Document:

exv10w1xby

 

Exhibit 10.1 (b)

FIRST AMENDMENT

          FIRST AMENDMENT, dated as of October 18, 2005 (this “Amendment”), with respect to the
Credit Agreement, dated as of March 25, 2004 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among Rural Cellular Corporation, a Minnesota
corporation (the “Borrower”), the lenders from time to time parties thereto (the
“Lenders”), Lehman Commercial Paper Inc., as administrative agent (in such capacity, the
“Administrative Agent”), and Bank of America, N.A. as documentation agent.

WITNESSETH:

          WHEREAS, capitalized terms undefined herein shall have the meaning ascribed to them in the Credit
Agreement; and

          WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make certain loans and other
extensions of credit to the Borrower; and

          WHEREAS, the Borrower wishes to be able to make a one-time cash dividend payment on certain
Existing Preferred Stock in accordance with Section 6.08 of the Credit Agreement and, in connection
therewith, has requested that certain definitions used in the financial covenants contained in the
Credit Agreement be amended in the manner provided for in this Amendment;

          WHEREAS, the Borrower wishes to be able to incur additional Indebtedness with the same maturity as
the Existing Senior Unsecured Notes;

          NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in consideration of the premises contained herein, the parties hereto hereby
agree as follows:

SECTION I AMENDMENT

     1.1. Amendments to Section 1.01. (a) The following defined term is hereby inserted in
appropriate alphabetical order:

     “Permitted One-Time Cash Dividend” means a one-time cash dividend payment on the 11 3/8%
Senior Exchangeable Preferred Stock of the Borrower in an aggregate amount not to exceed $18
million in payment of previously accrued dividends (including any interest accrued on such
dividends) thereon, provided that such payment is made on or before November 14, 2005 and that such
payment is otherwise permitted to be made as a Restricted Payment pursuant to Section 6.08.

          (b) The following defined terms are hereby amended and restated in their entirety to read as
follows:

     “Cash Interest Expense” means, for any period, (a) Consolidated Interest Expense actually
paid in cash for such period, but excluding (to the extent otherwise included

 

 

2 

therein) any Permitted One-Time Cash Dividend made during such period, minus (b) any
costs, fees and expenses related to the termination of any Hedging Agreement.

     “Qualifying Senior Indebtedness” means senior debt issued by the Borrower which (i) is not
secured or guaranteed, (ii) does not mature or require scheduled payments of principal prior to the
date that is six months after the Maturity Date (except that up to $50 million of such senior debt
may have the same maturity date as that of the Existing Senior Unsecured Notes), (iii) has terms
and conditions (other than those relating to interest rates, maturity and call and make-whole
provisions that are consistent with market terms for such type of debt as of the time of its
issuance) which, taken as a whole, are not materially less favorable to the Borrower than those of
the Existing Senior Unsecured Notes, and (iv) is not convertible into any Indebtedness or Capital
Stock other than Qualifying Senior Indebtedness, Qualifying Subordinated Indebtedness or Qualified
Capital Stock.

SECTION II MISCELLANEOUS

     2.1. Conditions to Effectiveness of Amendment. This Amendment shall become effective as of
the date first set forth above upon satisfaction of the following conditions:

     (a) the Administrative Agent shall have received counterparts of this Amendment duly
executed and delivered by the Borrower, the Guarantors, the Administrative Agent and the
Required Lenders; and

     (b) the Administrative Agent shall have received, for the account of each Lender
executing this Amendment on or prior to October 18, 2005, an amendment fee equal to 0.05%
of each such executing Lender’s Revolving Commitment then in effect (in respect of each
such Lender, an “Amendment Fee”).

     2.2. Representations and Warranties. The Borrower represents and warrants to each Lender
that as of the effective date of this Amendment: (a) this Amendment constitutes the legal,
valid and binding obligation of the Borrower, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law; (b) no Default or Event of Default
shall have occurred and be continuing as of the date hereof; and (c) the Guarantors signing
this Amendment include each Person who is a Subsidiary of the Borrower as of the date hereof.

     2.3. Counterparts. This Amendment may be executed by one or more of the parties to this
Amendment on any number of separate counterparts (including by facsimile transmission), and
all of said counterparts taken together shall be deemed to constitute one and the same
instrument.

     2.4. Continuing Effect; No Other Amendments. Except to the extent the Credit Agreement is
expressly modified hereby, all of the terms and provisions of the Credit Agreement and the
other Loan Documents are and shall remain in full force and effect. This Amendment shall
constitute a Loan Document.

