Exhibit 10.1






Exhibit 10.1




INDEMNIFICATION AGREEMENT




     This Indemnification Agreement (this “Agreement”) is made and entered into as
of July 14, 2008, by and among Horizon Lines, Inc., a Delaware corporation
(“Parent”), Horizon Lines Holding Corporation, a Delaware corporation
(“HLHC”; together with Parent, the “Companies”), and                     
(“Indemnitee”).



WITNESSETH THAT:




     WHEREAS, highly competent persons have become more reluctant to serve corporations as
directors, officers, or in other capacities unless they are provided with adequate protection
through insurance or adequate indemnification against inordinate risks of claims and actions
against them arising out of their service to and activities on behalf of such corporations;



     WHEREAS, Parent is the sole stockholder of HLHC;



     WHEREAS, in the case of each Company, the Certificate of Incorporation and/or Bylaws of such
Company (as amended, the “Fundamental Documents”) require indemnification of the officers
and directors of such Company and certain other persons;



     WHEREAS, Indemnitee may also be entitled to indemnification pursuant to the General
Corporation Law of the State of Delaware, as such may be amended from time to time (the
“DGCL”);



     WHEREAS, in the case of each Company, the Fundamental Documents of such Company and the DGCL
expressly provide that the indemnification provisions set forth therein are not exclusive, and
thereby contemplate that contracts may be entered into between such Company and members of the
board of directors and officers of each such Company and other persons with respect to
indemnification;



     WHEREAS, the Board of Directors of each Company (each, a “Board”) has previously
determined that, in order to attract and retain qualified individuals, the Companies will maintain
on an ongoing basis, at their sole expense, liability insurance to protect certain persons serving
the Companies or any of their respective subsidiaries from certain liabilities;



     WHEREAS, the uncertainties relating to such insurance (including the risk of unavailability of
such insurance and of higher premiums) and to indemnification have increased the difficulty of
attracting and retaining such persons in the face of risks of expensive litigation;



     WHEREAS, the Board of each Company has determined that the increased difficulty in attracting
and retaining such persons is detrimental to the best interests of the stockholders of Parent and
that the Companies should act to assure such persons that there will be increased certainty of such
protection in the future;



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     WHEREAS, it is reasonable, prudent, and necessary for the Companies to obligate themselves
contractually to indemnify, and to advance expenses on behalf of, such persons to the fullest
extent permitted by applicable law so that they will serve or continue to serve one or more of the
Companies free from undue concern that they will not be so indemnified;



     WHEREAS, this Agreement is a supplement to and in furtherance of the Fundamental Documents of
each Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;



     WHEREAS, Indemnitee does not regard the protection available under the Companies’ Fundamental
Documents and insurance as adequate in the present circumstances, and may not be willing to
continue to serve as a director and or officer of any of the Companies, as the case may be, without
adequate protection, and the Companies desire Indemnitee to serve in such official capacity; and



     WHEREAS, Indemnitee is willing to continue to serve and to take on additional service for or
on behalf of the Companies, or any of them, on the condition that he be so indemnified.



     NOW, THEREFORE, in consideration of Indemnitee’s agreement to serve one or more of the
Companies in an official capacity after the date hereof, the parties hereto hereby agree as
follows:



     1. Indemnity of Indemnitee. The Companies shall, jointly and severally, indemnify and
hold harmless Indemnitee to the fullest extent permitted by the DGCL. In furtherance of the
foregoing indemnification, and without limiting the generality thereof:



          (a) Proceedings Other Than Proceedings by or in the Right of the any Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Section 0
if, by reason of his Covered Status (as hereinafter defined), Indemnitee is, or is threatened to be
made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding
by or in the right of any Company. Pursuant to this Section 0, Indemnitee shall be
indemnified, jointly and severally, by the Companies against all Expenses (as hereinafter defined),
judgments, penalties, fines, and amounts paid in settlement actually and reasonably incurred by
him, or on his behalf, in connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Companies, and with respect to any criminal Proceeding, had no
reasonable cause to believe Indemnitee’s conduct was unlawful.




