<SUBMISSION>
<ACCESSION-NUMBER>0000891618-03-002629
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20030626
<FILING-DATE>20030516
<EFFECTIVENESS-DATE>20030516
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>EBAY INC
<CIK>0001065088
<ASSIGNED-SIC>7389
<IRS-NUMBER>770430924
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-24821
<FILM-NUMBER>03709211
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2145 HAMILTON AVENUE
<CITY>SAN JOSE
<STATE>CA
<ZIP>95125
<PHONE>408-376-7400
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2145 HAMILTON AVENUE
<CITY>SAN JOSE
<STATE>CA
<ZIP>95125
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>f89686dedef14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>eBay Inc., DEF 14A, 06/26/03</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>SCHEDULE 14A INFORMATION</B>
</FONT>

<P align="center"><FONT size="2">Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities Exchange Act of 1934<BR>
(Amendment No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="29%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">Filed by the Registrant</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
<FONT face="Wingdings">&#120;</FONT></FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Filed by a Party other than the Registrant</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
<FONT face="Wingdings">&#111;</FONT></FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Check the appropriate box:
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Preliminary Proxy Statement</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#120;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Definitive Proxy Statement</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Definitive Additional Materials</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Soliciting Material under Rule&nbsp;14a-12</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">eBay Inc.
</FONT>

<DIV align="center"><FONT size="2"><HR align="center" size="1" noshade>
(Name of Registrant as Specified In Its Charter)
</FONT>
</DIV>

<P align="center"><HR align="center" size="1" noshade>

<DIV align="center"><FONT size="2">(Name of Person(s) Filing Proxy Statement if Other Than the Registrant)
</FONT>
</DIV>

<P align="left"><FONT size="2">Payment of Filing Fee (Check the appropriate box)
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#120;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
No fee required.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>1.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Title of each class of securities to which transaction applies:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>2.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Aggregate number of securities to which transaction applies:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>3.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Per unit price or other underlying value of transaction computed pursuant
to Exchange Act Rule&nbsp;0-11 (set forth the amount on which the filing fee is
calculated and state how it was determined):</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>4.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Proposed maximum aggregate value of transaction:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>5.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Total fee paid:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Fee paid previously with preliminary materials.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Check box if any part of the fee is offset as provided by
Exchange Act Rule&nbsp;0-11(a)(2) and identify the filing for
which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form
or Schedule and the date of its filing.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>6.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Amount Previously Paid:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>7.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Form, Schedule or Registration Statement No.:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>8.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Filing Party:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2"><B>9.</B></FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Date Filed:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><HR align="center" size="1" noshade></TD>
</TR>
</TABLE>

<P align="center"><FONT size="2"></FONT>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="4">eBay Inc.</FONT></B>

<DIV align="center">
<B><FONT size="2">2145 Hamilton Avenue</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">San Jose, California 95125</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="31%" align="center" noshade>

<P align="center">
<B><FONT size="2">NOTICE OF ANNUAL MEETING OF
STOCKHOLDERS</FONT></B>

<DIV align="center">
<B><FONT size="2">TO BE HELD ON JUNE&nbsp;26, 2003</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">To the Stockholders of eBay Inc.:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">NOTICE IS HEREBY GIVEN
</FONT></B><FONT size="2">that the Annual Meeting of
Stockholders of <B>eBAY INC.</B>, a Delaware corporation, will
be held on Thursday, June&nbsp;26, 2003, at 8:00&nbsp;a.m.
Eastern time at The Peabody Hotel, Plaza&nbsp;H,
9801&nbsp;International Drive, Orlando, Florida 32819 for the
following purposes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD align="left">
    <FONT size="2">To elect two directors to hold office until our
    2006 Annual Meeting of Stockholders.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD align="left">
    <FONT size="2">To approve an amendment to our 2001 Equity
    Incentive Plan to increase by 14,000,000 the number of shares of
    common stock that may be issued under our 2001 Plan.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD align="left">
    <FONT size="2">To approve our 2003 Deferred Stock Unit Plan.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD align="left">
    <FONT size="2">To ratify the selection of PricewaterhouseCoopers
    LLP as our independent auditors for our fiscal year ending
    December&nbsp;31, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD align="left">
    <FONT size="2">To transact such other business as may properly
    come before the meeting or any adjournment or postponement of
    the meeting thereof.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These business items are described more fully in
the Proxy Statement accompanying this Notice.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors has fixed the close of
business on April&nbsp;30, 2003 as the record date for
identifying those stockholders entitled to notice of and to vote
at this Annual Meeting and at any adjournment or postponement of
this meeting.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="36%"></TD>
    <TD width="64%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">By Order of the Board of Directors
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <IMG src="f89686def8968601.gif" alt="(Michael R. Jacobson)"></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="2">Michael R. Jacobson</FONT></B></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Secretary
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">San Jose, California
</FONT>

<DIV align="left">
<FONT size="2">May&nbsp;16, 2003
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">The proxy statement and the accompanying form
of proxy are being mailed on or about May&nbsp;16, 2003 in
connection with the solicitation of proxies on behalf of the
Board of Directors of eBay. All stockholders are cordially
invited to attend the meeting in person. Whether or not you
expect to attend the Annual Meeting, you are urged to vote your
shares as soon as possible so that your shares can be voted at
the Annual Meeting in accordance with your instructions on the
proxy card. For specific instructions on voting, please refer to
the instructions on the proxy card.</FONT></B>

<DIV>&nbsp;</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND OUR 2003 ANNUAL MEETING</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Corporate Governance</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Proposal 1</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">Election of Directors</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Proposal 2</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">Approval of Amendment to 2001 Equity Incentive Plan</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">Proposal 3</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">Approval of 2003 Deferred Stock Unit Plan</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">Proposal 4</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">Ratification of Selection of Independent Auditors</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">Our Executive Officers</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">Executive Compensation</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">Report of the Compensation Committee of the Board of Directors on Executive Compensation(1)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">Compensation Committee Interlocks and Insider Participation</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">Certain Relationships and Related Transactions</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="4">eBay Inc.</FONT></B>

<DIV align="center">
<B><FONT size="2">2145 Hamilton Avenue</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">San Jose, California 95125</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="36%" align="center" noshade>

<DIV align="center">
<B>PROXY STATEMENT</B>
</DIV>

<DIV align="center">
<HR size="1" width="36%" align="center" noshade>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND OUR 2003 ANNUAL MEETING" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center">
<B><FONT size="2">QUESTIONS AND ANSWERS ABOUT THE PROXY
MATERIALS AND</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">OUR 2003 ANNUAL MEETING</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">Why am I receiving these materials?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">eBay&#146;s Board of Directors, or the Board, is
    providing these proxy materials to you in connection with
    eBay&#146;s Annual Meeting of Stockholders, which will take
    place on June&nbsp;26, 2003. Stockholders are invited to attend
    the Annual Meeting and are requested to vote on the proposals
    described in this proxy statement.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What information is contained in these
    materials?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The information included in this proxy statement
    relates to the proposals to be voted on at the Annual Meeting,
    the voting process, the compensation of directors and our most
    highly paid executive officers, and certain other required
    information. eBay&#146;s 2002 Annual Report and audited
    financial statements, a proxy card and a return envelope are
    also enclosed.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What proposals will be voted on at the Annual
    Meeting?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">There are four proposals scheduled to be voted on
    at the Annual Meeting:
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;the election of two directors for a
    three-year term;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;the approval of an amendment to the
    2001 Equity Incentive Plan to increase the authorized number of
    shares of common stock by &nbsp;&nbsp;14,000,000 shares;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;the approval of our 2003 Deferred
    Stock Unit Plan; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;the ratification of the appointment
    of PricewaterhouseCoopers LLP as our independent auditors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What are eBay&#146;s Board of Directors&#146;
    voting recommendations?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">eBay&#146;s Board recommends that you vote your
    shares &#147;FOR&#148; each of the nominees to the Board,
    &#147;FOR&#148; the approval of the amendment to the 2001 Equity
    Incentive Plan, &#147;FOR&#148; the approval of the 2003
    Deferred Stock Unit Plan and &#147;FOR&#148; the ratification of
    the appointment of PricewaterhouseCoopers LLP as our independent
    auditors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What class of shares is entitled to be voted?
    How many shares can vote?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Each share of eBay&#146;s common stock
    outstanding as of the close of business on April&nbsp;30, 2003,
    the record date, is entitled to one vote at the Annual Meeting.
    At the close of business on April&nbsp;30, 2003, 317,497,841
    shares of common stock were outstanding and entitled to vote.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What shares owned by me can be
    voted?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">All shares owned by you as of the close of
    business on the record date of April&nbsp;30, 2003 may be voted
    by you. You may cast one vote per share of common stock that you
    held on the record date. These shares include shares that are
    (1)&nbsp;held of record directly in your name, including shares
    purchased through eBay&#146;s stock option plans and
    (2)&nbsp;held for you as the beneficial owner through a
    stockbroker, bank or other nominee.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What is the difference between holding shares
    as a stockholder of record and as a beneficial owner?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Most stockholders of eBay hold their shares
    through a stockbroker, bank or other nominee rather than
    directly in their own name. As summarized below, there are some
    distinctions between shares held of record and those owned
    beneficially.
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;<B>Stockholder of Record</B>
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">If your shares are registered directly in your
    name with eBay&#146;s transfer agent, Mellon Investor Services,
    you are considered, with respect to those shares, the
    stockholder of record, and these proxy materials are being sent
    directly to you by eBay. As the stockholder of record, you have
    the right to grant your voting proxy directly to eBay or to vote
    in person at the Annual Meeting. eBay has enclosed a proxy card
    for you to use. You may also vote by Internet or by telephone as
    described below under &#147;How can I vote my shares without
    attending the Annual Meeting?&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">&#149;&nbsp;<B>Beneficial Owner</B>
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2"> If your shares are held in a stock brokerage
    account or by a bank or other nominee, you are considered the
    beneficial owner of shares held in street name, and these proxy
    materials are being forwarded to you by your broker or nominee
    who is considered, with respect to those shares, the stockholder
    of record. As the beneficial owner, you have the right to direct
    your broker on how to vote and you are also invited to attend
    the Annual Meeting. However, since you are not the stockholder
    of record, you may not vote these shares in person at the Annual
    Meeting. Your broker or nominee has enclosed a voting
    instruction card for you to use in directing the broker or
    nominee regarding how to vote your shares. You may also vote by
    Internet or by telephone as described below under &#147;How can
    I vote my shares without attending the Annual Meeting?&#148; in
    this section.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">Can I attend the Annual Meeting?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">You will be admitted to the Annual Meeting only
    if you are listed as a stockholder of record as of
    April&nbsp;30, 2003, and bring proof of identification. If you
    hold your shares through a stock broker or other nominee, you
    will need to provide proof of ownership by bringing either a
    copy of the voting instruction card provided by your broker or a
    copy of a brokerage statement showing your share ownership as of
    April&nbsp;30, 2003. If you do not attend the Annual Meeting,
    you can listen to a webcast of the proceedings at eBay&#146;s
    investor relations site at <I>www.shareholder.com/ebay.</I>
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">How can I vote my shares in person at the
    Annual Meeting?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Shares held directly in your name as the
    stockholder of record may be voted in person at the Annual
    Meeting. If you choose to do so, please bring the enclosed proxy
    card and proof of identification. Even if you plan to attend the
    Annual Meeting, eBay recommends that you vote your shares in
    advance as described below so that your vote will be counted if
    you later decide not to attend the Annual Meeting.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Shares held in street name may be voted in person
    by you only if you obtain a signed proxy from the record holder
    giving you the right to vote the shares.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">How can I vote my shares without attending the
    Annual Meeting?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Whether you hold shares directly as the
    stockholder of record or beneficially in street name, you may
    direct your vote without attending the Annual Meeting by
    Internet, telephone or completing and mailing your proxy card or
    voting instruction card in the enclosed pre-paid envelope.
    Please refer to the enclosed materials for details.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">Can I change my vote?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">You may change your proxy instructions at any
    time before it is voted at the Annual Meeting. Proxies may be
    revoked by any of the following actions: (1)&nbsp;filing a
    written notice of revocation with our Corporate Secretary at our
    principal executive office (2145 Hamilton Avenue, San Jose,
    California 95125); (2)&nbsp;filing a properly executed proxy
    showing a later date with our Corporate Secretary at our
    principal executive office; or (3)&nbsp;attending the Annual
    Meeting and voting in person (attendance at the meeting will
    not, by itself, revoke a proxy).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">How are votes counted?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">In the election of directors, you may vote
    &#147;FOR&#148; all of the nominees or your vote may be
    &#147;WITHHELD&#148; with respect to one or more of the
    nominees. For the approval of the amendment to the 2001 Equity
    Incentive Plan, the approval of the 2003 Deferred Stock Unit
    Plan and the ratification of the selection of
    PricewaterhouseCoopers LLP, you may vote &#147;FOR&#148;,
    &#147;AGAINST&#148; or &#147;ABSTAIN&#148;. If you
    &#147;ABSTAIN&#148;, it has the same effect as a vote
    &#147;AGAINST&#148;. If you sign and return your proxy card or
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">2
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">broker voting instruction card without giving
    specific voting instructions, your shares will be voted as
    recommended by our Board of Directors, except that in the case
    of a broker voting instruction card, your broker may only vote
    on those matters over which the broker has discretionary voting
    power.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">Who will count the votes?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">A representative of ADP Investor Communication
    Services will tabulate the votes and act as the inspector of
    election.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What is the quorum requirement for the Annual
    Meeting?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The quorum requirement for holding the Annual
    Meeting and transacting business is a majority of the
    outstanding shares entitled to be voted. The shares may be
    present in person or represented by proxy at the Annual Meeting.
    Both abstentions and broker non-votes are counted as present for
    the purpose of determining the presence of a quorum. Broker
    non-votes, however, are not counted as shares present and
    entitled to be voted with respect to the matter on which the
    broker has expressly not voted. Thus, broker non-votes will not
    affect the outcome of any of the matters being voted on at the
    Annual Meeting. Generally, broker non-votes occur when shares
    held by a broker for a beneficial owner are not voted with
    respect to a particular proposal because (1)&nbsp;the broker has
    not received voting instructions from the beneficial owner and
    (2)&nbsp;the broker lacks discretionary voting power to vote
    such shares.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What is the voting requirement to approve each
    of the proposals?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">In the election for directors, the two persons
    receiving the highest number of &#147;FOR&#148; votes will be
    elected. The proposal to amend the 2001 Equity Incentive Plan,
    the proposal to approve the 2003 Deferred Stock Unit Plan and
    the proposal to ratify the selection of the auditors each
    require the affirmative &#147;FOR&#148; vote of a majority of
    those shares present and entitled to vote. If you are a
    beneficial owner and do not provide the stockholder of record
    with voting instructions, your shares may constitute broker
    non-votes, as described above in &#147;What is the quorum
    requirement for the Annual Meeting?&#148; in this section. In
    tabulating the voting result for any particular proposal, shares
    which constitute broker non-votes are not counted.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">What does it mean if I receive more than one
    proxy or voting instruction card?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">It means your shares are registered differently
    or are in more than one account. Please provide voting
    instructions for all proxy and voting instruction cards you
    receive.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">Where can I find the voting results of the
    Annual Meeting?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">eBay will announce preliminary voting results at
    the Annual Meeting and publish final results in eBay&#146;s
    Quarterly Report on Form&nbsp;10-Q for the second quarter of
    fiscal 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">Who will bear the cost of soliciting votes for
    the Annual Meeting?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">eBay will pay the entire cost of preparing,
    assembling, printing, mailing and distributing these proxy
    materials. We will provide copies of these proxy materials to
    banks, brokerage houses, fiduciaries and custodians holding in
    their names shares of our common stock beneficially owned by
    others so that they may forward these proxy materials to the
    beneficial owners. eBay has retained the services of Georgeson
    Shareholder Communications Inc., a professional proxy
    solicitation firm, to aid in the solicitation of proxies.
    Georgeson may solicit proxies by personal interview, mail,
    telephone and electronic communications. eBay estimates that it
    will pay Georgeson its customary fee, estimated to be
    approximately $6,500, plus reasonable out-of-pocket expenses
    incurred in the process of soliciting proxies. In addition, eBay
    may reimburse brokerage firms and other persons representing
    beneficial owners of shares for their expenses in forwarding
    solicitation material to such beneficial owners. Solicitations
    may also be made by personal interview, telephone and electronic
    communication by directors, officers and other employees of
    eBay, but we will not additionally compensate our directors,
    officers or other employees for these services.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">May I propose actions for consideration at
    next year&#146;s Annual Meeting or nominate individuals to serve
    as directors?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">You may submit proposals for consideration at
    future annual stockholder meetings. In order for a stockholder
    proposal to be considered for inclusion in the proxy materials
    for our 2004 Annual Meeting of
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">3
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Stockholders your proposal must be received by
    our Corporate Secretary no later than January&nbsp;16, 2004. A
    stockholder proposal or a nomination for director that is
    received after this date will not be included in our proxy
    statement and proxy but will otherwise be considered at the 2004
    Annual Meeting so long as it is submitted to our Corporate
    Secretary no earlier than March&nbsp;28, 2004, and no later than
    April&nbsp;27, 2004. We advise you to review our Bylaws, which
    contain this and other requirements with respect to advance
    notice of stockholder proposals and director nominations. Our
    Bylaws were filed with the Securities and Exchange Commission,
    or SEC, as an exhibit to our Quarterly Report on Form&nbsp;10-Q
    filed on November&nbsp;13, 1998, which can be viewed by visiting
    our investor relations website at
    <I>www.shareholder.com/ebay/edgar.cfm </I>and may also be
    obtained by writing to our Corporate Secretary at our principal
    executive office (2145 Hamilton Avenue, San Jose, California
    95125).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">How can I get electronic access to the Proxy
    Statement and Annual Report?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">This proxy statement and our 2002 Annual Report
    may be viewed online on our investor relations website at
    <I>www.shareholder.com/ebay/annual.cfm</I>. You can also elect
    to receive an email that will provide an electronic link to
    future annual reports and proxy statements rather than receiving
    paper copies of these documents. Choosing to receive your proxy
    materials electronically will save us the cost of printing and
    mailing documents to you.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">You can choose to receive future proxy materials
    electronically by visiting <I>www.icsdelivery.com/ebay</I>. If
    you choose to receive future proxy materials electronically, you
    will receive an email next year with instructions containing a
    link to those materials and a link to the proxy voting site.
    Your choice to receive proxy materials electronically will
    remain in effect until you write or call eBay Investor Relations
    and tell us otherwise.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">Q:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <B><FONT size="2">How do I obtain a separate set of proxy
    materials if I share an address with other
    stockholders?</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <B><FONT size="2">A:</FONT></B></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">To reduce expenses, in some cases, we are
    delivering one set of proxy materials to certain stockholders
    who share an address, unless otherwise requested. A separate
    proxy card is included in the proxy materials for each of these
    stockholders. If you reside at such an address and wish to
    receive a separate copy of the proxy materials, you may visit
    our investor relations website at <I>www.shareholder.com/ebay
    </I>or contact eBay Investor Relations by mail to 2145 Hamilton
    Avenue, San Jose, California 95125 or by telephone at
    408-376-7493. You may also contact eBay Investor Relations if
    you would like to receive separate proxy materials in the
    future, or if you are receiving multiple copies of our proxy
    materials and would like to receive only one copy in the future.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">4
</FONT>
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<!-- link1 "Corporate Governance" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center">
<B><FONT size="2">CORPORATE GOVERNANCE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business is managed by our employees under
the direction and oversight of the Board of Directors. Except
for Ms.&nbsp;Whitman, none of our Board members is an employee
of eBay. The Board limits membership on the Audit Committee, the
Compensation Committee, and the Corporate Governance and
Nominating Committee to independent non-employee directors. We
keep Board members informed of our business through discussions
with management, materials we provide to them, visits to our
offices and their participation in Board and Board committee
meetings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors has adopted corporate
governance guidelines which, along with the charters of the
Board committees and the company&#146;s Code of Ethics for
Senior Financial Advisors, provide the framework for the
governance of the company. A complete copy of our governance
guidelines, the charters of Board committees and our code of
ethics may be found on our investor relations website at
<I>www.shareholder.com/ebay/corp-gov.cfm</I>. The Audit
Committee charter is also attached as Appendix&nbsp;A to this
proxy statement.
</FONT>

<P align="left">
<B><FONT size="2">OUR CORPORATE GOVERNANCE PRACTICES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe open, effective and accountable
corporate governance practices are key to our relationship with
our stockholders. In order to help our stockholders understand
our commitment to this relationship and its governance
practices, several of our key governance initiatives are
summarized below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Adopting Governance
Guidelines.</FONT></I><FONT size="2"> The Board has adopted a
set of governance guidelines to set a framework within which the
Board will conduct its business. The governance guidelines can
be found on our website at
<I>www.shareholder.com/ebay/corp-gov.cfm </I>and are summarized
below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Monitoring Board
Effectiveness.</FONT></I><FONT size="2"> It is important to eBay
that the Board and its committees are performing effectively and
in the best interest of the company and its stockholders. The
Board is responsible for assessing its effectiveness in
fulfilling its obligations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Enhancing Board Committee
Responsibilities.</FONT></I><FONT size="2"> Board committees
help the Board run effectively and efficiently. They do not
replace the oversight of the Board as a whole. There are
currently three committees, each of which is made up solely of
independent directors: the Audit Committee; the Compensation
Committee; and the Corporate Governance and Nominating Committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each committee meets regularly and has a written
charter approved by the Board. In addition, at each regularly
scheduled Board meeting, a member of each committee reports on
any significant matters addressed by the committee. In 2002,
after reviewing the Sarbanes-Oxley Act of 2002 and the proposed
rules of the SEC and the Nasdaq Stock Market, the Board revised
all of its committee charters to voluntarily implement the
proposed standards and to expand the responsibilities of each
committee as well as establishing independence and
self-assessment requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Establishing Formal Closed
Sessions.</FONT></I><FONT size="2"> At the conclusion of each
regularly scheduled Board meeting, the independent directors
have the opportunity to meet without our management or the other
directors. At these meetings, the independent directors
designate a director to lead the discussions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Expanding Board
Compensation.</FONT></I><FONT size="2"> Board compensation is
determined by the Compensation Committee. In 2002, Board
compensation was 100% equity based. After a review, in
December&nbsp;2002, Board compensation was substantially revised
by the Board, with equity compensation reduced and cash
compensation added, as more thoroughly described under the
heading &#147;Compensation of Directors&#148; below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Hiring Outside
Advisors.</FONT></I><FONT size="2"> The Board and each of its
committees may retain outside advisors and consultants of their
choosing at the company&#146;s expense. The Board need not
obtain management&#146;s consent to retain outside advisors.
</FONT>

