Document:

Exhibit 10.1

Exhibit 10.1

AMENDMENT NO. 3

TO

STEVEDORING AND TERMINAL SERVICES AGREEMENT

This Amendment No. 3 (“Amendment No. 3”) is dated and effective as of January 1, 2010 among Horizon
Lines of Alaska, LLC (“HL Alaska”), Horizon Lines, LLC (“HL”) (for the purposes of this Amendment
No. 3, HL and HL Alaska shall be considered individually and collectively as “Carrier”) and APM
Terminals North America, Inc. (“Contractor”).

RECITALS

	A.	 	Carrier and Contractor entered into that certain Stevedoring and Terminal Services Agreement
dated as of May 9, 2004, as amended by an Amendment No. 1 dated as of December 12, 2004,
(“Amendment No. 1”), which Amendment No. 1 became void, and an Amendment No. 2 dated as of
November 30, 2006 (“Amendment No. 2”) (as so amended, the “Terminal Agreement”).

	B.	 	Carrier and Contractor hereby intend to amend the Terminal Agreement as described below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, HL Alaska, HL, and Contractor agree as follows:

	 	1.	 	Definitions. All terms used herein, unless otherwise specified, shall have the meaning
ascribed to them in the Terminal Agreement.

	 	2.	 	The first sentence of Section 2(b) of the Terminal Agreement is deleted and replaced
with the following: “For any Cargo transported by Carrier in its regularly scheduled Jones
Act service on a Vessel that needs to call a terminal located in the respective territories
listed in First Revised Exhibit A (each a “Terminal Territory”), Carrier shall guarantee to
Contractor to move such cargo through a Terminal located in a Terminal Territory.”

	 	3.	 	The following new sentence is added immediately after the second sentence of Section
2(b) of the Terminal Agreement: “For the sake of clarity, Guaranteed Cargo shall not
include: cargo transported on one-time international moves for dry-dock positioning voyages
or one-time positioning voyages; or inter-coastal cargo defined as cargo transported in a
new service originating and terminating between two ports in the lower 48 states provided
that Carrier will use best efforts to use Contractor’s facilities/services in ports where
such services call and further provided that Carrier will only use another facility if
required to obtain cargo from or deliver cargo to a specific carrier. Further for the sake
of clarity, Guaranteed Cargo shall include cargo transported on the TP1 vessel string,
except as provided in Section 7 below.”

	 	4.	 	The following is added as the new last sentence of Section 2(b) of the Terminal
Agreement: “If Contractor accepts the Guaranteed Cargo offered, Contractor shall provide
Carrier the Services at the rates described in the Appendices to this Agreement and Carrier
must exclusively use the relevant Terminal for such Guaranteed Cargo even if only a portion
of the relevant Vessel is carrying such Guaranteed Cargo.”

 

 

 

	 	5.	 	Sections 2(b)(i) and (ii) of the Terminal Agreement are deleted.

	 	6.	 	A new Section 2(f) is added to the Terminal Agreement, as follows:

(f) Contractor will pay Carrier cash bonuses totaling * for the time period commencing
January 1, 2010 through December 31, 2015. The cash payments are as follows:

	 	 	 
	2010

	 	*
	2011

	 	*
	2012

	 	*
	2013

	 	*
	2014

	 	*
	2015

	 	*

Contractor will pay Carrier * of the annual bonus amount on the *, starting on
January 10, 2011, by crediting Carrier for such amount. This bonus is based on Carrier
services calling Contractor’s exclusive terminals as set forth in this Agreement.

	 	7.	 	A new Section 2(g) is added to the Terminal Agreement as follows:

(g) TP1 Service. As of the effective date of this Amendment No. 3, Carrier operates its
TP1 vessel string (“TP1 Service”) in accordance with the Maersk Line/Horizon Lines Space
Charter Agreement, FMC Agreement No. 012086, which agreement is due to expire on or about
December 10, 2010. As a result of these arrangements, Carrier requires flexibility with
respect to the exclusivity obligations set forth in this Agreement, relating to Contractor’s
exclusivity of this Agreement in Los Angeles and Tacoma (“Terminal Facility”). Thus,
notwithstanding any other provision of this Agreement:

	 	(1)	 	First, between December 10, 2010 and December 31, 2010 (the
“First Option Date”) Carrier may move the TP1 Service to a different container
terminal facility without terminating this Agreement (the “First Option”),
provided that (i) Carrier has an FMC- filed and executed vessel sharing, space
charter or similar agreement for its TP1 Service with an ocean common carrier
which has a financial stake or existing, binding contractual commitment in a
container facility in the port where the TP1 Service calls, and Contractor
and such other carrier are unable to reach mutual agreement upon the terms and
conditions pursuant to which Contractor is willing to provide marine terminal
and stevedoring services to such other carrier, and (ii) Carrier has delivered
written notice of its election to exercise the First Option to Contractor at
least ninety (90) days prior to the First Option Date and (iii) such other
carrier uses *.

 

2

 

	 	(2)	 	Second, in the event that Carrier has not otherwise exercised the First Option
such that Carrier continues operations at the Terminal Facility after the First
Option Date, Carrier may on December 31, 2012 (the “Second Option Date”) move
the TP1 Service to a different container terminal facility without terminating
this Agreement (the “Second Option”), provided that in any such event, (i)
Carrier has an FMC-filed and executed vessel sharing, space charter or similar
agreement for its TP1 Service with an ocean common carrier which has a financial
stake or existing, binding contractual commitment in a container facility in the
port where the TP1 Service calls, and Contractor and such other carrier are
unable to reach mutual agreement upon the terms and conditions pursuant to which
Contractor is willing to provide marine terminal and stevedoring services to
such other carrier, and (ii) Carrier has delivered written notice of its
election to exercise the Second Option to Contractor at least one hundred
eighty (180) days prior to the Second Option Date and (iii) such other carrier
uses *.

	 	(3)	 	Third, Carrier may elect to postpone the exercise of the Second
Option from December 31, 2012 to either December 31, 2013, or December 31,
2014, in Carrier’s discretion, provided that it gives written notice of such
election to Contractor no later than the First Option Date.

	 	(4)	 	In the event that Carrier exercises any of the options set
forth in Section 2(g) (1)-(3) herein, Carrier and Contractor will agree upon a
reasonable transition period for the orderly, efficient and smooth transfer of
Carrier’s operations to another container terminal and terminal services
provider.

	 	(5)	 	Should Carrier exercise any of the options set forth in Section
2(g)(1)- (3) herein, the annual bonus payments set forth in Section 2(f) above
shall be * for each year that the TP1 Service does not call at
Contractor’s Terminal Facility through December 31, 2015 unless Carrier has
similar regular liner service as it does on January 1, 2010 at Contractor’s
Elizabeth, NJ Terminal.

	 	(6)	 	Should Carrier meet the obligations set forth in Section
2(g)(1)-(3) herein due to such other carrier having a contractual obligation in
a container facility in the port where the TP1 Service calls, the exclusivity
obligations will be reinstated upon the date of expiry of the vessel sharing
agreement, space charter agreement, or similar agreement with such other
carrier.

	 	8.	 	A new Section 2(h) is added to the Terminal Agreement as follows: “Contractor has the
first right of refusal for stevedoring Carrier’s Vessels in North America at Common User
facilities.”

	 	9.	 	Add a new Section 2(i) to the Terminal Agreement, as follows:

“(i) Elizabeth, NJ

This Agreement applies to Jacksonville, FL, Houston, TX, Los Angeles, CA, Tacoma, WA and
Elizabeth, NJ. However, Carrier may remove Elizabeth, NJ from the scope of this Agreement
only if Carrier relocates to a terminal location identified as outside the State of New York
or New Jersey Terminal Territory as defined in First Revised Exhibit A to this Agreement.

 

3

 

Contractor will provide Carrier with discounted proposed rates per the attached rate
schedule (Second Revised Appendix II-Elizabeth) effective as of January 1, 2010 if Carrier
advises by June 21st, 2010 that it will continue to call Elizabeth, NJ weekly for
the remainder of the term of this Agreement in 2010. If Carrier advises Contractor after
June 21st, 2010 that Carrier will continue to call Elizabeth, NJ through the term
of this Agreement, then the new rates per Second Revised Appendix II-Elizabeth will be
effective on the first of the month following notification by Carrier. Carrier agrees to
provide the Contractor with 28 days notice prior to moving vessel services from Elizabeth,
N.J.

If Carrier leaves and re-enters the Exclusive Terminal Territory (State of New York or New
Jersey) at any time during the term of this Agreement, or any extension thereof, Carrier
will be obliged to call its vessels at Contractor’s Terminal in Elizabeth, NJ at the
proposed discounted rates as per Second Revised Appendix II-Elizabeth and the agreed to
performance standards.”

	 	10.	 	Section 3(a) of the Terminal Agreement is deleted in its entirety and replaced with the
following:

“This Agreement shall remain in effect from January 1, 2010 for a period of six consecutive
years through December 31, 2015, and shall terminate effective on January 1, 2016 without
any further notice required unless sooner terminated, or extended, pursuant to the
provisions herein. Carrier has the right to extend the Agreement beyond December 31, 2015,
for one additional period of two years beginning on January 1, 2016. If Carrier wishes to
exercise this right to extend, it must do so by providing written notice to Contractor not
less than one hundred eighty (180) days prior to December 31, 2015.

Upon mutual agreement, Carrier and Contractor may mutually agree to further extend the
Agreement.”

	 	11.	 	A new Section 3(c) is added to the Terminal Agreement, as follows:

“(c) Resolution and Correction of Performance Standard Shortfalls

	 	(1)	 	If Contractor is unable to reach or regularly maintain gate turn
times/berth/crane and productivity performance standards as set forth in Section
2.1.I.B. through 2.1.I.D. of Appendix I, as amended, of this Agreement, thereby
adversely affecting Carrier, then both parties shall promptly meet to identify and
resolve any issues. Carrier shall advise Contractor in writing of the failure of
performance if meeting(s) at a local level did not result in resolution of the
issues(s).

	 	(2)	 	Despite the implementation of resolution procedures, if Contractor is unable to
maintain the performance standards as stated in 3(c)(1) on a regular basis, through no
fault of Carrier, then Contractor, at its cost, will employ commercially reasonable
measures to correct such performance shortfalls.

	 	(3)	 	If conditions which are the fault of Contractor become permanent and cannot be
resolved by Contractor, then Carrier will have the right to terminate this Agreement
for the Terminal(s) impacted by these performance standard shortfalls. Carrier must
provide 90 days written notice after the resolution steps set forth above in Section
3(c)(1) and (2) above have been exhausted prior to terminating this Agreement for the
Terminal(s) impacted”

 

4

 

	 	12.	 	A new Section 6(d) is added to the Terminal Agreement, as follows:

“6(d) Reefer Services: Operational Practices. Notwithstanding any other provision of this
Agreement:

	 	(1)	 	Genset Mounting and Dismounting

	 	(i)	 	Jacksonville: Contractor will to the extent possible keep
gensets mounted to the chassis, provided the Carrier coordinates mount/dismount
genset activity in writing to the Contactor. Contractor will follow Carrier’s
instructions to the extent feasible but there is no penalty if not matched.

	 	(ii)	 	Los Angeles: Once Carrier has a dedicated genset and chassis
fleet, Contractor will to the extent possible keep gensets mounted to the
chassis, provided the Carrier coordinates mount/dismount genset activity in
writing to the Contactor. Contractor will follow Carrier’s instructions to the
extent feasible but there is no penalty if not matched.

	 	(iii)	 	Jacksonville and Los Angeles: In order to match empty reefers
coming off the vessel to an under-slung genset chassis, the mechanics plug the
reefer into the genset. If Carrier advises Contractor which genset to string
and subsequently requests the unit to be “unstring”, then Contractor will bill
Carrier to perform this activity. Contractor will provide back up for the
activity by supplying the genset number and container number. In Los Angeles
this service can only be provided once the Carrier has a dedicated genset and
chassis fleet.

	 	(iv)	 	Jacksonville and Los Angeles: if a genset needs to be
dismounted or serviced after receipt, then the drays, genset mount/dismount and
grounding/mounting activities will be for Carrier’s account.

	 	(v)	 	Houston and Tacoma: Currently the services in 6(d) (1) (i),
(ii) and (iii) are not available however if conditions change, Carrier and
Contractor will discuss instituting these services at these locations.

	 	(2)	 	Pairing Reefers to Chassis with Gensets

	 	(i)	 	Jacksonville: To the extent possible, and based on Carrier’s
instructions, Contractor will pair reefers to chassis with gensets from the
ship or from the ground and no penalty if not matched.

	 	(ii)	 	Houston and Los Angeles: If there is a dedicated Carrier
chassis and genset fleet then to the best possible extent Contractor will
arrange for reefer street turns (empty reefers entering the facility from the
street) to be received (gated in) without dismounting gensets. These units
would then be provided for customer export bookings. If a genset needs to be
dismounted or if a genset, chassis or container serviced after received, then
the drays, genset mount/dismount and grounding/mounting activities will be for
Carrier’s account.

	 	(iii)	 	Carrier and Contractor will form a working team to review the
process of pairing reefers to chassis with gensets in Los Angeles.

 

5

 

	 	13.	 	A new Section 6(e) is added to the Terminal Agreement, as follows:

“6(e) Chassis Flip Charges in Grounded Locations: Notwithstanding any other provision of this
Agreement: 

	 	(1)	 	Chassis Flip Charges apply in Los Angeles (mainly a wheeled operation) and
Jacksonville (a wheeled operation).

	 	(2)	 	In Houston Contractor will not charge for flips of wheeled hazardous containers

	 	(3)	 	Except as set forth in Section 6(e) (1) and (2) herein, chassis flip charges
apply to chassis flip services performed by Contractor hereunder.

	 	14.	 	A new Section 6(f) is added to the Terminal Agreement as follows:

“6(f) On Terminal Asset Management in 2011: Notwithstanding any other provision of this
Agreement:

	 	(1)	 	Contractor will work with Carrier in providing on Terminal asset management in
2011 as per sections 6(f) (2) through (5) below if Carrier changes to a dedicated fleet
of chassis and gensets. If Carrier has a dedicated fleet of chassis and/or gensets,
Carrier would then need to have visibility to any/all gate transactions involving
chassis and genset equipment to include bare chassis gate movements. Carrier will be
required to provide Contractor with a fleet file inclusive of a list of all Carrier
chassis, containers and gensets.

	 	(2)	 	On Terminal asset inventories: System inventories for Carrier chassis
designated as the owner chassis/gensets will be available through on line reports.

	 	(3)	 	Genset Inventories and Reconciliation: As requested by Carrier, Contractor can
provide this on a man hour basis or at a mutually agreed to flat rate.

	 	(4)	 	Chassis Inventories and Reconciliation: As requested by Carrier, Contractor can
provide this on a man hour basis or at a mutually agreed to flat rate.

	 	(5)	 	Contractor in conjunction with Carrier will define the process (i) to ensure
loaded and empty containers are mounted on road-worthy chassis, and (ii) to identify
and segregate deadlined chassis on the Terminal. This process will be included in the
Working Procedures Manuals.

 

6

 

	 	15.	 	A new Section 6(g) is added to the Terminal Agreement as follows:

“6(g) Additional Terminal Specific Items. Notwithstanding any other provision of this
Agreement:

	 	(1)	 	Houston and Jacksonville: Contractor will assist Carrier with any claims to
the Port Authority for Port Authority crane breakdowns. If the Port Authority
reimburses or provides a payment to Contractor for the Port crane downtime then
Contractor will remit these funds to Carrier.

	 	(2)	 	Los Angeles:

	 	(i)	 	Contractor will pre-mount * empty reefers and shift them
to the pre-trip pad by the close of business of the shift following vessel
discharge, if Carrier advises correct reefer types. Carrier will be charged per
item no. 21 Premounting of Empties in the Second Revised Appendix II Rate
Schedules. If Carrier does not advise correct reefer types and additional
pre-mounts are required, any additional costs will be for Carrier’s account.
This is in addition to the requirement to have * empty reefers positioned
to the reefer pads daily.

	 	(ii)	 	On or after December 11, 2010, if the Carrier expands its
international service as an ocean common carrier service using the TP1 vessel
string, Contractor will have a separate area in the yard for Carrier loads; And

	 	(a)	 	Contractor will discharge * Carrier
international cargo laden containers to wheels; and

	 	(b)	 	Parties will discuss and implement the
appropriate services required to support Carrier customer service level
for the TP1 Service.

	 	(3)	 	Tacoma: Carrier to utilize the pool of funds made available by the Port of
Tacoma but will work with Contractor to prioritize the funds to consider investments in
the Tacoma Terminal.

	 	(4)	 	Contractor and Carrier will work together to improve processes. Working
Procedures Manuals to be updated in each Terminal within 60 days of signing Amendment
No. 3 to this Agreement.”

	 	16.	 	Section 10(b), (g), and (h) of the Terminal Agreement are deleted and replaced with the
following:

“(b) Contractor shall be liable for damage to or loss of cargo attributed to Contractor’s
proportionate share of negligence that is proven; however, Contractor’s liability to Carrier
or any cargo interests (i.e. third party or parties) shall be limited to the limitation in
the Vessel’s Bill of Lading (as defined in Section I hereof) and in any event shall not
exceed the cost of such amount(s) paid by Carrier. The Carrier agrees that it shall insert
a Clause into the Vessel’s Bill of Lading by which all defenses, exceptions, limitations of
liability and other rights of Carrier, shall be extended to Contractor subject to applicable
laws failing which Carrier shall indemnify Contractor for any and all amounts or liabilities
imposed upon Contractor in excess of what Contractor would have been responsible for if said
clause had not been inserted.

 

7

 

(g) Limitation of Liability: Carrier agrees to include Contractor as an express
beneficiary of the limitation of liability provisions of all contracts of carriage (i.e.
Vessel’s Bills of Lading) or contracts of affreightment, as evidenced by the Vessel’s Bill
of Lading and/or passenger tickets, entered into by Carrier during the effective period of
this Agreement and to extend to Contractor the coverage of the Carriage of Goods by Sea Act
of the United States (“COGSA”) to the period of time prior to loading and subsequent to
discharging while the cargo is in the custody of Carrier or its agents or other contractors,
including Contractor. Regardless of any limitation of liability, even if no such limitation
is specified in Carrier’s contracts of carriage (i.e. Vessel’s Bills of Lading), contracts
of affreightment or otherwise, the maximum limitation amount for which Contractor shall be
liable to Carrier or any third party shall not exceed the highest amount as calculated
between (i) and (ii) below:

The Highest Of:

	 	(i)	 	$1,000/package (a “package” being defined as including a
unitized load, group or assemblage and shall include a, skid, pallet, cradle or
the like)

	 	(ii)	 	The limitation under the Hague-Visby Rules as amended at
Brussels December 21, 1979 (S.D.R. Protocol).

(h) Contractor is relieved of all liability to Carrier for all claims for cargo loss,
delay, damage or shortage of any nature or description unless a claim in writing has been
made to Contractor, or suit is brought or an arbitration proceeding is initiated against
Contactor, within one year after delivery of the goods or the date when the goods should
have been delivered; or, if a claim has been timely made, but declined, suit or an
arbitration proceeding is not brought within two years from the date of declination of the
claim in whole or in part against Contractor. These time periods also include suits for
indemnity by Carrier against Contractor for payments paid or faced, including subrogation
claims, and no extension of time for suit by Carrier, its agents or assigns to any third
party shall extend the time limitations set forth herein unless expressly agreed in writing
by Contractor.”

	 	17.	 	New Sections 10(o), (p), and (q) are added to the Terminal Agreement as follows:

“(o) Notwithstanding section (g) or any other language herein, Contractor reserves the right
to reject any payment by Carrier to a third party (due to settlement, adjudication or
otherwise) unless Carrier provides Contractor with prior notice of intent to make payment
and receives pre-approval and consent from Contractor in writing. Contractor will use best
efforts to respond to Carrier’s intent to make payment within 30 days of receiving all
relevant supporting claim documentation.

 

8

 

(p) In the event that the shipper shall declare the value of the goods in a particular
instance, and such value shall be noted on the face of the bill of lading issued by Carrier
to cover such goods, and shipper shall pay or promise to pay extra freight charges to induce
Carrier to increase the limit of its liability to the declared amount, then, and in each
such event, prior to the limit of Contractor’s liability being similarly increased, Carrier
shall....

	 	(i)	 	Notify Contractor, in advance and in writing of Carrier’s intention
to reimburse Contractor for the cost of obtaining increased insurance to cover the
additional risk imposed upon Contractor in such case; or

	 	(ii)	 	Indemnify Contractor against any liability in excess of Contractor’s
maximum limitation amount as described in (g) above.

(q) Claims of less than $300 in the aggregate arising from any one incident shall be
resolved, in the event brought by a third party, by the party against whom such claim is
asserted. Carrier and Contractor agree that they shall not assert claims against one
another for amount less than $300 in the aggregate arising from any one incident.

