multiple, punitive or
         exemplary  damages,  except  to  the  extent  such  damages  have  been
         recovered  by a third  party and are the subject of a third party claim
         for which  indemnification  is  available  under the  express  terms of
         Article 8 hereof.

<PAGE>

                  Closing has the meaning set forth in Section 1.6 hereof.

                  Closing  Cash Payment has the meaning set forth in Section 1.3
hereof.

                  Closing Date has the meaning set forth in Section 1.6 hereof.

                  Closing  Statement  has the  meaning  set forth in Section 1.4
hereof.

                  Code means the Internal Revenue Code of 1986, as amended.

<PAGE>

                  Combined  Liabilities means all long-term  liabilities  (which
         does not include contra asset accounts  including,  but not limited to,
         accumulated   deprecation  or  allowance  for  uncollectible  accounts)
         properly  recorded on a combined  balance sheet for the Company and the
         Company Subsidiaries excluding the following: (i) deferred taxes to the
         extent they reflect timing  differences,  (ii) deferred  investment tax
         credits,  (iii) minority  interests (to the extent they are non-cash in
         nature and permitted under this Agreement), (iv) deferred revenues, (v)
         any amount  included in the  definition of "Working  Capital," (vi) all
         accrued  employee  benefit or pension  obligations  (A) with respect to
         which  assets  will be  transferred  to the  Buyer or Buyer  Group,  or
         obligations  are assumed by the  Sellers,  pursuant to Article 8 or (B)
         which have been established by or at the direction of the Buyer,  (vii)
         liabilities  created from or in  connection  with the  obtaining of any
         Required  Consents  or other  consents or  approvals  for the Sale from
         third parties or under  Regulatory  Law (provided  that one-half of any
         liabilities  accrued as of the date of the  combined  balance  sheet in
         conformity with GAAP consistently  applied that were created from or in
         connection  with the  obtaining of Required  Consents  from PUCs (other
         than where the Companies or Company  Subsidiary receive a corresponding
         asset) shall be included in Combined Liabilities up to a maximum,  when
         aggregated  together  with any current  liabilities  created from or in
         connection  with the  obtaining  of such  Required  Consents  from PUCs
         included  in  the   calculation  of  Combined   Working   Capital,   of
         $15,000,000),  (viii) any other "non-cash"  liabilities,  (ix) Taxes to
         the  extent  they are  subject  to  Article 7 and (x) all  intercompany
         liabilities (other than those that are not canceled pursuant to Section
         4.13(a)),  all of the foregoing as  determined on a combined  basis for
         the  Companies  or  Company   Subsidiaries   in  conformity  with  GAAP
         consistently  applied and on a basis  consistent with the basis used in
         preparing the financial data and information  described in clauses (ii)
         and  (iii)  of  Section  2.6(a)  or  as  expressly   required  in  this
         definition.  For  purposes of  determining  Combined  Liabilities,  the
         liability  attributable to the long-term portion of the Post-Retirement
         Welfare  Benefits of Union Employees shall be calculated using the same
         actuarial  assumptions  that  were  used  to  determine  the  financial
         statement  disclosures  as of December 31, 1999 in the Buck  Consulting
         Report.  To the extent  that,  due to tax timing  differences,  any Tax
         deduction  relating to any liability  included in Combined  Liabilities
         will not be available in a Pre-Closing Tax Period, Combined Liabilities
         shall be reduced appropriately to take into account any Tax Benefit (as
         defined in Section  9.4)  actually  realized at or prior to the time of
         calculation  of the  Adjustment  to the  Buyer  with  respect  to  such
         liability;  and if the Buyer actually  realizes a Tax Benefit after the
         Adjustment  has been  determined,  the Buyer shall promptly pay to GCNA
         such  additional  amount as would have been paid as Purchase  Price had
         the  Tax  Benefit   reduced  the  original   calculation   of  Combined
         Liabilities,  at such time or times as and to the extent  that such Tax
         Benefit is actually realized.

