Document:

Terminal Services Agreement Amendment No. 2

 Exhibit 10.14.1 
 TERMINAL SERVICES AGREEMENT AMENDMENT No. 2 
 THIS Amendment No. 2 is dated and effective
as of November 30, 2006 (“Amendment No. 2”) among HORIZON LINES OF ALASKA, LLC (“Horizon Alaska”), HORIZON LINES, LLC (together with Horizon Alaska, hereinafter referred to as “Carrier”) and APM TERMINALS NORTH
AMERICA INC. (“Contractor”). 
 RECITALS 
 A. Horizon and APMT entered into that certain Stevedoring and Terminal Services Agreement dated as of May 9, 2004, as amended by an Amendment No. 1 dated as of December 12, 2004 (“Amendment
No. 1”) (as amended, the “Terminal Agreement”). 
 B. The parties hereby intend to amend the Terminal Agreement as described below.

 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 
  

	1.	Definitions. All terms used herein, unless otherwise specified, shall have the meaning ascribed to them in the Terminal Agreement. 

  

	2.	Revise Section 3(a) of the Terminal Agreement to change the date from “December 10, 2007” to December 10, 2010. 

  

	3.	In Section 3(b) of the Terminal Agreement, as amended by Amendment No. 1, change the reference from “thirty” days to “ninety” days.

  

	4.	Section 6(a) of the Terminal Agreement is deleted in its entirety and replaced with the following: “[Intentionally left blank]”. 

  

	5.	Add the following as Section 8 (j): 

 “Contractor
shall not be required to begin vessel operations if the applicable terminal manager at that Terminal, after discussing the issue with the Vessel master, reasonably believes that safety violations or deficiencies exist relating to the Vessels, This
sentence will not preclude the terminal manager from terminating vessel operations on a temporary basis prior to discussing the issue with the Vessel master. After the terminal manager discusses the issue with the Vessel master, the Carrier shall
work diligently to cure such violation or deficiency. If corrected to the reasonable satisfaction of Contractor, then Contractor shall commence vessel operations.” 
  

 1 

	6.	Add the following as Section 8(k): 

 “Carrier
shall comply with applicable federal, state and local rules, regulations and laws. Carrier will be liable for all costs incurred by Contractor as a result of Carrier’s failure to comply with such rules, regulations and laws applicable to
Carrier.” 
  

	7.	Amend Section 10 as follows: 

  

	 	a.	Replace Section 10(b) in its entirety with the following: 

 “Contractor shall be liable for damage to or loss of cargo attributed to Contractor’s proportionate share of negligence that is proven; however Contractor’s liability to Carrier or any cargo interests shall be limited to the
liability of a carrier exercising all rights, protections and limitations of liability under the Carriage of Goods by Sea Act (“COGSA”) and the $500 per package limitation of COGSA, regardless of the amount of Carrier’s liability to
any person. If any person brings a claim against Contractor related to transport by Carrier (including the period prior or subsequent to loading or unloading to/from Carrier’s Vessels) in excess of the abovementioned limitations, then Carrier
shall hold Contractor harmless and indemnify and defend Contractor for any liability over and above the limitations of liability defenses stated above. Additionally Carrier shall maintain a Himalaya Clause its applicable Bill of Lading or contract
of affreightment that makes Contractor an express beneficiary of such document, by which all defenses, exceptions, limitations of liability and other rights of Carrier shall be extended to Contractor.” 
  

	 	b.	Delete Section 10(g) and insert “[reserved]” in place of the entire text. 

  

	8.	Replace Section 12(a) in its entirety with the following: 

 “(1) The Base Lift Rate for any Terminal shall be adjusted, as appropriate, by (A) any cost Contractor incurs resulting from the use of union labor utilized to provide services to Carrier (including without limitation, lashing),
whether such union labor is procured by a collective bargaining agreement or through third parties and regardless of whether such adjustment results from increases in man hour rates or increases or decreases in required manning used to provide
Carrier services, including without limitation increases in such costs resulting from assessments, benefit, health, retirement plans for such labor or membership in organizations involved in labor negotiations (“Labor Costs”),
(B) wharfage increases or decreases at Oakland and Los Angeles based on percentage changes in the Port of Oakland Tariffi/Schedule No. 2-A or the Port of Los Angeles Tariff/Schedule No. 4 or their successors, or in regards to Oakland,
also based on wharfage increases or decreases in any amended or future agreement between Contractor (or its affiliates) and the port authority and (C) for any increase in Contractor’s other costs (non-labor and non-wharfage related) not
detailed in Items (A) or (B) above that relate to providing services to Carrier, based on the Consumer Price Index-Urban (“CPI”) for the most recently published 12 months. Provided however that in respect of Item (C) only,
in no event will such increases exceed *** of the prior Base Lift Rate for such Terminal in any twelve month period. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

 2 

 (2) Carrier shall be responsible for increases
under Items (A) and (B) as soon as incurred by Contractor. Carrier shall be entitled to decreases under Item (B) as soon as it is effective as to Contractor. If Contractor does not bill Carrier for such increases when incurred then
Carrier shall remain responsible and Contractor may still bill Carrier for all such charges on a retroactive basis. If Contractor does not pass any decrease in (B) to Carrier when so required, then Contractor shall remain responsible to do so
and Contractor will continue to be responsible to pass on such decreases in (B) on a retroactive basis. Appendix V attached states the breakdown of the Base Lift Rate applicable to (A), (B), and (C) above, with the following revision:
regarding the Base Lift Rate for Elizabeth, the reference to “labor adjustment-***” shall be replaced with “labor adjustment-lashing ***; labor adjustment-other than lashing ***”. Item (C) will be applied for the West Coast
terminals annually on July 1st of each calendar year and for the East Coast/Gulf Terminals annually on October
1st of each calendar year. 
 (3) All other rates other than the Base Lift Rate listed in Appendix II shall be increased, as
appropriate, by any Labor Costs and for any increase in Contractor’s other costs (non-labor and non-wharfage related) not included as a Labor Cost that relate to providing services to Carrier, based on the Consumer Price Index-Urban
(“CPI”) for the most recently published 12 months. Carrier shall be responsible for such Labor Cost increases as soon as incurred by Contractor. Carrier shall be responsible for non-Labor Cost increases for the West Coast terminals
annually on July 1st of each calendar year and for the East Coast/Gulf Terminals annually on
October 1st of each calendar year. Provided however that in respect of non-Labor Cost items only, in no event
will such increases exceed *** of the prior rate for such Terminal in any twelve month period. 
 (4) Any adjustments proposed by either party
shall be submitted to the other party together with all necessary or appropriate supporting documentation available to such party detailing the basis for such adjustments. 
  

	9.	Replace Section 14(j)(i) in its entirety with the following: 

 Carrier shall comply with all federal, state and local environmental laws, rules and regulations that apply to Carrier and which relate to fuel quality, vessel emissions, hazardous substances, hazardous materials, hazardous wastes, and
petroleum products at the Terminals covered under this Agreement. 
  

	10.	Add the following at the end of Section 15: 

 “c.
The parties agree that neither party shall be liable hereunder for charges if the Contractor fails to bill for activity that occurred within one year from the date of the activity. The parties further agree that neither party shall be required to
return an overpayment to the other party if the party that overpaid fails to notify the other party within one year after the date of activity that resulted in such overpayment.” 

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

 3 

	11.	Replace Appendix II in its entirety with the attached revised Appendix II for each Terminal. 

  

	12.	Amendment No. 1 is null and void because its provisions are either incorporated in this Amendment or the revised Appendix II. 

  

	13.	No Other Modification. The Terminal Agreement is only modified as set forth herein and in all other respects remains in full force and effect. 

  

	14.	Governing Law. The validity, meaning and effect of this Amendment shall be determined in accordance with the Applicable law clause of the Terminal Agreement.

  

	14.	Counterparts. This Amendment may be executed in two counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument 

  

	16.	Severability. The parties hereto intend and believe that each provision in this Amendment No. 2 comports with all applicable local, state and federal laws and judicial
decisions. However, if any provision in this Amendment No. 2 is found by a court of law to be in violation of any applicable ordinance, statute, law, administrative or judicial decision, or public policy, and if such court should declare such
provision to be illegal, void or unenforceable as written, then such provision shall be given force to the fullest possible extent that the same is legal, valid and enforceable and the remainder of this Amendment No. 2 shall be construed as if
such provision was not contained therein. 

  

 4 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 as of the date set
forth above. 
  

					
	HORIZON LINES, LLC
		
	By:	 	/s/ Robert S. Zuckerman
		 	Its:	 	Vice President
		 	Name:	 	Robert S. Zuckerman
		 		 	    (please print)

  

					
	HORIZON LINES OF ALASKA, LLC
			
		 	By:	 	/s/ Robert S. Zuckerman
		 	Its:	 	Secretary
		 	Name:	 	Robert S. Zuckerman
		 		 	    (please print)

  

					
	APM TERMINALS NORTH AMERICA INC.
			
		 	By:	 	/s/ John N. Loepprich
		 	Its:	 	SR. V.P. & CFO
		 	Name:	 	JOHN N. LOEPPRICH
		 		 	    (please print)

 [Signature Page to Amendment No.2 to the Stevedoring and Terminal Services Agreement] 

 

 5 

 

 
 Elizabeth 
 Terminal Service for Horizon Lines 
 UNIVERSAL MARITIME FACILITY 
 Baseline Rates effective to September 30, 2006 
 The rates in this Appendix
effective on December 11, 2007 shall be the numbers listed below, provided however that such numbers are only baseline numbers and each shall be increased by the amount of the increases as described in Sections 6 (a), 6(b), 12(a), 12(b) and
12(c) of the Terminal Agreement dated as of May 9, 2004 (the “Original Agreement”) during the time period prior to December 11, 2007. 
 For example, if the rate item no. 1A for Elizabeth in the Original Agreement CPI/Labor increases on October 1, 2006 by 3 percent, then the *** baseline rate listed below shall be increased to ***. The subsequent increases in the
Original Agreement would also be applied to this rate through December 10, 2007. All rates in the below schedule would be adjusted in a similar manner based on their percentage increase in the Original Agreement. 
  

				
	 1.      A) Discharge or load – base rate -per marine lift
	  	***	 
		
	          B) Transshipment per move
	  	***	 
		
	          C) Shifting Cell to Cell within the same hatch
	  	***	 
		
	          D) Re-stowing container Cell to Dock to Cell
	  	***	 
		
	          E) Overheight unit lifted with overheight spreader (no wires)
	  	***	 per lift

 Rate includes straight-time stevedoring staff/gangs, normal container lashing/unlashing on vessel (excluding
detentions), crane rental, tractors during vessel operations, assisting in receiving and delivery, clerking and checking during vessel operations, weighing of export containers, cargo plan preparation, roadability check (labor only), visual seal
inspection, and load/empty cycle to/from vessel including TIR preparation. Standard operational procedure is a grounded operation with the exception of reefer, loaded tank containers and special hazardous. 
 Each vessel move (excluding shifts and heavy lifts) is allowed *** gate moves. Each month total gate moves that exceed the allowed number of gate moves, will 

 

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

 6000 Carnegie Blvd., Charlotte, NC 28209 
 704-571-5000 

 
be invoiced to the carrier as per item number 7 below. No credit will be given for unused gate moves. 
 The transshipment rate is based on a container discharging from a vessel or a barge and loading to a vessel or barge. Each container will be invoiced *** transshipment
moves. 
 Base lift rate item 1(A) and Transshipment rate 1 (B) to be discounted by *** percent from December 11, 2007 to December 10, 2008
and by *** percent from December 11, 2008 to December 10, 2010. 
 Lifting Bundles of Flat Racks/Chassis – 
  

	 	A.	If received at gate bundled then we will charge 

  

	 	a.	If can use standard spreader bar, charge will be *** base lift rate for load or discharge 

  

	 	b.	If requires wires to load/discharge, then will be charged per extra labor hourly lifting rates plus mounting or grounding charge 

  

	 	B.	If requested to be bundled/unbundled by Horizon Lines 

  

	 	a.	If can use standard spreader bar, charge will be the following: 

