Document:

<Page>

Exhibit 10.12

               THIRD AMENDMENT AND LIMITED FORBEARANCE AND WAIVER

     THIRD AMENDMENT AND LIMITED FORBEARANCE AND WAIVER (this "AMENDMENT"),
dated as of December 19, 2001, among FAIRPOINT COMMUNICATIONS SOLUTIONS CORP., a
Delaware corporation (the "BORROWER"); the Credit Parties (other than the
Parent) listed on the signature pages hereof, for purposes of Section D hereof
only; the Parent, for purposes of Section E hereof only; the lenders party to
the Credit Agreement referred to below (each, a "LENDER" and, collectively, the
"LENDERS"); and FIRST UNION NATIONAL BANK, as Administrative Agent (in such
capacity, the "ADMINISTRATIVE AGENT"). Unless otherwise defined herein,
capitalized terms used herein and defined in the Credit Agreement referred to
below (as amended hereby) are used as so defined.

                              W I T N E S S E T H :

     WHEREAS, the Borrower, the Lenders and the Administrative Agent have
entered into that certain Amended and Restated Credit Agreement, dated as of
October 20, 1999, as amended and restated as of March 27, 2000, as further
amended and restated as of November 9, 2000 and as amended by the First
Amendment dated as of March 9, 2001 and further amended by the Second Amendment
and Limited Waiver dated as of November 28, 2001 (as so amended and amended and
restated, the "CREDIT AGREEMENT"); and

     WHEREAS, the Borrower has entered into an agreement to sell certain assets
(the "NORTHEAST ASSETS") relating to its business and operations as presently
conducted in the states of Pennsylvania, New York, Maine, New Hampshire, and
Massachusetts to Choice One Communications, Inc. ("CHOICE ONE") and certain
subsidiaries of Choice One, for consideration including, but not limited to, (i)
an amount of $1,500,000 in cash, (ii) 2.5 million shares of Choice One's
unregistered common stock (subject to an increase by up to 2 million additional
shares of such stock, on the terms set forth in the Northeast Asset Sale
Agreement), and (iii) an amount of cash equal to 85% of the aggregate amount of
accounts receivable of the Borrower relating to the Northeast Assets (as
adjusted in accordance with the Northeast Asset Sale Agreement) as of the
closing of the Northeast Asset Sale; and

     WHEREAS, the Borrower has requested that Lenders waive, and Lenders have
agreed to waive, subject to the terms and conditions set forth below, certain
restrictions contained in Section 5.02(d) and 9.02 of the Credit Agreement with
respect to the contemplated sale of the Northeast Assets, with the disposition
of all proceeds thereof to be effectuated in the manner set forth in this
Amendment, including for the repayment of the Loans; and

     WHEREAS, the Borrower has requested that Lenders agree to forbear, and
Lenders have agreed to forbear, from exercising remedies on account of certain
defaults that may occur between the date hereof and March 31, 2002; and

<Page>

         WHEREAS, subject to the terms and conditions set forth below, the
parties hereto wish to amend the Credit Agreement as provided herein;

                                        2
<Page>

     NOW, THEREFORE, it is hereby agreed that;

A. AMENDMENTS TO CREDIT AGREEMENT

         1. Section 1 of the Credit Agreement is hereby amended by inserting
therein the following new defined terms in appropriate alphabetical order:

         "Budget Period" shall mean the time period from December 24, 2001
     through March 31, 2002.

         "Choice One" shall means Choice One Communications, Inc., a Delaware
     corporation.

         "Choice One Stock" shall mean any capital stock or other equity
     interests of Choice One received or receivable from time to time by the
     Borrower in connection with the Northeast Asset Sale.

         "Northeast Asset Sale" shall mean the sales of receivables, equipment
     and other assets contemplated by the Northeast Asset Sale Agreement.

         "Northeast Asset Sale Cash Proceeds" shall mean all cash received or
     receivable from time to time by the Borrower and its Subsidiaries arising
     from the Northeast Asset Sale.