                  Combined  Working  Capital  means,  without  duplication,  the
         aggregate of (i) all cash and cash equivalents  (other than the Capital
         Expenditure  Cash Fund),  accounts  receivables  and other  receivables
         (less  the  reserve  for  uncollectible  accounts),   prepaid  expenses
         (including prepaid Taxes),  security deposits,  inventories,  supplies,
         any other  current  assets and  deferred  income  Taxes  recorded  as a
         current asset (but excluding any  intercompany  accounts) less (ii) all
         accounts  payable,  accrued  expenses  and current  liabilities,  other
         accruals,  salaries,  bonuses  and  commissions  payable,  the  current
         portion of long-term Indebtedness and deferred income Taxes recorded as
         a current liability (but excluding (1) any intercompany accounts (other
         than  intercompany  payables that are not canceled  pursuant to Section
         4.13(a)), (2) all accrued employee benefit obligations (A) with respect
         to which assets will be  transferred  to the Buyer or Buyer  Group,  or
         obligations  are assumed by the  Sellers,  pursuant to Article 8 or (B)
         which have been  established  by or at the direction of the Buyer,  (3)
         Taxes to the extent they are  subject to Article 7 and (4)  liabilities
         created  from or in  connection  with  the  obtaining  of any  Required
         Consent or other consents or approvals for the Sale of third parties or
         under  any  Regulatory  Law  (provided  that  one-half  of any  current
         liabilities  accrued as of the date of the  combined  balance  sheet in
         conformity with GAAP consistently  applied that were created from or in
         connection  with the  obtaining of Required  Consents  from PUCs (other
         than   where  the   Companies   or  Company   Subsidiaries   receive  a
         corresponding  asset) shall be included in the  calculation of Combined
         Working  Capital up to a maximum,  when  aggregated  together  with any
         long-term  liabilities created from or in connection with the obtaining
         of such  Required  Consents from PUCs  included in the  calculation  of
         Combined Liabilities, of $15,000,000)), all as determined on a combined
         basis for the Companies  and Company  Subsidiaries  in conformity  with
         GAAP consistently applied and on a basis consistent with the basis used
         in preparing the financial  data and  information  described in clauses
         (ii) and (iii) of  Section  2.6(a)  or as  expressly  required  by this
         definition.  For purposes of determining  Combined Working Capital, the
         liability,   if  any,  attributable  to  the  current  portion  of  the
         Post-Retirement Welfare Benefits of Union Employees shall be calculated
         using the same  actuarial  assumptions  that were used in preparing the
         Buck  Consulting  Report.  To  the  extent  that,  due  to  tax  timing
         differences,  any Tax deduction  relating to any liability  included in
         the calculation of Combined  Working Capital will not be available in a
         Pre-Closing  Tax Period,  Combined  Working  Capital shall be increased
         appropriately  to take into  account  any Tax  Benefit  (as  defined in
         Section 9.4) actually  realized at or prior to the time of  calculation
         of the Adjustment to the Buyer with respect to such  liability;  and if
         the Buyer actually realizes a Tax Benefit after the Adjustment has been
         determined, the Buyer shall promptly pay to GCNA such additional amount
         as would have been paid as Purchase Price had the Tax Benefit increased
         the original  calculation of Combined Working Capital,  at such time or
         times as and to the extent that such Tax Benefit is actually realized.

<PAGE>

                  Confidentiality  Agreement means the confidentiality agreement
dated June 7, 2000 between the Buyer and Global.

                  control (including the terms "controlled by" and "under common
         control with"),  with respect to the relationship  between or among two
         or more Persons, means the possession,  directly or indirectly,  of the
         power to direct or to cause the  direction of the affairs or management
         of a Person,  whether  through the ownership of voting  securities,  by
         contract or otherwise,  including,  without limitation,  the ownership,
         directly  or  indirectly,  of  securities  having  the power to elect a
         majority  of the board of  directors  or  similar  body  governing  the
         affairs of such Person.

                  Debt  Adjustment  has the  meaning  set forth in  Section  1.3
hereof.

                  Disclosure Schedule means the Disclosure Schedule, dated as of
         the date  hereof,  delivered  to the Buyer by the Seller in  connection
         with this Agreement.

                  DOJ has the meaning set forth in Section 4.4 hereof.

                  Employee  Benefit  Plans means all  "employee  benefit  plans"
         within the meaning of Section 3(3) of ERISA,  all bonus,  stock option,
         stock   purchase,   incentive,   deferred   compensation,   retirement,
         supplemental  retirement,  severance and other employee  benefit plans,
         programs,  policies or  arrangements,  and all  employment,  retention,
         change of  control  or  compensation  agreements,  in each case for the
         benefit of, or relating to, any current  employee or former employee of
         any of  the  Companies  or  Company  Subsidiaries,  other  than  any de
         minimis,  fringe or  unwritten  benefit  plans,  programs,  policies or
         arrangements, the costs of which, to the Sellers, are not material.

                  Encumbrance  means any security  interest,  pledge,  mortgage,
         lien (including,  without limitation, tax liens), charge,  encumbrance,
         easement,  adverse  claim,  preferential  arrangement,  restriction  or
         defect in title that  adversely  affects the use of the property in the
         manner it is being used prior to the  Closing  Date or the value of the
         property as measured in the context of the current uses thereof.

                  Environmental  Claims  means  any  and  all  actions,   suits,
         demands,  demand letters,  claims,  liens, notices of non-compliance or
         violation,  investigations,  proceedings,  consent  orders  or  consent
         agreements   relating  in  any  way  to  any  Environmental   Law,  any
         Environmental  Permit,  Hazardous  Materials  or arising  from  alleged
         injury  or  threat of  injury  to  health,  safety or the  environment,
         including,  without  limitation  (a) by  Governmental  Authorities  for
         enforcement,  cleanup, removal, response,  remedial or other actions or
         damages   and   (b)  by  any   Person   for   damages,   contributions,
         indemnification, cost recovery, compensation or injunctive relief.

<PAGE>

Environmental Law means any Law relating to the environment,  health,  safety or
Hazardous  Materials,  in force and effect on the date hereof or, in the case of
the Sellers'  certificate  to be delivered in accordance  with the provisions of
Section 5.3 hereof,  on the Closing Date (exclusive of any amendments or changes
to such Law or any  regulations  promulgated  thereunder  or orders,  decrees or
judgments issued pursuant thereto which are enacted, promulgated or issued after
the date  hereof,  or in the case of such  certificate,  on or after the Closing
Date),  including  but not limited to,  CERCLA;  the Resource  Conservation  and
Recovery  Act of 1986 and  Hazardous  and Solid  Waste  Amendments  of 1984,  42
U.S.C. ss. ss. 6901 et seq.;   the  Hazardous  Materials  Transportation Act, 49
                    ------
U.S.C.ss.ss.6901  et seq.; the Clean Water Act, 33 U.S.C.ss.ss.1251 et seq.; the
                  ------                                            ------
Toxic Substances Control Act of 1976, 15 U.S.C.ss.ss.2601 et seq.;
                                                          ------
the Clean Air Act of 1966, as amended,  42  U.S.C.ss.ss.7401  et seq.;
                                                              ------
the Safe Drinking Water Act, 42 U.S.C.ss.ss.300f et seq.; the Atomic Energy Act,
                                                 ------
42  U.S.C.ss.ss.2011 et  seq.;  the Federal  Insecticide, Fungicide and Rodenti-
                     -------
cide  Act, 7  U.S.C.ss.ss.136  et seq.; and the Emergency Planning and Community
                               ------
Right-to-Know Act of 1986, 42 U.S.C.ss.ss.1101 et seq.
                                               ------
                  Environmental   Permits   means   all   permits,    approvals,
         identification  numbers,  licenses  and other  authorizations  required
         under any applicable Environmental Law.

