Amendment No. 2 to Pacer International, Inc. 1999 Stock Option Plan

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Summary

This amendment updates the Pacer International, Inc. 1999 Stock Option Plan. It revises how the plan is administered, updates tax withholding procedures, changes the amendment process, and shifts the governing law from Delaware to Tennessee. The amendment also adjusts share numbers and option prices to reflect a two-for-one stock split and updates performance targets for certain stock option tranches. The changes are effective as specified and impact how options are granted, administered, and exercised under the plan.

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EX-10.50 13 dex1050.txt AMENDMENT NO. 2 TO PACER INTERNATIONAL, INC Exhibit 10.50 AMENDMENT NO. 2 TO THE PACER INTERNATIONAL, INC. 1999 STOCK OPTION PLAN 1. Amendment of Plan and Exhibits. The following amendments to the Pacer International, Inc. 1999 Stock Option Plan, as amended by the First Amendment thereto dated September 8, 2000 (the "First Amendment") (as so amended, the "Plan") are adopted, effective as hereinafter provided. A. Section 3(a) of the Plan is hereby amended by deleting the first two sentence thereof and inserting in their place: "This Plan shall be administered by a committee (the "Committee") of the Board of Directors of the Company (the "Board"), appointed from time to time by the Board; provided, however, that following the date on which the Common Stock is registered under the Exchange Act, in order to permit officers and directors of the Company to be exempt from the provisions of Section 16(b) of the Exchange Act with respect to transactions pursuant to this Plan, each person appointed to the Committee, at the effective date of his or her appointment to the Committee shall, to the extent practicable, be a "Non-Employee Director" within the meaning of Rule 16b-3 ("Rule 16b-3") promulgated by the Securities and Exchange Commission under the Exchange Act." B. Section 15 of the Plan is hereby deleted in its entirety and replaced with the following: " 15. WITHHOLDING TAXES When taxable compensation is realized by an Optionee in respect of an Option, such Optionee shall satisfy all applicable federal, state or local taxes required by law to be withheld at such time); provided, however, that with respect to persons subject to Section 16 of the Exchange Act, any such withholding arrangement shall be in compliance with any applicable provisions of Rule 16b-3 promulgated under Section 16 of the Exchange Act. The Option Agreement shall specify the manner in which the withholding obligation shall be satisfied with respect to the Option." C. Section 16(c) of the Plan is hereby deleted in its entirety and replaced with the following: "(c) Amendment of Plan. This Plan may be amended by the shareholders of the Company. This Plan may also be amended by the Board or the Committee, including, without limitation, to the extent necessary to qualify any or all outstanding Options granted under this Plan or Options to be granted under this Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 422 of the Code, to the extent necessary to ensure the qualification of this Plan under Rule 16b-3, at such time, if any, as the Company has a class of stock registered pursuant to Section 12 of the Exchange Act, and to the extent necessary to qualify the shares of Common Stock issuable upon exercise of any outstanding Options granted, or Options to be granted, under this Plan for listing or admission for trading on any securities exchange or automated quotation system. Any amendment approved by the Board or the Committee which is of a scope that requires shareholder approval under applicable law or in order to ensure favorable federal income tax treatment for any Incentive Stock Options or requires shareholder approval in order to ensure the compliance of this Plan with Rule 16b-3 at such time, if any, as the Company has a class of capital stock registered pursuant to Section 12 of the Exchange Act, shall be subject to obtaining such shareholder approval. Any modification or amendment of this Plan shall not, without the consent of an Optionee, adversely affect his or her rights under an Option previously granted to him or her. With the consent of the Optionee affected, the Committee may amend such Optionee's outstanding Option in a manner which may be materially adverse to such Optionee but which