Document:

Form of Commitment Letter

 Exhibit 10.1 
 August     , 2011 
 Horizon Lines, Inc. 

4064 Colony Road, Suite 200 
 Charlotte, North
Carolina 28211 
 Attention: Michael T. Avara 
 Form of Commitment Letter 
 Ladies and Gentlemen: 

We are pleased to confirm the arrangements under which the undersigned (the “Commitment Party”) commits to Horizon Lines, Inc.
(the “Company”) to purchase Secured Notes (as defined below) on the terms and subject to the conditions set forth in this letter and in Exhibits A, B, C, D and G attached hereto, each of which exhibits is expressly made a
part hereof and incorporated by reference hereto (collectively, together with Exhibits E and F attached hereto, each of which exhibits is also expressly made a part hereof and incorporated by reference hereto, as amended from time to time in
accordance with the terms hereof, the “Commitment Letter”). 
 Reference is made to the identical Restructuring Support
Agreements (together with the term sheets attached thereto, each, as currently in effect and as hereafter amended, supplemented or otherwise modified, an “RSA” and collectively, the “RSAs”), by and
between the Company and the holders set forth on the respective signature pages of each RSA (the “Exchanging Holders”) of the 4.25% convertible senior notes due 2012 (the “Notes”). Capitalized terms
used herein but not otherwise defined shall have the meanings given to them in the RSAs. Exchanging Holders or third parties (each an “Other Commitment Party”) that enter into substantially identical Commitment Letters
(“Similar Commitment Letters”) with the Company are referred to herein as “Commitment Parties.” 

As set forth in the RSAs, the Restructuring contemplates that $225 million of aggregate principal amount of first lien secured term notes (the
“First Lien Secured Notes”) and $100 million of aggregate principal amount of second lien secured term notes (consisting of (x) new second lien notes issued in the principal amount of up to $25 million in exchange for a
like principal amount of the Bridge Loan Facility plus (y) additional new second lien notes issued at the Closing Date in the aggregate amount of $100 million minus the principal amount of notes issued in exchange for loans under
the Bridge Loan Facility (collectively, the “Second Lien Secured Notes”, and together with the First Lien Secured Notes, the “Secured Notes”)) would be issued by Horizon Lines, LLC (the
“Issuer”) and guaranteed by the “Guarantors” described on Exhibit C for the 

 
First Lien Secured Notes and Exhibit D for the Second Lien Secured Notes (collectively, the “Guarantors” and, together with the Issuer, the “Note
Obligors”), having the terms set forth on Exhibits C and D. Prior to the issuance of the Secured Notes, the Restructuring contemplates entry into a bridge loan facility consisting of a term loan of up to $25 million in principal amount
having the terms substantially described on Exhibit E (the “Bridge Loan Term Sheet”, such facility, the “Bridge Loan Facility”) provided by certain Exchanging Holders and other parties to Parent, and
on the Closing Date, and concurrently with issuance of the Secured Notes, the Restructuring also contemplates (subject to modification) (i) a successful completion of the Exchange Offer consisting of the issuance of up to $280 million of new
Convertible Secured Notes and the issuance of up to $50 million of common stock in exchange for up to $330 million in principal amount of the outstanding Notes; and (ii) entry into a New ABL Facility provided by third party lenders. 

In consideration of the covenants and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows: 
  

	1.	Commitment 

 Subject to the terms,
conditions and limitations set forth herein, the Commitment Party is pleased to confirm its commitment (with respect to purchasing either the First Lien Secured Notes or the Second Lien Secured Notes or both, as the context requires, the
“Commitment”) to Company to purchase, directly or through one or more of its affiliates, on or before the Termination Date (as hereinafter defined), the principal amount specified for such Commitment Party on Exhibit A hereto
with respect to the First Lien Secured Notes and the principal amount specified for such Commitment Party on Exhibit B hereto with respect to the Second Lien Secured Notes. 
 It is anticipated that the Secured Notes will be issued in a private placement and will not be eligible for resale without restrictions. The note purchase agreements for the Secured Notes (the
“Note Purchase Agreements”) will contain covenants for the Issuer to deliver on the Closing Date any and all documentation and information necessary to satisfy the requirements of Rule 144A(d)(4) promulgated under the
Securities Act of 1933, as amended (the “Securities Act”). 
 The payment price for the purchase of the First Lien
Secured Notes shall be equal to 100% of the aggregate principal amount of the First Lien Secured Notes and the payment price for the purchase of the Second Lien Secured Notes shall be equal to 100% of the aggregate principal amount of the Second
Lien Secured Notes (as reduced, dollar-for-dollar, by the aggregate principal amount of loans exchanged into Second Lien Secured Notes under the Bridge Loan Facility) and the Commitment Party shall pay, and Company directs such Commitment Party to
pay, the amounts indicated on Exhibit A and Exhibit B, as the commitment amounts (collectively, the “Commitment Amount”) of such Commitment Party to the Issuer in cash at Closing Date in satisfaction of the purchase price for
the First Lien Secured Notes and the Second Lien Secured Notes. 
 No failure by the Commitment Party to comply with any of its obligations
under this Commitment Letter shall prejudice the rights or obligations of any Other Commitment Party under Similar Commitment Letters, provided that the Commitment Party shall not be required to fund the Commitment of an Other Commitment Party in
the event that such Other Commitment Party fails to do so, but as discussed below, it may at its option do so, in whole or in part, in 

  

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which case the Commitment Party shall be entitled to all or a proportionate share, as the case may be, of the Commitment Fee (as defined below) that would otherwise be paid to the Other
Commitment Party that so fails to fund its Commitment. No portion of the Commitment Fee (including any portions theretofore paid, which portions shall be promptly refunded by the Commitment Party that fails to fund) shall be owed or paid to the
Commitment Party that fails to fund its Commitment. 
 There are and shall be no titles awarded to the Commitment Party or any Note Purchaser
(as defined below) and no fees shall be payable on account of the Commitment except as expressly provided otherwise herein. 
 In addition to
the Commitment described herein and subject to the terms, conditions and limitations set forth herein and in the Bridge Loan Term Sheet, the Commitment Party, to the extent it is one of the Commitment Parties identified on Exhibit F hereto (the
Commitment Party, if identified on Exhibit F (the “Bridge Commitment Schedule”), being the “Bridge Commitment Party”; the Other Commitment Parties identified on the Bridge Commitment Schedule are
referred to herein as “Other Bridge Commitment Parties”, and together with the Company are referred to herein as the “Bridge Commitment Parties”), is pleased to confirm its commitment to provide on the
“Bridge Loan Closing Date” (as such term is defined in the Bridge Loan Term Sheet) the principal amount of the Bridge Loan Facility specified for such Commitment Party on the Bridge Commitment Schedule (the “Bridge
Commitment”). As consideration for the Bridge Commitment Party’s Bridge Commitment and agreements hereunder with respect to the Bridge Commitment, the Company agrees to pay to the Bridge Commitment Party, for its own account, a
commitment fee equal to 3.0% of the aggregate principal amount of the Bridge Commitment Party’s Bridge Commitment (the “Bridge Loan Commitment Fee”), earned, in full, as of the date hereof and due and payable, in cash,
on the earlier to occur of (i) the Closing Date (as defined in the RSAs) and (ii) the Bridge Loan Closing Date. The Company agrees that, once paid, the Bridge Loan Commitment Fee or any part thereof will not be refundable under any circumstances. No
failure by the Bridge Commitment Party to comply with any of its obligations under this Commitment Letter shall prejudice the rights or obligations of any Other Bridge Commitment Party under Similar Commitment Letters, provided that the Bridge
Commitment Party shall not be required to fund the Bridge Commitment of an Other Bridge Commitment Party in the event that such Other Bridge Commitment Party fails to do so, but as discussed below, it may at its option do so, in whole or in part.
The following paragraphs of this Commitment Letter shall be applicable, mutatis mutandis, with respect to the Bridge Commitment as if each reference therein to the Commitment were a reference to the Bridge Commitment, each reference therein
to the Commitment Fee were a reference to the Bridge Loan Commitment Fee, each reference therein to the Commitment Party were a reference to the Bridge Commitment Party, each reference therein to the Commitment Parties were a reference to the Bridge
Commitment Parties, and each reference therein to the Secured Notes or the purchase and sale of the Secured Notes were a reference to the Bridge Loan Facility and the funding of the Bridge Loan Facility, respectively: paragraphs 4 (Information); 5
(Expenses); 6 (Confidentiality); 7(1) – (3) (Conditions to Commitment); 8 (Conduct of Business of the Company); 9 (Indemnification; Limitation of Liability; 10 (Termination; Survival); 11 (Limitation on Assignments; Funding Failure); 12
(Third Party Beneficiaries); 14 (Arm’s-Length Transaction); 15 (Additional Matters); 16 (Governing Law, etc.); 17 (Notices); and 18 

  

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(Counterparts, inclusive of the last paragraph of this Commitment Letter). The parties agree that this Commitment Letter includes all material terms for the funding of the Bridge Loan Commitment
by the Bridge Commitment Party and is intended to be a binding commitment for such funding effective as of the date hereof. 
 Except as
provided above under the “Termination; Survival” Section with respect to extensions of the Termination Date of this Commitment Letter, the Bridge Commitment and the Bridge Loan Term Sheet may not be amended or any term or provision hereof
waived or otherwise modified except by an instrument in writing signed by Company and the Bridge Commitment Parties holding more than 50% of the total Bridge Commitments (the “Majority Bridge Commitment Parties”),
provided that, (i) the Company’s and each of the relevant Bridge Commitment Parties’ consent (to the extent such Bridge Commitment Parties have a Bridge Commitment affected thereby) shall be required with respect to
(A) a decrease in the stated interest rate of the Bridge Loan Facility, (B) an extension of the maturity date of the Bridge Loan Facility, (C) a change in the prepayment premium or prepayment protection provision in a manner that is
adverse in any material respect to the Bridge Commitment Parties, (D) an increase in the principal amount of the Bridge Loan Facility in excess of $25 million, (E) a material reduction in the collateral or a material change in the priority
of the liens securing the Bridge Loan Facility, (F) to the extent affected, a change in the Bridge Commitment of any of such Bridge Commitment Parties, (G) an amendment to the definition of Majority Bridge Commitment Parties, (H) any
waiver or amendment to the assignability of this Commitment Letter in respect of the Bridge Commitment, (I) any modification, amendment or waiver of conditions 1 and 2 set forth under “Conditions to Commitment” or under
“Commitments” or (J) any amendment to clause (i) or (ii) of this proviso (together, the “Unanimous Bridge Closing Conditions”); and (ii) the consent of the Company and the Supermajority Bridge
Commitment Parties (as hereinafter defined) shall be required to modify, amend or waive any closing condition to the Bridge Loan Facility set forth herein, including under the “Conditions to Commitment” Section and Exhibit E hereto, other
than the Unanimous Closing Conditions, provided, however, that no such modification, amendment waiver or supplement shall adversely treat any of the Bridge Commitment Parties in a different manner than any other Bridge Commitment
Parties without first obtaining the consent of such adversely treated Bridge Commitment Parties. Except as set forth in the preceding provisions of this paragraph, no amendment, waiver or other modification of any term or provision of this
Commitment Letter or any Similar Commitment Letter, in each case in respect of the Bridge Commitment and the Bridge Loan Term Sheet, shall require the consent of any of the Bridge Commitment Parties other than the Majority Bridge Commitment Parties
or, if expressly required, the Supermajority Bridge Commitment Parties. “Supermajority Bridge Commitment Parties” shall mean the Bridge Commitment Parties holding commitments to provide more than 66-2/3% of the total
principal amount of the Bridge Loan Facility. 
 The closing of the Bridge Loan Facility, the issuance of the Secured Notes, the Exchange Offer
and entry into the New ABL Facility are referred to herein collectively as the “Transactions”. 
  

	2.	Placement of the Secured Notes 

  

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 The assignment by the Commitment Party of any portion of its Commitment is subject to the Section entitled
“Limitation on Assignments;” provided that, except as provided therein or if Company consents to novation (such consent not to be unreasonably withheld), no such assignment shall relieve the Commitment Party of all or any
portion of its obligations hereunder at any time prior to the funding of the Commitment Party’s Commitment. The Company has agreed that the Note Purchase Agreements (for the period ending on the date of the issuance of the Secured Notes) and
the indentures that will govern the Secured Notes (each, an “Indenture”) (as of and after the date of the issuance of the Secured Notes) will require the Issuer to deliver on and after the Closing Date any and all
documentation and information necessary to satisfy the requirements of Rule 144A(d)(4) promulgated under the Securities Act. Any future offers by the Commitment Party to potential purchasers of the Secured Notes must be to “qualified
institutional buyers” as defined in Rule 144A(a)(1) under the Securities Act, to persons who are not “U.S. persons” as defined in Rule 902(k) under the Securities Act or institutions that are “accredited investors” as
defined in Rule 501(A) under the Securities Act (“Note Purchasers”) and in each case, be subject to customary provisions of the Indenture to be part of the definitive documentation and otherwise in accordance with applicable
law. The Commitment Party hereby represents and warrants that it is acquiring the Secured Notes for its own account (or for accounts over which it exercises investment authority) and not with a view to distribution thereof. 

 

	3.	Commitment Fee 

 As consideration
for the Commitment Party’s Commitment and agreements hereunder with respect to the Commitment, the Company agrees to pay to the Commitment Party, for its own account, a commitment fee (“Commitment Fee”) equal to 2.0% in
aggregate in cash of the aggregate principal amount of such Commitment Party’s Commitment pursuant to the immediately following sentence herein. The Commitment Fee will be due and payable as follows: (i) 1% of the aggregate principal
amount of the Commitment Party’s Commitment due and payable on the date of execution and delivery of this letter agreement by the Company; and (ii) the remaining 1% of the aggregate principal amount of the Commitment Party’s
Commitment due and payable on the earlier to occur of (x) the Closing Date substantially concurrently with the funding of the full amount of such Commitment Party’s Commitment (or, if a portion of such Commitment in respect of Second Lien
Secured Notes represents amounts funded under the Bridge Loan Facility and converted to Second Lien Secured Notes on the Closing Date, the conversion of such Bridge Loan Facility amounts to Second Lien Secured Notes) and (y) the closing of any
Third Party Financing in lieu of the First Lien Secured Notes or the Second Lien Secured Notes, as applicable. The Company agrees that, once paid, the Commitment Fee or any part thereof payable hereunder will not be refundable under any
circumstances, except to the extent that a Commitment Party is a Defaulting Commitment Party. All fees payable hereunder will be paid when due in immediately available funds and shall not be subject to reduction by way of set off or counterclaim.

  

	4.	Information 

 Company agrees
promptly to prepare and provide to the Commitment Party all information with respect to the Company and its subsidiaries, the Transactions and the other transactions contemplated hereby, including all financial information, as the Commitment Party
may 

  

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reasonably request. The Company hereby represents (and it shall be a condition to the Commitment hereunder and agreement to perform the services described herein) that all written information
(other than projections with respect to the Company and its subsidiaries (the “Projections”) that have been or will be made available to Commitment Party and other forward looking statements and information of a general
economic or industry nature) (the “Information”) that has been or will be made available to the Commitment Party (or the representatives of the Commitment Parties) by the Company or any of the Company’s representatives
is or will be, when furnished, complete and correct in all material respects and does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
contained herein not materially misleading in light of the circumstances under which such statements are made, and the Projections and other forward looking information that have been or will be made available to the Commitment Party (or the
representatives of the Commitment Parties) by or on behalf of the Company or any of the Company’s representatives have been or will be prepared in good faith based upon accounting principles reasonably consistent with the historical audited
financial statements of the Company, as applicable, and upon assumptions that the Company believes to be reasonable at the time made and at the time the related Projections are made available to the Commitment Parties (or the representatives of the
Commitment Parties). The Company agrees that if at any time prior to the Closing Date any of the representations in the preceding sentence would be incorrect if the Information was being furnished, and such representation were being made, at such
time, then the Company will promptly supplement the Information so that such representations will be correct under those circumstances. In effectuating the Transactions, the Commitment Party will be entitled to use and rely primarily on the
Information without responsibility for independent verification thereof. 
  

	5.	Expenses 

 Company agrees to pay
all reasonable and documented out-of-pocket costs, fees and expenses of the Commitment Parties, including but not limited to due diligence expenses, and reasonable fees, costs and disbursements of Paul, Weiss, Rifkind, Wharton & Garrison
LLP (“Paul, Weiss”), K&L Gates, Houlihan Lokey plus any other specialty shipping advisors and other specialists incurred in connection with the Transactions as reasonably requested and engaged upon prior written consent
by the Company (with such consent not to be unreasonably withheld or delayed), regardless of whether such Transactions are consummated (without duplication of payments under the corresponding provisions of any of the Similar Commitment Letters). The
Company shall not be required to pay for costs, fees and expenses of individual legal counsel to any of the Commitment Parties except as described above. 
  

