Document:

Exhibit
10.1

Employment
Agreement

This Employment Agreement (the “Agreement”)
dated as of March 28, 2007 and effective as of May 14, 2007 (the “Effective
Date”), is made by and between Paul H. Sunu (the “Executive”) and
Hawaiian Telcom Communications, Inc. and any of its subsidiaries and affiliates
as may employ Executive from time to time (collectively, and together with any
successor thereto, the “Company”). Notwithstanding anything herein to the
contrary, this Agreement shall be void and of no force and effect if within 20
days of the Effective Date the Company is not, acting reasonably and in good
faith, satisfied with the results of a background check on the Executive.

RECITALS

A.                                 The Company desires
to engage the Executive to
perform services pursuant to the terms and conditions of this Agreement.

B.                                   The Executive desires to provide services to
the Company on the terms herein provided.

AGREEMENT

NOW,
THEREFORE, in consideration of the foregoing and of the covenants set forth
below, the parties agree as follows:

1.             Certain Definitions.

(a)                                  “Annual
Base Salary” shall have the meaning set forth in Section 3(a).

(b)                                  “Board”
shall mean the Board of Directors of the Company.

(c)                                  “Cause” to terminate  the Executive’s employment shall include any
of the following facts or circumstances:

(i)                         Executive’s
failure to follow a legal order of the Board, other than any such failure
resulting from the Executive’s Disability, and such failure is not remedied
within 30 days after receipt of written notice;

(ii)                      Executive’s
gross or willful misconduct in the performance of duties that causes or is
reasonably likely to cause damage to the Company;

(iii)                   Executive’s
conviction of felony or crime involving material dishonesty or moral turpitude;

(iv)                  Executive’s
fraud or, other than with respect to a de minimis amount, personal dishonesty
involving the Company’s assets; or

(v)                     The
Executive’s unlawful use (including being under the influence) or possession of
illegal drugs on the Company’s premises or while performing the Executive’s
duties and responsibilities under this Agreement.

Prior
to a termination pursuant to Section 4(a) (iii), the Company shall
conduct a reasonable investigation to determine, based on information
reasonably available to the Company, whether Cause for termination exists.

(d)         “Company” shall
have the meaning set forth in the preamble.

(e)          “Compensation
Committee” means the Compensation Committee of the Board.

(f)            “Date of  Termination”
shall mean (i) if the Executive’s employment is terminated by his death, the
date of his death; (ii) if the Executive’s employment is terminated pursuant to
Section  4(a)(ii) — (vi)
either the date indicated in the Notice of Termination or the date specified by
the Company pursuant to Section 4 (b) whichever is earlier; (iii) if the
Executive’s employment is terminated pursuant to Section 4(a)(vii) or Section
4(a)(viii), the expiration of the then-applicable Term.

(g)         “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 l2-month period as a
result of incapacity due to mental or physical illness which is determined to
be reasonably likely to extend beyond the completion of the Term and 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). A Disability shall not be “incurred”
hereunder until, at the earliest, the last day of the sixth month of such
absence.

(h)         “Executive” shall
have the meaning set forth in the preamble.

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

1.               failure of the
Company to continue the Executive in the position of Senior Vice President and
Chief Financial Officer;

2.               the Company’s
material breach of this Agreement;

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; or

4.               failure of the
Company to make any payment or provide any benefit in accordance with this
Agreement.

 2
 

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

1.                    the Executive
provides the Company with at least 30 days prior written notice of his intent
to resign for Good Reason; and

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

(k) “Inventions”
shall have the meaning set forth in Section 6(d).

(l)  “Non-Union Bonus Plan” shall have the
meaning set forth in Section (3) (b).

(m) “Notice of  Termination”
shall have the meaning set forth in Section 4 (b)

(n)”Term”  shall have the meaning set
forth in Section 2 (b).

2.             Employment.

(a)          The Company shall employ the Executive and
the Executive shall enter the employ of the Company, for the period set forth
in Section 2(b), in the position set forth in Section 2(c), and
upon the other terms and conditions herein provided.

(b)         The initial term of employment under this
Agreement (the “Initial Term”) shall be for the period beginning on the
Effective Date of this Agreement and ending on the third anniversary there of,
unless earlier terminated as provided in Section 4. The employment term
shall automatically be extended for successive one-year periods (“Extension
Terms” and, collectively with the Initial Term, the “Term”) unless
either party gives notice of non-extension to the other no later than 90 days
prior to the expiration of the then-applicable Term.  Notwithstanding
the foregoing, Executive will be an employee at-will of the Company.  The Company may terminate Executive’s
employment at any time for any lawful reason, at its discretion.  Likewise, Executive may terminate his
employment with the Company at any time for any reason by giving the Company
30-days advance written notice.

