Document:

exv10w1

Exhibit 10.1

FIRST AMENDMENT

TO FOURTH AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

     This First Amendment to Fourth Amended and Restated Revolving Loan Agreement (this
“Amendment”) is entered into as of September 30, 2009, by and between ViaSat, Inc., a Delaware
corporation (“Borrower”), each lender from time to time party to the Credit Agreement (as defined
below) (collectively, the “Lenders” and individually, a “Lender”), UNION BANK, N.A., as
Administrative Agent (in such capacity, “Administrative Agent”), BANK OF AMERICA, N.A., as
Syndication Agent, JPMORGAN CHASE BANK, N.A., as Documentation Agent, BANC OF AMERICA SECURITIES
LLC and UNION BANK, N.A., as Joint Lead Arrangers and Joint Book Runners and UNION BANK, N.A., as
Collateral Agent (in such capacity, “Collateral Agent;” collectively, the “Agents”).

RECITALS

     Borrower, Agents and the Lenders are parties to that certain Fourth Amended and Restated
Revolving Loan Agreement dated as of July 1, 2009 (as amended from time to time, the “Credit
Agreement”). The parties desire to amend the Credit Agreement in accordance with the terms of this
Amendment. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as
defined in the Credit Agreement.

     NOW, THEREFORE, the parties agree as follows:

     1. The following defined terms hereby are added, amended and or restated in Section 1.1 of the
Credit Agreement to read as follows:

          “Addendum to Credit Agreement” means that certain Addendum to Fourth Amended and
Restated Revolving Loan Agreement attached hereto as Annex II.

          “Additional Covenant” means any affirmative or negative covenant or similar
restriction applicable to the Borrower or any Subsidiary (regardless of whether such provision is
labeled or otherwise characterized as a covenant) the subject matter of which either (i) is similar
to that of any covenant in Section 5 or 6 of this Agreement, or related definitions in Section 1 of
this Agreement, but contains one or more percentages, amounts or formulas that is more restrictive
than those set forth herein or more beneficial to the lenders under the Second Lien Loan Agreement
(and such covenant or similar restriction shall be deemed an Additional Covenant only to the extent
that it is more restrictive or more beneficial) or (ii) is different from the subject matter of any
covenant in Section 5 or 6 of this Agreement, or related definitions in Section 1 of this
Agreement.

          “Additional Default” means any provision contained in the Second Lien Loan Agreement
which permits the lenders thereunder, or the Collateral Agent or the Administrative Agent
thereunder (and as defined therein), to accelerate (with the passage of time or giving of notice or
both) the maturity thereof or otherwise requires the Borrower or any Subsidiary to purchase the
Indebtedness under the Second Lien Loan Agreement prior to the stated maturity thereof and which
either (i) is similar to any Default or Event of Default contained in Section 9 of this Agreement,
or related definitions in Section 1 of this Agreement, but contains one or more percentages,
amounts or formulas that is more restrictive or has a shorter grace period than those set forth
herein or is more beneficial to the lenders under the Second Lien Loan Agreement (and such
provision shall be deemed an Additional Default only to the extent that it is more restrictive, has
a shorter grace period or is more beneficial) or (ii) is different from the subject matter of any
Default or Event of Default contained in Section 9 of this Agreement, or related definitions in
Section 1 of this Agreement.

          “EchoBlue” means EchoBlue Rural Broadband, LLC, a joint venture between WildBlue and
EchoStar Broadband II L.L.C., in which WildBlue owns a fifty percent (50%) interest.

          “First Amendment Date” means September 30, 2009.

1

 

          “Intercreditor Agreement” means that certain Intercreditor Agreement among the
Collateral Agent, the Second Lien Agent and the Borrower, dated on or about the closing of the
WildBlue Acquisition, substantially in the form attached hereto as Annex I (or otherwise in form
and content reasonably acceptable to the Requisite Lenders).

          “Outside Date” means September 22, 2010, provided that this date may be extended by
Borrower upon the prior written consent of the Requisite Lenders, not to be unreasonably withheld.

          “Permitted Additional Senior Indebtedness” means, collectively, (i) senior unsecured
or senior secured Indebtedness of the Borrower issued under an indenture under the Trust Indenture
Act of 1939; provided that, in the event such Indebtedness is secured, (a) the maturity date under
the indenture for such Indebtedness shall in no event occur before the Maturity Date hereunder, (b)
the indenture for such Indebtedness shall not contain any covenants that require Borrower to
maintain certain specified levels of earnings, leverage or similar financial tests (provided that
the foregoing shall not preclude such indenture from containing any such tests as a condition to
entering into and/or consummating certain transactions, such as the incurrence of other
indebtedness, making of investments or payments of dividends and other restricted payments;
provided the same are on market terms and conditions (as determined in the reasonable discretion of
the Requisite Lenders)), (c) such Indebtedness shall not be secured by more or different Collateral
than that securing the Obligations, nor guaranteed by more or different obligors than those
guaranteeing the Obligations, and any documents evidencing such security and/or such guaranties
shall be substantially the same as, and no more burdensome to the obligors than, the Security
Agreements covering the same Collateral and/or the Guaranties covering the Guaranty Obligations and
(d) the terms and conditions of such Indebtedness pursuant to any indenture or other agreement
executed in connection therewith shall not impose restrictions that prevent any obligor under the
Loan Documents from complying with the Loan Documents to which such obligor is a Party; (ii)
Indebtedness of the Subsidiary Guarantors under any Guaranty Obligations in respect thereof; and
(iii) any Permitted Refinancing Indebtedness in respect thereof; provided that (x) the principal
amount thereof does not exceed $300,000,000 in the aggregate at any time; and (y) the same shall
(to the extent secured) be subject to the terms and conditions of an intercreditor agreement on
substantially the terms and conditions of the Intercreditor Agreement (or terms no less favorable
to the Lenders than the terms and conditions of the Intercreditor Agreement, as determined in the
reasonable discretion of the Requisite Lenders).

          “Permitted Refinancing Indebtedness” shall mean Indebtedness issued or incurred to
refinance, refund, extend, renew or replace all or a portion of Permitted Senior Indebtedness
(“Refinanced Indebtedness”); provided that (i) the principal amount of such refinancing, refunding,
extending, renewing or replacing Indebtedness is not greater than the principal amount of such
Refinanced Indebtedness, (ii) such refinancing, refunding, extending, renewing or replacing
Indebtedness has a final maturity that is no earlier than such Refinanced Indebtedness, (iii) if
such Refinanced Indebtedness or any Guaranty Obligations thereof are subordinated to the
Obligations, such refinancing, refunding, extending, renewing or replacing Indebtedness and any
Guaranty Obligations thereof remain so subordinated on terms, when taken as a whole, no less
favorable to the Lenders, and (iv) to the extent such Indebtedness will be secured by the
Collateral, the relevant holders of such refinancing, refunding, extending, renewing or replacing
Indebtedness become party to the Intercreditor Agreement.

          “Permitted Senior Indebtedness” means, collectively, (i) Permitted Senior Secured
Indebtedness and (ii) Permitted Additional Senior Indebtedness; provided that the principal amount
thereof does not exceed $350,000,000 in the aggregate at any time.

          “Permitted Senior Secured Indebtedness” means, collectively, (i) Indebtedness of the
Borrower under the Second Lien Loan Agreement, (ii) Indebtedness of the Subsidiary Guarantors under
any Guaranty Obligations in respect thereof and (iii) any Permitted Refinancing Indebtedness in
respect thereof; provided that (x) the principal amount thereof does not exceed $350,000,000 in the
aggregate at any time; and (y) the same shall be subject to the terms and conditions of the
Intercreditor Agreement.

2

 

          “Second Lien Agent” means the entity that acts as collateral agent on behalf of the
lenders under the Second Lien Loan Agreement, in its capacity as such.

          “Second Lien Loan Agreement” means that certain Second Lien Loan Agreement among the
Second Lien Agent, the Borrower and the other lenders and financial institutions party thereto from
time to time, to become effective (if at all) on or about the date of the closing of the WildBlue
Acquisition; substantially in the form of Exhibit N attached hereto or otherwise in form and
content reasonably acceptable to the Requisite Lenders.

          “Second Lien Loan Documents” means the Second Lien Loan Agreement, together with all
Schedules and Exhibits thereto, and all documents or instruments to be executed or delivered in
connection therewith; all substantially in the form of the documents attached hereto as Exhibit N
or otherwise in form and content reasonably acceptable to the Requisite Lenders.

          “Senior Secured Leverage Ratio” means, as of any date of determination, the ratio of
(a) all secured Indebtedness of Borrower and its Subsidiaries on that date to (b) EBITDA for the
fiscal period consisting of the four (4) Fiscal Quarters ended on that date.

          “WB Canada” means WildBlue Communications Canada Corp., a Subsidiary of WildBlue
organized under the laws of Canada.

          “WildBlue” means WildBlue Holding, Inc., a Delaware corporation.

          “WildBlue Acquisition” means the Acquisition of WildBlue by Borrower or a Wholly-Owned
Subsidiary of Borrower, whether through the acquisition of capital stock or a merger with or into
WildBlue or a parent entity thereof; provided that WildBlue shall be a Wholly-Owned Subsidiary of
Borrower after giving effect to the WildBlue Acquisition.

          “WildBlue Acquisition Documents” means that certain Agreement and Plan of Merger by
and among Borrower, [Merger Sub] and WildBlue, dated as of September 30, 2009, together with all
Schedules and Exhibits thereto, and all documents or instruments to be executed or delivered in
connection therewith; all in substantially the form of Exhibit O hereto or otherwise on terms and
conditions reasonably acceptable to Agents and the Requisite Lenders.

          “WildBlue Companies” means WildBlue (and/or the surviving company of the merger of
WildBlue pursuant to the WildBlue Acquisition), its Subsidiaries and any other Person acquired in
connection with the WildBlue Acquisition pursuant to the WildBlue Acquisition Documents.

          1.1 Clause (iii)(a) of the defined term “Permitted Acquisition” hereby is amended and
restated in its entirety to read as follows:

               “(a) Borrower would have been in compliance with the financial covenants set forth in
Sections 6.13, 6.14 and 6.15 of this Agreement throughout the period of the
four (4) Fiscal Quarters most recently ended prior to the date of such Acquisition (or such shorter
period in which the target has been in existence) and.”

          1.2 The definition of the term “Permitted Encumbrances” hereby is amended by (i)
deleting the word “and” at the end of clause (s) thereof; (ii) deleting the period at the end of
clause (t) thereof and replacing it with “; and”; and (iii) inserting new clause (u) immediately
after clause (t), to read as follows:

               “(u) Liens securing Permitted Senior Indebtedness (to the extent secured); provided that (i)
in the case of Permitted Senior Secured Indebtedness, Borrower has (A) consummated the WildBlue
Acquisition, (B) by no later than the Outside Date; and (ii) such Liens are junior in priority to
the Liens securing the Obligations, pursuant to the terms and conditions of the Intercreditor
Agreement

3

 

(or an intercreditor agreement on substantially the terms and conditions of the Intercreditor
Agreement or otherwise on terms no less favorable to the Lenders than the terms and conditions of
the Intercreditor Agreement, as determined in the reasonable discretion of the Requisite Lenders).”

          1.3 The definition of the term “Subsidiary” hereby is amended by inserting the section
reference “6.15” between the references therein to sections “6.14” and
“7.1(a).”

     2. Section 2.8(a)(ii) of the Credit Agreement hereby is amended and restated in its entirety
to read as follows:

          “each individual request for an increase shall be in the minimum amount of $10,000,000.”

     3. The last sentence of Section 5.12 of the Credit Agreement hereby is amended and restated in
its entirety to read as follows:

          “Notwithstanding the foregoing or any other provision of this Agreement, (x) ViaSat Satellite
Ventures, LLC, ViaSat Credit and each of the ViaSat-1 Holding Companies shall each execute and
deliver to the Administrative Agent on the Closing Date a Subsidiary Guaranty, a Subsidiary
Security Agreement and a Subsidiary Pledge Agreement; and (y) neither WB Canada nor EchoBlue shall
be required to execute or deliver to the Administrative Agent a Subsidiary Guaranty, a Subsidiary
Security Agreement or a Subsidiary Pledge Agreement, unless and until each, respectively, becomes a
Significant Subsidiary.”

     4. New Section 5.13 hereby is added to the Credit Agreement to read as follows:

          “5.13 Additional Covenants and Additional Defaults Under Second Lien Loan Agreement.

               (a) If after the First Amendment Date the Borrower enters into any amendment to the Second
Lien Loan Agreement, which contains one or more Additional Covenants or Additional Defaults that
are not included in the Second Lien Loan Agreement attached hereto, the terms of this Agreement
shall, without any further action on the part of the Borrower or any of the Lenders or the
Administrative Agent, be deemed to be amended automatically to include (and give immediate effect
to) each such Additional Covenant and each such Additional Default contained in such amendment.

               (b) The Borrower, the Collateral Agent and the Requisite Lenders further covenant to promptly
execute and deliver, at the expense of the Borrower, an amendment to this Agreement in form and
substance reasonably satisfactory to the Requisite Lenders evidencing the amendment of this
Agreement (as contemplated by Section 5.13(a), above) to include such Additional Covenants
and Additional Defaults, provided that each party hereto hereby agrees that the execution
and delivery of such amendment shall not be a precondition to the effectiveness of such amendment
as provided for in this Section 5.13 but shall merely be for the convenience of the parties
hereto.

Notwithstanding the foregoing, any Additional Covenants and/or Additional Defaults added to this
Agreement pursuant to this Section 5.13 shall only become effective if and when any Loan
under (and as defined in) the Second Lien Credit Agreement (or any Permitted Refinancing
Indebtedness with respect thereto) remains outstanding and any commitment to lend thereunder
exists, and shall thereafter be deemed to be removed from this Agreement and of no further force or
effect.”

     5. Section 6.3(a) of the Credit Agreement hereby is amended by (i) inserting between the words
“other” and “and” the phrase “, (b) the WildBlue Acquisition” and (ii) deleting the signal “(b)”
therein (as in effect prior to the First Amendment Date) and replacing it with the signal “(c)”.

     6. Section 6.5 of the Credit Agreement hereby is amended and restated in its entirety to read
as follows:

4

 

          “6.5 Acquisitions. Make any Acquisition other than (a) a Permitted Acquisition and
(b) the WildBlue Acquisition (provided that Borrower has consummated the WildBlue Acquisition by no
later than the Outside Date); in each case, provided that no Default or Event of Default has
occurred prior to or would result after giving effect to such Acquisition.”

     7. Section 6.10 of the Credit Agreement is hereby amended by (i) deleting the word “and” at
the end of clause (i) thereof; (ii) deleting the period at the end of clause (j) thereof and
replacing it with “; and”; and (iii) inserting new clauses (k) and (l) immediately after clause
(j), to read as follows:

          “(k) Permitted Additional Senior Indebtedness; provided that Borrower shall apply one hundred
percent (100%) of the net proceeds of the Permitted Additional Senior Indebtedness permanently to
reduce the Permitted Senior Secured Indebtedness (if incurred); and

          (l) Permitted Senior Secured Indebtedness incurred in connection with the WildBlue
Acquisition; provided that Borrower has (i) consummated the WildBlue Acquisition (ii) by no later
than the Outside Date;

provided that the aggregate amount Permitted Additional Senior Indebtedness and Permitted Senior
Secured Indebtedness shall not exceed $350,000,000 at any time.”

     8. Section 6.12 of the Credit Agreement hereby is amended by adding the following language at
the beginning thereof: “Except as set forth in the documents implementing any Permitted Additional
Senior Indebtedness and in the Second Lien Loan Documents.”

     9. Section 6.13 of the Credit Agreement hereby is amended and restated in its entirety to read
as follows:

          “6.13 Leverage Ratio. Permit the Leverage Ratio at any time, measured quarterly, to
be greater than (x) prior to the incurrence of any Permitted Senior Indebtedness and in the event
Borrower does not incur any Permitted Senior Indebtedness by the Outside Date, 2.50 to 1.00; and
(y) at all other times, 3.50 to 1.00.”

     10. Section 6.14 of the Credit Agreement hereby is amended and restated in its entirety to
read as follows:

          “6.14 Interest Coverage Ratio. Permit the Interest Coverage Ratio at the end of each
Fiscal Quarter to be less than (x) prior to the incurrence of any Permitted Senior Indebtedness and
in the event Borrower does not incur any Permitted Senior Indebtedness by the Outside Date, 4.00 to
1.00; and (y) at all other times, 3.00 to 1.00.”

     11. Section 6.15 of the Credit Agreement hereby is amended and restated in its entirety to
read as follows:

          “Senior Secured Leverage Ratio. Permit the Senior Secured Leverage Ratio at any time,
measured quarterly, to be greater than (a) 2.50 to 1.00 from the date of incurrence of any
Permitted Senior Indebtedness through the day before the end of Borrower’s 2011 Fiscal Year; and
(b) 2.00 to 1.00 thereafter; provided that, in the event Borrower does not incur any Permitted
Senior Indebtedness by the Outside Date, Borrower shall not be required to comply with this
covenant, which shall be deemed to be null and void and of no force or effect.”

     12. Exhibit B to the Credit Agreement hereby is replaced in its entirety with Exhibit B
attached hereto.

     13. The Schedules to the Credit Agreement hereby are replaced in their entirety with the
Schedules attached hereto.

5

 

     14. [Reserved.]

     15. No course of dealing on the part of Lenders, Agents or their officers, nor any failure or
delay in the exercise of any right by any Agent or any Lender, shall operate as a waiver thereof,
and any single or partial exercise of any such right shall not preclude any later exercise of any
such right. Agents’ or Lenders’ failure at any time to require strict performance by Borrower of
any provision of any Loan Document shall not affect any right of Lenders or Agents thereafter to
demand strict compliance and performance. Any suspension or waiver of a right must be in writing
signed by an officer of Administrative Agent, in accordance with the terms of the Credit Agreement.

     16. The Credit Agreement, as amended hereby, shall be and remain in full force and effect in
accordance with its respective terms and hereby is ratified and confirmed in all respects. Except
as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not
operate as a waiver of, or as an amendment of, any right, power, or remedy of Agents or Lenders
under the Credit Agreement, as in effect prior to the date hereof.

     17. All Representations and Warranties contained in the Credit Agreement or in any other
document or documents relating thereto shall survive the execution and delivery of this Amendment.
The Borrower is not aware of any events which now constitute, or with the passage of time or the
giving of notice, or both, would constitute, an Event of Default under the Credit Agreement.

     18. Borrower shall deliver to Administrative Agent, as and when entered into (if at all), the
following:

               (a) fully executed copies of the Second Lien Loan Documents;

               (b) fully executed copies of the documents evidencing the Permitted Additional Senior
Indebtedness; and

               (c) the Intercreditor Agreement, duly executed by the Second Lien Agent and the Borrower.

     19. As a condition to the effectiveness of this Amendment, Administrative Agent and the
Requisite Lenders shall have received (or, in the case of (f), below, reviewed), in form and
substance reasonably satisfactory to Administrative Agent and the Requisite Lenders, the following:

               (a) this Amendment, duly executed by Borrower, Collateral Agent and the Requisite Lenders;

               (b) an Affirmation of Subsidiary Guaranty and Security Agreement, duly executed by each
Guarantor;

               (c) Resolutions of the Board of Directors of Borrower authorizing the execution, delivery and
performance of this Amendment, with an incumbency certificate; each in form and content reasonably
acceptable to Administrative Agent;

               (d) fully executed copies of the WildBlue Acquisition Documents;

               (e) an amendment fee, payable to Administrative Agent for the ratable benefit of each Lender
which executes this Amendment, according to the Pro Rata Share of each such Lender, in the amount
of one quarter of one percent (0.25%) of each such Lender’s Pro Rata Share;

               (f) the draft Houlihan Lokey valuation and fairness opinion reports that were performed on
WildBlue and completed during September 2009;

6

 

               (g) appropriate biographies of the members of WildBlue’s management team that will be retained
post-WildBlue Acquisition (based upon the most current merger discussions between the Borrower and
WildBlue) (subject to satisfactory review by the Requisite Lenders, in their reasonable
discretion);

               (h) a certificate signed by a Responsible Official of Borrower certifying that the condition
specified in Section 8.1(e) of the Existing Loan Agreement is true and correct as of the First
Amendment Date;

               (i) all reasonable attorneys’ fees and costs incurred by Agents’ counsel through the date of
this Amendment, which may be debited from any of Borrower’s accounts (following Borrower’s
authorization of such fees and costs); and

               (j) such other documents, and completion of such other matters, as Administrative Agent or any
Lender proposing to sign this Amendment may reasonably deem necessary or appropriate.

     20. As a condition to the effectiveness of Administrative Agent’s and the Requisite Lenders’
consent to the WildBlue Acquisition, Administrative Agent and the Requisite Lenders shall have
received (or, in the case of (g), below, reviewed), in form and substance satisfactory to
Administrative Agent and the Requisite Lenders, the following:

               (a) Instruments of Joinder, duly executed by WildBlue and each Subsidiary of WildBlue (other
than EchoBlue and WB Canada) that is in existence on the First Amendment Date and any future
Subsidiary of WildBlue that constitutes a Significant Domestic Subsidiary on the closing date of
the WildBlue Acquisition, with respect to the Subsidiary Security Agreement and the Amended and
Restated Subsidiary Guaranty;

               (b) Resolutions of the Boards of Directors (or similar) of WildBlue and each WildBlue
Subsidiary (other than EchoBlue and WB Canada) that is in existence on the First Amendment Date
and any future Subsidiary of WildBlue that constitutes a Significant Domestic Subsidiary on the
closing date of the WildBlue Acquisition authorizing the execution, delivery and performance of the
Instruments of Joinder, with incumbency certificate; each in form and content reasonably acceptable
to Administrative Agent;

               (c) a UCC Financing Statement (and/or Amendment), naming WildBlue and each WildBlue Subsidiary
(other than EchoBlue and WB Canada) that is in existence on the First Amendment Date and any future
Subsidiary of WildBlue that constitutes a Significant Domestic Subsidiary on the closing date of
the WildBlue Acquisition as an additional Debtor;

               (d) an Assignment Separate from Certificate with respect to, and the physical share
certificates representing Borrower’s ownership interest in, WildBlue, and WildBlue’s ownership
interest in each WildBlue Subsidiary (other than EchoBlue and WB Canada) that is in existence on
the First Amendment Date and any future Subsidiary of WildBlue that constitutes a Significant
Domestic Subsidiary on the closing date of the WildBlue Acquisition;

               (e) a copy of a certificate signed by a responsible officer of WildBlue (in the form delivered
to Borrower in connection with the WildBlue Acquisition Documents) certifying that no Company
Material Adverse Effect (as such term is defined in the WildBlue Acquisition Documents) shall have
occurred to WildBlue’s operations since the First Amendment Date;

               (f) a certificate signed by a Responsible Official of Borrower certifying that the condition
specified in Section 8.1(e) of the Existing Loan Agreement is true and correct as of the date of,
and after giving effect to, the WildBlue Acquisition;

7

 

               (g) the final Houlihan Lokey valuation and fairness opinion reports that were performed on
WildBlue and completed during September 2009; provided that such final version shall not vary
materially (in the reasonable discretion of the Requisite Lenders) from the draft reviewed pursuant
to Section 20 of this Amendment; and

               (h) such other documents, and completion of such other matters, as Administrative Agent or any
Lender signing this Amendment may reasonably deem necessary or appropriate.

     21. The Governing law and venue provisions of Section 11.17 of the Credit Agreement are
incorporated herein by this reference mutatis mutandis. This Amendment may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one instrument. Delivery of an executed counterpart hereof by facsimile transmission
shall be effective as delivery of a manually executed counterpart. Except as amended hereby, all
of the provisions of the Credit Agreement and the other Loan Documents shall remain unmodified and
in full force and effect except that each reference to the “Agreement”, or words of like import in
any Loan Document, shall mean and be a reference to the Credit Agreement as amended hereby. This
Amendment shall be deemed a “Loan Document” as defined in the Credit Agreement. Each party shall
execute and deliver such further documents, and perform such further acts, as may be reasonably
necessary to achieve the intent of the parties as expressed in this Amendment. The Requisite
Lenders hereby authorize the Administrative Agent and Collateral Agent to enter into the
Intercreditor Agreement (and any intercreditor agreement in respect of Permitted Additional Senior
Indebtedness) on the terms approved under this Amendment. Borrower acknowledges and agrees that
the Addendum to Credit Agreement shall be deemed effective, without any further action by any party
hereto, upon the execution and delivery of the Second Lien Loan Agreement and shall remain
effective so long as any loans under (and any Permitted Refinancing Indebtedness of) the Second
Lien Loan Agreement remain outstanding.

[Balance of Page Intentionally Left Blank]

8

 

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above
written.

	 	 	 	 	 
	 	VIASAT, INC.

 	 
	 	By:  	/s/ Keven K. Lippert
 	 
	 	 	Keven K. Lippert 	 
	 	 	VP, General Counsel and Secretary 	 
	 
	 	Address:

ViaSat, Inc.

6155 El Camino Real

Carlsbad, California 92009

Attn: Ronald G. Wangerin

         Chief Financial Officer

Telecopier: (760) 929-3926

Telephone: (760) 476-2200

UNION BANK, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Mark Adelman
 	 
	 	 	Mark Adelman 	 
	 	 	Vice President 	 
	 
	 	Address:

UNION BANK, N.A.

San Diego Commercial Banking Office

530 “B” Street, 4th Floor, S-420

San Diego, California 92101-4407

Attn: Mark Adelman

Telecopier: (619) 230-3766

Telephone: (619) 230-3516

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement]

[Signatures Continued Next Page]

S-1

 

	 	 	 	 	 
	 	UNION BANK, N.A.,

as Collateral Agent

 	 
	 	By:  	/s/ Mark Adelman
 	 
	 	 	Mark Adelman 	 
	 	 	Vice President 	 
	 
	 	Address:

UNION BANK, N.A.

San Diego Commercial Banking Office

530 “B” Street, 4th Floor, S-420

San Diego, California 92101-4407

Attn: Mark Adelman

Telecopier: (619) 230-3766

Telephone: (619) 230-3516

UNION BANK, N.A.,

as a Lender and Swing Line Lender

 	 
	 	By:  	/s/ Mark Adelman
 	 
	 	 	Mark Adelman 	 
	 	 	Vice President 	 
	 
	 	Address:

UNION BANK, N.A.

San Diego Commercial Banking Office

530 “B” Street, 4th Floor, S-420

San Diego, California 92101-4407

Attn: Mark Adelman

Telecopier: (619) 230-3766

Telephone: (619) 230-3516

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement]

[Signatures Continued Next Page]

S-2

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as a Lender

 	 
	 	By:  	/s/ Karin S. Barnes
 	 
	 	 	Name:  	Karin S. Barnes 	 
	 	 		Senior Vice President 	 
	 
	 	Address:

Bank of America, N.A.

450 B Street, Suite 1500

San Diego, CA 92101

Attn: Karin S. Barnes

         Senior Vice President

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement]

[Signatures Continued Next Page]

S-3

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Anna C. Ruiz
 	 
	 	 	Name:  	Anna C. Ruiz 	 
	 	 	             Vice President 	 
	 
	 	Address:

JPMORGAN CHASE BANK, N.A.

650 Town Center Drive, Suite 1000

Costa Mesa, CA 92626

Attn: Anna C. Ruiz

         Vice President

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement]

[Signatures Continued Next Page]

S-4

 

	 	 	 	 	 
	 	BANK OF THE WEST,

as a Lender

 	 
	 	By:  	/s/ Ed Ong
 	 
	 	 	Name:  	Ed Ong 	 
	 	 	             Vice President 	 
	 
	 	Address:

BANK OF THE WEST

1280 4th Ave.

San Diego, CA 92101

Attn: Ed Ong

         Vice President

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement]

[Signatures Continued Next Page]

S-5

 

	 	 	 	 	 
	 	COMERICA BANK,

as a Lender

 	 
	 	By:  	                        /s/ Steve D. Clear
 	 
	 	 	Name:  	Steve D. Clear 	 
	 	 	             Vice President 	 
	 
	 	Address:

COMERICA BANK

611 Anton Blvd., 4th Floor M/C 4462

Costa Mesa, CA 92626

Attn: Steve D. Clear

         Vice President

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement]

[Signatures Continued Next Page]

S-6

 

	 	 	 	 	 
	 	CALIFORNIA BANK & TRUST,

as a Lender

 	 
	 	By:  	/s/ Steve DeLong
 	 
	 	 	Name:  	Steve DeLong 	 
	 	 	             Senior Vice President 	 
	 
	 	Address:

CALIFORNIA BANK & TRUST

4230 La Jolla Village Drive, Suite 100

San Diego, CA 92122

Attn: Steve DeLong

         Senior Vice President

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement]

[Signatures Continued Next Page]

S-7

 

	 	 	 	 	 
	 	STATE BANK OF INDIA, LOS ANGELES AGENCY,

as a Lender

 	 
	 	By:  	/s/ K.S.S. Naidu
 	 
	 	 	Name:  	K.S.S. Naidu 	 
	 	 	             Vice President (Credit) 	 
	 
	 	Address:

STATE BANK OF INDIA, LOS ANGELES AGENCY

707 Wilshire Blvd., Suite #1995

Los Angeles, CA 90017

Attn: K.S.S. Naidu

         Vice President (Credit)

 	 

[Signature Page to First Amendment to

Fourth Amended and Restated Revolving Loan Agreement

S-8

 

ADDENDUM

TO FOURTH AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

     This Addendum to Fourth Amended and Restated Revolving Loan Agreement (this “Addendum”) is
entered into by and between ViaSat, Inc., a Delaware corporation (“Borrower”), each lender from
time to time party to the Credit Agreement (as defined below) (collectively, the “Lenders” and
individually, a “Lender”), UNION BANK, N.A., as Administrative Agent (in such capacity,
“Administrative Agent”), BANK OF AMERICA, N.A., as Syndication Agent, JPMORGAN CHASE BANK, N.A., as
Documentation Agent, BANC OF AMERICA SECURITIES LLC and UNION BANK, N.A., as Joint Lead Arrangers
and Joint Book Runners and UNION BANK, N.A., as Collateral Agent (in such capacity, “Collateral
Agent;” collectively, the “Agents”).

RECITALS

     Borrower, Agents and the Lenders are parties to that certain Fourth Amended and Restated
Revolving Loan Agreement dated as of July 1, 2009 (as amended from time to time, including by that
certain First Amendment to Fourth Amended and Restated Revolving Loan Agreement dated as of
September 30, 2009 (the “First Amendment”), collectively, the “Credit Agreement”).

     Pursuant to the First Amendment, this Addendum shall become effective, without further action
of the Parties, upon the execution and delivery of the Second Lien Loan Agreement (the “Effective
Date”). Upon the Effective Date, the Parties shall be deemed to have amended the Credit Agreement
in accordance with the terms of this Addendum; provided that at such time as no loans under
the Second Lien Credit Agreement (or any Permitted Refinancing Indebtedness with respect thereto)
remain outstanding and any commitment to lend thereunder has been terminated, this Addendum shall
cease to be in effect and the Credit Agreement shall be deemed amended to remove all the provisions
of this Addendum. Unless otherwise defined, all initially capitalized terms in this Addendum shall
be as defined in the Credit Agreement.

     NOW, THEREFORE, the parties agree as follows:

     1. The following defined terms hereby are added, amended and or restated in Section 1.1 of the
Credit Agreement to read as follows:

          “Anik F2” means the satellite owned by Telesat designated as such and operated in the
111.1 west longitude orbital position.

          “Casualty Event” means, whether in one or more occurrences, any loss of title or any
loss (including any partial loss) of or damage to or destruction of, or any condemnation or other
taking (including by any Governmental Agency) of, any Ground Assets or other property (such other
property being “Casualty Event Satellite Property”) of Borrower or any of its Subsidiaries that
results in an aggregate loss of transponder capacity or bandwidth with respect to WildBlue-1 and
Anik F2, or any substitute or replacement satellite (which shall in any event not include
ViaSat-1), constituting at least 50% of the aggregate U.S. Ka-band transponder capacity or
bandwidth with respect to WildBlue-1, Anik F2 and any such substitute or replacement satellite
taken as a whole.

          “Casualty Event Satellite Property” has the meaning specified in the definition of
Casualty Event.

          “Debt Issuance” means any issuance or borrowing of any debt securities (including debt
securities that are convertible into, or exchangeable or exercisable for, any shares, interests,
participations or other equivalents (howsoever designated) of capital stock of a corporation, any
partnership interests, any membership interests or equivalent equity securities in a Person (other
than a corporation)) by the Borrower or any of its Subsidiary Guarantors after the Closing Date
other than pursuant to clauses (a) through (j) of Section 6.10.

 

 

          “Dilutive Transaction” means any issuance or Disposition of any capital stock or other
form of equity interest in the ViaSat-1 Joint Venture, or in any Person that beneficially owns,
directly or indirectly, capital stock or other form of equity interest in the ViaSat-1 Joint
Venture (collectively, and without regard to the size or amount, however measured, of such issuance
or Disposition, a “Size Irrelevant Dilutive Transaction”), that results in the Borrower
owning, directly or indirectly through Wholly-Owned Subsidiaries, less than 51% (on a fully-diluted
basis) of either the voting power or the equity interests in the ViaSat-1 Joint Venture; provided
that from the occurrence of a Casualty Event until the prepayment described in Section
3.1(h)(i) or the satisfaction of the requirements of Section 3.1(h)(ii), as the case
may be, any Size Irrelevant Dilutive Transaction shall constitute a Dilutive Transaction if it
results in the Borrower owning, directly or indirectly through Wholly-Owned Subsidiaries, a smaller
percentage of either the voting power or the equity interests in the ViaSat-1 Joint Venture than it
owned immediately prior to giving effect thereto.

          “FCC” means the Federal Communications Commission of the United States and any
successor entity.

          “Net Cash Sales Proceeds” means, (1) with respect to any Disposition, the sum
of (a) the Cash proceeds received by or for the account of Borrower and its Subsidiaries from
such Disposition plus (b) the amount of Cash received by or for the account of Borrower and
its Subsidiaries upon the sale, collection or other liquidation of any proceeds that are not Cash
from such Disposition, in each case net of (i) any amount required to be paid to any Person
owning an interest in the assets disposed of, (ii) any amount applied to the repayment of
Indebtedness secured by a Lien permitted under Section 6.9 on the asset disposed of, (iii) any
transfer, income or other taxes payable as a result of such Disposition, (iv) professional fees and
expenses, fees due to any Governmental Agency, broker’s commissions and other out-of-pocket costs
of sale actually paid to any Person that is not an Affiliate of Borrower attributable to such
Disposition and (v) any reserves established in accordance with GAAP in connection with such
Disposition; and (2) with respect to any Debt Issuance, the cash proceeds thereof, net of customary
fees, commissions, costs and other expenses incurred in connection therewith.

          “Ground Asset” means ground infrastructure or other equipment relating to any
satellite, transponder capacity or bandwidth.

          “License SPVs” means wholly-owned special purpose vehicle Subsidiaries of Borrower
whose assets are orders, licenses and/or permits, if any, granted by the FCC for the construction,
launch and operation of WildBlue-1 and Anik F2 and landing rights with respect thereto.

          “Regulatory Approvals” means the licenses, consents and approvals set forth on
Schedule 1.01(b), which licenses, consents and approvals have been granted to Borrower or
its Subsidiaries by the FCC and any other applicable Governmental Agency for the construction,
launch and operation of ViaSat-1, WildBlue-1 or Anik F2 and landing rights with respect thereto in
the United States.

          “Satellite Asset” means (i) the ViaSat-1 satellite to be manufactured by Space
Systems/Loral, Inc., (ii) the WildBlue-1 satellite, (iii) the Anik F-2 satellite or the WildBlue
Companies’ rights and interests therein, (iv) any other communications satellite operated by
Borrower or any of its Subsidiaries, or by the ViaSat-1 Joint Venture or any of the WildBlue
Companies, or on which Borrower, any of its Subsidiaries, the ViaSat-1 Joint Venture or any of the
WildBlue Companies has the right to use all or a substantial portion of the capacity or all or a
substantial portion of the Ka-band capacity available to provide service to the United States, to
the extent the ownership or right to use such satellite or capacity is acquired in exchange for or
replacement of ViaSat-1, WildBlue-1 or Anik F-2, (v) transponder capacity or bandwidth on any such
satellite representing 20% or more of the total transponder capacity or bandwidth thereof, or 20%
or more of the Ka-band transponder capacity or bandwidth thereon available to provide service to
the United States, or (vi) any equity securities or other ownership interest in the ViaSat-1 Joint
Venture or WB Communications or in any entity that beneficially owns equity securities or other
ownership interests directly or indirectly in the ViaSat-1 Joint Venture or WB Communications.

 

 

          “Significant Subsidiary” means a Subsidiary that either (i) had net income for the
Fiscal Year then most recently ended in excess of 5% of Net Income for such Fiscal Year or (ii) had
net assets in excess of 5% of the total net assets of Borrower and its Subsidiaries on a
consolidated basis as at the end of the Fiscal Year then most recently ended; provided, that the
aggregate Net Income or total net assets of all Subsidiaries that are not deemed to be Significant
Subsidiaries does not exceed 10% of the aggregate Net Income or total net assets of Borrower and
its Subsidiaries on a consolidated basis, as applicable, as at the end of the Fiscal Quarter then
most recently ended, determined on a quarterly basis, and if, as of the end of such Fiscal Quarter,
such threshold is exceeded, all such Subsidiaries collectively that constitute 10% or more of the
aggregate Net Income or total net assets of Borrower and its Subsidiaries, as applicable, will each
constitute a Significant Subsidiary under this Agreement and will deliver the documents required to
be delivered by Significant Subsidiaries pursuant to Section 5.12.

          “Subsidiary” means, as of any date of determination and with respect to any Person,
any corporation, limited liability company or partnership (whether or not, in any case,
characterized as such or as a “joint venture”), whether now existing or hereafter organized
or acquired: (a) in the case of a corporation or limited liability company, of which a majority of
the securities having ordinary voting power for the election of directors or other governing body
(other than securities having such power only by reason of the happening of a contingency) are at
the time beneficially owned by such Person and/or one or more Subsidiaries of such Person, or (b)
in the case of a partnership, of which a majority of the partnership or other ownership interests
are at the time beneficially owned by such Person and/or one or more of its Subsidiaries.
Notwithstanding the foregoing, except for purposes of Sections 6.11, 6.13,
6.14,6.15, 6.20, 7.1(a) through (d), Section 7.3,
Sections 9.1(g), (i) and (j), the definitions of Indebtedness, Interest
Expense, EBIT and EBITDA, Trellisware and, until the requirements of Section 3.1(h)(ii) are
applicable, the ViaSat-1 Joint Venture shall not be deemed to be “Subsidiaries,” and the
representations and warranties set forth in Article 4, the covenants set forth in
Article 5 and Article 6, and the Events of Default set forth in Section 9.1
shall not apply to Trellisware or the ViaSat-1 Joint Venture; provided that at any time the
requirements of Section 3.1(h)(ii) are applicable, the ViaSat-1 Joint Venture will be
deemed a Subsidiary for all purposes under this Agreement and the other Loan Documents.

          “Telesat” means Telesat Canada, a corporation existing under the laws of Canada having
its head office in the Province of Ontario, Canada.

          “ViaSat-1” means the high capacity Ka-band satellite referred to as ViaSat-1 currently
under construction.

          “WildBlue-1” means the satellite referred to as WildBlue-1.

     2. New Sections 3.1(g) and (h) hereby are added to the Credit Agreement to read as follows:

          “(g) Mandatory Prepayments. Subject to Section 3.10, the Borrower shall make the
following mandatory prepayments in the amounts and at the times set out below:

               (i) Asset Sales. If, subsequent to the Closing Date, the Borrower or any Subsidiary
shall receive Net Cash Sales Proceeds from any Disposition (other than a Disposition permitted
under clauses (a) or (b) of Section 6.2 hereof) of assets other than Ground Assets or other
Satellite Assets, then within five Banking Days after receipt of any Net Cash Sales Proceeds
therefrom, the Borrower shall prepay the outstanding principal amount of the Loans, together with
interest accrued thereon to the date of such prepayment, in an amount equal to such Net Cash Sales
Proceeds; provided, that no such prepayment shall be required under this Section
3.1(g)(i) with respect to (x) any Dispositions of assets other than Ground Assets or other
Satellite Assets for fair market value resulting in no more than $10,000,000 (disregarding for
purposes of this Section 3.1(g)(i) the $10,000,000 threshold in clause (b) of the
definition of “Disposition”) (the “Trigger Amount”) in Net Cash Sales Proceeds in any
Fiscal Year; provided further, that there shall be required to be applied to the
prepayment of the Loans only fifty percent (50%) of such Net Cash Sales Proceeds in excess of the
Trigger Amount and equal to or less than $50,000,000 in any Fiscal Year; to the extent, with
respect to the immediately foregoing proviso, the Borrower shall have delivered a Certificate from
a Responsible Official to the Administrative Agent stating

 

 

that such Net Cash Sales Proceeds are expected to be reinvested in specific fixed or capital assets
required for the conduct of the Permitted Business within 180 days following the date of such
Disposition, and provided further that if any such Net Cash Sale Proceeds shall not
have been reinvested pursuant to this clause (x) within 180 days after the date of such
Disposition, on such 180th day (or if not a Banking Day, the next Banking Day) Borrower shall make
a prepayment of principal under the Loans in an amount equal to such unreinvested balance, and (y)
any Disposition set forth on Schedule 3.1(g)(i).

               (ii) Debt Issuance. If, subsequent to the Closing Date, the Borrower shall receive
Net Cash Sales Proceeds from any Debt Issuance, then within five Banking Days after receipt of any
Net Cash Sales Proceeds therefrom, the Borrower shall prepay the outstanding principal amount of
the Loans, together with interest accrued thereon to the date of such prepayment, in an amount
equal to one hundred percent (100%) of such Net Cash Sales Proceeds.

          (h) Casualty Event. Upon the occurrence of a Casualty Event, and subject to
Section 3.10, the Borrower shall, at its option (to be exercised in its sole discretion,
but in any event (x) not later than 30 days following (A) a Casualty Event with respect to Ground
Assets or (B) the receipt of insurance or condemnation proceeds (net of any costs incurred to
collect such proceeds) with respect to Casualty Event Satellite Property), and (y) consistent with
the option exercised, if at all, under the Second Lien Loan Agreement, either (i) prepay the
outstanding principal amount of the Loans together with interest accrued thereon to the date of
such prepayment, in the amount equal to the insurance or condemnation proceeds received with
respect to such Casualty Event or (ii) cause the ViaSat-1 Joint Venture to execute instruments of
joinder to the Subsidiary Guaranty, the Subsidiary Pledge Agreement and the Subsidiary Security
Agreement and, whether or not the foregoing documents are executed, the ViaSat-1 Joint Venture
shall become a Subsidiary for all purposes of this Agreement and the other Loan Documents;
provided, however, in the event that the ViaSat-1 Joint Venture is not a Wholly-Owned
Subsidiary of the Borrower at the time of such Casualty Event and, solely as a result of its not
being a Wholly-Owned Subsidiary the execution of the documents contemplated in the foregoing
provisions of this clause (ii) is not permitted, then, as provided in the definition of Subsidiary
herein, the ViaSat-1 Joint Venture will be deemed a Subsidiary for all purposes under this
Agreement and any other Loan Documents notwithstanding the lack of execution of such documents.”

     3. New Sections 4.23 through 4.26 hereby are added to the Credit Agreement to read as follows:

          “4.23 Ownership of Property; Liens. Each of Borrower and its Subsidiaries has good
and valid record fee simple title to (in the case of owned real property), or good title to or
valid leasehold interests in, or easements or other limited property interests in, or has a license
to use, all its real and personal property and assets material to its business or necessary or used
in the ordinary conduct of its business, except for minor defects in title that do not interfere
with its ability to conduct its business as currently conducted or to utilize such properties and
assets for their intended purposes. All such properties and assets are free and clear of Liens,
other than Liens permitted by Section 6.9.

          4.24 Insurance. The properties of Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of Borrower, in such amounts,
with such deductibles and covering such risks as are customarily carried by companies engaged in
similar businesses and owning similar properties in localities where Borrower or the applicable
Subsidiary operates.

          4.25 Margin Regulations. Borrower is not engaged and will not engage, principally or
as one of its important activities, in the business of purchasing or carrying margin stock (within
the meaning of Regulation U issued by the Federal Reserve Board), or extending credit for the
purpose of purchasing or carrying margin stock.

          4.26 FCC Licenses. The FCC license issued to the Borrower applicable to the landing
rights for ViaSat-1 is currently in full force and effect in accordance with its terms. No FCC
license is required for the construction, launch or operation of ViaSat-1 at its designated orbital
position.

 

 

     4. Section 5.4 of the Credit Agreement hereby is amended and restated in its entirety to read
as follows:

          “5.4 Maintenance of Insurance. Maintain liability, casualty, workers’ compensation
and other insurance (subject to customary deductibles and retentions) with responsible insurance
companies in such amounts and against such risks as is carried by responsible companies engaged in
similar businesses and owning similar assets in the general areas in which Borrower and its
Subsidiaries operate, including, without limitation, the following:

               (a) General Coverage.

                    (i) Commercial General Liability Insurance. On and after the date hereof, commercial
general liability insurance against claims for bodily injury (including death) and property damage
in such amounts and on such terms and conditions as are customarily carried by companies of
established repute engaged in the same or a similar business as Borrower in the places where such
business is conducted.