	6.	Confidentiality 

 This Commitment
Letter is delivered to the Company on the understanding that neither this Commitment Letter nor any of its terms or substance shall be disclosed, by Company or any of its subsidiaries, affiliates, or its or their directors, officers, affiliates,
partners, employees, agents, advisors or other representatives, including, without limitation, attorneys, accountants, consultants, bankers, financial advisers and any representatives of such advisors, directly or indirectly, to any other person
except (i) to (A) the persons parties to the Similar Commitment Letters, the RSAs and their employees, attorneys, accountants, agents, advisors and other 

  

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representatives who need to know such information and are informed of the confidential nature of such information and such attorneys, accountants, agents, advisors and other representatives that
are or have been advised of their obligation to keep information of this type confidential and (B) the Company’s and its subsidiaries’ respective directors, officers, employees, attorneys, accountants, agents, advisors and other
representatives who are informed of the confidential nature of such information and such attorneys, accountants, agents, advisors and other representatives that are or have been advised of their obligation to keep information of this type
confidential, (ii) in any legal, judicial, administrative or other regulatory proceeding or as otherwise required by law or regulation or as requested by a governmental or regulatory authority (in which case Company agrees, to the extent
permitted by law, to inform the Commitment Parties promptly in advance thereof), (iii) to the arrangers and providers of the New ABL Facility, and (iv) the existence and contents of this Commitment Letter may be disclosed in any prospectus
or offering memorandum relating to the Secured Notes or in connection with any public filing requirement, provided, however, that in respect of the disclosure under this subclause (iv) only, the breakdown of the amount of any
Commitment Party’s Commitment set forth on Exhibit A and Exhibit B hereto shall not be disclosed by Company or any of its subsidiaries, affiliates, or its or their directors, officers, affiliates, partners, employees, agents, advisors or other
representatives including, without limitation, attorneys, accountants, consultants, bankers, financial advisers and any representatives of such advisors, directly or indirectly, to any third party. 

The Commitment Party shall use all nonpublic information received by it in connection with its Commitment and the Transactions solely in connection with
the Commitment, the investment contemplated by this Commitment Letter or in connection with the Transactions and in compliance with securities laws and regulations and shall treat confidentially all such information and the terms and contents of
this Commitment Letter; provided, however, that nothing herein shall prevent the Commitment Party from disclosing any such information (i) in any legal, judicial, administrative or other regulatory proceeding or otherwise as
required by applicable law or regulation, (ii) to the persons party to the RSAs, (iii) upon the request or demand of any governmental or regulatory authority having jurisdiction over such Commitment Party or its affiliates (in which case
such Commitment Party shall notify Company as soon as reasonably practicable if such notification does not violate the terms of such request or demand or applicable law), (iv) to the employees, legal counsel, independent auditors, professionals
and other experts or agents of the Commitment Party who need to know such information and are informed of the confidential nature of such information and are or have been advised of their obligation to keep information of this type confidential,
(v) to any of its affiliates solely in connection with the Commitment and the related transactions (provided that such affiliate is advised of its obligation to retain such information as confidential, and the Commitment Party shall be
responsible for their affiliates’ compliance with this paragraph), (vi) to the extent any such information becomes publicly available other than by reason of disclosure by the Commitment Party in breach of this Commitment Letter or from a
source not known by the Commitment Party (or not known by the Commitment Party to be bound by confidentiality obligations to the Issuer), and (vii) to the extent applicable, and only in respect of the information received in connection with the
Commitment, for purposes of establishing a “due diligence” defense. 

  

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 Not later than the end of the first business day following the occurrence of (x) the Closing Date or
(y) the Termination Date (as defined herein), whichever is earlier, in each case, the Company shall take such steps as are necessary, which may include the furnishing of a Current Report on Form 8-K with the Securities and Exchange Commission,
to make public all material non-public information under the federal securities laws with respect to the Company or its securities provided to the Commitment Party hereunder (“Material Non-Public Information”). In the event
that (i) the Company fails to timely disclose publicly the Material Non-Public Information or (ii) the Commitment Party believes in its good-faith judgment and upon advice of counsel that notwithstanding any such disclosure the Commitment
Party still possesses Material Non-Public Information, the Commitment Party shall be permitted to disclose publicly any such Evaluation Materials that it determines might reasonably be considered to be Material Non-Public Information (but not
including any proprietary information with respect to pricing or any customer information, provided that such information shall not restrict the Commitment Party after the Termination Date) without incurring any liability to the Company;
provided, however, that the Company shall be afforded 2 business days’ prior written notice of the intent of the Commitment Party and each of its affiliates and each of the respective officers, directors, partners, trustees,
employees, affiliates, stockholders, advisors, managers, owners, partners, agents, attorneys-in-fact, representatives and controlling persons of each of the foregoing to disclose such Material Non-Public Information and the form of such proposed
disclosure. 
  

	7.	Conditions to Commitment 

 The
funding of the Commitment of the Commitment Party is subject solely to the following conditions precedent: 
  

	 	1.	The RSA of the Commitment Party shall not have been terminated pursuant to Section 5 (Termination) thereof; 

 

	 	2.	The Commitment Party shall have not discovered or otherwise became aware of any information not previously disclosed to it that is inconsistent in a material and
adverse manner with the information provided to it prior to the date hereof, in respect of the business, assets, liabilities, operations, condition (financial or otherwise), operating results, projections or prospects of the Company and its
subsidiaries, taken as a whole; 

  

	 	3.	The Commitment Fee shall have been paid to the Commitment Party when due, as set forth in the “Commitment Fee” Section hereunder; and

  

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	 	4.	The legal and documentary conditions described on Exhibit G and the other conditions set forth herein shall, subject to the “Amendment” Section set forth
below or Section 16 (Amendments) of the RSA, as applicable, have been satisfied. 

 Company shall work in good faith with the
Commitment Party to prepare and agree on the forms of all definitive documentation relating to its investment as promptly as practicable, in each case on terms consistent with this Commitment Letter and the RSAs and otherwise mutually reasonably
acceptable to the Borrower and the Commitment Party. The parties agree that this Commitment Letter and the RSA include all material terms for the purchase of the Secured Notes by the Commitment Party and is intended to be a binding commitment for
purchase effective as of the date hereof. 
  

	8.	Conduct of Business of the Company.  

 From the date hereof until the Closing Date, the Company shall, and shall cause each of its subsidiaries to, other than actions in furtherance of the Restructuring, conduct its domestic business and
operations in the ordinary course of business consistent with past practice and use commercially reasonable efforts to (i) preserve intact its present business organization, (ii) keep available the services of its directors, officers and
key employees, (iii) maintain good relationships with its customers, suppliers, lenders and others having material business relationships with it and (iv) manage its working capital (including the timing of collection of accounts
receivable and of the payment of accounts payable and the management of inventory) in the ordinary course of business. 
  

	9.	Indemnification; Limitation of Liability 

 Company hereby agrees to indemnify and hold harmless the Commitment Party and each of its affiliates and each of their respective officers, directors, partners, trustees employees, affiliates,
stockholders, advisors, managers, owners, partners, agents, attorneys-in-fact, representatives and controlling persons of each of the foregoing (each, an “Indemnified Person”) from and against any and all losses, claims,
damages, liabilities and costs and expenses (including, without limitation, reasonable and documented fees and disbursements of outside counsel and advisors but excluding in any event lost profit or claims therefor)
(“Losses”) to which any such Indemnified Person may become subject, arising out of or in connection with or relating to this Commitment Letter, the Transactions or the transaction documents and the transactions contemplated
thereby, or any breach by Company of this Commitment Letter, the Transactions, or the transaction documents and the transactions contemplated thereby, or any claim, suit, litigation, investigation, action or proceeding (each, a
“Claim”) relating thereto, regardless of whether any Indemnified Person is a party thereto or whether such Claim is brought by Company, any of its affiliates or a third party, and to reimburse each Indemnified Person upon
demand for all legal and other expenses reasonably incurred by it in connection with investigating, preparing to defend or defending, or providing evidence in or preparing to serve or serving as a witness with respect to, any Claim relating to the
foregoing (including, without 

  

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limitation, in connection with the enforcement of the indemnification obligations set forth in this Section), irrespective of whether the Commitments or any other Transactions contemplated by the
Restructuring are consummated; provided, however, that no Indemnified Person will be entitled to indemnity hereunder in respect of any Loss to the extent that it is found by a final, non-appealable judgment of a court of competent
jurisdiction that such Loss resulted from (i) the bad faith, gross negligence or willful misconduct of such Indemnified Person or its affiliates or any of their respective officers, directors, partners, trustees employees, affiliates,
stockholders, advisors, managers, owners, partners, agents, attorneys-in-fact, representatives or controlling persons (such persons in respect of an Indemnified Person, such Indemnified Person’s “Related Persons”) or
(ii) any material breach of this Commitment Letter by such Indemnified Person. 
 In no event will the Commitment Party or any of its
affiliates or any of their respective officers, directors, partners, trustees, employees, affiliates, stockholders, advisors, managers owners, partners, agents, attorneys in fact, representatives or controlling persons be liable for consequential,
indirect, punitive or special damages as a result of any failure to purchase the Secured Notes or otherwise in connection with the Transactions contemplated by this Commitment Letter and the Restructuring. Except in the case of gross negligence,
willful misconduct or bad faith of such person or such person’s Related Persons, no such person will be liable for any damages arising from the use by unauthorized persons of any written information, any financial projections or any other
materials sent through electronic, telecommunications or other information transmission systems. 
  

	10.	Termination; Survival 

 The
Commitment Party’s Commitment and all other obligations under this Commitment Letter will be terminated upon the earliest of (i) the termination of this Commitment Letter by mutual consent of the Supermajority Commitment Parties (as
defined below) and the Company; (ii) the failure by the Company or any of its subsidiaries to perform their material obligations under the Commitment Letter (with any failure to perform remaining uncured after three days of a responsible
officer of the Company’s knowledge thereof); (iii) the date of termination or expiration, in each case in their entirety, of any RSA, in accordance with its terms (or if any RSA is determined to be unenforceable by a final non-appealable
order of a court of competent jurisdiction); (iv) September 30, 2011 or such later date to which such deadline is extended; and (v) the date on which each of the following events described in clauses (A) through (E) have
occurred; (A) any of the Commitment Parties shall have failed to fund or provide adequate assurances of its readiness to fund or repudiated in writing its obligation to fund gross cash proceeds equal to the dollar amount of its Commitment (the
amount of such deficit, the “Commitment Default Amount”), (B) such breach or anticipatory breach of this Commitment Letter or the Similar Commitment Letters has not been remedied through the exercise of rights provided
in this Commitment Letter or otherwise, (C) some or all of the Other Commitment Parties shall have been provided at least five days’ prior written notice of their right to increase their respective commitments under the Similar Commitment
Letters and/or to assume the applicable commitment of such Defaulting Commitment Party and the aggregate amount of commitment increases and/or assumptions (if any) which such Commitment Parties shall have offered to commit to provide (in their
respective sole discretion) shall be less than the Commitment Default Amount (the amount of such deficit, the “Funding Gap Amount”), (D) the aggregate amount (if any) of the applicable commitments of such Defaulting
Commitment Party 

  

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assumed by any other entity shall be less than the Funding Gap Amount and (E) Company shall have provided written notice to each of the Commitment Parties terminating this Commitment Letter
and the Similar Commitment Letters (any such date, the “Termination Date”). 
 This Section entitled “Termination;
Survival” may at any time (whether before or after its scheduled expiration or termination in accordance with its terms) be amended by an instrument in writing signed by Company and the Supermajority Commitment Parties to extend the Termination
Date if it would otherwise terminate pursuant to clauses (ii), (iii), (iv) or (v) of the preceding paragraph, for one or more consecutive 10 day periods; provided that in no event shall the date in clause (iv) of the first sentence of the
preceding paragraph be extended past December 31, 2011 without the consent of each Commitment Party. 
 There shall be no liability for
indirect, special, punitive or consequential damages in connection with activities related to the Transactions under this Commitment Letter on the part of any Commitment Party or Company or any of its subsidiaries. The following Sections shall
remain in full force and effect until the execution and delivery of Definitive Documentation (as defined on Exhibit G): “Confidentiality;” “Termination; Survival;” “Expenses;” “Indemnification; Limitation of
Liability;” “Specific Performance;” and “Additional Matters.” 
 “Supermajority Commitment
Parties” shall mean the Commitment Parties holding commitments to provide more than 66-2/3% of the total principal amount of the Secured Notes. 
  

	11.	Limitation on Assignments; Funding Failure 

 This Commitment Letter is not assignable by the Company without the prior written consent of the Commitment Parties. The Commitment Party may assign its Commitment hereunder to, in whole or in part, to
any of its affiliates or to any fund or account managed or advised by the Commitment Party or the Commitment Party’s investment advisor, provided, however that no such assignment shall release the Commitment Party from its
obligations to Company hereunder unless Company has given its prior written consent to such assignment and such assignee has assumed in writing all obligations of the Commitment Party hereunder. Any purported assignment made other than in accordance
with this paragraph shall be null and void. 
 Notwithstanding any other provision of this Commitment Letter, in the event a deficit arises from
the failure of any of the Commitment Parties (a “Defaulting Commitment Party”) to fund or provide adequate assurances of its readiness to fund its Commitment on the Closing Date and such failure is not otherwise remedied
(whether through the exercise of specific performance rights provided herein or otherwise), Company shall have the right to require the Defaulting Commitment Party to assign its Commitment to either (i) another of the Commitment Parties (with
the consent of each of such Commitment Parties who is the assignee of such Commitment) or (ii) another entity that assumes in writing all of such Commitment hereunder. For the avoidance of doubt, Company may pay to such assignee such fees or
other consideration as it determines appropriate in consideration for such assignment. 
  

	12.	Third Party Beneficiaries 

 This
Commitment Letter is intended to be solely for the benefit of the parties hereto, the Indemnified Parties, and their respective successors and assigns. Nothing herein, express or implied, is intended to or shall confer upon any other third party any
legal or equitable right, 

  

- 11 - 

 benefit, standing or remedy of any nature whatsoever under or by reason of this Commitment Letter.

  

	13.	Amendment 

 Except as provided
above under the “Termination; Survival” Section with respect to extensions of the Termination Date of this Commitment Letter, this Commitment Letter may not be amended or any term or provision hereof waived or otherwise modified except by
an instrument in writing signed by Company and the Commitment Parties holding more than 50% of the total Commitments (the “Majority Commitment Parties”), provided that, (i) the Company’s and each of
the relevant Commitment Parties’ consent (to the extent such Commitment Parties have a Commitment affected thereby) shall be required with respect to (A) a decrease in the stated interest rate of the Secured Notes, (B) an extension of
the maturity date of the Secured Notes, (C) a change in the prepayment premium or prepayment protection provision in a manner that is adverse in any material respect to the Commitment Parties, (D) an increase in the principal amount of the
Secured Notes in excess of $225 million for the First Lien Secured Notes and $100 million for the Second Lien Secured Notes, (E) an increase in the commitments under the New ABL Facility in excess of $125 million, (F) a material reduction
in the collateral or a material change in the priority of the liens securing the Secured Notes, (G) to the extent affected, a change in the Commitment Amount of any of such Commitment Parties, (H) an amendment to the definition of Majority
Commitment Parties or Supermajority Commitment Parties, (I) any waiver or amendment to the assignability of this Commitment Letter in respect of the Commitments, (J) any modification, amendment or waiver of the conditions set forth under
“Conditions to Commitment”, the 1st condition (“Exchange Offer, New ABL Facility”) set forth on Exhibit G, the 3rd condition (“Absence of Defaults”) set forth on Exhibit G with respect to a default in respect of
covenants to be included in the Note Purchase Agreements as set forth above under “Commitments” Section or the 22nd condition (“Information Verification”) set forth on Exhibit G, (K) any amendment to clause (i), (ii) or
(iii) of this proviso to the Section “Amendment” (together, the “Unanimous Closing Conditions”); (ii) except as specifically set forth therein, the consent of Company and Supermajority Commitment Parties
shall be required with respect to any amendments to the “Termination; Survival” Section; and (iii) the consent of the Company and the Supermajority Commitment Parties shall be required to modify, amend or waive any closing condition
set forth herein, including under “Conditions to Commitment” and Exhibit G hereto, other than the Unanimous Closing Conditions, provided, however, that no such modification, amendment waiver or supplement shall adversely
treat any of the Commitment Parties in a different manner than any other Commitment Parties without first obtaining the consent of such adversely treated Commitment Parties. Except as set forth in the preceding provisions of this paragraph, no
amendment, waiver or other modification of any term or provision of this Commitment Letter or any Similar Commitment Letter shall require the consent of any of the Commitment Parties other than the Majority Commitment Parties or, if expressly
required, the Supermajority Commitment Parties. 
  

