Document:

exv10w31

 

Exhibit 10.31

EBAY INC.

2003 DEFERRED STOCK UNIT PLAN, AS AMENDED

Initial Stockholder Approval on June 26, 2003

Amendment Adopted by the
Compensation Committee on March 16, 2005

Termination Date: March 17, 2013

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	

	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	GENERAL	 	 	 	 
	1.1

	 	Purpose
	 	 	1	 
	1.2

	 	Definitions of Certain Terms
	 	 	1	 
	1.3

	 	Administration
	 	 	2	 
	1.4

	 	Persons Eligible for Awards
	 	 	3	 
	1.5

	 	Types of Awards Under Plan
	 	 	4	 
	1.6

	 	Shares of Common Stock Available for Awards
	 	 	4	 
	 
	

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	AWARDS UNDER THE PLAN	 	 	 	 
	2.1

	 	Agreements Evidencing Awards
	 	 	4	 
	2.2

	 	No Rights as a Stockholder
	 	 	5	 
	2.3

	 	Grant of Deferred Stock Units
	 	 	5	 
	2.4

	 	Grant of Dividend Equivalent Rights
	 	 	5	 
	 
	

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	MISCELLANEOUS	 	 	 	 
	3.1

	 	Amendment of the Plan
	 	 	6	 
	3.2

	 	Tax Withholding
	 	 	6	 
	3.3

	 	Required Consents and Legends
	 	 	6	 
	3.4

	 	Nonassignability; No Hedging
	 	 	7	 
	3.5

	 	Successor Entity
	 	 	7	 
	3.6

	 	Right of Discharge Reserved
	 	 	8	 
	3.7

	 	Nature of Payments
	 	 	8	 
	3.8

	 	Other Payments or Awards
	 	 	8	 
	3.9

	 	Plan Headings
	 	 	8	 
	3.10

	 	Termination of Plan
	 	 	8	 
	3.11

	 	Governing Law
	 	 	9	 
	3.12

	 	Severability; Entire Agreement
	 	 	9	 
	3.13

	 	No Third Party Beneficiaries
	 	 	9	 
	3.14

	 	Successors and Assigns of eBay
	 	 	9	 
	3.15

	 	Date of Adoption
	 	 	9	 

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EBAY INC.

2003 DEFERRED STOCK
UNIT PLAN, AS AMENDED

Initial Stockholder Approval on June 26, 2003

Amendment Adopted by the
Compensation Committee on March 16, 2005

Termination Date: March 17, 2013

ARTICLE I

GENERAL

1.1 Purpose

     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.

     “Company” means eBay and its subsidiaries.

     “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.

     “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 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) 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, the Committee shall have the authority,
in its absolute discretion, 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

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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 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 may 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 must be made 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.

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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 Adjustments. The Committee shall have the authority (but shall not be required)
to adjust the number of shares of Common Stock authorized pursuant to Section 1.6.1 and to adjust
equitably (including, without limitation, by payment of cash) the terms of any outstanding Awards
(including, without limitation, the number of shares of Common Stock covered by each outstanding
Award, the type of property to which the Award is subject and the exercise or strike price of any
Award), in such manner as it deems appropriate to preserve the benefits or potential benefits
intended to be made available to grantees of Awards, for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend,
spinoff, splitup, combination or reclassification of the Common Stock, or any other event the
Committee determines in its sole discretion affects the capitalization of eBay, including any
extraordinary dividend or distribution. After any adjustment made pursuant to this Section 1.6.2,
the number of shares of Common Stock subject to each outstanding Award shall be rounded down to the
nearest whole number.

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 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.

	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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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

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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.

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

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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 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.

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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.

 - 9 -exv10w32

 

Exhibit 10.32

eBAY INC.

2003 DEFERRED STOCK UNIT PLAN

ELECTING DIRECTOR AWARD AGREEMENT

     This award agreement (this “Award Agreement”) sets forth the terms and conditions of an award
(this “Award”) of deferred stock units (“DSUs”) granted to you under the eBay Inc. 2003 Deferred
Stock Unit Plan (the “Plan”) and pursuant to your election to defer your Annual Retainer.

