Document:

Exhibit 10.1 FinalPacer2013NQDCPlan4_2013SEC

Exhibit 10.1 

PACER INTERNATIONAL, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN
 
EFFECTIVE APRIL 16, 2013

 

TABLE OF CONTENTS

PACER INTERNATIONAL, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN
Table of Contents 

	
				
	 
	 
	 
	Page

	Article 1
	 
	 
	 

	 
	Definitions
	 
	1

	 
	1.1
	Account
	1

	 
	1.2
	Administrator or Plan Administrator
	1

	 
	1.3
	Board
	1

	 
	1.4
	Code
	1

	 
	1.5
	Covered Compensation
	1

	 
	1.6
	Deferrals
	1

	 
	1.7
	Deferral Election
	2

	 
	1.8
	Discretionary Contribution
	2

	 
	1.9
	Effective Date
	2

	 
	1.10
	Eligible Employee
	2

	 
	1.11
	Employee
	2

	 
	1.12
	Investment Fund
	2

	 
	1.13
	Participant
	2

	 
	1.14
	Payment Event
	2

	 
	1.15
	Plan Sponsor
	2

	 
	1.16
	Plan Year
	2

	 
	1.17
	Section 409A
	2

	 
	1.18
	Separation from Service
	3

	 
	1.19
	Specified Employee
	3

	Article 2
	 
	 
	 

	 
	Participation
	 
	3

	 
	2.1
	Commencement of Participation
	3

	 
	2.2
	Loss of Eligible Employee Status
	3

	Article 3
	 
	 
	 

	 
	Contributions
	 
	3

	 
	3.1
	Deferral Elections - General
	3

	 
	3.2
	Time of Election
	4

	 
	3.3
	Deferral and Distribution Elections
	4

	 
	3.4
	Additional Requirements
	4

	 
	3.5
	Discretionary Contributions
	5

	 
	 
	 
	 

	Article 4
	 
	 
	 

	 
	Vesting
	 
	5

	 
	4.1
	Vesting of Accounts
	5

 

TABLE OF CONTENTS
(continued)
Page

	
				
	Article 5
	 
	 
	 

	 
	Accounts
	 
	5

	 
	5.1
	Accounts
	5

	 
	5.2
	Investment Funds, Gains and Losses
	5

	Article 6
	 
	 
	 

	 
	Distributions
	 
	6

	 
	6.1
	Distributions
	6

	 
	6.2
	Payment Events
	6

	 
	6.3
	Timing of Payments
	7

	 
	6.4
	Form of Payment
	7

	 
	6.5
	Medium of Payment
	7

	 
	6.6
	Substantially Equal Annual Installments
	7

	 
	6.7
	Distributions upon Death
	8

	 
	6.8
	Changes to Distribution Elections
	8

	 
	6.9
	Acceleration or Delay in Payments
	8

	 
	6.10
	Unforeseeable Emergency
	8

	 
	6.11
	Domestic Relations Orders
	9

	 
	6.12
	Minimum Distribution
	9

	 
	 
	 
	 

	Article 7
	 
	 
	 

	 
	Reserved
	 
	9

	 
	7.1
	Intentionally Omitted
	9

	Article 8
	 
	 
	 

	 
	Funding
	 
	9

	 
	8.1
	Prohibition Against Funding
	9

	 
	8.2
	Deposits in Trust
	9

	Article 9
	 
	 
	 

	 
	General Provisions
	 
	10

	 
	9.1
	Administrator
	10

	 
	9.2
	No Assignment of Benefits of Payments
	10

	 
	9.3
	Incompetence
	11

	 
	9.4
	Expenses
	11

	 
	9.5
	Insolvency
	11

	 
	9.6
	Amendment or Modification
	11

	 
	9.7
	Plan Suspension
	11

	 
	9.8
	Plan Termination
	11

	 
	9.9
	Plan Termination due to a Change-in-Control
	12

	 
	9.10
	Construction
	12

	 
	9.11
	Governing Law
	12

	 
	9.12
	Severability
	12

	 
	9.13
	Headings
	12

	 
	9.14
	Terms
	12

TABLE OF CONTENTS
(continued)
Page

	
				
	 
	9.15
	Effect of Plan on Plan Sponsor and Participants
	13

	 
	9.16
	Plan Creates No Guaranty of Continued Employment
	13

	 
	9.17
	Illegality or Invalidity of Any Plan Provision
	13

	 
	9.18
	Effect of Payment of Plan Benefits
	13

	 
	9.19
	Effect of Plan Titles and Headings
	13

	 
	9.20
	Tax Effect and No Guarantee of Investment Returns
	13

	 
	9.21
	Claims and Appeals
	13

 

PACER INTERNATIONAL, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN

Pacer International, Inc. (“Pacer” or the “Plan Sponsor”) hereby establishes the Pacer International, Inc. Non-Qualified Deferred Compensation Plan (the “Plan”).  The primary purpose of the Plan is to provide a program of deferred compensation for a select group of management or highly compensated employees who meet the participation requirements set forth herein. As such, the Plan is intended to be a “top hat” plan, which is unfunded for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and to be exempt from any ERISA provision that is deemed inapplicable to an unfunded plan. This Plan is also intended to comply in form and operation with the requirements of Code Section 409A and its corresponding regulations and shall be interpreted in a manner consistent with such Code section and regulations.  
 
Article 1 
DEFINITIONS
		
	1.1
	Account

A hypothetical bookkeeping account established in the name of each Participant and maintained by the Plan Sponsor to reflect the Participant's interests under the Plan.

		
	1.2
	Administrator or Plan Administrator

The Plan Sponsor is the Plan Administrator.  Applicable duties will be carried out by an individual or committee appointed by the Board or other responsible corporate officer as the agent for the Plan Sponsor.  

		
	1.3
	Board

The Board of Directors of Pacer International, Inc.

		
	1.4
	Code

The Internal Revenue Code of 1986, as amended.

		
	1.5
	Covered Compensation  

Covered Compensation means the compensation of an Eligible Employee that is determined by the Plan Sponsor to be eligible to be deferred for a Plan Year pursuant to a Deferral Election, which may be base salary, annual bonus and eligible long term incentive compensation.  Covered Compensation shall exclude fringe benefits and amounts contributed to a 401(k) plan and to any welfare benefit plans through a reduction in compensation which are not included in gross income for the taxable year in which such amounts are contributed.  

		
	1.6
	Deferrals

The portion of a Participant’s Covered Compensation that has been deferred in accordance with the Plan and the Participant’s Deferral Election as provided in Section 3.1 hereof.

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	1.7
	Deferral Election

The separate agreement, submitted to the Administrator, by which an Eligible Employee agrees to participate in the Plan and make Deferrals thereto for a Plan Year. The Deferral Election must be made in the form determined by the Administrator, which may include electronic or online submission.

		
	1.8
	Discretionary Contribution

The amount the Plan Sponsor credits to a Participant’s Account under the Plan on behalf of a Participant, pursuant to Section 3.5 of the Plan, and not under a Deferral Election.

		
	1.9
	Effective Date

April 16, 2013.

		
	1.10
	Eligible Employee

Any highly compensated or senior officer employee on active status on the Plan Sponsor’s payroll who has been selected by the Administrator, in its sole discretion, to make a Deferral Election or to receive a Discretionary Contribution.

		
	1.11
	Employee

Any individual who is employed by or providing services to the Plan Sponsor.  The term also means "service provider" as used in Treas. Reg. section 1.409A-1(f).

		
	1.12
	Investment Fund

Each investment option established by the Administrator, which serves as a means to measure value, increases or decreases with respect to a Participant’s Accounts.

		
	1.13
	Participant

An Eligible Employee who is a Participant as provided in Article 2.

		
	1.14
	Payment Event

The events set forth in Article 6.

		
	1.15
	Plan Sponsor

Pacer International, Inc.

		
	1.16
	Plan Year

Calendar year.

		
	1.17
	Section 409A

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Section 409A of the Internal Revenue Code of 1986 and the applicable regulations and other guidance thereunder.

		
	1.18
	Separation from Service

Provided that such term shall be interpreted within the meaning of regulations promulgated under Section 409A, which currently requires, in general terms, that a Participant shall incur a Separation from Service upon his or her cessation of employment with the Plan Sponsor or, if sooner, upon the reduction in his or her level of services to an amount equal or less than 20% of his or her average level of bona fide services provided to the Plan Sponsor and its affiliates during the preceding 36 months.

