Annual Report — Form 10-K Filing Table of Contents
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1: 10-K Annual Report HTML 1.14M
2: EX-10.03 Material Contract HTML 67K
3: EX-10.04 Material Contract HTML 79K
4: EX-10.07 Material Contract HTML 32K
5: EX-10.09 Material Contract HTML 38K
6: EX-10.10 Material Contract HTML 70K
7: EX-10.12 Material Contract HTML 89K
8: EX-10.13 Material Contract HTML 62K
9: EX-10.15 Material Contract HTML 56K
10: EX-21.01 Subsidiaries of the Registrant HTML 75K
11: EX-23.01 Consent of Experts or Counsel HTML 11K
12: EX-31.01 Certification per Sarbanes-Oxley Act (Section 302) HTML 13K
13: EX-31.02 Certification per Sarbanes-Oxley Act (Section 302) HTML 13K
14: EX-32.01 Certification per Sarbanes-Oxley Act (Section 906) HTML 9K
15: EX-32.02 Certification per Sarbanes-Oxley Act (Section 906) HTML 9K
The purpose of the eBay Inc. 2003 Deferred Stock Unit Plan is to
retain and motivate members of the eBay board of directors and
such other officers or employees as are selected to participate,
to compensate them for their contributions to the long-term
growth and profits of the Company, and to encourage them to
acquire a proprietary interest in the success of the Company
including by providing a convenient means for them to acquire
shares of Common Stock from the Company at fair market value.
1.2 Definitions of Certain Terms
“eBay” means eBay Inc. or a successor entity
contemplated by Section 3.5.
“Annual Retainer” shall have the meaning set
forth in Section 1.4.2.
“Award” means an award made pursuant to the
Plan.
“Award Agreement” means the written document by
which each Award is evidenced.
“Board” means the Board of Directors of eBay.
“Cash Payment Date” shall have the meaning set
forth in Section 1.4.2.
“Code” means the Internal Revenue Code of 1986,
as amended from time to time, and the applicable rulings and
regulations thereunder.
“Committee” means the committee established
pursuant to Section 1.3.1.
“Common Stock” means the common stock of eBay,
par value $0.001 per share.
“Electing Director” shall have the meaning set
forth in Section 1.4.2.
“Eligibility Date” shall have the meaning set
forth in Section 1.4.2.
“Equity Restructuring” means a non-reciprocal
transaction (i.e. a transaction in which the Company does not
receive consideration or other resources in respect of the
transaction approximately equal to and in exchange for the
consideration or resources the Company is relinquishing in such
transaction) between the Company and its stockholders, such as a
stock split, spin-off, rights offering, nonrecurring stock
dividend or recapitalization through a large, nonrecurring cash
dividend, that affects the shares of Common Stock (or other
securities of the Company) or the share price of Common Stock
(or other securities) and causes a change in the per share value
of the Common Stock underlying outstanding Awards.
“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time, and the applicable
rules and regulations thereunder.
“Fair Market Value” means, as of any date, the
value of a share of Common Stock determined as follows:
(a) if such Common Stock is then quoted on the Nasdaq
National Market, its closing price on the Nasdaq National Market
on the date of determination as reported in The Wall Street
Journal; (b) if such Common Stock is publicly traded
and is then listed on a national securities exchange other than
the Nasdaq National Market, its closing price on the date of
determination on the principal national securities exchange on
which the Common Stock is listed or admitted to trading as
reported in The Wall Street Journal; (c) if such
Common
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Stock is publicly traded but is not quoted on the Nasdaq
National Market nor listed or admitted to trading on a national
securities exchange, the average of the closing bid and asked
prices on the date of determination as reported in The Wall
Street Journal; and (d) if none of the foregoing is
applicable, then the value determined by the Committee in good
faith.
“New Director” shall have the meaning set forth
in Section 1.4.1.
“Plan” means the eBay Inc. 2003 Deferred Stock
Unit Plan, as described herein and as hereafter amended from
time to time.
1.3 Administration
1.3.1 Except as otherwise provided herein, the Plan
shall be administered by the Compensation Committee of the Board
(the “Committee”). The Committee is
authorized, subject to the provisions of the Plan, to establish
such rules and regulations as it deems necessary for the proper
administration of the Plan (including with respect to setting
terms and conditions of further voluntary deferral of Awards
beyond the delivery date, which further deferrals shall comply
with the provisions of Section 409A of the Code) and to
make such determinations and interpretations and to take such
action in connection with the Plan and any Award granted
thereunder as it deems necessary or advisable. All
determinations and interpretations made by the Committee shall
be final, binding and conclusive on all grantees and on their
legal representatives and beneficiaries. The Committee shall
have the authority, in its absolute discretion, to determine the
persons who shall receive Awards, the time when Awards shall be
granted, the terms of such Awards and the number of shares of
Common Stock, if any, which shall be subject to such Awards.