(c)          Position and Duties.
The Executive shall serve as Senior Vice President & Chief Financial
Officer of the Company and shall have the authorities, duties and
responsibilities customarily commensurate with such position and such
additional responsibilities, duties and authority, as may from time to time be
reasonably assigned to the Executive by the Chief Executive Officer or his
designee. The Executive shall report to the Chief Executive Officer. The
Executive shall devote his full working time, attention and efforts to the
business and affairs of the Company. The Executive will be knowledgeable of and
comply with the Company’s rules and policies as adopted by the Company from
time to time. During the Term, it shall not be a violation of this Agreement
for the Executive to (i) serve
on industry trade, civic or charitable boards or committees; (ii) deliver
lectures or fulfill speaking engagements; or (iii) manage personal investments,
as long as such activities do not materially interfere with the performance of
the Executive’s duties and responsibilities. The Executive shall be permitted
to serve on for-profit corporate boards of directors and advisory committees if
approved in 

 3
 

advance by the Board,
which approval shall not unreasonably be withheld. In addition, Executive shall
be permitted to fulfill obligations under the terms and conditions of his
services agreement as previously disclosed to the Company as long as it does
not interfere with Executive’s duties or responsibilities.

3.             Compensation and Related Matters.

(a)          Annual Base Salary.
During the Term, the Executive shall receive a base salary at a rate of
$312,000 per annum, which shall be paid in accordance with the customary
compensation practices or policies of
the Company (the “Annual Base Salary”). 
Annual Base Salary may be increased, but not decreased, from time to
time by the Board.  Paydays are expected to be every other Friday (normally 26 pay days a year).  Executive’s paycheck shall be delivered to Executive
or made available to Executive on such dates. 
If a payday falls on a holiday or weekend, Executive may pick up his
paycheck on the weekday immediately preceding the payday.

(b)         Annual Performance
Bonus. During the Term, the Executive will participate in an annual
performance-based bonus plan (“Non-Union Bonus Plan”) established by the
Compensation Committee at a target level of 75% of Annual Base Salary (“Target
Level”). Such bonus shall be payable at such time as bonuses are paid to other
senior executive officers who participate therein. The amount of the Executive’s
annual bonus payable pursuant to such plan shall be determined with respect to each of the Company’s fiscal years
that ends during the Term.  The 2007
financial targets are set forth in Exhibit  A.

(c)          Equity  Participation.
During the Term, the Executive shall be entitled to participate in the Stock
Option Plan of the Company and shall be granted an option to purchase a
percentage of the common stock of Hawaiian Telcom Holdco, Inc. (“Common
Stock”) The Executive shall receive an option covering that number of
shares as would produce a pre-tax target option value of $4,000,000.00 [four
million dollars] at such specified future date as is determined by the Company,
if as of that date an investment in Hawaiian Telcom Holdco, Inc. achieved a
specified rate of return as determined by the Company.  The grant of stock options shall be governed
by the terms of the Stock Option Plan and Stock Option Agreement (similar to
the form attached as Exhibit  A). It is expressly understood that
the Executive’s entitlement to participation in the Stock Option Plan is not a
guarantee that the Option referenced herein shall attain any particular value
in the future.

(d)         Benefits. The
Executive shall be entitled to participate in all employee benefit plans,
programs and arrangements of the Company which are applicable to the senior officers
of the Company at a level commensurate with the Executive’s position.

(e)          Relocation
Expenses. In accordance with
the Company’s applicable relocation plans and policies, the Company shall
reimburse the Executive for any of the 

 4
 

following
expenses reasonably incurred by the Executive in connection with his
move from North Carolina to Hawaii: 
travel (including without limitation up to two house hunting trips) and similar related moving expenses and
costs of packing, unpacking and transporting the personal effects of the
Executive and his family, including transportation of up to two automobiles,
from the Executive’s current residence in North Carolina to Hawaii.  As a departure from policy, the Executive
shall have 18 months to complete his relocation to Hawaii.  In the event that the Executive’s employment
shall terminate for any reason other than Cause prior to the second anniversary
of the Effective Date, the Company shall reimburse the Executive for all
relocation expenses (as set forth and in accordance with this paragraph)
incurred by the Executive due to the Executive’s relocation, provided said
relocation is to North Carolina. With respect to any reimbursements paid to the
Executive under this paragraph which are taxable to the Executive, the
Executive shall be entitled to receive an additional payment from the Company
in an amount such that, after payment by the Executive of all income taxes
imposed on the reimbursements and the additional payment, the Executive would
retain an amount equal to such reimbursements.

(f)            Expenses.
During the Term, the Company shall reimburse the Executive for all reasonable
travel and other business expenses incurred
by him in the performance of his duties to the Company in accordance with the
Company’s expense reimbursement and travel policies.

