Document:

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                                                                   Exhibit 10.36

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as
of January 20, 2000, by and between MJD COMMUNICATIONS INC., a Delaware
corporation (together with its successors and assigns permitted hereunder, the
"Company"), and WALTER E.
LEACH, JR. (the "Executive").

                                    RECITALS:

         WHEREAS, the Board of Directors of the Company (the "Board") has
determined that it is in the best interests of the Company and its subsidiaries
and stockholders to enter into this Agreement for purposes of the Company
employing the Executive on the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the respective agreements and
covenants set forth herein and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

         1. EMPLOYMENT PERIOD. Subject to Section 3, the Company hereby agrees
to employ the Executive, and the Executive hereby agrees to be employed by the
Company in accordance with the terms and provisions of this Agreement, for a
period (the "Employment Period") commencing on the date hereof and ending on
December 31, 2003. In the event the Executive continues to perform services
after the Employment Period, and pending agreement for extension of the
Employment Agreement, such services shall constitute employment for an
unspecified term, terminable at will, with or without cause or reason, with or
without advance notice, and with or without pay in lieu of advance notice.

         2.       TERMS OF EMPLOYMENT.

                  (a)      POSITION AND DUTIES.

                           (i) During the term of the Executive's employment,
the Executive shall serve as Chief Financial Officer of the Company and, in so
doing, shall perform normal duties and responsibilities associated with such
position, subject to the general direction, approval and control of the Chief
Executive Officer of the Company.

                           (ii) During the term of the Executive's employment,
and excluding any periods of vacation and other leave to which the Executive is
entitled, the Executive agrees to devote substantially all his business time to
the business and affairs of the Company and to use the

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Executive's best efforts to perform faithfully, effectively and efficiently his
duties and responsibilities.

                           (iii) During the term of the Executive's employment
it shall not be a violation of this Agreement for the Executive to (1) serve on
industry trade, civic or charitable boards or committees, (2) deliver lectures
or fulfill speaking engagements, and (3) manage personal investments, so long as
such activities do not interfere with the performance of the Executive's duties
and responsibilities as an employee of the Company.

                           (iv) Executive agrees to observe and comply with the
Company's rules and policies as adopted by the Company from time to time.

                  (b)      COMPENSATION.

                           (i) BASE SALARY. During the term of the Executive's
employment, the Executive shall receive an annual base salary (the "Annual Base
Salary"), which shall be paid in accordance with the customary payroll practices
of the Company, in an amount to be determined by the Board.

                           (ii) BONUS. Executive shall receive an annual bonus
in an amount to be determined by the Board.

                           (iii) INCENTIVE SAVINGS, STOCK OPTION AND RETIREMENT
PLANS. During the term of the Executive's employment, the Executive shall be
entitled to participate in all incentive, savings stock option and retirement
plans, practices, policies and programs applicable generally to other employees
of the Company, as amended from time to time. In addition, the Executive shall
be entitled to participate in the MJD Communications, Inc. Nonqualified Deferred
Compensation Plan.

                           (iv) WELFARE BENEFIT PLANS. During the term of the
Executive's employment, the Executive and/or the Executive's family, as the case
may be, shall be eligible for participation in and shall receive all benefits
under the welfare benefit plans, practices, policies and programs provided by
the Company, including medical, prescription, dental, disability, salary
continuance, employee life, group life, accidental death and travel accident
insurance plans and programs, as amended from time to time, to the extent
applicable generally to other employees of the Company. In addition, the
Executive shall be entitled to payment of long term disability and term life
insurance premiums in an amount not to exceed $6,000 in the aggregate annually.

                           (v) PERQUISITES. During the term of the Executive's
employment, the Executive shall be entitled to receive, in addition to the
benefits described above, such perquisites and fringe benefits appertaining to
his position in accordance with any policies, practices and procedures
established by the Board, as amended from time to time, including, without
limitation reimbursement for automobile (American luxury or equivalent)
expenses.

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                           (vi) EXPENSES. During the term of the Executive's
employment, the Executive shall be entitled to receive prompt reimbursement for
all reasonable employment expenses incurred by the Executive in accordance with
the Company's policies, practices and procedures, as amended from time to time.

