Document:

Exhibit
10.24

 

 

December 21, 2009

 

Mr. Michael F. Edl

1177 Bishop Street

Honolulu, HI 96813

 

Dear Michael:

 

You and Hawaiian Telcom
Communications, Inc. (the “Company”) signed an employment agreement
dated July 21, 2008 (the “Employment Agreement”).  In order to provide clarity regarding the
parties’ intent, you and the Company have agreed to modify the Employment
Agreement as set forth herein. We note in particular that although we believe  the current Good Reason provisions in  Sections 1(j) and 1(k) of the
Employment Agreement comply with Section 409A of the Internal Revenue Code
of 1986, as amended, out of an abundance of caution we have agreed to modify
those provisions.  Except as otherwise
amended in this letter agreement, the Employment Agreement remains in full
force and effect.

 

1.     Section 1(h) of
the Employment Agreement is hereby amended and restated in its entirety as
follows:

 

(h)   “Disability” shall
mean the absence of the Executive from the Executive’s duties to the Company on
a full-time basis for a total of six months during any 12-month period as a
result of incapacity due to mental or physical illness, which determination is
made by a physician selected by the Company and acceptable to the Executive or
the Executive’s legal representative (such agreement as to acceptability not to
be withheld unreasonably). 
Notwithstanding the foregoing, a Disability shall not be “incurred”
hereunder until, at the earliest, the last day of the sixth month of such
absence and in no event shall Executive be determined to be Disabled unless
such physician determines that such illness can be expected to result in death
or can be expected to last for a continuous period of not less than 12 months.

 

2.     Sections 1(j) and
1(k) of the Employment Agreement are hereby amended and restated in their
entirety as follows:

 

(j)    The Executive shall have “Good
Reason” to resign his employment upon the occurrence of any of the
following:

 

1.     a material diminution in
Executive’s or the Chief Executive Officer’s authority, duties or
responsibilities;

 

 

2.     the Company’s material
breach of this Agreement (including, without limitation, the Company’s material
failure to provide payments or benefits required under this Agreement); or

 

3.     the relocation of the
Executive’s principal office, without his consent, to a location that is in
excess of 100 miles from Honolulu, Hawaii.

 

(k)   The Executive may not resign
his employment for Good Reason unless:

 

1.     the Executive provides the
Company with at least 30 days prior notice of his intent to resign for Good
Reason (such notice to be provided to the Company within 90 days of the initial
act of omission claimed to give rise to Good Reason); and

 

2.     the Company does not remedy
the alleged violation(s) within the 30-day notice period.

 

3.     Section 5
of the Employment Agreement is hereby amended and restated in its entirety as
follows:

 

5.             Severance Payments.

 

(a)           Termination for
Cause or resignation without Good Reason.  If the Executive’s employment shall terminate
pursuant to sections 4(a)(iii) for Cause, or Section 4(a)(vi) without
Good Reason, the Executive shall not be entitled to any severance payment.

 

(b)           Termination
upon death or Disability.  If
the Executive’s employment shall terminate pursuant to Sections 4(a)(i) due
to the Executive’s death, or pursuant to Section 4(a)(ii) due to the
Executive’s Disability, the Company shall pay to the Executive (or the
Executive’s estate):

 

(i)            within 30 days following the
date of death or Disability, as applicable, and otherwise in separate and distinct
equal installment payments in accordance with the Company’s regular payroll
practice at the time of Executive’s death or Disability, an amount equal to the
Annual Base Salary that the Executive would have been entitled to receive if
the Executive had continued his employment for a period of six months following
the date of death or Disability, as applicable; and

 

(ii)           a prorated amount of the
Executive’s annual bonus based on the Company’s year-to-date performance
through the date of death or Disability, as applicable, in relation to the
performance targets set forth in the Bonus Plan (such amount to be determined
in good faith by the Compensation Committee and paid in the calendar year
following the calendar year in which the death or Disability occurs at such
time as bonuses are paid to other executive officers who participate in the
Bonus Plan).

 

2

 

(c)           Termination without Cause or
Resignation for Good Reason.

