Document:

Consulting Agreement between CNF Inc. and Gregory L. Quesnel

 Exhibit 10.36 
  
 CONSULTING AGREEMENT 
  
 This Consulting Agreement (“Agreement”) is between CNF Inc. (“Company”) and Gregory L. Quesnel (“Executive”). The parties agree that the
effective date of this Agreement (“Effective Date”) shall be February 18, 2004. 
  
 WHEREAS Executive has informed Company of his decision to retire on July 6, 2004, and 
  
 WHEREAS Executive has assured Company of his commitment to full cooperation with Company during a period of transition, and 
  
 WHEREAS Company desires that Executive remain until his intended retirement date and to
retain Executive for consulting services following his retirement, 
  
 NOW,
THEREFORE, Company and Executive further agree as follows: 
  

	1.	Compensation, Fees and Benefits to Executive.    Company shall provide to Executive: 

  

	 	a.	For the period from the Effective Date through July 6, 2004, continued employment with benefits and current deductions authorized by Executive, including participation in
Company’s health plan, retirement plans, Deferred Compensation Plan, and life insurance plans, at his current annual salary which, on a weekly basis computes to Fourteen Thousand Three Hundred Eighty Eight dollars ($14,388) per week, less
withholdings required by law, said salary to be paid through Company’s payroll system; 

  

	 	b.	Consulting fees in the total amount of One Million dollars ($1,000,000), payable in four quarterly installments of Two Hundred Fifty Thousand dollars ($250,000) each, commencing on
October 5, 2004 and ending on July 5, 2005, said payments to be made without withholdings or deductions, but reported for tax purposes as Company determines is required by law; provided, however that Company’s obligation to make the payments
provided in this Section 1.b. shall be subject to the provisions in Section 3.b., below, and contingent on Executive’s compliance with his obligations as provided in Sections 3 and 4, below; 

  

	 	c.	Reimbursement for tax preparation services to be obtained by Executive during 2005 and 2006 for income to be reported by Executive for 2004 and 2005, respectively, in a total amount
not to exceed Four Thousand Five Hundred dollars ($4,500) for each of such years, in accordance with Company’s established annual allowance for such services; provided, however that Company’s obligation to extend the benefit provided in
this Section 1.c. shall be contingent on Executive’s compliance with his obligations as provided in Sections 3 and 4, below; 

  

	 	d.	Reimbursement for estate and financial planning services to be obtained by Executive, in an amount not to exceed Six Thousand dollars ($6,000), in accordance with Company’s
established allowance for such services, such reimbursement to be available until Executive has exhausted said allowance; provided, however that Company’s obligation to extend the benefit provided in this Section 1.d. shall be contingent on
Executive’s compliance with his obligations as provided in Sections 3 and 4, below; 

  

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	 	e.	Continued access to Company’s computer system and computer support services during the period of the consultancy established pursuant to Section 3, below; provided, however
that Company’s obligation to extend the benefit provided in this Section 1.e. shall be contingent on Executive’s compliance with his obligations as provided in Sections 3 and 4, below; and 

  

	 	f.	COBRA notice within the time required by law following Executive’s last day on Company’s payroll. 

  

	2.	Executive’s Existing Benefits.    In recognition of the fact that prior to the Effective Date, Executive already earned or accrued certain rights for
compensation or benefits, and that he will earn or accrue certain additional rights or benefits between the Effective Date and his retirement date of July 6, 2004, the parties further agree that: 

  

	 	e.	On or before July 6, 2004, Company shall pay Executive his earned and accrued but unused vacation pay in the amount of One Hundred Sixty-Three Thousand Seven Hundred Forty-One
dollars ($163,741), less withholdings required by law, said payment to be paid through Company’s payroll system; provided, however, that the amount specified in this Section 2.a. shall be reduced by Two Thousand Eight Hundred Seventy-Eight
dollars ($2,878) for each day of vacation used by Executive between the Effective Date and July 5, 2004; and 

