Document:

Stock Purchase Agreement, dated as of October 15, 2004

 Exhibit 10.6 
  
 EXECUTION COPY 

 PURCHASE AGREEMENT 
  
 by and between 
  
 H-LINES HOLDING CORP. 
  
 (Company) 
  
 and 
  
 STOCKWELL FUND L.P. 
  
 (Purchaser) 
  
 Dated as of October 15, 2004 
  

 PURCHASE AGREEMENT 
  
 PURCHASE AGREEMENT, dated as of October 15, 2004 (this “Agreement”), by and between H-Lines Holding Corp.,
a Delaware corporation (the “Company”), and Stockwell Fund L.P., an Illinois limited partnership (the “Purchaser”). 
  
 WHEREAS, the Purchaser desires to purchase from the Company, and the Company desires to sell to the Purchaser, the number of shares of Series A Redeemable
Preferred Stock, par value $.01 per share, of the Company (the “Preferred Shares”), and the number of shares of Common Stock, par value $.01 per share, of the Company (the “Common Shares”; and together with the
Preferred Shares, the “Company Securities”) set forth opposite the name of the Purchaser on Annex I hereto for the purchase price in cash specified in this Agreement; and 
  
 WHEREAS, the conditions precedent to the purchase of Company Securities by
the Purchaser from the Company pursuant to this Agreement shall include the Purchaser agreeing to become a “Stockholder” under, party to and bound by (i) that certain Stockholders Agreement dated as of July 7, 2004, among the
Company and such other parties whose names appear on the signature pages thereto, as amended, amended and restated, supplemented or otherwise modified from time to time (the “Stockholders Agreement”), and (ii) that certain Amended
and Restated Voting Trust Agreement dated as of October 15, 2004, among the Company, the Purchaser, John K. Castle and such other parties whose names appear on the signature pages thereto, as amended, amended and restated, supplemented or otherwise
modified from time to time (the “Voting Trust Agreement”). 
  
 NOW, THEREFORE, the parties hereto hereby agree as follows: 
  
 1. Definitions. 
  
 As
used in this Purchase Agreement, the following terms shall have the meanings ascribed to them below: 
  
 “Acquisition-Related Documents” shall mean this Agreement, the Stockholders Agreement, the Voting Trust Agreement, the Merger Agreement,
the Put/Call Agreement, the Debt Documents, the Management Agreement, and the Executive Agreements. 
  
 “Affidavits” shall mean, with respect to any Person, an affidavit of such Person, in form and substance reasonably satisfactory to the
Company, stating that the affiant thereunder is a Citizen of the United States, and disclosing such additional information (including, but not limited to, ownership and voting percentages, and status as a Citizen of the United States) with respect
to all or any of its Related Persons, and such agreements or other documents (including, but not limited to, partnership agreements, limited liability company agreements, certificates of incorporation, bylaws and investment adviser agreements) of
the affiant or all or any of its Related Persons, as may be required by the Company in its reasonable discretion. 

 “Agreement” shall have the meaning ascribed to such term in the caption to this Purchase
Agreement. 
  
 “Applicable Law” shall mean, with
respect to any Person, all provisions of laws, statutes, ordinances, rules, regulations, permits, certificates or orders of any Governmental Authority applicable to such Person or any of its assets or property or to which such Person or any of its
assets or property is subject, and all judgments, injunctions, orders and decrees of all courts and arbitrators in proceedings or actions in which such Person is a party or by which it or any of its assets or properties is or may be bound or
subject. 
  
 “business day” shall mean any day
other than a Saturday, Sunday or any other day on which commercial banks are required or authorized by law or regulation to be closed in New York, New York, or Charlotte, North Carolina. 
  
 “Bylaws” shall mean the Bylaws of the Company, together with all amendments and any other modifications
thereto, as in effect from time to time. 
  
 “Castle
Harlan” shall mean Castle Harlan, Inc., a Delaware corporation. 
  
 “Certificate of Incorporation” shall mean the Certificate of Incorporation of the Company, together with all amendments and any other modifications thereto, as in effect from time to time. 

 
 “Citizen of the United States “ shall mean a
“Citizen of the United States” within the meaning of Section 2 of the Shipping Act of 1916, as amended, 46 U.S.C. App. § 802, specifically including subsection (c) of such section, qualified to own and operate vessels in the coastwise
trade of the United States so long as such law, or any other law, rule or regulation to the same substantial effect, remains in effect. 
  
 “Closing” shall have the meaning set forth in Section 2(b)(i). 
  
 “Closing Date” shall have the meaning set forth in Section 2(b)(i). 
  
 “Common Shares” shall have the meaning set forth in the
recitals hereto. 
  
 “Company” shall have the
meaning set forth in the caption to this Purchase Agreement. 
  
 “Company Securities” shall have the meaning set forth in the recitals hereto. 
  
 “Convertible Notes” shall mean the 13.0% Convertible Promissory Notes in the original principal amount of $70,000,000 due July 7, 2005,
issued by the Company on July 7, 2004. 
  
 “Credit
Agreement” shall mean the Credit Agreement dated as of July 7, 2004, among Horizon, HLHC, the parties designated as Guarantors therein, the parties designated as Lenders therein, the parties designated as Issuing Banks therein, and UBS AG,
Stamford Branch, as administrative agent and collateral agent for the Lenders and as Mortgage Trustee thereunder, as amended, amended and restated, supplemented or otherwise modified from time to time. 
  

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 “Debt Documents” shall mean (i) the Credit Agreement, (ii) the Collateral Agreement
dated as of July 7, 2004, among Horizon, as co-borrower, the other Grantors identified therein and UBS, AG, Stamford Branch, as collateral agent for the Secured Parties, (iii) the notes (if any) issued by Horizon and HLHC, as co-borrowers, pursuant
to Section 2.09(e) of the Credit Agreement, (iv) the Purchase Agreement dated June 30, 2004, among HLHC, Horizon, the Guarantors identified therein, and Goldman, Sachs & Co., UBS Securities LLC, and ABN AMRO Incorporated, (v) the Indenture, (vi)
the 9.0% Senior Notes due 2012 dated as of July 7, 2004, co-issued by Horizon and HLHC, referred to in the Indenture as the “144A Global Note”, (vii) the 9.0% Senior Notes due 2012 dated as of July 7, 2004, co-issued by Horizon and HLHC,
referred to in the Indenture as the “Temporary Regulation S Global Note”, (viii) the Amended and Restated Guarantee and Indemnity Agreement dated as of February 27, 2003, among HLH, LLC, Horizon, CSX Corporation, CSX Alaska Vessel Company,
LLC, and SL Service, Inc., as supplemented by the joinder agreements, dated as of July 7, 2004 of HLHC, Horizon Lines of Puerto Rico, Inc., and the Subsidiaries of Horizon listed on Schedule 4(f) hereto, and (ix) the Master Lease Guaranty
dated as of August 20, 2004, by HLHC in favor of LaSalle National Leasing Corporation, as modified or supplemented by the Agreement for Release of Guaranty dated as of August 20, 2004, among LaSalle National Leasing Corporation, Horizon and HLHC, in
each case as the same shall be amended, amended and restated, supplemented or otherwise modified from time to time and including any successor agreement or instrument refinancing or replacing any of the indebtedness, obligations or guarantees
arising under or evidenced by the existing agreement or instrument. 
  
 “Executive Agreements” shall mean (i) the Employment Agreement dated as of July 7, 2004, between Horizon and Charles G. Raymond, and (ii) the Employment Agreement dated as of July 7, 2004, between Horizon and M. Mark
Urbania, in each case as amended, amended and restated, supplemented or otherwise modified from time to time. 
  
 “Final Signed Affidavits” shall have the meaning set forth in Section 2(b)(ii). 
  
 “Fundamental Documents” shall mean the documents by which
any Person (other than an individual) establishes its legal existence or which govern its internal affairs. For example, the “Fundamental Documents” of a corporation would be its certificate of incorporation and bylaws. 

 
 “Governmental Authority” means any Federal, state,
municipal, local or foreign government, governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court, tribunal, arbitrator or arbitral body. 
  
 “HLHC” shall mean Horizon Lines Holding Corp., a Delaware
corporation. 
  
 “Horizon” shall mean Horizon
Lines, LLC, a Delaware limited liability company. 
  

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 “Indenture” shall mean the Indenture dated as July 7, 2004, among HLHC, Horizon, the
Guarantors identified therein, and The Bank of New York Trust Company, N.A., as trustee, as amended, amended and restated, supplemented or otherwise modified from time to time. 
  
 “Management Agreement” shall mean the Agreement dated as of July 7, 2004, among Castle Harlan, HLHC,
Horizon, and the Company. 
  
 “Marad” shall mean
the Maritime Administration, United States Department of Transportation. 
  
 “Merger Agreement” shall mean the Amended and Restated Merger Agreement dated as of July 7, 2004, among the Company, H-Lines Subcorp., a Delaware corporation, HLHC and TC Group, L.L.C., solely in its
capacity as the initial Holder Representative thereunder, as amended, amended and restated, supplemented or otherwise modified from time to time. 
  
 “MFN Letter” means the letter agreement dated as of the Closing Date, between the Company and the Purchaser, substantially in the form
attached hereto as Annex VIII. 
  
 “Observer
Letter” means the letter agreement dated as of the Closing Date, between the Company and the Purchaser, substantially in the form attached hereto as Annex II, with respect to the right of the Purchaser, together with certain other
Persons, to designate an individual to attend meetings of the Company’s Board of Directors. 
  
 “Offering Circular” means the offering circular of HLHC and Horizon, dated as of June 30, 2004, with respect to the offering of $250
million original principal amount of 9.0% Senior Notes due 2012. 
  
 “Payment Instructions Letter” shall have the meaning set forth in Section 2(b)(ii). 
  
 “Person” shall mean any individual, firm, partnership, corporation, trust, joint venture, limited liability company, association, joint
stock company, unincorporated organization or any other entity or organization, including a governmental entity or any department, agency or political subdivision thereof. 
  
 “Preferred Shares” shall have the meaning set forth in the recitals hereto. 
  
 “Purchase Price” shall have the meaning set forth in Section
2(a). 
  
 “Purchaser” shall have the meaning set
forth in the caption to this Purchase Agreement. 
  
 “Put/Call Agreement” shall mean that certain Put/Call Agreement dated as of July 7, 2004, among the Company and the other parties thereto, as the same may be amended, amended and restated, supplemented or otherwise modified
from time to time. 
  

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 “Related Persons” shall mean, with respect to any Person, the directors, officers,
employees, managers, investment advisers, partners, members, stockholders or other security holders of such Person (and of each tier of ownership of such Person and of each of the foregoing Persons). 
  
 “Securities Act” shall mean the Securities Act of 1933, as
amended and all rules and regulations promulgated thereunder. 
  
 “Stockholder Confidentiality Agreement” shall mean the Stockholder Confidentiality Agreement, dated as of the Closing Date, between the Company and the Purchaser, substantially in the form attached hereto as Annex
III. 
  
 “Stockholders Agreement” shall have
the meaning set forth in the recitals hereto. 
  
 “Subsidiary” shall mean any Person (other than an individual) with respect to which a specified Person (or Subsidiary thereof) has the power to vote or direct the voting of sufficient securities to elect a majority of the
board of directors, if a corporation, or other Persons performing similar functions. 
  
 “Transaction Documents” shall mean this Agreement, the Stockholders Agreement, the Voting Trust Agreement, the Stockholder Confidentiality Agreement, the Observer Letter, and the MFN Letter.

  
 “transfer” and “dispose”
shall have, unless the context indicates otherwise, the respective meanings ascribed to such terms in the Stockholders Agreement. 
  
 “Transferee” shall have the meaning set forth in Section 8(a). 
  
 “Voting Trust Agreement” shall have the meaning set forth in the recitals hereto. 
  
 “Voting Trustee” shall have the meaning ascribed to such
term in the Voting Trust Agreement. 
  
 2. Purchase. 
  
 (a) Purchase. 
  
 Subject to the terms and conditions set forth in this Agreement, as of the
Closing Date, the Purchaser hereby agrees to purchase from the Company, and the Company hereby agrees to sell to the Purchaser, the number of Common Shares and Preferred Shares set forth opposite the Purchaser’s name on Annex I hereto
for an aggregate purchase price in cash of $20,653,844 (the “Purchase Price”), which consists of the sum of (i) the amount set forth opposite the name of the Purchaser under the last column on Annex I (the heading of which is
“Base Purchase Price”), and (ii) accrued interest equal to $653,888 on the amount referred to in clause (i) above. For tax reporting purposes, 95% and 5% of such accrued interest shall be allocated to the Preferred Shares and the
Common Shares, respectively, to be acquired by the Purchaser pursuant to this Section 2(a). 
  

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 (b) The Closing. 
  
 (i) The closing (the “Closing”) of the purchase of the Company Securities to be acquired by the Purchaser
pursuant to Section 2(a) hereof shall, subject to the satisfaction of the waiver of the applicable conditions precedent set forth in Section 5 below, take place at the offices of Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York
10022, on the date hereof (the “Closing Date”). 
  
