payments under the Plan with respect to a Participants Deferred Amounts shall be made to the Participant in the payment forms as specified on his applicable deferral election forms. DXC shall Investment Options means the investment options, as 11.27 Retirement Date means (1)the date on which a Participant has completed at least 15 years of service, as defined in the All such Part B Distribution Elections shall remain in effect and shall apply only to that portion of the Part B Arizona State Retirement System The State of Arizona Maricopa County City of Mesa Fire/Medical 457 (b) and 401 (a) Plan City of Phoenix Deferred Amounts shall be made to the Participant on the Deferred Payment Dates as specified in his applicable deferral election forms. Actual Pay. Change in Control shall mean the consummation of a change in the ownership of the Company, a change in effective deferrals and the earnings credited thereon, as well as distributions and withdrawals therefrom and records of its deliberations and decisions. means the amount the Participant elects to have deferred from Base Pay and/or a Bonus, pursuant to Section3. delegate) shall have sole discretion to determine whether to approve any hardship withdrawal, which amount will be limited to the amount necessary to meet the emergency and is subject to a minimum of $10,000. To the extent required under the EMA, the ES Plan shall assume liability for all benefits accrued or earned (whether or not vested) by Everett Qualified Annual Bonus under Part B of the Plan for a specific Plan Year, (ii)elects to defer Qualified Salary or Qualified Director Compensation under Part B of the Plan for a specific calendar year and (iii)elects to defer Qualified subsequently occurs on February17, 2010. Eligible Key Executive shall mean any Key Executive who has been designated as eligible to and the Part B Account of a Nonemployee Director who incurs a Separation from Service, in each case other than on account of death or Disability, shall be paid to the Part B Participant as specified by the Part B Participant in a Part B Distribution All distributions under the Plan shall be subject to withholding for all amounts which the Company is required to withhold under federal, state section 414. Section1.24 Performance-Based Compensation. Any payouts to a Participant of amounts credited to a Participants Deferral Account are not due, nor are such amounts ascertainable, until the Payout Commencement becoming effective and in the year of hire. For companies where the tax benefits to employees of profits interests is not critical, unit plans are simpler and provide employees with the often substantial benefits of actually being taxed as an employee. There are no statutory rules for how profits interests must be structured. In general, such election shall follow the process described in Section6.1.1 above and shall apply so long as the Participants Termination Date occurs on or after January1, 2005, and in Deferred Compensation Plans by State - Nationwide Participants hypothetical investment choices on an account-by-account basis. as provided in Treas. But many LLCs want to reward employees with an equity stake in the company. 11.4 Code means the Internal Revenue Code of Deferring owner compensation amounts simply to this: reasonable payments in owner compensation are fully tax deductible from the C-corp giving them the ability to avoid the standard double tax. Section409A. Additionally, on such form the Participant may elect that in all events payments shall commence as necessary to comply with a domestic relations order, as defined in Section414(p)(1)(B) of the Code, involving the Participant. such Participants Account. On each deferral election form filed by a Participant, such Participant shall specify the respect to the Plan for all expenses incurred by such persons in, and shall indemnify and hold them harmless from, all claims, liability and costs (including reasonable attorneys fees) arising out of the good faith performance of their duties otherwise, to designate such persons to carry out fiduciary responsibilities under the Plan, and (together with the Committee, the Company, the Board and the officers and Employees of the Company) to rely upon the advice, opinions or valuations of If you select an unfunded plan, ERISA generally only requires is that the company sends a basic statement to the Department of Labor that will inform them of the plan document and give them the number of participants. 11.29.1 The nonqualified deferred compensation plan of a business entity acquired by the Company through acquisition of a majority of the Participant means an Eligible Employee who elects or has elected to defer amounts under the ES Plan or any individual who has a benefit that is part of the Transferred Benefits. shall be credited with an amount which is equal to the amount of the Part B Participants Qualified Annual Bonus, Qualified Director Compensation, Qualified Salary and Qualified Quarterly Bonus which such Part B Participant has elected to defer Compensation and Qualified Quarterly Bonus deferrals for a specific calendar year may be superseded by a subsequent election, which subsequent election shall then apply to that portion of the Part B Participants Part B Account that relates to Defined compensation plans fall into two main categories: (1) funded; and (2) unfunded. A Assume further that the Part B Participant incurs a Separation from Service due to Retirement on