[{"data":1,"prerenderedAt":515},["ShallowReactive",2],{"document-incentive-agreement-D13226":3},{"document":4,"label":21,"preview":11,"thumb":22,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":23,"breadcrumb":27,"related":33,"customDescModule":177,"customdescription":6,"mdFm":178,"mdProseHtml":514},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"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 ",null,"Incentive Agreement","4",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/incentive-agreement-D13226.png","https://templates.business-in-a-box.com/imgs/250px/13226.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13226.xml",{"title":15,"description":6},"incentive agreement",[17,20],{"label":18,"url":19},"Legal Agreements","/templates/business-legal-agreements/",{"label":18,"url":19},"Incentive Agreement Template","https://templates.business-in-a-box.com/imgs/400px/13226.png",[24,17,20],{"label":25,"url":26},"Templates","/templates/",[28,29,30],{"label":25,"url":26},{"label":18,"url":19},{"label":31,"url":32},"Employment & Contractors","/templates/employment-and-contractors/",[34,38,42,46,50,54,58,62,66,70,74,78,82,100,119,133,148,163],{"label":35,"url":36,"thumb":37,"extension":10},"Sales Commission and Incentive Policy","/template/sales-commission-and-incentive-policy-D13771","https://templates.business-in-a-box.com/imgs/250px/13771.png",{"label":39,"url":40,"thumb":41,"extension":10},"Equity Incentive Plan","/template/equity-incentive-plan-D13224","https://templates.business-in-a-box.com/imgs/250px/13224.png",{"label":43,"url":44,"thumb":45,"extension":10},"Customer Incentive Program Announcement","/template/customer-incentive-program-announcement-D1387","https://templates.business-in-a-box.com/imgs/250px/1387.png",{"label":47,"url":48,"thumb":49,"extension":10},"Non-Profit Partnership Agreement","/template/non-profit-partnership-agreement-D14023","https://templates.business-in-a-box.com/imgs/250px/14023.png",{"label":51,"url":52,"thumb":53,"extension":10},"Acquisition Agreement","/template/acquisition-agreement-D847","https://templates.business-in-a-box.com/imgs/250px/847.png",{"label":55,"url":56,"thumb":57,"extension":10},"Amalgamation Agreement","/template/amalgamation-agreement-D855","https://templates.business-in-a-box.com/imgs/250px/855.png",{"label":59,"url":60,"thumb":61,"extension":10},"Arbitration Agreement","/template/arbitration-agreement-D856","https://templates.business-in-a-box.com/imgs/250px/856.png",{"label":63,"url":64,"thumb":65,"extension":10},"Attorney Agreement","/template/attorney-agreement-D862","https://templates.business-in-a-box.com/imgs/250px/862.png",{"label":67,"url":68,"thumb":69,"extension":10},"Bonus Agreement","/template/bonus-agreement-D13815","https://templates.business-in-a-box.com/imgs/250px/13815.png",{"label":71,"url":72,"thumb":73,"extension":10},"Caregiver Agreement","/template/caregiver-agreement-D13510","https://templates.business-in-a-box.com/imgs/250px/13510.png",{"label":75,"url":76,"thumb":77,"extension":10},"Charter Agreement","/template/charter-agreement-D13440","https://templates.business-in-a-box.com/imgs/250px/13440.png",{"label":79,"url":80,"thumb":81,"extension":10},"Coaching Agreement","/template/coaching-agreement-D13221","https://templates.business-in-a-box.com/imgs/250px/13221.png",{"description":83,"descriptionCustom":6,"label":84,"pages":85,"size":86,"extension":10,"preview":87,"thumb":88,"svgFrame":89,"seoMetadata":90,"parents":91,"keywords":98,"url":99},"EXCLUSIVE SOLICITATION/SALES COMMISSION AGREEMENT This Exclusive Solicitation/Sales Commission Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR 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: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Representative\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WITNESSETH THAT, in consideration of the mutual convenience and undertakings hereinafter set forth, the parties hereto agree as follows: 1. OBJECT The Company hereby grants to Representative the sole and exclusive right to solicit and collect orders for the purchase of such company products described in Schedule A attached hereto (hereinafter referred to as \"Products\") from the customers listed in Schedule B attached hereto (hereinafter referred to as \"Customers\") within the geographic area described in Schedule C attached hereto (hereinafter referred to as the \"Territory\"). 2. TERM This Agreement covers a period beginning [DATE], and terminating on [DATE]. Upon the expiry of this term, it shall be renewed automatically for an additional period of [NUMBER] years and thence similarly from year to year thereafter unless one party has given written notice to the other at least one month before the renewal date of its intention to terminate this Agreement. This Agreement may also be terminated in accordance with Section 12 hereof. 3. BEST EFFORTS Representative agrees that its employee(s) will use his (their) best efforts to actively promote and increase the sale of the Products in the Territory and more specifically to reach the forecast listed in Schedule D hereto attached. 4. PROMOTIONAL MATERIALS The Company shall supply Representative, on request, copies of all materials describing or advertising the Products. Representative shall not distribute any other promotional materials than those furnished by the Company. 5. PRICES The Products shall be sold by the Representative at prices shown on a price list to be furnished by the Company to the Representative, which price list may be amended from time to time by the Company. 6. PRODUCTS OF OTHER MANUFACTURERS It is understood by the parties that Representative may continue to solicit orders for, sell, or otherwise distribute the products of other manufacturers subject to the following terms and conditions: Attached hereto as Schedule E, is a list and a description of the products presently promoted, sold or otherwise distributed by Representative. Representative shall not, without the Company's prior written consent, which may be withheld at the Company's entire discretion, promote, solicit orders, sell or otherwise distribute, directly or indirectly, a product not specified in Schedule E. 7. PURCHASE ORDERS 7.1 All purchase orders received by Representative shall be submitted to the Company forthwith. Purchase orders shall specify the particular products, the quantity thereof required and the date of required delivery thereof. 7.2 Any purchase order received by the Company may be refused or accepted by the Company. Upon acceptance of such order, the Company shall deliver the products directly to the customer at the location specified in the said order. The Customer shall be invoiced directly by the Company. 8. RENUMERATION 8.1 Subject to paragraph 8.4 hereof, Representative shall be entitled to receive from the Company a commission equal to a percentage of the net amount invoiced by the Company for the sale of the Products to Customers in the Territory as per Schedule F attached hereto. The \"net amount invoice\" shall be the amount of the invoice less discounts, taxes, or any other charges (such as embroidery and printing). It is understood that a commission will be owing to Representative for such invoice meeting the conditions herein, whether or not orders were submitted by Representative to the Company or received directly by the Company from the customer. 8.2 The Company agrees to submit to Representative on a regular basis, copies of all order confirmations processed by the Company, to be later followed by a copy of the corresponding invoices. 8.3 Any commission payable by the Company to Representative pursuant to this Agreement will be paid on the [NUMBER] day of the month following the date of the invoice. 8.4 Should an invoice remain unpaid for a period of [NUMBER] days from the due date, Representative undertakes to repay the commission relating to such sale to the Company, in the event that it has already been paid by the Company to a representative. Such an amount is owing as of the [NUMBER] day following the date of the notice to this effect sent by the Company to Representative. No liability shall be incurred by the Company for any loss of commission resulting from cancellation of an order (either by the Company or the customer) or resulting from an order not shipped complete for any reason whatsoever. 8.6 In the event of termination of this Agreement for whatever reason, the Company will honor all commissions owed to Representative for orders submitted by Representative to the Company or received directly by the Company from the customer prior to the termination of this Agreement, as per the following: Commissions will be paid for all nylon and technical orders \"in-stock and/or booking\" shipped and invoiced during a period of three months following the effective date of termination. 8.6.2 Commissions will be paid for all other seasonal products after the goods will have been shipped and invoiced. 9. PRODUCT SAMPLES 9.1 Representative shall purchase from the Company samples of the products at a discount of [%] of the price corresponding to such products shown on the current price list. All payment owing by Representative to the Company for the purchase of such samples shall be paid to the Company within [NUMBER] days of the date of the invoice issued by the Company. 9.2 Product samples are the property of the Representative and are not to be returned to the Company. It is understood that Representative may sell such samples for his own profit as he determines and he must assume all risks involved with the sale. 10. PROPRIETARY INTEREST Representative agrees that it will, at any time upon request of the Company, and, in any event, promptly upon termination of this Agreement, return to the Company all price lists, quotation guides, outstanding quotations, books, records, manuals and sales literature and paraphernalia, customer record cards, correspondence, contracts, orders and other papers and documents in its possession which pertain or relate to the Company's business whether furnished to Representative by the Company or compiled by Representative in the course of its services hereunder, it being understood that all such property, books, papers and the like are and remain the property of the Company, and that the Company shall not be required to pay to Representative any sums of money then due to Representative until this provision has been complied with. Representative further agrees not to retain any copies or reproductions of the documents or such property of the Company. 