                  Equipment  means  all  of  the  tangible  personal   property,
         machinery,  equipment, vehicles, rolling stock, furniture, and fixtures
         of the Frontier LEC Business in which any Company or Company Subsidiary
         has an interest,  by ownership or lease, together with any replacements
         thereof,  or additions  thereto made in the ordinary course of business
         between the date hereof and the Closing Date.

                  ERISA means the  Employee  Retirement  Income  Security Act of
         1974, as amended.

                  Estimated  Adjustment has the meaning set forth in Section 1.3
         hereof.

                  FCC means the Federal Communications Commission.

                  Financing Commitments has the meaning set forth in Section 3.6
        hereof.

<PAGE>

                  Frontier  LEC  Business  means  the  local  exchange   carrier
         operations  of Global and its  Subsidiaries,  and the cable  television
         operations  and  wireless  and  cellular  telephone  operations  of the
         Companies and Company Subsidiaries,  including, without limitation, the
         incumbent and competitive local exchange carrier operations of Frontier
         Telephone  of  Rochester,   Inc.,  the  rural  local  exchange  carrier
         operations of the other Companies and the Company  Subsidiaries and the
         retail Internet access, Web hosting,  data services (IP frame relay and
         asynchronous transfer mode) and directory services operations currently
         provided by the Companies and Company  Subsidiaries,  but excluding (i)
         competitive  local  exchange  carrier  and  resold  cellular  and other
         wireless  operations other than those conducted by the Companies or the
         Company  Subsidiaries  immediately  prior  to the  Closing,  (ii)  long
         distance  service  operations  other than (x) the retail long  distance
         customer base  purchased by the Companies and the Company  Subsidiaries
         and/or  (y)  marketing,   sales,  customer  service,  and  billing  and
         collection   services  performed  by  the  Companies  and  the  Company
         Subsidiaries  on an agency or contract  basis relating to long distance
         services not purchased by the Companies and Company Subsidiaries, (iii)
         the assets and  services  identified  in Section 2.5 of the  Disclosure
         Schedule as excluded  from the Frontier LEC Business and (iv)  Sellers'
         non-LEC marketed long distance  services (such as 800 services marketed
         nationally  to families with college  students).  For purposes for this
         definition,  "local exchange carrier operations" means the provision in
         the relevant  geographic area of (A) wireline local  exchange,  digital
         subscriber  line,  exchange  access and (to the extent not  provided by
         Subsidiaries  of the  Sellers  other  than the  Companies  and  Company
         Subsidiaries) intra-LATA toll telecommunications services to end users,
         (B)   wireline   exchange   access   telecommunications   services   to
         interexchange  carriers and other local exchange  carriers,  (C) retail
         sales of telephone  equipment and products  (subject to the non-compete
         agreement disclosed in Section 2.11 of the Disclosure Schedule) and (D)
         non-tariffed  public   communications   (pay  telephones),   commercial
         telecommunications   services  facilities  leasing  and  certain  other
         non-regulated services and products.

                  GAAP  means  United  States  generally   accepted   accounting
principles and practices as in effect from time to time.

                  GCNA has the meaning set forth in the  introductory  paragraph
to this Agreement.

                  Global has the meaning set forth in the introductory paragraph
to this Agreement.

                  Governmental  Authority means any United States federal, state
         or  local  government  or any  foreign  government,  any  governmental,
         regulatory,  legislative, executive or administrative authority, agency
         or commission or any court, tribunal, or judicial body.

                  Governmental   Order   means  any   order,   writ,   judgment,
         injunction,  decree, stipulation,  determination or award entered by or
         with any Governmental Authority.  Governmental Orders shall not include
         Permits.

                  Hazardous  Materials means  petroleum and petroleum  products,
         byproducts or breakdown products,  radioactive materials, and any other
         chemicals, materials, or substances designated, classified or regulated
         as being "hazardous" or "toxic", or words of similar import,  under any
         Environmental Law.

                  HSR Act means the Hart-Scott-Rodino Antitrust Improvements Act
         of  1976,  as  amended,  and  the  rules  and  regulations  promulgated
         thereunder.

                  Indebtedness  means  obligations with regard to borrowed money
         and leases  classified or accounted for as capital or financing  leases
         on  financial  statements,  but  shall  expressly  not  include  either
         accounts  payable  or  accrued  liabilities  that are  incurred  in the
         ordinary  course of  business or  obligations  under  operating  leases
         classified or accounted for as such on financial statements.

<PAGE>

                  Indemnified  Party has the  meaning  set forth in Section  9.5
hereof.

                  Indemnifying  Party has the  meaning  set forth in Section 9.5
hereof.