     1. The Plan. This Award is made pursuant to the Plan, the terms of which are
incorporated in this Award Agreement. Capitalized terms used in this Award Agreement that are not
defined in this Award Agreement have the meanings as used or defined in the Plan.

     2. Award. The number of DSUs subject to this Award is set forth at the end of this
Award Agreement. Each DSU constitutes an unfunded and unsecured promise of eBay to deliver (or
cause to be delivered) to you, subject to the terms of this Award Agreement, one share of Common
Stock (the “Share” or the “Shares” as the context requires) (or, in the sole discretion of the
Committee, cash, securities or other property equal to the Fair Market Value thereof) as soon as
practicable but in no case more than 10 days following the Delivery Date as provided herein. You
shall also be entitled to receive an amount in cash equal to the sum of any declared dividends on
the Shares which the record date therefor occurred after the date of grant and prior to delivery
(the “dividend equivalent rights”). Until such delivery, you have only the rights of a general
unsecured creditor, and no rights as a stockholder, of eBay. THIS AWARD IS SUBJECT TO ALL TERMS,
CONDITIONS AND PROVISIONS OF THE PLAN AND THIS AWARD AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE
ARBITRATION AND CHOICE OF FORUM PROVISIONS SET FORTH IN PARAGRAPH 15.

     3. Vesting. You shall be vested in 100% of this grant of DSUs on the Date of Grant
specified at the end of this Award Agreement.

     4. DSU Account.

     A bookkeeping account will be established for you which shall be credited with all DSUs and
any dividend equivalent rights that have been granted to you.

     5. Delivery of Shares/DSU Payments.

     (a) Except as provided in this Paragraph 5 and in Paragraphs 6, 8 and 9, the Shares underlying
the DSUs and any dividend equivalent rights corresponding to the DSUs shall be delivered as soon as
practicable but in no case more than 10 days following the Delivery Date specified at the end of
this Award Agreement. The Company may, at its option, deliver cash, securities or other property
in lieu of all or any portion of the Shares otherwise deliverable. Such payment shall be equal in
value to the product of the number of Shares to be delivered on the Delivery Date and the Fair
Market Value of one Share of Common Stock on the Delivery Date.

 

 

You shall be deemed the beneficial owner of the Shares at the close of business on the
Delivery Date and shall be entitled to any dividend or distribution that has not already been made
with respect to such Shares if the record date for such dividend or distribution is after the close
of business on the Delivery Date. Notwithstanding the foregoing, if the Delivery Date occurs at a
time when you are considered by the Company to be one of its “covered employees” within the meaning
of Section 162(m) of the Code and/or if you are considered to be one of the Company’s “specified
employees” within the meaning of Section 409A(a)(2)(B) of the Code and applicable Treasury
regulations and guidance issued from time to time thereunder (including, without limitation, any
regulations and guidance setting forth the time period with respect to which the determination
whether you are a “specified employee” must be made), then, unless the Committee determines
otherwise, delivery of the Shares (or cash) automatically shall be deferred until six months after
you have ceased to be an employee of the Company. Such deferral shall not affect the number of
shares or the amount of cash to be delivered.

     (b) Notwithstanding the foregoing, all DSUs and any dividend equivalent rights shall become
payable immediately upon a Change in Control. “Change in Control” means (a) a dissolution or
liquidation of eBay, (b) a merger or consolidation in which eBay is not the surviving corporation
(other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of eBay in
a different jurisdiction, or other transaction in which there is no substantial change in the
stockholders of eBay or their relative stock holdings and the Awards granted under this Plan are
assumed, converted or replaced by the successor corporation, which assumption, conversion or
replacement will be binding on all grantees), (c) merger in which eBay is the surviving
corporation but after which the stockholders of eBay (other than any stockholder which merges (or
which owns or controls another corporation which merges) with eBay in such merger) cease to own
their shares or other equity interests in eBay, (d) the sale of substantially all of the assets of
eBay, or (e) the acquisition, sale or transfer of more than 50% of the outstanding shares of eBay
by tender offer or similar transaction; provided, however, that in no event will a
“Change of Control” be deemed to have occurred for purposes of this Award Agreement if such event
would not constitute a change in the ownership or effective control of eBay, or in the ownership of
a substantial portion of the assets of eBay for purposes of Section 409A of the Code and applicable
Treasury regulations and guidance issued from time to time thereunder.