 

(1)           If the Executive’s
employment shall terminate without Cause pursuant to Section 4(a)(iv) or
for Good Reason pursuant to Section 4(a)(v) (and such
termination constitutes a “separation from service” as defined in Treasury
Regulation 1.409A-1(h) (“Separation”)), the Company shall:

 

(i)            Continue to pay, in separate
and distinct equal installment payments in accordance with normal payroll
practices at the time of the Separation, the Executive’s Annual Base Salary for
the period beginning on the date of Separation and ending on the earliest to
occur of (a) the twelve month anniversary of the date of Separation, (b) the
first date the Executive violates any covenant contained in Section 6,
(c) the fifth (5th) day following the date of Separation in the event the
Company has not received by that date the Executive’s executed general waiver
and release of claims in the Company’s customary form and voluntary waiver of
any review period, (d) the first date of the Executive’s revocation of the
general waiver and release, or (e) the first date of the Executive’s
employment or consultancy (whether as an employee, independent contractor, or
otherwise) with another company based on more than twenty (20) hours per week
(and the Executive hereby agrees to inform the Company immediately upon his
becoming such an employee or consultant with another company); and

 

(ii)           Continued coverage (at the
Company’s expense), for the period set forth in clause (i) above, for the
Executive and any dependents under the Company group health benefit plan in
which the Executive and any dependents were entitled to participate immediately
prior to the date of Separation, excluding Exec-U-Care or similar supplemental
coverage policies for senior executives; and

 

(iii)          Pay you a pro-rated bonus
for the year of Separation, which except for the pro-ration shall be pursuant
to the terms and conditions set forth in the Bonus Plan and shall be paid in
the calendar year following the calendar year in which the Separation occurs at
such time as bonuses are paid to other executive officers who participate
therein.

 

(2)           This Section 5(c)(2) shall
apply only to the extent that any payment under this Agreement constitutes “nonqualified
deferred compensation” for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) and not to payments that
are exempt from Section 409A of the Code (due to, for example, application
of the short term deferral rule or separation pay exceptions).  To the extent any such payment of any amount
constitutes “nonqualified deferred compensation” and the Executive is deemed on
the date of termination to be a “specified employee” within the meaning of Code
Section 409A(a)(2)(B), any amounts to which Executive is entitled under
this Section 5 that constitute “non-qualified deferred compensation” under
Code Section 409A and would otherwise

 

3

 

be payable prior to the
earlier of (i) the 6-month anniversary of the Executive’s Separation and (ii) the
date of the Executive’s death (the “Delay Period”) shall instead be paid
in a lump sum immediately upon (and not before) the expiration of the Delay
Period to the extent such delay is required under Section 409A of the
Code.  Any lump sum payment of delayed
payments under this Section 5(c)(2) shall be paid with interest to
reflect the period of delay, with such interest to accrue at the prime rate in
effect at Citibank, N.A. at the time of the Separation.  Any remaining payments due under the
Agreement shall be paid as otherwise provided herein.  The determination of whether the Executive is
a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i) as
of the time of Separation shall made by the Company in accordance with the
terms of Code Section 409A and applicable guidance thereunder (including
without limitation Treasury Regulation Section 1.409A-1(i) and any
successor provision thereto).

 

In the event the Company
modifies the terms of the severance benefits applicable to Senior Vice
Presidents of the Company, the severance benefits described in this Section 5
will be modified on a consistent basis

 

(d)           Survival. The
termination of employment hereunder shall not impair the rights or obligations
of any party that accrued prior to such termination.

 

This amendment to the
Employment Agreement may be executed in two or more counterparts, each of which
will be deemed an original, but all of which together will constitute one and
the same instrument.  This letter
agreement shall be governed and construed under the internal laws of the State
of Hawaii and may be executed in several counterparts.

 

[remainder of page intentionally left blank]

 

4

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ William Chung

  
	
   

  	
   

  	
  William Chung

  
	
   

  	
   

  	
  VP – Human
  Resources & Labor Relations

  
	
   

  	
   

  	
  December 30, 2009

  
	
   

  	
   

  	
   

  
	
  Agreed and Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Michael F. Edl

  	
   

  	
   

  
	
  Michael F. Edl

  	
   

  	
   

  
	
  December 30, 2009

  	
   

  	
   

  

 

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  Exhibit 10.1    
    

 FOURTH SUPPLEMENTAL INDENTURE  

        SUPPLEMENTAL INDENTURE (this "Fourth Supplemental Indenture"), dated as of
April 1, 2010, among ARES CAPITAL CORPORATION, a corporation duly organized under the laws of the State of Maryland ("Ares Capital"), having its
principal office at 280 Park Avenue, 22nd Floor, Building East, New York, New York 10017, ALLIED CAPITAL CORPORATION, a corporation duly organized and existing under the laws of
the State of Maryland ("Allied Capital"), having its principal office at 1919 Pennsylvania Avenue, N.W., Washington, D.C. 20006,
and The Bank of New York Mellon, a banking corporation duly organized and existing under the laws of the State of New York, as Trustee (the "Trustee").
All capitalized terms used herein shall have the meaning set forth in the Base Indenture (as defined below). 

