Document:

<PAGE>

                                                                   EXHIBIT 10.1

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

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

                          NETWORK TRANSITION AGREEMENT

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

                          dated as of November 7, 2001

                                      among

                    FAIRPOINT COMMUNICATIONS SOLUTIONS CORP.,

                         CHOICE ONE COMMUNICATIONS INC.

                          and selected subsidiaries of

                         CHOICE ONE COMMUNICATIONS INC.

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

<PAGE>

                                TABLE OF CONTENTS
                                                                           PAGE
                                                                           ----
ARTICLE 1. DEFINITIONS........................................................1
   1.1.    Definitions........................................................1

ARTICLE 2. BASIC TRANSACTION..................................................8
   2.1.    Purchase and Sale of Assets........................................8
   2.2.    Assumption of Contracts and Liabilities............................9
   2.3.    Payment of Purchase Price..........................................9
   2.4.    The Closing.......................................................11
   2.5.    Closing Deliveries by the Seller..................................12
   2.6.    Closing Deliveries by the Buyer...................................13
   2.7.    Consents and Waivers..............................................14
   2.8.    Payment of Transfer Taxes.........................................15
   2.9.    Allocation........................................................15

ARTICLE 3. REPRESENTATIONS AND WARRANTIES  OF THE SELLER.....................15
   3.1.    Organization and Capitalization of the Seller.....................16
   3.2.    Authorization of Transaction......................................16
   3.3.    Noncontravention..................................................16
   3.4.    Financial Statements..............................................17
   3.5.    Intentionally Omitted.............................................17
   3.6.    Legal Compliance..................................................17
   3.7.    Tax Matters.......................................................17
   3.8.    Assumed Real Property.............................................17
   3.9.    Acquired Assets...................................................18
   3.10.   Intellectual Property............................................18
   3.11.   Assumed Contracts................................................19
   3.12.   Acquired Accounts Receivable.....................................19
   3.13.   Litigation.......................................................19
   3.14.   Employees........................................................19
   3.15.   Employee Benefits................................................20
   3.16.   Environment, Health and Safety...................................20
   3.17.   Customers........................................................21

                                      -i-

<PAGE>

   3.18.   Brokers' Fees....................................................22
   3.19.   Disclosure.......................................................22
   3.20.   Investment Intent................................................22

ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF THE BUYER.......................23
   4.1.    Organization......................................................23
   4.2.    Authorization of Transaction......................................24
   4.3.    Noncontravention..................................................24
   4.4.    The Buyer Shares..................................................24
   4.5.    Buyer Capitalization..............................................24
   4.6.    Commission Filings................................................24
   4.7.    Material Agreements...............................................25
   4.8.    Proceedings.......................................................25
   4.9.    Brokers or Finders................................................25
   4.10.   Transaction Agreement............................................25
   4.11.   Earnings Release.................................................26

ARTICLE 5. PRE-CLOSING COVENANTS.............................................26
   5.1.    General...........................................................26
   5.2.    Conduct of the Business...........................................26
   5.3.    Notices and Consents; Governmental Authorizations.................27
   5.4.    Determination of Fiber Assets.....................................28
   5.5.    Transfer of Fiber Assets..........................................28
   5.6.    Assumed Leases....................................................28
   5.7.    Preservation of Business..........................................28
   5.8.    Full Access.......................................................28
   5.9.    Notice of Developments............................................28
   5.10.   Exclusivity......................................................29
   5.11.   Representation on Buyer's Board of Directors.....................29
   5.12.   Interim Operations...............................................29
   5.13.   NetLever and Web Hosting Customers...............................29
   5.14.   Closing Deliveries...............................................29

ARTICLE 6. COVENANTS WHICH SURVIVE THE CLOSING...............................29
   6.1.    Confidentiality Covenant..........................................29

                                      -ii-

<PAGE>

   6.2.    Further Assurances................................................30
   6.3.    Disclosure of Breach or Futility..................................30
   6.4.    No Employee Liability.............................................30
   6.5.    Bulk Sales Laws...................................................30
   6.6.    Collection of Payments; Correspondence............................31
   6.7.    Sales And Transfer Taxes..........................................31

ARTICLE 7. CONDITIONS TO OBLIGATION TO CLOSE.................................31
   7.1.    Conditions to Obligation of the Buyer.............................31
   7.2.    Conditions to Obligation of the Seller............................32

ARTICLE 8. TERMINATION.......................................................33
   8.1.    Termination of Agreement..........................................33
   8.2.    Effect of Termination.............................................33

ARTICLE 9. INDEMNIFICATION...................................................34
   9.1.    Survival of Representations.......................................34
   9.2.    Indemnification of the Buyer......................................34
   9.3.    Indemnification of the Seller.....................................35
   9.4.    Procedure for Indemnification.....................................35
   9.5.    Limitations on Indemnity Obligations..............................37
   9.6.    Treatment of Indemnification Payments.............................38

ARTICLE 10. MISCELLANEOUS....................................................38
   10.1.   Press Releases and Public Announcements..........................38
   10.2.   No Third Party Beneficiaries.....................................38
   10.3.   Entire Agreement.................................................38
   10.4.   Succession and Assignment........................................38
   10.5.   Counterparts.....................................................39
   10.6.   Headings.........................................................39
   10.7.   Notices..........................................................39
   10.8.   Governing Law....................................................40
   10.9.   Amendments and Waivers...........................................40
   10.10.  Severability....................................................40
   10.11.  Expenses........................................................40

                                      -iii-
<PAGE>

   10.12.  Interpretation..................................................40
   10.13.  Construction....................................................40
   10.14.  Incorporation of Exhibits and Schedules.........................40
   10.15.  Specific Performance............................................41

                                      -iv-

<PAGE>

                          NETWORK TRANSITION AGREEMENT

         This NETWORK TRANSITION AGREEMENT (the "Agreement") is made this 7th
day of November, 2001, by and among FairPoint Communications Solutions Corp., a
Delaware corporation (the "Seller") and Choice One Communications Inc., a
Delaware corporation ("Buyer" or "Choice One"), Choice One Communications of New
York Inc., a Delaware corporation ("Choice One of New York"), Choice One
Communications of Pennsylvania Inc., a Delaware corporation ("Choice One of
Pennsylvania"), Choice One of New Hampshire Inc., a Delaware corporation
("Choice One of New Hampshire"), Choice One Communications of Massachusetts
Inc., a Delaware corporation ("Choice One of Massachusetts"), Choice One
Communications of Maine Inc., a Delaware corporation ("Choice One of Maine", and
together with Choice One of New York, Choice One of Pennsylvania, Choice One of
New Hampshire and Choice One of Massachusetts, the "Subsidiaries").

                              W I T N E S S E T H:

         WHEREAS, the Seller is a competitive local exchange carrier engaged in
providing telecommunications services; and

         WHEREAS, the Seller desires to sell and transfer and the Buyer desires
to purchase and acquire certain assets and rights, as set forth in the schedules
attached hereto, in exchange for the Purchase Price and the assumption of
certain liabilities as specified herein, on the terms and conditions set forth
in this Agreement.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants hereinafter contained, the Seller agrees with the Buyer as follows:

                                   ARTICLE 1.

                                   DEFINITIONS

         1.1. DEFINITIONS. For purposes of this Agreement, the following terms
have the meanings set forth below:

         "AAA" has the meanings set forth in Section 2.3(b)(v) hereof.

         "ACCOUNTS RECEIVABLE PAYMENT" has the meaning set forth in Section
2.3(a)(iii) hereof.

         "ACQUIRED ACCOUNTS RECEIVABLE" shall mean the outstanding unpaid
accounts receivable on the Closing Date for all retail telecommunications
services provided to the Clients in the Markets as of the Closing Date, plus any
Unbilled Usage Charges. Acquired Accounts Receivable shall not include
receivables with respect to access charges or reciprocal compensation charges.

         "ACQUIRED ACCOUNTS RECEIVABLE REPORT" shall mean the written report
delivered to Buyer by Seller setting forth the Acquired Accounts Receivable as
of the Closing Date.

<PAGE>

         "ACQUIRED ASSETS" shall mean (a) the Massachusetts Assets, (b) the
Maine Assets, (c) the New Hampshire Assets, (d) the New York Assets, (e) the
Pennsylvania Assets, (f) the Albany Assets, (g) all Software, (h) the Assumed
Contracts, (i) the Acquired Accounts Receivable, and (j) customer records (other
than those that constitute Excluded Assets), co-location drawings and
specifications and promotional materials.

         "AFFILIATE" means with respect to any Person, any other Person
controlling, controlled by or under common control with such Person. For
purposes of this definition, "control" (including, with correlative meaning, the
term "controlled by"), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities or by contract or otherwise.

         "AGREEMENT" means this Network Transition Agreement, as the same may be
amended from time to time in accordance with the terms hereof.

         "ALBANY ASSETS" shall mean all right, title and interest in and to
those assets set forth in SECTION 1.1A of the Disclosure Schedule.

         "ALLOCATION" has the meaning set forth in Section 2.9 hereof.

         "ASSUMED CONTRACTS" means (a) those contracts, purchase orders and
agreements, including employee confidentiality and non-competition agreements,
listed in SECTION 2.2(a) of the Disclosure Schedule attached hereto, (b) the
Client Contracts, (c) the Software and (d) the Real Property Leases.

         "ASSUMED LEASES" has the meaning set forth in Section 5.8 hereof.

         "ASSUMED LIABILITIES" means only obligations (a) that arise under the
Assumed Contracts after the Closing and that do not arise out of (i) any breach
or default by Seller or its Affiliates, or (ii) facts that, with notice or a
lapse of time or both, would constitute a default on the part of any Seller or
its Affiliates in the performance of any of the Assumed Contracts and (b)
related to the ownership and operation of the Acquired Assets after the Closing.

         "ASSUMED REAL PROPERTY" has the meaning set forth in Section 3.8
hereof.

         "BASIS" means any past or present fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act or transaction that forms or could form the basis for any
specified consequence.

         "BUSINESS DAY" means Monday through Friday, excluding any such day on
which banks are authorized to be closed in the State of New York.

         "BUYER" has the meaning set forth in the preface above.

         "BUYER INDEMNITEES" has the meaning set forth in Section 9.2 hereof.

         "CERCLA" has the meaning set forth in Section 3.16(c) hereof.

                                       2
<PAGE>

         "COBRA PROVISIONS" has the meaning set forth in Section 6.4(b) hereof.

         "CASH" means cash, cash equivalents, marketable securities and
short-term investments.

         "CHOICE ONE" has the meaning set forth in the preface above.

         "CHOICE ONE OF MAINE" has the meaning set forth in the preface above.

         "CHOICE ONE OF MASSACHUSETTS" has the meaning set forth in the preface
above.

         "CHOICE ONE OF NEW HAMPSHIRE" has the meaning set forth in the preface
above.

         "CHOICE ONE OF NEW YORK" has the meaning set forth in the preface
above.

         "CHOICE ONE OF PENNSYLVANIA" has the meaning set forth in the preface
above.

         "CLIENTS" means those customers of the Seller which are parties to
Client Contracts.

         "CLOSING" has the meaning set forth in Section 2.4 hereof.

         "CLOSING CASH" has the meaning set forth in Section 2.3(a)(ii) hereof.

         "CLOSING DATE" has the meaning set forth in Section 2.4 hereof.

         "CLOSING PURCHASE PRICE" has the meaning set forth in Section
2.3(a)(iii) hereof.

         "CLOSING SHARES" has the meaning set forth in Section 2.3(a)(i) hereof.

         "CODE" means the Internal Revenue Code of 1986, as amended, or any
successor law, and regulations issued by the IRS pursuant to the Code or any
successor law.

         "COMMON STOCK" means unregistered common stock, par value $.01 per
share, of the Buyer.

         "CONSENT" means any approval, consent, ratification, waiver or other
authorization (including any Governmental Authorization) relating to the
Acquired Assets.

         "CONTINGENT PURCHASE PRICE" has the meaning set forth in Section 2.3
hereof.

         "CONTINGENT PURCHASE PRICE NOTICE" has the meaning set forth in Section
2.3(b)(iii) hereof.

         "DAMAGES" has the meaning set forth in Section 9.2 hereof.

         "DISAPPROVAL NOTICE" has the meaning set forth in Section 2.3(b)(iii)
hereof.

         "DISCLOSURE SCHEDULE" means the Disclosure Schedule accompanying this
Agreement.

         "EARNINGS RELEASE" has the meaning set forth in Section 4.11 hereto.

                                       3

<PAGE>

         "EFFECTIVE DATE" has the meaning set forth in the preface above.

         "EMPLOYEE BENEFIT PLAN" means: (i) any "employee benefit plan" as
defined in Section 3(3) of ERISA (including any "multiemployer plan" as defined
in Section 3(37) of ERISA), and (ii) all other contracts, programs or
arrangements to provide benefits (including, supplemental retirement, deferred
compensation, excess benefit, profit sharing, bonus, incentive, stock purchase,
stock ownership, stock option, stock appreciation right, employment, severance,
salary continuation, termination, change of control, vacation, educational
assistance, scholarship, moving expenses, holiday and any other fringe benefit
plan, contract, program or arrangement, whether written or unwritten, qualified
or nonqualified, funded or unfunded, and including any that have been frozen or
terminated) maintained, contributed to or required to be contributed to, by
Seller or any of its ERISA Affiliates for the benefit of any employee, former
employee, director, officer or independent contractor of Seller or under which
Seller or its ERISA Affiliates has any liability with respect to any employee,
former employee, director, officer or independent contractor of Seller.

         "ENCUMBRANCE" means any lien, pledge, mortgage, security interest,
claim, charge or other encumbrance, right or claim of any kind whatsoever, other
than liens for Taxes not yet due and payable.

         "ENVIRONMENT" means soil, land surface or subsurface strata, surface
waters, groundwaters, drinking water supply, stream sediments, ambient air and
all other environmental media.

         "ENVIRONMENTAL, HEALTH AND SAFETY LAWS" means any and all federal,
state and local laws, statutes, ordinances, judgments, decrees, licenses,
permits, rules and regulations, or other legally binding requirements relating
to pollution or protection of human health and the environment or worker health
and safety, including without limitation, laws, statutes, ordinances, judgments,
decrees, licenses, permits, rules and regulations or other binding requirements
relating to emissions, discharges, releases or threatened releases of any
Hazardous Material, or otherwise relating to the use, treatment, storage,
disposal, transport or handling of any Hazardous Material.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, any successor statute thereto and all final or
temporary regulations promulgated thereunder and generally applicable published
rulings entitled to precedential effect.

