PROPOSAL5:STOCKHOLDERPROPOSAL–PROVISIONOFSERVICESINCONFLICTZONES RESOLVED: ShareholdersrequestthattheBoardestablishapolicythatensuresthatpeopleinconflictzones,suchasinPalestine,do notsuffer discriminatoryexclusionfrom the companysfinancialservices,or alternatively,if the companychoosesnot to establishthis policy, provide an evaluation of the economic impact the policy of exclusion has on the affected populations aswellasthecompanysfinances,operationsandreputation. PRO XY S T A PayPalsStatementinOpposition TEMENT PAYPALSBOARDRECOMMENDSTHATSTOCKHOLDERSVOTEAGAINST THISPROPOSALFORTHEFOLLOWINGREASONS: ConsistentwithPayPalsmissiontodemocratizefinancialservices,ouraspirationisforeveryonetohaveaccesstoour services,subjectto our ability to properly meet customer needs, mitigate risk, address regulatory and compliance requirementsandoptimizeresourceallocation. Whileweofferservicesinmorethan200globalmarkets,thescopeofourproductofferingsdifferssignificantlyacross markets.In the majority of the markets in which we provide services,we enable consumersto buy from merchantsin other countries. In select markets we offer a broader suite of services, including domestic payment solutions. In evaluating opportunitiesfor new market entry, we balancethe potentialmarket opportunityand anticipatedcustomer demandagainstassociatedcosts,risks,regulatoryrequirements,requiredpartnerrelationshipsandthecompetitive landscape,amongotherfactors. PayPalremainscommittedtoexecutingagainstourstrategicprioritiesandroadmapandtoappropriatelyevaluating opportunitiesfor geographicexpansionandproductinnovationtoidentifythehighestimpactopportunitiesforour company.Wearecommittedtoconsistentlymaintainingthehigheststandardsofintegrityintheimplementationofour policies, proceduresandprocesses,includingwithrespecttotheevaluationofnewmarketentryopportunitiestodrive longtermvalue. *** TheBoardbelievesthattheCompanyhasalreadyadoptedandimplementedappropriatepoliciesandpracticesthat meaningfullyaddresstheconcernsraisedbytheproponentastheypertaintotheCompanysactivities.Accordingly,forthe reasonssetforthaboveandafterthoughtfulconsiderationoftheproposal,theBoardbelievesthatimplementationofthis proposalisnotinthebestinterestsofPayPalanditsstockholders. THEBOARDRECOMMENDSAVOTEAGAINSTSTOCKHOLDERPROPOSAL5. •2023ProxyStatement 99