	 	18.	 	A new Section 12 (d) is added to the Terminal Agreement, as follows:

“Notwithstanding any other provision of this Agreement, if Carrier exercises its right to
extend this Agreement for one additional period of two (2) years pursuant to Section 3(a) of
this Agreement, beginning on January 1, 2016, all Base Lift Rates will increase by a
one-time factor of *, and all other rates will remain unchanged except for
escalations allowed by this Agreement. For avoidance of doubt the * increase to
the base lift rate is in addition to escalations to the base lift rate allowed by this
Agreement”

	 	19.	 	Section 15(c) of the Terminal Agreement is deleted and replaced with the following:
“Except for retroactive ILA or ILWU agreements and assessments: neither party shall be
liable hereunder for charges if Contractor fails to bill for activity that occurred within
six months from the date of the activity; neither party shall be required to return an
overpayment to the other party if the party that overpaid fails to notify the other party
within six months after the date of activity that resulted in such overpayment; and
Carrier will not request a refund or dispute an invoice that has been paid that is older
than six months.”

	 	20.	 	A new Section 15(d) is added to the Terminal Agreement, as follows:

	 	 	 	“If Carrier has a vessel sharing, space charter or similar agreement with respect
to the TP1 vessel string, Contractor shall invoice vessel related terminal fees and
expenses in accordance with the agreed split of such fees and expenses instructed by
Carrier so long as such other carrier or carriers consent to such agreed split of fees
and expenses in writing”.

	 	21.	 	The Terminal Agreement’s Exhibit A is deleted and replaced in its entirety with the
attached First Revised Exhibit A, which is made a part of this Amendment No. 3. All
references to “Exhibit A” in the Terminal Agreement shall be changed to “First Revised
Exhibit A”.

	 	22.	 	Section 2.1.I. of Appendix I of the Terminal Agreement is revised by redesignating it
as Section 2.1.I.A.

 

9

 

	 	23.	 	New Sections 2.1.I.B., 2.1.I.C., and 2.1.I.D. are added to Appendix I of the Terminal
Agreement as follows:

“B. Berth/Crane/Productivity Guarantees: Notwithstanding any other provision of
this Agreement:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	(1	)	 	Houston.	 	Berth:	 	Thursday 0700 to Friday 0600
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Cranes:	 	Crane Density * cranes Thursday 0700 to 1800, *
cranes Thursday 1900 to Friday 0600. Crane density provided
crane split/moves allows for * or * cranes and
cutoff procedures adhered to.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Productivity:	 	* moves per hour, average moves per hour per
crane per vessel operation.

Productivity is measured from start of work to finish of work and Contractor shall
only be required to meet this guarantee based on actual hours of work that excludes
heavy lifts, meal (and other planned) breaks and detentions beyond the control of
Contractor. Further vessel productivity targets bar any extraordinary operating
conditions such as extreme weather, strike or slow down beyond the control of
Contractor.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	(2	)	 	Jacksonville	 	Berth:	 	Tuesday and Friday 0700 to 1800
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Cranes:	 	* cranes provided crane split and move count allows for * cranes.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Productivity:	 	* moves per hour, average moves per hour per crane per vessel operation.

Productivity is measured from start of work to finish of work and Contractor shall only
be required to meet this guarantee based on actual hours of work that excludes heavy
lifts, meal (and other planned ) breaks and detentions beyond the control of
Contractor. Further vessel productivity targets bar any extraordinary operating
conditions such as extreme weather, strike or slow down beyond the control of
Contractor

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	(3	)	 	Los Angeles	 	Berth:	 	Thursday 0800 to Saturday 0500 and Sunday 0800 to Monday 0500
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Cranes:	 	* cranes provided crane split and move count allows for
* cranes Friday 0800 to Saturday 0500 and * crane
Thursday 0800 to 1800.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	From 2011, Contractor will provide * cranes on
Thursday day or * crane Thursday second shift if
change in inbound volumes requires the additional crane.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Productivity:	 	Contractor will complete the vessel by Saturday 0500
and Monday 0500 provided that split/moves allows, cargo cut offs
are defined and agreed to in updated Working
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Procedures Manual and there were no circumstances
beyond the control of Contractor which affected
completion of vessel within the above pro forma window.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	It is not the intent to work vessel on 2nd
or 3rd shift Thursday.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Both teams to work together making shift ganging
decisions that will not compromise Carrier’s vessel
stow and customer service requirements nor will they
impact the ability to stevedore an efficient and cost
effective operation.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	This section based on vessel capacities current as of
January 1, 2010.

 

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	 	 	 	(4	)	 	Tacoma	 	Berth:	 	ALA 1 — Wednesday 0700 to Wednesday 2400

ALA 2 — Friday 0700 to Friday 2400

PEX — Sunday 0700 to Sunday 1800
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Cranes:	 	Sufficient cranes to complete vessel within pro forma window.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Productivity:	 	Contractor will complete the vessels by Wednesday 2400
(2200 in winter months), and Friday 2400 (2200 in winter months)
provided that split/moves allows for at least four crane split
for 8 hours, cargo cut offs are defined and agreed to in updated
Working Procedures Manual and there were no circumstances beyond
the control of Contractor which affected completion of vessel
within the above pro forma window. Contractor will complete PEX
vessels by Sunday 1800.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Both teams to work together making shift ganging
decisions that will not compromise Carrier’s vessel
stow and customer service requirements nor will they
impact the ability to stevedore an efficient and cost
effective operation.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	This section is based on the vessel capacities current
as of January 1, 2010.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Additional Agreement:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Tuesday 1800 to Wednesday 0700 — Berth/Crane(s) will
be made available if operationally feasible.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Thursday 1800 to Friday 0700 — Berth/Crane(s) will be
made available if operationally feasible.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Contractor acknowledges that Carrier may have a summer
service that may require a berth/crane(s) on Monday.
Contractor will review request for summer service
annually on 60 day notice from Carrier and use best
efforts to provide cranes and berth required.

 

11

 

C. Gate Turn Times: Notwithstanding any other provision of this Agreement:

	 	(1)	 	Houston: Contractor to achieve an average gate turn time of
* minutes for a single transaction and * minutes for a double
transaction. Contractor will also strive to achieve lower gate turn times of
* minutes for a single transaction and * minutes for a double
transaction.

	 	(2)	 	Jacksonville: Contractor to achieve an average gate turn time
of * minutes for a single transaction and * minutes for a double
transaction. Contractor will also strive to achieve lower gate turn times of
* minutes for a single transaction and * minutes for a double
transaction.

	 	(3)	 	Los Angeles: Contractor to achieve an average gate turn time
of * minutes for a single transaction and * minutes for a double
transaction for both domestic and international cargo. Contractor will also
strive to achieve lower gate turn times of * minutes for a single
transaction and * minutes for a double transaction.

	 	(i)	 	Contractor will provide flex gates on Friday
1st and 2nd shifts.

	 	(ii)	 	When Carrier no longer uses the equipment of another
carrier which is also a customer of Contractor—that is—when Carrier has
its own separate and distinct equipment pool, Contractor will provide
Carrier with a separate empty pile.

	 	(iii)	 	Contractor will work with Carrier to take actionable
steps to reduce gate turn times for Carrier which includes the
international requirements.

	 	(4)	 	Tacoma: Until such time as Contractor has another carrier on
terminal, Contractor to achieve an average gate turn-time of * minutes
for a single transaction and * minutes for a double transaction. If and
when Contractor has another carrier on terminal, Contractor to achieve an
average gate turn-time of * minutes for a single transaction and *
minutes for a double transaction. Contractor will also strive to achieve lower
gate turn times of * minutes for a single transaction and * minutes
for a double transaction.

	 	(5)	 	In all cases, the turn time is measured from gate pedestal to
out gate and does not include trouble transactions or Carrier not having
sufficient good order equipment available.

D. Gate Trouble Transaction: Both parties will cooperate to reduce the number and length of
gate trouble transactions and to minimize any resultant cargo delays.

 

12

 

	 	24.	 	All references to “Appendix I” in the Terminal Agreement shall be changed to “Appendix
I, as amended”.

	 	25.	 	The Terminal Agreement’s Revised Appendix II is deleted and replaced in its entirety with
the attached Second Revised Appendix II, which is made a part of this Amendment No. 3. All
references to “Appendix II” and “Revised Appendix II” in the Terminal Agreement shall be
changed to “Second Revised Appendix II”.

	 	26.	 	Effective Date. The Rates in Second Revised Appendix II shall become effective as of
January 1, 2010, except as provided in Section 9 above. All other terms set forth in this
Amendment No. 3 shall become effective as of June 7, 2010.

	 	27.	 	This Amendment No. 3 supersedes and replaces the terms and conditions of the
Memorandum of Understanding among Horizon Lines, LLC, Horizon Lines of Alaska, LLC and APM
Terminals North America, Inc. entered into as of January 27, 2010.

	 	28.	 	No Other Modification. The Terminal Agreement is only modified as set forth herein and
in all other respects remains in full force and effect.

	 	29.	 	Governing Law. The validity, meaning and effect of this Amendment No. 3 shall be
determined in accordance with the Applicable Law clause of the Terminal Agreement.

	 	30.	 	Counterparts. This Amendment No. 3 may be executed in two counterparts, each of which
shall be deemed an original, but all of which together shall be constitute one and the same
instrument.

 

13

 

IN WITNESS WHEREOF, this Amendment No. 3 has been executed below by the duly authorized
representative of each party.

	 	 	 	 	 	 	 
	HORIZON LINES, LLC	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Robert Zuckerman	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Robert Zuckerman	 	 
	 

	 	Its:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	HORIZON LINES OF ALASKA, LLC	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Robert Zuckerman	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Robert Zuckerman	 	 
	 

	 	Its:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	APM TERMINALS NORTH AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Martin Oppenheimer	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Martin Oppenheimer	 	 
	 

	 	Its:
	 	Director, Contracting and Pricing	 	 

[Signature Page to Amendment No. 3 to the Stevedoring and Terminal Services Agreement]

 

14

 

FIRST REVISED EXHIBIT A

EXCLUSIVE TERMINALS

This First Revised Exhibit A is attached to and made a part of the

Stevedoring and Terminal Services Agreement,

Dated May 9th, 2004, as amended

Among Horizon Lines, LLC, Horizon Lines of Alaska, LLC and APM Terminals North America, Inc.

	 	 	 
	Location of Terminal	 	Terminal Territory
	 
	 	 
	Port Elizabeth, New Jersey

	 	State of New York or New Jersey
	 
	 	 
	Jacksonville, Florida

	 	Range from Jacksonville,

Florida to Savannah,

Georgia
	 
	 	 
	Los Angeles, California

	 	Southern California
	 
	 	 
	Tacoma, Washington

	 	State of Washington
	 
	 	 
	Houston, Texas or successor terminal

In Houston, Texas

	 	State of Texas

 

15

 

Horizon Lines

Terminal Services Rates at

APM Terminals — Jacksonville, FL

Rates Effective January 1, 2010 to September 30, 2010

	 	 	 	 	 	 	 	 	 
	1.    A.    Discharge or Load — Base Rate — per marine lift
	 	$	 	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 
	   B.    Transshipment per move
	 	$	 	 	 	 	*	 
	   C.    Shifting Cell to Cell within the same hatch
	 	$	 	 	 	 	*	 
	   D.    Restowing container Cell to Dock to Cell
	 	$	 	 	 	 	*	 
	   E.    Overheight unit lifted with overheight spreader (no wires)
	 	$	 	 	 	 	*	  per lift

Rate includes straight-time stevedoring staff/gangs, normal container lashing/unlashing on vessel
(excluding detentions), crane rental, tractors during vessel operations, assisting in receiving and
delivery, clerking and checking during vessel operations, weighing of export containers, cargo plan
preparation, roadability check (labor only), visual seal inspection, and load/empty cycle to/from
vessel including tir preparation. Standard operational procedure is that all containers to be
wheeled.

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month total
gate moves that exceed the allowed number of gate moves will be invoiced to the carrier as per Item
number 7 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading to
a vessel or barge. Each container will be invoiced two transshipment moves.

Lifting Bundles of Flat Racks/Chassis —

	 	A.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge

	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates

	 	B.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge

	 
	 	ii.	 	Contract charge for bundling/unbundling
	 
	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates

	 
	 	ii.	 	Contract charge for bundling / unbundling

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

 

 

	 	C.	 	If the contractor locks (or unlocks) and secures empty flatracks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat
loaded/discharged provided that the contractor follows the stow plan provided by the
carrier with relation to the stowage of flatracks.

(i.e. If 4 flats are locked together shoreside and lifted as one unit to the vessel, the
lift charge to the carrier will be 4 x base lift rate)

	 	 	 	 	 	 	 	 	 
	2.
	    	A.    Reefer Differential assessed to each loaded reefer for plug/unplug
services, quality check at time of discharge /loading,
record keeping, and administrative services. This rate does not include pre-tripping, labor
to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be
charged also for reefers received/delivered with no vessel activity.

	 	 	$	 	 	 *  per loaded reefer
	 
	 	 	 	 	 	 	 	 
	 

	 	B.    Daily Reefer monitoring and electric charges per calendar day or
portion thereof (minimum one day charge).

	 	 	$	 	 	* Daily charge
	 
	 	 	 	 	 	 	 	 
	 

	 	First Calendar Day to receive a  * discount from stated rate.	 	 	 	 	 	 
	 
	3.

	 	Maintenance and Repair (M and R) Man Hour Rates	 	 	 	 	 	 

	 	 	 	 	 	 	 
	ST $ *
	 	OT $ *
	 	DT $ *
	 	DOT $ *

	 	 	 
	Installing/Removing Gensets

	 	— 30 minutes at the applicable M and R man hour rate plus $*
	Fueling Gensets

	 	— 12 minutes at the applicable M and R man hour rate
	Stringing Gensets

	 	— 12 minutes at the applicable M and R man hour rate

	 	 	 	 	 
	4.      A.    Standby / Guarantee per Gang per hour Straight Time
	 	 	 	 
	 
	 	One Gang	 	$ *
	 
	 	Two Gangs	 	$ *
	 
	 	Three Gangs	 	$ *
	 
	 	 	 	 
	B.    Extra Labor / Heavy Lifts per Gang per hour Straight Time
	 	 	 	 
	 
	 	One Gang	 	$ *
	 
	 	Two Gangs	 	$ *
	 
	 	Three Gangs	 	$ *
	 
	 	 	 	 
	C.    Detentions per Gang per hour Straight Time 

(See Appendix 1 “Detentions” for list of billable and non-billable
detentions)
	 	 	 	 
	 
	 	One Gang	 	$ *
	 
	 	Two Gangs	 	$ *
	 
	 	Three Gangs	 	$ *
	 
	 	 	 	 
	5.      Overtime Differentials per gang per hour
	 	 	 	 
	 
	 	 	 	 
	   A.    Overtime
	 	One Gang	 	$ *
	 
	 	Two Gangs	 	$ *
	 
	 	Three Gangs	 	$ *

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

2

 

	 	 	 	 	 
	B.    Double Time
	 	One Gang	 	$ *
	 
	 	Two Gangs	 	$ *
	 
	 	Three Gangs	 	$ *
	 
	 	 	 	 
	C.    Double Overtime
	 	One Gang	 	$ *
	 
	 	Two Gangs	 	$ *
	 
	 	Three Gangs	 	$ *
	 
	 	 	 	 
	D.    Double Double Overtime
	 	One Gang	 	$ *
	 
	 	Two Gangs	 	$ *
	 
	 	Three Gangs	 	$ *

	6.	 	Overtime Gate Charges — Extra labor plus equipment per Items 13 and 12 below prorated
between carriers based on percentage of moves utilizing gate outside standard terminal gate
hours. Current standard gate hours are 0800 to 1700 Monday, Wednesday, and Thursday and 0700
to 1700 Tuesday and Friday. Holiday gates which are included in the base lift rate are stated
on the attached schedule.
	 
	 	 	UMS reserves the right to change the standard gate hours if proforma or volume changes warrant it.
If the terminal operator chooses to open during the lunch period or operate flex gates there will
be no extra charge to the carrier. Overtime gate charges also apply to ILA holidays.

Note: A flat fee of $ * will be charged for receiving containers between 1700 to 1900
hours on Friday.

	 	 	 	 	 	 	 	 	 	 	 
	7.

	 	Extra Gate Moves (exceeding the * gate moves included per
vessel lift). Billing to be done on a calendar month basis.
	 	$	 	 	 	 * per move	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	8.	 	Mounting/Grounding —	 	Straight Time $ *
	 	 	 	 	Overtime        $ *

	 	 	 
	**	 	Subject to minimum labor guarantees

Each container that is required to be handled within stack to carry out request will be charged a
mount and/or ground fee. Also, this item would apply if there is an overall change by Horizon
Lines in the mode of operation. This rate will include drayage of container within the terminal.
In regards to For Sale and Off Hire containers, if a trucker requests a specific container number,
then Contractor will charge a mounting/grounding charge per move shifted/handled, excluding the
move for the container delivered.

In addition, in the event that the Carrier changes its mode of operation or makes a special request
to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to
order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates (Items 13 and
12 below).

Carrier has option of paying on Extra labor plus equipment basis (Items 13 and 12 below) subject to
minimum labor guarantees.

	9.	 	Miscellaneous Parts for Roadability — Carrier to negotiate directly with M and R vendor.
This is not applicable to Maersk owned chassis.

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

3

 

	10.	 	Maintenance — Carrier to handle directly with M and R vendor.

	 	 	 	 	 
	11.

	 	Drayage	 	 
	 

	 	Customs Vacis/Security/Government exams
	 	 Per Terminal Tariff
	 

	 	Other drays within terminal
	 	$  *  one way

	12.	 	Equipment Rental Rates (when ordered by Carrier; excludes operator)

	 	 	 	 	 
	 

	 	- Top Loader
	 	$ * per hour
	 

	 	- Yard Hustler
	 	$ * per hour
	 

	 	- Empty Handler
	 	$ * per hour
	 

	 	- Bombcart
	 	$ * per hour
	 

	 	- Container Crane
	 	Per APM Terminals contract rate with Port Authority

	 	 	 	 	 	 	 	 	 
	13.

	 	Extra Labor Rates
	 	Straight Time
	 	$ * Double Time
	 	$ *
	 

	 	Overtime
	 	$ * Double Overtime
	 	$ *	 	 
	 
	 	 	 	 	 	 	 	 
	14.	 	Dockage and Wharfage	 	— Charged at APM Terminals contract rate with Port Authority.
	 
	 	 	 	 	 	 	 	 
	15.	 	Line Handling	 	— Actual Man hours at Extra labor rates plus any man hour guarantees.

	16.	 	Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * gate moves or allowed mounting/grounding and will be
billed $  *  per container. (Excludes demurrage)

	17.	 	Terminal storage charges

	 	 	 	 	 
	 

	 	— Storage of empty containers
	 	$ * per unit per day

	 	 	Empty allowance will be determined by multiplying the Carrier’s container lift volume each
month times * times the number of days in the month. Excess empty container days over
such allowed free days will be charged monthly at the following rate per container per day.
(Free Days = Lifts x * x Days in Period)
	 
	 	 	Notwithstanding the means of calculating Carrier’s empty allowance stated above, the
parties agree when the Contractor notifies the Carrier that empty storage of equipment
meets or exceeds the storage cap, Carrier will be required to present the respective
terminal with an empty evacuation plan to reduce the number of empties below the cap
within a fourteen (14) day period. Daily storage cap is equal to * of the Carrier’s
previous year’s annual throughput.

	 	 	 	 	 
	18.

	 	Demurrage —
	 	Terminal Operator will bill, collect, and retain demurrage from carrier
according to the terminal tariff in effect on October 15, 2006. Below is the table of rates
from the terminal tariff.

	 	 	 
	Free time for export cargo is

	 	* calendar days.
	Free time for import cargo is

	 	* business days for dry containers and * business days for temperature controlled containers.

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

4

 

	 	 	 	 	 	 	 	 	 	 
	 	 	Demurrage Rates (per 20’/40’ container per calendar day or part thereof)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 	 	Inbound/Outbound/Transshipments	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	I)	 	One to Ten (1 —  10) Days (first period)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Dry General Purpose containers/Non-operating Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Operating Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Flat Racks, Open Tops, and Special Equipment	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Tank Containers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	II)	 	Eleventh Day and Above (second period)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Dry General Purpose containers/Non-operating Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Operating Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Flat Racks, Open Tops, and Special Equipment	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Tank Containers	 	$	 	*	 

The only exception is that the Contractor shall grant Carrier * days free time for autoracks,
pallet loads, and dunnage provided that Carrier provides a list of these containers to Contractor
48 hours prior to vessel’s arrival.

	 	 	 	 	 
	19.

	 	Lashing/Unlashing of breakbulk cargo on board vessel
	 	Extra labor man hour rates plus materials at cost plus *
	 
	20.

	 	Bundling of Chassis/Flat Racks
	 	$  * per chassis/flat plus materials

	 	 	 
	**	 	Subject to minimum labor guarantees 

	21.	 	Out of service equipment (containers and chassis) remaining on terminal in excess of *
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container/chassis per day.
	 
	 	 	If container is able to be stacked in a normal manner and fits in one container slot then
storage only applies. (Item 17 above)

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

5

 

	 	 	 	 	 	 	 	 	 
	22.	 	Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Items 13 and 12 above).
	 
