Document:

EX-10.3

 Exhibit 10.3 

TAX MATTERS AGREEMENT 

DATED AS OF JULY 17, 2015 

BY AND BETWEEN 
 EBAY
INC. 
 AND 

PAYPAL HOLDINGS, INC. 

 TABLE OF CONTENTS 

 

											
	 	 	 	 	 	 	 	  	Page	 
			
	 Section 1.
	 	 Definition of Terms
	  	 	1	  
			
	 Section 2.
	 	 Allocation of Tax Liabilities
	  	 	12	  
				
		 	 Section 2.01      
	 	 General Rule
	  	 	12	  
				
		 	 Section 2.02
	 	 Allocation of United States Federal Taxes
	  	 	12	  
				
		 	 Section 2.03
	 	 Allocation of State Taxes
	  	 	13	  
				
		 	 Section 2.04
	 	 Allocation of Foreign Taxes
	  	 	13	  
				
		 	 Section 2.05
	 	 Certain Transaction and Other Taxes
	  	 	14	  
			
	 Section 3.
	 	 Proration of Taxes for Straddle Periods
	  	 	16	  
			
	 Section 4.
	 	 Preparation and Filing of Tax Returns
	  	 	16	  
				
		 	 Section 4.01
	 	 General
	  	 	16	  
				
		 	 Section 4.02
	 	 Tax Accounting Practices
	  	 	16	  
				
		 	 Section 4.03
	 	 Consolidated or Combined Tax Returns
	  	 	17	  
				
		 	 Section 4.04
	 	 Right to Review Tax Returns
	  	 	17	  
				
		 	 Section 4.05
	 	 SpinCo Carryback Items and Claims for Refund
	  	 	19	  
				
		 	 Section 4.06
	 	 Apportionment of Earnings and Profits and Tax Attributes
	  	 	19	  
			
	 Section 5.
	 	 Tax Payments
	  	 	20	  
				
		 	 Section 5.01
	 	 Payment of Taxes
	  	 	20	  
				
		 	 Section 5.02
	 	 Indemnification Payments
	  	 	21	  
			
	 Section 6.
	 	 Tax Benefits
	  	 	21	  
				
		 	 Section 6.01
	 	 Tax Benefits
	  	 	21	  
				
		 	 Section 6.02
	 	 eBay and SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation
	  	 	23	  
			
	 Section 7.
	 	 Tax-Free Status
	  	 	24	  
				
		 	 Section 7.01
	 	 Representations
	  	 	24	  

  
 i 

											
				
		 	 Section 7.02
	 	 Restrictions on SpinCo
	  	 	24	  
				
		 	 Section 7.03
	 	 Restrictions on eBay
	  	 	26	  
				
		 	 Section 7.04
	 	 Procedures Regarding Opinions and Rulings
	  	 	26	  
				
		 	 Section 7.05
	 	 Liability for Tax-Related Losses
	  	 	27	  
				
		 	 Section 7.06
	 	 Section 336(e) Election
	  	 	29	  
			
	 Section 8.
	 	 Assistance and Cooperation
	  	 	30	  
				
		 	 Section 8.01
	 	 Assistance and Cooperation
	  	 	30	  
				
		 	 Section 8.02
	 	 Income Tax Return Information
	  	 	30	  
				
		 	 Section 8.03
	 	 Reliance by eBay
	  	 	30	  
				
		 	 Section 8.04
	 	 Reliance by SpinCo
	  	 	31	  
			
	 Section 9.
	 	 Tax Records
	  	 	31	  
				
		 	 Section 9.01
	 	 Retention of Tax Records
	  	 	31	  
				
		 	 Section 9.02
	 	 Access to Tax Records
	  	 	31	  
			
	 Section 10.
	 	 Tax Contests
	  	 	31	  
				
		 	 Section 10.01
	 	 Notice
	  	 	31	  
				
		 	 Section 10.02
	 	 Control of Tax Contests
	  	 	32	  
			
	 Section 11.
	 	 Effective Date; Termination of Prior Intercompany Tax Allocation Agreements
	  	 	34	  
			
	 Section 12.
	 	 Survival of Obligations
	  	 	34	  
			
	 Section 13.
	 	 Treatment of Payments; Tax Gross Up
	  	 	34	  
				
		 	 Section 13.01
	 	 Treatment of Tax Indemnity and Tax Benefit Payments
	  	 	34	  
				
		 	 Section 13.02
	 	 Tax Gross Up
	  	 	35	  
				
		 	 Section 13.03    
	 	 Interest
	  	 	35	  
			
	 Section 14.
	 	 Disagreements
	  	 	35	  
			
	 Section 15.
	 	 Late Payments
	  	 	36	  
			
	 Section 16.
	 	 Expenses
	  	 	36	  

  
 ii 

											
			
	 Section 17.
	 	 General Provisions
	  	 	36	  
				
		 	 Section 17.01
	 	 Addresses and Notices
	  	 	36	  
				
		 	 Section 17.02
	 	 Assignability
	  	 	37	  
				
		 	 Section 17.03
	 	 Waiver
	  	 	37	  
				
		 	 Section 17.04
	 	 Severability
	  	 	37	  
				
		 	 Section 17.05
	 	 Authority
	  	 	37	  
				
		 	 Section 17.06
	 	 Further Action
	  	 	38	  
				
		 	 Section 17.07
	 	 Integration
	  	 	38	  
				
		 	 Section 17.08
	 	 Construction
	  	 	38	  
				
		 	 Section 17.09
	 	 No Double Recovery
	  	 	38	  
				
		 	 Section 17.10
	 	 Counterparts
	  	 	38	  
				
		 	 Section 17.11
	 	 Governing Law
	  	 	39	  
				
		 	 Section 17.12
	 	 Jurisdiction
	  	 	39	  
				
		 	 Section 17.13
	 	 Amendment
	  	 	39	  
				
		 	 Section 17.14
	 	 SpinCo Subsidiaries
	  	 	39	  
				
		 	 Section 17.15
	 	 Successors
	  	 	39	  
				
		 	 Section 17.16    
	 	 Injunctions
	  	 	39	  

  
 iii 

 TAX MATTERS AGREEMENT 

This TAX MATTERS AGREEMENT (this “Agreement”) is entered into as of July 17, 2015, by and between eBay Inc., a Delaware
corporation (“eBay”), and PayPal Holdings, Inc., a Delaware corporation and a wholly owned subsidiary of eBay (“SpinCo”) (collectively, the “Companies” and each a “Company”).

 RECITALS 
 WHEREAS, eBay
and SpinCo have entered into a Separation and Distribution Agreement, dated as of June 26, 2015 (the “Separation and Distribution Agreement”), providing for the separation of the eBay Group from the SpinCo Group; 

WHEREAS, pursuant to the terms of the Separation and Distribution Agreement, eBay will, among other things, (i) contribute the PayPal Assets to SpinCo
and its Subsidiaries, (ii) cause SpinCo and its Subsidiaries to assume the PayPal Liabilities, and (iii) effect the Distribution; 
 WHEREAS, eBay
and its Subsidiaries have engaged in the Internal Contribution and Internal Distribution to facilitate the Distribution; 
 WHEREAS, for U.S. Federal Income
Tax purposes, it is intended that each of the Internal Distribution and the Distribution shall qualify as transactions that are generally tax free pursuant to Sections 355(a) and 368(a)(1)(D) of the Code; 

WHEREAS, as of the date hereof, eBay is the common parent of an affiliated group of corporations, including SpinCo and PayPal, which has elected to file
consolidated U.S. federal income Tax Returns; 
 WHEREAS, as a result of the Distribution, SpinCo and its subsidiaries will cease to be members of
the affiliated group (as that term is defined in Section 1504 of the Code) of which eBay is the common parent (the “Deconsolidation”); 

WHEREAS, the parties desire to provide for and agree upon the allocation between the parties of liabilities for Taxes arising prior to, as a result of, and
subsequent to the Distribution, and to provide for and agree upon other matters relating to Taxes; 
 NOW THEREFORE, in consideration of the mutual
agreements contained herein, the parties hereby agree as follows: 
 Section 1. Definition of Terms. For purposes of
this Agreement (including the recitals hereof), the following terms have the following meanings, and capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Separation and Distribution Agreement: 

“3P Holdings” means PayPal Payment Holdings Pte. Ltd., a Singapore limited company and a wholly owned subsidiary of eBay AG prior to the
Internal Distribution. 
 “3P Holdings Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of
the Code and the regulations thereunder) by 3P Holdings and its “separate affiliated 

 
group” (as defined in Section 355(b)(3)(B) of the Code) of the PayPal Payments Business and PayPal Credit Business as conducted by China 93, China 94, China 98, and China 311 and the
Swedish marketplace business as conducted by AB immediately prior to the Internal Distribution. 
 “AB” means Tradera Sweden AB, a limited
liability company organized under the laws of Sweden. 
 “Accounting Cutoff Date” means, with respect to SpinCo, any date as of the end of
which there is a closing of the financial accounting records for such entity. 
 “Adjustment Request” means any formal or informal
claim or request filed with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including (a) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or,
if applicable, as previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously paid. 

“Affiliate” means any entity that is directly or indirectly “controlled” by either the person in question or an Affiliate of such
person. “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise. The term
Affiliate shall refer to Affiliates of a person as determined immediately after the Distribution. 
 “Agreement” shall mean this Tax
Matters Agreement. 
 “Business Day” has the meaning set forth in the Separation and Distribution Agreement. 

“CFC” means a controlled foreign corporation as defined in Section 957(a) of the Code. 

“CFO Certificate” shall have the meaning set forth in Section 7.02(e) of this Agreement. 

“China 93” means eBay Engineering & Research Center (Shanghai) Co. Ltd., a limited liability company organized under the laws of
China and a wholly owned subsidiary of eBay AG. 
 “China 94” means eBay Commerce Technology Operations (Shanghai) Co. Ltd., a
limited liability company organized under the laws of China and a wholly owned subsidiary of eBay AG. 
 “China 98” means eBay
Management (Shanghai) Co. Ltd., a limited liability company organized under the laws of China and a wholly owned subsidiary of eBay AG. 

“China 311” means Shanghai eBay Network Info. Service Co., Ltd., a limited liability company organized under the laws of China and a
subsidiary of eBay AG. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Companies” and “Company” shall have the meaning provided in the first sentence of this Agreement. 

  
 - 2 - 

 “Compensatory Equity Interests” shall have the meaning set forth in Section 6.02(a) of this
Agreement. 
 “Contribution” means the contribution of assets, including all of the shares of capital stock of PayPal, by eBay to
SpinCo pursuant to the Separation and Distribution Agreement. 
 “Deconsolidation” shall have the meaning provided in the
Recitals. 
 “Deconsolidation Date” means the last date on which SpinCo qualifies as a member of the affiliated group (as defined in
Section 1504 of the Code) of which eBay is the common parent. 
 “DGCL” means the Delaware General Corporation Law. 

“Distribution” shall mean the distribution by eBay of all the common stock of SpinCo pro rata to holders of eBay common
stock. 
 “Distribution Date” has the meaning set forth in the Separation and Distribution Agreement. 

“Distribution-Related Tax Contest” shall mean any Tax Contest in which the IRS, another Tax Authority or any other party asserts a
position that could reasonably be expected to adversely affect the Tax-Free Status of the Contribution and Distribution or the Internal Contribution and the Internal Distribution. 

“eBay” shall have the meaning provided in the first sentence of this Agreement. 

“eBay Adjustment” means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest to the extent eBay would be
exclusively liable for any resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement. 

“eBay Affiliated Group” shall have the meaning provided in the definition of “eBay Federal Consolidated Income Tax Return.”

 “eBay AG” means eBay International AG, a limited liability company organized under the laws of Switzerland and a wholly owned
subsidiary of eBay. 
 “eBay Federal Consolidated Income Tax Return” means any U.S. federal income Tax Return for the affiliated
group (as that term is defined in Section 1504 of the Code and the regulations thereunder) of which eBay is the common parent (the “eBay Affiliated Group”). 

“eBay Foreign Combined Income Tax Return” means a consolidated, combined or unitary or other similar Foreign Income Tax Return or any Foreign
Income Tax Return with respect to any profit and/or loss sharing group (e.g., UK group relief), group payment or similar group or fiscal unity that actually includes, by election or otherwise, one or more members of the eBay
Group together with one or more members of the SpinCo Group. 
 “eBay Group” means eBay and its Affiliates, excluding any entity
that is a member of the SpinCo Group. 

  
 - 3 - 

 “eBay Group Employees” shall have the meaning provided in the Employee Matters Agreement.

 “eBay Separate Return” means any Separate Return of eBay or any member of the eBay Group. 

“eBay State Combined Income Tax Return” means a consolidated, combined or unitary or other similar State Income Tax Return that actually
includes, by election or otherwise, one or more members of the eBay Group together with one or more members of the SpinCo Group. 
 “eBay
Subpart F Income Taxes” has the meaning set forth in Section 2.02(c). 
 “Employee Matters Agreement” means the Employee
Matters Agreement, dated as of July 17, 2015, by and between eBay and SpinCo. 
 “Escalation Committee” has the meaning set
forth in the Separation and Distribution Agreement. 
 “Federal Income Tax” means any Tax imposed by Subtitle A of the Code, and any
interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “Federal Income Tax Return” means any
Tax Return of (i) any member of the SpinCo Group (including any consolidated, combined or unitary return), or (ii) any member of the eBay Group (including any consolidated, combined or unitary return), in each case, with respect to Federal
Income Taxes, including any eBay Federal Consolidated Income Tax Return and any SpinCo Federal Consolidated Income Tax Return. 
 “Federal
Other Tax” means any Tax imposed by the federal government of the United States of America other than any Federal Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Federal Tax” means any Federal Income Tax or Federal Other Tax. 

“Federal Tax Return” means any Tax Return of (i) any member of the SpinCo Group (including any consolidated, combined or unitary
return), or (ii) any member of the eBay Group (including any consolidated, combined or unitary return), in each case, with respect to Federal Taxes. 

“Fifty-Percent or Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code.

 “Filing Date” shall have the meaning set forth in Section 7.05(d) of this Agreement. 

“Final Determination” means the final resolution of liability for any Tax, which resolution may be for a specific issue or adjustment or for
a Tax Period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the laws of a State, local, or foreign taxing jurisdiction, except that a
Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund or the right of the Tax Authority to
assert a further deficiency in respect of such issue or 

  
 - 4 - 

 
adjustment or for such Tax Period (as the case may be); (b) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and unappealable;
(c) by a closing agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or a comparable agreement under the laws of a State, local, or foreign taxing jurisdiction; (d) by any allowance of a refund or credit
in respect of an overpayment of Income Tax or Other Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of offset) by the jurisdiction imposing such Income Tax or Other Tax; or (e) by
any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties. 

“Foreign Income Tax” means any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of
any foreign country or United States possession, which is an income tax as defined in Treasury Regulations Section 1.901-2, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Foreign Other Tax” means any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of
any foreign country or United States possession, other than any Foreign Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Foreign Tax” means any Foreign Income Taxes or Foreign Other Taxes. 

“Foreign Tax Return” means any Tax Return of (i) any member of the SpinCo Group (including any consolidated, combined or unitary
return), or (ii) any member of the eBay Group (including any consolidated, combined or unitary return), in each case, with respect to Foreign Taxes. 

“Former eBay Group Employee” shall have the meaning provided in the Employee Matters Agreement. 

“Former PayPal Group Employee” shall have the meaning provided in the Employee Matters Agreement. 

“Group” means the eBay Group or the SpinCo Group, or both, as the context requires. 

“High-Level Dispute” means any dispute or disagreement (a) relating to liability under Section 7.05 of this Agreement or
(b) in which the amount of liability in dispute exceeds $25 million. 
 “Income Tax” means any Federal Income Tax, State Income
Tax or Foreign Income Tax. 
 “Indemnitee” shall have the meaning set forth in Section 13.03 of this Agreement. 

“Indemnitor” shall have the meaning set forth in Section 13.03 of this Agreement. 

“Internal Contribution” means the contribution of specified assets, including (i) the stock of AB, (ii) approximately $10,080,000
in cash, (iii) the stock of PayPal International Treasury Centre Sarl, (iv) the stock of PayPal Network Information Services (Shanghai) Co., Ltd., and (v) certain assets utilized in various customer service, research and development,
and administrative functions performed by certain individuals employed by China 93, China 94, China 98, and China 311 for the PayPal Payments Business in China, by eBay AG to 3P Holdings pursuant to the Separation and Distribution Agreement.

  
 - 5 - 

 “Internal Distribution” shall mean the distribution by eBay AG of all the common stock of 3P
Holdings to eBay in a transaction intended to qualify as a distribution that is generally tax free pursuant to Sections 355(a) and 368(a)(1)(D) of the Code. 

“IRS” means the United States Internal Revenue Service. 

“Joint Return” shall mean any Return of a member of the eBay Group or the SpinCo Group that is not a Separate Return. 

“Notified Action” shall have the meaning set forth in Section 7.04(a) of this Agreement. 

“Other Tax” means any Federal Other Tax, State Other Tax, or Foreign Other Tax. 

“Past Practices” shall have the meaning set forth in Section 4.02(a) of this Agreement. 

“Payment Date” means (i) with respect to any eBay Federal Consolidated Income Tax Return, the due date for any required installment of
estimated taxes determined under Section 6655 of the Code, the due date (determined without regard to extensions) for filing the return determined under Section 6072 of the Code, and the date the return is filed, and (ii) with respect
to any other Tax Return, the corresponding dates determined under the applicable Tax Law. 
 “Payor” shall have the meaning set
forth in Section 5.02(a) of this Agreement. 
 “PayPal” means PayPal, Inc., a Delaware corporation, and a direct wholly owned
subsidiary of eBay prior to the Contribution. 
 “PayPal Credit Business” means PayPal’s domestic consumer and merchant credit
business, known as PayPal Credit, which is part of the PayPal Payments Business. 
 “PayPal Group Employees” shall have the meaning
provided in the Employee Matters Agreement. 
 “PayPal Payments Business” means PayPal’s business of providing a technology
platform that enables digital and mobile payments on behalf of consumers and merchants. 
 “Person” means any individual,
partnership, corporation, limited liability company, association, joint stock company, trust, joint venture, unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether
any entity is treated as disregarded for U.S. Federal Income Tax purposes. 
 “Post-Deconsolidation Period” means any Tax Period
beginning after the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day after the Deconsolidation Date. 

  
 - 6 - 

 “Pre-Deconsolidation Period” means any Tax Period ending on or before the Deconsolidation Date,
and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Deconsolidation Date. 
 “Prime Rate” has
the meaning set forth in the Separation and Distribution Agreement. 
 “Privilege” means any privilege that may be asserted under
applicable law, including, any privilege arising under or relating to the attorney-client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation
processes. 
 “Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or
arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulations Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is
supported by SpinCo management or shareholders, is a hostile acquisition, or otherwise, as a result of which SpinCo would merge or consolidate with any other Person or as a result of which any Person or Persons would (directly or indirectly)
acquire, or have the right to acquire, from SpinCo and/or one or more holders of outstanding shares of SpinCo Capital Stock, a number of shares of SpinCo Capital Stock that would, when combined with any other changes in ownership of SpinCo Capital
Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (A) the value of all outstanding shares of stock of SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the
last transaction of such series, or (B) the total combined voting power of all outstanding shares of voting stock of SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such
series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (A) the adoption by SpinCo of a shareholder rights plan or (B) issuances by SpinCo that satisfy Safe Harbor VIII (relating to acquisitions in
connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulations Section 1.355-7(d). For purposes of determining whether a transaction constitutes
an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This definition and the
application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code shall
be incorporated into this definition and its interpretation. 
 “PTI” means any earnings and profits of a foreign corporation that
would be excluded from gross income pursuant to Section 959 of the Code. 
 “Recipient” means, with respect to the transfers
occurring pursuant to the Transactions, the Party receiving assets and/or liabilities. 
 “Representation Letters” means the
representation letters and any other materials delivered by, or on behalf of, eBay, SpinCo or others to a Tax Advisor in connection with the issuance by such Tax Advisor of a Tax Opinion. 

“Required Party” shall have the meaning set forth in Section 5.02(a) of this Agreement. 

  
 - 7 - 

 “Reserve” shall mean a financial statement reserve, in accordance with generally accepted
accounting principles, pursuant to FASB Interpretation No. 48, excluding, for the avoidance of doubt, any reserve related to Taxes imposed with respect to the Transactions. 

“Responsible Company” means, with respect to any Tax Return, the Company having responsibility for preparing and filing such Tax Return under
this Agreement. 
 “Restriction Period” shall mean the period beginning on the date hereof and ending on (and including) the
two-year anniversary of the Distribution Date. 
 “Retention Date” shall have the meaning set forth in Section 9.01 of this
Agreement. 
 “Section 336(e) Election” has the meaning set forth in Section 7.06. 

“Section 7.02(e) Acquisition Transaction” means any transaction or series of transactions that is not a Proposed Acquisition Transaction but
would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 30% instead of 40%. 

“Separate Return” means (a) in the case of any Tax Return of any member of the SpinCo Group (including any consolidated, combined or
unitary return), any such Tax Return that does not include any member of the eBay Group and (b) in the case of any Tax Return of any member of the eBay Group (including any consolidated, combined or unitary return), any such Tax Return that
does not include any member of the SpinCo Group. 
 “Separation and Distribution Agreement” shall have the meaning set forth in the
recitals of this Agreement. 
 “SpinCo” shall have the meaning provided in the first sentence of this Agreement, and references
herein to SpinCo shall include any entity treated as a successor to SpinCo. 
 “SpinCo Active Trade or Business” means the active
conduct (as defined in Section 355(b)(2) of the Code and the regulations thereunder) by SpinCo and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the PayPal Payments Business and PayPal Credit
Business as conducted by PayPal, PayPal (Europe) S.a.r.l. et Cie, S.C.A., and PayPal Pte. Ltd. immediately prior to the Distribution. 

“SpinCo Capital Stock” means all classes or series of capital stock of SpinCo, including (i) the SpinCo Common Stock, (ii) all
options, warrants and other rights to acquire such capital stock and (iii) all instruments properly treated as stock in SpinCo for U.S. federal income tax purposes. 

“SpinCo Carryback Item” means any net operating loss, net capital loss, excess tax credit, or other similar Tax item of any member of the
SpinCo Group which may or must be carried from one Tax Period to another prior Tax Period under the Code or other applicable Tax Law. 

“SpinCo Common Stock” has the meaning ascribed to the term “PayPal Shares” in the Separation and Distribution Agreement.

  
 - 8 - 

 “SpinCo Federal Consolidated Income Tax Return” shall mean any U.S. federal income Tax Return
for the affiliated group (as that term is defined in Section 1504 of the Code) of which SpinCo is the common parent. 
 “SpinCo
Group” means SpinCo and its Affiliates, as determined immediately after the Distribution. 
 “SpinCo Retained Other Taxes”
means Other Taxes incurred in the ordinary course of business that have been accrued on the financial statements of any member of the SpinCo Group as of the Distribution Date, excluding, for the avoidance of doubt, Other Taxes imposed with respect
to the Transactions. 
 “SpinCo Separate Return” means any Separate Return of SpinCo or any member of the SpinCo Group. 

“SpinCo Subpart F Income Taxes” has the meaning set forth in Section 2.02(c). 

“State Income Tax” means any Tax imposed by any State of the United States or by any political subdivision of any such State or the District
of Columbia, which is imposed on or measured by net income, including state and local franchise or similar Taxes measured by net income, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“State Other Tax” means any Tax imposed by any State of the United States or by any political subdivision of any such State or the District
of Columbia, other than any State Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“State Tax” means any State Income Taxes or State Other Taxes. 

“State Tax Return” means any Tax Return of (i) any member of the SpinCo Group (including any consolidated, combined or unitary return),
or (ii) any member of the eBay Group (including any consolidated, combined or unitary return), in each case, with respect to State Taxes. 

“Straddle Period” means any Tax Period that begins on or before and ends after the Deconsolidation Date. 

“Subpart F Income” means, collectively, (i) “subpart F income,” as defined in Section 952 of the Code and (ii) any
investment in “United States property,” as defined in Section 956 of the Code. 
 “Tax” or
“Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer,
import, export, value added, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or political subdivision thereof, and any
interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “Tax Advisor” means a United States tax
counsel or accountant of recognized national standing. 
 “Tax Advisor Dispute” shall have the meaning set forth in Section 14
of this Agreement. 

  
 - 9 - 

 “Tax Allocation Agreement” means the Tax Allocation Agreement, by and among eBay and certain of
its Subsidiaries, dated as of January 1, 2003. 
 “Tax Attribute” or “Attribute” shall mean a net operating
loss, net capital loss, unused investment credit, unused foreign tax credit, excess charitable contribution, general business credit or any other Tax Item that could reduce a Tax. 

“Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision thereof that imposes such Tax, and the
agency (if any) charged with the collection of such Tax for such entity or subdivision. 
 “Tax Benefit” means any loss, deduction,
refund, credit, or other item reducing Taxes otherwise payable (including, for the avoidance of doubt, the receipt of any distribution from a CFC, to the extent such distribution is treated as being made out of PTI). 

“Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of
redetermining Taxes (including any administrative or judicial review of any claim for refund). 
 “Tax-Free Status” means, with
respect to each of (i) the Contribution and Distribution, taken together, and (ii) the Internal Contribution and the Internal Distribution, taken together, the qualification thereof (a) as a transaction described in Sections 355 and
368(a)(1)(D) of the Code, (b) as a transaction in which the stock distributed thereby is “qualified property” for purposes of Sections 355(c)(2) and 361(c)(2) of the Code and (c) as a transaction in which eBay, SpinCo and
the members of their respective Groups recognize no income or gain for U.S. federal income tax purposes pursuant to Sections 355, 361 and 1032 of the Code, other than (x) income or gain recognized pursuant to Sections 367(a), 367(b) and/or 1248
and the Treasury Regulations promulgated under such provisions with respect to the Internal Contribution and the Internal Distribution or (y) intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations
promulgated pursuant to Section 1502 of the Code. 
 “Tax Item” means, with respect to any Income Tax, any item of income,
gain, loss, deduction, or credit. 
 “Tax Law” means the law of any governmental entity or political subdivision thereof relating to
any Tax. 
 “Tax Opinion” means each opinion of a Tax Advisor delivered to eBay in connection with and regarding the Federal Income
Tax treatment of, (i) the Contribution and the Distribution or (ii) the Internal Contribution and the Internal Distribution. 

“Tax Period” means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax
Law. 
 “Tax Records” means any Tax Returns, Tax Return workpapers, documentation relating to any Tax Contests, and any other books
of account or records (whether or not in written, electronic or other tangible or intangible forms and whether or not stored on electronic or any other medium) required to be maintained under the Code or other applicable Tax Laws or under any record
retention agreement with any Tax Authority. 

  
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 “Tax-Related Losses” means (i) all federal, state, local and foreign Taxes (including
interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise; (ii) all reasonable accounting, legal and other professional fees, and court costs incurred in connection with such Taxes; and
(iii) all reasonable costs and expenses and any damages associated with stockholder litigation or controversies and any amount required to be paid by eBay (or any eBay Affiliate) or SpinCo (or any SpinCo Affiliate) in respect of the liability
of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure of the Contribution and the Distribution or the Internal Contribution and the Internal Distribution to have Tax-Free
Status; provided, that amounts shall be treated as having been required to be paid for purposes of clause (iii) of this definition to the extent they are paid in a good faith compromise of an asserted claim. 