is not inconsistent with this Plan. D. Section 16(d) of the Plan is hereby amended by deleting each reference to "State of Delaware" in the said paragraph and inserting in their place "State of Tennessee." E. In order to give effect to the two for one stock split of the Common Stock in the form of a stock dividend declared by the Board of Directors and effective as of _________, 2002, in accordance with and pursuant to Section 11 of the Plan: (i) Section 4(b) of the Plan is hereby amended to delete the reference to "832,000 Shares" and inserting in its place "1,664,000 Shares"; (ii) Section 4(e) of the Plan is hereby amended to delete the references to "277,345 Shares", "277,336 Shares" and "277,319 Shares" and inserting in their place "554,690 Shares", "554,672 Shares" and "554,638 Shares", respectively; (iii) Section 4(f) of the Plan is hereby amended to delete the references to "1,793,747 Shares" and "562,861 Shares" and inserting in their place "3,587,494 Shares" and "1,125,722 Shares", respectively; (iv) Section 4(i) of the Plan is hereby amended to delete the reference to "562,861 Shares" and inserting in its place "1,125,722 Shares"; (v) Section 5 of the Plan is hereby amended by deleting the reference to "$10.00" and inserting in its place "$5.00"; (vi) Section 7(a) of the Plan as heretofore amended by the First Amendment is hereby further amended by deleting the table in said section and inserting in its place the following table: - ----------------------------------------------------------------------- Tranche B Performance Tranche B Per Share Measurement Date Target Value - ----------------------------------------------------------------------- Third Anniversary Date (May 28, 2002) $10.985 - ----------------------------------------------------------------------- Fourth Anniversary Date (May 28, 2003) $14.29 - ----------------------------------------------------------------------- Fifth Anniversary Date (May 28, 2004) $18.565 - ----------------------------------------------------------------------- Sixth Anniversary Date (May 28, 2005) $24.135 - ----------------------------------------------------------------------- Seventh Anniversary Date (May 28, 2006) $31.375 - ----------------------------------------------------------------------- Eighth Anniversary Date (May 28, 2007) $40.79 - ----------------------------------------------------------------------- Ninth Anniversary Date (May 28, 2008) $53.025 - ----------------------------------------------------------------------- Tenth Anniversary Date (May 20, 2009) $68.935 - ----------------------------------------------------------------------- (vii) Section 8(a) of the Plan as heretofore amended by the First Amendment is hereby further amended by deleting the table in said section and inserting in its place the following table: - ----------------------------------------------------------------------- Tranche C Performance Tranche C Per Share Measurement Date Target Value - ----------------------------------------------------------------------- Third Anniversary Date (May 28, 2002) $13.72 - ----------------------------------------------------------------------- Fourth Anniversary Date (May 28, 2003) $19.21 - ----------------------------------------------------------------------- Fifth Anniversary Date (May 28, 2004) $26.895 - ----------------------------------------------------------------------- - ----------------------------------------------------------------------- Tranche C Performance Tranche C Per Share Measurement Date Target Value - ----------------------------------------------------------------------- Sixth Anniversary Date May 28, 2005) $37.655 - ----------------------------------------------------------------------- Seventh Anniversary Date (May 28, 2006) $52.715 - ----------------------------------------------------------------------- Eighth Anniversary Date (May 28, 2007) $73.80 - ----------------------------------------------------------------------- Ninth Anniversary Date (May 28, 2008) $103.32 - ----------------------------------------------------------------------- Tenth Anniversary Date (May 28, 2009) $144.65 - ----------------------------------------------------------------------- (viii) Exhibits A and B to the Plan are hereby deleted and replaced in their entirety by Exhibits A and B hereto; (ix) Appendix A to the form of 1998 Rollover Options-ISO in Exhibit D to the Plan is hereby amended by deleting the reference to "Option Price: $10" and inserting in its place "Option Price: $5"; (x) Appendix A to the form of 1997 Rollover Options-ISOs in Exhibit D to the Plan is hereby deleted and replaced in its entirety by Exhibit C hereto; (xi) Appendix A to the form of 1997 Rollover Options-NQO in Exhibit D to the Plan is hereby amended by deleting the references to "Common Stock: 33,483" and "Common Stock: $2.96" and inserting in their place to "Common Stock: 66,966" and "Common Stock: $1.48", respectively; and (xii) Appendix A to the form of New Option Grants in Exhibit D to the Plan is hereby deleted and replaced in its entirety by Exhibit D hereto. 