This employee bonus policy template is ready to be tailored to your company's needs and can be a starting point for setting up your employment policies. This bonus announcement sample letter may be used as a memo to all workers or to an individual employee.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. This page contains Annual Bonus clauses in business contracts and legal agreements. We have organized these clauses into groups of similarly worded clauses. An incentive bonus agreement is a contract between an employer and employee that details information about a cash bonus offered as an incentive. Employee incentive awards recognize and reward excellence in university service. Incentive awards may be cash or noncash.