         "Northeast Asset Sale Agreement" shall mean that certain Network
     Transition Agreement dated as of November 7, 2001, by and between Choice
     One, Choice One Communications of New York, Inc., Choice One Communications
     of Pennsylvania, Inc., Choice One of New Hampshire, Inc., Choice One
     Communications of Massachusetts, Inc. and Choice One Communications of
     Maine, Inc. (collectively, the "Choice One Parties") and the Borrower, as
     such agreement is in effect on the Third Amendment Effective Date and as it
     may be amended, supplemented or otherwise modified by the Borrower and the
     Choice One Parties in a manner not materially adverse to the Lenders or
     with the consent of the Required Lenders.

         "Northeast Asset Sale Documents" shall mean, collectively, (i) the
     Northeast Asset Sale Agreement and (ii) the Management Services Agreement,
     the Non-Competition Agreement and the Investor Rights Agreement in the form
     delivered to the Collateral Agent in connection with the Third Amendment,
     as entered into by the Borrower and the Choice One Parties upon closing of
     the Northeast Asset Sale and as they may be amended, supplemented or
     otherwise modified to the extent permitted under Section 9.20.

         "Third Amendment" shall mean the Third Amendment and Limited
     Forbearance and Waiver to this Agreement dated as of December 19, 2001.

         "Third Amendment Effective Date" shall have the meaning assigned to
     that term in the Third Amendment.

                                        3
<Page>

         "Weekly Cash Budget" shall mean the consolidated weekly cash budget for
     the Borrower and its Subsidiaries for the period from November 24, 2001
     through May 30, 2002, in the form delivered to the Lenders on December 5,
     2001 with such subsequent modifications thereto as may be approved by the
     Administrative Agent, setting forth projected cash receipts and cash
     expenditures for each such week and the projected balance of available cash
     during each such week.

         2. Section 5.02(d) of the Credit Agreement is hereby amended by adding
at the end thereof the following sentence:

         "Notwithstanding anything contained in this Agreement to the contrary,
     upon receipt by the Borrower or any of its Subsidiaries of any Northeast
     Asset Sale Cash Proceeds, the Borrower and such Subsidiaries shall (i)
     apply the first $5,300,000 in the aggregate of such Northeast Asset Sale
     Cash Proceeds (which shall be received simultaneously with the closing of
     the Northeast Asset Sale) as a mandatory repayment or repayments of
     outstanding Loans, in each case on the date of receipt thereof, and (ii)
     after the Borrower and its Subsidiaries shall have received $6,800,000 in
     the aggregate of Northeast Asset Sale Cash Proceeds (including amounts
     applied to repayment of Loans in accordance with clause (i)), apply 50% of
     any Northeast Asset Sale Cash Proceeds received in excess of such amount as
     a mandatory repayment or repayments of outstanding Loans, in each case on
     the date of receipt thereof. The Borrower and its Subsidiaries may apply
     any portion of the Northeast Asset Sale Cash Proceeds not required to be
     applied to repayment of the Loans for general corporate purposes not
     otherwise prohibited under this Agreement or the other Credit Documents".

         3. Section 8.01(f) of the Credit Agreement is hereby amended by
deleting the phrase "five Business Days" contained therein and substituting the
phrase "ten days" therefor.

         4. Section 8 of the Credit Agreement is hereby amended by adding at the
end thereof the following new Sections 8.11 and 8.12:

         "8.11 NORTHEAST ASSET SALE PROCEEDS. Prior to the consummation of the
     Northeast Asset Sale, the Borrower shall provide the Collateral Agent with
     evidence reasonably satisfactory to the Collateral Agent that the Borrower
     has made arrangements to pay, immediately upon receipt thereof, $5,300,000
     of Northeast Asset Sale Cash Proceeds to the Collateral Agent as a
     repayment of the Loans pursuant to Section 5.02(d). On the date of
     consummation of the Northeast Asset Sale, the Borrower shall take all such
     actions as the Collateral Agent may reasonably require to create under the
     Amended and Restated Pledge Agreement in favor of the Secured Creditors a
     perfected security interest in the Choice One Stock free of adverse claims,
     and upon receipt thereafter of any additional Choice One Stock, the
     Borrower shall take all such actions as the Collateral Agent may reasonably
     require to create under the Amended and Restated Pledge Agreement in favor
     of the Secured Creditors a perfected security interest in such Choice One
     Stock free of adverse claims.

