Document:

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                                                                     EXHIBIT 10a

                                                     [VERIZON LOGO]

                                                     1095 Avenue of the Americas
                                                     New York, NY 10036

November 2, 2000

Lawrence T. Babbio, Jr.
[Address]
[Address]

Dear Larry:

         We are pleased to offer you this employment agreement (the "Agreement")
with Verizon Communications Inc. ("Verizon"). For purposes of this Agreement,
the term "Company" means Verizon, all corporate subsidiaries and other companies
affiliated with Verizon, all companies in which Verizon has an ownership or
other proprietary interest of more than 10 percent, and their successors and
assigns.

         The opportunities and challenges facing the Company are enormous and
exciting. Both as a new organization and as a vigorous competitor in the most
dynamic and innovative industry in history, the Company needs extraordinarily
talented and committed leaders. This Agreement and the valuable array of
wealth-creation opportunities it provides reflect our view that you meet this
high standard.

         We value you and the leadership, vision, and commitment you bring to
the Company. We are excited by the prospect of having you as a key member of our
leadership team. We look forward to working with you as we chart the course of
our new organization at the beginning of a new century.

         The terms and conditions of this Agreement are set forth below.

         1. PURPOSE - Verizon enters into this Agreement with you because the
rapidly-changing and increasingly global telecommunications market and the
recent Bell Atlantic - GTE merger (the "Merger") require the Company to make
critical strategic, marketing, and technical decisions. These decisions by the
Company will be based, in whole or in part, on confidential analyses of the
evolving telecommunications market, confidential assessments of the technical
capabilities and strategic plans of the Company and competing businesses, and
confidential or proprietary information regarding the Company's technology,
resources, and business opportunities or other confidential or proprietary
information relating to the Company's business. Verizon seeks by this Agreement
to ensure that you remain a

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part of the executive management team that plays a central role in this
decision-making process.

         In consideration for your entering into this Agreement, including the
restrictions on the disclosure and use of confidential or proprietary
information and the limitations on your engaging in competitive activities, the
Company is providing you with the security of an agreement with an initial term
of three years, short- and long-term award opportunities, and other benefits.

         2. GENERAL - Under this Agreement, you shall continue as Vice-Chairman
- Verizon and President - Telecom. As Vice-Chairman and President, you shall
report to the Chief Executive Officers (or, if only one person holds that
position, the Chief Executive Officer) of Verizon (the "CEO(s)").

         3. TERM - The term of employment under this Agreement ("Term of
Employment") shall commence on July 1, 2000, and end on June 30, 2003; provided
that commencing on July 1, 2001, and on each day thereafter, the remaining Term
of Employment shall be two years. For example, on August 1, 2001, the Term of
Employment shall end on July 31, 2003. Notwithstanding the preceding provisions
of this paragraph 3, the Company reserves the right to terminate your employment
and the Term of Employment at any time. Your employment and the Term of
Employment also may terminate for other reasons (such as your resignation,
retirement, death, or disability). The consequences of the termination of your
employment are specified in paragraph 13 ("Termination Of Employment").

         4. DUTIES AND RESPONSIBILITIES - Subject to the provisions of paragraph
13(d) ("Termination For Good Reason"), you shall serve as Vice-Chairman -
Verizon and President - Telecom, and you shall perform all duties incidental to
such positions, shall cooperate fully with the CEO(s) or his/their successor,
and shall work cooperatively with the other officers of the Company. You shall
continue to devote your entire business skill, time, and effort diligently to
the affairs of the Company in accordance with the duties assigned to you, and
you shall perform all such duties, and otherwise conduct yourself, in a manner
reasonably calculated in good faith by you to promote the best interests of the
Company. During the Term of Employment, except to the extent specifically
permitted in writing by the CEO(s) or his/their successor, and except for
memberships on boards of directors that you hold on the date of this Agreement,
you shall not, directly or indirectly, render any services of a business,
commercial, or professional nature to any other person or organization other
than the Company or a person or organization in which the

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Company has a financial interest, whether or not the services are rendered for
compensation.

         5. LOCATION - During the Term of Employment, you shall perform services
for the Company at its New York City headquarters, or at any other location
designated by the Company as necessary or appropriate for the discharge of your
responsibilities under this Agreement. In the event of any change in your
principal work location, you shall be eligible for relocation assistance under
the terms of any Company relocation policy applicable to other senior executives
of the Company at the time of such relocation. In addition, a change in your
principal work location could qualify as a "Good Reason" in accordance with
paragraph (3) of Exhibit D hereto.

         6. BASE SALARY - During the Term of Employment, your annual base salary
shall not be less than $1,000,000 per year. After this Agreement has been in
effect for 18 months, the Human Resources Committee of Verizon's Board of
Directors or its designee shall review your base salary at least annually.

         7. BONUS OPPORTUNITIES - During the Term of Employment, the Company
shall provide you with annual short-term and long-term bonus opportunities. Your
annual short-term bonus opportunity shall be prorated for the year 2000 to
reflect the six-month duration of the Agreement during 2000, and your annual
long-term bonus opportunity shall become effective beginning in 2001. Your
annual short-term bonus opportunity shall not be less than 100 percent of your
then-current base salary, and your annual maximum short-term bonus opportunity
shall not be less than 200 percent of your then-current base salary. The value
of your annual long-term bonus opportunity shall not be less than 500 percent of
your then-current base salary. In addition, if you remain in the continuous
employ of the Company until June 30, 2001, you shall be entitled to a retention
bonus equal to the sum of 100 percent of your base salary for 2001, 50 percent
of your maximum short-term bonus opportunity for 2001, and 100 percent of your
long-term bonus opportunity for 2001. If your long-term bonus opportunity is
subject to a performance target, it shall be assumed for purposes of the
retention bonus that the performance target is met. If you become entitled to
the retention bonus, the retention bonus shall be paid to you in July 2001
unless you elect to defer receipt of all or part of the retention bonus in
accordance with the provisions of paragraph 31 ("Deferrals").

         8. FOUNDERS' GRANT - You shall receive a Founders' Grant of options to
purchase 450,000 shares of Verizon common stock. The Founders' Grant is
contingent on your timely execution of this Agreement. The terms of the
Founders' Grant are set forth in the instrument governing the Founders' Grant
attached hereto

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as Exhibit A, which is incorporated herein by reference. Your rights under the
Founders' Grant following the termination of your employment shall be governed
by paragraph 13 ("Termination Of Employment") and by said Exhibit A. If you do
not timely execute this Agreement, you shall not receive the Founders' Grant.

         9. PERFORMANCE SHARE RETENTION UNIT GRANT - You shall receive a
Performance Share Retention Unit Grant with respect to 100,000 shares of Verizon
common stock. The Performance Share Retention Unit Grant is contingent on your
timely execution of this Agreement. The terms of the Performance Share Retention
Unit Grant are set forth in the Performance Share Retention Unit Grant Agreement
attached hereto as Exhibit B, which is incorporated herein by reference. Your
rights under the Performance Share Retention Grant following the termination of
your employment shall be governed by paragraph 13 ("Termination Of Employment")
and by the terms of such Performance Share Retention Unit Grant Agreement. If
you do not timely execute this Agreement, you shall not receive the Performance
Share Retention Unit Grant.

         10. BENEFITS AND PERQUISITES - (a) IN GENERAL - For the immediate
future, you shall-

                  (1)      participate in the tax-qualified and nonqualified
                           retirement plans in which you currently participate
                           (including but not limited to the Bell Atlantic
                           Senior Management Income Deferral Plan (the "IDP"));

                  (2)      be eligible for the perquisites identified in
                           subparagraph (b), below; and

                  (3)      participate in the other employee benefit plans,
                           programs, and policies in which you currently
                           participate, including medical, dental, and life
                           insurance plans;

provided that the Company retains the right to amend or terminate any benefit
plan, policy, program, or perquisite either as part of the process of providing
uniform retirement benefits to former Bell Atlantic and GTE employees or in the
normal course of business. In any event, with regard to the benefits described
in subparagraphs (b)(1) ("Flexible Spending Account") through (b)(9)
("Apartment"), below, you shall be eligible for such benefits on terms and
conditions that are (1) until June 30, 2003 (or, if earlier, until the end of
the Term of Employment), at least as favorable to you as the terms and
conditions on which you are eligible for each of those benefits at the time you
execute this Agreement, and (2) from July 1, 2003,

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through the end of the Term of Employment, at least as favorable to you as the
terms and conditions on which those benefits are provided to other senior
executives in your peer group.

                  (b) PERQUISITES - The perquisites referred to in subparagraph
(a), above, are the following:

                           (1)      FLEXIBLE SPENDING ACCOUNT: A flexible
                                    spending account of $31,000 per year shall
                                    be available for such items as club
                                    initiation fees, club memberships, and
                                    automobile payments. The available balance
                                    in the account shall be allocated to you in
                                    monthly installments.

                           (2)      FINANCIAL PLANNING: You shall be eligible
                                    for the Company's financial planning and
                                    services program. If you are already using a
                                    vendor other than the vendor used by the
                                    Company's financial planning and services
                                    program, and you wish to continue using that
                                    other vendor, your are eligible for
                                    reimbursement of the cost of using that
                                    other vendor up to an annual maximum of
                                    $9,000.

                           (3)      COMPANY AIRCRAFT: You shall be eligible to
                                    use Company aircraft for business and
                                    personal travel, subject to the availability
                                    of the aircraft.

                           (4)      FIRST-CLASS AIR TRAVEL: When Company
                                    aircraft are not available for business
                                    travel, you shall be eligible for
                                    first-class commercial air travel.

                           (5)      COMPANY AUTOMOBILE: You shall be eligible to
                                    use a Company automobile and driver for
                                    business and personal travel.

                           (6)      HOME SECURITY: You shall be eligible for
                                    home security on an as-needed basis,
                                    consistent with Company policy as in effect
                                    from time to time.

                           (7)      HOME OFFICE EQUIPMENT: You shall be eligible
                                    for home office equipment (e.g., computer,
                                    fax machine, business line with long
                                    distance, and internet access)

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                                    on an as-needed basis, consistent with
                                    Company policy as in effect from time to
                                    time.

                           (8)      CELLULAR TELEPHONE: You shall be provided
                                    with cellular telephone equipment and
                                    service.

                           (9)      APARTMENT: You shall continue to be provided
                                    with your current apartment (or a similar
                                    apartment) in New York City.

                  (c) PRIOR AWARDS - You shall be entitled to vest in, and to
receive benefits under, all outstanding awards previously granted to you by the
Company in accordance with the terms of such awards; provided that the phantom
share award (for 140,000 phantom shares after adjustment to reflect the
two-for-one stock split in June of 1998) made to you in accordance with your
employment agreement with Bell Atlantic, dated June 1, 1998, including all gains
(and phantom dividends) thereon, shall be immediately vested and shall be paid
to you in cash or in shares of Verizon common stock in January 2001 unless you
elect to defer receipt of all or part of such phantom share award in accordance
with the provisions of paragraph 31 ("Deferrals"). In addition, if your
employment with the Company continues until December 31, 2001, the Company shall
credit, as of December 31, 2001, an amount equal to your Potential Interim
Amount ("PIA") as of December 31, 2001, to the retirement contribution
sub-account contained within your account under the IDP. This credit shall be in
addition to the amount credited pursuant to paragraph 4 ("IDP Credit") of your
employment agreement with Bell Atlantic, dated June 1, 1998, and shall be in
complete satisfaction of, and shall fully discharge, any right or entitlement
that you may have, now or in the future, to a PIA under the IDP or any other
benefit plan maintained by the Company.

         11. ANNUAL PHYSICAL - You are encouraged to take an annual physical
examination from a physician at the Company's expense and to certify in writing
to the Company's designee each year (a) that you have had the examination and
(b) the nature and extent of any medical impairments that prevent you from
currently performing the essential functions of your position.

         12. EXCISE TAX GROSS-UP - Under certain circumstances you may become
entitled to a gross-up payment with respect to the excise tax imposed by section
4999 of the Internal Revenue Code (the "Code"). The terms governing the gross-up
payment are set forth in Exhibit C, which is incorporated herein by reference.

         13. TERMINATION OF EMPLOYMENT - (a) VOLUNTARY TERMINATION BY YOU -
Since you are currently eligible to retire, the consequences of any voluntary

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termination of employment by you shall be governed by paragraph 13(c)
("Retirement"), except as otherwise provided in paragraph 13(d) ("Termination
For Good Reason").

                  (b) TERMINATION DUE TO DEATH OR DISABILITY - If, during the
Term of Employment, you terminate employment because of death or disability (as
defined under the Company-sponsored long-term disability plan or plans that
apply to you at the time your employment is so terminated),

                           (1)      The Company shall make a lump-sum cash
                                    payment to you equal to your base salary, 50
                                    percent (or, if greater, the percentage of
                                    your maximum short-term bonus opportunity
                                    awarded for the year immediately preceding
                                    the year in which your employment
                                    terminates) of your maximum short-term bonus
                                    opportunity, and 100 percent of your
                                    long-term bonus opportunity for the
                                    remaining Term of Employment (as the Term of
                                    Employment is determined as of the date
                                    immediately preceding the date your
                                    employment terminates), reduced by any
                                    amounts payable to you under any
                                    Company-sponsored disability plan (excluding
                                    any amounts payable to you under any
                                    Company-sponsored deferred compensation
                                    plan, such as the IDP) during the remaining
                                    Term of Employment (as the Term of
                                    Employment is determined as of the date
                                    immediately preceding the date your
                                    employment terminates). For this purpose,
                                    your base salary shall be based on your base
                                    salary rate in effect immediately before
                                    your employment terminated; your annual
                                    maximum short-term bonus opportunity shall
                                    be equal to 200 percent of your annual base
                                    salary in effect immediately before your
                                    employment terminated; and your annual
                                    long-term bonus opportunity shall be equal
                                    to 500 percent of your annual base salary in
                                    effect immediately before your employment
                                    terminated. If your long-term bonus is
                                    subject to a performance target, it shall be
                                    assumed that the target is met;

                           (2)      Unless the retention bonus prescribed by
                                    paragraph 7 ("Bonus Opportunities") has
                                    already been paid to you (or deferred
                                    pursuant to your election to defer such

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                                    payment), you shall receive a lump-sum
                                    payment equal to such retention bonus;

                           (3)      Your unvested stock options shall
                                    immediately vest, and you may exercise all
                                    then-outstanding stock options at any time
                                    up to the earlier of (i) the latest of (A)
                                    the fifth anniversary of the date your
                                    employment terminates, (B) June 1, 2008, or
                                    (C) any later date prescribed by the terms
                                    of the option relating to termination of
                                    employment or (ii) the expiration of the
                                    option;

                           (4)      Your unvested Performance Share Retention
                                    Units shall vest to the extent prescribed by
                                    the provisions of paragraph 8(d) of Exhibit
                                    B hereto;

                           (5)      If your employment is terminated before
                                    December 31, 2001, the amount to be credited
                                    to the retirement contribution sub-account
                                    within your account under the IDP in
                                    accordance with paragraph 10(c) ("Prior
                                    Awards") shall be credited on December 31,
                                    2001, as though your employment had not
                                    terminated;

                           (6)      If your employment is terminated before June
                                    1, 2003, then until June 1, 2003, (i)
                                    retirement contribution credits shall
                                    continue to be made to your retirement
                                    contribution sub-account within your account
                                    under the IDP in accordance with Section
                                    5(b) of the IDP, which credits shall be
                                    based on your base salary for the period
                                    following the termination of your employment
                                    and up to June 1, 2003, and on 50 percent
                                    (or, if greater, the percentage of your
                                    maximum short-term bonus opportunity awarded
                                    for the year preceding the year in which
                                    your employment terminates) of your maximum
                                    short-term bonus opportunity for such
                                    period, and (ii) to the extent permitted by
                                    the IDP, matching contribution credits shall
                                    continue to be made to your matching
                                    contribution sub-account for such period in
                                    accordance with Section 5(a) of the IDP,
                                    based on your eligible deferrals (if any)
                                    under the IDP; and

                           (7)      If your employment is terminated before June
                                    1, 2003, the Company shall credit to your
                                    retirement contribution

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Page 9

                           sub-account within your account under the IDP an
                           amount equal to the sum of the credits that you
                           otherwise would have been eligible to receive during
                           the period following the termination of your
                           employment and up to June 1, 2003, as (i) Company
                           matching contributions under the Bell Atlantic
                           Savings Plan or any successor to that plan (if you
                           had fully participated in contributions to that plan)
                           and (ii) pay credits under the Bell Atlantic Cash
                           Balance Plan or any successor to that plan;

provided that if you terminate employment because of death, your rights under
this subparagraph (b) shall pass to your estate or a beneficiary that you have
designated in writing (and in a form and manner acceptable to the Company)
before your death.

                  (c) RETIREMENT - If, during the Term of Employment, you
terminate employment by reason of Retirement (as defined below), except as
otherwise provided in subparagraph (g) ("Mandatory Retirement"), you shall be
entitled to accelerated vesting of all outstanding stock options (other than the
Founders' Grant), and to exercise all then-outstanding stock options (excluding
nonvested Founders' Grant options) until the earlier of (1) the fifth
anniversary of the date your employment terminates (or any later date prescribed
by the terms of the option relating to termination of employment) or (2) the
expiration of the option. For purposes of this Agreement, "Retirement" means
retirement under the terms of the Verizon Communications 2000 Broad-Based
Incentive Plan. Except as provided by the preceding provisions of this
subparagraph (c), upon the effective date of your Retirement, your base salary
and any other Company benefits and perquisites shall cease to accrue; provided
that you shall otherwise be eligible to receive any and all compensation and
benefits for which a similarly situated senior executive would be eligible under
the applicable provisions of the compensation and benefit plans in which he is
then eligible to participate, as those plans may be amended from time to time.

                  (d) TERMINATION FOR GOOD REASON - (1) Subject to the
provisions of subparagraph (d)(4), below, you may terminate your employment
under this Agreement for Good Reason by giving the CEO(s) 30 calendar days'
(exclusive of vacation days) written notice of your intent to so terminate,
setting forth in reasonable detail the facts and circumstances deemed to provide
a basis for such termination. For purposes of this Agreement, "Good Reason" has
the meaning prescribed by Exhibit D, which is incorporated herein by reference.

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                           (2) Notwithstanding the foregoing, and subject to the
provisions of subparagraph (d)(4), below, the Company shall have 15 calendar
days from its receipt of such notice to cure the action specified in the notice.
In the event of a cure by the Company within the 15-day period, the action in
question shall not constitute Good Reason.

                           (3) Except as provided in subparagraph (d)(2), above,
and (d)(4), below, upon the lapse of the 30 calendar days' notice period, the
Good Reason termination shall take effect, and your obligation to serve the
Company, and the Company's obligation to employ you, under the terms of this
Agreement shall terminate simultaneously, and you shall be deemed to have
incurred an Involuntary Termination Without Cause, with the consequences
described in subparagraph (e), below; provided that your rights under this
subparagraph (d) (other than those specified in paragraph 13(e)(3) and (4)) are
contingent on your execution of a release in accordance with paragraph 14
("Release").

                           (4) If you do not fulfill the notice and explanation
requirements imposed by this subparagraph (d), the resulting termination of
employment shall be deemed a Retirement; provided that if the Good Reason occurs
by reason of paragraph (7) of Exhibit D, (i) you shall not be required to
fulfill such notice and explanation requirements, (ii) subparagraph (d)(2),
above, shall not apply to you, and (iii) notwithstanding subparagraph (d)(3),
above, Good Reason shall occur immediately (and your obligation to serve the
Company and the Company's obligation to employ you shall terminate
simultaneously) and without regard to the expiration of the 30 calendar days'
notice period.

                  (e) INVOLUNTARY TERMINATION WITHOUT CAUSE - The Company may
terminate your employment under this Agreement at any time and for any reason.
However, if the Company terminates your employment for any reason other than
Cause (as defined in subparagraph (f), below), such termination shall be deemed
an Involuntary Termination by the Company, and you shall be entitled to receive
the following payments and benefits in lieu of any payment or benefit otherwise
provided pursuant to paragraphs 6 ("Base Salary") through 11 ("Annual
Physical"):

                           (1)      The Company shall make a lump-sum cash
                                    payment to you equal to your base salary, 50
                                    percent (or, if greater, the percentage of
                                    your maximum short-term bonus opportunity
                                    awarded for the year immediately preceding
                                    the year in which your employment
                                    terminates) of your maximum short-term bonus
                                    opportunity, and 100 percent of your
                                    long-term bonus opportunity for the

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                                    remaining Term of Employment (as the Term of
                                    Employment is determined as of the date
                                    immediately preceding the date your
                                    employment terminates), reduced by any
                                    amounts payable to you under any
                                    Company-sponsored severance plan, program,
                                    policy, contract, account, or arrangement
                                    (excluding any amounts payable to you under
                                    any Company-sponsored deferred compensation
                                    plan, such as the IDP) during the remaining
                                    Term of Employment (as the Term of
                                    Employment is determined as of the date
                                    immediately preceding the date your
                                    employment terminates). For this purpose,
                                    your base salary shall be based on your base
                                    salary rate in effect immediately before
                                    your employment terminated; your annual
                                    maximum short-term bonus opportunity shall
                                    be equal to 200 percent of your annual base
                                    salary in effect immediately before your
                                    employment terminated; and your annual
                                    long-term bonus opportunity shall be equal
                                    to 500 percent of your annual base salary in
                                    effect immediately before your employment
                                    terminated. If your long-term bonus is
                                    subject to a performance target, it shall be
                                    assumed for this purpose that the target is
                                    met;

                           (2)      Unless the retention bonus prescribed by
                                    paragraph 7 ("Bonus Opportunities") has
                                    already been paid to you (or deferred
                                    pursuant to your election to defer such
                                    payment), you shall receive a lump-sum
                                    payment equal to such retention bonus;

                           (3)      Your unvested stock options, including the
                                    Founders' Grant, shall immediately vest, and
                                    you may exercise all of your
                                    then-outstanding stock options at any time
                                    up to the earlier of (i) the latest of (A)
                                    the fifth anniversary of the date your
                                    employment terminates, (B) June 1, 2008, or
                                    (C) any later date prescribed by the terms
                                    of the option relating to termination of
                                    employment) or (ii) the expiration of the
                                    option;

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                           (4)      Your Performance Share Retention Units shall
                                    vest to the extent prescribed by the
                                    provisions of paragraph 8(b) of Exhibit B
                                    hereto;

                           (5)      If your employment is terminated before
                                    December 31, 2001, the amount to be credited
                                    to the retirement contribution sub-account
                                    within your account under the IDP in
                                    accordance with paragraph 10(c) ("Prior
                                    Awards") shall be credited on December 31,
                                    2001, as though your employment had not
                                    terminated;

                           (6)      If your employment is terminated before June
                                    1, 2003, then until June 1, 2003, (i)
                                    retirement contribution credits shall
                                    continue to be made to your retirement
                                    contribution sub-account within your account
                                    under the IDP in accordance with Section
                                    5(b) of the IDP, which credits shall be
                                    based on your base salary for the period
                                    following the termination of your employment
                                    and up to June 1, 2003, and on 50 percent
                                    (or, if greater, the percentage of your
                                    maximum short-term bonus opportunity awarded
                                    for the year preceding the year in which
                                    your employment terminates) of your maximum
                                    short-term bonus opportunity for such
                                    period, and (ii) to the extent permitted by
                                    the IDP, matching contribution credits shall
                                    continue to be made to your matching
                                    contribution sub-account for such period in
                                    accordance with Section 5(a) of the IDP,
                                    based on your eligible deferrals (if any)
                                    under the IDP;

                           (7)      If your employment is terminated before June
                                    1, 2003, the Company shall credit to your
                                    retirement contribution sub-account within
                                    your account under the IDP an amount equal
                                    to the sum of the credits that you otherwise
                                    would have been eligible to receive during
                                    the period following the termination of your
                                    employment and up to June 1, 2003, as (i)
                                    Company matching contributions under the
                                    Bell Atlantic Savings Plan or any successor
                                    to that plan (if you had fully participated
                                    in contributions to that plan) and (ii) pay
                                    credits under the Bell Atlantic Cash Balance
                                    Plan or any successor to that plan;

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                           (8)      You shall be eligible for outplacement
                                    services to the extent that such services
                                    are then available to senior executives of
                                    the Company;

                           (9)      The Company shall provide continued benefits
                                    under the Bell Atlantic Senior Management
                                    Estate Management Program (the
                                    "split-dollar" insurance program) applicable
                                    to a retiring participating senior manager;
                                    and

                           (10)     For the remaining Term of Employment
                                    (determined as of the date immediately
                                    preceding the date your employment
                                    terminates), you shall be eligible to use
                                    Company aircraft for personal travel,
                                    subject to the availability of the aircraft,
                                    and you shall continue to be provided with
                                    your current apartment in New York City (and
                                    any related tax gross-up) in accordance with
                                    paragraph 10(b)(3) ("Company Aircraft") and
                                    (b)(9) ("Apartment") and paragraph 22
                                    ("Taxes");

provided that your rights under this subparagraph (e) (other than those
specified in clauses (3) and (4), above) are contingent on your execution of a
release in accordance with paragraph 14 ("Release").