		
	1.19
	Specified Employee

A key employee (as defined in Code section 416(i) without regard to Code section 416(i)(5)) of the Plan Sponsor (if such Plan Sponsor is publicly traded on an established securities market or otherwise).  An employee is a key employee if the employee meets the requirements of Code section 416(i)(1)(A)(i), (ii) or (iii) (applied in accordance with the regulations thereunder and disregarding Code section 416(i)(5)) at any time during the 12-month period ending on December 31. The application of rules regarding a "Specified Employee" to spinoffs and mergers and nonresident alien employees shall be determined pursuant to applicable Internal Revenue Service guidance.

ARTICLE 2     
PARTICIPATION
		
	2.1
	Commencement of Participation

Each Eligible Employee shall become a Participant as of the date on which his or her Deferral Election or Discretionary Contribution first becomes effective.

		
	2.2
	Loss of Eligible Employee Status

A Participant who is no longer an Eligible Employee shall not be permitted to submit a Deferral Election and all Deferrals for such Participant shall cease as of the end of the Plan Year in which such Participant is determined to no longer be an Eligible Employee. Amounts credited to the Account of a Participant who is no longer an Eligible Employee shall continue to be held pursuant to the terms of the Plan and shall be distributed as provided in Article 6.
 
ARTICLE 3     
CONTRIBUTIONS
		
	3.1
	Deferral Elections - General

The Administrator shall determine for each Plan Year, which portion of an Eligible Employee’s Covered Compensation shall be eligible for deferral under the Plan. An Eligible Employee shall make a new Deferral Election with respect to each Plan Year. 

A Participant’s Deferral Election for a Plan Year is irrevocable for that applicable Plan Year; provided, however, that a Deferral Election for a Plan Year may be canceled upon a Participant's death, Separation 

3

 

from Service or as required under Section 6.6 (Unforeseeable Emergency) of this Plan.  Such amounts deferred under the Plan shall not be made available to such Participant, except as provided in Article 6.

		
	3.2
	Time of Election

A Deferral Election shall be void if it is not made in a timely manner as follows:

		
	(a)
	A Deferral Election must be submitted to the Administrator before the beginning of the calendar year during which the amount to be deferred will be earned. As of December 31 of each calendar year, said Deferral Election is irrevocable for the calendar year to which it relates.  If determined by the Administrator, a Deferral Election to defer performance-based compensation must be made by the deadline established by the Administrator in accordance with Section 409A.

		
	(b)
	Notwithstanding the foregoing, in a year in which an Eligible Employee is first eligible to participate, and provided that such Eligible Employee is not eligible to participate in any other similar account balance arrangement subject to Section 409A, such Deferral Election may be submitted within thirty (30) days after the date on which the Eligible Employee is first eligible to participate, and such Deferral Election shall apply to Covered Compensation to be paid for services to be performed during the remainder of the calendar year after such election is made.

		
	3.3
	Deferral and Distribution Elections

The Deferral Election must specify:
		
	(a)
	The amount or percentage of Covered Compensation to be deferred, subject to any minimum and maximum amounts established by the Committee);

		
	(b)
	The Payment Event for distribution timing of the Participant's Account, subject to the provisions of the Plan;

		
	(c)
	The form of payment for the Participant's Account (lump sum or annual installments); and

		
	(d)
	The percentage or amount of the Participant's Account to be allocated to each Investment Fund available under the Plan.

If the Participant fails to properly designate the time and schedule of a distribution, the Participant’s Account shall be paid in a lump sum during the seventh month following the Employee's Separation from Service.

		
	3.4
	Additional Requirements

The Deferral Election shall comply with the following additional requirements, or as otherwise required by the Administrator in its sole discretion:

		
	(a)
	Deferrals may be made in whole percentages or stated dollar amounts with such limitations, as determined by the Administrator.

4

 

		
	(b)
	The maximum amount that may be deferred each Plan Year is one-hundred percent (100%) of the Participant’s Covered Compensation.

		
	3.5
	Discretionary Contributions

In any Plan Year the Plan Sponsor may, but need not, make a Discretionary Contribution to the Plan on behalf of a Participant in such amount as the Plan Sponsor shall determine in its sole discretion. Discretionary Contributions need not be uniform among Participants and may be conditioned on such terms and conditions, including service or performance vesting, as determined by the Administrator.  The Plan Sponsor shall fix the timing and form of payment for the Discretionary Contribution at the time such amount is credited to a Participant’s Account.
 
ARTICLE 4     
VESTING
		
	4.1
	Vesting of Accounts

A Participant shall be one-hundred percent (100%) vested in his or her Account attributable to Deferrals and any earnings or losses on the investment of such Deferrals.  Notwithstanding the foregoing, the vesting schedule for Discretionary Contributions shall be established by the Administrator at the time such amount is credited to the Participant’s Account.

ARTICLE 5     
ACCOUNTS
		
	5.1
	Accounts

The Administrator shall establish and maintain a bookkeeping account in the name of each Participant.  The Administrator may establish more than one Account or sub-account on behalf of any Participant as deemed necessary by the Administrator for administrative purposes.  Each Participant’s Account shall be credited with Deferrals (as specified in the Participant’s Deferral Election) and Discretionary Contributions, if any, and the Participant’s allocable share of any earnings or losses on the foregoing.

		
	5.2
	Investment Funds, Gains and Losses

		
	(c)
	It is the intention of the Plan Sponsor that the Plan be an unfunded "top hat plan" for highly compensated and managerial employees within the meaning of Title I of ERISA.  All assets that are invested according to the Participant Accounts shall remain, until distributed to Participants (or Participant’s estate) in accordance with the terms of the Plan, assets of the Plan Sponsor and subject to its general creditors.  

		
	(d)
	A Participant may designate one or more Investment Funds to serve as indices for the investment performance of such Participant’s Account in multiples of one percent (1%).  The Investment Funds designated by the Participant may, in the discretion of the Administrator, be selected from a menu of insurance contracts, a Plan Sponsor Stock Fund, mutual funds and/or securities made available for such purpose by the Administrator.  The Investment Funds designated as investment indices for purposes of this Section 5.2(b) 

5

 

shall serve only as indices for purposes of determining the amounts credited as “gains” or “losses” with respect to a Participant’s Account. Each Participant’s Account shall be adjusted to reflect the gain or loss such Account would experience had the Account actually been invested in the specified Investment Funds at the relevant times.  
		
	(e)
	The Administrator shall adjust the amounts credited to each Participant’s Account to reflect Deferrals, Discretionary Contributions, investment experience, distributions and any other appropriate adjustments.  Such adjustments shall be effective as soon as administratively feasible.

		
	(f)
	A Participant may change his or her selection of Investment Funds with respect to his or her Account by filing a new election at such times and in accordance with procedures established by the Administrator.  An election shall be effective as soon as administratively feasible following the date the change is submitted on a form prescribed by the Administrator.

		
	(g)
	Notwithstanding the Participant’s ability to designate the Investment Fund in which his or her Account shall be deemed invested,  Participants’ Accounts shall merely be bookkeeping entries on the Plan Sponsor’s books, and no Participant shall obtain any property right or interest in any Investment Fund.

		
	(h)
	Notwithstanding the Administrator’s discretion to select the Investment Funds from time to time, there shall be a minimum of three Investment Funds, which shall be the following, or their equivalent fund: (1) an S&P 500 index fund or similar U.S. large cap stock index; (2) a money market fund; (3) a short-term bond index fund.

ARTICLE 6     
DISTRIBUTIONS
		
	6.1
	Distributions

		
	(i)
	In General.  Each Participant shall designate in his or her Deferral Election the timing of his or her distribution from the choices available under Section 6.2 hereof. 

		
	(j) 
	Timing of Valuation. The value of a Participant's Account on the payment date shall be determined by the Administrator using a valuation date that occurs within thirty days of the payment date.

		
	6.2
	Payment Events

		
	(a)
	Unless otherwise specified in a Deferral Election, Payment of a Participant’s Deferrals (and associated notional investment returns) that are covered by the election shall be made (or commence, in the case of installments) upon the earliest to occur of the following events (each a “Payment Event”): 

		
	(i)
	the distribution date or dates specified in the Deferral Election; provided that, the Participant must select from among the available dates designated by the Administrator; and

6

 

		
	(ii)
	the Participant’s Separation from Service, in up to ten annual installments. 

		
	(b)
	If the Participant fails to properly designate the form or time of the distribution, the Account shall be paid in a lump-sum payment following the Participant’s Separation from Service, subject to Section 6.3.

		
	(c)
	Notwithstanding anything to the contrary in Sections 6.2 or 6.3, in the event of the death of a Participant, full distribution of all remaining Account balances shall be made to the Participant’s estate.