  

	 	i.	*** base lift rate for load or discharge 

  

	 	ii.	contract charge for bundling/unbundling 

  

	 	 iii.
	 mounting or grounding charge for the *** chassis/flat

  

	 	b.	If requires wires than charges will be the following: 

  

	 	i.	Per extra labor hourly lifting rates 

  

	 	ii.	Contract charge for bundling / unbundling 

  

	 	iii.	mounting or grounding charge for each chassis or flat 

  

	 	C.	If the contractor locks (or unlocks) and secures empty flatracks pierside and lifts to/from vessel as one unit, the carrier will be charged the base lift rate for each individual
flat loaded/discharged provided that the contractor follows the stow plan provided by the carrier with relation to the stowage of flatracks. (i.e. if 4 flats are locked together shore side and lifted as one unit to the vessel, the lift charge to the
carrier will be 4 x base lift rate) 

  

					
	2.	 	 (A)   Reefer Differential assessed to each loaded reefer for plug/unplug services, quality check at time of discharge /loading,
record keeping, administrative services. This rate does not include pre-tripping, labor to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for reefers received/delivered with no vessel
activity.
	  	***
per loaded reefer
			
		 	 (B)   Daily Reefer monitoring and electric charges per calendar day or portion thereof (Minimum one day charge)
	  	***
Daily charge

 First Calendar Day to receive a *** percent discount from stated rate. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 2
	  	 6000 Carnegie Blvd., Charlotte, NC 28209-4637
 Telephone: 704-571-2000     Fax: 704-571-4741
	  	

					
	3.	 	 Installing or removing Genset
	 	 – *** minutes at the applicable M and R man hour rate plus ***

		 	 Fueling Gensets
	 	 – *** minutes at the applicable M and R man hour rate

  

							
	 4.
	 	 A) Standby /guarantee per Gang per hour straightime
	  	 One Gang ***
	  	
		 		  	 Two Gangs ***
	  	
		 		  	 Three Gangs ***
	  	
				
		 	 B) Extra Labor/Heavy Lifts per Gang per hour straightime
	  	 One Gang ***
	  	
		 		  	 Two Gangs ***
	  	
		 		  	 Three Gangs ***
	  	
		 	 C) Detentions per Gang per Hour straightime
      (see appendix 1 for list of billable and non billable detentions)
	  	 One Gang ***
	  	
		 		  	 Two Gangs ***
	  	
		 		  	 Three Gangs ***
	  	
	 5.
	 	 Overtime Differentials per gang per hour
	  		  	
		 	 A) Overtime
	  	One Gang ***	  	
		 		  	 Two Gangs ***
	  	
		 		  	 Three Gangs ***
	  	
				
		 	 B) Double Time
	  	One Gang ***	  	
		 		  	 Two Gangs ***
	  	
		 		  	 Three Gangs ***
	  	

  

	6.	Overtime Gate Charges – extra labor plus equipment per items 12 and 14 below prorated between carriers based on percentage of moves utilizing gate outside standard terminal
gate hours. Holiday gates which are included in the base lift rate are stated on attached schedule. 

 Flat charge of ***
per hour to be charge for gate on Friday passed 1700 Current standard gate hours are 0600 to 1700 Monday through Friday. UMS reserves the right to adjust standard gate hours but not without the mutual consent of Horizon Lines, who can not
unreasonably object to such a change without conclusive evidence that UMS agrees support a negative financial impact to Horizon Lines. Horizon Lines agrees that UMS can change the opening gate hour from 0600 to 0700 without their objection. If the
terminal operator chooses to open during the lunch period or operate flex gates, there will be no extra charge to the carrier. Overtime gate charges also apply to ILA holidays Flat charge of *** per hour to be charge for receiving gate on
Friday from 1700. If terminal causes gate to go pass 1700 then no charge will be made from 1700 to 1800. 
  

							
	7.	 	Extra Gate Moves (exceeding the *** gate moves included per         	  	 ***/move
	  	

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 3
	  	 6000 Carnegie Blvd, Charlotte, NC 28209-4637
 Telephone: 704 -571-2000     Fax: 704 -571-4741
	  	

 vessel lift). Billing to be done on a calendar month basis. 
  

			
	 8.      Mounting/grounding –
	  	*** ST
		  	*** OT

 ** Subject to minimum labor guarantees 
 Mounting and Grounding will only be charged when performed outside of the normal throughput cycle. This includes but is not limited to digging out empty
containers by container number, for sale containers, off hire containers, containers moving to/from repair, unusual requests requiring restacking of full containers etc. Each container that is required to be handled within stack to carry out request
will be charged a mount and/or ground fee. Also, this would apply if there is an overall change by Horizon Lines in the mode of operation. This rate will include drayage of container within the terminal. In regards to For Sale and Off Hire
containers, if a trucker requests a specific container number, then Contractor will charge a mounting /grounding charge per move shifted/handled, excluding the move for the container delivered. In regards to For Sale and Off Hire containers, if a
tracker requests a specific container number, then Contractor will charge a mounting /grounding charge per move shifted/handled, excluding the move for the container delivered. 
 In addition, in the event that the Carrier changes its mode of operation or makes a special request to the Contractor not covered by this Agreement, in
either case, Contractor reserves the right to order a dedicated yard detail and charge Carrier at extra labor plus equipment rates. 
  

	9.	Miscellaneous Parts for Roadability -carrier to handle directly with m and r vendor. This is not applicable to Maersk owned chassis. 

  

	10.	Maintenance - carrier to handle directly with m and r vendor 

  

			
	 11.    Rail Drayage to/from Express Port
	  	*** one way
	 Port shuttle within Port Elizabeth/Port Newark
	  	*** one way

  

	12.	Equipment rental rates (when ordered by carrier)(excludes operator) 

  

			
	 - Top Loader
	  	*** per hour
	 - Yard Hustlers
	  	*** per hour
	 - Empty Handler
	  	*** per hour
	 - Transtainer
	  	*** per hour
	 - Bombcart
	  	*** per hour
	 - Container Crane
	  	*** per hour

  

			
	 13.    Wharfage Non Containerized Cargo
	  	 according to port authority tariff
 (current fine
schedule PA-10) See also
 item number 25.

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 4
	  	 6000 Carneige Blvd., Charlotte, NC 28209-4637
 Telephone: 704-571-2000     Fax: 704-571-4741
	  	

											
	 14.    Extra Labor Rates
	  	straighttime ***	  	overtime ***	  	doubletime ***	  		  	

  

								
	 15.    Stuffing and Stripping Rates
	  	per 20’ container	  	*	**	 	
		  	per 40’ container	  	*	**	 	
		  	POV’s per 20’ container	  	*	**	 	
		  	POV’s per 40’ container	  	*	**	 	
		  	Flatrack cargo per 20’ flat	  	*	**	 	
		  	Flatrack cargo per 40’ flat	  	*	**	 	

 CFS rates include drayage to/from on dock warehouse. Rate includes normal chocking and bracing but
does not include securing materials for flats or special securing of autos. Subject to on terminal Contractor’s warehouse being available. 
  

	16.	Line Handling per activity (ie two charges per call) 

  

			
		 	 *** straighttime

		 	 *** overtime (except from 2300 to 0600)

		 	 *** overtime 2300 to 0600

  

	17.	Full containers received over the road and redelivered without loading or discharging to or from vessel are not included in the *** gate moves or allowed mounting/grounding and will
be billed *** per container for receipt and redelivery of a container. (Excludes demurrage) 

  

	18.	Terminal Storage charges - 

  

					
		 	Storage of empty containers -	  	*** per unit per day

 Empty allowance will be determined by multiplying the carriers container lift volume each month times *** times
the number of days in the month. Excess empty container days over such allowed free days will be charged month at the following rate per container per day. 
 (free days = lifts x *** x days in period) 
 Notwithstanding the means of calculating Carrier’s empty allowance stated
above, the parties agree when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds the storage cap, Carrier will be required to present the respective terminal with an empty evacuation plan to reduce the number of
empties below the cap within a fourteen day period. Daily storage cap is equal to one percent of the Carrier’s previous year’s annual throughput. 
  

			
	 19.    Demurrage –
	 	Terminal Operator will bill, collect, and retain demurrage from carrier according to the terminal tariff. The only exception is that the Contractor shall grant Carrier *** business days freetime
for autoracks, pallet loads, and dunnage provided that Carrier provides a list of these containers to Contractor 48 hours prior to vessel’s arrival.

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 5
	  	 6000 Carneige Blvd., Charlotte, NC 28209-4637
 Telephone: 704-571-2000     Fax: 704-571-4741
	  	

	20.	Lashing/unlashing of breakbulk cargo on board vessel -extra labor man hour rates plus materials at cost plus *** percent 

  

			
		
	 21.    Custom’s Vacis/Security exams
	  	per terminal tariff
		
	 Other drays within terminal premises not associated with throughput cycle.
	  	*** one way
		
	 22.    Bundling of chassis/flatracks
	  	*** per chassis plus materials

 Subject to minimum labor guarantees 
  

	23.	Out of service equipment (containers and chassis) remaining on terminal in excess of *** calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge *** per container per day 

 If container is able to be stack in a normal manner and fits
in one container slot then storage (item 18) only applies. 
  

	24.	Any services not covered by above rates will be charged per terminal tariff. If not listed in terminal tariff or in above rates then services to be charged on extra labor basis
(item no.14) plus equipment (item no. 12). 

  

	
	 25.    Wharfage - per container loaded or discharged from vessel or barge excluding shifts and restows. Only one charge
per transshipped container.

	
	January 1, 2008 to December 31, 2008 *** per container
	January 1, 2009 to December 31, 2009 *** per container
	January l, 2010 to December 31, 2010 *** per container

  

			
	 26.    Fuel Surcharge
	  	 ***  per lift

 Fuel Surcharge is based on the Bureau of Labor Statistics
Producer Price Index No 2 Diesel Fuel with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year. If fuel prices decrease below the February 2005 level and eliminated if they fall below the February 2004 Level.
Fuel surcharge will be reviewed on April 1st and October 1st each year. 
  

			
	 27.    Chassis Switching charge
	  	*** straighttime
		  	*** overtime

 To/From truckers equipment From/To chassis 
 Switching of reefer containers from underslung genset chassis 
  

	*	Subject to minimum labor guarantees 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 6
	  	 6000 Carneige Blvd., Charlotte, NC 28209-4637
 Telephone: 704-571-2000     Fax: 704-571-4741
	  	

	28.	Container Incentive - Each container lift paid at base lift rate 1 A) will receive a credit of *** per lift from December 11, 2007 to December 10, 2008 and a credit of ***
per lift from December 11, 2008 to December 10, 2009 on vessel invoice. 

  

	29.	Reefer Fuel will be charged based on the following formula 

 The total number of running reefers loaded and discharged from vessels and barges for the month times *** percent times *** gallons per reefer times the average cost of a gallon of reefer fuel for the month at fuel vendor’s charge to
Contractor plus *** percent 
  

	30.	Vessel Husbandry – Contractor agrees to perform the Vessel Husbandry Services described in the Working Procedures Manual for Elizabeth for a fee of *** per call. Carrier
agrees that the Contractor shall not be held liable for any loss, cost, delay, fine, claim or other liability incurred by the Contractor or Carrier in connection with the Contractor providing the vessel husbandry services. 

 

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

	

  

					
	 7
	  	 6000 Carnegie Blvd, Charlotte, NC 28209-4637
 Telephone: 704-571-2000     Fax: 704-571-4741
	  	

 

 
 Jacksonville 
 Terminal Service for Horizon Lines 
 UNIVERSAL MARITIME FACILITY 
 Baseline Rates effective to September 30,2006 
 The rates in this Appendix effective on December 11, 2007 shall be the numbers listed below, provided however that such numbers are only baseline numbers and each shall be increased by the amount of the increases
as described in Sections 6 (a), 6(b), 12(a), 12(b) and 12(c) of the Terminal Agreement dated as of May 9, 2004(the “Original Agreement”) during the time period prior to December 11, 2007. 
 For example, if the rate item no. 1A for Jacksonville in the Original Agreement CPI/Labor increases on October 1, 2006 by 3 percent, then the *** baseline rate
listed below shall be increased to ***. The subsequent increases in the Original Agreement would also be applied to this rate through December 10, 2007. All rates in the below schedule would be adjusted in a similar manner based on their
percentage increase in the Original Agreement. 
  