 (ii) At the Closing, (A) the Purchaser shall execute and deliver to the Company an Instrument of Accession in substantially the same form as annexed hereto as Annex IV to become a party to the Voting Trust Agreement, (B) the
Company shall deliver to, and deposit with, the Voting Trustee the certificates representing the Company Securities acquired by the Purchaser pursuant to Section 2(a) hereof (which shall be held in a voting trust in accordance with the Voting Trust
Agreement), (C) the Purchaser shall deliver to the Voting Trustee stock powers with respect to such Company Securities duly executed by such Purchaser in blank (which shall be held in a voting trust in accordance with the Voting Trust Agreement),
(D) the Company shall cause the Voting Trustee to issue and deliver to the Purchaser a Voting Trust Certificate in substantially the same form annexed hereto as Annex V with respect to such Company Securities, (E) the Purchaser shall execute
and deliver to the Company an Instrument of Accession in substantially the same form as annexed hereto as Annex VI to become a party to the Stockholders Agreement, (F) the Purchaser shall deliver to the Company such completed and
signed Affidavits of the Purchaser and the Related Persons (as reasonably specified by the Company) of the Purchaser, dated as of the Closing Date (and ready for possible filing by the Company, in its sole discretion, with Marad or the United States
Coast Guard), as may reasonably be requested by the Company (collectively, the “Final Signed Affidavits”), (G) the Purchaser and the Company shall execute and deliver the Stockholder Confidentiality Agreement, the Observer Letter
and the MFN Letter, and (H) the Company shall deliver to the Purchaser the opinion of counsel for the Company substantially in the same form as annexed hereto as Annex VII. Upon the Closing, the Purchaser shall pay the Purchase Price
pursuant to the payment instructions letter furnished by the Company (the “Payment Instructions Letter”). 
  
 (c) Use of Proceeds. The proceeds received by the Company from the issuance and sale of Company Securities to the Purchaser pursuant to Section
2(a) shall be used by the Company for the prepayment, to the extent of the amount of such proceeds, of the outstanding principal of, and accrued interest on, the Convertible Notes, to the extent such Convertible Notes are then outstanding, in
accordance with the terms of the Convertible Notes. 
  
 3. Representations and
Warranties and Covenants of the Purchaser. 
  
 (a) The
Purchaser represents and warrants that it is acquiring Company Securities for investment for its own account and not with a view to, or for resale in connection with, the distribution or other disposition thereof in violation of the Securities Act.
The Purchaser agrees that it will not, directly or indirectly, offer, transfer, sell, pledge, hypothecate or otherwise dispose of any Company Securities (or solicit any offers to buy, purchase, or otherwise acquire or take a pledge of any Company
Securities), except in compliance with the Securities Act, the rules and regulations promulgated thereunder, applicable state securities laws and the provisions of the Transaction Documents to which it is specified to be a party. The Purchaser

  

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represents and warrants that no other Person will have any interest, beneficial or otherwise, in the Company Securities acquired by the Purchaser hereby,
except as permitted in the Transaction Documents to which the Purchaser is specified to be a party. 
  
 (b) The Purchaser acknowledges that it has been advised that (i) Company Securities are not registered under the Securities Act, and the Company has no
obligation to effectuate any such registration, (ii) Company Securities must be held indefinitely and the Purchaser must continue to bear the economic risk of the investment in Company Securities unless they are subsequently registered under the
Securities Act or an exemption from such registration is available, (iii) Rule 144 promulgated under the Securities Act is not presently available with respect to the sale of any securities of the Company, and the Company has no obligation nor any
intention to make such Rule available, (iv) when and if any Company Securities may be disposed of without registration in reliance on Rule 144, the amounts that may be disposed of may be limited in accordance with the terms and conditions of such
Rule, (v) if the Rule 144 exemption is not available, sale without registration will require compliance with Regulation D or some other exemption under the Securities Act, (vi) restrictive legends will be placed on the certificates representing
Company Securities, and (vii) notations will be made in the appropriate records of the Company indicating that Company Securities are subject to restrictions on transfer and, if the Company should at some time in the future engage the services of a
stock transfer agent, appropriate stop-transfer restrictions will be issued to such transfer agent with respect to Company Securities, 
  
 (c) The Purchaser hereby covenants that if any Company Securities are disposed of by the Purchaser (i) in reliance upon Rule 144 under the Securities Act,
the Purchaser shall deliver to the Company at or prior to the time of such disposition an executed copy of Form 144 (if required by Rule 144) and such other documentation as the Company may reasonably require in connection with such disposition or
(ii) pursuant to another exemption from registration under the Securities Act, the Purchaser shall deliver to the Company a legal opinion, reasonably satisfactory to the Company, as to the availability of and compliance with such exemption.

  
 (d) The Purchaser represents and warrants that (i) it can
afford to hold Company Securities for an indefinite period and to suffer the complete loss of its investment in Company Securities, (ii) it understands and has taken cognizance of all the risk factors related to its acquisition of Company
Securities, (iii) its knowledge and experience in financial and business matters is such that it is capable of evaluating the merits and risks of acquiring Company Securities, (iv) it has reviewed, or has had an opportunity to review, copies of (A)
this Agreement and the other Transaction Documents, (B) the Acquisition-Related Documents, (C) the Company’s Certificate of Incorporation (including, but not limited to, the provisions of Article V thereof, which (1) set forth the
Company’s policy with respect to the ownership of Company Securities by Persons which are not Citizens of the United States, (2) impose transfer restrictions on Company Securities, (3) authorize the marking of certificates evidencing Company
Securities to indicate whether the holder thereof is a Citizen of the United States, and (4) grant the Company certain rights of redemption with respect to Company Securities), (D) the Company’s Bylaws, (E) the Offering Circular, and (F) the
other agreements contemplated hereby and thereby and all of the exhibits and schedules attached hereto and thereto. 
  

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 (e) The Purchaser represents and warrants that (i) it is an “accredited investor” within
the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act, as presently in effect, and (ii) it has had the opportunity to discuss the business, management and financial affairs (current and prospective) of the Company and its
Subsidiaries with the directors, officers and management of the Company and its Subsidiaries and to review the operations and facilities of the Company and its Subsidiaries. 
  
 (f) The Purchaser represents and warrants that (i) it has the requisite power and authority to execute and deliver this
Agreement and the other Transaction Documents to which it is a party and to perform its obligations under this Agreement and such other Transaction Documents, (ii) the execution and delivery by the Purchaser of this Agreement and the other
Transaction Documents to which it is a party and the performance by the Purchaser of its obligations thereunder have been duly authorized by all necessary action on its part, (iii) no other proceedings on its part are necessary to authorize its
execution and delivery of this Agreement or such other Transaction Documents or its performance of its obligations under this Agreement or such other Transaction Documents, (iv) this Agreement and each other Transaction Document to which the
Purchaser is a party has been duly executed and delivered by the Purchaser, (v) the execution and delivery by the Purchaser of this Agreement and each other Transaction Document to which it is a party, and the performance by the Purchaser of its
obligations under this Agreement and each such other Transaction Document, will not result in any conflict with, or result in a violation or breach of, (1) the Fundamental Documents of the Purchaser, (2) any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Purchaser is a party or by which any property or asset of the Purchaser is bound, or (3) any Applicable Law to which the Purchaser is subject or by which any property or asset of the Purchaser
is bound, and (vi) this Agreement and each such other Transaction Document constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. 
  
 (g) The Purchaser represents and warrants that it has the financial
capability to consummate the transactions contemplated by this Agreement and the other Transaction Documents to which it is specified to be a party, and that it understands that, under the terms of this Agreement and such other Transaction
Documents, its obligations hereunder and thereunder are not in any way contingent or otherwise subject to (i) its consummation of any financing arrangements or its obtaining any financing or (ii) the availability of any financing to it. 

 
 (h) The Purchaser represents and warrants that (i) it is a Citizen of the
United States and (ii) the signed or, if in final form for official filing with Marad, unsigned Affidavits that have been delivered by the Purchaser or any Related Person of the Purchaser to the Company on or prior to the Closing Date are true and
correct. 
  
 (i) From the date hereof until such time after the
Closing at which it holds no shares of any class or series of Company Securities, the Purchaser covenants as follows: 
  
 (i) at any time the Purchaser ceases to be a Citizen of the United States, the Purchaser shall notify the Company thereof immediately
thereafter; 
  

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 (ii) the Purchaser shall (and shall cause each Related Person of the Purchaser to) (A)
execute and deliver to the Company such Affidavits (for possible filing by the Company, in its sole discretion, with Marad or the United States Coast Guard) as may be reasonably requested by the Company from time to time (and the Purchaser further
covenants that such Affidavits shall be true and correct), (B) promptly make or cause to be made the filings with Marad or the United States Coast Guard, if any, requested of such Person by the Company (or such Governmental Authority) with respect
to the status of such Person as a Citizen of the United States (and the Purchaser further covenants that such filings shall be true and correct), (C) comply at the earliest practicable date with any request by the Company (or Marad or the United
States Coast Guard) for additional information, documents or other material with respect to such Person or its status as a Citizen of the United States, and (D) cooperate with the Company in connection with any such filing or request and in
connection with resolving any investigation or other inquiry of the Company, Marad or the United States Coast Guard with respect to such filing or request; and 
  

(iii) the Purchaser shall (and shall cause each Related Person of the Purchaser to) promptly inform the Company of any communication by
such Person with, and any proposed understanding, undertaking, or agreement of such Person with, Marad or the United States Coast Guard regarding any filings or requests referred to in clause (ii) above. 
  
 4. Representations and Warranties of the Company. 
  
 The Company represents and warrants to the Purchaser as follows: 

 
 (a) The Company is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Delaware. The Company is duly qualified to do business to transact business and is in good standing in each jurisdiction in which such qualification is required. The Company has all required power and
authority necessary to own and operate its property and to carry on its business as now conducted and presently proposed to be conducted. 
  
 (b) The Company has the requisite corporate power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a
party and to perform its obligations under this Agreement and such other Transaction Documents. The execution and delivery by the Company of this Agreement and the other Transaction Documents to which it is a party and the performance by the Company
of its obligations thereunder have been duly authorized by all necessary corporate action on its part, and no other corporate proceedings on the part of the Company are necessary to authorize its execution and delivery of this Agreement or such
other Transaction Documents or its performance of its obligations under this Agreement or such other Transaction Documents. This Agreement and each other Transaction Document to which the Company is a party has been duly executed and delivered by
the Company. This Agreement and each other Transaction Document to which the Company is a party constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. 
  

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 (c) The execution and delivery by the Company of this Agreement and each other Transaction Document to
which it is a party, and the performance by the Company of its obligations under this Agreement and each such other Transaction Document, will not result in any conflict with, or result in a violation or breach of, (i) the Fundamental Documents of
the Company or any of its Subsidiaries, (ii) any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any Subsidiary thereof is a party or by which any property or asset of the Company or such
Subsidiary is bound, or (iii) any Applicable Law to which the Company or any Subsidiary thereof is subject or by which any property or asset of the Company or such Subsidiary is bound, except, in the case of clause (ii) above, such conflicts or
violations which, individually or in the aggregate, would not reasonably be expected to have a material adverse effect on the business, operations, properties, assets or financial condition of the Company and its Subsidiaries taken as a whole.

  
 (d) As of the date hereof and before giving effect to the
consummation of the transactions contemplated by this Agreement, the other Transaction Documents or the Put/Call Agreement, the authorized capital stock of the Company consisted of (i) 18,000,000 shares of Preferred Stock, par value $.01 per share,
which consisted of 18,000,000 shares designated as Series A Redeemable Preferred Stock, of which (A) 8,391,180 shares were issued and outstanding, (B) 1,102,260 shares were reserved for issuance by the Company pursuant to the Put/Call Agreement, (C)
190,000 shares were reserved for issuance by the Company to employees of the Company and its Subsidiaries, and (D) the remaining shares were not issued, outstanding, held in treasury or reserved for issuance; and (ii) 2,000,000 shares of Common
Stock, par value $.01 per share, of which (A) 559,412 shares were issued and outstanding, (B) 73,484 shares were reserved for issuance by the Company pursuant to the Put/Call Agreement, (C) 120,095 shares were reserved for issuance by the Company to
employees of the Company and its Subsidiaries, and (D) the remaining shares were not issued, outstanding, held in treasury or reserved for issuance. When issued upon the terms and conditions of this Agreement (and paid for as contemplated by this
Agreement), the Company Securities to be acquired by the Purchaser pursuant to Section 2(a) hereof will be validly issued and fully paid and non-assessable, with no personal liability attached to the ownership thereof and not subject to any
preemptive rights, rights of first refusal or other similar rights of the stockholders of the Company (other than as set forth in the Fundamental Documents of the Company and its Subsidiaries or the Transaction Documents), and, based upon the
representations and warranties of the Purchaser set forth in Section 3 hereof, will have been issued in compliance with applicable state and federal securities laws. 
  
 (e) The outstanding Company Securities are all duly and validly authorized and issued, with no personal liability attached
to the ownership thereof, and were issued in compliance with all applicable state and federal securities laws. There are not outstanding any options, warrants, rights (including conversion or preemptive rights) or agreements for the purchase or
acquisition from the Company of any Company Securities, except (i) as set forth in the Fundamental Documents of the Company and its Subsidiaries, (ii) for this Agreement and the other Transaction Documents and the Acquisition-Related Documents, and
(iii) for the options 

  

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issued by HLHC prior to July 7, 2004, exercisable, as of the date hereof, for an aggregate of 29,246 shares of HLHC’s common stock (all of which shares,
upon issuance, are subject to the provisions of the Put/Call Agreement, pursuant to which, as of the date hereof, up to 73,484 Common Shares and up to 1,102,260 Preferred Shares may be issued in exchange for all of such shares), and the option plan
and option agreements pursuant to which such options were granted, in each case as amended or otherwise modified through the date hereof. 
  
 (f) Except for the Subsidiaries of the Company set forth on Schedule 4(f) hereto, the Company does not presently own or control, directly or
indirectly, or hold any rights to acquire, any interest in any other corporation, limited liability company or other business entity. 
  
