Document:

ex10-1.htm

    
      

    

    Exhibit 10.1

     

    
      AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

       

      Amended
and Restated Employment Agreement, dated as of April 27, 2009 (this “Agreement”), by and
between OTELCO INC., a Delaware corporation (“Otelco” or the “Company”), and ROBERT
SOUZA (the “Employee”).

       

      WHEREAS,
the Employee and Pine Tree Holdings, Inc., a Delaware corporation and a
wholly-owned subsidiary of the Company, have entered into that certain Employee
Agreement, dated as of July 30, 2002, as amended on October 31, 2008 and
December 31, 2008 (as amended, the “Prior
Agreement”).

       

      WHEREAS,
the Company and the Employee desire to amend and restate the terms of the Prior
Agreement.

       

      NOW
THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

       

      SECTION
1.    Effective
Date.

       

      This
Agreement shall become effective on the date first written above (the “Effective
Date”).

       

      SECTION
2.    Employment
Period.

       

      Subject
to Section 4,
the Company hereby agrees to employ the Employee, and the Employee hereby agrees
to be employed by the Company, in accordance with the terms and provisions of
this Agreement, for the period from the Effective Date through the Termination
Date (the “Employment
Period”).

       

      SECTION
3.    Terms of
Employment.

       

      (a)    Duties and Position.
During the Employment Period, the Employee shall serve as the Company’s Vice
President of Operations, New England Division. As such, the Employee shall have
duties and responsibilities commensurate with such position and such other
duties and responsibilities as may from time to time be assigned to or vested in
the Employee by the Company’s board of directors (the “Board”), the
Company’s Chief Executive Officer or the Company’s Senior Vice President, New
England Division.

       

      (b)    Full Time. During the
Employment Period, and excluding any periods of vacation and sick leave to which
the Employee is entitled, the Employee agrees to devote his full business time
and efforts, to the best of his ability, experience and talent, to the business
and affairs of the Company. During the Employment Period, it shall not be a
violation of this Agreement for the Employee to serve on corporate, civic or
charitable boards or committees or manage personal investments (including
serving as a member of boards of directors or similar bodies of entities not
engaged in competition with Otelco or its subsidiaries (collectively, the “Company Entities”)
(as determined by the Board in its reasonable discretion)), in each case, so
long as such activities do not interfere with the performance of the Employee’s
responsibilities as an employee of the Company in accordance with this
Agreement.

       

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

         

      

      (c)    Compensation.

       

      (i)           Base Salary. During
the Employment Period, the Employee shall receive an annual base salary of
$165,000 which annual base salary shall be subject to annual increase by an
amount equal to at least the increase in the cost of living, if any, between the
date of the immediately preceding increase and the date of each such adjustment,
based upon the Consumer Price Index for Urban Consumers, or if that index is
discontinued, a similar index prepared by a department or agency of the United
States government (as so adjusted, the “Annual Base Salary”).
The Annual Base Salary shall be paid in accordance with the customary payroll
practices of the Company, subject to withholding and other payroll
taxes.

       

      (ii)           Bonus. For each
fiscal year during the Employment Period, the Employee shall be entitled to
receive a bonus (the “Bonus”) of up to 25%
of the Annual Base Salary.

       

      (iii)           Special
Bonus.  The Employee shall be entitled to receive the Special
Bonus on or about December 31, 2012 (the “Special Bonus
Date”).

       

      (iv)           Benefits. During the
Employment Period, the Employee shall be entitled to participate in all
incentive (including any long term incentive plan), savings and retirement
plans, practices, policies and programs applicable generally to other employees
of the Company and shall be eligible for participation in and shall receive all
benefits under welfare benefit plans, practices, policies and programs provided
by the Company to the extent applicable generally to other employees of the
Company.

       

      (v)           Automobile.  During
the Employment Period, the Company shall provide the Employee with the use of a
Company automobile (or, at the Company’s option, shall lease an automobile for
the Employee’s use) and shall reimburse the Employee for all reasonable expenses
incurred by the Employee in connection with the use and maintenance of such
automobile.

       

      (vi)           Expenses. The
Employee shall be entitled to receive reimbursement for all reasonable expenses
incurred by the Employee during the Employment Period in connection with the
performance of his duties hereunder, in accordance with the policies, practices
and procedures of the Company as in effect from time to time.

       

      (vii)           Vacation and
Holidays. During the Employment Period, the Employee shall be entitled to
paid holidays and vacation in accordance with the policies of the Company
generally applicable to other employees of the Company generally.

       

      SECTION
4.    Termination of
Employment.

       

      (a)    Death or Disability.
The Employee’s employment shall terminate automatically upon the Employee’s
death or Disability. For purposes of this Agreement, “Disability” shall
mean the Employee’s inability to perform his duties and obligations hereunder
for any 90 days during a period of 180 consecutive days due to mental or
physical incapacity as determined by a physician selected by the Company or its
insurers.