         8.12 WEEKLY CASH BUDGET AND CASH REPORTS. The Borrowers will furnish to
     the Administrative Agent and the Lenders, commencing on January 4, 2002
     (for the week of

                                        4
<Page>

     December 24 through December 30, 2001) and by no later than Friday of each
     week thereafter, a report for the week most recently ended setting forth
     (i) actual cash receipts and cash expenditures of the Borrower and its
     Subsidiaries for such week with respect to each line item described in the
     Weekly Cash Budget, (ii) actual aggregate cash receipts and aggregate cash
     expenditures of the Borrower and its Subsidiaries for such week (and on a
     cumulative basis through the Budget Period), as well as the actual balance
     of available cash, (iii) the percentage and dollar variance of such amounts
     and the aggregate of such amounts from the projected amounts therefor set
     forth in the Weekly Cash Budget, and (iv) a narrative analysis of each such
     reported variance".

         5. Section 9.01 is hereby amended by adding at the end thereof the
following sentence:

         "Notwithstanding the foregoing, the Borrower and its Subsidiaries shall
     not be in breach of this Section 9.01 after the Third Amendment Effective
     Date so long as the Borrower and its Subsidiaries thereafter engage in
     business activities taken as a whole that are not materially different from
     (i) the business activities taken as a whole (including incidental
     activities) conducted by the Borrower and its Subsidiaries immediately
     after the consummation of the Northeast Asset Sale and (ii) businesses
     reasonably related thereto and related to the wind-down of those businesses
     sold in the Northwest Asset Sale and the Northeast Asset Sale".

         6. Section 9 of the Credit Agreement is hereby amended by adding at the
end thereof the following new Section 9.20:

         "Section 9.20 AMENDMENT OR WAIVER OF THE NORTHEAST ASSET SALE
     DOCUMENTS. Neither Borrower nor any of its Subsidiaries will agree to any
     amendment or modification to, or waive any of its material rights under,
     any Northeast Asset Sale Document after the Third Amendment Effective Date
     if the effect of such amendment, modification or waiver, together with any
     other amendments, modifications or waivers made, would be materially
     adverse to the Lenders, without in each case obtaining the prior written
     consent of the Required Lenders".

         7. Section 10.03 of the Credit Agreement is hereby amended by adding
",Section 8.11" immediately following the reference to "Section 8.09" contained
therein.

B. LIMITED FORBEARANCE AND WAIVER

         1. Effective as of the Third Amendment Effective Date, the Lenders
hereby waive (a) the requirements that the Borrower deliver (i) the monthly
reports and other items required under Section 8.01(c) of the Amended Agreement
and (ii) the budget and other items required under Section 8.01(d) of the
Amended Agreement for the 2002 fiscal year, (b) any breach by the Borrower of
Section 8.01(f) of the Amended Agreement for failure to deliver notice of the
commencement of the litigation listed on Annex A hereto, (c) the restrictions
imposed under Section 9.02 of the Amended Agreement to permit the sale of the
Northeast Assets as contemplated pursuant to the Northeast Asset Sale Agreement
and (d) the requirement imposed under Section 5.02(d) of the Amended Agreement
to permit all of the Net Cash

                                        5
<Page>

Proceeds of such sale of the Northeast Assets to be applied as set forth in this
Amendment, and hereby authorize and request the Collateral Agent to (X) deliver
to the Borrower at the closing of such Asset Sale all applicable UCC-3
termination statements requested by the Borrower and (Y) release any Lien
granted to or held by the Collateral Agent or the Lenders securing Obligations
under the Credit Documents to the extent that such Lien covers such Northeast
Assets (which release shall be deemed to occur automatically upon receipt by the
Borrower of the consideration under the Northeast Asset Sale Agreement for the
Northeast Assets); PROVIDED, that the Borrower shall (i) repay Loans with
Northeast Asset Sale Cash Proceeds to the extent required under Section 5.02(d)
and (ii) deliver, pledge and assign any and all Choice One Stock to the
Collateral Agent (for the benefit of the Secured Creditors) in accordance with
the requirements of Section 8.11 of the Amended Agreement.