                  (f) INVOLUNTARY TERMINATION FOR CAUSE - (1) Nothing in this
Agreement prevents the Company from terminating your employment under this
Agreement for Cause. In the event of your termination for Cause, the Company
shall pay you your full accrued base salary and accrued vacation time through
the date of your termination, and the Company shall have no further obligations
under this Agreement; provided that you shall otherwise be eligible to receive
any and all compensation and benefits for which a similarly situated senior
executive would be eligible under the applicable provisions of the compensation
and benefit plans in which he is then eligible to participate, as those plans
may be amended from time to time.

                           (2) For purposes of this Agreement, "Cause" is
defined as (i) grossly incompetent performance or substantial or continuing
inattention to or neglect of the duties and responsibilities assigned to you;
fraud, misappropriation or embezzlement involving the Company or a material
breach of any provision incorporated in paragraph 15 ("Covenants"), as
determined by the CEO(s) in his/their reasonable discretion, or (ii) commission
of any felony of which you are finally adjudged guilty by a court of competent
jurisdiction.

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Page 14

                           (3) If the Company terminates your employment for
Cause, the Company shall provide you with a written statement of the grounds for
such termination within 10 business days after the date of termination.

                  (g) MANDATORY RETIREMENT - If you retire at or after age 65
because you are required to do so by the Company's mandatory retirement policy,
your retirement shall not be deemed an Involuntary Termination by the Company
for purposes of this Agreement, your unvested stock options shall immediately
vest, and you may exercise all of your then-outstanding stock options at any
time up to the earlier of (i) the fifth anniversary of the date your employment
terminates (or any later date prescribed by the terms of the option relating to
termination of employment) or (ii) the expiration of the option.

         14. RELEASE - You shall not be entitled to any benefits under this
Agreement following the termination of your employment unless, at the time your
employment terminates and to the extent required by this Agreement, you execute
a release satisfactory to the Company releasing the Company, its affiliates,
shareholders, directors, officers, employees, representatives, and agents and
their successors and assigns from any and all employment-related claims you or
your successors and beneficiaries might then have against them (excluding any
claims you might then have under this Agreement (including the Exhibits hereto),
the IDP, or any employee benefit plan that is subject to the vesting standards
imposed by the Employee Retirement Income Security Act of 1974, as amended).
This paragraph 14 shall not apply if your employment is terminated by reason of
your death, disability, or Retirement.

         15. COVENANTS - In consideration for the benefits and agreements
described above, you agree to comply with the covenants set forth in Exhibit E
hereto, which is incorporated herein by reference.

         16. REQUEST FOR WAIVER - Nothing in this Agreement bars you from
requesting, at the time of your termination of employment or at any time
thereafter, that the CEO(s), in his/their sole discretion, waive in writing the
Company's rights to enforce some or all of the provisions incorporated in
paragraph 15 ("Covenants").

         17. OTHER AGREEMENTS AND POLICIES - The obligations imposed on you by
paragraph 15 ("Covenants") are in addition to, and not in lieu of, any and all
other policies and agreements of the Company regarding the subject matter of the
foregoing obligations.

         18. NONDUPLICATION OF BENEFITS - No provision of this Agreement shall
require the Company to provide you with any payment, benefit, or grant that

<PAGE>   15
Lawrence T. Babbio, Jr.
November 2, 2000
Page 15

duplicates any payment, benefit, or grant that you are entitled to receive under
any Company compensation or benefit plan, award agreement, or other arrangement.

         19. OTHER COMPANY PLANS - Except to the extent otherwise explicitly
provided by this Agreement, any awards made to you under any Company
compensation or benefit plan or program shall be governed by the terms of that
plan or program and any applicable award agreement thereunder as in effect from
time to time. Notwithstanding the foregoing, you shall not be entitled to
participate in any Company compensation or benefit plan that is established
after your employment with the Company terminates, and except as specifically
provided in this Agreement, you shall not be entitled to any additional grants
or awards under any Company compensation or benefit plan after your employment
with the Company terminates. The amounts paid, provided, or credited under this
Agreement shall not be treated as compensation for purposes of determining any
benefits payable under any Company-sponsored pension, savings, life insurance,
or other employee benefit plan except to the extent provided by the terms of
such plan.

         20. FORFEITURE - (a) If you breach any of the obligations incorporated
in paragraph 15 ("Covenants"), or engage in serious misconduct during the Term
of Employment that is contrary to written policies of the Company and is harmful
to the Company or its reputation, you shall forfeit (1) any balance in the
retirement contribution sub-account contained within your account in the IDP or
any successor thereto and (2) any unpaid incentive compensation that you are
otherwise entitled to receive.

                  (b) The remedies available under this paragraph are in
addition to, and not in lieu of, the remedies available under paragraph 27
("Additional Remedies").

         21. NO DEEMED WAIVER - Failure to insist upon strict compliance with
any of the terms, covenants, or conditions of this Agreement shall not be deemed
a waiver of such term, covenant, or condition, nor shall any waiver or
relinquishment of any right or power hereunder at any one or more times be
deemed a waiver or relinquishment of such right or power at any other time or
times.

         22. TAXES - The Company may withhold from any benefits payable under
this Agreement all taxes that the Company reasonably determines to be required
pursuant to any law, regulation, or ruling. However, it is your obligation to
pay all required taxes on any amounts and benefits provided under this
Agreement, including the benefits provided to you pursuant to paragraph 10(b)
("Perquisites"), regardless of whether withholding is required; provided that if
you recognize income for income tax purposes as a result of the use of an
apartment in accordance with

<PAGE>   16
Lawrence T. Babbio, Jr.
November 2, 2000
Page 16

paragraph 10(b)(9) ("Apartment"), regardless of whether you recognize such
income before or after your employment terminates, the Company shall make a tax
gross-up payment to you based on the additional tax liability that you incur by
reason of your recognition of such income.

         23. CONFIDENTIALITY - You shall not disclose, in whole or in part, any
of the terms of this Agreement except to the extent (a) otherwise required by
law or (b) the Company has publicly disclosed the terms of this Agreement. This
paragraph 23 does not prevent you from disclosing the terms of this Agreement to
any future spouse or to your legal, tax, or financial adviser, provided that you
take all reasonable measures to assure that he or she does not disclose the
terms of this Agreement to a third party except as otherwise required by law.

         24. GOVERNING LAW - To the extent not preempted by federal law, the
provisions of this Agreement shall be construed and enforced in accordance with
the laws of the State of New York, excluding any conflicts or choice of law rule
or principle that might otherwise refer construction or interpretation of this
provision to the substantive law of another jurisdiction.

         25. ASSIGNMENT - The obligations of Verizon hereunder shall be the
obligations of any and all successors and assigns of Verizon. Verizon may assign
this Agreement without your consent to any company that acquires all or
substantially all of the stock or assets of Verizon, or into which or with which
Verizon is merged or consolidated. You may not assign this Agreement, and no
person other than you (or your estate) may assert your rights under this
Agreement.

         26. SEVERABILITY - The agreements contained herein and within the
release prescribed by paragraph 14 ("Release") shall each constitute a separate
agreement independently supported by good and adequate consideration, and shall
each be severable from the other provisions of the Agreement and such release.
If an arbitrator or court of competent jurisdiction determines that any term,
provision, or portion of this Agreement or such release is void, illegal, or
unenforceable, the other terms, provisions, and portions of this Agreement or
such release shall remain in full force and effect, and the terms, provisions,
and portions that are determined to be void, illegal, or unenforceable shall
either be limited so that they shall remain in effect to the extent permissible
by law, or such arbitrator or court shall substitute, to the extent enforceable,
provisions similar thereto or other provisions, so as to provide to the Company,
to the fullest extent permitted by applicable law, the benefits intended by this
Agreement and such release.

<PAGE>   17
Lawrence T. Babbio, Jr.
November 2, 2000
Page 17

         27. ADDITIONAL REMEDIES - In addition to any other rights or remedies,
whether legal, equitable, or otherwise, that each of the parties to this
Agreement may have, you acknowledge that

                  (a)      The covenants incorporated in paragraph 15
                           ("Covenants") are essential to the continued good
                           will and profitability of the Company;

                  (b)      You have broad-based skills that will serve as the
                           basis for employment opportunities that are not
                           prohibited by the covenants incorporated in paragraph
                           15 ("Covenants");

                  (c)      When your employment with the Company terminates, you
                           shall be able to earn a livelihood without violating
                           any of the terms of this Agreement;

                  (d)      Irreparable damage to the Company shall result in the
                           event that the covenants incorporated in paragraph 15
                           ("Covenants") are not specifically enforced and that
                           monetary damages will not adequately protect the
                           Company from a breach of these paragraphs of the
                           Agreement;

                  (e)      If any dispute arises concerning the violation by you
                           of the covenants incorporated in paragraph 15
                           ("Covenants"), an injunction may be issued
                           restraining such violation pending the determination
                           of such controversy, and no bond or other security
                           shall be required in connection therewith;

                  (f)      Such covenants shall continue to apply after any
                           expiration, termination, or cancellation of this
                           Agreement; and

                  (g)      Your material breach of any of such covenants shall
                           result in your immediate forfeiture of all rights
                           under this Agreement to the extent provided herein.

         28. SURVIVAL - The provisions of paragraphs 15 ("Covenants") through 30
("Entire Agreement") shall survive the Term of Employment. Any obligations that
the Company has incurred under this Agreement to provide benefits that have
vested under the terms of this Agreement shall likewise survive the Term of
Employment.

<PAGE>   18
Lawrence T. Babbio, Jr.
November 2, 2000
Page 18

         29. ARBITRATION - Any dispute arising out of or relating to this
Agreement (except any dispute arising out of or relating to paragraph 15
("Covenants")), and any dispute arising out of or relating to your employment,
shall be settled by final and binding arbitration, which shall be the exclusive
means of resolving any such dispute, and the parties specifically waive all
rights to pursue any other remedy, recourse, or relief. With respect to disputes
by the Company arising out of or relating to paragraph 15 ("Covenants"), the
Company has retained all its rights to legal and equitable recourse and relief,
including but not limited to injunctive relief, as referred to in paragraph 27
("Additional Remedies"). The arbitration shall be expedited and conducted in the
State of New York pursuant to the Center for Public Resources ("CPR") Rules for
Non-Administered Arbitration in effect at the time of notice of the dispute
before one neutral arbitrator appointed by CPR from the CPR Panel of neutrals
unless the parties mutually agree to the appointment of a different neutral
arbitrator. The arbitration shall be governed by the Federal Arbitration Act, 9
U.S.C. sections 1-16, and judgment upon the award rendered by the arbitrator may
be entered by any court having jurisdiction. The finding of the arbitrator may
not change the express terms of this Agreement and shall be consistent with the
arbitrator's understanding of the findings a court of proper jurisdiction would
make in applying the applicable law to the facts underlying the dispute. In no
event whatsoever shall such an arbitration award include any award of damages
other than the amounts in controversy under this Agreement. The parties waive
the right to recover, in such arbitration, punitive damages. Each party hereby
agrees that New York City is the proper venue for any litigation seeking to
enforce any provision of this Agreement or to enforce any arbitration award
under this paragraph 29, and each party hereby waives any right it otherwise
might have to defend, oppose, or object to, on the basis of jurisdiction, venue,
or forum nonconveniens, a suit filed by the other party in any federal or state
court in New York City to enforce any provision of this Agreement or to enforce
any arbitration award under this paragraph 29. Each party also waives any right
it might otherwise have to seek to transfer from a federal or state court in New
York City a suit filed by the other party to enforce any provision of this
Agreement or to enforce any arbitration award under this paragraph 29.

         30. ENTIRE AGREEMENT - Except for the terms of the compensation and
benefit plans in which you participate, this Agreement, including the Exhibits
hereto, sets forth the entire understanding of you and the Company, and
supersedes all prior agreements and communications, whether oral or written,
between the Company (or Bell Atlantic or GTE or any of their respective
subsidiaries) and you regarding the subject matter of this Agreement, including
your employment agreement with Bell Atlantic, dated June 1, 1998, as
subsequently amended as of October 27, 1998, and any severance arrangement
provided under a merger

<PAGE>   19
Lawrence T. Babbio, Jr.
November 2, 2000
Page 19

agreement. This Agreement shall not be modified except by written agreement of
you and Verizon.

         31. DEFERRALS - Amounts otherwise payable to you under this Agreement
(including but not limited to any retention bonus payable to you pursuant to
paragraph 7 ("Bonus Opportunities")) may be deferred under the IDP or any
successor plan, but only if and to the extent that a valid deferral election is
in place and deferral of such amounts is permitted under the terms of the IDP or
successor plan.

Larry, we believe that this Agreement provides you and your family with both
financial security and great opportunity as our industry and the Company evolve.
We recognize that the challenges facing us are formidable and that you will be
assuming very substantial responsibilities in meeting those challenges. It is
our hope that this Agreement provides you with opportunities commensurate with
the commitment that we expect from you. Please indicate your acceptance by
signing below and returning the signed Agreement to us within ten business days
after your receipt of this Agreement.

Sincerely yours,

Charles R. Lee                 Ivan G. Seidenberg

           Co-Chief Executive Officers

cc: E. Singer

I agree to the terms described above.

-----------------------------------------------
Lawrence T. Babbio, Jr.

Attachments: Exhibit A - Founders' Grant
             Exhibit B - Performance Share Retention Unit Grant
             Exhibit C - Excise Tax Gross-Up
             Exhibit D - Good Reason
             Exhibit E - Covenants
<PAGE>   20

                                                                       EXHIBIT A

                           VERIZON COMMUNICATIONS INC.

                     FOUNDERS' GRANT STOCK OPTION AGREEMENT

         AGREEMENT between Verizon Communications Inc. ("Verizon") and the
participant identified on the attached signature page (the "Participant").

1. Purpose of Agreement. The purpose of this Agreement is to provide a one-time
grant of a stock option to the Participant in light of the merger of Bell
Atlantic Corporation and GTE Corporation and the creation of Verizon
Communications Inc. This grant shall be known as the "Founders' Grant."

2. Agreement. This Agreement is entered into pursuant to the terms of the plan
identified on the attached signature page (the "Plan") and evidences the grant
of a nonqualified stock option (the "Option") to the Participant to purchase
shares of Verizon's Common Stock ("Common Stock") pursuant to the Plan. This
Option is not an incentive stock option. The Option and this Agreement are
subject to the terms and provisions of the Plan. (The Participant may request a
copy of the Plan from the Verizon Communications Inc. Executive Compensation and
Benefits Department.) By executing this Agreement, the Participant agrees to be
bound by the terms and provisions of the Plan, by the actions of the Plan
Administrator, by the actions of the Human Resources Committee of Verizon's
Board of Directors or any successor thereto (the "Committee") or any designee of
the Committee, and by the actions of Verizon's Board of Directors pursuant to
the Plan.

3. Contingency. The Founders' Grant is contingent on the Participant's timely
execution of this Agreement and the agreement to which this Agreement is an
exhibit. If the Participant does not timely execute this Agreement and the
agreement to which this Agreement is an exhibit, the Participant shall not
receive the Founders' Grant.

4. Date. The date of the grant of the Option is specified on the attached
signature page.

5. Number of Shares. The number of shares of Common Stock as to which the option
is granted is specified on the attached signature page.

6. Option Price. The option price per share is specified on the attached
signature page.

                                                                     Exhibit A-1
<PAGE>   21
7.       (a)      Option Period and Vesting Schedule. The period for which the
                  Option is granted is until the earlier of (i) June 30, 2010,
                  or (ii) the later of (A) the fifth anniversary of the date of
                  such separation from employment or (B) if the Participant
                  separates from employment with the Company under the
                  circumstances described in subsections (b)(3) through (b)(6),
                  June 1, 2008 (the "Option Period"). In no event shall the
                  Option be exercisable after the Option Period, and the Option
                  may expire earlier as set forth in Section 7(b) ("Separation
                  from Employment"). Except as set forth in Section 7(b), the
                  Option may not be exercised until June 30, 2003, when the
                  Option shall become exercisable in full; provided that upon
                  the occurrence of a Change in Control (as defined in the
                  Plan), the Option shall be exercisable in full.

         (b)      Separation from Employment. The Option may be terminated prior
                  to the expiration of the Option Period, and the date when the
                  Option may first be exercised may be modified, in accordance
                  with the following terms and conditions:

                  (1)      Voluntary Separation and Discharge for Cause. If the
                           Participant quits or otherwise separates from the
                           Company under circumstances not described in Section
                           7(b)(2) ("Retirement") through (b)(6) ("Death")
                           below, or if the Participant is discharged from
                           employment with the Company for Cause (as defined
                           below) and subsection (b)(2) below does not apply,
                           this subsection (b)(1) shall apply. If the
                           Participant separates from the Company before the
                           date on which the Option becomes exercisable under
                           Section 7(a), the Option shall be forfeited. If the
                           Participant separates from the Company on or after
                           the date on which the Option becomes exercisable
                           under Section 7(a), the Option may be exercisable in
                           full during the Option Period, i.e., until the
                           earlier of (i) June 30, 2010, or (ii) the fifth
                           anniversary of the date the Participant separates
                           from employment with the Company.

                  (2)      Retirement. If the Participant Retires (as defined
                           below) and subsections (b)(3) through (b)(6) below do
                           not apply, this subsection (b)(2) shall apply. If the
                           Participant Retires before the date on which the
                           Option becomes exercisable under Section 7(a), the
                           Option shall be forfeited. If the Participant Retires
                           on or after the date on which the Option becomes
                           exercisable under Section 7(a), the Option may be
                           exercisable in full during the Option Period, i.e.,
                           until the earlier of (i) June 30, 2010, or (ii) the
                           fifth anniversary of the date the Participant
                           separates from employment with the Company.

                                                                     Exhibit A-2

<PAGE>   22
                  (3)      Involuntary Discharge Without Cause. If the Company
                           discharges the Participant without Cause (as defined
                           below), such as by reason of a Company-initiated,
                           voluntary or involuntary, force management or force
                           reduction program or initiative, the Option shall be
                           immediately exercisable in full. In no event shall
                           the Option be exercisable after the Option Period,
                           i.e., after the earlier of (i) June 30, 2010, or (ii)
                           the later of (A) the fifth anniversary of the date
                           the Participant separates from employment with the
                           Company or (B) June 1, 2008. For purposes of this
                           subsection (b)(3), a Participant's separation from
                           employment with the Company occurs on the last day
                           the Participant is on the payroll of the Company.
                           This subsection (b)(3) shall not apply to a
                           Participant whose employment is terminated for
                           refusal to accept a reassignment that involves no
                           relocation or downgrade.

                  (4)      Termination for Good Reason. If the Participant
                           terminates employment for Good Reason (as defined in
                           the employment agreement to which this Agreement is
                           an exhibit), the Option shall be immediately
                           exercisable in full. In no event shall the Option be
                           exercisable after the Option Period, i.e., after the
                           earlier of (i) June 30, 2010, or (ii) the later of
                           (A) the fifth anniversary of the date the Participant
                           separates from employment with the Company or (B)
                           June 1, 2008. For purposes of this subsection (b)(4),
                           a Participant's separation from employment with the
                           Company occurs on the last day the Participant is on
                           the payroll of the Company.

                  (5)      Disability. If the Participant's separation from
                           employment with the Company occurs as a result of
                           total and permanent disability, as defined under the
                           Company-sponsored long-term disability plan that
                           applies to the Participant (or, if the Participant is
                           not covered by a long-term disability plan, as
                           defined in such plan or in such manner as the Plan
                           Administrator determines), the Option shall be
                           immediately exercisable in full. In no event shall
                           the Option be exercisable after the Option Period,
                           i.e., after the earlier of (i) June 30, 2010, or (ii)
                           the later of (A) the fifth anniversary of the date
                           the Participant separates from employment with the
                           Company or (B) June 1, 2008. For purposes of this
                           subsection (b)(5), a Participant's separation from
                           employment with the Company occurs on the later of
                           the last day the Participant is (i) on the payroll of
                           the Company or (ii) on short-term disability.

                  (6)      Death. If the Participant's separation from
                           employment with the Company occurs as a result of
                           death, the Option shall be

                                                                     Exhibit A-3

<PAGE>   23

                           immediately exercisable in full by the Participant's
                           beneficiary. If the Participant dies after separation
                           from employment with the Company, but while the
                           Option is exercisable in accordance with subsections
                           (b)(1) ("Voluntary Separation and Discharge for
                           Cause") through (b)(5) ("Disability") above, the
                           Participant's beneficiary may exercise the Option to
                           the extent that the Option has become exercisable in
                           accordance with such subsections. In no event shall
                           the Option be exercisable after the Option Period,
                           i.e., after the earlier of (i) June 30, 2010, or (ii)
                           the later of (A) the fifth anniversary of the date
                           the Participant separates from employment with the
                           Company or (B) June 1, 2008.

                  (7)      Termination of Option. Upon the expiration of any
                           period during which the Option is exercisable in
                           accordance with the preceding provisions of this
                           Section 7(b), the Option shall terminate and shall
                           not thereafter be exercisable.

                  (8)      Transfer. Transfer of employment from Verizon to a
                           Related Company, from a Related Company to Verizon,
                           or from one Related Company to another Related
                           Company shall not constitute a separation from
                           employment with the Company hereunder.

                  (9)      Retirement. For purposes of this Section 7(b),
                           "Retire" means (A) to retire with a right to an
                           immediate normal retirement, early retirement or
                           service pension under the Company-sponsored
                           tax-qualified final average pay defined benefit
                           pension plan (excluding from this definition any cash
                           balance plan) in which the Participant actively
                           participates, (B) if the Participant does not
                           actively participate in such a tax-qualified final
                           average pay defined benefit pension plan, to retire
                           (i) after attaining normal retirement age under the
                           Company-sponsored cash balance plan or nonqualified
                           defined benefit pension plan in which the Participant
                           actively participates, or (ii) with a combination of
                           age and years of service (as calculated for
                           retirement-eligibility purposes) that equals or
                           exceeds any of the following combinations:

                                                                     Exhibit A-4

<PAGE>   24
<TABLE>
<CAPTION>

           AGE EQUAL TO OR                             SERVICE EQUAL TO OR
           ----------------                            -------------------
            GREATER THAN:                                 GREATER THAN:
            ------------                                  ------------
<S>                                                    <C>
               Any age                                       30 years
                  50                                         25 years
                  55                                         20 years
                  60                                         15 years
                  65                                         10 years
</TABLE>

                           or (C) retirement under any other circumstances
                           determined in writing by the Plan Administrator.

                  (10)     Cause. For purposes of this Section 7(b), "Cause" is
                           defined as (i) grossly incompetent performance or
                           substantial or continuing inattention to or neglect
                           of the duties and responsibilities assigned to the
                           Participant; fraud, misappropriation or embezzlement
                           involving the Company or a material breach of any
                           provision incorporated in paragraph 15 ("Covenants")
                           of the agreement to which this Agreement is an
                           exhibit, as determined by the CEO(s) in his/their
                           discretion, or (ii) commission of any felony of which
                           the Participant is finally adjudged guilty by a court
                           of competent jurisdiction.

8.       (a)      Exercise. The Option may be exercised, in whole or in part, as
                  permitted under this Agreement, by making payment in
                  accordance with subsection (b), below, and by delivering to
                  the Executive VP - Human Resources (the "EVP HR") or to any
                  delegate of the EVP HR ("Delegate") a notice of exercise in
                  the form approved by the EVP HR or in any other manner
                  approved by the EVP HR. The Participant shall be informed in
                  writing of the appointment, if any, of a Delegate.

         (b)      Payment of Option Price. To exercise the Option, the
                  Participant must pay the Option Price by one of the following
                  methods:

                  (1)      (i) check or wire transfer, (ii) surrender of Common
                           Stock that has been held by the Participant for at
                           least six months, or (iii) a combination of both (i)
                           and (ii);

                  (2)      subject to the prior written approval of the
                           Committee, a recourse promissory note; or

                  (3)      subject to the prior written approval of the EVP HR,
                           the administrator of the stock option program may pay
                           the Option

                                                                     Exhibit A-5

<PAGE>   25

                           Price on behalf of the Participant subject to such
                           terms and conditions as the administrator may impose.

                  For purposes of an exchange of Common Stock in subsection
                  (b)(1), above, the value of a share of Common Stock used to
                  pay the Option Price shall be equal to the average of the high
                  and low sales prices of shares of Common Stock traded on the
                  New York Stock Exchange (or any other exchange or reporting
                  system selected by the Committee) on the date the Option is
                  exercised, or if there are no sales of Common Stock reported
                  for that date, on the date or dates that the Committee
                  determines, in its sole discretion, to be appropriate for
                  purposes of valuation.

                  The Participant may be charged an administrative fee or fees
                  in connection with the exercise of the Option.

