Document:

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                                   EXHIBIT 4.2

                                    EBAY INC.

                     2001 EQUITY INCENTIVE PLAN, AS AMENDED

                  INITIAL STOCKHOLDER APPROVAL ON MAY 25, 2001
          AMENDMENT ADOPTED BY THE BOARD OF DIRECTORS ON MARCH 14, 2002
                  STOCKHOLDER APPROVAL OF AMENDMENT ON JUNE 5,
   2002 AMENDMENT RATIFIED BY THE COMPENSATION COMMITTEE AS OF MARCH 18, 2003
               STOCKHOLDER APPROVAL OF AMENDMENT ON JUNE 26, 2003
        AMENDMENT ADOPTED BY THE COMPENSATION COMMITTEE ON MARCH 18, 2004
               STOCKHOLDER APPROVAL OF AMENDMENT ON JUNE 24, 2004
                        TERMINATION DATE: MARCH 21, 2011

1.    PURPOSES.

      (A) ELIGIBLE OPTION RECIPIENTS. The persons eligible to receive Options
are the Employees, Directors and Consultants of the Company and its Affiliates.

      (B) AVAILABLE OPTIONS. The purpose of the Plan is to provide a means by
which eligible recipients of Options may be given an opportunity to benefit from
increases in value of the Common Stock through the granting of (i) Incentive
Stock Options and (ii) Nonstatutory Stock Options.

      (C) GENERAL PURPOSE. The Company, by means of the Plan, seeks to retain
the services of the group of persons eligible to receive Options, to secure and
retain the services of new members of this group and to provide incentives for
such persons to exert maximum efforts for the success of the Company and its
Affiliates.

2.    DEFINITIONS.

      (A) "AFFILIATE" means any parent corporation or subsidiary corporation of
the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code, and any other entity which
is controlled, directly or indirectly, by the Company.

      (B) "BOARD" means the Board of Directors of the Company.

      (C) "CODE" means the United States Internal Revenue Code of 1986, as
amended.

      (D) "COMMITTEE" means a committee of one or more members of the Board
appointed by the Board in accordance with subsection 3(c).

      (E) "COMMON STOCK" means the common stock of the Company.

      (F) "COMPANY" means eBay Inc., a Delaware corporation.

      (G) "CONSULTANT" means any natural person, including an advisor, (i)
engaged by the Company or an Affiliate to render consulting or advisory services
and who is compensated for such services, or (ii) who is a member of the Board
of Directors or comparable governing body of an Affiliate and who is compensated
for such services. However, the term "Consultant" shall not include Directors
who are not compensated by the Company for their services as Directors. In
addition, the payment of a director's fee by the Company for services as a
Director shall not cause a Director to be considered a "Consultant" for purposes
of the Plan.

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      (H) "CONTINUOUS SERVICE" means that the Optionholder's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Optionholder's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Optionholder renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Optionholder
renders such service, provided that there is no interruption or termination of
the Optionholder's service with the Company or an Affiliate. For example, a
change in status from an Employee of the Company to a Consultant of an Affiliate
or a Director will not constitute an interruption of Continuous Service. The
Board or the chief executive officer of the Company, in that party's sole
discretion, may determine whether Continuous Service shall be considered
interrupted in the case of any leave of absence approved by that party,
including sick leave, military leave or any other personal leave.

      (I) "COVERED EMPLOYEE" means the chief executive officer and the four (4)
other highest compensated officers of the Company for whom total compensation is
required to be reported to stockholders under the Exchange Act, as determined
for purposes of Section 162(m) of the Code.

      (J) "DIRECTOR" means a member of the Board of Directors of the Company.

      (K) "DISABILITY" means the inability of a natural person to continue to
perform services for the Company or any Affiliate of the type previously
performed prior to the occurrence of such Disability, whether as a result of
physical and/or mental illness or injury, as determined by a physician
acceptable to the Company, for a period that is expected to be of a duration of
no less than six (6) months.

      (L) "EMPLOYEE" means any person employed for tax purposes by the Company
or an Affiliate. Mere service as a Director or payment of a director's fee by
the Company or an Affiliate shall not be sufficient to constitute "employment"
by the Company or an Affiliate.

      (M) "EXCHANGE ACT" means the United States Securities Exchange Act of
1934, as amended.

      (N) "FAIR MARKET VALUE" means, as of any date, the value of the Common
Stock determined as follows:

            (I) If the Common Stock is listed on any established stock exchange
or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair
Market Value of a share of Common Stock shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or market (or the exchange or market with the greatest volume of
trading in the Common Stock) on the last market trading day prior to the day of
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable.

            (II) In the absence of such markets for the Common Stock, the Fair
Market Value shall be determined in good faith by the Board.

      (O) "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

      (P) "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or a subsidiary, does
not receive compensation (directly or indirectly) from the Company or its parent
or a subsidiary for services rendered as a consultant or in any capacity other
than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act ("Regulation S-K")), does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3.

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      (Q) "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify as
an Incentive Stock Option.

      (R) "OFFICER" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

      (S) "OPTION" means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to Section 6 of the Plan.

      (T) "OPTION AGREEMENT" means a written agreement between the Company and
an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

      (U) "OPTIONHOLDER" means a person to whom an Option is granted pursuant to
the Plan or, if applicable, such other person who holds an outstanding Option.

      (V) "OUTSIDE DIRECTOR" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

      (W) "PLAN" means this eBay Inc. 2001 Equity Incentive Plan, as amended.

      (X) "RULE 16B-3" means Rule 16b-3 promulgated under the Exchange Act or
any successor to Rule 16b-3, as in effect from time to time.

      (Y) "SECURITIES ACT" means the United States Securities Act of 1933, as
amended.

      (Z) "TEN PERCENT STOCKHOLDER" means a person who owns (or is deemed to own
pursuant to Section 424(d) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or of any of its Affiliates.

3.    ADMINISTRATION.

      (A) ADMINISTRATION BY BOARD. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
subsection 3(c).

      (B) POWERS OF BOARD. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

            (I) To determine from time to time which of the persons eligible
under the Plan shall be granted Options; when and how each Option shall be
granted; what type or combination of types of Option shall be granted; the
provisions of each Option granted (which need not be identical), including the
time or times when a person shall be permitted to receive Common Stock pursuant
to an Option; and the number of shares of Common Stock with respect to which an
Option shall be granted to each such person.

            (II) To construe and interpret the Plan and Options granted under
it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Option Agreement, in a
manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

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            (III) To amend the Plan or an Option as provided in Section 11.

            (IV) To terminate or suspend the Plan as provided in Section 12.

