eBay 1998 Annual Report Download - page 75

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eBAY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
75
employees). NSOs may be granted to Company employees, officers, directors, consultants, independent contractors
and advisors of the Company.
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, 1996, 1997 and 1998, (shares in thousands):
Year Ended December 31,
1996 1997 1998
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
Granted ........................................................................ . 675 0.01 11,592 0.02 17,287 2.15
Exercised...................................................................... . — — — — (19,477) 0.14
Cancelled ..................................................................... . — — (477) 0.01 (354) 1.67
Outstanding at end of period............................................ . 675 0.01 11,790 0.02 9,246 3.68
Options exercisable at end of period................................ . 675 11,790 0.02 370 0.03
Weighted average fair value of
options granted during period. .................................... . 0.01
0.10
2.80
The following table summarizes information about fixed stock options outstanding at December 31, 1998,
(shares in thousands):
Options Outstanding at
December 31, 1998
Options Exercisable at
December 31, 1998
Range of
Exercise Prices
Number of
Shares
Outstanding
Weighted
Average
Remaining
Contractual Life
Weighted
Average
Exercise
Price
Number of
Shares
Exercisable
Weighted
Average
Exercise Price
$ 0.01 – $ 0.22 1,302 8.8 years $ 0.04 370 $ 0.03
0.67 – 1.00 943 9.3 0.75 — —
3.11 – 3.11 821 9.4 3.11 — —
4.67 – 5.00 6,165 9.6 4.91 — —
16.85 15 9.8 32.52 — —
9,246 9.5 3.68 370 0.03