Document:

Exhibit10322014BonusPlanv10SEC

Exhibit 10.32

PACER INTERNATIONAL, INC.
2014 PERFORMANCE BONUS PLAN 

I.    BONUS PLAN

The Pacer International, Inc., 2014 Performance Bonus Plan (the “Bonus Plan”) is a performance incentive plan providing compensation payments that are contingent upon achieving pre-determined performance objectives or criteria with respect to the 2014 fiscal year period of Pacer International, Inc. (“Pacer International”), and its subsidiaries (collectively with Pacer International, the “Company”).  The Bonus Plan does not include payment or provision for salary increases (whether based on merit or otherwise), profit-sharing, savings or retirement plans, or recognition awards.

The Bonus Plan will be communicated by the senior management of the Company’s various lines of businesses (“LOBs”) or corporate units (Finance, Legal, Human Resources, IT, etc.) to their respective associates; among other things these communications will outline the Bonus Plan’s performance objectives for the specific unit as well as for the entire Company on a consolidated basis.  The objective of this communication process is to create a “line of sight” link between the Bonus Plan’s performance objectives and the success of the LOBs and the overall Company.

The Bonus Plan is a “pool-funded” program with monthly accruals for all LOBs booked at the corporate level based on the LOBs and the Company’s actual performance against the Bonus Plan’s performance objectives during the relevant period.  These accrual decisions are determined by the Chief Executive Officer and Chief Financial Officer of Pacer International, as appropriate.

The Bonus Plan’s objectives are to:
		
	•
	align individual behavior with stated business goals and objectives;

		
	•
	encourage achievement of specific business goals and objectives;

		
	•
	improve LOB, support department, and overall Company performance; and

		
	•
	attract and retain critical talent for the Company.

The performance objectives that are required to be satisfied in order for the Company and each LOB to award and pay bonuses with respect to the 2014 calendar year are comprised of LOB gross margin, contribution margin, volume or operating income (other similar metrics) targets and Company‐wide consolidated operating income targets; these objectives are established by Company management and approved by the Compensation Committee of the Pacer International Board of Directors (the “Compensation Committee”) based on the Company’s 2014 operating plan and budget approved by the Board of Directors.  Individual associates who are eligible to participate in the Bonus Plan are assigned a target bonus opportunity expressed as a percentage of annual base salary.

Distribution of bonuses will occur after the determination and funding of the LOBs and Corporate bonus pools, and is expected to take place in February of the following year.  Each award under this Bonus Plan to an individual who is a covered employee under Section 162(m) of the Internal Revenue 

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Exhibit 10.32

Code, is designated as a Performance Cash Incentive under the Pacer International 2012 Omnibus Incentive Plan (the “Omnibus Plan”), and will be subject to the applicable rules under the Omnibus Plan for such type of Award.  To maintain the deductibility of Performance Cash Incentives under the Bonus Plan pursuant to Section 162(m) of the Internal Revenue Code, the distribution of bonuses to the Pacer International Chief Executive Officer and four other most highly compensated officers of the Company will not occur until the Compensation Committee has certified that the performance objectives for the payment of such bonuses have been met.

II.     INDIVIDUAL BONUS AWARDS

Once the LOB and the Corporate Bonus Pools have been determined, individual bonus awards are determined based on a combination of an individual’s performance and his or her contribution to his or her LOB.  The Corporate Human Resources Department will provide the various LOB management teams with guidelines on assessing an individual’s performance and contribution and making bonus distributions once the LOB bonus pools have been determined.  Individual bonus distributions should be based on performance and contribution, and those individuals who perform or contribute at a higher level should be recognized for their performance and contribution.  

		
	•
	As noted, actual bonus awards should be determined based on two components, individual performance and contribution to the success of the LOB (or support department within the LOB).  Associates who receive a “Misses or Misses +” rating on their performance reviews will not be eligible for any portion of their bonus for the period in which they received the rating. 

