Document:

TP1 Space Charter and Transportation Service Contract dated May 9, 2004

 Exhibit 10.16 
  
 EXECUTION COPY 
  
 TP1 SPACE CHARTER AND TRANSPORTATION SERVICE 
 CONTRACT 
 between 
 A.P. Møller – Maersk A/S 
 and 
 Horizon Lines, LLC 
  

	Article 1:    	Name. 

  
 The name of this Agreement is the TP1 Space Charter and Transportation Service Contract (the “Agreement”). 
  

	Article 2:    	Purpose. 

  
 The purpose of this Agreement is for Horizon Lines, LLC to charter space to, and transport cargo and containers for, Maersk Sealand and to document the Parties’ agreement set out herein. 
  

	Article 3:    	Parties. 

  
 The names and addresses of the Parties are the following: 
  

	 	(1)	Horizon Lines, LLC (“Horizon”) 

 4064 Colony
Road, Suite 200 
 Charlotte, North Carolina 28211 
 USA 
  

	 	(2)	A.P. Møller as managing owner for and on behalf of A.P. Møller-Maersk 

 A/S trading as Maersk Sealand (“Maersk Sealand”) 
 50, Esplanaden 
 DK-1098 Copenhagen 
 Denmark 
  
 Horizon and Maersk Sealand are hereinafter collectively referred to as the
“Parties” and each individually referred to as a “Party”. 
  

	Article 4:    	Scope. 

  
 Maersk Sealand represents that it is an ocean common carrier in United States foreign commerce and Horizon represents that it is a water carrier in the U.S. non-contiguous domestic trade which operates vessels with
voyages between the United States West Coast Ports referred to in the following paragraph, Hawaii and the Territory of Guam on the one hand and the Far East Ports of Hong Kong and Kaohsiung, Taiwan on the other, and vice-versa, all as more
particularly set out in the Vessel Service Proforma attached hereto as Appendix 2. Maersk Sealand desires to charter space aboard certain of Horizon’s vessels and purchase transportation services for carriage of cargo transported by Maersk
Sealand under its bills of lading as an ocean common carrier in United States foreign commerce as more fully set forth herein. 
  

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 The geographic scope of this Agreement shall cover the foreign trade handled by Maersk Sealand between (a) the United
States ports in Tacoma, Washington; Oakland, California; Honolulu, Hawaii; and the Territory of Guam and U.S. inland and coastal points served via such ports, on the one hand, and (b) the ports in Hong Kong and Kaohsiung, Taiwan and inland and
coastal points served via such ports on the other hand (the “Foreign Trade”). 
  
 This Agreement shall also cover the domestic trade handled by Horizon between the Jones Act corridors shown on Appendix 1-A attached hereto (such trade other than the trade lanes which comprise the TP1 Service, as that term is defined in
Article 5.1.1 below, the “Jones Act Trade”). 
  
 The Foreign Trade and
the Jones Act Trade are referred to herein collectively as the “Trade”. 
  
 Article 5:     The Charter and Charter Hire 
  

	5.1.1 	Asia-U.S. West Coast. 

  
 Horizon shall charter to Maersk Sealand, and Maersk Sealand shall charter space (on a take or pay basis) from Horizon for the term of this Agreement
equivalent to *** forty foot equivalent units (“FEUs”) from the marine terminals, at Maersk Sealand’s option, located in Hong Kong or Kaohsiung, Taiwan and the marine terminals at the U.S. West Coast ports shown in Appendix 2, per
weekly sailing, used or unused, in the Trade on vessels employed by Horizon in the weekly TP1 service (the “TP1 Service”), at a rate of $*** per FEU for the period from the effective date of this Agreement through December 10, 2004 and at
a rate of $*** per FEU effective December 11, 2004 for the balance of the term of this Agreement subject to fuel surcharge methodology and invoicing procedures used between the parties on the date hereof, with no increase during the term of this
Agreement related to crew costs or any other labor cost increases incurred by Horizon to apply to such rates. Horizon agrees that its vessels carrying cargo on the TP1 Service arriving or leaving Kwai Chung, Hong Kong will berth at Modern Terminals
at any berth designated by Maersk Sealand. Maersk Sealand shall have the right to use available space on Horizon’s vessels sailing between Kaohsiung and Hong Kong for way-port cargo. 
  
 To the extent that additional capacity is from time to time available,
Maersk Sealand shall have the right, but not the obligation, to charter from Horizon additional space in the Trade on the TP1 Service at the rates set out on Appendix 1-A attached hereto. 

	***	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 406 of
the Securities Act. 

  

 2 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

	5.1.2 	Guam – Asia. 

  
 Horizon agrees to carry for Maersk Sealand, ***, *** FEUs per weekly sailing of international cargo shipped from Guam to Asia via the TP1 Service,
provided however that in such case, Maersk Sealand shall be liable for all loaded terminal charges in Guam. Horizon shall charge any further FEUs shipped pursuant to this Section 5.1.2 in excess of the amount specified above an amount of ocean
freight as shown on Appendix 1-A in addition to all loaded terminal charges in Guam. All U.S. domestic cargo that Maersk Sealand requests that Horizon ship to or from Guam and/or Saipan shall be subject to the rates, rules and charges in the
applicable Horizon tariff. All other international cargo shipped to or from Guam and/or Saipan shall be subject to the charges shown in Appendix 1-A. 
  
 For purposes of this Agreement, “US domestic cargo” means cargo transported between two points located in either a state or territory of the
United States. “International cargo” means cargo transported between either any two non-US points or with only one point being located in a state of territory of the United Sates. 
  

	5.1.3 	Hong Kong/Kaohsiung. 

  
 Both Parties shall work together in good faith and use their respective reasonable best efforts to oppose any attempt (or to cause the repeal of any
successful attempt) by any governmental or regulatory authority to prohibit by law, regulation or order Horizon’s vessels from calling at any terminal located in either Hong Kong or Kaohsiung pursuant to this Agreement. If, however, any
governmental or regulatory authority does prohibit by law, regulation or order Horizon’s vessels from calling at either the Hong Kong or Kaohsiung terminals discussed above on the basis of such vessels’ age, flag or substantially similar
characteristics, then the Parties shall negotiate in good faith to agree upon other Asian ports to substitute such terminals for Hong Kong or Kaohsiung, as the case may be. If after ninety (90) days the Parties are unable to agree on such
alternative arrangements, Maersk Sealand may terminate the TP1 Service with respect to the Asia-U.S. West Coast tradelane only by delivery of a written notice to such effect to Horizon, which termination shall become effective sixty (60) days after
receipt of such notice. During such ninety (90) and sixty (60) day periods, respectively, the slot rates or the obligation to purchase slots shall be adjusted if the vessels cannot be utilized up to the full *** FEUs. 
  
 At Maersk Sealand’s option, with respect to FEUs in the Asia U.S. West
Coast tradelane purchased under the TP1 Service, there shall be substituted for Hong Kong or Kaohsiung any other terminal at any other port, provided, however, 
  

	 	(a)	 each of Horizon’s vessels operating in the TP1 Service pursuant to this provision shall, after calling at Guam, and before returning the U.S. West Coast, call
at least one port not located in the United States, and be able to 

  

	***	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 406 of
the Securities Act. 

  
 3 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

	 	 
continue to meet vessel schedule reliability for the remainder of the service in the Trade; 

  

	 	(b)	Horizon shall be entitled to increase its rates for Charter Hire payable by Maersk Sealand hereunder for all FEUs subject to this provision to reflect fully all increases in
Horizon’s costs related to the substitution of another port for Hong Kong or Kaohsiung (including, without limitation, increased port charges), and 

  

	 	(c)	Horizon may make reasonable modifications to its Vessel Service Proforma schedule for the TP1 Service attached hereto as Appendix 2 to reflect such substitution.

