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EXHIBIT 10.105    
  

	 	 	Securities Pool Contract
	

Borrower:	
 	

Southwall Europe GmbH

01897 Großröhrsdorf
	

 	
 	

-hereinafter called the "firm"-
	

Party providing security:	
 	

1. Southwall Europe GmbH

01897 Großröhrsdorf
	

 	
 	

2. Southwall Technologies Inc., Palo Alto, USA
	

 	
 	

-hereinafter altogether called "the third parties providing security" and each of them called "one third party providing security"
	

Credit institute:	
 	

1. Deutsche Bank AG

Filiale Dresden
	

 	
 	

-hereinafter also called "pool leader"
	

 	
 	

2. IKB Deutsche Industriebank AG
	

 	
 	

-hereinafter altogether called the "banks", each of them called the "bank" as a partnership under the Civil Code

Between
the firm, the third party providing security and the banks the following shall be agreed: 

§ 1  

 Credits  

	(1)
	The
banks have business connections with the firm and when this contract was concluded, they granted it the following credit lines: 

	Deutsche Bank AG

long-term loan	 	DM 6,000,000.00
	IKB Deutsche Industriebank AG

long-term loan	 	DM 7,500,000.00

	(2)
	As
far as stipulated by the credit agreement, the cash credits may also be made use of as a guaranty, discount, acceptance and Eurocredit. It is also possible to make use of the cash
line by Eurocredits in this way from the foreign banking subsidiaries. The agreements made between the banks concerning the pool securities shall also apply to the borrowing from foreign banking
subsidiaries provided that their rights and duties will be protected by the respective bank on a trust basis.

	(3)
	The
firm shall be entitled to make use of its credit line and credits independently. Each bank shall be entitled to its claims based on the credits promised by it, alone and directly. 

§ 2  

 Securities  

	(1)
	The
firm provided the following securities to the pool leader or will provide the mentioned securities immediately:

	1.
	first
land charge amounting to DM 7,470,000.00 including an annual interest rate of 15% and a non-recurrent collateral performance of 5% on the company premises in
Großröhrsdorf 

 

(Sachsen)
registered in the land register of Amtsgericht (Local Court) of Kamenz for Großröhrsdorf, sheet no. 2015 and 1758 

	2.
	secondary
land charge amounting to DM 6,030,000.00 including an annual interest rate of 15% and non-recurrent collateral performance of 5% on the company premises in
Großröhrsdorf (Sachsen) registered in the land register of Amtsgericht (Local Court) of Kamenz for Großröhrsdorf, sheet no. 2015 and 1758

	3.
	transfer
by way of security of the machinery and plants purchased by von Ardenne Anlagentechnik GmbH pursuant to the security agreement dated 

	(2)
	The
third party/ies providing security provided the following securities to the banks or will provide the mentioned securities immediately: 

Guaranty
amounting to DM 3,000,000.00 of Southwall Technologies Inc., Palo Alto, USA, dated 

	(3)
	In
favor of the pool leader and each individual bank the third party providing security will provide the following accessory securities on the basis of equal priority and at the same
time: 

not
applicable 

	(4)
	In
case one bank will obtain further securities from the firm for one of the credits or credit lines set forth in § 1 (1), they are included in the pool contract.

	(5)
	In
case one bank grants additional credits to the firm and obtains additional securities from it for them, they are included in the pool contract when they are given. The realization
proceeds shall be used, as a matter of priority, for the repayment of these additional credits.

	(6)
	The
firm shall undertake to provide securities to any third parties only after it has notified the banks of this. This does not apply to extended customary title retentions of
suppliers and the mortgage and security provided on the basis of the General Bank Conditions of the credit institutes. 

§ 3  

 Purpose of security  

	(1)
	The
securities included in this pool contract shall serve as collateral of all existing, future and contingent claims which the banks, including all their domestic and foreign branch
offices, on the basis of the respective bank business relations as well as the foreign banking subsidiaries on the basis of the granting of credits pursuant to § 1 (1, 2), are entitled to
claim from the firm.

	(2)
	In
case the borrower assumed the liability for the liabilities of another customer of the respective bank (for instance as a guarantor), the respective security will only secure the
debt resulting from the assumption of the liability from its due date on and only if the firm is also the party providing security at the same time. 

§ 4  

 Reassignment/release of securities  

	(1)
	After
all claims secured pursuant to § 3 were satisfied, the banks must reassign the securities included in this pool contract to the firm or the respective third party
providing security in case they did not make use of them. This does not apply if the banks are obligated to assign the securities or any possible surplus proceeds to a third party (such as a guarantor
who has satisfied one or several banks). 

2

 
	(2)
	When
requested the banks shall be obligated already before to release pool securities at their option fully or partially if and in so far as the realizable value of the pool
securities does not only exceed temporarily 

110% 

of
the claims pursuant to § 3. The realizable value of the securities shall be determined according to the regulations of the individual security agreements or, if no express agreement on
this was made, it results from the type of the respective security. 

	(3)
	The
stipulations included in the various security agreements concerning the limits for cover and release obligations shall be modified and amended by the aforementioned regulations
for the period of this pool contract. 

§ 5  

 Trust relation/securities administration  

	(1)
	The
pool leader shall hold the securities included in this contract in trust for the other banks on the basis of equal priority. The accessory rights (mortgages, guaranties) set forth
in § 2 (1) sentence 1 and § 2 (3) as pool securities shall be administrated and realized by the pool leader also on behalf of the other banks.

	(2)
	The
pool leader shall send to the other banks, on request, copies of the contracts of the securities held by it to enable them to check them on their own responsibility. Any
objections shall be raised by the other banks immediately against the pool leader in order to make it possible that a regulation by common consent amongst the banks will be reached.

	(3)
	The
banks shall authorize the pool leader to make and receive any statements required for the provision, administration and realization of the securities also on their behalf as well
as to take all required and useful actions. The pool leader shall be exempted from the limitations of § 181 Civil Code for all measures taken by it on the basis of this contract.

	(4)
	The
full or partial release of securities shall be subject to the consent of all banks. Within the framework of a release obligation pursuant to § 4 (2) this
consent shall only be required for the selection of the securities to be released.