	 	 	 	 	 	 	 	 
	23.

	 	Chassis Switching charge
	 	Straight Time
	 	$ *
	 

	 	 	 	Overtime
	 	$ *
	 
	 	 	 	 	 	 	 	 
	 

	 	To/From truckers equipment. From/To chassis.	 	 	 	 	 	 
	 

	 	Switching of reefer containers from underslung genset chassis.
	 	 	.	 	 	 
	 
	 	 	 	 	 	 	 	 
	25.

	 	Reefer Fuel will be charged based on the following formula:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer fuel for
the month at fuel vendor’s charge to Contractor plus *.

Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days
advance notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based
on the average weekly cost as published by government at the following web site (or similar web
site if this site no longer exists)
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

	 	 	 	 	 
	26.

	 	Security Guard, on Overtime
	 	$ * per hour

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

6

 

Horizon Lines

Terminal Services Rates at

APM Terminals — Jacksonville, FL

Baseline Rates Schedule effective January 1, 2011 Rates to be adjusted Labor/CPI increases as per

Agreement Appendix V and VI

The rates in this Appendix effective on January 1, 2011 shall be the numbers listed below, provided
however that such numbers are only baseline numbers and each shall be increased by the amount of
the increases as described in Sections 6(b), 12(a), 12(b) and 12(c) of the Terminal Agreement dated
as of May 9, 2004 (the “Original Agreement”) during the time period prior to January 1, 2011 and
Sections 6(b), 12(a), 12(b) and 12(c) as revised in Amendment 2 dated November 30, 2006.

For example, if the rate item no. 1A for Jacksonville in the Original Agreement CPI/Labor increases
on October 1, 2010 by *, then the $ * baseline rate listed below shall be increased to $
*. The subsequent increases in the Original Agreement would also be applied to this rate
through December 31, 2010. All rates in the below schedule would be adjusted in a similar manner
based on their percentage increase in the Original Agreement.

	 	 	 	 	 	 	 
	1.     A.   Discharge or Load — Base Rate — per marine lift
	 	 	 	$	 	*
	i) Lift rate 1A will be discounted as follows:
	 	 	 	 	 	 
	Calendar years 2011 and 2012
	 	$  *   per lift discount	 	 	 	 
	Calendar years 2013 through 2015
	 	$  *   per lift discount	 	 	 	 
	 
	        B.    Transshipment per move
	 	 	 	$	 	*
	        C.    Shifting Cell to Cell within the same hatch
	 	 	 	$	 	*
	        D.    Restowing container Cell to Dock to Cell
	 	 	 	$	 	*
	        E.    Overheight unit lifted with overheight spreader (no wires)
	 	 	 	$	 	*   per lift

Rate includes straight-time stevedoring staff/gangs, normal container lashing/unlashing on vessel
(excluding detentions), crane rental, tractors during vessel operations, assisting in receiving and
delivery, clerking and checking during vessel operations, weighing of export containers, cargo plan
preparation, roadability check (labor only), visual seal inspection, and load/empty cycle to/from
vessel including tir preparation. Standard operational procedure is that all containers to be
wheeled.

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month total
gate moves that exceed the allowed number of gate moves will be invoiced to the carrier as per Item
number 7 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading to
a vessel or barge. Each container will be invoiced two transshipment moves.

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

7

 

Lifting Bundles of Flat Racks/Chassis —

	 	D.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge

	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates

	 	E.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge
	 
	 	ii.	 	Contract charge for bundling/unbundling
	 
	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates

	 	ii.	 	Contract charge for bundling / unbundling

	 	F.	 	If the contractor locks (or unlocks) and secures empty flatracks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat loaded/discharged provided that the contractor follows the stow
plan provided by the carrier with relation to the stowage of flatracks.

(i.e. If 4 flats are locked together shoreside and lifted as one unit to the vessel, the
lift charge to the carrier will be 4 x base lift rate)

	 	 	 	 	 
	2. 

	 	A.     Reefer Differential assessed to each loaded reefer for plug/unplug
services, quality check at time of discharge /loading,
record keeping, and administrative services. This rate does not include pre-tripping, labor
to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be
charged also for reefers received/delivered with no vessel activity.

	 	$ * per loaded reefer
	 
	 	 	 	 
	 

	 	B.     Daily Reefer monitoring and electric charges per calendar day or
portion thereof (minimum one day charge).

	 	$ * Daily charge
	 
	 	 	 	 
	 

	 	First Calendar Day to receive a * discount from stated rate.	 	 
	 
	 	 	 	 
	3.

	 	Maintenance and Repair (M and R) Man Hour Rates	 	 

	 	 	 	 	 	 	 
	ST $ *
	 	OT $ *
	 	DT $ *
	 	DOT $ *

	 	 	 
	Installing/Removing Gensets

	 	— 30 minutes at the applicable M and R man hour rate plus $ *
	Fueling Gensets

	 	— 12 minutes at the applicable M and R man hour rate
	Stringing Gensets

	 	— 12 minutes at the applicable M and R man hour rate

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

8

 

	 	 	 	 	 
	4.    A.    Standby / Guarantee
per Gang per hour Straight Time
	 	 	 	 
	 
	 	 	 	 
	 

	 	One Gang
	 	$ *
	 

	 	Two Gangs
	 	$ *
	 

	 	Three Gangs
	 	$ *
	 
	 	 	 	 
	B.    Extra Labor / Heavy Lifts per
Gang per hour Straight Time
	 	 	 	 
	 
	 	 	 	 
	 

	 	One Gang
	 	$ *
	 

	 	Two Gangs
	 	$ *
	 

	 	Three Gangs
	 	$ *
	 
	 	 	 	 
	C.    Detentions per Gang per hour
Straight Time

(See Appendix 1 “Detentions”
for list of billable and
non-billable detentions)
	 	 	 	 
	 
	 	 	 	 
	 

	 	One Gang
	 	$ *
	 

	 	Two Gangs
	 	$ *
	 

	 	Three Gangs
	 	$ *
	 
	 	 	 	 
	5.    Overtime Differentials
per gang per hour
	 	 	 	 
	 
	 	 	 	 
	A.    Overtime

	 	One Gang 
	 	$ *
	 

	 	Two Gangs 
	 	$ *
	 

	 	Three Gangs 
	 	$ *
	 
	 	 	 	 
	B.    Double Time

	 	One Gang 
	 	$ *
	 

	 	Two Gangs 
	 	$ *
	 

	 	Three Gangs 
	 	$ *
	 
	 	 	 	 
	C.    Double Overtime

	 	One Gang 
	 	$ *
	 

	 	Two Gangs 
	 	$ *
	 

	 	Three Gangs 
	 	$ *
	 
	 	 	 	 
	D.    Double Double Overtime

	 	One Gang 
	 	$ *
	 

	 	Two Gangs 
	 	$ *
	 

	 	Three Gangs 
	 	$ *

	6.	 	Overtime Gate Charges — Extra labor plus equipment per Items 13 and 12 below prorated
between carriers based on percentage of moves utilizing gate outside standard terminal gate
hours. Current standard gate hours are 0800 to 1700 Monday, Wednesday, and Thursday and 0700
to 1700 Tuesday and Friday. Holiday gates which are included in the base lift rate are stated
on the attached schedule.
	 
	 	 	UMS reserves the right to change the standard gate hours if proforma or volume changes warrant it.
If the terminal operator chooses to open during the lunch period or operate flex gates there will
be no extra charge to the carrier. Overtime gate charges also apply to ILA holidays.
	 
	 	 	Note: A flat fee of $ * will be charged for receiving containers between 1700 to 1900
hours on Friday.

	 	 	 	 	 	 	 	 	 	 	 
	7.

	 	Extra Gate Moves (exceeding the * gate moves included per
vessel lift). Billing to be done on a calendar month basis.
	 	$	 	 	 	 * per move	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	8.	 	Mounting/Grounding —	 	Straight Time $ *
	 	 	 	 	Overtime        $ *

	 	 	 
	**	 	Subject to minimum labor guarantees

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

9

 

Each container that is required to be handled within stack to carry out request will be charged a
mount and/or ground fee. Also, this item would apply if there is an overall change by Horizon
Lines in the mode of operation. This rate will include drayage of container within the terminal.
In regards to For Sale and Off Hire containers, if a trucker requests a specific container number,
then Contractor will charge a mounting/grounding charge per move shifted/handled, excluding the move for
the container delivered.

In addition, in the event that the Carrier changes its mode of operation or makes a special request
to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to
order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates (Items 13 and
12 below).

Carrier has option of paying on Extra labor plus equipment basis (Items 13 and 12 below) subject to
minimum labor guarantees.

	9.	 	Miscellaneous Parts for Roadability — Carrier to negotiate directly with M and R vendor.
	 
	 	 	This is not applicable to Maersk owned chassis.
	 
	10.	 	Maintenance — Carrier to handle directly with M and R vendor.

	 	 	 	 	 
	11.

	 	Drayage	 	 
	 

	 	Customs Vacis/Security/Government exams
	 	Per Terminal Tariff
	 

	 	Other drays within terminal
	 	$ * one way

	12.	 	Equipment Rental Rates (when ordered by Carrier; excludes operator)

	 	 	 	 	 
	 

	 	- Top Loader
	 	$ * per hour
	 

	 	- Yard Hustler
	 	$ * per hour
	 

	 	- Empty Handler
	 	$ * per hour
	 

	 	- Bombcart
	 	$ * per hour
	 

	 	- Container Crane
	 	Per APM Terminals contract rate with Port Authority

	 	 	 	 	 	 	 	 	 
	13.

	 	Extra Labor Rates
	 	Straight Time
	 	$ * Double Time
	 	$ *
	 

	 	Overtime
	 	$ * Double Overtime
	 	$ *	 	 
	 
	 	 	 	 	 	 	 	 
	14.	 	Dockage and Wharfage	 	— Charged at APM Terminals contract rate with Port Authority.
	 
	 	 	 	 	 	 	 	 
	15.	 	Line Handling	 	— Actual Man hours at Extra labor rates plus any man hour guarantees.

	16.	 	Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * or allowed mounting/grounding and will be billed $ * per container. (Excludes demurrage)

	17.	 	Terminal storage charges

	 	 	 	 	 
	 

	 	— Storage of empty containers
	 	$ * per unit per day

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____ 

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____ 

 

10

 

Empty allowance will be determined by multiplying the Carrier’s container lift volume each
month times * times the number of days in the month. Excess empty container days over
such allowed free days will be charged monthly at the following rate per container per day.
(Free Days = Lifts x * x Days in Period)

Notwithstanding the means of calculating Carrier’s empty allowance stated above, the

parties agree when the Contractor notifies the Carrier that empty storage of equipment
meets or exceeds the storage cap, Carrier will be required to present the respective
terminal with an empty evacuation plan to reduce the number of empties below the cap
within a fourteen (14) day period. Daily storage cap is equal to * of the Carrier’s
previous year’s annual throughput.

	 	 	 	 	 
	18.

	 	Demurrage —
	 	Terminal Operator will bill, collect, and retain demurrage from carrier
according to the terminal tariff in effect on October 15, 2006. Below is the table of rates
from the terminal tariff.

	 	 	 	 
	 	Free time for export cargo is

	 	* calendar days.
	 	Free time for import cargo is

	 	* business days for dry containers and * business days for temperature controlled containers.

	 	 	 	 	 	 	 	 	 	 
	 	 	Demurrage Rates (per 20’/40’ container per
calendar day or part thereof)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 	 	Inbound/Outbound/Transshipments	 	 	 	 	 
	 
	 
	 	I) 	 	One to Ten (1 — 10) Days (first period)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Dry General Purpose containers/Non-operating Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Operating Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Flat Racks, Open Tops, and Special Equipment	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Tank Containers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	II)	 	Eleventh Day and Above (second period)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Dry General Purpose containers/Non-operating  Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Operating Reefers	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Flat Racks, Open Tops, and Special Equipment	 	$	 	*	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Tank Containers	 	$	 	*	 

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

11

 

The only exception is that the Contractor shall grant Carrier * business days free time for
autoracks, pallet loads, and dunnage provided that Carrier provides a list of these containers to
Contractor 48 hours prior to vessel’s arrival.

	 	 	 	 	 
	19.

	 	Lashing/Unlashing of breakbulk cargo on board vessel
	 	Extra labor man hour rates plus materials at cost plus *
	 
	 	 	 	 	 	 
	20.

	 	Bundling of Chassis/Flat Racks
	 	$  * per chassis/flat plus materials

	 	 	 
	**	 	Subject to minimum labor guarantees 

	21.	 	Out of service equipment (containers and chassis) remaining on terminal in excess of *
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container/chassis per day.
	 
	 	 	If container is able to be stacked in a normal manner and fits in one container slot then
storage only applies. (Item 17 above)
	 
	22.	 	Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Items 13 and 12 above).

	 	 	 	 	 	 	 
	23.

	 	Chassis Switching charge
	 	Straight Time
	 	$ *
	 

	 	 	 	Overtime
	 	$ *
	 
	 	 	 	 	 	 
	 

	 	To/From truckers equipment. From/To chassis.
Switching of reefer containers
from underslung genset chassis.	 	 	 	 
	 
	 	 	 	 	 	 
	24.

	 	Reefer Fuel will be charged based on the following formula:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer fuel for
the month at fuel vendor’s charge to Contractor plus *.
	 
	 	 	 	 	 	 
	 	 	Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days advance
notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based on the
average weekly cost as published by government at the following web site (or similar web site if
this site no longer exists)
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

	 	 	 	 	 
	25.

	 	Security Guard, on Overtime
	 	$ * per hour

			
	 	 	 
	 
	 	Horizon Lines Initials _TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____

 

12

 

Horizon Lines

Terminal Services Rates at

APM Terminals — Los Angeles, CA

Rates Effective January 1, 2010 to June 30, 2010

	 	 	 	 	 	 	 
	1.

	 	A.
	 	Discharge or Load — Base Rate — per marine lift
	 	$ *
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Transshipment per move
	 	$ *
	 

	 	C.
	 	Shifting Cell to Cell within the same hatch
	 	$ *
	 

	 	D.
	 	Restowing container Cell to Dock to Cell
	 	$ *
	 

	 	E.
	 	Overheight unit lifted with overheight spreader (no wires)
	 	$ * per lift

Rate includes first shift weekday stevedoring staff/gangs, normal container lashing/unlashing on
vessel (excluding detentions), crane rental, tractors during vessel operations, assisting in
receiving and delivery, wharfage, dockage, clerking and checking during vessel operations, weighing
of export containers, cargo plan preparation, roadability check (labor only), visual seal
inspection at gate, and load/empty cycle to/from vessel including tir preparation. Standard
operational procedure is a grounded operation with the exception of reefers, special hazardous and
loaded tank containers.

Receiving and delivery gates will be in operation for first shift (0800 — 1700) and second shift
(1800 — 0300) on weekdays excluding holidays. If the terminal operator chooses to open during the
lunch period or open 0700 to 0800 hours weekdays, there will be no extra charge to the carrier.
Friday second shift for wheeled operation only.

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month total
gate moves that exceed the allowed number of gate moves, will be invoiced to the carrier as per
Item 7 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading to
a vessel or barge. Each container will be invoiced two transshipment moves.

APMT agrees to have * Horizon Lines Owned empty reefers and * Horizon Lines Owned 45’
empties wheeled on a daily basis
A communication plan from Horizon Lines will be agreed to by
APMT and direct the daily execution of such agreement.

Lifting Bundles of Flat Racks/Chassis —

	 	A.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge
	 
	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates

			
	 	 	 
	 
	 	Horizon Lines Initials
__TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials
__MO_____

 

13

 

	 	B.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge
	 
	 	ii.	 	Contract charge for bundling/unbundling
	 
	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates
	 
	 	ii.	 	Contract charge for bundling / unbundling

	 	C.	 	If the contractor locks (or unlocks) and secures empty flatracks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat loaded/discharged provided that the contractor follows the stow
plan provided by the carrier with relation to the stowage of flatracks.

(i.e. If 4 flats are locked together shoreside and lifted as one unit to the vessel,
the lift charge to the carrier will be 4 x base lift rate)

	 	 	 	 	 	 	 
	2.

	 	A.
	 	Reefer Differential assessed to each loaded reefer for plug/unplug
services, quality check at time of discharge /loading,
record keeping, administrative services. This rate does not include pre-tripping, labor to fuel
genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for
reefers received/delivered with no vessel activity.
	 	$ *
per loaded reefer
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Daily Reefer monitoring and electric charges per calendar day or
portion thereof (minimum one day)
	 	$ *
Daily charge
	 
	 	 	 	 	 	 
	 

	 	 	 	First Calendar Day to receive a * discount from stated rate.	 	 

	3.	 	Maintenance and Repair (M and R) Man Hour Rates

	 	 	 	 	 	 	 
	1st Shift Straight Time

	 	$ *
	 	1st Shift Overtime
	 	$ *
	2nd Shift Straight Time

	 	$ *
	 	2nd Shift Overtime
	 	$ *
	3rd Shift Straight Time

	 	$ *
	 	3rd Shift Overtime
	 	$ *

	 	 	 
	Installing or Removing Gensets

	 	- 30 minutes at the applicable M and R man hour rate plus $ *
	Fueling Gensets

	 	- 12 minutes at the applicable M and R man hour rate
	 
	 	 
	Fuel for Gensets:

	 	- covered in item no. 27
	 
	 	 
	Stringing of Gensets

	 	- 15 minutes at the applicable M and R man hour rate

	 	 	 	 	 	 	 
	4.

	 	A.
	 	Standby/Guarantee per Gang per hour	 	 
	 

	 	 	 	Weekday, 1st Shift Straight Time
	 	$ *
	 
	 	 	 	 	 	 
	 

	 	 	 	In addition, overtime differentials (Item 5) will apply based on period.	 	 
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Extra Labor/Heavy Lifts per Gang per hour	 	 
	 

	 	 	 	Weekday, 1st Shift Straight Time
	 	$ *
	 
	 

	 	 	 	In addition, overtime differentials (Item 5) will apply based on period.	 	 

			
	 	 	 
	 
	 	Horizon Lines Initials
__TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials
__MO_____

 

14

 

	 	 	 	 	 	 	 
	 

	 	C.
	 	Detentions per Gang per Hour	 	 
	 

	 	 	 	(See Appendix 1 “Detentions” for list of billable and non-billable detentions)	 	 
	 

	 	 	 	Weekday, 1st Shift Straight Time
	 	$ *
	 
	 	 	 	 	 	 
	 

	 	 	 	In addition, overtime differentials (Item 5) will apply based on period.	 	 

	5.	 	Overtime Differentials per Gang per hour

	 	 	 	 	 	 	 
	Weekday, 2nd Shift

	 	$ *
	 	Weekend, 3rd Shift
	 	$ *
	Weekday, 3rd Shift

	 	$ *
	 	Holiday, 1st/2nd Shift Weekday
	 	$ *
	Weekend, 1st Shift

	 	$ *
	 	Holiday, 3rd Shift Weekday
	 	$ *
	Weekend, 2nd Shift

	 	$ *	 	 	 	 

	6.	 	Overtime Gate Charges — Extra labor plus equipment per Items 14 and 12 prorated between
Carriers based on percentage of moves utilizing gate. Terminal to charge only when outside of
First and Second shift on straight time workdays (i.e. Monday through Friday excluding
Holidays). Holiday gates which are included in the base lift rate are stated on attached
schedule. Flex gate on first and second shift Friday will be provided at no extra charge.

	 	 	 	 	 
	7.

	 	Extra Gate Moves (exceeding the * gate moves included per
vessel lift). Billing to be done on a calendar month basis.
	 	$ * per move

	 	 	 	 	 	 	 
	8.

	 	Mounting/Grounding
	 	Weekday, 1st Shift
	 	$ * per move
	 

	 	 	 	Weekday, 2nd Shift
	 	$ * per move
	 

	 	 	 	Weekday, 3rd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 1st/2nd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 3rd Shift
	 	$ * per move

	 	 	 
	**	 	Subject to minimum labor guarantee

Mounting and Grounding will only be charged when performed outside of the normal throughput cycle.
This includes but is not limited to digging out empty containers by container number, for sale
containers, off hire containers, containers moving to/from repair,
unusual requests requiring restacking of full containers, etc. Each container that is required to
be handled within stack to carry out request will be charged a mount and/or ground fee.

Also, this would apply if there is an overall change by Horizon Lines in the mode of operation.
This rate will include drayage of container within the terminal. In regards to For Sale and Off
Hire containers, if a trucker requests a specific container number, then Contractor will charge a
mounting/grounding charge per move shifted/handled, excluding the move for the container delivered.

In addition, in the event that the Carrier changes its mode of operation or makes a special request
to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to
order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates (Items 14 and
12 below).

			
	 	 	 
	 
	 	Horizon Lines Initials
__TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials
__MO_____

 

15

 

	9.	 	Miscellaneous Parts for Roadability — Carrier to handle directly with M and R vendor. This
is not applicable to Maersk owned chassis.

	 	 	 	 	 
	10.