				
	 1.      A) Discharge or load — base rate - per marine lift
	  	***	 
		
	 B) Transshipment per move
	  	***	 
		
	 C) - Shifting Cell to Cell within the same hatch
	  	***	 
		
	 D) Restowing container Cell to Dock to Cell
	  	***	 
		
	 E) Overheight unit lifted with overheight spreader (no wires)
	  	*** 	per lift

 Rate includes straight-time stevedoring staff/gangs, normal container lashing/unlashing on vessel (excluding
detentions), crane rental, tractors during vessel operations, assisting in receiving and delivery, clerking and checking during vessel operations, weighing of export containers, cargo plan preparation, roadability check (labor only), visual seal
inspection, and load/empty cycle to/from vessel including tir preparation. Standard operational procedure is that all containers to be wheeled. 
 Each
vessel move (excluding shifts and heavy lifts) is allowed *** gate moves. Each month total gate moves that exceed the allowed number of gate moves, will be invoiced to the carrier as per item number 7 below. No credit will be given for unused gate
moves. 
 The transshipment rate is based on a container discharging from a vessel or a barge and loading to a vessel or barge. Each container will be
invoiced *** transshipment moves. 
 Base lift rate item 1(A) and Transhipment rate 1(B) to be discounted by *** percent from December 11, 2007 to
December 10, 2008 and by *** percent from December 11, 2008 to December 10, 2010. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

 6000 Carnegie Blvd, Charlotte, NC 28209-4637 
 Telephone: 704-571-2000     Fax: 704-571-4741 

 

 
  

	B)	Lifting Bundles of Flat Racks/Chassis - 

  

	 	A.	If received at gate bundled then we will charge 

  

	 	a.	If can use standard spreader bar, charge will be *** base lift rate for load or discharge 

  

	 	b.	If requires wires to load/discharge, then will be charged per extra labor hourly lifting rates 

  

	 	B.	If requested to be bundled/unbundled by Horizon Lines 

  

	 	a.	If can use standard spreader bar, charge will be the following: 

  

	 	i.	*** base lift rate for load or discharge 

  

	 	ii.	contract charge for bundling/unbundling 

  

	 	 iii.
	 mounting or grounding charge for the *** chassis/flat

  

	 	b.	If requires wires than charges will be the following: 

  

	 	i.	Per extra labor hourly lifting rates 

  

	 	ii.	Contract charge for bundling / unbundling 

  

	 	C.	If the contractor locks (or unlocks) and secures empty flatracks pierside and lifts to/from vessel as one unit, the carrier will be charged the base lift rate for each individual
flat loaded/discharged provided that the contractor follows, the slow plan provided by the carrier with relation to the stowage of flatracks. (i.e. if 4 flats are locked together shoreside and lifted as one unit to the vessel, the lift charge to the
carrier will be 4 x base lift rate) 

  

			
	 2.  (A) Reefer Differential assessed to each loaded reefer for plug/unplug services, quality check at time of discharge /loading,
record keeping, administrative services. This rate does not include pre-tripping, labor to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for reefers received/delivered with no vessel
activity.
	  	***
per loaded reefer
	     (B) Daily Reefer monitoring and electric charges per calendar day or portion thereof (minimum one day
charge)
	  	***
Daily charge
		
	 First Calendar Day to receive a *** percent discount from stated rate
	  	
		
	 3. Installing or removing Genset – *** minutes at the applicable M and R man hour rate plus *** Fueling Gensets – *** minutes at the
applicable M and R man hour rate
	  	
		
	 4.A) Standby /guarantee per Gang per hour straightime
	  	
	 One Gang
	  	***
	 Two Gangs
	  	***
	 Three Gangs
	  	***

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Jachsonville
	  	2	  	

 

 
  

			
	 B)Extra Labor/Heavy Lifts per Gang per hour straightime
	  	
	 One Gang
	  	***
	 Two Gangs
	  	***
	 Three Gangs
	  	***
	 C) Detentions per Gang per Hour straighttime
	  	
	 (see appendix 1 for list of billable and non billable detentions)
	  	
	 One Gang
	  	***
	 Two Gangs
	  	***
	 Three Gangs
	  	***
	 5.  Overtime Differentials per gang per hour
	  	
	 A) Overtime
	  	
	 One Gang
	  	***
	 Two Gangs
	  	***
	 Three Gangs
	  	***
	 B) Double Time
	  	
	 One Gang
	  	***
	 Two Gangs
	  	***
	 Three Gangs
	  	***
	 C) Double Overtime
	  	
	 One Gang
	  	***
	 Two Gangs
	  	***
	 Three Gangs
	  	***
	 D) Double Double Overtime
	  	
	 One Gang
	  	***
	 Two Gangs
	  	***
	 Three Gangs
	  	***

  

	6.	Overtime Gate Charges — extra labor plus equipment per items 13 and 14 below prorated between carriers based on percentage of moves utilizing gate outside standard terminal
gate hours. Current standard gate hours are 0800 to 1700 Monday, Wednesday, and Thursday and 0700 to 1700 Tuesday and Friday. Holiday gates which are included in the base lift rate are stated on attached schedule. UMS reserves the right to change
the standard gate hours if proforma or volume changes warrant it. If the terminal operator chooses to open during the lunch period or operate flex gates there will be no extra charge to the carrier. Overtime gate charges also apply to ILA holidays.

 Note: A flat fee of *** will be charged for receiving containers between 1700 to 1900 hours on Friday. 
  
  

					
	7.	 	Extra Gate Moves (exceeding the *** gate moves included per vessel lift).	  	***/move

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

	

  

					
	 Jachsonville
	  	3	  	

 

 
  

 Billing to be done on a calendar month basis. 
  

							
	8.	 	 Mounting/grounding —
	 		  	*** ST
		 		 		  	*** OT
				
		 	** Subject to minimum labor guarantees	 		  	
	
	Each container that is required to be handled within stack to carry out request will be charged a mount and/or ground fee. Also, this
item would apply if there is an overall
change by Horizon Lines in the mode of operation. This rate will include drayage of container
within the terminal. In regards to For Sale and Off Hire containers, if a trucker requests a specific container number, then Contractor
will charge a
mounting /grounding charge per move shifted/handled, excluding the move for the container delivered.
	
	In addition, in the event that the Carrier changes its mode of operation or makes a special request to the Contractor not covered by this
Agreement, in either case, Contractor
reserves the right to order a dedicated yard detail and charge Carrier at extra labor plus
equipment rates
	
	Carrier has option of paying on extra labor plus equipment basis (items 12 and 13) subject to minimum labor guarantees.
		
	9.	 	Miscellaneous Parts for Roadability -carrier to negotiate directly with m and r vendor. This is not applicable to Maersk owned chassis.
			
	10.	 	Maintenance - carrier to handle directly with m and r vendor	  	
				
	11.	 	Drayage	 		  	
				
		 	Custom’s Vacis/Security/Government exams Other drays within terminal	 		  	per terminal tariff
*** one way
		
	12.	 	Equipment rental rates (when ordered by carrier) (excludes operator)
				
		 	        - Top Loader	 	*** per hour	  	
		 	        - Yard Hustlers	 	*** per hour	  	
		 	        - Empty Handler	 	*** per hour	  	
		 	        - Bombcart	 	*** per hour	  	
		 	        - Container Crane	 	per APM Terminals contract rate with Port Authority
				
	13.	 	Extra Labor Rates	 	 straight time *** overtime ***
 doubletime
*** double overtime ***
	  	
			
	14.	 	Dockage and Wharfage	 	charged at APM Terminals contract rate with Port Authority
			
	15.	 	Line Handling	 	actual Man hours at extra labor rates plus any man hour guarantees
		
	16.	 	Full containers received over the road and redelivered without loading or discharging to or from vessel are not included in the *** gate moves or allowed mounting/grounding and will
be billed *** per container (Excludes demurrage).

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Jacksonville
	  	4	  	

 

 
  

							
			
	17.	  	Terminal storage charges-	  	
			
		  	 Storage of empty containers     -
	  	*** per unit per day
		
		  	Empty allowance will be determined by multiplying the carriers container lift volume each month times *** times the number of days in the month. Excess empty container days over such
allowed free days will be charged monthly at the following rate per container per day. (free days = lifts x *** x days in period)
		
		  	Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree when the Contractor notifies the Carrier that empty storage of equipment meets
or exceeds the storage cap, Carrier will be required to present the respective terminal with an empty evacuation plan to reduce the number of empties below the cap within a fourteen day period. Daily storage cap is equal to one percent of the
Carrier’s previous year’s annual throughput
				
	18.	  	Demurrage –	  	Terminal Operator will bill, collect, and retain demurrage from carrier per terminal tariff in effect on October 15, 2006. Below is table of rates from terminal tariff	  	
	
	Freetime for export cargo is *** calendar days.
Freetime for import cargo is *** business days for dry containers and *** business
days for temperature controlled containers
	
	Demurrage Rates (per 20’/40’ container per calendar day or part thereof)
		
	Inbound/Outbound/Transshipments	  	

					
			
	I)	  	*** Days (first period)	  	
			
		  	Dry General Purpose containers/Non-Operating Reefers	  	***
			
		  	Operating Reefers	  	***
			
		  	Flat-racks, Open-top and Special Equipment	  	***
			
		  	Tank Containers	  	***
			
	II)	  	*** and above (second period)	  	
			
		  	Dry General Purpose containers/Non-Operating Reefers	  	***
			
		  	Operating Reefers	  	***

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Jacksonville
	  	5	  	

 

 
  

					
			
		  	Flat-racks, Open-top and Special Equipment	  	***
			
		  	Tank Containers	  	***

 The only exception is that the Contractor shall grant Carrier *** business days freetime for autoracks, pallet
loads, and dunnage provided that Carrier provides a list of these containers to Contractor 48 hours prior to vessel’s arrival 
  

									
			
	19.	  	Lashing/unlashing of breakbulk cargo on board vessel	  	 extra labor man hour rates
 plus materials at cost plus *** percent

				
	20.	  	Bundling of chassis / flatracks	  		  	*** per chassis/flat plus materials
				
		  	* subject to minimum labor guarantees	  		  	
			
	21.	  	Out of service equipment (containers and chassis) remaining on terminal in excess of *** calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge	  	*** per container per day              
		
		  	If container is able to be stack in a normal manner and fits in one container slot then storage (item 17) only applies.
		
	22.	  	Any services not covered by above rates will be charged per terminal tariff. If not listed in terminal tariff or in above rates then services to be charged on extra labor basis (item
no. 12) plus equipment (item no. 13).
				
	23.	  	Chassis Switching charge	  		  	*** straighttime
		  		  		  	*** overtime     
		
		  	 To/from truckers equipment From/To chassis
 Switching of reefer containers from underslung genset chassis

		
	24.	  	Container Incentive            Each container lift paid at base lift rate 1 A) will receive a credit of *** per lift from
December 11, 2007 to December 10, 2008 and a credit of *** per lift from December 11, 2008 to December 10, 2009 on vessel invoice.
		
	25.	  	Reefer Fuel will be charged based on the following formula
	
	The total number of running reefers loaded and discharged from vessels and barges for the month times *** percent times *** gallons
per reefer times the average cost of a gallon
of reefer fuel for the month at fuel vendor’s charge to Contractor plus *** percent.

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Jacksonville
	  	6	  	

 

 
 Houston 
 Terminal Service for Horizon Lines 
 UNIVERSAL MARITIME FACILITY 
 Baseline Rates effective to September 30, 2006 
 The rates in this Appendix effective on
December 11, 2007 shall be the numbers listed below, provided however that such numbers are only baseline numbers and each shall be increased by the amount of the increases as described in Sections 6(a), 6(b), 12(a), 12(b) and 12(c) of the
Terminal Agreement dated as of May 9, 2004 (the “Original Agreement”) during the time period prior to December 11, 2007. 
 For example,
if the rate item no. 1A for Houston in the Original Agreement CPI/Labor increases on October 1, 2006 by 3 percent, then the *** baseline rate listed below shall be increased to ***. The subsequent increases in the Original Agreement would also
be applied to this rate through December 10, 2007. All rates in the below schedule would be adjusted in a similar manner based on their percentage increase in the Original Agreement. 
  