<P align="center"><FONT size="2">5
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Avoiding Conflicts of
Interest.</FONT></I><FONT size="2"> eBay expects its directors,
executives and employees to conduct themselves with the highest
degree of integrity, ethics and honesty. eBay&#146;s credibility
and reputation depend upon the good judgment, ethical standards
and personal integrity of each director, executive and employee.
In order to better protect eBay and its stockholders, eBay
updated its code of business conduct and ethics to provide
clearer conflict of interest guidelines to its employees, as
well as reporting and investigatory procedures.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Providing
Transparency.</FONT></I><FONT size="2"> eBay believes it is
important that stockholders understand the governance practices
of eBay. In order to help ensure transparency of our practices
we have posted information regarding our corporate governance
procedures on our website at
<I>www.shareholder.com/ebay/corp-gov.cfm</I>.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Ensuring Auditor
Independence.</FONT></I><FONT size="2"> eBay has taken a number
of steps to ensure continued independence of our outside
auditor. Our independent auditors report directly to the Audit
Committee and we limit the use of our audit firm for non-audit
services.
</FONT>

<P align="left">
<B><FONT size="2">BOARD COMMITTEES AND MEETINGS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2002, our Board of Directors held nine
meetings. The Board of Directors has an Audit Committee, a
Compensation Committee and a Corporate Governance and Nominating
Committee. Our Board&#146;s governance principles, as well as
the charters of each of the Board&#146;s committees, are set
forth on the corporate governance section of the eBay website at
<I>www.shareholder.com/ebay/corp-gov.cfm</I>. Any changes in
these governance principles, or in other governance documents,
will be reflected on the same location of the eBay website.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee consists of
Messrs.&nbsp;Kagle and Cook and Ms.&nbsp;Lepore. The Audit
Committee held seven meetings during fiscal year 2002. The
primary responsibilities of the Audit Committee are to meet with
our independent auditors to review the results of the annual
audit and to discuss the financial statements, including the
independent auditors&#146; judgment about the quality of
accounting principles, the reasonableness of significant
judgments and the clarity of the disclosures in the financial
statements. Additionally, the Audit Committee meets with our
independent auditors to review the interim financial statements
prior to the filing of our Quarterly Reports on Form&nbsp;10-Q,
recommends to the Board of Directors the independent auditors to
be retained, oversees the independence of the independent
auditors, evaluates the independent auditors&#146; performance,
receives and considers the independent auditors&#146; comments
as to controls, adequacy of staff and management performance and
procedures in connection with audit and financial controls,
including our system to monitor and manage business risks and
legal and ethical compliance programs, prepares the Audit
Committee Report for inclusion in our proxy statement, approves
audit and non-audit services provided to us by our independent
auditors and meets with our General Counsel to discuss legal
matters that may have a material impact on our financial
statements or our compliance policies. All members of our Audit
Committee are independent within the meaning of the current and
proposed listing standards of the Nasdaq National Market. Our
Board of Directors has adopted an Audit Committee Charter, which
is attached as Appendix&nbsp;A to this proxy statement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, the Compensation Committee consisted of
Messrs.&nbsp;Kagle, Bourguignon and Schultz. Mr.&nbsp;Tierney
was elected to the Compensation Committee when he became a
director in 2003. The committee met six times during 2002. The
Compensation Committee reviews and approves all compensation
programs applicable to directors and executive officers, the
overall strategy for employee compensation, and goals and
objectives relative to the compensation of the CEO. In addition,
the Compensation Committee reviews the performance of the CEO on
an annual basis and prepares the Compensation Committee Report
for inclusion in our proxy statement. All members of our
Compensation Committee are independent within the meaning of the
current and proposed listing standards of the Nasdaq National
Market. Our Board of Directors has adopted a Compensation
Committee Charter, which is set forth on the corporate
governance section of our investor relations website at
<I>www.shareholder.com/ebay/corp-gov.cfm.</I>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, the Corporate Governance and Nominating
Committee consisted of Messrs.&nbsp;Cook and Schultz and
Ms.&nbsp;Lepore. Mr.&nbsp;Tierney was elected to the Corporate
Governance and Nominating Committee when he became a director in
March 2003. The Nominating Committee was established in December
2001 and met one time during 2002. In December of 2002, the
Nominating Committee charter was modified to expand its
responsibilities and the name of the committee was officially
changed to the Corporate Governance and Nominating Committee. The
</FONT>

<P align="center"><FONT size="2">6
</FONT>

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<DIV align="left">
<FONT size="2">Corporate Governance and Nominating Committee
makes recommendations to the Board as to the appropriate size of
the Board or any Board committee and reviews the qualifications
of candidates for the Board of Directors (including those
proposed by stockholders) and makes recommendations to the Board
of Directors on potential Board members (whether created by
vacancies or as part of the annual election cycle). In addition,
the Corporate Governance and Nominating Committee establishes
procedures for the oversight and evaluation of the Board and
management, considers conflicts of interest involving executive
officers or Board members, and reviews on an annual basis a set
of corporate governance guidelines for the Board. Stockholders
wishing to submit recommendations for our 2004 Annual Meeting
should submit their proposals to the Corporate Governance and
Nominating Committee care of our Corporate Secretary in
accordance with the time limitations, procedures and
requirements described under the heading &#147;May I propose
actions for consideration at next year&#146;s Annual Meeting or
nominate individuals to serve as directors?&#148; in the section
entitled &#147;Questions and Answers about the Proxy Materials
and the Annual Meeting&#148; above. All members of our Corporate
Governance and Nominating Committee are independent within the
meaning of the current and proposed listing standards of the
Nasdaq National Market. Our Board of Directors has adopted a
Corporate Governance and Nominating Committee Charter, which is
set forth on the corporate governance section of our investor
relations website at
<I>www.shareholder.com/ebay/corp-gov.cfm.</I>
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2002, each Board member attended at least
75% of the aggregate of all of our Board meetings and committee
meetings for committees on which such director served.
</FONT>

<P align="left">
<B><FONT size="2">COMPENSATION OF DIRECTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002 and prior years, our directors received
no cash compensation for their services as directors, although
they were reimbursed for their reasonable expenses for attending
Board and Board committee meetings. Members of the Board who are
not employees of eBay, or any parent, subsidiary or affiliate of
eBay, are eligible to participate in the 1998 Directors Stock
Option Plan, also referred to as the Directors Plan. Option
grants under the Directors Plan are automatic and
non-discretionary, and the exercise price of the options must be
100% of the fair market value of the common stock on the date of
grant. From the time of our initial public offering through
December&nbsp;2002, each eligible director was initially granted
an option to purchase 180,000&nbsp;shares on the date elected to
the Board of Directors, and was granted an option to purchase an
additional 30,000&nbsp;shares at the time of each subsequent
annual meeting if he or she had served continuously as a member
of the Board since the date elected. Accordingly, on
June&nbsp;5, 2002, the date of our 2002 Annual Meeting, each
eligible director received a grant of options to purchase
30,000&nbsp;shares with an exercise price equal to the closing
price of our common stock on that date. All options granted
under the Directors Plan vest as to 25% of the shares on the
first anniversary of the date of grant and as to 1/48 of the
shares each month thereafter, provided the optionee continues as
a director or consultant of eBay.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December&nbsp;2002, the Compensation Committee
and the Board reviewed and revised the director compensation
structure to reduce the equity-based compensation for both new
and existing directors and to add a cash compensation component.
Beginning in 2003, non-employee directors will be paid a
retainer of $50,000 per year, the chairman of the Audit
Committee will receive an additional $10,000 per year, and all
other committee chairs will receive an additional $5,000 per
year. Each non-employee director will also receive meeting fees
of $2,000 per Board meeting and $1,000 per committee meeting.
The Board also amended the Directors Plan to eliminate the
initial 180,000&nbsp;share option grant thereunder and reduce
the number of options granted to non-employee directors at each
Annual Meeting from 30,000 to 15,000&nbsp;shares. Subject to the
approval by the stockholders of the Deferred Stock Unit Plan (or
DSU Plan) at our upcoming Annual Meeting, new non-employee
directors elected on or after December&nbsp;31, 2002 will
receive deferred stock units, or DSUs, with an initial value of
$150,000. DSUs represent an unfunded, unsecured right to receive
shares of eBay common stock (or the equivalent value thereof in
cash or property), and the value of DSUs varies directly with
the price of eBay&#146;s common stock. Each DSU award granted to
a non-employee director upon election to the Board will vest as
to 25% of the DSUs on the first anniversary of the date of grant
and as to 1/48 of the DSUs each month thereafter, provided the
director continues as a director or consultant of eBay. The DSU
Plan is described more fully under
&#147;Proposal&nbsp;3&nbsp;&#151; Approval of 2003 Deferred
Stock Unit Plan&#148; below.
</FONT>

<P align="center"><FONT size="2">7
</FONT>

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<P align="left">
<B><FONT size="2">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information known to us with respect to beneficial ownership of
our common stock as of April&nbsp;1, 2003 by (i)&nbsp;each
stockholder known to us to be the beneficial owner of more than
5% of our common stock, (ii)&nbsp;each director and nominee for
director, (iii)&nbsp;each of the executive officers named in the
Summary Compensation Table set forth under &#147;Executive
Compensation&nbsp;&#151; Compensation of Executive
Officers&#148; below and (iv)&nbsp;all executive officers and
directors as a group.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares Beneficially</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Owned(1)</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Beneficial Owner</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pierre M. Omidyar(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,857,942</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey S. Skoll(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,425,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Janus Capital Management LLC(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,750,221</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Margaret C. Whitman(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,233,426</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Maynard G. Webb, Jr.(6)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">563,268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey D. Jordan(7)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">426,851</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Matthew J. Bannick(8)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">239,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">William C. Cobb(9)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,062</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Philippe Bourguignon(10)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Scott D. Cook(11)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">839,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert C. Kagle(12)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,043,543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dawn G. Lepore(13)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">161,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Howard D. Schultz(14)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,292</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thomas J. Tierney(15)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All directors and executive officers as a group
    (14 persons)(16)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,568,819</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="45%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="5%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Less than one percent.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">This table is based upon information supplied by
    officers, directors and principal stockholders and
    Schedules&nbsp;13D and 13G filed with the Securities and
    Exchange Commission. Beneficial ownership is determined in
    accordance with the rules of the Securities and Exchange
    Commission and generally includes voting or investment power
    with respect to securities. Unless otherwise indicated below,
    the persons and entities named in the table have sole voting and
    sole investment power with respect to all shares beneficially
    owned, subject to community property laws where applicable.
    Shares of our common stock subject to options that are currently
    exercisable or exercisable within 60&nbsp;days of April&nbsp;1,
    2003 are deemed to be outstanding for the purpose of computing
    the percentage ownership of the person holding those options,
    but are not treated as outstanding for the purpose of computing
    the percentage ownership of any other person. The percentage of
    beneficial ownership is based on 315,779,028 shares of our
    common stock outstanding as of April&nbsp;1, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Omidyar is our Founder and Chairman of
    the Board. Includes 383,800&nbsp;shares held by his spouse as to
    which he disclaims beneficial ownership. The address for
    Mr.&nbsp;Omidyar is 2145&nbsp;Hamilton Avenue, San Jose,
    California 95125.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)</FONT></TD>
    <TD align="left">
    <FONT size="2">The address for Mr.&nbsp;Skoll is
    c/o&nbsp;Capricorn Management, LLC, 2005&nbsp;Hamilton Avenue,
    Suite&nbsp;260, San Jose, California 95125.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)</FONT></TD>
    <TD align="left">
    <FONT size="2">Janus Capital Management LLC, or Janus Capital,
    has an indirect 100% ownership stake in Bay Isle Financial LLC,
    or Bay Isle, and an indirect 50.1% ownership stake in Enhanced
    Investment Technologies LLC, or INTECH. Due to the above
    ownership structure, holdings for Janus Capital, Bay Isle and
    INTECH are aggregated for beneficial ownership disclosure
    purposes. Janus Capital, Bay Isle and INTECH are registered
    investment advisers, each furnishing investment advice to
    various investment companies registered under Section&nbsp;8 of
    the Investment Company Act of 1940 and to individual and
    institutional clients (collectively, the &#147;Managed
    Portfolios&#148;). Neither Janus Capital, Bay Isle nor INTECH
    has the right to receive any dividends from, or the proceeds
    from the sale of, the securities held in the Managed Portfolios
    and disclaims any ownership associated with such rights. Janus
    Capital has sole voting and dispositive power over
    15,320,121&nbsp;shares of common stock and shared voting and
    dispositive power over 430,100 shares of common stock. The
    address for Janus Capital Management LLC is 100&nbsp;Fillmore
    Street, Denver, Colorado 80206-4923.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)</FONT></TD>
    <TD align="left">
    <FONT size="2">Ms.&nbsp;Whitman is our President and Chief
    Executive Officer. Includes 6,425,262&nbsp;shares held by the
    Griffith R. Harsh,&nbsp;IV&nbsp;&#38; Margaret C. Whitman TTEES
    of Sweetwater Trust U/A/D 10/15/99. In addition, it includes
    (a)&nbsp;1,198&nbsp;shares held by Griffith Rutherford
    Harsh&nbsp;IV Custodian Griffith Rutherford Harsh&nbsp;V UTMA
    California as to which Ms.&nbsp;Whitman&#146;s spouse is
    custodian for the trust and as to which Ms.&nbsp;Whitman
    disclaims beneficial ownership and (b)&nbsp;1,198 shares held by
    Griffith
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">8
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">Rutherford Harsh&nbsp;IV Custodian William
    Whitman Harsh UTMA California as to which
    Ms.&nbsp;Whitman&#146;s spouse is custodian for the trust and as
    to which Ms.&nbsp;Whitman disclaims beneficial ownership.
    Includes 328,125 shares Ms.&nbsp;Whitman has the right to
    acquire pursuant to outstanding options exercisable within
    60&nbsp;days. The address for Ms.&nbsp;Whitman is
    2145&nbsp;Hamilton Avenue, San Jose, California 95125.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Webb is our Chief Operating Officer.
    Represents the 563,268&nbsp;shares Mr.&nbsp;Webb has the right
    to acquire pursuant to outstanding options exercisable within
    60&nbsp;days. The address for Mr.&nbsp;Webb is
    2145&nbsp;Hamilton Avenue, San Jose, California 95125.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(7)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Jordan is our Senior Vice President and
    General Manager, U.S.&nbsp;Business. Represents the
    426,851&nbsp;shares Mr.&nbsp;Jordan has the right to acquire
    pursuant to outstanding options exercisable within 60&nbsp;days.
    The address for Mr.&nbsp;Jordan is 2145&nbsp;Hamilton Avenue,
    San Jose, California 95125.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(8)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Bannick is our Senior Vice President,
    Global Online Payments. Represents the 239,166&nbsp;shares
    Mr.&nbsp;Bannick has the right to acquire pursuant to
    outstanding options exercisable within 60&nbsp;days. The address
    for Mr.&nbsp;Bannick is 2145&nbsp;Hamilton Avenue, San Jose,
    California 95125.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(9)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Cobb is our Senior Vice President and
    General Manager, International. Represents the
    104,062&nbsp;shares Mr.&nbsp;Cobb has the right to acquire
    pursuant to outstanding options exercisable within 60&nbsp;days.
    The address for Mr.&nbsp;Cobb is 2145&nbsp;Hamilton Avenue, San
    Jose, California 95125.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(10)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents the 191,250&nbsp;shares
    Mr.&nbsp;Bourguignon has the right to acquire pursuant to
    outstanding options exercisable within 60&nbsp;days. The address
    for Mr.&nbsp;Bourguignon is 33&nbsp;rue Censier,
    75019&nbsp;Paris, France.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(11)</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 717,500 shares Mr.&nbsp;Cook has the
    right to acquire pursuant to outstanding options exercisable
    within 60&nbsp;days. The address for Mr.&nbsp;Cook is
    c/o&nbsp;Intuit, Inc., 2535&nbsp;Garcia Avenue, Mountain View,
    California 94043.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(12)</FONT></TD>
    <TD align="left">
    <FONT size="2">The shares are held by Robert&nbsp;&#38; Joanne
    Kagle Trust UAD 4/4/96, Robert Kagle and Joanne Kagle, TTEES.
    Includes 37,500&nbsp;shares Mr.&nbsp;Kagle has the right to
    acquire pursuant to outstanding options exercisable within
    60&nbsp;days. The address for Mr.&nbsp;Kagle is
    c/o&nbsp;Benchmark Capital Management Co., L.L.C.,
    2480&nbsp;Sand Hill Road, Suite&nbsp;200, Menlo Park, California
    94025.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(13)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents the 161,250 shares Ms.&nbsp;Lepore has
    the right to acquire pursuant to outstanding options exercisable
    within 60&nbsp;days. The address for Ms.&nbsp;Lepore is
    c/o&nbsp;The Charles Schwab Corporation, 101&nbsp;Montgomery
    Street, M.S., 120-30-305, San Francisco, California 94104.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(14)</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 37,500&nbsp;shares Mr.&nbsp;Schultz has
    the right to acquire pursuant to outstanding options exercisable
    within 60&nbsp;days. The address for Mr.&nbsp;Schultz is
    c/o&nbsp;Starbucks Corporation, 2401&nbsp;Utah Ave. South,
    8th&nbsp;Floor, Seattle, Washington 98134.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(15)</FONT></TD>
    <TD align="left">
    <FONT size="2">The address for Mr.&nbsp;Tierney is c/o&nbsp;The
    Bridgespan Group, 131&nbsp;Clarendon Street, 7th&nbsp;Floor,
    Boston, MA 02116.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(16)</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 3,474,588&nbsp;shares subject to options
    exercisable within 60&nbsp;days.
    </FONT></TD>
</TR>

</TABLE>

<!-- link1 "Proposal 1" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center">
<B><FONT size="2">PROPOSAL 1</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "Election of Directors" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center">
<B><FONT size="2">ELECTION OF DIRECTORS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">eBay&#146;s Certificate of Incorporation and
Bylaws, as amended to date, provide for the Board of Directors
to be divided into three classes, with each class having a
three-year term. The first class currently consists of two
directors, the second class currently consists of three
directors and the third class currently consists of three
directors. The term of office for the first class expires at our
2005 Annual Meeting, the term of office for the second class
expires at our upcoming Annual Meeting and the term of office
for the third class expires at our 2004 Annual Meeting. A
director elected to fill a vacancy (including a vacancy created
by an increase in the size of the Board of Directors) will serve
for the remainder of the term of the class of directors in which
the vacancy occurred and until his or her successor is elected
and qualified.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Board of Directors is presently composed of
eight members, six of whom are currently independent directors
within the meaning of the current and proposed listing standards
of the Nasdaq National Market. There are three directors in the
class whose term of office expires in 2003, all of whom are
currently members of the Board of Directors. One of these
directors, Howard D. Schultz, an independent director, has
announced that he will leave the Board when his term expires at
the Annual Meeting. The two nominees for election at the Annual
Meeting were previously elected by the stockholders. If elected
at the Annual Meeting, each of the nominees would serve until our
</FONT>

<P align="center"><FONT size="2">9
</FONT>

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<DIV align="left">
<FONT size="2">2006 Annual Meeting and until his or her
successor is elected and has qualified, or until his or her
earlier death, resignation or removal. The class would
thereafter have two members.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Directors are elected by a plurality (excess of
votes cast over opposing nominees) of the votes present in
person or represented by proxy and entitled to vote at the
meeting. Shares represented by signed proxies will be voted, if
authority to do so is not withheld, for the election of the two
nominees named below. If either nominee unexpectedly is
unavailable for election, these shares will be voted for the
election of a substitute nominee proposed by our Corporate
Governance and Nominating Committee. Each person nominated for
election has agreed to serve if elected. Management has no
reason to believe that either nominee will be unable to serve.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Set forth below is biographical information for
the nominees as well as for each director whose term of office
will continue after the Annual Meeting.
</FONT>

<P align="left">
<B><FONT size="2">NOMINEES FOR ELECTION FOR A THREE-YEAR TERM
EXPIRING AT OUR 2006 ANNUAL MEETING</FONT></B>

<P align="left">
<B><FONT size="2">Dawn G. Lepore</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Dawn G. Lepore, age 49, has served as a director
of eBay since December 1999. Ms.&nbsp;Lepore is Vice Chairman of
Technology, Operations, and Administration and a member of the
Executive Management Committee of the Charles Schwab Corporation
where she has served for over 19&nbsp;years in various
capacities. From October 1993 to December 2001, Ms.&nbsp;Lepore
served as Chief Information Officer at Schwab. Prior to that she
served as Senior Vice President of Information Technology at
Schwab from May 1993 to October 1993 where she was responsible
for the development of a wide range of systems to support
Schwab&#146;s growing product offerings and client base. She
also led a strategic initiative for redesigning Schwab&#146;s
entire technology platform. Ms.&nbsp;Lepore also serves on the
board of directors of Wal-Mart Stores, Inc. and on the Board of
Trustees of Smith College. Ms.&nbsp;Lepore holds a B.A. degree
from Smith College in Music.
</FONT>

<P align="left">
<B><FONT size="2">Pierre M. Omidyar</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pierre M. Omidyar, age&nbsp;35, founded eBay as a
sole proprietorship in September 1995. He has been a director
and Chairman of the Board since eBay&#146;s incorporation in May
1996 and also served as its Chief Executive Officer, Chief
Financial Officer and President from inception to February 1998,
November 1997 and August 1996, respectively. Prior to founding
eBay, Mr.&nbsp;Omidyar was a developer services engineer at
General Magic, a mobile communication platform company, from
December 1994 to July 1996. Mr.&nbsp;Omidyar co-founded Ink
Development Corp. (later renamed eShop) in May 1991 and served
as a software engineer there from May 1991 to September 1994.
Prior to co-founding Ink, Mr.&nbsp;Omidyar was a developer for
Claris, a subsidiary of Apple Computer, and for other
Macintosh-oriented software development companies.
Mr.&nbsp;Omidyar also serves on the Board of Trustees of Tufts
University, The Santa Fe Institute and The Omidyar Foundation.
Mr.&nbsp;Omidyar holds a B.S. degree in Computer Science from
Tufts University.
</FONT>

<P align="center">
<B><FONT size="2">THE BOARD OF DIRECTORS RECOMMENDS</FONT></B>

<DIV align="center">
<B><FONT size="2">A VOTE IN FAVOR OF EACH NAMED
NOMINEE.</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">DIRECTORS CONTINUING IN OFFICE UNTIL OUR 2004
ANNUAL MEETING</FONT></B>

<P align="left">
<B><FONT size="2">Philippe Bourguignon</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Philippe Bourguignon, age 55, has served as a
director of eBay since December 1999. From April 1997 to January
2003, Mr.&nbsp;Bourguignon served as Chairman of the Board of
Club Mediterranee S.A. Prior to his appointment at Club
Mediterranee S.A., Mr.&nbsp;Bourguignon was Chief Executive
Officer of Euro Disney S.A., the parent company of Disneyland
Paris, since 1993, and Executive Vice President of The Walt
Disney Company (Europe) S.A., since October 1996.
Mr.&nbsp;Bourguignon was named President of Euro Disney in 1992,
a post he held
</FONT>

