Document:

Horizon Lines, Inc., Equity Incentive Plan

 Exhibit 10.45 
  
 HORIZON LINES, INC. 
 EQUITY INCENTIVE PLAN 
  
 1. Purpose. The purpose of the Horizon Lines, Inc. Equity Incentive Plan is to attract, motivate and retain eligible individuals who are important to the success of Horizon Lines, Inc. and to provide equity grants to non-employee
directors of Horizon Lines, Inc. 
  
 2. Definitions. When
used herein, the following terms shall have the following meanings. 
  
 “Administrator” means the Board, or a committee of the Board, duly appointed to administer the Plan and shall be composed to meet the requirements of Section 162(m) of the Code and the requirements established by the securities
exchange or system on which the Shares are traded or listed if such requirements are applicable; provided, however, that with respect to the participation of non-employee directors of the Company in the Plan, the term
“Administrator” means the Board. 
  
 “Affiliate” means, with respect to any specified Person, a Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such specified Person (it being
understood that a Person shall be deemed to “control” another Person, for purposes of this definition, if such Person directly or indirectly has the power to direct or cause the direction of the management and policies of such other
Person, whether through holding beneficial ownership interests in such other Person, through contracts or otherwise). For purposes of an individual, an Affiliate of such individual shall also mean any family member of such individual or a Person
owned 10% or more by such individual. 
  
 “Award” means,
individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options, Restricted Stock or Restricted Share Units. 
  
 “Award Agreement” means an agreement entered into by the Company and each Participant setting forth the terms and provisions applicable to an
Award. 
  
 “Board” means the Board of Directors of the
Company. 
  
 “Castle Harlan Group” means CHP IV, CHI and
any other accounts or funds managed by CHI or any Affiliate of CHI, other than the Company and its Subsidiaries 
  
 “Cause” means, with respect to a Participant who is an employee of the Company or any Subsidiary thereof, (a) the Participant’s continued
failure for a period of 90 days, including the ten (10) business day notice and cure period set forth in the next sentence, to substantially perform the Participant’s duties, (b) the Participant’s failure to follow the lawful directions of
the board of directors of the Company or any Subsidiary thereof by whom the Participant is then employed, either directly or indirectly through its Chairman, if any, or such Participant’s supervisor, (c) material, willful acts of dishonesty,
theft or fraud by the Participant resulting or intending to result in personal gain or enrichment at the expense of the Company or any of its 

 
Subsidiaries, (d) the Participant’s conviction, plea of no contest or plea of no contendere, or the imposition of unadjudicated probation on the
Participant, for any felony involving moral turpitude that is reasonably expected to be detrimental to the reputation, business or operations of the Company or any of its Subsidiaries or any member of their respective boards of directors or similar
governing bodies, (e) the Participant’s violation of any written policy of the Company or any of its Subsidiaries, including, but not limited to, employment manuals, rules and regulations of the Company or any of its Subsidiaries by whom the
Participant is then employed, which adversely affects the Company or any of its Subsidiaries by whom the Participant is then employed or could reasonably be expected to adversely affect the Company or any of its Subsidiaries by whom the Participant
is then employed, (f) the Participant engaging in any act that is intended, or may reasonably be expected to harm the reputation, business or operations of the Company or any of its Subsidiaries by whom the Participant is then employed or any member
of their respective boards of directors or similar governing bodies, or (g) any other material breach by the Participant of such Participant’s Award Agreement or any other agreement with the Company or any of its Subsidiaries that the
Participant signs in such Participant’s personal capacity, including, but not limited to, any non-competition and confidentiality agreement. Prior to a termination for “Cause,” the Participant shall be entitled to written notice from
the Company and ten (10) business days to cure the deficiency leading to the Cause determination, if such deficiency is curable. Notwithstanding the foregoing and without limiting the foregoing in any way, for the avoidance of doubt, the Participant
shall receive written notice and ten (10) business days to cure a deficiency under subsections (a) and (b) hereof. Notwithstanding the foregoing, to the extent that the Participant is subject to an employment agreement with the Company and/or one of
its Subsidiaries that contains a definition of cause, “Cause” under the Plan shall be as defined in such employment agreement. 
  
 “Cause” means, with respect to a Participant who is a consultant of the Company or any Subsidiary thereof, (a) the Participant’s continued
failure for a period of 90 days, including the ten (10) business day notice and cure period set forth in the next sentence, to substantially perform the Participant’s duties, (b) the Participant’s material, willful acts of dishonesty,
theft or fraud resulting or intending to result in personal gain or enrichment at the expense of the Company or any of its Subsidiaries, (c) the Participant’s conviction, plea of no contest or plea of no contendere, or the imposition of
unadjudicated probation on the Participant, for any felony involving moral turpitude, (d) the Participant engaging in any act that is intended, or may reasonably be expected to harm the reputation, business or operations of the Company or any of its
Subsidiaries for whom the Participant is then providing services, or (e) any other material breach by the Participant of such Participant’s Award Agreement or any other agreement with the Company or any of its Subsidiaries that the Participant
signs in such Participant’s personal capacity, including, but not limited to, any non-competition and confidentiality agreement. Prior to a termination for “Cause,” the Participant shall be entitled to written notice from the Company
and ten (10) business days to cure the deficiency leading to the Cause determination, if such deficiency is curable. Notwithstanding the foregoing and without limiting the foregoing in any way, for the avoidance of doubt, the Participant shall
receive written notice and ten (10) business days to cure a deficiency under subsection (a) hereof. Notwithstanding the foregoing, to the extent that the Participant is subject to a consulting agreement with the Company and/or one of its
Subsidiaries that contains a definition of cause, “Cause” under the Plan shall be as defined in such consulting agreement. 
  

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 “Cause” means, with respect to a Participant who is a non-employee director of the Company, the
removal of the Participant for cause during such Participant’s existing term as a director in accordance with the Company Charter or bylaws of the Company or the certificate of incorporation, bylaws, or limited liability company agreement of a
Subsidiary of the Company. 
  
 “CHI” means Castle
Harlan, Inc., a Delaware corporation. 
  
 “CHP IV” means
Castle Harlan Partners IV, L.P., a Delaware limited partnership. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute thereto. 
  
 “Common Stock” means the Common Stock of the Company, par value $.01 per share. 
  
 “Company” means Horizon Lines, Inc., a Delaware corporation and its successors. 
  
 “Company Charter” means the certificate of incorporation of the
Company, as the same exists or may hereafter be amended or otherwise supplemented from time to time, and including any certificates of designation filed with the Secretary of State of the State of Delaware from time to time in accordance with the
terms thereof. 
  
 “Disability” means, with respect to a
Participant who is an employee or consultant of the Company or a Subsidiary thereof, a determination by the Company, in accordance with applicable law that, as a result of a physical or mental injury or illness, the Participant is unable to perform
the essential functions of the Participant’s job with or without reasonable accommodation. Notwithstanding the foregoing, to the extent that the Participant is subject to an employment agreement with the Company and/or one of its Subsidiaries
that contains a definition of disability, “Disability” under the Plan shall be as defined in such employment agreement or if the Participant is not subject to an employment agreement with the Company and/or one of its Subsidiaries and such
Participant is covered by a disability policy covering employees of the Company and/or the relevant Subsidiary by whom the Participant is then employed, then “Disability” shall be defined as such term is defined in such policy. 

