eBay 2002 Annual Report Download - page 134

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
stock purchase plan will be increased automatically 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 $1.8 million in 2000, $1.7 million in 2001, and
$2.3 million in 2002.
Stock option plans
We have stock option plans for directors, oÇcers and employees, under which we have made to date
only nonqualiÑed and incentive stock option grants. These stock options generally vest 25% one year from
the date of grant and the remainder vests at a rate of 2.08% per month and expire 10 years from the date
of grant. Stock options issued prior to June 1998, were exercisable immediately, subject to repurchase
rights held by us, which lapse over the vesting period. At December 31, 2002, stock options for
22.2 million shares were available for future grant.
The following table summarizes activity under our stock option plans for the years ended
December 31, 2000, 2001 and 2002 (shares in thousands):
Year Ended December 31,
2000 2001 2002
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Shares Price Shares Price Shares Price
Outstanding at beginning of period ÏÏÏÏÏÏÏÏ 26,236 $29.73 26,249 $38.99 35,102 $46.24
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,037 62.69 19,621 46.87 16,866 53.42
Exercised ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4,499) 6.23 (6,813) 17.26 (9,769) 26.16
Cancelled ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4,525) 65.41 (3,955) 51.20 (5,023) 53.98
Outstanding at end of period ÏÏÏÏÏÏÏÏÏÏÏÏÏ 26,249 38.99 35,102 46.24 37,176 53.73
Options exercisable at end of period ÏÏÏÏÏÏÏ 7,006 27.73 10,465 41.67 13,124 52.58
Weighted average grant date fair value of
options granted during period ÏÏÏÏÏÏÏÏÏÏÏ $42.44 $23.67 $22.42
132