	14.	Arm’s-Length Transaction 

 In
connection with all aspects of each transaction contemplated by this Commitment Letter, the Company acknowledges and agrees that: (i) the Commitments and any other transactions described in this Commitment Letter are arm’s-length
commercial transactions between the 

  

- 12 - 

 
Company and its subsidiaries, on the one hand, and the Commitment Parties, on the other hand, and the Company is capable of evaluating and understanding and does understand and accept the terms,
risks and conditions of the transactions contemplated by this Commitment Letter; (ii) in connection with the process leading to such transactions, the Commitment Parties are and have been acting solely as principals and are not the financial
advisors or fiduciaries for the Company or any of its subsidiaries or their respective affiliates, or stockholders, creditors (other than each Commitment Party itself) or employees or any other party; (iii) the Commitment Parties have not
assumed nor will they assume an advisory or fiduciary responsibility in the Company’s or any of its subsidiary’s or their respective affiliates’ favor with respect to any of the transactions contemplated hereby or the process leading
thereto (irrespective of whether the Commitment Parties have advised or are currently advising the Company or any of its subsidiaries or their respective affiliates on other matters) and the Commitment Parties have no obligation to the Company or
any of its subsidiaries or their respective affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth in this Commitment Letter and the other documents relating to the Transactions; (iv) the
Commitment Parties and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from the Company’s and its subsidiaries’ and their respective affiliates’ interests and the
Commitment Parties have no obligation to disclose any of such interests by virtue of their execution, delivery and performance of this Commitment Letter or any advisory, agency or fiduciary relationship; and (v) the Commitment Parties have not
provided any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent the Company has deemed
appropriate. The Company, on behalf of itself and its subsidiaries, hereby waives and releases, to the fullest extent permitted by law, any claims that the Company or any of its subsidiary may have against the Commitment Parties with respect to any
breach or alleged breach of fiduciary duty with respect to the transactions contemplated hereby. 
  

	15.	Additional Matters 

 The Commitment
Party hereby notifies the Company that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), the Commitment Party and each
Note Purchaser may be required to obtain, verify and record information that identifies the Issuer and each of the Guarantors, which information includes the name and address of the Issuer and each of the Guarantors and other information that will
allow the Commitment Party and each Note Purchaser to identify the Issuer and each of the Guarantors in accordance with the Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and is effective for the Commitment
Party and each Note Purchaser. 
  

	16.	Governing Law, etc. 

 Each party
hereto agrees for itself and its affiliates that any suit or proceeding arising in respect to this Commitment Letter or the purchase and sale of the Secured Notes contemplated hereby may be tried exclusively in the U.S. District Court for the
Southern District of New York, or if that court does not have subject matter jurisdiction, in any state court located in the City and County of New York; and each party hereto agrees for itself and its affiliates to submit to the exclusive
jurisdiction of, and to venue in, such courts. Any right to trial by jury with respect to 

  

- 13 - 

 
any action or proceeding arising in connection with, or as a result of, this Commitment Letter or the purchase and sale of the Secured Notes contemplated hereby is hereby waived by the parties
hereto. This Commitment Letter shall be governed by and construed in accordance with the laws of the State of New York without regard to such state’s choice of law provisions which would require the application of the law of any other
jurisdiction. 
  

	17.	Notices 

 All notices, requests and
other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally or by electronic mail transmission with first class mail confirmation to the parties at the following addresses or email
addresses: 
 If to the Company: 
 Horizon Lines, Inc. 
 Michael T. Avara 

4064 Colony Road, Suite 200 
 Charlotte, North Carolina 28211 
 with a copy to (which shall not constitute
notice): 
 Edward O. Sassower 
 Joshua A. Sussberg 
 Kirkland & Ellis LLP 

601 Lexington Avenue 
 New York, New York 10022 
 If to the Commitment Party: 

To the addresses and email addresses set forth on the signature 

pages hereto. 

with a copy to (which shall not constitute notice): 
 Andrew N. Rosenberg 
 Paul, Weiss, Rifkind, Wharton & Garrison LLP

 1285 Avenue of the Americas 
 New York, New York 10019 
  

	18.	Counterparts 

 This Commitment
Letter may be executed in any number of counterparts, each of which when executed will be an original, and all of which, when taken together, will constitute one agreement. Delivery of an executed counterpart of a signature page of this Commitment
Letter by facsimile transmission or electronic transmission (in .pdf format) will be effective as delivery of a manually executed counterpart hereof. This Commitment Letter is the only agreement (other than the RSAs) that has been entered into among
the parties hereto with respect to the 

  

- 14 - 

 
Secured Notes and sets forth the entire understanding of the parties with respect thereto and supersedes any prior written or oral agreements among the parties hereto (other than the RSAs) with
respect to the Secured Notes. 

  

- 15 - 

 Please confirm that the foregoing is in accordance with the Company’s understanding by signing and
returning to the Commitment Party the enclosed copy of this Commitment Letter, on or before noon (New York time) on August 26, 2011, whereupon this Commitment Letter will become binding between the Commitment Party and the Company. If
(x) this Commitment Letter has not been signed and returned as described in the preceding sentence by such date or (y) Similar Commitment Letters have not been signed by the Other Commitment Parties which (together with this Commitment
Letter) provide for commitments for the purchase of all of the Secured Notes set forth on Exhibit A and B, this offer will terminate on such date. 
  

			
	Very truly yours,
	
	 [COMMITMENT PARTY]
 on behalf of certain funds and/or accounts that it manages and/or advises

		
	By:	 	 

			
	 Name:
	 	
	 Title:
	 	

 ACCEPTED AND AGREED AS OF AUGUST     , 2011: 

HORIZON LINES, INC. 
  

			
		
	By:	 	 

			
	 Name:
	 	
	 Title:
	 	

  

- 16 - 

 Exhibit A 

ALLOCATION OF FIRST LIEN SECURED NOTES 
  

									
	 Commitment Party
	  	Total Principal Amount of
First Lien Secured Notes
to be Purchased
by Commitment
Party	 	  	Percentage of Total
Principal Amount of First
Lien Secured Notes to be
Purchased
by
Commitment Party	 
		  	$	[x]	  	  	 	[x	]% 
	 Total
	  	$	225,000,000	  	  	 	100	% 

 Exhibit B 

ALLOCATION OF SECOND LIEN SECURED NOTES 
  

									
	 Commitment Party
	  	Total Principal Amount of
Second Lien Secured
Notes to be Purchased
by Commitment
Party	 	 	Percentage of
Total
Principal Amount of
Second Lien Secured
Notes to be Purchased by
Commitment Party	 
		  	$	[x	] 	 	 	[x	]% 
	 Total
	  	$	100,000,000	  	 	 	100	% 

  

 Exhibit E 

Summary of Terms for $25,000,000 Bridge Loan Facility 
 This term sheet (the “Term Sheet”) sets forth certain of the principal terms of a new $25 million term loan, to be provided pursuant to a credit agreement substantially in the form
(subject to the exceptions described herein) of that certain Credit Agreement dated as of August 8, 2007 (as amended, modified, extended, restated, replaced or supplemented from time to time (the “Wells Fargo Credit
Agreement”)) among Horizon Lines, Inc. (the “Company” or “Borrower”), the subsidiaries of the Borrower as may from time to time become a party thereto (collectively, the
“Guarantors”), the lenders and financial institutions from time to time party thereto and Wells Fargo Bank, N.A. (successor-by-merger to Wachovia Bank, National Association), as administrative agent (in such capacity, the
“Administrative Agent”), being committed to by certain holders of the Company’s 4.25% Convertible Senior Notes in connection with the broader restructuring (the “Restructuring”), as described in
the Restructuring Support Agreements dated as of June 1, 2011, as amended (as may be further amended, modified or supplemented from time to time, each, an “RSA” and collectively, the “RSAs”) by
and between the Company and its subsidiaries and the holders set forth on the respective signature pages of each RSA. 
 This Term Sheet does
not include a description of all of the terms, conditions and other provisions that are to be contained in the definitive documentation governing such matters. Capitalized terms used herein but not otherwise defined shall have the meanings given to
them in the Wells Fargo Credit Agreement. 
  

			
	DESCRIPTION:	  	 New credit agreement (the “Credit Agreement”) substantially in the form of the Wells Fargo Credit Agreement but
with exceptions to be mutually agreed upon (but in any event excluding the Credit Agreement’s financial covenants and not more restrictive on the Company and its subsidiaries in any material respect (except as specified herein) than the
corresponding provisions of the Wells Fargo Credit Agreement). Pursuant to the Credit Agreement, the Bridge Loan Lenders (defined below) shall fund on the Bridge Loan Closing Date (defined below) into the Escrow Account (defined below) $25,000,000
in the aggregate (the “Committed Amount”), to be made available to the Borrower in the form of term loans (each, a “Bridge Loan”) on the Bridge Loan Closing Date and from time to time thereafter upon
request by the Borrower pursuant to the terms and conditions described herein (the “Bridge Loan Facility”).
  

The cash proceeds of the Bridge Loan, to the extent not utilized on the Bridge Loan Closing Date, shall not be funded as loans to the Borrower but instead
shall be deposited in the escrow account (the “Escrow Account”) maintained by the administrative agent for the Bridge Loan Facility (in such capacity, the “Agent”, which shall be a
financial institution proposed by the Bridge Loan Lenders (as defined below), in any case reasonably satisfactory to the Company). Any proceeds maintained in such Escrow Account shall not constitute property of the Borrower and shall not constitute
collateral securing any obligations under the Wells

  
 E-1

			
		  	Fargo Credit Agreement. The arrangements and expenses for establishment of such Escrow Account shall be reasonably satisfactory to the Bridge Loan Lenders. Any disbursements from
the Escrow Account shall constitute Bridge Loans under the Credit Agreement. In order to receive the Bridge Loans (which shall be released from the Escrow Account upon the date of receipt of a conforming certificate), the Company shall deliver to
the Agent a certificate from a responsible officer, certifying that (i) all conditions precedent to an extension of Bridge Loans made on or after the Bridge Loan Closing Date set forth in the Credit Agreement shall be satisfied as of the date of
such request (which conditions precedent shall be limited to satisfaction as of such date of the condition set forth below regarding the RSAs not being terminated, absence of a MAC (as defined in the RSAs), no defaults under the Credit Agreement,
and delivery of an officers certificate with a customary “bring down of representations and warranties), (ii) except in the case of Bridge Loans being applied for the purposes described in (iii)(c) below, as of such date, no (or insufficient)
revolving loans are available under the Wells Fargo Credit Agreement, and (iii) the proceeds of the Bridge Loans shall, within one business day, be used by the Company for payment of (a) costs and expenses in connection with actions described and
agreed to by the Exchanging Holders or their representative prior to the date of the Commitment Letter to which this Exhibit E is attached, (b) working capital needs of the Company caused by any unexpected material adverse changes in vendor terms,
(c) fees and expenses (including interest expense under the Bridge Loans and as contemplated by the RSAs and the Commitment Letter) relating to the Bridge Loan Facility and the Restructuring, (d) payment of settlement expenses previously disclosed,
and/or (e) other ordinary course business expenses that are incurred.
		
	AGENT	  	Cantor Fitzgerald Securities
		
	BORROWER AND GUARANTORS:	  	Same as Wells Fargo Credit Agreement (collectively, the “Credit Parties”).
		
	BRIDGE LOAN TERM LENDERS:	  	Certain Exchanging Holders (collectively, the “Bridge Loan Lenders”).
		
	SECURITY:	  	The Bridge Loan and the guaranties thereof will be secured by a second priority perfected security interest in the same collateral securing all Loans and Credit Party Obligations
under the Wells Fargo Credit Agreement (with exceptions to permit actions required to perfect security interests on collateral that cannot be perfected by the filing of UCC financing statements to be completed within 30 days of the Bridge Loan
Closing Date if such

  
 E-2

			
		  	security interests cannot be perfected prior to the Bridge Loan Closing Date after the exercise of commercially reasonable efforts).
		
	INTEREST RATES:	  	 The interest rate applicable to the Committed Amount and outstanding Bridge Loans shall be 15% per annum, payable on the last business
day of each month, in arrears.
 Default interest of 2%, payable upon the occurrence and during the continuance of an event of default, on
demand.

		
	BRIDGE LOAN CLOSING DATE:	  	August 26, 2011 (subject to launch of the exchange offer contemplated by the Transactions as such term is defined in Summary of Proposed Terms and Conditions dated August 26, 2011
(the “Restructuring Term Sheet”) relating to certain proposed restructuring transactions for the Company.
		
	FEES TO BRIDGE LOAN LENDERS:	  	An upfront fee of 3% of the aggregate principal amount of the Bridge Loan shall be earned as of the date hereof and payable, in cash, on the earlier to occur of (i) the Closing Date
(as defined in the RSAs) and (ii) the Bridge Loan Closing Date (as defined in this Term Sheet).
		
	MATURITY DATE:	  	One hundred twenty (120) days from the Bridge Loan Closing Date, except that the Bridge Loan shall mature upon the closing of the Transactions, and the Credit Agreement shall
provide that upon such maturity the principal amount of the Bridge Loan and any amounts in the Escrow Account not theretofore funded to the Borrower (which on such date shall be released from the Escrow Account and funded to the Borrower) will be
exchanged for $25 million in “Second Lien Secured Notes” (as defined in the Restructuring Term Sheet)).
		
	AMORTIZATION:	  	None.
		
	REPRESENTATIONS AND WARRANTIES; COVENANTS:	  	Substantially similar to those in the Wells Fargo Credit Agreement, subject to agreed upon exceptions (excluding any financial covenants).
		
	 OTHER
 MODIFICATIONS
FROM WELLS FARGO CREDIT AGREEMENT:
	  	 To be agreed, including the following: 
  

Events of Default: modifications as agreed, including the following “Restructuring Events of Default”: (i) Company’s
breach of any of its material obligations under each RSA and the Restructuring Term Sheet incorporated therein; or (ii) Company’s failure to issue the First Lien Secured Notes and the Second Lien Secured Notes (each as defined in the RSA) and
close the Exchange Offer, each on terms and conditions described in the

  
 E-3

			
		  	RSA, by September 30, 2011 or such later date to which such deadline is extended pursuant to the RSAs.
		
	INTERCREDITOR AGREEMENT:	  	Terms of an intercreditor agreement (subordinating the liens under the Bridge Loan Facility to the liens securing the Wells Fargo Credit Agreement obligations) to be mutually agreed
upon by the parties and the lenders under the Wells Fargo Credit Agreement.
		
	CLOSING DATE CONDITIONS PRECEDENT:	  	 •     No default or event of default under the Credit Agreement
or any of the other definitive loan documents (collectively, the “Credit Documents”) for the Bridge Loan Facility shall have occurred and be continuing.

 
 •     The
representations and warranties of the Credit Parties shall be true and correct in all material respects immediately prior to, and after giving effect to, funding on the Bridge Loan Closing Date, except to the extent that any such representation or
warranty expressly relates only to an earlier date, such representation or warranty shall only be true and correct in all material respects as of such earlier date.
  

•     The making of the Bridge Loan shall not violate any requirement of applicable
law and shall not be enjoined, temporarily, preliminarily or permanently.
  
 •     Borrower shall have delivered a timely borrowing notice, requesting funding of the Bridge Loan.

 
 •     Any
necessary amendments to the Wells Fargo Credit Agreement shall have been executed.
  
 •     Borrower shall have taken such action as necessary to perfect the security interests under the Bridge Loan Facility, including with respect to the Vessel Fleet
Mortgage, subject to the qualifications set forth above under the heading “Security”.
  

•     The Credit Parties shall have (i) delivered an updated Perfection Certificate
and updated schedules to the Security Documents (with exceptions to permit agreed upon deliveries consistent with the description set forth above under the heading “Security” to be completed within a period following the Bridge Loan
Closing Date to be mutually agreed), (ii) delivered legal opinions customary

  
 E-4

			
		  	 for a financing of this type and (iii) satisfied other customary closing conditions.

 
 •     The RSA
of the Bridge Commitment Party shall have been executed and shall not have been terminated pursuant to Section 5 (Termination) thereof.
  

•     The Borrower shall have paid all reasonable unpaid fees and expenses of Paul,
Weiss, Rifkind, Wharton & Garrison LLP and K&L Gates plus any reasonable and documented fees (to the extent customary and agreed to in writing by the Borrower) and out-of-pocket costs of the Agent.

 
 •     The
exchange offer contemplated by the Transactions shall have been commenced concurrently with the closing.
  

•     Notwithstanding anything to the contrary herein, none of the events or items
referenced on Schedule I to the Secured Notes Commitment Letter to which this Exhibit E is attached shall result in failure to satisfy any condition precedent to the Bridge Loan Closing Date.

		
	GOVERNING LAW:	  	New York governing law and consent to exclusive New York jurisdiction.

