EXHIBIT 10.3(e)

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 1

PLAN DESCRIPTION

    This document is divided in three sections: (1) Plan Description, (2) Plan
Administration, and (3) Eligible Positions. The first two sections contain
highlights of the Management Incentive (“Incentive”) of the Current Year
Management Incentive Compensation Plan (“Plan”). Participants must read all
sections of this Plan document to fully comprehend their purpose and structure.
      This Plan document supersedes any and all prior Ryder Management Incentive
Compensation Plans and any and all oral representations, promises, or
guarantees. No exceptions to this Plan will be honored without written approval
of the Compensation Committee of the Ryder System, Inc. (“RSI” or “the Company”)
Board of Directors. Any manager or officer who authorizes such an exception
without prior approval of the Compensation Committee will be subject to
disciplinary action up to and including forfeiture of an incentive award and/or
termination.       The following material explains the rules, terms, and
administration of the Current Year Plan for Ryder System, Inc. eligible
positions evaluated at the Management Levels listed below (“Participants”). The
Plan is intended to serve as a single source of information about the Incentive.
      TARGET INCENTIVE AWARD       Target Incentive Award is expressed as a
percentage of eligible base salary for each Participant. The following table
summarizes the Target Incentive Award for each participating management level:

          Management Level   Target Incentive Award

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Management Level 22
    100 %
Management Level 20
    85 %
Management Level 17-19
    75 %
Management Level 14-16
    70 %

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 2

PLAN DESCRIPTION (continued)

    INCENTIVE PAYOUT CALCULATION – PART I       Part I of the Incentive Payout
Calculation is based on 70% RSI EVA and 30% RSI Dry Operating Revenue
Attainment, focusing at the Senior Management level on total company objectives.
The Plan is intended to provide Participants with competitive compensation for
achieving and exceeding targeted performance levels. Incentive Payout(s) will be
calculated when performance is at or above Threshold. The following table
highlights target and payout multiples for the RSI EVA and Dry Operating Revenue
Attainment component used in the Incentive Payout calculation.

                                              Threshold   Target   2 Times
Weight   Incentive Payout Component   (Payout = 25%)   (Payout = 100%)   (Payout
= 200%)

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70%
  RSI EVA ($MM)   ($ 66.2 )   ($ 37.6 )   $ 15.4  
30%
  RSI Dry Operating Revenue Attainment ($MM)   $ 3,678.67     $ 3,811.93     $
4,002.52  
 
                               
 
  Dry Operating Revenue is defined as RSI Gross Revenue minus RSI FUM minus FMS
fuel revenue                        

    THRESHOLD, TARGET, AND TWO TIMES PERFORMANCE       If RSI does not attain
the ($66.2) MM EVA threshold for the Current Year performance, all incentive
payments are forfeited for all Plan Participants.       The following table
highlights incentive multiples for Threshold, Target and Two times Performance.

          Threshold
(Payout = 25%)   Target
(Payout = 100%)   2 Times
(Payout = 200%)

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 3

PLAN DESCRIPTION (continued)

    EXAMPLE:       A Participant whose annual rate of pay (as defined in the
“Eligible Base Salary Calculation” section) is $154,500, qualifies for a target
incentive payout of 70% or $108,150 (based on Level 14).

                  Eligible Base Salary   Target Incentive Payout(%)   Target
Incentive Payout

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$154,500
    70 %   $ 108,150  

    Assume that, during the plan year, the Incentive Multiple is 105.00% for RSI
EVA and 90.00% for RSI Dry Operating Revenue. The Participant would be eligible
for a total incentive payout calculated as follows:

                                                                               
              Target                                                    
Eligible           Incentive                           Incentive                
    Base           Payout                           Multiple                
Components   Salary           (%)           Weight           Percentage        
  Payout

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RSI EVA
  $ 154,500       x       70 %     x       70 %     x       105.00 %     =     $
79,490  
RSI Dry Rev
  $ 154,500       x       70 %     x       30 %     x       90.00 %     =     $
29,201  
 
                                                                   

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Total Calculated Incentive
                                                            =     $ 108,691  
 
                                                                   

