Document:

Exhibit
10.2

 

Executive
Change-in-Control

Severance Agreement

 

 

Bank
of Hawaii Corporation

 

1

 

Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Article 1.

  	
  Establishment and Purpose

  	
  3

  
	
   

  	
   

  	
   

  
	
  Article 2.

  	
  Definitions and Construction

  	
  4

  
	
   

  	
   

  	
   

  
	
  Article 3.

  	
  Severance Benefits

  	
  6

  
	
   

  	
   

  	
   

  
	
  Article 4.

  	
  Disqualification From
  Receipt of Benefits

  	
  9

  
	
   

  	
   

  	
   

  
	
  Article 5.

  	
  Form and Timing of Severance
  Benefits

  	
  9

  
	
   

  	
   

  	
   

  
	
  Article 6.

  	
  Parachute Payments

  	
  10

  
	
   

  	
   

  	
   

  
	
  Article 7.

  	
  Other Rights and Benefits
  Not Affected

  	
  11

  
	
   

  	
   

  	
   

  
	
  Article 8.

  	
  Successors

  	
  12

  
	
   

  	
   

  	
   

  
	
  Article 9.

  	
  Administration

  	
  12

  
	
   

  	
   

  	
   

  
	
  Article 10.

  	
  Legal Fees

  	
  13

  

 

2

 

Bank of
Hawaii Corporation

Executive
Change-in-Control Severance Agreement

 

Article
1.               Establishment
and Purpose

 

1.1          Effective Date.   This Executive Change-in-Control Severance
Agreement (the “Agreement) is made and entered
into pursuant to Bank of Hawaii Corporation’s Executive Severance Plan (the “Plan”), and is effective as of this 25th  day of June, 2004 (the “Effective
Date”), by and between Bank of Hawaii Corporation (“BOHC”), a Delaware corporation, and Brian T. Stewart, an
executive (the “Executive”) of its subsidiary,
Bank of Hawaii (the “Bank”).  This Agreement shall supersede and
replace any prior severance agreement entered into between the Bank and the
Executive.

 

1.2          Term of the Agreement.   The Agreement shall commence as of the
Effective Date written above, and shall continue until the Board of Directors
of BOHC (the “Board”) determines, in good faith
and in its sole discretion, that the Executive is no longer to be included in
the Plan and so notifies in writing the Executive during the term of this
Agreement of such determination.

 

Provided, however, in the event that a Change in
Control of BOHC, as defined in Section 2.1 herein, occurs during the term of
this Agreement, this Agreement shall remain irrevocably in effect for the
greater of twenty-four (24) months
from the date of such Change in Control, or until all benefits have been paid
to the Executive hereunder.

 

Further, in the event that the Board has knowledge
that a third party has taken steps reasonably calculated to effect a Change in
Control of BOHC, including, but not limited to, the commencement of a tender
offer for the voting stock of BOHC, or the circulation of a proxy to BOHC’s
shareholders, then this Agreement shall remain irrevocably in effect until the
Board, in good faith, determines that such third party has fully abandoned or
terminated its effort to effect a Change in Control of BOHC.

 

1.3          Purpose of the Agreement.   The purpose of this Agreement
pursuant to the Plan is to advance the interests of BOHC and the Bank by
assuring that BOHC and the Bank will have the continued employment and
dedication of the Executive and the availability of his advice and counsel in
the event that an acquisition or Change in Control of BOHC occurs.  This Agreement shall also assure the
Executive of equitable treatment during the period of uncertainty that
surrounds an acquisition or Change in Control, and allow the Executive to act
at all times in the best interests of BOHC and its shareholders.

 

3

 

1.4          Contractual Right to Benefits.   This Agreement establishes and
vests in the Executive a contractual right to the benefits which he or she is
entitled hereunder, enforceable by the Executive against BOHC.  However, nothing herein shall require BOHC to
segregate, earmark, or otherwise set aside any funds or other assets to provide
for any payments hereunder.

 

This Agreement shall be considered an unfunded
agreement to provide benefits to a select group of management or highly
compensated employees, and is therefore intended to be a “top-hat” plan exempt
from the requirements of the provisions of Parts 2, 3, and 4 of Title I of
ERISA.

 

Article
2.               Definitions
and Construction

 

2.1          Definitions.   Whenever used in the Agreement, the
following terms shall have the meanings set forth below and, when the meaning
is intended, the initial letter of the word is capitalized.

 

(a)           “Base Salary” means the annualized salary at the beginning
of each Year, which includes all
regular basic wages, before reduction for any amounts deferred on a tax-qualified or nonqualified basis, payable in cash
to an Executive for services rendered during the Year.  Base Salary shall exclude bonuses, incentive compensation, special fees or awards, commissions,
allowances, or any other form of premium or incentive pay, or amounts
designated by BOHC as payment toward or reimbursement of expenses.

 

(b)           “Beneficial Owner” shall have the meaning ascribed to such term
in Rule 13d-3 of the General
Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(c)           “Beneficiary” with respect to an Executive means the person
or entities designated or deemed
designated by an Executive pursuant to Section 8.2 herein.

 

(d)           “Board” means the Board of Directors of BOHC.

 

(e)           “Change in Control” of BOHC means any one or more of the
following occurrences:

 

(i)            Any Person, including a “group” as defined in
Section 13(d)(3) of the
Securities Exchange Act of 1934, becomes the beneficial owner of shares of BOHC having 25 percent or
more of the total number of
votes that may be cast for the election of Directors of BOHC; or

 

4

 

(ii)           As the result of, or in connection with, any
cash tender or exchange offer,
merger or other business combination, sale of assets or contested election, or any combination of the foregoing transactions,
the person who were Directors of BOHC before the transaction shall cease to constitute a majority of the Board ofDirectors of BOHC or any successor to
BOHC.

 

(f)            “Code” means the Internal Revenue Code of 1986, as
amended.

 

(g)           “BOHC” means Bank of Hawaii Corporation, a Delaware corporation,
or any successor thereto that adopts the Agreement, as provided in Section 8.1
herein.

 

(h)           “Committee” means the Human Resources and Compensation
Committee of the Board of Directors of BOHC or any other committee appointed by
the Board to administer this Agreement.