       

      
        
          
          

        

        
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      (b)    Termination by the
Employee. The Employee may terminate his employment with the Company at
any time, without prior notice.

       

      (c)    Termination by the
Company. The Company may terminate the Employee’s employment with the
Company at any time, with or without Cause and without prior notice. “Cause” will mean that
any of the following will have occurred (i) the Employee has been convicted of a
felony, stolen funds or otherwise engaged in fraudulent conduct, (ii) the
Employee has engaged in willful misconduct or has been grossly negligent, in
each case, which has been materially injurious to the Company, (iii) the
Employee has failed or refused to comply with directions of the Board that are
reasonably consistent with the Employee’s current position or (iv) the Employee
has breached the terms of this Agreement. “Without Cause” shall
mean a termination by the Company of the Employee’s employment during the
Employment Period for any reason other than a termination based upon Cause,
death or Disability.

       

      SECTION
5.    Obligations of the Company
upon Termination.

       

      (a)    Without Cause. If,
during the Employment Period, the Company shall terminate the Employee’s
employment Without Cause, then the Company will provide the Employee with the
following severance payments and/or benefits:

       

      (i)           The
Company shall pay to the Employee a lump sum in the amount of the Employee’s
accrued but unpaid Annual Base Salary through the Termination Date (“Accrued
Obligations”);

       

      (ii)           The
Employee and, if applicable, members of his family shall be entitled to continue
their participation in the Company’s welfare and benefit plans (the “Benefits”) through
the Termination Date;

       

      (iii)           The
Company shall pay to the Employee a lump sum in the amount of one-half (1/2) of
his Annual Base Salary within six (6) months following termination but not later
than March 14 of the calendar year following termination;

       

      (iv)           The
Company shall pay to the Employee the Special Bonus on the Special Bonus Date;
and

       

      (v)           The
Company shall pay to the Employee a lump sum amount equal to the Bonus the
Employee would have received had he remained employed by the Company through the
end of the fiscal year in which the termination occurred, pro rated for the
number of days the Employee was employed by the Company during such fiscal year,
to be paid at the same time that similar bonuses are paid to the Company’s other
employees.

       

      (b)    Cause; by the Employee;
Death or Disability. If the Employee’s employment shall be terminated by
the Company for Cause, by the Employee for any reason, or due to death or
Disability, then the Company shall have no further payment obligations to the
Employee (or his heirs or legal representatives) other than for (i) payment of
Accrued Obligations and (ii) the continuance of Benefits through the Termination
Date.

       

      
        
          
          

        

        
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      (c)    Condition; Release.
The Employee acknowledges and agrees that the Company’s obligations to make
payments under Section
5(a) will be conditioned on the Employee executing and delivering a
customary general release in form and substance reasonably satisfactory to the
Company.

       

      SECTION
6.    Nondisclosure and Nonuse of
Confidential Information.

       

      (a)    The Employee
shall not disclose or use at any time, either during the Employment Period or
thereafter, any Confidential Information (as hereinafter defined) of which the
Employee is or becomes aware as a consequence of or in connection with his
employment with the Company, whether or not such information is developed by
him, except (i) to the extent that such disclosure or use is in furtherance of
the Employee’s performance in good faith of his duties as the Company’s Vice
President of Operations, New England Division or (ii) to the extent required by
law or legal process; provided that (A) the
Employee agrees to provide the Company with prompt written notice of any such
law or legal process and to assist the Company, at the Company’s expense, in
asserting any legal challenges to or appeals of such law or legal process that
the Company in its sole discretion pursues, and (B) in complying with any such
law or legal process, the Employee shall limit his disclosure only to the
Confidential Information that is expressly required to be disclosed by such law
or legal process. The Employee will take all commercially reasonable steps to
safeguard Confidential Information and to protect it against disclosure, misuse,
espionage, loss and theft. The Employee shall deliver to the Company on the
Termination Date, or at any time the Company may request, all memoranda, notes,
plans, records, reports, computer tapes and software and other documents and
data (and copies thereof) relating to the Confidential Information or the Work
Product (as hereinafter defined) of the Company Entities which the Employee may
then possess or have under his control.

       

      (b)           The
Employee agrees that all Work Product belongs in all instances to the Company
Entities. The Employee will promptly disclose such Work Product to the Board and
perform all actions reasonably requested by the Board (whether during or after
the Employment Period) to establish and confirm the Company Entities’ ownership
of the Work Product (including, without limitation, the execution and delivery
of assignments, consents, powers of attorney and other instruments) and to
provide reasonable assistance to the Company Entities (whether during or after
the Employment Period), at the Company’s sole expense, in connection with the
prosecution of any applications for patents, trademarks, trade names, service
marks or reissues thereof or in the prosecution or defense of interferences
relating to any Work Product. The Employee recognizes and agrees that the Work
Product, to the extent copyrightable, constitutes works for hire under the
copyright laws of the United States.