                    (ii) Property Damage Insurance. On and after the date hereof, property damage
insurance with respect to property other than property referred to in Section 5.4(b) in
such amounts and on such terms and conditions as are customarily carried by companies of
established repute engaged in the same or a similar business as Borrower in the places where such
business is conducted.

                    (iii) Additional Insurance. On and after the date hereof, such other insurance as may
be required by law or under the Security Documents (and comply with all covenants in the Security
Documents with respect thereto).

               (b) Satellite Coverage,

                    (i) Launch and In-Orbit Insurance for ViaSat-1. Borrower shall procure, or cause its
Subsidiary to procure, at its own expense and maintain in full force and effect launch and in-orbit
operations insurance covering the launch and in-orbit operations of Borrower’s interest in ViaSat-1
attaching not later than the time that risk of loss to the satellite passes to Borrower under the
ViaSat-1 satellite purchase agreement, and continuing during the in-orbit operations of ViaSat-1,
but only to the extent and on such terms and conditions (including coverage period, exclusions,
limitations on coverage, co-insurance, deductibles and coverage amount) as is determined by
Borrower consistent with sound business practice based on commercially available terms in the
international satellite insurance market at a reasonable premium.

                    (ii) In-Orbit Insurance for Anik F2 and WildBlue-1. Borrower shall procure, or cause
its Subsidiary to procure, at its own expense and maintain in full force and effect during the term
of this Agreement, in-orbit insurance for WildBlue-1 and Anik F2 on terms and conditions, including
minimum amounts, consistent with the previous practices of the WildBlue Companies in place
immediately before the WildBlue Acquisition.

                    (iii) Endorsements for Satellite Insurance. As respects ViaSat-1, WildBlue-1 and Anik
F2, Borrower, or a Subsidiary, will, to the extent of its interest, (A) cause the Collateral Agent
to be designated as an additional insured and first loss payee (as its interests may appear) with
respect to the satellite launch and in-orbit insurance, (B) obtain the written agreement of the
insurers that such insurance shall not be canceled for non-payment of premium without at least
fifteen (15) days prior written notice of cancellation to the Collateral Agent, and (C) shall
provide, on terms and conditions reasonably available in the satellite insurance market, either as
a clause in, or any endorsement to, such policies, as follows:

 

 

                         (A) there shall be no recourse against the Collateral Agent, and other Agent or any Lender for
payment of premiums with respect thereto;

                         (B) the Collateral Agent shall have the right to submit a proof of loss under the policy in
place of Borrower in the event Borrower fails or may fail to timely submit such proof of loss;

                         (C) the insurers waive any right of subrogation against the Collateral Agent, each other Agent
and each Lender, and their respective officers, employees, agents and insurers; and

                         (D) the insurers waive any right to any set-off or counterclaim as against the Collateral
Agent, each other Agent and each Lender other than non-payment of premium.”

     5. New Section 5.14 hereby is added to the Credit Agreement to read as follows:

          “5.14 WildBlue License SPVs. With respect to all FCC licenses related to WildBlue-1
and Anik F2, Borrower shall cause all orders, licenses and permits granted by the FCC to be held at
all times in the name of one or more License SPVs (which shall be the sole legal and beneficial
owner(s) thereof). No such License SPV shall own any assets other than orders, licenses and
permits granted by the FCC, and no License SPV shall incur any obligation other than obligations
under such orders, licenses and permits, and obligations under the Subsidiary Guaranty.”

     6. New Sections 6.20, 6.21 and 6.23 hereby are added to the Credit Agreement to read as
follows:

          “6.20 Burdensome Agreements. Enter into any Contractual Obligation (other than this
Agreement or any other Loan Document or any document relating to Permitted Senior Indebtedness)
that (a) materially limits the ability (i) of any Subsidiary to Guarantee the Indebtedness of
Borrower or (ii) of Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on
property of such Person; provided, however, that this clause (ii) shall not
prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted
under Section 6.10(d) solely to the extent any such negative pledge relates to the property
financed by or the subject of such Indebtedness; or (b) requires the grant of a Lien to secure an
obligation of such Person if a material Lien is granted to secure another obligation of such
Person.

          6.21 Dilutive Issuances. From and after the occurrence of a Casualty Event, enter
into or permit any Subsidiary (which for purposes of this Section 6.21 includes the
ViaSat-1 Joint Venture) to enter into, any Dilutive Transaction; provided, that this
Section 6.21 shall cease to apply in the case of a particular Casualty Event if, and at the
time that, the Borrower makes the prepayment contemplated by Section 3.1(h)(i).

          6.22 Cash Sweep. From and after the occurrence of a Casualty Event, cause or permit
the ViaSat-1 Joint Venture (unless the ViaSat-1 Joint Venture has executed the joinder agreements
to the Subsidiary Guaranty, the Subsidiary Security Agreement and the Subsidiary Pledge Agreement
contemplated by Section 3.1(h)(ii)) to hold Cash, Cash Equivalents or short-term
investments in excess of $10,000,000 at any time, other than Cash, Cash Equivalents and short-term
investments held in deposit accounts and/or security accounts for which the owner of such account
and the applicable financial institution have executed a control agreement in favor of the
Collateral Agent under the Subsidiary Security Agreement such that the Collateral Agent has a valid
and perfected security interest in such account; provided, that this Section 6.22
shall cease to apply in the case of a particular Casualty Event if, and at the time that, the
Borrower makes the prepayment contemplated by Section 3.1(h)(i).

 

 

     7. Section 9.1 of the Credit Agreement hereby is amended by (i) deleting the period at the end
of clause (n) thereof and replacing it with “; or”; and (ii) inserting new clauses (o) and (p)
immediately after clause (n), to read as follows:

          “(o) Borrower or any Subsidiary shall fail to obtain, renew, maintain or comply in any respect
with the Regulatory Approvals; or any Governmental Agency shall revoke, terminate, withdraw,
suspend, modify, withhold or fail to renew any Regulatory Approval, or any Regulatory Approval
shall for whatever reason cease to be in full force and effect; or Borrower or any Subsidiary shall
for any reason lose any Regulatory Approval, and in each case, only to the extent it that
constitutes a Material Adverse Effect; or

          (p) Borrower or any of its Subsidiaries shall be convicted under any criminal law that could
lead to a forfeiture of any property of such Person in any respect that constitutes a Material
Adverse Effect.”exv4w1

Exhibit 4.1

COMMERCIAL BARGE LINE COMPANY

as Issuer

and

THE GUARANTORS PARTY HERETO

 

121/2% SENIOR SECURED NOTES DUE 2017

 

INDENTURE

DATED AS OF JULY 7, 2009

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	Trust Indenture	 	Section
	Act Section	 	Indenture
	310
	 	(a)(1)	 	7.11
	 
	 	(a)(2)	 	7.11
	 
	 	(a)(3)	 	N.A.
	 
	 	(a)(4)	 	N.A.
	 
	 	(a)(5)	 	7.11
	 
	 	(b)	 	7.3; 7.11
	 
	 	(c)	 	N.A.
	311
	 	(a)	 	7.12
	 
	 	(b)	 	7.12
	 
	 	(c)	 	N.A.
	312
	 	(a)	 	2.5
	 
	 	(b)	 	13.3
	 
	 	(c)	 	13.3
	313
	 	(a)	 	7.7
	 
	 	(b)(1)	 	7.7
	 
	 	(b)(2)	 	7.7
	 
	 	(c)	 	7.7
	 
	 	(d)	 	7.7
	314
	 	(a)	 	13.5
	 
	 	(b)	 	N.A.
	 
	 	(c)(1)	 	13.4
	 
	 	(c)(2)	 	13.4
	 
	 	(c)(3)	 	N.A.
	 
	 	(d)	 	10.3
	 
	 	(e)	 	13.5
	 
	 	(f)	 	N.A.
	315
	 	(a)	 	7.1
	 
	 	(b)	 	7.6
	 
	 	(c)	 	7.1
	 
	 	(d)	 	7.1
	 
	 	(e)	 	6.11
	316
	 	(a) (last sentence)	 	2.9
	 
	 	(a)(1)(A)	 	6.5
	 
	 	(a)(1)(B)	 	6.4
	 
	 	(a)(2)	 	N.A.
	 
	 	(b)	 	6.7
	 
	 	(c)	 	2.13
	317
	 	(a)(1)	 	6.8
	 
	 	(a)(2)	 	6.9
	 
	 	(b)	 	2.4
	318
	 	(a)	 	N.A.
	 
	 	(b)	 	N.A.
	 
	 	(c)	 	N.A.

 

			
	N.A. means not applicable.
	 
	*	 	This Cross-Reference Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 	 	 
	 	 	 	 
	ARTICLE I

	 	 	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE

	 	 	 
	 	 	 	 
	SECTION 1.1	 	Definitions
	 	 	1	 
	SECTION 1.2	 	Other Definitions
	 	 	31	 
	SECTION 1.3	 	Incorporation by Reference of Trust Indenture Act
	 	 	32	 
	SECTION 1.4	 	Rules of Construction
	 	 	32	 
	 	 	 
	 	 	 	 
	ARTICLE II

	 	 	 
	 	 	 	 
	THE NOTES

	 	 	 
	 	 	 	 
	SECTION 2.1	 	Form and Dating
	 	 	32	 
	SECTION 2.2	 	Execution and Authentication
	 	 	34	 
	SECTION 2.3	 	Registrar; Paying Agent
	 	 	34	 
	SECTION 2.4	 	Paying Agent To Hold Money in Trust
	 	 	34	 
	SECTION 2.5	 	Holder Lists
	 	 	35	 
	SECTION 2.6	 	Book-Entry Provisions for Global Securities
	 	 	35	 
	SECTION 2.7	 	Replacement Notes
	 	 	37	 
	SECTION 2.8	 	Outstanding Notes
	 	 	37	 
	SECTION 2.9	 	Treasury Notes
	 	 	37	 
	SECTION 2.10	 	Temporary Notes
	 	 	37	 
	SECTION 2.11	 	Cancellation
	 	 	37	 
	SECTION 2.12	 	Defaulted Interest
	 	 	38	 
	SECTION 2.13	 	Record Date
	 	 	38	 
	SECTION 2.14	 	Computation of Interest
	 	 	38	 
	SECTION 2.15	 	CUSIP Number
	 	 	38	 
	SECTION 2.16	 	Special Transfer Provisions
	 	 	38	 
	SECTION 2.17	 	Issuance of Additional Notes
	 	 	40	 
	 	 	 
	 	 	 	 
	ARTICLE III

	 	 	 
	 	 	 	 
	REDEMPTION AND PREPAYMENT

	 	 	 
	 	 	 	 
	SECTION 3.1	 	Notices to Trustee
	 	 	40	 
	SECTION 3.2	 	Selection of Notes To Be Redeemed
	 	 	40	 
	SECTION 3.3	 	Notice of Redemption
	 	 	40	 
	SECTION 3.4	 	Effect of Notice of Redemption
	 	 	41	 
	SECTION 3.5	 	Deposit of Redemption of Purchase Price
	 	 	41	 
	SECTION 3.6	 	Notes Redeemed in Part
	 	 	41	 
	SECTION 3.7	 	Optional Redemption
	 	 	41	 
	SECTION 3.8	 	Mandatory Redemption
	 	 	42	 
	SECTION 3.9	 	Offer To Purchase
	 	 	42	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 	 	 
	 	 	 	 
	ARTICLE IV

	 	 	 
	 	 	 	 
	COVENANTS

	 	 	 
	 	 	 	 
	SECTION 4.1	 	Payment of Notes
	 	 	43	 
	SECTION 4.2	 	Maintenance of Office or Agency
	 	 	43	 
	SECTION 4.3	 	Provision of Financial Information
	 	 	43	 
	SECTION 4.4	 	Compliance Certificate
	 	 	44	 
	SECTION 4.5	 	Taxes
	 	 	45	 
	SECTION 4.6	 	Stay, Extension and Usury Laws
	 	 	45	 
	SECTION 4.7	 	Limitation on Restricted Payments
	 	 	45	 
	SECTION 4.8	 	Limitation on Dividends and Other Payments Affecting
Restricted Subsidiaries
	 	 	47	 
	SECTION 4.9	 	Limitation on Incurrence of Debt
	 	 	49	 
	SECTION 4.10	 	Limitation on Asset Sales
	 	 	49	 
	SECTION 4.11	 	Limitation on Transactions with Affiliates
	 	 	51	 
	SECTION 4.12	 	Limitation on Liens
	 	 	52	 
	SECTION 4.13	 	Limitation on Sale and Leaseback Transactions
	 	 	53	 
	SECTION 4.14	 	Offer To Purchase upon Change of Control
	 	 	53	 
	SECTION 4.15	 	Maintenance of Properties and Corporate Existence
	 	 	54	 
	SECTION 4.16	 	Events of Loss
	 	 	54	 
	SECTION 4.17	 	Business Activities
	 	 	55	 
	SECTION 4.18	 	[Reserved]
	 	 	55	 
	SECTION 4.19	 	[Reserved]
	 	 	55	 
	SECTION 4.20	 	Additional Note Guarantees
	 	 	55	 
	SECTION 4.21	 	Limitation on Creation of Unrestricted Subsidiaries
	 	 	55	 
	SECTION 4.22	 	[Reserved]
	 	 	56	 
	SECTION 4.23	 	Further Assurances
	 	 	56	 
	 	 	 
	 	 	 	 
	ARTICLE V

	 	 	 
	 	 	 	 
	SUCCESSORS

	 	 	 
	 	 	 	 
	SECTION 5.1	 	Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	56	 
	SECTION 5.2	 	Successor Person Substituted
	 	 	58	 
	 	 	 
	 	 	 	 
	ARTICLE VI

	 	 	 
	 	 	 	 
	DEFAULTS AND REMEDIES

	 	 	 
	 	 	 	 
	SECTION 6.1	 	Events of Default
	 	 	58	 
	SECTION 6.2	 	Acceleration
	 	 	60	 
	SECTION 6.3	 	Other Remedies
	 	 	61	 
	SECTION 6.4	 	Waiver of Past Defaults
	 	 	61	 
	SECTION 6.5	 	Control by Majority
	 	 	61	 
	SECTION 6.6	 	Limitation on Suits
	 	 	61	 
	SECTION 6.7	 	Rights of Holders of Notes To Receive Payment
	 	 	62	 
	SECTION 6.8	 	Collection Suit by Trustee
	 	 	62	 
	SECTION 6.9	 	Trustee May File Proofs of Claim
	 	 	62	 
	SECTION 6.10	 	Priorities
	 	 	62	 
	SECTION 6.11	 	Undertaking for Costs
	 	 	63	 
	SECTION 6.12	 	Appointment and Authorization of The Bank of New York Mellon
Trust Company, N.A. as Collateral Agent and Security Trustee
	 	 	63	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	ARTICLE VII

	 	 	 
	 	 	 	 
	TRUSTEE

	 	 	 
	 	 	 	 
	SECTION 7.1	 	Duties of Trustee
	 	 	64	 
	SECTION 7.2	 	Rights of Trustee
	 	 	65	 
	SECTION 7.3	 	Limitation on Duty of Trustee in Respect of Collateral;
Indemnification
	 	 	66	 
	SECTION 7.4	 	Individual Rights of Trustee
	 	 	66	 
	SECTION 7.5	 	Trustee’s Disclaimer
	 	 	66	 
	SECTION 7.6	 	Notice of Defaults
	 	 	67	 
	SECTION 7.7	 	Reports by Trustee to Holders of the Notes
	 	 	67	 
	SECTION 7.8	 	Compensation and Indemnity
	 	 	67	 
	SECTION 7.9	 	Replacement of Trustee
	 	 	68	 
	SECTION 7.10	 	Successor Trustee by Merger, Etc.
	 	 	69	 
	SECTION 7.11	 	Eligibility; Disqualification
	 	 	69	 
	SECTION 7.12	 	Preferential Collection of Claims Against the Issuer
	 	 	69	 
	SECTION 7.13	 	Trustee’s Application for Instructions from the Issuer
	 	 	69	 
	SECTION 7.14	 	Limitation of Liability
	 	 	69	 
	SECTION 7.15	 	Collateral Agent
	 	 	69	 
	SECTION 7.16	 	Co-Trustees; Separate Trustee; Collateral Agent
	 	 	70	 
	 	 	 
	 	 	 	 
	ARTICLE VIII

	 	 	 
	 	 	 	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	 	 	 
	 	 	 	 
	SECTION 8.1	 	Option To Effect Legal Defeasance or Covenant Defeasance
	 	 	71	 
	SECTION 8.2	 	Legal Defeasance
	 	 	71	 
	SECTION 8.3	 	Covenant Defeasance
	 	 	71	 
	SECTION 8.4	 	Conditions to Legal Defeasance or Covenant Defeasance
	 	 	72	 
	SECTION 8.5	 	Deposited Money and Government Securities To Be Held in
Trust; Other Miscellaneous Provisions
	 	 	73	 
	SECTION 8.6	 	Repayment to Issuer
	 	 	73	 
	SECTION 8.7	 	Reinstatement
	 	 	73	 
	SECTION 8.8	 	Discharge
	 	 	74	 
	 	 	 
	 	 	 	 
	ARTICLE IX

	 	 	 
	 	 	 	 
	AMENDMENT, SUPPLEMENT AND WAIVER

	 	 	 
	 	 	 	 
	SECTION 9.1	 	Without Consent of Holders of the Notes
	 	 	75	 
	SECTION 9.2	 	With Consent of Holders of Notes
	 	 	76	 
	SECTION 9.3	 	Compliance with Trust Indenture Act
	 	 	77	 
	SECTION 9.4	 	Revocation and Effect of Consents
	 	 	77	 
	SECTION 9.5	 	Notation on or Exchange of Notes
	 	 	77	 
	SECTION 9.6	 	Trustee To Sign Amendments, Etc.
	 	 	77	 
	 	 	 
	 	 	 	 
	ARTICLE X

	 	 	 
	 	 	 	 
	SECURITY

	 	 	 
	 	 	 	 
	SECTION 10.1	 	Security Documents; Additional Collateral
	 	 	77	 
	SECTION 10.2	 	Recording, Registration and Opinions
	 	 	78	 
	SECTION 10.3	 	Releases of Collateral
	 	 	78	 
	SECTION 10.4	 	Form and Sufficiency of Release
	 	 	79	 
	SECTION 10.5	 	Possession and Use of Collateral
	 	 	80	 
	SECTION 10.6	 	[Intentionally Omitted]
	 	 	80	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 
	SECTION 10.7	 	[Intentionally Omitted]
	 	 	80	 
	SECTION 10.8	 	Purchaser Protected
	 	 	80	 
	SECTION 10.9	 	Authorization of Actions To Be Taken by the Collateral Agent
Under the Security Documents
	 	 	80	 
	SECTION 10.10	 	Authorization of Receipt of Funds by the Trustee Under the
Security Agreement
	 	 	80	 
	SECTION 10.11	 	Powers Exercisable by Receiver or Collateral Agent
	 	 	80	 
	 	 	 
	 	 	 	 
	ARTICLE XI

	 	 	 
	 	 	 	 
	APPLICATION OF TRUST MONIES

	 	 	 
	 	 	 	 
	SECTION 11.1	 	Collateral Account
	 	 	81	 
	SECTION 11.2	 	Withdrawal of Loss Proceeds
	 	 	81	 
	SECTION 11.3	 	Withdrawal of Net Cash Proceeds To Fund an Asset Sale Offer
or Net Loss Proceeds To Fund an Event of Loss Offer
	 	 	82	 
	SECTION 11.4	 	Withdrawal of Trust Monies for Investment in Replacement
Assets
	 	 	82	 
	SECTION 11.5	 	Investment of Trust Monies
	 	 	83	 
	SECTION 11.6	 	Use of Trust Monies; Retirement of Notes
	 	 	83	 
	SECTION 11.7	 	Disposition of Notes Retired
	 	 	84	 
	 	 	 
	 	 	 	 
	ARTICLE XII

	 	 	 
	 	 	 	 
	NOTE GUARANTEES

	 	 	 
	 	 	 	 
	SECTION 12.1	 	Note Guarantees
	 	 	84	 
	SECTION 12.2	 	Execution and Delivery of Note Guarantee
	 	 	85	 
	SECTION 12.3	 	Severability
	 	 	85	 
	SECTION 12.4	 	Limitation of Subsidiary Guarantors’ Liability
	 	 	85	 
	SECTION 12.5	 	Guarantors May Consolidate, Etc., on Certain Terms
	 	 	86	 
	SECTION 12.6	 	[Reserved]
	 	 	86	 
	SECTION 12.7	 	Release of a Subsidiary Guarantor
	 	 	86	 
	SECTION 12.8	 	Benefits Acknowledged
	 	 	87	 
	SECTION 12.9	 	Future Guarantors
	 	 	87	 
	 	 	 
	 	 	 	 
	ARTICLE XIII

	 	 	 
	 	 	 	 
	MISCELLANEOUS

	 	 	 
	 	 	 	 
	SECTION 13.1	 	Trust Indenture Act Controls
	 	 	87	 
	SECTION 13.2	 	Notices
	 	 	87	 
	SECTION 13.3	 	Communication by Holders of Notes with Other Holders of
Notes
	 	 	88	 
	SECTION 13.4	 	Certificate and Opinion as to Conditions Precedent
	 	 	88	 
	SECTION 13.5	 	Statements Required in Certificate or Opinion
	 	 	88	 
	SECTION 13.6	 	Rules by Trustee and Agents
	 	 	89	 
	SECTION 13.7	 	No Personal Liability of Directors, Officers, Employees and
Stockholders
	 	 	89	 
	SECTION 13.8	 	Governing Law
	 	 	89	 
	SECTION 13.9	 	No Adverse Interpretation of Other Agreements
	 	 	89	 
	SECTION 13.10	 	Successors
	 	 	89	 
	SECTION 13.11	 	Severability
	 	 	89	 
	SECTION 13.12	 	Counterpart Originals
	 	 	90	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 
	SECTION 13.13	 	Table of Contents, Headings, Etc.
	 	 	90	 
	SECTION 13.14	 	Acts of Holders
	 	 	90	 
	SECTION 13.15	 	Intercreditor Agreement
	 	 	91	 

	 	 	 
	EXHIBITS	 	 
	 
	 	 
	Exhibit A

	 	FORM OF 121/2% SENIOR SECURED NOTE
	Exhibit B

	 	FORM OF NOTATIONAL GUARANTEE
	Exhibit C

	 	FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO RULE 144A
	Exhibit D

	 	FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

 

 

     This Indenture, dated as of July 7, 2009, is by and among Commercial Barge Line Company, a
Delaware corporation (the “Company” or the “Issuer”), the Guarantors (as defined herein) and The
Bank of New York Mellon Trust Company, N.A., as trustee (in such capacity and not in its individual
capacity, the “Trustee”).

     Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the holders of (i) the Issuer’s 121/2% Senior Secured Notes due 2017 issued on the
date hereof that contain the restrictive legend in Exhibit A (the “Initial Notes”) , (ii)
Exchange Notes issued in exchange for the Initial Notes pursuant to the Registration Rights
Agreement or pursuant to an effective registration statement under the Securities Act without the
restrictive legend in Exhibit A (the “Exchange Notes”) and (iii) Additional Notes issued from time
to time (together with the Initial Notes and any Exchange Notes, the “Notes”).

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1 Definitions.

     “ABL Facility Collateral Agent” means Bank of America, N.A., as administrative agent and
collateral agent under the Credit Agreement, and its successors and/or assigns in such capacity.

     “ABL Liens” means all Liens in favor of the ABL Facility Collateral Agent on Collateral
securing the ABL Obligations.

     “ABL Obligations” means (i) the Debt and other obligations incurred under clause (ii) of the
definition of “Permitted Liens” which are secured by a Permitted Collateral Lien on the Collateral
and (ii) certain Hedging Obligations and cash management obligations owed to a lender or an
affiliate of a lender under the Credit Agreement and more particularly described in the
Intercreditor Agreement.

     “Acquired Debt” means Debt of a Person (including an Unrestricted Subsidiary) existing at the
time such Person becomes a Restricted Subsidiary or assumed in connection with the acquisition of
assets from such Person.

     “Additional Interest” means all additional interest owing on the Notes pursuant to the
Registration Rights Agreement.

     “Additional Notes” means Notes (other than the Initial Notes) issued pursuant to Article
II hereof and otherwise in compliance with the provisions of this Indenture.

     “Agent” means any Registrar, Paying Agent, (so long as Trustee serves in such capacity) or
co-registrar.

     “Affiliate” of any Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such Person. For the purposes of
this definition, “control” when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings that correspond to the foregoing. For purposes of this definition, any Person who owns at
least 20% of the outstanding Voting Interests of American Commercial Lines or any of its Restricted
Subsidiaries (including the Company) shall be deemed to be an affiliate of such Person.

     “American Commercial Lines” shall mean American Commercial Lines Inc., a Delaware corporation
and any successor.

     “Applicable Premium” means, with respect to any Note on any applicable redemption date, the
greater of:

     (1) 1.0% of the then outstanding principal amount of the Note; and

     (2) the excess of:

-1-

 

     (a) the present value at such redemption date of (i) the redemption price of
the Note at July 15, 2013 (such redemption price being set forth in the table
appearing in Section 3.7(b) plus (ii) all required interest payments due on the Note
through July 15, 2013 (excluding accrued but unpaid interest), computed using a
discount rate equal to the Treasury Rate as of such redemption date plus 50 basis
points; over

     (b) the then outstanding principal amount of the Note.

     “Asset Acquisition” means:

     (i) an Investment by American Commercial Lines or any Restricted Subsidiary of American
Commercial Lines (including the Company) in any other Person pursuant to which such Person
shall become a Restricted Subsidiary, or shall be merged with or into American Commercial
Lines or any Restricted Subsidiary; or

     (ii) the acquisition by American Commercial Lines or any Restricted Subsidiary of
American Commercial Lines (including the Company) of the assets of any Person which
constitute all or substantially all of the assets of such Person, any division or line of
business of such Person or any other properties or assets of such Person other than in the
ordinary course of business and consistent with past practices.

     “Asset Sale” means any transfer, conveyance, sale, lease or other disposition (including,
without limitation, dispositions pursuant to any consolidation or merger) by American Commercial
Lines or any of its Restricted Subsidiaries (including the Company) to any Person (other than to
American Commercial Lines or one or more of its Restricted Subsidiaries) in any single transaction
or series of transactions of:

     (i) Capital Interests in another Person (other than Capital Interests in American
Commercial Lines or directors’ qualifying shares or shares or interests required to be held
by foreign nationals pursuant to local law);

     (ii) any other property or assets (other than in the normal course of business,
including any sale or other disposition of obsolete or permanently retired equipment and any
sale of inventory in the ordinary course of business); provided, however, that the term
“Asset Sale” shall exclude:

     (a) an issuance of Capital Interests by a Restricted Subsidiary of American
Commercial Lines to American Commercial Lines, the Company or another Restricted
Subsidiary;

     (b) the sale or lease of products, services or accounts receivable in the
ordinary course of business or consistent with past practice (including sales of
Vessels) and any sale or other disposition of damaged, worn-out or obsolete assets
in the ordinary course of business;

     (c) any transaction permitted by Section 5.1 that constitutes a disposition of
all or substantially all of the assets of the Company and its Restricted
Subsidiaries taken as a whole;

     (d) any transfer, conveyance, sale, lease or other disposition of property or
assets, the gross proceeds of which (exclusive of indemnities) do not exceed in any
one or related series of transactions $5.0 million;

     (e) sales or other dispositions of cash or Eligible Cash Equivalents;

     (f) sales of interests in Unrestricted Subsidiaries;

     (g) the sale and leaseback of any assets within 180 days of the acquisition
thereof;

-2-

 

     (h) the disposition of assets (other than Obsolete Equipment) that, in the good
faith judgment of the Board of Directors of American Commercial Lines, are no longer
used or useful in the business of American Commercial Lines;

     (i) a Restricted Payment or Permitted Investment that is otherwise permitted by
this Indenture;

     (j) any trade-in of equipment in exchange for other equipment in the ordinary
course;

     (k) the creation of a Lien (but not the sale or other disposition of the
property subject to such Lien);

     (l) leases or subleases in the ordinary course of business to third persons not
interfering in any material respect with the business of American Commercial Lines
or any of its Restricted Subsidiaries and otherwise in accordance with the
provisions of this Indenture;

     (m) any disposition by a Restricted Subsidiary to American Commercial Lines or
by American Commercial Lines or a Restricted Subsidiary to a Restricted Subsidiary;
provided, however, if the disposition is by a Restricted Subsidiary that is a
Guarantor, then the disposition must be to a Guarantor; provided further that any
disposition to American Commercial Lines shall be otherwise permitted by this
Indenture;

     (n) dispositions of accounts receivable in connection with the collection or
compromise thereof in the ordinary course of business and consistent with past
practice;

     (o) licensing of intellectual property in accordance with industry practice in
the ordinary course of business;

     (p) any transfer of accounts receivable, or a fractional undivided interest
therein, by a Receivable Subsidiary in a Qualified Receivables Transaction;

     (q) sales of accounts receivable to a Receivable Subsidiary pursuant to a
Qualified Receivables Transaction for the Fair Market Value thereof, including cash
in an amount at least equal to 80% of the Fair Market Value thereof (for the
purposes of this clause (q), Purchase Money Notes will be deemed to be cash);

     (r) any exchange of like property pursuant to Section 1031 of the Code for use
or useful in a Permitted Business;

     (s) surrender contract rights or settle or release claims in the ordinary
course of business or grant Liens in accordance with this Indenture;

     (t) any sales or other dispositions of Obsolete Equipment in the ordinary
course of business, including scrapping of Obsolete Equipment;

     (u) transactions pursuant to the NRG Agreements;

     (v) any Sale and Leaseback Transaction permitted in accordance with the terms
of this Indenture; or

     (w) any sale, transfer or other disposition of assets or property of American
Commercial Lines that do not constitute Collateral owned by the Company and the
Guarantors (other than American Commercial Lines) and that would not constitute a
Change of Control.

-3-

 

     For purposes of this definition, any series of related transactions that, if effected as a
single transaction, would constitute an Asset Sale, shall be deemed to be a single Asset Sale
effected when the last such transaction which is a part thereof is effected.

     “Asset Sale Offer” means an Offer to Purchase required to be made by American Commercial
Lines, the Company or another Restricted Subsidiary, as the case may be, pursuant to Section 4.10
to all Holders.

     “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time of
determination, the present value (discounted at the rate of interest implicit in such transaction)
of the total obligations of the lessee for rental payments during the remaining term of the lease
included in such Sale and Leaseback Transaction (including any period for which such lease has been
or may be extended). Such present value shall be calculated using a discount rate equal to the
rate of interest implicit in such transaction, determined in accordance with GAAP; provided,
however, that if such Sale and Leaseback Transaction results in a Capital Lease Obligation, the
amount of Debt represented thereby will be determined in accordance with the definition of “Capital
Lease Obligations.”

     “Average Life” means, as of any date of determination, with respect to any Debt, the quotient
obtained by dividing (i) the sum of the products of (x) the number of years from the date of
determination to the dates of each successive scheduled principal payment (including any sinking
fund or mandatory redemption payment requirements) of such Debt multiplied by (y) the amount of
such principal payment by (ii) the sum of all such principal payments.

     “Bankruptcy Code” means Title 11, U.S. Code or any similar federal or state law for the relief
of debtors.

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act.

     “Board of Directors” means (i) with respect to American Commercial Lines or any Restricted
Subsidiary, its board of directors or any duly authorized committee thereof; (ii) with respect to a
corporation, the board of directors of such corporation or any duly authorized committee thereof;
and (iii) with respect to any other entity, the board of directors or similar body of the general
partner or managers of such entity or any duly authorized committee thereof.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of American Commercial Lines or any Restricted Subsidiary (including the Company) to
have been duly adopted by the Board of Directors, unless the context specifically requires that
such resolution be adopted by a majority of the Disinterested Directors, in which case by a
majority of such Disinterested Directors, and to be in full force and effect on the date of such
certification and delivered to the Trustee.

     “Business Day” means any day other than a Legal Holiday.

     “Capital Interests” in any Person means any and all shares, interests (including Preferred
Interests), participations or other equivalents in the equity interest (however designated) in such
Person and any rights (other than Debt securities convertible into an equity interest), warrants or
options to acquire an equity interest in such Person.

     “Capital Lease Obligations” means any obligation under a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP; and the amount of Debt
represented by such obligation shall be the capitalized amount of such obligations determined in
accordance with GAAP; and the Stated Maturity thereof shall be the date of the last payment of rent
or any other amount due under such lease prior to the first date upon which such lease may be
terminated by the lessee without payment of a penalty. For purposes of Section 4.12, a Capital
Lease Obligation shall be deemed secured by a Lien on the property being leased.

     “Certificated Notes” means Notes that are in the form of Exhibit A attached hereto.

     “Change of Control” means, with respect to any Person, the occurrence of any of the following
events:

-4-

 

     (i) the acquisition by any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, that is or
becomes the ultimate “beneficial owner” (as such term is used in Rules 13d-3 and 13d-5 under
the Exchange Act), directly or indirectly, of more than 50% of the Voting Interests in such
Person; provided that if such person is a group of investors which group includes one or
more Permitted Holders, the shares of Voting Interests of such Person beneficially owned by
the Permitted Holders that are part of such group shall not be counted for purposes of
determining whether this clause (i) is triggered; or

     (ii) during any period of two consecutive years, individuals who at the beginning of
such period constituted the Board of Directors of American Commercial Lines (together with
any new directors whose election by the Board of Directors or whose nomination for election
by the equityholders of such Person was approved by a vote of a majority of the directors of
such Person then still in office who were either directors at the beginning of such period
or whose election or nomination for election was previously so approved) cease for any
reason to constitute a majority of such Person’s Board of Directors then in office; provided
that any directors elected or appointed to the Board of Directors to satisfy the
requirements of any national securities exchange shall not be included for purposes of the
foregoing determination; or

     (iii) American Commercial Lines or any Restricted Subsidiary sells, conveys, transfers
or leases (either in one transaction or a series of related transactions) all or
substantially all of American Commercial Lines’ and its Restricted Subsidiaries’ assets
(determined on a consolidated basis) to any Person, or American Commercial Lines merges or
consolidates with, a Person other than a Restricted Subsidiary of American Commercial Lines
(unless the shareholders holding Voting Interests of the Company immediately prior to such
merger or consolidation control in excess of 50% of the Voting Interests in the surviving
Person immediately following such merger or consolidation).

     “Code” means the Internal Revenue Code of 1986, as amended from time to time and the
regulations promulgated thereunder.

     “Collateral” shall mean, collectively, all of the “Collateral” (as defined in the Security
Agreement), the Mortgaged Property, the “Pledged Collateral” (as defined in the Pledge Agreement)
and all other property of whatever kind and nature subject or purported to be subject from time to
time to a Lien under any Security Document.

     “Collateral Account” means the collateral account established pursuant to this Indenture and
the Security Documents.

     “Collateral Agent” means The Bank of New York Mellon Trust Company, N.A., in its capacity as
Collateral Agent under the Security Documents together with its successors.

     “Commission” means the Securities and Exchange Commission and any successor thereto.

     “Common Interests” of any Person means Capital Interests in such Person that do not rank
prior, as to the payment of dividends or as to the distribution of assets upon any voluntary or
involuntary liquidation, dissolution or winding up of such Person, to Capital Interests of any
other class in such Person.

     “Company” or “Issuer” has the meaning set forth in the preamble hereto until a successor
replaces it in accordance with the applicable provisions of this Indenture and, thereafter, means
the successor.

     “Consolidated Cash Flow Available for Fixed Charges” means, with respect to any Person for any
period:

     (i) the sum of, without duplication, the amounts for such period, taken as a single
accounting period, of:

     (a) Consolidated Net Income;

     (b) Consolidated Non-cash Charges;

-5-

 

     (c) Consolidated Interest Expense to the extent the same was deducted in
computing Consolidated Net Income;

     (d) Consolidated Income Tax Expense (other than income tax expense (either
positive or negative) attributable to extraordinary gains or losses); and

     (e) to the extent actually incurred, all one-time cash severance costs; less

     (ii) the sum of the following:

     (a) non-cash items increasing Consolidated Net Income for such period, other
than (i) the accrual of revenue consistent with past practice, and (ii) reversals of
prior accruals or reserves for cash items previously excluded in the calculation of
Consolidated Non-cash Charges.

     “Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person, the ratio of the
aggregate amount of Consolidated Cash Flow Available for Fixed Charges of such Person for the four
full fiscal quarters, treated as one period, for which financial information in respect thereof is
available immediately preceding the date of the transaction (the “Transaction Date”) giving rise to
the need to calculate the Consolidated Fixed Charge Coverage Ratio (such four full fiscal quarter
period being referred to herein as the “Four-Quarter Period”) to the aggregate amount of
Consolidated Fixed Charges of such Person for the Four-Quarter Period. For purposes of this
definition, Consolidated Cash Flow Available for Fixed Charges and Consolidated Fixed Charges shall
be calculated after giving effect on a pro forma basis for the period of such calculation to:

     (i) the Incurrence of any Debt (other than working capital borrowings under any
revolving credit facility in the ordinary course of business) of the Company or any
Restricted Subsidiary (and the application of the proceeds thereof) and any repayment of
other Debt (other than working capital borrowings under any revolving credit facility in the
ordinary course of business) occurring during the Four-Quarter Period or at any time
subsequent to the last day of the Four-Quarter Period and on or prior to the Transaction
Date, as if such Incurrence or repayment, as the case may be (and the application of the
proceeds thereof), occurred on the first day of the Four-Quarter Period; and

     (ii) any Asset Sale or Asset Acquisition (including, without limitation, any Asset
Acquisition giving rise to the need to make such calculation as a result of American
Commercial Lines or any Restricted Subsidiary (including any Person who becomes a Restricted
Subsidiary as a result of such Asset Acquisition) Incurring Acquired Debt and also including
any Consolidated Cash Flow Available for Fixed Charges (including any pro forma expense and
cost reductions calculated on a basis consistent with Regulation S-X under the Exchange Act)
associated with any such Asset Acquisition or Asset Sale) occurring during the Four-Quarter
Period or at any time subsequent to the last day of the Four-Quarter Period and on or prior
to the Transaction Date, as if such Asset Sale or Asset Acquisition (including the
incurrence of, or assumption or liability for, any such Debt or Acquired Debt) occurred on
the first day of the Four-Quarter Period.

     In calculating Consolidated Interest Expense for purposes of determining the denominator (but
not the numerator) of this Consolidated Fixed Charge Coverage Ratio:

     (a) interest on outstanding Debt determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter (other than working
capital borrowings under any revolving credit facility incurred in the ordinary course of
business) shall be computed based upon the average daily interest on such Debt during the
applicable period;

     (b) if interest on any Debt (other than working capital borrowings under any revolving
credit facility incurred in the ordinary course of business) actually Incurred on the
Transaction Date may optionally be determined at an interest rate based upon a factor of a
prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the
interest rate will be computed based upon the average daily interest on such Debt during the
applicable period; and

-6-

 

     (c) notwithstanding clause (a) or (b) above, interest on Debt determined on a
fluctuating basis, to the extent such interest is covered by agreements relating to Hedging
Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect
to the operation of these agreements.

     “Consolidated Fixed Charges” means, with respect to any Person for any period, the sum of,
without duplication, the amounts for such period of:

     (i) Consolidated Interest Expense; and

     (ii) the product of (a) all dividends and other distributions paid or accrued during
such period in respect of Redeemable Capital Interests of such Person and its Restricted
Subsidiaries, times (b) a fraction, the numerator of which is one and the denominator of
which is one minus the then current combined federal, state and local statutory tax rate of
such Person, expressed as a decimal, in each case, determined on a consolidated basis in
accordance with GAAP.

     “Consolidated Income Tax Expense” means, with respect to any Person for any period, (x) if
such Person is not a corporation, the Permitted Tax Payments of such Person for such period or (y)
if such Person is a corporation, the provision for federal, state, local and foreign income taxes
of such Person and its Restricted Subsidiaries for such period as determined on a consolidated
basis in accordance with GAAP.

     “Consolidated Interest Expense” means, with respect to any Person for any period, without
duplication, the sum of:

     (i) the interest expense of such Person and its Restricted Subsidiaries for such period
as determined on a consolidated basis in accordance with GAAP, including, without
limitation:

     (a) any amortization of debt discount, original issue discount, non-cash
interest payments or accruals;

     (b) the net cost under non-speculative Hedging Obligations (including any
amortization of discounts);

     (c) the interest portion of any deferred payment obligation;

     (d) all commissions, discounts and other fees and charges owed with respect to
letters of credit, bankers’ acceptance financing or similar activities; and

     (e) all accrued interest; plus

     (ii) the interest component of Capital Lease Obligations paid, accrued and/or scheduled
to be paid or accrued by such Person and its Restricted Subsidiaries during such period
determined on a consolidated basis in accordance with GAAP;

     (iii) the interest expense on any Debt guaranteed by such Person and its Restricted
Subsidiaries; plus

     (iv) all capitalized interest of such Person and its Restricted Subsidiaries for such
period; less

     (v) interest income of such Person and its Restricted Subsidiaries for such period;

provided, however, that Consolidated Interest Expense will exclude the amortization or write off of
debt issuance costs and deferred financing fees, commissions, fees and expenses.

-7-

 

     “Consolidated Net Income” means, with respect to any Person, for any period, the consolidated
net income (or loss) of such Person and its Restricted Subsidiaries for such period as determined
in accordance with GAAP, adjusted, to the extent included in calculating such net income, by:

     (i) excluding, without duplication

     (a) all extraordinary gains or losses (net of fees and expense relating to the
transaction giving rise thereto), income, expenses or charges;

     (b) the portion of net income of such Person and its Restricted Subsidiaries
allocable to minority interest in unconsolidated Persons or Investments in
Unrestricted Subsidiaries to the extent that cash dividends or distributions have
not actually been received by such Person or one of its Restricted Subsidiaries;

     (c) gains or losses in respect of any Asset Sales (other than any Asset Sale
involving Obsolete Equipment solely for cash) after the Issue Date by such Person or
one of its Restricted Subsidiaries (net of fees and expenses relating to the
transaction giving rise thereto), on an after-tax basis;

     (d) the net income (loss) from any operations disposed of or discontinued after
the Issue Date and any net gains or losses on such disposition or discontinuance, on
an after-tax basis;

     (e) solely for purposes of determining the amount available for Restricted
Payments under clause (c) of the first paragraph of Section 4.7 the net income of
any Restricted Subsidiary (other than a Guarantor) or such Person to the extent that
the declaration of dividends or similar distributions by that Restricted Subsidiary
of that income is not at the time permitted, directly or indirectly, by operation of
the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulations applicable to that Restricted Subsidiary
or its stockholders;

     (f) any gain or loss realized as a result of the cumulative effect of a change
in accounting principles;

     (g) any fees and expenses, including deferred amortization and deferred
financing costs, paid in connection with the issuance of the Notes and the entering
into of the Credit Agreement contemplated by the Offering Memorandum (including,
without limitation, ratings agency fees);

     (h) non-cash compensation expense incurred with any issuance of equity
interests to an employee of such Person or any Restricted Subsidiary; and

     (i) any net after-tax gains or losses attributable to the early extinguishment
of Debt; and

     (ii) including, without duplication, dividends from Persons that are not Restricted
Subsidiaries actually received in cash by American Commercial Lines or any Restricted
Subsidiary.

     “Consolidated Non-cash Charges” means, with respect to any Person for any period, the
aggregate depreciation, amortization (including amortization of goodwill and other intangibles) and
other non-cash charges and expenses of such Person and its Restricted Subsidiaries reducing
Consolidated Net Income of such Person and its Restricted Subsidiaries for such period, determined
on a consolidated basis in accordance with GAAP (excluding any such charges constituting an
extraordinary item or loss and excluding any such charges constituting an extraordinary item or
loss or any charge which requires an accrual of or a reserve for cash charges for any future
period).

-8-

 

     “Consolidated Total Debt” means, as of any date of determination, an amount equal to the
aggregate principal amount of all outstanding Debt of American Commercial Lines and its Restricted
Subsidiaries (excluding (x) Hedging Obligations and (y) any undrawn letters of credit issued in the
ordinary course of business).

     “Consolidated Total Debt Ratio” means, as of any date of determination, the ratio of (a) the
Consolidated Total Debt of American Commercial Lines and its Restricted Subsidiaries on the date of
determination to (b) the aggregate amount of Consolidated Cash Flow Available for Fixed Charges for
the then most recent Four-Quarter Period, in each case with such pro forma adjustments to
Consolidated Total Debt and Consolidated Cash Flow Available for Fixed Charges as are consistent
with the pro forma adjustment provisions set forth in the definition of Consolidated Fixed Charge
Coverage Ratio.

     “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof is located at Two
North LaSalle Street, Suite 1020, Chicago, Illinois 60602, Attention: Corporate Trust, or such
other address as the Trustee may designate from time to time by written notice to the Holders and
the Company, or the principal corporate trust office of any successor Trustee (or such other
address as such successor Trustee may designate from time to time by notice to the Holders and the
Company).