 

(i)            “Disability” means a physical or mental condition which
renders an Executive unable to
discharge his normal work responsibility with BOHC or the Bank and which, in the opinion of a
licensed physician selected by the
Executive, subject to reasonable approval by the Committee based upon sufficient medical evidence, can be
reasonably expected to continue for
a period of at least one full calendar year. 
If an Executive fails to select
a physician with ten (10) business
days of a written request made by
BOHC, then BOHC may select a physician for purposes of this paragraph.

 

(j)            “Effective Date” means the date the Agreement is approved by
the Board, or such other date as
the Board shall designate in its resolution approving the Agreement, and as provided in Section 1.1 herein.

 

(k)           “Effective Date of Termination” means the date on which a Qualifying Termination
occurs.

 

(l)            “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended from time to time, or any successor act thereto.

 

(m)          “Expiration Date” means the date the Agreement expires, as
provided in Section 1.2 herein.

 

(n)           “Just Cause” shall mean the basis for a termination of an
Executive’s employment by the Bank for which no Severance Benefits are payable hereunder,
as provided in Article 4 herein.

 

(o)           “Normal Retirement Date” shall mean the date on which the Executive attains
age 65.

 

5

 

(p)           “Person” shall have the meaning ascribed to such terms
in Section 3(a)(9) of the Exchange Act and used in
Sections 13(d) and 14(d) thereof, including a “group” as defined in Section
13(d).

 

(q)           “Plan” means the Bank of Hawaii Corporation Key
Executive Severance Plan, adopted April 27, 1983.

 

(r)           “Qualifying Termination” shall mean a termination of the Executive’s employment
by the Bank as described in Section 3.2 herein.

 

(s)           “Severance Benefit” means the payment of severance compensation
as provided in Article 3 herein.

 

(t)            “Year” means the consecutive 12-month period beginning
each January 1 and ending December 31.

 

2.2          Gender and Number.   Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.

 

2.3          Severability.   In the event any provision of the Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Agreement, and the Agreement shall
be construed and enforced as if the illegal or invalid provision had not been
included.

 

2.4          Modification.   No express provisions of this Agreement may
be modified, waived, or discharged unless such modification, waiver, or
discharge is agreed to by the Executive in writing and approved by the Human
Resources and Compensation Committee of the Board of Directors.

 

2.5          Applicable Law.   To the extent not preempted by the laws of
the United States, the laws of the State of Hawaii shall be the controlling law
in all matters relating to the Agreement without regard to the conflicts of law
principles in such laws.

 

Article
3.               Severance
Benefits

 

3.1          Right to Severance Benefits.   The Executive shall be entitled to receive
from BOHC Severance Benefits as described in Section 3.4 herein, if there has
been a Change in Control of BOHC, as defined in Section 2.1(e) herein, and if,
within twenty-four (24) months
thereafter, the Executive’s employment with the Bank shall end for any reason
specified in Section 3.2 herein as being a Qualifying Termination.  An Executive shall not be entitled to receive
Severance Benefits if the Executive’s employment with the Bank ends due to an
involuntary termination by the Bank for Just Cause, as provided under Article 4
herein, or if the

 

6

 

Executive’s
employment terminates due to death, Disability, or voluntary employment
termination on or after Normal Retirement Date.

 

3.2          Qualifying Termination.   The occurrence of any one or more of the
following events within twenty-four (24) calendar
months after a Change in Control of BOHC shall trigger the payment of Severance
Benefits to the Executive, as provided under Section 3.4 herein:

 

(a)           The Bank’s involuntary termination of the
Executive’s employment without Just Cause;

 

(b)           The Executive’s voluntary employment
termination for Good Reason, as defined by Section 3.3 herein;

 

(c)           A successor company fails or refuses to
assume BOHC’s obligations under this Agreement in their entirety, as required
by Article 8 herein; or

 

(d)           BOHC, or any successor company, commits a
material breach of any of the provisions of this Agreement.

 

3.3          Definition of Good Reason.   “Good Reason” means, without the Executive’s
express written consent, the occurrence after a Change in Control of BOHC of
any one or more of the following:

 

(a)           The assignment of the Executive to duties
materially inconsistent with the Executive’s authorities, duties,
responsibilities, and status (including
offices, titles, and reporting
requirements) as an executive
and/or officer of BOHC or the
Bank, or a material reduction of the Executive’s authorities, duties, or responsibilities from those in effect as of
ninety  (90) days prior to the Change in Control, other
than an act that is remedied by
BOHC or the Bank promptly after receipt of notice thereof given by the Executive;

 

(b)           The Bank requiring the Executive to be based
at a location in excess of seventy-five
(75) miles from the location of the
Executive’s principal job location
or office immediately prior to the Change in Control; except for required travel on Bank business to an extent
substantially consistent with
the Executive’s then present business travel obligations;

 

(c)           A reduction by the Bank of the Executive’s
annual rate of Base Salary in effect as of ninety (90) days
prior to the Change in Control;

 

(d)           The failure of BOHC or the Bank to continue
in effect any of BOHC’s or the Bank’s annual and long-term incentive
compensation plans, or employee benefit or retirement plans, policies,
practices, or other compensation arrangements in which the Executive
participates as in

 

7

 

effect prior to the Change in Control, unless such
failure to continue the plan, policy, practice, or arrangement pertains to all plan
participants generally; or the failure by BOHC or the Bank to continue the Executive’s
participation therein on substantially the same basis, both in terms of the
amount of benefits provided and the level of the Executive’s participation
relative to other participants and commensurate with the Executive’s
responsibility and duties; and

 

(e)           The failure of BOHC or the Bank to obtain a
satisfactory agreement from any successor to BOHC to assume and agree to
perform BOHC’s obligations under this Agreement, as contemplated in Article 8
herein.