11. CONFIDENTIAL INFORMATION AND NON-COMPETITION","Exclusive Sollicitation Sales Commission Agreement","12",60,"https://templates.business-in-a-box.com/imgs/1000px/exclusive-sollicitation_sales-commission-agreement-D1242.png","https://templates.business-in-a-box.com/imgs/250px/1242.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1242.xml",{"title":6,"description":6},[92,95],{"label":93,"url":94},"Sales & Marketing","sales-marketing",{"label":96,"url":97},"Marketing & Sales Contracts","marketing-sales-contracts","exclusive sollicitation sales commission agreement","/template/exclusive-sollicitation-sales-commission-agreement-D1242",{"description":101,"descriptionCustom":6,"label":102,"pages":103,"size":9,"extension":10,"preview":104,"thumb":105,"svgFrame":106,"seoMetadata":107,"parents":109,"keywords":108,"url":118},"EMPLOYMENT AGREEMENT - AT WILL EMPLOYEE This Employment Agreement for \"At Will\" Employee (the \"Agreement\") is made and effective this [DATE], BETWEEN: [EMPLOYEE NAME] (the \"Employee\"), an individual with his main address at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Corporation\"), an entity organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Corporation hereby employs the Employee and the Employee hereby agrees to perform services as an employee of the Corporation, on an \"at will\" basis, upon the following terms and conditions: APPOINTMENT The Employee is hereby employed by the Corporation to render such services and to perform such tasks as may be assigned by the Corporation. The Corporation may, in its sole discretion, increase or reduce the duties, or modify the title and job description, of the Employee from time to time, and any such increase, reduction or modification shall not be deemed a termination of this Agreement. ACCEPTANCE OF EMPLOYMENT Employee accepts employment with the Corporation upon the terms set forth above and agrees to devote all Employee's time, energy and ability to the interests of the Corporation, and to perform Employee's duties in an efficient, trustworthy and business-like manner. DEVOTION OF TIME TO EMPLOYMENT The Employee shall devote the Employee's best efforts and substantially all of the Employee's working time to performing the duties on behalf of the Corporation. The Employee shall provide services during the hours that are scheduled by the Corporation management. The Employee shall be prompt in reporting to work at the assigned time. NO CONFLICT OF INTEREST Employee shall not engage in any other business while employed by the Corporation. Employee shall not engage in any activity that conflicts with the Employees duties to the Corporation. Employee shall not provide any service or lend any aid or assistance to any party that competes with the services offered by the Corporation. Employee shall not provide any services to clients or prospective clients of the Corporation outside of the provision of services for the Corporation, whether such services are provided with or without compensation or remuneration. CORPORATION PROPERTY Employee acknowledges and agrees that while employed by the Corporation the Employee may be provided with use of computer equipment and other property of the Corporation. The use and possession of the such items shall be subject to any policies, requirements or restrictions established by the Corporation. Such items may only be used in performance of the Employee's duties for the corporation. On request of the Corporation, the Employee shall immediately deliver any such items to the Corporation. Upon termination of employment, Employee shall have the affirmative duty to return any such item to the Corporation whether a request is made or not. The obligation to return Corporation property shall extend and include any and all work product, client property, proprietary rights, intangible property, and all other property of the corporation regardless of the form or medium. COMPENSATION The Corporation shall pay the Employee such hourly compensation as determined by the Corporation. Payment shall be at the same time as the Corporations usual payroll to other employees. BONUS & BENEFITS Payment of any bonuses shall be at the complete discretion of the Corporation. No guarantee or representation that any bonuses will be paid has been made to the Employee. Standard benefits that are provided to other non-management employees shall be offered to the Employee, subject to the Corporation's policies and the terms and conditions of such benefits. WITHHOLDING All sums payable to Employee under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. QUALIFICATIONS OF EMPLOYEE The employee shall satisfy all of the qualification that are established by the Corporation. TERM OF AGREEMENT There shall be no guaranteed term of employment. Employer acknowledges and agrees that Employee shall be an \"At Will\" Employee and that Employee's employment may be terminated at any time by the Corporation, with or without cause. FEES FROM EMPLOYEE'S WORK The Corporation shall have exclusive authority to determine the fees, or a procedure for establishing the fees, to be charged to clients by the Corporation for services that are provided by the Employee. All sums paid to the Employee or the Corporation in the way of fees, in cash or in kind, or otherwise for services of the Employee, shall, except as otherwise specifically agreed by the Corporation, be and remain the property of the Corporation and shall be included in the Corporation's name in such checking account or accounts as the Corporation may from time to time designate. CLIENTS AND CLIENT RECORDS The Corporation shall have the authority to determine who will be accepted as clients of the Corporation, and the Employee recognizes that such clients accepted are clients of the Corporation and not the Employee. All client records and files of any type concerning clients of the Corporation shall belong to and remain the property of the Corporation, notwithstanding the subsequent termination of the employment. POLICIES AND PROCEDURES The Corporation shall have the authority to establish from time to time the policies and procedures to be followed by the Employee in performing services for the Corporation. This may include, but is not necessarily limited to, employment policies, computer use policies, Internet access policies, email policies, and all other policies, procedures, directives, and mandates established by the Corporation, whether or not in written form or formally adopted. Employee shall abide by the provisions of any contract entered into by the Corporation under which the Employee provides services. Employee shall comply with the terms and conditions of any and all contracts entered by the Corporation. TERMINATION Employee acknowledges and agrees that Employee is an \"at will\" employee of the Corporation. As such, no term of employment is created hereby and employee may be terminated at any time in the sole discretion of the Corporation, whether there exists any cause for termination or not. CREATIONS AND INVENTIONS Employee acknowledges and agrees that any and all work product of the Employee that is conceived or created during the Employee's employment with the Corporation is the exclusive property of the Corporation. This shall include any and all copyrights, trade secrets, confidential information, patents, trademarks, trade dress, ideas, concepts, plans, business plans, business concepts, techniques, inventions, drawings, artwork, logos, graphics, web pages, databases, software, programs, CGI's, plug ins, applications, brochures, inventions, marketing plans and concepts, and all other ideas and work product of the Employee. The Employee acknowledges and agrees that all creations shall be \"works made for hire\" as defined in the [ACT OR CODE]. Notwithstanding the fact that this material may be considered to be a work made for hire, Employee agrees, during Employee's employment and thereafter, which covenant shall survive any termination of the employment relationship, to execute any and all documents requested by the Corporation to confirm the Corporation's ownership and control of all such material, including but not limited to assignments of copyright, confirmations of work for hire status, waivers of proprietary rights, copyright application, and any other documents requested by Corporation. RESTRICTIVE COVENANTS","Employment Agreement_At Will Employee","7","https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_at-will-employee-D541.png","https://templates.business-in-a-box.com/imgs/250px/541.