2. Effective Date: The effective date of Sections 1.A., 1.B., 1.C. and 1.D of this Amendment shall be __________, 2002. The effective date of Section 1.E. of this Amendment shall be [insert date that Articles of Amendment is filed in Tennessee and the Stock Split is effective] 3. Terms and Conditions of Plan: Except for the above amendments, all terms and conditions of the Plan are unamended and shall remain in full force and effect. 4. Execution: This Amendment has been executed by a duly authorized officer of the Company on the date set forth below. PACER INTERNATIONAL, INC. By: -------------------------------- Title: ----------------------------- Date: ------------------------------ EXHIBIT A LIST OF INITIAL PARTICIPANTS AND INITIAL AWARDS
INITIAL PARTICIPANTS INITIAL AWARDS - ------------ -------------- Tranche A Tranche B Tranche C Total Donald C. Orris 66,668 66,666 66,666 200,000 Gerry Angeli 66,668 66,666 66,666 200.000 Gary I. Goldfein 66,668 66,666 66,666 200,000 Richard P. Hyland 66,668 66,666 66,666 200,000 Allen E. Steiner 66,668 66,666 66,666 200,000 Robert L. Cross 66,668 66,666 66,666 200,000 Robert Papworth 8,000 8,000 8,000 24,000 Dan Pendleton 8,000 8,000 8,000 24,000 George Kirtley 10,000 10,000 10,000 30,000 Greg Steiner 10,000 10,000 10,000 30,000 John Hein 10,000 10,000 10,000 30,000 Russ Oldson 6,668 6,666 6,666 20,000 Larry Kuharevicz 5,000 5,000 5,000 15,000 George Michelbach 5,000 5,000 5,000 15,000 Kent Prokop 5,000 5,000 5,000 15,000 Mark Hyland 5,000 5,000 5,000 15,000 Mike Amerio 5,000 5,000 5,000 15,000 Gary Copple 5,000 5,000 5,000 15,000 Gene Lucarz 5,000 5,000 5,000 15,000 Debra Wilcox 5,000 5,000 5,000 15,000 Bob Smith 3,334 3,334 3,332 10,000 Jim Baca 3,334 3,334 3,332 10,000 Jonathon Devens 3,334 3,334 3,332 10,000 Tom Knieps 3,334 3,334 3,332 10,000 Patricia Hamrick 3,334 3,334 3,332 10,000 Bruce Jackson 3,334 3,334 3,332 10,000 Bruce Hearn 3,334 3,334 3,332 10,000 Pat McGurk 3,334 3,334 3,332 10,000 Jerel McQuarrie 3,334 3,334 3,332 10,000 Bob Sweitzer 3,334 3,334 3,332 10,000 Dennis Richards 3,334 3,334 3,332 10,000 Steve Hawkins 3,334 3,334 3,332 10,000 Gary McGrath 3,334 3,334 3,332 10,000 Jim Wade 3,334 3,334 3,332 10,000 Jim Simon 3,334 3,334 3,332 10,000 Mike Murrell 3,334 3,334 3,332 10,000 Jim Silingo 3,334 3,334 3,332 10,000 Martin Healy 2,668 2,666 2,666 8,000 James Skelton 2,668 2,666 2,666 8,000 TOTALS 554,690 554,672 554,638 1,664,000
EXHIBIT B 1997 ROLLOVER OPTIONS
- -------------------------------------------------------------------------------------------------------------------------- Rollover Options Rollover Options Rollover Options Rollover Options Employee after Conversion Exercise Price Vested at Grant Vesting on 3/31/00 Vesting on 3/31/01 - -------------------------------------------------------------------------------------------------------------------------- Donald common stock 243,832 (ISOs) 243,832 (ISOs) 69,666 (NQOs) 121,916 (ISOs) 121,916 (ISOs) Orris at $0.11 at $1.48 at $0.11 at $0.11 69,666 (NQOs) 69,666 (NQOs) 69,666 (NQOs) at $1.48 ---------------------------------------------------------------------------------------------------------------- preferred 11,666 (ISOs) $9 3,333 (NQOs) 5,833 (ISOs) 5,833 (ISOs) stock at $9 at $9 at $9 3,333 (NQOs) - -------------------------------------------------------------------------------------------------------------------------- Robert common stock 243,832 (ISOs) 243,832 (ISOs) 69,666 (NQOs) 121,916 (ISOs) 121,916 (ISOs) Cross at $0.11 at $1.48 at $0.11 at $0.11 69,666 (NQOs) 69,666 (NQOs) at $1.48 ---------------------------------------------------------------------------------------------------------------- preferred 11,666 (ISOs) $9 3,333 (NQOs) 5,833 (ISOs) 5,833 (ISOs) stock at $9 at $9 at $9 3,333 (NQOs) - -------------------------------------------------------------------------------------------------------------------------- Gerry common stock 243,832 (ISOs) 243,832 (ISOs) 69,666 (NQOs) 121.916 (ISOs) 121.916 (ISOs) Angeli at $0.11 at $1.48 at $0.11 at $0.11 69,666 (NQOs) 69,666 (NQOs) at $1.48 ---------------------------------------------------------------------------------------------------------------- preferred 11,666 (ISOs) $9 3,333 (NQOs) 5,833 (ISOs) 5,833 (ISOs) stock at $9 at $9 at $9 3,333 (NQOs) - --------------------------------------------------------------------------------------------------------------------------
