EXHIBIT 10.7 (b)

                                  AMENDMENT TO
                              EMPLOYMENT AGREEMENT

THIS AGREEMENT, entered into effective as of the 1st day of January 2001, by and
between Rural Cellular Corporation ("RCC" or "Company") and Ann K. Newhall (the
"Employee").
        WHEREAS, the Company and the Employee have heretofore entered into an
Employment Agreement dated as of February 6, 1999 (the "Employment Agreement"),
which agreement is now in full force and effect;
        WHEREAS, the Employment Agreement provides certain protections for the
Employee in the event of a change in control of the Company; and
WHEREAS, the Company's Board of Directors has determined it is appropriate, and
in the best interests of the Company and its shareholders, to improve the
protections provided to the Employee in the event of a change in control, and to
thereby reinforce and encourage her continued attention and dedication to her
assigned duties without distraction in potentially disturbing circumstances
arising from the possibility of a change in control;
        NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the Company and the Employee agree as follows:
          7.   Section 11 of the Employment Agreement is hereby amended in its
               entirety, to read as follows:
               "11. CHANGE IN CONTROL.
                    (a) The Employee will be entitled to the payments and
          benefits described in this Section 11 if the Employee's employment
          under this Agreement is terminated:
                         (i) by the Company, other than for Just Cause, in
               connection with or within 24 months after the occurrence of a
               Change in Control (as defined in Appendix A hereto); or
                         (ii) by the Employee, for Good Reason, within 24 months
               after the occurrence of a Change in Control (as defined in
               Appendix A hereto).
                    (b) If the Employee satisfies the requirements set forth in
          paragraph (a), the Employee shall be paid an amount equal to the
          greater of either:
                         (i) 299% of the Employee's "base amount" as defined in
               Section 280G(b)(3) of the Internal Revenue Code of 1986, as
               amended (the "Code") and regulations promulgated thereunder, or
                         (ii) provided that the Company's reported EBITDA
               (earnings before taxes, interest, depreciation and amortization)
               margins for the three immediately preceding fiscal years have
               averaged 30%, or greater, an amount equal to the sum of (A) 299%
               of the Employee's annual base salary at the highest rate in
               effect during the period beginning 12 months prior to the
               occurrence of the Change in Control and ending on the date of the
               Employee's termination of employment plus (B) 299% of the largest
               bonus and/or incentive payment (excluding "pay to stay" or
               similar bonuses) payable to the Employee for any fiscal year of
               the Company that ended during the period beginning 12 months
               prior to the occurrence of the Change in Control and ending on
               the date of the Employee's termination of employment.
                         Said amount shall be paid to the Employee in one lump
               sum, within five days after the Employee's termination of
               employment.
                    (c) TERMINATION FOR "GOOD REASON." For the purposes of this
          Section 11, "Good Reason" for termination of employment by the
          Employee shall be the occurrence of any of the following events, which
          have not been consented to in advance by the Employee in writing:
                         (i) If the Employee is employed at the Company's
               principal executive offices at the time of a Change in Control, a
               relocation of such principal executive offices to a location more
               than fifty miles from such location, or a requirement that the
               Employee be based anywhere other than the Company's principal
               executive offices at the time of the Change in Control.
                         (ii) If the Employee is not employed at the Company's
               principal executive offices at the time of a Change in Control,
               the Employee's relocation to any place other than the location at
               which the Employee principally performed her duties prior to the
               Change in Control.
                         (iii) Required travel by the Employee on the Company's
               business to an extent substantially greater than the Employee's
               business travel obligations at the time of the Change in Control.