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    INCENTIVE PAYOUT CALCULATION – PART II       Part II of the Incentive Payout
Calculation focuses on a behavioral performance modifier, consisting of seven
behavioral components. The goal of the Plan is not only to achieve the targeted
financial results but also to reach them utilizing the right behaviors.
Participants will be rated on how well the Plan objectives are achieved, while
demonstrating the appropriate behaviors. The behavioral performance modifier
rating may result in an incentive payment up to 25% above or up to 50% below the
calculated payout, given company performance for the Current Year.       The
following are the components of the behavioral performance modifier:

   Behavioral Components*

          1.   Impact:   Thought leader and change agent 2.   Diversity:  
Respects differences and promotes diversity 3.   Teamwork:   Fosters teamwork 4.
  Customer Focus:   Customer and externally focused 5.   Ownership:   Takes
ownership 6.   Leadership 1:   Ethics and integrity 7.   Leadership 2:   Vision
and purpose

    * Additional information on how the behavioral components may impact your
incentive will be distributed to you at a later date.

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 4

PLAN ADMINISTRATION

    The following rules apply to all Plan Participants. The Company reserves the
right to alter, modify, change or terminate any of the provisions described
below at any time, with or without notice at its sole discretion.

•     Base Salary Calculation         For the purpose of incentive calculations,
Eligible Base Salary is defined as the annual rate of pay for the calendar year,
excluding all other compensation paid to the Participant during the year,
including but not limited to bonus, incentives, commissions, employee benefits,
relocation expenses, and any imputed income for which the Participant may be
eligible.         Employees who are newly hired, promoted or transferred into or
out of eligible positions, and those who move from one eligibility level to
another will receive pro-rata incentive based on the annual rate of pay and
Target Incentive Award in eligible positions, provided they are employed in good
standing without any performance issues (see Exclusion Criteria) at the time
incentives are distributed.         The annual rate of pay for a Participant
whose base salary changes within the calendar year is calculated below. Salaried
employees are paid semi-monthly, each check representing 1/24 of the annual base
salary. Daily pay for a salaried employee is calculated by dividing the annual
salary by 365 days per year.

      Eligible Base Salary Calculation Example         Annual rate of pay would
be calculated as follows for a Participant who begins a calendar year with a
base salary of $150,000, then effective April 1, receives an increase to a base
salary of $156,000:

                                 
January 1 through March 31:
                                                                 
Total # of days in period
  =   90   =   0.247 x $150,000   =   $ 37,050  

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Total # of days in Year
      365                                                        
April 1 through December 31:
                                                                 
365 - 90
  =   275   =   0.753 x $156,000   =   $ 117,468  

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Total # of days in year
      365                                                        
Annual Rate of Pay for Calendar Year
                      =   $ 154,500*
*Rounded to nearest hundred for ease of computation in Example
                             

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 5

PLAN ADMINISTRATION (continued)

  • Change of Control       Notwithstanding anything in this Plan to the
contrary, in the event of a Change of Control of the Company (as defined and
adopted by the Board of Directors on August 18, 1995 and which definition may be
changed from time to time), the funds necessary to pay the incentive for
Participants, will be placed in a trust administered by an outside financial
institution. The amount of each Participant’s incentive will be determined in
accordance with the provisions of the Plan by an accounting firm chosen by the
Company. Should a Change of Control occur during the current plan year,
Participants will receive instructions regarding the collection of incentive
awards.     • Currency       Each incentive component’s multiple will be
calculated based on the in-country currency, as shown on the unit’s business
plan. The Participant’s incentive payout will be calculated based on the
currency the eligible base salary is expressed in.     • Disability, Permanent
Disability Retirement, or Death       Participants who leave the Company during
the calendar year via disability or permanent disability retirement may be
eligible, subject to the Exclusion Criteria, for pro-rata incentive. The spouse
or legal representative of a deceased Participant may be eligible, subject to
the Exclusion Criteria, for a pro rata incentive as well.     • Eligibility    
  Employees whose positions are designated in the Eligible Position table and
who are employed in good standing, without any performance issues (see Exclusion
Criteria) at the time of payout are eligible to participate in this Plan.
Individuals who have written agreements which specifically provide for incentive
compensation other than that which is provided in this Plan or who are
Participants in any other short-term incentive compensation plan of RSI, its
subsidiaries or affiliates are not eligible to participate in this Plan.      
Employees who are newly hired, promoted or transferred into or out of eligible
positions, and those who move from one eligibility level to another will receive
pro-rata incentive based on the annual rate of pay and Target Incentive Award in
eligible positions, provided they are employed in good standing without any
performance issues (see Exclusion Criteria) at the time incentives are
distributed.