		
	6.3
	Timing of Payments 

		
	(a)
	The distribution shall be made (or in the case of installment distribution, the first installment shall be made) within 30 days following a Payment Event, except that in the event of a distribution due to Separation from Service, any distribution (or in the case of installment distribution, the first installment) that constitutes “non-qualified deferred compensation” payable to a “specified employee”, in each case as determined within the meaning of Section 409A, shall be made during the seventh month following the Participant’s Separation from Service.

		
	6.4
	Form of Payment. 

		
	(a)
	Each Participant shall specify in his or her Deferral Election the form of payment (lump sum or installments) for amounts in his or her Account that are covered by the election; provided that, if the Participant elects to have amounts paid in installments, the Participant must select from among the permissible installment schedules selected by the Administrator and set forth in the Deferral Election. 

		
	(b)
	In the absence of a valid election with respect to form of payment, amounts will be paid in a single lump sum.

		
	(c)
	Payments will be made to the Participant’s most recent address, or bank routing instruction, on file with the Company.

		
	6.5
	Medium of Payment. 

		
	(a)
	Any payment from a Participant's Account shall be made in cash.

		
	6.6
	Substantially Equal Annual Installments

		
	(a)
	If the Participant elects to receive installment payments upon a Payment Event, the payment of each annual installment shall be made on the anniversary of the date of the first installment payment, and the amount of the annual installment shall be adjusted on such anniversary for credits or debits to the Participant's account pursuant to Section 5.2 of the Plan. Such adjustment shall be made by dividing the balance in the relevant Account or sub-account by the number of annual installments remaining to be paid hereunder; provided that the last annual installment due under the Plan shall be the entire amount credited to such account on the date of payment. 

7

 

		
	(b)
	For purposes of the Plan pursuant to Code Section 409A and regulations thereunder, each payment in a series of annual installments shall be considered a separate payment.

		
	(c)
	At each installment, Distributions shall be made ratably from each Investment Fund related to the Account (or sub-account) being distributed.

		
	6.7
	Distributions upon Death

Upon the death of a Participant (including death following commencement of installment distributions), all amounts credited to his or her Account shall be paid, as soon as administratively feasible, but in any event within 90 days, following Participant’s date of death, to his or her estate.  

		
	6.8
	Changes to Distribution Elections

A Participant will be permitted to elect to change the form or timing of the distribution of the balance of his or her Account to the extent permitted and in accordance with the requirements of Section 409A(a)(4)(C), which currently include the requirement that (i) a re-deferral election may not take effect until at least twelve (12) months after such election is filed with the Plan Sponsor, (ii) an election to further defer a distribution (other than a distribution upon death or an Unforeseeable Emergency) must result in the first distribution subject to the election being made at least five (5) years after the previously elected date of distribution, and (iii) any re-deferral election affecting a distribution at a fixed date must be filed with the Plan Sponsor at least twelve (12) months before the first scheduled payment under the previous fixed date distribution election.  Once an Account begins distribution, no such changes to distributions shall be permitted.

		
	6.9
	Acceleration or Delay in Payments

To the extent permitted by Section 409A, and notwithstanding any provision of the Plan to the contrary, the Administrator, in its sole discretion, may elect to (i) accelerate the time or form of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section 1.409A-3(j)(4), or (ii) delay the time of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section 1.409A-2(b)(7). 

		
	6.10
	Unforeseeable Emergency

The Administrator shall permit an early distribution of part or all of any deferred amounts; provided, however, that such distribution shall be made only if the Administrator, in its sole discretion, determines that the Participant has experienced an Unforeseeable Emergency.  An Unforeseeable Emergency is defined as a severe financial hardship resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  If an Unforeseeable Emergency is determined to exist, a distribution may not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).  Upon a distribution to a Participant under this 

8

 

Section, the Participant’s Deferrals shall cease and no further Deferrals shall be made for such Participant for the remainder of the Plan Year and for the immediately succeeding Plan Year.

		
	6.11
	Domestic Relations Orders

The Administrator shall permit the acceleration of the time or schedule of a payment under the Plan to an individual other than a Participant as may be necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B)).
 
		
	6.12
	Minimum Distribution

Notwithstanding any provision to the contrary, if the balance of a Participant’s Account does not exceed $17,500 (or, if greater, the applicable dollar amount under Code Section 402(g)(1)(B)) at the time of the earliest to occur of (1) a Payment Event specified in the Deferral Election or (2) Separation from Service, then the Participant shall be paid his or her Account as a single lump sum within 30 days following such Payment Event or if sooner, during the seventh month following Separation from Service. Such distribution shall result in the termination and liquidation of the Participant’s entire interest in the Plan, and all agreements, methods, programs or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single plan under the plan aggregation rules of Section 409A and regulations thereunder.
  
ARTICLE 7     
RESERVED
		
	7.1
	Intentionally Omitted

ARTICLE 8     
FUNDING
		
	8.1
	Prohibition Against Funding

Should any investment be acquired in connection with the liabilities assumed under this Plan, it is expressly understood and agreed that the Participants and beneficiaries shall not have any right with respect to, or claim against, such assets nor shall any such purchase be construed to create a trust of any kind or a fiduciary relationship between the Plan Sponsor and the Participants, their beneficiaries or any other person.  Any such assets shall be and remain a part of the general, unpledged, unrestricted assets of the Plan Sponsor, subject to the claims of its general creditors.  It is the express intention of the parties hereto that this arrangement shall be unfunded for tax purposes.  Each Participant shall be required to look to the provisions of this Plan and to the Plan Sponsor itself for enforcement of any and all benefits due under this Plan, and to the extent any such person acquires a right to receive payment under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Plan Sponsor.

		
	8.2
	Deposits in Trust

Notwithstanding Section 8.1, or any other provision of this Plan to the contrary, the Plan Sponsor shall establish an irrevocable rabbi trust to assist it in funding the Plan obligations with the intention of mirroring notional investments selected by Participants. The Plan Sponsor shall make regular contributions to the trust to align with total Account balances and the Plan Sponsor’s obligations to Participants, and for further 

9

 

clarification, if at any time the trust balance is not sufficient to meet the aggregate Account balances, the Company shall promptly make an additional contribution to the trust so that the trust asset meets Plan Sponsor’s obligations to Participants.  Any such trust shall be in accordance with a trust agreement which meets the requirements of Rev. Proc. 92-64 (describing a “rabbi trust”), as it may be amended or supplemented in the future.

ARTICLE 9     
GENERAL PROVISIONS
		
	9.1
	Administrator

		
	(d)
	The Administrator is expressly empowered to limit the amount of Compensation that may be deferred; to deposit amounts into the trust in accordance with Section 8.2 hereof; to employ actuaries, accountants, counsel, and other persons it deems necessary in connection with the administration of the Plan; to request any information from the Plan Sponsor it deems necessary to determine whether the Plan Sponsor would be considered insolvent or subject to a proceeding in bankruptcy; and to take all other necessary and proper actions to fulfill its duties as Administrator; and

		
	(e)
	The Administrator shall have the authority and sole discretion to interpret the Plan, to administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument, Deferral Election or agreement relating to the Plan and to determine all questions arising in the administration, interpretation and application of the Plan; to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of the Plan.

		
	(f)
	The Administrator shall not be liable for any actions by it hereunder, unless due to its own negligence, willful misconduct or lack of good faith.

		
	(g)
	The Administrator (and each individual or committee member appointed to serve as Administrator) shall be indemnified and held harmless by the Plan Sponsor from and against all liability to which it may be subject by reason of any act or omitted done in its capacity as Administrator in good faith in the administration of the Plan and trust (if any), including all expenses reasonably incurred in its defense in the event the Plan Sponsor fails to provide such defense upon the request of the Administrator.  The Administrator is relieved of all responsibility in connection with its duties hereunder to the fullest extent permitted by law, except for any liability arising from his or her own willful malfeasance, gross negligence or reckless disregard of his or her duties.

		
	9.2
	No Assignment of Benefits of Payments

Benefits or payments under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant, whether voluntary or involuntary, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish the same shall not be valid, nor shall any such benefit or payment be in any way liable for or subject to the debts, contracts, liabilities, engagement or torts of any Participant, or any other person entitled to such benefit or payment pursuant to the terms of this Plan, except to such extent as may be required by law.  

10

 

		
	9.3
	Incompetence

If the Administrator determines that any person to whom a benefit is payable under this Plan is incompetent by reason of physical or mental disability, the Administrator shall have the power to cause the payments becoming due to such person to be made to another for his or her benefit without responsibility of the Administrator or the Plan Sponsor to see to the application of such payments.  Any payment made pursuant to such power shall, as to such payment, operate as a complete discharge of the Plan Sponsor.