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                         (iv) A requirement that the Employee report to a person
               or persons other than the President/CEO (or the functional
               equivalent thereof) in the organizational structure of RCC.
                         (v) A failure by RCC to maintain the Employee's base
               compensation in effect as of the date of the Change in Control
               and material fringe benefit, performance incentive and employee
               benefit plans substantially equivalent to those in effect as of
               the date of the Change in Control.
                         (vi) An assignment to the Employee of duties and
               responsibilities other than those normally associated with her
               position as referenced at Section 1 of this Agreement.
                         (vii) A material diminution or reduction of the
               Employee's responsibilities or authority.
                    (d) EXCISE TAX PAYMENTS.
                         (iii) If any payments or benefits due to the Employee
               under this Agreement and/or under any other plan or program of
               the Company would be subject to the tax (the "Excise Tax")
               imposed by Section 4999 of the Code, and if the amount of the
               Employee's parachute payments (as defined in Section 280G(b)(2)
               of the Code) taken into account for the purposes of such Excise
               Tax does not exceed 330% of the Employee's base amount (as
               defined in Section 280G(b)(3) of the Code), then the payments or
               benefits which are subject to the Excise Tax shall be adjusted
               until the amount of such parachute payments equals 299% of such
               base amount. The adjustments shall be made in such manner, and to
               such payments or other benefits, as the Employee and the Company
               shall mutually agree.
                         (ii) If any payments or benefits due to the Employee
               under this Agreement and/or under any other plan or program of
               the Company would be subject to the Excise Tax, and if the amount
               of the Employee's parachute payments (as defined in Section
               280G(b)(2) of the Code) taken into account for the purposes of
               such Excise Tax exceeds 330% of the Employee's base amount (as
               defined in Section 280G(b)(3) of the Code), the Company shall pay
               to the Employee an additional amount (the "Gross-Up Payment") so
               that the net amount that is retained by the Employee, after the
               deduction of the Excise Tax and any other taxes (including Excise
               Taxes) that are imposed upon the Gross-Up Payment (other than
               interest and penalties imposed by reason of the Employee's
               failure to file a timely tax return or pay taxes shown as due on
               her return), is equal to the payments and other benefits the
               Employee would have retained in the absence of the Excise Tax.
               For the purpose of calculating the Gross-Up Payment, the
               Employee's tax rate will be deemed to be the highest marginal
               rate of federal individual income tax, plus the highest marginal
               rates of state, local and/or foreign individual income taxes in
               the state and locality or foreign jurisdiction of the Employee's
               residence (net of the reduction in federal income taxes which
               could be obtained from any deduction or credit attributable to
               the state, local or foreign taxes), that are in effect for the
               calendar year in which the Gross-Up Payment is to be made.
                         (iii) An initial determination as to whether a Gross-Up
               Payment is required pursuant to this Agreement and the amount of
               such Gross-Up Payment shall be made at the Company's expense by
               an accounting firm selected by the Company and reasonably
               acceptable to the Employee which is designated as one of the five
               largest accounting firms in the United States (the "Accounting
               Firm"). The Accounting Firm shall provide its determination (the
               "Determination"), together with detailed supporting calculations
               and documentation, to the Company and the Employee within five
               days of the date of termination of the Employee's employment, if
               applicable, or at such other time as may be requested by the
               Company or the Employee (provided the Employee reasonably
               believes that she may be subject to the Excise Tax). If the
               Accounting Firm determines that no Excise Tax is payable by the
               Employee, it shall furnish the Employee with an opinion to that
               effect which is reasonably acceptable to the Employee. Within ten
               days of the delivery of the Determination to the Employee, the
               Employee shall have the right to dispute the Determination (the
               "Dispute"). The Gross-Up Payment, if any, as determined pursuant
               to this paragraph (d), shall be paid by the Company to the
               Employee within five days of the receipt of the Determination.
               The existence of the Dispute shall not in any way affect the
               Employee's right to receive the Gross-Up Payment in accordance
               with the Determination. Upon the final resolution of a Dispute,
               the Company shall promptly pay to the Employee any additional

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               amount required by such resolution, or, if it is determined that
               the Excise Tax is lower than originally determined, the Employee
               shall repay to the Company the excess amount of the Gross-Up
               Payment. If there is no Dispute, the Determination shall be
               binding, final and conclusive upon the Company and the Employee,
               subject to the application of subparagraph (v) below.
                         (v) Notwithstanding anything contained in this
               Agreement to the contrary, in the event that, according to the
               Determination, an Excise Tax will be imposed on any payment or
               benefit, the Company shall pay to the applicable government
               taxing authorities as Excise Tax withholding, the amount of the
               Excise Tax that the Company has actually withheld from the
               payment or benefit.
                    (e) The Employee's payments and benefits under this Section
          11 shall be in consideration of the Employee's past service and the
          Employee's continued service from the date of this Agreement, and the
          Employee's entitlement thereto shall not be governed by any duty to
          mitigate damages by seeking further employment nor offset by any
          compensation which the Employee may receive from future employment.
                    (f) The payments and other benefits provided under this
          Section 11 shall be in lieu of any other future payments which the
          Employee would otherwise be entitled to receive under Section 9 of
          this Agreement."

          8.   A new paragraph (c) is added at the end of Section 13 of the
               Employment Agreement, to read as follows:
               "(c) The Company will require any successor or assign (whether
               direct or indirect, by purchase, merger, consolidation or
               otherwise) to all or substantially all of the business and/or
               assets of the Company, by agreement expressly, absolutely and
               unconditionally to assume and agree to perform this Agreement in
               the same manner and to the same extent that the Company would be
               required to perform it if no such succession or assignment had
               taken place. Any failure of the Company to obtain such agreement
               prior to the effectiveness of any such succession or assignment
               shall be a material breach of this Agreement and shall entitle
               the Employee to terminate the Employee's employment for Good
               Reason (as defined in Section 11), whereupon the Employee shall
               be entitled to receive the payments and other benefits described
               in this Agreement as though such termination had occurred upon or
               after the occurrence of a Change in Control."

          9.   Except to the extent specifically amended by this Agreement, the
               Employment Agreement shall continue in full force and effect.
                                      * * *

ATTEST                                  RURAL CELLULAR CORPORATION


By /s/ WESLEY E. SCHULTZ                By   /s/ RICHARD P. EKSTRAND
   --------------------------               ----------------------------------
     Assistant Secretary                Richard P. Ekstrand
                                        President and Chief Executive Officer

WITNESS

     /s/ TERESA THOENNES                /s/ ANN K. NEWHALL
-----------------------------           --------------------------------------
          Teresa Thoennes               Ann K. Newhall


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