9. Notice and Date of Exercise. The notice of exercise shall indicate the number
of shares with respect to which the Option is being exercised. The Option may
not be exercised with respect to fractional shares. In addition, the Option may
not be exercised if the administrator of the stock option program determines
that, at the time of an attempted exercise, the fair market value of the shares
with respect to which the Option is being exercised is either below the Option
Price with respect to such shares or not sufficiently above such Option Price to
cover any applicable taxes and administrative fees. Subject to the conditions
and restrictions set forth in this Agreement, the date of exercise of the Option
shall be the later of (a) the date on which the notice of exercise in the
approved form is received in the office of the EVP HR or in the office of the
Delegate or (b) the date on which either (i) full payment of the Option Price
and any required tax withholding is received by the EVP HR or the Delegate or
(ii) the administrator of the stock option program is irrevocably committed to
make such payment. Notwithstanding the preceding sentence, no shares shall be
issued until full payment is received by the EVP HR or the Delegate. Upon the
exercise of the Option and receipt of full payment, Verizon shall, as soon as
practicable, issue or deliver certificates for the number of shares acquired
thereby, subject to the conditions and restrictions set forth in this Agreement.
If the Participant dies following the exercise of all or part of the Option, but
before issuance or delivery of the shares, such shares shall be issued or
delivered to the Participant's beneficiary.

10. Shareholder Rights. The Participant shall have no rights as a shareholder
with respect to shares of Common Stock to which the Option relates until the
date on which the Participant becomes the holder of record of such shares.
Except as provided by the Plan, no adjustment shall be made for dividends or
other rights for which the record date is prior to such date.

11. Amendment of Option. The Committee may not, without the written consent of
the Participant, revoke this Agreement insofar as it relates to the Option
granted

                                                                     Exhibit A-6

<PAGE>   26

hereunder, and may not without such written consent make or change any
determination or change any term, condition or provision affecting the Option if
the determination or change would materially and adversely affect the Option or
the Participant's rights thereto.

12. Assignment. The Option shall not be assignable or transferable except by
will or by the laws of descent and distribution. During the Participant's
lifetime, the Option may be exercised only by the Participant or by the
Participant's guardian or legal representative.

13. Beneficiary. The Participant shall designate a beneficiary in writing and in
such manner as is acceptable to the EVP HR or the Delegate. If the Participant
fails to so designate a beneficiary, or if no such designated beneficiary
survives the Participant, the Participant's beneficiary shall be the
Participant's beneficiary under the Company-paid group life insurance plan in
which the Participant participates at the time of the Participant's death. If
the Participant does not participate in a Company-paid group life insurance plan
at the time of the Participant's death, the Participant's beneficiary shall be
the Participant's estate.

14. Other Plans and Agreements. Any gain realized by the Participant pursuant to
this Agreement shall not be taken into account as compensation in the
determination of the Participant's benefits under any pension, savings, group
insurance, or other benefit plan maintained by the Company, except as determined
by the board of directors of Verizon or, in the case of a plan not maintained by
Verizon, the Related Company that maintains the plan. The Participant
acknowledges that receipt of this Agreement or any prior stock option agreement
shall not entitle the Participant to any other benefits under the Plan or any
other plans maintained by the Company.

15. Company and Related Company. For purposes of this Agreement, "Company" means
Verizon and Related Companies. "Related Company" means (i) any corporation,
partnership, joint venture or other entity in which Verizon holds a direct or
indirect ownership or proprietary interest of 50 percent or more, or (ii) any
corporation, partnership, joint venture or other entity in which Verizon holds
an ownership or proprietary interest of less than 50 percent but which, in the
discretion of the Committee, is treated as a Related Company for purposes of
this Agreement.

16. Employment Status. The grant of the Option shall not be deemed to constitute
a contract of employment between the Company and the Participant, nor shall it
constitute a right to remain in the employ of the Company.

17. Withholding. It shall be a condition to the issuance or delivery of shares
of Common Stock as to which the Option shall have been exercised that provisions
satisfactory to the Company shall have been made for payment of any taxes
reasonably determined by the Company or the Delegate to be required to be paid

                                                                     Exhibit A-7

<PAGE>   27

or withheld pursuant to any applicable law or regulation. The Participant may
irrevocably elect to have the minimum required amount of any withholding tax
obligation satisfied by (a) having shares withheld that are otherwise to be
issued or delivered to the Participant with respect to the exercise of the
Option, (b) delivering to the Company or the Delegate other shares of Common
Stock that have been held by the Participant for at least six months, or (c) any
other method approved by the EVP HR of which the Participant may be informed in
writing.

18. Securities Laws. If at the time of any exercise of the Option in whole or in
part, the Company deems it to be a violation of any federal or state securities
law or regulation to issue or deliver its shares pursuant to such exercise, the
Company, at its sole option, may reject such exercise and return the tender or
make application for such qualification or registration as the Company deems
advisable. The Company shall not be required to issue or deliver any shares of
Common Stock prior to the admission of such shares to listing on any stock
exchange on which the stock may then be listed and the completion of any
registration or qualification of such shares under any federal or state law or
rulings or regulations of any government body that the Company, in its sole
discretion, determines to be necessary or advisable.

19. Committee Authority. The Committee shall have complete discretion in the
exercise of its rights, powers, and duties under this Agreement. Any
interpretation or construction of any provision of, and the determination of any
question arising under, this Agreement shall be made by the Committee in its
sole discretion and shall be final, conclusive, and binding. The Committee may
designate any individual or individuals to perform any of its functions
hereunder.

20. Successors. This Agreement shall be binding upon, and inure to the benefit
of, any successor or successors of Verizon and the person or entity to whom the
Option may have been transferred by will, the laws of descent and distribution,
or beneficiary designation. All terms and conditions of this Agreement imposed
upon the Participant shall, unless the context clearly indicates otherwise, be
deemed, in the event of the Participant's death, to refer to and be binding upon
such last-mentioned person or entity.

21. Construction. This Agreement is intended to grant the Option upon the terms
and conditions authorized by the Plan. Any provisions of this Agreement that
cannot be so administered, interpreted, or construed shall be disregarded. In
the event that any provision of this Agreement is held invalid or unenforceable
by a court of competent jurisdiction, such provision shall be considered
separate and apart from the remainder of this Agreement, which shall remain in
full force and effect. In the event that any provision is held to be
unenforceable for being unduly broad as written, such provision shall be deemed
amended to narrow its application to the extent necessary to make the provision
enforceable according to applicable law and shall be enforced as amended.

                                                                     Exhibit A-8

<PAGE>   28

22. Defined Terms. Except where the context clearly indicates otherwise, all
capitalized terms used herein shall have the definitions ascribed to them by the
Plan, and the terms of the Plan shall apply where appropriate.

23. Execution of Agreement. The Participant shall indicate consent to the terms
of this Agreement and the Plan by executing the attached signature page which is
made a part of this Agreement.

24. Confidentiality. The Participant shall not disclose, in whole or in part any
of the terms of this Agreement, except to the extent (a) otherwise required by
law or (b) the Company has publicly disclosed the terms of this Agreement. This
Section 24 does not prevent the Participant from disclosing the terms of this
Agreement to any future spouse of the Participant or to the Participant's legal,
tax, or financial adviser, provided that the Participant take all reasonable
measures to assure that he or she does not disclose the terms of this Agreement
to a third party except as otherwise required by law.

                                                                     Exhibit A-9

<PAGE>   29

                                 SIGNATURE PAGE

By executing this page, the undersigned Participant agrees to be bound by the
terms of the Plan and the Founders' Grant Stock Option Agreement, the terms of
which are incorporated herein by reference, in connection with the following
grant to the Participant under the Plan:

<TABLE>
<S>                                                 <C>
NAME OF PARTICIPANT:                                Lawrence T. Babbio, Jr.

SOCIAL SECURITY NUMBER:                             [Social Security Number]

DATE OF GRANT:                                      Sept. 7, 2000

NUMBER OF SHARES:                                   450,000

OPTION PRICE:                                       $43.34

PLAN FROM WHICH OPTIONS ARE AWARDED:                Bell Atlantic 1985 Incentive
                                                    Stock Option Plan
</TABLE>

IN WITNESS WHEREOF, Verizon Communications Inc., by its duly authorized Officer,
and the Participant have executed this Agreement.

                              VERIZON COMMUNICATIONS INC.

    ---------------------------                  -------------------------------
By:       Charles R. Lee                               Ivan G. Seidenberg

                           Co-Chief Executive Officers

                                                 -------------------------------
                                                           Participant

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

Please indicate your acceptance by signing above and returning the signed
Agreement to us within ten business days after your receipt of this Agreement.

Please complete the Beneficiary Designation form on the back side.

<PAGE>   30

                                    EXHIBIT B

                           VERIZON COMMUNICATIONS INC.

                   PERFORMANCE SHARE RETENTION UNIT AGREEMENT

         AGREEMENT between Verizon Communications Inc. ("Verizon") and the
participant identified on the attached signature page (the "Participant").

         1. Purpose of Agreement. The purpose of this Agreement is to provide a
one-time grant of restricted stock units to the Participant, as a senior
management employee of Verizon, in light of the merger of GTE Corporation and
Bell Atlantic Corporation and the creation of Verizon Communications Inc. The
restricted stock units that are the subject of this grant shall be known as
"Performance Share Retention Units."

         2. Agreement. This Agreement is entered into pursuant to the terms of
the plan or plans specified on the attached signature page (the "Plan"), and
evidences the grant of a stock-based award in the form of restricted stock units
("RSUs") pursuant to the Plan. The Agreement is subject to the terms and
provisions of the Plan. By execution of this Agreement, the Participant
acknowledges receipt of a copy of the Plan and further agrees to be bound
thereby and by the actions of the Human Resources Committee of Verizon's Board
of Directors or any successor thereto (the "Committee") and Verizon's Board of
Directors pursuant to the Plan.

         3. Contingency. The grant of Performance Share Retention Units is
contingent on the Participant's timely execution of this Agreement and the
agreement to which this Agreement is an exhibit. If the Participant does not
timely execute this Agreement and the agreement to which this Agreement is an
exhibit, the Participant shall not receive the grant of Performance Share
Retention Units.

         4. Number of Units. The Participant is granted the number of RSUs
specified on the attached signature page as of July 1, 2000. An RSU is a
hypothetical share of Verizon's Common Stock. The value of an RSU on any given
date shall be equal to the closing price of Verizon's Common Stock as of such
date. An RSU does not represent an equity interest in Verizon and carries no
voting rights. A Dividend Equivalent Unit ("DEU") or fraction thereof shall be
added to each RSU each time that a dividend is paid on Verizon's Common Stock.
The amount of each DEU shall be equal to the dividend paid on a share of
Verizon's Common Stock. The DEU shall be converted into RSUs or fractions
thereof based upon the average of the high and low sales prices of Verizon's
Common Stock traded on the New York Stock Exchange on the dividend payment date
of each declared dividend on Verizon's Common Stock, and such RSUs or fractions
thereof shall be added to the Participant's RSU balance.

                                                                     Exhibit B-1

<PAGE>   31

         5. Grant Date. The Grant Date for this RSU grant shall be the Grant
Date specified on the attached signature page.

         6. Vesting.

                  (a) For purposes of vesting, this RSU grant shall be divided
         into three tranches, each of which shall include the following
         percentage of the total number of RSUs granted pursuant to paragraph 4,
         above, and any additional RSUs that are attributable to DEUs on RSUs in
         that tranche:

<TABLE>
<CAPTION>

                       Tranche                    Percentage of Initial RSUs
                       -------                    --------------------------
<S>                                               <C>
                          1                                  50%

                          2                                  25%

                          3                                  25%
</TABLE>

                  (b) Tranche 1.

                           (1) Tranche 1 shall vest on the basis of the
                  Participant's continued employment with Verizon after the
                  Grant Date. The vesting schedule for Tranche 1 shall be as set
                  forth in the following table:

<TABLE>
<CAPTION>

                                                         Percentage to              Aggregate Percentage
                         Years of Service                    Vest                          Vested
                  ------------------------------- ----------------------------- -----------------------------
<S>                                                <C>                          <C>
                           less than 3                         0%                            0%

                                3                             50%                           50%

                                4                             25%                           75%

                            5 or more                         25%                           100%
</TABLE>

                           (2) For purposes for the table set forth in
                  subparagraph (1), above--

                                    (i) "Years of Service" shall mean full years
                           of continuous employment with Verizon following June
                           30, 2000. There shall be no proration or
                           interpolation for partial years of service.

                                    (ii) "Percentage to Vest" shall mean the
                           percentage of Tranche 1 that first vests upon
                           attainment of the applicable period of service. It
                           does not mean the aggregate percentage of Tranche 1
                           that is vested at that time.

                                                                     Exhibit B-2

<PAGE>   32

                                    (iii) "Aggregate Percentage Vested" shall
                           mean the aggregate percentage of Tranche 1 that is
                           vested upon completion of the specified period of
                           service. It does not mean the percentage of Tranche 1
                           that first becomes vested upon completion of the
                           specified period of service.

                  (c) Tranche 2. Subject to continuous employment requirement
         set forth in paragraph 6(e), below, Tranche 2 shall vest based on the
         growth of Verizon's annual revenues as follows--

                           (1) As set forth in the following table, if Verizon's
                  annual revenues in the "Target Year" exceed Verizon's revenues
                  in the "Baseline Year" by the "Revenue Growth Goal" or more,
                  the applicable percentage of Tranche 2 shall vest:

<TABLE>
<CAPTION>

                                                      Revenue                               Aggregate
                      Target         Baseline         Growth           Percentage           Percentage
                       Year            Year            Goal              to Vest             Vested
                  --------------- --------------- ---------------- ------------------- ---------------------
<S>                               <C>             <C>              <C>                 <C>
                       2002            2000            15.5%              50%                  N/A

                       2003            2002             7.5%              25%                  N/A

                       2004            2003             7.5%              25%                  N/A
</TABLE>

                           (2) For purposes of the table set forth in
                  subparagraph (c)(1), above--

                                    (i) Revenues shall be determined by the Plan
                           Administrator.

                                    (ii) "Percentage to Vest" shall mean the
                           percentage of Tranche 2 that first vests upon
                           attainment of the applicable Revenue Growth Goal. It
                           does not mean the aggregate percentage of Tranche 2
                           that is vested at that time.

                                    (iii) The "Aggregate Percentage Vested"
                           column is not applicable to Tranche 2 because the
                           vesting of each portion of Tranche 2 is independent
                           of the vesting of any other portion of Tranche 2. If
                           Verizon meets the Revenue Growth Goal for Target Year
                           2003 or 2004, and the Participant satisfies the
                           continuous employment requirement of paragraph 6(e),
                           below, the applicable percentage of Tranche 2 shall
                           vest whether or not the portion of Tranche 2 related
                           to an earlier Target Year has vested.

                                                                     Exhibit B-3

<PAGE>   33

                  (d) Tranche 3. Subject to continuous employment requirement
         set forth in paragraph 6(e), below, Tranche 3 shall vest based on
         growth of earnings per share of Verizon's common stock ("EPS") as
         follows--

                           (1) As set forth in the following table, if the EPS
                  in the "Target Year" exceeds the EPS in the "Baseline Year" by
                  the "EPS Growth Goal" or more, the applicable percentage of
                  Tranche 3 shall be vested:

<TABLE>
<CAPTION>

                                                      Revenue                               Aggregate
                      Target         Baseline         Growth           Percentage           Percentage
                       Year            Year            Goal              to Vest             Vested
                  --------------- --------------- ---------------- ------------------- ---------------------
<S>                               <C>             <C>              <C>                 <C>

                       2002            2000              17%                      50%          50%

                       2003            2000              31%               25% or 75%          75%

                       2004            2000            46.5%        25%, 50%, or 100%         100%
</TABLE>

                  *This column is explained in paragraph 6(d)(2)(ii), below.

                           (2) For purposes of the table set forth in
                  subparagraph (d)(1), above--

                                    (i) EPS shall be determined by the Plan
                           Administrator.

                                    (ii) "Percentage to Vest" shall mean
                           percentage of Tranche 3 that first vests upon
                           attainment of the applicable EPS Growth Goal. It is
                           stated in the alternative due to the cumulative
                           nature of the EPS Growth Goals for Tranche 3, all of
                           which use Baseline Year 2000. Subject to the
                           continuous employment requirement set forth in
                           paragraph 6(e), the "Percentage to Vest" of Tranche 3
                           shall be as follows--

                                             (A) Target Year 2002. If the EPS
                                    Growth Goal for Target Year 2002 is
                                    attained, 50% of Tranche 3 shall vest.

                                             (B) Target Year 2003. If the EPS
                                    Growth Goal for Target Year 2003 is
                                    attained: (1) 25% of Tranche 3 shall vest,
                                    and, (2) an additional 50% of Tranche 3
                                    shall also vest if the EPS Goal for Target
                                    Year 2002 was not attained at the end of
                                    Target Year 2002.

                                             (C) Target Year 2004. If the EPS
                                    Growth Goal for Target Year 2004 is
                                    attained: (1) 25% of Tranche 3 shall vest,
                                    (2) an additional 25% of Tranche 3 shall
                                    also

                                                                     Exhibit B-4

<PAGE>   34

                                    vest if the EPS Goal for Target Year 2003
                                    was not attained at the end of Target Year
                                    2003, and (3) an additional 50% of Tranche 3
                                    shall also vest if the EPS Goal for Target
                                    Year 2002 was not attained at the end of
                                    Target Year 2002 and the EPS Goal for Target
                                    Year 2003 was not attained at the end of
                                    Target Year 2003.

                                    (iii) "Aggregate Percentage Vested" shall
                           mean the aggregate percentage of Tranche 3 that is
                           vested upon attainment of the applicable EPS Goal. It
                           does not mean the percentage of Tranche 3 that first
                           becomes vested at that time.

                  (e) Continuous Employment Requirement.

                           (1) The percentage of Tranches 2 or 3 related to a
                  Target Year shall vest only if the Participant is continuously
                  employed by Verizon from the Grant Date until June 30th of the
                  year after the applicable Target Year.

                           (2) There shall be no proration or interpolation for
                  partial years of service--if the Participant does not satisfy
                  the requirements of this paragraph 6(e), the Participant shall
                  not vest in any RSUs related to a Target Year, notwithstanding
                  any period of service during or after the Target Year or the
                  attainment of the applicable Revenue Growth Goal or EPS Growth
                  Goal.

                  (f) Transfer. Transfer of employment from Verizon to a Related
         Company, from a Related Company to Verizon, or from one Related Company
         to another Related Company shall not constitute a separation from
         employment hereunder.

                  (g) Vested RSUs shall not be forfeited.

         7. Payment. All payments under this Agreement shall be made in shares
of Verizon's Common Stock, except for any fractional shares, which shall be paid
in the form of cash. As soon as practicable after the Participant has become
vested in all or a portion of a tranche of RSUs, the value of RSUs in that
tranche or portion of the tranche shall be paid to the Participant (subject,
however, to any deferral application that the Participant has made under the
deferral plan then available to the Participant and procedures adopted by the
Plan Administrator). If the Participant dies before any payment due hereunder is
made, such payment shall be made to the Participant's beneficiary. Once a
payment has been made with respect to an RSU, the RSU shall be canceled.

         8. Early Cancellation/Accelerated Vesting of RSUs. Subject to the
provisions of paragraph 8(e) hereof, RSUs may vest or be forfeited before
vesting in accordance with paragraph 6 hereof as follows:

                                                                     Exhibit B-5
<PAGE>   35

                  (a) Retirement, Voluntary Separation, or Termination for
         Cause. If the Participant retires, quits, or otherwise separates from
         employment under circumstances not described in subparagraphs (b)
         through (d), below, or is terminated for Cause, all then-unvested RSUs
         shall be canceled immediately, and shall not be payable, except to the
         extent the Committee decides otherwise. For purposes of this Agreement,
         "Cause" is defined as (i) grossly incompetent performance or
         substantial or continuing inattention to or neglect of the duties and
         responsibilities assigned to the Participant; fraud, misappropriation
         or embezzlement involving the Company or a material breach of any
         provision incorporated in paragraph 15 ("Covenants") of the employment
         agreement to which this Agreement is an exhibit, as determined by the
         CEO(s) in his/their discretion, or (ii) commission of any felony of
         which the Participant is finally adjudged guilty by a court of
         competent jurisdiction.

                  (b) Involuntary Termination Without Cause. Notwithstanding the
         preceding provisions of this paragraph 8 or the continuous employment
         requirement set forth in paragraph 6(e), if the Participant is
         involuntarily terminated from employment other than for Cause--

                           (1) all then-unvested RSUs in Tranche 1 shall vest
                  immediately;

                           (2) the then-unvested RSUs in Tranche 2 shall be
                  subject to the vesting provisions set forth in paragraph 6(c),
                  except that the continuous employment requirement set forth in
                  paragraph 6(e) shall not apply; and

                           (3) the then-unvested RSUs in Tranche 3 shall be
                  subject to the vesting provisions set forth in paragraph 6(d),
                  except that the continuous employment requirement set forth in
                  paragraph 6(e) shall not apply.

         All RSUs that vest pursuant to paragraphs 8(b)(1), 8(b)(2), or 8(b)(3)
         shall be payable at the time the RSUs would have been payable had the
         Participant been subject to and satisfied the continuous employment
         requirement set forth in paragraph 6(e).

                  (c) Termination for Good Reason. If, before all RSUs in a
         tranche have vested, the Participant terminates employment for Good
         Reason (as defined in the employment agreement to which this Agreement
         is an exhibit), the then-unvested RSUs in each tranche shall be subject
         to the vesting provisions set forth in paragraph 8(b) (Involuntary
         Termination Without Cause), above.

                                                                     Exhibit B-6
<PAGE>   36

                  (d) Disability or Death. If, before all RSUs in a tranche have
         vested, the Participant separates from employment by reason of death or
         disability (as determined by the Committee), the then-unvested RSUs in
         each tranche shall be subject to the vesting provisions set forth in
         paragraph 8(b) (Involuntary Termination Without Cause), above.

                  (e) Change in Control. Upon the occurrence of a Change in
         Control (as defined in the 2000 Verizon Communications Broad-Based
         Incentive Plan), all then-unvested RSUs shall vest and be payable
         immediately without regard to the Revenue Growth Goals or EPS Growth
         Goals that otherwise would apply to RSUs in Tranches 2 and 3, except
         that no portion of Tranche 2 shall vest if the Change in Control occurs
         after the end of a Target Year and the applicable Revenue Growth Goal
         was not attained for that Target Year.

                  (f) Vesting Schedule. Except as provided in subparagraphs (b)
         or (c), above, nothing in this paragraph 8 shall accelerate the vesting
         schedule of RSUs prescribed by the provisions of paragraph 6 hereof.

         9. Shareholder Rights. The Participant shall have no rights as a
shareholder with respect to shares of Common Stock to which this grant relates
until the date on which the Participant becomes the holder of record of such
shares. Except as provided in the Plan or in this Agreement, no adjustment shall
be made for dividends or other rights for which the record date is prior to such
date.

         10. Extraordinary Events. In determining EPS or Revenue Growth, and for
other appropriate purposes under this Agreement, the Plan Administrator will
have the discretion to take into consideration any or all of the following: (a)
the effects of business combinations; (b) the effects of discontinued operations
(including loss on disposal of a line of business or class of customer); (c)
changes in accounting principles; (d) extraordinary items; (e) restructuring
charges; and (f) changes in tax law. Items (a) and (b) will be as defined in
accordance with Generally Accepted Accounting Principles ("GAAP"), and items (c)
through (f) will be as defined in accordance with GAAP and as defined and as
disclosed in the Company's financial statements.

         11. Revocation or Amendment of Agreement. The Committee may not,
without the written consent of the Participant, revoke this Agreement insofar as
it relates to the RSUs granted hereunder, and may not without such written
consent make or change any determination or change any term, condition or
provision affecting the RSUs if the determination or change would materially and
adversely affect the Performance Share Retention Units or the Participant's
rights thereto.

         12. Assignment. The RSUs shall not be assignable or transferable except
by will or by the laws of descent and distribution. During the Participant's
lifetime, the RSUs may be deferred only by the Participant or by the
Participant's guardian or legal representative.

                                                                     Exhibit B-7
<PAGE>   37

         13. Beneficiary. The Participant shall designate a beneficiary in
writing and in such manner as is acceptable to the Executive VP - Human
Resources (the "EVP HR") or to any delegate of the EVP HR. If the Participant
fails to so designate a beneficiary, or if no such designated beneficiary
survives the Participant, the Participant's beneficiary shall be the
Participant's beneficiary under the Company-paid group life insurance plan in
which the Participant participates at the time of the Participant's death. If
the Participant does not participate in a Company-paid group life insurance plan
at the time of the Participant's death, the Participant's beneficiary shall be
the Participant's estate.

         14. Other Plans and Agreements. Any gain realized by the Participant
pursuant to this Agreement shall not be taken into account as compensation in
the determination of the Participant's benefits under any pension, savings,
group insurance, or other benefit plan maintained by Verizon or a Related
Company, except as determined by the board of directors of such company. The
Participant acknowledges that receipt of this Agreement or any prior RSU
agreement shall not entitle the Participant to any other benefits under the Plan
or any other plans maintained by the Company.

         15. Company and Related Company. For purposes of this Agreement,
"Company" means Verizon and Related Companies. "Related Company" means (i) any
corporation, partnership, joint venture, or other entity in which Verizon hold a
direct or indirect ownership or proprietary interest of 50 percent or more, or
(ii) any corporation, partnership, joint venture, or other entity in which
Verizon holds an ownership or other proprietary interest of less than 50 percent
but which, in the discretion of the Committee, is treated as a Related Company
for purposes of this Agreement.