     “Credit Agreement” means, collectively, (x) the Company’s loan agreement, to be dated on or
about the Issue Date, among the Company, American Commercial Lines and the other borrowers and
guarantors named therein and Bank of America, N.A., as administrative agent and the other agents
and lenders named therein and (y) any documentation in connection with a Qualified Receivables
Transaction, in each case, together with all related notes, letters of credit, collateral
documents, guarantees, and any other related agreements and instruments executed and delivered in
connection therewith, in each case as amended, modified, supplemented, restated, refinanced,
refunded or replaced in whole or in part from time to time including by or pursuant to any
agreement or instrument (including indentures) that extends the maturity of any Debt thereunder, or
increases the amount of available borrowings or obligations thereunder (whether pursuant to the
same agreement or one or more replacement or additional agreements) (provided that such increase is
permitted under clause (i) or (xiv) of the definition of the term “Permitted Debt”), or adds
Subsidiaries of American Commercial Lines as additional issuers, borrowers or guarantors
thereunder, in each case with respect to such agreement or any successor or replacement agreement
and whether by the same or any other agent, lender, group of lenders, purchasers or debt holders.

     “Debt” means at any time (without duplication), with respect to any Person, whether recourse
is to all or a portion of the assets of such Person, or non-recourse, the following if and to the
extent any of the foregoing items (other than clauses (iii), (vi), (vii), (viii) and (ix) below)
would appear as a liability upon a balance sheet of the specified Person prepared in accordance
with GAAP: (i) all indebtedness of such Person for money borrowed or for the deferred purchase
price of property, excluding any trade payables or other current liabilities incurred in the normal
course of business; (ii) all obligations of such Person evidenced by bonds, debentures, notes, or
other similar instruments; (iii) all obligations of such Person with respect to letters of credit
(other than letters of credit that are secured by cash or Eligible Cash Equivalents), bankers’
acceptances or similar facilities issued for the account of such Person; (iv) all obligations of
such Person issued or assumed as the deferred purchase price of property and all indebtedness
created or arising under any conditional sale or other title retention agreement with respect to
property or assets acquired by such Person (even if the rights and remedies of the seller or lender
under such agreement in the event of default are limited to repossession or sale of such property
or assets); (v) all Capital Lease Obligations of such Person (but excluding obligations under
operating leases); (vi) the maximum fixed redemption or repurchase price of Redeemable Capital
Interests in such Person at the time of determination and the amount of the liquidation preference
of any Preferred Interests of any Restricted Subsidiary of such Person, the principal amount of
such Capital Interests to be determined in accordance with this Indenture; (vii) any net
Obligations under Hedging Obligations of such Person, determined on a marked to market basis in
accordance with GAAP; (viii) Attributable Debt with respect to any Sale and Leaseback Transaction
to which such Person is a party; and (ix) all obligations of the types referred to in clauses (i)
through (viii) of this definition of another Person and all dividends and other distributions of
another Person, the payment of which, in either case, (A) such Person has Guaranteed or (B) is
secured by (or the holder of such Debt or the recipient of such dividends or other distributions
has an existing right, whether contingent or otherwise, to be secured by) any Lien upon the
property or other assets of such Person, even though such Person has not assumed or become liable
for the payment of such Debt, dividends or other distributions. For purposes of

-9-

 

the foregoing:
(a) the maximum fixed repurchase price of any Redeemable Capital Interests that do not have a fixed
repurchase price shall be calculated in accordance with the terms of such Redeemable Capital
Interests as if such Redeemable Capital Interests were repurchased on any date on which Debt shall
be required to be determined pursuant to this Indenture; provided, however, that if such Redeemable
Capital Interests are not then permitted to be repurchased, the repurchase price shall be the book
value of such Redeemable Capital Interests; (b) the amount outstanding at any time of any Debt
issued with original issue discount is the principal amount of such Debt less the remaining
unamortized portion of the original issue discount of such Debt at such time as determined in
conformity with GAAP, but such Debt shall be deemed Incurred only as of the date of original
issuance thereof; (c) the amount of any Debt described in clause (ix)(A) above shall be the maximum
liability under any such Guarantee; (d) the amount of any Debt described in clause (ix)(B) above
shall be the lesser of (I) the maximum amount of the obligations so secured and (II) the Fair
Market Value of such property or other assets; and (e) interest, fees, premium, and expenses and
additional payments, if any, will not constitute Debt.

     Notwithstanding the foregoing, in connection with the purchase by American Commercial Lines or
any Restricted Subsidiary of any business, the term “Debt” will exclude (x) customary
indemnification obligations and (y) post-closing payment adjustments to which the seller may become
entitled to the extent such payment is determined by a final closing balance sheet or such payment
is otherwise contingent; provided, however, that such amounts would not be required to be reflected
on the face of a balance sheet prepared in accordance with GAAP. The amount of Debt of any Person
at any date shall be the outstanding balance at such date of all unconditional obligations as
described above and the maximum liability, upon the occurrence of the contingency giving rise to
the obligations, of any contingent obligations at such date; provided, however, that in the case of
Debt sold at a discount, the amount of such Debt at any time will be the accreted value thereof at
such time.

     “Default” means any event that is, or after notice or passage of time, or both, would be, an
Event of Default.

     “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.3 hereof as the Depositary with respect to the Notes, until
a successor shall have been appointed and become such pursuant to Section 2.6 hereof, and,
thereafter, “Depositary” shall mean or include such successor.

     “Disinterested Director” means, with respect to any proposed transaction between (i) American
Commercial Lines or a Restricted Subsidiary (including the Company), as applicable, and (ii) an
Affiliate thereof (other than American Commercial Lines or a Restricted Subsidiary), a member of
the Board of Directors of American Commercial Lines or such Restricted Subsidiary, as applicable,
who would not be a party to, or have a financial interest in, such transaction and is not an
officer, director or employee of, and does not have a financial interest in, such Affiliate. For
purposes of this definition, no person would be deemed not to be a Disinterested Director solely
because such person holds Capital Interests in American Commercial Lines or the Company or is an
employee of American Commercial Lines or the Company.

     “DTC” means The Depository Trust Company (55 Water Street, New York, New York).

     “Eligible Bank” means a bank or trust company that (i) is organized and existing under the
laws of the United States of America, or any state, territory or possession thereof, (ii) as of the
time of the making or acquisition of an Investment in such bank or trust company, has combined
capital and surplus in excess of $250.0 million and (iii) the senior Debt of which is rated at
least “A-2” by Moody’s or at least “A” by Standard & Poor’s.

     “Eligible Cash Equivalents” means any of the following Investments: (i) securities issued or
directly and fully guaranteed or insured by the United States or any agency or instrumentality
thereof (provided that the full faith and credit of the United States is pledged in support
thereof) maturing not more than one year after the date of acquisition; (ii) time deposits in and
certificates of deposit of any Eligible Bank, provided that such Investments have a maturity date
not more than two years after date of acquisition and that the Average Life of all such Investments
is one year or less from the respective dates of acquisition; (iii) repurchase obligations with a
term of not more than 180 days for underlying securities of the types described in clause (i) above
entered into with any Eligible Bank; (iv) direct obligations issued by any state of the United
States or any political subdivision or public instrumentality

-10-

 

thereof, provided that such
Investments mature, or are subject to tender at the option of the holder thereof, within 365 days
after the date of acquisition and, at the time of acquisition, have a rating of at least A from
Standard &
Poor’s or A-2 from Moody’s (or an equivalent rating by any other nationally recognized rating
agency); (v) commercial paper of any Person other than an Affiliate of American Commercial Lines,
provided that such Investments have one of the two highest ratings obtainable from either Standard
& Poor’s or Moody’s and mature within 180 days after the date of acquisition; (vi) overnight and
demand deposits in and bankers’ acceptances of any Eligible Bank and demand deposits in any bank or
trust company to the extent insured by the Federal Deposit Insurance Corporation against the Bank
Insurance Fund; (vii) money market funds substantially all of the assets of which comprise
Investments of the types described in clauses (i) through (vi); and (viii) instruments equivalent
to those referred to in clauses (i) through (vi) above or funds equivalent to those referred to in
clause (vii) above denominated in Euros or any other foreign currency comparable in credit quality
and tender to those referred to in such clauses and customarily used by corporations for cash
management purposes in jurisdictions outside the United States to the extent reasonably required in
connection with any business conducted by any Restricted Subsidiary organized in such jurisdiction,
all as determined in good faith by American Commercial Lines.

     “Event of Loss” means, with respect to any property or asset (tangible or intangible, real or
personal) constituting Collateral, any of the following:

     (i) any loss, destruction or damage of such property or asset;

     (ii) any institution of any proceeding for the condemnation or seizure of such property
or asset or for the exercise of any right of eminent domain;

     (iii) any actual condemnation, seizure or taking by exercise of the power of eminent
domain or otherwise of such property or asset, or confiscation of such property or asset or
the requisition of the use of such property or asset; or

     (iv) any settlement in lieu of clauses (ii) or (iii) above.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Notes” has the meaning set forth in the preamble hereto.

     “Excluded Assets” means the “Excluded Property” as defined in the Security Agreement.

     “Expiration Date” has the meaning set forth in the definition of “Offer to Purchase.”

     “Fair Market Value” means (i) with respect to the consideration received or paid in any
transaction or series of transactions, the fair market value thereof as determined in good faith by
the Board of Directors of American Commercial Lines or (ii) in the case of an Asset Sale pursuant
to the NRG Agreements, the value determined in accordance with the NRG Agreements.

     “Fleet Mortgages” means the Fleet Mortgages, dated as of the closing date, among each of
American Commercial Lines LLC and ACL Transportation LLC, respectively, and The Bank of New York
Mellon Trust Company, N.A. as collateral agent and security trustee, as amended, amended and
restated or otherwise modified from time to time, and any other fleet mortgage executed by the
Company or a Guarantor in favor of an agent under the Credit Agreement and The Bank of New York
Mellon Trust Company, N.A., as security trustee, or any successor thereto, for the benefit of
Holders of the Notes.

     “Foreign Subsidiary” means, with respect to any Person, any Restricted Subsidiary of such
Person that is not organized or existing under the laws of the United States, any state or
territory thereof or the District of Columbia and any Restricted Subsidiary of such Foreign
Subsidiary.

     “Four-Quarter Period” has the meaning set forth in the definition of “Consolidated Fixed
Charge Coverage Ratio.”

-11-

 

     “GAAP” means generally accepted accounting principles in the United States, consistently
applied, as set forth in the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board, or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession of the United States, which are in
effect on the Issue Date.

     “General Maritime Law” means the law related to maritime issues as developed and enforced by
the Federal Courts of the United States sitting as maritime courts (as provided for in the United
States Constitution) and codified by certain United States Federal statutes.

     “Global Note Legend” means the legend identified as such in Exhibit A hereto.

     “Global Notes” means the Notes in global form that are in the form of Exhibit A
hereto.

     “Governmental Authority” means the government of the United States of America, any other
nation or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

     “Guarantee” means, as applied to any Debt of another Person, (i) a guarantee (other than by
endorsement of negotiable instruments for collection in the normal course of business), direct or
indirect, in any manner, of any part or all of such Debt, (ii) any direct or indirect obligation,
contingent or otherwise, of a Person guaranteeing or having the effect of guaranteeing the Debt of
any other Person in any manner and (iii) an agreement of a Person, direct or indirect, contingent
or otherwise, the practical effect of which is to assure in any way the payment or performance (or
payment of damages in the event of non-performance) of all or any part of such Debt of another
Person (and “Guaranteed” and “Guaranteeing” shall have meanings that correspond to the foregoing).

     “Guarantor” means any Person that executes a Note Guarantee in accordance with the provisions
of this Indenture and their respective successors and assigns.

     “Hedging Obligations” of any Person means the obligations of such person pursuant to any
interest rate agreement, credit, commodity or equity swap, cap, floor, collar, forward transaction,
physical transaction, hedge transaction, spot transaction, currency agreement or commodity
agreement or any combination thereof, including, but not limited to, obligations relating to fuel
prices.

     “Holder” means a Person in whose name a Note is registered in the Note Register.

     “Incur” means, with respect to any Debt or other obligation of any Person, to create, issue,
incur (by conversion, exchange or otherwise), assume, Guarantee or otherwise become liable in
respect of such Debt or other obligation or the recording, as required pursuant to GAAP or
otherwise, of any such Debt or other obligation on the balance sheet of such Person. Debt
otherwise Incurred by a Person before it becomes a Subsidiary of the Company shall be deemed to be
Incurred at the time at which such Person becomes a Subsidiary of the Company. “Incurrence,”
“Incurred,” “Incurrable” and “Incurring” shall have meanings that correspond to the foregoing. A
Guarantee by the Company or a Restricted Subsidiary of Debt Incurred by the Company or a Restricted
Subsidiary, as applicable, shall not be a separate Incurrence of Debt. In addition, the following
shall not be deemed a separate Incurrence of Debt:

     (i) amortization of debt discount or accretion of principal with respect to a
non-interest bearing or other discount security;

     (ii) the payment of regularly scheduled interest in the form of additional Debt of the
same instrument or the payment of regularly scheduled dividends on Capital Interests in the
form of additional Capital Interests of the same class and with the same terms;

-12-

 

     (iii) the obligation to pay a premium in respect of Debt arising in connection with the
issuance of a notice of redemption or making of a mandatory offer to purchase such Debt; and

     (iv) unrealized losses or charges in respect of Hedging Obligations.

     “Indenture” means this Indenture, as amended or supplemented from time to time.

     “Initial Notes” has the meaning set forth in the preamble hereto.

     “Initial Purchaser” means Banc of America Securities LLC, and such other initial purchasers
party to the purchase agreement entered into in connection with the offer and sale of the Notes on
the Issue Date and any similar purchase agreement in connection with any Additional Notes.

     “Intercreditor Agreement” means the Intercreditor Agreement dated as of the Issue Date by and
between the ABL Facility Collateral Agent, the Collateral Agent, the Trustee, the Issuer and the
Guarantors.

     “Investment” by any Person means any direct or indirect loan, advance (or other extension of
credit) or capital contribution to (by means of any direct or indirect transfer of cash or other
property or assets to another Person or any other payments for property or services for the account
or use of another Person) another Person, including, without limitation, the following: (i) the
purchase or acquisition of any Capital Interest or other evidence of beneficial ownership or bonds,
notes, debentures or other securities in another Person and (ii) the purchase, acquisition or
Guarantee of the obligations of another Person or the issuance of a “keep-well” with respect
thereto, but shall exclude: (a) accounts receivable and other extensions of trade credit on
commercially reasonable terms in accordance with normal trade practices; (b) the acquisition of
property and assets from suppliers and other vendors in the normal course of business; and (c)
prepaid expenses and workers’ compensation, utility, lease and similar deposits, in the normal
course of business. For the avoidance of doubt, any payments pursuant to any Guarantee of American
Commercial Lines or any of its Restricted Subsidiaries previously incurred in compliance with this
Indenture shall not be deemed to be Investments by American Commercial Lines or such Restricted
Subsidiary, as the case may be.

     “Issue Date” means July 7, 2009.

     “Issuer” or “Company” has the meaning set forth in the preamble hereto until a successor
replaces it in accordance with the applicable provisions of this Indenture and, thereafter, means
the successor.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in The City
of New York, the city in which the principal Corporate Trust Office of the Trustee is located or at
a place of payment are authorized or required by law, regulation or executive order to remain
closed. If a payment date in a place of payment is a Legal Holiday, payment shall be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.

     “Lien” means, with respect to any property or other asset, any mortgage, deed of trust, deed
to secure debt, pledge, hypothecation, assignment, deposit arrangement, security interest, lien
(statutory or otherwise), charge, easement, encumbrance or other security agreement on or with
respect to such property or other asset (including, without limitation, any conditional sale or
other title retention agreement having substantially the same economic effect as any of the
foregoing).

     “Mortgage” has the meaning set forth in the Security Agreement.

     “Mortgaged Property” shall mean (i) the “Mortgaged Property” or “Trust Property”, as
applicable, as defined in each Mortgage on real property designated as “Mortgaged Property” on
Schedule D to the Purchase Agreement and (ii) each real property encumbered by a Mortgage delivered
after the date hereof, if any, pursuant to the Indenture.

     “Net Cash Proceeds” means, with respect to Asset Sales of any Person, cash and Eligible Cash
Equivalents received, net of (i) all reasonable out-of-pocket costs and expenses of such Person
incurred in connection with such

-13-

 

a sale, including, without limitation, all legal, accounting, title and recording tax
expenses, commissions and other fees and expenses incurred and all federal, state, foreign and
local taxes arising in connection with such an Asset Sale that are paid or required to be accrued
as a liability under GAAP by such Person; (ii) amounts provided as a reserve, in accordance with
GAAP, against any liabilities under any indemnification obligations associated with such Asset
Sale; (iii) all payments made by such Person on any Debt that is secured by such properties or
other assets in accordance with the terms of any Lien upon or with respect to such properties or
other assets or that must, by the terms of such Lien or such Debt, or in order to obtain a
necessary consent to such transaction or by applicable law, be repaid to any other Person (other
than the Company or a Restricted Subsidiary thereof) in connection with such Asset Sale; (iv) with
respect to the exercise by NRG of its option to purchase the Hall Street Terminal and/or not more
than 200 barges dedicated or allocable to the performance of the NRG Agreements, all sums that NRG
is permitted to set off against the purchase price payable thereunder pursuant to the terms of the
NRG Agreements, and with respect to the foreclosure by NRG of the Liens against the Hall Street
Terminal granted to it under the NRG Agreements, the obligations secured by such Liens and all
other amounts that pursuant to applicable law are paid from the proceeds of such foreclosure; and
(v) all contractually required distributions and other payments made to minority interest holders
in Restricted Subsidiaries of such Person as a result of such transaction; provided, however, that
(a) in the event that any consideration for an Asset Sale (which would otherwise constitute Net
Cash Proceeds) is required by (I) contract to be held in escrow pending determination of whether a
purchase price adjustment will be made or (II) GAAP to be reserved against other liabilities in
connection with such Asset Sale, such consideration (or any portion thereof) shall become Net Cash
Proceeds only at such time as it is released to such Person from escrow or otherwise; and (b) any
non-cash consideration received in connection with any transaction, which is subsequently converted
to cash, shall become Net Cash Proceeds only at such time as it is so converted.

     “Net Loss Proceeds” means the aggregate cash proceeds received by the Company or any Guarantor
in respect of any Event of Loss, including, without limitation, insurance proceeds, condemnation
awards or damages awarded by any judgment, net of the direct cost in recovery of such Net Loss
Proceeds (including, without limitation, legal, accounting, appraisal and insurance adjuster fees
and any relocation expenses incurred as a result thereof), amounts required to be applied to the
repayment of Debt secured by any Permitted Collateral Lien on the asset or assets that were the
subject of such Event of Loss (other than any Lien which does not rank prior to the Note Liens),
and any taxes paid or payable as a result thereof.

     “New Vessel” means, in the context of any Sale and Leaseback Transaction, any vessel for which
construction thereof has been completed not longer than two years prior to such Sale and Leaseback
Transaction.

     “Non-Recourse Receivable Subsidiary Indebtedness” has the meaning set forth in the definition
of “Receivable Subsidiary.”

     “Non-Guarantor Exception” has the meaning set forth in Section 4.9.

     “Note Custodian” means the Trustee when serving as custodian for the Depositary with respect
to the Global Notes, or any successor entity thereto.

     “Note Guarantee” means any guarantee of the Notes by any Guarantor pursuant to this Indenture.

     “Note Liens” means all Liens in favor of the Collateral Agent on Collateral securing the Note
Obligations, including, without limitation, any Permitted Additional Pari Passu Obligations.

     “Note Obligations” means the Debt Incurred and Obligations under this Indenture, the Notes and
the Security Documents.

     “Notes” has the meaning set forth in the preamble to this Indenture.

     “NRG Agreements” means, collectively, (a) the Coal Transportation Agreement pursuant to which
The Burlington Northern and Santa Fe Railway Company and American Commercial Terminals LLC will
transport certain tonnages of coal from the Powder River Basin mines in Wyoming and the Decker and
Spring Creek mines in Montana to the Big Cajun No. II steam-electric generating plant and coal
unloading dock of Louisiana Generating LLC;

-14-

 

(b) the Security Side Letter Agreement among American Commercial Terminals LLC, American
Commercial Barge Lines LLC, Louisiana Generating LLC and NRG New Roads Holdings LLC; (c) the Lease
between American Commercial Terminals LLC and NRG New Roads Holdings LLC covering the Hall Street
Terminal; (d) the Terminal Option Agreement between American Commercial Terminals LLC and NRG New
Roads Holdings LLC; (e) the Barge and Tug Option Agreement between American Commercial Lines LLC
and NRG New Roads Holdings LLC; (f) the Deed of Trust granted by American Commercial Terminals LLC
to Louisiana Generating LLC and NRG New Roads Holdings LLC in respect of the Hall Street Terminal;
(g) the Conditional Assignment and Assumption of Lease, between American Commercial Terminals LLC
and NRG New Roads Holdings LLC with respect to leased properties comprising a portion of the Hall
Street Terminal; (h) the Conditional Assignment of Inter Carrier Agreement between American
Commercial Terminals LLC and NRG New Roads Holdings LLC; and (i) the Operations Side Letter
Agreement between American Commercial Terminals LLC and Louisiana Generating LLC, each dated as of
December 10, 2004, as amended from time to time.

     “Obligations” means any principal, premium, interest (including any interest accruing
subsequent to the filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable state, federal or foreign law), penalties, fees, indemnifications,
reimbursements (including reimbursement obligations with respect to letters of credit and banker’s
acceptances), damages and other liabilities, and guarantees of payment of such principal, interest,
penalties, fees, indemnifications, reimbursements, damages and other liabilities, payable under the
documentation governing any Debt.

     “Obsolete Equipment” means barges, towboats, vessels and other equipment, property or assets
that, in the ordinary course of each of American Commercial Lines’ and its Restricted Subsidiaries’
business as presently conducted, are damaged, obsolete, surplus or at the end of their useful life,
in each case as reasonably determined by American Commercial Lines and the Company.

     “Offer” has the meaning set forth in the definition of “Offer to Purchase.”

     “Offer to Purchase” means a written offer (the “Offer”) sent by the Company by first class
mail, postage prepaid, to each Holder at his address appearing in the Note Register on the date of
the Offer, offering to purchase up to the aggregate principal amount of Notes set forth in such
Offer at the purchase price set forth in such Offer (as determined pursuant to this Indenture).
Unless otherwise required by applicable law, the offer shall specify an expiration date (the
“Expiration Date”) of the Offer to Purchase which shall be, subject to any contrary requirements of
applicable law, not less than 30 days or more than 60 days after the date of mailing of such Offer
and a settlement date (the “Purchase Date”) for purchase of Notes within five Business Days after
the Expiration Date. The Company shall notify the Trustee prior to the mailing of the Offer of the
Company’s obligation to make an Offer to Purchase, and the Offer shall be mailed by the Company or,
at the Company’s request, by the Trustee in the name and at the expense of the Company. The Offer
shall contain all instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Offer to Purchase. The Offer shall also state:

     (i) the Section of this Indenture pursuant to which the Offer to Purchase is being
made;

     (ii) the Expiration Date and the Purchase Date;

     (iii) the aggregate principal amount of the outstanding Notes offered to be purchased
pursuant to the Offer to Purchase (including, if less than 100%, the manner by which such
amount has been determined pursuant to Indenture covenants requiring the Offer to Purchase)
(the “Purchase Amount”);

     (iv) the purchase price to be paid by the Company for each $1,000 principal amount of
Notes accepted for payment (as specified pursuant to this Indenture) (the “Purchase Price”);

     (v) that the Holder may tender all or any portion of the Notes registered in the name
of such Holder and that any portion of a Note tendered must be tendered in a minimum amount
of $1,000 principal amount;

-15-

 

     (vi) the place or places where Notes are to be surrendered for tender pursuant to the
Offer to Purchase, if applicable;

     (vii) that, unless the Company defaults in making such purchase, any Note accepted for
purchase pursuant to the Offer to Purchase will cease to accrue interest on and after the
Purchase Date, but that any Note not tendered or tendered but not purchased by the Company
pursuant to the Offer to Purchase will continue to accrue interest at the same rate;

     (viii) that, on the Purchase Date, the Purchase Price will become due and payable upon
each Note accepted for payment pursuant to the Offer to Purchase;

     (ix) that each Holder electing to tender a Note pursuant to the Offer to Purchase will
be required to surrender such Note or cause such Note to be surrendered at the place or
places set forth in the Offer prior to the close of business on the Expiration Date (such
Note being, if the Company or the Trustee so requires, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing);

     (x) that Holders will be entitled to withdraw all or any portion of Notes tendered if
the Company (or its paying agent) receives, not later than the close of business on the
Expiration Date, a facsimile transmission or letter setting forth the name of the Holder,
the aggregate principal amount of the Notes the Holder tendered, the certificate number of
the Note the Holder tendered and a statement that such Holder is withdrawing all or a
portion of his tender;

     (xi) that (a) if Notes having an aggregate principal amount less than or equal to the
Purchase Amount are duly tendered and not withdrawn pursuant to the Offer to Purchase, the
Company shall purchase all such Notes and (b) if Notes having an aggregate principal amount
in excess of the Purchase Amount are tendered and not withdrawn pursuant to the Offer to
Purchase, the Company shall purchase Notes having an aggregate principal amount equal to the
Purchase Amount on a pro rata basis (with such adjustments as may be deemed appropriate so
that only Notes in denominations of $2,000 principal amount or integral multiples of $1,000
in excess thereof shall remain outstanding following such purchase); provided, however, that
if holders of other Debt also tender their Debt in such Offer to Purchase pursuant to an
Asset Sale, then the Trustee will select the Notes and other Permitted Additional Pari Passu
Obligations to be purchased on a pro rata basis; and

     (xii) if applicable, that, in the case of any Holder whose Note is purchased only in
part, the Company shall execute, and upon receipt of an Issuer Order, the Trustee shall
authenticate and deliver to the Holder of such Note without service charge, a new Note or
Notes, of any authorized denomination as requested by such Holder in writing, in the
aggregate principal amount equal to and in exchange for the unpurchased portion of the
aggregate principal amount of the Notes so tendered.

     “Offering Memorandum” means the Offering Memorandum related to the issuance of the Initial
Notes on the Issue Date, dated July 1, 2009.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or any
Vice-President of such Person.

     “Officers’ Certificate” means a certificate signed by two Officers of the Company or a
Guarantor, as applicable, one of whom must be the principal executive officer, the principal
financial officer or the principal accounting officer of the Company or such Guarantor, as
applicable.

     “OID Legend” means the legend identified as such in Exhibit A hereto.

-16-

 

     “Opinion of Counsel” means an opinion reasonably acceptable to the Trustee from legal counsel.
The counsel may be an employee of or counsel to American Commercial Lines, the Company or any
Subsidiary of the Company.

     “Parent Entity” means American Commercial Lines and any future direct or indirect parent of
the Company.

     “Parent Guarantee” means a Guarantee of the Notes by American Commercial Lines or any future
Parent Entity that executes a supplemental indenture.

     “Parent Guarantors” means American Commercial Lines and any future Parent Entity that executes
a Parent Guarantee in accordance with the terms of this Indenture.

     “Pari Passu Liens” means Liens securing Obligations ranking pari passu with the Notes which by
their terms are intended to be secured equally and ratably with the Notes and are permitted
pursuant to the applicable provisions of this Indenture and the Security Documents.

     “Participant” means, with respect to DTC, a Person who has an account with DTC.

     “Paying Agent” means any Person authorized by the Issuer to pay the principal of, premium, if
any, or interest on, or redemption, purchase, retirement, defeasance, covenant defeasance or
similar payment with respect to, any Notes on behalf of the Issuer.

     “Permitted Additional Pari Passu Obligations” means obligations under any Additional Notes or
other Debt secured by the Note Liens; provided that the amount of such obligations does not exceed
an amount such that immediately after giving effect to the Incurrence of such Additional Notes and
Debt and the receipt and application of the proceeds therefrom, the Consolidated Total Debt Ratio
of American Commercial Lines and its Restricted Subsidiaries would be less than or equal to the
lesser of (x) $50.0 million and (y) 2.75:1.0; provided further that (i) the representative of such
Permitted Additional Pari Passu Obligation executes a joinder agreement to the Security Agreement
and any other applicable Security Documents in the form attached thereto agreeing to be bound
thereby and (ii) American Commercial Lines has designated such Debt as “Permitted Additional Pari
Passu Obligations” under the Security Agreement and any other applicable Security Documents.

     “Permitted Business” means (1) any business similar in nature to any business conducted by the
Company and the Restricted Subsidiaries on the Issue Date and any business reasonably ancillary,
incidental, complementary or related to the business conducted by the Company and the Restricted
Subsidiaries on the Issue Date or a reasonable extension, development or expansion thereof, in each
case, as determined in good faith by the Board of Directors of the Company and (2) any business
which forms a part of a business (the “Acquired Business”) which is acquired by American Commercial
Lines or any of its Restricted Subsidiaries (including, without limitation, the Company) if the
primary intent of American Commercial Lines or such Restricted Subsidiary was to acquire that
portion of the Acquired Business which meets the requirements of clause (1) of this definition and
the portion of the Acquired Business which meets the requirements of clause (1) of this definition
constitutes at least 66 2/3% of the Acquired Business and such ancillary portion of the Acquired
Business is disposed of within 365 days of its acquisition.

     “Permitted Collateral Liens” means:

     (i) Liens securing the Notes outstanding on the Issue Date, Refinancing Indebtedness
with respect to such Notes, the Guarantees relating thereto and any Obligations with respect
to such Notes, Refinancing Debt and Guarantees;

     (ii) Pari Passu Liens securing Permitted Additional Pari Passu Obligations permitted to
be incurred pursuant to this Indenture which Liens are granted pursuant to the provisions of
the Security Documents;

-17-

 

     (iii) Liens existing on the Issue Date (other than Liens specified in clause (i) or
(ii) above) and any extension, renewal, refinancing or replacement thereof so long as such
extension, renewal, refinancing or replacement does not extend to any other property or
asset and does not increase the outstanding principal amount thereof (except by the amount
of any premium or fee paid or payable or original discount in connection with such
extension, renewal, refinancing or replacement);

     (iv) Liens described in clauses (ii) (which Liens shall be subject to the Intercreditor
Agreement), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) (but only with respect to
Obligations secured by Liens described in clause (vii) referred to therein), (xi), (xii),
(xiv), (xvi), (xvii), (xviii), (xix), (xx), (xxi), (xxiv), (xxv), (xxvi), (xxvii), (xxviii),
(xxix) (but only with respect to Liens otherwise described in this clause (iv)) and (xxx) of
the definition of “Permitted Liens”;

     (v) survey exceptions, encumbrances, easements or reservations of, or rights of others
for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and
other similar purposes, or zoning or other similar restrictions as to the use of real
properties or Liens incidental to the conduct of the business of such Person or to the
ownership of its properties which were not incurred in connection with Debt and which do not
individually or in the aggregate materially adversely affect the value of the property
affected thereby or materially impair the use of such property in the operation of the
business of such Person;

     (vi) other Liens (not securing Debt) incidental to the conduct of the business of
American Commercial Lines or any of its Restricted Subsidiaries, as the case may be, or the
ownership of their assets which do not individually or in the aggregate materially adversely
affect the value of the property affected thereby or materially impair the use of such
property in the operation of the business of American Commercial Lines or its Restricted
Subsidiaries; and

     (vii) Liens on the Collateral in favor of the Collateral Agent relating to Collateral
Agent’s administrative expenses with respect to the Collateral.

     “Permitted Debt” means

     (i) Debt Incurred pursuant to any Credit Agreement in an aggregate principal amount at
any one time outstanding not to exceed $400.0 million minus any amounts used to permanently
repay Obligations pursuant to clause (i) of the second paragraph of Section 4.10 and clause
(ii) of the first paragraph of Section 4.16;

     (ii) Debt outstanding under the Initial Notes (including any Exchange Notes pursuant to
the Registration Rights Agreement but excluding any Additional Notes) and contribution,
indemnification and reimbursement obligations owed by the Company or any Guarantor to any of
the other of them in respect of amounts paid or payable on such Initial Notes;

     (iii) Guarantees of the Notes (and any Exchange Notes pursuant to the Registration
Rights Agreement);

     (iv) Debt of American Commercial Lines or any Restricted Subsidiary outstanding at the
time of the Issue Date (other than clauses (i), (ii) or (iii) above or (xvi) below);

     (v) Debt owed to and held by American Commercial Lines or a Restricted Subsidiary;
provided that if such Debt is owed by the Company or a Guarantor to a Restricted Subsidiary
of American Commercial Lines that is not a Guarantor, such Debt shall be subordinated to the
prior payment in full of the Note Obligations;

     (vi) Guarantees Incurred by American Commercial Lines of Debt of a Restricted
Subsidiary otherwise permitted to be incurred under this Indenture;

-18-

 

     (vii) Guarantees by any Restricted Subsidiary of Debt of American Commercial Lines or
any Restricted Subsidiary, including Guarantees by any Restricted Subsidiary of Debt under
the Credit Agreement, provided that (a) such Debt is Permitted Debt or is otherwise Incurred
in accordance with Section 4.9 and (b) such Guarantees are subordinated to the Notes to the
same extent as the Debt being guaranteed;

     (viii) Debt Incurred in respect of workers’ compensation claims, health, disability or
other employee benefits, self-insurance obligations, indemnity, bid, performance, warranty,
release, appeal, surety and similar bonds, letters of credit for operating purposes and
completion guarantees provided or incurred (including Guarantees thereof) by American
Commercial Lines or a Restricted Subsidiary in the ordinary course of business;

     (ix) Debt under Hedging Obligations entered into to protect American Commercial Lines
and the Restricted Subsidiaries from fluctuations in interest rates, commodity prices and
currency exchange rates and guarantees in respect thereof;

     (x) Debt of American Commercial Lines or any Restricted Subsidiary pursuant to Capital
Lease Obligations and Purchase Money Debt under this clause (x), provided that the aggregate
principal amount of such Debt Incurred, together with any amount Incurred pursuant to clause
(xix) below, in any calendar year may not exceed $25.0 million in the aggregate;

     (xi) Debt arising from agreements of American Commercial Lines or a Restricted
Subsidiary providing for indemnification, contribution, earnout, adjustment of purchase
price or similar obligations, in each case, incurred or assumed in connection with the
acquisition or disposition of any business, assets or Capital Interests of a Restricted
Subsidiary otherwise permitted under this Indenture;

     (xii) the issuance by any of American Commercial Lines’ Restricted Subsidiaries to
American Commercial Lines or to any of its Restricted Subsidiaries of shares of preferred
stock; provided, however, that:

     (a) any subsequent issuance or transfer of Capital Interests that results in
any such preferred stock being held by a Person other than American Commercial Lines
or a Restricted Subsidiary; and

     (b) any sale or other transfer of any such preferred stock to a Person that is
not either American Commercial Lines or a Restricted Subsidiary

shall be deemed, in each case, to constitute an issuance of such preferred stock by such
Restricted Subsidiary that was not permitted by this clause (xii);

     (xiii) Debt arising from the honoring by a bank or other financial institution of a
check, draft or similar instrument drawn against insufficient funds in the ordinary course
of business;

     (xiv) Debt of American Commercial Lines or any Restricted Subsidiary not otherwise
permitted pursuant to this definition, in an aggregate principal amount not to exceed $25.0
million at any time outstanding, which Debt may be Incurred under a Credit Agreement;

     (xv) Refinancing Debt in respect of Debt permitted by clause (ii), (iii) or (iv) above,
this clause (xv) or the first paragraph under Section 4.9;

     (xvi) Debt of the Company or any of its Restricted Subsidiaries arising from customary
cash management services in connection with any automated clearinghouse transfer of funds in
the ordinary course of business;

     (xvii) Debt arising from (A) Investments in Subsidiaries established in connection with
financings of Vessels not to exceed $15.0 million in the aggregate outstanding at any time
and (B) other similar

-19-

 

Investments, loans and advances in an amount at any time outstanding not to exceed $3.5
million in the aggregate outstanding at any time;

     (xviii) the Incurrence by a Receivable Subsidiary of Debt in a Qualified Receivables
Transaction that is without recourse to American Commercial Lines or to any other Subsidiary
of American Commercial Lines or their assets (other than such Receivable Subsidiary and its
assets and, as to American Commercial Lines or any Subsidiary of American Commercial Lines,
other than pursuant to representations, warranties, covenants and indemnities customary for
such transactions) and is not guaranteed by any such Person;

     (xix) Debt Incurred in connection with Permitted Sale and Leaseback Transactions; and

     (xx) Guarantees by American Commercial Lines in connection with a Permitted JV
Transaction that are (A) expressly subordinated in right of payment to its guarantee of the
Notes, (B) have no guarantees or other credit support from any Restricted Subsidiary of
American Commercial Lines (including the Company) and (C) in an aggregate principal amount
not in excess of the cash proceeds received by the Company directly related to the
applicable Permitted JV Transaction.

     Notwithstanding anything herein to the contrary, Debt permitted under clause (i) of this
definition of “Permitted Debt” shall not constitute “Refinancing Debt” under clause (xv) of this
definition of “Permitted Debt.”

     “Permitted Holder” means (i) Samuel Zell, (ii) trusts established for the benefit of Samuel
Zell and members of his family and (iii) any of their respective Affiliates.

     “Permitted Investments” means:

     (i) Investments in existence on the Issue Date;

     (ii) Investments required pursuant to any agreement or obligation of American
Commercial Lines or a Restricted Subsidiary, in effect on the Issue Date, to make such
Investments;

     (iii) Eligible Cash Equivalents;

     (iv) Investments in property and other assets, owned or used by American Commercial
Lines or any Restricted Subsidiary in the operation of a Permitted Business;

     (v) (a) Investments by American Commercial Lines or any of its Restricted Subsidiaries
in American Commercial Lines or any Restricted Subsidiary that is a Guarantor, (b)
Investments by the Company and the Guarantors in Restricted Subsidiaries of American
Commercial Lines that are not Guarantors in the ordinary course of business and (c)
Investments by Restricted Subsidiaries that are not Guarantors in American Commercial Lines
or any Restricted Subsidiary;

     (vi) Investments by American Commercial Lines or any Restricted Subsidiary in a Person,
if as a result of such Investment (a) such Person becomes a Restricted Subsidiary or (b)
such Person is merged, consolidated or amalgamated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated or wound-up into, American Commercial
Lines or a Restricted Subsidiary;

     (vii) Hedging Obligations entered into to protect American Commercial Lines and the
Restricted Subsidiaries from fluctuations in interest rates, commodity prices and currency
exchange rates;

     (viii) Investments received in settlement of obligations or claims owed to American
Commercial Lines or any Restricted Subsidiary and as a result of bankruptcy or insolvency
proceedings or upon the foreclosure or enforcement of any Lien in favor of American
Commercial Lines or any Restricted Subsidiary;

-20-

 

     (ix) Investments by American Commercial Lines or any Restricted Subsidiary (other than
in an Affiliate) not otherwise permitted under this definition, in an aggregate amount not
to exceed $25.0 million at any one time outstanding;

     (x) (A) loans and advances (including for travel and relocation) to employees in an
amount not to exceed $5.0 million in the aggregate at any one time outstanding and (B) loans
or advances against, and repurchases of capital stock and options of American Commercial
Lines and its Restricted Subsidiaries held by management and employees in connection with
any stock option, deferred compensation or similar benefit plans approved by the Board of
Directors (or similar governing body) and otherwise issued in accordance with the terms of
this Indenture;

     (xi) Investments the payment for which consists solely of Qualified Capital Interests
of American Commercial Lines;

     (xii) any Investment in any Person to the extent such Investment represents the
non-cash portion of the consideration received in connection with an Asset Sale consummated
in compliance with Section 4.10 or any other disposition of property not constituting an
Asset Sale;

     (xiii) payroll, travel and similar advances to cover matters that are expected at the
time of such advances ultimately to be treated as expenses for accounting purposes and that
are made in the ordinary course of business and consistent with past practice;

     (xiv) Guarantees by American Commercial Lines or any Restricted Subsidiary of Debt of
American Commercial Lines or a Restricted Subsidiary of Debt otherwise permitted by Section
4.9;

     (xv) any Investment by American Commercial Lines or any Restricted Subsidiary in a
Receivable Subsidiary or any Investment by a Receivable Subsidiary in any other Person in
connection with a Qualified Receivables Transaction, so long as any Investment in a
Receivable Subsidiary is in the form of a Purchase Money Note or an Investment in Capital
Interests;

     (xvi) the issuance of any letter of credit or similar support for the obligations of
any insurance Subsidiary in the ordinary course of business; and

     (xvii) any Investment by American Commercial Lines or any Restricted Subsidiary in
connection with a joint venture on or after the Issue Date not to exceed $25.0 million in
aggregate amount at any one time outstanding (measured by fair market value of such
Investments as of the date made) so long as such joint venture is engaged only in a
Permitted Business.

     “Permitted JV Transaction” means a transaction or series of simultaneous related transactions
pursuant to which (1) American Commercial Lines or a Restricted Subsidiary contributes assets or
property (including Capital Interests) to a joint venture in exchange for cash, property, Capital
Interests or any combination of the foregoing and (2) the Company receives cash consideration equal
to at least 90% of the fair market value of the contributed assets (as determined in good faith by
the Company’s Board of Directors).

