Document:

Exhibit

Exhibit 10.13
    
June 21, 2017
Dear Karen Mullane:
This letter (the “Agreement”) confirms the agreement between you and Etsy, Inc. (the “Company”) regarding the transition of your duties and responsibilities and separation from Etsy.
1.Last Day of Employment. Your last day of employment with the Company will be November 15, 2017 (the “Separation Date”).

2.Effective Date and Revocation.  You have up to 45 days after you first receive this Agreement to review it. You are advised to consult an attorney of your own choosing (at your own expense) before signing this Agreement.  You have seven days after you sign this Agreement to revoke it.  If you wish to revoke this Agreement after signing it, you may do so by delivering a letter of revocation to me within that seven-day period.  If you do not revoke this Agreement within that time period, this Agreement will become effective on the eighth day after the date you sign it (the “Effective Date”).  Because of the seven-day revocation period, no part of this Agreement will become effective or enforceable until the Effective Date.
3.Salary and Vacation Pay.  You will continue to receive your regular pay through the Separation Date.  Following your Separation Date, the Company will pay you all of your accrued but unused vacation time or PTO.  You acknowledge that the only payments and benefits that you are entitled to receive from the Company in the future are those specified in this Agreement, and that you will not be entitled to any additional compensation from the Company, including any salary, bonus or incentive compensation; any severance or separation payments or benefits of any kind; or other remuneration or benefits of any kind, except as specifically set forth in this Agreement and, if applicable, the Etsy, Inc. Change in Control Severance Plan.
4.Separation Benefits. In exchange for your execution of this Agreement and in exchange for your signing (no earlier than the Effective Date) and not revoking your acceptance of the Supplemental Release, a copy of which is attached as Exhibit A to this Agreement, for your continued compliance with your obligations under the Etsy, Inc. Severance Plan, a copy of which is attached as Exhibit B to this agreement (the “Severance Plan”), and for your continued compliance with your obligations under Sections 5, 6, 10, 11, 12, and 13, below, and for no other reason, the Company will provide you with the following benefits: 

		
	a.
	A payment in accordance with the Severance Plan Participation Notice you signed on July 17, 2015 equal to $65,000, payable in equal installments on the Company’s regular payroll dates over the course of three (3) months. Such payments shall commence within 60 days of the 

Separation Date and the first such payment shall include any unpaid amounts accrued from the Separation Date;

		
	b.
	An additional one-time lump sum payment to you of  $96,5001 payable within 60 days of the Separation Date;

		
	c.
	Reimbursement of your COBRA premiums for the Cobra Payment Period of 5 months, commencing within 60 days following the Separation Date, provided that 

the initial payment will include a catch-up payment to cover the period between the Separation Date and the date of such first payment; and

		
	d.
	Outplacement services for a period of four (4) months after the Separation Date;

		
	e.
	The ability to continue to work for the Company during the Transition Period described in Section 5, below;

		
	f.
	Payment of your salary during the Transition Period; 

		
	g.
	Continuation of your benefits during the Transition Period; 

		
	h.
	Continued vesting of your outstanding equity awards through the Separation Date; and

		
	i.
	Acceleration of fifty percent (50%) of the stock options and RSUs awarded to you on March 1, 2016, such that such RSUs and stock options will be vested and exercisable and all such RSUs will be vested on and as of the Separation Date and settled as soon as practicable thereafter.

		
	j.
	The Company will reimburse up to $1,000 in legal fees that you incur in connection with this Agreement. 

5.Transition Period. From now until the Separation Date (the “Transition Period”), you will continue to receive your current salary; you will be expected to be physically present in the Company’s offices unless specifically requested by the Company, and subject to your use of vacation days or PTO as approved by the Company; you will make yourself available to answer questions and to perform such tasks as the Company (and specifically, as the Chief Financial Officer requests); and you will 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. You agree to perform the above-listed duties with substantially the same degree of diligence and care consistent with past practice and to continue to use your reasonable best efforts to adhere to all applicable written Company policies. You agree that you will work exclusively for the Company during the Transition Period. If you begin working for another 
______________
1Pro-rata bonus assuming 100% plus 5 weeks salary

Company (or if you become self-employed) during the Transition Period, beginning on the date you commence such employment, you will not be entitled to any additional salary, compensation, or benefits from the Company, but all remaining portions of this Agreement, including your release of claims under Section 8, below, will remain in full force and effect.

6.Cooperation: During and after your employment with the Company, you shall assist the Company in connection with any litigation, investigation, or other legal or regulatory matter involving the Company. Any needed cooperation would be applied reasonably after the Separation Date so as not to interfere with future work. You agree that such assistance may include, but is not limited to, meeting with the Company’s legal counselor, other representatives and voluntarily providing testimony in legal proceedings if so requested by the Company. The Company will reimburse you for reasonable out-of pocket expenses incurred in rendering such assistance to the Company (not including attorney’s fees).

7.Equity Awards. Your equity awards (i.e., stock options and/or restricted stock units) will vest through the Separation Date in accordance with the terms and conditions of the applicable equity plan(s) and award agreement(s) pursuant to which they were granted. Any equity that is unvested as of the Separation Date (except as noted in Section 4) will be forfeited in accordance with those plan(s) and agreement(s). Any vested options as of the Separation Date will remain exercisable until three months from the Separation Date.  

The award agreement(s) between you and the Company evidencing your equity awards will remain in full force and effect and you agree to remain bound by them. You also acknowledge and agree that you will comply with the Company’s Insider Trading Policy, which states that you will remain subject to the insider trading restrictions until the next open trading window following the Separation Date or until you no longer possess material non-public information, whichever is later.

8.Release of All Claims.  In consideration for the benefits offered to you in this Agreement, to the fullest extent permitted by applicable law, you hereby waive and release any and all 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, 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 for any compensation or benefits not specifically referenced in this Agreement, including claims under any offer letter or employment agreement between you and the Company, the Severance Plan, the Etsy, Inc. Change in Control Severance Plan  or any other Company incentive plan, bonus plan, or severance plan; 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 Employee Retirement Income Security Act, the New York State Human Rights Law, the New York Labor Law, and the New York City Human Rights Law, all as amended; and claims under any and all other international, federal, state, and local statutes, regulations, codes, rules, ordinances, and laws of any type.  However, this release covers only those claims that arose prior to the execution of this Agreement.  Execution of this Agreement 

does not bar any claim that arises hereafter, including (without limitation) a claim for breach of this Agreement.  

