Document:

exv10w3

 

Exhibit 10.3

AMERICAN COMMERCIAL LINES INC.

STOCK OPTION AGREEMENT

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

W I T N E S S E T H:

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

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

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

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

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

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

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

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

-1-

 

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

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

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

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

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

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

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

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

 

 

     8. Method of Exercising Options.

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

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

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

          (d) The Optionee agrees that no later than the date as of which an amount first becomes
includible in his gross income for federal income tax purposes with respect to the Option, the
Optionee shall pay to the Company, or make arrangements satisfactory to the Company regarding the
payment of, any federal, state, local or foreign taxes of any kind required

 

 

by law to be withheld with respect to such amount. Withholding obligations may be settled
with Common Stock, including Common Stock that is acquired upon exercise of the Option, having an
aggregate Fair Market Value not in excess of the amount determined by applying the minimum
statutory withholding rate. The obligations of the Company under this Agreement and the Plan shall
be conditional on such payment or arrangements, and the Company, its Affiliates and Subsidiaries
shall, to the extent permitted by law, have the right to deduct any such taxes from any payment
otherwise due to the Optionee.

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

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

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

     12. Limitations. Nothing contained in this Agreement shall be construed as conferring
upon the Optionee the right to continue as an employee, or shall affect the right of the Company,
in its sole discretion, to terminate the Optionee’s employment at any time, with or without cause.

 

 

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

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

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

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

     17. Pronouns, Singular/Plural. Any use of any masculine pronoun shall include the
feminine and vice-versa, and any use of a singular shall include the plural or vice-versa, as the
context and facts may require.exv10w4

 

Exhibit 10.4

AMERICAN COMMERCIAL LINES INC.

RESTRICTED STOCK UNIT DEFERRAL PLAN

ARTICLE I

Purposes

          The purpose of this Restricted Stock Unit Deferral Plan is to provide certain officers and
directors of American Commercial Lines Inc. (the “Company”) or any of its subsidiaries the
opportunity to defer the receipt of shares of Common Stock otherwise issued upon the vesting of
Restricted Stock Units granted to such officers and directors under the American Commercial Lines
Inc. 2005 Stock Incentive Plan, the American Commercial Lines Inc. Equity Award Plan for Employees,
Officers and Directors or any other equity compensation plan adopted by the Company. All
capitalized terms used in the Plan shall have the meanings set forth in Article II.

ARTICLE II

Definitions

          “Board” means the Board of Directors of the Company.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Common Stock” means the common stock of the Company, par value $0.01.

          “Company” means American Commercial Lines Inc., a Delaware corporation.

          “Deferral Account” means a bookkeeping account in the name of a Participant maintained
pursuant to Article VI.

          “Deferral Election” means an election by an eligible officer or director, in accordance with
Article V, to defer the receipt of shares of Common Stock otherwise issued to such officer or
director upon the vesting of Restricted Stock Units held by such officer or director.

          “Deferred Stock Unit” means a bookkeeping unit credited to a Participant’s Deferral Account
having a value equal to one share of Common Stock.

          “Effective
Date” means January 16, 2006.

          “Participant” means an eligible officer or director who makes a Deferral Election under the
Plan.

          “Payment Date” shall have the meaning set forth in Section 7.1.

          “Plan” means this Restricted Stock Unit Deferral Plan.

 

 

          “Restricted Stock Units” means restricted stock units granted by the Company under an approved
equity compensation plan, each of which represents a right to receive a share of Common Stock upon
the satisfaction of applicable vesting conditions.

          “Termination Date” means the date on which a Participant ceases service as an employee or
director of the Company or any of its subsidiaries.

          “Trust” shall have the meaning in Article IX.

ARTICLE III

Administration

          The Plan shall be administered by the Board. The Board shall interpret the Plan and the
application thereof, and establish rules and regulations it deems necessary or desirable for the
administration of the Plan. All such interpretations, rules and regulations shall be final,
binding and conclusive. The Board may delegate administrative duties under the Plan to one or
more officers, employees or agents of the Company, as it shall deem necessary or advisable.

ARTICLE IV

Eligibility

          Each member of the Board and each officer of the Company or any of its subsidiaries who is
assigned to Grade Level 15 or above may elect to participate in the Plan by submitting a Deferral
Election in accordance with Article V.

