Referral Equity Program FAQs

General program information

• What is the Referral Equity Program?

  Pacaso’s Referral Equity Program (REP) is an innovative incentive program that rewards Pacaso owners and real estate agents who are residents of the USA with equity in the form of restricted stock units (RSUs) for closed buyer referrals.

• Is there a cap on the equity I can earn?

  No. The more buyers referred, the more equity you can earn.

• Will I earn more equity if a buyer purchases more ownership?

  No, the 500 RSU bonus is per buyer, whether they purchase ⅛, ¼ or ½ ownership.

• How will the stock be priced?

  Because Pacaso is currently a private company, the value of the equity is a moving target. Our 409A valuation puts Pacaso’s common stock at USD $0.86/share. This is a tax valuation. When we sold preferred stock at our $1B valuation in March 2021, that deal was done at a per-share price of $4.15, which is a helpful indicator of how the investment community is valuing the company. Program participants interested in estimating the value of their RSUs can use this preferred stock price as a reference point, but until we are public, the ultimate value remains hypothetical.

• How is the equity being granted?

  Equity is granted in the form of restricted stock units (RSUs). The 500 shares of common stock underlying the RSUs will vest and be paid after the company is public (or in connection with a sale of the company).

• What markets are you in?

  Pacaso operates in top second home destinations across the USA and in Europe, with plans to expand globally. You can find our active markets here.

• How do I track my equity bonuses?

  You will receive a confirmation email with an ID number for each equity grant. Confirmations will be sent between 30-60 days after the referred sale has closed. Once Pacaso goes public, we will reach out to let you know the vesting period has begun. If you have questions about the status of your rewards, you may also contact equity@pacaso.com.

• What will my shares be worth when the company goes public?

  We can’t speculate on what the value of Pacaso’s common stock will be at that moment, or the price at which it will trade after that point. But our hope, of course, is that our common stock consistently appreciates in value so that all Pacaso stockholders – including you – benefit.

• What if Pacaso never goes public?

  If Pacaso is not public or has not been sold by the 7th anniversary of the date the RSU is awarded, then the RSUs will be forfeited and will not be paid.

• What is a restricted stock unit?

  Restricted stock units (RSUs) are a form of stock-based compensation. They are restricted during a vesting period, during which time they cannot be sold. Once vested, the RSUs are just like any other shares of company stock. RSUs will always have some value based on the underlying shares. For tax purposes, the entire value of vested RSUs must be included as ordinary income in the year of vesting.

• Why is the company granting RSUs instead of equity options?

  Pacaso may award RSUs at no purchase price, whereas options require a purchase price (sometimes called an exercise price or a strike price). Because RSUs are taxable when they vest, we have structured this program so that RSUs won’t vest until Pacaso is public (providing you with the opportunity to sell some of the underlying common stock to cover the tax liability).

• What are the tax implications?

  After RSUs are vested and paid, the grantee is taxed on the value of the shares at the time they are awarded. We have structured this program in such a way to minimize the risk that grantees will be taxed on illiquid stock. Grantees are encouraged to communicate with their tax advisor regarding the tax implications of the RSUs.

• Can Pacaso terminate or modify the REP?

  Yes, the company retains the right to terminate or modify the REP at any time, with or without notice. However, any RSUs awarded prior to the date of termination of the REP will remain outstanding in accordance with their terms. The company will not grant RSUs in jurisdictions where it is legally prohibited from doing so.

• Where can I get more information about the Referral Equity Program?

  Visit www.pacaso.com/owner-equity for more information about our referral equity program and other referral benefits for owners and their friends. We also encourage you and all participants to read the Offering Memorandum you will receive along with your award agreement regarding the company and the RSUs.