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 your Proprietary Information and Inventions Agreement or Confidentiality & Proprietary Inventions Agreement with the Company, as applicable, which you signed on November 5, 2013, and a copy of which is attached as Exhibit C.  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 agree to return to the Company, on or before your Separation Date, all property that belongs to the Company, including (without limitation) copies of documents that belong to the Company and files stored on your personal or home computer(s) or device(s) that contain information belonging to the Company.  If you have Company property or information at your home, or in any location other than the Company’s offices, you agree to return such property to Company promptly, and in no event later than three business days following your Separation Date.

12.Confidentiality of Agreement.  You agree that you will not disclose to others the existence or terms of this Agreement, except that you may disclose such information to your spouse, attorney or tax adviser if such individuals agree that they will not disclose to others the existence or terms of this Agreement and to government agencies or officials in accordance with Section 14, below.

13.No Disparagement.  You agree that you will never make any negative or disparaging statements (orally or in writing) about the Company or its directors, officers, employees, products, services or business practices. This Section 13 is not intended and should not be read to prevent you from testifying in good faith under oath pursuant to a subpoena, from cooperating in a governmental investigation or inquiry or providing information to any governmental agency or official, or from acting as required by governing law. The Company will instruct current members of the Etsy Executive Team and the Board to refrain from making any disparaging statements about you.

14.Preservation of Rights.  Nothing in Sections 6, 8, 12 or 13, 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.

15.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.

16.Choice of Law.  This Agreement will be construed and interpreted in accordance with the laws of the State of New York.

17.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.

18.Tax Withholding.  The Company will withhold taxes from the payments described in this Agreement and report amounts to tax authorities as it determines it is required to do.

19.Notice to Employee.  I have received the Notice to Employee Under the Older Workers Benefit Protection Act, which is attached as Exhibit D to this Agreement.

20.Acknowledgments.  By signing this Agreement, I acknowledge and agree that:  
(i)    I have carefully read, and understand, this Agreement; 
(ii)    I have voluntarily chosen to enter into this Agreement and have not been forced or pressured in any way to sign it; and
(iii)    In deciding to sign this Agreement, I am not relying on any promises or representations that are not set forth in this Agreement.

Please indicate your agreement with the above terms by signing below.  
This offer will expire at midnight on August 6, 2017 if you do not sign this Agreement and return it to me by that date.
Very truly yours,
/s/ Brian Christman

Brian Christman
SVP of Human Resources
Etsy, Inc.

I agree to the terms of this Agreement, and I am voluntarily signing it.
/s/ Karen Mullane 

Signature of Karen Mullane
Dated:   7/19/17

EXHIBIT A

EXHIBIT A
SUPPLEMENTAL RELEASE
You and Etsy, Inc. (the “Company”) hereby enter into this Supplemental Release (the “Supplemental Release”), which will become effective on the date described in Section 9, below.
1.Last Date of Employment.  Your employment with the Company ended on __________________ (“Effective Date”).

2.Release of All Claims.  In consideration for receiving the retention benefits described in Section 4 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 April 15, 2015, 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 (except for the Indemnification Agreement, the Etsy, Inc. Change in Control Severance Plan, and the PIIA, as defined in the Agreement) and constitute 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.Disclosures.  You hereby represent, acknowledge, and agree that you have, prior to signing this Supplemental Release, fully disclosed to the CEO, CFO and/or Board all information that you possess with respect to any violations, or potential violations, of the securities laws or any other laws and regulations with which the Company has an obligation to comply. 

6.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.

7.Choice of Law.  This Supplemental Release will be construed and interpreted in accordance with the laws of the State of New York.

8.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.

9.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 4 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
Chief Executive Officer
Etsy, Inc.

I agree to the terms of this Supplemental Release.
    
Signature

Karen Mullane    
Print Name
Dated:      

EXHIBIT B
SEVERANCE PLAN

EXHIBIT C
PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT OR CONFIDENTIALITY & PROPRIETARY INVENTIONS AGREEMENT

Exhibit A
PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

Effective as of October 30, 2013, the following confirms an agreement between Etsy, Inc., a Delaware corporation (the Company) and the individual identified on the signature page to this Agreement. This Agreement is a material part of the consideration for my employment by the Company. In exchange for the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.    NO CONFLICTS.    I have not made and agree not to make any agreement, oral or written, that is in conflict with this Agreement or my employment with the Company. I will not violate any agreement with or the rights of any third party. When acting within the scope of my employment (or otherwise on behalf of the Company), I will not use or disclose my own or any third party's confidential information or intellectual property (collectively, Restricted Materials), except as expressly authorized by the Company in writing. Further, I have not retained anything containing any confidential information of a prior employer or other third party, whether or not created by me.

2.    INVENTIONS.

a.    Definitions.    Intellectual Property Rights means any and all patent rights, copyright rights, mask work rights, trade secret rights, sui generis database rights and all other intellectual and industrial property rights of any sort throughout the world (including any application therefore). Invention means any idea, concept, discovery, invention, development, technology, work of authorship, trade secret, software, firmware, tool, process, technique, know-how, data, plan, device, apparatus, specification, design, circuit, layout, mask work, algorithm, program, code, documentation or other material or information, tangible or intangible, whether or not it may be patented, copyrighted or otherwise protected (including all versions, modifications, enhancements and derivative works thereof).

