BX » Topics » DEFERRALS

This excerpt taken from the BX 10-K filed Mar 12, 2008.

DEFERRALS

Section 3.01 Bonus and Premium Award Deferrals.

(a) With respect to a given Fiscal Year, each Participant selected to participate in the Plan in accordance with Section 2.01 hereof shall be required, immediately prior to the Investment Date, to defer a portion of his or her Annual Bonus for such Fiscal Year (his or her “Bonus Deferral Amount”) calculated as follows:

 

Portion of Annual Bonus

   Marginal Deferral Rate
Applicable to Such Portion
  Effective Deferral Rate for
Entire Annual Bonus*

$0 - 100,000

     0%       0%

$100,001 - 200,000

   15%     7.5%

$200,001 - 500,000

   20%     15%

$500,001 - 750,000

   25%   18.3%

$750,001 - 2,000,000

   35%   28.8%

$2,000,001 - 5,000,000

   40%   35.5%

$5,000,000 +

   45%       38.7%**

 

* Effective Deferral Rates are shown for illustrative purposes only and are based on an Annual Bonus equal to the maximum amount in the range shown in the far left column.
** Effective Deferral Rate of 38.7% is shown for illustrative purposes only and is based on an Annual Bonus equal to $7,500,000.

Notwithstanding the foregoing: (i) if a Participant’s Annual Bonus includes a Guaranteed Bonus, such Participant’s Bonus Deferral Amount shall be equal to (x) the portion of the Guaranteed Bonus which the document evidencing the Guaranteed Bonus states will be deferred, plus (y) a portion of the amount (if any) by which the Participant’s Annual Bonus exceeds his or her Guaranteed Bonus, determined pursuant to the table above (based on the total


amount of such Participant’s Annual Bonus) and (ii) the Firm reserves the right to change the method by which a Participant’s Bonus Deferral Amount will be calculated with respect to any Annual Bonus by notifying the Participant in writing in advance of the Annual Bonus Notification Date for such Annual Bonus. Deferral of each Participant’s Bonus Deferral Amount for the relevant Fiscal Year shall be automatic and mandatory and shall occur immediately prior to the Investment Date for such Fiscal Year. The excess of the Participant’s Annual Bonus for the relevant Fiscal Year over his or her Bonus Deferral Amount for such Fiscal Year shall be paid to the Participant on such date and in the same manner as such Participant’s Annual Bonus would have been paid to him or her if he or she was not a Participant in the Plan with respect to such Fiscal Year.

(b) In addition, each Participant selected to participate in the Plan in accordance with Section 2.01 hereof shall be granted an additional premium bonus in the amount equal to twenty percent (20%) of such Participant’s Bonus Deferral Amount (the “Premium Amount” and, together with such Participant’s Bonus Deferral Amount, his or her “Deferral Amount”). Deferral of each Participant’s Premium Amount for the relevant Fiscal Year shall be automatic and mandatory and shall occur immediately prior to the Investment Date for such Fiscal Year.

(c) On the Investment Date, (i) the Participant’s Bonus Deferral Amount shall be deemed to be invested in whole in the number of Units that is equal to such Bonus Deferral Amount divided by the average of the Fair Market Values of a Unit on each of the ten (10) trading days immediately preceding the Investment Date, rounded up to the nearest whole number (the Participant’s “Bonus Deferral Units”) and (ii) the Participant’s Premium Amount shall be deemed to be invested in whole in the number of Units that is equal to such Premium Amount divided by the average of the Fair Market Values of a Unit on each of the ten (10) trading days immediately preceding the Investment Date, rounded up to the nearest whole number (the Participant’s “Premium Deferral Units,” and together with the Bonus Deferral Units, his or her “Deferral Units”). The Firm will keep on its books and records an account for each Participant (his or her “Plan Account”), in which the Firm will record the number of Deferral Units credited to such Participant.

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