Document:

EX-10.2

 Exhibit 10.2 

CONFIDENTIAL TREATMENT REQUESTED 
 CONFIDENTIAL PORTIONS OF
THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION THAT WAS OMITTED IN THE EDGAR VERSION HAS BEEN NOTED IN THIS DOCUMENT WITH A PLACEHOLDER IDENTIFIED BY THE MARK
“[***]”. 
  

																			
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	 	 	 	        PAGE        OF        PAGES
	 	  	 	  
 1
	  	  
 2

	  
 2. AMENDMENT/MODIFICATION
NO.
 0007
  
	  	  
  

	  
 3. EFFECTIVE DATE

   See Block 16C
	  
  

 
	  	  
 4. REQUISITION/PURCHASE
REQ. NO.
	 	  

  5. PROJECT NO (If applicable)

	6. ISSUED BY	 	CODE    	  	  
  
	  

HHS/OS/ASPR/BARDA
	  
  
	  	  
 7. ADMINISTERED BY (If other than Item 6) CODE
	 		 	ASPR-BARDA02
	 US DEPT OF HEALTH & HUMAN SERVICES

ASST SEC OF PREPAREDNESS & RESPONSE
 ACQ MANAGEMENT,
CONTRACTS, & GRANTS
 O’NEILL HOUSE OFFICE BUILDING

Washington DC 20515
  
	  

 

 

 

 
 
	  	 US DEPT OF HEALTH & HUMAN SERVICES

ASST SEC OF PREPAREDNESS & RESPONSE
 ACQ MANAGEMENT, CONTRACTS,
& GRANTS
 O’NEILL HOUSE OFFICE BUILDING
 Washington DC
20515
  

	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP code)

 
 PFENEX, INC 1358378

PFENEX, INC.       10790 ROSELLE ST

10790 ROSELLE ST
 SAN DIEGO CA 921211508

 
	  
 

 

 

 

 
 
	  	  

(x) 
	  	  
 9A. AMENDMENT OF
SOLICITATION NO.
	  	 
	  	 	  	 9B. DATED (SEE ITEM 11)

 
	  	 
	  	     

x 
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO.

 
 HHSO100201500011C

 
	  	 
	  		 		 		 		  	
		 		  				  	 10B. DATED (SEE ITEM 13)

08/14/2015
	  	
	  

CODE 1358378
	 	  

  FACILITY CODE
	 

 
	  	 	  	 

  

											
	 11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

 

	  
 ☐ The above
numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers         ☐     is extended,
        ☐     is not extended.
  

	 Offers must acknowledge receipt of this amendment prior to the hour and date specified in the
solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning              copies of the amendment; (b) By acknowledging
receipt of this amendment on each copy of the offer submitted; or (c) By
 separate letter or telegram which includes a reference to the solicitation and amendment
numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT
 THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION
OF YOUR OFFER. If by
 virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram
or letter makes
 reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

													
	 12. ACCOUNTING AND APPROPRIATION DATA (if required)

 
 See Schedule

	  

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

 
  

													
	  
   CHECK ONE
	  	 A. THIS CHANGE ORDER IS ISSUED
PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

	 
		 
	 	  	 B. THE ABOVE NUMBERED CONTRACT/ORDER IS
MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

		 
	x	  	 C.   THIS SUPPLEMENTAL AGREEMENT IS
ENTERED INTO PURSUANT TO AUTHORITY OF:
 52.243-5 Alternate 1 Changes-Cost-reimbursement and Mutual agreement of the parties

	 	  	 D.   OTHER (Specify type of
modification and authority)
  

													
		
	 E. IMPORTANT: Contractor                     ☐     is
not                 ☒     is required to sign this document and return
    1   copies to the issuing office.
  
	  	 

													
	14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)
	  
 Tax ID
Number:27-1356759
 DUNS Number: 013603710
 The purpose of this
modification is to extend the period of performance of contract and CLIN 0001, Phase 1A Study and Continuation of Stability Studies and CLIN 006, [***] at no additional cost to the government.

 
 -

Discount Terms: NET 30P
 Delivery Location Code: HHS

HHS
 200 Independence Avenue, SW

Continued ...
  

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and
effect.