Unless otherwise provided in an Award Agreement or as would
otherwise subject the holder of an Award to an excise tax under
Section 409A of the Code, the Committee shall have the
authority to (i) amend any outstanding Award Agreement in
any respect, whether or not the rights of the grantee of such
Award are adversely affected, including, without limitation, to
accelerate the time or times at which the Award becomes vested,
unrestricted or may be exercised, waive or amend any goals,
restrictions or conditions set forth in such Award Agreement, or
impose new goals, restrictions and conditions, or reflect a
change in the grantee’s circumstances and
(ii) determine whether, to what extent and under what
circumstances and method or methods (A) Awards may be
(1) settled in cash, shares of Common Stock, other
securities, other Awards or other property or (2) canceled,
forfeited or suspended, (B) shares of Common Stock, other
securities, other Awards or other property, and other amounts
payable with respect to an Award may be deferred at the election
of the grantee thereof with the consent of the Committee or at
the election of the Committee and (C) Awards may be settled
by the Company or any of its designees. Notwithstanding anything
to the contrary contained herein, the Board may, in its sole
discretion, at any time and from time to time, grant Awards
(including grants to members of the Board who are not employees
of the Company) or administer the Plan, in which case the Board
shall have all of the authority and responsibility granted to
the Committee herein.
1.3.2 Actions of the Committee may be taken by the
vote of a majority of its members. The Committee may allocate
among its members and delegate to any person who is not a member
of the Committee any of its administrative responsibilities.
1.4 Persons Eligible for Awards
1.4.1 Awards under the Plan shall be made to each new
member of the Board upon the later of (i) their election to
service as a member of the Board after December 31, 2002;
and (ii) the adoption of this plan by the stockholders (a
“New Director”).
1.4.2 Awards under the Plan shall be made to Electing
Directors (as defined below) on the date on which they otherwise
would be entitled to receive a cash payment (the
“Cash Payment Date”) in respect of their
annual retainer for their services on the Board (including, if
applicable, as “Lead Director”) and, to the extent
applicable, on any committees thereof (the “Annual
Retainer”), which annual retainer is payable
quarterly in arrears. An “Electing
Director” is any member of the Board who, with
respect to a particular taxable year has made an election to
have all of his or her Annual Retainer for services performed in
such taxable year paid in the form of Awards under the Plan,
rather than in the form of quarterly cash payments as described
above. Such election must be in a form approved by the Committee
and must be delivered to the Committee (or a person
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designated by the Committee to receive such election) prior to
the end of the preceding taxable year or as otherwise prescribed
by law; provided, however, that during the first
taxable year during which any member of the Board is eligible to
elect to receive Awards under this Section 1.4.2, such
election shall be made within thirty days of the
“Eligibility Date” with respect to
services to be performed subsequent to the election but during
such taxable year. With respect to individuals who are members
of the Board on March 16, 2005, the Eligibility Date is
March 16, 2005; with respect to individuals who become
members of the Board after March 16, 2005, the Eligibility
Date is the date on which such individual becomes a member of
the Board. Notwithstanding the foregoing, for an election to be
effective with respect to a quarter during the first taxable
year in which a member of the Board is eligible to participate
hereunder, such election shall be made within 30 days of
the Eligibility Date and prior to the start of such quarter,
which means that in the case of individuals who are members of
the Board on March 16, 2005, such election must be made on
or prior to March 31, 2005 in order for such election to be
effective with respect to that portion of the Annual Retainer
earned during the second quarter of 2005.
1.4.3 Awards under the Plan may also be made to such
officers and employees (including prospective employees) of the
Company as the Committee may select.
1.5 Types of Awards Under Plan
Awards may be made under the Plan in the form of
(a) deferred stock units and (b) dividend equivalent
rights.
