PROPOSAL3:VOTETOAPPROVEPAYPALHOLDINGS,INC.2015EQUITYINCENTIVEAWARDPLAN,ASAMENDEDANDRESTATED Increasing the NumberofSharesReservedforIssuanceundertheEquityPlan Transferability of Awards AwardsgrantedundertheEquityPlangenerallyarenottransferable,andallrightswithrespecttoanawardgrantedtoa participantgenerallywill be available during a participantslifetime only to the participant(or the participantsguardian or legal representative). ChangeinControl A“changeincontrol”generallymeansatransactioninwhichanypersonorgroupacquiresmorethan50%ofourvoting securities, a change in a majority of the Board over a two-year period that is not approved by at least two-thirds of the incumbentBoardmembers,asaleorotherdispositionofallorsubstantiallyallofourassets,amergerorconsolidationin whichwearenotthesurvivingcorporationorareversemergerinwhichwearethesurvivingcorporationbutthesharesof ourstockoutstandingimmediatelyprecedingthemergerareconvertedbyvirtueofthemergerintootherpropertyorthe CompanysstockholdersapprovalofaliquidationordissolutionoftheCompany. Outstandingawardsdonotautomaticallyterminateintheeventofachangeincontrol.Intheeventofachangeincontrol, anysurvivingcorporationoracquiringcorporationmusteitherassumeorcontinueoutstandingawardsorsubstitutesimilar awards.Otherwise,thevestingofsuchawards(and,ifapplicable,thetimeduringwhichsuchawardsmaybeexercised) will be acceleratedin full and all forfeiture restrictions on such awards will lapse. The unexercised portion of all outstanding awardsmayterminateuponthechangeincontrol. If a change in control occurs during a performanceperiodwith respectto an outstandingawardthat vestsbasedon performancegoalsorotherperformance-basedobjectives,theperformanceperiodoftheawardwillendasofthedateof thechangeincontrolandtheperformancegoalswillbedeemedtohavebeensatisfiedattheactuallevelofperformance asofthedateofthechangeincontrol,asdeterminedbytheCompensationCommitteeasconstitutedimmediatelypriorto thechangeincontrol,withoutproration,andsuchaward,totheextentdeemedearnedbytheCompensationCommittee, will continue to be subject to time-basedvesting following the change in control in accordancewith the original vesting schedule;provided,however,thatiftheawardsarenotconverted,assumedorreplacedbyasuccessorentity,then immediatelypriortothechangeincontrol,suchawardwillbecomefullyvested,asdescribedintheparagraphabove. TerminationorAmendment TheEquityPlanwillautomaticallyterminatetenyearsfromthemostrecentapprovaloftheEquityPlanbytheCompanys stockholders,unlessterminatedatanearliertimebytheAdministrator.TheAdministratormayterminateoramendthe Equity Plan at any time, subject to stockholder approval for any amendment(i) to the extent necessaryand desirableto complywithanyapplicablelaw,regulation,orstockexchangerule,(ii)toincreasethenumberofsharesavailableunderthe Equity Plan, (iii) to permit the Compensation Committee or the Board to grant options with a price below fair market value onthedateofgrantor(iv)toextendtheexerciseperiodforanoptionorstockappreciationrightbeyondtenyearsfromthe dateofgrant.NoterminationoramendmentoftheEquityPlanmayadverselyaffectinanymaterialrespectanyAward previouslygrantedpursuanttotheEquityPlanwithoutthepriorwrittenconsentoftheparticipant. SummaryofU.S.FederalIncomeTaxConsequences Thefollowingisageneralsummaryundercurrentlawofthematerialfederalincometaxconsequencestoparticipantsin theEquityPlanunderU.S.law.Thissummarydealswiththegeneraltaxprinciplesthatapplyandisprovidedonlyfor generalinformation.Certaintypesof taxes,suchasstateandlocalincometaxesandtaxesimposedbyjurisdictions outsidetheU.S.,arenotdiscussed.Taxlawsarecomplexandsubjecttochangeandmayvarydependingonindividual circumstancesandfromlocalitytolocality.Thesummarydoesnotdiscussallaspectsofincometaxationthatmaybe relevant to a participant in light of his or her personal investment circumstances.This summarized tax information is not tax advice. Section162(m)oftheCode Section162(m)oftheCodegenerallylimitsto$1milliontheamountthatapubliclyheldcorporationisallowedeachyearto deductforthecompensationpaidtothecorporationschiefexecutiveofficer,chieffinancialofficerandcertainofthe corporationscurrentandformerexecutiveofficers. StockOptions Aparticipantwill not recognizetaxableincomeatthetimeanoptionisgrantedandtheCompany(or,ifapplicable,the employersubsidiary)will not be entitledto a tax deductionat that time. A participantwill recognize compensationtaxable 92 •2023ProxyStatement