  

	 	e.	Except as expressly provided herein, nothing in this Agreement shall be construed to limit, diminish, enlarge, or otherwise modify any rights Executive has or, by July 6, 2004 will
have under the Company’s retirement plans, supplemental retirement plan, health plan, life insurance plans, long term care insurance plan, existing compensation plans, or discontinued plans in which Executive was a participant, but as to which
Executive retains rights, including the Company’s: Value Management Plan for the three-year cycles ending December 31, 2004, December 31, 2005, and December 31, 2006; Deferred Compensation Plan for the years 1993 through 2004, inclusive; the
Company’s Stock Appreciation Rights Plan; the Company’s Long Term Incentive Plan of 1988; the Company’s 1997 Equity and Incentive Plan; and the Company’s annual incentive compensation plan for 2004, pursuant to the terms of such
plan, and subject to such plan’s provisions regarding a retired employee’s right to receive pro-rata payments based upon retirement during the incentive compensation plan year. 

  

	3.	Consulting Services by Executive.    In consideration for the compensation specified in Section 1.b., above, Executive understands and agrees that:

  

	 	a.	He shall, as required by Company, consult with and advise Company regarding Company’s strategic plans, growth opportunities, trends and issues in the logistics, supply chain
management and transportation industries, legislative and regulatory trends and issues affecting Company, and such other matters as may be requested by Company; 

  

	 	b.	The consultancy established by Section 3.a., above, shall be for an initial term of One (1) year, commencing on July 6, 2004, and continuing through July 5, 2005, and may be
terminated by Company only for breach by Executive of the obligations established by this Section 3 and Section 4.a., below; 

  

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	 	c.	He shall not, during the term of the consultancy and within the United States or in any place outside the United States where the Company or any of its subsidiaries or affiliates
transacts business, seek or accept engagements with or employment by any person or entity which competes with Company in the logistics, supply chain management or freight transportation industries; 

  

	 	d.	He will devote such time as may be required in the performance of services required by Section 3.a., above, and at such locations as Company may require, but shall not be required
to devote more than one hundred fifty (150) hours, excluding travel time, in each calendar quarter; 

  

	 	e.	The consultancy established by Section 3.a., above, may be extended beyond its initial term only by a writing executed by both parties, and that the scope and other terms and
conditions of any subsequent term shall be set forth in the writing establishing that subsequent term. 

  

	 	f.	He shall keep confidential all information provided to him by Company, and all information provided by him to Company, in connection with his performance of his obligations under
this Section 3, and that all materials furnished by Company to him and materials developed by him in the performance of his obligations under this Section 3 shall be the exclusive property of Company; 

  

	 	g.	The compensation to be paid to him pursuant to Section 1.b., above, shall be made after the conclusion of each calendar quarter of the term of the consultancy, as provided in
Section 1.b., above; and 

  

	 	h.	That Company shall reimburse him for all reasonable costs and travel expenses incurred by him in performing the consulting services required by Company. 

  

	4.	Additional Commitments by Executive.    Executive further agrees that: 

  

	 	a.	Company’s obligation to provide the compensation specified in Section 1.b., 1.c., 1.d. and 1.e., above is contingent upon his (i) resignation as an officer of Company, as a
member of Company’s Board of Directors (“Board”), and as an officer and member of the Board of Directors or Board of Managers of any of Company’s subsidiaries or affiliates (“Subsidiary Boards”) effective as of July 6,
2004, or on such earlier date as may be agreed by the parties, (ii) to execute this Agreement, and (iii) to execute any other documents as reasonably requested by Company in connection with his decision to resign or in connection with Company’s
obligations to continue the consultancy established by Section 3, above, for any period of time (provided, however, that no such other documents shall provide for any type or form of compensation to Executive); accordingly, Executive agrees that he
shall, when requested by the Board, and as a condition precedent to his receipt of the compensation specified in Section 1.b., 1.c., 1.d. and 1.e., above, document his resignation as an officer of Company and as a member of the Board, effective as
of July 6, 2004, or on such earlier date as may be agreed by the parties, and execute such other documents as may be required pursuant to this Section 4.a.; 