       

      
        
          
          

        

        
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      (c)           “Confidential
Information” means information that is not generally known to the public
and that is used, developed or obtained by the Company Entities in connection
with their business, including, but not limited to, information, observations
and data obtained by the Employee while employed by the Company or any
predecessors thereof (including those obtained prior to the date of this
Agreement) concerning (i) the business or affairs of Otelco and its Affiliates
(including the Company Entities) and (ii) products, services, fees, costs,
pricing structures, analyses, drawings, photographs and reports, computer
software (including operating systems, applications and program listings), data
bases, accounting and business methods, inventions, devices, new developments,
methods and processes (whether patentable or unpatentable and whether or not
reduced to practice), customers and clients and customer and client lists, all
technology and trade secrets, and all similar and related information in
whatever form. Confidential Information will not include any information that
(A) is or becomes generally available to the public other than through
disclosure by the Employee in violation of this Section 6, (B) was
provided to the Employee prior to the date hereof on a non-confidential basis
from a Person who was not otherwise bound by a confidentiality agreement or duty
to Otelco or its Affiliates (including the Company Entities) or (C) becomes
available to the Employee on a non-confidential basis from a Person who is not
otherwise bound by a confidentiality agreement with or duty to Otelco or its
Affiliates (including the Company Entities) or is not otherwise prohibited from
transmitting the information to the Employee.

       

      (d)           “Work Product” means
all inventions, innovations, improvements, technical information, systems,
software developments, methods, designs, analyses, drawings, reports, service
marks, trademarks, trade names, trade dress, logos and all similar or related
information (whether patentable or unpatentable) which relates to a Company
Entity’s actual or anticipated business, research and development or existing or
future products or services and which are conceived, developed or made by the
Employee (whether or not during usual business hours and whether or not alone or
in conjunction with any other Person) during the Employment Period together with
all patent applications, letters patent, trademark, trade name and service mark
applications or registrations, copyrights and reissues thereof that may be
granted for or upon any of the foregoing.

       

      SECTION
7.    Non-Compete and
Non-Solicit.

       

      (a)           The
Employee acknowledges that, in the course of the Employee’s employment with the
Company, the Employee has become familiar, or will become familiar, with
Otelco’s and its Affiliates’ (including the Company Entities’) trade secrets and
with other Confidential Information concerning Otelco and its Affiliates
(including the Company Entities) and that his services have been and will be of
special, unique and extraordinary value to Otelco and its Affiliates (including
the Company Entities). Therefore, the Employee agrees that, during the
Employment Period and for six (6) months thereafter (the “Restricted Period”),
the Employee shall not directly or indirectly (i) engage, within the Restricted
Territory, in any telephone or communications business, including, but not
limited to, incumbent local exchange carrier, long distance telephone business,
cable television, Internet access, or other business that Otelco or any of its
Affiliates (including the Company Entities) is engaged in during the Employee’s
employment by the Company (the “Company Business”),
(ii) compete or participate as agent, employee, consultant, advisor,
representative or otherwise in any enterprise engaged in a business which has
any operations engaged in the Company Business within the Restricted Territory
or (iii) compete or participate as a stockholder, partner, member or joint
venturer, or have any direct or indirect financial interest, in any enterprise
which has any material operations engaged in the Company Business within the
Restricted Territory; provided, however, that nothing
contained herein will prohibit the Employee from (A) owning, operating or
managing any business, or acting upon any business opportunity, after obtaining
approval of a majority of the Board or (B) owning no more than five percent (5%)
of the equity of any publicly traded entity with respect to which the Employee
does not serve as an officer, director, employee, consultant or in any other
capacity other than as an investor. The term “Restricted Territory”
means all states within the United States in which Otelco or any of its
Affiliates (including the Company Entities) conducts or is pursuing or analyzing
plans to conduct Company Business as of the Termination Date.

       

      
        
          
          

        

        
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      (b)           As
a means reasonably designed to protect Confidential Information, the Employee
agrees that, during the period commencing on the Effective Date and ending on
the expiration of the Restricted Period, the Employee will not (i) solicit or
make any other contact with, directly or indirectly, any customer of Otelco or
any of its Affiliates (including the Company Entities) as of the date that the
Employee ceases to be employed by the Company with respect to the provision of
any service to any such customer that is the same or substantially similar to
any service provided to such customer by Otelco or any of its Affiliates
(including the Company Entities) or (ii) solicit or make any other contact with,
directly or indirectly, any employee of Otelco or any of its Affiliates
(including the Company Entities) on the date that the Employee ceases to be
employed by the Company (or any Person who was employed by Otelco or any of its
Affiliates (including the Company Entities) at any time during the three-month
period prior to the Termination Date) with respect to any employment, services
or other business relationship.