     (c) “Delivery Date” means the date of your termination of service with the Board.

     6. Disability and Death.

     (a) Notwithstanding any other provision of this Award Agreement, if your service with the
Company is terminated by reason of disability (as defined in Section 409A(a)(2)(C) of the Code and
as determined in the sole discretion of the Committee), Shares (or, in the sole discretion of the
Committee, cash, securities or other property in lieu of all or any part thereof) corresponding to
your outstanding DSUs and any dividend equivalent rights shall be delivered to you as soon as
practicable.

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     (b) In the event of your death, Shares (or, in the sole discretion of the Committee, cash,
securities or other property in lieu of all or any part thereof) corresponding to your outstanding
DSUs and any dividend equivalent rights shall be delivered to the representative of your estate as
soon as practicable after the date of death and after such documentation as may be requested by the
Committee is provided to the Committee.

     7. Non-transferability. Except as otherwise may be provided by the Committee, the
limitations set forth in Section 3.4 of the Plan shall apply. Any assignment in violation of the
provisions of this Paragraph 7 shall be null and void.

     8. Withholding, Consents and Legends.

     (a) The delivery of Shares is conditioned on your satisfaction of any applicable withholding
taxes (in accordance with Section 3.2 of the Plan).

     (b) Your rights in respect of your DSUs are conditioned on the receipt to the full
satisfaction of the Committee of any required consents (as defined in Section 3.3 of the Plan) that
the Committee may determine to be necessary or advisable (including, without limitation, your
consenting to deductions from your wages, or another arrangement satisfactory to the Committee, to
reimburse the Company for advances made on your behalf to satisfy any withholding and other tax
obligations in connection with this Award).

     (c) eBay may affix to certificates representing Shares issued pursuant to this Award Agreement
any legend that the Committee determines to be necessary or advisable (including to reflect any
restrictions to which you may be subject under a separate agreement with eBay). eBay may advise
the transfer agent to place a stop transfer order against any legended Shares.

     9. Right of Offset. The Company shall have the right to offset against the obligation
to deliver Shares under this Award Agreement any outstanding amounts (including, without
limitation, travel and entertainment or advance account balances, loans, or amounts repayable to
the Company pursuant to other director programs) you then owe to the Company and any amounts the
Committee otherwise deems appropriate.

     10. No Rights to Continued Service. Nothing in this Award Agreement or the Plan shall
be construed as giving you any right to continued service with the Company or affect any right that
the Company may have to terminate your service with the Company or alter the terms and conditions
of your employment.

     11. Successors and Assigns of eBay. The terms and conditions of this Award Agreement
shall be binding upon, and shall inure to the benefit of, eBay and its successor entities (as
defined in Section 3.5 of the Plan).

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     12. Committee Discretion. The Committee shall have full discretion with respect to
any actions to be taken or determinations to be made in connection with this Award Agreement, and
its determinations shall be final, binding and conclusive.

     13. Amendment. The Committee reserves the right at any time to amend the terms and
conditions set forth in this Award Agreement, and the Board may amend the Plan in any respect;
provided, that, notwithstanding the foregoing and Sections 1.3.1(i), 1.3.1(ii) and 3.1 of the Plan,
no such amendment shall materially adversely affect your rights and obligations under this Award
Agreement without your consent, except that the Committee reserves the right to accelerate the
delivery of the Shares and in its discretion provide that such Shares may not be transferable until
the Delivery Date on which such Shares otherwise would have been delivered (and that in respect of
such Shares you will remain obligated to return the Shares and any dividend equivalents to the
Company in the circumstances under which the Shares would not have been delivered pursuant to
Paragraph 4 or Paragraph 5). Any amendment of this Award Agreement shall be in writing signed by
an authorized member of the Committee or a person or persons designated by the Committee.

