Insurance. Insurance is increasingly being used to finance unsy qualified conversion benefits. The main reason for this is that an insurance contract allows the company or manager to accumulate assets on a deferred tax basis by increasing the present value of the policies. If the officer dies before retirement, the proceeds of the policy are used to pay a death benefit. Since many companies use insurance to cover the cost of these benefits and insurance income in the event of death is exempt from tax, the return on investment can be equal and, in some cases, higher than a company`s performance in its qualified plans. The company itself can hold the insurance contracts or transfer them to a rabbi or a secular trust. 1.2.25 Trust. “Trust” means the target Corporation Deferred Compensation Trust Agreement of January 1, 2009 by and between the Company and the State Street Bank and Trust Company, as amended from time to time or a similar trust agreement. 1.2.3 Beneficiary. “beneficiary” means a natural (human) person, a trust that is a United States person within the meaning of the Code, a person recognized as a non-profit organization in accordance with Section 170(b) of the Code, or the participant`s estate153 that, in accordance with Section 5.6, is intended to receive all or part of the Participant`s Account153 if the Participant had 153 accounts prior to the full distribution of Account 153. A person so designated is not considered a beneficiary until the death of the participant.
Compensation plan balances reflect additional savings, income and retirement benefits accumulated over time. The amounts are directly correlated with the long tenure of our managers, individual investment decisions and individual decisions on the amount of savings made over time. If the employment relationship of a designated officer ends after a change of control, the post-termination benefits that may be received consist of severance pay under the PKI. In addition, involuntary dismissal or voluntary termination due to cause (a substantial reduction in remuneration or responsibilities or a necessary transfer) will speed up the exercise of outstanding stock options. The estimated amount of additional benefits after the end of the benefits generated by the Change-in-Control operation for any circumstance of termination of employment contract after a change of control is as follows: 10.1 IRC status. This is an unqualified deferred compensation agreement that, in terms of form and operation, meets the requirements of Section 409A of the Code, and this plan is interpreted and managed in a manner that is consistent with and applies that intent. Conversely, a compensation philosophy that ignores deferred compensation and emphasizes short-term performance over long-term management provides little incentive for an employee to stay with a company. If staff stay, succession planning is more difficult without deferred retirement plans. Therefore, the unsy qualified conversion of remuneration is not only a matter of benefits, but also of good corporate governance. Due to our outstanding performance during his tenure as CEO, the Compensation Committee has deemed it appropriate in recent years to position Mr. Ulrich`s compensation at the top of the market relative to our leading companies. In 2007, Mr.
Ulrich`s total compensation, as reported in TBS, decreased significantly, mainly due to reductions in assumptions about future distribution levels or share prices for share allocations and a much lower non-equity incentive distribution, both of which were a direct result of our financial performance in 2007. . .