Page 8 - Traditions Policies and Procedures
P. 8
Deferred Equity or Cash Option:
Above and beyond the normal compensation package the company will fund $_____ in a whole life
insurance account per year for 7 years (could vary based on age of vet, goals.). The company and the
associate is listed as owners of this policy during this 7 years for added tax benefit. The Company name
falls off at the end of the seven years.
After 7 years the associate has three options:
Take the money as cash
Keep the account and the company keeps adding funds as previous.
Use these funds to purchase equity at a pre-determined percentage of the company.
Contingencies:
Associate must get approved for the life insurance policy.
The added funds lost or reimbursed if resigning or fired for cause prior to 7 years.
Benefits above pay lost if resigned 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)
Added Funds: $120,000 (~$1,500/mo.) Available After 7 Years (Cash or Purchasing Equity)
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