 

 

3 

     2.5. Payment of Expenses. The Borrower agrees to pay and reimburse the Administrative
Agent for all of its out-of-pocket costs and reasonable expenses incurred to date in
connection with this Amendment and the other Loan Documents, including, without limitation,
the reasonable fees and disbursements of legal counsel to the Administrative Agent.

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

[REST OF PAGE INTENTIONALLY LEFT BLANK]

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their respective proper and duly authorized officers as of the day and year first
above written.

	 	 	 	 	 
	 	RURAL CELLULAR CORPORATION

 	 
	 	By:  	/s/ Suzanne Allen
 	 
	 	 	Name:  	SUZANNE ALLEN 	 
	 	 	Title:  	TREASURER 	 
	 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER INC.,

Individually and as Administrative Agent

 	 
	 	By:  	/s/ Diane Albanese
 	 
	 	 	Name:  	DIANE ALBANESE 	 
	 	 	Title:  	AUTHORIZED SIGNATORY 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

Individually and as Documentation Agent

 	 
	 	By:  	/s/ John W. Woodiel III
 	 
	 	 	Name:  	JOHN W. WOODIEL III 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SIGNATURE PAGE TO THE

FIRST AMENDMENT TO THE

RURAL CELLULAR CREDIT AGREEMENT

Name of Institution: Wells Fargo Bank, National Association

 	 
	 	By:  	/s/ Tracy L. Moosbrugger
 	 
	 	 	Name:  	Tracy L. Moosbrugger 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	Name of Institution: National City Bank

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	
COÖPERATIEVE CENTRALE 

RAIFFEISEN-BOERENLEEN BANK

B.A., “RABOBANK INTERNATIONAL”,

NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/ Michael R. Phelan
 	 
					
	 	Name: 	Michael R. Phelan  	 	 
	 	Title: 	Executive Director  	 	 
	 
	 
	 	By:  	                        /s/ Brett Delfino
 	 
	 	Name:	Brett Delfino  	 	 
	 	Title:	Executive Director  	 	 
	 
	 
	 	
Name of Institution: CoBANK, ACB 

 	 
	 	By:  	/s/ John W. Donner
 	 
	 	 	Name: John W. Donner	 	 
	 	 	Title:   Vice President	 	 
	 
	 
	 	
Name of Institution: CIT Lending Services Corporation

 	 
	 	By:  	/s/ Michael V. Monahan
 	 
	 	 	Name: Michael V. Monahan	 	 
	 	 	Title:   Vice President	 	 

 

 

	 	 	 	 	 

          THE UNDERSIGNED GUARANTORS HEREBY CONSENT AND AGREE TO THE FOREGOING AMENDMENT AS OF THE
DATE HEREOF.

	 	 	 	 	 
	 	RCC MINNESOTA, INC.

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC HOLDINGS, INC. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BMCT EQUIPMENT COMPANY L.L.C. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	FERRY EQUIPMENT COMPANY L.L.C. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC PAGING, INC. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RGI GROUP, INC. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	TLA SPECTRUM, LLC

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC NETWORK, INC. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC TRANSPORT, INC. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC ATLANTIC LONG DISTANCE, INC. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC ATLANTIC, INC. 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	ALEXANDRIA INDEMNITY CORPORATION 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC ATLANTIC LICENSES, LLC 

 	 
	 	By:  	/s/ Wesley E. Schultz
 	 
	 	 	Name:  	Wesley E. Schultz 	 
	 	 	Title:exv10w1xcy

 

Exhibit 10.1(c)

SECOND AMENDMENT TO THE CREDIT AGREEMENT

     SECOND AMENDMENT, dated as of May 22, 2006 (this “Amendment”), with respect to the
Credit Agreement, dated as of March 25, 2004 (as amended by that certain First Amendment, dated as
of October 18, 2005, and as may be further amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among Rural Cellular Corporation, a Minnesota corporation
(the “Borrower”), the lenders from time to time parties thereto (the “Lenders”),
Lehman Commercial Paper Inc., as administrative agent (in such capacity, the “Administrative
Agent”), and Bank of America, N.A. as documentation agent.