ARTICLE V

Deferral of Awards

          Not later than the earlier to occur of (i) 30 days after the date on which a Restricted Stock
Unit award is granted to a Participant and (ii) 12 months prior to the first date on which any of
the Restricted Stock Units subject to such award are scheduled to vest, such Participant may elect,
in the form and manner prescribed by the Company, to defer the receipt of the shares of Common
Stock subject to such award to a date subsequent to the date on which such Restricted Stock Units
become vested. A separate election must be submitted with respect to each Restricted Stock Unit
award granted to such Participant.

ARTICLE VI

Deferral Accounts

          Section 6.1. Deferral Account. A Deferral Account shall be established and maintained
by the Company on behalf of each Participant who submits a Deferral Election in accordance with
Article V. Upon the vesting of each Restricted Stock Unit that is subject to a Participant’s
Deferral Election, such Participant’s Deferral Account shall be credited with a fully vested and
nonforfeitable Deferred Stock Unit. To the extent that Restricted Stock Units held by a
Participant are forfeited, any Deferral Election with respect to such Restricted Stock Units shall
terminate and have no effect, and no Deferred Stock Units shall be credited to the Participant’s
Deferral Account. If the Company shall pay a dividend on shares of Common Stock that are issued
and outstanding, an amount equal to the amount of the dividend payable on each share of

2

 

Common
Stock multiplied by the number of Deferred Stock Units credited to each Participant’s Deferral
Account as of the record date for such dividend shall be credited to such Participant’s Deferral
Account and be deemed invested in additional whole or partial Deferred Stock Units.

ARTICLE VII

Payment of Deferred Share Units

          Section 7.1. Time of Payment. In the Deferral Election submitted by a Participant
with respect to a Restricted Stock Unit award, the Participant shall elect the time at which the
Deferred Stock Units relating to such Restricted Stock Units shall be paid or commence (the
“Payment Date”). The Payment Date may be either a specified date occurring after the date on which
the Restricted Stock Units are scheduled to vest or the Participant’s Termination Date. The
payment shall be made or commence as soon as practicable after the Payment Date elected by the
Participant; provided that if Participant has elected his or her Termination Date as the Payment
Date, such payment shall be made or begin as soon as practicable after the six-month anniversary of
the Participant’s Termination Date.

          Section 7.2. Method of Payment. In the Deferral Election submitted by a Participant
with respect to a Restricted Stock Unit award, the Participant shall elect whether the Deferred
Stock Units relating to such Restricted Stock Units shall be paid in a single lump sum or in annual
installments over a period of up to 10 years.

          Section 7.3. Change in Payment Election. A Participant may elect to change the time
or method of payment of Deferred Stock Units credited to such Participant’s Deferral Account in
accordance with procedures prescribed by the Company; provided that such subsequent election shall
not be effective unless it (i) is received by the Company at least 12 months prior to the
previously scheduled Payment Date, (ii) does not take effect for at least 12 months after such
subsequent election is submitted and (iii) extends the Payment Date by at least five years.

          Section 7.4. Form of Payment. The payment with respect to Deferred Stock Units shall
be in whole shares of Common Stock, and any fractional shares shall be paid in cash.

ARTICLE VIII

Payment Upon Death of a Participant

          Section 8.1. Payment to Beneficiary. In the event a Participant dies before all
Deferred Stock Units credited to his or her Deferral Account have been paid, payment of the
remainder of the Participant’s Deferral Account shall be paid or shall commence to the
Participant’s beneficiary in a single lump sum payment as soon as administratively practicable
after the date of the Participant’s death.

          Section 8.2. Designation of Beneficiary. Each Participant may file with the Company a
written designation of one or more persons as such Participant’s beneficiary or beneficiaries (both
primary and contingent) in the event of the Participant’s death. Each beneficiary designation
shall become effective only when filed in writing with the Company during the Participant’s
lifetime on a form prescribed by the Company. The filing with the Company of a new beneficiary
designation shall cancel all previously filed beneficiary

3

 

designations. If a Participant fails to
designate a beneficiary, or if all designated beneficiaries of a Participant predecease the
Participant, then the Deferral Account shall be paid to the Participant’s estate.