													
		 
	 15A. NAME AND TITLE OF SIGNER (Type or print)

SUSAN A. KNUDSON, CFO
	  	 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

WENDELL CONYERS

		 	 	 
	 15B. CONTRACTOR/OFFEROR
  

/s/ Susan A.
Knudson                                

                (Signature of person authorized to sign)
	  	15C. DATE SIGNED        
 
 09/13/18
	  	 16B. UNITED STATES OF AMERICA
  

/s/ Wendell
Conyers                                        
        
                 (Signature of
Contracting Officer)
	  	16C. DATE SIGNED          

9/14/18

  

			
	NSN 7540-01-152-8070	  	STANDARD FORM 30 (REV. 10-83)
	Previous edition unusable	  	Prescribed by GSA
		  	FAR (48 CFR) 53.243

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 

							
	
            CONTINUATION SHEET

 
	  	  

REFERENCE NO. OF DOCUMENT BEING CONTINUED

HHSO100201500011C/0007
	 	  
 PAGE 
	 	  
 OF

	 	2	 	2

													
	     NAME OF OFFEROR OR CONTRACTOR

    PFENEX, INC 1358378

	  
 ITEM
NO.
 (A)
  
	  	  

SUPPLIES/SERVICES
 (B)

 
	  	  

QUANTITY 
 (C)

 
	  	  

UNIT
 (D)

 
	  	  

UNIT PRICE  
 (E)

 
	 	  

AMOUNT
 (F)

 

	 	  	 Washington DC 20201 US
  

FOB: Destination
 Period of Performance: 08/14/2015 to
08/09/2020
  
 Change Item 1 to read as follows (amount shown is the obligated
amount):
	  	 	  		  	 	 	
	 		 		 	
	1	  	 Base Year – PHASE 1A STUDY AND CONTINUATION OF STABILITY STUDIES

Obligated Amount: $0.00
	  	 	  		  	 	 	0.00
	 		 		 	
	 	  	 Accounting Info:
 2015.1992015.25103 Appr.
Yr.: 2015 CAN: 1992015
 Object Class: 25103
 Funded:
$0.00
	  	 	  		  	 	 	
	 		 		 	
	 	  	Change Item 6 to read as follows (amount shown is the obligated amount):	  	 	  		  	 	 	
	 		 		 	
	6	  	 Option 5 - [***]
 Obligated Amount:
$0.00
	  	 	  		  	 	 	0.00
	 		 		 	
	 	  	 Accounting Info:
 2017.1992017.25103 Appr.
Yr.: 2017 CAN: 1992017
 Object Class: 25103
 Funded:
$0.00
	  	 	  		  	 	 	
	 	  	     

    
     
	  	 	  		  	 	 	
	 	  	     

    
     
	  	 	  		  	 	 	
	 	  	     

    
     

    
     
	  	 	  		  	 	 	
	 	  	  

                
	  	    	  	 	  	 	 	 

  

			
	NSN 7540-01-152-8067	  	 OPTIONAL FORM 336 (4-86)
 Sponsored by GSA

FAR (48 CFR) 53.110

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 

					
	 Contract No.
HHSO100201500011C
 Modification #07
  
	  	Continuation Sheet Block 14	  	Page 3 of 4

 SUMMARY OF CHANGES 
 Beginning with the effective date
of this modification, the Government and Contractor mutually agree as follows: 
  

	 	1.	 The purpose of this modification is to (1) extend the period of performance of the contract and 2) extend the period of performance
of CLIN 0001 and 0006. This is a ‘No Cost Extension’ strictly to allow Pfenex time to complete the planned scope of work and finalizes all reports. 

 

	 	2.	 Delete and replace ARTICLE B.2. BASE PERIOD due to the extension of CLIN 0001 period of performance: 

 

													
	CLIN  	  	Estimated
Period of
Performance	  	Supplies/Services	  	Total

Estimated 
Cost
	  	Fixed Fee	  	Total
Estimated
Cost Plus
Fixed Fee	  	Awarded
	0001  	  	 08/13/2015-    

09/30/2019    
	  	
PHASE 1A STUDY
AND
CONTINUATION
OF STABILITY
STUDIES

 
	  	$14,992,075  	  	$899,525  	  	$15,891,600  	  	14 Aug 2015  

  

	 	a.	 Extend the period of performance (PoP) for CLIN 0001:From: August 14, 2015 thru September 30,
2018To: August 14, 2015 thru September 30, 2019 

  

	 	b.	 Reason for extension: CLIN0001: A $675K reservation fee was approved in Aug. 2017 for a GMP suite. Following an IPR
meeting in Nov 2017, this GMP suite could not be utilized during the planned time, but Pfenex has been able to negotiate repurposing the majority of the fee for method optimization activities covered under CLIN 0001. Method qualification and
verification activities will now be completed in 2Q CY2019. 