         16. Employment Status. The grant of the RSUs shall not be deemed to
constitute a contract of employment between the Company and the Participant, nor
shall it constitute a right to remain in the employ of any such company.

         17. Withholding. It shall be a condition to the issuance or delivery of
shares of Common Stock as to which the RSUs relate that provisions satisfactory
to the Company shall have been made for payment of any taxes determined by the
Company to be required to be paid or withheld pursuant to any applicable law or
regulation. The Participant may irrevocably elect to have the minimum required
amount of any withholding tax obligation satisfied by (a) having shares withheld
that are otherwise to be issued or delivered to the Participant with respect to
the RSUs, or (b) delivering to the Company either shares of Common Stock
received with respect to the RSUs or other shares of Common Stock that have been
held by Participant for at least six months, or (c) any other method approved by
the EVP HR of which the Participant may be informed in writing.

                                                                     Exhibit B-8
<PAGE>   38

         18. Securities Laws. The Company shall not be required to issue or
deliver any shares of Common Stock prior to the admission of such shares to
listing on any stock exchange on which the stock may then be listed and the
completion of any registration or qualification of such shares under any federal
or state law or rulings or regulations of any government body that the Company,
in its sole discretion, determines to be necessary or advisable.

         19. Committee Authority. The Committee shall have complete discretion
in the exercise of its rights, powers, and duties under this Agreement. Any
interpretation or construction of any provision of, and the determination of any
question arising under, this Agreement shall be made by the Committee in its
sole discretion and shall be final, conclusive, and binding. The Committee may
designate any individual or individuals to perform any of its functions
hereunder.

         20. Successors. This Agreement shall be binding upon, and inure to the
benefit of, any successor or successors of the Company and the person or entity
to whom the RSUs may have been transferred by will, the laws of descent and
distribution, or beneficiary designation. All terms and conditions of this
Agreement imposed upon the Participant shall, unless the context clearly
indicates otherwise, be deemed, in the event of the Participant's death, to
refer to and be binding upon such last-mentioned person or entity.

         21. Construction. This Agreement is intended to grant the RSUs upon the
terms and conditions authorized by the Plan. Any provisions of this Agreement
that cannot be so administered, interpreted, or construed shall be disregarded.
In the event that any provision of this Agreement is held invalid or
unenforceable by a court of competent jurisdiction, such provision shall be
considered separate and apart from the remainder of this Agreement, which shall
remain in full force and effect. In the event that any provision is held to be
unenforceable for being unduly broad as written, such provision shall be deemed
amended to narrow its application to the extent necessary to make the provision
enforceable according to applicable law and shall be enforced as amended.

         22. Defined Terms. Except where the context clearly indicates
otherwise, all capitalized terms used herein shall have the definitions ascribed
to them by the Plan, and the terms of the Plan shall apply where appropriate.

         23. Execution of Agreement. The Participant shall indicate consent to
the terms of this Agreement and the Plan by executing the attached signature
page which is made a part of this Agreement.

         24. Confidentiality. Except to the extent otherwise required by law or
publicly disclosed by the Company, the Participant shall not disclose, in whole
or in part any of the terms of this Agreement. This paragraph 24 does not
prevent the Participant from disclosing the terms of this Agreement to any
future spouse of the Participant or to the Participant's legal, tax, or
financial adviser, provided that the Participant

                                                                     Exhibit B-9
<PAGE>   39

take all reasonable measures to assure that he or she does not disclose the
terms of this Agreement to a third party except as otherwise required by law.

                                                                    Exhibit B-10
<PAGE>   40

                                 SIGNATURE PAGE

By executing this page, the undersigned Participant agrees to be bound by the
terms of the plan(s) listed below and the Performance Share Retention Unit
Agreement, the terms of which are incorporated herein by reference, in
connection with the following grant to the Participant under the Plan:

<TABLE>
<S>                                           <C>
NAME OF PARTICIPANT:                          Lawrence T. Babbio, Jr.

SOCIAL SECURITY NUMBER:                       [Social Security Number]

GRANT DATE:                                   September 7, 2000

NUMBER OF RSUS:                               100,000

PLAN(S) FROM WHICH RSUS AWARDED:              Tranche 1--Verizon Communications
                                              2000 Broad-Based Incentive Plan

                                              Tranches 2 and 3--1997 GTE
                                              Long-Term Incentive Plan
</TABLE>

IN WITNESS WHEREOF, Verizon Communications Inc., by its duly authorized Officer,
and the Participant have executed this Agreement.

                           VERIZON COMMUNICATIONS INC.

    -----------------------------               --------------------------------
By:        Charles R. Lee                              Ivan G. Seidenberg

                           Co-Chief Executive Officers

                                                --------------------------------
                                                          Participant

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

Please indicate your acceptance by signing above and returning the signed
Agreement to us within ten business days of your receipt of this Agreement.

Please complete the Beneficiary Designation form on the back side.

<PAGE>   41

                                    EXHIBIT C

                               EXCISE TAX GROSS-UP

         1. GROSS-UP PAYMENT - If any payment or benefit received or to be
received by you from the Company pursuant to the terms of the Agreement to which
this Exhibit C is attached or otherwise (the "Payments") would be subject to the
excise tax (the "Excise Tax") imposed by section 4999 of the Internal Revenue
Code (the "Code") as determined in accordance with this Exhibit C, the Company
shall pay you, at the time specified below, an additional amount (the "Gross-Up
Payment") such that the net amount that you retain, after deduction of the
Excise Tax on the Payments and any federal, state, and local income tax and the
Excise Tax upon the Gross-Up Payment, and any interest, penalties, or additions
to tax payable by you with respect thereto, shall be equal to the total present
value (using the applicable federal rate (as defined in section 1274(d) of the
Code) in such calculation) of the Payments at the time such Payments are to be
made.

         2. CALCULATIONS - For purposes of determining whether any of the
Payments shall be subject to the Excise Tax and the amount of such excise tax,

         (a)      The total amount of the Payments shall be treated as
                  "parachute payments" within the meaning of section 280G(b)(2)
                  of the Code, and all "excess parachute payments" within the
                  meaning of section 280G(b)(1) of the Code shall be treated as
                  subject to the excise tax, except to the extent that, in the
                  written opinion of independent counsel selected by Verizon and
                  reasonably acceptable to you ("Independent Counsel"), a
                  Payment (in whole or in part) does not constitute a "parachute
                  payment" within the meaning of section 280G(b)(2) of the Code,
                  or such "excess parachute payments" (in whole or in part) are
                  not subject to the Excise Tax;

         (b)      The amount of the Payments that shall be subject to the Excise
                  Tax shall be equal to the lesser of (i) the total amount of
                  the Payments or (ii) the amount of "excess parachute payments
                  " within the meaning of section 280G(b)(1) of the Code (after
                  applying clause (a), above); and

         (c)      The value of any noncash benefits or any deferred payment or
                  benefit shall be determined by Independent Counsel in
                  accordance with the principles of section 280G(d)(3) and (4)
                  of the Code.

         3. TAX RATES - For purposes of determining the amount of the Gross-Up
Payment, you shall be deemed to pay federal income taxes at the highest marginal
rates of federal income taxation applicable to individuals in the calendar year
in which the Gross-Up Payment is to be made and state and local income taxes at
the

                                                                     Exhibit C-1
<PAGE>   42

highest marginal rates of taxation applicable to individuals as are in effect in
the state and locality of your residence in the calendar year in which the
Gross-Up Payment is to be made, net of the maximum reduction in federal income
taxes that can be obtained from deduction of such state and local taxes, taking
into account any limitations applicable to individuals subject to federal income
tax at the highest marginal rates.

         4. TIME OF GROSS-UP PAYMENTS - The Gross-Up Payments provided for in
this Exhibit C shall be made upon the earlier of (a) the payment to you of any
Payment or (b) the imposition upon you, or any payment by you, of any Excise
Tax.

         5. ADJUSTMENTS TO GROSS-UP PAYMENTS - If it is established pursuant to
a final determination of a court or an Internal Revenue Service proceeding or
the written opinion of Independent Counsel that the Excise Tax is less than the
amount previously taken into account hereunder, you shall repay the Company,
within 30 days of your receipt of notice of such final determination or opinion,
the portion of the Gross-Up Payment attributable to such reduction (plus the
portion of the Gross-Up Payment attributable to the Excise Tax and federal,
state, and local income tax imposed on the Gross-Up Payment being repaid by you
if such repayment results in a reduction in Excise Tax or a federal, state, and
local income tax deduction) plus any interest received by you on the amount of
such repayment, provided that if any such amount has been paid by you as an
Excise Tax or other tax, you shall cooperate with the Company in seeking a
refund of any tax overpayments, and you shall not be required to make repayments
to the Company until the overpaid taxes and interest thereon are refunded to
you.

         6. ADDITIONAL GROSS-UP PAYMENT - If it is established pursuant to a
final determination of a court or an Internal Revenue Service proceeding or the
written opinion of Independent Counsel that the Excise Tax exceeds the amount
taken into account hereunder (including by reason of any payment the existence
or amount of which cannot be determined at the time of the Gross-Up Payment),
the Company shall make an additional Gross-Up Payment in respect of such excess
within 30 days of the Company's receipt of notice of such final determination or
opinion.

         7. CHANGE IN LAW OR INTERPRETATION - In the event of any change in or
further interpretation of section 280G or 4999 of the Code and the regulations
promulgated thereunder, you shall be entitled, by written notice to Verizon, to
request a written opinion of Independent Counsel regarding the application of
such change or further interpretation to any of the foregoing, and Verizon shall
use its best efforts to cause such opinion to be rendered as promptly as
practicable.

         8. FEES AND EXPENSES - All fees and expenses of Independent Counsel
incurred in connection with this Exhibit C shall be borne by Verizon.

                                                                     Exhibit C-2
<PAGE>   43

         9. SURVIVAL - The Company's obligation to make a Gross-Up Payment with
respect to Payments made or accrued before the end of the Term of Employment
shall survive the Term of Employment unless (a) you fail to execute a release in
accordance with paragraph 14 ("Release") of the Agreement to which this Exhibit
C is attached or (b) you fail to comply with the covenants incorporated in
paragraph 15 ("Covenants") of such Agreement, in which event the Company's
obligation under this Exhibit C shall terminate immediately.

         10. DEFINED TERMS - Except where clearly provided to the contrary, all
capitalized terms used in this Exhibit C shall have the definitions given to
those terms in the Agreement to which this Exhibit C is attached.

                                                                     Exhibit C-3
<PAGE>   44

                                    EXHIBIT D

                                   GOOD REASON

For purposes of the Agreement to which this Exhibit D is attached (the
"Agreement"), "Good Reason" means any of the following events:

(1)   The Company materially breaches a term or condition of the Agreement.

(2)   (a) Your overall compensation opportunities (as contrasted with overall
      compensation actually paid or awarded) are significantly reduced, (b) your
      salary is reduced by 10% or more, or (c) there is a negative individual
      performance adjustment (as contrasted with a generally applicable negative
      performance adjustment) that results in your short-term bonus for a year
      being no more than 90% of your short-term bonus for the immediately
      preceding year.

(3)   You are assigned to a new principal work location that is more than 50
      miles from your previous principal work location.

(4)   (a) Your key responsibilities as Vice-Chairman - Verizon, and President -
      Telecom (as defined by the present organization structure), including your
      responsibility to attend meetings of the Verizon Board of Directors and to
      serve as a member of the Corporate Leadership Council, are significantly
      diminished, or (b) there is a significant alteration of the Company's
      business as a result of a merger or other business combination, a
      divestiture of significant businesses or assets, a significant joint
      venture, or similar transaction.

(5)   You fail to maintain your rank with regard to pay and position relative to
      the CEO(s); provided that you shall not have Good Reason pursuant to this
      paragraph (5) merely because (a) other executives achieve parity with you
      on the basis of pay and/or position and/or (b) pay increases and/or
      position upgrades are awarded to other executives if the pay increases do
      not cause any executive (other than the CEO(s)) to be paid more than you
      and if the position upgrades do not elevate any executive (other than the
      CEO(s)) to a position superior to yours; and provided further that you
      shall not have Good Reason pursuant to this paragraph (5) merely because
      pay increases and/or position upgrades are awarded to one or both CEO(s).
      For purposes of this paragraph (5), whether another executive is more
      highly paid than you shall be determined by comparing the sum of the
      annual base salary and the annual short-term and long-term bonus
      opportunities (as contrasted with compensation actually paid or awarded)
      provided to the other executive and to you.

(6)   You do not report to either of the current CEO(s).

                                                                     Exhibit D-1
<PAGE>   45

(7)   Verizon fails to implement the CEO/Chairman succession plan set forth in
      the Agreement and Plan of Merger Dated as of July 27, 1998, among Bell
      Atlantic Corporation, Beta Gamma Corporation and GTE Corporation (the
      "Succession Plan") by reason of

            (a)   the retirement, death, disability, or termination for cause of
                  either of the current Co-CEOs, and the other Co-CEO becomes
                  the sole CEO, provided that you continue to fulfill your
                  duties under this Agreement until June 30, 2002;

            (b)   the termination without cause, termination for good reason, or
                  constructive discharge of either of the current Co-CEOs (as
                  determined under their respective employment agreements),
                  provided that you continue to fulfill your duties under this
                  Agreement until the earlier of (i) June 30, 2002, or (ii) the
                  expiration of six months after such constructive discharge; or

            (c)   the appointment of anyone other than the current Co-CEOs as
                  sole CEO or Co-CEO, provided that you continue to fulfill your
                  duties under this Agreement until the earlier of (i) June 30,
                  2002, or (ii) the expiration of six months after such
                  appointment.

      Notwithstanding anything in this paragraph (7) to the contrary,
      implementation of the Succession Plan by itself shall not be a Good
      Reason.

(8)   A Change in Control (within the meaning of the Verizon Communications 2000
      Broad-Based Incentive Plan) occurs.

Except where clearly provided to the contrary, all capitalized terms used in
this Exhibit D shall have the definitions given to those terms in the Agreement.

                                                                     Exhibit D-2
<PAGE>   46

                                    EXHIBIT E

                                    COVENANTS

         1. NONCOMPETITION - In consideration for the benefits and agreements
described in the Agreement to which this Exhibit E is attached, you agree that:

                  (a) PROHIBITED CONDUCT - During the period of your employment
with the Company, and for the period ending 12 months after your termination of
employment for any reason from the Company, you shall not, without the prior
written consent of the CEO(s):

                           (1)      personally engage in Competitive Activities
                                    (as defined below); or

                           (2)      work for, own, manage, operate, control, or
                                    participate in the ownership, management,
                                    operation, or control of, or provide
                                    consulting or advisory services to, any
                                    individual, partnership, firm, corporation,
                                    or institution engaged in Competitive
                                    Activities, or any company or person
                                    affiliated with such person or entity
                                    engaged in Competitive Activities; provided
                                    that your purchase or holding, for
                                    investment purposes, of securities of a
                                    publicly-traded company shall not constitute
                                    "ownership" or "participation in ownership"
                                    for purposes of this paragraph so long as
                                    your equity interest in any such company is
                                    less than a controlling interest;

provided that this paragraph (a) shall not prohibit you from (i) being employed
by, or providing services to, a consulting firm, provided that you do not
personally engage in Competitive Activities or provide consulting or advisory
services to any individual, partnership, firm, corporation, or institution
engaged in Competitive Activities, or any company or person affiliated with such
person or entity engaged in Competitive Activities, or (ii) engaging in the
private practice of law as a sole practitioner or as a partner in (or as an
employee of or counsel to) a law firm in accordance with applicable legal and
professional standards.

                  (b) COMPETITIVE ACTIVITIES - For purposes of the Agreement to
which this Exhibit E is attached, "Competitive Activities" means business
activities relating to products or services of the same or similar type as the
products or services (1) which are sold (or, pursuant to an existing business
plan, will be sold) to paying customers of the Company, and (2) for which you
then have responsibility to plan, develop, manage, market, or oversee, or had
any such responsibility within your most recent 24 months of employment with the
Company. Notwithstanding the

                                                                     Exhibit E-1
<PAGE>   47

previous sentence, a business activity shall not be treated as a Competitive
Activity if the geographic marketing area of the relevant products or services
sold by you or a third party does not overlap with the geographic marketing area
for the applicable products and services of the Company.

         2. INTERFERENCE WITH BUSINESS RELATIONS - During the period of your
employment with the Company, and for a period ending with the expiration of 12
months following your termination of employment for any reason from the Company,
you shall not, without the written consent of the CEO(s):

                           (a)      recruit or solicit any employee of the
                                    Company for employment or for retention as a
                                    consultant or service provider;

                           (b)      hire or participate (with another company or
                                    third party) in the process of hiring (other
                                    than for the Company) any person who is then
                                    an employee of the Company, or provide names
                                    or other information about Company employees
                                    to any person or business (other than the
                                    Company) under circumstances that could lead
                                    to the use of that information for purposes
                                    of recruiting or hiring;

                           (c)      interfere with the relationship of the
                                    Company with any of its employees, agents,
                                    or representatives;

                           (d)      solicit or induce, or in any manner attempt
                                    to solicit or induce, any client, customer,
                                    or prospect of the Company (1) to cease
                                    being, or not to become, a customer of the
                                    Company or (2) to divert any business of
                                    such customer or prospect from the Company;
                                    or

                           (e)      otherwise interfere with, disrupt, or
                                    attempt to interfere with or disrupt, the
                                    relationship, contractual or otherwise,
                                    between the Company and any of its
                                    customers, clients, prospects, suppliers,
                                    consultants, or employees.

         3. RETURN OF PROPERTY; INTELLECTUAL PROPERTY RIGHTS - You agree that on
or before your termination of employment for any reason with the Company, you
shall return to the Company all property owned by the Company or in which the
Company has an interest, including files, documents, data and records (whether
on paper or in tapes, disks, or other machine-readable form), office equipment,
credit cards, and employee identification cards. You acknowledge that the
Company is the rightful owner of any programs, ideas, inventions, discoveries,
patented or copyrighted material, or trademarks that you may have originated or
developed, or assisted in originating or developing, during your period of
employment with the Company, where any such origination or development involved
the use of Company time or resources, or the exercise of your responsibilities
for or on behalf of the

                                                                     Exhibit E-2
<PAGE>   48

Company. You shall at all times, both before and after termination of
employment, cooperate with the Company in executing and delivering documents
requested by the Company, and taking any other actions, that are necessary or
requested by the Company to assist the Company in patenting, copyrighting, or
registering any programs, ideas, inventions, discoveries, patented or
copyrighted material, or trademarks, and to vest title thereto in the Company.

         4. PROPRIETARY AND CONFIDENTIAL INFORMATION - You shall at all times
preserve the confidentiality of all proprietary information and trade secrets of
the Company, except to the extent that disclosure of such information is legally
required. "Proprietary information" means information that has not been
disclosed to the public and that is treated as confidential within the business
of the Company, such as strategic or tactical business plans; undisclosed
financial data; ideas, processes, methods, techniques, systems, patented or
copyrighted information, models, devices, programs, computer software, or
related information; documents relating to regulatory matters and correspondence
with governmental entities; undisclosed information concerning any past,
pending, or threatened legal dispute; pricing and cost data; reports and
analyses of business prospects; business transactions that are contemplated or
planned; research data; personnel information and data; identities of users and
purchasers of the Company's products or services; and other confidential matters
pertaining to or known by the Company, including confidential information of a
third party that you know or should know the Company is bound to protect.

         5. DEFINITIONS - Except where clearly provided to the contrary, all
capitalized terms used in this Exhibit E shall have the definitions given to
those terms in the Agreement to which this Exhibit E is attached.

                                                                     Exhibit E-3<PAGE>   1
                                                                     EXHIBIT 10b

                                                     [VERIZON LOGO]

                                                     1095 Avenue of the Americas
                                                     New York, NY 10036

October 3, 2000

Ms. Mary Beth Bardin
[Address]
[Address]

Dear Mary Beth:

         We are pleased to offer you this employment agreement (the "Agreement")
with Verizon Communications Inc. ("Verizon"). For purposes of this Agreement,
the term "Company" means Verizon, all corporate subsidiaries and other companies
affiliated with Verizon, all companies in which Verizon has an ownership or
other proprietary interest of more than 10 percent, and their successors and
assigns.

         The opportunities and challenges facing the Company are enormous and
exciting. Both as a new organization and as a vigorous competitor in the most
dynamic and innovative industry in history, the Company needs extraordinarily
talented and committed leaders. This Agreement and the valuable array of
wealth-creation opportunities it provides reflect our view that you meet this
high standard.

         We value you and the leadership, vision, and commitment you bring to
the Company. We are excited by the prospect of having you as a key member of our
leadership team. We look forward to working with you as we chart the course of
our new organization at the beginning of a new century.

         The terms and conditions of this Agreement are set forth below.

         1. PURPOSE -- Verizon enters into this Agreement with you because the
rapidly-changing and increasingly global telecommunications market and the
recent Bell Atlantic -- GTE merger (the "Merger") require the Company to make
critical strategic, marketing, and technical decisions. These decisions by the
Company will be based, in whole or in part, on confidential analyses of the
evolving telecommunications market, confidential assessments of the technical
capabilities and strategic plans of the Company and competing businesses, and
confidential or proprietary information regarding the Company's technology,
resources, and business opportunities or other confidential or proprietary
information relating to the

<PAGE>   2

Ms. Mary Beth Bardin
October 3, 2000
Page 2

Company's business. Verizon seeks by this Agreement to ensure that you remain a
part of the executive management team that plays a central role in this
decision-making process.

         In consideration for your entering into this Agreement, including the
restrictions on the disclosure and use of confidential or proprietary
information and the limitations on your engaging in competitive activities, the
Company is providing you with the security of a fixed-term agreement, short- and
long-term award opportunities, and other benefits.

         2. GENERAL -- Under this Agreement, you shall continue as a senior
executive of the Company. As a senior executive, you shall report to the Chief
Executive Officers (or, if only one person holds that position, the Chief
Executive Officer) of Verizon (the "CEO(s)").

         3. TERM -- The term of employment under this Agreement ("Term of
Employment") shall commence on July 1, 2000, and end on June 30, 2002.

         4. DUTIES AND RESPONSIBILITIES -- You shall serve as a senior executive
of the Company in such capacities, with such titles and authorities, as the
CEO(s) or his/their successor may from time to time prescribe, and you shall
perform all duties incidental to such positions, shall cooperate fully with the
CEO(s) or his/their successor, and shall work cooperatively with the other
officers of the Company. You may retain your current executive assistant, but
the cost of retaining such assistant shall be financed by the Public Affairs &
Communications budget. You shall continue to devote your entire business skill,
time, and effort diligently to the affairs of the Company in accordance with the
duties assigned to you, and you shall perform all such duties, and otherwise
conduct yourself, in a manner reasonably calculated in good faith by you to
promote the best interests of the Company. During the Term of Employment, except
to the extent specifically permitted in writing by the CEO(s) or his/their
successor and except for memberships on boards of directors that you hold on the
date of this Agreement, you shall not, directly or indirectly, render any
services of a business, commercial, or professional nature to any other person
or organization other than the Company or a person or organization in which the
Company has a financial interest, whether or not the services are rendered for
compensation.

         5. LOCATION -- During the Term of Employment, you shall perform
services for the Company at its New York City headquarters and, until June 30,
2001, at Verizon's offices in Dallas, Texas, or at any other location designated
by the Company as necessary or appropriate for the discharge of your
responsibilities

<PAGE>   3

Ms. Mary Beth Bardin
October 3, 2000
Page 3

under this Agreement. In the event of any change in your principal work
location, you shall be eligible for relocation assistance under the terms of any
Company relocation policy applicable to other senior executives of the Company
in your salary band at the time of such relocation.

         6. BASE SALARY -- During the Term of Employment, your annual base
salary shall not be less than $ 400,000 per year; provided that if you are
granted a merit increase in your base salary, your base salary shall not
thereafter be reduced below that increased level during the Term of Employment.
After this Agreement has been in effect for 18 months, the Human Resources
Committee of Verizon's Board of Directors or its designee shall review your base
salary at least annually.

         7. SHORT-TERM AND LONG-TERM BONUS OPPORTUNITIES -- During the Term of
Employment, the Company shall provide you with annual short-term and long-term
bonus opportunities equivalent to those available to other senior executives of
the Company in your salary band. Your annual short-term bonus opportunity shall
be prorated for the year 2000 to reflect the six-month duration of the Agreement
during 2000, and your annual long-term bonus opportunity shall become effective
beginning in 2001. The value of your annual short-term bonus opportunity shall
not be less than 75 percent of your then-current base salary. The value of your
annual long-term bonus opportunity shall not be less than 425 percent of your
then-current base salary.

         8. FOUNDERS' GRANT -- You shall receive a Founders' Grant of options to
purchase 130,000 shares of Verizon common stock. The Founders' Grant is
contingent on your timely execution of this Agreement and your election to
participate in the Special Retention Account Program described in paragraph 11
("Special Retention Account Program"). The terms of the Founders' Grant are set
forth in the instrument governing the Founders' Grant attached hereto as Exhibit
A, which is incorporated herein by reference. If you do not timely execute this
Agreement and timely elect to participate in such Special Retention Account
Program, you shall not receive the Founders' Grant.