	(5)
	The
pool leader will transfer the securities administration to another trustee only with the consent of the other banks. The respective trustee shall be exempted from the limitations
of § 181 Civil Code.

	(6)
	In
case any securities are held by a bank other than the pool leader, the aforementioned regulations shall apply analogously. In addition, the pool leader shall be entitled, however
not obligated to, to exercise all control and administration rights ensuing from the security contracts. 

§ 6  

 Realization  

	(1)
	The
pool leader shall realize the securities specified in § 2 on its own behalf, however, for the account of the banks. Unless securities are held by the pool leader,
these securities shall be realized, in consultation with the pool leader, by the respective holding bank for the account of the banks.

	(2)
	Concerning
the issue as to whether or when the securities shall be realized, the banks shall decide amongst themselves and by common consent. In urgent cases the pool leader shall
decide on it 

3

 

alone,
freely after a due assessment of the circumstances; in this case the pool leader shall immediately inform the other banks on the measures taken. 

	(3)
	The
pool leader and the banks shall consider the realization conditions included in the various security contracts. 

§ 7  

 Payment of the balance  

	(1)
	The
firm shall make use of the banks equally, if possible, at the ratio of the credit lines set forth in § 1 (1).

	(2)
	As
regards the case of the realization pursuant to § 6, the banks shall undertake, as a binding order of the firm and also among themselves, to update their credit claims
not exceeding the cash credit lines pursuant to § 1 (1) by the respective balances such that for all banks a credit use will develop according to the proportion of the mentioned
cash credit lines. The various banks must set off their potential credit balance on non-earmarked accounts against their credit claims ranging between the cash credit lines specified in
§ 1 (1). Charges based on debit and cheque returns to be included shall be allocated to the claims that are eligible to be taken into account within the framework of the payment of the
balance. This does not apply if and in so far as the cash credit line set forth in § 1 (1) will be exceeded by this.

	(3)
	In
case a mixed cash line was granted, any bill discounts charged on it will only be taken into account for the payment of the balance if a deficiency was proven; letters of credit
and sureties as far as payments were made amongst them.

	(4)
	The
valuation date for the payment of the balance shall be the achievement of a resolution on the taking of realization measures pursuant to §6 (2) sentence 1 or,
in urgent cases, the earliest receipt of the notification of the pool leader of the taking of realization measures at one of the other banks pursuant to § 6 (2) sentence 2.

	(5)
	In
case the basis of calculation changes after the payment of the balance was made (such as the clearing of the credit balance or payments from sureties), the balances shall be
balanced again.

	(6)
	In
case the payment of the balance cannot be made with effect towards the firm or any third party for legal grounds, the banks shall be obligated to bring about a respective result
internally. 

§ 8  

 Distribution of proceeds  

	(1)
	The
proceeds from the realization of securities shall be distributed according to the following rank order:

	(a)
	to
pay the costs, eventual taxes and other expenses accruing from the administration and realization of the securities as well as the payment of the pool leader (§ 9);

	(b)
	to
redeem the claims of the bank based on their granting of the credit pursuant to § 1 (1), on the basis of equal priority in proportion to the borrowing after the payment
of the balance pursuant to § 7, where only those claims of the calculation of the distribution key shall be used as a basis which do not exceed the credit lines set forth in §
1 (1);

	(c)
	to
redeem the claims of the banks the credit line of which was exceeded pursuant to § 1 (1), on the basis of equal priority in proportion to the exceeding; 

4

 

	(d)
	to
redeem the claims of the banks arising from additional credits, on the basis of equal priority in proportion to the additional borrowing as far as they were not returned from the
realization proceeds of the securities provided for them separately (§ 2 (5));

	(e)
	to
meet the other claims of the banks based on the business bank relations, on the basis of equal priority in proportion to the other claims. 

	(2)
	Discount
credits shall only be regarded as being made use of if a deficiency was proven; sureties, acceptance credits and letters of credit if the payment was made amongst them.

	(3)
	In
case the amount of the claims to be taken into account was not yet fixed at the moment when the proceeds will be distributed, they will not be considered for the moment when the
share relations in the realization proceeds will be determined. Only when these amounts will be finally fixed, will the share relation be finally calculated. Any eventual changes of the proceeds
allocated to the various parties to the contract resulting from this or from additional payments of the balance made pursuant to § 7 (5), must be balanced amongst
themselves—even if payments were already made.

	(4)
	The
banks shall be entitled amongst themselves to change the distribution key at any time.

	(5)
	Any
potential proceeds not needed any more shall be paid to the firm or the respective third party providing security, unless the banks are obligated to transfer these proceeds to a
third party that has satisfied one or several banks (such as a guarantor). 

§ 9  

 Costs, taxes, remuneration  

	(1)
	All
costs and taxes accruing to the pool leader or each bank holding a security, from this securities pool contract, in particular in connection with the administration and eventual
realization of the securities, shall be chargeable to the firm. In addition, the pool leader shall be entitled to receive a payment from the firm for its performance of the functions based on this
contract 

amounting
to 0.2% of the year end of the valuing credits of the previous year pursuant to § 1 (1) of this contract 

This
remuneration shall be paid in advance until 15.01. of the respective year, at the latest. 

	(2)
	If
the costs and taxes will not be paid by the firm, they will be borne by the banks in proportion to the credit lines set forth in § 1 (1). 

§ 10  

 Notification  

	(1)
	The
pool leader shall notify the other banks, justly and conveniently, of the state of the handling. The banks shall provide to it any information required for this.

	(2)
	The
banks shall inform each other if any facts will become known that could strongly endanger the return of the credits specified in § 1.

	(3)
	Each
bank shall be obligated, when requested by the other banks, to give information to the other banks on its claims against the firm and the securities as far as it concerns this
contract and its handling.

	(4)
	The
firm and the third parties providing security shall in so far exempt the banks from the bank secrecy. 

5

 
§ 11  

 Deferment and termination  

	(1)
	This
pool contract shall be concluded for an indefinite period.

	(2)
	Each
bank shall be entitled to terminate the contract by the end of a calendar year by observing three months' notice where for the observance of the period the receipt of the notice
of termination by the pool leader shall be decisive. If the pool leader terminates, the receipt of the notice of termination
by one of the other banks shall be decisive for the observance of the period. When the termination takes effect, the respective bank will leave this pool contract. It will be continued among the other
banks.