	 	Lashing/Unlashing of breakbulk cargo on board vessel
	 	Extra labor man hour rates plus

materials at cost plus *

	11.	 	This item intentionally left blank.
	 
	12.	 	Equipment Rental Rates (when ordered by Carrier; excludes operator)

	 	 	 
	- Top Loader

	 	$ * per hour
	- Yard Hustler

	 	$ * per hour
	- Empty Handler

	 	$ * per hour
	- Transtainer

	 	$ * per hour
	- Bombcart

	 	$ * per hour
	- Container Crane

	 	$ * per hour

	 	 	 	 	 
	13.

	 	Container lift on/lift off Rail Car at on dock rail facility
	 	$ * per lift
	 
	 	 	 	 
	14.

	 	Extra Labor Rates per man hour subject to minimum guarantees	 	 

	 	 	 	 	 	 	 
	Weekday, 1st Shift

	 	$ *
	 	Weekend, 1st Shift
	 	$ *
	Weekday, 2nd Shift

	 	$ *
	 	Weekend, 2nd Shift
	 	$ *
	Weekday, 3rd Shift

	 	$ *
	 	Weekend, 3rd Shift
	 	$ *

	15.	 	Line Handling — Carrier to handle payment directly with vendor.
	 
	16.	 	Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * gate moves or allowed mounting/grounding and will be
billed $ * per container for receipt/delivery (Excludes demurrage).

	17.	 	Terminal storage charges

	 	 	 
	— Storage of empty containers

	 	$ * per unit per day

Empty allowance will be determined by multiplying the Carrier’s container lift volume each
month times * times the number of days in the month. Excess empty container days over
such allowed free days will be charged monthly at the following rate per container per day.
(Free Days = Lifts x * x Days in Period)

Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree
when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds the
storage cap, Carrier will be required to present the respective terminal with an empty evacuation
plan to reduce the number of empties below the cap within a fourteen (14) day period. Daily
storage cap is equal to * empty containers.

			
	 	 	 
	 
	 	Horizon Lines Initials
__TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials
__MO_____

 

16

 

	18.	 	Demurrage — Terminal Operator will bill, collect, and retain demurrage from carrier according
to the terminal tariff.

The only exception is that the Contractor shall grant Carrier * business days free time for
autoracks, pallet loads, and dunnage provided that Carrier provides a list of these containers to
Contractor 48 hours prior to vessel’s arrival.

	 	 	 	 	 	 	 
	19.

	 	Custom Vacis/Security /USDA Exams/other government exams
	 	 	 	Per Terminal Tariff
	 
	 	 	 	 	 	 
	 

	 	Other drays within terminal premises not associated
with throughput cycle.
	 	 	 	$ * one way
	 
	 	 	 	 	 	 
	20.

	 	Bundling of Chassis/Flat Racks,
	 	Weekday, 1st Shift
	 	$ * per chassis/flat

bundled plus materials

	 
	 	 	 	 	 	 
	21.

	 	Premounting of Empties
	 	Weekday, 1st Shift
	 	$ * per unit
	 

	 	 	 	Weekday, 2nd Shift
	 	$ * per unit

	22.	 	Out of service equipment (containers and chassis) remaining on terminal in excess of *
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container per day.
	 
	 	 	If container is able to be stacked in a normal manner and fits in one container slot then storage
(Item 17) only applies.
	 
	23.	 	Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Items 14 and 12 above).
	 
	24.	 	Fuel Surcharge (as of January 2010) $ * per lift

Fuel Surcharge is based on the Bureau of Labor Statistics Producer Price Index No 2 Diesel Fuel
with February 2004 to February 2005 as the basis. This will be reviewed /
adjusted once a year if fuel prices fall below the February 2005 level and eliminated if prices
fall below the February 2004 level.

	 	 	 	 	 	 	 
	25.

	 	Chassis Switching charge
	 	Weekday, 1st Shift
	 	$ * per move
	 

	 	 	 	Weekday, 2nd Shift
	 	$ * per move
	 

	 	 	 	Weekday, 3rd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 1st/2nd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 3rd Shift
	 	$ * per move

To/From truckers equipment From/To chassis

Switching of reefer containers from underslung genset chassis

	 	 	 
	**	 	Subject to minimum labor guarantees

			
	 	 	 
	 
	 	Horizon Lines Initials
__TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials
__MO_____

 

17

 

	26.	 	Reefer Fuel will be charged based on the following formula
	 
	 	 	The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer fuel for
the month at fuel vendor’s charge to Contractor plus *.
	 
	 	 	Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days advance
notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based on the
average weekly cost as published by government at the following web site (or similar web site if
this site no longer exists)
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

			
	 	 	 
	 
	 	Horizon Lines Initials
__TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials
__MO_____

 

18

 

Horizon Lines

Terminal Services Rates at

APM Terminals — Los Angeles, CA

Baseline Rates Schedule effective January 1, 2011 Rates to be adjusted Labor/CPI increases as per

Agreement Appendix V and VI

The rates in this Appendix effective on January 1, 2011 shall be the numbers listed below, provided
however that such numbers are only baseline numbers and each shall be increased by the amount of
the increases as described in Sections 6(b), 12(a), 12(b) and 12(c) of the Terminal Agreement dated
as of May 9, 2004 (the “Original Agreement”) during the time period prior to January 1, 2011 and
Sections 12(a), 12(b) and 12(c) as revised in Amendment 2 dated November 30, 2006.

For example, if the rate item no. 1A for Los Angeles in the Original Agreement CPI/Labor increases
on July 1, 2010 by *, then the $ * baseline rate listed below shall be increased to $ *.
The subsequent increases in the Original Agreement would also be applied to this rate through
December 31, 2010. All rates in the below schedule would be adjusted in a similar manner based on
their percentage increase in the Original Agreement

	 	 	 	 	 	 	 
	1.      A.	 	 Discharge or Load — Base Rate — per marine lift 

up to * lifts per calendar year
	 	$	*	 
	 	 	* lifts and above per calendar year
	 	$	*	 

The first * lifts rate is $ * and lifts above * rate is $ *

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	        B.	 	 Transshipment per move
	 	$	*	 	 	 	 	 
	        C.	 	 Shifting Cell to Cell within the same hatch
	 	$	*	 	 	 	 	 
	        D.	 	 Restowing container Cell to Dock to Cell
	 	$	*	 	 	 	 	 
	        E.	 	 Overheight unit lifted with overheight spreader (no wires)
	 	$	*	 	 	per lift

Rate includes first and second shift seven days a week (holidays excluded) stevedoring staff/gangs,
normal container lashing/unlashing on vessel (excluding detentions), crane rental, tractors during
vessel operations, assisting in receiving and delivery, wharfage, dockage, clerking and checking
during vessel operations, weighing of export containers, cargo plan preparation, roadability check
(labor only), visual seal inspection at gate, and load/empty cycle to/from vessel including tir
preparation. Standard operational procedure is a grounded operation with the exception of reefers,
special hazardous and loaded tank containers.

Receiving and delivery gates will be in operation for first shift (0800 — 1700) and second shift
(1800 — 0300) on weekdays excluding holidays. If the terminal operator chooses to open during the
lunch period or open 0700 to 0800 hours weekdays, there will be no extra charge to the carrier.
Friday second shift for wheeled operation only.

			
	 	 	 
	 
	 	Horizon Lines Initials _TC____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO____

 

19

 

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month total
gate moves that exceed the allowed number of gate moves, will be invoiced to the carrier as per
Item 7 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading to
a vessel or barge. Each container will be invoiced two transshipment moves.

APMT agrees to have * Horizon Lines Owned empty reefers and * Horizon Lines Owned 45’
empties wheeled on a daily basis A communication plan from Horizon Lines will be agreed to by
APMT and direct the daily execution of such agreement.

Lifting Bundles of Flat Racks/Chassis -

	 	G.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge

	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates

	 	H.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge

	 
	 	ii.	 	Contract charge for bundling/unbundling

	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates

	 
	 	ii.	 	Contract charge for bundling / unbundling

	 	I.	 	If the contractor locks (or unlocks) and secures empty flatracks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat loaded/discharged provided that the contractor follows the stow
plan provided by the carrier with relation to the stowage of flatracks. 

(i.e. If 4 flats are locked together shoreside and lifted as one unit to the vessel,
the lift charge to the carrier will be 4 x base lift rate)

	 	 	 	 	 	 	 
	2.      A.	 	Reefer Differential assessed to each loaded reefer for plug/unplug
services, quality check at time of discharge /loading,
record keeping, administrative services. This rate does not include pre-tripping, labor to fuel
genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for
reefers received/delivered with no vessel activity.
	 	 	 	$   * per loaded reefer
	 	 	 
	 	 	 	 
	         B.	 	Daily Reefer monitoring and electric charges per calendar day or
portion thereof (minimum one day)
	 	 	 	$   * Daily charge
	 	 	 
	 	 	 	 
	 	 	First Calendar Day to receive a * discount from stated rate.
	 	 	 	 

			
	 	 	 
	 
	 	Horizon Lines Initials _TC____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____

 

20

 

	 	 	 	 	 	 	 	 	 
	3.

	 	Maintenance and Repair (M and R) Man Hour Rates	 	 	 	 	 	 
	 

	 	1st Shift Straight Time
	 	$     *
	 	1st Shift Overtime
	 	$     *
	 

	 	2nd Shift Straight Time
	 	$     *
	 	2nd Shift Overtime
	 	$     *
	 

	 	3rd Shift Straight Time
	 	$     *
	 	3rd Shift Overtime
	 	$     *

	 	 	 	 	 
	 

	 	Installing or Removing Gensets
	 	- 30 minutes at the applicable M and R man hour rate plus $ *
	 

	 	Fueling Gensets
	 	- 12 minutes at the applicable M and R man hour rate
	 
	 

	 	Fuel for Gensets:
	 	- covered under item no. 27
	 
	 

	 	Stringing of Gensets
	 	- 15 minutes at the applicable M and R man hour rate

	 	 	 	 	 
	4.     A.
	 	Standby/Guarantee per Gang per hour

	 	 
	       
Weekday, 1st Shift Straight Time

	 	$       *

In addition, overtime differentials (Item 5) will apply based on period.

	 	 	 	 	 	 	 	 	 
	 	B.	 	 	Extra Labor/Heavy Lifts per Gang per hour

	 	 	 	 
	 	
Weekday, 1st Shift Straight Time
	 	$	*	 

In addition, overtime differentials (Item 5) will apply based on period.

	 	 	 	 	 	 	 	 	 
	 	C.	 	 	Detentions per Gang per Hour

(See Appendix 1 “Detentions” for list of billable and non-billable detentions)

	 	 	 	 
	 	
Weekday, 1st Shift Straight Time
	 	$	*	 

In addition, overtime differentials (Item 5) will apply based on period.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5.	 	 	Overtime Differentials per Gang per hour	 	 	 	 	 	 	 	 
	 	 	 	 	Weekday, 2nd Shift
	 	$     *	 	Weekend, 3rd Shift	 	$	     	*
	 	 	 	 	Weekday, 3rd Shift
	 	$     *	 	Holiday, 1st/2nd Shift Weekday	 	$	     	*
	 	 	 	 	Weekend, 1st Shift
	 	$     *	 	Holiday, 3rd Shift Weekday	 	$	     	*
	 	 	 	 	Weekend, 2nd Shift
	 	$     *	 	 	 	 	 	 	 	 

	6.	 	Overtime Gate Charges — Extra labor plus equipment per Items 14 and 12 prorated between
Carriers based on percentage of moves utilizing gate. Terminal to charge only when outside of
First and Second shift on straight time workdays (i.e. Monday through Friday excluding
Holidays). Holiday gates which are included in the base lift rate are stated on attached
schedule. Flex gate on first and second shift Friday will be provided at no extra charge.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	7.	 	 	Extra Gate Moves (exceeding the * gate moves included per
vessel lift). Billing to be done on a calendar month basis.
	 	 	 	 	 	$ * per move

			
	 	 	 
	 
	 	Horizon Lines Initials _TC____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____

 

21

 

	 	 	 	 	 	 	 	 	 	 	 	 
	8.	 	 	Mounting/Grounding
	 	Weekday, 1st Shift	 	 	 	$ * per move
	 	 	 	 
	 	Weekday, 2nd Shift	 	 	 	$ * per move
	 	 	 	 
	 	Weekday, 3rd Shift	 	 	 	$ * per move
	 	 	 	 
	 	Weekend, 1st/2nd Shift	 	 	 	$ * per move
	 	 	 	 
	 	Weekend, 3rd Shift	 		 	$ * per move

	 	 	 
	**	 	Subject to minimum labor guarantee

Mounting and Grounding will only be charged when performed outside of the normal throughput cycle.
This includes but is not limited to digging out empty containers by container number, for sale
containers, off hire containers, containers moving to/from repair, unusual requests requiring
restacking of full containers, etc. Each container that is required to be handled within stack to
carry out request will be charged a mount and/or ground fee.

Also, this would apply if there is an overall change by Horizon Lines in the mode of operation.
This rate will include drayage of container within the terminal. In regards to For Sale and Off
Hire containers, if a trucker requests a specific container number, then Contractor will charge a
mounting/grounding charge per move shifted/handled, excluding the move for the container delivered.

In addition, in the event that the Carrier changes its mode of operation or makes a special request
to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to
order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates (Items 14 and
12 below).

	9.	 	Miscellaneous Parts for Roadability — Carrier to handle directly with M and R vendor. This
is not applicable to Maersk owned chassis.

	 	 	 	 	 
	10.

	 	Lashing/Unlashing of breakbulk cargo on board vessel
	 	Extra labor man hour rates plus
materials at cost plus * percent

	11.	 	This item intentionally left blank.

	12.	 	Equipment Rental Rates (when ordered by Carrier; excludes operator)

	 	 	 	 	 	 	 
	 

	 	- Top Loader

- Yard Hustler

- Empty Handler

- Transtainer

- Bombcart

- Container Crane
	 	

	 	$ * per hour

$ * per hour

$ * per hour

$ * per hour

$ * per hour

$ * per hour

	 	 	 	 	 	 	 	 	 	 	 	 
	13.	 	 	Container lift on/lift off Rail Car at on dock rail facility
	 	 	 	 	 	$ * per lift
	 	 	 	 
	 	 	 	 	 	 	 	 
	14.	 	 	Extra Labor Rates per man hour subject to minimum guarantees
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	Weekday, 1st Shift
	 	$ *
	 	Weekend, 1st Shift
	 	$ *
	 

	 	Weekday, 2nd Shift
	 	$ *
	 	Weekend, 2nd Shift
	 	$ *
	 

	 	Weekday, 3rd Shift
	 	$ *
	 	Weekend, 3rd Shift
	 	$ *

			
	 	 	 
	 
	 	Horizon Lines Initials
_TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO_____

 

22

 

	15.	 	Line Handling — Carrier to handle payment directly with vendor.

	16.	 	Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * gate moves or allowed mounting/grounding and will be
billed $ * per container for receipt/delivery (Excludes demurrage).

	 	 	 	 	 	 	 	 	 	 	 	 
	17.	 	 	Terminal storage chargesc

     — Storage of empty containers
	 	$	 *	 	per unit per day

Empty allowance will be determined by multiplying the Carrier’s container lift volume each
month times * times the number of days in the month. Excess empty container days over
such allowed free days will be charged monthly at the following rate per container per day.
(Free Days = Lifts x * x Days in Period)

Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree
when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds the
storage cap, Carrier will be required to present the respective terminal with an empty evacuation
plan to reduce the number of empties below the cap within a fourteen (14) day period. Daily
storage cap is equal to * empty containers.

	18.	 	Demurrage — Terminal Operator will bill, collect, and retain demurrage from carrier according
to the terminal tariff.

The only exception is that the Contractor shall grant Carrier * business days free time for
autoracks, pallet loads, and dunnage provided that Carrier provides a list of these containers to
Contractor 48 hours prior to vessel’s arrival.

	 	 	 	 	 	 	 
	19.	 	Custom Vacis/Security /USDA Exams/other government exams	 	Per Terminal Tariff
	 	 	 
	 	 	 	 
	 	 	Other drays within terminal premises not associated with throughput cycle.
	 	$	*	 one way
	 	 	 
	 	 	 	 
	20.	 	Bundling of Chassis/Flat Racks, Weekday, 1st Shift
	 	$   	*	 per chassis/flat bundled plus materials
	 	 	 
	 	 	 	 
	21.	 	Premounting of Empties            
Weekday, 1st Shift
	 	$   	*	 per unit
	 	 	Weekday, 2nd Shift
	 	$   	*	 per unit

	22.	 	Out of service equipment (containers and chassis) remaining on terminal in excess of *
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container per day.

If container is able to be stacked in a normal manner and fits in one container slot then storage
(Item 17) only applies.

Horizon Lines Initials _TC___

			
	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

23

 

	23.	 	Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Items 14 and 12 above).

	 	 	 	 	 	 	 	 	 	 	 
	24.	 	Fuel Surcharge as of January 2010

Fuel Surcharge is based on the Bureau of Labor Statistics Producer Price Index No 2 Diesel Fuel
with February 2004 to February 2005 as the basis. This will be reviewed /
adjusted once a year if fuel prices fall below the February 2005 level and eliminated if prices
fall below the February 2004 level.
	 	 	 	 	$	*	 	per lift
	 	 	 	 	 	 	 	 	 	 	 
	25.	 	Chassis Switching charge
	 	Weekday, 1st Shift	$	*	 	per move
	 	 	 
	 	Weekday, 2nd Shift	$	*	 	per move
	 	 	 
	 	Weekday, 3rd Shift	$	*	 	per move
	 	 	 
	 	Weekend, 1st/2nd Shift	$	*	 	per move
	 	 	 
	 	Weekend, 3rd Shift	$	*	 	per move

To/From truckers equipment From/To chassis

Switching of reefer containers from underslung genset chassis

	 	 	 
	**	 	Subject to minimum labor guarantees

	26.	 	Reefer Fuel will be charged based on the following formula
The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer fuel for
the month at fuel vendor’s charge to Contractor plus *.

Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days advance
notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based on the
average weekly cost as published by government at the following web site (or similar web site if
this site no longer exists)
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

Horizon Lines Initials _TC___

			
	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

24

 

Horizon Lines

Terminal Services Rates at

APM Terminals – Tacoma, WA

Rates Effective January 1, 2010 to June 30, 2010

	 	 	 	 	 
	1.      A.

	 	Discharge or Load – Base Rate – per marine lift
	 	$ *
	 
	 	 	 	 
	         B.

	 	Transshipment per move
	 	$ *
	         C.

	 	Shifting Cell to Cell within the same hatch
	 	$ *
	         D.

	 	Restowing container Cell to Dock to Cell
	 	$ *
	         E.

	 	Overheight unit lifted with overheight spreader (no wires)
	 	$ * per lift

Rate includes first shift weekdays stevedoring staff/gangs, normal container lashing/unlashing on
vessel (excluding detentions), crane rental, tractors during vessel operations, assisting in
receiving and delivery, wharfage, dockage, clerking and checking during vessel operations, weighing
of export containers, cargo plan preparation, roadability check (labor only), visual seal
inspection at gate and load/empty cycle to/from vessel including tir preparation.

Current standard operational procedure is for imports/exports to be wheeled. Also, APMT agrees to
have * Horizon Lines Owned empties wheeled on a daily basis, which includes * empties in
good order, * wheeled empties for M & R and, if available, * Maersk empties provided
containers required by Horizon customers and no additional mounting team is required, with a
maximum daily allowance of * empties on terminal. A communication plan from Horizon Lines will
be agreed to by APMT and direct the daily execution of such agreement. At which time increase in
volume at the facility restricts space for a wheeled operation, imports/exports will be grounded
and/or wheeled empties will be restricted. At least 90 days prior to any change of handling
wheeled containers APMT will discuss options with Horizon Lines and mutually agree on a workable
solution and associated costs.

Receiving and delivery gates will be in operation from 0800 to 1200 and from 1300 to 1700* on
straight time workdays. If the terminal operator chooses to open during the lunch period or to
open from 0700 to 0800 hours weekdays, there will be no extra charge to the carrier.

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month total
gate moves that exceed the allowed number of gate moves, will be invoiced to the carrier as per
Item 7 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading to
a vessel or barge. Each container will be invoiced two transshipment moves.

	 	 	 
	*	 	Specifically,

Drivers receiving/delivering empties must be processed by * hours.

Drivers receiving /delivering live reefers must be processed by * hours.

Drivers receiving import loads must be processed by * hours.

Drivers delivering wheeled export loads (except live reefers) must be processed by *.

			
	 	 	 
	 
	 	Horizon Lines Initials      TC          
	 	 	 
	Second Revised Appendix II
	 	APMT Initials      MO          

 

25

 

Second shift gates Wednesday and Fridays:

Drivers receiving/delivering empties must be processed by * hours.

Lifting Bundles of Flat Racks/Chassis —

	 	J.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge
	 
	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates

	 	K.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge
	 
	 	ii.	 	Contract charge for bundling/unbundling
	 
	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates
	 
	 	ii.	 	Contract charge for bundling / unbundling

	 	L.	 	If the contractor locks (or unlocks) and secures empty flatracks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat loaded/discharged provided that the contractor follows the stow
plan provided by the carrier with relation to the stowage of flatracks.