         3.       TERMINATION OF EMPLOYMENT.

                  (a) DEATH OR DISABILITY. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Disability (as defined below) of the Executive has occurred during the
Employment Period, the Company may give to the Executive written notice in
accordance with Section 11(b) of its intention to terminate the Executive's
employment. In such event, the Executive's employment with the Company shall
terminate effective on the 90th day after receipt of such notice by the
Executive (the "Disability Effective Date"), if, within the 90 days after such
receipt, the Executive shall not have returned to perform, with reasonable
accommodation, the essential functions of his position. For purposes of this
Agreement, at any time the Company or any of its affiliates sponsors a long-term
disability plan for the Company's employees, "Disability" shall mean disability
as defined in such long-term disability plan. The determination of whether the
Executive has a Disability shall be made by the person or persons required to
render disability determinations under the long-term disability plan. At any
time the Company does not sponsor a long-term disability plan for its employees,
"Disability" shall mean the Executive's inability to perform, with reasonable
accommodation, the essential functions of his position hereunder for a period of
180 consecutive days due to mental or physical incapacity, as determined by a
physician selected by the Company or its insurers.

                  (b) CAUSE OR WITHOUT CAUSE. The Company may terminate the
Executive's employment during the Employment Period for Cause or without Cause.
For purposes of this Agreement, "Cause" shall mean (a) misappropriating any
funds or any material property of the Company; (b) obtaining or attempting to
obtain any material personal profit from any transaction in which the Executive
has an interest which is adverse to the interest of the Company unless the
Company shall first give its consent to such transaction; (c) (i) the willful
taking of actions which directly impair the Employee's ability to perform the
duties required by the terms of his employment; or (ii) taking any action
detrimental to the Company's goodwill or damaging to the Company's relationships
with its customers, suppliers or employees; provided that such neglect or
refusal, action or breach shall have continued for a period of twenty (20) days
following written notice thereof; (d) being convicted of or pleading NOLO
CONTENDERE to any crime or offense constituting a felony under applicable law or
any crime or offense involving fraud or moral turpitude; or (e) any material
intentional failure to comply with applicable laws or governmental regulations
within the scope of employment as defined by this Agreement. For purposes of
this Agreement, "without Cause" shall mean a termination by the Company of the
Executive's employment during the Employment Period for any reason other than a
termination based upon Cause, death, Disability or upon a Change of Control, as
defined below.

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                  (c) CHANGE OF CONTROL. If a Change of Control (as defined
below) occurs during the Employment Period and the Board determines in good
faith that it is in the Company's best interests to terminate the Executive's
employment with the Company within one year of such Change of Control the
Company may terminate the Executive's employment by giving the Executive written
notice in accordance with Section 11(b) of its intention to terminate the
Executive's employment. Any such termination by the Company as contemplated in
this Section 3(d) is referred to herein as a termination "upon a Change of
Control."

                  For purposes of this Agreement, a "Change of Control" shall be
deemed to have occurred if: (a) the stockholders of the Company on the date
hereof (after giving effect to the transactions contemplated by the Stock
Purchase Agreement; dated as of the date hereof, by and among the Company and
the other Parties thereto) no longer own, either directly or indirectly, shares
of capital stock of the Company entitling them to 51% in the aggregate of the
voting power for the election of the directors of the Company, as a result of a
merger or consolidation of the Company, a transfer of capital stock of the
Company or otherwise, or (b) the Company sells, assigns, conveys, transfers,
leases or otherwise disposes of, in one transaction or a series of related
transactions, all or substantially all of its property or assets to any other
person or entity.

               (d) NOTICE OF TERMINATION. Any termination by the Company for
Cause or without Cause or upon a Change of Control, shall be communicated by a
Notice of Termination to the Executive hereto given in accordance with Section
11(b). For purposes of this Agreement, the term "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall not be more than 15
days after the giving of such notice if the Executive is giving such notice).
The failure by the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Cause or a termination upon a
Change of Control shall not waive any right of the Company hereunder or preclude
the Company from asserting such fact or circumstance in enforcing the Company's
rights hereunder.