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#541.xml",{"title":108,"description":6},"employment agreement_at will employee",[110,113,116],{"label":111,"url":112},"Human Resources","human-resources",{"label":114,"url":115},"Hire an Employee","hire-employee",{"label":18,"url":117},"business-legal-agreements","/template/employment-agreement_at-will-employee-D541",{"description":120,"descriptionCustom":6,"label":121,"pages":85,"size":122,"extension":10,"preview":123,"thumb":124,"svgFrame":125,"seoMetadata":126,"parents":127,"keywords":131,"url":132},"EMPLOYMENT AGREEMENT FOR AN EXECUTIVE This Employment Agreement for an Executive (the \"Agreement\") is made and effective this [Date], BETWEEN: [EXECUTIVE NAME] (the \"Executive\"), an individual with his main address at: AND: [COMPANY NAME] (the \"Company\"), an entity organized and existing under the laws of the [STATE/PROVINCE], with its head office located at: Recitals In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Company hereby employs the Executive and the Executive hereby agrees to perform services as an Executive of the Company, upon the following terms and conditions: TERM The Company hereby employs Executive to serve as [position] and to serve in such additional or different position or positions as the Company may determine in its sole discretion. The term of employment shall be for a period of [NUMBER] years (\"Employment Period\") to commence on [DATE], unless earlier terminated as set forth herein. The effective date of this Agreement shall be the date first set forth above, and it shall continue in effect until the earlier of: The effective date of any subsequent employment agreement between the Company and the Executive; The effective date of any termination of employment as provided elsewhere herein; or [NUMBER] year(s) from the effective date hereof, provided, that this Employment Agreement shall automatically renew for successive periods of [NUMBER] years each unless either party gives written notice to other that it does not wish to automatically renew this Agreement, which written notice must be received by the other party no less than [NUMBER] days and no more than [NUMBER] days prior to the expiration of the applicable term. Duties and Responsibilities Executive will be reporting to [IDENTIFY]. Within the limitations established by the By-laws of the Company, the Executive shall have each and all of the duties and responsibilities of that position and such other or different duties on behalf of the Company, as may be assigned from time to time by [identify what person or body may assign additional responsibilities]. Location The initial principal location at which Executive shall perform services for the Company shall be [location]. Acceptance of Employment Executive accepts employment with the Company upon the terms set forth above and agrees to devote all Executive's time, energy and ability to the interests of the Company, and to perform Executive's duties in an efficient, trustworthy and business-like manner. Devotion of Time to Employment The Executive shall devote the Executive's best efforts and substantially all of the Executive's working time to performing the duties on behalf of the Company. The Executive shall provide services during the normal business hours of the Company as determined by the Company. Reasonable amounts of time may be allotted to personal or outside business, charitable and professional activities and shall not constitute a violation of this Agreement provided such activities do not materially interfere with the services required to be rendered hereunder. QUALIFICATIONS The Executive shall, as a condition of this Agreement, satisfy all of the qualification that are reasonably and in good faith established by the Board of Directors. Compensation Base Salary Executive shall be paid a base salary (\"Base Salary\") at the annual rate of [salary], payable in bi-weekly installments consistent with Company's payroll practices. The annual Base Salary shall be reviewed on or before [DATE] of each year, unless Executive's employment hereunder shall have been terminated earlier pursuant to this Agreement, starting on [agreed upon date] by the Board of Directors of the Company to determine if such Base Salary should be increased for the following year in recognition of services to the Company. In consideration of the services under this Agreement, Executive shall be paid the aggregate of basic compensation, bonus and benefits as hereinafter set forth. Payment Payment of all compensation to Executive hereunder shall be made in accordance with the relevant Company policies in effect from time to time, including normal payroll practices. Bonus From time to time, the Company may pay to Executive a bonus out of net revenues of the Company. Payment of any bonus compensation shall be at the sole discretion of the Board of Directors or the Executive committee of the Board of Directors and the Executive shall have no entitlement to such amount absent a decision by the Company as aforesaid to make such bonus compensation. Executive shall also be entitled to a bonus determined as follows: [DESCRIBE] Benefits The Company shall provide Executive with such benefits as are provided to other senior management Of the Company. Benefits shall include at a minimum (i) paid vacation of [NUMBER] days per year, at such times as approved by the Board of Directors, (ii) health insurance coverage under the same terms as offered to other Executives of the Company, (iii) retirement and profit sharing programs as offered to other Executives of the Company, (iv) paid holidays as per the Company's policies, and (v) such other benefits and perquisites as are approved by the Board of Directors. The Company has the right to modify conditions of participation, terminate any benefit, or change insurance plans and other providers of such benefits in its sole discretion. The Executive shall be reimbursed for out of pocket expenses that are pre-approved by the Company, subject to the Company's policies and procedures therefore, and only for such items that are a necessary and integral part of the Executive's job functions. NonDeductible Compensation In the event a deduction shall be disallowed by the Internal Revenue Service or a court of competent jurisdiction for federal income tax purposes for all or any part of the payment made to Executive by the Company or any other shareholder or Executive of the Company, shall be required by the Internal Revenue Service to pay a deficiency on account of such disallowance, then Executive shall repay to the Company or such other individual required to make such payment, an amount equal to the tax imposed on the disallowed portion of such payment, plus any and all interest and penalties paid with respect thereto. The Company or other party required to make payment shall not be required to defend any proposed disallowance or other action by the Internal Revenue Service or any other state, federal, or local taxing authorities. Withholding All sums payable to Executive under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. Other Employment Benefits Business Expenses Upon submission of itemized expense statements in the manner specified by the Company, Executive shall be entitled to reimbursement for reasonable travel and other reasonable business expenses duly incurred by Executive in the performance of his duties under this Agreement. Benefit Plans Executive shall be entitled to participate in the Company's medical and dental plans, life and disability insurance plans and retirement plans pursuant to their terms and conditions. Executive shall be entitled to participate in any other benefit plan offered by the Company to its Executives during the term of this Agreement (other than stock option or stock incentive plans, which are governed by Section 3(d) below). Nothing in this Agreement shall preclude the Company or any affiliate of the Company from terminating or amending any Executive benefit plan or program from time to time. Vacation Executive shall be entitled to [agreed upon number of time] weeks of vacation each year of full employment, exclusive of legal holidays, as long as the scheduling of Executive's vacation does not interfere with the Company's normal business operations.","Employment Agreement Executive",97,"https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_executive-D543.png","https://templates.business-in-a-box.com/imgs/250px/543.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#543.xml",{"title":6,"description":6},[128,129,130],{"label":111,"url":112},{"label":114,"url":115},{"label":18,"url":117},"employment agreement executive","/template/employment-agreement-executive-D543",{"description":134,"descriptionCustom":6,"label":135,"pages":136,"size":137,"extension":10,"preview":138,"thumb":139,"svgFrame":140,"seoMetadata":141,"parents":142,"keywords":146,"url":147},"INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (\"Agreement\") is made and effective [Date], BETWEEN: [INDEPENDENT CONTRACTOR NAME] (the \"Independent Contractor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR 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: [YOUR COMPLETE ADDRESS] RECITALS Independent Contractor is engaged in providing [Describe] business services, its Employer Tax I.D. Number is [Insert], and its Business License Number is [insert]. Independent Contractor has complied with all Federal, State, and local laws regarding business permits, sales permits, licenses, reporting requirements, tax withholding requirements, and other legal requirements of any kind that may be required to carry out said business and the Scope of Work which is to be performed as an Independent Contractor pursuant to this Agreement. Independent Contractor is or remains open to conducting similar tasks or activities for clients other than the Company and holds themselves out to the public to be a separate business entity. Company desires to engage and contract for the services of the Independent Contractor to perform certain tasks as set forth below. Independent Contractor desires to enter into this Agreement and perform as an independent contractor for the company and is willing to do so on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and conditions contained in this Agreement, the Parties agree as follows: TERMS This Agreement shall be effective commencing [Date], and shall continue until terminated at the completion of the Scope of Work which shall occur no later than [Date] or by either party as otherwise provided herein. STATUS OF INDEPENDENT CONTRACTOR This Agreement does not constitute a hiring by either party. It is the parties intentions that Independent Contractor shall have an independent contractor status and not be an employee for any purposes, including, but not limited to, [laws]. Independent Contractor shall retain sole and absolute discretion in the manner and means of carrying out their activities and responsibilities under this Agreement. This Agreement shall not be considered or construed to be a partnership or joint venture, and the Company shall not be liable for any obligations incurred by Independent Contractor unless specifically authorized in writing. Independent Contractor shall not act as an agent of the Company, ostensibly or otherwise, nor bind the Company in any manner, unless