This incentive agreement template has 4 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our incentive agreement template:
INCENTIVE AGREEMENT This Incentive Agreement (the "Agreement") is effective [DATE], BETWEEN: [COMPANY NAME], (the "Company"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [COMPLETE ADDRESS] AND: [EMPLOYEE NAME], (the "Employee") an individual with their main address located at: [COMPLETE ADDRESS] Collectively, the Company and Employee shall be referred to as the "Parties." WHEREAS, the Employee is employed by the Company in a key executive capacity and the Employee's services are valuable to the conduct of the business of the Company; WHEREAS, the Company recognizes that circumstances may arise in the future causing a potential conflict of interest between the Company's needs for the Employee to remain focused on the Company's business and the necessary continuity in management, and the Employee's reasonable personal concerns regarding economic protection; WHEREAS, the Company and the Employee are desirous that any proposal for future retirement will be considered by the Employee objectively and with reference only to the best interests of the Company and its shareowners; and WHEREAS, the Employee will be in a better position to consider the Company's best interests if the Employee is afforded reasonable economic security in the form of an incentive payment, as provided for in this Agreement, to accomplish certain goals that promote the best interests of the Company. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: INCENTIVE Subject to the terms and conditions of this Agreement, and so long as the Employee remains continuously employed as an Employee by the Company through [SPECIFY DATE], the Company shall pay to the Employee a one-time cash bonus in the amount of up to [SPECIFY AMOUNT] (the "Incentive Bonus"). No Incentive Bonus shall be payable if the Employee's employment is terminated prior to [SPECIFY DATE] for the following reasons: the Employee's death, termination by the Company with cause or voluntary termination by the Employee. CONDITIONS FOR PAYMENT OF INCENTIVE The Incentive Bonus shall be paid provided: The Employee, prior to the date above, achieves the following performance goals: [SPECIFY GOALS]. TIMING OF PAYMENT The Incentive Bonus shall be payable in cash as soon as practicable after [SPECIFY DATE], so long as the conditions provided in Section 2 are met. In no case may the Incentive Bonus, if any, be paid later than [SPECIFY DATE]. WITHHOLDING OF TAX The Company shall be entitled to withhold from amounts to be paid to the Employee hereunder any federal, state, or local withholding or other taxes or charges which it is required to withhold. LANGUAGE OF THE CONTRACT The language of the Agreement shall be the English Language, which shall be the binding and controlling language for all matters relating to the meaning or interpretation of the Agreement. EMPLOYMENT This Agreement shall not be construed as granting to the Employee any right with respect to continued employment by the Company. EMPLOYEE BENEFIT PURPOSE