<P align="center"><FONT size="2">10
</FONT>

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<DIV align="left">
<FONT size="2">through April 1993. He joined The Walt Disney
Company in 1988 as head of real estate development.
Mr.&nbsp;Bourguignon holds a Masters Degree in Economics at the
University of Aix-en-Provence and holds a post-graduate diploma
from the Institut d&#146;Administration des Enterprises (IAE) in
Paris.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Thomas J. Tierney</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Thomas J. Tierney, age&nbsp;49, has served as a
director of eBay since March 2003. Mr.&nbsp;Tierney is the
founder of The Bridgespan Group, a non-profit business
consulting firm, and has been its Chairman of the Board since
late 1999. Prior to founding Bridgespan, Mr.&nbsp;Tierney served
as Chief Executive Officer of Bain&nbsp;&#38; Company, a
consulting firm, from June 1992 to January 2000.
Mr.&nbsp;Tierney holds a B.A. degree in Economics from the
University of California at Davis and an M.B.A. degree with
distinction from the Harvard Business School. Mr.&nbsp;Tierney
is the co-author of a book about organization and strategy
called <I>Aligning the Stars</I>.
</FONT>

<P align="left">
<B><FONT size="2">Margaret C. Whitman</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Margaret C. Whitman, age&nbsp;46, serves eBay as
President and Chief Executive Officer. She has served in that
capacity since February 1998 and as a director since March 1998.
From January 1997 to February 1998, she was General Manager of
the Preschool Division of Hasbro Inc. From February 1995 to
December 1996, Ms.&nbsp;Whitman was employed by FTD, Inc., a
floral products company, most recently as President, Chief
Executive Officer and a director. From October 1992 to February
1995, Ms.&nbsp;Whitman was employed by The Stride Rite
Corporation in various capacities, including President, Stride
Rite Children&#146;s Group and Executive Vice President, Product
Development, Marketing&nbsp;&#38; Merchandising, Keds Division.
From May 1989 to October 1992, Ms.&nbsp;Whitman was employed by
The Walt Disney Company, most recently as Senior Vice President,
Marketing, Disney Consumer Products. Before joining Disney,
Ms.&nbsp;Whitman was at Bain &#38; Co., a consulting firm, most
recently as a Vice President. Ms.&nbsp;Whitman also serves on
the board of directors of The Procter &#38; Gamble Company and
is a Member of the Board of Trustees of Princeton University.
Ms.&nbsp;Whitman holds an A.B. degree in Economics from
Princeton University and an M.B.A. degree from the Harvard
Business School.
</FONT>

<P align="left">
<B><FONT size="2">DIRECTORS CONTINUING IN OFFICE UNTIL OUR 2005
ANNUAL MEETING</FONT></B>

<P align="left">
<B><FONT size="2">Scott D. Cook</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Scott D. Cook, age&nbsp;50, has served as a
director of eBay since June 1998. Mr.&nbsp;Cook is the founder
of Intuit Inc., a financial software developer. Mr.&nbsp;Cook
has been a director of Intuit since March 1984 and is currently
Chairman of the Executive Committee of the Board of Intuit. From
March 1993 to July 1998, Mr.&nbsp;Cook served as Chairman of the
Board of Intuit. From March 1984 to April 1994, Mr.&nbsp;Cook
served as President and Chief Executive Officer of Intuit.
Mr.&nbsp;Cook also serves on the board of directors of The
Procter &#38; Gamble Company. Mr.&nbsp;Cook holds a B.A. degree
in Economics and Mathematics from the University of Southern
California and an M.B.A. degree from the Harvard Business School.
</FONT>

<P align="left">
<B><FONT size="2">Robert C. Kagle</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Robert C. Kagle, age&nbsp;47, has served as a
director of eBay since June 1997. Mr.&nbsp;Kagle has been a
Member of Benchmark Capital Management Co., L.L.C.,, a venture
capital firm, and the General Partner of Benchmark Capital
Partners, L.P. and Benchmark Founders&#146; Fund, L.P., since
its founding in May 1995. Mr.&nbsp;Kagle also has been a General
Partner of Technology Venture Investors since January 1984.
Mr.&nbsp;Kagle also serves on the board of directors of Ariba,
Inc. and E-LOAN, Inc. Mr.&nbsp;Kagle holds a B.S. degree in
Electrical and Mechanical Engineering from the General Motors
Institute (renamed Kettering University in January 1998) and an
M.B.A. degree from the Stanford Graduate School of Business.
</FONT>

<P align="center"><FONT size="2">11
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Proposal 2" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center">
<B><FONT size="2">PROPOSAL 2</FONT></B>

<DIV>&nbsp;</DIV>

<!-- link1 "Approval of Amendment to 2001 Equity Incentive Plan" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="center">
<B><FONT size="2">APPROVAL OF AMENDMENT TO 2001 EQUITY INCENTIVE
PLAN</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are asking you to approve an amendment to our
2001 Equity Incentive Plan, which we refer to as the 2001 Plan.
The purpose of the amendment is to increase the number of shares
of the common stock we may issue under the 2001 Plan by
14,000,000&nbsp;shares from 25,000,000 to 39,000,000&nbsp;shares.
</FONT>

<P align="center">
<B><FONT size="2">THE BOARD OF DIRECTORS RECOMMENDS</FONT></B>

<DIV align="center">
<B><FONT size="2">A VOTE IN FAVOR OF PROPOSAL 2.</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of the 2001 Plan is set forth below.
The discussion below is qualified in its entirety by reference
to the 2001 Plan, a copy of which, as amended, is attached as
Appendix&nbsp;B to this proxy statement.
</FONT>

<P align="left">
<B><FONT size="2">GENERAL</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2001 Plan provides for the grant of incentive
stock options and nonstatutory stock options. Incentive stock
options granted under the 2001 Plan are intended to qualify as
&#147;incentive stock options&#148; within the meaning of
Section&nbsp;422 of the Internal Revenue Code of 1986, as
amended, or the Code. Nonstatutory stock options granted under
the 2001 Plan are not intended to qualify as incentive stock
options under the Code.
</FONT>

<P align="left">
<B><FONT size="2">PURPOSE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purpose of the 2001 Plan is to provide a
means by which eligible employees, directors and consultants of
eBay and its affiliates may be given an opportunity to purchase
our common stock. We believe that the 2001 Plan assists us in
retaining the services of such persons, in securing and
retaining the services of persons capable of filling such
positions and in providing incentives for such persons to exert
maximum efforts for our success.
</FONT>

<P align="left">
<B><FONT size="2">ADMINISTRATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board administers the 2001 Plan. Subject to
the provisions of the 2001 Plan, it may construe and interpret
the 2001 Plan and the options granted under it, and to
establish, amend and revoke rules and regulations for its
administration. The Board determines the persons to whom and the
dates on which options will be granted. Subject to the
provisions of the 2001 Plan, it also may determine the number of
shares of our common stock to be subject to each option, the
exercise and vesting schedule, the exercise price, the type of
consideration and other terms of the option. Pursuant to its
authority to delegate administration of the 2001 Plan to a
committee of one or more members of the Board of Directors, the
Board of Directors has delegated such administration to its
Compensation Committee. Therefore, as used herein, the
&#147;Board&#148; refers to the Compensation Committee as well
as to the Board of Directors itself.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The regulations under Section&nbsp;162(m) of the
Code require that the directors who serve as members of the
Compensation Committee must be &#147;outside directors.&#148;
The 2001 Plan provides that, in the Board&#146;s discretion,
directors serving on the Compensation Committee may be
&#147;outside directors&#148; within the meaning of
Section&nbsp;162(m). This limitation would exclude from such
committee directors who are: (i)&nbsp;current employees of ours
or of an affiliate of ours; (ii)&nbsp;former employees of ours
or an affiliate of ours receiving compensation for past services
(other than benefits under a tax-qualified pension plan);
(iii)&nbsp;current and former officers of ours or an affiliate
of ours; (iv) directors currently receiving direct or indirect
remuneration from us or an affiliate of ours in any capacity
(other than as a director); and (v)&nbsp;any other person who is
otherwise considered an &#147;outside director&#148; for
purposes of Section&nbsp;162(m). The definition of an
&#147;outside director&#148; under Section&nbsp;162(m) is
generally narrower than the definition of a &#147;non-employee
director&#148; under Rule&nbsp;16b-3 of the Securities Exchange
Act of 1934, as amended.
</FONT>

<P align="center"><FONT size="2">12
</FONT>

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<P align="left">
<B><FONT size="2">ELIGIBILITY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We intended the 2001 Plan to benefit all of our
employees and consultants and the employees, directors and
consultants of our affiliates. As such, all are eligible to
participate in the 2001 Plan. However, nonemployee directors are
eligible only for grants where the essential terms have been set
forth in the 2001 Plan and been approved by our stockholders,
and the 2001 Plan currently does not provide for such
nondiscretionary grants. In addition, the Board may grant
incentive stock options under the 2001 Plan only to our
employees and employees of our affiliates. As of April&nbsp;30,
2003, eBay Inc. and its consolidated subsidiaries employed
approximately 4,400 persons, all of whom are eligible to receive
grants under the 2001 Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board may not grant an incentive stock option
under the 2001 Plan to any person who, at the time of the grant,
owns (or is deemed to own) stock possessing more than 10% of the
total combined voting power of us or any of our affiliates,
unless the exercise price is at least 110% of the fair market
value of the common stock subject to the option on the date of
grant and the term of the option does not exceed five years from
the date of grant. In addition, the aggregate fair market value,
determined at the time of grant, of the shares of our common
stock with respect to which incentive stock options are
exercisable for the first time by the optionholder during any
calendar year (under the 2001 Plan and any other plan of ours or
our affiliates) may not exceed $100,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No employee may be granted options under the 2001
Plan covering more than 1,000,000&nbsp;shares of our common
stock during any calendar year. This limitation is referred to
in this proxy statement as the Section&nbsp;162(m) Limitation.
</FONT>

<P align="left">
<B><FONT size="2">STOCK SUBJECT TO THE 2001 PLAN</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have reserved an aggregate of
39,000,000&nbsp;shares of our common stock for issuance under
the 2001 Plan. As of April&nbsp;1, 2003, there were
19,390,370&nbsp;shares to be issued upon the exercise of
outstanding options under the 2001 Plan and only
4,126,411&nbsp;shares were available for future grant under the
2001 Plan from the 25,000,000&nbsp;shares previously approved by
our stockholders. If options granted under the 2001 Plan expire
or otherwise terminate without being exercised, the shares of
our common stock not acquired pursuant to such options again
become available for issuance under the 2001 Plan.
</FONT>

<P align="left">
<B><FONT size="2">TERMS OF OPTIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Exercise Price; Payment.
</FONT></I><FONT size="2">The exercise price of incentive stock
options may not be less than 100% of the fair market value of
the common stock subject to the option on the date of the grant
and, in some cases (see &#147;Eligibility&#148; above), may not
be less than 110% of such fair market value. The exercise price
of nonstatutory options generally may not be less than 100% of
the fair market value of the common stock on the date of grant.
However, the Board may establish an exercise price for a
nonstatutory stock option with up to a 15% discount if the
discount is expressly granted in lieu of a reasonable amount of
salary or a cash bonus. If options were granted with exercise
prices below fair market value, deductions for compensation
attributable to the exercise of such options could be limited by
Section&nbsp;162(m) of the Code. See &#147;Federal Income Tax
Information&#148; below. As of April&nbsp;30, 2003, the closing
price of our common stock as reported on the Nasdaq National
Market System was $92.91 per share. Optionholders (other than
those subject to the SEC reporting requirements of
Section&nbsp;16 of the Securities Act of 1934, as amended) may
pay the exercise price either in cash or, if allowed by the
Board, by delivery of other shares of our common stock or in any
other form of legal consideration acceptable to the Board.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Option Exercise.
</FONT></I><FONT size="2">Options granted under the 2001 Plan
may become exercisable in cumulative increments, or vest, as
determined by the Board, and the Board may accelerate the time
during which an option may vest or be exercised. In addition,
options may permit exercise prior to vesting, but in such event
the optionholder will be required to enter into an early
exercise stock purchase agreement that allows us to repurchase
unvested shares, generally at the optionholder&#146;s exercise
price, should the optionholder&#146;s service terminate before
vesting. To the extent provided by the terms of an option, an
optionholder may satisfy any tax withholding obligation relating
to the exercise of the option by a cash payment upon exercise,
by authorizing us to withhold a portion of the common stock
otherwise issuable to the optionholder, by delivering
already-owned shares of our common stock (or providing
assurances of ownership and receiving shares on a net basis) or
by a combination of these means.
</FONT>

<P align="center"><FONT size="2">13
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Term. </FONT></I><FONT size="2">The term of
options will be 10&nbsp;years or less, and options generally
will terminate three months after termination of the
optionholder&#146;s service. If such termination is due to the
optionholder&#146;s disability as determined under the 2001
Plan, the option generally may be exercised (to the extent the
option was exercisable at the time of the termination of
service) at any time within 12&nbsp;months of such termination.
If the optionholder dies during the option term, or within three
months after termination of service other than for cause or
because of disability, the option generally may be exercised (to
the extent the option was exercisable at the time of the
optionholder&#146;s death) within 18&nbsp;months of the
optionholder&#146;s death. An optionholder may designate a
beneficiary who may exercise the option following the
optionholder&#146;s death.
</FONT>

<P align="left">
<B><FONT size="2">RESTRICTIONS ON TRANSFER</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The optionholder may not transfer an incentive
stock option otherwise than by will or by the laws of descent
and distribution. The Board may grant nonstatutory stock options
that are transferable to the extent provided in the stock option
agreement.
</FONT>

<P align="left">
<B><FONT size="2">ADJUSTMENT PROVISIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Transactions not involving our receipt of
consideration, such as a merger, consolidation, reorganization,
stock dividend, or stock split, may change the class and number
of shares of our common stock subject to the 2001 Plan and to
outstanding options. In that event, the Board will appropriately
adjust the 2001 Plan as to the class and the maximum number of
shares of our common stock subject to the 2001 Plan and to the
Section&nbsp;162(m) Limitation, and will adjust outstanding
options as to the class, number of shares and price per share of
our common stock.
</FONT>

<P align="left">
<B><FONT size="2">EFFECT OF CERTAIN CORPORATE EVENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event of our dissolution or liquidation,
outstanding options will terminate immediately prior to the date
of such event. However, outstanding options do not automatically
terminate in the event of a change in control. A &#147;change in
control&#148; means a sale, lease or other disposition of all or
substantially all of our assets, a merger or consolidation in
which we are not the surviving corporation, or a reverse merger
in which we are the surviving corporation but the shares of our
stock outstanding immediately preceding the merger are converted
by virtue of the merger into other property. In the event of a
change in control, any surviving corporation or acquiring
corporation may assume or continue outstanding options or may
substitute similar options. If it refuses to do so, then with
respect to options held by optionholders whose service has not
terminated, the vesting of such options (and, if applicable, the
time during which such options may be exercised) will be
accelerated in full. The unexercised portion of all outstanding
options will terminate upon the change in control. The
acceleration of an option in the event of a change in control
may be viewed as an anti-takeover provision, which may have the
effect of discouraging a proposal to acquire or otherwise obtain
control of us.
</FONT>

<P align="left">
<B><FONT size="2">DURATION, AMENDMENT, REPRICING AND
TERMINATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board may amend, suspend or terminate the
2001 Plan at any time or from time to time. Stockholders
initially approved the 2001 Plan at our 2001 Annual Meeting.
Stockholder approval of any amendment to the 2001 Plan must be
sought if necessary under applicable laws or regulations.
Stockholder approval also must be sought for any material
amendment to the 2001 Plan. However, the Board may submit any
amendment under the 2001 Plan for stockholder approval at its
discretion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, the Board amended the plan to provide
that, except for adjustments that result from events that affect
our capitalization, prior stockholder approval is required
before the Board may cancel, replace with a new option, or
reduce the exercise price of, any option it has already granted
under the 2001 Plan. The 2001 Plan terminates on March&nbsp;21,
2011, unless sooner terminated.
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<P align="left">
<B><FONT size="2">FEDERAL INCOME TAX INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Options granted under the 2001 Plan to persons
subject to United States taxation generally have the following
federal income tax consequences:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Incentive Stock
Options.</FONT></I><FONT size="2"> Incentive stock options under
the 2001 Plan are intended to be eligible for the favorable
federal income tax treatment accorded &#147;incentive stock
options&#148; under the Code. To date, no incentive stock
options have been granted under the 2001 Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There generally are no federal income tax
consequences to the optionholder or to us by reason of the grant
or exercise of an incentive stock option. However, the exercise
of an incentive stock option may increase the
optionholder&#146;s alternative minimum tax liability, if any.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If an optionholder holds stock acquired through
exercise of an incentive stock option for at least two years
from the date on which the option is granted and at least one
year from the date on which the shares are transferred to the
optionholder upon exercise of the option, any gain or loss on a
disposition of such stock will be a long-term capital gain or
loss if the optionholder held the stock for more than one year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, if the optionholder disposes of the
stock before the expiration of either of these holding periods
(a &#147;disqualifying disposition&#148;), then at the time of
disposition the optionholder will realize taxable ordinary
income equal to the lesser of (i)&nbsp;the excess of the
stock&#146;s fair market value on the date of exercise over the
exercise price, or (ii)&nbsp;the optionholder&#146;s actual
gain, if any, on the purchase and sale. The optionholder&#146;s
additional gain or any loss upon the disqualifying disposition
will be a capital gain or loss, which will be long-term or
short-term depending on whether the stock was held for more than
one year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To the extent the optionholder recognizes
ordinary income by reason of a disqualifying disposition, we
will generally be entitled (subject to the requirement of
reasonableness, the provisions of Section&nbsp;162(m) of the
Code and the satisfaction of a tax reporting obligation) to a
corresponding business expense deduction in the tax year in
which the disqualifying disposition occurs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Nonstatutory Stock
Options.</FONT></I><FONT size="2"> There are no tax consequences
to the optionholder or to us by reason of the grant of a
nonstatutory stock option. Upon acquisition of the stock, the
optionholder normally will recognize taxable ordinary income
equal to the excess, if any, of the stock&#146;s fair market
value on the acquisition date over the purchase price. However,
to the extent the stock is subject to certain types of vesting
restrictions, the taxable event will be delayed until the
vesting restrictions lapse unless the optionholder elects to be
taxed on receipt of the stock. With respect to employees, we are
generally required to withhold from regular wages or
supplemental wage payments an amount based on the ordinary
income recognized. Subject to the requirement of reasonableness,
the provisions of Section&nbsp;162(m) of the Code and the
satisfaction of a tax reporting obligation, we generally will be
entitled to a business expense deduction equal to the taxable
ordinary income realized by the optionholder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon disposition of our stock, the optionholder
will recognize a capital gain or loss equal to the difference
between the selling price and the sum of the amount paid for
such stock plus any amount recognized as ordinary income upon
acquisition (or vesting) of the stock. Such gain or loss will be
long-term or short-term depending on whether the optionholder
held our stock for more than one year. Slightly different rules
may apply to optionholders who acquire stock subject to certain
repurchase options or who are subject to Section&nbsp;16(b) of
the Exchange Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Capital Gains.</FONT></I><FONT size="2">
Long-term capital gains currently are generally subject to lower
tax rates than ordinary income or short-term capital gains. The
maximum long-term capital gains rate for federal income tax
purposes is currently generally 20% while the maximum ordinary
income rate and short-term capital gains rate is effectively
38.6%. Slightly different rules may apply to participants who
acquire stock subject to our repurchase right.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Potential Limitation on Company
Deductions.</FONT></I><FONT size="2"> Section&nbsp;162(m) of the
Code denies a deduction to any publicly held corporation for
compensation paid to certain &#147;covered employees&#148; in a
taxable year to the extent that compensation to such covered
employee exceeds $1&nbsp;million. It is possible that
compensation attributable to options,
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">when combined with all other types of
compensation received by a covered employee from us, may cause
this limitation to be exceeded in any particular year.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain kinds of compensation, including
qualified &#147;performance-based compensation,&#148; are
disregarded for purposes of the deduction limitation. In
accordance with Treasury regulations issued under
Section&nbsp;162(m), compensation attributable to stock options
will qualify as performance-based compensation if the option is
granted by a compensation committee composed solely of
&#147;outside directors&#148; and either (i)&nbsp;the plan
contains a per-employee limitation on the number of shares for
which such options may be granted during a specified period, the
per-employee limitation is approved by the stockholders, and the
exercise price of the option is no less than the fair market
value of the stock on the date of grant, or (ii)&nbsp;the option
is granted (or exercisable) only upon the achievement (as
certified in writing by the compensation committee) of an
objective performance goal established in writing by the
compensation committee while the outcome is substantially
uncertain, and the option is approved by stockholders.
</FONT>

<P align="left">
<B><FONT size="2">PARTICIPATION IN THE 2001 PLAN</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The grant of stock options under the 2001 Plan to
executive officers, including the executive officers named in
the Summary Compensation Table set forth under &#147;Executive
Compensation&nbsp;&#151; Compensation of Executive
Officers,&#148; is subject to the discretion of the Board.
During 2002, all current executive officers as a group,
including such named executive officers, and all other employees
as a group were granted options to purchase
1,100,000&nbsp;shares at a weighted average exercise price of
$58.05 and 10,816,779&nbsp;shares at a weighted average exercise
price of $58.55, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During this period, options to purchase an
aggregate of 1,437,285&nbsp;shares were cancelled. Since the
2001 Plan&#146;s inception, none of our current directors, with
the exception of Ms.&nbsp;Whitman, has been granted options to
purchase shares under the 2001 Plan. As of December&nbsp;31,
2002, the weighted average exercise price of outstanding options
under the 2001 Plan was $59.28. As of the date hereof, there has
been no determination as to future awards under the 2001 Plan.
Accordingly, future benefits or amounts received are not
determinable.
</FONT>

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</FONT>

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<DIV align="left"><A NAME="006"></A></DIV>

<P align="center">
<B><FONT size="2">PROPOSAL 3</FONT></B>

<DIV>&nbsp;</DIV>

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<DIV align="left"><A NAME="007"></A></DIV>

<DIV align="center">
<B><FONT size="2">APPROVAL OF 2003 DEFERRED STOCK UNIT
PLAN</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are asking you to approve the 2003 Deferred
Stock Unit Plan, or DSU Plan. In March 2003, the Board of
Directors adopted the DSU Plan, subject to stockholder approval.
The DSU Plan was adopted as a result of the Board&#146;s
comprehensive review of the company&#146;s director compensation
structure that began in December 2002, as described under
&#147;Compensation of Directors&#148; above. As a result of that
review, the Board determined to eliminate the initial 180,000
share option grant to new directors and replace it with the
deferred stock unit award described below. The DSU Plan is
intended to retain and motivate directors (and such other
officers or employees as are selected to participate) by
allowing eBay to grant them a proprietary interest in the
company&#146;s success, in the form of deferred stock units, or
DSUs. Each DSU represents an unfunded, unsecured right to
receive one share of eBay common stock (or the equivalent value
thereof in cash or property), and the value of a DSU varies
directly with the price of eBay&#146;s common stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to stockholder approval of the DSU Plan,
new directors (including Mr. Tierney) will receive a DSU award
with an initial value of $150,000 when they are elected to the
Board (or, in the case of Mr.&nbsp;Tierney, on the date of
stockholder approval of the DSU Plan).
</FONT>