		
	9.4
	Expenses

All expenses incurred in the administration of the Plan, other than customary investment fund expenses, shall be paid by the Plan Sponsor.

		
	9.5
	Insolvency

Should the Plan Sponsor be considered insolvent, the Administrator shall cease to make any payments to Participants or their beneficiaries and shall hold any and all assets attributable to the Plan Sponsor for the benefit of the general creditors of the Plan Sponsor.

		
	9.6
	Amendment or Modification

The Plan Sponsor may, at any time, in its sole discretion, amend or modify the Plan in whole or in part, except that no such amendment or modification shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts, and provided that such amendment or modification complies with Code Section 409A and related regulations thereunder.  Notwithstanding the foregoing, no amendment that would adversely affect a Participant’s rights shall be permitted to the following sections of the Plan: this Section 9.6 (amendment), Section 8.2 (rabbi trust funding) or Section 5.2(f) (minimum Investment Funds), without the written consent of such Participant.

		
	9.7
	Plan Suspension

The Plan Sponsor further reserves the right to suspend the Plan in whole or in part, except that no such suspension shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts, and provided that the distribution of the vested Participant Accounts shall not be accelerated but shall be paid at such time and in such manner as determined under the terms of the Plan immediately prior to suspension as if the Plan had not been suspended.

		
	9.8
	Plan Termination

The Plan Sponsor further reserves the right to terminate the Plan in whole or in part, in the following manner, except that no such termination shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts, and provided that any distribution in connection with such termination complies with Code Section 409A and related regulations thereunder, which currently provide:

		
	(a)
	The Plan Sponsor, in its sole discretion, may terminate the Plan and distribute all vested Participants’ Accounts no earlier than twelve (12) calendar months from the date of the Plan termination and no later than twenty-four (24) calendar months from the date of the 

11

 

Plan termination, provided however that all other similar arrangements are also terminated by the Plan Sponsor for any affected Participant and no other similar arrangements are adopted by the Plan Sponsor for any affected Participant within a three (3) year period from the date of termination; or
		
	(b)
	The Plan Sponsor may decide, in its sole discretion, to terminate the Plan in the event of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court, provided that the Participants vested Account balances are distributed to Participants and are included in the Participants’ gross income in the latest of:  (i) the calendar year in which the termination occurs; (ii) the calendar year in which the amounts deferred are no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which payment is administratively practicable.

		
	9.9
	Plan Termination due to a Change-in-Control

The Plan Sponsor may decide, in its discretion, to terminate the Plan in the event of a change in the effective control of the Plan Sponsor, or a change in the ownership of a substantial portion of the Plan Sponsor's assets (each, a “Change-in-Control”) as determined under Section 409A of the Code) and distribute all vested Participants’ Account balances no earlier than thirty (30) days prior to the Change-in-Control and no later than twelve (12) months after the effective date of the Change-in-Control, provided however that the Plan Sponsor must terminate all other similar arrangements for any affected Participant.
 
		
	9.10
	Construction

All questions of interpretation, construction or application arising under or concerning the terms of this Plan shall be decided by the Administrator, in its sole and final discretion, whose decision shall be final, binding and conclusive upon all persons.

		
	9.11
	Governing Law

This Plan shall be governed by, construed and administered in accordance with the applicable provisions of Code Section 409A, and any other applicable federal law, provided, however, that to the extent not preempted by federal law this Plan shall be governed by, construed and administered under the laws of the State of Ohio other than its laws respecting choice of law.

		
	9.12
	Severability

If any provision of this Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of this Plan and this Plan shall be construed and enforced as if such provision had not been included therein.

		
	9.13
	Headings

The Article headings contained herein are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge or describe the scope or intent of this Plan nor in any way shall they affect this Plan or the construction of any provision thereof.

		
	9.14
	Terms

12

 

Capitalized terms shall have meanings as defined herein.  Singular nouns shall be read as plural, masculine pronouns shall be read as feminine, and vice versa, as appropriate.

		
	9.15
	Effect of Plan on Plan Sponsor and Participants  

The Plan shall be binding upon the Plan Sponsor, its assigns, and any successor company which shall succeed to substantially all of its assets and business through merger, acquisition or consolidation, and upon a Participant, his heirs, executors and administrators.  

		
	9.16
	Plan Creates No Guaranty of Continued Employment 

The terms and conditions of the Plan shall not be deemed to constitute a contract of employment between the Plan Sponsor and any Eligible Employee.  Nothing in this Plan shall of itself be deemed to give an Eligible Employee the right to be retained in the service of the Plan Sponsor or to interfere with any right of the Plan Sponsor to discipline or discharge the Eligible Employee at any time.  

		
	9.17
	Illegality or Invalidity of Any Plan Provision  

In case any provisions of this Plan shall be found illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but the Plan shall be construed and enforced as if such illegal and invalid provision had never been included herein.

		
	9.18
	Effect of Payment of Plan Benefits  

The payment of benefits under the Plan to a Participant or his or her estate shall fully and completely discharge the Plan Sponsor, the Board, and the Committee from all further obligations under this Plan with respect to a Participant, and that Participant’s Deferral Elections, and any outstanding Deferral Elections shall terminate upon such full payment of benefits.

		
	9.19
	Effect of Plan Titles and Headings

Titles and headings of the Articles and Sections of the Plan are included for ease of reference only and are not to be used for the purpose of construing any portion or provision of the Plan document.

		
	9.20
	Tax Effect and No Guarantee of Investment Returns  

The Plan Sponsor does not represent or guarantee that any particular federal, state or local income, payroll, personal property or other tax consequence will result from participation in this Plan.  A Participant should consult with professional tax advisors to determine the tax consequences of his or her participation.  The Plan Sponsor also does not represent or guarantee investment returns with respect to any predetermined investment options and shall not be required to restore any loss which may result from such investment or lack of investment. 

		
	9.21
	Claims and Appeals  

		
	(a)
	If the Administrator either in whole or in part should deny a claim for benefits under the Plan, the Administrator shall furnish to the Participant or other claimant a written notice of the decision within ninety (90) days after the Administrator receives the claim.  The 

13

 

notice will contain the specific reasons for the denial, reference to the Plan provisions on which the decision is based, an explanation of any additional material or information necessary for the claimant to perfect the claim, and a statement of the Plan’s appeal procedure.
		
	(b)
	A Participant or other claimant may appeal any claim which has been denied by making a written request to the Committee within sixty (60) days of receipt of the written notice of denial of the claim.  Such an appellant or his duly authorized representative may review any relevant documents and submit to the Administrator statements in support of the appeal.  The Administrator will provide written notice to such appellant of its decision on the appeal within sixty (60) days after receipt of the written request for appeal.  The notice will provide specific references to the relevant Plan provisions on which the decision is based.

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IN WITNESS WHEREOF, the Plan Sponsor has caused this instrument to be executed by its duly authorized officer, effective as of this 16th of April, 2013.

	
				
	 
	 
	Pacer International, Inc.

	By:
	 

	 
	Name: Florian Kete

	 
	Title:  Vice President, Human Resources

15Exhibit 10.2 KrehbielEmpAgrSEC

Exhibit 10.2
EMPLOYMENT AGREEMENT dated as of April 8, 2013, between Pacer International, Inc., a Tennessee corporation (the “Company”), and Julie A. Krehbiel (the “Executive”).  
The Company and the Executive are entering into this Agreement to set forth the terms of the Executive’s employment with the Company.  Accordingly, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Company and the Executive, the Company and the Executive hereby agree as follows:  
Section 1.Duties.  On the terms and subject to the conditions contained in this Agreement, the Executive will initially be employed by the Company as Executive Vice President, Sales & Marketing - Intermodal and will report to the Company’s Chief Operating Officer. The Executive shall perform such duties and services on behalf of the Company and its Affiliates (as defined in Section 24(b) below) consistent with such title and position as may reasonably be assigned to the Executive from time to time by the Company’s Board of Directors (the “Board”) or the Chief Executive Officer or other more senior officers of the Company.  Anything contained in this Section 1 or elsewhere in this Agreement to the contrary notwithstanding, the Executive acknowledges and agrees that the Executive’s title, principal office, and position and related duties and services may be changed during the course of Executive’s employment by the Board or the Chief Executive Officer or other more senior officers of the Company.  The Executive will have an office in Omaha, Nebraska and at the Company’s headquarters in Dublin, Ohio and will be expected to be away from Omaha approximately 50% of working time. 
Section 2.    Term.  The Executive’s employment hereunder shall be for the period (the “Employment Period”) commencing on the first date that the Executive begins employment with the Company (the “Commencement Date”) and ending on the effective date of the termination of such employment pursuant to and in accordance with the applicable provisions of this Agreement.  Upon such termination of the Executive’s employment hereunder, the Executive (or, if applicable, the Executive’s beneficiaries or estate) shall be entitled only to those rights and benefits provided in Section 8(a) or Section 8(b), as applicable to such termination, subject to the Executive’s compliance with those continuing covenants and agreements set forth in this Agreement.  
Section 3.    Time to be Devoted to Employment.  During the Employment Period, the Executive will devote substantially all of the Executive’s working energies, efforts, interest, abilities and time exclusively to the business and affairs of the Company and its Affiliates.  The Executive will not engage in any other business or activity that, in the reasonable judgment of the Chief Executive Officer or the Board, causes or could reasonably be expected to cause a conflict of interest, affect job performance or otherwise conflict or interfere in any material respect with the Executive’s performance of her duties and responsibilities as set forth in this Agreement, whether or not such activity is pursued for gain, profit or other pecuniary advantage.  