         9. PERFORMANCE SHARE RETENTION UNIT GRANT -- You shall receive a
Performance Share Retention Unit Grant with respect to 30,000 shares of Verizon
common stock. The Performance Share Retention Unit Grant is contingent on your
timely execution of this Agreement and your election to participate in the
Special Retention Account Program described in paragraph 11 ("Special Retention
Account Program"). The terms of the Performance Share Retention Unit Grant are
set forth in the Performance Share Retention Unit Grant Agreement attached
hereto as Exhibit B, which is incorporated herein by reference. Your rights
under the

<PAGE>   4

Ms. Mary Beth Bardin
October 3, 2000
Page 4

Performance Share Retention Grant following the termination of your employment
shall be governed by such Performance Share Retention Grant Agreement, rather
than by the terms of paragraph 13 ("Termination of Employment"). If you do not
timely execute this Agreement and timely elect to participate in such Special
Retention Account Program, you shall not receive the Performance Share Retention
Unit Grant.

         10. BENEFITS AND PERQUISITES -- (a) IN GENERAL - For the immediate
future, you shall --

               (1)     participate in the tax-qualified and nonqualified
                       retirement plans in which you currently participate;

               (2)     be eligible for the perquisites identified in
                       subparagraph (b), below; and

               (3)     participate in the other employee benefit plans,
                       programs, and policies in which you currently
                       participate, including medical, dental, and life
                       insurance plans;

provided that the Company retains the right to amend or terminate any benefit
plan, policy, program, or perquisite either as part of the process of providing
uniform retirement benefits to former Bell Atlantic and GTE employees or in the
normal course of business.

             (b) PERQUISITES -- The perquisites referred to in subparagraph (a),
above, are the following:

               (1)     FLEXIBLE SPENDING ACCOUNT: A flexible spending account of
                       $26,000 per year shall be available for such items as
                       club initiation fees, club memberships, and automobile
                       payments. The available balance in the account shall be
                       allocated to you in monthly installments.

               (2)     FINANCIAL PLANNING: You shall be eligible for the
                       Company's financial planning and services program. If you
                       are already using a vendor other than the vendor used by
                       the Company's financial planning and services program,
                       and you wish to continue using that other vendor, your
                       are eligible for reimbursement of the cost

<PAGE>   5

Ms. Mary Beth Bardin
October 3, 2000
Page 5

                       of using that other vendor up to an annual maximum of
                       $9,000.

               (3)     COMPANY AIRCRAFT: You shall be eligible to use Company
                       aircraft for business travel, subject to the availability
                       of the aircraft.

               (4)     FIRST-CLASS AIR TRAVEL: When Company aircraft are not
                       available for business travel, you shall be eligible for
                       first-class commercial air travel.

               (5)     CAR SERVICE: You shall be eligible to use the Company's
                       car service for business travel.

               (6)     HOME SECURITY: You shall be eligible for home security on
                       an as-needed basis, consistent with Company policy as in
                       effect from time to time.

               (7)     HOME OFFICE EQUIPMENT: You shall be eligible for home
                       office equipment (e.g., computer, fax machine, business
                       line with long distance, and internet access) on an
                       as-needed basis, consistent with Company policy as in
                       effect from time to time.

               (8)     CELLULAR TELEPHONE: You shall be provided with cellular
                       telephone equipment and service.

               (9)     NEW YORK APARTMENT: The Company shall reimburse you for
                       the cost of leasing a three-bedroom apartment in
                       Manhattan from July 1, 2000, through June 30, 2001.

               (10)    NEW COMPANY SHUTTLE: You, your husband, your son, and
                       your mother may use the Company shuttle to travel between
                       Dallas and New York between July 1, 2000, and June 30,
                       2001, subject to the availability of the shuttle.

               (11)    OTHER TRAVEL: The Company will reimburse you for the cost
                       of one round-trip coach airfare between Dallas and New
                       York for your husband, your son, and your mother during
                       each month between July 1, 2000, and

<PAGE>   6

Ms. Mary Beth Bardin
October 3, 2000
Page 6

                       June 30, 2001, in which the Company shuttle is not
                       available to them.

             (c) ANNUAL PHYSICAL -- You are encouraged to take an annual
physical examination from a physician at the Company's expense and to certify in
writing to the Company's designee each year (1) that you have had the
examination and (2) the nature and extent of any medical impairments that
prevent you from currently performing the essential functions of your position.

         11. SPECIAL RETENTION ACCOUNT PROGRAM -- By executing this Agreement,
you waive all of your rights under your Executive Severance Agreement with GTE
Service Corporation, dated June 4, 1998 (the "ESA"). In lieu of the benefits
previously provided to you under your ESA, the Company shall establish a Special
Retention Account on your behalf under the GTE Executive Salary Deferral Plan.
The balance in your Special Retention Account as of January 1, 2000, is
$896,800, and effective beginning January 1, 2000, your Special Retention
Account shall be credited with interest at the Moody's Rate (as defined by the
GTE Executive Salary Deferral Plan or any successor thereto). You shall also be
eligible for such other benefits as are provided under the GTE Executive Salary
Deferral Plan to employees with Special Retention Accounts. A copy of the
applicable provisions of the GTE Executive Salary Deferral Plan relating to the
Special Retention Account is attached hereto as Exhibit C, which is incorporated
herein by reference. Your rights to the balance in your Special Retention
Account following the termination of your employment shall be governed by the
applicable provisions of the GTE Executive Salary Deferral Plan, rather than by
the terms of paragraphs 13 ("Termination of Employment") and 14 ("Release").

         12. EXCISE TAX GROSS-UP -- Under certain circumstances you may become
entitled to a gross-up payment with respect to the excise tax imposed by section
4999 of the Internal Revenue Code (the "Code"). The terms governing the gross-up
payment are set forth in Exhibit D, which is incorporated herein by reference.

         13. TERMINATION OF EMPLOYMENT -- (a) VOLUNTARY TERMINATION BY YOU --
You may terminate your employment under this Agreement for a reason other than
Retirement (as defined in subparagraph (c), below) at any time by giving the
Chief Executive Officers (or, if only one person holds that position, the Chief
Executive Officer) of the Company (the "CEO(s)") written notice of intent to
terminate, delivered at least 30 calendar days before the effective date of such
termination (such period not to include vacation). The termination shall
automatically become effective upon the expiration of the 30-day notice period.
Upon the effective date of such termination, your base salary and any other
Company benefits and perquisites

<PAGE>   7

Ms. Mary Beth Bardin
October 3, 2000
Page 7

shall cease to accrue, you shall forfeit all then-outstanding stock options, and
you shall forfeit all rights under this Agreement which as of the relevant date
have not yet been earned. A termination of employment in accordance with this
subparagraph (a) shall be deemed a "Voluntary Termination."

             (b) TERMINATION DUE TO DEATH OR DISABILITY -- If, during the Term
of Employment, you terminate employment because of death or disability (as
defined under the Company-sponsored long-term disability plan that applies to
you at the time your employment is so terminated), the Company shall make a
lump-sum cash payment to you equal to your base salary and short-term bonus (at
100% of target) for the remaining Term of Employment, reduced by any amounts
payable to you during the remaining Term of Employment under Company-sponsored
disability plans, you shall be entitled to accelerated vesting of all
outstanding stock options, and you shall be entitled to exercise all
then-outstanding stock options until the earlier of (1) the fifth anniversary of
the date your employment terminates (or any later date prescribed by the terms
of the option relating to termination of employment) or (2) the expiration of
the option; provided that if you terminate employment because of death, your
rights under this subparagraph (b) shall pass to your estate. For this purpose,
your base salary shall be based on your base salary rate in effect immediately
before your employment terminated.

             (c) RETIREMENT -- If, during the Term of Employment, you terminate
employment by reason of Retirement (as defined below), you shall be entitled to
a pro-rated portion of any short-term and long-term bonuses (when and to the
extent that they are earned) and, except as otherwise provided in subparagraph
(g) ("Mandatory Retirement"), accelerated vesting of all outstanding stock
options (other than the Founders' Grant), and except as otherwise provided in
subparagraph (g) ("Mandatory Retirement"), you shall be entitled to exercise all
then-outstanding stock options (excluding nonvested Founders' Grant options)
until the earlier of (1) the fifth anniversary of the date your employment
terminates (or any later date prescribed by the terms of the option relating to
termination of employment) or (2) the expiration of the option. For purposes of
this Agreement, "Retirement" means retirement under the terms of the Verizon
Communications 2000 Broad-Based Incentive Plan. Except as provided by the
preceding provisions of this subparagraph (c), upon the effective date of your
Retirement, your base salary and any other Company benefits and perquisites
shall cease to accrue; provided that you shall otherwise be eligible to receive
any and all compensation and benefits for which a similarly situated senior
executive would be eligible under the applicable provisions of the compensation
and benefit plans in which he is then eligible to participate, as those plans
may be amended from time to time.

<PAGE>   8

Ms. Mary Beth Bardin
October 3, 2000
Page 8

             (d) TERMINATION FOR GOOD REASON -- (1) You may terminate your
employment under this Agreement for Good Reason by giving the CEO(s), at least
30 calendar days' (exclusive of vacation days) in advance of such termination
(the Notice Period"), written notice of your intent to so terminate, setting
forth in reasonable detail the facts and circumstances deemed to provide a basis
for such termination. For purposes of this Agreement, "Good Reason" means a
material breach by the Company of the terms and conditions of this Agreement, a
material reduction in your overall compensation opportunities, or your
assignment to a new principal work location that is more than 50 miles from your
previous principal work location (or if before July 1, 2001, your assignment to
a new principal work location if such assignment results in your failing to have
two principal work locations, one of which is located within 50 miles of New
York City, and a one of which is located within 50 miles of Dallas, Texas). A
"Good Reason" shall not occur merely because of a change in the individual (or
position) to whom (or to which) you report.

               (2) Notwithstanding the foregoing, the Company shall have 15
calendar days from its receipt of such notice to cure the action specified in
the notice. In the event of a cure by the Company within the 15-day period, the
action in question shall not constitute Good Reason.

               (3) Except as provided in subparagraph (d)(2), above, at the end
of the Notice Period, the Good Reason termination shall take effect, and your
obligation to serve the Company, and the Company's obligation to employ you,
under the terms of this Agreement shall terminate simultaneously, and you shall
be deemed to have incurred an Involuntary Termination Without Cause, with the
consequences described in subparagraph (e), below; provided that your rights
under this subparagraph (d) are contingent on your execution of a release in
accordance with paragraph 14 ("Release").

               (4) If you do not fulfill the notice and explanation requirements
imposed by this subparagraph (d), the resulting termination of employment shall
be deemed a Voluntary Termination.

             (e) INVOLUNTARY TERMINATION WITHOUT CAUSE -- The Company may
terminate your employment under this Agreement at any time and for any reason.
However, if the Company terminates your employment for any reason other than
death, disability, or Cause (as defined in subparagraph (f), below), such
termination shall be deemed an Involuntary Termination by the Company, and you
shall be entitled to receive the following payments and benefits in lieu of any
payment or benefit otherwise provided pursuant to paragraphs 6 ("Base Salary")
through 10 ("Benefits And Perquisites"):

<PAGE>   9

Ms. Mary Beth Bardin
October 3, 2000
Page 9

               (1)     The Company shall make a lump-sum cash severance payment
                       to you equal to the excess of (i) 200% of the sum of your
                       then-current annual base salary and your then-current
                       target short-term bonus, over (ii) the sum of your
                       then-current balance in your Special Retention Account,
                       as determined under the GTE Executive Salary Deferral
                       Plan, and any amounts paid or payable to you under any
                       Company-sponsored severance plan, program, policy,
                       contract, account, or arrangement during the remaining
                       Term of Employment;

               (2)     Your unvested stock options shall immediately vest, and
                       you may exercise all of your then-outstanding stock
                       options at any time up to the earlier of (i) the fifth
                       anniversary of the date your employment terminates (or
                       any later date prescribed by the terms of the option
                       relating to termination of employment) or (ii) the
                       expiration of the option; and

               (3)     You shall be eligible for outplacement services to the
                       extent that such services are then available to senior
                       executives in your salary band;

provided that your rights under this subparagraph (e) are contingent on your
execution of a release in accordance with paragraph 14 ("Release").

             (f) INVOLUNTARY TERMINATION FOR CAUSE -- (1) Nothing in this
Agreement prevents the Company from terminating your employment under this
Agreement for Cause. In the event of your termination for Cause, the Company
shall pay you your full accrued base salary and accrued vacation time through
the date of your termination, you shall forfeit all then-outstanding stock
options if you are not eligible for Retirement at the time of your termination,
and the Company shall have no further obligations under this Agreement; provided
that you shall otherwise be eligible to receive any and all compensation and
benefits for which a similarly situated senior executive would be eligible under
the applicable provisions of the compensation and benefit plans in which he is
then eligible to participate, as those plans may be amended from time to time.

               (2) For purposes of this Agreement, "Cause" is defined as (i)
grossly incompetent performance or substantial or continuing inattention to or
neglect of the duties and responsibilities assigned to you; fraud,
misappropriation or embezzlement involving the Company or a material breach of
any provision

<PAGE>   10

Ms. Mary Beth Bardin
October 3, 2000
Page 10

incorporated in paragraph 15 ("Covenants"), as determined by the CEO(s) in
his/their discretion, or (ii) commission of any felony of which you are finally
adjudged guilty by a court of competent jurisdiction.

               (3) If the Company terminates your employment for Cause, the
Company shall provide you with a written statement of the grounds for such
termination within 10 business days after the date of termination.

             (g) MANDATORY RETIREMENT -- If you retire at or after age 65
because you are required to do so by the Company's mandatory retirement policy,
your retirement shall not be deemed an Involuntary Termination by the Company
for purposes of this Agreement, your unvested stock options shall immediately
vest, and you may exercise all of your then-outstanding stock options at any
time up to the earlier of (i) the fifth anniversary of the date your employment
terminates (or any later date prescribed by the terms of the option relating to
termination of employment) or (ii) the expiration of the option.

         14. RELEASE -- You shall not be entitled to any benefits under this
Agreement following the termination of your employment unless, at the time your
employment terminates, you execute a release satisfactory to the Company
releasing the Company, its affiliates, shareholders, directors, officers,
employees, representatives, and agents and their successors and assigns from any
and all employment-related claims you or your successors and beneficiaries might
then have against them (excluding any claims you might then have under this
Agreement, or any employee benefit plan that is subject to the vesting standards
imposed by the Employee Retirement Income Security Act of 1974, as amended).
This paragraph 14 shall not apply if your employment is terminated by reason of
your Retirement, disability, or death.

         15. COVENANTS -- In consideration for the benefits and agreements
described above, you agree to comply with the covenants set forth in Exhibit E
hereto, which is incorporated herein by reference.

         16. REQUEST FOR WAIVER -- Nothing in this Agreement bars you from
requesting, at the time of your termination of employment or at any time
thereafter, that the CEO(s), in his/their sole discretion, waive in writing the
Company's rights to enforce some or all of the provisions incorporated in
paragraph 15 ("Covenants").

         17. OTHER AGREEMENTS AND POLICIES -- The obligations imposed on you by
paragraph 15 ("Covenants") are in addition to, and not in lieu of, any and all
other

<PAGE>   11

Ms. Mary Beth Bardin
October 3, 2000
Page 11

policies and agreements of the Company regarding the subject matter of the
foregoing obligations.

         18. NONDUPLICATION OF BENEFITS -- No provision of this Agreement shall
require the Company to provide you with any payment, benefit, or grant that
duplicates any payment, benefit, or grant that you are entitled to receive under
any Company compensation or benefit plan, award agreement, or other arrangement.

         19. OTHER COMPANY PLANS -- Except to the extent otherwise explicitly
provided by this Agreement, any awards made to you under any Company
compensation or benefit plan or program shall be governed by the terms of that
plan or program and any applicable award agreement thereunder as in effect from
time to time. Notwithstanding the foregoing, you shall not be entitled to
participate in any Company compensation or benefit plan that is established
after your employment with the Company terminates, and except as specifically
provided in this Agreement, you shall not be entitled to any additional grants
or awards under any Company compensation or benefit plan after your employment
with the Company terminates. The amounts paid, provided, or credited under this
Agreement shall not be treated as compensation for purposes of determining any
benefits payable under any Company-sponsored pension, savings, life insurance,
or other employee benefit plan except to the extent provided by the terms of
such plan.

         20. FORFEITURE -- (a) If you breach any of the obligations incorporated
in paragraph 15 ("Covenants"), or engage in serious misconduct during the Term
of Employment that is contrary to written policies of the Company and is harmful
to the Company or its reputation, you shall forfeit (1) all interest and other
gains on compensation deferred under any Company-sponsored deferred compensation
arrangement (other than the Special Retention Account Program) to the extent
that such deferred compensation accrues after you execute this Agreement, and
(2) any unpaid incentive compensation (such as performance bonus awards under
the GTE Long-Term Incentive Plan) that you are otherwise entitled to receive.

             (b) The remedies available under this paragraph are in addition to,
and not in lieu of, the remedies available under paragraph 27 ("Additional
Remedies").

         21. NO DEEMED WAIVER -- Failure to insist upon strict compliance with
any of the terms, covenants, or conditions of this Agreement shall not be deemed
a waiver of such term, covenant, or condition, nor shall any waiver or
relinquishment of any right or power hereunder at any one or more times be
deemed a waiver or relinquishment of such right or power at any other time or
times.

<PAGE>   12

Ms. Mary Beth Bardin
October 3, 2000
Page 12

         22. TAXES -- The Company may withhold from any benefits payable under
this Agreement all taxes that the Company reasonably determines to be required
pursuant to any law, regulation, or ruling. However, it is your obligation to
pay all required taxes on any amounts and benefits provided under this
Agreement, including the benefits provided to you pursuant to paragraph 10(b)
("Perquisites"), regardless of whether withholding is required.

         23. CONFIDENTIALITY -- Except to the extent otherwise required by law,
you shall not disclose, in whole or in part, any of the terms of this Agreement.
This paragraph 23 does not prevent you from disclosing the terms of this
Agreement to your spouse or to your legal, tax, or financial adviser, provided
that you take all reasonable measures to assure that he or she does not disclose
the terms of this Agreement to a third party except as otherwise required by
law.

         24. GOVERNING LAW -- To the extent not preempted by federal law, the
provisions of this Agreement shall be construed and enforced in accordance with
the laws of the State of New York, excluding any conflicts or choice of law rule
or principle that might otherwise refer construction or interpretation of this
provision to the substantive law of another jurisdiction.

         25. ASSIGNMENT -- Verizon may, without your consent, assign its rights
and obligations under this Agreement to any entity that is a part of the
Company, and if Verizon makes such an assignment, all references in this
Agreement to Verizon (except for references to Verizon common stock) shall be
deemed to refer to the assignee. However, you may not assign your rights and
obligations under this Agreement.

         26. SEVERABILITY -- The agreements contained herein and within the
release prescribed by paragraph 14 ("Release") shall each constitute a separate
agreement independently supported by good and adequate consideration, and shall
each be severable from the other provisions of the Agreement and such release.
If an arbitrator or court of competent jurisdiction determines that any term,
provision, or portion of this Agreement or such release is void, illegal, or
unenforceable, the other terms, provisions, and portions of this Agreement or
such release shall remain in full force and effect, and the terms, provisions,
and portions that are determined to be void, illegal, or unenforceable shall
either be limited so that they shall remain in effect to the extent permissible
by law, or such arbitrator or court shall substitute, to the extent enforceable,
provisions similar thereto or other provisions, so as to provide to the Company,
to the fullest extent permitted by applicable law, the benefits intended by this
Agreement and such release.

<PAGE>   13

Ms. Mary Beth Bardin
October 3, 2000
Page 13

         27. ADDITIONAL REMEDIES -- In addition to any other rights or remedies,
whether legal, equitable, or otherwise, that each of the parties to this
Agreement may have, you acknowledge that

             (a) The covenants incorporated in paragraph 15 ("Covenants") are
essential to the continued good will and profitability of the Company;

             (b) You have broad-based skills that will serve as the basis for
employment opportunities that are not prohibited by the covenants incorporated
in paragraph 15 ("Covenants");

             (c) When your employment with the Company terminates, you shall be
able to earn a livelihood without violating any of the terms of this Agreement;

             (d) Irreparable damage to the Company shall result in the event
that the covenants incorporated in paragraph 15 ("Covenants") are not
specifically enforced and that monetary damages will not adequately protect the
Company from a breach of these paragraphs of the Agreement;

             (e) If any dispute arises concerning the violation by you of the
covenants incorporated in paragraph 15 ("Covenants"), an injunction may be
issued restraining such violation pending the determination of such controversy,
and no bond or other security shall be required in connection therewith;

             (f) Such covenants shall continue to apply after any expiration,
termination, or cancellation of this Agreement; and

             (g) Your breach of any of such covenants shall result in your
immediate forfeiture of all rights under this Agreement.

         28. SURVIVAL -- The provisions of paragraphs 15 ("Covenants") through
30 ("Entire Agreement") shall survive the Term of Employment. In addition, if
your employment continues after the Term of Employment, you shall be subject to
the obligations imposed by each of such paragraphs with respect to such
employment. Any obligations that the Company has incurred under this Agreement
to provide benefits that have vested under the terms of this Agreement
(including the Company's obligations under paragraph 13(c) ("Retirement")) shall
likewise survive the Term of Employment. Except as provided by the preceding
provisions of this paragraph 28, the terms of your employment after the end of
the Term of Employment shall not be governed by this Agreement.

<PAGE>   14

Ms. Mary Beth Bardin
October 3, 2000
Page 14

         29. ARBITRATION -- Any dispute arising out of or relating to this
Agreement (except any dispute arising out of or relating to paragraph 15
("Covenants")), and any dispute arising out of or relating to your employment,
shall be settled by final and binding arbitration, which shall be the exclusive
means of resolving any such dispute, and the parties specifically waive all
rights to pursue any other remedy, recourse, or relief. With respect to disputes
by the Company arising out of or relating to paragraph 15 ("Covenants"), the
Company has retained all its rights to legal and equitable recourse and relief,
including but not limited to injunctive relief, as referred to in paragraph 27
("Additional Remedies"). The arbitration shall be expedited and conducted in the
State of New York pursuant to the Center for Public Resources ("CPR") Rules for
Non-Administered Arbitration in effect at the time of notice of the dispute
before one neutral arbitrator appointed by CPR from the CPR Panel of neutrals
unless the parties mutually agree to the appointment of a different neutral
arbitrator. The arbitration shall be governed by the Federal Arbitration Act, 9
U.S.C. sections 1-16, and judgment upon the award rendered by the arbitrator may
be entered by any court having jurisdiction. The finding of the arbitrator may
not change the express terms of this Agreement and shall be consistent with the
arbitrator's understanding of the findings a court of proper jurisdiction would
make in applying the applicable law to the facts underlying the dispute. In no
event whatsoever shall such an arbitration award include any award of damages
other than the amounts in controversy under this Agreement. The parties waive
the right to recover, in such arbitration, punitive damages. Each party hereby
agrees that New York City is the proper venue for any litigation seeking to
enforce any provision of this Agreement or to enforce any arbitration award
under this paragraph 29, and each party hereby waives any right it otherwise
might have to defend, oppose, or object to, on the basis of jurisdiction, venue,
or forum nonconveniens, a suit filed by the other party in any federal or state
court in New York City to enforce any provision of this Agreement or to enforce
any arbitration award under this paragraph 29. Each party also waives any right
it might otherwise have to seek to transfer from a federal or state court in New
York City a suit filed by the other party to enforce any provision of this
Agreement or to enforce any arbitration award under this paragraph 29.

         30. ENTIRE AGREEMENT -- Except for the terms of the compensation and
benefit plans in which you participate, this Agreement, including the Exhibits
hereto, sets forth the entire understanding of you and the Company, and
supersedes all prior agreements and communications, whether oral or written,
between the Company (or GTE or Bell Atlantic or any of their respective
subsidiaries) and you regarding the subject matter of this Agreement, including
your ESA and any severance arrangement provided under a merger agreement. This
Agreement shall not be modified except by written agreement of you and Verizon.

<PAGE>   15

Ms. Mary Beth Bardin
October 3, 2000
Page 15

Mary Beth, we believe that this Agreement provides you and your family with both
financial security and great opportunity as our industry and the Company evolve.
We recognize that the challenges facing us are formidable and that you will be
assuming very substantial responsibilities in meeting those challenges. It is
our hope that this Agreement provides you with opportunities commensurate with
the commitment that we expect from you. Please indicate your acceptance by
signing below and returning the signed Agreement to us within ten business days
after your receipt of this Agreement.

Sincerely yours,

Charles R. Lee                       Ivan G. Seidenberg

           Co-Chief Executive Officers

cc: E. Singer

I agree to the terms described above.

-----------------------------------------------
Mary Beth Bardin

Attachments:     Exhibit A -- Founders' Grant
                 Exhibit B -- Performance Share Retention Unit Grant
                 Exhibit C -- Special Retention Account Program
                 Exhibit D -- Excise Tax Gross-Up
                 Exhibit E -- Covenants

<PAGE>   16

                                                                       EXHIBIT A

                           VERIZON COMMUNICATIONS INC.