ARTICLE IX

Trust

          The Company shall not be required to fund, or otherwise segregate assets to be used for
payment of Deferred Stock Units pursuant to the Plan. Notwithstanding the foregoing, the Company,
in the discretion of the Board, may maintain a grantor trust (a “Trust”) to hold assets to be used
for payment of such Deferred Stock Units. The assets of the Trust shall remain the assets of the
Company subject to the claims of its general creditors. Any payments by a Trust of benefits
provided to a Participant shall be considered payment by the Company and shall discharge the
Company of any further liability for delivery of such Deferred Stock Units.

ARTICLE X

General

          Section 10.1. Relationship to Stock Plan. Restricted Stock Unit awards, including any
such awards that are deferred hereunder, shall be subject to the terms and conditions of the stock
plan under which such awards are granted, and the applicable award agreement thereunder.

          Section 10.2. Tax Withholding. As a condition precedent to the receipt of any shares
of Common Stock or other payment pursuant to the Plan, the Participant shall pay to the Company, at
such times as the Company shall determine, such amounts as the Company shall deem necessary to
satisfy any withholding taxes due on income that the Participant recognizes as a result of the
payment of the Deferred Share Units. The obligations of the Company under the Plan shall be
conditional on such payment or arrangements, and the Company, its affiliates and subsidiaries
shall, to the extent permitted by law, have the right to deduct any such taxes from any payment
otherwise due to the Participant.

          Section 10.3. Effective Date; Termination. This Plan shall be effective as of the
Effective Date. The Board may terminate this Plan at any time. Termination of this Plan shall not
affect the payment of any amounts credited to a Participant’s Deferral Account.

          Section 10.4. Amendments. The Board may amend this Plan as it shall deem advisable,
subject to any requirements of applicable law, rule or regulation. No amendment may impair the
rights of a Participant to payment of his or her Deferral Account without the consent of such
Participant.

          Section 10.5. Non-Transferability of Benefits. No benefit payable at any time under
the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge,
attachment, or other legal process, or encumbrance of any kind. Any attempt to alienate, sell,
transfer, assign, pledge or otherwise encumber any such benefits, whether currently or thereafter
payable, shall be void. No person shall, in any manner, be liable for or subject to the debts or
liabilities of any person entitled to such benefits. If any person shall attempt to, or shall
alienate, sell, transfer, assign, pledge or otherwise encumber his or her benefits under the Plan,
or if by

4

 

any reason of his or her bankruptcy or other event happening at any time, such benefits
would devolve upon any other person or would not be enjoyed by the person entitled thereto under
the Plan, then the Board, in its discretion, may terminate the interest in any such benefits of the
person entitled thereto under the Plan and hold or apply them for or to the benefit of such person
entitled thereto under the Plan or his or her spouse, children or other dependents, or any of them,
in such manner as the Board may deem proper.

          Section 10.6. Adjustment. In the event of any stock split, stock dividend,
recapitalization, reorganization, merger, consolidation, combination, exchange of shares,
liquidation, spin-off or other similar change in capitalization or event, or any distribution to
holders of Common Stock other than a regular cash dividend, the number of Deferred Stock Units
credited to each Deferral Account under the Plan and the securities with respect to which Deferred
Stock Units relate may be appropriately adjusted by the Board. The decision of the Board regarding
any such adjustment shall be final, binding and conclusive.

          Section 10.7. Forfeitures and Unclaimed Amounts. Unclaimed amounts shall consist of
the Deferred Stock Units in the Deferral Account of a Participant that are not payable because of
the Board’s inability, after a reasonable search, to locate a Participant or his or her
beneficiary, as applicable, within a period of two (2) years after the Payment Date upon which the
payment of any benefits becomes due. Unclaimed amounts shall be forfeited at the end of such
two-year period. These forfeitures will reduce the obligations of the Company under the Plan and
the Participant or beneficiary, as applicable, shall have no further right to his or her Deferral
Account.

          Section 10.8. Compliance With Section 409A of Code. This Plan is intended to comply
with the provisions of section 409A of the Code, and shall be interpreted and construed
accordingly.

          Section 10.9. Governing Law. This Plan and all determinations made and actions taken
pursuant thereto shall be governed by the laws of the State of Delaware and construed in accordance
therewith without giving effect to principles of conflicts of laws.

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]