Document:

<PAGE>
                                                                    EXHIBIT 10.3

                                SECOND AMENDMENT

            SECOND AMENDMENT (this "Amendment"), dated as of May 14, 1999, among
MJD COMMUNICATIONS, INC., a Delaware corporation (the "Borrower"), the lenders
from time to time party to the Credit Agreement referred to below (the
"Lenders"), NATIONSBANK OF TEXAS, N.A., as Syndication Agent (the "Syndication
Agent"), and BANKERS TRUST COMPANY, as Administrative Agent (the "Administrative
Agent" and together with the Syndication Agent, collectively, the "Agents").
Unless otherwise indicated, all capitalized terms used herein and not otherwise
defined shall have the respective meanings provided such terms in the Credit
Agreement referred to below.

                              W I T N E S S E T H :

            WHEREAS, the Borrower, the Lenders and the Agents are parties to a
Credit Agreement, dated as of March 30, 1998 (as amended, modified or
supplemented to the date hereof, the "Credit Agreement"); and

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

            NOW, THEREFORE, it is agreed:

            1.    Section 3.02(A) of the Credit Agreement is hereby amended by
deleting clause (c) of said Section in its entirety and inserting the following
new clause (c) in lieu thereof:

            "(c) On the fifth Business Day following the date of receipt thereof
      by the Borrower and/or any of its Subsidiaries of the Net Cash Proceeds
      from any Asset Sale, an amount equal to 100% of the Net Cash Proceeds from
      such Asset Sale shall be applied as a mandatory repayment of principal of
      the then outstanding Term Loans and if no Term Loans are then outstanding,
      to the RF Loans and the AF Loans, PRO RATA, among such Loans, PROVIDED
      that up to 100% of the Net Cash Proceeds from Asset Sales shall not be
      required to be used to so repay Loans to the extent (i) the Borrower
      elects, as hereinafter provided, to cause such Net Cash Proceeds to be
      used within 180 days of such Asset Sale to finance an Acquisition or
      Acquisitions or Permitted Acquisitions (a "Reinvestment Election") or (ii)
      in the case of Net Cash Proceeds from a Non-Core Asset Sale and so long as
      RF Loans in an aggregate principal amount equal to at least such amount of
      Net Cash Proceeds were incurred to finance an Acquisition or Acquisitions
      or Permitted Acquisitions within 90 days (or, in the case of the Net Cash
      Proceeds from the sale of certain Non-Core Assets of Taconic Technology
      Corp. and Taconic Telephone Corp., 120 days) prior to the date of receipt
      of such Net Cash Proceeds, the Borrower applies all (and not less than
      all) of such Net Cash Proceeds to repay outstanding principal of RF Loans

<PAGE>

      in accordance with Section 3.01 (a "Repayment Election"). The Borrower may
      exercise (x) its Repayment Election with respect to a Non-Core Asset Sale
      if (A) no Default or Event of Default exists and (B) the Borrower delivers
      a written notice signed by an Authorized Officer of the Borrower to the
      Administrative Agent no later than five Business Days following the
      respective Non-Core Asset Sale stating that it has incurred RF Loans in an
      aggregate principal amount equal to or greater than the Net Cash Proceeds
      received from such Non-Core Asset Sale to finance an Acquisition and/or
      Permitted Acquisition within the time period specified in clause (ii)
      above and specifying the relevant Acquisition(s) and/or Permitted
      Acquisition(s) consummated during such period and (y) its Reinvestment
      Election with respect to an Asset Sale if (A) no Default or Event of
      Default exists and (B) the Borrower delivers a Reinvestment Notice to the
      Administrative Agent no later than five Business Days following the date
      of the consummation of the respective Asset Sale, with such Reinvestment
      Election being effective with respect to the Net Cash Proceeds of such
      Asset Sale equal to the Anticipated Reinvestment Amount specified in such
      Reinvestment Notice."

