Exhibit 10.30


 


STOCK REDEMPTION AGREEMENT


dated as of November 10, 2005


 


among


 


SHENANDOAH TELEPHONE COMPANY


and


THE RURAL TELEPHONE BANK


 




 


 







 


 






  STOCK
    REDEMPTION AGREEMENT (this “Agreement,”) dated as of November 10,
    2005, is between the RURAL TELEPHONE BANK
    (the “Bank”) a corporation existing under the laws of the United
    States of America, acting through the Chairman of the Bank and SHENANDOAH
    TELEPHONE COMPANY (the “Holder,”) a corporation
    existing under the laws of the State of Virginia.


 


  WHEREAS,
    the Board of Directors of the Bank has authorized the liquidation and dissolution
    of the Bank and approved a plan of liquidation in a Resolution adopted at
    its board meeting held on August 4, 2005;




WHEREAS, the Bank and the United States of America (“Government,”) acting through the Rural Utilities Service (“RUS,”) have entered into a Loan Transfer Agreement, dated as of August 4, 2005, pursuant to which the Bank has conveyed to RUS the Bank’s liquidating account loan portfolio as part of the consideration for RUS’ agreement to return all of its Class A Stock to the Bank for redemption and cancellation;


WHEREAS, upon transfer to the Government, no further advances will be made on the Liquidating Account Loans, as hereinafter defined;


  WHEREAS,
    pursuant to Section 4l1 of the Act (defined herein), the Bank will pay all
    of its liabilities and will redeem and cancel all of its outstanding Class
    A Stock;


WHEREAS, the Bank has converted the paper stock certificates of its outstanding shares of Class B Stock and Class C Stock to electronic “book-entry” certificates and has canceled its printed stock certificates;


WHEREAS, pursuant to the Board of Directors’ plan of liquidation, the Bank is required to redeem all of its outstanding Class B Stock and Class C Stock;


  WHEREAS,
    pursuant to Sections 2.2 and 2.4 of the Bylaws of the Bank, as amended, the
    Holder is the owner of certain shares of Class B Stock and/or Class C Stock
    of the Bank; and


WHEREAS, the Holder has heretofore adopted, executed, and returned the Redemption Resolution (defined herein), authorizing the undersigned to execute and deliver this Agreement to the Bank on behalf of the Holder;


THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties agree and bind themselves as follows:


 


  ARTICLE
    I

 

  DEFINITIONS


“Act” means Title IV of the Rural Electrification Act of 1936, 7 U.S.C. § 941 et seq, as amended. 


“Agreement” means this Stock Redemption Agreement between the Bank and the Holder.


 


 


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“Class A Stock” means all of the shares of Class A Stock of the Bank issued and outstanding pursuant to Section 406(c) of the Act.


“Class B Stock” means all of the shares of Class B Stock of the Bank issued and outstanding pursuant to Section 406(d) of the Act.


“Class C Stock” means all of the shares of Class C Stock of the Bank issued and outstanding pursuant to Section 406(e) of the Act.


  “Financing
    Account Loan(s)” mean all loans of the Holder
    owed to or held by the Bank on or after October 1, 1991.


“Liquidating Account” means the Rural Telephone Bank Liquidating Account, as identified by Treasury account code 12-4231-0-3-452.


  “Liquidating
    Account Loan(s)” mean all loans of the Holder
    owed to or held by the Bank before October 1, 1991” as listed on Schedule
    I.


  “Loan
    Transfer Agreement” means the Loan Transfer Agreement,
    dated as of August 4, 2005, between the United States of America, acting through
    the Administrator of RUS, successor to the Rural Electrification Administration,
    and the Bank.


“Redemption  Resolution” means that certain resolution passed by the board of  directors  or  other  governing  body of the  Holder  which  authorizes  the execution  and delivery of this  Agreement by the  undersigned  on behalf of the Holder.


ARTICLE II


 


REPRESENTATIONS AND WARRANTIES OF THE HOLDER


 


Section 2.1 Representations and Warranties. The Holder does here by represent and warrant as follows:


 



	
             
 	
            (a)
 	
            The Holder is the lawful owner of Class B Stock and/or Class C Stock of the Banking the amounts listed on Schedule II hereto.
 