 
 

  RECITALS OF THE COMPANY    
    

        WHEREAS, Allied Capital and the Trustee executed and delivered an Indenture, dated as
of June 16, 2006 (the "Base Indenture," and as supplemented by the First, Second and Third Supplemental Indentures and this Fourth Supplemental
Indenture, the "Indenture"), to provide for the issuance by Allied Capital from time to time of Allied Capital's unsecured debentures, notes or other
evidences of indebtedness (the "Securities"), to be issued in one or more series as provided in the Indenture. 

        WHEREAS, there is outstanding under the terms of the Indenture the following series of Notes: (1) 6.625% Notes due 2011;
(2) 6.000% Notes due 2012; and (3) 6.875% Notes due 2047; 

        WHEREAS, on October 26, 2009, Allied Capital, Ares Capital and ARCC Odyssey Corp., a Maryland corporation and a wholly owned direct
subsidiary of Ares Capital ("Merger Sub"), entered into an agreement and plan of merger (the
"Agreement") pursuant to which (i) Merger Sub shall, on the terms and subject to the conditions set forth in the Agreement, merge with and into
Allied Capital (the "First Merger"), with Allied Capital as the surviving company in the First Merger, and (ii) immediately after the First Merger, the surviving company shall merge with and
into Ares Capital (the "Second Merger," and together with the First Merger, the "Mergers"), with Ares Capital as the surviving company in the Second Merger; 

        WHEREAS, the Mergers are expected to be consummated on the date hereof; 

        WHEREAS, Section 801 of the Base Indenture provides that in the case of a merger of Allied Capital into another Person, the
successor corporation shall succeed to, and be substituted for, and may exercise every right and power of Allied Capital under the Indenture and shall expressly assume by supplemental indenture the
due and punctual payment of the principal of and any premium and interest on all the Securities and the performance or observance of every covenant of the Indenture on the part of Allied Capital to be
performed or observed; 

        WHEREAS, Section 901(1) of the Base Indenture provides that without the consent of any Holders of the Securities of any series
issued under the Indenture, Allied Capital, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental to the Base
Indenture to evidence the succession of another Person to Allied Capital and the assumption by any such successor of the obligations and covenants of Allied Capital under the Securities and the
Indenture; 

        WHEREAS, this Fourth Supplemental Indenture has been duly authorized by all necessary corporate action on the part of each of Ares Capital
and Allied Capital; and 

        WHEREAS, all things and acts necessary to make this Fourth Supplemental Indenture the legal valid and binding obligation of Ares Capital
and Allied Capital have been done. 

 

        NOW, THEREFORE, in consideration of the premises, Ares Capital, Allied Capital and the Trustee mutually agree as follows for the equal and
proportionate benefit of all Holders of the Securities, as follows: 

 ARTICLE I

ASSUMPTION BY SUCCESSOR CORPORATION  

 SECTION 1.1 Assumption of the Securities.  

        (a)   Ares
Capital hereby represents and warrants that 

          (i)  it
is a corporation organized and existing under the laws of the State of Maryland and the surviving corporation in the Second Merger; and 

         (ii)  the
execution, delivery and performance of this Fourth Supplemental Indenture has been duly authorized by the board of directors of Ares Capital. 

        (b)   Ares
Capital hereby expressly assumes the due and punctual payment of the principal of and premium and interest on all of the Securities of all series in accordance with
the terms of each series, according to their tenor and the due and punctual performance or observance of every covenant of the Indenture, whether to the holders or the Trustee, with respect to each
series or established with respect to such series on the part of Allied Capital to be performed or observed. 

         SECTION 1.2 The Company.    Effective upon the consummation of the Second Merger on the date hereof, the name of the Company, as the
successor
corporation under the Indenture, shall be "Ares Capital Corporation."

        SECTION 1.4 Trustee's Acceptance.    The Trustee hereby accepts this Fourth Supplemental Indenture and agrees to perform the same
under the terms
and conditions set forth in the Indenture. 

 ARTICLE II

MISCELLANEOUS  

         SECTION 2.1 Effect of Supplemental Indenture.    Effective upon the consummation of the Second Merger, the Indenture shall be
supplemented in
accordance herewith, and this Fourth Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Securities heretofore or hereafter authenticated and
delivered under the Indenture shall be bound thereby. 

         SECTION 2.2 Indenture Remains in Full Force and Effect.    Except as supplemented hereby, all provisions in the Indenture shall
remain in full
force and effect. 

         SECTION 2.3 Indenture and Supplemental Indentures Construed Together.    This Fourth Supplemental Indenture is an indenture
supplemental to and
in implementation of the Indenture, and the Indenture and this Fourth Supplemental Indenture shall henceforth be read and construed together. 