<P align="center">
<B><FONT size="2">THE BOARD OF DIRECTORS RECOMMENDS</FONT></B>

<DIV align="center">
<B><FONT size="2">A VOTE IN FAVOR OF PROPOSAL 3.</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of the DSU Plan is set forth below. The
discussion below is qualified in its entirety by reference to
the complete text of the DSU Plan, which is attached as
Appendix&nbsp;C to this proxy statement.
</FONT>

<P align="left">
<B><FONT size="2">PURPOSE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purpose of the DSU Plan is to retain and
motivate our directors and such other officers or employees
(including prospective employees) as are selected to
participate, to compensate them for their contributions to our
long-term growth and profits, and to encourage them to acquire a
proprietary interest in eBay&#146;s success. Awards will be made
to all new directors of the Board and any officer or employee
(including prospective employees) of eBay selected by the Board
or the committee that administers the DSU Plan.
</FONT>

<P align="left">
<B><FONT size="2">ADMINISTRATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Compensation Committee is charged with
administering the DSU Plan. The Compensation Committee may
construe and interpret the DSU Plan, determine the directors and
employees to whom awards may be granted, and make all other
determinations under the DSU Plan. At any time, the Board may
grant Awards under the DSU Plan or administer the DSU Plan.
</FONT>

<P align="left">
<B><FONT size="2">ELIGIBILITY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An award with an initial value of $150,000 will
be made to each new director elected to the Board after
December&nbsp;31, 2002 on the date of his or her election to the
Board (or, if later, the date of stockholder adoption of the DSU
Plan). Awards may also be made to officers and employees
(including prospective employees), at the Compensation
Committee&#146;s discretion. As of the date of this proxy,
Mr.&nbsp;Tierney, a new director elected in March 2003, will
receive an award upon approval of the DSU Plan by the
stockholders. If the DSU Plan is not approved by the
stockholders, no awards will be granted, and the Board of
Directors will consider what additional compensation to offer to
new directors in lieu of DSU awards. The number of participants
and the amount of their DSU awards during the 2003 fiscal year
will be determined by the number of new directors and, with
regards to other officers and employees, at the discretion of
the Compensation Committee. As of April&nbsp;30, 2003, eBay Inc.
and its consolidated
</FONT>

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</FONT>
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<DIV align="left">
<FONT size="2">subsidiaries employed approximately
4,400&nbsp;persons, all of whom are eligible to receive awards
under the DSU Plan. The Compensation Committee has no current
plans to make DSU awards other than to directors as described
above, but retains the right to make DSU awards to any eligible
director, officer or employee in the future.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">STOCK SUBJECT TO THE PLAN</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The total number of shares of our common stock
that may be reserved for issuance under the DSU Plan is
1,000,000 shares. Those shares of common stock may, in the
discretion of the Compensation Committee, be either authorized
but unissued shares or shares previously issued and reacquired
by eBay. If any DSU award expires, terminates or otherwise
lapses, in whole or in part, any shares of common stock subject
to that award will be returned to the pool of shares available
for issuance under the DSU Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Compensation Committee has the authority (but
is not required) to adjust the number of shares of common stock
issuable under the DSU Plan and to adjust equitably the terms of
any outstanding DSU award (including by payment of cash or
adjustment of the number of shares of common stock covered by
the award, the type of property to which the award is subject
and the exercise or strike price of the award) in such manner as
it deems appropriate to preserve the benefits intended to be
made available to DSU award recipients, for any increase or
decrease in the number of issued shares of common stock
resulting from certain events that affect the capitalization of
eBay.
</FONT>

<P align="left">
<B><FONT size="2">TYPES OF AWARDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The DSU Plan provides for awards in the form of
DSUs and dividend equivalent rights. Each award will be
evidenced by an Award Agreement that will govern the
award&#146;s terms and conditions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A DSU is an unfunded, unsecured right to receive
a share of common stock (or cash, securities, or other property
of equivalent value) at a future date specified by the
Compensation Committee in the recipient&#146;s Award Agreement.
Each DSU award granted to a director upon election to the Board
will vest as to 25% of the DSUs on the first anniversary of the
date of grant and as to 1/48 of the DSUs each month thereafter,
provided the director continues as a director or consultant of
eBay. The Compensation Committee may set the terms of vesting of
other awards in its discretion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A dividend equivalent right represents an
unfunded and unsecured promise to pay to the recipient (in cash,
common stock, or in another form) an amount equal to all or any
portion of the dividends that would be paid on the shares of
common stock covered by an award if such shares had been
delivered pursuant to the award. The conditions and restrictions
for payments in connection with dividend equivalent rights will
be determined by the Compensation Committee, as specified in the
recipient&#146;s Award Agreement. A dividend equivalent right
may be granted alone or in connection with another award.
Because eBay has never paid a cash dividend on its stock and
currently anticipates that it will continue to retain all future
earnings, there are currently no plans to issue dividend
equivalent rights; however, the Compensation Committee may elect
to do so in the future at its discretion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No recipient of any award under the DSU Plan will
have any rights of a stockholder of eBay with respect to shares
of common stock subject to the award until the right to receive
common stock under the award has been exercised and the common
stock has been delivered.
</FONT>

<P align="left">
<B><FONT size="2">EFFECT OF CERTAIN CORPORATE EVENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except to the extent the Compensation Committee
otherwise determines or provides in an Award Agreement, in the
event of a merger, consolidation, mandatory share exchange or
other similar business combination of eBay with or into any
other 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.
</FONT>

<P align="center"><FONT size="2">18
</FONT>

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<P align="left">
<B><FONT size="2">RESTRICTIONS ON TRANSFER</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except to the extent otherwise expressly provided
in an applicable Award Agreement, no award (or any rights and
obligations thereunder) granted to any person under the DSU Plan
may be sold, transferred, pledged or otherwise disposed of or
hedged in any manner other than by will or by the laws of
descent and distribution.
</FONT>

<P align="left">
<B><FONT size="2">DURATION, AMENDMENT AND TERMINATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The DSU Plan will terminate, and no more awards
will be granted, on March&nbsp;17, 2013. The Board has the right
to terminate the DSU Plan at any time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Compensation Committee may, at any time,
suspend, discontinue, revise or amend the DSU Plan in any
respect whatsoever if its action does not materially adversely
affect the rights and obligations of the recipient of a
previously granted award. Shareholder approval of any
suspension, discontinuance, revision or amendment will be
obtained only to the extent necessary to comply with any
applicable law, rule or regulation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The expiration date of each award will be
determined by the Compensation Committee and will be specified
in the recipient&#146;s Award Agreement. Awards under the DSU
Plan may, in the discretion of the Compensation Committee, be
made in substitution for cash or other compensation otherwise
payable to the recipient of the grant.
</FONT>

<P align="left">
<B><FONT size="2">FEDERAL INCOME TAX INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">DSUs granted under the DSU Plan to persons
subject to taxation generally have the following United States
federal income tax consequences:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Grant.</FONT></I><FONT size="2"> There are no
tax consequences to the DSU holder or eBay by reason of the
grant of the DSUs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Delivery.</FONT></I><FONT size="2"> There
generally are no federal income tax consequences to the DSU
holder until the right to receive common stock under the award
has been exercised and the common stock (or cash or property)
has been delivered. Upon delivery, the holder will realize
taxable ordinary income equal to the value of the stock (or cash
or property) awarded at the date of delivery. In the taxable
year in which the DSU holder recognizes ordinary income on the
shares underlying the DSU, eBay is entitled to a tax deduction
equal to the amount of income recognized by the DSU holder.
</FONT>

<P align="center"><FONT size="2">19
</FONT>

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<DIV align="center">
<B><FONT size="2">PROPOSAL 4</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "Ratification of Selection of Independent Auditors" -->
<DIV align="left"><A NAME="009"></A></DIV>

<DIV align="center">
<B><FONT size="2">RATIFICATION OF SELECTION OF INDEPENDENT
AUDITORS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have selected PricewaterhouseCoopers LLP, or
PwC, as our independent auditors for the fiscal year ending
December&nbsp;31, 2003. We are submitting our selection of
independent auditors for ratification by the stockholders at the
Annual Meeting. PwC has audited our historical financial
statements for all annual periods since our incorporation in
1996. We expect that representatives of PwC will be present at
the Annual Meeting, will have an opportunity to make a statement
if they wish and will be available to respond to appropriate
questions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Bylaws do not require that the stockholders
ratify the selection of PwC as our independent auditors.
However, we are submitting the selection of PwC to the
stockholders for ratification as a matter of good corporate
practice. If the stockholders do not ratify the selection, the
Board of Directors and the Audit Committee will reconsider
whether or not to retain PwC. Even if the selection is ratified,
the Board of Directors and the Audit Committee, in their
discretion, may change the appointment at any time during the
year if we determine that such a change would be in the best
interests of eBay and our stockholders.
</FONT>

<P align="left">
<B><FONT size="2">AUDIT AND OTHER PROFESSIONAL FEES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the fiscal years ended December&nbsp;31,
2001 and December&nbsp;31, 2002, fees for services provided by
PwC, as follows (rounded to the nearest $1,000):
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="65%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Audit Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,195,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Audit-Related Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">969,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">747,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All Other Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,685,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,052,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Audit fees&#148; consisted of fees billed
for services rendered for the audit of eBay&#146;s annual
financial statements, review of financial statements included in
eBay&#146;s quarterly reports on Form&nbsp;10-Q, and other
services normally provided in connection with statutory and
regulatory filings. &#147;Audit-related fees&#148; consisted
primarily of fees billed for due diligence review in connection
with acquisitions and divestitures and consultation regarding
financial accounting and reporting matters. &#147;Tax fees&#148;
consisted of fees billed for consulting regarding tax
compliance, tax advice and tax planning. &#147;All other
fees&#148; consisted of fees billed for services in connection
with legal matters and technical accounting research. The Audit
Committee has determined that the rendering of non-audit
services by PwC was compatible with maintaining their
independence.
</FONT>

<P align="left">
<B><FONT size="2">AUDIT COMMITTEE PRE-APPROVAL POLICY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Audit Committee has adopted a policy
requiring the pre-approval of any non-audit engagement of PwC.
In the event that we wish to engage PwC to perform accounting,
technical, diligence or other permitted services not related to
the services performed by PwC as our independent auditor, our
internal finance personnel will prepare a summary of the
proposed engagement, detailing the nature of the engagement, the
reasons why PwC is the preferred provider of such services and
the estimated duration and cost of the engagement. The report
will be provided to our Audit Committee or a designated
committee member, who will evaluate whether the proposed
engagement will interfere with the independence of PwC in the
performance of its auditing services. In the future, we intend
to disclose all approved non-audit engagements in the
appropriate quarterly report on Form&nbsp;10-Q or annual report
on Form&nbsp;10-K.
</FONT>

<P align="center"><FONT size="2">20
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Audit Committee adopted the policy on
pre-approval of non-audit engagements in October 2002 and
approved the following non-audit engagements through
April&nbsp;30, 2003:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the engagement by PayPal of PwC to perform an
    analysis under Statement on Accounting Standards
    (SAS)&nbsp;No.&nbsp;70 <I>(Service Organizations)</I> of
    PayPal&#146;s information technology processes and controls;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the possible engagement of PwC to provide general
    financial advisory services to us in connection with our
    potential involvement in an arbitration proceeding related to
    the interpretation of a contractual provision in a dispute that
    has since been resolved;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the engagement by PayPal of PwC to review
    PayPal&#146;s internal compliance audit under the provisions of
    the USA PATRIOT Act;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the engagement by PayPal Asset Management, Inc.
    of PwC to audit the financial statements and prepare the federal
    tax return of PayPal Money Market Reserve Fund;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the engagement by PayPal of PwC to prepare the
    personal income tax return of an expatriate employee of PayPal
    working in the United Kingdom;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the engagement by PayPal of PwC to provide
    general advisory services in connection with a research and
    development tax credit project;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the engagement of PwC to provide general advisory
    services to us in connection with an evaluation of our internal
    systems, processes and controls under Section&nbsp;404 of the
    Sarbanes-Oxley Act; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the engagement of PwC to provide consultations on
    financial accounting and reporting matters.
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF
DIRECTORS<SUP>(1)</SUP></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We constitute the Audit Committee of the Board of
Directors of eBay. The Audit Committee oversees eBay&#146;s
financial reporting process on behalf of the Board of Directors,
and held seven meetings in 2002. Management has the primary
responsibility for financial statements and the reporting
process, including systems of internal controls. In fulfilling
our oversight responsibilities, we reviewed and discussed the
audited financial statements in the company&#146;s Annual Report
on Form&nbsp;10-K for the year ended December&nbsp;31, 2002 with
management, including a discussion of the quality of the
accounting principles, the reasonableness of significant
judgments and the clarity of disclosures in the financial
statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each member of the Audit Committee meets both the
current and proposed independence requirements of the Nasdaq
Stock Market. In December 2002, the Board of Directors revised
the Audit Committee Charter to reflect new rules and standards
set forth in proposed SEC regulations, as well as proposed
changes to Nasdaq listing standards. A copy of the revised Audit
Committee Charter is attached as Appendix&nbsp;A to this proxy
statement. Any changes in the charter or key practices will be
reflected on the corporate governance section of the
company&#146;s website at
<I>www.shareholder.com/ebay/corp-gov.cfm</I>.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PricewaterhouseCoopers LLP, or PwC, eBay&#146;s
independent auditors, are responsible for expressing an opinion
on the conformity of the company&#146;s audited financial
statements with generally accepted accounting principles. We
have reviewed the audited financial statements with PwC and have
discussed with them their judgments as to the quality of the
company&#146;s accounting principles and the other matters
required to be discussed
</FONT>

<DIV align="left">
<HR size="1" width="25%" align="left" noshade>
</DIV>

<DIV align="left">
<SUP><FONT size="2">(1)</FONT></SUP><FONT size="2">&nbsp;The
material in this report is not &#147;soliciting material,&#148;
is not deemed &#147;filed&#148; with the SEC and is not to be
incorporated by reference in any of our filings under the 1933
Act or the 1934 Act whether made before or after the date hereof
and irrespective of any general incorporation language in any
such filing.
</FONT>
</DIV>

<P align="center"><FONT size="2">21
</FONT>

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<DIV align="left">
<FONT size="2">with the Audit Committee under generally accepted
auditing standards, including the matters required by the
Statement on Auditing Standards No.&nbsp;61 (Communications with
Audit Committees). In addition, we have discussed with PwC their
independence from management and the company, and have received
and reviewed the written disclosure and the letter regarding the
auditors&#146; independence as required by Independence
Standards Board Standard No.&nbsp;1 (Independence Discussions
with Audit Committee). We have also concluded that PwC&#146;s
provision to eBay and its affiliates of the non-audit services
described under &#147;Audit and Other Professional Fees&#148;
above is compatible with PwC&#146;s independence.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We discussed with PwC the overall scope of and
plans for their audit, and met with them, both with and without
management present, to discuss the results of their
examinations, their evaluations of the company&#146;s internal
controls, and the overall quality of the company&#146;s
financial reporting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based our reviews and discussions described
above, we recommended to the Board of Directors, and the Board
approved, the inclusion of the audited financial statements in
the company&#146;s Annual Report on Form&nbsp;10-K for the year
ended December&nbsp;31, 2002. We have also recommended, and the
Board has approved, subject to stockholder approval, the
selection of PwC as our independent auditors for 2003.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="42%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="2">AUDIT COMMITTEE</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Scott D. Cook
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Robert C. Kagle
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Dawn G. Lepore
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">THE BOARD OF DIRECTORS RECOMMENDS</FONT></B>

<DIV align="center">
<B><FONT size="2">A VOTE IN FAVOR OF PROPOSAL 4.</FONT></B>
</DIV>

<P align="center"><FONT size="2">22
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Our Executive Officers" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center">
<B><FONT size="2">OUR EXECUTIVE OFFICERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Executive officers are elected annually by the
Board and serve at the discretion of the Board. Set forth below
is information regarding our executive officers as of
April&nbsp;1, 2003.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="26%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Age</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Position</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Margaret C. Whitman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">President &#38; Chief Executive Officer
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Matthew J. Bannick
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Senior Vice President and General Manager, Global
    Online Payments
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">William C. Cobb
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Senior Vice President and General Manager, eBay
    International
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rajiv Dutta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Senior Vice President and Chief Financial Officer
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Michael R. Jacobson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Senior Vice President, Legal Affairs, General
    Counsel &#38; Secretary
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey D. Jordan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Senior Vice President and General Manager, U.S.
    Business
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Maynard G. Webb, Jr.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Chief Operating Officer
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="45%" align="left" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Margaret C.
Whitman</FONT></I><FONT size="2">&#146;s biography is set forth
under the heading &#147;Proposal 1&nbsp;&#151; Election of
Directors&nbsp;&#151; Directors Continuing in Office Until Our
2004 Annual Meeting.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Matthew J. Bannick
</FONT></I><FONT size="2">serves eBay as Senior Vice President
and General Manager, Global Online Payments and Chief Executive
Officer of PayPal. He has served in those capacities since
October 2002. From December 2000 to October 2002,
Mr.&nbsp;Bannick served as eBay&#146;s Senior Vice President and
General Manager, eBay International. From February 1999 to
December 2000, Mr.&nbsp;Bannick served, at various times, as
eBay&#146;s Vice President, International; Vice President,
Product and Community; and Vice President, Customer Support.
From April 1995 to January 1999, Mr.&nbsp;Bannick was an
executive for Navigation Technologies (NavTech), a provider of
digital map databases. Mr.&nbsp;Bannick was President of NavTech
North America for three years and also served as Senior Vice
President of Marketing and Vice President of Operations. From
June 1992 to August 1992, Mr.&nbsp;Bannick served as a
consultant for McKinsey &#38; Company, in Europe and from June
1993 to April 1995 in the U.S. Mr.&nbsp;Bannick also served as a
U.S. diplomat in Germany during the period of German
unification. Mr.&nbsp;Bannick holds a B.A. in Economics and
International Studies from University of Washington and an M.B.A
degree from the Harvard Business School.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">William C. Cobb
</FONT></I><FONT size="2">serves eBay as Senior Vice President
and General Manager, eBay International. He has served in that
capacity since September 2002. From November 2000 to September
2002, Mr.&nbsp;Cobb served as eBay&#146;s Senior Vice President,
Global Marketing. From February 2000 to June 2000, Mr.&nbsp;Cobb
served as the General Manager of Consumer Sales for Netpliance,
Inc., an Internet-based content company. From July 1997 to
February 2000, Mr.&nbsp;Cobb served as the Senior Vice President
of International Marketing for Tricon Global Restaurants, Inc.
From August 1995 to July 1997, Mr.&nbsp;Cobb served as the
Senior Vice President and Chief Marketing Officer for Pizza Hut,
Inc., a division of Tricon Global Restaurants, Inc. From May
1994 to August 1995, Mr. Cobb served as Vice President of Colas
for the Pepsi-Cola Company, a division of PepsiCo., Inc.
Mr.&nbsp;Cobb holds a B.S. degree in Economics from the
University of Pennsylvania and an M.B.A. degree from
Northwestern University.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Rajiv Dutta </FONT></I><FONT size="2">serves
eBay as Senior Vice President and Chief Financial Officer. He
has served in that capacity since January 2001. From August 1999
to January 2001, Mr.&nbsp;Dutta served as eBay&#146;s Vice
President of Finance and Investor Relations. From July 1998 to
August 1999, Mr.&nbsp;Dutta served as eBay&#146;s Finance
director. From February 1998 to July 1998, Mr.&nbsp;Dutta served
as the World Wide Sales Controller of KLA-Tencor, a maker of
tools used in microchip production. Prior to KLA-Tencor,
Mr.&nbsp;Dutta spent ten years, from January 1988 to February
1998, at Bio-Rad Laboratories, Inc., a manufacturer and
distributor of life science and diagnostic products.
Mr.&nbsp;Dutta held a variety of positions with the company,
including the group controller of the Life Science Group.
Mr.&nbsp;Dutta holds a B.A. degree in Economics from St.
Stephen&#146;s College, Delhi University in India and an M.B.A.
degree from Drucker School of Management.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Michael R. Jacobson
</FONT></I><FONT size="2">serves eBay as Senior Vice President,
Legal Affairs, General Counsel and Secretary. He has served in
that capacity or as Vice President, Legal Affairs, General
Counsel since August 1998. From 1986 to
</FONT>

<P align="center"><FONT size="2">23
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">August 1998, Mr.&nbsp;Jacobson was a partner with
the law firm of Cooley Godward LLP, specializing in securities
law, mergers and acquisitions and other transactions.
Mr.&nbsp;Jacobson holds an A.B. degree in Economics from Harvard
College and a J.D. degree from Stanford Law School.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Jeffrey D. Jordan
</FONT></I><FONT size="2">serves eBay as Senior Vice President
and General Manager, U.S. Business. He has served in that
capacity since April 2000. From September 1999 to April 2000,
Mr.&nbsp;Jordan served as eBay&#146;s Vice President, Regionals
and Services. From September 1998 to September 1999,
Mr.&nbsp;Jordan served as Chief Financial Officer for Hollywood
Entertainment and President of their subsidiary, Reel.com. From
September 1990 to September 1998, Mr.&nbsp;Jordan served in
various capacities including most recently Senior Vice President
and Chief Financial Officer of The Disney Store Worldwide, a
subsidiary of The Walt Disney Company. Mr.&nbsp;Jordan holds a
B.A. degree in Political Science and Psychology from Amherst
College and an M.B.A. degree from the Stanford Graduate School
of Business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Maynard G. Webb, Jr.
</FONT></I><FONT size="2">serves eBay as Chief Operating
Officer. He has served in that capacity since June 2002. From
August 1999 to June 2002, Mr.&nbsp;Webb served as President,
eBay Technologies. From July 1998 to August 1999, Mr.&nbsp;Webb
was Senior Vice President and Chief Information Officer at
Gateway, Inc. From February 1995 to July 1998, Mr.&nbsp;Webb was
Vice President and Chief Information Officer at Bay Networks,
Inc. From June 1991 to January 1995, Mr.&nbsp;Webb was Director,
IT at Quantum Corporation. Mr.&nbsp;Webb also serves on the
board of directors of Gartner, Inc., a high technology research
and consulting firm. Mr.&nbsp;Webb holds a B.A.A. degree from
Florida Atlantic University.
</FONT>

<DIV>&nbsp;</DIV>

<!-- link1 "Executive Compensation" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV align="center">
<B><FONT size="2">EXECUTIVE COMPENSATION</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">COMPENSATION OF EXECUTIVE OFFICERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table shows certain compensation
earned during the fiscal years ending December&nbsp;31, 2000,
2001 and 2002, by our Chief Executive Officer and four most
highly-compensated executive officers (based on their total
annual salary and bonus compensation), also referred to as the
Named Executive Officers, at December&nbsp;31, 2002.
</FONT>