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Section 4.    Base Salary; Bonus; Benefits.  
(a)    During the Employment Period, the Company (or any of its Affiliates) shall pay the Executive a minimum annual base salary (the “Base Salary”) of $300,000.00, payable in such installments (but not less often than monthly) as is generally the policy of the Company with respect to the payment of regular compensation to its employees.  The Base Salary may be increased from time to time in the sole discretion of the Board (or a committee thereof).  The Executive will also be entitled to vacation under the Company’s policy.  Such vacation shall accrue and may be taken in accordance with the Company’s policy in effect from time to time with respect to its employees generally, subject to the Company's right at any time and from time to time to amend, modify, change or terminate such vacation policy in any respect.  The Executive will also be entitled to such other benefits as may be made available to other executive officers of the Company generally, including participation in such health, life and disability insurance programs and retirement or savings plans, if any, as the Company may from time to time maintain in effect, as well as a monthly car allowance in accordance with the Company’s policy from time to time for similarly situated employees, in all cases subject to the Company's right at any time and from time to time to amend, modify, change or terminate in any respect any of its employee and other benefit plans, policies, or programs.  
(b)    During the Employment Period, the Executive shall be entitled to participate in the Company’s performance bonus plan or program if, as, and to the extent adopted by the Board and in effect from time to time with respect to similarly situated executives of the Company and its subsidiaries (the “Bonus Plan”), and to receive such performance bonus thereunder (if any is earned or available) with respect to each fiscal year of the Company occurring during the Employment Period, subject in all cases to the terms and conditions of this Agreement and such Bonus Plan.  The amount of such performance bonus, if any, that may be awarded and payable to the Executive hereunder with respect to any such fiscal year shall range up to fifty percent (50%) of the Base Salary earned and paid for such fiscal year as determined by the Board (or committee thereof) in its sole discretion based on and to the extent of the achievement or satisfaction of such targets, goals and conditions applicable to the Executive as may be provided in such Bonus Plan for such fiscal year, and as the Board (or committee thereof) may otherwise determine.  Such targets, goals and conditions may include (i) business, financial, operating and/or other performance measures applicable to (A) the Company and its Affiliates taken as a whole and (B) those business segment(s) or divisions(s) of the Company and its Affiliates for and with respect to which the Executive is responsible or has authority (e.g., the marketing and sales function) and (ii) such personal and individual performance criteria as may be determined by the Executive’s supervisor or the Board (or committee thereof) taking into account the Executive's duties and responsibilities to the Company and its Affiliates for the period in question.  The performance bonus awarded and payable to the Executive under such Bonus Plan with respect to any such fiscal year (including any pro rated amount payable pursuant to the Bonus Plan and following provisions of this Section 4(b)) shall be paid at such time or times and in such manner as performance bonuses are paid to the other similarly situated employees of the Company generally.  If the Executive’s employment with the Company is terminated by the Company without “cause” pursuant to Section 7(b) below, the Executive may, at the discretion of the Company’s Chief Executive Officer, be entitled to receive that portion of the bonus payable for the fiscal year of the Company during which such termination occurs pro rated through the date of such termination based on the number of days elapsed through the termination date over 365 days (but subject to the terms and conditions of the Bonus Plan, 

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including the Executive’s satisfactory compliance with or achievement of personal and individual performance criteria and objectives for the period while employed as well as Pacer’s or its Affiliates’ or business unit’s achievement of applicable performance measures).  If the Executive’s employment with the Company is terminated for any reason other than by the Company without “cause” pursuant to Section 7(b) below, neither the Company nor any of its Affiliates will be obligated to pay the Executive any bonus with respect to the fiscal year of the Company in which such termination occurred or thereafter.  The Executive’s rights to participate in, and to receive a performance bonus under, the Company’s Bonus Plan in effect for any given fiscal year shall be subject to the Company's right at any time and from time to time to amend, modify, change or terminate such Bonus Plan in any respect.  In the event of a conflict between this Agreement and such Bonus Plan, this Agreement shall control.
Section 5.    Reimbursement of Expenses.  During the Employment Period, the Company shall reimburse the Executive in accordance with Company policy for all reasonable and necessary traveling expenses and other disbursements incurred by the Executive for or on behalf of the Company in connection with the performance of the Executive’s duties hereunder and for reasonable country club membership dues, in all cases upon presentation of appropriate receipts or other documentation therefor and to the extent incurred in accordance with all applicable policies of the Company.    
Section 6.    Disability or Death.  If, during the Employment Period, the Executive is incapacitated or disabled by accident, sickness or otherwise (a “Disability”) so as to render the Executive mentally or physically incapable of performing the services required to be performed by the Executive under this Agreement for any period of 90 consecutive days or for an aggregate of 180 days in any period of 360 consecutive days, the Company may, at any time thereafter, at its option, terminate the Executive’s employment under this Agreement immediately upon giving the Executive written notice to that effect.  In the event of the Executive’s death, the Executive’s employment will be deemed terminated as of the date of death.  
Section 7.    Termination.  
(a)    The Company may terminate the Executive’s employment hereunder at any time for “cause” by giving the Executive written notice of such termination, containing reasonable specificity of the grounds therefor.  For purposes of this Agreement, “cause” shall mean (i) willful or intentional misconduct with respect to the business and affairs of the Company or any of its Affiliates, (ii) willful or intentional neglect of the Executive's duties or the failure to follow the lawful directions of the Board or more senior officers of the Company to whom the Executive reports, including the violation of any material policy of the Company or of any of its Affiliates that is applicable to the Executive, (iii) the material breach of any provision of this Agreement or any other written agreement between the Executive and the Company or any of its Affiliates and, if such breach is capable of being cured, the Executive’s failure to cure such breach within 30 days of receipt of written notice thereof from the Company, (iv) the Executive's commission of a felony, (v) the Executive's commission of an act of fraud or financial dishonesty or (vi) any conviction of the Executive for a crime involving moral turpitude or fraud.  A termination pursuant to this Section 7(a) shall take effect immediately upon the giving of the notice contemplated hereby.  

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(b)    The Company may terminate the Executive’s employment hereunder at any time without “cause” by giving the Executive written notice of such termination, which termination shall be effective as of the date set forth in such notice, provided that such date shall not be earlier than the day on which such notice is delivered to Executive (determined pursuant to Section 16(b) below).  
(c)    The Executive may terminate her employment hereunder at any time for any or no reason by giving the Company written notice of such termination, which termination shall be effective as of the date set forth in such notice, provided that such date shall not be earlier than the day on which such notice is delivered to the Company (determined pursuant to Section 16(b) below).  
Section 8.    Effect of Termination.  
(a)    Upon the effective date of a termination of the Executive’s employment under this Agreement for any reason other than a termination by the Company without cause pursuant to Section 7(b), neither the Executive nor the Executive’s beneficiaries or estate shall have any further rights under this Agreement or any claims against the Company or any of its Affiliates arising out of this Agreement, except the right to receive, within 30 days after the effective date of such termination (or such earlier period as may be required by applicable law):  
(i)    the unpaid portion of the Base Salary provided for in Section 4, computed on a pro rata basis to the effective date of such termination;  
(ii)    reimbursement for any expenses incurred by the Executive up to the effective date of such termination of employment and with respect to which the Executive shall not have theretofore been reimbursed, as provided in Section 5; and  
(iii)    the unpaid portion of any amounts earned by the Executive prior to the effective date of such termination pursuant to any employee benefit plan or program in which the Executive participated during the Employment Period (including any accrued and unused or unpaid vacation benefits that may be earned by or due to the Executive as of the effectiveness of such termination in accordance with the Company’s policy in effect at the effective time of such termination); provided, however, that the Executive shall not be entitled to receive any benefits under any such employee benefit plan or program that have accrued during any period if the terms of such plan or program require that the beneficiary be employed by the Company as of the end of any period ending on or after the effective date of such termination.  
(b)    Upon termination of the Executive’s employment under this Agreement by the Company without cause pursuant to Section 7(b), neither the Executive nor the Executive’s beneficiaries or estate shall have any further rights under this Agreement or any claims against the Company or any of its Affiliates arising out of this Agreement, except the right to receive the following amounts and benefits within 30 days after the effective date of such termination, in the case of amounts due pursuant to clause (i) below, and at such other times as provided in clauses (ii) and (iii) below in the case of amounts due thereunder (or in each case such earlier period as may be required by applicable law); provided, however, 