					
	 1.
	 	 A)    Discharge or load — base rate -per marine lift
	  	*** full
		 		  	*** empty
		 	 B)     Transshipment per move
	  	*** full/empty
			
		 	 C)     Cell to Cell within the same hatch
	  	***
		 	 D)    Restowing container Cell to Dock to Cell
	  	***
			
		 	 E)     Overheight unit lifted with overheight spreader (no wires)
	  	*** per lift

 Rate includes straight-time stevedoring staff/gangs, normal container lashing/unlashing on vessel (excluding
detentions), crane rental, tractors during vessel operations, assisting in receiving and delivery, clerking and checking during vessel operations, weighing of export containers, wharfage, cargo plan preparation, roadability check (labor only),
visual seal inspection and load/empty cycle to/from vessel including tir preparation. Standard operational procedure is a grounded operation with the exception of reefers, special hazardous and loaded tank containers. 
 Each vessel move (excluding shifts and heavy lifts) is allowed *** gate moves. Each month total gate moves that exceed the allowed number of gate moves, will be invoiced
to the carrier as per item number 6 below. No credit will be given for unused gate moves. 
 The transshipment rate is based on a container discharging from
a vessel or a barge and loading to a vessel or barge. Each container will be invoiced *** transshipment moves. 
 Base lift rate item 1(A) and Transhipment
rate 1 (B) to be discounted by *** percent from December 11, 2007 to December 10, 2008 and by *** percent from December 11, 2008 to December 10, 2010. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

 6000 Carnegie Blvd., Charlotte, NC 28209-4637 
 Telephone: 704-571-2000     Fax: 704-571-4741 

 

 
  

	B)	Lifting Bundles of Flat Racks/Chassis – 

  

	 	A.	If received at gate bundled then we will charge 

  

	 	a.	If can use standard spreader bar, charge will be *** base lift rate for load or discharge 

  

	 	b.	If requires wires to load/discharge, then will be charged per extra labor hourly lifting rates plus mounting or grounding charge 

  

	 	B.	If requested to be bundled/unbundled by Horizon Lines 

  

	 	a.	If can use standard spreader bar, charge will be the following: 

  

	 	i.	*** base lift rate for load or discharge 

  

	 	ii.	contract charge for bundling / unbundling 

  

	 	 iii.
	 mounting or grounding charge for the *** chassis/flat

  

	 	b.	If requires wires than charges will be the following: 

  

	 	i.	Per extra labor hourly lifting rates 

  

	 	ii.	Contract charge for bundling / unbundling 

  

	 	iii.	mounting or grounding charge for each chassis or flat 

  

	 	C.	If the contractor locks (or unlocks) and secures empty flatracks pierside and lifts to/from vessel as one unit, the carrier will be charged the base lift rate for each individual
flat loaded/discharged provided that the contractor follows the stow plan provided by the carrier with relation to the stowage of flatracks. (i.e. if 4 flats are locked together shoreside and lifted as one unit to the vessel, the lift charge to the
carrier will be 4 x base lift rate) 

  

					
	 2.      
	 	 (A)    Reefer Differential assessed to each loaded reefer for plug/unplug services, quality check at time of
discharge/loading, record keeping, administrative services. This rate does not include pre-tripping, labor to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for reefers received/delivered with no
vessel activity.
	  	***
per loaded reefer
			
		 	 (B)    Daily Reefer monitoring and electric charges per calendar day or portion thereof (minimum one day
charge)
	  	
 ***
Daily charge

		
		 	 First Calendar Day to receive a *** percent discount from stated rate

							
				
	 3.    
	 	 Installing or removing Genset
	  	-	  	*** minutes at the applicable M and R man hour rate plus ***
		 	 Fueling Gensets
	  	-	  	*** minutes at the applicable M and R man hour rate
		 	 Reefer Data Download
	  	-	  	*** per reefer

  

			
	 4.     
	 	 A)    Standby /guarantee per Gang per hour straightime

  

			
	 One Gang Barge
	  	***
	 One Gang Vessel
	  	***
	 Two Gangs Vessel
	  	***

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Houston
	  	2	  	

 

 
  

	 	B)	Extra Labor/Heavy Lifts per Gang per hour straightime 

  

			
	 One Gang Barge
	  	***
	 One Gang Vessel
	  	***
	 Two Gangs Vessel
	  	***

  

	 	C)	Detentions per Gang per Hour straighttime 

	 	 	(see appendix 1 for list of billable and non billable detentions) 

  

			
	 One Gang Barge
	  	***
	 One Gang Vessel
	  	***
	 Two Gangs Vessel
	  	***

  

	5.	Overtime Differentials per gang per hour 

  

							
	 A)    Overtime
	 	One Gang Barge    	  	***	 	
		 	One Gang Vessel    	  	***	 	
		 	Two Gangs Vessel	  	***	 	
				
	 B)     Double Time
	 	One Gang Barge    	  	***	 	
		 	One Gang Vessel    	  	***	 	
		 	Two Gangs Vessel	  	***	 	

  

					
	 6.      Extra Gate Moves (exceeding the *** gate moves included per vessel lift). Billing to be done
on a calendar month basis.
	  	***/move
		
	 7.      Mounting/grounding — activity not included in base rate
	  	*** ST
*** OT

  

	**	Subject to minimum labor guarantees 

 Mounting and Grounding will only be
charged when performed outside of the normal throughput cycle. This includes but is not limited to digging out empty containers by container number, for sale containers, off hire containers, containers moving to/from repair, unusual requests
requiring restacking of full containers etc. Each container that is required to be handled within stack to carry out request will be charged a mount and/or ground fee. Also, this would apply if there is an overall change by Horizon Lines in the mode
of operation. This rate will include drayage of container within the terminal. In regards to For Sale and Off Hire containers , if a trucker requests a specific container number, then Contractor will charge a mounting /grounding charge per move
shifted/handled, excluding the move for the container delivered. 
 In addition, in the event that the Carrier changes its mode of operation or makes a
special request to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to order a dedicated yard detail and charge Carrier at extra labor plus equipment rates. 
  

	8.	Miscellaneous Parts for Readability – cost plus *** percent. This is not applicable to Maersk owned chassis. 

  

	9.	Maintenance -Dayshift Straighttime *** Overtime *** Doubletime *** 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Houston
	  	3	  	

 

 
  

					
	10.	 	 Drayage
	  	
		 	    To or From on terminal rail	  	*** one way
		 	     USDA Dray
	  	*** one way
		 	     US Customs or others dray within terminal
	  	*** one way
		 	     Custom’s Vacis/Security exams
	  	per terminal tariff

  

	11.	Equipment rental rates (when ordered by carrier) (excludes operator) 

  

			
	 - Top Loader
	  	 *** per hour

	 - Yard Hustlers
	  	 *** per hour

	 - Empty Handler
	  	 *** per hour

	 - Transtainer
	  	 *** per hour

	 - Bombcart
	  	 *** per hour

	 - Container Crane
	  	 *** per hour

  

	12.	Overtime Gate Charges – extra labor plus equipment per items 11 and 13 prorated between carriers based on percentage of moves utilizing gate outside standard terminal gate
hours. Current standard gate hours are 0700 to 1900 Monday through Friday. Holiday gates which are included in the base lift rate are stated on attached schedule. UMS reserves the right to adjust standard gate hours but not without the mutual
consent of Horizon Lines, who can not unreasonably object to such a change without conclusive evidence that UMS agrees support a negative financial impact to Horizon Lines. IF the terminal operator chooses to open during the lunch period or operate
flex gates, there will be no extra charge to the carrier. Overtime gate charges also apply to ILA holidays. 

  

					
	13.	 	   Extra Labor Rates
	  	 straighttime *** overtime *** doubletime ***

			
	14.	 	   Line Handling
	  	 carrier to arrange directly with vendor

  

	15.	Full containers received over the road and redelivered without loading or discharging to or from vessel are not included in the *** gate moves or allowed mounting/grounding and will
be billed *** per container. (Excludes demurrage) 

  

	16.	Terminal storage charges- 

			
	 Storage of empty containers -
	  	*** per unit per day

 Empty allowance will be determined by multiplying the carriers container lift volume each month
times *** times the number of days in the month. Excess empty container days over such allowed free days will be charged monthly at the following rate per container per day. (free days = lifts x *** x days in period) 
 Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree when the Contractor notifies the Carrier that
empty storage of equipment meets or exceeds the storage cap, Carrier will be required to present the respective terminal with an empty evacuation plan to reduce the number of empties blow the cap within a fourteen day period. Daily storage cap is
equal to *** empty containers. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Houston
	  	4	  	

 

 
  

							
	 17.
	 	 Demurrage
	 	-	  	Terminal Operator will bill, collect, and retain demurrage from carrier per terminal tariff in effect on October 15, 2006, Below is table of rates from terminal
tariff
		 		 		  	 Freetime for export cargo is *** calendar days.

		 		 		  	Freetime for import cargo is *** business days for dry containers and 2 business days for temperature controlled containers.

 Demurrage Rates (per 20’/40’ container per calendar day or part thereof) 
 Inbound/Outbound/Transshipments 
  

					
	I)	  	 *** Days (first period)
	  	
			
		  	 Dry General Purpose containers/Non-Operating Reefers
	  	***
			
		  	 Operating Reefers
	  	***
			
		  	 Flat-racks, Open-top and Special Equipment
	  	***
			
		  	 Tank Containers
	  	***
			
	II)	  	 *** and above (second period)
	  	
			
		  	 Dry General Purpose containers/Non-Operating Reefers
	  	***
			
		  	 Operating Reefers
	  	***
			
		  	 Flat-racks, Open-top and Special Equipment
	  	***
			
		  	 Tank Containers
	  	***

 The only freetime exception is that the Contractor shall grant Carrier *** business days freetime for autoracks,
pallet loads, and dunnage provided that Carrier provides a list of these containers to Contractor 48 hours prior to vessel’s arrival. 
  

					
	18.	 	 Lashing/unlashing of breakbulk cargo on board vessel
	  	extra labor man hour rates
		 		  	plus materials at cost plus *** percent
			
	19.	 	 Bundling of chassis /Flatracks
	  	*** per chassis/flat plus materials

  

	20.	Out of service equipment (containers and chassis) remaining on terminal in excess of *** calendar days w/o approval from carrier to proceed with 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Houston
	  	5	  	

 

 
  

			
	 necessary repairs will be assessed a storage charge
                                       
 *** per container per day

 If container is able to be stack in a normal manner and fits in one container slot then storage (item 16) only
applies. 
  

	21.	Any services not covered by above rates will be charged per terminal tariff. If not listed in terminal tariff or in above rates then services to be charged on extra labor basis
(item no. 11) plus equipment (item no. 13). 

  

					
	 22.    Fuel Surcharge
	 		  	*** per lift

 Fuel Surcharge is based on the Bureau of Labor Statistics
Producer Price Index No 2 Diesel Fuel with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year. If fuel prices decrease below the February 2005 level and eliminated if they fall below the February 2004 Level.
Fuel surcharge will be reviewed on April 1st and October 1st each year. 
  

					
	 23.    Chassis Switching charge
	  		  	 *** straighttime

		  		  	 *** overtime

 To/From truckers equipment From/To chassis 
 Switching of reefer containers from underslung genset chassis 
 Subject to minimum labor guarantees 
  

	24.	Container Incentive Each container lift paid at base lift rate 1 A) will receive a credit of *** per lift from December 11, 2007 to December 10, 2008 and a
credit of *** per lift from December 11, 2008 to December 10, 2009 on vessel invoice. 