         SECTION 2.4 Confirmation and Preservation of Indenture.    The Indenture as supplemented by this Fourth Supplemental Indenture is in
all respects
confirmed and preserved. 

         SECTION 2.5 Conflict with Trust Indenture Act.    If any provision of this Fourth Supplemental Indenture limits, qualifies or
conflicts with any
provision of the Trust Indenture Act (the "TIA") that is required under the TIA to be a part of and govern any provision of this Fourth Supplemental
Indenture, the provision of the TIA shall control. If any provision of this Fourth Supplemental Indenture modifies or excludes any provision of the TIA that may be so modified or excluded, the
provision of the TIA shall be deemed to apply to the Indenture as so modified or to be excluded by this Fourth Supplemental Indenture, as the case may be. 

2

 

         SECTION 2.6 Severability.    In case any provision in this Fourth Supplemental Indenture shall be invalid, illegal or unenforceable,
the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

         SECTION 2.7 Terms Defined in the Indenture.    All capitalized terms not otherwise defined herein shall have the meanings ascribed to
them in the
Indenture. 

         SECTION 2.8 Addresses for Notice, etc., to Ares Capital and Trustee.    Any notice or demand which by any provisions of this Fourth
Supplemental
Indenture or the Indenture is required or permitted to be given or served by the Trustee or by the holders of Securities to or on Ares Capital may be given or served by postage prepaid first class
mail addressed (until another address is filed by Ares Capital with the Trustee) as follows: 

Ares
Capital Corporation

c/o Ares Management LLC

2000 Avenue of the Stars, 12th Floor

Los Angeles, CA 90067

(310) 201-4200

Attention: Michael D. Weiner 

With
a copy to:

Proskauer Rose LLP

2049 Century Park East, 32nd Floor

Los Angeles, CA 90067-3206

(310) 557-2900

Attention: Monica J. Shilling 

        Any
notice, direction, request or demand by any holder of Securities to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in
writing at the principal office of the Trustee, which shall be as follows: 

The
Bank of New York

101 Barclay Street, Floor 8 West

New York, New York 10286

Attention: Corporate Trust Administration 

         SECTION 2.8 Headings.    The Article and Section headings of this Fourth Supplemental Indenture have been inserted for convenience of
reference
only, are not to be considered part of this Fourth Supplemental Indenture and shall in no way modify or restrict any of the terms or provisions hereof. 

         SECTION 2.9 Benefits of Fourth Supplemental Indenture, etc.    Nothing in this Fourth Supplemental Indenture or the Securities,
express or
implied, shall give to any Person, other than the parties hereto and thereto and their successors hereunder and thereunder and the holders of the Securities, any benefit of any legal or equitable
right, remedy or claim under the Indenture, this Fourth Supplemental Indenture or the Securities. 

        SECTION 2.10 Certain Duties and Responsibilities of the Trustee.    In entering into this Fourth Supplemental Indenture, the Trustee
shall be
entitled to the benefit of every provision of the Indenture relating to the conduct or affecting the liability or affording protection to the Trustee, whether or not elsewhere herein so provided. 

         SECTION 2.11 Counterparts.    The parties may sign any number of copies of this Fourth Supplemental Indenture. Each signed copy shall
be an
original, but all of them together represent the same agreement. 

3

 

         SECTION 2.12 Governing Law.    This Fourth Supplemental Indenture shall be governed by, and construed in accordance with, the laws of
the State
of New York but without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby. 

        SECTION 2.13 Effective Date.    The provisions of this Fourth Supplemental Indenture shall become effective as of the date hereof.

         SECTION 2.14 Responsibility for Recitals.    The recitals contained herein shall be taken as the statements of Allied Capital and the
Trustee
assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Fourth Supplemental Indenture, except that the Trustee represents that
it is duly authorized to execute and deliver this Fourth Supplemental Indenture and perform its obligations hereunder. 

[Signature
Page Follows] 

4

        IN
WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be duly executed as of the date first above written. 

 

 

					
	 	 	ARES CAPITAL CORPORATION
	

 	
 	
 By:	
 	
/s/ RICHARD S. DAVIS

  Name: Richard S. Davis

Title: Chief Financial Officer
	

 	
 	
ALLIED CAPITAL CORPORATION
	

 	
 	
 By:	
 	
/s/ PENNI F. ROLL

  Name: Penni F. Roll

Title: Chief Financial Officer
	

 	
 	
THE BANK OF NEW YORK MELLON
	

 	
 	
 By:	
 	
/s/ CHERYL L. CLARKE

  Name: Cheryl L. Clarke

Title: Vice President

 

 Signature
Page—Fourth Supplemental Indenture 

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Exhibit 10.1

RECITALS OF THE COMPANY

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