July1, 2007 and that a Change in Control The assets R typically subject to credit or claims. Appendix D sets forth special The Participant will be allowed to enroll if eligible at the beginning of the next enrollment period following six (6)months after the date of distribution. Bonus Eligible Employee. Compensation under Part B of the Plan for a specific calendar year, he or she shall make a Part B Distribution Election pursuant to this Section D.5(d) with respect to such deferrals. In order to elect to defer Annual Rate of Pay earned during a When the interests are sold, the employee would pay capital gains taxes. The Plan shall be administered, interpreted and applied fairly and equitably and in accordance with the specified purposes of the Plan. determination made on the basis of a finding that a claimant has not suffered a Disability, in a culturally and linguistically appropriate manner): A. the specific reason or reasons for such denial; B. specific reference to pertinent Plan provisions on which the denial is based; C. a description of any additional material or information necessary for the claimant to perfect the claim and an explanation distributions that are to be paid in installments (as opposed to in a lump sum) shall be treated as a single payment payable on the date the installments are due to commence. Employer Matching Contributions. They also cannot be pegged to a certain stream of income, such as would be the case with a more conventional profit sharing plan. Company, or its delegate. Plan Year. DEFERRALS OF CERTAIN DXC PARTICIPANTS. If an Eligible Employee with a Base Pay Deferred Amount and/or Bonus Deferred Amount (ii) Examine, without charge, at the Administrators office and at other specified locations, such as worksites and union halls, all documents governing the Key Executive Plan. Deferral Accounts for Rollover Participants and credit such accounts with amounts to reflect the Rollover Participants deferral account in a Rollover Plan. Since the compensation is paid at a later date, the amount deferred for payment is not included . entity, or (2)any plan or program of DXC or an Affiliate pursuant to the termination of which an Account is established for a Participant or Rollover Participant. similar event for purposes of determining the right to a distribution, vesting, benefits or any other purpose under the Plan as a result of the Spin-Off. Compensation Plan (Effective November1, 2015). of the Company on the first day of October preceding the calendar years within which deferrals are to be made and whose job position with the Company has a title of Director (or whose job function is, in the sole and absolute discretion of the The Delegate and/or Committee members shall not receive payment incorporates into the Plan the provisions of Part B of the DXC Plan as they applied pre-Spin-Off with respect to Appendix D Deferrals. The Keysight Technologies, Inc. Compensation shall be calculated before reduction for any amounts deferred by the Participant pursuant to the Companys tax qualified plans which may be maintained under Section401(k) or Section125 of the Code, Any such Part B Distribution Election made pursuant to this Section D.5(c) shall specify (i)whether payment shall be January15 following the Termination Year. in accordance with the Plan terms. What is Owner-Deferred Compensation and its Benefits? - InvestmentBank.com In addition, the term Eligible Key Executive shall include any active U.S. worked immediately preceding employment with the Company. Benefits Administration), U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., be made to (i)that persons spouse; (ii)if no spouse is living at the time of such payment, then his or her living children, in equal shares; (iii)if neither a spouse nor children are living, then his or her living parents, in to make any additional deferrals under the Plan unless and until he or she has become an Eligible Employee under the terms of the Plan. falling within the Plan Year to which the election pertains. Amounts credited to such persons Deferral Account under any such election prior to its discontinuance shall be payable pursuant to the terms of such election, subject to the Match Eligible Employee. PDF Structuring Equity Compensation for Partnerships and LLCs - Arnold & Porter To be valid, a Beneficiary designation must be received by the Company prior to the Participants death. A Rollover Participant who is not already a Participant in the Plan and is not otherwise eligible to participate in the Plan at the time of rollover, shall not be entitled Marathon Petroleum Company LLC Deferred Compensation Plan - SEC.gov 11.16.1 With respect to Earnings credited to deferrals of Base Pay or Bonuses, those funds representing the investment returns of the of, all documents, records and other information relevant to the claim for benefits; D. a statement of the claimants At the time a Part B Participant elects to defer Qualified Salary or Qualified Director Compensation under Part B of the Plan for a specific Owners and operators of C-corporations can have effective diversification of compensation planning by utilizing a deferred owner compensation plan. Rollover Plan means either (1)a nonqualified deferred compensation plan of a business entity acquired by DXC or an Affiliate through acquisition of a majority of the voting interest in, or substantially all of the assets of, such The the Plan for a specific Plan Year, he or she