       

      SECTION
8.    Remedies.

       

      The
Employee acknowledges that irreparable damage would occur in the event of a
breach of the provisions of Section 6 or Section 7 by the
Employee. It is accordingly agreed that, in addition to any other remedy to
which it is entitled at law or in equity, the Company will be entitled to an
injunction or injunctions to prevent breaches of such sections of this Agreement
and to enforce specifically the terms and provisions of such
sections.

       

      SECTION
9.    Definitions.

       

      “Accrued Obligations”
has the meaning set forth in Section
5(a)(i).

       

      “Affiliate” means,
with respect to any Person, any other Person that is controlled by, controlling
or under common control with, such Person. Notwithstanding anything to the
contrary contained herein, with respect to Otelco, the term “Affiliate” will
include, without limitation, each Person with an ownership interest in Otelco
(and each member, stockholder or partner of each such Person) and each Person in
which any stockholder of Otelco (and each member, stockholder or partner of each
such Person) holds or has the right to acquire, collectively, more than 10% of
the voting equity interests.

       

      “Agreement” has the
meaning set forth in the Caption.

       

      “Annual Base Salary”
has the meaning set forth in Section
3(c)(i).

       

      “Benefits” has the
meaning set forth in Section
5(a)(ii).

       

      “Board” has the
meaning set forth in Section
3(a).

       

      
        
          
          

        

        
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      “Bonus” has the
meaning set forth in Section
3(c)(ii).

       

      “Business Day” means
any day that is not a Saturday, Sunday, legal holiday or other day on which
banks are required to be closed in New York, New York.

       

      “Cause” has the
meaning set forth in Section
4(c).

       

      “Company” has the
meaning set forth in the Caption.

       

      “Company Business” has
the meaning set forth in Section
7(a).

       

      “Company Entities” has
the meaning set forth in Section
3(b).

       

      “Confidential
Information” has the meaning set forth in Section
6(c).

       

      “Disability” has the
meaning set forth in Section
4(a).

       

      “Effective Date” has
the meaning set forth in Section
1.

       

      “Employee” has the
meaning set forth in the Caption.

       

      “Employment Period”
has the meaning set forth in Section
2.

       

      “Otelco” has the
meaning set forth in the Caption.

       

      “Person” means an
individual, partnership, corporation, limited liability company, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.

       

      “Prior Agreement” has
the meaning set forth in the Recitals.

       

      “Restricted Period”
has the meaning set forth in Section
7(a).

       

      “Restricted Territory”
has the meaning set forth in Section
7(a).

       

      “Special Bonus” means
$82,500.

       

      “Special Bonus Date”
has the meaning set forth in Section
3(c)(iii).

       

      “Termination Date”
means the effective date of the termination of the Employee’s employment with
the Company, for any reason, by any party, or by death or
Disability.

       

      “Without Cause” has
the meaning set forth in Section
4(c).

       

      “Work Product” has the
meaning set forth in Section
6(d).

       

      SECTION
10.        General
Provisions.

       

      (a)           Severability. It is
the desire and intent of the parties hereto that the provisions of this
Agreement be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of this Agreement shall be adjudicated
by a court of competent jurisdiction to be invalid, prohibited or unenforceable
for any reason, such provision, as to such jurisdiction, shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.
Notwithstanding the foregoing, if such provision could be more narrowly drawn so
as not to be invalid, prohibited or unenforceable in such jurisdiction, it
shall, as to such jurisdiction, be so narrowly drawn, without invalidating the
remaining provisions of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction.

       

      
        
          
          

        

        
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      (b)           Entire Agreement.
This Agreement amends, restates and supersedes the Prior Agreement and embodies
the complete agreement and understanding among the parties hereto with respect
to the subject matter hereof. This Agreement supersedes and preempts any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any
way.

       

      (c)           Survival.
Notwithstanding anything to the contrary contained herein, the provisions of
Section 6,
Section 7 and
Section 8 shall
survive the termination of this Agreement.

       

      (d)           Counterparts. This
Agreement may be executed in separate counterparts, each of which is deemed to
be an original and all of which taken together constitute one and the same
agreement.

       

      (e)           Successors and Assigns;
Beneficiaries. This Agreement is personal to the Employee and without the
prior written consent of the Company shall not be assignable by the Employee
other than by will or the laws of descent and distribution. This Agreement shall
inure to the benefit of and be enforceable by the Employee’s heirs and legal
representatives and the successors and assigns of the Company. The Company
reserves the right to assign this Agreement in whole or in part to any of its
Affiliates and upon any such assignment, the term “Company” will be
deemed to be such Affiliate.

       

      (f)           Governing Law. THIS
AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING
PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION)
THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK
TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF
NEW YORK WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT,
EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE
SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

       

      (g)           Waiver of Jury Trial.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER
HEREOF.

