Document:

exv10w1

 

EXHIBIT 10.1

March 12, 2008

Michael P. Ryan

c/o American Commercial Lines Inc.

1701 E. Market Street

Jeffersonville, Indiana 47130

Dear Mr. Ryan:

          This will confirm our offer of employment as President and Chief Executive Officer of American
Commercial Lines Inc. (“ACL”). The following are the terms and conditions of your employment as
President and Chief Executive Officer:

          Title. President and Chief Executive Officer of ACL, based in Jeffersonville, Indiana.

          Responsibilities. The duties and obligations reasonably associated with the position
of President and Chief Executive Officer as shall be specified and designated from time to time by
the Board of Directors.

          Base Annual Salary. At such time as you officially assume the position of President
and Chief Executive Officer, your annual base salary will increase to $425,000 subject to annual
increases, if any, at the discretion of the Compensation Committee of the Board of Directors (the
“Committee”).

          Annual Bonus. You will be eligible to receive an annual target bonus beginning 2009 of
75% of your base annual salary based on achievement of ACL performance targets established by the
Committee.

 

 

          Equity. ACL hereby grants to you options to purchase 62,352 shares of ACL’s common
stock with an exercise price equal to today’s closing price of ACL’s common stock ($17.82) and
options to purchase 70,146 shares of ACL’s common stock with an exercise price equal to $22.25 per
share. Such options will become 100% vested and exercisable on the third anniversary of the date
hereof, with no incremental vesting prior to such date, and will also become 100% vested and
exercisable upon a “change of control” of ACL. In all other respects, the options will be subject
to the terms and conditions set forth in the form of stock option award agreement attached hereto
as Appendix B. You will be eligible to receive future equity grants at the discretion of the
Committee.

.1
Reimbursement of Legal Fees. ACL shall reimburse you for up to $5,000 of the fees and
expenses of your counsel in connection with the preparation, execution and delivery of this letter
agreement.

          Vacation. Four weeks per annum.

.A Severance. ACL will provide (12) twelve months severance, paid semi-monthly less
applicable federal and state withholdings, if your employment is involuntarily terminated without
cause or if you terminate for your employment for “good reason”. No severance pay will be granted
for separations that are the result of voluntary termination, discharge for performance, death,
retirement or permanent disability. The Annual Bonus will be prorated and paid in one lump sum,
not to exceed 100% of payout, in the year of termination (based on company performance achievement
at that time) if termination is without cause. All payments provided to you under this section are
contingent on your executing, and not revoking, ACL’s form of general release and waiver,
substantially in the form of Appendix C attached hereto, within 30 days of the date of your
termination of employment. Your first payment of severance following the expiration of the
revocation period will be cumulative of all severance payments you would have received following your termination of employment if there were not a
requirement to executive and not revoke the general release. “Good reason” shall mean (a) a
material diminution in your authority, duties or responsibilities, (b) a material diminution in
your base salary or bonus opportunity; (c) a material breach by ACL of any term of this letter
agreement; or (d) a change in your office location to a point more than fifty (50) miles from
Jeffersonville, Indiana, provided, however, that in all cases, prior to your
termination for “good reason,” you must give ACL written notice describing the events constituting
“good reason” within 90 days of the initial occurrence of such events and ACL must be given 45 days
to cure such events.

.2 Section 409A. In the event that any compensation with respect to your termination is
“deferred compensation” within the meaning of Section 409A of the Internal Revenue Code (the
“Code”) and the regulations thereunder (“Section 409A”), the stock of ACL or any affiliate is
publicly traded on an established securities market or otherwise, and you are determined to be a
“specified employee,” as defined in Section 409A(a)(2)(B)(i) of the Code, payment of such
compensation shall be delayed as required by Section 409A. Such delay shall last six (6) months
from the date of your termination, except in the event of your death. Within thirty (30) days
following the end of such six-month period, or, if earlier, your death, ACL will make a catch-up
payment to you equal to the total amount of such payments that would have been made during the
six-month period but for this section. Wherever payments under this letter agreement are to be
made in installments, each such installment shall be deemed to be a separate payment for purposes
of Section 409A.

          Non-Competition/Non-Solicitation Provisions. In consideration of the terms and
conditions set forth herein, you hereby agree to the terms and conditions set forth in Appendix A
to this letter agreement.

          Board Position. You shall be designated by the Board of Directors to fill the next
vacancy on the Board and the Board intends to nominate you for election to the Board of
Directors of the Company at the 2008 annual meeting of stockholders. You shall not be

entitled to additional compensation for serving as a director of the Company or as an officer (or
similar function) or a member of the Board or the board of directors or managers of any subsidiary
or affiliate of the Company to which you may also be appointed.

[The rest of this page is intentionally blank.]

 

 

          Mike, ACL is very excited about offering you the opportunity for employment as President and
Chief Executive Officer. We believe you will make significant contributions toward our future
success.

          Please indicate your acceptance of the terms and conditions of this letter agreement,
including the attached appendixes, by signing in the space provided below and returning directly to
me.

          Regards,

          /s/ Clayton Yeutter

          Clayton Yeutter, Chairman of the Board of Directors

I accept the terms and conditions of this letter agreement.

/s/ Michael P. Ryan                    

Michael P. Ryan

Date: March 14, 2008

 

 

APPENDIX A

          1. Noncompetition; Nonsolicitation; Confidential Information, etc. Michael P. Ryan
(the “Executive”) hereby acknowledges that, during and solely as a result of Executive’s
employment by American Commercial Lines Inc. (or “ACL”), the Executive will have access to
confidential information and business and professional contacts. In consideration therefor, the
Executive hereby agrees to be bound by and acknowledges the reasonableness of the following
covenants, which are specifically relied upon by ACL in entering into the letter agreement.
Executive acknowledges and agrees that each of the individual provisions of this Appendix A
constitutes a separate and distinct obligation of the Executive to ACL, individually enforceable
against the Executive.