1.6 Shares of Common Stock Available for
Awards
1.6.1 Common Stock Subject to the
Plan. Subject to adjustment as provided in
Section 1.6.2 hereof, the maximum number of shares
underlying deferred stock units that may be reserved for
issuance are
4,000,0001
shares of Common Stock. Such shares of Common Stock may, in the
discretion of the Committee, be either authorized but unissued
shares or shares previously issued and reacquired by eBay. If
any Award shall expire, terminate or otherwise lapse, in whole
or in part, any shares of Common Stock subject to such Award (or
portion thereof) shall again be available for issuance under the
Plan.
1.6.2 Capitalization
Adjustments. In the event that any dividend
or other distribution, reorganization, merger, consolidation,
combination, repurchase, or exchange of Common Stock or other
securities of the Company, or other change in the corporate
structure of the Company affecting the Common Stock (other than
an Equity Restructuring) occurs such that an adjustment is
determined by the Committee (in its sole discretion) to be
appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available
under the Plan, then the Committee shall, in such manner as it
may deem equitable, adjust the number and class of Common Stock
which may be delivered under the Plan, the number of shares of
Common Stock covered by each outstanding Award, and the
numerical limits of Section 1.6.1.
1.6.3 Equity Restructuring
Adjustments. In connection with the
occurrence of any Equity Restructuring, and notwithstanding
anything to the contrary in Section 1.6.2 the number and
type of securities subject to each outstanding Award and the
grant price thereof, if applicable, will be equitably adjusted
by the Committee. The adjustments provided under this
Section 1.6.3 shall be nondiscretionary and shall be final
and binding on the affected Participant and the Company.
ARTICLE II
AWARDS UNDER
THE PLAN
2.1 Agreements Evidencing Awards
Each Award granted under the Plan shall be evidenced by a
written document which shall contain such provisions and
conditions as the Committee deems appropriate. The Committee may
grant Awards in tandem with or in substitution for any other
Award or Awards granted under this Plan or any award granted
under any
1 Denotes
that such share number reflects the stock splits of eBay’s
common stock occurring in
8/03 and in
02/05.
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other plan of the Company. By accepting an Award pursuant to the
Plan, a grantee agrees that the Award shall be subject to all of
the terms and provisions of the Plan and the applicable Award
Agreement.
2.2 No Rights as a Stockholder
No grantee of an Award shall have any of the rights of a
stockholder of eBay with respect to shares of Common Stock
subject to such Award until the delivery of such shares. Except
as otherwise provided in Section 1.6.2, no adjustments
shall be made for dividends, distributions or other rights
(whether ordinary or extraordinary, and whether in cash, Common
Stock, other securities or other property) for which the record
date is prior to the date such shares are delivered.
2.3 Grant of Deferred Stock Units
2.3.1 Each New Director shall receive a one-time
grant of deferred stock units equal to the result of dividing
(i) $150,000 by (ii) the Fair Market Value on the date
of grant, rounded down to the nearest whole share. A grantee of
a deferred stock unit will have only the rights of a general
unsecured creditor of eBay until delivery of shares of Common
Stock, cash or other securities or property is made as specified
in the applicable Award Agreement. As soon as practicable
following the delivery date specified in the Award Agreement,
the grantee of each deferred stock unit not previously forfeited
or terminated shall receive one share of Common Stock, or cash,
securities or other property equal in value to the Fair Market
Value of a share of Common Stock on the delivery date specified
in the Award Agreement or a combination thereof, as specified by
the Committee.
2.3.2 On each Cash Payment Date with respect to a
taxable year in which a member of the Board is an Electing
Director pursuant to Section 1.4.2, such Electing Director
shall receive a grant of deferred stock units equal to the
result of dividing (i) the amount of cash the Electing
Director would have received on such Cash Payment Date if he or
she had not elected to become an Electing Director by
(ii) the Fair Market Value on the date of grant, rounded
down to the nearest whole share. A grantee of a deferred stock
unit will have only the rights of a general unsecured creditor
of eBay until delivery of shares of Common Stock, cash or other
securities or property is made as specified in the applicable
Award Agreement. As soon as practicable following the delivery
date specified in the Award Agreement, the grantee of each
deferred stock unit not previously forfeited or terminated shall
receive one share of Common Stock, or cash, securities or other
property equal in value to the Fair Market Value of a share of
Common Stock on the delivery date specified in the Award
Agreement or a combination thereof, as specified by the
Committee.
2.3.3 The Committee may grant deferred stock units in
such amounts and subject to such terms and conditions as the
Committee shall determine to such other persons eligible to be
selected for an Award pursuant to Section 1.4.3.