b.    Assignment.    To the fullest extent under applicable law, the Company shall own all right, title and interest in and to all Inventions (including all Intellectual Property Rights therein or related thereto) that are made, conceived or reduced to practice, in whole or in part, by me during the term of my employment with the Company and which arise out of research or other activity conducted by, for or under the direction of the Company (whether or not conducted at the Company's facilities, during working hours or using Company assets), or which are useful with or relate directly or indirectly to any Company Interest (meaning any product, service, other Invention or Intellectual Property Right that is sold, leased, used or under consideration or development by the Company). I will promptly disclose and provide all of the foregoing Inventions (the Assigned Inventions) to the Company. I hereby make and agree to make all assignments to the Company necessary to accomplish the foregoing ownership. Assigned Inventions shall not include any Invention (i) that I develop entirely on my own time, (ii) without use of any Company assets and (iii) which is not useful with and does not relate to any Company Interest.

c.    Assurances.    I will further assist the Company, at its expense, to evidence, record and perfect such assignments, and to perfect, obtain, maintain, enforce and defend any rights specified to be so owned or assigned. I hereby irrevocably designate and appoint the Company as my agent and attorney-in-fact to act for and in my behalf to execute and file any document and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by me.

d.    Other Inventions.    If I wish to clarify that something created by me prior to my employment that relates to the Company's actual or proposed business is not within the scope of this Agreement, I have listed it on Appendix A. If (i) I use or disclose any Restricted Materials when acting within the scope of my employment (or otherwise on behalf of the Company), or (ii) any Assigned Invention cannot be fully made, used, reproduced or otherwise exploited without using or violating any Restricted Materials, I hereby grant and agree to grant to the Company a perpetual, irrevocable, worldwide, royalty-free, non-exclusive, sublicensable right and license to exploit and 

exercise all such Restricted Materials and Intellectual Property Rights therein. I will not use or disclose any Restricted Materials for which I am not fully authorized to grant the foregoing license.

e.    Moral Rights.    To the extent allowed by applicable law, the terms of this Section 2 include all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as moral rights, artist's rights, droit moral or the like (collectively, Moral Rights). To the extent I retain any such Moral Rights under applicable law, I hereby ratify and consent to any action that may be taken with respect to such Moral Rights by or authorized by the Company and agree not to assert any Moral Rights with respect thereto. I will confirm any such ratification, consent or agreement from time to time as requested by the Company.

3.    PROPRIETARY INFORMATION. I agree that all Assigned Inventions and all other financial, business, legal and technical information, including the identity of and information relating to the Company's employees, Affiliates and Business Partners (as such terms are defined below), which I develop, learn or obtain during my employment or that are received by or for the Company in confidence, constitute Proprietary Information. I will hold in strict confidence and not disclose or, except within the scope of my employment, use any Proprietary Information. Proprietary Information will not include information that I can document is or becomes readily publicly available without restriction through no fault of mine. Upon termination of my employment, I will promptly return to the Company all items containing or embodying Proprietary Information (including all copies), except that I may keep my personal copies of (a) my compensation records, (b) materials distributed to shareholders generally and (c) this Agreement. I also recognize and agree that I have no expectation of privacy with respect to the Company's networks, telecommunications systems or information processing systems (including, without limitation, stored computer files, electronic mail messages and voice messages), and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice.

4.    RESTRICTED ACTIVITIES.    For the purposes of this Section 4, the term Company includes the Company and all other persons or entities that control, are controlled by or are under common control with the Company (Affiliates).

a.    Definitions.    Any Capacity includes, without limitation, to (i) be an owner, founder, shareholder, partner, member, advisor, director, consultant, contractor, agent, employee, affiliate or co-venturer, (ii) otherwise invest, engage or participate in, (iii) be compensated by or (iv) prepare to be or do any of the foregoing or assist any third party to do so; provided, Any Capacity will not include being a holder of less than one percent (1%) of the outstanding equity of a public company. Business Partner means any past, present or prospective customer, vendor, supplier, distributor or other business partner of the Company with which I have contact during my employment. Cause means to recruit, employ, retain or otherwise solicit, induce or influence (or to attempt to do so). Solicit means to (i) service, take orders from or solicit the business or patronage of any Business Partner for myself or any other person or entity, (ii) divert, entice or otherwise take away from the Company the business or patronage of any Business Partner, or to attempt to do so, or (iii) to solicit, induce or encourage any Business Partner to terminate or reduce its relationship with the Company.

b.    Acknowledgments. I acknowledge and agree that (i) the Company's business is highly competitive, secrecy of the Proprietary Information is of the utmost importance to the Company and I will learn and use Proprietary Information in performing my work for the Company and (ii) my position may require me to establish goodwill with Business Partners and employees on behalf of the Company and such goodwill is extremely important to the Company's success.

c.    As an Employee. During my employment with the Company, I will not directly or indirectly: (i) Cause any person to leave their employment with the Company (other than terminating subordinate employees in the course of my duties for the Company); (ii) Solicit any Business Partner; or (iii) act in Any Capacity in or with respect to any commercial activity which competes or is reasonably likely to compete with any business that the Company conducts, or demonstrably anticipates conducting, at any time during my employment (a Competing Business).

d.    After Termination. For the period of one year immediately following termination of my employment with the Company (for any or no reason, whether voluntary or involuntary), I will not directly or indirectly: (i) Cause any 

person to leave their employment with the Company; or (ii) Solicit any Business Partner; or (iii) act in Any Capacity in or with respect to any Competing Business located within the State of New York, the rest of the United States, or anywhere else in the world.

e.    Enforcement. I understand that the restrictions set forth in this Section 4 are intended to protect the Company's interest in its Proprietary Information and established relationships and goodwill with employees and Business Partners, and I agree that such restrictions are reasonable and appropriate for this purpose. If at any time any of the provisions of this Section 4 are deemed invalid or unenforceable or are prohibited by the laws of the state or place where they are to be performed or enforced, by reason of being vague or unreasonable as to duration or geographic scope or scope of activities restricted, or for any other reason, such provisions shall be considered divisible and shall become and be immediately amended to include only such restrictions and to such extent as shall be deemed to be reasonable and enforceable by the court or other body having jurisdiction over this Agreement. The Company and I agree that the provisions of this Section 4, as so amended, shall be valid and binding as though any invalid or unenforceable provision had not been included.