     “Permitted Liens” means:

     (i) Liens existing at the Issue Date;

     (ii) Liens that secure Obligations Incurred pursuant to clause (i) or (ix) of the
definition of “Permitted Debt”, including cash management obligations and Hedging
Obligations owed to a Lender or Affiliate of a Lender and described as “Bank Products” in
the Intercreditor Agreement, provided that such Liens are subject to the provisions of the
Intercreditor Agreement;

     (iii) any Lien for taxes or assessments or other governmental charges or levies not
then due and payable (or which, if due and payable, are being contested in good faith by
appropriate proceedings and

-21-

 

for which adequate reserves are being maintained, to the extent required by GAAP and such
proceedings have the effect of preventing the forfeiture or sale of the property or assets
subject to any such Lien);

     (iv) any carrier’s, warehousemen’s, materialmen’s, mechanic’s, landlord’s, repairmen’s
or other similar Liens arising, in the case of such other similar Liens, in the ordinary
course of business and by law for sums not then due and payable after giving effect to any
applicable grace periods (or which, if due and payable, are being contested in good faith by
appropriate proceedings and with respect to which adequate reserves are being maintained, to
the extent required by GAAP and such proceedings have the effect of preventing the
forfeiture or sale of the property or assets subject to any such Lien);

     (v) survey exceptions, encumbrances, easements or reservations of, or rights of others
for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and
other similar purposes, or zoning or other similar restrictions as to the use of real
properties or Liens incidental to the conduct of the business of such Person or to the
ownership of its properties which were not incurred in connection with Debt and which do not
individually or in the aggregate materially adversely affect the value of American
Commercial Lines or its Subsidiaries or materially impair the operation of the business of
such Person;

     (vi) pledges or deposits (a) in connection with workers’ compensation, unemployment
insurance and other types of statutory obligations, completion guarantees or the
requirements of any official body, or (b) to secure the performance of tenders, bids, surety
or performance bonds, leases, purchase, construction, sales, work in progress relating to
process payment contracts for the construction of barges or servicing contracts and other
similar obligations Incurred in the normal course of business consistent with industry
practice; or (c) to obtain or secure obligations with respect to letters of credit,
Guarantees, bonds or other sureties or assurances given in connection with the activities
described in clauses (a) and (b) above, in each case not Incurred or made in connection with
the borrowing of money, the obtaining of advances or credit or the payment of the deferred
purchase price of property or services or imposed by ERISA or the Code in connection with a
“plan” (as defined in ERISA) or (d) arising in connection with any attachment unless such
Liens shall not be satisfied or discharged or stayed pending appeal within 60 days after the
entry thereof or the expiration of any such stay;

     (vii) Liens on property of a Person existing at the time such Person is merged with or
into or consolidated with American Commercial Lines or a Restricted Subsidiary, or becomes a
Restricted Subsidiary or Liens on any property or asset prior to the acquisition thereof by
the Company (and in any case not created or Incurred in anticipation of such transaction),
provided that such Liens are not extended to the property and assets of American Commercial
Lines and its Restricted Subsidiaries other than the property or assets acquired;

     (viii) Liens securing Debt of a Restricted Subsidiary that is a Guarantor owed to and
held by American Commercial Lines or a Restricted Subsidiary that is a Guarantor thereof;

     (ix) other Liens (not securing Debt) incidental to the conduct of the business of
American Commercial Lines or any of its Restricted Subsidiaries, as the case may be, or the
ownership of their assets which do not individually or in the aggregate materially adversely
affect the value of such assets or materially impair the operation of the business of
American Commercial Lines or its Restricted Subsidiaries;

     (x) Liens to secure any permitted extension, renewal, refinancing or refunding (or
successive extensions, renewals, refinancings or refundings), in whole or in part, of any
Debt secured by Liens referred to in the foregoing clauses (i) and (vii); provided that such
Liens do not extend to any other property or assets and the principal amount of the
obligations secured by such Liens is not greater than the sum of the outstanding principal
amount of the refinanced Debt plus any fees and expenses, including premiums or original
issue discount related to such extension, renewal, refinancing or refunding;

     (xi) Liens in favor of customs or revenue authorities arising as a matter of law to
secure payment of custom duties in connection with the importation of goods incurred in the
ordinary course of business;

-22-

 

     (xii) licenses of intellectual property granted in the ordinary course of business;

     (xiii) Liens to secure Capital Lease Obligations permitted to be incurred pursuant to
clause (x) or (xix) of the definition of “Permitted Debt”; provided that such Liens do not
extend to any Collateral;

     (xiv) Liens upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligation in respect of banker’s acceptances issued or created in
the ordinary course of business for the account of such Person to facilitate the purchase,
shipment, or storage of such inventory or other goods;

     (xv) Liens securing Debt permitted to be Incurred pursuant to clause (x) of the
definition of “Permitted Debt” to finance the construction, purchase or lease of, or
repairs, improvements or additions to, property, plant or equipment of such Person;
provided, however, that the Lien may not extend to any Collateral or other property owned by
such Person or any of its Restricted Subsidiaries at the time the Lien is Incurred (other
than assets and property affixed or appurtenant thereto and any proceeds thereof), and the
Debt (other than any interest and fees thereon, or expenses incurred in connection
therewith) secured by the Lien may not be Incurred more than 180 days after the later of the
acquisition, completion of construction, repair, improvement, addition or commencement of
full operation of the property subject to the Lien;

     (xvi) Liens on property or shares of Capital Interests of another Person at the time
such other Person becomes a Subsidiary of such Person; provided, however, that (a) the Liens
may not extend to any other property owned by such Person or any of its Restricted
Subsidiaries (other than assets and property affixed or appurtenant thereto and proceeds
thereof) and (b) such Liens are not created or incurred in connection with, or in
contemplation of, such other Person becoming such a Restricted Subsidiary;

     (xvii) Liens (a) that are contractual rights of set-off (i) relating to the
establishment of depository relations with banks not given in connection with the issuance
of Debt, (ii) relating to pooled deposit or sweep accounts of American Commercial Lines or
any of its Restricted Subsidiaries to permit satisfaction of overdraft or similar
obligations and other cash management activities incurred in the ordinary course of business
of American Commercial Lines and or any of its Restricted Subsidiaries or (iii) relating to
purchase orders and other agreements entered into with customers of American Commercial
Lines or any of its Restricted Subsidiaries in the ordinary course of business and (b) of a
collection bank arising under Section 4-210 of the UCC on items in the course of collection,
(Y) encumbering reasonable customary initial deposits and margin deposits and attaching to
commodity trading accounts or other brokerage accounts incurred in the ordinary course of
business, and (Z) in favor of banking institutions arising as a matter of law or pursuant to
customary account agreements encumbering deposits (including the right of set-off) and which
are within the general parameters customary in the banking industry;

     (xviii) Liens securing judgments for the payment of money not constituting an Event of
Default under clause (vii) under Section 6.1 of this Indenture so long as such Liens are
adequately bonded and any appropriate legal proceedings that may have been duly initiated
for the review of such judgment have not been finally terminated or the period within which
such proceedings may be initiated has not expired;

     (xix) Deposits made in the ordinary course of business to secure liability to insurance
carriers;

     (xx) leases, subleases, licenses or sublicenses granted to others in the ordinary
course of business so long as such leases, subleases, licenses or sublicenses are
subordinate in all respects to the Liens granted and evidenced by the Security Documents and
which do not materially interfere with the ordinary conduct of the business of American
Commercial Lines or any Restricted Subsidiaries and do not secure any Debt;

     (xxi) Liens arising from UCC financing statement filings regarding operating leases
entered into by American Commercial Lines or any Restricted Subsidiary in the ordinary
course of business;

-23-

 

     (xxii) Liens on the assets of a Restricted Subsidiary that is not a Guarantor securing
Debt and other obligations of such Restricted Subsidiary incurred in compliance with this
Indenture (including Liens on the assets of a Receivables Subsidiary);

     (xxiii) Liens on the Collateral granted under the Security Documents in favor of the
Collateral Agent to secure the Notes, the Guarantees and the Permitted Additional Pari Passu
Obligations and Liens permitted under the Security Documents;

     (xxiv) Liens arising from Uniform Commercial Code financing statements filings or other
applicable similar filings regarding operating leases and vessel charters entered into by
American Commercial Lines and its Restricted Subsidiaries in the ordinary course of
business;

     (xxv) Liens incurred in the ordinary course of business of American Commercial Lines or
any Restricted Subsidiary of American Commercial Lines arising from the provision of
necessaries to any Vessel pursuant to General Maritime Law of the United States and 46
U.S.C. Section 31301 et seq., including but not limited to Vessel chartering, drydocking,
maintenance, repair, refurbishment or replacement, the furnishing of supplies and fuel,
payment of fuel user taxes and insurance premiums, boat stores and provisions, telephone
charges, groceries and food stocks, rigging and rope, fleeting, shifting, towing, port
charges, cover handling, barge cleaning, tankering and gas freeing services, to Vessels and
Related Assets, repairs and improvements to Vessels and Related Assets, personal injury,
and/or death occurring on a Vessel, claims for property damage and/or cargo loss or damage
and crews’ wages, each known as maritime liens;

     (xxvi) Liens resulting from arrangements among the stockholders of Foreign Subsidiaries
which limit or restrict the transfer of equity interests of such Foreign Subsidiaries by
those stockholders to third parties;

     (xxvii) Liens for salvage and general average;

     (xxviii) Liens under the NRG Agreements;

     (xxix) any extensions, substitutions, replacements or renewals of the foregoing;

     (xxx) Liens on shares of Capital Interests of a joint venture held by the Company or
any Guarantor in connection with a Permitted JV Transaction; and

     (xxxi) Liens securing Debt, as measured by principal amount, which, when taken together
with the principal amount of all other Debt secured by Liens (excluding Liens permitted by
clauses (i) though (xxx) above) at the time of determination, does not exceed $25.0 million
in the aggregate at any one time outstanding.

     “Permitted Sale and Leaseback Transactions” means, individually or collectively, a Sale and
Leaseback Transaction entered into by the Company or the Restricted Subsidiaries with any Person
(a) upon fair and reasonable terms, with respect to any New Vessel which, individually or in the
aggregate, does not exceed $50.0 million in any calendar year, and with respect to any Vessels
which are not New Vessels, does not exceed $40.0 million at any time during the term of the Notes,
in each case, together with any amounts Incurred pursuant to clause (x) of the definition of
“Permitted Debt” or (b) that individually or in the aggregate relates to assets having a fair
market value not exceeding $25.0 million.

     “Permitted Tax Payments” means, with respect to any Person, without duplication as to amounts
and as long as such Person is a pass-through entity for U.S. federal income tax purposes, payments
made to American Commercial Lines in an amount equal to the federal, state, local and foreign taxes
(including any penalties and interest) that such Person would owe if such Person were a corporation
for U.S. federal income tax purposes filing a consolidated or combined return with its
Subsidiaries.

-24-

 

     “Person” means any individual, corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization or government or any agency or political subdivision
thereof.

     “Pledge Agreement” means the pledge agreement to be dated as of the Issue Date between the
Collateral Agent, the Company and the Guarantors granting, among other things, a second-priority
Lien on the Capital Interests (as defined in the Pledge Agreement) subject to Permitted Collateral
Liens and Permitted Liens, in each case in favor of the Collateral Agent for its benefit and for
the benefit of the Trustee and the Holders of the Notes and the holders of any Permitted Additional
Pari Passu Obligations, as amended, modified, restated, supplemented or replaced from time to time
in accordance with its terms.

     “Preferred Interests,” as applied to the Capital Interests in any Person, means Capital
Interests in such Person of any class or classes (however designated) that rank prior, as to the
payment of dividends or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding up of such Person, to shares of Common Interests in such
Person.

     “Purchase Agreement” means the purchase agreement dated July 1, 2009 among the Company, the
Guarantors and Banc of America Securities LLC, as representative of the Initial Purchasers named
therein, entered into in connection with the offer and sale of the Notes on the Issue Date.

     “Purchase Amount” has the meaning set forth in the definition of “Offer to Purchase.”

     “Purchase Date” has the meaning set forth in the definition of “Offer to Purchase.”

     “Purchase Money Debt” means Debt (i) Incurred to finance the purchase or construction
(including additions and improvements thereto) of any assets (other than Capital Interests) of such
Person or any Restricted Subsidiary; and (ii) that is secured by a Lien on such assets where the
lender’s sole security is to the assets so purchased or constructed (and assets or property affixed
or appurtenant thereto and any proceeds thereof); and in either case that does not exceed 100% of
the cost and to the extent the purchase or construction prices for such assets are or should be
included in “addition to property, plant or equipment” in accordance with GAAP.

     “Purchase Money Note” means a promissory note of a Receivable Subsidiary to American
Commercial Lines or any Restricted Subsidiary, which note must be repaid from cash available to the
Receivable Subsidiary, other than amounts required to be established as reserves pursuant to
agreements, amounts paid to investors in respect of interest, principal and other amounts owing to
such investors and amounts paid in connection with the purchase of newly generated receivables.
The repayment of a Purchase Money Note may be subordinated to the repayment of other liabilities of
the Receivable Subsidiary on terms determined in good faith by the Company to be substantially
consistent with market practice in connection with Qualified Receivables Transactions.

     “Purchase Price” has the meaning set forth in the definition of “Offer to Purchase.”

     “Qualified Capital Interests” in any Person means a class of Capital Interests other than
Redeemable Capital Interests.

     “Qualified Equity Offering” means (i) an underwritten public equity offering of Qualified
Capital Interests pursuant to an effective registration statement under the Securities Act yielding
gross proceeds to the Company, or any direct or indirect parent company of the Company, of at least
$25.0 million or (ii) a private equity offering of Qualified Capital Interests of the Company other
than (x) any such public or private sale to an entity that is an Affiliate of the Company and (y)
any public offerings registered on Form S-8.

     “Qualified Receivables Transaction” means any transaction or series of transactions entered
into by American Commercial Lines or any of its Restricted Subsidiaries pursuant to which American
Commercial Lines or such Restricted Subsidiary transfers to (a) a Receivable Subsidiary (in the
case of a transfer by American Commercial Lines or any of its Restricted Subsidiaries) or (b) any
other Person (in the case of a transfer by a Receivable Subsidiary), or grants a security interest
in, any accounts receivable (whether now existing or arising in the future) of American Commercial
Lines or any of its Restricted Subsidiaries, and any assets related thereto, including, without
limita-

-25-

 

tion, all collateral securing such accounts receivable, all contracts and all Guarantees
or other obligations in respect of such accounts receivable, proceeds of such accounts receivable
and other assets which are customarily transferred or in respect of which security interests are
customarily granted in connection with an accounts receivable financing transaction; provided such
transaction is on market terms as determined in good faith by the Board of Directors of American
Commercial Lines at the time American Commercial Lines or such Restricted Subsidiary enters into
such transaction.

     “Receivable Subsidiary” means a Restricted Subsidiary of American Commercial Lines:

     (i) that is formed solely for the purpose of, and that engages in no activities other
than activities in connection with, financing accounts receivable of American Commercial
Lines and/or its Restricted Subsidiaries;

     (ii) that is designated by the Board of Directors of American Commercial Lines as a
Receivable Subsidiary pursuant to a Board of Directors’ resolution set forth in an Officers’
Certificate and delivered to the Trustee;

     (iii) that is either (a) a Restricted Subsidiary or (b) an Unrestricted Subsidiary
designated in accordance with Section 4.21;

     (iv) no portion of the Debt or any other obligation (contingent or otherwise) of which
(a) is at any time Guaranteed by American Commercial Lines or any Restricted Subsidiary
(excluding Guarantees of obligations (other than any Guarantee of Debt) pursuant to Standard
Securitization Undertakings), (b) is at any time recourse to or obligates American
Commercial Lines or any Restricted Subsidiary in any way, other than pursuant to Standard
Securitization Undertakings or (c) subjects any asset of American Commercial Lines or any
other Restricted Subsidiary of American Commercial Lines, directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings (such Debt, “Non-Recourse Receivable Subsidiary Indebtedness”);

     (v) with which neither American Commercial Lines nor any Restricted Subsidiary has any
material contract, agreement, arrangement or understanding other than (a) contracts,
agreements, arrangements and understandings entered into in the ordinary course of business
on terms no less favorable to American Commercial Lines or such Restricted Subsidiary than
those that might be obtained at the time from Persons that are not Affiliates of American
Commercial Lines in connection with a Qualified Receivables Transaction as determined in
good faith by the Board of Directors of American Commercial Lines, (b) fees payable in the
ordinary course of business in connection with servicing accounts receivable in connection
with such a Qualified Receivables Transaction as determined in good faith by the Board of
Directors of American Commercial Lines and (c) any Purchase Money Note issued by such
Receivable Subsidiary to American Commercial Lines or a Restricted Subsidiary; and

     (vi) with respect to which neither American Commercial Lines nor any other Restricted
Subsidiary has any obligation

     (a) to subscribe for additional shares of Capital Interests therein or make any
additional capital contribution or similar payment or transfer thereto except in
connection with a Qualified Receivables Transaction or

     (b) to maintain or preserve the solvency or any balance sheet term, financial
condition, level of income or results of operations thereof.

     “Redeemable Capital Interests” in any Person means any equity security of such Person that by
its terms (or by terms of any security into which it is convertible or for which it is
exchangeable), or otherwise (including the passage of time or the happening of an event), is
required to be redeemed, is redeemable at the option of the holder thereof in whole or in part
(including by operation of a sinking fund), or is convertible or exchangeable for Debt of such
Person at the option of the holder thereof, in whole or in part, at any time prior to the Stated
Maturity of the

-26-

 

Notes; provided that only the portion of such equity security which is required to be
redeemed, is so convertible or exchangeable or is so redeemable at the option of the holder thereof
before such date will be deemed to be Redeemable Capital Interests. Notwithstanding the preceding
sentence, any equity security that would constitute Redeemable Capital Interests solely because the
holders of the equity security have the right to require American Commercial Lines or its
Restricted Subsidiaries to repurchase such equity security upon the occurrence of a change of
control or an asset sale will not constitute Redeemable Capital Interests if the terms of such
equity security provide that American Commercial Lines or such Restricted Subsidiary, as the case
may be, may not repurchase or redeem any such equity security pursuant to such provisions unless
such repurchase or redemption complies with Section 4.7. The amount of Redeemable Capital
Interests deemed to be outstanding at any time for purposes of this Indenture will be the maximum
amount that American Commercial Lines and its Restricted Subsidiaries may become obligated to pay
upon the maturity of, or pursuant to any mandatory redemption provisions of, such Redeemable
Capital Interests or portion thereof, exclusive of accrued dividends.

     “Redemption Price” when used with respect to any Note to be redeemed, means the price at which
it is to be redeemed pursuant to this Indenture.

     “Refinancing Debt” means Debt that refunds, refinances, renews, replaces or extends any Debt
permitted to be Incurred by American Commercial Lines or any Restricted Subsidiary pursuant to the
terms of this Indenture, whether involving the same or any other lender or creditor or group of
lenders or creditors, but only to the extent that

     (i) the Refinancing Debt is subordinated to the Notes to at least the same extent as
the Debt being refunded, refinanced or extended, if such Debt was subordinated to the Notes,

     (ii) the Refinancing Debt is scheduled to mature either (a) no earlier than the Debt
being refunded, refinanced or extended or (b) at least 91 days after the maturity date of
the Notes,

     (iii) the Refinancing Debt has a weighted average life to maturity at the time such
Refinancing Debt is Incurred that is either (a) equal to or greater than the weighted
average life to maturity of the Debt being refunded, refinanced, renewed, replaced or
extended or (b) at least 91 days after the maturity date of the Notes,

     (iv) such Refinancing Debt is in an aggregate principal amount that is less than or
equal to the sum of (a) the aggregate principal or accreted amount (in the case of any Debt
issued with original issue discount, as such) then outstanding under the Debt being
refunded, refinanced, renewed, replaced or extended, (b) the amount of accrued and unpaid
interest, if any, and premiums owed, if any, not in excess of preexisting prepayment
provisions on such Debt being refunded, refinanced, renewed, replaced or extended and (c)
the amount of reasonable and customary fees, expenses and costs related to the Incurrence of
such Refinancing Debt, and

     (v) such Refinancing Debt is Incurred by the same Person (or its successor) that
initially Incurred the Debt being refunded, refinanced, renewed, replaced or extended,
except that (i) American Commercial Lines and any Restricted Subsidiary that is a Guarantor
may Incur Refinancing Debt to refund, refinance, renew, replace or extend Debt of any
Restricted Subsidiary of American Commercial Lines that is a Guarantor and (ii) any
Restricted Subsidiary that is not a Guarantor may Incur Refinancing Debt to refund,
refinance, renew, replace or extend Debt of any Restricted Subsidiary that is not a
Guarantor.

     “Registration Rights Agreement” means the Registration Rights Agreement, to be dated the date
of this Indenture, among the Company, the Guarantors and the Initial Purchasers and any similar
agreement entered into in connection with any Additional Notes.

     “Related Asset” means, with respect to a Vessel, (i) any insurance policies and contracts from
time to time in force with respect to such Vessel, (ii) the Capital Interests of any Restricted
Subsidiary of American Commercial Lines owning such Vessel and related assets, (iii) any
requisition compensation payable in respect of any compulsory acquisition thereof, (iv) any
earnings derived from the use or operation thereof and/or any earnings account

-27-

 

with respect to such earnings, (v) any charters, operating leases and related agreements
entered into in respect of such Vessel and any security or guarantee in respect of the charterer’s
or lessee’s obligations under such charter, lease or agreement, (vi) any cash collateral account
established with respect to such Vessel pursuant to the financing arrangement with respect thereto,
(vii) any building, conversion or repair contracts relating to such Vessel and any security or
guarantee in respect of the builder’s obligations under such contract and (viii) any security
interest in, or agreement or assignment relating to, any of the foregoing or any mortgage in
respect of such Vessel.

     “Requirement of Law” means, as to any Person, the certificate or articles of incorporation and
by-laws or other organizational or governing documents of such Person, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental Authority, in each
case binding upon such Person or any of its property or to which such Person or any of its property
is subject.

     “Responsible Officer” means, when used with respect to the Trustee, any officer of the Trustee
within the Corporate Trust Department (or any successor unit or department) of the Trustee assigned
to the Corporate Trust Office of the Trustee and responsible for administering this Indenture, and
also means, with respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of that officer’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this Indenture. The
term “responsible officer” as used in the Section 315(b) and 315(d) of the TIA means any officer of
the Trustee, including any trust officer or assistant trust officer of the Trustee or any person
performing similar functions.

     “Restricted Notes Legend” means the legend identified as such in Exhibit A hereto.

     “Restricted Payment” is defined to mean any of the following:

     (i) any dividend or other distribution declared and paid on the Capital Interests in
American Commercial Lines or on the Capital Interests in any Restricted Subsidiary of
American Commercial Lines that are held by, or declared and paid to, any Person other than
American Commercial Lines or a Restricted Subsidiary of American Commercial Lines; provided
that (a) dividends, distributions or payments, in each case, made solely in Qualified
Capital Interests in American Commercial Lines or any Restricted Subsidiary of American
Commercial Lines; and (b) dividends or distributions payable to a Restricted Subsidiary of
American Commercial Lines or to other holders of Capital Interests of a Restricted
Subsidiary of American Commercial Lines on a pro rata basis shall not be “Restricted
Payments”;

     (ii) any payment made by American Commercial Lines or any of its Restricted
Subsidiaries to purchase, redeem, acquire or retire any Capital Interests in American
Commercial Lines or any of its Restricted Subsidiaries, including any issuance of Debt, in
exchange for such Capital Interests or the conversion or exchange of such Capital Interests
into or for Debt other than any such Capital Interests owned by American Commercial Lines or
any Restricted Subsidiary;

     (iii) any payment made by American Commercial Lines or any of its Restricted
Subsidiaries (other than a payment made solely in Qualified Capital Interests in American
Commercial Lines) to redeem, repurchase, defease (including an in substance or legal
defeasance) or otherwise acquire or retire for value (including pursuant to mandatory
repurchase covenants), (a) prior to any scheduled maturity, scheduled sinking fund or
mandatory redemption payment, Debt of American Commercial Lines or any Guarantor that is
subordinate (whether pursuant to its terms or by operation of law) in right of payment to
the Notes or Note Guarantees (excluding any Debt owed to American Commercial Lines or any
Restricted Subsidiary); except (x) payments of principal in anticipation of satisfying a
sinking fund obligation or final maturity, in each case, within one year of the due date
thereof and (y) any payments in respect of Debt to the extent the issuance of such Debt was
a Restricted Payment and (b) any Debt which would have constituted a Restricted Payment
under clause (ii) above except for the first parenthetical in such clause;

     (iv) any Investment by American Commercial Lines or a Restricted Subsidiary in any
Person, other than a Permitted Investment; and

-28-

 

     (v) any designation of a Restricted Subsidiary as an Unrestricted Subsidiary;

provided that notwithstanding the foregoing clauses (i) through (v), any payments in respect of
Debt, if such Debt was issued prior to the Issue Date or the issuance of such Debt constituted a
Restricted Payment under clause (ii) above shall be deemed not to be Restricted Payments.

     “Restricted Subsidiary” means any Subsidiary that has not been designated as an “Unrestricted
Subsidiary” in accordance with this Indenture.

     “Sale and Leaseback Transaction” means any direct or indirect arrangement pursuant to which
property is sold or transferred by American Commercial Lines or a Restricted Subsidiary and is
thereafter leased back as a capital lease by American Commercial Lines or a Restricted Subsidiary.

     “Secured Parties” has the meaning set forth in the Security Agreement.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Security Agreement” means the security agreement to be dated as of the Issue Date between the
Collateral Agent, the Company and the Guarantors, as amended, modified, restated, supplemented or
replaced from time to time in accordance with its terms.

     “Security Documents” means the Security Agreement, the Pledge Agreement, the Fleet Mortgages,
any Mortgages, deeds of trust, deeds to secure debt, the Intercreditor Agreement and all of the
security agreements, pledges, collateral assignments, mortgages, deeds of trust, trust deeds or
other instruments evidencing or creating or purporting to create any security interests in favor of
the Collateral Agent for its benefit and for the benefit of the Trustee and the Holders of the
Notes and the holders of any Permitted Additional Pari Passu Obligations, in all or any portion of
the Collateral, as amended, modified, restated, supplemented or replaced from time to time.

     “Security Interests” means the Liens on the Collateral created by the Security Documents in
favor of the Collateral Agent for its benefit and for the benefit of the Secured Parties.

     “Security Trustee” has the meaning set forth in Section 6.12(a) hereto.

     “Senior Discharge Date” has the meaning set forth in the Intercreditor Agreement.

     “Senior Secured Note Documents” means this Indenture, Notes, the Note Guarantees and the
Security Documents.

     “Significant Subsidiary” has the meaning set forth in Rule 1-02 of Regulation S-X under the
Securities Act and Exchange Act, but shall not include any Unrestricted Subsidiary.

     “Standard Securitization Undertakings” means representations, warranties, covenants and
indemnities entered into by American Commercial Lines or any Restricted Subsidiary which are
reasonably customary in an accounts receivable securitization transaction as determined in good
faith by the Board of Directors of American Commercial Lines, including Guarantees by American
Commercial Lines or any Restricted Subsidiary of any of the foregoing obligations of American
Commercial Lines or a Restricted Subsidiary.

     “Stated Maturity,” when used with respect to (i) any Note or any installment of interest
thereon, means the date specified in such Note as the fixed date on which the principal amount of
such Note or such installment of interest is due and payable and (ii) any other Debt or any
installment of interest thereon, means the date specified in the instrument governing such Debt as
the fixed date on which the principal of such Debt or such installment of interest is due and
payable.

-29-

 

     “Subsidiary” means, with respect to any Person, any corporation, limited or general
partnership, trust, association or other business entity of which an aggregate of at least a
majority of the outstanding Capital Interests therein is, at the time, directly or indirectly,
owned by such Person and/or one or more Subsidiaries of such Person.

     “Subsidiary Guarantor” means any Guarantor that is not a Parent Guarantor.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended, as in
effect on the date hereof.

     “Total Assets” means the total assets of American Commercial Lines and its Restricted
Subsidiaries on a consolidated basis, determined in accordance with GAAP, as of the last day of the
most recently ended fiscal quarter of the Company for which internal financial statements are
available.

     “Transfer Restricted Notes” means Notes that bear or are required to bear the Restricted Notes
Legend.

     “Treasury Rate” means with respect to the Notes, as of the applicable redemption date, the
yield to maturity as of such redemption date of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15
(519) that has become publicly available at least two Business Days prior to such redemption date
(or, if such Statistical Release is no longer published, any publicly available source of similar
market data)) most nearly equal to the period from such redemption date to July 15, 2013; provided,
however, that if the period from such redemption date to July 15, 2013 is less than one year, the
weekly average yield on actually traded United States Treasury securities adjusted to a constant
maturity of one year will be used.

     “Trust Monies” means all cash and Eligible Cash Equivalents received by the Trustee:

     (i) upon the release of Collateral from the Lien of this Indenture or the Security
Documents, including all Net Cash Proceeds and Net Loss Proceeds and all moneys received in
respect of the principal of all purchase money, governmental and other obligations;

     (ii) pursuant to the Security Documents;

     (iii) as proceeds of any sale or other disposition of all or any part of the Collateral
by or on behalf of the Trustee or any collection, recovery, receipt, appropriation or other
realization of or from all or any part of the Collateral pursuant to this Indenture or any
of the Security Documents or otherwise; or

     (iv) for application as provided in the relevant provisions of this Indenture or any
Security Document or which disposition is not otherwise specifically provided for in this
Indenture or in any Security Document; provided, however, that Trust Monies shall in no
event include any property deposited with the Trustee for any redemption, legal defeasance
or covenant defeasance of Notes, for the satisfaction and discharge of this Indenture or to
pay the purchase price of Notes pursuant to an Offer to Purchase in accordance with the
terms of this Indenture and shall not include any cash received or applicable by the Trustee
in payment of its fees and expenses (or, prior to the Senior Discharge Date, any
Collateral).

     “Trustee” has the meaning set forth in the preamble to this Indenture until a successor
replaces it in accordance with the applicable provisions of this Indenture and, thereafter, means
the successor.

     “UCC” means the Uniform Commercial Code (or any successor statute) as in effect from time to
time in the State of New York; provided, however, that, at any time, if by reason of mandatory
provisions of law, any or all of the perfection or priority of the Collateral Agent’s security
interest in any item or portion of the Collateral is governed by the Uniform Commercial Code as in
effect in a jurisdiction other that the State of New York, the term “UCC” shall mean the Uniform
Commercial Code as in effect, at such time, in such other jurisdiction for purposes of the
provisions hereof relating to such perfection or priority and for purposes of definitions relating
to such provisions.

-30-

 

     “Unrestricted Subsidiary” means:

     (1) any Subsidiary designated as such by the Board of Directors of the Company in
compliance with Section 4.21; and

     (2) any Subsidiary of an Unrestricted Subsidiary.

     “Vessel” means one or more shipping vessels whose primary purpose is the maritime
transportation of cargo or which are otherwise engaged, used or useful in any business activities
of American Commercial Lines and its Restricted Subsidiaries and which are owned by and registered
(or to be owned by and registered) in the name of American Commercial Lines or any of its
Restricted Subsidiaries or operated (or to be operated) by American Commercial Lines or any of its
Restricted Subsidiaries pursuant to a charter or other operating agreement constituting a Capital
Lease Obligation, in each case together with all related spares, equipment and any additions or
improvements.

     “Voting Interests” means, with respect to any Person, securities of any class or classes of
Capital Interests in such Person entitling the holders thereof generally to vote on the election of
members of the Board of Directors or comparable body of such Person.

     SECTION 1.2 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	 
	 	 	 	 
	“Act”
	 	 	13.14	 
	“Affiliate Transaction”
	 	 	4.11	 
	“Agent Members”
	 	 	2.6	 
	“Change of Control Offer”
	 	 	4.14	 
	“Change of Control Payment”
	 	 	4.14	 
	“covenant defeasance”
	 	 	8.3	 
	“Custodian”
	 	 	6.1	 
	“defeasance”
	 	 	8.3	 
	“Discharge”
	 	 	8.8	 
	“Event of Default”
	 	 	6.1	 
	“Event of Loss Offer”
	 	 	4.16	 
	“Excess Loss Proceeds”
	 	 	4.16	 
	“Excess Proceeds”
	 	 	4.10	 
	“Expiration Date”
	 	 	3.9	 
	“Independent Financial Adviser”
	 	 	4.11	(iii)
	“Issuer Order”
	 	 	2.2	 
	“legal defeasance”
	 	 	8.2	 
	“Note Register”
	 	 	2.3	 
	“Offer Amount”
	 	 	3.9	 
	“Purchase Date”
	 	 	3.9	 
	“QIB”
	 	 	2.1	 
	“QIB Global Note”
	 	 	2.1	 
	“redemption date”
	 	 	3.1	 
	“Released Trust Monies”
	 	 	11.4	 
	“Registrar”
	 	 	2.3	 
	“Regulation S”
	 	 	2.1	 
	“Regulation S Global Note”
	 	 	2.1	 
	“Replacement Assets”
	 	 	11.4	 
	“Rule 144A”
	 	 	2.1	 
	“Subject Property”
	 	 	4.16	 
	“Surviving Entity”
	 	 	5.1	 

-31-

 

     SECTION 1.3 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in, and made a part of, this Indenture.

     The following TIA term used in this Indenture has the following meaning:

     “obligor” on the Notes means the Issuer, the Guarantors and any successor obligor upon the
Notes.

     Unless otherwise defined herein, all other terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by the Commission rule under the
TIA have the meanings so assigned to them therein.

     SECTION 1.4 Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it herein;

     (2) an accounting term not otherwise defined herein has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural include the singular;

     (5) unless otherwise specified, any reference to Section or Article refers to such
Section or Article of this Indenture;

     (6) provisions apply to successive events and transactions;

     (7) references to sections of or rules under the Securities Act, the Exchange Act or
the TIA shall be deemed to include substitute, replacement or successor sections or rules
adopted by the Commission from time to time; and

     (8) for the avoidance of doubt, any reference to “interest” shall include any
Additional Interest (as defined in the Registration Rights Agreement) that may be payable.

ARTICLE II

THE NOTES

     SECTION 2.1 Form and Dating.

     The Notes and the Trustee’s certificate of authentication shall be substantially in the form
of Exhibit A attached hereto. The Notes may have notations, legends or endorsements
required by law, stock exchange rule or usage. Each Note shall be dated the date of its
authentication. The Notes initially shall be issued only in denominations of $2,000 and any
integral multiple of $1,000 in excess thereof.

     The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Issuer, the Guarantors and the Trustee, by their execution
and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be controlling.

-32-

 

     (a) The Notes shall be issued initially in the form of one or more permanent Global
Notes substantially in the form of Exhibit A attached hereto and shall be deposited
on behalf of the purchasers of the Notes represented thereby with the Trustee as custodian
for the Depositary, and registered in the name of the Depositary or a nominee of the
Depositary, duly executed by the Issuer and authenticated by the Trustee as hereinafter
provided.

     Each Global Note shall represent such of the outstanding Notes as shall be specified
therein and each shall provide that it shall represent the aggregate amount of outstanding
Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes
represented thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, redemptions and transfers of interests. Any endorsement of a Global Note
to reflect the amount of any increase or decrease in the amount of outstanding Notes
represented thereby shall be made by the Trustee or the Note Custodian, at the direction of
the Trustee, in accordance with written instructions given by the Holder thereof as required
by Section 2.6 hereof.

     Except as set forth in Section 2.6 hereof, the Global Notes may be transferred, in
whole and not in part, only to another nominee of the Depositary or to a successor of the
Depositary or its nominee.

     (b) The Initial Notes are being issued by the Issuer only (i) to “qualified
institutional buyers” (as defined in Rule 144A under the Securities Act (“Rule 144A”))
(“QIBs”) or (ii) in reliance on Regulation S under the Securities Act (“Regulation S”).
After such initial offers, Initial Notes that are Transfer Restricted Notes may be
transferred to QIBs, in reliance on Rule 144A, outside the United States pursuant to
Regulation S or to the Company, in accordance with Section 2.16. Initial Notes that are
offered in reliance on Rule 144A shall be issued in the form of one or more permanent Global
Notes substantially in the form set forth in Exhibit A (the “QIB Global Note”)
deposited with the Trustee, as Notes Custodian, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. Initial Notes that are offered in
offshore transactions in reliance on Regulation S shall be issued in the form of one or more
Global Notes substantially in the form set forth in Exhibit A (the “Regulation S
Global Note”) deposited with the Trustee, as Notes Custodian, duly executed by the Company
and authenticated by the Trustee as hereinafter provided. The QIB Global Note and the
Regulation S Global Note shall each be issued with separate CUSIP numbers. The aggregate
principal amount of each Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as Notes Custodian. Transfers of Notes
between QIBs and to or by purchasers pursuant to Regulation S shall be represented by
appropriate increases and decreases to the respective amounts of the appropriate Global
Notes, as more fully provided in Section 2.16.

     (c) Section 2.1(b) shall apply only to Global Notes deposited with or on behalf of the
Depositary.

     The Issuer shall execute and the Trustee shall, upon receipt of an Issuer Order, in
accordance with Section 2.1(b) and Section 2.2, authenticate and deliver the Global Notes
that (i) shall be registered in the name of the Depositary or the nominee of the Depositary
and (ii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instructions or held by the Trustee as custodian for the Depositary.

     The Trustee shall have no responsibility or obligation to any Holder, any member of (or
a participant in) DTC or any other Person with respect to the accuracy of the records of DTC
(or its nominee) or of any participant or member thereof, with respect to any ownership
interest in the Notes or with respect to the delivery of any notice (including any notice of
redemption) or the payment of any amount or delivery of any Notes (or other security or
property) under or with respect to the Notes. The Trustee may rely (and shall be fully
protected in relying) upon information furnished by DTC with respect to its members,
participants and any Beneficial Owners in the Notes.

     (d) Notes issued in certificated form, including Global Notes, shall be substantially
in the form of Exhibit A attached hereto.

-33-

 

     (e) Each Note issued hereunder that has more than a de minimis amount of original issue
discount for U.S. federal income tax purposes shall bear the OID Legend in substantially the
form set forth in Exhibit A.

     SECTION 2.2 Execution and Authentication.

     An Officer shall sign the Notes for the Issuer by manual or facsimile signature.

     If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note shall nevertheless be valid.

     A Note shall not be valid until authenticated by the manual or facsimile signature of an
authorized signatory of the Trustee. The signature shall be conclusive evidence that the Note has
been authenticated under this Indenture.

     The Trustee shall, upon a written order of the Issuer signed by one Officer directing the
Trustee to authenticate and deliver the Notes and certifying that all conditions precedent to the
issuance of the Notes contained herein have been complied with (an “Issuer Order”), authenticate
Notes for original issue up to the aggregate principal amount stated in paragraph 4 of the Notes.
The aggregate principal amount of Notes outstanding at any time may not exceed such amount except
as provided in Section 2.17 hereof.

     The Trustee may appoint an authenticating agent reasonably acceptable to the Issuer to
authenticate Notes. Unless limited by the terms of such appointment, an authenticating agent may
authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as an Agent to deal with Holders or the Issuer or an Affiliate of the Issuer.

     SECTION 2.3 Registrar; Paying Agent.

     The Issuer shall maintain (i) an office or agency where Notes may be presented for
registration of transfer or for exchange (“Registrar”) and (ii) an office or agency where Notes may
be presented for payment to a Paying Agent. The Registrar shall keep a register of the Notes (the
“Note Register”) and of their transfer and exchange. The Issuer may appoint one or more
co-registrars and one or more additional paying agents; provided, however, that at all times there
shall be only one Note Register. The term “Registrar” includes any co-registrar and the term
“Paying Agent” includes any additional paying agent. The Issuer may change any Paying Agent or
Registrar without notice to any Holder. The Issuer shall notify the Trustee in writing of the name
and address of any Paying Agent not a party to this Indenture. The Issuer, American Commercial
Lines or any of its Affiliates may act as Paying Agent or Registrar.

     The Issuer shall notify the Trustee and the Holders of the name and address of any Paying
Agent not a party to this Indenture. The Issuer shall enter into an appropriate agency agreement
with any Agent not a party to this Indenture, which shall incorporate the provisions of Section
317(b) of the TIA. The agreement shall implement the provisions of this Indenture that relate to
such Agent.

     The Issuer initially appoints the Trustee to act as the Registrar and Paying Agent and
initially appoints the Corporate Trust Office of the Trustee as the office or agency of the Company
for such purposes and as the office or agency of the Company where notices and demands to or upon
the Issuer in respect of the Notes and this Indenture may be served and the Trustee as the agent of
the Issuer to receive such notices and demands.

     The Issuer initially appoints DTC to act as the Depositary with respect to the Global Notes.

     SECTION 2.4 Paying Agent To Hold Money in Trust.

     The Issuer shall require each Paying Agent other than the Trustee to agree in writing that the
Paying Agent shall hold in trust for the benefit of the Holders or the Trustee all money held by
the Paying Agent for the payment

-34-

 

of principal, premium, if any, or interest on the Notes, and shall notify the Trustee of any
Default by the Issuer in making any such payment. While any such Default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee. The Issuer at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the
Trustee, the Paying Agent shall have no further liability for the money. If the Issuer or an
Affiliate of the Issuer acts as Paying Agent, it shall segregate and hold in a separate trust fund
for the benefit of the Holders all money held by it as Paying Agent. Upon the occurrence of events
specified in Section 6.1(8) hereof, the Trustee shall serve as Paying Agent for the Notes.

     SECTION 2.5 Holder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at least
seven (7) Business Days before each interest payment date and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of the Holders, including the aggregate principal amount of the
Notes held by each Holder thereof, and the Issuer shall otherwise comply with TIA § 312(a).

     SECTION 2.6 Book-Entry Provisions for Global Securities.

     (a) Each Global Note shall (i) be registered in the name of the Depositary for such Global
Notes or the nominee of such Depositary, (ii) be delivered to the Trustee as custodian for such
Depositary and (iii) bear legends as required by Section 2.6(e).

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Note held on their behalf by the Depositary, or the
Trustee as its custodian, or under the Global Note, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such
Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee, from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or impair, as
between the Depositary and its Agent Members, the operation of customary practices governing the
exercise of the rights of a Holder of any Note.

     (b) Transfers of a Global Note shall be limited to transfers of such Global Note in whole, but
not in part, to the Depositary, its successors or their respective nominees. Interests of
Beneficial Owners in a Global Note may be transferred in accordance with Section 2.16 and the rules
and procedures of the Depositary. In addition, Certificated Notes shall be transferred to all
Beneficial Owners in exchange for their beneficial interests if (i) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for the Global Notes or the
Depositary ceases to be a “clearing agency” registered under the Exchange Act and a successor
depositary is not appointed by the Company within ninety (90) days of such notice or (ii) an Event
of Default of which a Responsible Officer of the Trustee has actual notice has occurred and is
continuing and the Registrar has received a request from the Depositary to issue such Certificated
Notes.

     (c) In connection with the transfer of the entire Global Note to beneficial owners pursuant to
clause (b) of this Section, such Global Note shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall upon receipt of an Issuer Order
authenticate and deliver, to each Beneficial Owner identified by the Depositary in exchange for its
beneficial interest in such Global Note an equal aggregate principal amount of Certificated Notes
of authorized denominations.

     (d) The registered holder of a Global Note may grant proxies and otherwise authorize any
person, including Agent Members and persons that may hold an interest through Agent Members, to
take any action which a Holder is entitled to take under this Indenture or the Notes.

     (e) Each Global Note shall bear the Global Note Legend on the face thereof.

-35-

 

     (f) At such time as all beneficial interests in Global Notes have been exchanged for
Certificated Notes, redeemed, repurchased or cancelled, all Global Notes shall be returned to or
retained and cancelled by the Trustee in accordance with Section 2.11 hereof. At any time prior to
such cancellation, if any beneficial interest in a Global Note is exchanged for Certificated Notes,
redeemed, repurchased or cancelled, the principal amount of Notes represented by such Global Note
shall be reduced accordingly and an endorsement shall be made on such Global Note, by the Trustee
or the Note Custodian, at the direction of the Trustee, to reflect such reduction.

     (g) General provisions relating to transfers and exchanges:

     (i) To permit registrations of transfers and exchanges, the Issuer shall execute and
the Trustee shall authenticate Global Notes and Certificated Notes at the Registrar’s
request.

     (ii) No service charge shall be made to a Holder for any registration of transfer or
exchange, but the Issuer may require payment of a sum sufficient to cover any stamp or
transfer tax or similar governmental charge payable in connection therewith (other than any
such stamp or transfer taxes or similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.2, 2.10, 3.6, 4.10, 4.14, 4.16 and 9.5 hereto).

     (iii) All Global Notes and Certificated Notes issued upon any registration of transfer
or exchange of Global Notes or Certificated Notes shall, upon execution by the Company and
authentication by the Trustee in accordance with the provisions hereof, be the valid
obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Global Notes or Certificated Notes surrendered upon such registration
of transfer or exchange.

     (iv) The Registrar shall not be required (A) to issue, to register the transfer of or
to exchange Notes during a period beginning at the opening of fifteen (15) days before the
day of any selection of Notes for redemption under Section 3.2 hereof and ending at the
close of business on the day of selection, (B) to register the transfer of or to exchange
any Note so selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part, or (C) to register the transfer of or to exchange a Note
between a record date and the next succeeding interest payment date.

     (v) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Issuer may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and neither the Trustee,
any Agent nor the Issuer shall be affected by notice to the contrary.

     (vi) The Trustee shall authenticate Global Notes and Certificated Notes in accordance
with the provisions of Section 2.2 hereof. Except as provided in Section 2.6(b), neither
the Trustee nor the Registrar shall authenticate or deliver any Certificated Note in
exchange for a Global Note.

     (vii) Each Holder agrees to provide reasonable indemnity to the Issuer and the Trustee
against any liability that may result from the transfer, exchange or assignment of such
Holder’s Note in violation of any provision of this Indenture and/or applicable United
States federal or state securities law.

     (viii) The Trustee shall have no obligation or duty to monitor, determine or inquire as
to compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Note (including any
transfers between or among Agent Members or Beneficial Owners of interests in any Global
Note) other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly required by the
terms of, this Indenture, and to examine the same to determine substantial compliance as to
form with the express requirements hereof.

-36-

 

     SECTION 2.7 Replacement Notes.

     If any mutilated Note is surrendered to the Trustee, or the Issuer and the Trustee receive
evidence to their satisfaction of the destruction, loss or theft of any Note, the Issuer shall
issue and the Trustee, upon receipt of an Issuer Order, shall authenticate a replacement Note if
the Trustee’s requirements are met. If required by the Trustee or the Issuer, an indemnity bond
must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Issuer to
protect the Issuer, the Trustee, any Agent and any authenticating agent from any loss that any of
them may suffer if a Note is replaced. The Issuer and the Trustee may charge a Holder for their
expenses in replacing a Note.

     Every replacement Note is an additional obligation of the Issuer and shall be entitled to all
of the benefits of this Indenture equally and proportionately with all other Notes duly issued
hereunder.

     SECTION 2.8 Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those cancelled by it, those delivered to it for cancellation, those reductions in the interest in
a Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.8 as not outstanding. Except as set forth in Section 2.9 hereof, a Note does not
cease to be outstanding because the Issuer or an Affiliate of the Issuer holds the Note.

     If a Note is replaced pursuant to Section 2.7 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

     If the principal amount of any Note is considered paid under Section 4.1 hereof, it ceases to
be outstanding and interest on it ceases to accrue.

     If the Paying Agent holds, on a redemption date or maturity date, money sufficient to pay
Notes payable on that date, then on and after that date such Notes shall be deemed to be no longer
outstanding and shall cease to accrue interest.

     SECTION 2.9 Treasury Notes.

     In determining whether the Holders of the required aggregate principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Issuer or by any Affiliate of the
Issuer shall be considered as though not outstanding, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only
Notes shown on the Note Register as being owned shall be so disregarded. Notwithstanding the
foregoing, Notes that are to be acquired by the Issuer or an Affiliate of the Issuer pursuant to an
exchange offer, tender offer or other agreement shall not be deemed to be owned by such entity
until legal title to such Notes passes to such entity.

     SECTION 2.10 Temporary Notes.

     Until Certificated Notes are ready for delivery, the Issuer may prepare and the Trustee shall,
upon receipt of an Issuer Order, authenticate temporary Notes. Temporary Notes shall be
substantially in the form of Certificated Notes but may have variations that the Issuer considers
appropriate for temporary Notes. Without unreasonable delay, the Issuer shall prepare and the
Trustee shall, upon receipt of an Issuer Order, authenticate Certificated Notes in exchange for
temporary Notes.

     Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

     SECTION 2.11 Cancellation.

     The Issuer at any time may deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder or which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered

-37-

 

shall be promptly cancelled by the Trustee. All Notes surrendered for registration of
transfer, exchange or payment, if surrendered to any Person other than the Trustee, shall be
delivered to the Trustee. The Trustee and no one else shall cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation. Subject to Section 2.7
hereof, the Issuer may not issue new Notes to replace Notes that they have redeemed or paid or that
have been delivered to the Trustee for cancellation. All cancelled Notes held by the Trustee shall
be disposed of in accordance with its customary practice, and, upon request, certification of their
disposal delivered to the Issuer, unless by a written order, signed by an Officer of the Issuer,
the Issuer shall direct that cancelled Notes be returned to it.

     SECTION 2.12 Defaulted Interest.

     If the Issuer defaults in a payment of interest on the Notes, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, which date shall be
at the earliest practicable date but in all events at least five (5) Business Days prior to the
payment date, in each case at the rate provided in the Notes and in Section 4.1 hereof. The Issuer
shall fix or cause to be fixed each such special record date and payment date and shall promptly
thereafter notify the Trustee in writing of any such date. At least fifteen (15) days before the
special record date, the Issuer (or the Trustee, in the name and at the expense of the Issuer)
shall mail or cause to be mailed to Holders a notice that states the special record date, the
related payment date and the amount of such interest to be paid.