         "ERISA AFFILIATE" means (a) any corporation included with the Seller in
a controlled group of corporations within the meaning of Section 414(b) of the
Code, (b) any trade or business (whether or not incorporated) which is under
common control with the Seller within the meaning of Section 414(c) of the Code,
(c) any member of an affiliated service group of which the Seller is a member
within the meaning of Section 414(m) of the Code, or (d) any other Person
treated as an affiliate of the Seller under Section 414(o) of the Code.

         "EXCLUDED ASSETS" means the assets of the Seller set forth in SECTION
1.1B of the Disclosure Schedule, including Cash, any accounts receivables not
included in the definition of Acquired Accounts Receivable, notes due and
intercompany accounts.

                                       4

<PAGE>

         "EXCLUDED LIABILITIES" means all other Liabilities of the Seller which
are not Assumed Liabilities.

         "FAIR MARKET VALUE" has the meaning set forth in Section 9.4(h) hereof.

         "FIBER ASSETS" means the fiber assets located in Erie, Pennsylvania and
set forth in SECTION 1.1K of the Disclosure Schedule.

         "FIDUCIARY" has the meaning set forth in ERISA Section 3(21).

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

         "GOVERNMENTAL AUTHORIZATION" means any approval, consent, license,
permit, franchise, order, registration, qualification, accreditation, waiver,
variance, or other authorization relating to the Acquired Assets issued,
granted, given, or otherwise made available by or under the authority of any
Governmental Body or pursuant to any Legal Requirement.

         "GOVERNMENTAL BODY" means any (a) nation, state, county, city, town,
village, district, or other jurisdiction of any nature; (b) federal, state,
local, municipal, foreign, or other government; (c) governmental or
quasi-governmental authority of any nature (including any governmental agency,
branch, department, official, or entity and any court or other tribunal); or (d)
body exercising, or entitled to exercise, any administrative, executive,
judicial, legislative, police, regulatory, or taxing authority or power of any
nature.

         "GROSS PROFIT AND LOSS STATEMENT" means the unaudited gross profit and
loss statement of the Seller reflecting the operations for the Acquired Assets
for the six (6) month period ended September 30, 2001.

         "HAZARDOUS MATERIALS" means any waste, material or other substance that
is listed, defined, designated, classified, or regulated as, or otherwise
determined to be, hazardous, radioactive, or toxic or a pollutant under or
pursuant to any Environmental, Health and Safety Law, and specifically including
petroleum and all derivatives thereof and asbestos or asbestos-containing
materials.

         "INDEMNIFYING PARTY" has the meaning set forth in Section 9.4(a)
hereof.

         "INDEMNITEE" has the meaning set forth in Section 9.4(a) hereof

         "IRS" means the United States Internal Revenue Service or any successor
agency, and, to the extent relevant, the United States Department of the
Treasury.

         "KNOWLEDGE" means actual knowledge, without any special investigation,
of Tom Iachetta, Eugene Johnson, John Duda, John LaPenta, Walter E. Leach, Jr.,
Shirley J. Linn and Robert Ingram relating to a particular fact or other matter.

         "LEGAL REQUIREMENT" means any applicable federal, state, local,
municipal, foreign, international, multinational, or other administrative order,
constitution, law, ordinance, principle

                                       5

<PAGE>

of common law, rule, regulation, code, license, permit, standard, guideline,
statute or treaty, including, without limitation, those applicable to any Seller
or the Acquired Assets.

         "LIABILITY" means any liability (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated, and whether due or to become
due), including any liability for Taxes.

         "LINES" has the meaning set forth in Section 2.3(b)(ii) hereof.

         "MAINE ASSETS" shall mean all right, title and interest in and to those
assets set forth in SECTION 1.1C of the Disclosure Schedule.

         "MANAGEMENT SERVICES AGREEMENT" shall mean that certain management
services agreement between Choice One and Seller dated as of even date herewith.

         "MASSACHUSETTS ASSETS" shall mean all right, title and interest in and
to those assets set forth in SECTION 1.1D of the Disclosure Schedule.

         "MARKETS" shall mean only those markets set forth in SECTION 1.1E of
the Disclosure Schedule.

         "MAXIMUM INDEMNITY AMOUNT" has the meaning set forth in Section 9.5(a)
hereof.

         "MEASUREMENT DATE" has the meaning set forth in Section 2.3(b)(i)
hereof.

         "MULTIEMPLOYER PLAN" has the meaning set forth in ERISA Section 3(37)
and Code Section 414(f).

         "NEW HAMPSHIRE ASSETS" shall mean all right, title and interest in and
to those assets set forth in SECTION 1.1F of the Disclosure Schedule.

         "NEW YORK ASSETS" shall mean all right, title and interest in and to
those assets set forth in SECTION 1.1G of the Disclosure Schedule.

         "ON-NET LINES" has the meaning set forth in Section 2.3(b)(ii) hereof.

         "OPERATIVE DOCUMENTS" means this Agreement, the Exhibits and Schedules
to this Agreement, the Disclosure Schedule, the Management Services Agreement,
Investors Rights Agreement, and Covenant Not to Compete, and all other
instruments, certificates and agreements required hereby and thereby.

         "ORDER" means any award, decision, injunction, judgment, order, decree,
ruling, charge, subpoena, or verdict entered, issued, made, or rendered by any
court, administrative agency, or other Governmental Body or by any arbitrator.

                                       6
<PAGE>

         "ORDINARY COURSE OF BUSINESS" means with respect to an action taken by
a Person that:

                  (a) such action is consistent with the past practices of such
Person, is not of unusual size or duration and is taken in the ordinary course
of the normal day-to-day operations of such Person;

                  (b) such action is not required to be authorized by the board
of directors of such Person (or by any Person or group of Persons exercising
similar authority) and is not required to be specifically authorized by the
stockholders, members or partners of such Person; and

                  (c) such action is similar in nature and magnitude to actions
customarily taken, without any authorization by the board of directors (or by
any Person or group of Persons exercising similar authority), in the ordinary
course of the normal day-to-day operations of other Persons that are in the same
line of business as such Person.

         Notwithstanding the foregoing, in no event shall the "Ordinary Course
of Business" include any action that would cause the Seller to violate or breach
any contract, agreement, representation, or warranty made by it under this
Agreement.

         "PENNSYLVANIA ASSETS" shall mean all right, title and interest in and
to those assets set forth in SECTION 1.1H of the Disclosure Schedule.

         "PERMITTED LIENS" means those items listed in SECTION 1.1I of the
Disclosure Schedule.

         "PERSON" means an individual, a partnership, a corporation, an
association, a joint stock company, a limited liability company or partnership,
a trust, a joint venture, an unincorporated organization or a Governmental Body
(or any department, agency, or political subdivision thereof).

         "PROCEEDING" means any action, arbitration, audit, hearing,
investigation, litigation, or suit (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard by or
before, or otherwise involving, any Governmental Body or arbitrator.

         "PURCHASE PRICE" means the aggregate of the Closing Purchase Price and
the Contingent Purchase Price.

         "SELLER" has the meaning set forth in the preface above.

         "SELLER INDEMNITEES" has the meaning set forth in Section 9.3 hereof.

         "SELLER PLANS" has the meaning set forth in Section 3.15 hereof.

         "SOFTWARE" means the items listed in SECTION 1.1J of the Disclosure
Schedule.

         "SUBSIDIARIES" has the meaning set forth in the preface above.

                                       7

<PAGE>

         "SUBSIDIARY" means any corporation with respect to which a specified
Person (or a Subsidiary thereof) owns a majority of the common stock or has the
power to vote or direct the voting of sufficient securities to elect a majority
of the directors.

         "SWITCH SITE LEASE" means that certain NEON Interconnection Agreement
relating to premises at 1 Sundial Avenue, Manchester, New Hampshire.

         "TAX" or "TAXES" means any federal, state, local or foreign income,
gross receipts, license, payroll, employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental (including taxes under Code
Section 59A), customs duties, capital stock, franchise, profits, withholding,
social security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, registration, value added, alternative or add-on
minimum, estimated or other tax of any kind whatsoever, including any interest,
penalty or addition thereto, whether disputed or not.

         "TAXING AUTHORITY" means any Governmental Body, domestic or foreign,
having jurisdiction over the assessment, determination, collection, or other
imposition of any Tax.

         "TAX RETURN" means any return, declaration, report, claim for refund or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

         "THREATENED" A claim, Proceeding, dispute, action, or other matter will
be deemed to have been "Threatened" if any demand or statement has been made in
writing or any notice has been given in writing that would lead a prudent Person
to conclude that such a claim, Proceeding, dispute, action, or other matter is
likely to be asserted, commenced, taken, or otherwise pursued in the future.

         "THRESHOLD INDEMNITY AMOUNT" has the meaning set forth in Section
9.5(a) hereof.

         "TRANSACTION AGREEMENT" has the meaning set forth in Section 4.10
hereof.

         "TRANSACTION AGREEMENT AMENDMENT" has the meaning set forth in Section
5.11 hereof.

         "UNBILLED USAGE CHARGES" means the amounts billed by FairPoint in the
month subsequent to the Closing Date related to the customer usage charges
incurred during the preceding month but not yet billed.

                                   ARTICLE 2.

                                BASIC TRANSACTION

         2.1. PURCHASE AND SALE OF ASSETS. On and subject to the terms and
conditions of this Agreement, at the Closing the Buyer shall purchase and
acquire from Seller, and Seller shall sell, transfer, convey and deliver to the
Buyer, all right, title and interest in and to the Acquired Assets, free and
clear of any Encumbrance other than the Assumed Liabilities and the Permitted
Liens, for the consideration specified in Section 2.3 hereof. Except for the
Acquired Assets, the

                                       8

<PAGE>

Buyer will not purchase or acquire any asset of the Seller, including, but not
limited to, Seller's rights to the "FairPoint" brand, which shall not be
considered or deemed an Acquired Asset.

         2.2. ASSUMPTION OF CONTRACTS AND LIABILITIES. At Closing, subject to
Section 2.7, the Assumed Contracts listed in SECTION 2.2 of the Disclosure
Schedule will be assigned by the Seller to the Buyer.

                  (a) At the Closing, Buyer will assume and agree to pay,
perform and discharge the Assumed Liabilities. Except for the Assumed
Liabilities, the Buyer will not assume or have any responsibility with respect
to any obligation or Liability of any kind, whether known or unknown, contingent
or absolute and whether now existing or arising hereafter, of the Seller or with
respect to the Acquired Assets.

         2.3. PAYMENT OF PURCHASE PRICE. The Purchase Price shall consist of the
Closing Purchase Price (defined below) and the contingent purchase price
described in Section 2.3(b) hereof (the "Contingent Purchase Price"), each of
which is payable pursuant to the terms described below.

                  (a) Closing Purchase Price.

                      (i) At the Closing, the Buyer shall deliver to Seller Two
Million Five Hundred Thousand (2,500,000) restricted shares of the Buyer's
Common Stock, issued in a private placement to Seller and not registered under
the Securities Act of 1933, as amended (the "Closing Shares").

                      (ii) In addition, at the Closing, the Buyer shall deliver
to Seller a cash payment in an amount equal to One Million Five Hundred Thousand
and 00/100 Dollars ($1,500,000.00) payable by wire transfer of immediately
available funds (the "Closing Cash").

                      (iii) On the later of (x) the Closing or (y) five (5) days
after the date of delivery of the Acquired Accounts Receivable Report, Buyer
will pay to Seller, in the form of a wire transfer of immediately available
funds, an amount equal to eighty-five percent (85%) of the Acquired Accounts
Receivable, less the Unbilled Usage Charges (the "Accounts Receivable Payment"
and together with the Closing Shares and Closing Cash, the "Closing Purchase
Price"). For purposes hereof, the Acquired Accounts Receivable shall be
calculated in the following manner: (i) if the category of Acquired Accounts
Receivable that are greater than sixty (60) days past due exceeds thirteen
percent (13%) of the total Acquired Accounts Receivable, the Acquired Accounts
Receivable shall be reduced by an amount equal to such excess; and (ii) if the
category of Acquired Accounts Receivable that are between thirty (30) and sixty
(60) days past due exceeds seven percent (7%) of the total Acquired Accounts
Receivable, the Acquired Accounts Receivable shall be reduced by an amount equal
to twenty-five percent (25%) of such excess over seven percent (7%). All
calculations under this section shall be performed by the Seller subject to
Buyer's review and approval, which will not be unreasonably withheld.

                      (iv) Within thirty (30) days after Closing, the Seller
will deliver to the Buyer an electronic report setting forth the Unbilled Usage
Charges. Not later than five (5) days after the date of delivery of such report,
the Buyer will pay to the Seller, in the form of a wire

                                       9

<PAGE>

transfer of immediately available funds, an amount equal to the aggregate amount
of Unbilled Usage Charges set forth therein. All calculations under this section
shall be performed by the Seller subject to Buyer's review and approval, which
will not be unreasonably withheld.

                  (b) Contingent Purchase Price.

                      (i) On a date one hundred fifty (150) days after Closing,
the Buyer shall issue to the Seller additional shares of Buyer's Common Stock
(the "Contingent Purchase Price") if, on the date one hundred twenty (120) days
after Closing (the "Measurement Date"), the number of Lines (as defined below
and accounted for in a report delivered to FairPoint no later than fifteen (15)
days after the Measurement Date) is equal to or greater than 40,000 and the
number of On-Net Lines (as defined below) is equal to or greater than 20,000.

                      (ii) The number of shares of the Buyer's Common Stock that
shall comprise the Contingent Purchase Price shall be based upon a two-element
measurement system, both elements of which must be achieved for the Seller to
earn the Contingent Purchase Price. The two elements shall include (i) the
number of equivalent access lines (including UNE loops, resale lines or UNE-P
lines and installed active channel T-1 lines and counted on a DS-0 basis) from
customers of the business that are converted to and in service by the Buyer
("Lines") and (ii) the number of Lines that are served by the Buyer's network
facilities (excluding resale lines and UNE-P lines) ("On-Net Lines"). Both Lines
and On-Net Lines will be measured as of the Measurement Date. Using the
aforementioned two-element system, the Contingent Purchase Price is determined
by reference to the appropriate row in the following chart that yields the
greatest number of shares:

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------
                  LINES                         ON-NET LINES                  SHARES
----------------------------------------------------------------------------------------------
<S>                                <C>     <C>                                <C>
Less than 40,000                     or    Less than 20,000                    None
----------------------------------------------------------------------------------------------
Equal to or Greater than 40,000     and    Equal to or Greater than 20,000     500,000
----------------------------------------------------------------------------------------------
Equal to or Greater than 45,000     and    Equal to or Greater than 27,000     1,000,000
----------------------------------------------------------------------------------------------
Equal to or Greater than 47,500     and    Equal to or Greater than 31,000     1,250,000
----------------------------------------------------------------------------------------------
Equal to or Greater than 50,000     and    Equal to or Greater than 35,000     1,500,000
----------------------------------------------------------------------------------------------
55,000 or Greater                   and    44,000 or Greater                   2,000,000 (max)

</TABLE>

Only one of the foregoing rows shall apply and there shall be no interpolation
between rows. In no event shall the number of shares to be issued under this
section exceed 2,000,000 shares of the Buyer's Common Stock.