  

	 	(d)	If as a result of Maersk Sealand’s election above, such substitute terminal requires Horizon to execute a terminal contract separate from Maersk Sealand’s terminal
contract with that terminal, Horizon shall execute such terminal contract. Maersk Sealand shall use its reasonable efforts to assist Horizon to negotiate a terminal contract that permits Horizon to terminate such terminal contract upon three months
(or less if agreed by the terminal operator) written notice to the terminal operator. Maersk Sealand shall provide Horizon no less than three (3) months written notice (or less if the terminal contract termination requires less notice) prior to the
termination date of Maersk Sealand’s contract with the same terminal operator; provided that (i) Horizon accepts such three (3) month (or less) term and (ii) Horizon confirms to Maersk Sealand’s satisfaction that Horizon’s terminal
contract has a termination notice period of three (3) months or less. 

  

	5.1.4	Delivery of FEUs to Asia. 

  
 During the term of this Agreement, Horizon shall deliver to Maersk in Asia an average of *** FEUs of containers per week (such containers to be tendered
to Horizon by Maersk Sealand pursuant to the Equipment Interchange Agreement set forth in Appendix 3 hereto), and such delivery shall be made in multiple installments reasonably distributed throughout each calendar year. During each
calendar quarter, Horizon shall provide a minimum of *** FEU containers to Maersk Sealand in Asia provided an equal number of containers are tendered to Horizon by Maersk Sealand in accordance with terms of the Interchange Agreement set forth
in Appendix 3 hereto. If Horizon does not provide such minimum, subject to exception for force majeure, Horizon shall indemnify Maersk Sealand for all additional costs incurred by Maersk Sealand as a result of such shortfall. 
  

	5.1.5	Empty Costs. 

  
 All empty costs in Hawaii or Guam and all loading costs (except such full loading or unloading costs associated with containers moved for the account of
Maersk Sealand) at all Maersk Sealand’s terminals located on the West Coast of the continental U.S. shall be borne by Horizon, and all empty costs in Asia shall be borne by Maersk Sealand. 
  

	***	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 406 of
the Securities Act. 

  
 4 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

	5.1.6	Horizon fixed slot purchase on Maersk Sealand transpacific services. 

  

Horizon shall charter space (on a take or pay basis) from Maersk Sealand of at least *** FEU per week (to be increased or decreased subject to mutual
agreement of the parties) one way from Kaohsiung, Taiwan, or alternately (at Maersk Sealand’s sole discretion), Hong Kong, PRC to Los Angeles or Oakland. The following rates shall apply: 
  

	 	(a)	For US domestic cargo originating in Saipan: $*** per FEU, plus handling charges and fuel surcharge methodology and invoicing procedures currently used between the parties on the
date hereof. 

  

	 	(b)	For international cargo, the rates, rules and charges in the applicable Maersk Sealand tariff for such cargo. 

  

	5.1.7	Payment Terms 

  

	 	(a)	All invoices submitted by Horizon to Maersk Sealand for services rendered are due and payable by electronic wire transfer upon receipt. Receipt shall include all documentation to
support such invoice. If payment is not received within thirty (30) days of the date of invoice, interest at the rate of *** per month shall be assessed on balances remaining past the above mentioned thirty (30) day due date. Maersk Sealand shall
not pay interest on specific amounts that Maersk Sealand has indicated by written notice to Horizon are in dispute. In the event interest of *** per month exceeds the legal rate of interest allowed by the governing law of this Agreement, interest
rate for the delinquent payment shall be the maximum rate permitted by such governing law. 

  

	 	(b)	Any extension of time for payment granted by Horizon shall not constitute a waiver of any right of Horizon hereunder and no extension of time for payment shall relieve any default
in payment by Maersk Sealand, unless in writing and signed by an officer of Horizon. 

  

	 	(c)	In order to allow Horizon to continue its current repayment of construction differential subsidy payments required under the Merchant Marine Act, 1936, as amended, Maersk Sealand
shall provide Horizon with a calculation of the amount of the gross revenue derived by Maersk Sealand from each Horizon vessel which is not twenty-five (25) or more years of age on an annual calendar year, per-vessel basis, and shall cooperate with
any audit of such information requested by the U.S. Maritime Administration. 

  

	5.2	U.S. Surface Transportation Board Transportation Service Contract 

  

	5.2.1	Tacoma/Oakland/Hawaii/Guam 

  
 Horizon agrees to transport non-U.S. domestic cargo for Maersk Sealand (on a take or pay basis) of *** FEUs per week in the TP1 Service between the
Tacoma, Washington or Oakland, California terminals operated by an affiliate of Maersk Sealand and Horizon’s Honolulu, Hawaii or Guam terminal, for the term of this Agreement at a rate of $*** per FEU from the effective date of this Agreement
through December 10, 2004 and at a rate of $*** per FEU, effective December 11, 2004, subject to fuel surcharge methodology and invoicing procedures used between the parties on the date hereof, with no increase during the term of this
Agreement related to crew costs or any other labor cost increases incurred by Horizon to apply to such rates; provided Maersk Sealand shall pay for an additional *** FEUS/week on the same terms as above or whether Horizon can provide Maersk Sealand
such *** FEUS provided further that Horizon will use its best efforts to provide Maersk Sealand of such *** FEUS under the same terms as above but shall not be required to roll Horizon cargo in order to place Sealand cargo on a 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 406 of
the Securities Act. 

  
 5 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

	5.2.2	Jones Act Corridor Rates 

  
 With respect to any of the Jones Act Trade lanes indicated on Appendix 1-A attached hereto, Maersk Sealand may tender, and Horizon shall guarantee such
number of slots to Maersk Sealand as indicated in Appendix 1-B for the term of this Agreement at rates per FEU as indicated on Appendix 1-A, subject to volumes not exceeding past practice (the “Jones Act Corridor Rates”). 
  

	5.2.3	Waiver of Rights and Remedies Under ICC Termination Act 

  
 For purposes of this Article 5.2, the transportation contract made hereunder is entered into pursuant to the authority under Chapter 141 of the ICC
Termination Act of 1995, 49 U.S.C. 14101(b). Horizon and Maersk Sealand waive all rights and remedies under Part B of Subtitle IV, title 49, United States Code for the transportation covered by this Article 5.2; provided, however, that the Parties
do not waive the provisions governing registration, insurance, or safety fitness. 
  

	5.2.4	Rate Adjustment 

  
 The Jones Act Corridor rates during the period of this Agreement shall be adjusted only in the event of fuel cost increases. Such adjustments shall be
applied to all Jones Act Corridor Rates in all years in which they occur. 
  
 The Jones Act Corridor Rates for each year of this Agreement shall be calculated based upon the initial Jones Act Corridor Rates and adjusted upward for specific quantifiable cost increases if expressly
provided herein incurred, but in no one year shall exceed a *** annual increase over the initial Jones Act Corridor Rates subject to fuel surcharge methodology and invoicing procedures used between the parties on the date hereof; provided that such
rates shall not include any increase during the term of this Agreement related to crew costs or any other labor cost increases incurred by Horizon 
  

	***	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 406 of
the Securities Act. 

  
 6 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 During the term of this Agreement, fuel cost increases will be applied to all Jones Act Corridor
Rates in any and all years in which they are incurred. 
  
 If
fuel cost increases result in an annual Jones Act Corridor Rate increase exceeding *** in a specific year, then such extra-ordinary increase will, on an exceptional basis, be applied to the Jones Act Corridor Rates. The rate adjustment provisions of
this Article 5.2.4 do not apply to cargo moving pursuant to Horizon tariffs hereunder. 
  
 Article 6:  Operations 
  

	6.1	Reliability Commitment. 

  
 Horizon agrees that, in each calendar quarter, at least *** of all vessels carrying FEUs shipped pursuant to the TP1 Service departing their points of
embarkation in such quarter will arrive at their intended points of disembarkation On Schedule (as defined below) (the “Reliability Commitment”). 
  
 A vessel shall be deemed to arrive On Schedule if, subject to Article 10, such vessel arrives at its point of disembarkation at or before the time twelve
hours following the time shown for such arrival on Horizon’s Vessel Service Proforma Schedule attached hereto as Appendix 2 in effect for the TP1 Service, as the same may from time to time be amended. 
  
