(Telecompaper) Ebay announced the next step in its planned spin-off of PayPal with the filing of an updated Form 10 with the Securities and Exchange Commission (SEC). The filing includes an updated summary of the operating agreement between eBay and PayPal, which details how the two companies will continue to partner with one another and provides additional information about the prospective financial impact of the agreements between the two companies. The operating agreement which will remain in effect for five years and have a one-year transition period is aimed at preserving the benefits of the existing relationship and ensuring that the separation is seamless for customers of both companies. Ebay said it offers flexible terms in order to preserve synergies, but will allow each company to pursue its own commercial strategy. For example, PayPal can work with all commerce/marketplace companies and eBay can offer its customers alternative payment providers. Ebay will be incentivized to grow new PayPal users. "Limited" non-compete agreements will still apply, such as PayPal cannot create its own marketplace for physical goods, and eBay cannot create its own payments system on the core eBay platform. A product development agreement means that PayPal will devote resources to develop new products for eBay, and eBay and PayPal will maintain service level agreements. In addition, eBay board member Tom Tierney was named chair of the new eBay board, replacing eBay founder Pierre Omidyar. Omidyar will serve on both the eBay and PayPal boards in a non-chair capacity. The aim is for the spin-off to take place in the second half of 2015.