                      (iii) Within one hundred thirty-five (135) days after
Closing, Buyer shall give a notice (the "Contingent Purchase Price Notice") to
the Seller, in reasonable detail, setting forth the calculation of the
Contingent Purchase Price. Upon two (2) days prior written request to Buyer,
Seller will be permitted reasonable opportunity to review the books and records
used by Buyer to calculate the Contingent Purchase Price. In the event that the
Seller shall disapprove of the Buyer's calculation of the Contingent Purchase
Price, the Seller shall deliver to Buyer written notice of such disapproval (the
"Disapproval Notice"), along with Seller's calculation of the Contingent
Purchase Price, and supporting data therefor, within fourteen (14) days after
the Contingent Purchase Price Notice is delivered to the Seller. If there is a
dispute, Buyer shall nonetheless issue to Seller the shares constituting the
Contingent Purchase Price as

                                       10

<PAGE>

set forth in the Contingent Purchase Price Notice on or before the 150th day
after the Closing. If the Seller is the prevailing party of any dispute, Buyer
shall issue, promptly after the resolution of such dispute, any shares of
Buyer's Common Stock owed to Seller.

                      (iv) In the absence of a resolution of the dispute as to
Contingent Purchase Price within thirty (30) days of Buyer's receipt of the
Disapproval Notice, the Contingent Purchase Price will be resolved by an
accounting firm mutually acceptable to both parties or, in the absence of
agreement, in accordance with the provisions below regarding the selection of an
arbitrator. The determination of any arbitrator or mutually acceptable
accounting firm, as the case may be, so selected shall be conclusive and binding
upon the parties, and the fees and expenses of such arbitrator, or mutually
acceptable accounting firm, as the case may be, under this Section shall be
borne by the non-prevailing party.

                      (v) In the event that the Seller and Buyer are unable to
resolve the Contingent Purchase Price within the thirty (30) day period set
forth above, and the parties are unable to select a mutually acceptable
accounting firm to resolve the dispute, the dispute shall be resolved by binding
arbitration administered by the American Arbitration Association ("AAA") under
the Commercial Arbitration Rules then in effect. The arbitration shall be
conducted by a single arbitrator in New York, New York. The parties agree that
for any individual to qualify as an arbitrator to hear this dispute, he or she
must be a certified public accountant who has not performed accounting or
auditing services for Buyer or the Seller or any of their respective affiliates.
In considering potential arbitrators, the parties and the AAA shall give
preference to individuals who are affiliated with an independent accounting firm
of nationally recognized standing. The parties shall endeavor to reach mutual
agreement on the identity of an arbitrator within twenty (20) days of the filing
of the demand for arbitration. If the parties are unable to do so, the
arbitrator will be selected pursuant to the procedures set forth in the
Commercial Arbitration Rules then in effect, consistent with the provisions in
this paragraph regarding the required and preferred qualifications for an
arbitrator. The arbitrator selected shall consider only matters relating to the
computation of the Contingent Purchase Price and his or her decision with
respect to that issue shall be final and binding upon the Seller and the Buyer.
Each party further agrees that the other party shall not be liable for punitive
or exemplary damages and the arbitrator shall have no authority to award the
same.

                  (c) Notwithstanding the foregoing, the number of shares which
Seller is entitled to receive pursuant to this Section 2.3 shall be adjusted to
take into account any stock splits, stock dividends, stock combinations and
similar transactions occurring between the date hereof and the issuance of such
shares. In addition, the rights granted to Seller under Section 3.1 of the
Investor Rights Agreement, in the form attached hereto as Exhibit F, shall have
the same effect as if Seller was issued the Closing Shares as of the date of
this Agreement; provided such rights shall not apply to rollover notes scheduled
to be issued by the Buyer on November 9, 2001 or the warrants to be issued in
connection therewith.

         2.4. THE CLOSING. Subject to the satisfaction or waiver of all
conditions to the obligations of the parties to consummate the transactions
contemplated hereby (other than conditions with respect to actions the
respective parties will take at the Closing), the closing of the transactions
contemplated by this Agreement (the "CLOSING") shall take place at the offices
of Nixon Peabody LLP, 1300 Clinton Square, Rochester, New York, or such other
place as

                                       11

<PAGE>

mutually agreed to by the parties, commencing at 9:00 a.m. local time on the
third Business Day after satisfaction of all conditions set forth in Article 7
hereof; or such other date as the parties may mutually determine (the "CLOSING
DATE").

         2.5. CLOSING DELIVERIES BY THE SELLER At the Closing, the Seller shall
execute and deliver or cause to be delivered:

                  (a) To Choice One of Maine, the right to immediate possession
of the Maine Assets and a Bill of Sale and General Assignment in the form
attached as EXHIBIT A with respect to the transfer of the Maine Assets.

                  (b) To Choice One of Massachusetts, the right to immediate
possession of the Massachusetts Assets and a Bill of Sale and General Assignment
in the form attached as EXHIBIT A with respect to the transfer of the
Massachusetts Assets.

                  (c) To Choice One of New Hampshire, the right to immediate
possession of the New Hampshire Assets and a Bill of Sale and General Assignment
in the form attached as EXHIBIT A with respect to the transfer of the New
Hampshire Assets.

                  (d) To Choice One of New York, the right to immediate
possession of the New York Assets and the Albany Assets and a Bill of Sale and
General Assignment in the form attached as EXHIBIT A with respect to the
transfer of the New York Assets and the Albany Assets.

                  (e) To Choice One of Pennsylvania, the right to immediate
possession of the Pennsylvania Assets and a Bill of Sale and General Assignment
in the form attached as EXHIBIT A with respect to the transfer of the
Pennsylvania Assets.

                  (f) To Choice One of New Hampshire, the right to immediate
possession of the premises that are the subject to the Switch Site Lease.

                  (g) To the Buyer and the Subsidiaries, such other instruments
of transfer and conveyance as may reasonably be requested by the Buyer and the
Subsidiaries, in each case executed by a duly authorized officer of the Seller.

                  (h) To the Buyer and the Subsidiaries, all Consents, as listed
in SECTION 2.7 of the Disclosure Schedule, of any Person, whether or not a party
to this Agreement, which are necessary for the Seller to effectuate the transfer
of the Acquired Assets and the consummation of the transactions contemplated by
this Agreement, including without limitation, the Consent of the Seller's
lenders.

                  (i) To the Buyer and the Subsidiaries, an Assignment and
Assumption Agreement, in the form attached as EXHIBIT B, executed by a duly
authorized officer of the Seller with respect to the Assumed Contracts.

                  (j) To the Buyer and the Subsidiaries, copies of the
discharges or pay-off letters, as applicable, of all Encumbrances, UCC financing
statements or other loan documents, if any, filed against the Acquired Assets.

                                       12

<PAGE>

                  (k) To the Buyer and the Subsidiaries an opinion of counsel to
Seller, addressed to Buyer, and dated as of the Closing Date, in a form
reasonably acceptable to the Buyer.

                  (l) To the Buyer and the Subsidiaries, certificates issued as
of a recent date by the Secretary of State in the jurisdiction of Seller's
organization and in each jurisdiction in which the Markets are located
certifying as to the legal existence and good standing of Seller and the payment
of all taxes.

                  (m) To the Buyer and the Subsidiaries, certificate of the
Secretary of Seller, in form reasonably satisfactory to the Buyer, dated the
Closing Date and certifying, as to (i) the Seller's organizational documents,
(ii) the incumbency and genuine signature of the Seller's officers who executed
the Operative Documents, and (iii) the resolutions of the Seller's Board of
Directors authorizing the Seller to execute, deliver and perform this Agreement,
the Operative Documents and all other documents and instruments required to
effect the transactions contemplated hereby and thereby, such resolutions having
been duly adopted and being in full force and effect on the date hereof and as
of the Closing Date.

                  (n) To the Buyer and the Subsidiaries, a certificate of an
officer of Seller dated the Closing Date and certifying that (i) the Seller's
representations and warranties contained in Article 3 are true and correct in
all material respects as provided in Section 7.1 on and as of the Closing Date
with the same force and effect as though made on such date and (ii) the
covenants and agreements of the Seller to be performed on or prior to the
Closing Date in accordance with this Agreement have been duly performed in all
material respects.

                  (o) To the Buyer, the Non-Competition Agreement in the form
attached hereto as EXHIBIT E.

                  (p) To the Buyer, the Investor Rights Agreement in the form
attached hereto as EXHIBIT F.

                  (q) To Choice One of Pennsylvania, if elected by Buyer
pursuant to Section 5.4 hereof, the right to immediate possession of, and good
and valid title to, the Fiber Assets, free of any liens.

                  (r) To the Buyer, such other agreements, instruments and
documents as the Buyer reasonably deems necessary to effect the transactions
contemplated hereby.

         2.6. CLOSING DELIVERIES BY THE BUYER. At the Closing, the Buyer and the
Subsidiaries (as applicable) will execute and deliver or cause to be delivered
to the Seller:

                  (a) The Closing Purchase Price pursuant to Section 2.3 hereof.

                  (b) A stock certificate representing the Closing Shares.

                  (c) The Assignment and Assumption Agreement executed by a duly
authorized officer of each of the Subsidiaries.

                                       13

<PAGE>

                  (d) A certificate issued as of a recent date by the Secretary
of State of the State of Delaware certifying as to the legal existence and good
standing of the Buyer and each of the Subsidiaries and foreign qualification in
each of the states in which the Markets are located.

                  (e) A certificate of the Secretary of Buyer and each of the
Subsidiaries, in form reasonably satisfactory to the Seller, dated the Closing
Date and certifying as to (i) its organizational documents and by-laws, (ii) the
incumbency and genuine signature of each of its officers who executed the
Operative Documents, and (iii) the resolutions of its Board of Directors,
authorizing it to undertake the transactions contemplated hereunder and
authorizing its signatories to execute and deliver this Agreement and all other
documents and instruments required to effect such transactions, such resolutions
having been duly adopted and being in full force and effect on the Closing Date.

                  (f) A Certificate of an officer of the Buyer and each of the
Subsidiaries dated the Closing Date and certifying that the representations and
warranties of the Buyer and each of the Subsidiaries contained in Article 4 are
true and correct in all material respects as provided in Section 7.2 on and as
of the Closing Date with the same force and effect as though made on such date
and (ii) the covenants and agreements of the Buyer to be performed on or prior
to the Closing Date in accordance with this Agreement have been duly performed
in all material respects.

                  (g) An opinion of counsel to Buyer and the Subsidiaries,
addressed to Seller, and dated as of the Closing Date, in a form reasonably
acceptable to the Seller.

                  (h) All Consents of any Person, whether or not a party to this
Agreement, which are necessary for the Buyer and each of the Subsidiaries to
perform its obligations contemplated by this Agreement.

                  (i) Payment of all sales, transfer and documentary taxes
payable in connection with the sale, transfer and deliveries under the Operative
Documents.

                  (j) To the Seller, the Non-Competition Agreement in the form
attached hereto as EXHIBIT E.

                  (k) To the Seller, the Investor Rights Agreement in the form
attached hereto as EXHIBIT F.

                  (l) Such other agreements, instruments and documents as the
Seller reasonably deems necessary to effect the transactions contemplated
hereby.

         2.7. CONSENTS AND WAIVERS

                                       14
<PAGE>

                  (a) SECTION 2.7 of the Disclosure Schedule identifies each
lease, contract or other agreement or any license, permit or approval which
requires the consent or waiver of any party to be assigned, transferred,
subleased or sublicensed. To the extent any lease, contract or other agreement
or any license, permit or approval is not capable of being assigned,
transferred, subleased or sublicensed without the consent or waiver of the
issuer thereof or a party thereto (other than the Seller) or any third party
(including a government or governmental unit), or if such assignment, transfer,
sublease or sublicense or attempt to assign, transfer, sublease or sublicense
would constitute a breach thereof or a violation of any law, decree, order,
regulation or other governmental edict, this Agreement shall not constitute an
assignment, transfer, sublease or sublicense thereof, or an attempted
assignment, transfer, sublease or sublicense thereof.

                  (b) The Seller agrees to use reasonable efforts to obtain the
consents and waivers referred to in this Section 2.7 hereof and to obtain any
other consents and waivers necessary to assign, convey, settle, deliver and
transfer the Acquired Assets.

                  (c) If any consent or waiver referred to in this Section 2.7
hereof is not obtained prior to Closing, then until such consent is obtained,
the Seller shall (i) use commercially reasonable efforts to provide Buyer the
benefits of the relevant permit, license, approval, lease, contract or other
agreement, (ii) cooperate in any arrangement, reasonable and lawful as to both
the Buyer and the Seller, designed to afford to the Buyer the benefits of the
Acquired Assets, and (iii) continue to use reasonable efforts to attempt to
obtain such consent or waiver for a period of up to ninety (90) days following
the Closing.

         2.8. PAYMENT OF TRANSFER TAXES. Buyer shall pay all sales, transfer or
use taxes and assessments arising from the sale or transfer of the Acquired
Assets.

         2.9. ALLOCATION. Within thirty (30) days following the date hereof, the
Buyer and Seller shall mutually agree upon a methodology for preparing an
allocation of the Purchase Price pursuant to Section 1060 of the Code (the
"Allocation"). The Seller and Buyer agree to negotiate in good faith to
determine such methodology. Prior to Closing, the Buyer and Seller shall jointly
determine the Allocation using such methodology. The Seller and Buyer agree to
(i) be bound by the Allocation, (ii) act in accordance with the Allocation in
the preparation of financial statements and filing of all tax returns under the
Code and in the course of any tax audit, tax review or tax litigation relating
thereto, and (iii) take no position, and cause their Affiliates to take no
position, inconsistent with the Allocation for federal, state or provincial
income tax purposes.

                                   ARTICLE 3.

                         REPRESENTATIONS AND WARRANTIES
                                  OF THE SELLER

         As a material inducement to the Buyer to enter into the Operative
Documents and to consummate the transactions contemplated thereunder, the Seller
represents and warrants to the Buyer that the statements contained in this
Article 3 (and in the applicable Sections of the Disclosure Schedule) are true
and correct as of the date of this Agreement and will be true and correct in all
material respects at and as of the Closing Date. The representations in this
Article 3

                                       15

<PAGE>

shall not apply to the Fiber Assets and Seller disclaims any representation or
warranty with respect to the Fiber Assets, whether express or implied, including
any representations or warranties as to merchantability or fitness for a
particular purpose.