(g)         Housing  Allowance.
During the Term, the Company shall pay the Executive a reasonable housing allowance
at a rate of $5,250 per month, as determined based on the Company’s good faith,
independent verification and analysis of the Executive’s housing requirements
and needs and subject to applicable withholding taxes. Such allowance shall be
paid periodically, in accordance with the Company’s policies and procedures and
may be applied to pay temporary lodging expenses in Hawaii.  With respect to any such allowance paid to
the Executive under this Section 3 (g) which is taxable to the
Executive, the Executive shall be entitled to receive an additional payment from the Company in an amount such
that, after payment by the Executive of all income taxes imposed on the housing
allowance and the additional payment, the Executive would retain an amount
equal to such housing allowance.

(h)         Personal Travel
Expenses.  During the Term, the Company
shall reimburse the Executive for the reasonable cost of business class
roundtrip airline tickets from Hawaii to the mainland United States for the
Executive and his spouse for up to two personal trips per year.

 (h)      Vacation. During the Term, the Executive
shall be entitled to no less than three weeks paid vacation for each completed
12 month period of service.  Any vacation
shall be taken at the reasonable and mutual convenience of the Company and the
Executive. Paid vacation that has not been taken by Executive during the twelve
month period following the period in which it is earned shall carry over to any
subsequent period up to a maximum accumulated six weeks. Vacation will 

 5
 

be accrued depending on
month of hire for the first year of employment per the Company vacation policy.

4.             Termination.

The Executive’s employment may be terminated by the
Company or the Executive, as applicable, without any breach of this Agreement under
the following circumstances:

(a)          Circumstances.

(i)                                     Death.
The Executive’s employment shall terminate upon his death.

(ii)                                  Disability.
If the Executive has incurred a Disability, the Company may give the Executive
written notice of its intention to terminate the Executive’s employment. In
that event, the Executive’s employment with the Company shall terminate
effective on the 30th day after
receipt of such notice by the Executive, provided that within the 30 days after
such receipt, the Executive shall not have returned to full-time performance of
his duties.  This Section 4 (a) (ii)
shall be construed in a manner consistent with the requirements of the
Americans With Disabilities Act and Hawaii Employment Practices law.

(iii)                               Termination
for  Cause. The Company may terminate the Executive’s employment
for Cause.

(iv)                              Termination
without Cause. The Company may terminate the Executive’s employment
without Cause.

(v)                                 Resignation
for Good Reason. The Executive may resign his employment for Good Reason.

(vi)                              Resignation
without Good  Reason. The Executive may resign his employment
without Good Reason.

(vii)                           Non-extension
of Term by the Company. The Company may give notice of non-extension to the
Executive pursuant to Section 2(b).

(viii)                        Non-extension
of Term by the Executive. The Executive may give notice of non-extension to
the Company pursuant to Section  2(b).

(b)         Notice of  Termination.
Any termination of the Executive’s employment by the Company or by the
Executive under this Section 4 (other than termination pursuant to
paragraph (a)(i) (death) shall be communicated by a written notice to the other
party indicating the specific termination provision in this Agreement relied
upon and specifying a Date of Termination which, if submitted by the Executive,
shall be at least 30 days following the date of such notice (a “Notice of
Termination”) provided, however, that the Company may, in its sole
discretion, change the Date of Termination to any date following the Company’s
receipt of 

 6
 

the Notice of
Termination. A Notice of Termination submitted by the Company may provide for a
Date of Termination on the date the Executive receives the Notice of
Termination, or any date thereafter elected by the Company in its sole
discretion. The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance that contributes to a showing of
Cause or Good Reason shall not waive any right of the Executive or the Company
or preclude the Executive or the Company from asserting such fact or circumstance
in enforcing the Executive’s or the Company’s rights.

(c)          Company Obligations Upon Termination. Upon termination of the Executive’s
employment, the Executive (or the Executive’s estate) shall be entitled to
receive a lump sum equal to the Executive’s Annual Base Salary through the Date
of Termination not theretofore paid, any bonus if declared or earned but not
yet paid for a completed fiscal year, any expenses owed to the Executive, any
accrued vacation pay owed to the Executive, and any amount arising from the
Executive’s participation in, or benefits under any employee benefit plans,
programs or arrangements, which amounts shall be payable in accordance with the
terms and conditions of such employee benefit plans, programs or arrangements.