            2.    Section 9 of the Credit Agreement is modified by inserting the
following new definitions in appropriate alphabetical order:

            "Non-Core Asset Sale" shall mean an Asset Sale constituting a sale
      of Non-Core Assets.

            "Repayment  Election"  shall have the meaning  provided in Section
      3.02(A)(c).

            3.    In order to induce the Lenders to enter into this Amendment,
the Borrower hereby (i) makes each of the representations, warranties and
agreements contained in Section 5 of the Credit Agreement and (ii) represents
and warrants that there exists no Default or Event of Default, in each case on
the Second Amendment Effective Date (as defined below), both before and after
giving effect to this Amendment.

            4.    This Amendment is limited as specified and shall not
constitute a modification, acceptance or waiver of any other provision of the
Credit Agreement or any other Credit Document.

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

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

            7.    This Amendment shall become effective on the date (the "Second
Amendment Effective Date") when each of the Borrower and the Required Lenders
shall have

                                      -2-
<PAGE>

signed a counterpart hereof (whether the same or different counterparts) and
shall have delivered (including by way of facsimile transmission) the same to
White & Case LLP, 1155 Avenue of the Americas, New York, NY 10036 Attention:
John Giambalvo (facsimile number 212-354-8113).

            8.    From and after the Second Amendment Effective Date, all
references to the Credit Agreement in the Credit Agreement and the other Credit
Documents shall be deemed to be references to the Credit Agreement as modified
hereby.

                                      * * *

                                      -3-
<PAGE>

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

                                       MJD COMMUNICATIONS, INC.

                                       By: /s/ Timothy W. Henry
                                          --------------------------------------
                                          Name:  Timothy W. Henry
                                          Title: VP of Finance

                                       BANKERS TRUST COMPANY, Individually
                                          and as Administrative Agent

                                       By: /s/ Mary Kay Coyle
                                          --------------------------------------
                                          Name:
                                          Title:

                                       NATIONSBANK OF TEXAS, N.A.,
                                          Individually and as Syndication
                                          Agent

                                       By: /s/ Pamela S. Kurtzman
                                          --------------------------------------
                                          Name:  Pamela S. Kurtzman
                                          Title: Vice President

                                       COBANK, ACB

                                       By: /s/ Rick Freeman
                                          --------------------------------------
                                          Name:  Rick Freeman
                                          Title: Vice President

                                      -4-
<PAGE>

                                       FIRST UNION NATIONAL BANK

                                       By: /s/ Mark L. Cook
                                          --------------------------------------
                                          Name:  Mark L. Cook
                                          Title: Senior Vice President

                                       MORGAN STANLEY DEAN WITTER PRIME
                                          INCOME TRUST

                                       By: /s/ Shiela Finnerty
                                          --------------------------------------
                                          Name:  Shiela Finnerty
                                          Title: Vice President

                                       HELLER FINANCIAL, INC.

                                       By: /s/ K. Craig Gailehugh
                                          --------------------------------------
                                          Name:  K. Craig Gailehugh
                                          Title: Vice President

                                       THE TRAVELERS INSURANCE COMPANY

                                       By: /s/ Allen R. Cantrell
                                          --------------------------------------
                                          Name:  Allen R. Cantrell
                                          Title: Investment Officer

                                       UNION BANK OF CALIFORNIA, N.A.

                                       By: /s/ Ryan D. Flanagan
                                          --------------------------------------
                                          Name:  Ryan D. Flanagan
                                          Title: Assistant Vice President

                                      -5-
<PAGE>

                                       CENTURA BANK

                                       By: /s/ Gregory S. Greer
                                          --------------------------------------
                                          Name:  Gregory S. Greer
                                          Title: Corporate Banking Officer

                                       CIT GROUP/EQUIPMENT FINANCING INC.