         3.1. ORGANIZATION AND CAPITALIZATION OF THE SELLER . Seller is a
corporation duly organized, validly existing, and in good standing under the
laws of the State of Delaware. Seller is duly qualified or licensed to do
business as a foreign corporation and is in good standing under the laws of each
state in which any of the Markets are located. Seller has all requisite
corporate power and authority to own, lease and operate the properties and
assets that it purports to own or use, to carry on the business as now conducted
(including the performance of all its obligations under the Assumed Contracts).

         3.2. AUTHORIZATION OF TRANSACTION. The Seller has all requisite
corporate power and authority to execute and deliver the Operative Documents and
to perform its obligations thereunder. The execution, delivery and performance
of the Operative Documents by the Seller and the performance by the Seller of
the transactions contemplated thereby has been duly authorized and approved by
all necessary corporate proceedings on the part of the Seller. Without limiting
the generality of the foregoing, the Board of Directors of Seller have duly
authorized the execution, delivery and performance of this Agreement and the
other Operative Documents. This Agreement has been duly executed and delivered
by the Seller. Each of the Operative Documents to which the Seller is a party
constitutes a valid and binding agreement of the Seller, enforceable against the
Seller in accordance with its terms subject to applicable bankruptcy, insolvency
and other laws affecting creditors' rights generally, public policy and
equitable principles generally.

         3.3. NONCONTRAVENTION. The execution and delivery of the Operative
Documents by Seller, and the consummation of the transactions contemplated
thereby, (a) will not violate any provision of the Certificate of Incorporation
or the Bylaws of the Seller, (b) will not violate any statute, rule, regulation,
order or decree of any Governmental Body by which the Seller, or the Acquired
Assets, are bound or give any Governmental Body the right to revoke, withdraw,
suspend, cancel, terminate or modify any material Governmental Authorization
that is held by it or that otherwise relates to the Acquired Assets, and (c)
will not result in a material violation or breach of, or constitute a default
under, any license, franchise, permit, indenture, agreement or other instrument
to which the Seller is a party, or by which the Seller, or any of the Acquired
Assets are bound, excluding from the foregoing clauses (b) and (c) violations,
breaches or defaults which, either individually or in the aggregate, (i) would
not prevent the Seller from performing its obligations under the Operative
Documents or the consummation of the transactions contemplated thereby, and (ii)
would not adversely affect the Buyer's post-Closing ownership, operation and
maintenance of the Acquired Assets. Except as set forth in SECTION 3.3 of the
Disclosure Schedule, the Seller is not required to give any notice to, make any
filing or registration with, or obtain any Consent from any Person in connection
with the execution and delivery of this Agreement or any of the other Operative
Documents, or the consummation or performance of the transactions contemplated
hereby and thereby or in order for the Operative Documents to be effective or to
preserve any material right or benefit of the business.

                                       16

<PAGE>

         3.4. FINANCIAL STATEMENTS. Seller has delivered to Buyer the Gross
Profit and Loss Statement. The Gross Profit and Loss Statement accurately
reflects lines, revenue and network costs of the Seller with respect to the
Acquired Assets for the period indicated.

         3.5. INTENTIONALLY OMITTED

         3.6. LEGAL COMPLIANCE(a) Except as set forth in SECTION 3.6(a) of the
Disclosure Schedule, since January 1, 2001, the Seller has complied in all
material respects with each Legal Requirement that is or was applicable to it or
the ownership or use of any of the Acquired Assets.

                  (b) To the Knowledge of the Seller, since January 1, 2001, no
event has occurred or circumstance exists that (with or without notice or lapse
of time or both) (i) may constitute or result in a material violation by the
Seller of, or a material failure on the part of the Seller to comply with, any
Legal Requirement, or (ii) may give rise to any obligation on the part of the
Seller to undertake, or to bear all or any portion of the cost of, any material
remedial action of any nature. No Proceeding, charge, complaint, claim, demand
or notice has been filed or commenced against the Seller alleging any failure so
to comply.

                  (c) The Governmental Authorizations listed in SECTION 3.6(c)
of the Disclosure Schedule constitute all of the material Governmental
Authorizations necessary to permit the Seller to lawfully own and use the
Acquired Assets in the manner in which it currently owns and uses the Acquired
Assets. All material documentation and record-keeping which is required under
applicable Legal Requirements has been performed in all material respects in a
timely manner.

         3.7. TAX MATTERS. The Seller has filed, caused to be filed or will file
on a timely basis all Tax Returns that are, were or will be required to be filed
by the Seller with respect to the Acquired Assets, either separately or as a
member of a group of corporations, as of the Closing Date, pursuant to
applicable Legal Requirements. The Seller has paid, or made provision for the
payment of, all Taxes that are applicable to Seller with respect to the Acquired
Assets that have become due pursuant to those Tax Returns or otherwise, or
pursuant to any assessment received by the Seller, except such Taxes, if any, as
are listed on SECTION 3.7(a) of the Disclosure Schedule and are being contested
in good faith. All Taxes due and payable by the Seller with respect to the
Acquired Assets (whether or not shown on any Tax Return) with respect to all
periods (or partial periods) through the Closing Date have been paid or will be
paid by the Seller. Except as set forth at SECTION 3.7(a) of the Disclosure
Schedule, the Seller is not currently the beneficiary of any extension of time
within which to file any Tax Return. The Seller has not waived any statute of
limitations in respect of Taxes or agreed to any extension of time with respect
to a Tax assessment or deficiency.

         3.8. ASSUMED REAL PROPERTY.

                  (a) SECTION 3.8(a) of the Disclosure Schedule contains a
complete and accurate list of each item of real property leased by the Seller in
connection with the Acquired Assets that may be assumed by Buyer in accordance
with the terms of Section 5.6 (the "Assumed Real Property").

                                       17

<PAGE>

                  (b) To Seller's Knowledge, there are no developments affecting
any of the Assumed Real Property pending or Threatened which might materially
interfere with any present use of such Assumed Real Property or the future use
thereof by Buyer or any of the Subsidiaries consistent with such present use.

                  (c) The Seller has made available to the Buyer correct and
complete copies of the leases and subleases, if any, relating to the Assumed
Real Property. Except as set forth in SECTION 3.8(c) of the Disclosure Schedule,
all leases of the Assumed Real Property are valid, binding and enforceable in
accordance with their respective terms. Seller has not received notice of any
default under any such lease which remains uncured and to Seller's Knowledge
there is no default by the landlord under any lease which remains uncured. There
are no known disputes, oral agreements or forbearance programs in effect as to
any such lease or sublease. To the Seller's Knowledge, no condemnation,
environmental, zoning, land-use or other regulatory proceedings or rule making
procedures have been instituted or, to the Seller's Knowledge, are planned to be
instituted, with respect to the Assumed Real Property, which would result in the
Seller or the Buyer being required to vacate such premises or materially alter
or limit the current use of such premises, nor has the Seller received notice of
any Proceedings to impose any new Taxes or materially adverse operating
restrictions upon any of such properties.

         3.9. ACQUIRED ASSETS. Except as set forth in SECTION 3.9 of the
Disclosure Schedule, the Acquired Assets constitute substantially all of the
properties (other than the Assumed Real Property) and assets used in connection
with the operation of the Acquired Assets in the Markets. Except as set forth in
SECTION 3.9 of the Disclosure Schedule, and exclusive of the Excluded Assets,
none of the material tangible personal property included in the Acquired Assets
is subject to any personal property or equipment leases. Each such tangible
asset, to the Seller's Knowledge, has been maintained in accordance with normal
industry practice, is in good operating condition and repair (subject to normal
wear and tear) and is suitable for the purposes for which it presently is used
and presently is proposed to be used. As of the Closing Date, and except as set
forth in SECTION 3.8(a) of the Disclosure Schedule, good and valid title to, and
valid leasehold interests in, the Acquired Assets shall vest in the Buyer, free
and clear of all Encumbrances (other than Permitted Liens) or restrictions on
transfer.

         3.10. INTELLECTUAL PROPERTY

                  (a) The Seller owns or has the right to use pursuant to
license, sublicense, agreement or permission all Software. All Software included
in the Acquired Assets owned or used by the Seller immediately prior to the
Closing hereunder will be owned or available for use by the Buyer on identical
terms and conditions immediately after the Closing.

                  (b) To the Seller's Knowledge, Seller has not interfered with,
infringed upon, misappropriated or otherwise come into conflict with any
intellectual property rights of third parties, and none of the directors,
managers, and officers (and employees with responsibility for intellectual
property matters) of the Seller has ever received any charge, complaint, claim,
demand or notice alleging any such interference, infringement, misappropriation
or violation (including any claim that the Seller must license or refrain from
using any intellectual property rights of any third party). To the Seller's
Knowledge, no third party has interfered with,

                                       18

<PAGE>

infringed upon, misappropriated or otherwise come into conflict with any
intellectual property rights of the Seller.

         3.11. ASSUMED CONTRACTS. The Seller has delivered to the Buyer true,
complete and correct copies of each written Assumed Contract and a description
of each oral Assumed Contract. With respect to each such Assumed Contract: (a)
the Assumed Contract is legal, valid, binding, enforceable and in full force and
effect; (b) the Assumed Contract will continue to be legal, valid, binding,
enforceable and in full force and effect on identical terms following the
consummation of the transactions contemplated by the Operative Documents
(including the assignments and assumptions referred to in Article 2 above,
assuming consent); (c) to the Seller's Knowledge, no party is in breach or
default, and, to the Seller's Knowledge, no event has occurred which with notice
or lapse of time would constitute a breach or default, or permit termination,
modification or acceleration, under the Assumed Contract; and (d) no party has
repudiated any provision of the Assumed Contract. The Seller has complied in all
material respects with all of the provisions of each such Assumed Contract.
Except as set forth on SECTION 3.11 of the Disclosure Schedule, all such Assumed
Contracts can be freely assigned to the Buyer without penalty or liquidated
damages and the assignment of each such Assumed Contract shall be valid and
binding on the Seller and the third party thereto. The writings evidencing all
such Assumed Contracts constitute the substantive agreement in all material
respects between the parties as to the subject matter thereof, including, but
not limited to, terms of price and quantity.

         3.12. ACQUIRED ACCOUNTS RECEIVABLE. All Acquired Accounts Receivable
are reflected properly on the Seller's books and records, are valid receivables,
and are not subject to setoffs or counterclaims, are, to Seller's Knowledge,
collectible, subject only to the reserve for bad debts reflected in the Seller's
books and records as adjusted for the passage of time through the Closing Date
in accordance with the past custom and practice of the Seller.

         3.13. LITIGATION. SECTION 3.13 of the Disclosure Schedule sets forth
each instance in which the Seller, in connection with the Acquired Assets: (a)
is subject to any outstanding injunction, judgment, order, decree, ruling or
charge; or (b) is a party or, to the Knowledge of the Seller, is Threatened to
be made a party to any Proceeding of, in, or before any court or quasi-judicial
or administrative agency of any federal, state, local or foreign jurisdiction or
before any arbitrator. None of the Proceedings set forth in SECTION 3.13 of the
Disclosure Schedule, if decided adversely to the Seller, could result in any
material adverse effect on the Acquired Assets. The Seller has no Basis to
believe that any such Proceeding may be brought or threatened against the
Acquired Assets.

         3.14. EMPLOYEES

                  (a) Except as disclosed in SECTION 3.14(a) of the Disclosure
Schedule, to the Knowledge of the Seller, no executive, key employee or group of
employees of Seller in the Markets has any plans to terminate employment with
the Seller, and the Seller has no Knowledge of any reason why any of the
Seller's employees would not agree to continue his or her employment following
the Closing provided that he or she is offered employment by the Buyer on terms
no less favorable to such employee than those terms currently applicable to him
or her. The Seller is not a party to or bound by, nor are any of its employees
otherwise subject to, any

                                       19

<PAGE>

collective bargaining agreement, nor has any Seller experienced any strikes,
grievances, claims of unfair labor practices or other collective bargaining
disputes. The Seller has no Knowledge of any organizational effort presently
being made or threatened or at any time during the past three years made or
threatened by or on behalf of any labor union or any representatives thereof
with respect to employees of the Seller.

                  (b) A copy of the Seller's most recent payroll for employees
in the Markets is attached at SECTION 3.14(b) of the Disclosure Schedule. From
and after the Closing Date, the Seller shall remain exclusively liable for the
payment to its employees of all salaries, wages and benefits, including
severance benefits, under claims incurred but not paid as of and through the
Closing Date. The Seller shall remain responsible for and shall retain any and
all statutory and contractual Liabilities relating in any manner to the Seller's
employees, former employees, and their dependents and beneficiaries, arising in
connection with events or circumstances incurred or existing on or prior to the
Closing Date including, without limitation, the termination of employment of any
of the Seller's employees.

         3.15. EMPLOYEE BENEFITS.

                  (a) SECTION 3.15(a) of the Disclosure Schedule sets forth a
complete list of each Employee Benefit Plan that the Seller maintains or to
which the Seller contributes ("Seller Plans"). The Seller has made available to
the Buyer correct and complete copies of the plan documents and summary plan
descriptions, the most recent determination letters received from the Internal
Revenue Service and all related trust agreements, insurance contracts and other
funding agreements which implement or relate to each such Employee Benefit Plan.

                  (b) The Seller does not contribute to, has never contributed
to, or has never been required to contribute to any Multiemployer Plan and has
no Liability (including withdrawal Liability) under any Multiemployer Plan.

         3.16. ENVIRONMENT, HEALTH AND SAFETY. Except as set forth in SECTION
3.16 of the Disclosure Schedule:

                  (a) To the Knowledge of the Seller, the Seller, the Assumed
Real Property and the Acquired Assets have in the past complied, and are in
compliance currently in all material respects, with all Environmental, Health
and Safety Laws applicable to the Acquired Assets.

                  (b) To the Knowledge of the Seller, except in material
compliance with applicable Environmental, Health and Safety Laws, the Seller has
not (i) generated, handled, manufactured, refined, transported, treated, stored,
transferred, produced, or processed any Hazardous Material or any solid waste at
any of the Assumed Real Properties or any of the Acquired Assets, except in
compliance with all applicable Environmental, Health and Safety Laws, or (ii)
disposed of or released any Hazardous Material or any solid waste at any of the
Facilities, any of the Acquired Assets, or any other property owned, leased,
controlled, operated, or occupied at any time by the Seller.

