Document:

Document

Exhibit 10.19
CONFIDENTIAL – EXECUTION COPY

VACASA LLC
CHANGE IN CONTROL AND RETENTION AGREEMENT
This Change in Control and Retention Agreement (the “Agreement”) is made between Vacasa LLC (the “Company”) and Jamie Cohen on (the “Executive”), effective as of March 1, 2021 (the “Effective Date”).
This Agreement provides certain protections to the Executive in connection with a change in control of the Company or in connection with the involuntary termination of the Executive’s employment under the circumstances described in this Agreement.  
The Company and the Executive agree as follows:
1.Term of Agreement.  This Agreement will continue indefinitely until terminated by written consent of the parties hereto. Notwithstanding the previous sentence, if Executive becomes entitled to benefits pursuant to Section 3 of this Agreement, the Agreement will terminate when all of the obligations of the parties hereto with respect to this Agreement have been satisfied.
2.At-Will Employment.  The Company and the Executive acknowledge that the Executive’s employment is and will continue to be at-will, as defined under applicable law.   
3.Severance Benefits.
(a)Qualifying Termination.  On a Qualifying Termination (as defined below), the Executive will be eligible to receive the following payments and benefits from the Company:
(i)Salary Severance.  A single, lump sum payment equal to twelve (12) months of the Executive’s Salary (as defined below), less applicable withholdings.  
(ii)COBRA Reimbursement.  Subject to Section 3(d), the Company will reimburse Executive for the cost of coverage under COBRA (as defined below) for the Executive and the Executive’s eligible dependents, if any, at the rates then in effect, subject to any subsequent changes in rates that are generally applicable to the Company’s active employees (the “COBRA Coverage”), until the earliest of (A) a period of twelve (12) months from the date of the Executive’s termination of employment, (B) the date upon which the Executive (and the Executive’s eligible dependents, as applicable) becomes covered under similar plans, or (C) the date upon which the Executive ceases to be eligible for coverage under COBRA.  
(iii)Equity Awards.  The Executive will also receive vesting acceleration (and exercisability, as applicable) as to the Executive’s Company equity awards (“Awards”) that are then outstanding and unvested as to the portion of those Awards that would have otherwise vested during the twelve (12)-month period following the date of the Qualifying Termination had the Executive remained employed with the Company during such period.  In the case of an Award with performance-based vesting for which the performance period is set to expire during the twelve (12)-month period following the date of the Qualifying Termination, unless otherwise specified in the applicable Award agreement governing such Award, all performance goals and other vesting criteria will be deemed achieved at 100% of target levels.

(b)Qualifying CIC Termination.  In addition to the payments and benefits set forth in Sections 3(a)(i) and 3(a)(ii) above, upon a Qualifying CIC Termination, the Executive will also receive vesting acceleration (and exercisability, as applicable) as to 100% of the Awards that are then outstanding and unvested.  In the case of an Award with performance-based vesting, unless otherwise specified in the applicable Award agreement governing such Award, all performance goals and other vesting criteria will be deemed achieved at 100% of target levels.  For the avoidance of doubt, in the event of the Executive’s Qualifying Pre-CIC Termination (as defined below), any unvested portion of the Executive’s then-outstanding Awards (after taking into account the vesting acceleration that will have already occurred pursuant to Section 3(a)(iii)) will remain outstanding until the earlier of (x) three (3) months following the initial Qualifying Termination or (y) the occurrence of a Change in Control, solely so that any benefits due on a Qualifying Pre-CIC Termination can be provided if a Change in Control occurs within three (3) months following the initial Qualifying Termination (provided that in no event will the Executive’s Awards remain outstanding beyond the Award’s maximum term to expiration).  If no Change in Control occurs within three (3) months following a Qualifying Termination, any unvested portion of the Executive’s Awards (after taking into account the vesting acceleration that will have already occurred pursuant to Section 3(a)(iii)) will automatically and permanently will be forfeited on the third (3rd) month following the date of the Qualifying Termination without having vested.  
(c)Termination Other Than a Qualifying Termination.  If the termination of the Executive’s employment with the Company Group is not a Qualifying Termination, then the Executive will not be entitled to receive severance or other benefits.
(a)Conditions to Receipt of COBRA Coverage.  The reimbursement of Executive’s COBRA Coverage under Section 3(a)(ii) above is subject to the Executive electing COBRA continuation coverage within the time period prescribed pursuant to COBRA for the Executive and the Executive’s eligible dependents, if any.  If the Company determines in its sole discretion that it cannot reimburse the COBRA Coverage without potentially violating, or being subject to an excise tax under, applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then in lieu of any COBRA Coverage, the Company will provide to the Executive a taxable monthly payment payable on the last day of a given month (except as provided by the immediately following sentence), in an amount equal to the monthly COBRA premium that the Executive would be required to pay to continue his or her group health coverage in effect on the date of his or her Qualifying Termination (which amount will be based on the premium rates applicable for the first month of COBRA Coverage for the Executive and any of eligible dependents of the Executive) (each, a “COBRA Replacement Payment”), which COBRA Replacement Payments will be made regardless of whether the Executive elects COBRA continuation coverage and will end on the earlier of (x) the date upon which the Executive obtains other employment or (y) the date the Company has paid an amount totaling the number of COBRA Replacement Payments equal to the number of months in the applicable COBRA Coverage period.  For the avoidance of doubt, the COBRA Replacement Payments may be used for any purpose, including, but not limited to continuation coverage under COBRA, and will be subject to any applicable withholdings.  Notwithstanding anything to the contrary under this Agreement, if the Company determines in its sole discretion at any time that it cannot provide the COBRA Replacement Payments without violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Executive will not receive the COBRA Replacement Payments or any reimbursement for further COBRA Coverage.  
2