(i.e. If 4 flats are locked together shoreside and lifted as one unit to the vessel,
the lift charge to the carrier will be 4 x base lift rate)

	 	 	 	 	 
	2.      A.

	 	Reefer Differential assessed to each loaded reefer for plug/unplug
services, quality check at time of discharge /loading,
record keeping, administrative services. This rate does not include pre-tripping, labor to fuel
genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for
reefers received/delivered with no vessel activity.
	 	$ * per loaded reefer
	 
	 	 	 	 
	         B.

	 	Daily Reefer monitoring and electric charges per calendar day or
portion thereof (minimum one day charge)
	 	$ * Daily charge

First Calendar Day to receive a * discount from stated rate.

	 	 	 	 	 	 	 	 	 
	3.	 	Maintenance and Repair (M and R) Man Hour Rates
	 

	 	1st Shift Straight Time
	 	$ * 
	 	1st Shift Overtime
	 	$ * 
	 

	 	2nd Shift Straight Time
	 	$ * 
	 	2nd Shift Overtime
	 	$ * 
	 

	 	3rd Shift Straight Time
	 	$ * 
	 	3rd Shift Overtime
	 	$ * 

	 	 	 
	Installing or Removing Gensets

	 	- 30 minutes at the applicable M and R man hour rate plus $ *
	Fueling Gensets

	 	- 12 minutes at the applicable M and R man hour rate
	Stringing of Gensets

	 	- 15 minutes at the applicable M and R man hour rate

			
	 	 	 
	 
	 	Horizon Lines Initials      TC          
	 	 	 
	Second Revised Appendix II
	 	APMT Initials      MO          

 

26

 

	 	 	 	 	 
	4.      A.

	 	Standby/Guarantee per Gang per hour	 	 
	Weekday, 1st Shift Straight Time

	 	$ *

In addition, overtime differentials (Item 5) will apply based on period.

	 	 	 	 	 
	         B.

	 	Extra Labor/Heavy Lifts per Gang per hour	 	 
	Weekday, 1st Shift Straight Time

	 	$ *

In addition, overtime differentials (Item 5) will apply based on period.

	 	 	 	 	 
	         C.

	 	Detentions per Gang per Hour	 	 
	 

	 	(See Appendix 1 “Detentions” for list of billable and non-billable detentions)	 	 
	Weekday, 1st Shift Straight Time

	 	$ * 

In addition, overtime differentials (Item 5) will apply based on period.

	 	 	 	 	 	 	 	 	 
	5.	 	Overtime Differentials per gang per hour
	 

	 	Weekday, 2nd Shift
	 	$ * 
	 	Weekend, 3rd Shift
	 	$ * 
	 

	 	Weekday, 3rd Shift
	 	$ * 
	 	Holiday, 1st/2nd Shift Weekday
	 	$ * 
	 

	 	Weekend, 1st Shift
	 	$ * 
	 	Holiday, 3rd Shift Weekday
	 	$ * 
	 

	 	Weekend, 2nd Shift
	 	$ * 	 	 	 	 

	6.	 	Overtime Gate Charges – Extra labor plus equipment per Items 13 and 12 below prorated between
carriers based on percentage of moves utilizing gate outside standard terminal gate hours.
Current standard gate hours are 0800 to 1700 Monday through Friday on straight time workdays.
If the terminal operator chooses to open during the lunch period or operate flex gates there
will be no extra charge to the carrier. Overtime gate charges also apply to ILWU holidays.
Holiday gates which are included in the base lift rate are stated on attached schedule.
	 
	 	 	A flat rate will apply for second shift gate on Tuesday or Thursday of $ * per shift, and a
flat rate on Wednesday or Friday of $ * per shift. If Horizon Lines wishes to remain open from
1700 -1800 any night this cost will be absorbed by Horizon Lines.
	 
	 	 	A flat rate of $ * will be charged for 1st /2nd shift gate on Saturdays.
This was increased in August 2008.

	 	 	 	 	 
	7.

	 	Extra Gate Moves (exceeding the * gate moves included per
vessel lift). Billing to be done on a calendar month basis.
	 	$ * per move

			
	 	 	 
	 
	 	Horizon Lines Initials      TC          
	 	 	 
	Second Revised Appendix II
	 	APMT Initials      MO          

 

27

 

	 	 	 	 	 	 	 
	8.

	 	Mounting/Grounding
	 	Weekday, 1st Shift
	 	$ * per move
	 

	 	 	 	Weekday, 2nd Shift
	 	$ * per move
	 

	 	 	 	Weekday, 3rd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 1st/2nd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 3rd Shift
	 	$ * per move

	 	 	 
	**	 	Subject to minimum labor guarantees

	 	 	Mounting and Grounding will only be charged when performed outside of the normal throughput cycle.
This includes but is not limited to digging out empty containers by container number, for sale
containers, off hire containers, containers moving to/from repair, unusual requests requiring
restacking of full containers, etc. Each container that is required to be handled within stack to
carry out request will be charged a mount and/or ground fee. Also, this would apply if there is an
overall change by Horizon Lines in the mode of operation. This rate will include drayage of
container within the terminal. In regards to For Sale and Off Hire containers, if a trucker
requests a specific container number, then Contractor will charge a mounting/grounding charge per
move shifted/handled, excluding the move for the container delivered.
	 
	 	 	In addition, in the event that the Carrier changes its mode of operation or makes a special request
to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to
order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates (Items 13 and
12 below).
	 
	 	 	Mounting/Grounding charges do not apply to the switch out of insulated containers occurring two
times per year however drayage charges do apply.
	 
	9.	 	Miscellaneous Parts for Roadability — Carrier to handle directly with M and R vendor. This
is not applicable to Maersk owned chassis.

	 	 	 	 	 
	10.

	 	Lashing/Unlashing of breakbulk cargo on board vessel
	 	Extra labor man hour rates plus

materials at cost plus * percent

	 	 	 
	11.

	 	Maintenance – Carrier to handle directly with M and R vendor.

	 	 	 	 	 
	12.

	 	Equipment Rental Rates (when ordered by Carrier; excludes operator)
	 
	 

	 	- Top Loader
	 	$ *  per hour
	 

	 	- Yard Hustler
	 	$ *  per hour
	 

	 	- Empty Handler
	 	$ *  per hour
	 

	 	- Transtainer
	 	$ *  per hour
	 

	 	- Bombcart
	 	$ *  per hour
	 

	 	- Container Crane
	 	$ *  per hour

	 	 	 	 	 	 	 	 	 
	13.	 	Extra Labor Rates per man hour subject to minimum guarantees
	 
	 

	 	Weekday, 1st Shift
	 	$ * 
	 	Weekend, 1st Shift
	 	$ * 
	 

	 	Weekday, 2nd Shift
	 	$ * 
	 	Weekend, 2nd Shift
	 	$ * 
	 

	 	Weekday, 3rd Shift
	 	$ * 
	 	Weekend, 3rd Shift
	 	$ * 
	 
	 	 	 	 	 	 	 	 
	14.	 	Line Handling – Carrier to make payment directly to vendor.

			
	 	 	 
	 
	 	Horizon Lines Initials      TC          
	 	 	 
	Second Revised Appendix II
	 	APMT Initials      MO          

 

28

 

	15.	 	Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * gate moves or allowed mounting/grounding and will be
billed
$ * per container for receipt/delivery (Excludes demurrage).

	 	 	 	 	 
	16.

	 	Terminal storage charges	 	 
	 
	 

	 	— Storage of empty containers

	 	$ * per unit per day

Empty allowance will be determined by multiplying the Carrier’s container lift volume each
month times * times the number of days in the month. Excess empty container days over
such allowed free days will be charged monthly at the following rate per container per day.
(Free days = Lifts x * x Days in Period)

In any event when terminal notifies carrier of excess empties on terminal, carrier will
provide
an evacuation plan to reduce empties to an acceptable level within the following 14 days.

Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree
when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds the
storage cap, Carrier will be required to present the respective terminal with an empty evacuation
plan to reduce the number of empties below the cap within a fourteen (14) day period. Daily
storage cap is equal to * empty containers.

Empties at off dock will not be included in storage days. Empties at off dock will be charged the
lease rate plus the storm sewer rate plus the lease hold tax for the portion of property utilized.
Utilization is determined by dividing the number of containers actually stored on facility by *.

(i.e. If there were * containers on facility that would equal billing of *. Subject to
continued port agreement).

	17.	 	Demurrage – Terminal Operator will bill, collect, and retain demurrage from carrier per
terminal tariff in effect on                       October 15, 2006. Below is table of rates from terminal tariff.

	 	 	 	 	 	 	 	 	 
	 	 	Charge per Day for the	 	 	Charge per Day for Each	 
	 	 	1st Five Days or	 	 	Additional Day Over	 
	 	 	Fraction Thereof	 	 	Five Days or Fraction Thereof	 
	Inbound
	 	 	 	 	 	 	 	 
	Up to 20 ft
	 	$	 	*	 	$	 	*
	Over 20 ft to 40 ft
	 	$	 	*	 	$	 	*
	Over 40 ft
	 	$	 	*	 	$	 	*
	 
	 	 	 	 	 	 	 	 
	Outbound
	 	 	 	 	 	 	 	 
	20 ft
	 	$	 	*	 	$	 	*
	Over 20 ft to 40 ft
	 	$	 	*	 	$	 	*
	Over 40 ft
	 	$	 	*	 	$	 	*

			
	 	 	 
	 
	 	Horizon Lines Initials      TC          
	 	 	 
	Second Revised Appendix II
	 	APMT Initials      MO          

 

29

 

Free time for import and export cargo is * business days for dry containers and * business
days for temperature controlled containers.

The only free time exceptions are that the Contractor shall grant Carrier * business days free
time for autoracks, pallet loads, and dunnage provided that Carrier provides a list of these
containers to Contractor 48 hours prior to vessel’s arrival.

	 	 	 	 	 
	18.

	 	Customs Vacis/Security/USDA Exams/Other government exams
	 	Per Terminal Tariff
	 
	 	 	 	 
	 

	 	Other drays within terminal premises not associated
with throughput cycle.
	 	$ * one way
	 
	 	 	 	 
	 

	 	Dray charge to empty annex lot for seasonal equipment change
	 	$ * per container
	 
	 	 	 	 
	19.

	 	Bundling of Chassis/Flat Racks, Weekday, 1st Shift
	 	$ * per chassis/flat bundled plus materials

	20.	 	Out of service equipment (containers and chassis) remaining on terminal in excess of *
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container per day.

If container is able to be stacked in a normal manner and fits in one container slot then storage
(Item 16) only applies.

	21.	 	Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Items 13 and 12 above).

	 	 	 	 	 
	22.

	 	Fuel Surcharge as of January 2010
	 	$ * per lift

Fuel Surcharge is based on the Bureau of Labor Statistics Producer Price Index No 2 Diesel Fuel
with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year if
fuel prices fall below the February 2005 level and eliminated if prices fall below the February
2004 level.

	 	 	 	 	 	 	 
	23.

	 	Chassis Switching charge
	 	Weekday, 1st Shift
	 	$ * per move
	 

	 	 	 	Weekday, 2nd Shift
	 	$ * per move
	 

	 	 	 	Weekday, 3rd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 1st/2nd Shift
	 	$ * per move
	 

	 	 	 	Weekend, 3rd Shift
	 	$ * per move

			
	 	 	 
	 
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	 	APMT Initials      MO          

 

30

 

To/From truckers equipment From/To chassis

Switching of reefer containers from underslung genset chassis

	 	 	 
	**	 	Subject to minimum labor guarantees

	24.	 	Reefer Fuel will be charged based on the following formula:
	 
	 	 	The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer fuel for
the month at fuel vendor’s charge to Contractor plus *.

Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days advance
notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based on the
average weekly cost as published by government at the following web site (or similar web site if
this site no longer exists)
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

	 	 	 	 	 
	25.

	 	Security Guard man hour rates when requested by Horizon
	 	$ * per man hour

	26.	 	A copy of the Interim Local Agreement for CY Empty Storage is attached hereto and made a part
of the Second Revised Appendix II relating to Tacoma.

			
	 	 	 
	 
	 	Horizon Lines Initials      TC          
	 	 	 
	Second Revised Appendix II
	 	APMT Initials      MO          

 

31

 

Interim Local Agreement for CY Empty Storage

Background

In the current economic environment, APM Terminal s strives to find efficiencies and cost savings
opportunities for our customers. Recently, the Port of Tacoma has notified APM Terminals that they
will be ending the month to month leasing opportunity of the 10 Acre Dirt Annex. APM Terminals
would like to offer CY storage in place of the dirt lot annex to Horizon Lines. This opportunity
will allow Horizon Lines to save on ancillary charges associated with the movement of equipment to
and from the Dirt Lot Annex. Collectively, we can use the current conditions to provide better
service and a lower cost base with the intent that both companies benefit.

Both parties understand that this is an interim agreement that could be cancelled at any time by
APM Terminals due to changes in customer base, available CY acreage, or other requirements. If the
Interim agreement is cancelled, charges and fees would revert to the Terminal Service Agreement.

There is a chance that APMT would not be able to regain access to the “dirt lot”, or there could be
a long notice period to regain such access. This could cause Horizon Lines to relocate excess
empties to an off dock facility if/when APMT were to cancel this Interim Local Agreement. APT
Terminals would give Horizon Lines a minimum of 45 days notice before cancelling the agreement.

This interim agreement will go into effect March 1, 2009.

Scope

	 	1.	 	APMT will no longer move Horizon Lines equipment to the dirt lot, but rather, the
equipment would be stored in the APM Terminals CY.
	 
	 	2.	 	The daily CY storage empty cap will be * empties. A flat rate will be charged for
the storage of empties at $ * per month when at or below * empties.
	 
	 	3.	 	APM Terminals will notify Horizon Lines when the storage of empty containers exceeds
the cap of * empties. Horizon Lines will be required to present APM Terminals with an
empty evacuation plan to reduce to number of empties below the cap within a fourteen (14)
day period from the time of notification. The movement of empties (inside the terminal)
associated with reducing the CY storage count will be charged as the mounting and grounding
rate under section 8 of the Terminal Services Agreement. Other related charges would be for
Horizon Lines account.

	 	 	 	 	 	 	 
	Horizon Lines

	 	 	 	APM Terminals Pacific Ltd.
	 	 
	 	 	 	 	 	 	 
	/s/ Chris Novosad

	 	 	 	/s/ Jonathan R. Goldmer	 	 
	 

	 	 	 	 	 	 
	Signature

	 	 	 	Signature	 	 
	 	 	 	 	 	 	 
	Chris Novosad

	 	 	 	Jonathan R. Goldmer	 	 
	 

	 	 	 	 	 	 
	Name

	 	 	 	Name	 	 
	 	 	 	 	 	 	 
	9/23/09

	 	 	 	9/23/09	 	 
	 

	 	 	 	 	 	 
	Date

	 	 	 	Date	 	 

			
	 	 	 
	 
	 	Horizon Lines Initials      TC          
	 	 	 
	Second Revised Appendix II
	 	APMT Initials      MO          

 

32

 

Horizon Lines

Terminal Services Rates at

APM Terminals — Tacoma, WA

Baseline Rates Schedule effective January 1, 2011 Rates to be adjusted Labor/CPI increases

as per Contract Appendix V and VI

The rates in this Appendix effective on January 1, 2011 shall be the numbers listed below, provided
however that such numbers are only baseline numbers and each shall be increased by the amount of
the increases as described in Sections 6(b), 12(a), 12(b) and 12(c) of the Terminal Agreement dated
as of May 9, 2004 (the “Original Agreement”) during the time period prior to January 1, 2011 and
Sections 12(a), 12(b) and 12(c) as revised in Amendment 2 dated November 30, 2006.

For example, if the rate item no. 1A for Tacoma in the Original Agreement CPI/Labor increases on
July 1, 2010 by *, then the $ * baseline rate listed below shall be increased to $ *. The
subsequent increases in the Original Agreement would also be applied to this rate through December
31, 2010. All rates in the below schedule would be adjusted in a similar manner based on their
percentage increase in the Original Agreement.

	 	 	 	 	 	 	 
	1.

	 	A.     Discharge or Load — Base Rate — per marine lift
	 	$        *	 	 
	 
	 	 	 	 	 	 
	 

	 	B.     Transshipment per move
	 	$        *	 	 
	 

	 	C.     Shifting Cell to Cell within the same hatch
	 	$        *	 	 
	 

	 	D.     Restowing container Cell to Dock to Cell
	 	$        *	 	 
	 

	 	E.     Overheight unit lifted with overheight spreader (no wires)
	 	$        *
	 	per lift

Rate includes first and second shifts seven days a week (excluding holidays) stevedoring
staff/gangs, normal container lashing/unlashing on vessel (excluding detentions), crane rental,
tractors during vessel operations, assisting in receiving and delivery, wharfage, dockage, clerking
and checking during vessel operations, weighing of export containers, cargo plan preparation,
roadability check (labor only), visual seal inspection at gate and load/empty cycle to/from vessel
including tir preparation.

Current standard operational procedure is for imports/exports to be wheeled. Also, APMT agrees to
have * Horizon Lines Owned empties wheeled on a daily basis, which includes * empties in
good order, * wheeled empties for M & R and, if available, * Maersk empties provided
containers required by Horizon customers and no additional mounting team is required, with a
maximum daily allowance of * empties on terminal. A communication plan from Horizon Lines will
be agreed to by APMT and direct the daily execution of such agreement. At which time increase in
volume at the facility restricts space for a wheeled operation, imports/exports will be grounded
and/or wheeled empties will be restricted. At least 90 days prior to any change of handling
wheeled containers APMT will discuss options with Horizon Lines and mutually agree on a workable
solution and associated costs.

Horizon Lines Initials _TC___

			
	 	 	 
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	 	APMT Initials _MO___

 

33

 

Receiving and delivery gates will be in operation from 0800 to 1200 and from 1300 to 1700* on
straight time workdays. If the terminal operator chooses to open during the lunch period or to
open from 0700 to 0800 hours weekdays, there will be no extra charge to the carrier.

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month total
gate moves that exceed the allowed number of gate moves, will be invoiced to the carrier as per
Item 7 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading to
a vessel or barge. Each container will be invoiced two transshipment moves.

	 	 	 
	*	 	Specifically,

Drivers receiving/delivering empties must be processed by * hours.

Drivers receiving /delivering live reefers must be processed by * hours.

Drivers receiving import loads must be processed by * hours.

Drivers delivering wheeled export loads (except live reefers) must be processed by *.

Second shift gates Wednesday and Fridays:

Drivers receiving/delivering empties must be processed by * hours.

Lifting Bundles of Flat Racks/Chassis -

	 	M.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge

	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates

	 	N.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge
	 
	 	ii.	 	Contract charge for bundling/unbundling
	 
	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates
	 
	 	ii.	 	Contract charge for bundling / unbundling

	 	O.	 	If the contractor locks (or unlocks) and secures empty flatracks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat loaded/discharged provided that the contractor follows the stow
plan provided by the carrier with relation to the stowage of flatracks.

(i.e. If 4 flats are locked together shoreside and lifted as one unit to the vessel,
the lift charge to the carrier will be 4 x base lift rate)

	 	 	 	 	 	 	 
	2.

	 	A.
	 	Reefer Differential assessed to each loaded reefer for plug/unplug
services, quality check at time of discharge /loading,
record keeping, administrative services. This rate does not include pre-tripping, labor to fuel
genset, cleaning, reefer wash, M&R, genset mount/dismount and fuel. Rate to be charged also for
reefers received/delivered with no vessel activity.	 	$     * per loaded reefer

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	 	APMT Initials _MO___

 

34

 

	 	 	 	 	 	 	 
	 

	 	B.
	 	Daily Reefer monitoring and electric charges per calendar day or
	 	$   * Daily charge
	 

	 	 	 	portion thereof (minimum one day charge)
	 	 
	 
	 	 	 	 	 	 
	 	 	First Calendar Day to receive a * discount from stated rate.	 	 

	3.	 	Maintenance and Repair (M and R) Man Hour Rates

	 	 	 	 	 	 	 	 	 
	 

	 	1st Shift Straight Time
	 	$        *
	 	1st Shift Overtime
	 	$        *
	 

	 	2nd Shift Straight Time
	 	$        *
	 	2nd Shift Overtime
	 	$        *
	 

	 	3rd Shift Straight Time
	 	$        *
	 	3rd Shift Overtime
	 	$        *
	 
	 	 	 	 	 	 	 	 
	 	 	Installing or Removing Gensets	 	- 30 minutes at the applicable M and R man hour rate plus $ *
	 	 	Fueling Gensets	 	- 12 minutes at the applicable M and R man hour rate
	 	 	Stringing of Gensets	 	- 15 minutes at the applicable M and R man hour rate

	4.	 	A. Standby/Guarantee per Gang per hour

	 	 	 
	                  Weekday, 1st Shift Straight Time
	 	$        *

In addition, overtime differentials (Item 5) will apply based on period.