 

3.4          Description of Severance Benefits.  
In the event that an
Executive becomes entitled to receive Severance Benefits, as provided in
Section 3.1 herein, BOHC shall pay to the Executive and provide him with the
following:

 

(a)           An amount equal to two (2) times
the Executive’s annual rate of Base Salary in effect upon the Effective Date of
Termination; and

 

(b)           An amount equal to two (2) times
the Executive’s target bonus under the annual incentive plan (which, for purposes
of this Agreement, means the One-Year Incentive Plan, or Key Contributor
Incentive Plan, or any successor or alternative plan or arrangement providing
for an annual incentive bonus) for the fiscal year prior to the Effective Date
of Termination.  If the Executive’s
period of employment is less than one year, the bonus shall be considered
zero (0) however, the “Completion Bonus”
stipulated in the offer of employment letter will be paid, and

 

(c)           A payout under the annual incentive plan, in
accordance with the terms of such plan; and

 

(d)           A payout under the long-term incentive plan,
in accordance with the terms of such plan; and

 

(e)           A continuation of all welfare benefits at
normal employee cost including medical insurance, long-term disability, and
group term life insurance for two (2) full years
from the Effective Date of Termination or until the Executive reaches his
Normal Retirement Date, whichever occurs earlier.  However, these benefits will be discontinued
prior to the end of the two (2) years in the
event the Executive receives substantially similar benefits from a subsequent
employer, as determined by the Human Resources and Compensation Committee.

 

3.5          Reduction of Severance Benefits.  
In the event there
are fewer than twenty-four (24) whole or
partial months remaining from the Executive’s Effective Date of Termination
until the Executive’s Normal Retirement Date,  then
the amounts provided for under Sections 3.4(a),

 

8

 

(b),
(c), and (d) above shall be reduced by a fraction, the numerator of which shall
be the number of whole or partial months remaining until the Executive’s Normal
Retirement Date, and the denominator of which shall be twenty-four (24).

 

3.6          Outplacement Services.   In the event that the Executive becomes
entitled to receive Severance Benefits as provided in Section 3.1 herein, the
Executive shall be entitled, at the expense of BOHC, to receive standard
outplacement services from a nationally recognized outplacement firm as selected
by the Executive, for a period of up to twenty-four (24) months
from the Effective Date of Termination. 
However, such services shall not exceed a maximum annual benefit of ten
percent (10%) of the Executive’s annual rate of
Base Salary as of the Effective Date of Termination.

 

3.7          Incentive Compensation.  In the event that the Executive becomes
entitled to receive Severance Benefits as provided in Section 3.1 herein, any
deferred awards previously granted to the Executive under the annual incentive
plan and long-term incentive plan, and not previously paid to the Executive,
shall immediately vest on the date of the Executive’s Effective Date of
Termination and shall be paid no later than ninety (90) calendar
days following that date, and be included as compensation in the month paid.

 

3.8          Stock Options and SARs.   Stock options (“options”),
stock appreciation rights (“SARs”) and
restricted shares, if any, granted to the
Executive by BOHC will be exercisable or payable pursuant to the terms of the
applicable plans.

 

Article
4.               Disqualification
From Receipt of Benefits

 

No Severance Benefits shall be payable to the
Executive under this Agreement in the event the Executive is terminated by the
Bank for Just Cause.

 

For this purpose, Just Cause shall mean willful,
malicious conduct by the Executive which is detrimental to the best interests
of BOHC including theft, embezzlement, the conviction of a criminal act,
disclosure of trade secrets, a gross dereliction of duty, or other grave
misconduct on the part of the Executive which is substantially injurious to
BOHC or the Bank.  Just Cause also shall
include the failure of the Executive to perform any and all covenants under
this Agreement.

 

Article
5.               Form
and Timing of Severance Benefits

 

5.1          Form and Timing of Severance Benefits. 
The Severance
Benefits described in Sections 3.4(a), (b), (c) and (d) herein, shall be paid
in cash to the Executive in a single lump sum as soon as practicable following
the Executive’s Effective Date of Termination, but in no event beyond ninety (90) calendar days from such date.

 

9

 

The Severance Benefits described in Section 3.4(e)
herein shall be provided by BOHC to the Executive immediately upon the
Executive’s Effective Date of Termination and shall continue to be provided for
two (2) full calendar years from the
Executive’s Effective Date of Termination or until the Executive reaches his
Normal Retirement date, whichever occurs earlier.  However, the Severance Benefits described in
Section 3.4(e) herein shall be discontinued prior to the end of the two (2) year period immediately upon the Executive receiving
substantially similar benefits from a subsequent employer, as determined by the
Committee.

 

5.2          Withholding of Taxes.   BOHC shall withhold from any amounts payable
under this Agreement all Federal, state, city, or other taxes as legally shall
be required.

 

Article
6.               Parachute
Payments

 

6.1          Determination of Alternative Severance Benefit Limit.   Notwithstanding any other provision of this Agreement, if any portion
of the Severance Benefits or any other payment under this Agreement, or under
any other agreement with, or plan of BOHC (in the aggregate “Total
Payments”) would constitute an “excess parachute payment”, then the
payments to be made to the Executive under this Agreement shall be reduced such
that the value of the aggregate Total Payments that the Executive is entitled
to receive shall be one dollar ($1) less than
the maximum amount which the Executive may receive without becoming subject to
the tax imposed by Section 4999 of the Code, or which BOHC may pay without loss
of deduction under Section 280G(a) of the Code. 
However, such reduction in Severance Benefits shall apply if, and only
if, the resulting Severance Benefits with such reduction is greater in value to
the Executive than the value of the Severance Benefits without a reduction, net
of any tax imposed on the Executive pursuant to Section 4999 of the Code.

 

For purposes of this Agreement, the terms “excess
parachute payment” and “parachute payments” shall have the meanings assigned to
such terms in Section 280G of the Code, and such “parachute payments” shall be
valued as provided therein.

 

6.2          Procedure for Establishing Alternative Limitation.   Within fifteen (15) calendar
days following delivery of the notice of Qualifying Termination  or notice by BOHC to the Executive of its belief that there
is a payment or benefit due the Executive which will result in an “excess
parachute payment” as defined in Section 280G of the Code, the Executive and
BOHC, at BOHC’s expense, shall obtain the opinion of BOHC’s principal outside
law firm, accounting firm, and/or compensation and benefits consulting firm,
which sets forth:  (i) the
amount of the Executive’s “annualized includible compensation for the base
period” [as defined in Code Section 280G(d)(1)]; (ii) the
present value of the Total Payments; and (iii) the
amount and present value of any “excess parachute payment”.