 If Horizon breaches the Reliability Commitment in any calendar quarter, and
such breach is not due to any fault of Maersk Sealand or any of its affiliated companies or a terminal operator designated by Maersk Sealand under this Agreement, Maersk Sealand may deliver a notice of warning to Horizon. If, following receipt of
such warning by Horizon, Horizon breaches the Reliability Commitment during any two future calendar quarters, and such breach is not due to any fault of Maersk Sealand or any of its affiliated companies or a terminal operator designated by Maersk
Sealand under this Agreement, then the Parties shall negotiate in good faith to reach alternative arrangements that preserve the economic benefits to each party contemplated by the TP1 Service. If after ninety (90) days the Parties are unable to
agree on such alternative arrangements, Maersk Sealand may terminate its participation in the TP1 Service by delivery of a written notice to Horizon to such effect, which termination shall become effective sixty (60) days after receipt of such
notice. 
  

	***	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 406 of
the Securities Act. 

  
 7 

	6.2	Service Adjustments 

  
 Horizon shall consult with Maersk Sealand prior to any temporary or permanent adjustment(s) in sailing schedules, port calls, itineraries or otherwise of
the service in the Trade. If, after such discussions and considerations the Parties fail to agree on an appropriate adjustment and should Horizon subsequently decide to discontinue sailings to a specified port on the current itinerary, then Horizon
shall give Maersk Sealand a minimum of three (3) months prior written notice before the discontinuation takes effect. Within thirty (30) days upon receipt of such notice, Maersk Sealand may either: 
  

	 	(a)	terminate this Agreement by delivery of a written notice to Horizon or; 

  

	 	(b)	adjust number of slots purchased from Horizon equivalent to number of FEUs lost due to sailing adjustment. 

  
 In the event Horizon provides an alternative sailing within the geographic
scope of this Agreement to/from a specified port on the then current itinerary that has been eliminated, then Horizon shall provide and Maersk Sealand may purchase space and tender cargo to Horizon for transportation on the replacement sailing on
the same terms and conditions as originally provided herein. 
  
 Notwithstanding the foregoing, in the event that Horizon must temporarily dry-dock a vessel engaged in the Trade hereunder, Horizon shall deploy a substitute vessel to the Trade during the period of such dry-docking. In the event the
capacity of the substitute vessel differs from that of the dry-docked vessel, Maersk Sealand shall have the following options individually, in combination or collectively:  
  

	 	(a)	utilize an allocation of capacity equal to *** of the substitute vessel, but shall have no obligation which exceeds its applicable commitment, in FEU’s, hereunder and
shall only pay for actual used FEUs, or; 

  

	 	(b)	utilize an equivalent number of slots Horizon may make available for Maersk Sealand containers on the subsequent sailing at no cost to Maersk Sealand or; 

 

	 	(c)	arrange its own alternative transportation, and not pay slot cost to Horizon for the Maersk Sealand containers affected. 

  

	6.3	Port Bypasses and Port Time Adjustments. 

  
 Except as provided elsewhere herein, Horizon shall make day-to-day decisions regarding whether any port should be by-passed, port times adjusted or any
other day-to-day operational matter involving the service in the Trade. 
  

	***	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 406 of
the Securities Act. 

  
 8 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 In the event any decision to by-pass a port or not to load or discharge Maersk Sealand’s
containers; 
  

	 	•	 	is due to a force majeure occurrence as defined in Article 10 or; 

  

	 	•	 	is due to port related delays in Hong Kong, Kaohsiung, Tacoma or Oakland caused by Maersk Sealand or its affiliates, contractors or agents. In this connection port delays shall be
limited to an hour-to-hour basis, i.e. a one hour delay caused by Maersk Sealand or its affiliates, contractors or agents in one of the above ports will allow Horizon to reduce portstay in one of the other of above ports by one hour only then Maersk
Sealand shall remain fully responsible to Horizon for all its obligations under this Agreement including payment of all compensation for space provided to it. 

  
 In the event any decision to by-pass a port or not to load or discharge Maersk Sealand’s containers; 
  

	 	•	 	is not due to a force majeure occurrence as defined in Article 10, and 

  

	 	•	 	is not due to port related delays in Hong Kong, Kaohsiung, Tacoma or Oakland caused by Maersk Sealand or its affiliates, contractors or agents; or 

  

	 	•	 	is due to port delay in Hong Kong caused by Horizon or its affiliates, contractors or agents’ non-performance, 

  
 then Maersk Sealand has the following options; 
  

	 	(a)	accept an offer by Horizon to provide alternate water service for the Maersk Sealand containers affected, in which Horizon will hold Maersk Sealand harmless from all increased
operational costs occurring as a consequence of such by-pass. Operational costs shall include, but not be limited to, increased stevedoring, shiftings between alternate terminals and/or additional transshipment costs or; 

  

	 	(b)	utilize an equivalent number of slots Horizon may make available for Maersk Sealand containers on the subsequent sailing at no cost to Maersk Sealand or; 

 

	 	(c)	arrange its own alternative transportation, and not pay slot cost to Horizon for the Maersk Sealand containers affected including without limitation, for the additional ***
FEUs/week referred to in Article 5.2.1. 

  

	6.4	Subcharters.  

  
 It is agreed that Maersk Sealand shall not subcharter space hereunder to any other ocean common carrier without the prior written consent of Horizon.

  

	***	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 406 of
the Securities Act. 

  
 9 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

	6.5	Separate Identities. 

  
 Each Party shall retain its own separate identity and shall have separate sales, pricing and marketing functions. Maersk Sealand shall issue its own bills
of lading. The Parties will not discuss rates charged to each Party’s respective customers. 
  

	6.6	Equipment Interchanges. 

  
 The Parties may discuss and agree on standards for, and may interchange, purchase, pool, lease, sublease or otherwise co-operate in connection with
containers, chassis and other equipment as among themselves, on such terms as they may agree from time to time. Such co-operation to be agreed upon in a separate Equipment Interchange Agreement attached hereto as Appendix 3. 
  

	6.7	Container Services. 

  
 Horizon shall insure that its vessel personnel will, in accordance with instructions to be communicated from time to time by Maersk Sealand to Horizon,
during voyages when Horizon transports containers on behalf of Maersk Sealand pursuant to the terms of this Agreement, maintain and repair such containers (and in particular for refrigerated containers, also monitor, and if so requested by Maersk
Sealand, record temperature on such refrigerated containers). Except as may otherwise be specifically agreed between Maersk Sealand and Horizon, Maersk Sealand will reimburse Horizon for actual, documented expenses incurred as a direct result of the
performance of such maintenance and/or repair which reimbursements shall be made within the time agreed by Maersk Sealand and Horizon following completion of each voyage. 
  

	6.8	Administrative Matters 

  
 Procedures for booking vessel container space, documentation, special cargo handling instructions or requirements, and other administrative matters
relating to chartering and transportation provided under this Agreement shall be as the Parties may from time to time agree in writing. 
  

	6.9	Origin and Destination of Cargo 

  
 Maersk Sealand may not use space chartered hereunder or tender cargo for carriage which either Party is not permitted to transport under applicable law or
regulations. 
  
 Article 7: 
Liabilities and Indemnities. 
  

	7.1.	 The carriage, custody and care of goods hereunder shall be subject to the Hague Rules, 1924, as enacted in and interpreted under the United States Carriage of Goods
by Sea Act, 1936 (“COGSA”), as amended from time to time. However, 

  

 10 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

	 	 
only insofar as it may provide greater rights to Maersk Sealand, the provisions of the International Convention for the Unification of Certain Rules of Law
Relating to Bills of Lading signed at Brussels, August 25, 1924 as amended by the “Protocol” signed at Brussels, February 23, 1968 (VISBY RULES) and at Brussels, December 21, 1979 (S.D.R. Protocol) shall apply to goods whether carried on
or under deck, to carriage of goods between U.S. ports, between non-U.S. ports and between U.S. and non-U.S. ports before the goods are loaded on and after they are discharged from the vessel and throughout the entire time the goods are in the
custody, care and/or control of Horizon, whether acting as carrier or bailee. 