         2. Subject to the terms and conditions set forth herein and in reliance
on the representations and warranties of the Borrower and the Credit Parties
herein contained, the Lenders hereby agree to forbear, from the Third Amendment
Effective Date until the earlier of (x) March 31, 2002 and (y) the date of
occurrence of a Forbearance Period Default (as hereinafter defined; the earlier
of such dates being the "FORBEARANCE TERMINATION DATE") from exercising remedies
pursuant to Section 10 of the Amended Agreement based upon (I) any Events of
Default under Section 10.03 of the Amended Agreement to the extent arising as a
result of (a) a breach of Section 9.05 of the Amended Agreement for the period
ending December 31, 2001, to the extent such breach arises solely as a result of
a change in accounting treatment with respect to expenditures incurred prior to
December 31, 2001, (b) a breach of Section 9.11 or 9.12 of the Amended
Agreement, whether such breach has occurred prior to the Third Amendment
Effective Date or arises after the Third Amendment Effective Date and prior to
the Forbearance Termination Date, or (c) a breach of Section 9.14 of the Amended
Agreement, to the extent such breach would not occur but for Extended Payables
Indebtedness being included in Consolidated Debt (the Events of Default
described in clauses (I)(a) through (I)(c) being, collectively, the "COVENANT
DEFAULTS"); (II) any Event of Default under Section 10.04(a) or (b) of the
Amended Agreement to the extent such Event of Default would not occur but for
Extended Payables Indebtedness becoming Indebtedness, whether such Event of
Default has occurred prior to the Third Amendment Effective Date or arises after
the Third Amendment Effective Date and prior to the Forbearance Termination
Date; PROVIDED, that Extended Payables Indebtedness, for purposes of this clause
(II), shall exclude any accounts payable with respect to which the payee thereof
has commenced or prosecuted any remedy against the Borrower or any of its
Subsidiaries or any of their properties (the Events of Default described in this
clause (II) being, collectively, the "PAYABLES DEFAULTS"); and (III) any Event
of Default under Section 10.07(b) of the Amended Agreement (whether such Event
of Default has occurred prior to the Third Amendment Effective Date or arises
after the Third Amendment Effective Date and prior to the Forbearance
Termination Date), except to the extent such Event of Default affects the
Collateral Agent and the Lenders adversely after the Third Amendment Effective
Date with respect to a material portion of the Collateral or the Choice One
Stock pledged under the Amended and Restated Pledge Agreement (the Events of
Default described in this clause (III) being, collectively, the "SECURITY
DOCUMENT DEFAULTS"). On the Forbearance Termination Date, the agreement to
forbear set forth in the immediately preceding sentence shall be deemed null and
void as of the date hereof and of no further force and effect, without any
necessity of demand or notice, and on and after the Forbearance Termination
Date, the Lenders may declare a Default (or Event of Default, as the case may
be) and exercise remedies (including

                                        6
<Page>

without limitation the right to accelerate the Loan and all other Obligations
immediately to the extent that such acceleration could have occurred on or prior
to such date but for such agreement to forbear, notwithstanding any grace or
cure periods or other provisions to the contrary in the Credit Documents)
pursuant to Section 10 of the Amended Agreement with respect to any Covenant
Default, Payables Default or Security Document Default (in each case as if the
foregoing agreement to forbear had never been in effect), or any other Defaults
or Events of Default. As used in this Section, "FORBEARANCE PERIOD DEFAULT"
shall mean any Event of Default other than the Covenant Defaults, the Payables
Defaults or the Security Document Defaults; and "EXTENDED PAYABLES INDEBTEDNESS"
shall mean any Indebtedness consisting of accounts payable which are outstanding
prior to December 31, 2001 and become "Indebtedness" after December 31, 2001 due
to failure to pay such accounts payable within 90 days of the date such amounts
are due and payable.