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that in the case of clauses (ii) and (iii) below, the Executive is not in breach of any provision of this Agreement surviving such termination and does not engage in any activity or conduct proscribed by Section 9 or Section 10 (regardless of the extent to which such Section may be enforced under applicable law):  
(i)    the payments, if any, referred to in Section 8(a) above;  
(ii)    continued payment of an annual amount equal to the Base Salary as in effect immediately prior to the effective date of such termination for twelve (12) months following the effective date of such termination (the “Severance Period”), payable during the Severance Period in such manner as the Base Salary would have been payable pursuant to Section 4(a) but for such termination; and  
(iii)    the payment of any pro rata bonus (or portion thereof), if any, awarded and payable to the Executive pursuant to and in accordance with Section 4(b) with respect to the fiscal year in which such termination occurs, to be paid when and as provided in such Section 4(b).  
Notwithstanding the provisions of this Section 8(b), if on the date of Executive’s termination, Executive is a “specified employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and an exception from Section 409A’s requirements is not available as to any one or more payments or installments, Executive shall not receive a distribution of such payment or installment under this Agreement until six months after the date of termination.  If Executive is subject to the restriction described in the previous sentence, Executive will be paid on the first day of the seventh month after termination an amount equal to the benefit that Executive would have been paid during such six‐month period absent such restriction.  In furtherance of the application of all possible exceptions to requirements of Section 409A, each payment or installment shall be treated as a separate payment in order to maximize the application of payments during the “short term deferral period” under Section 409A.
(c)    Without limiting any other provision of this Agreement, if the Executive dies on or after the effective date of the termination of the Executive’s employment hereunder, the Executive’s heirs, beneficiaries or estate, as their respective interests may appear (but without duplication), shall be entitled to receive or continue to receive those benefits that would otherwise have been due and payable to the Executive pursuant to Section 8(a) above or Section 8(b) above, as applicable.  
(d)    In addition to, and not by way of limitation of, any other provision of this Agreement, upon the effective date of the termination of the Executive’s employment hereunder, the Executive shall surrender and deliver to the Company (i) all computers, cell phones, personal digital assistants or like devices, office equipment, credit cards, charge cards and other tangible property of or belonging to or issued in the name of the Company or any of its Affiliates, (ii) all membership cards for memberships maintained by or in the name of the Company or any of its Affiliates, (iii) all passwords, access codes, documents, records, and files (including all copies thereof, regardless of the form or media in which the same exist or are stored) in the Executive’s possession and belonging or relating to the Company or any of 

5

its Affiliates, and (iv) any and all other personal property in the Executive’s possession belonging to the Company or any of its Affiliates.  
Section 9.    Disclosure of Information.  
(a)    From and after the date hereof, the Executive shall not at any time disclose, divulge, furnish or make accessible to any Person any Confidential Information (as in this hereinafter defined) heretofore acquired or acquired during the Employment Period for any reason or purpose whatsoever (provided that nothing contained in this Agreement shall be deemed to prohibit or restrict the Executive’s right or ability to disclose, divulge, furnish or make accessible any Confidential Information (i) to any officer, director, employee, Affiliate or representative of the Company, or (ii) to any other Person as required in connection with the performance of the Executive’s duties under and in compliance with this Agreement and the applicable policies and procedures of the Company, or as required by law or judicial process), nor shall the Executive make use of any Confidential Information for the Executive’s own purposes or benefit or for the purposes or benefit of any other Person except the Company and its Affiliates.  The covenant contained in this Section 9 shall survive the termination or expiration of the Employment Period and any termination of this Agreement.  
(b)    For purposes of this Agreement, the term “Confidential Information” means (i) the Intellectual Property Rights (as in this hereinafter defined) of the Company and its Affiliates and (ii) all other information of a proprietary or confidential nature relating to the Company or any Affiliate thereof, or the business or assets of the Company or any such Affiliate, including:  books and records; agent and independent contractor lists and related information; customer lists and related information; vendor lists and related information; supplier lists and related information; employee and personnel lists, policies and related information; contract terms and conditions (including those with customers, suppliers, vendors, independent contractors and agents, and present and former employees); terms and conditions of permits, orders, judgments and decrees; wholesale, retail and distribution channels; pricing information, cost information, and pricing and cost structures and strategies; marketing, product development and business development plans and strategies; management reports; financial statements, reports, schedules and other information; accounting policies, practices and related information; business plans, strategic plans and initiatives, forecasts, budgets and projections; and shareholder, board of directors and committee meeting minutes and related information; provided, however, that Confidential Information shall not include (A) information that is generally available to the public on the date hereof, or which becomes generally available to the public after the date hereof without action by the Executive in breach or violation of this Agreement, or (B) information that the Executive receives from a third party who does not have any obligation to the Company or any of its Affiliates to keep such information confidential and which the Executive does not know (or reasonably could not have known) is confidential to the Company or any of its Affiliates.  
(c)    As used in this Agreement, the term “Intellectual Property Rights” means all industrial and intellectual property rights, including the following (whether patentable or not):  patents, patent applications, and patent rights; trademarks, trademark applications, trade names; service marks and service mark applications; trade dress, logos and designs, and the goodwill associated with the foregoing; 

6

copyrights and copyright applications; certificates of public convenience and necessity, franchises and licenses; trade secrets, know-how, proprietary processes and formulae, inventions, improvements, devices and discoveries; development tools; marketing materials; instructions; Confidential Information; and all documentation and media constituting, describing or relating to the foregoing, including manuals, memoranda and records.  
Section 10.     Noncompetition Covenant.  
(a)    The Executive acknowledges and agrees that she will receive significant and substantial benefits from her employment with the Company under this Agreement, including the remuneration, compensation and other consideration inuring to her benefit hereunder, as well as introductions to, personal experience with, training in and knowledge of the Company and its Affiliates, the industries in which they engage, and third parties with whom they conduct business.  Accordingly, in consideration of the foregoing, and to induce the Company to employ and continue to employ the Executive hereunder and provide such benefits to the Executive (in each case subject to the terms and conditions of this Agreement and the applicable employment policies of the Company and its Affiliates), the Executive agrees that she will not during the period  beginning on the Commencement Date and ending twelve (12) months after the effective date of the termination of the Executive’s employment with the Company and its Affiliates (the “Non-Competition Period”) for any reason:  
(i)    in any city or county in any state or province of the United States, Canada or Mexico where the Company or any of its Affiliates conducts business during the Non-Competition Period, directly or indirectly engage or participate in any Competing Business (as defined in Section 10(b) below) (whether as an officer, director, employee, partner, consultant, holder of an equity or debt investment, lender or in any other manner, or capacity, including by the rendering of services or advice to any person), or lend her name (or any part or variant thereof) to, any Competing Business; 
(ii)    deal, directly or indirectly, with any customers, vendors, agents or contractors doing business with the Company or any of its Affiliates, or with any officer, director, employee of the Company or any of its Affiliates, in each case in any manner that is or could reasonably be expected to be competitive with the Company or any of its Affiliates;  
(iii)    take any action to solicit, encourage or induce any customer, vendor, agent or contractor doing business with the Company or any of its Affiliates, or any officer, director, employee or agent of the Company or any of its Affiliates:  
(A)    to terminate or alter in any manner adverse to the Company and its Affiliates her or its business, commercial, employment, agency or other relationship with the Company or such Affiliate (including any action to do business or attempt to do business with, or to hire, retain, engage or employ or attempt to hire, retain, engage or employ, any customer, vendor, agent or contractor, or any officer, director or employee, of the Company or any of its Affiliates);  

7

(B)    to become a customer, vendor, agent or contractor, or an officer, director or employee, of the Executive, the Executive’s Affiliates or any other Person; or  
(C)    to engage in any Competing Business; or  
(iv)    engage in or participate in, directly or indirectly, any business conducted under any name that shall be the same as or similar to the name of the Company or any of its Affiliates or any trade name used by any of them.  
Ownership by the Executive for investment purposes only of less than 2% of the outstanding shares of capital stock or class of debt securities of any Person with one or more classes of its capital stock listed on a national securities exchange or actively traded in the over-the-counter market shall not constitute a breach of the foregoing covenant.  The covenant contained in this Section 10 shall survive the termination or expiration of the Employment Period and any termination of this Agreement.  
  