EXHIBIT B (continued) 1998 ROLLOVER OPTIONS - -------------------------------------------------------------------------------- Optionee Shares of Common Stock Exercise Price - -------------------------------------------------------------------------------- Joseph Atturio 58,728 $4.305 - -------------------------------------------------------------------------------- Lawrence Yarberry 66,000 $5.00 - -------------------------------------------------------------------------------- William Schuman 22,000 $5.00 - -------------------------------------------------------------------------------- Thomas Fitzgerald 22,000 $5.00 - -------------------------------------------------------------------------------- Brian Kane 16,500 $5.00 - -------------------------------------------------------------------------------- EXHIBIT C Appendix A--Form of 1997 Rollover Options-ISOs Number of Shares Common Stock: 243,832 Preferred Stock 11,666 Option Price: Common Stock $0.11 Preferred Stock $9 Vesting Schedule Vests on March 31, 2000 Vests on March 31, 2001 --------------------------------------------------- Common Stock 121,916 121,916 --------------------------------------------------- Preferred Stock 5,833 shares 5,833 shares --------------------------------------------------- EXHIBIT D Appendix A--Form of New Option Grants Number of Shares: _____ Tranche A: _____ Tranche B: _____ Tranche C: _____ Option Price: [$5] per share Vesting Schedule Tranche B - ----------------------------------------------------------------------- Tranche B Performance Tranche B Per Share Measurement Date Target Value - ----------------------------------------------------------------------- Third Anniversary Date (May 28, 2002) $10.985 - ----------------------------------------------------------------------- Fourth Anniversary Date (May 28, 2003) $14.29 - ----------------------------------------------------------------------- Fifth Anniversary Date (May 28, 2004) $18.565 - ----------------------------------------------------------------------- Sixth Anniversary Date (May 28, 2005) $24.135 - ----------------------------------------------------------------------- Seventh Anniversary Date (May 28, 2006) $31.375 - ----------------------------------------------------------------------- Eighth Anniversary Date (May 28, 2007) $40.79 - ----------------------------------------------------------------------- Ninth Anniversary Date (May 28, 2008) $53.025 - ----------------------------------------------------------------------- Tenth Anniversary Date (May 20, 2009) $68.935 - ----------------------------------------------------------------------- EXHIBIT D (continued) Tranche C - ----------------------------------------------------------------------- Tranche C Performance Tranche C Per Share Measurement Date Target Value - ----------------------------------------------------------------------- Third Anniversary Date (May 28, 2002) $13.72 - ----------------------------------------------------------------------- Fourth Anniversary Date (May 28, 2003) $19.21 - ----------------------------------------------------------------------- Fifth Anniversary Date (May 28, 2004) $26.895 - ----------------------------------------------------------------------- Sixth Anniversary Date May 28, 2005) $37.655 - ----------------------------------------------------------------------- Seventh Anniversary Date (May 28, 2006) $52.715 - ----------------------------------------------------------------------- Eighth Anniversary Date (May 28, 2007) $73.80 - ----------------------------------------------------------------------- Ninth Anniversary Date (May 28, 2008) $103.32 - ----------------------------------------------------------------------- Tenth Anniversary Date (May 28, 2009) $144.65 - -----------------------------------------------------------------------