 (g) No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local
governmental authority on the part of the Company is required in connection with the consummation of the transactions contemplated by this Agreement or the other Transaction Documents to which the Company is a party, except for (i) such filings
required pursuant to applicable state and federal securities laws, which filings will be made within the statutory period and (ii) such filings with Marad which are required by Marad in connection with the transactions contemplated by this
Agreement, which filings will be made following the Company’s receipt of the Final Signed Affidavits. 
  
 (i) Subject in part to the truth and accuracy of the Purchaser’s representations set forth in Section 3 of this Agreement, the offer, sale and
issuance of the Company Securities as contemplated by this Agreement are exempt from the registration requirements of the Securities Act and the qualification or registration requirements of applicable state blue sky laws. Neither the Company nor
any authorized agent acting on its behalf will take any action hereafter that would cause the loss of such exemptions. 
  
 (j) There is no action, suit, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against the Company
or any Subsidiary thereof by any Person that challenges the legality, validity or enforceability of this Agreement or any other Transaction Document to which the Company is a party (or the right of the Company to enter into this Agreement or any
other Transaction Documents to which the Company is a party and to perform its obligations hereunder or thereunder). 
  
 5. Conditions Precedent to Closing. 
  
 (a) Notwithstanding any other provision of this Agreement or any of the other Transaction Documents, the obligation of the Purchaser to consummate the
Closing shall be subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived in whole or in part by the Purchaser): 
  
 (i) All permits, approvals, clearances, filings with and consents of any and all Governmental Authorities
required to be obtained, received or made by the Company, including, without limitation, Marad, in connection with the Closing and the transactions contemplated by this Agreement and the other Transaction Documents shall have been procured.

  

 11 

 (ii) There shall not be in force any order or decree, statute, rule or regulation by any
Governmental Authority restraining, enjoining or prohibiting the consummation of the Closing. 
  
 (iii) Each of the representations and warranties of the Company contained in this Agreement and the other Transaction Documents to which
the Company is a party shall be true and correct in all material respects both on the date hereof and as of the Closing Date (except that any such representation or warranty which speaks, by its terms, as of a specific date or time other than the
date hereof or the Closing, shall be true and correct as of such date), with the same effect as if made on the Closing Date at and as of the Closing, and each of the covenants and agreements of the Company to be performed or complied with by the
Company as of or prior to the Closing shall have been performed or complied with by the Company in all material respects. 
  
 (iv) The Company shall have delivered the certificates, and the other documents (if any) required to be delivered by it pursuant to
Section 2(b)(ii) in accordance with the provisions thereof. 
  
 (b) Notwithstanding any other provision of this Agreement or any of the other Transaction Documents, the obligation of the Company to consummate the Closing shall be subject to the satisfaction, at or prior to the Closing, of each of the
following conditions (any of which may be waived in whole or in part by the Company): 
  
 (i) All permits, approvals, clearances, filings with and consents of any and all Governmental Authorities required to be obtained,
received or made by the Company, including, without limitation, Marad, in connection with the Closing and the transactions contemplated by this Agreement and the other Transaction Documents shall have been procured. 
  
 (ii) There shall not be in force any order or decree,
statute, rule or regulation by any Governmental Authority restraining, enjoining or prohibiting the consummation of the Closing. 
  
 (iii) Each of the representations and warranties of the Purchaser contained in this Agreement and the other Transaction Documents to which
the Purchaser is a party shall be true and correct in all material respects both on the date hereof and as of the Closing Date (except that the representation and warranty of the Purchaser set forth in Section 3(h) hereof shall be true and correct
in all respects as of such date and as of the Closing Date), with the same effect as if made on the Closing Date at and as of the Closing, and each of the covenants and agreements of the Purchaser to be performed or complied with by the Purchaser as
of or prior to the Closing shall have been performed or complied with by the Purchaser in all material respects. 
  

 12 

 (iv) The Purchaser shall have made the payments specified in the Payment Instructions
Letter to be made at the Closing. 
  
 (v) The
Company shall have received the Final Signed Affidavits and the Instruments of Accession and the other documents (if any) required to be received by the Company pursuant to Section 2(b)(ii) in accordance with the provisions thereof. 
  
 6. Further Assurances. 
  
 Each party hereto agrees to execute and deliver any instrument and take any action that may reasonably be requested by any
other party for the purpose of effectuating the provisions of this Agreement. 
  
 7. Annual and Quarterly Reports. From and after the Closing, so long as the Purchaser holds at least 35% of the shares of each series or class of Company Securities purchased by it hereunder (adjusted for splits, stock dividends or
similar pro rata recapitalization events with respect to such class or series of Company Securities), the Company shall furnish, or cause to be furnished, to the Purchaser the reports required to be delivered pursuant to Section 4.18 of the
Indenture (as in effect as of the date hereof), provided that the Indenture remains in effect and such reports are required to be delivered to the holders of the notes issued thereunder. 
  
 8. Miscellaneous Provisions. 
  
 (a) Assignability; Binding Effect. Except as otherwise provided in
this Section, no right under this Agreement shall be assignable and any attempted assignment in violation of this provision shall be void; provided, that, if, after the Closing, the Purchaser shall transfer or dispose of any Company Securities
purchased by it under this Agreement to any Person (a “Transferee”) pursuant to the Stockholder Agreement, such transfer or disposal shall be conditioned on the execution and delivery by such Transferee (if not already a party to
this Agreement) of a joinder agreement to this Agreement reasonably satisfactory to the Company, pursuant to which such Transferee will thereupon become a party to, and be bound by and obligated to comply with the terms and provisions of, this
Agreement as a Purchaser hereunder. This Agreement, and the rights and obligations of the parties hereunder, shall be binding upon and inure to the benefit of any and all successors, permitted assigns, personal representatives and all other legal
representatives, in whatsoever capacity, by operation of law or otherwise, of the parties hereto, in each case with the same force and effect as if the foregoing persons were named herein as parties hereto. 
  
 (b) Notices. Any notice or other communication required or which may
be given hereunder shall be in writing and shall be delivered personally, telecopied with confirmed receipt, sent by certified, registered, or express mail, postage prepaid, or sent by a national next-day delivery service to the parties at the
following addresses or at such other addresses as shall be specified by the parties by like notice, and shall be deemed given when so delivered personally or telecopied, or if mailed, two business days after the date of mailing, or, if by national
next-day delivery service, on the business day after delivery to such service as follows: 
  

 13 

 (i) if to the Company, to it at: 
  
 H-Lines Holding Corp. 
 4064 Colony Road, Suite 200 
 Charlotte, North Carolina 28211 
 Attention: General Counsel 
 Telecopier No.: 704-973-7010 
  
 with a copy to: 
  
 Castle Harlan, Inc. 
 150 East 58th Street, 37th Floor 
 New York, New York 10155 
 Attention: Howard Weiss 
                     Marcel Fournier 
 Telecopier No.: 212-207-8042 
  
 and to: 
  
 Schulte Roth & Zabel LLP 
 919 Third Avenue 
 New York, NY 10022 
 Attention: André Weiss, Esq. 
 Telecopier No.: 212-593-5955 
  
 (ii) If to the Purchaser, to it at: 
  
 Stockwell Fund L.P. 
 c/o Glencoe Capital 
 222 West Adams Street, Suite 1000 
 Chicago, IL 60606 
 Attention: Phillip J. Gerber 
 Telecopier No.: 312-795-0455 
  
 with a copy to: 
  
 Dykema Gossett PLLC 
 124 West Allegan Street, Suite 800 
 Lansing, Michigan 48933 
 Attention: James P. Kiefer 
 Telecopier No.: 517-374-9191 
  
 (c) Applicable Law; Consent; Waiver of Jury Trial. This Agreement and the validity and performance of the terms hereof shall be governed by and construed in accordance with the laws of the State of New York without regard to
principles of conflicts of law or choice of law to the contrary. The parties hereto hereby agree that all actions or proceedings arising directly or indirectly from or in connection with this Agreement shall be litigated only in the Supreme Court of
the State of New York or the United States District Court for the Southern District of New York located in New York County, New York. To the extent permitted by 

  

 14 

 
applicable law, the parties hereto consent to the jurisdiction and venue of the foregoing courts and consent that any process or notice of motion or other
application to either of said courts or a judge thereof may be served inside or outside the State of New York or the Southern District of New York by registered mail, return receipt requested, directed to such party at its address set forth in this
Agreement (and service so made shall be deemed complete five days after the same has been posted as aforesaid) or by personal service or in such other manner as may be permissible under the rules of said courts. EACH PARTY HERETO WAIVES ANY RIGHT IT
MAY HAVE TO TRIAL BY JURY IN ANY ACTION BROUGHT UNDER THIS AGREEMENT OR ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 
  
 (d) Entire Agreement; Amendments and Waivers. This Agreement, together with other Transaction Documents, sets forth the entire understanding of the
parties with respect to the subject matter hereof. The failure of any party to seek redress for the violation of or to insist upon the strict performance of any term of this Agreement shall not constitute a waiver of such term and such party shall
be entitled to enforce such term without regard to such forbearance. This Agreement may be amended only by the written consent of each party hereto, and each party hereto may take any action herein prohibited or omit to take action herein required
to be performed by it, and any breach of or compliance with any covenant, agreement, warranty or representation may be waived only by the written waiver of the party against whom such action or inaction may negatively affect, but, in any case, such
consent or waiver shall only be effective in the specific instance and for the specific purpose for which given. 
  
 (e) Headings, etc. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretations of
the Agreement. The provisions of this Agreement shall be construed according to their fair meaning and neither for nor against any party hereto irrespective of which party caused such provision to be drafted. 
  
 (f) Severability. If any term, provision, covenant or restriction of
this Agreement, or any part thereof, is held by a court of competent jurisdiction or any foreign federal, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid, void,
unenforceable or against public policy for any reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

 
 (g) Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which shall constitute one and the same instrument, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. 
  
 (h) Specific Performance. Each of the parties hereto acknowledges and
agrees that in the event of any breach of this Agreement, the non-breaching party would be irreparably harmed and could not be made whole by monetary damages. It is accordingly agreed that the parties hereto shall and do hereby waive the defense in
any action for specific performance that a remedy at law would be adequate and that the parties hereto, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to compel specific performance of this
Agreement in any action instituted in the Supreme Court of the State 

  

 15 

 
of New York or the United States District Court for the Southern District of New York, or, in the event such courts shall not have jurisdiction of such
action, in any court of the United States or any state thereof having subject matter jurisdiction of such action. 
  
 (i) Survival of Covenants. All covenants, agreements, representations and warranties made herein or in any other document referred to herein or
delivered to a party pursuant hereto or in connection herewith shall survive the execution and delivery to such party of this Agreement and of Company Securities. 
  
 (j) Brokers Fees, etc. Each party hereto represents and warrants to each other party that no broker’s,
finder’s or placement fee or commission will be payable to any Person alleged to have been retained by such representing and warranting party with respect to the transactions contemplated by this Agreement. Each party hereto hereby indemnifies
each other party against and agrees that it will hold each other party and each of such party’s affiliates (and each of the trustee, employees and other fiduciaries or agents of such party) harmless from any claim, demand or liability for any
broker’s, finder’s or placement fee or commission alleged to have been incurred by such indemnifying party, including, without limitation, reasonable attorneys’ fees. 
  
 * * * 
  

 16 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.

  

			
	 STOCKWELL FUND, L.P.

		
	 By:
	 	 STOCKWELL MANAGERS, LLC,
 its general partner

		
	 By:
	 	 /s/ Thomas L. Hufnagel

	 Name:
	 	 Thomas L. Hufnagel

	 Title:
	 	 Vice President

	
	 H-LINES HOLDING CORP.

		
	 By:
	 	 /s/ Charles G. Raymond

	 Name:
	 	 Charles G. Raymond

	 Title:
	 	 President

	

 ANNEX I 
  

																	
	 Name

	  	Number
of Units1

	  	Number
of Common
Shares

	  	Price Per
Common
Share

	  	 Base Price
 for Common
Shares

	  	 Number
 of Preferred
Shares

	  	Price Per
Preferred
Share

	  	 Base Price
 for Preferred
Shares

	  	 Base
 Purchase
 Price

	 Stockwell Fund
	  	126,582	  	126,582	  	$8.00	  	$1,012,656.00	  	1,898,730	  	$10.00	  	$18,987,300.00	  	$19,999,956.00

	1	For purposes of this Agreement, the term “Unit” is intended to refer, solely
for sake of convenience, to (i) 15 Preferred Shares and (ii) one Common Share, and does not constitute a separate security to be issued, sold or purchased pursuant to this Agreement. 

 ANNEX II 
  
 Form of Observer Letter 
  
 See Attached. 

 ANNEX III 
  

Form of Stockholder Confidentiality Agreement 
  
 See Attached. 

 ANNEX IV 
  
 INSTRUMENT OF ACCESSION 
 AMENDED AND RESTATED
VOTING TRUST AGREEMENT 
  
 The undersigned, Stockwell Fund L.P.,
as a condition precedent to becoming the owner or holder of record of (i) one hundred twenty six thousand five hundred eighty two (126,582) shares of Common Stock, par value $0.01 per share, of H-Lines Holding Corp., a Delaware corporation (the
“Company”) and (ii) one million eight hundred ninety eight thousand seven hundred thirty (1,898,730) shares of Series A Redeemable Preferred Stock, par value $0.01 per share, of the Company, hereby agrees to become a
“Stockholder” under, a party to, and bound by, that certain Amended and Restated Voting Trust Agreement dated as of October 15, 2004, by and among the Company, each of the persons or entities listed on the signature pages thereof
and the person whose name appears below as Voting Trustee (the “Voting Trustee”), as amended, restated, amended and restated, supplemented or otherwise modified through the date hereof. This Instrument of Accession shall take effect
and shall become an integral part of said Amended and Restated Voting Trust Agreement immediately upon execution and delivery to the Voting Trustee of this Instrument. 
  