“Tax Return” or “Return” means any report of Taxes due, any claim for refund of Taxes paid, any information return with
respect to Taxes, or any other similar report, statement, declaration, or document filed or required to be filed under the Code or other Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and
including any amendments or supplements to any of the foregoing. 
 “Transaction Taxes” has the meaning set forth in Section
2.05(a). 
 “Transactions” means the Contribution, the Distribution and the other transactions contemplated by the Separation and
Distribution Agreement (including the Internal Contribution and the Internal Distribution).  
 “Transferor” means, with respect to
the transfers occurring pursuant to the Transactions, the Party transferring assets and/or liabilities. 
 “Treasury Regulations”
means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Period. 
 “Unqualified Tax
Opinion” means an unqualified opinion of a Tax Advisor on which eBay may rely to the effect that (i) a transaction will not affect the Tax-Free Status of the Contribution and the Distribution or
the Internal Contribution and the Internal Distribution, and (ii) will not adversely affect any of the conclusions set forth in any Tax Opinion regarding the Tax-Free Status of the Contribution and the Distribution or the Internal Contribution
and the Internal Distribution; provided, that any tax opinion obtained in connection with a proposed acquisition of SpinCo Capital Stock entered into during the Restriction Period shall not qualify as an Unqualified Tax Opinion
unless such tax opinion concludes that such proposed acquisition will not be treated as “part of a plan (or series of related transactions),” within the meaning of Section 355(e) of the Code and the Treasury Regulations promulgated
thereunder, that includes the Distribution or the Internal Distribution. Any such opinion must assume that the Contribution and Distribution and the Internal Contribution and the Internal Distribution would have qualified for Tax-Free Status if the
transaction in question did not occur. 

  
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 Section 2. Allocation of Tax Liabilities. 

Section 2.01 General Rule. 

(a) eBay Liability. eBay shall be liable for, and shall indemnify and hold harmless the SpinCo Group from and against any liability
for, Taxes which are allocated to eBay under this Section 2. 
 (b) SpinCo Liability. SpinCo shall be liable for, and shall
indemnify and hold harmless the eBay Group from and against any liability for, Taxes which are allocated to SpinCo under this Section 2. 

Section 2.02 Allocation of United States Federal Taxes. Except as otherwise provided in Section 2.05(b) or (c), Federal Taxes
shall be allocated as follows: 
 (a) Allocation of Tax Relating to Federal Tax Returns. eBay shall be responsible for any and
all Federal Taxes due with respect to or required to be reported on any Federal Tax Return required to be filed by a member of the eBay Group with respect to any Tax Period (or portion thereof) ending on or prior to the Distribution Date (including
any eBay Federal Consolidated Income Tax Return) (including any increase in such Tax as a result of a Final Determination); provided, however that SpinCo shall be responsible for any such Tax (including any increase in such Tax as a
result of a Final Determination) to the extent such Tax is imposed with respect to any matter for which any member of the SpinCo Group reflected a Reserve in its financial statements on the Distribution Date; provided, further, that
SpinCo shall be responsible for any Federal Other Taxes that are SpinCo Retained Other Taxes (including any increase in such Tax as a result of a Final Determination). For the avoidance of doubt, the amount of any such Reserve (or, in the case of
SpinCo Retained Other Taxes, the amount of any such accrual) shall not be treated as a minimum amount of, or a limitation on, SpinCo’s responsibility pursuant to Sections 2.02(a), 2.03(a), or 2.04(a). 

(b) Certain Post-Distribution Matters. Subject to SpinCo’s compliance with Section 4.02(c), eBay shall be responsible for any
and all Federal Income Taxes imposed on the SpinCo Group with respect to any Tax Period (or portion thereof) ending on or prior to December 31, 2016 arising solely from the purchase of certain credit receivables prior to the Distribution Date
or the SpinCo Group continuing to purchase or own such credit receivables until the date that is one day before the one-year anniversary of the Distribution Date. eBay shall not be responsible for any Taxes imposed on the SpinCo Group arising from
the purchase, ownership or disposition of credit receivables on or after the one-year anniversary of the Distribution Date. 
 (c)
Allocation of Certain Subpart F Income Taxes. Except to the extent otherwise provided in Section 2.02(b), and notwithstanding anything to the contrary in the Tax Allocation Agreement, Federal Income Taxes due with respect to any Subpart F
Income required to be included in income by the SpinCo Group under Section 951(a)(1) of the Code with respect to any Straddle Period of any CFC that is a member of the SpinCo Group and was transferred to SpinCo pursuant to the Contribution
shall be allocated as follows: (i) eBay shall be responsible for any such Taxes imposed with respect to Subpart F Income allocable to the portion of such Straddle Period that is a Pre-Deconsolidation Period (including any increase in such Tax
as a result of a Final Determination) (“eBay Subpart F Income Taxes”), and (ii) SpinCo shall be responsible 

  
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for any such Taxes imposed with respect to Subpart F Income allocable to the portion of such Straddle Period that is a Post-Deconsolidation Period (including any increase in such Tax as a result
of a Final Determination) (“SpinCo Subpart F Income Taxes”). For this purpose, Subpart F Income shall be allocated between the Pre-Deconsolidation Period and the Post-Deconsolidation Period based on a hypothetical “closing of
the books” at the end of the Distribution Date. 
 Section 2.03 Allocation of State Taxes. Except as otherwise provided in
Section 2.05(b) or (c), State Taxes shall be allocated as follows: 
 (a) Allocation of Tax Relating to State Tax
Returns. eBay shall be responsible for any and all State Taxes due with respect to or required to be reported on any State Tax Return with respect to any Tax Period (or portion thereof) ending on or prior to the Distribution Date (including any
increase in such Tax as a result of a Final Determination) and, for the avoidance of doubt, eBay shall be responsible for any and all State Other Taxes imposed with respect to the Transactions except to the extent SpinCo is otherwise liable for such
State Other Taxes pursuant to Section 7.05; provided, however that SpinCo shall be responsible for any such Tax (including any increase in such Tax as a result of a Final Determination) to the extent such Tax is imposed with
respect to any matter for which any member of the SpinCo Group reflected a Reserve in its financial statements on the Distribution Date; provided, further, that SpinCo shall be responsible for any State Other Taxes that are SpinCo
Retained Other Taxes (including any increase in such Tax as a result of a Final Determination). 
 (b) Certain Post-Distribution
Matters. Subject to SpinCo’s compliance with Section 4.02(c), eBay shall be responsible for any and all State Income Taxes imposed on the SpinCo Group with respect to any Tax Period (or portion thereof) ending on or prior to
December 31, 2016 arising solely from the purchase of certain credit receivables prior to the Distribution Date or the SpinCo Group continuing to purchase or own such credit receivables until the date that is one day before the one-year
anniversary of the Distribution Date. eBay shall not be responsible for any Taxes imposed on the SpinCo Group arising from the purchase, ownership or disposition of credit receivables on or after the one-year anniversary of the Distribution Date.

 Section 2.04 Allocation of Foreign Taxes. Except as otherwise provided in Section 2.05(b) or (c), Foreign Taxes
shall be allocated as follows: 
 (a) Allocation of Tax Relating to Foreign Tax Returns. eBay shall be responsible for any and
all Foreign Taxes due with respect to or required to be reported on any Foreign Tax Return with respect to any Tax Period (or portion thereof) ending on or prior to the Distribution Date (including any increase in such Tax as a result of a Final
Determination) and, for the avoidance of doubt, eBay shall be responsible for any and all Foreign Other Taxes imposed with respect to the Transactions except to the extent SpinCo is otherwise liable for such Foreign Other Taxes pursuant to
Section 7.05; provided, however that SpinCo shall be responsible for any such Tax (including any increase in such Tax as a result of a Final Determination) to the extent such Tax is imposed with respect to any matter for which any
member of the SpinCo Group reflected a Reserve in its financial statements on the Distribution Date; provided, further, that SpinCo shall be responsible for any Foreign Other Taxes that are SpinCo Retained Other Taxes (including any
increase in such Tax as a result of a Final Determination). 
 (b) Certain Post-Distribution Matters. Subject to SpinCo’s
compliance with Section 4.02(c), eBay shall be responsible for any and all Foreign Income Taxes imposed on the SpinCo Group with respect to any Tax Period (or portion thereof) ending on or prior to December 31, 2016 arising solely from the
purchase of certain credit receivables prior to the Distribution Date or the SpinCo Group continuing to purchase or own such credit receivables until the date that is one day before the one-year anniversary of the Distribution Date. eBay shall not
be responsible for any Taxes imposed on the SpinCo Group arising from the purchase, ownership or disposition of credit receivables on or after the one-year anniversary of the Distribution Date. 

  
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 Section 2.05 Certain Transaction and Other Taxes. 

(a) Transaction Taxes. 

(i) All charges for goods or services in respect of the transfers occurring pursuant to the Transactions,
and related transaction costs, shall be exclusive of any value added, goods and services, sales, use, consumption, excise, service, transfer, stamp, documentary, filing, recordation taxes or similar taxes (“Transaction Taxes”).
Without limiting any provision of this Agreement, the Recipient shall be responsible for all Transaction Taxes imposed on or assessed with respect to the provision of goods or services by the Transferor. The Transferor shall issue proper invoices
usable by the Recipient to recover (by way of credit or refund) Transaction Taxes in jurisdictions where they are recoverable. The Transferor and the Recipient shall cooperate to minimize any Transaction Taxes and in obtaining any refund, return, or
rebate, or applying an exemption or zero-rating for goods or services giving rise to any Transaction Taxes, including by filing any exemption or other similar forms or providing valid tax identification numbers or other relevant registration
numbers, certificates, or other documents. The Recipient and the Transferor shall cooperate regarding any requests for information, audits, or similar requests by any Tax Authority concerning Transaction Taxes payable with respect to the transfers
occurring pursuant to the Transactions. If, within twelve (12) months following the date any Transaction Taxes are paid pursuant to this Section 2.05(a)(i) by SpinCo or a member of the SpinCo Group to any Taxing Authority, eBay or a member
of the eBay Group in respect of the transfers occurring pursuant to the Transactions, the SpinCo Group is unable, using commercially reasonable efforts, to fully recover (by way of credit or refund) any such Transaction Taxes, SpinCo may seek
reimbursement of such unrecoverable Transaction Taxes from eBay. SpinCo’s request for reimbursement of such nonrecoverable Transaction Taxes from eBay shall include documentation of the nonrecoverable Transaction Taxes and substantiation that a
refund or credit is not permitted. eBay shall pay any amounts under this Section 2.05(a)(i) to SpinCo within ninety (90) days following the receipt of a substantiated request for reimbursement from SpinCo. To the extent that, after
receiving reimbursement of any such nonrecoverable Transaction Taxes from eBay pursuant to this Section 2.05(a)(i), a member of the SpinCo Group recovers (by way of credit or refund) all or a portion of such Transaction Taxes, SpinCo shall
repay such recovered Transaction Taxes to eBay. 
 (ii) The Recipient shall be entitled to deduct and withhold
Tax required by applicable law to be withheld on payments made to the Transferor pursuant to the Transactions. To the extent any amounts are so withheld, the Recipient shall timely remit such deducted and withheld amounts to the relevant Tax
Authority and promptly provide the 

  
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Transferor with evidence of such payment. The Transferor agrees to complete and provide to the Recipient or, if required, to the relevant Tax Authority, at least ten (10) days prior to
the payment due date, such forms, certifications, or other documents as may be reasonably requested by the Recipient, in order to reduce or exempt the withholding of any Tax with respect to payments made to the Transferor when and where
applicable by Law. The Recipient and the Transferor shall cooperate regarding any requests for information, audits, or similar requests by any Tax Authority concerning the withholding of any Tax payable with respect to the Transactions.
If, within twelve (12) months following the date any Taxes are withheld by eBay or a member of the eBay Group in respect of payments or other transfers to SpinCo or a member of the SpinCo Group occurring pursuant to the Transactions,
the SpinCo Group is not able to apply or credit any such withheld Taxes against Taxes otherwise payable by the SpinCo Group, SpinCo may seek reimbursement of the amount of such withheld Taxes that cannot be so applied or credited
from eBay. SpinCo’s request for such reimbursement of such withheld Taxes from eBay shall include documentation of the Taxes withheld and substantiation that a credit or other relief is not permitted. eBay shall pay any amounts under this
Section 2.05(a)(ii) to SpinCo within ninety (90) days following the receipt of a substantiated request for reimbursement from SpinCo. To the extent that, after receiving reimbursement of any such withheld Taxes from eBay pursuant to this
Section 2.05(a)(ii), the SpinCo Group obtains a credit or other relief with respect to all or a portion of such withheld Taxes, SpinCo shall repay such credited Taxes (or, to the extent any such other relief is obtained, an amount equal to the
corresponding reduction in Taxes otherwise payable by the SpinCo Group) to eBay. 
 (iii) Any penalties or interest
imposed on any Transaction Taxes described in Section 2.05(a)(i) or Tax described in Section 2.05(a)(ii) shall be the responsibility of the Recipient unless such penalties or interest are the result of an action or failure to act by the
Transferor. The amounts for which the Recipient or Transferor is liable pursuant to this Section 2.05(a) shall include all reasonable accounting, legal and other professional fees, and court costs incurred in connection with the relevant
Taxes. 
 (b) SpinCo Liability. SpinCo shall be liable for, and shall indemnify and hold harmless the eBay Group from and
against any liability for: 
 (i) any Tax resulting from a breach by SpinCo of any representation or covenant
in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement; and 
 (ii) any
Tax-Related Losses for which SpinCo is responsible pursuant to Section 7.05 of this Agreement. 
 The amounts for which SpinCo is liable
pursuant to Section 2.05(b)(i) shall include all accounting, legal and other professional fees, and court costs incurred in connection with the relevant Taxes. 

  
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 (c) eBay Liability. eBay shall be liable for, and shall indemnify and hold harmless the
SpinCo Group from and against any liability for: 
 (i) any Tax resulting from a breach by eBay of any
representation or covenant in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement; and 

(ii) any Tax-Related Losses for which eBay is responsible pursuant to Section 7.05 of this Agreement. 

The amounts for which eBay is liable pursuant to Section 2.05(c)(i) shall include all accounting, legal and other professional fees, and court costs
incurred in connection with the relevant Taxes. 
 Section 3. Proration of Taxes for Straddle Periods. 

(a) General Method of Proration. In the case of any Straddle Period, Tax Items shall be apportioned between Pre-Deconsolidation Periods
and Post-Deconsolidation Periods in accordance with the principles of Treasury Regulations Section 1.1502-76(b) as reasonably interpreted and applied by the Companies. With respect to the eBay Federal Consolidated Income Tax Return for the
taxable year that includes the Distribution, no election shall be made under Treasury Regulation Section 1.1502-76(b)(2)(ii). If the Deconsolidation Date is not an Accounting Cutoff Date, the provisions of Treasury Regulation
Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate the items (other than extraordinary items) for the month which includes the Deconsolidation Date. 

(b) Transactions Treated as Extraordinary Item. In determining the apportionment of Tax Items between Pre-Deconsolidation Periods and
Post-Deconsolidation Periods, any Tax Items relating to the Transactions shall be treated as extraordinary items described in Treasury Regulation Section 1.1502-76(b)(2)(ii)(C) and shall (to the extent occurring on or prior to the
Deconsolidation Date) be allocated to Pre-Deconsolidation Periods, and any Taxes related to such items shall be treated under Treasury Regulations Section 1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall (to the extent
occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods. 
 Section 4. Preparation and
Filing of Tax Returns. 
 Section 4.01 General. Except as otherwise provided in this Section 4, Tax Returns
shall be prepared and filed when due (taking into account extensions) by the Person obligated to file such Tax Returns under the Code or applicable Tax Law. The Companies shall provide, and shall cause their Affiliates to provide, assistance and
cooperation to one another in accordance with Section 8 with respect to the preparation and filing of Tax Returns, including by providing information required to be provided pursuant to Section 8. 

Section 4.02 Tax Accounting Practices. 

(a) General Rule. Except as otherwise provided in Section 4.02(b) and (c), with respect to any Tax Return that SpinCo has the
obligation and right to prepare and file, or cause to be prepared and filed, for any Straddle Period (or any Tax Period beginning after the Deconsolidation Date to the extent items reported on such Tax Return could reasonably be expected to affect
items reported on any Tax Return that eBay has the obligation or right to prepare and file for any Pre-Deconsolidation Period or any Straddle Period), such Tax Return shall be prepared in  

  
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accordance with past practices, accounting methods, elections or conventions (“Past Practices”) used with respect to the Tax Returns in question except to the extent otherwise
required by applicable law. Except as otherwise provided in Section 4.02(b), eBay shall prepare any Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.01, in accordance
with reasonable Tax accounting practices selected by eBay. 
 (b) Reporting of Transactions. Except to the extent otherwise required
by applicable law or as a result of a Final Determination, (A) neither eBay nor SpinCo shall, and shall not permit or cause any member of its respective Group to, take any position that is either inconsistent with the treatment of each of
(i) the Contribution and Distribution, taken together, or (ii) the Internal Contribution and the Internal Distribution, taken together, in each case, as having Tax-Free Status (or analogous status under state or local law) and,
(B) SpinCo shall not, and shall not permit or cause any member of the SpinCo Group to, take any position with respect to an item of income, deduction, gain, loss, or credit on a Tax Return, or otherwise treat such item in a manner which is
inconsistent with the manner such item is reported on a Tax Return required to be prepared or filed by eBay pursuant to Section 4.01 hereof (including, without limitation, the claiming of a deduction previously claimed on any such Tax
Return). 
 (c) Reporting of Credit Receivables Purchases. Except to the extent otherwise required by (i) a change in
applicable law on or before the one-year anniversary of the Distribution Date, (ii) applicable law after the one-year anniversary of the Distribution Date, or (iii) as a result of a Final Determination, neither SpinCo nor eBay shall, and
neither shall permit or cause any member of its respective Group to, take any position with respect to the purchase, ownership, or disposition of credit receivables that is inconsistent with the Past Practices of eBay and its subsidiaries with
respect to the Tax reporting thereof referred to in Sections 2.02(b), 2.03(b), and 2.04(b). In the event SpinCo determines that it is required to take such an inconsistent position, it shall promptly notify eBay in writing, and the parties
shall cooperate to minimize the amount of Taxes for which eBay may be liable pursuant to Sections 2.02(b), 2.03(b), and 2.04(b). 

Section 4.03 Consolidated or Combined Tax Returns. SpinCo will elect and join, and will cause its respective Affiliates to elect
and join, in filing any eBay State Combined Income Tax Returns, eBay Foreign Combined Income Tax Returns and any other Joint Returns that eBay reasonably determines are required to be filed (or that eBay chooses to file) by the Companies or any of
their Affiliates for Tax Periods ending on, before or after the Deconsolidation Date. With respect to any SpinCo Separate Returns relating to any Tax Period (or portion thereof) ending on or prior to the Distribution Date, SpinCo will elect and
join, and will cause its respective Affiliates to elect and join, in filing consolidated, unitary, combined, or other similar joint Tax Returns, to the extent each entity is eligible to join in such Tax Returns, if eBay reasonably determines that
the filing of such Tax Returns is consistent with past reporting practices, or, in the absence of applicable past practices, will result in the minimization of the net present value of the aggregate Tax to the entities eligible to join in such Tax
Returns. 
 Section 4.04 Right to Review Tax Returns. 

(a) General. The Responsible Company with respect to any material Tax Return shall make such Tax Return (or the relevant portions
thereof), related workpapers and other supporting documents available for review by the other Company, to the extent (i) such Tax Return 

  
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relates to Taxes for which such other Company is or would reasonably be expected to be liable, (ii) such other Company is or would reasonably be expected to be liable in whole or in part for
any additional Taxes owing as a result of adjustments to the amount of Taxes reported on such Tax Return, (iii) such Tax Return relates to Taxes for which the other party would reasonably be expected to have a claim for Tax Benefits under this
Agreement, or (iv) reasonably necessary for the other party to confirm compliance with the terms of this Agreement. The Responsible Company shall use reasonable efforts to make such Tax Return, workpapers and other supporting documents
available for review as required under this paragraph promptly once such Tax Return is materially complete, but in any event no later than three (3) weeks in advance of the due date for filing of such Tax Return, such that the other party has a
meaningful opportunity to review and comment on such Tax Return, and shall use reasonable efforts to have such Tax Return modified before filing, taking into account the person responsible for payment of the Tax (if any) reported on such Tax Return.
The Companies shall attempt in good faith to resolve any disagreement arising out of the review of such Tax Return and, failing such resolution, any disagreement shall be resolved in accordance with the disagreement resolution provisions of
Section 14 as promptly as practicable. 
 (b) Execution of Returns Prepared by Other Party. In the case of any Tax Return which
is required to be prepared and filed by one Company under this Agreement and which is required by law to be signed by the other Company (or by its authorized representative), the Company which is legally required to sign such Tax Return shall not be
required to sign such Tax Return under this Agreement unless there is at least a greater than 50% likelihood of prevailing on the merits for the Tax treatment of each material item reported on the Tax Return. 

  
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 Section 4.05 SpinCo Carryback Items and Claims for Refund. SpinCo hereby agrees that,
unless eBay consents in writing (which consent shall not be unreasonably withheld), (i) no Adjustment Request with respect to any Tax Return with respect to which eBay is the Responsible Company (including any Joint Return) or any other Tax
Return reflecting Taxes for which eBay is responsible under Section 2 shall be filed, and (ii) any available elections to waive the right to claim in any Pre-Deconsolidation Period with respect to any Tax Return with respect to which eBay
is the Responsible Company (including any Joint Return) or any Tax Return reflecting both Taxes for which eBay is responsible under Section 2 and Taxes for which SpinCo is responsible under Section 2 any SpinCo Carryback Item arising in a
Post-Deconsolidation Period shall be made, and no affirmative election shall be made to claim any such SpinCo Carryback Item; provided, however, that the parties agree that any such Adjustment Request shall be made with respect to any SpinCo
Carryback Item related to U.S. federal or State Income Taxes, upon the reasonable request of SpinCo, if such SpinCo Carryback Item is necessary to prevent the loss of the federal and/or State Income Tax Benefit of such SpinCo Carryback Item
(including, but not limited to, an Adjustment Request with respect to a SpinCo Carryback Item of a federal or State capital loss arising in a Post-Deconsolidation Period to a Pre-Deconsolidation Period) and such Adjustment Request, based on
eBay’s sole, reasonable determination, will cause no Tax detriment to eBay, the eBay Group or any member of the eBay Group. Any Adjustment Request which eBay consents to make under this Section 4.05 shall be prepared and filed by the
Responsible Company for the Tax Return to be adjusted; provided, however, that, prior to the filing of any such Adjustment Request, the other Party shall have the right to review such Adjustment Request together with any related
workpapers and other supporting documentation. 
 Section 4.06 Apportionment of Earnings and Profits and Tax Attributes.

 (a) If the eBay Affiliated Group has a Tax Attribute, the portion, if any, of such Tax Attribute apportioned to SpinCo or the
members of the SpinCo Group and treated as a carryover to the first Post-Deconsolidation Period of SpinCo (or such member) shall be determined by eBay in accordance with Treasury Regulations Sections 1.1502-21, 1.1502-21T, 1.1502-22, 1.1502-79 and,
if applicable, 1.1502-79A. 
 (b) No Tax Attribute with respect to consolidated Federal Income Tax of the eBay Affiliated
Group, other than those described in Section 4.06(a), and no Tax Attribute with respect to consolidated, combined or unitary state, local, or foreign Income Tax, in each case, arising in respect of a Joint Return shall be apportioned to SpinCo
or any member of the SpinCo Group, except as eBay (or such member of the eBay Group as eBay shall designate) determines is otherwise required under applicable law. SpinCo and eBay agree that the California R&D credit shall not be considered a
Tax Attribute to which this Section 4.06 applies. 
 (c) eBay (or its designee) shall determine the portion, if any, of any Tax
Attribute which must (absent a Final Determination to the contrary) be apportioned to SpinCo or any member of the SpinCo Group in accordance with this Section 4.06 and applicable law and the amount of tax basis, earnings and profits (including,
for the avoidance of doubt, PTI), and “tax pools” to be apportioned to SpinCo or any member of the SpinCo Group in accordance with this Section 4.06 and applicable law, and shall provide written supporting documentation of the
calculation thereof to SpinCo as soon as reasonably practicable after the information necessary to make such calculation becomes available to eBay. For the absence of doubt, eBay shall not be liable to SpinCo or any member of the SpinCo Group for
any failure of any determination 

  
 - 19 - 

 
under this Section 4.06 to be accurate under applicable law. The parties intend that, to the extent such PTI is subject to allocation under Treasury Regulations Section 1.312-10 and
related rules and to the extent permitted by applicable law, any PTI attributable to income inclusions with respect to which eBay is responsible for Federal Income Taxes pursuant to Section 2.02(b) or (c) shall be allocated to eBay or a
member of the eBay Group. 
 (d) The written documentation delivered by eBay pursuant to Section 4.06(c) shall be binding on
SpinCo and each member of the SpinCo Group and shall not be subject to dispute resolution. Except to the extent otherwise required by applicable law or pursuant to a Final Determination, SpinCo shall not take any position (whether on a Tax Return or
otherwise) that is inconsistent with the information contained in such written documentation. 
 Section 5. Tax
Payments. 
 Section 5.01 Payment of Taxes. In the case of any Tax Return reflecting both Taxes for which eBay is
responsible under Section 2 and Taxes for which SpinCo is responsible under Section 2: 
 (a) Computation and Payment of Tax
Due. With respect to any such Tax Return, the Responsible Company shall pay any Tax required to be paid to the applicable Tax Authority on or before the relevant Payment Date (and provide notice and proof of payment to the other Company).

 (b) Computation and Payment of Liability with Respect to Tax Due. Within 90 days following the earlier of (i) the due
date (taking into account extensions) for filing any such Tax Return (excluding any Tax Return with respect to payment of estimated Taxes or Taxes due with a request for extension of time to file) or (ii) the date on which such Tax Return is
filed, if eBay is the Responsible Company, then SpinCo shall pay to eBay the amount, if any, allocable to the SpinCo Group under the provisions of Section 2, and if SpinCo is the Responsible Company, then eBay shall pay to SpinCo the amount
allocable to the eBay Group under the provisions of Section 2, in each case, plus interest computed at the Prime Rate on the amount of the payment based on the number of days from the earlier of (i) the due date of the Tax Return
(including extensions) or (ii) the date on which such Tax Return is filed, to the date of payment. 
 (c) Adjustments
Resulting in Underpayments. In the case of any adjustment pursuant to a Final Determination with respect to any such Tax Return, the Responsible Company shall pay to the applicable Tax Authority when due any additional Tax due with respect to
such Return required to be paid as a result of such adjustment pursuant to a Final Determination. The Responsible Company shall compute the amount attributable to the SpinCo Group in accordance with Section 2 and SpinCo shall pay to eBay any
amount due eBay (or eBay shall pay SpinCo any amount due SpinCo) under Section 2 within 90 days from the later of (i) the date the additional Tax was paid by the Responsible Company or (ii) the date of receipt of a written notice and
demand from the Responsible Company for payment of the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto. Any payments required under this
Section 5.02(c) shall include interest computed at the Prime Rate based on the number of days from the date the additional Tax was paid by the Responsible Company to the date of the payment under this Section 5.01(c). 

(d) Notwithstanding anything to the contrary herein, if the amount to be paid pursuant to Section 5.01(b) or (c) (in each
case, excluding interest) is in excess of $25 million, then, no later than the later of (i) five Business Days after the date of receipt of a written notice and demand from the Responsible Company for payment of the amount due, sent by Federal
Express or the equivalent with tracking receipt, accompanied by a statement detailing the Taxes required to be paid and (ii) three Business Days prior to the due date for the payment of such Tax, SpinCo shall pay to eBay any amount due eBay (or
eBay shall pay SpinCo any amount due SpinCo) under Section 2. 

  
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 Section 5.02 Indemnification Payments. 