               1.1 Covenant Not to Compete. For a period of 12 months following the termination of
the Executive’s employment by ACL, the Executive shall not, without the consent of the Board of
Directors of ACL, in any form or any manner, directly or indirectly, on the Executive’s own behalf
or in combination with others, become engaged in (as an individual, partner, stockholder, director,
officer, principal, agent, independent contractor, employee, trustee, lender of money or in any
other relation or capacity whatsoever, except as a holder of securities of a corporation whose
securities are publicly traded and which is subject to the reporting requirements of the Securities
Exchange Act of 1934, as amended, and then only to the extent of owning not more than two percent
(2%) of the issued and outstanding securities of such corporation or other entity) or provide
services to any business which renders services or sells products, or proposes to render services
or sell products, that compete with the Business of ACL or any of its subsidiaries within the
United States and any foreign country in which ACL or any of its subsidiaries conducts any aspect
of the Business during the term of the letter agreement. For purposes of this Appendix A, the term
“Business” shall mean inland marine transportation, ancillary services and marine vessel
construction and repair in the United States.

               1.2 Covenant Not to Solicit Employees. For a period of 12 months following the
termination of the Executive’s employment by ACL, the Executive agrees and covenants that he shall
not, for any reason, directly or indirectly, solicit or endeavor to entice away from ACL and its
subsidiaries and affiliates (whether for the Executive’s own benefit or on behalf of another person
or entity), or facilitate the solicitation or enticement of, any executive or management employee
of ACL and its subsidiaries and affiliates to work for the Executive, any affiliate of the
Executive or any competitor of ACL and its subsidiaries and affiliates, nor shall the Executive
otherwise attempt to interfere (to ACL’s detriment) in the relationship between ACL or any of its
subsidiaries or affiliates and any such employees; provided, however, that a general solicitation
that does not specifically identify the Executive or covered employees shall not be deemed to
violate this Section 1.2.

               1.3 Covenant Not to Solicit Customers. For a period of 12 months following the
termination of the Executive’s employment by ACL, the Executive agrees and covenants that he shall
not, directly or indirectly, in any form or manner, contact, solicit, or facilitate the contacting
or solicitation of, any Customer of ACL and its subsidiaries and affiliates for the purpose of
competing with the Business. For purposes of this Appendix A, the term “Customer” shall mean and
refer to each person or entity that has a contract with or is actively being solicited by ACL and
its subsidiaries and affiliates with respect to the Business during the period of Executive’s
employment hereunder.

               1.4 Covenant of Confidentiality. At any time during the term of Executive’s
employment with ACL (pursuant to the letter agreement or otherwise), and for a period of five (5)
years after the termination of Executive’s employment with ACL for any reason, Executive shall not,
except in furtherance of the Business of ACL and its subsidiaries and affiliates or otherwise with
the prior authorization of ACL, in any form or manner, directly or indirectly, divulge, disclose or
communicate to any person, entity, firm, corporation or any other third party (other than in the
course of Executive’s employment hereunder), or utilize for Executive’s personal benefit or for the
benefit of any competitor of ACL and its subsidiaries and affiliates any Confidential Information.
ACL and the Executive acknowledge and agree that such Confidential Information is extremely
valuable to ACL and shall be deemed to be a “trade secret.” In the event that any part of the
Confidential Information becomes generally known to the public through legitimate origins (other
than by the breach of this Appendix A by the Executive or by misappropriation), or is required to
be disclosed by legal, administrative or judicial process (provided that the Executive has provided
ACL reasonable prior notice of such request and ACL has had a reasonable opportunity, at

 

 

its expense, to dispute, defend or limit such request for the Confidential Information), that
part of the Confidential Information shall no longer be deemed Confidential Information for
purposes of this Appendix A, but the Executive shall continue to be bound by the terms of this
Appendix A as to all other Confidential Information.

               1.5 Return of Property. Upon termination of the letter agreement for any reason, the
Executive shall promptly deliver to ACL all correspondence, drawings, blueprints, manuals, letters,
notes, notebooks, reports, programs, plans, proposals, financial documents or any other documents,
including all copies in any form or media, concerning ACL’s Customers, marketing strategies,
products or processes which contain any Confidential Information.

               1.6 Assignment of Inventions. The Executive shall assign to ACL all rights, title
and interests in any trade secrets and other products or other inventions relating to ACL’s
business developed by him alone or in conjunction with others at any time while employed by ACL.

               1.7 Equitable Remedies. In the event that Executive breaches any of the terms or
conditions set forth in this Appendix A, Executive stipulates that such breach will result in
immediate and irreparable harm to the business and goodwill of ACL and that damages, if any, and
remedies at law for such breach would be inadequate. ACL shall therefore be entitled to apply for
and receive from any court of competent jurisdiction an injunction to restrain any violation of
this Appendix A and such further relief as the court may deem just and proper.

               1.8 Continuing Obligation. Upon termination of the letter agreement for any reason,
the obligations, duties and liabilities of Executive pursuant to this Appendix A are continuing,
and for the periods set forth in such provisions hereof are absolute and unconditional, and shall
survive and remain in full force and effect as provided in each such Section. Notwithstanding
anything else contained in the letter agreement to the contrary, the parties hereto agree that in
the event Executive breaches any of the terms contained in this Appendix A, the obligation of ACL
to pay any base salary or bonus under the letter agreement shall terminate as of the date of such
breach by the Executive.