  
 E-5

 Exhibit F 

ALLOCATION OF BRIDGE LOAN COMMITMENTS 
  

									
	 Commitment Party
	  	Total Principal Amount
of Bridge Loan Commitment	 	 	Percentage of
Total Amount
of Bridge
Loan Commitment	 
		  	$	[X	] 	 	 	[X	]% 
	 Total
	  	$	25,000,000	  	 	 	100	% 

 Exhibit G 

Legal and Documentary Conditions 

In addition to the conditions described in the body of the Commitment Letter, the obligations of each Commitment Party under the Commitment Letter to
fund its Commitment with respect to the Secured Notes are subject to the satisfaction or waiver (in accordance with the “Amendments” Section thereof) of the following additional conditions precedent (capitalized terms used and not
otherwise defined in this Exhibit G have the meanings given to them in the Commitment Letter or Exhibit C and D, as applicable): 
 1.
Exchange Offer, New ABL Facility. The Exchange Offer and entry into the New ABL Facility shall be consummated pursuant to the RSAs substantially simultaneously with the purchase of the Secured Notes and no provision thereof shall have
been amended or waived (and, in the case of the New ABL Facility, no consent to deviation from the requirements thereof shall have been granted by the lenders thereunder), in each case, in any material respect adverse to the Commitment Parties,
solely in their capacity as providers of their respective Commitment. 
 2. Financing Terms. The terms of the Secured Notes, the
terms and conditions of the Convertible Secured Notes and the New ABL Facility (including but not limited to terms and conditions relating to the interest rate, fees, amortization, maturity, subordination, covenants, events of default and remedies),
shall be consistent in all material respects with the terms set forth herein and in the RSAs and otherwise reasonably satisfactory in all respects to the Commitment Parties. 
 3. Absence of Defaults. There shall not exist any default or event of default on the Closing Date under the Indenture after giving effect to the use of the proceeds of the Secured Notes.
There shall not exist any default or event of default on the Closing Date under the Note Purchase Agreements. 
 4. Trustees. The
trustee under the indenture governing the First Lien Secured Notes, the trustee under the indenture governing the Second Lien Secured Notes and the trustee under the indenture governing the Convertible Secured Notes shall not have taken action that
would reasonably be expected to adversely affect (in any material respect) the consummation of any of the Transactions on the Closing Date and shall have taken no action that challenges the validity or effectiveness of the procedures used by the
Company in the making the Exchange Offer or the Consent Solicitation. 
 5. Definitive Documentation; Customary Closing Documents.
The parties shall have executed and delivered (or be willing to execute and deliver) for the First Lien Secured Notes and the Second Lien Secured Notes (a) the respective Note Purchase Agreements, containing a 10b-5 representation in connection
with any transaction contemplated by the Restructuring, including the Exchange Offer, as to the information contained in the S-4 registration statement filed, and agreed upon indemnities plus other terms, consistent in all material respects with
this Commitment Letter, by and among the Issuer and the other parties thereto (including a representation by each purchaser thereunder that it is either a “qualified institutional buyer” or an institution that is an “accredited
investor” (each as defined in the Security Act)), except that as the Commitment Parties are not underwriters, there shall be no requirement for an offering memorandum or other offering documentation beyond the documentation and information
necessary to satisfy the requirements of Rule 144A(d)(4) 

  
 G-1

 
promulgated under the Securities Act; (b) the indenture governing the First Lien Secured Notes consistent with the terms set forth in Exhibit C and otherwise containing customary terms for
the First Lien Secured Notes issued in a private placement and eligible for resale on a “144A-for-life” basis; (c) the indenture governing the Second Lien Secured Notes consistent with the terms set forth in Exhibit D and otherwise
containing customary terms for the Second Lien Secured Notes issued in a private placement and eligible for resale on a “144A-for-life” basis; and (d) pledge and security agreements covering the collateral for the First Lien Secured
Notes and the Second Lien Secured Notes; in each of cases (a) through (d) in form and substance consistent in all material respects with this Commitment Letter and otherwise reasonably satisfactory to the Supermajority Commitment Parties
and the Company (collectively, the “Definitive Documentation”); and the Commitment Parties shall have received customary closing certificates (including a solvency certificate of a financial officer as to the solvency of the
Borrower and its subsidiaries, taken as a whole, after giving effect to the Transactions), customary legal opinions (for the avoidance of doubt, other than a 10b-5 letter), customary corporate documents, customary evidence of corporate authority,
and customary certificates of good standing in the Loan Parties’ respective jurisdictions of formation. 
 6. Representations and
Warranties. The representations and warranties made by the Company and its subsidiaries herein, or which are contained in any certificate furnished at any time under or in connection herewith shall (i) with respect to representations and
warranties that contain a materiality qualification, be true and correct and (ii) with respect to representations and warranties that do not contain a materiality qualification, be true and correct in all material respects, in each case on and
as of the Closing Date as if made on and as of such date (except for those which expressly relate to an earlier date). 
 7.
Bankruptcy. There shall be no bankruptcy or insolvency proceedings pending with respect to the Company or any subsidiary thereof. 

8. Discharge of Existing Debt. After giving effect to the Transactions, the Company and its subsidiaries shall have (A) no outstanding
indebtedness other than (i) up to $280 million of Convertible Secured Notes, (ii) $325 million of Secured Notes, (iii) borrowings under the New ABL Facility; and (iv) existing Notes that have not been tendered into the Exchange
Offer in an aggregate principal amount not exceeding the amount permitted to remain outstanding after the Closing Date under the terms of the RSAs; and (B) no liens in respect of borrowed money, other than liens permitted by or expressly
provided for under the New ABL Facility, Bridge Loan Facility or the indentures governing the First Lien Secured Notes and the Second Lien Secured Notes and/or liens outstanding immediately prior to the Closing Date (and not securing the First Lien
Facility). 
 9. Expenses. All expenses, including legal fees, required to be paid to the Commitment Parties under the
“Expenses” Section of this Commitment Letter shall have been paid in full. 
 10. Litigation. Except as disclosed in the
RSAs, there shall not have been instituted, threatened or be pending against, or with respect to, the Company or any of its subsidiaries any action, bankruptcy or insolvency, injunction, proceeding, application, order, claim counterclaim or
investigation (whether formal or informal) (and there shall have been no material adverse development to any action, application, claim counterclaim or proceeding currently instituted, threatened or pending) before or by any stock exchange, court

  
 G-2

 
or any governmental, regulatory or administrative agency or instrumentally, domestic or foreign, or by any other person, domestic or foreign, in connection with the Transactions that would or
would reasonably be expected to (i) prohibit, prevent, restrict or delay consummation of any of the Transactions, or (ii) impose burdensome restrictions on the Transactions. 
 11. Intercreditor Agreement. The agent, on behalf of itself and the lenders, under the New ABL Facility shall have entered into an intercreditor agreement (the “Intercreditor
Agreement”) with the trustee on behalf of the purchasers of the First Lien Secured Notes, the trustee on behalf of the purchasers of the Second Lien Secured Notes and the trustee on behalf of the holders of new Convertible Secured Notes
that is not materially less favorable to the holders of the First Lien Secured Notes and the holders of the Second Lien Secured Notes than the terms described on Exhibit C and D, respectively. 

12. Audited Financial Statements. The Commitment Parties shall have received audited consolidated balance sheets and related statements of
operations, stockholder’s equity and cash flows, together with all footnotes thereto, accompanied by the reports thereon of the accountants of the Company and its subsidiaries as of and for the three most recently completed fiscal years ended
at least ninety days before the Closing Date, which (x) were prepared in accordance with the books of account and other financial records of the Company, (y) except as disclosed in the Secured Notes and schedules thereto, have been
prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), consistently applied without modification of the accounting principles used in the preparation thereof throughout the periods
presented, and (z) present fairly the consolidated financial condition, results of operations and cash flows of the Company, as applicable, as at the dates and for the periods indicated therein, except to the extent any failure of the foregoing
clauses to be true and correct does not result in or constitute a MAC (as defined in the RSAs). 
 13. Unaudited Financial
Statements. The Commitment Parties shall have received (a) unaudited consolidated balance sheets and related statements of operations, stockholder’s equity and cash flows of the Company and its subsidiaries for each fiscal quarter
ended after the date of this Commitment Letter and at least sixty (60) days before the Closing Date, which were prepared in accordance with GAAP, subject to the absence of footnotes and normal year-end adjustments, and (b) a pro forma
consolidated balance sheet and related pro forma consolidated statement of operations of the Company and its subsidiaries for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least
sixty (60) days prior to the Closing Date, prepared after giving effect to the Transactions, as if such Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such other
financial statements). 
 14. Consents. Counsel to the Commitment Parties shall have received evidence that all boards of
directors, governmental, shareholder and material third party consents and approvals (if any) necessary in connection with the Transactions have been obtained or duly waived and all applicable waiting periods have expired without any action being
taken by any authority that could restrain, prevent or impose any material adverse conditions on such transactions or that could seek or threaten any of the foregoing. 

  
 G-3

 15. PATRIOT Act. The Issuer shall have delivered all documentation and other information
reasonably required by regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the PATRIOT Act, in any case, requested in writing by the Commitment Parties at least three
Business Days prior to the Closing Date. 
 16. Compliance with Laws. The issuance of the Secured Notes and other Transactions
contemplated hereby shall be in compliance in all material respects with all applicable laws and regulations and no order, statute, rule, regulation, executive order, stay, decree, judgment or injunction shall have been proposed, enacted, entered,
issued, promulgated, enforced or deemed applicable by any stock exchange, court or any governmental, regulatory or administrative agency or instrumentally, that would or would reasonably be expected to (i) prohibit, prevent, restrict or delay
consummation of the Transactions, or (ii) impose burdensome restrictions on the Transaction. 
 17. Suspension/Limitation on
Trading. There shall not have occurred (i) any general suspension of, or limitation on prices for, trading in securities in the United States securities or financial markets, (ii) any material impairment in the trading market for debt
securities, (iii) any declaration of a banking moratorium or any suspension of payments in respect to banks in the United States or other major financial markets, (iv) any limitation (whether or not mandatory) by any stock exchange,
government or governmental, administrative or regulatory authority or agency, domestic or foreign, or other event that might affect the extension of credit by banks or other lending institutions, (v) a commencement of a war, armed hostilities,
terrorist acts or other national or international calamity directly or indirectly involving the United States or (vi) in the case of any of the foregoing existing on the date hereof, a material acceleration or worsening thereof. 

18. Material Adverse Change. Except as set forth on Schedule I hereto, since March 31, 2011, no MAC has occurred and is continuing in
the business, properties, operations, financial condition, assets or liabilities (whether actual or contingent) of the Company and its subsidiaries, taken as a whole. 
 19. Collateral. All Uniform Commercial Code UCC-1 financing statements reasonably necessary or desirable to create and perfect the first priority and second priority (as applicable) liens
and security interests in respect of the collateral securing the Secured Notes shall have been delivered for filing, customary short-form security agreements with respect to intellectual property shall have been executed and delivered to the
Collateral Agent for filing with the U.S. Patent and Trademark Office and the U.S. Copyright Office and certificates representing the capital stock and membership interests (to the extent issued and certificated) of the Issuer and Guarantors shall
have been delivered to the collateral agent (or to its designated advisors) under the Indenture; provided that, to the extent the creation of any lien on any collateral or perfection of such lien requires any action on the part of any
third party (including, without limitation, delivery of reasonably satisfactory mortgages, title insurance policies, surveys and other customary documentation in connection with real estate collateral) and is not provided on the Closing Date after
the Issuer’s use of commercially reasonable efforts to do so (other than in respect of the filing of financing statements and the delivery of short-form security agreements and certificates representing capital stock and membership interest, in
each case as set forth above), the creation or perfection (as applicable) of such lien shall not constitute a condition 

  
 G-4

 
precedent to the issuance of the Secured Notes on the Closing Date but such action shall be required to have been taken within a commercially reasonable time after the Closing Date and in any
event within 90 days thereafter, subject to exceptions to perfection requirements to be reasonably agreed. 
 20. Qualification.
After giving effect to the debt financing and other transactions contemplated hereby, the Company and its subsidiaries shall each be qualified as “a citizen of the United States” within the meaning of Section 2 of the Shipping Act,
1916, as amended, 46 U.S.C. § 50501(a) and (d), qualified to own and operate vessels in the coastwise trade of the United States to the extent required by such Act in connection with the Company and its subsidiaries’ business. 

21. Closing; Company Deliverables. On the Closing Date, the Company shall have (i) delivered to the Commitment Parties a certificate
signed by an executive officer of the Company pursuant to which such officer shall certify that all of the conditions set forth in items 6, 7, 8, 10, 12, 13, 14, 16, 17, 18 and 20 on this Exhibit G (to the extent such conditions do not consist of
the satisfaction of or approvals of the Commitment Parties or their representatives) have been satisfied (or waived in writing by Commitment Parties), and (ii) delivered to each Commitment Party designated on Exhibit A and Exhibit B to the
Commitment Letter the Secured Notes duly registered in name of such Commitment Party or its affiliates or its designee. 
 22.
Information Verification. The Company shall have satisfied the information verification requirements described in a letter to a representative of the Exchanging Holders on or prior to the date of this Commitment Letter. 

23. Additional Matters. The parties shall, in good faith, work and cooperate together on the corporate, tax and regulatory aspects of the
Transactions and the post-reorganized Company so that the resolution of such matters is reasonably satisfactory to the Commitment Parties. Any new shipping charters entered into after the date hereof shall be in form and substance reasonably
satisfactory to the Commitment Parties. 

  
 G-5

 Schedule I 
 The following items shall not constitute MACs: 
 Notice of delisting of the Company’s stock
on the New York Stock Exchange (NYSE). 
 Settlement of non-antitrust litigation in the aggregate amount not to exceed $7.5 million. 

Events described in the Company’s Form 10-Q for the quarterly period ended March 27, 2011 filed on April 29, 2011, including those
described in Section 15 (Commitment and Contingencies) and Section 17 (Subsequent Events) of Part I, and in Section 1 (Legal Proceedings) and Section 5 (Other Information) of Part II. 

Events described in the Company’s Form 10-Q for the quarterly period ended June 26, 2011 filed on July 29, 2011, including those described
in Section 16 (Commitment and Contingencies) of Part I, and in Section 1 (Legal Proceedings) of Part II. 
 The recent amendments to
the First Lien Facility, as described in the 10-Q for the period ending June 26, 2011. 
 Nonpayment of interest payment due August 15,
2011 under the Indenture, until the later of the date on which (x) the Bridge Loan Facility closes and (y) the grace period set forth in the Indenture for the nonpayment of interest expires. 
 Items disclosed in writing to, and acknowledged by, the Exchanging Holders or a representative of the Exchanging Holders on or prior to the date of this Commitment Letter. 

  
 G-6Commitment Letter, dated August 26, 2011

 Exhibit 10.2 
 Execution Version 
  

					
	

	  	 Wells Fargo Capital Finance, LLC

1100 Abernathy Road, Suite 1600
 Atlanta, GA 30328
	  	

 August 26, 2011 
 Horizon Lines, Inc. 
 4064 Colony Road, Suite 200 

Charlotte, NC 28211 
 Attn: Michael T. Avara, CFO

 COMMITMENT LETTER 
 $100 MILLION SENIOR SECURED CREDIT FACILITY 
 Ladies and Gentlemen: 

You have advised Wells Fargo Capital Finance, LLC (“WFCF”), that Horizon Lines, Inc. (the “Parent”, or
“you”, and together with the Parent’s subsidiaries, the “Company”) seeks financing in order to (a) refinance certain of its existing indebtedness, (b) finance working capital, capital
expenditures, and general corporate purposes, and (c) pay fees and expenses associated with the proposed refinancing, the issuance of the Senior Notes and the Convertible Notes (as such terms are defined in the Term Sheet referenced below) and
the exchange offer for the Existing Notes (as defined in the Term Sheet). This commitment letter (the “Commitment Letter”), and the Summary of Terms and Conditions attached hereto (the “Term Sheet”),
describes the general terms and conditions for a $100,000,000 senior secured revolving credit facility (the “Credit Facility”). Upon the terms and subject to the conditions set forth in this Commitment Letter, the Fee Letter
(as defined below) and the Term Sheet, WFCF is pleased to confirm its commitment to provide 100% of the principal amount of the Credit Facility (the “Commitment”) to the Company. 

The parties acknowledge that this Commitment Letter and the Term Sheet (a) summarize all of the substantive conditions precedent to the Credit
Facility, and (b) do not purport to summarize all of the covenants, representations, warranties and other provisions that will be contained in the definitive documentation for the Credit Facility. The parties agree that such covenants,
representations, warranties and other provisions (to the extent not already addressed in this Commitment Letter or the Term Sheet) will be customary for transactions of this type or otherwise reasonably acceptable to the Company and WFCF.