5.    EMPLOYMENT AT WILL. I agree that this Agreement is not an employment contract for any particular term. I have the right to resign and the Company has the right to terminate my employment at will, at any time, for any or no reason, with or without cause. This Agreement does not purport to set forth all of the terms and conditions of my employment, and as an employee of the Company, I have obligations to the Company which are not described in this Agreement. However, the terms of this Agreement govern over any such terms that are inconsistent with this Agreement, and supersede the terms of any similar form that I may have previously signed. This Agreement can only be changed by a subsequent written agreement signed by the President of the Company (or authorized designee).

6.    SURVIVAL. I agree that my obligations under Sections 2, 3 and 4 of this Agreement shall continue in effect after termination of my employment, regardless of the reason, and whether such termination is voluntary or involuntary, and that the Company is entitled to communicate my obligations under this Agreement to any of my potential or future employers. My obligations under Sections 2, 3 and 4 also shall be binding upon my heirs, executors, assigns and administrators, and shall inure to the benefit of the Company, its Affiliates, successors and assigns. This Agreement may be freely assigned by the Company to any third party.

7.    GOVERNING LAW; REMEDIES. Any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of New York without regard to the conflict of laws provisions thereof. The failure of either party to enforce its rights under this Agreement at any time for any period shall not be construed as a waiver of such rights. Unless expressly provided otherwise, each right and remedy in this Agreement is in addition to any other right or remedy, at law or in equity, and the exercise of one right or remedy will not be deemed a waiver of any other right or remedy. I further agree that if one or more provisions of this Agreement are held to be illegal or unenforceable under applicable law, such illegal or unenforceable portion shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable. I also understand that any breach or threatened breach of this Agreement will cause irreparable harm to the Company for which damages would not be a adequate remedy, and, therefore, the Company will be entitled to injunctive relief with respect thereto (without the necessity of posting any bond) in addition to any other remedies.

I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO 

PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT ONE COUNTERPART WILL BE RETAINED BY THE COMPANY AND THE OTHER COUNTERPART WILL BE RETAINED BY ME.

	
		
	ETSY, INC.
	EMPLOYEE

	 
	 

	By: /s/ Brian Christman
	Name: Karen Mullane

	Name:  Brian Christman
	Signature: /s/ Karen Mullane

	Title: VP of Human Resources
	Address: XXXXXXXXXX

	 
	 

	
	
	 

EXHIBIT D
NOTICE TO EMPLOYEE UNDER THE
OLDER WORKERS BENEFIT PROTECTION ACTExhibit

EXHIBIT 10.17
ETSY, INC. 
EXECUTIVE SEVERANCE PLAN 

(Effective as of February 14, 2018)
The Etsy, Inc. (the “Company”) Executive Severance Plan (the “Plan”) is designed to provide separation pay to eligible executives of the Company whose employment terminates in a Qualifying Termination (as defined in the Plan). The Plan is an unfunded welfare plan maintained primarily for the purpose of providing severance benefits to a select group of management and highly compensated employees.  
This Plan is governed by the laws of the State of Delaware, without regard to conflicts of law principles that might otherwise point to the law of a different jurisdiction.  
I.ELIGIBILITY FOR BENEFITS
1.    Participation.  The Company’s Board of Directors (the “Board”) or its Compensation Committee (the “Committee”) will select the Company executives who are eligible to participate in the Plan.  The Plan Administrator (as defined below) will deliver a notice to each such executive, substantially in the form attached hereto as the “Participation Notice,” informing the executive that he or she is eligible to participate in the Plan.  Each executive of the Company who receives a Participation Notice is a “Participant” in the Plan. 
2.    Conditions to Receive Benefits
A.    In order to receive benefits under the Plan, a Participant must: 
(i)    Experience a Qualifying Termination; 
(ii)    Execute, and not revoke, a general release of all claims (the “Release”) in the form provided by the Company; 
(iii)    Return all Company Property to the Company; and 
(iv)    Comply with all agreements between the Company and the Participant relating to confidentiality, non-competition, non-solicitation and non-interference.  
The Company shall deliver the Release to the Participant no later than five days after his or her Qualifying Termination.  The Release will specify a deadline for executing the Release, which date shall be no later than 50 days after the Participant’s Qualifying Termination.  If the Release is not executed, effective, and irrevocable by the 60th day after the Participant’s Qualifying Termination, the Participant will cease to be eligible for benefits under this Plan.

B.    In addition to the conditions in Section I.2.A, a Participant shall not be entitled to benefits under the Plan unless and until such Participant has entered into the Company’s standard form of Employee Proprietary Information and Inventions Agreement or any similar or successor document.
C.    If a Participant has not substantially complied with the material terms of all material agreements between the Company and the Participant, or the Participant has engaged in conduct that would give rise to a termination for Cause (whether such conduct occurred before or after the Participant’s Separation), the Plan Administrator may deny and/or discontinue the payment of the Participant’s Plan benefits and may require the Participant to repay the gross amount (before withholding) of any portion of the benefits already received under the Plan (including to forfeit equity and any gain realized on the vesting, exercise, settlement, sale, transfer or other disposition of any equity-based awards, in each case to the extent attributable to accelerated vesting under the Plan); provided that the Company shall first provide written notice of such noncompliance and repayment obligation to the Participant and allow 10 days after receipt of such notice for the Participant to cure such noncompliance (if capable of being cured).  If the Plan Administrator notifies a Participant that repayment is required, such amounts shall be repaid in cash within 30 calendar days of the date the written notice is sent.  Any remedy under this paragraph C shall be in addition to, and not in place of, any other remedy, including injunctive relief, forfeiture of equity and other compensation rights and money damages, that the Company may have.
II.    Plan Benefits
If a Participant has a Qualifying Termination and satisfies the eligibility conditions set forth in Section I, above, the Company will provide the following severance benefits, subject to the terms of the Plan: 
1.    Salary Continuation.  An amount equal to (x) the Participant’s Monthly Base Salary times (y) the number of months in the Severance Period.  Subject to subparagraphs (A) through (C), below, such amount shall be payable in equal installments on the Company’s regular payroll dates from the Qualifying Termination through the number of months in the Severance Period.  
A.    Subject to any delay required by Section 409A of the Code (as described in Section III.1, below), payment shall commence within 60 days after the Qualifying Termination.  The first payment shall include any unpaid installments accrued from the date of the Participant’s Qualifying Termination.  
B.    If the Participant’s Separation occurs within 12 months after a Change in Control that qualifies as a payment event under Section 409A(a)(2)(A)(v) of the Code, payment shall be made in a lump sum; provided that this provision shall not apply with respect to any amount that is (i) subject to Section 409A of the Code and (ii) payable to a Participant who was selected for participation before February 14, 2018.

