Bonus Agreement

Summary

This template is a bonus agreement that provides a roadmap to follow when determining the criteria associated with the bonus and other requirements related to bonus agreements. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template is intended for private employers. It is based on federal law and does not address all potential state law distinctions; thus, you should check any relevant state and local laws. For information on bonus agreement drafting and design, see Incentive Bonus Agreement Design, Bonus Agreements: Key Drafting Tips, and Incentive Bonus Agreement Design. For other types of bonus agreement templates, see Sign-On Bonus Agreement, Long-Term Incentive Cash Bonus Agreement, and Short-Term Incentive Cash Bonus Agreement. For more information on bonus agreements, see Emp. Cont. & Agreements: A Guide for Corp. Counsel §§ 3.01–3.10. For a full listing of key content that can be used by in-house counsel to develop, revise, and implement a company's employee and third-party-related policies, see In-House Company Policies Resource Kit.