 Syndication 
 WFCF
will act as sole lead arranger and sole bookrunner, and will manage all aspects of the syndication in consultation with you and with your consent, including the timing of all offers to potential lenders and the acceptance of commitments, the amount
offered, and the compensation provided. In addition WFCF will act as administrative agent and collateral agent for the Credit Facility and will perform the duties and exercise the authority customarily associated with such role. WFCF will have
“left” and “highest” placement in any and all marketing materials and documentation used in connection with the Credit Facility and have responsibilities typically associated with “left” and “highest”
placement, including maintaining sole physical books in respect of the Credit Facility. You agree that no other agents, co-agents, arrangers or bookrunners will be appointed, no other titles will be awarded and no compensation (other than as
expressly contemplated by this Commitment Letter, the Term Sheet and the Fee Letter) will 

 
be paid in connection with the Credit Facility to Lenders (as defined below) unless agreed to by WFCF and you. You agree that, effective upon your acceptance of this Commitment Letter and
continuing through the earlier of the Closing Date (as defined in the Term Sheet) and the termination of the Commitment, you shall not solicit any other bank, investment bank, financial institution, person or entity to provide, structure, arrange or
syndicate the Credit Facility or any other senior asset-based credit facility in connection with the issuance of the Senior Notes and the Convertible Notes (it being understood that the foregoing shall not restrict the structuring, arrangement,
syndication or issuance of the Senior Notes or the Convertible Notes). 
 WFCF reserves the right, prior to or at any time after the execution
of the Financing Documentation (as defined in the Term Sheet) on the Closing Date, and as part of any syndication thereof or otherwise, to arrange for the assignment of a portion of the Commitment to one or more financial institutions that will
become lenders subject to the Company’s prior written consent (which consent shall not be unreasonably withheld or delayed) (the “Lenders”) and be party to the Financing Documentation. You understand that WFCF may
commence the syndication efforts promptly upon your acceptance of this Commitment Letter and the Fee Letter. 
 The Company
agrees to use commercially reasonable efforts to assist WFCF in forming such syndicate of Lenders from the date hereof until the ninetieth (90th) day after the Closing Date. The Company’s assistance shall include (a) using commercially reasonable
efforts to make senior management and representatives of the Company available to participate in meetings and to provide information to potential lenders and participants at such times and places as WFCF may reasonably request with reasonable prior
notice; (b) using commercially reasonable efforts to provide all information reasonably deemed necessary by WFCF to facilitate the syndication, subject to confidentiality agreements in form and substance reasonably satisfactory to the Company
and WFCF; (c) assisting in the preparation of a customary confidential information memorandum for the Credit Facility and/or other customary marketing materials to be used in connection with the syndication; (d) assisting WFCF in hosting
meetings (which can be via a telephonic conference call) of prospective Lenders reasonably requested by WFCF and mutually agreed upon and at times and locations to be mutually agreed upon; (e) using commercially reasonable efforts to ensure
that the syndication efforts of WFCF benefit from the existing lender relationships of the Company; and (f) using commercially reasonable efforts to provide such other assistance customarily provided for a syndicated credit facility similar to
the Credit Facility that WFCF shall reasonably request. In addition, the Company agrees that WFCF shall have the right to provide certain information to be agreed upon concerning the Credit Facility to loan syndication and reporting services. You
hereby further authorize WFCF to download copies of the Company’s logo from its website and post copies thereof on a SyndTrak or similar workspace and use the logo on any confidential information memoranda, presentations and other Information
Materials (as defined below) prepared in connection with syndication of the Credit Facility. WFCF reserves the right to engage the services of its affiliates (including, without limitation, Wells Fargo Bank, National Association) in furnishing the
services to be performed by WFCF as contemplated herein and to allocate (in whole or in part) to any such affiliates any fees payable to them in such manner as WFCF and its affiliates may agree in their sole discretion and to share with any of its
affiliates and advisors, any information related to the Credit Facility or any other matter contemplated hereby. Without limiting your obligations to assist with syndication efforts as set forth herein, it is understood and agreed that WFCF’s
Commitment hereunder is not conditioned upon the syndication of, or receipt of commitments in respect of, the Credit Facility and in no event shall the commencement or successful completion of syndication of the Credit Facility constitute a
condition to the availability of the Credit Facility on the Closing Date, and no reduction of WFCF’s Commitment from any Lenders shall relieve WFCF of its obligation to make available on the Closing Date, the portion of the Credit Facility of
any Lender that fails, upon satisfaction or waiver of the conditions set forth in this Commitment Letter, to make available as a revolving commitment under the Credit Facility on the Closing Date. 

  
 2 

 Conditions to Commitment 
 The Commitment of WFCF to provide the Credit Facility shall be subject to (a) the written acceptance of the Fee Letter by the Parent, (b) the negotiation, execution and delivery of the Financing
Documentation, (c) the performance of your obligations set forth herein (other than the obligations set forth in the provisions relating to Confidentiality and Syndication herein), in the Term Sheet and in the Fee Letter, (d) the
performance of your obligations set forth in the provisions relating to Confidentiality and Syndication herein in all material respects, and (e) the satisfaction of the conditions set forth herein, in the Term Sheet, and in the Fee Letter.

 Fees, Costs and Expenses 
 You agree to pay the fees set forth in the Term Sheet and in the fee letter dated as of the date hereof (the “Fee Letter”) to WFCF, in U.S. dollars in immediately available funds,
as and when indicated therein. 
 In consideration of the Commitment of WFCF and recognizing that in connection herewith WFCF is incurring costs
and expenses (including, without limitation, fees and disbursements of one counsel (plus, if necessary, one local counsel in each applicable jurisdiction and one regulatory counsel), filing and recording fees, costs and expenses of due diligence,
transportation, duplication, messenger, appraisal, audit (limited, prior to the Closing Date, to one updated survey field examination and one funding field examination performed by WFCF and its agents) and syndication, and consultant costs and
expenses), you hereby agree to pay, or reimburse, WFCF from time to time for all such reasonable and documented out-of-pocket costs and expenses, regardless of whether the Credit Facility contemplated hereby is consummated; provided that you
shall not be responsible for legal fees and expenses of more than one outside counsel and, to the extent deemed necessary by WFCF, one local counsel in each applicable jurisdiction and one regulatory counsel; provided further that if
WFCF intends to engage any third party appraiser or consultant, the reimbursement of the related fees and expenses by the Company shall be limited to such documented fees charged by such appraiser or consultant, which such fees shall be approved in
advance by the Company in writing (such approval not to be unreasonably withheld or delayed) and such documented expenses incurred by such appraiser or consultant. For the avoidance of doubt, the limitation in the immediately foregoing proviso shall
not apply to any contract field examiner engaged, directly or indirectly, by WFCF. You also agree to pay from time to time, without duplication, all reasonable and documented out-of-pocket costs and expenses of WFCF (provided that for legal fees and
expenses, you shall only be responsible for the reasonable and out-of-pocket fees and disbursements of one counsel, plus, to the extent deemed necessary by WFCF, one local counsel in each applicable jurisdiction and one regulatory counsel) incurred
in connection with the enforcement of any of its rights and remedies hereunder. 
 Upon accepting this Commitment Letter, you agree to pay to
WFCF an expense deposit of $125,000 (the “Deposit”), which amount shall be applied to the payment of costs and expenses payable by you pursuant to the preceding paragraph and not already reimbursed or funded in advance. In
addition, you hereby agree to pay to WFCF, upon its request during the documentation period for the Credit Facility, additional expense deposits in an aggregate amount not to exceed an additional $125,000 if the aggregate amount of expenses incurred
through the date of such request have exceeded or are reasonably expected to exceed the amount of the initial Deposit (the “Additional Deposits”), which amounts shall be applied to the payment of costs and expenses payable by
you pursuant to the preceding paragraph. The Deposit and any Additional Deposits, net of all reimbursable expenses, will be applied to closing costs and fees. If the Closing Date occurs or the Commitment terminates and the Credit Facility does
not close, then the Deposit and any Additional Deposits, minus all expenses payable by you pursuant to the preceding paragraph to which such Deposit or Additional Deposit is applied, shall be promptly refunded to you. 

  
 3 

 Confidentiality 
 You agree that this Commitment Letter (including the Term Sheet) and the Fee Letter are for your confidential use only and that the terms hereof shall not be disclosed by you to any person other than
(a) your affiliates, officers, directors, employees, accountants, attorneys, and other advisors, and then only on a “need-to-know” basis in connection with the transactions contemplated hereby and on a confidential basis and
(b) the prospective purchasers and holders of the Senior Notes and the Convertible Notes and the holders of the Existing Notes and the holders of the indebtedness under the Existing Credit Agreement, and the affiliates, officers, directors,
employees, accountants, attorneys, and other advisors of the foregoing, on a confidential basis, provided, however, the fees described in the Fee Letter shall be redacted in any such disclosures. The foregoing notwithstanding,
following your acceptance of this Commitment Letter in accordance herewith, you (i) may file a copy of this Commitment Letter or the Term Sheet or the Fee Letter, in any public record in which it is required by law to be filed, and
(ii) may make such other public disclosures of the terms and conditions hereto pursuant to the order of any court or administrative agency in any legal or administrative proceeding or as you are required by law or compulsory legal process or to
the extent requested or required by governmental and/or regulatory authorities, in the opinion of your counsel, to make; provided, however, the fees described in the Fee Letter shall be redacted in any such filings or other disclosures
(other than as part of a generic disclosure of aggregate sources and uses related to fee amounts to the extent customary or required in marketing materials, any proxy or other periodic filing or any prospectus or other offering memorandum).

 Prior to and including the Closing Date, WFCF, on the one hand, and the Company on the other hand, shall have the right to review and approve
(such approval not to be unreasonably withheld or delayed) any public announcement made by the other party or their affiliates and representatives after the date hereof relating to the Credit Facility or to the Company or to WFCF in connection
therewith, before any such announcement or filing is made. 
 Information 

In issuing this Commitment Letter, WFCF is relying on the accuracy of the information furnished to it by or on behalf of the Company
and its affiliates, without independent verification thereof. The Company represents and warrants to WFCF that (a) all written information concerning the Company and its subsidiaries (the “Information”) that has been, or
is hereafter, made available by or on behalf of the Company (other than projections of future financial performance and other forward looking financial statements and forecasts of general economic or industry performance) is, or when delivered shall
be, when considered as a whole, complete and correct in all material respects and does not, or shall not when delivered, contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements
contained therein not misleading in light of the circumstances under which such statements have been made, and (b) to the extent that any such Information contains projections of future financial performance of the Company and its subsidiaries
(the “Projections”), such Projections were prepared in good faith on the basis of (i) assumptions that are believed by the Company to be reasonable at the time such Projections were prepared, and (ii) information
believed by the Company to have been accurate in all material respects based upon the information available to the Company at the time such Projections were prepared; it being understood that the Projections are as to future events and are not to be
viewed as facts and that actual results during the period or periods covered by the Projections may differ significantly from the projected results and such differences may be material. The Company agrees to furnish WFCF with such Information and
Projections as WFCF may reasonably request and to supplement the Information and the Projections from time to time until the Closing Date and, if requested by WFCF, until the ninetieth (90th) day after the Closing Date so that the representations and warranties contained in the preceding sentence remain
correct in all material respects (including, without limitation, updating the Projections to the extent the Company becomes aware that such Projections have become 

  
 4 

 
materially inaccurate or have been prepared based upon assumptions that the Company believes are no longer reasonable, but only in the event that such assumptions, if incorrect, would result in
the Projections being materially inaccurate). 
 You acknowledge that (a) WFCF on your behalf will make available the Information,
Projections and other marketing materials and presentations, including confidential information memoranda (collectively, the “Informational Materials”), to the potential Lenders by posting the Informational Materials on
SyndTrak or by other similar electronic means (collectively, the “Electronic Means”) and (b) certain prospective Lenders (“Public Lenders”; all other Lenders, “Private
Lenders”) may not wish to receive material non-public information (within the meaning of the United States federal securities laws, “MNPI”) with respect to the Company or its affiliates or any of their respective
securities, and who may be engaged in investment and other market-related activities with respect to such entities’ securities. At the request of WFCF, (i) you will assist, and cause your affiliates and advisors to assist, WFCF in the
preparation of Informational Materials to be used in connection with the syndication of the Credit Facility to Public Lenders, which will not contain MNPI (the “Public Informational Materials”), (ii) you will identify
and conspicuously mark any Public Informational Materials “PUBLIC”, and (iii) you will identify and conspicuously mark any Informational Materials that include any MNPI as “PRIVATE AND
CONFIDENTIAL”. Notwithstanding the foregoing, you agree that WFCF may distribute the following documents to all prospective Lenders (including the Public Lenders) on your behalf, unless you advise WFCF in writing (including by email)
within a reasonable time prior to their intended distributions that such material should not be distributed to Public Lenders: (A) administrative materials for prospective Lenders such as lender meeting invitations and funding and closing
memoranda, (B) notifications of changes to the Credit Facility’s terms, (C) financial information regarding the Company and its subsidiaries (other than the Projections, budgets or similar equivalents thereof) and (D) drafts and
final versions of the Financing Documentation. If you advise us in writing (including by email) that any of the foregoing items (other than the Financing Documentation) should not be distributed to Public Lenders, then WFCF will not
distribute such materials to Public Lenders without further discussions with you. Before distribution of any Information Materials (1) to prospective Private Lenders, you shall provide us with a customary letter authorizing the
dissemination of the Information Materials and confirming the accuracy and completeness in all material respects of the information contained therein in a manner consistent with the representation in the immediately preceding paragraph and
(2) to prospective Public Lenders, you shall provide us with a customary letter authorizing the dissemination of the Public Information Materials and confirming the accuracy and completeness in all material respects of the information contained
therein in a manner consistent with the representation in the immediately preceding paragraph and the absence of MNPI therefrom. 

Indemnification 
 You agree to
indemnify and hold harmless WFCF, each of its affiliates, and each of its officers, directors, employees, agents, advisors, attorneys, and representatives (each, an “Indemnified Party”) from and against any and all claims,
damages, losses, liabilities, and expenses (including, without limitation, reasonable and documented fees and disbursements of counsel; provided that counsel shall be limited to one primary counsel for all Indemnified Parties and, to the
extent reasonably necessary, one local counsel in each applicable jurisdiction and one regulatory counsel for all Indemnified Parties and, in the case of any actual or perceived conflict of interest, one additional counsel for each affected
Indemnified Party that is similarly situated with respect to such conflict of interest) that may be incurred by or asserted or awarded against any Indemnified Party (other than disputes (including lawsuits) between or among Indemnified Parties), in
each case, arising out of or in connection with or relating to this Commitment Letter, the Fee Letter, the loan documentation, or the transactions contemplated hereby, or any use made or proposed to be made with the proceeds of the Credit Facility,
and whether or not the Credit Facility is consummated, except to the extent such claim, damage, loss, liability, or expense is found in a final non-

  
 5 

 
appealable judgment by a court of competent jurisdiction to have resulted from an Indemnified Party’s gross negligence or willful misconduct or material breach of this letter. 

You further agree that no Indemnified Party shall have any liability (whether direct or indirect, in contract, tort or otherwise) to the Company for or
in connection with the Credit Facility contemplated hereby, except to the extent such liability is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from an Indemnified Party’s material breach of
contract, gross negligence or willful misconduct. In no event, however, shall any party hereto be liable on any theory of liability for any special, indirect, consequential or punitive damages. This Commitment Letter is addressed solely to the
Company and is not intended to confer any obligations to or benefits upon any third party. 
 Other Services 

Nothing contained herein shall limit or preclude WFCF or any of its affiliates from carrying on any business with, providing banking or other financial
services to, or from participating in any capacity, including as an equity investor, in any party whatsoever, including, without limitation, any of your competitors, suppliers or customers or any of your or their respective affiliates, or any other
party that may have interests different than or adverse to such parties. 
 You acknowledge that WFCF and its affiliates (the term
“WFCF” as used in this paragraph being understood to include such affiliates) (i) may be providing debt financing, equity capital or other services (including financial advisory services) to other entities or persons with which
you or your affiliates may have conflicting interests regarding the transactions contemplated hereby and otherwise, (ii) may act, without violation of its contractual obligations to you, as it deems appropriate with respect to such other
entities or persons, and (iii) have no obligation in connection with the transactions contemplated hereby to use, or to furnish to you or your affiliates or subsidiaries, confidential information obtained from other entities or persons.

 In connection with all aspects of the transactions contemplated hereby, you acknowledge and agree that: (i) the Credit Facility and any
related arranging or other services contemplated in this Commitment Letter constitute an arm’s-length commercial transaction between you and your affiliates, on the one hand, and WFCF, on the other hand, and you are capable of evaluating and
understanding and understand and accept the terms, risks and conditions of the transactions contemplated hereby, (ii) in connection with the process leading to the transactions contemplated hereby, WFCF is and has been acting solely as a
principal and not as a financial advisor, agent or fiduciary, for you or any of your affiliates, equityholders, directors, officers, employees, creditors or any other party, (iii) WFCF has not assumed or nor will it assume an advisory, agency
or fiduciary responsibility in your or your affiliates’ favor with respect to the transactions contemplated hereby or the process leading thereto (irrespective of whether WFCF or any of its affiliates has advised or is currently advising you or
your affiliates on other matters) and WFCF has no obligation to you or your affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth in this Commitment Letter, (iv) WFCF and its affiliates may
be engaged in a broad range of transactions that involve interests that differ from yours and those of your affiliates and WFCF shall have no obligation to disclose any of such interests, and (v) WFCF has not provided any legal, accounting,
regulatory or tax advice with respect to the transactions contemplated hereby and you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate. You hereby agree not to make any claims that you
may have against WFCF and its affiliates with respect to any breach or alleged breach of agency or fiduciary duty arising out of or based upon (or alleged to arise out of or be based upon) this Commitment Letter, the Fee Letter, the transactions
contemplated hereby or the Financing Documentation or the arrangements created or formed hereunder or thereunder or in connection herewith or therewith. 

