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<div><a name="sC0B2B5502DA0AF70BDF8D49CF6D6D3C2"></a></div><div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;padding-top:5px;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">UNITED STATES</font></div><div style="line-height:120%;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></div><div style="line-height:120%;padding-top:10px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Washington, D.C. 20549</font></div><div style="line-height:120%;padding-bottom:2px;text-align:center;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;padding-bottom:2px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_____________________________________</font></div><div style="line-height:120%;padding-top:8px;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">FORM 8-K</font></div><div style="line-height:120%;padding-bottom:2px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_____________________________________</font></div><div style="line-height:120%;padding-bottom:2px;text-align:center;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;padding-top:9px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">CURRENT REPORT</font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Pursuant to Section 13 or 15(d) of</font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">the Securities Exchange Act of 1934</font></div><div style="line-height:120%;padding-top:17px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Date of Report (Date of earliest event reported):  April 30, 2017</font></div><div style="line-height:120%;padding-top:9px;text-align:center;font-size:24pt;"><font style="font-family:inherit;font-size:24pt;font-weight:bold;">Etsy, Inc.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(Exact name of registrant as specified in its charter)</font></div><div style="line-height:120%;padding-bottom:2px;text-align:center;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;padding-bottom:2px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_____________________________________</font></div><div style="line-height:120%;text-align:left;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:84.1796875%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td style="width:20%;"></td><td style="width:20%;"></td><td style="width:20%;"></td><td style="width:20%;"></td><td style="width:20%;"></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Delaware</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">001-36911</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">20-4898921</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(State or other jurisdiction</font></div><div style="padding-bottom:1px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">of incorporation)</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(Commission</font></div><div style="padding-bottom:1px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">File Number)</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(IRS Employer</font></div><div style="padding-bottom:1px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Identification No.)</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:17px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">117 Adams Street</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Brooklyn, New York 11201</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(Address of principal executive offices, including zip code)</font></div><div style="line-height:120%;padding-top:17px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(718) 880-3660</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(Registrant's telephone number, including area code)</font></div><div style="line-height:120%;padding-top:17px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">N/A</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(Former name or former address, if changed since last report)</font></div><div style="line-height:120%;padding-bottom:2px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">_____________________________________</font></div><div style="line-height:120%;padding-top:17px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></div><div style="line-height:120%;text-align:left;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o  </font><font style="font-family:inherit;font-size:10pt;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div><div style="line-height:120%;text-align:left;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o  </font><font style="font-family:inherit;font-size:10pt;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div><div style="line-height:120%;text-align:left;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o  </font><font style="font-family:inherit;font-size:10pt;">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div><div style="line-height:120%;text-align:left;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o  </font><font style="font-family:inherit;font-size:10pt;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div><div style="line-height:120%;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter). </font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Emerging growth company            </font><font style="font-family:Wingdings;font-size:10pt;">o</font><font style="font-family:inherit;font-size:10pt;">&#32;</font></div><div style="line-height:120%;font-size:6pt;"><font style="font-family:inherit;font-size:6pt;"><br></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  </font><font style="font-family:Wingdings;font-size:10pt;">o</font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div><br></div><div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">INFORMATION TO BE INCLUDED IN THE REPORT</font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Appointment of New President and Chief Executive Officer</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 30, 2017, the board of directors (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Board</font><font style="font-family:inherit;font-size:10pt;">&#8221;) of Etsy, Inc. (&#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Etsy</font><font style="font-family:inherit;font-size:10pt;">&#8221;) appointed Josh Silverman, a director on the Board since November 2016, as Etsy&#8217;s President and Chief Executive Officer, effective May 3, 2017.