Trailer Bridge may pay up to $990,500 under employee incentive plan

By Caroline Salls

Pittsburgh, Jan. 18 - Trailer Bridge, Inc. requested court approval of a performance-based key employee incentive plan, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The company said the incentive plan provides for participation of 32 of its key employees, including co-chief executive officer and general counsel William G. Gotimer Jr. and co-chief executive officer and chief financial officer Mark Tanner.

Under the plan, a bonus pool, based on the achievement of EBITDA levels, will be available for distribution to the key employees.

Specifically, if Trailer Bridge achieves 95% to 105% of the EBITDA projections, about $800,000 will be available.

If the company exceeds the EBITDA projections by 25%, the bonus pool will increase to $990,500, which would be the maximum amount to be paid under the plan.

On the other hand, if the company fails to meet the EBITDA projections, the bonus pool will decrease based on the percentage of variance from the projections.

The company said Gotimer and Tanner's bonus award opportunities will each be $200,000 under the plan.

According to the 8-K, incentive plan payments will be made five days after the effective date of the company's plan of reorganization and will be paid from exit financing proceeds.

If a key employee's employment terminates before the payment of any bonus, the employee automatically forfeits the payment of that bonus.

No amounts will be earned if a plan of reorganization is not confirmed by April 15.

Trailer Bridge, a Jacksonville, Fla.-based trucking and marine transportation company, filed for bankruptcy on Nov. 16 in the U.S. Bankruptcy Court for the Middle District of Florida. Its Chapter 11 case number is 11-08348.

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