Governing Law. The funding policy under this Plan is that all premiums on the Policy shall be remitted to the Insurer by the Employer when due. g. Venue. 8. Employer shall release the endorsement after five (5) years of full time service after implementation of this Agreement. (1) If for any reason a claim for benefits under this Plan is denied by the Company, the Claims Manager shall deliver to the claimant a written explanation setting forth the specific reasons for the denial, pertinent references to the Agreement section on which the denial is based, such other data as may be pertinent and information on the procedures to be followed by the claimant in obtaining a review of his claim, all written in a manner calculated to be understood by the claimant. The Executive will execute an endorsement or other restrictive agreement on the policy restricting the Executive’s right to (i) surrender the policy for its cash value, (ii) obtain a policy loan from the insurance company, (iii) assign the policy as collateral, (iv) change the ownership of the policy by endorsement or assignment, (v) change insured, or (vi) request settlement of the policy proceeds on the maturity date, without consent of the Employer. For eligible executives terminating for reasons of disability or retirement, a prorated portion of the bonus will be paid. When structured smartly, the executive bonus plan is a potent instrument for driving alignment around shared goals and incentivizing cross-company collaboration. 4. h. Attorneys’ Fees. 2. The waiver by any parry of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by any party. Employer: Your Company Name By: __________________________________________ Your Name, Manager Executive: __________________________________________ Employee’s Name PAGE 1 Q V W [ ] a ‚ � ’ — ˜ ² À Á Ø å > T �&. ò ò ² ò N ÿÿÿÿ ğíƒ$jºĞ ÿÿÿÿ d � ò  0 ¯ ò  ò  ò  Ê ò ( N N ò N N N N N T T ò N N N ¯ N N N N ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ ÿÿÿÿ  N N N N N N N N N @ : EXECUTIVE BONUS AGREEMENT THIS EXECUTIVE BONUS AGREEMENT (“Agreement”) made on Month Date, Year and entered into by and between Your Company, a State limited liabilty company (or corporation) (the “Employer”), and Your Employee (the “Executive”). 10. Purpose of Incentive Compensation Plan. In its simplest form, an executive bonus plan is one in which an employer pays the premiums on a permanent life insurance policy owned by an employee. [These bonuses may be calculated with a tiered system (e.g. Under Section 162, an executive bonus plan is a form for business owners or organizations to give extra supplemental profits to key employees or executives of their decision. compensation of CEOs working as “interim director,” executive director, “VP/Secretary,” and one individual with no listed title In determining the average amount of compensation, in one IRS valuation, the IRS included an organization that did not provide any compensation information for … b. Years were defined as fiscal year ends between August 1st and July 31st. This Agreement is a product of the negotiation of all of the parties. It is the intent of this restrictive covenant not to permit Executive to unfairly compete against Employer in the defense contracting business by reason of exposure to trade secrets, confidential information, and the knowledge such Executive has acquired concerning the Employer’s business, customers and/or active prospects of the Employer while having an agreement with Employer. a. 1. The following executive positions are included in the Executive Bonus Plan: Buyers/Planners/Merchant Division Managers. In this article, you will learn everything about 1) employee bonus plans and 2) how to structure an employee bonus plan. This Agreement may only be amended with the mutual written agreement of Employer and Executive. f. Severability. Exhibit 10.2. Whenever the term income appears it shall mean income after interest expense and taxes. No third-party administration is needed. 0 0 0 0 0 0 $ e ² h T Ê N , , " N N T z z N d È i ò ò ò N z N z 8 N . 4. For this report, Equilar examined the prevalence of performance metrics and performance periods for annual cash incentives and long-term incentives of CEOs, CFOs and other NEOs at S&P 500 companies over the last four fiscal years. Any notices required or permitted to be given hereunder shall be sufficient if in writing and if sent by certified or registered mail to the residence of Executive or principal office of Employer. (n) "Section 162(m) Officer" shall mean an officer of the Company who, in the Committee's determination made at the time of any Award, is or may become a "covered employee" as defined in Section 162(m) of the Code and the regulations thereunder. (m) "Plan" shall mean the Interface, Inc. Executive Bonus Plan. WITNESS WHEREOF the Parties have executed this Agreement this _____ day of Month, Year. These plans are a great benefit for a company to offer to non-owner key executives to retain and reward them for their valuable services. This bonus is tax deductible to the employer and taxable to the employee. An executive newly hired or promoted into a plan-eligible position during a fiscal year for which a bonus is paid will have his/her bonus prorated from the date of hire or promotion to the close of the fiscal year. 7. Executive Bonus Plan Document The sample executive bonus plan agreement below is for information purposes only. Executive understands and consents to this Agreement being filed with the company issuing the life insurance policy that is the subject of this Agreement. Under this plan, the business enters into an agreement with an executive to pay (via a bonus) all or part of the premiums for a life insurance policy or annuity contract owned by the executive. d.  Whenever the term retirement appears it shall mean retirement under Kohl's Retirement Policy. e.  