  
 For the purposes of determining any limitations of liability available the descriptions, weights, numbers/packages and customary freight units indicated
in the Maersk Sealand Bill of Lading issued to its customers shall be deemed conclusive and binding as between Maersk Sealand and Horizon. 
  

	7.2.	As between the parties, Horizon shall have the same rights, defenses, limitations, and exoneration as Maersk Sealand has to or against its shippers in relation to goods transported
under this Agreement, but Horizon shall also be bound by the determination of a competent court as to the validity of such rights, defenses, limitations and exoneration in any action between the shipper or other cargo claimant and Maersk Sealand.
However, the liability of Horizon (with the exception of costs and attorney fees whether incurred by Maersk Sealand or Horizon) shall in no instance exceed (except as provided 7.4 below) the liability of Maersk Sealand to its shippers.

  

	7.3.	Notwithstanding any other provision of this Agreement, Horizon shall not be liable for, and shall be indemnified and held harmless by Maersk Sealand against, any loss or damage
whatsoever resulting from or arising out of the incorrect issuance, completion or endorsement of bill(s) of lading by Maersk Sealand or its agent. 

  

	7.4.	The liability of Horizon for any loss or damage to containers tendered to Horizon by Maersk Sealand hereunder shall be the reasonable costs of repair or the value (replacement cost
less depreciation) of the container at the time of such loss or damage, whichever is lesser, without reference to any limitation of liability. Horizon shall not in any event be liable for any damage to a container which does not exceed USD*** on any
voyage. 

  

	7.5.	Maersk Sealand shall indemnify Horizon against any expenses, legal liabilities, loss, damage, claims or demands (and all reasonable expenses connected therewith, including
reasonable attorney’s fees, costs and expenses) which Horizon may incur or suffer by reason of any failure by Maersk Sealand to comply with any relevant laws, regulations, directions, or notices of customs, port and any other authorities, or by
reason of any infestation, contamination, or condemnation of goods or container, insofar as such failure, infestation, contamination or condemnation arises from any act, neglect or default of Maersk 

  

	***	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 406 of
the Securities Act. 

  
 11 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Sealand or of the consignors or consignees of any goods or containers transported under this
Agreement, their servants or agents. 
  
 Horizon shall indemnify
Maersk Sealand against any expenses, legal liabilities, loss, damage, claims or demands (and all reasonable expenses connected therewith, including reasonable attorney’s fees, costs and expenses) which Maersk Sealand may incur or suffer by
reason of any failure by Horizon to comply with any relevant laws, regulations, directions, or notices of customs, port and any other authorities, or by reason of any infestation, contamination, or condemnation of goods or container, insofar as such
failure, infestation, contamination or condemnation arises from any act, neglect or default of Horizon or of its consignors or its consignees, their servants or agents. 
  

	7.6.	Nothing in this Article or contained elsewhere in this Agreement is intended to be, or shall be construed to be, a waiver by either party of its right to limit liability under any
applicable convention, treaty, statute or law in respect of fire, collision or otherwise. 

  

	7.7.	If requested by Maersk Sealand, Horizon undertakes to make available to Maersk Sealand such documents of any form which Maersk Sealand may reasonably require for the handling of or
in connection with any claims, actions, or suits by or against Maersk Sealand. This would include protests, receipts, interchanges, survey reports, statements of facts, bay plans, log books and manuals. 

  

	7.8.	Maersk Sealand shall be entitled to handle and settle claims for loss of, damage to, misdelivery of or delay in delivery of cargo filed under and pursuant to its Bill of Lading or
other contract of carriage, and shall further be entitled to grant such reasonable time extensions as Maersk Sealand deems necessary. Such handling and/or granting of time extensions shall not in any way prejudice Maersk Sealand’s rights of
recovery as against Horizon hereunder. 

  

	7.9.	Notwithstanding anything herein or in the Parties’ Bills of Lading to the contrary, any claim or action for indemnity by Maersk Sealand against Horizon hereunder shall be
subject to 12 months’ time bar counting from the time that Maersk Sealand has paid any settlement or from the date of any final judgement rendered by a competent court or unappealable award by arbitrators against Maersk Sealand.

  
 Article 8: 
Insurance 
  
 Horizon shall assure that there is maintained in effect, as
to its vessels, hull, P & I, war risk and financial responsibility for oil pollution insurance and provide the other Party with satisfactory evidence of such insurance within thirty (30) days after the effective date of this Agreement. Horizon
further agrees to provide Maersk Sealand with written notice prior to any cancellation, non-renewal, or modification of such insurance. 
  

 12 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Article 9:  Duration and Termination. 
  

	9.1.	The effective date of this Agreement shall be December 11, 2004. The term or this Agreement shall commence on its effective date and shall terminate on December 10, 2007 unless-: 

  

	 	(a)	extended pursuant to Article 9.2. 

  

	 	(b)	early terminated by the unanimous agreement of the Parties, 

  

	 	(c)	early terminated upon written notice with immediate effect for material default of one of the Parties which remains uncured for a period of thirty (30) days after written notice
thereof has been received by the defaulting Party. 

  

	 	(d)	early terminated by one party of the other party files a petition in bankruptcy reorganization, liquidation or similar proceedings or if the other party shall be adjudged bankrupt
or insolvent or in a similar state by the court. 

  

	 	(e)	early terminated by Maersk Sealand pursuant to Clause 6.1, Reliability Commitment, where termination of the TP1 Service shall constitute a termination of this Agreement, whereas a
termination by Maersk Sealand of the Asia – North America tradelane pursuant to Clause 5.1.3, Hong Kong / Kaohsiung, shall not affect the remainder of this Agreement. 

  

	 	(f)	early terminated by Maersk Sealand in its sole discretion in the event that APM Terminals North America, Inc. (“APMT”), affiliate to Maersk Sealand, exercises any
post-default remedy available to it pursuant to Section 16 of the Stevedoring and Terminal Services Agreement dated the same date as this Agreement between APMT and Horizon relating to US terminals. 

  

	9.1.1 	In the event that Maersk Sealand can exercise any early termination right pursuant to Article 9.1.(c), (d), (e) or (f) above, Maersk Sealand may also exercise the following remedy
in addition to any other remedy permitted under this Agreement or at law, equity or otherwise: In the event that Horizon fails to pay Maersk Sealand (or any of Maersk Sealand’s affiliates) within the payment terms required by any other
agreement between Horizon and Maersk Sealand (or any of Maersk Sealand’s affiliates) that requires payment from Horizon, Maersk Sealand shall be entitled to offset such payment deficiency by reducing any amount owed by Horizon under this
Agreement by the amount of such payment deficiency. 

  

	9.2	The Parties may mutually agree to extend the term of this Agreement for up to two one-year renewal periods or one two-year renewal period. Either Party may request that the other
Party enter into discussions to renew this Agreement not later than thirteen (13) months prior to the expiration date of this Agreement then in effect. The other Party shall respond whether or not it is willing to enter into such discussions no
later than thirty (30) days after it has received such request. 

  

 13 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

	9.3	Any unsettled matters, disputes, claims, actions, monies due or other obligations owed or due to each other hereunder shall survive any termination of this Agreement.

  
 Any voyage of a vessel on which space is
chartered to Maersk Sealand, or on which cargo is transported for Maersk Sealand by Horizon, which has commenced but has not been completed prior to the effective date of the termination of this Agreement shall be subject to the terms of this
Agreement in its entirety. 
  
 Article
10:  Force Majeure. 
  
 Each Party shall be excused from the
performance of any obligation imposed upon it under this Agreement, if and insofar and for as long as such performance is delayed or prevented by circumstances beyond its reasonable control including, but not limited to strike, lock-out or labour
disputes, other work stoppages, fire, typhoon, hurricane, flood, explosion, natural catastrophe, act of God, military operations, blockade, sabotage, revolution, civil commotion, hostilities, war or civil war, governmental regulations or controls,
participation in the U.S. Department of Defense Emergency Preparedness Program or other U.S. military national security agreements, or any similar event. 
  
