Document:

exv10w1

EXHIBIT 10.1

I-FLOW CORPORATION

Summary of the

2009 Executive Performance Incentive Plan

Eligibility. The President and Chief Executive Officer, Executive Vice President and Chief
Operating Officer and Chief Financial Officer are the three executives eligible to receive cash and
equity awards under the incentive plan. All awards will be made pursuant to the I-Flow Corporation
Amended and Restated 2001 Equity Incentive Plan (the “Equity Plan”).

Objectives. In the plan, the compensation committee established 2009 target achievements
for the following criteria: (i) revenue (the “Revenue Target”) and (ii) net operating profit
(excluding interest income, interest expense, income taxes, stock-based compensation, InfuSystem
Holdings stock impairment/gain or loss, any board-of-directors-related expenses in excess of
$500,000 and changes to the reserves established in 2008 for litigation and insurance items) as a
percentage of revenue (the “Net Operating Profit Target”). Measuring actual 2009 results against
the Revenue Target and the Net Operating Profit Target will determine whether and to what extent
the plan objectives have been achieved.

Administrative. The amount of cash and equity awards available under the plan will depend
upon the extent to which the Revenue Target and the Net Operating Profit Target have been achieved,
with each factor having equal weight in the computation; provided, however, that
the compensation committee is retaining the discretion, in consultation with management, to reduce
any awards otherwise earned in highly unusual circumstances where the committee deems it necessary
and appropriate. In order to provide flexibility to management to operate and grow the company,
the performance criteria may also be adjusted for any major events during the year;
provided, however, that any adjustment must be approved in advance by the
compensation committee and the board of directors, and the plan impact of any such events will be
decided at the time of such approval. The allocation of the aggregate awards, if any, among the
officers will be determined by the compensation committee and the board of directors based on their
assessment of the contributions of each officer.

Award Minimums/Maximums. In order to receive an award under the plan, both (i) the
Revenue Target must be at least 94.83% achieved and (ii) the Net Operating Profit Target must be at
least 57.1% achieved. At this minimum achievement level, the cash incentive award for the three
officers combined is an aggregate of $250,000, and the equity incentive award for the three
officers combined is an aggregate of 40,000 shares of restricted stock, subject to the compensation
committee’s discretion to modify all awards as described above. If both the Revenue Target and the
Net Operating Profit Target are 100% achieved, the cash incentive award for the three officers
combined is, subject to the compensation committee’s discretion to reduce all awards as described
above, an aggregate of $1,000,000, and the equity incentive award for the three officers combined
is an aggregate of 150,000 shares of restricted stock. The maximum cash incentive award for the
three officers combined is an aggregate of $1,500,000, plus a future opportunity for an additional
$500,000 to be awarded and paid during 2011 contingent upon the earning of any award under the
company’s yet-to-be-determined 2010 Executive Performance Incentive Plan. The maximum equity
incentive award for the three officers combined is an aggregate of 200,000 shares of restricted
stock, plus a future opportunity for an additional 50,000 shares (the “Withheld Stock”) to be
granted and paid during 2011 contingent upon the granting of any award under the company’s
yet-to-be-determined 2010 Executive Performance Incentive Plan. For amounts earned above or below
the 100% performance level, the exact amount of the cash incentive awards and shares of restricted
stock available under the plan will be determined on a linear graduated scale.

Vesting of Equity Awards. Equity awards will consist of grants of restricted stock
pursuant to the Equity Plan. The restrictions will lapse and the shares will vest 50% on January
1, 2011 and 50% on January 1, 2012, with accelerated vesting pursuant to the Equity Plan upon a
change in control or in the event of the death or permanent disability of the executive;
provided, however, that any shares of Withheld Stock will vest 100% immediately
upon payment thereof as described in the prior paragraph.

Payment of Awards. After completion of the fiscal year, the compensation committee will
review the plan objectives and results and the recommendations of executive management. The
independent directors of the board of directors will assess the performance of the President and
Chief Executive Officer, the Executive Vice President and Chief Operating Officer and the Chief
Financial Officer and will, upon recommendation from the compensation

 

 

committee, approve any cash and equity incentive awards. Earned cash incentive awards are
typically paid each year in February. To be eligible for awards under the plan, an executive must
be on the Company’s payroll through February 28, 2010; provided, however, that, in
the event of a consummation of a sale of I-Flow Corporation in 2009 or the death or permanent
disability of an executive during 2009, awards will be deemed earned and payable, with no
proration, at the higher of (i) the year-to-date actual percentage achievement to plan, or (ii)
100% of the full plan-year target awards. An executive may also be entitled to an award under the
plan, pursuant to the terms of his employment agreement with the Company, in the event that he is
terminated without cause after an award has been earned but before it has been paid.exv10w1

EXHIBIT 10.1

2009 Annual Incentive Plan

Land Based and Vessel Employees

The performance goals for 2009 are based on the 2009 budget approved by the Board. These goals
reflect the Board of Directors and CEO’s expectations for performance and accountability of the
leadership team.

For 2009, the weighting of the Financial Measures is:

	 	•	 	EPS: 25%
	 
	 	 	 	The definition of Earnings Per Share (“EPS”) is net income divided by the average number of
fully diluted shares outstanding from continuing operations. EPS is the most common way
that public companies are measured.
	 
	 	•	 	EBITDA: 25%
	 
	 	 	 	Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) is a commonly
used measure to determine the financial performance from operations.
	 
	 	•	 	Cash Flow from Operations: 25%
	 
	 	 	 	Cash flow is critical to our Company in order for us to meet our expense, debt covenants,
make capital investments and pay the interest and principal on corporate debt. Cash flow
from Operations (“CFO”) is a GAAP-defined measure which can be found on our Statement of
Cash Flows. It can be defined as net income adjusted for non-cash transactions (the most
significant of which are depreciation/amortization and share-based compensation). CFO is
also adjusted for changes in working capital. CFO specifically excludes cash flow devoted
to investing (such as CAPEX) and cash flow resulting from financing (debt service and
equity transactions).

