You don't state what mechanism is being used to assess and apply the 'penalty / incentive' regime, which I assume is based upon an amended Secondary Option X20 (Key Performance Indicators).
Assuming that the 'incentive' and 'penalty' payments are considered in a similar way to X6 (Bonus for early Completion) and X7 (Delay damages) assessments, these are not treated as PWDD so would not be included in a share calculation.
Consequently, you are correct in that the PWDD comes under the 1st bullet point and the other amounts are treated under either the 2nd or 3rd bullet points.
Assuming that the 'incentive' and 'penalty' payments are considered in a similar way to X6 (Bonus for early Completion) and X7 (Delay damages) assessments, these are not treated as PWDD so would not be included in a share calculation.
Consequently, you are correct in that the PWDD comes under the 1st bullet point and the other amounts are treated under either the 2nd or 3rd bullet points.