(a) If any Company (the “Payor”) is required under applicable Tax Law to pay to a Tax Authority a Tax
that another Company (the “Required Party”) is liable for under this Agreement, the Required Party shall reimburse the Payor within 90 days of delivery by the Payor to the Required Party of an invoice for the amount due, accompanied
by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto. The reimbursement shall include interest on the Tax payment computed at the Prime Rate based on the number of days
from the date of the payment to the Tax Authority to the date of reimbursement under this Section 5.02. Notwithstanding anything to the contrary herein, if the amount to be paid pursuant to this Section 5.02 excluding interest is in excess
of $25 million, then, no later than the later of (i) five Business Days after delivery by the Payor to the Required Party of an invoice for the amount due, sent by Federal Express or the equivalent with tracking receipt, accompanied by a
statement detailing the Taxes required to be paid and describing in reasonable detail the particulars relating thereto, and (ii) three Business Days prior to the due date for the payment of such Tax, the Required Party shall pay the Payor.

 (b) All indemnification payments under this Agreement shall be made by eBay directly to SpinCo and by SpinCo directly to eBay;
provided, however, that if the Companies mutually agree with respect to any such indemnification payment, any member of the eBay Group, on the one hand, may make such indemnification payment to any member of the SpinCo Group, on the other
hand, and vice versa. 
 Section 6. Tax Benefits. 

Section 6.01 Tax Benefits. 

(a) Except as set forth below, eBay shall be entitled to any refund (and any interest thereon received from the applicable Tax
Authority) of Income Taxes and Other Taxes for which eBay is liable hereunder, SpinCo shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Income Taxes and Other Taxes for which SpinCo is liable
hereunder and a Company receiving a refund to which another Company is entitled hereunder in whole or in part shall pay over such refund (or portion thereof) to such other Company within 90 days after such refund is received (together with interest
computed at the Prime Rate based on the number of days from the date the refund was received to the date the refund was paid over). 

(b) If (i) a member of the SpinCo Group actually realizes in cash any Tax Benefit as a result of (A) an adjustment pursuant
to a Final Determination or reporting required by Section 4.02(b) 

  
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or (c) that increases Taxes for which a member of the eBay Group is liable hereunder (or reduces any Tax Attribute of a member of the eBay Group), or (B) any income inclusion by the
SpinCo Group with respect to which eBay is responsible for Federal Income Taxes pursuant to Section 2.02(b) or (c), and, in each case, such Tax Benefit would not have arisen but for such adjustment, reporting or income inclusion (determined on
a “with and without” basis), or (ii) if a member of the eBay Group actually realizes in cash any Tax Benefit as a result of an adjustment pursuant to a Final Determination or reporting required by Section 4.02(b) or (c) that
increases Taxes for which a member of the SpinCo Group is liable hereunder (or reduces any Tax Attribute of a member of the SpinCo Group) and such Tax Benefit would not have arisen but for such adjustment or reporting (determined on a “with and
without” basis), SpinCo or eBay, as the case may be, shall make a payment to either eBay or SpinCo, as appropriate, within 90 days following such actual realization of the Tax Benefit, in an amount equal to such Tax Benefit actually realized in
cash (including any Tax Benefit actually realized as a result of the payment), plus interest on such amount computed at the Prime Rate based on the number of days from the date of such actual realization of the Tax Benefit to the date of payment of
such amount under this Section 6.01(b). 
 (c) No later than 90 days after a Tax Benefit described in Section 6.01(b) is
actually realized in cash by a member of the eBay Group or a member of the SpinCo Group, eBay (if a member of the eBay Group actually realizes such Tax Benefit) or SpinCo (if a member of the SpinCo Group actually realizes such Tax Benefit) shall
provide the other Company with a written calculation of the amount payable to such other Company by eBay or SpinCo pursuant to this Section 6. In the event that eBay or SpinCo disagrees with any such calculation described in this
Section 6.01(c), eBay or SpinCo shall so notify the other Company in writing within 90 days of receiving the written calculation set forth above in this Section 6.01(c). eBay and SpinCo shall endeavor in good faith to resolve such
disagreement, and, failing that, the amount payable under this Section 6 shall be determined in accordance with the disagreement resolution provisions of Section 14 as promptly as practicable. 

(d) SpinCo shall be entitled to any refund that is attributable to, and would not have arisen but for, a SpinCo Carryback Item pursuant
to the proviso set forth in Section 4.05; provided, however, SpinCo shall indemnify and hold the members of the eBay Group harmless from and against any and all collateral Tax consequences resulting from or caused by any such Carryback,
including (but not limited to) the loss or postponement of any benefit from the use of Tax Attributes generated by a member of the eBay Group or an Affiliate thereof if (x) such Tax Attributes expire unutilized, but would have been utilized but
for such Carryback, or (y) the use of such Tax Attributes is postponed to a later Tax Period than the Tax Period in which such Tax Attributes would have been utilized but for such Carryback. Any such payment of such refund made by eBay to
SpinCo pursuant to this Section 6.01(d) shall be recalculated in light of any Final Determination (or any other facts that may arise or come to light after such payment is made, such as a carryback of an eBay Group Tax Attribute to a Tax Period
in respect of which such refund is received) that would affect the amount to which SpinCo is entitled, and an appropriate adjusting payment shall be made by SpinCo to eBay such that the aggregate amount paid pursuant to this Section 6.01(d)
equals such recalculated amount (with interest computed at the Prime Rate). 

  
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 Section 6.02 eBay and SpinCo Income Tax Deductions in Respect of Certain Equity Awards
and Incentive Compensation. 
 (a) Allocation of Deductions. 

(i) Except as provided in Section 6.02(a)(ii), to the extent permitted by applicable law, Income Tax
deductions arising by reason of exercises of options to acquire eBay or SpinCo stock, vesting of “restricted” eBay stock or SpinCo stock, or settlement of restricted stock awards, restricted stock units, performance-based restricted stock
units, performance share units, or deferred stock units, in each case, following the Distribution, with respect to eBay stock or SpinCo stock (such options, restricted stock, restricted stock units, performance share units, and deferred stock units,
collectively, “Compensatory Equity Interests”) held by any Person shall be claimed (i) in the case of an eBay Group Employee or Former eBay Group Employee, solely by the eBay Group, and (ii) in the case of a PayPal Group
Employee or Former PayPal Group Employee, solely by the SpinCo Group. To the extent permitted by applicable law, Income Tax deductions with respect to shares issued under the eBay ESPP or the PayPal ESPP (each as defined in the Employee Matters
Agreement) shall be claimed (i) in the case of eBay shares issued (or SpinCo shares received in respect of eBay shares issued) under the eBay ESPP, solely by the eBay Group, and (ii) in the case of SpinCo shares issued under the PayPal
ESPP, solely by the SpinCo Group. 
 (ii) To the extent permitted by applicable law, Income Tax deductions
arising by reason of exercises of stock options to acquire eBay or SpinCo stock, following the Distribution, held by any Transferring Director, Continuing eBay Director or Transitioning eBay Group Employee (each as defined in the Employee Matters
Agreement) shall be claimed by the issuing corporation. To the extent permitted by applicable law, Income Tax deductions arising by reason of vesting of “restricted” eBay stock or SpinCo stock, or settlement of restricted stock units,
performance-based restricted stock units or performance share units, in each case, following the Distribution, with respect to eBay stock or SpinCo stock held by any Transitioning eBay Group Employee shall be claimed solely by the eBay Group. To the
extent permitted by applicable law, Income Tax deductions arising by reason of settlement of deferred stock units with respect to eBay stock or SpinCo stock, following the Distribution, held by any Transferring Director or Continuing eBay Director
shall be claimed by the issuing corporation. 
 (b) Withholding and Reporting. Tax reporting and withholding with respect to
Compensatory Equity Interests shall be governed by Section 4.02(i) of the Employee Matters Agreement. The party that is entitled to claim the Tax deductions described in Section 6.02(a)(i) with respect to shares issued under the eBay ESPP
or PayPal ESPP shall be responsible for all applicable Taxes (including, but not limited to, withholding and excise taxes) and shall satisfy, or shall cause to be satisfied, all applicable Tax reporting obligations with respect thereto. 

  
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 Section 7. Tax-Free Status. 

Section 7.01 Representations. 

(a) Each of eBay and SpinCo hereby represents and warrants that (A) it has reviewed the Representation Letters and
(B) subject to any qualifications therein, all information, representations and covenants contained in such Representation Letters that relate to such Company or any member of its Group are true, correct and complete. 

(b) SpinCo hereby represents and warrants that it has no plan or intention of taking any action, or failing to take any action (or
causing or permitting any member of its Group to take or fail to take any action), in each case, from and after the Distribution Date that could reasonably be expected to cause any representation or factual statement made in this Agreement, the
Separation and Distribution Agreement, the Representation Letters or any of the Ancillary Agreements to be untrue. 
 (c)
SpinCo hereby represents and warrants that, during the two-year period ending on the Distribution Date, there was no “agreement, understanding, arrangement, substantial negotiations or discussions” (as such terms are defined in
Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the SpinCo Group or by any other person or persons with the implicit or explicit permission of one or more of such officers or directors
regarding an acquisition of all or a significant portion of the SpinCo Capital Stock (or any predecessor); provided, however, that no representation is made regarding any such “agreement, understanding, arrangement, substantial
negotiations or discussions” (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers, directors, or controlling shareholders of any member of the eBay Group (or another person with the implicit or
explicit permission of one or more of such persons). 
 Section 7.02 Restrictions on SpinCo. 

(a) SpinCo agrees that it will not take or fail to take, or cause or permit any SpinCo Affiliate to take or fail to take, any action
where such action or failure to act would be inconsistent with or cause to be untrue any material information, covenant or representation in this Agreement, the Separation and Distribution Agreement, any of the Ancillary Agreements or any
Representation Letter. SpinCo agrees that it will not take or fail to take, or permit any SpinCo Affiliate to take or fail to take, any action which prevents or could reasonably be expected to prevent Tax-Free Status. 

(b) Reserved. 
 (c)
SpinCo agrees that, from the date hereof until the first day after the Restriction Period, it will (i) maintain its status as a company engaged in the SpinCo Active Trade or Business for purposes of Section 355(b)(2) of the Code and
(ii) not engage in any transaction that would result in it ceasing to be a company engaged in the SpinCo Active Trade or Business for purposes of Section 355(b)(2) of the Code. SpinCo further agrees that, from the date hereof until the
first day after the Restriction Period, it will cause 3P Holdings to (i) maintain its status as a company engaged in the 3P Holdings Active Trade or Business for purposes of Section 355(b)(2) of the Code and (ii) not engage in any
transaction that would result in it ceasing to be a company engaged in the 3P Holdings Active Trade or Business for purposes of Section 355(b)(2) of the Code. 

  
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 (d) SpinCo agrees that, from the date hereof until the first day after the Restriction
Period, it will not (i) enter into any Proposed Acquisition Transaction or, to the extent SpinCo has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (a) redeeming
rights under a shareholder rights plan, (b) finding a tender offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition
Transaction, or (c) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or any similar corporate statute, any “fair price” or other provision of SpinCo’s charter or bylaws or
otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in a single transaction or series of transactions sell or transfer (other than sales or transfers of inventory in the ordinary course of
business) all or substantially all of the assets that were transferred to SpinCo pursuant to the Contribution or sell or transfer 50% or more of the gross assets of the SpinCo Active Trade or Business or 30% or more of the consolidated gross assets
of SpinCo and its Affiliates (such percentages to be measured based on fair market value as of the Distribution Date), (iv) redeem or otherwise repurchase (directly or through a SpinCo Affiliate) any SpinCo stock, or rights to acquire stock,
except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment by Revenue Procedure 2003-48), (v) amend its certificate of incorporation (or other organizational documents),
or take any other action, whether through a stockholder vote or otherwise, affecting the voting rights of SpinCo Capital Stock (including, without limitation, through the conversion of one class of SpinCo Capital Stock into another class of SpinCo
Capital Stock), (vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any representation or covenant made in the Representation Letters) which in the aggregate (and
taking into account any other transactions described in this subparagraph (d)) would be reasonably likely to have the effect of causing or permitting one or more persons to acquire, directly or indirectly, stock representing a Fifty-Percent or
Greater Interest in SpinCo or otherwise jeopardize the Tax-Free Status of the Distribution or Internal Distribution, or (vii) cause or permit 3P Holdings to take any action or enter into any transaction
described in the preceding clauses (ii) through (vi) (substituting references to “SpinCo,” the “Contribution,” the “SpinCo Active Trade or Business” and “SpinCo Capital Stock” with references to 3P
Holdings, the Internal Contribution, 3P Holdings Active Trade or Business, and 3P Holdings stock) unless, in each case, prior to taking any such action set forth in the foregoing clauses (i) through (vii), (A) SpinCo shall have requested
that eBay obtain a private letter ruling (or, if applicable, a supplemental private letter ruling) from the IRS and/or any other applicable Tax Authority in accordance with Section 7.04(b) and (d) of this Agreement to the effect that such
transaction will not affect the Tax-Free Status and eBay shall have received such a private letter ruling in form and substance satisfactory to eBay in its reasonable discretion (and in determining whether a private letter ruling is satisfactory,
eBay may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations made in connection with such private letter ruling), or (B) SpinCo shall provide eBay with an Unqualified Tax
Opinion in form and substance reasonably satisfactory to eBay (and in determining whether an opinion is satisfactory, eBay may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if
used as a basis for the opinion and eBay may determine that no opinion would be acceptable to eBay) or (C) eBay shall have waived the requirement to obtain such private letter ruling or Unqualified Tax Opinion. 

(e) Certain Issuances of SpinCo Capital Stock. If SpinCo proposes to enter into any Section 7.02(e) Acquisition Transaction or, to
the extent SpinCo has the right to prohibit any Section 7.02(e) Acquisition Transaction, proposes to permit any Section 7.02(e) Acquisition Transaction to occur, in each case, during the period from the date hereof until the first day
after the Restriction Period, SpinCo shall provide eBay, no later than ten days following the signing of any written agreement with respect to the Section 7.02(e) Acquisition Transaction, with a written description of such transaction
(including the type and amount of SpinCo Capital Stock to be issued in such transaction) and a certificate of the Chief Financial Officer of SpinCo to the effect that the Section 7.02(e) Acquisition Transaction is not a Proposed Acquisition
Transaction or any other transaction to which the requirements of Section 7.02(d) apply (a “CFO Certificate”). 

  
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 Section 7.03 Restrictions on eBay. eBay agrees that it will not take or fail to take,
or cause or permit any member of the eBay Group to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material information, covenant or representation in this Agreement, the
Separation and Distribution Agreement, any of the Ancillary Agreements or any Representation Letters. eBay agrees that it will not take or fail to take, or cause or permit any member of the eBay Group to take or fail to take, any action which
prevents or could reasonably be expected to prevent Tax-Free Status. 
 Section 7.04 Procedures Regarding Opinions and Rulings.

 (a) If SpinCo notifies eBay that it desires to take one of the actions described in clauses (i) through
(vii) of Section 7.02(d) (a “Notified Action”), eBay and SpinCo shall reasonably cooperate to attempt to obtain the private letter ruling or Unqualified Tax Opinion referred to in Section 7.02(d), unless eBay shall
have waived the requirement to obtain such private letter ruling or Unqualified Tax Opinion. 
 (b) Rulings or Unqualified Tax
Opinions at SpinCo’s Request. At the reasonable request of SpinCo pursuant to Section 7.02(d), eBay shall cooperate with SpinCo and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a private letter
ruling from the IRS (and/or any other applicable Tax Authority, or if applicable, a supplemental private letter ruling) or an Unqualified Tax Opinion for the purpose of permitting SpinCo to take the Notified Action. Further, in no event shall eBay
be required to file any request for a private letter ruling under this Section 7.04(b) unless SpinCo represents that (A) it has reviewed the request for such private letter ruling, and (B) all information and representations, if any,
relating to any member of the SpinCo Group, contained in the related private letter ruling documents are (subject to any qualifications therein) true, correct and complete. SpinCo shall reimburse eBay for all reasonable costs and expenses incurred
by the eBay Group in obtaining a private letter ruling or Unqualified Tax Opinion requested by SpinCo within ten Business Days after receiving an invoice from eBay therefor. 

(c) Rulings or Unqualified Tax Opinions at eBay’s Request. eBay shall have the right to obtain a private letter ruling (or, if
applicable, a supplemental private letter ruling) from the IRS and/or any other applicable Tax Authority) or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If eBay determines to obtain a private letter ruling or an
Unqualified Tax Opinion, SpinCo shall (and shall cause each Affiliate of SpinCo to) cooperate with eBay and take any and all actions reasonably requested by eBay in connection with 

  
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obtaining the private letter ruling or Unqualified Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or information
requested by the IRS, or other applicable Tax Authority, or Tax Advisor; provided that SpinCo shall not be required to make (or cause any Affiliate of SpinCo to make) any representation or covenant that is inconsistent with historical facts
or as to future matters or events over which it has no control). eBay and SpinCo shall each bear its own costs and expenses in obtaining a private letter ruling or an Unqualified Tax Opinion requested by eBay. 

(d) SpinCo hereby agrees that eBay shall have sole and exclusive control over the process of obtaining any private letter ruling
pursuant to Section 7.04(b) or (c), and that only eBay shall apply for such a private letter ruling. In connection with obtaining a private letter ruling pursuant to Section 7.04(b), (A) eBay shall keep SpinCo informed in a timely
manner of all material actions taken or proposed to be taken by eBay in connection therewith; (B) eBay shall (1) reasonably in advance of the submission of any related private letter ruling documents provide SpinCo with a draft copy
thereof, (2) reasonably consider SpinCo’s comments on such draft copy, and (3) provide SpinCo with a final copy; and (C) eBay shall provide SpinCo with notice reasonably in advance of, and SpinCo shall have the right to attend,
any meetings with the IRS or other applicable Tax Authority (subject to the approval of the IRS or other applicable Tax Authority) that relate to such private letter ruling. Neither SpinCo nor any SpinCo Affiliate directly or indirectly controlled
by SpinCo shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or otherwise) at any time concerning the Contribution or the Distribution or the Internal Contribution and the Internal Distribution (including the
impact of any transaction on the Contribution, Distribution, Internal Contribution, or Internal Distribution, as applicable). In addition, SpinCo’s applicable officers, employees, and/or representative shall also be listed on the power of
attorney (IRS Form 2848 or comparable form) provided to the IRS or other applicable Tax Authority in connection with any such private letter ruling request. 

Section 7.05 Liability for Tax-Related Losses. 

(a) Notwithstanding anything in this Agreement or the Separation and Distribution Agreement to the contrary, subject to
Section 7.05(c), SpinCo shall be responsible for, and shall indemnify and hold harmless eBay and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related
Losses that are attributable to or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution or the Distribution) of all or a portion of SpinCo’s Capital Stock and/or its or its
subsidiaries’ assets (including any capital stock of 3P Holdings) by any means whatsoever by any Person, (B) any action or failure to act by SpinCo after the Distribution (including, without limitation, any amendment to SpinCo’s
certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of SpinCo stock (including, without limitation, through the conversion of one class of SpinCo Capital
Stock into another class of SpinCo Capital Stock), (C) any act or failure to act by SpinCo or any SpinCo Affiliate described in Section 7.02 (regardless whether such act or failure to act is covered by a private letter ruling, Unqualified
Tax Opinion or waiver described in clause (A), (B) or (C) of Section 7.02(d), or a CFO Certificate described in Section 7.02(e)) or (D) any breach by SpinCo of its agreement and representations set forth in
Section 7.01. 

  
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 (b) Notwithstanding anything in this Agreement or the Separation and Distribution
Agreement to the contrary, subject to Section 7.05(c), eBay shall be responsible for, and shall indemnify and hold harmless SpinCo and its Affiliates and each of their respective officers, directors and employees from and against, one hundred
percent (100%) of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution or the Distribution) of all or a portion of eBay’s stock
and/or its or its subsidiaries’ assets (including any capital stock of eBay AG) by any means whatsoever by any Person, (B) any act or failure to act by eBay or a member of the eBay Group described in Section 7.03 or (C) any
breach by eBay of its agreements and representations set forth in Section 7.01(a). 
 (c) Miscellaneous. 

(i) To the extent that any Tax-Related Loss is subject to indemnity under both Sections 7.05(a) and (b), responsibility
for such Tax-Related Loss shall be shared by eBay and SpinCo according to relative fault. 
 (ii) Notwithstanding
anything in Section 7.05(b) or (c)(i) or any other provision of this Agreement or the Separation and Distribution Agreement to the contrary: 

(A) with respect to (I) any Tax-Related Loss resulting from the application of Section 355(e) or Section 355(f)
of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in eBay or eBay AG) and (II) any other Tax-Related Loss resulting, in whole or in part, from an acquisition after the Distribution of any stock or assets of
SpinCo (or any SpinCo Affiliate) by any means whatsoever by any Person or any action or failure to act by SpinCo affecting the voting rights of SpinCo or 3P Holdings stock, SpinCo shall be responsible for, and shall indemnify and hold harmless eBay
and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss; and 

(B) for purposes of calculating the amount and timing of any Tax-Related Loss for which SpinCo is responsible under this
Section 7.05, Tax-Related Losses shall be calculated by assuming that eBay, the eBay Affiliated Group and each member of the eBay Group (I) pay Tax at the highest marginal corporate Tax rates in effect in each relevant taxable year and
(II) have no Tax Attributes in any relevant taxable year. 
 (iii) Notwithstanding anything in Section 7.05(a) or
(c)(i) or any other provision of this Agreement or the Separation and Distribution Agreement to the contrary: 
 (A) with
respect to (I) any Tax-Related Loss resulting from the application of Section 355(e) or Section 355(f) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in SpinCo or 3P Holdings) and (II) any
other Tax-Related Loss resulting, in whole or in part, from an acquisition after the Distribution of any stock or assets of eBay (or any eBay Affiliate) by any 

  
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means whatsoever by any Person, eBay shall be responsible for, and shall indemnify and hold harmless SpinCo and its Affiliates and each of their respective officers, directors and employees from
and against, one hundred percent (100%) of such Tax-Related Loss; and 
 (B) for purposes of calculating the amount and
timing of any Tax-Related Loss for which Bay is responsible under this Section 7.05, Tax-Related Losses shall be calculated by assuming that SpinCo, the SpinCo Group and each member of the SpinCo Group (I) pay Tax at the highest marginal
corporate Tax rates in effect in each relevant taxable year and (II) have no Tax Attributes in any relevant taxable year. 
 (d)
SpinCo shall pay eBay the amount of any Tax-Related Losses for which SpinCo is responsible under this Section 7.05: (A) in the case of Tax-Related Losses described in clause (i) of the definition of Tax-Related Losses no later
than two Business Days prior to the date eBay files, or causes to be filed, the applicable Tax Return for the year of the Contribution or Distribution, as applicable (the “Filing Date”) (provided that if such Tax-Related
Losses arise pursuant to a Final Determination described in clause (a), (b) or (c) of the definition of “Final Determination,” then SpinCo shall pay eBay no later than two Business Days prior to the due date for making payment
with respect to such Final Determination) and (B) in the case of Tax-Related Losses described in clause (ii) or (iii) of the definition of Tax-Related Losses, no later than two Business Days after the date eBay pays such Tax-Related
Losses. eBay shall pay SpinCo the amount of any Tax-Related Losses (described in clause (ii) or (iii) of the definition of Tax-Related Loss) for which eBay is responsible under this Section 7.05 no later than two Business Days after
the date SpinCo pays such Tax-Related Losses. Each Party shall have the right to review the calculation of any Tax-Related Losses prepared by the other Party, including any related workpapers and other supporting documentation. 

Section 7.06 Section 336(e) Election. If eBay determines, in its sole discretion, that a protective election under
Section 336(e) of the Code (a “Section 336(e) Election”) shall be made with respect to the Distribution, SpinCo shall (and shall cause the relevant member of the SpinCo Group to) join with eBay or the relevant member of the
eBay Group in the making of such election and shall take any action reasonably requested by eBay or that is otherwise necessary to give effect to such election (including making any other related election). If a Section 336(e) Election is made
with respect to the Distribution, then this Agreement shall be amended in such a manner as is determined by eBay in good faith to take into account such Section 336(e) Election (including by requiring that, in the event the Contribution and
Distribution fail to have Tax-Free Status and eBay is not entitled to indemnification for the Tax-Related Losses arising from such failure, SpinCo shall pay over to eBay any Tax Benefits actually realized in cash by the SpinCo Group or any member of
the SpinCo Group arising from the step-up in Tax basis resulting from the Section 336(e) Election); provided, such amounts payable shall be reduced by all reasonable costs incurred by SpinCo to amend any Tax Returns or other governmental
filings related to such Section 336(e) Election. 

  
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 Section 8. Assistance and Cooperation. 

Section 8.01 Assistance and Cooperation. 

(a) Each of the Companies shall provide (and cause its Affiliates to provide) the other and its agents, including accounting firms and
legal counsel, with such cooperation or information as such other Company reasonably requests in connection with (i) preparing and filing Tax Returns, (ii) determining the liability for and amount of any Taxes due (including estimated
Taxes) or the right to and amount of any refund of Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or judicial proceeding in respect of Taxes assessed or proposed to be assessed. Such cooperation shall include making
available, upon reasonable notice, all information and documents in their possession relating to the other Company and its Affiliates as provided in Section 9. Each of the Companies shall also make available to the other, as reasonably
requested and available, personnel (including employees and agents of the Companies or their respective Affiliates) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes. 

(b) Any information or documents provided under this Section 8 or Section 9 shall be kept confidential by the Company
receiving the information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative or judicial proceedings relating to Taxes. In no event shall either of the Companies
or any of its respective Affiliates be required to provide the other Company or any of its respective Affiliates or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any
Privilege. In addition, in the event that either Company determines that the provision of any information to the other Company or its Affiliates could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties
shall use reasonable best efforts to permit compliance with its obligations under this Section 8 or Section 9 in a manner that avoids any such harm or consequence. 

Section 8.02 Income Tax Return Information. SpinCo and eBay acknowledge that time is of the essence in relation to any request for
information, assistance or cooperation made by eBay or SpinCo pursuant to Section 8.01 or this Section 8.02. SpinCo and eBay acknowledge that failure to conform to the deadlines set forth herein or reasonable deadlines otherwise set by
eBay or SpinCo could cause irreparable harm. Each Company shall provide to the other Company information and documents relating to its Group required by the other Company to prepare Tax Returns. Any information or documents the Responsible Company
requires to prepare such Tax Returns shall be provided in such form as the Responsible Company reasonably requests and in sufficient time for the Responsible Company to file such Tax Returns on a timely basis. 

Section 8.03 Reliance by eBay. If any member of the SpinCo Group supplies information to a member of the eBay Group in connection
with a Tax liability and an officer of a member of the eBay Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of the eBay Group
identifying the information being so relied upon, the chief financial officer of SpinCo (or any officer of SpinCo as designated by the chief financial officer of SpinCo) shall certify in writing that to his or her knowledge (based upon consultation
with appropriate employees) the information so supplied is accurate and complete. SpinCo agrees to indemnify and hold harmless each member of the eBay Group and its directors, officers and employees from and against any fine, penalty, or other cost
or expense of any kind attributable to a member of the SpinCo Group having supplied, pursuant to this Section 8, a member of the eBay Group with inaccurate or incomplete information in connection with a Tax liability. 

  
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 Section 8.04 Reliance by SpinCo. If any member of the eBay Group supplies information
to a member of the SpinCo Group in connection with a Tax liability and an officer of a member of the SpinCo Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written
request of such member of the SpinCo Group identifying the information being so relied upon, the chief financial officer of eBay (or any officer of eBay as designated by the chief financial officer of eBay) shall certify in writing that to his or
her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. eBay agrees to indemnify and hold harmless each member of the SpinCo Group and its directors, officers and employees from and
against any fine, penalty, or other cost or expense of any kind attributable to a member of the eBay Group having supplied, pursuant to this Section 8, a member of the SpinCo Group with inaccurate or incomplete information in connection with a
Tax liability. 
 Section 9. Tax Records. 