  

	 	3.	 Delete and replace ARTICLE 8.3. OPTION PRICES due to the extension of CLIN 0006 Option 5 period of performance: 

 

															
	CLIN	  	Opt	  	 Estimated
Period of

Parf.
	  	Supplies/
Services	  	Total Est
Cost	  	Fixed Fee	  	 Total
Est. Cost

Plus
Fixed Fee
	  	 Exercised

Yes/No

	
0002
	  	1	  	 08/12/2015-

11/03/2016
	  	[***]	  	$2,480,823	  	$148,849	  	$2,629,672	  	No
	
0003
	  	2	  	 11/24/2016-

02/24/2019
	  	[***]	  	$12,966,402	  	$777,984	  	$13,744,386	  	No
	
0004
	  	3	  	 05/27/2018-

08/02/2020
	  	[***]	  	$44,230,173	  	$2,653,810	  	$46,883,983	  	No
	
0005
	  	4	  	 12/22/2016-

12/31/2019
	  	[***]	  	$4,037,244	  	$137,984	  	$4,175,228	  	Yes

 [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 

															
	 0006
	  	5	  	 12/22/2016-

12/30/2019
	  	[***]	  	$2,304,571	  	$138,274	  	$2,442,845	  	Yes
	
0007
	  	6	  	 01/09/2016-

08/05/2020
	  	[***]	  	$14,107,610	  	$846,457	  	$14,954,067	  	No
	
0008
	  	7	  	 11/24/2016-

08/09/2020
	  	[***]	  	$41,202,354	  	$2,472,141	  	$43,674,496	  	No
	
0009
	  	8	  	 12/24/2016-

05/13/2017
	  	[***]	  	$750,622	  	$45,037	  	$795,659	  	No

  

	 	a.	 Extend the contract period of performance (PoP) for CLIN 0006: 

	 	  	 From: December 22, 2016 thru September 30, 2018 

	 	  	 To: December 22, 2016 thru December 30, 2019 

 

	 	b.	 Reason for extension: CLIN0006: [***]. 

 

	 	4.	 Funding Total Summary: the total funded amount on the contract has not changed from $22,509,673.23. 

 

	 	5.	 Contract Total Summary (if all options are exercise): the total contract value has not changed from $145,191,936. 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions.Exhibit

 

Exhibit 10.1

        
Sept. 10, 2018
Dear Linda:
This letter (the "Agreement") confirms the agreement between you and Etsy, Inc. (the "Company") regarding the transition of your duties and responsibilities and resignation.
1.    Last Date of Employment.  Your last day of employment with the Company will be January 2, 2019 or such earlier date as your employment ends under Section 4 of this Agreement (the "Effective Date").  As of the Effective Date, you will and hereby resign from the office of Chief Operating Officer ("COO") of the Company (and from any and all other offices you hold with Company affiliates). From the date of this Agreement through the Effective Date (such period being referred to as the "Retention Period"), you will continue to be employed by the Company in accordance with Section 2, below.

2.    Retention Period.  You agree that, during the Retention Period, you will continue to perform your duties and responsibilities in a professional manner; perform such duties and responsibilities as may be reasonably assigned to you and consistent with your position as the COO by the Company’s Chief Executive Officer ("CEO") and/or Board of Directors ("Board"); and cooperate in the effort to effect an orderly, smooth, and efficient transition of your duties and responsibilities to such individual(s) as the Company may direct.  

3.    Retention Benefits.  Subject to Sections 4 and 8, below, as an inducement for you to continue your employment with the Company during the Retention Period; in exchange for your signing this Agreement and not revoking your acceptance of this Agreement; your compliance with your obligations under this Agreement (including Section 2, above); and your signing (no earlier than the Effective Date) and not revoking the Supplemental Release, a copy of which is attached as Exhibit A to this Agreement (the "Supplemental Release"), the Company will provide you with the following benefits: 

		
	(a)
	Continuation of your base salary at an annualized rate of $350,000 (but not your employment) for a period of six (6) months after the Effective Date, which base salary shall be paid to you in accordance with the Company’s normal payroll practices, commencing within thirty (30) days following the Effective Date, provided that the initial payment will include a catch-up payment to cover the period between the Effective Date and the date of such first payment;

		
	(b)
	Reimbursement of your COBRA premiums for the health coverage you were covered under the Company’s plans immediately prior to the Effective Date for 

 

the six (6) month period after the Effective Date, which amounts shall be paid to you on the first Company payroll date of each month that immediately follows the date on which such monthly premium is due, commencing within thirty (30) days following the Effective Date, provided that the initial payment will include a catch-up payment to cover the period between the Effective Date and the date of such first payment;

		
	(c)
	An additional lump sum payment to you of $262,500, payable within 60 days of the Effective Date. 

