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1. Parties: Identification of the parties entering into the agreement - the company and the beneficiary of the incentive scheme
2. Background: Context of the agreement, including the purpose of the incentive scheme and its relation to employment terms
3. Definitions: Detailed definitions of key terms used throughout the agreement, including performance metrics, calculation periods, and payment terms
4. Term and Duration: Period for which the incentive agreement is valid, including any renewal provisions
5. Incentive Structure: Detailed explanation of the incentive program, including types of incentives (e.g., cash bonuses, commission, stock options)
6. Performance Metrics: Clear definition of the performance criteria and targets that trigger incentive payments
7. Calculation Methodology: Detailed explanation of how incentives will be calculated, including formulas and measurement periods
8. Payment Terms: Timing and method of incentive payments, including any deferral mechanisms
9. Conditions Precedent: Any conditions that must be met before incentives become payable
10. Termination Provisions: Circumstances under which the agreement can be terminated and the impact on unpaid incentives
11. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts for dispute resolution
1. Clawback Provisions: Optional section for circumstances where the company may reclaim paid incentives, used in high-value or regulated environments
2. International Payments: Required when incentive payments are made across borders, addressing currency and compliance requirements
3. Group Company Provisions: Needed when the incentive scheme operates across multiple group companies
4. Non-Competition and Confidentiality: Additional restrictive covenants tied to the incentive scheme, used for senior employees or sensitive roles
5. Tax Provisions: Detailed tax treatment of incentives, required when tax implications are complex or for international employees
6. Change of Control: Provisions dealing with the impact of company ownership changes on the incentive scheme
1. Schedule 1 - Performance Targets: Detailed breakdown of specific performance targets and metrics
2. Schedule 2 - Calculation Examples: Worked examples showing how incentives are calculated in different scenarios
3. Schedule 3 - Payment Schedule: Timing and structure of incentive payments
4. Schedule 4 - Eligible Positions/Roles: List of positions or roles eligible for the incentive scheme
5. Appendix A - Incentive Acceptance Form: Form for employee acknowledgment and acceptance of incentive terms
6. Appendix B - Performance Review Form: Template for documenting performance against incentive criteria
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