 The Party concerned shall use all reasonable efforts to avoid or minimize the consequences of such failure to perform and shall continue to fulfil its obligations as far
as possible after the cause of such failure has ceased to exist. In particular, the Party failing to perform any of its obligations shall immediately inform the other Party indicating the cause and expected duration of such failure and the delay
which it will cause, and shall continue to keep the other Party informed of the situation. 
  
 Article 11:  Governing Law and Arbitration. 
  
 Any controversy or claim arising out of or relating to this Agreement, or the arbitrability of such controversy or claim, or the breach,
termination or validity of this Agreement, shall be settled by arbitration in accordance with the Rules of the Society of Maritime Arbitrators, Inc. (the “SMA”). Unless the parties agree upon a sole arbitrator, one arbitrator shall be
appointed by each party. The arbitrators so appointed shall appoint a third arbitrator, and the three arbitrators shall constitute the arbitration tribunal. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. sections
1-16, and judgement upon the award rendered by the tribunal may be entered by any court having jurisdiction thereof. The place of arbitration shall be New York City unless mutually agreed upon elsewhere by Horizon and Maersk Sealand. This Agreement
and any arbitration under this Article shall be governed by the laws of the State of New York with the exception of the rules of conflict of laws thereof, and except as governed by the federal maritime law of the United States. 
  
 Article 12:  Change of Horizon ownership.

  
 This Agreement shall survive a change in control of the ownership of Horizon
or of the change in ownership of Horizon’s vessels and assets engaged in the Trade, and 

  

 14 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 
MaerskSealand shall have the right to terminate this Agreement if such change in control in any way affects the performance of Horizon or its successor(s)
under this Agreement. Horizon shall not engage in a change of control or disposition of vessels or assets that would affect the performance of Horizon or its successor(s) or assigns hereunder. 
  
 Article 13:  Non-Assignment. 

 
 No Party may assign all or part of its rights and obligations under this Agreement
without the prior written consent of the other Party. Should that consent be given it shall not affect any existing responsibilities and obligations under this Agreement, unless otherwise agreed. 
  
 Article 14:  Severability. 
  
 Should any term or provision in this Agreement be held invalid, illegal or unenforceable,
the remainder of this Agreement, and the application of such term or provision to persons or circumstances other than those as to which it is invalid, illegal or unenforceable, shall not be affected thereby; and each term or provision of this
Agreement shall be valid and enforceable to the full extent permitted by law. 
  
 Article 15:  Notices. 
  
 For
communication of all notices required pursuant to this Agreement, other than notice of termination which shall be sent by registered mail to the Parties, such other notices and communications shall be sent by first-class air mail (confirmed by
telefax), by courier service, by E-mail or by telefax to the following: 
  

			
	 To:
	  	 Maersk Sealand
 50, Esplanaden
 1098 Copenhagen
 Denmark
 Att:       Line Department
 Fax :
    +45 33 63 46 66
 E-mail: cenlintop@Maersk.com

		
	 To:
	  	 Horizon Lines, LLC
 4064 Colony Road, Suite
200
 Charlotte, North Carolina 28211
 USA
 Att:      President
 Fax:
    +1 (704) 973 7010

  
 Any notice hereunder shall be
effective only upon receipt.  
  

 15 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Article 16:  Consequential Damages. 
  
 Neither party shall be liable for indirect or consequential damages, including lost profits
of any kind in connection with the transactions contemplated herein, whether arising in contract, tort or otherwise. 
  
 Article 17:  Proprietary Information 
  
 Horizon agrees not to make use of any shipping, commercial, financial or other data relating to the operations of Maersk Sealand or cargo
handled by Horizon for Maersk Sealand under this Agreement except as necessary to carry out Horizon’s obligations under this Agreement or as may be otherwise required by law. Maersk Sealand and Horizon further agree not to make use of or
disclose to third persons (not including affiliates of either party) the terms of this Agreement and/or the rates, or calculation of rates, in conjunction with this Agreement without the prior written consent of the other party, except where such
information is required to be disclosed by law. 
  
 Article 18:  Entire Agreement 
  
 This Agreement and
its Appendices shall (a) contain the entire Agreement and understanding of the parties with respect to the subject matter and (b) supersede all prior negotiations, discussions, correspondence, communications, understandings and agreements between
the parties relating to the subject matter thereof, all of which are merged into this Agreement. For the avoidance of doubt, that TP1 Space Charter and Transportation Agreement dated December 10, 1999 between the parties hereto shall terminate on
the Effective Date referred to in Article 9.1 and that Memorandum of Understanding dated March 22, 2004, between Horizon and Maersk Inc.is hereby terminated and replaced by this Agreement on the date hereof. 
  

 16 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Signature Page 
  
 WHEREAS, the Parties have executed this Agreement on the 9th day of May, 2004. 
  

									
	Horizon Lines, LLC	 	 	 	A.P. MØLLER as managing owner for and on behalf of A.P. Møller-Maersk A/S
					
	 By:
	 	 /s/ Robert S. Zuckerman
	 	 	 	 By:
	 	 
					
	 Name:
	 	 Robert S. Zuckerman
	 	 	 	 Name:
	 	 
					
	 Title:
	 	 Vice President
	 	 	 	 Title:
	 	 

  

 17 

 TP1 Space Charter and Transportation Service Contract 
  

 Signature Page 
  
 May         , 2004 
  

									
	HORIZON LINES, LLC	 	 	 	A.P. MØLLER as managing owner for and on behalf of A.P. Møller-Maersk A/S
					
	 By:
	 	 	 	 	 	 By:
	 	 /s/ Peter Frederiksen

					
	 Name:
	 	 	 	 	 	 Name:
	 	 Peter Frederiksen

					
	 Title:
	 	 	 	 	 	 Title:
	 	 Sr. Vice President

  

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Appendix 1-A 
  
 Slot Rates for Jones Act Corridors in US Dollars 
  

			
	 North America to Hawaii (International cargo)
	  	***
	 TP1 Vessel Service (per FEU)
 CHX Vessel Service
	  	***
	 20’
	  	***
	 40’
	  	***
	 45’
	  	***
	 RFR
	  	***
	 North America to Hawaii Neighbour Islands (20’, 40’ Int’l cargo)
	  	***
	 North America to Hawaii Neighbour Islands (45’ Int’l cargo)
	  	***
		
	 CHX vessel Service:
	  	 
	 Hawaii to North America (Int’l cargo or empty)
	  	 
	 20’
	  	***
	 40’
	  	***
	 45’
	  	***
	 RFR
	  	***
		
	 Hawaii Neighbour Islands to North America (Int’l cargo or empty)
	  	 
	 20’
	  	***
	 40’
	  	***
	 45’
	  	***
	 RFR
	  	***
		
	 Hawaii to Asia (waste paper – int’l)
	  	***
	 Hawaii to Asia (all other int’l)
	  	***
	 Hawaii Neighbour Islands to Asia (Int’l)
	  	***
		
	 North America to Guam/Asia (Int’l cargo)
	  	***
	 North American to Saipan (Int’l cargo)
	  	***
	 20’
	  	***
	 40’
	  	***
	 45’
	  	***
	 RFR
	  	***
		
	 Saipan to North America (Int’l cargo)
	  	***
	 20’
	  	***
	 40’
	  	***
	 45’
	  	***
	 RFR
	  	***
	 	  	***
	 Guam to Asia (Int’l cargo)
	  	***
	 (for FEU over the *** weekly *** FEU provided for in article 5.1.2)
	  	***

  

					
	
 ***  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 406 of the Securities Act.
  

	 	 	18	 	 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

  

			
	 Saipan to Asia (Int’l cargo)
	  	***
	 North America to Alaska (Int’l cargo)
	  	 
	 Dry (ANC, KDK, DUT)
	  	***
	 Dry (Akutan)
	  	***
	 Reefer
	  	***
		
	 North America to Puerto Rico (or Dominican Republic if applicable) – Int’l cargo per FEU
	  	 
		
	 From Elizabeth, NJ
	  	***
	 From Jacksonville, FL
	  	***
	 From Houston, TX
	  	***
		
	 Hong Kong/Kaojsiung to North America
	  	 
	 TP1 Vessel Service (up to and including *** FEU)
	  	***
	 TP1 Vessel Service (above *** FEU)
	  	***

  

	*	Domestic cargo in all Jones Act Corridors is subject to move at tariff rates. 