          (b) Proceedings by or in the Right of any Company. Indemnitee shall be entitled to
the rights of indemnification provided in this Section 1(b) if, by reason of his Covered
Status, Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding
brought by or in the right of any Company. Pursuant to this Section 1(b), Indemnitee shall
be indemnified, jointly and severally, by the Companies against all Expenses actually and
reasonably incurred by Indemnitee, or on Indemnitee’s behalf, in connection with such Proceeding if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to




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be in or not opposed to the best interests of the Companies; provided, however, if the DGCL so
provides, no indemnification against such Expenses shall be made in respect of any claim, issue, or
matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to any
Company unless and to the extent that the Court of Chancery of the State of Delaware shall
determine that such indemnification may be made.




          (c) Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Covered Status, a party to and is successful, on the merits or otherwise, in any Proceeding,
he shall be indemnified to the maximum extent permitted by the DGCL against all Expenses actually
and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not
wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or
more but less than all claims, issues, or matters in such Proceeding, the Companies shall, jointly
and severally, indemnify Indemnitee against all Expenses actually and reasonably incurred by him or
on his behalf in connection with each successfully resolved claim, issue, or matter. For purposes
of this Section 1 and, without limitation, the termination of any claim, issue, or matter
in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue, or matter.




     2. Additional Indemnity. In addition to, and without regard to any limitations on,
the indemnification provided for in Section 1 hereof, the Companies shall, and hereby do,
jointly and severally indemnify and hold harmless Indemnitee against all Expenses, judgments,
penalties, fines, and amounts paid in settlement actually and reasonably incurred by him or on his
behalf if, by reason of his Covered Status, he is, or is threatened to be made, a party to or
participant in any Proceeding (including a Proceeding by or in the right of any Company), including
all liability arising out of the negligence or active or passive wrongdoing of Indemnitee. The
only limitation that shall exist upon the obligations of each Company pursuant to this Agreement
shall be that no Company shall be obligated to make any payment to Indemnitee that is finally
determined (under the procedures, and subject to the presumptions, set forth in Sections 6 and
7 hereof) to be unlawful.



     3. Contribution.



          (a) Whether or not the indemnification provided in Sections 1 and 2 hereof is
available, in respect of any threatened, pending or completed action, suit, or proceeding in which
the Companies are jointly liable with Indemnitee (or would be if joined in such action, suit, or
proceeding), the Companies shall pay, in the first instance, the entire amount of any judgment or
settlement of such action, suit, or proceeding without requiring Indemnitee to contribute to such
payment, and each Company hereby waives and relinquishes any right of contribution it may have
against Indemnitee with respect thereto. No Company shall enter into any settlement of any action,
suit, or proceeding in which such Company is jointly liable with Indemnitee (or would be if joined
in such action, suit, or proceeding) unless such settlement provides for a full and final release
of all claims asserted against Indemnitee.




          (b) Without diminishing or impairing the obligations of the Companies set forth in the
preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any
portion of any judgment or settlement in any threatened, pending or completed




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action, suit, or proceeding in which the Companies are jointly liable with Indemnitee (or
would be if joined in such action, suit, or proceeding), the Companies shall contribute to the
amount of expenses (including attorneys’ fees), judgments, fines, and amounts paid in settlement
actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative
benefits received by the Companies and all officers, directors, or employees of the Companies,
other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such
action, suit, or proceeding), on the one hand, and Indemnitee, on the other hand, from the
transaction from which such action, suit, or proceeding arose; provided, however, that the
proportion determined on the basis of relative benefit may, to the extent necessary to conform to
law, be further adjusted by reference to the relative fault of the Companies and all officers,
directors, or employees of the Companies other than Indemnitee who are jointly liable with
Indemnitee (or would be if joined in such action, suit, or proceeding), on the one hand, and
Indemnitee, on the other hand, in connection with the events that resulted in such expenses,
judgments, fines, or settlement amounts, as well as any other equitable considerations which
applicable law may require to be considered. The relative fault of the Companies and all officers,
directors, or employees of the Companies, other than Indemnitee, who are jointly liable with
Indemnitee (or would be if joined in such action, suit, or proceeding), on the one hand, and
Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree
to which their actions were motivated by intent to gain personal profit or advantage, the degree to
which their liability is primary or secondary, and the degree to which their conduct was active or
passive.