Section 9.01 Retention of Tax Records. Each Company shall preserve and keep all Tax Records (including emails and other digitally
stored materials) exclusively relating to the assets and activities of its Group for Pre-Deconsolidation Periods and shall preserve and keep all other Tax Records relating to Taxes of the Groups for Pre-Deconsolidation Tax Periods, for so long as
the contents thereof may become material in the administration of any matter under the Code or other applicable Tax Law, but in any event until the later of (i) the expiration of any applicable statutes of limitations, or (ii) seven years
after the Deconsolidation Date (such later date, the “Retention Date”). After the Retention Date, each Company may dispose of such Tax Records upon 90 days’ prior written notice to the other Company. If, prior to
the Retention Date, a Company reasonably determines that any Tax Records which it would otherwise be required to preserve and keep under this Section 9 are no longer material in the administration of any matter under the Code or other
applicable Tax Law and the other Company agrees, then such first Company may dispose of such Tax Records upon 90 days’ prior notice to the other Company. Any notice of an intent to dispose given pursuant to this Section 9.01 shall include
a list of the Tax Records to be disposed of describing in reasonable detail each file, book, or other record accumulation being disposed. The notified Company shall have the opportunity, at its cost and expense, to copy or remove, within such 90-day
period, all or any part of such Tax Records, and the other Party will then dispose of the same Tax Records. 
 Section 9.02
Access to Tax Records. The Companies and their respective Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records to the extent reasonably required by the other
Company in connection with the preparation of financial accounting statements, audits, litigation, the preparation of Tax Returns, or the resolution of items under this Agreement. 

Section 10. Tax Contests. 

Section 10.01 Notice. Each of the Companies shall provide prompt notice, within five business days, by Federal Express or the
equivalent with tracking receipt, to the other of any communication from a Tax Authority regarding any pending or threatened Tax audit, assessment 

  
 - 31 - 

 
or proceeding or other Tax Contest for which it may be entitled to indemnification by the other Company hereunder. Such notice shall include copies of the pertinent portion of any written
communication from a Tax Authority and contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail. The failure of one Company to notify the other of such communication in accordance with the
immediately preceding sentences shall not relieve such other Company of any liability or obligation to pay such Tax or make indemnification payments under this Agreement, except to the extent that the failure timely to provide such notification
actually prejudices the ability of such other Company to contest such Tax liability or increases the amount of such Tax liability. 

Section 10.02 Control of Tax Contests. 

(a) Separate Company Tax Returns. 

(i) Pre-Deconsolidation Date and Straddle Period Separate Returns. In the case of any Tax Contest with respect to any
Separate Return (including any Separate Return with respect to Other Taxes) for any Tax Period ending on or prior to the Distribution Date or any Straddle Period, eBay (in the case of any such Separate Return filed with respect to any Person that,
following the Distribution, is a member of the eBay Group) or SpinCo (in the case of any such Separate Return filed with respect to any Person that, following the Distribution, is a member of the SpinCo group), as applicable, shall have exclusive
control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(d), 10.02(e), and 10.02(f)(ii) below. 

(ii) Post-Deconsolidation Date Separate Returns. In the case of any Tax Contest with respect to any Separate Return
(including any Separate Return with respect to Other Taxes) for any Tax Period beginning after the Distribution Date, the Responsible Company shall have exclusive control over the Tax Contest, including exclusive authority with respect to any
settlement of such Tax liability, subject to Section 10.02(e) below. 
 (b) eBay Federal Consolidated Income Tax Returns. In the
case of any Tax Contest with respect to any eBay Federal Consolidated Income Tax Return, eBay shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections
10.02(d) and 10.02(f)(i) below. 
 (c) eBay State Combined Income Tax Returns, eBay Foreign Combined Income Tax Returns, and Other
Joint Returns. In the case of any Tax Contest with respect to any eBay State Combined Income Tax Return, any eBay Foreign Combined Income Tax Return or any Tax Return with respect to Other Taxes that is not described in Section 10.02(a),
eBay shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Section 10.02(d) below. 

(d) SpinCo Rights. In the case of any Tax Contest with respect to any Tax Return described in Section 10.02(a), (b), or
(c) (other than any Separate Return described in Section 10.02(a)(ii)), if (x) as a result of such Tax Contest, SpinCo could reasonably be expected to become liable for an amount of Tax in excess of $1 million and (y) eBay
has control of such Tax Contest pursuant to Section 10.02(a), (b), or (c), as applicable, then (i) eBay shall consult with 

  
 - 32 - 

 
SpinCo reasonably in advance of taking any significant action in connection with such Tax Contest, (ii) eBay shall consult with SpinCo and offer SpinCo a reasonable opportunity to comment
before submitting any written materials prepared or furnished in connection with such Tax Contest, (iii) eBay shall defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax
Contest, (iv) SpinCo shall be entitled to participate in such Tax Contest and receive copies of any written materials relating to such Tax Contest received from the relevant Tax Authority, and (v) eBay shall not settle, compromise or
abandon any such Tax Contest without obtaining the prior written consent of SpinCo, which consent shall not be unreasonably withheld. 

(e) eBay Rights. In the case of any Tax Contest with respect to any Tax Return described in Section 10.02(a), if (x) as a
result of such Tax Contest, eBay could reasonably be expected to become liable for an amount of Tax in excess of $1 million and (y) SpinCo has the right to control such Tax Contest pursuant to Section 10.02(a), then (i) SpinCo shall
consult with eBay reasonably in advance of taking any significant action in connection with such Tax Contest, (ii) SpinCo shall consult with eBay and offer eBay a reasonable opportunity to comment before submitting any written materials
prepared or furnished in connection with such Tax Contest, (iii) SpinCo shall defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax Contest, (iv) eBay shall be entitled to
participate in such Tax Contest and receive copies of any written materials relating to such Tax Contest received from the relevant Tax Authority, and (v) SpinCo shall not settle, compromise or abandon any such Tax Contest without obtaining the
prior written consent of eBay, which consent shall not be unreasonably withheld. For the avoidance of doubt, this Section 10.02(e) shall apply to any Tax Contest with respect to a SpinCo Federal Consolidated Income Tax Return if, as a result of
such Tax Contest, eBay could reasonably be expected to become liable for Taxes pursuant to Section 2.02(b) or (c). 
 (f)
Distribution-Related Tax Contests. 
 (i) In the event of any Distribution-Related Tax Contest as a result of
which SpinCo could reasonably be expected to become liable for any Tax or Tax-Related Losses and which eBay has the right to administer and control pursuant to Section 10.02(b) above, (A) eBay shall consult with SpinCo reasonably in
advance of taking any significant action in connection with such Tax Contest, (B) eBay shall offer SpinCo a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Contest,
(C) eBay shall defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax Contest, and (D) eBay shall provide SpinCo copies of any written materials relating to such Tax
Contest received from the relevant Tax Authority. Notwithstanding anything in the preceding sentence to the contrary, the final determination of the positions taken, including with respect to settlement or other disposition, in any
Distribution-Related Tax Contest shall be made in the sole discretion of eBay and shall be final and not subject to the dispute resolution provisions of Article VII of the Separation and Distribution Agreement. 

(ii) In the event of any Distribution-Related Tax Contest with respect to any SpinCo Separate Return, (A) SpinCo
shall consult with eBay reasonably in advance of taking any significant action in connection with such Tax Contest, (B) SpinCo shall 

  
 - 33 - 

 
consult with eBay and offer eBay a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Contest, (C) SpinCo shall
defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax Contest, (D) eBay shall be entitled to participate in such Tax Contest and receive copies of any written materials
relating to such Tax Contest received from the relevant Tax Authority, and (E) SpinCo shall not settle, compromise or abandon any such Tax Contest without obtaining the prior written consent of eBay, which consent shall not be unreasonably
withheld. 
 (g) Power of Attorney. 

(i) Each member of the SpinCo Group shall execute and deliver to eBay (or such member of the eBay Group as eBay shall
designate) any power of attorney or other similar document reasonably requested by eBay (or such designee) in connection with any Tax Contest (as to which eBay is the Controlling Party) described in this Section 10. 

(ii) Each member of the eBay Group shall execute and deliver to SpinCo (or such member of the SpinCo Group as SpinCo
shall designate) any power of attorney or other similar document reasonably requested by SpinCo (or such designee) in connection with any Tax Contest (as to which SpinCo is the Controlling Party) described in this Section 10. 

Section 11. Effective Date; Termination of Prior Intercompany Tax Allocation Agreements. This Agreement shall be effective
as of the Effective Time. As of the Effective Time, (i) all prior intercompany Tax allocation agreements or arrangements solely between or among eBay and/or any of its Subsidiaries, on the one hand, and SpinCo and/or any of its Subsidiaries, on
the other hand (including, for the avoidance of doubt, the Tax Allocation Agreement, by and among eBay and certain of its Subsidiaries, dated as of January 1, 2003), shall be terminated, and (ii) amounts due under such agreements as of the
date on which the Effective Time occurs shall be settled. Upon such termination and settlement, no further payments by or to eBay or any of its Subsidiaries or by or to SpinCo or any of its Subsidiaries, with respect to such agreements shall be
made, and all other rights and obligations resulting from such agreements between the Companies and their Affiliates shall cease at such time. Any payments pursuant to such agreements shall be disregarded for purposes of computing amounts due under
this Agreement; provided that to the extent appropriate, payments made pursuant to such agreements shall be credited to SpinCo or eBay, respectively, in computing their respective obligations pursuant to this Agreement, in the event that such
payments relate to a Tax liability that is the subject matter of this Agreement for a Tax Period that is the subject matter of this Agreement. 

Section 12. Survival of Obligations. The representations, warranties, covenants and agreements set forth in this Agreement shall
be unconditional and absolute and shall remain in effect without limitation as to time. 
 Section 13. Treatment of Payments; Tax
Gross Up. 
 Section 13.01 Treatment of Tax Indemnity and Tax Benefit Payments. In the absence of any change in Tax
treatment under the Code or other applicable Tax Law, for all Income Tax 

  
 - 34 - 

 
purposes, the Companies agree to treat, and to cause their respective Affiliates to treat, (i) any indemnity payment required by this Agreement or by the Separation and Distribution
Agreement as either a contribution by eBay to SpinCo or a distribution by SpinCo to eBay, as the case may be, occurring immediately prior to the Distribution; and (ii) any payment of interest or State Income Taxes by or to a Tax Authority, as
taxable or deductible, as the case may be, to the Company entitled under this Agreement to retain such payment or required under this Agreement to make such payment. 

Section 13.02 Tax Gross Up. If notwithstanding the manner in which payments described in Section 13.01(i) were reported,
there is an adjustment to the Tax liability of a Company as a result of its receipt of a payment pursuant to this Agreement or the Separation and Distribution Agreement, such payment shall be appropriately adjusted so that the amount of such
payment, reduced by the amount of all Income Taxes payable with respect to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes), shall equal the amount of the payment which the
Company receiving such payment would otherwise be entitled to receive. 
 Section 13.03 Interest. Anything herein to the
contrary notwithstanding, to the extent one Company (“Indemnitor”) makes a payment of interest to another Company (“Indemnitee”) under this Agreement with respect to the period from the
date that the Indemnitee made a payment of Tax to a Tax Authority to the date that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the extent
provided by law) and as interest income by the Indemnitee (includible in income to the extent provided by law). The amount of the payment shall not be adjusted to take into account any associated Tax Benefit to the Indemnitor or increase in Tax to
the Indemnitee. 
 Section 14. Disagreements. The Companies desire that collaboration will continue between them.
Accordingly, they will try, and they will cause their respective Group members to try, to resolve in good faith all disagreements regarding their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance
thereof, in the event of any dispute or disagreement (other than a High-Level Dispute) (a “Tax Advisor Dispute”) between any member of the eBay Group and any member of the SpinCo Group as to the interpretation of any provision of
this Agreement or the performance of obligations hereunder, the Tax departments of the Companies shall negotiate in good faith to resolve the Tax Advisor Dispute. If such good faith negotiations do not resolve the Tax Advisor Dispute, then the
matter, upon written request of either Company, will be referred for resolution to the Escalation Committee, which will make a good faith effort to resolve the Tax Advisor Dispute pursuant to the procedures set forth in Article VII of the Separation
and Distribution Agreement. If the Escalation Committee does not agree to a resolution of a Tax Advisor Dispute within thirty (30) days after the reference of the Tax Advisor Dispute to it, then the matter will be referred to a Tax Advisor
acceptable to each of the Companies. The Tax Advisor may, in its discretion, obtain the services of any third-party appraiser, accounting firm or consultant that the Tax Advisor deems necessary to assist it in resolving such disagreement. The Tax
Advisor shall furnish written notice to the Companies of its resolution of any such Tax Advisor Dispute as soon as practical, but in any event no later than 45 days after its acceptance of the matter for resolution. Any such resolution by the Tax
Advisor will be conclusive and binding on the Companies. Following receipt 

  
 - 35 - 

 
of the Tax Advisor’s written notice to the Companies of its resolution of the Tax Advisor Dispute, the Companies shall each take or cause to be taken any action necessary to implement such
resolution of the Tax Advisor. In accordance with Section 16, each Company shall pay its own fees and expenses (including the fees and expenses of its representatives) incurred in connection with the referral of the matter to the Tax Advisor.
All fees and expenses of the Tax Advisor in connection with such referral shall be shared equally by the Companies. Any High-Level Dispute shall be resolved pursuant to the procedures set forth in Article VII of the Separation and Distribution
Agreement. Nothing in this Section 14 will prevent either Company from seeking injunctive relief if any delay resulting from the efforts to resolve the Tax Advisor Dispute through the Escalation Committee and the Tax Advisor (or any delay
resulting from the efforts to resolve any High-Level Dispute through the procedures set forth in Article VII of the Separation and Distribution Agreement) could result in serious and irreparable injury to either Company. Notwithstanding anything to
the contrary in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement, eBay and SpinCo are the only members of their respective Group entitled to commence a dispute resolution procedure under this Agreement, and each
of eBay and SpinCo will cause its respective Group members not to commence any dispute resolution procedure other than through such party as provided in this Section 14. 

Section 15. Late Payments. Any amount owed by one party to another party under this Agreement which is not paid when due shall
bear interest at the Prime Rate plus two percent, compounded semiannually, from the due date of the payment to the date paid. To the extent interest required to be paid under this Section 15 duplicates interest required to be paid under any
other provision of this Agreement, interest shall be computed at the higher of the interest rate provided under this Section 15 or the interest rate provided under such other provision. 

Section 16. Expenses. Except as otherwise provided in this Agreement, each party and its Affiliates shall bear their own expenses
incurred in connection with preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement. 

Section 17. General Provisions. 

Section 17.01 Addresses and Notices. All notices, requests, claims, demands or other communications under this Agreement shall be
in writing, together with a copy by electronic mail (which shall not constitute notice), and shall be given or made (and shall be deemed to have been duly given or made upon acknowledgment of receipt) by delivery in person, by overnight courier
service, or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this
Section 17.01):  
 If to eBay: 

eBay Inc. 
 2065 Hamilton Avenue

 San Jose, California 95125 

Attention: General counsel 

Email: mhuber@ebay.com 

  
 - 36 - 

 If to SpinCo: 

PayPal Holdings, Inc. 
 2211 North
First Street 
 San Jose, California 95131 

Attention: General Counsel 

Email: apentland@paypal.com 
 A Party may, by
notice to the other Party, change the address to which such notices are to be given. 
 Section 17.02 Assignability. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns; provided, that neither Party nor any such party thereto may assign its rights or delegate its obligations under this
Agreement without the express prior written consent of the other Party hereto. Notwithstanding the foregoing, no such consent shall be required for the assignment of a party’s rights and obligations under this Agreement and the Ancillary
Agreements (except as may be otherwise provided in any such Ancillary Agreement) in whole (i.e., the assignment of a party’s rights and obligations under this Agreement and all Ancillary Agreements all at the same time) in connection
with a change of control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant party thereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to
the other Party. 
 Section 17.03 Waiver. Waiver by a Party of any default by the other Party of any provision of this
Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other Party. No failure or delay by a Party in exercising any right, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege. 

Section 17.04 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is
determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and
equitable provision to effect the original intent of the Parties. 
 Section 17.05 Authority. eBay represents on behalf
of itself and each other member of the eBay Group, and SpinCo represents on behalf of itself and each other member of the SpinCo Group, as follows: (i) each such Person has the requisite corporate or other power and authority and has taken all
corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and (ii) this Agreement has been duly executed and delivered by it and constitutes a valid and
binding agreement of it enforceable in accordance with the terms thereof. 

  
 - 37 - 

 Section 17.06 Further Action. The parties shall execute and deliver all documents,
provide all information, and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and their Affiliates and representatives of such
powers of attorney or other authorizing documentation as is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 10. 

Section 17.07 Integration. This Agreement, the Ancillary Agreements and the Exhibits, Schedules and appendices hereto and thereto
contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter,
and there are no agreements or understandings between the Parties other than those set forth or referred to herein or therein. In the event of any inconsistency between this Agreement, the Separation and Distribution Agreement, any other agreements
relating to the transactions contemplated by the Separation and Distribution Agreement, or the Tax Allocation Agreement, with respect to matters addressed herein, the provisions of this Agreement shall control. 

Section 17.08 Construction. The language in all parts of this Agreement shall in all cases be construed according to its fair
meaning and shall not be strictly construed for or against any party. The captions, titles and headings included in this Agreement are for convenience only, and do not affect this Agreement’s construction or interpretation. Unless otherwise
indicated, all “Section” references in this Agreement are to sections of this Agreement. 
 Section 17.09 No Double
Recovery. No provision of this Agreement shall be construed to provide an indemnity or other recovery for any costs, damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or
under any other agreement or action at law or equity. Unless expressly required in this Agreement, a party shall not be required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies
provided in this Agreement. 
 Section 17.10 Counterparts. This Agreement may be executed in one or more counterparts,
all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party. Each Party acknowledges that it and each other Party is
executing certain of the Ancillary Agreements by facsimile, stamp or mechanical signature, and that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by
facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this Agreement. Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether
delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or
delivery is not adequate to bind such Party to the same extent as if it were signed manually and delivered in person and agrees that, at the reasonable request of the other Party at any time, it will as promptly as reasonably practicable cause this
Agreement to be manually executed (such execution to be as of the date of the initial date thereof) and delivered in person, by mail or by courier. 

  
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 Section 17.11 Governing Law. This Agreement (and any claims or disputes arising out
of or related hereto or to the transactions contemplated hereby or to the inducement of any party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be
governed by and construed and interpreted in accordance with the Laws of the State of Delaware irrespective of the choice of laws principles of the State of Delaware including all matters of validity, construction, effect, enforceability,
performance and remedies. 
 Section 17.12 Jurisdiction. If any dispute arises out of or in connection with this
Agreement, except as expressly contemplated by another provision of this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive
jurisdiction of federal and state courts located in Delaware, (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT
TO TRIAL OR ADJUDICATION BY JURY. 
 Section 17.13 Amendment. No provisions of this Agreement shall be deemed waived,
amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or
modification. 
 Section 17.14 SpinCo Subsidiaries. If, at any time, SpinCo acquires or creates one or more subsidiaries
that are includable in the SpinCo Group, they shall be subject to this Agreement and all references to the SpinCo Group herein shall thereafter include a reference to such subsidiaries. 

Section 17.15 Successors. This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of
assets, or otherwise, to any of the parties hereto (including but not limited to any successor of eBay, SpinCo or PayPal succeeding to the Tax attributes of either under Section 381 of the Code), to the same extent as if such successor had been
an original party to this Agreement. 
 Section 17.16 Injunctions. The parties acknowledge that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the
provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in equity. 

  
 - 39 - 

 IN WITNESS WHEREOF, each party has caused this Agreement to be executed on its behalf by a duly authorized
officer on the date first set forth above. 
  

			
	EBAY INC.
		
	By: 	 	 /s/ John J. Donahoe

	Name:	 	 John J. Donahoe

	Title:	 	 President and Chief Executive Officer

	
	PAYPAL HOLDINGS, INC.
		
	By: 	 	 /s/ Daniel H. Schulman

	Name:	 	 Daniel H. Shulman

	Title:	 	 President and CEO-Designee

 [Signature Page to Tax Matters Agreement] 

  
 - 40 -EX-10.4

 Exhibit 10.4 

EMPLOYEE MATTERS AGREEMENT 
 BY
AND BETWEEN 
 EBAY INC. 
 AND

 PAYPAL HOLDINGS, INC. 
 DATED
AS OF JULY 17, 2015 
  

 TABLE OF CONTENTS 

 

							
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 Section 1.01.
	 	Definitions	  	 	1	  
	 Section 1.02.
	 	Interpretation	  	 	8	  
		
	 ARTICLE II GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	  	 	8	  
			
	 Section 2.01.
	 	General Principles	  	 	8	  
	 Section 2.02.
	 	Service Credit	  	 	10	  
	 Section 2.03.
	 	Benefit Plans	  	 	10	  
	 Section 2.04.
	 	Plan Administration and Non-U.S. Benefit Plans	  	 	11	  
	 Section 2.05.
	 	Individual Agreements	  	 	13	  
	 Section 2.06.
	 	Collective Bargaining	  	 	13	  
	 Section 2.07.
	 	Non-U.S. Regulatory Compliance	  	 	13	  
		
	 ARTICLE III ASSIGNMENT OF EMPLOYEES
	  	 	14	  
			
	 Section 3.01.
	 	Employees	  	 	14	  
		
	 ARTICLE IV EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION
	  	 	15	  
			
	 Section 4.01.
	 	Generally; Definitions	  	 	15	  
	 Section 4.02.
	 	Equity Incentive Awards	  	 	18	  
	 Section 4.03.
	 	Employee Stock Purchase Plans	  	 	28	  
	 Section 4.04.
	 	Non-Equity Incentive Plans	  	 	29	  
	 Section 4.05.
	 	Director Compensation	  	 	30	  
		
	 ARTICLE V RETIREMENT PLANS
	  	 	31	  
			
	 Section 5.01.
	 	PayPal 401(k) Plan	  	 	31	  
	 Section 5.02.
	 	Non-U.S. Retirement Plans	  	 	32	  
		
	 ARTICLE VI NONQUALIFIED DEFERRED COMPENSATION PLAN
	  	 	33	  
			
	 Section 6.01.
	 	PayPal Deferred Compensation Plan	  	 	33	  
	 Section 6.02.
	 	Participation; Distributions	  	 	33	  
		
	 ARTICLE VII WELFARE BENEFIT PLANS
	  	 	34	  
			
	 Section 7.01.
	 	Welfare Plans	  	 	34	  
	 Section 7.02.
	 	COBRA	  	 	36	  
	 Section 7.03.
	 	Paid Time Off, Holidays and Leaves of Absence	  	 	37	  
	 Section 7.04.
	 	Severance and Unemployment Compensation	  	 	37	  
	 Section 7.05.
	 	Sabbatical Plans and Sabbatical Trusts	  	 	37	  
	 Section 7.06.
	 	Workers’ Compensation	  	 	38	  
	 Section 7.07.
	 	Insurance Contracts	  	 	38	  

  
 -i- 

							
	 Section 7.08.
	 	Third-Party Vendors	  	 	38	  
	 Section 7.09.
	 	Fringe Benefits	  	 	38	  
		
	 ARTICLE VIII NON-U.S. EMPLOYEES
	  	 	39	  
		
	 ARTICLE IX MISCELLANEOUS
	  	 	39	  
			
	 Section 9.01.
	 	Employee Records	  	 	39	  
	 Section 9.02.
	 	Preservation of Rights to Amend	  	 	40	  
	 Section 9.03.
	 	Fiduciary Matters	  	 	41	  
	 Section 9.04.
	 	Further Assurances	  	 	41	  
	 Section 9.05.
	 	Counterparts; Entire Agreement; Corporate Power	  	 	41	  
	 Section 9.06.
	 	Governing Law	  	 	42	  
	 Section 9.07.
	 	Assignability	  	 	42	  
	 Section 9.08.
	 	Third-Party Beneficiaries	  	 	42	  
	 Section 9.09.
	 	Notices	  	 	42	  
	 Section 9.10.
	 	Severability	  	 	43	  
	 Section 9.11.
	 	Force Majeure	  	 	43	  
	 Section 9.12.
	 	Headings	  	 	43	  
	 Section 9.13.
	 	Survival of Covenants	  	 	44	  
	 Section 9.14.
	 	Waivers of Default	  	 	44	  
	 Section 9.15.
	 	Dispute Resolution	  	 	44	  
	 Section 9.16.
	 	Specific Performance	  	 	44	  
	 Section 9.17.
	 	Amendments	  	 	44	  
	 Section 9.18.
	 	Interpretation	  	 	44	  
	 Section 9.19.
	 	Limitations of Liability	  	 	45	  
	 Section 9.20.
	 	Mutual Drafting	  	 	45	  

  

			
	 Schedule 1.01(a)
	  	eBay Fringe Benefit Plans
	 Schedule 1.01(b)
	  	eBay Welfare Plans
	 Schedule 2.03(a)
	  	eBay Benefit Plans to Be Replicated by PayPal (subject to the terms of the Agreement)
	 Schedule 2.03(b)
	  	eBay Benefit Plans Not Required to Be Replicated by PayPal

  
 -ii- 

 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT, dated as of July 17, 2015 (this “Agreement”), is by and between eBay Inc., a Delaware
corporation (“eBay”), and PayPal Holdings, Inc., a Delaware corporation (“PayPal”). 
 R E C I T A L S:

 WHEREAS, the board of directors of eBay (the “eBay Board”) has determined that it is in the best interests of eBay and
its shareholders to create a new publicly traded company that shall operate the PayPal Business (as defined below); 
 WHEREAS, in
furtherance of the foregoing, the eBay Board has determined that it is appropriate and desirable to separate the PayPal Business from the eBay Business (the “Separation”) and, following the Separation, make a distribution, on a pro
rata basis, to holders of eBay Shares on the Record Date of all the outstanding PayPal Shares owned by eBay (the “Distribution”); 

WHEREAS, in order to effectuate the Separation and Distribution, eBay and PayPal have entered into a Separation and Distribution Agreement,
dated as of July 17, 2015 (the “Separation and Distribution Agreement”); and 
 WHEREAS, in addition to the matters
addressed by the Separation and Distribution Agreement, the Parties desire to enter into this Agreement to set forth the terms and conditions of certain employment, compensation and benefit matters that have been agreed by the Parties in connection
with the Separation. 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 

ARTICLE I 
 DEFINITIONS 

Section 1.01. Definitions . For purposes of this Agreement, the following terms shall have the meanings set forth below.
Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to them in the Separation and Distribution Agreement. 

“Action” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Affiliate” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Agreement” shall have the meaning set forth in the preamble to this Agreement and shall include all Schedules hereto and all
amendments, modifications, and changes hereto entered into pursuant to Section 9.17. 

 “Ancillary Agreement” shall have the meaning set forth in the Separation and
Distribution Agreement. 
 “Assets” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Benefit Plan” shall mean any contract, agreement, policy, practice, program, plan, trust, commitment or arrangement
providing for benefits, perquisites, fringe benefits or compensation of any nature from an employer to any Employee, or to any family member, dependent, or beneficiary of any such Employee, including cash or deferred arrangement plans, profit
sharing plans, pension plans, thrift plans, supplemental pension plans and health and welfare plans, stock option, stock purchase, restricted stock, restricted stock units, deferred stock award and other equity and/or equity-based compensation plans
and contracts, commitments and arrangements providing for terms of employment, severance benefits, change of control protections or benefits, travel and accident, life, accidental death and dismemberment, disability and accident insurance, tuition
reimbursement, travel reimbursement, paid time off, sick, personal or bereavement days, leaves of absences and holidays and sabbatical leave; provided, however, the term “Benefit Plan” does not include any
government-sponsored benefits, such as workers’ compensation, government-sponsored retirement plans, unemployment or any similar plans, programs or policies or Individual Agreements. 