               (e) DATE OF TERMINATION. The term "Date of Termination" means (i)
if the Executive's employment is terminated by the Company for Cause or upon a
Change of Control, the date of receipt of the Notice of Termination or any later
date specified therein pursuant to Section 3(e), as the case may be, (ii) if the
Executive's employment is terminated by the Executive 30 days from the date of
receipt of the Notice of Termination, (iii) if the Executive's employment is
terminated by the Company other than for Cause or upon a Change of Control, the
date on which the Company notifies the Executive of such termination and (iv) if
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability, as the case may be.

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         4.       OBLIGATIONS OF THE COMPANY UPON TERMINATION.

                  (a) FOR CAUSE; WITHOUT GOOD REASON; OTHER THAN FOR DEATH,
DISABILITY OR UPON A CHANGE OF CONTROL. If, during the Employment Period, the
Company shall terminate the Executive's employment for Cause, the Executive
shall not be entitled to any benefits pursuant to this Agreement.

                  (b) WITHOUT CAUSE. In the event that the Executive's
employment as Chief Financial Officer of the Company is terminated without
"cause" and not as a result of a Change of Control, the Executive shall be
entitled to receive in a lump sum payment from the Company, an amount equal to
the Executive's Annual Base Salary as of the date of termination for a period of
six (6) months plus all accrued and unpaid base salary and benefits as of the
Date of Termination. In addition, the Company shall maintain the Executive's
long term disability and medical benefits for a period of six (6) months
following the Date of Termination.

                  (c) CHANGE OF CONTROL. In the event that the Company
terminates the Executive's employment as Chief Financial Officer upon a Change
of Control (as defined below), the Executive shall be entitled to receive from
the Company in a lump sum payment, an amount equal to the Executive's Annual
Base Salary as of the Date of Termination for a period of twelve (12) months. In
addition, the Company shall maintain the Executive's long term disability and
medical benefits for a period of twelve (12) months following the Date of
Termination.

                  5. SEVERABILITY. If any provision of this Agreement is held to
be illegal, invalid or unenforceable under present or future laws, such
provision shall be fully severable, this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part of this Agreement, and the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance from this
Agreement.

                  6. MISCELLANEOUS.

                     (a) COUNTERPARTS. This Agreement may be executed in several
         counterparts each of which is an original. This Agreement and any
         counterpart so executed shall be deemed to be one and the same
         instrument. It shall not be necessary in making proof of this Agreement
         or any counterpart hereof to produce or account for any of the other
         counterparts.

                     (b) CONTENTS OF AGREEMENT; PARTIES-IN-INTEREST, ETC. This
         Agreement sets forth the entire understanding of the parties regarding
         the subject matter hereof. Any previous agreements or understandings
         between the parties regarding the subject matter hereof are merged into
         and superseded by this Agreement. All representations, warranties,

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        covenants, terms, conditions and provisions of this Agreement shall be
        binding upon and inure to the benefit of and be enforceable by the
        respective heirs, legal representatives, successors and permitted
        assigns of the Company and the Executive. Neither this Agreement nor any
        rights, interests or obligations hereunder may be assigned by any party
        without the prior written consent of the other party hereto.

                     (c) NEW YORK LAW TO GOVERN. THIS AGREEMENT SHALL BE
         CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
         YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.

                     (d) SECTION HEADINGS. The section headings herein have been
         inserted for convenience of reference only and shall in no way modify
         or restrict any of the terms or provisions hereof.

                     (e) NOTICES. All notices, requests, demands and other
         communications which are required or permitted hereunder shall be
         sufficient if given in writing and delivered personally or by
         registered or certified mail, postage prepaid, or by facsimile
         transmission (with a copy simultaneously sent by registered or
         certified mail, postage prepaid), as follows (or to such other address
         as shall be set forth in a notice given in the same manner):

                         (1) If to the Company to:

                             MJD Communications, Inc.
                             521 East Morehead Street, Suite 250
                             Charlotte, North Carolina 28202
                             Facsimile: (704) 344-8150

                             Attn:  Jack H. Thomas

                             Copies to:

                             Paul, Hastings, Janofsky & Walker LLP
                             399 Park Avenue
                             New York, New York 10022-4697
                             Facsimile: (212) 319-4090
                             Attn: Neil A. Torpey, Esq.

