Retention Incentive Service Agreement Template

1. Introduction: An introductory section that identifies the parties involved, including the employer (referred to as the "Company") and the employee (referred to as the "Recipient").
2. Purpose: A statement outlining the purpose of the retention incentive, such as retaining key talent, ensuring continuity of operations, or supporting a specific project or initiative.
3. Eligibility Criteria: Clear criteria defining which employees are eligible to receive the retention incentive, such as job title, department, tenure, or performance metrics.
4. Retention Period: The duration of the retention period for which the employee is required to remain with the company to receive the incentive, typically specified as a certain number of months or years.
5. Incentive Amount: The total amount of the retention incentive offered to the employee, as well as any additional terms or conditions governing the calculation or distribution of the incentive.
6. Payment Schedule: Details regarding the timing and method of payment for the retention incentive, including the frequency of payments (e.g., lump sum, installment payments) and any conditions precedent to payment.
7. Obligations: Any obligations or commitments required of the employee during the retention period, such as maintaining satisfactory performance, adherence to company policies, or participation in specific activities or projects.
8. Termination of Employment: Conditions under which the retention incentive may be forfeited or clawed back in the event of voluntary resignation, termination for cause, or other specified circumstances.
9. Confidentiality and Non-Disclosure: Obligations regarding the protection and handling of confidential information related to the retention incentive, as well as any non-disclosure requirements.
10. Governing Law and Jurisdiction: Specification of the jurisdiction whose laws will govern the interpretation and enforcement of the agreement, as well as the venue for resolving disputes.
11. Miscellaneous Provisions: Any additional terms or conditions relevant to the specific agreement, such as warranties, insurance requirements, or regulatory compliance.

It's important to note that while a Sample Retention Incentive Service Agreement Template provides a starting point for drafting an agreement, it should be customized to reflect the specific details and requirements of each retention incentive arrangement. Additionally, it's recommended to seek legal advice to ensure compliance with relevant employment laws and regulations and to address any potential legal or tax implications of the incentive.