                  (c) To the Knowledge of the Seller, there is not, and has not
been, any release, threatened release, or presence of any Hazardous Material on,
in, under, adjacent to, or affecting

                                       20

<PAGE>

any of the Assumed Real Property or any of the Acquired Assets which may be
attributable to the actions of the Seller, except in material compliance with
applicable Environmental, Health and Safety Laws. To the Knowledge of the
Seller, neither the Assumed Real Property nor any of the Acquired Assets have
been placed, or proposed for listing, on the National Priorities List under the
Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA")
or the CERCLA Information System List or on any state, national or provincial
list of contaminated properties.

                  (d) To the Knowledge of the Seller, there are no aboveground
or underground storage tank, asbestos or asbestos-containing material in any
form or condition, material or equipment containing polychlorinated biphenyls,
landfill, surface impoundment, or disposal area present at any of the Assumed
Real Properties or any of the Acquired Assets.

                  (e) Except as set forth in SECTION 3.16(e) of the Disclosure
Schedule, Seller has not: (A) entered into or been subject to any consent
decree, compliance order, or administrative order with respect to any of the
Assumed Real Properties or any of the Acquired Assets regarding its compliance
with Environmental, Health and Safety Laws; (B) received written notice under
the citizen suit provision of any Environmental, Health and Safety Law in
connection with any of the Assumed Real Properties or any of the Acquired
Assets; (C) received any written request for information, notice, demand letter,
administrative inquiry, or formal or informal complaint or claim relating to
Environmental, Health and Safety Laws with respect to any of the Assumed Real
Properties or any of the Acquired Assets; (D) received any written notice,
report, or other information regarding any actual or alleged violation of any
Environmental, Health and Safety Law, or any liabilities or potential
liabilities including any investigatory, remedial, or corrective obligations,
arising under any Environmental, Health and Safety Law with respect to any of
the Assumed Real Properties or any of the Acquired Assets; or (E) been subject
to or threatened with any written enforcement action with respect to any of the
Assumed Real Properties or any of the Acquired Assets.

                  (f) Neither this Agreement nor the consummation of the
transaction that is the subject of this Agreement will result in any obligation
to conduct a site investigation or cleanup, or to notify or obtain consent from
any Governmental Body or third party, pursuant to any Environmental, Health and
Safety Law or any obligation of the Seller.

                  (g) To the Knowledge of the Seller, the Seller has provided to
Buyer access to all material documents, records, or other relevant information
generated by or on behalf of the Seller concerning the Seller's compliance with
and status pursuant to Environmental, Health and Safety Laws applicable to any
of the Assumed Real Properties or any of the Acquired Assets, including, without
limitation, (i) environmental audits, environmental risk assessments, or site
assessments (including such assessments of any property adjacent to or in the
vicinity of any of the Assumed Real Properties or any of the Acquired Assets),
(ii) documentation regarding the release, threatened release, or disposal of
Hazardous Materials on any of the Assumed Real Properties or the Acquired
Assets, (iii) soil, water, or air monitoring results, (iv) applicable studies
relating to worker health and safety, (v) spill control plans, and (vi) reports
from and correspondence with Governmental Bodies.

         3.17. CUSTOMERS

                                       21

<PAGE>

         To the Knowledge of the Seller, the relationships of the Seller with
the Clients are generally good commercial working relationships. Except as set
forth in SECTION 3.17 of the Disclosure Schedule, during the six (6) months
prior to the date of this Agreement, no customer of the Seller which accounted
for in excess of $45,000 of the revenues of the Seller during such six (6)
months, or $10,000 of such revenues during any one month within such period, has
canceled or otherwise terminated its relationship with the Seller.

         3.18. BROKERS' FEES. Except as set forth in SECTION 3.18 of the
Disclosure Schedule, the Seller has no Liability or obligation to pay any fees
or commissions to any broker, finder or agent with respect to the transactions
contemplated by the Operative Documents, and there are no such fees or
commissions incurred by or on behalf of the Seller for which the Buyer could
become liable or obligated.

         3.19. DISCLOSURE. None of the representations and warranties of the
Seller contained in the Operative Documents contains any untrue statement of a
material fact or, to the Seller's Knowledge, omits to state a material fact
necessary in order to make the statements contained herein and therein complete
and not misleading as of the dates thereof in light of the circumstances in
which they were made.

         3.20. INVESTMENT INTENT.

                  (a) The Seller is acquiring the Buyer's Common Stock for its
own account, for investment purposes only, and not with a view to, or in
connection with, any resale or other distribution of such Common Stock.

                  (b) The Seller acknowledges that the shares of Buyer's Common
Stock have not been registered under the Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state by reason of an exemption
or exemptions from registration under the Securities Act and applicable state
securities laws in reliance on the Seller's representations contained herein,
and that Buyer's reliance on such exemptions is predicated on the accuracy and
completeness of the Seller's representations, warranties, acknowledgments and
agreements herein. Accordingly, the Seller acknowledges and agrees that the
Buyer's Common Stock may not be offered, sold, transferred, pledged or otherwise
disposed of by the Seller without an effective registration statement under the
Securities Act and any applicable state securities laws or an opinion of counsel
acceptable to Buyer that the proposed transaction will be exempt from
registration. The Seller acknowledges that, except as provided in the Investor
Rights Agreement, Buyer is not required to register the Buyer's Common Stock
under the Securities Act or any applicable state securities law or to make any
exemption from registration available. The Seller understands that the Buyer's
Common Stock will bear a legend substantially to the effect of the following:

         "The securities represented by this certificate have not been
         registered under the Securities Act of 1933, as amended (the "Act"), or
         the securities laws of any state. The securities may not be offered,
         sold, transferred, pledged or otherwise disposed of without an
         effective registration statement under the Act and any applicable state
         securities laws, or an opinion of counsel reasonably acceptable to
         Choice One Communications Inc. that

                                       22

<PAGE>

         the proposed transaction will be exempt from registration under
         the Act and applicable state securities laws."

and that the Buyer will place a stop order against the transfer of the
certificates representing the Buyer's Common Stock and refuse to effect any
transfers thereof in the absence of satisfaction of the conditions stated in the
foregoing legend.

                  (c) The Seller has such knowledge and experience in financial
and business matters that the Seller is capable of evaluating the merits and
risks of its investment in Buyer and of protecting its own interests in
connection therewith.

                  (d) The Seller has had the opportunity to review the Network
Transition Agreement, Buyer's Form 10-K Annual Report for the year ended
December 31, 2000, Buyer's Form 10-Q Quarterly Report for the quarter ended June
30, 2001, Buyer's Form 8-K Interim Report dated September 5, 2001 and Buyer's
proxy statement with respect to its 2001 annual meeting of the Buyer
(collectively, the "Buyer SEC Reports"). The Seller has had the opportunity to
ask questions of Buyer's management, which questions, if any, were answered to
the Seller's satisfaction and in writing.

                  (e) The Seller acknowledges that an investment in Buyer's
Common Stock involves certain risks, including those risks described in the
Buyer SEC Reports. The Seller is able to bear the economic risk of its
investment in Buyer's Common Stock for an indefinite period of time. The Seller
has not paid or given any commission or other remuneration in connection with
the acquisition of Buyer's Common Stock.

                                   ARTICLE 4.

                   REPRESENTATIONS AND WARRANTIES OF THE BUYER

         As a material inducement to the Seller to enter into this Agreement and
to consummate the transactions contemplated hereunder and thereunder, the Buyer
represents and warrants to the Seller that each of the statements contained in
this Article 4 (and in the applicable Sections of the Disclosure Schedule) is
true and correct as of the date of this Agreement and will be true and correct
at and as of the Closing.

         4.1. ORGANIZATION. Each of Buyer, Choice One of New York, Choice One of
Pennsylvania, Choice One of New Hampshire, Choice One of Massachusetts, and
Choice One of Maine represents, jointly and severally, that: (a) it is a
corporation duly organized, validly existing, and in good standing under the
laws of the state of its incorporation and has full corporate power and
authority to carry on its business as it is now being conducted; (b) it is duly
qualified or licensed to do business as a foreign corporation and is in good
standing under the laws of each state where the character of its properties or
the nature of its activities make such qualification necessary except where the
failure to be so qualified would not have a material adverse effect; and (c) it
has all requisite corporate power and authority to own, lease and operate the
properties and assets that it purports to own or use, to carry on its business
as now conducted (including the performance of all its obligations after the
Closing under the Assumed Contracts).

                                       23

<PAGE>

         4.2. AUTHORIZATION OF TRANSACTION. Each of Buyer, Choice One of New
York, Choice One of Pennsylvania, Choice One of New Hampshire, Choice One of
Massachusetts, and Choice One of Maine represents, jointly and severally, that:
(a) it has all requisite corporate power and authority to execute and deliver
the Operative Documents and to perform its obligations thereunder; (b) the
execution, delivery and performance by it of the Operative Documents to which it
is a party, and the performance by it of the transactions contemplated thereby
have been duly authorized and approved by all necessary corporate proceedings;
(c) its Board of Directors has duly authorized the execution, delivery and
performance of this Agreement and the other Operative Documents to which it is a
party; (d) this Agreement has been duly executed and delivered by it; and (e)
each of the Operative Documents to which it is a party constitutes a valid and
binding agreement of it, enforceable against it in accordance with its terms
subject to applicable bankruptcy, insolvency and other laws affecting creditors'
rights generally, public policy and equitable principles generally.

         4.3. NONCONTRAVENTION. Each of Buyer, Choice One of New York, Choice
One of Pennsylvania, Choice One of New Hampshire, Choice One of Massachusetts,
and Choice One of Maine represents, jointly and severally, that: (a) the
execution and delivery by it of the Operative Documents to which it is a party,
and the consummation by it of the transactions contemplated thereby, (i) will
not violate any provision of its Certificate of Incorporation or Bylaws, (ii)
will not violate any statute, rule, regulation, order or decree of any
Governmental Body by which the it or any of its properties or assets is bound,
and (iii) will not result in a violation or breach of, or constitute a default
under, any license, franchise, permit, indenture, agreement or other instrument
to which the it is a party, or by which it or any of its properties or assets is
bound, excluding from the foregoing clauses (ii) and (iii) violations, breaches
or defaults which, either individually or in the aggregate, would not prevent it
from performing its obligations under the Operative Documents to which it is a
party or the consummation of the transactions contemplated thereby; and (b)
except as set forth in SECTION 4.3 of the Disclosure Schedule, the it does not
need to give any notice to, make any filing or registration with, or obtain any
Consent from, any Person in connection with the execution and delivery of this
Agreement or the consummation or performance of the transactions contemplated
hereby and by the Operative Documents to which it is a party.

         4.4. THE BUYER SHARES. The shares of Buyer Common Stock issued as part
of the Purchase Price or the contingent purchase price, when issued in
accordance with the terms hereof, will be duly authorized, validly issued, fully
paid and nonassessable and not subject to preemptive rights or any other
Encumbrance.

         4.5. BUYER CAPITALIZATION. The authorized capital stock of Buyer
consists of 150,000,000 shares of Buyer Common Stock and 5,000,000 shares of
Series A Senior Cumulative Preferred Stock. As of the close of business on
November 1, 2001, there were outstanding 37,805,883 shares of Buyer Common
Stock, 200,000 shares of Series A Senior Cumulative Preferred Stock and no other
shares of capital stock or other voting securities of Buyer were outstanding.
SECTION 4.5 of the Disclosure Schedule is a correct and complete list of the
outstanding options, warrants or other rights to acquire Buyer Common Stock from
Buyer as of June 30, 2001.

         4.6. COMMISSION FILINGS.

                                       24

<PAGE>

                  (a) Buyer has filed, or will file at or prior to the time due,
all forms, reports and documents required to be filed by it with the Securities
and Exchange Commission since December 31, 2000. Buyer has made available to
Seller (i) its annual reports on Form 10-K for its fiscal year ended December
31, 2000, (ii) its quarterly reports on Form 10-Q for its fiscal quarters ended
from December 31, 2000 to June 30, 2001, (iii) its proxy or information
statements relating to meetings, of, or actions taken without a meeting by, the
stockholders of Buyer held since December 31, 2000, and (iv) all of its other
reports, statements, schedules and registration statements filed with the
Commission since December 31, 2000 (the documents referred to in this Section
4.6(a) being referred to collectively as the "Buyer Commission Documents").

                  (b) As of its filing date, each Buyer Commission Document
complied as to form in all material respects with the applicable requirements of
the Securities Exchange Act of 1934, as amended, and the Securities Act of 1933,
as amended.

                  (c) As of its filing date, each Buyer Commission Document
filed pursuant to the Securities Exchange Act of 1934, as amended, did not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading which has not been
corrected by a subsequent Buyer Commission Document.

         4.7. MATERIAL AGREEMENTS. Each of Buyer, Choice One of New York, Choice
One of Pennsylvania, Choice One of New Hampshire, Choice One of Massachusetts,
and Choice One of Maine represents, jointly and severally, that it is not in
default under any of the material agreements to which it is a party (including,
without limitation, loan documents), and, to Buyer's knowledge, there has not
occurred any event which (whether with or without notice, lapse of time or the
happening or occurrence of any other sort) could constitute a default.

         4.8. PROCEEDINGS. Each of Buyer, Choice One of New York, Choice One of
Pennsylvania, Choice One of New Hampshire, Choice One of Massachusetts, and
Choice One of Maine represents, jointly and severally, that there is no
Proceeding pending or, to its Knowledge, Threatened against it, that would have
a material adverse effect on it or on its ability to perform its obligations
under the Operative Documents to which it is a party.

         4.9. BROKERS OR FINDERS. Each of Buyer, Choice One of New York, Choice
One of Pennsylvania, Choice One of New Hampshire, Choice One of Massachusetts,
and Choice One of Maine represents, jointly and severally, that no agent, broker
or Person acting on its behalf is, or will be, entitled to any commission or
broker's or finder's fee from any of the parties or their Affiliates in
connection with any of the transactions contemplated by the Operative Documents
to which it is a party.

         4.10. TRANSACTION AGREEMENT. Buyer is a party to a Transaction
Agreement, dated as of July 8, 1998, as amended, among Buyer and certain of its
institutional shareholders and management shareholders (the "Transaction
Agreement"). The Transaction Agreement requires the parties thereto to vote
their beneficially owned shares of common stock of the Buyer for certain
Directors of the Board of Directors of Buyer. The parties to this Transaction
Agreement

                                       25

<PAGE>

have voting power over at least 55% of the common stock of the Buyer issued and
outstanding as of November 1, 2001.