(b)Non-Duplication of Payment or Benefits.  Notwithstanding any provision of this Agreement to the contrary, if the Executive is entitled to any cash severance, continued health coverage benefits, or vesting acceleration of any Awards (other than under this Agreement) by operation of applicable law or under a plan, policy, contract, or arrangement sponsored by or to which any member of the Company Group is a party (“Other Benefits”), then the corresponding severance payments and benefits under this Agreement will be reduced by the amount of Other Benefits paid or provided to the Executive. 
(c)Death of the Executive.  In the event of the Executive’s death before all payments or benefits the Executive is entitled to receive under this Agreement have been provided, the unpaid amounts will be provided to the Executive’s designated beneficiary, if living, or otherwise to the Executive’s personal representative in a single lump sum as soon as possible following the Executive’s death.
(d)Transfer Between Members of the Company Group.  For purposes of this Agreement, if the Executive is involuntarily transferred from one member of the Company Group to another, the transfer will not be a termination without Cause.
(e)Exclusive Remedy.  In the event of a termination of the Executive’s employment with the Company Group, the provisions of this Agreement are intended to be and are exclusive and in lieu of any other rights or remedies to which the Executive may otherwise be entitled, whether at law, tort or contract, or in equity.  The Executive will be entitled to no benefits, compensation or other payments or rights upon termination of employment other than those benefits expressly set forth in this Agreement.
4.Accrued Compensation.  On any termination of the Executive’s employment with the Company Group, the Executive will be entitled to receive all accrued but unpaid vacation, expense reimbursements, wages, and other benefits due to the Executive under any Company-provided plans, policies, and arrangements.
5.Conditions to Receipt of Severance.
(a)Separation Agreement and Release of Claims.  The Executive’s receipt of any severance payments or benefits upon the Executive’s Qualifying Termination under Section 3 is subject to the Executive signing and not revoking the Company’s then-standard separation agreement and release of claims (which may include an agreement not to disparage any member of the Company Group, an agreement to assist in any litigation matters, and other standard terms and conditions) (the “Release” and that requirement, the “Release Requirement”), which must become effective and irrevocable no later than the 60th day following the Executive’s Qualifying Termination (the “Release Deadline”).  If the Release does not become effective and irrevocable by the Release Deadline, the Executive will forfeit any right to severance payments or benefits under Section 3.
(b)Payment Timing.  Any lump sum Salary severance or additional payments under Sections 3(a)(i) and 3(a)(ii) will be provided on the first regularly scheduled payroll date of the Company following the date the Release becomes effective and irrevocable (the “Severance Start Date”), subject to any delay required by Section 5(d) below.  Any taxable installments of any COBRA-related severance benefits that otherwise would have been made to the Executive on or 
3

