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Retention Bonus And Severance Agreement
"I need a Retention Bonus And Severance Agreement for our tech development team of 15 employees during our upcoming merger, with a retention period until March 2025 and a bonus payment of 25% of their annual salary."
1. Parties: Identifies the employer and employee entering into the agreement
2. Background: Sets out the context and purpose of the agreement, including the employee's current position and reason for retention incentive
3. Definitions: Defines key terms used throughout the agreement
4. Retention Period: Specifies the duration during which the employee must remain employed to receive the retention bonus
5. Retention Bonus: Details the amount, calculation method, and payment terms of the retention bonus
6. Conditions for Bonus Payment: Outlines the conditions that must be met to receive the retention bonus
7. Severance Terms: Specifies the conditions under which severance will be paid and the calculation method
8. Confidentiality: Requires both parties to maintain confidentiality about the terms of the agreement
9. Continuing Obligations: Outlines the employee's ongoing duties during the retention period
10. Tax Treatment: Addresses the tax implications of both the retention bonus and severance payment
11. Governing Law: Specifies that Malaysian law governs the agreement
12. Entire Agreement: Confirms that this document represents the complete agreement between parties
1. Non-Competition: Includes restrictions on working for competitors, used when the employee has access to sensitive information
2. Non-Solicitation: Prevents the employee from soliciting other employees or customers, included for senior positions
3. Intellectual Property: Addresses ownership of IP created during the retention period, needed for technical or creative roles
4. Change of Control: Specifies what happens if the company undergoes a merger or acquisition during the retention period
5. Performance Criteria: Additional performance requirements for bonus eligibility, used when retention alone is not sufficient
6. Clawback Provisions: Allows recovery of paid bonuses under specific circumstances, used for senior executives or high-value payments
7. Alternative Dispute Resolution: Specifies mediation or arbitration procedures, useful for high-value agreements
1. Schedule 1 - Bonus Calculation: Detailed formula and examples for calculating the retention bonus
2. Schedule 2 - Severance Calculation: Detailed formula and examples for calculating severance payment
3. Schedule 3 - Payment Timeline: Specific dates or milestones for bonus and severance payments
4. Schedule 4 - Performance Metrics: Detailed performance criteria if applicable to bonus eligibility
5. Appendix A - Employee's Current Benefits: List of current benefits and how they interact with the agreement
6. Appendix B - Confidential Information: Detailed description of what constitutes confidential information
Authors
Technology
Financial Services
Manufacturing
Professional Services
Healthcare
Telecommunications
Energy
Mining
Construction
Education
Retail
Hospitality
Pharmaceutical
Automotive
Aerospace
Human Resources
Legal
Finance
Executive Leadership
Operations
Information Technology
Research and Development
Sales
Engineering
Product Development
Customer Service
Manufacturing
Chief Executive Officer
Chief Financial Officer
Chief Technology Officer
Senior Manager
Department Head
Project Manager
Technical Lead
Senior Engineer
Key Account Manager
Research Director
Operations Manager
Senior Developer
Principal Scientist
Regional Manager
Division Head
Senior Consultant
Product Manager
Financial Controller
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