5.             Severance Payments.

(a)          Termination for
Cause.  Resignation without Good Reason
or upon Non-extension by the Executive. 
If the Executive’s employment shall terminate pursuant to sections 4(a)
(iii) for Cause, or Section 4(a) (vi) without Good Reason, or Sections 4(a)
(viii) due to Non-extension of the Agreement by the Executive, 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 Termination and otherwise in accordance with the Company’s
regular payroll practice, 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 Termination;
and

(ii)          a prorated amount of the
Executive’s annual bonus based on the Company’s year-to-date performance
through the Date of Termination in relation
to the performance targets set forth in the Non-Union Bonus Plan (such amount to be determined in
good faith by the Compensation Committee).

 7
 

(c)          Termination without
Cause or Resignation for Good Reason. 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),
the Company shall, subject to the Executive’s execution of a general waiver and
release of claims acceptable to the Company:

(i)             Continue to pay, in
accordance with normal payroll practices, the Executive’s Annual Base Salary
for the period beginning on the Date of Termination and ending on the earliest
to occur of (A) the six month anniversary of the Date of Termination or (B) the
first date the Executive violates any covenant contained in Section 6 and

(ii)          Continue coverage (at
the Company’s expense) for the Executive and any dependents under the Company
group health benefit plan, for the period set forth in Section 5(c)(i).  The Company will pay the for Executive’s
COBRA medical and dental coverage premiums for the period set forth in Section
5 (c)(i). This benefit shall not include Exec-U-Care or similar
supplemental coverage policies for senior executives.

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

6.             Restrictive Covenants.

(a)          Non-Compete.  Executive acknowledges that by virtue of his
position with the Company, he will develop considerable expertise in the
business of the Company.  During
Executive’s employment with the Company and for a period of 365 days following
the date of the Executive’s termination of employment for any reason (the “Non-Competition
Period”), the Executive shall not directly or indirectly engage in, have any
equity interest in, or manage or operate any person, firm, corporation,
partnership or business (whether as director, officer, employee, agent,
representative, partner, security holder, consultant or otherwise) that engages
in any business that competes with any telecommunications business of the
Company or any entity owned by the Company anywhere in the State of Hawaii
provided, however, that the Executive shall be permitted to acquire a passive
stock or equity interest in such a business provided the stock or other equity
interest acquired is not more than five percent (5%) of the outstanding interest
in such business.  Nothing herein shall
prevent the Executive from engaging in any activity with, or holding any
financial interest in, a non-competitive division, subsidiary or affiliate of
an entity engaged in a business that competes with the Company so long as such
activities do not harm the Company.

(b)         Non-Solicitation of Employees and Customers.  During the Non-Competition Period, the
Executive will not and will not permit any of his associates to, directly or
indirectly, recruit or otherwise solicit or induce any non-clerical employee,
customer, subscriber or supplier of the Company to terminate, or otherwise
change its relationship with the Company, or establish any relationship with
the Executive or any of his associates for any business purpose that is
prohibited by subsection (a) above. 
Nothing herein shall prevent the Executive from serving as a reference.

 

 8

(c)          Confidentiality.  The Executive shall, in perpetuity, maintain
in confidence and shall not directly, indirectly or otherwise, use,
disseminate, disclose or publish, or use for his benefit or the benefit of any
person, firm, corporation or other entity any confidential or proprietary
information or trade secrets of or relating to the Company, including, without
limitation, information with respect to the Company’s operations, processes,
products, inventions, business practices, finances, principals, vendors,
suppliers, customers, potential customers, marketing methods, costs, prices,
contractual relationships, regulatory status, compensation paid to employees or
other terms of employment, or deliver to any person, firm, corporation or other
entity any document, record, notebook, computer program or similar repository
of or containing any such confidential or proprietary information or trade
secrets.  The parties hereby stipulate
and agree that as between them the foregoing matters are important, material and
confidential proprietary information and trade secrets and affect the
successful conduct of the businesses of the Company (and any successor or
assignee of the Company).   The
Executive may respond to a lawful and valid subpoena or other process but shall:  (i) give the Company the earliest reasonably
possible notice thereof, (ii) as much reasonably in advance of the return date
as possible, make available to the Company and its counsel the documents and
other information sought, and (iii) reasonably assist (the “Assistance”) such
counsel in resisting or otherwise responding to such process.  The Company shall reimburse Executive for all
reasonable expenses he incurs in providing such Assistance.  Notwithstanding Section 6(c), the Executive
may use or disclose information that is public knowledge.

(d)         Inventions.  All rights to discoveries, inventions,
improvements and innovations (including all data and records pertaining
thereto) directly related to the Company’s business, whether or not patentable,
copyrightable, registrable as a trademark, or reduced to writing, that the
Executive may discover, invent or originate during the Non-Competition Period,
either alone or with others and whether or not during working hours or by the
use of the facilities of the Company (“Inventions”), shall be the
exclusive property of the Company. The Executive shall promptly disclose all
Inventions to the Company, shall execute at the request of the Company any
assignments or other documents the Company may deem necessary to protect or
perfect its rights therein, and shall assist the Company, at the Company’s
expense, in obtaining, defending and enforcing the Company’s rights therein.
The Executive hereby appoints the Company as his attorney-in-fact to execute on
his behalf any assignments or other documents deemed necessary by the Company
to protect or perfect its rights to any Inventions.

