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USD ($)

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       &lt;td width="3%" nowrap="nowrap" align="left"&gt;&lt;b&gt;11.&lt;/b&gt;&lt;/td&gt;
       &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
       &lt;td&gt;
   &lt;div style="text-align: justify"&gt;&lt;b&gt;Compensation Plan for Outside Directors&lt;/b&gt;
   &lt;/div&gt;&lt;/td&gt;
   &lt;/tr&gt;
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   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"&gt;The Company compensated its outside directors through the payment of cash fees and, from time
   to time, through the issuance of equity awards. In 2009 and through June&amp;#160;10, 2010, each
   director was entitled to receive an annual cash retainer of $30,000. Additionally, the Chair
   of the Company&amp;#8217;s Audit Committee, Compensation Committee and Nominating and Corporate
   Governance Committee and the lead independent director of the Company were entitled to receive
   additional annual cash retainers of $15,000, $12,000, $5,000 and $10,000, respectively.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"&gt;On June&amp;#160;10, 2009, the Company issued an aggregate of 2,305 shares of common stock and 8,350
   restricted shares of common stock (the &amp;#8220;Restricted Shares&amp;#8221;) to the outside directors. The
   Restricted Shares vested in full in June&amp;#160;2010. Restricted Shares awarded to employees and
   directors were measured at their fair market value using the grant-date price of the Company&amp;#8217;s
   shares. For the years ended December&amp;#160;31, 2010, 2009 and 2008, the Company recognized $37,696,
   $85,689 and $115,566, respectively, of compensation expense related to these awards, which are
   included in operating expenses in the accompanying consolidated statement of income.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"&gt;For the years ended December&amp;#160;31, 2010, 2009 and 2008, the Company also recognized nil, $27,944
   and $105,560, respectively, of compensation expense related to prior awards of restricted
   shares to the outside directors, which amounts are included in operating expenses in the
   accompanying consolidated statement of income.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"&gt;On June&amp;#160;25, 2010, the Board of Directors of the Company (the &amp;#8220;Board&amp;#8221;), upon the recommendation
   of the Compensation Committee of the Board, adopted The MercadoLibre, Inc. 2010 Director
   Compensation Program (the &amp;#8220;Plan&amp;#8221;) for outside directors which is effective as of June&amp;#160;10, 2010.
   Under the terms of the plan, each outside director will receive an annual fee for services
   provided to the Company from June&amp;#160;10, 2010 to June&amp;#160;9, 2011 payable as follows: (a)&amp;#160;a
   Non-Adjustable Board Service Award which means a fixed cash payment of $32,436 and (b)&amp;#160;an
   Adjustable Award which means a fixed cash amount of $43,248 multiplied by the average closing
   sale price of the Company&amp;#8217;s share during the last 30-trading day period as of the date of the
   next Annual Meeting divided by the average closing sale price of the Company&amp;#8217;s share during the
   last 30-trading day period as of the date of the prior year&amp;#8217;s Annual Meeting. The plan also
   included a Non-Adjustable Chair Service Award for services provided to the Company from June
   10, 2010 to June&amp;#160;9, 2011. Under the terms of the plan, the Chair of the Company&amp;#8217;s Audit
   Committee, Compensation Committee and Nominating and Corporate Governance Committee and the
   lead independent director of the Company are entitled to receive annual cash compensation in
   addition to existing director compensation in the amount of $16,218, $12,974, $5,406 and
   $10,812, respectively. The total accrued compensation cost for the year ended December&amp;#160;31, 2010
   amounts to $280,247.
   &lt;/div&gt;
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   &lt;b&gt;
   &lt;/b&gt;
   &lt;/div&gt;
   &lt;/div&gt;
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 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 123R
 -Paragraph 64, 65

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