before the Severance Start Date will be paid on the Severance Start Date, and any remaining installments thereafter will be provided as specified in the Agreement. 
(c)Return of Company Property.  The Executive’s receipt of any severance payments or benefits upon the Executive’s Qualifying Termination under Section 3 is subject to the Executive returning all documents and other property provided to the Executive by any member of the Company Group (with the exception of a copy of the Company employee handbook and personnel documents specifically relating to the Executive), developed or obtained by the Executive in connection with his or her employment with the Company Group, or otherwise belonging to the Company Group.  
(d)Section 409A.  The Company intends that all payments and benefits provided under this Agreement or otherwise are exempt from, or comply with, the requirements of Section 409A of the Code and any formal guidance promulgated under Section 409A of the Code (collectively, “Section 409A”) so that none of the payments or benefits will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms in this Agreement will be interpreted in accordance with this intent.  No payment or benefits to be paid to the Executive, if any, under this Agreement or otherwise, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (together, the “Deferred Payments”) will be paid or otherwise provided until the Executive has a “separation from service” within the meaning of Section 409A.  If, at the time of the Executive’s termination of employment, the Executive is a “specified employee” within the meaning of Section 409A, then the payment of the Deferred Payments will be delayed to the extent necessary to avoid the imposition of the additional tax imposed under Section 409A, which generally means that the Executive will receive payment on the first payroll date that occurs on or after the date that is 6 months and 1 day following the Executive’s termination of employment.  To the extent necessary to comply with Section 409A, references to the termination of Executive’s employment or similar terms will be considered references to the Executive’s separation from service within the meaning of Section 409A.  The Company reserves the right to amend this Agreement as it considers necessary or advisable, in its sole discretion and without the consent of the Executive or any other individual, to comply with any provision required to avoid the imposition of the additional tax imposed under Section 409A or to otherwise avoid income recognition under Section 409A prior to the actual payment of any benefits or imposition of any additional tax.  Each payment, installment, and benefit payable under this Agreement is intended to constitute a separate payment for purposes of U.S. Treasury Regulation Section 1.409A-2(b)(2).  In no event will any member of the Company Group have any responsibility, liability or obligation to reimburse, indemnify, or hold harmless the Executive for any taxes, penalties and interest that may be imposed, or other costs that may be incurred, as a result of Section 409A. 
(e)Resignation of Officer and Director Positions.  The Executive’s receipt of any severance payments or benefits upon the Executive’s Qualifying Termination under Section 3 is subject to the Executive’s compliance with the requirements of Section 10.
6.Limitation on Payments.  
(a)Reduction of Severance Benefits.  If any payment or benefit that the Executive would receive from any Company Group member or any other party whether in connection with the provisions in this Agreement or otherwise (the “Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this sentence, be subject 
4

to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Payment will be equal to the Best Results Amount.  The “Best Results Amount” will be either (x) the full amount of the Payment or (y) a lesser amount that would result in no portion of the Payment being subject to the Excise Tax, whichever of those amounts, taking into account the applicable federal, state and local employment taxes, income taxes and the Excise Tax, results in the Executive’s receipt, on an after-tax basis, of the greater amount.  If a reduction in payments or benefits constituting parachute payments is necessary so that the Payment equals the Best Results Amount, reduction will occur in the following order: (A) reduction of cash payments in reverse chronological order (that is, the cash payment owed on the latest date following the occurrence of the event triggering the excise tax will be the first cash payment to be reduced); (B) cancellation of equity awards that were granted “contingent on a change in ownership or control” within the meaning of Section 280G of the Code in the reverse order of date of grant of the awards (that is, the most recently granted equity awards will be cancelled first); (C) reduction of the accelerated vesting of equity awards in the reverse order of date of grant of the awards (that is, the vesting of the most recently granted equity awards will be cancelled first); and  (D) reduction of employee benefits in reverse chronological order (that is, the benefit owed on the latest date following the occurrence of the event triggering the excise tax will be the first benefit to be reduced).  In no event will the Executive have any discretion with respect to the ordering of Payment reductions.  The Executive will be solely responsible for the payment of all personal tax liability that is incurred as a result of the payments and benefits received under this Agreement, and the Company Group will have no responsibility, liability or obligation to reimburse, indemnify, or hold harmless the Executive for any of those payments of personal tax liability.
(b)Determination of Excise Tax Liability.  Unless the Company and the Executive otherwise agree in writing, the Company will select a professional services firm (the “Firm”) to make all determinations required under this Section 6, which determinations will be conclusive and binding upon the Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 6, the Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and the Executive will furnish to the Firm such information and documents as the Firm reasonably may request in order to make determinations under this Section 6.  The Company will bear the costs and make all payments for the Firm’s services in connection with any calculations contemplated by this Section 6.  The Company will have no liability to the Executive for the determinations of the Firm.
7.Definitions.  The following terms referred to in this Agreement will have the following meanings:
(a)“Board” means the Board of Managers of Vacasa Holdings LLC.
(b)“Cause” means the occurrence of any of the following: (a) the Executive’s engaging in illegal or gross misconduct that is injurious to the Company (or its successor); (b) the Executive being convicted of, or the Executive’s plea of no contest to, a felony involving moral turpitude; (c) the Executive’s engaging in fraud, misappropriation, embezzlement or other dishonesty with respect to the Company (or its successor or affiliate, as applicable); or (d) the Executive’s willful and material breach of any of the Executive’s obligations under any written agreement with the Company (or its successor or affiliate, as applicable).  Any termination for “Cause” will require Board approval, and the Executive will be given the opportunity to appear in person before the entire Board in order to explain the Executive’s position on the allegations or claims that constitute “Cause”.  The Board (excluding the Executive if the Executive is at such time a member of the 
5