       

      
        
          
          

        

        
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      (h)           Amendment and Waiver.
The provisions of this Agreement may be amended and waived only with the prior
written consent of the Employee and the Company and no course of conduct or
failure or delay in enforcing the provisions of this Agreement shall be
construed as a waiver of such provisions or affect the validity, binding effect
or enforceability of this Agreement or any provision hereof.

       

      (i)           Notices. All notices,
requests, demands, claims, consents and other communications which are required
or otherwise delivered hereunder shall be in writing and shall be deemed to have
been duly given if (i) personally delivered or transmitted by electronic mail,
(ii) sent by nationally recognized overnight courier, (iii) mailed by registered
or certified mail with postage prepaid, return receipt requested, or (iv)
transmitted by facsimile (with a copy of such transmission concurrently
transmitted by registered or certified mail with postage prepaid, return receipt
requested), to the parties hereto at the following addresses (or at such other
address for a party as shall be specified by like notice):

       

      
        
          
            
              
                
                  
                    
                      
                        	 
      	 
      If
      to the Board or the Company, to:
	 
      	 
      	 
      
	 
      	 
      	
                                Otelco
      Inc.

                                505
      Third Avenue East

                                Oneonta,
      Alabama 35121

                                Attention:
      Curtis L. Garner, Jr.

                                Telephone
      No: (205) 625-3571

                                Facsimile
      No: (205) 625-3528

                              
	 
      	 
      	 
      
	 
      	with
      a copy to:
	 
      	 
      	 
      
	 
      	 
      	
                                Dorsey
      & Whitney LLP

                                250
      Park Avenue

                                New
      York, New York 10177

                                Attention:
      Steven Khadavi, Esq.

                                Telephone
      No: (212) 415-9376

                                Facsimile
      No: (212) 953-7201

                              
	 
      	 
      	 
      
	 
      	If
      to the Employee to:
	 
      	 
      	 
      
	 
      	 
      	
                                Robert
      Souza

                                12
      Colonial Drive

                                Durham,
      Maine 04222

                                Telephone
      No: (207) 353-7395

                                Facsimile
      No:

                              

                      

                    

                  

                

              

            

          

        

      

       

      or to
such other address as the party to whom such notice or other communication is to
be given may have furnished to each other party in writing in accordance
herewith. Any such notice or communication shall be deemed to have been received
(i) when delivered, if personally delivered or transmitted by electronic mail,
with receipt acknowledgment by the recipient by return electronic mail, (ii)
when sent, if sent by facsimile on a Business Day during normal business hours
(or, if not sent on a Business Day during normal business hours, on the next
Business Day after the date sent by facsimile), (iii) on the next Business Day
after dispatch, if sent by nationally recognized, overnight courier guaranteeing
next Business Day delivery and (iv) on the fifth (5th) Business Day following
the date on which the piece of mail containing such communication is posted, if
sent by mail.

       

      
        
          
          

        

        
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      (j)           Descriptive Headings.
The descriptive headings of this Agreement are inserted for convenience only and
do not constitute a part of this Agreement.

       

      (k)           Construction. Where
specific language is used to clarify by example a general statement contained
herein, such specific language shall not be deemed to modify, limit or restrict
in any manner the construction of the general statement to which it relates. The
language used in this Agreement shall be deemed to be the language chosen by the
parties to express their mutual intent, and no rule of strict construction shall
be applied against any party.

       

      (l)           Nouns and Pronouns.
Whenever the context may require, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns and pronouns shall include the plural and vice-versa.

       

      [Signature
page follows]

       

      
        
          
          

        

        
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      IN WITNESS WHEREOF, the
parties hereto have executed this Amended and Restated Employment Agreement as
of the date first written above.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 	

                                              OTELCO
      INC.

                                            
	 	 	 
	 	 	 
	 	 	 
	 	
                                              By:

                                            	
                                              
                                                /s/
      Curtis L. Garner, Jr.

                                              

                                            
	 	 
      	
                                              Name:
      Curtis L. Garner, Jr.

                                              Title:   Chief
      Financial Officer

                                            
	 	 
      	 
      
	 	 
      	 
      
	 	

                                              EMPLOYEE

                                            
	 	 	 
	 	 	 
	 	 
      	
                                              
                                                /s/
      Robert Souza

                                              

                                            
	 	 
      	
                                              Robert
      SouzaAdditional Facility Q Accession Agreement

 Exhibit 4.3 
 €70,000,000 ADDITIONAL FACILITY Q ACCESSION AGREEMENT 
  

	To:	Toronto Dominion (Texas) LLC as Facility Agent and TD Bank Europe Limited as Security Agent 

  

	From: 	The banks and financial institutions listed in Schedule 1 to this Agreement (the Additional Facility Q Lenders) 