<P align="center">
<B><FONT size="2">Summary Compensation Table</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="24%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Long-Term and</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Annual Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Other Compensation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other Annual</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">All Other</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Name and 2002 Principal Positions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fiscal Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Salary(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Bonus(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation(3)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation(6)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Margaret C. Whitman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">250,008</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">419,698</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(8)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,062</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">300,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,980</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">President and Chief
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">241,256</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,332</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">750,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Executive Officer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,882</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="27"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Maynard G. Webb, Jr.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">531,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">837,154</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(9)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Chief Operating Officer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">646,137</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(9)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">384</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">450,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503,151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">384</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="27"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey D. Jordan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">345,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">739,762</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(10)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">135,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">672</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Senior Vice President and General
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">322,404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">467,041</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(10)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Manager, U.S. Business
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">290,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">136,254</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">300,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(5)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="27"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Matthew J. Bannick
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">334,086</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">472,540</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(11)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,987</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,173</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Senior Vice President,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">279,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,396</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">300,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Global Online Payments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">207,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">86,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,872</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">24
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="24%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Long-Term and</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Annual Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Other Compensation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other Annual</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">All Other</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Name and 2002 Principal Positions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fiscal Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Salary(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Bonus(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation(3)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation(6)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="27"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">William C. Cobb
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">312,185</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">240,390</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(12)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,173</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Senior Vice President,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">283,666</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">202,026</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(12)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">92,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">International
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,576</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(7)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">280,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="45%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">Effective April&nbsp;1, 2002, all eligible
    employees of eBay, including certain of the Named Executive
    Officers, received an annual salary increase representing:
    (i)&nbsp;in the case of Mr.&nbsp;Webb, a salary of $525,000 per
    annum; (ii)&nbsp;in the case of Mr.&nbsp;Jordan, a salary of
    $350,136 per annum; (iii)&nbsp;in the case of Mr.&nbsp;Bannick,
    a salary of $350,112 per annum; and (iv)&nbsp;in the case of
    Mr.&nbsp;Cobb, a salary of $300,000 per annum.
    Mr.&nbsp;Cobb&#146;s salary increased to $350,112 in September
    2002 in connection with his increased responsibilities as Senior
    Vice President and General Manager, eBay International.
    Mr.&nbsp;Webb&#146;s salary increased to $575,000 in October
    2002 in connection with his increased responsibilities as Chief
    Operating Officer. Ms.&nbsp;Whitman&#146;s salary in 2002 was
    $250,008 per annum.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">All 2002 bonuses represent amounts paid in 2002
    and 2003 for services rendered in 2002, all 2001 bonuses
    represent amounts paid in 2001 and 2002 for services rendered in
    2001, and all 2000 bonuses represent amounts paid in 2000 and
    2001 for services rendered in 2000.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents: (i)&nbsp;in the case of
    Ms.&nbsp;Whitman, her personal use of eBay&#146;s corporate
    aircraft ($58,101), which is valued at rates prescribed under
    applicable IRS regulations, and of a corporate aircraft from an
    unaffiliated third-party vendor, which is valued at actual
    invoiced amounts ($74,961); and (ii)&nbsp;in the case of
    Mr.&nbsp;Bannick, costs associated with family transportation
    while Mr.&nbsp;Bannick worked out of our European offices during
    the summer of 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects option grants that were subsequently
    rescinded and cancelled by agreement between eBay and the
    applicable Named Executive Officer in July 2000 after it was
    determined that the grants might call into question the desired
    accounting treatment of our acquisition of Half.com.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)</FONT></TD>
    <TD align="left">
    <FONT size="2">All but 100,000 of the shares of our common stock
    underlying options granted to Mr.&nbsp;Jordan in 2000 were
    subsequently rescinded and cancelled by agreement between eBay
    and Mr.&nbsp;Jordan after it was determined that the grants
    might call into question the described accounting treatment of
    our acquisition of Half.com.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents: (i)&nbsp;in the case of
    Mr.&nbsp;Jordan, a reimbursement for relocation expenses paid to
    him in 2000 ($28,866) and 2001 ($2,875); (ii)&nbsp;in the case
    of Mr.&nbsp;Cobb, a reimbursement for relocation expenses paid
    to him in 2000 ($13,799) and 2001 ($90,243); and (iii)&nbsp;in
    the case of each of the Named Executive Officers, insurance
    premiums we paid with respect to group life insurance for their
    benefit and matching contributions under our 401(k) Plan
    (subject to the maximum of $1,500 per annum).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(7)</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Cobb was hired by eBay in November 2000.
    Accordingly, the amounts shown in the table above for fiscal
    year 2000 are for a period of less than a year.
    Mr.&nbsp;Cobb&#146;s salary in 2000 was $280,000 per annum.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(8)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents for 2002, $329,698 paid under
    eBay&#146;s Management Incentive Plan and an additional $90,000
    bonus granted by the Compensation Committee after the end of the
    fiscal year.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(9)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents for 2002, $387,254 paid under
    eBay&#146;s Management Incentive Plan and $449,900 paid under
    Mr.&nbsp;Webb&#146;s special retention plan and represents for
    2001, $290,927 paid under eBay&#146;s Management Incentive Plan
    and $355,200 under Mr.&nbsp;Webb&#146;s special retention plan.
    See &#147;Certain Relationships and Related Transactions.&#148;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(10)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents for 2002, $202,212 paid under
    eBay&#146;s Management Incentive Plan, $522,550 under
    Mr.&nbsp;Jordan&#146;s special retention plans and $15,000
    pursuant to our discretionary reward program, and represents for
    2001, $153,041 paid under eBay&#146;s Management Incentive Plan
    and $314,000 under Mr.&nbsp;Jordan&#146;s special retention
    plan. See &#147;Certain Relationships and Related
    Transactions.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(11)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents for 2002, $207,540 paid under
    eBay&#146;s Management Incentive Plan, $250,000 under
    Mr.&nbsp;Bannick&#146;s special retention plan and $15,000
    pursuant to our discretionary reward program. See &#147;Certain
    Relationships and Related Transactions.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(12)</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents for 2002, $170,390 paid under
    eBay&#146;s Management Incentive Plan and $70,000 under
    Mr.&nbsp;Cobb&#146;s special retention plan and represents for
    2001, $132,026 paid under eBay&#146;s Management Incentive Plan
    and $70,000 under Mr.&nbsp;Cobb&#146;s special retention plan.
    See &#147;Certain Relationships and Related Transactions.&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">25
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following executive officers received grants
of options in 2002 under the 2001 Plan.
</FONT>

<P align="center">
<B><FONT size="2">OPTION GRANTS DURING 2002</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Potential Realizable</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Value at Assumed Annual</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Rates of Stock Price</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Appreciation for</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Granted to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Option Term(4)</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Employees</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Expiration</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Granted(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">during 2002(2)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share(3)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">5%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">10%</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Margaret C. Whitman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">300,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">02/12/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,952,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,755,025</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Maynard G. Webb, Jr.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">02/12/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,476,100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,877,512</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey D. Jordan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">135,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">02/12/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,928,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,489,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Matthew J. Bannick
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">02/12/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,111,027</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,952,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">William C. Cobb
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">02/12/12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,563,417</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,564,594</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="45%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">Options granted in 2002 were granted under the
    2001 Plan. All options granted in 2002 to the Named Executive
    Officers were granted by our Board, are nonqualified stock
    options and are subject to a four-year vesting schedule, vesting
    12.5% after six months and 1/48 per month thereafter.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on options to purchase 14,205,236 shares of
    our common stock granted in 2002, exclusive of 150,000 shares
    granted to our directors and options to purchase an aggregate of
    2,511,149 shares that were assumed by us in connection with the
    PayPal acquisition in October 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)</FONT></TD>
    <TD align="left">
    <FONT size="2">Options were granted at an exercise price equal
    to the fair market value of our common stock, as determined by
    the Board of Directors on the date of grant. The exercise prices
    per shares listed in the table above are rounded to the nearest
    cent.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects the value of the stock option on the
    date of grant assuming (i) for the 5% column, a 5% annual rate
    of appreciation in our common stock over the ten-year term of
    the option and (ii)&nbsp;for the 10% column, a 10% annual rate
    of appreciation in our common stock over the ten-year term of
    the option, in each case without discounting to net present
    value and before income taxes associated with the exercise. The
    5% and 10% assumed rates of appreciation are based on the rules
    of the SEC and do not represent our estimate or projection of
    the future common stock price. The amounts in this table may not
    necessarily be achieved.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">26
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the number of
shares acquired and the value realized upon exercise of stock
options during 2002 and the number of shares of our common stock
subject to exercisable and unexercisable stock options held as
of December&nbsp;31, 2002, by each of the Named Executive
Officers. The value at fiscal year end is measured as the
difference between the exercise price and the fair market value
at close of market on December&nbsp;31, 2002, which was $67.82.
</FONT>

<P align="center">
<B><FONT size="2">Aggregate Option Exercises in 2002 and Values
at December&nbsp;31, 2002</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="24%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Number of Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Value of Unexercised</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Underlying Unexercised Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">In-the-Money Options at</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">at December&nbsp;31,&nbsp;2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,&nbsp;2002(2)</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Acquired on</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Value</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Realized(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable(#)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unexercisable(#)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable($)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unexercisable($)</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Margaret C. Whitman
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">218,750</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">831,250</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,947,734</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">18,801,391</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Maynard G. Webb
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">400,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,922,607</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">474,035</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">465,965</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,714,025</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10,443,840</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Jeffrey D. Jordan
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">133,328</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,576,137</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">355,901</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">334,648</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,253,147</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,438,814</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Matthew J. Bannick
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">113,329</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,106,234</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">220,832</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">247,497</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,312,179</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,155,422</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">William C. Cobb
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">85,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,898,718</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">86,874</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">233,126</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,057,054</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,942,533</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="45%" align="left" noshade>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">Value realized is based on the fair market value
    of our common stock on date of exercise minus the exercise price
    and does not necessarily reflect proceeds actually received by
    the officer.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">Calculated using the fair market value of our
    common stock on December 31, 2002 ($67.82) less the exercise
    price of the option.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">EQUITY COMPENSATION PLAN INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table gives information about our
shares of common stock that may be issued upon the exercise of
options, warrants and rights under all of our existing equity
compensation plans as of December&nbsp;31, 2002, including our
1996 Stock Option Plan, 1997 Stock Option Plan, 1998 Equity
Incentive Plan, 1998 Directors Stock Option Plan, the 1999
Global Equity Incentive Plan and the 2001 Plan, as well as
shares of our common stock that may be issued under individual
compensation arrangements that were not approved by our
stockholders, also referred to as our Non-Plan Grants. No
warrants or rights are outstanding under any of the foregoing
plans.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(c)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(b)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Securities</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Remaining Available for</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Securities to be</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise Price of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Future Issuance Under</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Issued Upon Exercise of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equity Compensation Plans</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Plan Category</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding Options,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options, Warrants</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Excluding Securities</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Warrants and Rights</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">and Rights</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reflected in Column&nbsp;(a))</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity compensation plans approved by
    securityholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,722,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,238,406</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(1)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity compensation plans not approved by
    securityholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">780,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(2)(3)(4)(5)(6)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,502,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55.07</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,238,406</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="45%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 1,623,993 shares of our common stock
    remaining available for future issuance under our 1998 Employee
    Stock Purchase Plan, as amended, or the ESPP, as of
    December&nbsp;31, 2002. Our ESPP contains an
    &#147;evergreen&#148; provision that automatically increases, on
    each January&nbsp;1, the number of securities available for
    issuance under the ESPP by the number of shares purchased under
    the ESPP in the preceding calendar year. An aggregate amount of
    176,007 shares was purchased under the ESPP in 2002. None of our
    other plans has an &#147;evergreen&#148; provision. If the
    stockholders approve the proposed amendment to the 2001 Equity
    Incentive Plan and approve the 2003 Deferred Stock Unit Plan,
    the number of securities remaining available for future issuance
    under equity compensation plans would increase to 37,238,406
    shares.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)</FONT></TD>
    <TD align="left">
    <FONT size="2">Does not include 13,772 shares of our common
    stock, with a weighted average exercise price of $1.10 per
    share, to be issued upon exercise of outstanding options assumed
    by us under the Billpoint, Inc. 1999 Stock Option Plan, or the
    Billpoint Plan, in connection with our acquisition of Billpoint
    in 1999, as we cannot make subsequent grants or awards of our
    equity securities under the Billpoint Plan. Prior to our
    acquisition of Billpoint, the stockholders of Billpoint approved
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">27
</FONT>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">the Billpoint Plan. Our stockholders, however,
    did not approve the Billpoint Plan in connection with our
    acquisition of Billpoint.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)</FONT></TD>
    <TD align="left">
    <FONT size="2">Does not include 95,363 shares of our common
    stock, with a weighted average exercise price of $13.83 per
    share, to be issued upon exercise of outstanding options assumed
    by us under the Half.com, Inc. 1999 Equity Compensation Plan, or
    the Half.com Plan, in connection with our acquisition of
    Half.com in 2000, as we cannot make subsequent grants or awards
    of our equity securities under the Half.com Plan. Prior to our
    acquisition of Half.com, the stockholders of Half.com approved
    the Half.com Plan. Our stockholders, however, did not approve
    the Half.com Plan in connection with our acquisition of Half.com.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)</FONT></TD>
    <TD align="left">
    <FONT size="2">Does not include 59,159 shares of our common
    stock, with a weighted average exercise price of $0.43 per
    share, to be issued upon exercise of outstanding options assumed
    by us under the Confinity, Inc. 1999 Stock Plan, or the
    Confinity Plan, in connection with our acquisition of PayPal in
    October 2002, as we cannot make subsequent grants or awards of
    our equity securities under the Confinity Plan. The Confinity
    Plan was assumed by PayPal in connection with its merger with
    Confinity in 2000. Prior to our acquisition of PayPal and
    PayPal&#146;s merger with Confinity, the stockholders of
    Confinity approved the Confinity Plan. Our stockholders,
    however, did not approve the Confinity Plan in connection with
    our acquisition of PayPal.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)</FONT></TD>
    <TD align="left">
    <FONT size="2">Does not include 323,313 shares of our common
    stock, with a weighted average exercise price of $3.00 per
    share, to be issued upon exercise of outstanding options assumed
    by us under the X.com Corporation 1999 Stock Plan, or the X.com
    Plan, in connection with our acquisition of PayPal in October
    2002, as we cannot make subsequent grants or awards of our
    equity securities under the X.com&nbsp;Plan. Prior to our
    acquisition of PayPal, the stockholders of PayPal approved the
    X.com&nbsp;Plan. Our stockholders, however, did not approve the
    X.com&nbsp;Plan in connection with our acquisition of PayPal.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)</FONT></TD>
    <TD align="left">
    <FONT size="2">Does not include 1,182,373 shares of our common
    stock, with a weighted average exercise price of $33.73 per
    share, to be issued upon exercise of outstanding options assumed
    by us under the PayPal, Inc. 2001 Equity Incentive Plan, or the
    PayPal Plan, in connection with our acquisition of PayPal in
    October 2002, as we cannot make subsequent grants or awards of
    our equity securities under the PayPal Plan. Prior to our
    acquisition of PayPal, the stockholders of PayPal approved the
    PayPal Plan. Our stockholders, however, did not approve the
    PayPal Plan in connection with our acquisition of PayPal.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The only outstanding Non-Plan Grant as of
December&nbsp;31, 2002 relates to an individual compensation
arrangement that was made prior to the initial public offering
of our common stock in 1998. At the time of this Non-Plan Grant,
members of our Board and their affiliates beneficially owned in
excess of 90% of our then outstanding equity and voting
interests. This Non-Plan Grant has been previously disclosed in
our initial public offering prospectus filed with the SEC on
September&nbsp;25, 1998 under the headings
&#147;Management&nbsp;&#151; Director Compensation&#148; and
&#147;&#151;&nbsp;Compensation Arrangements.&#148; Except as set
forth below, the terms and conditions of this Non-Plan Grant are
identical to the terms of our 1997 Stock Option Plan, a copy of
which was filed as an exhibit to our S-1&nbsp;Registration
Statement (No.&nbsp;33-59097) filed in connection with our
initial public offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The outstanding Non-Plan Grant involved the
Board&#146;s grant of an option to purchase 900,000 shares of
our common stock at an exercise price of $1.56 to Mr.&nbsp;Cook
upon his joining our Board in June 1998 as an independent
director. These options granted to Mr.&nbsp;Cook were
non-qualified options and were immediately exercisable, with a
term of 10&nbsp;years. These options vested as to 25% of the
underlying shares in June 1999 and as to 2.08% of the shares
each month thereafter until they fully vested in June 2002.
Mr.&nbsp;Cook exercised 120,000 of these options in May 2002 and
exercised an additional 100,000 of these options in February
2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A second Non-Plan Grant involved the Board&#146;s
grant of an option to purchase 3,600,000 shares of our common
stock at an exercise price of $2.50 to Brian Swette upon his
joining eBay in August 1998 as Senior Vice President of
Marketing and International. These options granted to
Mr.&nbsp;Swette were non-qualified options with a term of ten
years. During 2002, Mr.&nbsp;Swette exercised all options
available to him in connection with his departure from eBay. No
options were outstanding under this grant as of
December&nbsp;31, 2002.
</FONT>

<P align="center"><FONT size="2">28
</FONT>

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<!-- link1 "Report of the Compensation Committee of the Board of Directors on Executive Compensation(1)" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center">
<B><FONT size="2">REPORT OF THE COMPENSATION COMMITTEE OF THE
BOARD OF DIRECTORS</FONT></B>

<DIV align="center">
<B><FONT size="2">ON EXECUTIVE
COMPENSATION<SUP>(1)</SUP></FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We constitute the Compensation Committee of the
Board of Directors of eBay. None of us has been an officer or
employee of eBay. We are responsible for the design,
administration, and oversight of the compensation and benefits
programs for eBay&#146;s executive officers, including the CEO.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The goals of eBay&#146;s compensation program are
to align compensation with business objectives and performance
and to enable eBay to attract, retain and reward executive
officers and other key employees who contribute to eBay&#146;s
long-term success and to motivate them to enhance long-term
stockholder value. To meet these goals, we employ a mix of total
compensation elements currently composed of base salary, cash
bonus and stock options as long term incentives.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, eBay&#146;s pay positioning strategy was
to target total annual cash (i.e., base salary and short-term
incentives) at median competitive levels. Given eBay&#146;s
superior performance, long-term incentive awards were positioned
above the 75th percentile of competitive levels. The result, in
aggregate, was total direct compensation positioned between the
50th and 75th percentile of the competitive market. This
positioning reflected eBay&#146;s stage of development and
desire for highly leveraged compensation. 2003 will be the
beginning of a multi-year transition in which eBay&#146;s pay
positioning strategy will migrate toward alignment with median
competitive levels for target total annual cash compensation,
and up to the 75th percentile of competitive levels for
long-term incentive awards (depending on company performance).
The new pay positioning strategy will reflect eBay&#146;s growth
and development while maintaining a strong pay-for-performance
relationship.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee retains an independent consulting
firm as an advisor and resource to help develop and execute the
company&#146;s total compensation strategy. To provide us with
information for making external compensation comparisons, our
independent consultant provides us with competitive data for
each executive position by analyzing proprietary surveys and
publicly disclosed documents of selected high-tech and consumer
product companies, taking into consideration eBay&#146;s size,
scope of operations, and business focus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Base Salary.</FONT></I><FONT size="2"> Base
salary is the fixed portion of executive pay and compensates
individuals for expected day-to-day performance. We meet at
least annually to review and approve each executive
officer&#146;s salary for the ensuing year. When reviewing base
salaries, we consider the following factors: competitive pay
practices; individual performance against goals; levels of
responsibility; breadth of knowledge; and prior experience. For
2002, based in part on external comparisons, and recommendations
by the CEO (for non-CEO executive officer compensation), we
increased the salary levels of some of the executive officers
beginning April&nbsp;1, 2002. We set the base salaries of our
executive officers (other than our CEO) in a range from $250,000
to $575,000. As discussed below under the heading of &#147;CEO
Compensation,&#148; Meg Whitman did not receive a salary
increase in 2002. Her salary remained at $250,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Bonus. </FONT></I><FONT size="2">In 2002,
payments made through eBay&#146;s bonus plan were variable and
designed to reward participants quarterly based on company
financial and individual performance. The management incentive
plan (MIP) for our executive officers (and for our officers and
other key employees) provides for quarterly bonuses based upon
financial targets set by our Committee for each quarter and on
achievement of quarterly individual goals, so long as a minimum
financial performance threshold has been met. The financial
performance measures for the plan in 2002 were contribution from
operations and revenue. The Committee believes these goals are
the strongest drivers of long-term value for the company. Total
annual target bonus amounts for executive officers (other than
the CEO) were 40% to 50% of base salary depending upon position.
The target bonus amount for our CEO was 100%. One-fourth of this
target amount was allocated to each quarter. Quarterly bonus
amounts could range from 0% to 175% of an executive&#146;s
target opportunity, based on financial and individual
performance in that quarter. In 2002, eBay
</FONT>

<DIV align="left">
<HR size="1" width="25%" align="left" noshade>
</DIV>

<DIV align="left">

</DIV>

<DIV align="left">
<SUP><FONT size="2">(1)</FONT></SUP><FONT size="2">&nbsp;The
material in this report is not &#147;soliciting material,&#148;
is not deemed &#147;filed&#148; with the SEC, and is not to be
incorporated by reference in any of our filings under the 1933
Act or 1934 Act, whether made before or after the date hereof
and irrespective of any general incorporation language contained
in such filing.
</FONT>
</DIV>