2

C.    If the period during which payments must commence spans two calendar years, then payment of any amounts that are subject to the requirements of Section 409A of the Code shall commence in the second calendar year.
2.    Health Benefits.  If the Participant (x) was a participant in the Company’s group health insurance plans (major medical, dental and vision) on the date of such Participant’s Qualifying Termination and (y) timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (together with any state law of similar effect, “COBRA”), the Company will either provide (or arrange to be provided) such continued coverage at active employee rates through the end of the COBRA Payment Period (as defined below) or pay to the Participant cash in lieu of continued coverage (as described in the paragraph below).  
Cash in lieu of continued coverage shall consist of a payment, for each month during the COBRA Payment Period, equal to the excess of the cost of the elected level of COBRA coverage for such month over the monthly cost charged to active employees for the same coverage. The COBRA Payment Period shall begin on the first day after the Participant’s active employee health coverage ends due to Separation and end on the earliest to occur of (A) the end of the COBRA Period, (B) the expiration of the Participant’s eligibility for the continuation coverage under COBRA, and (C) the first month for which the Participant is eligible for health insurance coverage in connection with new employment or self-employment.  Payment of cash in lieu of continued coverage shall be due on the first day of each month during the COBRA Payment Period for which the Company does not provide continued coverage at active employee rates, except that payments shall commence (with any make-up payments) on the date prescribed by subsection 1, above.  
The amount payable under this subsection 2 will not include any amounts that the Participant has elected to contribute to a health care flexible spending account; such amounts, if any, are the sole responsibility of the Participant.
3.    Vesting of Equity.  If the Participant’s Separation is a Qualifying CIC Termination, each of the Participant’s then-outstanding equity awards shall vest (if not already fully vested) as to a percentage of unvested shares (if any, as of the effective date prescribed by the next following sentence) per equity award equal to the Acceleration Factor.  Such vesting shall be effective as of the later of the Participant’s Qualifying CIC Termination or the date of the Change in Control.
4.    Non-Duplication.  No provision of this Plan shall be interpreted to duplicate any payment or other compensation or benefit that a Participant is entitled to receive under another arrangement.  By way of example, a provision for severance in an offer letter or similar agreement shall be offset against the Participant’s salary continuation under this Plan.
III.    Tax Provisions
1.    Section 409A of the Code
The Plan shall be construed consistently with the intent that payments under the Plan be exempt from the requirements of Section 409A of the Code (and any state law of similar effect) to the extent possible (i.e., applying the “short-term deferral” rule described in Treas. Reg. § 1.409A-1(b)(4), the “two-year, two-time” rule described in Treas. Reg. § 1.409A-1(b)(9), or another exemption), 

3

and to comply with the requirements of Section 409A (to avoid taxes thereunder) to the extent that Section 409A applies.  For purposes of Section 409A, each installment in a series of installments shall be treated as a separate payment.
No payment that is subject to Section 409A shall be made to a “specified employee” (determined by the Company as of the Participant’s Separation in accordance with Treas. Reg. § 409A-1(i)) before the first day after the earlier of (A) the date that is six months after the Participant’s Separation or the (B) the Participant’s death.  Any payment that is delayed by reason of this six-month delay requirement shall be made, without interest, on the later of the first payment date after the expiration of the six-month delay period required by Section 409A(a)(2)(B)(i) of the Code or the otherwise scheduled payment date.
2.    Golden Parachute Tax Limitation (Section 280G)
The Internal Revenue Code imposes an excise tax on certain payments and other benefits received by certain officers and stockholders of a company in connection with its change of control.  Such payments include severance pay, loan forgiveness and acceleration of vesting.  
A.    Basic Rule.  In the event that it is determined that any payment, benefit, vesting or distribution of any type (cash, equity or otherwise) to or for the benefit of a Participant pursuant to the terms of this Plan or any other agreement, including a benefit plan, Participant’s equity award agreements and loan forgiveness (the “Total Payments”), would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are collectively referred to as the “Excise Tax”), then the Total Payments shall be made to the Participant either (i) in full or (ii) as to such lesser amount as would result in no portion of the Total Payments being subject to Excise Tax (a “Reduced Payment”), whichever of the foregoing results in the receipt by the Participant on an after-tax basis, of benefits of the greatest value, notwithstanding that all or some portion of the Total Payments may be subject to the Excise Tax.
B.    Rules Applicable to Reduced Payments
(i)    Determination by Accountant.  The determination as to whether any of the Total Payments are “parachute payments” (within the meaning of Section 280G of the Code) and whether to make a Reduced Payment shall be made by an independent accounting firm (the “Accounting Firm”) selected by the Company (the “Accounting Firm”), which shall provide such determination (the “Determination”), together with detailed supporting calculations both to the Company and to the Participant within seven business days of the Participant’s Qualifying CIC Termination, if applicable, or such earlier time as is requested by the Company or by the Participant (if the Participant reasonably believes that any of the Total Payments may be subject to the Excise Tax).  In any event, as promptly as practicable following the Accounting Firm’s Determination, the Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her and shall promptly pay or transfer to or for the benefit of the Participant in 