(e)          Non-Disparagement.  During the Non-Competition Period, the
Executive shall not disparage the Company or any of its affiliates, any of their
respective products or practices, or any of their respective directors,
officers, agents, employees, representatives, shareholders, members or
affiliates, either orally or in writing.

 9
 

(f)            Interpretation.  The Executive and the Company acknowledge and
agree that the time, scope, geographic area and other provisions of the
covenants set forth herein have been specifically negotiated by sophisticated
parties and that such provisions are reasonable under the circumstances.  The parties further agree that if, despite
the foregoing acknowledgement, a court or other tribunal of competent
jurisdiction holds that any of the restrictions of the covenants set forth
herein are unenforceable, the maximum restrictions of time, scope or geographic
area reasonable under the circumstances, as determined by such court or
tribunal, shall be substituted for any such restrictions held
unenforceable.  The provisions of this
Agreement shall survive the termination of Employee’s employment with the
Company.

(g)         Injunctive Relief.   Executive acknowledges and agrees that that
a breach of any of the covenants contained in this Agreement will cause
irreparable damage to the Company and its goodwill, the exact amount of which
will be difficult or impossible to ascertain, and that the remedies at law for
any such breach will be inadequate. 
Accordingly, the Executive agrees that in the event of a breach of any
of the covenants contained in this Agreement, in addition to any other remedy
which may be available at law or in equity, the Company will be entitled to
specific performance and injunctive relief.

7.             Assignment and Successors.

The Company may assign
its rights and obligations under this Agreement to any entity,    including any successor to all or
substantially all the assets of the Company, by merger or otherwise, and may
assign or encumber this Agreement and its rights hereunder as security for
indebtedness of the Company and its affiliates, provided said successor entity
assumes all of the obligations of the Company hereunder. The Executive may not
assign his rights or obligations under this Agreement to any individual or
entity, except his estate upon his death.

8.             Governing Law.

This Agreement shall be,
interpreted and enforced in accordance with the laws of the State of Hawaii and,
where applicable, the laws of the United States.

9.             Notices.

Any
notice, request, claim, demand, document and other communication hereunder to
any party shall be effective upon receipt (or refusal of receipt) and shall be
in writing and delivered personally or sent by telex, telecopy, electronic
mail, overnight courier
service or certified or registered mail, postage prepaid, as follows:

(a)          If to the Company:

Hawaiian Telcom

1177 Bishop Street

Honolulu, HI 96813
 Fax:    (808)
546-8955
 Attn:  Michael
S. Ruley

 10
 

(b)         If to the Executive:

Paul H. Sunu, at his last, known address.

(c)          or at any other address
as any party shall have specified by notice in writing to the other party.

10.           Counterparts.

This Agreement may be
executed in several counterparts, each of which shall be deemed   to be an original, but all of which together
will constitute one and the same Agreement.

11.           Entire Agreement.

The terms of this
Agreement and the other agreements and instruments contemplated hereby or
referred to herein (collectively the “Related Agreements”) are intended
by the Parties to be the final expression of their agreement with respect to
the employment of the Executive by the Company and may not be contradicted by
evidence that attempts to modify the express terms of this Agreement. The
parties further intend that this Agreement and the Related Agreements shall
constitute the complete and exclusive statement of their terms and that no
extrinsic evidence whatsoever may be introduced in any judicial, arbitral,  administrative, or other legal proceeding to
vary the terms of this Agreement and the Related Agreements.

12.           Amendments; Waivers.

This Agreement may not be modified, amended, or terminated except by
an instrument in writing, signed by the Executive and a duly authorized
officer of Company. By an instrument in writing similarly executed, the
Executive or a duly authorized officer of the Company may waive compliance by
the other party with any provision of this Agreement provided; however, that
such waiver shall not operate as a waiver of, or estoppel with respect to, any
other contractual term or subsequent breach. No failure to exercise or delay in
exercising any right under this Agreement may be construed as waiver of that
right.

13.           No Inconsistent Actions.

The parties shall not
voluntarily undertake or fail to undertake any action or course of action
inconsistent with the provisions or essential intent of this Agreement. The
Parties intend to act in a fair and reasonable manner with respect to the
interpretation and application of this Agreement.

 11
 

14.           Construction.

This Agreement shall be
deemed drafted equally by both parties. Its language shall be construed as a
whole and according to its fair meaning. Any presumption or principle that the
language is to be construed against any party shall not apply. The headings in
this Agreement are only for convenience and are not intended to affect
construction or interpretation. Any references to paragraphs, subparagraphs,
sections or subsections are to those parts of this Agreement, unless the
context clearly indicates to the contrary.