In limited circumstances, the Chief Executive Officer, in consultation with the Compensation Committee, may approve limited exceptions to the terms of the Plan. Any waiver, amendment or modification hereto must be in writing and must be signed by both parties. Employer reserves the right to pay any additional amounts toward premiums as it so decides. For this purpose: (A) The claimant’s claim shall be deemed filed when presented orally or in writing to the Claims Manager. Pro rations will be based on full months of service during the fiscal year. In addition to the benefits of an executive bonus plan listed above, these also apply: "Golden handcuffs" are created through a restricted endorsement and vesting schedule. Participants  employed for the full fiscal year are eligible to participate in  the Plan for the entire fiscal year. This Agreement is being delivered and is intended to be performed in the State/Commonwealth of _______ and shall be construed and enforced in accordance with the laws of State. This Agreement may be executed in one or more counterparts, all of which together shall constitute one instrument. Assuming the tier requirement described in Section III is met or exceeded, participants will be granted a bonus based on a percentage of their base pay. Mr. DiPisa says an incentive plan should be made up of … z z Ê Ê Ê ÿÿÿÿ Ş Ş Ş 8 * $ Ş ¯ ¶ N N N N d N N N . If any provision of this Agreement becomes or is found to be illegal or unenforceable for any reason, such clause or provision must be first modified to the extent necessary to make this Agreement legal and enforceable and then if necessary, second, severed from the remainder of the Agreement to remain in full force and effect. For convenience counsel for Employer has drafted it. benefits, the Executive shall be entitled to participate, starting with the 2006 calendar year, in an executive bonus plan, as stated in the Exhibit (Schedule A) attached to this Agreement, as amended from time to time, subject to the terms and conditions provided therein. An executive benefit plan, used adequately, can be a helpful tool to draw and hold key executives. Incentive bonuses to encourage employees to achieve annual company financial goals. The Employer agrees to pay that portion of the annual premium necessary to maintain the mortality portion of life insurance Policy No. When signed by all of the parties, this Agreement shall be binding upon the parties, their representatives, heirs, successors and assigns. The Executive Performance Incentive Compensation Plan for The University of Texas System Presidents and UT System Administration Executive Officers (Incentive Plan) is designed to provide structure for the annual review and consideration of incentive reward that is based on predetermined performance goals. As major economies show signs of recovering from the 2008 recession, compensation can become more decisive to retaining and motivating critical senior executive talent. Venue and jurisdiction for any legal action arising under this Agreement shall be in the Circuit Court of the City of _________, State of ________, or any other location mutually agreed to by the parties. Purpose. way for business owners or companies to provide additional supplemental benefits to key employees or executives of their choice Please consult your tax and legal professionals concerning structuring an Bonus grants will be paid as soon as possible, following confirmation by the Compensation Committee that the required net income objectives have been met. EMPLOYEE BONUS PLANS. 3. The bonus payment will be subject to an executive's normal types of withholding taxes but such withholding will be at the minimum required rate. If Executive’s employment is terminated for any reason by either party before the expiration of said five (5) year period, the Employer shall release the endorsement or restrictions upon the reimbursement by Employee, as discussed in Paragraph 5 below, provided the Employer is under no obligation to release the endorsement or restriction prior to the later of the expiration of said five (5) year period or later until reimbursement as discussed in paragraph 5 below. It’s essentially free life insurance coverage. 1. j. A Restricted Executive Bonus plan funded with life insurance offers a hybrid arrangement that bridges the gap between a deferred compensation plan and a regular executive bonus plan. The purpose of an Incentive Compensation Plan is to motivate and reward key employees for accomplishing individual performance goals established in accordance with the business … The named fiduciary: The Chief Financial Officer of the Employer. Well designed executive benefit plans are important tools in both retaining and attracting top talent. Employer shall have the right to withhold amounts due to Executive for all income taxes resulting from this Agreement. The decision on review shall be in writing and shall include specific reasons for the decision written in a manner calculated to be understood by the claimant, as well as specific references to the pertinent Agreement provisions on which the decision is based. InterDigital Communications Corporation . Incentive bonuses for achieving or exceeding individual and team targets. b. Goals should be tiered, not "all or nothing." k. Executive’s Employment. Executive compensation is not only a consideration close to the pocket book of CFOs but also a topic of increasing importance to managements and boards. Pay for performance is a compensation strategy to align executive compensation with the company's success. THIS EXECUTIVE BONUS AGREEMENT (“Agreement”) made on Month Date, Year and entered into by and between Your Company, a State limited liabilty company (or corporation) (the “Employer”), and Your Employee (the “Executive”). With so many types of bonuses given to