PROPOSAL5:STOCKHOLDERPROPOSAL–PROVISIONOFSERVICESINCONFLICTZONES PROPOSAL5: StockholderProposal–ProvisionofServicesin Conflict Zones nd HarringtonInvestments,Inc.(“Harrington”),whoseaddressis10012 Street, Suite 325, Napa, CA 94559, has advisedthe CompanythatitintendstopresentthefollowingstockholderproposalattheAnnualMeeting.Harringtonhasindicatedthat it holds sufficient shares of PayPal common stock to meet the requirementsof Rule 14a-8. The stockholderproposalwill be votedonattheAnnualMeetingonlyifproperlypresentedbyoronbehalfoftheproponent. Thetextofthestockholderproposalandsupportingstatement(includingfootnotes)appearexactlyasreceivedbythe Companyunlessotherwisenoted.Allstatementscontainedinthestockholderproposalandsupportingstatementarethe sole responsibilityof the proponent.The stockholderproposalmay containassertionsabouttheCompanyorothermatters that we believeare incorrect,but we have not attemptedto refute all those assertions. THEBOARDRECOMMENDSAVOTEAGAINSTSTOCKHOLDERPROPOSAL5BASEDONTHEREASONS SETFORTHINPAYPALSSTATEMENTINOPPOSITIONFOLLOWINGTHESTOCKHOLDERPROPOSAL. Whereas: OurCompanysmissionstatementaffirms“Webelievethatfullparticipationintheglobaleconomyisaright,notaprivilege. 1 Elsewhereit reinforcesthe Wehaveanobligationtoempowerpeopletoexercisethisrightandimprovefinancialhealth.” notionthat“affordableandconvenientfinancialservicesshouldbearightforallratherthanaprivilegeforthefew.” OurCompanydescribes“WhoWeAre”bystating“Ourmissionistodemocratizefinancialservicestoensurethat everyone,regardlessofbackgroundoreconomicstanding,hasaccesstoaffordable,convenient,andsecureproductsand servicesto take control of their financial lives.” OurCompanystates“Weareavailableinmorethan200countries/regionssupporting25currencies.Sendandreceive 2 paymentseasilyoverbordersandlanguagebarriers.Werehereforyou,whereveryouare.” Thisincludesservicetoover 425millioncustomers,includingoperationsinhigh-conflictcountriessuchasYemenandSomaliaandheavily-sanctioned countriessuchasRussia. 3 In this context, we are troubled by years of reliable reports that individuals with Palestinian bank accounts cannot use PayPaltosendorreceivemoneywhileindividualslivinginasimilarlocationbutwithaccountsatotherbankshavefull accesstoPaypalservices. TheUSTreasurystatesthattransactionswithprivatePalestiniancompaniesandindividualsareauthorized,stating 4 “prohibitionsare not territorial in nature.” 5 Visa, Mastercard,andWesternUnionserviceshavebeenavailableforyearstothesecustomers andPalestinianbanksare 6 part of SWIFT, the global system for secure cross-borderpayments.In 2021, PayPalslargestcompetitor,ApplePay,started operatingin Palestine. Applyingarestrictionindiscriminatelyto all residentswith Palestinianbank accountslimits our companysability to expand 7 its business to more than two million potential customers, and impairs the developmentof businessopportunitiesfor the 8 local 150,000 small and mediumenterprises. This limits opportunitiesfor Palestiniansto accesslivelihoodand work opportunities. It also hinders economicdevelopmentinconflictwiththecompanysownCodeofBusinessConduct&Ethics,which states that the companyrespects“therightsenshrinedin theUniversalDeclarationof HumanRightsandwork[s]toalign 9 [its] efforts with the U.N. Guiding Principles on Business and Human Rights and other internationalstandards.” 1 https://s201.q4cdn.com/346340278/files/doc_downloads/2022/Code-of-Business-Conduct-Ethics-2022_External.pdf 2 https://www.paypal.com/webapps/mpp/country-worldwide?roistat_visit=285623 3 https://techcrunch.com/2016/09/09/paypal-brushes-off-request-from-palestinian-tech-firms-to-access-theplatform/https://www.reuters.com/world/middle-east/palestinians- urge-paypal-offer-services-west-bank-gaza-2021-10-21/ 4 https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/counter-terrorism-sanctions/palestinian-authority 5 https://www.reuters.com/world/middle-east/palestinians-urge-paypal-offer-services-west-bank-gaza-2021-10-21/ 6 https://www.bankofpalestine.com/en/personal/transfers/swift 7 https://thisweekinpalestine.com/the-banking-sector-in-palestinen 8 https://www.mdpi.com/2227-7099/10/10/247 9 PayPal, CodeofBusinessConduct&Ethics(2022)p.47. 98 •2023ProxyStatement