               1.9 Post-Termination Violations. In the event, and at the moment, that Executive
violates any of his duties or obligations set forth in this Appendix A that continue after any
termination that occurs during the Term of employment for any reason, (x) Executive shall
immediately forfeit any right to exercise any unexercised options that previously vested pursuant
to the terms of the letter agreement or any stock option agreements to which Executive is a party,
(y) any unvested options, shares of restricted stock or other equity awards will immediately be
cancelled and forfeited and (z) all severance payments described in the letter agreement shall
immediately cease and be forfeited.

 

 

APPENDIX B

          THIS STOCK OPTION AGREEMENT, including the accompanying Award Notice (the “Award Notice”)
issued to the Optionee named therein (both of which together shall constitute the “Agreement”), is
made as of the Grant Date set forth in the Award Notice between American Commercial Lines Inc., a
Delaware corporation (the “Company”), and the Optionee. Capitalized terms used herein that are not
otherwise defined shall have the meaning ascribed to them in the American Commercial Lines Inc.
stock plan designated in the Award Notice (the “Plan”).

W I T N E S S E T H:

          WHEREAS, the Company desires to provide the Optionee with the opportunity to purchase shares
of its common stock, par value $0.01 per share (“Common Stock”), in accordance with the terms of
the Plan.

          NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
hereinafter contained:

          1. Grant of Option. The Company hereby grants to the Optionee the option to purchase
all or part of an aggregate of the number of shares of Common Stock set forth in the Award Notice,
on the terms and conditions set forth in the Plan, subject to the vesting, exercise and other
requirements set forth in the Agreement, to the extent not inconsistent with the Plan (the
“Option”).

          2. Purchase Price. The per share purchase price of the shares of Common Stock issuable
upon exercise of the Option shall be the Exercise Price set forth in the Award Notice, which the
Committee has determined is equal to 100% of the Fair Market Value (as defined in the Plan) of a
share of Common Stock on the Grant Date.

          3. Type of Stock Option. The Option is not intended to qualify as an incentive stock
option under Section 422 of the Internal Revenue Code of 1986, as amended.

          4. Term. The term of the Option shall expire as of the earliest of the following:

          (a) the date that is ten (10) years from the Grant Date;

          (b) to the extent the Option is vested on the date of such termination, the date that is one
(1) day following the date that the Optionee’s employment with the Company, or any Subsidiary or
Affiliate, is terminated for Cause, as defined in Section 5(e);

          (c) to the extent the Option is vested on the date of such termination, the date that is
ninety (90) days after the Optionee’s employment with the Company, or any Subsidiary or Affiliate,
is terminated other than (i) for Cause or (ii) upon the Optionee’s death, Disability or Retirement,
as defined in the Plan;

          (d) to the extent the Option is vested on the date of such termination, the date that is
twelve (12) months after the Optionee’s employment with the Company, or any Subsidiary or
Affiliate, is terminated as a result of the Optionee’s Disability, as defined in the Plan;

          (e) to the extent the Option is vested on the date of such death, the date that is twelve (12)
months after the Optionee dies while employed by the Company, or any Subsidiary or Affiliate; or

          (f) to the extent the Option is vested on the date of such Retirement, the date that is twelve
(12) months after the date the Optionee’s employment with the Company, or any Subsidiary or
Affiliate, is terminated as a result of the Optionee’s Retirement, as defined in the Plan (provided
that if the Optionee dies within such twelve (12) month period, any such unexercised Option shall
continue to be exercisable for twelve (12) months from the date of such death).

          In the event of a termination of the Optionee’s employment for Cause, the Optionee shall
forfeit all rights hereunder with respect to any vested Options one day after the date of such
termination. Subject to the foregoing terms of this Section 4, if the Optionee’s employment
terminates for any reason, the Optionee shall forfeit all rights hereunder with respect to any
non-vested Options as of the date of such termination, including the right to purchase
shares of Common Stock under the Option.

 

 

          5. Vesting. (a) Subject to any forfeiture provisions in this Agreement or in the Plan,
the Optionee shall become vested in the Option in accordance with the vesting schedule and
performance criteria, if any, set forth in the Award Notice.

          (b) Notwithstanding the vesting schedule contained in the Award Notice, in the event of a
“Change in Control,” the Optionee shall become 100% vested in the Option. For purposes of this
Agreement, a “Change in Control” shall mean the occurrence of any of the following events, each of
which shall be determined independently of the others: (i) any “Person” (as hereinafter defined),
other than a holder of at least 10% of the outstanding voting power of the Company as of the date
of this Agreement, becomes a “beneficial owner” (as such term is used in Rule 13d-3 promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of a majority of the
stock of the Company entitled to vote in the election of directors of the Company; (ii) individuals
who are Continuing Directors of the Company (as hereinafter defined) cease to constitute a majority
of the members of the Board; (iii) stockholders of the Company adopt and consummate a plan of
complete or substantial liquidation or an agreement providing for the distribution of all or
substantially all of the assets of the Company; (iv) the Company is a party to a merger,
consolidation, other form of business combination or a sale of all or substantially all of its
assets, with an unaffiliated third party, unless the business of the Company following consummation
of such merger, consolidation or other business combination is continued following any such
transaction by a resulting entity (which may be, but need not be, the Company) and the stockholders
of the Company immediately prior to such transaction hold, directly or indirectly, at least a
majority of the voting power of the resulting entity; provided, however, that a merger or
consolidation effected to implement a recapitalization of the Company (or similar transaction)
shall not constitute a Change in Control; (v) there is a Change in Control of the Company of a
nature that is reported in response to item 5.01 of Current Report on Form 8-K or any similar item,
schedule or form under the Exchange Act, as in effect at the time of the change, whether or not the
Company is then subject to such reporting requirements; provided, however, that for purposes of
this Agreement a Change in Control shall not be deemed to occur if the Person or Persons deemed to
have acquired control is a holder of at least 10% of the outstanding voting power of the Company as
of the date of this Agreement; or (vi) the Company consummates a transaction which constitutes a
“Rule 13e-3 transaction” (as such term is defined in Rule 13e-3 of the Exchange Act) prior to the
termination or expiration of this Agreement.

