eBay 2000 Annual Report Download - page 83

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
In May 1999, in connection with eBay's acquisition of Billpoint, eBay 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 200,000 shares of eBay common stock. eBay 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 eBay, 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 eBay's stock option plans for the years ended Decem-
ber 31, 1998, 1999 and 2000 (shares in thousands):
Year Ended December 31,
1998 1999 2000
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Shares Price Shares Price Shares Price
Outstanding at beginning of period ÏÏ 23,580 $0.01 18,493 $ 1.84 26,236 $ 29.73
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34,574 1.07 12,210 64.59 9,037 62.69
Exercised ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (38,954) 0.07 (3,551) 1.95 (4,499) 6.23
Cancelled ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (707) 0.83 (916) 38.96 (4,525) 65.41
Outstanding at end of period ÏÏÏÏÏÏÏ 18,493 1.84 26,236 29.73 26,249 38.99
Options exercisable at end of period ÏÏ 740 0.02 3,654 5.03 7,006 27.73
Weighted average grant date fair
value of options granted during
period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1.40 $105.03 $103.79
The following table summarizes information about Ñxed stock options outstanding at December 31, 2000,
(shares in thousands):
Options Outstanding at Options Exercisable at
December 31, 2000 December 31, 2000
Weighted Weighted
Number of Weighted Average Average Number of Average
Range of Shares Remaining Exercise Shares Exercise
Exercise Prices Outstanding Contractual Life Price Exercisable Price
$ 0.01 Ó $ 2.33 4,865 7.4 years $ 1.43 1,968 $ 1.33
2.50 Ó 2.50 5,900 7.7 2.50 2,228 2.50
3.83 Ó 53.83 4,368 9.2 43.96 667 44.02
53.88 Ó 66.63 3,444 9.2 60.56 521 62.13
66.91 Ó 75.19 4,070 8.9 71.07 944 70.38
75.25 Ó 116.31 3,602 8.9 86.57 678 85.44
26,249 8.4 $38.99 7,006 $27.73
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