		
	(d)
	Full (i.e., 100%) acceleration, on the Effective Date, of the stock options and restricted stock units ("RSUs") awarded to you on June 1, 2016, such that all such options will be fully vested and exercisable, and all RSUs will be fully vested, on and as of the Effective Date.

		
	(e)
	Full (i.e., 100%) acceleration, on the Effective Date, of the stock options and RSUs awarded to you on March 15, 2017, such that all such options will be fully vested and exercisable, and all RSUs will be fully vested, on and as of the Effective Date.

Except for your salary through the Effective Date, any accrued but unused vacation through the Effective Date, reimbursement of expenses you incur prior to the Effective Date, and your entitlement to benefits under any Company benefit, stock, equity, and long-term incentive plan which are vested, and any other payments or benefits required to be paid or provided by law, you agree that you will not be entitled to any additional compensation from the Company, including any salary, bonus or incentive compensation, leave, severance or separation pay, or other remuneration or benefits of any kind, other than as set forth in this Agreement or in a subsequent written agreement between you and the Company.

You agree that if you violate any of your obligations under this Agreement, you will no longer be entitled to receive any benefits under Sections 3(a) through (e), above.  

4.    Termination or Resignation Prior to January 2, 2019.  Notwithstanding anything else in this Agreement, the Company may terminate your employment and you may resign your employment at any time prior to January 2, 2019, in which case you will receive only the benefits described in this Section 4.  If you resign your employment without Good Reason (as defined below) or if the Company terminates your employment for Cause (as defined below) prior to January 2, 2019, you will receive only your base salary through the date of termination or resignation, any accrued, but unused vacation, any vested benefits under the Company’s benefit, stock, equity, and long-term incentive plans, reimbursement of duly-documented business expenses, and any other payments or benefits required to be paid or provided by law or Company policy ("Accrued Benefits").  If the Company terminates your employment without Cause or if you resign for Good Reason prior to January 2, 2019, you will receive the Accrued Benefits, together with the additional benefits set forth in Section 3(a) through (e), above, 

 

provided (i) (as to the latter) that you sign (no earlier than the Effective Date) and do not revoke your acceptance of the Supplemental Release and (ii) the base salary continuation and COBRA reimbursement periods described in Sections 3(a) and (b), above, will be extended so that you will have base salary continuation and COBRA reimbursement from the earlier termination date to June 30, 2019 (i.e., six months, plus the period between the earlier termination date and January 2, 2019).  

5.    For the purposes of this Agreement, "Cause" shall have the meaning set forth in the Etsy, Inc. Executive Severance Plan

6.    For the purposes of this Agreement, "Good Reason" shall mean that one of the following occurs without your written consent:  (a) a material diminution in your compensation (other than as contemplated in this Agreement); (b) the relocation of your principal place of employment to a location more than fifty (50) miles from its current location, or (c) a material breach of this Agreement; provided, that in order to terminate on account of Good Reason, you must provide the Company notice within thirty (30) days of the initial occurrence of the event constituting Good Reason and the Company will have a period of thirty (30) days to cure such event.  If not cured, you may terminate your employment within sixty (60) days following the end of the cure period.

7.    Equity Grants.  Your stock options and restricted stock units will vest through the Effective Date in accordance with the terms and conditions of the applicable equity plan(s) and award agreement(s) pursuant to which they were granted.  Subject to the acceleration described in Section 3(d) and 3(e) of this Agreement, above, any options and restricted stock units that are unvested as of the Effective Date will be forfeited in accordance with those plan(s) and agreement(s). The award agreement(s) between you and the Company evidencing your equity awards pursuant to Etsy, Inc. 2015 Equity Incentive Plan will remain in full force and effect and you agree to remain bound by them.  You also acknowledge and agree that you will remain bound by the terms of the Company’s Insider Trading Policy. 

