PROPOSAL7:STOCKHOLDERPROPOSAL–PAYPALTRANSPARENCYREPORTS PROPOSAL7: StockholderProposal–PayPalTransparencyReports TulipshareLtd. (“Tulipshare”) on behalf of Laurent Ritter has advised the Company that it intends to present the following stockholderproposalattheAnnualMeeting.TulipsharehasindicatedthatMr.RitterholdssufficientsharesofPayPal commonstocktomeettherequirementsofRule14a-8.ThestockholderproposalwillbevotedonattheAnnualMeeting only if properly presentedby or on behalf of the proponent. 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. THEBOARDRECOMMENDSAVOTEAGAINSTSTOCKHOLDERPROPOSAL7BASEDONTHEREASONS SETFORTHINPAYPALSSTATEMENTINOPPOSITIONFOLLOWINGTHESTOCKHOLDERPROPOSAL. 1 In June 2021, the AmericanCivil LibertiesUnion launcheda campaign callingon PayPalto providenondiscriminatory financial services to all users. ACLU argued that accountabilityon human rights, civil liberties, and sound technology policy necessitatesthat PayPalprovidetransparencytousers.If PayPaldecidestocloseanindividualorbusinessaccount,PayPal mustprovidemeaningfulnoticeabouttheparticularTermsofServicesprovisionthatwasviolated,andusersshouldhave theopportunitytoappealinatimelyandefficientmanner. 2 In addition to blocking the accounts of sex workers, PayPal routinely targets users for speech protectedby the First 3 Amendment including: 4 • Freezingtheaccount ofNewsMediaCanadaforapaymenttosubmitanarticleaboutSyrianrefugeesforanaward; 5 • Terminatingservice to a user for using open-sourcesoftwareenablinganonymouscommunication; 6 • Stalling efforts to provide bail support to protestors; 7 • Banninglegalsexworkersaccesstoservices,whichdisproportionatelyharmsBlack,Brownandtranscommunities. 8 AsElectronicFrontierFoundationnotes, becauseafewcompaniesdominateonlinepaymentprocessing,PayPalwields tremendouspowertocontrolthespeechenvironmentbyturningoffthefinancialfaucetforuserswhoexpressdisfavored viewsordiscusscontroversialsubjectmatter.MerchantsandindividualsonPayPalsblacklistmayfindthemselvesina financially precarious situation since payment platforms are extremely centralized,creating what in practiceis a duopoly. AnyargumentthatthosedissatisfiedwithPayPalstermsandconditionsshouldsimplyseekotherpaymentmethodsisnot particularly realistic. PayPals2021GlobalImpactReporttoutsitscommitmentto“[b]uildingadigitaleconomythatpowersamoreinclusiveand resilient world,” and yet that report fails to include any information relevant to account suspensions or actions that may chill 9 free speech. PayPalspoortransparencyreportingveilsthecontradictionbetweenPayPalshumanrightspolicyandaccount suspensionsandotherpotentialviolationsoffreedomofspeech.Thisposessignificantlegal,reputational,andfinancialrisk to PayPal and its shareholders. RESOLVED:ShareholdersrequesttheBoardrevisePayPalsTransparencyReportstoprovideclearexplanationsofthe numberandcategoriesofaccountsuspensionsandclosuresthatmayreasonablybeexpectedtolimitfreedomof expressionoraccesstoinformationorfinancialservices.Suchrevisionmayexcludeproprietaryorlegallyprivileged information. 1 https://www.aclu.org/news/lgbtq-rights/paypal-and-venmo-are-shutting-out-sex- workers-putting-lives-and-livelihoods-at-risk 2 https://www.bloomberg.com/news/articles/2019-11-14/porn-site-says-paypal-ban-will-hurt- more-than-100-000-performers 3 https://www.thefire.org/research-learn/fire-statement-free-speech-and-online-payment- processors 4 https://www.cbc.ca/news/canada/manitoba/paypal-freezes-flin-flon-newspaper-syrian-refugees-1.3977292 5 https://www.eff.org/deeplinks/2021/06/paypal-shuts-down-long-time-tor-supporter-no-recourse 6 https://www.vice.com/en/article/k7qbnz/venmo-paypal-freeze-transfer-limits-bail-funds 7 https://www.aclu.org/news/lgbtq-rights/sex-work-is-real-work-and-its-time-to-treat-it-that-way/ 8 https://www.eff.org/deeplinks/2016/02/kafkaesque-battle-soulseek-and-paypal-and-why-free-speech-defenders-should-be 9 https://s201.q4cdn.com/346340278/files/doc_downloads/PayPal-2021-Global-Impact-Report.pdf 102 •2023ProxyStatement