            (V) Generally, to exercise such powers and to perform such acts as
the Board deems necessary or expedient in its sole discretion to promote the
best interests of the Company and its stockholders that are not in conflict with
the provisions of the Plan.

      (C) DELEGATION TO COMMITTEE.

            (I) GENERAL. The Board may delegate administration of the Plan to a
Committee or Committees of one (1) or more members of the Board, and the term
"Committee" shall apply to any person or persons to whom such authority has been
delegated. If administration is delegated to a Committee, the Committee shall
have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee of one
(1) or more members of the Board any of the administrative powers the Committee
is authorized to exercise (and references in this Plan to the Board shall
thereafter be to the Committee or subcommittee), subject, however, to such
resolutions, not inconsistent with the provisions of the Plan, as may be adopted
from time to time by the Board. The Board may abolish the Committee at any time
and revest in the Board the administration of the Plan.

            (II) COMMITTEE COMPOSITION WHEN COMMON STOCK IS PUBLICLY TRADED. At
such time as the Common Stock is publicly traded, in the discretion of the
Board, a Committee may consist solely of two (2) or more Outside Directors, in
accordance with Section 162(m) of the Code, and/or solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such
authority, the Board or the Committee may (1) delegate to a committee of one or
more members of the Board who are not Outside Directors the authority to grant
Options to eligible persons who are either (a) not then Covered Employees and
are not expected to be Covered Employees at the time of recognition of income
resulting from such Option or (b) not persons with respect to whom the Company
wishes to comply with Section 162(m) of the Code and/or (2) delegate to a
committee of one or more members of the Board who are not Non-Employee Directors
the authority to grant Options to eligible persons who are not then subject to
Section 16 of the Exchange Act.

      (D) EFFECT OF BOARD'S DECISION. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
anyone and shall be final, binding and conclusive on all Optionholders and any
other person having an interest in such determination, interpretation or
construction.

4.    SHARES SUBJECT TO THE PLAN.

      (A) SHARE RESERVE. Subject to the provisions of Section 10 relating to
adjustments upon changes in Common Stock, the Common Stock that may be issued
pursuant to Options shall not exceed in the aggregate Ninety Six Million
(96,000,000)* shares of Common Stock.

      (B) REVERSION OF SHARES TO THE SHARE RESERVE. If any Option shall for any
reason expire or otherwise terminate, in whole or in part, without having been
exercised in full, the shares of Common Stock not acquired under such Option
shall revert to and again become available for issuance under the Plan. If an
Optionholder exercises an Option by attesting to the ownership of shares of
Common Stock in accordance with the provisions of Section 6(c) below, only the
net number of additional shares issued to the Optionholder shall be deducted
from the share reserve.

      (C) SOURCE OF SHARES. The shares of Common Stock subject to the Plan may
be unissued shares or reacquired shares, bought on the market or otherwise.

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*     Denotes that such share number reflects the stock split of eBay's common
      stock occurring in 8/03.

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5.    ELIGIBILITY.

      (A) ELIGIBILITY FOR SPECIFIC OPTIONS. Incentive Stock Options may be
granted only to Employees. Nonstatutory Stock Options may be granted to
Employees, Directors and Consultants.

      (B) NON-EMPLOYEE DIRECTORS. Notwithstanding the provisions of subsection
5(a) hereof, a Director who is not an Employee only may be granted
nondiscretionary Options that the Stockholders have approved as to the following
option provisions: Number of shares, date of automatic grant, term, exercise
price, consideration, vesting schedule, exercise schedule, and the
post-termination exercise periods.

      (C) TEN PERCENT STOCKHOLDERS. Notwithstanding the provisions of subsection
5(a) hereof, a Ten Percent Stockholder shall not be granted an Incentive Stock
Option unless the exercise price of such Option is at least one hundred ten
percent (110%) of the Fair Market Value of the Common Stock at the date of grant
and the Option is not exercisable after the expiration of five (5) years from
the date of grant.

      (D) SECTION 162(M) LIMITATION. Notwithstanding the provisions of
subsection 5(a) hereof and subject to the provisions of Section 10 relating to
adjustments upon changes in the shares of Common Stock, no Employee shall be
eligible to be granted Options covering more than Two Million (2,000,000)**
shares of Common Stock during any calendar year.

      (E) CONSULTANTS. Notwithstanding the provisions of subsection 5(a) hereof,
a Consultant shall not be eligible for the grant of an Option if, at the time of
grant, a Form S-8 Registration Statement under the Securities Act ("Form S-8")
is not available to register either the offer or the sale of the Company's
securities to such Consultant because of the nature of the services that the
Consultant is providing to the Company, or because the Consultant is not a
natural person, or as otherwise provided by the rules governing the use of Form
S-8.

6.    OPTION PROVISIONS.

      Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of
grant, and, if certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each
Option shall include (through incorporation of provisions hereof by reference in
the Option or otherwise) the substance of each of the following provisions:

      (A) TERM. Subject to the provisions of subsection 5(c) regarding Ten
Percent Stockholders, no Option shall be exercisable after the expiration of ten
(10) years from the date it was granted.

      (B) EXERCISE PRICE.

            (I) Subject to the provisions of subsection 5(c) regarding Ten
Percent Stockholders and subsection 6(b)(ii) below, the exercise price of each
Option shall be not less than one hundred percent (100%) of the Fair Market
Value of the Common Stock subject to the Option on the date the Option is
granted.

            (II) An Option may be granted with an exercise price lower than that
set forth in subsection 6(b)(i) above if such Option is granted pursuant to an
assumption or substitution for another option in a manner satisfying the
provisions of Section 424(a) of the Code.

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**    Denotes that such share number reflects the stock split of eBay's common
      stock occurring in 8/03.

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      (C) CONSIDERATION.

            (I) The purchase price of Common Stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised or (ii) at
the discretion of the Board at the time of the grant of the Option (or
subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the
Company, or attestation to the Company of ownership, of other Common Stock or
(2) in any other form of legal consideration that may be acceptable to the
Board.

            (II) Unless otherwise specifically provided, the purchase price of
Common Stock acquired pursuant to an Option that is paid by delivery to the
Company, or attestation to the Company of ownership, of other Common Stock shall
be paid only by shares of the Common Stock of the Company that have been held
for more than six (6) months (or such longer or shorter period of time required
to avoid a charge to earnings for financial accounting purposes).

      (D) TRANSFERABILITY OF AN INCENTIVE STOCK OPTION. An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing, the Optionholder may,
by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option.

      (E) TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory Stock
Option shall be transferable to the extent provided in the Option Agreement. If
the Nonstatutory Stock Option does not provide for transferability, then the
Nonstatutory Stock Option shall not be transferable except by will or by the
laws of descent and distribution and shall be exercisable during the lifetime of
the Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionholder, shall thereafter be entitled to exercise the Option.

