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2006 Executive

Annual Incentive Plan

March 2006




 









 












2006 Executive Annual Incentive Plan



The performance goals for 2006 are based on the 2006 business plan approved by the Board of
Directors. These goals reflect the Board of Directors and CEO’s expectations for performance and
accountability of the leadership team.



For 2006, the goals will be comprised of six measures which are listed below with the weighting:





	 	•	 	Financial Objectives: 70%






	 	–	 	EPS: 40%
	 
	 	–	 	EBITDA: 30%






	 	•	 	Business Objectives: 20%






	 	–	 	Safety: 10%
	 
	 	–	 	SG&A: 5%
	 
	 	–	 	Working Capital: 5%






	 	•	 	Personal Business Goal: 10%




Three performance levels have been established for each measure, with a corresponding percentage of
the target award opportunity.





	 	•	 	Minimum performance (80% obtainment) pays 50% of the target award opportunity.
	 
	 	•	 	Expected performance (100% obtainment) pays 100% of the target award opportunity.
	 
	 	•	 	Superior performance (120% obtainment) pays 150% of the target award opportunity.




Some incentive can still be earned if you are close to, but fall short of the goals. Also, higher
incentives may be earned if goals are exceeded. Therefore, if actual performance falls between any
of the defined levels, the award opportunities will be calculated proportionately.




2006 Performance Goals Definitions




Financial Measures — 70%




     Earnings Per Share (EPS — 40% weighting)




	 	•	 	The definition of EPS is net income divided by the number of shares outstanding. EPS
is the most common way that public companies are measured.





     Earnings before interest, taxes, depreciation, and amortization (EBITDA — 30% weighting)




	 	•	 	EBITDA is a commonly used measure of cash flow from operations. Cash flow is critical
to our company in order for us to meet our debt covenants, make capital investments, pay
the interest on our debt, and begin to pay down our debt. Depreciation and amortization
are expenses of the business that relate to past investments (i.e., the purchase of
barges). Therefore, to determine how much cash is available, we add these expenses back to
our operating earnings.




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2006 Performance Goals Definitions Continued




Business Objectives — 20%



A portion of the incentive opportunity will be determined by performance on key measures of
strategy, operations, or people. For 2006, given we are in a goal development transition year as a
Company, we have provided targets and measures for Safety, SG&A and Working Capital.




     Safety (10% weighting)




	 	•	 	It is critical that we continue to provide a safe environment for all employees. In
2005, we experienced a unique level of performance with an incident rate of 2.19. We will
continue to work toward similar positive results in 2006. However, we have elected to
leave the target goal at 2.5 due to the potential increase of exposure resulting from more
aggressive production turns. Safety will be measured by the incident rate which is
defined as the number of recordable injuries × 200,000 divided by the number of employee
hours worked.





     Selling, General, & Administrative (SG&A — 5% weighting))




	 	•	 	This expense category is disclosed in the Company financial statements and will be
measured as a percent of total revenue. It represents our need to be more efficient and to
improve our profit margins.





     Working Capital (5% weighting)




	 	•	 	By managing our working capital, we generate cash to help pay down debt and pay for
investments. Working capital is measured by adding accounts receivable + inventory minus
accounts payable divided by revenue.





Personal Business Goal — 10%





	 	•	 	Each individual will select a goal from their 2006 department goals which must be
agreed upon between the individual and Supervisor and approved by the Compensation
Committee. There is no minimum threshold of achievement for this goal. The individual
must achieve a performance level of “expected” to receive a payout. If the goal is
exceeded, a percentage level of achievement equal to that achieved by the Financial
Measures will be awarded, if it is higher.




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Plan Administration




Eligibility Criteria





	 	•	 	Full-time salaried senior executive employees identified by the Compensation
Committee
	 
	 	•	 	Hire date on or before September 30, 2006
	 
	 	•	 	Employed by ACL or one of its subsidiaries at time the incentive awards are paid
	 
	 	•	 	Individual performance rated at a satisfactory level or higher





Award Calculations



The awards will be calculated based on the following formula:




     Actual Base Salary Earnings × Target Award Opportunity × Performance Score for Each Goal


Actual base salary earnings are the base compensation earned from January 1 through December
31. The overall performance score is the scores for each of the financial, business and personal
objectives multiplied by their weighting and added together.




Timing of Payment



Earned disbursement of the 2006 Bonus amounts will occur after the 2006 financial results have
been tabulated, E&Y has finished their audit and the Audit Committee has signed-off on the results
of the audit; estimated to be early February, 2007. Also, all payments must be approved in advance
by the Compensation Committee of the Board of Directors. In all events, bonus amounts will be paid
no later than December 31, 2007 with respect to the 2006 bonus program




Administration



The Compensation Committee of the Board of Directors has the full power, authority and
discretion to construe, interpret and administer this bonus program. The Compensation Committee may
delegate this authority to any appropriate person or persons and such delegates shall have all the
powers the Compensation Committee would have if it had acted itself. As a condition of eligibility
to participate in this bonus program, a participant must accept that all determinations of the
Compensation Committee or any of its delegates will be final, conclusive and binding.




Amendment



The Compensation Committee, in its sole discretion, may, at any time with or without notice,
amend, modify, suspend or terminate this bonus program, including the right to suspend or eliminate
some or all payments under this bonus program at any time.




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Assignment



Payments under this bonus program may not be assigned or alienated.




Applicable Law



This document shall be governed by the laws of the State of Indiana.




No Employment Rights



Nothing contained in this bonus program shall be construed as a contract of employment between
ACL or its subsidiaries and a participant or as a right of any participant to be continued in the
employment of ACL or its subsidiaries, or as a limitation of the right of ACL or its subsidiaries
to discharge any of its employees with or without cause.





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