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From January 2017 until recently, Mr. Silverman, 48, served as Senior Operating Advisor at Hellman &amp; Friedman, a private equity investment firm. In 2016, Mr. Silverman served as Executive in Residence at Greylock Partners, a venture capital firm. Prior to that, Mr. Silverman served as President of Consumer Products and Services at American Express from June 2011 to December 2015. Before joining American Express, he was the CEO of Skype from February 2008 to September 2010. Mr. Silverman served as CEO of Shopping.com, an eBay company, from July 2006 to February 2008 and, prior to that, in various executive roles at eBay. Mr. Silverman was also co-founder and CEO of Evite, Inc. He currently serves on the board of directors of Shake Shack. </font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In connection with Mr. Silverman&#8217;s appointment, Etsy and Mr. Silverman entered into an offer letter on May 2, 2017 (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Silverman Offer Letter</font><font style="font-family:inherit;font-size:10pt;">&#8221;), which provides for the following compensation and benefits:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(i)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an annual base salary of $375,000; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(ii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">eligibility to participate in Etsy&#8217;s management cash incentive plan with a target bonus of 100% of base salary;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(iii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an award under Etsy&#8217;s 2015 Equity Incentive Plan (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">2015 Plan</font><font style="font-family:inherit;font-size:10pt;">&#8221;) of 250,000 restricted stock units (&#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">RSUs</font><font style="font-family:inherit;font-size:10pt;">&#8221;) granted on May 4, 2017, which will fully vest on the earlier of: (1) May 3, 2018; or (2) a &#8220;Change in Control&#8221; (as defined in the Etsy, Inc. Change in Control Severance Plan (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">CIC Severance Plan</font><font style="font-family:inherit;font-size:10pt;">&#8221;)); in each case subject to continued employment;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(iv)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a grant under the Plan of options (&#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Stock Options</font><font style="font-family:inherit;font-size:10pt;">&#8221;) to purchase 3,869,969 shares of Etsy common stock on the date of grant (May 4, 2017) at a price per share of $10.62, which will vest: (1) 25% on the first anniversary of the date of grant, with the remaining 75% of the grant to vest in equal monthly installments over the following 36 months or (2) 25% upon a &#8220;Change in Control&#8221; (as defined in the CIC Severance Plan); in each case subject to continued employment; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(v)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">eligibility to participate in the CIC Severance Plan, which, subject to the terms and conditions therein, provides for 18 months of severance pay, up to 18 months of COBRA coverage, and 100% acceleration of all outstanding equity awards; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(vi)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">eligibility to participate in the Etsy, Inc. Severance Plan (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Etsy Severance Plan</font><font style="font-family:inherit;font-size:10pt;">&#8221;) which, subject to the terms and conditions therein, provides for 12 months of severance pay and up to 12 months of COBRA coverage;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(vii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Mr. Silverman will not be eligible for grants of future equity awards for the next four years. In addition, in connection with his transition from an independent director to an employee director, Mr. Silverman has forfeited his unvested non-employee director equity awards;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(viii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">for purposes of</font><font style="font-family:Calibri,sans-serif;font-size:10pt;">&#32;</font><font style="font-family:inherit;font-size:10pt;">Mr. Silverman&#8217;s participation in the CIC Severance Plan and the Etsy Severance Plan: </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:72px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">the definition of &#8220;Cause&#8221; is amended, such that, in the case of clauses (b),(c) and (f) thereof, Etsy has agreed to give notice of the circumstances constituting Cause, and Mr. Silverman shall have the opportunity to cure such circumstances (if curable) within ten (10) business days following his receipt of such notice; and </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:72px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">the hiring of an Executive Chairman would be a material breach of a material agreement between Mr. Silverman and Etsy pursuant to clause (d) of the definition of &#8220;Qualifying Termination&#8221;;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(ix)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">outside the context of a change in control: </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:72px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">If Mr. Silverman&#8217;s employment is terminated in a &#8220;Qualifying Termination&#8221; (as defined in the Etsy Severance Plan, as modified by the Silverman Offer Letter), 25% of his Stock Options will immediately vest; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:72px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">If Mr. Silverman&#8217;s employment is terminated other than for &#8220;Cause&#8221; (as defined in the Etsy Severance Plan, as modified by the Silverman Offer Letter), Mr. Silverman&#8217;s vested Stock Options will remain exercisable until the earlier of: (x) six months after his last day of employment; or (y) ten years after such Stock Options were granted; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(x)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Etsy will reimburse Mr. Silverman for up to $10,000 in legal fees incurred by Mr. Silverman in connection with the employment offer.</font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:72px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div><br></div><div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;padding-bottom:32px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">This description of the Silverman Offer Letter is qualified in its entirety by reference to the full text of the Silverman Offer Letter, which will be filed as an exhibit to Etsy&#8217;s next quarterly report on Form 10-Q.