C. LIMITATION OF FORBEARANCE AND WAIVERS

         The forbearance, waivers and authorizations set forth above shall be
limited precisely as written and shall relate solely to the Borrower's
non-compliance with the provisions of the Credit Agreement in the manner and to
the extent described above, and shall in no event (1) amend or constitute a
waiver of compliance by the Borrower with respect to (a) Section 5.02(d),
8.01(c), 8.01(d), 8.01(f) or 9.02 of the Credit Agreement or the Amended Credit
Agreement (as the case may be) in any other instance, (b) Section 10.03,
10.04(a), 10.04(b) or 10.07(b) or any other term, provision or condition of the
Credit Agreement or the Amended Agreement (as the case may be), (c) the other
Credit Documents, or (d) any other instrument or agreement referred to therein,
or (2) except for the forbearance expressly provided for herein, prejudice any
right or remedy that the Administrative Agent or any Lender may now have or may
have in the future under or in connection with the Credit Agreement, the other
Credit Documents, any other instrument or agreement referred to therein or under
applicable law. Except as expressly set forth herein, the terms, provisions and
conditions of the Credit Agreement and the other Credit Documents shall remain
in full force and effect and in all other respects are hereby ratified and
confirmed.

D. ACKNOWLEDGMENT AND CONSENT

         1. The Security Documents and the Credit Documents to which the
Borrower and other Credit Parties are party are herein referred to collectively
as the "CREDIT SUPPORT DOCUMENTS". Each Credit Party (other than the Parent)
which is party to this Third Amendment (each a "CREDIT SUPPORT PARTY", and
collectively, "CREDIT SUPPORT PARTIES") hereby acknowledges that it has reviewed
the terms and provisions of the Credit Agreement and this Amendment. Each such
Credit Support Party hereby confirms that each Credit Support Document to which
it is a party or otherwise bound and all Collateral encumbered thereby (after
giving effect to the transactions contemplated hereby) will continue to guaranty
or secure, as the case may be, to the fullest extent set forth therein the
payment and performance of all "Guaranteed Obligations" and "Obligations" as the
case may be (in each case as such terms are defined in the applicable Credit
Support Document), including without limitation the payment and performance of
all such "Guaranteed Obligations" or "Obligations", as the case may be, in
respect of the Obligations of the Borrower now or hereafter existing under or in
respect of the Credit Agreement as amended by this Amendment (the "AMENDED
AGREEMENT") and the other

                                        7
<Page>

Credit Documents. Each such Credit Support Party acknowledges and agrees that
any of the Credit Support Documents to which it is a party or otherwise bound
shall continue in full force and effect and that all of its obligations
thereunder shall be valid and enforceable and shall not be impaired or limited
by the execution or effectiveness of this Amendment. Each Credit Support Party
(other than the Borrower) acknowledges and agrees that (i) notwithstanding the
conditions to effectiveness set forth in this Amendment, such Credit Support
Party is not required by the terms of the Credit Agreement or any other Credit
Document to consent to this Amendment, and (ii) nothing in the Amended
Agreement, this Amendment or any other Credit Document shall be deemed to
require the consent of such Credit Support Party to any future consents or
waivers to the Amended Agreement.

         2. No Agent nor any Lender has or shall have, by reason of this
Amendment, the Credit Agreement or the other Credit Documents, a fiduciary
relationship in respect of the Borrower, any other Credit Party or Credit
Parties.

         3. Each Credit Support Party hereby confirms, reaffirms and
acknowledges (i) that the Collateral Agent (for the benefit of the Secured
Creditors (as defined in each of the Credit Support Documents)) has a fully
perfected first Lien on, and security interest in, all right, title and interest
of such Credit Support Party in the Collateral (it being understood that such
security interest in the Northeast Assets shall be released as contemplated
hereby), subject to no other Liens (other than Permitted Liens) and (ii) the
continuing validity and effectiveness of the Collateral Agent's and Secured
Creditors' rights under the Credit Documents and applicable law.

         4. Except as expressly set forth in this Amendment, each of the
undersigned hereby acknowledges and agrees that the execution and delivery by
any Agent and the Lenders of this Amendment shall not be deemed (i) to create a
course of dealing or otherwise obligate any Agent or the Lenders to forbear or
execute similar agreements under the same or similar circumstances in the
future, (ii) to modify, relinquish or impair any right of any Agent or the
Lenders to receive any indemnity or similar payment from, or exercise any rights
granted by, any Person or entity as a result of any matter arising from or
relating to this Amendment, (iii) to waive any right of the Lenders to receive
interest at an increased rate as a result of any Events of Default that may
occur under the Credit Agreement, (iv) to obligate any Agent or the Lenders in
any way to forbear from individually or collectively enforcing remedies under
the Credit Agreement in any manner or (v) a commitment from or of any Agent or
the Lenders to forbear or "stand still". Except as expressly set forth in this
Amendment, no past or future forbearance on the part of any Agent or the Lenders
should be viewed as a limitation upon or waiver of the absolute right and
privilege of any Agent or the Lenders in exercising rights and remedies that
currently exist or may exist after the Third Amendment Effective Date.

