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Rollover Agreement Many Value Provision Options

This Rollover Agreement template facilitates the deferment of compensation or benefits, allowing an employee or executive to roll over certain entitlements into a future period or different investment vehicle. It is suitable for use when structuring executive compensation, bonus deferrals, or long-term incentive plans.

Updated 15d ago
rollover agreementcompensationbenefitsexecutive compensationdeferred compensationincentive plansouthern africa

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

ROLLOVER AGREEMENT

This Rollover Agreement (the "Agreement") is made and entered into as of this {{date_of_agreement_signing}} day of {{month}}, {{year}} (the "Effective Date"), By and Between:

{{employer_company_name}}, a company duly incorporated under the laws of {{jurisdiction_of_incorporation}}, with its principal place of business at {{employer_company_address}} (hereinafter referred to as "the Company");

AND

{{employee_full_name}}, an adult individual with identification number {{employee_id_number}}, residing at {{employee_residential_address}} (hereinafter referred to as "the Employee").

Collectively referred to as the "Parties" and individually as a "Party".

RECITALS

WHEREAS, the Employee is employed by the Company in the position of {{employee_position_title}};

WHEREAS, pursuant to the Employee's employment agreement dated {{original_employment_agreement_date}}, or other compensation arrangements, the Employee is entitled to certain benefits, bonuses, or compensation (the "Entitlements") as more fully described in Schedule A hereto;

WHEREAS, the Parties desire to agree upon the deferral or rollover of such Entitlements into a future period or alternative investment as set out in this Agreement.

1. DEFINITIONS

1.1 "Effective Date" shall mean the date first written above.

1.2 "Entitlements" shall mean the specific benefits, bonuses, or compensation to be rolled over as detailed in Schedule A.

1.3 "Rollover Date" shall mean {{rollover_date}}, the date upon which the Entitlements are deemed to be rolled over.

1.4 "Rollover Vehicle" shall mean the specific mechanism or account into which the Entitlements are rolled over, which may include, but is not limited to, a deferred compensation plan, a share ownership scheme, or a retirement fund, as further specified in Clause 3.

2. ACKNOWLEDGMENT OF ENTITLEMENTS

2.1 The Company and the Employee acknowledge and agree that as of the Effective Date, the Employee is entitled to the Entitlements specified in Schedule A, amounting to {{amount_of_entitlements}} ({{amount_of_entitlements_words}}).

3. ROLLOVER ELECTION

3.1 The Employee irrevocably elects to roll over the Entitlements into {{rollover_vehicle_description}} (the "Rollover Vehicle"), as further described in Schedule B.

3.2 The Rollover shall be effective on the Rollover Date.

3.3 The Employee understands and agrees that by making this election, the Entitlements shall no longer be immediately payable as cash compensation but shall be subject to the terms and conditions governing the Rollover Vehicle.

4. TERMS OF THE ROLLOVER VEHICLE

4.1 The specific terms and conditions governing the Rollover Vehicle, including vesting schedules, distribution events, and any applicable investment options, are set forth in Schedule B attached hereto and incorporated herein by reference.

4.2 The Employee acknowledges having received, read, and understood the terms and conditions of the Rollover Vehicle.

5. TAX IMPLICATIONS

5.1 The Employee acknowledges that they have been advised to seek independent professional advice regarding the tax implications of this Agreement and the Rollover Election, both in {{country_of_taxation}} and any other relevant jurisdiction.

5.2 The Company makes no representations or warranties regarding the tax treatment of the Entitlements or the Rollover Vehicle, and the Employee assumes sole responsibility for all tax liabilities arising therefrom.

6. GOVERNING LAW AND DISPUTE RESOLUTION

6.1 This Agreement shall be governed by and construed in accordance with the laws of {{applicable_governing_law_jurisdiction}}.

6.2 Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in accordance with the rules of {{arbitration_body}}.

7. ENTIRE AGREEMENT

7.1 This Agreement, together with its Schedules, constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, of the Parties.

8. AMENDMENTS

8.1 No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by all Parties hereto.

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Rollover Agreement as of the Effective Date.

FOR THE COMPANY:

_____________________________

Name: {{company_representative_name}}

Title: {{company_representative_title}}

Date: {{date_signed_company}}

FOR THE EMPLOYEE:

_____________________________

Name: {{employee_full_name}}

ID Number: {{employee_id_number}}

Date: {{date_signed_employee}}

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