      (F) VESTING GENERALLY. The total number of shares of Common Stock subject
to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(f) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may
be exercised.

      (G) TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death or
Disability), the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder's
Continuous Service (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the
Option Agreement. If, after termination, the Optionholder does not exercise his
or her Option within the time specified in the Option Agreement, the Option
shall terminate.

      (H) EXTENSION OF TERMINATION DATE. An Optionholder's Option Agreement may
also provide that if the exercise of the Option following the termination of the
Optionholder's Continuous Service (other than upon the Optionholder's death or
Disability) would be prohibited at any time solely because the issuance of
shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option or (ii) the expiration of a period of three
(3) months after the termination of the Optionholder's Continuous Service during
which the exercise of the Option would not be in violation of such registration
requirements.

      (I) DISABILITY OF OPTIONHOLDER. In the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination), but only
within such period of time

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ending on the earlier of (i) the date twelve (12) months following such
termination (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the
Option Agreement. If, after termination, the Optionholder does not exercise his
or her Option within the time specified herein, the Option shall terminate.

      (J) DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's Continuous
Service terminates as a result of the Optionholder's death or (ii) the
Optionholder dies within the period (if any) specified in the Option Agreement
after the termination of the Optionholder's Continuous Service for a reason
other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
option upon the Optionholder's death, but only within the period ending on the
earlier of (1) the date eighteen (18) months following the date of death (or
such longer or shorter period specified in the Option Agreement) or (2) the
expiration of the term of such Option as set forth in the Option Agreement. If,
after death, the Option is not exercised within the time specified herein, the
Option shall terminate.

7.    COVENANTS OF THE COMPANY.

      (A) AVAILABILITY OF SHARES. During the terms of the Options, the Company
shall keep available at all times the number of shares of Common Stock required
to satisfy such Options.

      (B) SECURITIES LAW COMPLIANCE. The Company shall seek to obtain from each
regulatory commission or agency having jurisdiction over the Plan such authority
as may be required to grant Options and to issue and sell shares of Common Stock
upon exercise of the Options; provided, however, that this undertaking shall not
require the Company to register under the Securities Act the Plan, any Option or
any Common Stock issued or issuable pursuant to any such Option. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems necessary
for the lawful issuance and sale of Common Stock under the Plan, the Company
shall be relieved from any liability for failure to issue and sell Common Stock
upon exercise of such Options unless and until such authority is obtained.

8.    USE OF PROCEEDS FROM STOCK.

      Proceeds from the sale of Common Stock pursuant to Options shall
constitute general funds of the Company.

9.    MISCELLANEOUS.

      (A) STOCKHOLDER RIGHTS. No Optionholder shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Common Stock subject to such Option unless and until such Optionholder has
satisfied all requirements for exercise of the Option pursuant to its terms.

      (B) NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or any
instrument executed or Option granted pursuant thereto shall confer upon any
Optionholder any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Option was granted or shall affect the right
of the Company or an Affiliate to terminate (i) the employment of an Employee
with or without notice and with or without cause, for any reason or no reason,
(ii) the service of a Consultant pursuant to the terms of such Consultant's
agreement with the Company or an Affiliate or (iii) the service of a Director
pursuant to the Bylaws of the Company or an Affiliate, and any applicable
provisions of the corporate law of the jurisdiction in which the Company or the
Affiliate is incorporated, as the case may be.

      (C) INCENTIVE STOCK OPTION $100,000 LIMITATION. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time
by any Optionholder during any calendar year (under all plans of the Company and
its Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof which exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options.

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      (D) INVESTMENT ASSURANCES. The Company may require an Optionholder, as a
condition of exercising an Option or acquiring Common Stock under any Option,
(i) to give written assurances satisfactory to the Company as to the
Optionholder's knowledge and experience in financial and business matters and/or
to employ a purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters and that he
or she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Option; (ii) to give
written assurances satisfactory to the Company stating that the Optionholder is
acquiring Common Stock subject to the Option for the Optionholder's own account
and not with any present intention of selling or otherwise distributing the
Common Stock; and/or (iii) to give such other written assurances as the Company
shall determine are necessary, desirable or appropriate to comply with
applicable securities regulation and other governing law. The Company may, upon
advice of counsel to the Company, place legends on stock certificates issued
under the Plan as such counsel deems necessary or appropriate in order to comply
with applicable securities laws, including, but not limited to, legends
restricting the transfer of the Common Stock.

      (E) WITHHOLDING OBLIGATIONS. To the extent provided by the terms of an
Option Agreement, the Optionholder may satisfy any tax withholding obligation
arising under the laws or regulations of any country, state or local
jurisdiction relating to the exercise or acquisition of Common Stock under an
Option by any of the following means (in addition to the Company's right to
withhold from any compensation paid to the Optionholder by the Company) or by a
combination of such means: (i) tendering a cash payment; (ii) authorizing the
Company to withhold shares of Common Stock from the shares of Common Stock
otherwise issuable to the Optionholder as a result of the exercise or
acquisition of Common Stock under the Option; provided, however, that no shares
of Common Stock are withheld with a value exceeding the minimum amount of tax
required to be withheld by law (or such lesser amount as may be required to
avoid variable award accounting); or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

10.   ADJUSTMENTS UPON CHANGES IN STOCK.

      (A) CAPITALIZATION ADJUSTMENTS. If any change is made in the Common Stock
subject to the Plan, or subject to any Option, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject to the Plan
pursuant to subsection 4(a) and the maximum number of securities subject to
award to any person pursuant to subsection 5(d), and the outstanding Options
will be appropriately adjusted in the class(es) and number of securities and
price per share of Common Stock subject to such outstanding Options. The Board
shall make such adjustments, and its determination shall be final, binding and
conclusive. (The conversion of any convertible securities of the Company shall
not be treated as a transaction "without receipt of consideration" by the
Company.)

      (B) DISSOLUTION OR LIQUIDATION. In the event of a dissolution or
liquidation of the Company, then all outstanding Options shall terminate
immediately prior to such event.