                         (2) If to the Executive, to:

                             Walter E. Leach, Jr.
                             6419 Sharon Hills Road
                             Charlotte, NC 28210

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                     (f) MODIFICATION AND WAIVER. Any of the terms or conditions
         of this Agreement may be waived in writing at any time by the party
         which is entitled to the benefits thereof, and this Agreement may be
         modified or amended at any time by the Company and the Executive. No
         supplement, modification or amendment of this Agreement shall be
         binding unless executed in writing by each of the parties hereto. No
         waiver of any of the provisions of this Agreement shall be deemed or
         shall constitute a waiver of any other provision hereof nor shall such
         waiver constitute a continuing waiver.

                     (g) THIRD PARTY BENEFICIARIES. Except as otherwise
         expressly set forth herein, no individual or entity shall be a
         third-party beneficiary of the representations, warranties, covenants
         and agreements made by any party hereto.

                     (h) TERMINATION OF PRIOR ARRANGEMENTS. The parties hereto
         acknowledge and agree that this Agreement supersedes and terminates all
         existing severance agreements or arrangements between the Company or
         any of its affiliates and the Executive, including, without limitation,
         the agreement between the Company and the Executive, dated September
         24, 1994.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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               IN WITNESS WHEREOF, the parties hereto have executed or have
caused this Agreement to be duly executed as of the date first above written.

EXECUTIVE                               MJD COMMUNICATIONS, INC.

/s/ Walter E. Leach, Jr.                By: /s/ Eugene B. Johnson
---------------------------------       ---------------------------------
Walter E. Leach, Jr.                    Name:  Eugene B. Johnson
                                        Title: Exec. Vice President

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Exhibit 10.37

                INSTITUTIONAL STOCKHOLDER SUBSCRIPTION AGREEMENT

         This Institutional Stockholder Subscription Agreement (this
"AGREEMENT"), dated as of January 20, 2000, between MJD Communications, Inc., a
Delaware corporation (the "COMPANY"), and the Purchaser named on the signature
page of this Agreement (the "PURCHASER").

         WHEREAS, the Purchaser desires to subscribe for, and the Company
desires to make available for purchase, those shares of the Company's Class C
NonVoting Common Stock, par value $.01 per share (the "SHARES"), indicated as
being subscribed for by the Purchaser on the signature page of this Agreement on
the terms and conditions set forth below.

         NOW, THEREFORE, in consideration of the mutual covenants and
obligations set forth in this Agreement, the parties hereto agree as follows:

         1. PURCHASE AND SALE OF THE SHARES. (a) GENERAL. Subject to all of the
terms and conditions of this Agreement, and in reliance upon the representations
and warranties contained herein, the Purchaser hereby subscribes for and agrees
to pur chase, and the Company agrees to sell to the Purchaser for the
Purchaser's own account, the number of Shares set forth opposite the Purchaser's
signature on the signature page of this Agreement.

         Notwithstanding anything in this Agreement to the contrary, the Company
shall not have any obligation to sell any of the Shares to any Purchaser who is
a resident of a jurisdiction in which the sale of Shares to such Purchaser would
constitute a violation of the securities, "blue sky" or other similar laws of
such jurisdiction.

         (b) PURCHASE PRICE. The purchase price per Share shall be $262.33. At
the Closing, the Purchaser shall purchase the Shares for the aggregate amount
set forth on the signature page of this Agreement (the "PURCHASE PRICE"). The
Purchase Price shall be paid by the Purchaser at the Closing in cash (payable by
wire transfer of immediately available funds to an account designated by the
Company).

                  2. CLOSING. (a) TIME AND PLACE. The closing of the
transactions contemplated by this Agreement (the "CLOSING") shall be held at the
same place and at the same time and date (the "CLOSING DATE") as the closing
under the Stock Purchase

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Agreement (the "STOCK PURCHASE AGREEMENT"), dated as of January 4, 2000, among
the Company, Kelso Investment Associates V, L.P. ("KIA V"), Kelso Equity
Partners V, L.P. ("KEP V"; together with KIA V, "KELSO"), Thomas H. Lee Equity
Fund IV, L.P. and the other parties thereto, as the same shall be amended from
time to time.

