eBay 2002 Annual Report Download - page 85

(3) Options were granted at an exercise price equal to the fair market value of our common stock, as
determined by the Board of Directors on the date of grant. The exercise prices per shares listed in the
table above are rounded to the nearest cent.
(4) ReÖects the value of the stock option on the date of grant assuming (i) for the 5% column, a 5%
annual rate of appreciation in our common stock over the ten-year term of the option and (ii) for the
10% column, a 10% annual rate of appreciation in our Common Stock over the ten-year term of the
option, in each case without discounting to net present value and before income taxes associated with
the exercise. The 5% and 10% assumed rates of appreciation are based on the rules of the SEC and
do not represent our estimate or projection of the future common stock price. The amounts in this
table may not necessarily be achieved.
The following table sets forth the number of shares acquired and the value realized upon exercise of
stock options during 2002 and the number of shares of our common stock subject to exercisable and
unexercisable stock options held as of December 31, 2002, by each of the Named Executive OÇcers. The
value at Ñscal year end is measured as the diÅerence between the exercise price and the fair market value
at close of market on December 31, 2002, which was $67.82.
Aggregate Option Exercises in 2002 and Values at December 31, 2002
Number of Securities
Underlying Unexercised Value of Unexercised
Options at December 31, In-the-Money Options at
Number of 2002 December 31, 2002(2)
Shares
Acquired on Value Exercisable Unexercisable Exercisable Unexercisable
Name Exercise Realized(1) (#) (#) ($) ($)
Margaret C. Whitman ÏÏÏÏÏ Ì Ì 218,750 831,250 $ 4,947,734 $18,801,391
Maynard G. Webb ÏÏÏÏÏÏÏÏ 400,000 $6,922,607 474,035 465,965 11,714,025 10,443,840
JeÅrey D. JordanÏÏÏÏÏÏÏÏÏÏ 133,328 2,576,137 355,901 334,648 2,253,147 5,438,814
Matthew J. Bannick ÏÏÏÏÏÏÏ 113,329 2,106,234 220,832 247,497 1,312,179 4,155,422
William C. CobbÏÏÏÏÏÏÏÏÏÏ 85,000 1,898,718 86,874 233,126 2,057,054 4,942,533
(1) Value realized is based on the fair market value of our common stock on date of exercise minus the
exercise price and does not necessarily reÖect proceeds actually received by the oÇcer.
(2) Calculated using the fair market value of our common stock on December 31, 2002 ($67.82) less the
exercise price of the option.
Compensation Committee Interlocks and Insider Participation
No member of the Compensation Committee is or was formerly an oÇcer or an employee of eBay.
No interlocking relationship exists between the Board of Directors or Compensation Committee and the
board of directors or compensation committee of any other company, nor has such interlocking relationship
existed in the past.
Mr. Kagle, a member of our Compensation Committee, is a member of the general partner of certain
venture capital funds that beneÑcially hold greater than 10% of the equity interests in Keen.com and
Vcommerce, Inc. We engaged in the following transactions with these companies in 2002:
In April 2000, we entered into an advertising and promotions agreement with Keen.com under which
we recognized revenues of approximately $200,000 in 2002 in exchange for our promotion of Keen. Our
agreement with Keen.com expired during 2002. In February 2001, our wholly owned subsidiary, Half.com,
entered into a certain content licensing and inventory sales agreement with Vcommerce pursuant to which
Vcommerce agreed to list its inventory on Half.com's website and to allow Half to use Vcommerce's
catalog data to supplement Half's existing catalog data. Half paid Vcommerce approximately $25,000 in
2002 under this agreement. Half has recognized approximately $17,000 of expense in 2003 under its
agreement with Vcommerce.
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