		
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	An eligible associate must be an active associate at the time the bonus distribution occurs to be eligible to receive the bonus.  For purposes of the Bonus Plan, any associate who has given notice prior to the distribution date of intent to end employment after the distribution date shall not be considered an active associate and shall not be entitled to receive a bonus.  An associate who retires in the year in which bonuses are earned and is currently retired at the time the bonus is paid may be entitled to a partial bonus payment pro-rated through the date of retirement in the sole discretion of the Chief Executive Officer of Pacer International.  An associate who is on approved FMLA or other leaves of absence (not protected under FMLA) may also be entitled to a bonus payment upon his or her return from leave as required by law. 

		
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	Only full-time associates are eligible to participate in the Bonus Plan.  An associate with less than one year of employment who began their employment before October 1 of that year may be eligible for a pro-rated bonus.  Associates hired after October 1 will not be eligible for a bonus until the following plan year, assuming they qualify under the terms and conditions of the plan for that year.  Bonus payments will be determined by applying the target bonus percentage in effect at the end of the fiscal year to the associate’s base salary earned during the bonus period.  The Company shall deduct from all cash distributions under the Bonus Plan any taxes required to be withheld by federal, state, local or foreign government or taxing authority and 401k contributions.

III.    GENERAL TERMS

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Exhibit 10.32

Nothing in the Bonus Plan shall confer upon any participant any right or expectation to continue in the Company’s employ, or to interfere in any manner with the absolute right of the Company to change or terminate a participant's employment at any time for any reason.  Neither the Bonus Plan nor any bonus award or right to receive any bonus award shall create or be construed to create a trust or separate fund of any kind or any fiduciary relationship between the Company and any participant or other person.  Any right to receive payments from the Company under the Bonus Plan shall be no greater than the right of an unsecured general creditor of the Company.

During a participant’s lifetime, each bonus award, and each right under any bonus award, shall be exercisable only by the participant or, if permissible under applicable law, by the participant’s guardian or legal representative.  No bonus award, and no right under any bonus award, may be assigned, alienated, pledged, attached, sold or otherwise transferred to, or encumbered by a participant other than by will or by the laws of descent and distribution and any such purported transfer or encumbrance shall be void and unenforceable against the Company.

The Bonus Plan is a discretionary plan provided by the Company, and it may be amended, modified or supplemented at any time and from time to time, and may be canceled or terminated at any time, in the sole discretion of the Compensation Committee.  In addition to, or in lieu of, the bonus formulas contained in the Bonus Plan, in the event of special or extraordinary circumstances management may recommend to the Compensation Committee retention, incentive or other bonus grants or awards, but the grant, award or payment thereof, including any terms and conditions relating thereto, shall be in the sole discretion of the Compensation Committee.  The Bonus Plan shall be administered by or under the direction and supervision of the Chief Executive Officer of Pacer International, whose determinations shall be final (subject to the approval of the Compensation Committee to the extent required by applicable law or securities exchange listing requirements or to maintain deductibility under Internal Revenue Code Section 162(m)).  Any such amendments, modifications, supplements or determinations shall be made in a manner to maintain the deductibility of compensation paid under the Bonus Plan pursuant to Internal Revenue Code Section 162(m) to the extent such regulation would otherwise impair the deductibility of compensation under the Bonus Plan.

The Bonus Plan is intended, and shall be interpreted, to provide compensation that is exempt from IRS Code Section 409A under the short-term deferral rule.  The Company does not warrant that the Plan will comply with IRS Code Section 409A with respect to any Bonus Plan participant or with respect to any payment, however.  In no event shall the Company nor any director, officer, or associate of the Company nor any member of the Compensation Committee be liable for any additional tax, interest, or penalty incurred by a participant as a result of the Bonus Plan’s failure to satisfy the requirements of IRS Code Section 409A, or as a result of the Bonus Plan’s failure to satisfy any other requirements of applicable tax laws.