         (b) DELIVERY BY THE COMPANY. At the Closing, against delivery of the
Purchase Price, the Company will deliver to the Purchaser (I) a stock
certificate registered in the Purchaser's name and representing the number of
Shares purchased by the Purchaser, which certificate shall bear the legends set
forth in the Institutional Stockholders' Agreement, dated as of the Closing Date
(the "INSTITUTIONAL STOCKHOLDERS' AGREEMENT"), among the Company and each other
purchaser of the Company's Class C Common Stock and (II) a signature page to the
Institutional Stockholders' Agreement executed by the Company.

         (c) DELIVERY BY THE PURCHASER. At the Closing, the Purchaser will
deliver (I) the Purchase Price as provided in Section 1(b) and (II) a signature
page to the Institutional Stockholders' Agreement executed by the Purchaser.

         (d) CONDITIONS PRECEDENT. The obligation of the Purchaser under this
Agreement to purchase the Shares, and the obligation of the Company under this
Agreement to sell the Shares, are both subject to the condition that the closing
under the Stock Purchase Agreement shall have occurred or shall be occurring.

         3. PURCHASER'S REPRESENTATIONS, WARRANTIES AND COVENANTS. (a)
INVESTMENT INTENTION AND RESTRICTIONS ON DISPOSITION. The Purchaser represents
and warrants that the Purchaser is acquiring the Shares solely for the
Purchaser's own account for investment and not with a view to, or for sale in
connection with, any distribution thereof. The Purchaser agrees that the
Purchaser will not, directly or indirectly, offer, transfer, sell, pledge,
hypothecate or otherwise dispose of any of the Shares (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of any of the Shares) or any
interest therein or any rights relating thereto, except in compliance with the
Securities Act of 1933, as amended, and the rules and regulations thereunder
(the "ACT"), all applicable state securities or "blue sky" laws and the
Institutional Stockholders' Agreement, as the same shall be amended from time to
time. Any attempt by the Purchaser, directly or indirectly, to offer, transfer,
sell, pledge, hypothecate or otherwise dispose of any of the Shares or any
interest therein or any rights relating thereto without complying with the
provisions of this Agreement and the Institutional Stockholders' Agreement, as
the same shall be amended from time to time, shall be void and of no effect.

         (b) SECURITIES LAW MATTERS. The Purchaser acknowledges receipt of
advice from the Company that (I) the Shares have not been registered under the
Act or

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qualified under any state securities or "blue sky" laws, (II) it is not
anticipated that there will be any public market for the Shares, (III) the
Shares must be held indefinitely and the Purchaser must continue to bear the
economic risk of the investment in the Shares unless such Shares are
subsequently registered under the Act and such state laws or an exemption from
such registration is available, (IV) Rule 144 promulgated under the Act ("RULE
144") is not presently available with respect to sales of any securities of the
Company and the Company has made no covenant to make Rule 144 available and Rule
144 is not anticipated to be available in the foreseeable future, (V) when and
if the Shares may be disposed of without registration in reliance upon Rule 144,
such disposition can be made only in limited amounts and in accordance with the
terms and conditions of such Rule, (VI) if the exemption afforded by Rule 144 is
not available, public sale of the Shares without registration will require the
availability of an exemption under the Act, (VII) restrictive legends in the
form set forth in the Institutional Stockholders' Agreement shall be placed on
the certificate representing the Shares and (VIII) a notation shall be made in
the appropriate records of the Company indicating that the Shares are subject to
restrictions on transfer and, if the Company should in the future engage the
services of a stock transfer agent, appropriate stop-transfer instructions will
be issued to such transfer agent with respect to the Shares.

         (c) ABILITY TO BEAR RISK. The Purchaser represents and warrants that
(I) the financial situation of the Purchaser is such that the Purchaser can
afford to bear the economic risk of holding the Shares for an indefinite period
and (II) the Purchaser can afford to suffer the complete loss of the Purchaser's
investment in the Shares.