          (c) The Companies shall, jointly and severally, fully indemnify and hold Indemnitee harmless
from any claims of contribution which may be brought by officers, directors, or employees of the
Companies, other than Indemnitee, who may be jointly liable with Indemnitee.




          (d) To the fullest extent permissible under the DGCL, if the indemnification provided for in
this Agreement is unavailable to Indemnitee for any reason whatsoever, the Companies, in lieu of
indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for
judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement, and/or for
Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in
such proportion as is deemed fair and reasonable in light of all of the circumstances of such
Proceeding in order to reflect (i) the relative benefits received by the Companies and Indemnitee
as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the
relative fault of the Companies (and their respective directors, officers, employees and agents)
and Indemnitee in connection with such event(s) and/or transaction(s).




     4. Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of his Covered Status, a witness in any
Proceeding to which Indemnitee is not a party, he shall be indemnified, jointly and severally, by
the Companies against all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith.



     5. Advancement of Expenses. Notwithstanding any other provision of this Agreement,
the Companies shall advance all Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding by reason of Indemnitee’s Covered Status within thirty (30)



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days after the receipt by the Companies of a statement or statements from Indemnitee
requesting such advance or advances from time to time, whether prior to or after final disposition
of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred
by Indemnitee and shall include or be preceded or accompanied by an undertaking by or on behalf of
Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is
not entitled to be indemnified against such Expenses. Any advances and undertakings to repay
pursuant to this Section 5 shall be unsecured and interest free.



     6. Procedures and Presumptions for Determination of Entitlement to Indemnification.
It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as
favorable as may be permitted under the DGCL and public policy of the State of Delaware.
Accordingly, the following procedures and presumptions shall apply in the event of any question as
to whether Indemnitee is entitled to indemnification under this Agreement:



          (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Companies a
written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of each Company shall, promptly upon
receipt of such a request for indemnification, advise the Board of each such Company in writing
that Indemnitee has requested indemnification.




          (b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 6(a) hereof, a determination, if required by the DGCL, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case by one of the following four methods, which
shall be at the election of the Board of Parent: (1) by a majority vote of the Disinterested
Directors (as hereinafter defined), even though less than a quorum; (2) by a committee of
Disinterested Directors designated by a majority vote of the Disinterested Directors, even though
less than a quorum; (3) if there are no Disinterested Directors or if the Disinterested Directors
so direct, by Independent Counsel (as hereinafter defined) in a written opinion to the Board of
Parent, a copy of which shall be delivered to Indemnitee; or (4) if so directed by the Board of
Parent, by the stockholders of the Company.




          (c) If the determination of entitlement to indemnification is to be made by Independent
Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be selected as
provided in this Section 6(c). The Independent Counsel shall be selected by the Board of
Parent. Indemnitee may, within ten (10) days after such written notice of selection shall have
been given, deliver to the Companies, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in
Section 13 hereof, and the objection shall set forth with particularity the factual basis
of such assertion. Absent a proper and timely objection by Indemnitee, the person so selected by
the Board of Parent shall act as Independent Counsel. If a written objection is made and
substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and
until such objection is withdrawn or a court has determined that such objection is without merit.
If, within twenty (20) days after submission by Indemnitee of a written request for indemnification
pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected and not
objected to, either Parent or Indemnitee may petition the Court of Chancery of




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the State of Delaware or other court of competent jurisdiction for resolution of any objection
which shall have been made by Indemnitee to Parent’s selection of Independent Counsel and/or for
the appointment as Independent Counsel of a person selected by the court or by such other person as
the court shall designate, and the person with respect to whom all objections are so resolved or
the person so appointed shall act as Independent Counsel under Section 6(b) hereof. The
Companies shall pay any and all reasonable fees and expenses of Independent Counsel incurred by
such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the
Companies shall pay all reasonable fees and expenses incident to the procedures of this
Section 6(c), regardless of the manner in which such Independent Counsel was selected or
appointed.




          (d) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement. Anyone seeking to overcome this presumption shall have the
burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure
of any Company (including by its directors or independent legal counsel) to have made a
determination prior to the commencement of any action pursuant to this Agreement that
indemnification is proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by any Company (including by its directors or independent
legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that Indemnitee has not met the applicable standard of
conduct.