specifically authorized to do so in writing. TASKS, DUTIES, AND SCOPE OF WORK Independent Contractor agrees to devote as much time, attention, and energy as necessary to complete or achieve the following: [Describe]. The above to be referred to in this Agreement as the \"Scope of Work\". It is expected that the Scope of Work will completed by [Date]. Independent Contractor shall additionally perform any and all tasks and duties associated with the Scope of Work set forth above, including but not limited to, work being performed already or related change orders. Independent Contractor shall not be entitled to engage in any activities which are not expressly set forth by this Agreement. The books and records related to the Scope of Work set forth in this Agreement shall be maintained by the Independent Contractor at the Independent Contractor's principal place of business and open to inspection by Company during regular working hours. Documents to which Company will be entitled to inspect include, but are not limited to, any and all contract documents, change orders/purchase orders and work authorized by Independent Contractor or Company on existing or potential projects related to this Agreement. Independent Contractor shall be responsible to the management and directors of Company, but Independent Contractor will not be required to follow or establish a regular or daily work schedule. Supply all necessary equipment, materials and supplies. Independent Contractor will not rely on the equipment or offices of Company for completion of tasks and duties set forth pursuant to this Agreement. Any advice given Independent Contractors regarding the scope of work shall be considered a suggestion only, not an instruction. Company retains the right to inspect, stop, or alter the work of Independent Contractor to assure its conformity with this Agreement. ASSURANCE OF SERVICES Independent Contractor will assure that the following individuals (the \"Key Employees\") will be available to perform, and will perform, the Services hereunder until they are completed (identify by title and name as applicable): [Name of Key Employee, Title] [Name of Key Employee, Title] The Key Employees may be changed only with the prior written approval of the Company, which approval shall not be unreasonably withheld. COMPENSATION Independent Contractor shall be entitled to compensation for performing those tasks and duties related to the Scope of Work as follows: [Describe] Such compensation shall become due and payable to Independent Contractor in the following time, place, and manner: [Describe] NOTICE CONCERNING WITHHOLDING OF TAXES Independent Contractor recognizes and understands that it will receive a [specify tax] statement and related tax statements, and will be required to file corporate and/or individual tax returns and to pay taxes in accordance with all provisions of applicable Federal and State law. Independent Contractor hereby promises and agrees to indemnify the Company for any damages or expenses, including attorney's fees, and legal expenses, incurred by the Company as a result of independent contractor's failure to make such required payments. AGREEMENT TO WAIVE RIGHTS TO BENEFITS Independent Contractor hereby waives and foregoes the right to receive any benefits given by Company to its regular employees, including, but not limited to, health benefits, vacation and sick leave benefits, profit sharing plans, etc. This waiver is applicable to all non-salary benefits which might otherwise be found to accrue to the Independent Contractor by virtue of their services to Company, and is effective for the entire duration of Independent Contractor's agreement with Company. This waiver is effective independently of Independent Contractor's employment status as adjudged for taxation purposes or for any other purpose. Neither this Agreement, nor any duties or obligations under this Agreement may be assigned by either party without the consent of the other. TERMINATION This Agreement may be terminated prior to the completion or achievement of the Scope of Work by either party giving [number] days written notice. Such termination shall not prejudice any other remedy to which the terminating party may be entitled, either by law, in equity, or under this Agreement. NON-DISCLOSURE OF TRADE SECRETS, CUSTOMER LISTS AND OTHER PROPRIETARY INFORMATION Independent Contractor agrees not to disclose or communicate, in any manner, either during or after Independent Contractor's agreement with Company, information about Company, its operations, clientele, or any other information, that relate to the business of Company including, but not limited to, the names of its customers, its marketing strategies, operations, or any other information of any kind which would be deemed confidential, a trade secret, a customer list, or other form of proprietary information of Company. Independent Contractor acknowledges that the above information is material and confidential and that it affects the profitability of Company. ","Independent Contractor Agreement","6",62,"https://templates.business-in-a-box.com/imgs/1000px/independent-contractor-agreement-D160.png","https://templates.business-in-a-box.com/imgs/250px/160.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#160.xml",{"title":6,"description":6},[143],{"label":144,"url":145},"Consultant & Contractors","consulting-contractor-business","independent contractor agreement","/template/independent-contractor-agreement-D160",{"description":149,"descriptionCustom":6,"label":150,"pages":151,"size":9,"extension":10,"preview":152,"thumb":153,"svgFrame":154,"seoMetadata":155,"parents":157,"keywords":156,"url":162},"PROFIT-SHARING AGREEMENT This Profit-Sharing Agreement (\"Agreement\") is entered into effect as of [DATE], BETWEEN: [COMPANY NAME], (\"Company\"), an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [EMPLOYEE/PARTNER NAMES], (\"Participants\") an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] PURPOSE OF THE AGREEMENT The Parties agree to establish the terms and conditions for the sharing of profits generated by the Company among the Participants based on their respective contributions and interests. DEFINITIONS 2.1 Profits: Net profits generated by the Company, calculated according to generally accepted accounting principles (GAAP). 2.2 Participant: An individual or entity that is a Party to this Agreement and entitled to a share of the profits. PROFIT SHARING PLAN 3.1 The Company shall establish a Profit-sharing Plan, the details of which are outlined in Exhibit A attached hereto. 3.2 The Profit-sharing Plan shall specify the distribution of profits among the Participants, including any criteria, percentages, or formulas used to determine each Participant's share. ","Profit Sharing Agreement","3","https://templates.business-in-a-box.com/imgs/1000px/profit-sharing-agreement-D13753.png","https://templates.business-in-a-box.com/imgs/250px/13753.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13753.xml",{"title":156,"description":6},"profit sharing agreement",[158,159],{"label":18,"url":117},{"label":160,"url":161},"Purchase & Sale Agreements","purchase-sale-agreement","/template/profit-sharing-agreement-D13753",{"description":164,"descriptionCustom":6,"label":165,"pages":103,"size":9,"extension":10,"preview":166,"thumb":167,"svgFrame":168,"seoMetadata":169,"parents":171,"keywords":170,"url":176},"REFERRAL AGREEMENT This Referral 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], [COUNTRY], with its head office located at: [COMPLETE ADDRESS] AND: [NAME OF REFERRER] (the \"Referrer\"), an individual with their main address located at: [YOUR COMPLETE ADDRESS] Collectively, the Company and the Referrer shall be referred to as the \"Parties.\" WHEREAS, the Company is engaged in the business of [SPECIFY THE BUSINESS] (the \"Services\"); and WHEREAS, the Referrer desires to refer potential clients (\"Referrals\") of the Services to the Company in exchange for a commission on any revenue generated by the Company as a result of such Introductions; NOW, THEREFORE, the Parties agree as follows: REFERRALS During the Term, the Referrer will make Introductions (as defined in Exhibit A) of the Company to potential clients for purposes of promoting the Services to such potential clients. The Referrer will use its professional judgment as to the appropriateness of a particular Introduction (recognizing that some Introductions may not be appropriate at a particular time or at any time). The Company will meet or conference and negotiate independently with a potential client after an Introduction with respect to a potential relationship and the terms applicable to such potential relationship. The Referrer may not object to any decisions made by the Company regarding the terms or conditions of a particular relationship entered into after an Introduction. Further, the Company will have sole discretion to enter into or not enter into an arrangement with a potential client. COMMISSION During the Term, the Company will pay the Referrer a commission (the \"Compensation\") on \"Collection Service Revenue\" generated because of Introductions by the Referrer in accordance with Exhibit A. The Compensation shall be considered complete consideration for all Referrals made during the Term. The Referrer shall be responsible for any and all income and other taxes applicable to it in connection with its receipt of Compensation pursuant hereto and as an independent contractor of the Company. The Company will not be responsible for any expenses of the Referrer in the course of the performance of its obligations hereunder unless such expenses have been previously approved in writing by the Company. TERM AND TERMINATION The Term (the \"Initial Term\") of this Agreement shall commence on the Effective Date and shall continue for a period of [NUMBER OF MONTHS] months. Prior to the end of the Initial Term and each \"Renewal Term\" (as hereafter defined), this Agreement will automatically extend for an additional [NUMBER OF MONTHS] month period (each, a \"Renewal Term\") unless either Party sends the other Party a notice of non-renewal at least [NUMBER OF DAYS] days prior to the expiration of the \"Term\" (as hereafter defined). The Initial Term and any Renewal Terms shall be collectively referred to herein as the \"Term.