 IN WITNESS WHEREOF, the undersigned has caused this INSTRUMENT OF ACCESSION to be signed as of the date below written.

  

			
	 Signature:
	 	  

	 Address:
	 	 c/o Glencoe Capital

	 	 	 222 West Adams Street, Suite 1000

	 	 	 Chicago, IL 60606

		
	 Date:
	 	  

		
	 Accepted:
	 	 
	
	 VOTING TRUSTEE:

		
	 By:
	 	  

	 Name:
	 	 
		
	 Date:
	 	  

 ANNEX V 
  
 THIS VOTING TRUST CERTIFICATE HAS BEEN ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND NO INTEREST THEREIN MAY BE TRANSFERRED EXCEPT IN
COMPLIANCE, ESTABLISHED TO SATISFACTION OF THE ISSUER, WITH SAID ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER BY THE SECURITIES AND EXCHANGE COMMISSION. 
  
 THIS VOTING TRUST CERTIFICATE AND THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO A STOCKHOLDERS
AGREEMENT ON FILE WITH H-LINES HOLDING CORP. 
  
 VOTING TRUST
CERTIFICATE 
  
 H-LINES HOLDING CORP. 
  
 No. V-
                     
  

					
	Class:	 	 Common Stock Shares:
	 	   126,582

			
	Class:	 	 Series A Redeemable
	 	 
	 	 	 Preferred Stock Shares:
	 	   1,898,730

  
 This certificate is
evidence that Stockwell Fund L.P. has deposited (i) one hundred twenty six thousand five hundred eighty two (126,582) shares of Common Stock, $0.01 par value per share, of H-Lines Holding Corp., a Delaware corporation (“Holdings”),
and (ii) one million eight hundred ninety eight thousand seven hundred thirty (1,898,730) shares of Series A Redeemable Preferred Stock, $0.01 par value per share, of Holdings, with the Voting Trustee hereinafter named in accordance with the terms
and conditions of the Amended and Restated Voting Trust Agreement (the “Agreement”) dated as of October 15, 2004, among Holdings, each of the persons or entities listed on the signature pages thereof and the person whose name
appears below as Voting Trustee (the “Voting Trustee”), as amended, restated, amended and restated, supplemented or otherwise modified through the date hereof. 
  
 This certificate and the interest represented hereby is transferable on the books of the Trust only in accordance with the
terms and conditions of the Agreement and any holder of this Certificate takes the same subject to all of the terms and conditions of the Agreement. 
  
 IN WITNESS WHEREOF, the Voting Trustee has signed this certificate as of the 15th day of October, 2004. 
  

	
	 VOTING TRUSTEE:

	  
  

	 John K. Castle

  

 I-1 

 ANNEX VI 
  
 INSTRUMENT OF ACCESSION 
 STOCKHOLDERS AGREEMENT

  
 The undersigned, Stockwell Fund L.P., as a condition precedent
to becoming the owner or holder of record of (i) one hundred twenty six thousand five hundred eighty two (126,582) shares of Common Stock, par value $0.01 per share, of H-Lines Holding Corp., a Delaware corporation (the “Company”)
and (ii) one million eight hundred ninety eight thousand seven hundred thirty (1,898,730) shares of Series A Redeemable Preferred Stock, par value $0.01 per share, of the Company, hereby agrees to become a “Stockholder” under, a
party to, and bound by, that certain Stockholders Agreement dated as of July 7, 2004, by and among the Company and the other parties thereto, as amended, restated, amended and restated, supplemented or otherwise modified through the date hereof.
This Instrument of Accession shall take effect and shall become an integral part of said Stockholders Agreement immediately upon execution and delivery to the Company of this Instrument. 
  
 IN WITNESS WHEREOF, the undersigned has caused this INSTRUMENT OF ACCESSION to be signed as of the date below written.

  

			
	 Signature:
	 	  

		
	 Address:
	 	  

		
	 Date:
	 	  

		
	 Accepted:
	 	 
		
	 By:
	 	  

		
	 Date:
	 	  

		
	 By:
	 	  

		
	 Date:
	 	  

 ANNEX VII 
  

Form of Opinion of Schulte Roth & Zabel LLP 

 ANNEX VIII 
  

Form of MFN Letter 
  
 See Attached. 

 SCHEDULE 4(f) 
  
 Subsidiaries 
  

	1.	Horizon Lines Holding Corp. 

  

	2.	HLH, LLC 

  

	3.	Horizon Lines of Puerto Rico, Inc. 

  

	4.	Horizon Lines, LLC 

  

	5.	Falconhurst, LLC 

  

	6.	Horizon Lines Ventures, LLC 

  

	7.	Horizon Lines of Alaska, LLC 

  

	8.	Horizon Lines of Guam, LLC 

  

	9.	Horizon Lines Vessels, LLC 

  

	10.	Horizon Services Group, LLC 

  

	11.	Sea Readiness, LLC 

  

	12.	Sea-Logix, LLC 

  

	13.	S-L Distribution Service, LLC 

  

	14.	SL Payroll Services, LLCStockholders Agreement, dated as of July 7, 2004

 Exhibit 10.7 
  
 H-LINES HOLDING CORP. 
  
 STOCKHOLDERS AGREEMENT 
  
 STOCKHOLDERS AGREEMENT, dated as of July 7, 2004 (the “Agreement”), by and among (i) H-Lines Holding Corp. a Delaware corporation (the
“Company”), (ii) Castle Harlan Partners IV, L.P. (“CHP IV,” and together with related accounts or funds managed by Castle Harlan, Inc. (“CHI”) or by an affiliate of CHI, referred to collectively as
the “CHP Group”), (iii) the Rollover Optionholders (as hereinafter defined), (iv) the Rollover Stockholders (as hereinafter defined), (v) the Restricted Stockholders (as hereinafter defined) and (vi) such other Persons who are
parties to this Agreement as of the date hereof or hereafter become parties hereto (together with the Rollover Optionholders, the Rollover Stockholders, and the Restricted Stockholders, the “Other Stockholders” and individually, an
“Other Stockholder”). The Other Stockholders, the CHP Group, and the holders of shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”) and/or shares of preferred stock, par value
$0.01, of the Company (the “Preferred Stock” and together with the Common Stock, the “Shares”) that become parties hereto by executing and delivering to the Company (in compliance with the provisions hereof) an
Instrument of Accession in the form of Exhibit A, are herein referred to collectively as the “Stockholders” and individually as a “Stockholder”. 
  
 RECITALS 
  
 WHEREAS, the Company entered into an Agreement and Plan of Merger Agreement, dated as of May 22, 2004, as amended and restated by the Amended and Restated
Agreement and Plan of Merger, dated as of July 7, 2004, by and among the Company, Horizon Lines Holding Corp. (“Holdings”), H-Lines Subcorp. (“Mergersub”), and TC Group, L.L.C. (the “Merger
Agreement”) pursuant to which Mergersub merged with and into Holdings on July 7, 2004 (the “Merger”) with Holdings as the surviving corporation (such entity, upon consummation of the Merger, the “Surviving
Corporation”); 
  
 WHEREAS, in connection with and
pursuant to the Merger, certain holders of Holdings prior to the effectuation of the Merger (the “Rollover Stockholders”) elected to receive shares of Common Stock and Preferred Stock in lieu of their applicable portion of the
Merger Consideration (as defined in the Merger Agreement); 
  
 WHEREAS, in connection with the Merger, certain holders of options to purchase common stock (the “Rollover Options”) of Holdings (the “Rollover Optionholders”) elected to retain their Rollover Options in
the Merger, provided, that such Rollover Options would be subject to an agreement by and among the Company and such Rollover Optionholder (the “Put/Call Agreement”) pursuant to which upon the exercise of the Rollover Options for
shares of common stock of the Surviving Corporation (“Surviving Corporation Common Stock”), (i) the Company has the right to require such Rollover Optionholder to exchange such shares of Surviving Corporation Common Stock for shares
of Common Stock and Preferred Stock (the “Call Right”) pursuant to the Put/Call Agreement and (ii) such Rollover Optionholder has the right to require the Company to exchange such shares of Surviving Corporation Common Stock for
shares of Common Stock and Preferred Stock (the “Put Right”) pursuant to the terms of the Put/Call Agreement; 

 WHEREAS, certain of the Stockholders have entered or will enter into subscription agreements with the
Company, dated as of the date hereof (each, a “Subscription Agreement”) pursuant to which such Stockholders have, among other things, purchased Shares which are subject to restricted stock agreements with the Company, dated as of
the date hereof (each, a “Restricted Stock Agreement”, the Shares subject to such Restricted Stock Agreements, the “Restricted Shares” and the Stockholders with respect to their Restricted Shares, sometimes
hereinafter referred to as, the “Restricted Stockholders”). 
  
 WHEREAS, it is a condition to the parties entering into their respective Subscription Agreements, Restricted Stock Agreements, or being entitled to make the rollover elections in connection with the Merger Agreement
that this Agreement be executed and delivered; 
  
 WHEREAS, it is
contemplated that the Company will sell additional shares of Common Stock and Preferred Stock to certain employees of the Company within six months of the closing of the Merger; and 
  
 WHEREAS, the parties hereto desire to enter into this Agreement to place certain restrictions on the sale, assignment,
transfer or other disposition of the Rollover Options, the Surviving Corporation Common Stock, and the Shares (collectively, the “Securities”) and to provide for certain rights and obligations in respect thereto as hereinafter
provided. 
  
 NOW, THEREFORE, in order to implement the foregoing
and in consideration of the mutual representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows: 
  
 1. Ownership, Authority and Authorization. 
  
 (a) Each of the Stockholders (other than the Rollover Optionholders) represents and warrants to each other and the Company that such Stockholder (i) is
the legal holder and beneficial owner of the number of shares of Common Stock and Preferred Stock set forth opposite such Stockholder’s name on Schedule 1 hereto, free and clear of all liens, claims and encumbrances, (ii) is subject to
the voting trust between such Stockholder and the Company (the “Stockholder Voting Trust”), (iii) subject to the Stockholder Voting Trust, has sole voting power with respect to the Shares owned by such Stockholder and (iv) had full
right, power and authority to purchase its Shares, at the time of such purchase. 
  
 (b) Each Rollover Optionholder represents and warrants to each other and the Company that such Rollover Optionholder (i) is the legal holder and beneficial owner of the number of Rollover Options and upon exercise
thereof, will own the number of shares of the Surviving Corporation Common Stock set forth opposite such Rollover Optionholder’s name on Schedule 2 hereto, free and clear of all liens, claims and encumbrances, (ii) is subject to the
voting trust, between such Rollover Optionholder and the Surviving Corporation (the “Optionholder Voting Trust”), (iii) upon exercise of the Rollover Options such Rollover Optionholder will have, subject to the Optionholder Voting
Trust, sole voting power with respect to the Surviving Corporation Common Stock, and upon exercise in full of the Call Right or Put Right, such Rollover Optionholder will have, subject to the Stockholder Voting Trust, sole 

  

 2 

 
voting power with respect to the Shares owned by such Stockholder and (iii) has full right, power and authority to receive its shares of Surviving
Corporation Common Stock at the time of exercise of the Rollover Options and the Shares, at the time of exercise of the Call Right or Put Right. 
  
 (c) Each of the parties hereto represents and warrants to each other and the Company that (i) such party has full right, power and authority to enter into
this Agreement and carry out all the transactions contemplated hereby, and perform, comply with or satisfy all of the agreements, obligations and conditions required to be so performed, complied with or satisfied by such party under this Agreement
and (ii) this Agreement has been duly authorized, executed and delivered by such party and, assuming the due authorization, execution and delivery of this Agreement by the other parties hereto, constitutes the legal, valid and binding obligation of
such party enforceable against it in accordance with its terms. 
  
 (d) Each Stockholder who is an individual and resides in any state, territory or other jurisdiction with community property laws with respect to marital property shall deliver a duly executed Consent and Agreement of Spouse in the form
attached hereto as Exhibit B. 
  
 2. Investment
Purpose. 
  
 (a) Each Stockholder represents, warrants and
covenants to each other Stockholder and the Company that (i) such Stockholder has acquired, is acquiring or will acquire, as the case may be, its Securities for investment for its own account and not with a view to the sale or other distribution
thereof except as set forth herein, (ii) such Stockholder will not, directly or indirectly, sell, transfer, pledge, assign, encumber or otherwise dispose of any Securities except in accordance with this Agreement and unless such Securities are
registered under the Securities Act of 1933, as amended (the “Securities Act”), or unless such Stockholder shall have supplied the Company with an opinion of counsel reasonably satisfactory to the Company to the effect that such
registration is not required, and (iii) before acquiring any Securities, such Stockholder has investigated the Company and its business, and such Stockholder has had made available to such Stockholder all information necessary for such Stockholder
to make an informed decision to acquire the Securities. Each Stockholder considers itself to be a Person possessing experience and sophistication as an investor adequate for the evaluation of the merits and risks of such Stockholder’s
investment in the Securities. 
  
 (b) The Stockholders understand
(i) that none of the Securities have been registered under the Securities Act, the Delaware Securities Act or any other state or federal securities laws (collectively, the “Securities Laws”) and that the Company is issuing such
Securities in reliance upon the exemptions from the registration requirements of the Securities Laws providing for issuance of securities not involving a public offering (ii) that the Company has relied upon the fact that the Securities are to be
held by each Stockholder for investment, and (iii) that exemption from registration under the Securities Act may not be available if the Securities were acquired by a Stockholder with a view to distribution. 
  