          (c) In the event of a Rule 13e-3 transaction, then effective coincident with the consummation
of such Rule 13e-3 transaction, all non-vested Options issued hereunder shall immediately vest and
be exercisable by Optionee notwithstanding the vesting schedule set forth in the Award Notice;
provided, however, that notwithstanding the foregoing, in connection with the consummation of such
Change in Control or Rule 13e-3 transaction, all such non-vested Options then held by the Optionee
shall be deemed to vest and become exercisable at such time in order to permit Optionee to
participate in such transaction.

          (d) Notwithstanding the vesting schedule contained in the Award Notice, in the event of a
termination of employment by the Optionee with Good Reason (as hereinafter defined), by the Company
without Cause (as hereinafter defined), or due to death or due to Disability, then the Optionee
shall become 100% vested in the Option as of the date of such termination.

          (e) For purposes of this Agreement:

	 	(i)	 	“Continuing Directors” shall mean the members of the Board on the Grant Date, provided that any person becoming a
member of the Board subsequent to such date whose election or nomination for election was supported by at least a
majority of the directors who then comprised the Continuing Directors shall be considered to be a Continuing Director.
	 
	 	(ii)	 	“Person” is used as such term is used in Sections 13(d) and 14(d) of the Exchange Act.
	 
	 	(iii)	 	“Cause” shall have the meaning set forth in the employment agreement, if any, between the Company and
the Optionee, or if no such employment agreement exists, then such term shall have the meaning set forth in
the Plan.

 

 

	 	(iv)	 	“Good Reason” shall have the meaning set forth in the employment agreement, if any, between the
Company and the Optionee or, if no such employment agreement exists, such term shall mean the
resignation of the Optionee from employment with the Company following the occurrence of either or both
of the events set forth in clauses (A) and (B) below without the prior written consent of the Optionee,
provided that, in connection with either or both events, (1) the Optionee delivers written notice to the
Company of his or her intention to resign from employment due to either or both of such events, which
notice specifies in reasonable detail the circumstances claimed to provide the basis for such resignation, and
(2) such event or events are not cured by the Company within fifteen (15) days following delivery of such
written notice:

	 	(A)	 	any reduction in the Optionee’s annual rate of base salary; or
	 
	 	(B)	 	any removal by the Company of the Optionee from his or her
position or the assignment to the Optionee of duties and
responsibilities materially inconsistent and adverse with
such position, except in connection with termination of the
Optionee’s employment for Cause or disability.

          6. Exercise. The Optionee shall not be entitled to exercise the Option until it is
vested. Subject to the provisions of Section 4, the Option may be exercised only while the Optionee
is employed by the Company or an Affiliate or Subsidiary of the Company. In no event shall the
Option be exercisable after the expiration date of the Option.

          7. Nontransferability. The Option shall not be transferable or assignable other than
by will or the laws of descent and distribution, or pursuant to a qualified domestic relations
order as described in Section 206(d) of the Employee Retirement Income Security Act of 1974, as
amended, subject to Article 3. Any other attempt to assign, transfer, pledge, hypothecate, dispose
of or subject the Option to execution, attachment or similar process shall be null and void and
without effect. The Option may be exercised during the lifetime of the Optionee only by the
Optionee, his guardian or his legal representative, or by an alternate payee pursuant to a
qualified domestic relations order.

          8. Method of Exercising Options.

     (a) Subject to the terms and conditions of this Agreement, the Option may be exercised by
notice delivered to the Company or its designated representative in accordance with procedures
prescribed by the Company or such designated representative. Such notice shall state that the
Option is being exercised thereby and shall specify the number of shares of Common Stock being
purchased. The notice shall be accompanied by payment in full of the Option price for such shares
of Common Stock, such payment to be made in (i) cash, as described in Section 8(c) of the Plan;
(ii) subject to Section 8(c) of the Plan, that number of shares of unrestricted Common Stock which
has an aggregate Fair Market Value as of the date of exercise equal to the aggregate exercise price for all of the shares of Common Stock subject to such exercise; (iii)
shares of Common Stock which would otherwise be delivered pursuant to the exercise of the Option
having an aggregate Fair Market Value, determined as of the date of exercise, equal to the amount
necessary to satisfy such obligation, provided that the Committee determines that such withholding
of shares does not cause the Company to recognize an increased compensation expense under
applicable accounting principles; (iv) a combination of methods (i), (ii) and (iii); (v) to the
extent permitted by applicable law, pursuant to independently-arranged broker assisted “cashless”
exercise with third party brokers unrelated to the Company; or (vi) other means authorized by the
Committee in accordance with Section 8(c) of the Plan. If the tender or withholding of shares of
Common Stock as payment of the Option price would result in the issuance of fractional shares of
Common Stock, the Company shall instead return the balance in cash or by check to the Optionee. If
the Option is exercised by any person or persons other than the Optionee, the exercise of the
Option shall be subject to appropriate proof (as determined by the Committee) of the right of such
person or persons to exercise the Option under the terms of the Plan and this Agreement. As soon as
practicable after notice and payment are received and the exercise is approved, the Company shall
either issue and deliver, in the name of the person or persons exercising the Option, a certificate
or certificates representing such shares or direct the transfer agent designated by the Company to
record the issuance of such shares to such person or persons in book entry form.