	 	B.	 	Extra Labor/Heavy Lifts per Gang per hour

	 	 	 
	                  Weekday, 1st Shift Straight Time
	 	$        *

In addition, overtime differentials (Item 5) will apply based on period.

	 	C.	 	Detentions per Gang per Hour
(See Appendix 1 “Detentions” for list of billable and non-billable detentions)

			
	                  Weekday, 1st Shift Straight Time
	 	$        *

In addition, overtime differentials (Item 5) will apply based on period.

	5.	 	Overtime Differentials per gang per hour

									
	 

	 	Weekday, 2nd Shift
	 	$        *
	 	Weekend, 3rd Shift
	 	$        *
	 

	 	Weekday, 3rd Shift
	 	$        *
	 	Holiday, 1st/2nd Shift Weekday
	 	$        *
	 

	 	Weekend, 1st Shift
	 	$        *
	 	Holiday, 3rd Shift Weekday
	 	$        *
	 

	 	Weekend, 2nd Shift
	 	$        *	 	 	 	 

	6.	 	Overtime Gate Charges — Extra labor plus equipment per Items 13 and 12 below prorated between
carriers based on percentage of moves utilizing gate outside standard terminal gate hours.
Current standard gate hours are 0800 to 1700 Monday through Friday on straight time workdays.
If the terminal operator chooses to open during the lunch period or operate flex gates there
will be no extra charge to the carrier. Overtime gate charges also apply to ILWU holidays. Holiday gates
which are included in the base lift rate are stated on attached schedule.

Horizon Lines Initials _TC___

			
	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

35

 

	 	 	A flat rate will apply for second shift gate on Tuesday or Thursday of $ * per shift, and a
flat rate on Wednesday or Friday of $ * per shift. If Horizon Lines wishes to remain open from
1700 -1800 any night this cost will be absorbed by Horizon Lines.
	 
	 	 	A flat rate of $ * will be charged for 1st /2nd shift gate on Saturdays.
This was increased in August 2008.

	 	 	 	 	 
	7.

	 	Extra Gate Moves (exceeding the * gate moves included per
	 	$        * per move
	 

	 	vessel lift). Billing to be done on a calendar month basis.	 	 

	 	 	 	 	 	 	 
	8.

	 	Mounting/Grounding
	 	Weekday, 1st Shift
	 	$        * per move
	 

	 	 	 	Weekday, 2nd Shift
	 	$        * per move
	 

	 	 	 	Weekday, 3rd Shift
	 	$        * per move
	 

	 	 	 	Weekend, 1st/2nd Shift
	 	$        * per move
	 

	 	 	 	Weekend, 3rd Shift
	 	$        * per move
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	** 	 	Subject to minimum labor guarantees

	 	 	Mounting and Grounding will only be charged when performed outside of the normal throughput cycle.
This includes but is not limited to digging out empty containers by container number, for sale
containers, off hire containers, containers moving to/from repair, unusual requests requiring
restacking of full containers, etc. Each container that is required to be handled within stack to
carry out request will be charged a mount and/or ground fee. Also, this would apply if there is an
overall change by Horizon Lines in the mode of operation. This rate will include drayage of
container within the terminal. In regards to For Sale and Off Hire containers, if a trucker
requests a specific container number, then Contractor will charge a mounting/grounding charge per
move shifted/handled, excluding the move for the container delivered.
	 
	 	 	In addition, in the event that the Carrier changes its mode of operation or makes a special request
to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to
order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates (Items 13 and
12 below).
	 
	 	 	Mounting/Grounding charges do not apply to the switch out of insulated containers occurring two
times per year however drayage charges do apply.
	 
	9.	 	Miscellaneous Parts for Roadability — Carrier to handle directly with M and R vendor. This
is not applicable to Maersk owned chassis.

	 	 	 	 	 
	10.

	 	Lashing/Unlashing of breakbulk cargo on board vessel
	 	Extra labor man hour rates plus

materials at cost plus * percent

	11.	 	Maintenance — Carrier to handle directly with M and R vendor.

Horizon Lines Initials _TC___

			
	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

36

 

	12.	 	Equipment Rental Rates (when ordered by Carrier; excludes operator)

	 	 	 
	- Top Loader

	 	$ * per hour
	- Yard Hustler

	 	$ * per hour
	- Empty Handler

	 	$ * per hour
	- Transtainer

	 	$ * per hour
	- Bombcart

	 	$ * per hour
	- Container Crane

	 	$ * per hour

	13.	 	Extra Labor Rates per man hour subject to minimum guarantees

	 	 	 	 	 	 	 
	Weekday, 1st Shift

	 	$ *
	 	Weekend, 1st Shift
	 	$ *
	Weekday, 2nd Shift

	 	$ *
	 	Weekend, 2nd Shift
	 	$ *
	Weekday, 3rd Shift

	 	$ *
	 	Weekend, 3rd Shift
	 	$ *

	14.	 	Line Handling — Carrier to make payment directly to vendor.

	15.	 	Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * gate moves or allowed mounting/grounding and will be
billed
$ * per container for receipt/delivery (Excludes demurrage).

	16.	 	Terminal storage charges

	 	 	 
	— Storage of empty containers

	 	$ * per unit per day

Empty allowance will be determined by multiplying the Carrier’s container lift volume each
month times * times the number of days in the month. Excess empty container days over
such allowed free days will be charged monthly at the following rate per container per day.
(Free days = Lifts x * x Days in Period)

In any event when terminal notifies carrier of excess empties on terminal, carrier will
provide
an evacuation plan to reduce empties to an acceptable level within the following 14 days.

Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties agree
when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds the
storage cap, Carrier will be required to present the respective terminal with an empty evacuation
plan to reduce the number of empties below the cap within a fourteen (14) day period. Daily
storage cap is equal to * empty containers.

Empties at off dock will not be included in storage days. Empties at off dock will be charged the
lease rate plus the storm sewer rate plus the lease hold tax for the portion of property utilized.
Utilization is determined by dividing the number of containers actually stored on facility by *.

(i.e. If there were * containers on facility that would equal billing of *. Subject to
continued port agreement).

	17.   Demurrage —	 	 Terminal Operator will bill, collect, and retain demurrage from carrier per
terminal tariff in effect on October 15, 2006. Below is table of rates from terminal tariff.

			
	 	 	 
	 
	 	Horizon Lines Initials __TC_____

	 	 	 
	Second Revised Appendix II
	 	APMT Initials __MO_____

 

37

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Charge per Day for the
	 	 	1st Five Days or	 	Charge per Day for Each Additional Day Over
		 	Fraction Thereof	 	Five Days or Fraction Thereof
	Inbound	 	 	 	 	 	 
	Up to 20 ft	 	$	*	 	$	*
	Over 20 ft to 40 ft
	 	$	*	 	$	*
	Over 40 ft
	 	$	*	 	$	*
	 	 	 	 	 
	Outbound	 	 	 	 	 	 
	20 ft
	 	$	*	 	$	*
	Over 20 ft to 40 ft
	 	$	*	 	$	*
	Over 40 ft	 	$	*	 	$	*

Free time for import and export cargo is * business days for dry containers and * business
days for temperature controlled containers.

The only free time exceptions are that the Contractor shall grant Carrier * business days free
time for autoracks, pallet loads, and dunnage provided that Carrier provides a list of these
containers to Contractor 48 hours prior to vessel’s arrival.

	 	 	 	 	 
	18.

	 	Customs Vacis/Security/USDA Exams/Other government exams
	 	Per Terminal Tariff
	 
	 	 	 	 
	 

	 	Other drays within terminal premises not associated
with throughput cycle.
	 	$ * one way
	 
	 	 	 	 
	 

	 	Dray charge to empty annex lot for seasonal equipment change
	 	$ * per container
	 
	 	 	 	 
	19.

	 	Bundling of Chassis/Flat Racks, Weekday, 1st Shift
	 	$ * per chassis/flat

      bundled plus materials

	20.	 	Out of service equipment (containers and chassis) remaining on terminal in excess of 30
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container per day.

If container is able to be stacked in a normal manner and fits in one container slot then storage
(Item 16) only applies.

			
	 	 	 
	 
	 	Horizon Lines Initials __TC_____
	 	 	 
	Second Revised Appendix II
	 	APMT Initials __MO_____

 

38

 

	 	 	 	 	 
	21.  Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Items 13 and 12 above).

	 
	 	 	 	 
	22.  Fuel Surcharge as of January 2010
	 	$ * per lift
	 
	 	 	 	 
	Fuel Surcharge is based on the Bureau of Labor Statistics Producer Price Index No 2 Diesel Fuel
with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year if
fuel prices fall below the February 2005 level and eliminated if prices fall below the February
2004 level.

	 	 	 	 	 
	23.  Chassis Switching charge

	 	Weekday, 1st Shift
	 	$ * per move
	 

	 	Weekday, 2nd Shift
	 	$ * per move
	 

	 	Weekday, 3rd Shift
	 	$ * per move
	 

	 	Weekend, 1st/2nd Shift
	 	$ * per move
	 

	 	Weekend, 3rd Shift
	 	$ * per move

	 	 	 	 	 
	To/From truckers equipment From/To chassis
	 	 	 	 
	Switching of reefer containers from underslung genset chassis
	 	 	 	 

	 	 	 
	**	 	Subject to minimum labor guarantees

	 	 	 	 	 
	24.  Reefer Fuel will be charged based on the following formula:
	 	 	 	 
	 
	 	 	 	 
	The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer
fuel for the month at fuel vendor’s charge to Contractor plus *.

	 
	 	 	 	 
	Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days advance
notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based on the
average weekly cost as published by government at the following web site (or similar web site if
this site no longer exists) http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

	 
	 	 	 	 
	25.  Security Guard man hour rates when requested by Horizon hour
	 	$ * per man
	 
	 	 	 	 
	26.  A copy of the Interim Local Agreement for CY Empty Storage is attached hereto and made a part
of the Second Revised Appendix II relating to Tacoma

Horizon Lines Initials _TC___

			
	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

39

 

Interim Local Agreement for CY Empty Storage

Background

In the current economic environment, APM Terminal s strives to find efficiencies and cost savings
opportunities for our customers. Recently, the Port of Tacoma has notified APM Terminals that they
will be ending the month to month leasing opportunity of the 10 Acre Dirt Annex. APM Terminals
would like to offer CY storage in place of the dirt lot annex to Horizon Lines. This opportunity
will allow Horizon Lines to save on ancillary charges associated with the movement of equipment to
and from the Dirt Lot Annex. Collectively, we can use the current conditions to provide better
service and a lower cost base with the intent that both companies benefit.

Both parties understand that this is an interim agreement that could be cancelled at any time by
APM Terminals due to changes in customer base, available CY acreage, or other requirements. If the
Interim agreement is cancelled, charges and fees would revert to the Terminal Service Agreement.

There is a chance that APMT would not be able to regain access to the “dirt lot”, or there could be
a long notice period to regain such access. This could cause Horizon Lines to relocate excess
empties to an off dock facility if/when APMT were to cancel this Interim Local Agreement. APT
Terminals would give Horizon Lines a minimum of 45 days notice before cancelling the agreement.

This interim agreement will go into effect March 1, 2009.

Scope

	 	1.	 	APMT will no longer move Horizon Lines equipment to the dirt lot, but rather, the
equipment would be stored in the APM Terminals CY.

	 	2.	 	The daily CY storage empty cap will be * empties. A flat rate will be charged for
the storage of empties at $ * per month when at or below * empties.

	 	3.	 	APM Terminals will notify Horizon Lines when the storage of empty containers exceeds
the cap of * empties. Horizon Lines will be required to present APM Terminals with an
empty evacuation plan to reduce to number of empties below the cap within a fourteen (14)
day period from the time of notification. The movement of empties (inside the terminal)
associated with reducing the CY storage count will be charged as the mounting and grounding
rate under section 8 of the Terminal Services Agreement. Other related charges would be for
Horizon Lines account.

	 	 	 	 	 
	Horizon Lines

	 	APM Terminals Pacific Ltd.	 	 
	 	 	 	 	 
	/s/ Chris Novosad
 

Signature

	 	/s/ Jonathan R. Goldmer
 

Signature
	 	 
	 	 	 	 	 
	Chris Novosad
 

Name

	 	Jonathan R. Goldmer
 

Name
	 	 
	 	 	 	 	 
	9/23/09
 

Date

	 	9/23/09
 

Date
	 	 

Horizon Lines Initials _TC___

			
	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

40

 

Horizon Lines

Terminal Services Rates at

APM Terminals — Houston, TX

Rates Effective January 1, 2010 to September 30, 2010

	 	 	 
	1.      A.   Discharge or Load — Base Rate — per marine lift
	 	$     *
	 
	 	 
	B.   Transshipment per move
	 	$     *
	 
	 	 
	C.   Shifting Cell to Cell within the same hatch
	 	$     *
	 
	 	 
	D.   Restowing container Cell to Dock to Cell
	 	$     *
	 
	 	 
	E.   Overheight unit lifted with overheight spreader (no wires)
	 	$     *     per lift

Rate includes straight-time stevedoring staff/gangs, normal container lashing/unlashing on vessel
(excluding detentions), crane rental, tractors during vessel operations, assisting in receiving
and delivery, dockage, clerking and checking during vessel operations, weighing of export
containers, wharfage, cargo plan preparation, roadability check (labor only), visual seal
inspection, and load/empty cycle to/from vessel including tir preparation. Standard operational
procedure is a grounded operation with the exception of reefers, special hazardous and loaded
tank containers.

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month
total gate moves that exceed the allowed number of gate moves will be invoiced to the carrier as
per Item number 6 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading
to a vessel or barge. Each container will be invoiced two transshipment moves.

Lifting Bundles of Flat Racks/Chassis —

	 	A.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge

	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates plus mounting or grounding charge

Horizon Lines Initials _TC___

			
	 	 	 
	Second Revised Appendix II
	 	APMT Initials _MO___

 

41

 

	 	B.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge
	 
	 	ii.	 	Contract charge for bundling/unbundling
	 
	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates
	 
	 	ii.	 	Contract charge for bundling / unbundling
	 
	 	iii.	 	Mounting or grounding charge for each chassis or flat

	 	C.	 	If the contractor locks (or unlocks) and secures empty flat racks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat loaded/discharged provided that the contractor follows the stow
plan provided by the carrier with relation to the stowage of flatracks.

(i.e. If 4 flat racks are locked together shoreside and lifted as one unit to the
vessel, the lift charge to the carrier will be 4 x base lift rate)

	 	 	 
	2.  A.  Reefer Differential assessed to each loaded reefer for plug/unplug services,
quality check at time of discharge /loading, record keeping, administrative services. This rate does not include
pre-tripping, labor to fuel genset, cleaning, reefer wash, M&R, genset
mount/dismount and fuel. Rate to be charged also for reefers
received/delivered with no vessel activity.
	 	 
	 	 
	 	$     * per loaded reefer 
	 
	 	 
	B. Daily Reefer monitoring and electric charges per calendar day or
	 	$     * Daily charge
	portion thereof (minimum one day charge)
	 	 
	 
	 	 
	First Calendar Day to receive a * discount from stated rate
	 	 

	 	 	 
	3.  See Item 9 for Maintenance and Repair (M and R) Man Hour Rates.
	 
	 	 
	Installing or Removing Gensets
	 	— 30 minutes at the applicable M and R man hour rate plus $     *
	Fueling Gensets
	 	— 12 minutes at the applicable M and R man hour rate
	Reefer Data Download
	 	— $     *     per reefer
	Stringing Gensets
	 	— 15 minutes at the applicable M and R man hour rate

4.    A.  Standby / Guarantee per Gang per hour Straight Time

	 	 	 	 	 
	 

	 	One Gang Barge
	 	$     *
	 

	 	One Gang Vessel
	 	$     *
	 

	 	Two Gang Vessel
	 	$     *
	 

	 	Three Gang Vessel **
	 	$     *

B.  Extra Labor/Heavy Lifts per Gang per hour Straight Time

	 	 	 	 	 
	 

	 	One Gang Barge
	 	$     *
	 

	 	One Gang Vessel
	 	$     *
	 

	 	Two Gang Vessel
	 	$     *
	 

	 	Three Gang Vessel **
	 	$     *

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C. Detentions per Gang per Hour Straight Time

(See Appendix 1 “Detentions” for list of billable and non-billable detentions)

	 	 	 	 	 
	 

	 	One Gang Barge
	 	$     *
	 

	 	One Gang Vessel
	 	$     *
	 

	 	Two Gang Vessel
	 	$     *
	 

	 	Three Gang Vessel **
	 	$     *

	 	 	 
	**	 	for 4A, 4B, and 4C the three gang rate will be effective from the first vessel after
Amendment No. 3 signed. In addition if gangs are hire for less than 8 hours Horizon Lines will
cover labor with 8 hour guarantees.

	 	 	 	 	 
	5.   Overtime Differentials per gang per hour
	 	 	 	 
	A.   Overtime
	 	One Gang Barge	 	$     *
	 
	 	One Gang Vessel	 	$     *
	 
	 	Two Gangs Vessel	 	$     *
	 
	 	Three Gang Vessel **	 	$     *
	 
	 	 	 	 
	B.   Double Time
	 	One Gang Barge	 	$     *
	 
	 	One Gang Vessel	 	$     *
	 
	 	Two Gangs Vessel	 	$     *
	 
	 	Three Gang Vessel **	 	$     *

	 	 	 
	**	 	for 5A and 5B the three gang rate will be effective from the first vessel after Amendment
No. 3 signed. In addition if gangs are hire for less than 8 hours Horizon Lines will cover labor
with 8 hour guarantees

	 	 	 	 	 
	6.      Extra
Gate Moves (exceeding the * gate moves included per
vessel lift). Billing to be done on a calendar month basis.
	 	$ *   per move	 	 
	 
	 	 	 	 
	7.      Mounting/Grounding — activity not included in base rate
	 	Straight Time $	 	*
	 
	 	Overtime        $	 	*

	 	 	 
	**	 	Subject to minimum labor guarantees

Mounting and Grounding will only be charged when performed outside of the normal throughput
cycle. This includes but is not limited to digging out empty containers by container number, for
sale containers, off hire containers, containers moving to/from repair, unusual requests
requiring restacking of full containers, etc. Each container that is required to be handled
within stack to carry out request will be charged a mount and/or ground fee. Also, this would
apply if there is an overall change by Horizon Lines in the mode of operation. This rate will
include drayage of container within the terminal. In regards to For Sale and Off Hire
containers, if a trucker requests a specific container number, then Contractor will charge a
mounting /grounding charge per move shifted/handled, excluding the move for the container
delivered.

In addition, in the event that the Carrier changes its mode of operation or makes a special
request to the Contractor not covered by this Agreement, in either case, Contractor reserves the
right to order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates
(Items 13 and 11 below).

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	8.     Miscellaneous Parts for Roadability — cost plus *. This is not applicable to Maersk
owned chassis.
	 
	 	 	 	 	 	 
	9.     Maintenance — Day Shift
	 	ST $ *	 	OT $ *	 	DT $ *

	 	 	 
	10.   Drayage
	 	 
	To or From on Terminal Rail
	 	$     *     one way
	USDA Dray
	 	$     *     one way
	US Customs or others dray within terminal
	 	$     *     one way
	Customs Vacis/Security exams
	 	Per Terminal Tariff

	 	 	 
	11.   Equipment Rental Rates (when ordered by Carrier; excludes operator)

	 
	- Top Loader
	 	$     *     per hour
	- Yard Hustler
	 	$     *     per hour
	- Empty Handler
	 	$     *     per hour
	- Transtainer
	 	$     *     per hour
	- Bombcart
	 	$     *     per hour
	- Container Crane
	 	$     *     per hour

	12.	 	Overtime Gate Charges — Extra labor plus equipment per Items 13 and 11 prorated between
carriers based on percentage of moves utilizing gate outside standard terminal gate hours.
Current standard gate hours are 0700 to 1800 Monday through Friday. Holiday gates which are
included in the base lift rate are stated on attached schedule.
	 
	 	 	UMS reserves the right to adjust standard gate hours but not without the mutual consent of
Horizon Lines, who can not unreasonably object to such a change without conclusive evidence that
UMS agrees support a negative financial impact to Horizon Lines. If the terminal operator
chooses to open during the lunch period or operate flex gates, there will be no extra charge to
the carrier. Overtime gate charges also apply to ILA holidays.

	 	 	 	 	 	 	 	 	 	 	 
	13.    Extra Labor Rates
	 	Straight Time $     *	 	Overtime $     *	 	Double Time $     *

	14.	 	Line Handling — Carrier to arrange directly with vendor.

	15.	 	Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * gate moves or allowed mounting/grounding and will be
billed $ * per container. (Excludes demurrage)

	16.	 	Terminal storage charges

	 	 	 
	               — Storage of empty containers
	 	$     *     per unit per day

Empty allowance will be determined by multiplying the Carrier’s container lift volume each month
times * times the number of days in the month. Excess empty container days over such
allowed free days will be charged monthly at the following rate per container per day.
(Free Days = Lifts x * x Days in Period)

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Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties
agree when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds
the storage cap, Carrier will be required to present the respective terminal with an empty
evacuation plan to reduce the number of empties blow the cap within a fourteen (14) day period.
Daily storage cap is equal to * empty containers.