 25. Reefer Fuel will be charged based on the
following formula 
 The total number of running reefers loaded and discharged from vessels and barges for the month times *** percent times *** gallons per
reefer times the average cost of a gallon of reefer fuel for the month at fuel vendor’s charge to Contractor plus *** percent. In addition any reefers handled to/from on dock rail not associated with any vessel activity will be invoiced based
on actual fuel activity and not included in the formula. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Houston
	  	6	  	

 

 
 OAKLAND 
 Terminal Service for Horizon Lines 
 APM Terminals Pacific Ltd FACILITY 
 Baseline Rates effective to June 30, 2006 
 The rates in this Appendix
effective on December 11, 2007 shall be the numbers listed below, provided however that such numbers are only baseline numbers and each shall be increased by the amount of the increases as described in Sections 6 (a), 6(b), 12(a), 12(b) and
12(c) of the Terminal Agreement dated as of May 9, 2004 (the “Original Agreement”) during the time period prior to December 11, 2007. 
 For example, if the rate item no. 1A for Oakland in the Original Agreement CPI/Labor increases on July 1, 2006 by 3 percent, then the *** baseline rate listed below shall be increased to ***. The subsequent increases in the Original
Agreement would also be applied to this rate through December 10, 2007. All rates in the below schedule would be adjusted in a similar manner based on their percentage increase in the Original Agreement. 
  

					
	 1.
	  	 A) Discharge or load – base rate -per marine lift
	  	***
			
		  	 B) Transshipment per move
	  	***
			
		  	 C) Cell to Cell within the same hatch
	  	***
			
		  	 D) Restowing container Cell to Dock to Cell
	  	***
			
		  	 E) Overheight unit lifted with overheight spreader (no wires)
	  	*** per lift

 Rate includes first shift weekday stevedoring staff/gangs, normal container lashing/unlashing on vessel (excluding
detentions), crane rental, tractors during vessel operations, assisting in receiving and delivery, wharfage, dockage, clerking and checking during vessel operations, weighing of export containers, cargo plan preparation, roadability check (labor
only), visual seal inspection at gate, and load/empty cycle to/from vessel including tir preparation. Standard operational procedure is that exports and imports will be wheeled and empties grounded. Contractor will allow up to *** percent of empties
to be wheeled provided sufficient chassis available and required to service customer daily requirement. 
 Receiving and delivery gates will be in operation
from 0800 to 1200 and from 1300 to 1700* on straight time workdays. If the terminal operator chooses to open during the lunch period or from 0700 to 0800 hours weekdays, there will be no extra charge to the carrier. On Wednesdays gate is opened from
1200 to 1300. 
 Each vessel move (excluding shifts and heavy lifts) is allowed *** gate moves. Each month total gate moves that exceed the allowed number of
gate moves, will 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

 6000 Carnegie Blvd., Charlotte, NC 28209-4637 
 Telephone: 704-571-2000     Fax: 704-571-4741 

 

 
  

 
be invoiced to the carrier as per item number 7 below. No credit will be given for unused gate moves. 
 The transshipment rate is based on a container discharging from a vessel or a barge and loading to a vessel or barge. Each container will be invoiced *** transshipment
moves. 
 *Specifically, 
 Drivers receiving/delivering empties
must be processed by 1600 hours. 
 Drivers receiving import full containers must be processed by 1600 hours 
 Drivers delivering export full dry containers or live reefers must be processed by 1630 hours 
 Base lift rate item 1(A) and Transhipment rate 1(B) to be discounted by *** percent from December 11, 2007 to December 10, 2008 and by *** percent from December 11, 2008 to December 10, 2010.

  

	B)	Lifting Bundles of Flat Racks/Chassis – 

  

	 	A.	If received at gate bundled then we will charge 

  

	 	a.	If can use standard spreader bar, charge will be *** base lift rate for load or discharge 

  

	 	b.	If requires wires to load/discharge, then will be charged per extra labor hourly lifting rates 

  

	 	B.	If requested to be bundled/unbundled by Horizon Lines 

  

	 	a.	If can use standard spreader bar, charge will be the following: 

  

	 	i.	*** base lift rate for load or discharge 

  

	 	ii.	contract charge for bundling/unbundling 

  

	 	 iii.
	 mounting or grounding charge for the *** chassis/flat 

  

	 	b.	If requires wires than charges will be the following: 

  

	 	i.	Per extra labor hourly lifting rates 

  

	 	ii.	Contract charge for bundling / unbundling 

  

	 	C.	If the contractor locks (or unlocks) and secures empty flatracks pierside and lifts to/from vessel as one unit, the carrier will be charged the base lift rate for each individual
flat loaded/discharged provided that the contractor follows the stow plan provided by the carrier with relation to the stowage of flatracks. (i.e. if 4 flats are locked together shoreside and lifted as one unit to the vessel, the lift charge to the
carrier will be 4 x base lift rate) 

  

			
	 2.(A) Reefer Differential assessed to each loaded reefer for plug/unplug services, quality check at time of discharge /loading, record
keeping, administrative services. This rate does not include pre-tripping, labor to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to charged also for reefers received/delivered with no vessel
activity.
	  	***
per loaded reefer

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	Oakland	  	2	  	

 

 
  

					
	 (B)
	 	 Daily Reefer monitoring and electric charges per calendar day or portion thereof
 (minimum one day charge)
	  	***
Daily charge
			
		 	 First Calendar Day to receive a *** percent discount from stated rate.
	  	
			
	 3.
	 	 Installing or removing Genset – *** minutes at the applicable M and R man hour rate plus ***

Fueling Gensets - *** minutes at the applicable M and R man hour rate
	  	
			
	 4. A)
	 	 Standby /guarantee per Gang per hour Weekday, 1st Shift Straighttime
 In addition overtime differentials (item no. 5 will apply) based on period
	  	***
			
	 B)
	 	 Extra Labor/Heavy Lifts per Gang per hour Weekday, 1st Shift Straighttime
 In addition overtime differentials (item no. 5 will apply) based on period
	  	***
			
	 C)
	 	 Detentions per Gang per Hour
 (see appendix 1 for list of billable and non billable detentions) Weekday, 1st Shift Straighttime
 In addition overtime differentials (item no. 5 will apply) based on period
	  	***
			
	 5.
	 	 Overtime Differentials per gang per hour
	  	

  

											
		 		 	 Weekday, 2nd
Shift
	  	***	    	 Weekday, 3rd
Shift
	  	***
		 		 	 Weekend, 1st
Shift
	  	***	    	 Weekend, 2nd
Shift
	  	***
		 		 	 Weekend, 3rd
Shift
	  	***	    	 Holiday, 1st/2nd a Shift Weekdays
	  	***
		 		 		  		    	 Holiday, 3rd
Shift Weekdays
	  	***

  

					
	6.	 	Overtime Gate Charges – extra labor plus equipment per items 12 and 13 below prorated between carriers based on percentage of moves utilizing gate. Holiday gates which are
included in the base lift rate are stated on attached schedule.
		
	7.	 	Extra Gate Moves (exceeding the *** gate moves included per ***/move vessel lift). Billing to be done on a calendar month basis.

  

					
	8.	 	Mounting/grounding	  	***/move 1st shift weekday
		 		  	***/move 2nd shift Weekday
		 		  	***/move 3rd shift Weekday
		 		  	***/move 1st/2nd shift Weekend
		 		  	***/move 3rd shift Weekend

  

	**	Subject to minimum labor guarantees 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

	

  

					
	Oakland	  	3	  	

 

 
  

 Mounting and Grounding of empties will only be charged when performed outside of the normal throughput cycle. This
includes but is not limited to digging out empty containers by container number, for sale containers, off hire containers, containers moving to/from repair, etc. All mounting and grounding of loaded containers will incur mounting/grounding charges.

 Each container that is required to be handled within stack to carry out request will be charged a mount and/or ground fee. Also, this item would apply if
there is an overall change by Horizon Lines in the mode of operation. This rate will include drayage of container within the terminal. 
 In addition, in the
event that the Carrier changes its mode of operation or makes a special request to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to order a dedicated yard detail and charge Carrier at extra labor plus
equipment rates 
  

	9.	Miscellaneous Parts for Readability - carrier to handle directly with m and r vendor. This is not applicable to Maersk owned chassis. 

  

			
	 10.   Lashing/unlashing of breakbulk cargo on board vessel
	  	extra labor man hour rates plus
		  	materials at cost plus *** percent

  

	11.	Maintenance - carrier to handle directly with m and r vendor 

  

	12.	Equipment rental rates (when ordered by carrier)(excludes operator) 

			
	 - Top Loader
	  	 *** per hour

	 - Yard Hustlers
	  	 *** per hour

	 - Empty Handler
	  	 *** per hour

	 - Transtainer
	  	 *** per hour

	 - Bombcart
	  	 *** per hour

	 - Container Crane
	  	 *** per hour

  

	13.	Extra Labor Rates per man hour subject to minimum guarantees 

							
	 Weekday, 1st Shift
	  	***	 	Weekday, 2nd
Shift	 	***
	 Weekday, 3rd Shift
	  	***	 	Weekend, 1st
Shift	 	***
	 Weekend, 2nd Shift
	  	***	 	Weekend, 3rd
Shift	 	***

  

			
	 14.    Line Handling per activity (ie two charges per call)
	  	1st shift weekdays tie up
***
	2nd shift weekdays/1st/2nd shift weekends tie up ***
		  	1st shift weekdays let go
***
	2nd shift weekdays/1st/2nd shift weekends let go ***

  

	15.	Full containers received over the road and redelivered without loading or discharging to or from vessel are not included in the *** gate moves or allowed mounting/grounding and will
be billed *** per container (Excludes demurrage) 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

	

  

					
	Oakland	  	4	  	

 

 
  

	16.	Terminal storage charges- 

			
	 Storage of empty containers -
	 	*** per unit per day

 Empty allowance will be determined by multiplying the carriers container lift volume each month
times *** times the number of days in the month. Excess empty container days over such allowed free days will be charged monthly at the following rate per container per day. (free days = lifts x *** x days in period) 
 Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree when the Contractor notifies the Carrier that
empty storage of equipment meets or exceeds the storage cap, Carrier will be required to present the respective terminal with an empty evacuation plan to reduce the number of empties below the cap within a fourteen day period. Daily storage cap is
equal to *** empty containers. 
  

			
	 17.    Demurrage –
	 	Terminal Operator will bill, collect, and retain demurrage from carrier
		 	per terminal tariff in effect on October 15, 2006. Below is table of rates
		 	from terminal tariff

  

							
	  	  	Charge per day
for the first ***
days or fraction
thereof	 	 	 Charge per day
for each
additional day
over
***
 days or
fraction
thereof
	 
	 Inbound
	  			 		
	 up to 20 ft.
	  	*	**	 	*	**
	 Over 20 ft to 40 ft:
	  	*	**	 	*	**
	 Over 40’
	  	*	**	 	*	**
	 Outbound
	  			 		
	 20 ft.
	  	*	**	 	*	**
	 Over 20 ft to 40 ft:
	  	*	**	 	*	**
	 Over 40’
	  	*	**	 	*	**

 Freetime for import and export cargo is *** business days for dry containers and *** business days for temperature
controlled containers. 
 The only freetime exception is that the Contractor shall grant Carrier *** business days freetime for autoracks, pallet loads, and
dunnage provided that Carrier provides a list of these containers to Contractor 48 hours prior to vessel’s arrival. 
  

	18.	Custom’s Vacis/Security /USDA Exams/other government exams     per terminal tariff 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

	

  

					
	Oakland	  	5	  	

 

 
  

			
	 Other drays within terminal premises not associated
	  	*** one way
	 with throughput cycle.
	  	

  

			
	 19.    Bundling of chassis/flatrack first shift weekdays
	  	*** per chassis/flat bundled plus materials

  

			
	 20.    Out of service equipment (containers and chassis) remaining on terminal

	 in excess of *** calendar days w/o approval from carrier to proceed with

	 necessary repairs will be assessed a storage charge
	  	*** per container per day
	 If container is able to be stack in a normal manner and fits in one container slot then storage (item 16)

	 only applies.
	  	

  

	21.	Any services not covered by above rates will be charged per terminal tariff. If not listed in terminal tariff or in above rates then services to be charged on extra labor basis
(item no. 13) plus equipment (item no. 12). 