  
 6 

 Governing Law, Etc. 
 This Commitment Letter shall be governed by, and construed in accordance with, the law of the State of New York. Each of the parties hereto hereby agree that any suit or proceeding arising in respect of
this Commitment Letter or the Fee Letter or any of the matters contemplated hereby or thereby will be tried exclusively in the U.S. District Court for the Southern District of New York or, if such court does not have subject matter jurisdiction, in
any state court located in the Borough of Manhattan, and the parties hereto hereby agree to submit to the exclusive jurisdiction of, and venue in, such court. The parties hereto hereby agree that service of any process, summons, notice or document
by registered mail addressed to you or WFCF will be effective service of process against such party for any action or proceeding relating to any such dispute. The parties hereto irrevocably and unconditionally waive any objection to venue of any
such action or proceeding brought in any such court and any claim that any such action or proceeding has been brought in an inconvenient forum. A final judgment in any such action or proceeding may be enforced in any other courts with jurisdiction
over you or WFCF. This Commitment Letter (together with the Term Sheet) and the Fee Letter set forth the entire agreement between the parties with respect to the matters addressed herein, supersedes all prior communications, written or oral, with
respect hereto, and may not be amended or modified except in writing signed by each of the parties hereto. This Commitment Letter may be executed in any number of counterparts, each of which, when so executed, shall be deemed to be an original and
all of which, taken together, shall constitute one and the same letter. Delivery of an executed counterpart of a signature page to this Commitment Letter by telecopier or other electronic (e.g. “.pdf” or “.tif”) transmission
shall be as effective as delivery of a manually executed counterpart of this Commitment Letter. This Commitment Letter will terminate upon the execution and effectiveness of the definitive credit agreement for the Credit Facility; provided,
however, that the Fees, Costs and Expenses, Confidentiality, Indemnification, Other Services, Governing Law, and Waiver of Jury Trial provisions hereof shall survive such termination; and provided further that the provisions
relating to Fees, Cost and Expenses, Confidentiality and Indemnification shall be superseded, in each case, to the extent covered thereby, by the applicable provisions contained in the definitive credit agreement for the Credit Facility upon
execution and effectiveness thereof, and thereafter shall have no further force and effect. 
 Waiver of Jury Trial 

Each party hereto irrevocably waives all right to trial by jury in any action, proceeding, or counterclaim (whether based on contract, tort, or otherwise)
arising out of or relating to this Commitment Letter or the Fee Letter or the transactions contemplated hereby or thereby or the actions of WFCF or any of its affiliates in the negotiation, performance, or enforcement of this Commitment Letter or
the Fee Letter. 
 Patriot Act 
 WFCF hereby notifies you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT Act”), WFCF may
be required to obtain, verify and record information that identifies the Loan Parties (as defined in the Term Sheet), which information includes the name, address, tax identification number and other information regarding the Loan Parties that will
allow WFCF to identify the Loan Parties in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the PATRIOT Act. You agree to provide WFCF, prior to the Closing Date, with all such documentation and other
information required by bank regulatory authorities under “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act that shall have been requested by WFCF in accordance with
applicable law or internal policies of WFCF. 

  
 7 

 Acceptance/Expiration of Commitment 
 This Commitment Letter will expire at 11:59 p.m. (Eastern time) on August 26, 2011 (the “Expiration Date”), unless the Parent executes this Commitment Letter and the Fee
Letter and returns them to us prior to that time, together with the Deposit (wiring instructions attached hereto) and the Work Fee (as defined in the Fee Letter). In the event the closing and effectiveness of the revolving commitments under the
Credit Facility do not occur on or prior to October 31, 2011, then WFCF’s Commitment hereunder shall automatically expire on such date (unless otherwise extended by WFCF in its sole discretion). 

[Remainder of page intentionally left blank] 

  
 8 

 Wells Fargo Capital Finance, LLC is pleased to have the opportunity to assist you in connection with this
important financing transaction. If you are in agreement with the foregoing, please sign this Commitment Letter and return it to WFCF by no later than the Expiration Date, together with the Deposit, the Work Fee and an executed copy of the Fee
Letter. 
  

			
	Very truly yours,
	
	WELLS FARGO CAPITAL FINANCE, LLC
		
	By:	 	 /s/ Rob Griffin

	Name:	 	Rob Griffin
	Title:	 	Managing Director

  

			
	 ACCEPTED AND AGREED TO
 as of the date first above written

	
	HORIZON LINES, INC.
		
	By:	 	 /s/ Michael T. Avara

	Name:	 	Michael T. Avara
	Title:	 	Executive Vice President and Chief Financial Officer

 Commitment Letter 
 Horizon Lines, Inc. 

 HORIZON LINES, INC. 

$100,000,000 Senior Secured Credit Facility 
 Summary of Terms and Conditions 
  

 
 This Summary of Terms and Conditions is part of
the commitment letter, dated August 26, 2011 (the “Commitment Letter”), addressed to Horizon Lines, Inc. by Wells Fargo Capital Finance, LLC and is subject to the terms and conditions of the Commitment Letter.
Capitalized terms used herein and the accompanying Annexes shall have the meanings set forth in the Commitment Letter unless otherwise defined herein or in such Annexes. 

 

			
	Borrower:	  	Horizon Lines, LLC, a Delaware limited liability company (“Opco”) and, if mutually agreed, Horizon Lines, Inc., a Delaware corporation (the
“Parent”) and such additional subsidiaries of the Parent (Opco and such persons, being collectively referred to as the “Borrower”).
		
	Guarantors:	  	The Parent and the Parent’s present and future material domestic subsidiaries (in each case, other than the Borrower with respect to its own obligations as a borrower). Such
Guarantors, together with the Borrower, each a “Loan Party” and collectively, the “Loan Parties”.
		
	 Sole Lead Arranger and
 Sole Bookrunner:
	  	Wells Fargo Capital Finance, LLC (“WFCF”) shall act as sole lead arranger and sole bookrunner.
		
	Administrative and Collateral Agent:	  	WFCF shall act as the sole administrative agent and collateral agent for the Lenders (in such capacity, the “Agent”).
		
	Lenders:	  	WFCF and such other lenders (the “Lenders”) as the Agent elects to include within the syndicate subject to the consent of the Borrower, such consent not to
be unreasonably withheld or delayed.
		
	Credit Facility:	  	A senior secured revolving credit facility (the “Credit Facility”) with advances thereunder (“Advances”) not to exceed, at any time
outstanding, $100,000,000 (“Maximum Credit Amount”). Advances will include swingline advances up to a sublimit to be mutually agreed upon in the Financing Documentation, provided by WFCF as swingline lender. In addition,
Advances under the Credit Facility may not exceed the Borrowing Base as hereinafter defined.
		
	Credit Facility Increase:	  	The Borrower shall be entitled to request increases in the Maximum Credit Amount (each, a “Facility Increase”) in an aggregate principal amount of not more
than $25,000,000; provided that (a) each such Facility Increase shall be in a minimum amount equal to $5,000,000, (b) no default or event of default under the Credit Facility shall exist immediately prior to or after giving effect thereto and
(c) no Lender shall

			
		  	be required, or otherwise obligated, to provide any such Facility Increase except in its sole and absolute discretion.
		
	Closing Date:	  	The closing date of the Credit Facility (the “Closing Date”) is anticipated to occur before September 30, 2011.
		
	Documentation:	  	The definitive documentation for the Credit Facility shall include, among other items, a credit agreement, Intercreditor Agreement (as defined below), promissory notes, guarantees
and appropriate pledge, security, mortgage, vessel mortgage and other collateral documents (including, without limitation, non-exclusive licenses with respect to the Agent’s use of the intellectual property of the Loan Parties to realize upon
the ABL Priority Collateral (as defined below)) (collectively, the “Financing Documentation”).
		
	Availability and Borrowing Base:	  	 Availability under the Credit Facility (“Excess Availability”) will be equal to (a) the lesser of (i) the
Borrowing Base (as defined below) and (ii) the Maximum Credit Amount, minus (b) the sum of (i) the outstanding aggregate amount of Advances and outstanding Letters of Credit (“Usage”) plus (ii) past due
payables (to be defined as mutually agreed in the Financing Documentation).
  

“Borrowing Base” will be calculated as follows:
  

(A)    85% of the amount of the Loan Parties’ eligible accounts (to be defined as set
forth in Annex C hereto); minus
  
 (B)    applicable reserves established by the Agent from time to time in its Permitted Discretion (as defined below).

 
 “Permitted Discretion” means a determination made in good
faith in the exercise of reasonable (from the perspective of an asset-based secured lender) business judgment.
  
 The initial reserves established in the Closing Date Borrowing Base, if any, shall be mutually agreed. No decrease in the advance rates will be permitted. If the Agent, in its Permitted Discretion,
establishes or increases reserves subsequent to the Closing Date, and the implementation or increase of such reserves directly results in an overadvance, the Borrower shall have three business days from the date of receipt of the notice of such
establishment or increase to eliminate such overadvance.

		
	Letter of Credit Subfacility:	  	Under the Credit Facility, the Agent shall issue or cause Wells Fargo Bank, National Association (the “L/C Issuer”) to issue,
upon request of the Borrower (subject to satisfaction or waiver of the conditions for making Advances) letters of credit

  
 2 

			
		  	(“Letters of Credit”) in an aggregate amount not to exceed $30,000,000 at any one time outstanding.
		
	Optional Prepayment:	  	The Advances under the Credit Facility may be prepaid and unused commitments under the Credit Facility may be reduced at any time, in whole or in part, at the option of the
Borrower, upon notice and in minimum principal amounts and in multiples to be agreed upon, without premium or penalty (except breakage and related redeployment costs).
		
	Mandatory Prepayments:	  	 The Borrower shall be required to repay outstanding amounts under the Credit Facility (and thereafter cash collateralize outstanding
Letters of Credit, as applicable, in amounts to be mutually agreed to in the Financing Documentation) if the aggregate outstanding principal amount of the loans under the Credit Facility and outstanding Letters of Credit exceeds the lesser of
(a) the Borrowing Base then in effect and (b) the Maximum Credit Amount.
  

In addition, the Credit Facility shall be required to be prepaid (without a corresponding reduction in the Maximum Credit Amount) (a) in an amount equal
to 100% of the net cash proceeds of asset dispositions of the ABL Priority Collateral (as defined below) and (b) subject to the terms of the Intercreditor Agreement (as defined below) and after application of such proceeds to the prepayment of the
Secured Notes (as defined below) and the Convertible Secured Notes (as defined below), in an amount equal to 100% of the net cash proceeds of asset disposition and casualty insurance and condemnation receipts received by the Parent or its
subsidiaries of the Notes Priority Collateral (as defined below) (in each case, subject to exceptions and customary reinvestment provisions to be mutually agreed in the Financing Documentation).

 
 All mandatory prepayments shall be applied to repay outstanding advances under the
Credit Facility. All such payments shall be made in cash without any prepayment premium or penalty (but including all breakage and related redeployment costs).

		
	Use of Proceeds:	  	The Credit Facility shall be used (a) together with the proceeds of (i) $225,000,000 in aggregate principal amount of new first lien secured notes issued by Opco due 5 years from
the issuance date thereof (the “First Lien Secured Notes”) and (ii) $100,000,000 in aggregate principal amount of new second lien secured notes issued by Opco due 5 years from the issuance date thereof (the “Second
Lien Secured Notes” and, together with the First Lien Secured Notes, the “Secured Notes”), to refinance certain existing indebtedness of the Parent (including, without limitation, indebtedness incurred pursuant
to that certain Credit Agreement dated as of August 8,

  
 3 

			
		  	 2007 (as amended, restated, supplemented or otherwise modified from time to time, the “Existing Credit
Agreement”) among the Parent, the guarantors party thereto, the lenders party thereto, and Wells Fargo Bank, National Association (successor by merger to Wachovia Bank, National Association), as existing administrative agent
(“Existing Agent”) and indebtedness in the principal amount of up to $25,000,000 funded prior to the Closing Date by certain holders of the Existing Notes (as defined below) as bridge loans ( the “Bridge Loan
Facility”)), (b) to fund certain fees and expenses associated with the Credit Facility and the other Transactions (as defined below), and (c) to finance the ongoing general corporate and working capital needs of the Borrower, the Loan
Parties and (to the extent otherwise permitted under the Facility Documentation) their non-Loan Party subsidiaries.
  
 As used herein, the term “Transactions” means, collectively, (i) the refinancing of certain existing indebtedness as contemplated herein, (ii) the issuance of the Secured Notes as
contemplated herein, (iii) the issuance by the Parent of convertible secured notes due 5 1/2 years from the issuance date thereof (the “Convertible Secured Notes”) and approximately $50,000,000 of common stock of the Parent in exchange for all or substantially all of the
4.25% convertible senior notes of the Parent due 2012 (the “Existing Notes”) in the outstanding principal amount of $330,000,000 as contemplated herein, (iv) the initial borrowings and other extensions of credit under the
Credit Facility on the Closing Date and (v) the payment of fees and expenses in connection with each of the foregoing.

		
	Fees and Interest Rates:	  	As set forth on Annex A.
		
	Term:	  	The final maturity of the Credit Facility will occur on the day that is 5 years after the Closing Date (the “Maturity Date”) and the commitments with respect
to the Credit Facility will automatically terminate on such date; provided that if the Secured Notes shall have not been repaid, refinanced, defeased or, in the reasonable determination of the Agent, adequately reserved for or cash
collateralized on or prior to the 90th day immediately
preceding the maturity date of the Secured Notes, then the Maturity Date will occur on such 90th day; provided further that, with respect to any refinance, such refinanced notes shall have a maturity date that is at least 90 days later than the Maturity Date.
		
	Collateral:	  	(a) A first priority perfected security interest in all of the accounts, deposit accounts, securities accounts, investment property (other than equity interests of the subsidiaries
of the Parent), cash, tax refunds and similar tax payments, intercompany loans made (A) for working capital purposes and/or (B) from proceeds of loans under the Credit Facility,

  
 4 

			
		  	 chattel paper, documents, instruments, letter-of-credit rights, supporting obligations, contract rights, general intangibles (excluding
intellectual property), commercial tort claims and related books and records of the Loan Parties, in each case, whether now owned or hereafter acquired or coming into existence, and wherever located, and all accessions, products and proceeds
(including, without limitation, insurance proceeds, claims, damages and proceeds of suit) of the foregoing, subject to permitted liens and customary exceptions (to be mutually agreed in the Financing Documentation), including an exception for any
items constituting identifiable proceeds of the Notes Priority Collateral (the “ABL Priority Collateral”); and
  

(b) A fourth priority perfected security interest in all tangible and intangible property of the Loan Parties securing the obligations under the Secured
Notes, including, without limitation, equity interests of the subsidiaries of the Loan Parties (provided that in respect of equity interests of foreign subsidiaries only 65% of the voting equity interests (and 100% of the non-voting equity
interests) of first-tier foreign subsidiaries will be required to be pledged); inventory; all containers, chassis, generator sets, tractors, forklifts, top picks, top loaders, reach stackers and other similar or related equipment and machinery of
the Loan Parties used in connection with the loading and unloading and/or transport of goods and including all spare parts for all such equipment and machinery (collectively, the “Chassis and Container Equipment”); vessels
and real property (including all improvements thereon); equipment and fixtures; and all accessions, products and proceeds (including, without limitation, insurance proceeds, claims, damages and proceeds of suit) of the foregoing, but excluding ABL
Priority Collateral (the “Notes Priority Collateral” and together with the ABL Priority Collateral, the “Collateral”).
  

All such security interests will be created pursuant to, and will comply with, Financing Documentation reasonably satisfactory to the Agent. On the
Closing Date, such security interests will have been perfected subject to exceptions that are customary or mutually agreed upon. Further, as to specific items of Collateral, the Agent may determine, in consultation with the Borrower, not to perfect
its security interest therein if the cost of creating or perfecting such pledges or security interests in such assets or obtaining other deliverables required therein in respect of such assets shall be excessive in view of the benefits to be
obtained by the Lenders therefrom. The obligations secured shall include hedging and bank product obligations of the Loan Parties where a Lender or an affiliate thereof is a counterparty subject to certain conditions to be specified in the Financing
Documentation.

  
 5 

			
		  	 The Financing Documentation will permit (i) the First Lien Secured Notes to be secured by a first priority lien on the Notes Priority
Collateral and a second priority lien on the ABL Priority Collateral, (ii) the Second Lien Secured Notes to be secured by a second priority lien on the Notes Priority Collateral and a third priority lien on the ABL Priority Collateral and (iii) the
Convertible Secured Notes to be secured by a third priority lien on the Notes Priority Collateral and a fourth priority lien on the ABL Priority Collateral.
  