Board) shall make all determinations relating to termination, including without limitation any determination regarding Cause.
(c)“Change in Control” means the occurrence of a “Deemed Liquidation Event”, as such term is defined in the LLC Agreement.
Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.
Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
(d)“Change in Control Period” means the period beginning three (3) months prior to a Change in Control and ending twelve (12) months following a Change in Control. 
(e)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. 
(f)“Code” means the Internal Revenue Code of 1986, as amended.
(g)“Company Group” means the Company and its subsidiaries.
(h)“Disability” means a total and permanent disability as defined in Section 22(e)(3) of the Code.
(i)“Good Reason” means the Executive’s resignation from employment with the Company Group within ninety (90) days following the cure period (discussed below) of the Company (or its successor or affiliate, as applicable) in connection with any of the following events without the Executive’s written consent:  (a) a material reduction in the Executive’s annual base salary; (b) a material reduction in the Executive’s authority, duties or responsibilities (provided that such material reduction will not be deemed to occur if the Executive is provided with a comparable position (i.e., a position of equal or greater organizational level, authority, duties and responsibilities), and provided further, that a reduction in authority, duties or responsibilities solely by virtue of the Company being acquired and made part of a larger entity will not constitute a material reduction under this clause (b)); (c) a change by more than sixty (60) miles in the geographic location of the Executive’s principal place of work.  The Executive will not resign for Good Reason without first providing the Company (or its successor or affiliate, as applicable) with written notice within ninety (90) days following the initial existence of the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty (30) days following the date of such notice, during which such grounds have not been cured.
(j)“Confidentiality Agreement” means the Agreement Regarding Confidential Information and Invention Assignment executed by the Company and Executive.
6

(k)“Qualifying Termination” means a termination of the Executive’s employment either (i) by a Company Group member without Cause (excluding by reason of the Executive’s death or Disability) or (ii) by the Executive for Good Reason, in either case, during the Change in Control Period (a “Qualifying CIC Termination”) or outside of the Change in Control Period.  
(l)“Qualifying Pre-CIC Termination” means a Qualifying CIC Termination that occurs prior to the date of the Change in Control.
(m)“Salary” means the Executive’s annual base salary as in effect immediately prior to the Executive’s Qualifying Termination (or if the termination is due to a resignation for Good Reason based on a material reduction in base salary, then the Executive’s annual base salary in effect immediately prior to the reduction) or, if the Executive’s Qualifying Termination is a Qualifying CIC Termination and the amount is greater, at the level in effect immediately prior to the Change in Control.  
8.Successors.  This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors, and legal representatives of the Executive upon the Executive’s death, and (b) any successor of the Company.  Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes.  For this purpose, “successor” means any person, firm, corporation, or other business entity which at any time, whether by purchase, merger, or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.  None of the rights of the Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.  Any other attempted assignment, transfer, conveyance, or other disposition of the Executive’s right to compensation or other benefits will be null and void.
9.Notice. 
(a)General.  All notices and other communications required or permitted under this Agreement shall be in writing and will be effectively given (i) upon actual delivery to the party to be notified, (ii) upon transmission by email, (iii) 24 hours after confirmed facsimile transmission, (iv) 1 business day after deposit with a recognized overnight courier, or (v) 3 business days after deposit with the U.S. Postal Service by first class certified or registered mail, return receipt requested, postage prepaid, addressed (A) if to the Executive, at the address the Executive shall have most recently furnished to the Company in writing, (B) if to the Company, at the following address:
Vacasa LLC
850 NW 13th Avenue
Portland, OR 97209
Attention: Chief Legal Officer
(b)Notice of Termination.  Any termination by a Company Group member for Cause will be communicated by a notice of termination to the Executive, and any termination by the Executive for Good Reason will be communicated by a notice of termination to the Company, in each case given in accordance with Section 9(a) of this Agreement.  The notice will indicate the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and will specify the termination date (which will be not more than thirty (30) days after the giving of 
7