         (d) ACCESS TO INFORMATION; SOPHISTICATION; LACK OF RELIANCE. The
Purchaser represents and warrants that (I) the Purchaser has been granted the
opportunity to ask questions of, and receive answers from, representatives of
the Company concerning the Company and the terms and conditions of the purchase
of the Shares and to obtain any additional information that the Purchaser deems
necessary, (II) the Purchaser's knowledge and experience in financial business
matters is such that the Purchaser is capable of evaluating the merits and risks
of the investment in the Shares and (III) the Purchaser has carefully reviewed
the terms and provisions of the Institutional Stockholders' Agreement and has
evaluated the restrictions and obligations contained therein. In furtherance of
the foregoing, each Purchaser represents and warrants that (I) no representation
or warranty, express or implied, whether written or oral, as to the financial
condition, results of operations, prospects, properties or business of the
Company or as to the desirability or value of an investment in the Company has
been made to such Purchaser by or on behalf of the Company, except for those
representations and warranties contained in Section 4 hereof and in the
Institutional Stockholders' Agreement, (II) such Purchaser has relied upon such
Purchaser's own independent appraisal and investigation, and the advice of such
Purchaser's own counsel, tax advisors and other advisors, regarding the risks of
an

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investment in the Company and (III) such Purchaser will continue to bear sole re
sponsibility for making its own independent evaluation and monitoring of the
risks of its investment in the Company. For purposes of this Section 3(d), the
Company includes each subsidiary of the Company.

         (e) ACCREDITED INVESTOR. The Purchaser represents and warrants that the
Purchaser is an "accredited investor" as such term is defined in Rule 501(a)
promulgated under the Act

         (f) DUE EXECUTION, ENFORCEABILITY, ETC. The Purchaser represents and
warrants that (I) the Purchaser has duly executed and delivered this Agreement,
(II) all actions required to be taken by or on behalf of the Purchaser to
authorize it to execute, deliver and perform its obligations under this
Agreement and the Institutional Stockholders' Agreement have been taken, (III)
this Agreement constitutes and, upon execution thereof, the Institutional
Stockholders' Agreement will constitute, the Purchaser's legal, valid and
binding obligations, enforceable against the Purchaser in accordance with their
respective terms, (IV) the execution and delivery of this Agreement and the
Institutional Stockholders' Agreement and the consummation by the Purchaser of
the transactions contemplated hereby and thereby in the manner contemplated
hereby and thereby do not and will not conflict with, or result in a breach of
any terms of, or constitute a default under, any agreement or instrument or any
statute, law, rule or regulation, or any judgment, decree, writ, injunction,
order or award of any arbitrator, court or governmental authority which is
applicable to the Purchaser or by which the Purchaser or any material portion of
its properties is bound, (V) no consent, approval, authorization, order, filing,
registration or qualification of or with any court, governmental authority or
third person is required to be obtained by the Purchaser in connection with the
execution and delivery of this Agreement or the Institutional Stockholders'
Agreement or the performance of the Purchaser's obligations hereunder or
thereunder and (VI) the Purchaser's principal place of business and mailing
address are in the state set forth below the Purchaser's signature on the
signature page.

         (g) NO BROKERS. No broker has acted on behalf of the Purchaser in
connection with this Agreement, and there are no brokerage commissions, finders'
fees or commissions payable in connection herewith.

         4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
represents and warrants to the Purchaser that:

                  (i) prior to the Closing it will have taken all corporate
         actions necessary to authorize it to enter into and perform its
         obligations under this Agreement and to consummate the transactions
         contemplated hereby;

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                  (ii) this Agreement will be duly executed and delivered by the
         Company and constitute the legal, valid and binding obligation of the
         Company, enforceable against the Company in accordance with its terms,
         except as the same may be affected by bankruptcy, insolvency,
         moratorium or similar laws, or by legal or equitable principles
         relating to or limiting the rights of contracting parties generally;

                  (iii) upon the delivery of and payment for the Shares at the
         Closing as provided for in this Agreement, the Purchaser will acquire
         good and valid title to all such shares of capital stock being sold to
         it by the Company, free and clear of all liens, and all such shares of
         capital stock being acquired by the Purchaser will be duly authorized,
         validly issued, fully paid and non-assessable;