 3. Voting Matters. It is understood and agreed that (a) all of the
shares of Surviving Corporation Common Stock issued upon exercise of the Rollover Options shall be deposited in the Optionholder Voting Trust, (b) all of the Shares held by the Stockholders (other than the 

  

 3 

 
CHP Group) and all Shares issued pursuant to the Put/Call Agreement shall be deposited in the Stockholder Voting Trust, (c) that the voting trustee under the
Optionholder Voting Trust and the Stockholder Voting Trust shall at all times comply with each provision of this Stockholders Agreement and nothing in the Stockholder Voting Trust or Optionholder Voting Trust (collectively, the “Voting
Trusts”) shall be interpreted to give the voting trustee the power to vote in derogation of the obligations set forth herein, and (d) that all Shares issued pursuant to the Put/Call Agreement shall be Securities subject to this Agreement.
All votes of the Stockholders referred to herein, other than this Section 3, shall mean the vote of the Stockholders individually as signatories to this Agreement and not as stockholders of the Company. 
  
 4. Application; General Restrictions on Transfer of Shares.

  
 (a) Application. This Agreement is intended to apply
to all Securities held in the present or in the future by any Stockholder hereto. 
  
 (b) Restrictions. Except as expressly provided in Section 5 of this Agreement, and except for any deposit of Securities under the Voting Trusts, each Stockholder agrees not to transfer or otherwise dispose of
any Securities owned by such Stockholder from time to time, or any interest therein, and any attempt by such Stockholder to effect a transfer or disposition in violation of this Agreement hereof shall be void and ineffective for all purposes. For
the avoidance of doubt, the shares of Surviving Corporation Common Stock shall not be transferable and no provision in this Agreement shall be construed to permit a transfer of Surviving Corporation Common Stock other than pursuant to the Put/Call
Agreement. The words “transfer” and “dispose” include the making of any sale, exchange, assignment, gift, security interest, pledge, hypothecation or other encumbrance, or any contract therefor, any voting trust or
other agreement or arrangement with respect to the transfer of voting rights or any other beneficial interest in the Securities, the creation of any other claim thereto, the change of control of a Stockholder’s ultimate parent entity or
controlling Person, as the case may be, as of the date hereof where such ultimate parent entity or controlling Person, as the case may be, ceases to maintain direct or indirect majority beneficial ownership of, or voting control over, such
Stockholder or any other transfer or disposition whatsoever, whether voluntary or involuntary, affecting the right, title, interest or possession in or to the Securities. 
  
 (c) Competitor; Adverse Party. Notwithstanding any provision in this Agreement to the contrary, no transfer shall be
made, unless consented to by the Company, to any Person that is a competitor of the Company or any of its subsidiaries, or is or has threatened to become an adverse party in any pending or threatened legal or arbitration proceeding with the Company
or any of its subsidiaries (as determined by the Board of Directors of the Company) or CHI or CHP IV, or a customer or supplier of the Company or any of its subsidiaries. 
  
 (d) Books and Records. The Company and the Surviving Corporation agree that it will not cause or permit any transfer
of any Securities to be made on its respective books unless such transfer is expressly permitted by this Agreement and has been made in accordance with the terms hereof. 
  

 4 

 (e) Stock Legend. The parties hereto agree that each certificate representing the Securities
issued to any holder bound by the terms hereof shall bear the following legend: 
  
 THE SECURITIES OF THE COMPANY REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A STOCKHOLDERS AGREEMENT, DATED AS OF JULY 7, 2004, WHICH CONTAINS PROVISIONS REGARDING RESTRICTIONS ON THE TRANSFER OF SUCH SECURITIES AND
OTHER MATTERS. A COPY OF SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OR IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE. 
  
 5. Permitted Transfers. A
Stockholder shall be permitted to transfer any Securities in accordance with the following provisions: 
  
 (a) by any member the CHP Group (i) to any affiliate or Person controlling, controlled by, or under common control with, the CHP Group, (ii) upon any
liquidation or any other distribution to the partners or any other holders of a beneficial interest in any member of the CHP Group, (iii) to any director or employee of the Company or affiliate, (iv) to any one or more of the spouse, lineal
relatives (including adopted descendants), the spouses of lineal descendants or custodians or trustees for the benefit of such relatives or such Persons specified in (a)(i), (a)(ii) or (a)(iii), (subsections (a) and (b) below being collectively
referred to as the “Permitted CHP IV Transferees”); 
  
 (b) (i) by a permitted CHP IV Transferee to another permitted CHP IV Transferee or (ii) by any member of the CHP Group to any third party of all or a portion of the Convertible Notes (as hereinafter defined) or any of the Shares acquired
upon conversion of convertible promissory notes, dated as of the date hereof, issued by the Company to CHP IV and/ or other members of the CHP Group (collectively, the “Convertible Notes”); 
  
 (c) by any Other Stockholder (i) to any Person controlling, controlled by, or
under common control with such Other Stockholder, or (ii) to any one or more of his or her spouse, lineal relatives (including adopted descendants), the spouses of lineal descendants or custodians or trustees for the benefit of such relatives or
such Other Stockholder ((c)(i) and (c)(ii) collectively, the “Permitted Stockholder Transferees” and together with the Permitted CHP IV Transferees, the “Permitted Transferees”); provided, however,
that such Permitted Transferee(s) shall take such Securities subject to and be fully bound by this Agreement with the same effect as if it were a party hereto and shall execute and deliver to the Company an Instrument of Accession in the form of
Exhibit A hereto and such additional documentation as the Company’s Board of Directors may require to admit such Permitted Transferee as a 

  

 5 

 
Stockholder of the Company, and references herein to Securities held or owned by any Stockholder shall be deemed to include Securities held or owned by any
such Permitted Transferee(s); and 
  
 (d) by a Stockholder in
accordance with Section 6 of this Agreement. 
  
 6. Purchase
Rights Upon Transfer. For the purposes of this Agreement, “Underlying Shares” shall mean the Shares that would become outstanding upon the exercise of Rollover Options and the exercise of the Put/Call Agreement. References to
Underlying Shares owned by a Rollover Optionholder shall mean the Shares that such Rollover Optionholder would own assuming exercise of the Rollover Options and of the Put/Call Agreement. 
  
 (a) Right of First Offer In Sales By Other Stockholders. 
  
 (i) If any Other Stockholder or group of Other Stockholders or Permitted
Transferees thereof (a “Selling Stockholder”) shall desire to sell (to a Person other than a Permitted Transferee) in a single transaction or a series of related transactions any number of Shares, the Selling Stockholder
shall not approach any possible buyer but shall give prompt written notice thereof (the “Offering Notice”) setting forth the number and type of Shares it desires to sell (the “Offered Shares”) to CHP
IV and the Company. 
  
 (ii) The Company may offer, within the
30-day period following the date the Offering Notice shall have been given (the “Option Period”), to purchase all, but not less than all, of the Offered Shares at a price and on terms and conditions set forth in a written notice
(the “Company Notice”) delivered to the Selling Stockholder. 
  
 (iii) If the Company does not offer to purchase the Offered Shares pursuant to clause (ii) of this Section 6(a), CHP IV may offer, within the fifteen days following the expiration of the Option Period (such fifteen
day period, the “Extended Option Period”), to purchase all, but not less than all, of the Offered Shares at a price and on the terms set forth in a written notice (the “Stockholder Notice”) delivered to the
Selling Stockholder. 
  
 (iv) The Selling Stockholder may accept
or reject any offer (the “Offer”) of which it receives notice pursuant to clauses (a)(ii) and (a)(iii) above by delivering a notice (the “Response Notice”) to CHP IV and the Company within 15 days of the expiration
of either the Option Period or the Extended Option Period, as the case may be. If a Response Notice is not sent, the Offer shall be deemed rejected. If the Selling Stockholder accepts the Offer, the purchase and sale shall occur in accordance with
the provisions below. 
  
 (v) Upon the Selling Stockholder’s
first rejection of either of such Offers, CHP IV may, in its sole discretion, take either of the following actions by notice to the Selling Stockholder given within 15 days following such rejection and identifying which option CHP IV elects:

  
 (A) seek to join the Selling Stockholder in
selling its Shares and jointly pursue for a period of 180 days from the expiration of the Extended Option Period a sale of the entire Company, which sale shall be agreed to by each Stockholder party 

  

 6 

 
hereto if a definitive agreement for such sale is entered within 90 days of the expiration of the Extended Option Period and such definitive agreement
provides for the sale of all of the Shares of the Company and other Securities subject to this Agreement on terms and conditions which are not less favorable to the Stockholders as the terms of the rejected offer; 
  
 (B) subject to Sections 6(e) and 6(f), permit the Selling
Stockholder to consummate a sale of the Offered Shares by entering within 90 days from the expiration of the Extended Option Period into a definitive agreement with a third party so long as such sale is on terms and conditions which are no less
favorable to the Selling Stockholder than the terms of such rejected offer. 
  
 (vi) If any sale to a third party, pursuant to Section 4(a)(v) above, is not consummated within 120 days of the date of execution of the applicable purchase agreement, the restrictions provided for herein shall again
become effective, and no transfer of such Offered Shares may be made thereafter (other than in a transfer pursuant to Section 5 hereof) by the Selling Stockholder without again offering the same to CHP IV and the Company in accordance with this
Section 6(a). 
  
 (b) Right of First Offer in Third Party
Offers to Other Stockholders. If, at any time, any Other Stockholder receives an unsolicited offer to purchase such Other Stockholder’s Shares from a third party (other than pursuant to a transfer permitted under Section 5), such Other
Stockholder shall immediately notify the Company and CHP IV and the right of first offer pursuant to Section 6(a) shall apply before such Other Stockholder may respond substantively to such unsolicited offer if such Other Stockholder desires to
sell. 
  
 (c) Closings. (i) The closing for the purchase by
the Company or CHP IV, as the case may be, of the Offered Shares under Section 6(a) shall be held at 10:00 a.m. at the principal office of the Company, on the date specified in the Company Notice or the Stockholder Notice, as the case may be (the
“Closing Date”), which date shall be not earlier than 30 days nor later than 60 days after the expiration of the Option Period or the Extended Option Period, as the case may be. The purchase price and all other terms for such
purchase of the Offered Shares shall be as set forth in the Company Notice or the Stockholder Notice, as the case may be. At such closing, the Selling Stockholders shall deliver certificates representing the Shares to be sold, duly endorsed for
transfer and accompanied by all requisite stock transfer taxes, if any, against payment of the purchase price therefor, and the Shares to be transferred shall be free and clear of any liens, charges, claims or encumbrances (other than restrictions
imposed pursuant to the Shares Laws and restrictions imposed by this Agreement and, if applicable, the Voting Trusts and the Company’s credit facilities) and each selling Stockholder shall so represent and warrant. Each selling Stockholder
shall further represent and warrant that it is the record and beneficial owner of such Shares and it and the buyer shall make such additional representations and warranties as shall be customary in transactions of a similar nature. 
  
 (ii) Any sale to third parties by any Stockholder permitted pursuant to the
terms of Section 6(a) shall be subject to the rights provided in Section 6(e). 
  

 7 

 (d) Limitation on Frequency. No Stockholder may give more than one Offering Notice in any
twelve-month period. 
  
 (e) Tag Along Rights. 

 
 (i) (A) In addition to the rights afforded under Section 6(a), if any
Stockholder proposes to transfer to any Person other than a Permitted Transferee (the “Transferring Stockholder”), in a single transaction or a series of related or unrelated transactions a number of its Shares greater than 25% of
the outstanding Shares and Underlying Shares held by such Transferring Stockholder on the Closing Date (a “Proposed Sale”), each Stockholder (other than the Transferring Stockholder) shall be offered, as provided below, the
opportunity in connection with each such Proposed Sale that, alone or together with previous related or unrelated sales, exceeds 25% of the outstanding shares held by such Transferring Stockholder, to sell a portion of its Shares of the same class
on the Applicable Terms and Conditions (as defined in clause (v) below). 
  
 (B) The Transferring Stockholder shall give no less than 30 days’ prior written notice (the “Tag Along Offer Notice”) of the Proposed Sale and its terms to the other Stockholders, provided that
the Company shall transmit such offer and perform or cause to be performed such administrative actions as may be necessary in order to provide for the processing of the transactions contemplated thereby without charge. Each Stockholder (the
“Electing Stockholder”) who accepts the offer by written notice (the “Tag Along Acceptance Notice”) to the Company within 20 days (the “Tag Along Acceptance Period”) after the date of the Tag Along
Offer Notice (and in any case not less than 15 days prior to the date of the closing of the Proposed Sale) shall have the right to sell to the purchaser in such Proposed Sale that number of Shares of the same class as shall equal the product of (x)
the number of such Shares or Underlying Shares owned by the Electing Stockholder as of the last day of such 30-day period, multiplied by (y) the quotient determined by dividing (1) the number of such Shares proposed to be transferred by the
Transferring Stockholder in the Tag Along Offer Notice and (2) the number of such Shares and Underlying Shares owned by the Transferring Stockholder as of the last day of such 30-day period. If the total number of such Shares that the Transferring
Stockholder and Electing Stockholders would sell pursuant to this Section 6(e) exceed the total number of Shares that such purchaser is willing to purchase, no Shares shall be sold. 
  