 Date: 27 April 2009 
 UPC Broadband
Holding B.V. (formerly known as UPC Distribution Holding B.V) - €1,072,000,000 Term Credit Agreement dated 16 January 2004 as amended from time to time (the Credit Agreement) 
  

	1.	In this Agreement: 

 Additional Facility L Lender
means each of the lenders under Facility L. 
 Facility L means the €830,000,000 redrawable term loan facility made available
under the Additional Facility Accession Agreement dated 3 July 2006. 
 Facility L1 Interest Period means the Interest Period
currently selected (as at the date of this Agreement) in respect of the outstanding €385,810,397.55 Advance (the Facility L1 Advance) under Facility L. 
 Facility L2 Interest Period means the Interest period currently selected (as at the date of this Agreement) in respect of the outstanding €444,189,602.45 Advance (the Facility L2 Advance) under
Facility L. 
 Facility Q means the €70,000,000 redrawable term loan facility made available under this Agreement. 
 Facility Q Commitment means, in relation to an Additional Facility Q Lender, the amount in Euros set opposite its name under the heading
“Facility Q Commitment” in Schedule 1 to the counterpart of this Agreement executed by that Additional Facility Q Lender, to the extent not cancelled, transferred, or reduced under the Credit Agreement. 
 Facility Q1 Advance means the €32,538,226.30 Advance to be drawn on the Effective Date in accordance with paragraph 12 below. 
 Facility Q2 Advance means the €37,461,773.70 Advance to be drawn on the Effective Date in accordance with paragraph 12 below. 
 Majority Facility Q Lenders means Additional Facility Q Lenders the aggregate of whose
Facility Q Commitments exceeds 662/3 per
cent. of the aggregate of Facility Q Commitments of all Additional Facility Q Lenders. 
 Total Additional Facility Q Commitment means
the aggregate for the time being of the Additional Facility Commitments of each Additional Facility Q Lender under Facility Q. 
  

	2.	Unless otherwise defined in this Agreement, terms defined in the Credit Agreement shall have the same meaning in this Agreement and a reference to a Clause is a reference to a
Clause of the Credit Agreement. The principles of construction set out in Clause 1.2 (Construction) of the Credit Agreement apply to this Agreement as though they were set out in full in this Agreement. 

	3.	We refer to Clause 2.2 (Additional Facilities) of the Credit Agreement. 

  

	4.	This Agreement will take effect on the date on which the Facility Agent notifies UPC Broadband and the Additional Facility Q Lenders that it has received the documents and evidence
set out in Schedule 2 to this Agreement, in each case in form and substance satisfactory to it or, as the case may be, the requirement to provide any of such documents or evidence has been waived by the Majority Facility Q Lenders and in the case of
the evidence specified at (b) of paragraph 4 (Other documents) of Schedule 2, by all the Facility Q Lenders (the Effective Date). 

  

	5.	We, the Additional Facility Q Lenders, agree: 

  

	 	(a)	to become party to and to be bound by the terms of the Credit Agreement as Lenders in accordance with Clause 2.2 (Additional Facilities) of the Credit Agreement; and

  

	 	(b)	to become party to the Security Deed as Lenders and to observe, perform and be bound by the terms and provisions of the Security Deed in the capacity of Lenders in accordance with
Clause 9.3 (Transfers by Lenders) of the Security Deed. 

  

	6.	On the Effective date, each Additional Facility Q Lender declares and represents to the Finance Parties and UPC Broadband that: 

  

	 	(a)	it is a Professional Market Party; and 

  

	 	(b)	it acknowledges that, as a consequence, it has no benefit from the (creditor) protection under the Dutch Banking Act for non-professional Market Parties. 

 

	7.	The Additional Facility Commitment in relation to an Additional Facility Q Lender (for the purpose of the definition of Additional Facility Commitment in Clause 1.1 (Definitions) of
the Credit Agreement) is its Facility Q Commitment. 

  

	8.	The Availability Period for Facility Q shall be the period from and including the Effective Date up to and including the date falling one month before the Final Maturity Date in
respect of Facility Q. 

  

	9.	Any interest due in relation to Facility Q will be payable on the last day of each Interest Period in accordance with Clause 8 (Interest) of the Credit Agreement.

  

	10.	Facility Q shall comprise a committed term loan facility which shall (subject to paragraph 11 below) be capable of being reborrowed in relation to any sums that are prepaid in
accordance with Clause 7.10(d) (Miscellaneous provision) of the Credit Agreement. 

  

	11.	UPC Broadband shall not deliver a Request in relation to Facility Q if as a result of the proposed Request more than 10 Advances under Facility Q would be outstanding.

  

	12.	The first two Advances to be drawn under this Facility Q shall be drawn on the same date (the First Utilisation Date), being the Effective Date and shall be the Facility Q1
Advance and the Facility Q2 Advance respectively. 