the notice or, in the case of a Qualifying Termination relating to a Good Reason resignation by the Executive, ninety (90) days after the end of any applicable cure period).  
10.Resignation.  The termination of the Executive’s employment for any reason will also constitute, without any further required action by the Executive, the Executive’s voluntary resignation from all officer and/or director positions held at any member of the Company Group, and at the Board’s request, the Executive will execute any documents reasonably necessary to reflect the resignations.
11.Miscellaneous Provisions.
(a)No Duty to Mitigate.  The Executive will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any payment be reduced by any earnings that the Executive may receive from any other source except as specified in Section 3(e).
(b)Waiver; Amendment.  With the exception of any modifications pursuant to Section 5(d), no provision of this Agreement will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by an authorized officer of the Company (other than the Executive) and by the Executive.  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party will be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(c)Headings.  All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.
(d)Entire Agreement.  This Agreement constitutes the entire agreement of the parties and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter of this Agreement, including, for the avoidance of doubt, any other employment letter or agreement, severance policy or program, or Award agreement.  
(e)Choice of Law.  This Agreement will be governed by the laws of the State of Colorado without regard to Colorado’s conflicts of law rules that may result in the application of the laws of any jurisdiction other than Colorado.  To the extent that any lawsuit is permitted under this Agreement, The Executive hereby expressly consents to the personal and exclusive jurisdiction and venue of the state and federal courts located in Colorado for any lawsuit filed against the Executive by the Company.
(f)Arbitration.  The Executive and the Company agree that if any dispute, controversy or claim should arise between the Executive and the Company (including claims against its employees, officers, board members, equity holders, agents, successors and assigns) relating or pertaining to or arising out of this Agreement, the dispute will be submitted to binding arbitration before a neutral arbitrator conducted in Denver, Colorado, in accordance with the dispute resolution agreement signed by the Executive and Company. This means that disputes will be decided by an arbitrator rather than a court or jury, and that both the Executive and the Company waive their respective rights to a court or jury trial. The Executive understands that the arbitrator’s decision will be final and exclusive and cannot be appealed. This subsection 11(f) shall survive termination of this Agreement.
8

(g)Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in full force and effect.
(h)Withholding.  All payments and benefits under this Agreement will be paid less applicable withholding taxes.  The Company is authorized to withhold from any payments or benefits all federal, state, local, and/or foreign taxes required to be withheld from the payments or benefits and make any other required payroll deductions.  No member of the Company Group will pay the Executive’s taxes arising from or relating to any payments or benefits under this Agreement.
(i)Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
[Signature page follows.]

9

By its signature below, each of the parties signifies its acceptance of the terms of this Agreement, in the case of the Company by its duly authorized officer.

COMPANY        VACASA LLC
            By:     /s/ Matt Roberts    
Name: _Matt Roberts ______________________
Title:  CEO    
Date:  26 - Mar - 2021    

EXECUTIVE        /s/ Jamie Cohen        
Jamie Cohen
Date:  04 - Mar - 2021    

[Signature page to Change in Control and Severance Agreement]
10Document

Exhibit 10.20

April 6, 2021                            

Craig Smith

Employment Offer – Chief Operating Officer

Dear Craig,

Congratulations! On behalf of Vacasa LLC (the “Company”), I would like to offer you the position of Chief Operating Officer of Vacasa LLC reporting to the Chief Executive Officer (the “CEO”). This letter outlines the terms of our offer of employment with the Company and summarizes compensation and other benefits you will receive if this offer is accepted in a timely manner and all of the below conditions are met. 