     SECTION 2.13 Record Date.

     The record date for purposes of determining the identity of Holders entitled to vote or
consent to any action by vote or consent authorized or permitted under this Indenture shall be
determined as provided for in TIA § 316 (c).

     SECTION 2.14 Computation of Interest.

     Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve
30-day months.

     SECTION 2.15 CUSIP Number.

     The Issuer in issuing the Notes may use a “CUSIP” and/or ISIN or other similar number, and if
it does so, the Company may use the CUSIP and/or ISIN or other similar number in notices of
redemption or exchange as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness or accuracy of the CUSIP and/or ISIN or other similar
number printed in the notice or on the Notes and that reliance may be placed only on the other
identification numbers printed on the Notes. The Issuer shall promptly notify the Trustee of any
change in the CUSIP and/or ISIN or other similar number.

     SECTION 2.16 Special Transfer
Provisions.

     Unless and until a Transfer Restricted Note is transferred or exchanged pursuant to an
exemption under the Securities Act or under an effective registration statement under the
Securities Act, the following provisions shall apply:

     (a) Transfers to QIBs. The following provisions shall apply with respect to
the registration of any proposed transfer of a Transfer Restricted Note (other than pursuant
to Regulation S):

     (i) The Registrar shall register the transfer of a Transfer Restricted Note by
a Holder to a QIB if such transfer is being made by a proposed transferor who has
provided the Registrar with (a) an appropriately completed certificate of transfer
in the form attached to the Note and (b) a letter substantially in the form set
forth in Exhibit C hereto.

     (ii) If the proposed transferee is an Agent Member and the Transfer Restricted
Note to be transferred consists of an interest in the Regulation S Global Note, upon
receipt by the Registrar of (x) the items required by paragraph (i) above and (y)
instructions given in accordance with

-38-

 

the Depositary’s and the Registrar’s procedures therefor, the Registrar
shall reflect on its books and records the date and an increase in the principal
amount of the QIB Global Note in an amount equal to the principal amount of the
beneficial interest in the Regulation S Global Note to be so transferred, and the
Registrar shall reflect on its books and records the date and an appropriate
decrease in the principal amount of such Regulation S Global Note.

     (b) Transfers Pursuant to Regulation S. The Registrar shall register the
transfer of any Regulation S Global Note without requiring any additional certification.
The following provisions shall apply with respect to registration of any proposed transfer
of a Transfer Restricted Note pursuant to Regulation S:

     (i) The Registrar shall register any proposed transfer of a Transfer Restricted
Note pursuant to Regulation S by a Holder upon receipt of (a) an appropriately
completed certificate of transfer in the form attached to the Note and (b) a letter
substantially in the form set forth in Exhibit D hereto from the proposed
transferor.

     (ii) If the proposed transferee is an Agent Member holding a beneficial
interest in a QIB Global Note and the Transfer Restricted Note to be transferred
consists of an interest in a QIB Global Note, upon receipt by the Registrar of (x)
the letter, if any, required by paragraph (i) above and (y) instructions in
accordance with the Depositary’s and the Registrar’s procedures therefor, the
Registrar shall reflect on its books and records the date and an increase in the
principal amount of the Regulation S Global Note in an amount equal to the principal
amount of the beneficial interest in the QIB Global Note to be transferred, and the
Registrar shall reflect on its books and records the date and an appropriate
decrease in the principal amount of the QIB Global Note.

     (c) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance
with the Registration Rights Agreement, the Issuer shall issue and, upon receipt of an
authentication order in accordance with Section 2.2, the Trustee shall authenticate, one or
more Global Notes not bearing the Restricted Notes Legend in an aggregate principal amount
equal to the principal amount of the beneficial interests in the Global Notes that are
Transfer Restricted Notes tendered for acceptance in accordance with the Exchange Offer and
accepted for exchange in the Exchange Offer.

     (d) Transfer Restricted Notes. Concurrently with the issuance of such Global
Notes, the Registrar shall cause the aggregate principal amount of the applicable Transfer
Restricted Notes to be reduced accordingly, and the Registrar shall deliver to the Persons
designated by the Holders of Transfer Restricted Notes so accepted Global Notes not bearing
the Restricted Notes Legend in the appropriate principal amount.

     (e) Restricted Notes Legend. Upon the transfer, exchange or replacement of
Notes not bearing the Restricted Notes Legend, the Registrar shall deliver Notes that do not
bear the Restricted Notes Legend. Upon the transfer, exchange or replacement of Notes
bearing the Restricted Notes Legend, the Registrar shall deliver only Notes that bear the
Restricted Notes Legend unless there is delivered to the Registrar an Opinion of Counsel
reasonably satisfactory to the Issuer and the Trustee to the effect that neither such legend
nor the related restrictions on transfer are required in order to maintain compliance with
the provisions of the Securities Act. Upon request by any Holder, the Company shall
cooperate to have the Restricted Notes Legend removed if the Company has determined such
Legend is no longer required.

     (f) General. By its acceptance of any Note bearing the Restricted Notes
Legend, each Holder of such a Note acknowledges the restrictions on transfer of such Note
set forth in this Indenture and in the Restricted Notes Legend and agrees that it shall
transfer such Note only as provided in this Indenture.

     The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to this Section 2.16.

-39-

 

     SECTION 2.17 Issuance of Additional
Notes.

     The Company shall be entitled to issue Additional Notes under this Indenture that shall have
identical terms as the Initial Notes, other than with respect to the date of issuance, issue price,
amount of interest payable on the first interest payment date applicable thereto and any customary
escrow provisions (and, if such Additional Notes shall be issued in the form of Transfer Restricted
Notes, other than with respect to transfer restrictions, any Registration Rights Agreement and
additional interest with respect thereto); provided that such issuance is not otherwise prohibited
by the terms of this Indenture, including Section 4.9. The Initial Notes and any Additional Notes
and all Exchange Notes shall be treated as a single class for all purposes under this Indenture.

     With respect to any Additional Notes, the Company shall set forth in a resolution of its Board
of Directors and in an Officers’ Certificate, a copy of each of which shall be delivered to the
Trustee, the following information:

     (1) the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture;

     (2) the issue price, the Issue Date, the CUSIP number of such Additional Notes, the
first interest payment date and the amount of interest payable on such first interest
payment date applicable thereto and the date from which interest shall accrue; and

     (3) whether such Additional Notes shall be Transfer Restricted Notes.

ARTICLE III

REDEMPTION AND PREPAYMENT

     SECTION 3.1 Notices to Trustee.

     If the Issuer elects to redeem Notes pursuant to the optional redemption provisions of Section
3.7 hereof, it shall furnish to the Trustee, at least forty-five (45) days (or such shorter period
as is acceptable to the Trustee) before a date fixed for redemption (the “redemption date”), an
Officers’ Certificate setting forth (i) the section of this Indenture pursuant to which the
redemption shall occur, (ii) the redemption date, (iii) the principal amount of Notes to be
redeemed and (iv) the Redemption Price.

     SECTION 3.2 Selection of Notes To Be Redeemed.

     If less than all of the Notes are to be redeemed at any time, the Trustee shall select the
Notes to be redeemed among the Holders in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed or, if the Notes are not so
listed, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate (and in a manner that complies with applicable legal requirements); provided that no
Notes of $2,000 or less shall be redeemed in part. On and after the redemption date, interest
shall cease to accrue on Notes or portions of them called for redemption. The Trustee shall make
the selection from the Notes outstanding and not previously called for redemption and shall
promptly notify the Issuer in writing of the Notes selected for redemption. The Trustee may select
for redemption portions (equal to $1,000 or any integral multiple thereof) of the principal of the
Notes that have denominations larger than $2,000.

     SECTION 3.3 Notice of Redemption.

     Subject to the provisions of Section 3.9, at least 30 days but not more than 60 days before a
redemption date, the Issuer shall mail or cause to be mailed by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed.

     The notice shall identify the Notes to be redeemed and shall state:

     (1) the redemption date;

-40-

 

     (2) the Redemption Price;

     (3) if any Note is being redeemed in part, the portion of the principal amount of such
Notes to be redeemed and that, after the redemption date, upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion shall be issued upon
cancellation of the original Note;

     (4) the name, telephone number and address of the Paying Agent;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price;

     (6) that, unless the Issuer defaults in making such redemption payment, interest, if
any, on Notes called for redemption ceases to accrue on and after the redemption date;

     (7) the paragraph of the Notes and/or Section of this Indenture pursuant to which the
Notes called for redemption are being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

     At the Issuer’s written request, the Trustee shall give the notice of redemption in the
Issuer’s name and at the Issuer’s expense; provided, however, that the Issuer shall have delivered
to the Trustee at least 45 days prior to the redemption date (or such shorter period as is
acceptable to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice
and setting forth the information to be stated in the notices as provided in the preceding
paragraph. The notice mailed in the manner herein provided shall be conclusively presumed to have
been duly given whether or not a Holder receives such notice. In any case, failure to give such
notice by mail or any defect in the notice to the Holder of any Note shall not affect the validity
of the proceeding for the redemption of any other Note.

     SECTION 3.4 Effect of Notice of
Redemption.

     Once notice of redemption is mailed in accordance with Section 3.3 hereof, Notes called for
redemption become irrevocably due and payable on the redemption date at the Redemption Price plus
accrued and unpaid interest, if any, to such date. A notice of redemption may not be conditional.

     SECTION 3.5 Deposit of Redemption of Purchase Price.

     On or before 11:00 a.m. (New York City time) on each redemption date or the date on which
Notes must be accepted for purchase pursuant to Section 4.10, 4.14 or 4.16, the Issuer shall
deposit with the Trustee or with the Paying Agent (or, if the Company or an Affiliate is acting as
a Paying Agent, shall segregate and hold in trust as provided in Section 2.4 hereof) money
sufficient to pay the Redemption Price of and accrued and unpaid interest, if any, on all Notes to
be redeemed or purchased on that date. The Trustee or the Paying Agent shall promptly return to
the Issuer any money deposited with the Trustee or the Paying Agent by the Issuer in excess of the
amounts necessary to pay the Redemption Price of (including any applicable premium), and accrued
interest, if any, on, all Notes to be redeemed or purchased.

     SECTION 3.6 Notes Redeemed in Part.

     Upon surrender of a Note that is redeemed in part, the Issuer shall issue and, upon receipt of
an Issuer Order, the Trustee shall authenticate for the Holder at the expense of the Issuer a new
Note equal in principal amount to the unredeemed portion of the Note surrendered.

     SECTION 3.7 Optional Redemption.

     (a) The Notes may be redeemed, in whole or in part, at any time prior to July 15, 2013, at the
option of the Company upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each Hold-

-41-

 

er’s registered address, at a Redemption Price equal to 100% of the principal amount of the
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to but
not including, the applicable redemption date (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment date).

     (b) The Notes are subject to redemption, at the option of the Issuer, in whole or in part, at
any time on or after July 15, 2013, upon not less than 30 nor more than 60 days’ notice mailed by
first-class mail to each Holder’s registered address at the following Redemption Prices (expressed
as percentages of the principal amount to be redeemed) set forth below, plus accrued and unpaid
interest, if any, to, but not including, the redemption date (subject to the right of Holders of
record on the relevant regular record date to receive interest due on an interest payment date), if
redeemed during the 12-month period beginning July 15 of the years indicated:

	 	 	 	 	 
	 	 	Redemption
	Year	 	Price
	2013
	 	 	106.250	%
	2014
	 	 	103.125	%
	2015 and thereafter
	 	 	100.000	%

     (c) In addition to the optional redemption of the Notes in accordance with the provisions of
the preceding paragraphs (a) and (b), prior to July 15, 2012, the Issuer may, with the net proceeds
of one or more Qualified Equity Offerings, redeem up to 35% of the aggregate principal amount of
the outstanding Notes (including Additional Notes) at a Redemption Price equal to 112.50% of the
principal amount thereof, plus with accrued and unpaid interest thereon, if any, to the date of
redemption; provided that at least 65% of the principal amount of the Notes then outstanding
(including Additional Notes) remains outstanding immediately after the occurrence of any such
redemption (excluding Notes held by American Commercial Lines or its Subsidiaries) and that any
such notice of redemption occurs within 90 days following the closing of any such Qualified Equity
Offering.

     SECTION 3.8 Mandatory Redemption.

     Except as set forth under Sections 4.10, 4.14 and 4.16 hereof, the Issuer shall not be
required to make mandatory redemption or sinking fund payments with respect to the Notes.

     SECTION 3.9 Offer To Purchase.

     In the event that the Issuer shall be required to commence an Offer to Purchase pursuant to an
Asset Sale Offer, Event of Loss Offer or a Change of Control Offer, the Issuer shall follow the
procedures specified below.

     Unless otherwise required by applicable law, an Offer to Purchase shall specify an Expiration
Date of the Offer to Purchase, which shall be, subject to any contrary requirements of applicable
law, not less than 30 days or more than 60 days after the date of mailing of such Offer, and a
settlement date (the “Purchase Date”) for purchase of Notes within five Business Days after the
Expiration Date. On the Purchase Date, the Company shall purchase the aggregate principal amount
of Notes required to be purchased pursuant to Section 4.10, Section 4.14 or Section 4.16 hereof
(the “Offer Amount”), or if less than the Offer Amount has been tendered, all Notes tendered in
response to the Offer to Purchase. If the Purchase Date is on or after the interest record date
and on or before the related interest payment date, any accrued and unpaid interest, if any, shall
be paid to the Person in whose name a Note is registered at the close of business on such record
date, and no additional interest, if any, shall be payable to the Holders who tender Notes pursuant
to the Offer to Purchase. The Company shall notify the Trustee at least 5 days (or such shorter
period as is acceptable to the Trustee) prior to the mailing of the Offer of the Company’s
obligation to make an Offer to Purchase, and the Offer shall be mailed by the Company or, at the
Company’s request, by the Trustee in the name and at the expense of the Company. The Offer shall
contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to
the Offer to Purchase.

     On or before 11:00 a.m. (New York City time) on each Purchase Date, the Issuer shall
irrevocably deposit with the Trustee or Paying Agent (other than the Issuer or an Affiliate of the
Issuer) in immediately available funds the aggregate purchase price equal to the Offer Amount,
together with accrued and unpaid interest, if any, thereon,

-42-

 

to be held for payment in accordance with the terms of this Section 3.9. On the Purchase
Date, the Issuer shall, to the extent lawful, (i) accept for payment, on a pro rata basis to the
extent necessary in the case of an Asset Sale Offer or Event of Loss Offer, the Offer Amount of
Notes or portions thereof tendered pursuant to the Offer to Purchase, or if less than the Offer
Amount has been tendered, all Notes tendered, (ii) deliver or cause the Paying Agent or Depositary,
as the case may be, to deliver to the Trustee Notes so accepted and (iii) deliver to the Trustee an
Officers’ Certificate stating that such Notes or portions thereof were accepted for payment by the
Issuer in accordance with the terms of this Section 3.9. The Issuer, the Depositary or the Paying
Agent, as the case may be, shall promptly (but in any case not later than three (3) Business Days
after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the purchase
price of the Notes tendered by such Holder and accepted by the Issuer for purchase, plus any
accrued and unpaid interest, if any, thereon, and the Issuer shall promptly issue a new Note, and
the Trustee, upon receipt of an Issuer Order, shall authenticate and mail or deliver at the expense
of the Issuer such new Note to such Holder, equal in principal amount to any unpurchased portion of
such Holder’s Notes surrendered. Any Note not so accepted shall be promptly mailed or delivered by
or on behalf of the Issuer to the Holder thereof. The Issuer shall publicly announce in a
newspaper of general circulation or in a press release provided to a nationally recognized
financial wire service the results of the Offer to Purchase on the Purchase Date.

ARTICLE IV

COVENANTS

     SECTION 4.1 Payment of Notes.

     The Issuer shall pay or cause to be paid the principal of, premium, if any, and interest on
the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and
interest shall be considered paid for all purposes hereunder on the date the Paying Agent holds
(or, if the Issuer or an Affiliate is the Paying Agent, segregates in accordance with Section 2.4
hereof), as of 11:00 a.m. (New York City time), money deposited by the Issuer in immediately
available funds and designated for and sufficient to pay all such principal, premium, if any, and
interest then due.

     SECTION 4.2 Maintenance of Office or
Agency.

     The Issuer shall maintain an office or agency (which may be an office of the Trustee or an
Affiliate of the Trustee or Registrar) where Notes may be surrendered for registration of transfer
or for exchange and where notices and demands to or upon the Issuer in respect of the Notes and
this Indenture may be served. The Issuer shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. The Issuer hereby designates
the Corporate Trust Office of the Trustee as one such office or agency of the Issuer in accordance
with Section 2.3 hereof. If at any time the Issuer shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee
and the Company hereby appoints the Trustee its agent to receive all such presentations,
surrenders, notices and demands.

     The Issuer may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations. The Issuer shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

     The Issuer hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Issuer in accordance with Section 2.3 hereof.

     SECTION 4.3 Provision of Financial
Information.

     Whether or not required by the rules and regulations of the Commission, so long as any Notes
are outstanding, the Company or American Commercial Lines will, subject to the second succeeding
paragraph, file with the Commission, within the time periods specified in the Commission’s rules
and regulations that would then be applicable to the Company or American Commercial Lines, as
applicable:

-43-

 

     (1) all quarterly and annual reports that would be required to be filed with the
Commission on Forms 10-Q and 10-K if the Company or American Commercial Lines, as
applicable, was required to file such reports; and

     (2) all current reports that would be required to be filed with the Commission on Form
8-K if the Company or American Commercial Lines, as applicable, was required to file such
reports;

provided that any such reports filed by American Commercial Lines shall only be deemed to satisfy
the requirements of this Section 4.3 if, in addition to the other requirements set forth herein,
American Commercial Lines is a Guarantor at the time of such filing.

     All such reports will be prepared in all material respects in accordance with all of the rules
and regulations applicable to such reports. Each annual report on Form 10-K will include a report
on the consolidated financial statements of the Company or American Commercial Lines, as
applicable, by the certified independent accountants of the Company or American Commercial Lines,
as applicable.

     If, at any time, the Company and American Commercial Lines are no longer subject to the
periodic reporting requirements of the Exchange Act for any reason, the Company or American
Commercial Lines (subject to the proviso in the first paragraph of this Section 4.3) will
nevertheless continue filing the reports specified in the preceding paragraphs of this Section 4.3
with the Commission within the time periods specified above unless the Commission will not accept
such filings. Neither the Company nor American Commercial Lines will take any action for the
purpose of causing the Commission not to accept any such filings. If, notwithstanding the
foregoing, the Commission will not accept the filings of the Company and American Commercial Lines
for any reason, the Company or American Commercial Lines (subject to the proviso in the first
paragraph of this Section 4.3) will post the reports referred to in the preceding paragraphs on its
website within the time periods that would apply if the Company or American Commercial Lines, as
applicable, was required to file those reports with the Commission.

     For so long as any Notes remain outstanding, if at any time they are not required to file with
the Commission the reports required by the preceding paragraphs, the Company and the Guarantors
will furnish to the Holders of the Notes and to prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

     Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

     SECTION 4.4 Compliance Certificate.

     The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year,
an Officers’ Certificate stating that a review of the activities of the Company and its Restricted
Subsidiaries during the preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether each has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that, to his or her knowledge, each entity is not in default in the performance or
observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or
Event of Default shall have occurred, describing all such Defaults or Events of Default of which he
or she may have knowledge and what action the Company is taking or proposes to take with respect
thereto) and that, to his or her knowledge, no event has occurred and remains in existence by
reason of which payments on account of the principal of, premium, if any, or interest on the Notes
is prohibited or if such event has occurred, a description of the event and what action the Company
is taking or proposes to take with respect thereto. The Company shall, so long as any of the Notes
are outstanding, deliver to the Trustee, forthwith upon becoming aware of any Default or Event of
Default, an Officers’ Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

-44-

 

     SECTION 4.5 Taxes.

     The Company shall pay, and shall cause each of its Restricted Subsidiaries to pay, prior to
delinquency all material taxes, assessments and governmental levies, except such as are contested
in good faith and by appropriate proceedings and with respect to which appropriate reserves have
been taken in accordance with GAAP or where the failure to effect such payment is not adverse in
any material respect to the Holders of the Notes.

     SECTION 4.6 Stay, Extension and Usury
Laws.

     The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company and each of the
Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it shall not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law has been enacted.

     SECTION 4.7 Limitation on Restricted
Payments.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, make any Restricted Payment unless, at the time of and after giving effect to the
proposed Restricted Payment:

     (a) no Event of Default shall have occurred and be continuing or will occur as a
consequence thereof;

     (b) on a pro forma basis, American Commercial Lines would be permitted to Incur at
least $1.00 of additional Debt (other than Permitted Debt) pursuant to the provisions
described in the first paragraph under Section 4.9; and

     (c) on a pro forma basis, the aggregate amount expended or declared for all Restricted
Payments made on or after the Issue Date (excluding Restricted Payments permitted by clauses
(ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) and (xi) of the next succeeding
paragraph) shall not exceed the sum (without duplication) of

     (1) 50% of the Consolidated Net Income (or, if Consolidated Net Income shall be
a deficit, minus 100% of such deficit) of the Company accrued on a cumulative basis
during the period (taken as one accounting period) from and including July 1, 2009
and ending on the last day of the fiscal quarter for which consolidated financial
statements are available immediately preceding the date of such proposed Restricted
Payment, plus

     (2) 100% of the aggregate net proceeds (including the Fair Market Value of
property other than cash) received by the Company subsequent to the initial issuance
of the Notes either (i) as a contribution to its common equity capital or (ii) from
the issuance and sale (other than to a Restricted Subsidiary) of its Qualified
Capital Interests, including Qualified Capital Interests issued upon the conversion
of Debt or Redeemable Capital Interests of the Company, and from the exercise of
options, warrants or other rights to purchase such Qualified Capital Interests
(other than, in each case, Capital Interests or Debt sold to a Subsidiary of the
Company), plus

     (3) 100% of the net reduction in Investments (other than Permitted
Investments), subsequent to the date of the initial issuance of the Notes, in any
Person, resulting from (x) payments of interest on Debt, dividends, distributions or
cash repayments of Investments or other transfers of assets or repayments of loans
or advances (but only to the extent such interest, dividends or repayments were made
in cash and are not included in the calculation of Consolidated Net Income), in each
case to the Company or any Restricted Subsidiary from any Person (including, without
limitation, an Unrestricted Subsidiary) or (y) from the net proceeds from the sale
of

-45-

 

any such investment or the redesignation of any Unrestricted Subsidiary as a
Restricted Subsidiary, in each case, not to exceed in the case of any Person the
amount of Investments (other than Permitted Investments) previously made by American
Commercial Lines or any Restricted Subsidiary in such Person.

     Notwithstanding the foregoing provisions, the Company and its Restricted Subsidiaries may take
the following actions, provided that, in the case of clauses (iv) or (x) below immediately after
giving effect to such action, no Event of Default has occurred and is continuing:

     (i) the payment of any dividend or other distribution on Capital Interests in the
Company or a Restricted Subsidiary or the consummation of any irrevocable redemption within
60 days after declaration or giving notice thereof if at the declaration date such payment
would not have been prohibited by the foregoing provisions of this Section 4.7;

     (ii) the retirement of any Qualified Capital Interests of the Company by conversion
into, or by or in exchange for, Qualified Capital Interests, or out of net cash proceeds of
the substantially concurrent sale (other than to a Subsidiary of the Company) of other
Qualified Capital Interests of the Company;

     (iii) the redemption, defeasance, repurchase or acquisition or retirement for value of
any Debt of the Company or a Guarantor that is subordinate in right of payment to the Notes
or the applicable Note Guarantee out of the net cash proceeds of a substantially concurrent
issue and sale (other than to a Subsidiary of the Company) of (x) new subordinated Debt of
the Company or Guarantor, as the case may be, Incurred in accordance with this Indenture or
(y) of Qualified Capital Interests of the Company;

     (iv) the declaration and payment of dividends or distributions to the Company that are
used by the Company for the purchase, redemption, retirement or other acquisition for value
of Capital Interests in the Company held by employees or former employees of the Company or
any of its Restricted Subsidiaries (or their estates or beneficiaries under their estates)
upon death, disability, retirement or termination of employment; provided that the aggregate
consideration paid for such purchase, redemption, retirement or other acquisition of such
Capital Interests does not exceed $5.0 million in any calendar year;

     (v) repurchase of Capital Interests deemed to occur upon the exercise of stock options,
warrants or other convertible or exchangeable securities to the extent such Capital
Interests represent a portion of the exercise price and applicable withholding taxes of
those stock options, warrants or other convertible or exchangeable securities;

     (vi) the prepayment of intercompany Debt, the Incurrence of which was permitted
pursuant to Section 4.9;

     (vii) cash payment, in lieu of issuance of fractional shares in connection with the
exercise of warrants, options or other securities convertible into or exchangeable for the
Capital Interests of the Company or a Restricted Subsidiary;

     (viii) the declaration and payment of dividends to holders of any class or series of
Redeemable Capital Interests of the Company or any Restricted Subsidiary issued or Incurred
in compliance with Section 4.9 to the extent such dividends are included in the definition
of Consolidated Fixed Charges;

     (ix) upon the occurrence of a Change of Control or an Asset Sale, the defeasance,
redemption, repurchase or other acquisition of any subordinated Debt pursuant to provisions
substantially similar to those contained in Section 4.10 and Section 4.14 at a purchase
price not greater than 101% of the principal amount thereof (in the case of a Change of
Control) or at a percentage of the principal amount thereof not higher than 100% of the
principal amount thereof (in the case of an Asset Sale), plus any accrued and unpaid
interest thereon; provided that prior to or contemporaneously with such defeasance,
redemption, repurchase or other acquisition, the Company has made an Offer to Purchase with
respect to the Notes and has repurchased all Notes validly tendered for payment and not
withdrawn in connection therewith;

-46-

 

     (x) other Restricted Payments not in excess of $20.0 million in the aggregate;

     (xi) any payment, dividend or distribution with respect to its equity interests made
pursuant to and in accordance with stock option plans or other benefit plans for management
or employees of the Company and its Restricted Subsidiaries, including, without limitation,
pursuant to any severance packages for management or employees of the Company and Guarantors
and their respective Restricted Subsidiaries and approved by the Board of Directors (or
other governing body) of the Company and its Restricted Subsidiaries making such
distribution; and

     (xii) any distribution or dividend payable solely in membership interests or shares of
common stock of the Company or any of its Restricted Subsidiaries.

     For purposes of this Section 4.7, if any Investment or Restricted Payment would be permitted
pursuant to one or more provisions described above and/or one or more of the exceptions contained
in the definition of “Permitted Investments,” the Company may classify such Investment or
Restricted Payment in any manner that complies with this Section 4.7 and may later reclassify any
such Investment or Restricted Payment so long as the Investment or Restricted Payment (as so
reclassified) would be permitted to be made in reliance on the applicable exception as of the date
of such reclassification.

     If any Person in which an Investment is made, which Investment constitutes a Restricted
Payment when made, thereafter becomes a Restricted Subsidiary in accordance with this Indenture,
all such Investments previously made in such Person shall no longer be counted as Restricted
Payments for purposes of calculating the aggregate amount of Restricted Payments pursuant to clause
(c) of the first paragraph under this Section 4.7 or clause (x) above, in each case to the extent
such Investments would otherwise be so counted.

     If the Company or a Restricted Subsidiary transfers, conveys, sells, leases or otherwise
disposes of an Investment in accordance with Section 4.10, which Investment was originally included
in the aggregate amount expended or declared for all Restricted Payments pursuant to clause (c) of
the first paragraph of this Section 4.7 or clause (x) above, the aggregate amount expended or
declared for all Restricted Payments shall be reduced by the lesser of (i) the Net Cash Proceeds
from the transfer, conveyance, sale, lease or other disposition of such Investment or (ii) the
amount of the original Investment, in each case, to the extent originally included in the aggregate
amount expended or declared for all Restricted Payments pursuant to clause (c) of the first
paragraph of this Section 4.7.

     For purposes of this Section 4.7, if a particular Restricted Payment involves a non-cash
payment, including a distribution of assets, then such Restricted Payment shall be deemed to be an
amount equal to the cash portion of such Restricted Payment, if any, plus an amount equal to the
Fair Market Value of the non-cash portion of such Restricted Payment.

     SECTION 4.8 Limitation on Dividends and Other Payments Affecting Restricted
Subsidiaries.

     American Commercial Lines will not, and will not permit any of its Restricted Subsidiaries
(including the Company) to, directly or indirectly, cause or suffer to exist or become effective or
enter into any encumbrance or restriction (other than pursuant to this Indenture, law, rules or
regulation) on the ability of any Restricted Subsidiary to (i) pay dividends or make any other
distributions on its Capital Interests owned by American Commercial Lines or any Restricted
Subsidiary or pay any Debt or other obligation owed to American Commercial Lines or any Restricted
Subsidiary, (ii) make loans or advances to American Commercial Lines or any Restricted Subsidiary
thereof or (iii) transfer any of its property or assets to American Commercial Lines or any
Restricted Subsidiary.

     However, the preceding restrictions will not apply to the following encumbrances or
restrictions existing under or by reason of:

     (a) any encumbrance or restriction in existence on the Issue Date, including those
required by the Credit Agreement or any future Debt incurred in compliance with the Credit
Agreement (so long as such restrictions are not materially more restrictive, taken as a
whole, than the Credit Agreement) and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or

-47-

 

refinancings thereof; provided that the amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings, in the good
faith judgment of the Company, are not materially more restrictive, taken as a whole, with
respect to such dividend or other payment restrictions, than those contained in these
agreements on the Issue Date or refinancings thereof;

     (b) any encumbrance or restriction pursuant to an agreement relating to an acquisition
of property, so long as the encumbrances or restrictions in any such agreement relate solely
to the property so acquired (and are not or were not created in anticipation of or in
connection with the acquisition thereof);

     (c) any encumbrance or restriction which exists with respect to a Person that becomes a
Restricted Subsidiary after the Issue Date, which is in existence at the time such Person
becomes a Restricted Subsidiary, but not created in connection with or in anticipation of
such Person becoming a Restricted Subsidiary, and which is not applicable to any Person or
the property or assets of any Person other than such Person or the property or assets of
such Person becoming a Restricted Subsidiary;

     (d) any encumbrance or restriction pursuant to an agreement effecting a permitted
renewal, refunding, replacement, refinancing or extension of Debt issued pursuant to an
agreement containing any encumbrance or restriction referred to in the foregoing clauses (a)
through (c), so long as the encumbrances and restrictions contained in any such refinancing
agreement are no less favorable in any material respect to the Holders than the encumbrances
and restrictions contained in the agreements governing the Debt being renewed, refunded,
replaced, refinanced or extended in the good faith judgment of the Board of Directors of
American Commercial Lines;

     (e) customary provisions restricting subletting or assignment of any lease, contract,
or license of the Company or any Restricted Subsidiary or provisions in agreements that
restrict the assignment of such agreement or any rights thereunder;

     (f) any restriction on the sale or other disposition of assets or property securing
Debt as a result of a Permitted Lien on such assets or property;

     (g) any encumbrance or restriction by reason of applicable law, rule, regulation or
order;

     (h) any encumbrance or restriction under this Indenture, the Notes and the Note
Guarantees;

     (i) restrictions on cash and other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business;

     (j) provisions with respect to the disposition or distribution of assets or property in
joint venture agreements, asset sale agreements, sale-leaseback agreements, stock sale
agreements and other similar agreements entered into in the ordinary course of business;

     (k) any instrument governing Debt or Capital Interests of a Person acquired by the
Company or any of the Restricted Subsidiaries as in effect at the time of such acquisition
(except to the extent such Debt or Capital Interests were incurred in connection with or in
contemplation of such acquisition), which encumbrance or restriction is not applicable to
any Person, or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired;

     (l) Liens securing Debt otherwise permitted to be incurred under this Indenture,
including pursuant to Section 4.12, that limit the right of the debtor to dispose of the
assets subject to such Liens;

     (m) customary provisions limiting the disposition or distribution of assets or property
in joint venture agreements, asset sale agreements, sale-leaseback agreements, stock sale
agreements and other similar agreements otherwise permitted by this Indenture, which
limitation is applicable only to the assets (including Capital Interests of Subsidiaries)
that are the subject of such agreements;

-48-

 

     (n) agreement for the sale or disposition of a Restricted Subsidiary that restricts
distributions prior to the sale; and

     (o) Debt or other contractual requirements of a Receivable Subsidiary in connection
with a Qualified Receivables Transaction, provided that such restrictions apply only to such
Receivable Subsidiary.

     SECTION 4.9 Limitation on Incurrence of
Debt.

     American Commercial Lines will not, and will not permit any of its Restricted Subsidiaries
(including the Company) to, Incur any Debt (including Acquired Debt); provided that American
Commercial Lines, the Company and any of American Commercial Lines’ Restricted Subsidiaries may
Incur Debt (including Acquired Debt) if, immediately after giving effect to the Incurrence of such
Debt and the receipt and application of the proceeds therefrom, (a) the Consolidated Fixed Charge
Coverage Ratio of American Commercial Lines would be greater than 2.5 to 1.0 and (b) no Default or
Event of Default shall have occurred and be continuing at the time or as a consequence of the
Incurrence of such Debt; provided, however, that (A) the amount of Debt (excluding Acquired Debt
permitted pursuant to clause (B) below) that may be Incurred pursuant to the foregoing by
Restricted Subsidiaries that are not Guarantors of the Notes shall not exceed $10.0 million at any
one time outstanding and (B) the amount of Acquired Debt that may be Incurred pursuant to the
foregoing by Restricted Subsidiaries that are not Guarantors of the Notes shall not exceed $20.0
million at any one time outstanding (clauses (A) and (B) collectively, the “Non-Guarantor
Exceptions”).

     Notwithstanding the first paragraph above, the Company and its Restricted Subsidiaries may
Incur Permitted Debt.

     For purposes of determining compliance with this Section 4.9, (x) Debt Incurred under the
Credit Agreement on the Issue Date shall initially be treated as Incurred pursuant to clause (i) of
the definition of “Permitted Debt,” and may not later be re-classified, (y) Guarantees or
obligations with respect to letters of credit supporting Debt otherwise included in the
determination of such particular amount shall not be included and (z) except as provided above, in
the event that an item of Debt meets the criteria of more than one of the types of Debt described
above, including categories of Permitted Debt and the first paragraph of this Section 4.9, American
Commercial Lines, in its sole discretion, shall classify, and from time to time may reclassify, all
or any portion of such item of Debt.

     The accrual of interest, the accretion or amortization of original issue discount and the
payment of interest on Debt in the form of additional Debt or payment of dividends on Capital
Interests in the forms of additional shares of Capital Interests with the same terms in each case
will not be deemed to be an Incurrence of Debt or issuance of Capital Interests for purposes of
this Section 4.9.

     The Company and any Guarantor will not Incur any Debt that pursuant to its terms is
subordinate or junior in right of payment to any Debt unless such Debt is subordinated in right of
payment to the Notes and the Note Guarantees to the same extent; provided that Debt will not be
considered subordinate or junior in right of payment to any other Debt solely by virtue of being
unsecured or secured to a greater or lesser extent or with greater or lower priority.

     SECTION 4.10 Limitation on Asset Sales.

     American Commercial Lines will not, and will not permit any of its Restricted Subsidiaries
(including the Company) to, consummate an Asset Sale unless:

     (1) American Commercial Lines (or the Restricted Subsidiary, as the case may be)
receives consideration at the time of the Asset Sale at least equal to the Fair Market Value
of the assets or Capital Interests issued or sold or otherwise disposed of; and

-49-

 

     (2) at least 75% of the consideration received in the Asset Sale by American Commercial
Lines or such Restricted Subsidiary is in the form of cash or Eligible Cash Equivalents.
For purposes of this provision, each of the following will be deemed to be cash:

     (a) any liabilities, as shown on the most recent consolidated balance sheet of
American Commercial Lines, of the Company or any Restricted Subsidiary (other than
contingent liabilities and liabilities that are by their terms subordinated to the
Notes or any Note Guarantee) that are assumed by the transferee of any such assets
pursuant to a customary assignment and assumption agreement that releases American
Commercial Lines or the Company or Restricted Subsidiary, as the case may be, from
further liability; and

     (b) any securities, notes or other obligations received by American Commercial
Lines or the Company or any Restricted Subsidiary from such transferee that are
converted by American Commercial Lines or the Company or Restricted Subsidiary, as
the case may be, into cash within 365 days of their receipt to the extent of the cash
received in that conversion; and

     (3) if such Asset Sale involves the disposition of Collateral, American Commercial
Lines, the Company or Subsidiary has complied with the provisions of this Indenture and the
Security Documents; and

     (4) if such Asset Sale involves the disposition of Collateral, the Net Cash Proceeds
thereof shall be paid directly by the purchaser of the Collateral to the Collateral Agent
for deposit into the Collateral Account, and, if any property other than Cash or Eligible
Cash Equivalents is included in such Net Cash Proceeds, such property shall be made subject
to the Lien of this Indenture and the applicable Security Documents.

     Within 365 days after the receipt of any Net Cash Proceeds from an Asset Sale, American
Commercial Lines (or the Company or Restricted Subsidiary, as the case may be) may apply such Net
Cash Proceeds at its option:

     (i) to the extent such Net Cash Proceeds constitute proceeds from the sale of
Collateral, to permanently repay Obligations under the Credit Agreement and permanently
reduce the related loan commitment thereunder;

     (ii) to acquire assets constituting, or any Capital Interests of, a Permitted Business,
if, after giving effect to any such acquisition of Capital Interests, such assets are owned
by American Commercial Lines or the Company or a Restricted Subsidiary or the Person owning
such Permitted Business is or becomes a Restricted Subsidiary of American Commercial Lines
(or in the case of an Asset Sale of Collateral, to acquire additional Collateral);

     (iii) to make a capital expenditure in or that is used or useful in or an Investment in
a Permitted Business or to make expenditures for maintenance, repair or improvement of
existing properties and assets in accordance with the provisions of this Indenture;

     (iv) to acquire other assets that are not classified as current assets under GAAP and
that are used or useful in a Permitted Business;

     (v) to permanently repay Obligations under other Debt ranking pari passu with the Notes
if the Asset Sale involves assets that are not Collateral; or

     (vi) any combination of the foregoing; provided, that, to the extent such Asset Sale
involves the sale of Collateral, the consideration received therefor, together with any
asset or property in which such consideration is invested pursuant to clause (ii), (iii) or
(iv) above shall constitute Collateral subject to the Lien of the Security Documents;

-50-

 

provided that if during such 365-day period American Commercial Lines or a Restricted Subsidiary
enters into a definitive binding agreement committing it to apply such Net Cash Proceeds in
accordance with the requirements of clause (ii), (iii) or (iv), or any combination thereof, of this
paragraph, such 365-day period will be extended with respect to the amount of Net Cash Proceeds so
committed until such Net Cash Proceeds are required to be applied in accordance with such agreement
(or, if earlier, until termination of such agreement).

     Pending the final application of any Net Cash Proceeds, American Commercial Lines (or the
Company or Restricted Subsidiary, as the case may be) may temporarily reduce borrowings under the
Credit Agreement.

     Subject to the next succeeding paragraph, any Net Cash Proceeds from Asset Sales that are not
applied or invested as provided in the preceding paragraph of this Section 4.10 will constitute
“Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $25.0 million (it being
understood that the Company may, in its sole discretion, make an Asset Sale Offer pursuant to this
Section 4.10 prior to the time that the aggregate amount of Excess Proceeds exceeds $25.0 million),
within thirty days thereof, the Company will make an Asset Sale Offer to all Holders of Notes and
to all holders of other Debt ranking pari passu with the Notes containing provisions similar to
those set forth in this Section 4.10 with respect to asset sales, in each case, equal to the Excess
Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the principal amount
plus accrued and unpaid interest to the date of purchase, and will be payable in cash. If any
Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use those Excess
Proceeds for any purpose not otherwise prohibited by this Indenture and such remaining amount shall
not be added to any subsequent Excess Proceeds for any purpose under this Indenture. If the
aggregate principal amount of Notes and other Permitted Additional Pari Passu Obligations and other
Debt ranking pari passu with the Notes containing provisions similar to those set forth in this
Section 4.10 tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee
will select the Notes and other Permitted Additional Pari Passu Obligations and other Debt (to the
extent the Debt permits such a selection) to be purchased on a pro rata basis. Upon completion of
each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero. The provisions of
Section 3.9 shall apply to any Asset Sale Offer.

     American Commercial Lines and its Restricted Subsidiaries will comply with the requirements of
Rule 14e-1 under the Exchange Act and any other applicable securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Offer to Purchase. To the extent that the provisions of any
securities laws or regulations conflict with the Asset Sale provisions of this Indenture, American
Commercial Lines and its Restricted Subsidiaries will comply with the applicable securities laws
and regulations and will not be deemed to have breached its obligations under this Section 4.10 by
virtue of such compliance.

     SECTION 4.11 Limitation on Transactions with Affiliates.

     American Commercial Lines will not, and will not permit any of its Restricted Subsidiaries
(including the Company) to, directly or indirectly, make any payment to, or sell, lease, transfer
or otherwise dispose of any of its properties or assets to, or purchase any property or assets
from, or enter into or make or amend any transaction or series of related transactions, contract,
agreement, loan, advance or guarantee with, or for the benefit of, any Affiliate of American
Commercial Lines (each of the foregoing, an “Affiliate Transaction”) unless:

     (i) such Affiliate Transaction is on terms that are not materially less favorable to
American Commercial Lines or the relevant Restricted Subsidiary than those that could
reasonably have been obtained in a comparable arm’s length transaction by American
Commercial Lines or such Restricted Subsidiary with an unaffiliated party;

     (ii) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $15.0 million, American
Commercial Lines delivers to the Trustee a resolution adopted in good faith by the majority
of the Board of Directors of American Commercial Lines approving such Affiliate Transaction
and set forth in an Officers’ Certificate certifying that such Affiliate Transaction
complies with clause (i) above; and

-51-

 

     (iii) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $25.0 million, American
Commercial Lines must obtain and deliver to the Trustee a written opinion of a nationally
recognized investment banking, accounting or appraisal firm (an “Independent Financial
Advisor”) stating that the transaction is fair to American Commercial Lines or such
Subsidiary, as the case may be, from a financial point of view.

     The foregoing limitation does not limit, and shall not apply to:

     (1) Restricted Payments that are permitted by Section 4.7 of this Indenture and
Permitted Investments;

     (2) the payment of reasonable and customary fees and indemnities to members of the
Board of Directors of American Commercial Lines or a Restricted Subsidiary;

     (3) any employment agreement, arrangement or plan or similar arrangement entered into
by the Company or a Restricted Subsidiary in the ordinary course of business, including the
payment of reasonable and customary compensation and other benefits (including retirement,
health, option, deferred compensation and other benefit plans) and indemnities to officers
and employees of American Commercial Lines or any Restricted Subsidiary;

     (4) transactions between or among American Commercial Lines and/or its Restricted
Subsidiaries;

     (5) the issuance of Capital Interests (other than Redeemable Capital Interests) of
American Commercial Lines otherwise permitted hereunder;

     (6) any agreement or arrangement as in effect on the Issue Date and any amendment or
modification thereto so long as such amendment or modification is not more disadvantageous
to the holders of the Notes in any material respect;

     (7) transactions in which American Commercial Lines delivers to the Trustee a written
opinion from an Independent Financial Advisor to the effect that the transaction is fair,
from a financial point of view, to American Commercial Lines and any relevant Restricted
Subsidiaries;

     (8) any contribution of capital to the Company;

     (9) transactions with customers, clients, suppliers or purchasers or sellers of goods
or services, in each case, in the ordinary course of business and consistent with past
practice and on terms that are not materially less favorable to American Commercial Lines or
such Restricted Subsidiary, as the case may be, as determined in good faith by American
Commercial Lines, than those that could be obtained in a comparable arm’s length transaction
with a Person that is not an Affiliate of American Commercial Lines;

     (10) Permitted Sale and Leaseback Transactions; and

     (11) transactions in connection with a Permitted JV Transaction.

     SECTION 4.12 Limitation on Liens.

     (a) American Commercial Lines will not, and will not permit any of its Restricted Subsidiaries
(including the Company), directly or indirectly, to enter into, create, incur, assume or suffer to
exist any Lien of any kind, on or with respect to the Collateral other than Permitted Collateral
Liens.

     (b) Subject to paragraph (a) of this Section 4.12, American Commercial Lines will not, and
will not permit any of its Restricted Subsidiaries (including the Company), directly or indirectly,
to, enter into, create, incur, assume or suffer to exist any Liens of any kind with respect to any
property, other than Permitted Liens, on or with

-52-

 

respect to any of its property or assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom with respect to property other than Collateral without
securing the Notes and all other amounts due under this Indenture and the Security Documents (for
so long as such Lien exists) equally and ratably with (or prior to) the obligation or liability
secured by such Lien.

     SECTION 4.13 Limitation on Sale and Leaseback Transactions.