 
 “Disability” means, with respect to a Participant who is a
non-employee director of the Company, a physical or mental injury or illness which prevents the Participant from fulfilling the Participant’s duties as director with or without reasonable accommodation. 
  
 “Effective Date” means the date set forth in Section 22 hereof.

  
 “Exchange Act” means the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder. 
  
 “Fair Market Value” means, on any day, with respect to Shares which are (a) listed on a United States securities exchange, the last sales price of such stock on such day on the largest United States securities exchange on which
such stock shall have traded on such day, or if such day is not a day on which a United States securities exchange is open for trading, on the 

  

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immediately preceding day on which such securities exchange was open, (b) not listed on a United States securities exchange but are included in The NASDAQ
Stock Market System (including The NASDAQ National Market), the last sales price on such system of such stock on such day, or if such day is not a trading day, on the immediately preceding trading day, or (c) neither listed on a United States
securities exchange nor included in The NASDAQ Stock Market System, the fair market value of such stock as determined by the Board, in its sole discretion. 
  
 “Grant Date” means the date on which an Option under the Plan is granted to a Participant. 
  
 “Incentive Stock Option” means an Option that is designated by the
Administrator as an incentive stock option and qualifies as such within the meaning of Section 422 of the Code and is granted by the Administrator to a Participant. 
  
 “Key Employee” means an employee who owns more than 10% of the total combined voting power of all classes of
capital stock of the Company, determined at the time an Option is proposed to be granted. 
  
 “Nonqualified Stock Option” means an Option, which is not an Incentive Stock Option, granted by the Administrator to a Participant. 
  
 “Option” means a right granted under the Plan to a Participant to purchase a stated number of Shares as an
Incentive Stock Option or Nonqualified Stock Option. 
  
 “Option Period” means the period within which an Option may be exercised pursuant to the Plan. 
  
 “Participant” means any employee or consultant of the Company or any Subsidiary thereof, or any non-employee director of the Company, who is
selected to participate in the Plan in accordance with Section 4 hereof. 
  
 “Period of Restriction” means the period, if any, specified in an Award Agreement during which the transfer of Shares of Restricted Stock or Restricted Share Units is limited in some way (based on the
passage of time, the achievement of a performance target, if applicable, or upon the occurrence of other events as determined by the Administrator, at its discretion), and the Common Stock is subject to a substantial risk of forfeiture, as provided
in Section 7 or Section 8 herein. 
  
 “Person” means any
individual, partnership, firm, trust, corporation, limited liability company or other similar entity. When two or more Persons act as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of
Shares of the Company, such partnership, limited partnership, syndicate or group shall be deemed a “Person.” 
  
 “Plan” means the Horizon Lines, Inc. Equity Incentive Plan, as amended from time to time. 
  
 “Plan Year” means the fiscal year of the Company. 
  

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 “Public Offering” shall mean a public offering of equity interests of the Company or any of its
Subsidiaries or any of their successors. 
  
 “Restricted
Share Unit” means an Award for Shares granted to a Participant pursuant to Section 8 herein. 
  
 “Restricted Stock” means an Award of Shares granted to a Participant pursuant to Section 7 herein. 
  
 “Shares” means the shares of the Common Stock. 
  
 “Subsidiary” means any Person more than 50% of the outstanding
voting or equity securities of which, or any partnership, joint venture or other entity more than 50% of the total equity or other economic interest of which, is directly or indirectly owned by another Person. 
  
 3. Administration. The Plan shall be administered by the
Administrator. Subject to the provisions of the Plan, the Administrator shall have the authority to: 
  

	 	(a)	select the Participants; 

  

	 	(b)	determine the number of Shares covered by any Award granted to a Participant and other terms of an Award, including, but not limited to, the exercise price and vesting schedule of
an Award; provided, however, that no Award shall be granted after the expiration of the period of ten (10) years from the Effective Date; 

  

	 	(c)	determine whether each Award shall be a grant of an Incentive Stock Option, a Nonqualified Stock Option, Restricted Stock or Restricted Share Unit; and 

  

	 	(d)	establish from time to time regulations for the administration of the Plan, interpret the Plan, delegate in writing administrative matters to committees of the Board or to other
persons, and make such other determinations and take such other action, as it deems necessary or advisable for the administration of the Plan. 

  
 All decisions, actions and interpretations of the Administrator shall be final, conclusive and binding upon all parties. 
  
 4. Participation. Participants in the Plan shall be limited to those
employees and consultants of the Company or any Subsidiary thereof, and those non-employee directors of the Company, who have been notified in writing by the Administrator that they have been selected by the Administrator to participate in the Plan.

  
 5. Shares Subject to the Plan. Awards may be granted by
the Administrator to Participants from time to time. The Shares issued with respect to Awards granted under the Plan may be authorized and unissued Shares, or, if applicable and done pursuant to applicable law or 

  

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regulation, Shares purchased on the open market by the Company (at such time or times and in such manner as it may determine). The Company shall be under no
obligation to acquire Common Stock for distribution to optionholders before payment in Shares is due. If any Award granted under the Plan shall be canceled or shall expire without the Shares covered by such Award being purchased by the applicable
Award holder thereunder, new Awards may thereafter be granted covering such Shares. 
  
 The maximum aggregate number of Shares available to be granted under the Plan is equal to
[                            ] Shares and such Shares shall be reserved from the Company’s
authorized and unissued share capital for Awards granted under the Plan (subject to adjustment as provided in Section 11). 
  
 6. Terms and Conditions of Options. Each Option granted under the Plan shall be evidenced by an Award Agreement, which shall contain such terms and
conditions as the Administrator may deem appropriate. The provisions of separate Award Agreements need not be identical, but each Award Agreement shall include (through incorporation of provisions hereof by reference in the Award Agreement or
otherwise) the substance of each of the following provisions: 
  

	 	(a)	Option Period. Each Option agreement shall specify that the Option thereunder is granted for a period of ten (10) years, or such shorter period as the Administrator may
determine, from the date of grant and shall provide that the Option shall expire on such ten (10) year anniversary, or shorter period, as the case may be (unless earlier exercised or terminated pursuant to its terms); provided,
however, that any Incentive Stock Option granted to a Key Employee shall specify that the Incentive Stock Option is granted for a period of five (5) years from the date of grant and shall expire on such five (5) year anniversary.

  

	 	(b)	Option Price. The Option price per Share shall be the Fair Market Value at the time the Option is granted; provided, however, that the Option price per Share
for any Incentive Stock Option granted to a Key Employee shall equal 110% of the Fair Market Value at the time the Incentive Stock Option is granted. 

  

	 	(c)	Vesting. The Administrator, in its sole discretion shall determine the vesting provisions applicable to the Options under the Plan, and such vesting provisions, including,
but not limited to, time-based and/or performance-based vesting, shall be set forth in the Award Agreement. The vesting provisions in individual Award Agreements may vary. The Administrator reserves the right, in its sole discretion, to waive or
reduce the vesting requirements applicable to any Options at any time. 

  

	 	(d)	 Limitation on Amount of Incentive Stock Options Granted. Options shall be treated as Incentive Stock Options only to the extent that the aggregate Fair
Market Value of Stock with respect to which Incentive Stock Options are exercisable for the first time by any optionholder during any calendar 

  

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year (whether under the terms of the Plan or any other stock option plan of the Company or of its parent or any corporate Subsidiary) is $100,000 or less. To
the extent that such aggregate Fair Market Value exceeds $100,000, the Options shall be treated as Nonqualified Stock Options. Fair Market Value shall be determined as of the time the Option with respect to such Stock is granted.

