eBay 1999 Annual Report Download - page 74

In July 1998, the Board adopted, and in August 1998 the Company’s stockholders approved, the
1998 Equity Incentive Plan (the ‘‘1998 Plan’’) and reserved 13,500,000 shares of Common Stock for issuance
thereunder. The 1998 Plan authorized the award of options, restricted stock awards and stock bonuses (each an
‘‘Award’’). No person will be eligible to receive more than 3,000,000 shares in any calendar year pursuant to
Awards under the 1998 Plan other than a new employee of the Company who will be eligible to receive no more
than 6,000,000 shares in the calendar year in which such employee commences employment. Options granted
under the 1998 Plan may be either ISOs or NSOs. ISOs may be granted only to Company employees (including
officers and directors who are also employees). NSOs may be granted to Company employees, officers, directors,
consultants, independent contractors and advisors of the Company.
In October 1999, the Board of Directors adopted the 1999 Global Equity Incentive Plan (‘‘the 1999 Plan’’)
and reserved 2,500,000 shares of Common Stock for issuance thereunder. Options may be granted to Company
employees, directors, and consultants and in particular those to Company employees, directors, and consultants
who are neither citizens nor residents of the United States of America.
In May 1999, in connection with the Company’s acquisition of Billpoint, the Company assumed Billpoint’s
1999 Stock Plan, and all options outstanding under the plan. At the time of the acquisition, the outstanding
options became options to purchase approximately 100,000 shares of eBay common stock. The Company will
make no further option grants under this plan.
Options under the Plans may be granted for periods of up to ten years and at prices no less than 85% of the
estimated fair value of the shares on the date of grant as determined by the Board of Directors, provided,
however, that (i) the exercise price of an ISO may not be less than 100% of the estimated fair value of the shares
on the date of grant, and (ii) the exercise price of an ISO granted to a 10% shareholder may not be less than
110% of the estimated fair value of the shares on the date of grant. Options under the 1996 and 1997 Plans were
exercisable immediately through June 30, 1998, subject to repurchase rights held by the Company, which lapse
over the vesting period, which is generally four years. Options under the 1998 Plan are not immediately
exercisable and generally vest over a period of four years.
The following table summarizes activity under the Company’s stock option plans for the years ended
December 31, 1997, 1998 and 1999, (shares in thousands):
Year Ended December 31,
1997 1998 1999
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
Outstanding at beginning of
period................... 675 $0.01 11,790 $0.02 9,246 $ 3.68
Granted . .............. 11,592 0.02 17,287 2.15 6,105 129.17
Exercised . ............. — — (19,477) 0.14 (1,775) 3.90
Cancelled . ............. (477) 0.01 (354) 1.67 (458) 77.92
Outstanding at end of period . . . . 11,790 0.02 9,246 3.68 13,118 59.45
Options exercisable at end of
period ................... 11,790 0.02 370 0.03 1,827 10.06
Weighted average fair value of
options granted during
period................... 0.10 2.80 210.06
eBAY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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