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Departure of President and Chief Executive Officer</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Mr. Silverman succeeds Chad Dickerson, who resigned from his positions as President, Chief Executive Officer and Chair, effective May 3, 2017. Mr. Dickerson will serve in an advisory role through May 31, 2017 (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Dickerson Departure Date</font><font style="font-family:inherit;font-size:10pt;">&#8221;). </font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 2, 2017, Mr. Dickerson and Etsy entered into a letter agreement (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Dickerson Letter Agreement</font><font style="font-family:inherit;font-size:10pt;">&#8221;) governing the terms of his departure. The Dickerson Letter Agreement provides for the following compensation and benefits: </font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(i)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">continuation of Mr. Dickerson&#8217;s current base salary of $375,000 for 12 months after the Dickerson Departure Date;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(ii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a one-time lump sum payment of $156,250;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(iii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">reimbursement of the COBRA premiums for up to 12 months after the Dickerson Departure Date;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(iv)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">full acceleration on the Dickerson Departure Date of the vesting of the stock options previously awarded to Mr. Dickerson on January 30, 2015 and March 1, 2016;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(v)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">acceleration on the Dickerson Departure Date of the vesting of 50% of the RSUs awarded to Mr. Dickerson on March 15, 2017; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(vi)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an extension of the period for Mr. Dickerson to exercise his vested options until May 31, 2018;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(vii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">subject to the acceleration described above, any options and RSUs that are unvested as of the Dickerson Departure Date will be forfeited in accordance with the 2015 Plan (or predecessor equity plan) and the applicable award agreements;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(viii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a mutual release and waiver of claims between Etsy and Mr. Dickerson; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(ix)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Etsy will reimburse Mr. Dickerson for up to $15,000 in legal fees incurred by Mr. Dickerson in connection with the Dickerson Letter Agreement.</font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:72px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:32px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">This description of the Dickerson Letter Agreement is qualified in its entirety by reference to the full text of the Dickerson Letter Agreement, which will be filed as an exhibit to Etsy&#8217;s next quarterly report on Form 10-Q.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Departure of Chief Technology Officer</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition, on May 2, 2017, Etsy also announced that John Allspaw, Chief Technology Officer, will be departing from Etsy. Mr. Allspaw will serve in an advisory role through May 30, 2017 (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Allspaw Departure Date</font><font style="font-family:inherit;font-size:10pt;">&#8221;).</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 3, 2017, Mr. Allspaw and Etsy entered into a letter agreement (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Allspaw Letter Agreement</font><font style="font-family:inherit;font-size:10pt;">&#8221;) governing the terms of his departure. The Allspaw Letter Agreement provides for the following compensation and benefits: </font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(i)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">continuation of Mr. Allspaw&#8217;s current base salary of $325,000 for 12 months after the Allspaw Departure Date; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(ii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">reimbursement of the COBRA premiums for up to 12 months after the Allspaw Departure Date;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(iii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">full acceleration on the Allspaw Departure Date of the vesting of the stock options previously awarded to Mr. Allspaw in October 2013 and November 2015;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(iv)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">acceleration on the Allspaw Departure Date of the vesting of 100% of the RSUs awarded to Mr. Allspaw in November 2015 and 50% of the RSUs awarded to Mr. Allspaw in March 2017;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(v)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an extension of the period for Mr. Allspaw to exercise his vested options until May 30, 2018;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(vi)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">subject to the acceleration described above, any options and RSUs that are unvested as of the Allspaw Departure Date will be forfeited in accordance with the 2015 Plan (or predecessor equity plan) and the applicable award agreements;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(vii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a release and waiver of claims against Etsy by Mr. Allspaw; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">(viii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Etsy will reimburse Mr. Allspaw for up to $10,000 in legal fees incurred by Mr. Allspaw in connection with the Allspaw Letter Agreement.  </font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:72px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">This description of the Allspaw Letter Agreement is qualified in its entirety by reference to the full text of the Allspaw Letter Agreement, which will be filed as an exhibit to Etsy&#8217;s next quarterly report on Form 10-Q. </font></div><div><br></div><div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Amendment to Letter Agreement for Incoming Chief Financial Officer </font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 4, 2017, the letter agreement between Rachel Glaser and Etsy dated April 2, 2017 (the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Glaser Offer Letter</font><font style="font-family:inherit;font-size:10pt;">&#8221;) regarding her employment as Etsy's incoming Chief Financial Officer, was amended to provide for the following updated terms: </font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">(i)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a start date of May 16, 2017;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">(ii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an increase in base salary from $350,000 to $375,000;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">(iii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an increase in signing bonus from $100,000 to $250,000;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">(iv)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an increase in the grant date fair value of Ms. Glaser&#8217;s equity award from $1.6 million to $2.1 million; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">(v)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">an amended definition of &#8220;Good Reason&#8221; for resignation purposes, such that this term shall mean the occurrence of any one or more of the following events without Ms. Glaser&#8217;s prior written consent, unless Etsy fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction):</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:120px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:96px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a material reduction by Etsy of Ms. Glaser&#8217;s duties, responsibilities, authority, or reporting relationship, such that she no longer serves in a substantive, senior executive role for Etsy comparable in stature to Ms. Glaser&#8217;s then-current role, or she no longer reports to the Chief Executive Officer of Etsy or the Board (in the circumstance where Etsy does not have a Chief Executive Officer or acting Chief Executive Officer);</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:120px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:96px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a requirement that she reports to work at a Company location that is more than twenty (20) miles greater than the distance between the principal residence she establishes following Ms. Glaser&#8217;s relocation to New York City and Etsy&#8217;s current office location in Brooklyn, NY (provided that such change in distance is not the result of a change in Ms. Glaser&#8217;s principal residence);</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:120px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:96px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a material reduction in Ms. Glaser&#8217;s base salary; or</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:120px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:96px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">a material breach by Etsy of its obligations under the Glaser Offer Letter.</font></div></td></tr></table><div style="line-height:120%;text-align:left;padding-left:120px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">This description of the amendment to the Glaser Offer Letter is qualified in its entirety by reference to the full text of the Glaser Offer Letter, as amended. The amendment to the Glaser Offer Letter will be filed as an exhibit to Etsy&#8217;s next quarterly report on Form 10-Q.</font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div><br></div><div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">SIGNATURES</font></div><div style="line-height:144%;padding-top:17px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></div><div style="line-height:144%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:144%;text-align:left;text-indent:360px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;text-indent:360px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">ETSY, INC.</font></div><div style="line-height:144%;text-align:left;text-indent:360px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;text-indent:360px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">By: </font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">/s/ Jill Simeone</font></div><div style="line-height:144%;text-align:left;text-indent:360px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#32;&#32;&#32;&#32;&#32;&#32;&#32;Jill Simeone</font></div><div style="line-height:144%;text-align:left;text-indent:360px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#32;&#32;&#32;&#32;&#32;&#32;&#32;General Counsel and Secretary</font></div><div style="line-height:144%;padding-top:17px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Dated: May 4, 2017</font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;padding-top:17px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;padding-top:17px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div><br></div><div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div>	</body>
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Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
FORM 8-K
_____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  April 30, 2017
Etsy, Inc.
(Exact name of registrant as specified in its charter)
_____________________________________
Delaware
001-36911
20-4898921
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
117 Adams Street
Brooklyn, New York 11201
(Address of principal executive offices, including zip code)
(718) 880-3660
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
_____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of New President and Chief Executive Officer
On April 30, 2017, the board of directors (the "
Board
") of Etsy, Inc. ("
Etsy
") appointed Josh Silverman, a director on the Board since November 2016, as Etsy's President and Chief Executive Officer, effective May 3, 2017.
From January 2017 until recently, Mr. Silverman, 48, served as Senior Operating Advisor at Hellman & Friedman, a private equity investment firm. In 2016, Mr. Silverman served as Executive in Residence at Greylock Partners, a venture capital firm. Prior to that, Mr. Silverman served as President of Consumer Products and Services at American Express from June 2011 to December 2015. Before joining American Express, he was the CEO of Skype from February 2008 to September 2010. Mr. Silverman served as CEO of Shopping.com, an eBay company, from July 2006 to February 2008 and, prior to that, in various executive roles at eBay. Mr. Silverman was also co-founder and CEO of Evite, Inc. He currently serves on the board of directors of Shake Shack.