	13.	(a)   The first Interest Period to apply to each of the Facility Q1 Advance and the Facility Q2 Advance will be a period equal to
        the period running from the First Utilisation Date up to and including: 

  

	 	(i)	in the case of the Facility Q1 Advance, the last day of the Facility L1 Interest Period; and 

  

	 	(ii)	in the case of the Facility Q2 Advance, the last day of the Facility L2 Interest Period. 

            (b)   In respect of the first Interest Period only: 
  

	 	(i)	in the case of the Facility Q1 Advance, EURIBOR shall mean the EURIBOR rate as determined in respect of the Facility L1 Interest Period; and 

  

	 	(ii)	in the case of the Facility Q2 Advance, EURIBOR shall mean the EURIBOR rate as determined in respect of the Facility L2 Interest Period. 

  

	14.	Advances under Facility Q shall be used for general corporate purposes and working capital purposes, including the repayment or prepayment of existing indebtedness.

  

	15.	The Final Maturity Date in respect of this Facility Q will be the earlier of: 

  

	 	(a)	31 July 2014; and 

  

	 	(b)	if by 17 October 2013 (the Relevant Date) being the date falling 90 days prior to the date on which the UPC Holding B.V. issued bonds due 2014 (the Bonds) fall
due, those bonds have not been repaid, redeemed or refinanced, the Relevant Date. 

  

	16.	The outstanding Advances under Facility Q will be repaid in full on the Final Maturity Date. 

  

	17.	The Margin in relation to Facility Q is 2.75 per cent. per annum. 

  

	18.	The Borrower in relation to Facility Q is UPC Broadband. 

  

	19.	The Borrower shall pay to the Facility Agent for distribution to each Additional Facility Q Lender in accordance with Clause 20.1(b) (Commitment fee) of the Credit Agreement a
commitment fee in an amount equal to 0.75 per cent. per annum of the undrawn uncancelled portion of the Total Additional Facility Q Commitment. Such commitment fee shall be calculated and shall accrue on a daily basis and shall be payable on
the Effective Date and thereafter quarterly in arrears. 

  

	20.	(a)   Provided that any upsizing of Facility Q permitted under this paragraph will not breach any term of the Credit Agreement,
        Facility Q may be upsized by any amount, by the signing of one or more further Additional Facility Q Accession         Agreements, that specify (along with the
other terms specified therein) UPC Broadband as the sole Borrower and which         specify Additional Facility Q Commitments denominated in Euros, to be drawn in Euros, with the same Final Maturity
        Date and Margin as specified in this Additional Facility Q Accession Agreement. 

  

	 	(b)	For the purposes of this paragraph 20, unless otherwise specified, references to Additional Facility Q Lenders and Facility Q Advances shall include Lenders and Advances made under
any such further Additional Facility Q Accession Agreement. 

	 	(c)	If the Borrower so requests, an Interest Period for a Facility Q Advance under any other Additional Facility Q Accession Agreement will end on the same day as the current Interest
Period for any other Facility Q Advance denominated in the same currency as that Facility Q Advance. On the last day of those Interest Periods, those Facility Q Advances will be consolidated and treated as one Facility Q Advance.

  

	21.	Each of UPC Broadband and UPC Financing confirms, on behalf of themselves and each other Obligor that the representations and warranties set out in Clause 15 (Representations and
Warranties) of the Credit Agreement (with the exception of Clauses 15.6(a) (Consents), 15.10 (Financial condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency proceedings), 15.15 (Tax liabilities), 15.16 (Ownership of assets),
15.18 (Works Council), 15.19 (Borrower Group Structure), 15.20 (ERISA), 15.24 (UPC Financing) and 15.25 (Dutch Banking Act)) are true and correct as if made at the Effective Date with reference to the facts and circumstances then existing, and as if
each reference to the Finance Documents includes a reference to this Agreement. 

  

	22.	UPC Broadband further represents and warrants on the Effective Date that the execution and delivery by it of this Agreement and the performance of the transactions contemplated by
this Agreement will not violate any agreement or instrument to which UPC Holding is a party or binding upon UPC Holding or any member of the Borrower Group or any assets of UPC Holding or any member of the Borrower Group’s assets, where such
violation would or is reasonably likely to have a Material Adverse Effect. 

  

	23.	Each Additional Facility Q Lender confirms to each Finance Party that: 

  

	 	(a)	it has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in
the Credit Agreement and has not relied on any information provided to it by a Finance Party in connection with any Finance Document; and 

  

	 	(b)	it will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit
Agreement or any Additional Facility Commitment is in force. 

  

	24.	Each Additional Facility Q Lender agrees to waive the notice period in respect of drawdown requests under Clause 5.1 (Delivery of Request) of the Credit Agreement in respect of the
Facility Q1 Advance and the Facility Q2 Advance only. 

  

	25.	The Facility Office and address for notices of each Additional Facility Q Lender for the purposes of Clause 32.2 (Addresses for notices) of the Credit Agreement will be that
notified by each Additional Facility Q Lender to the Facility Agent. 