  

	 	(e)	Limitations on Granting of Options. The Administrator shall have the authority and discretion to grant to an eligible employee either Incentive Stock Options or Nonqualified
Stock Options or both, but shall clearly designate the nature of each Option at the time of grant in the Option agreement. A Participant who is a consultant or non-employee director may only receive Nonqualified Stock Options.

  

	 	(f)	Payment of Option Price Upon Exercise. The option price of the Shares as to which an Option shall be exercised shall be paid to the Company at the time of exercise in cash or
such other method approved by the Administrator. 

  

	 	(g)	Termination of Employment or Relationship. Unless otherwise determined by the Administrator, in its sole discretion or as otherwise set forth in an Award Agreement:

  

	 	(i)	In the event of (x) the termination of a Participant’s employment relationship with the Company or any Subsidiary thereof by the Company or any Subsidiary thereof for Cause
(within the meaning of clause (a) or (e) of the definition thereof applicable to employees), or (y) the termination of a Participant’s consulting relationship with the Company or any Subsidiary thereof by the Company or any Subsidiary thereof
for Cause (within the meaning of clause (a) of the definition thereof applicable to consultants), (i) any unvested portion of the Participant’s Option shall terminate on the date of termination and (ii) the Participant may exercise any portion
of the Participant’s Option that was vested and exercisable on the date of his or her termination or relationship until the 30th day following the date of the termination of such employment or consulting relationship, and any portion of such Option not exercised within such period shall be forfeited. 

  

	 	(ii)	 in the event of (x) the termination of a Participant’s employment relationship with the Company or any Subsidiary thereof by the Company or any Subsidiary
thereof for Cause (other than within the meaning of clause (a) or (e) of the definition thereof applicable to employees), (y) the termination of a Participant’s consulting relationship with the Company or any Subsidiary thereof by the Company
or any Subsidiary thereof for Cause (other than within the meaning of clause (a) of the definition thereof applicable to 

  

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consultants), or (z) in the case of a Participant who is a non-employee director of the Company, the termination of Participant’s status as a director
of the Company for Cause, the Participant’s Option (whether or not vested) shall terminate on the date of such termination. 

  

	 	(iii)	With respect to a Participant who is an employee or consultant of the Company or any Subsidiary thereof, in the event of (x) the termination by the Company or any Subsidiary thereof
(other than for Cause) of the Participant’s employment or consulting relationship with the Company or any Subsidiary thereof or (y) the resignation of the Participant for any reason as an employee of, or consultant to, the Company or any
Subsidiary thereof, including, but not limited to, on account of retirement (other than on account of death or Disability), (i) any unvested portion of the Participant’s Option shall terminate and (ii) the Participant may exercise for a period
of time ending on the earlier of (x) 3 months after the date of termination and (y) the expiration of the Option Period, any portion of the Participant’s Option that was vested and exercisable on the date of his or her termination of employment
or relationship, and any portion of such Option not exercised within such period shall be forfeited. 

  

	 	(iv)	With respect to a Participant who is a non-employee director of the Company, in the event of the termination (other than for Cause) of the Participant as a director of the Company
or the resignation by the Participant as a director of the Company (other than on account of death or Disability), (i) any unvested portion of the Participant’s Option shall terminate and (ii) the Participant may exercise for a period of time
ending on the earlier of (a) 3 months after the date of termination and (b) the expiration of the Option Period, any portion of the Participant’s Option that was vested and exercisable on the date of his or her termination of relationship, and
any portion of such Option not exercised within such period shall be forfeited. 

  

	 	(v)	 In the event of the termination of the Participant’s employment or consulting relationship with the Company or any Subsidiary thereof, or, in the case of a
Participant who is a non-employee director of the Company, the termination of the Participant’s status as a director of the Company, on account of the Participant’s death or Disability, (i) any unvested portion of the Participant’s
Option shall terminate and (ii) the Participant (or his or her personal representative) may exercise for a period of time ending on the earlier of (x) one year from the date of such termination or (y) the expiration of the Option Period, any portion
of the Participant’s Option that was vested and exercisable on the date of such 

  

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termination, and any portion of such Option not exercised within such period shall be forfeited. 

  

	 	(h)	Company Repurchase Right. 

  

	 	(i)	Unless otherwise provided in an Award Agreement, in the event of (x) the termination of a Participant’s employment relationship with the Company or any Subsidiary thereof by
the Company or any Subsidiary thereof for Cause (within the meaning of clause (a) or (e) of the definition thereof applicable to employees), or (y) the termination of a Participant’s consulting relationship with the Company or any Subsidiary
thereof by the Company or any Subsidiary thereof for Cause (within the meaning of clause (a) of the definition thereof applicable to consultants), the Company shall have the right, but not the obligation, to purchase from the Participant and to
cause the Participant to sell the number of Shares equal to the Shares issued to Participant in connection with the exercise of an Option for an aggregate amount equal to the Fair Market Value of the Shares on the date of such termination. Any
amount payable to the Participant under this Section 6(h)(i) shall be payable in cash upon the closing of the repurchase of the Shares. 

  

	 	(ii)	Unless otherwise provided in an Award Agreement, in the event of (x) the termination of a Participant’s employment relationship with the Company or any Subsidiary thereof by
the Company or any Subsidiary thereof for Cause (other than within the meaning of clause (a) or (e) of the definition thereof applicable to employees), (y) the termination of a Participant’s consulting relationship with the Company or any
Subsidiary thereof by the Company or any Subsidiary thereof for Cause (other than within the meaning of clause (a) of the definition thereof applicable to consultants), or (z) the termination of the status of a Participant as a director of the
Company and, prior to such termination, the Participant was a non-employee director of the Company, the Company shall have the right, but not the obligation, to purchase from the Participant and to cause the Participant to sell the number of Shares
equal to the Shares issued to Participant in connection with the exercise of an Option for an aggregate amount equal to the lower of (i) the Fair Market Value of the Shares on the date of such termination and (ii) the price paid by the Participant
for the Shares. Any amount payable to the Participant under this Section 6(h)(ii) shall be payable in cash upon the closing of the repurchase of the Shares. 

  

	 	(i)	 Transferability of Options. No Option granted under the Plan and no right arising under such Option shall be transferable other than by will or by the
applicable laws of descent and distribution. During the lifetime of the 

  

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Participant an Option shall be exercisable only by such Participant. Any Option exercisable at the date of the Participant’s death and transferred by
will or by the applicable laws of descent and distribution shall be exercisable in accordance with the terms of such Option by the executor or administrator, as the case may be, of the Participant’s estate (each, a “Designated
Beneficiary”) for a period provided in paragraph (g)(iv) above or such longer period as the Administrator may determine, and shall then terminate. 

  

	 	(j)	Investment Representation. Each Award Agreement may contain an undertaking that, upon demand by the Administrator for such a representation, the Participant or his or her
Designated Beneficiary, as the case may be, shall deliver to the Administrator at the time of any exercise of an Option a written representation that the Shares to be acquired upon such exercise are to be acquired for such Participant’s or
Designated Beneficiary’s own account and not with a view to, or for resale in connection with, any distribution. Upon such demand, delivery of such representation prior to the delivery of any Shares issued upon exercise of an Option shall be a
condition precedent to the right of the Participant or his or her Designated Beneficiary to purchase any Shares. 