  

			
	 22.    Fuel Surcharge
	  	*** per lift
	 Fuel Surcharge is based on the Bureau of Labor Statistics Producer Price Index No 2

	 Diesel Fuel with February 2004 to February 2005 as the basis. This will be reviewed /

	 adjusted once a year. If fuel prices decrease below the February 2005 level and eliminated

	 if they fall below the February 2004 Level. Fuel surcharge will be reviewed on January 1st

	 and July 1st each
year.

  
  

			
	 23.    Chassis Switching charge
	  	 ***/move 1st shift weekday

		  	 ***/move 2nd shift Weekday

		  	 ***/move 3rd shift Weekday

		  	 ***/move 1st/2nd shift Weekend

		  	 ***/move 3rd shift weekend

 To/From truckers equipment From/To chassis 
 Switching of reefer containers from underslung genset chassis 
 Subject to minimum labor guarantees 
  

	24.	Container Incentive Each container lift paid at base lift rate 1 A) will receive a credit of *** per lift from December 11, 2007 to December 10, 2008 and a credit of ***
per lift from December 11, 2008 to December 10, 2009 on vessel invoice. 

  

	25.	Reefer Fuel will be charged based on the following formula 

 The total number of running reefers loaded and discharged from vessels and barges for the month times *** percent times *** gallons per reefer times the average cost of a gallon of reefer fuel for the month at fuel vendor’s charge to
Contractor plus *** percent. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	Oakland	  	6	  	

 

 
 Los Angeles 
 Terminal Service for Horizon Lines 
 APM Terminals Pacific Ltd FACILITY 
 Baseline Rates effective to June 30, 2006 
 The
rates in this Appendix effective on December 11, 2007 shall be the numbers listed below, provided however that such numbers are only baseline numbers and each shall be increased by the amount of the increases as described in Sections 6(a),
6(b), 12(a), 12(b) and 12(c) of the Terminal Agreement dated as of May 9, 2004 (the “Original Agreement”) during the time period prior to December 11, 2007. 
 For example, if the rate item no. 1A for Los Angeles in the Original Agreement CPI/Labor increases on July 1, 2006 by 3 percent, then the *** baseline rate listed below shall be increased to ***. The subsequent
increases in the Original Agreement would also be applied to this rate through December 10, 2007. All rates in the below schedule would be adjusted in a similar manner based on their percentage increase in the Original Agreement. 
  

			
	 1.       A) Discharge or load – base rate -per marine lift
	  	***
		
	 B) Transshipment per move
	  	***
		
	 C) Cell to Cell within the same hatch
	  	***
		
	 D) Restowing container Cell to Dock to Cell
	  	***
		
	 E) Overheight unit lifted with overheight spreader(no wires)
	  	*** per lift

 Rate includes first shift weekday stevedoring staff/gangs, normal container lashing/unlashing on vessel (excluding
detentions), crane rental, tractors during vessel operations, assisting in receiving and delivery, wharfage, dockage, clerking and checking during vessel operations, weighing of export containers, cargo plan preparation, roadability check (labor
only), visual seal inspection at gate, and load/empty cycle to/from vessel including tir preparation. Standard operational procedure is a wheeled operation for full containers and grounded operation for empties. 
 Receiving and delivery gates will be in operation for first shift (0800 – 1700) and second shift (1800 – 0300) on weekdays excluding holidays. If the
terminal operator chooses to open during the lunch period or open 0700 to 0800 hours weekdays, there will be no extra charge to the carrier. Friday second shift for wheeled operation only. 
 6000 Carnegie Blvd., Charlotte, NC 28209-4637 
 Telephone:
704-571-2000        Fax: 704-571-4741 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

 

 
  

 Each vessel move (excluding shifts and heavy lifts) is allowed *** gate moves. Each month total gate moves that
exceed the allowed number of gate moves, will be invoiced to the carrier as per item number 7 below. No credit will be given for unused gate moves. 
 From
December 11, 2007 to December 10, 2009 the base rate includes up to *** of detention (item 4 C) per vessel call for the CHX service only. This is calculated on an individual call basis and credit will not be given for unused time.

 The transshipment rate is based on a container discharging from a vessel or a barge and loading to a vessel or barge. Each container will be invoiced ***
transshipment moves. 
 Base lift rate item 1(A) and Transhipment rate 1(B) to be discounted by *** percent from December 11, 2007 to
December 10, 2008 and by *** percent from December 11, 2008 to December 10, 2010. 
  

	B)	Lifting Bundles of Flat Racks/Chassis – 

  

	 	A.	If received at gate bundled then we will charge 

  

	 	a.	If can use standard spreader bar, charge will be *** base lift rate for load or discharge 

  

	 	b.	If requires wires to load/discharge, then will be charged per extra labor hourly lifting rates 

  

	 	B.	If requested to be bundled/unbundled by Horizon Lines 

  

	 	a.	If can use standard spreader bar, charge will be the following: 

  

	 	i.	*** base lift rate for load or discharge 

  

	 	ii.	contract charge for bundling/unbundling 

  

	 	 iii.
	 mounting or grounding charge for the *** chassis/flat 

  

	 	b.	If requires wires than charges will be the following: 

  

	 	i.	Per extra labor hourly lifting rates 

  

	 	ii.	Contract charge for bundling / unbundling 

  

	 	C.	If the contractor locks (of unlocks) and secures empty flatracks pierside and lifts to/from vessel as one unit, the carrier will be charged the base lift rate for each individual
flat loaded/discharged provided that the contractor follows the stow plan provided by the carrier with relation to the stowage of flatracks. (i.e. if 4 flats are locked together shoreside and lifted as one unit to the vessel, the lift charge to the
carrier will be 4 x base lift rate) 

  

			
	 2.      (A) Reefer Differential assessed to each loaded reefer for
plug/unplug services, quality check at time of discharge /loading,
 record keeping, administrative services. This rate does not include
pre-tripping, labor to fuel genset, cleaning, reefer wash,
 M&R, genset mount/dismount and fuel. Rate to be charged also for reefers
received/delivered with no vessel activity.
	  	***
per loaded reefer

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Los Angeles
	  	2	  	

 

 
  

			
	 (B)   Daily Reefer monitoring and electric charges per calendar day or portion thereof (minimum one day)
	  	***
Daily charge

 First Calendar Day to receive a *** percent discount from stated rate. 
  

			
	 3.      Installing or removing Genset
          FuelingGensets
	 	 - *** minutes at the applicable M and R man hour rate plus ***
 - *** minutes at the applicable M and R man hour rate

  

			
	 4.      A)    Standby /guarantee per Gang per
hour         Weekday, 1st Shift Straighttime
         In addition overtime
differentials (item no. 5 will apply) based on period
	  	***

  

			
	 B)     Extra Labor/Heavy Lifts per Gang per hour Weekday, 1 Shift
Straighttime
         In addition overtime differentials (item no. 5 will apply) based on
period
	  	***
	 C)     Detentions per Gang per Hour
 (see appendix 1 for list of billable and non billable detentions)
	  	
	Weekday, 1st Shift Straighttime	  	***
	 In addition overtime differentials (item no. 5 will apply) based on period
	  	

  

									
	 5.      Overtime Differentials per gang per hour 
	  	
	 Weekday, 2nd
Shift
	 	***	 		 	 Weekday,3rd
Shift
	  	***
	 Weekend, 1st
Shift
	 	***	 		 	 Weekend,2nd
Shift
	  	***
	 Weekend, 3rd
Shift
	 	***	 		 	 Holiday,1st/2nd Shift Weekdays
	  	***
		 		 		 	 Holiday, 3rd
Shift Weekdays
	  	***

  

	6.	Overtime Gate Charges – extra labor plus equipment per items 12 and 14 prorated between carriers based on percentage of moves utilizing gate. Terminal to charge only when
outside of First and Second shift on straighttime workdays (ie Monday through Friday excluding Holidays). Holiday gates which are included in the base lift rate are stated on attached schedule. 

  

			
	 7.      Extra Gate Moves (exceeding the *** gate moves included per vessel lift). Billing to be done on a
calendar month basis.
	  	***/move

  

			
	 8.      Mounting/grounding
	  	 ***/move 1st
shift weekday
 ***/move 2nd shift Weekday
 ***/move 3rd shift Weekday
 ***/move 1st/2nd shift
Weekend
 ***/move 3rd shift Weekend

  

	**	Subject to minimum labor guarantee 

 Mounting and Grounding will only be
charged when performed outside of the normal throughput cycle. This includes but is not limited to digging out empty containers by container number, for sale containers, off hire containers, containers moving to/from repair, unusual requests
requiring restacking 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Los Angeles
	  	3	  	

 

 

 of full containers etc. Each container that is required to be handled within stack to carry out request will be
charged a mount and/or ground fee. Also, this would apply if there is an overall change by Horizon Lines in the mode of operation. This rate will include drayage of container within the terminal. In regards to For Sale and Off Hire containers, if a
trucker requests a specific container number, then Contractor will charge a mounting /grounding charge per move shifted/handled, excluding the move for the container delivered. 
 In addition, in the event that the Carrier changes its mode of operation or makes a special request to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to order a dedicated
yard detail and charge Carrier at extra labor plus equipment rates. 
  

	9.	Miscellaneous Parts for Roadability -carrier to handle directly with m and r vendor. This is not applicable to Maersk owned chassis. 

  

			
	 10.    Lashing/unlashing of breakbulk cargo on board vessel
	  	 extra labor man hour rates plus
 materials at cost plus *** percent

  

			
	 12.    Equipment rental rates (when ordered by carrier)(excludes operator)

	 - Top Loader
 - Yard Hustlers
 - Empty Handler
 - Transtainer
 - Bombcart
 - Container Crane
	  	 *** per hour
 *** per hour
 *** per hour
 *** per hour
 *** per hour
 *** per hour

  

	13.	Per container lift on/lift off Rail Car at on dock rail facility             *** 

  

	14.	Extra Labor Rates per man hour subject to minimum guarantees 

  

							
	 Weekday, 1st Shift
 Weekday, 3rd Shift
 Weekend, 2nd Shift
	  	 ***
 ***
 ***
	  	 Weekday, 2nd
Shift
 Weekend, 1st Shift
 Weekend, 3rd Shift
	  	 ***
 ***
 ***

  

	15.	Line Handling – Carrier to handle payment directly with vendor 

  

	16.	Full containers received over the road and redelivered without loading or discharging to or from vessel are not included in the *** gate moves or allowed mounting/grounding and will
be billed *** per container for receipt/delivery (Excludes demurrage) 

  

			
	 17.    Terminal storage charges-
 Storage of empty containers -
	  	*** per unit per day

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Los Angeles
	  	4	  	

 

 

 Empty allowance will be determined by multiplying the carriers container lift volume each month times *** times the
number of days in the month. Excess empty container days over such allowed free days will be charged monthly at the following rate per container per day. (free days = lifts x *** x days in period) 
 Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree when the Contractor notifies the Carrier that empty storage of
equipment meets or exceeds the storage cap, Carrier will be required to present the respective terminal with an empty evacuation plan to reduce the number of empties below the cap within a fourteen day period. Daily storage cap is equal to *** empty
containers. 
  

			
	 18.    Demurrage –
	  	Terminal Operator will bill, collect, and retain demurrage from carrier according to the terminal tariff. The only exception is that the Contractor shall grant Carrier *** business days
freetime for autoracks, pallet loads, and dunnage provided that Carrier provides a list of these containers to Contractor 48 hours prior to vessel’s arrival.

  

			
	 19.    Custom’s Vacis/Security /USDA Exams/other government exams
	  	per terminal tariff
		
	 Other drays within terminal premises not associated with throughput cycle.
	  	*** one way

  

			
	 20.    Bundling of chassis/flatrack first shift weekdays
	  	*** per chassis/flat bundled plus materials

  

			
	 21.    Premounting of Empties
	  	 1st shift
weekdays *** per unit
 2nd shift weekdays *** per unit

  

	21.	Out of service equipment (containers and chassis) remaining on terminal in excess of *** calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge                                 *** per container per day

 If container is able to be stack in a normal manner and fits in one container slot then storage (item 17) only applies.

