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Miller Canfield Discusses Non-Qualified Deferred Compensation

September 6, 2005

Federal tax and employee benefits attorneys from Miller, Canfield, Paddock and Stone, P.L.C. will discuss non-qualified deferred compensation plans at a special briefing for employers and executives on Tuesday, September 20, 2005 from 7:30-9:00 a.m. at The Westin Southfield-Detroit (1500 Town Center, Southfield). Employers and executives have until December 31, 2005 to meet the Section 409A compliance deadline, which applies to a broad range of plans and programs that result in a deferral of compensation, including individual agreements with employees and service providers.

An organization may have a non-qualified deferred compensation plan if it:

• Offers employment contracts that allow executives or key employees to defer any portion of their income.

• Has a stock option plan or other equity-based compensation arrangement.

• Provides supplemental retirement benefits with payout over time.

“Employers and executives could face immediate taxation on deferrals and steep penalties if they do not meet compliance by the end of the year,” said Michael A. Indenbaum, head of the Federal Tax and Employee Benefits Group at Miller Canfield. “Because 409A can apply to a broad range of agreements, employers should review all plans that could possibly provide a deferral, and act quickly to bring the agreement into compliance.”

The event is free. Reservations are required to Virginia Herrick at 313/496-7548 or Space is limited.

The 350-attorney law firm of Miller, Canfield, Paddock and Stone, P.L.C. was established in Detroit in 1852 and has offices in Ann Arbor, Detroit, Grand Rapids, Howell, Kalamazoo, Lansing, Monroe, Saginaw, and Troy, Michigan. Other offices are located in New York City, Pensacola, Florida, Washington, D.C., Windsor, Ontario, and in Gdynia, Katowice, and Warsaw, Poland.