                  Intellectual  Property  means all patents,  trademarks,  trade
         names, domain names, service marks and copyrights, and applications for
         any of the  foregoing,  and  other  intellectual  property,  including,
         without limitation, computer software and programs, of the Frontier LEC
         Business,  whether  owned or used by, or  licensed  to, any  Company or
         Company Subsidiary.

                  knowledge  with  respect to the  Sellers  means,  exclusively,
         information of which the Chief Executive  Officer,  the Chief Financial
         Officer or any other  employee  of a Seller of Salary  Band Level 35 or
         above in GCNA's pay scale has knowledge after reasonable inquiry of the
         appropriate  managerial  employee of the Frontier  LEC Business  having
         supervisory responsibility for the matter concerned.

                  Law means any federal,  state, local or foreign statute,  law,
         ordinance,  regulation,  rule, code, order or other requirement or rule
         of law.

                  Liability  Claim  has the  meaning  set forth in  Section  9.1
         hereof.

                  Material Adverse Effect means any circumstance,  change in, or
         effect on the  Companies  or Company  Subsidiaries  that has a material
         adverse  effect on the  business,  results of  operations  or financial
         condition  of the Frontier  LEC  Business  taken as a whole;  provided,
         however, that Material Adverse Effect shall not include adverse effects
         relating to or resulting from (or, in the case of effects that have not
         yet  occurred,  reasonably  likely to result from) (i) the execution of
         this Agreement or the  announcement of agreement among the parties with
         respect  to the  transactions  contemplated  by  this  Agreement,  (ii)
         general  economic or industry  conditions that have a similar effect on
         other  participants  in the  industry  or  (ii)  regional  economic  or
         industry conditions that have a similar effect on other participants in
         the industry in such region.

                  Material  Contracts means the written  agreements,  contracts,
         policies, plans, mortgages, understandings, arrangements or commitments
         primarily relating to the Frontier LEC Business to which any Company or
         Company  Subsidiary  is a party or by which  any of the  assets  of the
         Frontier LEC Business are bound as described below:

                               (i)  any  agreement  or  contract  providing  for
                  payments  by the  Companies  or  Company  Subsidiaries  to any
                  Person in excess of $10,000,000 per year or $30,000,000 in the
                  aggregate  over the  five-year  period  commencing on the date
                  hereof;

<PAGE>
                              (ii)  any   employment   agreement  or  consulting
                  agreement or similar  contract  providing  for payments to any
                  Person in excess of  $350,000  per year or  $1,500,000  in the
                  aggregate  over the  five-year  period  commencing on the date
                  hereof;

                             (iii)  any  retention  or  severance  agreement  or
                  contract  with  respect  to any  officer of the  Frontier  LEC
                  Business  who is to be  employed  by any  Company  or  Company
                  Subsidiary following the Closing Date;

                              (iv) any lease of  Equipment  or Real  Property or
                  license  with  respect to  Intellectual  Property  (other than
                  licenses  granted in connection with the purchase of equipment
                  or other  assets) by the Frontier  LEC  Business  from another
                  Person  providing for payments to another  Person in excess of
                  $10,000,000  per year or $30,000,000 in the aggregate over the
                  five-year period commencing on the date hereof;

                               (v) any lease of  Equipment  or Real  Property or
                  license  with  respect to  Intellectual  Property  (other than
                  licenses  granted in connection with the purchase of equipment
                  or other  assets)  by the  Frontier  LEC  Business  to another
                  Person  providing for payments to the Seller or any Company or
                  Company  Subsidiary  in  excess  of  $10,000,000  per  year or
                  $30,000,000  in  the  aggregate  over  the  five-year   period
                  commencing on the date hereof;

                              (vi) any  joint  venture,  partnership  or similar
                  agreement or contract of the Frontier LEC Business;

                             (vii) any  agreement  or  contract  under which any
                  Company or Company Subsidiary,  or a Seller in connection with
                  the Frontier LEC Business, has borrowed or loaned any money in
                  excess of  $25,000,000  or issued or received any note,  bond,
                  indenture  or other  evidence  of  indebtedness  in  excess of
                  $25,000,000 or directly or indirectly guaranteed indebtedness,
                  liabilities or obligations of others in an amount in excess of
                  $25,000,000;

                            (viii) any  covenant  not to compete or  contract or
                  agreement,  understanding,   arrangement  or  any  restriction
                  whatsoever  limiting in any respect the ability of any Company
                  or Company  Subsidiary  to compete in any line of  business or
                  with any Person or in any area;

                              (ix) any  agreement or contract  with any officer,
                  director  or  employee  of  either  Seller or any  Company  or
                  Company  Subsidiary (other than employment  agreements covered
                  in clause (i) or  agreements  or  contracts  containing  terms
                  substantially   similar  to  terms   available   to  employees
                  generally)  or agreement or contract with either Seller or any
                  Subsidiary  of Global  that is  neither a Company  or  Company
                  Subsidiary providing for payments in excess of $10,000,000 per
                  year or $30,000,000 in the aggregate over the five-year period
                  commencing on the date hereof; and

<PAGE>

                               (x) any  resale,  co-location or  interconnection
         agreement.

         Material  Contracts  shall  not  include  any and  all  (w)  contracts,
         purchase orders,  purchase  commitments,  leases and agreements entered
         into in the  ordinary  course of business  and relating to the Frontier
         LEC Business (other than those described in clauses (iii), (iv), (v) or
         (vi) above) that (A) are terminable at will without  payment of premium
         or penalty by any Company or Company  Subsidiary or (B) are  terminable
         on not more than 60 days' written notice without  payment of premium or
         penalty  and do not involve  the  obligation  of any Company or Company
         Subsidiary to make payments in excess of $25,000,000  during the 60-day
         period  commencing on the Closing Date;  (x)  contracts,  sales orders,
         purchase orders,  purchase  commitments and agreements  entered into in
         the ordinary  course of business and relating to  integrated  marketing
         services or related services of the Frontier LEC Business.