          (b) The Option may be exercised in accordance with the terms of the Plan and this Agreement
with respect to any whole number of shares subject to the Option, but in no event may an Option be
exercised as to fewer than one hundred (100) shares at any one time, or the remaining shares covered by the Option if less
than two hundred (200).

 

 

          (c) The Optionee shall have no rights of a stockholder with respect to shares of Common Stock
to be acquired by the exercise of the Option until the date of issuance of such shares. Except as
otherwise expressly provided in the Plan, no adjustment shall be made for dividends or other rights
for which the record date is prior to the date such shares are issued. All shares of Common Stock
purchased upon the exercise of the Option as provided herein shall be fully paid and
non-assessable.

          (d) The Optionee agrees that no later than the date as of which an amount first becomes
includible in his gross income for federal income tax purposes with respect to the Option, the
Optionee shall pay to the Company, or make arrangements satisfactory to the Company regarding the
payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld
with respect to such amount. Withholding obligations may be settled with Common Stock, including
Common Stock that is acquired upon exercise of the Option, having an aggregate Fair Market Value
not in excess of the amount determined by applying the minimum statutory withholding rate. The
obligations of the Company under this Agreement and the Plan shall be conditional on such payment
or arrangements, and the Company, its Affiliates and Subsidiaries shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment otherwise due to the Optionee.

          9. Adjustment upon Changes in Capitalization. Subject to any required action by the
stockholders of the Company and the terms of the Plan, if, during the term of this Agreement, there
shall be any increase or decrease in the number of issued shares of Common Stock resulting from a
stock split, reverse stock split, stock dividend, combination or reclassification of the Common
Stock or any other increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company (as defined in Section 14 of the Plan), the
Committee may, in its sole discretion, make an appropriate and equitable adjustment in the
aggregate number, kind and option price of shares subject to this Option; provided, however, that
in no event shall the Option price be adjusted below the par value of a share of Common Stock, nor
shall any fraction of a share be issued upon the exercise of the Option.

          10. Conditions Upon Issuance of Option. As a condition to the exercise of the Option,
the Company may require the Optionee to represent and warrant at the time of any such exercise that
the Common Stock is being purchased only for investment and without any present intention to sell
or distribute such shares if, in the opinion of legal counsel for the Company, such a
representation is required by any relevant provision of law.

          11. Notices. Except as otherwise prescribed by the Company or its authorized
representative, each notice relating to this Agreement shall be in writing and shall be
sufficiently given if delivered by registered or certified mail, or by a nationally recognized
overnight delivery service, with postage or charges prepaid, to the address hereinafter provided in
this Section 11. Any such notice or communication given by first-class mail shall be deemed to have
been given two business days after the date so mailed, and such notice or communication given by
overnight delivery service shall be deemed to have been given one business day after the date so
sent, provided such notice or communication arrives at its destination. Each notice to the Company
shall be addressed to it at its offices at 1701 East Market Street, Jeffersonville, Indiana 47130
(attention: Senior Vice President, Law and Administration), with a copy to the Chairman of the
Compensation Committee of the Company or to such other designee of the Company. Each notice to the
Optionee or other person or persons then entitled to exercise the Option shall be addressed to the
Optionee or such other person or persons at the address of such person last known to the Company.

          12. Limitations. The terms and conditions of this Agreement and the rights of the
Optionee in connection with any Common Stock received upon the Optionee’s exercise of the Option
are subject to the Company’s Executive Officer Stock Ownership Guidelines. Nothing contained in
this Agreement shall be construed as conferring upon the Optionee the right to continue as an
employee, or shall affect the right of the Company, in its sole discretion, to terminate the
Optionee’s employment at any time, with or without cause.

          13. Incorporation of the Plan. Notwithstanding the terms and conditions contained
herein, this Agreement shall be subject to and governed by all the terms and conditions of the
Plan, which is hereby incorporated by reference. In the event of any discrepancy or inconsistency
between the terms and conditions of this Agreement and of the Plan, the terms and conditions of the
Plan shall control.

 

 

          14. Interpretation. The interpretation and construction of any terms or conditions of
the Plan, or of this Agreement or other matters related to the Plan by the Committee, shall be
final and conclusive.

          15. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement or the application thereof to any party or circumstance shall be prohibited by or
be invalid under applicable law, then such provision shall be ineffective to the minimal extent of
such provision or the remaining provisions of this Agreement or the application of such provision
to other parties or circumstances.

          16. Enforceability. This Agreement shall be binding upon the Optionee and such
Optionee’s estate, personal representative and beneficiaries.

          17. Pronouns, Singular/Plural. Any use of any masculine pronoun shall include the
feminine and vice-versa, and any use of a singular shall include the plural or vice-versa, as the
context and facts may require.

 

 

APPENDIX C

FORM OF GENERAL RELEASE AND WAIVERexv10w2

 

EXHIBIT 10.2

February 18, 2008

Chris Black, Chief Financial Officer

American Commercial Lines, Inc.