<P align="center"><FONT size="2">29
</FONT>

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<DIV align="left">
<FONT size="2">exceeded financial targets for every quarter,
which contributed, along with individual performance, to
quarterly bonus payments for eBay executives ranging from 108%
to 175% of target opportunity.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2003, payments made through eBay&#146;s MIP to
executive officers will reward participants for annual, as well
as quarterly, performance. Rather than one-fourth of the total
annual target allocated to each quarter (as in the 2002 plan),
one-fifth will be allocated to each quarter and one-fifth will
be based on annual financial performance, measured by pro forma
earnings per share and revenue. It is the intention of the
Committee to continue to migrate toward annual measurement of
performance under the MIP. Under the 2003 MIP, consistent with
the company&#146;s pay positioning strategy, total annual bonus
amounts for the executive officers (other than the CEO) will
range from 50% to 65% of base salary depending upon position.
Quarterly bonus amounts will have the potential to range from 0%
to 160% of target opportunity based on financial and individual
performance and the annual bonus component could range from 0%
to 250% of target opportunity based on financial performance.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock Options.
</FONT></I><FONT size="2">eBay&#146;s stock option plans are
designed to align participants with the long-term interests of
eBay&#146;s stockholders, and to provide a total compensation
opportunity commensurate with company performance. Initial
grants of stock options are generally made to eligible employees
upon commencement of employment. Following the initial hire,
additional grants are made to participants pursuant to a
periodic focal grant program or following a significant change
in job responsibilities, scope, or title. Stock options under
the option plans generally vest over a four-year period and
expire ten years from the date of grant. The exercise price of
our option grants has been set at 100% of the fair market value
of our common stock on the date of grant.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Initial stock option grants and
&#147;follow-on&#148; (periodic) option grants for participants
under the option plans are generally determined within ranges
established for each job level. These ranges are established
based on the company&#146;s desired pay positioning. Initial
option grants for specific individuals also take into account
specific recruitment needs. Follow-on option grants to specific
individuals are based upon a number of factors, including
performance of the individual, job level, future potential,
competitive external levels, and past option grants. eBay
generally makes follow-on grants for key employees other than
its officers twice a year, during the first and third quarters.
The Board of Directors has delegated the authority to make
option grants to non-officers to a Non-Officer Stock Option
Grant Committee consisting of Ms.&nbsp;Whitman. Grants to
officers are made once per year, in the first quarter, by the
Committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, we created a special retention plan for
Matthew Bannick in connection with his appointment as
eBay&#146;s Senior Vice President, Global Online Payments, prior
to the closing of our acquisition of PayPal. Under this plan,
Mr.&nbsp;Bannick received a bonus payment in October of 2002,
upon the closing, and will receive bonus payments in
July&nbsp;2003, and April and October, 2004, provided he remains
employed by eBay and meets certain goals. Each payment is
$250,000. We also added to an earlier retention bonus plan for
William Cobb by increasing the payment to be made under that
plan in November of 2004, provided Mr.&nbsp;Cobb remains
employed by eBay, from $70,000 to $350,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">CEO Compensation.
</FONT></I><FONT size="2">The Committee elected to maintain
Ms.&nbsp;Whitman&#146;s salary at $250,000 in 2002. Rather than
an increase in salary, Ms.&nbsp;Whitman was allowed reasonable
personal use of eBay&#146;s corporate aircraft and chartered
flights in 2002 at no personal expense after tax. Similar to
other eBay employees, Ms.&nbsp;Whitman&#146;s quarterly bonus
awards were determined based on eBay&#146;s financial
performance and her individual performance. To determine
individual performance, the Committee considered several
factors. These were the attainment of eBay&#146;s strategic
objectives and growth initiatives, including our acquisitions,
and her leadership of the company&#146;s management throughout
the year. Taking financial and individual performance into
account, Ms.&nbsp;Whitman received an aggregate annual bonus of
168% of her base salary, as compared to a target opportunity of
100%, which was raised by the Committee from 50% in
April&nbsp;2002. Following the end of the year, in conformity
with its earlier determination relating to personal use of
aircraft, the Committee approved an additional bonus of $90,000
to cover any personal income taxes Ms.&nbsp;Whitman may incur as
a result of her use of the corporate aircraft. In addition, in
January&nbsp;2002, the Committee determined to make an option
grant of 300,000&nbsp;shares, vesting monthly over four years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the first quarter of 2003, the Committee
considered Ms.&nbsp;Whitman&#146;s compensation for 2003. To
assist in its determination, the Committee again received advice
from its independent compensation consulting firm. As was noted
above, Ms.&nbsp;Whitman historically has been an exception to
the company&#146;s general compensation
</FONT>

<P align="center"><FONT size="2">30
</FONT>

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<DIV align="left">
<FONT size="2">philosophy with respect to cash compensation,
receiving a salary and bonus far below comparable CEOs. For
2003, in light of the continuing maturing of the company, full
vesting of a vast majority of Ms. Whitman&#146;s equity
compensation, and the company&#146;s excellent financial
results, the Committee determined it would be appropriate to
apply similar criteria to Ms.&nbsp;Whitman as it applied to
other executive officers. Accordingly, it increased
Ms.&nbsp;Whitman&#146;s salary to $990,000, effective
March&nbsp;1, 2003. Ms.&nbsp;Whitman&#146;s bonus target
remained set at 100%. Ms. Whitman was also granted an option to
purchase 550,000 shares, vesting over four years.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Section&nbsp;162(m).
</FONT></I><FONT size="2">eBay is limited by Section&nbsp;162(m)
of the Internal Revenue Code of 1986 to a deduction for federal
income tax purposes of up to $1&nbsp;million of compensation
paid to certain Named Executive Officers in a taxable year.
Compensation above $1&nbsp;million may be deducted if it meets
certain technical requirements to be classified as
&#147;performance-based compensation.&#148; Although the
Committee uses the requirements of Section&nbsp;162(m) as a
guideline, deductibility is not the sole factor it considers in
assessing the appropriate levels and types of executive
compensation and it will elect to forego deductibility when the
Committee believes it to be in the best interests of the company
and its stockholders. In 2002, due primarily to his retention
bonus arrangement, approximately $370,000 of
Mr.&nbsp;Webb&#146;s cash compensation was not deductible. In
2003, we expect that a portion of Mr.&nbsp;Webb&#146;s cash
compensation will again exceed the Section&nbsp;162(m)
limitation and be non-deductible. In addition, a portion of
Ms.&nbsp;Whitman&#146;s cash compensation in 2003 will likely
exceed the limit and be non-deductible.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Summary. </FONT></I><FONT size="2">Through the
plans described above, a significant portion of our compensation
program for our executive officers (including our CEO) is
contingent upon individual and eBay performance, and realization
of benefits by our CEO and the other executive officers is
closely linked to increases in long-term stockholder value. We
remain committed to this philosophy of pay-for-performance. We
will continue to review executive compensation programs
periodically and will consider new and revised programs, as
appropriate, to ensure the interests of stockholders are served.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="42%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="2">COMPENSATION COMMITTEE</FONT></B></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Philippe Bourguignon
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Robert C. Kagle
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Howard D. Schultz
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">31
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Compensation Committee Interlocks and Insider Participation" -->
<DIV align="left"><A NAME="013"></A></DIV>

<P align="center">
<B><FONT size="2">COMPENSATION COMMITTEE INTERLOCKS AND INSIDER
PARTICIPATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No member of the Compensation Committee is or was
formerly an officer or an employee of eBay. No interlocking
relationship exists between the Board of Directors or
Compensation Committee and the board of directors or
compensation committee of any other company, nor has such
interlocking relationship existed in the past.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Kagle, a member of our Compensation
Committee, is a member of the general partner of certain venture
capital funds that beneficially hold greater than 10% of the
equity interests in Keen Inc. and Vcommerce, Inc. We engaged in
the following transactions with these companies in 2002:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In April&nbsp;2000, we entered into an
advertising and promotions agreement with Keen. under which we
recognized revenues of approximately $200,000 in 2002 in
exchange for our promotion of Keen. Our agreement with Keen
expired during 2002. In February&nbsp;2001, our wholly owned
subsidiary, Half.com, entered into a certain content licensing
and inventory sales agreement with Vcommerce pursuant to which
Vcommerce agreed to list its inventory on Half&#146;s website
and to allow Half to use Vcommerce&#146;s catalog data to
supplement Half&#146;s existing catalog data. Half paid
Vcommerce approximately $25,000 in 2002 under this agreement.
Half has recognized approximately $42,000 of expense in 2003
under its agreement with Vcommerce.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that all of the transactions set forth
above were made on terms no less favorable to us than we could
have obtained from unaffiliated third parties.
</FONT>

<P align="center"><FONT size="2">32
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERFORMANCE MEASUREMENT
COMPARISON<SUP>(1)</SUP></FONT></B>

<P align="left">
<FONT size="2">The graph below shows the cumulative total
stockholder return of an investment of $100 (and the
reinvestment of any dividends thereafter) on September&nbsp;24,
1998, the first trading day of our common stock, in (i)&nbsp;our
common stock, (ii)&nbsp;the Nasdaq National Market Index,
(iii)&nbsp;the S&#38;P&nbsp;500 Index and (iv)&nbsp;the Goldman
Sachs Internet Index. eBay was added to the S&#38;P&nbsp;500
Index on July&nbsp;19, 2002. The Goldman Sachs Internet Index is
a modified-capitalization weighted index of 13&nbsp;stocks
representing the Internet industry, including Internet content
and access providers, Internet software and services companies
and e-commerce companies. eBay&#146;s stock price performance
shown in the graph below is not indicative of future stock price
performance.
</FONT>

<P align="center">
<IMG src="f89686def8968602.gif" alt="(PERFORMANCE GRAPH)">


<P>
<CENTER>
<TABLE align="center" cellspacing="0" cellpadding="0" border="0" width="100%">
 <TR>
  <TD width="20%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="10%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="10%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="10%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="6%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="10%">&nbsp;</TD>
  <TD width="2%">&nbsp;</TD>
</TR>
 <TR valign="bottom">
  <TD align="center"><FONT size="1"><B>Measurement Point</B></FONT></TD>
  <TD>&nbsp;</TD>
  <TD align="center" colspan="3"><FONT size="1"><B>eBay Inc.</B></FONT></TD>
  <TD>&nbsp;</TD>
  <TD align="center" colspan="3"><FONT size="1"><B>Goldman
Sachs<BR>Interest Index (GIN)</B></FONT></TD>
  <TD>&nbsp;</TD>
  <TD align="center" colspan="3"><FONT size="1"><B>Nasdaq Composite
Index</B></FONT></TD>
  <TD>&nbsp;</TD>
  <TD align="center" colspan="3"><FONT size="1"><B>S&#038;P 500 Index</B></FONT></TD>
 </TR>
 <TR valign="bottom">
  <TD><HR size="1" noshade></TD>
  <TD>&nbsp;</TD>
  <TD colspan="3"><HR size="1" noshade></TD>
  <TD>&nbsp;</TD>
  <TD colspan="3"><HR size="1" noshade></TD>
  <TD>&nbsp;</TD>
  <TD colspan="3"><HR size="1" noshade></TD>
  <TD>&nbsp;</TD>
  <TD colspan="3"><HR size="1" noshade></TD>

<TR valign="top">
<TD align="center"><FONT size="2">9/24/98</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">100.00</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">100.00</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">100.00</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">$</FONT></TD>
<TD align="right"><FONT size="2">100.00</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">12/31/98</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">509.24</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">211.61</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">127.46</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">117.89</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">3/31/99</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">869.53</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">345.58</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">143.08</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">123.37</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">6/30/99</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">958.58</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">309.56</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">156.14</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">131.65</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">9/30/99</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">893.27</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">285.03</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">159.63</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">123.02</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">12/31/99</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">792.75</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">445.02</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">236.54</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">140.91</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">3/31/00</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">1,114.52</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">405.87</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">265.81</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">143.72</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">6/30/00</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">687.87</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">275.54</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">230.54</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">139.50</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">9/29/00</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">869.92</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">263.27</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">213.49</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">137.77</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">12/29/00</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">417.94</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">113.47</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">143.61</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">126.62</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">3/30/01</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">458.31</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">69.32</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">106.97</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">111.28</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">6/29/01</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">867.42</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">86.06</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">125.59</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">117.42</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">9/28/01</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">579.42</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">47.01</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">87.12</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">99.83</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">12/31/01</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">847.29</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">65.55</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">113.37</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">110.10</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">3/28/02</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">717.34</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">60.36</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">107.27</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">110.04</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">6/28/02</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">780.41</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">45.93</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">85.05</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">94.93</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">9/30/02</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">668.84</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">37.97</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">68.13</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">79.19</FONT></TD>
<TD>&nbsp;</TD>
 </TR>

<TR valign="top">
<TD align="center"><FONT size="2">12/31/02</FONT></TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">858.94</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">46.66</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">77.63</FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"><FONT size="2">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2">84.38</FONT></TD>
<TD>&nbsp;</TD>
 </TR>
</TABLE>
</CENTER>







<P align="left">
<HR size="1" width="45%" align="left" noshade>

<P align="left">
<SUP><FONT size="2">(1)</FONT></SUP><FONT size="2">&nbsp;The
material in this section is not &#147;soliciting material,&#148;
is not deemed &#147;filed&#148; with the SEC and is not to be
incorporated by reference in any of our filings under the 1933
Act or the 1934 Act whether made before or after the date hereof
and irrespective of any general incorporation language in any
such filing.
</FONT>

<P align="center"><FONT size="2">33
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Certain Relationships and Related Transactions" -->
<DIV align="left"><A NAME="014"></A></DIV>

<P align="center">
<B><FONT size="2">CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have entered into indemnification agreements
with each of our directors and executive officers. These
agreements require us to indemnify such individuals, to the
fullest extent permitted by Delaware law, for certain
liabilities to which they may become subject as a result of
their affiliation with eBay.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the Sarbanes-Oxley Act of 2002, we
no longer make personal loans to executive officers that are
prohibited by such Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In August 2000, Mr.&nbsp;Webb, our Chief
Operating Officer, entered into a four-year term loan with us at
an interest rate of 6.37% per annum, with 10%, 15%, 25% and 50%
of principal on the loan being due on each of the first, second,
third and fourth anniversary of the loan&#146;s issue date,
respectively. The principal amount on the loan was approximately
$2,169,800, which amount represented the principal and accrued
interest due at the end of a one-year term loan entered into in
August 1999 between Mr.&nbsp;Webb and us shortly after his
relocation to San Jose as a result of his joining eBay in 1999,
and was secured by Mr.&nbsp;Webb&#146;s principal place of
residence. In January 2001, we entered into a special retention
bonus plan with Mr.&nbsp;Webb, under which Mr.&nbsp;Webb
received bonus payments in August of 2001 and 2002 and remains
eligible to receive bonus payments in August 2003 and 2004 if he
is then employed by us. Payment amounts under
Mr.&nbsp;Webb&#146;s bonus plan are $355,200 for 2001, $449,900
for 2002, $646,100 for 2003 and $1,154,000 for 2004, and may be
used to pay principal and interest payments owing to us under
the terms of his loan. In August 2001 and August 2002, in
accordance with the terms of his loan, Mr.&nbsp;Webb paid down
$355,200 and $449,900, respectively, of principal and accrued
interest on the loan. The maximum indebtedness of Mr.&nbsp;Webb
to us during 2002 was $2,077,211. Our loan to Mr.&nbsp;Webb was
made prior to the July 2002 enactment of the Sarbanes-Oxley Act.
In January 2003, Mr.&nbsp;Webb prepaid in full the principal and
accrued interest on his loan in the amount of approximately
$1,670,800.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2000, Mr.&nbsp;Jordan, our Senior Vice
President and General Manager, U.S.&nbsp;Business, entered into
two four-year term loans with us at an interest rate of 6.40%
per annum, with principal and accrued interest payable on each
loan in equal installments on each anniversary. The principal
amounts on the loans were $1,000,000 and $900,000, respectively,
with the loan amounts secured by Mr.&nbsp;Jordan&#146;s
principal place of residence. In May 2000, we entered into a
special retention bonus plan with Mr.&nbsp;Jordan under which
Mr.&nbsp;Jordan received bonus payments in May of 2001 and 2002
and remains eligible to receive bonus payments in May 2003 and
2004 if he is then employed by us. Payment amounts under this
bonus plan with Mr.&nbsp;Jordan are $314,000 for 2001, $298,000
for 2002, $282,000 for 2003, and $266,000 for 2004, and may be
used to pay principal and interest payments Mr.&nbsp;Jordan will
then owe to us under the loans described in this paragraph. In
July 2000, Mr.&nbsp;Jordan repaid in full the principal and
accrued interest on the $900,000 term loan. In addition, in
April 2001, Mr.&nbsp;Jordan entered into a four-year term loan
with us at an interest rate of 4.94% per annum, with principal
and accrued interest payable in equal installments on each
anniversary of this loan. The principal amount on this loan was
$750,000, with the loan amount secured by Mr.&nbsp;Jordan&#146;s
principal place of residence. In April 2001, we entered into a
second special retention bonus plan with Mr.&nbsp;Jordan under
which Mr.&nbsp;Jordan received bonus payments in April of 2002
and remains eligible to receive bonus payments in April 2003,
2004 and 2005 if he is then employed by us. Payment amounts
under this bonus plan with Mr.&nbsp;Jordan are $224,550 for
2002, $215,288 for 2003, $206,025 for 2004, and $196,763 for
2005, and may be used to pay principal and interest payments
Mr.&nbsp;Jordan will then owe to us under the loans described in
this paragraph. In May 2001 and May 2002, Mr.&nbsp;Jordan paid
down $314,000 and $298,000, respectively, of principal and
accrued interest on his May 2000 loan. In April 2002,
Mr.&nbsp;Jordan paid down $224,550 of principal and accrued
interest on his April 2001 loan. The maximum indebtedness of
Mr.&nbsp;Jordan to us during 2002 was $1,579,050. Our loans to
Mr.&nbsp;Jordan were made prior to the July 2002 enactment of
the Sarbanes-Oxley Act. In accordance with such Act, we will not
materially modify or renew either of these loans.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In March 2001, in connection with his relocation
to San Jose as a result of his joining eBay in late 2000,
Mr.&nbsp;Cobb, our Senior Vice President and General Manager,
eBay International, entered into a four-year, non-interest
bearing term loan with us in the amount of $840,000. The loan to
Mr.&nbsp;Cobb is secured by his principal place of residence.
Principal payments of $70,000 are due on the first, second and
third anniversaries of the date Mr.&nbsp;Cobb joined eBay
(November&nbsp;27, 2000), with a balloon payment of the
remaining principal due on November&nbsp;27, 2004. In November
2000, we entered into a special retention bonus plan with
Mr.&nbsp;Cobb under which Mr.&nbsp;Cobb received a
</FONT>

<P align="center"><FONT size="2">34
</FONT>

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<DIV align="left">
<FONT size="2">$70,000 bonus payment in November of 2001 and
2002 and remains eligible to receive bonus payments in November
2003 and 2004 if he is then employed by us<B>. </B>In April
2002, we entered into a second special retention bonus plan with
Mr.&nbsp;Cobb under which Mr.&nbsp;Cobb will receive a $280,000
bonus payment on November&nbsp;27, 2004 if he is then employed
by us. Mr.&nbsp;Cobb may use these bonus payments to pay
principal payments due under his loan. In November 2001 and
2002, Mr.&nbsp;Cobb paid down $70,000 and $70,000, respectively,
of principal on his loan. The maximum indebtedness of
Mr.&nbsp;Cobb to us during 2002 was $770,000. Our relocation
loan to Mr.&nbsp;Cobb was made prior to the July 2002 enactment
of the Sarbanes-Oxley Act. In accordance with the Sarbanes-Oxley
Act, we will not materially modify or renew this loan.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In September 2002, we entered into a special
retention bonus plan with Mr.&nbsp;Bannick. Under the terms of
this bonus plan, Mr.&nbsp;Bannick received a $250,000 bonus
payment after the closing of our acquisition of PayPal in
October 2002 and upon his acceptance of the new position as our
Senior Vice President and General Manager, Global Online
Payments. Mr.&nbsp;Bannick remains eligible to receive
performance-based bonus payments related primarily to the
integration and performance of our PayPal subsidiary of up to
$250,000 on each of the nine-month, 18-month, and 24-month
anniversaries of the October 2002 closing of the PayPal
acquisition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Omidyar, our Founder and the Chairman of
our Board of Directors, and Mr.&nbsp;Skoll, a beneficial owner
of more than 5% of our common stock, from time to time make
their personal aircraft available to our officers for business
purposes at no cost to us. The imputed cost of the aircraft use
was not material to our Consolidated Financial Statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Cook, a member of our Board of
Directors, is a director and Chairman of the Executive Committee
of the Board of Directors of Intuit. In September 2000, prior to
eBay&#146;s acquisition of PayPal, PayPal entered into a
strategic marketing agreement with Intuit. PayPal paid Intuit
approximately $672,000 in 2002 under this agreement. The
agreement was terminated in December 2002, and PayPal paid
Intuit an early termination fee of $1,349,000 in January 2003 in
accordance with the terms of the agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain other transactions are described under
the caption &#147;Compensation Committee Interlocks and Insider
Participation.&#148;
</FONT>

<P align="left">
<B><FONT size="2">SECTION&nbsp;16(a) BENEFICIAL OWNERSHIP
REPORTING COMPLIANCE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Section&nbsp;16(a) of the Securities Exchange Act
of 1934 requires our directors and executive officers, and
persons who own more than 10% of a registered class of our
equity securities, to file with the SEC initial reports of
ownership and reports of changes in ownership of our common
stock and other equity securities of the company. Officers,
directors and greater than 10% stockholders are required by SEC
regulation to furnish us with copies of all Section&nbsp;16(a)
forms they file.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To our knowledge, based solely on a review of the
copies of such reports furnished to us and written
representations that no other reports were required, during the
fiscal year ended December&nbsp;31, 2002, all Section&nbsp;16(a)
filing requirements applicable to our officers, directors and
greater than 10% beneficial owners were complied with, except
Mr.&nbsp;Bannick reported one late report on Form&nbsp;4 that
involved one transaction covering 411&nbsp;shares.
</FONT>

<P align="center"><FONT size="2">35
</FONT>

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<P align="left">
<B><FONT size="2">OTHER MATTERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors knows of no other matter
that will be presented for consideration at the Annual Meeting.
If any other matters are properly brought before the meeting,
the persons named in the accompanying proxy intend to vote on
those matters in accordance with their best judgment.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="30%"></TD>
    <TD width="70%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">By Order of the Board of Directors
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <IMG src="f89686def8968601.gif" alt="(Michael R. Jacobson)"></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Michael R. Jacobson
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Secretary
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">May 16, 2003
</FONT>

<P align="left">
<B><FONT size="2">Copies of this proxy statement and of our
annual report for the fiscal year ended December&nbsp;31, 2002
are available by visiting our investor relations website at
<I>www.shareholder.com/ebay/annual.cfm </I>or free of charge by
writing to Investor Relations, eBay Inc., 2145&nbsp;Hamilton
Avenue, San Jose, California 95125.</FONT></B>

<P align="center"><FONT size="2">36
</FONT>
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<DIV align="right">
<B><FONT size="2">APPENDIX&nbsp;A</FONT></B>
</DIV>

<P align="center">
<B>eBay Inc.</B>

<P align="center">
<B>CHARTER OF THE AUDIT COMMITTEE</B>

<P align="left">
<B><FONT size="2">PURPOSES AND POLICY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee shall provide assistance and
guidance to the Board of Directors of eBay Inc., a Delaware
corporation (the &#147;Company&#148;) in fulfilling its
oversight responsibilities to the Company&#146;s stockholders
with respect to (i)&nbsp;the Company&#146;s corporate accounting
and reporting practices, (ii)&nbsp;the Company&#146;s compliance
with legal and regulatory requirements, (iii)&nbsp;the
independent auditor&#146;s qualifications and independence,
(iv)&nbsp;the performance of the Company&#146;s internal audit
function and independent auditors, (v)&nbsp;the quality and
integrity of the Company&#146;s financial statements and
reports, (vi)&nbsp;reviewing and approving all audit engagement
fees and terms, as well as all non-audit engagements with the
independent auditors, and (vii)&nbsp;producing the report that
the rules of the Securities and Exchange Committee
(&#147;SEC&#148;) require be included in the Company&#146;s
annual proxy statement. The policy of the Audit Committee, in
discharging these obligations, shall be to maintain and foster
an open avenue of communication between the Audit Committee and
the independent auditors, the Company&#146;s financial
management and internal auditors.
</FONT>