 (ii) In addition to the rights of the Stockholders under Section 6(e)(i), if any Stockholder proposes to transfer to a
Person other than a Permitted Transferee (the “Transferring 25% Stockholder”), in a single transaction or a series of related or unrelated transactions a number of Shares less than or equal to 25% of the outstanding Shares and
Underlying Shares held by such Transferring Stockholder on the Closing Date (a “Proposed 25% Sale”), each Stockholder (other than the Transferring 25% Stockholder) shall be offered, as provided below, the opportunity in connection
with each such Proposed 25% Sale to sell a portion of its Shares of the same class on the Applicable Terms and Conditions. The Transferring 25% Stockholder shall give no less than 30 days’ prior written notice (the “25% Tag Along Offer
Notice”) of the Proposed 25% Sale and its terms to all Stockholders, provided 

  

 8 

 
that the Company shall transmit such offer and perform or cause to be performed such administrative actions as may be necessary in order to provide for the
processing of the transactions contemplated thereby without charge. Each Stockholder (the “Electing 25% Stockholder”) that elects to accept the offer by written notice (the “25% Tag Along Acceptance Notice”) to the
Company within 20 days (the “25% Tag Along Acceptance Period”) after the date of the 25% Tag Along Offer Notice (and in any case not less than 15 days prior to the date of the closing of the Proposed 25% Sale) shall have the
opportunity to sell to the purchaser in such Proposed 25% Sale that number of Shares of the same class owned by the Electing 25% Stockholder as shall equal the product of (x) the number of Shares proposed to be transferred by the Transferring 25%
Stockholder in the 25% Tag Along Offer Notice multiplied by (y) the quotient determined by dividing (1) the number of Shares and Underlying Shares owned by such Electing 25% Stockholder as of the last day of such 30-day period and (2) the aggregate
number of outstanding Shares on a Fully-Diluted Basis as of the last day of such 30-day period. The number of Shares to be sold by the Transferring 25% Stockholder shall be reduced proportionately to the extent necessary to provide for the sale of
Shares by each Stockholder exercising its rights hereunder. “Fully-Diluted Basis” as used in this Agreement, shall mean giving effect to all Shares outstanding at the time of determination plus all Shares issuable upon conversion of
any convertible securities or the exercise of any option, warrant, the Put Right, the Call Right or any other similar right, whether or not then presently exercisable. 
  
 (iii) With respect to each sale of Shares by the Transferring Stockholder or the Transferring 25% Stockholder and the
Electing Stockholders or the Electing 25% Stockholders under this Section 6(e), the closing therefor shall be held on the date specified in the Tag Along Offer Notice or the 25% Tag Along Offer Notice, as the case may be. At such closing, the
Transferring Stockholder or the Transferring 25% Stockholder and the Electing Stockholders or the Electing 25% Stockholders shall deliver certificates representing the Shares to be sold, duly endorsed for transfer and accompanied by all requisite
stock transfer taxes, if any, against payment of the purchase price therefor, and the Shares to be transferred shall be free and clear of any liens, charges, claims or encumbrances (other than restrictions imposed pursuant to applicable Securities
Laws, this Agreement, the Voting Trusts and applicable credit agreements). 
  
 (iv) The Transferring Stockholder or the Transferring 25% Stockholder shall have up to 60 days after the expiration of the Tag Along Acceptance Period or the 25% Tag Along Acceptance Period, as the case may be, in
which to sell the Shares owned by such Transferring Stockholder or Transferring 25% Stockholder and by the Electing Stockholders or the Electing 25% Stockholders at a price and on terms equal to that contained in the Tag Along Offer Notice or the
25% Tag Along Offer Notice, as the case may be. If at the end of such 60-day period, the Transferring Stockholder or the Transferring 25% Stockholder has not completed the sale, such Transferring Stockholder or Transferring 25% Stockholder, as the
case may be, shall remain bound by all the restrictions on transfer contained in this Agreement. 
  
 (v) For purposes of this Section 6(e), (A) “Applicable Stockholder” shall mean either (x) an Other Stockholder, if the Transferring
Stockholder is an Other Stockholder or a Permitted Transferee thereof, or (y) the CHP Group, if the Transferring Stockholder is the CHP Group or a Permitted Transferee thereof (excluding a Permitted Transfer 

  

 9 

 
under Sections 5(a) and 5(b)); and (B) ”Applicable Terms and Conditions” shall mean (x) with respect to a single transaction, the same terms
and conditions as those received by the Transferring Stockholder or the Transferring 25% Stockholder in such transaction, (y) with respect to a series of related transactions, the best of the terms and conditions (as determined by the Board of
Directors of the Company, in their sole and reasonable discretion) received by the Transferring Stockholder or the Transferring 25% Stockholder in such transactions or (z) with respect to a series of unrelated transactions, the terms and conditions
of the latest applicable transaction received by the Transferring Stockholder or the Transferring 25% Stockholder in such transaction. 
  
 (f) Drag-Along Right. 
  
 (i) If CHP IV or a Permitted CHP Transferee proposes to transfer, in a single transaction or a series of related transactions (to the same purchaser or
affiliated purchasers), to any Person other than a Permitted CHP Transferee more than 50% of the Shares owned by CHP IV and all Permitted CHP Transferees (excluding a Permitted Transfer under Sections 5(a) and 5(b)) in a bona fide transaction to an
unaffiliated third party (regardless of whether such disposition is by means of a sale of such Shares, a merger of the Company in which such Shares are converted into the right to receive cash, or a sale of all or substantially all of the assets of
the Company and a subsequent distribution of the proceeds therefrom), CHP IV or the Permitted CHP Transferee shall be entitled, by delivery of 30 days’ prior written notice to the Other Stockholders, specifying the name and address of the
proposed parties to such transaction and the terms thereof, to require each such Other Stockholder to sell a number of the Shares held by it (plus any Rollover Options as may be necessary to account for Shares on the basis of the Underlying Shares
relating thereto) equal to the product of (x) the outstanding number of such Shares plus the Underlying Shares owned by such Other Stockholder as of the last day of such 30-day period, multiplied by (y) the quotient determined by dividing (1) the
outstanding number of Shares being transferred by CHP IV or the Permitted CHP Transferee and (2) the outstanding number of Shares owned by CHP IV and all Permitted CHP Transferees as of the last day of such 30-day period, upon the same terms as CHP
IV or the Permitted CHP Transferee, as the case may be, in the proposed transaction, and such Other Stockholder shall comply and sell its Shares and its Rollover Options computed on the basis of the Underlying Shares relating thereto. The price for
any Rollover Option (or portion thereof) being transferred under this Section 6(f) shall be the per Share price to be received by CHP IV or the Permitted CHP Transferee, as the case may be, net of the exercise price therefor, multiplied by the
number of Shares for which such Rollover Option (or portion thereof) may then be exercised. 
  
 (ii) The closing of any transaction pursuant to this Section 6(f) shall be held at such time and place as CHP IV or the Permitted CHP Transferee shall reasonably specify. At such closing, the selling Stockholders
shall deliver stock certificates representing the Shares or transfer instruments relating to Rollover Options to be sold, duly endorsed for transfer and accompanied by all requisite stock transfer taxes, if any, against payment of the purchase price
therefor, and the Shares and Rollover Options to be transferred shall be free and clear of any liens, charges, claims or encumbrances (other than restrictions imposed pursuant to applicable Securities Laws, the Voting Trusts and this Agreement), and
each selling Stockholder shall so represent and warrant. Each selling Stockholder shall further represent and warrant that it is the 

  

 10 

 
record and beneficial owner of such Shares or Rollover Options and make such additional representations and warranties as shall be customary in transactions
of a similar nature subject to the provisions of subsection (h) below. The right of CHP IV or the Permitted CHP Transferee to transfer its Shares and require the sale by the Other Stockholders of their Shares and Rollover Options pursuant to this
Section 6(f) shall expire 90 days from the signing of the definitive agreement with respect to the transaction or transactions contemplated under this Section 6(f). 
  
 (iii) At the request of CHP IV, in connection with any transaction in which the drag-along right would be triggered under
this Section 6(f) (including a sale, a merger, or a sale of all or substantially all of the assets of the Company and a subsequent distribution of the proceeds therefrom), each Stockholder will execute and deliver an irrevocable proxy in the form of
Exhibit C attached to this Agreement and will not revoke such proxy prior to the termination this Agreement. 
  
 (g) No Liability Upon Non-Sale; Representations. Notwithstanding anything contained in this Section 6, there shall be no liability on the part of a
selling Stockholder to any other Stockholder in the event that no Shares are sold even if the provisions of Section 6 have been triggered. With respect to any transfers by the Stockholder pursuant to this Section 6, the Stockholder shall not be
required to make any representations and warranties to any Person in connection with such transfer or provide any indemnities in connection with such transfer except for representations and warranties, covenants, indemnities, holdbacks and escrow
provisions, if any, and any similar provisions that are identical to those to which any Stockholder party to such sale agreement is subject, provided, that to the extent the Stockholder is required to provide indemnities in connection with any such
transfer, the Stockholder shall not be required to provide indemnification that would result in an aggregate liability to the Stockholder in excess of the Stockholder’s proceeds from the transfer, and such indemnities shall be made by the
Stockholders severally and not jointly and provided further that no such representations and warranties as to the conduct of the business and ownership of properties by the Company need be given. 
  
 (h) Third Party Bound. If any third party purchases any number of
Securities pursuant to this Section 6 that is less than 100% of the outstanding number of Shares (on a Fully-Diluted Basis), such third party shall, unless otherwise agreed by Stockholders (other than such purchaser) owning 50.1% or more of the sum
of (i) outstanding Shares and (ii) Underlying Shares (including Other Stockholders holding at least 50.1% of all Shares then held by all Other Stockholders) but not counting unvested Restricted Shares, take such Securities subject to and be fully
bound by this Agreement with the same effect as if it were a party hereto and shall execute and deliver to the Company an Instrument of Accession in the form of Exhibit A hereto, and thereafter references herein to Shares, Rollover Options,
Restricted Shares, Surviving Corporation Common Stock or Securities held or owned by any Stockholder shall be deemed to include Shares, Rollover Options, Restricted Shares, Surviving Corporation Common Stock or Securities held or owned by any such
third party, and the selling Stockholders selling Shares or Rollover Options to such third party shall sell their Securities only upon receipt by the Company of such executed Instrument of Accession. 
  

 11 

 (i) Transfer of Strips. Notwithstanding any provision in this Agreement to the contrary, unless
otherwise consented to in writing by the board of directors of the Company, no transfer made pursuant to the terms and conditions set forth in this Agreement may be made unless such transfer is made on a tandem basis of one share of Common Stock and
15 shares of Preferred Stock; provided, that if any Stockholder does not hold both Common Stock and Preferred Stock (and for purposes of such determination, the Company shall include all Common Stock and Preferred Stock held by any affiliates
and Permitted Transferees of such Stockholders), then such Stockholder may transfer the type of Securities held by such Stockholder without regard to the foregoing limitation. 
  
 7. Preemptive Rights. 
  
 (a) If after the date hereof the Company proposes to issue or sell any Shares or other rights, options, warrants or other convertible securities which
represent rights to purchase Shares and subject to subsection (d) below, each Preemptive Rightholder (as defined in subsection (c) below) shall have the right (the “Preemptive Right”) to purchase a number of Shares at the
time set forth in subsection (c) below sufficient to enable such holder to maintain its proportionate equity ownership interest in the Shares (on a Fully-Diluted Basis) at the level of such interest immediately prior to such issuance, and determined
as though all Rollover Options had been exercised and the Put Rights or Call Rights had been exercised immediately upon such issuance. 
  
 (b) Any Stockholder electing to exercise its Preemptive Right hereunder shall, to the extent the Company issues both Common Stock and Preferred Stock, be
required to exercise such right as to both the Common Stock and the Preferred Stock in the same proportion as the shares of such classes are to be issued. 
  
 (c) The Company shall give written notice of any such issuance to (i) Charles G. Raymond, acting as agent for each Other Stockholder who, at the time he
became a stockholder of the Company was an employee or director of the Company (such Other Stockholder, a “Management Stockholder”) or by any other Person that may be so designated by a majority-in-interest of the Management
Stockholders (the “Agent”), (ii) each Other Stockholder other than a Management Stockholder and (iii) to the CHP Group (collectively, “Preemptive Rightholders”) setting forth in reasonable detail the proposed terms
and conditions thereof (the “Issuance Notice”) which notice shall be given prior to the date of such issuance and shall offer to the Agent, as agent for each of the Management Stockholders, and to each other Preemptive Rightholder
the opportunity to purchase such Shares at the same price and on the same terms, as provided in the instrument identifying the securities that are proposed to be or were issued by the Company, either from the Company or from the Persons receiving
such Shares. The Agent shall upon receipt of an Issuance Notice promptly notify the Management Stockholders of such notice and terms contained therein. A Management Stockholder, upon providing the Agent with funds in the requisite amount, may
instruct the Agent to exercise its preemptive right by delivery of a written notice to the Agent within 15 days after delivery of the Issuance Notice, which exercise shall be irrevocable; and to the extent that such Management Stockholder shall fail
to exercise such right the Agent shall be entitled, in his absolute discretion, to permit such rights to lapse. The Agent shall consolidate all responses received by him and 

  

 12 

 
shall exercise such right by notice to the Company and delivery of funds provided by the Management Stockholders for such purposes within two days following
such 15 day period. Each other Preemptive Rightholder may exercise such right by notice to the Company and delivery of funds within 10 business days after delivery of the Issuance Notice. The Agent shall have no liability to the Stockholders in
respect of any actions or omissions taken or not taken by it pursuant to this Agreement. 
  
 (d) No Preemptive Rightholder may sell, assign, transfer any participations in or otherwise transfer any of its preemptive rights under this Section 7 except in connection with a transfer of Shares or Rollover Options
in accordance with this Agreement. 
  
