This excerpt taken from the FRP 8-K filed Jan 19, 2007.
Section 6.02 Consistent Treatment.
(a) Unless and until there has been a Final Determination to the contrary, each party agrees to treat (i) each of (A) the Contribution, together with the Distribution and (B) the first Internal Spinoff, as a taxfree reorganization qualifying under Section 368(a)(1)(D) of the Code, (ii) each of the Internal Spinoffs and the Distribution as a transaction qualifying under Sections 355 and 361 of the Code, (iii) the Debt Exchange (if consummated) as a transfer of qualified property to Verizons creditors in connection with the reorganization within the meaning of Section 361(c)(3) of the Code; and (iv) the Merger as a reorganization qualifying for nonrecognition under Section 368(a) of the Code, pursuant to each of which no gain or loss is recognized by any of Verizon, Spinco, FairPoint and their respective shareholders and Subsidiaries (except to the extent of cash received in lieu of fractional shares).
(b) Unless and until there has been a Final Determination to the contrary, FairPoint shall file or cause to be filed all Tax Returns of a member of the Spinco Group or relating to the Spinco Business and shall conduct any Tax Contests in respect of a
member of the Spinco Group or the Spinco Business in a manner consistent with Verizons determination of the adjusted Tax basis of any asset and the amount of any Tax Attribute or any similar item held by the Spinco Group at the time of the Distribition.