Exhibit 10.01
January 12, 2005
Scott Thompson
45 Roberts Way
Hillsborough, CA 94010
Dear Scott:
eBay Inc. (“the Company”
or “eBay”) is pleased to offer you, subject to approval
by eBay’s Board of Directors, the exempt position of Senior
Vice President, Chief Technology Officer, PayPal at a salary of
$16,346.16 paid bi-weekly, which is equivalent to an annualized
salary of $425,000.16. In addition, the Company may award you
discretionary bonuses from time to time.
You will be entitled to the benefits
that eBay customarily makes available to employees in positions
comparable to yours and it will be recommended to the Board of
Directors that you be granted an option for the purchase of 275,000
shares of the Company’s Common Stock. The options will be
granted under the Company’s 2001 Equity Incentive Plan and,
assuming you remain an employee, will vest with respect to 25% of
the shares subject to the option one year after the commencement of
your employment and, at the end of each month thereafter, with
respect to an additional 1/48 of the shares subject to the option.
Enclosed is the Company’s securities trading policy, which
outlines the procedures and guidelines governing securities trades
by company personnel. Please review the enclosed trading policy
carefully, sign and date the certification (page one of the
agreement) and return it to me.
You will be eligible to participate
in eBay’s Executive Management Incentive Program (EMIP),
which is comprised of 5 components: 4 quarterly and 1 annual.
Payouts are based on individual achievement as well as Company
performance. Your target bonus under the current program would be
60% of your base salary. Eligibility for this program begins with
your first full business quarter of employment. You must be
employed on the last day of the calendar quarter to be eligible for
the quarterly pay out. To be eligible for the annual bonus
component, you would need to be employed on the first day of the 4
th calendar quarter and be employed on the last day of
such quarter.
You will also be eligible to earn a
bonus of up to $500,000 in accordance with terms of the following
schedule, subject to the conditions contained herein and initial
approval by eBay’s Board of Directors: the first installment
of $250,000 would be payable within two payroll periods of your
commencement of employment with the Company; the last installment
of $250,000 would be payable twelve months from your commencement
of employment with eBay. Each scheduled bonus payment is subject to
your continued full time employment with the Company on each
scheduled payment date and to standard payroll deducti