         4.11. EARNINGS RELEASE. The Buyer's earnings release showing Buyer's
financial results for the quarter ended September 30, 2001 (the "Earnings
Release") is attached hereto as Schedule 4.11 of the Disclosure Schedule. The
Earnings Release fairly presents in all material respects the financial position
and the results of operations and cash flows of Buyer as of and for the quarter
ended on such date and is otherwise true, correct and complete in all material
respects.

                                   ARTICLE 5.

                              PRE-CLOSING COVENANTS

         The parties agree as follows with respect to the period between the
execution of this Agreement and the Closing:

         5.1. GENERAL. Each of the parties will use its reasonable best efforts
to take all action and to do all things necessary, proper or advisable in order
to consummate and make effective the transactions contemplated by the Operative
Documents (including satisfaction, but not waiver, of the Closing conditions set
forth in Article 7 hereof).

         5.2. CONDUCT OF THE BUSINESS. The Acquired Assets will only be operated
in accordance with the Ordinary Course of Business, and there shall be no
material adverse change in the condition (financial or otherwise), assets,
liabilities, obligations, operations or results of operations of the Acquired
Assets. Without limiting the generality of the foregoing, Seller shall not take,
or suffer to exist, any of the following actions with respect to the Acquired
Assets, without first obtaining the written consent of the Buyer, which shall
not be unreasonably withheld:

                  (a) sell, lease, transfer, license, assign or otherwise
dispose of any of its assets, tangible or intangible, other than inventory for a
fair consideration or other assets in the Ordinary Course of Business;

                  (b) enter into any agreement, contract, lease or license (or
series of related agreements, contracts, leases and licenses) either involving
more than $50,000 or outside the Ordinary Course of Business;

                  (c) accelerate, terminate, modify or cancel any agreement,
contract, lease or license (or series of related agreements, contracts, leases
and licenses) involving more than $50,000 to which it is a party or by which it
is bound;

                  (d) suffer the imposition of any Encumbrance upon any of the
Acquired Assets other than Permitted Liens;

                  (e) make any capital expenditure (or series of related capital
expenditures) either involving more than $50,000 in the aggregate or outside the
Ordinary Course of Business;

                                       26

<PAGE>

                  (f) delay or postpone the payment of accounts payable or other
Liabilities outside the Ordinary Course of Business;

                  (g) grant any extension of credit in the sale of products,
collection of receivables or otherwise, other than in the Ordinary Course of
Business;

                  (h) cancel, compromise, waive or release any right or claim
(or series of related rights and claims) involving more than $50,000;

                  (i) experience any damage, destruction or loss (whether or not
covered by insurance) to its property, reasonable wear and tear excepted;

                  (j) engage in any methods of billing and collection, purchase,
sale, lease, management, equipment servicing or repair, accounting or operation
that vary from its usual and customary past practice;

                  (k) suffer any other material occurrence, event, incident,
action, failure to act or transaction outside the Ordinary Course of Business or
which has a material adverse effect or is reasonably expected to have a material
adverse effect on the Acquired Assets; or

                  (l) agree in writing or otherwise to any of the foregoing.

Notwithstanding the foregoing, Buyer acknowledges that following the execution
and delivery of this Agreement the Seller will not be operating its business in
accordance with past practice in that it will be winding down its competitive
local exchange carrier business in the Markets and, in connection therewith,
will be terminating the employment of a significant number of its employees,
terminating certain equipment leases, subleasing certain sales offices and
discontinuing sales activities in the Markets. Such activities shall not be
deemed to be a breach of this Section 5.2.

         5.3. NOTICES AND CONSENTS; GOVERNMENTAL AUTHORIZATIONS. The Seller will
give any notices to third parties, and will use its reasonable best efforts to
obtain any required Consents, in connection with the matters referred to in
SECTION 2.7 of the Disclosure Schedule and to effect transfers of the Acquired
Assets, including, without limitation, the Assumed Contracts. Each of the
parties will give any required notices, make any filings, and use its reasonable
best efforts to obtain any Governmental Authorizations, including, without
limitation, as may be required by (i) the Securities Act, the Exchange Act and
any other applicable federal or state securities Laws and (ii) the Federal
Communications Commission and each of the public utility commissions of the
states of Maine, Massachusetts, New Hampshire, New York and Pennsylvania;
provided that Buyer and Seller shall cooperate with each other in connection
with the making of all such filings, including providing copies of all such
documents to the non-filing party and its advisors prior to filing and
discussing all reasonable additions, deletions or changes suggested in
connection therewith. The Buyer and Seller shall furnish to each other all
information reasonably required for any application or other filing to be made
pursuant to the rules and regulations of any applicable Law in connection with
the transactions contemplated by the Operative Documents.

                                       27

<PAGE>

         5.4. DETERMINATION OF FIBER ASSETS. On or before November 20, 2001, the
Buyer shall provide the Seller with a written schedule of the Fiber Assets in
Erie, Pennsylvania owned by Seller that Buyer desires to acquire at the Closing;
provided, however, that the transfer of any Fiber Assets shall not include any
electronics related to such Fiber Assets. Such written schedule shall be
incorporated into the Disclosure Schedule as SECTION 5.4.

         5.5. TRANSFER OF FIBER ASSETS. Seller shall use its reasonable efforts
to transfer to Buyer at Closing the Fiber Assets located in Erie, Pennsylvania
and identified in SECTION 5.4 of the Disclosure Schedule; provided that the
transfer of any Fiber Assets shall not include any electronics related to such
Fiber Assets.

         5.6. ASSUMED LEASES. For a period of ninety (90) days from the date of
this Agreement, the Seller shall grant the Buyer an exclusive option to assume
or sublease any of the leases relating to the Assumed Real Property described in
SECTION 3.8(a) of the Disclosure Schedule. On or before the termination of such
ninety (90)-day period, Buyer shall deliver to Seller a list of all leases
relating to such Assumed Real Property that Buyer will assume and Seller will
assign (each an "Assumed Lease" and collectively, the "Assumed Leases"). In the
event that any Assumed Lease cannot be assigned, but may be subleased, without
the Consent of the other party thereto, then Seller shall sublease such real
property that is the subject of such Assumed Lease to Buyer on the same terms
and conditions as set forth in the Assumed Lease. If such Assumed Lease cannot
be assigned or sublet without the Consent of the other party thereto, then, for
a period of ninety (90) days from the date hereof, Buyer shall have the right to
approach the other party to such real property lease and obtain Consent to the
assignment thereof. Seller shall use good faith reasonable efforts to assist
Buyer in obtaining such consent and shall make all reasonable efforts to assist
Buyer in any negotiations with the landlords under the Assumed Leases. Buyer
shall reimburse Seller in cash for any deposits made by Seller or any of its
affiliates under any and all Assumed Leases.

         5.7. PRESERVATION OF BUSINESS. The Seller will use its commercially
reasonable efforts to keep the Acquired Assets substantially intact, including
the Seller's present operations, physical facilities, goodwill, working
conditions and relationships with lessors, licensors, suppliers, customers and
employees.

         5.8. FULL ACCESS. Until the earlier of termination of this Agreement or
Closing pursuant to the terms hereof, the Seller will permit representatives of
the Buyer to have full access during normal business hours and upon reasonable
notice, and in a manner so as not to interfere with the normal business
operations of the Seller, to all premises, properties, personnel, books, records
(including Tax records), contracts and documents of or pertaining to the
Acquired Assets.

         5.9. NOTICE OF DEVELOPMENTS. Each party hereto will give prompt written
notice to the other party of any material adverse development causing a breach
of any of its own representations and warranties in Article 3 and Article 4, as
the case may be. No disclosure by any party hereto pursuant to this Section 5.9,
however, shall be deemed to amend or supplement the Disclosure Schedule or to
prevent or cure any misrepresentation, breach of warranty or breach of covenant.

                                       28

<PAGE>

         5.10. EXCLUSIVITY. Until termination of this Agreement or Closing
pursuant to the terms hereof, Seller will not, and will cause its Affiliates,
and their respective attorneys, accountants, consultants, advisors and lenders
not to: (a) solicit, initiate or encourage the submission of any proposal or
offer from any Person relating to the acquisition or disposition of any portion
of the Acquired Assets; or (b) engage or participate in any discussions or
negotiations regarding, furnish any information with respect to, assist or
participate in, or facilitate in any other manner any effort or attempt by any
Person to do or seek to do any of the foregoing. The Seller will notify the
Buyer immediately if any Person makes any proposal, offer, inquiry or contact
with respect to any of the foregoing.

         5.11. REPRESENTATION ON BUYER'S BOARD OF DIRECTORS. Buyer agrees to
cause its Transaction Agreement, dated as of July 8, 1998, as amended, among
Buyer and certain of its institutional shareholders and management shareholders,
to be amended pursuant to a form of amendment that is reasonably satisfactory to
the Seller (the "Transaction Agreement Amendment") to provide that the parties
to such Transaction Agreement Amendment will vote their shares of Buyer which
are subject to the terms thereof in favor of the election of the Chief Executive
Officer of the sole shareholder of Seller (or other designee of the Seller
approved by Buyer's Board of Directors, which approval shall not be unreasonably
withheld) to the Board of Directors of Buyer so long as the Seller owns at least
2,500,000 shares of Buyer Common Stock (as adjusted for stock splits, stock
combinations, stock dividends or similar transactions).

         5.12. INTERIM OPERATIONS. Until termination of this Agreement or
Closing pursuant to the terms hereof, Buyer will: (a) not harm or impair the
migration of Clients; and/or (b) operate its business in the ordinary course
consistent with past practice.

         5.13. NETLEVER AND WEB HOSTING CUSTOMERS. Not later than thirty (30)
days from the date hereof, the Buyer may provide the Seller with a written
schedule of the NetLever and Web hosting customers of Seller that Buyer desires
to assume at the Closing, if any. Such written schedule shall be incorporated
into the Disclosure Schedule as SECTION 5.13. Buyer and Seller shall cooperate
fully towards the efficient and timely migration of such customers.

         5.14. CLOSING DELIVERIES. The Seller shall cause its subsidiary,
FairPoint Solutions Capital LLC, a limited liability company organized under the
laws of North Carolina, to issue all bills of sale, general assignments and all
other documents necessary to effectuate the transfer and conveyance of the
Acquired Assets to Buyer on the Closing.

                                   ARTICLE 6.

                       COVENANTS WHICH SURVIVE THE CLOSING

         6.1. CONFIDENTIALITY COVENANT. Each of the parties hereto shall, and
shall cause its agents, representatives, officers, directors and employees to,
keep all non-public information concerning the parties disclosed to or obtained
in connection with the proposed transactions, confidential except as may be
required by law or by any listing agreement with any national securities
exchange or quotation system. Except as set forth in Section 10.1 hereof, the
terms of the Confidentiality Agreement between the parties dated September 21,
2001 shall survive the execution of this agreement.

                                       29

<PAGE>

         6.2. FURTHER ASSURANCES. Each of the parties hereto, upon the request
from time to time of the other party hereto and without further consideration,
will do each and every act and thing as may be reasonably necessary or
reasonably requested to consummate the transactions contemplated hereby
(including, without limitation, the orderly transfer to the Buyer of the
Acquired Assets and assumption by the Buyer of the Assumed Liabilities),
including without limitation: (i) executing, acknowledging and delivering
assurances, assignments and other documents and instruments, furnishing
information and copies of documents, books and records (including without
limitation Tax records); (ii) filing reports, returns, applications, filings and
other documents and instruments with governmental authorities; and (iii)
cooperating with each other party in exercising any right or pursuing any claim,
whether by litigation or otherwise, other than rights and claims running against
the party from whom or which such cooperation is requested. This Section 6.2
shall survive the Closing for an unlimited period of time.

         6.3. DISCLOSURE OF BREACH OR FUTILITY. If, prior to Closing, any party
acquires Knowledge of: (a) a material misrepresentation or material breach by
any other party; or (b) an event, occurrence or circumstance making satisfaction
of a condition in Section 7.1 or 7.2 hereof unlikely, the party acquiring such
Knowledge shall give prompt written notice thereof to each other party in
sufficient detail to permit a reasonable analysis thereof. Any due diligence
undertaken by the Buyer hereunder shall not diminish the Buyer's right to rely
upon the representations, warranties and agreements of the Seller in this
Agreement.

         6.4. NO EMPLOYEE LIABILITY.

                  (a) The Buyer shall not be required to offer employment to
employees of Seller and shall have no liability for severance pay, vacation,
holiday pay, sick leave or any other liability with respect to the employees of
the Seller.

                  (b) In the event Buyer agrees to employ any employees of the
Seller, the Seller's vested and accrued employee vacation for such employees
through the Closing Date shall be paid by the Seller (or released by the
employee) on or before the Closing Date (with the Seller providing evidence
thereof satisfactory to the Buyer). For purposes of the COBRA health
continuation of coverage provisions (hereinafter referred to as the "COBRA
Provisions") contained in Section 4980(B) of the Code and in Sections 601
through 608 of ERISA, such employees shall be considered to have undergone a
termination of employment with the Seller. It is the understanding and intention
of the Seller and the Buyer that no group health plan maintained by the Buyer
shall constitute a successor plan to the Seller's group health plans and the
Buyer is not a successor employer with respect to the Seller's group health
plans and the Buyer is not a predecessor employer with respect to the Seller's
group health plans, within the meaning of the COBRA Provisions. Seller shall be
responsible for providing continuation of coverage rights for such employees.
Seller shall indemnify Buyer for any liability incurred by Buyer as a result of
Seller's failure to provide such continuation of coverage right.

         6.5. BULK SALES LAWS. The Buyer hereby waives compliance by the Seller,
in connection with the transactions contemplated hereby, with the provisions of
any applicable bulk sales or bulk transfer law. The Seller agrees to indemnify
and hold the Buyer harmless from any claims relating to the failure to comply
with such laws.

                                       30

<PAGE>

         6.6. COLLECTION OF PAYMENTS; CORRESPONDENCE. Following the Closing
Date, the Seller shall forward to Buyer any payments and/or correspondence
received by Seller that Buyer is entitled to, net of any payments due to Seller
pursuant to the Management Services Agreement, pursuant to this Agreement or
related to an Acquired Asset or Assumed Liability.

         6.7. SALES AND TRANSFER TAXES. Within thirty (30) days after the
Closing, Seller shall provide evidence to Buyer of the payment by Seller of all
sales, transfer and documentary taxes payable in connection with the sale,
transfer and deliveries under the Operative Documents to the appropriate taxing
or other Governmental Bodies or regulatory agencies or authorities.

