Document:

exv10w3

 

Exhibit 10.3

June 26, 2006

Tamra L. Koshewa

[Address on file with the Company]

Dear Tamra:

We are pleased to extend this offer of employment to you for the position of Vice President Finance
& Corporate Controller; reporting to Chris Black, Senior Vice President & CFO. Below is an outline
of the compensation and benefits package that the Company is offering for your consideration:

     Position: Vice President Finance & Corporate Controller

     Departmental Responsibilities: Manage the accounting, financial reporting and
financial management operations of the Company.

     Salary Grade / Base Annual Salary: Grade 17 / $210,000. Your salary will be paid on
a semi-monthly basis, in accordance with ACL’s payroll practice and procedures for salaried employees. Your
salary will be subject to change from time to time based upon your job performance.

     Annual Incentive Plan Eligibility: Target AIP bonus opportunity of up to 50% of
actual base earnings. AIP bonus eligibility is determined by achievement of overall company
financial performance targets, departmental goals and objects and individual performance measures
which may be established by ACL from time to time. All AIP bonus payments are subject to approval
by the Compensation Committee of the Board of Directors and will be calculated and disbursed
following the release of the Company’s audited financial results for the given calendar year
(generally occurring each February). Your 2006 incentive will be a minimum of $70,000.

     Long-Term Incentive Eligibility: Target LTI opportunity equal to approximately 75% of
the value of your base annual salary. All LTI equity grants are subject to the terms of ACL’s
stock ownership plan(s), must be approved by the Board of Directors, and are generally issued
during the first calendar quarter of each year. Components of the equity grants include stock
options, restricted stock units and performance restricted units.

     Also, ACL will made a one-time equity grant equal to $200,000 in value to Tamra L. Koshewa,
subject to the approval by Resolution of its Compensation Committee. The grant will be shares of
American Commercial Lines Inc. common stock (“Restricted Stock Units”) for Officers and Directors,
adopted by the Board on January 10, 2005. The actual number of shares will be determined based on
the market close price on the date it is approved by the Compensation Committee. This equity grant
will vest 1/3 each year from the date the stock is initially provided to you.

     Employee Benefits: As a salaried employee you will eligible to participate in
company-sponsored employee benefit programs that include, but are not limited to ACL’s group
medical, dental, vision, short- term and long-term disability, life insurance and retirement
savings plans. Details of the benefit programs are contained in plan documents and summary plan
descriptions that will be provided to you once you begin employment with the Company.

     Vacation: You will be eligible for Four (4) weeks of vacation each calendar year.
Vacation accrual and scheduling are subject to ACL’s salaried vacation policy.

     Pre-employment Screening: This employment offer is contingent upon successful
completion of a background investigation which may include passing a company provided substance
abuse screen.

     The foregoing summarizes the terms and conditions applicable to the employment position being
offered to you. However, should you accept this position; you will be subject to the employment
policies and procedures generally applicable to salaried employees of ACL. This letter is provided
for informational purposes only and does not constitute an agreement or contract.

     Tamra, ACL is very excited about offering you this opportunity. We believe you will make
significant contributions toward our future success. We would appreciate your consideration and
acceptance of this offer by Wednesday, June 28, 2006. Please indicate your acceptance by signing
in the space provided below and return via fax to 812-288-0413 or email to
nick.fletcher@acbl.net.

     Regards,

/s/ Nick Fletcher

Nick Fletcher

Senior Vice President, Human Resources

812-288-0263

     By signing below, I agree too accept employment with ACL under the terms outlined herein. I
acknowledge and agree that my employment with ACL does not breach any agreements with any other
employer and I further agree to maintain the secrecy of, and not to use in any way, any
confidential or proprietary information or trade secrets belonging to any other employer in the
performance of my duties for ACL. I understand and agree that this letter is provided for
information purposes only and does not guarantee employment for any definite duration. I
understand that I shall have the right to terminate my employment with ACL at any time for any
reason by providing ACL with reasonable notice and the Company shall have the same right to
discontinue my employment at any time for any reason.

	 	 	 	 	 	 	 	 	 
	 

	 	/s/ Tamra L. Koshewa
 

Tamra L. Koshewa
	 	 
	 	June 28, 2006
 

Dateexv10w4

 

EXHIBIT 10.4

March 17, 2008

Thomas R. Pilholski

[Address on file with the Company]

Dear Mr. Pilholski:

     This will confirm my offer of employment as Senior Vice President and Chief Financial Officer
of American Commercial Lines Inc. (“ACL”). The following are the proposed terms and conditions of
your employment as Senior Vice President and Chief Financial Officer:

     Title. Senior Vice President and Chief Financial Officer of ACL, based in
Jeffersonville, Indiana.