1701 East Market Street

Jeffersonville, IN 47130-4717

Dear Mr. Black:

As we discussed, you have advised us that you intend to resign your employment following the
February 22, 2008 expiration of your employment agreement with ACL dated as of February 22, 2005
(the “Employment Agreement”). Accordingly, to facilitate a smooth transition, we have agreed as
follows:

	 	•	 	You will continue to serve as the Senior Vice President and Chief Financial Officer
(“CFO”) of ACL until February 29, 2008, at which time you will resign as the CFO of ACL.
You acknowledge that the Employment Agreement will expire by its terms on February 22, 2008
and that nothing in this letter will be deemed to constitute a renewal of the Employment
Agreement. You further acknowledge that the events surrounding your entering into this
letter agreement do not constitute a “termination without cause” or a termination by you
“for good reason” as defined in the Employment Agreement and that you will not be entitled
to any of the benefits described in Section 5.2 of the Employment Agreement (other than
payment for benefits accrued but unpaid prior to your resignation). From March 1, 2008
through April 30, 2008, you will provide consulting services to ACL on an as needed and as
requested basis to assist ACL in implementing a successful transition of the duties of CFO
to your successor or any interim CFO. You will perform such other reasonable duties as may
be directed by the Chief Executive Officer of ACL. Your obligation to provide consulting
services to ACL shall consist primarily of making yourself reasonably available, as ACL may
reasonably request, to respond to questions and confer with ACL’s officers or other
designated representatives on work transition matters. Following the close of business on
April 30, 2008, your consulting services will be concluded unless mutually agreed in
writing by the parties hereto.
	 
	 	•	 	From the effective date of this letter agreement until the close of business on April
30, 2008, you will continue to receive your annual base salary, at the level in effect on
the date hereof.
	 
	 	•	 	Following the termination of your employment on February 29, 2008, any of your unvested
equity awards will immediately terminate. You will be entitled to exercise any of your
then vested stock options for the periods set forth in the applicable stock option award
agreement.
	 
	 	•	 	Following your termination from employment on February 29, 2008 provided that you
timely elect health care continuation coverage pursuant to COBRA, ACL will reimburse you up
to $1,100 a month for the cost of your COBRA coverage for the duration of the term of this
agreement. You understand that the payments attributable to continuation of medical
coverage are subject to taxation at ordinary income rates.
	 
	 	•	 	Your continued receipt of base salary and your COBRA reimbursement from March 1, 2008
through April 30, 2008 is contingent on your executing, and not revoking, the form of
release attached hereto as Exhibit A within 30 days of your termination of employment.
Your first base salary and COBRA reimbursement following the expiration of the revocation
period will be cumulative of all base salary payments and COBRA reimbursements you would
have received following your termination of employment if there were not a requirement to
execute and not revoke the form of release attached as Exhibit A.
	 
	 	•	 	ACL will allow you to transfer the ACL issued cell phone number used by you during your
employment to a personal cell phone account at your expense. ACL will also forward any
personal correspondence, letters, or requests to you during your consulting period.

 

 

Please indicate your acceptance of the terms and conditions of this letter agreement by signing in
the space provided below and returning directly to me. In addition, please execute the release
contained in Exhibit A and return it to me.

Regards,

/s/ Clayton Yeutter

Clayton Yeutter

Chairman of the Board of Directors

I accept the terms and conditions of this letter agreement.

/s/ Christopher A. Black  
             
     

Christopher A. Black

Date: February 18, 2008

 

 

Exhibit A

RELEASE AND WAIVER OF EMPLOYMENT AND

TERMINATION OF EMPLOYMENT CLAIMS

     This Release and Waiver of Employment and Termination of Employment Claims (hereinafter the
“Release”) is made and entered into by Christopher Black (hereinafter the “Employee”), in favor of
American Commercial Lines Inc, a Delaware corporation with a business address of 1701 East Market
Street, Jeffersonville, Indiana 47131 and all parent, related, affiliated and subsidiary companies,
and each of their respective and collective predecessors, successors, employees, officers,
directors, interest holders, representatives, assigns, agents, insurers and employee benefit
programs and the trustees, administrators, fiduciaries and insurers of such benefit programs
(collectively, the “Company”).

.3 RECITALS

1. Employee’s active employment with the Company will end on February 29, 2008.

2. Employee has reviewed this Release and these materials and desires to waive certain claims or
potential claims Employee may have against the Company and certain other entities in order to
receive benefits under the terms of the letter agreement between Employee and the Company dated
February 18, 2008 (the “Letter Agreement”).

3. The Company and Employee desire to fully and finally settle all issues and disputes, if any,
between them.

     NOW, THEREFORE, in recognition of the foregoing, and in exchange for the good and valuable
consideration provided herein, the receipt and sufficiency of which is hereby acknowledged,
Employee and the Company hereby agree as follows:

1. Conclusion of Employment

     (a) Employee’s active employment with the Company will end on February 29, 2008 (hereinafter
the “Separation Date”). Employee promises that within seven days after the Separation Date,
Employee returned or will return to the Company all files, records, credit cards, keys, computers
or any other Company property which is in Employee’s possession or control.

     (b) Employee acknowledges and agrees that the covenants contained in Section 7 of that certain
Employment Agreement dated as of February 22, 2005 (the “Employment Agreement”) shall survive the
termination of the Employee’s employment for the periods set forth therein.

     (c) Employee understands and acknowledges that this Release and the benefits being offered
pursuant to the terms of the Letter Agreement are not part of a group severance plan or
arrangement.

2. Payments to Employee

     (a) The Company agrees to pay Employee, payments described in the Letter Agreement (the
“Severance Payments”). Such Severance Payments shall be provided to Employee once this Release has
become irrevocable.