15.           Arbitration.

Any dispute or
controversy between the Parties arising under or in connection with this
Agreement or Executive’s hire, employment, or termination from employment shall
be settled exclusively by arbitration, conducted before an arbitrator in Hawaii
in accordance with the employment rules of the American Arbitration Association
then in effect. Judgment may be entered on the arbitration award in any court
having jurisdiction, provided,  however, that the Company shall be
entitled to seek a restraining order or injunction in any court of competent
jurisdiction to prevent any continuation of any violation of the Agreement and
the Executive hereby consents that such restraining order or injunction may be
granted without requiring the Company to post a bond. Only individuals who are
(i) lawyers engaged in the practice of law; and (ii) on the AAA register of
arbitrators shall be selected as an arbitrator. Within 20 days of the closure
of the arbitration record, the arbitrator shall prepare written findings of
fact and conclusions of law. It is mutually agreed that the written decision of
the arbitrator shall be valid, binding, final and non-appealable, provided
however, that the parties agree that the arbitrator shall not be empowered to
award punitive damages against any party to such arbitration in connection with
claims arising out of this Agreement. The arbitrator, as permitted by law,
shall require the non-prevailing party to pay the arbitrator’s full fees and
expenses or, if in the arbitrator’s opinion there is no prevailing party, the
arbitrator’s fees and expenses will be borne equally by the parties thereto. In
the event action is brought to enforce the provisions of this Agreement pursuant
to this Section 15, the non-prevailing parties shall be required to pay
the reasonable attorney’s fees and expenses of the prevailing parties to the
extent determined to be appropriate by the arbitrator, acting in its sole
discretion.

16.           Validity; Enforcement.

If any provision of this
Agreement is held to be illegal, invalid or unenforceable, such provision shall
be severable and this Agreement shall be construed and enforced as if such
provision had never comprised a portion of this Agreement; and the remaining
provisions of this Agreement shall remain in full force and effect.
Furthermore, in lieu of such illegal, invalid or unenforceable provision there
shall be added automatically as part of this Agreement a provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid and enforceable.

 12
 

17.           Withholding

The Company shall be
entitled to withhold from any amounts payable under this Agreement any federal,
state, local or foreign withholding or other taxes or charges which the Company
is required to withhold. The Company shall be entitled to rely on an opinion of
counsel if any questions as to the amount or requirement of withholding shall
arise.

18.           Warranty of Noninterference.

The
Executive warrants  that he has taken all
actions required under the terms of any
prior employment in order to terminate that employment and that the
provisions contained in  any prior
agreements with former employers, if
any, do not affect the Executive’s ability to carry out his
responsibilities on behalf of the Company. 
Executive warrants  that his  full compliance with this Agreement shall not
interfere with, breach, violate, or abridge any other contractual (express or
implied) legal or fiduciary obligation of Executive to any other person or
business organization including, without limitation, any duty of protection,
non-use or non-disclosure with respect to confidential or proprietary
information or trade secrets concerning any of Executive’s prior employers or
their employees, customers , prospective customers or providers.  Executive further represents and warrants
that he has not been induced by the Company to breach any existing contractual
relation in order to come to work for the Company.

19.           Indemnification and Insurance.

The Company shall
indemnify the Executive to the fullest extent permitted by the laws of the
State of Hawaii, as in effect at the time of the subject act or omission, and
he will be entitled to the protection of any insurance policies the Company may
elect to maintain generally for the benefit of its directors and senior
executive officers against all costs, charges and expenses incurred or
sustained by him in connection with any action, suit or proceeding to which he
may be made a party by reason of his being or having been a director, officer
or employee of the Company or any of its subsidiaries or his serving or having
served any other enterprise, plan or trust as a director, officer, employee or
fiduciary at the request of the Company (other than any dispute, claim or
controversy arising under or relating to this Agreement (except for this Section
19)). The provisions of this Section 19 shall survive any
termination of Executive’s employment or any termination of this Agreement.

(Acknowledgements on following page)

 13
 

20.           Employee Acknowledgement

The Executive
acknowledges that he has read and understands this Agreement, is fully aware of
its legal effect, has not acted in reliance upon any representations or
promises made by the Company other than those contained in writing herein, and
has entered into this Agreement freely based on his own judgment.

IN WITNESS WHEREOF, the parties have executed this
Agreement on the date and year first above written.