                                       By: /s/ Ahmet Beyhan
                                          --------------------------------------
                                          Name:  Ahmet Beyhan
                                          Title: Sr. Credit Analyst

                                       FLEET NATIONAL BANK

                                       By: /s/ Tanya M. Crossley
                                          --------------------------------------
                                          Name:  Tanya M. Crossley
                                          Title: Vice President

                                       DELANO COMPANY
                                          By:  Pacific Investment Management
                                          Company as its Investment Advisor

                                       By: /s/ Mohan V. PhanSalkar
                                          --------------------------------------
                                          Name:  Mohan V. PhanSalkar
                                          Title: Senior Vice President

                                       MEESPIERSON CAPITAL CORP.

                                       By: /s/ Scott Webster
                                          --------------------------------------
                                          Name:  Scott Webster
                                          Title: Vice President

                                       By: /s/ Svein Engh
                                          --------------------------------------
                                          Name:  Svein Engh
                                          Title: Managing Director

<PAGE>

                                       SENIOR DEBT PORTFOLIO
                                          By BOSTON MANAGEMENT AND RESEARCH,
                                          as Investment Manager

                                       By:/s/ Payson F. Swaffield
                                          --------------------------------------
                                          Name:  Payson F. Swaffield
                                          Title: Vice President

                                       OXFORD STRATEGIC INCOME FUND
                                          By:  Eaton Vance Management as
                                          Investment Advisor

                                       By: /s/ Payson E. Swaffield
                                          --------------------------------------
                                          Name:  Payson E. Swaffield
                                          Title: Vice President<PAGE>

                                                                    EXHIBIT 10.4

                           THIRD AMENDMENT AND WAIVER

            THIRD AMENDMENT AND WAIVER (this "Amendment"), dated as of January
12, 2000, among MJD COMMUNICATIONS, INC., a Delaware corporation (the
"Borrower"), the lenders from time to time party to the Credit Agreement
referred to below (the "Lenders"), BANK OF AMERICA, N.A. (f/k/a Bank of America
National Trust and Savings Association, successor by merger to Bank of America,
N.A., f/k/a NationsBank, N.A., successor by merger to NationsBank of Texas,
N.A.), as Syndication Agent (the "Syndication Agent"), and BANKERS TRUST
COMPANY, as Administrative Agent (the "Administrative Agent" and together with
the Syndication Agent, collectively, the "Agents"). Unless otherwise indicated,
all capitalized terms used herein and not otherwise defined shall have the
respective meanings provided such terms in the Credit Agreement referred to
below.

                              W I T N E S S E T H:

            WHEREAS, the Borrower, the Lenders and the Agents are parties to a
Credit Agreement, dated as of March 30, 1998, as amended pursuant to the First
Amendment thereto dated as of April 30, 1998 and the Second Amendment thereto
dated as of May 14, 1999 (as hereinafter modified, amended or supplemented from
time to time, the "Credit Agreement");

            WHEREAS, the Borrower has advised the Lenders that it intends to
consummate an equity financing (the "Financing") pursuant to which it will raise
up to approximately $148 million, of which approximately $78 million will be
raised from the sale of the Borrower's equity securities to Thomas H. Lee
Partners, L.P. and its affiliates and approximately $70 million will be raised
from the sale of the Borrower's equity securities to affiliates of Kelso &
Company ("Kelso");

            WHEREAS, the Borrower has also advised the Lenders that it desires
to use up to approximately $130 million of the proceeds from the Financing to
fund further expansion by its subsidiary, FairPoint Communications Corp.
("FairPoint") and to pay transaction and related fees and expenses
(collectively, the "Transactions"); and

            WHEREAS, in connection with the consummation of the proposed
Transactions and with respect to the other matters discussed herein, the
Borrower has requested that the Lenders and the Agents (i) amend certain
provisions of the Credit

<PAGE>

Agreement and (ii) waive compliance with Sections 7.02, 7.05, 7.06 and 7.10 of
the Credit Agreement on the terms and conditions contained herein;

            NOW, THEREFORE, it is agreed:

            1.    Section 6.07 of the Credit Agreement is hereby amended by:

                  (a)   adding the words "except as set forth in Annex IV" after
      the word "Borrower" and before the words "any Subsidiary" in the thirtieth
      line of such Section; and

                  (b)   adding the words "(other than any PBGC Form 1)" after
      the words "copies of any records, documents or other information required
      to be furnished to the PBGC" in the third sentence thereof.