                  (iv) immediately prior to the Closing, the authorized capital
         stock of the Company will consist of 3,000,000 shares of Common Stock,
         of which 1,810,147 shares will be issued and outstanding and 300,000
         shares of Preferred Stock, par value $.01 per share (the "Preferred
         Stock"), of which no shares will be issued and outstanding; and
         immediately following the Closing and after giving effect to the
         transactions contemplated by this Agreement and the Stock Purchase
         Agreement and assuming that Kelso will purchase 212,183 shares of the
         Class B Common Stock, par value $.01 per share (the "Class B Common
         Stock") at the Closing, the authorized capital stock of the Company
         will consist of (A) 60,000,000 shares of Class A Common Stock, of which
         571,117.4 shares will be issued and outstanding on a fully-diluted
         basis, (B) 50,000,000 shares of Class B Common Stock, 627,186.4 of
         which shares will be issued and outstanding and owned of record by
         Kelso, which if converted into shares of Class A Common Stock at such
         time (assuming all shares of Series D Non-Voting Convertible Preferred
         Stock, par value $.01 per share (the "Series D Preferred Stock") were
         converted into Class A Common Stock simultaneously), would represent
         25.2% of the issued and outstanding Class A Common Stock (or 22.1% on a
         fully diluted basis (assuming the consummation of the option exchange
         contemplated by Section 6.21 of the Stock Purchase Agreement on the
         terms contemplated as of the Closing Date)), (C) 4,600,000 shares of
         Class C Common Stock, of which 213,472 will be issued and outstanding,
         which if converted into shares of Class A Common Stock at such time
         (assuming all shares of Class B Common Stock and Series D Preferred
         Stock were converted into Class A Common Stock simultaneously), would
         represent 8.6% of the issued and outstanding Class A Common Stock (or
         7.5% on a fully diluted basis (assuming the consummation of the option
         exchange contemplated by Section 6.21 of the Stock Purchase Agreement
         on the terms contemplated as of the Closing Date)), and (D) 30,000,000
         shares of Preferred Stock, par value $.01 per share, of which

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         1,073,086 shares of Series D Preferred Stock will be issued and
         outstanding. THL will own 1,073,086 shares of Series D Preferred Stock,
         which if converted into shares of Class A Common Stock at such time
         (assuming all shares of Class B Common Stock were converted into Class
         A Common Stock simultaneously), would represent 43.2% of the issued and
         outstanding Class A Common Stock (or 37.7% on a fully diluted basis
         (assuming the consummation of the option exchange contemplated by
         Section 6.21 of the Stock Purchase Agreement on the terms contemplated
         as of the Closing Date)); and

                  (v) Except for as set forth on Schedule I hereto, the
         execution, delivery and performance by the Company of this Agreement
         and the Institutional Stockholders' Agreement and the consummation of
         the transactions contemplated hereby and thereby (including, without
         limitation, the issuance and ownership of the Shares to be issued to
         the Purchaser hereunder and the receipt and exercise of the rights of
         the Purchaser hereunder and thereunder), do not and will not conflict
         with, contravene, result in a violation or breach of or default under
         (with or without the giving of notice or the lapse of time, or both),
         create in any other person a right or claim of termination, amendment,
         modification, acceleration or cancellation of, or result in or require
         the creation of any lien (or any obligation to create any lien) on any
         of the properties or assets of the Company or any subsidiary under (A)
         any applicable law, (B) any provision of the certificate or articles of
         incorporation, by-laws or other organizational documents, as the case
         may be, of the Company or any subsidiary, or (C) any contract,
         agreement, license or other instrument to which the Company or any
         subsidiary is a party or by which any of the Company's or any
         subsidiary's properties or assets may be bound, except, in the case of
         clause (c), for violations, breaches and defaults that, individually
         and in the aggregate, would not cause a material adverse effect.

         5. MISCELLANEOUS. (a) BINDING EFFECT; BENEFITS. This Agreement shall be
binding upon and inure to the benefit of the parties to this Agreement and their
respective successors and permitted assigns. Nothing in this Agreement, express
or implied, is intended or shall be construed to give any person other than the
parties to this Agreement and their respective successors or permitted assigns
any legal or equitable right, remedy or claim under or in respect of any
agreement or any provision contained herein.

               (b) WAIVER. The waiver by either party hereto of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
preceding or succeeding breach and no failure by either party to exercise any
right or privilege hereunder shall be deemed a waiver of such party's rights or
privileges

                                       6
<PAGE>

hereunder or shall be deemed a waiver of such party's rights to exercise the
same at any subsequent time or times hereunder.