	
  

  	
   

  	
  Hawaiian
  Telcom Communications, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Michael S.
  Ruley

  	
   

  
	
   

  	
   

  	
  Michael S. Ruley

  
	
   

  	
   

  	
  Its Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Paul H. Sunu

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Paul H. Sunu

  	
   

  	
   

  
								

 

 14Exhibit 10.36

ICO Global Communications
(Holdings) Limited

11700 Plaza America
Drive, Suite 1010

Reston, Virginia
20190

April 19, 2006

Ms. Donna Alderman

138 Parkview Road

Pound Ridge, New York 10576

Dear Donna:

We are pleased
that you have agreed to continue as Executive Vice President, Strategy of ICO
Global Communications (Holdings) Limited under the terms of this letter
agreement. You will have the rights, powers, duties and obligations as
may be agreed upon from time to time. During the course of your employment
with ICO you will devote your full business time and efforts to ICO; provided,
that, nothing herein will prevent you from (i) participating in industry,
trade, professional, charitable and community activities, (ii) serving on
corporate, civic or charitable boards or committees as mutually agreed by us
and you, and (iii) managing your personal investments and affairs, in each
case so long as such activities do not conflict with ICO’s interests or
interfere with the performance of your responsibilities to ICO.

Base Salary and Annual
Bonus

Your current
annual salary is $500,000, less payroll taxes and required withholding, which
will be paid to you in regular intervals in accordance with ICO’s customary
payroll schedules for salaried employees, but in no event less frequently than
twice each month. This salary may be adjusted in the future in accordance
with ICO’s compensation practices. However, you may be considered for
additional restricted stock and/or stock options in the future if and when the Compensation
Committee of ICO’s Board considers such plans generally.

Employee Intellectual
Property Agreement

As a condition of
continuing employment, and in exchange for being given a written employment
letter agreement, you agree to continue to abide by the terms of the ICO
Employee Intellectual Property Agreement.

 1
 

Termination

Without Cause

If ICO terminates
your employment without Cause, as defined below, then you will be entitled to
the following:

·                    a lump sum
payment (less any required deductions) in an amount equal to (i) your
unpaid base salary through the date of termination, (ii) the value of your
vacation time not used as of the date of termination to the extent that such
vacation time has been accrued during the calendar year of termination, calculated
based upon your base salary at the date of termination, and
(iii) reimbursement of any reasonable business expenses reimbursable under
this letter, to the extent not theretofore reimbursed.

In addition, ICO
will provide you the following severance benefits on the condition that you
execute a separation agreement that contains a full release of claims, in a
form acceptable to ICO:

·                    continuation
of your base salary then in effect, payable in accordance with the normal
payroll practices of ICO in effect on the date of termination, for a period of
six (6) months (“Severance Period”); and

·                    in connection
with, and immediately prior the date of termination, ICO shall take steps
necessary to accelerate and deem immediately vested those options granted to you
under the Plan in which you would have vested had you remained actively
employed through the Severance Period and all restricted shares in which you
would have vested had you remained actively employed through the Severance
Period, at which point all other unvested options shall expire; provided,
however, this provision does not supersede any Change of Control provisions for
accelerated vesting of stock options under the Plan.

For Cause

ICO
may terminate your employment for Cause at any time upon written notice of
such termination to you setting forth in reasonable detail the nature of such
Cause. If ICO terminates your employment for Cause, or you resign, then you
will be entitled to a lump sum (less any required deductions) in an amount
equal to (i) your base salary through the date of termination,
(ii) the value of your vacation time not used as of the date of
termination to the extent that such vacation time has been accrued during the
calendar year of termination, calculated based upon your base salary at the
date of termination, and (iii) reimbursement of any reasonable business
expenses reimbursable under this letter, to the extent not theretofore
reimbursed. In addition, upon termination of your employment by ICO for Cause,
any options granted to you, notwithstanding any prior vesting, shall
automatically expire at the time ICO first notifies you of such termination.

 2
 

Definition of “Cause”

“Cause” means
dismissal for willful material misconduct or failure to discharge duties,
conviction or confession of a crime punishable by law (except minor
violations), the performance of an illegal act while purporting to act in ICO’s
behalf, or engaging in activities directly in competition or antithetical to
the best interest of ICO, such as dishonesty, fraud, unauthorized use or
disclosure of confidential information or trade secrets.

Definition of “Disability”

For purposes of
this Agreement, “Disability” will mean a medically diagnosed physical or mental
impairment that that renders you incapable (even with reasonable accommodation)
of performing the duties required under this Agreement for a period of time
that is reasonably expected to exceed 8 weeks. ICO, acting in good faith, will
make the final determination of whether you have a Disability and, for purposes
of making such determination, may require you to submit yourself to a
physical examination by a physician mutually-agreed upon by you and ICO.