\" This Agreement may be terminated by either party upon [NUMBER OF DAYS] days' prior written notice. The following provisions shall survive the Termination Date: Representations and Warranties, Indemnification, Limitation of Liability, Confidentiality, Non-Competition and Non-Solicitation. INDEPENDENT CONTRACTOR RELATIONSHIP No Employment Relationship. The Company and the Referrer each expressly agree and understand that they are creating an independent contractor relationship, and that the Referrer shall not be considered an employee of the Company for any purpose. The Referrer is not entitled to receive or participate in any medical, retirement, vacation, paid or unpaid leave, or other benefits provided by the Company to its employees. The Referrer is exclusively responsible for all taxes and any other statutory benefits otherwise required to be provided to employees, and all fees and licenses, if any, required for the performance of the Services hereunder. No Exclusivity of Services Other Than to Competitors. This Agreement shall not restrict the Referrer from performing Services for other clients or businesses, provided, however, that during the Term of this Agreement, the Referrer shall not apply, bid, or contract for, or undertake any employment, independent contractor work or consulting work with any competitor of the Company. The determination of which businesses constitute \"competitors\" of the Company shall be solely within the exclusive discretion of the Company. Performance of Services for Competitors. The Referrer will notify the Company immediately if, during the Term, he engages, or proposes to engage, in the performance of Services for any competitor of the Company, or any vendor to or customer of the Company. If the Referrer performs Services, whether as an employee or an independent contractor, for a competitor of the Company during the Term of this Agreement, the Company may terminate this Agreement immediately and without further obligation. Additionally, to avoid the appearance or existence of a conflict of interest, during the Term, the Referrer must fully disclose in advance to the Company the terms of any proposed or actual Services for a vendor or customer of the Company, and the Company shall have the right in its sole discretion to disapprove the transaction on conflict of interest grounds, or alternatively, to terminate this Agreement immediately and without further obligation to the Referrer. REPRESENTATIONS AND WARRANTIES Each of the Referrer and the Company represents and warrants that: it has the right to enter into this Agreement and the right to grant the rights granted herein; it is not a party to any agreement, contract, or understanding that would prevent, limit or hinder its performance of this Agreement; during the Term, it will not enter into any contract, agreement or understanding which is in conflict or which would interfere with the full and complete performance of any of the duties or grants hereunder; and it is not a party to any pending claims or litigation which might affect its performance of this Agreement. The Referrer shall provide the Referrer Services diligently and as per industry standards. The Referrer shall not provide misleading information about the Company or its Services to any third party. The Referrer shall for the Term of the Agreement work exclusively with the Company and not work with any other similar and competing company, whether paid or free, to provide the Services. The Referrer shall conduct itself in a professional manner while performing the Referrer Services for the Company. The Referrer hereby represents and warrants that, as of the date hereof and continuing throughout the Term of this Agreement, they are not and will not be in any way restricted or prohibited, contractually or otherwise, from entering into this Agreement or performing the Referrer Services contemplated hereunder. Except as specifically set forth in this Agreement, to the maximum extent permitted by law, each Party disclaims all warranties and representations, whether express, implied, or statutory, with respect to the marketing services provided to the other Party and other obligations undertaken hereunder, including without limitation, the implied warranties of merchantability, fitness for a particular purpose (even if the Referrer has been informed of such purpose), or warranties arising from a course of dealing, usage or trade practice","Referral Agreement","https://templates.business-in-a-box.com/imgs/1000px/referral-agreement-D13279.png","https://templates.business-in-a-box.com/imgs/250px/13279.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13279.xml",{"title":170,"description":6},"referral agreement",[172,173],{"label":18,"url":117},{"label":174,"url":175},"Partnership Agreements","partnership-agreement","/template/referral-agreement-D13279",false,{"seo":179,"reviewer":190,"legal_disclaimer":194,"quick_facts":195,"at_a_glance":197,"personas":201,"variants":226,"glossary":252,"clauses":286,"how_to_fill":337,"common_mistakes":378,"faqs":403,"industries":431,"comparisons":448,"diy_vs_lawyer":461,"jurisdictions":474,"related_template_ids_curated":495,"schema":501,"classification":502},{"meta_title":180,"meta_description":181,"primary_keyword":182,"secondary_keywords":183},"Incentive Agreement Template | BIB","Free incentive agreement template covering performance metrics, calculation methods, payment timing, vesting, and clawback.","incentive agreement template",[15,184,185,186,187,188,189],"performance incentive agreement template","employee incentive agreement","incentive compensation agreement template","incentive plan agreement word","incentive agreement free download","bonus incentive agreement template",{"name":191,"credential":192,"reviewed_date":193},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":196,"legal_review_recommended":194,"signature_required":194,"notarization_required":177},"advanced",{"what_it_is":198,"when_you_need_it":199,"whats_inside":200},"An Incentive Agreement is a legally binding contract between an organization and an employee, contractor, or business partner that defines the conditions under which an incentive — cash bonus, commission, profit share, or equity-linked award — is earned, calculated, and paid. This free Word download gives you a structured, attorney-reviewable starting point you can edit online and export as PDF for immediate use.\n","Use it any time you are awarding performance-linked compensation beyond a base salary or flat fee — including annual bonuses, sales commissions, project completion incentives, or retention awards tied to a vesting schedule.\n","Definitions of the incentive type and covered participants, performance metrics and measurement methodology, calculation formula, payment timing and currency, vesting conditions, clawback provisions, termination treatment, and governing law.\n",[202,206,210,214,218,222],{"title":203,"use_case":204,"icon_asset_id":205},"HR directors and compensation managers","Formalizing annual bonus or commission plans for staff in writing","persona-hr-manager",{"title":207,"use_case":208,"icon_asset_id":209},"Startup founders and CEOs","Awarding milestone-based cash incentives to early employees or advisors","persona-startup-founder",{"title":211,"use_case":212,"icon_asset_id":213},"Sales managers","Documenting commission structures and accelerators for the sales team","persona-sales-manager",{"title":215,"use_case":216,"icon_asset_id":217},"Finance and CFO teams","Creating an auditable record of incentive obligations and accrual schedules","persona-cfo",{"title":219,"use_case":220,"icon_asset_id":221},"Business development and partnership leads","Structuring performance-linked payments for channel partners or referral partners","persona-business-development",{"title":223,"use_case":224,"icon_asset_id":225},"Private equity and portfolio company operators","Implementing management incentive plans tied to EBITDA or exit proceeds","persona-operations-director",[227,231,235,239,242,245,248],{"situation":228,"recommended_template":229,"slug":230},"Sales team earning commissions on closed revenue","Sales Commission Agreement","exclusive-sollicitation-sales-commission-agreement-D1242",{"situation":232,"recommended_template":233,"slug":234},"Senior executive with equity-linked long-term incentive plan","Executive Employment Agreement","employment-agreement-executive-D543",{"situation":236,"recommended_template":237,"slug":238},"Employee receiving a one-time retention or stay bonus","Retention Bonus Agreement","bonus-agreement-D13815",{"situation":240,"recommended_template":165,"slug":241},"Channel partner or reseller earning referral fees","referral-agreement-D13279",{"situation":243,"recommended_template":150,"slug":244},"Profit-sharing arrangement across all eligible employees","profit-sharing-agreement-D13753",{"situation":246,"recommended_template":135,"slug":247},"Contractor milestone payments tied to project deliverables","independent-contractor-agreement-D160",{"situation":249,"recommended_template":250,"slug":251},"Management team incentive tied to company sale or IPO proceeds","Management Incentive Plan","equity-incentive-plan-D13224",[253,256,259,262,265,268,271,274,277,280,283],{"term":254,"definition":255},"Incentive Compensation","Variable pay awarded on top of base salary when defined performance conditions are met — contrasted with fixed or guaranteed pay.",{"term":257,"definition":258},"Performance Metric","A quantifiable measure — such as revenue, EBITDA, units sold, or customer satisfaction score — against which incentive eligibility is evaluated.",{"term":260,"definition":261},"Target Incentive Amount","The incentive payout a participant earns if performance lands exactly at the defined target level, expressed as a dollar amount or percentage of base salary.",{"term":263,"definition":264},"Vesting Schedule","A timeline that determines when an incentive award becomes the irrevocable