            2.    Section 7.04 of the Credit Agreement is hereby amended by:

                  (a)   deleting the number "2,000,000" in subsection (c)
      thereof and inserting the number "10,000,000" in lieu thereof; and

                  (b)   deleting the number "1,000,000" in subsection (m) each
      time it appears in such subsection and inserting the number "$5,000,000"
      in lieu thereof.

            3.    Section 7.05 of the Credit Agreement is hereby amended by
deleting the number "30%" contained in clause (ii) of subsection (a) thereof and
substituting the number "50%" in lieu thereof.

            4.    Section 7.10 of the Credit Agreement is hereby amended by
deleting clause (iv) contained therein and substituting the following clause
(iv) in lieu thereof:

            "(iv) so long as no Default or Event of Default exists at the time
      of such payment or would result therefrom, (A) advisory fees paid to Kelso
      and THL (or their Affiliates) during any fiscal year not to exceed the
      greater of (x) $1.0 million or (y) 1.5% of Consolidated EBITDA for such
      year and (B) the reimbursement of expenses to Kelso and THL (or their
      Affiliates) during any fiscal year not to exceed $250,000 in the
      aggregate,"

                                      -2-
<PAGE>

            5.    Section 9 of the Credit Agreement is hereby amended by:

                  (a)   deleting the number "12,500" in the definition of
      "Existing Warrants" contained therein and substituting the number
      "12857.01" in lieu thereof;

                  (b)   deleting the number "5%" contained in clause (iv) of the
      definition of "Permitted Acquired Debt" contained therein and substituting
      the number "10%" in lieu thereof;

                  (c)   adding the words ", each THL Affiliate" after the words
      "each Kelso Affiliate" in the definition of "Permitted Holders" contained
      therein; and

                  (d)   adding the following definitions in appropriate
      alphabetical order:

                  "THL" shall mean THL Equity Advisors IV, LLC.

                  "THL Affiliate" shall mean THL, each investment fund
            controlled by THL and certain parties that are related to THL that
            are investing in the Borrower as part of the Financing.

            6.    All references in the Credit Agreement to MJD Partners, Inc.
are hereby deleted.

            7.    The Company is hereby permitted to reset to zero the amounts
used by it under the $40,000,000 basket provided by Section 7.02(f)(i) so that
such basket will be measured on an aggregate basis from the Third Amendment
Effective Date (as defined below).

            8.    Annex IV of the Credit Agreement is hereby amended and
restated as set forth in the attached Annex IV.

            9.    Effective as of the Third Amendment Effective Date, the
Lenders hereby waive compliance by the Borrower with (a) the Consolidation,
Merger, Sale or Purchase of Assets, etc. covenant set forth in Section 7.02 of
the Credit Agreement in order to permit ST Long Distance Ltd. to transfer the
capital stock of ST Long Distance, Inc. or to permit ST Long Distance, Inc. to
transfer certain of its assets to FairPoint; (b) the Advances, Investments and
Loans covenant set forth in Section 7.06 of the Credit

                                      -3-
<PAGE>

Agreement in order to permit the Borrower, following the closing of the
Financing, to invest up to approximately $130 million in FairPoint, whether as a
loan or through the purchase of common stock of FairPoint or otherwise; (c) the
Transactions with Affiliates covenant set forth in Section 7.10 of the Credit
Agreement in order to permit the Borrower to issue and sell up to approximately
$70 million of its equity securities to Kelso in the Financing; and (d) the
Capital Expenditures covenant set forth in Section 7.05 of the Credit Agreement
for the fiscal year ended December 31, 1999.

            10.   In order to induce the Lenders to enter into this Amendment,
the Borrower hereby (i) makes each of the representations, warranties and
agreements contained in Section 5 of the Credit Agreement and (ii) represents
and warrants that there exists no Default or Event of Default, in each case on
the Third Amendment Effective Date, both before and after giving effect to this
Amendment.