      (C) CORPORATE TRANSACTION. In the event of (i) a sale, lease or other
disposition of all or substantially all of the assets of the Company, (ii) a
merger or consolidation in which the Company is not the surviving corporation,
or (iii) a reverse merger in which the Company is the surviving corporation but
the shares of Common Stock outstanding immediately preceding the merger are
converted by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, then any surviving corporation or acquiring
corporation shall assume or continue any Options outstanding under the Plan or
shall substitute similar stock awards (including an award to acquire the same
consideration paid to the stockholders in the transaction described in this
subsection 10(c)) for those outstanding under the Plan. In the event any
surviving corporation or acquiring corporation refuses to assume or continue
such Options or to substitute similar stock awards for those outstanding under
the Plan, then with respect to Options held by Optionholders whose Continuous
Service has not terminated, the vesting of such Options (and, if applicable, the
time during which such Options may be exercised) shall be accelerated in full,
and the Options shall terminate if not exercised (if applicable) at or prior to
such event. With respect to any other

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Options outstanding under the Plan, such Options shall terminate if not
exercised (if applicable) at or prior to such event.

11.   AMENDMENT OF THE PLAN AND OPTIONS.

      (A) AMENDMENT OF PLAN. The Board at any time, and from time to time, may
amend the Plan. However, except as provided in Section 10 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the stockholders of the Company to the extent stockholder approval
is necessary under applicable laws or regulations or to the extent that such
amendment constitutes a material amendment of the Plan.

      (B) STOCKHOLDER APPROVAL. The Board may, in its sole discretion, submit
any other amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.
Notwithstanding any other provision of the Plan to the contrary, the Board shall
not, without prior stockholder approval, (A) reduce the exercise price of any
outstanding Option under the Plan, (B) cancel any outstanding Option under the
Plan and grant in substitution therefor, on either an immediate or delayed
basis, a new Option under the Plan covering the same or a different number of
shares of Common Stock or cash, or (C) take any other action with respect to any
outstanding Option under the Plan that is treated as a repricing of such Option
pursuant to generally accepted accounting principles.

      (C) CONTEMPLATED AMENDMENTS. It is expressly contemplated that the Board
may amend the Plan in any respect the Board deems necessary or advisable to
provide eligible Employees with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated thereunder
relating to Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance therewith.

      (D) NO IMPAIRMENT OF RIGHTS. Rights under any Option granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(i) the Company requests the consent of the Optionholder and (ii) the
Optionholder consents in writing.

      (E) AMENDMENT OF OPTIONS. The Board at any time, and from time to time,
may amend the terms of any one or more Options; provided, however, that the
rights under any Option shall not be impaired by any such amendment unless (i)
the Company requests the consent of the Optionholder and (ii) the Optionholder
consents in writing.

12.   TERMINATION OR SUSPENSION OF THE PLAN.

      (A) PLAN TERM. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board or approved by
the stockholders of the Company, whichever is earlier. No Options may be granted
under the Plan while the Plan is suspended or after it is terminated.

      (B) NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan shall
not impair rights and obligations under any Option granted while the Plan is in
effect except with the written consent of the Optionholder.

13.   EFFECTIVE DATE OF PLAN.

      The Plan shall become effective as determined by the Board, but no Option
shall be exercised unless and until the Plan has been approved by the
stockholders of the Company, which approval shall be within twelve (12) months
before or after the date the Plan is adopted by the Board.

<PAGE>

14.   CHOICE OF LAW.

      The law of the State of Delaware shall govern all questions concerning the
construction, validity and interpretation of this Plan, without regard to such
state's conflict of laws rules.<PAGE>

                                  EXHIBIT 4.3

                                    EBAY INC.

                        1998 EMPLOYEE STOCK PURCHASE PLAN

                        AS AMENDED ON SEPTEMBER 18, 2003

1.    ESTABLISHMENT OF PLAN.

      eBay Inc. (the "COMPANY") proposes to grant options for purchase of the
Company's Common Stock to eligible employees of the Company, its Participating
Subsidiaries or Affiliates (as hereinafter defined) pursuant to this Employee
Stock Purchase Plan (this "PLAN"). For purposes of this Plan, "PARENT
CORPORATION" and "SUBSIDIARY" shall have the same meanings as "parent
corporation" and "subsidiary corporation" in Sections 424(e) and 424(f),
respectively, of the Internal Revenue Code of 1986, as amended (the "CODE").
"PARTICIPATING SUBSIDIARIES" are Parent Corporations or Subsidiaries that the
Board of Directors of the Company (the "BOARD") designates from time to time as
corporations that shall participate in this Plan. The Board may also designate
as participating companies in the Plan certain affiliates ("AFFILIATES") which
are any entities where the Corporation has a significant equity interest or
significant business relationship and which have been designated as such. The
Company intends this Plan to qualify as an "employee stock purchase plan" under
Section 423 of the Code (including any amendments to or replacements of such
Section), and this Plan shall be so construed. Any term not expressly defined in
this Plan but defined for purposes of Section 423 of the Code shall have the
same definition herein. A total of 3,600,000* shares of the Company's Common
Stock were reserved for issuance under this Plan when originally adopted. In
addition, on each January 1, the aggregate number of shares of the Company's
Common Stock reserved for issuance under the Plan shall be increased
automatically by the number of shares purchased under this Plan in the preceding
calendar year; provided that the aggregate shares reserved under this Plan shall
not exceed 18,000,000* shares. Such number shall be subject to adjustments
effected in accordance with Section 14 of this Plan.

2.    PURPOSE.

      The purpose of this Plan is to provide eligible employees of the Company,
Participating Subsidiaries or Affiliates with a convenient means of acquiring an
equity interest in the Company through payroll deductions or contributions, to
enhance such employees' sense of participation in the affairs of the Company,
Participating Subsidiaries or Affiliates, and to provide an incentive for
continued employment. In addition, the Plan authorizes the grant of options and
the issuance of the Company's Common Stock which do not qualify under Section
423 of the Code pursuant to sub-plans or special rules adopted by the Board or
the Compensation Committee of the Board (as hereinafter defined) designated to
achieve desired tax or other objectives in particular locations outside the
United States.

3.    ADMINISTRATION.

      (A) This Plan shall be administered by the Compensation Committee of the
Board (the "COMMITTEE"). Subject to the provisions of this Plan and the
limitations of Section 423 of the Code or any successor provision in the Code,
all questions of interpretation or application of this Plan shall be determined
by the Committee and its decisions shall be final and binding upon all
participants. Members of the Committee shall receive no compensation

----------
*     Denotes that such share number reflects the stock split of eBay's common
      stock occurring in 8/03.

<PAGE>

for their services in connection with the administration of this Plan, other
than standard fees as established from time to time by the Board for services
rendered by Board members serving on Board committees. All expenses incurred in
connection with the administration of this Plan shall be paid by the Company.