     Responsibilities. The duties and obligations reasonably associated with the position
of Senior Vice President and Chief Financial Officer as shall be specified and designated from time
to time by the Board of Directors, and you shall report directly to and shall be subject to the
authority of the Chief Executive Officer of ACL.

     Base Annual Salary. At such time as you officially assume the position of Senior Vice
President and Chief Financial Officer, your annual base salary will be $325,000 subject to annual
increases, if any, at the discretion of the Compensation Committee of the Board of Directors (the
“Committee”).

     Annual Bonus. You will be eligible to receive an annual target bonus of 65% of your
base annual salary based on achievement of ACL performance targets established by the Committee.

     Equity. ACL will grant to you options to purchase 52,376 shares of ACL’s common stock
with an exercise price equal to the closing price of ACL’s common stock on the date of grant (which
will be your first day of employment) and options to purchase 25,253 shares of ACL’s common stock
with an exercise price equal to 125% of FMV on grant date. Such options will become 100% vested
and exercisable on the third anniversary of the date hereof, with no incremental vesting prior to
such date, except as provided in ACL’s form of stock option award agreement attached hereto as
Appendix A, and will be subject to the other terms and conditions set forth in ACL’s form of stock
option award agreement. You will be eligible to receive future equity grants at the discretion of
the Committee.

.4 Reimbursement of Legal Fees. ACL shall reimburse you for up to $5,000 of the fees and
expenses of your counsel in connection with the preparation, execution and delivery of this letter
agreement and in connection with sale or purchase of a residence in connection with your
relocation.

     Reimbursement of Relocation Fees. In accordance with ACL’s Relocation Policy, ACL
shall reimburse you for the customary and reasonable relocation expenses that you and your family
incur in moving your residence to the Jeffersonville, Indiana area.

     Vacation. Four weeks per annum.

.A Severance. ACL will provide (12) twelve months severance, paid semi-monthly less
applicable federal and state withholdings, if your employment is involuntarily terminated without
cause or if you terminate your employment for “good reason”. No severance pay will be granted for
separations that are the result of voluntary termination, discharge for cause, death, retirement or
permanent disability. The Annual Bonus will be prorated and paid in one lump sum, not to exceed
100% of payout, in the year of termination (based on company performance achievement at that time)
if termination is without cause or for good reason. All payments provided to you under this
section are contingent on your executing, and not revoking, ACL’s form of general release and
waiver, substantially in the form of Appendix B attached hereto, within 30 days of the date of your
termination of employment. Your

 

 

first payment of severance following the expiration of the
revocation period will be cumulative of all severance payments you would have received following
your termination of employment if there were not a requirement to execute and not revoke the
general release. For purposes of this letter agreement, “good reason” shall mean (a) a material
diminution in your authority, duties or responsibilities, (b) a material diminution in your base
salary or bonus opportunity; (c) a material breach by ACL of any term of this letter agreement; or
(d) a change in your office location to a point more than fifty (50) miles from Jeffersonville,
Indiana, provided, however, that in all cases, prior to your termination for “good reason,” you must give ACL
written notice describing the events constituting “good reason” within 90 days of the initial
occurrence of such events and ACL must be given 45 days to cure such events.

     Cause. For purposes of this letter agreement and any equity award agreements, “cause”
shall mean, unless otherwise determined by the Committee, (i) the conviction of you for committing,
or entering a plea of nolo contendere by you with respect to, a felony under federal or state law
or a crime involving moral turpitude; (ii) the commission of an act of personal dishonesty or fraud involving personal profit in connection with your employment by ACL;
(iii) the willful misconduct, gross negligence or deliberate failure on the part of you to perform
your duties as a service provider with respect to ACL in any material respect; or (iv) the failure
of you to comply with ACL policies or agreements with ACL, in any material respect.

.5 Section 409A. In the event that any compensation with respect to your termination is
“deferred compensation” within the meaning of Section 409A of the Internal Revenue Code (the
“Code”) and the regulations thereunder (“Section 409A”), the stock of ACL or any affiliate is
publicly traded on an established securities market or otherwise, and you are determined to be a
“specified employee,” as defined in Section 409A(a)(2)(B)(i) of the Code, payment of such
compensation shall be delayed as required by Section 409A. Such delay shall last six (6) months
from the date of your termination, except in the event of your death. Within thirty (30) days
following the end of such six-month period, or, if earlier, your death, ACL will make a catch-up
payment to you equal to the total amount of such payments that would have been made during the
six-month period but for this section. Wherever payments under this letter agreement are to be
made in installments, each such installment shall be deemed to be a separate payment for purposes
of Section 409A.