  

	 	b.	 Not later than July 6, 2004, or such earlier date as may be agreed by the parties, he will return to Company any and all Company documents or records that are or
were in his possession or that are or were in the possession of any third 

  

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parties under his control, including all copies of any such documents or records, whether such documents or records were maintained in hard copy, on computer
disks, or in some other manner, or, alternatively, if no such documents or records are in his possession or in the possession of any third parties under his control on July 6, 2004, or on such earlier date as may be agreed by the parties, he will
provide written assurance to Company that he has no such documents or records and that no third party under his control has, to his knowledge, any such documents or records; provided, however, that Executive shall, with the prior consent of Company,
retain custody of such documents or records he may need in connection with the performance of his consulting obligations, as provided in Section 3, above; 

  

	 	c.	He will not at any time, without the prior written consent of Company, either directly or indirectly use, divulge or communicate to any person or entity, in any manner, any
confidential or proprietary information of any kind concerning any matters affecting or relating to Company’s or its subsidiaries’ or affiliates’ business, except if the disclosure (i) is required by law or (ii) disclosure involves
information which had been lawfully revealed to Executive by a third party having no confidentiality obligation to Company. This prohibition against disclosure includes, but is not limited to, Company’s and its affiliates’ technical data,
systems and programs, financial and planning data, business development or strategic plans or data, marketing strategies, software development, product development, pricing, customer information, personnel information, trade secrets, and other
confidential business information. Executive agrees to take every reasonable step to protect such confidential or proprietary information from being disclosed to third parties. If Executive is required, or believes he may be required to disclose
such confidential or proprietary information pursuant to subpoena or other legal process, he will give Company prompt notice so that Company may object or take steps to prevent such disclosure in its discretion; and 

  

	 	d.	He will, for so long as Company may require, fully cooperate with Company in handling its legal and other matters in which he was involved or about which he has knowledge, such as
answering inquiries from Company, testifying in depositions and trials, and engaging in other efforts on behalf of Company and its subsidiaries and affiliated companies. Executive will make himself available upon reasonable notice at reasonable
times and places in order to prepare for giving testimony, and to testify at deposition, trial or other legal proceedings, without Company having to serve him with a subpoena. Executive expressly agrees that he will not be entitled to compensation,
of any type or in any amount, for any of his time expended in such proceedings; provided, however, that Company agrees to reimburse Executive for reasonable out-of-pocket costs and expenses he incurs as a result of his obligation to cooperate with
Company pursuant to this Section 4.d. 

  

	5.	 Integration.    The parties understand and agree that the preceding Sections recite the sole compensation to be provided by Company to
Executive, from and after the Effective Date; that no representation or promise concerning compensation for Executive has been made by Company, by any of its subsidiaries or affiliates, by the Board or any committee or member of the Board, or by any
agent or representative acting on its or their behalf, except as expressly set forth in this Agreement; and that all agreements and understandings between the parties concerning compensation to be provided to Executive are embodied and expressed in
this Agreement. This Agreement shall supersede all prior or contemporaneous agreements and understandings among Executive and Company, whether written or oral, express or implied, with respect to compensation of any kind or type to be provided to
Executive for any reason 

  

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or purpose, except to the extent that the provisions of any such agreement or plan have been expressly referred to in Section 2, above, as having continued
effect. 

  

	6.	Assignment; Successors and Assigns.    Executive agrees that he will not assign, sell, transfer, delegate, or otherwise dispose of, whether voluntarily or
involuntarily, or by operation of law, any rights or obligations under this Agreement. Any such purported assignment, transfer, or delegation shall be null and void. Executive represents that he has not previously assigned or transferred any rights
or obligations under this Agreement. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective heirs, successors, attorneys, and permitted assigns. This Agreement shall not
benefit any other person or entity except as specifically enumerated in this Agreement. 