E. ACKNOWLEDGMENT BY PARENT

         The Parent hereby acknowledges and agrees that the execution, delivery
and effectiveness of this Amendment do not impair, limit or otherwise affect
adversely to the Lenders the Parent's obligations under the Amended and Restated
Preferred Stock Issuance and Capital Contribution Agreement.

                                        8
<Page>

F. MISCELLANEOUS PROVISIONS

         1. In order to induce the Lenders to enter into this Amendment, the
Borrower hereby represents and warrants that (i) the representations and
warranties contained in the Credit Agreement and in the other Credit Documents
are true and correct in all material respects on and as of the Third Amendment
Effective Date (except (a) with respect to any representations and warranties
limited by their terms to a specific date, which shall be true and correct in
all material respects as of such date, (b) to the extent such representations
and warranties are not true and correct solely as a result of the Northwest
Asset Sale, and (c) to the extent that the representations and warranties in
Section 7.04 of the Credit Agreement are not true or correct solely due to those
pending or threatened proceedings described in Annex A and Annex B hereto) and
(ii) there exists no Default or Event of Default under the Credit Agreement on
the Third Amendment Effective Date, in each case both before and after giving
effect to this Amendment.

         2. This Amendment is limited as specified and shall not constitute an
amendment, modification, acceptance or waiver of any other provision of the
Credit Agreement or any other Credit Document, and, except as expressly set
forth herein, no waiver or amendment contained herein shall be deemed to
prejudice any right or remedy that any Agent or Lender may now have or may have
in the future under or in connection with the Credit Agreement or any other
agreement or instrument referred to therein. Each of the Agents and Lenders
hereby expressly reserves all such rights and remedies.

         3. This Amendment may be executed in any number of counterparts and by
the different parties hereto on separate counterparts, each of which
counterparts when executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A complete set of
counterparts shall be lodged with the Borrower and the Administrative Agent.

         4. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK.

         5. This Amendment shall become effective on the date (the "THIRD
AMENDMENT EFFECTIVE DATE") when (i) the Borrower, the other Credit Parties, the
Administrative Agent, the Collateral Agent and the Lenders shall have signed a
counterpart hereof (whether the same or different counterparts) and shall have
delivered (including by way of telecopier) the same to the Administrative Agent
at the Notice Office, and (ii) the Borrower shall have delivered to the
Administrative Agent a certificate of an Authorized Officer of the Borrower
certifying that the projections in the Weekly Cash Budget are based on good
faith estimates and assumptions believed by the Borrower to be reasonable on the
Third Amendment Effective Date.

         6. The Borrower acknowledges that all reasonable out-of-pocket costs
and expenses as described in Section 12.01 of the Credit Agreement incurred by
the Agents (including, without limitation, the reasonable fees and disbursements
of O'Melveny & Myers LLP) with respect to this Amendment and the documents and
transactions contemplated hereby shall be for the account of the Borrower.

                                        9
<Page>

         7. From and after the Third Amendment Effective Date, all references in
the Credit Agreement and in the other Credit Documents to the Credit Agreement
shall be deemed to be references to the Amended Agreement.

                  [Remainder of page intentionally left blank.]

                                       10
<Page>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
be duly executed and delivered as of the date first above written.

CREDIT PARTIES:                   FAIRPOINT COMMUNICATIONS
                                  SOLUTIONS CORP.