                                   ARTICLE 7

                        CONDITIONS TO OBLIGATION TO CLOSE

         7.1. CONDITIONS TO OBLIGATION OF THE BUYER. The obligation of the Buyer
to consummate the transactions to be performed by it in connection with the
Closing is subject to satisfaction of the following conditions, unless waived by
Buyer in writing:

                  (a) The representations and warranties set forth in Article 3
above shall be true and correct in all material respects at and as of the
Closing Date as if made on the Closing Date, except for representations and
warranties which speak as of a specific date or time other then the Closing Date
which need only be true and correct in all material respects as of such date or
time.

                  (b) The Seller shall have performed and complied in all
material respects with all of its covenants and agreements hereunder to be
performed and complied with on or prior to the Closing.

                  (c) The Seller shall have obtained all third party consents
needed to permit the transfer or assignment of the Acquired Assets, including,
without limitation, the Switch Site Lease and the Assumed Contracts.

                  (d) The parties shall have obtained with finality all
Governmental Authorizations necessary or appropriate for the consummation of the
transactions contemplated by the Operative Documents. This condition shall
include without limitation that all consents, waivers, approvals and
authorizations required to be obtained and filings or notices required to be
made, by the Buyer or Seller prior to the consummation of the Transactions
contemplated by the Operative Documents shall have been obtained from and made
by the Federal Communications Commission, and each public utility commission of
the states of Maine, Massachusetts, New Hampshire, New York and Pennsylvania.

                  (e) No adverse change in the Acquired Assets or the Seller's
business shall have occurred since September 30, 2001 and no fact shall have
arisen which has or reasonably could be expected to have an adverse effect on
the Acquired Assets or on the Seller's business, where such adverse change or
adverse effect shall have an equivalent monetary value in excess of $750,000 or
more.

                                       31

<PAGE>

                  (f) No Proceeding shall be pending or Threatened wherein an
unfavorable injunction, judgment, order, decree, ruling or charge would: (i)
prevent consummation of any of the transactions contemplated by this Agreement;
(ii) cause any of the transactions contemplated by this Agreement to be
rescinded following consummation; or (iii) affect adversely the right of the
Buyer to own the Acquired Assets (and no such injunction, judgment, order,
decree, ruling or charge shall be in effect).

                  (g) The Seller shall have removed all Encumbrances in any way
affecting the Acquired Assets, other than Permitted Liens.

                  (h) The Buyer shall have received from the Seller at the
Closing the certificates, agreements, documents and opinions required pursuant
to Section 2.5 hereof.

         7.2. CONDITIONS TO OBLIGATION OF THE SELLER. The obligation of the
Seller to consummate the transactions to be performed by it in connection with
the Closing is subject to satisfaction of the following conditions unless waived
by Seller in writing:

                  (a) The representations and warranties set forth in Article 4
above shall be true and correct in all material respects at and as of the
Closing Date as if made on the Closing Date, except for representations and
warranties which speak as of a specific date or time other than the Closing Date
which need only be true as of such date or time.

                  (b) The Buyer shall have performed and complied in all
material respects with all of its covenants and agreements hereunder required to
be performed and complied with on or prior to the Closing and Buyer shall have
delivered to Seller a certificate to that effect.

                  (c) No Proceeding shall be pending or Threatened wherein an
unfavorable injunction, judgment, order, decree, ruling or charge would: (i)
prevent consummation of any of the transactions contemplated by this Agreement;
or (ii) cause any of the transactions contemplated by this Agreement to be
rescinded following consummation (and no such injunction, judgment, order,
decree, ruling or charge shall be in effect).

                  (d) No adverse change in the business of Buyer shall have
occurred since September 30, 2001 and no fact shall have arisen which has or
reasonably could be expected to have an adverse effect on the Buyer, where such
adverse change or adverse effect shall have an equivalent monetary value of
$750,000 or more.

                  (e) The Seller shall have received from the Buyer at the
Closing the certificates, agreements and documents required by Section 2.6
hereof and the Buyer's Common Stock to be issued and delivered to the Seller
pursuant to this Agreement will have been duly authorized and, when issued in
accordance with this Agreement, will be validly issued, fully paid and
nonassessable and will have been approved for listing subject to official notice
of issuance by The Nasdaq Stock Market's National Market System.

                  (f) The Transaction Agreement dated as of July 8, 1998, as
amended, shall have been amended in accordance with the provisions of Section
5.11 hereof.

                                       32

<PAGE>

                  (g) Seller shall have obtained all consents required for
consummation of the transactions contemplated herein pursuant to the Amended and
Restated Credit Agreement among the Seller, various lending institutions defined
therein, Bank of America, N.A., as Syndication Agent, Bankers Trust Company, as
Documentation Agent, and First Union National Bank, as Administrative Agent
dated as of November 9, 2000.

                                   ARTICLE 8

                                   TERMINATION

         8.1. TERMINATION OF AGREEMENT. The parties may terminate this Agreement
as expressly provided below:

                  (a) The Buyer and the Seller may terminate this Agreement by
mutual written consent at any time prior to the Closing.

                  (b) The Buyer may terminate this Agreement by giving written
notice to the Seller at any time prior to the Closing: (i) in the event the
Seller has breached any representation, warranty or covenant contained in this
Agreement in any material respect, and failed to cure such breach within five
(5) business days of notice thereof; (ii) if the Management Services Agreement
terminates for any reason; or (iii) if the Closing shall not have occurred on or
before March 31, 2002, by reason of the failure of any condition precedent under
Section 7.1 hereof (unless the failure results primarily from the Buyer itself
breaching any representation, warranty or covenant contained in this Agreement).

                  (c) The Seller may terminate this Agreement by giving written
notice to the Buyer at any time prior to the Closing: (i) in the event the Buyer
has breached any representation, warranty or covenant contained in this
Agreement in any material respect, and failed to cure such breach within five
(5) business days of notice thereof; or (ii) if the Closing shall not have
occurred on or before March 31, 2002, by reason of the failure of any condition
precedent under Section 7.2 hereof including, without limitation, payment of the
Purchase Price (unless the failure results primarily from the Seller breaching
any representation, warranty or covenant contained in this Agreement).

         8.2. EFFECT OF TERMINATION. Each party's right of termination under
Section 8.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of a right of termination will not constitute an
election of remedies. If this Agreement is terminated pursuant to Section 8.1,
all further obligations of the parties under this Agreement will terminate
except that the obligations in Section 6.1 (Confidentiality), Section 10.1
(Press Releases) and Section 10.11 (Expenses) will survive; provided, however,
that if this Agreement is terminated by a party because one or more conditions
to the terminating party's obligations under this Agreement is not satisfied as
a result of the other party's failure to comply with its obligations under this
Agreement, the terminating party's right to pursue all legal remedies will
survive such termination unimpaired.

                                       33

<PAGE>

                                    ARTICLE 9

                                 INDEMNIFICATION

         9.1. SURVIVAL OF REPRESENTATIONS. The parties hereto agree that all
representations and warranties made in the Operative Documents shall remain
operative and in full force and effect as follows, regardless of any
investigation or audit made by or on behalf of the relying party or any
Knowledge of the relying party before, at or after the Closing: (a) all
representations and warranties made by any party in or pursuant to this
Agreement shall survive for a period of one (1) year following the Closing,
except that (b) the representations and warranties set forth in Sections 3.2,
3.9 (fourth sentence only) and 4.2 shall survive indefinitely, (c) the
representation and warranty made in the third sentence of Section 3.9 shall not
survive the Closing and (d) the representations and warranties set forth in
Sections 3.7, 3.15 and 3.16 shall survive until the applicable statute of
limitations has expired.

         9.2. INDEMNIFICATION OF THE BUYER. Seller shall indemnify and hold
harmless the Buyer, Choice One of New York, Choice One of Pennsylvania, Choice
One of New Hampshire, Choice One of Massachusetts, Choice One of Maine and their
respective Affiliates and their directors, officers, employees, stockholders,
agents, successors and assigns (the "Buyer Indemnitees") from and against any
and all payments, damages, claims, actions, demands, losses, expenses, costs,
obligations and liabilities, including interest, taxes, fines, penalties and
reasonable attorneys' fees and expenses and any amounts paid in investigation,
defense or settlement of any of the foregoing ("Damages"), which may be asserted
against or sustained or incurred by any Buyer Indemnitee in connection with,
arising out of, or related to or resulting from:

                  (a) any facts or circumstances which constitute a
misrepresentation or breach by Seller of any representation or warranty set
forth in this Agreement;

                  (b) any nonfulfillment or breach of any covenant or agreement
to be performed on the part of Seller under this Agreement or the other
Operative Documents;

                  (c) the enforcement of any rights of Buyer against Seller
under or in connection with this Agreement or any other Operative Document;

                  (d) any Excluded Liabilities, including, without limitation,
any liability under any bulk sales or transfer laws or theory of successor
liability; any claim, action, suit or proceeding arising out of, relating to or
resulting from any transaction, event, condition or occurrence involving the
Seller or the Acquired Assets with respect to any period on or prior to the
Closing Date which does not constitute an Assumed Liability or which, if
successful, would give rise to an Excluded Liability; and any action, suit,
proceeding, investigation or claim by any third-party against or affecting any
Buyer Indemnitee, or the Acquired Assets which, if successful, would give rise
to or evidence an Excluded Liability;

                  (e) any claim, action, suit or proceeding alleging any
violation of any Environmental Laws in respect of any period on or prior to
Closing;

                  (f) any claim, action, suit or proceeding brought by any
employee or former employee of Seller relating to the termination of such
employees at or prior to the Closing or

                                       34

<PAGE>

brought by any Person under the WARN Act or any similar Legal Requirement
relating to acts of Seller or its Affiliates at or prior to the Closing;

                  (g) any Excluded Assets; or

                  (h) any claim, action, suit or proceeding brought by any
Affiliate, member or stockholder of Seller (other than claims properly brought
by a Seller Indemnitee pursuant to this Article 9).

To the full extent permitted by law, the Seller covenants on behalf of itself
and its Affiliates not to sue any of the Buyer Indemnitees regarding any matters
referenced above.

         9.3. INDEMNIFICATION OF THE SELLER. Each of Buyer, Choice One of New
York, Choice One of Pennsylvania, Choice One of New Hampshire, Choice One of
Massachusetts, and Choice One of Maine agrees, jointly and severally, to
indemnify and hold harmless the Seller and its Affiliates and their respective
directors, officers, employees, stockholders, agents, successors and assigns
(the "Seller Indemnitees") from and against any and all Damages, which may be
asserted against or sustained or incurred by the Seller Indemnitees in
connection with, arising out of or related to or resulting from:

                  (a) any facts or circumstances which constitute a
misrepresentation or breach by Buyer or any of the Subsidiaries of any
representation or warranty set forth in this Agreement;

                  (b) any nonfulfillment or breach of any covenant or agreement
to be performed on the part of Buyer or any of the Subsidiaries under this
Agreement or any other Operative Document;

                  (c) any Assumed Liabilities;

                  (d) the operation of the Acquired Assets after the Closing; or

                  (e) the enforcement of any rights of the Seller against the
Buyer or any of the Subsidiaries under or in connection with this Agreement or
any other Operative Document.

To the full extent permitted by law, the Buyer covenants on behalf of itself and
its Affiliates not to sue any of the Seller Indemnitees regarding any matters
referenced above.

         9.4. PROCEDURE FOR INDEMNIFICATION. The obligations of the Seller and
the Buyer and the Subsidiaries pursuant to Section 9.2 and Section 9.3,
respectively, with respect to a claim or demand for indemnification shall be
subject to the following terms and conditions:

                  (a) The party making a claim for indemnification pursuant to
this Article 9 (the "Indemnitee") shall promptly give notice to the indemnifying
party (the "Indemnifying Party") of any claim, whether between the parties or
brought by a third party, specifying (i) the basis for such claim or demand, and
(ii) the amount of the claim or demand, to the extent specified or otherwise
known. If the claim or demand for indemnification relates to a claim, action,
suit or proceeding asserted or filed by a third party against the Indemnitee (in
this Section 9.4, a "third-party claim") then such notice shall be given by the
Indemnitee within twenty (20)

                                       35

<PAGE>

days of receipt thereof. The failure of the Indemnitee to give such notice shall
not relieve the Indemnifying Party of its obligations hereunder, except to the
extent the Indemnifying Party is actually materially prejudiced thereby.

                  (b) Following receipt of notice from the Indemnitee of a claim
or demand, the Indemnifying Party shall have fifteen (15) days to make such
investigation of the claim or demand as the Indemnifying Party deems necessary
or desirable. For the purposes of such investigation, the Indemnitee agrees to
make available to the Indemnifying Party (or its authorized representatives) the
information relied upon by the Indemnitee to substantiate the claim or demand.
If the Indemnitee and the Indemnifying Party agree at or prior to the expiration
of said fifteen (15)-day period (or any mutually agreed upon extension thereof)
to the validity and amount of such claim, then the Indemnifying Party shall
immediately pay the full amount of the claim to the extent that such Indemnitee
is entitled to indemnification pursuant to this Section 9.4. If the Indemnitee
and the Indemnifying Party do not agree within such period (or any mutually
agreed upon extension thereof), then the Indemnitee may pursue or exercise any
remedies or rights available to it.

                  (c) After receipt of notice of commencement of any third-party
claim evidenced by service of process or other legal pleading, or with
reasonable promptness after any other assertion in writing of any third-party
claim, the Indemnitee shall give the Indemnifying Party written notice thereof
together with a copy of such claim, process or other legal pleading within the
period set forth in the second sentence of Section 9.4(a). The failure of the
Indemnitee to give the Indemnifying Party such notice shall not relieve the
Indemnifying Party of its obligations except to the extent the Indemnifying
Party is actually materially prejudiced thereby. Subject to the provisions of
Section 9.4(f), the Indemnifying Party shall have the right to undertake the
defense, compromise, or settlement of the third-party claim, by representatives
of its own choosing and at its own expense so long as (i) the third-party claim
seeks only monetary damages and not an injunction or other equitable relief
against the Indemnitee and (ii) the Indemnifying Party diligently conducts such
defense (or, if applicable, compromise or settlement). In such event, the
Indemnitee may participate in the defense, compromise, or settlement with
counsel of its own choice and at its own expense.

                  (d) If the Indemnifying Party, by the 30th day after receipt
of notice of any such claim (or, if earlier, by the 10th day preceding the day
on which an answer or other pleading must be served in order to prevent judgment
by default in favor of the plaintiff), does not elect to defend such third-party
claim, or if the conditions described in clauses (i) and (ii) of Section 9.4(a)
are not satisfied, then the Indemnitee shall have the right to retain counsel
and undertake the defense, compromise or settlement of such third-party claim,
on behalf of, and for the account and risk of, the Indemnifying Party and at the
Indemnifying Party's expense, subject to the right of the Indemnifying Party to
participate, with its own counsel and at its own expense, in the defense,
settlement, or compromise. If the Indemnitee and the Indemnifying Party agree at
or prior to the expiration of the period set forth in this Section 9.4(d) (or
any mutually agreed upon extension thereof) to the validity and amount of such
third-party claim, then the Indemnifying Party shall immediately pay to the
Indemnitee the amount so agreed.