          (e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on
Indemnitee’s reliance on the records or books of account of an Enterprise (as hereinafter defined),
including financial statements, or on information supplied to Indemnitee by the officers of an
Enterprise in the course of their duties, or on the advice of legal counsel for an Enterprise or on
information or records given or reports made to an Enterprise by an independent certified public
accountant or by an appraiser or other expert selected with reasonable care by an Enterprise. In
addition, the knowledge and/or actions, or failure to act, of any director, officer, agent, or
employee of an Enterprise shall not be imputed to Indemnitee for purposes of determining the right
to indemnification under this Agreement. Whether or not the foregoing provisions of this
Section 6(e) are satisfied, it shall in any event be presumed that Indemnitee has at all
times acted in good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Companies. Anyone seeking to overcome this presumption shall have the burden
of proof and the burden of persuasion by clear and convincing evidence.




          (f) If the person, persons, or entity empowered or selected under Section 6 to
determine whether Indemnitee is entitled to indemnification shall not have made a determination
within sixty (60) days after receipt by the Companies of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a prohibition of such
indemnification under applicable law; provided, however, that such 60-day period may be extended
for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons, or
entity making such determination with respect to entitlement to indemnification in




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good faith requires such additional time to obtain or evaluate documentation and/or
information relating thereto; and provided, further, that the foregoing provisions of this
Section 6(f) shall not apply if the determination of entitlement to indemnification is to
be made by the stockholders pursuant to Section 6(b) hereof and if (A) within thirty (30)
days after receipt by the Companies of the request for such determination, the Board of Parent or
the Disinterested Directors, if appropriate, resolve to submit such determination to the
stockholders of Parent for their consideration at an annual meeting thereof to be held within 120
days after such receipt and such determination is made thereat, or (B) a special meeting of the
stockholders of Parent is called within thirty (30) days after such receipt for the purpose of
making such determination, such meeting is held for such purpose within 120 days after having been
so called and such determination is made thereat.




          (g) Indemnitee shall cooperate with the person, persons, or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such person,
persons, or entity upon reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any Independent Counsel, member of the Board of
Parent, or stockholder of Parent shall act reasonably and in good faith in making a determination
regarding Indemnitee’s entitlement to indemnification under this Agreement. Any costs or expenses
(including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the
person, persons, or entity making such determination shall be borne by the Companies (irrespective
of the determination as to Indemnitee’s entitlement to indemnification) and the Companies hereby,
jointly and severally, indemnify and agree to hold Indemnitee harmless therefrom.




          (h) The Companies acknowledge that a settlement or other disposition short of final judgment
may be successful if such settlement or other disposition permits a party to avoid expense, delay,
distraction, disruption, and uncertainty. In the event that any action, claim, or proceeding to
which Indemnitee is a party is resolved in any manner other than by adverse judgment against
Indemnitee (including settlement of such action, claim, or proceeding with or without payment of
money or other consideration), it shall be presumed that Indemnitee has been successful on the
merits or otherwise in such action, suit, or proceeding. Anyone seeking to overcome this
presumption shall have the burden of proof and the burden of persuasion by clear and convincing
evidence.




          (i) The termination of any Proceeding or of any claim, issue, or matter therein, by judgment,
order, settlement, or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement or required by the DGCL) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee
did not act in good faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Companies or, with respect to any criminal Proceeding, that Indemnitee
had reasonable cause to believe that his conduct was unlawful.




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     7. Remedies of Indemnitee.



          (a) In the event that (i) a determination is made pursuant to Section 6 hereof that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is
not timely made pursuant to Section 5 hereof, (iii) no determination of entitlement to
indemnification is made pursuant to Section 6(b) hereof within 90 days after receipt by the
Companies of the request for indemnification, (iv) payment of indemnification is not made pursuant
to this Agreement within ten (10) days after receipt by the Companies of a written request
therefor, or (v) payment of indemnification is not made within ten (10) days after a determination
has been made that Indemnitee is entitled to indemnification or such determination is deemed to
have been made pursuant to Section 6 hereof, Indemnitee shall be entitled to an
adjudication in an appropriate court of the State of Delaware, or in any other court of competent
jurisdiction, of Indemnitee’s entitlement to such indemnification. Indemnitee shall commence such
proceeding seeking an adjudication within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 7(a). The Companies shall
not oppose Indemnitee’s right to seek any such adjudication.