4

the future such amounts as become due to him or her.  Any Determination by the Accounting Firm shall be binding upon the Company and the Participant, absent manifest error.
(ii)    Reduction of Payments.  For purposes of determining whether to make a Reduced Payment, if applicable, the Company shall cause to be taken into account all federal, state and local income and employment taxes and excise taxes applicable to the Participant (including the Excise Tax).  If a Reduced Payment is made, the Company shall reduce or eliminate the Total Payments in the following order: (1) cancellation of accelerated vesting of options with no intrinsic value (i.e., options for which the exercise price is greater than the fair market value of the underlying shares), (2) reduction of cash payments, (3) cancellation of accelerated vesting of equity awards other than options, (4) cancellation of accelerated vesting of options with intrinsic value and (5) reduction of other benefits paid to the Participant.  In the event that acceleration of vesting is reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant of the Participant’s equity awards.  In the event that cash payments or other benefits are reduced, such reduction shall occur in reverse order beginning with payments or benefits which are to be paid farthest in time from the date of the Determination. 
C.    Underpayments and Overpayments.  As a result of uncertainty in the application of Sections 4999 and 280G of the Code at the time of the initial Determination by the Accounting Firm hereunder, it is possible that payments will have been made by the Company which should not have been made (an “Overpayment”) or that additional payments which will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of whether and to what extent a Reduced Payment shall be made hereunder.  In either event, the Accounting Firm shall determine the amount of the Underpayment or Overpayment that has occurred.  In the event that the Accounting Firm determines that an Overpayment has occurred, such Overpayment shall be treated for all purposes as a loan to the Participant that he or she shall repay to the Company, together with interest at the applicable federal rate prescribed by Section 1274(d) of the Code; provided, however, that the Participant shall not be required to repay any amount to the extent that such repayment would not reduce the amount that is subject to taxation under Section 4999 of the Code.  In the event that the Accounting Firm determines that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate prescribed by Section 1274(d) of the Code.
If this Section III.2 is applicable with respect to a Participant’s receipt of a Reduced Payment, it shall supersede any contrary provision of any plan, arrangement or agreement governing the Participant’s rights to the Total Payments.

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	IV.
	CLAIMS AND APPEALS

1.    Application of Claims and Appeals Procedures.  The provisions of this Section IV shall apply to any claim for a benefit under the Plan, regardless of the basis asserted for the claim and regardless of when the act or omission upon which the claim is based occurred.  
2.    Initial Claims.
A.    Any claim for benefits shall be in writing (which may be electronic if permitted by the Plan Administrator) and shall be delivered to the Plan Administrator.
B.    Each claim for benefits shall be decided by the Claims Administrator within a reasonable period of time, but not later than 90 days after such claim is received by the Claims Administrator (without regard to whether the claim submission includes sufficient information to make a determination), unless the Claims Administrator determines that special circumstances require an extension of time for processing the claim.  If the Claims Administrator determines that an extension of time for processing is required, the Claims Administrator shall notify the claimant in writing before the end of the initial 90-day period of the circumstances requiring an extension of time and the date by which a decision is expected.
C.    If a claim is denied in whole or in part, the Claims Administrator shall provide to the claimant a written decision, issued by the end of the period prescribed by paragraph B, above, that includes the following information:
(i)    The specific reason or reasons for denial of the claim;
(ii)    References to the specific Plan provisions upon which such denial is based;
(iii)    A description of any additional material or information necessary to perfect the claim, and an explanation of why such material or information is necessary;
(iv)    An explanation of the appeal procedures Plan’s and the applicable time limits; and
(v)    A statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA, if his claim is denied upon review.
3.    Appeals.
A.    If a claim for benefits is denied in whole or in part, the claimant may appeal the denial to the Plan Administrator.  Such appeal shall be in writing (which may be electronic, if permitted by the Plan Administrator), may include any written comments, documents, records, or other information relating to the claim for benefits, and shall be delivered to the 

6

Plan Administrator within 60 days after the claimant receives written notice that his claim has been denied.
B.    The Plan Administrator shall decide each appeal within a reasonable period of time, but not later than 60 days after such claim is received by the Plan Administrator, unless the Plan Administrator determines that special circumstances require an extension of time for processing the appeal.
(i)    If the Plan Administrator determines that an extension of time for processing is required, the Plan Administrator shall notify the claimant in writing before the end of the initial 60-day period of the circumstances requiring an extension of time and the date by which the claims administrator expects to render a decision.
(ii)    If an extension of time pursuant to subparagraph (i), above, is due to a claimant’s failure to submit information necessary to decide the appeal, the period for deciding the appeal shall be tolled from the date on which the notification of extension is sent to the claimant until the date on which the claimant responds to the request for additional information.
C.    In connection with any appeal, a claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his claim for benefits.  A document, record, or other information shall be considered relevant to a claim for benefits if such document, record, or other information:
(i)    Was relied upon in making the benefit determination;
(ii)    Was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination; or
(iii)    Demonstrates compliance with processes and safeguards designed to ensure and to verify that the benefit determination was made in accordance with the terms of the Plan and that such terms of the Plan have been applied consistently with respect to similarly situated claimants.
D.    The Plan Administrator’s review on appeal shall take into account all comments, documents, records and other information submitted by the claimant, without regard to whether such information was considered in the initial benefit determination.
E.    If an appeal is denied in whole or in part, the Plan Administrator shall provide to the claimant a written decision, issued by the end of the period prescribed by paragraph B, above, that includes the following information:
(i)    The specific reason or reasons for the decision;

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(ii)    References to the specific Plan provisions upon which the decision is based;
(iii)    An explanation of the claimant’s right to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his claim for benefits (as determined pursuant to paragraph C, above); and
(iv)    A statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA.
4.    Other Rules and Rights Regarding Claims and Appeals.
A.    A claimant may authorize a representative to pursue any claim or appeal on his behalf.  The Plan Administrator may establish reasonable procedures for verifying that any representative has in fact been authorized to act on his behalf. 
B.    Notwithstanding the deadlines prescribed by this Section IV, the Plan Administrator and any claimant may agree to a longer period for deciding a claim or appeal or for filing an appeal, provided that the Plan Administrator shall not extend any deadline for filing an appeal unless imposition of the otherwise-applicable deadline would be unreasonable under the applicable circumstances.
5.    Interpretation.
The provisions of this Section IV are intended to comply with Section 503 of ERISA and shall be administered and interpreted in a manner consistent with such intent.
6.    Litigation and Forum Selection
A.    No Applicable Claim for non-payment or underpayment of benefits allegedly owed under the Plan may be filed in court (I) before the claimant has exhausted the claims review procedures set forth above or (II) more than one year after the earliest of:
(i)    The date the first benefit payment was actually made;
(ii)    The date the first benefit payment was allegedly due;
(iii)    The date the Plan, the Plan Administrator, and the Claims Administrator, or any representative of the Plan first repudiated its alleged obligation to provide such benefits (regardless of whether such repudiation occurred before or during the claims review process described above);
provided that if a request for administrative review, timely made in accordance with Section IV, is pending before the Claims Administrator or Plan Administrator, when the one year period described in this Section IV.6.A expires, the deadline for filing such claim or action 

