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Incentive Agreement
"I need an Incentive Agreement under Nigerian law for our sales team that includes quarterly commission structures and annual performance bonuses, with specific KPIs for different market segments and a clawback provision for deals that fall through."
1. Parties: Identification of the employer and employee(s) or beneficiary(ies) of the incentive agreement
2. Background: Context of the incentive program and its business purpose
3. Definitions: Key terms used throughout the agreement, including specific performance metrics and calculation methods
4. Term and Duration: Period during which the incentive agreement is valid and any renewal provisions
5. Incentive Structure: Detailed explanation of the incentive program, including types of incentives offered
6. Performance Metrics: Specific targets, KPIs, or objectives that must be met to earn incentives
7. Calculation Method: Formula and methodology for calculating incentive payments
8. Payment Terms: Timing, frequency, and method of incentive payments
9. Conditions Precedent: Prerequisites that must be satisfied before incentives can be earned or paid
10. Termination: Circumstances under which the agreement can be terminated and the consequences
11. Governing Law: Specification of Nigerian law as the governing law
12. Dispute Resolution: Process for resolving any disagreements about incentive calculations or payments
1. Confidentiality: Required when the incentive structure includes sensitive business information
2. Non-Competition: Include when incentives are significant and there's a need to protect business interests
3. Clawback Provisions: Include for high-value incentives or when there's a risk of performance manipulation
4. Tax Provisions: Detailed section needed when tax implications are complex or significant
5. Group Company Provisions: Include when incentives relate to performance across multiple affiliated companies
6. Change of Control: Include when incentives should be affected by company ownership changes
7. Force Majeure: Include when external factors could significantly impact ability to achieve incentive targets
1. Schedule 1 - Performance Metrics Detail: Detailed breakdown of all performance indicators and measurement methodologies
2. Schedule 2 - Calculation Examples: Sample calculations showing how incentives will be computed in various scenarios
3. Schedule 3 - Payment Schedule: Timing and structure of incentive payments throughout the year
4. Schedule 4 - Reporting Template: Standard format for reporting and tracking performance metrics
5. Schedule 5 - Eligible Positions/Participants: List of roles or individuals eligible for the incentive program
6. Appendix A - Tax Treatment Summary: Overview of tax implications and treatments of different incentive types
7. Appendix B - Approval Forms: Standard forms for approving incentive payments and processing
Authors
Financial Services
Technology
Manufacturing
Oil and Gas
Telecommunications
Retail
Professional Services
Healthcare
Real Estate
Construction
Agriculture
Mining
Education
Hospitality
Human Resources
Legal
Finance
Compliance
Operations
Sales
Executive Leadership
Performance Management
Compensation and Benefits
Internal Audit
Risk Management
Human Resources Director
Compensation and Benefits Manager
Legal Counsel
Chief Financial Officer
Sales Director
Performance Management Specialist
Compliance Officer
Operations Manager
Department Head
Regional Manager
Managing Director
HR Business Partner
Talent Management Director
Recruitment Manager
Employee Relations Manager
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