This income continuation protection agreement template has 3 pages and is a MS Word file type listed under our human resources documents.
Sample of our income continuation protection agreement template:
INCOME CONTINUATION PROTECTION AGREEMENT [COMPANY NAME] [ADDRESS] [DATE] [INDIVIDUAL NAME] Re: Income Continuation Protection Dear [INDIVIDUAL NAME], You have recently expressed your desire for financial protection in the event that [COMPANY NAME] ("the Company") decides to significantly decrease your current level of responsibilities ("Company's Decision"). This letter summarizes our agreement regarding what the Company will provide for you in that event. In exchange for your delivery of the documents described in paragraph II below, the Company will provide you with the following: Continued employment for [NUMBER] years ("Continued Employment") The Company will provide you with Continued Employment for [NUMBER] years; except, of course, your Continued Employment will end if you accept a position with another company. During the period of Continued Employment, you will remain an employee of the Company and, as such, will not be permitted to be associated with, or employed by, any other business without the written consent of the CEO or Chairman of the Company. Your duty, as an employee, to maintain the Company's trade secrets and confidential information and not to engage in any act inconsistent with an employee's duty of loyalty shall continue during this period of Continued Employment. At the end of Continued Employment, you and the Company can negotiate a new agreement that is acceptable to both [COMPANY NAME]. Salary and benefits continued during Continued Employment Your last base salary in effect at the time of the Company's Decision will continue to be paid every [NUMBER] weeks during the period of Continued Employment. You will not be eligible to receive salary increases during Continued Employment. During the period of Continued Employment, you will be eligible to participate in whatever medical plans, long-term disability plans, and life insurance plans the Company is currently offering. However, you will not be eligible to receive a car allowance. Additional benefits provided during the period of Continued Employment MANAGEMENT INCENTIVE COST AWARD PLAN ("MICAP") If you are still an employee at the time MICAP bonuses are actually paid out, then for each fiscal year (or portion thereof) occurring after the Company's Decision, you will receive a MICAP bonus equal to the average bonus given, during that fiscal year, to executives of the same grade level you held at the time of the Company's Decision. For partial fiscal years, you will receive a pro-rated bonus. You will not be eligible to receive any other bonuses during the period of Continued Employment. EXECUTIVE LONG-TERM CASH AWARD PERFORMANCE PLAN ("ELCAPP") As indicated below in paragraph II, all rights to ELCAPP will cease at the time of the Company's Decision. However, if you are still employed at the time ELCAPP bonuses are actually paid out, then you will receive an ELCAPP payment (pro- rated for the number of months during the ELCAPP cycle that you were an employee prior to the Company's Decision) if: (i) you had participated in the ELCAPP cycle for at least [NUMBER] months (i.e., one year of three) before the date of the Company's Decision; and (ii) ELCAPP payments were made for that particular ELCAPP cycle according to the terms of ELCAPP. You will not be eligible to participate in any ELCAPP cycles, which begin after the date of the Company's Decision. STOCK OPTIONS As long as you are still employed on the vesting date, you will vest in [PERCENTAGE %] of the options (discounted or otherwise) that vest during your period of Continued Employment. The other PERCENTAGE %] will be amended as noted in paragraphs [SPECIFY] below