 (e) The Preemptive Rights
shall not apply to the following issuances: (i) issuances of the Company’s Shares in consideration for any merger, consolidation or purchase or sale of any business or assets used in the business of the Company or its subsidiaries or for a
transaction that the Board of Directors of the Company deems, in its sole discretion, to be a strategic transaction, so long as the CHP Group and CHI and their affiliates do not buy any stock in the issuance; (ii) issuances in any underwritten
public offering; (iii) issuances where the CHP Group and the holders of at least 50.1% of the Shares then held by the Other Stockholders determine that such issuance should be exempt from the provisions of this Section 7; (iv) issuances to directors
and employees of the Company and any subsidiary thereof other than directors and employees of the CHP Group and CHI; (v) the grant of employee stock options, employee restricted stock or employee stock purchase rights; (vi) sales or issuances of
Shares upon exercise of employee stock options or employee stock purchase rights; (vii) securities distributed or set aside ratably to all holders of Shares on a per share equivalent basis; (viii) issuance of securities upon exercise of any Rollover
Option existing on the date hereof and set forth on Schedule 2 hereto; (ix) issuances of Shares as part of a conversion of all or a portion, from time to time, of the Convertible Notes and (x) issuances of Shares in connection with the exercise of a
put or call pursuant to the Put/Call Agreement. In addition, no Stockholder shall have a Preemptive Right if upon advice of counsel for the Company determines that the offering or sale of Shares pursuant to such Preemptive Rights would require
registration under the Securities Laws. 
  
 (f) Each Management
Stockholder hereby appoints the Agent, including any successor thereto to perform the actions that it is provided to undertake under this Section 7. Each Management Stockholder, by its execution hereof, hereby irrevocably makes, constitutes and
appoints the Agent as its true and lawful agent, with full power of substitution and full power and authority in its name, place and stead, to receive any Issuance Notices and to exercise on behalf and for the benefit of each Management Stockholder
such Management Stockholder’s right of first refusal with respect to any Preemptive Right pursuant to and in accordance with Section 7(b) hereof. The foregoing designation of the Agent shall not obligate any Management Stockholder for the
exercise of its Preemptive Rights without the express consent in each instance of such exercise by the Stockholder given to the Agent on behalf and for the benefit of the Management Stockholder. 
  

 13 

 (g) Each Stockholder shall execute and deliver to the Company or its agent within 15 days after receipt
of a request therefrom such further instruments as the Company or its agent shall reasonably deem necessary to carry out the terms of this Agreement. 
  
 8. Registration Under The Securities Act. 
  
 (a) Right to Piggyback Registrations. 
  
 (i) Right to Piggyback. Whenever the Company proposes to register any of its securities under the Securities Act (whether for itself or any
Stockholder), the Company as applicable shall give prompt written notice to all Stockholders of its intention to effect such a registration (a “Piggyback Registration”). The Company shall include, subject to Section 8(a)(ii), in
such registration the same percentage of each class of each Stockholder’s Shares as the CHP Group and its Permitted Transferees is including in such registration (such shares to be registered, the “Registrable
Securities”), provided that (x) the registration form to be used may be used for the registration of Shares and (y) the Company has received written requests for inclusion therein within twenty days after the Company’s notice.

  
 (ii) Priority. In any registration in which the
Company intends to sell Shares, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without
adversely affecting the marketability of the offering, the Company shall include in such registration (x) first, the securities the Company proposes to sell, (y) second, all other Shares, including CHP Shares, requested to be included in such
registration, pro rata on the basis of the amount of Shares requested to be included by each such requesting Stockholder, up to the amount set forth in Section 8(a)(i). 
  
 (iii) Selection of Underwriters. The Company shall select the investment banker(s) and manager(s) to administer each
Piggyback Registration. 
  
 (b) Holdback Agreements. If
requested by the Company, each Other Stockholder hereby agrees, to the extent the CHP Group and any affiliate of the CHP Group that is also an affiliate of the Company agrees, to not effect any public sale or distribution (including sales pursuant
to Rule 144 other than Rule 144(k)) of equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and the 90-day period beginning on the effective date of
any underwritten registered public offering of equity securities of the Company or securities convertible or exchangeable into or exercisable for equity securities of the Company (except as part of such underwritten registration) in which such Other
Stockholder participates or has the right to participate, unless the underwriters managing the registered public offering otherwise agree (and the CHP Group agrees that the benefit of any waivers received by it shall be shared pro rata by the Other
Stockholders), and each such Other Stockholder will deliver an undertaking to the managing underwriters (if requested) consistent with this covenant, to the extent the CHP Group and any affiliate of the CHP Group that is also an affiliate of the
Company does the same. 
  

 14 

 (c) Indemnification. 
  
 (i) The Company agrees to indemnify, to the extent permitted by law, each Stockholder of Registrable Securities, its
officers and directors and each Person who controls such Stockholder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses resulting from any untrue or alleged untrue statement of material fact
contained in any registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such Stockholder expressly for use therein or by such Stockholder’s failure to deliver a copy of the
registration statement or prospectus or any amendments or supplements thereto, to the extent such delivery is required to be made by such Stockholder. 
  
 (ii) In connection with any registration statement in which an Other Stockholder holding Shares is participating, each such Other Stockholder shall
furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify the Company and each Underwriter, if
any, and their respective directors and officers and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue or alleged untrue statement
of material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, but only to the extent that any information or affidavit so furnished in writing by such Other Stockholder contains such untrue statement or omits a material fact required to be stated therein necessary to make
the statements therein not misleading; provided that the obligation to indemnify shall be individual to each Other Stockholder and shall be limited to the net amount of proceeds received by such Other Stockholder from the sale of Shares pursuant to
such registration statement. 
  
 (iii) Any Person entitled to
indemnification hereunder shall (x) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any Person’s right to
indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (y) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist
with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability
for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). 
  
 (iv) The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of
the indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities. If the indemnification provided under Section 8(c)(i) or 

  

 15 

 
8(c)(ii) of this Agreement (other than as it relates to underwriters) is for any reason unavailable to, or insufficient to hold harmless, an indemnified
party, then each indemnifying party shall contribute to the amount paid or payable to the indemnified party or parties an amount that is proportionate to reflect the relative fault of such indemnifying party on the one hand and the indemnified party
or parties on the other. 
  
 (d) Participation in Underwritten
Registrations. No Person may participate in any registration hereunder which is underwritten unless such Person (i) agrees to sell such Person’s securities on the basis provided in any customary underwriting arrangements approved by the
Person or Persons entitled hereunder to approve such arrangements (which shall be on the same terms for all Stockholders of Shares participating in such registration) and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents customarily required under the terms of such underwriting arrangements. 
  
 (e) (i) Except as set forth in clause (ii) below, the right of any Person to request registration or inclusion in any registration pursuant to Section 8
shall terminate on the earlier of (A) such date after the closing of the first Company-initiated registered public offering of Common Stock of the Company as all shares of Registrable Securities held or entitled to be held upon conversion by such
Person may immediately be sold under Rule 144 during any ninety (90) day period, and (B) two (2) years after the closing of the first Company-initiated registered public offering. 
  
 (ii) The provisions of clause (i) above shall not apply to any Person who owns more than one percent (1%) of the
Company’s outstanding Common Stock until such time as such Person owns less than one percent (1%) of the outstanding Common Stock of the Company. 
  

	9.	Termination. 

  
 (a) Termination as to Stockholder. This Agreement shall terminate as to any Stockholder at such time as the Stockholder shall hold no Securities or
other options to purchase Shares, but if such Stockholder shall have transferred such Securities to a Permitted Transferee or third party, this Agreement shall continue to apply to such Permitted Transferee or third party as long as such Permitted
Transferee or third party holds such Securities; provided, however, that the provisions of this Agreement shall continue in effect for the purpose of enforcing all obligations and undertakings having theretofore become operative.

  
 (b) Termination of Agreement. This Agreement shall
remain in effect until the earliest to occur of (i) the Agreement being terminated as to all Securities and Stockholders pursuant to Section 9(a), (ii) the consent of the CHP Group and the holders of at least 50.1% of the Shares then held by the
Other Stockholders that this Agreement be terminated and (iii) upon the consummation of an Initial Public Offering; provided, however, that Section 8 hereof shall survive the termination of this Agreement pursuant to clause (iii) above
until the earlier to occur of clauses (i) or (ii) above, or pursuant to Section 8(e) (except that Section 8(d) shall not terminate). “Initial Public Offering” shall mean one or more public offerings of any Shares of the Company, the
aggregate proceeds to the Company of which are at least $50 million, pursuant to a registration statement filed with, and declared effective by, the Securities and Exchange 

  

 16 

 
Commission, upon the consummation of which the Shares are listed on a United States securities exchange or included in the NASDAQ National Market, other than
a registration on Form S-4 or S-8 (or its equivalent). 
  
 10.
Further Action. Each party hereto agrees to execute and deliver any instrument and take any action that may reasonably be requested by any other party for the purpose of effectuating the provisions of this Agreement. 
  
 11. Assignment. Except as otherwise provided in this Section 11 or in
Section 5 hereof, no right under this Agreement shall be assignable and any attempted assignment in violation of this provision shall be void. The Company shall have the right to assign its rights and obligations hereunder to any successor entity,
whereupon references herein to the Company shall be deemed to be to such successor. This Agreement, and the rights and obligations of the parties hereunder, shall be binding upon and inure to the benefit of any and all transferees of the Securities
subject hereto (except where expressly provided herein that such transferred Securities are free of all rights and restrictions imposed hereby), the successors, permitted assigns, and, if a transferee is an individual, such individual’s
personal representatives and all other legal representatives, in whatsoever capacity, by operation of law or otherwise, of the parties hereto, in each case with the same force and effect as if the foregoing entities (or Persons, if applicable) were
named herein as parties hereto. Any and all transferees of the Securities shall be subject to and fully bound by this Agreement with the same effect as if they were a party hereto and shall execute and deliver to the Company an Instrument of
Accession in the form of Exhibit A hereto, and references herein to Shares, Restricted Shares, Rollover Options, Surviving Corporation Common Stock or Securities held or owned by any Stockholder shall be deemed to include Shares, Restricted
Shares, Rollover Options, Surviving Corporation Stock or Securities held or owned by any such transferees. A Permitted Transferee of a Stockholder shall be deemed to be another Stockholder for the purposes of this Agreement upon execution of such
Instrument of Accession. 
  
 12. Specific Performance. The
parties hereto recognize that irreparable damage will result if this Agreement shall not be specifically enforced. If any dispute arises concerning any Shares hereunder, the parties hereto agree that an injunction may be issued to compel specific
performance of any term of this Agreement pending determination of such controversy and that no bond or other security may be required in connection therewith. If any dispute arises concerning the right or obligation of the Stockholders or the
Company to purchase or sell any Shares subject hereto, such right or obligation shall be enforceable by a decree of specific performance. Such remedies shall, however, not be exclusive and shall be in addition to any other remedy which the parties
may have. 
  
 13. Miscellaneous Provisions. 
  
 (a) Certain Definitions. For purposes of this Agreement,
“Person” means any individual, firm, partnership, corporation, trust, joint venture, limited liability company, association, joint stock company, unincorporated organization or any other entity or organization, including a
governmental entity or any department, agency or political subdivision thereof. 
  

 17 

 (b) Applicable Law. This Agreement and the rights and obligations of the parties hereunder shall
be governed by, and construed and interpreted in accordance with, the internal laws of the State of Delaware. Each of the parties hereto hereby irrevocably submits to the exclusive jurisdiction of any Federal court sitting in the state of Delaware,
over any suit, action or proceeding arising out of or relating to this agreement. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted or not prohibited by law, any objection which it may now or hereafter have to the
laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum. Each of the parties hereto hereby
irrevocably consents to the service of process in any suit, action or proceeding by sending the same by certified mail, return receipt requested or by overnight courier service, to the address of such party set forth in Section 13(c) or in the
records of the Company. EACH PARTY HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY ACTION BROUGHT HEREUNDER OR ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY. 
  
 (c) Notices. Any notice or other communication required or which may be given hereunder shall be in writing and shall
be delivered personally, telecopied with confirmed receipt, sent by express mail, postage prepaid, or sent by a national next-day delivery service to the parties at the addresses set forth below their names in Schedule 1 hereto or at such other
addresses as shall be specified by the parties by like notice, and shall be deemed given when so delivered personally or telecopied, or, if by national express mail or other next-day delivery service, on the Business Day after delivery to such
service. “Business Day” as used in this Agreement, shall mean any day other than a Saturday or Sunday or any other day on which commercial banks are required or authorized by law or regulation to be closed in New York, New York. Notices to
the Company shall be sent to: 
  

			
	 c/o Castle Harlan, Inc.

	 150 East 58th Street

	 37th Floor

	 New York, New York 10155

	 Attention:
	 	Marcel Fournier
	 	 	Howard Weiss
	 Telecopier No.: 212-207-8042

  
 (d) Entire
Agreement; Amendments and Waivers. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof. The failure of any party to seek redress for the violation of or to insist upon the strict
performance of any term of this Agreement shall not constitute a waiver of such term and such party shall be entitled to enforce such term without regard to such forbearance. This Agreement may be amended, each party hereto may take any action
herein prohibited or omit to take action herein required to be performed by it, and any breach of or compliance with any covenant, agreement, warranty or representation may be waived, only by the written consent or written waiver of (i) the CHP
Group and (ii) the holders of at least 50.1% of the Shares then held by the Other Stockholders and then such consent or waiver shall be effective only in the specific instance and for the specific purpose for which it is given. 
  

 18 

 (e) Severability. If any term, provision, covenant or restriction of this Agreement, or any part
thereof, is held by a court of competent jurisdiction or any foreign, federal, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy
for any reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
  
 (f) Improper Transfer. Any attempt to sell, assign, transfer, grant a
participation in, pledge or otherwise dispose of, any Shares not in compliance with this Agreement shall be null and void and the Company shall not give any effect in the Company’s stock records to such attempted sale, assignment, transfer,
grant of a participation in, pledge or other disposition. 
  