      (B) The Board or the Committee may adopt rules or procedures relating to
the operation and administration of the Plan to accommodate the specific
requirements of local laws and procedures. Without limiting the generality of
the foregoing, the Board or the Committee is specifically authorized to adopt
rules and procedures regarding handling of payroll deductions, contributions,
payment of interest, conversion of local currency, payroll tax, withholding
procedures and handling of stock certificates which vary with local
requirements. The Board or the Committee may adopt such rules, guidelines and
forms as the applicable laws allow to accomplish the transfer of secondary Class
1 National Insurance Contributions ("NIC") in the United Kingdom ("UK") from the
employer to the participants in the UK and to make such transfer of NIC
liability a condition to the exercise of options in the UK.

      (C) The Board or the Committee may also adopt sub-plans applicable to
particular Participating Subsidiaries, Affiliates or locations, which sub-plans
may be designed to be outside the scope of Code Section 423. The rules of such
sub-plans may take precedence over other provisions of this Plan, with the
exception of Paragraph 1 above, but unless otherwise superseded by the terms of
such sub-plan, the provisions of this Plan shall govern the operation of such
sub-plan.

4.    ELIGIBILITY.

      Any employee of the Company, its Participating Subsidiaries or an
Affiliate is eligible to participate in an Offering Period (as hereinafter
defined) under this Plan, subject to Paragraph 19 and except the following:

            (A) employees who are not employed by the Company, a Participating
Subsidiary or an Affiliate (10) days before the beginning of such Offering
Period, except that employees who were employed on the Effective Date of the
Registration Statement filed by the Company with the Securities and Exchange
Commission ("SEC") under the Securities Act of 1933, as amended (the "SECURITIES
ACT") registering the initial public offering of the Company's Common Stock were
eligible to participate in the first Offering Period under the Plan;

            (B) employees who are customarily employed for twenty (20) hours or
less per week, unless local law prohibits exclusion of part-time employees;

            (C) employees who are customarily employed for five (5) months or
less in a calendar year, unless local law prohibits exclusion of such employees;

            (D) employees who, together with any other person whose stock would
be attributed to such employee pursuant to Section 424(d) of the Code, own stock
or hold options to purchase stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Company, any
of its Participating Subsidiaries or an Affiliate or who, as a result of being
granted an option under this Plan with respect to such Offering Period, would
own stock or hold options to purchase stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the
Company, any of its Participating Subsidiaries or an Affiliate; and

            (E) individuals who provide services to the Company, any of its
Participating Subsidiaries or an Affiliate as independent contractors who are
reclassified as common law employees for any reason except for federal income
                                                    ------ ---
and employment tax purposes.

5.    OFFERING DATES.

      The offering periods of this Plan (each, an "OFFERING PERIOD") shall be of
twenty-four (24) months duration commencing on May 1 and November 1 of each year
and ending on April 30 and October 31 of each year; provided, however, that
                                                    --------  -------
notwithstanding the foregoing, the first such Offering Period shall commence on
the first business day on which price quotations for the Company's Common Stock
are available on the Nasdaq National Market (the

<PAGE>

"FIRST OFFERING DATE") and shall end on October 31, 2000. Except for the first
Offering Period, each Offering Period shall consist of four (4) six month
purchase periods (individually, a "PURCHASE PERIOD") during which payroll
deductions or contributions of the participants are accumulated under this Plan.
The first Offering Period shall consist of no more than five and no fewer than
three Purchase Periods, any of which may be greater or less than six months as
determined by the Committee. The first business day of each Offering Period is
referred to as the "OFFERING DATE". The last business day of each Purchase
Period is referred to as the "PURCHASE DATE". The Committee shall have the power
to change the duration of Offering Periods with respect to offerings without
stockholder approval if such change is announced at least fifteen (15) days
prior to the scheduled beginning of the first Offering Period to be affected.
Notwithstanding the foregoing, the Board or the Committee may establish other
Offering Periods in addition to those described above, which shall be subject to
any specific terms and conditions that the Committee approves, including
requirements with respect to eligibility, participation, the establishment of
Purchase Periods and Purchase Dates and other rights under any such Offering. A
participant may be enrolled in only one Offering Period at a time.

6.    PARTICIPATION IN THIS PLAN.

            (A) Eligible employees may become participants in an Offering Period
under this Plan on the first Offering Date after satisfying the eligibility
requirements by delivering a subscription agreement authorizing payroll
deductions or contributions, if Paragraph 6(b) below applies, to the Company's
treasury department (the "TREASURY DEPARTMENT") not later than five (5) days
before such Offering Date. Notwithstanding the foregoing, the Committee may set
a later time for filing the subscription agreement authorizing payroll
deductions or contributions for all eligible employees with respect to a given
Offering Period. An eligible employee who does not deliver a subscription
agreement to the Treasury Department by such date after becoming eligible to
participate in such Offering Period shall not participate in that Offering
Period or any subsequent Offering Period unless such employee enrolls in this
Plan by filing a subscription agreement with the Treasury Department not later
than five (5) days preceding a subsequent Offering Date. Once an employee
becomes a participant in an Offering Period, such employee will automatically
participate in the Offering Period commencing immediately following the last day
of the prior Offering Period unless the employee withdraws or is deemed to
withdraw from this Plan or terminates further participation in the Offering
Period as set forth in Paragraph 11 below. Such participant is not required to
file any additional subscription agreement in order to continue participation in
this Plan.

            (B) Notwithstanding any other provisions of the Plan to the
contrary, in locations where local law prohibits payroll deductions, an eligible
employee may elect to participate through contributions to his account under the
Plan in a form acceptable to the Board or the Committee.

7.    GRANT OF OPTION ON ENROLLMENT.

      Enrollment by an eligible employee in this Plan with respect to an
Offering Period will constitute the grant (as of the Offering Date) by the
Company to such employee of an option to purchase on the Purchase Date up to
that number of shares of Common Stock of the Company determined by dividing (a)
the amount accumulated in such employee's payroll deduction account during such
Purchase Period by (b) the lower of (i) eighty-five percent (85%) of the fair
market value of a share of the Company's Common Stock on the Offering Date (but
in no event less than the par value of a share of the Company's Common Stock),
or (ii) eighty-five percent (85%) of the fair market value of a share of the
Company's Common Stock on the Purchase Date (but in no event less than the par
value of a share of the Company's Common Stock), provided, however, that the
                                                 --------  -------
number of shares of the Company's Common Stock subject to any option granted
pursuant to this Plan shall not exceed the lesser of (x) the maximum number of
shares set by the Committee pursuant to Paragraph 10(c) below with respect to
the applicable Purchase Date, or (y) the maximum number of shares which may be
purchased pursuant to Paragraph 10(b) below with respect to the applicable
Purchase Date. The fair market value of a share of the Company's Common Stock
shall be determined as provided in Paragraph 8 below.