“COBRA” shall mean the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et
seq. of ERISA and at Section 4980B of the Code. 
 “Code” shall have the meaning set forth in the Separation and
Distribution Agreement. 
 “Continuing eBay Director” shall mean each member of the eBay Board, as of the Effective Time,
who continues to serve on the eBay Board immediately after the Effective Time. 
 “Distribution” shall have the meaning set
forth in the recitals to this Agreement. 
 “Distribution Date” shall have the meaning set forth in the Separation and
Distribution Agreement. 
 “eBay” shall have the meaning set forth in the preamble to this Agreement. 

“eBay 401(k) Plan” shall mean the eBay Inc. 401(k) Savings Plan, as amended and restated effective January 1, 2015. 

“eBay 401(k) Trust” shall have the meaning set forth in Section 5.01(b). 

“eBay Benefit Plan” shall mean any Benefit Plan established, sponsored or maintained by eBay or any of its Subsidiaries
immediately prior to the Effective Time, excluding any PayPal Benefit Plan. 
 “eBay Board” shall have the meaning set
forth in the recitals to this Agreement. 

  
 -2- 

 “eBay Business” shall have the meaning set forth in the Separation and
Distribution Agreement. 
 “eBay Change of Control” shall have the meaning set forth in Section 4.02(g). 

“eBay Compensation Committee” shall mean the Compensation Committee of the eBay Board. 

“eBay Deferred Compensation Plan” shall mean the eBay Inc. Deferred Compensation Plan, effective January 1, 2008. 

“eBay Equity Plan” shall mean any equity compensation plan sponsored or maintained by eBay immediately prior to the Effective
Time, including the eBay Inc. 2008 Equity Incentive Award Plan, eBay Inc. 2003 Deferred Stock Unit Plan, eBay Inc. 2001 Equity Incentive Plan eBay Inc. 1999 Global Equity Incentive Plan eBay Inc. 1998 Directors Stock Option Plan, eBay Inc. 1998
Equity Incentive Plan, Braintree, Inc. 2011 Equity Incentive Plan, Bill Me Later 2000 Stock Incentive Plan, NPX Technologies LTD Amended and Restated 2005 Share Option Plan, CyberActive Security LTD. 2014 Israeli Employee Share Option Plan,
Paydiant, Inc. 2011 Stock Option and Grant Plan, Paydiant Inc. Stock Restriction Agreements, Hunch Inc. 2007 Stock Plan, Magento, Inc. 2010 Equity Incentive Plan, SHUTL Limited Enterprise Management Incentive Scheme, StubHub, Inc. 2000 Stock Plan,
Venmo Inc. 2010 Equity Compensation Plan, uLocate Communications, Inc. 2003 Stock Option and Incentive Plan, and Zong S.A. Equity Incentive Plan. 

“eBay Fringe Benefit Plans” shall mean the eBay fringe benefit plans as in effect immediately prior to the Effective Time and
listed on Schedule 1.01(a). 
 “eBay Group” shall have the meaning set forth in the Separation and Distribution
Agreement. 
 “eBay Group Employees” shall have the meaning set forth in Section 3.01(a). 

“eBay HSA” shall have the meaning set forth in Section 7.01(c). 

“eBay Incentive Plans” shall mean the eBay Incentive Plan and any other non-equity based incentive plan maintained by eBay as
in effect immediately prior to the Effective Time and listed on Schedule 1.01(a). 
 “eBay IP” shall have the
meaning set forth in the Separation and Distribution Agreement. 
 “eBay Liability” shall have the meaning set forth in the
Separation and Distribution Agreement. 
 “eBay Non-U.S. Retirement Plan” means an eBay Benefit Plan, the primary purpose
of which is to provide retirement benefits to eBay Group Employees and/or Former eBay Group Employees who are or were employed by a non-U.S. Subsidiary of eBay. 

  
 -3- 

 “eBay Sabbatical Plans” shall mean the eBay Inc. Sabbatical Plan, as amended and
restated effective December 1, 2014, and any other sabbatical policies or programs maintained by eBay outside of the United States, as applicable, as in effect immediately prior to the Effective Time and listed on Schedule 1.01(b).

 “eBay Sabbatical Trusts” shall mean the eBay Inc. Sabbatical Plan Trust Agreement effective June 1, 2005, and any
other trusts or other funding arrangements maintained for the benefit of any eBay Sabbatical Plans outside of the United States, as applicable, as in effect immediately prior to the Effective Time and listed on Schedule 1.01(b). 

“eBay Welfare Plan” shall mean any Welfare Plan established, sponsored, maintained or contributed to by eBay or any of its
Subsidiaries for the benefit of Employees or Former Employees, including each Welfare Plan listed on Schedule 1.01(b) but excluding any PayPal Welfare Plan. 

“Effective Time” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Employee” shall mean any eBay Group Employee or PayPal Group Employee. 

“Employment Taxes” shall have the meaning set forth in Section 2.01(e). 

“ERISA” shall mean the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated
thereunder. 
 “Exchange Act” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Force Majeure” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Former eBay Group Employee” shall mean any individual who is a former employee of the eBay Group as of the Effective Time
and who is not a Former PayPal Group Employee. 
 “Former Employees” shall mean Former eBay Group Employees and Former
PayPal Group Employees. 
 “Former PayPal Group Employee” shall mean (i) any individual identified as a Former PayPal
Group Employee on the list previously prepared by eBay, and (ii) any individual who is a former employee of eBay or any of its Subsidiaries or former Subsidiaries as of the Effective Time, in each case, whose most recent employment with eBay
was with a member of the PayPal Group or the PayPal Business. 
 “Governmental Authority” shall have the meaning set forth
in the Separation and Distribution Agreement. 

  
 -4- 

 “HIPAA” shall mean the U.S. Health Insurance Portability and Accountability Act
of 1996, as amended, and the regulations promulgated thereunder. 
 “Individual Agreement” shall mean any individual
(i) offer letter or employment contract, (ii) retention, severance or change of control agreement, (iii) expatriate (including any international assignee) contract or agreement (including agreements and obligations regarding
repatriation, relocation, equalization of taxes and living standards in the host country), (iv) proprietary information and/or inventions agreement or (v) any agreement containing restrictive covenants (including confidentiality,
intellectual property assignment, license, waiver and disclosure provisions, non-competition and non-solicitation provisions) between a member of the eBay Group or PayPal Group and a PayPal Group Employee or any Former PayPal Group Employee, or
between a member of the eBay Group or PayPal Group and an eBay Group Employee or any Former eBay Group Employee, as applicable, as in effect immediately prior to the Effective Time. 

“Intellectual Property Matters Agreement” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Intellectual Property Rights” shall have the meaning set forth in the Separation and Distribution Agreement. 

“IRS” shall mean the United States Internal Revenue Service. 

“Law” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Liabilities” shall have the meaning set forth in the Separation and Distribution Agreement. 

“NASDAQ” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Non-U.S. eBay Benefit Plan” shall mean an eBay Benefit Plan established, maintained, or contributed to by a member of the
eBay Group that is primarily for the benefit of eBay Group Employees who are or were employed by a non-U.S. Subsidiary of eBay. 

“Non-U.S. PayPal Benefit Plan” shall mean a PayPal Benefit Plan established, maintained, or contributed to by a member of the
PayPal Group that is primarily for the benefit of PayPal Group Employees who are or were employed by a non-U.S. Subsidiary of PayPal or eBay. 

“Offering Period” shall have the meaning set forth in the eBay ESPP or PayPal ESPP, as the context requires. 

“Party” shall mean a party to this Agreement. 

“PayPal” shall have the meaning set forth in the preamble to this Agreement. 

  
 -5- 

 “PayPal 401(k) Plan” shall mean the PayPal 401(k) Savings Plan, to be adopted by
PayPal prior to or on the Distribution as described in Section 5.01. 
 “PayPal 401(k) Trust” shall have the
meaning set forth in Section 5.01(a). 
 “PayPal Benefit Plan” shall mean any Benefit Plan established,
sponsored, maintained or contributed to by a member of the PayPal Group as of or after the Effective Time. 
 “PayPal
Board” shall mean the Board of Directors of PayPal. 
 “PayPal Business” shall have the meaning set forth in the
Separation and Distribution Agreement. 
 “PayPal Change of Control” shall have the meaning set forth in
Section 4.02(g). 
 “PayPal Compensation Committee” shall mean the Compensation Committee of the PayPal Board.

 “PayPal Deferred Compensation Plan” shall mean a PayPal Deferred Compensation Plan established pursuant to
Section 6.01. 
 “PayPal Designees” shall have the meaning set forth in the Separation and Distribution
Agreement. 
 “PayPal Fringe Benefit Plans” shall mean the PayPal fringe benefit plans to be established by PayPal pursuant
to Section 7.09. 
 “PayPal Group” shall have the meaning set forth in the Separation and Distribution
Agreement. 
 “PayPal Group Employees” shall have the meaning set forth in Section 3.01(a). 

“PayPal HSA” shall have the meaning set forth in Section 7.01(c). 

“PayPal Incentive Plans” shall mean the PayPal Incentive Plans established pursuant to Section 4.04(a). 

“PayPal IP” shall have the meaning set forth in the Separation and Distribution Agreement. 

“PayPal Liabilities” shall have the meaning set forth in the Separation and Distribution Agreement. 

“PayPal Non-U.S. Retirement Plan” means a PayPal Benefit Plan, the primary purpose of which is to provide retirement benefits
to PayPal Group Employees and/or Former PayPal Group Employees who are or were employed by a non-U.S. Subsidiary of PayPal or eBay. 

“PayPal Sabbatical Plans” shall mean the PayPal Sabbatical Plans established by PayPal pursuant to Section 7.05.

  
 -6- 

 “PayPal Sabbatical Trusts” shall mean the Sabbatical Trusts established by
PayPal pursuant to Section 7.05. 
 “PayPal Welfare Plans” shall mean the Welfare Plans established, sponsored,
maintained or contributed to by any member of the PayPal Group for the benefit of PayPal Group Employees and Former PayPal Group Employees. 

“Person” shall have the meaning set forth in the Separation and Distribution Agreement. 

“QDRO” shall mean a qualified domestic relations order within the meaning of Section 206(d) of ERISA and
Section 414(p) of the Code. 
 “Qualification Requirements” shall mean, in the aggregate, the tax qualification
requirements of Section 401(a) of the Code, the tax exemption requirements of Section 501(a) of the Code, and the requirements described in Sections 401(k) and 401(m) of the Code in respect of a plan intended to meet such
requirements. 
 “Record Date” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Securities Act” shall mean the U.S. Securities Act of 1933, as amended, together with the rules and regulations promulgated
thereunder. 
 “Separation” shall have the meaning set forth in the recitals to this Agreement. 

“Separation and Distribution Agreement” shall have the meaning set forth in the recitals to this Agreement. 

“Subsidiary” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Third Party” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Tax” shall have the meaning set forth in Section 2.01(e). 

“Tax Matters Agreement” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Transferred Account Balances” shall have the meaning set forth in Section 7.01(d). 

“Transferring Director” shall mean each member of the PayPal Board, as of the Effective Time, who served on the eBay Board
immediately prior to the Effective Time. 
 “Transitioning eBay Group Employee” shall mean an eBay Group Employee covered
under the Transition Success and Retention Program, whose last date of employment with 

  
 -7- 

 
the eBay Group is the Distribution Date, and who is not becoming a PayPal Group Employee upon the Separation. 

“Transition Services Agreement” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Transition Success and Retention Program” shall mean the Transition Success and Retention Program adopted by the eBay Board
on December 15, 2014. 
 “U.S.” shall mean the United States of America. 

“Welfare Plan” shall mean any “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria
plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental, vision, mental health and substance abuse), disability benefits, or life,
accidental death and dismemberment, and business travel insurance, pre-tax premium conversion benefits, dependent care assistance programs, employee assistance programs, paid time-off programs, contribution funding toward a health savings account,
flexible spending accounts or severance. 
 Section 1.02. Interpretation. Section 10.16 of the Separation and Distribution
Agreement is hereby incorporated by reference. 
 ARTICLE II 

GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 

Section 2.01. General Principles. 

(a) Acceptance and Assumption of PayPal Liabilities. On or prior to the Effective Time, but in any case prior to the Distribution, and
except as expressly set forth in this Agreement, PayPal and the applicable PayPal Designees shall accept, assume and agree to faithfully perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms (each
of which shall be considered a PayPal Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom
such Liabilities are asserted or determined (including any Liabilities arising out of claims made by eBay’s or PayPal’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of
the eBay Group or the PayPal Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of
the eBay Group or the PayPal Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates: 

(i) any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), equity compensation
(as the same may be modified by this Agreement), commissions, bonuses and any other employee compensation or benefits payable, provided or made available to or on behalf of any PayPal Group Employees and Former PayPal Group Employees after the
Effective Time, without regard to when such wages, salaries, incentive compensation, equity compensation, commissions, 

  
 -8- 

 
bonuses or other employee compensation or benefits are or may have been awarded or earned; 

(ii) any and all Liabilities whatsoever with respect to claims made by or with respect to any PayPal Group Employees or Former
PayPal Group Employees in connection with any Benefit Plan obligations not retained or assumed by any member of the eBay Group pursuant to this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement or as otherwise provided
in Section 7.01(e); and 
 (iii) any and all Liabilities expressly assumed or retained by any member of the PayPal
Group pursuant to this Agreement. 
 (b) Acceptance and Assumption of eBay Liabilities. On or prior to the Effective Time, but in any
case prior to the Distribution and except as set forth in this Agreement, eBay and certain members of the eBay Group designated by eBay shall accept, assume and agree to faithfully perform, discharge and fulfill all of the following Liabilities held
by PayPal or any PayPal Designee and eBay and the applicable members of the eBay Group shall be responsible for such Liabilities in accordance with their respective terms (each of which shall be considered an eBay Liability), regardless of when or
where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such Liabilities are asserted or determined (including any Liabilities
arising out of claims made by eBay’s or PayPal’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the eBay Group or the PayPal Group) or whether asserted or determined
prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the eBay Group or the PayPal Group, or any of their respective
directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates: 
 (i) any and all wages, salaries,
incentive compensation (as the same may be modified by this Agreement), equity compensation (as the same may be modified by this Agreement), commissions, bonuses and any other employee compensation or benefits payable, provided or made available to
or on behalf of any eBay Group Employees and Former eBay Group Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation, equity compensation, commissions, bonuses or other employee compensation or
benefits are or may have been awarded or earned; 
 (ii) any and all Liabilities whatsoever with respect to claims made by or
with respect to any eBay Group Employees or Former eBay Group Employees in connection with any Benefit Plan obligations not retained or assumed by any member of the PayPal Group pursuant to this Agreement, the Separation and Distribution Agreement
or any Ancillary Agreement; and 
 (iii) any and all Liabilities expressly assumed or retained by any member of the eBay
Group pursuant to this Agreement. 
 (c) Unaddressed Liabilities. To the extent that this Agreement does not address particular
Liabilities under any Benefit Plan or with respect to any Employees and the 

  
 -9- 

 
Parties later determine that they should be allocated in connection with the Distribution, the Parties shall agree in good faith on the allocation, taking into account the handling of comparable
Liabilities under this Agreement. 
 (d) Fiduciary Liability Insurance. Treatment of claims covered by fiduciary liability insurance
shall be governed by Section 5.1 of the Separation and Distribution Agreement. 
 (e) Employment Tax Liabilities and Responsibilities
for Audit. 
 (i) The eBay Group shall be liable for, and shall indemnify and hold harmless the PayPal Group from and
against any Liability for, any payroll, social security, workers compensation, unemployment, disability or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity
or political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing (collectively, “Employment Taxes”) that relate to any eBay Group Employee, Former eBay Group Employee
or Transitioning eBay Group Employee, whether any such Liability has arisen, or may arise, in respect of any taxable period (or portion thereof) that ends on or prior to the Distribution Date. 

(ii) The PayPal Group shall be liable for, and shall indemnify and hold harmless the eBay Group from and against any Liability
for, any Employment Taxes that relate to any PayPal Group Employee or Former PayPal Group Employee, whether any such Liability has arisen, or may arise, in respect of any taxable period (or portion thereof) that ends on or prior to the Distribution
Date. 
 (iii) The Party that has Liability for the relevant Employment Taxes as provided in Section 2.01(e)(i)
or (ii) above, as applicable, shall also be responsible for, and have exclusive control (including for purposes of settlement of Liability) over, any ongoing or future audit, review, examination, or any other administrative or judicial
proceeding with the purpose or effect of redetermining such relevant Employment Taxes (including any administrative or judicial review of any claim for refund) or which may otherwise be in respect of such relevant Employment Taxes. 

Section 2.02. Service Credit. The PayPal Benefit Plans shall, and PayPal shall cause each member of the PayPal Group to, recognize
each PayPal Group Employee’s and each Former PayPal Group Employee’s full service with eBay or any of its Subsidiaries or predecessor entities at or before the Effective Time, to the same extent that such service was recognized by eBay for
similar purposes prior to the Effective Time as if such full service had been performed for a member of the PayPal Group, for purposes of eligibility, vesting and determination of level of benefits under any such PayPal Benefit Plan but only with
respect to those PayPal Benefit Plans in existence immediately following the Effective Time. 
 Section 2.03. Benefit Plans.

 (a) Establishment of Benefit Plans. Except as otherwise specified herein, before the Effective Time, PayPal shall, or shall cause
an applicable member of the PayPal Group to, adopt Benefit Plans (and related trusts and other funding instruments, if applicable), which 

  
 -10- 

 
through December 31, 2015 shall have substantially the same terms as of immediately prior to the Effective Time (or such other standard as is specified in this Agreement with respect to any
particular Benefit Plan) to those of the corresponding eBay Benefit Plans, including in particular those listed on Schedule 2.03(a); provided, however, that PayPal may limit participation in any such PayPal Benefit Plan to
PayPal Group Employees and Former PayPal Group Employees who participated in the corresponding eBay Benefit Plan immediately prior to the Effective Time. Notwithstanding the foregoing, PayPal may make such changes, modifications or amendments to the
PayPal Benefit Plans as may be required by applicable Law or as are necessary and appropriate to reflect the Separation or vendor limitations. 

(b) Benefit Plans Not Required to Be Adopted. Notwithstanding Section 2.03(a) above, PayPal shall not be required to adopt
any Benefit Plan (or related trust, if applicable) (i) to the extent that such adoption would not be permitted under applicable Law, regulation, practice, or vendor limitations, (ii) if the parties agree that such Benefit Plan should not
be so adopted by PayPal, or (iii) if such Benefit Plan is listed on Schedule 2.03(b). With respect to any eBay Benefit Plan not listed on Schedule 2.03(a) and Schedule 2.03(b), the parties shall agree in good
faith on the treatment of such plan taking into account the handling of any comparable plan under this Agreement. 
 (c) Information and
Operation. eBay shall, subject to and in compliance with applicable Law, provide PayPal with information describing each eBay Benefit Plan election made by a PayPal Group Employee, Former PayPal Group Employee and (with respect to any fees
payable after the Effective Time), any Continuing eBay Director or Transferring Director, that may have application to PayPal Benefit Plans from and after the Effective Time, and PayPal shall use its commercially reasonable efforts to administer the
PayPal Benefit Plans using those elections; and, further, to the extent necessary in order for eBay to administer any eBay Benefit Plan, PayPal shall provide eBay with such same information. Each Party shall, upon reasonable request, provide the
other Party and the other Party’s respective Affiliates, agents, and vendors all information reasonably necessary to the other Party’s operation or administration of its Benefit Plans. 

Section 2.04. Plan Administration and Non-U.S. Benefit Plans. 

(a) No Duplication or Acceleration of Benefits. Notwithstanding anything to the contrary in this Agreement, the Separation and
Distribution Agreement or any Ancillary Agreement, (i) no participant in any PayPal Benefit Plan shall receive service credit or benefits to the extent that receipt of such service credit or benefits would result in duplication of benefits
provided to such participant by the corresponding eBay Benefit Plan or any other plan, program or arrangement sponsored or maintained by a member of the eBay Group and (ii) no participant in any eBay Benefit Plan shall receive service credit or
benefits to the extent receipt of such service credit or benefits would result in duplication of benefits provided to such participant in the corresponding PayPal Benefit Plan or any other plan, program or agreement sponsored or maintained by a
member of the PayPal Group. Furthermore, unless expressly provided for in this Agreement, the Separation and Distribution Agreement or in any Ancillary Agreement or required by applicable Law, no provision in this Agreement shall be construed to
create any right to accelerate vesting or entitlements under any Benefit Plan sponsored or maintained by a member of 

  
 -11- 

 
the eBay Group or member of the PayPal Group on the part of any Employee or Former Employee, including in connection with the termination of employment. 

(b) No Expansion of Participation. Unless otherwise expressly provided in this Agreement, as otherwise determined or agreed to by eBay
and PayPal, as required by applicable Law, or as explicitly set forth in a PayPal Benefit Plan, a PayPal Group Employee or Former PayPal Group Employee shall be entitled to participate in the PayPal Benefit Plans at the Effective Time only to the
extent that such PayPal Group Employee or Former PayPal Group Employee was entitled to participate in the corresponding eBay Benefit Plan as in effect immediately prior to the Effective Time (to the extent that such PayPal Group Employee or Former
PayPal Group Employee does not participate in the respective PayPal Benefit Plan immediately prior to the Effective Time), it being understood that this Agreement does not expand (i) the number of PayPal Group Employees or Former PayPal Group
Employees entitled to participate in any PayPal Benefit Plan or (ii) the participation rights of PayPal Group Employees or Former PayPal Group Employees in any PayPal Benefit Plans beyond the rights of such PayPal Group Employees or Former
PayPal Group Employees under the corresponding eBay Benefit Plans, in each case, after the Effective Time. Unless otherwise expressly provided by this Agreement or otherwise agreed by the Parties, as of the Effective Time, a PayPal Group Employee or
Former PayPal Group Employee shall not be a participant in an eBay Benefit Plan. 
 (c) Transition Services. The Parties acknowledge
that eBay Group and PayPal Group may (i) agree that eBay Group may provide certain PayPal Benefit Plan administration for a period of time after the Distribution Date and (ii) share certain tools and programs relating to human resource
functions as specified under the Transition Services Agreement and, if required by HIPAA or other applicable privacy laws, shall enter into any applicable business associate agreement with respect to such arrangement. 

(d) Beneficiaries. References to eBay Group Employees, Former eBay Group Employees, PayPal Group Employees, Former PayPal Group
Employees, and non-employee directors of either eBay or PayPal (including Continuing eBay Directors and Transferring Directors), shall be deemed to include reference to their beneficiaries, dependents, survivors and alternate payees, as applicable.

 (e) Non-U.S. Benefit Plan. Prior to the Distribution Date, the PayPal Group shall, subject to and in compliance with applicable
Law, except as otherwise mutually agreed upon by the parties or as otherwise provided in Section 2.03(b), adopt the Non-U.S. PayPal Benefit Plans, with terms comparable to those of the corresponding Non-U.S. eBay Benefit Plans through
December 31, 2015 or undertake negotiations to this extent within the mandatory time periods provided by applicable Law, as applicable; provided, however, that PayPal may limit participation in any Non-U.S. PayPal Benefit Plan to
PayPal Group Employees who participated in the corresponding Non-U.S. eBay Benefit Plan immediately prior to the Distribution Date except where such differentiation is prohibited by applicable Law. 

Section 2.05. Individual Agreements. 

(a) Assignment by eBay. To the extent necessary, eBay shall assign, or cause an applicable member of the eBay Group to assign, to PayPal
or another member of the PayPal 

  
 -12- 

 
Group, as designated by PayPal, all Individual Agreements between such member of the eBay Group and any PayPal Group Employee or Former PayPal Group Employee, with such assignment to be effective
as of the Effective Time; provided, however, that to the extent that assignment of any such Individual Agreement is not permitted by the terms of such agreement or by applicable Law, effective as of the Effective Time, each member of
the PayPal Group shall be considered to be a successor to each member of the eBay Group for purposes of, and a third-party beneficiary with respect to, such Individual Agreement, such that each member of the PayPal Group shall enjoy all of the
rights and benefits under such agreement (including rights and benefits as a third-party beneficiary and the right to enforce any such agreement), with respect to the business operations of the PayPal Group; provided, further, that in
no event shall eBay be permitted to enforce any Individual Agreement (including any agreement containing non-competition or non-solicitation covenants) against a PayPal Group Employee or Former PayPal Group Employee for action taken in such
individual’s capacity as a PayPal Group Employee or Former PayPal Group Employee unless the Parties mutually agree that such action is commercially reasonable under the circumstances as they exist at such time. 

(b) Assumption by PayPal. Effective as of the Effective Time, PayPal will assume and honor, or will cause a member of the PayPal Group
to assume and honor, any Individual Agreement to which any PayPal Group Employee or Former PayPal Group Employee is a party with any member of the eBay Group, and all obligations and responsibilities of the applicable member of the eBay Group
thereunder. 
 (c) Residual Intellectual Property Rights under any Individual Agreement. Effective as of the Effective Time,
notwithstanding the fact that any Individual Agreement that contains covenants regarding Intellectual Property Rights with respect to both eBay IP and PayPal IP may be retained or assumed by either a member of the eBay Group or the PayPal Group, as
applicable, the party that is not retaining or assuming any such Individual Agreement shall nevertheless retain all rights and benefits under such agreement with respect to its Intellectual Property Rights, including the right to enforce any such
covenants.  
 Section 2.06. Collective Bargaining. Effective no later than immediately prior to the Effective Time, to
the extent necessary under and permitted by applicable Law, PayPal shall, in compliance with applicable Law, cause the appropriate member of the PayPal Group to (a) assume all collective bargaining agreements (including any national, sector or
local collective bargaining agreement), works council and other similar labor relations agreements and arrangements that cover PayPal Group Employees and/or Former PayPal Group Employees, and all Liabilities arising under any such collective
bargaining, works council and other similar labor relations agreements and arrangements, and (b) join any industrial, employer or similar association or federation if membership is required for such relevant collective bargaining, works council
and other similar labor relations agreement or arrangement to continue to apply and cover the relevant PayPal Group Employees and Former PayPal Group Employees, as applicable. 

Section 2.07. Non-U.S. Regulatory Compliance. The Parties shall have the authority to adjust the treatment described in this
Agreement, including the treatment under any Benefit Plan, with respect to PayPal Group Employees and/or Former PayPal Group Employees who are located outside of the United States in order to ensure compliance with the applicable Laws of countries

  
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outside of the United States or to preserve the Tax benefits provided under local Tax Law before the Distribution or as are necessary and appropriate to reflect the Separation or vendor
limitations. 
 ARTICLE III 

ASSIGNMENT OF EMPLOYEES 

Section 3.01. Employees. 

(a) Assignment and Transfer of Employees. Effective no later than immediately prior to the Effective Time and except as otherwise agreed
by the Parties, (i) the applicable member of the Parties shall have taken such actions as are necessary to ensure to the extent possible that each individual who is intended to be an employee of the PayPal Group as of immediately after the
Effective Time (including any such individual who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence (including due to a short-term or long-term disability) approved by the eBay Human Resources
department or otherwise taken in accordance with applicable Law) (collectively, the “PayPal Group Employees”) is employed by a member of the PayPal Group as of immediately after the Effective Time, on terms and conditions of
employment which are substantially comparable to the terms of employment governing such individuals prior to their assignment and (ii) the Parties shall have taken such actions as are necessary to ensure to the extent possible that each
individual who is intended to be an employee of the eBay Group as of immediately after the Effective Time (including any such individual who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence
(including due to a short-term or long-term disability) approved by the eBay Human Resources department or otherwise taken in accordance with applicable Law) and any other individual employed by the eBay Group as of the Effective Time who is not a
PayPal Group Employee (collectively, the “eBay Group Employees”) is employed by a member of the eBay Group as of immediately after the Effective Time, on terms and conditions of employment which are substantially comparable to the
terms of employment governing such individuals prior to their assignment. Each of the Parties agrees to execute, and to seek to have the applicable Employees execute, such documentation, if any, as may be necessary to reflect such assignment and/or
to comply with applicable Law in relation to the automatic transfer of the employment of applicable Employees including, but not limited to, any transfer pursuant to any regulation or other legislation that has implemented the Acquired Rights
Directive 2001. To the extent applicable, independent contractors shall also be allocated between the PayPal Group and the eBay Group by the Parties taking such actions as are necessary to ensure that each individual who is intended to be an
independent contractor of either Party or both Parties immediately after the Effective Time is an independent contractor of either Party or both Parties as applicable. 