     (b) As additional consideration, specifically for the release of age discrimination claims
potentially arising under the Age Discrimination in Employment Act, the Company will pay Employee
amounts that are above and beyond any amounts that Employee is otherwise entitled to pursuant to
the Employment Agreement or other Company policies (this amount is referred to herein as
“Additional Consideration”). The Additional Consideration is part of the Severance Payments payable
to Employee pursuant to Section 2(a) of this Release and any other benefits being provided under
the terms of this Release (Severance Payments and Additional Consideration are sometimes referred
to collectively as “Separation Pay”).

     (c) Payment of benefits conditioned on the signature of this Release by Employee will commence
within fourteen (14) days of the date that this Release becomes irrevocable under Section 4 of this
Release.

     (d) Employee understands and acknowledges that the Company will deduct from Separation Pay
withholding taxes and other deductions that the Company is required by law to deduct from payments
to employees.

     (e) Employee understands and acknowledges that the Separation Pay and other consideration
given by the Company to Employee, and in exchange for this Release, is more than the Company is
required to pay under its normal policies and procedures.

 

 

     (f) Employee further understands and acknowledges that the Additional Consideration given by
the Company in exchange for the release of age discrimination claims potentially arising under the
Age Discrimination in Employment Act, is more than the Company is required to pay under the
Employment Agreement and the Company’s normal policies and procedures and is in addition to what
the Company is required to pay under the terms of its policies and procedures.

3. Complete Release

     (a) In consideration of the payments and benefits received hereunder, except for claims
challenging the validity of this Release, Employee agrees forever to release, discharge, and
covenant not to sue the Company, its past, present, or future parent companies (direct or
indirect), subsidiaries, and/or other affiliates, and any and all of their past and present
directors, officers, shareholders, interest holders, employees, attorneys, and other agents and
representatives, and any employee benefit plans in which Employee is or has been a participant by
virtue of employment with the Company, and the trustees, administrators, fiduciaries and insurers
of such benefit plans from any and all claims, debts, demands, accounts, judgments, rights, causes
of action, claims for equitable relief, damages, costs, charges, complaints, obligations, promises,
agreements, controversies, suits, expenses, compensation, responsibility and liability of every
kind and character (including attorneys’ fees and costs), whether in law or equity, known or
unknown, asserted or unasserted, suspected or unsuspected, which Employee may currently have
against such entities, including, without limitation, any and all claims arising out of Employee’s
employment with the Company or the termination thereof, the design or administration of any
employee benefit program, claims to severance or similar benefits under any program, policy, or
procedure of the Company other than the payments recited in the Letter Agreement, and any and all
other claims arising under federal, state, or local laws relating to employment, including without
limitation claims of wrongful discharge, breach of express or implied contract, fraud,
misrepresentation, defamation, or liability in tort, claims of any kind that may be brought in any
court or administrative agency, and claims arising under Title VII of the Civil Rights Act of 1964,
the Age Discrimination in Employment Act (29 U.S.C. §§ 621 et seq.), the Americans with
Disabilities Act, the Fair Labor Standards Act, the Employee Retirement Income Security Act, the
Family and Medical Leave Act, the National Labor Relations Act, the Railway Labor Act, and similar
state or local statutes, ordinances, and regulations; provided, however, this Release does not
release or affect, or constitute a waiver of, (i) any rights of Employee under the Letter
Agreement, (ii) any right Employee may have with respect to any vested benefits under any of the
Company’s employee retirement, pension, retirement savings and/or welfare benefit plans, (iii) any
rights Employee may have to exercise options that have vested as of February 29, 2008 in accordance
with the terms of the applicable stock option award agreements, (iv) any rights Employee may have
for indemnification or insurance coverage relating in any way to Employee’s service as an officer,
employee and/or representative of the Company, or (v) any claims based on any actions or events
occurring after Employee’s execution of this Release.

     (b) This release and waiver by Employee is on behalf of Employee, Employee’s spouse (if any),
child or children (if any), and heirs, beneficiaries, devisees, executors, administrators,
attorneys, personal representatives, successors and assigns.

4. Release of Age Discrimination Claims; Encouragement to Consult with Attorney; Period for
Review.

     (a) Release of Age Discrimination Claims. Employee understands and agrees that this
document includes a release of claims arising under the Age Discrimination in Employment Act and
that Employee does not waive rights or claims that may arise after the date the waiver is executed.
Employee understands and acknowledges that Employee will have up to forty-five (45) days to review
and consider this Release. Employee further understands and acknowledges that Employee may use as
much or all of this 45-day period as Employee wishes before signing, and that Employee has done so.

     (b) Additional Consideration. Employee again understands and acknowledges that
Employee is receiving Additional Consideration from the Company in exchange for the release of age
discrimination claims potentially arising under the Age Discrimination in Employment Act (as
outlined above). Employee further understands and acknowledges that the Additional Consideration
given to Employee by the Company in exchange for the release of age discrimination claims
potentially arising under the Age Discrimination in Employment Act is more than the Company is
required to pay under the Employment Agreement and the Company’s normal policies and procedures and
is in addition to what the Company is required to pay under its normal policies and procedures.

     (c) Encouragement to Consult with Attorney. Employee understands and acknowledges
that this is a legal document and that Employee is hereby advised to consult with an attorney prior
to executing this Release. By signing below, Employee warrants that Employee has had the
opportunity to consult with an attorney prior to any execution of this Release, and to be fully and
fairly advised by that legal counsel as to the terms of this Release.

     (d) Period for Review. Employee understands that Employee has seven (7) days after
signing this Release to revoke it by notice in writing delivered to AMERICAN COMMERCIAL LINES LLC;
ATTN: Senior Vice President Legal and Administration; 1701 Market Street, Jeffersonville, Indiana
47131-0610. This Release shall be binding, effective, and enforceable upon the expiration of this
seven-day revocation period without such revocation being received, but not before such time.
Employee understands and agrees that benefit payments contingent upon the execution of this Release
will not be made prior to the expiration of this seven-day revocation period. Payment of
Separation Pay or other monetary benefits conditioned on the execution of this Release will be made
within fourteen (14) days of the expiration of the seven-day revocation period.