 (g)
Recapitalizations, Stock Dividends, Stock Splits, Etc. Affecting the Shares of Capital Stock. Whenever this Agreement refers to the numbers and percentages of Shares held by the Stockholders on the Closing Date, such figures shall be
appropriately adjusted to reflect any stock exchange, stock split, stock dividend or other reclassification, consolidation, reorganization or similar transaction involving the Shares occurring after the Closing Date. 
  
 (h) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 (i) Payments. Payment by the Company or any Stockholder, as the case may be, shall be by wire transfer in immediately available funds and made at
the closing as specified in this Agreement. 
  
 (j)
Headings. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretations of the Agreement. 
  

(k) Attorney’s Fees. If a legal action or other proceeding is brought for enforcement of this Agreement because of an alleged dispute,
breach, default, or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party shall be entitled to recover reasonable attorney’s fees and costs incurred, both before and after judgment, in
addition to any other relief to which they may be entitled. 
  
 (l) Withholding Taxes. Notwithstanding any other provision of this Agreement, each Stockholder hereby authorizes the Company to withhold and to pay over, or otherwise pay, any withholding or other taxes payable by the Company or any
of its affiliates (pursuant to the Internal Revenue Code of 1986, as amended (the “Code”) or any provision of United States federal, state or local or non-U.S. tax law) with respect to such Stockholder or as a result of such
Stockholder’s participation in the Company. 
  
 (m)
Redemptions. The Company agrees that it shall not redeem any Shares of the Company other than on a pro rata basis with all other shares of the same class, except that the Company may redeem Shares of employees of the Company and its
subsidiaries on a non-pro rata basis. 
  

 19 

 (n) Restricted Stock. For purposes of clarification, the rights granted under this Agreement shall
only apply to a Restricted Stockholder with respect to such Restricted Stockholder’s Shares that are “vested” pursuant to the Restricted Stock Agreement. 
  
 [Remainder of Page Intentionally Left Blank.] 
  

 20 

 IN WITNESS WHEREOF, the undersigned have caused this Stockholders Agreement to be signed as of the date
first above written. 
  

			
	COMPANY:
	
	H-LINES HOLDING CORP.
		
	 By:
	 	 /s/ Charles G. Raymond

	 Name:
	 	 Charles G. Raymond

	 Title:
	 	 President and Chief Executive Officer

  
 [Signature Page
to Stockholders Agreement] 

 [CONTINUATION OF SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 
  

			
	STOCKHOLDER:
	
	 CASTLE HARLAN PARTNERS IV, L.P.

		
	 By:
	 	 Castle Harlan, Inc., its Investment
 Manager

		
	 By:
	 	 /s/ Howard Weiss

	 Name:
	 	 Howard Weiss

	 Title:
	 	 

  
 [Signature Page
to Stockholders Agreement] 

	

 [CONTINUATION OF SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 
  

			
	STOCKHOLDER:
	 CASTLE HARLAN AFFILIATES IV-QP, L.P.

		
	 BY:
	 	CASTLE HARLAN, INC.
	
	/s/ Howard Weiss
	 Print Name: Howard Weiss

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

			
	 WENDER ASSOCIATES IV

		
	 By:
	 	 /s/ Justin B. Wender

	 Name:
	 	 Justin B. Wender

	 Title:
	 	 

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

			
	 MZ ASSOCIATES, LLC

		
	 By:
	 	 /s/ MZ Associates, LLC

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

			
	 WMP IRREVOCABLE TRUST

		
	 By:
	 	 /s/ Trustee

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Marcel Fournier

	
 Marcel Fournier

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Benjamin S. Sebel

	
 Benjamin S. Sebel

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

			
	 MARLIN TRUST

		
	 By:
	 	 /s/ Trustee

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

			
	 BERMAN TRUST

		
	 By:
	 	 /s/ Trustee

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

			
	 GRUMAN TRUST

		
	 By:
	 	 /s/ Trustee

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Mark R. Blankenship

 Mark R. Blankenship

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Michael T. Bohlman

 Michael T. Bohlman

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Patricia A. Bowman

 Patricia A. Bowman

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Charles William Brown III

 Charles William Brown III

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Marvin Buchanan

 Marvin Buchanan

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Robert C. Burlando

 Robert C. Burlando

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Tricia A. Covais

 Tricia A. Covais

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Daniel R. Downes

	
 Daniel R. Downes

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Scott W. Fernandez

	
 Scott W. Fernandez

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ R. Kevin Gill

	
 R. Kevin Gill

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Sabrina M. Jackson

	
 Sabrina M. Jackson

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ John V. Keenan

	
 John V. Keenan

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Ricky A. Kessler

	
 Ricky A. Kessler

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Mar F. Labrador

	
 Mar F. Labrador

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Dennis R. McCarthy

	
 Dennis R. McCarthy

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Kathleen M. Mullen

	
 Kathleen M. Mullen

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Neil Perlmutter

	
 Neil Perlmutter

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Kenneth L. Privratsky

	
 Kenneth L. Privratsky

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ John J. Quan

	
 John J. Quan

  
 [Signature Page
to Stockholders Agreement] 
  
  

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Charles Raymond

	
 Charles Raymond

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Joe Raymond

	
 Joe Raymond

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Sam Raymond

	
 Sam Raymond

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Karen H. Richards

	
 Karen H. Richards

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Jose G. Rodriguez

	
 Jose G. Rodriguez

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Richard F. Rodriguez

	
 Richard F. Rodriguez

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Gabriel M. Serra

	
 Gabriel M. Serra

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Brian W. Taylor

	
 Brian W. Taylor

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Philip A. Woare

	
 Philip A. Woare

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ M. Mark Urbania

	
 M. Mark Urbania

  
 [Signature Page
to Stockholders Agreement] 

 [Continuation of Signature Page to Stockholders Agreement] 
  

	
	 /s/ Robert S. Zuckerman

	
 Robert S. Zuckerman

  
 [Signature Page
to Stockholders Agreement] 

 EXHIBIT A 
  

INSTRUMENT OF ACCESSION 
  
 The undersigned,
                            , as a condition precedent to becoming the owner or holder of record of
(i)              (            ) shares of common stock, par value $0.01 per share, of H-Lines Holding Corp., a
Delaware corporation (the “Company”) and              (            ) shares of preferred stock,
par value $0.01 per share, of the Company and/or (ii)              (            ), Rollover Options, and/or (iii)
             (            ) shares of common stock of Horizon Lines Holding Corp., hereby agrees to become a
Stockholder, party to and bound by that certain Stockholders Agreement dated as of July 7, 2004, by and among the Company and the stockholders of the Company. This Instrument of Accession shall take effect and shall become an integral part of the
said Stockholders Agreement immediately upon execution and delivery to the Company of this Instrument. 
  
 IN WITNESS WHEREOF, the undersigned has caused this INSTRUMENT OF ACCESSION to be signed as of the date below written. 
  

			
	 Signature:
	 	  

	 Address:
	 	  

	  

	  

	 Date:
	 	  

	 Accepted:
	 	  

	 By:
	 	  

	 Date:
	 	  

  
  

 EXHIBIT B 
  

CONSENT AND AGREEMENT OF SPOUSE 
  
 I,                     , am the spouse of
                     (the “Holder”), who is a stockholder and/or a holder of Restricted Shares and/or holder of options of
Horizon Lines Holding Corp., a Delaware corporation (“Horizon”), and/or H-Lines Holding Corp., a Delaware corporation (“H-Lines”; and together with Horizon, the “Companies”). I acknowledge that the
Holder is a party to (1) that certain Stockholders Agreement, dated July 7, 2004, by and among H-Lines, Castle Harlan Partners IV, L.P. (“CHP IV”), and the other parties thereto, as the same may be amended, restated, amended and
restated, supplemented or otherwise modified from time to time (the “Stockholders Agreement”); (2) to one or more voting trust agreements, each dated July 7, 2004, by and among (a) one or more of the Companies, (b) John K. Castle,
as voting trustee, and (c) the securityholders of one or more of the Companies listed therein, as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time (collectively, the “Voting Trust
Agreements); [(3) that certain Put/Call Agreement, dated as of July 7, 2004, by and among the H-Lines and the optionholders listed therein, as the same may be amended, restated, amended and restated, supplemented or otherwise modified
from time to time (the “Put/Call Agreement”);]1[and (4) to that certain Restricted Stock Agreement, dated as of July 7, 2004, by and between H-Lines and the Holder, as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to
time (the “Restricted Stock Agreement”2][and together with the Stockholders Agreement, the Voting Trust Agreements [and the Put/Call Agreement], the “Equity-Related Agreements”)]. I further acknowledge that I have read
the Equity-Related Agreements. I consent to, agree to, approve and ratify each and every one of the terms and provisions of the Equity-Related Agreements and acknowledge that I may not acquire any shares of capital stock or other securities of any
of the Companies or any of their respective subsidiaries, whether by gift, purchase or otherwise and whether by will, intestate succession, operation of law or decree, order or injunction of any court, except in strict compliance with the terms and
conditions of the Equity-Related Agreements and any other documents described therein. I further agree to provide all notices and information which may be required of me in the Equity-Related Agreements in the time and manner set forth therein.

  
 Dated as of
            , 20     
  

			
	  

	 Print Name:
	 	  

	 Address:
	 	  

	 	 	  

	 	 	  

	1	Applicable if Holder is a holder of an option issued by Horizon Lines Holding Corp. 

	2	Applicable if Holder is a party to such agreement.

 EXHIBIT C 
  

IRREVOCABLE APPOINTMENT OF PROXY 
  
 The undersigned stockholder (the “Stockholder”) of H-LINES HOLDING CORP. (“Holdings”) has executed a Stockholders
Agreement (the “Stockholders Agreement”), dated July 7, 2004, among Holdings, Castle Harlan Partners IV, L.P. (“CHP IV,” and together with related accounts or funds managed by Castle Harlan, Inc.
(“CHI”) or by an affiliate of CHI, referred to herein collectively as the “CHP Group”), and such other parties signatory thereto (the “Other Stockholders”). 
  
 Section 6(f) of the Stockholders Agreement grants a right to each of CHP IV
and the Permitted CHP Transferees (as defined in the Stockholders Agreement), the right to require all stockholders to transfer their Shares (as defined in the Stockholders Agreement) pursuant to any transaction or a series of related transactions
if such transactions would result in a transfer of more than 50% of the Shares owned by CHP IV and all Permitted CHP Transferees (such transactions, including, by way of merger or a sale of all or substantially all of the assets of Holdings, a
“Drag-Along Transaction”). In order to cause H-Lines to effectuate any such Drag-Along Transaction and as security for the Stockholder’s obligations under the Stockholders Agreement, the Stockholder hereby irrevocably
constitutes and appoints CHP IV as the Stockholder’s attorney and proxy in accordance with the provisions of Section 212(e) of the Delaware General Corporation Law (“DGCL”), with full power of substitution and resubstitution:
to cause all of the shares of common stock, par value $0.01 per share, of Holdings (the “Common Stock”) and preferred stock, par value $0.01 per share, of Holdings (the “Preferred Stock”) that the Stockholder is or
becomes entitled to vote (the “Shares”) if personally present to be counted as present at any meeting of holders of Holdings Common Stock or Preferred Stock (a) in favor of and to adopt such Drag-Along Transaction and (b) against
any action that is intended, or which could reasonably be expected, to impede, interfere with, delay, postpone or materially adversely affect the Drag-Along Transaction; and to vote the Stockholder’s Shares at any such meeting, however called,
or execute consents in respect of the Stockholder’s Shares, as provided above. 
  
 THIS APPOINTMENT OF PROXY AND POWER OF ATTORNEY IS IRREVOCABLE AND COUPLED WITH AN INTEREST WITHIN THE MEANING OF SECTION 212(e) OF THE DGCL. 
  
 The Stockholder hereby revokes all other proxies and powers of attorney with respect to the Stockholder’s Shares that
the Stockholder may have heretofore appointed or granted, and no subsequent proxy or power of attorney shall be granted (and if granted, shall not be effective) by the Stockholder with respect to such proxy or power of attorney, other than for the
sole purpose of voting Shares as contemplated by the Stockholders Agreement. 
  
 The power and authority hereby conferred shall not be terminated by any act of such Stockholder or by operation of law, by the dissolution of the Stockholder (if such Stockholder is other than a natural person), by
lack of appropriate power or authority, or by the occurrence of any other event or events and shall be binding upon all his representatives, executors, successors 

 
and/or assigns. If after the execution of this Agreement a Stockholder shall dissolve (if such Stockholder is other than a natural person), cease to have
appropriate power or authority, or if any other such event or events shall occur, CHP IV is nevertheless authorized and directed to vote the Shares in accordance with the terms of this Agreement as if such dissolution, if applicable, lack of
appropriate power or authority or other event or events had not occurred and regardless of notice thereof. 
  
 Schedule 1 attached to this letter agreement sets forth the correct total number of the Shares. 
  
 The appointment made hereby shall be effective until the termination of the
Stockholders Agreement in accordance with its terms. 
  

			
	STOCKHOLDER:
	
	

	 Print Name:
	 	  

	 Address:
  
	 	  

	 	 	  

  

  

  
  

 Exhibit C-2 

 Schedule 1 
  

					
	 Name and Address

	 	 No. of Shares of
 Common Stock

	 	 No. of Shares of
 Preferred Stock

  

 Schedule 1-1 

 Schedule 2 
  

							
	 Name and Address

	 	 Aggregate Number of
 Shares of Horizon
 Lines Holding Corp.
 for which Options are
 Exercisable

	 	 No. of Shares of
 Common Stock
 Upon Exercise of
 Call Right

	 	 No. of Shares of
 Preferred Stock
 Upon Exercise of
 Call Right

  

 Schedule 2-1

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