 

In the event that such opinion determines that there
would be an “excess parachute payment”, such that a reduction in the Severance
Benefits would result in a greater net benefit to the Executive (as provided in Section 6.1 herein), then the Severance
Benefits hereunder or any other payment determined under the opinion to be
includible in Total Payments shall be reduced

 

10

 

or eliminated so that, on the basis of calculations set forth in such
opinion, there will be no “excess parachute payment”.

 

The reduction or elimination of specific payments
shall apply to such type and amount of specific payments as may be designated
by the Executive in writing delivered to BOHC within ten (10)
calendar days of receipt of the opinion, or, if the Executive fails to so
notify BOHC, as may be reasonably determined by BOHC.

 

The provisions of this Section 6.2, including the
calculations, notices, and opinion provided for herein, shall be based upon the
conclusive presumption that the following amounts are reasonable:  (i) the compensation
and benefits provided for in Article 3 herein; and (ii) any
other compensation earned prior to the Effective Date of Termination by the
Executive pursuant to BOHC’s compensation programs (if such
payments would have been made in the future in any event, even though the
timing of such payment is triggered by the Change in Control).

 

6.3          Subsequent Imposition of Excise Tax.  
If, notwithstanding
compliance with the provisions of Sections 6.1 and 6.2 herein, it is ultimately
determined by a court or pursuant to a final determination by the Internal
Revenue Service that any portion of the Total Payments is considered to be a “parachute
payment”, subject to excise tax under Section 4999 of the Code, which was not
contemplated to be a “parachute payment” at the time of payment (so as to accurately determine whether a limitation should have been
applied to the Total Payments to maximize the net benefit to the Executive, as
provided in Sections 6.1 and 6.2 herein), the Executive shall be
entitled to receive a lump-sum cash payment sufficient to place the Executive
in the same net after-tax position, computed by using the “Special Tax Rate” as
such term is defined below, that the Executive would have been in had such
payment not been subject to such excise tax, and had the Executive not incurred
any interest charges or penalties with respect to the imposition of such excise
tax.  For purposes of this Agreement, the
“Special Tax Rate” shall be the highest effective Federal and state marginal
tax rates applicable to the Executive in the year in which the payment
contemplated under the Section 6.3 is made.

 

Article
7.               Other
Rights and Benefits Not Affected

 

7.1          Other Benefits.   Neither the provisions of this Agreement nor
the Severance Benefits provided for hereunder shall reduce any amounts
otherwise payable, or in any way diminish the Executive’s rights as an employee
of BOHC, whether existing now or hereafter, under any benefit, incentive,
retirement, stock option, stock bonus, stock purchase plan, or any employment
agreement, or other plan or arrangement.

 

7.2          Employment Status.   This Agreement does not constitute a contract
of employment or impose on the Bank or BOHC any obligation to retain the
Executive as an employee, to change the status of the Executive’s employment,
or to change BOHC’s policies regarding termination of employment.  The Executive serves as an employee of the
Bank and this Agreement shall not create an employment relationship between
BOHC and the Executive.

 

11

 

Article
8.               Successors

 

8.1          Successors.   BOHC will require any successor (whether direct or indirect, by purchase, merger, consolidation, or
otherwise) of all or substantially all of the business and/or assets
of BOHC or of any division or subsidiary thereof to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that BOHC
would be required to perform it if no such succession had taken place.  Failure of BOHC to obtain such assumption and
agreement prior to the effectiveness of any such succession shall be a breach
of this Agreement and shall entitle the Executive to compensation from BOHC in
the same amount and on the same terms as they would be entitled hereunder if
terminated voluntarily following a Change in Control.  Except for the purposes of implementing the
foregoing, the date on which any succession becomes effective shall be deemed
the Effective Date of Termination.

 

This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees.  If an Executive should die while any amount
would still be payable to him hereunder had he continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement, to the Executive’s devisee, legatee, or other
designee, or if there is no such designee, to the Executive’s estate.

 

8.2          Beneficiaries.   The beneficiary of the Executive’s Severance
Benefits under this Agreement shall be designated by the Executive in the form
of a signed writing acceptable to the Committee.  An Executive may make or change such
designation at any time.

 

Article
9.               Administration

 

9.1          Administration.   This Agreement shall be administered by the
Human Resources and Compensation Committee of the Board of Directors.  The Committee is authorized to interpret this
Agreement, to prescribe and rescind rules and regulations, to provide
conditions and assurances deemed necessary and advisable, to protect the
interests of BOHC, and to make all other determinations necessary or advisable
for the Agreement’s administration.

 

In fulfilling its administrative duties hereunder,
the Committee may rely on outside counsel, independent accountants, or other
consultants to render advice or assistance.

 

9.2          Indemnification and Exculpation.  
The members of the
Board, its agents and officers, directors, and employees of BOHC and its
affiliates shall be indemnified and held harmless by BOHC against and from any
and all loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by them in connection with or resulting from any claim,
action, suit, or proceeding to which they may be a party or in which they may
be involved by reason of any action taken or failure to act under this
Agreement and against and from any and all amounts paid by them in settlement (with BOHC’s written approval) or paid by them in

 

12

 

satisfaction of a judgment in any such action, suit, or
proceeding.  The foregoing provision
shall not be applicable to any person if the loss, cost, liability, or expense
is due to such person’s gross negligence or willful misconduct.

 

Article
10.             Legal
Fees

 

BOHC shall pay all reasonable legal fees, costs of
litigation, and other expenses incurred in good faith by the Executive as a
result of BOHC’s refusal to provide the Severance Benefits to which the
Executive becomes entitled under this Agreement, or as
a result of BOHC’s contesting the validity, enforceability, or interpretation
of the Agreement.  Provided,
however, that such payments shall not exceed the amount permitted by law and
BOHC’s Restated Articles of Incorporation.

 

IN WITNESS WHEREOF, BOHC has caused this Agreement
to be executed by a resolution of the Board of Directors, as of the day and
year first above written.