	(3)
	In
case of a termination according to par.2 the distribution of the securities shall be reserved to special agreements among the banks. The firm and each third party providing
security shall be obligated to contribute to a transfer of securities as far as this is required by law. When requested by just one of the banks, a payment of the balance must be made when the
terminating bank will leave, where the terminating bank itself must be involved, pursuant to the regulation set forth in § 7.

	(4)
	The
firm and the third party providing security may only terminate this contract if all obligations based on the credits specified in § 1 were met. 

§ 12  

 Place of performance, jurisdiction and applicable law  

	(1)
	It
shall be agreed that Dresden will be the place of performance and jurisdiction for all obligations arising from this contract.

	(2)
	This
contract shall be governed by the law of the Federal Republic of Germany. 

§ 13  

 Modifications and amendments to this contract  

Any
modifications and amendments to this contract shall be in writing to come into effect. The same shall apply to the waiver of this formal requirement. Any collateral agreements were not concluded. 

§ 14  

 Severability  

If
one or several of the provisions of this contract will prove to be invalid or unfeasible, the validity of the other provisions will not be affected by this. The parties to the contract will replace
any invalid or unfeasible provisions by a regulation that meets the economically desired effect and comes as close as possible to the content of the provision to be replaced. This shall apply
analogously if any gaps requiring an amendment will appear. 

6

 

	Dresden, 08.18.1999
 Place, date	 	Signature.
 (Deutsche Bank AG Filiale Dresden)
	

Berlin, 8.9.99
 Place, date	
 	

Signature
 (IKB Deutsche Industriebank AG)
	

Dresden, August 4, 1999
 Place, date	
 	

Signature
 (Southwall Europe GmbH)

Managing director
	

Dresden, August 4, 1999
 Place, date	
 	

Signature
 (Southwall Technologies Inc., Palo Alto, USA)

Vice President and CFO

7

0059DD-99-270DD 

IKB Deutsche Industriebank  

	Southwall Europe GmbH

Geschäftsführung	 	May 28, 1999
	

01897 Großröhrsdorf

c/o Herm Rechtsanwalt

Otto Stolberg-Stolberg	
 	

KD 264557
	Bohmerstr. 3	 	Telephone: 030/31009-9026

Fax: 030/31009-8026
	

01099 Dresden	
 	

 

Ladies
and gentlemen, 

referring
to our talk we like to offer you a credit (credit 1:) 

	Nominal amount of credit:	 	EUR 1,712,827.80 (equivalent to DEM 3,350,000.00)
	

Credits:	
 	

Existensgründungsprogramm (Government grants scheme to finance establishment of firms) in the new federal states and Berlin (East) of the Deutsche Ausgleichsbank, Bonn-Bad Godesberg (DtA)
	

Percentage rate of payment:	
 	

96%
	

Interest rate:	
 	

3.75% p.a.
	

Beginning of interest payment:	
 	

as of paying out or as of the day of our charging by DtA
	

Date of interest due:	
 	

quarterly afterwards by 03.31., 06.30., 09.30. and 12.31. of every year
	

Redemption:	
 	

11 rates of redemption amounting to EUR 142,737.35 and a last rate amounting to EUR 142,716.95 half-yearly by 03.31. and 09.30 of every year

first rate 03.31.2001

last rate 09.30.2006
	

Compensation in case of late payment	
 	

On amounts. we received out of time we will charge interest to you amounting to the relevant basic interest rate pursuant to § 1 Diskontsatz-überleitungs-Gesetz (Transitory law concerning discount rate) plus 5% p.a.
	

Reservation:	
 	

The paying out obligation shall terminate if the paying out conditions will not be available until 03.28.2000.
	

Credit commission of DtA:	
 	

0.25% per month started on non-valued nominal credit amounts since 05.01.1999, payable on the basis of our demands
	
 	
 	

 

 

	

General promise crediting	
 	

We grant this credit to you by crediting it against our general promise dated 04.26.1999
	

Special terms and conditions of DtA:	
 	

We point out that this credit wilt be refinanced via the European Investment Bank (EIB), Luxembourg. The following conditions apply in this case:
	

 	
 	

As far as useful and reasonable, the borrower will invite international competitive offers when placing an order concerning the works, supplies and services intended for the execution of the project which would at least cover the member states of the
European Union.
	

Use of credit:	
 	

The credit is exclusively destined for the co-financing of the total investments of DEM 38,346,000.00, including DEM 29,100,000.00 for investment costs eligible for promotion pursuant to your application to the DtA dated 03.15.1999.
	

 	
 	

Place of investments:

01897 Großröhrsdorf, manufacturing facility for the production of thermal reflex foils (XIR)
	

 	
 	
Investment scheme of the costs eligible for promotion:
	

 	
 	

Industrial building costs/buildings DEM 3,650,000.00
	

 	
 	

machines/mech. equipment DEM 21,450,000.00
	

 	
 	

storage investments DEM 4,000,000.00
	

 	
 	

Total DEM 29,000,000.00
	

 	
 	
Total investment scheme for the first investment phase until the year 2001:
	

 	
 	

Acquisition of real estate DEM 346,000.00
	

 	
 	

Industrial building costs (buildings) DEM 3,300,000.00
	

 	
 	

Technical facilities (buildings) DEM 11,800,000.00
	

 	
 	

2 mechanical equipment (total) DEM 23,100,000.00
	

 	
 	

Total DEM 38,346,000.00
	

 	
 	
Financing scheme for the first investment phase until the year 2001 -each in DEM equivalent -:
	

 	
 	

Credits of DtA
	

 	
 	

This credit 1 DEM 3,350,000.00
	
 	
 	

 

2

 

	

 	
 	
credit 2 from funds of the equity supplementary program (EKE) DEM 4,889,500.00
	

 	
 	

Investment grant (total) DEM 9,575,000.00
	

 	
 	

Investment allowance (total) DEM 3,830,000.00
	

 	
 	

Our additional credit 3 from our own bank credits or other refinancing credits, crediting against the a.m. general promise DEM 4,150,000.00
	

 	
 	

A long-term credit of the Deutsche Bank AG in Dresden DEM 6,000,000.00
	

 	
 	