                  Neutral  Auditor  has the  meaning  set forth in  Section  1.4
         hereof.

                  Neutral  Auditor  Determination  has the  meaning set forth in
         Section 1.4 hereof.

                  Notice  of Claim has the  meaning  set  forth in  Section  9.5
         hereof.

                  Option  Deductions  has the meaning set forth in Section  7.10
         hereof.

                  Performance  Adjustment  has the  meaning set forth in Section
         1.3 hereof.

                  Permits has the meaning set forth in Section 2.12 hereof.

                  Permitted Exceptions means each of the following:

                           (a)  mortgages,  security  interests  or other Encum-
                  brances described in Section 2.11 of the Disclosure Schedule;

                           (b) liens for  taxes,  assessments  and  governmental
                  charges or levies not yet due and  payable or the  validity of
                  which  is  being   contested  in  good  faith  by  appropriate
                  proceedings;

                           (c)   Encumbrances    imposed   by   law,   such   as
                  materialmen's,    mechanics',    carriers',    workmen's   and
                  repairmen's  liens and other  similar  liens,  arising  in the
                  ordinary course of business;

                           (d) pledges or deposits to secure  obligations  under
                  workers' compensation laws or similar legislation or to secure
                  public or statutory obligations;

<PAGE>
                           (e)  survey  exceptions,  rights  of way,  easements,
                  reciprocal easement agreements and other Encumbrances on title
                  to  real  property  that  do  not,   individually  or  in  the
                  aggregate,   materially  adversely  affect  the  use  of  such
                  property in the conduct of the  Frontier LEC Business as it is
                  being conducted prior to the Closing Date;

                           (f) zoning laws and other land use restrictions  that
                  do not materially  detract from the value or impair the use of
                  the  property  subject  thereto,   or  materially  impair  the
                  operation of the Frontier LEC Business;

                           (g) security interests in favor of suppliers of goods
                  for which payment has not been made in the ordinary  course of
                  business consistent with past practice;

                           (h)  Encumbrances on the interests of the lessors of
                  properties in which  the Frontier LEC Business holds  a lease-
                  hold interest; and

                           (i)  any and all other Encumbrances that would be im-
         material to the Frontier LEC Business.

                  Person means any individual,  partnership,  firm, corporation,
         limited   liability   company,   association,   trust,   unincorporated
         organization  or other  entity,  as well as any syndicate or group that
         would be deemed to be a person under Section 13(d)(3) of the Securities
         Exchange Act of 1934, as amended.

                  Pre-Closing  Tax Period has the  meaning  set forth in Section
         7.1 hereof.

                  Probable Assets has the meaning set forth in Section 9.8.

                  Probable Assets List has the meaning set forth in Section 9.8.

                  Probable Assets Statement has the meaning set forth in Section
         1.4.

                  Probable Liabilities has the meaning set forth in Section 9.8.

                  Probable Liabilities List has the meaning set forth in Section
         9.8.

                  Probable  Liabilities  Statement  has the meaning set forth in
         Section 1.4.

                  Proposed  Adjustment  has the meaning set forth in Section 1.4
         hereof.

                  PUC means any  state  public  service  commission  or  similar
         regulatory body.

                  Purchase  Price  has the  meaning  set  forth in  Section  1.3
         hereof.

<PAGE>
                  Real  Property  means the real  property  and related  mineral
         rights owned by, and all easements,  rights-of-way and other possessory
         interests in real estate of, the Frontier LEC  Business,  together with
         all  buildings  and  other   structures,   facilities  or  improvements
         currently  or  hereafter  located  thereon,   all  fixtures,   systems,
         equipment  and items of personal  property of the Frontier LEC Business
         attached or appurtenant  thereto, and all easements,  licenses,  rights
         and appurtenances relating to the foregoing.

                  Regulatory Law has the meaning set forth in Section 4.4(b).

                  Release means  disposing,  discharging,  injecting,  spilling,
         leaking, leaching,  dumping,  emitting,  escaping,  emptying,  seeping,
         placing and the like into or upon any land or water or air or otherwise
         entering into the environment.

                  Required  Consents  means  any  consents,  approvals,  orders,
         authorizations,  registrations, declarations and filings required under
         or in relation to (a) the HSR Act, (b) the  Communications Act of 1934,
         as amended,  and any rules and regulations  promulgated by the FCC, (c)
         state securities or "blue sky" laws, (d) the Securities Act of 1933, as
         amended, (e) the Securities Exchange Act of 1934, as amended, (f) laws,
         rules,  regulations,  practices and orders of any state or PUCs,  local
         franchising authorities, foreign telecommunications regulatory agencies
         or similar state or foreign  regulatory  bodies,  or the Federal Energy
         Regulatory  Commission,  (g) rules and  regulations of The Nasdaq Stock
         Market and The New York Stock Exchange, Inc. and (h) antitrust or other
         competition Laws of other jurisdictions.

                  S&P means Standard & Poor's Corporation.

                  Sale has the meaning set forth in the recitals hereto.

                  Sellers  has  the  meaning  set  forth  in  the   introductory
         paragraph to this Agreement.

                  Shares has the meaning set forth in Section 1.1 hereof.

                  Special  Representations  has the meaning set forth in Section
         5.1 hereof.