     Non-Competition/Non-Solicitation Provisions. In consideration of the terms and
conditions set forth herein, you hereby agree to the terms and conditions set forth in Appendix C
to this letter agreement.

     Committee Approval and Board Appointment. The terms and conditions of this letter
agreement are subject to the approval of the Committee. Your appointment to the position of Senior
Vice President and Chief Financial Officer is subject to the approval of the Board of Directors.

     Tom, ACL is very excited about offering you the opportunity for employment as Senior Vice
President and Chief Financial Officer. We believe you will make significant contributions toward
our future success.

     Please indicate your acceptance of the terms and conditions of this letter agreement,
including the attached appendixes, by signing in the space provided below and returning directly to
me.

     Regards,

     /s/ Michael P. Ryan

     Michael P. Ryan, President and Chief Executive Officer

I accept the terms and conditions of this letter agreement.

  /s/ Thomas R. Pilholski                    

Thomas R. Pilholski

Date: March 18, 2008

 

 

APPENDIX A

AMERICAN COMMERCIAL LINES INC.

STOCK OPTION AGREEMENT

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

W I T N E S S E T H:

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

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

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

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

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

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

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

          (b) to the extent the Option is vested on the date of such termination, the date that is one
(1) day following the date that the Optionee’s employment with the Company, or any Subsidiary or
Affiliate, is terminated for Cause, as defined in Section 5(f);

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

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

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

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

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

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

          (b) Notwithstanding the vesting schedule contained in the Award Notice, in the event
Optionee’s employment is (i) involuntarily terminated without cause or (ii) Optionee terminates
employment for “Good Reason”, the Optionee shall become 100% vested in the Option.

 

 

          (c) For purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of
the following events, each of which shall be determined independently of the others: (i) any
“Person” (as hereinafter defined), other than a holder of at least 10% of the outstanding voting
power of the Company as of the date of this Agreement, becomes a “beneficial owner” (as such term
is used in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of a majority of the stock of the Company entitled to vote in the election of
directors of the Company; (ii) individuals who are Continuing Directors of the Company (as
hereinafter defined) cease to constitute a majority of the members of the Board; (iii) stockholders
of the Company adopt and consummate a plan of complete or substantial liquidation or an agreement
providing for the distribution of all or substantially all of the assets of the Company; (iv) the
Company is a party to a merger, consolidation, other form of business combination or a sale of all
or substantially all of its assets, with an unaffiliated third party, unless the business of the
Company following consummation of such merger, consolidation or other business combination is
continued following any such transaction by a resulting entity (which may be, but need not be, the
Company) and the stockholders of the Company immediately prior to such transaction hold, directly
or indirectly, at least a majority of the voting power of the resulting entity; provided, however,
that a merger or consolidation effected to implement a recapitalization of the Company (or similar
transaction) shall not constitute a Change in Control; (v) there is a Change in Control of the
Company of a nature that is reported in response to item 5.01 of Current Report on Form 8-K or any
similar item, schedule or form under the Exchange Act, as in effect at the time of the change,
whether or not the Company is then subject to such reporting requirements; provided, however, that
for purposes of this Agreement a Change in Control shall not be deemed to occur if the Person or
Persons deemed to have acquired control is a holder of at least 10% of the outstanding voting power
of the Company as of the date of this Agreement; or (vi) the Company consummates a transaction
which constitutes a “Rule 13e-3 transaction” (as such term is defined in Rule 13e-3 of the Exchange
Act) prior to the termination or expiration of this Agreement.

          (d) In the event of a Rule 13e-3 transaction, then effective coincident with the consummation
of such Rule 13e-3 transaction, all non-vested Options issued hereunder shall immediately vest and
be exercisable by Optionee notwithstanding the vesting schedule set forth in the Award Notice;
provided, however, that notwithstanding the foregoing, in connection with the consummation of such
Rule 13e-3 transaction, all such non-vested Options then held by the Optionee shall be deemed to
vest and become exercisable at such time in order to permit Optionee to participate in such
transaction.

          (e) Notwithstanding the vesting schedule contained in the Award Notice, in the event of a
termination of employment due to death or due to Disability, then the Optionee shall become 100%
vested in the Option as of the date of such termination.