 

	
   

  	
  Bank
  of Hawaii Corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Michael E. O’Neill

  	
   

  
	
   

  	
   

  	
  Michael
  E. O’Neill

  	
   

  
	
   

  	
  Its:

  	
  Chairman
  & CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Brian T. Stewart

  	
   

  
	
   

  	
   

  	
  (Executive)

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  /s/ Neal C. Hocklander

  	
   

  	
   

  
						

 

13Exhibit
4.1

 

[EXECUTION COPY]

 

THIRD AMENDMENT TO CREDIT
AGREEMENT and

FIRST AMENDMENT TO PARENT GUARANTY AND PLEDGE AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT and FIRST
AMENDMENT TO PARENT GUARANTY AND PLEDGE AGREEMENT, dated as of October 22,
2004 (this “Amendment”), is made by REDDY ICE GROUP, INC., a Texas
corporation (the “Borrower”), REDDY ICE HOLDINGS, INC., a Delaware
corporation (“Parent”), CREDIT SUISSE FIRST BOSTON, acting through its
Cayman Islands Branch (“CSFB”), as the Administrative Agent, CANADIAN
IMPERIAL BANK OF COMMERCE and BEAR STEARNS CORPORATE LENDING INC., as the
Co-Syndication Agents, and certain of the Lenders (such capitalized term and
other capitalized terms used in this preamble and the recitals below to have
the meanings set forth in, or are defined by reference in, Article I
below).

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Lenders, the Administrative
Agent, the Co-Syndication Agents, and CIBC World Markets Corp., CSFB and Bear,
Stearns & Co. Inc., as the Lead Arrangers and Joint-Book-Runners, are all
parties to the Credit Agreement, dated as of August 15, 2003 (as amended
or otherwise modified prior to the date hereof, the “Existing Credit
Agreement”, and as amended by this Amendment and as the same may be further
amended, supplemented, amended and restated or otherwise modified from time to
time, the “Credit Agreement”);

 

WHEREAS, Parent and the Administrative Agent are
parties to the Parent Guaranty and Pledge Agreement, dated as of August 15,
2003 (as amended or otherwise modified prior to the date hereof, the “Existing
Parent Guaranty and Pledge Agreement”, and as amended by this Amendment and
as the same may be further amended, supplemented, amended and restated or
otherwise modified from time to time, the “Parent Guaranty and Pledge
Agreement”);

 

WHEREAS, the Borrower and Parent have requested that
the Lenders amend certain provisions of the Existing Credit Agreement and the
Existing Parent Guaranty and Pledge Agreement; and

 

WHEREAS, the Lenders party hereto are willing to amend
the Existing Credit Agreement and the Existing Parent Guaranty and Pledge
Agreement as set forth below on the terms and subject to the conditions
hereinafter set forth;

 

NOW, THEREFORE, the parties hereto hereby covenant and
agree as follows:

 

 

ARTICLE I

DEFINITIONS

 

SECTION 1.1.  Certain Definitions.  The following terms when used in this
Amendment shall have the following meanings (such meanings to be equally
applicable to the singular and plural forms thereof):

 

“Amendment” is defined in the preamble.

 

“Amendment Effective Date” is defined in Article IV.

 

“Borrower” is defined in the preamble.

 

“Credit Agreement” is defined in the first
recital.

 

“CSFB” is defined in the preamble.

 

“Existing Credit Agreement” is defined in the first
recital.

 

“Existing Parent Guaranty and Pledge Agreement”
is defined in the second recital.

 

“Parent” is defined in the preamble.

 

“Parent Guaranty and Pledge Agreement” is
defined in the second recital.

 

“Parent Debt” is defined in Section 3.1.1.

 

“Parent Debt Documents” is defined in Section 3.1.1.

 

“Parent Note Indenture” is defined in Section 3.1.1.

 

“Parent Notes” is defined in Section 3.1.1.

 

SECTION 1.2.  Other Definitions.  Terms for which meanings are provided in the
Credit Agreement are, unless otherwise defined herein or the context otherwise
requires, used in this Amendment with such meanings.

 

ARTICLE II

AMENDMENTS TO EXISTING CREDIT AGREEMENT

 

Effective on (and subject to the occurrence of) the
Amendment Effective Date, the provisions of the Existing Credit Agreement
referred to below are hereby amended in accordance with this Article II.  Except as expressly so amended, the Existing
Credit Agreement shall continue in full force and effect in accordance with its
terms.

 

SECTION 2.1.  Amendments to Article I.  Article I of the Existing Credit
Agreement is hereby amended as follows:

 

2

 

SECTION 2.1.1.  Section 1.1 of the Existing Credit
Agreement is hereby amended by inserting the following definitions in the
appropriate alphabetical order:

 

“Existing Preferred Stock” means Parent’s 12%
cumulative redeemable Series A preferred stock.

 

“Third Amendment” means the Third Amendment to
Credit Agreement and the First Amendment to Parent Guaranty and Pledge
Agreement, dated as of October 22, 2004, among the Borrower, Parent, the
Administrative Agent, the Co-Syndication Agents and the Lenders party thereto.

 

“Third Amendment Effective Date” means the
Amendment Effective Date (as defined in the Third Amendment).

 

“Third Amendment Fee Letter” means the
confidential letter, dated the Third Amendment Effective Date, from CIBC to the
Borrower.

 

“Third Amendment Restricted Payment” means a
Restricted Payment made by the Borrower to Parent in an amount not to exceed
$30,000,000.

 

“Transaction Payment” means the special
transaction payments paid to certain members of management and certain
directors after the Third Amendment Effective Date in an amount not to exceed
$1,300,000.

 

SECTION 2.1.2.  The definition of “Change in Control” set
forth in Section 1.1 of the Existing Credit Agreement is hereby amended by
replacing the words “initially held by the Permitted Holders on the Closing
Date” with the words “held by the Permitted Holders on the Third Amendment
Effective Date (after giving effect to the redemption of the Existing Preferred
Stock)” appearing in clause (a)(i) and clause (b)(i)(A) thereof.

 

SECTION 2.1.3.  The definition of “EBITDA” set forth in Section 1.1
of the Existing Credit Agreement is hereby amended by deleting the word “and”
at the end of clause (v) thereof and replacing it with “,”, deleting the “.” at
the end of clause (vi) thereof and replacing it with the word “and” and
inserting a new clause (vii) to read as follows:

 

(vii)  for the four Fiscal Quarters ending after the
Third Amendment Effective Date, an amount equal to the sum of (x) the amount of
the Transaction Payment plus (y) an amount not to exceed $4,000,000 for
other expenses incurred in connection with the transactions contemplated by the
Third Amendment (including the issuance of the Parent Notes).