Title and Salary:  By signing below, the Company offers to employ you as Chief Operating Officer of Vacasa LLC, with a salary of $500,000 per annum (“Base Salary”), less applicable deductions and withholdings. You will be paid on a once-every-two-weeks basis for the percentage of salary accrued during such period.  

Bonus: You will be eligible for an annual bonus of up to 50% of your Base Salary, subject to meeting certain performance criteria as will be set by the CEO of Vacasa LLC and the Board of Managers (the “Board”) of Vacasa Holdings LLC (“Holdco”) or a committee of the Board in their discretion.  You will be required to remain employed with the Company through the date any such bonus is paid in order to earn the bonus and any bonus for calendar year 2021 will be pro-rated for the portion of the year you are actually employed by the Company. 

Location of Position: Your position will be located in your home office in Denver, Colorado. The Company understands that you will remain a resident of Colorado and travel periodically to Portland, OR and Boise, ID to perform your duties and responsibilities as Chief Operating Officer.  The Company will pay or otherwise reimburse you for reasonable costs for flights to and from Denver, Colorado to and from Portland or Boise and will provide Company housing accommodations and reimburse living expenses for the time spent in Portland or Boise in the performance of your duties and responsibilities hereunder.  All reimbursement requests made pursuant to this section are subject to the Company’s reimbursement policy, including appropriate substantiation for any such requests.   

Benefits:  The Company currently offers the following 2021 benefits: i) medical insurance with Regence Blue Shield or Kaiser; ii) dental insurance (including orthodontia); iii) vision insurance; iv) eligibility to participate in the Company 401(k) plan; and v) standard holiday pay.  You will also be eligible to take time off in accordance with the Company’s non-accrued vacation policy, and for paid sick leave in accordance with Company policy and applicable law.  You will be eligible to receive these Company benefits at the beginning of the first full month following your first day of work (contingent on you averaging 30+ hours worked per week), or as otherwise required by law.  All benefits are subject to change and the full terms and conditions applicable to your eligibility for benefits are set forth in the benefit plan documents or the Employee Handbook.  If this description of benefits differs from the terms and conditions set forth in the plan documents or the Handbook, the plan documents or Handbook will control. 

At-Will Employment:  The Company is an at-will employer.  This means that you may terminate your employment with the Company at any time and for any reason whatsoever, with or without cause or advance notice.  Likewise, the Company may terminate your employment at any time and for any reason whatsoever, with or without cause or advance notice.  The at-will employment relationship cannot be changed except in a writing signed by the CEO of the Company. Upon termination, you will be paid any accrued but unpaid bonus amounts for which you are eligible.

Profits Interest: The Company will recommend to the Board that it cause you to be granted a profits interest in Vacasa Employee Holdings LLC (“Management HoldCo”) for 5,000,000 Employee Equity Units (as defined in the Management HoldCo’s Limited Liability Company Agreement (the “Operating Agreement”)) entitling you to receive a share in future Company profits and appreciation in excess of a grant-date participation threshold value to be established by the Board (the “Profits Interest”). The participation threshold is expected to be approximately $2,000,000,000.  The Profits Interest will vest as to 25% of the interest on the first anniversary of the date you commence employment with the Company under this letter agreement and as to 1/48th of the total original amount of the Profits Interest monthly thereafter, subject to your continuing status as a service provider of the Company or any parent or subsidiary through each vesting date.  The Profits Interest will be subject to the terms and conditions of the Operating Agreement and a profits interest agreement to be entered into between you and Management HoldCo. You will receive a profits interest award agreement setting forth the specific details of the Profits Interest award. 

Potential Termination Payments and Benefits: The Company will provide you with a Change of Control and Retention Agreement (the “COCR Agreement”) setting forth the terms relating to certain termination benefits. Specifically, in the event your employment is terminated other than for cause, death, or disability, or you resign from such employment for good reason (with such terms to be defined in the COCR Agreement) (any such termination of employment, an “Involuntary Termination”), you will become entitled to receive (i) a lump sum payment equal to eight (8) months’ of your then-current Base Salary, less applicable tax withholding and (ii) Company reimbursement for COBRA premiums for up to eight (8) months to the extent you elect such coverage. 