     14. Adjustment. The provisions of Section 1.6.2 of the Plan shall apply in the event
the Committee desires to make such equitable adjustments, designed to protect dilution or
enlargement of rights, as it may deem appropriate, in the number and kind of Shares covered by the
DSUs subject to this Award Agreement.

     15. Arbitration; Choice of Forum.

     (a) Any dispute, controversy or claim between the Company and you, arising out of or relating
to or concerning the Plan or this Award Agreement, shall be finally settled by arbitration in San
Jose, California before, and in accordance with the rules then in effect of, the American
Arbitration Association (the “AAA”) in accordance with the commercial arbitration rules of the AAA.
Prior to arbitration, all claims maintained by you must first be submitted to the Committee in
accordance with claims procedures determined by the Committee. This Paragraph is subject to the
provisions of Paragraphs 15(b) and (c) below.

     (b) THE COMPANY AND YOU HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE
OR FEDERAL COURT LOCATED IN THE CITY OF SAN JOSE, CALIFORNIA OVER ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO OR CONCERNING THE PLAN OR THIS AWARD AGREEMENT THAT IS NOT OTHERWISE
ARBITRATED OR RESOLVED ACCORDING TO PARAGRAPH 15(a) OF THIS AWARD AGREEMENT. This includes any
suit, action or proceeding to compel arbitration or to enforce an arbitration award. The Company
and you acknowledge that the forum designated by this Paragraph 15(b) has a reasonable relation to
the Plan, this Award Agreement, and to your relationship with the Company. Notwithstanding the
foregoing, nothing herein shall preclude the Company from bringing any action or proceeding in any
other court for the purpose of enforcing the provisions of this Paragraph 15.

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     (c) The agreement by you and the Company as to forum is independent of the law that may be
applied in the action, and you and the Company agree to such forum even if the forum may under
applicable law choose to apply non-forum law. You and the Company hereby waive, to the fullest
extent permitted by applicable law, any objection which you or the Company now or hereafter may
have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding in
any court referred to in Paragraph 15(b). You and the Company undertake not to commence any
action, suit or proceeding arising out of or relating to or concerning this Award Agreement in any
forum other than a forum described in this Paragraph 15. You and (subject to the last sentence of
Paragraph 15(a)) the Company agree that, to the fullest extent permitted by applicable law, a final
and non-appealable judgment in any such suit, action or proceeding in any such court shall be
conclusive and binding upon you and the Company.

     (d) You irrevocably appoint the Secretary of eBay as your agent for service of process in
connection with any action, suit or proceeding arising out of or relating to or concerning this
Award Agreement which is not arbitrated pursuant to the provisions of Paragraph 15(a), who shall
promptly advise you of any such service of process.

     (e) You hereby agree to keep confidential the existence of, and any information concerning, a
dispute described in this Paragraph 15, except that you may disclose information concerning such
dispute to the arbitrator or court that is considering such dispute or to your legal counsel
(provided that such counsel agrees not to disclose any such information other than as necessary to
the prosecution or defense of the dispute).

     16. Governing Law. THIS AWARD SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

     17. Headings. The headings in this Award Agreement are for the purpose of convenience
only and are not intended to define or limit the construction of the provisions hereof.

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     IN WITNESS WHEREOF, eBAY INC. has caused this Award Agreement to be duly executed and
delivered as of the Date of Grant.

	 	 	 	 	 	 	 
	 	 	eBay Inc.
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	Recipient:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Number of DSUs:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date of Grant:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Delivery Date:

	 	Termination of service as a Director of the Company for any reason.
Also, I understand that DSUs may be delivered to me 
prior to such
time pursuant to the terms of the Plan and this Agreement.	 	 	 	 	 	 

     I have read the Plan and this Award Agreement and I agree to these terms.

	 	 	 
	

	 	 
	Participant Signature

	 	 

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