 

SECTION 2.2.  The definition of “Fee Letters” is hereby
amended and restated in its entirety as follows

 

“Fee Letters” means (a) the confidential
letter, dated May 12, 2003, from CSFB, CIBC, BSCL, CIBC World Markets and Bear
Stearns to Parent and Merger Sub, (b) the

 

3

 

confidential
letter, dated the Closing Date, from CSFB to the Borrower, (c) the First
Amendment Fee Letter and (d) the Third Amendment Fee Letter.

 

SECTION 2.3.  Amendment to Articles III.  The first sentence of clause (h) of Section 3.1.1
of the Existing Credit Agreement is hereby amended by deleting the “.” at the
end of such sentence and replacing it with “; provided, further
that the amount of the mandatory prepayment owed for the 2004 Fiscal Year, if
any, pursuant to this clause shall equal the amount calculated as set forth
above less the sum of the amount of the Third Amendment Restricted Payment and
the Transaction Payment.”.

 

SECTION 2.4.  Amendments to Articles VII.  Article VII of the Existing Credit
Agreement is hereby amended as follows:

 

SECTION 2.4.1.  Section 7.2.6 of the Existing Credit
Agreement is hereby amended by deleting the “and” at the end of clause (e)
thereof, replacing the “.” at the end of clause (f) thereof with “; and” and
inserting a new clause (g) at the end of such Section to read as follows:

 

(g)  so long as
no Default has occurred and is continuing or would occur after giving effect
thereto, the Borrower may make the Third Amendment Restricted Payment so long
as the proceeds thereof are used, together with the proceeds of the Parent
Notes to redeem all of the outstanding Existing Preferred Stock, pay fees and
expenses incurred in connection with the issuance of the Parent Notes, pay a
dividend to the holders of the common stock of Parent.

 

SECTION 2.4.2.  Section 7.2.10 of the Existing Credit
Agreement is hereby amended by deleting the “and” at the end of clause (c)
thereof, replacing the “.” at the end of clause (d) thereof with a “; and” and
inserting a new clause (e) at the end of such Section to read as follows:

 

(e) 
notwithstanding anything else set forth in any Loan Document (and
waiving the requirement for prior written notice set forth in Section 4.2
of the Borrower Pledge and Security Agreement), so long as no Default has
occurred and is continuing, the Borrower may, on or after the Third Amendment
Effective Date, merge with and into another Subsidiary of Parent or the
Borrower so long as after giving effect thereto the Administrative Agent shall
have a perfected pledge of 100% of the Capital Securities of the surviving
Person and prior thereto the Borrower shall have delivered such documentation
as shall be reasonably necessary in the opinion of the Administrative Agent to
maintain the security interest of the Secured Parties in the assets of the
Borrower to the same extent as before giving effect thereto.

 

ARTICLE III

AMENDMENTS TO EXISTING 

PARENT GUARANTY AND PLEDGE AGREEMENT

 

Effective on (and subject to the occurrence of) the
Amendment Effective Date, the provisions of the Existing Parent Guaranty and
Pledge Agreement referred to below are hereby amended in accordance with this Article III.  Except as expressly so amended, the Existing

 

4

 

Parent Guaranty and Pledge Agreement shall continue in full force and
effect in accordance with its terms.

 

SECTION 3.1.  Amendment to Article I.  Article I of the Existing Parent
Guaranty and Pledge Agreement is hereby amended as follows:

 

SECTION 3.1.1.  Section 1.1 of the Existing Parent
Guaranty and Pledge Agreement is hereby amended by inserting the following
definitions in the appropriate alphabetical order:

 

“Parent Debt” means the Indebtedness evidenced
by the Parent Notes.

 

“Parent Debt Documents” means, collectively,
the Parent Note Indenture, the Registration Rights Agreement (as defined in the
Parent Note Indenture) and each of the loan agreements, indentures, note
purchase agreements, promissory notes, guarantees, and other instruments
(including the Parent Notes) evidencing the terms of the Parent Debt, as
amended, supplemented, amended and restated or otherwise modified in accordance
with Section 5.10.

 

“Parent Note Indenture” means the Indenture, dated
as of the Third Amendment Effective Date, among the Guarantor and U.S. Bank
National Association, as trustee, as in effect on the Third Amendment Effective
Date and, thereafter, as amended, supplemented, amended and restated or
otherwise modified in accordance with Section 5.10.

 

“Parent
Notes” means the Guarantor’s senior discount notes due 2012, issued for
gross cash proceeds of up to $100,200,000, as in effect on the Third Amendment
Effective Date and, thereafter, as amended, supplemented, amended and restated
or otherwise modified in accordance with Section 5.10 and any
registered exchange notes issued in exchange therefor.

 

SECTION 3.2.  Amendments to Article IV.  Article IV of the Existing Parent
Guaranty and Pledge Agreement is hereby amended by inserting a new Section 4.10
at the end of such Article to read as follows:

 

SECTION 4.10  Issuance of Parent Notes.  The Guarantor has the power and authority to
incur the Parent Debt as provided for under the Parent Debt Documents
applicable thereto and has duly authorized, executed and delivered the Parent
Debt Documents applicable to such Parent Debt. 
On the Third Amendment Effective Date, the Guarantor has issued the
Parent Debt under the applicable Parent Debt Documents, and such Parent Debt
Documents constitute, assuming the due authorization, execution and delivery by
the other parties thereto, the legal, valid and binding obligations of the
Guarantor enforceable against the Guarantor in accordance with their terms
(except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights
generally and by principles of equity).