  

Reefer Allocation 
  
 Maersk Sealand shall have an allocation of up to *** reefer plugs per vessel under any westbound voyage under this Agreement. 
  
 In case Maersk Sealand wishes to purchase additional reefer plugs, this can be done subject
to such plugs being available, at a slot rate as mutually agreed. 
  

					
	
 ***   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 406 of the Securities Act.
  

	 	 	19	 	 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Appendix 1-B 
  

Declared Volumes for Jones Act Corridors 
  

					
	 	  	Nos. FEU

	  	Average weight

	 North America to Hawaii/Guam
	  	 	  	 
			
	 - TP1 Vessel Service
	  	*** FEU
(According to Article 5.2.1)	  	***/FEU
			
	 Hawaii to Asia
	  	*** FEU	  	 
			
	 Guam to Asia
	  	*** FEU	  	 
			
	 North America to Alaska*
	  	*** FEU	  	 
			
	 North America to Puerto Rico (or Dominican Republic*, if applicable)
	  	 	  	 
			
	 From Elizabeth, NJ*
	  	*** FEU	  	 
			
	 From Jacksonville, FL*
	  	*** FEU	  	 
			
	 From Houston, TX*
	  	*** FEU	  	 
			
	 From Freeport, Bahamas (Puerto Rico only)*
	  	*** FEU	  	 
			
	 Hong Kong / Kaohsiung to North America
	  	 	  	 
			
	 - TP1 Vessel Service
	  	*** FEU	  	***/FEU
			
	 Puerto Rico to Dominican Republic
	  	*** FEU	  	 

	*	Volumes cover full round trip basis 

	***	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 406 of
the Securities Act. 

  

 20 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Appendix 2 
  
 TP1 Service 
 Vessel Service Proforma
Note: Both parties agree to review the schedule after the 
 TP1 moves to Modern Terminal 
  

											
	 	  	 ARRIVAL AT DOCK

	  	 UNDOCKING TIME

	  	DAYS FROM
TACOMA

	 PORT

	  	 DAY

	  	 HOUR

	  	 DAY

	  	 HOUR

	  
	 Tacoma
	  	 	  	 	  	SUN	  	08:00	  	0
	 Oakland
	  	TUE	  	08:00	  	WED	  	18:00	  	2
	 Honolulu
	  	SUN	  	23:59	  	TUE	  	03:00	  	7
	 Guam
	  	TUE	  	16:00	  	WED	  	04:00	  	16
	 Hong Kong
	  	SAT	  	21:00	  	SUN	  	08:00	  	20
	 Kaohsiung
	  	MON	  	05:00	  	MON	  	18:00	  	22
	 Tacoma
	  	FRI	  	18:00	  	 	  	 	  	33

  
 Note
1: The above schedule is based on a roundtrip time of 35 days and a frequency of 7 days. 
  

 21 

 TP1 Agreement Maersk Sealand / Horizon Lines LLC 
  

 Appendix 3 
  
 Equipment Interchange Agreement 
  
 Equipment Interchange Agreement will be finalized on a separate basis, and once finalized incorporated in this Agreement. 
  

 22 

 Appendix 3 
  

EXECUTION COPY 
  
 TP1 INTERCHANGE AGREEMENT 
  
 The following is agreed as of 10th December, 1999 between: 
  
 A.P. Møller 
  
 as managing owners to Aktieselskabet Dampskibsselskabet Svendborg and Dampskibsselskabet af 1912, Aktieselskab, hereinafter called “Maersk” and 
  
 CSX Lines LLC 
  
 hereinafter called, “CSX Lines”. 
  

	1.	DEFINITIONS 

  

	 	a.	“Container” means a Container identified as per ISO 6346, manufactured in compliance with ISO, CSC, Customs Convention and the rules of any applicable classification
society as the case may be. 

  

	 	b.	“ TIR” means Trailer Interchange Receipt 

  

	 	c.	“UCIRC” means Unified Container Inspection and Repair Criteria. 

  

	2.	SCOPE OF THE AGREEMENT 

  

	 	a.	This Agreement shall govern the sublease of Containers from Maersk to CSX Lines as provided for in “Sea-Land Domestic Shipping LLC Space Charter and Transportation Service
Contract”, paragraph 5A.4, between A.P. Møller-Maersk Sealand and Sea-Land Domestic Shipping LLC. 

  

	 	b.	The Agreement covers the following Container types: 

  
 20-foot standard 
 40-foot standard

 40-foot high cube 
 45-foot
high cube 
  
 Maersk may agree to sublease other Container types
and/or at other locations at its discretion, with rates and possible specific conditions mutually agreed in writing. 
  

	 	c.	Maersk will sublease Containers to CSX Lines and CSX Lines will accept on lease from Maersk Containers at locations and in quantities set forth in Exhibit A.

  

	 	d.	This Agreement is based on good faith and mutual co-operation between the parties, Maersk and CSX lines. 

  

	3.	PERIOD OF AGREEMENT 

  

	 	a.	This Agreement shall be effective on 13th December, 1999 or on the effective date of “Sea-Land Domestic Shipping LLC Space charter and Transportation Service Contract”,
whichever is later, and shall remain in effect concurrently with “Sea-Land Domestic Shipping LLC Space Charter and Transportation Service Contract”. 

  

	 	b.	Amendments to this Agreement shall apply only as mutually agreed to in writing by Maersk and CSX Lines. 

  

	 	c.	Following termination of this Agreement, CSX Lines shall return all Containers to Maersk within a period of three (3) months. The terms of this Agreement remain in effect until all
Containers have been returned to Maersk. 

  

	4.	MAERSK’S RESPONSIBILITIES 

  

	 	a.	Maersk shall offer Containers for sublease provided they comply with paragraph 1.a. 

  

	 	b.	Maersk shall be responsible for providing Containers in a safe and cargo-worthy condition, in accordance with the UCIRC standards and having a CSC plate valid for at least 180 days.

  

	5.	CSX LINES’S RESPONSIBILITIES 

  

	 	a.	Upon receipt CSX Lines shall assume any and all responsibility arising from its possession or utilization for the Container and indemnify Maersk, including its agents, from any and
all liability resulting from the operation of the Container by CSX lines until return to Maersk. 

  

	 	b.	CSX Lines shall maintain insurance coverage and/or P & I Club cover for any risk of personal injury or damage to cargo or other property arising from the possession or
utilization of the Containers. 

  

	 	c.	CSX Lines shall use Containers only for transport of lawful cargo. Containers will not be used to handle cargoes that have the potential to permanently damage the use, such as wet
salted hides, carbon black, asbestos, etc. 

  

 2 

	 	d.	CSX Lines is responsible for cleaning the Containers prior to redelivery or for the costs of cleaning. 

  

	 	e.	CSX Lines shall inform Maersk promptly when a Container is destroyed or lost. 

  

	 	f.	CSX Lines is responsible for any damage to the Container(s) (or total loss) even if incurred through an event of Force Majeure including but not limited to Act of God, unless damage
is caused by a breach by Maersk of its obligations hereunder or by its negligence or wilful misconduct. 

  

	 	g.	If a Container is damaged and/or requires cleaning and if the total cost of same including repair handling charges exceeds USD *** per Container, CSX Lines shall be responsible for
paying the total amount without deductions. Amounts of USD *** or less per Container shall be paid by Maersk. For assessment of damage, UCIRC shall apply. The maximum cost of repair shall not exceed the respective depreciated value (DV). Any
transportation and/or handling costs incurred in moving the Container to the nearest repair facility are for CSX Lines’s account. Maersk shall notify CSX Lines if repairs in excess of USD *** are required for a returned Container. CSX Lines
shall be allowed first option to repair Container prior to Maersk effecting repair and billing CSX Lines, such option to be declared within 3 working days of receipt of the repair estimate. If this option is not selected by CSX Lines, Maersk shall
repair the Container and CSX Lines shall be responsible for all reasonable documented repair costs. 