                  Straddle  Period  has the  meaning  set forth in  Section  7.1
         hereof.

                  Subsidiary of any Person means (i) any  corporation  more than
         50% of whose stock of any class or classes  having by the terms thereof
         ordinary  voting  power to elect a majority  of the  directors  of such
         corporation  is owned by such  Person  directly or  indirectly  through
         Subsidiaries and (ii) any  partnership,  limited  partnership,  limited
         liability company,  associates,  joint venture or other entity in which
         such Person directly or indirectly through Subsidiaries has more than a
         50% equity interest.

<PAGE>
                  Tax or Taxes  means  any and all  taxes,  fees,  withholdings,
         levies,  duties,  tariffs,  imposts,  and  other  charges  of any  kind
         (together  with any and all interest,  penalties,  additions to tax and
         additional  amounts  imposed  with  respect  thereto)  imposed  by  any
         government or taxing authority, including, without limitation, taxes or
         other  charges on or with  respect to income,  franchises,  windfall or
         other profits,  gross receipts,  property,  sales,  use, capital stock,
         payroll,   employment,    social   security,   workers'   compensation,
         unemployment compensation,  or net worth, taxes or other charges in the
         nature of excise, withholding, ad valorem, stamp, transfer, value added
         or gains taxes,  license,  registration  and  documentation  fees,  and
         customs duties, tariffs and similar charges.

                  Tax Return means any report, return, document,  declaration or
         other  information  or  filing  required  to be  supplied  to  any  Tax
         authority or jurisdiction  (foreign or domestic) with respect to Taxes,
         including, without limitation,  information returns, any documents with
         respect to or accompanying payments of estimated Taxes, or with respect
         to or accompanying  requests for the extension of time in which to file
         any such report, return, document, declaration or other information.

                  Union  Employee  means a  Business  Employee  whose  terms and
         conditions of  employment  are governed by the terms of any Assumed CBA
         (as defined in Section 8.5).

                  Working  Capital  Adjustment  has the  meaning  set  forth  in
         Section 1.3 hereof.

                  Article 11.  Miscellaneous Provisions.
                               ------------------------

                  11.1  Termination Rights.  (a)  Grounds for Termination.  This
 Agreement may be terminated:

                  (1)  by mutual consent of the parties;

                  (2) by either the Sellers or the Buyer, provided such party or
         parties are not then in material default hereunder, upon written notice
         to the  other  party  or  parties,  if the  Closing  hereunder  has not
         occurred on or before December 31, 2001;  provided that if all Required
         Consents   have  been   obtained   but  have  not   become   final  and
         non-appealable  as of such date,  then such date shall be  extended  to
         March 31, 2002; or

                  (3) by either the Sellers or the Buyer, upon written notice to
         the other party or parties,  if any  Governmental  Authority shall have
         issued a statute,  rule,  regulation,  order,  decree or  injunction or
         taken any other action permanently restraining,  enjoining or otherwise
         prohibiting  the purchase and sale  contemplated  by this Agreement and
         such statute,  rule,  regulation,  order, decree or injunction or other
         action shall have become final and nonappealable.

                  (b)   Post-Termination   Liability.   If  this   Agreement  is
terminated pursuant to Subsection 11.1(a) hereof, this Agreement shall thereupon
become  void and of no  further  effect  whatsoever,  and the  parties  shall be
released and discharged of all obligations  under this Agreement,  except (i) to
the  extent  of a  party's  liability  for  willful  material  breaches  of this
Agreement  prior to the time of such  termination,  (ii) as set forth in Section
4.5 hereof and (iii) the obligations of each party for its own expenses incurred
in connection with the  transactions  contemplated by this Agreement as provided
herein.

<PAGE>

                  11.2 Expenses.  Except as otherwise  specifically  provided in
this  Agreement,  all  out-of-pocket  costs  and  expenses,  including,  without
limitation,   fees  and  disbursements  of  counsel,   financial   advisors  and
accountants,  incurred in connection  with this  Agreement and the  transactions
contemplated  hereby  shall  be paid  by the  party  incurring  such  costs  and
expenses, whether or not the Closing shall have occurred.

                  11.3  Notices.  Any notice,  demand,  claim,  notice of claim,
request or communication  required or permitted to be given under the provisions
of this  Agreement  shall be in  writing  and  shall be deemed to have been duly
given (i) upon  delivery if delivered in person,  (ii) on the date of mailing if
mailed by  registered  or certified  mail,  postage  prepaid and return  receipt
requested,  (iii)  on the  date of  delivery  to a  national  overnight  courier
service,  or (iv)  upon  transmission  by  facsimile  (if such  transmission  is
confirmed by the addressee) if delivered  through such services to the following
addresses,  or to such other  address as any party may request by  notifying  in
writing  all of the other  parties to this  Agreement  in  accordance  with this
Section 11.3.