property of the recipient — typically cliff, graded, or milestone-based.",{"term":266,"definition":267},"Cliff Vesting","A structure in which no portion of the award vests until a specified date or milestone is reached, after which 100% (or a defined tranche) vests at once.",{"term":269,"definition":270},"Clawback Provision","A contractual right allowing the organization to reclaim previously paid incentive amounts if specific conditions arise — such as restatement of financials, misconduct, or voluntary departure within a defined period.",{"term":272,"definition":273},"Accelerator","An increased payout rate applied once performance exceeds a defined threshold — for example, 150% of target incentive for performance above 120% of quota.",{"term":275,"definition":276},"Performance Period","The defined timeframe — quarterly, annual, or multi-year — during which performance is measured to determine incentive eligibility.",{"term":278,"definition":279},"Threshold","The minimum performance level below which no incentive is paid; performance must meet or exceed this floor to trigger any award.",{"term":281,"definition":282},"Good Leaver / Bad Leaver","Classification of a departing participant that determines their entitlement to unvested or unpaid incentive amounts — good leavers typically retain pro-rata rights; bad leavers forfeit outstanding awards.",{"term":284,"definition":285},"Pro-Rata Award","An incentive payment adjusted proportionally to reflect partial completion of a performance period, typically applied when a participant joins mid-year or departs as a good leaver.",[287,292,297,302,307,312,317,322,327,332],{"name":288,"plain_english":289,"sample_language":290,"common_mistake":291},"Parties and recitals","Identifies the organization and the participant by legal name, describes the relationship (employment, contractor, or partnership), and states the purpose of the incentive arrangement.","This Incentive Agreement ('Agreement') is entered into as of [DATE] between [ORGANIZATION LEGAL NAME], a [STATE/COUNTRY] [ENTITY TYPE] ('Company'), and [PARTICIPANT FULL NAME] ('Participant'). The Company wishes to incentivize Participant's performance by providing the incentive compensation described herein.","Using a trade name instead of the registered legal entity name. A mismatch between the contracting entity and the payroll entity can create payment and enforcement problems if the incentive is disputed.",{"name":293,"plain_english":294,"sample_language":295,"common_mistake":296},"Incentive type and target amount","Specifies whether the award is a cash bonus, commission, profit share, or equity-linked payment, and states the target amount or percentage of base salary at 100% performance.","Participant is eligible for a cash incentive award of up to [X]% of Participant's annualized base salary ('Target Incentive'), representing $[AMOUNT] at 100% of Target Performance. The actual award may range from $0 to $[MAXIMUM AMOUNT] depending on performance achievement.","Stating only a maximum without defining the target and threshold. Without a defined floor (threshold), participants may claim entitlement to partial awards at any performance level.",{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Performance metrics and measurement methodology","Defines each performance metric, its weighting, the data source used to measure it, and who is responsible for final determination.","The Incentive is based on the following metrics: (a) [METRIC 1] ([X]% weighting), measured by [SOURCE/METHOD]; (b) [METRIC 2] ([X]% weighting), measured by [SOURCE/METHOD]. Final performance determinations shall be made by the Company's [TITLE/COMMITTEE] and shall be final and binding absent manifest error.","Leaving measurement methodology unspecified and relying on 'as determined by management.' Courts have found such provisions insufficiently certain, and disputes over measurement are the most common source of incentive litigation.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Performance period and calculation formula","Sets the start and end dates of the measurement window and provides the exact formula used to calculate the incentive payout from performance results.","The Performance Period runs from [START DATE] to [END DATE]. The incentive payout shall be calculated as: Target Incentive × (Actual [METRIC] / Target [METRIC]) × Weighting, subject to a maximum payout of [X]% of Target Incentive and a minimum of $0.","Including a formula without a cap. Without an explicit maximum, accelerator-heavy plans can generate unanticipated payout obligations that materially exceed budget.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"Payment timing and currency","States when the incentive will be paid after the performance period closes, the payment currency, and any conditions that must be satisfied before payment is made.","Earned incentive amounts shall be paid in [CURRENCY] within [X] days following the close of the Performance Period, subject to completion of the annual audit and Board approval. Payment shall be made via [PAYMENT METHOD] to the account on file with the Company's payroll department.","Not specifying a payment deadline. An incentive agreement without a payment date creates an implied obligation to pay within a 'reasonable time' — which is interpreted differently by courts across jurisdictions and can result in interest liability for delay.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"Vesting conditions","Describes any vesting schedule applicable to the award — cliff, graded, or milestone-based — and the conditions that must remain satisfied through each vesting date.","Earned incentive amounts are subject to the following vesting schedule: [X]% vests on [DATE], [X]% vests on [DATE], and the remaining [X]% vests on [DATE], provided Participant remains continuously employed and in good standing on each vesting date.","Omitting a vesting schedule for multi-year or retention-oriented incentives. Without vesting, a participant who resigns the day after an incentive is paid has no obligation to remain, undermining the retention purpose of the award.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Clawback and forfeiture","Sets out the specific events that trigger the company's right to recover previously paid or vested incentive amounts, including the recovery window and mechanism.","The Company may recover any incentive amounts paid hereunder if, within [X] months of payment: (a) the Company's financial results are restated downward due to material error or misconduct; (b) Participant is found to have engaged in conduct constituting Cause; or (c) Participant violates any post-employment restrictive covenant. Recovery shall be made by offset against future compensation or direct repayment within [X] days of notice.","Drafting a clawback clause without specifying the recovery mechanism. A right to reclaim without a defined repayment method or offset right is difficult to enforce practically, especially once the participant has left the organization.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Termination treatment","Defines what happens to unvested or unpaid incentive amounts when a participant's employment or engagement ends — distinguishing between termination for cause, resignation, redundancy, death, and disability.","Upon termination for Cause or voluntary resignation, Participant forfeits all unvested and unpaid incentive amounts. Upon termination without Cause, Participant shall receive a pro-rata incentive award calculated to the date of termination. Upon death or permanent disability, earned amounts vest immediately and are paid within [X] days.","Using a single termination clause that applies identically to all departure scenarios. Courts and employment tribunals routinely look at the circumstances of departure and apply pro-rata rights if the contract doesn't clearly distinguish termination types.",{"name":328,"plain_english":329,"sample_language":330,"common_mistake":331},"Discretion and adjustment","Reserves the company's right to adjust, modify, or cancel the incentive plan prospectively — while making clear that earned amounts for a completed performance period cannot be unilaterally reduced.","The Company reserves the right to modify the performance metrics, targets, or incentive structure for future Performance Periods upon [X] days' written notice to Participant. No modification shall reduce the incentive amount already earned for a Performance Period that has closed.","Asserting unlimited discretion to amend the plan at any time without protecting already-earned amounts. Courts in multiple jurisdictions have held that earned incentive compensation cannot be forfeited by retroactive plan amendments, regardless of what the contract says.",{"name":333,"plain_english":334,"sample_language":335,"common_mistake":336},"Governing law and dispute resolution","Specifies the jurisdiction whose employment and contract law governs the agreement and how disputes over earned or unpaid incentives will be resolved.","This Agreement is governed by the laws of [STATE/PROVINCE/COUNTRY]. Any dispute arising under this Agreement shall be submitted to binding arbitration administered by [AAA/JAMS/NAMED BODY] in [CITY], except that either party may seek injunctive relief in a court of competent jurisdiction without waiving the right to arbitrate.","Selecting a governing law that has no connection to where the participant works. Several jurisdictions — California and Ontario in particular — apply local wage and incentive payment laws regardless of a contrary choice-of-law clause.",[338,343,348,353,358,363,368,373],{"step":339,"title":340,"description":341,"tip":342},1,"Identify the parties and the incentive type","Enter the organization's full registered legal name and the participant's legal name. Specify whether the incentive is a cash bonus, commission, profit share, or other variable award.","Confirm the contracting entity is the same entity that runs payroll — mismatches between legal name and payroll entity are a common source of payment disputes.",{"step":344,"title":345,"description":346,"tip":347},2,"Define each