                                  By: /s/ Walter E. Leach, Jr.
                                     --------------------------
                                     Name:  Walter E. Leach, Jr.
                                     Title: Senior Vice President & CFO

                                  FAIRPOINT COMMUNICATIONS
                                  SOLUTIONS CORP. - NEW YORK

                                  By: /s/  Walter E. Leach, Jr.
                                     --------------------------
                                     Name:  Walter E. Leach, Jr.
                                     Title: Senior Vice President & CFO

                                  FAIRPOINT COMMUNICATIONS
                                  SOLUTIONS CORP. - VIRGINIA

                                  By: /s/ Walter E. Leach, Jr.
                                     --------------------------
                                     Name:  Walter E. Leach, Jr.
                                     Title: Senior Vice President & CFO

                                  FAIRPOINT SOLUTIONS CAPITAL, LLC

                                  By: /s/ Walter E. Leach, Jr.
                                     --------------------------
                                     Name:  Walter E. Leach, Jr.
                                     Title: Senior Vice President & CFO

                                  FAIRPOINT COMMUNICATIONS, INC. (for purposes
                                  of Section F only)

                                  By: /s/ Walter E. Leach, Jr.
                                     --------------------------
                                     Name:  Walter E. Leach, Jr.
                                     Title: Senior Vice President & CFO

                                       S-1
<Page>

LENDERS:                          BANK OF AMERICA, N.A.

                                  By: /s/ Ronald D. Savas
                                     --------------------
                                     Name:  Ronald D. Savas
                                     Title: Managing Director

                                  BANKERS TRUST COMPANY

                                  By: /s/ Anca Trifan
                                     -----------------
                                     Name:  Anca Trifan
                                     Title: Director

                                  FIRST UNION NATIONAL BANK,
                                  individually and as Administrative Agent and
                                  Collateral Agent

                                  By: /s/ Katherine A. Harkness
                                     --------------------------
                                     Name:  Katherine A. Harkness
                                     Title: Vice President

                                  CITICORP USA, INC.

                                  By: /s/ Michael C. Becker
                                     ----------------------
                                     Name:  Michael C. Becker
                                     Title: Sr. Vice President

                                  DLJ CAPITAL FUNDING, INC.

                                  By: /s/ David L. Sawyer &  /s/ Ian W. Nalitt
                                     -------------------------------------------
                                     Name:  David L. Sawyer / Ian W. Nalitt
                                     Title: Vice President / Associate

                                  COBANK, ACB

                                  By: /s/ John P. Cole
                                     ------------------
                                     Name:  John P. Cole
                                     Title: Vice President

                                       S-2
<Page>

                                  CIT GROUP/EQUIPMENT FINANCING, INC.

                                  By: /s/ Michael V. Monahan
                                     ------------------------
                                     Name:  Michael V. Monahan
                                     Title: Vice President

                                       S-3
<Page>

                                     ANNEX A

                                   LITIGATION

                                       A-1
<Page>

                                     ANNEX B

                              THREATENED PROCEEDING

                                       B-1<Page>

Exhibit 10.39

                              EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of
January 1, 2002 (the "Effective Date") by and between FAIRPOINT COMMUNICATIONS,
INC., a Delaware corporation (together with its successors and assigns permitted
hereunder, the "Company"), and EUGENE B. JOHNSON (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, as Chief Executive Officer, in accordance with the terms and provisions
of this Agreement for a period commencing on the date hereof and ending on March
31, 2003 (the "Employment Period"). 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 the Chief Executive Officer of the Company and as Vice
Chairman of the Company's Board of Directors and, in so doing, shall perform
normal duties and responsibilities associated with such positions.

               (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

<Page>

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

               (iii)  Notwithstanding Paragraph 2(a)(ii) hereof, 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, educational 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 of $285,000 (the
"Annual Base Salary"), which shall be paid in accordance with the customary
payroll practices of the Company.