<P align="left">
<B><FONT size="2">COMPOSITION AND ORGANIZATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee shall consist of at least
three members of the Board of Directors, each of whom
(i)&nbsp;is &#147;independent&#148; under the rules of the
Nasdaq Stock Market, Inc. and the Sarbanes-Oxley Act of 2002
(the &#147;2002 Act&#148;), (ii)&nbsp;does not accept any
consulting, advisory or other compensatory fee from the issuer
other than in his or her capacity as a member of the Board or
any committee of the Board, and (iii)&nbsp;is not an affiliate
of the Company and does not own or control 20% or more of the
Company&#146;s voting securities, or such lower measurement as
may be established by the SEC. All members of the Audit
Committee must be able to read and understand fundamental
financial statements, including a company&#146;s balance sheet,
income statement, and cash flow statement, and the Audit
Committee shall determine whether at least one member who is a
&#147;financial expert&#148;, as defined by the SEC for purposes
of the 2002 Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The members of the Audit Committee shall be
appointed by the Board based upon nominations by the
Company&#146;s Corporate Governance and Nominating Committee.
The members of the Audit Committee will be appointed by and
serve at the discretion of the Board. The Audit Committee may,
in its discretion, delegate all or a portion of its duties and
responsibilities to a subcommittee or any member of the Audit
Committee. Without limiting the generality of the foregoing, the
Audit Committee may, in its discretion, delegate to one or more
of its members the authority to pre-approve any audit or
non-audit services to be performed by the independent auditors,
provided that any such approvals are presented to the Audit
Committee at its next scheduled meeting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No Audit Committee member may receive any
compensation from the Company other than (i)&nbsp;directors
fees, which may be received in cash, stock options or other
in-kind consideration ordinarily available to directors,
(ii)&nbsp;a pension or other deferred compensation for prior
service that is not contingent on future service, and
(iii)&nbsp;any other regular benefits that other directors
receive. No director may serve as a member of the Audit
Committee if such director serves on the audit committees of
more than two other public companies unless the Board determines
that such simultaneous service would not impair the ability of
the director to effectively serve on the Audit Committee.
</FONT>

<P align="center"><FONT size="2">A-1
</FONT>

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<P align="left">
<B><FONT size="2">MEETINGS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee shall hold such regular or
special meetings as its members shall deem necessary or
appropriate, it being understood that the Audit Committee will
ordinarily meet quarterly in advance of the release of quarterly
financial results. In addition, the Audit Committee will
separately meet on a periodic basis with management, the
director of the internal auditing department and the independent
auditors to discuss any matters that the Audit Committee or any
of these persons or firms believe should be discussed. The Audit
Committee may request any officer or employee of the Company or
the Company&#146;s outside counsel or independent auditors to
attend a meeting of the Audit Committee or to meet with any
members of, or consultants to, the Audit Committee. Minutes of
each meeting of the Audit Committee shall be prepared and
distributed to each director of the Company after each meeting.
The operation of the Audit Committee shall be subject to the
Bylaws of the Company as in effect from time to time and
Section&nbsp;141 of the Delaware General Corporation Law.
</FONT>

<P align="left">
<B><FONT size="2">OVERSIGHT OF INDEPENDENT AUDITORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The function of the Audit Committee is oversight.
The management of the Company is responsible for the
preparation, presentation and integrity of the Company&#146;s
financial statements. Management and the internal auditing
department are responsible for maintaining appropriate
accounting and financial reporting principles and policies and
internal controls and procedures that provide for compliance
with accounting standards and applicable laws and regulations.
The independent auditors are responsible for planning and
carrying out a proper audit of the Company&#146;s annual
financial statements, reviews of the Company&#146;s quarterly
financial statements prior to the filing of each quarterly
report on Form&nbsp;10-Q, and other procedures. In fulfilling
their responsibilities hereunder, it is recognized that members
of the Audit Committee are not full-time employees of the
Company and are not, and do not represent themselves to be,
performing the functions of auditors or accountants. As such, it
is not the duty or responsibility of the Audit Committee or its
members to conduct &#147;field work&#148; or other types of
auditing or accounting reviews or procedures or to set auditor
independence standards.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The independent auditors for the Company are
accountable to the Board and the Audit Committee, as
representatives of the stockholders. The Audit Committee is
directly responsible for the appointment, compensation and
oversight of the work of the independent auditors (including
resolving disagreements between management and the auditors
regarding financial reporting). The Audit Committee has the
authority and responsibility to appoint, retain and terminate
the Company&#146;s independent auditors. The Company&#146;s
independent auditors shall report directly to the Audit
Committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The independent auditors shall submit to the
Audit Committee annually a formal written statement (the
&#147;Auditors&#146; Statement&#148;) describing the
auditors&#146; internal quality-control procedures any material
issues raised by the most recent internal quality control review
or peer review of the auditors, or by any inquiry or
investigation by governmental or professional authorities,
within the preceding five years, respecting one or more
independent audits carried out by the auditors, and any steps
taken to deal with any such issues, and (to assess the
auditors&#146; independence) all relationships between the
independent auditors and the Company, including each non-audit
service provided to the Company and the matters set forth in the
Independence Standards Board No.&nbsp;1.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The independent auditors shall submit to the
Audit Committee annually a formal written statement of the fees
billed for the following categories of services rendered by the
independent auditors: (i)&nbsp;the audit of the Company&#146;s
annual financial statements for the most recent fiscal year and
the reviews of the annual financial statements included in the
Company&#146;s Quarterly Reports on Form&nbsp;10-Q for that
fiscal year; (ii)&nbsp;information technology consulting
services for the most recent fiscal year, in the aggregate and
by each service (and separately identifying fees for such
services relating to financial information systems design and
implementation); and (iii)&nbsp;all other services rendered by
the independent auditors for the most recent fiscal year, in the
aggregate and by each service.
</FONT>

<P align="center"><FONT size="2">A-2
</FONT>

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<P align="left">
<B><FONT size="2">DUTIES AND POWERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In fulfilling its responsibilities, the Audit
Committee believes that its functions and procedures should
remain flexible in order to address changing conditions most
effectively. To carry out its purposes and to implement the
policy of the Audit Committee, the Audit Committee shall have
the following responsibilities, duties and powers:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">With
respect to independent auditors,
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;</FONT></B><FONT size="2">Decide
whether to appoint, retain or terminate the Company&#146;s
independent auditors, including sole authority to approve all
audit engagement fees and terms, including scope, extent and
procedures of the audit and the compensation to be paid
therefore, and to pre-approve all audit and non-audit services
to be provided by the independent auditors and to consider
whether the outside auditors&#146; provision of non-audit
services to the Company is compatible with maintaining the
independence of the outside auditors. The Audit Committee shall
monitor and evaluate the auditors&#146; qualifications,
performance and independence on an ongoing basis, and shall be
directly responsible for overseeing the work of the independent
auditors (including resolving disagreements between management
and the auditor regarding financial reporting). In conducting
such evaluations, the Audit Committee shall:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="3%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Evaluate, together with the Board, the
    qualifications, performance, and independence of the independent
    auditors and the lead audit partner and, if so determined by the
    Audit Committee, to recommend that the Board replace the
    independent auditors or the lead partner;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Review the opinions of management and the
    Company&#146;s internal auditors in assessing the independent
    auditor&#146;s qualifications, performance and independence;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Discuss with management the timing and process
    for implementing the rotation of the lead audit partner and the
    reviewing partner, which rotation must occur not less than once
    every five years, and consider whether there should be a regular
    rotation of the audit firm itself; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Ensure that the independent auditors prepare and
    deliver annually the Auditor&#146;s Statement (it being
    understood that the independent auditors are responsible for the
    accuracy and completeness of the Statement) and review such
    statement, and discuss with the independent auditors any
    relationships or services disclosed (such as the provision of
    information technology consulting services and other non-audit
    related services) in the statement that may impact the quality
    of the audit services or the objectivity and independence of the
    Company&#146;s independent auditors, and ensure that the
    statement delineates all relationships between the auditors and
    the Company and any other items that may be required by
    Independence Standards Board Standard No.&nbsp;1;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;</FONT></B><FONT size="2">Review,
upon completion of the audit, the financial statements to be
included in the Company&#146;s Annual Report on<BR>Form&nbsp;10-K;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;</FONT></B><FONT size="2">Confer with
the independent auditors and with the senior management of the
Company regarding the scope, adequacy and effectiveness of
internal accounting and financial reporting controls in effect;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;</FONT></B><FONT size="2">Instruct
the independent auditors that the independent auditors are
ultimately accountable to the Board and the Audit Committee, as
representatives of the stockholders;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;</FONT></B><FONT size="2">Discuss
with the independent auditors the results of the annual audit,
including the auditors&#146; assessment of the quality and
conservatism, not just acceptability, of accounting principles,
the reasonableness of significant judgments, the nature of
significant risks and exposures, the adequacy of the disclosures
in the financial statements and any other matters required to be
communicated to the Audit Committee by the independent auditors
under generally accepted accounting standards;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(f)&nbsp;</FONT></B><FONT size="2">Obtain from
the independent auditors in connection with any audit a timely
report relating to the Company&#146;s annual audited financial
statements describing all critical accounting policies and
practices to be
</FONT>

<P align="center"><FONT size="2">A-3
</FONT>

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<DIV align="left">
<FONT size="2">used, all alternative treatments of financial
information within generally accepted accounting principles that
have been discussed with management, ramifications of the use of
such alternative disclosures and treatments, and the treatment
preferred by the independent auditors, and any material written
communications between the independent auditors and management,
such as any &#147;management&#148; letter or schedule of
unadjusted differences; and
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(g)&nbsp;</FONT></B><FONT size="2">Review and
approve any exceptions made to the Company conflict of interest
policy involving directors or executive staff members.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">With
respect to the internal accounting department,
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;</FONT></B><FONT size="2">Evaluate
the cooperation received by the independent auditors during
their audit examination, including any restrictions on the scope
of their activities or access to required records, data and
information;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;</FONT></B><FONT size="2">As
necessary, review the appointment or replacement of the chief
accounting officer; and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;</FONT></B><FONT size="2">Advise the
chief accounting officer that he or she is expected to provide
the Audit Committee summaries of and, as appropriate, the
significant reports to management prepared by the internal
auditing department and management&#146;s responses thereto.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">With
respect to financial reporting principles and polices and
internal audit controls and procedures,
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;</FONT></B><FONT size="2">Consider
any reports or communications (and management&#146;s and/or the
internal audit department&#146;s responses thereto) submitted to
the Audit Committee by the independent auditors required by or
referred to in SAS&nbsp;61 (as codified by AU Section&nbsp;380),
as it may be modified or supplemented, including reports and
communications related to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="3%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">deficiencies noted in the audit in the design or
    operation of internal controls;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">consideration of fraud in a financial statement
    audit;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">detection of illegal acts;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the independent auditors&#146; responsibility
    under generally accepted auditing standards;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any restriction on audit scope;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">significant accounting policies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">significant issues discussed with the national
    office respecting auditing or accounting issues presented by the
    engagement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">management judgments and accounting estimates;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any accounting adjustments arising from the audit
    that were noted or proposed by the auditors but were passed (as
    immaterial or otherwise);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the responsibility of the independent auditors
    for other information in documents containing audited financial
    statements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">disagreements with management;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">consultation by management with other accountants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">major issues discussed with management prior to
    retention of the independent auditors;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">A-4
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="3%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">difficulties encountered with management in
    performing the audit;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the independent auditors&#146; judgments about
    the quality of the entity&#146;s accounting principles;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">reviews of interim financial information
    conducted by the independent auditors; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the responsibilities, budget and staffing of the
    Company&#146;s internal audit function;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;</FONT></B><FONT size="2">Confer with
the independent auditors, the internal audit team and senior
management in separate executive sessions to discuss any matters
that the Audit Committee, the independent auditors, the internal
audit team or senior management believe should be discussed
privately with the Audit Committee;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;</FONT></B><FONT size="2">Review with
the Company&#146;s General Counsel any significant legal,
compliance or regulatory matters that could have a material
impact on the Company&#146;s financial statements or the
Company&#146;s business, financial statements or compliance
policies, including material notices to or inquiries received
from governmental agencies;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;</FONT></B><FONT size="2">Establish
procedures for the receipt, retention and treatment of
complaints received by the Company regarding accounting,
internal accounting controls or auditing matters, and for the
confidential, anonymous submission by Company employees of
concerns regarding questionable accounting or auditing matters;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;</FONT></B><FONT size="2">Investigate
any matter brought to the attention of the Audit Committee
within the scope of its duties, with the power to retain outside
counsel and a separate accounting firm for this purpose if, in
the judgment of the Audit Committee, such investigation or
retention is necessary or appropriate;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(f)&nbsp;</FONT></B><FONT size="2">Discuss the
types of financial information and earnings guidance, and the
types if presentations made, to analysts and rating agencies;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(g)&nbsp;</FONT></B><FONT size="2">Establish
hiring policies for employees and former employees of the
independent auditors. These policies shall provide that no
former employee of the independent auditors may become the Chief
Executive Officer, Chief Financial Officer, Vice President of
Internal Audit, Chief Accounting Officer or Controller (or serve
in a similar capacity) if such person participated in any
capacity in the Company&#146;s audit within the one-year period
preceding the date of the initiation of the audit;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(h)&nbsp;</FONT></B><FONT size="2">Review the
appointment and replacement of the senior internal auditing
executive who shall report to the Audit Committee;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;</FONT></B><FONT size="2">Determine
the compensation for the senior internal auditing executive;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(j)&nbsp;</FONT></B><FONT size="2">Discuss
with the independent auditor and management the internal audit
department responsibilities, budget and staffing and any
recommendations regarding the internal audit;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(k)&nbsp;</FONT></B><FONT size="2">Review the
significant reports to management prepared by the internal
auditing department and management&#146;s responses; and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(l)&nbsp;</FONT></B><FONT size="2">Discuss
earnings press releases.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">With
respect to reporting and recommendations,
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;</FONT></B><FONT size="2">Prepare the
report and any other disclosures required by the rules of the
SEC to be included in the Company&#146;s annual proxy statement;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;</FONT></B><FONT size="2">Review and
assess the adequacy of this charter annually and recommend any
proposed changes to the Board for approval;
</FONT>

<P align="center"><FONT size="2">A-5
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;</FONT></B><FONT size="2">Prepare and
review with the Board an annual performance evaluation of the
Audit Committee, which evaluation must compare the performance
of the Audit Committee with the requirements of this Charter.
The performance evaluation shall be conducted in such a manner,
as the Audit Committee deems appropriate. Any member of the
Audit Committee may present the evaluation to the Board either
orally or in writing;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;</FONT></B><FONT size="2">Report to
the Board of Directors on a regular basis and from time to time
or whenever it shall be called upon to do so and to make such
recommendations with respect to the above and other matters as
the Audit Committee may deem necessary or appropriate;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;</FONT></B><FONT size="2">Consider
any reports submitted by the independent auditors required by
any applicable law or regulation;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(f)&nbsp;</FONT></B><FONT size="2">Meet with
management, the independent auditors and, if appropriate, the
chief accounting officer to discuss: the scope of the annual
audit, the audited financial statements and quarterly financial
statements including the Company&#146;s disclosures under
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148;; any significant
matters arising from any audit, including any audit problems or
difficulties, whether raised by management, the internal
auditing department or the independent auditors, relating to the
Company&#146;s financial statements; any audit problems or
difficulties, including any restrictions on the scope of the
independent auditors&#146; activities or access to requested
information, and any significant disagreements with management;
any &#147;management letter&#148; or &#147;internal
control&#148; letter issued, or proposed to be issued; any major
issues regarding accounting principles and financial statement
presentations, including any significant changes to the
Company&#146;s auditing and accounting principles, policies,
controls, procedures and practices, and major issues as to the
adequacy of the Company&#146;s internal controls and any special
audit steps adopted in light of material control deficiencies;
analyses prepared by management and/or the independent auditors
setting forth significant financial reporting issues and
judgments made in connection with the preparation of the
financial statements, including analyses of the effects of
alternative GAAP methods on the financial statements; and the
effect of regulatory and accounting initiatives, as well as
off-balance sheet structures, on the financial statements of the
Company;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(g)&nbsp;</FONT></B><FONT size="2">Inquire of
the Company&#146;s chief executive officer and chief financial
officer as to the existence of any significant deficiencies in
the design or operation of internal controls that could
adversely affect the Company&#146;s ability to record, process,
summarize and report financial data, any material weaknesses in
internal controls, and any fraud, whether or not material, that
involves management or other employees who have a significant
role in the Company&#146;s internal controls; and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(h)&nbsp;</FONT></B><FONT size="2">Obtain from
the independent auditors assurance that the audit was conducted
in accordance with Section&nbsp;10A of the Securities Exchange
Act of 1934, as amended.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">Perform
such other functions and to have such powers as may be necessary
or appropriate in the efficient and lawful discharge of the
foregoing.
</FONT>

<P align="left">
<B><FONT size="2">RESOURCES AND AUTHORITY OF THE AUDIT
COMMITTEE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee shall have the resources and
authority appropriate to discharge its duties and
responsibilities, including the authority to select, retain,
terminate, and approve the fees and other retention terms of
special counsel or independent counsel or other experts and
advisors, as it deems necessary or appropriate, without seeking
approval of the Board or management.
</FONT>

<P align="center"><FONT size="2">A-6
</FONT>

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<DIV align="right">
<B><FONT size="2">APPENDIX&nbsp;B</FONT></B>
</DIV>

<P align="center">
<B>eBay Inc.</B>

<P align="center">
<B><FONT size="2">2001 EQUITY INCENTIVE PLAN, AS
AMENDED</FONT></B>

<P align="center">
<B><FONT size="2">INITIAL STOCKHOLDER APPROVAL ON MAY 25,
2001</FONT></B>

<DIV align="center">
<B><FONT size="2">AMENDMENT ADOPTED BY THE BOARD OF DIRECTORS ON
MARCH 14, 2002</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">STOCKHOLDER APPROVAL OF AMENDMENT ON JUNE 5,
2002</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">AMENDMENT ADOPTED BY THE BOARD OF DIRECTORS ON
MARCH 18, 2003</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">TERMINATION DATE: MARCH 21, 2011</FONT></B>

<P align="left">
<B><FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PURPOSES.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Eligible Option Recipients.
</FONT></B><FONT size="2">The persons eligible to receive
Options are the Employees, Directors and Consultants of the
Company and its Affiliates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Available Options.
</FONT></B><FONT size="2">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)&nbsp;Incentive Stock Options
and (ii)&nbsp;Nonstatutory Stock Options.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;General Purpose.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;<I>&#147;Affiliate&#148;</I></FONT></B><FONT size="2">
means any parent corporation or subsidiary corporation of the
Company, whether now or hereafter existing, as those terms are
defined in Sections&nbsp;424(e) and (f), respectively, of the
Code, and any other entity which is controlled, directly or
indirectly, by the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;<I>&#147;Board&#148;
</I></FONT></B><FONT size="2">means the Board of Directors of
the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;<I>&#147;Code&#148;
</I></FONT></B><FONT size="2">means the United States Internal
Revenue Code of 1986, as amended.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;<I>&#147;Committee&#148;
</I></FONT></B><FONT size="2">means a committee of one or more
members of the Board appointed by the Board in accordance with
subsection&nbsp;3(c).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;<I>&#147;Common Stock&#148;
</I></FONT></B><FONT size="2">means the common stock of the
Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(f)&nbsp;<I>&#147;Company&#148;
</I></FONT></B><FONT size="2">means eBay Inc., a Delaware
corporation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(g)&nbsp;<I>&#147;Consultant&#148;</I></FONT></B><FONT size="2">
means any person, whether a natural person or an entity (subject
to the provisions of subsection&nbsp;5(e)), including an
advisor, (i)&nbsp;engaged by the Company or an Affiliate to
render consulting or advisory services and compensated for such
services, or (ii)&nbsp;who is a member of the Board of Directors
or comparable governing body of an Affiliate. However, the term
&#147;Consultant&#148; shall not include either Directors who
are not compensated by the Company for their services as
Directors or Directors who are merely paid a director&#146;s fee
by the Company for their services as Directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(h)&nbsp;<I>&#147;Continuous Service&#148;
</I></FONT></B><FONT size="2">means that the Optionholder&#146;s
service with the Company or an Affiliate, whether as an
Employee, Director or Consultant, is not interrupted or
terminated. The Optionholder&#146;s
</FONT>

<P align="center"><FONT size="2">B-1
</FONT>

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<DIV align="left">
<FONT size="2">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&#146;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&#146;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.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;<I>&#147;Covered Employee&#148;
</I></FONT></B><FONT size="2">means the chief executive officer
and the four (4)&nbsp;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&nbsp;162(m) of the Code.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(j)&nbsp;<I>&#147;Director&#148;
</I></FONT></B><FONT size="2">means a member of the Board of
Directors of the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(k)&nbsp;<I>&#147;Disability&#148;</I></FONT></B><FONT size="2">
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)&nbsp;months.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(l)&nbsp;<I>&#147;Employee&#148;
</I></FONT></B><FONT size="2">means any person employed for tax
purposes by the Company or an Affiliate. Mere service as a
Director or payment of a director&#146;s fee by the Company or
an Affiliate shall not be sufficient to constitute
&#147;employment&#148; by the Company or an Affiliate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(m)&nbsp;<I>&#147;Exchange Act&#148;
</I></FONT></B><FONT size="2">means the United States Securities
Exchange Act of 1934, as amended.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(n)&nbsp;<I>&#147;Fair Market Value&#148;
</I></FONT></B><FONT size="2">means, as of any date, the value
of the Common Stock determined as follows:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">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 <I>The Wall Street Journal
</I>or such other source as the Board deems reliable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">In
the absence of such markets for the Common Stock, the Fair
Market Value shall be determined in good faith by the Board.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(o)&nbsp;<I>&#147;Incentive Stock Option&#148;
</I></FONT></B><FONT size="2">means an Option intended to
qualify as an incentive stock option within the meaning of
Section&nbsp;422 of the Code and the regulations promulgated
thereunder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(p)&nbsp;<I>&#147;Non-Employee Director&#148;
</I></FONT></B><FONT size="2">means a Director who either
(i)&nbsp;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&nbsp;404(a) of
Regulation&nbsp;S-K promulgated pursuant to the Securities Act
(&#147;Regulation&nbsp;S-K&#148;)), does not possess an interest
in any other transaction as to which disclosure would be
required under Item&nbsp;404(a) of Regulation&nbsp;S-K and is
not engaged in a business relationship as to which disclosure
would be required under Item&nbsp;404(b) of Regulation&nbsp;S-K;
or (ii)&nbsp;is otherwise considered a &#147;non-employee
director&#148; for purposes of Rule&nbsp;16b-3.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(q)&nbsp;<I>&#147;Nonstatutory Stock
Option&#148; </I></FONT></B><FONT size="2">means an Option not
intended to qualify as an Incentive Stock Option.
</FONT>