                  (c) SURVIVAL; REMEDY. The representations and warranties
contained in Section 4 of this Agreement shall survive for one year after the
Closing. The sole and exclusive remedy for any breach or inaccuracy of the
representations and warranties contained in Section 4 of this Agreement shall be
as set forth in Section 4 of the Institutional Stockholders' Agreement.

                  (d) ATTORNEYS' FEES. At the Closing and only if there is a
Closing, the Company will reimburse the Purchaser for its reasonable attorneys'
fees for the review and negotiation of this Agreement and the Institutional
Stockholders' Agreement, not to exceed $________.1/

                  (e) AMENDMENTS. This Agreement may be amended, modified or
supplemented only by the written agreement of the parties hereto executed by the
Purchaser and the Company.

                  (f) ASSIGNABILITY. Neither this Agreement nor any right,
remedy, obligation or liability arising hereunder or by reason hereof shall be
assignable by either the Company or the Purchaser without the prior written
consent of the other party.

                  (g) GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with, the law of the State of New York, without giving
effect to the choice of law principles thereof.

                  (h) NOTICES. All notices and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if (A) delivered personally, (B) mailed, certified or
registered mail with postage prepaid, (C) sent by next-day or overnight mail or
delivery or (D) sent by fax, as follows: if to the Purchaser, to the Purchaser
at the address set forth under the Purchaser's name on the signature page of
this Agreement or to such other person or

----------------------
         1$5,000 per bank. For banks investing with multiple funds, the $5,000
cap will be split equally among the funds.

                                        7
<PAGE>

address as the Purchaser shall specify by notice in writing to the Company; and
if to the Company, to it at 521 East Morehead Street, Suite 250, Charlotte,
North Carolina 28202, Attention: Mr. Walter E. Leach, Jr. All such notices,
requests, demands, letters, waivers and other communications shall be deemed to
have been received (W) if by personal delivery, on the day after such delivery,
(X) if by certified or registered mail, on the fifth business day after the
mailing thereof, (Y) if by next-day or overnight mail or delivery, on the day
delivered or (Z) if by fax, on the next day following the day on which such fax
was sent, provided that a copy is also sent by certified or registered mail.

                  (i) HEADINGS. The headings contained herein are for
convenience only and shall not control or affect the meaning or interpretation
of any provision hereof.

                  (j) COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and which
together shall constitute one and the same agreement.

                  (k) TERMINATION. In the event the Stock Purchase Agreement is
terminated, this Agreement shall automatically terminate, without any liability
on the part of either party.

                  (l) SEVERABILITY. In case any provision of this Agreement
shall be invalid or unenforceable in any jurisdiction, the validity and
enforceability of the remaining provisions shall not in any way be affected
thereby.

                  (m) ENTIRE AGREEMENT. The Institutional Stockholders'
Agreement and this Agreement shall constitute the entire agreement of the
parties hereto with respect to the subject hereof and shall supersede all prior
agreements, arrangements, understandings, documents, instruments and
communications, whether written or oral, with respect to such subject matter.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>

                  IN WITNESS WHEREOF, the Company and the Purchaser have
executed this Agreement as of the date set forth below.

Date:  January 31, 2000

                                        MJD COMMUNICATIONS, INC.

                                        By:  /s/ WALTER E. LEACH, JR.
                                            ------------------------------------
                                            Name:  Walter E. Leach Jr.
                                            Title: Senior Vice President and CFO

Total number of shares                  TRV EXECUTIVES FUND, L.P.
of Class C Common Stock                 By: GREENWICH STREET INVESTMENTS II,
subscribed for:                         L.L.C., its General Partner

    710        Shares                   By:    /s/ SANJAY H. PATEL
--------------                              ------------------------------------
                                              Name: Sanjay H. Patel
                                              Title:   Managing Member
Purchase Price for                      Address of Purchaser:
Shares of Class C
Common Stock                            Greenwich Street Capital Partners
subscribed for:                         388 Greenwich Street, 36th Floor
                                        New York, NY 10013
$ 44,030.20

         [Counterparts of this page were executed by each party listed on
         Exhibit A to the Institutional Stockholders' Agreement]

           [Institutional Stockholder Subscription Agreement Signature Page]

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