Rationale for Award: Provide a brief explanation of why the bonus is being awarded. An incentive bonus agreement is a contract between an employer and employee that details information about a cash bonus offered as an incentive.If you have an unpaid commission or bonus, contact the O'Brien Law Firm – and Kerry O'Brien, an Austin and Dallas Texas-board-certified employment attorney. Texas employment laws outline employer liability when it comes to comission and bonus laws. In this article, we will share a bonus cancellation letter example and review what your own letter template should include. What is a Bonus Plan? A bonus plan is an agreement between the employer and employee to pay out a predetermined amount of money based on performance. Learn how to write a professional bonus letter with our sample template. Get tips on format, key elements, and avoid common mistakes. A transition bonus agreement is a contract between an employer and departing employee that incentivizes the employee to stay with the company for a period.