Deferred Compensation Plan

Company: [Company Name] · Plan Effective Date: [Date]

1. Purpose

This non-qualified deferred compensation plan allows eligible employees to defer a portion of their compensation to a future date, for tax and retirement planning purposes.

2. Eligibility

Eligible participants: [e.g. executives/employees above a specified compensation threshold, per the plan's eligibility criteria].

3. Deferral Elections

Participants may elect to defer up to [%] of [salary/bonus], by making an irrevocable election before the start of the [plan year/performance period], per Section 409A timing requirements.

4. Distribution

Deferred amounts will be distributed upon [a fixed date, separation from service, disability, or death], as elected by the participant at the time of deferral, per the plan's distribution rules.

5. Vesting

[State whether deferred amounts (and any company match) are immediately vested or subject to a vesting schedule.]

6. Unfunded Plan

This plan is unfunded; participants are unsecured general creditors of the Company with respect to their deferred amounts.

7. Investment Crediting (if applicable)

[State how deferred amounts are credited with notional investment returns, if the plan allows participant investment direction.]

Adopted by: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal or tax advice. Non-qualified deferred compensation plans are subject to strict IRS rules under Section 409A — an improperly structured plan (wrong election timing, impermissible acceleration of distributions) can trigger immediate taxation plus a 20% penalty for participants, so have this drafted or reviewed by a benefits attorney.*