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Deferred Compensation Agreement Form Template for Canada

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Key Requirements PROMPT example:

Deferred Compensation Agreement Form

"I need a Deferred Compensation Agreement Form for our Toronto-based technology company, covering stock options and annual bonus deferrals for our senior executives, with vesting periods of 3-5 years and specific provisions for international tax implications as some executives work remotely from the US."

Document background
The Deferred Compensation Agreement Form is a crucial document used in Canadian employment relationships where an employer and employee agree to defer payment of a portion of compensation to a future date. This arrangement is commonly implemented for tax planning purposes, retention of key employees, or as part of executive compensation packages. The agreement must comply with Canadian federal and provincial regulations, particularly the Income Tax Act and CRA guidelines, while also considering employment standards and securities regulations where applicable. The document typically includes detailed provisions about deferral elections, vesting schedules, distribution triggers, and investment options, making it particularly relevant for executive compensation planning and corporate retention strategies.
Suggested Sections

1. Parties: Identification of the employer and employee entering into the agreement

2. Background: Context of the agreement, employment relationship, and purpose of the deferred compensation arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including Deferred Compensation, Compensation Committee, Triggering Events, etc.

4. Amount of Deferred Compensation: Specification of the amount or percentage of compensation to be deferred

5. Deferral Election: Process and timing for making deferral elections, including any modification provisions

6. Vesting Provisions: Terms and conditions under which the deferred compensation becomes vested

7. Distribution of Benefits: Timing and form of payment of the deferred compensation

8. Funding and Trust Provisions: Description of how the deferred compensation will be funded and held

9. Administration: Details about who administers the plan and their powers and duties

10. Claims Procedures: Process for making claims and resolving disputes

11. Amendment and Termination: Provisions for modifying or terminating the agreement

12. General Provisions: Standard legal provisions including governing law, notices, and entire agreement

Optional Sections

1. Investment Options: Section detailing available investment choices for deferred amounts, used when the agreement allows participant-directed investments

2. Change in Control Provisions: Special provisions triggered by a change in control of the employer, included for senior executives

3. Non-Competition and Confidentiality: Restrictive covenants, typically included for senior management agreements

4. Tax Gross-Up Provisions: Provisions for employer payment of additional taxes, included in executive agreements

5. International Tax Provisions: Special provisions for cross-border employees or international tax implications

6. Disability Provisions: Special provisions for distribution or continued deferral in case of disability

7. Death Benefits: Provisions for beneficiary designations and payment upon death

Suggested Schedules

1. Schedule A - Deferral Election Form: Standard form for making initial and subsequent deferral elections

2. Schedule B - Payment Election Form: Form specifying the timing and method of distribution

3. Schedule C - Investment Options: Detailed list of available investment options and their terms

4. Schedule D - Beneficiary Designation Form: Form for designating beneficiaries for death benefits

5. Schedule E - Calculation Methodology: Detailed explanation of how deferred amounts and earnings are calculated

6. Appendix 1 - Tax Considerations: Summary of relevant tax implications and considerations

7. Appendix 2 - Administrative Procedures: Detailed procedures for administration of the deferred compensation arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions











































Clauses






























Relevant Industries

Financial Services

Technology

Professional Services

Healthcare

Manufacturing

Energy

Telecommunications

Mining

Real Estate

Consulting

Pharmaceuticals

Consumer Goods

Relevant Teams

Human Resources

Legal

Finance

Executive Management

Compensation & Benefits

Tax

Corporate Governance

Payroll

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Executive Director

Senior Vice President

Vice President

Director

Senior Manager

Department Head

Regional Manager

Partner

Principal

Senior Consultant

Key Account Manager

Senior Sales Executive

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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