8.    Release of All Claims.  In consideration for receiving the retention benefits described in Section 3, above, and to the fullest extent permitted by applicable law, you hereby waive, release and promise never to assert any claims or causes of action, whether or not now known, against the Company or its predecessors, successors or past or present subsidiaries, stockholders, directors, officers, employees, consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter, including (without limitation) any matter related to your employment with the Company or the termination of that employment, claims for attorneys’ fees or costs, claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract or breach of the covenant of good faith and fair dealing, claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the New York State Human Rights Law, the New York Labor Law, and the New York City Human Rights Law; claims under any and all other federal, state, and local statutes, regulations, and laws of any type; and claims for any compensation or benefits not specifically referenced in this Agreement, including claims under any Company incentive plan, bonus plan, or severance plan).  Execution of this 

 

Agreement does not bar (i) any claim that arises hereafter, including (without limitation) a claim for breach of this Agreement, (ii) any rights you may already have to be indemnified and/or advanced or reimbursed expenses pursuant to any corporate document of the Company or its affiliates or applicable law, including the Indemnification Agreement dated January 27, 2017, or your right to be covered under any applicable directors’ and officers’ liability insurance policies, (iii) any rights to the retention benefits set forth in this Agreement, and (iv) any rights to vested equity awards and any rights under any benefit plans of the Company under which you have a vested benefit and for which amounts are payable after the Effective Date.

9.    No Admission.  Nothing contained in this Agreement will constitute or be treated as an admission by you or the Company of liability, any wrongdoing or any violation of law.

10.    Other Agreements.  At all times in the future, you will remain bound by the Proprietary Information and Inventions Agreement (the "PIIA") with the Company you signed on April 6, 2016, a copy of which is attached as Exhibit B.  

In addition, you will remain eligible for certain benefits under the Etsy, Inc. Executive Severance Plan ("Severance Plan") in the event that the Company experiences a Change in Control (as defined in the Severance Plan), provided, however, that
(i)    the definition of "Qualifying CIC Termination" is hereby amended and shall mean (as applied to you) a termination of your employment under this Agreement entitling you to the benefits under Section 3 of this Agreement that occurs within (A) the three (3) months before a Change in Control or (B) after a Change in Control but prior to January 1, 2019; and    
(ii)    in the event you experience a Qualifying CIC Termination (as defined in the preceding sub-paragraph), you will receive the benefits described in Section 3 of this Agreement, except that any amounts payable to you under the Severance Plan will be offset by any amounts paid to you under Sections 3(a) and (b) of this Agreement, and any amounts payable to you under Sections 3(a) and (b) of this Agreement will be offset by any amounts paid to you under the Severance Plan.
In other words, and for the avoidance of doubt, in the event you are eligible under the terms of this Agreement to receive benefits under both the Severance Plan and Sections 3(a) and (b) of this Agreement, you will receive the greater of the benefits under the Severance Plan or Sections 3(a) and (b) of this Agreement, but you will not receive benefits under both the Severance Plan and Sections 3(a) and (b) of this Agreement.  For purposes of clarity, you will also receive the benefits described in Sections 3(c) through 3(e) of this Agreement in the event you experience a Qualifying CIC Termination (as defined in sub-paragraph (i) of this Section.
Except as expressly provided in this Agreement, this Agreement renders null and void all prior agreements between you and the Company and constitutes the entire agreement between you and the Company regarding the subject matter of this Agreement.  This Agreement 

 

may be modified only in a written document signed by you and a duly authorized officer of the Company.  
11.    Company Property.  You represent that on or before the Effective Date, you will return to the Company all property that belongs to the Company, including (without limitation) copies of documents that belong to the Company and files stored on your computer(s) that contain information belonging to the Company.

12.    Confidentiality of Agreement.  You agree that, until such time as this Agreement is disclosed publicly by the Company, you will not disclose to others the existence or terms of this Agreement, except that you may disclose such information to your attorney, or financial advisors (provided such individuals agree that they will not disclose to others the existence or terms of this Agreement). 

13.    No Disparagement.  You agree that you will not make any disparaging statements (orally or in writing) about the Company or its products, services, strategy, legal or business practices, past venture capital investors, known institutional investors, or current or past (as of the date of this Agreement) directors, officers, and known employees who served during your tenure at Etsy.  The Company will instruct current members of the Etsy Executive Team and Board to refrain from making any disparaging statements about you.