(b) At-Will Status. Nothing in this Agreement shall create any obligation to any Employee on the part of any member of the eBay Group or
any member of the PayPal Group to (i) continue the employment of any Employee or permit the return from a leave of absence for any period after the date of this Agreement (except as required by applicable Law) or (ii) change the employment
status of any Employee from “at-will,” to the extent that such Employee is an “at-will” employee under applicable Law. 

(c) Severance. Except as required by applicable Law the Parties acknowledge and agree that the Distribution and the assignment, transfer
or continuation of the employment of 

  
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Employees as contemplated by this Section 3.01 shall not be deemed an involuntary termination of employment entitling any PayPal Group Employee or eBay Group Employee to severance
payments or benefits, provided that any severance payments or benefits that become payable notwithstanding the intent of the Parties shall be subject to Section 7.04. 

(d) Not a Change of Control/Change in Control. The Parties acknowledge and agree that neither the consummation of the Separation,
Distribution nor any transaction contemplated by this Agreement, the Separation and Distribution Agreement or any other Ancillary Agreement shall be deemed a “change of control,” “change in control,” or term of similar import for
purposes of any Benefit Plan sponsored or maintained by any member of the eBay Group or member of the PayPal Group. 
 (e) Payroll and
Related Taxes. Except as otherwise agreed by the Parties, for purposes of United States payroll taxes with respect to PayPal Group Employees or group of PayPal Group Employees, the Parties and their respective Affiliates agree to implement this
treatment by utilizing solely Section 4 of Revenue Procedure 2004-53, STANDARD PROCEDURE FOR PREDECESSORS AND SUCCESSORS. 
 (f)
Information and Consultation. The Parties shall comply, or shall cause their respective Affiliates to comply, with any obligations to inform, consult with, negotiate and/or obtain the consent of, or formal rendering of advice from, all
applicable labor or trade unions, works councils and any other employee representative bodies and shall make any notifications necessary as a result of the Separation, Distribution or any of the transactions contemplated by this Agreement, as
required by applicable Law or any written agreement. 
 ARTICLE IV 

EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION 

Section 4.01. Generally; Definitions. 

(a) Generally. Each eBay Equity Award that is outstanding as of immediately prior to the Effective Time shall be adjusted as described
below; provided, however, that, effective immediately prior to the Effective Time, the eBay Compensation Committee may provide for different adjustments with respect to some or all eBay Equity Awards to the extent that the eBay
Compensation Committee deems such adjustments necessary and appropriate and in accordance with the terms of the applicable eBay Equity Plan. Any adjustments made by the eBay Compensation Committee pursuant to the foregoing sentence shall be deemed
incorporated by reference herein as if fully set forth below and shall be binding on the Parties and their respective Affiliates. Before the Effective Time, the PayPal Equity Plan shall be established, with such terms as are necessary to permit the
implementation of the provisions of Section 4.02. 
 (b) Definitions. For ease of reference, the following additional
terms as used in this Agreement (and specifically this Article IV) shall have the meanings set forth below. 
 “Distributed
PayPal Stock Value” shall mean the product obtained by multiplying (x) the Post-Spin PayPal Stock Value by (y) the Distribution Ratio. 

  
 -15- 

 “Distribution Ratio” shall have the meaning set forth in the Separation and
Distribution Agreement. 
 “eBay Equity Awards” shall mean, collectively, eBay Options, eBay RSU Awards, eBay Restricted
Stock Awards, eBay PSU Awards, eBay DSU Awards and eBay PBRSU Awards. 
 “eBay DSU Award” shall mean a deferred stock unit
award, granted pursuant to the eBay Equity Plan, that is outstanding immediately prior to the Effective Time. 
 “eBay
ESPP” shall mean the eBay Inc. Employee Stock Purchase Plan, effective November 1, 2012 and any sub-plan maintained outside of the U.S. 

“eBay ESPP Option” shall mean an option granted pursuant to the eBay ESPP, that is outstanding prior to the Effective Time.

 “eBay Option” shall mean an option to purchase eBay Shares granted pursuant to an eBay Equity Plan that is outstanding
as of immediately prior to the Effective Time. 
 “eBay Option Exercise Price Ratio” shall mean, with respect to an eBay
Option or eBay ESPP Option, as applicable, the quotient obtained by dividing (x) the per share exercise price of such eBay Option or eBay ESPP Option, as applicable, immediately prior to the Effective Time, by (y) the Pre-Spin eBay Stock
Value. 
 “eBay PBRSU Award” shall mean a performance-based restricted stock unit award, which, for accounting purposes,
has been deemed granted and outstanding as of immediately prior to the Effective Time. 
 “eBay PSU Award” shall mean a
performance stock unit award, granted pursuant to an eBay Equity Plan, that is outstanding immediately prior to the Effective Time. 

“eBay Restricted Stock Award” shall mean a restricted stock award, granted pursuant to an eBay Equity Plan, that is
outstanding as of immediately prior to the Effective Time, which does not otherwise become vested solely by virtue of the Distribution. 

“eBay Retained Award Conversion Ratio” shall mean the quotient obtained by dividing (x) the Pre-Spin eBay Stock Value,
by (y) the Post-Spin eBay Stock Value. 
 “eBay RSU Award” shall mean a restricted stock unit award, granted pursuant
to an eBay Equity Plan, that is outstanding as of immediately prior to the Effective Time, which is not otherwise accelerated solely by virtue of the Distribution. 

“eBay Shares” shall have the meaning set forth in the Separation and Distribution Agreement. 

“eBay Stock Value Ratio” shall mean the quotient obtained by dividing (x) the Pre-Spin eBay Stock Value by (y) the
sum of (1) the Distributed PayPal Stock Value and (2) the Post-Spin eBay Stock Value. 

  
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 “PayPal DSU Award” shall mean a deferred stock unit award issued under the
PayPal Equity Plan, in respect of a corresponding eBay DSU Award that has been assumed by PayPal in accordance with Section 4.02(e). 

“PayPal Equity Award Conversion Ratio” shall mean the quotient obtained by dividing (x) the Pre-Spin eBay Stock Value,
by (y) the Post-Spin PayPal Stock Value. 
 “PayPal Equity Awards” shall mean, collectively, PayPal Options, PayPal
RSU Awards, PayPal PBRSU Awards, PayPal PSU Awards, PayPal Restricted Stock Awards and PayPal DSU Awards. 
 “PayPal Equity
Plan” shall mean the PayPal 2015 Equity Incentive Plan, to be adopted by PayPal prior to the Distribution Date as described in Section 4.01. 

“PayPal ESPP” shall mean the PayPal Employee Stock Purchase Plan, to be adopted by PayPal prior to the Distribution Date as
described in Section 4.03. 
 “PayPal ESPP Option” shall mean an option to purchase PayPal Shares issued under
the PayPal ESPP in respect of a corresponding eBay ESPP Option that has been assumed by PayPal in accordance with Section 4.03. 

“PayPal Option” shall mean an option to purchase PayPal Shares issued under the PayPal Equity Plan in respect of a
corresponding eBay Option that has been assumed by PayPal in accordance with Section 4.02(a). 
 “PayPal PBRSU
Award” shall mean a performance base restricted stock unit award issued under the PayPal Equity Plan, in respect of a corresponding eBay PBRSU Award that has been assumed by PayPal in accordance with Section 4.02(c). 

“PayPal PSU Award” shall mean a performance stock unit award issued under the PayPal Equity Plan in respect of a
corresponding eBay PSU Award that has been assumed by PayPal in accordance with Section 4.02(c). 
 “PayPal Restricted
Stock Award” shall mean a restricted stock award issued under the PayPal Equity Plan in respect of a corresponding eBay Restricted Stock Award that has been assumed by PayPal in accordance with Section 4.02(d). 

“PayPal RSU Award” shall mean a restricted stock unit award issued under the PayPal Equity Plan in respect of a corresponding
eBay RSU Award that has been assumed by PayPal in accordance with Section 4.02(b). 
 “PayPal Shares” shall
have the meaning set forth in the Separation and Distribution Agreement. 
 “PayPal Stock Value Ratio” shall mean the
quotient obtained by dividing (x) the Pre-Spin eBay Stock Value by (y) the sum of (1) the Post-Spin PayPal Stock Value and (2) the quotient obtained by dividing (A) the Post-Spin eBay Stock Value by (B) the Distribution
Ratio. 

  
 -17- 

 “Post-Spin eBay DSU Award” shall mean an eBay DSU Award, as adjusted as of the
Effective Time in accordance with Section 4.02(e). 
 “Post-Spin eBay Equity Awards” shall mean, collectively,
Post-Spin eBay Options, Post-Spin eBay RSU Awards, Post-Spin eBay PBRSU Awards, Post-Spin eBay PSU Awards and Post-Spin eBay DSU Awards. 

“Post-Spin eBay ESPP Option” shall mean an eBay ESPP Option, as adjusted as of the Effective Time in accordance with
Section 4.03. 
 “Post-Spin eBay Option” shall mean an eBay Option, as adjusted as of the
Effective Time in accordance with Section 4.02(a). 
 “Post-Spin eBay PBRSU Award” shall mean an eBay PBRSU
Award, as adjusted or granted, as applicable, in accordance with Section 4.02(c). 
 “Post-Spin eBay PSU Award”
shall mean an eBay PSU Award, as adjusted as of the Effective Time in accordance with Section 4.02(d). 
 “Post-Spin
eBay RSU Award” shall mean an eBay RSU Award, as adjusted as of the Effective Time in accordance with Section 4.02(b). 

“Post-Spin eBay Stock Value” shall mean the opening per-share price of eBay Shares on the NASDAQ on the first regular trading
session (9:30 am to 4:00 pm EST) after the Distribution Date. 
 “Post-Spin PayPal Stock Value” shall mean the
opening per-share price of PayPal Shares on the NASDAQ on the first regular trading session (9:30 am to 4:00 pm EST) after the Distribution Date. 

“Pre-Spin eBay Stock Value” shall mean the closing per-share price of eBay Shares trading “regular way with due
bills” on the NASDAQ on the last regular trading session (9:30 am to 4:00 pm EST) on the Distribution Date. 

Section 4.02. Equity Incentive Awards. 

(a) Stock Options. Each eBay Option that is outstanding immediately prior to the Effective Time shall be converted as of the
Effective Time into either a Post-Spin eBay Option or a PayPal Option, as described below: 
 (i) eBay Group
Employees who are not Transitioning eBay Group Employees. Each vested and unvested eBay Option held by an eBay Group Employee (and not otherwise adjusted as provided in subsection (iii) hereof) and each vested and exercisable eBay Option
held by a Former eBay Group Employee (if any) shall (1) be converted, as of the Effective Time, into a Post-Spin eBay Option through an adjustment thereto as provided in this Section 4.02(a)(i), and (2) otherwise be subject to
the same terms and conditions (including with respect to vesting and expiration of exercise period, 

  
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as applicable) after the Effective Time as applicable to such corresponding eBay Option immediately prior to the Effective Time, in accordance with the following: 

(A) the number of eBay Shares subject to such Post-Spin eBay Option (rounded down to the nearest whole share) shall be equal to
the product obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay Option immediately prior to the Effective Time, by (y) the eBay Retained Award Conversion Ratio; and 

(B) the per share exercise price of such Post-Spin eBay Option (rounded up to the nearest cent) shall be equal to the product
obtained by multiplying (x) the Post-Spin eBay Stock Value, by (y) the eBay Option Exercise Price Ratio. 
 (ii)
PayPal Group Employees. Each vested and unvested eBay Option held by a PayPal Group Employee and each vested and exercisable eBay Option held by a Former PayPal Group Employee (if any) shall (1) be converted, as of the Effective Time,
into a PayPal Option outstanding under the PayPal Equity Plan through an adjustment thereto as provided in this Section 4.02(a)(ii), and (2) otherwise be subject to the same terms and conditions (including with respect to vesting
and expiration of exercise period, as applicable) after the Effective Time as applicable to such eBay Option immediately prior to the Effective Time, in accordance with the following: 

(A) the number of PayPal Shares subject to such PayPal Option (rounded down to the nearest whole share) shall be equal to the
product obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay Option immediately prior to the Effective Time, by (y) the PayPal Equity Award Conversion Ratio; and 

(B) the per share exercise price of such PayPal Option (rounded up to the nearest cent) shall be equal to the product obtained
by multiplying (x) the Post-Spin PayPal Stock Value, by (y) the eBay Option Exercise Price Ratio of the corresponding eBay Option. 

(iii) Transitioning eBay Group Employees. Each vested eBay Option that is outstanding as of immediately prior to the
Effective Time and held by a Transitioning eBay Group Employee shall (1) be converted, as of the Effective Time, through an adjustment thereto as provided in this Section 4.02(a)(iii), into both a Post-Spin eBay Option outstanding
under the eBay Equity Plan and a PayPal Option outstanding under the PayPal Equity Plan and (2) otherwise be subject to the same terms and conditions (including with respect to vesting and expiration of exercise period, as applicable) after the
Effective Time as were applicable to such eBay Option immediately prior to the Effective Time (as such terms and conditions may be modified by the Transition Success and Retention Program) in accordance with the following: 

(A) the number of eBay Shares subject to such Post-Spin eBay Option shall be equal to the product (rounded down to the nearest
whole share) 

  
 -19- 

 
obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay Option immediately prior to the Effective Time, by (y) the eBay Stock Value Ratio; and 

(B) the per share exercise price of such Post-Spin eBay Option shall be equal to the quotient (rounded up to the nearest cent)
obtained by dividing (x) the per share exercise price of the corresponding eBay Option immediately prior to the Effective Time, by (y) the eBay Retained Award Conversion Ratio; and 

(C) the number of PayPal Shares subject to such PayPal Option shall be equal to the product (rounded down to the nearest whole
share) obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay Option immediately prior to the Effective Time, by (y) the PayPal Stock Value Ratio; and 

(D) the per share exercise price of such PayPal Option shall be equal to the quotient (rounded up to the nearest cent) obtained
by dividing (x) the per share exercise price of the corresponding eBay Option immediately prior to the Effective Time, by (y) the PayPal Equity Award Conversion Ratio. 

(iv) Directors. Each vested and unvested eBay Option that is outstanding and held by an eBay non-employee director as of
immediately prior to the Effective Time shall (1) be converted, as of the Effective Time, through an adjustment thereto as provided in this Section 4.02(a)(iv), into both a Post-Spin eBay Option outstanding under the eBay Equity
Plan and a PayPal Option outstanding under the PayPal Equity Plan and (2) otherwise be subject to the same terms and conditions (including with respect to vesting and expiration, as applicable) after the Effective Time as were applicable to
such eBay Option immediately prior to the Effective Time, in accordance with the following: 
 (A) the number of eBay Shares
subject to such Post-Spin eBay Option shall be equal to the product (rounded down to the nearest whole share) obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay Option immediately prior to the Effective
Time, by (y) the eBay Stock Value Ratio; 
 (B) the per share exercise price of such Post-Spin eBay Option shall be
equal to the quotient (rounded up to the nearest cent) obtained by dividing (x) the per share exercise price of the corresponding eBay Option immediately prior to the Effective Time, by (y) the eBay Retained Award Conversion Ratio; and

 (C) the number of PayPal Shares subject to such PayPal Option shall be equal to the product (rounded down to the nearest
whole share) obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay Option immediately prior to the Effective Time, by (y) the PayPal Stock Value Ratio; 

  
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 (D) the per share exercise price of such PayPal Option shall be equal to the
quotient (rounded up to the nearest cent) obtained by dividing (x) the per share exercise price of the corresponding eBay Option immediately prior to the Effective Time, by (y) the PayPal Equity Award Conversion Ratio. 

Notwithstanding anything to the contrary in this Section 4.02(a), the exercise price, the number of eBay Shares and PayPal Shares subject to each
Post-Spin eBay Option and PayPal Option, as applicable, and the terms and conditions of exercise of such options, shall be determined in a manner consistent with the requirements of Section 409A of the Code; provided, further,
that, in the case of any eBay Option to which Section 421 of the Code applies by reason of its qualification under Section 422 of the Code as of immediately prior to the Effective Time, the exercise price, the number of eBay Shares and
PayPal Shares subject to such option, and the terms and conditions of exercise of such option shall be determined in a manner consistent with the requirements of Section 424(a) of the Code. 

(b) RSU Awards. Each eBay RSU Award that is outstanding immediately prior to the Effective Time shall be converted as of the
Effective Time into either a Post-Spin eBay RSU Award or a PayPal RSU Award, as described below: 
 (i) eBay
Group Employees who are not Transitioning eBay Group Employees. Each eBay RSU Award held by an eBay Group Employee who is not a Transitioning eBay Group Employee shall (1) be converted as of the Effective Time, into a Post-Spin eBay RSU
Award through an adjustment thereto as provided in this Section 4.02(b)(i), and (2) otherwise be subject to the same terms and conditions (including with respect to vesting) after the Effective Time as applicable to such eBay RSU
Award immediately prior to the Effective Time, in accordance with the following: the number of eBay Shares subject to each Post-Spin eBay RSU Award (rounded down to the nearest whole share) shall be equal to the product obtained by multiplying
(x) the number of eBay Shares subject to the corresponding eBay RSU Award immediately prior to the Effective Time, by (y) the eBay Retained Award Conversion Ratio. 

(ii) Transitioning eBay Group Employees. Each eBay RSU Award that is outstanding as of immediately prior to the
Effective Time and held by a Transitioning eBay Group Employee shall (1) be converted as of the Effective Time, through an adjustment thereto as provided in this Section 4.02(b)(ii), into a Post-Spin eBay RSU Award outstanding under
the eBay Equity Plan and a PayPal RSU Award outstanding under the PayPal Equity Plan and (2) otherwise be subject to the same terms and conditions after the Effective Time as were applicable to such eBay RSU Award prior to the Effective Time as
such terms and conditions may be modified by the Transition Success and Retention Program, in accordance with the following: 

(A) the number of shares subject to the Post-Spin eBay RSU Award shall remain the same number of eBay Shares subject to
the eBay RSU Award immediately prior to the Effective Time; and 
 (B) the number of shares subject to the PayPal RSU Award
shall be equal to the product (rounded down to the nearest whole share) obtained by multiplying (x) the number of eBay Shares subject to the eBay RSU Award immediately prior to the Effective Time, by (y) the Distribution Ratio. 

  
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 (iii) PayPal Group Employees. Each eBay RSU Award held by a PayPal
Group Employee shall (1) be converted as of the Effective Time into a PayPal RSU Award outstanding under the PayPal Equity Plan through an adjustment thereto as provided in this Section 4.02(b)(iii) and (2) otherwise be subject
to the same terms and conditions (including with respect to vesting) after the Effective Time as applicable to such eBay RSU Award immediately prior to the Effective Time, in accordance with the following: the number of PayPal Shares subject to
such PayPal RSU Award (rounded down to the nearest share) shall be equal to the product obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay RSU Award immediately prior to the Effective Time, by (y) the
PayPal Equity Award Conversion Ratio. 
 (c) PBRSU Awards and PSU Awards. 

(i) Adjustment of Performance Targets of PBRSU Awards for eBay Group Employees who are not Transitioning eBay Group Employees, and
PayPal Group Employees. As of the Effective Time, each target eBay PBRSU Award with a fiscal year 2014-2015 performance period or a fiscal year 2015-2016 performance period that has been granted under the applicable eBay Equity Plan and is
outstanding immediately prior to the Effective Time (an “Outstanding eBay PBRSU Award”), if any, shall be converted as of the Effective Time into either a target Post-Spin eBay PBRSU Award or a target PayPal PBRSU Award, in either
such case with the performance criteria for the 2014-2015 eBay PBRSU Awards being adjusted such that the performance goal for 2015 shall be based on the performance of the relevant business unit, rather than eBay Inc., in accordance with the
following: 
 (A) Target PBRSU Awards for eBay Group Employees who are not Transitioning eBay Group
Employees. Any Outstanding eBay PBRSU Award held by an eBay Group Employee (and not described in subsection (iii) hereof) shall (1) be converted as of the Effective Time, through an adjustment thereto as provided in this
Section 4.02(c)(i)(A), into a target Post-Spin eBay PBRSU Award and (2) otherwise be subject to the same terms and conditions (including with respect to vesting and performance conditions) after the Effective Time as applicable to
such Outstanding eBay PBRSU Award immediately prior to the Effective Time, in accordance with the following: the target number of eBay Shares subject to such target Post-Spin eBay PBRSU Award shall be equal to the product (rounded down to the
nearest whole share) obtained by multiplying (x) the number of eBay Shares subject to the corresponding Outstanding eBay PBRSU Award immediately prior to the Effective Time, by (y) the eBay Retained Award Conversion Ratio. 

(B) Target PBRSU Award for PayPal Group Employees. Any Outstanding eBay PBRSU Award held by a PayPal Group Employee
shall (1) be converted as of the Effective Time, into a target Post-Spin PayPal PBRSU Award through an adjustment thereto as provided in this Section 4.02(c)(i)(B), and (2) otherwise be subject to the same terms and conditions
(including with respect to vesting and performance conditions) after the Effective Time as applicable to such Outstanding eBay PBRSU 

  
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Award immediately prior to the Effective Time, in accordance with the following: the target number of PayPal Shares subject to such target PayPal PBRSU Award (rounded down to the nearest whole
share) shall be equal to the product obtained by multiplying (x) the number of eBay Shares subject to the corresponding Outstanding eBay PBRSU Award immediately prior to the Effective Time, by (y) the PayPal Equity Award Conversion Ratio.

 (ii) PBRSU Awards to be Granted to eBay Group Employees who are not Transitioning eBay Group Employees, and PayPal
Employees. With respect to any target eBay PBRSU Award with a fiscal year 2014-2015 performance period or a fiscal year 2015-2016 performance period (collectively, “Future PBRSU Awards”) which has not yet been granted pursuant
to the applicable eBay Equity Plan, the following provisions shall apply: 
 (A) any eBay Group Employee who would,
in accordance with the normal practices of eBay, be granted Future PBRSU Awards pursuant to the applicable eBay Equity Plan, shall be granted, subject to the eBay Group’s actual achievement of applicable performance goals and such eBay Group
Employee’s continuous service with any member of the eBay Group through the date of grant, a number of RSUs subject to the Future PBRSU Awards pursuant to the applicable eBay Equity Plan, determined using the formula provided in
Section 4.02(c)(i)(A) above, as if such Future PBRSU Awards had been Outstanding eBay PBRSU Awards as of immediately prior to the Effective Time and otherwise determined under the normal grant practices of eBay; and 

(B) any PayPal Group Employee who would, if he or she had remained an eBay Group Employee through the date Future PBRSU Awards
would, in accordance with the normal practices of eBay, have been granted, shall be granted, subject to the PayPal Group’s actual achievement of applicable performance goals and such PayPal Group Employee’s continuous service with any
member of the PayPal Group from the Distribution Date through the date of grant, a number of RSUs subject to the PayPal PBRSU Awards pursuant to the PayPal Equity Plan, determined using the formula provided in Section 4.02(c)(i)(B)
above, as if the Future PBRSU Awards to which such PayPal PBRSU Awards correspond had been Outstanding eBay PBRSU Awards as of immediately prior to the Effective Time, and otherwise determined under the applicable grant practices of PayPal. 

(iii) PBRSU Awards and PSU Awards for Transitioning eBay Group Employees. Each Outstanding eBay PBRSU Award and eBay PSU Award
that is outstanding as of immediately prior to the Effective Time and held by a Transitioning eBay Group Employee shall (1) be converted, as of the Effective Time, into a Post-Spin eBay PBRSU Award and Post-Spin eBay PSU Award, respectively,
outstanding under the eBay Equity Plan and a PayPal PBRSU Award and a PayPal PSU Award, respectively, outstanding under the PayPal Equity Plan through an adjustment thereto as provided in this Section 4.02(iii), and (2) otherwise be
subject to the same terms and conditions after the Effective Time as were applicable to such Outstanding eBay PBRSU Award and eBay PSU Award, respectively, prior to the Effective Time (as such terms and conditions may be modified by the Transition
Success and Retention Program) in accordance with the following: 

  
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 (A) the number of shares subject to the Post-Spin eBay PBRSU Award and Post-Spin
eBay PSU Award, respectively, shall be equal to the same number of eBay Shares subject to the Outstanding eBay PBRSU Award and eBay PSU Award, respectively, immediately prior to the Effective Time; and 

(B) the number of shares subject to the PayPal PBRSU Award and PayPal PSU Award, respectively, shall be equal to the product
(rounded down to the nearest whole share) obtained by multiplying (x) the number of eBay Shares subject to the Outstanding eBay PBRSU Award and eBay PSU Award, respectively, immediately prior to the Effective Time, by (y) the Distribution
Ratio. 
 (d) Restricted Stock Awards. Each eBay Restricted Stock Award that is outstanding as of immediately prior to the
Effective Time and held by a PayPal Group Employee shall (1) be converted, as of the Effective Time, into a PayPal Restricted Stock Award outstanding under the PayPal Equity Plan as provided in this Section 4.02(d) and
(2) otherwise be subject to the same terms and conditions (including with respect to vesting) after the Effective Time as were applicable to such eBay Restricted Stock Award prior to the Effective Time, in accordance with the following: the
number of PayPal Shares subject to such PayPal Restricted Stock Award shall be equal to the product (rounded down to the nearest whole share) obtained by multiplying (x) the number of eBay Shares subject to the corresponding eBay Restricted
Stock Award immediately prior to the Effective Time, by (y) the PayPal Equity Award Conversion Ratio. 
 (e) DSU Awards.
Each eBay DSU Award that is outstanding and held by a non-employee director of eBay as of immediately prior to the Effective Time shall (1) be converted, as of the Effective Time, into a Post-Spin eBay DSU Award outstanding under the eBay
Equity Plan and a PayPal DSU Award outstanding under the PayPal Equity Plan as provided in this Section 4.02(e) and (2) otherwise be subject to the same terms and conditions (including with respect to vesting) after the Effective
Time as were applicable to such eBay DSU Award prior to the Effective Time, in accordance with the following: 
 (i) the
number of shares subject to the Post-Spin eBay DSU Award shall be equal to the same number of eBay Shares subject to the eBay DSU Award immediately prior to the Effective Time; and 

(ii) the number of shares subject to the PayPal DSU Award shall be equal to the product (rounded down to the nearest whole
share) obtained by multiplying (x) the number of eBay Shares subject to the eBay DSU Award immediately prior to the Effective Time by (y) the Distribution Ratio. 

(f) Miscellaneous Terms. 