 

 

5. No Future Lawsuits

     By signing this Release, Employee promises never to file or pursue a claim, lawsuit or any
other complaint or charge asserting any of the claims, complaints or charges that are released in
this Release.

6. Non-Admission of Liability.

     Employee understands and agrees that the Company’s willingness to make payments and pay
benefits to him or her under this Release is not an admission of liability, or obligation to
provide such consideration in the absence of Employee signing this Release.

7. Non-Release of Future Claims

     This Release does not waive or release any rights or claims that Employee may have under the
Age Discrimination in Employment Act which may arise after the later of the date Employee signs
this Release, or the Separation Date.

8. Repayment of Benefits Based on Subsequent Assertion of Claim; Indemnification for Costs Incurred
by The Company; No Limitation on Covenant Not To Sue

     (a) Repayment of Benefits Based on Subsequent Assertion of Claim. Employee understands
and agrees that Employee may not pursue any claim, lawsuit, or other charge or complaint asserting
any of the claims, complaints or charges that are released in this Release. Employee further
understands and agrees that if Employee should breach this covenant not to sue, and if a Court
should, for any reason, find Employee’s release of claims, as set forth in this Release, void,
voidable, imperfect, or incomplete in any respect, Employee may be liable for the repayment of some
or all of the Separation Pay and the value of any other benefits Employee received pursuant to the
terms of this Release. Statutes of limitations will run on all claims without regard to Employee’s
execution of this Release. In addition, if Employee breaches his or her covenant not to sue, as
set forth in Section 5, Employee shall forfeit all right to future benefits, if any.

     (b) Indemnification for Costs Incurred by the Company. Employee acknowledges and
agrees that if Employee breaks his or her covenant not to sue or promise not to assert claims
against the Company in the future, by filing a claim, lawsuit or other complaint asserting any of
the claims, complaints or charges that are released in this Release, and a Court finds Employee’s
actions to be in breach of the terms of this Release, Employee will pay the Company’s costs and
reasonable attorneys’ fees in defending such claim, lawsuit, or other complaint.

     (c) No Limitation on Covenant Not to Sue. Nothing in this Section shall be construed
to limit Employee’s covenant not to sue or promise not to assert claims, as set forth above.

9. Subsequent Reemployment with The Company or Any Affiliated Company

     An eligible employee who accepts Separation Pay and who subsequently applies for and/or
accepts employment with the Company or any company affiliated with the Company forfeits any
remaining unpaid Separation Pay. If Employee has been paid a number of Separation Pay weeks
greater than the number of weeks of actual unemployment, Employee shall be obligated to repay the
difference to the Company as a condition as a condition of reemployment with the Company or
affiliated company. To the extent the Company decides to waive this provision, which it may or may
not elect to do, in its sole discretion, this provision may only be waived in writing duly signed
by the Senior Vice President — Human Resources of the Company or similarly designated officer.

10. Governing Law

     This Release shall be governed and construed in all respects in accordance with the laws of
the State of Indiana without regard to the conflict of laws provisions contained therein.

11. Severability and Consequences of Invalid Terms

     Except as otherwise specified herein, if any portion of this Release is found void or
unenforceable for any reason by any Court, the Court should enforce all portions of this Release to
the maximum extent which would have been enforceable in the original Release. If such portion
cannot be modified to be enforceable, the unenforceable portion will be severed from the remaining
portions of this Release, which shall otherwise remain in full force and effect; provided,
however, that the release provision set forth in Section 3 above is a material term of this
Release and, if such provision is found to be invalid or unenforceable, for any reason, then the
remainder of this Release shall be enforceable at the Company’s sole discretion.

12. Entire Agreement

 

 

     This Release contains the entire agreement between the Company and Employee pertaining to the
subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and
understandings in connection therewith. The Company has made no promises to Employee other than
those set forth in this Release. It is not necessary that the Company sign this Release for it to
become binding upon the Company and Employee. It shall be binding on the Company when it becomes
irrevocable pursuant to Section 4 above.

     PLEASE READ THIS AGREEMENT CAREFULLY. IT CONTAINS A RELEASE OF KNOWN AND UNKNOWN CLAIMS.

     BY SIGNING BELOW, I ACKNOWLEDGE THAT I HAVE READ THIS RELEASE; THAT I UNDERSTAND IT; AND THAT
I AM ENTERING INTO IT VOLUNTARILY AND OF MY OWN FREE WILL, WITHOUT ANY UNDUE DURESS, INTIMIDATION
OR COERCION.

     IN WITNESS WHEREOF, and intending to be legally bound hereby, Employee has executed this
Release after fully reading and understanding its terms.

	 	 	 	 	 
	 

	 	EMPLOYEE	 	 
	 
	 	 	 	 
	 

	 	  /s/ Christopher A. Black
 

Signature
	 	 
	 
	 

	 	  Christopher A. Black
 

	 	 
	 

	 	Printed Name	 	 
	 
	 	 	 	 
	 

	 	Dated:      February 18, 2008                    	 	 

WITNESS:

/s/ Frances Sarreela                    

Checks and subsequent correspondence should be sent to:

[Address on file with the Company]

Please note that checks and subsequent correspondence may be sent via certified mail, return
receipt requested. It will be Employee’s responsibility that the address provided remains current
and up-to-date and has at that address an individual authorized and able to receive such correspondence and checks.

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