W I T N E S S E T H:

     WHEREAS, capitalized terms undefined herein shall have the meaning ascribed to them in the
Credit Agreement; and

     WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make certain loans and
other extensions of credit to the Borrower; and

     WHEREAS, the Borrower wishes to be able to exclude from the calculation of “Cash Interest
Expense” cash dividend payments of no more than four (4) declared or previously accrued dividends
(including any interest accrued on such dividends) on certain Existing Preferred Stock of the
Borrower made from time to time during any Reference Period in accordance with Section 6.08 of the
Credit Agreement and, in connection therewith, has requested that certain definitions used in the
financial covenants contained in the Credit Agreement be amended in the manner provided for in this
Amendment; and

     WHEREAS, the Borrower has requested a reduction in the interest rates applicable to the Loans
and, in connection therewith, has requested that the definition of “Applicable Margin” contained in
the Credit Agreement be amended in the manner provided for in this Amendment; and

     WHEREAS, the Borrower has requested a reduction of the minimum interest coverage ratio
required by the Credit Agreement and, in connection therewith, has requested that the definition of
“Pro Forma Compliance” contained in the Credit Agreement and Section 6.12(c) of the Credit
Agreement be amended in the manner provided for in this Amendment;

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in consideration of the premises contained herein, the parties hereto hereby
agree as follows:

SECTION I   AMENDMENT

     1.1.   Amendments to Section 1.01. (a) The following defined term is hereby inserted
in appropriate alphabetical order:

     “Excluded Cash Dividends” means cash dividend payments on the 11 3/8% Senior
Exchangeable Preferred Stock of the Borrower made by the Borrower from time

 

 

to time in payment of declared or previously accrued dividends (including any interest
accrued on such dividends) thereon, provided that (i) cash dividend payments of no more than
four (4) such declared or previously accrued dividends (including any interest accrued on
such dividends) made by the Borrower during any Reference Period shall constitute “Excluded
Cash Dividends” hereunder and (ii) each such payment is permitted to be made as a Restricted
Payment pursuant to Section 6.08.

     (b) The following defined terms are hereby amended and restated in their entirety to
read as follows:

     “Applicable Margin” means, for any day, with respect to any ABR Loan (but
subject to Section 2.12(a) for any Swing Line Loan) or Eurodollar Loan, as the case may be,
the applicable rate per annum set forth below under the caption “ABR Spread” or “Eurodollar
Spread”, as the case may be, based upon the Applicable Ratio determined as set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	ABR	 	 	Eurodollar	 
	Applicable Ratio	 	Spread	 	 	Spread	 
	Category 1
	 	 	 	 	 	 	 	 
	Ratio is greater than 1.75 to 1.00
	 	 	1.25	%	 	 	2.25	%
	 
	 	 	 	 	 	 	 	 
	Category 2
	 	 	 	 	 	 	 	 
	Ratio is less than or equal to
1.75 to 1.00
	 	 	1.00	%	 	 	2.00	%

     For purposes of the foregoing, (i) the Applicable Ratio shall be determined as of
the end of each fiscal quarter of the Borrower’s fiscal year based upon the Borrower’s
consolidated financial statements delivered pursuant to Section 5.01(a) or (b) and (ii) each
change in the Applicable Margin resulting from a change in the Applicable Ratio shall be
effective during the period commencing on and including the date that is three Business Days
after the date of delivery to the Administrative Agent of such consolidated financial
statements indicating such change and ending on the date immediately preceding the effective
date of the next such change; provided that the Applicable Ratio shall be deemed to
be (A) 2.00% in the case of the “ABR Spread” and 3.00% in the case of the “Eurodollar
Spread”, at the option of the Administrative Agent or at the request of the Required
Lenders, at any time that an Event of Default has occurred and is continuing and (B) in
Category 1, at the option of the Administrative Agent or at the request of the Required
Lenders, if the Borrower fails to deliver the consolidated financial statements required to
be delivered by it pursuant to Section 5.01(a) or (b), during the period from the expiration
of the time for delivery thereof until the tenth Business Day after such consolidated
financial statements are delivered.

     “Cash Interest Expense” means, for any period, (a) Consolidated Interest
Expense actually paid in cash for such period, but excluding (to the extent otherwise
included therein) any Permitted One-Time Cash Dividend and any Excluded Cash Dividends made
during such period, minus (b) any costs, fees and expenses related to the
termination of any Hedging Agreement.