performance metric precisely","List every metric, its weighting as a percentage of total incentive, the data source used to measure it, and who makes the final determination. Weighted metrics must sum to 100%.","Limit the plan to three to five metrics. More than five creates gaming behavior and makes the agreement hard to administer consistently.",{"step":349,"title":350,"description":351,"tip":352},3,"Set the threshold, target, and maximum payout levels","For each metric, define the minimum performance level that triggers any payment (threshold), the level that earns 100% of the target amount (target), and the absolute ceiling on payouts (maximum).","A threshold at 80% of target and a maximum at 150% is a common and defensible range — document the rationale for any departure from this in the recitals.",{"step":354,"title":355,"description":356,"tip":357},4,"Write out the calculation formula explicitly","Include the exact mathematical formula so the earned amount can be calculated independently by any party. Avoid prose descriptions alone — show the arithmetic with variables defined.","Attach a worked example as Schedule A showing a sample calculation at threshold, target, and maximum performance. This alone eliminates most incentive disputes.",{"step":359,"title":360,"description":361,"tip":362},5,"Specify payment timing and any preconditions","State the exact payment date or the maximum number of days after the performance period closes. List any conditions that must be met before payment — audit completion, board approval, continued employment.","Do not condition payment solely on 'continued employment at payment date' without also providing a pro-rata right for good leavers — several jurisdictions treat this as an unlawful wage forfeiture.",{"step":364,"title":365,"description":366,"tip":367},6,"Configure the vesting schedule and clawback trigger events","For retention-oriented awards, complete the vesting table with specific dates or milestones. List each clawback trigger event precisely, including the lookback window and the repayment mechanism.","Clawback provisions required under Dodd-Frank (public companies, US) and similar regulations must be drafted to the regulator's specific template — do not substitute this general-purpose clause for a compliance-specific one.",{"step":369,"title":370,"description":371,"tip":372},7,"Complete the termination treatment matrix","For each departure type (for cause, voluntary resignation, without cause, redundancy, death, disability), state whether the participant forfeits, receives pro-rata, or receives full payment.","Present this as a table rather than prose — a departure-type matrix is easier to administer, harder to dispute, and signals careful drafting to the participant.",{"step":374,"title":375,"description":376,"tip":377},8,"Execute before the performance period begins","Both parties must sign before the first day of the performance period. An incentive agreement signed after the period has started may be unenforceable for lack of consideration in common-law jurisdictions.","Use a timestamped e-signature tool and store the fully executed agreement alongside the participant's employment contract in your HR records system.",[379,383,387,391,395,399],{"mistake":380,"why_it_matters":381,"fix":382},"Vague or unmeasurable performance metrics","Courts and arbitrators require sufficient certainty for a contract to be enforceable. A metric defined as 'overall performance' or 'contribution to company success' gives courts no standard to apply and gives participants no basis to plan their work.","Define every metric with a named data source, a measurement date, and a responsible administrator. If the metric is qualitative, include a scoring rubric attached as a schedule.",{"mistake":384,"why_it_matters":385,"fix":386},"No cap on the maximum incentive payout","Accelerator structures without a ceiling can generate payouts far above budget in high-performance years, creating cash flow pressure and board-level disputes.","State an explicit maximum payout amount or percentage of target for each metric and for the aggregate plan. Document the cap in the calculation formula, not just in the text.",{"mistake":388,"why_it_matters":389,"fix":390},"Conditioning the entire award on employment at the payment date","Several US states treat a blanket forfeiture-on-termination clause as an unlawful wage deduction for amounts earned before separation. In Canada and the UK, similar protections apply under employment standards legislation.","Distinguish between vesting conditions (which are permissible) and forfeiture of already-earned amounts (which is often not). Provide a pro-rata right for good leavers.",{"mistake":392,"why_it_matters":393,"fix":394},"Signing the agreement after the performance period has started","In common-law jurisdictions, a participant who has already started working toward a metric has given no new consideration for the agreement. Restrictive covenants and clawback provisions signed mid-period may be unenforceable.","Execute the agreement on or before the first day of the performance period. If signing is delayed, provide documented additional consideration — a signing bonus or enhanced terms — at the time of execution.",{"mistake":396,"why_it_matters":397,"fix":398},"Asserting unlimited discretion to modify or cancel earned awards","A clause purporting to allow the company to cancel or reduce any incentive at any time for any reason has been struck down in numerous cases as void for uncertainty or as an unlawful unilateral variation of contract.","Limit modification rights to future performance periods only. State explicitly that incentive amounts earned for a closed performance period cannot be reduced by subsequent plan amendments.",{"mistake":400,"why_it_matters":401,"fix":402},"Choosing a governing law with no connection to the participant's work location","Jurisdictions like California, Ontario, and most EU member states apply local wage payment and earned commission laws regardless of the choice-of-law clause in the contract. A Delaware or Texas choice-of-law clause does not override California's earned wage protections.","Use the jurisdiction where the participant principally performs work as the governing law. If participants are in multiple jurisdictions, use jurisdiction-specific addenda rather than a single governing-law clause.",[404,407,410,413,416,419,422,425,428],{"question":405,"answer":406},"What is an incentive agreement?","An incentive agreement is a legally binding contract that sets out the conditions under which a participant — employee, contractor, or partner — earns variable compensation linked to defined performance metrics. It specifies the incentive type, how performance is measured, the calculation formula, payment timing, vesting schedule, and clawback rights. Unlike an informal bonus promise, a signed incentive agreement creates enforceable obligations on both sides.\n",{"question":408,"answer":409},"What should an incentive agreement include?","At minimum: the parties' legal names and relationship, the type and target amount of the incentive, the performance metrics and measurement methodology, the calculation formula with threshold, target, and maximum payout levels, the performance period, payment timing, vesting conditions, clawback trigger events, termination treatment by departure type, and governing law. Missing any of these creates gaps courts fill in ways that often favor the participant.\n",{"question":411,"answer":412},"Is an incentive agreement legally binding?","Yes, when properly drafted and executed before the performance period begins, an incentive agreement is generally enforceable as a binding contract in most jurisdictions. Courts look for offer, acceptance, and consideration — the participant's continued employment or work performance typically supplies the required consideration. Agreements signed after the performance period has started may face enforceability challenges in common-law jurisdictions without additional consideration.\n",{"question":414,"answer":415},"What is the difference between a bonus and an incentive agreement?","A discretionary bonus can be paid or withheld at the employer's option without creating legal liability, provided it is clearly labeled as discretionary. An incentive agreement creates a contractual entitlement to payment once the defined performance conditions are met — it cannot be withheld unilaterally after the participant has satisfied those conditions. The distinction matters greatly: several jurisdictions treat earned incentive compensation as wages, carrying statutory penalties for non-payment.\n",{"question":417,"answer":418},"What is a clawback provision in an incentive agreement?","A clawback provision allows the company to recover previously paid incentive amounts if defined trigger events occur after payment — most commonly a financial restatement, discovery of misconduct, or violation of restrictive covenants. The provision must specify the trigger events, the lookback window (typically 1–3 years), and the recovery mechanism (offset against future pay or direct repayment). Public companies in the US are subject to mandatory clawback requirements under SEC Rule 10D-1 and must use a regulator-specific clause rather than a general contractual provision.\n",{"question":420,"answer":421},"Can an employer change or cancel an incentive agreement mid-year?","Employers can generally modify incentive plans for future performance periods with reasonable advance notice. However, unilaterally reducing or canceling an award for a performance period that has already started or closed is likely to be treated as a breach of contract in most jurisdictions. Courts have consistently held that earned incentive compensation cannot be forfeited by retroactive plan amendments. A well-drafted agreement should limit modification rights explicitly to future periods.