  

	 	(k)	Optionholders to Have No Rights as Stockholders. No optionholder shall have any rights as a stockholder with respect to any Shares subject to such optionholder’s Option
prior to the exercise of any Option. 

  

	 	(l)	Other Option Provisions. The form of Award Agreement applicable to Options authorized by the Plan may contain such other provisions, consistent with this Plan, as the
Administrator may, from time to time, determine, including, without limitation, covenants of the optionholders to comply, from and after the exercise of Options, with the provisions of the Company Charter that by their terms are applicable to
holders of shares of any class or series of capital stock of the Company as a condition to acquiring and holding title to or a beneficial interest in such shares. 

  

	 	(m)	Notification of Sales of Common Stock. Any optionholder who disposes of Shares acquired upon the exercise of an Incentive Stock Option either (a) within two (2) years from
the date of the grant of the Incentive Stock Option under which the Common Stock was acquired or (b) within one (1) year after the transfer of such Shares to the optionholder, shall notify the Company of such disposition and of the amount realized
upon such disposition. 

  

	 	(n)	 Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect
to which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Subsidiaries) exceeds one hundred thousand 

  

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dollars ($100,000), the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as
Nonqualified Stock Options. 

  
 7. Restricted
Stock. 
  

	 	(a)	Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Awards of Restricted Stock to
Participants in such amounts as the Administrator shall determine. 

  

	 	(b)	Restricted Stock Agreement. Each Award applicable to Restricted Stock shall be evidenced by an Award Agreement that shall specify the restrictions, including restrictions
creating a substantial risk of forfeiture, the Period(s) of Restriction, the number of Shares of Restricted Stock granted, and such other provisions as the Administrator shall determine. Restrictions on Restricted Stock shall lapse, or the
Restricted Stock shall vest, at such time(s) and in such manner and subject to such conditions as the Administrator shall in each instance determine, which need not be the same for each Award or for each Participant. 

  

	 	(c)	Transferability. Except as provided in this Section 7, the Shares of Restricted Stock granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated
or hypothecated until the end of the applicable Period of Restriction established by the Administrator and specified in the applicable Award Agreement, or upon earlier satisfaction of any other conditions, as specified by the Administrator in its
sole discretion and set forth in the Award Agreement. All rights with respect to the Restricted Stock granted to a Participant under the Plan shall be available during his or her lifetime only to such Participant, or in the event of the
Participant’s legal incapacity, to the Participant’s legal guardian or representative. 

  

	 	(d)	Other Restrictions. The Administrator shall impose such other conditions and/or restrictions on any Shares of Restricted Stock granted pursuant to the Plan as it may deem
advisable and as set forth in an Award Agreement including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock, time-based and/or performance-based restrictions on vesting, if
applicable, covenants of the Participants to comply with the provisions of the Company Charter that by their terms are applicable to holders of shares of any class or series of capital stock of the Company as a condition to acquiring and holding
title to or a beneficial interest in such shares, and/or restrictions under applicable Federal or state securities laws. 

  

	 	(e)	 Certificates. The Company or its designee shall retain the certificates representing Shares of Restricted Stock in the Company’s possession until

  

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such time as all conditions and/or restrictions applicable to such Shares have been satisfied. 

  

	 	(f)	Last Day of Period of Restriction. Except as otherwise provided in this Section 7 or an Award Agreement, Shares of Restricted Stock covered by each Restricted Stock grant
made under the Plan shall become freely transferable by the Participant after the last day of the applicable Period of Restriction. 

  

	 	(g)	Voting Rights. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those
Shares. 

  

	 	(h)	Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may be credited with regular cash
dividends, if any, paid with respect to the underlying Shares while they are so held. The Administrator may apply any restrictions to the dividends that the Administrator deems appropriate. 

  

	 	(i)	Termination of Employment or Relationship with the Company. Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain unvested
Restricted Shares following termination of the Participant’s employment or consulting relationship with the Company or any Subsidiary thereof or the termination of the Participant’s status as a director of the Company. Such provisions
shall be determined in the sole discretion of the Administrator, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Shares of Restricted Stock issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of the Participant’s employment or consulting relationship with the Company or any Subsidiary thereof or the termination of the Participant’s status as a director of the Company.

  
 8. Restricted Share Units. 
  

	 	(a)	Grant of Restricted Share Units. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Awards of Restricted Share
Units to Participants in such amounts as the Administrator shall determine. 

  

	 	(b)	 Restricted Share Unit Agreement. Each Award applicable to Restricted Share Units shall be evidenced by an Award Agreement that shall specify the
restrictions, including restrictions creating a substantial risk of forfeiture, the Period(s) of Restriction, the number of Restricted Share Units, and such other provisions as the Administrator shall determine. Restrictions on Restricted Share
Units shall lapse or the Restricted Share Units shall vest at such time(s) and in such manner and subject to such 

  

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conditions as the Administrator shall in each instance determine, which need not be the same for each Award or for each Participant.

  

	 	(c)	Transferability. Except as provided in this Section 8, the Restricted Share Units granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated. All rights with respect to the Restricted Share Units granted to a Participant under the Plan shall be available during his or her lifetime only to such Participant, or in the event of the Participant’s legal incapacity, to the
Participant’s legal guardian or representative. 

  

	 	(d)	Other Restrictions. The Administrator shall impose such other conditions and/or restrictions on any Restricted Share Units granted pursuant to the Plan as it may deem
advisable and as set forth in an Award Agreement including, without limitation, a requirement that Participants pay a stipulated purchase price for each Restricted Share Unit, time-based and/or performance-based restrictions on vesting, if
applicable, covenants of the Participants to comply with the provisions of the Company Charter that by their terms are applicable to holders of shares of any class or series of capital stock of the Company as a condition to acquiring and holding
title to or a beneficial interest in such shares, and/or restrictions under applicable Federal or state securities laws. 

  

	 	(e)	Rights as a Stockholder. Until the Restricted Share Units have vested (the Period of Restriction has lapsed) and Shares are issued in connection with the Restriction Share
Units, the Participant shall have no rights as a stockholder of the Company (including, but not limited to, voting or dividend rights). 

  

	 	(f)	Last Day of Period of Restriction. Except as otherwise provided in this Section 8 or an Award Agreement, Shares issued in connection with Restricted Share Units granted under
the Plan shall become freely transferable by the Participant after the last day of the applicable Period of Restriction. 

  

	 	(g)	 Termination of Employment or Relationship with the Company. Each Award Agreement shall set forth the extent to which the Participant shall have the right to
retain unvested Restricted Share Units following termination of the Participant’s employment or consulting relationship with the Company or any Subsidiary thereof or the termination of the Participant’s status as a director of the Company.
Such provisions shall be determined in the sole discretion of the Administrator, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Restricted Share Units issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination of the Participant’s employment or consulting relationship with the Company or 

  

 -13- 

	 	 
any Subsidiary thereof or the termination of the Participant’s status as a director of the Company. 