          (f) For purposes of this Agreement:

	 	(i)	 	“Continuing Directors” shall mean the members of the Board on the Grant Date, provided that any person
becoming a member of the Board subsequent to such date whose election or nomination for election was
supported by at least a majority of the directors who then comprised the Continuing Directors shall be
considered to be a Continuing Director.
	 
	 	(ii)	 	“Person” is used as such term is used in Sections 13(d) and 14(d) of the Exchange Act.
	 
	 	(iii)	 	“Good Reason” shall mean (a) a material diminution in Optionee’s authority, duties or responsibilities, (b) a
material diminution in Optionee’s base salary or bonus opportunity; (c) a material breach by the Company
of any term of any employment agreement with Optionee; or (d) a change in Optionee’s office location to a
point more than fifty (50) miles from Optionee’s office location on the Grant Date, provided, however, that
in all cases, prior to Optionee’s termination for “Good Reason,” Optionee must give the Company written
notice describing the events constituting “Good Reason” within 90 days of the initial occurrence of such
events and the Company must be given 45 days to cure such events.
	 
	 	(iii)	 	“Cause” shall have the meaning set forth in the employment agreement, if any, between the Company and
the Optionee, or if no such employment agreement exists, then such term shall have the meaning set forth in
the Plan.

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

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

          8. Method of Exercising Options.

 

 

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

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

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

          (d) The Optionee agrees that no later than the date as of which an amount first becomes
includible in his gross income for federal income tax purposes with respect to the Option, the
Optionee shall pay to the Company, or make arrangements satisfactory to the Company regarding the
payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld
with respect to such amount. Withholding obligations may be settled with Common Stock, including
Common Stock that is acquired upon exercise of the Option, having an aggregate Fair Market Value
not in excess of the amount determined by applying the minimum statutory withholding rate. The
obligations of the Company under this Agreement and the Plan shall be conditional on such payment
or arrangements, and the Company, its Affiliates and Subsidiaries shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment otherwise due to the Optionee.

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

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

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

 

 

          12. Limitations. The terms and conditions of this Agreement and the rights of the
Optionee in connection with any Common Stock received upon the Optionee’s exercise of the Option
are subject to the Company’s Executive Officer Stock Ownership Guidelines. Nothing contained in
this Agreement shall be construed as conferring upon the Optionee the right to continue as an
employee, or shall affect the right of the Company, in its sole discretion, to terminate the
Optionee’s employment at any time, with or without cause.

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

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

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

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

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

 

 

APPENDIX B

FORM OF GENERAL RELEASE AND WAIVER

 

 

APPENDIX C

1. Noncompetition; Nonsolicitation; Confidential Information, etc. Thomas R. Pilholski
(the “Executive”) hereby acknowledges that, during and solely as a result of Executive’s
employment by American Commercial Lines Inc. (or “ACL”), the Executive will have access to
confidential information and business and professional contacts. In consideration therefor, the
Executive hereby agrees to be bound by and acknowledges the reasonableness of the following
covenants, which are specifically relied upon by ACL in entering into the letter agreement.
Executive acknowledges and agrees that each of the individual provisions of this Appendix C
constitutes a separate and distinct obligation of the Executive to ACL, individually enforceable
against the Executive.

               1.1 Covenant Not to Compete. For a period of 12 months following the termination of
the Executive’s employment by ACL, the Executive shall not, without the consent of the Board of
Directors of ACL, in any form or any manner, directly or indirectly, on the Executive’s own behalf
or in combination with others, become engaged in (as an individual, partner, stockholder, director,
officer, principal, agent, independent contractor, employee, trustee, lender of money or in any
other relation or capacity whatsoever, except as a holder of securities of a corporation whose
securities are publicly traded and which is subject to the reporting requirements of the Securities
Exchange Act of 1934, as amended, and then only to the extent of owning not more than two percent
(2%) of the issued and outstanding securities of such corporation or other entity) or provide
services to any business which renders services or sells products, or proposes to render services
or sell products, that compete with the Business of ACL or any of its subsidiaries within the
United States and any foreign country in which ACL or any of its subsidiaries conducts any aspect
of the Business during the term of the letter agreement. For purposes of this Appendix C, the term
“Business” shall mean inland marine transportation, ancillary services and marine vessel
construction and repair in the United States.