2.4 Grant of Dividend Equivalent Rights
The Committee may include in the Award Agreement with respect to
any Award a dividend equivalent right entitling the grantee to
receive amounts equal to all or any portion of the dividends
that would be paid on the shares of Common Stock covered by such
Award if such shares had been delivered pursuant to such Award.
The grantee of a dividend equivalent right will have only the
rights of a general unsecured creditor of eBay until payment of
such amounts is made as specified in the applicable Award
Agreement. In the event such a provision is included in an Award
Agreement, the Committee shall determine whether such payments
shall be made in cash, in shares of Common Stock or in another
form, whether they shall be conditioned upon the exercise of the
Award to which they relate, the time or times at which they
shall be made, and such other terms and conditions as the
Committee shall deem appropriate.
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ARTICLE III
MISCELLANEOUS
3.1 Amendment of the Plan
The Committee may from time to time suspend, discontinue, revise
or amend the Plan in any respect whatsoever; provided, however,
that such action shall not materially adversely affect the
rights and obligations of a grantee under an Award previously
granted.
3.2 Tax Withholding
As a condition to the delivery of any shares of Common Stock
pursuant to any Award or the lifting or lapse of restrictions on
any Award, or in connection with any other event that gives rise
to a federal or other governmental tax withholding obligation on
the part of the Company relating to an Award (including, without
limitation, FICA tax), (a) the Company may deduct or
withhold (or cause to be deducted or withheld) from any payment
or distribution to a grantee whether or not pursuant to the
Plan; (b) the Committee shall be entitled to require that
the grantee remit cash to the Company (through payroll deduction
or otherwise), in each case in an amount sufficient in the
opinion of the Company to satisfy such withholding obligation;
or (c) if the event giving rise to the withholding
obligation involves a transfer of shares of Common Stock, then
at the discretion of the Committee, the grantee may satisfy the
withholding obligation by electing to have the Company withhold
shares of Common Stock (not in excess of the statutory minimum
rate) or by tendering previously owned shares of Common Stock,
in each case having a Fair Market Value equal to the amount of
tax to be withheld (or by any other mechanism as may be required
or appropriate to conform with local tax and other rules). For
this purpose, Fair Market Value shall be determined as of the
date on which the amount of tax to be withheld is determined
(and the Company may cause any fractional share amount to be
settled in cash).
3.3 Required Consents and Legends
3.3.1 If the Committee shall at any time determine
that any consent (as hereinafter defined) is necessary or
desirable as a condition of, or in connection with, the granting
of any Award, the delivery of shares of Common Stock or the
delivery of any cash, securities or other property under the
Plan, or the taking of any other action thereunder (each such
action being hereinafter referred to as a “plan
action”), then such plan action shall not be taken, in
whole or in part, unless and until such consent shall have been
effected or obtained to the full satisfaction of the Committee.
The Committee may direct that any certificate evidencing shares
delivered pursuant to the Plan shall bear a legend setting forth
such restrictions on transferability as the Committee may
determine to be necessary or desirable, and may advise the
transfer agent to place a stop transfer order against any
legended shares.
3.3.2 By accepting an Award, each grantee expressly
provides consent to the items described in Section 3.3.3
below.
3.3.3 The term “consent” as used in this
Section 3.3 with respect to any plan action includes
(a) any and all listings, registrations or qualifications
in respect thereof upon any securities exchange or under any
federal, state, or local law, or law, rule or regulation of a
jurisdiction outside the United States, (b) any and all
written agreements and representations by the grantee with
respect to the disposition of the shares, or with respect to any
other matter, which the Committee may deem necessary or
desirable to comply with the terms of any such listing,
registration or qualification or to obtain an exemption from the
requirement that any such listing, qualification or registration
be made, (c) any and all other consents, clearances and
approvals in respect of a plan action by any governmental or
other regulatory body or any stock exchange or self-regulatory
agency and (d) any and all consents required by the
Committee. Nothing herein shall require eBay to list, register
or qualify shares of Common Stock on any securities exchange.
3.4 Nonassignability; No Hedging
Except to the extent otherwise expressly provided in the
applicable Award Agreement or determined by the Committee, no
Award (or any rights and obligations thereunder) granted to any
person under the Plan may be sold, exchanged, transferred,
assigned, pledged, hypothecated or otherwise disposed of or
hedged, in any
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manner (including through the use of any cash-settled
instrument), whether voluntarily or involuntarily and whether by
operation of law or otherwise, other than by will or by the laws
of descent and distribution. Any sale, exchange, transfer,
assignment, pledge, hypothecation, or other disposition in
violation of the provisions of this Section 3.4 shall be
null and void and any Award which is hedged in any manner shall
immediately be forfeited. All of the terms and conditions of
this Plan and the Award Agreements shall be binding upon any
permitted successors and assigns.