(i) With respect to Post-Spin eBay Equity Awards and PayPal Equity Awards: (A) employment or service with the eBay Group or the PayPal
Group, as applicable, prior to the Effective Time shall be treated as employment with or service to eBay with respect to Post-Spin eBay Equity Awards held by any person who is employed by or provides services to any member of the eBay Group
immediately following the Effective Time (including any Continuing eBay Director); and (B) employment with or service to the eBay Group or the PayPal Group, as 

  
 -24- 

 
applicable, prior to the Effective Time shall be treated as employment with or service to PayPal with respect to PayPal Equity Awards held by any person who is employed by or provides services to
any member of the PayPal Group immediately following the Effective Time (including any Transferring Director). In addition, (I) none of the Separation, the Distribution or any employment transfer described in Section 3.01(a), nor
the fact that upon Separation certain nonemployee members of the eBay Board will serve as Continuing eBay Directors but (relative to any PayPal Equity Award) cease to provide services to the PayPal Group and other nonemployee members of the eBay
Board will serve as Transferring Directors but (relative to Post-Spin eBay Equity Awards) cease to provide services to the eBay Group, shall constitute a termination of employment or service for any Employee or any such nonemployee member of the
eBay Board for purposes of any Post-Spin eBay Equity Award or any PayPal Equity Award, as applicable, and (II) after the Effective Time, for any equity award adjusted under this Section 4.02, any reference to a “change of
control,” “change in control” or similar definition in an award agreement, offer letter, employment agreement, equity side letter or eBay Equity Plan applicable to such award (x) with respect to Post-Spin eBay Equity Awards,
shall be deemed to refer to a “change of control,” “change in control” or similar definition as set forth in the applicable award agreement, offer letter, employment agreement, equity side letter or eBay Equity Plan (an
“eBay Change of Control”), and (y) with respect to PayPal Equity Awards, shall be deemed to refer to a “change in control” as defined in the PayPal Equity Plan (a “PayPal Change of Control”). 

(ii) Any determination in respect of any Post-Spin eBay Equity Award held by a nonemployee of eBay shall be made by the Compensation Committee
of the eBay Board or its designee, and any determination in respect of any Post-Spin PayPal Equity Award held by a nonemployee of PayPal shall be made by the Compensation Committee of the PayPal Board or its designee. 

(iii) The PayPal Equity Plan shall assume and honor the terms of all QDROs and any other domestic relations orders in effect under the eBay
Equity Plan (and any award agreements granted thereunder) in respect of PayPal Group Employees and Former PayPal Group Employees immediately prior to the Distribution Date (for PayPal Group Employees and Former PayPal Group Employees, as
applicable). 
 (g) Settlement and Forfeiture of Equity Awards. 

(i) Allocation of Responsibility for Settlement of Equity Awards. Except as otherwise provided in this Section 4.02(h) and
Section 4.02(i), after the Effective Time, Post-Spin eBay Equity Awards, regardless of whether held by Employees, Former Employees, Transitioning eBay Group Employees, Continuing eBay Directors or Transferring Directors, shall be settled
by eBay, and PayPal Equity Awards, regardless of whether held by Employees, Former Employees, Transitioning eBay Group Employees, Continuing eBay Directors or Transferring Directors shall be settled by PayPal. eBay and PayPal shall cooperate, in
accordance with the terms of Section 2.03(c), to coordinate the prompt settlement of any such awards that become vested on the Distribution Date and any such awards that are exercised on or after the Distribution Date, as applicable, in
accordance with the terms of Section 4.02(j). 

  
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 (ii) Forfeiture of Equity Awards. Following the Effective Time, if any Post-Spin
eBay Equity Award held by a PayPal Group Employee, Former PayPal Group Employee or Transferring Director shall fail to become vested, such Post-Spin eBay Equity Award shall be forfeited to eBay, and if any PayPal Equity Award held by an eBay Group
Employee, Former eBay Group Employee or Continuing eBay Director shall fail to become vested, such PayPal Equity Award shall be forfeited to PayPal. 

(h) Equity Award Tax Reporting, Withholding and Deductions. 

(i) Tax Withholding for PayPal Equity Awards. Upon the vesting, payment or settlement, as applicable, of PayPal Equity Awards, the
PayPal Group shall be solely responsible for ensuring (A) the satisfaction of all applicable tax withholding requirements with respect to each PayPal Group Employee, Former PayPal Group Employee and Transitioning eBay Group Employee and
(B) the collection and remittance of applicable withholding taxes to the appropriate Governmental Authority in respect of all PayPal Equity Awards for which PayPal is entitled to claim a tax deduction pursuant to clause (v) below.
Notwithstanding the foregoing, however, for all PayPal Equity Awards (other than PayPal Options) held by the Transitioning eBay Group Employees, PayPal shall be responsible for the collection of applicable withholding taxes and shall remit all such
withheld amounts to the eBay Group (with eBay Group being responsible for remittance of such amounts to the appropriate Governmental Authority). 

(ii) Tax Withholding for Post-Spin eBay Equity Awards. Upon the vesting, payment or settlement, as applicable, of Post-Spin eBay Equity
Awards, the eBay Group shall be solely responsible for ensuring (A) the satisfaction of all applicable tax withholding requirements with respect to each eBay Group Employee, Former eBay Group Employee and Transitioning eBay Group Employee and
(B) the collection and remittance of applicable withholding taxes to the appropriate Governmental Authority in respect of all eBay Equity Awards for which eBay is entitled to claim a tax deduction pursuant to clause (v) below. 

(iii) Applicable Withholding Rates. The applicable tax withholding requirements for any Employee, Former Employee and
Transitioning eBay Group Employee subject to tax in the United States shall be based on the minimum statutory rates and except as otherwise required by applicable Law, for Employees, Former Employees and Transitioning eBay Group Employees subject to
tax outside the United States shall be based on the maximum statutory requirements. 
 (iv) Tax Reporting. Following
the Effective Time: (A) the eBay Group shall be responsible for all income, payroll and other tax reporting in respect of all Post-Spin eBay Equity Awards held by eBay Group Employees, Former eBay Group Employees, Transitioning eBay Group
Employee, Continuing eBay Directors and Transferring Directors for which eBay is entitled to claim a tax deduction pursuant to clause (v) below, as applicable, and (B) the PayPal Group shall be responsible for all income, payroll and other
tax reporting in respect of all PayPal Equity Awards held by PayPal Group Employees, Former PayPal Group Employees, Transitioning eBay Group Employees, Continuing eBay Directors and Transferring Directors for which PayPal is entitled to claim a tax
deduction pursuant to clause (v) below. 
 (v) Tax Deductions. Following the Effective Time, the entitlement to Tax (as
defined in the Tax Matters Agreement) deductions in respect of eBay Equity Awards and PayPal Equity Awards, as applicable, shall be governed by Section 6.02 of the Tax Matters Agreement.  

  
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 (i) Cooperation. Each of the Parties shall establish an appropriate administration system
in order to administer, in an orderly manner, (i) exercises of vested Post-Spin eBay Options and PayPal Options, (ii) the vesting and forfeiture of unvested Post-Spin eBay Equity Awards and PayPal Equity Awards, and (iii) the
withholding and reporting requirements with respect to all equity awards. Each of the Parties shall use their reasonable best efforts together to unify and consolidate all indicative data and payroll and employment information on regular timetables
and make certain that each applicable Person’s data and records in respect of such awards are correct and updated on a timely basis. The foregoing shall include employment status (e.g., disability or termination of employment) and other
information that may be required for vesting and forfeiture of awards and tax withholding/remittance, and any proceedings referenced in Section 2.01(e), compliance with trading windows and compliance with the requirements of the Exchange Act
and other applicable Laws. 
 (j) Establishment of PayPal Equity Plan. Effective as of or prior to the Effective Time, the
PayPal Board shall (i) adopt the PayPal Equity Plan under which the PayPal Options, PayPal RSU Awards, PayPal PBRSU Awards, PayPal Restricted Stock Awards, PayPal PSU Awards and PayPal DSU Awards, as applicable, shall be granted and
(ii) cause PayPal to assume the obligations under the eBay Equity Awards that are, pursuant to this Agreement, being replaced with the applicable PayPal Options, PayPal RSU Awards, PayPal PBRSU Awards, PayPal Restricted Stock Awards, PayPal PSU
Awards and PayPal DSU Awards. To the extent necessary for any such awards to qualify for transitional relief under Treasury Regulation Section 1.162-27(f)(4)(iii), eBay shall take the necessary action to grant or approve the PayPal Equity
Awards. The PayPal Equity Plan shall have substantially comparable terms, as of immediately prior to the Effective Time, as the eBay Equity Plan under which the corresponding eBay Equity Awards were governed prior to the Distribution with such
changes as are necessary and appropriate to reflect the Separation and such other changes, modifications or amendments to the PayPal Equity Plans as may be required by applicable Law. PayPal shall also assume and honor the terms of all QDROs and any
other domestic relations orders in effect under the eBay Equity Plan in respect of PayPal Group Employees immediately prior to the Distribution Date (for PayPal Group Employees) for all purposes of PayPal Equity Awards under the PayPal Equity
Plan. 
 (k) Registration and Other Regulatory Requirements. PayPal agrees to file Forms S-1, S-3 and/or S-8
registration statements with respect to, and to cause to be registered pursuant to the Securities Act, the PayPal Shares authorized for issuance under the PayPal Equity Plan, as required pursuant to the Securities Act, no later than the Effective
Time and in any event before the date of issuance of any PayPal Shares pursuant to the PayPal Equity Plan. The parties shall take such additional actions as are deemed necessary or advisable to effectuate the foregoing provisions of Article
IV, including compliance with securities Laws and other legal requirements associated with equity compensation awards in affected non-U.S. jurisdictions. 

  
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 Section 4.03. Employee Stock Purchase Plans. 

(a) eBay ESPP. Each eBay ESPP Option that is outstanding immediately prior to the Effective Time shall be converted as of the Effective
Time into either a Post-Spin eBay ESPP Option or a PayPal ESPP Option as described below: 
 (i) Each eBay ESPP Option held
by an eBay Group Employee shall (1) be converted as of the Effective Time into a Post-Spin eBay ESPP Option through an adjustment thereto as provided in this Section 4.03, and (2) otherwise be subject to the same terms and
conditions (including with respect to expiration) after the Effective Time as applicable to such eBay ESPP Option immediately prior to the Effective Time, in accordance with the following: 

(A) The maximum number of eBay Shares subject to such Post-Spin eBay ESPP Option for the purchase period in effect on the
Distribution Date (rounded down to the nearest whole share) shall be equal to the product obtained by multiplying (x) the maximum number of shares subject to the eBay ESPP Option, by (y) the eBay Retained Award Conversion Ratio; and 

(B) the per share offering date purchase price for each Offering Period in effect on the Distribution Date of such Post-Spin
eBay ESPP Option (rounded up to the nearest cent) shall be equal to the product obtained by multiplying (x) the Post-Spin eBay Stock Value, by (y) the eBay Option Exercise Price Ratio of the corresponding eBay ESPP Option. 

(ii) Each eBay ESPP Option held by a PayPal Group Employee shall be converted as of the Effective Time into a PayPal ESPP
Option outstanding under the PayPal ESPP Plan and shall, except as otherwise provided in this Section 4.03, be subject to the same terms and conditions (including with respect to expiration) after the Effective Time as applicable to such
eBay ESPP Option immediately prior to the Effective Time in accordance with the following: 
 (A) The maximum number of
PayPal Shares subject to such PayPal ESPP Option for the purchase period in effect on the Distribution Date (rounded down to the nearest whole share), shall be equal to the product obtained by multiplying (1) the maximum number of share subject
to an eBay Option, by (2) the PayPal Equity Award Conversion Ratio; and 
 (B) the per share offering date purchase
price for the Offering Period in effect on the Distribution Date of such PayPal ESPP Option (rounded up to the nearest cent), shall be equal to the product obtained by multiplying (1) the Post-Spin PayPal Stock Value, by (2) the eBay
Option Exercise Price Ratio of the corresponding eBay ESPP Option. 
 Notwithstanding anything to the contrary in this Section 4.03, in the case
of any eBay ESPP Option to which Section 421 of the Code applies by reason of its qualification under Section 423 of the Code as of immediately prior to the Effective Time, the exercise price, the number of eBay Shares and PayPal Shares
subject to such option, and the terms and conditions of exercise of such option shall be determined in a manner consistent with the requirements of Section 424(a) of the Code. 

  
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 (b) Establishment of PayPal ESPP. Prior to the Effective Time, PayPal shall
(i) adopt the PayPal ESPP under which the PayPal ESPP Options shall be granted and (ii) assume the obligations under the eBay ESPP Options that are, pursuant to this Agreement, being replaced with the PayPal ESPP Options. The PayPal ESPP
may have terms that are comparable to those in effect, as of immediately prior to the Effective Time, under which the corresponding eBay ESPP Options were governed prior to the Distribution, including with such changes as are necessary and
appropriate to reflect the Separation and such other changes, modifications or amendments to the PayPal Equity Plans as may be required by applicable Law. The PayPal ESPP will include authority to grant options which do not meet the requirements of
Section 423(b) of the Code (as well as options which meet such requirements). 
 (c) Elections under the ESPP.
PayPal and eBay shall use their reasonable best efforts to cooperate to facilitate: (i) the carryover of current elections made by each PayPal Group Employee in effect under the eBay ESPP to the PayPal ESPP and (ii) the transfer of
contributions associated with such elections from the eBay ESPP to the PayPal ESPP. 
 (d) Tax Reporting and Deductions.
Following the Effective Time, (i) the eBay Group shall be responsible for all income, payroll and other tax reporting in respect of eBay shares issued (or PayPal shares received in respect of eBay shares issued) under the eBay ESPP, and
(ii) the entitlement to Tax (as defined in the Tax Matters Agreement) deductions in respect of shares issued under the eBay ESPP and PayPal ESPP, as applicable, shall be governed by Section 6.02 of the Tax Matters Agreement. 

Section 4.04. Non-Equity Incentive Plans. 

(a) Corporate Bonus Plans. 

(i) No later than the Effective Time, PayPal shall establish the PayPal Incentive Plans, which, through December 31, 2015, shall have
substantially comparable terms as of immediately prior to the Effective Time as the corresponding eBay Incentive Plans in which the PayPal Group Employee participated as of immediately prior to the Effective Time, with such changes to the applicable
performance goals as may be necessary in order to reflect the PayPal Business following the Separation, and such other changes, modifications or amendments to the PayPal Incentive Plans as may be required by applicable Law. PayPal Group Employees
shall be eligible to participate in the PayPal Incentive Plans as of the Effective Time to the extent that they were eligible to participate in the eBay Incentive Plans as of immediately prior to the Effective Time. 

(ii) The applicable determining body, person or group of persons of the PayPal Group shall be responsible for determining all bonus awards
that would otherwise be payable under the PayPal Incentive Plans to PayPal Group Employees or Former PayPal Group Employees for any performance periods that are open when the Effective Time occurs. The PayPal Group shall also determine for PayPal
Group Employees or Former PayPal Group Employees (A) the extent to which established performance criteria (as interpreted by the 

  
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applicable determining body, person or group of persons of the PayPal Group, in its sole discretion) have been met, and (B) the payment level for each PayPal Group Employee or Former PayPal
Group Employee. The PayPal Group shall assume all Liabilities with respect to any such bonus awards payable to PayPal Group Employees or Former PayPal Group Employees for any performance periods that are open when the Effective Time occurs and
thereafter, and any other Liabilities relating to PayPal Group Employees or Former PayPal Group Employees under the eBay Incentive Plans and no member of the eBay Group shall have any obligations with respect thereto. 

(iii) The applicable determining body, person or group of persons of eBay Group shall be responsible for determining all bonus awards that
would otherwise be payable under the eBay Incentive Plans to eBay Group Employees or Former eBay Group Employees for any performance periods that are open when the Effective Time occurs. The eBay Group shall also determine for eBay Group Employees
or Former eBay Group Employees (A) the extent to which established performance criteria (as interpreted by the applicable determining body, person or group of persons of the eBay Group, in its sole discretion) have been met, and (B) the
payment level for each eBay Group Employee or Former eBay Group Employee. The eBay Group shall retain (or assume as necessary) all Liabilities with respect to any such bonus awards payable to eBay Group Employees or Former eBay Group Employees for
any performance periods that are open when the Effective Time occurs and thereafter, and no member of the PayPal Group shall have any obligations with respect thereto. 

(b) eBay Retained Bonus Plans. No later than the Effective Time, the eBay Group shall continue to retain (or assume as necessary) any
incentive compensation plan (including any sales incentive or other incentive plans applicable at the individual business unit level) for the exclusive benefit of eBay Group Employees and Former eBay Group Employees, whether or not sponsored by the
eBay Group, and, from and after the Effective Time, shall be solely responsible for all Liabilities thereunder. 
 (c) PayPal Retained
Bonus Plans. No later than the Effective Time, the PayPal Group shall continue to retain (or assume as necessary) any incentive plan (including any sales incentive or other incentive plans applicable at the individual business unit level) for
the exclusive benefit of PayPal Group Employees and Former PayPal Group Employees, whether or not sponsored by the PayPal Group, and, from and after the Effective Time, shall be solely responsible for all Liabilities thereunder. 

Section 4.05. Director Compensation. 

(a) Director Compensation Allocable to Service. eBay shall be responsible for the payment of any fees for service on the eBay Board that
are earned at, before, or after the Effective Time, and PayPal shall not have any responsibility for any such payments. With respect to any PayPal non-employee director, PayPal shall be responsible for the payment of any fees for service on the
PayPal Board that are earned at any time after the Effective Time and eBay shall not have any responsibility for any such payments. Notwithstanding the foregoing, PayPal shall commence paying quarterly cash retainers to PayPal non-employee directors
in respect of the quarter in which the calendar date immediately following the Distribution Date occurs; provided that eBay will pay PayPal an amount equal to the portion of such payment that is attributable to

  
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Transferring Directors’ service to eBay on and prior to the Effective Time (including, for the avoidance of doubt, the grant date fair value of any PayPal deferred stock units that may be
issued in respect of any partial quarterly service on the eBay Board during the quarter on which the Distribution Date occurs, if applicable). For the avoidance of doubt, eBay Equity Awards held by non-employee directors as of immediately prior to
the Effective Time shall be treated as described in Section 4.02. 
 (b) Impact of Change of Control on Director Equity
Awards. With respect to provisions related to vesting of eBay Equity Awards and, to the extent applicable, following the Effective Time, PayPal Equity Awards, an eBay Change of Control shall be treated as a PayPal Change of Control for purposes
of PayPal Equity Awards held, after the Effective Time, by Continuing eBay Directors, and a PayPal Change of Control shall be treated as an eBay Change of Control for purposes of Post-Spin eBay Equity Awards held by Transferring Directors.

 ARTICLE V 
 RETIREMENT
PLANS 
 Section 5.01. PayPal 401(k) Plan. 

(a) Establishment of Plan. Effective on or before the Distribution Date, the PayPal Board shall adopt and establish the PayPal
401(k) Plan and a related trust (the “PayPal 401(k) Trust”) which shall be intended to meet the Qualification Requirements (including under Sections 401(k) and (m) of the Code) and which through December 31, 2015
shall have substantially the same terms as of immediately prior to the Distribution Date as the eBay 401(k) Plan. Notwithstanding the foregoing, PayPal may make such changes, modifications or amendments to the PayPal 401(k) Plan as may be required
by applicable Law or as are necessary and appropriate to reflect the Separation or which result from vendor limitations. Before the Distribution Date, PayPal shall provide eBay with (i) a copy of the PayPal 401(k) Plan, PayPal 401(k) Trust and
volume submitter approval letter and (ii) a copy of certified resolutions of the PayPal Board (or its authorized committee or other delegate) evidencing adoption of the PayPal 401(k) Plan and PayPal 401(k) Trust and the assumption by the PayPal
401(k) Plan of the Liabilities described in Section 5.01(b). 
 (b) Transfer of Account Balances. No later
than 30 days following the Effective Time (or such other times as mutually agreed to by the parties), eBay shall cause the trustee of the eBay 401(k) Plan to transfer from the trust which forms a part of the eBay 401(k) Plan (the “eBay
401(k) Trust”) to the PayPal 401(k) Trust, the account balances of PayPal Group Employees under the eBay 401(k) Plan, determined as of the date of the transfer. Unless otherwise agreed by the parties, such transfers shall be made in kind,
including promissory notes evidencing the transfer of outstanding loans. Any Asset and Liability transfers pursuant to this Section 5.01 shall comply in all respects with Sections 414(l) and 411(d)(6) of the Code and if required,
shall be made not less than thirty (30) days after eBay shall have filed the notice under Section 6058(b) of the Code. The parties agree that to the extent that any assets are not transferred in kind, the assets transferred will be mapped
into an appropriate investment vehicle. 

  
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 (c) PayPal 401(k) Plan Provisions. The PayPal 401(k) Plan shall provide that:

 (i) PayPal Group Employees shall be eligible to participate in the PayPal 401(k) Plan as of the Effective Time to the
extent that they were eligible to participate in the eBay 401(k) Plan as of immediately prior to the Effective Time; 
 (ii)
the account balance of each PayPal Group Employee under the eBay 401(k) Plan as of the date of the transfer of Assets from the eBay 401(k) Plan (including any outstanding promissory notes relating to outstanding loans) shall be credited to such
individual’s account under the PayPal 401(k) Plan; and 
 (iii) the PayPal 401(k) Plan shall assume and honor the terms
of all QDROs in effect under the eBay 401(k) Plan in respect of PayPal Group Employees immediately prior to the Effective Time (for PayPal Group Employees). 

(d) Plan Fiduciaries. For all periods at and after the Effective Time, the parties agree that the applicable fiduciaries of each
of the eBay 401(k) Plan and the PayPal 401(k) Plan, respectively, shall have the authority with respect to the eBay 401(k) Plan and the PayPal 401(k) Plan, respectively, to determine the investment alternatives, the terms and conditions with respect
to those investment alternatives and such other matters as are within the scope of their duties under ERISA and the terms of the applicable plan documents. 

(e) No Distributions. No PayPal Group Employee shall be entitled to a right to a distribution of his or her benefit under the
eBay 401(k) Plan as a result of his or her transfer of employment from the eBay Group to the PayPal Group nor as a result of the completion of the Separation. 

Section 5.02. Non-U.S. Retirement Plans. 

(a) Establishment of PayPal Non-U.S. Retirement Plans. Before the Effective Time, subject to and in compliance with applicable
Law or as otherwise provided in Section 2.03(b), the applicable determining body, person or group of persons of the PayPal Group shall adopt and establish PayPal Non-U.S. Retirement Plans for PayPal Group Employees and Former PayPal
Group Employees which through December 31, 2015 shall have terms comparable to those terms as of immediately prior to the Distribution Date as the eBay Non-U.S. Retirement Plans. Notwithstanding the foregoing, the applicable determining body,
person or group of persons of the PayPal Group may make such changes, modifications, or amendments to the PayPal Non-U.S. Retirement Plans as may be required by applicable Law or as are necessary to reflect the Separation. 

(b) Transfer of Assets and Assumption of Liabilities. As soon as practicable following the Effective Time, subject to and in
compliance with applicable Law, account balances (including statutory contributions and funds), or contracts of the PayPal Group Employees and, if applicable, Former PayPal Group Employees, shall be transferred from a member of the eBay Group or the
eBay Non-U.S. Retirement Plan to a member of the PayPal Group or the PayPal Non-U.S. Retirement Plan, as applicable. In the event any Non-U.S. Retirement Plan is a defined benefit plan, then if permissible under applicable Law, the Parties shall
cooperate to transfer the Assets and Liabilities, with respect to the benefits of PayPal Group Employees and Former PayPal  

  
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Group Employees, in a manner reasonably acceptable to the Parties in consultation with the applicable actuary for, or other relevant third-party administrator or other service provider of, any
such plan. As of the Effective Time and subject to the transfer described herein, eBay and the eBay Non-U.S. Retirement Plans shall be relieved of all Liabilities for those benefits transferred and PayPal shall, and shall cause the PayPal Non-U.S.
Retirement Plan, to assume all Liabilities under the eBay Non-U.S. Retirement Plans for the benefits of PayPal Group Employees and, if applicable, Former PayPal Group Employees determined immediately prior to the Effective Time. For the avoidance of
doubt, in any non-U.S. jurisdiction where account balances, contracts or assets relating to benefits are not permitted to be transferred, eBay shall remain liable to the extent it is otherwise liable under applicable Law with respect to such
benefits relating to account balances, contracts or assets not transferred. 
 ARTICLE VI 

NONQUALIFIED DEFERRED COMPENSATION PLAN 

Section 6.01. PayPal Deferred Compensation Plan. 

(a) Establishment of the Deferred Compensation Plan. Before the Effective Time, PayPal shall establish the PayPal Deferred Compensation
Plan, which through December 31, 2015, shall have substantially the same terms as of immediately prior to the Effective Time as the eBay Deferred Compensation Plan. Notwithstanding the foregoing, PayPal may make such changes, modifications or
amendments to the PayPal Deferred Compensation Plan as may be required by applicable Law or as are necessary and appropriate to reflect the Separation. The PayPal Deferred Compensation Plan shall assume and honor the terms of all QDROs and any other
domestic relations orders in effect under the eBay Deferred Compensation Plan in respect of PayPal Group Employees immediately prior to the Effective Time. 

(b) Assumption of Liabilities from eBay. As of the Effective Time, PayPal shall, and shall cause the PayPal Deferred Compensation Plan
to, assume all Liabilities under the eBay Deferred Compensation Plan for the benefits of PayPal Group Employees determined as of immediately prior to the Effective Time, and the eBay Deferred Compensation Plan shall be relieved of all Liabilities
for those benefits. eBay shall retain all Liabilities under the eBay Deferred Compensation Plan for the benefits for eBay Group Employees, Former eBay Group Employees and Former PayPal Group Employees. From and after the Effective Time, PayPal Group
Employees shall cease to be participants in the eBay Deferred Compensation Plan. 
 Section 6.02. Participation; Distributions.
The Parties acknowledge that none of the transactions contemplated by this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement will trigger a payment or distribution of compensation under any of the eBay Deferred
Compensation Plans or the PayPal Deferred Compensation Plans for any participant and, consequently, that the payment or distribution of any compensation to which such participant is entitled under any of the eBay Deferred Compensation Plans or the
PayPal Deferred Compensation Plans will occur upon such participant’s separation from service from the PayPal Group or at such other time as provided in the applicable PayPal Nonqualified Plan or participant’s deferral election. 

  
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 ARTICLE VII 

WELFARE BENEFIT PLANS 

Section 7.01. Welfare Plans. 

(a) Establishment of PayPal Welfare Plans. Before the Effective Time and except as otherwise set forth in this Article VII,
PayPal shall, or shall cause the applicable member of the PayPal Group to, or shall engage in negotiations to, establish the PayPal Welfare Plans (including statutorily required plans such as provident funds, gratuity and insurance to the extent
applicable), which through December 31, 2015 shall have terms substantially similar in the aggregate as of immediately prior to the Effective Time as to those of the corresponding eBay Welfare Plans. Notwithstanding the foregoing, PayPal may
make such changes, modifications or amendments to the PayPal Welfare Plans as may be required by applicable Law or as are necessary and appropriate to reflect the Separation or which result from vendor limitations. 