     American Commercial Lines will not, and will not permit any of its Restricted Subsidiaries
(including the Company) to, enter into any Sale and Leaseback Transaction (other than a Permitted
Sale and Leaseback Transaction or a Sale and Leaseback Transaction between the Company and one or
more Restricted Subsidiaries or among Restricted Subsidiaries) unless:

     (i) the gross cash proceeds received in such Sale and Leaseback Transaction is at least
equal to the lesser of fair market value or net tax basis value of the property sold, as
determined by a board resolution of the Board of Directors of American Commercial Lines or
by an Officers’ Certificate,

     (ii) prior to and after giving effect to the Attributable Debt in respect of such Sale
and Leaseback Transaction, American Commercial Lines and such Restricted Subsidiary comply
with Section 4.9, and

     (iii) at or after such time American Commercial Lines and such Restricted Subsidiary
also comply with Section 4.10.

     SECTION 4.14 Offer To Purchase upon Change of Control.

     Upon the occurrence of a Change of Control, the Issuer will make an Offer to Purchase (the
“Change of Control Offer”) all of the outstanding Notes at a purchase price (the “Purchase Price”)
in cash equal to 101% of the principal amount tendered, together with accrued interest, if any, to
but not including the Purchase Date (the “Change of Control Payment”). For purposes of the
foregoing, an Offer to Purchase shall be deemed to have been made if (i) within 30 days following
the date of the consummation of a transaction or series of transactions that constitutes a Change
of Control, the Issuer commences an Offer to Purchase all outstanding Notes at the Purchase Price
and (ii) all Notes properly tendered pursuant to the Offer to Purchase are purchased on the terms
of such Offer to Purchase.

     On the Purchase Date, the Issuer shall, to the extent lawful, (a) accept for payment all Notes
or portions thereof properly tendered pursuant to the Change of Control Offer, (b) deposit with the
Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions
thereof so tendered and (c) otherwise comply with Section 3.9.

     The Change of Control provisions described above will be applicable whether or not any other
provisions of this Indenture are applicable.

     The Issuer shall not be required to make a Change of Control Offer upon a Change of Control if
(i) a third party makes such Change of Control Offer contemporaneously with or upon a Change of
Control in the manner, at the times and otherwise in compliance with the requirements set forth
herein applicable to a Change of Control Offer made by the Issuer and purchases all Notes validly
tendered and not withdrawn under such Change of Control Offer or (ii) a notice of redemption has
been given pursuant to Section 3.7.

     To the extent that the provisions of any securities laws or regulations conflict with the
Change of Control provisions of this Indenture, the Issuer will comply with the applicable
securities laws and regulations and will not be deemed to have breached its obligations under this
Section 4.14 by virtue of such conflict.

     In addition, an Offer to Purchase may be made in advance of a Change of Control, conditional
upon such Change of Control, if a definitive agreement is in place for the Change of Control at the
time of launching the Offer to Purchase.

-53-

 

     SECTION 4.15 Maintenance of Properties and Corporate Existence.

     Subject to, and in compliance with, the provisions of Article X and the provisions of the
applicable Security Documents, American Commercial Lines and the Company shall cause all material
properties used or useful in the conduct of their business or the business of any of the Guarantors
to be maintained and kept in good operating condition, repair and working order (ordinary wear and
tear and casualty loss excepted) and supplied with all necessary equipment and shall cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereto; provided,
that American Commercial Lines and the Company shall not be obligated to make such repairs,
renewals, replacements, betterments and improvements or maintain such properties if the failure to
do so would not result in a material adverse effect on the ability of American Commercial Lines,
the Company and the Guarantors to satisfy their obligations under the Notes, the Guarantees, this
Indenture and the Security Documents.

     Subject to Section 4.14 and Article V hereof, as the case may be, American Commercial
Lines and the Company shall do or cause to be done all things necessary to preserve and keep in
full force and effect its corporate existence and the corporate, partnership, limited liability
company or other existence of each of its Restricted Subsidiaries in accordance with the respective
organizational documents (as the same may be amended from time to time) of American Commercial
Lines, the Company or any such Restricted Subsidiary and the rights (charter and statutory),
licenses and franchises of American Commercial Lines, the Company and its Restricted Subsidiaries;
provided that American Commercial Lines and the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence of any of their
respective Restricted Subsidiaries, if the Board of Directors of American Commercial Lines or the
Company, as applicable, shall determine that the preservation thereof is no longer desirable in the
conduct of the business of American Commercial Lines, the Company and its Restricted Subsidiaries,
taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders.

     SECTION 4.16 Events of Loss.

     In the event of an Event of Loss resulting in Net Loss Proceeds in excess of $25.0 million,
American Commercial Lines, the Company or the affected Restricted Subsidiary of American Commercial
Lines, as the case may be, may (and to the extent required pursuant to the terms of any lease
encumbered by a mortgage shall) apply the Net Loss Proceeds from such Event of Loss to either

     (i) the rebuilding, repair, replacement, construction or improvement to the property
affected by such Event of Loss or other property constituting Collateral (the “Subject
Property”); or

     (ii) to permanently repay Obligations under the Credit Agreement and permanently reduce
the related loan commitment thereunder, with no concurrent obligation to offer to purchase
any of the Notes;

provided, however, that in the case of clause (i) above the Company delivers to the Trustee within
90 days of such Event of Loss, an Officers’ Certificate certifying that the Company has applied
(or will apply after receipt of any anticipated insurance or similar proceeds) the Net Loss
Proceeds or other sources in accordance with clause (i) or (ii) above.

     Any Net Loss Proceeds that are not reinvested or not permitted to be reinvested or used to
permanently repay obligations under the Credit Agreement as provided in the first sentence of this
Section 4.16 will be deemed “Excess Loss Proceeds.” When the aggregate amount of Excess Loss
Proceeds exceeds $25.0 million, the Company will make an offer (an “Event of Loss Offer”) to all
Holders and to the holders of any other Permitted Additional Pari Passu Obligations containing
provisions similar to those set forth in this Section 4.16 to purchase or repurchase the Notes and
such other Permitted Additional Pari Passu Obligations with the proceeds from the Event of Loss in
an amount equal to the maximum principal amount of Notes and such other Permitted Additional Pari
Passu Obligations that may be purchased out of the Excess Loss Proceeds. The offer price in any
Event of Loss Offer will be equal to 100% of the principal amount plus accrued and unpaid interest
if any, to the date of purchase, and will be payable in cash. If any Excess Loss Proceeds remain
after consummation of an Event of Loss Offer, American Commercial Lines, the Company or the
affected Restricted Subsidiary of American Commercial Lines, as the case

-54-

 

may be, may use such Excess Loss Proceeds for any purpose not otherwise prohibited by this
Indenture and the Security Documents and such remaining amount shall not be added to any subsequent
Excess Loss Proceeds for any purpose under this Indenture; provided that any remaining Excess Loss
Proceeds shall remain subject to the Lien of the Security Documents. If the aggregate principal
amount of Notes and other Permitted Additional Pari Passu Obligations and other Debt ranking pari
passu with the Notes containing provisions similar to those set forth in this Section 4.16 tendered
pursuant to an Event of Loss Offer exceeds the Excess Loss Proceeds, the Trustee will select the
Notes and such other Permitted Additional Pari Passu Obligations and other Debt (to the extent such
other Debt permits such a selection) to be purchased on a pro rata basis based on the principal
amount tendered. The Company shall comply with Section 3.9 in connection with any Event of Loss
Offer.

     American Commercial Lines and its Restricted Subsidiaries will comply with the requirements of
Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the
extent such laws or regulations are applicable in connection with the repurchase of the Notes
pursuant to an Event of Loss Offer. To the extent that the provisions of any applicable securities
laws or regulations conflict with the Event of Loss provisions of this Indenture, American
Commercial Lines and its Restricted Subsidiaries will comply with the applicable securities laws
and regulations and shall not be deemed to have breached their obligations under this Section 4.16
by virtue of such compliance.

     SECTION 4.17 Business Activities.

     American Commercial Lines will not, and will not permit any Restricted Subsidiary (including
the Company) to, engage in any business other than a Permitted Business except to such extent as
would not be material to American Commercial Lines and its Restricted Subsidiaries taken as a
whole.

     SECTION 4.18 [Reserved]

     SECTION 4.19 [Reserved]

     SECTION 4.20 Additional Note Guarantees.

     After the Issue Date, American Commercial Lines will cause each of its Restricted Subsidiaries
(other than (w) any Foreign Subsidiary, (x) any Restricted Subsidiary that is prohibited by law
from guaranteeing the Notes or that would experience adverse regulatory consequences as a result
providing a guarantee of the Notes (so long as, in the case of this clause (x), such Restricted
Subsidiary has not provided a guarantee of any other Debt of the Company or any Guarantor) and (y)
any Receivable Subsidiary) that (A) Incurs any Debt in an aggregate principal amount in excess of
$10.0 million (other than Debt permitted to be Incurred pursuant to the Non-Guarantor Exceptions or
clauses (v), (viii), (ix), (x), (xi), (xii), (xiii), (xvi), (xvii) and (xix) of the definition
“Permitted Debt”) at any time outstanding or (B) guarantees any Debt (other than pursuant to the
Non-Guarantor Exceptions and the Permitted Debt clauses referred to above) of the Company or the
Guarantors, in each case, to guarantee the Notes pursuant to a supplemental indenture in accordance
with Article IX of this Indenture.

     Such Guarantor will also enter into a joinder agreement to the applicable Security Documents
defining the terms of the security interests that secure payment and performance when due of the
Notes and take all actions advisable in the opinion of the Company, as set forth in an Officers’
Certificate accompanied by an Opinion of Counsel to American Commercial Lines, to cause the Note
Liens created by the Security Agreement, Pledge Agreement and the other applicable Security
Documents to be duly perfected to the extent required by such agreement in accordance with all
applicable law, including the filing of financing statements in the jurisdictions of incorporation
or formation of the Company and the Guarantors.

     SECTION 4.21 Limitation on Creation of Unrestricted Subsidiaries.

     American Commercial Lines may designate any Subsidiary (other than the Company) of American
Commercial Lines to be an “Unrestricted Subsidiary” as provided below, in which event such
Subsidiary and each other Person that is a Subsidiary of such Subsidiary will be deemed to be an
Unrestricted Subsidiary.

-55-

 

     American Commercial Lines may designate any Subsidiary (other than the Company) to be an
Unrestricted Subsidiary unless such Subsidiary owns any Capital Interests of, or owns or holds any
Lien on any property of, any other Restricted Subsidiary of American Commercial Lines, provided
that either:

     (x) the Subsidiary to be so designated has total assets of $1,000 or less; or

     (y) (i) immediately after giving effect to such designation, American Commercial Lines
could Incur at least $1.00 of additional Debt (other than Permitted Debt) pursuant to the
first paragraph under Section 4.9 or (ii) the Consolidated Fixed Charge Coverage Ratio for
American Commercial Lines and its Restricted Subsidiaries would be greater than such ratio
for American Commercial Lines and its Restricted Subsidiaries immediately prior to such
transaction; and

provided further that American Commercial Lines could make a Restricted Payment or a Permitted
Investment in an amount equal to the greater of the Fair Market Value or book value of such
Subsidiary pursuant to Section 4.7 and such amount is thereafter treated as a Restricted Payment or
a Permitted Investment for the purpose of calculating the amount available in connection with
Section 4.7.

     An Unrestricted Subsidiary may be designated as a Restricted Subsidiary if (i) all the Debt of
such Unrestricted Subsidiary could be Incurred pursuant to Section 4.9 and (ii) all the Liens on
the property and assets of such Unrestricted Subsidiary could be incurred pursuant to Section 4.12.

     SECTION 4.22 [Reserved]

     SECTION 4.23 Further Assurances.

     American Commercial Lines will, and will cause each of its existing and future Restricted
Subsidiaries (including the Company) to, execute and deliver such additional instruments,
certificates or documents, and take all such actions as may be reasonably required from time to
time in order to:

     (1) carry out more effectively this Indenture and the purposes of the Security
Documents;

     (2) create, grant, perfect and maintain the validity, effectiveness and priority of any
of the Security Documents and the Liens created, or intended to be created, by the Security
Documents; and

     (3) ensure the protection and enforcement of any of the rights granted or intended to
be granted to the Trustee under any other instrument executed in connection therewith.

ARTICLE V

SUCCESSORS

     SECTION 5.1 Consolidation, Merger, Conveyance, Transfer or Lease.

     Neither the Company nor American Commercial Lines will, in any transaction or series of
transactions, consolidate with or merge into any other Person (other than a merger of a Restricted
Subsidiary (other than the Company) into American Commercial Lines or the Company in which American
Commercial Lines or the Company, as applicable, is the continuing Person or the merger of a
Restricted Subsidiary (other than the Company) into or with another Restricted Subsidiary or
another Person that as a result of such transaction becomes or merges into a Restricted
Subsidiary), or sell, assign, convey, transfer, lease or otherwise dispose of all or substantially
all of the assets of American Commercial Lines and its Restricted Subsidiaries (determined on a
consolidated basis), taken as a whole, to any other Person, unless:

     (i) either: (a) the Company or American Commercial Lines, as applicable, shall be the
continuing Person or (b) the Person (if other than the Company or American Commercial Lines,
as applicable) formed by such consolidation or into which the Company or American Commercial
Lines, as applicable, is

-56-

 

merged, or the Person that acquires, by sale, assignment, conveyance, transfer, lease
or other disposition, all or substantially all of the property and assets of the Company or
American Commercial Lines, as applicable (such Person, the “Surviving Entity”), (1) shall be
a corporation, partnership, limited liability company or similar entity organized and
validly existing under the laws of the United States, any political subdivision thereof or
any state thereof or the District of Columbia, (2) shall expressly assume, by a supplemental
indenture, the due and punctual payment of all amounts due in respect of the principal of
(and premium, if any) and interest on all the Notes and the performance of the covenants and
obligations of the Company or American Commercial Lines, as applicable, under this Indenture
and (3) shall expressly assume, by documentation specified by, and executed and delivered
to, the Trustee (and otherwise acceptable to the Collateral Agent), the due and punctual
performance of the covenants and obligations of the Company or American Commercial Lines, as
applicable, under the Security Documents; provided that at any time the Company or its
successor is not a corporation, there shall be a co-issuer of the Notes that is a
corporation;

     (ii) immediately before and immediately after giving effect to such transaction or
series of transactions on a pro forma basis (including, without limitation, any Debt
Incurred in connection with or in respect of such transaction or series of transactions), no
Default or Event of Default shall have occurred and be continuing or would result therefrom;

     (iii) immediately after giving effect to any such transaction or series of transactions
on a pro forma basis (including, without limitation, any Debt Incurred or anticipated to be
Incurred in connection with or in respect of such transaction or series of transactions) as
if such transaction or series of transactions had occurred on the first day of the
determination period, the Company or American Commercial Lines, as applicable (or the
Surviving Entity if the Company or American Commercial Lines, as applicable, is not
continuing), either (x) could Incur $1.00 of additional Debt (other than Permitted Debt)
under the first paragraph of Section 4.9 or (y) the Consolidated Fixed Charge Coverage Ratio
for American Commercial Lines and its Restricted Subsidiaries would be greater than such
ratio for American Commercial Lines and its Restricted Subsidiaries immediately prior to
such transaction;

     (iv) the Company or American Commercial Lines, as applicable, delivers, or causes to be
delivered, to the Trustee, in form and substance satisfactory to the Trustee, an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale,
conveyance, assignment, transfer, lease or other disposition complies with the requirements
of this Indenture;

     (v) the Surviving Entity causes such amendments, supplements or other instruments to be
executed, delivered, filed and recorded, as applicable, in such jurisdictions as may be
required by applicable law to preserve and protect the Lien of the Security Documents on the
Collateral owned by or transferred to the Surviving Entity;

     (vi) the Collateral owned by or transferred to the Surviving Entity shall (a) continue
to constitute Collateral under this Indenture and the Security Documents, (b) be subject to
the Lien in favor of the Collateral Agent for the benefit of the Trustee and the Holders of
the Notes, and (c) not be subject to any Lien other than Permitted Collateral Liens, in each
case except as otherwise permitted by this Indenture; and

     (vii) the property and assets of the Person which is merged or consolidated with or
into the Surviving Entity, to the extent that they are property or assets of the types which
would constitute Collateral under the Security Documents, shall be treated as after-acquired
property and the Surviving Entity shall take such action as may be reasonably necessary to
cause such property and assets to be made subject to the Lien of the Security Documents in
the manner and to the extent required in this Indenture.

     The preceding clause (iii) will not prohibit a merger between the Company and an Affiliate
incorporated solely for the purpose of converting the Company into a corporation organized under
the laws of the United States or any political subdivision or state thereof so long as the amount
of Debt of American Commercial Lines and its Restricted Subsidiaries is not increased thereby,
except for Debt incurred in the ordinary course of business to pay fees, expenses and other costs
associated with such transaction.

-57-

 

     No Subsidiary Guarantor may sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into (whether or not such Subsidiary Guarantor is
the surviving Person) another Person, unless:

     (1) immediately after giving effect to that transaction, no Default or Event of Default
exists; and

     (2) either (a) the Person acquiring the property in any such sale or disposition or the
Person formed by or surviving any such consolidation or merger assumes all the obligations
of such Subsidiary Guarantor under this Indenture, pursuant to a supplemental indenture
reasonably satisfactory to the Trustee or (b) the Net Proceeds of such sale, disposition,
merger or consolidation are applied in accordance with the applicable provisions of this
Indenture.

     For all purposes of this Indenture and the Notes, Subsidiaries of any Surviving Entity will,
upon such transaction or series of transactions, become Restricted Subsidiaries or Unrestricted
Subsidiaries as provided pursuant to this Indenture and all Debt, and all Liens on property or
assets, of the Surviving Entity and its Subsidiaries that was not Debt, or were not Liens on
property or assets, of American Commercial Lines and its Subsidiaries immediately prior to such
transaction or series of transactions shall be deemed to have been Incurred upon such transaction
or series of transactions.

     Upon any transaction or series of transactions involving the Company or American Commercial
Lines that are of the type described in, and are effected in accordance with, conditions described
in the immediately preceding paragraphs in which the Company or American Commercial Lines is not
the Surviving Entity, the Surviving Entity shall succeed to, and be substituted for, and may
exercise every right and power of, the Company or American Commercial Lines, as applicable, under
this Indenture with the same effect as if such Surviving Entity had been named as the Company or
American Commercial Lines, as applicable, therein; and when a Surviving Person duly assumes all of
the obligations and covenants of the Company or American Commercial Lines, as applicable, pursuant
to this Indenture and the Notes, except in the case of a lease, the predecessor Person shall be
relieved of all such obligations.

     SECTION 5.2 Successor Person Substituted.

     Upon any consolidation or merger, or any sale, assignment, conveyance, transfer, lease or
other disposition of all or substantially all of the assets of American Commercial Lines or the
Company in accordance with Section 5.1 hereof, the successor Person formed by such consolidation or
into or with which American Commercial Lines or the Company (and, if necessary, any co-issuer) is
merged or to which such sale, assignment, conveyance, transfer, lease or other disposition is made
shall succeed to, and be substituted for (so that from and after the date of such consolidation,
merger, sale, lease, conveyance or other disposition, the provisions of this Indenture referring to
“American Commercial Lines” or the “Company” shall refer instead to the successor Person and not to
American Commercial Lines or the Company), and shall exercise every right and power of, American
Commercial Lines or the Company under this Indenture with the same effect as if such successor
Person had been named as American Commercial Lines or the Company herein; provided, however, that
in the event of a lease, the predecessor shall not be released from the payment of principal and
interest or other obligations on the Notes.

ARTICLE VI

DEFAULTS AND REMEDIES

     SECTION 6.1 Events of Default.

     Each of the following constitutes an “Event of Default”:

     (1) default in the payment in respect of the principal of (or premium, if any, on) any
Note at its maturity (whether at Stated Maturity or upon repurchase, acceleration, optional
redemption or otherwise);

-58-

 

     (2) default in the payment of any interest upon any Note when it becomes due and
payable, and continuance of such default for a period of 30 days;

     (3) failure to perform or comply with Section 5.1;

     (4) except as permitted by this Indenture, any Note Guarantee of any Significant
Subsidiary (or any group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary) shall for any reason cease to be, or it shall be asserted by any
Guarantor or Issuer not to be, in full force and effect and enforceable in accordance with
its terms (except as specifically provided in this Indenture);

     (5) default in the performance, or breach, of (i) any covenant or agreement of the
Company or any Guarantor in this Indenture (other than a (x) covenant or agreement a
default in whose performance or whose breach is specifically dealt with in clauses (1), (2)
(3) or (4) above or (y) a covenant or agreement contained in Section 4.3), and continuance
of such default or breach for a period of 60 days after written notice thereof has been
given to the Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of the outstanding Notes or (ii) any covenant or
agreement contained in Section 4.3 and continuance of such default or breach for a period of
120 days after written notice thereof has been given to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the
outstanding Notes;

     (6) a default or defaults under any bonds, debentures, notes or other evidences of Debt
(other than the Notes) by American Commercial Lines or any Restricted Subsidiary of American
Commercial Lines (including the Company) having, individually or in the aggregate, a
principal or similar amount outstanding of at least $35.0 million, whether such Debt now
exists or shall hereafter be created, which default or defaults shall have resulted in the
acceleration of the maturity of such Debt prior to its express maturity or shall constitute
a failure to pay at least $35.0 million of such Debt when due and payable after the
expiration of any applicable grace period with respect thereto;

     (7) the entry against American Commercial Lines or any Restricted Subsidiary of
American Commercial Lines that is a Significant Subsidiary (or any group of Restricted
Subsidiaries that, taken together, would constitute a Significant Subsidiary) of a final
non-appealable judgment or final non-appealable judgments for the payment of money in an
aggregate amount in excess of $35.0 million (other than any judgments covered by indemnities
or insurance policies as to which liability coverage has not been denied by the insurance
company or indemnifying party), by a court or courts of competent jurisdiction, which
judgments remain undischarged, unwaived, unstayed, unbonded or unsatisfied for a period of 90
consecutive days;

     (8) (i) American Commercial Lines, any Significant Subsidiary or any group of
Restricted Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary,
pursuant to or within the meaning of any Bankruptcy Code:

     (a) commences a voluntary case,

     (b) consents to the entry of an order for relief against it in an involuntary
case,

     (c) consents to the appointment of a Custodian of it or for all or
substantially all of its property,

     (d) makes a general assignment for the benefit of its creditors, or

     (e) admits, in writing, its inability generally to pay its debts as they become
due; or

     (ii) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Code that:

-59-

 

     (a) is for relief against American Commercial Lines, any Significant Subsidiary
or any group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary, in an involuntary case;

     (b) appoints a Custodian of American Commercial Lines, any Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary or for all or substantially all of the property
of American Commercial Lines or any of its Restricted Subsidiaries (including the
Company); or

     (c) orders the liquidation of American Commercial Lines, the Company or any
Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted
Subsidiaries that, taken together, would constitute a Significant Subsidiary;

     and the order or decree remains unstayed and in effect for 60 consecutive days; or

     (9) unless all of the Collateral has been released from the Note Liens in accordance
with the provisions of the Security Documents, default by American Commercial Lines or any
of its Restricted Subsidiaries or Guarantors in the performance of the Security Documents
which adversely affects in any material respect the enforceability, validity, perfection or
priority of the Note Liens on a material portion of the Collateral, the repudiation or
disaffirmation by American Commercial Lines or any of its Restricted Subsidiaries or
Guarantors of its material obligations under the Security Documents or the determination in
a judicial proceeding that the Security Documents are unenforceable or invalid against
American Commercial Lines or any of its Restricted Subsidiaries or Guarantors party thereto
for any reason with respect to a material portion of the Collateral (which default,
repudiation, disaffirmation or determination is not rescinded, stayed, or waived by the
Persons having such authority pursuant to the Security Documents) or otherwise cured within
60 days after the Company receives written notice thereof specifying such occurrence from
the Trustee or the Holders of at least 66 2/3% of the outstanding principal amount of the
Note Obligations and demanding that such default be remedied.

     The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Code.

     The Trustee shall not be deemed to have notice of any Event of Default and shall not have any
duty or responsibility in respect thereof unless and until a Responsible Officer of the Trustee has
received written notice of such Event of Default or has actual knowledge of such Event of Default.
Delivery of reports, information and documents to the Trustee under Section 4.3 is for
informational purposes only and the Trustee’s receipt of the foregoing shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder or the existence of
an Event of Default (as to which the Trustee is entitled to rely exclusively on Officers’
Certificates, except as otherwise provided herein).

     SECTION 6.2 Acceleration.

     If an Event of Default (other than an Event of Default specified in clause (8) of Section 6.1
with respect to the Company) occurs and is continuing, then and in every such case the Trustee or
the Holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare
the principal of the Notes and any accrued interest on the Notes to be due and payable immediately
by a notice in writing to the Company (and to the Trustee if given by Holders); provided, however,
that after such acceleration, but before a judgment or decree based on acceleration, the Holders of
a majority in aggregate principal amount of the outstanding Notes may, under certain circumstances,
rescind and annul such acceleration of all Events of Default, other than the nonpayment of
accelerated principal of or interest on the Notes, have been cured or waived as provided in the
Indenture.

     In the event of a declaration of acceleration of the Notes solely because an Event of Default
described in clause (6) of Section 6.1 has occurred and is continuing, the declaration of
acceleration of the Notes shall be automatically rescinded and annulled if the event of default or
payment default triggering such Event of Default pursuant

-60-

 

to clause (6) of Section 6.1 shall be remedied or cured by American Commercial Lines or a
Restricted Subsidiary of American Commercial Lines or waived by the holders of the relevant Debt
within 20 Business Days after the declaration of acceleration with respect thereto and if the
rescission and annulment of the acceleration of the Notes would not conflict with any judgment or
decree of a court of competent jurisdiction obtained by the Trustee for the payment of amounts due
on the Notes.

     If an Event of Default specified in clause (8) of Section 6.1 occurs with respect to the
Company, the principal of and any accrued interest on the Notes then outstanding shall ipso facto
become immediately due and payable without any declaration or other act on the part of the Trustee
or any Holder. The Trustee may withhold from the Holders notice of any Default (except Default in
payment of principal of, premium, if any, and interest) if the Trustee determines that withholding
notice is in the interests of the Holders to do so.

     SECTION 6.3 Other Remedies.

     If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal, premium, if any, interest on the Notes or to enforce the
performance of any provision of the Notes, this Indenture or the Security Documents.

     The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

     Pursuant to Section 4.4, the Company shall deliver to the Trustee annually a statement
regarding compliance with this Indenture, and the Company shall, upon becoming aware of any Default
or Event of Default, deliver to the Trustee a statement specifying such Default or Event of
Default.

     SECTION 6.4 Waiver of Past Defaults.

     The Holders of a majority in aggregate principal amount of the Notes then outstanding by
written notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing
Default or Event of Default and its consequences under this Indenture except a continuing Default
or Event of Default in the payment of interest on, or the principal of, the Notes (other than as a
result of an acceleration), which shall require the written consent of all of the Holders of the
Notes then outstanding.

     SECTION 6.5 Control by Majority.

     The Holders of a majority in aggregate principal amount of the then outstanding Notes may
direct the time, method and place of conducting any proceeding for exercising any remedy available
to the Trustee or exercising any trust power conferred on it. However, (i) the Trustee may refuse
to follow any direction that conflicts with law or this Indenture, that the Trustee determines may
be unduly prejudicial to the rights of other Holders or that may involve the Trustee in personal
liability, and (ii) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

     SECTION 6.6 Limitation on Suits.

     A Holder may pursue a remedy with respect to this Indenture or the Notes only if:

     (a) the Holder gives to the Trustee written notice of a continuing Event of Default or
the Trustee receives such notice from the Company;

     (b) the Holders of at least 25% in aggregate principal amount of the then outstanding
Notes make a written request to the Trustee to pursue the remedy;

-61-

 

     (c) such Holder or Holders offer and, if requested, provide to the Trustee indemnity or
security reasonably satisfactory to the Trustee against any loss, liability or expense;

     (d) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer and, if requested, the provision of such indemnity or security; and

     (e) during such 60-day period the Holders of a majority in aggregate principal amount
of the then outstanding Notes do not give the Trustee a direction inconsistent with the
request.

     A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

     SECTION 6.7 Rights of Holders of Notes To Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of principal, premium, if any, and interest on or after the respective due dates expressed
in the Note (including in connection with an offer to purchase), or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

     SECTION 6.8 Collection Suit by Trustee.

     If an Event of Default specified in Section 6.1(1) or (2) hereof occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Issuer for the whole amount of principal of, premium and interest remaining unpaid on
the Notes and interest on overdue principal and, to the extent lawful, interest and such further
amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

     SECTION 6.9 Trustee May File Proofs of Claim.

     The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders allowed in any judicial proceedings relative to the Issuer (or any other
obligor upon the Notes), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other securities or property payable or deliverable
upon the exchange of the Notes or on any such claims and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.8 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.8 hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     SECTION 6.10 Priorities.

     Any money collected by the Trustee (or received by the Trustee from the Collateral Agent under
any Security Documents) pursuant to this Article VI and any money or other property
distributable in respect of the Company’s obligations under this Indenture after an Event of
Default shall be applied in the following order, at the date or dates fixed by the Trustee and, in
case of the distribution of such money on account of principal (or premium, if any)

-62-

 

or interest, if any, upon presentation of the Notes and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

     First: to the Trustee (including any predecessor Trustee), its agents and attorneys
for amounts due under Section 7.8 hereof, including payment of all reasonable compensation,
expense and liabilities incurred, and all advances made, by the Trustee and the costs and
expenses of collection;

     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
premium, if any, and interest ratably, without preference or priority of any kind, according
to the amounts due and payable on the Notes for principal, premium, if any, and interest
respectively;

     Third: without duplication, to the Holders for any other Obligations owing to the
Holders under this Indenture and the Notes; and

     Fourth: to the Issuer or to such party as a court of competent jurisdiction shall
direct.

     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.10.

     SECTION 6.11 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.7 hereof, or a suit by Holders of
more than 10% in principal amount of the then outstanding Notes.

     SECTION 6.12 Appointment and Authorization of The Bank of New York Mellon Trust Company,
N.A. as Collateral Agent and Security Trustee.

     (a) The Bank of New York Mellon Trust Company, N.A. is hereby designated and appointed as the
Collateral Agent of the Holders under the Security Documents, and is hereby authorized and directed
as the Collateral Agent for such Holders to execute and enter into each of the Security Documents
and all other instruments relating to the Security Documents (including without limitation the
Intercreditor Agreement) and (i) to take action and exercise such powers as are expressly required
or permitted hereunder and under the Security Documents and all instruments relating hereto and
thereto and (ii) to exercise such powers and perform such duties as are in each case, expressly
delegated to the Collateral Agent by the terms hereof and thereof together with such other powers
as are reasonably incidental hereto and thereto. In addition, The Bank of New York Mellon Trust
Company, N.A. is hereby designated and appointed as the security trustee under the Fleet Mortgages
(in such capacity, the “Security Trustee”) and is hereby authorized and directed as the Security
Trustee to execute and enter into all instruments relating to the Fleet Mortgages and (i) to take
action and exercise such powers as are expressly required or permitted hereunder and under the
Fleet Mortgages and all instruments relating hereto and thereto and (ii) to exercise such powers
and perform such duties as are in each case, expressly delegated to the Security Trustee by the
terms hereof and thereof together with such other powers as are reasonably incidental hereto and
thereto.

     (b) Notwithstanding any provision to the contrary elsewhere in this Indenture or the Security
Documents, neither the Collateral Agent nor the Security Trustee shall have any duties or
responsibilities except those expressly set forth herein or therein or any fiduciary relationship
with any Holder, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Indenture or any Security Document or otherwise exist against
the Collateral Agent or the Security Trustee.

     (c) Each of the Collateral Agent and the Security Trustee may consult with counsel of its
selection and the advice or opinion of such counsel as to matters of law shall be full and complete
authorization and protec-

-63-

 

tion from liability in respect of any action taken, omitted or suffered by it hereunder or
under the Security Documents in good faith and in accordance with the advice or opinion of such
counsel.

ARTICLE VII

TRUSTEE

     SECTION 7.1 Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture and the Security Documents, and use the same
degree of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

     (b) Except during the continuance of an Event of Default:

     (i) the duties of the Trustee shall be determined solely by the express provisions of
this Indenture, the Security Documents and the TIA and the Trustee need perform only those
duties that are specifically set forth in this Indenture, the Security Documents and the TIA
and no others, and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and

     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture or the Security Documents. However, the Trustee shall be under a duty to examine
such certificates and opinions in the case of certificates or opinions specifically required
by any provision hereof to be furnished to it to determine whether or not they conform on
their face to the requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts or conclusions stated therein).

     (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

     (i) this paragraph does not limit the effect of paragraphs (b) or (e) of this Section
7.1;

     (ii) the Trustee shall not be liable for any error of judgment made in good faith by an
officer of the Trustee, unless it is proved that the Trustee was negligent in ascertaining
the pertinent facts; and

     (iii) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.5
hereof or otherwise in accordance with the direction of the Holders of a majority in
principal amount of outstanding Notes relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee or the Collateral Agent, under this Indenture or the Security
Documents.

     (d) Whether or not therein expressly so provided, every provision of this Indenture or any
provision of any Security Document that in any way relates to the Trustee or the Collateral Agent
is subject to Sections 7.1 and 7.2 hereof.

     (e) No provision of this Indenture or the Security Documents shall require the Trustee or the
Collateral Agent to expend or risk its own funds or incur any liability. The Trustee and the
Collateral Agent shall be under no obligation to exercise any of their rights and powers under this
Indenture or the Security Documents at the request of any Holders, unless such Holder shall have
offered to the Trustee and/or the Collateral Agent, as applicable, security and indemnity
satisfactory to it against any loss, liability or expense.

-64-

 

     (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Issuer. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     SECTION 7.2 Rights of Trustee.

     (a) The Trustee may conclusively rely and shall be fully protected in acting or refraining
from acting on any document believed by it to be genuine and to have been signed or presented by
the proper Person. The Trustee need not investigate any fact or matter stated in any such
document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel of the Trustee’s own choosing and the Trustee shall be fully protected
from liability in respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance on the advice or opinion of such counsel or on any Opinion of Counsel.

     (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any attorney or agent appointed with due care.

     (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture. Any request or direction of the Issuer mentioned herein shall be sufficiently evidenced
by an Officers’ Certificate and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution. Whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking, suffering or
omitting any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’
Certificate.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company or a Guarantor shall be sufficient if signed by an Officer of the
Company or such Guarantor.

     (f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless such Holders shall
have offered to the Trustee reasonable security and indemnity reasonably satisfactory to the
Trustee against the costs, expenses and liabilities that might be incurred by it in compliance with
such request or direction.

     (g) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or documents,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine during normal business hours the books, records and
premises of the Company or any Guarantor, personally or by agent or attorney at the sole cost of
the Company, and shall incur no liability or additional liability of any kind by reason of such
inquiry or investigation.

     (h) The rights, privileges, protections and benefits given to the Trustee, including, without
limitation, its rights to be indemnified, are extended to, and shall be enforceable by, the Trustee
in each of its capacities hereunder, and to each agent, custodian and other Persons employed to act
hereunder or under any Security Document (including, without limitation, the Collateral Agent).

     (i) The Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

-65-

 

     (j) The permissive right of the Trustee to take or refrain from taking any actions enumerated
in this Indenture or any Security Document shall not be construed as a duty.

     (k) In the event that the Trustee (in such capacity or in any other capacity hereunder or
under any Security Document) is unable to decide between alternative courses of action permitted
or required by the terms of this Indenture or any Security Document, or in the event that the
Trustee is unsure as to the application of any provision of this Indenture or any Security
Document, or believes any such provision is ambiguous as to its application, or is, or appears to
be, in conflict with any other applicable provision, or in the event that this Indenture or any
Security Document permits any determination by or the exercise of discretion on the part of the
Trustee or is silent or is incomplete as to the course of action that the Trustee is required to
take with respect to a particular set of facts, the Trustee shall promptly give notice (in such
form as shall be appropriate under the circumstances) to the Holders requesting instruction as to
the course of action to be adopted, and to the extent the Trustee acts in good faith in accordance
with any written instructions received from a majority in aggregate principal amount of the then
outstanding Notes, the Trustee shall not be liable on account of such action to any Person. If the
Trustee shall not have received appropriate instruction within 10 days of such notice (or such
shorter period as reasonably may be specified in such notice or as may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from taking such action as it
shall deem to be in the best interests of the Holders and the Owner Trustee shall have no liability
to any Person for such action or inaction.

     SECTION 7.3 Limitation on Duty of Trustee in Respect of Collateral; Indemnification.

     (a) Beyond the exercise of reasonable care in the custody thereof, the Trustee shall have no
duty as to any Collateral in its possession or control or in the possession or control of any agent
or bailee or any income thereon or as to preservation of rights against prior parties or any other
rights pertaining thereto and the Trustee shall not be responsible for filing any financing or
continuation statements or recording any documents or instruments in any public office at any time
or times or otherwise perfecting or maintaining the perfection of any security interest in the
Collateral. The Trustee shall be deemed to have exercised reasonable care in the custody of the
Collateral in its possession if the Collateral is accorded treatment substantially equal to that
which it accords its own property and shall not be liable or responsible for any loss or diminution
in the value of any of the Collateral, by reason of the act or omission of any carrier, forwarding
agency or other agent or bailee selected by the Trustee in good faith.

     (b) The Trustee shall not be responsible for the existence, genuineness or value of any of the
Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the
Collateral, whether impaired by operation of law or by reason of any action or omission to act on
its part hereunder, except to the extent such action or omission constitutes gross negligence or
willful misconduct on the part of the Trustee, for the validity or sufficiency of the Collateral or
any agreement or assignment contained therein, for the validity of the title of the Company to the
Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments or Liens
upon the Collateral or otherwise as to the maintenance of the Collateral.

     SECTION 7.4 Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or any Affiliate of the Issuer with the same rights it would
have if it were not Trustee. Any Agent may do the same with like rights and duties. However, in
the event that the Trustee acquires any conflicting interest as defined in Section 310(b) of the
TIA, it must eliminate such conflict within 90 days, apply to the Commission for permission to
continue as Trustee or resign. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

     SECTION 7.5 Trustee’s Disclaimer.

     The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, or the existence, genuineness, value or protection of any
Collateral (except for the safe custody of Collateral in its possession and the accounting for
Trust Monies actually received by it in accordance with the terms hereof) for the legality,
effectiveness or sufficiency of any Security Document, or for the creation, perfection, priority,
sufficiency or protection of any Note Lien, and it shall not be accountable for the Issuer’s use of the

-66-

 

proceeds from the Notes or any money paid to the Issuer or upon the Issuer’s direction under any
provision of this Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes, any statement or recital in any document
in connection with the sale of the Notes or pursuant to this Indenture other than its certificate
of authentication on the Notes.

     SECTION 7.6 Notice of Defaults.

     If a Default occurs and is continuing and if it is actually known to a Responsible Officer of
the Trustee, the Trustee shall mail to Holders a notice of the Default within 90 days after it
occurs. Except in the case of a Default in payment of principal of, premium, if any, or interest
on any Note, the Trustee may withhold the notice if and so long as the Trustee in good faith
determines that withholding the notice is in the interests of the Holders.

     SECTION 7.7 Reports by Trustee to Holders of the Notes.

     Within 60 days after each May 30 beginning with May 30, 2010, and for so long as Notes remain
outstanding, the Trustee shall mail to the Holders a brief report dated as of such reporting date
that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has occurred within the
twelve months preceding the reporting date, no report need be transmitted). The Trustee also shall
comply with TIA § 313(b). The Trustee shall also transmit by mail all reports as required by TIA §
313(c).

     A copy of each report at the time of its mailing to the Holders shall be mailed to the Company
and filed with the Commission and each stock exchange on which the Company has informed the Trustee
in writing the Notes are listed in accordance with TIA § 313(d). The Company shall promptly notify
the Trustee when the Notes are listed on any stock exchange and of any delisting thereof.

     SECTION 7.8 Compensation and Indemnity.

     The Issuer shall pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder in accordance with a separate fee agreement.
The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall reimburse the Trustee promptly upon request for all disbursements,
advances and expenses incurred or made by it in addition to the compensation for its services.
Such expenses shall include the reasonable compensation, disbursements and expenses of the
Trustee’s agents and counsel.

     The Issuer and the Guarantors, jointly and severally, shall indemnify the Trustee (which for
purposes of this Section 7.8 shall include its officers, directors, stockholders, employees and
agents) against any and all claims, damage, losses, liabilities or expenses incurred by it arising
out of or in connection with the acceptance or administration of its duties under this Indenture,
including the costs and expenses of enforcing this Indenture against the Issuer (including this
Section 7.8) and defending itself against any claim (whether asserted by the Issuer or any Holder
or any other Person) or liability in connection with the exercise or performance of any of its
powers or duties hereunder except to the extent any such loss, claim, damage, liability or expense
has been determined to have been caused by its own negligence or willful misconduct. The Trustee
shall notify the Issuer promptly of any claim of which a Responsible Officer has received written
notice for which it may seek indemnity. Failure by the Trustee to so notify the Issuer shall not
relieve the Issuer of its obligations hereunder. The Issuer shall defend the claim and the Trustee
shall cooperate in the defense. The Trustee may have separate counsel and the Issuer shall pay the
reasonable fees and expenses of one such counsel. The Issuer need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld.

     The obligations of the Issuer and the Guarantors under this Section 7.8 shall survive the
satisfaction and discharge or termination for any reason of this Indenture or the resignation or
removal of the Trustee.

     To secure the Issuer’s and the Guarantors’ obligations in this Section 7.8, the Trustee shall
have a Lien prior to the Notes on all money or property held or collected by the Trustee, except
that held in trust to pay principal

-67-

 

or interest, if any, on particular Notes. Such Lien shall survive the satisfaction and discharge
or termination for any reason of this Indenture and the resignation or removal of the Trustee.

     In addition, and without prejudice to the rights provided to the Trustee under any of the
provisions of this Indenture, when the Trustee incurs expenses or renders services after an Event
of Default specified in Section 6.1(8) hereof occurs, the expenses and the compensation for the
services (including the fees and expenses of its agents and counsel) are intended to constitute
expenses of administration under any Bankruptcy Code.

     “Trustee” for the purposes of this Section 7.8 shall include any predecessor Trustee and the
Trustee in each of its capacities hereunder and each agent, custodian and other person employed to
act hereunder or under any Security Document; provided, however, that the negligence or willful
misconduct of any Trustee hereunder shall not affect the rights of any other Trustee hereunder.

     The Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent applicable.

     SECTION 7.9 Replacement of Trustee.

     A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.9.

     The Trustee may resign in writing at any time and be discharged from the trust hereby created
by so notifying the Issuer. The Holders of a majority in principal amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Issuer in writing. The Issuer may
remove the Trustee if:

     (a) the Trustee fails to comply with Section 7.11 hereof;

     (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Code;

     (c) a Custodian or public officer takes charge of the Trustee or its property; or

     (d) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Issuer shall promptly appoint a successor Trustee. Within one year after the successor
Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes
may appoint a successor Trustee to replace the successor Trustee appointed by the Issuer.

     If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Issuer or the Holders of at least 10% in principal amount
of the then outstanding Notes may petition any court of competent jurisdiction, at the expense of
the Issuer, for the appointment of a successor Trustee.

     If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.11 hereof, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuer. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and the duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to the
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, provided that all sums owing to the Trustee hereunder have been paid and subject
to the Lien provided for in Section 7.8 hereof. Notwithstanding replacement of the Trustee
pursuant to this Section 7.9, the Issuer’s obligations under and the Lien provided for in Section
7.8 hereof shall continue for the benefit of the retiring Trustee.

-68-

 

     SECTION 7.10 Successor Trustee by Merger, Etc.

     If the Trustee or any Agent consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another Person, the successor Person without
any further act shall be the successor Trustee or any Agent, as applicable.

     SECTION 7.11 Eligibility; Disqualification.

     There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trust power and that is subject to supervision or examination
by federal or state authorities. The Trustee together with its affiliates shall at all times have
a combined capital surplus of at least $50.0 million as set forth in its most recent annual report
of condition.

     This Indenture shall always have a Trustee who satisfies the requirements of TIA §§ 310(a)(l),
(2) and (5). The Trustee is subject to TIA § 310(b) including the provision in § 310(b)(1);
provided that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
indentures under which other securities, or certificates of interest or participation in other
securities, of the Issuer or the Guarantors are outstanding if the requirements for exclusion set
forth in TIA § 310(b)(1) are met.

     SECTION 7.12 Preferential Collection of Claims Against the Issuer.

     The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA §
311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated therein.

     SECTION 7.13 Trustee’s Application for Instructions from the Issuer.

     Any application by the Trustee for written instructions from the Issuer may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under
this Indenture and the date on and/or after which such action shall be taken or such omission shall
be effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date specified in such
application (which date shall not be less than twenty Business Days after the date any officer of
the Issuer actually receives such application, unless any such officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

     SECTION 7.14 Limitation of Liability.

     In no event shall the Trustee, in its capacity as such or as Collateral Agent, Paying Agent or
Registrar or in any other capacity hereunder, be liable under or in connection with this Indenture
for indirect, special, incidental, punitive or consequential losses or damages of any kind
whatsoever, including but not limited to lost profits, whether or not foreseeable, even if the
Trustee has been advised of the possibility thereof and regardless of the form of action in which
such damages are sought. The Trustee shall not be responsible or liable for any failure or delay
in the performance of its obligations under this Indenture arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of
God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage;
epidemics; riots; interruptions; loss or malfunctions of utilities, computer (hardware or software)
or communication services; accidents; labor disputes; acts of civil or military authority and
governmental action. The provisions of this Section shall survive satisfaction and discharge or
the termination for any reason of this Indenture and the resignation or removal of the Trustee.