               1.2 Covenant Not to Solicit Employees. For a period of 12 months following the
termination of the Executive’s employment by ACL, the Executive agrees and covenants that he shall
not, for any reason, directly or indirectly, solicit or endeavor to entice away from ACL and its
subsidiaries and affiliates (whether for the Executive’s own benefit or on behalf of another person
or entity), or facilitate the solicitation or enticement of, any executive or management employee
of ACL and its subsidiaries and affiliates to work for the Executive, any affiliate of the
Executive or any competitor of ACL and its subsidiaries and affiliates, nor shall the Executive
otherwise attempt to interfere (to ACL’s detriment) in the relationship between ACL or any of its
subsidiaries or affiliates and any such employees; provided, however, that a general solicitation
that does not specifically identify the Executive or covered employees shall not be deemed to
violate this Section 1.2.

               1.3 Covenant Not to Solicit Customers. For a period of 12 months following the
termination of the Executive’s employment by ACL, the Executive agrees and covenants that he shall
not, directly or indirectly, in any form or manner, contact, solicit, or facilitate the contacting
or solicitation of, any Customer of ACL and its subsidiaries and affiliates for the purpose of
competing with the Business. For purposes of this Appendix C, the term “Customer” shall mean and
refer to each person or entity that has a contract with or is actively being solicited by ACL and
its subsidiaries and affiliates with respect to the Business during the period of Executive’s
employment hereunder.

               1.4 Covenant of Confidentiality. At any time during the term of Executive’s
employment with ACL (pursuant to the letter agreement or otherwise), and for a period of five (5)
years after the termination of Executive’s employment with ACL for any reason, Executive shall not,
except in furtherance of the Business of ACL and its subsidiaries and affiliates or otherwise with
the prior authorization of ACL, in any form or manner, directly or indirectly, divulge, disclose or
communicate to any person, entity, firm, corporation or any other third party (other than in the
course of Executive’s employment hereunder), or utilize for Executive’s personal benefit or for the
benefit of any competitor of ACL and its subsidiaries and affiliates any Confidential Information.
ACL and the Executive acknowledge and agree that such Confidential Information is extremely
valuable to ACL and shall be deemed to be a “trade secret.” In the event that any part of the
Confidential Information becomes generally known to the public through legitimate origins (other
than by the breach of this Appendix C by the Executive or by misappropriation), or is required to
be disclosed by legal, administrative or judicial process (provided that the Executive has provided
ACL reasonable prior notice of such request and ACL has had a reasonable opportunity, at its
expense, to dispute, defend or limit such request for the Confidential Information), that part of
the Confidential Information shall no longer be deemed Confidential Information for purposes of
this Appendix C, but the Executive shall continue to be bound by the terms of this Appendix C as to
all other Confidential Information.

               1.5 Return of Property. Upon termination of the letter agreement for any reason, the
Executive shall promptly deliver to ACL all correspondence, drawings, blueprints, manuals, letters,
notes, notebooks, reports, programs, plans, proposals, financial documents or any other documents,
including all copies in any form or media, concerning ACL’s Customers, marketing strategies,
products or processes which contain any Confidential Information.

               1.6 Assignment of Inventions. The Executive shall assign to ACL all rights, title
and interests in any trade secrets and other products or other inventions relating to ACL’s
business developed by him alone or in conjunction with others at any time while employed by ACL.

               1.7 Equitable Remedies. In the event that Executive breaches any of the terms or
conditions set forth in this Appendix C, Executive stipulates that such breach will result in
immediate and irreparable harm to the business and goodwill of ACL

 

 

and that damages, if any, and remedies at law for such breach would be inadequate. ACL shall
therefore be entitled to apply for and receive from any court of competent jurisdiction an
injunction to restrain any violation of this Appendix C and such further relief as the court may
deem just and proper.

               1.8 Continuing Obligation. Upon termination of the letter agreement for any reason,
the obligations, duties and liabilities of Executive pursuant to this Appendix C are continuing,
and for the periods set forth in such provisions hereof are absolute and unconditional, and shall
survive and remain in full force and effect as provided in each such Section. Notwithstanding
anything else contained in the letter agreement to the contrary, the parties hereto agree that in
the event Executive breaches any of the terms contained in this Appendix C, the obligation of ACL
to pay any base salary or bonus under the letter agreement shall terminate as of the date of such
breach by the Executive.

               1.9 Post-Termination Violations. In the event, and at the moment, that Executive
violates any of his duties or obligations set forth in this Appendix C that continue after any
termination that occurs during the Term of employment for any reason, (x) Executive shall
immediately forfeit any right to exercise any unexercised options that previously vested pursuant
to the terms of the letter agreement or any stock option agreements to which Executive is a party,
(y) any unvested options, shares of restricted stock or other equity awards will immediately be
cancelled and forfeited and (z) all severance payments described in the letter agreement shall
immediately cease and be forfeited.

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