  

	22.	Any services not covered by above rates will be charged per terminal tariff. If not listed in terminal tariff or in above rates then services to be charged on extra labor basis
(item no. 14) plus equipment (item no. 12). 

			
	 23.    Fuel Surcharge
	  	*** per lift

 Fuel Surcharge is based on the Bureau of
Labor Statistics Producer Price Index No 2 Diesel Fuel with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year. If fuel prices decrease below the February 2005 level and eliminated if they fall below the
February 2004 Level. Fuel surcharge will be reviewed on January 1st and July 1st each year. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Los Angeles
	  	5	  	

 

 

 LOGO 

  

			
	 24.    Chassis Switching charge
	  	 * * */move 1st shift weekday
 * * */move 2nd shift Weekday
 * * */move 3rd shift Weekday
 * * */move 1st/2nd shift Weekend
 * * */move 3rd shift weekend

 To/From trackers equipment From/To chassis 
 Switching of reefer containers from underslung genset chassis 
 Subject to minimum labor guarantees 
  

	27.	Container Incentive Each container lift paid at base lift rate 1 A) will receive a credit of * * * per lift from December 11, 2007 to December 10, 2008 and a
credit of  * * * per lift from December 11, 2008 to December 10, 2009 on vessel invoice. 

  

	28.	Reefer Fuel will be charged based on the following formula 

 The total number of running reefers loaded and discharged from vessels and barges for the month times * * * percent times * * * gallons per reefer times the average cost of a gallon of reefer fuel for the month at fuel
vendor’s charge to Contractor plus * * * percent. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
	 Los Angeles
	  	6	  	

 

 
 Tacoma 
 Terminal Service for Horizon Lines 
 APM Terminals Pacific Ltd FACILITY 
 Baseline Rates effective to June 30, 2006 
 The rates in this Appendix effective on
December 11, 2007 shall be the numbers listed below, provided however that such numbers are only baseline numbers and each shall be increased by the amount of the increases as described in Sections 6(a), 6(b), 12(a), 12(b) and 12(c) of the
Terminal Agreement dated as of May 9, 2004 (the “Original Agreement”) during the time period prior to December 11, 2007. 
 For example,
if the rate item no. 1A for Tacoma in the Original Agreement CPI/Labor increases on July 1, 2006 by 3 percent, then the * * * baseline rate listed below shall be increased to * * *. The subsequent increases in the Original
Agreement would also be applied to this rate through December 10, 2007. All rates in the below schedule would be adjusted in a similar manner based on their percentage increase in the Original Agreement 
  

			
	 1.      A) Discharge or load - base rate -per marine lift
	  	* * *
		
	 B) Transshipment per move
	  	* * *
		
	 C) Cell to Cell within the same hatch
	  	* * *
		
	 D) Restowing container Cell to Dock to Cell
	  	* * *
		
	 Overheight unit lifted with overheight spreader (no wires)
	  	* * *

 Rate includes first shift weekdays stevedoring staff/gangs, normal container lashing/unlashing on vessel
(excluding detentions), crane rental, tractors during vessel operations, assisting in receiving and delivery, wharfage, dockage, clerking and checking during vessel operations, weighing of export containers, cargo plan preparation, roadability check
(labor only), visual seal inspection at gate and load/empty cycle to/from vessel including tir preparation. 
 Current standard operational procedure is for
imports/exports to be wheeled. Also, APMT agrees to have * * * Horizon Lines Owned empties wheeled on a daily basis with a maximum daily allowance of * * * empties on terminal. A communication plan from Horizon Lines will be
agreed to by APMT and direct the daily execution of such agreement. At which time increase in volume at the facility restricts space for a wheeled operation imports/exports will be grounded and/or wheeled empties will be restricted. At least 90 days
prior to any change of handling wheeled containers APMT will discuss options with Horizon Lines and mutually agree on a workable solution and associated costs. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

 6000 Carnegie Blvd., Charlotte, NC 28209-4637 
 Telephone: 704-571-2000     Fax: 704-571-4741 

 

 
  

 Receiving and delivery gates will be in operation from 0800 to 1200 and from 1300 to 1700* on straight time workdays.
If the terminal operator chooses to open during the lunch period or to open from 0700 to 0800 hours weekdays, there will be no extra charge to the carrier. 
 Each vessel move (excluding shifts and heavy lifts) is allowed * * * gate moves. Each month total gate moves that exceed the allowed number of gate moves, will be invoiced to the carrier as per item no. 7 below. No credit will be
given for unused gate moves. 
 The transshipment rate is based on a container discharging from a vessel or a barge and loading to a vessel or barge. Each
container will be invoiced * * * transshipment moves. 
  

	*	Specifically, 

 drivers receiving/delivering empties must
be processed by 1600 hours. 
 Drivers receiving /delivering live reefers must be processed by 1600 hours 
 Drivers receiving import loads must be processed by 1600 hours 
 Drivers delivering wheeled export loads (except live reefers) must be processed by 1630 
 Second shift gates Wednesday and
Fridays: 
 Drivers receiving/delivering empties must be processed by 2000 hours. 
 Base lift rate item 1(A) and Transhipment rate 1(B) to be discounted by * * * percent from December 11, 2007 to December 10, 2008 and by
* * * percent from December 11, 2008 to December 10, 2010 
  

	B)	Lifting Bundles of Flat Racks/Chassis – 

  

	 	A.	If received at gate bundled then we will charge 

  

	 	a.	If can use standard spreader bar, charge will be * * * base lift rate for load or discharge 

  

	 	b.	If requires wires to load/discharge, then will be charged per extra labor hourly lifting rates 

  

	 	B.	If requested to be bundled/unbundled by Horizon Lines 

  

	 	a.	If can use standard spreader bar, charge will be the following: 

  

	 	i.	* * * base lift rate for load or discharge 

  

	 	ii.	contract charge for bundling/unbundling 

  

	 	 iii.
	 mounting or grounding charge for the * * * chassis/flat 

  

	 	b.	If requires wires than charges will be the following: 

  

	 	i.	Per extra labor hourly lifting rates 

  

	 	ii.	Contract charge for bundling / unbundling 

  

	 	C.	If the contractor locks (or unlocks) and secures empty flatracks pierside and lifts to/from vessel as one unit, the carrier will be charged the base lift rate for each individual
flat loaded/discharged provided that the contractor follows the stow plan provided by the carrier with relation to the stowage of flatracks. 

 (i.e. if 4 flats are locked together shoreside and lifted as one unit to the vessel, the lift charge to the carrier will be 4 x base lift rate) 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
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	 2.
	  	(A) Reefer Differential assessed to each loaded reefer for plug/unplug services, quality check at time of discharge /loading, record keeping, administrative services. This rate does not
include pre-tripping, labor to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for reefers received/delivered with no vessel activity.	  	 * * *
 per loaded reefer

			
		  	(B) Daily Reefer monitoring and electric charges per calendar day or portion thereof (minimum one day charge)	  	 * * *
 Daily charge

			
		  	First Calendar Day to receive a * * * percent discount from stated rate.	  	
		
	 3.
	  	Installing or removing Genset –* * * minutes at the applicable M and R man hour rate plus * * *
			
	 4.
	  	 A) Standby /guarantee per Gang per hour
                     Weekday, 1st Shift Straighttime
 In addition overtime differentials (item no.
5 will apply) based on period
	  	* * *
			
		  	 B) Extra Labor/Heavy Lifts per Gang per hour              Weekday, 1st Shift Straighttime
 In addition overtime differentials (item no. 5 will apply) based on period
	  	* * *
			
		  	 C) Detentions per Gang per Hour
                                     Weekday, 1st Shift Straighttime
 (see appendix 1 for list of billable and non billable detentions) 
 In addition overtime differentials (item no. 5 will apply) based on period
	  	* * *

  

									
					
	 5.
	  	Overtime Differentials per gang per hour	  		  		  	
		  	Weekday, 2nd Shift	  	* * *	  	Weekday, 3rd Shift	  	* * * 
		  	Weekend, 1st Shift	  	* * * 	  	Weekend, 2nd Shift	  	* * *
		  	Weekend, 3rd Shift	  	* * * 	  	Holiday, 1st/2nd Shift Weekdays	  	 * * *

		  		  		  	Holiday, 3rd Shift Weekdays	  	 * * *

  

	6.	Overtime Gate Charges – extra labor plus equipment per items 12 and 13 below prorated between carriers based on percentage of moves utilizing gate outside standard terminal
gate hours. Current standard gate hours are 0800 to 1700 Monday through Friday on straighttime workdays. If the terminal operator chooses to open during the lunch period or operate flex gates there will be no extra charge to the carrier. Overtime
gate charges also apply to ILWU holidays. Holiday gates which are included in the base lift rate are stated on attached schedule. 

 A flat
rate will apply for second shift gate on Tuesday or Thursday of * * * per shift, and a flat rate on Wednesday or Friday of * * * per shift. If Horizon Lines wishes to remain open from 1700 – 1800 any night this
cost will be absorbed by Horizon Lines. 
 A flat rate of * * * will be charged for
1st /2nd shift gate on Saturdays. 
  

			
	 7.      Extra Gate Moves (exceeding the * * * gate moves included per vessel lift). Billing to be done
on a calendar month basis.
	  	* * * /move

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
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	8.    Mounting/grounding	  	* * */move 1st shift weekday
		  	* * */move 2nd shift Weekday
		  	* * */move 3rd shift Weekday
		  	* * */move 1st/2nd shift Weekend
		  	* * */move 3rd shift Weekend

  

	**	Subject to minimum labor guarantees 

 Mounting and Grounding will only be
charged when performed outside of the normal throughput cycle. This includes but is not limited to digging out empty containers by container number, for sale containers, off hire containers, containers moving to/from repair, unusual requests
requiring restacking of full containers etc. Each container that is required to be handled within stack to carry out request will be charged a mount and/or ground fee. Also, this would apply if there is an overall change by Horizon Lines in the mode
of operation. This rate will include drayage of container within the terminal. In regards to For Sale and Off Hire containers, if a trucker requests a specific container number, then Contractor will charge a mounting /grounding charge per move
shifted/handled, excluding the move for the container delivered. 
 In addition, in the event that the Carrier changes its mode of operation or makes a
special request to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to order a dedicated yard detail and charge Carrier at extra labor plus equipment rates. Mounting/Grounding charges do not apply to the
switch out of insulated containers occurring two times per year however drayage charges do apply. 
  

	9.	Miscellaneous Parts for Roadability -carrier to handle directly with m and r vendor. This is not applicable to Maersk owned chassis. 

  

			
	 10.    Lashing/unlashing of breakbulk cargo on board vessel
	  	 extra labor man hour rates plus
 materials at cost
plus * * * percent

	11.	Maintenance - carrier to handle directly with m and r vendor 

  

	12.	Equipment rental rates (when ordered by carrier) (excludes operator) 

  

			
	– Top Loader	  	* * * per hour
	– Yard Hustlers	  	* * * per hour
	– Empty Handler	  	* * * per hour
	– Transtainer	  	* * * per hour
	– Bombcart	  	* * * per hour
	– Container Crane	  	* * * per hour

  

	13.	Extra Labor Rates per man hour subject to minimum guarantees 

  

							
	Weekday, 1st Shift	  	* * *	 	Weekday, 2nd Shift	  	* * *
	Weekday, 3rd Shift	  	* * *	 	Weekend, 1st Shift	  	* * *
	Weekend, 2nd Shift	  	* * *	 	Weekend, 3rd Shift	  	* * *

  

	14.	Line Handling carrier to make payment directly to vendor 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

	

  

					
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	15.	Full containers received over the road and redelivered without loading or discharging to or from vessel are not included in the * * * gate moves or allowed
mounting/grounding and will be billed * * * per container for receipt/delivery (Excludes demurrage) 

  

	16.	Terminal storage charges- 

			
	 Storage of empty containers -
	  	* * * per unit per day

 Empty allowance will be determined by multiplying the carriers container lift volume each month
times * * * times the number of days in the month. Excess empty container days over such allowed free days will be charged monthly at the following rate per container per day. (free days = lifts x * * * x days in period)

 In any event when terminal notifies carrier of excess empties on terminal, carrier will provide an evacuation plan to reduce empties to an
acceptable level within the following 14 days. 
 Notwithstanding the means of calculating Carrier’s empty allowance stated above, the
parties agree when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds the storage cap, Carrier will be required to present the respective terminal with an empty evacuation plan to reduce the number of empties below
the cap within a fourteen day period. Daily storage cap is equal to * * * empty containers. 
 Empties at offdock will not be included in storage
days. Empties at offdock will be charged the lease rate plus the storm sewer rate plus the lease hold tax for the portion of property utilized. Utilization is deterimined by dividing the number of containers actually stored on facility by
* * *. 
 Ie if there were * * * containers on facility that would equal billing of 1 acre. Subject to continued port agreement.