<PAGE>

8.    PURCHASE PRICE.

      The purchase price per share at which a share of Common Stock will be sold
in any Offering Period shall be eighty-five percent (85%) of the lesser of:

            (A) The fair market value on the Offering Date; or

            (B) The fair market value on the Purchase Date.

      For purposes of this Plan, the term "FAIR MARKET VALUE" means, as of any
date, any date, the value of a share of the Company's 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, 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; or
            --------------

            (D) if none of the foregoing is applicable, by the Board in good
            faith, which in the case of the First Offering Date will be the
            price per share at which shares of the Company's Common Stock are
            initially offered for sale to the public by the Company's
            underwriters in the initial public offering of the Company's Common
            Stock pursuant to a registration statement filed with the SEC under
            the Securities Act.

9.    PAYMENT OF PURCHASE PRICE; CHANGES IN PAYROLL DEDUCTIONS; ISSUANCE OF
      SHARES.

            (A)(I) The purchase price of the shares is accumulated by regular
payroll deductions or contributions made during each Offering Period. The
deductions or contributions are made as a percentage of the participant's
compensation in one percent (1%) increments not less than two percent (2%), nor
greater than ten percent (10%) or such lower limit set by the Committee. Payroll
deductions or contributions shall commence on the first payday of the Offering
Period and shall continue to the end of the Offering Period unless sooner
altered or terminated as provided in this Plan;

            (A)(II) "Compensation" means total cash wages or salary and
performance-based pay actually received or deferred by an eligible employee
under this Plan during the applicable Offering Period, including: base wages or
salary; overtime; performance bonuses; commissions; shift differentials;
payments for paid time off; payments in lieu of notice; compensation deferred
under any program or plan, including, without limitation, pursuant to Section
401(k) or Section 125 of the Code; or any other compensation or remuneration
approved as "compensation" by the Board or the Compensation Committee in
accordance with Section 423 of the Code. For purposes of this Plan,
"Compensation" shall not include forms of compensation or remuneration that are
not included or covered by the first sentence in this subparagraph (ii),
including the following: moving allowances; payments pursuant to a severance
agreement; equalization payments; termination pay (including the payout of
accrued vacation time in connection with any such termination); relocation
allowances; expense reimbursements; meal allowances; commuting allowances;
geographical hardship pay; any payments (such as guaranteed bonuses in certain
foreign jurisdictions) with respect to which salary reductions are not permitted
by the laws of the applicable jurisdiction); automobile allowances; sign-on
bonuses; nonqualified executive compensation; any amounts directly or indirectly
paid pursuant to this Plan or any other stock-based plan, including without
limitation any stock option, stock purchase, deferred stock unit, or similar
plan, of the Company or any Subsidiary or Affiliate; or any other

<PAGE>

compensation or remuneration determined not to be "compensation" by the Board or
the Compensation Committee in accordance with Section 423 of the Code.

            (B) A participant may increase or decrease the rate of payroll
deductions or contributions during an Offering Period by filing with the
Treasury Department a new authorization for payroll deductions, in which case
the new rate shall become effective for the next payroll period commencing more
than fifteen (15) days after the Treasury Department's receipt of the
authorization and shall continue for the remainder of the Offering Period unless
changed as described below. Such change in the rate of payroll deductions or
contributions may be made at any time during an Offering Period, but not more
than one (1) change may be made effective during any Purchase Period. A
participant may increase or decrease the rate of payroll deductions or
contributions for any subsequent Offering Period by filing with the Treasury
Department a new authorization for payroll deductions or an election for
contributions not later than fifteen (15) days before the beginning of such
Offering Period.

            (C) A participant may reduce his or her payroll deduction or
contributions percentage to zero during an Offering Period by filing with the
Treasury Department a request for cessation of payroll deductions or
contributions. Such reduction shall be effective beginning with the next payroll
period commencing more than fifteen (15) days after the Treasury Department's
receipt of the request and no further payroll deductions or contributions will
be made for the duration of the Offering Period. Payroll deductions or
contributions credited to the participant's account prior to the effective date
of the request shall be used to purchase shares of Common Stock of the Company
in accordance with Section (e) below. A participant may not resume making
payroll deductions or contributions during the Offering Period in which he or
she reduced his or her payroll deductions or contributions to zero.

            (D) In countries where local law prohibits payroll deductions, at
the time a participant files his or her subscription agreement, instead of
authorization for payroll deductions, he or she shall elect to make
contributions on each payday during the Offering Period at a rate not exceeding
ten percent (10%) of the compensation which he or she receives on such payday,
provided that the aggregate of such contributions during the Offering Period
shall not exceed ten percent (10%) of the aggregate compensation which he or she
would receive during said Offering Period. The Board or the Committee shall
determine whether the amount to be contributed is to be designated as a specific
dollar amount, or as a percentage of the eligible compensation being paid on
such payday, or as either, and may also establish a minimum percentage or amount
for such contributions.

            (E) All participant's payroll deductions or contributions are
credited to his or her account under this Plan and are deposited with the
general funds of the Company. No interest accrues on the payroll deductions or
contributions unless local law requires that payroll deductions or contributions
be held in an interest-bearing account. All payroll deductions or contributions
received or held by the Company may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll
deductions or contributions unless segregation of accounts is required by local
law.

            (F) On each Purchase Date, so long as this Plan remains in effect
and provided that the participant has not submitted a signed and completed
withdrawal form before that date which notifies the Company that the participant
wishes to withdraw from that Offering Period under this Plan and have all funds
accumulated in the account maintained on behalf of the participant as of that
date returned to the participant, the Company shall apply the funds then in the
participant's account to the purchase of whole shares of Common Stock reserved
under the option granted to such participant with respect to the Offering Period
to the extent that such option is exercisable on the Purchase Date. The purchase
price per share shall be as specified in Section 8 of this Plan. Any cash
remaining in a participant's account after such purchase of shares shall be
refunded to such participant in cash, without interest unless local law requires
the payment of interest; provided, however that any amount remaining in such
participant's account on a Purchase Date which is less than the amount necessary
to purchase a full share of Common Stock of the Company shall be carried
forward, without interest, unless local law requires the payment of interest
into the next Purchase Period or Offering Period and in the locations where the
Board or the Committee have determined that such rollover is available under the
Plan, as the case may be. In the event that this Plan has been oversubscribed,
all funds not used to purchase shares on the Purchase Date shall be returned to
the participant, without interest unless local law requires the payment of
interest. No Common Stock shall be purchased on a

<PAGE>

Purchase Date on behalf of any employee whose participation in this Plan has
terminated prior to such Purchase Date.