                  If to the Sellers:

                        Global Crossing Ltd.
                        360 North Crescent Drive
                         Beverly Hills, California 90210
                        Attention:     James Gorton, Esq.
                                       Senior Vice President and General Counsel
                          Facsimile No.: (310) 281-5820

                                and

                       Global Crossing North America, Inc.
                        180 South Clinton Avenue
                        Rochester, New York  14646
                          Attention: Joseph P. Clayton
                                       Chief Executive Officer
                          Facsimile No.: (716) 325-7639

                 with copies to:

                       Global Crossing North America, Inc.
                        180 South Clinton Avenue
                        Rochester, New York  14646
                        Attention:     Martin T. McCue, Esq.
                                       Senior Vice President and General Counsel
                          Facsimile No.: (716) 546-7823

                                            and

<PAGE>

                        Robert E. Spatt, Esq.
                        Simpson Thacher & Bartlett
                        425 Lexington Avenue
                          New York, New York 10017-3954
                          Facsimile No.: (212) 455-2502

                  If to the Buyer:

                         Citizens Communications Company
                        High Ridge Park
                           Stamford, Connecticut 06905
                          Attention: Scott N. Schneider
                                       Executive Vice President
                          Facsimile No.: (203) 614-5201

                  with copies to:

                         Citizens Communications Company
                        High Ridge Park
                           Stamford, Connecticut 06905

                        Attention:     L. Russell Mitten, Esq.
                                       Vice President and General Counsel
                          Facsimile No.: (203) 614-4651

                                            and

                        Jeffrey L. Hardin, Esq.
                          Fleischman and Walsh, L.L.P.
                           1400 Sixteenth Street, N.W.
                        Suite 600
                        Washington, D.C. 20036
                          Facsimile No.: (202) 387-3467

                  Any such notice  shall be deemed to have been  received on the
date of  personal  delivery,  the date set forth on the  Postal  Service  return
receipt,  or the date of delivery shown on the records of the overnight courier,
as applicable.

<PAGE>

                  11.4 Benefit and  Assignment.  This  Agreement will be binding
upon and  inure to the  benefit  of the  parties  hereto  and  their  respective
successors and permitted  assigns.  There shall be no assignment of any interest
under this  Agreement  by any party  except that the Buyer may assign its rights
hereunder to any wholly owned subsidiary of the Buyer;  provided,  however, that
no such  assignment  shall  relieve the assignor of its  obligations  under this
Agreement.  Nothing herein,  express or implied,  is intended to or shall confer
upon any other  Person any legal or  equitable  right,  benefit or remedy of any
nature whatsoever under or by reason of this Agreement.

                  11.5 Waiver.  Any party to this  Agreement  may (a) extend the
time for the  performance  of any of the  obligations or other acts of any other
party, (b) waive any inaccuracies in the  representations  and warranties of any
other party  contained  herein or in any  document  delivered by any other party
pursuant hereto or (c) waive compliance with any of the agreements or conditions
of any other party contained herein. Any such extension or waiver shall be valid
only if set forth in an  instrument  in writing  signed by the party to be bound
thereby.  Any waiver of any term or condition shall not be construed as a waiver
of any subsequent  breach or a subsequent  waiver of the same term or condition,
or a waiver of any other term or condition,  of this  Agreement.  The failure of
any party to assert any of its rights hereunder shall not constitute a waiver of
any such rights.

                  11.6  Severability.  If any  term or other  provision  of this
Agreement  is  invalid,  illegal or  incapable  of being  enforced by any Law or
public  policy,   all  other  terms  and  provisions  of  this  Agreement  shall
nevertheless  remain in full force and effect so long as the  economic  or legal
substance of the transactions  contemplated hereby is not affected in any manner
materially  adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall  negotiate  in good  faith to modify  this  Agreement  so as to effect the
original intent of the parties as closely as possible in an acceptable manner in
order that the  transactions  contemplated  hereby are consummated as originally
contemplated to the greatest extent possible.

                  11.7 Amendment.  This Agreement may not be amended or modified
except (a) by an  instrument  in writing  signed by, or on behalf of, the Seller
and the Buyer or (b) by a waiver in accordance with Section 11.5 hereof.

<PAGE>

                  11.8 Effect and Construction of this Agreement. This Agreement
embodies the entire  agreement and  understanding of the parties with respect to
the  subject  matter  hereof  and  supersedes  any  and  all  prior  agreements,
arrangements and  understandings,  whether written or oral,  relating to matters
provided for herein; provided, however, that the Confidentiality Agreement shall
remain in effect until the Closing. The language used in this Agreement shall be
deemed to be the language  chosen by the parties  hereto to express their mutual
agreement,  and this Agreement  shall not be deemed to have been prepared by any
single party hereto.  Disclosure of any fact or item in the Disclosure  Schedule
referenced by a particular  paragraph or section in this Agreement shall, should
the existence of the fact or item be relevant to any other paragraph or section,
be deemed to be  disclosed  with  respect  to that  other  paragraph  or section
whether or not a specific cross reference appears to the extent that the fact or
item  disclosed is  reasonably  clearly  applicable  to such other  paragraph or
section.  Disclosure of any fact or item in the  Disclosure  Schedule  shall not
necessarily  mean that such item or fact,  individually or in the aggregate,  is
material to the business,  results of  operations or financial  condition of the
Frontier LEC Business or that it is probable  that any  impairment  or liability
will result  therefrom.  The headings of the sections  and  subsections  of this
Agreement are inserted as a matter of  convenience  and for  reference  purposes
only and in no respect define,  limit or describe the scope of this Agreement or
the intent of any section or  subsection.  This Agreement may be executed in one
or  more   counterparts  and  by  the  different   parties  hereto  in  separate
counterparts,  each of which when executed shall be deemed to be an original but
all of which taken together shall  constitute one and the same  agreement.  This
Agreement  shall be governed by, and construed in accordance  with,  the laws of
the State of New York,  applicable to contracts  executed in and to be performed
entirely within that State.