Own funds DEM 3,251,500.00
	

 	
 	

Other own funds by recourse to a credit (possibly KfW-Beteiligungsprogramm Ost) DEM 3,300,000.00
	

 	
 	

Total DEM 38,346,000.00
	

Guarantee of the whole commitment with the exception of credit 2	
 	

The securities mentioned below serve altogether the total consortium financing given by us and the Deutsche Bank AG in Dresden, pursuant to the security pool contract still to be agreed between the a.m. bank as the pool leader and yourselves and your
shareholders:
	

 	
 	

a land charge of DEM 7,470,000.00, to be registered frst for the Deutsche Bank AG in Dresden on the investment property in Großröhrsdorf, a partial amount of DEM 4,150,000.00 of this amount will stand as security for our promised credit 3
and the remaining amount of DEM 3,320,000.00 will stand as security for credit claims of the Deutsche Bank AG, of equal priority with the partial amount held in trust for us,
	

 	
 	

another land charge of DEM 6,030,000.00 to be registered next in order of priority for the Deutsche Bank AG on the a.m, security object, a partial amount of DEM 3,350,000.00 of this amount stands as security for this credit 1 and the remaining amount
of DEM 2,680,000.00 stands as security for credit claims of the Deutsche Bank AG, of equal priority with the a.m. partial amount held in trust for us,
	
 	
 	

 

3

 

	

 	
 	

transfer by way of security - free of rights of any third parties -of the mechanical equipment purchased or still to be purchased by Ardenne Anlagentechnik GmbH having a supply value of about DEM 23,100,000.00 according to the contract form to be
provided by the Deutsche Bank AG in addition to the a.m. land charges and without prejudice to any rights arising from the legal accessory liability,
	

 	
 	

the guaranty of payment of VMP Venture Management Partners GmbH, Berlin, up to a total amount of DEM 1,000,000.00; of the partial amounts of DEM 500,000.00 -one equally-ranking half to each - one partial amount serves exclusively as security for our
credit commitment and the remaining amount for the Deutsche Bank AG in Dresden,
	

 	
 	

a guaranty of Southwall Technologies Inc., Palo Alto, USA, up to the total amount of DEM 3,000,000.00; of the partial amounts of DEM 1,500,000.00 - one equally-ranking half to each -one partial amount serves exclusively as security for our credit
commitment (credits 1 and 3) and the remaining amount for the Deutsche Bank AG in Dresden.
	

 	
 	

All contract forms including all annexes for the realization of the guaranty you will get from the Deutsche Bank AG within the framework of the loan contracts to be concluded with it.
	

Paying out procedure	
 	

We will call for the credit from the refinancing institute after having used the share of our own funds in advance amounting to DEM 3,300,000.00 and provide it to you after having received it where we will pay a fee to us for the investments proven
by vouchers for billing or architects' vouchers as soon as they are submitted to us:
	

 	
 	

declaration of agreement according to the attached form;
	

 	
 	

declaration of call according to the attached form;
	

 	
 	

security pool contract concluded with the Deutsche Bank AG in Dresden;
	

 	
 	

a confirmation of the pool leader Deutsche Bank AG that the agreed security was provided;
	
 	
 	

 

4

 

	

 	
 	

the bond of your shareholders, to contribute additional equity capital of a total amount of DEM 2,000,000.00 by 05.04.2000 to the company; an additional partial amount of DEM 1,251,500,00 must also be provided as equity capital to show the total
funding;
	

 	
 	

photocopies of the final credit promise of the Deutsche Bank AG in Dresden concerning the long-term investment credit of DEM 6,000,000,00;
	

 	
 	

all promotion funds decisions concerning the investment grants or investment allowances of the a.m. amounts that shall be without any doubts to us;
	

 	
 	

photocopies of the prime contracts for all building measures as well as a fixed price agreement with the suppliers of the mechanical equipment which shall also be without any doubts to us;
	

 	
 	

a topical extract from a registered statement of your business as well as of VMP Venture Management Partners GmbH and Southwall Technologies Inc., USA;
	

 	
 	

the amended and signed account opening documents; we annex the forms for this;
	

Other elements of the contract	
 	

the annexed "General terms and conditions (version for borrowers) for DtA programs" and our attached "General Bank Conditions"
	

Obligation to inform	
 	

During the term of our business relations with you you will Audit and inspection rights constantly send us your annual statement of accounts and, if necessary, the auditor's statement and allow us to inspect your books and accounts and visit your
firm: In addition, we also need the annual statements of accounts of Southwall Technologies Inc., Palo Alto, as well as of VMP Venture Management Partners GmbH, Berlin. If the completion of the corresponding annual statement of accounts will be
delayed, you shall send us the preliminary figures first. Additionally, you shall send us quarterly business evaluations for your company until further notice.
	

Other documents to be submitted	
 	

Photocopies of all security documents to be also taken in trust for us by the Deutsche Bank AG; however, we will request them from it ourselves.
	

Approval	
 	

until 06.25.1999 using the attached declaration of agreement.

We
are pleased to be able to support your investments by this credit. 

5

 

Kind
regards, 

IKB
Deutsche Industriebank AG

/Sig./ 

Annexes

General Bank Conditions

General terms and conditions

For DtA programs

Declaration of agreement (duplicate)

Declaration of call (quadruple)

Account opening documents (duplicate) 

6

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EXHIBIT 10.10    
  

 
 

LOAN AND PLEDGE AGREEMENT    
  

        This LOAN AND PLEDGE AGREEMENT (the "Agreement") is made as of September 10, 2001 between Peter Thiel
("Borrower") and PayPal, Inc. ("Lender"). 

        A.    Borrower
has concurrently herewith executed that certain Full Recourse Secured Promissory Note (the "Note") in favor of
Lender in the aggregate amount of One Million Three Hundred Fifty Thousand Dollars and No Cents ($1,350,000). 

        B.    Lender
is willing to extend a loan to Borrower in return for the Note from Borrower, but only upon the condition, among others, that Borrower shall have executed and
delivered to Lender this Loan and Pledge Agreement and the Collateral (as defined below) to secure Borrower's obligations under the Note and this Agreement. 