  

			
	 17. Demurrage –
	  	Terminal Operator will bill, collect, and retain demurrage from carrier per terminal tariff in effect on October 15, 2006. Below is table of rates from terminal tariff.

  

							
	  	  	 Charge per day
 for the first
* * *
days or fraction
thereof
	 	 	 Charge per day
 for each
additional
 day over * * *
days or fraction
thereof
	 
	 Inbound
	  			 		
	 up to 20 ft.
	  	* * *	 	 	* 	* *
	 Over 20 ft to 40 ft:
	  	* * *	 	 	* 	* *
	 Over 40’
	  	* * *	 	 	* * *	 
	 Outbound
	  			 		
	 20 ft.
	  	* 	* *	 	* 	* *
	 Over 20 ft to 40 ft:
	  	* 	* *	 	* 	* *
	 Over 40’
	  	* 	* *	 	* * *	 

  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
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 Freetime for import and export cargo is * * * business days for dry containers and
* * * business days for temperature controlled containers The only freetime exceptions are that the Contractor shall grant Carrier * * * business days freetime for autoracks, pallet loads, and dunnage provided that Carrier
provides a list of these containers to Contractor 48 hours prior to vessel’s arrival. 
  

					
	 18.
	  	Custom’s Vacis/Security /USDA Exams/other government exams	  	per terminal tariff
			
		  	Other drays within terminal premises not associated with throughput cycle.	  	* * * one way
			
		  	Dray charge to empty annex lot for seasonal equipment change	  	* * * per container

  

					
	 19.
	  	Bundling of chassis/flatracks first shift weekdays	  	* * * per chassis/flat bundled plus materials

  

	20.	Out of service equipment (containers and chassis) remaining on terminal in excess of * * * calendar days w/o approval from carrier to proceed with necessary repairs will
be assessed a storage charge         * * * per container per day 

 If
container is able to be stack in a normal manner and fits in one container slot then storage (item 16) only applies. 
  

	21.	Any services not covered by above rates will be charged per terminal tariff. If not listed in terminal tariff or in above rates then services to be charged on extra labor basis
(item no. 13) plus equipment (item no. 12). 

  

					
	 22
	  	Fuel Surcharge	  	* * * per lift

 Fuel Surcharge is based on the Bureau of
Labor Statistics Producer Price Index No 2 Diesel Fuel with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year. If fuel prices decrease below the February 2005 level and eliminated if they fall below the
February 2004 Level. Fuel surcharge will be reviewed on January 1st and July 1st each year. 
  

					
	 23.
	 	 Chassis Switching charge
	  	* * * /move 1st shift
weekday
		 		  	* * * /move 2nd shift
Weekday
		 		  	* * * /move 3rd shift
Weekday
		 		  	* * * /move 1st/2nd shift Weekend
		 		  	* * * /move 3rd shift
weekend

 To/From truckers equipment From/To chassis 
 Switching of reefer containers from underslung genset chassis 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

					
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 24. Container Incentive         Each container lift paid at base lift
rate 1 A) will receive a credit of * * * per lift from December 11, 2007 to December 10, 2008 and a credit of * * * per lift from December 11, 2008 to December 10, 2009 on vessel invoice. 
 25. Reefer Fuel will be charged based on the following formula 
 The total number of running reefers loaded and discharged from vessels and barges for the month times * * * percent times * * * gallons per reefer times the average cost of a gallon of reefer fuel
for the month at fuel vendor’s charge to Contractor plus * * * percent. 
  

	***	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

  

 6000 Carnegie Blvd, Charlotte, NC 28209-4637 
 Telephone: 704-571-2000      Fax: 704-571-4741Renewal Agreement dated as of Decemer 1, 2006

 Exhibit 10.40 
 AMENDMENT NO. 3 
 TO 
 AMENDED AND RESTATED 
 CREDIT AGREEMENT 
 This AMENDMENT NO. 3 to the AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 12, 2006 (this “Amendment”), is entered into
among HORIZON LINES, LLC, a Delaware limited liability company (the “Borrower”), UBS AG, STAMFORD BRANCH, as administrative agent (in such capacity, the “Administrative Agent”), UBS AG, STAMFORD BRANCH, as Issuing
Bank (in such capacity, the “Issuing Bank”) and the Lenders party hereto, and amends the Amended and Restated Credit Agreement dated as of April 7, 2005 (as amended through the date hereof and as may be further amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”) entered into among the Borrower, the institutions from time to time party thereto as lenders, UBS AG, Stamford Branch, as administrative agent (in such
capacity, the “Administrative Agent”). HORIZON LINES HOLDING CORP., a Delaware corporation (the “Co-Borrower”), and the other parties thereto. Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to them in the Credit Agreement. 
 WITNESSETH: 
 WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent amend the Credit Agreement to effect the changes
described below in Section One; 
 WHEREAS, Section 9.02 of the Credit Agreement provides that the Credit Agreement may
be amended, modified and waived from time to time; 
 NOW, THEREFORE, in consideration of the premises and for
other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows: 
 SECTION ONE     Amendments. 
 (a) The following definitions shall be added to Section 1.01 of the
Credit Agreement: ““Amendment No. 3. Effective Date” shall mean the date that Amendment No. 3 to this Agreement shall become effective in accordance with its terms.” 
 (b) The definition of “Excess Cash Flow” in Section 1.01 of the Credit Agreement shall be amended by adding to clause (f) of such
definition, immediately after the word “period” appears in such clause (f), the following; “(other than prepayments or repayments of any Loans pursuant to Section 2.11(a))”. 
 (c) The following sentences shall be added at the end of the definition of “Revolving Commitment” in Section 1.01 of the Credit Agreement:
“Following the Amendment No. 3 Effective Date, the amount of each Lender’s Revolving Commitment shall be set forth on 

 
Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable. The initial
aggregate amount of the Lenders’ Revolving Commitments from and after the Amendment No. 3 Effective Date shall be $75,000,000.” 
 (d) Section 2.02(d)(w) of the Credit Agreement is hereby amended by replacing the reference to “$50,000,000” therein with “$75,000,000”. 
 (e) Section 2.11(d) of the Credit Agreement is hereby amended by (i) replacing the reference to “2006” therein with “2007” and (ii) adding, immediately after the words “Excess
Cash Flow for such fiscal year” appear in such Section 2.11(d), the following “minus 100% of the aggregate amount of Tranche C Loans prepaid during such fiscal year pursuant to Section 2.11(a) and, to the extent there is
an equivalent reduction in the Revolving Commitments made simultaneously with such prepayment, 100% of the Revolving Loans prepaid during such fiscal year pursuant to Section 2.11(a)”. 
 (f) Section 6.04(i) of the Credit Agreement is hereby amended by replacing the reference to (x) “$30,000,000” therein to
“$120,000,000” and (y) “$100,000,000” therein to “$200,000,000”. 
 (g) Section 6.08(a)(xi) of the
Credit Agreement is hereby amended by replacing the reference to “$15,000,000” therein to “$36,000,000”. 
 (h)
Section 6.14 of the Credit Agreement is hereby amended by (x) replacing clause (a) of such Section 6.14 thereof in its entirety with the following: “(a) expenditures used to acquire shipping containers, chassis, gensets,
cranes, container handling equipment, over-the-road and yard tractors, other yard and terminal vehicles and equipment or other related Vessel assets which were, immediately prior to such purchase, leased or subleased by Holdings or any of its
subsidiaries shall, solely for the purposes of this Section 6.14, be deemed not to be Capital Expenditures for such fiscal year; provided that the amount of such expenditures made pursuant to this clause (a) shall not exceed
(x) $15,000,000 in the aggregate in any fiscal year (except that to the extent that $15,000,000 exceeds the aggregate expenditures made pursuant to this clause (a) in such fiscal year, such excess may be carried over and used for such
expenditures in the fiscal year following such fiscal year, so long as the limitation in the immediately succeeding clause (y) shall not be violated by such carry-over) or (y) $40,000,000 in the aggregate during the term of this
Agreement,” (y) in clause (b) of such Section 6.14 thereof, deleting the words “50.00% of” and (z) the numbers in the right column of the chart at the end of such Section 6.14 opposite the years 2006, 2007,
2008, 2009, 2010 and 2011 shall all be deemed deleted and replaced with “$40,000,000”. 
 (i) Schedule 2.01 shall be amended to
reflect the increased Revolving Commitments as of the Amendment No. 3 Effective Date. 
 SECTION TWO    
Conditions to Effectiveness. This Amendment shall become effective as of the date (the “Amendment No. 3 Effective Date”) if the Administrative Agent shall have received counterparts of this Amendment executed by
(i) the Borrower, (ii) 

 
UBS AG, Stamford Branch, in its capacity as Issuing Bank and as Administrative Agent and (iii) fully executed Confidential Lender Authorizations (as
defined below) from the Required Lenders. The effectiveness of this Amendment (other than Sections Five, Six and Eight hereof) is conditioned upon the accuracy of the representations and warranties set forth in Section Three hereof. 
 SECTION THREE     Representations and Warranties. In order to induce the Lenders party hereto and the Issuing Bank to enter
into this Amendment, the Borrower represents and warrants to each of the Lenders that both before and after giving effect to this Amendment: (a) no Default or Event of Default has occurred and is continuing and (b) all of the
representations and warranties in the Credit Agreement are true and complete in all material respects on and as of the date hereof as if made on the date hereof (or, if any such representation or warranty is expressly stated to have been made as of
a specific date, as of such specific date). 
 SECTION FOUR     Reference to and Effect on the Credit Agreement.
On and after the Amendment No. 3 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring the Credit Agreement, and each reference in each
of the Loan Documents to “the Credit Agreement,” “thereunder,” “thereof or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as further amended by this Amendment.
The Credit Agreement and each of the other Loan Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. The execution, delivery and
effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan
Documents. 
 SECTION FIVE     Costs and Expenses. Borrower agrees to pay all reasonable costs and expenses of the
Administrative Agent in connection with the preparation, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, if any (including, without limitation, the reasonable fees and expenses of Cahill
Gordon & Reindel LLP, counsel to the Administrative Agent). 
 SECTION SIX     Execution in Counterparts.
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the
same agreement. Delivery of an executed counterpart of a signature page to this Amendment by telecopier or electronic mail shall be effective as delivery of a manually executed counterpart of this Amendment. 
 SECTION SEVEN     Confidential Lender Authorizations. “Confidential Lender Authorizations” are the
confidential lender authorizations in the form distributed to each of the Lenders in connection with this Amendment. Each Lender that signs a Confidential Lender Authorization shall be deemed to have approved this Amendment and shall be further
deemed for the purposes of the Loan Documents to have approved this Amendment. Each Lender signatory to a Confidential Lender Authorization agrees that such Lender shall not be entitled to receive a 

 
copy of any other Lender’s Confidential Lender Authorization, but agrees that a copy of such Confidential Lender Authorization may be delivered to
Borrower. 
 SECTION EIGHT Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK. 
 [Signature Pages Follow] 

					
	HORIZON LINES, LLC, as Borrower
		
	By: 	 	/s/ Michael T. Avara
		 	Name:	 	MICHAEL T. AVARA
		 	Title:	 	VP, TREASURER & INVESTOR RELATIONS

					
	UBS AG, STAMFORD BRANCH,
	as Issuing Bank and Administrative Agent
		
	By: 	 	/s/ UBS AG
		 	Name:	 	
		 	Title:	 	
		
	By: 	 	/s/ UBS AG
		 	Name:	 	
		 	Title:

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