8

in a court with proper jurisdiction shall be extended to the date that is 120 calendar days after the final denial (including a deemed denial) of the claim on administrative review.  
B.    For purposes of this Section IV.6, an “Applicable Claim” is:
(i)    A claim or action to recover benefits allegedly due under the provisions of the Plan or by reason of any law;
(ii)    A claim or action to clarify rights to future benefits under the terms of the Plan;
(iii)    A claim or action to enforce rights under the Plan; or 
(iv)    Any other claim or action that (A) relates to the Plan, and (B) seeks a remedy, ruling, or judgment of any kind against the Plan, the Company, the Claims Administrator or the Plan Administrator with respect to benefits under the Plan or otherwise with respect to the Plan.
C.    In the event of any Applicable Claim brought by or on behalf of two or more claimants, the requirements of this Section IV.6 shall apply separately with respect to each claimant.
D.    To the fullest extent permitted by law, any lawsuit brought in whole or in part under ERISA section 502 (or any successor provision) by a claimant and relating to the Plan, benefits under the Plan, the lawfulness of any Plan provision or the administration of the Plan shall be filed in one of the following courts: (a) the United States District Court for the Eastern District of New York; or (b) the United States District Court for the district in which the plaintiff’s employment was principally based.  This provision does not relieve any claimant from any obligation existing under the Plan or by law to exhaust administrative remedies before initiating litigation.
E.    Notwithstanding the foregoing, this Section IV.6 (statute of limitations and forum selection) shall not apply with respect to claims related to a Qualifying CIC Termination.
		
	V.
	MISCELLANEOUS

1.    Plan Administration.  The Plan Administrator has full discretionary authority to administer and interpret the Plan, including discretionary authority to determine eligibility for benefits under the Plan and the amount of benefits (if any) payable per Participant. Any determination by the Plan Administrator will be final and conclusive upon all persons.  Notwithstanding the Plan Administrator’s discretion, however, the standard of review for a court reviewing any claim related to a Qualifying CIC Termination shall be de novo.
2.    Benefits.  Benefits provided under the Plan are paid from the general assets of the Company and are not funded or assignable.

9

3.    Treatment of Plan Benefits. Payments made under this Plan shall not be treated as eligible “compensation” for purposes of any 401(k) or other retirement, savings or similar plan of the Company or a parent or subsidiary of the Company.  A Participant will also receive his or her unpaid salary through his or her termination date and a lump sum payment for all accrued and unused vacation (through the termination date) in a final paycheck provided on his or her last day of work.
4.    Indebtedness of Participants. If a Participant is indebted to the Company on the effective date of the Participant’s Separation, the Company reserves the right to offset the payment of any benefits under the Plan by the amount of such indebtedness. Such offset will be made in accordance with all applicable laws. The Participant’s execution of the Participation Notice constitutes knowing written consent to the foregoing.
5.    Plan Terms.  This Plan supersedes the Etsy, Inc. Severance Plan and Etsy, Inc. Change In Control Severance Plan, each of which expired in accordance with its terms, and any and all prior separation, severance and salary continuation arrangements, programs and plans that were previously offered by the Company, either orally or in writing, for which a Participant was eligible.  In no event shall a Participant receive severance benefits under both this Plan and another plan, program or arrangement.  
6.    Plan Amendment or Termination.  The Company, acting through its Board or its Compensation Committee, reserves the right to terminate or amend the Plan at any time and in any manner, subject to this Section V.6.  Any termination or amendment of the Plan may be made effective immediately with respect to any benefits not yet paid, whether or not prior notice of such amendment or termination has been given to affected employees; however, no termination or amendment that negatively impacts the rights or potential benefits of a Participant shall (i) apply with respect to any Participant who experiences a Qualifying Termination before or within two months after the effective date of such termination or amendment, or (ii) become effective within the three months before or 12 months after a Change in Control.
7.    Taxes. All payments and benefits under the Plan will be subject to all applicable deductions and withholdings, including obligations to withhold for federal, state, provincial, foreign and local income and employment taxes.  By becoming a Participant in the Plan, the Participant agrees to review with Participant’s own tax advisors the federal, state, provincial, local, and foreign tax consequences of participation in the Plan. The Participant will rely solely on such advisors and not on any statements or representations of the Company or any of its agents. The Participant understands that the Participant (and not the Company) will be responsible for the Participant’s own tax liability that may arise as a result of becoming a Participant in the Plan, without regard to the amount withheld or reported to the Internal Revenue Service.
8.    No Right to Employment.  This Plan does not provide any Participant or other individual a right to continue employment with the Company (or any parent or subsidiary) or affect the Company’s right (or the right of any parent or subsidiary employing a Participant), which right is hereby expressly reserved, to terminate the employment of any individual at any time for any reason with or without cause. 