        THE
PARTIES AGREE AS FOLLOWS: 

        1.    Pledge of Stock.    

        1.1    Advance of Funds.    As security for the repayment by Borrower of the amounts payable under the Note, Borrower
herein assigns as security and pledges to Lender Two Million Eight Hundred Twelve Thousand Five Hundred (2,812,500) shares (the "Shares") of
Class A Stock of PayPal, Inc. (the "Issuer"), as further described in Section 5 below. 

        1.2    Promise to Pay.    The principal and interest payable by Borrower under the Note are secured as provided in
Section 5 and, as set forth in the Note, constitute full recourse obligations of Borrower. 

        2.    Distributions and Adjustments to the Shares.    

        2.1    Changes in Capital Structure.    If the Shares are changed by reason of a stock split, reverse stock split,
stock dividend or recapitalization, or converted or exchanged for other securities as a result of a merger or reorganization of Issuer, the number of Shares, the class of securities and the Lender
Exercise Price shall be appropriately adjusted to preserve the benefits to the parties under this Agreement, provided that the aggregate Lender Exercise Price shall remain unchanged. 

        2.2    Distributions and Additional Securities.    If any Distribution (as hereinafter defined) of securities, cash or
other property issued in connection with a change described in Section 2.1 shall be received by Borrower, Borrower shall, within five days of receipt, deliver the cash, certificates or other
instruments evidencing title to such Distribution or other securities, together with appropriate instruments of transfer, to Pledgeholder to be held as part of the Pledge. Any Distribution shall
become a part of the Share to which it relates and shall therefore, among other things, constitute additional Collateral (as such term is defined in Section 5.1 hereof). A
"Distribution" means any property receivable by Borrower or other holder of a Share as owner of any Share, and shall include, without limitation,
dividends (whether in cash or other property, such as securities or contract rights), cash, and securities or other property arising from a reorganization, recapitalization, stock split or merger of
the Issuer or the issuer of any security that is a Distribution. 

        2.3.    Determination of Fair Market Value.    For valuation purposes under this Agreement, the
"Value" of each Share on any relevant date shall be equal to the fair market value of such Share as determined in accordance with the following
provisions: 

        (a)  If
the Shares have not yet converted pursuant to their terms into shares of Issuer's Common Stock or if the Shares have been converted pursuant to their terms into
shares of Issuer's Common Stock but Issuer's Common Stock at the time is neither listed nor admitted to trading on any stock exchange nor traded in the over-the-counter market,
then the fair 

market value of each Share shall be determined by the Board of Directors of the Issuer, taking into account any limitations on transferability, whether due to the size of the block of shares or the
restrictions of applicable securities laws. 

        (b)  If
the Shares have converted pursuant to their terms into shares of Issuer's Common Stock, and if Issuer's Common Stock is at the time listed or admitted to trading on
any stock exchange, then the fair market value of each Share shall be the closing selling price of one share of Common Stock on the date in question on the stock exchange serving as the primary market
for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no reported sale of Common Stock on such exchange on the date in question,
then the fair market value of each Share shall be the closing selling price on the exchange on the last preceding date for which such quotation exists. 

        (c)  If
the Shares have converted pursuant to their terms into shares of Issuer's Common Stock, and if Issuer's Common Stock is not at the time listed or admitted to trading
on any stock exchange but is traded in the over-the-counter market, the fair market value of each Share shall be the mean between the highest bid and lowest asked prices (or,
if such information is available, the closing selling price) of one share of the Common Stock on the date in question in the over-the-counter market, as such prices are
reported by the National Association of Securities Dealers through its Nasdaq system or any successor system. If there are no reported bid and asked prices (or closing selling price) for the Common
Stock on the date in question, then the mean between the highest bid price and lowest asked price (or the closing selling price) on the last preceding date for which such quotations exist shall be
determinative of fair market value of each Share. 

        3.    Certain Rights Respecting Shares.    

        3.1    Rights Notice.    Borrower shall give notice (the "Rights
Notice") to Lender of any right to purchase additional shares or other securities ("Right") granted to Borrower and arising out
of Borrower's ownership of any Shares or Distributions, such Rights Notice to be given within five (5) days after Borrower becomes aware of the existence of any Right. Each Rights Notice shall
state the terms of the Right, including the expiration date for the exercise of the Right, shall state whether the Issuer will allow assignment of the Right to Lender, and shall be accompanied by the
notice received by Borrower advising of the existence of the Right. 

        3.2    Rights Exercise Notice.    Lender shall have ten (10) business days after receipt of a Rights Notice
within which to give notice (the "Rights Exercise Notice") to Borrower that Lender wishes Borrower to (i) assign all or a portion of such Right
to Pledgeholder, and/or (ii) exercise all or any portion of the Right. If Lender requests an assignment, Borrower shall, promptly and without further consideration, assign to Pledgeholder the
portion of the Right specified in the Rights Exercise Notice. If Lender requests Borrower to exercise all or any portion of the Right, and provide to Borrower the consideration required to be paid in
connection with the exercise of the Right prior to the expiration date of the Right, then Borrower shall exercise the Right and immediately transfer, assign and deliver to Pledgeholder the securities
received upon exercise in exchange for such consideration. Any amount advanced by Lender pursuant to this section shall be added to the amount of the loan hereunder. 

        3.3    Borrower's Right to Exercise.    If the Lender fails to give a Rights Exercise Notice in accordance with
Section 3.2 with respect to any Right, or portion of a Right, Borrower shall be free to exercise or assign such Right or portion of a Right for its own account. 

        4.    Loan Payment Terms.    

        4.1    Acceleration.    Lender may, at its option and in its sole discretion declare the then-outstanding
principal balance of the Loan, together with all accrued and unpaid interest 

thereon, to be immediately due and payable following the occurrence of any of the following (each of which is referred to herein as an "Event of
Default"): 

        (a)  the
failure of Borrower to pay any amount under this Agreement when due; 

        (b)  the
commencement of any proceeding against Borrower in bankruptcy, or otherwise seeking any reorganization, arrangement or similar relief, or the appointment of a
receiver, trustee, or liquidator to take possession of the assets of Borrower, or the commencement of any other proceeding under any law for the relief of creditors; 

        (c)  any
assignment by Borrower for the benefit of Borrower's creditors; 

        (d)  any
liquidation of Borrower; 

        (e)  Borrower
defaults on an obligation contained in this Agreement; 

        (f)    any
Event of Default occurs under the Note or that certain Full Recourse Secured Promissory Note of even date herewith by the PENSCO Trust Company Roth IRA Account fbo
Peter Thiel #TH076 in favor of the Company; or 

        (g)  Borrower's
employment by or association with Company is terminated for any reason or no reason, including, without limitation, death of Borrower. 