 

 

     “Pro Forma Compliance” means, on the Reference Date with respect to any Pro
Forma Event, that all of the following ratio tests have been met on such Reference Date on a
pro forma basis after giving effect to such Pro Forma Event (or, in the case of a Pro Forma
Event consisting of a New Extension of Revolver Credit, that the first two of the following
ratio tests have been so met):

     (1) the ratio of (x) Senior Secured Debt outstanding on such Reference Date (after
giving pro forma effect to the Incurrence or discharge of all Indebtedness Incurred or
discharged during the Related Measurement Period) to (y) Adjusted EBITDA for the Reference
Period for such Pro Forma Event is not greater than 2.85 to 1.00;

     (2) the ratio of (x) Total Debt outstanding on such Reference Date (after giving pro
forma effect to the Incurrence or discharge of all Indebtedness Incurred or discharged
during the Related Measurement Period) to (y) Adjusted EBITDA for the Reference Period for
such Pro Forma Event is not greater than 6.75 to 1.00; and

     (3) the ratio of (x) Adjusted EBITDA for the Reference Period for such Pro Forma Event
to (y) Adjusted Cash Interest Expense for the Reference Period for such Pro Forma Event is
not less than 1.50 to 1.00;

     provided, that for purposes of any such computation, the Pro Forma Event giving
rise to the need to make such computation (other than a Pro Forma Event consisting of a New
Extension of Revolver Credit) will be assumed to have occurred (on a pro forma basis) on the
first day of the Reference Period for such Pro Forma Event.

     1.2.   Amendments to Section 6.12. Section 6.12(c) of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

     (c) Interest Coverage Ratio. The Borrower will not permit the ratio as of the
last day of any such quarter of (x) Adjusted EBITDA for the Reference Period ending on such
day to (y) Adjusted Cash Interest Expense for such Reference Period to be less than 1.50 to
1.00.

SECTION II   MISCELLANEOUS

     2.1.   Conditions to Effectiveness of Amendment. This Amendment shall become
effective as of the date first set forth above upon satisfaction of the following conditions:

     (a) the Administrative Agent shall have received (i) counterparts of this Amendment
duly executed and delivered by the Borrower, the Guarantors and the Administrative Agent and
(ii) in the case of the Lenders, either (x) counterparts of this Amendment that, when taken
together, bear the signatures of all Lenders or (y) (A) counterparts of this Amendment that,
when taken together, bear the signatures of the Required Lenders and all Lenders other than
each Lender not consenting to and approving this Amendment and (B) evidence satisfactory to
the Administrative Agent that (i) the Revolving Commitment of each Lender not consenting to
and approving this Amendment shall terminate upon the effectiveness of this Amendment and
(ii) at the time

 

 

this Amendment becomes effective, each Lender not consenting to and approving this
Amendment receives payment in full of the principal of and interest accrued on each Loan
made by it and all other amounts owing to it or accrued for its account under the Credit
Agreement, in each case, pursuant to Section 9.02(b) of the Credit Agreement; and

     (b) the Administrative Agent shall have received, for the account of each Lender
consenting to this Amendment, an amendment fee equal to 0.125% of each such consenting
Lender’s Revolving Commitment then in effect.

     2.2.   Representations and Warranties. The Borrower represents and warrants to each
Lender that as of the effective date of this Amendment: (a) this Amendment constitutes the legal,
valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law; (b) no Default or Event of Default shall have occurred and be
continuing as of the date hereof; and (c) the Guarantors signing this Amendment include each Person
who is a Subsidiary of the Borrower as of the date hereof.

     2.3.   Counterparts. This Amendment may be executed by one or more of the parties to
this Amendment on any number of separate counterparts (including by facsimile transmission), and
all of said counterparts taken together shall be deemed to constitute one and the same instrument.

     2.4.   Continuing Effect; No Other Amendments. Except to the extent the Credit
Agreement is expressly modified hereby, all of the terms and provisions of the Credit Agreement and
the other Loan Documents are and shall remain in full force and effect. This Amendment shall
constitute a Loan Document.

     2.5.   Payment of Expenses. The Borrower agrees to pay and reimburse the
Administrative Agent for all of its out-of-pocket costs and reasonable expenses incurred to date in
connection with this Amendment and the other Loan Documents, including, without limitation, the
reasonable fees and disbursements of legal counsel to the Administrative Agent.

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

[REST OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their respective proper and duly authorized officers as of the day and year first
above written.

	 	 	 	 	 
	 	RURAL CELLULAR CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER INC.,

Individually and as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

	 	 	 	 	 
	 	SIGNATURE PAGE TO THE

SECOND AMENDMENT TO THE

RURAL CELLULAR CREDIT AGREEMENT

Name of Institution:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

     THE UNDERSIGNED GUARANTORS HEREBY CONSENT AND AGREE TO THE FOREGOING AMENDMENT AS OF THE DATE
HEREOF.

	 	 	 	 	 
	 	RCC MINNESOTA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	TLA SPECTRUM, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC TRANSPORT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC ATLANTIC, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	ALEXANDRIA INDEMNITY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	RCC ATLANTIC LICENSES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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