eBay 2000 Annual Report Download - page 82

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
In June 1998, in connection with the appointment of two outside directors, eBay sold an aggregate of
1,287,000 shares of common stock to two directors and realized net proceeds of $2.0 million. eBay recognized
the $429,000 excess of the estimated fair value of the stock over the price paid by the two directors as general
and administrative expense in 1998.
At December 31, 2000, eBay had reserved 18,114,107 and 1,005,652 shares of common stock for future
issuance for the exercise of options under the stock option plans and issuance of shares under the employee
stock purchase plan, respectively.
Note 14 Ì Employee BeneÑt Plans:
401(k) Savings Plan
eBay has a savings plan that qualiÑes as a deferred salary arrangement under Section 401(k) of the
Internal Revenue Code (the ""401(k) Plan''). Under the 401(k) Plan, participating employees may defer a
percentage (not to exceed 25%) of their eligible pretax earnings up to the Internal Revenue Service's annual
contribution limit. All employees on the United States payroll of eBay age 21 years or older are eligible to
participate in the 401(k) Plan. eBay had not been required to contribute to the 401(k) Plan but in 1998
elected to match contributions up to a maximum of $1,500 per employee, and committed to matching
contributions to a maximum of $1,500 per employee per year in future periods. As a result, eBay contributed
and expensed $97,000, $856,000 and $1.8 million in the years ended December 31, 1998, 1999 and 2000,
respectively.
As a result of the mergers with eBay in 1999 and 2000, ButterÑelds, Kruse, Billpoint, and Half.com
terminated any existing deÑned savings contribution plans and adopted eBay's 401(k) Plan.
Stock option plans
In December 1996, eBay's Board of Directors adopted the 1996 Stock Option Plan (the ""1996 Plan''), in
June 1997, adopted the 1997 Stock Option Plan (the ""1997 Plan''), in August 1998, adopted the 1998 Stock
Option Plan (the ""1998 Plan''), and in 1999 the 1999 Global Equity Incentive Plan (the ""1999 Plan'')
(collectively, the ""Plans''). The Plans provide for the granting of stock options to employees and consultants
of eBay. Options granted under the Plans may generally be either incentive stock options (""ISOs'') or
nonqualiÑed stock options (""NSOs''). ISOs may be granted only to eBay's employees (including oÇcers and
directors who are also employees). NSOs may be granted to eBay's employees and consultants.
In July 1998, the Board adopted, and in August 1998 eBay's stockholders approved, the 1998 Equity
Incentive Plan (the ""1998 Plan'') and reserved 27,000,000 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 6,000,000 shares in any calendar year pursuant to Awards
under the 1998 Plan other than a new employee of eBay who will be eligible to receive no more than
12,000,000 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 eBay's employees (including
oÇcers and directors who are also employees). NSOs may be granted to eBay's employees, oÇcers, directors,
consultants, independent contractors and advisors of eBay.
In October 1999, the Board of Directors adopted the 1999 Global Equity Incentive Plan (the ""1999
Plan'') and reserved 5,000,000 shares of common stock for issuance thereunder. Options may be granted to
eBay's employees, directors, and consultants and in particular to eBay's employees, directors, and consultants
who are neither citizens nor residents of the United States of America. The 1999 plan was approved by the
stockholders at the Annual Stockholders Meeting in May 2000.
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