        4.2    Payment.    Borrower may prepay amounts due under the Note and this Agreement without the consent of Lender;  provided, however, that no such prepayment shall affect the validity or exercisability of the call rights held by Company under the Restricted Stock
Purchase Agreement of even date herewith between Borrower and Lender (the "Call"). If payment is due on a Saturday, Sunday, or a public holiday under the laws of the State of California, such payment
shall be made on the next succeeding business day and such extension of time shall be included in computing interest in connection with such payment. The date specified for payment under this
Section 4.2 may be accelerated as provided in Section 4.1. 

        5.    Pledge as Security.    

        5.1    Pledge.    As security for all of Borrower's obligations and liabilities to Lender whether now existing or
hereafter arising under this Agreement, the Note and the Restricted Stock Purchase Agreement of even date herewith, including without limitation the Borrower's obligation to perform under the Call
(the "Obligations"), Borrower herein assigns as security and pledges to Lender the Shares and grants Lender a security interest in Borrower's right,
title and interest in and to the Shares and any Distributions thereon, the proceeds (from disposition or otherwise) thereof and all proceeds (from disposition or otherwise) of proceeds (collectively
the "Collateral"). Borrower agrees to take such additional actions as may be necessary or advisable at the reasonable request of Lender to perfect and
continue Lender's security interest in the Collateral. 

        5.2    Default; Full Recourse Obligation.    Lender is authorized to purchase the Collateral or to sell, assign and
deliver at Lender's discretion, from time to time, all or any part of the Collateral at any private or public sale, on not less than ten (10) days' written notice to Borrower and Pledgeholder
(as such term is defined in Section 5.4 hereof), at such price or prices and upon such terms as Lender may deem advisable, and Lender shall have all the rights and remedies of a secured
creditor under the provisions of the California Uniform Commercial Code. At any such public sale, Lender may bid for, and become the purchaser of, the whole or any part of the Collateral offered for
sale. The parties agree that, prior to the establishment of a public market for the Common Stock of the Issuer, the securities laws affecting sale of the Shares make a public sale of the Shares
commercially unreasonable. The parties further agree that the repurchasing of such Shares by the Issuer, or by any person to whom the Issuer may have assigned its rights under this Agreement, is
commercially reasonable if made at a price at least equal to the Value of the Shares. In case of any sale, after deducting the costs, counsel fees and other expenses of sale and delivery, the
remaining proceeds of such sale shall be applied to the satisfaction of the Obligations; 

provided, however, that after satisfaction in full of the Obligations, the balance of the proceeds of sale then remaining shall be paid to Borrower. The Obligations are full recourse obligations. 

        5.3    Administration of Collateral.    The following provisions shall govern the administration of the Collateral: 

        (a)  So
long as no Event of Default shall have occurred: 

          (i)  The
Borrower shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part thereof for any purpose not
inconsistent with the terms of this Agreement or the Note; provided, however, that the Borrower shall not exercise or refrain from exercising any such right if, in the Pledgeholder's judgment, such
action or inaction would have a material adverse effect on the value of the Collateral or any part thereof; and provided, further, that the Borrower shall give the Pledgeholder at least five
(5) days' written notice of the manner in which he intends to exercise, and the reasons therefor, or the reasons for refraining from exercising, any such right. 

        (ii)  The
Borrower shall be entitled to receive all cash dividends and other cash distributions paid or payable with respect to any of the Collateral. Any and all instruments
and other property (other than cash or checks) received, receivable or otherwise distributed in respect of, or in exchange for, any Collateral, shall be, and shall be forthwith delivered to the
Pledgeholder to hold as Collateral and shall, if received by the Borrower, be received in trust for the benefit of the Pledgeholder, be segregated from the other property or funds of Borrower, and be
forthwith delivered to the Pledgeholder as Collateral in the same form as so received (with any necessary indorsement). 

        (b)  If
an Event of Default has occurred: 

          (i)  All
rights of Borrower to exercise the voting and other consensual rights which he would otherwise be entitled to exercise pursuant to
Section 5.3(a)(i) and to receive the dividends which he would otherwise be authorized to receive and retain pursuant to Section 5.3(a)(ii) shall cease, and all such rights
shall, upon notice by the Pledgeholder to Borrower, become vested in the Pledgeholder who shall thereupon have the sole right to exercise such voting and other consensual rights and the sole right to
receive and hold as Collateral such dividends (and to the extent permissible, apply them to the Obligations of the Borrower); and 

        (ii)  All
dividends which are received by the Borrower contrary to the provisions of paragraph (i) of this Section 5.3(b) shall be received in trust for the
benefit of the Pledgeholder, shall be segregated from other funds of the Borrower and shall be forthwith paid over to the Pledgeholder as Collateral in the same form as so received (with any necessary
indorsement). 

        5.4    Appointment of Pledgeholder.    Lender hereby appoints the Secretary of the Issuer, or his designee, as
"Pledgeholder" to accept and hold the Collateral on its behalf. To assure Borrower's ability to perform Borrower's Obligations under this Agreement,
Borrower will, concurrently with the delivery of this Agreement, deliver the stock certificate representing the Shares, together with a duly executed blank assignment separate from certificate for
such certificate, to Pledgeholder, such documents to be held in pledge (the "Pledge"). 