            11.   This Amendment is limited as specified and shall not
constitute a modification, acceptance or waiver of any other provision of the
Credit Agreement or any other Credit Document.

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

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

            14.   This Amendment shall become effective on the date (the "Third
Amendment Effective Date") when each of the Borrower and the Required Lenders
shall have signed a counterpart hereof (whether the same or different
counterparts) and shall have delivered (including by way of facsimile
transmission) the same to White & Case LLP, 1155 Avenue of the Americas, New
York, New York 10036 Attention: John Giambalvo (facsimile number 212-354-8113).

            15.   From and after the Third Amendment Effective Date, all
references to the Credit Agreement in the Credit Agreement and the other Credit
Documents shall be deemed to be references to the Credit Agreement as modified
hereby.

                                       -4-

<PAGE>

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

                                  MJD COMMUNICATIONS, INC.

                                  By:    /s/ Timothy W. Henry
                                        --------------------------------------
                                        Name: Timothy W. Henry
                                        Title:   Vice President of Finance

                                  BANKERS TRUST COMPANY, Individually
                                       and as Administrative Agent

                                  By:    /s/ Susan L. Le Fevre
                                        --------------------------------------
                                        Name: Susan L. Le Fevre
                                        Title:   Director

                                  BANK OF AMERICA, N.A.,
                                       Individually and as Syndication Agent

                                  By:    /s/ Pamela S. Kurtzman
                                        --------------------------------------
                                        Name: Pamela S. Kurtzman
                                        Title:   Vice President

                                  COBANK, ACB

                                  By:    /s/ Rick Freeman
                                        --------------------------------------
                                        Name: Rick Freeman
                                        Title:   Vice President

<PAGE>

                                  FIRST UNION NATIONAL BANK

                                  By:    /s/ C. Brand Hosford
                                        --------------------------------------
                                        Name: C. Brand Hosford
                                        Title:   Vice President

                                  PRIME INCOME TRUST

                                  By:    /s/ Sheila Finnerty
                                        --------------------------------------
                                        Name: Sheila Finnerty
                                        Title:   Vice President

                                  HELLER FINANCIAL, INC.

                                  By:    /s/ K. Craig Gailehugh
                                        --------------------------------------
                                        Name: K. Craig Gailehugh
                                        Title:   Vice President

                                  THE TRAVELERS INSURANCE COMPANY

                                  By:   /s/ Allen R. Cantrell
                                        --------------------------------------
                                        Name:  Allen R. Cantrell
                                        Title: Investment Officer

                                  UNION BANK OF CALIFORNIA, N.A.

                                  By:    /s/ Craig R. Cappal
                                        --------------------------------------
                                        Name: Craig R. Cappal
                                        Title:   Assistant Vice President

<PAGE>

                                  CENTURA BANK

                                  By:    /s/ Gregory R. Greer
                                        --------------------------------------
                                        Name: Gregory R. Greer
                                        Title:   Corporate Banking Officer

                                  THE CIT GROUP/EQUIPMENT
                                    FINANCING, INC.

                                  By:   [illegible signature]
                                        --------------------------------------
                                        Name:
                                        Title:

                                  FLEET NATIONAL BANK

                                  By:    /s/ Shepard D. Rainie
                                        --------------------------------------
                                        Name: Shepard D. Rainie
                                        Title:   Managing Director

                                  DELANO COMPANY

                                  By:   _____________________________
                                        Name:
                                        Title:

<PAGE>

                                  MEESPIERSON CAPITAL CORP.