No member of the Board of Directors or any committee of the Board of Directors of Pacer International or any of its subsidiaries, nor any officer of Pacer International or any of its subsidiaries delegated authority under the Bonus Plan, shall be liable for any action, omission or determination made in good faith by such member, by the Board of Directors or any committee of the Board of Directors of Pacer 

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Exhibit 10.32

International or any of its subsidiaries, or by any such officer with respect to the Bonus Plan or any bonus award.  

The Bonus Plan shall be construed under the laws of the State of Tennessee, to the extent not preempted by federal law, without reference to the principles of conflict of laws.  

    

4Exhibit1048SutherlandAmdmt2013EVPIntermodalOpnspromotionSEC

Exhibit 10.48

 

PERSONAL AND CONFIDENTIAL

November 5, 2013 

Frank Sutherland
8307 Riverside Dr.
Powell, OH  43065

Dear Frank: 
This letter agreement documents recent agreed-to changes to your employment relationship with Pacer International, Inc. (together with its successors and assigns, the “Company”) and its subsidiaries.  In consideration of your continued employment by the Company or its subsidiary, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and you, by your signature and acceptance below, hereby agree as follows:
		
	1.
	You have signed an Employment Agreement with the Company or one of its subsidiaries dated as of August 25, 2008 (together with any previous amendments, the “Agreement”) and you are a participant in the special management retention program described in a letter agreement dated August 27, 2008 (the “CIC Letter”) providing for enhanced severance benefits upon termination of employment under specified circumstances within 18 months after a Change in Control (as defined in Exhibit A to the CIC Letter).  

		
	2.
	The following changes reflecting your promotion will be effective as of November 3, 2013:  

		
	a.
	Your title will be Executive Vice President, Intermodal Operations and Section 1 of the Employment Agreement hereby is amended accordingly. 

		
	b.
	Your annual Base Salary will be increased from $225,000 to $295,000 per year commencing November 3 through December 9, 2013 and increasing to $310,000 per year commencing December 10, 2013, and Section 4(a) of the Employment Agreement hereby is amended accordingly. 

		
	c.
	The targeted bonus percentage under the Company’s annual cash bonus plan will be changed from the current percentage of twenty-five percent (25%) to fifty percent (50%) of your annual Base Salary, and Section 4(b) of the Employment Agreement hereby is amended accordingly.  For the avoidance of doubt, your targeted bonus percentage for the 2013 annual bonus plan will be 50% of the Base Salary in effect as of the end of the fiscal year.  

		
	d.
	The amount of your car allowance will be increased to $900 per month, or $10,800 per year.

		
	3.
	This letter describes special arrangements that are not available to all Company employees.  You covenant and agree to keep the existence and terms of this letter in the strictest confidence, consistent with the restrictions on disclosure set forth in the Employment Agreement and the CIC Letter.  You acknowledge and agree that your failure to observe, or your breach of this covenant and agreement, will cause the Company and its subsidiaries irreparable harm, and in such case the terms and provisions of paragraph 2 above will be null and void in addition to all other rights and remedies available to the Company for such failure or breach.

		
	4.
	Except as expressly provided in this letter, the terms of your Employment Agreement and CIC Letter shall remain in full force and effect in accordance with their respective terms and provisions.

		
	5.
	This letter may be signed 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, 

Frank Sutherland
November 5, 2013
Page 2 of 2

effective when one or more counterparts have been signed by each party and delivered to the other party, it being understood that all parties need not sign the same counterpart.  Any signed counterpart delivered by facsimile, email or similar electronic means shall be deemed for all purposes to constitute such party’s good and valid execution and delivery of this letter.  
Please indicate your acknowledgment and acceptance of, and agreement with, the terms of this letter by signing and printing your name and dating the enclosed copy of this letter in the spaces provided below and returning it to me.  
Sincerely,
/s/ Daniel W. Avramovich
Daniel W. Avramovich 
Chief Executive Officer 

Acknowledged, Accepted And Agreed To: 

Signature:     /s/ F. Franklin Sutherland                     

Name: F. Franklin Sutherland    
Date:     12/2/13

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