 




	
             
 	
            (b)
 	
            All of the information on Schedule II hereto is true and correct.
 




 



	
             
 	
            (c)
 	
            The
          undersigned signatory for the Holder is duly authorized by the Holder
          to execute and deliver this Agreement on behalf of the Holder and to
          bind the Holder hereunder.
 




 



	
             
 	
            (d)
 	
            The Redemption Resolution has been duly adopted by the board of directors or other governing body of the Holder and is currently in full force and effect and has not been repealed, modified, or amended by the Holder.
 




 



 


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   ARTICLE
    III

    



REDEMPTION OF CLASS B STOCK AND CLASS C STOCK


 


Section 3.1 Delivery of Shares. The Holder hereby delivers all of its Class B Stock and/or Class C Stock of the Bank, in the amount(s) specified on Schedule II hereto, for redemption and cancellation.


 


  Section
    3.2 Redemption of Class B Stock.
    From funds in the Liquidating Account, the Bank shall redeem at par all of
    the Holder’s Class B Stock, in the amount specified in Schedule II hereto,
    pursuant to the terms of Section 411 of the Act and Section 2.2 of the Bylaws
    and shall cancel such Class B Stock.


 


  Section
    3.3 Redemption of Class C Stock.
    Pursuant to Section 411 of the Act and Section 2.2 of the Bylaws, after payment
    of all of the Bank’s liabilities, redemption of all outstanding Class
    A Stock, redemption of outstanding Class B Stock and monetary set aside for
    any unredeemed Class B Stock, all of the Holder’s Class C Stock shall
    be redeemed from the remaining funds in the Liquidating Account as follows:


 



	
             
 	
            (a) 
 	
            If the funds remaining in the Liquidating Account are sufficient to redeem all outstanding Class C Stock at par, the Class C Stock shall be redeemed at par, as specified in Schedule II hereto; or
 




 



	
             
 	
            (b) 
 	
            If the funds remaining in the Liquidating Account are insufficient to redeem all outstanding Class C Stock at par, the Class C Stock shall be redeemed, as determined by the following formula:
 




 


  (Cash
    Remainder in Liquidating Account x Holder’s number of Class C Stock)


Total outstanding number of Class C Stock


 


The Bank shall thereafter cancel such Class C Stock.


 


  Section
    3.4 Payment.
    All amounts to be paid to the Holder of Class B Stock and Class C Stock shall
    be paid as follows:



	
             
 	
            (a)
 	
            Via wire transfer to the banking institution and account specified by the Holder on Schedule II hereto;
 




 


	
             
 	
            (b) 
 	
            
No payments shall be made here under until one hundred and twenty (120) days

from the date hereof; the Bank shall use reasonable best efforts to make

payments on properly documented and undisputed claims received by such date

within sixty (60) days there after; and
 



 



	
             
 	
            (c) 
 	
            
Notwithstanding Paragraph 3.4(b), the Holder shall have no claim, with respect to the redemption of Class B or C Stock, to any amount other than that provided in Sections 3.2 and 3.3 hereof, and shall not be entitled to any interest or claims for payment delays.

 




 


  Section
    3.5 Release of Claims. By executing
    this Agreement, the Holder hereby acknowledges and agrees that the redemption
    and cancellation by the Bank of the Class B Stock and Class C Stock held by the Holder as contemplated by this Agreement constitutes the full and  


 



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complete satisfaction by the Bank of all of its obligations with respect to the redemption, payment and cancellation of the Class B
Stock and Class C Stock owned by the Holder. 


 


ARTICLE IV



NO FURTHER ADVANCES


 


Section 4.1 Liquidating Account. The Holder acknowledges and agrees that the Government, upon  acquisition  of the Bank’s loan portfolio, shall make no further advances on the Liquidating Account Loan(s) and the unadvanced Liquidating Account Loan funds are hereby rescinded.


Section 4.2 Unadvanced Financing Account Loan Funds for Stock Purchases. The Holder acknowledges and agrees that the Government, upon liquidation or dissolution of the Bank, shall make no further advances on the portion of the Financing Account Loan(s) for purchases of Class B Stock and that such funds may be rescinded at the discretion of the Government.