          (b) In the event that a determination shall have been made pursuant to Section 6(b)
hereof that Indemnitee is not entitled to indemnification, any judicial proceeding commenced
pursuant to this Section 7 shall be conducted in all respects as a de novo trial on the
merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under
Section 6(b).




          (c) If a determination shall have been made pursuant to Section 6(b) hereof that
Indemnitee is entitled to indemnification, the Companies shall be bound by such determination in
any judicial proceeding commenced pursuant to this Section 7, absent (i) a misstatement by
Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
misstatement not materially misleading in connection with the application for indemnification, or
(ii) a prohibition of such indemnification under the DGCL.




          (d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial
adjudication of his rights under, or to recover damages for breach of, this Agreement, or to
recover under any directors’ and officers’ liability insurance policies maintained by the
Companies, the Companies shall pay on his behalf, in advance, any and all expenses (of the types
described in the definition of Expenses in Section 13 hereof) actually and reasonably
incurred by him in such judicial adjudication, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, advancement of expenses or insurance recovery.




          (e) Each Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 7 that the procedures and presumptions of this Agreement are not
valid, binding, or enforceable and shall stipulate in any such court that such Company is bound by
all the provisions of this Agreement. The Companies shall, jointly and severally, indemnify
Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10)
days after receipt by the Companies of a written request therefore) advance, to the extent not
prohibited by the DGCL, such Expenses to Indemnitee, which are incurred by Indemnitee in connection
with any action brought by Indemnitee for indemnification or advance




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of Expenses from the Companies under this Agreement or under any directors’ and officers’
liability insurance policies maintained by the Companies, regardless of whether Indemnitee
ultimately is determined to be entitled to such indemnification, advancement of Expenses, or
insurance recovery, as the case may be.




          (f) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement to indemnification under this Agreement shall be required to be made prior to the final
disposition of the Proceeding.




     8. Non-Exclusivity; Survival of Rights; Insurance; Subrogation.



          (a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may at any time be entitled under the DGCL, the Fundamental
Documents of any Company, any agreement, a vote of stockholders, a resolution of directors, or
otherwise. No amendment, alteration, or repeal of this Agreement or of any provision hereof shall
limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or
omitted by such Indemnitee in his Covered Status prior to such amendment, alteration, or repeal.
To the extent that a change in the DGCL, whether by statute or judicial decision, permits greater
indemnification than would be afforded currently under the Fundamental Documents of any Company or
this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this
Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is
intended to be exclusive of any other right or remedy, and every other right and remedy shall be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
right or remedy.




          (b) To the extent that the Companies maintain an insurance policy or policies providing
liability insurance for persons of any category of Covered Status, Indemnitee shall be covered by
such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any persons of such category of Covered Status under such policy or policies. If, at
the time of the receipt of a notice of a claim pursuant to the terms hereof, the Companies have
director and officer liability insurance in effect, the Companies shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the procedures set forth in the
respective policies. The Companies shall thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such
proceeding in accordance with the terms of such policies.




          (c) In the event of any payment under this Agreement, the Companies shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Companies to bring suit to enforce such rights.




          (d) The Companies shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has




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otherwise actually received such payment under any insurance policy, contract, agreement, or
otherwise.




          (e) The Companies’ obligations to indemnify or advance Expenses hereunder to Indemnitee to the
extent of his or her Covered Status with respect to any Enterprise (other than any Company) shall
be reduced by any amount Indemnitee has actually received as indemnification or advancement of
expenses from such other Enterprise.




     9. Exception to Right of Indemnification. Notwithstanding any provision in this
Agreement, the Companies shall not be obligated under this Agreement to make any indemnity in
connection with any claim made against Indemnitee:



          (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance
policy or other indemnity provision, except with respect to any excess beyond the amount paid under
any insurance policy or other indemnity provision;




          (b) for an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of any of the Companies within the meaning of § 16(b) of the Securities
Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or




          (c) in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against any
Company or its directors, officers, employees or other indemnitees, unless the Board of Parent
authorized the Proceeding (or any part of any Proceeding) prior to its initiation.