  

	 	h.	In the event that repairs are performed by CSX Lines, CSX Lines shall abide by repair standards as per the UCIRC, and material must be of similar quality and type as material
removed. Repairs, when complete, are subject to acceptance by Maersk, such acceptance not to be unreasonably withheld, 

  

	 	i.	Transport costs, gate charges and other costs for transport subsequent to lease-out are for CSX Lines’s account. 

  

	6.	DELIVERY 

  

	 	a.	Maersk shall make Containers available for pick-up by CSX Lines as set forth in Exhibit A. Any request from CSX lines for other Container types, quantities and/or locations shall be
submitted in writing at least three (3) days prior to requested pick-up date. 

  
 Pick-up of Container(s) must take place reasonably distributed throughout the week and Maersk shall not be obligated to release more than one third (1/3) of the weekly committed quantity in any one day, unless
mutually agreed in writing. 
  

	***	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 406 of
the Securities Act. 

  
 3 

	 	b.	Containers shall be deemed on lease effective on the date that they exit the Maersk depot for a CSX Lines export booking or for empty positioning on behalf of CSX Lines. The TIR
issued by the terminal or depot in this respect shall be considered proof of lease by CSX Lines. 

  

	 	c.	CSX Lines is not obliged to accept Containers which are not in accordance with the specification as per 4.b. of this Agreement. 

  

	7.	REDELIVERY 

  

	 	a.	CSX Lines shall redeliver empty Containers to Maersk on the TP1 Service or its successor (as defined in “Sea-Land Domestic Shipping LLC Space Charter and Transportation Service
Contract”) and Maersk shall arrange discharge in Asia at its discretion. 

  

	 	b.	Redelivery of Containers outside Asia or directly by Sea-Land to a Maersk depot is subject to Maersk’s prior consent which shall not be unreasonably withheld. Failure on part
of the depot operator to reject such Containers shall not in any way be construed as implied consent by Maersk and any such redelivery shall be subject to a drop-off charge of $***. 

  

	8.	COMPENSATION  

  

	 	a.	Maersk is entitled to receive compensation for utilization of the Containers on a per diem basis from the day of pick-up, or the day of expiry of free days, until the day of
physical redelivery (or notification of loss). 

  

	 	b.	Free days are defined as 30 days, counting from the agreed date of delivery, as per 6.a. Neither reefer Containers nor Containers picked up and redelivered in the same location
shall have any free days. 

  

	 	c.	Unless otherwise agreed in writing, the per diem rates as specified in Exhibit C shall apply. 

  

	 	d.	Total losses shall be borne by CSX Lines. Total loss value for owned Containers are calculated by depreciating the replacement value stipulated in Exhibit C in a straight line down
to 30 percent over a 10.5 year period. For Containers owned by leasing companies or other entities their depreciated value as invoiced to Maersk shall be paid by CSX Lines. 

  

	 	e.	 In case of loss, the title to the Containers shall be transferred to CSX Lines at 

  

	*** 	Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for a confidential treatment in accordance with Rule 406 of
the Securities Act. 

  
 4 

	 	 
CSX Lines’ option. Such option shall be declared within 3 working days after loss declaration, failing which title shall be retained by Owner.

  

	9.	INVOICING AND PAYMENT 

  

	 	a.	Invoices for per diem costs, damage and, if applicable, any depreciated values are raised monthly for every calendar month. 

  

	 	b.	Payment shall be due within 30 days after receipt of invoice by CSX lines. 

  

	 	c.	Depreciated values and invoices for damage shall be settled on an individual basis. Payment is due within 30 days of invoice date. Per diem will be invoiced until date of invoice of
depreciated value for lost Container (such invoice to be void within 30 days as per the above). 

  

	 	d.	Unless otherwise agreed in writing, invoices shall be raised and paid in US Dollars. 

  

	 	e.	Invoices are to be sent to CSX Lines’s corporate address as listed in Exhibit B. 

  

	 	f.	Maersk represents that for the purpose of per diem billing the data reflected in RKEM is accurate. 

  

	10.	RECOVERY/CLAIMS 

  

	 	a.	Maersk has no obligation to, or liability for, making or obtaining recovery from third parties, which recovery is the obligation and responsibility of CSX Lines.

  

	 	b.	Maersk has no liability for cargo damage while Containers are under CSX Lines’s control, as between Maersk and CSX Lines, it is CSX Lines’s responsibility to ensure that
Containers are in safe and cargo-worthy condition before packing with cargo. 

  

	11.	MISCELLANEOUS 

  

	 	a.	Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 

  

	 	b.	 No Assignment. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and permitted assigns;

  

 5 

	 	 
provided, however, that neither this Agreement nor any right, interest or obligation hereunder may be assigned (by operation of law or
otherwise) (i) by CSX Lines without the prior written consent of Maersk or (ii) by Maersk (other than an assignment to an Affiliate thereof) without the prior written consent of CSX Lines. 

  

	 	c.	Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be delivered by facsimile transmission, messenger, nationally
recognized overnight courier service, prepaid or registered or certified mail (postage prepaid, return receipt requested) to the parties hereto at the following respective addresses or facsimile numbers: 

  

			
	 i.
	  	if to Maersk, to:
		
	 	  	 A.P. Møller
 50, Esplanaden
 DK-1098
 Copenhagen K. Denmark
 Attention: Center Equipment Management
 Telecopier:
011-45-3363-4563;

		
	 ii.
	  	if to CSX Lines, at the address and facsimile number set forth for Sea-Land in Section 12.2 of the Purchase Agreement.

  

	 	d.	Amendment; Waiver; Consent. This Agreement may be amended, modified or supplemented, and the terms hereof may be waived, in each case only by a written instrument executed by
the parties hereto. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent or other breach, whether or not similar. 

  

	 	e.	Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future Law, and if the rights or obligations of any
party hereto under this Agreement will not be materially and adversely affected thereby, (i) such provision will be fully severable, (ii) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never
comprised a part hereof, (iii) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (iv) in lieu of such illegal,
invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible. To the extent
permitted by applicable Law, the parties hereto hereby waive any provision of Law which may render any provision hereof illegal, invalid or unenforceable in any respect. 

  

 6 

	 	f.	Consent to Jurisdiction and Service of Process. FOR PURPOSES OF ENFORCING ANY ARBITRATION AWARD, AND FOR ANY OTHER PROPER PURPOSE ARISING OUT OF OR RELATING TO THIS
AGREEMENT, INCLUDING ENJOINING PROCEEDINGS COMMENCED IN VIOLATION OF SECTION 12.10(B) OF THE PURCHASE AGREEMENT, EACH OF THE PARTIES HERETO ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE
JURISDICTION OF THE FEDERAL AND STATE COURTS SITTING IN NEW YORK AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. EACH OF THE PARTIES HERETO
FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT THE ADDRESS SPECIFIED
IN THIS AGREEMENT, SUCH SERVICE TO BECOME EFFECTIVE 15 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL IN ANY WAY BE DEEMED TO LIMIT THE ABILITY OF ANY PARTY HERETO TO SERVE ANY SUCH LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW. 

  

	 	g.	Counterparts. This Agreement may “be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and
the same agreement, and all signatures need not appear on any one counterpart. 

  

	 	h.	Definitions. Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Amended and Restated Purchase Agreement dated as of July
21,1999 (as amended from time to time, the “Purchase Agreement”) by and among Maersk, CSX Corporation, a Virginia corporation, and Sea-Land Service, Inc., a Delaware corporation (“Sea-Land”).