  

	26.	This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law. 

  

	27.	This Agreement may be executed in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all counterparts shall together
constitute one and the same instrument. Delivery of an executed counterpart signature page of this Agreement by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Agreement.

 SCHEDULE 1 
 ADDITIONAL FACILITY Q LENDERS AND COMMITMENTS 
  

			
	 Additional Facility Q Lender
	  	Facility Q Commitment
(€)
	 Fortis Bank (Nederland) N.V.
	  	35,000,000
	 Société Générale
	  	35,000,000
		  	 
	 Total
	  	70,000,000
		  	 

 SCHEDULE 2 
 CONDITIONS PRECEDENT DOCUMENTS 
  

	1.	Constitutional Documents 

  

	(a)	A copy of the constitutional documents of each Obligor (other than UPC Financing) and the partnership agreement of UPC Financing or, if the Facility Agent already has a copy, a
certificate of an authorised signatory of the relevant Obligor confirming that the copy in the Facility Agent’s possession is still correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

  

	(b)	An extract of the registration of each Obligor established in the Netherlands in the trade register of the Dutch Chamber of Commerce. 

  

	2.	Authorisations 

  

	(a)	A copy of a resolution of the board of managing and, to the extent applicable, board of supervisory directors (or equivalent) and, to the extent that a shareholders’ resolution
is required, a copy of the shareholders’ resolution of each Obligor: 

  

	 	(i)	approving the terms of and the transactions contemplated by this Agreement and (in the case of UPC Broadband) resolving that it execute the same (and, in the case of the Guarantors
and the Charging Entities (as defined in the Security Deed) resolving that it execute the confirmation described at paragraph 4(a) below; and 

  

	 	(ii)	(in the case of UPC Broadband) authorising the issuance of a power of attorney to a specified person or persons to execute this Agreement on its behalf and (in the case of the
Guarantors and the Charging Entities (as defined in the Security Deed)) authorising the issuance of a power of attorney to a specified person or persons to execute the confirmation described in paragraph 4(a) below. 

  

	(b)	A specimen of the signature of each person authorised pursuant to its constitutional documents or to the power of attorney referred to in paragraph (a) above to sign this
Agreement or the confirmation described in paragraph 4(a) below (as appropriate). 

  

	(c)	A certificate of an authorised signatory of UPC Broadband, each Guarantor and each Charging Entity certifying that each copy document specified in this Schedule and supplied by UPC
Broadband, each Guarantor and each Charging Entity is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. 

  

	(d)	A copy of any other authorisation or other document, opinion or assurance which the Facility Agent has notified UPC Broadband is necessary in connection with the entry into and
performance of, and the transactions contemplated by, this Agreement or for the validity and enforceability of this Agreement. 

  

	3.	Legal opinions 

  

	(a)	A legal opinion of Allen & Overy LLP, English legal advisers to the Facility Agent, addressed to the Finance Parties. 

  

	(b)	A legal opinion of Allen & Overy LLP, Dutch legal advisers to the Facility Agent, addressed to the Finance Parties. 

	4.	Other documents 

  

	(a)	Confirmation (in writing) from (i) each of the Guarantors that its obligations under Clause 14 (Guarantee) of the Credit Agreement and (ii) each of the Charging Entities
(as defined in the Security Deed) that the Security Interests granted to the Beneficiaries pursuant to the Security Documents and its obligations under the Finance Documents, shall continue unaffected and that such obligations extend to the Total
Commitments as increased by the addition of Facility Q and that such obligations shall be owed to each Finance Party including the Additional Facility Q Lenders. 

  

	(b)	In respect of each Additional Facility Q Lender, a Novation Certificate transferring each such lender’s drawn Facility L commitment to Liberty Global Europe BV, duly executed
by each party thereto. 

  

	(c)	The settlement side letter between, amongst others, UPC Broadband, the Additional Facility Q Lenders and the Facility Agent, dated at or around the date of this Agreement.

 SIGNATORIES 
 TORONTO DOMINION (TEXAS) LLC as Facility Agent 

			
		
	By:	 	AUTHORISED SIGNATORY

  

			
	TD BANK EUROPE LIMITED as Security Agent
		
	By:	 	AUTHORISED SIGNATORY

			
	UPC BROADBAND HOLDING B.V.
		
	By:	 	AUTHORISED SIGNATORY

  

			
	UPC FINANCING PARTNERSHIP
		
	By:	 	AUTHORISED SIGNATORY

			
	ADDITIONAL FACILITY Q LENDERS
	
	FORTIS BANK (NEDERLAND) N.V.
		
	By:	 	AUTHORISED SIGNATORY

  

			
	SOCIÉTÉ GÉNÉRALE
		
	By:	 	AUTHORISED SIGNATORY

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