 

SECTION 3.3.  Amendments to Articles V.  Article V of the Existing Parent
Guaranty and Pledge Agreement is hereby amended as follows:

 

5

 

SECTION 3.3.1.  Clause (b)(v) of Section 5.10 of the
Existing Parent Guaranty and Pledge Agreement is hereby amended and restated in
its entirety as follows:

 

(v)  incur any Indebtedness
or otherwise become or be liable in respect of any Indebtedness other than in
respect of (A) the Obligations, (B) the guarantees of the Subordinated Notes
(or any refinancing thereof) and (C) so long as no Default has occurred and is
continuing prior to the issuance thereof, unsecured Indebtedness of the
Guarantor evidenced by the Parent Notes incurred pursuant to the terms of the
Parent Debt Documents resulting in gross proceeds of up to $100,200,000 so long
as the proceeds thereof, together with the proceeds of the Third Amendment
Restricted Payment, are used to redeem all of the outstanding Existing
Preferred Stock, pay fees and expenses incurred in connection with the issuance
of the Parent Notes, pay a dividend to the holders of the common stock of
Parent.

 

SECTION 3.3.2.  Clause (b) of Section 5.10 of the
Existing Parent Guaranty and Pledge Agreement is hereby further amended by
deleting the word “or” at the end of clause (v) thereof, replacing the “.” at
the end of clause (vi) thereof with a “;” and inserting new clauses (vii) and
(viii) at the end of such Section to read as follows:

 

(vii)  and will not permit any of its Subsidiaries
to (A) make any payment or prepayment of principal of, or premium or interest
on, the Parent Notes other than the scheduled date for payment of interest set
forth in the applicable Parent Debt Documents, (B) redeem, retire, purchase,
defease or otherwise acquire the Parent Notes or (C) make any deposit
(including the payment of amounts into a sinking fund or other similar fund)
for any of the foregoing purposes; provided that this clause (vii)
shall not prohibit the prepayment of the Parent Notes with the proceeds of any
issuance of Capital Securities of Parent not required to be used to prepay the
Loans pursuant to clause (e) of Section 3.1.1 of the Credit Agreement; or

 

(viii)  consent to any amendment, supplement, waiver
or other modification of the terms or provisions contained in the Parent Debt
Documents, other than any amendment, supplement, waiver or modification of the
Parent Debt Documents which (i) extends the date or reduces the amount of any
required repayment, prepayment or redemption of the principal of such Parent
Debt, (ii) reduces the rate or extends the date for payment of the interest,
premium (if any) or fees payable on such Parent Debt or (iii) makes the
covenants, events of default or remedies in such Parent Debt Documents less
restrictive on the Guarantor.

 

ARTICLE IV

CONDITIONS TO EFFECTIVENESS

 

This Amendment and the amendments contained herein
shall become effective on the date (the “Amendment Effective Date”) when
each of the conditions set forth in this Article IV shall have been
fulfilled to the satisfaction of the Administrative Agent.

 

6

 

SECTION 4.1.  Counterparts.  The Administrative Agent shall have received
counterparts hereof executed on behalf of the Borrower, Parent, the
Administrative Agent, the Co-Syndication Agents and the Required Lenders.

 

SECTION 4.2.  Affirmation and Consent.  The Administrative Agent shall have received
a duly executed copy of an Affirmation and Consent, dated as of the Amendment
Effective Date, in form and substance satisfactory to the Lead Arrangers, duly
executed and delivered by each of the Obligors (other than the Borrower and
Parent).

 

SECTION 4.3.  Issuance of Parent Notes, Parent Debt
Documents.  Substantially
contemporaneously with the effectiveness of this Amendment, Parent shall have
issued the Parent Notes on terms and conditions reasonably satisfactory to the
Lead Arrangers.  The Lead Arrangers shall
be reasonably satisfied with the terms and conditions of all documentation
related to the Parent Debt, including the Parent Notes and the Parent Notes
Indenture.

 

SECTION 4.4.  Closing Fees, Expenses, etc.  The Administrative Agent shall have received
for its own account, or for the account of each Lead Arranger, as the case may
be, all fees, costs and expenses due and payable pursuant to Section 3.3.2
or Section 10.3 of the Credit Agreement.

 

SECTION 4.5.  Amendment Fee.  The Administrative Agent shall have received
for the account of each Lender (that has delivered its signature page in a
manner and before the time set forth below), an amendment fee in an amount
equal to 0.10% of the sum of (i) the outstanding principal amount of Loans
owing to such Lender on the Amendment Effective Date plus (ii) such
Lender’s Revolving Loan Percentage of the unused portion of the Revolving Loan
Commitment Amount (excluding outstanding Swing Line Loans and Letter of Credit
Outstandings) on the Amendment Effective Date, but payable only to each such
Lender that has delivered (including by way of facsimile) its executed
signature page to this Amendment to the attention of Mariana Baquero at Mayer,
Brown, Rowe & Maw LLP, 1675 Broadway, New York, New York 10019, facsimile
number: 212-262-1910, at or prior to 5:00 p.m. (New York time) on October 22,
2004.

 

SECTION 4.6.  Satisfactory Legal Form.  The Administrative Agent and its counsel
shall have received all information, and such counterpart originals or such
certified or other copies of such materials, as the Administrative Agent or its
counsel may reasonably request, and all legal matters incident to the
effectiveness of this Amendment shall be satisfactory to the Administrative
Agent and its counsel.  All documents
executed or submitted pursuant hereto or in connection herewith shall be
reasonably satisfactory in form and substance to the Administrative Agent and
its counsel.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1.  Cross-References.  References in this Amendment to any Article or
Section are, unless otherwise specified, to such Article or Section of
this Amendment.

 

7

 

SECTION 5.2.  Loan Document Pursuant to Existing Credit
Agreement.  This Amendment is a Loan
Document executed pursuant to the Existing Credit Agreement and shall (unless
otherwise expressly indicated therein) be construed, administered and applied
in accordance with all of the terms and provisions of the Existing Credit
Agreement, as amended hereby, including Article X thereof.

 

SECTION 5.3.  Successors and Assigns.  This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 

SECTION 5.4.  Counterparts.  This Amendment may be executed by the parties
hereto in several counterparts, each of which when executed and delivered shall
be an original and all of which shall constitute together but one and the same
agreement.  Delivery of an executed counterpart
of a signature page to this Amendment by facsimile shall be effective as
delivery of a manually executed counterpart of this Amendment.