  
 Signed: 
  

					
	 A.P. Møller as managing owners to
 Aktieselskabet Dampskibsselskabet
 Svendborg and Dampskibsselskabet
 af 1912, Aktieselskab
	 	 	 	 CSX Lines LLC

  

					
	 Name:
	 	 	 	 Name:
  

	 Title:
	 	 	 	 Title:

  

 7 

  
 EXHIBIT A 

 
 Agreement between A.P. Møller as managing owners to Aktieselskabet
Dampskibsselskabet Svendborg and Dampskibsselskabet of 1912, Aktieselskab (Maersk) and CSX Lines LLC (CSX Lines). 
  
 Maersk shall make an average of *** FFE (forty-foot equivalent units) per week available for pick-up by CSX Lines. Maersk commits to meeting no less than *** of this
quantity, equal to *** FFE) and will on a best effort basis try to make up to *** FFE available in any given week. CSX Lines shall take on lease no less than *** FFE during each calendar quarter  
  
 Lease locations and quantities, rounded average per week, are as follows: 
  

											
	 Location

	  	20’ dry

	  	40’ dry

	  	40’ highcube

	  	45’ highcube

	  	 
	 Atlanta
	  	***	  	***	  	***	  	***	  	***
	 Baltimore
	  	***	  	***	  	***	  	***	  	***
	 Charleston
	  	***	  	***	  	***	  	***	  	 
	 Charlotte
	  	***	  	***	  	***	  	***	  	***
	 Chicago
	  	***	  	***	  	***	  	***	  	 
	 Columbus
	  	***	  	***	  	***	  	***	  	 
	 Denver
	  	***	  	***	  	***	  	***	  	***
	 Detroit
	  	***	  	***	  	***	  	***	  	***
	 El Paso
	  	***	  	***	  	***	  	***	  	***
	 Elizabeth
	  	***	  	***	  	***	  	***	  	 
	 Halifax
	  	***	  	***	  	***	  	***	  	***
	 Houston
	  	***	  	***	  	***	  	***	  	 
	 Indianapolis
	  	***	  	***	  	***	  	***	  	***
	 Jacksonville
	  	***	  	***	  	***	  	***	  	 
	 Kansas City MO
	  	***	  	***	  	***	  	***	  	***
	 Long Beach
	  	***	  	***	  	***	  	***	  	 
	 Memphis
	  	***	  	***	  	***	  	***	  	***

	***	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 406 of
the Securities Act. 

  

 8 

											
	 Location

	  	20’ dry

	  	40’ dry

	  	40’ highcube

	  	45’ highcube

	  	 
	 Miami
	  	***	  	***	  	***	  	***	  	 
	 Minneapolis
	  	***	  	***	  	***	  	***	  	***
	 Montreal
	  	***	  	***	  	***	  	***	  	***
	 Nashville
	  	***	  	***	  	***	  	***	  	***
	 New Orleans
	  	***	  	***	  	***	  	***	  	 
	 Norfolk
	  	***	  	***	  	***	  	***	  	 
	 Oakland
	  	***	  	***	  	***	  	***	  	 
	 Omaha
	  	***	  	***	  	***	  	***	  	***
	 Salt Lake City
	  	***	  	***	  	***	  	***	  	***
	 St. Louis
	  	***	  	***	  	***	  	***	  	***
	 Tacoma
	  	***	  	***	  	***	  	***	  	 
	 Toronto
	  	***	  	***	  	***	  	***	  	***
	 Total Units
	  	***	  	***	  	***	  	***	  	 

  
 Locations marked *** are subject to
prior notice from CSX Lines no less than 7 calendar days before intended pick-up. 

	***	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 406 of
the Securities Act. 

  

 9 

 EXHIBIT B 
  

To TP1 Interchange Agreement between A.P. Møller as managing owners to Aktieselskabet Dampskibsselskabet Svendborg and Dampskibsselskabet af 1912, Aktieselskab
(Maersk) and CSX Lines LLC (CSX Lines). 
  
 Contact Addresses/Names - Maersk 
  

							
	 Corporate:
	  	A.P. Møller	  	 	  	 
	 	  	Line Department - Equipment Management
	 	  	Fax:	  	+4533 63 45 63	  	 
	 	  	Phone:	  	+45 33 63 47 49	  	(Lars W. Lorenzen)
	 North America &
	  	Maersk Inc.	  	 	  	 
	 Central America,
	  	Line Management	  	 	  	 
	 Incl. Caribbean
	  	Fax:	  	+1-973-514-5455	  	 
	 	  	Phone:	  	+1-973-514-5272	  	(Lars D. Knudsen)
	
	 Contact Addresses/Names - CSX Lines

				
	 Corporate:
	  	CSX Lines, LLC	  	 	  	 
	 	  	Fax:	  	+1-972-702-2691	  	 
	 	  	Phone:	  	+1-972-726-1008	  	(Gunther Hoock)

  

 10 

 AGREEMENT REGARDING THE 
 TP1 INTERCHANGE AGREEMENT 
  
 THIS AGREEMENT dated                     , 2004 is made between A.P. Møller – Maersk A/S
(successor in interest to Aktieselskabet Dampskibsselskabet Svendborg and Dampskibsselskabet af 1912, Aktieselskab) (trading as Maersk Sealand) and Horizon Lines, LLC (“HL”). 
  

	 	A.	The parties confirm that the TP1 Interchange Agreement dated December 13, 1999 shall remain in full force and effect under existing terms and conditions, including all amendments,
addenda and side letters, upon the execution, of the 2004 TP1 Space Charter and Transportation Service Contract dated the same date as this Agreement above (the “2004 TP1 Agreement”). 

  
 This TP1 Interchange Agreement, including all amendments, addenda and side letters are
attached hereto. 
  

	 	B.	The parties acknowledge that HL is the successor in interest to CSX Lines, LLC. HL’s new address for notices is Horizon Lines, LLC, Attention: CFO, 4064 Colony Road, Suite 200,
Charlotte NC 28211 

  

	 	C.	The parties agree that the TP1 Interchange Agreement is hereby amended so that such agreement shall remain in effect concurrently with the 2004 TP1 Agreement and shall terminate on
the same date the 2004 TP1 Agreement terminates. 

  

	 	D.	This Agreement shall be governed by the laws of the State of New York without regard to principles of conflicts of laws. 

  

	 	E.	That any references in the Exhibits to “Long Beach” shall be modified to be “Los Angeles”. 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the day first written above. 
  
  

			
	A.P. MØLLER – MAERSK A/S
		
	By:	 	 /s/ Peter Prederiksen

	 	 	 Name: Peter Prederiksen

	 	 	 Title: Sr. Vice President

	
	HORIZON LINES, LLC
		
	By:	 	 /s/ Robert S. Zuckerman

	 	 	 Name: Robert S. Zuckerman

	 	 	 Title: Vice PresidentExhibit 10.1

Exhibit 10.1 

Dendrite
International, Inc. New Hire Option Grant Authorization 

                    As
a technology and services company, stock option grants may constitute an essential
inducement for individuals not previously employed by the Company (“new hires”)
to accept employment with the Company. 

                    Pursuant
to and in accordance with the requirements of NASDAQ Rule 4350(i) (or any subsequent
successor NASDAQ rule permitting such new hire grants without shareholder approval), new
hires may be granted non-qualified stock options under the new hire stock option
authorization by the Company’s Board of Directors. The option exercise price will be
the fair market value of the Company’s common stock on the date of the grant. The
other terms and conditions of such new hire options shall generally be the same as for
non-qualified stock options granted under the Dendrite International, Inc. 1997 Stock
Incentive Plan (the “Incentive Plan”) (or any successor to such plan), except as
otherwise approved by the Board of Directors and shall otherwise comply with current or
future NASDAQ rules regarding shareholder approval including, if necessary, approval by a
compensation committee consisting solely of independent directors or approval by a
majority of the Company’s independent directors. 

                    The
options are not subject to the Employee Retirement Income Security Act of 1974, as
amended. 

                    The
Board of Directors is authorized to issue options for up to an aggregate of 1,500,000
shares of common stock (inclusive of the options previously approved by the Board) under
this new hire authorization, as such number of shares may be adjusted for anti-dilution
events in the same manner as under the Incentive Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]