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VI.    Definitions and Rules of Construction
1.    Definitions
Acceleration Factor shall mean the Acceleration Factor set forth in a Participant’s Participation Notice.
Cause shall mean a Participant’s (i) unauthorized use or disclosure of the Company’s confidential information or trade secrets, (ii) breach of any material terms of any material agreement between the Participant and the Company, (iii) material failure to comply with the Company’s written policies or rules, (iv) conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State, or any crime involving dishonesty, fraud or moral turpitude, (v) gross negligence or willful misconduct in the scope of the Participant’s employment, (vi) continuing failure to perform assigned duties after receiving written notification of the failure from the Company’s Board of Directors or (vii) failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested the Participant’s cooperation. 
Change in Control shall mean:
(i)    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities; 
(ii)    The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; 
(iii)    The consummation of a merger or consolidation of the Company with or into any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or
(iv)    Individuals who are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board over a period of 12 months; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

11

A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or 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.
Claims Administrator shall mean an individual or committee designated by the Plan Administrator.
COBRA Period shall mean the COBRA Period set forth in a Participant’s Participation Notice.
Code shall mean the Internal Revenue Code of 1986, as amended.
Company shall mean Etsy, Inc., a Delaware corporation, and any successor thereto.
Company Property shall mean all material paper and electronic Company documents (and all copies, reproductions or summaries thereof) created and/or received by the Participant during the Participant’s period of employment with the Company and other material Company materials and property (including Company laptop computers and mobile devices), that the Participant has in the Participant’s possession or control, including materials of any kind that contain or embody any proprietary or confidential information of the Company (and all copies, reproductions or summaries thereof, in whole or in part).  For the avoidance of doubt, Company Property does not include the Participant’s personal copies of documents evidencing the Participant’s hire, termination, compensation, benefits and stock options and any other documentation received as a stockholder of the Company.
ERISA means the Employee Retirement Income Security Act of 1974, as amended.
Monthly Base Salary shall mean the Participant’s monthly base salary at the rate in effect immediately before the date of the Participant’s Qualifying Termination; provided that, in the case of a Qualifying CIC Termination occurring after a Change in Control, the rate of Monthly Base Salary shall be no less than the rate in effect immediately before the Change in Control.  For the avoidance of doubt, Monthly Base Salary does not include other elements of compensation, such as bonuses, overtime compensation, incentive pay, sales commissions or expense allowances.
Plan Administrator shall mean the individual(s) appointed by the Board (or Committee) to administer the terms of the Plan as set forth herein.  If no individual is appointed to serve as the Plan Administrator, the Plan Administrator shall be the senior-most human resources employee of the Company.  Notwithstanding the preceding sentence, in the event the Plan Administrator is entitled to benefits under the Plan (or makes a claim for benefits under the Plan), the Board or its delegate shall act as the Plan Administrator for purposes of administering the terms of the Plan with respect to the Plan Administrator.  The Plan Administrator may delegate all or any portion of its authority under the Plan to any other person(s).
Qualifying Termination shall mean:
(i)    A Separation on account of involuntary dismissal or discharge initiated by the Company (or parent or subsidiary employing the Participant), or 

12

(ii)    For a Participant who is a Senior Vice President of the Company or above, the Participant’s voluntary resignation following: (a) a material diminution in the Participant’s authority, duties or responsibilities, (b) a material reduction in the Participant’s base compensation (other than as part of a broad-based company reduction program prior to a Change in Control), (c) a material change in the geographic location at which the Participant must perform services for the Company or (d) any other action or inaction that constitutes a material breach by the Company (or parent or subsidiary employing the Participant) of a material term of the employment agreement or offer letter under which the Participant provides services (if any).  For a Participant to receive the benefits under this Plan as a result of a voluntary resignation under this paragraph (ii), all of the following requirements must be satisfied:  (1) the Participant must provide notice to the Company of his or her intent to assert a Qualifying Termination under this paragraph (ii) within 90 days of the initial existence of one or more of the conditions set forth in this paragraph (ii); (2) the Company (or parent or subsidiary employing the Participant) will have 30 days from the date of such notice to remedy the condition and, if it does so, the Participant may withdraw his or her resignation or may resign with no Plan benefits; and (3) any termination of employment under this paragraph (ii) must occur within 125 days after the initial existence of one or more of the condition(s).  Should the Company (or parent or subsidiary employing the Participant) remedy the condition as set forth in this paragraph (ii) and then one or more of the conditions arises again, the Participant may assert this paragraph (ii) again, subject to all of the conditions set forth herein.
For the avoidance of doubt, a Separation on account of death or disability shall not be treated as an involuntary dismissal or discharge.  In addition, Separation on account of a sale of assets, merger, liquidation, reorganization, transfer of business to a third party, disposition, or similar transaction will not be a Qualifying Termination, provided that the Participant is offered continued employment with a successor employer under terms that are materially comparable in the aggregate to the terms in effect immediately before such transaction. 
Qualifying CIC Termination shall mean a Qualifying Termination within three months before and 12 months after a Change in Control.
Separation shall mean a “separation from service” as defined in the regulations under Section 409A of the Code.  
Severance Period shall mean the severance period set forth in a Participant’s Participation Notice. 
2.    Rules of Construction
A.    The use of the masculine gender shall also include within its meaning the feminine and vice versa.

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B.    The use of the singular shall also include within its meaning the plural and vice versa.
C.    The word “include” shall mean to include, but not to be limited to.
D.    Any reference to a stature or section of a statute shall further be a reference to any successor or amended statute or section, and any regulations or other guidance of general applicability issued thereunder.

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ETSY, INC.
EXECUTIVE SEVERANCE PLAN
PARTICIPATION NOTICE
To: _______________________
Date: _____________________
You have been designated as eligible to participate in the Etsy, Inc. Executive Severance Plan (the “Plan”). A copy of the Plan document is attached to this Participation Notice. The terms and conditions of your participation in the Plan are as set forth in the Plan document and this Participation Notice. 
Severance Period:    _____ months if not a Qualifying CIC Termination
_____ months for Qualifying CIC Termination 
COBRA Period:     _____ months
Acceleration Factor:     _____%
Please return to the Company a copy of this Participation Notice signed by you and retain a copy of this Participation Notice, along with the Plan document and related materials, for your records. 
I acknowledge and agree that the Severance Plan and benefits provided thereunder pursuant to this Participation Notice supersede any and all prior separation, severance and salary continuation arrangements, programs and plans that were previously offered to me by the Company, either orally or in writing.
	
		
	

_______________________________
 
Signature
_______________________________
 
Print Name
	

_______________________________
 
Date

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