  
 9. Going Private Transaction. Notwithstanding any provision of the
Plan to the contrary, unless otherwise determined by the Administrator, in its sole discretion or as otherwise set forth in an Award Agreement, if there should be a Going Private Transaction (as defined below), the Company shall give each
Participant written notice of such Going Private Transaction as promptly as practicable prior to the effective date thereof and (i) any unvested Awards as of the date of the Going Private Transaction shall become vested and immediately exercisable
as of the effective date of such Going Private Transaction and (ii) the Administrator may determine, in its sole discretion, the treatment of any Awards which are exercisable or vested at the time of the Going Private Transaction or become
exercisable or vested pursuant to this Section 9. 
  
 For purposes
of the Plan, a “Going Private Transaction” means any transaction or series of transactions which (a) causes any class of equity securities of the Company which is subject to Section 12(g) or Section 15(d) of the Exchange Act, to be held of
record by less than 300 persons; or (b) causes any class of equity securities of the Company which is either listed on a national securities exchange or authorized to be quoted in an inter-dealer quotation system of a registered national securities
association to be neither listed on any national securities exchange nor authorized to be quoted on an inter-dealer quotation system of a registered national securities association. 
  
 10. Citizenship Restriction. If the Participant is not a citizen of the United States by birth, naturalization or as
otherwise authorized by applicable law, and if, in the reasonable determination of the Administrator, the Participant’s purchase of shares of Common Stock upon the exercise of any Option on the closing date for such exercise would result in
beneficial ownership (as defined below) by Non-U.S. Citizens (as defined below) of shares of such class of capital stock of the Company in the aggregate in excess of the Permitted Percentage (as defined below) for such class, then, unless otherwise
specified in the applicable Award Agreement for such Option, the Administrator, upon written notice to the Participant, may, in its sole discretion, elect that (a) all or a portion of such Option, as determined by the Administrator in its sole
discretion, shall be deemed not to have been exercised with respect to the shares of Common Stock to be purchased on such closing date and (b) the Participant’s right to exercise such Option, in whole or in part (as determined by the
Administrator), shall be suspended until the first date, during the remaining term of such Option, on which the Participant’s purchase of shares of Common Stock upon such exercise of such Option would not result in beneficial ownership by
Non-U.S. Citizens of shares of such class of capital stock of the Company in the aggregate in excess of the Permitted Percentage for such class. For purposes of this Section 10, the terms “beneficial ownership,” “Non-U.S.
Citizen,” and “Permitted Percentage” shall have the meanings ascribed to them in the Company’s certificate of incorporation, as in effect from time to time. 
  
 11. Adjustments in Event of Change in Common Stock. In the event of any change in the Common Stock by reason of any
Stock dividend, recapitalization, reorganization, merger, consolidation, split-up, combination or exchange of Shares, or of any similar change affecting the Common Stock, the number and kind of Shares which thereafter may be optioned and sold under
the Plan and the number and kind of Shares subject to Award in outstanding 

  

 -14- 

 
Award Agreements and the purchase price per share thereof, if any, may be appropriately adjusted consistent with such change in such manner as the Board may
deem equitable to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan. Without limiting the generality of the foregoing, if the Common Stock is recapitalized into multiple classes of
Common Stock, the kind of Shares subject to Award shall be those common Shares intended for broad general ownership rather than any class of special super-voting or other control stock. 
  
 12. Plan and Awards Not to Confer Rights with Respect to Continuance of Employment or Relationship. Neither the Plan
nor any action taken thereunder shall be construed as giving any Participant any right to continue such Participant’s relationship with the Company or a Subsidiary thereof, nor shall it give any employee the right to be retained in the employ
of the Company or a Subsidiary thereof, or interfere in any way with the right of the Company or a Subsidiary thereof to terminate any Participant’s employment or relationship, as the case may be, at any time with or without Cause.

  
 13. No Claim or Right Under the Plan. No employee or
consultant of the Company or any of its Subsidiaries, and no non-employee director of the Company, shall at any time have the right to be selected as a Participant in the Plan nor, having been selected as a Participant and granted an Award, to be
granted any additional Award. 
  
 14. Listing and Qualification
of Shares. The Plan, the grant and exercise of Awards thereunder, and the obligation of the Company to sell and deliver Shares under such Awards, shall be subject to all applicable Federal or state laws, rules and regulations and to such
approvals by any government or regulatory agency as may be required. The Company, in its discretion, may postpone the issuance or delivery of Shares upon any exercise of an Award until completion of any stock exchange listing, or other qualification
of such Shares under any state or Federal law, rule or regulation as the Company may consider appropriate, and may require any Award holder to make such representations and furnish such information as it may consider appropriate in connection with
the issuance or delivery of the Shares in compliance with applicable laws, rules and regulations. Certificates representing Shares acquired by the exercise of an Award may bear such legend as the Company may consider appropriate under the
circumstances. 
  
 15. Taxes. The Company may make such
provisions and take such steps as it may deem necessary or appropriate for the withholding of all federal, state, local and other taxes required by law to be withheld with respect to Awards under the Plan including, but not limited to (a) reducing
the number of Shares otherwise deliverable, based upon their Fair Market Value on the date of exercise, to permit deduction of the amount of any such withholding taxes from the amount otherwise payable under the Plan, (b) deducting the amount of any
such withholding taxes from any other amount then or thereafter payable to a Participant, or (c) requiring a Participant, beneficiary or legal representative to pay to the Company the amount required to be withheld or to execute such documents as
the Company deems necessary or desirable to enable it to satisfy its withholding obligations as a condition of releasing the Share. 
  
 16. No Liability of Administrator. No member of the Administrator shall be personally liable by reason of any contract or other instrument executed
by such member or on 

  

 -15- 

 
his or her behalf in his or her capacity as a member of the Administrator nor for any mistake of judgment made in good faith or actions taken by such person
as a member of the Administrator in good faith, and the Company shall indemnify and hold harmless each employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be
allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising out of any act or omission to act in connection with the Plan unless
such act arises out of the member’s own fraud or bad faith. 
  
 17. Amendment or Termination. The Administrator may, with prospective or retroactive effect, amend, suspend or terminate the Plan or any portion thereof at any time and for any reason; provided, however, that no
amendment or other action that requires stockholder approval in order for the Plan to continue to comply with any applicable law, rule or regulation shall be effective unless such amendment or other action shall be approved by the requisite vote of
stockholders of the Company entitled to vote thereon and no repricing of outstanding Awards under the Plan shall occur without stockholder approval. The Plan and all compensation derived therefrom are intended not to constitute compensation deferred
under a nonqualified deferred compensation plan as contemplated in Section 409A of the Code. Accordingly, notwithstanding any other provision of the Plan, the provisions of the Plan will be interpreted consistent with the preceding sentence, and the
Administrator may modify the Plan to the extent it deems advisable to prevent the application of Section 409A of the Code. 
  
 18. Compliance with Section 162(m) of the Code. At all times when Section 162(m) of the Code is applicable, all Awards granted under the Plan shall
comply with the requirements of Section 162(m) of the Code; provided, however, that in the event the Administrator determines that such compliance is not desired with respect to any Award of Restricted Stock or Restricted Share Units,
compliance with Section 162(m) of the Code will not be required for such Award. In addition, in the event that changes are made to Section 162(m) of the Code to permit greater flexibility with respect to any Award or Awards available under the Plan,
the Administrator may, subject to Section 17, make any adjustments it deems appropriate. 
  
 19. Captions. The captions preceding the sections of the Plan have been inserted solely as a matter of convenience and shall not in any manner define or limit the scope or intent of any provision of the Plan.

