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Deferred Compensation Contract
"I need a Deferred Compensation Contract for our tech startup's senior software engineers, allowing them to defer 20% of their annual bonus with a 3-year vesting period starting January 2025, including provisions for early vesting if we achieve an IPO."
1. Parties: Identification of the employer and employee entering into the deferred compensation arrangement
2. Background: Context of the agreement, employment relationship, and purpose of the deferred compensation arrangement
3. Definitions: Key terms used throughout the agreement, including specific financial and employment-related terminology
4. Deferred Compensation Amount: Specification of the amount to be deferred, calculation methodology, and timing of deferrals
5. Vesting Schedule: Terms and conditions for vesting of deferred compensation, including time-based or performance-based criteria
6. Payment Terms: Timing and method of payment of the deferred compensation, including triggering events
7. Tax Treatment: Provisions regarding tax withholding, reporting obligations, and tax compliance
8. Termination Provisions: Effects of employment termination on deferred compensation, including various scenarios
9. Compliance with Laws: Provisions ensuring compliance with relevant New Zealand laws and regulations
10. Administration: Procedures for managing and administering the deferred compensation arrangement
11. Amendment and Termination: Provisions for modifying or terminating the agreement
12. General Provisions: Standard contractual terms including governing law, notices, and entire agreement
1. Equity Components: Required when deferred compensation includes stock options or other equity-based compensation
2. Change in Control: Needed when specific provisions apply in case of company ownership changes
3. International Tax Provisions: Required for employees with international tax obligations or cross-border arrangements
4. Non-Competition and Confidentiality: Added when specific restrictive covenants are tied to the deferred compensation
5. Death and Disability: Special provisions for payment in case of death or disability
6. Trust or Security Arrangements: When specific security or trust arrangements are used to secure the deferred compensation
7. Clawback Provisions: Required when the company wants right to recoup payments under certain circumstances
1. Schedule 1 - Calculation Methodology: Detailed formula and examples for calculating deferred compensation amounts
2. Schedule 2 - Vesting Schedule: Detailed timeline and conditions for vesting of deferred compensation
3. Schedule 3 - Performance Criteria: Specific performance metrics and targets if compensation is performance-based
4. Schedule 4 - Payment Election Form: Template form for employee to elect timing and form of payment
5. Schedule 5 - Tax Withholding Procedures: Detailed procedures for tax compliance and withholding
6. Appendix A - Beneficiary Designation Form: Form for designating beneficiaries in case of death
7. Appendix B - Summary of Key Terms: Simple summary of main agreement terms for quick reference
Authors
Administrator
Agreement
Base Salary
Beneficiary
Board
Cause
Change in Control
Code
Company
Compensation Committee
Confidential Information
Deferred Amount
Deferral Election
Disability
Effective Date
Eligible Employee
Employee
Employer
FMCA
Good Reason
Group Company
Interest Rate
Investment Options
KiwiSaver Scheme
Material Breach
Participant
Payment Date
Performance Criteria
Plan
Plan Year
Related Company
Retirement
Separation from Service
Specified Employee
Termination Date
Trust
Trustee
Unforeseeable Emergency
Valuation Date
Vested Balance
Vesting Date
Vesting Schedule
Working Day
Compensation Deferral
Vesting
Payment Terms
Distribution
Tax Compliance
Investment Options
Administration
Amendment and Termination
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property
Change in Control
Death Benefits
Disability Benefits
Forfeiture
Clawback
Assignment
Severability
Governing Law
Dispute Resolution
Force Majeure
Notices
Entire Agreement
Variation
Waiver
Termination Rights
Compliance with Laws
Trust Arrangements
Record Keeping
Reporting Requirements
Beneficiary Designation
Financial Services
Technology
Professional Services
Manufacturing
Healthcare
Retail
Mining and Resources
Telecommunications
Construction
Energy
Real Estate
Insurance
Human Resources
Legal
Finance
Payroll
Executive Management
Board Secretariat
Compensation and Benefits
Tax
Compliance
Risk Management
Chief Executive Officer
Chief Financial Officer
Executive Director
Managing Director
Senior Vice President
Department Head
Regional Manager
Senior Manager
Key Account Manager
Technical Director
Principal Engineer
Senior Consultant
Sales Director
Research Director
Investment Manager
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