In addition, to the extent you incur an Involuntary Termination within three (3) months prior to or twelve (12) months following a change of control transaction of the Company you will be entitled to the following accelerated vesting: (1) if such termination occurs prior to the anniversary of your start date, you will be entitled to acceleration of the first 12 months’ portion of your award (i.e. the cliff portion of the award) and (2) if such termination occurs on or after the first anniversary of your start date, your outstanding unvested equity at time of termination will vest as to 100% of the unvested portion of such awards.  

If you incur an Involuntary Termination within the first year of your employment but such Involuntary Termination does not qualify for the vesting acceleration described in the preceding sentence, you will be entitled to accelerated vesting (at 1/48 the total award amount per month) at the greater of (i) eight (8) months or (ii) the number of months that have elapsed since your employment start date at the time of the Involuntary Termination. 

Any of the foregoing severance payments and benefits will be subject, among other things, to signing and not revoking a separation agreement and release of claims in the form provided by the Company.  The foregoing will be documented and memorialized and subject in all respects to the COCR Agreement to be executed between you and the Company.

Section 409A.  The parties agree that this letter agreement will be interpreted to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and guidance promulgated thereunder to the extent applicable (collectively “Code Section 409A”), and all provisions of this letter agreement and other documents and arrangements referenced herein will be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.  In no event whatsoever will any member of the Company group or any of its directors, officers, agents, attorneys, employees, executives, shareholders, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns of such company be liable for any additional tax, interest or penalties that may be imposed on you as a result of the application Code Section 409A or any damages for failing to comply with Code Section 409A.

With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits will not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year will not affect the expenses eligible for reimbursement, or in-kind benefits, to be provided in any other taxable year, and (iii) such payments shall be made on or before the last day of your taxable year following the taxable year in which the expense occurred.

Background Check and Ability to Work:  This offer is contingent upon your successful completion of a background screen and reference check and your ability to provide the necessary original documents needed to satisfactorily complete the Form I-9 of the US Citizenship & Immigration Service within three days of your start date of employment.  No employment shall commence until you have provided the aforementioned documents.  Once you sign and return this letter, a Company representative will contact you for additional information needed to commence the background check and screening.

Company Policies and Conflicts:  As a Company employee, you will be expected to abide by the Company’s rules and standards. We also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed. It is the Company’s understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case. Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. Similarly, you agree not to bring any third party confidential information to the Company, including that of your former employer, and that in performing your duties for the Company you will not in any way utilize any such information.

Agreement Regarding Confidential Information and Invention Assignment:  It is a condition of this offer that you must sign an Agreement Regarding Confidential Information and Invention Assignment (“PIIA”) that contains requirements for the protection of the Company’s business.  A copy of this agreement is enclosed for your review and execution.

Dispute Resolution Agreement:  The Company has adopted a Dispute Resolution Agreement (“DR Agreement”), which is enclosed, under which disputes that might arise would be resolved through arbitration.  Please review the DR Agreement.  If you do not wish to be bound by the dispute resolution procedures outlined in the Agreement, you must follow the instructions in paragraph 2 of the DR Agreement. 

Expiration:  To accept the Company’s offer, please sign and date this letter in the space provided below. If you accept our offer, your first day of employment will be as mutually agreed but in no event later than April 15, 2021. This letter agreement, along with the PIIA, DR Agreement and agreements relating to the Profits Interest, set forth the terms of your employment with the Company and supersede any prior representations or agreements including, but not limited to, any representations made during your recruitment, interviews or pre-employment negotiations, whether written or oral. This letter may not be modified or amended except by a written agreement signed by the Chief Executive Officer of the Company and you. This offer of employment will terminate if it is not accepted, signed and returned by April 8, 2021.

We look forward to you joining the Vacasa Team!

Sincerely, 

   /s/ Matt Roberts

Matt Roberts
CEO
Vacasa LLC

/s/ Craig Smith                                    06 - Apr - 2021
______________________________________________________            _________________________
Signature – Craig Smith                            Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]