        5.5    Duties After an Event of Default.    Pledgeholder shall have no duty to determine the existence of an Event of
Default, but may, without any liability whatsoever, rely upon the written notice of Lender that an Event of Default has occurred. If, following an Event of Default, Lender shall elect to exercise its
right to realize on the Shares, Pledgeholder shall, upon the receipt of written notice from Lender of the number of Shares sold and sale price, (i) date the stock assignments necessary for each
transfer in question, (ii) fill in the number of Shares being transferred and (iii) deliver the same, together with the certificate(s) evidencing the Shares to be 

transferred to the purchaser against the simultaneous delivery to Pledgeholder of the purchase price for the number of the Shares then being purchased. In connection with each such sale, Pledgeholder
shall deliver from the Pledge the specific Shares which are designated by Lender; provided, however,
that Pledgeholder's duties hereunder are subject to the cooperation of Borrower, Issuer and Issuer's transfer agent or counsel with respect to furnishing to Pledgeholder all necessary stock
certificates and other related instruments as appropriate. Following an Event of Default, Pledgeholder shall dispose of the Collateral other than the Shares in accordance with written instructions of
Lender. After deducting the costs, counsel fees and other expenses of such sale and delivery, Pledgeholder shall pay the remaining proceeds of such sale to Lender to the extent of the Obligations of
Borrower under this Agreement and the Note as specified by Lender. Any remaining proceeds of such sale shall be paid to Borrower. 

        5.6    Duties of Pledgeholder Upon Exercise of Call.    If Pledgeholder is given a valid Call Exercise Notice,
Pledgeholder shall, on the Call Exercise Date (i) date the stock assignment necessary for the transfer in question, (ii) fill in the number of Shares being transferred and
(iii) deliver to Lender the assignment, together with the certificate for the Shares being transferred. 

        5.7    Return of Collateral.    Upon Borrower's satisfaction of the Obligations, Lender shall instruct Pledgeholder to
return to Borrower all Collateral, if any, then in Pledgeholder's possession. 

        5.8    Return of Property.    If, at the time of termination of the Pledge, Pledgeholder has in its possession any
documents, securities, or other property belonging to Borrower, then it shall deliver all of same to Borrower and shall be discharged of all further obligations hereunder. 

        5.9    Attorney-In-Fact; Additional Stock Assignments.    The parties hereby irrevocably
constitute and appoint Pledgeholder as their attorney-in-fact and agent for the term of this Pledge to execute, with respect to the securities and other property that are
deposited with Pledgeholder hereunder, all documents necessary or appropriate to make any such securities negotiable and complete any transaction contemplated herein. Borrower shall deliver to
Pledgeholder from time to time any instruments of transfer duly executed by Borrower as may be requested by Lender or Pledgeholder. 

        5.10    Duties.    Pledgeholder shall carry out its duties hereunder to the best of its ability and shall be liable
only for gross negligence or willful misconduct. Pledgeholder's duties hereunder may be altered, amended, modified or revoked only by a written instrument signed by Lender, Borrower and Pledgeholder. 

        5.11    Obligations.    Pledgeholder shall be obligated only for the performance of such duties as are specifically
set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by it to be genuine and to have been signed or presented by the proper
party or parties. Pledgeholder shall not be personally liable for any act it may do or omit to do hereunder as Pledgeholder or as attorney-in-fact for Borrower or Lender while
acting in good faith and in the exercise of its own judgment, and any act done or omitted by Pledgeholder pursuant to the advice of its own attorneys shall be conclusive evidence of such good faith. 

        5.12    Authorization to Act.    Pledgeholder is hereby expressly authorized to disregard any and all warnings given
by any of the parties hereto or by any other person or corporation, excepting only orders or process of courts of law, and are hereby expressly authorized to comply with and obey orders, judgments or
decrees of any court. In case Pledgeholder obeys or complies with any such order, judgment or decree of any court, it shall not be liable to any of the parties hereto or to any other person, firm or
corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without
jurisdiction. 

        5.13    Authority to Invest.    Any cash received by Pledgeholder pursuant to this Agreement and designated by Lender
as a Distribution shall be invested in an interest-bearing savings account and the interest thereon shall constitute a part of such Distribution. 

        5.14    Bankruptcy.    Bankruptcy, insolvency, dissolution or absence of any party hereto shall not affect
Pledgeholder's performance hereunder. 

        5.15    Statute of Limitations.    Pledgeholder shall not be liable for the lapse of any rights because of any Statute
of Limitation applicable with respect to this Agreement or any documents deposited with Pledgeholder. 

        5.16    Legal Counsel.    Pledgeholder shall be entitled to employ such legal counsel and other experts as it may deem
necessary to advise it properly in connection with its obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor, for which
Pledgeholder shall be reimbursed 50% by Lender and 50% by Borrower. 

        5.17    Termination of Duties; Successor.    Pledgeholder's responsibilities as Pledgeholder hereunder shall terminate
if (i) Pledgeholder shall resign by thirty (30) days written notice to Borrower and Lender, (ii) Borrower and Lender jointly agree as to Pledgeholder's termination and appoint
Pledgeholder's successor, or (iii) Pledgeholder dies or is disabled. In the event of such termination by resignation, death or disability, Lender shall appoint a successor. Upon receipt of
notice of appointment of a successor, all documents, shares and other property then in Pledgeholder's possession pursuant to this Agreement shall be delivered to such successor. 

        5.18    Further Instruments.    If Pledgeholder reasonably requires other or further instruments in connection with
this Agreement or obligations in respect hereto, the necessary parties hereto shall join in furnishing such instruments. 

        5.19    Disputes.    If any dispute arises with respect to the delivery and/or ownership or right of possession of the
securities or other property held by Pledgeholder hereunder, Pledgeholder may, at Pledgeholder's option, be relieved from all liability to Borrower and Lender by depositing all documents held
hereunder with the Clerk of the California Superior Court for the County of Santa Clara for the purpose of permitting the Borrower and Lender to litigate their respective rights in such court. The
receipt of the Clerk of such court of such documents shall discharge Pledgeholder from all liability to Borrower and Lender, and the same may be pleaded as a bar to any action by Borrower or Lender
against Pledgeholder. 

        6.    Representations, Warranties and Covenants of Borrower.    

        6.1    Ownership of Shares; No Conflicts.    Borrower represents and warrants as of this date, and covenants, for the
period beginning on this date and ending on the Expiration Date (as such term is defined in Section 7.5 hereof), that (i) Borrower has and will have the right to transfer to Lender all
or any part of the Shares and Distributions, free and clear of any lien, claim, encumbrance or restriction of any type or nature whatsoever (other than such as are presently held by the Lender or may
arise under this Agreement, and restrictions on resale that may arise under applicable federal and state securities laws); (ii) the Shares are not, and the Shares and Distributions will not be,
subject to any right of first refusal, right of repurchase or any similar right granted to, or retained by any person other than the Lender; and (iii) there is no provision of any existing
agreement, and Borrower will not enter into an agreement by which the Borrower is or would be bound (or to which the Borrower is or would become subject), that conflicts or would conflict with this
Agreement or the performance of Borrower's obligations under this Agreement. 

