Beware! The “Other” Side of the LSRP Program. Edward Hogan David Harmon Charles Miller John Lushis, Jr. John Vanarthos Pat Collins. The material provided herein is for informational purposes only and is not intended as legal advice or counsel.
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John Lushis, Jr.
The material provided herein is for informational purposes only and is not intended as legal advice or counsel.
New Business Dynamic
Agreements with Employees/LSRP and Non-compete Issues – Protection of Company Assets and Retention of Talent
Ask the following questions regarding the LSRP, your employees and your business:
Executive, LSRP and rank and file employees privy to trade secrets and confidential/proprietary information, including customer relationships. Protection from competitors is critical.
Create binding contracts that impose reasonable restrictions on activity both during and after the employment and consulting relationships.
Put agreements into effect at the commencement of employment and/or consulting arrangements. Or, for employees make them concurrent with reviews and increases in compensation/benefits.
Why worry with LRSP issuing RAO?
Formula or salary multiple?
Push for a realistic value
John Lushis, Jr.
Articles of Incorporation
Certificate of Organization
Operating Agreement (continued)
Certificate of Partnership or Formation
Complying with the provisions of governing documents is critical to avoiding potential arguments that the entity is not legitimate.
An insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended disability of the member of the business specified in the policy.
To compensate the business for its losses and to facilitate business continuity when that key person is lost to the business
Death or disability would be a financial detriment to the company
What is covered?
Thank you for coming!