	17.	 	Demurrage — Terminal Operator will bill, collect, and retain demurrage from carrier per
terminal tariff in effect on October 15, 2006. Below is table of rates from terminal tariff.

Free time for export cargo is * calendar days.

Free time for import cargo is * business days for dry containers and * business days for
temperature controlled containers.

Demurrage Rates (per 20’/40’ container per calendar day or part thereof)

Inbound/Outbound/Transshipments

	 	 	 
	I) One to Ten (1 — 10) Days (first period)
	 	 
	 
	 	 
	Dry General Purpose containers/Non-operating
	 	$     *
	Reefers
	 	 
	Operating Reefers
	 	$     *
	Flat Racks, Open Tops, and Special Equipment
	 	$     *
	Tank Containers
	 	$     *
	 
	 	 
	II) Eleventh Day and Above (second period)
	 	 
	 
	 	 
	Dry General Purpose containers/Non-operating
	 	$     *
	Reefers
	 	 
	Operating Reefers
	 	$     *
	Flat Racks, Open Tops, and Special Equipment
	 	$     *
	Tank Containers
	 	$     *

The only free time exception is that the Contractor shall grant Carrier * business days free
time for autoracks, pallet loads, and dunnage provided that Carrier provides a list of these
containers to Contractor 48 hours prior to vessel’s arrival. In addition rail export containers
will be allowed 14 calendar days freetime provided Horizon notifies APMT of the rail containers
prior to arrival at terminal. If requested Horizon will provide APMT with documentation showing
containers were railed.

	 	 	 
	18. Lashing/Unlashing of breakbulk cargo on board vessel
	 	Extra labor man hour rates plus
	 
	 	materials at cost plus   *   percent

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	19.    Bundling of Chassis/Flat Racks
	 	$     *     per chassis/flat plus materials

	20.	 	Out of service equipment (containers and chassis) remaining on terminal in excess of *
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container per day.

If container is able to be stacked in a normal manner and fits in one container slot then
storage (Item 16) only applies.

	21.	 	Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Items 13 and 11 above).

	 	 	 
	22.   Fuel Surcharge (as of January 2010)
	 	$     *     per lift
	Fuel Surcharge is based on the Bureau of Labor Statistics Producer Price Index No 2 Diesel Fuel
with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year
if fuel prices fall below the February 2005 level and eliminated if prices fall below the
February 2004 level.
	 	 

	 	 	 	 	 
	23.   Chassis Switching charge

	 	Straight Time

Overtime
	 	$     *

$     *

To/From truckers equipment From/To chassis

Switching of reefer containers from underslung genset chassis

Chassis switch/flips for hazardous containers on wheels is not billable

	 	 	 
	**	 	Subject to minimum labor guarantees

	24.	 	Reefer Fuel will be charged based on the following formula:

The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer fuel for
the month at fuel vendor’s charge to Contractor plus *.

In addition any reefers handled to/from on dock rail not associated with any vessel activity
will be invoiced based on actual fuel activity and not included in the formula.

Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days advance
notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based on
the average weekly cost as published by government at the following web site (or similar web
site if this site no longer exists) http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

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Horizon Lines

Terminal Services Rates at

APM Terminals — Elizabeth, NJ

Subject to Clause 9 of Amendment No. 3

Effective January 1, 2010 to September 30, 2010

	 	 	 	 	 
	1.   A.    Discharge or Load — Base Rate — per marine lift
	 	$	*	 
	 	 	 	 	 
	B.    Transshipment per move
	 	$	*	 
	C.    Shifting Cell to Cell within the same hatch
	 	$	*	 
	D.    Restowing container Cell to Dock to Cell
	 	$	*	 
	E.    Overheight unit lifted with overheight spreader (no wires)
	 	$	*	 per lift

Rate includes straight-time stevedoring staff/gangs, normal container lashing/unlashing on vessel
(excluding detentions), crane rental, tractors during vessel operations, assisting in receiving and
delivery, dockage, clerking and checking during vessel operations, weighing of export containers,
cargo plan preparation, roadability check (labor only), visual seal inspection, and load/empty
cycle to/from vessel including tir preparation. Rate also includes Terminal Throughput
Fee/Wharfage as stated in item no. 25 below. Standard operational procedure is a grounded operation
with the exception of reefer, loaded tank containers, and special hazardous.

Each vessel move (excluding shifts and heavy lifts) is allowed * gate moves. Each month total
gate moves that exceed the allowed number of gate moves, will be invoiced to the carrier as per
Item number 7 below. No credit will be given for unused gate moves.

The transshipment rate is based on a container discharging from a vessel or a barge and loading to
a vessel or barge. Each container will be invoiced two transshipment moves.

Lifting Bundles of Flat Racks/Chassis —

	 	A.	 	If received at gate bundled then we will charge

	 	a.	 	If can use standard spreader bar, charge will be one base lift rate for
load or discharge

	 	b.	 	If requires wires to load/discharge, then will be charged per Extra
labor hourly lifting rates plus mounting or grounding charge

	 	B.	 	If requested to be bundled/unbundled by Horizon Lines

	 	a.	 	If can use standard spreader bar, charge will be the following:

	 	i.	 	One base lift rate for load or discharge
	 
	 	ii.	 	Contract charge for bundling/unbundling
	 
	 	iii.	 	Mounting or grounding charge for the 2nd
to 5th chassis/flat

	 	b.	 	If requires wires than charges will be the following:

	 	i.	 	Per Extra labor hourly lifting rates
	 
	 	ii.	 	Contract charge for bundling / unbundling
	 
	 	iii.	 	Mounting or grounding charge for each chassis or flat

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	 	C.	 	If the contractor locks (or unlocks) and secures empty flat racks pierside and
lifts to/from vessel as one unit, the carrier will be charged the base lift rate for
each individual flat rack loaded/discharged provided that the contractor follows the
stow plan provided by the carrier with relation to the stowage of flatracks.

(i.e. If 4 flat racks are locked together shoreside and lifted as one unit to the
vessel, the lift charge to the carrier will be 4 x base lift rate)

	 	 	 	 	 
	2.   A.         Reefer Differential assessed to each loaded reefer for plug/unplug
services, quality check at time of discharge /loading,
record keeping, and administrative services. This rate does not include pre-tripping,
labor to fuel genset, cleaning, reefer wash, M&R, genset mount/dismount, and fuel. Rate to be
charged also for reefers received/delivered with no vessel activity.
	 	$ * per loaded reefer
	 
	 	 	 	 
	       B.        Daily Reefer monitoring and electric charges per calendar day or
portion thereof (minimum one day charge)
	 	$ * Daily charge      
	 
	 	 	 	 
	     First Calendar Day to receive a * discount from stated rate.
	 	 	 	 
	 
	 	 	 	 
	3.   Maintenance and Repair (M and R) Man Hour Rates
	 	 	 	 

	 	 	 	 	 
	Straight Time $ *

	 	Overtime $ *
	 	Double Time $ *

	 	 	 
	Installing or Removing Gensets

	 	- 30 minutes at the applicable M and R man hour rate plus $ *
	Fueling Gensets

	 	- 12 minutes at the applicable M and R man hour rate

	 	 	 	 	 	 	 
	4.  A.   Standby / Guarantee per Gang per hour Straight Time
	 	 	 	 	 	 
	 
	 	One Gang	 	$	*	 
	 
	 	Two Gangs	 	$	*	 
	 
	 	Three Gangs	 	$	*	 
	 
	 	 	 	 	 	 
	B.   Extra Labor / Heavy Lifts per Gang per hour Straight Time
	 	 	 	 	 	 
	 
	 	One Gang	 	$	*	 
	 
	 	Two Gangs	 	$	*	 
	 
	 	Three Gangs	 	$	*	 
	 
	 	 	 	 	 	 
	C.   Detentions per Gang per Hour Straight Time
	 	 	 	 	 	 
	 (See Appendix 1 “Detentions” for list of billable and non-billable detentions)
	 	 	 	 	 	 
	 
	 	One Gang	 	$	*	 
	 
	 	Two Gangs	 	$	*	 
	 
	 	Three Gangs	 	$	*	 
	 
	 	 	 	 	 	 
	5.   Overtime Differentials per gang per hour
	 	 	 	 	 	 
	 
	 A. Overtime
	 	One Gang	 	$	*	 
	 
	 	Two Gangs	 	$	*	 
	 
	 	Three Gangs	 	$	*	 
	 
	 	 	 	 	 	 
	 B. Double Time
	 	One Gang	 	$	*	 
	 
	 	Two Gangs	 	$	*	 
	 
	 	Three Gangs	 	$	*	 

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	6.   Overtime Gate Charges — Extra labor plus equipment per Items 14 and 12 below prorated
between carriers based on percentage of moves utilizing gate outside standard terminal gate
hours. Holiday gates which are included in the base lift rate are stated on attached
schedule.

	 
	 	 	 	 
	Flat charge of $ * per hour to be charged for gate on Friday past 1700. Current standard
gate hours are 0600 to 1700 Monday through Friday.

	 
	 	 	 	 
	UMS reserves the right to adjust standard gate hours but not without the mutual consent of
Horizon Lines, who can not unreasonably object to such a change without conclusive evidence that
UMS agrees support a negative financial impact to Horizon Lines. Horizon Lines agrees that UMS
can change the opening gate hour from 0600 to 0700 without their objection. If the terminal
operator chooses to open during the lunch period or operate flex gates, there will be no extra
charge to the carrier. Overtime gate charges also apply to ILA holidays.

	 
	 	 	 	 
	Flat charge of $ * per hour to be charged for receiving gate on Friday from 1700. If the
terminal causes gate to go past 1700, then no charge will be made from 1700 to 1800.

	 
	 	 	 	 
	7.  Extra Gate Moves (exceeding the * gate moves included per
vessel lift). Billing to be done on a calendar month basis.
	 	$ * per move
	 
	 	 	 	 
	8.  Mounting/Grounding —
	 	Straight Time $ *
	 
	 	        Overtime $ *

	 	 	 
	**	 	Subject to minimum labor guarantees

Mounting and Grounding will only be charged when performed outside of the normal throughput cycle.
This includes but is not limited to digging out empty containers by container number, for sale
containers, off hire containers, containers moving to/from repair, unusual requests requiring
restacking of full containers etc. Each container that is required to be handled within stack to
carry out request will be charged a mount and/or ground fee. Also, this would apply if there is an
overall change by Horizon Lines in the mode of operation. This rate will include drayage of
container within the terminal. In regards to For Sale and Off Hire containers, if a trucker
requests a specific container number, then Contractor will charge a mounting/grounding charge per
move shifted/handled, excluding the move for the container delivered.

In addition, in the event that the Carrier changes its mode of operation or makes a special request
to the Contractor not covered by this Agreement, in either case, Contractor reserves the right to
order a dedicated yard detail and charge Carrier at Extra labor plus equipment rates (Items 14 and
12 below).

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	9.    Miscellaneous Parts for Roadability — Carrier to handle directly with M and R vendor. This
is not applicable to Maersk owned chassis.
	 	 	 	 
	 
	 	 	 	 
	10.   Maintenance — Carrier to handle directly with M and R vendor.
	 	 	 	 
	 
	 	 	 	 
	11.   Rail Drayage to/from Express Port
	 	$ * one way
	   Port shuttle within Port Elizabeth/Port Newark
	 	$ * one way
	 
	 	 	 	 
	12.   Equipment Rental Rates (when ordered by Carrier; excludes operator)
	 	 	 	 

	 	 	 
	- Top Loader

	 	$ * per hour
	- Yard Hustler

	 	$ * per hour
	- Empty Handler

	 	$ * per hour
	- Transtainer

	 	$ * per hour
	- Bombcart

	 	$ * per hour
	- Container Crane

	 	$ * per hour

	 	 	 
	13.   Wharfage Non-Containerized Cargo
	 	According to Port Authority tariff (current fmc schedule
	 
	 	PA-10).  See also Item number 25.

	 	 	 	 	 	 	 
	14.   Extra Labor Rates
	 	Straight Time $ *	 	Overtime $ *	 	Double Time $ *

	 	 	 	 	 	 	 	 	 
	15.   Stuffing and Stripping Rates
	 	APMT no longer handles CFS Stuffing/Stripping for containers and POVs.	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Flat Rack cargo per 20’ flat	 	$	*	 
	 
	 	Flat Rack cargo per 40’ flat	 	$	*	 

	 	 	 	 	 
	CFS rates include drayage to/from on dock warehouse. Rate includes normal chocking and bracing
but does not include securing materials for flats or special securing of autos. Subject to on
terminal Contractor’s warehouse being available.

	 
	 	 	 	 
	16.   Line Handling per activity (i.e. two charges per call)
	 	 	 	 
	Straight Time
	 	$	*	 
	Overtime (except from 2300 to 0600)
	 	$	*	 
	Overtime (2300 to 0600)
	 	$	*	 
	 
	 	 	 	 
	17.   Full containers received over the road and redelivered without loading or discharging to or
from vessel are not included in the * gate moves or allowed mounting/grounding and will be
billed $ * per container for receipt and redelivery of a container. (Excludes
demurrage)

	 
	 	 	 	 
	18.   Terminal storage charges
	 	 	 	 

	 	 	 
	— Storage of empty containers

	 	$ * per unit per day

	 	 	 	 	 
	Empty allowance will be determined by multiplying the Carrier’s container lift volume each
month times * times the number of days in the month. Excess empty container days over
such allowed free days will be charged monthly at the following rate per container per day. (Free Days = Lifts x * x Days in Period)

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	Notwithstanding the means of calculating Carrier’s empty allowance stated above, the parties
agree when the Contractor notifies the Carrier that empty storage of equipment meets or exceeds
the storage cap, Carrier will be required to present the respective terminal with an empty
evacuation plan to reduce the number of empties below the cap within a fourteen (14) day period.
Daily storage cap is equal to * of the Carrier’s previous year’s annual throughput.

	 	 	 
	19.   Demurrage —
	 	Terminal Operator will bill, collect, and retain demurrage from carrier according
to the terminal tariff.
The only exception is that the Contractor shall grant Carrier   *   business days
free time for autoracks, pallet loads, and dunnage provided that Carrier provides
a list of these containers to Contractor 48 hours prior to vessel’s arrival.

	 	 	 
	20.   Lashing/Unlashing of break bulk cargo on board vessel
	 	Extra labor man hour rates plus
	 
	 	materials at cost plus * percent
	 
	 	 
	21.   Customs Vacis/Security exams
	 	Per Terminal Tariff
	 
	 	 
	Other drays within terminal premises not
	 	$ * one way
	associated with throughput cycle.
	 	 
	 
	 	 
	22.   Bundling of Chassis/Flat Racks
	 	$ * per chassis/flat plus materials

	 	 	 
	**	 	Subject to minimum labor guarantees

	 	 	 	 	 
	23. Out of service equipment (containers and chassis) remaining on terminal in excess of
calendar days w/o approval from carrier to proceed with necessary repairs will be assessed a
storage charge $ * per container per day.

	 
	 	 	 	 
	       If container is able to be stacked in a normal manner and fits in one container slot then
storage (Item 18) only applies.

	 
	 	 	 	 
	24. Any services not covered by above rates will be charged per terminal tariff. If not listed
in terminal tariff or in above rates then services to be charged on Extra labor basis plus
equipment (Item 14 and 12 above).

	 
	 	 	 	 
	25. Terminal Throughput Fee/Wharfage included in the base lift rate except for non containerized
cargo which will be charged wharfage per the Port Authority of New York and New Jersey Tariff

	 
	 	 	 	 
	26. Fuel Surcharge (Eliminated as of 4/1/2009)
	 	$ * per lift
	      Fuel Surcharge is based on the Bureau of Labor Statistics Producer Price Index No 2 Diesel Fuel
with February 2004 to February 2005 as the basis. This will be reviewed / adjusted once a year
if fuel prices fall below the February 2005 level and eliminated if prices fall below the
February 2004 level.
	 	 	 	 

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	27.   Chassis Switching charge
	 	Straight Time	 	$	*	 
	 
	 	Overtime	 	$	*	 
	To/From truckers equipment From/To chassis
	 	 	 	 	 	 
	Switching of reefer containers from underslung genset chassis
	 	 	 	 	 	 

	 	 	 
	**	 	Subject to minimum labor guarantees

	 	 	 	 	 
	28.   Reefer Fuel will be charged based on the following formula:

	The total number of running reefers loaded and discharged from vessels and barges for the month
times * times * gallons per reefer times the average cost of a gallon of reefer fuel for
the month at fuel vendor’s charge to Contractor plus *.

	 
	 	 	 	 
	Once Horizon has a dedicated genset fleet and upon Horizon providing a minimum 30 days advance
notice in writing, fuel will be based on actual fuel placed in gensets. Cost will be based on
the average weekly cost as published by government at the following web site (or similar web
site if this site no longer exists)
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

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52exv10w1

Exhibit 10.1

DOUBLE EAGLE PETROLEUM CO.

2010 STOCK INCENTIVE PLAN

This 2010 Stock Incentive Plan (the “Plan”) is adopted in consideration for services rendered
and to be rendered to Double Eagle Petroleum Co. (the “Company”).

	 	1.	 	Definitions.

          The terms used in this Plan shall, unless otherwise indicated or required by the particular
context, have the following meanings:

          Agreement: The written Award agreement (and any amendment or supplement thereto)
between the Company and an Eligible Person designating the terms and conditions of an Award.

          Award: Any Option, Restricted Stock, SAR or any combination thereof, together with
any other right or interest granted to a Participant pursuant to this Plan.

          Board: The Board of Directors of Double Eagle Petroleum Co.

          Change in Control: (i) The acquisition, directly or indirectly, by any person or
group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934) of the
beneficial ownership of more than fifty percent of the outstanding securities of the Company, (ii)
a merger or consolidation in which the Company is not the surviving entity, except for a
transaction the principal purpose of which is to change the state in which the Company is
incorporated, (iii) the sale, transfer or other disposition of all or substantially all of the
assets of the Company, (iv) a complete liquidation or dissolution of the Company, or (v) any
reverse merger in which the Company is the surviving entity but in which securities possessing more
than fifty percent of the total combined voting power of the Company’s outstanding securities are
transferred to a person or persons different from the persons holding those securities immediately
prior to such merger.

          Code: The Internal Revenue Code of 1986, as amended, from time to time, including
regulations thereunder and successor provisions and regulations thereto.

          Common Stock: The Common Stock of Double Eagle Petroleum Co.

          Company: Double Eagle Petroleum Co., a corporation incorporated under the laws of
Maryland, and any successors in interest by merger, operation of law, assignment or purchase of all
or substantially all of the property, assets or business of the Company.

          Compensation Committee: The Plan shall be administered by the Compensation Committee,
which shall consist of the Board or a committee of the Board as the Board may from time to time
designate; provided, however, that, unless otherwise determined by the Board, the Compensation
Committee shall consist solely of two or more directors, each of whom shall be (i) a “non-employee
director” within the meaning of Rule 16b-3; and (ii) and an “outside director” as defined under
Section 162(m) of the Code, unless administration of this Plan by an “outside director” has not
been required in order to qualify for tax deductibility under Section 162(m) of the Code.

          Continuous Status: The employment by, or relationship with, the Company or any
Related Company is not interrupted or terminated. The Board, at its sole discretion, may determine
whether Continuous Status shall be considered interrupted due to personal or other mitigating
circumstances, including leaves of absence.

 

          Date of Grant: The date on which the Compensation Committee approves in writing an
Award under the Plan.

          Eligible Person: Officers and Employees and other persons who provide services to the
Company or any Related Company, including directors of the Company or any Related Company.

          Employee: An Employee is an employee of the Company or any Related Company whose
wages are reported on a Form W-2. The Company’s classification as to who is an Employee shall be
determinative for purposes of an individual’s eligibility under the Plan.

          Exchange Act: The Securities Exchange Act of 1934, as amended from time to time,
including rules thereunder and successor provisions and rules thereto.

          Exercise Price: The price per share of Common Stock payable upon exercise of an
Option.

          Fair Market Value: Fair Market Value of a share of Common Stock shall be the closing
price of a share on the date of calculation (or on the last preceding trading day if shares were
not traded on such date) if the shares are readily tradable on a national securities exchange or
other market system, and if the shares are not readily tradable, Fair Market Value shall be
determined, in good faith, by the Compensation Committee.

          Incentive Stock Options (“ISOs”): An Option granted with the intention that it
qualify as an incentive stock option within the meaning of Section 422 of the Code or any successor
provision thereto.

          Non-Incentive Stock Options (“Non-ISOs”): Options that are not intended to qualify as
“Incentive Stock Options” under Section 422 of the Code or any successor provision thereto.

          Option: The rights granted to an Eligible Person in the form of ISOs or Non-ISOs to
purchase Common Stock pursuant to the terms and conditions of an Award Agreement.

          Option Shares: The shares of Common Stock to be issued upon exercise of an Option
granted to an Eligible Person.

          Optionee: An Eligible Person who has been granted an Option.