                  (e) If there is a conflict of interests which renders it
inappropriate for the same counsel to represent both the Indemnifying Party and
the Indemnitee in defending,

                                       36

<PAGE>

compromising, or settling a third-party claim, the Indemnifying Party shall be
responsible for paying for separate counsel for the Indemnitee. In such event,
however, if there is more than one party to be indemnified, the Indemnifying
Party shall not be responsible for paying for more than one separate counsel
(which may be a firm of attorneys) to represent the Indemnitees, regardless of
the number of parties to be indemnified.

                  (f) The Indemnifying Party may compromise, settle or resolve
any third-party claim without the consent of the Indemnitee if, and only if,
such compromise, settlement or resolution involves only the payment of money and
the claimant provides to the Indemnitee a full release from all liability in
respect of such claim. Otherwise, the Indemnifying Party may not settle or
compromise or resolve the claim without the prior written consent of the
Indemnitee.

                  (g) The Indemnitee and the Indemnifying Party must cooperate
with all reasonable requests of the other in the defense of any third-party
claim.

                  (h) Any amounts payable by Seller to Buyer indemnities under
this Section may be paid by Seller either in cash, or with a number of share of
Buyer's Common Stock with a value based on their Fair Market Value at such time
paid to Buyer equal to the amount due. The "Fair Market Value" of the Buyer's
Common Stock shall be equal to the average for the ten consecutive business days
immediately prior to the date of determination of the daily closing prices of
the Buyer Common Stock on the principal national securities exchange on which
the Buyer Common Stock is admitted to trading or listed, or if not listed or
admitted to trading on any such exchange, the closing prices as reported by the
Nasdaq National Market or, if applicable, the Nasdaq SmallCap Market, or if not
then included for quotation on the Nasdaq National Market or the Nasdaq SmallCap
Market, the average of the highest reported bid and lowest reported asked prices
as reported by the OTC Bulletin Board or the National Quotations Bureau, as the
case may be, or if not then publicly traded, the fair market price, not less
than book value thereof, of the Buyer Common Stock as determined in good faith
by the independent members of the Board of Directors of the Buyer.

                  (i) The Parties hereby agree that the rights set forth in this
Article 9 shall be an Indemnitee's sole and exclusive remedy against an
Indemnifying Party. Notwithstanding the foregoing, nothing herein shall prevent
any of the indemnified parties from bringing an action based upon allegations of
fraud in connection with this Agreement or bringing an action in equity for
breaches of Section 5.10 and/or Section 6.1 hereof.

         9.5. LIMITATIONS ON INDEMNITY OBLIGATIONS.

                  (a) The Indemnifying Party shall have no obligation to pay any
claim for indemnification pursuant to Section 9.2 or 9.3 of this Agreement
unless and until the aggregate amount of all such claims exceeds One Hundred
Fifty Thousand Dollars ($150,000) (the "Threshold Indemnity Amount"). In the
event the aggregate amount of all such claims for which an Indemnified Party
seeks indemnification hereunder exceeds the Threshold Indemnity Amount, the
Indemnifying Party shall be liable for the entire indemnity amount with respect
to such aggregated claims, including the Threshold Indemnity Amount, up to a
maximum amount equal to One Million Seven Hundred Fifty Thousand Dollars
($1,750,000) (the "Maximum Indemnity Amount"). The Threshold Indemnity Amount
and the Maximum Indemnity Amount

                                       37

<PAGE>

of claim for indemnification shall not apply (i) in the case of fraud, (ii) with
respect to the Excluded Liabilities or the Assumed Liabilities or (iii) to
claims made pursuant to Section 9.2(b) or 9.3(b) relating to covenants set forth
in Article 5 or Article 6 hereof which are to be performed prior to the Closing,
as to which the maximum liability with respect to such claims shall not exceed
Seven Million Five Hundred Thousand Dollars ($7,500,000).

                  (b) Notwithstanding anything to the contrary herein, for
purposes of determining whether there has been a breach and the amount of any
Damages that are the subject matter of a claim for indemnification under Section
9.2(a) or 9.3(a), the Threshold Indemnity Amount shall be the materiality
standard for all purposes and, accordingly, each representation and warranty
shall be read without regard to and without giving effect to (i) any knowledge,
Party's Knowledge, Knowledge of the Party or like qualifiers, or (ii)
materiality or material adverse effect or like qualifiers, that may be contained
in such representation or warranty.

         9.6. TREATMENT OF INDEMNIFICATION PAYMENTS. Any payment by an
Indemnifying Party under this Article 9 will be an adjustment to the Purchase
Price unless a determination (as defined in Section 1313 of the Code) with
respect to the Indemnitee causes any such payment not to constitute an
adjustment to the Purchase Price for United States Federal income tax purposes.

                                   ARTICLE 10

                                  MISCELLANEOUS

         10.1. PRESS RELEASES AND PUBLIC ANNOUNCEMENTS. No party shall issue any
press release or make any public announcement relating to the subject matter of
this Agreement without the prior approval of the other party; PROVIDED, HOWEVER,
that any party may make any public disclosure (including any filings required to
be made with the Securities and Exchange Commission) it believes in good faith
is required by applicable law (in which case the disclosing party will use its
reasonable best efforts to advise the other party prior to making the
disclosure).

         10.2. NO THIRD PARTY BENEFICIARIES. This Agreement shall not confer any
rights or remedies upon any Person other than the parties and their respective
successors and permitted assigns. Without limiting the foregoing, this Agreement
shall not confer any rights or remedies upon any present or former employee,
consultant or agent of the Seller or the Buyer.

         10.3. ENTIRE AGREEMENT. This Agreement (including the Exhibits and
Schedules thereto) together with all other Operative Documents constitutes the
entire agreement between the parties and supersedes any prior understandings,
agreements or representations , oral or written, by or between the parties,
written or oral, to the extent they relate in any way to the subject matter
hereof.

         10.4. SUCCESSION AND ASSIGNMENT. This Agreement shall be binding upon
and inure to the benefit of the parties named herein and their respective
successors and permitted assigns. No party may assign either this Agreement or
any of its rights, interests, or obligations hereunder without the prior written
approval of the other party; PROVIDED, HOWEVER, that the Buyer may: (a) assign
any or all of its rights and interests hereunder to one or more of its
Affiliates; and (b) designate one or more of its Affiliates to perform its
obligations hereunder; PROVIDED FURTHER that

                                       38

<PAGE>

in any case the Buyer nonetheless shall remain responsible for the performance
of all of its obligations hereunder.

         10.5. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

         10.6. HEADINGS. The section headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

         10.7. NOTICES. All notices, requests, demands, claims and other
communications required or permitted to be given under this Agreement shall be
in writing and (i) delivered personally or by a nationally recognized overnight
courier, (ii) transmitted by facsimile, or (iii) sent by registered or certified
mail, return receipt requested, postage prepaid, as follows:

         If to the Seller:

         FairPoint Communications Solutions Corp.
         521 East Morehead Street, Suite 250
         Charlotte, North Carolina 28202
         Facsimile: (704) 344-8121
         Attention: Walter E. Leach, Jr., Vice President and CFO
         Shirley J. Linn, Esq., General Counsel

         with a copy to:

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

         If to Buyer:

         Choice One Communications Inc.
         100 Chestnut Street, Suite 600
         Rochester, New York 14604
         Facsimile: (716) 530-2739
         Attention: Steve M. Dubnik, Chairman and Chief Executive Officer

         With a copy to:

         Nixon Peabody LLP
         1300 Clinton Square
         Rochester, New York  14603
         Facsimile: (716) 263-1600
         Attn:  James A. Locke III, Esq.

                                       39

<PAGE>

         All such notices, requests, claims, demands and other communications
shall be deemed given, effective and received on the date of personal delivery,
the date of transmission by facsimile (with electronic confirmation of receipt),
the next Business Day after being delivered to a nationally recognized courier
for next business day delivery, or on the earlier of receipt or the fifth
Business Day after being sent by certified or registered mail. Any party may
change the address to which notices, requests, demands, claims and other
communications hereunder are to be delivered by giving the other party notice in
the manner herein set forth.

         10.8. GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York, without giving
effect to any choice or conflict of law provision or rule that would cause the
application of the laws of any jurisdiction other than the State of New York.

         10.9. AMENDMENTS AND WAIVERS. No amendment or waiver of any provision
of this Agreement shall be valid unless the same shall be in writing and signed
by the parties. No waiver by any party of any default, misrepresentation or
breach of warranty or covenant hereunder, whether intentional or not, shall be
deemed to extend to any prior or subsequent default, misrepresentation or breach
of warranty or covenant hereunder or affect in any way any rights arising by
virtue of any prior or subsequent such occurrence.

         10.10. SEVERABILITY. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

         10.11. EXPENSES. Except as otherwise provided in this Agreement, each
of the Buyer and the Seller will bear its own costs and expenses (including
legal fees and expenses) incurred in connection with this Agreement and the
transactions contemplated hereby.

         10.12. INTERPRETATION. Any reference to any federal, state, local or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation. Nothing in the
Disclosure Schedule shall be deemed adequate to disclose an exception to a
representation or warranty made herein unless the Disclosure Schedule expressly
identifies such exception and the applicable representation or warranty.

         10.13. CONSTRUCTION. The provisions of this Agreement have been
examined, negotiated and revised by counsel for each party, and shall be
construed without regard to any presumption or other rule requiring construction
against the party causing the drafting of this Agreement.

         10.14. INCORPORATION OF EXHIBITS AND SCHEDULES. The Exhibits and
Sections of the Disclosure Schedule identified in this Agreement are
incorporated herein by reference and made a part hereof.

                                       40

<PAGE>

         10.15. SPECIFIC PERFORMANCE. Each of the parties acknowledges and
agrees that the other party would be damaged irreparably in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached. Accordingly, each of the parties agrees that,
unless otherwise expressly set forth herein, the other party shall be entitled
to an injunction or injunctions to prevent breaches of the provisions of this
Agreement and to enforce specifically this Agreement and the terms and
provisions hereof in any action instituted in any court of the United States or
any state thereof having jurisdiction over the parties and the matter, in
addition to any other remedy to which it may be entitled, at law or in equity.

                         SIGNATURES APPEAR ON NEXT PAGE

                                       41

<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed as of the date first written above by their respective officers
thereunto duly authorized.

                            FAIRPOINT COMMUNICATIONS SOLUTIONS CORP.

                            By:   /S/  WALTER E. LEACH, JR.
                                -----------------------------------
                            Name: Walter E. Leach, Jr.
                            Title: Vice President and Chief Financial Officer

                            CHOICE ONE COMMUNICATIONS INC.

                            By:   /S/ STEVE M. DUBNIK
                                -----------------------------------
                            Name: Steve M. Dubnik
                            Title: Chairman and Chief Executive Officer

                            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.

                            By:   /S/  STEVE M. DUBNIK
                                -----------------------------------
                            Name: Steve M. Dubnik
                            Title: Chairman and Chief Executive Officer

                                       42

<PAGE>

                     DISCLOSURE SCHEDULE

Section 1.1A..................................... Albany Assets

Section 1.1B..................................... Excluded Assets

Section 1.1C..................................... Maine Assets

Section 1.1D..................................... Massachusetts Assets

Section 1.1E..................................... Markets

Section 1.1F..................................... New Hampshire Assets

Section 1.1G..................................... New York Assets

Section 1.1H..................................... Pennsylvania Assets

Section 1.1I..................................... Permitted Liens

Section 1.1J..................................... Software

Section 1.1K..................................... Fiber Assets

Section 2.2(a)................................... Assumed Contracts

Section 2.7...................................... Consents

Section 3.3...................................... Noncontravention

Section 3.6(a)................................... Legal Compliance

Section 3.6(c)................................... Governmental Authorizations

Section 3.7(a)................................... Tax Matters

Section 3.8(a)................................... Assumed Real Property

Section 3.8(c)................................... Leases

Section 3.9...................................... Acquired Assets

Section 3.11..................................... Assumed Contracts

Section 3.13..................................... Litigation

<PAGE>

                                      -2-

Section 3.14(a).................................. Employees

Section 3.14(b).................................. List of Seller's Employees

Section 3.15(a).................................. Employee Benefit Plans

Section 3.16..................................... Environmental, Health and
                                                  Safety

Section 3.16(a).................................. Environmental Permits,
                                                  Licenses and Governmental
                                                  Authorizations

Section 3.16(e) ................................. Environmental Proceedings

Section 3.17..................................... Customers

Section 3.18..................................... Broker's Fees

Section 4.3...................................... Noncontravention

Section 4.5...................................... Outstanding Options, Warrants
                                                  and Other Rights

Section 4.11..................................... Earnings Release

Section 5.6...................................... Determination of Fiber Assets

Section 5.13..................................... Net Lever and Web Hosting
                                                  Customers

Section 6.4...................................... Employees Not Offered
                                                  Employment

<PAGE>

                                      - 3 -

                                    EXHIBITS

Exhibit A........................................ Bill of Sale and General
                                                  Assignment for the Transfer
                                                  of the Maine Assets, New York
                                                  Assets, Pennsylvania Assets
                                                  and Fiber Assets

Exhibit B........................................ Assignment and Assumption
                                                  Agreement

Exhibit C........................................ INTENTIONALLY REMOVED

Exhibit D........................................ INTENTIONALLY REMOVED

Exhibit E........................................ Non-Competition Agreement

Exhibit F........................................ Investor Rights AgreementPrepared by MERRILL CORPORATION

EXHIBIT 4.1  

    *See Restrictive Legend on the Reverse Side.* 

Delaware

**                                        
                                         **
 

SUNTEK CORPORATION  

The Corporation is authorized to issue 50,000,000

shares of the Common Stock, par value $0.01 each.  

 * *  

          * *  

of the Common Stock of Suntek Corporation 

	
 , Secretary	 	
 , President

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THAT ACT AND ANY APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT OR THE COMPANY RECEIVES AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION THEREUNDER IS AVAILABLE. 

THE
CORPORATION WILL FURNISH TO ANY STOCKHOLDER UPON REQUEST AND WITHOUT CHARGE, A FULL STATEMENT OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE PARTICIPATING, OPTIONAL, OR OTHER SPECIAL RIGHTS
OF EACH CLASS OF STOCK OR SERIES AUTHORIZED TO BE ISSUED AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]