eBay 2004 Annual Report Download - page 122

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Notes receivable from eBay executive oÇcers
At December 31, 2003 we held notes receivable from certain executive oÇcers totaling $630,000. During
2003, all but one of such outstanding notes were pre-paid in full. The remaining outstanding note was paid in
full during 2004.
Note 12 Ì Preferred Stock:
We are authorized, subject to limitations prescribed by Delaware law: to issue Preferred Stock in one or
more series; to establish the number of shares included within each series; to Ñx the rights, preferences and
privileges of the shares of each wholly unissued series and any related qualiÑcations, limitations or restrictions;
and to increase or decrease the number of shares of any series (but not below the number of shares of a series
then outstanding) without any further vote or action by the stockholders. At December 31, 2003 and 2004,
there were 10 million shares of Preferred Stock authorized for issuance, and no shares issued or outstanding.
Note 13 Ì Common Stock:
Our CertiÑcate of Incorporation, as amended, authorizes us to issue 1,790 million shares of common
stock. A portion of the shares outstanding are subject to repurchase over a four-year period from the earlier of
the issuance date or employee hire date, as applicable. At December 31, 2003 and 2004 there were 34,000 and
140,000 shares subject to repurchase rights, respectively.
At December 31, 2004, we had reserved 250.0 million shares of common stock available for future
issuance under our stock option plans, including 137.2 million shares related to outstanding stock options. In
addition, we had reserved approximately 4.0 million shares of common stock available for future issuance
under our deferred stock unit plan, and approximately 6.0 million shares of common stock available for future
issuance under our employee stock purchase plan.
Note 14 Ì Employee BeneÑt Plans:
Employee Stock Purchase Plan
We have an employee stock purchase plan for all eligible employees. Under the plan, shares of our
common stock may be purchased over an oÅering period with a maximum duration of two years at 85% of the
lower of the fair market value on the Ñrst day of the applicable oÅering period or on the last day of the six-
month purchase period. Employees may purchase shares having a value not exceeding 10% of their gross
compensation during an oÅering period. During the years ended December 31, 2002, 2003 and 2004,
employees purchased approximately 704,000, 1.2 million and 1.2 million shares at average prices of $11.31,
$12.79 and $20.66 per share, respectively. At December 31, 2004, approximately 6.0 million shares of
common stock were reserved for future issuance. Our employee stock purchase plan contains an ""evergreen''
provision that automatically increases, on each January 1, the number of shares reserved for issuance under
the employee stock purchase plan by the number of shares purchased under this plan in the preceding calendar
year.
401(k) Savings Plan
We have a savings plan, which qualiÑes under Section 401(k) of the Internal Revenue Code.
Participating employees may contribute up to 25% of their annual salary, but not more than statutory limits.
We contribute one dollar for each dollar a participant contributes, with a maximum contribution of $1,500 per
employee. Our matching contributions were $2.3 million in 2002, $3.9 million in 2003 and $5.6 million in
2004.
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