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EXHIBIT 10.3
October 19, 1998
Xx. Xxxxxx X. Xxxxxx, III
President, Jeffboat LLC and
American Commercial Terminals LLC
0000 X. Xxxxxx Xxxxxx
Xxxxxxxxxxxxxx, XX 00000
Dear Xxx:
This letter sets forth the mutual understandings and agreements between
you and American Commercial Lines LLC ("ACL") on the terms and conditions upon
which you will continue your employment with the company through October 31,
2001. These terms are as follows:
1. Your current annual base salary will continue in effect with the opportunity
for adjustment pursuant to ACL's regular salary adjustment programs.
2. You will have the opportunity to receive a performance based bonus for
calendar year 1998 under ACL bonus plan terms to be negotiated for all ACL
employees with the Board of Managers of American Commercial Lines Holdings LLC,
the ACL parent company. For calendar years 1999, 2000 and 2001, your performance
based bonus opportunity will be 0% to 100% of your annual base salary under the
terms of the ACL bonus plan to become effective for such years, with a plan
based target of 65% of base salary.
3. You will receive a fixed annual bonus of $150,000 for each of three
successive twelve month periods comprised of October 31, 1998-October 30, 1999,
October 31, 1999-October 30, 2000, and October 31, 2000-October 30, 2001, and
payable in January 2000, 2001, and 2002, respectively.
4. You will receive a transaction retention bonus, equal to your current base
salary plus your highest cash bonus paid in the previous three calendar years,
payable in January 1999.
5. You commit to continue your employment with Jeffboat and American Commercial
Terminals in you current job assignments through October 31, 2001 which will
then be the effective date for your retirement from ACL unless otherwise
mutually agreed pursuant to a modification or extension of this letter
agreement. You commit to identify, assist in hiring if deemed appropriate, and
cultivate a qualified person as your replacement.
6. All terms and conditions, rights and benefits provided under the ACL
Severance Pay Plan, implemented in April 1998, are hereby terminated.