        6.2    Further Assurances.    Upon the reasonable request of Pledgeholder or Lender, Borrower will prepare, execute
and deliver any further instruments and do any further acts that may be necessary to carry out more effectively the purposes of this Agreement, including, if necessary, the preparation and execution
of applications to the California Department of Corporations. 

        6.3    Acknowledgement.    Borrower hereby acknowledges that he has had access to all of the information that Borrower
needs in order to make an informed decision to enter into this 

Agreement and that he has not relied on any information provided to him by Lender in reaching such decision. 

        7.    Miscellaneous.    

        7.1    Assignment.    

        (a)    By Borrower.    Except as otherwise provided herein, Borrower may not sell, assign, transfer, hypothecate,
pledge or otherwise encumber, in any manner, prior to the Expiration Date (as such term is defined in Section 7.5 hereof), this Agreement or any of the Shares or Distributions or Collateral.
Any attempt to sell, assign, transfer, hypothecate, pledge or otherwise encumber this Agreement, any interest therein or any such Shares or Distributions or Collateral and any levy of execution,
attachment, or similar process on the Shares or such Distributions or Collateral shall be null and void. Subject to the foregoing, this Agreement shall be binding on and inure to the benefit of the
heirs, executors, and personal representatives of Borrower. Notwithstanding the foregoing, Borrower may transfer the Shares to Borrower's Immediate Family (as defined below). As used herein,
"Immediate Family" shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister or stepchild (whether or not adopted). In case of a permitted transfer, the transferee or other
recipient shall receive and hold the Shares so transferred subject to the provisions of this Agreement and there shall be no further transfer of such Shares except in accordance with the terms of this
Section. Any transferee shall acknowledge the same by signing a copy of this Agreement. Any transfer or sale of the Shares is subject to restrictions on transfer imposed by any applicable state and
federal securities laws. 

        (b)    By Lender.    Lender may assign its right, title and interest in this Agreement, in whole or in part, effective
upon notice to Borrower and Pledgeholder. Following such assignment, this Agreement shall be binding upon and inure to the benefit of any such assignee. Such assignment shall be conditioned on
compliance with any applicable state and federal securities laws and, upon request by Borrower, Lender shall furnish an opinion of counsel to such effect, reasonably satisfactory to the Issuer and
Borrower. 

        7.2    Amendment.    Except as provided in Section 5.10 with respect to Pledgeholder's duties, this Agreement
may only be amended by a writing signed by Borrower and Lender. 

        7.3    Governing Law; Consent to Jurisdiction.    This Agreement shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts entered into and wholly to be performed in the State of California. Each party hereto hereby agrees that any action that, in whole or in
part, in any way arises under this Agreement shall be brought in the Superior Court of the State of California for the County of Santa Clara or the United States District Courts for the Northern
District of California. Each party hereby submits itself to the exclusive jurisdiction and venue of such Courts for purposes of any such action and agrees that any notice, document or complaint in any
such action may be served on it by delivery in the manner provided for the delivery of notices under this Agreement. 

        7.4    Notices.    All notices and other communications under this Agreement shall be in writing, and shall be deemed
to have been duly given on the date of delivery if delivered personally or by confirmed facsimile, or on the next day after dispatch via overnight messenger or courier, or on the second day after
mailing if mailed to the party to whom notice is to be given by first class mail, 

registered or certified, postage prepaid, and addressed as follows (until any such address is changed by notice duly given): 

	If to Borrower:	 	Peter Thiel

1788 Oak Creek Drive

Palo Alto, CA 94304
	

If to Lender:	
 	

PayPal, Inc.

1840 Embarcadero Road

Alto, CA 94303

Attn: Chief Financial Officer

Facsimile: (650) 251-1222
	

If to Pledgeholder:	
 	

PayPal, Inc.

1840 Embarcadero Road

Palo Alto, CA 94303

Attn: Secretary

Facsimile: (650) 251-1222

        7.5    Term.    This Agreement shall terminate upon full and complete payment in full of all Obligations under the
Note and this Agreement. The Pledgeholder, at the time of such termination and at the expense of the Borrower, will execute and deliver to the Borrower a proper instrument or instruments acknowledging
the termination of this Agreement, and will duly assign, transfer and deliver to the Borrower such of the Collateral as has not yet theretofore been sold or otherwise applied or released pursuant to
this Agreement, together with any monies at the time held by the Pledgeholder hereunder, [subject to any other agreement including, without limitation, the Restricted Stock Purchase
Agreement]. Such assignment and delivery shall be without warranty by or recourse to the Pledgeholder. 

        7.6    Voluntary Execution of Agreement.    Borrower and Lender each acknowledge that: (a) Borrower and Lender
have read this Agreement; (b) Borrower and Lender have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or have voluntarily
declined to seek such counsel; and (c) Borrower and Lender are fully aware of the legal and binding effect of this Agreement. 

[Signature Page Follows]

        IN
WITNESS WHEREOF, the parties hereto have duly executed this Loan, Pledge and Option Agreement as of the date first written above. 

	

BORROWER:	
 	

PETER THIEL
	

 	

 	

/s/ Peter Thiel
 (Signature)
	

LENDER:	
 	

PAYPAL, INC.
	

 	
 	

By:	
 	

/s/ Roelof F. Botha

	

 	
 	

Name:	
 	

Roelof F. Botha

	

 	
 	

Title:	
 	

CFO

SIGNATURE PAGE TO LOAN AND OPTION AGREEMENT

        Consent by P1edgeholder.    The undersigned, as Secretary of PayPal, Inc., agrees to act as Pledgeholder under this Loan,
Pledge and Option Agreement pursuant to Section 5 and agrees to be bound only by such Section 5 and Section 7. 

	

 	
 	

JOHN D. MULLER
	

 	

 	

/s/ John D. Muller

QuickLinks

EXHIBIT 10.10

LOAN AND PLEDGE AGREEMENT

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