     10. Duration of Agreement. All agreements and obligations of each Company contained
herein shall continue during the period that Indemnitee is serving in a Covered Capacity and for a
period of seven (7) years thereafter, and shall continue thereafter so long as Indemnitee shall be
subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of
his Covered Status, whether or not he is acting or serving in any Covered Capacity at the time any
liability or expense is incurred for which indemnification can be provided under this Agreement.
This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors (including any direct or indirect successor by purchase,
merger, consolidation, or otherwise to all or substantially all of the business or assets of any of
the Companies), assigns, spouses, heirs, executors, and personal and legal representatives.



     11. Security. Each Company, to the extent requested by Indemnitee and approved by the
Board of such Company, may at any time and from time to time provide security to Indemnitee for
such Company’s obligations hereunder through an irrevocable bank line of credit, funded trust, or
other collateral. Any such security, once provided to Indemnitee, may not be revoked or released
without the prior written consent of Indemnitee.



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     12. Enforcement.



          (a) Each Company expressly confirms and agrees that it has entered into this Agreement and
assumes the obligations imposed on it hereby in order to induce Indemnitee to serve one or more of
the Companies in an official capacity, and each Company acknowledges that Indemnitee is relying
upon this Agreement in continuing to serve such Company in such capacity.




          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof, including any
indemnification agreement that may have been entered into by and between any Company and Indemnitee
in connection with the Company’s initial public offering in September 2005.




     13. Definitions. For purposes of this Agreement:



          (a) “Covered Capacity” means the capacity, office, or other position (if any) in which
a person is serving by reason of his Covered Status.




          (b) “Covered Status” describes the status of a person (i) who is or was a director,
officer, employee, agent, or fiduciary of any Company, (ii) who, at the request of any Company, is
or was a director, officer, employee, agent, or fiduciary of any other corporation, partnership,
limited liability company, joint venture, trust, employee benefit plan, or other enterprise, or
(iii) who is or was a director, officer, employee, agent, or fiduciary of any other corporation,
partnership, limited liability company, joint venture, trust, employee benefit plan, or other
enterprise that is or was a direct or indirect subsidiary (whether wholly owned or otherwise) of
any Company at the time of such person’s service as such a director, officer, employee, agent, or
fiduciary.




          (c) “Disinterested Director” means a director of Parent who is not and was not a party
to the Proceeding in respect of which indemnification is sought by Indemnitee.




          (d) “Enterprise” shall mean (i) any Company, or (ii) any other corporation,
partnership, limited liability company, joint venture, trust, employee benefit plan, or other
enterprise of which Indemnitee is or was serving as a director, officer, employee, agent, or
fiduciary either (x) at the request of any Company or (y) that is or was a direct or indirect
subsidiary (whether wholly owned or otherwise) of any Company at the time of Indemnitee’s service
as such a director, officer, employee, agent or fiduciary.




          (e) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, participating, or being or preparing to be a witness in a
Proceeding. Expenses also shall include Expenses incurred in connection with any appeal resulting
from any Proceeding, including the premium, security for, and other costs relating to any cost
bond, supersedeas bond, or other appeal bond or its equivalent. Expenses,




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however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments
or fines against Indemnitee.




          (f) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) any Company or Indemnitee in any matter material to either
such person (other than with respect to matters concerning Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing any Company
or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Companies
shall pay the reasonable fees of the Independent Counsel referred to above and shall fully
indemnify such counsel against any and all Expenses, claims, liabilities, and damages arising out
of or relating to this Agreement or its engagement pursuant hereto.




          (g) “Proceeding” includes any threatened, pending, or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing, or any other actual, threatened, or completed proceeding, whether brought by or in the
right of any Company or otherwise and whether civil, criminal, administrative, or investigative, in
which Indemnitee was, is, or will be involved as a party or otherwise, by reason of the fact that
Indemnitee has Covered Status, by reason of any action taken by him or of any inaction on his part
while acting in a Covered Capacity, or by reason of the fact that he is or was serving in a Covered
Capacity, in each case whether or not he is acting or serving in any such Covered Capacity at the
time any liability or expense is incurred for which indemnification can be provided under this
Agreement; including one pending on or before the date of this Agreement, but excluding one
initiated by an Indemnitee pursuant to Section 7 hereof to enforce his rights under this
Agreement.