(b)    As used in this Agreement, the term “Competing Business” means any transportation or other business that the Company or any of its Affiliates has engaged in at any time during the Employment Period in any city or county in any country, state or province of the United States, Canada or Mexico, including any such business directly or indirectly engaged in providing any of the following:  
(i)    intermodal marketing or rail or intermodal brokerage services (whether in connection with domestic or international shipments or customers);  
(ii)    highway brokerage services, including full trailer load, less than trailer load, trailer fleet management and depot operations services;  
(iii)    international freight transportation services, including ocean forwarding, custom house brokerage, ocean carrier services (including NVOCC operations), import/export air forwarding services, and special project services;  
(iv)    port and rail depot cartage services (whether in connection with domestic or international shipments or customers), and local and regional trucking services (including full truckload and less-than-truckload motor carrier services);  
(v)    freight consolidation and handling services, including third party warehouse, cross dock, consolidation, deconsolidation and distribution services;  
(vi)    comprehensive transportation management programs and services to third party customers, including supply chain and traffic management services, carrier rate and contract management services , logistics optimization planning, and vendor bid optimization; and 

8

(vii)    intermodal rail equipment (including double-stack rail car, container and chassis) supply and management services, including doublestack transportation services. 
Section 11.     Inventions Assignment.  
During the Employment Period, the Executive shall promptly disclose, grant and assign to the Company for its and its Affiliates’ sole use and benefit any and all inventions, improvements, technical information and suggestions reasonably relating to the business of the Company and its Affiliates (collectively, the “Inventions”) that the Executive may develop or acquire during the Employment Period (whether or not during usual working hours), together with all patent applications, letters patent, copyrights and reissues thereof that may at any time be granted for or with respect to the Inventions.  In connection with the previous sentence, the Executive shall, at the expense of the Company, including a reasonable payment based on the Executive’s last per diem earnings with the Company for the time involved if (a) the Executive is not then in the Company’s employ, or (b) if the Executive is not then receiving severance payments pursuant to Section 8(b) above, or (c) if the Executive has not otherwise received one or more severance payments with respect to such period (whether on a lump sum, pre-paid, or accelerated basis or otherwise), (i) promptly execute and deliver such applications, assignments, descriptions and other instruments as may be necessary or proper in the opinion of the Company to vest title to the Inventions and any patent applications, patents, copyrights, reissues or other proprietary rights related thereto in the Company and to enable it to obtain and maintain the entire right and title thereto throughout the world, and (ii) render such reasonable assistance to the Company as may be required in the prosecution of applications for said patents, copyrights, reissues or other proprietary rights, in the prosecution or defense of interferences or infringements that may be declared involving any said applications, patents, copyrights or other proprietary rights and in any litigation in which the Company may be involved relating to the Inventions.  The covenant contained in this Section 11 shall survive the termination or expiration of the Employment Period and any termination of this Agreement.  
Section 12.     Assistance in Litigation.  At the request and expense of the Company (including a reasonable payment, based on the Executive’s last per diem earnings, for the time involved if (a) the Executive is not then in the Company’s employ, or (b) if the Executive is not then receiving severance payments from the Company pursuant to Section 8(b), or (c) if the Executive has not otherwise received one or more severance payments from the Company with respect to such period (whether on a lump sum, pre-paid or accelerated basis or otherwise)) and upon reasonable notice, the Executive shall, at all times during and after the Employment Period, furnish such information and assistance to each of the Company and its Affiliates as the Company may reasonably require in connection with any issue, claim or litigation in which the Company or any of its Affiliates may be involved.  If such a request for assistance occurs after the expiration of the Employment Period, then the Executive will only be required to render such assistance to the Company and its Affiliates to the extent that the Executive can do so without materially adversely affecting the Executive’s other business obligations.  The covenant contained in this Section 12 shall survive the termination or expiration of the Employment Period and any termination of this Agreement.  
Section 13.     Expenses; Taxes.  Each party hereto shall bear her or its own expenses incurred in connection with this Agreement (including legal, accounting and any other third party fees, costs and 

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expenses and all federal, state, local and other taxes and related charges incurred by such party).  All references in this Agreement to remuneration, compensation and other consideration payable by the Company or any of its Affiliates hereunder to or for the benefit of the Executive or her heirs, representatives, or estate are to the gross amounts thereof before reductions, set-off, or deduction for taxes and other charges referred to below, and all such remuneration, compensation and other consideration shall be paid net of and after reduction, set-off and deduction for any and all applicable withholding, F.I.C.A., employment and other similar federal, state and local taxes and contributions required by law to be withheld by the Company or any such Affiliate.  
Section 14.     Representation.  The Executive hereby represents and warrants to the Company that (a) the execution, delivery and performance of this Agreement by the Executive do not breach, violate or cause a default under any agreement, contract or instrument to which the Executive is a party or any judgment, order or decree to which the Executive is subject, and (b) the Executive is not a party to or bound by any employment agreement, consulting agreement, noncompetition agreement, confidentiality agreement or similar agreement with any other Person.  
Section 15.     Entire Agreement; Amendment and Waiver.  This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes any and all prior and contemporaneous agreements and understandings between the Executive and the Company or any predecessor of the Company, or any of their respective Affiliates, with respect to the subject matter hereof.  Other than this Agreement, there are no other agreements or understandings continuing in effect relating to the subject matter hereof.  No waiver, amendment or modification of any provision of this Agreement shall be effective unless in writing and signed by each party hereto.  No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights or remedies arising by virtue of any such prior or subsequent occurrence.  
Section 16.     Notices.  
(a)    All notices or other communications pursuant to or contemplated by this Agreement shall be in writing and shall be deemed to be sufficient if delivered personally, sent by facsimile transmission, sent by nationally-recognized, overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):  
(i)    if to the Company, to it:  
c/o Pacer International, Inc.  
6805 Perimeter Drive
Dublin, OH  43016

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  Attention:  Vice President, Human Resources 
Telephone No.:  (614) 923-1400 
Facsimile No.:  (614)-717-4101
  
with copy to:  
  
Pacer International, Inc.  
11231 Phillips Industrial Blvd, Suite 200, Building 1  
Jacksonville, Florida  32256  
Attention:  General Counsel 
Telephone No.:  (904) 251-6075 
Facsimile No.:  (614) 717-4131
  
(ii)    if to the Executive, to her at her last known address contained in the records of the Company.  
(b)    All such notices and other communications shall be deemed to have been given and received (i) in the case of personal delivery, on the date of such delivery, (ii) in the case of delivery by facsimile, on the date of such delivery (if sent on a business day where sent, or if sent on other than a business day where sent, on the next business day where sent after the date sent), (iii) in the case of delivery by nationally-recognized, overnight courier, on the next business day where sent following dispatch, and (iv) in the case of mailing, on the third business day where sent next following such mailing.  In this Agreement, the term “business day” means, as to any location, any day that is not a Saturday, a Sunday or a day on which banking institutions in such location are authorized or required to be closed.  
Section 17.     Severability.  It is the desire and intent of the parties that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any provision of this Agreement is determined to be partially or wholly invalid, illegal or unenforceable in any jurisdiction, then such provision shall, as to such jurisdiction, be modified or restricted to the extent necessary to make such provision valid, binding and enforceable, or if such provision cannot be so modified or restricted, then such provision shall, as to such jurisdiction, be deemed to be excised from this Agreement; provided, however, that the legality, binding effect and enforceability of the remaining provisions of this Agreement, to the extent the economic benefits conferred upon the parties by virtue of this Agreement remain substantially unimpaired, shall not 