                     FOUNDERS' GRANT STOCK OPTION AGREEMENT

         AGREEMENT between Verizon Communications Inc. ("Verizon") and the
participant identified on the attached signature page (the "Participant").

1.   Purpose of Agreement. The purpose of this Agreement is to provide a
     one-time grant of a stock option to the Participant in light of the merger
     of Bell Atlantic Corporation and GTE Corporation and the creation of
     Verizon Communications Inc. This grant shall be known as the "Founders'
     Grant."

2.   Agreement. This Agreement is entered into pursuant to the terms of the plan
     identified on the attached signature page (the "Plan") and evidences the
     grant of a nonqualified stock option (the "Option") to the Participant to
     purchase shares of Verizon's Common Stock ("Common Stock") pursuant to the
     Plan. This Option is not an incentive stock option. The Option and this
     Agreement are subject to the terms and provisions of the Plan. (The
     Participant may request a copy of the Plan from the Verizon Communications
     Inc. Executive Compensation and Benefits Department.) By executing this
     Agreement, the Participant agrees to be bound by the terms and provisions
     of the Plan, by the actions of the Plan Administrator, by the actions of
     the Human Resources Committee of Verizon's Board of Directors or any
     successor thereto (the "Committee") or any designee of the Committee, and
     by the actions of Verizon's Board of Directors pursuant to the Plan.

3.   Contingency. The Founders' Grant is contingent on the Participant's timely
     execution of this Agreement and the agreement to which this Agreement is an
     exhibit. If the Participant does not timely execute this Agreement and the
     agreement to which this Agreement is an exhibit, the Participant shall not
     receive the Founders' Grant.

4.   Date. The date of the grant of the Option is specified on the attached
     signature page.

5.   Number of Shares. The number of shares of Common Stock as to which the
     option is granted is specified on the attached signature page.

6.   Option Price. The option price per share is specified on the attached
     signature page.

<PAGE>   17

7.   (a) Option Period and Vesting Schedule. The period for which the Option is
         granted is until the earlier of June 30, 2010, or five years from the
         Participant's separation from employment with the Company under the
         circumstances described in subsections (b)(1) through (b)(6) (the
         "Option Period"). In no event shall the Option be exercisable after the
         Option Period, and the Option may expire earlier as set forth in
         Section 7(b) ("Separation from Employment"). Except as set forth in
         Section 7(b), the Option may not be exercised until June 30, 2003, when
         the Option shall become exercisable in full; provided that upon the
         occurrence of a Change in Control (as defined in the Plan), the Option
         shall be exercisable in full.

     (b) Separation from Employment. The Option may be terminated prior to the
         expiration of the Option Period, and the date when the Option may first
         be exercised may be modified, in accordance with the following terms
         and conditions:

         (1)  Voluntary Separation and Discharge for Cause. If the Participant
              quits or otherwise separates from the Company under circumstances
              not described in Section 7(b)(2) ("Retirement") through (b)(6)
              ("Death") below, or if the Participant is discharged from
              employment with the Company for Cause (as defined below) and
              subsection (b)(2) below does not apply, this subsection (b)(1)
              shall apply. If the Participant separates from the Company before
              the date on which the Option becomes exercisable under Section
              7(a), the Option shall be forfeited. If the Participant separates
              from the Company on or after the date on which the Option becomes
              exercisable under Section 7(a), the Option may be exercisable in
              full during the Option Period, i.e., until the earlier of June 30,
              2010, or five years from the Participant's separation from
              employment with the Company.

         (2)  Retirement. (A) If the Participant Retires (as defined below) and
              subsections (b)(3) through (b)(6) below do not apply, this
              subsection (b)(2) shall apply. Except as provided in subsection
              (b)(2)(B), below, if the Participant Retires before the date on
              which the Option becomes exercisable under Section 7(a), the
              Option shall be forfeited. If the Participant Retires on or after
              the date on which the Option becomes exercisable under Section
              7(a), the Option may be exercisable in full during the Option
              Period, i.e., until the earlier of June 30, 2010, or five years
              from the Participant's separation from employment with the
              Company.

                                                                     Exhibit A-2
<PAGE>   18

              (B) If the Participant retires at or after age 65 because the
              Participant is required to do so by the Company's mandatory
              retirement policy, the Option shall be immediately exercisable in
              full. In no event shall the Option be exercisable after the Option
              Period, i.e., after the earlier of June 30, 2010, or five years
              from the Participant's separation from employment with the
              Company.

         (3)  Involuntary Discharge Without Cause. If the Company discharges the
              Participant without Cause (as defined below), such as by reason of
              a Company-initiated, voluntary or involuntary, force management or
              force reduction program or initiative, the Option shall be
              immediately exercisable in full. In no event shall the Option be
              exercisable after the Option Period, i.e., after the earlier of
              June 30, 2010, or five years from the Participant's separation
              from employment with the Company. For purposes of this subsection
              (b)(3), a Participant's separation from employment with the
              Company occurs on the last day the Participant is on the payroll
              of the Company. This subsection (b)(3) shall not apply to a
              Participant whose employment is terminated for refusal to accept a
              reassignment that involves no relocation or downgrade.

         (4)  Termination for Good Reason. If the Participant terminates
              employment for Good Reason (as defined in the employment agreement
              to which this Agreement is an exhibit), the Option shall be
              immediately exercisable in full. In no event shall the Option be
              exercisable after the Option Period, i.e., after the earlier of
              June 30, 2010, or five years from the Participant's separation
              from employment with the Company. For purposes of this subsection
              (b)(4), a Participant's separation from employment with the
              Company occurs on the last day the Participant is on the payroll
              of the Company.

         (5)  Disability. If the Participant's separation from employment with
              the Company occurs as a result of total and permanent disability,
              as defined under the Company-sponsored long-term disability plan
              that applies to the Participant (or, if the Participant is not
              covered by a long-term disability plan, as defined in such plan or
              in such manner as the Plan Administrator determines), the Option
              shall be immediately exercisable in full. In no event shall the
              Option be exercisable after the Option Period, i.e., after the
              earlier of June 30, 2010, or five years from the Participant's
              separation from employment with the Company. For purposes of this

                                                                     Exhibit A-3
<PAGE>   19

              subsection (b)(5), a Participant's separation from employment with
              the Company occurs on the later of the last day the Participant is
              (i) on the payroll of the Company or (ii) on short-term
              disability.

         (6)  Death. If the Participant's separation from employment with the
              Company occurs as a result of death, the Option shall be
              immediately exercisable in full by the Participant's beneficiary.
              If the Participant dies after separation from employment with the
              Company, but while the Option is exercisable in accordance with
              subsections (b)(1) ("Voluntary Separation and Discharge for
              Cause") through (b)(5) ("Disability") above, the Participant's
              beneficiary may exercise the Option to the extent that the Option
              has become exercisable in accordance with such subsections. In no
              event shall the Option be exercisable after the Option Period,
              i.e., after the earlier of June 30, 2010, or five years from the
              Participant's separation from employment with the Company.

         (7)  Termination of Option. Upon the expiration of any period during
              which the Option is exercisable in accordance with the preceding
              provisions of this Section 7(b), the Option shall terminate and
              shall not thereafter be exercisable.

         (8)  Transfer. Transfer of employment from Verizon to a Related
              Company, from a Related Company to Verizon, or from one Related
              Company to another Related Company shall not constitute a
              separation from employment with the Company hereunder.

         (9)  Retirement. For purposes of this Section 7(b), "Retire" means (A)
              to retire with a right to an immediate normal retirement, early
              retirement or service pension under the Company-sponsored
              tax-qualified final average pay defined benefit pension plan
              (excluding from this definition any cash balance plan) in which
              the Participant actively participates, (B) if the Participant does
              not actively participate in such a tax-qualified final average pay
              defined benefit pension plan, to retire (i) after attaining normal
              retirement age under the Company-sponsored cash balance plan or
              nonqualified defined benefit pension plan in which the Participant
              actively participates, or (ii) with a combination of age and years
              of service (as calculated for retirement-eligibility purposes)
              that equals or exceeds any of the following combinations:

                                                                     Exhibit A-4

<PAGE>   20

<TABLE>
<CAPTION>
                AGE EQUAL TO OR                             SERVICE EQUAL TO OR
                 GREATER THAN:                                 GREATER THAN:
                 ------------                                  ------------

<S>                                                               <C>
                    Any age                                       30 years
                       50                                         25 years
                       55                                         20 years
                       60                                         15 years
                       65                                         10 years
</TABLE>

              or (C) retirement under any other circumstances determined in
              writing by the Plan Administrator.

         (10) Cause. For purposes of this Section 7(b), "Cause" is defined as
              (i) grossly incompetent performance or substantial or continuing
              inattention to or neglect of the duties and responsibilities
              assigned to the Participant; fraud, misappropriation or
              embezzlement involving the Company or a material breach of any
              provision incorporated in paragraph 15 ("Covenants") of the
              agreement to which this Agreement is an exhibit, as determined by
              the CEO(s) in his/their discretion, or (ii) commission of any
              felony of which the Participant is finally adjudged guilty by a
              court of competent jurisdiction.

8.   (a) Exercise. The Option may be exercised, in whole or in part, as
         permitted under this Agreement, by making payment in accordance with
         subsection (b), below, and by delivering to the Executive VP - Human
         Resources (the "EVP HR") or to any delegate of the EVP HR ("Delegate")
         a notice of exercise in the form approved by the EVP HR or in any other
         manner approved by the EVP HR. The Participant shall be informed in
         writing of the appointment, if any, of a Delegate.

     (b) Payment of Option Price. To exercise the Option, the Participant must
         pay the Option Price by one of the following methods:

         (1)  (i) check or wire transfer, (ii) surrender of Common Stock that
              has been held by the Participant for at least six months, or (iii)
              a combination of both (i) and (ii);

         (2)  subject to the prior written approval of the Committee, a recourse
              promissory note; or

         (3)  subject to the prior written approval of the EVP HR, the
              administrator of the stock option program may pay the Option

                                                                     Exhibit A-5

<PAGE>   21

              Price on behalf of the Participant subject to such terms and
              conditions as the administrator may impose.

         For purposes of an exchange of Common Stock in subsection (b)(1),
         above, the value of a share of Common Stock used to pay the Option
         Price shall be equal to the average of the high and low sales prices of
         shares of Common Stock traded on the New York Stock Exchange (or any
         other exchange or reporting system selected by the Committee) on the
         date the Option is exercised, or if there are no sales of Common Stock
         reported for that date, on the date or dates that the Committee
         determines, in its sole discretion, to be appropriate for purposes of
         valuation.

         The Participant may be charged an administrative fee or fees in
         connection with the exercise of the Option.

9. Notice and Date of Exercise. The notice of exercise shall indicate the number
of shares with respect to which the Option is being exercised. The Option may
not be exercised with respect to fractional shares. In addition, the Option may
not be exercised if the administrator of the stock option program determines
that, at the time of an attempted exercise, the fair market value of the shares
with respect to which the Option is being exercised is either below the Option
Price with respect to such shares or not sufficiently above such Option Price to
cover any applicable taxes and administrative fees. Subject to the conditions
and restrictions set forth in this Agreement, the date of exercise of the Option
shall be the later of (a) the date on which the notice of exercise in the
approved form is received in the office of the EVP HR or in the office of the
Delegate or (b) the date on which either (i) full payment of the Option Price
and any required tax withholding is received by the EVP HR or the Delegate or
(ii) the administrator of the stock option program is irrevocably committed to
make such payment. Notwithstanding the preceding sentence, no shares shall be
issued until full payment is received by the EVP HR or the Delegate. Upon the
exercise of the Option and receipt of full payment, Verizon shall, as soon as
practicable, issue or deliver certificates for the number of shares acquired
thereby, subject to the conditions and restrictions set forth in this Agreement.
If the Participant dies following the exercise of all or part of the Option, but
before issuance or delivery of the shares, such shares shall be issued or
delivered to the Participant's beneficiary.

10. Shareholder Rights. The Participant shall have no rights as a shareholder
with respect to shares of Common Stock to which the Option relates until the
date on which the Participant becomes the holder of record of such shares.
Except as provided by the Plan, no adjustment shall be made for dividends or
other rights for which the record date is prior to such date.

11. Amendment of Option. The Committee may not, without the written consent of
the Participant, revoke this Agreement insofar as it relates to the Option
granted

                                                                     Exhibit A-6

<PAGE>   22

hereunder, and may not without such written consent make or change any
determination or change any term, condition or provision affecting the Option if
the determination or change would materially and adversely affect the Option or
the Participant's rights thereto.

12. Assignment. The Option shall not be assignable or transferable except by
will or by the laws of descent and distribution. During the Participant's
lifetime, the Option may be exercised only by the Participant or by the
Participant's guardian or legal representative.

13. Beneficiary. The Participant shall designate a beneficiary in writing and in
such manner as is acceptable to the EVP HR or the Delegate. If the Participant
fails to so designate a beneficiary, or if no such designated beneficiary
survives the Participant, the Participant's beneficiary shall be the
Participant's beneficiary under the Company-paid group life insurance plan in
which the Participant participates at the time of the Participant's death. If
the Participant does not participate in a Company-paid group life insurance plan
at the time of the Participant's death, the Participant's beneficiary shall be
the Participant's estate.

14. Other Plans and Agreements. Any gain realized by the Participant pursuant to
this Agreement shall not be taken into account as compensation in the
determination of the Participant's benefits under any pension, savings, group
insurance, or other benefit plan maintained by the Company, except as determined
by the board of directors of Verizon or, in the case of a plan not maintained by
Verizon, the Related Company that maintains the plan. The Participant
acknowledges that receipt of this Agreement or any prior stock option agreement
shall not entitle the Participant to any other benefits under the Plan or any
other plans maintained by the Company.

15. Company and Related Company. For purposes of this Agreement, "Company" means
Verizon and Related Companies. "Related Company" means (i) any corporation,
partnership, joint venture or other entity in which Verizon holds a direct or
indirect ownership or proprietary interest of 50 percent or more, or (ii) any
corporation, partnership, joint venture or other entity in which Verizon holds
an ownership or proprietary interest of less than 50 percent but which, in the
discretion of the Committee, is treated as a Related Company for purposes of
this Agreement.

16. Employment Status. The grant of the Option shall not be deemed to constitute
a contract of employment between the Company and the Participant, nor shall it
constitute a right to remain in the employ of the Company.

17. Withholding. It shall be a condition to the issuance or delivery of shares
of Common Stock as to which the Option shall have been exercised that provisions
satisfactory to the Company shall have been made for payment of any taxes
reasonably determined by the Company or the Delegate to be required to be paid

                                                                     Exhibit A-7

<PAGE>   23

or withheld pursuant to any applicable law or regulation. The Participant may
irrevocably elect to have the minimum required amount of any withholding tax
obligation satisfied by (a) having shares withheld that are otherwise to be
issued or delivered to the Participant with respect to the exercise of the
Option, (b) delivering to the Company or the Delegate other shares of Common
Stock that have been held by the Participant for at least six months, or (c) any
other method approved by the EVP HR of which the Participant may be informed in
writing.

18. Securities Laws. If at the time of any exercise of the Option in whole or in
part, the Company deems it to be a violation of any federal or state securities
law or regulation to issue or deliver its shares pursuant to such exercise, the
Company, at its sole option, may reject such exercise and return the tender or
make application for such qualification or registration as the Company deems
advisable. The Company shall not be required to issue or deliver any shares of
Common Stock prior to the admission of such shares to listing on any stock
exchange on which the stock may then be listed and the completion of any
registration or qualification of such shares under any federal or state law or
rulings or regulations of any government body that the Company, in its sole
discretion, determines to be necessary or advisable.

19. Committee Authority. The Committee shall have complete discretion in the
exercise of its rights, powers, and duties under this Agreement. Any
interpretation or construction of any provision of, and the determination of any
question arising under, this Agreement shall be made by the Committee in its
sole discretion and shall be final, conclusive, and binding. The Committee may
designate any individual or individuals to perform any of its functions
hereunder.

20. Successors. This Agreement shall be binding upon, and inure to the benefit
of, any successor or successors of Verizon and the person or entity to whom the
Option may have been transferred by will, the laws of descent and distribution,
or beneficiary designation. All terms and conditions of this Agreement imposed
upon the Participant shall, unless the context clearly indicates otherwise, be
deemed, in the event of the Participant's death, to refer to and be binding upon
such last-mentioned person or entity.

21. Construction. This Agreement is intended to grant the Option upon the terms
and conditions authorized by the Plan. Any provisions of this Agreement that
cannot be so administered, interpreted, or construed shall be disregarded. In
the event that any provision of this Agreement is held invalid or unenforceable
by a court of competent jurisdiction, such provision shall be considered
separate and apart from the remainder of this Agreement, which shall remain in
full force and effect. In the event that any provision is held to be
unenforceable for being unduly broad as written, such provision shall be deemed
amended to narrow its application to the extent necessary to make the provision
enforceable according to applicable law and shall be enforced as amended.

                                                                     Exhibit A-8

<PAGE>   24

22. Defined Terms. Except where the context clearly indicates otherwise, all
capitalized terms used herein shall have the definitions ascribed to them by the
Plan, and the terms of the Plan shall apply where appropriate.

23. Execution of Agreement. The Participant shall indicate consent to the terms
of this Agreement and the Plan by executing the attached signature page which is
made a part of this Agreement.

24. Confidentiality. Except to the extent otherwise required by law, the
Participant shall not disclose, in whole or in part any of the terms of this
Agreement. This Section 24 does not prevent the Participant from disclosing the
terms of this Agreement to the Participant's spouse or to the Participant's
legal, tax, or financial adviser, provided that the Participant take all
reasonable measures to assure that he or she does not disclose the terms of this
Agreement to a third party except as otherwise required by law.

                                                                     Exhibit A-9

<PAGE>   25

                                 SIGNATURE PAGE

By executing this page, the undersigned Participant agrees to be bound by the
terms of the Plan and the Founders' Grant Stock Option Agreement, the terms of
which are incorporated herein by reference, in connection with the following
grant to the Participant under the Plan:

<TABLE>
<S>                                                       <C>
NAME OF PARTICIPANT:                                      MARY BETH BARDIN

SOCIAL SECURITY NUMBER:                                   [SOCIAL SECURITY NUMBER]

DATE OF GRANT:                                            SEPT. 7, 2000

NUMBER OF SHARES:                                         130,000

OPTION PRICE:                                             43.34

PLAN FROM WHICH OPTIONS ARE AWARDED:                      1997 GTE LONG-TERM INCENTIVE PLAN
</TABLE>

IN WITNESS WHEREOF, Verizon Communications Inc., by its duly authorized Officer,
and the Participant have executed this Agreement.

                           VERIZON COMMUNICATIONS INC.

     By:
           -------------------------------           -------------------------
           Charles R. Lee                            Ivan G. Seidenberg

                              Co-Chief Executive Officers

                                                     -------------------------
                                                             Participant

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

Please indicate your acceptance by signing above and returning the signed
Agreement to us within ten business days after your receipt of this Agreement.

Please complete the Beneficiary Designation form on the back side.

<PAGE>   26

                                                                       EXHIBIT B

                           VERIZON COMMUNICATIONS INC.

                   PERFORMANCE SHARE RETENTION UNIT AGREEMENT

         AGREEMENT between Verizon Communications Inc. ("Verizon") and the
participant identified on the attached signature page (the "Participant").

         1. Purpose of Agreement. The purpose of this Agreement is to provide a
one-time grant of restricted stock units to the Participant, as a senior
management employee of Verizon, in light of the merger of GTE Corporation and
Bell Atlantic Corporation and the creation of Verizon Communications Inc. The
restricted stock units that are the subject of this grant shall be known as
"Performance Share Retention Units."

         2. Agreement. This Agreement is entered into pursuant to the terms of
the plan or plans specified on the attached signature page (the "Plan"), and
evidences the grant of a stock-based award in the form of restricted stock units
("RSUs") pursuant to the Plan. The Agreement is subject to the terms and
provisions of the Plan. By execution of this Agreement, the Participant
acknowledges receipt of a copy of the Plan and further agrees to be bound
thereby and by the actions of the Human Resources Committee of Verizon's Board
of Directors or any successor thereto (the "Committee") and Verizon's Board of
Directors pursuant to the Plan.

         3. Contingency. The grant of Performance Share Retention Units is
contingent on the Participant's timely execution of this Agreement and the
agreement to which this Agreement is an exhibit. If the Participant does not
timely execute this Agreement and the agreement to which this Agreement is an
exhibit, the Participant shall not receive the grant of Performance Share
Retention Units.

         4. Number of Units. The Participant is granted the number of RSUs
specified on the attached signature page as of July 1, 2000. An RSU is a
hypothetical share of Verizon's Common Stock. The value of an RSU on any given
date shall be equal to the closing price of Verizon's Common Stock as of such
date. An RSU does not represent an equity interest in Verizon and carries no
voting rights. A Dividend Equivalent Unit ("DEU") or fraction thereof shall be
added to each RSU each time that a dividend is paid on Verizon's Common Stock.
The amount of each DEU shall be equal to the dividend paid on a share of
Verizon's Common Stock. The DEU shall be converted into RSUs or fractions
thereof based upon the average of the high and low sales prices of Verizon's
Common Stock traded on the New York Stock Exchange on the dividend payment date
of each declared dividend on Verizon's Common Stock, and such RSUs or fractions
thereof shall be added to the Participant's RSU balance.

                                                                     Exhibit B-1

<PAGE>   27

         5. Grant Date. The Grant Date for this RSU grant shall be the Grant
Date specified on the attached signature page.

         6. Vesting.

              (a) For purposes of vesting, this RSU grant shall be divided into
         three tranches, each of which shall include the following percentage of
         the total number of RSUs granted pursuant to paragraph 4, above, and
         any additional RSUs that are attributable to DEUs on RSUs in that
         tranche:

<TABLE>
<CAPTION>
                 Tranche        Percentage of Initial RSUs
                 -------        --------------------------
<S>                             <C>
                    1                      50%
                    2                      25%
                    3                      25%
</TABLE>

              (b) Tranche 1.

                  (1) Tranche 1 shall vest on the basis of the Participant's
               continued employment with Verizon after the Grant Date. The
               vesting schedule for Tranche 1 shall be as set forth in the
               following table:

<TABLE>
                                                      Percentage to                   Aggregate
                      Years of Service                     Vest                  Percentage Vested
                      ----------------                -------------              -----------------
<S>                                                   <C>                       <C>

                        less than 3                         0%                             0%
                             3                             50%                            50%
                             4                             25%                            75%
                         5 or more                         25%                           100%
</TABLE>

                  (2) For purposes for the table set forth in subparagraph (1),
               above--

                       (i) "Years of Service" shall mean full years of
                  continuous employment with Verizon following June 30, 2000.
                  There shall be no proration or interpolation for partial years
                  of service.

                       (ii) "Percentage to Vest" shall mean the percentage of
                  Tranche 1 that first vests upon attainment of the applicable
                  period of service. It does not mean the aggregate percentage
                  of Tranche 1 that is vested at that time.

                                                                     Exhibit B-2

<PAGE>   28

                       (iii) "Aggregate Percentage Vested" shall mean the
                  aggregate percentage of Tranche 1 that is vested upon
                  completion of the specified period of service. It does not
                  mean the percentage of Tranche 1 that first becomes vested
                  upon completion of the specified period of service.

              (c) Tranche 2. Subject to continuous employment requirement set
         forth in paragraph 6(e), below, Tranche 2 shall vest based on the
         growth of Verizon's annual revenues as follows--

                  (1) As set forth in the following table, if Verizon's annual
              revenues in the "Target Year" exceed Verizon's revenues in the
              "Baseline Year" by the "Revenue Growth Goal" or more, the
              applicable percentage of Tranche 2 shall vest:

<TABLE>
<CAPTION>
                                                 Revenue                              Aggregate
                  Target        Baseline         Growth          Percentage           Percentage
                   Year            Year            Goal            to Vest              Vested
                  ------        --------        --------         ----------           ----------
<S>                             <C>             <C>              <C>                  <C>
                   2002            2000            15.5%              50%                  N/A
                   2003            2002            7.5%               25%                  N/A
                   2004            2003            7.5%               25%                  N/A

</TABLE>

                  (2) For purposes of the table set forth in subparagraph
              (c)(1), above--

                       (i) Revenues shall be determined by the Plan
                  Administrator.

                       (ii) "Percentage to Vest" shall mean the percentage of
                  Tranche 2 that first vests upon attainment of the applicable
                  Revenue Growth Goal. It does not mean the aggregate percentage
                  of Tranche 2 that is vested at that time.

                       (iii) The "Aggregate Percentage Vested" column is not
                  applicable to Tranche 2 because the vesting of each portion of
                  Tranche 2 is independent of the vesting of any other portion
                  of Tranche 2. If Verizon meets the Revenue Growth Goal for
                  Target Year 2003 or 2004, and the Participant satisfies the
                  continuous employment requirement of paragraph 6(e), below,
                  the applicable percentage of Tranche 2 shall vest whether or
                  not the portion of Tranche 2 related to an earlier Target Year
                  has vested.