                                  By:    /s/ Scott T. Webster Jr.
                                        --------------------------------------
                                        Name: Scott T. Webster Jr.
                                        Title:   Vice President

                                  By:   /s/ John C. Preneta
                                        --------------------------------------
                                        Name:  John C. Preneta
                                        Title: Executive Vice President

                                  SENIOR DEBT PORTFOLIO
                                      By BOSTON MANAGEMENT AND
                                      RESEARCH, as Investment Manager

                                  By:    /s/ Payson F. Swaffield
                                        --------------------------------------
                                        Name: Payson F. Swaffield
                                        Title:   Vice President

                                  OXFORD STRATEGIC INCOME FUND

                                  By:    /s/ Payson F. Swaffield
                                        --------------------------------------
                                        Name: Payson F. Swaffield
                                        Title: Vice President

                                       -9-
<PAGE>

                                    Annex IV

         The following plans were the only plans maintained by MJD
Communications, Inc. or any of its Subsidiaries subject to Title IV of ERISA:

         1.     STE/NE Acquisition Corp. Pension Plan for Vermont
                Employees of Transferred GTE Operations (Northland). This
                plan was terminated in 1997 and the assets of the plan
                have been distributed.

         2.     Chautaqua & Erie Telephone Corporation Management Pension Plan.
                This plan was terminated in 1997 and the assets of the plan have
                been distributed.

         3.     Pension Plan for Employees of Chautaqua & Erie Telephone
                Corporation Union Pension Plan. This plan was terminated in 1997
                and the assets of the plan have been distributed.

         4.     Taconic Telephone Corp. Union Employee Defined Benefit
                Plan.  Since the Closing of this Agreement, all assets
                have been distributed.

         5.     Taconic Telephone Corp. Management Employee Defined
                Benefit Plan.  Since the Closing of this Agreement, all
                assets have been distributed.

         6.     Retirement Plan for Employees of the Ellensburg Telephone
                Company.  Plan has been terminated and all assets have
                been distributed.

         7.     Retirement Plan of Utilities Inc. and Associated Employers for
                Utilities, Inc. Plan is in the termination process and the
                assets are not fully distributed. The plan is over-funded and
                the excess funding may result in a reversion of plan assets. If
                the reversion occurs, the plan's sponsor will pay an excise tax
                under Section 4980 of the Code.

         8.     Retirement Plan of Utilities, Inc. and Associated
                Employers for Standish Telephone Company and China
                Telephone Company.  Plan is in the termination process and
                the assets are not fully distributed. The plan is
                over-funded and the excess funding may result in a
                reversion of plan assets.  If the reversion occurs, the
                plan's sponsor will pay an excise tax under Section 4980
                of the Code.

<PAGE>

         9.     Retirement Plan of Utilities, Inc. and Associated Employers for
                Telephone Service Company. Plan is in the termination process
                and the assets are not fully distributed. The plan is
                over-funded and the excess funding may result in a reversion of
                plan assets. If the reversion occurs, the plan's sponsor will
                pay an excise tax under Section 4980 of the Code.

         The following outlines the retiree health benefits made available to
certain employees of MJD Communications, Inc. and its Subsidiaries:

         1.     Odin Telephone Exchange, Inc. has made available to retired
                employees and surviving spouses of retired employees the ability
                to purchase health care benefits at the group rate paid by the
                company.

         2.     Chautaqua & Erie Telephone Corporation has made available to
                retired management employees and surviving spouses of retired
                management employees the ability to purchase health care
                benefits at the group rate paid by the company. The Company also
                provides that retired employees can purchase up to $20,000 of
                life insurance coverage.

         3.     C-R Communications has made available retiree health benefits
                that may be purchased by retired directors.

         4.     Big Sandy Telephone Inc. has made available to retired employees
                and surviving spouses of retired employees the ability to
                purchase health care benefits at the group rate paid by the
                company.

         5.     Upon the acquisition of Northland Telephone Company of Maine and
                Northland Telephone Company of Vermont, ST Enterprises, Ltd. has
                agreed to provide reimbursements for the health benefits for
                employees retiring after the age of 62 up to $1,000 and $150 per
                year to be provided towards the cost of life insurance.

         6.     Taconic Telephone Corp. has made available to retired employees
                and surviving spouses of retired employees the ability to
                purchase health care benefits at the group rate paid by the
                company.

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