The aforementioned lien priorities, relative rights and other creditors’ rights issues in respect of the Credit Facility, the Secured Notes and the
Convertible Secured Notes will be set forth in one or more intercreditor agreements (the “Intercreditor Agreement”), which shall be reasonably acceptable to the Borrower and the Agent.

		
	Cash Management/Cash Dominion, Etc:	  	On the Closing Date, the cash management system of the Borrower shall be satisfactory to the Agent in its Permitted Discretion (it being understood that the current depositary
and lockbox banks of the Borrower are satisfactory) and the Financing Documentation shall provide for springing full dominion and control in favor of the Agent (“Cash Dominion”) over certain deposit and securities accounts
(as more fully described below) if an event of default has occurred and is continuing or Excess Availability is less than (each, a “Trigger Event”) the greater of (a) $12,500,000 and (b) 12.5% of the Maximum
Credit Amount (collectively, the “Trigger Amount”); provided that such Cash Dominion shall be released when no default under the Credit Facility exists and Excess Availability has been greater than the Trigger Amount
for 45 consecutive days. On or prior to the date that is 60 days after the Closing Date or such longer period as the Agent may agree (or, if an event resulting in Cash Dominion shall have occurred on or prior to such date, within five (5) business
days thereafter (or such longer period as the Agent may agree)), all deposit, securities, investment, collection, clearing and/or concentration accounts of the Loan Parties (subject to customary exceptions to be mutually agreed in the Financing
Documentation, but in any event excluding any and all Exempt Accounts) shall be subject to deposit account control agreements or other appropriate control agreements and/or lockbox agreements, in each case, in form and substance reasonably
satisfactory to the Agent. The term “Exempt Accounts” used herein shall mean any and all of (i) deposit accounts established solely as payroll, zero balance and imprest accounts and (ii) other deposit accounts, so long as (A)
the balance of each such account is transferred to a deposit account that is subject to a deposit account control agreement not less than once during every five (5) business days and (B) the balance in any such account does not exceed $2,000,000 for
more than 1 business day and the balance in all such

  
 6 

			
		  	accounts does not exceed $5,000,000 for more than 1 business day, but in any event, the balance in all such accounts does not exceed $10,000,000 at any time.
		
	Representations and Warranties:	  	The credit agreement governing the Credit Facility will include such representations and warranties (certain of which will be subject to materiality thresholds, baskets and other
exceptions and qualifications to be mutually agreed upon in the Financing Documentation) to be made by the Loan Parties and their respective subsidiaries as are usual and customary for Agent’s financings of this type, including the following:
Due organization and qualification; subsidiaries; due authorization; no conflict; governmental consents; binding obligations; perfected liens; title to assets; no encumbrances; jurisdiction of organization; location of chief executive office;
organizational identification number; commercial tort claims; litigation; compliance with laws; no material adverse change; fraudulent transfer; employee benefits; environmental condition; intellectual property; leases; deposit accounts and
securities accounts; accuracy of disclosure; material contracts (to be defined as mutually agreed in the Financing Documentation); Patriot Act and OFAC; indebtedness; payment of taxes; margin stock; governmental regulation; eligible accounts;
ownership of property; collateral records; and United States citizenship under the Jones Act.
		
	Affirmative Covenants:	  	The credit agreement governing the Credit Facility will include such affirmative covenants (certain of which will be subject to materiality thresholds, baskets and other
exceptions and qualifications to be mutually agreed upon in the Financing Documentation) applicable to the Loan Parties and their respective subsidiaries as are usual and customary for Agent’s financings of this type, including the following:
Financial statements, reports, and certificates; collateral reporting; existence; maintenance of properties; taxes; insurance; inspection; compliance with laws; environmental; disclosure updates; formation of subsidiaries; further assurances; lender
meetings; material contracts; employee benefits; and United States citizenship under the Jones Act.
		
	Negative Covenants:	  	The credit agreement governing the Credit Facility will include such negative covenants (certain of which will be subject to materiality thresholds, baskets and other exceptions
and qualifications to be mutually agreed upon in the Financing Documentation) applicable to the Loan Parties and their respective subsidiaries as are usual and customary for Agent’s financings of this type, including the following: limitations
on: indebtedness; liens; fundamental changes (other than permitted acquisitions); disposal of assets; change of name; nature of business; prepayments and amendments; change of control; distributions; accounting methods; investments;
transactions

  
 7 

			
		  	 with affiliates; use of proceeds; and restricted agreements; provided that in any event the Borrower shall be permitted
to:
  

(i)      acquire new vessels or vessels currently under charter;

 
 (ii)     utilize
CCF and Title XI programs if available in connection with additions or improvements to the existing fleet of vessels; and
  

(iii)   consummate the Transactions; provided, further, that:

 
 (a)     conversions
to common equity (or to instruments representing rights with respect to common equity) under the Convertible Secured Notes shall be unrestricted;
  

(b)     payment of Existing Notes outstanding after the Closing Date (after giving
effect to the Transactions plus accrued and outstanding interest thereon), in accordance with the terms thereof shall be unrestricted, scheduled amortization of the Secured Notes shall be permitted and repurchases of the Secured Notes and the
Convertible Secured Notes made from the proceeds of dispositions of Notes Priority Collateral shall be unrestricted;
  

(c)     distributions, investments, acquisitions, and repurchases (excluding repurchases
made from the proceeds of dispositions of Notes Priority Collateral) of the Secured Notes and the Convertible Secured Notes shall be unrestricted as to amount if (1) both before and after giving effect to such event, each of (x) pro forma Excess
Availability for the 30 day period ending on the date of such event and (y) Excess Availability on the date of such event, plus, in each case, so long as there are no outstanding Advances, the Liquidity Amount (defined below), is not less
than $40,000,000, and (2) the pro forma Fixed Charge Coverage Ratio (defined below) is greater than 1.00 to 1.00; and
  

(d)     (1) the issuance of unsecured notes to fund non-pro rata stock buyback(s), in
accordance with the Parent’s organizational documents, in an amount not to exceed the minimum amount necessary to ensure compliance with Jones Act foreign ownership requirements, shall be permitted and (2) redemptions of Parent stock in
accordance with the Parent’s organizational documents, in an amount not to exceed the minimum amount necessary to ensure compliance with Jones Act foreign ownership requirements, shall be permitted so long as (A) both before and after giving
effect to such

  
 8 

			
		  	 redemption, each of (x) pro forma Excess Availability for the 30 day period ending on the date of such redemption
and (y) Excess Availability on the date of such redemption, plus, in each case, so long as there are no outstanding Advances, the Liquidity Amount, is not less than $40,000,000, and (B) the aggregate amount of such redemptions during the term
of the Credit Facility does not exceed $15,000,000.
  
 “Liquidity
Amount” means, with respect to any event described in clause (c) or (d)(2) immediately above, an amount up to $10,000,000, which amount shall be on deposit in an account with WFCF subject to a first priority perfected security interest
in favor of the Agent and available for withdrawal by the Borrower no earlier than 5 business days after the applicable event.
  

“Fixed Charge Coverage Ratio” means (a) adjusted EBITDA (with pro forma adjustment for acquisitions and dispositions (including
discontinuances) of lines of business, entities or material assets) for the relevant 12-month period minus unfinanced capital expenditures minus cash taxes (to the extent added back in the calculation of adjusted EBITDA) minus
distributions on account of equity divided by (b) cash interest expense (net of interest income and other cash offsets to interest expense under GAAP, with pro forma adjustment to exclude interest expense attributable to any debt
converted to equity or repurchased or repaid (other than repayments of revolving debt that do not permanently reduce commitments therefor and short-term debt and repurchases or repayments of notes and other long-term debt which are refinanced or
replaced) plus the scheduled principal amount of debt payments.

		
	Collateral Reporting:	  	Collateral reporting shall include, without limitation, a Borrowing Base report, a summary accounts receivable aged trial balance, and a summary accounts payable aging report of
the Borrower and its subsidiaries, each in form to be mutually agreed upon in the Financing Documentation and delivered monthly; provided that weekly reporting shall be required upon the occurrence and continuance of any Trigger Event. After
more frequent reporting has been implemented (other than as a result of the occurrence and continuance of an event of default), and until another Trigger Event, if ever, next occurs, the frequency of Collateral reporting shall revert to monthly if
Excess Availability has been greater than the Trigger Amount for 45 consecutive days.
		
	Financial Covenants:	  	The Parent, on a consolidated basis, shall be required to maintain a minimum Fixed Charge Coverage Ratio of 1.00 to 1.00, to be tested monthly on a trailing twelve-month basis
only upon the occurrence of a Trigger Event; provided that if, after the occurrence of such Trigger Event, no default exists and Excess Availability has been greater than the
Trigger

  
 9 

			
		  	Amount for 45 consecutive days, then the requirement to maintain a minimum fixed charge coverage ratio shall cease until (if ever) another Trigger Event next
occurs.
		
	Events of Default:	  	The credit agreement governing the Credit Facility will include events of default (certain of which will be subject to materiality thresholds, exceptions and grace periods to be
mutually agreed in the Financing Documentation) as are usual and customary for Agent’s financings of this type, including: non-payment of obligations; non-performance of covenants and obligations; material judgments and penalties (with
appropriate carve-outs for the resolution of anti-trust matters that have been disclosed to WFCF); bankruptcy or insolvency; any restrainment against all or a material portion of business affairs; default on other material debt (including secured
hedging agreements); breach of any representation or warranty; limitation or termination of any guarantee with respect to the Credit Facility; impairment of security; certain material ERISA events; actual or asserted invalidity or unenforceability
of any Financing Documentation or liens securing obligations under the Financing Documentation; chartered vessel document default consistent with the corresponding event of default in the Existing Credit Agreement; attachment/levy default with
respect to vessels consistent with the corresponding event of default in the Existing Credit Agreement; and revocation of Jones Act status or suspension of service under the Jones Act.
		
	Conditions Precedent to Closing:	  	The conditions set forth on Annex B.
		
	Conditions Precedent to all Credit Extensions:	  	Each extension of credit under the Credit Facility shall be subject to satisfaction of the following conditions precedent: (a) all of the representations and warranties in the
Financing Documentation shall be true and correct in all material respects (except to the extent that such representation and warranty is qualified by materiality) as of the date of such extension of credit (unless it expressly relates to an earlier
date), (b) no default or event of default under the Credit Facility shall have occurred and be continuing or would result from such extension of credit and (c) Excess Availability under the then applicable Borrowing Base as of the date of such
extension of credit shall equal or exceed the amount of the requested extension of credit.
		
	Assignments:	  	Each Lender shall be permitted to assign its rights and obligations under the Financing Documentation, or any part thereof, to any person or entity with the consent of the Agent
and the Borrower (such consent not to be unreasonably withheld or conditioned); provided that no consent by the Borrower shall be required for assignments (a) to another Lender, an affiliate of a Lender or an approved fund
under

  
 10 

			
		  	 common control with a Lender or (b) upon the occurrence and during the continuance of an event of default.

 
 The definitive credit agreement in respect of the Credit Facility will contain
customary “yank-a-bank” provisions in respect of (i) non-consenting Lenders (in the case of amendments and waivers that would otherwise require the consent of 100% of the Lenders or affected Lenders), (ii) defaulting Lenders and (iii)
Lenders that result in increased costs to the Borrower.

		
	Yield Protection, Defaulting Lenders, Taxes and Other Deductions:	  	The Credit Facility will contain customary provisions for facilities of this kind, including, without limitation, in respect of defaulting Lenders and cash collateral
requirements, breakage and redeployment costs, increased costs, funding losses, capital adequacy, illegality and requirements of law. All payments shall be free and clear of any present or future taxes, withholdings or other deductions whatsoever
(other than customary exceptions to be agreed).
		
	Governing Law and Forum:	  	State of New York
		
	Counsel to the Agent:	  	Winston & Strawn LLP

  
 11 

 Annex A 

Interest Rates and Fees 
  

							
	Interest Rate Options:	  	The Borrower may elect that the loans bear interest at a rate per annum equal to:
		
		  	(a) the Base Rate plus the Applicable Margin; or
		
		  	(b) the LIBOR Rate plus the Applicable Margin.
		
		  	As used herein:
		
		  	The “Base Rate” means the greatest of (i) the prime lending rate as publicly announced from time to time by Wells Fargo Bank, National
Association, (ii) the Federal Funds Rate plus  1/2%
and (iii) the daily LIBOR Rate for a one month Interest Period (as defined below) plus 1.00%.
		
		  	The “LIBOR Rate” means the rate per annum appearing on Bloomberg L.P.’s (the “Service”) Page BBAM (official BBA
USD Dollar Libor Fixings) (or on any successor or substitute page of such Service or any successor to or substitute for such Service 2 business days prior to the commencement of the requested interest period, adjusted by the reserve percentage
prescribed by governmental authorities as determined by the Agent. The LIBOR Rate shall be available for interest periods of 1, 2, 3 or 6 months, and 9 or 12 months, if available to, and consented to by, each Lender.
		
		  	“Applicable Margin” means, as of any date of determination, the margin based upon the pricing grid set forth below determined on a monthly
basis; provided that the Applicable Margin shall be increased by the applicable Leverage Premium (as defined below):

 

									
	 Average Quarterly
Excess Availability
	 	Applicable Margin
for LIBOR Rate
Loans	 	 	Applicable
Margin for
Base Rate
Loans	 
			
	> $60,000,000	 	 	2.25	% 	 	 	1.25	% 
			
	 > $45,000,000 but
 £ $60,000,000
	 	 	2.50	% 	 	 	1.50	% 
			
	 > $30,000,000 but
 £ $45,000,000
	 	 	2.75	% 	 	 	1.75	% 
			
	£ $30,000,000	 	 	3.00	% 	 	 	2.00	% 

  
 A-1

					
		  	 The initial Applicable Margin shall be 2.50% for LIBOR Rate Loans and 1.50% for Base Rate Loans for the period from the
Closing Date through the date the Agent receives the Borrowing Base report for the third month following the Closing Date.
  
 “Leverage Premium” means, as of any date of determination, the premium based upon the Leverage Ratio (to be defined in the Financing Documentation as funded debt divided by
adjusted EBITDA) pricing grid set forth below:

  

					
	Leverage Ratio	 	Leverage Premium	 
		
	< 4.00x	 	 	0.00	% 
		
	3 4.00x but < 5.00x	 	 	0.25	% 
		
	3 5.00x but < 6.00x	 	 	0.50	% 
		
	3 6.00x	 	 	0.75	% 

  

					
	Interest Payment Dates:	  	 In the case of loans bearing interest based upon the Base Rate (“Base Rate Loans”), monthly in
arrears.
  
 In the case of Loans bearing interest based upon the LIBOR Rate
(“LIBOR Rate Loans”), on the last day of each relevant interest period and, in the case of any interest period longer than three months, on each successive date three months after the first day of such interest
period.

		
	Letter of Credit Fees:	  	(a) A letter of credit fee for the account of the Lenders in an amount equal to the Applicable Margin for LIBOR Rate Loans per annum times the undrawn amount of each
Letter of Credit, payable monthly in arrears, (b) a fronting fee for the account of WFCF in an amount equal to 0.125% per annum times the stated amount of each Letter of Credit, payable in advance in connection with the issuance of each Letter of
Credit and (c) the other customary charges imposed by the L/C Issuer.
		
	Default Rate:	  	(a) Automatically upon the occurrence and during the continuance of any payment event of default or upon a bankruptcy or insolvency event of default or (b) upon the
occurrence and during the continuance of any other event of default, but only at (and following) the election of the Required Lenders (as defined below), all outstanding principal, fees and other obligations under the Credit Facility shall bear
interest at a rate per annum of 2% in excess of the rate then applicable to such obligations.

  
 A-2

			
		  	“Required Lenders” means, as of any date of determination, Lenders having in the aggregate more than 50% of the aggregate amount of the commitments under
the Credit Facility (or, if such commitments shall have been terminated, 50% of the aggregate amount of the outstanding Advances and Letters of Credit exposure) at such time; provided, however, that at any time there are two or more
Lenders, “Required Lenders” must include at least two Lenders; provided further, that if any Lender shall be a defaulting Lender at such time, then the unfunded commitments under the Credit Facility of such defaulting Lender
shall be excluded from the determination of Required Lenders.
		
	Rate and Fee Basis:	  	Per annum rates for LIBOR Rate Loans shall be calculated on the basis of a year of 360 days and the actual number of days elapsed. Per annum rates for Base Rate
Loans, if the Base Rate is based on the prime lending rate, shall be calculated on the basis of a year of 365 days.
		
	Commitment Fee:	  	A per annum fee in an amount equal to (a) if average quarterly Usage is greater than 50% of the Maximum Credit Amount, 0.375% and (b) if average quarterly Usage is less
than or equal to 50% of the Maximum Credit Amount, 0.50%, times the unused portion of the Credit Facility, which fee shall be due and payable monthly in arrears.
		
