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Incentive Agreement
1. Parties: Identification of the company and the employee/participant
2. Background: Context of the agreement and its purpose
3. Definitions: Key terms used throughout the agreement
4. Incentive Grant: Details of the incentive being granted, including type and amount
5. Vesting Conditions: Terms and conditions for earning/vesting of the incentive
6. Performance Metrics: Specific targets or KPIs that determine the incentive amount
7. Payment Terms: Timing and method of incentive payments
8. Tax Obligations: Tax treatment and responsibilities of both parties
9. Employment Relationship: Impact on and relationship with employment terms
10. Termination Provisions: Consequences of employment termination on incentives
11. Confidentiality: Non-disclosure obligations regarding the agreement terms
12. Governing Law: Specification of Danish law as governing law
13. Signatures: Execution section for all parties
1. Share-Based Components: Required when incentives include stock options or share grants
2. Malus and Clawback: Include for financial sector or when requiring ability to reclaim payments
3. Non-Competition: Include when incentive is tied to post-employment restrictions
4. Group Company Provisions: Required when scheme involves multiple group entities
5. Currency Provisions: Include when payments may be made in multiple currencies
6. Data Protection: Detailed section required when extensive personal data processing is involved
7. Good/Bad Leaver Provisions: Include when different termination scenarios affect incentive rights
8. Corporate Events: Include provisions for mergers, acquisitions, or IPO scenarios
1. Calculation Method: Detailed formula and examples for calculating incentive amounts
2. Performance Criteria: Detailed description of KPIs and measurement methods
3. Vesting Schedule: Detailed timeline and conditions for incentive vesting
4. Tax Calculations: Examples of tax implications and calculations
5. Exercise Notice: Template for exercising options or claiming incentives
6. Acceptance Form: Form for accepting the incentive grant
7. Group Company List: List of relevant group companies if applicable
8. Historical Data: Relevant historical performance or price data for calculations
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