employees these days, there is a need to keep track of all of them and, once in a while, evaluate whether they accomplish what they were supposed to. c. Direct payment by the Insurer is the basis of payment of benefits under this Plan, with those benefits in turn being based on the payment of premiums as provided in the Plan. 9. d. Waiver of Breach. Using an Executive Bonus Plan, companies can provide their key executives or owners grow cash values in the form of company … If a copy of the decision is not so furnished to the claimant within such 60 days, the claim shall be deemed denied on review. (2) The claimant shall have 60 days following his or her receipt of the denial of the claim to file with the Claims Manager a written request for review of the denial. i. 123456789 insuring Executive’s life issued by Life Insurance Company, and owned by Executive as long as Executive remains employed by the Employer. c.  Whenever the term base pay appears it refers to the rate of pay in effect on the last day of the fiscal year and before taxes and other deductions have been made and also prior to any contributions made under the Company's 401(k) plan. Potential benefits of a restricted executive bonus arrangement. At companies with these plans, The purpose of the Executive Bonus Plan is to provide eligible executives with a financial incentive, encouraging them to perform in a manner, which will enable the Company to meet or exceed its financial objectives each fiscal year. If your manager or another executive (including the C-suite) verbally promises you a bonus, they can not follow through unless they put it ... should give a formal payout plan to each employee. If the employment of Executive should be terminated either voluntarily or involuntarily, Executive should be terminated either voluntarily or involuntarily, Executive will not, directly or indirectly, for a period of time ending two (2) years after Executive’s termination of employment with Employer, hire, employ or contract with any individual who is an employee of the Employer without the prior written consent of the Employer. If the employment with the Employer of Executive hereunder should be terminated for any reason, whether either voluntarily or involuntarily, by Employer or Executive, or otherwise, Executive will not directly or indirectly, for a period of time ending two (2) years after Executive’s termination of employment with Employer solicit, call upon, service, assist, quote to, contact, converse or correspond with any customer of the Employer as of the date of termination and any customer of the Employer who was a customer within two years of the date of termination. The data collected for this detailed study includes performance metrics and their weightings, perf… This Agreement may be terminate by the Employer at any time. Neither MEG Financial, Inc. nor any of its representatives offers legal or tax advice. In the event of termination due to retirement, death or disability the last day of the last full month worked shall replace the last day of the fiscal year. The earned percentage is based on their level (position) within the organization. One type of executive benefit plan, commonly referred to as a 162 bonus plan, is designed to provide 2016 VP Bonus Plan - SendGrid Inc. (Jan 1, 2016) Executive Bonus Plan - Etsy Inc. (2014) 2013 Senior Executive Annual Bonus Plan- Seattle Genetics Inc. (2013) Incentive Bonus Plan - Capella Education Co. (Dec 8, 2011) Employee Bonus Plan - Palo Alto Networks Inc. (Sep 30, 2011) Incentive Bonus Plan - Capella Education Co. (Feb 23, 2011) 2011 Bonus/Retention Plan - Facebook Inc. (Jan 1, 2011) a. The Company reserves the right to terminate the plan for any given calendar For eligible executives terminating for reason of death, a full bonus will be paid. This Agreement revokes all previous agreements among the Parties to the extent they are inconsistent herewith. In order for bonuses to be granted under the Plan, Company performance for a fiscal year must equal or exceed net income goals for the company as established by the Board of Directors’ Compensation Committee. Etsy is pleased to confirm your eligibility and participation in the Executive Bonus Plan (Plan) effective , 2014, on the terms described in this document.The Plan is an annual discretionary bonus that is intended to help motivate key executives to achieve our company-wide goals and reward them for achievement of company and individual results. The Restrictive Endorsement Bonus Arrangement (REBA)/Executive Bonus Plans (EBP) program is a planning tool designed to assist you in exploring potential employee benefit and planning options through the use of life insurance and investment strategies. Equilar also analyzed the most recently disclosed long-term incentive plans for CEOs in the S&P 100 index. 5. In addition, executives often receive additional or supplemental benefits and perquisites, which may include a special retirement plan, a deferred compensation plan, extra insurance coverage, extra vacation, company cars, use of company plane, club memberships, financial and legal counseling, and so on. The plan is simple, straightforward and easy to implement. The incentive program allows them each to earn up to an additional 20% of their base salary. Special Provisions - The following provisions are part of this Agreement and are intended to meet the requirements of the Employee Retirement Income Security Act of 1974: a. a way for business owners or companies to provide additional supplemental benefits to key employees or executives of their choice Any amendment or termination of this Agreement shall not affect any benefits that were awarded. One of the most common forms of these executive bonus plans is being used to purchase life insurance to key employees. 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