  
 20. Governing Law. The Plan and all rights thereunder
shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. 
  
 21. Severability. In the event that any provision of the Plan shall be held illegal or invalid for any reason, such
illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
  
 22. Effective Date. The Plan shall become effective upon the consummation of the issuance and sale by the Company in
a public offering of shares of the Company’s Common Stock pursuant to the Company’s Registration Statement on Form S-1, as amended, filed with the Securities and Exchange Commission. 
  

 -16-Horizon Lines, Inc., Employee Stock Purchase Plan

 Exhibit 10.46 
  
 HORIZON LINES, INC. 
 EMPLOYEE STOCK PURCHASE PLAN 
  
 The following constitute the provisions of the Horizon Lines, Inc. Employee Stock Purchase Plan (the “Plan”) of Horizon Lines, Inc. (the “Company”). 
  
 1. Purpose. The purpose of the Plan is to provide employees of the
Company and its Subsidiaries with an opportunity to purchase shares of Common Stock of the Company through payroll deductions. It is the intention of the Company to have the Plan qualify as an “employee stock purchase plan” under Section
423 of the Internal Revenue Code of 1986, as amended (the “Code”). The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the
Code. 
  
 2. Definitions. 
  
 (a) “Account” shall mean the account established
for each Participant under the Plan. 
  
 (b)
“Base Salary” shall mean an Employee’s salary or wages, tips and overtime for each pay period during any Purchase Period as determined from the payroll records of the Company; provided, however, that the Committee may,
in its discretion, limit the amount of a Participant’s Base Salary that may be considered under the Plan. 
  
 (c) “Beginning Date” shall mean the first business day of each Purchase Period. 
  
 (d) “Beneficial Ownership” shall have the meaning
ascribed to such term in the Company Charter. 
  
 (e) “Board” shall mean the Board of Directors of the Company. 
  
 (f) “Broker” shall mean the brokerage firm selected and designated by the Company or the Committee in the event that the shares
of Common Stock made available for sale under, or sold pursuant to, the Plan are registered under the Securities Act pursuant to an effective registration statement. 
  
 (g) “Closing Date” shall mean the last business day of each Purchase Period. 
  
 (h) “Code” shall mean the Internal Revenue Code of
1986, as amended. 
  
 (i) “Committee”
shall mean the Compensation Committee of the Board. 

 (j) “Common Stock” shall mean the Class A Common Stock of the Company par value
$.01 per share. 
  
 (k) “Company” shall
mean Horizon Lines, Inc., a Delaware corporation. 
  
 (l) “Company Charter” means the certificate of incorporation of the Company, as the same exists or may hereafter be amended or otherwise supplemented from time to time and including any certificates of designation filed with the
Secretary of State of the State of Delaware from time to time in accordance with the terms thereof. 
  
 (m) “Employee” shall mean any person who is customarily employed for more than twenty (20) hours per week by the Company or a
Subsidiary, including, to the extent permitted by the Committee, senior officers of the Company, and who is identified by the Company or a Subsidiary as an employee for Internal Revenue Service purposes. 
  
 (n) “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended. 
  
 (o)
“Fair Market Value” shall mean, on any day, with respect to shares of Common Stock which are (i) listed on a United States securities exchange, the last sales price of such stock on such day on the largest United States securities exchange
on which such stock shall have traded on such day, or if such day is not a day on which a United States securities exchange is open for trading, on the immediately preceding day on which such securities exchange was open, (ii) not listed on a United
States securities exchange but are included in The NASDAQ Stock Market System (including The NASDAQ National Market), the last sales price on such system of such stock on such day, or if such day is not a trading day, on the immediately preceding
trading day, or (iii) neither listed on a United States securities exchange nor included in The NASDAQ Stock Market System, the fair market value of such stock as determined by the Board, in its sole discretion. 
  
 (p) “Non-U.S. Citizen” shall have the meaning
ascribed to such term in the Company Charter. 
  
 (q) “Option” shall mean the right of a Participant to purchase shares of Common Stock of the Company under the Plan. 
  
 (r) “Participant” shall mean an Employee of the Company or a Subsidiary who is enrolled in the Plan in accordance with Section 3
hereof. 
  
 (s) “Permitted Percentage”
shall have the meaning ascribed to such term in the Company Charter. 
  
 (t) “Person” shall mean any individual, partnership, firm, trust, corporation, limited liability company or other similar entity. When two or more Persons act as a partnership, limited partnership, syndicate
or other group for the purpose of acquiring, holding or disposing of shares of Common Stock, such partnership, limited partnership, syndicate or group shall be deemed a “Person.” 
  

 - 2 - 

 (u) “Plan” shall mean the Horizon Lines, Inc. Employee Stock Purchase Plan.

  
 (v) “Purchase Period” shall mean
each three (3) month period when Options for shares of Common Stock are sold by the Company. 
  
 (w) “Securities Act” shall mean the Securities Act of 1933, as amended. 
  
 (x) “Subsidiary” shall mean any Person more than
50% of the outstanding voting or equity securities of which, or any partnership, joint venture or other entity more than 50% of the total equity or other economic interest of which, is directly or indirectly owned by the Company. 
  
 3. Eligibility. 
  
 (a) As soon as administratively possible, any Employee who
shall be employed by the Company or one of its Subsidiaries shall be eligible to participate in the Plan as of the date of the first Purchase Period following the Employee’s commencement of employment with the Company or a Subsidiary; provided
that (i) Employees who have been employed by the Company or a Subsidiary for less than two (2) years, (ii) Employees whose customary employment is twenty hours or less per week, (iii) Employees whose customary employment is not more than five (5)
months in any calendar year and (iv) “highly compensated employees” (as defined in Section 414(q) of the Code) may be excluded from participating in the Plan. 
  
 (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an Option under
the Plan (i) if, immediately after the grant, such Employee would own shares of Common Stock, whether restricted or otherwise, or hold outstanding options to purchase shares of Common Stock, possessing in the aggregate five percent (5%) or more of
the total combined voting power or value of all classes of shares of the Company or of any Subsidiary of the Company, or (ii) which causes him or her to purchase shares of Common Stock under all employee stock purchase plans of the Company and its
Subsidiaries which have a Fair Market Value which exceeds Twenty-Five Thousand Dollars ($25,000) (determined at the time such Option is granted) for each calendar year in which such Option is outstanding at any time. 
  
 4. Purchase Periods. The Plan shall be implemented by a series of four
Purchase Periods in each calendar year, commencing on the first day of each calendar quarter on which the Common Stock is traded on the New York Stock Exchange and ending on the last day of each calendar quarter on which the Common Stock is traded
on the New York Stock Exchange; provided that the first Purchase Period shall commence on the Effective Date and shall end at the completion of the calendar quarter in which the Effective Date occurs unless otherwise determined by the Committee.
Subsequent Purchase Periods shall run consecutively after the termination of the preceding Purchase Period until the Plan is terminated in accordance with Section 21 hereof. 
  
 The Committee shall have the power to change the duration of Purchase Periods with respect to future Purchase Periods
without stockholder approval if such change is 

  

 - 3 - 

 
announced at least fifteen (15) days prior to the scheduled beginning of the first Purchase Period to be affected. 
  