                                                                     Exhibit B-3

<PAGE>   29

              (d) Tranche 3. Subject to continuous employment requirement set
         forth in paragraph 6(e), below, Tranche 3 shall vest based on growth of
         earnings per share of Verizon's common stock ("EPS") as follows--

                  (1) As set forth in the following table, if the EPS in the
              "Target Year" exceeds the EPS in the "Baseline Year" by the "EPS
              Growth Goal" or more, the applicable percentage of Tranche 3 shall
              be vested:

<TABLE>
<CAPTION>
                                                                                           Aggregate
                  Target        Baseline          EPS Growth         Percentage            Percentage
                   Year            Year               Goal            to Vest*              Vested
                  ------        --------          ----------       --------------         -----------
<S>                             <C>               <C>              <C>                    <C>
                   2002            2000               17%                 50%                 50%
                   2003            2000               31%              25% or 75%             75%
                   2004            2000              46.5%         25%, 50%, or 100%          100%
</TABLE>

              *This column is explained in paragraph 6(d)(2)(ii), below.

                  (2) For purposes of the table set forth in subparagraph
              (d)(1), above--

                       (i) EPS shall be determined by the Plan Administrator.

                       (ii) "Percentage to Vest" shall mean percentage of
                  Tranche 3 that first vests upon attainment of the applicable
                  EPS Growth Goal. It is stated in the alternative due to the
                  cumulative nature of the EPS Growth Goals for Tranche 3, all
                  of which use Baseline Year 2000. Subject to the continuous
                  employment requirement set forth in paragraph 6(e), the
                  "Percentage to Vest" of Tranche 3 shall be as follows--

                            (A) Target Year 2002. If the EPS Growth Goal for
                       Target Year 2002 is attained, 50% of Tranche 3 shall
                       vest.

                            (B) Target Year 2003. If the EPS Growth Goal for
                       Target Year 2003 is attained: (1) 25% of Tranche 3 shall
                       vest, and, (2) an additional 50% of Tranche 3 shall also
                       vest if the EPS Goal for Target Year 2002 was not
                       attained at the end of Target Year 2002.

                            (C) Target Year 2004. If the EPS Growth Goal for
                       Target Year 2004 is attained: (1) 25% of Tranche 3 shall
                       vest, (2) an additional 25% of Tranche 3 shall also

                                                                     Exhibit B-4

<PAGE>   30

                       vest if the EPS Goal for Target Year 2003 was not
                       attained at the end of Target Year 2003, and (3) an
                       additional 50% of Tranche 3 shall also vest if the EPS
                       Goal for Target Year 2002 was not attained at the end of
                       Target Year 2002 and the EPS Goal for Target Year 2003
                       was not attained at the end of Target Year 2003.

                       (iii) "Aggregate Percentage Vested" shall mean the
                  aggregate percentage of Tranche 3 that is vested upon
                  attainment of the applicable EPS Goal. It does not mean the
                  percentage of Tranche 3 that first becomes vested at that
                  time.

              (e) Continuous Employment Requirement.

                  (1) The percentage of Tranches 2 or 3 related to a Target Year
              shall vest only if the Participant is continuously employed by
              Verizon from the Grant Date until June 30th of the year after the
              applicable Target Year.

                  (2) There shall be no proration or interpolation for partial
              years of service--if the Participant does not satisfy the
              requirements of this paragraph 6(e), the Participant shall not
              vest in any RSUs related to a Target Year, notwithstanding any
              period of service during or after the Target Year or the
              attainment of the applicable Revenue Growth Goal or EPS Growth
              Goal.

              (f) Transfer. Transfer of employment from Verizon to a Related
         Company, from a Related Company to Verizon, or from one Related Company
         to another Related Company shall not constitute a separation from
         employment hereunder.

              (g) Vested RSUs shall not be forfeited.

         7. Payment. All payments under this Agreement shall be made in shares
of Verizon's Common Stock, except for any fractional shares, which shall be paid
in the form of cash. As soon as practicable after the Participant has become
vested in all or a portion of a tranche of RSUs, the value of RSUs in that
tranche or portion of the tranche shall be paid to the Participant (subject,
however, to any deferral application that the Participant has made under the
deferral plan then available to the Participant and procedures adopted by the
Plan Administrator). If the Participant dies before any payment due hereunder is
made, such payment shall be made to the Participant's beneficiary. Once a
payment has been made with respect to an RSU, the RSU shall be canceled.

         8. Early Cancellation/Accelerated Vesting of RSUs. Subject to the
provisions of paragraph 8(f) hereof, RSUs may vest or be forfeited before
vesting in accordance with paragraph 6 hereof as follows:

                                                                     Exhibit B-5

<PAGE>   31

              (a) Retirement, Voluntary Separation, or Termination for Cause. If
         the Participant retires, quits, or otherwise separates from employment
         under circumstances not described in subparagraphs (b) through (e),
         below, or is terminated for Cause, all then-unvested RSUs shall be
         canceled immediately, and shall not be payable, except to the extent
         the Committee decides otherwise. For purposes of this Agreement,
         "Cause" is defined as (i) grossly incompetent performance or
         substantial or continuing inattention to or neglect of the duties and
         responsibilities assigned to the Participant; fraud, misappropriation
         or embezzlement involving the Company or a material breach of any
         provision incorporated in paragraph 15 ("Covenants") of the employment
         agreement to which this Agreement is an exhibit, as determined by the
         CEO(s) in his/their discretion, or (ii) commission of any felony of
         which the Participant is finally adjudged guilty by a court of
         competent jurisdiction.

              (b) Involuntary Termination Without Cause. Notwithstanding the
         preceding provisions of this paragraph 8 or the continuous employment
         requirement set forth in paragraph 6(e), if the Participant is
         involuntarily terminated from employment other than for Cause--

                  (1) all then-unvested RSUs in Tranche 1 shall vest
              immediately;

                  (2) the then-unvested RSUs in Tranche 2 shall be subject to
              the vesting provisions set forth in paragraph 6(c), except that
              the continuous employment requirement set forth in paragraph 6(e)
              shall not apply; and

                  (3) the then-unvested RSUs in Tranche 3 shall be subject to
              the vesting provisions set forth in paragraph 6(d), except that
              the continuous employment requirement set forth in paragraph 6(e)
              shall not apply.

         All RSUs that vest pursuant to paragraphs 8(b)(1), 8(b)(2), or 8(b)(3)
         shall be payable at the time the RSUs would have been payable had the
         Participant been subject to and satisfied the continuous employment
         requirement set forth in paragraph 6(e).

         For purposes of this Agreement, the Participant shall not be considered
         to have been involuntarily terminated without Cause if his employment
         is terminated for refusal to accept a reassignment that involves no
         relocation or downgrade and paragraph 8(c) does not apply.

              (c) Mandatory Retirement. If, before all RSUs in a tranche have
         vested, the Participant retires at or after age 65 because the
         Participant is required to do so pursuant to the Company's mandatory
         retirement policy, the then-unvested RSUs in each tranche shall be
         subject to the vesting

                                                                     Exhibit B-6
<PAGE>   32

         provisions set forth in paragraph 8(b) (Involuntary Termination Without
         Cause), above.

              (d) Termination for Good Reason. If, before all RSUs in a tranche
         have vested, the Participant terminates employment for Good Reason (as
         defined in the employment agreement to which this Agreement is an
         exhibit), the then-unvested RSUs in each tranche shall be subject to
         the vesting provisions set forth in paragraph 8(b) (Involuntary
         Termination Without Cause), above.

              (e) Disability or Death. If, before all RSUs in a tranche have
         vested, the Participant separates from employment by reason of death or
         disability (as determined by the Committee), the then-unvested RSUs in
         each tranche shall be subject to the vesting provisions set forth in
         paragraph 8(b) (Involuntary Termination Without Cause), above.

              (f) Change in Control. Upon the occurrence of a Change in Control
         (as defined in the 2000 Verizon Communications Broad-Based Incentive
         Plan), all then-unvested RSUs shall vest and be payable immediately
         without regard to the Revenue Growth Goals or EPS Growth Goals that
         otherwise would apply to RSUs in Tranches 2 and 3, except that no
         portion of Tranche 2 shall vest if the Change in Control occurs after
         the end of a Target Year and the applicable Revenue Growth Goal was not
         attained for that Target Year.

              (g) Vesting Schedule. Except as provided in subparagraphs (b) or
         (c), above, nothing in this paragraph 8 shall accelerate the vesting
         schedule of RSUs prescribed by the provisions of paragraph 6 hereof.

         9. Shareholder Rights. The Participant shall have no rights as a
shareholder with respect to shares of Common Stock to which this grant relates
until the date on which the Participant becomes the holder of record of such
shares. Except as provided in the Plan or in this Agreement, no adjustment shall
be made for dividends or other rights for which the record date is prior to such
date.

         10. Extraordinary Events. In determining EPS or Revenue Growth, and for
other appropriate purposes under this Agreement, the Plan Administrator will
have the discretion to take into consideration any or all of the following: (a)
the effects of business combinations; (b) the effects of discontinued operations
(including loss on disposal of a line of business or class of customer); (c)
changes in accounting principles; (d) extraordinary items; (e) restructuring
charges; and (f) changes in tax law. Items (a) and (b) will be as defined in
accordance with Generally Accepted Accounting Principles ("GAAP"), and items (c)
through (f) will be as defined in accordance with GAAP and as defined and as
disclosed in the Company's financial statements.

                                                                     Exhibit B-7

<PAGE>   33

         11. Revocation or Amendment of Agreement. The Committee may not,
without the written consent of the Participant, revoke this Agreement insofar as
it relates to the RSUs granted hereunder, and may not without such written
consent make or change any determination or change any term, condition or
provision affecting the RSUs if the determination or change would materially and
adversely affect the Performance Share Retention Units or the Participant's
rights thereto.

         12. Assignment. The RSUs shall not be assignable or transferable except
by will or by the laws of descent and distribution. During the Participant's
lifetime, the RSUs may be deferred only by the Participant or by the
Participant's guardian or legal representative.

         13. Beneficiary. The Participant shall designate a beneficiary in
writing and in such manner as is acceptable to the Executive VP - Human
Resources (the "EVP HR") or to any delegate of the EVP HR. If the Participant
fails to so designate a beneficiary, or if no such designated beneficiary
survives the Participant, the Participant's beneficiary shall be the
Participant's beneficiary under the Company-paid group life insurance plan in
which the Participant participates at the time of the Participant's death. If
the Participant does not participate in a Company-paid group life insurance plan
at the time of the Participant's death, the Participant's beneficiary shall be
the Participant's estate.

         14. Other Plans and Agreements. Any gain realized by the Participant
pursuant to this Agreement shall not be taken into account as compensation in
the determination of the Participant's benefits under any pension, savings,
group insurance, or other benefit plan maintained by Verizon or a Related
Company, except as determined by the board of directors of such company. The
Participant acknowledges that receipt of this Agreement or any prior RSU
agreement shall not entitle the Participant to any other benefits under the Plan
or any other plans maintained by the Company.

         15. Company and Related Company. For purposes of this Agreement,
"Company" means Verizon and Related Companies. "Related Company" means (i) any
corporation, partnership, joint venture, or other entity in which Verizon hold a
direct or indirect ownership or proprietary interest of 50 percent or more, or
(ii) any corporation, partnership, joint venture, or other entity in which
Verizon holds an ownership or other proprietary interest of less than 50 percent
but which, in the discretion of the Committee, is treated as a Related Company
for purposes of this Agreement.

         16. Employment Status. The grant of the RSUs shall not be deemed to
constitute a contract of employment between the Company and the Participant, nor
shall it constitute a right to remain in the employ of any such company.

         17. Withholding. It shall be a condition to the issuance or delivery of
shares of Common Stock as to which the RSUs relate that provisions satisfactory
to

                                                                     Exhibit B-8

<PAGE>   34

the Company shall have been made for payment of any taxes determined by the
Company to be required to be paid or withheld pursuant to any applicable law or
regulation. The Participant may irrevocably elect to have the minimum required
amount of any withholding tax obligation satisfied by (a) having shares withheld
that are otherwise to be issued or delivered to the Participant with respect to
the RSUs, or (b) delivering to the Company either shares of Common Stock
received with respect to the RSUs or other shares of Common Stock that have been
held by Participant for at least six months, or (c) any other method approved by
the EVP HR of which the Participant may be informed in writing.

         18. Securities Laws. The Company shall not be required to issue or
deliver any shares of Common Stock prior to the admission of such shares to
listing on any stock exchange on which the stock may then be listed and the
completion of any registration or qualification of such shares under any federal
or state law or rulings or regulations of any government body that the Company,
in its sole discretion, determines to be necessary or advisable.

         19. Committee Authority. The Committee shall have complete discretion
in the exercise of its rights, powers, and duties under this Agreement. Any
interpretation or construction of any provision of, and the determination of any
question arising under, this Agreement shall be made by the Committee in its
sole discretion and shall be final, conclusive, and binding. The Committee may
designate any individual or individuals to perform any of its functions
hereunder.

         20. Successors. This Agreement shall be binding upon, and inure to the
benefit of, any successor or successors of the Company and the person or entity
to whom the RSUs may have been transferred by will, the laws of descent and
distribution, or beneficiary designation. All terms and conditions of this
Agreement imposed upon the Participant shall, unless the context clearly
indicates otherwise, be deemed, in the event of the Participant's death, to
refer to and be binding upon such last-mentioned person or entity.

         21. Construction. This Agreement is intended to grant the RSUs upon the
terms and conditions authorized by the Plan. Any provisions of this Agreement
that cannot be so administered, interpreted, or construed shall be disregarded.
In the event that any provision of this Agreement is held invalid or
unenforceable by a court of competent jurisdiction, such provision shall be
considered separate and apart from the remainder of this Agreement, which shall
remain in full force and effect. In the event that any provision is held to be
unenforceable for being unduly broad as written, such provision shall be deemed
amended to narrow its application to the extent necessary to make the provision
enforceable according to applicable law and shall be enforced as amended.

         22. Defined Terms. Except where the context clearly indicates
otherwise, all capitalized terms used herein shall have the definitions ascribed
to them by the Plan, and the terms of the Plan shall apply where appropriate.

                                                                     Exhibit B-9

<PAGE>   35

         23. Execution of Agreement. The Participant shall indicate consent to
the terms of this Agreement and the Plan by executing the attached signature
page which is made a part of this Agreement.

         24. Confidentiality. Except to the extent otherwise required by law,
the Participant shall not disclose, in whole or in part any of the terms of this
Agreement. This paragraph 24 does not prevent the Participant from disclosing
the terms of this Agreement to the Participant's spouse or to the Participant's
legal, tax, or financial adviser, provided that the Participant take all
reasonable measures to assure that he or she does not disclose the terms of this
Agreement to a third party except as otherwise required by law.

                                                                    Exhibit B-10

<PAGE>   36

                                 SIGNATURE PAGE

By executing this page, the undersigned Participant agrees to be bound by the
terms of the plan(s) listed below and the Performance Share Retention Unit
Agreement, the terms of which are incorporated herein by reference, in
connection with the following grant to the Participant under the Plan:

<TABLE>
<S>                                                       <C>
NAME OF PARTICIPANT:                                      Mary Beth Bardin

SOCIAL SECURITY NUMBER:                                   [Social Security Number]

GRANT DATE:                                               Sept. 7, 2000

NUMBER OF RSUS:                                           30,000

PLAN(S) FROM WHICH RSUS AWARDED:                          Tranche 1- Verizon Communications
                                                          2000 Broad-Based Incentive Plan

                                                          Tranches 2 and 3- 1997 GTE Long-Term
                                                          Incentive Plan
</TABLE>

IN WITNESS WHEREOF, Verizon Communications Inc., by its duly authorized Officer,
and the Participant have executed this Agreement.

                           VERIZON COMMUNICATIONS INC.

     By:
           --------------------------       -------------------------------
           Charles R. Lee                   Ivan G. Seidenberg

                           Co-Chief Executive Officers

                                            -------------------------------
                                                      Participant

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

Please indicate your acceptance by signing above and returning the signed
Agreement to us within ten business days of your receipt of this Agreement.

Please complete the Beneficiary Designation form on the back side.

<PAGE>   37

                                                                       EXHIBIT C

================================================================================

                            SPECIAL RETENTION ACCOUNT
                           AND OTHER BENEFITS PROGRAM

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

                                   PART OF THE
                       GTE EXECUTIVE SALARY DEFERRAL PLAN

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

                             Effective July 1, 2000

================================================================================

<PAGE>   38

                            SPECIAL RETENTION ACCOUNT
                           AND OTHER BENEFITS PROGRAM

                                TABLE OF CONTENTS

<TABLE>
<S>     <C>                                                                                                      <C>
Article 1. Introduction...........................................................................................1

         1.01.    Nature of Program...............................................................................1
         1.02.    Purpose of Program..............................................................................1
         1.03.    Effective Date..................................................................................1

Article 2. Definitions and Construction...........................................................................2

         2.01.    Definitions.....................................................................................2
         2.02.    Part of the Plan................................................................................3
         2.03.    Gender and Number...............................................................................3

Article 3. Eligibility and Account Balance........................................................................4

         3.01.    Eligibility.....................................................................................4
         3.02.    Initial Account Balance.........................................................................4
         3.03.    Election to Defer...............................................................................4

Article 4. Accounts...............................................................................................5

         4.01.    Accounts........................................................................................5

Article 5. Payments...............................................................................................6

         5.01.    Exclusive Entitlement to Payment................................................................6
         5.02.    Amount and Sources of Payment...................................................................6
         5.03.    Limitations on Rights to Payment................................................................7

Article 6. Other Benefits.........................................................................................8

         6.01.    Other Benefits..................................................................................8
         6.02.    Certain Additional Payments by the Company.....................................................11
         6.03.    Nonduplication.................................................................................11
</TABLE>

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program           Table of Contents

<PAGE>   39

                            ARTICLE 1. INTRODUCTION

1.01.    NATURE OF PROGRAM.

         This Program shall become a part of the GTE Executive Salary Deferral
Plan and any successors to that plan. By its terms, this Program shall apply
only to those participants in the GTE Executive Salary Deferral Plan who have
waived any entitlement they might otherwise have to certain payments and/or
other benefits as a result of the merger involving GTE Corporation and Bell
Atlantic Corporation.

1.02.    PURPOSE OF PROGRAM.

         The Program is designed to provide incentives for the Company's key
executives to remain with the Company as it charts its course both as a new
company and a competitor in the most dynamic and innovative industry in history.
The Special Retention Account established under this Program is intended to
provide such an incentive: it allows these employees (if they remain with the
Company for at least one year) to defer certain payments that are not otherwise
eligible for deferral under other Company-sponsored deferred compensation
arrangements and to receive other benefits. The Program is expected to play an
important role in the Company's efforts to retain employees with the leadership,
vision, and commitment necessary for the Company to flourish during this
enormously exciting and challenging time.

1.03.    EFFECTIVE DATE.

         The Program is effective as of July 1, 2000, except to the extent
specifically provided herein.

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Special Retention Account and Other Benefits Program                      Page 1

<PAGE>   40

                    ARTICLE 2. DEFINITIONS AND CONSTRUCTION

2.01.    DEFINITIONS.

         Unless the context clearly indicates otherwise, the following terms,
when used in capitalized form in this Program, shall have the meanings set forth
below.

         COMMITTEE. "Committee" shall mean the Human Resources Committee of the
Board of Directors of the Company.

         COMPANY. "Company" shall mean Verizon Communications Inc. and its
affiliates.

         COVERED EMPLOYEE. "Covered Employee" shall mean an employee of the
Company who is designated as a Covered Employee by the Plan Administrator.

         MERGER. "Merger" shall mean the merger of the businesses of GTE
Corporation and Bell Atlantic Corporation pursuant to the terms of an Agreement
and Plan of Merger dated as of July 27, 1998, among Bell Atlantic, GTE, and Beta
Gamma Corporation.

         OTHER BENEFITS. "Other Benefits" shall mean the benefits described in
Article 6 of this Program.

         OTHER PLANS. "Other Plans" shall mean all employee benefit plans,
programs, awards, arrangements, policies, and practices of the Company, whether
or not qualified under the Code or subject to the Employee Retirement Income
Security Act of 1974, as amended, including any employment agreement the
Participant may have with the Company or its predecessors.

         PARTICIPANT. "Participant" shall mean each Covered Employee who makes
an election pursuant to Section 3.03 and whose Special Retention Account has a
positive balance.

         PLAN. "Plan" shall mean the GTE Executive Salary Deferral Plan, on the
date of its adoption and as it may be amended from time to time and any
successor thereto.

         PLAN ADMINISTRATOR. "Plan Administrator" shall mean the chief human
resources officer of the Company or any other Person designated by the Committee
to serve as Plan Administrator of the Plan.

         PROGRAM. "Program" shall mean this Special Retention Account and Other
Benefits program.

         SPECIAL RETENTION AMOUNT. "Special Retention Amount" shall mean the
amount determined by the Plan Administrator.

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                      Page 2

<PAGE>   41

         SPECIAL RETENTION ACCOUNT. "Special Retention Account" shall mean the
subaccount established under the Plan pursuant to the terms of this Program.

2.02.    PART OF THE PLAN.

         The provisions of this Program are a part of the Plan. The terms of the
Plan shall apply to the benefits provided by this Program to Participants,
except to the extent a provision of this Program is contrary to a provision of
the Plan, in which case the provisions of this Program shall control.

2.03.    GENDER AND NUMBER.

         Masculine pronouns shall refer to both males and females. The singular
form shall include the plural, where appropriate.

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Special Retention Account and Other Benefits Program                      Page 3

<PAGE>   42

                   ARTICLE 3. ELIGIBILITY AND ACCOUNT BALANCE

3.01.    ELIGIBILITY.

         Covered Employees who are Participants shall be eligible to have a
Special Retention Account established under the Plan and to receive certain
Other Benefits as provided in Article 6, below.

3.02.    INITIAL ACCOUNT BALANCE.

         Each Participant shall defer receipt of 100% of his Special Retention
Amount, and the initial balance in the Participant's Special Retention Account
shall be equal to the amount so deferred.

3.03.    ELECTION TO DEFER.

         (a) A Participant shall elect to defer the Special Retention Amount in
accordance with Section 3.03 of the Plan, except that 100% of the Special
Retention Amount shall be treated as if invested in cash, or such other
hypothetical investment vehicle as the Plan Administrator may allow in its
discretion.

         (b) Any election under this Section 3.03 shall be effective July 1,
2000, or such earlier date as the Plan Administrator may determine in its
discretion.

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                      Page 4

<PAGE>   43

                              ARTICLE 4. ACCOUNTS

4.01.    ACCOUNTS.

         (a) The Special Retention Account shall be maintained as a separate
subaccount for each Participant pursuant to Section 4.01(b) of the Plan.

         (b) The Special Retention Account of each Participant shall be credited
with hypothetical investment returns and/or interest determined in accordance
with Section 3.03, above, unless the Plan Administrator determines in its
discretion that a different hypothetical investment vehicle is appropriate for
the Special Retention Account.

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                      Page 5

<PAGE>   44

                              ARTICLE 5. PAYMENTS

5.01.    EXCLUSIVE ENTITLEMENT TO PAYMENT.

         To participate in the Program, a Participant shall waive his right to
receive change in control benefits under any prior agreement with the Company or
its predecessors (including his executive severance agreement) as a result of
the Merger and shall agree to receive in lieu thereof the amount payable to him
at the times and in the amounts specified in this Article 5 and in Article V of
the Plan, as well as the Other Benefits set forth in Article 6, below. No other
amounts shall be due under the Plan or otherwise as a result of the
Participant's deferral election pursuant to Section 3.03.

5.02.    AMOUNT AND SOURCES OF PAYMENT.

         (a) Upon termination of employment, a Participant shall be entitled to
receive the greater of (1) the balance in his Special Retention Account at
termination of employment, or (2) the cash component of any severance benefits
that the Participant receives or is entitled to receive in the aggregate under
all Other Plans. For purposes of this Section 5.02(a)--

              (1) the "cash component" of any severance benefits shall include
         monetary benefits payable in all forms, whether payable in a lump sum
         or otherwise; and

              (2) a Participant shall be treated as "entitled to receive" any
         benefits under a Company-sponsored employee benefit plan to which the
         Participant would be entitled based on compensation and service, even
         if the Participant does not receive the benefit for any other reason.

         (b) The amount payable under the Program after application of Section
5.02(a) shall be payable to the Participant from the following sources in the
following order until the entire amount is paid--

              (1) any of the Other Plans that is qualified (or intended to be
         qualified) under Section 401(a) of the Code;

              (2) the Special Retention Account;

              (3) any of the Other Plans that is not qualified (or intended to
         be qualified) under Section 401(a) of the Code; and

              (4) the general assets of the Company.

         (c) Any amount not paid from the Special Retention Account as a result
of application of this Section 5.02 shall be forfeited.