     SECTION 7.15 Collateral Agent.

     The rights, privileges, protections, immunities and benefits given to the Trustee, including,
without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the
Collateral Agent as if the Collateral Agent were named as the Trustee herein and the Security
Documents were named as this Indenture herein.

-69-

 

     SECTION 7.16 Co-Trustees; Separate Trustee; Collateral Agent.

     At any time or times, for the purpose of meeting the Legal Requirements of any jurisdiction in
which any of the Collateral may at the time be located, the Issuer, the Collateral Agent and the
Trustee shall have power to appoint, and, upon the written request of (i) the Trustee or the
Collateral Agent or (ii) the holders of at least 25% of the outstanding principal amount at
maturity of the Notes, the Issuer shall for such purpose join with the Trustee in the execution,
delivery and performance of all instruments and agreements necessary or proper to appoint, one or
more Persons approved by the Trustee either to act as co-trustee, jointly with the Trustee, or to
act as separate trustee, co-collateral agent, sub-collateral agent or separate collateral agent of
any such property, in either case with such powers as may be provided in the instrument of
appointment, and to vest in such Person or Persons in the capacity aforesaid, any property, title,
right or power deemed necessary or desirable, subject to the other provisions of this Section 7.16.
If the Issuer does not join in such appointment within 15 days after the receipt by it of a
request so to do, or in case an Event of Default has occurred and is continuing, the Trustee or the
Collateral Agent alone shall have power to make such appointment.

     Should any written instrument from the Issuer be requested by any co-trustee or separate
trustee or co-collateral agent, sub-collateral agent or separate collateral agent so appointed for
more fully confirming to such co-trustee or separate trustee such property, title, right or power,
any and all such instruments shall, on request of such co-trustee or separate trustee or separate
collateral agent, be executed, acknowledged and delivered by the Issuer.

     Any co-trustee, separate trustee or co-collateral agent, sub-collateral agent or separate
collateral agent shall agree in writing to be and shall be subject to the provisions of the
applicable Security Documents as if it were the Trustee thereunder (and the Trustee shall continue
to be so subject).

     Every co-trustee or separate trustee or co-collateral agent, sub-collateral agent or separate
collateral agent shall, to the extent permitted by law, but to such extent only, be appointed
subject to the following terms, namely:

     (a) The Notes shall be authenticated and delivered, and all rights, powers, duties and
obligations hereunder in respect of the custody of securities, cash and other personal
property held by, or required to be deposited or pledged with, the Trustee hereunder, shall
be exercised solely, by the Trustee.

     (b) The rights, powers, duties and obligations hereby conferred or imposed upon the
Trustee in respect of any property covered by such appointment shall be conferred or imposed
upon and exercised or performed by the Trustee or by the Trustee and such co-trustee or
separate trustee jointly, or by the Trustee and such co-collateral agent, sub-collateral
agent or separate collateral agent jointly as shall be provided in the instrument appointing
such co-trustee, separate trustee or separate collateral agent, except to the extent that
under any law of any jurisdiction in which any particular act is to be performed, the
Trustee shall be incompetent or unqualified to perform such act, in which event such rights,
powers, duties and obligations shall be exercised and performed by such co-trustee, separate
trustee or co-collateral agent, sub-collateral agent or separate collateral agent.

     (c) The Trustee at any time, by an instrument in writing executed by it, with the
concurrence of the Issuer evidenced by a Board Resolution, may accept the resignation of or
remove any co-trustee, separate trustee or co-collateral agent, sub-collateral agent or
separate collateral agent appointed under this Section 7.15, and, in case an Event of
Default has occurred and is continuing, the Trustee shall have power to accept the
resignation of, or remove, any such co-trustee, separate trustee or co-collateral agent,
sub-collateral agent or separate collateral agent without the concurrence of the Issuer.
Upon the written request of the Trustee, the Issuer shall join with the Trustee in the
execution, delivery and performance of all instruments and agreements necessary or proper to
effectuate such resignation or removal. A successor to any co-trustee, separate trustee or
co-collateral agent, sub-collateral agent or separate collateral agent so resigned or
removed may be appointed in the manner provided in this Section 7.16.

     (d) No co-trustee, separate trustee or co-collateral agent, sub-collateral agent or
separate collateral agent hereunder shall be liable by reason of any act or omission of the
Trustee, or any other such

-70-

 

trustee, co-trustee, separate trustee, co-collateral agent, sub-collateral agent or separate
collateral agent hereunder.

     (e) The Trustee shall not be liable by reason of any act or omission of any co-trustee,
separate trustee, co-collateral agent, sub-collateral agent or separate collateral agent.

     (f) Any act of holders delivered to the Trustee shall be deemed to have been delivered
to each such co-trustee, separate trustee or co-collateral agent, sub-collateral agent or
separate collateral agent, as the case may be.

ARTICLE VIII

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 8.1 Option To Effect Legal Defeasance or Covenant Defeasance.

     The Issuer may, at the option of its Board of Directors evidenced by a Board Resolution set
forth in an Officers’ Certificate, at any time, elect to have either Section 8.2 or 8.3 hereof
applied to all outstanding Notes upon compliance with the conditions set forth below in this
Article VIII.

     SECTION 8.2 Legal Defeasance.

     Upon the Issuer’s exercise under Section 8.1 hereof of the option applicable to this Section
8.2, the Issuer shall, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, be deemed to have been discharged from its obligations with respect to all outstanding
Notes on the date the conditions set forth below are satisfied (hereinafter, “legal defeasance”).
For this purpose, legal defeasance means that the Issuer shall be deemed to have paid and
discharged the entire Debt represented by the outstanding Notes, which shall thereafter be deemed
to be “outstanding” only for the purposes of Section 8.5 hereof and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all of its other obligations
under such Notes and this Indenture (and the Trustee, on written demand of and at the expense of
the Issuer, shall execute proper instruments acknowledging the same), except for the following
provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights
of Holders of outstanding Notes to receive payments in respect of the principal of, premium, if
any, and interest, if any, on such Notes when such payments are due from the trust referred to in
Section 8.4(1); (b) the Issuer’s obligations with respect to such Notes under Sections 2.2, 2.3,
2.4, 2.5, 2.6, 2.7, 2.10 and 4.2 hereof; (c) the rights, powers, trusts, benefits and immunities of
the Trustee, including without limitation thereunder, under Section 7.8, 8.5 and 8.7 hereof and the
Issuer’s obligations in connection therewith; (d) the Company’s rights pursuant to Section 3.7; and
(e) the provisions of this Article VIII. Subject to compliance with this Article
VIII, the Issuer may exercise its option under this Section 8.2 notwithstanding the prior
exercise of its option under Section 8.3 hereof.

     SECTION 8.3 Covenant Defeasance.

     Upon the Issuer’s exercise under Section 8.1 hereof of the option applicable to this Section
8.3, the Issuer shall, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, be released from its obligations under the covenants contained in Sections 4.3, 4.4, 4.7,
4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.20, 4.21, 4.23 and 5.1 hereof with
respect to the outstanding Notes on and after the date the conditions set forth below are satisfied
(hereinafter, “covenant defeasance” and, together with legal defeasance, “defeasance”), and the
Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver,
consent or declaration or act of Holders (and the consequences of any thereof) in connection with
such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it
being understood that such Notes shall not be deemed outstanding for accounting purposes). For
this purpose, covenant defeasance means that, with respect to the outstanding Notes, the Issuer or
any of its Subsidiaries may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or indirectly, by reason
of any reference elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such omission to comply shall
not constitute a Default or an Event of Default under Section 6.1 hereof, but, except as specified
above, the remainder of this Indenture and such Notes shall

-71-

 

be unaffected thereby. In addition, upon the Issuer’s exercise under Section 8.1 hereof of the
option applicable to this Section 8.3, subject to the satisfaction of the conditions set forth in
Section 8.4 hereof, Sections 6.1(3), (4), (5), (6), (7) and (9) hereof shall not constitute Events
of Default.

     SECTION 8.4 Conditions to Legal Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of either Section 8.2 or 8.3 hereof
to the outstanding Notes:

     In order to exercise either legal defeasance or covenant defeasance:

     (1) the Issuer must irrevocably have deposited or caused to be deposited with the
Trustee as trust funds in trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to the benefits of the Holders of
such Notes: (A) money in an amount, or (B) U.S. government obligations which through the
scheduled payment of principal and interest in respect thereof in accordance with their
terms will provide, not later than the due date of any payment, money in an amount or (C) a
combination thereof, in each case sufficient without reinvestment, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which shall be
applied by the Trustee to pay and discharge, the entire indebtedness in respect of the
principal of and premium, if any, and interest on such Notes on the Stated Maturity thereof
or (if the Issuer has made irrevocable arrangements satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name and at the expense of the Issuer)
the redemption date thereof, as the case may be, in accordance with the terms of this
Indenture and such Notes;

     (2) in the case of legal defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel stating that (A) the Issuer has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since the date of this Indenture,
there has been a change in the applicable United States federal income tax law, in either
case (A) or (B) to the effect that, and based thereon such opinion shall confirm that, the
Holders of such Notes will not recognize gain or loss for United States federal income tax
purposes as a result of the deposit, legal defeasance and discharge to be effected with
respect to such Notes and will be subject to United States federal income tax on the same
amount, in the same manner and at the same times as would be the case if such deposit, legal
defeasance and discharge were not to occur;

     (3) in the case of covenant defeasance, the Issuer shall have delivered to the Trustee
an Opinion of Counsel to the effect that the Holders of such outstanding Notes will not
recognize gain or loss for United States federal income tax purposes as a result of the
deposit and covenant defeasance to be effected with respect to such Notes and will be
subject to federal income tax on the same amount, in the same manner and at the same times
as would be the case if such deposit and covenant defeasance were not to occur;

     (4) no Default or Event of Default with respect to the outstanding Notes shall have
occurred and be continuing at the time of such deposit after giving effect thereto (other
than a Default or Event of Default resulting from the borrowing of funds to be applied to
such deposit and the grant of any Lien to secure such borrowing);

     (5) such legal defeasance or covenant defeasance shall not cause the Trustee to have a
conflicting interest within the meaning of the TIA (assuming all Notes are in default within
the meaning of the TIA);

     (6) such legal defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a default under, any material agreement or material instrument
(other than this Indenture) to which the Company is a party or by which the Company is
bound; and

-72-

 

     (7) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such legal
defeasance or covenant defeasance have been complied with.

     Notwithstanding the foregoing, the Opinion of Counsel required by clause (2) above with
respect to a legal defeasance need not to be delivered if all Notes not therefore delivered to the
Trustee for cancellation (x) have become due and payable, or (y) will become due and payable at
Stated Maturity within one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the Company.

     SECTION 8.5 Deposited Money and Government Securities To Be Held in Trust; Other Miscellaneous Provisions.

     Subject to Section 8.6 hereof, all money and non-callable U.S. government obligations
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.5, the “Trustee”) pursuant to Section 8.4 hereof in
respect of the outstanding Notes shall be held in trust, shall not be invested, and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company or any Subsidiary acting as Paying
Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.

     The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable U.S. government obligations deposited pursuant to
Section 8.4 hereof or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

     Anything in this Article VIII to the contrary notwithstanding, the Trustee shall
deliver or pay to the Issuer from time to time upon the written request of the Issuer and be
relieved of all liability with respect to any money or non-callable U.S. government obligations
held by it as provided in Section 8.4 hereof which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 8.4(1) hereof), are in excess of the
amount thereof that would then be required to be deposited to effect an equivalent legal defeasance
or covenant defeasance.

     SECTION 8.6 Repayment to Issuer.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Issuer, in trust
for the payment of the principal of, premium, if any, or interest, if any, on any Note and
remaining unclaimed for one year after such principal and premium, if any, or interest has become
due and payable shall be paid to the Issuer on its written request or (if then held by the Issuer)
shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured
general creditor, look only to the Issuer for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Issuer as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Issuer cause to be published
once, in The New York Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which shall not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such money then
remaining shall be repaid to the Issuer.

     SECTION 8.7 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
U.S. government obligations in accordance with Section 8.2 or 8.3 hereof, as the case may be, by
reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the obligations of the Issuer under this Indenture and
the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.2
or 8.3 hereof until such time as the Trustee or Paying Agent is permitted to apply all

-73-

 

such money in accordance with Section 8.2 or 8.3 hereof, as the case may be; provided, however,
that, if the Issuer makes any payment of principal of, premium, if any, or interest on any Note
following the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the
Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

     SECTION 8.8 Discharge.

     The Issuer and the Guarantors may terminate the obligations under this Indenture (a
“Discharge”) when:

     (1) either: (A) all Notes theretofore authenticated and delivered have been delivered
to the Trustee for cancellation, or (B) all such Notes not theretofore delivered to the
Trustee for cancellation (i) have become due and payable or (ii) will become due and payable
within one year or are to be called for redemption within one year under irrevocable
arrangements satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company, and the Company has irrevocably
deposited or caused to be deposited with the Trustee funds in an amount sufficient to pay
and discharge the entire indebtedness on the Notes, not theretofore delivered to the Trustee
for cancellation, for principal of, premium, if any, and interest to the Stated Maturity or
date of redemption;

     (2) the Issuer or any Guarantor has paid or caused to be paid all other sums then due
and payable under this Indenture by the Issuer;

     (3) the deposit will not result in a breach or violation of, or constitute a default
under, any other material instrument (other than this Indenture) to which the Issuer or any
Guarantor is a party or by which the Issuer or any Guarantor is bound;

     (4) the Issuer has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be; and

     (5) the Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel reasonably acceptable to the Trustee, each stating that all conditions precedent
under this Indenture relating to the Discharge have been complied with.

     The Issuer may elect, at its option, to have its obligations discharged with respect to the
outstanding Notes. Such legal defeasance means that the Issuer will be deemed to have paid and
discharged the entire indebtedness represented by the outstanding Notes, except for:

     (1) the rights of Holders of such Notes to receive payments in respect of the principal
of and any premium and interest on such Notes when payments are due,

     (2) the Issuer’s obligations with respect to such Notes concerning issuing temporary
Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance
of an office or agency for payment and money for security payments held in trust,

     (3) the rights, powers, trusts, benefits and immunities of the Trustee,

     (4) the Company’s right of optional redemption, and

     (5) the defeasance provisions of this Indenture.

ARTICLE IX

AMENDMENT, SUPPLEMENT AND WAIVER

-74-

 

     SECTION 9.1 Without Consent of Holders of the Notes.

     Notwithstanding Section 9.2 of this Indenture, without the consent of any Holders, the Issuer,
the Guarantors and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental to this Indenture, the Guarantees and the Security Documents for any of the
following purposes:

     (1) to evidence the succession of another Person to the Company or any Guarantor and
the assumption by any such successor of the covenants of the Company or such Guarantor in
this Indenture, the Guarantees, the Security Documents and the Notes;

     (2) to add to the covenants of the Company or the Guarantors for the benefit of the
Holders, or to surrender any right or power herein conferred upon the Issuer or the
Guarantors;

     (3) to add additional Events of Default;

     (4) to provide for uncertificated Notes in addition to or in place of the certificated
Notes;

     (5) to evidence and provide for the acceptance of appointment under this Indenture and
the Security Documents by a successor Trustee or Collateral Agent;

     (6) to provide for or confirm the issuance of Additional Notes in accordance with the
terms of this Indenture;

     (7) to add to the Collateral securing the Notes, to add a Guarantor or to release a
Guarantor in accordance with this Indenture;

     (8) to cure any ambiguity, defect, omission, mistake or inconsistency;

     (9) to make any other provisions with respect to matters or questions arising under
this Indenture, provided that such actions pursuant to this clause shall not adversely
affect the interests of the Holders in any material respect, as determined in good faith by
the Board of Directors of American Commercial Lines;

     (10) to conform the text of this Indenture, the Security Documents or the Notes to any
provision of the “Description of the Notes” in the Offering Memorandum to the extent that
the Trustee has received an Officers’ Certificate stating that such text constitutes an
unintended conflict with the description of the corresponding provision in the “Description
of the Notes”;

     (11) to mortgage, pledge, hypothecate or grant any other Lien in favor of the
Collateral Agent for the benefit of the Trustee on behalf of the Holders of the Notes, as
additional security for the payment and performance of all or any portion of the Note
Obligations under this Indenture and the Notes, in any property or assets, including any
which are required to be mortgaged, pledged or hypothecated, or in which a Lien is required
to be granted to or for the benefit of the Trustee or the Collateral Agent pursuant to this
Indenture, any of the Security Documents or otherwise;

     (12) to provide for the release of Collateral from the Lien of this Indenture and the
Security Documents when permitted or required by the Security Documents, the Intercreditor
Agreement or this Indenture; or

     (13) to secure any Permitted Additional Pari Passu Obligations under the Security
Documents and to appropriately include the same in the Intercreditor Agreement.

-75-

 

     SECTION 9.2 With Consent of Holders of Notes.

     With the consent of the Holders of not less than a majority in aggregate principal amount of
the outstanding Notes, the Issuer, the Guarantors and the Trustee may enter into an indenture or
indentures supplemental to this Indenture or amend the Security Documents and the Intercreditor
Agreement (together with the other consents required thereby) for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or
the Notes or of modifying in any manner the rights of the Holders under this Indenture, including
the definitions herein; provided, however, that no such supplemental indenture or amendment shall,
without the consent of the Holder of each outstanding Note affected thereby:

     (1) change the Stated Maturity of any Note or of any installment of interest on any
Note, or reduce the amount payable in respect of the principal thereof or the rate of
interest thereon or any premium payable thereon, or reduce the amount that would be due and
payable on acceleration of the maturity thereof, or change the place of payment where, or
the coin or currency in which, any Note or any premium or interest thereon is payable, or
impair the right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof, or change the date on which any Notes may be subject to redemption
or reduce the Redemption Price therefor,

     (2) reduce the percentage in aggregate principal amount of the outstanding Notes, the
consent of whose Holders is required for any such supplemental indenture or amendment, or
the consent of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture,

     (3) modify the obligations of the Company to make Offers to Purchase upon a Change of
Control or from the Excess Proceeds of Asset Sales or Excess Loss Proceeds from an Event of
Loss if such modification was done after the occurrence of such Change of Control, Asset
Sale or Event of Loss, as applicable,

     (4) subordinate, in right of payment, the Notes to any other Debt of the Company,

     (5) modify any of the provisions of this paragraph or provisions relating to waiver of
defaults or certain covenants, except to increase any such percentage required for such
actions or to provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each outstanding Note affected thereby, or

     (6) release any Guarantees required to be maintained under this Indenture (other than
in accordance with the terms of this Indenture).

     In addition, any amendment to, or waiver of, the provisions of this Indenture or any Security
Document that has the effect of releasing all or substantially all of the Collateral from the Liens
securing the Notes or otherwise modifying the Intercreditor Agreement in any manner adverse in any
material respect to the Holders of the Notes will require the consent of the Holders of at least 66
2/3% in aggregate principal amount of the Notes then outstanding.

     The Holders of not less than a majority in aggregate principal amount of the outstanding Notes
may on behalf of the Holders of all the Notes waive any past default under this Indenture and its
consequences, except a default:

     (1) in any payment in respect of the principal of (or premium, if any) or interest on
any Notes (including any Note which is required to have been purchased pursuant to an Offer
to Purchase which has been made by the Issuer), or

     (2) in respect of a covenant or provision hereof which under this Indenture cannot be
modified or amended without the consent of the Holder of each outstanding Note affected.

-76-

 

     SECTION 9.3 Compliance with Trust Indenture Act.

     Every Amendment or Supplement to this Indenture or the Notes shall be set forth in an amended
or supplemental indenture that complies with the TIA as then in effect.

     SECTION 9.4 Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder and every subsequent Holder of that Note or portion of
the Note that evidences the same debt as the consenting Holder’s Note, even if notation of the
consent is not made on the Note. However, any such Holder or subsequent Holder may revoke the
consent as to its Note if the Trustee receives written notice of revocation before the date the
waiver, supplement or amendment becomes effective. When an amendment, supplement or waiver becomes
effective in accordance with its terms, it thereafter binds every Holder.

     The Issuer may, but shall not be obligated to, fix a record date for determining which Holders
consent to such amendment, supplement or waiver. If the Issuer fixes a record date, the record
date shall be fixed at (i) the later of 30 days prior to the first solicitation of such consent or
the date of the most recent list of Holders furnished for the Trustee prior to such solicitation
pursuant to Section 2.5 hereof or (ii) such other date as the Issuer shall designate.

     SECTION 9.5 Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Issuer in exchange for all Notes may issue and the Trustee
shall authenticate new Notes that reflect the amendment, supplement or waiver.

     Failure to make the appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

     After any amendment, supplement or waiver becomes effective, the Company shall mail to Holders
a notice briefly describing such amendment, supplement or waiver. The failure to give such notice
shall not affect the validity and effect of such amendment, supplement or waiver.

     SECTION 9.6 Trustee To Sign Amendments, Etc.

     The Trustee shall sign any amended or supplemental indenture authorized pursuant to this
Article IX if the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. The Issuer and the Guarantors may not sign an amendment
or supplemental indenture until their respective Boards of Directors approve it. In signing or
refusing to sign any amendment or supplemental indenture the Trustee shall be given and (subject to
Section 7.1 hereof) shall be fully protected in relying upon an Officers’ Certificate and an
Opinion of Counsel stating that the execution of such amendment or supplemental indenture is
authorized or permitted by this Indenture, that all conditions precedent thereto have been met or
waived, that such amendment or supplemental indenture is not inconsistent herewith, and that it
will be valid and binding upon the Issuer in accordance with its terms.

ARTICLE X

SECURITY

     SECTION 10.1 Security Documents; Additional Collateral.

     (a) Security Documents. In order to secure the due and punctual payment of the Note
Obligations and any Permitted Additional Pari Passu Obligations, in the case of the Issuer,
American Commercial Lines, the Guarantors, the Collateral Agent and the other parties thereto have
simultaneously with the execution of this Indenture entered or, in accordance with the provisions
of Section 4.20, Section 4.23 and this Article X will enter into the Security Documents.

-77-

 

     (b) Additional Collateral. (i) Subject to the applicable provisions of the applicable
Security Documents, promptly following the acquisition by American Commercial Lines, the Company or
any Restricted Subsidiary of any property that is intended to be subject to the Lien created by any
Security Documents but is not so subject, or (ii) contemporaneously with the grant of any
additional Liens on any property by American Commercial Lines, the Company or any Restricted
Subsidiary to secure Obligations Incurred pursuant to clause (i) or (ix) of the definition of
“Permitted Debt”, provided that such Liens are subject to the provisions of the Intercreditor
Agreement, in the case of both (i) and (ii) above, to the extent required by such Security
Document, the applicable Issuer or Guarantor will execute and deliver to the Collateral Agent such
amendments or supplements to the relevant Security Documents or such other documents (including
certificates, legal opinions and surveys, as necessary) as the Collateral Agent may deem necessary
or advisable to grant to the Collateral Agent a Lien on such property subject to no Liens other
than Permitted Collateral Liens, and take all actions necessary to cause such Lien to be duly
perfected to the extent required by such Security Document in accordance with all applicable
requirements of law, including the filing of mortgages, deeds of trust, financing statements or
other instruments or documents in such jurisdictions as necessary or as may be reasonably requested
by the Collateral Agent. The Company shall otherwise take such actions and execute and/or deliver
to the Collateral Agent such documents as necessary or as the Collateral Agent shall require to
confirm the validity, perfection and priority of the Lien of the Security Documents on such
after-acquired properties.

     SECTION 10.2 Recording, Registration and Opinions.

     The Issuer, American Commercial Lines and the Guarantors shall, make all filings (including
filings of continuation statements and amendments to financing statements that may be necessary to
continue the effectiveness of such financing statements) or recordings and take all other actions
as are necessary or required by the Security Documents to maintain (at the sole cost and expense of
the Issuer) the security interest created by the Security Documents in the Collateral (other than
with respect to any Collateral the security interest in which is not required to be perfected under
the Security Documents) as a perfected first priority security interest (with respect to priority,
first priority only after the Senior Discharge Date) subject only to Permitted Collateral Liens.
The Issuer and the Guarantors shall furnish to the Trustee at least thirty (30) days prior to the
anniversary of the Issue Date in each year an Opinion of Counsel, dated as of such date, either (i)
(x) stating that, in the opinion of such counsel, such action has been taken with respect to the
recording, filing, re-recording, and refiling of this Indenture or the Security Documents, as
applicable, as are necessary to maintain the perfected Liens of the applicable Security Documents
securing the Note Obligations under applicable law to the extent required by the Security Documents
other than any action as described therein to be taken and such opinion may refer to prior Opinions
of Counsel and contain customary qualifications and exceptions and may rely on an Officers’
Certificate of the Issuer, and (y) stating that on the date of such Opinion of Counsel, all
financing statements, financing statement amendments and continuation statements have been or will
be executed and filed that are necessary, as of such date or promptly thereafter and during the
succeeding 12 months, fully to maintain the perfection (to the extent required by the Security
Documents) of the security interests of the Collateral Agent securing the Note Obligations
thereunder and under the Security Documents with respect to the Collateral and such Opinion of
Counsel may contain customary qualifications and exceptions and may rely on an Officers’
Certificate; provided that if there is a required filing of a continuation statement or other
instrument within such 12 month period and such continuation statement or amendment is not
effective if filed at the time of the opinion, such opinion may so state and in that case the
Issuer and the Guarantors shall cause a continuation statement or amendment to be timely filed so
as to maintain such Liens and security interests securing Note Obligations or (ii) stating that, in
the opinion of such counsel, no such action is necessary to maintain such Liens or security
interests.

     SECTION 10.3 Releases of Collateral.

     The Liens securing the Notes and the Guarantees will, automatically and without the need for
any further action by any Person be released:

     (a) in whole or in part, as applicable, as to all or any portion of property subject to
such Liens which has been taken by eminent domain, condemnation or other similar
circumstances,

     (b) in whole, upon:

-78-

 

     (i) Discharge of this Indenture under Section 8.8 hereof; or

     (ii) a legal defeasance or covenant defeasance of this Indenture under
Article VIII hereof;

     (c) in part, as to any property that (i) is sold, transferred or otherwise disposed of
by the Company or any Guarantor (other than to the Company or another Guarantor) in a
transaction not prohibited by this Indenture, at the time of such transfer or disposition,
(ii) is owned or at any time acquired by a Guarantor that has been released from its
Guarantee, concurrently with the release of such Guarantee or (iii) at any time becomes an
Excluded Asset pursuant to a transaction not prohibited by this Indenture;

     (d) pursuant to Article IX; and

     (e) in part, in accordance with the applicable provisions of the Security Documents and
the Intercreditor Agreement.

     A release of Collateral pursuant to the provisions of this Indenture and the Security
Documents shall not be deemed to impair the security under the lien of the Collateral and any
Person that is required to deliver an Officers’ Certificate or Opinion of Counsel pursuant to
Section 314(d) of the TIA shall be entitled to rely on the foregoing as a basis for delivery of
such Officers’ Certificate or Opinion of Counsel.

     Notwithstanding anything to the contrary herein, the Company and the Guarantors will not be
required to comply with all or any portion of Section 314(d) of the TIA if they determine, in good
faith based on advice of counsel, that under the terms of that section and/or any interpretation or
guidance as to the meaning thereof of the Commission and its staff, including “no action” letters
or exemptive orders, all or any portion of Section 314(d) of the TIA is inapplicable to the
released Collateral. Without limiting the generality of the foregoing, certain no-action letters
issued by the Commission have permitted an indenture qualified under the TIA to contain provisions
permitting the release of collateral from Liens under such indenture in the ordinary course of the
Company’s business without requiring the Company to provide certificates and other documents under
Section 314(d) of the TIA.

     If any Collateral is released in accordance with any of the Security Documents (other than as
permitted by this Indenture) and if the Company or the applicable Guarantor has delivered the
certificates and documents required by the Security Documents, the Trustee will determine whether
it has received all documentation required by Section 314(d) of the TIA (to the extent applicable)
in connection with such release.

     Notwithstanding any other provision of this Indenture, to the extent necessary and for so long
as required for a Subsidiary of the Company not to be subject to any requirement pursuant to Rule
3-16 of Regulation S-X under the Securities Act (or any other law, rule or regulation) to file
separate financial statements of such Subsidiary with the SEC (or any other governmental agency),
the Capital Stock and other securities of such Subsidiary shall not be included in the Collateral
with respect to the Notes and shall not be subject to the Liens securing such Notes and the Note
Obligations in accordance with, and only to the extent provided in, each of Section 2.01 of the
Security Agreement and Section 2 of the Pledge Agreement. For purposes of this paragraph,
“securities” has the meaning ascribed to such term for purposes of Rule 3-16 of Regulation S-X
under the Securities Act.

     SECTION 10.4 Form and Sufficiency of Release.

     In the event that either Issuer or any Guarantor has sold, exchanged, or otherwise disposed of
or proposes to sell, exchange or otherwise dispose of any portion of the Collateral that, under the
terms of this Indenture may be sold, exchanged or otherwise disposed of by the Issuer or any
Guarantor, and the Issuer or such Guarantor requests the Trustee to furnish a written disclaimer,
release or quitclaim of any interest in such property under this Indenture, the applicable
Guarantee and the Security Documents, upon receipt of an Officers’ Certificate and Opinion of
Counsel (the latter of which, to the extent consistent with applicable provisions of the TIA and
otherwise in accordance with the Senior Secured Note Documents, shall only be required if the Fair
Market Value of the property that is subject to the Lien to be released exceeds $5.0 million and
shall be deliverable by the Company, unless the Company elects otherwise) to the effect that such
release complies with Section 10.3 and specifying the provision in Section

-79-

 

10.3 pursuant to which such release is being made (upon which the Trustee may exclusively and
conclusively rely), the Trustee shall execute, acknowledge and deliver to the Issuer or such
Guarantor (or instruct the Collateral Agent to do the same) such an instrument in the form provided
by the Issuer, and providing for release without recourse and shall take such other action as the
Issuer or such Guarantor may reasonably request and as necessary to effect such release. Before
executing, acknowledging or delivering any such instrument, the Trustee shall be furnished with an
Officers’ Certificate and an Opinion of Counsel (on which the Trustee shall be entitled to
conclusively and exclusively rely), as applicable, each stating that such release is authorized
and permitted by the terms hereof and the Security Documents and that all conditions precedent with
respect to such release have been complied with.

     SECTION 10.5 Possession and Use of Collateral.

     Subject to the provisions of the Security Documents, the Company and the Guarantors shall have
the right to remain in possession and retain exclusive control of and to exercise all rights with
respect to the Collateral (other than Trust Monies held by the Collateral Agent, other monies or
U.S. government obligations deposited pursuant to Article VIII, and other than as set forth
in the Security Documents and this Indenture), to operate, manage, develop, lease, use, consume and
enjoy the Collateral (other than Trust Monies held by the Collateral Agent, other monies and U.S.
government obligations deposited pursuant to Article VIII and other than as set forth in
the Security Documents and this Indenture), to alter or repair any Collateral so long as such
alterations and repairs do not impair the Lien of the Security Documents thereon, and otherwise
comply with Section 10.7 hereof, and to collect, receive, use, invest and dispose of the
reversions, remainders, interest, rents, lease payments, issues, profits, revenues, proceeds and
other income thereof.

     SECTION 10.6 [Intentionally Omitted].

     SECTION 10.7 [Intentionally Omitted].

     SECTION 10.8 Purchaser Protected.

     No purchaser or grantee of any property or rights purporting to be released shall be bound to
ascertain the authority of the Trustee to execute the release or to inquire as to the existence of
any conditions herein prescribed for the exercise of such authority so long as the conditions set
forth in Section 10.4 have been satisfied.

     SECTION 10.9 Authorization of Actions To Be Taken by the Collateral Agent Under the Security Documents.

     The holders of Notes agree that the Collateral Agent shall be entitled to the rights,
privileges, protections, immunities, indemnities and benefits provided to the Collateral Agent by
the Security Documents. Furthermore, each holder of a Note, by accepting such Note, consents to
the terms of and authorizes and directs the Trustee (in each of its capacities including, but not
limited to, Security Trustee under the Fleet Mortgages) and the Collateral Agent to enter into and
perform the Security Documents (including without limitation the Intercreditor Agreement and the
Fleet Mortgages) in each of its capacities thereunder.

     SECTION 10.10 Authorization of Receipt of Funds by the Trustee Under the Security Agreement.

     The Trustee is authorized to receive any funds for the benefit of holders distributed under
the Security Documents to the Trustee, to apply such funds as provided in Section 6.10.

     SECTION 10.11 Powers Exercisable by Receiver or Collateral Agent.

     In case the Collateral shall be in the possession of a receiver or trustee, lawfully
appointed, the powers conferred in this Article X upon the Issuer or any Guarantor, as
applicable, with respect to the release, sale or other disposition of such Property may be
exercised by such receiver or trustee, and an instrument signed by such receiver or trustee shall
be deemed the equivalent of any similar instrument of the Issuer or any Guarantor, as applicable,
or of any officer or officers thereof required by the provisions of this Article X.

-80-

 

ARTICLE XI

APPLICATION OF TRUST MONIES

     SECTION 11.1 Collateral Account.

     No later than 30 days following the first date on which the Trustee receives any Trust Monies
there shall be established and, at all times thereafter until this Indenture shall have terminated,
there shall be maintained with the Collateral Agent the Collateral Account. The Collateral Account
shall be established and maintained by the Collateral Agent at the office of the Collateral Agent
or as a deposit account or securities account subject to a control agreement in favor of the
Collateral Agent. The Company shall cause all Trust Monies to be deposited in the Collateral
Account and thereafter shall be held by and under the sole dominion and control of the Collateral
Agent for its benefit and for the benefit of the Secured Parties (as defined in the Security
Agreement) as a part of the Collateral until released in accordance with this Article.

     SECTION 11.2 Withdrawal of Loss Proceeds.

     To the extent that any Trust Monies consist of Net Loss Proceeds, such Trust Monies may be
withdrawn by the Issuer and shall be paid by the Collateral Agent (upon the direction of the
Trustee) upon a written request by the Issuer delivered to the Trustee and the Collateral Agent to
reimburse the Issuer or Guarantor for expenditures made, or to pay costs incurred, by the Issuer or
such Guarantor in connection with a reinvestment complying with Section 4.16, upon receipt by the
Trustee and the Collateral Agent of the following:

     (a) An Officers’ Certificate, dated not more then 30 days prior to the date of the
application for the withdrawal and payment of such Trust Monies setting forth:

     (i) that the Net Loss Proceeds have been or will be reinvested in compliance
with Section 4.16 (and containing a brief description of the amount and manner of
reinvestment of such Net Loss Proceeds);

     (ii) that no part of such Net Loss Proceeds has been or is being made the basis
for the withdrawal of any Trust Monies in any previous or then pending application
pursuant to this Section 11.2;

     (iii) that no part of such Net Loss Proceeds has been paid out of the proceeds
of insurance upon any part of the Collateral not required to be paid to the
Collateral Agent under the Security Documents;

     (iv) that no Default or Event of Default shall have occurred and be continuing;
and

     (v) that all conditions precedent herein provided for relating to such
withdrawal and payment have been complied with;

     (b) An Opinion of Counsel substantially stating:

     (i) that the instruments that have been or are therewith delivered to the
Trustee comply as to form to the requirements of this Indenture and the other
Security Documents, and that, upon the basis thereof and the accompanying documents
specified in this Section 11.2 and assuming the correctness and accuracy of such
documents, all conditions precedent herein provided for relating to such withdrawal
and payment have been satisfied and such withdrawal and payment is permitted under
this Section 11.2; and

     (ii) that the relevant Security Documents (including upon the execution, filing
and/or delivery, as applicable, of any documents contemplated by the Security
Documents) create

-81-

 

a valid, binding and enforceable Lien on and security interest in such reinvestment
in favor of the Collateral Agent in favor of the Holders.

Upon compliance with the foregoing provisions of this Section 11.2 and Section 11.1, the Collateral
Agent shall, upon receipt of a written request by the Issuer (which may be contained on the
Officers’ Certificate), pay an amount of Net Loss Proceeds constituting Trust Monies equal to the
amount of the reinvestment stated in the Officers’ Certificate required by clause (i) of paragraph
(a) of this Section 11.2 as directed by the Issuer.

     SECTION 11.3 Withdrawal of Net Cash Proceeds To Fund an Asset Sale Offer or
Net Loss Proceeds To Fund an Event of Loss Offer.

     To the extent that any Trust Monies consist of Net Cash Proceeds received by the Collateral
Agent pursuant to the provisions of Section 4.10 hereof or Net Loss Proceeds received by the
Collateral Agent pursuant to the provisions of Section 4.16 hereof and an Asset Sale Offer or Event
of Loss Offer, as applicable, has been made in accordance therewith, such Trust Monies may be
withdrawn by the Issuer and shall be paid by the Trustee to the Paying Agent for application in
accordance with Section 4.10 or 4.16 upon written notice by the Issuer to the Trustee and upon
receipt by the Trustee and the Collateral Agent of the following:

     An Officers’ Certificate, dated not more than three days prior to the Purchase Date,
stating:

     (i) that no Default or Event of Default shall have occurred and be continuing;

     (ii) (x) that such Trust Monies constitute Net Cash Proceeds or Net Loss
Proceeds, as applicable, (y) that pursuant to and in accordance with Section 4.10 or
4.16, the Issuer has made an Asset Sale Offer or Event of Loss Offer and (z) the
amount of Excess Cash Proceeds or Excess Loss Proceeds, as applicable, to be applied
to the repurchase of the Notes and Permitted Additional Pari Passu Obligations
pursuant to the Asset Sale Offer or Event of Loss Offer;

     (iii) the Purchase Date; and

     (iv) that all conditions precedent and covenants herein provided for relating
to such application of Trust Monies have been complied with.

     Upon compliance with the foregoing provisions of this Section 11.3, the Trustee shall apply
the Trust Monies as directed and specified by the Issuer, subject to Section 4.10 and Section 4.16.

     SECTION 11.4 Withdrawal of Trust Monies for Investment in Replacement Assets.

     In the event the Issuer intends to reinvest Net Cash Proceeds of an Asset Sale in assets in
compliance with Section 4.10 (“Replacement Assets”) (the “Released Trust Monies”), such Net Cash
Proceeds constituting Trust Monies may be withdrawn by the Issuer and shall be paid by the
Collateral Agent to the Issuer upon a written notice to the Trustee and upon receipt by the Trustee
and the Collateral Agent of the following:

     (a) A Notice signed by the Issuer which shall (i) refer to this Section 11.4, (ii)
contain all documents referred to below, (iii) describe with particularity the Released
Trust Monies, (iv) describe with particularity the Replacement Assets to be invested in with
respect to the Released Trust Monies and (v) be accompanied by a counterpart of the
instruments proposed to give effect to the release fully executed and acknowledged (if
applicable) by all parties thereto other than the Collateral Agent;

     (b) An Officers’ Certificate certifying that (i) such Trust Monies constitute Net Cash
Proceeds and are being reinvested in compliance with Section 4.10, (ii) the release of the
Released Trust Monies complies with the terms and conditions of this Indenture, (iii) there
is no Default or Event of Default (both before and after investing in the Replacement
Assets) in effect or continuing on the date thereof, (iv) the release of the Released Trust
Monies shall not result in a Default or Event of Default hereunder and (v) all conditions
precedent herein to such release have been complied with;

-82-

 

     (c) An Opinion of Counsel stating:

     (i) that the documents that have been or are therewith delivered to the Trustee
in connection with an investment in Replacement Assets comply as to form to the
requirements of this Indenture and, assuming the correctness and accuracy of such
documents, that all conditions precedent herein provided for relating to such
application of Trust Monies have been complied with; and

     (ii) to the extent that such Replacement Assets were acquired with Net Cash
Proceeds, the relevant Security Documents (including upon the section, filing and/or
delivery, as applicable, of any documents contemplated by the Security Documents)
create a valid, binding and enforceable Lien on and security interest in such
Replacement Assets in favor of the Collateral Agent for the benefit of the Holders.

     Upon compliance with the foregoing provisions, the Trustee shall apply the Released Trust
Monies as directed and specified by the Issuer.

     SECTION 11.5 Investment of Trust Monies.

     So long as no Default or Event of Default shall have occurred and be continuing, all or any
part of any Trust Monies held by (or held in account subject to the sole control of) the Collateral
Agent shall from time to time be invested or reinvested by the Collateral Agent in any Eligible
Cash Equivalents pursuant to a written request by the Issuer in the form of an Officers’
Certificate, which shall specify the Eligible Cash Equivalents in which such Trust Monies shall be
invested and shall certify that such investments constitute Eligible Cash Equivalents; and the
Collateral Agent shall sell any such Eligible Cash Equivalent only upon receipt of such a written
request by the Issuer specifying the particular Eligible Cash Equivalent to be sold. So long as no
Default or Event of Default occurs and is continuing, any interest or dividends accrued, earned or
paid on such Eligible Cash Equivalents (in excess of any accrued interest or dividends paid at the
time of purchase) that may be received by the Collateral Agent shall be forthwith paid to the
Issuer. Such Eligible Cash Equivalents shall be held by the Collateral Agent as a part of the
Collateral, subject to the same provisions hereof as the cash used by it to purchase such Eligible
Cash Equivalents.

     The Trustee and Collateral Agent shall not be liable or responsible for any loss resulting
from such investments or sales except only for its own negligent action, its own negligent failure
to act or its own willful misconduct in complying with this Section 11.5.

     SECTION 11.6 Use of Trust Monies; Retirement of Notes.

     The Collateral Agent shall apply Trust Monies not required to be applied to fund an Asset Sale
Offer or Event of Loss Offer or required to be held pending application to the acquisition of
Replacement Assets from time to time to the payment of the principal of, premium, and interest on,
any Notes and any Permitted Additional Pari Passu Obligations on a pro rata basis, on any
redemption date or the Maturity Date or to the redemption thereof or the purchase thereof upon
tender or in the open market or at private sale or upon any exchange or in any one or more of such
ways, including, without limitation, pursuant to a Change of Control Offer, as the Issuer shall
request in writing, upon receipt by the Trustee and the Collateral Agent of the following:

     (a) Board Resolutions of the Issuer directing the application pursuant to this Section
11.6 of a specified amount of Trust Monies and, in case any such monies are to be applied to
payment, designating the Notes and Permitted Additional Pari Passu Obligations so to be paid
and, in case any such monies are to be applied to the purchase of Notes and Permitted
Additional Pari Passu Obligations, prescribing the method of purchase, the price or prices
to be paid and the maximum aggregate principal amount of Notes and Permitted Additional Pari
Passu Obligations to be purchased and any other provisions of this Indenture governing such
purchase;

     (b) an Officers’ Certificate, dated not more than three days prior to the date of the
relevant application, stating

-83-

 

     (i) that no Default or Event of Default exists unless such Default or Event of
Default would be cured thereby; and

     (ii) that all conditions precedent and covenants herein provided for relating
to such application of Trust Monies have been complied with; and

     (c) an Opinion of Counsel stating that the documents and the cash or Eligible Cash
Equivalents, if any, which have been or are therewith delivered to and deposited with the
Collateral Agent conform to the requirements of this Indenture and all conditions precedent
herein provided for relating to such application of Trust Monies have been complied with.

     Upon compliance with the foregoing provisions of this Section, the Collateral Agent shall
apply Trust Monies as directed and specified by such Board Resolution.

     A Board Resolution expressed to be irrevocable directing the application of Trust Monies under
this Section 11.6 to the payment of the principal of, premium and interest on the Notes and any
Permitted Additional Pari Passu Obligations shall for all purposes of this Indenture be deemed the
equivalent of the deposit of money with the Collateral Agent in trust for such purpose. Such Trust
Monies and any cash deposited with the Collateral Agent pursuant to this Section 11.6 for the
payment of accrued interest shall not, after compliance with the foregoing provisions of this
Section, be deemed to be part of the Collateral or Trust Monies.

     SECTION 11.7 Disposition of Notes Retired.

     All Notes received by the Trustee and for whose purchase Trust Monies are applied under
Section 11.6, if not otherwise cancelled, shall be promptly delivered to the Trustee for
cancellation and destruction in accordance with the Trustee’s customary procedures.

ARTICLE XII

NOTE GUARANTEES

     SECTION 12.1 Note Guarantees.

     (a) Each Guarantor hereby jointly and severally, unconditionally and irrevocably guarantees
the Notes and obligations of the Issuer hereunder and thereunder, and guarantees to each Holder of
a Note authenticated and delivered by the Trustee and to the Trustee on behalf of such Holder,
that: (i) the principal of and premium, if any and interest on the Notes shall be paid in full
when due, whether at Stated Maturity, by acceleration, call for redemption or otherwise (including,
without limitation, the amount that would become due but for the operation of the automatic stay
under Section 362(a) of the Bankruptcy Code), together with interest on the overdue principal, if
any, and interest on any overdue interest, to the extent lawful, and all other obligations of the
Issuer to the Holders or the Trustee hereunder or thereunder shall be paid in full or performed,
all in accordance with the terms hereof and thereof; and (ii) in case of any extension of time of
payment or renewal of any Notes or of any such other obligations, the same shall be paid in full
when due or performed in accordance with the terms of the extension or renewal, whether at Stated
Maturity, by acceleration or otherwise. Each of the Note Guarantees shall be a guarantee of
payment and not of collection.