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 6

PLAN ADMINISTRATION (continued)

  • Exclusion Criteria       Participation in the Plan is not a right, but a
privilege subject to annual review by the Company. The Company retains the
right, at its sole and absolute discretion, to withhold payment from any
Participant who violates or who has violated any Company principle or policy, or
the rules contained in this Plan, even if there are no documented performance
issues in the Participant’s personnel file.     • Maximum Incentive Award
Opportunity       The maximum incentive opportunity will be two times Payout.
The Participant may exceed the two times cap only through the Behavioral
Performance Modifier.     • No Guarantee       Eligible employees who
participate in this Plan, by virtue of participation, are not assured that they
will receive any incentive. The achievement of the Plan components and the
Behavioral Performance Modifier, will determine the extent to which Participants
will be entitled to receive a payout. If RSI does not attain the ($66.2) MM EVA
threshold for the Current Year performance, all incentive payments are forfeited
for all Plan Participants. All incentive payouts are subject to the sole
discretion of the Board of Directors of the Company.     • Plan Scale for
Current Plan Year – RSI EVA       The following scale illustrates how the Plan
Scale works for the RSI EVA portion of the Incentive Payout Calculation. Noted
are the points where Threshold, Target and Two Times are achieved. Incentive
amounts are dependent on the multiple declared, based solely on RSI EVA.
Earnings Per Share or “EPS” is shown only as a frame of reference.

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                              Threshold   Target   Two Times    

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EVA ($MM)
  $ (66.2 )   $ (37.6 )   $ 15.4  
EPS
  $ 1.57     $ 2.05     $ 2.95  
Payout
    25 %     100 %     200 %

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 7

PLAN ADMINISTRATION (continued)

  • Promotion       A Participant who is promoted during the calendar year will
receive a pro-rata incentive based on the annual rate of pay and the Target
Incentive Award in the eligible positions. The Participant will receive a
pro-rata incentive based on the appropriate Plan for his/her management level,
position and the portion of time spent in each position during the year.     •
Retirement       Only Participants who retire on or after December 31st of the
calendar year (under the provisions of one of the Company’s retirement plans)
are eligible for full payouts of incentive. No pro-rata incentives will be paid
upon retirement except as noted under the Disability, Permanent Disability
Retirement, or Death section.     • Sale of Business       If a business is
sold, the Participants of the sold business will receive a pro-rata incentive
for the year in which the business is sold. Such payment will be made in a lump
sum or over time at the Company’s discretion. The Participants need to be
employed in good standing, without any performance issues (see Exclusion
Criteria), at the time incentives are distributed.     • Termination      
Participants leaving the Company under any conditions other than those outlined
in the Change of Control, Disability, Permanent Disability Retirement, or Death
or Eligibility sections of this Plan are not eligible for the incentive for the
year in which they leave, nor are they eligible for the preceding year, if such
incentives have not yet been distributed, unless otherwise required by law.    
• Workers’ Compensation or Leave of Absence (“LOA”)       A Participant who
leaves the payroll due to a workers’ compensation leave or LOA will be eligible
to receive a pro-rata incentive for the year in which they leave the payroll,
provided the employee worked for at least six months of the calendar year,
unless otherwise required by law.

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 8

DEFINITIONS

Definitions are for informational and explanatory purposes only. The Company can
change and interpret the defined terms below at its sole discretion.

•   Dry Operating Revenue       RSI Gross Revenue minus RSI Freight Under
Management (FUM) minus Fleet Management Solutions (FMS) fuel revenue.   •  
Eligible Base Salary       For the purpose of incentive calculations, the annual
rate of pay for the calendar year, excluding all other compensation paid to the
employee during the year, including but not limited to bonus, incentives,
commissions, employee benefits, relocation expenses, and any imputed income for
which the Participant may be eligible.   •   EVA       Economic Value Added. EVA
is a measurement tool that determines whether a business is earning more than
its true cost of capital by incorporating the cost of equity capital as well as
debt capital. EVA can be expressed in the following formula: EVA = Net Earnings
After Tax (NAT) minus “an equity charge.”   •   Equity Charge       The Average
Equity times the Cost of Equity as determined by the Chief Financial Officer.  
•   Incentive Interval       The Incentive Interval (“Interval”) is the
(i) improvement needed, over and above Targeted performance, to declare a two
times payout and (ii) the shortfall from Target that will cause a lower payout.
The following chart illustrates the Interval concept for the RSI EVA component.