  

	7.	Severability.    If any provision of this Agreement, or its application to any person, place, or circumstance, is held by an arbitrator or a court of
competent jurisdiction to be invalid, unenforceable, or void, such provision shall be enforced to the greatest extent permitted by law, and the remainder of this Agreement and such provision as applied to other persons, places, and circumstances
shall remain in full force and effect. 

  

	8.	Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State of California. 

  

	9.	Interpretation.    This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of
example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit nor against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should
be ignored in the interpretation of the Agreement. 

  

	10.	Attorneys Fees and Costs.    The parties agree that in the event of a breach of this Agreement or any provision thereof, the party who is found not to be
in breach shall be entitled to recover costs and reasonable attorneys fees. 

  

	11.	Arbitration of Disputes/Venue.    In the event of any controversy arising from or concerning the interpretation or application of this Agreement,
including the arbitrability of such controversy, whether such controversy is grounded in common or statutory law, the parties agree that such controversy shall be resolved exclusively through binding arbitration in San Francisco, California before a
single neutral arbitrator selected jointly by the parties. The parties to the arbitration shall have all rights, remedies, and defenses available to them in a civil action for the issues in controversy. The parties shall be jointly responsible for
the fees and expenses of the arbitrator. If, for any legal reason, a controversy arising from or concerning the interpretation or application of this Agreement cannot be arbitrated as provided hereinabove, the parties agree that any civil action
shall be brought in the United States District Court for the Northern District of California, San Jose Division, or, only if there is no basis for federal jurisdiction, in the Superior Court of the State of California in and for the County of Santa
Clara. The parties further agree that any such civil action shall be tried to the court, sitting without a jury. The parties knowingly and voluntarily waive trial by jury. 

  

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	12.	Representation by Counsel.    The parties acknowledge that (i) they have had the opportunity to consult counsel in regard to this Agreement, (ii) they
have read and understand the Agreement and they are fully aware of its legal effect; and (iii) they are entering into this Agreement freely and voluntarily, and based on each party’s own judgment and not on any representations or promises made
by the other party, other than those contained in this Agreement. 

  
 The parties have duly executed this Agreement as of the dates set forth below. 
  

									
			
	/s/    GREGORY L. QUESNEL	 	 	 	Dated: February 18, 2004
	
	 	 	 	 	 
	Gregory L. Quesnel	 	 	 	 	 	 
			
	 CNF Inc.
	 	 	 	 
				
	By:	 	/S/    W. KEITH KENNEDY, JR.  	 	 	 	Dated: February 18, 2004
	 	 	
	 	 	 	 	 
	 	 	 W. Keith Kennedy, Jr.
 Chairman of the Board
	 	 	 	 	 	 

  

 6CNF Inc. Summary of Incentive Compensation plans for 2004.

 Exhibit 10.37 
  
 CNF INC. 
 SUMMARY OF INCENTIVE COMPENSATION
PLANS FOR 
 2004 
  
 For 2004, CNF Inc. and certain of its subsidiaries (each a “CNF Company”) have adopted short-term incentive compensation plans that provide for annual incentive
compensation to be paid to plan participants if certain performance goals are met by the applicable CNF Company. This document summarizes the general terms of those plans. The plans vary in terms of the performance measures to be met, and the amount
of compensation to be paid, but generally contain the terms as described below. 
  
 THE PLANS 
  
 In order to motivate eligible employees to perform more
effectively and efficiently, each CNF Company has established a short-term incentive compensation plan (Plan), under which participants are eligible to receive short-term incentive compensation payments based upon calendar year 2004 Incentive
Performance Goals. 
  
 DESIGNATION OF PARTICIPANTS 
  
 Participation in each Plan is primarily limited to full-time non-contractual employees of the
applicable CNF Company. A master list of each Plan’s participants is maintained in the office of the President of the applicable CNF Company. 
  