            (G) Subject to Paragraph 9(h), as promptly as practicable after the
Purchase Date, the Company shall issue shares for the participant's benefit
representing the shares purchased upon exercise of his or her option. If a
participant dies before receiving his or her shares, the account will be set up
in the name of such participant's beneficiary, or the shares will be issued in
such beneficiary's name.

            (H) If, on the Purchase Date, the Company, a Participating
Subsidiary or an Affiliate is required by local law to withhold taxes on a
participant's exercise of his or her options and such participant's compensation
is not sufficient to cover such withholding, the Company will sell the requisite
number of shares to raise the necessary funds to make the withholding.

            (I) During a participant's lifetime, his or her option to purchase
shares hereunder is exercisable only by him or her. The participant will have no
interest or voting right in shares covered by his or her option until such
option has been exercised.

10.   LIMITATIONS ON SHARES TO BE PURCHASED.

            (A) No participant shall be entitled to purchase stock under this
Plan at a rate which, when aggregated with his or her rights to purchase stock
under all other employee stock purchase plans of the Company, any Participating
Subsidiary or an Affiliate, exceeds $25,000 in fair market value, determined as
of the Offering Date (or such other limit as may be imposed by the Code) for
each calendar year in which the employee participates in this Plan. The Company
shall automatically suspend the payroll deductions or contributions of any
participant as necessary to enforce such limit provided that when the Company
automatically resumes making such payroll deductions or accepting contributions,
the Company must apply the rate in effect immediately prior to such suspension.

            (B) No more than two hundred percent (200%) of the number of shares
determined by using eighty-five percent (85%) of the fair market value of a
share of the Company's Common Stock on the Offering Date as the denominator may
be purchased by a participant on any single Purchase Date.

            (C) No participant shall be entitled to purchase more than the
Maximum Share Amount (as defined below) on any single Purchase Date. Not less
than thirty (30) days prior to the commencement of any Offering Period, the
Committee may, in its sole discretion, set a maximum number of shares which may
be purchased by any employee at any single Purchase Date (hereinafter the
"MAXIMUM SHARE AMOUNT"). Until otherwise determined by the Committee, there
shall be no Maximum Share Amount. In no event shall the Maximum Share Amount
exceed the amounts permitted under Paragraph 10(b) above. If a new Maximum Share
Amount is set, then all participants must be notified of such Maximum Share
Amount prior to the commencement of the next Offering Period. The Maximum Share
Amount shall continue to apply with respect to all succeeding Purchase Dates and
Offering Periods unless revised by the Committee as set forth above.

            (D) If the number of shares to be purchased on a Purchase Date by
all employees participating in this Plan exceeds the number of shares then
available for issuance under this Plan, then the Company will make a pro rata
allocation of the remaining shares in as uniform a manner as shall be reasonably
practicable and as the Committee shall determine to be equitable. In such event,
the Company shall give written notice of such reduction of the number of shares
to be purchased under a participant's option to each participant affected.

            (E) Any funds accumulated in a participant's account which are not
used to purchase stock due to the limitations in this Paragraph 10 shall be
returned to the participant as soon as practicable after the end of the
applicable Purchase Period, without interest unless local law requires the
payment of interest.

<PAGE>

11.   WITHDRAWAL.

            (A) Each participant may withdraw from an Purchase Period under this
Plan by signing and delivering to the Treasury Department a written notice to
that effect on a form provided for such purpose. Such withdrawal may be elected
at any time at least fifteen (15) days prior to the end of a Purchase Period.

            (B) Upon withdrawal from this Plan, the accumulated payroll
deductions shall be returned to the withdrawn participant, without interest
unless local law requires the payment of interest, and his or her interest in
this Plan shall terminate. In the event a participant voluntarily elects to
withdraw from this Plan, he or she may not resume his or her participation in
this Plan during the same Offering Period, but he or she may participate in any
Offering Period under this Plan which commences on a date subsequent to such
withdrawal by filing a new authorization for payroll deductions or by commencing
to make contributions in the same manner as set forth in Paragraph 6 above for
initial participation in this Plan.

            (C) If the Fair Market Value on the first day of the current
Offering Period in which a participant is enrolled is higher than the Fair
Market Value on the first day of any subsequent Offering Period, the Company
will automatically enroll such participant in the subsequent Offering Period.
Any funds accumulated in a participant's account prior to the first day of such
subsequent Offering Period will be applied to the purchase of shares on the
Purchase Date immediately prior to the first day of such subsequent Offering
Period. Notwithstanding the foregoing, if the first Offering Date occurs prior
to November 1, 1998 and the Fair Market Value on the First Offering Date is
higher than the Fair Market Value on the first day of the second Offering
Period, any funds accumulated in a participant's account prior to the first day
of the second Offering Period will be applied to the purchase of shares on the
Purchase Date next following the first day of such second Offering Period. A
participant does not need to file any forms with the Company to automatically be
enrolled in the subsequent Offering Period.

12.   TERMINATION OF EMPLOYMENT.

      Termination of a participant's employment for any reason, including
retirement, death or the failure of a participant to remain an eligible employee
of the Company, a Participating Subsidiary or an Affiliate, immediately
terminates his or her participation in this Plan. In such event, the funds
credited to the participant's account will be returned to him or her or, in the
case of his or her death, to his or her legal representative, without interest
unless local law requires the payment of interest. For purposes of this
Paragraph 12, an employee will not be deemed to have terminated employment or
failed to remain in the continuous employ of the Company, of a Participating
Subsidiary or an Affiliate in the case of sick leave, military leave, or any
other leave of absence approved by the Board; provided that such leave is for a
                                              --------
period of not more than ninety (90) days, unless reemployment upon the
expiration of such leave is guaranteed by contract or statute or unless provided
otherwise pursuant to formal policy adopted from time to time by the Company.

13.   RETURN OF PAYROLL DEDUCTIONS AND CONTRIBUTIONS.

      In the event a participant's interest in this Plan is terminated by
withdrawal, termination of employment or otherwise, or in the event this Plan is
terminated by the Board, the Company shall deliver to the participant all
payroll deductions or contributions credited to such participant's account.
Subject to Paragraph 9(e), no interest shall accrue on the payroll deductions or
contributions of a participant in this Plan.

14.   CAPITAL CHANGES.

      Subject to any required action by the stockholders of the Company, the
number of shares of Common Stock covered by each option under this Plan which
has not yet been exercised and the number of shares of Common Stock which have
been authorized for issuance under this Plan but have not yet been placed under
option (collectively, the "RESERVES"), as well as the price per share of Common
Stock covered by each option under this Plan which has not yet been exercised,
shall be proportionately adjusted for any increase or decrease in the number of
issued and outstanding shares of Common Stock of the Company resulting from a
stock split or the payment of a stock dividend (but only on the Common Stock) or
any other increase or decrease in the number of issued and outstanding shares of
Common Stock effected without receipt of any consideration by the Company;
provided,
--------
<PAGE>

however, that conversion of any convertible securities of the Company shall not
-------
be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Committee, whose determination shall be final,
binding and conclusive. Except as expressly provided herein, no issue by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common Stock subject
to an option.