In connection with Mr. Silverman's appointment, Etsy and Mr. Silverman entered into an offer letter on May 2, 2017 (the "
Silverman Offer Letter
"), which provides for the following compensation and benefits:
(i)
an annual base salary of $375,000;
(ii)
eligibility to participate in Etsy's management cash incentive plan with a target bonus of 100% of base salary;
(iii)
an award under Etsy's 2015 Equity Incentive Plan (the "
2015 Plan
") of 250,000 restricted stock units ("
RSUs
") granted on May 4, 2017, which will fully vest on the earlier of: (1) May 3, 2018; or (2) a "Change in Control" (as defined in the Etsy, Inc. Change in Control Severance Plan (the "
CIC Severance Plan
")); in each case subject to continued employment;
(iv)
a grant under the Plan of options ("
Stock Options
") to purchase 3,869,969 shares of Etsy common stock on the date of grant (May 4, 2017) at a price per share of $10.62, which will vest: (1) 25% on the first anniversary of the date of grant, with the remaining 75% of the grant to vest in equal monthly installments over the following 36 months or (2) 25% upon a "Change in Control" (as defined in the CIC Severance Plan); in each case subject to continued employment;
(v)
eligibility to participate in the CIC Severance Plan, which, subject to the terms and conditions therein, provides for 18 months of severance pay, up to 18 months of COBRA coverage, and 100% acceleration of all outstanding equity awards;
(vi)
eligibility to participate in the Etsy, Inc. Severance Plan (the "
Etsy Severance Plan
") which, subject to the terms and conditions therein, provides for 12 months of severance pay and up to 12 months of COBRA coverage;
(vii)
Mr. Silverman will not be eligible for grants of future equity awards for the next four years. In addition, in connection with his transition from an independent director to an employee director, Mr. Silverman has forfeited his unvested non-employee director equity awards;
(viii)
for purposes of
Mr. Silverman's participation in the CIC Severance Plan and the Etsy Severance Plan:
•
the definition of "Cause" is amended, such that, in the case of clauses (b),(c) and (f) thereof, Etsy has agreed to give notice of the circumstances constituting Cause, and Mr. Silverman shall have the opportunity to cure such circumstances (if curable) within ten (10) business days following his receipt of such notice; and
•
the hiring of an Executive Chairman would be a material breach of a material agreement between Mr. Silverman and Etsy pursuant to clause (d) of the definition of "Qualifying Termination";
(ix)
outside the context of a change in control:
•
If Mr. Silverman's employment is terminated in a "Qualifying Termination" (as defined in the Etsy Severance Plan, as modified by the Silverman Offer Letter), 25% of his Stock Options will immediately vest; and
•
If Mr. Silverman's employment is terminated other than for "Cause" (as defined in the Etsy Severance Plan, as modified by the Silverman Offer Letter), Mr. Silverman's vested Stock Options will remain exercisable until the earlier of: (x) six months after his last day of employment; or (y) ten years after such Stock Options were granted; and
(x)
Etsy will reimburse Mr. Silverman for up to $10,000 in legal fees incurred by Mr. Silverman in connection with the employment offer.
This description of the Silverman Offer Letter is qualified in its entirety by reference to the full text of the Silverman Offer Letter, which will be filed as an exhibit to Etsy's next quarterly report on Form 10-Q.
Departure of President and Chief Executive Officer
Mr. Silverman succeeds Chad Dickerson, who resigned from his positions as President, Chief Executive Officer and Chair, effective May 3, 2017. Mr. Dickerson will serve in an advisory role through May 31, 2017 (the "
Dickerson Departure Date
").
On May 2, 2017, Mr. Dickerson and Etsy entered into a letter agreement (the "
Dickerson Letter Agreement
") governing the terms of his departure. The Dickerson Letter Agreement provides for the following compensation and benefits:
(i)
continuation of Mr. Dickerson's current base salary of $375,000 for 12 months after the Dickerson Departure Date;
(ii)
a one-time lump sum payment of $156,250;
(iii)
reimbursement of the COBRA premiums for up to 12 months after the Dickerson Departure Date;
(iv)
full acceleration on the Dickerson Departure Date of the vesting of the stock options previously awarded to Mr. Dickerson on January 30, 2015 and March 1, 2016;
(v)
acceleration on the Dickerson Departure Date of the vesting of 50% of the RSUs awarded to Mr. Dickerson on March 15, 2017;
(vi)
an extension of the period for Mr. Dickerson to exercise his vested options until May 31, 2018;
(vii)
subject to the acceleration described above, any options and RSUs that are unvested as of the Dickerson Departure Date will be forfeited in accordance with the 2015 Plan (or predecessor equity plan) and the applicable award agreements;
(viii)
a mutual release and waiver of claims between Etsy and Mr. Dickerson; and
(ix)
Etsy will reimburse Mr. Dickerson for up to $15,000 in legal fees incurred by Mr. Dickerson in connection with the Dickerson Letter Agreement.