                  11.9  Specific   Performance.   Each  of  the  parties  hereto
acknowledges and agrees that in the event of any breach of this Agreement,  each
non-breaching party would be irreparably and immediately harmed and could not be
made whole by monetary damages. It is accordingly agreed that the parties hereto
(i) waive, in any action for specific performance,  the defense of adequacy of a
remedy at law and (ii) shall be  entitled,  in addition  to any other  remedy to
which they may be entitled at law or in equity,  to compel specific  performance
of this Agreement in any action instituted in any state or federal court sitting
in New York, New York.

<PAGE>

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

                             GLOBAL CROSSING LTD.

                             By: /s/ THOMAS J. CASEY
                                ----------------------------------
                              Name: Thomas J. Casey
                              Title: Vice Chairman

                             GLOBAL CROSSING NORTH AMERICA, INC.

                             By: /s/ MARTIN T. MCCUE
                                ----------------------------------
                              Name: Martin T. McCue
                                Title: Senior Vice President

                             CITIZENS COMMUNICATIONS COMPANY

                             By: /s/ SCOTT N. SCHNEIDER
                               -----------------------------------
                                Name: Scott N. Schneider
                                Title:   Executive Vice President

<PAGE>
<TABLE>
<CAPTION>
                                                                         ANNEX I

                                  THE COMPANIES
                                  -------------

<S>                                 <C>

772 shares of Common Stock          Frontier Telephone of Rochester, Inc.

  6 shares of Common Stock          Frontier Communications of Rochester, Inc.

357 shares of Common Stock          Frontier Subsidiary Telco Inc.

200 shares of Common Stock          Frontier Communications of Sylvan Lake, Inc.

100 shares of Common Stock          Frontier Communications of Seneca-Gorham, Inc.

506,758 shares of Common Stock      Frontier Communications of New York, Inc.

 21,742 shares of Common Stock      Frontier Communications of AuSable Valley, Inc.

</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                      ANNEX II

                            THE COMPANY SUBSIDIARIES

Company Subsidiary                               Class of Stock   Number of Shares and Record Owner
---------------------------------------------------------------------------------------------- -----------------------------------
<S>                                               <C>             <C>
Frontier Communications of DePue, Inc.            Common Stock    554 shares owned by Frontier Subsidiary Telco Inc.

DePue Communications, Inc.                        Common Stock    1,000 shares owned by Frontier Communications of DePue, Inc.

Frontier Communications of Illinois, Inc.         Common Stock    26,313 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Indiana, Inc.          Common Stock    3,000 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Iowa, Inc.             Common Stock    100 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Lakeside, Inc.         Common Stock    53,000 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications - Midland, Inc.           Common Stock    36,447.5 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Mt. Pulaski, Inc.      Common Stock    340 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications - Prairie, Inc.           Common Stock    67,800 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications - Schuyler, Inc.          Common Stock    5,000 shares owned by Frontier Subsidiary Telco Inc.

Schuyler Cellular, Inc.                           Common Stock    100 shares owned by Frontier Communications - Schuyler, Inc.

Frontier Communications of Thorntown, Inc.        Common Stock    9,483 shares owned by Frontier Subsidiary Telco Inc.

Frontier Cable of Indiana, Inc.                   Common Stock    343 shares owned by Frontier Communications of Thorntown, Inc.

Frontier Communications of Alabama, Inc.          Common Stock    1,299 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Fairmount, Inc.        Common Stock    10,405 shares owned by Frontier Subsidiary Telco Inc.

Fairmount Cellular, Inc.                          Common Stock    100 shares owned by Frontier Communications of Fairmount, Inc.

Frontier Communications of Georgia, Inc.          Common Stock    3,600 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Lamar County, Inc.     Common Stock    250 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Mississippi, Inc.      Common Stock    1,743.5 shares owned by Frontier Subsidiary Telco Inc.

Frontier Cable of Mississippi, Inc.               Common Stock    1,000 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of the South, Inc.        Common Stock    5,000 shares owned by Frontier Subsidiary Telco Inc.

Frontier Cellular of Alabama, Inc.                Common Stock    250 shares owned by Frontier Communications of the South, Inc.
                                                                  166 shares owned by Frontier Communications of Alabama, Inc.
                                                                   84 shares owned by Frontier Communications of Lamar County, Inc.

Frontier Communications of Breezewood, Inc.       Common Stock    1,000 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Canton, Inc.           Common Stock    1,980 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Lakewood, Inc.         Common Stock    5,080 shares owned by Frontier Communications of Canton, Inc.

Frontier Communications of Oswayo River, Inc.     Common Stock    3,623 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Pennsylvania, Inc.     Common Stock    120,000 shares owned by Frontier Subsidiary Telco Inc.

Frontier InfoServices, Inc.                       Common Stock    100 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of America, Inc.          Common Stock    200 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Michigan, Inc.         Common Stock    1,621,850 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Minnesota, Inc.        Common Stock    100 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Mondovi, Inc.          Common Stock    1,365 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Orion, Inc.            Common Stock    100 shares owned by Frontier Subsidiary Telco Inc.

O.T. Cellular Telephone Company                   Common Stock    100 shares owned by Frontier Communications of Orion, Inc.

Frontier Communications - St. Croix, Inc.         Common Stock    119,520 shares owned by Frontier Subsidiary Telco Inc.

Frontier Cable of Wisconsin, Inc.                 Common Stock    1,635 shares owned by Frontier Communications - St. Croix, Inc.

Frontier Communications of Viroqua, Inc.          Common Stock    8,000 shares owned by Frontier Subsidiary Telco Inc.

Frontier Communications of Wisconsin, Inc.        Common Stock    1,233,935 shares owned by Frontier Subsidiary Telco Inc.
</TABLE>
<PAGE>

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