3.5 Successor Entity
Unless otherwise provided in the applicable Award Agreement and
except as otherwise determined by the Committee, in the event of
a merger, consolidation, mandatory share exchange or other
similar business combination of eBay with or into any other
entity (“successor entity”) or any transaction in
which another person or entity acquires all of the issued and
outstanding Common Stock of eBay, or all or substantially all of
the assets of eBay, outstanding Awards may be assumed or a
substantially equivalent award may be substituted by such
successor entity or a parent or subsidiary of such successor
entity.
3.6 Right of Discharge Reserved
Nothing in the Plan or in any Award Agreement shall confer upon
any grantee the right to continued service as a member of the
Board or any committee thereof or to future compensation as a
member of the Board or any committee thereof or affect any right
which the Company or Board may have to terminate such service.
3.7 Nature of Payments
3.7.1 Any and all grants of Awards and deliveries of
Common Stock, cash, securities or other property under the Plan
shall be in consideration of services performed or to be
performed for the Company by the grantee. Awards under the Plan
may, in the discretion of the Committee, be made in substitution
in whole or in part for cash or other compensation otherwise
payable to a participant in the Plan. Only whole shares of
Common Stock shall be delivered under the Plan. Awards shall, to
the extent reasonably practicable, be aggregated in order to
eliminate any fractional shares. Fractional shares shall be
rounded down to the nearest whole share and any such fractional
shares shall be forfeited.
3.7.2 All such grants and deliveries shall constitute
a special discretionary incentive payment to the grantee and
shall not be required to be taken into account in computing the
amount of salary or compensation of the grantee for the purpose
of determining any contributions to or any benefits under any
pension, retirement, profit-sharing, bonus, life insurance,
severance or other benefit plan of the Company or under any
agreement with the grantee, unless the Company specifically
provides otherwise.
3.8 Other Payments or Awards
Nothing contained in the Plan shall be deemed in any way to
limit or restrict the Company from making any award or payment
to any person under any other plan, arrangement or
understanding, whether now existing or hereafter in effect.
3.9 Plan Headings
The headings in this Plan are for the purpose of convenience
only and are not intended to define or limit the construction of
the provisions hereof.
3.10 Termination of Plan
The Committee reserves the right to terminate the Plan at any
time; provided, however, that in any case, the Plan shall
terminate on March 17, 2013, and provided further,
that all Awards made under the Plan prior to its termination
shall remain in effect until such Awards have been satisfied or
terminated in accordance with the terms and provisions of the
Plan and the applicable Award Agreements.
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3.11 Governing Law
THIS PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS.
3.12 Severability; Entire Agreement
If any of the provisions of this Plan or any Award Agreement is
finally held to be invalid, illegal or unenforceable (whether in
whole or in part), such provision shall be deemed modified to
the extent, but only to the extent, of such invalidity,
illegality or unenforceability and the remaining provisions
shall not be affected thereby; provided, that if any of
such provisions is finally held to be invalid, illegal, or
unenforceable because it exceeds the maximum scope determined to
be acceptable to permit such provision to be enforceable, such
provision shall be deemed to be modified to the minimum extent
necessary to modify such scope in order to make such provision
enforceable hereunder. The Plan and any Award Agreements contain
the entire agreement of the parties with respect to the subject
matter thereof and supersede all prior agreements, promises,
covenants, arrangements, communications, representations and
warranties between them, whether written or oral with respect to
the subject matter thereof.
3.13 No Third Party Beneficiaries
Except as expressly provided therein, neither the Plan nor any
Award Agreement shall confer on any person other than the
Company and the grantee of any Award any rights or remedies
thereunder.
3.14 Successors and Assigns of eBay
The terms of this Plan shall be binding upon and inure to the
benefit of eBay and any successor entity contemplated by
Section 3.5.
3.15 Date of Adoption
The Plan was adopted on March 18, 2003 by the Committee and
was amended by the Committee on March 16, 2005 to provide a
convenient means for members of the eBay board of directors to
acquire shares of Common Stock from the Company at fair market
value.
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Dates Referenced Herein and Documents Incorporated by Reference