     (b) Each Guarantor hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Guarantor.

     (c) Each Guarantor hereby waives the benefits of diligence, presentment, demand for payment,
filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company or any other Person, protest, notice and all demands
whatsoever and covenants that the

-84-

 

Note Guarantee of such Guarantor shall not be discharged as to any Note except by complete
performance of the obligations contained in such Note and such Note Guarantee or as provided for in
this Indenture. Each of the Guarantors hereby agrees that, in the event of a default in payment of
principal or premium, if any, or interest on such Note, whether at its Stated Maturity, by
acceleration, call for redemption, purchase or otherwise, legal proceedings may be instituted by
the Trustee on behalf of, or by, the Holder of such Note, subject to the terms and conditions set
forth in this Indenture, directly against each of the Guarantors to enforce such Guarantor’s Note
Guarantee without first proceeding against the Company or any other Guarantor.

     (d) If any Holder or the Trustee is required by any court or otherwise to return to the Issuer
or any Guarantor, or any custodian, trustee, liquidator or other similar official acting in
relation to the Issuer or any Guarantor, any amount paid by any of them to the Trustee or such
Holder, the Note Guarantee of each of the Guarantors, to the extent theretofore discharged, shall
be reinstated in full force and effect. This paragraph (d) shall remain effective notwithstanding
any contrary action which may be taken by the Trustee or any Holder in reliance upon such amount
required to be returned. This paragraph (d) shall survive the termination of this Indenture.

     (e) Each Guarantor further agrees that, as between each Guarantor, on the one hand, and the
Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby
may be accelerated as provided in Article VI hereof for the purposes of the Note Guarantee
of such Guarantor, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any
acceleration of such obligations as provided in Article VI hereof, such obligations
(whether or not due and payable) shall forthwith become due and payable by each Guarantor for the
purpose of the Note Guarantee of such Guarantor.

     SECTION 12.2 Execution and Delivery of Note Guarantee.

     To evidence its Note Guarantee set forth in Section 12.1, each Guarantor agrees that a
notation of such Note Guarantee substantially in the form attached hereto as Exhibit B
shall be endorsed on each Note authenticated and delivered by the Trustee. Such notation of Note
Guarantee shall be signed on behalf of such Guarantor by an officer of such Guarantor (or, if an
officer is not available, by a board member or director) on behalf of such Guarantor by manual or
facsimile signature. In case the officer, board member or director of such Guarantor who shall
have signed such notation of Note Guarantee shall cease to be such officer, board member or
director before the Note on which such Note Guarantee is endorsed shall have been authenticated and
delivered by the Trustee, such Note nevertheless may be authenticated and delivered as though the
Person who signed such notation of Note Guarantee had not ceased to be such officer, board member
or director.

     Each Guarantor agrees that its Note Guarantee set forth in Section 12.1 shall remain in full
force and effect and apply to all the Notes notwithstanding any failure to endorse on each Note a
notation of such Note Guarantee. The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of any Note Guarantee set forth in this Indenture
on behalf of the Guarantors.

     The failure to endorse a Note Guarantee shall not affect or impair the validity thereof.

     SECTION 12.3 Severability.

     In case any provision of any Note Guarantee shall be invalid, illegal or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     SECTION 12.4 Limitation of Subsidiary Guarantors’ Liability.

     Each Subsidiary Guarantor and by its acceptance hereof each Holder confirms that it is the
intention of all such parties that the Note Guarantee of such Subsidiary Guarantor not constitute a
fraudulent transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law or the
provisions of its local law relating to fraudulent transfer or conveyance. To effectuate the
foregoing intention, the Trustee, the Holders and Subsidiary Guarantors hereby irrevocably agree
that the obligations of such Subsidiary Guarantor under its Note Guarantee shall be limited to the
maximum amount

-85-

 

that will not, after giving effect to all other contingent and fixed liabilities of such
Subsidiary Guarantor and after giving effect to any collections from, rights to receive
contribution from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Note Guarantee, result in the obligations of such
Subsidiary Guarantor under its Note Guarantee constituting a fraudulent transfer or conveyance.

     SECTION 12.5 Guarantors May Consolidate, Etc., on Certain Terms.

     A Guarantor may not sell or otherwise dispose of all or substantially all of its assets, or
consolidate with or merge with or into (whether or not such Guarantor is the surviving Person)
another Person unless:

     (1) immediately after giving effect to such transactions, no Default or Event of
Default exists; and

     (2) either:

     (A) the Person acquiring the property in any such sale or disposition or the
Person formed by or surviving any such consolidation or merger assumes all the
obligations of that Guarantor under this Indenture pursuant to a supplemental
indenture reasonably satisfactory to the Trustee; or

     (B) the Net Cash Proceeds of any such sale or other disposition of a Guarantor
are applied in accordance with the provisions of Section 4.10 hereof; and

     (3) the Company delivers, or causes to be delivered, to the Trustee an Officers’
Certificate and an Opinion of Counsel (upon which the Trustee shall be entitled to
conclusively and exclusively rely), each stating that such sale, other disposition,
consolidation or merger complies with the requirements of this Indenture.

     In case of any such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Note Guarantee and the due and punctual performance of all of the
covenants and conditions of this Indenture to be performed by the Guarantor, such successor Person
shall succeed to and be substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. All the Note Guarantees so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Note Guarantees theretofore and thereafter issued in
accordance with the terms of this Indenture as though all such Note Guarantees had been issued at
the date of the execution hereof.

     Except as set forth in Articles IV and V hereof, and notwithstanding clauses
(1) and (2) above, nothing contained in this Indenture or in any of the Notes shall prevent any
consolidation or merger of a Guarantor with or into the Issuer or another Guarantor, or shall
prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Issuer or another Guarantor.

     SECTION 12.6 [Reserved].

     SECTION 12.7 Release of a Subsidiary Guarantor.

     The Note Guarantee of a Subsidiary Guarantor will be automatically and unconditionally
released:

     (a) in the event of a sale or other transfer of Capital Interests in such Subsidiary
Guarantor in compliance with Section 4.10 following which such Subsidiary Guarantor ceases
to be a Subsidiary;

     (b) upon the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
compliance with Section 4.21; or

-86-

 

     (c) in connection with a Discharge, legal defeasance or covenant defeasance in
compliance with Article VIII.

     Any Subsidiary Guarantor not so released shall remain liable for the full amount of principal
and interest on the Notes as provided in its Note Guarantee.

     SECTION 12.8 Benefits Acknowledged.

     Each Guarantor acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Indenture and that its guarantee and waivers pursuant
to its Note Guarantee are knowingly made in contemplation of such benefits.

     SECTION 12.9 Future Guarantors.

     Each Person that is required to become a Guarantor after the Issue Date pursuant to Section
4.20 shall promptly execute and deliver to the Trustee a supplemental indenture pursuant to which
such Person shall become a Guarantor. Concurrently with the execution and delivery of such
supplemental indenture, the Company shall deliver to the Trustee an Opinion of Counsel and an
Officers’ Certificate (upon which the Trustee shall be entitled to conclusively and exclusively
rely) to the effect that such supplemental indenture has been duly authorized, executed and
delivered by such Person and that, subject to the application of bankruptcy, insolvency,
moratorium, fraudulent conveyance or transfer and other similar laws relating to creditors’ rights
generally and to the principles of equity, whether considered in a proceeding at law or in equity,
the Guarantee of such Guarantor is a valid and binding obligation of such Guarantor, enforceable
against such Guarantor in accordance with its terms and/or to such other matters as the Trustee may
reasonably request.

ARTICLE XIII

MISCELLANEOUS

     SECTION 13.1 Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
TIA § 318(c), the imposed duties shall control.

     SECTION 13.2 Notices.

     Any notice or communication by the Issuer, any Guarantor or the Trustee to the others is duly
given if in writing and delivered in Person or mailed by first class mail (registered or certified,
return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to
the others address:

     If to the Issuer or any Guarantor:

American Commercial Lines, Inc.

1701 East Market Street

Jeffersonville, Indiana 47130

Facsimile: (812) 288-0294

Attention: General Counsel

     With a copy to:

Hogan & Hartson LLP

875 Third Avenue

New York, NY 10002

Facsimile: (212) 918-3100

Attention: Amy Freed

-87-

 

     If to the Trustee:

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attn: Corporate Trust

Telecopy No.: (312) 827-8542

     The Issuer, the Guarantors and the Trustee, by notice to the others, may designate additional
or different addresses for subsequent notices or communications.

     Any notice or communication to a Holder shall be mailed by first class mail or by overnight
air courier promising next Business Day delivery to its address shown on the register kept by the
Registrar. Any notice or communication shall also be so mailed to any Person described in TIA §
313(c), to the extent required by the TIA. Failure to mail a notice or communication to a Holder
or any defect in it shall not affect its sufficiency with respect to other Holders.

     If a notice or communication is mailed or delivered in the manner provided above within the
time prescribed, it is duly given, whether or not the addressee receives it, except in the case of
notices or communications given to the Trustee, which shall be effective only upon actual receipt.

     If the Issuer mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

     SECTION 13.3 Communication by Holders of Notes with Other Holders of Notes.

     Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture, the Security Documents or the Notes. The Issuer, each Guarantor, the
Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

     SECTION 13.4 Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Issuer to the Trustee to take any action under this
Indenture, the Issuer shall furnish to the Trustee upon request:

     (a) an Officers’ Certificate (which shall include the statements set forth in Section
13.5 hereof) stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been satisfied; and

     (b) an Opinion of Counsel (which shall include the statements set forth in Section 13.5
hereof) stating that, in the opinion of such counsel, all such conditions precedent have
been satisfied.

     SECTION 13.5 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply
with the provisions of TIA § 314(e) and shall include:

     (a) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (b) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

-88-

 

     (c) a statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been satisfied; and

     (d) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

     SECTION 13.6 Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

	 	 	SECTION 13.7 No Personal Liability of Directors, Officers, Employees and Stockholders.

     No director, officer, employee, stockholder, general or limited partner or incorporator, past,
present or future, of the Company, American Commercial Lines or any of their Subsidiaries, as such
or in such capacity, shall have any personal liability for any obligations of the Issuer under the
Notes, any Note Guarantee, the Security Documents or this Indenture by reason of his, her or its
status as such director, officer, employee, stockholder, general or limited partner or
incorporator.

     SECTION 13.8 Governing Law.

     THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE
NOTES AND THE NOTE GUARANTEES, IF ANY. The parties to this Indenture each hereby irrevocably
submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the
Borough of Manhattan in The City of New York in any action or proceeding arising out of or relating
to the Notes, the Note Guarantees or this Indenture, and all such parties hereby irrevocably agree
that all claims in respect of such action or proceeding may be heard and determined in such New
York State or federal court and hereby irrevocably waive, to the fullest extent that they may
legally do so, the defense of an inconvenient forum to the maintenance of such action or
proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES, THE NOTE GUARANTEES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 13.9 No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or debt agreement of
American Commercial Lines, the Issuer or their Subsidiaries or of any other Person. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

     SECTION 13.10 Successors.

     All agreements of the Issuer and the Guarantors in this Indenture and the Notes and the Note
Guarantees, as applicable, shall bind their respective successors and assigns. All agreements of
the Trustee in this Indenture shall bind its successors and assigns.

     SECTION 13.11 Severability.

     In case any provision in this Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

-89-

 

     SECTION 13.12 Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

     SECTION 13.13 Table of Contents, Headings,
Etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

     SECTION 13.14 Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Issuer. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and the Issuer, if made in the manner provided in this Section 13.14.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to such officer the execution thereof. Where such
execution is by a signer acting in a capacity other than such signer’s individual capacity, such
certificate or affidavit shall also constitute sufficient proof of such signer’s authority. The
fact and date of the execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee deems sufficient.

     (c) The ownership of Notes shall be proved by the Holder list maintained under Section 2.5
hereunder.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Note shall bind every future Holder of the same Note and the holder of every Note
issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Trustee or the Issuer in reliance
thereon, whether or not notation of such action is made upon such Note.

     (e) If the Issuer shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Issuer may, at its option, by or pursuant to a
Board Resolution, fix in advance a record date for the determination of Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other Act, but the
Issuer shall have no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other Act may be given before or after such
record date, but only the Holders of record at the close of business on such record date shall be
deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of
outstanding Notes have authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for that purpose the outstanding Notes shall
be computed as of such record date; provided that no such authorization, agreement or consent by
the Holders on such record date shall be deemed effective unless it shall become effective pursuant
to the provisions of this Indenture not later than six months after the record date.

-90-

 

     SECTION 13.15 Intercreditor Agreement.

     The Security Documents, the Notes, this Indenture, the Trustee, the Collateral Agent and the
Holders are bound by the terms of the Intercreditor Agreement.

[Signatures on following page]

-91-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	COMMERCIAL BARGE LINE COMPANY

 	 
	 	By:  	/s/ Dawn R. Landry
 	 
	 	 	Name:  	Dawn R. Landry 	 
	 	 	Title:  	Vice President and Secretary 	 
	 
	 	AMERICAN COMMERCIAL LINES INC.

 	 
	 	By:  	/s/ Dawn R. Landry
 	 
	 	 	Name:  	Dawn R. Landry 	 
	 	 	Title:  	Senior Vice President, General Counsel
and Corporate Secretary 	 
	 
	 	AMERICAN COMMERCIAL LINES LLC

 	 
	 	By:  	/s/ Dawn R. Landry
 	 
	 	 	Name:  	Dawn R. Landry 	 
	 	 	Title:  	Vice President and Secretary 	 
	 
	 	ACL TRANSPORTATION SERVICES LLC

 	 
	 	By:  	/s/ Dawn R. Landry
 	 
	 	 	Name:  	Dawn R. Landry 	 
	 	 	Title:  	Vice President and Secretary 	 
	 
	 	JEFFBOAT LLC

 	 
	 	By:  	/s/ Dawn R. Landry
 	 
	 	 	Name:  	Dawn R. Landry 	 
	 	 	Title:  	Vice President and Secretary 	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee

 	 
	 	By:  	                    /s/ D.G. Donovan
 	 
	 	 	Name:  	D.G. Donovan 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Indenture]

 

 

EXHIBIT A

FORM OF 121/2% SENIOR SECURED NOTE

(Face of 121/2% Senior Secured Note)

121/2% Senior Secured Notes due 2017

[Global Notes Legend]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OR TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE.

[Restricted Notes Legend]

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY
EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION
FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF
THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY (i)(a) TO A PERSON WHO IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (b) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES
ACT, (c) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT, OR (d) IN ACCORDANCE WITH ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON
AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), (ii) TO THE COMPANY, OR (iii)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTION, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE
RESALE

Exhibit A-1

 

 RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE
AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY
EVIDENCED HEREBY.

[OID Legend]

THIS NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET
SEQ. OF THE INTERNAL REVENUE CODE. A HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF
ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTES BY
SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE ISSUER AT THE FOLLOWING
ADDRESS: AMERICAN COMMERCIAL LINES INC., 1701 EAST MARKET STREET, JEFFERSONVILLE,
INDIANA 47310 ATTENTION: CHIEF FINANCIAL OFFICER.

Exhibit A-2

 

COMMERCIAL BARGE LINE COMPANY

121/2% SENIOR SECURED NOTE DUE 2017

	 	 	 
	No. ____________

	 	INITIAL NOTES CUSIP:
	 

	 	[20162U AA3] [U20053 AA9]
	 

	 	INITIAL NOTES ISIN:
	 

	 	[US20162UAA34] [USU20053AA96]

     Commercial Barge Line Company promises to pay to Cede & Co. or registered assigns, the
principal sum of [                              ]
($[               ]) on July 15, 2017.

     Interest Payment Dates: January 15 and July 15, beginning January 15, 2010

     Record Dates: January 1 and July 1

     Reference is made to further provisions of this Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Note shall not be entitled to any benefits under
the Indenture referred to on the reverse hereof or be valid or obligatory for any purpose.

Exhibit A-3

 

	 	 	 	 	 
	 	COMMERCIAL BARGE LINE COMPANY

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the 121/2 % Senior Secured Notes

referred to in the within-mentioned Indenture:

Dated: July 7, 2009

THE BANK OF NEW YORK MELLON TRUST
 COMPANY,
N.A., not in its individual capacity,

but solely as Trustee

	 	 	 	 	 
	 	 	 
	By:  	
 	 	 
	 	Authorized Signatory 	 	 
	 

Exhibit A-4

 

(Reverse of 121/2 % Senior Secured Note)

121/2% Senior Secured Notes due 2017

COMMERCIAL BARGE LINE COMPANY

     Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     (1) Interest.

     (a) Commercial Barge Line Company, a Delaware corporation (the “Company”), promises to pay
interest on the principal amount of this Note (the “Notes”) at the rate of 121/2% per annum. The
Company will pay interest in United States dollars (except as otherwise provided herein)
semiannually in arrears on January 15 and July 15, commencing on January 15, 2010 or if any such
day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”).
Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if
no interest has been paid, from and including July 7, 2009; provided that if there is no existing
Default or Event of Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest Payment Date (but after
July 7, 2009), interest shall accrue from such next succeeding Interest Payment Date, except in the
case of the original issuance of Notes, in which case interest shall accrue from the date of
authentication. It shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Code) on overdue installments of interest (without regard to any applicable grace
period) at the same rate to the extent lawful. Interest shall be computed on the basis of a
360-day year comprised of twelve 30-day months. The interest rate on the Notes will in no event be
higher than the maximum rate permitted by New York law as the same may be modified by United States
law of general application.

     [(b) Registration Rights Agreement. The Holder of this Note is entitled to the
benefits of a Registration Rights Agreement dated as of July 7, 2009 among the Issuer, the
Guarantors party thereto and the Initial Purchasers.]1

     (2) Method of Payment. The Company will pay interest on the Notes (except defaulted
interest) on the applicable Interest Payment Date to the Persons who are registered Holders of
Notes at the close of business on the January 1 and July 1 preceding the Interest Payment Date,
even if such Notes are cancelled after such record date and on or before such Interest Payment
Date, except as provided in Section 2.12 of the Indenture with respect to defaulted interest. The
Notes shall be payable as to principal, premium and interest at the office or agency of the Company
maintained for such purpose within or without the City and State of New York, or, at the option of
the Company, payment of interest may be made by check mailed to the Holders at their addresses set
forth in the register of Holders; provided that payment by wire transfer of immediately available
funds shall be required with respect to principal of, premium, if any, and interest on, all Global
Notes and all other Notes the Holders of which shall have provided written wire transfer
instructions to the Company and the Paying Agent. Such payment shall be in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and
private debts.

     Any payments of principal of and interest on this Note prior to Stated Maturity shall be
binding upon all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. The amount
due and payable at the maturity of this Note shall be payable only upon presentation and surrender
of this Note at an office of the Trustee or the Trustee’s agent appointed for such purposes.

 

			
	1	 	To be included only in the Initial Notes on the Issue
Date and any Additional Notes that bear the Restricted Legend.

Exhibit A-5

 

     (3) Paying Agent and Registrar. Initially, The Bank of New York Mellon Trust Company,
N.A., the Trustee under the Indenture, shall act as Paying Agent and Registrar. The Company may
change any Paying Agent or Registrar without notice to any Holder. American Commercial Lines Inc.
or any of its respective Restricted Subsidiaries may act in any such capacity.

     (4) Indenture. The Company issued the Notes under an Indenture, dated as of July 7,
2009 (the “Indenture”), among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture. To the extent the provisions of this Note are inconsistent
with the provisions of the Indenture, the Indenture shall govern. The Notes are subject to all
such terms, and Holders are referred to the Indenture for a statement of such terms. The Notes
issued on the Issue Date are senior secured Obligations of the Company limited to $200,000,000 in
aggregate principal amount, plus amounts, if any, sufficient to pay premium and interest on
outstanding Notes as set forth in Paragraph 2 hereof. The Indenture permits the issuance of
Additional Notes subject to compliance with certain conditions.

     The payment of principal and interest on the Notes is unconditionally guaranteed on a senior
basis by the Guarantors.

     (5) Optional Redemption.

     (a) The Notes may be redeemed, in whole or in part, at any time prior to July 15, 2013, at the
option of the Company upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each Holder’s registered address, at a Redemption Price equal to 100% of the
principal amount of the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid
interest, if any, to, but not including, the applicable redemption date (subject to the right of
holders of record on the relevant record date to receive interest due on the relevant interest
payment date).

     (b) The Notes are subject to redemption, at the option of the Company, in whole or in part, at
any time on or after July 15, 2013 upon not less than 30 nor more than 60 days’ notice mailed by
first-class mail to each Holder’s registered address at the following Redemption Prices (expressed
as percentages of the principal amount to be redeemed) set forth below, plus accrued and unpaid
interest, if any, to, but not including, the redemption date (subject to the right of Holders of
record on the relevant regular record date to receive interest due on an interest payment date), if
redeemed during the 12-month period beginning July 15 of the years indicated:

	 	 	 	 	 
	Year	 	Percentage
	2013
	 	 	106.250	%
	2014
	 	 	103.125	%
	2015 and thereafter
	 	 	100	%

     (c) At any time, or from time to time, prior to July 15, 2012, the Company may, with the net
proceeds of one or more Qualified Equity Offerings, redeem up to 35% of the aggregate principal
amount of the outstanding Notes (including Additional Notes) at a Redemption Price equal to112.50%
of the principal amount of thereof, together with accrued and unpaid interest thereon, if any, to
the date of redemption; provided that at least 65% of the principal amount of the Notes then
outstanding (including Additional Notes) remains outstanding immediately after the occurrence of
any such redemption (excluding Notes held by American Commercial Lines or its Subsidiaries) and
that any such notice of redemption occurs within 90 days following the closing of any such
Qualified Equity Offering.

     (6) Mandatory Redemption. Except as set forth under Sections 4.10, 4.14 and 4.16 of
the Indenture, the Company shall not be required to make mandatory redemption or sinking fund
payments with respect to the Notes.

     (7) Repurchase at Option of Holder.

     (a) Upon the occurrence of certain events, the Company may be required to commence an Offer to
Purchase pursuant to an Asset Sale Offer, Event of Loss Offer or a Change of Control Offer.

Exhibit A-6

 

     (c) Holders of the Notes that are the subject of an Offer to Purchase will receive notice of
an Offer to Purchase pursuant to an Asset Sale Offer, Event of Loss Offer or a Change of Control
Offer from the Company prior to any related Purchase Date and may elect to have such Notes
purchased by completing the form titled “Option of Holder to Elect Purchase” appearing below.

     (8) Notice of Redemption. Notice of redemption shall be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at
its registered address. Notes in denominations larger than $2,000 may be redeemed in part but only
in a minimum amount of $2,000 principal amount (and integral multiples of $1,000 in excess
thereof), unless all of the Notes held by a Holder are to be redeemed. On and after the redemption
date, interest ceases to accrue on the Notes or portions hereof called for redemption.

     (9) Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in initial denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
The transfer of the Notes may be registered. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents and the Company may
require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The
Company need not exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, it need
not exchange or register the transfer of any Notes for a period of 15 days before a selection of
Notes to be redeemed or during the period between a record date and the corresponding Interest
Payment Date.

     (10) Persons Deemed Owners. The registered holder of a Note may be treated as its
owner for all purposes.

     (11) Amendment, Supplement and Waiver. Subject to the following paragraphs, the
Indenture and the Notes may be amended or supplemented with the consent of the Holders of at least
a majority in aggregate principal amount of the then outstanding Notes, including, without
limitation, consents obtained in connection with a purchase of or tender offer or exchange offer
for Notes, and any existing Default or Event of Default or compliance with any provision of the
Indenture or the Notes may be waived with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes, including waivers obtained in connection with a
tender offer or exchange offer for the Notes.

     Without the consent of any Holders, the Company, the Guarantors and the Trustee, at any time
and from time to time, may enter into one or more indentures supplemental to the Indenture, the
Guarantees and the Security Documents for any of the following purposes:

     (1) to evidence the succession of another Person to the Company or any Guarantor and
the assumption by any such successor of the covenants of the Company or such Guarantor in
the Indenture, the Guarantees, the Security Documents and in the Notes;

     (2) to add to the covenants of the Company or the Guarantors for the benefit of the
Holders, or to surrender any right or power herein conferred upon the Company or the
Guarantors;

     (3) to add additional Events of Default;

     (4) to provide for uncertificated Notes in addition to or in place of the certificated
Notes;

     (5) to evidence and provide for the acceptance of appointment under the Indenture and
the Security Documents by a successor Trustee or Collateral Agent;

     (6) to provide for or confirm the issuance of Additional Notes in accordance with the
terms of the Indenture;

     (7) to add to the Collateral securing the Notes, to add a Guarantor or to release a
Guarantor in accordance with the Indenture;

Exhibit A-7

 

     (8) to cure any ambiguity, defect, omission, mistake or inconsistency;

     (9) to make any other provisions with respect to matters or questions arising under the
Indenture, provided that such actions pursuant to this clause shall not adversely affect the
interests of the Holders in any material respect, as determined in good faith by the Board
of Directors of the American Commercial Lines;

     (10) to conform the text of the Indenture, the Security Documents or the Notes to any
provision of the “Description of the Notes” in the Offering Memorandum to the extent that
the Trustee has received an Officers’ Certificate stating that such text constitutes an
unintended conflict with the description of the corresponding provision in the “Description
of the Notes”;

     (11) to mortgage, pledge, hypothecate or grant any other Lien in favor of the
Collateral Agent for the benefit of the Trustee on behalf of the Holders of the Notes, as
additional security for the payment and performance of all or any portion of the Note
Obligations under the Indenture and the Notes, in any property or assets, including any
which are required to be mortgaged, pledged or hypothecated, or in which a Lien is required
to be granted to or for the benefit of the Trustee or the Collateral Agent pursuant to the
Indenture, any of the Security Documents or otherwise;

     (12) to release Collateral from the Lien of the Indenture and the Security Documents
when permitted or required by the Security Documents, the Intercreditor Agreement or the
Indenture; or

     (13) to secure any Permitted Additional Pari Passu Obligations under the Security
Documents and to appropriately include the same in the Intercreditor Agreement.

     Subject to the preceding paragraph, with the consent of the Holders of not less than a
majority in aggregate principal amount of the outstanding Notes, the Company, the Guarantors and
the Trustee may enter into an indenture or indentures supplemental to the Indenture or amend the
Security Documents and the Intercreditor Agreement (together with the other consents required
thereby) for the purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of the Indenture or the Notes or of modifying in any manner the rights of the
Holders under the Indenture, including the definitions therein; provided, however, that no such
supplemental indenture or amendment shall, without the consent of the Holder of each outstanding
Note affected thereby:

     (1) change the Stated Maturity of any Note or of any installment of interest on any
Note, or reduce the amount payable in respect of the principal thereof or the rate of
interest thereon or any premium payable thereon, or reduce the amount that would be due and
payable on acceleration of the maturity thereof, or change the place of payment where, or
the coin or currency in which, any Note or any premium or interest thereon is payable, or
impair the right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof, or change the date on which any Notes may be subject to redemption
or reduce the Redemption Price therefor,

     (2) reduce the percentage in aggregate principal amount of the outstanding Notes, the
consent of whose Holders is required for any such supplemental indenture or amendment, or
the consent of whose Holders is required for any waiver (of compliance with certain
provisions of the Indenture or certain defaults thereunder and their consequences) provided
for in the Indenture,

     (3) modify the obligations of the Company to make Offers to Purchase upon a Change of
Control or from the Excess Proceeds of Asset Sales or Excess Loss Proceeds from an Event of
Loss if such modification was done after the occurrence of such Change of Control, Asset
Sale or Event of Loss, as applicable,

     (4) subordinate, in right of payment, the Notes to any other Debt of the Company,

     (5) modify any of the provisions of this paragraph or provisions relating to waiver of
defaults or certain covenants, except to increase any such percentage required for such
actions or to provide that

Exhibit A-8

 

certain other provisions of the Indenture cannot be modified or waived without the
consent of the Holder of each outstanding Note affected thereby, or

     (6) release any Guarantees required to be maintained under the Indenture (other than in
accordance with the terms of the Indenture).

     In addition, any amendment to, or waiver of, the provisions of the Indenture or any Security
Document that has the effect of releasing all or substantially all of the Collateral from the Liens
securing the Notes or otherwise modifying the Intercreditor Agreement in any manner adverse in any
material respect to the Holders of the Notes will require the consent of the Holders of at least 66
2/3% in aggregate principal amount of the Notes then outstanding.

     The Holders of not less than a majority in aggregate principal amount of the outstanding Notes
may on behalf of the Holders of all the Notes waive any past default under the Indenture and its
consequences, except a default:

     (1) in any payment in respect of the principal of (or premium, if any) or interest on
any Notes (including any Note which is required to have been purchased pursuant to an Offer
to Purchase which has been made by the Issuer), or

     (2) in respect of a covenant or provision of the Indenture which under the Indenture
cannot be modified or amended without the consent of the Holder of each outstanding Note
affected.

     (12) Defaults and Remedies. Events of Default include:

     (1) default in the payment in respect of the principal of (or premium, if any, on) any
Note at its maturity (whether at Stated Maturity or upon repurchase, acceleration, optional
redemption or otherwise);

     (2) default in the payment of any interest upon any Note when it becomes due and
payable, and continuance of such default for a period of 30 days;

     (3) failure to perform or comply with the provisions described under Section 5.1 of the
Indenture;

     (4) except as permitted by the Indenture, any Note Guarantee of any Significant
Subsidiary (or any group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary) shall for any reason cease to be, or it shall be asserted by any
Guarantor or the Company not to be, in full force and effect and enforceable in accordance
with its terms (except as specifically provided in the Indenture);

     (5) default in the performance, or breach, of (i) any covenant or agreement of the
Company or any Guarantor in the Indenture (other than a (x) covenant or agreement a default
in whose performance or whose breach is specifically dealt with in clauses (1), (2) (3) or
(4) above or (y) a covenant or agreement contained in Section 4.3 of the Indenture), and
continuance of such default or breach for a period of 60 days after written notice thereof
has been given to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in aggregate principal amount of the outstanding Notes or (ii) any
covenant or agreement contained in Section 4.3 of the Indenture and continuance of such
default or breach for a period of 120 days after written notice thereof has been given to
the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25%
in aggregate principal amount of the outstanding Notes;

     (6) a default or defaults under any bonds, debentures, notes or other evidences of Debt
(other than the Notes) by American Commercial Lines or any Restricted Subsidiary of American
Commercial Lines (including the Company) having, individually or in the aggregate, a
principal or similar amount out-

Exhibit A-9

 

standing of at least $35.0 million, whether such Debt now exists or shall hereafter be
created, which default or defaults shall have resulted in the acceleration of the maturity
of such Debt prior to its express maturity or shall constitute a failure to pay at least
$35.0 million of such Debt when due and payable after the expiration of any applicable grace
period with respect thereto;

     (7) the entry against American Commercial Lines or any Restricted Subsidiary of
American Commercial Lines that is a Significant Subsidiary (or any group of Restricted
Subsidiaries that, taken together, would constitute a Significant Subsidiary) of a final
nonappealable judgment or final nonappealable judgments for the payment of money in an
aggregate amount in excess of $35.0 million (other than any judgments covered by indemnities
or insurance policies as to which liability coverage has not been denied by the insurance
company or indemnifying party), by a court or courts of competent jurisdiction, which
judgments remain undischarged, unwaived, unstayed, unbonded or unsatisfied for a period of 90
consecutive days;

     (8) (i) American Commercial Lines, any Significant Subsidiary or any group of
Restricted Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary,
pursuant to or within the meaning of any Bankruptcy Code:

     (a) commences a voluntary case,

     (b) consents to the entry of an order for relief against it in an involuntary
case,

     (c) consents to the appointment of a Custodian of it or for all or
substantially all of its property,

     (d) makes a general assignment for the benefit of its creditors, or

     (e) admits, in writing, its inability generally to pay its debts as they become
due; or (ii) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Code that:

     (a) is for relief against American Commercial Lines, any Significant
Subsidiary or any group of Restricted Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary, in an involuntary case;

     (b) appoints a Custodian of American Commercial Lines, any Significant
Subsidiary or any group of Restricted Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary or for all or substantially all of
the property of American Commercial Lines or any of its Restricted
Subsidiaries (including the Company);

     (c) orders the liquidation of American Commercial Lines, the Company or
any Restricted Subsidiary that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary;

  and the order or decree remains unstayed and in effect for 60 consecutive days; or

     (9) unless all of the Collateral has been released from the Note Liens in accordance
with the provisions of the Security Documents, default by American Commercial Lines or any
of its Restricted Subsidiaries or Guarantors in the performance of the Security Documents
which adversely affects in any material respect the enforceability, validity, perfection or
priority of the Note Liens on a material portion of the Collateral, the repudiation or
disaffirmation by American Commercial Lines or any of its Restricted Subsidiaries or
Guarantors of its material obligations under the Security Documents or the determination in
a judicial proceeding that the Security Documents are unenforceable or invalid against
American Commercial Lines or any of its Restricted Subsidiaries or Guarantors party thereto
for any reason with respect to a material portion of the Collateral (which default,
repudiation, disaffirmation or determination is not rescinded, stayed, or waived by the
Persons having such authority pursuant to the Security Documents) or oth-

Exhibit A-10

 

erwise cured within 60 days after the Company receives written notice thereof
specifying such occurrence from the Trustee or the Holders of at least 66 2/3% of the
outstanding principal amount of the Note Obligations and demanding that such default be
remedied.

     If an Event of Default (other than an Event of Default specified in clause (8) above with
respect to the Company) occurs and is continuing, then and in every such case the Trustee or the
Holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the
principal of the Notes and any accrued interest on the Notes to be due and payable immediately by a
notice in writing to the Company (and to the Trustee if given by Holders).

     In the event of a declaration of acceleration of the Notes solely because an Event of Default
described in clause (6) above has occurred and is continuing, the declaration of acceleration of
the Notes shall be automatically rescinded and annulled if the event of default or payment default
triggering such Event of Default pursuant to clause (6) shall be remedied or cured by American
Commercial Lines or a Restricted Subsidiary of American Commercial Lines or waived by the holders
of the relevant Debt within 20 Business Days after the declaration of acceleration with respect
thereto and if the rescission and annulment of the acceleration of the Notes would not conflict
with any judgment or decree of a court of competent jurisdiction obtained by the Trustee for the
payment of amounts due on the Notes.

     If an Event of Default specified in clause (8) above occurs with respect to the Company, the
principal of and any accrued interest on the Notes then outstanding shall ipso facto become
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder.

     (13) Trustee Dealings with the Company. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Company, the
Guarantors or their respective Affiliates, and may otherwise deal with the Company, the Guarantors
or their respective Affiliates, as if it were not the Trustee.

     (14) No Recourse Against Others. No director, officer, employee, stockholder, general
or limited partner or incorporator, past, present or future, of the Company, the Guarantors or any
of their respective Subsidiaries, as such or in such capacity, shall have any personal liability
for any obligations of the Company under the Notes, any Guarantee, the Indenture or the Security
Documents by reason of his, her or its status as such director, officer, employee, stockholder,
general or limited partner or incorporator.

     (15) Authentication. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (17) CUSIP, ISIN Numbers. Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed
on the Notes and the Trustee may use CUSIP, ISIN or other similar numbers in notices of redemption
as a convenience to the Holders. No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

Exhibit A-11

 

     The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

American Commercial Lines Inc.

1701 East Market Street

Jeffersonville, Indiana 47130

Facsimile: (812) 288-0294

Attention: General Counsel

Exhibit A-12

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to

	 	 	 
	 
	(Insert assignee’s soc. sec. or tax I.D. no.)

	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint 

to transfer this Note on the books of the Company. The agent may substitute another to act for him.

Date: ___________

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	

 	 
	 	 	(Sign exactly as your name appears on 	 
	 	 	the face of this Note) 	 
	 

	 	 	 	 	 
	 	 	 
	 	Signature guarantee:  	 	 
	 	 	(Signature must be guaranteed by a participant in a recognized signature 	 
	 	 	guarantee medallion program) 	 

Exhibit A-13

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Sections 4.10
(Asset Sale), 4.14 (Change of Control) or 4.16 (Event of Loss) of the Indenture, check the box
below:

[  ] Section 4.10       [  ] Section 4.14      [  ] Section 4.16

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 4.10, 4.14 or 4.16 of the Indenture, state the amount you elect to have purchased: $

	 	 	 	 	 
	Date: _____________	Your Signature:  	 	 
	 	 	(Sign exactly as your name appears on the Note)  	 
	 
	     Tax Identification No.: 	 	 

	 	 	 	 
	     Signature guarantee:  	 
	 	 	
(Signature must be guaranteed by a participant in a recognized signature
guarantee medallion program)
  
	 

Exhibit A-14

 

CERTIFICATE TO BE DELIVERED UPON

EXCHANGE OR REGISTRATION

OF TRANSFER RESTRICTED NOTES

American Commercial Lines Inc.

1701 East Market Street

Jeffersonville, Indiana 47130

Facsimile: (812) 288-0294

Attention: General Counsel

The Bank of New York Mellon Trust Company, N.A., as Trustee

2 North LaSalle Street Suite 1020

Chicago, Illinois 60602

Facsimile: (312) 827-8542

Attention: Corporate Trust

			
	Re:	 	Commercial Barge Line Company

121/2% Senior Secured Note due 2017

CUSIP #
 

Reference is hereby made to that certain Indenture dated July 7, 2009 (the “Indenture”) among
Commercial Barge Line Company (the “Company”), the Guarantors party thereto and The Bank of New
York Mellon Trust Company, N.A., as trustee (the “Trustee”). Capitalized terms used but not
defined herein shall have the meanings set forth in the Indenture.

This certificate relates to $           principal amount of Notes held in (check applicable space)
      book-entry or       definitive form by the undersigned.

The undersigned            (transferor) (check one box below):

o hereby requests the Registrar to deliver in exchange for its beneficial interest in the Global
Note held by the Depositary a Note or Notes in definitive, registered form of authorized
denominations and an aggregate principal amount equal to its beneficial interest in such Global
Note (or the portion thereof indicated above), in accordance with Section 2.6 of the Indenture; or

o hereby requests the Trustee to exchange or register the transfer of a Note or Notes to
           (transferee).

In connection with any transfer of any of the Notes evidenced by this certificate occurring prior
to the expiration of the periods referred to in Rule 144(b) under the Securities Act of 1933, as
amended, the undersigned confirms that such Notes are being transferred in accordance with its
terms:

CHECK ONE BOX BELOW:

(1) o to the Company or any of its subsidiaries; or

(2) o inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under
the Securities Act of 1933, as amended) that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that such transfer is being made in reliance
on Rule 144A under the Securities Act of 1933, as amended, in each case pursuant to and in
compliance with Rule 144A thereunder; or

(3) o outside the United States in an offshore transaction within the meaning of Regulation S under
the Securities Act of 1933, as amended, in compliance with Rule 904 thereunder.

Exhibit A-15

 

Unless one of the boxes is checked, the Registrar will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the registered holder thereof.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature 	 
	 	 	 
	 	 	 
	 	Signature guarantee: 	
 	 
	 	 	(Signature must be guaranteed by a
participant in a recognized signature guarantee medallion program) 	 
	 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended (“Rule 144A”), and is aware that the sale to it is being made in reliance
on Rule 144A and acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 
	 	[Name of Transferee]

 	 
	Dated:                      	
 	 
	 

NOTICE: To be executed by an executive officer

Exhibit A-16

 

SCHEDULE OF EXCHANGES OF 121/2% SENIOR SECURED NOTES

     The following exchanges of a part of this Global Note for other 121/2% Senior Secured Notes have
been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	Signature of	 
	 	 	 	 	 	 	 	 	 	 	 	 	this Global Note	 	 	Authorized Officer	 
	 	 	 	 	Amount of Decrease	 	 	Amount of Increase	 	 	Following Such	 	 	of Trustee or 121/2%	 
	 	 	 	 	in Principal Amount	 	 	in Principal Amount	 	 	Decrease (or	 	 	Senior Secured Note	 
	Date of Exchange	 	 	of this Global Note	 	 	of this Global Note	 	 	Increase)	 	 	Custodian	 
	 
	 

Exhibit A-17

 

EXHIBIT B

FORM OF NOTATIONAL GUARANTEE

     The Guarantor listed below (hereinafter referred to as the “Guarantor,” which term includes
any successors or assigns under that certain Indenture, dated as of July 7, 2009, by and among
Commercial Barge Line Company (the “Company”), the Guarantors party thereto and the Trustee (as
amended and supplemented from time to time, the “Indenture”) and any additional Guarantors) has
guaranteed the Notes and the obligations of the Company under the Indenture, which include (i) the
due and punctual payment of the principal of, premium, if any, and interest on the Notes of the
Company, whether at stated maturity, by acceleration or otherwise, the due and punctual payment of
interest on the overdue principal and premium, if any, and (to the extent permitted by law)
interest on any interest, if any, on the Notes, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with the terms set forth
in Article XII of the Indenture, (ii) in case of any extension of time of payment or
renewal of any Notes or any such other obligations, that the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise, and (iii) the payment of any and all costs and expenses
(including reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing any
rights under this Note Guarantee or the Indenture.

     The obligations of each Guarantor to the Holders and to the Trustee pursuant to this Note
Guarantee and the Indenture are expressly set forth in Article XII of the Indenture and
reference is hereby made to such Indenture for the precise terms of this Note Guarantee.

     No stockholder, employee, officer, director or incorporator, as such, past, present or future
of each Guarantor shall have any liability under this Note Guarantee by reason of his or its status
as such stockholder, employee, officer, director or incorporator.

     This is a continuing Note Guarantee and shall remain in full force and effect and shall be
binding upon each Guarantor and its successors and assigns until full and final payment of all of
the Company’s obligations under the Notes and Indenture or until released in accordance with the
Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the
Holders, and, in the event of any transfer or assignment of rights by any Holder or the Trustee,
the rights and privileges herein conferred upon that party shall automatically extend to and be
vested in such transferee or assignee, all subject to the terms and conditions hereof. This is a
Note Guarantee of payment and not of collectability.

     This Note Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication on the Note upon which this Note Guarantee is noted shall have been executed by the
Trustee under the Indenture by the manual signature of one of its authorized officers. The
Obligations of each Guarantor under its Note Guarantee shall be limited to the extent necessary to
insure that it does not constitute a fraudulent conveyance under applicable law.

Exhibit B-1

 

THE TERMS OF ARTICLE XII OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

     Capitalized terms used herein have the same meanings given in the Indenture unless otherwise
indicated.

Dated as of                     

	 	 	 	 	 
	 	[NAME OF GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit B-2

 

EXHIBIT C

[FORM OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS PURSUANT TO RULE 144A]

American Commercial Lines, Inc.

1701 East Market Street

Jeffersonville, Indiana 47130

Facsimile: (812) 288-0294

Attention: General Counsel

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attn: Corporate Trust

Telecopy No.: (312) 827-8542

	 	Re: 	 	 Commercial Barge Line Company (the “Company”)

121/2% Senior Secured Notes due 2017 (the “Notes”)

Ladies and Gentlemen:

     In connection with our proposed sale of $           aggregate principal amount at maturity of
the Notes, we hereby certify that such transfer is being effected pursuant to and in accordance
with Rule 144A (“Rule 144A”) under the United States Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, we hereby further certify that the Notes are being transferred
to a person that we reasonably believe is purchasing the Notes for its own account, or for one or
more accounts with respect to which such person exercises sole investment discretion, and such
person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A
in a transaction meeting the requirements of Rule 144A and such Notes are being transferred in
compliance with any applicable blue sky securities laws of any state of the United States.

     You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
 	 
	 	[Name of Transferor] 	 
	 	 	 
	 	 	 
	 	By:  
	    

	 
	 	Authorized
Signature 	 
	 	 	 	 
	 	 	 
	 	Signature guarantee: 	
 	 
	 	 	(Signature must be guaranteed by a
participant in a recognized signature guarantee medallion program)	 

Exhibit C-1

 

EXHIBIT D

[FORM OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS

PURSUANT TO REGULATION S]

American Commercial Lines, Inc.

1701 East Market Street

Jeffersonville, Indiana 47130

Facsimile: (812) 288-0294

Attention: General Counsel

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attn: Corporate Trust

Telecopy No.: (312) 827-8542

	 	Re: 	 	 Commercial Barge Line Company (the “Company”)

121/2% Senior Secured Notes due 2017 (the “Notes”)

Ladies and Gentlemen:

     In connection with our proposed sale of $           aggregate principal amount of the Notes, we
confirm that such sale has been effected pursuant to and in accordance with Regulation S under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent
that:

     (1) the offer of the Notes was not made to a person in the United States;

     (2) either (a) at the time the buy order was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States or (b) the transaction was executed in, on or
through the facilities of a designated off-shore securities market and neither we nor any
person acting on our behalf knows that the transaction has been pre-arranged with a buyer in
the United States;

     (3) no directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable; and

     (4) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

     In addition, if the sale is made during a restricted period and the provisions of Rule 903(b)
or Rule 904(b) of Regulation S are applicable thereto, we confirm that such sale has been made in
accordance with the applicable provisions of Rule 903(b) or Rule 904(b), as the case may be.

Exhibit D-1

 

     The Company and you are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
 	 
	 	[Name of Transferor] 	 
	 	 	 
	 
	 	 	 
	 	By:  
	
 
	 
	 	Authorized Signature 	 
	 	 	 	 
	 	 	 
	 	Signature guarantee: 	
 	 
	 	 	(Signature must be guaranteed by a
participant in a recognized signature guarantee medallion program) 	 
	 

D-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]