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                      Page 6

<PAGE>   45

5.03.    LIMITATIONS ON RIGHTS TO PAYMENT.

         (a) Period of Service, Notice. A Participant shall not be entitled to
receive any amount from his Special Retention Account if he (1) voluntarily
terminates from the Company (including a retirement) effective before July 1,
2001, (2) voluntarily terminates from the Company (including a retirement)
without providing 30 days' written notice of his intent to terminate, or (3) is
terminated for Cause (as defined in Section 5.03(b), below). Nothing in this
Section 5.03(a) shall affect the right of a Participant to receive any amount
from his Special Retention Account if he is involuntarily terminated without
Cause or terminates employment due to his death or disability (as defined in the
applicable long-term disability plan).

         (b) Cause. For purposes of this Program, "Cause" shall mean (i) grossly
incompetent performance or substantial or continuing inattention to or neglect
of the duties and responsibilities assigned to the Participant; fraud,
misappropriation or embezzlement involving the Company or a material breach of
any provision incorporated in paragraph 15 ("Covenants") of the employment
agreement to which this Program is an exhibit, as determined by the CEO(s) in
his/their discretion, or (ii) commission of any felony of which the participant
are finally adjudged guilty by a court of competent jurisdiction.

         (c) Other Benefits. The Other Benefits provided in Article 6, below,
shall not be subject to the requirements of Section 5.03(a), above, except to
the extent specifically provided in Article 6, below.

         (d) Other Limitations on Rights to Payment. The provisions of Section
5.05 of the Plan (regarding of Forfeiture of Rights and Competitive Conduct)
shall not apply to the Special Retention Account or the Other Benefits provided
in Article 6, below.

         (e) In-Service Withdrawals. The provisions of Section 5.04 of the Plan
shall not apply to the Special Retention Account to the extent they permit
withdrawals or distributions before a Participant terminates employment with the
Company, except that a Participant may apply to the Committee for such a
withdrawal or distribution after July 1, 2001.

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                      Page 7

<PAGE>   46

                           ARTICLE 6. OTHER BENEFITS

6.01.    OTHER BENEFITS.

         In addition to the benefits provided in the Plan or otherwise in this
Program, Participants shall be entitled to the benefits set forth in paragraphs
(a) through (c) of this Section 6.01.

         (a) Insurance. The Company shall provide each Participant, at the
Company's expense, for a period beginning on the date of the Participant's
termination of employment with the Company, the same medical, dental, and life
insurance coverage as was in effect on the date of the Participant's termination
from employment or, if greater, coverage under any other Company-sponsored
medical, dental, or life insurance coverage available on the date of the
Participant's termination of employment. Such coverage shall end upon the
expiration of 24 months after the Participant's termination of employment. For
purposes of this paragraph (a), "at the Company's expense" means that the
Company shall make all contributions or premium payments required to obtain
coverage, and that the Participant shall not make any such contributions or
premium payments, but that the Participant shall be subject to any deductibles
and co-payment provisions in effect on June 30, 2000 (or, if applicable,
immediately before the termination of employment). Except to the extent
otherwise required by law, the period of coverage for any health care
continuation coverage required by the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, shall begin on the date of the Participant's
termination of employment.

         (b) Benefit Credit.

              (1) Each Participant shall receive service credit, for the purpose
         of receiving benefits and for vesting, retirement eligibility, benefit
         accrual, and all other purposes, under all employee benefit plans
         sponsored by the Company (including, but not limited to, health, life
         insurance, pension, savings, stock, and stock ownership plans, but
         excluding the Company's short-term and long-term disability plans) in
         which he participated on June 30, 2000, for 24 months.

              (2) For purposes of determining the Participant's benefits under
         all defined benefit pension plans maintained by the Company, including
         the GTE Excess Pension Plan and the GTE Supplemental Executive
         Retirement Plan (collectively "SERP")--

                       (A) The Participant's compensation shall include the
              greater of--

                            (i) the initial balance in his Special Retention
                       Account as determined under Section 3.02, above (without
                       any earnings), and

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                      Page 8

<PAGE>   47

                            (ii) 100 percent of the Participant's base salary
                       and the Average Percentage (as defined in Section
                       6.01(b)(4), below) of his maximum short-term bonus
                       opportunity (both base salary and maximum short-term
                       bonus as in effect immediately before his employment is
                       terminated), for two years;

                       provided that, for purposes of this Section
                       6.01(b)(2)(A), the Participant shall be deemed to have
                       received the greater of the amounts set forth in Section
                       6.01(b)(2)(A)(i) or Section 6.01(b)(2)(A)(ii) in monthly
                       installments over the 24 months following the
                       Participant's termination of employment, each equal to
                       1/24th of the amount payable pursuant to this Section
                       6.01(b)(2)(A);

                       (B) The Participant's compensation in his final year of
              service shall be equal to the greater of (i) one-half of the
              initial balance in his Special Retention Account (as determined
              under Section 3.02, above), or (ii) the Participant's actual
              compensation in his final year of service.

              (3) The Participant shall be considered to have not less than 76
         points and 15 years of Accredited Service for purposes of determining
         (i) his eligibility for early retirement benefits under the Company's
         defined benefit pension plans (including, but not limited to, the
         SERP), and (ii) his eligibility for benefits under the GTE Executive
         Retired Life Insurance Plan (or any predecessor or successor thereto).

              (4) For purposes of Section 6.01(b)(2)(A)(ii), the following
         definitions shall apply--

                       (A) A Participant's "Average Percentage" shall mean the
              average of the Participant's Annual Percentage for each of the
              Determination Years.

                       (B) The "Determination Years" shall mean the last three
              short-term bonus plan years ending before the date on which the
              Participant's employment is terminated (or, if less, the number of
              those three plan years during which the Participant participated
              in the short-term bonus plan).

                       (C) The "Annual Percentage" for each Determination Year
              means--

                            (i) for Determination Years before 2000, one-half of
                       a fraction (expressed as a percentage), the numerator of
                       which is the GTE Executive Income Plan ("EIP") award
                       earned by the Participant for such Determination Year,
                       and the denominator of which is the annual value of the
                       normal payment under the EIP for

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                      Page 9
<PAGE>   48

                       the Participant's salary level (such annual value and
                       normal payment being those that were in effect under the
                       EIP for such Determination Year for the Participant's
                       salary level for such Determination Year);

                            (ii) for Determination Years after 2000, a fraction
                       (expressed as a percentage), the numerator of which is
                       the actual short-term bonus earned by the Participant for
                       such Determination Year, and the denominator of which is
                       the maximum short-term bonus opportunity for the
                       Participant's salary level for such Determination Year;
                       or

                            (iii) for the 2000 Determination Year, a percentage
                       equal to one-half of the sum of--

                                  (a) one-half of a fraction (expressed as a
                            percentage), the numerator of which is the EIP award
                            earned by the Participant for the first six months
                            of the 2000 Determination Year, and the denominator
                            of which is the value of the normal payment under
                            the EIP for the Participant's salary level (such
                            value and normal payment being those that were in
                            effect under the EIP for the first six months of the
                            2000 Determination Year for the Participant's salary
                            level for the first six months of the 2000
                            Determination Year); and

                                  (b) a fraction (expressed as a percentage),
                            the numerator of which is the actual short-term
                            bonus earned by the Participant for the portion of
                            the 2000 Determination Year occurring after June 30,
                            2000, and the denominator of which is the maximum
                            short-term bonus opportunity for the Participant's
                            salary level for the portion of the 2000
                            Determination Year occurring after June 30, 2000.

         Notwithstanding the service credit granted under paragraph (1) of this
         Section 6.01(b) and the compensation recognized under paragraph (2) of
         this Section 6.01(b), nothing in this Section 6.01(b) shall prevent the
         Participant from receiving any benefits to which the Participant is
         entitled under any defined benefit or defined contribution pension plan
         maintained by the Company, including the SERP (as such benefits are
         modified by this Section 6.01(b)) in any form permitted by such plans
         (including but not limited to a lump-sum distribution) immediately
         following the Participant's termination of employment. To the extent
         that the Company's tax-qualified retirement plans cannot provide the
         benefits specified by this Section 6.01(b) without jeopardizing the tax
         qualification of such plans, the Company shall provide such benefits
         under the SERP or its successor.

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                     Page 10
<PAGE>   49

         (c) Stock Options. Annual stock options granted in 1999 and 2000
(except for the Founder's Grant) under the GTE Long-Term Incentive Plan (or any
successor thereto) shall be immediately vested and exercisable for a period of
at least five years following the date of Participant's termination of
employment (but not beyond the maximum term of the option specified by the terms
of the stock option). Notwithstanding the preceding sentence, if the Participant
is terminated for Cause, annual stock options granted in 1999 and 2000 shall be
forfeited.

6.02.    CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

         Participants shall be entitled to a tax gross-up payment in accordance
with Addendum A to the Program.

6.03.    NONDUPLICATION.

         No provision of this Program shall require the Company to provide the
Participant with any payment, benefit, or grant that duplicates any payment,
benefit, or grant that the Participant is entitled to receive under any Company
compensation or benefit plan, award agreement, or other arrangement.

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                     Page 11

<PAGE>   50

              SPECIAL RETENTION ACCOUNT AND OTHER BENEFITS PROGRAM
                                   ADDENDUM A
                       ADDITIONAL PAYMENTS BY THE COMPANY

         A Participant in the Program shall be entitled to a tax gross-up
payment in accordance with the following provisions:

         (a) Gross-Up Payment. If any payment or benefit received or to be
received by the Participant from the Company pursuant to the Plan (the
"Payments") would be subject to the excise tax (the "Excise Tax") imposed by
section 4999 of the Code as determined in accordance with this Addendum A, the
Company shall pay the Participant, at the time specified below, an additional
amount (the "Gross-Up Payment") such that the net amount that the Participant
retains, after deduction of the Excise Tax on the Payments and any federal,
state, and local income tax and the Excise Tax upon the Gross-Up Payment, and
any interest, penalties, or additions to tax payable by the Participant with
respect thereto, shall be equal to the total present value (using the applicable
federal rate (as defined in section 1274(d) of the Code) in such calculation) of
the Payments at the time such Payments are to be made.

         (b) Calculations. For purposes of determining whether any of the
Payments shall be subject to the Excise Tax and the amount of such excise tax,

              (1) The total amount of the Payments shall be treated as
         "parachute payments" within the meaning of section 280G(b)(2) of the
         Code, and all "excess parachute payments" within the meaning of section
         280G(b)(1) of the Code shall be treated as subject to the excise tax,
         except to the extent that, in the written opinion of independent
         counsel selected by the Company and reasonably acceptable to the
         Participant ("Independent Counsel"), a Payment (in whole or in part)
         does not constitute a "parachute payment" within the meaning of section
         280G(b)(2) of the Code, or such "excess parachute payments" (in whole
         or in part) are not subject to the Excise Tax;

              (2) The amount of the Payments that shall be subject to the Excise
         Tax shall be equal to the lesser of (i) the total amount of the
         Payments or (ii) the amount of "excess parachute payments " within the
         meaning of section 280G(b)(1) of the Code (after applying clause (1),
         above); and

              (3) The value of any noncash benefits or any deferred payment or
         benefit shall be determined by Independent Counsel in accordance with
         the principles of section 280G(d)(3) and (4) of the Code.

         (c) Tax Rates. For purposes of determining the amount of the Gross-Up
Payment, the Participant shall be deemed to pay federal income taxes at the
highest marginal rates of federal income taxation applicable to individuals in
the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rates of taxation applicable to
individuals as are in effect in the state and locality of the Participant's
residence in the calendar year in which the Gross-Up

--------------------------------------------------------------------------------
Special Retention Account and Other Benefits Program                Addendum A-1

<PAGE>   51

Payment is to be made, net of the maximum reduction in federal income taxes that
can be obtained from deduction of such state and local taxes, taking into
account any limitations applicable to individuals subject to federal income tax
at the highest marginal rates.

         (d) Time of Gross-Up Payments. The Gross-Up Payments provided for in
this paragraph 12 shall be made upon the earlier of (i) the payment to the
Participant of any Payment or (ii) the imposition upon the Participant, or any
payment by the Participant, of any Excise Tax.

         (e) Adjustments to Gross-Up Payments. If it is established pursuant to
a final determination of a court or an Internal Revenue Service proceeding or
the written opinion of Independent Counsel that the Excise Tax is less than the
amount previously taken into account hereunder, the Participant shall repay the
Company, within 30 days of the Participant's receipt of notice of such final
determination or opinion, the portion of the Gross-Up Payment attributable to
such reduction (plus the portion of the Gross-Up Payment attributable to the
Excise Tax and federal, state, and local income tax imposed on the Gross-Up
Payment being repaid by the Participant if such repayment results in a reduction
in Excise Tax or a federal, state, and local income tax deduction) plus any
interest received by the Participant on the amount of such repayment, provided
that if any such amount has been paid by the Participant as an Excise Tax or
other tax, the Participant shall cooperate with the Company in seeking a refund
of any tax overpayments, and the Participant shall not be required to make
repayments to the Company until the overpaid taxes and interest thereon are
refunded to the Participant.

         (f) Additional Gross-Up Payment. If it is established pursuant to a
final determination of a court or an Internal Revenue Service proceeding or the
written opinion of Independent Counsel that the Excise Tax exceeds the amount
taken into account hereunder (including by reason of any payment the existence
or amount of which cannot be determined at the time of the Gross-Up Payment),
the Company shall make an additional Gross-Up Payment in respect of such excess
within 30 days of the Company's receipt of notice of such final determination or
opinion.

         (g) Change In Law Or Interpretation. In the event of any change in, or
further interpretation of section 280G or 4999 of the Code and the regulations
promulgated thereunder, the Participant shall be entitled, by written notice to
the Company, to request a written opinion of Independent Counsel regarding the
application of such change to any of the foregoing, and the Company shall use
its best efforts to cause such opinion to be rendered as promptly as
practicable.

         (h) Fees And Expenses. All fees and expenses of Independent Counsel
incurred in connection with this Addendum A shall be borne by the Company.

         (i) Survival. The Company's obligation to make a Gross-Up Payment with
respect to Payments made or accrued before the Participant's termination of
employment with the Company shall survive the termination of the Participant's
with the Company unless (1) the Participant's employment is terminated for
Cause, or (2) the Participant fails to execute a release, in which event the
Company's obligation under this Addendum A shall terminate immediately.

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Special Retention Account and Other Benefits Program                Addendum A-2
<PAGE>   52

                                                                       EXHIBIT D

                               EXCISE TAX GROSS-UP

         1. GROSS-UP PAYMENT -- If any payment or benefit received or to be
received by you from the Company pursuant to the terms of the Agreement to which
this Exhibit D is attached or otherwise (the "Payments") would be subject to the
excise tax (the "Excise Tax") imposed by section 4999 of the Internal Revenue
Code (the "Code") as determined in accordance with this Exhibit D, the Company
shall pay you, at the time specified below, an additional amount (the "Gross-Up
Payment") such that the net amount that you retain, after deduction of the
Excise Tax on the Payments and any federal, state, and local income tax and the
Excise Tax upon the Gross-Up Payment, and any interest, penalties, or additions
to tax payable by you with respect thereto, shall be equal to the total present
value (using the applicable federal rate (as defined in section 1274(d) of the
Code) in such calculation) of the Payments at the time such Payments are to be
made.

         2. CALCULATIONS -- For purposes of determining whether any of the
Payments shall be subject to the Excise Tax and the amount of such excise tax,

         (a)  The total amount of the Payments shall be treated as "parachute
              payments" within the meaning of section 280G(b)(2) of the Code,
              and all "excess parachute payments" within the meaning of section
              280G(b)(1) of the Code shall be treated as subject to the excise
              tax, except to the extent that, in the written opinion of
              independent counsel selected by Verizon and reasonably acceptable
              to you ("Independent Counsel"), a Payment (in whole or in part)
              does not constitute a "parachute payment" within the meaning of
              section 280G(b)(2) of the Code, or such "excess parachute
              payments" (in whole or in part) are not subject to the Excise Tax;

         (b)  The amount of the Payments that shall be subject to the Excise Tax
              shall be equal to the lesser of (i) the total amount of the
              Payments or (ii) the amount of "excess parachute payments " within
              the meaning of section 280G(b)(1) of the Code (after applying
              clause (a), above); and

         (c)  The value of any noncash benefits or any deferred payment or
              benefit shall be determined by Independent Counsel in accordance
              with the principles of section 280G(d)(3) and (4) of the Code.

         3. TAX RATES -- For purposes of determining the amount of the Gross-Up
Payment, you shall be deemed to pay federal income taxes at the highest marginal
rates of federal income taxation applicable to individuals in the calendar year
in

<PAGE>   53
                                     - 2 -

which the Gross-Up Payment is to be made and state and local income taxes at
the highest marginal rates of taxation applicable to individuals as are in
effect in the state and locality of your residence in the calendar year in which
the Gross-Up Payment is to be made, net of the maximum reduction in federal
income taxes that can be obtained from deduction of such state and local taxes,
taking into account any limitations applicable to individuals subject to federal
income tax at the highest marginal rates.

         4. TIME OF GROSS-UP PAYMENTS -- The Gross-Up Payments provided for in
this Exhibit D shall be made upon the earlier of (a) the payment to you of any
Payment or (b) the imposition upon you, or any payment by you, of any Excise
Tax.

         5. ADJUSTMENTS TO GROSS-UP PAYMENTS -- If it is established pursuant to
a final determination of a court or an Internal Revenue Service proceeding or
the written opinion of Independent Counsel that the Excise Tax is less than the
amount previously taken into account hereunder, you shall repay the Company,
within 30 days of your receipt of notice of such final determination or opinion,
the portion of the Gross-Up Payment attributable to such reduction (plus the
portion of the Gross-Up Payment attributable to the Excise Tax and federal,
state, and local income tax imposed on the Gross-Up Payment being repaid by you
if such repayment results in a reduction in Excise Tax or a federal, state, and
local income tax deduction) plus any interest received by you on the amount of
such repayment, provided that if any such amount has been paid by you as an
Excise Tax or other tax, you shall cooperate with the Company in seeking a
refund of any tax overpayments, and you shall not be required to make repayments
to the Company until the overpaid taxes and interest thereon are refunded to
you.

         6. ADDITIONAL GROSS-UP PAYMENT -- If it is established pursuant to a
final determination of a court or an Internal Revenue Service proceeding or the
written opinion of Independent Counsel that the Excise Tax exceeds the amount
taken into account hereunder (including by reason of any payment the existence
or amount of which cannot be determined at the time of the Gross-Up Payment),
the Company shall make an additional Gross-Up Payment in respect of such excess
within 30 days of the Company's receipt of notice of such final determination or
opinion.

         7. CHANGE IN LAW OR INTERPRETATION -- In the event of any change in or
further interpretation of section 280G or 4999 of the Code and the regulations
promulgated thereunder, you shall be entitled, by written notice to Verizon, to
request a written opinion of Independent Counsel regarding the application of
such change or further interpretation to any of the foregoing, and Verizon shall
use its best efforts to cause such opinion to be rendered as promptly as
practicable.

         8. FEES AND EXPENSES -- All fees and expenses of Independent Counsel
incurred in connection with this Exhibit D shall be borne by Verizon.

<PAGE>   54

                                      - 3 -

         9. SURVIVAL -- The Company's obligation to make a Gross-Up Payment with
respect to Payments made or accrued before the end of the Term of Employment
shall survive the Term of Employment unless (a) your employment is terminated
for Cause pursuant to paragraph 13(f) of the Agreement to which this Exhibit D
is attached ("Involuntary Termination For Cause"), (b) you fail to execute a
release in accordance with paragraph 14 of such Agreement ("Release"), or (c)
you fail to comply with the covenants incorporated in paragraph 15 of such
Agreement ("Covenants"), in which event the Company's obligation under this
Exhibit D shall terminate immediately.

         10. DEFINED TERMS - Except where clearly provided to the contrary, all
capitalized terms used in this Exhibit D shall have the definitions given to
those terms in the Agreement to which this Exhibit D is attached.

<PAGE>   55

                                                                       EXHIBIT E

                                    COVENANTS

         1. NONCOMPETITION -- In consideration for the benefits and agreements
described in the Agreement to which this Exhibit E is attached, you agree that:

              (a) PROHIBITED CONDUCT -- During the period of your employment
with the Company, and for the period ending six months after your termination of
employment for any reason from the Company, you shall not, without the prior
written consent of the CEO(s):

                  (1)  personally engage in Competitive Activities (as defined
                       below); or

                  (2)  work for, own, manage, operate, control, or participate
                       in the ownership, management, operation, or control of,
                       or provide consulting or advisory services to, any
                       individual, partnership, firm, corporation, or
                       institution engaged in Competitive Activities, or any
                       company or person affiliated with such person or entity
                       engaged in Competitive Activities; provided that your
                       purchase or holding, for investment purposes, of
                       securities of a publicly-traded company shall not
                       constitute "ownership" or "participation in ownership"
                       for purposes of this paragraph so long as your equity
                       interest in any such company is less than a controlling
                       interest;

provided that this paragraph (a) shall not prohibit you from (i) being employed
by, or providing services to, a consulting firm, provided that you do not
personally engage in Competitive Activities or provide consulting or advisory
services to any individual, partnership, firm, corporation, or institution
engaged in Competitive Activities, or any company or person affiliated with such
person or entity engaged in Competitive Activities, or (ii) engaging in the
private practice of law as a sole practitioner or as a partner in (or as an
employee of or counsel to) a law firm in accordance with applicable legal and
professional standards.

              (b) COMPETITIVE ACTIVITIES - For purposes of the Agreement to
which this Exhibit E is attached, "Competitive Activities" means business
activities relating to products or services of the same or similar type as the
products or services (1) which are sold (or, pursuant to an existing business
plan, will be sold) to paying customers of the Company, and (2) for which you
then have responsibility to plan,

<PAGE>   56

                                     - 2 -

develop, manage, market, or oversee, or had any such responsibility within your
most recent 24 months of employment with the Company. Notwithstanding the
previous sentence, a business activity shall not be treated as a Competitive
Activity if the geographic marketing area of the relevant products or services
sold by you or a third party does not overlap with the geographic marketing area
for the applicable products and services of the Company.

         2. INTERFERENCE WITH BUSINESS RELATIONS -- During the period of your
employment with the Company, and for a period ending with the expiration of 12
months following your termination of employment for any reason from the Company,
you shall not, without the written consent of the CEO(s):

                  (a)  recruit or solicit any employee of the Company for
                       employment or for retention as a consultant or service
                       provider;

                  (b)  hire or participate (with another company or third party)
                       in the process of hiring (other than for the Company) any
                       person who is then an employee of the Company, or provide
                       names or other information about Company employees to any
                       person or business (other than the Company) under
                       circumstances that could lead to the use of that
                       information for purposes of recruiting or hiring;

                  (c)  interfere with the relationship of the Company with any
                       of its employees, agents, or representatives;

                  (d)  solicit or induce, or in any manner attempt to solicit or
                       induce, any client, customer, or prospect of the Company
                       (1) to cease being, or not to become, a customer of the
                       Company or (2) to divert any business of such customer or
                       prospect from the Company; or

                  (e)  otherwise interfere with, disrupt, or attempt to
                       interfere with or disrupt, the relationship, contractual
                       or otherwise, between the Company and any of its
                       customers, clients, prospects, suppliers, consultants, or
                       employees.

         3. RETURN OF PROPERTY; INTELLECTUAL PROPERTY RIGHTS -- You agree that
on or before your termination of employment for any reason with the Company, you
shall return to the Company all property owned by the Company or in which the
Company has an interest, including files, documents, data and records (whether
on paper or in tapes, disks, or other machine-readable form), office equipment,
credit cards, and employee identification cards. You acknowledge that the
Company is

<PAGE>   57

                                     - 3 -

the rightful owner of any programs, ideas, inventions, discoveries, patented or
copyrighted material, or trademarks that you may have originated or developed,
or assisted in originating or developing, during your period of employment with
the Company, where any such origination or development involved the use of
Company time or resources, or the exercise of your responsibilities for or on
behalf of the Company. You shall at all times, both before and after termination
of employment, cooperate with the Company in executing and delivering documents
requested by the Company, and taking any other actions, that are necessary or
requested by the Company to assist the Company in patenting, copyrighting, or
registering any programs, ideas, inventions, discoveries, patented or
copyrighted material, or trademarks, and to vest title thereto in the Company.

         4. PROPRIETARY AND CONFIDENTIAL INFORMATION -- You shall at all times
preserve the confidentiality of all proprietary information and trade secrets of
the Company, except to the extent that disclosure of such information is legally
required. "Proprietary information" means information that has not been
disclosed to the public and that is treated as confidential within the business
of the Company, such as strategic or tactical business plans; undisclosed
financial data; ideas, processes, methods, techniques, systems, patented or
copyrighted information, models, devices, programs, computer software, or
related information; documents relating to regulatory matters and correspondence
with governmental entities; undisclosed information concerning any past,
pending, or threatened legal dispute; pricing and cost data; reports and
analyses of business prospects; business transactions that are contemplated or
planned; research data; personnel information and data; identities of users and
purchasers of the Company's products or services; and other confidential matters
pertaining to or known by the Company, including confidential information of a
third party that you know or should know the Company is bound to protect.

         5. DEFINITIONS -- Except where clearly provided to the contrary, all
capitalized terms used in this Exhibit E shall have the definitions given to
those terms in the Agreement to which this Exhibit E is attached.

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