          Participant: A person who has been granted an Option, Restricted Stock, SAR or any
combination thereof that remains outstanding, including a person who is no longer an Eligible
Person.

          Related Company: Any subsidiary of the Company and any other business venture in
which the Company has a significant interest as determined in the discretion of the Compensation
Committee, provided that solely for purposes of ISOs granted under the Plan, “Related Company”
shall refer only to a “subsidiary” within the meaning of Code Section 424(f).

          Restricted Stock: An Award of shares of Common Stock granted to a Participant
pursuant to Section 15, subject to any restrictions and conditions as are established pursuant to
such Section 15.

          Rule 16b-3: Rule 16b-3, promulgated by the SEC under Section 16 of the Exchange Act,
as from time to time in effect and applicable to this Plan.

          Securities Act: The Securities Act of 1933, as amended from time to time, including
rules thereunder and successor provisions and rules thereto.

          Stock Appreciation Right (“SAR”): A right, granted to a Participant pursuant to
Section 15, to receive Common Stock, cash or a combination thereof at the end of a specified period
based on the appreciation of the Company’s Common Stock during such specified period.

 

	 	2.	 	Purpose and Scope.

	 	(a)	 	The purpose of this Plan is to advance the interests of the Company and its
shareholders by affording Eligible Persons an opportunity for investment in the
Company and the incentive advantages inherent in stock ownership in this Company.
	 
	 	(b)	 	This Plan authorizes the Compensation Committee to grant (i) Options to
purchase shares of Common Stock; (ii) Restricted Stock; (iii) SARs; or (iv) any
combination thereof, to Eligible Persons selected by the Compensation Committee while
considering criteria such as employment position or other relationship with the
Company, duties and responsibilities, ability, productivity, length of service or
association, morale, interest in the Company, recommendations by supervisors, and
other matters.

	 	3.	 	Administration of the Plan. The Plan shall be administered by the
Compensation Committee. The Compensation Committee shall have the authority granted to it
under this section and under each other section of the Plan. The Compensation Committee
shall have the authority, in its sole discretion, to determine the type or types of Awards
to be granted pursuant to the Plan. Such Awards may be granted either alone, in addition
to, or in tandem with, any other type of Award.

                    In accordance with and subject to the provisions of the Plan and Rule 16b-3, the Compensation
Committee shall select the Eligible Persons to receive Awards, shall determine (i) the number of
shares of Common Stock, Restricted Stock or SARs to be subject to each Award, (ii) the time at
which each Award is to be granted, (iii) the extent to which the transferability of shares of
Common Stock issued or transferred pursuant to any Award is restricted, (iv) the Fair Market Value
of the Common Stock, (v) whether to accelerate the time of exercisability of any Award that has
been granted, (vi) the period or periods and extent of exercisability of the Options and (vii) the
manner in which an Option becomes exercisable. In addition, the Compensation Committee shall fix
such other terms of each Award as the Compensation Committee may deem necessary or desirable. The
Compensation Committee shall determine the form, terms and provisions of each Award Agreement to
evidence each Award (which need not be identical).

                    The Compensation Committee from time to time may adopt such rules and regulations for carrying
out the purposes of the Plan as it may deem proper and in the best interests of the Company. The
Compensation Committee shall keep minutes of its meetings and those minutes shall be available to
every member of the Board.

                    All actions taken and all interpretations and determinations made by the Compensation
Committee in good faith (including determinations of Fair Market Value) shall be final and binding
upon all Participants, the Company and all other interested persons. No member of the Compensation
Committee shall be personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, and all members of the Compensation Committee shall, in addition to
rights they may have if Directors of the Company, be fully protected by the Company with respect to
any such action, determination or interpretation.

	 	4.	 	The Common Stock. The Board is authorized to reserve for issuance under the
Plan, and the Compensation Committee is authorized to grant Options, Restricted Stock,
SARs or any combination thereof with respect to, a total number, not in excess of
2,000,000 shares of Common Stock, either treasury or authorized but unissued, as adjusted
pursuant to Section 16. All or any unsold shares subject to any Option, Restricted Stock,
SAR or combination thereof, that for any reason expires or otherwise terminates may again
be made subject to any Option, Restricted Stock, SAR or combination thereof, under the
Plan. No Eligible Person may be granted Options, Restricted Stock, SARs or any
combination thereof under this Plan covering in excess of an aggregate of (500,000 in 2007
Plan) Option Shares and shares of Restricted Stock and SARs in any calendar year, subject
to adjustments pursuant to Section 16.
	 
	 	5.	 	Eligibility. Options that are intended to qualify as ISOs will be granted
only to Employees. Eligible Persons may hold more than one Option under the Plan and may
hold Options under the

 

	 	 	 	Plan and options granted pursuant to other plans or otherwise, and may hold Restricted
Stock and SARs under the Plan.

	 	6.	 	Option Price. The Exercise Price for the Options shall be established by the
Compensation Committee ; provided that the Exercise Price to be paid by Optionees for the
Options shall not be less than 100 percent of the Fair Market Value of the Option Shares
on the Date of Grant (or, in the case of an Eligible Person receiving ISOs who owns stock
possessing more than 10 percent of the total combined voting power of all classes of stock
of the Company, 110 percent of the Fair Market Value of the Option Shares on the Date of
Grant.).
	 
	 	7.	 	Duration and Exercise of Options.

	 	(a)	 	The option period shall commence on the Date of Grant and shall be as set by
the Compensation Committee, but not to exceed 10 years in length (or, in the case of
an Eligible Person receiving ISOs who owns stock possessing more than 10 percent of
the total combined voting power of all classes of stock of the Company, such ISO shall
by its terms not be exercisable after the expiration of five (5) years from the Date
of Grant).
	 
	 	(b)	 	The Compensation Committee shall determine whether an Option shall be
immediately vested and exercisable or if such Option shall become vested and
exercisable in installments.; If the Compensation Committee determines that an Option
shall vest and be exercisable in installments, it shall set forth the number of annual
installments and the vesting percentage of the Option at each installment date in the
Award Agreement. All such installments shall be cumulative. The Compensation
Committee may provide for the accelerated vesting of an Option upon the occurrence of
certain events in the Award Agreement. Other than as provided in a Participant’s
Award Agreement, no vesting shall occur on or after the date that a Participant’s
employment with Company terminates for any reason other than his death, Disability or
Retirement. In determining the number of shares of Common Stock with respect to which
such Awards are vested and exercisable, fractional shares will be rounded up to the
nearest whole number if the fraction is 0.5 or higher, and down if it is less.
	 
	 	(c)	 	The Compensation Committee shall establish and set forth in each Award
Agreement that evidences an Option whether a vested Option shall continue to be
exercisable, and the terms and conditions of such exercise, after a termination of
Continuous Status, any of which provisions may be waived or modified by the
Compensation Committee at any time, provided that any such waiver or modification
shall satisfy the requirements for exemption under Section 409A of the Code.
	 
	 	(d)	 	Each vested Option shall be exercised in whole or in part by delivery to the
Company (or to a brokerage firm designated or approved by the Company) of written
notice of the number of shares with respect to which the Option is to be exercised and
by paying in full the Exercise Price for the Option Shares purchased as set forth in
Section 8; provided, that an Option may not be exercised in part unless the aggregate
exercise price for the Option Shares purchased is at least $1,000.
	 
	 	(e)	 	No Option may be granted under this Plan until the Plan is approved by the
shareholders of the Company as provided in Section 17 below.

	 	8.	 	Payment for Option Shares. If the aggregate purchase price of the Option
Shares purchased by any Optionee at one time exceeds $5,000, the Compensation Committee
may permit all or part of the Exercise Price for the Option Shares to be paid by delivery
to the Company for cancellation shares of the Company’s Common Stock owned by the Optionee
with an aggregate Fair Market Value as of the date of payment equal to the portion of the
Exercise Price for the Option Shares that the Optionee does not pay in cash. In the case
of all other Option exercises, the Exercise Price shall be paid in cash or check upon
exercise of the Option, except that the Compensation Committee may permit an Optionee to
elect to pay the Exercise Price upon the exercise of an

 

	 	 	 	Option by authorizing a third party broker-dealer in securities approved by the
Compensation Committee to sell some or all of the Option Shares acquired upon exercise of
an Option and remit to the Company a sufficient portion of the sale proceeds to pay the
entire Exercise Price and any tax withholding resulting from such exercise.

	 	9.	 	Relationship to Employment or Position. Nothing contained in the Plan, or in
any Option, Restricted Stock Award, SAR or any combination thereof granted pursuant to the
Plan, shall confer upon any Participant any right with respect to continuance of
employment by, or other relationship with, the Company, or interfere in any way with the
right of the Company to terminate the Participant’s employment as an Employee or other
position or relationship, at any time.
	 
	 	10.	 	Nontransferability of Option. Except as otherwise provided by the
Compensation Committee, no Option granted under the Plan shall be transferable by the
Optionee, either voluntarily or involuntarily, except by will or the laws of descent and
distribution.
	 
	 	11.	 	Rights as a Shareholder. No person shall have any rights as a shareholder
with respect to any share covered by an Option until that person shall become the holder
of record of such share and, except as provided in Section 16, no adjustments shall be
made for dividends or other distributions or other rights as to which there is an earlier
record date.
	 
	 	12.	 	Securities Laws Requirements. No Option Shares shall be issued unless and
until, in the opinion of the Company, any applicable registration requirements of the
Securities Act of 1933, as amended, any applicable listing requirements of any securities
exchange on which stock of the same class is then listed, and any other requirements of
law or of any regulatory bodies having jurisdiction over such issuance and delivery, have
been fully complied with. Each Option and each Option Share certificate may be imprinted
with legends reflecting federal and state securities laws, restrictions and conditions,
and the Company may comply therewith and issue “stop transfer” instructions to its
transfer agent and registrar in good faith without liability.
	 
	 	13.	 	Disposition of Shares. Each Optionee, as a condition of exercise, shall
represent, warrant and agree, in a form of written certificate approved by the Company, as
follows: (a) that all Option Shares are being acquired solely for his own account and not
on behalf of any other person or entity; (b) that no Option Shares will be sold or
otherwise distributed in violation of the Securities Act of 1933, as amended, or any other
applicable federal or state securities laws; (c) that he will report all sales of Option
Shares to the Company in writing on a form prescribed by the Company; and (d) that if he
is subject to reporting requirements under Section 16(a) of the Exchange Act, (i) he will
not violate Section 16(b) of the Exchange Act, (ii) he will furnish the Company with a
copy of each Form 4 and Form 5 filed by him or her, and (iii) he will timely file all
reports required under the federal securities laws.
	 
	 	 	 	Each Optionee shall immediately notify the Company in writing of any sale, transfer,
assignment or other disposition (or other action constituting a disqualifying disposition
within the meaning of Section 421 of the Code) of any shares of Common Stock acquired
through exercise of an ISO, within two years after the grant of such ISO or within one year
after the acquisition of such shares, setting forth the date and manner of disposition, the
number of shares disposed of and the price at which such shares were disposed. The Company
shall be entitled to withhold from any compensation or other payments then or thereafter
due to the Optionee such amounts as may be necessary to satisfy the minimum withholding
requirements of federal or state law or regulation and, further, to collect from the
Optionee any additional amounts that may be required for such purpose. The Company may, in
its discretion, require shares of Common Stock acquired by an Optionee upon exercise of an
ISO to be held in an escrow arrangement for the purpose of enabling compliance with the
provisions of this section.
	 
	 	14.	 	Incentive Stock Options. To the extent that the aggregate Fair Market Value
of Common Stock with respect to which ISO’s are exercisable for the first time by a
Participant during any calendar

 

	 	 	 	year exceeds $100,000, or, if different, the maximum limitation in effect at the Date of
Grant under the Code (the Fair Market Value being determined as of the Date of Grant for
the Option), such portion in excess of $100,000 shall be treated as Non-ISO’s.

	 	15.	 	Restricted Stock and SARs.

	 	(a)	 	Restricted Stock. The Compensation Committee is authorized to grant
Restricted Stock to Participants on the following terms and conditions:

	 	i.	 	Grant and Restrictions. Restricted Stock shall be subject to
such restrictions on transferability, risk of forfeiture and other
restrictions, if any, as the Compensation Committee may impose, which
restrictions may lapse separately or in combination at such times, under such
circumstances (including based on achievement of performance goals and/or
future service requirements), in such installments or otherwise, as the
Compensation Committee may determine at the date of grant. During the
restricted period applicable to the Restricted Stock, the Restricted Stock may
not be sold, transferred, pledged, hypothecated, margined or otherwise
encumbered by the Participant.
	 
	 	ii.	 	Certificates for Stock. Restricted Stock granted under this
Plan may be evidenced in such manner as the Compensation Committee shall
determine. If certificates representing Restricted Stock are registered in
the name of the Participant, the Compensation Committee may require that such
certificates bear an appropriate legend referring to the terms, conditions and
restrictions of the certificates, and that the Participant deliver a stock
power to the Company, endorsed in blank, relating to the Restricted Stock.
	 
	 	iii.	 	Dividends and Splits. As a condition to the grant of an
Award of Restricted Stock, the Compensation Committee may require or permit a
Participant to elect that any cash dividends paid on a share of Restricted
Stock be automatically reinvested in additional shares of Restricted Stock or
applied to the purchase of additional Awards under this Plan. Unless
otherwise determined by the Compensation Committee, stock distributed in
connection with a stock split or stock dividend, and other property
distributed as a dividend, shall be subject to restrictions and a risk of
forfeiture to the same extent as the Restricted Stock with respect to which
such stock or other property has been distributed.

	 	(b)	 	SARs. The Compensation Committee is authorized to grant SARs to
Participants. A SAR entitles a Participant to receive, subject to the provisions of
the Plan and the Award Agreement, Common Stock, cash or a combination thereof having
an aggregate value equal to the product of (i) the excess of a) the Fair Market Value
of one share of Common Stock as of the end of the specified period over b) the base
value per share specified in Award Agreement, multiplied by (ii) the number of shares
specified in the Award, subject to the following terms and conditions:

	 	i.	 	Award and Restrictions. Settlement of an Award of SARs shall
occur upon expiration of the specified period for such SAR by the Compensation
Committee. In addition, SARs shall be subject to such restrictions (which may
include a risk of forfeiture) as the Compensation Committee may impose, if
any, which restrictions may lapse at the expiration of the specified period or
at earlier specified times (including based on achievement of performance
goals and/or future service requirements), separately or in combination, in
installments or otherwise, as the Compensation Committee may determine. The
Compensation Committee shall set the base value of each SAR (against which
appreciation shall be measured) at not less than the Fair Market Value of a
share of the Company’s Common Stock as of the Date of Grant. SARs shall be
satisfied by

 

	 	 	 	the delivery of cash, Common Stock or a combination thereof in an amount
equal to the value of the appreciation of the specified number of shares
of Common Stock covered by SARs during the relevant period, as determined
by the Compensation Committee and set forth in the Award Agreement.

	 	ii.	 	Dividend Equivalents. Unless otherwise determined by the
Compensation Committee at date of grant, Dividend Equivalents on the specified
number of shares of Common Stock covered by an Award of SARs shall be either
(a) paid with respect to such SARs on the dividend payment date in cash or in
shares of unrestricted Common Stock having a Fair Market Value equal to the
amount of such dividends, or (b) deferred with respect to such SARs and the
amount or value thereof automatically deemed reinvested in additional SARs,
other Awards or other investment vehicles, as the Compensation Committee shall
determine or permit the Participant to elect.

	 	(c)	 	Waiver of Restrictions. The Compensation Committee, in its sole discretion,
may waive all or any portion of the forfeiture period and any other terms, conditions,
or restrictions on any Restricted Stock or SARs under such circumstances and subject
to such terms and conditions as the Compensation Committee shall deem appropriate;
provided, however, that the Compensation Committee may not adjust performance goals
for any Restricted Stock or SARs intended to be exempt under Section 162(m) of the
Code for the year in which the Restricted Stock or SAR is settled in such a manner as
would increase the amount of compensation otherwise payable to a Participant.

	 	16.	 	Change in Stock, Adjustments, Etc. In the event that each of the outstanding
shares of Common Stock (other than shares held by dissenting shareholders that are not
changed or exchanged) should be changed into, or exchanged for, a different number or kind
of shares of stock or other securities of the Company, or, if further changes or exchanges
of any stock or other securities into which the Common Stock shall have been changed, or
for which it shall have been exchanged, shall be made (whether by reason of merger,
consolidation, reorganization, recapitalization, stock dividends, reclassification,
split-up, combination of shares or otherwise), then appropriate adjustment shall be made
by the Compensation Committee to the aggregate number and kind of shares subject to this
Plan, and the number and kind of shares and the price per share subject to outstanding
Options, Restricted Stock, SARs or any combination thereof as provided in the respective
Agreements in order to preserve, as nearly as practical, but not to increase, the benefits
to Participants.
	 
	 	17.	 	Effective Date of Plan; Termination Date of Plan. Subject to the approval of
the Plan by the affirmative vote of the holders of a majority of the Company’s securities
entitled to vote and represented at a meeting duly held in accordance with applicable law,
the Plan shall be deemed effective January 1, 2010. The Plan shall terminate at midnight
on December 31, 2020, except as to Options or SARs previously granted and outstanding
under the Plan at that time. No Options, Restricted Stock, SARs or any combination
thereof shall be granted after the date on which the Plan terminates. The Plan may be
abandoned or terminated at any earlier time by the Board, except with respect to any
Options, Restricted Stock, SARs or any combination thereof then outstanding under the
Plan.
	 
	 	18.	 	Withholding Taxes. The Company, or any Related Company, may take such steps
as it may deem necessary or appropriate for the minimum required withholding of any taxes
that the Company, or any Related Company, is required by any law or regulation or any
governmental authority, whether federal, state or local, domestic or foreign, to withhold
in connection with any Award including, but not limited to, the withholding of all or any
portion of any payment or the withholding of issuance of Option Shares, Restricted Stock
or SARs.

 

	 	19.	 	Change in Control.

          In the event of a Change in Control of the Company, (a) the Compensation Committee, in its
discretion, may, at any time an Award is granted, or at any time thereafter, accelerate the time
period relating to the exercise or vesting of any Options, Restricted Stock and SARs, and (b) with
respect to Options, Restricted Stock and SARs, the Compensation Committee in its sole discretion
may, at any time an Award is granted, or at any time thereafter, take one or more of the following
actions, which may vary among individual Participants: (i) provide for the purchase of an Option,
Restricted Stock and SAR for an amount of cash or other property that could have been received upon
the exercise of the Option, Restricted Stock and SAR had the instrument been currently exercisable,
(ii) adjust the terms of the Awards in a manner determined by the Compensation Committee to reflect
the Change in Control, (iii) cause the Awards to be assumed, or new rights substituted therefor, by
another entity, through the continuance of the Plan and the assumption of outstanding Options,
Restricted Stock and SARs, or the substitution for such Options, Restricted Stock, SARs or any
combination thereof of comparable value covering shares of a successor corporation, with
appropriate adjustments as to the number and kind of shares and exercise prices, in which event the
Plan and such Options, Restricted Stock and SARs, or the new options and rights substituted
therefor, shall continue in the manner and under the terms so provided, (iv) accelerate the time at
which Options or SARs then outstanding may be exercised so that such Options or SARs may be
exercised for a limited period of time on or before a specified date fixed by the Compensation
Committee, after which specified date, all unexercised Options or SARs and all rights of Optionees
and SAR participants thereunder shall terminate, or (v) make such other provision as the Committee
may consider equitable.

	 	20.	 	Amendment.

	 	(a)	 	The Board may amend, alter or discontinue the Plan, but no amendment,
alteration or discontinuation shall be made that would impair the right of a
Participant under an outstanding Agreement. In addition, no such amendment shall be
made without the approval of the Company’s shareholders to the extent such approval is
required by law or agreement.
	 
	 	(b)	 	The Committee may amend the terms of any Award theretofore granted,
prospectively or retroactively, but no such amendment shall impair the rights of any
Participant without the Participant’s consent.
	 
	 	(c)	 	Subject to the above provisions, the Board shall have authority to amend the
Plan to take into account changes in law and tax and accounting rules as well as other
developments, and to grant Awards that qualify for beneficial treatment under such
rules without shareholder approval.

	 	21.	 	Other Provisions.

	 	(a)	 	The use of a masculine gender in the Plan shall also include within its
meaning the feminine, and the singular may include the plural, and the plural may
include the singular, unless the context clearly indicates to the contrary.
	 
	 	(b)	 	Any expenses of administering the Plan shall be borne by the Company.
	 
	 	(c)	 	This Plan shall be construed to be in addition to any and all other
compensation plans or programs. Neither the adoption of the Plan by the Board nor the
submission of the Plan to the shareholders of the Company for approval shall be
construed as creating any limitations on the power or authority of the Board to adopt
such other additional incentive or other compensation arrangements as the Board may
deem necessary or desirable.
	 
	 	(d)	 	The validity, construction, interpretation, administration and effect of the
Plan and of its rules and regulations, and the rights of any and all personnel having
or claiming to have an interest therein or thereunder shall be governed by and
determined exclusively and solely in accordance with the laws of the State of
Maryland.

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