This description of the Dickerson Letter Agreement is qualified in its entirety by reference to the full text of the Dickerson Letter Agreement, which will be filed as an exhibit to Etsy's next quarterly report on Form 10-Q.
Departure of Chief Technology Officer
In addition, on May 2, 2017, Etsy also announced that John Allspaw, Chief Technology Officer, will be departing from Etsy. Mr. Allspaw will serve in an advisory role through May 30, 2017 (the "
Allspaw Departure Date
").
On May 3, 2017, Mr. Allspaw and Etsy entered into a letter agreement (the "
Allspaw Letter Agreement
") governing the terms of his departure. The Allspaw Letter Agreement provides for the following compensation and benefits:
(i)
continuation of Mr. Allspaw's current base salary of $325,000 for 12 months after the Allspaw Departure Date;
(ii)
reimbursement of the COBRA premiums for up to 12 months after the Allspaw Departure Date;
(iii)
full acceleration on the Allspaw Departure Date of the vesting of the stock options previously awarded to Mr. Allspaw in October 2013 and November 2015;
(iv)
acceleration on the Allspaw Departure Date of the vesting of 100% of the RSUs awarded to Mr. Allspaw in November 2015 and 50% of the RSUs awarded to Mr. Allspaw in March 2017;
(v)
an extension of the period for Mr. Allspaw to exercise his vested options until May 30, 2018;
(vi)
subject to the acceleration described above, any options and RSUs that are unvested as of the Allspaw Departure Date will be forfeited in accordance with the 2015 Plan (or predecessor equity plan) and the applicable award agreements;
(vii)
a release and waiver of claims against Etsy by Mr. Allspaw; and
(viii)
Etsy will reimburse Mr. Allspaw for up to $10,000 in legal fees incurred by Mr. Allspaw in connection with the Allspaw Letter Agreement.
This description of the Allspaw Letter Agreement is qualified in its entirety by reference to the full text of the Allspaw Letter Agreement, which will be filed as an exhibit to Etsy's next quarterly report on Form 10-Q.
Amendment to Letter Agreement for Incoming Chief Financial Officer
On May 4, 2017, the letter agreement between Rachel Glaser and Etsy dated April 2, 2017 (the "
Glaser Offer Letter
") regarding her employment as Etsy's incoming Chief Financial Officer, was amended to provide for the following updated terms:
(i)
a start date of May 16, 2017;
(ii)
an increase in base salary from $350,000 to $375,000;
(iii)
an increase in signing bonus from $100,000 to $250,000;
(iv)
an increase in the grant date fair value of Ms. Glaser's equity award from $1.6 million to $2.1 million; and
(v)
an amended definition of "Good Reason" for resignation purposes, such that this term shall mean the occurrence of any one or more of the following events without Ms. Glaser's prior written consent, unless Etsy fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction):
•
a material reduction by Etsy of Ms. Glaser's duties, responsibilities, authority, or reporting relationship, such that she no longer serves in a substantive, senior executive role for Etsy comparable in stature to Ms. Glaser's then-current role, or she no longer reports to the Chief Executive Officer of Etsy or the Board (in the circumstance where Etsy does not have a Chief Executive Officer or acting Chief Executive Officer);
•
a requirement that she reports to work at a Company location that is more than twenty (20) miles greater than the distance between the principal residence she establishes following Ms. Glaser's relocation to New York City and Etsy's current office location in Brooklyn, NY (provided that such change in distance is not the result of a change in Ms. Glaser's principal residence);
•
a material reduction in Ms. Glaser's base salary; or
•
a material breach by Etsy of its obligations under the Glaser Offer Letter.
This description of the amendment to the Glaser Offer Letter is qualified in its entirety by reference to the full text of the Glaser Offer Letter, as amended. The amendment to the Glaser Offer Letter will be filed as an exhibit to Etsy's next quarterly report on Form 10-Q.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ETSY, INC.
By:
/s/ Jill Simeone
Jill Simeone
General Counsel and Secretary
Dated: May 4, 2017