Page 7 - Traditions Policies and Procedures
P. 7
1002.01 – Associate Buy-In Options
Gifted Equity Option:
After one year of satisfactory employment the company will gift the associate __% equity in the
company. At that point, the associate will receive appropriate percentage of shareholder
disbursements/profits IN ADDITION to their normal salary and benefit package.
After each additional year of satisfactory employment the company will gift the associate an additional
__% equity (up to a maximum of 30%). The associate will also always have the first right of refusal to
purchase the company in full when shareholders agree to sell.
Contingency:
Benefits above pay lost if resigning without 120 days-notice or fired for cause in year one.
Death Benefit during the first seven years goes to the company.
Example:
Salary: 20% of production (up to ~$250,000 per year)
Benefits: Health Insurance Stipend, PTO, CE Allowance, CE PTO, Uniforms,
Training: TVS Ownership and Management Training (Including Licensure of Manuals)
At Purchase: $70,000 Salary plus benefits (Practice Gross Income $350,000/year)
Year 1: $140,000 Salary plus benefits (Practice Gross Income $800,000/year)
$21,000 Equity Value (5%) ($800,000 @ 15% net, Value 3.5 x Net)
Year 2: $200,000 Salary plus benefits (Practice Gross Income $1.2 mil/year)
$48,000 Equity Value (8%) ($1.2 mil @ 15% net, Value 3.5 x Net)
$9,600 Shareholder Distribution (Disbursement 10% of gross X 8% equity)
Year 3: $220,000 Salary plus benefits (Practice Gross Income $1.5 mil/year)
$150,000 Equity Value (10%) ($1.5 mil @ 15% net, Value 3.5 X Net)
$15,000 Shareholder Distribution (Distribution 10% of gross X 10% equity)
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