 ELIGIBILITY FOR PAYMENT 
  
 Participants generally commence participation in the Plans on January 1, 2004. Eligible employees who are employed by a CNF Company after January 1 commence participation at the beginning of the first full calendar
quarter after joining the CNF Company. Calendar quarters begin January 1, April 1, July 1, and October 1 or the first working day thereafter. A participant who commences participation in the Plan during the 2004 Plan year, and who participates less
than four full quarters, receives a pro rata payment based on the number of full calendar quarters of Plan participation. 
  
 Subject to the following exceptions, no participant is eligible to receive any payment under a Plan unless on the date the payment is actually made that person is then
currently (i) employed by a CNF Company and (ii) a Plan participant. 
  
 EXCEPTION 1. A Plan participant who is employed by a CNF Company through December 31, 2004 but leaves that employment or otherwise becomes ineligible after December 31, 2004 but before the final payment is made
relating to 2004, unless terminated for cause, is entitled to receive payments under the Plan. 

 EXCEPTION 2. An appropriate pro rata payment will be made (1) to a Plan participant who
retires prior to December 31, 2004 pursuant to the CNF Inc. Retirement Plan and who, at the time of retirement, was a participant in the Plan, (2) to the heirs, legatees, administrators or executors of a Plan participant who dies prior to December
31, 2004 and who, at the time of death, was a participant in the Plan, (3) to a Plan participant who is placed on an approved leave prior to December 31, 2004, or (4) to a Plan participant who is transferred to another CNF Company and who remains an
employee through December 31, 2004. 
  
 METHOD OF PAYMENT 
  
 Each Plan participant is assigned an incentive participation factor as a percent of annual
compensation. The incentive participation factor is indexed to specific performance goals such as revenue, profit, service, etc. 
  
 Minimum and incentive factor performance goals are established separately for each Plan. Participants are not entitled to any payments under the Plan until the minimum
performance goal is achieved. Incentive compensation for the assigned goals will be earned on a pro rata basis for accomplishments between the minimum level and the incentive plan goals and may be earned at a different rate for performance over the
incentive plan goal. 
  
 The maximum payment that any Plan participant may receive
is 200% of incentive compensation factor. In addition, the aggregate amount of payments to all participants is limited to the amount of a specified pool of funds. 
  
 DATE OF PAYMENT 
  
 The President of each CNF Company may authorize a partial payment of the estimated annual incentive compensation earned under the Plan to be made in December 2004. The
final payment to participants, less any previous partial payment, is to be made on or before March 15, 2005. 
  
 INCENTIVE PERFORMANCE GOALS 
  
 Incentive
Performance Goals are defined by each Plan but generally consist of profits equal to earnings before deducting any amounts expensed under a Company and/or qualified subsidiary incentive plans, before deducting income taxes and for some plans exclude
interest income and expense. Incentive Performance Goals may also include specific levels of revenue, profit, service or other measurable factors. The Compensation Committee of the CNF Board of Directors reserves the right to define and determine
whether an extraordinary item is to be included in the calculated profit figure. 

 ANNUAL COMPENSATION 
  
 Annual Compensation for incentive purposes for each Plan participant is that participant’s annualized salary before any incentive or other special compensation
(including long term disability insurance plan payments) as of the first pay period following the date the participant becomes eligible to participate in this Plan. For certain Plans, the annualized salary is based on the last pay period of the
calendar year. The term “special compensation” used herein does not include deferred salary arrangements wherein the participant could have chosen to receive the deferred salary in the Plan year. 
  
 LAWS GOVERNING PAYMENTS 
  
 No payment shall be made under this Plan in an amount that is prohibited by law. 
  
 AMENDMENT, SUSPENSION, AND ADMINISTRATION OF PLAN 
  
 The Board of Directors of the CNF Company may at any time amend, suspend, or terminate the
operation of the Plans, by thirty-day written notice to the Plan participants, and has full discretion as to the administration and interpretation of this Plan. No participant in this Plan shall at any time have any right to receive any payment
under this Plan until such time, if any, as any payment is actually made. 
  
 DURATION OF PLANS 
  
 The Plans are for the calendar year 2004 only.

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