 5. Participation. An eligible Employee may become a Participant in the
Plan by authorizing payroll deductions in such form or manner as the Committee may prescribe prior to the applicable Beginning Date. Once authorized, such authorization for payroll deductions shall commence on the first Beginning Date after
authorization is effected and shall remain effective for all subsequent Purchase Periods in the calendar year in which the Participant commences participation unless the Participant withdraws from the Plan as provided in Section 11 hereof or,
subject to Section 6 hereof, authorizes a change in the amount of his or her payroll deductions. A Participant shall be required to confirm his or her payroll deduction authorization each calendar year in writing, in such form or manner as the
Committee may prescribe. 
  
 6. Payroll Deductions.

  
 (a) At the time a Participant authorizes
payroll deductions, he or she shall elect to have payroll deductions made from each paycheck during subsequent Purchase Periods at a rate equal to a percentage of Base Salary (such percentage representing a whole number percentage), within a
percentage range determined by the Committee from time to time and in its sole discretion. 
  
 (b) All payroll deductions made by a Participant shall be credited to his or her Account under the Plan. A Participant may not make any
additional payments into such Account. 
  
 (c) A
Participant may increase or decrease his or her rate of payroll deductions (within the limitations set forth in Section 6(a) hereof) to be effective for the next Purchase Period by authorizing in writing a new rate of payroll deductions at least
fifteen (15) days before the beginning of such Purchase Period. A Participant may not increase or decrease the rate of payroll deductions during a Purchase Period to be effective for that Purchase Period. 
  
 (d) A Participant must continue payroll deductions for the
duration of the Purchase Period in order to exercise an Option in accordance with Section 8 hereof. In the event that a Participant does not continue payroll deductions for the entire Purchase Period, such Participant shall be treated as withdrawing
from such Purchase Period in accordance with Section 11(a) hereof. 
  
 7. Grant of Option. 
  
 (a) On
each Beginning Date, each eligible Employee participating in the Plan shall be granted an Option to purchase (at the per share Option price) up to a number of shares of the Company’s Common Stock determined by dividing the Employee’s
to-be-accumulated payroll deductions for the applicable Purchase Period (not to exceed an amount equal to fifteen percent (15%) of his or her Base Salary, or such lesser percentage of Base Salary as determined by the Committee, during the applicable
Purchase Period) by the Option price, as determined in accordance with Section 7(b). 
  

 - 4 - 

 (b) The Option price per share of such shares of Common Stock for a Purchase Period shall
be shall be the lesser of (i) a percentage, as determined by the Committee (the “Percentage”), of the Fair Market Value of a share of Common Stock of the Company on the Beginning Date of such Purchase Period or (ii) the Percentage of the
Fair Market Value of a share of Common Stock of the Company on the Closing Date of such Purchase Period; provided that the Percentage shall not be less than 85%. 
  
 8. Exercise of Option. 
  
 (a) Subject to the provisions of Section 8(b) hereof, unless a Participant withdraws from the Plan as provided in Section 11 hereof, his
or her Option for the purchase of shares of Common Stock will be exercised automatically on the Closing Date, and the maximum number of whole shares of Common Stock subject to the Option will be purchased for him or her at the applicable Option
price with the accumulated payroll deductions in his or her Account. All of the unused payroll deductions credited to a Participant’s Account, after giving effect to the payment of the aggregate Option price for the shares of the Company’s
Common Stock purchased by the Participant upon the exercise of his or her Option (as adjusted pursuant to Section 8(b) below) or the termination of his or her Option in its entirety pursuant to Section 8(b) below, shall be returned to the
Participant. During his or her lifetime, a Participant’s Option to purchase shares of Common Stock hereunder is exercisable only by him or her. 
  
 (b) If a Participant is not a citizen of the United States by birth, naturalization or as otherwise authorized by applicable law, and if,
in the reasonable determination of the Committee, such Participant’s purchase of shares of Common Stock upon the automatic exercise of his or her Option on a Closing Date would result in Beneficial Ownership by Non-U.S. Citizens of shares of
such class of capital stock of the Company in the aggregate in excess of the Permitted Percentage for such class, then the Committee, upon written notice to the Participant, may, in its sole discretion, elect that all or a portion of such Option, as
determined by the Committee in its sole discretion, shall be deemed not to have been exercised on such Closing Date and shall be permanently terminated (and such Participant shall have no further rights with respect thereto). 
  
 9. Broker and Participant’s Account with Broker. The Broker is
authorized to open and maintain an Account for each Participant. The Company reserves the right to change the designation of the Broker at any time without prior notice to Participants. The Broker shall deliver to each Participant as promptly as
practicable, by mail or otherwise, all notices of meetings, proxy statements and other materials distributed by the Company to its stockholders. The whole shares in each Participant’s Account shall be voted in accordance with the
Participant’s signed proxy instructions duly delivered to the Broker by mail or otherwise, in accordance with the rules applicable to stock listed on the New York Stock Exchange. 
  
 10. Delivery of Certificates. A Participant may request, in accordance with Section 22 hereof, that the Company
arrange for the delivery of a certificate representing the number of whole shares of Common Stock of the Company purchased upon exercise of the Participant’s Option as promptly as practicable after each Closing Date. In connection with the
delivery of certificates to a Participant, the Committee may, in its sole discretion, impose a reasonable charge. 
  

 - 5 - 

 11. Withdrawal; Termination of Employment. 
  
 (a) A Participant may withdraw all but not less than all the
unused payroll deductions credited to his or her Account under the Plan during the course of a given Purchase Period at any time prior to the Closing Date of that Purchase Period by giving notice to the Committee in such form or manner as the
Committee may prescribe. All of the Participant’s unused payroll deductions credited to his or her Account will be paid to him or her as soon as administratively possible after receipt of his or her written notice of withdrawal and his or her
Option for the current Purchase Period will be automatically terminated, and no further payroll deductions for the purchase of shares of Common Stock will be made during such Purchase Period. 
  
 (b) Upon termination of the Participant’s employment
prior to the Closing Date for any reason, including retirement or death, the payroll deductions credited to his or her Account will be returned to him or her or, in the case of his or her death, to the person or persons entitled thereto under
Section 16 hereof, as soon as administratively possible, and his or her Option will be automatically terminated. 
  
 (c) In the event an Employee fails to remain in the continuous employ of the Company or one of its Subsidiaries for at least twenty (20)
hours per week during the Purchase Period in which the employee is a Participant, he or she will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to his or her Account will be returned to him or her as soon as
administratively possible and his or her Option will be terminated. 
  
 (d) A Participant’s withdrawal from a Purchase Period will not have any effect upon his or her eligibility to participate in a succeeding Purchase Period or in any similar plan which may hereafter be adopted by
the Company. However, in such a case, the Participant must authorize the resumption of payroll deductions and the rate of such payroll deductions. 
  