               (ii)   BONUS. Executive may 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 senior executives
of the Company, as amended from time to time. Without limiting the foregoing,
Executive currently has 213,200 fully-vested options under the Company's 1995
Stock Option Plan (the "95 Plan") and 597,500 fully-vested options under the
Company's 1998 Stock Incentive Plan (the "98 Plan"). The Executive also has been
granted 298,750 options which are scheduled to vest on May 21, 2002 and 298,750
options which are scheduled to vest on May 21, 2003, each of which were granted
pursuant to the 98 Plan. All options granted to Executive under the 98 Plan
shall vest in accordance with the terms and conditions of the agreements
granting such options; PROVIDED, HOWEVER, that all such options shall vest
immediately upon the termination of Executive as Chief Executive Officer of the
Company as a result of either (x) the expiration of the Employment Period, (y) a
Change of Control (as defined below), or (z) the hiring of a new Chief Executive
Officer (other than upon Executive's termination for Cause). In addition, as
additional consideration for entering into this Agreement, the Company shall
grant to the Executive an option to purchase an additional 250,000 shares of
common stock of the Company under the 98 Plan, at an exercise price of $7.00 per
share (the "New Options"). The New Options shall vest as follows: 41,667 New
Options shall vest on the Effective Date and the remaining New Options shall
vest in fifteen (15) equal monthly installments of 13,888.87

                                        2
<Page>

shares on the last day of each month of the Employment Period, commencing
January 31, 2002; PROVIDED, HOWEVER, that all unvested New Options shall vest
immediately upon the termination of Executive as Chief Executive Officer of the
Company as a result of either (A) the hiring of a new Chief Executive Officer to
replace Executive (other than upon termination for Cause) or (B) a Change of
Control. The terms and conditions of the grant of the New Options shall be
governed by a stock option agreement between Executive and the Company in the
form attached hereto as EXHIBIT A.

               (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 $7,000 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 (import luxury or equivalent) expenses.

               (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
<Page>

     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 a
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 6(e) hereof of its intention to terminate the
Executive's employment. In such event, the Executive's employment with the
Company shall terminate effective on the ninetieth (90th) day after receipt of
such notice by the Executive (the "Disability Effective Date"), if, within
ninety (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 Executive'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.

         (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

                                        4
<Page>

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 6(e) of its intention to terminate the Executive's employment. Any such
termination by the Company as contemplated in this Section 3(c) 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 January 4, 2000, 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 fifty-one percent (51.0%) 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 given in accordance with Section 6(e). 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 fifteen (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(d), as the case may be, (ii) if the
Executive's employment is terminated by the Executive thirty (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.

                                        5
<Page>

     4.  OBLIGATIONS OF THE COMPANY UPON TERMINATION.

         (a)   If, during the Employment Period, the Company shall terminate
the Executive's employment for Cause or the Executive shall voluntarily resign,
the Executive shall not be entitled to any benefits pursuant to this Agreement.

         (b)   Upon the earliest of (A) expiration of the Employment Period, (B)
termination of the Executive's employment as Chief Executive Officer without
Cause (e.g., the Company hires a Chief Executive Officer to replace Executive)
or (C) termination of the Executive's employment as Chief Executive Officer upon
a Change of Control, the Executive shall be entitled to receive from the Company
the following, effective as of the date of occurrence of such event (the
"Termination Event"):

               (i)   title to two (2) permanent seat licenses with the Carolina
Panthers;

               (ii)  continued medical coverage for both Executive and
Executive's spouse until each are eligible for Medicare; and

               (iii) accelerated vesting of all options granted to Executive
under the 95 Plan and the 98 Plan, including the New Options, as of the date of
the Termination Event.

     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,

                                        6
<Page>

warranties, 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):

                      If to the Company, to:

                              FairPoint Communications, Inc.
                              521 East Morehead Street, Suite 250
                              Charlotte, North Carolina 28202
                              Facsimile:  (704) 344-1594
                              Attn:  Shirley J. Linn, Esq.

                      Copy to:

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

                      If to the Executive, to:

                              Eugene B. Johnson
                              920 Berkeley Avenue
                              Charlotte, North Carolina 28203

                                        7
<Page>

               (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
employment and severance agreements or arrangements between the Company and/or
any of its affiliates and the Executive, including but not limited to
Executive's employment agreement with the Company dated January 20, 2000.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                        8
<Page>

         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

                                        /s/ Eugene B. Johnson
                                    --------------------------------------------
                                    Eugene B. Johnson

                                    FAIRPOINT COMMUNICATIONS, INC.

                                    By:    /s/ Walter E. Leach, Jr.
                                       -----------------------------------------
                                       Name:  Walter E. Leach, Jr.
                                             -----------------------------------
                                       Title: Senior Vice President
                                             -----------------------------------

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]