(b) Waiver of Conditions; Benefit Maximums. PayPal shall use commercially reasonable efforts to cause the PayPal Welfare Plans to: 

(i) with respect to initial enrollment as of the Effective Time, waive (A) all limitations as to preexisting conditions,
exclusions, and service conditions with respect to participation and coverage requirements applicable to any PayPal Group Employee or Former PayPal Group Employee, other than limitations that were in effect with respect to the PayPal Group Employee
or Former PayPal Group Employee under the applicable eBay Welfare Plan as of immediately prior to the Effective Time, and (B) any waiting period limitation or evidence of insurability requirement applicable to a PayPal Group Employee or Former
PayPal Group Employee other than limitations or requirements that were in effect with respect to such PayPal Group Employee or Former PayPal Group Employee under the applicable eBay Welfare Plans as of immediately prior to the Effective Time; and

 (ii) take into account (A) with respect to aggregate annual, lifetime, or similar maximum benefits available under
the PayPal Welfare Plans, a PayPal Group Employee’s or Former PayPal Group Employee’s prior claim experience under the eBay Welfare Plans and any eBay Benefit Plan that provides leave benefits; and (B) any eligible expenses incurred
by a PayPal Group Employee or Former PayPal Group Employee during the portion of the plan year of the applicable eBay Welfare Plan ending as of the Effective Time to be taken into account under such PayPal Welfare Plan for purposes of satisfying all
deductible, coinsurance, and maximum out-of-pocket requirements applicable to such PayPal Group Employee or Former PayPal Group Employee for the applicable plan year to the same extent as such expenses were taken into account by eBay for similar
purposes prior to the Effective Time as if such amounts had been paid in accordance with such PayPal Welfare Plan. 
 (c) Health Savings
Accounts. Before the Effective Time, PayPal shall, or shall cause a member of the PayPal Group to, establish a PayPal Welfare Plan that will provide health savings account benefits to PayPal Group Employees on and after the Effective Time (a
“PayPal HSA”). It is the intention of the Parties that all activity under a PayPal Group Employee’s health 

  
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savings account under an eBay Welfare Plan (a “eBay HSA”) for the year in which the Effective Time occurs be treated instead as activity under the corresponding account under the
PayPal HSA, such that (i) any period of participation by a PayPal Group Employee in an eBay HSA during the year in which the Effective Time occurs will be deemed a period when such PayPal Group Employee participated in the corresponding PayPal
HSA; (ii) all expenses incurred during such period will be deemed incurred while such PayPal Group Employee’s coverage was in effect under the corresponding PayPal HSA; (iii) all elections and reimbursements made with respect to such
period under the eBay HSA will be deemed to have been made with respect to the corresponding PayPal HSA; and (iv) for purposes of determining the total annual employer contribution made on behalf of a PayPal Group Employee, employer
contributions made with respect to such period under the eBay HSA will be deemed to have been made with respect to the corresponding PayPal HSA. 

(d) Flexible Spending Accounts. The Parties shall use commercially reasonable efforts to ensure that as of the Effective Time any health
or dependent care flexible spending accounts of PayPal Group Employees (whether positive or negative) (the “Transferred Account Balances”) under eBay Welfare Plans that are health or dependent care flexible spending account plans
are transferred, as soon as practicable after the Effective Time, from the eBay Welfare Plans to the corresponding PayPal Welfare Plans. Such PayPal Welfare Plans shall assume responsibility as of the Effective Time for all outstanding health or
dependent care claims under the corresponding eBay Welfare Plans of each PayPal Group Employee for the year in which the Effective Time occurs and shall assume and agree to perform the obligations of the corresponding eBay Welfare Plans from and
after the Effective Time. As soon as practicable after the Effective Time, and in any event within 30 days after the amount of the Transferred Account Balances is determined or such later date as mutually agreed upon by the Parties, PayPal shall pay
eBay the net aggregate amount of the Transferred Account Balances, if such amount is positive, and eBay shall pay PayPal the net aggregate amount of the Transferred Account Balances, if such amount is negative. 

(e) Allocation of Welfare Liabilities. Except as otherwise set forth in Article VII: 

(i) The eBay Group and the eBay Welfare Plans shall remain responsible for all Liabilities to, or in respect of, PayPal Group
Employees and Former PayPal Group Employees relating to or arising in connection with any claims relating to medical, dental, hospitalization, vision, prescription drug or other health arrangement, long-term disability, life, accidental death and
dismemberment and business travel accident insurance, which claims are incurred before the Effective Time and the PayPal Group and the PayPal Group Welfare Plans shall be responsible for all Liabilities to, or in respect of, PayPal Group Employees
and Former PayPal Group Employees relating to or arising in connection with any claims for medical, dental, hospitalization, vision, prescription drug or other health arrangement, long-term disability, life, accidental death and dismemberment and
business travel accident insurance, which claims are incurred at or after the Effective Time; 

  
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 (ii) With respect to claims for short-term disability (a) the PayPal Group
shall be responsible for (i) claims incurred in respect of PayPal Group Employees and Former PayPal Group Employees, occurring at or after the Effective Time and (ii) amounts owed with respect to the period commencing on the Effective Time
with respect to a claim incurred prior to the Effective Time (for the avoidance of doubt, if a PayPal Group Employee is on short-term disability on the Effective Time for a claim incurred prior to the Effective Time, the PayPal Group shall be
responsible for short-term disability payments with respect to the period commencing at the Effective Time and if such claim as incurred prior to the Effective Time becomes a long-term disability claim, such claim shall be subject to the provision
of subsection (i) hereof); 
 (iii) The PayPal Group shall assume Liability relating to, arising out of or resulting
from all other welfare coverage or claims incurred by or on behalf of any PayPal Group Employee or Former PayPal Group Employee under any eBay Welfare Plan or PayPal Welfare Plan before, at or after the Effective Time; 

(iv) For these purposes, a claim or Liability is deemed to be incurred: (a) with respect to medical, dental, vision and/or
prescription drug benefits, upon the rendering of health services giving rise to such claim or Liability; (b) with respect to life insurance, accidental death and dismemberment and business travel accident insurance, upon the occurrence of the
event giving rise to such claim or Liability; and (c) with respect to disability benefits, upon the date of an Employee’s disability, as determined by the disability benefit insurance carrier or claim administrator, giving rise to such
claim or Liability; 
 (v) The eBay Group and the eBay Welfare Plans shall remain liable for any Liabilities relating to
audit or compliance of the eBay Welfare Plans; and 
 (vi) At and after the Effective Time, no eBay Welfare Plan shall
provide coverage to any PayPal Group Employee or Former PayPal Group Employee. 
 (f) Establishment of High Deductible Health
Plan. Effective as of the Effective Time, PayPal shall or cause a member of the PayPal Group to establish a high deductible health plan option with related health savings account and limited purpose health care spending account benefits.

 Section 7.02. COBRA. The eBay Group shall be responsible for complying with, and providing coverage pursuant to, the
health care continuation requirements of COBRA, and the corresponding provisions of the eBay Welfare Plans with respect to any Employees and any Former Employees (and their covered dependents) who incur a qualifying event or loss of coverage (within
the meaning of COBRA) before the Effective Time. Effective as of the Effective Time, the PayPal Group shall be responsibility for complying with, and providing coverage pursuant to, the health care continuation requirements of COBRA, and the
corresponding provisions of the PayPal Welfare Plans with respect to any PayPal Group Employees or Former PayPal Group Employees (and their covered dependents) who incur a qualifying event or loss of coverage (within the meaning of COBRA) under the
PayPal Welfare Plans at or after the Effective Time. The Parties agree that the consummation of the transactions contemplated by the Separation and Distribution Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA for
purposes of applying the principals set forth in this Section 7.02. 

  
 -36- 

 Section 7.03. Paid Time Off, Holidays and Leaves of Absence. Effective as of the
Effective Time, the PayPal Group shall assume all Liabilities of the eBay Group with respect to paid time off, holiday, annual leave or other leave of absence, and required payments related thereto regardless of whether such liabilities originated
prior to the Effective Time, for each PayPal Group Employee or Former PayPal Group Employee unless otherwise required by applicable Law. The eBay Group shall retain all Liabilities with respect to paid time off, holiday, annual leave or other leave
of absence (including sabbatical leave), and required payments related thereto, for each eBay Group Employee and Former eBay Group Employee. 

Section 7.04. Severance and Unemployment Compensation. Effective as of the Effective Time, the PayPal Group shall assume any and
all Liabilities to, or relating to, PayPal Group Employees and Former PayPal Group Employees in respect of severance and unemployment compensation, regardless of whether the event giving rise to the Liability occurred before, at or after the
Effective Time. The eBay Group shall be responsible for any and all Liabilities to, or relating to, eBay Group Employees and Former eBay Group Employees in respect of severance and unemployment compensation, regardless of whether the event giving
rise to the Liability occurred before, at or after the Effective Time. 
 Section 7.05. Sabbatical Plans and Sabbatical Trusts.
Effective as of the Effective Time, the applicable determining body, person or group of persons of the PayPal Group shall establish the PayPal Sabbatical Plans, which through December 31, 2015 shall have substantially the same terms as of
immediately prior to the Effective Time as the corresponding eBay Sabbatical Plans. Notwithstanding the foregoing, the applicable determining body, person or group of persons of the PayPal Group may make such changes, modifications or amendments to
the PayPal Sabbatical Plans as may be required by applicable Law or as are necessary and appropriate to reflect the Separation. PayPal shall adopt the PayPal Sabbatical Trusts. From and after the Effective Time, the PayPal Group and the PayPal
Sabbatical Plans and PayPal Sabbatical Trusts shall be responsible for and assume all Liabilities relating to PayPal Group Employees and Former PayPal Group Employees that would have been satisfied by the eBay Group and the eBay Sabbatical Trusts
had the Distribution not occurred, and neither any member of the eBay Group nor the eBay Sabbatical Plans or eBay Sabbatical Trusts shall have any Liabilities with respect thereto. In connection with the establishment by the PayPal Group of the
PayPal Sabbatical Plans, as of the Effective Time, the applicable determining body, person or group of persons of the eBay Group shall, or shall cause the eBay Sabbatical Trusts to, transfer Assets (whether in cash or in kind as determined by eBay)
to the PayPal Sabbatical Trusts in an amount equal to the product of (i) the fair market value of the Assets of the eBay Sabbatical Trusts immediately prior to the Effective Time (or such other date or time as may be agreed by the Parties) and
(ii) the percentage of Liabilities to be assumed by the PayPal Group under the eBay Sabbatical Plans as of April 1, 2015 (or such other date or time as may be agreed by the Parties) out of the total Liabilities of the eBay Sabbatical Plans
as of April 1, 2015 (or such other date or time as may be agreed by the Parties) (for the avoidance of doubt and as an example, if PayPal Group’s portion of the liability of the eBay Sabbatical Plans is 41.24%, the PayPal Sabbatical Trusts
will receive 41.24% of the Assets of the eBay Sabbatical Trusts, subject to any adjustments described below). For purposes of the preceding sentence, Liabilities under the eBay Sabbatical Plans shall be measured as of immediately prior to
April 1, 2015 (or such other date or time as may be agreed by the Parties) on a target funding basis without regard to interest discounting and otherwise based on the assumptions set forth in the December 31, 2014 actuarial valuation for
the eBay Sabbatical Plan 

  
 -37- 

 
prepared by Buck Consultants, LLC. The amount of assets to be transferred shall be adjusted for earnings and distributions, if any, through the actual date of transfer. 

Section 7.06. Workers’ Compensation. With respect to claims for workers’ compensation in the United States,
(a) the PayPal Group shall be responsible for claims in respect of PayPal Group Employees and Former PayPal Group Employees, occurring at or after the Effective Time, (b) the eBay Group shall be responsible for all claims in respect of
eBay Group Employees and Former eBay Group Employees, whether occurring at or after the Effective Time and (c) the eBay Group should be responsible for all claims in respect of PayPal Group Employees and Former PayPal Group Employees occurring
before the Effective Time. The treatment of workers’ compensation claims by PayPal with respect to eBay insurance policies shall be governed by Section 5.1 of the Separation and Distribution Agreement; provided, that for purposes of claims
referenced in this Section 7.06, a claim shall be deemed incurred when the injury giving rise to any claim made under the applicable workers compensation policy occurs. 

Section 7.07. Insurance Contracts. To the extent that any eBay Welfare Plan is funded through the purchase of an insurance
contract or is subject to any stop loss contract, the Parties will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for PayPal (except to the extent that changes are required under applicable state
insurance Laws or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both eBay and PayPal for a reasonable term. Neither Party shall be liable for failure to obtain such insurance contracts,
pricing discounts, or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 7.07. 

Section 7.08. Third-Party Vendors. Except as provided below, to the extent that any eBay Welfare Plan is administered by a
third-party vendor, the Parties will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for PayPal and to maintain any pricing discounts or other preferential terms for both eBay and PayPal
for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such
Party may incur pursuant to this Section 7.08. 
 Section 7.09. Fringe Benefits. Effective as of the Effective Time,
PayPal shall or shall cause the applicable member of the PayPal Group to adopt the PayPal Fringe Benefit Plans, which through December 31, 2015 shall have terms that are substantially similar in the aggregate as of immediately prior to the
Effective Time as those of the eBay Fringe Benefit Plans. Notwithstanding the foregoing, PayPal may make such changes, modifications or amendments to the PayPal Fringe Benefit Plans as may be required by applicable Law or as are necessary and
appropriate to reflect the Separation or which result from vendor limitations. As of the Effective Time, PayPal shall, and shall cause the PayPal Fringe Benefit Plans to, assume all Liabilities under the eBay Fringe Benefit Plans for the benefits of
PayPal Group Employees and Former PayPal Group Employees regardless of whether the event giving rise to the Liability occurred before, at or after the Effective Time, and the eBay Fringe Benefit Plans shall be relieved of all Liabilities for those
benefits. eBay shall retain all Liabilities under the eBay Fringe Benefit Plans for the benefits for eBay Group Employees and Former eBay Group Employees and after the Effective Time, 

  
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PayPal Group Employees and Former PayPal Group Employees shall cease to be participants in the eBay Fringe Benefit Plans. 

ARTICLE VIII 
 NON-U.S. EMPLOYEES

 PayPal Group Employees and Former PayPal Group Employees who are residents outside of the United States or otherwise are subject to
non-U.S. Law and their related benefits and Liabilities shall be treated in the same manner as the PayPal Group Employees and Former PayPal Group Employees, respectively, who are residents of the United States and are not subject to non-U.S. Law.
Notwithstanding anything in this Agreement to the contrary, all actions taken with respect to non-U.S. Employees or U.S. Employees working in non-U.S. jurisdictions, including any action under a Benefit Plan, shall be subject to and accomplished in
accordance with applicable Law in the custom of the applicable jurisdictions and PayPal may make such changes, modifications or amendments to the PayPal Benefit Plans as may be required by applicable Law, vendor limitations or as are necessary to
reflect the Separation. 
 ARTICLE IX 

MISCELLANEOUS 
 Section 9.01.
Employee Records. 
 (a) Sharing of Information. Subject to and in compliance with any limitations imposed by applicable Law,
eBay and PayPal (acting directly or through members of the eBay Group or the PayPal Group, respectively) shall provide to the other and their respective authorized agents and vendors all information necessary (including information for purposes of
determining benefit eligibility, participation, vesting and calculation of benefits) on a timely basis under the circumstances for the parties to perform their respective duties under this Agreement. To the extent that such information is maintained
by a third party vendor, each party shall use its commercially reasonable best efforts to require the third party vendor to provide the necessary information and assist in resolving discrepancies or obtaining missing data. 

(b) Transfer of Personnel Records and Authorization. Subject to and in compliance with any limitation imposed by applicable Law and to
the extent that it has not done so before the Effective Time, eBay shall transfer to PayPal any and all employment records (including any Form I-9, Form W-2 or other IRS and relevant tax forms applicable in any non-U.S. jurisdiction) with respect to
PayPal Group Employees and Former PayPal Group Employees and other records reasonably required by PayPal to enable PayPal properly to carry out its obligations under this Agreement. Subject to and in compliance with any limitation imposed by
applicable Law and to the extent that it has not done so before the Effective Time, PayPal shall transfer to eBay any and all employment records (including any Form I-9, Form W-2 or other IRS and relevant Tax forms applicable in any non-U.S.
jurisdiction) with respect to eBay Group Employees and Former eBay Group Employees and other records reasonably required by eBay to enable eBay properly to carry out its obligations under this Agreement. The transfer of records generally shall occur
as soon as administratively practicable at or after the Effective Time. Each Party will permit the other Party reasonable access to Employee records, to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder.

  
 -39- 

 (c) Access to Records. To the extent not inconsistent with this Agreement, the Separation
and Distribution Agreement or any applicable privacy protection Laws or regulations, reasonable access to Employee-related and benefit plan-related records after the Effective Time will be provided to members of the eBay Group and members of the
PayPal Group pursuant to the terms and conditions of Article VI of the Separation and Distribution Agreement. 
 (d) Maintenance of
Records. With respect to retaining, destroying, transferring, sharing, copying and permitting access to all Employee-related information, eBay and PayPal shall comply with all applicable Laws, regulations and internal policies, and shall
indemnify and hold harmless each other from and against any and all Liability, claims, actions, and damages that arise from a failure (by the indemnifying Party or its Subsidiaries or their respective agents) to so comply with all applicable Laws,
regulations and internal policies applicable to such information. 
 (e) Cooperation. Each Party shall use commercially reasonable
efforts to cooperate and work together to unify, consolidate and share (to the extent permissible under applicable privacy/data protection laws) all relevant documents, resolutions, government filings, data, payroll, employment and benefit plan
information on regular timetables and cooperate as needed with respect to (i) any claims or reasonable inquiry under or audit of or litigation with respect to any employee benefit plan, policy or arrangement contemplated by this Agreement,
(ii) efforts to seek a determination letter, private letter ruling or advisory opinion from the IRS or U.S. Department of Labor, or other comparable non-U.S. letter, ruling or opinion from any other Governmental Authority as applicable, in any
such case on behalf of any employee benefit plan, policy or arrangement contemplated by this Agreement, (iii) any filings that are required to be made or supplemented to the IRS, U.S. Pension Benefit Guaranty Corporation, U.S. Department of
Labor or any other Governmental Authority and (iv) any audits by a Governmental Authority or corrective actions in either case, relating to any Benefit Plan, labor or payroll practices, including but not limited to with respect to any
Employment Taxes, and (v) reconciliation and administration of post-closing compensation, benefit, employment, and payroll issues; provided, however, that requests for cooperation must be reasonable and not interfere with daily
business operations. 
 (f) Confidentiality. Notwithstanding anything in this Agreement to the contrary, all confidential records and
data relating to Employees to be shared or transferred pursuant to this Agreement shall be subject to Section 6.9 of the Separation and Distribution Agreement and the requirements of applicable Law. 

(g) Interaction with Other Agreements. To the extent not inconsistent with this Agreement or any applicable privacy protection
Laws or regulations, the foregoing rights and obligations of this Section 9.01 shall be in addition to any similar or related rights and obligations that may be provided or applicable to members of the eBay Group or members of the PayPal Group,
as applicable, under the Separation and Distribution Agreement, Tax Matters Agreement and/or Intellectual Property Matters Agreement, if and as applicable. 

Section 9.02. Preservation of Rights to Amend. The rights of each member of the eBay Group and each member of the PayPal Group to
amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement. 

  
 -40- 

 Section 9.03. Fiduciary Matters. eBay and PayPal each acknowledges that actions
required to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any
provisions hereof based upon its good-faith determination (which determination may include, but shall not be required to be, based on advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard.
Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to
satisfy any such responsibility. 
 Section 9.04. Further Assurances. Each Party hereto shall take, or cause to be taken, any
and all reasonable actions, including the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may reasonably request in order to effect the intent and purpose of this Agreement and the
transactions contemplated hereby. 
 Section 9.05. Counterparts; Entire Agreement; Corporate Power. 

(a) This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party. 
 (b) This Agreement, the
Separation and Distribution Agreement and the Ancillary Agreements and the Exhibits, Schedules and appendices hereto and thereto contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous
agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein or
therein. eBay represents on behalf of itself and, to the extent applicable, each other member of the eBay Group, and PayPal represents on behalf of itself and, to the extent applicable, each other member of the PayPal Group, as follows: 

(i) each such Person has the requisite corporate or other power and authority and has taken all corporate or other action
necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and 

(ii) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable
in accordance with the terms hereof. 
 (c) Each Party acknowledges that it and each other Party is executing this Agreement by facsimile,
stamp or mechanical signature and that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be
effective as delivery of such executed counterpart of this Agreement. Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by
email in portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it will not 

  
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assert that any such signature or delivery is not adequate to bind such Party to the same extent as if it were signed manually and delivered in person and agrees that, at the reasonable request
of the other Party at any time, it will as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to be as of the date of the initial date thereof) and delivered in person, by mail or by courier. 

Section 9.06. Governing Law. This Agreement (and any claims or disputes arising out of or related hereto or to the transactions
contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in
accordance with the laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware, including all matters of validity, construction, effect, enforceability, performance and remedies. 

Section 9.07. Assignability. This Agreement will be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns; provided, that neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party. Notwithstanding the foregoing, no such consent will
be required for (i) the assignment of a Party’s rights and obligations under this Agreement in whole or in part to any of its Subsidiaries; provided, that no such assignment shall release such Party from any liability or obligation under
this Agreement; or (ii) the assignment of a Party’s rights and obligations under this in whole (i.e., the assignment of a party’s rights and obligations under this Agreement, the Separation and Distribution Agreement and all
Ancillary Agreements all at the same time) in connection with a change of control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant party thereto by operation of Law or pursuant to an
agreement in form and substance reasonably satisfactory to the other Party. Nothing herein is intended to, or will be construed to, prohibit either Party or any member of its Group from being party to or undertaking a change of control. 

Section 9.08. Third-Party Beneficiaries. The provisions of this Agreement are solely for the benefit of the Parties and are not
intended to confer upon any other Person except the Parties any rights or remedies hereunder. There are no third-party beneficiaries of this Agreement and this Agreement shall not provide any other third person with any remedy, claim, Liability,
reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or
terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, independent contractor, consultant, alternative
workforce (AWF) individual or any other individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. 

Section 9.09. Notices. All notices, requests, claims, demands or other communications under this Agreement shall be in writing,
together with a copy by electronic mail (which shall not constitute notice) and shall be given or made (and shall be deemed to have been duly given or made upon acknowledgement of receipt) by delivery in person, by overnight courier service, by
facsimile, or by registered or certified mail (postage prepaid, return receipt requested) to the 

  
 -42- 

 
respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 9.09): 

If to eBay, to: 
 eBay Inc. 

2065 Hamilton Avenue 
 San Jose,
California 95125 
 Attention: General Counsel 

Email: mhuber@ebay.com 
 If to
PayPal, to: 
 PayPal Holdings, Inc. 

2211 North First Street 
 San
Jose, California 95131 
 Attention: General Counsel 

Email: apentland@paypal.com 
 A
Party may, by notice to the other Party, change the address to which such notices are to be given. 
 Section 9.10.
Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the
application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated
thereby. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties. 

Section 9.11. Force Majeure. No Party shall be deemed in default of this Agreement or, unless otherwise expressly provided
therein, any Ancillary Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder or thereunder so long as and to the extent to which any delay or failure in the fulfillment of such obligation is
prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance of such obligation (other than a payment obligation) shall be extended for a period equal
to the time lost by reason of the delay. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide written notice to the other Party of the nature and extent of
any such Force Majeure condition; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement and the Ancillary Agreements, as applicable, as soon as reasonably practicable. 

Section 9.12. Headings. The article, section and paragraph headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement. 

  
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 Section 9.13. Survival of Covenants. Except as expressly set forth in this Agreement,
the covenants, representations and warranties and other agreements contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Separation and the Distribution and shall remain in full force and
effect in accordance with its terms. 
 Section 9.14. Waivers of Default. Waiver by a Party of any default by the other Party of
any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other Party. No failure or delay by Party in exercising any right, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege. 

Section 9.15. Dispute Resolution. The dispute resolution procedures set forth in Article VII of the Separation and
Distribution Agreement shall apply to any dispute, controversy or claim arising out of or relating to this Agreement. 
 Section 9.16.
Specific Performance. Subject to Article VII of the Separation and Distribution Agreement, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or Parties
who are, or are to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief (on an interim or permanent basis) in respect of its rights or their rights under this Agreement, in addition to any and
all other rights and remedies at Law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at Law for any breach or threatened breach, including monetary damages, may be inadequate compensation for
any loss and that any defense in any Action for specific performance that a remedy at Law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are hereby waived by each of the Parties. 

Section 9.17. Amendments. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party,
unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification. 

Section 9.18. Interpretation. In this Agreement, (a) words in the singular shall be deemed to include the plural and vice
versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be
construed to refer to this Agreement as a whole (including all of the Schedules, Exhibits and Appendices hereto and thereto) and not to any particular provision of this Agreement; (c) Article, Section, Schedule, Exhibit, and Appendix references
are to the Articles, Sections, Schedules, Exhibits, and Appendices to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such
agreement; (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive;
(g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions
are generally authorized or required by law to close in the United States or San Jose, 

  
 -44- 

 
California; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it
is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this
Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to July 17, 2015. 

Section 9.19. Limitations of Liability. Notwithstanding anything in this Agreement to the contrary, neither PayPal or any member
of the PayPal Group, on the one hand, nor eBay or any member of the eBay Group, on the other hand, shall be liable under this Agreement to the other for any indirect, punitive, exemplary, remote, speculative or similar damages in excess of
compensatory damages of the other arising in connection with the transactions contemplated hereby (other than any such Liability with respect to a Third-Party Claim). 

Section 9.20. Mutual Drafting. This Agreement shall be deemed to be the joint work product of both Parties and any rule of
construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable to this Agreement. 

[Remainder of page intentionally left blank] 

  
 -45- 

 IN WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be executed by
their duly authorized representatives. 
  

			
	EBAY INC.
		
	By:	 	 /s/ John J. Donahoe

		 	Name: John J. Donahoe
		 	Title: President and Chief Executive Officer
	
	PAYPAL HOLDINGS, INC.
		
	By:	 	 /s/ Daniel H. Schulman

		 	Name: Daniel H. Schulman
		 	Title: President and CEO-Designee

 [Signature Page to Employee Matters Agreement] 

 Schedule 1.01(a) 

eBay Fringe Benefit Plans 
 Adoption
Assistance 
 Family Care Resources (Child/Eldercare, etc.) 

Pre-paid Legal Benefits 
 Survivor Counseling 

Tuition Assistance 

 Schedule 1.01(b) 

eBay Welfare Plans 
  

			
	 Plan / Program / Policy
	  	 Vendor

	Medical: PPO 300	  	Blue Shield CA
	Medical: PPO 750	  	Blue Shield CA
	Medical: EPO	  	Blue Shield CA
	Medical: CDHP	  	Blue Shield CA
	Medical: HMO	  	Kaiser CA
	Medical: HMO	  	Kaiser CO
	Medical: HMO	  	Select Health
	Medical: HMO	  	HealthNet
	Health Savings Account	  	Health Equity
	Pharmacy	  	CVS/Caremark
	Stop Loss	  	Voya
	Dental	  	Delta
	Vision	  	VSP
	EAP – National Plan (except Nebraska)	  	Magellan
	EAP – Nebraska Plan	  	Arbor
	Expert Medical Opinion	  	Advance Medical
	Health Care FSA	  	Your Spending Account
	Dependent Care FSA	  	Your Spending Account
	Basic Life	  	MetLife
	Supp Life – Employee	  	MetLife
	Supp Life – Spouse	  	MetLife
	Supp Life – Child	  	MetLife
	Basic AD&D	  	AC Newman
	Supp AD&D	  	AC Newman
	Healthy San Francisco	  	Healthy San Francisco
	STD	  	N/A
	SDI (NY, HI)	  	MetLife
	VDI eBay	  	State of CA
	VDI PayPal	  	State of CA
	LTD basic	  	MetLife
	LTD exec	  	TBD (MetLife)
	Sabbatical	  	N/A
	Leave Administration	  	Sedgwick
	PTO – eBay Inc.	  	N/A
	BTA	  	ACE American
	EAP Non-US	  	Optum
	International Medical, Dental, Vision	  	CIGNA

 Schedule 2.03(a) 

eBay Benefit Plans to Be Replicated by PayPal (subject to the terms of the Agreement) 

Equity, Incentive and Executive Compensation Plans 

eBay Equity Plan (including any sub-plans maintained in any non-U.S. jurisdiction) 

eBay Incentive Plan 
 eBay Employee Stock Purchase Plan (including
any sub-plans maintained in any non-U.S. jurisdiction) 
 Retirement and Deferred Compensation Plans 

eBay Inc. 401(k) Savings Plan 
 eBay Inc. Deferred Compensation
Plan 
 Welfare Plans 
 Schedule 1.01(b)
is incorporated herein by reference 
 Fringe Benefit Plans 

Schedule 1.01(a) is incorporated herein by reference 

 Schedule 2.03(b) 

eBay Benefit Plans Not Required to Be Replicated by PayPal 

Transition Success and Retention Program 
 Medicaid HMO HMSA

 PTO eBay Enterprise

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