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be affected or impaired in any manner, and any such invalidity, illegality or unenforceability with respect to such provision in such jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  
Section 18.     Remedies.  The Executive acknowledges and agrees that the provisions of this Agreement (including Section 9, Section 10, Section 11, and Section 12) are of a special and unique nature, the loss of which cannot be adequately compensated for in damages by an action at law, and that the breach or threatened breach of any provision of this Agreement (including Section 9, Section 10, Section 11, and Section 12) would cause the Company irreparable harm.  The Executive further acknowledges and agrees that in the event of a breach or threatened breach of any of the covenants contained in this Agreement (including Section 9, Section 10, Section 11, and Section 12), the Company shall be entitled to immediate relief enjoining the same in any court or before any judicial body having jurisdiction over such a claim, without being required to post a bond or prove that monetary damages are inadequate.  All rights and remedies provided for in this Agreement are cumulative, are in addition to any other rights and remedies provided for by law, and may, to the extent permitted by law, be exercised concurrently or separately.  The exercise of any one right or remedy shall not be deemed to be an election of such right or remedy or to preclude the exercise or pursuit of any other right or remedy.  
Section 19.     Benefits of Agreement; Assignment.    The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, representatives, heirs and estates, as applicable.  This Agreement shall not be assignable by the Executive without the prior written consent of the Company (acting with approval its Board of Directors).  Except as expressly provided in this Agreement, this Agreement shall not confer any rights or remedies upon any Person other than the parties hereto and their respective successors, permitted assigns, representatives, heirs and estates, as applicable.  
Section 20.     Governing Law.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF OHIO, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF OHIO, OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF OHIO TO BE APPLIED.  
Section 21.     Jury Trial Waiver.  THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER THIS AGREEMENT OR ANY DOCUMENTS RELATED TO THE SUBJECT MATTER HEREOF.  EXECUTIVE UNDERSTANDS THAT THE WAIVER OF THE RIGHT TO A TRIAL BY JURY IS AN IMPORTANT RIGHT WHICH THE EXECUTIVE HEREBY FOREGOES.
Section 22.     Jurisdiction and Venue; Service of Process.  
(a)    The parties hereto agree that all disputes among them arising out of, connected with, related to, or incidental to the relationship established between them in connection with this Agreement shall be resolved exclusively by state or federal courts located in Franklin County, Ohio and any appellate 

12

court from any thereof, or by an arbitrator located in Franklin County, Ohio in such cases where both parties hereto have expressly agreed to binding arbitration.  
(b)    Each of the parties hereto hereby irrevocably and unconditionally submits, for herself or itself and her or its property, to the exclusive jurisdiction of any Ohio state court or federal court of the United States of America sitting in Franklin County, Ohio, and any appellate court from any thereof, in any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereunder or thereunder or for recognition or enforcement of any judgment relating thereto, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such suit, action or proceeding may be heard and determined in any such Ohio state court or, to the extent permitted by law, in any such federal court.  Each of the parties hereto agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  
(c)    Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent she or it may legally and effectively do so, any objection that she or it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereunder or thereunder in any Ohio state or federal court of the United States of America sitting in Franklin County, Ohio.  Each of the parties hereto hereby irrevocably waives, to the fullest extent she or it may legally and effectively do so, the defense of an inconvenient forum to the maintenance of such suit, action or proceeding in any such court.  
(d)    Each of the parties hereto hereby agrees that the mailing by certified or registered mail, return receipt requested, of any process required by any such court shall constitute valid and lawful service of process against them, without the necessity for service by any other means provided by law.  
Section 23.    Independence of Covenants and Representations and Warranties.  All covenants hereunder shall be given independent effect so that if a certain action or condition constitutes a default under a certain covenant, the fact that such action or condition is permitted by another covenant shall not affect the occurrence of such default, unless expressly permitted under an exception to such initial covenant.  In addition, all representations and warranties hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact that another representation or warranty concerning the same or similar subject matter is correct or is not breached shall not affect the incorrectness of or a breach of a representation and warranty hereunder.  
Section 24.     Interpretation and Construction; Defined Terms.  
(a)    The term “Agreement” means this Employment Agreement and any and all schedules, annexes and exhibits that may be attached hereto, as the same may from time to time be amended, modified, supplemented or restated in accordance with the terms hereof.  The use in this Agreement of the word “including” means “including, without limitation.”  The words “herein,” “hereof,” “hereunder,” “hereby,” “hereto,” “hereinafter,” and other words of similar import refer to this Agreement as a whole, and not to any particular article, section, subsection, paragraph, subparagraph or clause contained in, or any 

13

schedule, annex or exhibit that may be attached to, this Agreement.  All references to articles, sections, subsections, paragraphs, subparagraphs, clauses, schedules, annexes and exhibits mean such provisions of this Agreement and the schedules, annexes and exhibits that may be attached to this Agreement, except where otherwise stated.  The title of and the article, section, paragraph, schedule, annex and exhibit headings in this Agreement are for convenience of reference only and shall not govern or affect the interpretation of any of the terms or provisions of this Agreement.  The use in this Agreement of the masculine, feminine or neuter forms also shall denote the other forms, as in each case the context may require.  Where specific language is used to clarify by example a general statement contained in this Agreement, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.  The language used in this Agreement has been chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.  Accounting terms used but not otherwise defined in this Agreement shall have the meanings given to them under GAAP.  Unless otherwise provided in this Agreement, the measure of one month or year for purposes of this Agreement shall be that date of the following month or year corresponding to the starting date, except that, if no corresponding date exists, the measure shall be the next day of the following month or year (e.g., one month following February 8 is March 8, and one month following March 31 is May 1).  
(b)    The term “Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with such Person, where “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by contract or otherwise.  
(c)    The term “Person” shall be construed as broadly as possible and shall include an individual or natural person, a partnership (including a limited liability partnership), a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, a business, and any other entity, including a governmental entity such as a domestic or foreign government or political subdivision thereof, whether on a federal, state, provincial or local level and whether legislative, executive, judicial in nature, including any agency, authority, board, bureau, commission, court, department or other instrumentality thereof.  
Section 25.     Counterparts and Facsimile Execution.  This Agreement may be executed in two or more counterparts, and each such counterpart shall be an original instrument, but all such counterparts taken together shall be considered one and the same agreement, effective when one or more counterparts have been signed by each party and delivered to the other parties, it being understood that all parties need not sign the same counterpart.  Any signed counterpart delivered by facsimile shall be deemed for all purposes to constitute such party’s good and valid execution and delivery of this Agreement.  

14

Section 26.    Further Assurances.  The Executive hereby agrees, in consideration of the Company’s covenants and agreements set forth herein, that contemporaneous with the Executive's (or her heirs’, beneficiaries’ or estate’s in the event of her death) acceptance of amounts payable under Section 8, Executive shall for herself, her heirs, beneficiaries, estate, successors and assigns, enter into such other documents, agreements and instruments reasonably requested by the Company, including a separate settlement agreement prepared by the Company with those provisions deemed appropriate by the Company, including a release of the Company and its Affiliates from, and a waiver of, all claims (including those related to alleged wrongful discharge or alleged employment discrimination under any federal, state or local statute or regulation) and confirmation of the confidentiality, non-competition and other covenants of this Agreement that survive termination of employment.  The Executive hereby agrees that the Executive shall forfeit all rights to payments and benefits hereunder unless any Company property is returned pursuant to Section 8(d) and all documents, agreements and instruments specified in the previous sentence are signed, delivered and not revoked within sixty (60) days following the date of the Executive’s separation from service within the meaning of Section 409A.  If such property is so returned and such documents, agreements, and instruments are so signed, delivered and not revoked, then such payments or benefits shall be made or commence upon the sixtieth (60th) day following the Executive’s separation from service.  The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under the terms of this Agreement had such payments commenced immediately upon the Executive’s separation from service, and any payments made thereafter shall continue as provided herein.
Section 27.    Section 409A.  The provisions of this Agreement are intended and shall be interpreted and administered so as to not result in the imposition of additional tax or interest under Section 409A where applicable.  Without limiting the foregoing, this Agreement shall not be amended in a manner so as to result in the imposition of such tax or interest, any reference  to “termination of employment” or similar term shall mean an event that constitutes a “separation from service” within the meaning of Section 409A, and any reimbursement of expenses shall occur no later than the end of the calendar year following the calendar year in which is the expense is incurred (or such earlier date as applies under the Company’s business expense reimbursement policy).

[Remainder of page intentionally left blank.]  
  
  

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IN WITNESS WHEREOF, the parties have executed and delivered this Employment Agreement effective as of the date first written above.  
THE COMPANY:  
  
PACER INTERNATIONAL, INC. 
  
  
By:__ /s/ Florian Kete_________________________  
Name:  Florian Kete
Title:  Vice President, Human Resources
  
  
EXECUTIVE:  
  
  
/s/ Julie A. Krehbiel___________________________   
Julie A. Krehbiel

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