Long Form Deferred Compensation Agreement

VIEWS: 0 PAGES: 5

More Info
									Long Form Deferred
Compensation Agreement
This is an agreement between a company and an employee that provides the employee
with retirement pay and benefits above and beyond the company’s pension plans.
Customize the amount of deferred compensation amount, how it will be paid out, the
employee’s covenants, and much more. This agreement is ideal for small businesses
that want to incentivize longtime employees by giving them deferred compensation
above their normal salary, pension, and 401(k).
           LONG FORM DEFERRED COMPENSATION AGREEMENT

THIS LONG FORM DEFERRED COMPENSATION AGREEMENT (hereinafter referred
to as the “Agreement”) is made this the __________ day of __________, _____ [Instructions:
Insert the date of this agreement] by and between __________________________
[Instructions: Insert the name of the Company] with a principal business address of
_____________________________________ [Instructions: Insert the address of the
Company] (hereinafter referred to as the “Company”) and ______________________________
[Instructions: Insert the name of the Employee] with an address of
_____________________________________ [Instructions: Insert the address of the
Employee] (hereinafter referred to as the “Employee”).

WHEREAS, Employee is a key employee of Company and now serves as Company’s
_____________________ [Instructions: Insert the Employee’s job title] and

WHEREAS, Company wishes to retain the services of Employee until Employee’s retirement
and wishes to encourage Employee to remain with Company until retirement; and

WHEREAS, Company wants to therefore provide Employee, as additional compensation for
services to Company, with retirement income over and above what will be available to Employee
under Company’s regular pension plan for Employees;

NOW, THEREFORE, in consideration of the terms and covenants of this Agreement, and other
good and valuable consideration, the receipt of which is acknowledged, the parties agree as
follows:

1. DEFERRED COMPENSATION DETAILS

On Employee’s retirement at the age of _____ [Instructions: Insert the retirement age of the
Employee] or above, or on Employee’s earlier retirement due to sickness or other disability, or
on Employee’s early retirement with the consent of Company, Company will pay to Employee
the sum of the sum of $__________, [Instructions: Insert the total deferred compensation
amount] payable in ____ [Instructions: Insert the number of monthly installment payments
the Company will need to pay the deferred compensation amount] equal monthly
installments of $__________, [Instructions: Insert the monthly installment amount] on
________ [Instructions: Insert the day of the month the Company will pay the installment
amount] day of each month beginning the _____ day of __________, 20_____, [Instructions:
Insert the date the installment payments will start] and continuing until such sum has been
paid in full.

2. EMPLOYEE’S DEATH BEFORE FULL PAYMENT

In the event Employee dies before the full payment of the deferred compensation amount under
the conditions set forth in Section 1, Company will pay the remaining unpaid amount called for
in Section 1 to such person or persons named by Employee in a written document filed by the




© Copyright 2013 Docstoc Inc. registered document proprietary, copy not             2
Employee with Company before their death, or in absence of such designation, to Employee’s
estate.

3. EMPLOYEE’S DEATH DURING EMPLOYMENT

If Employee dies while still employed by Company, Company will pay the sum of
$___________ [Instructions: Insert the monthly installment amount] per month (multiplied
by the fraction set forth in Paragraph 4 of this Agreement) for ____ [Instructions: Insert the
number of monthly installment payments the Company will need to pay the deferred
compensation amount] months following Employee’s death to such person or persons
designated by Employee in a written document filed with Company before death, or in absence
of such designation, to Employee’s estate.

4. NATIONAL CONSUMER PRICE INDEX

Each monthly payment by Company set forth in Paragraphs 1, 2, and 3 of this Agreement shall
be multiplied by a fraction, the numerator of which shall be the monthly National Consumer
Price Index that was issued by the United States Department of Labor for the most recent
monthly period prior to the due date of the payment and the denominator of which shall be the
monthly National Consumer Price Index that was issued by the United States Department of
Labor for the most recent monthly period prior to the effective date of this Agreement.

5. TERMINATION OF EMPLOYMENT

If Employee terminates their employment with Company under conditions other than those set
forth in Paragraphs 1, 2, and 3 of this Agreement, or if Employee otherwise does not fulfill all
Employee’s obligations under this Agreement, the obligations of Company to make or to
continue to make the payments called for in Paragraphs 1, 2, and/or 3 of this Agreement shall
terminate immediately.

6. EMPLOYEE’S NON-COMPETITION

Employee agrees that, as a condition for entitlement to payments by Company under this
Agreement, Employee will not engage in any employment, either as an employee or as an
independent contractor, with any person, firm, corporation, or other entity that is a business
competitor of Company, without the prior, express, and written consent of Company. If, at any
time, Employee violates the provisions of this Paragraph, the obligation of Company to make
any future payments to Employee or Employee’s beneficiaries under this Agreement shall
terminate immediately.

7. NON-ASSIGNMENTS

Neither Employee nor Employee’s beneficiaries shall have the right to encumber, commute,
borrow against, dispose of, or assign the right to receive payments under this Agreement.




© Copyright 2013 Docstoc Inc. registered document proprietary, copy not             3
8. ENTIRE AGREEMENT

This Agreement shall constitute the entire agreement between the parties and any prior
understanding or representation of any kind preceding the date of this Agreement shall not be
binding upon either party except to the extent incorporated in this Agreement.

9. MODIFICATIONS

Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if evidenced in writing signed by each
party or an authorized representative of each party.

10. GOVERNING LAW

It is agreed that this Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of ___________________ [Instructions: Insert the state’s laws that
will govern this agreement]

11. NOTICES

Any notice provided for or concerning this Agreement shall be in writing and be deemed
sufficiently given when sent by certified or registered mail if sent to the last known address of
each party.


IN WITNESS WHEREOF, Company and Employee have hereby executed this Agreement as
of the date first above written.


EMPLOYEE


_________________________



COMPANY


_________________________
By: _________________________
I have authority to bind the Company




© Copyright 2013 Docstoc Inc. registered document proprietary, copy not              4

								
To top