 12. No Interest. No interest shall accrue on the payroll deductions held in the Account of a Participant in the Plan. 
  
 13. Stock. 
  
 (a) The maximum number of shares of Common Stock which shall
be made available for sale under the Plan shall be
[                                        ]
shares of Common Stock, subject to adjustment upon changes in capitalization of the Company as provided in Section 20 hereof. The shares of Common Stock to be sold to Participants under the Plan may, at the election of the Company, be either
treasury shares, authorized but unissued shares or publicly traded shares. If at the termination of any Purchase Period the total number of shares of Common Stock which would otherwise be subject to Options granted pursuant to Section 7(a) hereof
exceeds the number of shares of Common Stock then available under the Plan (after deduction of all shares of Common Stock for which Options have been exercised or are then outstanding), the Company shall promptly notify the Participants, and shall,
in its sole discretion (i) make a pro rata allocation of the shares of Common Stock remaining available for Option 

  

 - 6 - 

 
grant in as uniform a manner as shall be practicable and as it shall determine to be equitable, (ii) terminate the Purchase Period without issuance of any
shares of Common Stock or (iii) obtain stockholder approval for an increase in the number of shares of Common Stock authorized under the Plan such that all Options could be exercised in full. The Company may delay determining which of (i), (ii) or
(iii) above it shall decide to effect, and may accordingly delay issuances of any shares of Common Stock under the Plan for such time as may be necessary to attempt to obtain stockholder approval for any increase in shares of Common Stock authorized
under the Plan. The Company shall promptly notify Participants of its determination to effect (i), (ii) or (iii) above upon making such decision. A Participant may withdraw all but not less than all the payroll deductions credited to his or her
Account under the Plan at any time prior to such notification from the Company. In the event the Company determines to effect (i) or (ii) above, it shall promptly upon such determination return to each Participant all payroll deductions not applied
towards the purchase of shares of Common Stock. 
  
 (b) The Participant will have no interest or voting right in shares of Common Stock covered by his or her Option until such Option has been exercised. 
  

(c) Shares of Common Stock to be delivered to a Participant under the Plan shall be registered in the name of the Participant.

  
 14. Dividends. Cash dividends for shares of Common
Stock in Participants’ Accounts under the Plan shall, as determined by the Committee in its discretion, either be distributed to Participants directly or automatically invested in shares of Common Stock at the full Fair Market Value on the date
of such investment as soon as administratively possible after such dividends are paid by the Company. In the event cash dividends are automatically invested in shares of Common Stock, such shares of Common Stock will be held in Accounts under the
Plan. 
  
 15. Administration. The Plan shall be
administered by the Committee; provided, however, that the day to day responsibilities with respect to the administration of the Plan may be delegated to the Company or any officer of the Company, as determined by the Committee. The
administration, interpretation or application of the Plan by the Committee, or such other person or persons who have been delegated the responsibility to administer the Plan, shall be final, conclusive and binding upon all Participants. 

 
 16. Designation of Beneficiary. The Participant shall designate in
writing the beneficiary or beneficiaries of the Participant to receive any shares of Common Stock and cash, if any, from the Participant’s Account under the Plan in the event of such Participant’s death prior to delivery to him or her of
such shares of Common Stock and cash. In the absence of a valid designation or if no validly designated beneficiary survives the Participant or if each surviving validly designated beneficiary is legally impaired or prohibited from receiving shares
of Common Stock and cash, if any, from the Participant’s Account under the Plan, then the Participant’s beneficiary shall be the Participant’s estate. 
  
 17. Transferability. Neither payroll deductions credited to a Participant’s Account nor any rights with regard
to the exercise of an Option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way 

  

 - 7 - 

 
(other than by will, the laws of descent and distribution or as provided in Section 16 hereof) by the Participant. Any such attempt at assignment, transfer,
pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 11 hereof. 
  
 18. No Segregation of Funds. The Company shall not be obligated to segregate payroll deductions received or held by
the Company under the Plan. Such payroll deductions shall be used to purchase shares of Common Stock under the Plan in accordance with Section 8 hereof. 
  
 19. Reports. Individual Accounts will be maintained for each Participant in the Plan. Statements of Account will be given to Participants within a
reasonable period of time following each Closing Date. 
  
 20.
Adjustments Upon Changes in Capitalization. In the event of any change in the Common Stock by reason of any stock dividend, recapitalization, reorganization, merger, consolidation, split-up, combination or exchange of shares of Common Stock,
or of any similar change affecting the Common Stock, the number and kind of shares of Common Stock which thereafter may be optioned and sold under the Plan may be appropriately adjusted consistent with such change in such manner as the Board may
deem equitable to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan. Without limiting the generality of the foregoing, if the Common Stock is recapitalized into multiple classes of
Common Stock, the kind of shares subject to the Plan Award shall be those common shares intended for broad general ownership rather than any class of special super-voting or other control stock. 
  
 21. Amendment and Termination of the Plan. 
  
 (a) Amendment and Termination. The Committee may at
any time amend, alter, suspend or discontinue the Plan, but no amendment, alteration, suspension or discontinuation shall be made which would impair the rights of any Participant under any Option theretofore granted without his or her consent.

  
 (b) Stockholder Approval of
Amendments. The Company shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Rule 16b-3 promulgated under the Exchange Act or with Section 423 of the Code (or any successor statute or rule
or other applicable law, rule or regulation), such stockholder approval to be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation. 
  
 (c) Contemplated Amendments. It is expressly contemplated that the Committee may amend the Plan in
any respect that the Committee deems necessary or advisable in the event the financial accounting treatment with respect to the Plan changes from the financial accounting treatment in effect on the date the Plan is adopted by the Board. 

 
 (d) Effect of Amendment or Termination. Any such
amendment or termination of the Plan shall not affect Options already granted hereunder and such Options shall remain in full force and effect as if this Plan had not been amended or terminated. 
  

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 (e) Section 409A of the Code. The Plan and all compensation derived therefrom are
intended not to constitute compensation deferred under a nonqualified deferred compensation plan as contemplated in Section 409A of the Code. Accordingly, notwithstanding any other provision of the Plan, the provisions of the Plan will be
interpreted consistent with the preceding sentence, and the Committee may modify the Plan to the extent it deems advisable to prevent the application of Section 409A of the Code. 
  
 22. Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan
shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. All notices or other communications to a Participant by the Company
shall be deemed to have been duly given when sent by the Company by regular mail to the address of the Participant on the human resources records of the Company. 
  
 23. Conditions Upon Issuance of Shares of Common Stock. Shares of Common Stock shall not be issued with respect to an
Option unless the exercise of such Option and the issuance and delivery of such shares of Common Stock pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the
Exchange Act, and the rules and regulations promulgated thereunder, and the requirements of any stock exchange or automated quotation system upon which the shares of Common Stock may then be listed or quoted as the Committee or the Board may
determine, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to (i) represent and warrant at the
time of any such exercise that the shares of Common Stock are being purchased only for investment and without any present intention to sell or distribute such shares of Common Stock if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned applicable provisions of law, and (ii) covenant to comply with the provisions of the Company Charter that by their terms are applicable to holders of shares of any class or series of capital
stock of the Company as a condition to acquiring and holding title to or a beneficial interest in such shares. 
  
 24. No Contract of Employment. The Plan is not and shall not be deemed to constitute a contract of employment between the Company and any Employee
or other individual, nor shall anything herein contained be deemed to give any Employee or other individual any right to be retained in the Company’s employ or to in any way limit or restrict the Company’s right or power to discharge any
Employee or other individual at any time and to treat him without any regard to the effect which such treatment might have upon him as a Participant of the Plan. 
  
 25. Governing Law. The Plan shall be construed in accordance with and governed by the laws of the State of New York.

  
 26. Effective Date and Approval of Plan by
Stockholders. The Plan shall become effective on a date (if any) specified by the Committee, subject however, to receipt of approval of the Plan by stockholders of the Company in accordance with Section 423 of the Code. 

 

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