Document:

cars-ex1026_413.htm

EXHIBIT 10.26

 
 

September 13, 2018 

 

 

 

 
John Clavadetscher [Address]

Re:Separation Agreement

Dear John:

This letter memorializes the terms we have agreed upon in connection with your separation of employment from Cars.com, LLC (the “Company”), in recognition of your long and valuable service to the Company and your agreement to assist us during the next 90 days with Doug Miller’s assumption of the role of Chief Revenue Officer.

1. Duties and Title. You have agreed to assist the Company for a 90-day period in a variety of efforts for which we both think that your prior position as Chief Revenue Office and long history with the Company will enable you to add real value. These include the following:

	
 
	
•
	
Assisting Doug Miller in his transition into his role, including understand the sales operation and personnel at the Company, making introductions to dealer and OEM customers, advising about a compensation plan and other elements of sales consultation.
	
 

	
 
	
•
	
Assisting in the hiring of sales directors for our National business

	
 
	
•
	
Assisting Matt Gold in due diligence for Project Veritas

	
 
	
•
	
Assisting the Company in making a recommendation of vendors among Pearl, DI, and Veritas for our Sell & Trade business
	
 

	
 
	
•
	
Assisting the Company in its efforts to secure an additive General Motors IMR deal
	
 

	
 
	
•
	
Providing other assistance as reasonably requested

 

Notwithstanding the foregoing, the Company understands and acknowledges that you have accepted alternative employment on a full-time basis; as such, it is understood and agreed that you may perform the above duties as may reasonably work within your schedule and remotely.  In the event the Company does not believe you are meeting your 

 

obligations in performing any of the duties set forth above, it will notify you in writing of such alleged breach of duties and provide you with fifteen (15) days to cure. 

	
 
	
2.
	
Term of Employment. Your last day as an employee of the Company will be Monday, September 17, 2018.

	
 
	
3.
	
Consideration. In consideration of your faithful performance of the services described above and in recognition of the circumstances surrounding your departure and your long service to the Company, Cars.com Inc. will provide you with continued vesting of all your time-based RSU equity awards (not your performance-based PSUs) for a period of18 months from your last day of employment, or through March 15, 2020, assuming that you have complied with your obligations under this letter agreement and your RCA (as defined below). Attachment A shows the equity grants in question and the dates they will vest, with estimated current values based on a CARS share price of $27.00.

a.By the terms of the SARS plan there is no continued vesting under that plan. Under the cash LTIP plan, you will receive a payout of your vested benefits in accordance with the terms of that plan, which may require deferral of payments for a stated period (generally six months) if required by Section 409A of the Internal Revenue Code.

	
 
	
4.
	
Release. You agree that you will sign our standard release agreement, which will be a condition to your receiving a grant of continued vesting of your equity awards.
	
 

	
 
	
5.
	
Restrictive Covenants. You previously entered into a Restrictive Covenant Agreement dated March 6, 2007 with Cars.com (f/k/a Classified Ventures, LLC) (the “RCA”), which included certain provisions regarding non-competition, non-solicitation, non-recruitment, non-assistance, and confidentiality. By the terms of the RCA itself, you continue to be bound by those obligations even after the termination of your employment. This letter agreement does not supersede or replace the RCA. By signing below, you acknowledge and agree that you continue to be bound by the RCA.

 

	
 
	
6.
	
Earned But Unused Vacation.  The Company agrees that it will pay you your earned but unused vacation (in the amount of approximately $21,000, less applicable taxes and withholdings, in the first normal payroll period following your last day of employment.
	
 

	
 
	
7.
	
General. This letter agreement (together with the Release Agreement) constitutes the entire agreement between you and the Company concerning its subject matter and will be governed by Illinois law.
	
 

Please indicate your agreement by countersigning below.

Very truly yours, CARS.COM, LLC

By:/s/ James F. Rogers

CARS.COM, Inc.

By:/s/ James F. Rogers

 

Acknowledged and Agreed:

/s/ John Clavadetscher

JOHN CLAVADETSCHER

 

 

 

 

ATTACHMENT A

Summary of John Clavadetscher Continued Vesting of Equity As of August 29, 2018

Number of Unvested Shares by Vest Date

								
	
Summary of Equity Included in Continued Vesting*
	
Vesting under 1 year continued vesting
	
Vesting under additional 6 months 
continued vesting

	
Vesting Date
	
RSUs
	
 
	
12/31/18-

1/1/2019
	
3/1/2019
	
6/9/2019
	
12/31/19-

1/1/2020
	
3/1/2018

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Grant Date*
	
Initial Total Grant
	
Approximate Per Tranche (rounded; one tranch may be 1 share less)
	
 
	
 
	
 
	
 
	
 

	
1/1/2016
	
1637
	
410
	
409
	
 
	
 
	
410
	
 

	
1/1/2017
	
5422
	
1356
	
1,356
	
 
	
 
	
1,356
	
 

	
3/21/2017
	
903
	
226
	
226
	
 
	
 
	
226
	
 

	
6/9/2017
	
5812
	
1453
	
 
	
 
	
1,453
	
 
	
 

	
3/1/2018
	
8135
	
2034
	
 
	
2,034
	
 
	
 
	
2,034

	
Total Vesting
	
 
	
 
	
1,991
	
2,034
	
1,453
	
1,992
	
2,034

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Estimated Stock Price
	
 
	
$27.00
	
 
	
 
	
 
	
 
	
 