                                  25% Payout (Threshold)

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            Interval                             Threshold to   Threshold Payout
  Threshold Component   Target   Target   Calculation   Payout

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RSI EVA ($MM)
    ($37.6 )   $ 28.6       ($37.6) - $28.6 = ($66.2 )     ($66.2 )

                                  2x Payout

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            Interval                 Component   Target   Target to 2x   2x
Payout Calculation   2x Payout

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RSI EVA ($MM)
    ($37.6 )   $ 53.0       ($37.6) + $53.0 = $15.4     $ 15.4  

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 9

PLAN ADMINISTRATION (continued)

•   Incentive Multiple       The Incentive Multiple for each component is the
difference (positive or negative) between Actual and Target, divided by the
Interval of that component adjusted for the slope of the payout percentage, plus
or minus 100%. Assume RSI’s Actual EVA for the Current Year is ($34.95) MM. The
RSI Incentive Multiple would be calculated as illustrated in the following two
steps:

STEP 1:
“Percent Above Target” Calculation

                 
Actual RSI EVA
        ($ 34.95)  MM
Target RSI EVA
    –   ($ 37.60)  MM
 
         

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Variance from Target RSI EVA
    =   $ 2.65  MM
RSI Incentive Interval*
    ÷   $ 53.00  MM
 
         

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Percent Above Target
    =     5.00%

STEP 2:
“Incentive Multiple” Calculation

                         
Target RSI EVA
            100.00 %
Percent Above Target
    +       5.00 %
 
           

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Incentive Multiple
    =       105.00 %

    *If Actual RSI EVA is below Target, the interval is $28.6 MM. If Actual RSI
EVA is above Target, the interval is $53.0 MM.       For more information on the
Incentive Multiple and its relationship to the various components of the
Incentive Payout, please refer to the Incentive Payout Calculation example
illustrated in the Plan Description.   •   Incentive Payout or Calculated
Incentive

The potential Incentive Payout determined by multiplying the Participant’s
Target Incentive Award, the Weight and the Incentive Multiple.   •   NAT

The consolidated Net Earnings After Tax for the year, including appropriate
accruals for all incentive estimated to be payable for that year.   •  
Participant

Any employee of the Company designated to be eligible to participate in this
Management Incentive Plan.   •   Target Incentive Award

The Target Incentive Award per Participant is the percentage of the
Participant’s Eligible Base Salary to which the Incentive Payout Calculation
will be applied.

 

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          SENIOR MANAGEMENT 2003 MANAGEMENT INCENTIVE COMPENSATION PLAN   LEVELS
MS14 – MS22     PAGE 10

ELIGIBLE POSITIONS

2003 SENIOR MANAGEMENT ELIGIBLE POSITIONS

                      Position     Position Title   Number    

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1   Chairman, President and CEO     9349   2   SR EVP Finance & CFO     1069   3
  EVP General Counsel and Secretary     1512   4   EVP HR, Public Affairs, and
Corporate Communications     9296   5   EVP Domestic Supply Chain Solutions    
9489   6   EVP Fleet Management Solutions     9201   7   EVP International SCS  
  9202   8   SVP & CIO     9224   9   SVP FMS Operations     9326   10   SVP
Sales and Marketing     9220   11   SVP AAI Operations     9494   12   SVP
Strategic Planning and Development     9520   13   SVP Field Finance     9217  
14   SVP and Treasurer     9176   15   SVP High Tech and Consumer Industries    
9492   16   SVP Business & Accounting Services     9328   17   SVP Asset
Management     9463   18   VP/Managing Director Europe     N/A   19   VP/GM
Canada     0002   20   VP Corporate Communications     9007   21   VP &
Controller     9330   22   VP Compensation and Benefits     1265   23   VP Tax  
  9331   24   VP Public Affairs     1277   25   VP Dedicated Contract Carriage  
  9281   26   VP/MD Latin America     9284   27   VP Product and Technology
Development     9154   28   VP Region     9034   29   VP Sales     9297   30  
VP Automotive     9040   31   VP Strategic Sourcing     9346   32   VP Safety
Health and Security     9046   33   VP Maintenance     1005     **   Other
positions may be added through the course of the year