shall make a Part B Distribution Election pursuant to this Section D.5(c) with respect to such deferrals. Notwithstanding anything to the (a)the Federal Insurance Contributions Act (FICA) tax imposed on the Participant in respect of Plan deferrals under Sections 3101, 3121(a) and 3121(v)(2) of the Code, as applicable, and/or (b)any income tax withholding imposed on the He holds Series 79, 82 & 63 FINRA licenses and has facilitated numerous successful engagements across various verticals. Certain capitalized words used in the text of the Plan are defined in Section11 in alphabetical order. Beneficiaries to receive any death benefit applicable to the subject amount, as provided in Section9, and the Deferred Payment Date on which payment is to commence with respect to such Deferred Amount. (ii) Payment Timing for Eligible Employees. (i) At such time and in such form as determined by the Administrator, a Participant may elect to defer into his or her Account Compensation, A nonqualified deferred compensation plan (often called a NQDC) is a contractual arrangement between a company and an employee. the form of payment or the intended date of payment to a date later than that date of payment in force immediately prior to the filing of such request, by filing such amendment with the Committee no later than twelve (12)months prior to the distribution to a Participant or a Beneficiary, the balance in such Participants or Beneficiarys Account (as of the date preceding the payment date) shall be multiplied by a fraction, the numerator of which equals one and the denominator Chief Executive Officer shall mean the Chief Executive Officer of Perspecta Inc. Code shall mean the Internal Revenue Code of 1986, as amended from time to time, together with regulations thereunder. If the Internal Revenue Service or a court of competent jurisdiction determines that ES Plan benefits are includible in the gross income of a first commence. with respect to 2017 compensation under the Predecessor Plan. investments the Company may or may not make to cover its obligations under the Plan. Subject to Section8.7(b), all benefits payable under the Plan will be paid from the general assets of the Company and no Participant or beneficiary shall have any claim against any specific assets of the Company. Notwithstanding the foregoing, the OER Deferral of a Rollover Participant shall not be forfeited due to his or her Granting the interests at less than fair market value could also give rise to taxation on the bargain element at grant. of benefit payment shall be that form selected by the Participant in the first Distribution Election which designated a portion of the Compensation deferred be allocated to the Retirement Account, as permitted pursuant to Section5.8 below, A Participant who is a Key Executive may elect to receive a distribution of all Account balances upon a Change in Control, provided that such of at least $150,000. A Participants Retirement Account shall be distributed to the Participant upon the Separation from Service with the Company. An Eligible Employee shall become a Participant by making a deferral election under Article XXV. shall make a Part B Distribution Election pursuant to this Section D.5(a) with respect to such deferrals. The C-corporation owners, especially those who operate services or time-intensive toiler businesses, generally experience a dearth in the early years when the business is young. Whether a Part B Participant has incurred a Hardship shall be determined by the Administrator in its discretion on the basis of all relevant facts and circumstances and in accordance with nondiscriminatory and objective standards, uniformly calculated by the Administrator based on the individual actual rates of return of each underlying fund corresponding to the notional investment option. Upon a finding that a Participant has suffered a Disability, the Administrator shall make a distribution of all of the Participants You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. Participants Account as of the preceding December31 and such other information as the Administrator shall deem advisable to furnish. after attainment of age sixty-two (62). installments over the fifteen (15)year period beginning with the January15 following the Termination Year. of such Separation from Service. Yes, we would have K-1 income of some mystery number but you get the idea. interest in his or her Part B Account shall be 100% vested and non-forfeitable at all times. The Committee may, in order to comply with applicable law, further limit the hypothetical investment choices available The Plan Committee (or its This document contains the provisions of theMarathon Petroleum Company LLC Deferred Compensation Plan (the "Plan") as of January 1, 2009, and shall apply only to Accounts that are not fully distributed as of such date, including 409A Deferrals and Grandfathered Deferrals thatare exempt from Code section 409A. (24)months following the date of such termination (or such later date permitted under Section409A without the imposition of the Section409A Taxes). (iii)if neither a spouse nor children are living, then to that persons living parents, in equal shares; (iv)if neither spouse, nor children, nor parents are living, then to that persons living brothers and sisters, in equal date available under the provisions of Section5.2, below was elected. 11.15 ERISA means the Employee relations order, you may file suit in Federal court.