g. Venue. An Executive Bonus Plan is an essential part of a comprehensive executive compensation package. When signed by all of the parties, this Agreement shall be binding upon the parties, their representatives, heirs, successors and assigns. InterDigital Communications Corporation . Using an Executive Bonus Plan, companies can provide their key executives or owners grow cash values in the form of company … Agreement Binding. 1. Incentive bonuses to encourage employees to achieve annual company financial goals. Of the sample companies, 72.0% had a quantitative plan that included at least one financial or market-based performance metric. a. Executive Bonus Plan Summary. (m) "Plan" shall mean the Interface, Inc. Executive Bonus Plan. [These bonuses may be calculated with a tiered system (e.g. (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. Goals should be tiered, not "all or nothing." Incentive bonuses for achieving or exceeding individual and team targets. 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. 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 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. Counterparts - Facsimile Signatures. 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. 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. (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. way for business owners or companies to provide additional supplemental benefits to key employees or executives of their choice Plan Types There are two general types of annual cash incentive plans: those based on financial or market-based metrics, and those that require compensation committee discretion. 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. 4. Revocation. 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. 8. 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. Other key sales support managers may also be eligible for participation in the plan. These are company-wide bonuses that may be announced at the beginning of the year by senior leaders. This Agreement may only be amended with the mutual written agreement of Employer and Executive. 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. a way for business owners or companies to provide additional supplemental benefits to key employees or executives of their choice The funding policy under this Plan is that all premiums on the Policy shall be remitted to the Insurer by the Employer when due. 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. c. Notices. The data collected for this detailed study includes performance metrics and their weightings, perf… 123456789 insuring Executive’s life issued by Life Insurance Company, and owned by Executive as long as Executive remains employed by the Employer. 9. WITNESS WHEREOF the Parties have executed this Agreement this _____ day of Month, Year. In this article, you will learn everything about 1) employee bonus plans and 2) how to structure an employee bonus plan. Sample Incentive Compensation Plan. Governing Law. RESTRICTIVE EXECUTIVE BONUS (SECTION 162) AGREEMENT— SINGLE BONUS For Attorney Use Only. Mr. DiPisa says an incentive plan should be made up of … No third-party administration is needed. b. 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 … Insurance Company. 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. 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. Employer shall release the endorsement after five (5) years of full time service after implementation of this Agreement. Employers can recruit and retain key associates by offering a truly valuable financial perk—death benefit protection and the tax-advantaged cash value of life insurance. However, the Employer shall not be entitled to receive any benefits under the policy. 5. j. I. One of the most common forms of these executive bonus plans is being used to purchase life insurance to key employees. 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. 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. 162 Bonus Plans – The Basics for Employers EXECUTIVE SUMMARY As the economy improves, employee talent is at a premium. The Executive will recognize the premium paid hereunder as additional compensation for federal and state income tax purposes. Under the executive bonus plan, the employer pays a bonus to the employee so the employee can purchase (and own) a fixed indexed universal life … Bonus grants will be paid as soon as possible, following confirmation by the Compensation Committee that the required net income objectives have been met. At companies with these plans, This specimen form may be given to the client’s attorney for consideration when requested. Executive understands and consents to this Agreement being filed with the company issuing the life insurance policy that is the subject of this Agreement. Employer reserves the right to pay any additional amounts toward premiums as it so decides. The Employer agrees to pay that portion of the annual premium necessary to maintain the mortality portion of life insurance Policy No. 2. The earned percentage is based on their level (position) within the organization. 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. 10. Any amendment or termination of this Agreement shall not affect any benefits that were awarded. The Company reserves the right to terminate the plan for any given calendar 5% for hitting 80% of the goal, 10% for hitting the goal and 20% for exceeding the goal.) This instrument contains the entire agreement of the parties with respect to the subject matter hereof. Miscellaneous. An executive benefit plan, used adequately, can be a helpful tool to draw and hold key executives. 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. Employer shall have the right to withhold amounts due to Executive for all income taxes resulting from this Agreement. This Agreement may be terminate by the Employer at any time. It’s essentially free life insurance coverage. Annual Employee Bonus Plan . 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. Purpose of Incentive Compensation Plan. EXECUTIVE BONUS PLAN . b. 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. 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. 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. 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. d. Waiver of Breach. Executives terminating for any other reason prior to the end of  a fiscal year will not be eligible to receive any portion of the bonus for that fiscal year. 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 . This Agreement revokes all previous agreements among the Parties to the extent they are inconsistent herewith. This bonus is tax deductible to the employer and taxable to the employee. i. Years were defined as fiscal year ends between August 1st and July 31st. For eligible executives terminating for reasons of disability or retirement, a prorated portion of the bonus will be paid. d. For claims procedure purposes, the “Claims Manager” shall be the vice-president of the Employer. 7. Pay for performance is a compensation strategy to align executive compensation with the company's success. Purpose . (B) The Claims Manager’s explanation shall be in writing delivered to the claimant within 90 days of the date the claim is filed. The following executive positions are included in the Executive Bonus Plan: Buyers/Planners/Merchant Division Managers. Nothing contained in this Agreement, and no action of the Employer shall confer or be construed to confer on the Executive any right to continue in the employ of the Employer or interfere in any way with the right of the Employer to terminate the Executive’s employment at any time, with or without cause; subject, however, to the provisions of any employment agreement between the Executive and the Employer. 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. This Agreement may be executed in one or more counterparts, all of which together shall constitute one instrument. Reposted with permission z z Ê Ê Ê ÿÿÿÿ Ş Ş Ş 8 * $ Ş ¯ ¶ N N N N d N N N . Potential benefits of a restricted executive bonus arrangement. The particular bonus tiers will be determined by the Committee annually at the beginning of each fiscal year and communicated to participants as soon as determined. Originally published in Hay Group’s newsletter, The Executive Edition , 2008, No. Executive hereby acknowledges and agrees that the aforementioned methods, procedures and customs information derived from their relationship with the Employer constitutes trade secrets and confidential information of the Employer. This Agreement is intended to advance the interests of the Employer by providing Executive as a key member of Employer’s management structure with a benefit program that will serve as an additional incentive for him or her to provide the success of the Employer and encourage him or her to maintain his or her employment relationship with the Employer and to reward him for his past efforts. There are no representations, conditions or obligations except as herein specifically provided. If Executive’s employment with Employer is terminated within five (5) years from the date hereof for any reason, then Executive will not be required to reimburse Employer for any portion of the cash surrender value of the policy. 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”). 6. This Agreement is a product of the negotiation of all of the parties. (3) The Claims Manager shall decide the issue on review and furnish the claimant with a copy within 60 days of receipt of the claimant’s request for review of his or her claim. Neither MEG Financial, Inc. nor any of its representatives offers legal or tax advice. If either party shall commence any action or proceeding against the other in order to enforce the provisions hereof, or to recover damages resulting from the alleged breach of any of the provisions hereof, the prevailing party therein shall be entitled to recover all reasonable costs incurred in connection therewith, including, but not limited to, reasonable attorneys’ fees. k. Executive’s Employment. Any waiver, amendment or modification hereto must be in writing and must be signed by both parties. Exhibit 10.57 . For eligible executives terminating for reason of death, a full bonus will be paid. Purpose. As major economies show signs of recovering from the 2008 recession, compensation can become more decisive to retaining and motivating critical senior executive talent. Well designed executive benefit plans are important tools in both retaining and attracting top talent. 1. ò N . Exhibit 10.2. 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