14.    Cooperation.  You agree that you will provide reasonable cooperation with and assistance to the Company in connection with the defense or prosecution of any claim that may be made against or by the Company, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial, legislative, or other body or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings are related to services performed or required to be performed by you, knowledge possessed by you, or any act or omission by you. The Company will reimburse you for reasonable related expenses in connection with such cooperation. 

15.    Preservation of Rights.  Nothing in Sections 6, 10, 11, or 12, above, or otherwise in this Agreement, shall be construed to prevent you from (a) reporting violations of United States or other law or regulations to or (b) participating in an investigation conducted by, or providing truthful information to any government, regulatory, or self-regulatory agency in accordance with law, including but not limited to the Department of Justice, the Securities and Exchange Commission ("SEC"), the U.S. Equal Employment Opportunity Commission ("EEOC"), the Congress, and any agency Inspector General, or from making other disclosures that are protected under the whistleblower or other provisions of any applicable United States or other law or regulation. You do not need the prior authorization of the Company to make any such reports or disclosures and you are not required to notify the Company that you have made such reports or disclosures. Nevertheless, you acknowledge that you cannot recover any monetary benefit, damages, or equitable relief with respect to any of the claims released and waived in this Agreement through or from any charge filed by you with a fair employment 

 

practices agency such as the EEOC or any action commenced by a third party. However, nothing in this Agreement prevents you from obtaining a monetary award from the SEC.

16.    Indemnification.  The Indemnification Agreement dated as of January 27, 2017 shall remain in effect in accordance with its terms.

17.    Taxes.  All payments under this Agreement will be subject to all deductions required by law, including applicable taxes and withholdings.  In accordance with its normal payroll practices, the Company will mail to your home address in the Company’s records any tax reporting forms it prepares in accordance with any payments made to you, at such time as those forms are prepared and/or filed. You will be solely responsible and liable for any taxes owed on any payments or benefits made or provided to you under this Agreement, except for taxes the Company believes it has an obligation to withhold from any such payments or benefits. 

18.    Section 409A.  The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively "Code Section 409A") and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance with Code Section 409A; provided, that the Company does not guarantee to you any particular tax treatment with respect to this Agreement and any payments hereunder.

For purposes of Code Section 409A, each payment is a separate payment and your right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., "payment shall be made within ten calendar days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion of the Company.  In no event may you, directly or indirectly, designate the calendar year of any payment to be made under this Agreement that is considered non-qualified deferred compensation.
With regard to any provision in this Agreement 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 shall 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 shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided, that this clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Internal Revenue Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect; 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 was incurred.
Notwithstanding any other provision hereof, if you are, as of the Effective Date, a "specified employee" for purposes of Treas. Reg. ß 1.409A-1(i), then any amount payable to you pursuant to this Agreement that is neither a short-term deferral within the meaning of Treas. Reg. ß 1.409A-1(b)(4) nor within the involuntary separation pay limit under Treas. Reg. ß 

 

1.409A-1(b)(9)(iii)(A) will not be paid before the date that is six months after the date of termination, or if earlier, the date of your death.  Any payments to which you would otherwise be entitled during such non-payment period will be accumulated and paid or otherwise provided to you on the first day of the seventh month following such date of termination, or if earlier, within thirty (30) calendar days of your death to your beneficiaries.
19.    Severability.  If any term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternate way to achieve the same result.

20.    Choice of Law.  This Agreement will be construed and interpreted in accordance with the laws of the State of New York (other than their choice-of-law provisions).

21.    Execution.  This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will constitute one agreement.  Execution of a facsimile copy will have the same force and effect as execution of an original, and a facsimile signature will be deemed an original and valid signature.

22.    Effective Date and Revocation. You agree by your signature below that you had, and that the Company gave you, at least twenty-one (21) days to review and consider this Agreement before signing it, and that such period was sufficient for you to fully and completely consider all of its terms. The Company hereby advises you to discuss this Agreement with your own attorney (at your own expense) during this period if you wish to do so. You may accept this Agreement by delivering a copy of the Agreement signed by you to me within twenty-one (21) days from the day you receive the Agreement. You may revoke your acceptance of the Agreement for a period of seven (7) days after signing the Agreement by delivering written notification to me within that seven-day period. If you do not revoke your acceptance of the Agreement, it will be effective on the eighth (8th) day after you sign it.  If you revoke your acceptance of this Agreement, you will not be entitled to the benefits listed in Section 3, above. You agree that you have carefully read this Agreement, fully understand what it means, and are entering into it voluntarily.
Please indicate your agreement with the above terms by signing below.  
Very truly yours,
/s/ Josh Silverman
______________________________
Josh Silverman
CEO & President
Etsy, Inc.