	Audit, Appraisal and Examination Fees:	  	The Borrower would be required to pay (a) a fee of $1,000 per day, per auditor, plus reasonable out-of-pocket expenses for each field audit of the Loan Parties performed by
personnel, employed by the Agent, (b) a fee of $1,000 per day, per applicable individual, plus reasonable out-of-pocket expenses in connection with any modifications to the electronic collateral reporting system established for the Borrower and its
subsidiaries, and (c) the actual charges paid or incurred by the Agent if it elects to employ the services of one or more third persons to perform field audits or to appraise the Collateral, or any portion thereof; provided that the Borrower
shall not be obligated to reimburse for more than 2 audits and 1 appraisal during any calendar year; provided, further that (i) the total number of audits shall be increased by 1 in any twelve month period after the occurrence and
during the continuation of a Trigger Event and (ii) upon the occurrence and during the continuation of an event of default, there shall be no limit on the number of audits which may be conducted by the Agent upon reasonable prior notice, each at the
expense of the Loan Parties.

  
 A-3

 Annex B 

Conditions Precedent 
 The availability of the Credit Facility is subject to the satisfaction of each of the following conditions precedent: 
 (a) (i) Completion of lien searches and of customary “bring down” due diligence, with results reasonably satisfactory to the Agent (provided that in the case of lien searches, such
results shall be reasonably satisfactory to the Agent, solely with respect to ABL Priority Collateral), and (ii) completion of a confirmatory field exam of the Loan Parties and the Collateral in accordance with the Agent’s customary
procedures and practices and as otherwise required by the nature and circumstances of the businesses of the Loan Parties and the Collateral, reflecting that the Borrower has Excess Availability, together with cash on hand after giving effect to the
consummation of the Transactions on the Closing Date, of at least $40,000,000 as required by clause (g) below; 
 (b)
Delivery of Financing Documentation customary for transactions of this type duly executed by the Loan Parties (or applicable third parties as the case may be) including a credit agreement, security agreements, control agreements, landlord waivers
for leased locations containing books and records (provided that to the extent such landlord waivers are not received by the Closing Date or at any time thereafter, a rent reserve of one month shall be established against the Borrowing Base
for each leased location at which books and records are maintained and such landlord waivers are not obtained), mortgages, vessel mortgages, pledge agreements, intercreditor agreements and subordination agreements, and receipt of other documentation
customary for transactions of this type including legal opinions, officers’ certificates, solvency certificates, corporate documents, and borrowing notices, and instruments and other documents necessary to evidence or perfect the Agent’s
first priority security interest in the ABL Priority Collateral and fourth priority security interest in the Notes Priority Collateral, and certificates of insurance policies and/or endorsements naming the Agent as additional insured or loss payee,
as the case may be, to the extent required under the Financing Documentation, all in form and substance reasonably satisfactory to the Agent; provided that (i) control agreements may be delivered and executed within time periods (not
less than 60 days (or such longer period as the Agent may agree), unless a Trigger Event shall have occurred on or prior to such date, in which case such documents shall be delivered within 5 business days thereafter (or such longer period as the
Agent may agree)) following the Closing Date to be mutually agreed upon in the Financing Documentation and (ii) instruments, documents, filings and recordations evidencing or pertaining to security interests in the Notes Priority Collateral,
including landlord waivers (other than those referred to above for locations containing books and records), mortgages, vessel mortgages and chassis lien recordations, shall be executed in favor of the Agent and delivered only to the extent, and
within the time periods, required in connection with the Secured Notes and Convertible Secured Notes; 
 (c) Receipt of a
customary payoff letter, in form and substance reasonably satisfactory to the Agent, from Existing Agent to the Agent respecting the amount necessary to repay in full all of the obligations of the Parent and its subsidiaries owing to Existing Agent
and releasing all of the liens existing in favor of Existing Agent in and to the assets of the Parent and its subsidiaries; 

(d) Receipt of evidence of corporate authority and certificates of status with respect to each Loan Party issued by the jurisdictions of
organization of each Loan Party, all in form and substance reasonably satisfactory to the Agent; 
 (e) Receipt of certified
copies of each Loan Party’s governing documents and copies of material contracts; 

  
 B-1

 (f) Completion of customary Patriot Act searches, OFAC/PEP searches and customary individual
background checks for the Loan Parties and their senior management, including key principals, the results of which are satisfactory to the Agent and the Lenders; 
 (g) Receipt of a certificate from the Borrower, calculating the Borrowing Base as of the most recent month-end occurring at least 10 days prior to the Closing Date (based on the confirmatory field exam
conducted within a reasonable period of time prior to the Closing Date) and certifying that Excess Availability under the Credit Facility, after giving effect to the initial use of proceeds on the Closing Date (including the payment of all fees and
expenses (including Expenses)), together with cash on hand after giving effect to the consummation of the Transactions on the Closing Date, is not less than $40,000,000; 
 (h) Receipt of all governmental and third party approvals necessary, if any, in connection with the Transactions, which shall all be in full force and effect, unless the absence of any such approval could
not reasonably be expected to have a material adverse effect on the Borrower and its subsidiaries; 
 (i) (i) Except as
specifically set forth on Schedule I attached hereto, there shall not have occurred since December 26, 2010, a material adverse change in or material adverse effect on the business, affairs, properties, operations, condition (financial
or otherwise), assets or liabilities (whether actual or contingent) of the Parent and its subsidiaries, taken as a whole (a “Material Adverse Change”) and (ii) except as specifically set forth in Part II, item 1 of the
Parent’s quarterly report on Form 10-Q for the quarter ended on June 26, 2011 (the “10Q Report”), there shall not be any material pending litigation or, to the knowledge of the Loan Parties, litigation threatened in
writing, proceeding, bankruptcy or insolvency, injunction, order or claim with respect to the Parent and its subsidiaries which has had or could reasonably be expected to have a material adverse effect on the business, affairs, properties,
operations, condition (financial or otherwise), assets or liabilities (whether actual or contingent) of the Parent and its subsidiaries, taken as a whole; 
 (j) The pro forma capital and ownership structure and the shareholding arrangements of the Parent and its subsidiaries after giving effect to the Transactions shall be substantially consistent with the
description thereof delivered to the Agent on or prior to the date of the Commitment Letter; 
 (k) Receipt, in form reasonably
satisfactory to the Agent, of (i) copies of interim unaudited financial statements for the most recent month-end occurring within 30 days prior to the Closing Date, (ii) financial projections for the Parent and its subsidiaries prepared by
management of the Parent, which shall be quarterly from the Closing Date through the end of the first four fiscal quarters following the Closing Date and annually thereafter for the term of the Credit Facility, and (iii) an opening pro forma
balance sheet of the Parent and its subsidiaries as of the date of the most recent unaudited financial statements referred to in clause (i), but giving effect to the Transactions; 

(l) (i)(A) The First Lien Secured Notes in a principal amount of $225,000,000, (B) the Second Lien Secured Notes in a principal
amount of $100,000,000 and (C) the Convertible Secured Notes in a principal amount of up to $280,000,000 shall have been issued on terms and conditions reasonably satisfactory to the Agent (it being understood that the terms of the Secured
Notes and the Convertible Secured Notes described in the “Summary of Proposed Terms and Conditions for Horizon Lines, Inc.” dated August 26, 2011 relating to the Transactions (the “Transaction Term Sheet”)
delivered to the Agent are satisfactory to the Agent) and the Parent and/or the Borrower shall have received the net proceeds of the Secured Notes (other than the portion thereof constituting loans under the Bridge Loan Facility converted to Secured
Notes in accordance with the terms hereof) substantially simultaneously with the closing and effectiveness of availability under the Credit Facility, and (ii) all or substantially all (but in no event shall more than $20,000,000 in principal
amount of the Existing Notes remain outstanding on the Closing Date after giving effect to the Transactions and any remaining Existing Notes 

  
 B-2

 
shall remain unsecured and shall be amended to remove substantially all of the restrictive covenants and certain events of default thereunder other than the required repayment thereof) of the
$330,000,000 in principal amount of the Existing Notes shall have been exchanged for the Convertible Secured Notes and approximately $50,000,000 of common stock of the Parent, such exchange to be on substantially the terms set forth in the
Transaction Term Sheet, with such modifications as the Agent may approve (such approval not to be unreasonably withheld or delayed); and 
 (m) All fees and reasonable out-of-pocket expenses that have been properly documented and are in each case due and payable to WFCF, the Agent and counsel to the Agent on the Closing Date pursuant to the
Fee Letter, the Commitment Letter and the Term Sheet shall have been paid. 

  
 B-3

 Schedule I 

Exceptions to Material Adverse Change 
 The following shall not be construed, individually or in the aggregate, as constituting a Material Adverse Change: 
 1. The negative changes, if any, in the financial position and results of operations of the Parent since December 26, 2010, as reflected in Part I, item 1 of the 10Q Report. 

2. The performance of the business and operations of the Parent and its subsidiaries in a manner materially consistent with the
Parent’s financial projections previously delivered to the Agent and dated August 3, 2011 (for the avoidance of doubt, any decrease of projected adjusted trailing 12-month EBITDA from the amounts reflected in such projections of not more
than 22.75% would be considered materially consistent). 
 3. Notice of the delisting of the Parent’s shares so long as the
Parent is diligently pursuing a plan of action with the New York Stock Exchange to avoid a delisting. 
 4. The amendments to
the Existing Credit Agreement contained in the amendments thereto dated as of March 9, 2011 and June 24, 2011 and any amendment permitting the Bridge Loan Facility consistent with the terms hereof and the Transaction Term Sheet, and the
payment of fees and expenses in connection with such amendments and in connection with the related efforts prior to the date hereof to obtain consents from the holders of the Existing Notes. 

5. (a) The discontinuance (and any divestiture) of the logistics operations of the Parent and its subsidiaries and (b) other items
disclosed in writing to, and agreed to by, the Agent prior to the date of the Commitment Letter. 
 6. Any disposition disclosed
in writing to, and agreed to by, the Agent prior to the date of the Commitment Letter. 
 7. (a) Entry into and borrowings under
the Bridge Loan Facility as described herein and consistent with the Transaction Term Sheet, (b) the ongoing discussions with holders of the Existing Notes to restructure the obligations thereunder and the agreement with such holders to engage
in the transactions described in Transaction Term Sheet, and (c) other items disclosed in writing to, and agreed to by, the Agent prior to the date of the Commitment Letter. 

8. (a) Any workforce reductions (and any related restructuring costs) occurring prior to the date hereof and disclosed in Part I, item 1
of the 10Q Report under the heading “Restructuring”, (b) the Parent’s senior management changes occurring after December 26, 2010 described in Part II, item 7 of the Parent’s annual report on Form 10-K for the year
ended December 26, 2010 (the “10K Report”) under the heading “Recent Developments” and (c) the separation and compensation obligations relating to the Parent’s former CEO, interim CEO and any
permanent CEO disclosed in Part I, item 1 and Party I, item 7 of the 10K Report and Part I, item 2 of the 10Q Report under the heading “Executive Overview”. 
 9. (a) The existence of the litigation matters, judgments and settlements, and the payments of the respective amounts of such judgments and settlements, and the payment of legal fees and expenses incurred
in connection with such matters, judgments and settlements, described in Part II, item 1 of the 10Q Report, the settlement of which such non-antitrust litigation matters does not exceed $7.5 million in the aggregate and (b) settlement and other
similar items disclosed in writing to, and agreed to 

  
 S-1

 
by, the Agent prior to the date of the Commitment Letter, in amounts less than or equal to the amounts disclosed in writing to, and agreed to by, the Agent prior to the date of the Commitment
Letter. 
 10. The contraction in liquidity described in Part I, item 2 of the 10Q Report under the heading “Liquidity
Outlook”. 
 Notwithstanding anything herein to the contrary, the foregoing shall not be construed as precluding any material worsening of
any of the circumstances or conditions described in the foregoing clauses which worsening causes a material adverse change in or has a material adverse effect on the business, affairs, properties, operations, condition (financial or otherwise),
assets or liabilities (whether actual or contingent) of the Parent and its subsidiaries, taken as a whole, from constituting a Material Adverse Change. 

  
 S-2

 Annex C 

Eligible Accounts 
 “Eligible Accounts” means those accounts created by any Loan Party in the ordinary course of its business, that arise out of such Loan Party’s sale of goods or rendition of services,
that comply with each of the representations and warranties respecting Eligible Accounts made in the Financing Documentation, to the extent not excluded by virtue of one or more of the excluding criteria set forth below; provided,
however, that such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to address the results of any field exam performed by Agent from time to time after the Closing Date. In determining the amount to be
included, Eligible Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Accounts shall not include the following: 
 (a) accounts that the account debtor has failed to pay within 90 days of original invoice date or accounts with payment terms of more than 60 days; provided, however, that accounts with
payment terms greater than 60 days will not be excluded from Eligible Accounts to the extent the aggregate amount of such accounts does not exceed $1,000,000, 
 (b) accounts owed by an account debtor (or its affiliates) where 50% or more of all accounts owed by that account debtor (or its affiliates) are deemed ineligible under clause (a) above, 

(c) accounts with respect to which the account debtor is an affiliate of a Loan Party or an employee or agent of a Loan Party,

 (d) accounts that are not payable in U.S. dollars, 
 (e) accounts with respect to which the account debtor (i) does not maintain its chief executive office in the United States, or (ii) is not organized under the laws of the United States or any
state thereof, or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality
thereof, except in any such case, to the extent (y) the account is supported by a letter of credit satisfactory to Agent (as to form, substance, and issuer or domestic confirming bank) in its Permitted Discretion that has been delivered to
Agent and is directly drawable by Agent, or (z) the account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to Agent in its Permitted Discretion, 

(f) accounts with respect to which the account debtor is either (i) the United States or any department, agency, or instrumentality
of the United States (exclusive, however, of accounts with respect to which a Loan Party has complied, to the reasonable satisfaction of Agent, with the Assignment of Claims Act, 31 USC §3727, or have otherwise made arrangements with respect to
such accounts satisfactory to Agent in its Permitted Discretion), or (ii) any state of the United States (exclusive, however, of accounts with respect to which a Loan Party has made arrangements with respect to such accounts satisfactory to
Agent in its Permitted Discretion), 
 (g) accounts with respect to which the account debtor is a creditor of any Loan Party,
has a right of setoff or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the account, in each case solely to the extent of such claim, right of setoff, or dispute, 

(h) accounts with respect to an account debtor whose total obligations owing to a Loan Party exceed 10% (except, in the case of Wal-Mart,
such percentage shall be 20%) (such percentage, as applied to a particular account debtor, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of such account debtor deteriorates) of all Eligible Accounts, to the
extent of the obligations owing by such account debtor in excess of such percentage; provided, however, 

  
 C-1

 
that, in each case, the amount of accounts that would otherwise be Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent based on all of
the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 
 (i)
accounts with respect to which the account debtor is subject to an insolvency proceeding, is not solvent, has gone out of business, or as to which a Loan Party has received notice of an imminent insolvency proceeding or a material impairment of the
financial condition of such account debtor, 
 (j) accounts, the collection of which, Agent, in its Permitted Discretion,
believes to be doubtful by reason of the account debtor’s financial condition, 
 (k) accounts that are not subject to a
valid and perfected first priority lien of Agent (except for state and federal tax liens so long as any such lien (i) is permitted under the loan documents, (ii) has priority by operation of applicable law and (iii) to extent that
(A) any Loan Party has knowledge of such lien (other than an inchoate lien) or (B) the related taxes are overdue and unpaid or (C) the applicable tax authority has recorded or filed such lien, such Loan Party shall promptly notify the
Agent, but in any event within 5 days thereof), 
 (l) accounts that are subject to a lien of any other person (other than a
person with whom the Agent has a satisfactory intercreditor agreement and other than specified permitted liens to be agreed, including liens imposed by statute or operation of law, but without limiting the rights of the Agent to establish reserves
with respect thereto in its Permitted Discretion), 
 (m) accounts with respect to which the services giving rise to such
account have not been performed and billed to the account debtor (it being understood that services giving rise to an account for shipment of ocean freight are deemed performed at such time as the vessel carrying such freight sets sail from the port
of departure), 
 (n) accounts with respect to which the account debtor is (i) a person named on the list of Specially
Designated Nationals maintained by OFAC or (ii) a country or a government, agency, organization or resident of a country that is subject to a sanctions program administered and enforced by OFAC, 

(o) accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of
performance by any Loan Party of the subject contract for goods or service (it being understood that services giving rise to an account for shipment of ocean freight are deemed performed at such time as the vessel carrying such freight sets sail
from the port of departure), 
 (p) accounts with payment terms requiring that cash payment be made on the date of the
performance of the underlying service, 
 (q) accounts associated with volume incentive discounts (such as GL#3440000), solely
to the extent of any such volume incentive discount agreed to by the Loan Parties and accrued against such accounts, 
 (r)
accounts with a remaining balance currently outstanding that is less than the original invoice amount, or 
 (s) accounts solely
to the extent cash has been received in payment of such accounts but unapplied to the specific invoices (such as amounts in GL#1539700). 

  
 C-2

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