PAYPALHOLDINGS,INC.2015EQUITYINCENTIVEAWARDPLAN(MARKED) unbrokenchainbeneficiallyownssecuritiesorinterestsrepresentingmorethanfiftypercent(50%)ofthetotalcombined voting powerofall classesof securitiesor interestsin one of the other entities in such chain. 2.42 “Substitute Award” shall mean an Option or SAR grantedunder the Plan upon the assumptionof, or in substitutionfor, outstandingequityawardspreviouslygrantedbyacompanyorotherentityinconnectionwithacorporatetransaction, suchasamerger,combination,consolidationoracquisitionofpropertyorstock;provided,however,thatinnoeventshall theterm“SubstituteAward”beconstruedtorefertoanawardmadeinconnectionwiththecancellationandrepricingofan Option. 2.43 “Terminationof Service”shall mean, (a) As to a Consultant, the time when the engagementof a Participantas a Consultantto the Companyor a Subsidiary is terminatedfor any reason, with or without cause, including, without limitation, by resignation, discharge, death or retirement,but excludinga terminationwherethereisasimultaneouscommencementofemploymentwiththe CompanyoranySubsidiary. (b) As to a Non-EmployeeDirectoror IndependentDirector,thetimewhenaParticipantwhoisaNon-Employee Director or IndependentDirectorceasestobeaDirectorforanyreason,including,withoutlimitation,aterminationby resignation,failure to be elected, death or retirement, but excluding: (i) a termination where there is simultaneous employmentbytheCompanyoraSubsidiaryofsuchpersonand(ii)aterminationwhichisfollowedbythe simultaneousestablishmentofaconsultingrelationshipbytheCompanyoraSubsidiarywithsuchperson. (c) As to an Employee,the time whentheParticipanthasceasedtoactivelybeemployedbyortoprovideservicesto theCompanyoranySubsidiaryforanyreason,withoutlimitation,includingresignation,discharge,death,disabilityor retirement;but excluding:(i) a termination where there is a simultaneous reemploymentor continuingemploymentof a Participantby the CompanyoranySubsidiary,(ii) a terminationwhichis followedbythesimultaneousestablishmentof aconsultingrelationshipbytheCompanyoraSubsidiarywiththeformeremployee,and(iii)aterminationwherea ParticipantsimultaneouslybecomesanIndependentDirector. (d) The Committee,in its absolute discretion,shall determinethe effect of all matters and questions relating to TerminationofService,including,withoutlimitation,questionsrelatingto the natureand typeof Terminationof Service, andallquestionsofwhetherparticularleavesofabsenceconstituteTerminationofService;provided,however,that, with respectto IncentiveStockOptions,unlesstheCommitteeotherwiseprovidesinthetermsoftheAward Agreement,aleaveofabsence,changeinstatusfromanemployeetoanindependentcontractororotherchangein theemployee-employerrelationshipshallconstituteaTerminationofServiceif,andtotheextentthat,suchleaveof absence,changeinstatusorotherchangeinterruptsemploymentforthepurposesofSection422(a)(2)oftheCode andthethenapplicableregulationsandrevenuerulingsundersaidSection.ForpurposesofthePlan,aParticipantshall bedeemedtohaveaTerminationofServiceintheeventthattheSubsidiaryemployingorcontractingwithsuch ParticipantceasestoremainaSubsidiaryfollowinganymerger,saleofstockorothercorporatetransactionorevent (including, without limitation, a spin-off). ARTICLE3 SharesSubjecttothePlan 3.1 NumberofShares. (a) Subject to Article 11 and Section 3.1(b), the aggregate number of shares of Stock which may be issued or transferred pursuanttoAwardsgrantedunderthePlanis145,000179,600,000whichincludestheaggregatenumberofsharesof StocksubjecttoallAssumedSpin-OffAwards.AnysharesofStockthataresubjecttoAwardsgrantedunderthePlan onorafterthe2016annualmeetingoftheCompanysstockholders(the“2016AnnualMeeting”)otherthanFullValue Awardsshallbecountedagainstthislimitas0.50sharesforeveryshareofStocksubjecttotheAwardgranted.Any sharesofStockthataresubjecttoFullValueAwardsgrantedunderthePlanshallbecountedagainstthislimitasone (1) share for every share of Stock subject to the Award granted. (b) To the extent that an Award terminates,expires, or lapses for any reason, or such an Award is settled in cash without delivery of shares to the Participant, then any shares of Stock subject to the Award shall again be available for the grant of an AwardpursuanttothePlan.AnysuchsharesofStockthatceasetobesubjecttosuchanAwardotherthanaFull ValueAwardshallbeaddedtothenumberofsharesavailableunderthePlanasthenumberofsharesofStock(or portion thereof) deemedsubjecttosuchAwardunderSection3.1(a)asofthedateofgrantforeveryshareofStockthat ceasestobesubjecttosuchAward.AnysuchsharesofStockthatceasetobesubjecttoaFullValueAwardshallbe addedtothenumberofsharesavailableunderthePlanasone(1)shareforeveryshareofStockthatceasestobe subjecttosuchAward.NotwithstandinganythinginthisSection3.1(b)tothecontrary,sharesofStocksubjecttoan AwardmaynotagainbemadeavailableforissuanceunderthisPlanifsuchsharesare:(x)sharesdeliveredtoor withheldbytheCompanytopaytheexercisepriceofanOptionorSAR,(y)sharesdeliveredtoorwithheldbythe 124 •2023ProxyStatement