For 2009, the weighting of the Business Goals is:

	 	•	 	Safety: 10%
	 
	 	 	 	It is critical that we continue to provide a safe environment for all employees. Safety
will be measured by the incident rate which is defined as the number of recordable injuries
× 200,000 divided by the number of employee hours worked. This measurement/goal includes
the performance of our sub-contractors.
	 
	 	•	 	Environmental Safety (Releases): 5%
	 
	 	 	 	We are committed to conducting our businesses in an environmentally responsible and
proactive manner, for both the safety of our employees as well as the communities in which
we operate. Environmental Safety will be measured by the number of releases and the number
of gallons released as reported to the NRC (National Response Center). This
measurement/goal includes the performance of our sub-contractors.

American Commercial Lines Inc.

 

 

	 	•	 	Liquid Transportation Contribution Per Barge Day: 2.5%
	 
	 	 	 	Contribution per barge day is the measure of the culmination of sales, operating and
logistical efficiencies. It provides the final measure of how well we have coordinated our
sales and operating functions to provide the highest margins possible. The liquid
transportation measure represents liquid transportation related revenue less associated
variable operating costs divided by active barge days within the period being measured for
all activities associated with both our 10k and oversized tanker fleet.
	 
	 	•	 	Dry Transportation Contribution Per Barge Day: 2.5%
	 
	 	 	 	Contribution per barge day is the measure of the culmination of sales, operating and
logistical efficiencies. It provides the final measure of how well we have coordinated our
sales and operating functions to provide the highest margins possible. The dry
transportation measure represents dry related transportation revenue less associated
variable operating costs divided by active barge days within the period being measured for
all activities associated with both our open hopper and covered hopper fleet.
	 
	 	•	 	Jeffboat hours worked per ton of steel: 5%
	 
	 	 	 	The total direct labor hours worked for the barges built (excluding special vessels) in the
period divided by the total tons of steel used in the manufacturing of those barges.

Plan Administration

Eligibility Criteria

	 	•	 	Full-time active salaried and certain hourly (vessel and land-based) — this applies to
land and vessel based non-represented hourly employees and represented employees to the
extent the plan has been negotiated into applicable bargaining agreements. This plan does
not apply to employees of the Professional Services segment of our business.
	 
	 	•	 	Hire date on or before September 30, 2009.
	 
	 	•	 	Employed by ACL or one of its subsidiaries at time the incentive awards are paid.
	 
	 	•	 	Individual performance rated at a satisfactory level or higher.
	 
	 	•	 	Employees that change eligibility levels during the year will have their award prorated
based on the base salary earned at each award level.

Award Opportunities

Each performance measure has a corresponding percentage of the target award opportunity. Some
incentive can still be earned if performance is close to, but falls short of the goals. Also,
higher incentives may be earned if goals are exceeded. Therefore, if actual performance falls
between any of the defined levels, the award opportunities will be calculated proportionately. The
calculations will be based on GAAP financials unless an exception (plus or minus) is approved by
the Compensation Committee.

	 	•	 	Minimum performance (80% attainment) pays 50% of the target opportunity.
	 
	 	•	 	Target performance (100% attainment) pays 100% of target opportunity.
	 
	 	•	 	Superior performance (120% attainment) pays 150% of the target opportunity.

At least one of the “financial measures” (EPS, EBITDA and Cash Flow from Operations) must meet
the minimum level to trigger any AIP payout.

American Commercial Lines Inc.

 

 

Award Calculations

The awards will be calculated based on the following formula:

2009 Base Salary Earnings × Target Award Opportunity × Performance Score for Each Goal.

Actual base salary earnings are defined as only the base compensation earned from January 1 through
December 31. In other words, the AIP payout will be prorated based on actual salary earnings for
the year. The overall performance score is determined by multiplying the achievement levels of the
financial and business objectives by their respective weighting and
adding them together.

The awards may be adjusted upward or downward by up to 20% based on performance. However, the net
of these adjustments may not increase the total bonus award.

Timing of Payment

Earned disbursement of the 2009 bonus amounts will occur after the 2009 financial results have been
tabulated, Ernst &Young LLP has finished its audit and the Audit Committee has signed-off on the
results of the audit; estimated to be completed by March 15, 2010. Also, all payments must be
approved in advance by the Compensation Committee of the Board of Directors. In all events, bonus
amounts will be paid no later than December 31, 2010, with respect to the 2009 bonus program.

Administration

The Compensation Committee of the Board of Directors has the full power, authority and discretion
to construe, interpret and administer this bonus program. The Compensation Committee may delegate
this authority to any appropriate person or persons and such delegates shall have all the powers
the Compensation Committee would have if it had acted itself. As a condition of eligibility to
participate in this bonus program, a participant must accept that all determinations of the
Compensation Committee or any of its delegates will be final, conclusive and binding.

Amendment

The Compensation Committee, in its sole discretion, may, at any time with or without notice, amend,
modify, suspend or terminate this bonus program, including the right to suspend or eliminate some
or all payments under this bonus program at any time.

Assignment

Payments under this bonus program may not be assigned or alienated.

Applicable Law

This document shall be governed by the laws of the State of Indiana.

No Employment Rights

Nothing contained in this bonus program shall be construed as a contract of employment between ACL
or its subsidiaries and a participant or as a right of any participant to be continued in the
employment of ACL or its subsidiaries, or as a limitation of the right of ACL or its subsidiaries
to discharge any of its employees with or without cause.

American Commercial Lines Inc.

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