            In the event of the proposed dissolution or liquidation of the
Company, the Offering Period will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the
Committee. The Committee may, in the exercise of its sole discretion in such
instances, declare that this Plan shall terminate as of a date fixed by the
Committee and give each participant the right to purchase shares under this Plan
prior to such termination. In the event of (i) a merger or consolidation in
which the Company is not the surviving corporation (other than a merger or
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the stockholders of the Company or their relative stock
holdings and the options under this Plan are assumed, converted or replaced by
the successor corporation, which assumption will be binding on all
participants), (ii) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (iii) the sale of all or
substantially all of the assets of the Company or (iv) the acquisition, sale, or
transfer of more than 50% of the outstanding shares of the Company by tender
offer or similar transaction, the Plan will continue with regard to Offering
Periods that commenced prior to the closing of the proposed transaction and
shares will be purchased based on the Fair Market Value of the surviving
corporation's stock on each Purchase Date, unless otherwise provided by the
Committee consistent with pooling of interests accounting treatment.

            The Committee may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the Reserves, as well as the price
per share of Common Stock covered by each outstanding option, in the event that
the Company effects one or more reorganizations, recapitalizations, rights
offerings or other increases or reductions of shares of its outstanding Common
Stock, or in the event of the Company being consolidated with or merged into any
other corporation.

15.   NONASSIGNABILITY.

      Neither payroll deductions or contributions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
shares under this Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and distribution
or as provided in Paragraph 22 below) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be void and without
effect.

16.   REPORTS.

      Individual accounts will be maintained for each participant in this Plan.
Each participant shall receive promptly after the end of each Purchase Period a
report of his or her account setting forth the total funds accumulated in the
participant's account, the number of shares purchased, the per share price
thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

17.   NOTICE OF DISPOSITION.

      Each participant shall notify the Company in writing if the participant
disposes of any of the shares purchased in any Offering Period pursuant to this
Plan if such disposition occurs within two (2) years from the Offering Date or
within one (1) year from the Purchase Date on which such shares were purchased
(the "NOTICE PERIOD"). The Company may, at any time during the Notice Period,
place a legend or legends on any certificate representing shares acquired
pursuant to this Plan requesting the Company's transfer agent to notify the
Company of any transfer of the shares. The obligation of the participant to
provide such notice shall continue notwithstanding the placement of any such
legend on the certificates.

<PAGE>

18.   NO RIGHTS TO CONTINUED EMPLOYMENT.

      Neither this Plan nor the grant of any option hereunder shall confer any
right on any employee to remain in the employ of the Company, any Participating
Subsidiary or an Affiliate, or restrict the right of the Company, any
Participating Subsidiary or an Affiliate to terminate such employee's
employment.

19.   EQUAL RIGHTS AND PRIVILEGES.

      All employees who participate in the Plan shall have the same rights and
privileges under the Plan except for differences which may be mandated by local
law and which are consistent with Code Section 423(b)(5); provided, however,
that employees participating in a sub-plan adopted pursuant to Paragraph 3 which
is not designed to qualify under Code Section 423 need not have the same rights
and privileges as employees participating in the Code Section 423 Plan. The
Board or the Committee may impose restrictions on eligibility and participation
of employees who are officers and directors to facilitate compliance with
federal or state securities laws or foreign laws. This Paragraph 19 shall take
precedence over all other provisions in this Plan.

20.   NOTICES.

      All notices or other communications by a participant to the Company under
or in connection with this Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person,
designated by the Company for the receipt thereof.

21.   TERM; STOCKHOLDER APPROVAL.

      After this Plan is adopted by the Board, this Plan will become effective
on the First Offering Date (as defined above). This Plan shall be approved by
the stockholders of the Company, in any manner permitted by applicable corporate
law, within twelve (12) months before or after the date this Plan is adopted by
the Board. No purchase of shares pursuant to this Plan shall occur prior to such
stockholder approval. This Plan shall continue until the earlier to occur of (a)
termination of this Plan by the Board (which termination may be effected by the
Board at any time), (b) issuance of all of the shares of Common Stock reserved
for issuance under this Plan, or (c) ten (10) years from the adoption of this
Plan by the Board.

22.   DESIGNATION OF BENEFICIARY.

            (A) A participant may file a written designation of a beneficiary
who is to receive any shares and cash, if any, from the participant's account
under this Plan in the event of such participant's death subsequent to the end
of an Purchase Period but prior to delivery to him of such shares and cash. In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under this Plan in the event
of such participant's death prior to a Purchase Date.

            (B) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under this
Plan who is living at the time of such participant's death, the Company shall
deliver such shares or cash to the executor or administrator of the estate of
the participant, or if no such executor or administrator has been appointed (to
the knowledge of the Company), the Company, in its discretion, may deliver such
shares or cash to the spouse or to any one or more dependents or relatives of
the participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

23.   CONDITIONS UPON ISSUANCE OF SHARES; LIMITATION ON SALE OF SHARES.

      Shares shall not be issued with respect to an option unless the exercise
of such option and the issuance and delivery of such shares pursuant thereto
shall comply with all applicable provisions of law, domestic or foreign,
including, without limitation, the Securities Act, the Securities Exchange Act
of 1934, as amended, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange or automated quotation system

<PAGE>

upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

24.   APPLICABLE LAW.

      The Plan shall be governed by the substantive laws (excluding the conflict
of laws rules) of the State of California.

25.   AMENDMENT OR TERMINATION OF THIS PLAN.

      The Board may at any time amend, terminate or extend the term of this
Plan, except that any such termination cannot affect options previously granted
under this Plan, nor may any amendment make any change in an option previously
granted which would adversely affect the right of any participant, nor may any
amendment be made without approval of the stockholders of the Company obtained
in accordance with Paragraph 21 above within twelve (12) months of the adoption
of such amendment (or earlier if required by Paragraph 21) if such amendment
would:

            (A)   increase the number of shares that may be issued under this
                  Plan; or

            (B)   change the designation of the employees (or class of
                  employees) eligible for participation in this Plan.

      Notwithstanding the foregoing, the Board may make such amendments to the
Plan as the Board determines to be advisable, if the continuation of the Plan or
any Offering Period would result in financial accounting treatment for the Plan
that is different from the financial accounting treatment in effect on the date
this Plan is adopted by the Board.

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