 

I agree to the terms of this Agreement.
/s/ Linda Kozlowski
Dated:  9/11/18    

 

EXHIBIT A
SUPPLEMENTAL RELEASE
You and Etsy, Inc. (the "Company") hereby enter into this Supplemental Release (the "Supplemental Release"), which will become effective on _____.
1.Last Date of Employment.  Your last day of employment with the Company ended on __________________ ("Effective Date").

2.Release of All Claims.  In consideration for receiving the retention benefits described in Section 3 of the letter agreement between you and the Company dated as of _______________ (the "Agreement’), and to the fullest extent permitted by applicable law, you hereby waive, release and promise never to assert any claims or causes of action, whether or not now known, against the Company or its predecessors, successors or past or present subsidiaries, stockholders, directors, officers, employees, consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter, including (without limitation) any matter related to your employment with the Company or the termination of that employment, claims for attorneys’ fees or costs, claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract or breach of the covenant of good faith and fair dealing, claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the New York State Human Rights Law, the New York Labor Law, and the New York City Human Rights Law; claims under any and all other federal, state, and local statutes, regulations, and laws of any type; and claims for any compensation or benefits not specifically referenced in the Agreement, including claims under any Company incentive plan, bonus plan, or severance plan).  Execution of this Supplemental Release does not bar (i) any claim that arises hereafter, including (without limitation) a claim for breach of this Supplemental Release, (ii) any rights you may already have to be indemnified and/or advanced or reimbursed expenses pursuant to any corporate document of the Company or its affiliates or applicable law, including the Indemnification Agreement dated January 27, 2017, or your right to be covered under any applicable directors’ and officers’ liability insurance policies, (iii) any rights to the retention benefits set forth in the Agreement and which are owed or payable after the date of this Supplemental Release, and (iv) any rights to vested equity awards and any rights under any benefit plans of the Company under which you have a vested benefit  and for which amounts are payable after the Effective Date.

3.No Admission.  Nothing contained in this Supplemental Release will constitute or be treated as an admission by you or the Company of liability, any wrongdoing or any violation of law.

4.Other Agreements.  Except as expressly provided in the Agreement and this Supplemental Release, the Agreement and this Supplemental Release render null and void all prior agreements between you and the Company and constitutes the entire agreement between you and the Company regarding the subject matter of the Agreement and this Supplemental Release.  This Supplemental Release may be modified only in a written document signed by you and a duly authorized officer of the Company.  

5.Severability.  If any term of this Supplemental Release is held to be invalid, void or unenforceable, the remainder of this Supplemental Release will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternate way to achieve the same result.

 

6.Choice of Law.  This Supplemental Release will be construed and interpreted in accordance with the laws of the State of New York (other than their choice-of-law provisions).

7.Execution.  This Supplemental Release may be executed in counterparts, each of which will be considered an original, but all of which together will constitute one agreement.  Execution of a facsimile copy will have the same force and effect as execution of an original, and a facsimile signature will be deemed an original and valid signature.

8.Effective Date and Revocation. You agree by your signature below that you had, and that the Company gave you, at least twenty-one (21) days to review and consider this Supplemental Release before signing it, and that such period was sufficient for you to fully and completely consider all of its terms. The Company hereby advises you to discuss this Supplemental Release with your own attorney (at your own expense) during this period if you wish to do so. You may accept this Supplemental Release by delivering a copy of this Supplemental Release signed by you to me within twenty-one (21) days of the Effective Date. You may revoke your acceptance of this Supplemental Release for a period of seven (7) days after signing the Supplemental Release by delivering written notification to me within that seven-day period. If you do not revoke your acceptance of this Supplemental Release, it will be effective on the eighth (8th) day after you sign it.  If you revoke your acceptance of this Supplemental Release, you will not be entitled to the benefits listed in Section 3 of the Agreement. You agree that you have carefully read this Supplemental Release, fully understand what it means, and are entering into it voluntarily.

Please indicate your agreement with the above terms by signing below.  
Very truly yours,

______________________________
Josh Silverman
CEO & President
Etsy, Inc.

 

I agree to the terms of this Supplemental Release.
______________________________    
Linda Kozlowski
Dated:      

 

EXHIBIT B
PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

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