 

SECTION 5.5.  Governing
Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

SECTION 5.6.  Full Force and Effect; Limited Amendment.  Except as expressly amended hereby, all
of the representations, warranties, terms, covenants, conditions and other
provisions of the Existing Credit Agreement, the Existing Parent Guaranty and
Pledge Agreement and the Loan Documents shall remain unchanged and shall
continue to be, and shall remain, in full force and effect in accordance with
their respective terms.  The amendments
set forth herein shall be limited precisely as provided for herein to the
provisions expressly amended herein and shall not be deemed to be an amendment
to, waiver of, consent to or modification of any other term or provision of the
Existing Credit Agreement, the Existing Parent Guaranty and Pledge Agreement or
any other Loan Document or of any transaction or further or future action on
the part of any Obligor which would require the consent of the Lenders under
the Existing Credit Agreement, the Existing Parent Guaranty and Pledge
Agreement or any of the Loan Documents.

 

SECTION 5.7.  Representations and Warranties.  In order to induce the Lenders to execute and
deliver this Amendment, the Borrower hereby represents and warrants to the
Lenders, on the Amendment Effective Date, after giving effect to this
Amendment, that all statements set forth in Section 5.2.1 of the Credit
Agreement are true and correct as of such date, except to the extent that any
such statement expressly relates to an earlier date (in which case such
statement was true and correct on and as of such earlier date).

 

8

 

IN WITNESS WHEREOF, the parties hereto have executed
and delivered this Amendment as of the date first above written.

 

 

	
   

  	
  REDDY ICE GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Janusek

  	
   

  
	
   

  	
   

  	
  Steven J. Janusek, Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REDDY ICE HOLDINGS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Janusek

  	
   

  
	
   

  	
   

  	
  Steven J. Janusek, Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST
  BOSTON, acting through its

  Cayman Islands Branch,

  
	
   

  	
  as Administrative Agent
  and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James P. Moran

  	
   

  
	
   

  	
   

  	
  James P. Moran,
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Denise L. Alvarez

  	
   

  
	
   

  	
   

  	
  Denise L. Alvarez,
  Associate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CANADIAN IMPERIAL BANK

  OF COMMERCE,

  
	
   

  	
  as a Co-Syndication
  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Knight

  	
   

  
	
   

  	
   

  	
  George Knight, Managing
  Director

  

 

9

 

	
   

  	
  BEAR STEARNS CORPORATE
  LENDING INC.,

  
	
   

  	
  as a Co-Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victor
  Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Victor Bulzacchelli

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [INSERT NAME OF LENDER]*

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

* The
following Lenders have executed this Third Amendment to Credit Agreement and
First Amendment to Parent Guarantee and Pledge Agreement:

 

Access Institutional Loan
Fund

AIB Debt Management Ltd

AMMC CDO II, Limited

Ares V CLO Ltd

Ares VI CLO Ltd

Ares VII CLO Ltd

Ares VIII CLO Ltd

Ballyrock CDO I Limited

Ballyrock CLO II Limited

Big Sky Senior Loan Fund,
Ltd

Black Diamond CLO 1998-1

Bryn Mawr CLO Ltd.

Callidus Debt Partners
CLO Fund II, Ltd.

Carlyle High Yield
Partners II, Ltd.

Carlyle High Yield
Partners III, Ltd.

Carlyle High Yield
Partners, L.P.

Carlyle Loan Opportunity
Fund

CIT Lending Services
Corporation

Citigroup Investments
Corporate Loan Fund Inc.

Clydesdale CLO 2003 Ltd.

Columbus Loan Funding
Ltd.

Costantinus Eaton Vance,
CDO V, Ltd

Eaton Vance CDO III, Ltd.

Eaton Vance CDO VI Ltd.

Eaton Vance Floating-Rate
Income Trust

Eaton Vance Institutional
Senior Loan Fund

Eaton Vance Limited
Duration Income Fund

Eaton Vance Senior Floating-Rate
Trust

Eaton Vance Senior Income
Trust

Eaton Vance VT
Floating-Rate Income Fund

Fidelity Advisor Series
II: Fidelity Advisor Floating Rate High Income Fund

Flagship CLO 2001-1

Flagship CLO II

Flagship CLO III

Forest Creek CLO Ltd.

Franklin Floating Rate
Master Series

Franklin Floating Rate
Trust

General Electric Capital
Corporation

Grayson & Co.

GSC Partners Gemini Fund
Limited

Gulf Stream-Compass CLO
2003-1 Ltd.

Gulf Stream-Compass CLO
2004-1 Ltd.

Harbour Town Funding LLC

Highland Floating Rate
Advantage Fund

 

10

 

Highland Floating Rate
Limited Liability Company

Investors Bank &
Trust Company as Sub-Custodian Agents of Cypresstree International Loan Holding
Company Limited

Katonah III, Ltd.

Katonah V, Ltd.

Landmark III CDO Ltd.

Loan Funding IV LLC

Long Grove CLO Ltd.

Magnetite IV CLO, Limited

Magnetite V CLO, Limited

Merrill Lynch Capital

Monument Capital Ltd.

New Alliance Global CDO,
Limited

Monument Park CDO Ltd.

Muirfield Trading LLC

Navigator CDO 2003, Ltd.

NYLIM Flatiron CLO 2003-1
Ltd.

MainStay Floating Rate
Fund

Oakhill Credit Partners
I, Limited

Oakhill Credit Partners
II, Limited

Oxford Strategic Income
Fund

PPM Shadow Creek Funding
LLC

PPM Spyglass Funding
Trust

Rosemont CLO Ltd.

Sankaty Advisors, LLC as
Collateral Manager for Avery Point CLO, Ltd.

Sankaty Advisors, LLC as
Collateral Manager for Castle Hill II- INGOTS, Ltd.

Sankaty Advisors, LLC as
Collateral Manager for Race Point CLO, Limited

Sankaty Advisors, LLC as
Collateral Manager for Race Point II CLO, Limted

Sankaty High Yield
Partners III, L.P.

Senior Debt Portfolio

Sequils-Cumberland I,
Ltd.

Sequils-Glace Bay, Ltd.

Sierra CLO I

SRF 2000, Inc.

State Street Bank and
Trust Company as Trustee for General Motors Welfare Benefit Trust

State Street Bank and
Trust Company as Trustee for GMAM Group Pension Trust I

Tolli & Co.

TRS Callisto LLC

TRS Eclipse LLC

Union Square CDO Ltd.

Veritas CLO I, Ltd.

Winged Food Funding Trust

 

11

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