Benefits; Vacation;
Expenses

You
may participate in and to receive benefits from all present and future
life, accident, disability, medical, pension and savings plans and all similar
benefits made available generally to executives of ICO. The amount and extent
of benefits to which you are entitled will be governed by the specific benefit
plan, as it may be amended from time to time.

You will accrue
four weeks of paid vacation per year or such longer period as may be
provided by ICO. Such vacation will be taken at such times and intervals as
will be determined by you, subject to the reasonable business needs of ICO. You
will not be entitled to defer more than two weeks’ vacation time not taken to a
later calendar year, and you cannot accumulate more than 25 days of accrued but
unused vacation time in the aggregate.

ICO will pay or
reimburse you promptly for all reasonable business expenses and other
disbursements incurred or paid by you in the performance of your duties and
responsibilities to ICO, including those incurred or paid in connection with
business related travel, telecommunications and entertainment, subject to
reasonable substantiation of such expenses by you in accordance with ICO’s
policies.

Arbitration of Claims

You hereby
acknowledge and agree that, except as provided below, all disputes concerning
your employment with ICO, the termination thereof, the breach by either party
of the terms of this letter or any other matters relating to or arising from
your employment with ICO will be resolved in binding arbitration in a
proceeding in Reston, Virginia, administered by and under the rules and
regulations of National Rules for the Resolution of Employment Disputes of
the American Arbitration Association. This means that the parties agree to
waive their rights to have such disputes or claims decided in court by a jury.
Instead, such disputes or claims will be resolved by an impartial AAA

 3
 

arbitrator. Both parties
and the arbitrator will treat the arbitration process and the activities that
occur in the proceedings as confidential.

The arbitration
procedure will afford you and ICO the full range of statutory remedies. ICO and
you will be entitled to discovery sufficient to adequately arbitrate any
covered claims, including access to essential documents and witnesses, as
determined by the arbitrator and subject to limited judicial review. In order
for any judicial review of the arbitrator’s decision to be successfully
accomplished, the arbitrator will issue a written decision that will decide all
issues submitted and will reveal the essential findings and conclusions on
which the award is based. The party that is not the substantially prevailing
party, which determination shall be made by the arbitrator in the event of
ambiguity, shall be responsible for paying for the arbitration filing fee and
the arbitrator’s fees.

Nothing contained
in this section will limit ICO’s or your right to seek relief in any court
of competent jurisdiction in respect of the matters set forth in the “ICO
Employee Intellectual Property Agreement.”  We specifically agree that
disputes under the “ICO Employee Intellectual Property Agreement” will not be
subject to arbitration unless both parties mutually agree to arbitrate such
disputes.

Employment At Will

By signing this
letter, you understand and agree that your employment with ICO will continue
at-will. Therefore, your employment can terminate, with or without Cause, and
with or without notice, at any time, at your option or ICO’s option, and ICO
can terminate or change all other terms and conditions of your employment, with
or without Cause, and with or without notice, at any time, in all cases subject
to the other terms and conditions of this letter. This at-will relationship
will remain in effect throughout your employment with ICO or any of its
subsidiaries or affiliates. The at-will nature of your employment, as set forth
in this paragraph, can be modified only by a written agreement signed by both
ICO’s Chief Executive Officer and you which expressly alters it. This at-will
relationship may not be modified by any oral or implied agreement, or by
any policies of ICO, practices or patterns of conduct.

Entire Agreement

This letter, any
stock option agreement between you and ICO, and the ICO Employee Intellectual
Property Agreement constitute the entire agreement, arrangement and
understanding between you and ICO on the nature and terms of your employment
with ICO. This letter agreement supersedes any prior or contemporaneous
agreement, arrangement or understanding on this subject matter, subject to the
sixth sentence in this paragraph regarding any stock option agreement between
you and ICO. By executing this letter as provided below, you expressly
acknowledge the termination of any such prior agreement, arrangement or
understanding. Also, by your execution of this letter, you affirm that no one
has made any written or verbal statement that contradicts the provisions of
this letter. In the event of any inconsistency between the terms contained in
this letter and the terms contained in any stock option agreement between you
and ICO,

 4
 

the terms contained in
this letter will control, and that the provisions regarding vesting or
termination contained in your stock option agreements will be superseded by the
provisions of this letter to the extent of any conflict. In addition, the
noncompetition and other covenants contained in the ICO Employee Intellectual
Property Agreement will also supersede the provisions of any other similar
covenant contained in your stock option agreement to the extent of any
conflict. We hope that you will accept this offer and continue to work with us.

	
  

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
  ICO Global Communications

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ J. Timothy Bryan

  
	
   

  	
   

  	
  Name: J. Timothy Bryan

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  Signature of
  Acceptance:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Donna
  Alderman

  	
   

  	
   

  
	
  Donna Alderman

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 4.1.2006

  	
   

  	
   

  

 

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]