     14. Severability. The invalidity of unenforceability of any provision hereof shall in
no way affect the validity or enforceability of any other provision. Without limiting the
generality of the foregoing, this Agreement is intended to confer upon Indemnitee indemnification
rights to the fullest extent permitted by applicable laws. In the event any provision hereof
conflicts with any applicable law, such provision shall be deemed modified, consistent with the
aforementioned intent, to the extent necessary to resolve such conflict.



     15. Modification and Waiver. No supplement, modification, termination, or amendment
of this Agreement shall be binding unless executed in writing by each of the parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed to constitute or shall constitute
a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute
a continuing waiver.



     16. Notice By Indemnitee. Indemnitee shall promptly notify the Companies in writing
upon being served with or otherwise receiving any summons, citation, subpoena, complaint,
indictment, information, or other document relating to any Proceeding or matter which may be
subject to indemnification covered hereunder. The failure to so notify the Companies shall not
relieve the Companies of any obligations which they may have to



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Indemnitee under this Agreement or otherwise unless and only to the extent that such failure
or delay materially prejudices the Companies.



     17. Notices. All notices and other communications given or made pursuant to this
Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to
the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during
normal business hours of the recipient, and if not so confirmed, then on the next business day, (c)
five (5) days after having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier,
specifying next-day delivery, with written verification of receipt. All communications shall be
sent:



          (a) To Indemnitee, at the address set forth below the signature of Indemnitee to this
Agreement.




          (b) To Parent, at:



Horizon Lines, Inc.

4064 Colony Road, Suite 200

Charlotte, North Carolina 28211

Attention: General Counsel

Telecopy: 704-973-7008

Telephone: 704-973-7000;




          (c) To HLHC, at:



c/o Horizon Lines, Inc.

4064 Colony Road, Suite 200

Charlotte, North Carolina 28211

Attention: General Counsel

Telecopy: 704-973-7008

Telephone: 704-973-7000;



or to such other address as may have been furnished by a party hereto to the other parties hereto,
by like notice. For purposes of this Agreement, the term “business day” means any day other than a
Saturday or a Sunday or a day on which commercial banking institutions in the City of Charlotte,
State of North Carolina, are authorized by law to be closed.




     18. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
Agreement. This Agreement may also be executed and delivered by facsimile signature and in two or
more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.



     19. Headings, etc. The headings of the sections, paragraphs, and subparagraphs of
this Agreement are inserted for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction thereof. Unless the context of this Agreement otherwise
requires: (i) words of any gender or neuter shall be deemed to include the neuter and



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each other gender; (ii) words using the singular or plural number shall also include the
plural or singular number, respectively; (iii) the word “including” and words of similar import
when used in this Agreement shall mean “including, without limitation,” unless otherwise specified;
and (iv) “or” is not exclusive.



     20. Governing Law and Consent to Jurisdiction. This Agreement and the legal relations
among the parties shall be governed by, and construed and enforced in accordance with, the laws of
the State of Delaware, without regard to its conflict of laws rules. The Companies and Indemnitee
hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in
connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware
(the “Delaware Court”), and not in any other state or federal court in the United States of
America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of
the Delaware Court for purposes of any action or proceeding arising out of or in connection with
this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding
in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such
action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient
forum.



[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]




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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and
year first above written.



	 	 	 	 	 
	 	PARENT:


HORIZON LINES, INC.

 	 
	 	By:  	 	 
	 	 	Charles G. Raymond 	 
	 	 	Chief Executive Officer 	 
	 
	 	HLHC:


HORIZON LINES HOLDING CORP.

 	 
	 	By:  	 	 
	 	 	Charles G. Raymond 	 
	 	 	Chief Executive Officer 	 
	 



[SIGNATURE PAGE 1 OF 2 TO INDEMNIFICATION AGREEMENT]




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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and
year first above written.



	 	 	 
	 

	 	INDEMNITEE:
	 
	 	 
	 

	 	 
	 
	 	 






[SIGNATURE PAGE 2 OF 2 TO INDEMNIFICATION AGREEMENT]





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