	
Estimated value by grant vesting
	
 
	
 
	
$53,757
	
$54,918
	
$39,231
	
$53,784
	
$54,918

	
Estimated cumulative value for 1 year of continued vesting
	
$53,757
	
$108,675
	
$147,906
	
 
	
 

	
Estimated cumulative value for an additional 6 months of vesting
	
 
	
 
	
 
	
$53,784
	
$108,702

 

Estimated cumulative value for total continued vesting 0f 18 months$256,608

*Excludes PSU grant awarded on 3/20/18cars-ex1027_411.htm

EXHIBIT 10.27
 
 

 

July 9, 2018

Doug Miller [Address]

 

Dear Doug:

 

We are delighted that you will be joining Cars.com. We are confident that as part of our team, you will help us achieve our goal to be the No. 1 digital automotive marketplace for car buyers and sellers.

 

In your role of Chief Revenue Officer, you will report to me and we hope you can start by August 1, 2018. Your annualized base compensation in this exempt position, as agreed, will be $400,000. You will be eligible for an annual performance bonus (known as our Short-Term Incentive Plan or “STIP) calculated at 110% of your actual base earnings each year. You will also be eligible to participate in our comprehensive benefits package including 4 weeks annual vacation time, prorated based on start date.

We are also recommending you for a grant of Cars.com Restricted Stock Units (“RSUs”) and Performance Based Restricted Stock Units (“PSUs”). The value of the that grant is $308,333 which reflects the sum of a one-time new hire grant of $100,000 and a pro-rated annual grant of $208,333; split 50% RSUs and 50% PSUs. The number of RSUs and PSUs you receive will be rounded to the nearest whole share based on the closing price of Cars.com stock on the grant date. In future years, your target equity award will be 125% of annual base salary. As a result, your annual compensation package, pending the achievement of individual performance, company performance and vesting would sum to approximately $1,340,000.

 

Any grant is not official until it is formally authorized by the Compensation Committee of our Board of Directors in accordance with our normal grant process, which is typically quarterly. You will need to accept an award agreement to receive. The RSUs granted will vest at 25% per year over 4 years commencing on the actual date of grant. The PSUs will be based on achievement of Performance Measures established by the Company and vest over 3 years.

 

These incentive plans may be amended or terminated at any time and for any reason. Also, your final award values are based on the Company’s and your performance and applicable guidelines, which may be changed at any time.

 

To offset relocation expenses, you will receive a one-time special bonus in the gross amount of $100,000, subject to applicable taxes. This will be payable as soon as administratively possible after your relocation; we expect your relocation to occur within 1 year of your start date. In the event that you voluntarily terminate employment, or you are terminated for cause within 12 months of the date the special bonus is paid, you will be required to repay 100% of the bonus amount to Cars.com.

 

You will receive an email from Cars.com Onboarding containing a link with log-in credentials for our onboarding website, Greenhouse Onboarding. This site will further and guide you through the process of completing your new hire paperwork prior to your first day, as well as give you the opportunity to learn more about our business. Upon receipt of your log-in credentials, please begin work on your task list. Within that list, are instructions for uploading your signed offer letter and Restrictive Covenant Agreement. Please complete this at your earliest opportunity.

 

Doug, we recognize that we will achieve success only by attracting and retaining the finest talent available. We are confident that you will find your work with Cars.com personally and professionally rewarding and that you will play a vital role in contributing to our future success.

 

Congratulations and welcome,

 

 

Alex Vetter

Chief Executive Officerwll_Ex10_3

		
			Exhibit 10.3
		

		
			Director Compensation
		

		
			Effective January 1, 2019, non-employee director compensation is as follows:
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Committee Service

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Nominating

				
	
					
						 

					
					
						 

					
					
						Board

					
					
						 

					
					
						Lead

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						and

				
	
					
						 

					
					
						    

					
					
						 Service

					
					
						    

					
					
						Director

					
					
						    

					
					
						Audit

					
					
						    

					
					
						Compensation

					
					
						    

					
					
						Governance

				
	
					
						Annual retainer

					
					
						 

					
					
						$

					
					
						 75,000

					
					
						 

					
					
						$

					
					
						  —

					
					
						 

					
					
						$

					
					
						  —

					
					
						 

					
					
						$

					
					
						  —

					
					
						 

					
					
						$

					
					
						  —

				
	
					
						Restricted stock (value), one year vesting

					
					
						 

					
					
						 

					
					
						 180,000

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

				
	
					
						Lead annual retainer

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						 20,000

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

				
	
					
						Lead restricted stock (value)

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						 15,000

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

				
	
					
						Committee chair annual retainer

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						 25,000

					
					
						 

					
					
						 

					
					
						 15,000

					
					
						 

					
					
						 

					
					
						 15,000

				
	
					
						Committee chair restricted stock (value)

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						 25,000

					
					
						 

					
					
						 

					
					
						 15,000

					
					
						 

					
					
						 

					
					
						 15,000

				
	
					
						Committee member annual retainer

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						 10,000

					
					
						 

					
					
						 

					
					
						 5,000

					
					
						 

					
					
						 

					
					
						 5,000

				
	
					
						Meeting fee

					
					
						 

					
					
						 

					
					
						 1,500

					
					
						 

					
					
						 

					
					
						  —

					
					
						 

					
					
						 

					
					
						 1,500

					
					
						 

					
					
						 

					
					
						 1,500

					
					
						 

					
					
						 

					
					
						 1,500

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}]]