ARTICLE V

MISCELLANEOUS


 


  Section
    5.1 Entire
    Agreement.
    This Agreement, together with the attached documents, which are incorporated
    herein, embodies the entire agreement of the parties hereto in relation to
    the subject matter herein and supersedes all prior understandings or agreements,
    oral or written, between the parties.


  Section
    5.2 Headings.
    The headings and subheadings contained in this Agreement, except the terms
    identified for definition in Article I and elsewhere in this Agreement, are
    inserted for convenience only and shall not affect the meaning or interpretation
    of this Agreement or any provision hereof.


  Section
    5.3 Counterparts.
    This Agreement may be executed in any number of counterparts, each of which
    when so executed shall be deemed to be an original and all of which when taken
    together shall constitute one and the same Agreement.


  Section
    5.4 Governing Law.
    THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS HEREUNDER SHALL BE GOVERNED
    BY AND CONSTRUED IN ACCORDANCE WITH THE FEDERAL LAW OF THE UNITED STATES OF
    AMERICA, AND IN THE ABSENCE OF CONTROLLING FEDERAL LAW, IN ACCORDANCE WITH
    THE LAWS OF THE DISTRICT OF COLUMBIA. 


  Section
    5.5 Successors.
    All terms and conditions of this Agreement shall be binding on the successors
    and assigns of the Bank and the Holder. Except as otherwise specifically provided
    in this Agreement, nothing expressed or referred to in this Agreement is intended
    or shall be construed to give any person other than the Bank or the Holder,
    and legal or equitable right, remedy or claim under or with respect to this
    Agreement or any provisions contained herein, it being the intention of the
    parties hereto that this Agreement, the obligations and statements of responsibilities
    hereunder, and all other conditions and provisions hereof are for the sole
    and exclusive benefit of the Bank and the Holder. 


 


 


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  Section
    5.6. Modification; Assignment.
    No amendment or other modification, or assignment of any part of this Agreement
    shall be effective except pursuant to a written agreement subscribed by the
    duly authorized representatives of the parties hereto. 


 


Section 5.7 Remedies. The Bank may pursue all rights and remedies available to the Bank in connection with this Agreement, including, but not limited to, a suit for specific performance, injunctive relief or damages in connection with any fraud, misrepresentation, misstatement made by the Holder in this Agreement (including Schedule II hereto).


 


Section 5.8 Notice. All notices and other communications hereunder to be made to the parties shall be in writing and shall be addressed as specified below as appropriate. The address, telephone number, or facsimile number for either party may be changed at any time and from time to time upon written notice given by such changing party to the other party. A properly addressed notice or other communication shall be deemed to have been delivered at the time it is sent by facsimile (fax) transmission, provided that the original of such faxed notice or other communication shall have been received within five (5) business days.


 


The Bank


United States Department of Agriculture


1400 Independence Avenue, S.W. 


  Washington,
    D.C. 20250-I 500 

    Attention: Governor 

    Fax : (202) 720-0810


 


The Holder


As listed on Schedule II


  Section
    5.9 Severability.
    If any provision of this Agreement is declared invalid or unenforceable, then,
    to the extent possible, all of the remaining provisions of this Agreement
    shall remain in full force and effect and shall be binding upon the parties
    hereto. 


 


 


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  IN
    WITNESSES WHEREOF, the parties here to have caused
    this Agreement to be duly executed as of the day and year first above written. 


 


SHENANDOAH TELEPHONE COMPANY


 


By: [ILLEGIBLE]                                          
      


Name: 


Title:


 


RURAL TELEPHONE BANK


 


By: [ILLEGIBLE]                                          
      



	
             
 	
            as Chairman of the Rural Telephone Bank
 



 


 


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SCHEDULE I


 


LIQUIDATING ACCOUNT LOANS 


OF THE HOLDER


 



	
            Loan Designation
 	
            Balance of Unadvanced Funds as of October 1, 2005
 
	
            None
 	
             
 



 


 


 




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