eBay 2007 Annual Report Download - page 53

(1) Includes 47,481 shares of our common stock issuable pursuant to deferred stock units, or DSUs, under our 2003
Deferred Stock Unit Plan, and 8,833,633 shares of our common stock issuable pursuant to restricted stock units
under our 1998 Equity Incentive Plan and our 1999 Global Equity Incentive Plan. DSUs and restricted stock
units represent an unfunded, unsecured right to receive shares of eBay common stock (or, in the case of DSUs,
the equivalent value thereof in cash or property), and the value of DSUs and restricted stock units varies directly
with the price of eBay’s common stock.
(2) Because DSUs and restricted stock units do not have an exercise price, the 47,481 shares of our common stock
issuable pursuant to DSUs under our 2003 Deferred Stock Unit Plan and 8,833,633 shares of our common stock
issuable pursuant to restricted stock units under our 1998 Equity Incentive Plan and our 1999 Global Equity
Incentive Plan are not included in the calculation of weighted average exercise price.
(3) Includes 5,212,281 shares of our common stock remaining reserved for future issuance under our 1998
Employee Stock Purchase Plan, or the ESPP, as of December 31, 2007. Our ESPP contains an “evergreen”
provision that automatically increases, on each January 1, the number of securities reserved for issuance under
the ESPP by the number of shares purchased under the ESPP in the preceding calendar year, provided that the
aggregate number of shares reserved for issuance under the ESPP may not exceed 36,000,000 shares. As of
December 31, 2007, an aggregate amount of 11,772,941 shares had been purchased under the ESPP since its
inception. An aggregate amount of 1,987,719 shares was purchased under the ESPP in 2007, and the number of
securities available for future issuance under the ESPP was increased by that number on January 1, 2008,
bringing the total number of shares reserved for future issuance on January 1, 2008 to 7,200,000. None of our
other equity compensation plans has an “evergreen” provision.
(4) Does not include: (i) 6,350 shares of our common stock, with a weighted average exercise price of $1.26 per
share, to be issued upon exercise of outstanding options assumed by us under the Half.com, Inc. 1999 Equity
Compensation Plan; (ii) 11,489 shares of our common stock, with a weighted average exercise price of $0.77
per share, to be issued upon exercise of outstanding options assumed by us under the X.com Corporation 1999
Stock Plan; (iii) 294,544 shares of our common stock, with a weighted average exercise price of $10.29 per
share, to be issued upon exercise of outstanding options assumed by us under the PayPal, Inc. 2001 Equity
Incentive Plan; (iv) 85,875 shares of our common stock, with a weighted average exercise price of $10.24 per
share, to be issued upon exercise of outstanding options assumed by us under the Shopping.com Ltd. 2003
Omnibus Stock Option and Restricted Stock Incentive Plan; (v) 669,526 shares of our common stock, with a
weighted average exercise price of $36.03 per share, to be issued upon exercise of outstanding options assumed
by us under the Shopping.com Ltd. 2004 Equity Incentive Plan; (vi) 335,678 shares of our common stock, with
a weighted average exercise price of $4.15 per share, to be issued upon exercise of outstanding options assumed
by us under the Skype Technologies S.A. Stock Option Plan Rules; (vii) 364,267 shares of our common stock,
with a weighted average exercise price of $7.17 per share, to be issued upon exercise of outstanding options
assumed by us under the StubHub, Inc. 2000 Stock Plan; or (viii) 162,733 shares of our common stock, with a
weighted average exercise price of $0.93 per share, to be issued upon exercise of outstanding options assumed
by us under the StumbleUpon, Inc. 2006 Stock Plan. All of the options and related plans referenced above were
assumed by us in connection with acquisitions. We cannot make subsequent grants or awards of our equity
securities under any of these plans. Prior to each acquisition, the stockholders of the acquired company
approved the acquired company’s plan. Our stockholders, however, did not approve any of the plans in
connection with the acquisitions.
The only outstanding non-plan grant as of December 31, 2007 relates to an individual compensation
arrangement that was made prior to the initial public offering of our common stock in 1998. At the time of this
non-plan grant, members of our Board of Directors, or Board, and their affiliates beneficially owned in excess of
90% of our then outstanding equity and voting interests. This non-plan grant was initially disclosed in our initial
public offering prospectus filed with the SEC on September 25, 1998 under the headings “Management — Director
Compensation” and “— Compensation Arrangements.” Except as set forth below, the terms and conditions of this
non-plan grant are identical to the terms of options granted under our 1997 Stock Option Plan, a copy of which was
filed as an exhibit to our S-1 Registration Statement (No. 33-59097) filed in connection with our initial public
offering.
43