\n",{"question":423,"answer":424},"How are incentive payments taxed?","In most jurisdictions, cash incentive payments are treated as ordinary employment income and subject to income tax withholding and payroll taxes at the time of payment. In the US, supplemental wage payments may be withheld at a flat 22% federal rate (37% above $1M) or aggregated with regular wages. In the UK, cash bonuses are subject to PAYE and National Insurance. Equity-linked incentives have different tax treatment — consider consulting a tax advisor for plans involving options, restricted stock, or phantom equity.\n",{"question":426,"answer":427},"What happens to an incentive award if the participant leaves before payment?","This depends entirely on the agreement's termination treatment clause and applicable law. In many jurisdictions, incentive amounts earned during a completed performance period are treated as wages and cannot be forfeited solely because the participant leaves before the payment date. Good-leaver provisions typically entitle a departing participant to a pro-rata award based on time in role. Bad-leaver provisions (for cause or competitive resignation) typically allow forfeiture of unvested or unpaid amounts.\n",{"question":429,"answer":430},"Do I need a lawyer to draft an incentive agreement?","For straightforward cash bonus or commission plans for a single jurisdiction, a high-quality template is typically sufficient. Engage an employment lawyer when the incentive is tied to equity, the participant works across multiple jurisdictions, the plan includes meaningful clawback obligations, or the total potential payout is material to the business. A 1–2 hour review typically costs $300–$700 and is worthwhile for any plan where the maximum payout exceeds $50,000 or where the participant has significant leverage.\n",[432,436,440,444],{"industry":433,"icon_asset_id":434,"specifics":435},"Technology / SaaS","industry-saas","MRR attainment, net revenue retention, and product adoption metrics drive incentive calculations; multi-year vesting is standard for retention of engineering and product talent.",{"industry":437,"icon_asset_id":438,"specifics":439},"Financial Services","industry-fintech","Regulatory requirements under MiFID II, FINRA, and FCA Remuneration Codes impose mandatory deferral periods and enhanced clawback obligations on material risk-takers.",{"industry":441,"icon_asset_id":442,"specifics":443},"Professional Services","industry-professional-services","Billable hours, client origination, and realization rate are common metrics; cross-selling incentives require careful definition to prevent gaming of client ownership rules.",{"industry":445,"icon_asset_id":446,"specifics":447},"Manufacturing and Distribution","industry-manufacturing","Production throughput, quality defect rate, and on-time delivery percentages form the typical metric mix; safety performance is increasingly included as a gateway condition.",[449,452,456,459],{"vs":229,"vs_template_id":450,"summary":451},"sales-commission-agreement-D13234","A sales commission agreement is a specialized incentive document for revenue-producing roles, structured around quota attainment and closed-deal credit rules. An incentive agreement is broader — it covers any participant, any metric (financial or operational), and any incentive type. Use the commission agreement for sales teams; use the incentive agreement for non-sales roles or multi-metric plans.",{"vs":453,"vs_template_id":454,"summary":455},"Employment Contract","employment-agreement_at-will-employee-D541","An employment contract establishes the overall terms of the working relationship including base salary. An incentive agreement is a standalone or supplemental document governing variable compensation linked to performance. Referencing the incentive agreement in the employment contract — rather than embedding plan details — allows the incentive plan to be updated annually without requiring a contract amendment.",{"vs":150,"vs_template_id":457,"summary":458},"profit-sharing-agreement-D13319","A profit sharing agreement distributes a portion of company profits to eligible participants, typically using a predefined formula applied to net income or EBITDA. An incentive agreement can tie payments to any metric — individual, team, or company-wide — and can award fixed dollar amounts rather than profit pools. Profit sharing is generally collective; incentive agreements are typically individualized.",{"vs":233,"vs_template_id":234,"summary":460},"An executive employment agreement bundles all compensation terms — base salary, bonus, equity, severance, and restrictive covenants — into a single negotiated document. A standalone incentive agreement covers variable compensation only and is used when the incentive plan needs to be updated or replaced independently of the executive's broader employment terms. For C-suite hires, a standalone incentive agreement supplements rather than replaces the executive agreement.",{"use_template":462,"template_plus_review":466,"custom_drafted":470},{"best_for":463,"cost":464,"time":465},"Single-jurisdiction cash bonus or commission plans for non-executive employees with a maximum award below $50,000","Free","30–60 minutes",{"best_for":467,"cost":468,"time":469},"Plans covering multiple jurisdictions, senior employees, clawback obligations, or total potential awards above $50,000","$300–$700","2–4 days",{"best_for":471,"cost":472,"time":473},"Executive incentive plans with equity linkage, regulated-industry deferral requirements, or cross-border participant populations","$1,500–$5,000+","1–3 weeks",[475,480,485,490],{"code":476,"name":477,"flag_asset_id":478,"note":479},"us","United States","flag-us","Several states — including California, New York, and Illinois — treat earned incentive compensation as wages, making non-payment subject to wage claim penalties and attorney's fee awards. California additionally restricts post-employment clawback of earned commissions under Labor Code §204. Public companies must comply with SEC Rule 10D-1 mandatory clawback requirements for executive incentive plans, which override general contractual clawback provisions.",{"code":481,"name":482,"flag_asset_id":483,"note":484},"ca","Canada","flag-ca","Provincial employment standards legislation governs whether incentive amounts qualify as wages with statutory payment deadlines. Ontario courts have consistently awarded damages for incentive amounts that would have vested during the reasonable notice period following termination without cause, even when the plan contains a 'must be employed at payment date' clause. Quebec-based participants require bilingual or French-language plan documents for provincially regulated employers.",{"code":486,"name":487,"flag_asset_id":488,"note":489},"uk","United Kingdom","flag-uk","Discretionary bonus clauses must genuinely be exercised in good faith — UK courts have implied a duty not to exercise discretion irrationally or perversely. Financial services firms regulated by the FCA must comply with the Remuneration Code, which mandates minimum deferral periods and clawback windows of up to seven years for material risk-takers. Post-termination clawback is enforceable but must be proportionate and clearly defined.",{"code":491,"name":492,"flag_asset_id":493,"note":494},"eu","European Union","flag-eu","The EU Pay Transparency Directive requires organizations to provide employees with information about variable pay criteria and methods before the performance period begins. Financial sector firms fall under the EU Capital Requirements Directive IV, imposing mandatory deferral (minimum 40–60% of variable pay) and clawback requirements for identified staff. GDPR applies to the processing of performance data used to calculate incentive awards, requiring a lawful basis and data minimization.",[230,454,234,247,244,241,496,497,498,499,500,234],"non-disclosure-agreement-nda-D12692","general-non-compete-agreement-D882","employee-handbook-D712","job-offer-letter-long-D12769","fixed-term-contract-D13225",{"emit_how_to":194,"emit_defined_term":194},{"primary_folder":117,"secondary_folder":503,"document_type":504,"industry":505,"business_stage":506,"tags":507,"confidence":513},"employment-and-contractors","agreement","general","all-stages",[508,509,510,511,512],"contract","employee","incentive-agreement","compensation","bonus",0.92,"\u003Ch2>What is an Incentive Agreement?\u003C/h2>\n\u003Cp>An \u003Cstrong>Incentive Agreement\u003C/strong> is a legally binding contract between an organization and an employee, contractor, or business partner that defines the specific conditions under which variable compensation — a cash bonus, commission, profit-share payment, or other performance-linked award — is earned, calculated, and paid. Unlike a discretionary bonus that a company can withhold at will, a properly executed incentive agreement creates enforceable obligations: once a participant satisfies the defined performance conditions, the organization is contractually required to pay. The agreement covers the full lifecycle of an award, from the measurement methodology and calculation formula through vesting milestones, clawback trigger events, and the treatment of unvested amounts when a participant leaves.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Operating without a written incentive agreement exposes the organization to wage claims, litigation over disputed calculations, and the loss of leverage that clawback and vesting provisions are designed to create. Courts in California, New York, Ontario, and most EU member states treat earned incentive compensation as wages — meaning an unpaid or improperly canceled award can trigger statutory penalties, interest, and attorney's fee liability far exceeding the original award amount. Without a signed agreement, participants routinely assert that verbal promises or email exchanges constitute binding plans, and courts frequently agree. Conversely, a well-drafted incentive agreement gives the company the legal basis to recover payments after a financial restatement or breach of a restrictive covenant, and to enforce forfeiture where a participant departs under bad-leaver circumstances. This template provides the structure to document every material term before the performance period begins — the single most important factor in whether the agreement will be enforced.\u003C/p>\n",1778773505813]