Is there any issue with plan providing for employer to make discretionary contributions to participant's account in NQDCP in such amount as employer determines if contributions are subject to 3 year vesting and are to be paid out with participant's elective deferrals upon occurrence of statutory distribution events (death, disability, change in control, etc. )?

Of course there are issues, but our deferred compensation plan has a very similar (except for the vesting schedule). This should be able to work with appropriate drafting.