eBay 2004 Annual Report Download - page 84

July 2000, Mr. Jordan repaid in full the principal and accrued interest on the $900,000 term loan. In addition,
in April 2001, Mr. Jordan entered into a four-year term loan with us at an interest rate of 4.94% per annum,
with principal and accrued interest payable in equal installments on each anniversary of this loan. The
principal amount on this loan was $750,000, with the loan amount secured by Mr. Jordan's principal place of
residence. In April 2001, we entered into a second special retention bonus plan with Mr. Jordan under which
Mr. Jordan received bonus payments in April of 2002, 2003, and 2004 and remains eligible to receive a bonus
payment in April 2005 if he is then employed by us. Payment amounts under this bonus plan with Mr. Jordan
are $224,550 for 2002, $215,288 for 2003, $206,025 for 2004, and $196,763 for 2005, and the terms of the
bonus plan allowed those amounts to be used to pay principal and interest owed to us under the loans
described in this paragraph. In May 2001, May 2002, and May 2003, Mr. Jordan paid down $314,000,
$298,000 and $282,000, respectively, of principal and accrued interest on his May 2000 loan. In April 2002
and April 2003, Mr. Jordan paid down $224,550 and $215,288, respectively, of principal and accrued interest
on his April 2001 loan. In July 2003, Mr. Jordan prepaid in full the principal and accrued interest on both the
May 2000 and April 2001 loans in the amounts of $252,762 and $380,380, respectively.
In March 2001, in connection with his relocation to San Jose as a result of his joining eBay in November
2000, Mr. Cobb, our President, eBay North America, entered into a four-year, non-interest bearing term loan
with us in the amount of $840,000. The loan to Mr. Cobb was secured by his principal place of residence.
Principal payments of $70,000 were due on the Ñrst, second and third anniversary of his start date, and a
balloon payment of the remaining principal was due on the fourth anniversary of his start date. In November
2000, we entered into a special retention bonus plan with Mr. Cobb under which Mr. Cobb received a $70,000
bonus payment in November of 2001, 2002, 2003 and 2004. In April 2002, we entered into a second special
retention bonus plan with Mr. Cobb under which Mr. Cobb received $280,000 bonus payment in November
2004. The terms of the bonus plans allowed these bonus payments to be used to pay principal payments due
under Mr. Cobb's loan. In each of November 2001, 2002 and 2003, Mr. Cobb paid down $70,000 of principal
on his loan, and in November 2004 Mr. Cobb paid the remaining $630,000 in principal on his loan. Mr. Cobb's
maximum indebtedness to eBay during 2004 was $630,000.
In September 2002, we entered into a special retention bonus plan with Mr. Bannick. Under the terms of
this bonus plan, Mr. Bannick received a $250,000 bonus payment after the closing of our acquisition of PayPal
in October 2002 and upon his acceptance of the new position as our Senior Vice President and General
Manager, Global Online Payments. In addition, the terms of the bonus plan provided for three performance-
based bonus payments of up to $250,000 related primarily to the integration and performance of our PayPal
subsidiary, payable on each of the nine months, 18 months, and 24 months after the October 2002 closing of
the PayPal acquisition. Mr. Bannick received $250,000 payments in July 2003, April 2004 and October 2004.
Mr. Omidyar, our Founder and the Chairman of our Board of Directors, and Mr. Skoll, a beneÑcial
owner of more than 5% of our common stock, from time to time make their personal aircraft available to our
oÇcers for business purposes at no cost to us. The imputed cost of the aircraft use was not material to our
consolidated Ñnancial statements.
Another transaction is described under the caption ""Compensation Committee Interlocks and Insider
Participation''.
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