<P align="center"><FONT size="2">B-2
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(r)&nbsp;<I>&#147;Officer&#148;
</I></FONT></B><FONT size="2">means a person who is an officer
of the Company within the meaning of Section&nbsp;16 of the
Exchange Act and the rules and regulations promulgated
thereunder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(s)&nbsp;<I>&#147;Option&#148;
</I></FONT></B><FONT size="2">means an Incentive Stock Option or
a Nonstatutory Stock Option granted pursuant to Section&nbsp;6
of the Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(t)&nbsp;<I>&#147;Option Agreement&#148;
</I></FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(u)&nbsp;<I>&#147;Optionholder&#148;
</I></FONT></B><FONT size="2">means a person to whom an Option
is granted pursuant to the Plan or, if applicable, such other
person who holds an outstanding Option.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(v)&nbsp;<I>&#147;Outside Director&#148;
</I></FONT></B><FONT size="2">means a Director who either
(i)&nbsp;is not a current employee of the Company or an
&#147;affiliated corporation&#148; (within the meaning of
Treasury Regulations promulgated under Section&nbsp;162(m) of
the Code), is not a former employee of the Company or an
&#147;affiliated corporation&#148; receiving compensation for
prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an
&#147;affiliated corporation&#148; at any time and is not
currently receiving direct or indirect remuneration from the
Company or an &#147;affiliated corporation&#148; for services in
any capacity other than as a Director or (ii)&nbsp;is otherwise
considered an &#147;outside director&#148; for purposes of
Section&nbsp;162(m) of the Code.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(w)&nbsp;<I>&#147;Plan&#148;
</I></FONT></B><FONT size="2">means this eBay Inc. 2001 Equity
Incentive Plan, as amended.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(x)&nbsp;<I>&#147;Rule&nbsp;16b-3&#148;
</I></FONT></B><FONT size="2">means Rule&nbsp;16b-3 promulgated
under the Exchange Act or any successor to Rule&nbsp;16b-3, as
in effect from time to time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(y)&nbsp;<I>&#147;Securities Act&#148;
</I></FONT></B><FONT size="2">means the United States Securities
Act of 1933, as amended.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(z)&nbsp;<I>&#147;Ten Percent
Stockholder&#148; </I></FONT></B><FONT size="2">means a person
who owns (or is deemed to own pursuant to Section&nbsp;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.
</FONT>

<P align="left">
<B><FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATION.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Administration by Board.
</FONT></B><FONT size="2">The Board shall administer the Plan
unless and until the Board delegates administration to a
Committee, as provided in subsection&nbsp;3(c).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Powers of Board.
</FONT></B><FONT size="2">The Board shall have the power,
subject to, and within the limitations of, the express
provisions of the Plan:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(iii)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">To
amend the Plan or an Option as provided in Section&nbsp;11.
</FONT>

<P align="center"><FONT size="2">B-3
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;Delegation to Committee.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General.
</FONT></B><FONT size="2">The Board may delegate administration
of the Plan to a Committee or Committees of one (1)&nbsp;or more
members of the Board, and the term &#147;Committee&#148; 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)&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Committee
Composition when Common Stock is Publicly Traded.
</FONT></B><FONT size="2">At such time as the Common Stock is
publicly traded, in the discretion of the Board, a Committee may
consist solely of two (2)&nbsp;or more Outside Directors, in
accordance with Section&nbsp;162(m) of the Code, and/or solely
of two or more Non-Employee Directors, in accordance with
Rule&nbsp;16b-3. Within the scope of such authority, the Board
or the Committee may (1)&nbsp;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)&nbsp;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)&nbsp;not persons with respect to whom
the Company wishes to comply with Section&nbsp;162(m) of the
Code and/or (2)&nbsp;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&nbsp;16 of the Exchange Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;Effect of Board&#146;s Decision.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARES
SUBJECT TO THE PLAN.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Share Reserve.
</FONT></B><FONT size="2">Subject to the provisions of
Section&nbsp;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 Thirty-Nine Million
(39,000,000) shares of Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Reversion of Shares to the Share
Reserve</FONT></B><FONT size="2">. 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&nbsp;6(c) below, only the net number of additional
shares issued to the Optionholder shall be deducted from the
share reserve.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;Source of Shares.
</FONT></B><FONT size="2">The shares of Common Stock subject to
the Plan may be unissued shares or reacquired shares, bought on
the market or otherwise.
</FONT>

<P align="left">
<B><FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELIGIBILITY.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Eligibility for Specific
Options</FONT></B><FONT size="2">. Incentive Stock Options may
be granted only to Employees. Nonstatutory Stock Options may be
granted to Employees, Directors and Consultants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Non-Employee Directors.
</FONT></B><FONT size="2">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
</FONT>

<P align="center"><FONT size="2">B-4
</FONT>

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<DIV align="left">
<FONT size="2">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.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;Ten Percent Stockholders.
</FONT></B><FONT size="2">Notwithstanding the provisions of
subsection&nbsp;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)&nbsp;years from the date of grant.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;Section&nbsp;162(m) Limitation.
</FONT></B><FONT size="2">Notwithstanding the provisions of
subsection&nbsp;5(a) hereof and subject to the provisions of
Section&nbsp;10 relating to adjustments upon changes in the
shares of Common Stock, no Employee shall be eligible to be
granted Options covering more than One Million (1,000,000)
shares of Common Stock during any calendar year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;Consultants.
</FONT></B><FONT size="2">Notwithstanding the provisions of
subsection&nbsp;5(a) hereof, a Consultant shall not be eligible
for the grant of an Option if, at the time of grant, a
Form&nbsp;S-8 Registration Statement under the Securities Act
(&#147;Form&nbsp;S-8&#148;) is not available to register either
the offer or the sale of the Company&#146;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&nbsp;S-8, unless the Company
determines both (i)&nbsp;that such grant (A)&nbsp;shall be
registered in another manner under the Securities Act (<I>e.g.,
</I>on a Form&nbsp;S-3 Registration Statement) or (B)&nbsp;does
not require registration under the Securities Act in order to
comply with the requirements of the Securities Act, if
applicable, and (ii)&nbsp;that such grant complies with the
securities laws of all other relevant jurisdictions.
</FONT>

<P align="left">
<B><FONT size="2">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPTION
PROVISIONS.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Term.
</FONT></B><FONT size="2">Subject to the provisions of
subsection&nbsp;5(c) regarding Ten Percent Stockholders, no
Option shall be exercisable after the expiration of
ten&nbsp;(10) years from the date it was granted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Exercise Price.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">Subject
to the provisions of subsection&nbsp;5(c) regarding Ten Percent
Stockholders and subsections&nbsp;6(b)(ii) and 6(b)(iii) 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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">A
Nonstatutory Stock Option may be granted with an exercise price
not less than eighty-five percent (85%) of the Fair Market Value
of the Common Stock subject to the Option on the date the Option
is granted if such discount from Fair Market Value is expressly
granted in lieu of a reasonable amount of salary or a cash bonus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">An
Option may be granted with an exercise price lower than that set
forth in subsection&nbsp;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&nbsp;424(a) of the
Code.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;Consideration.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">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)&nbsp;in cash at the time the Option
is
</FONT>

<P align="center"><FONT size="2">B-5
</FONT>

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<DIV align="left">
<FONT size="2">exercised or (ii)&nbsp;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)&nbsp;by delivery to
the Company, or attestation to the Company of ownership, of
other Common Stock or (2)&nbsp;in any other form of legal
consideration that may be acceptable to the Board.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">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)&nbsp;months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting
purposes).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;Transferability of an Incentive Stock
Option. </FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;Transferability of a Nonstatutory
Stock Option. </FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(f)&nbsp;Vesting Generally.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(g)&nbsp;Termination of Continuous Service.
</FONT></B><FONT size="2">In the event an Optionholder&#146;s
Continuous Service terminates (other than upon the
Optionholder&#146;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)&nbsp;the date three&nbsp;(3) months following the
termination of the Optionholder&#146;s Continuous Service (or
such longer or shorter period specified in the Option
Agreement), or (ii)&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(h)&nbsp;Extension of Termination Date.
</FONT></B><FONT size="2">An Optionholder&#146;s Option
Agreement may also provide that if the exercise of the Option
following the termination of the Optionholder&#146;s Continuous
Service (other than upon the Optionholder&#146;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)&nbsp;the expiration
of the term of the Option or (ii)&nbsp;the expiration of a
period of three&nbsp;(3) months after the termination of the
Optionholder&#146;s Continuous Service during which the exercise
of the Option would not be in violation of such registration
requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(i)&nbsp;Disability of Optionholder.
</FONT></B><FONT size="2">In the event that an
Optionholder&#146;s Continuous Service terminates as a result of
the Optionholder&#146;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 ending on the
earlier of (i)&nbsp;the date twelve&nbsp;(12) months following
such termination (or such longer or shorter period specified in
the Option Agreement), or (ii)&nbsp;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.
</FONT>

<P align="center"><FONT size="2">B-6
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(j)&nbsp;Death of Optionholder.
</FONT></B><FONT size="2">In the event (i)&nbsp;an
Optionholder&#146;s Continuous Service terminates as a result of
the Optionholder&#146;s death or (ii)&nbsp;the Optionholder dies
within the period (if any) specified in the Option Agreement
after the termination of the Optionholder&#146;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&#146;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&#146;s
death, but only within the period ending on the earlier of
(1)&nbsp;the date eighteen&nbsp;(18) months following the date
of death (or such longer or shorter period specified in the
Option Agreement) or (2)&nbsp;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.
</FONT>

<P align="left">
<B><FONT size="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COVENANTS
OF THE COMPANY.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Availability of Shares.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Securities Law Compliance.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;USE
OF PROCEEDS FROM STOCK.</FONT></B>

<P align="left">
<FONT size="2">Proceeds from the sale of Common Stock pursuant
to Options shall constitute general funds of the Company.
</FONT>

<P align="left">
<B><FONT size="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MISCELLANEOUS.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Stockholder Rights.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;No Employment or other Service
Rights. </FONT></B><FONT size="2">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)&nbsp;the employment of an
Employee with or without notice and with or without cause, for
any reason or no reason, (ii)&nbsp;the service of a Consultant
pursuant to the terms of such Consultant&#146;s agreement with
the Company or an Affiliate or (iii)&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;Incentive Stock Option $100,000
Limitation. </FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;Investment Assurances.
</FONT></B><FONT size="2">The Company may require an
Optionholder, as a condition of exercising an Option or
acquiring Common Stock under any Option, (i)&nbsp;to give
written assurances satisfactory to the Company as to the
Optionholder&#146;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,
</FONT>

<P align="center"><FONT size="2">B-7
</FONT>

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<DIV align="left">
<FONT size="2">the merits and risks of exercising the Option;
(ii)&nbsp;to give written assurances satisfactory to the Company
stating that the Optionholder is acquiring Common Stock subject
to the Option for the Optionholder&#146;s own account and not
with any present intention of selling or otherwise distributing
the Common Stock; and/or (iii)&nbsp;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.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;Withholding Obligations.
</FONT></B><FONT size="2">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&#146;s right
to withhold from any compensation paid to the Optionholder by
the Company) or by a combination of such means:
(i)&nbsp;tendering a cash payment; (ii)&nbsp;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)&nbsp;delivering to
the Company owned and unencumbered shares of Common Stock.
</FONT>

<P align="left">
<B><FONT size="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADJUSTMENTS
UPON CHANGES IN STOCK.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Capitalization Adjustments.
</FONT></B><FONT size="2">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&nbsp;4(a) and the maximum number of
securities subject to award to any person pursuant to
subsection&nbsp;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 &#147;without receipt of
consideration&#148; by the Company.)
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Dissolution or Liquidation.
</FONT></B><FONT size="2">In the event of a dissolution or
liquidation of the Company, then all outstanding Options shall
terminate immediately prior to such event.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;Corporate Transaction.
</FONT></B><FONT size="2">In the event of (i)&nbsp;a sale, lease
or other disposition of all or substantially all of the assets
of the Company, (ii)&nbsp;a merger or consolidation in which the
Company is not the surviving corporation, or (iii)&nbsp;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&nbsp;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 Options outstanding under the Plan, such
Options shall terminate if not exercised (if applicable) at or
prior to such event.
</FONT>

<P align="center"><FONT size="2">B-8
</FONT>

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<P align="left">
<B><FONT size="2">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMENDMENT
OF THE PLAN AND OPTIONS.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Amendment of Plan.
</FONT></B><FONT size="2">The Board at any time, and from time
to time, may amend the Plan. However, except as provided in
Section&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;Stockholder Approval.
</FONT></B><FONT size="2">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&nbsp;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)&nbsp;reduce the exercise price of any outstanding
Option under the Plan, (B)&nbsp;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)&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(c)&nbsp;Contemplated Amendments.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(d)&nbsp;No Impairment of Rights.
</FONT></B><FONT size="2">Rights under any Option granted before
amendment of the Plan shall not be impaired by any amendment of
the Plan unless (i)&nbsp;the Company requests the consent of the
Optionholder and (ii)&nbsp;the Optionholder consents in writing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(e)&nbsp;Amendment of Options.
</FONT></B><FONT size="2">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)&nbsp;the Company
requests the consent of the Optionholder and (ii)&nbsp;the
Optionholder consents in writing.
</FONT>

<P align="left">
<B><FONT size="2">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION
OR SUSPENSION OF THE PLAN.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(a)&nbsp;Plan Term.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">(b)&nbsp;No Impairment of Rights.
</FONT></B><FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EFFECTIVE
DATE OF PLAN.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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&nbsp;(12) months before or after
the date the Plan is adopted by the Board.
</FONT>

<P align="left">
<B><FONT size="2">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHOICE
OF LAW.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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&#146;s
conflict of laws rules.
</FONT>

<P align="center"><FONT size="2">B-9
</FONT>

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<P align="right">
<B><FONT size="2">APPENDIX&nbsp;C</FONT></B>

<P align="center">
<B><FONT size="4">eBay Inc.</FONT></B>

<P align="center">
<B>2003 DEFERRED STOCK UNIT PLAN</B>

<P align="center">
<B>ARTICLE I</B>

<P align="center">
<B>GENERAL</B>

<P align="left">
<B>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PURPOSE</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS
OF CERTAIN TERMS</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;eBay&#148;</FONT></I></B><FONT size="2">
    means eBay Inc. or a successor entity contemplated by
    Section&nbsp;3.5.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Award&#148;</FONT></I></B><FONT size="2">
    means an award made pursuant to the Plan.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Award
    Agreement&#148;</FONT></I></B><FONT size="2"> means the written
    document by which each Award is evidenced.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Board&#148;</FONT></I></B><FONT size="2">
    means the Board of Directors of eBay.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Code&#148;</FONT></I></B><FONT size="2">
    means the Internal Revenue Code of 1986, as amended from time to
    time, and the applicable rulings and regulations thereunder.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Committee&#148;</FONT></I></B><FONT size="2">
    means the committee established pursuant to Section&nbsp;1.3.1.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Common
    Stock&#148;</FONT></I></B><FONT size="2"> means the common stock
    of eBay, par value $0.001 per share.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Company&#148;</FONT></I></B><FONT size="2">
    means eBay and its subsidiaries.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Exchange
    Act&#148;</FONT></I></B><FONT size="2"> means the Securities
    Exchange Act of 1934, as amended from time to time, and the
    applicable rules and regulations thereunder.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Fair Market
    Value&#148;</FONT></I></B><FONT size="2"> means, as of any date,
    the value of a share of Common Stock determined as follows:
    (a)&nbsp;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 <I>The Wall Street
    Journal</I>; (b)&nbsp;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 <I>The Wall Street Journal</I>; (c)&nbsp;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 <I>The Wall
    Street Journal</I>; and (d)&nbsp;if none of the foregoing is
    applicable, then the value determined by the Committee in good
    faith.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;New
    Director&#148;</FONT></I></B><FONT size="2"> shall have the
    meaning set forth in Section&nbsp;1.4.1.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">C-1
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><I><FONT size="2">&#147;Plan&#148;</FONT></I></B><FONT size="2">
    means the eBay Inc. 2003 Deferred Stock Unit Plan, as described
    herein and as hereafter amended from time to time.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as otherwise provided herein, the Plan shall be administered by
the Compensation Committee of the Board (the
<B><I>&#147;Committee&#148;</I></B>). 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)&nbsp;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&#146;s circumstances and
(ii)&nbsp;determine whether, to what extent and under what
circumstances and method or methods (A)&nbsp;Awards may be
(1)&nbsp;settled in cash, shares of Common Stock, other
securities, other Awards or other property or (2)&nbsp;canceled,
forfeited or suspended, (B)&nbsp;shares of Common Stock, other
securities, other Awards or other property, and other amounts
payable with respect to an Award may be deferred at the election
of the grantee thereof with the consent of the Committee or at
the election of the Committee and (C)&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</FONT>

<P align="left">
<B><FONT size="2">1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PERSONS
ELIGIBLE FOR AWARDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards
under the Plan shall be made to each new member of the Board
upon the earlier of (i)&nbsp;their election to service as a
member of the Board after December&nbsp;31, 2002; and
(ii)&nbsp;the adoption of this plan by the stockholders (a
&#147;New Director&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards
under the Plan may also be made to such officers and employees
(including prospective employees) of the Company as the
Committee may select.
</FONT>

<P align="left">
<B><FONT size="2">1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TYPES
OF AWARDS UNDER PLAN</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Awards may be made under the Plan in the form of
(a)&nbsp;deferred stock units and (b)&nbsp;dividend equivalent
rights.
</FONT>

<P align="left">
<B><FONT size="2">1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARES
OF COMMON STOCK AVAILABLE FOR AWARDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Common
Stock Subject to the Plan.</B> Subject to adjustment as provided
in Section&nbsp;1.6.2 hereof, the maximum number of shares
underlying deferred stock units that may be reserved for
issuance are 1,000,000 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.
</FONT>

<P align="center"><FONT size="2">C-2
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Adjustments.</B>
The Committee shall have the authority (but shall not be
required) to adjust the number of shares of Common Stock
authorized pursuant to Section&nbsp;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&nbsp;1.6.2, the number of shares of Common Stock subject
to each outstanding Award shall be rounded down to the nearest
whole number.
</FONT>

<P align="center">
<B><FONT size="2">ARTICLE II</FONT></B>

<P align="center">
<B><FONT size="2">AWARDS UNDER THE PLAN</FONT></B>

<P align="left">
<B><FONT size="2">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGREEMENTS
EVIDENCING AWARDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NO
RIGHTS AS A STOCKHOLDER</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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&nbsp;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.
</FONT>

<P align="left">
<B><FONT size="2">2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GRANT
OF DEFERRED STOCK UNITS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
New Director shall receive a one-time grant of deferred stock
units equal to the result of dividing (i)&nbsp;$150,000 by
(ii)&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;1.4.2.
</FONT>

<P align="left">
<B><FONT size="2">2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GRANT
OF DIVIDEND EQUIVALENT RIGHTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee may include in the Award Agreement
with respect to any Award a dividend equivalent right entitling
the grantee to receive amounts equal to all or any portion of
the dividends that would be paid on the shares of Common Stock
covered by such Award if such shares had been delivered pursuant
to such Award. The grantee of a dividend equivalent right will
have only the rights of a general unsecured creditor of eBay
</FONT>

<P align="center"><FONT size="2">C-3
</FONT>

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<DIV align="left">
<FONT size="2">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.
</FONT>
</DIV>

<P align="center">
<B><FONT size="2">ARTICLE III</FONT></B>

<P align="center">
<B><FONT size="2">MISCELLANEOUS</FONT></B>

<P align="left">
<B><FONT size="2">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMENDMENT
OF THE PLAN</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TAX
WITHHOLDING</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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)&nbsp;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)&nbsp;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)&nbsp;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).
</FONT>

<P align="left">
<B><FONT size="2">3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REQUIRED
CONSENTS AND LEGENDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 &#147;plan action&#148;), then such plan action
shall not be taken, in whole or in part, unless and until such
consent shall have been effected or obtained to the full
satisfaction of the Committee. The Committee may direct that any
certificate evidencing shares delivered pursuant to the Plan
shall bear a legend setting forth such restrictions on
transferability as the Committee may determine to be necessary
or desirable, and may advise the transfer agent to place a stop
transfer order against any legended shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
accepting an Award, each grantee expressly provides consent to
the items described in Section&nbsp;3.3.3 below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;consent&#148; as used in this Section&nbsp;3.3.3 with
respect to any plan action includes 3.3 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, 3.4 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, 3.5 any and all other consents, clearances
and approvals in respect of a plan
</FONT>

<P align="center"><FONT size="2">C-4
</FONT>

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<DIV align="left">
<FONT size="2">action by any governmental or other regulatory
body or any stock exchange or self-regulatory agency and 3.6 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.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NONASSIGNABILITY;
NO HEDGING</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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&nbsp;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.
</FONT>

<P align="left">
<B><FONT size="2">3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUCCESSOR
ENTITY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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 (&#147;successor entity&#148;) 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.
</FONT>

<P align="left">
<B><FONT size="2">3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RIGHT
OF DISCHARGE RESERVED</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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 affect any right which the Company or
Board may have to terminate such service.
</FONT>

<P align="left">
<B><FONT size="2">3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NATURE
OF PAYMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</FONT>

<P align="left">
<B><FONT size="2">3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER
PAYMENTS OR AWARDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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.
</FONT>

<P align="center"><FONT size="2">C-5
</FONT>

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<P align="left">
<B><FONT size="2">3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLAN
HEADINGS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">3.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION
OF PLAN</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Committee reserves the right to terminate the
Plan at any time; <I>provided, however,</I> that in any case,
the Plan shall terminate on March&nbsp;17, 2013, and <I>provided
further,</I> 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.
</FONT>

<P align="left">
<B><FONT size="2">3.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GOVERNING
LAW</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">3.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVERABILITY;
ENTIRE AGREEMENT</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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;
<I>provided,</I> 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.
</FONT>

<P align="left">
<B><FONT size="2">3.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NO
THIRD PARTY BENEFICIARIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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.
</FONT>

<P align="left">
<B><FONT size="2">3.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUCCESSORS
AND ASSIGNS OF EBAY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms of this Plan shall be binding upon and
inure to the benefit of eBay and any successor entity
contemplated by Section&nbsp;3.5.
</FONT>

<P align="left">
<B><FONT size="2">3.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DATE
OF ADOPTION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Plan was adopted on March&nbsp;18, 2003 by
the Committee.
</FONT>

<P align="center"><FONT size="2">C-6
</FONT>
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<P align="center"><FONT size="2" FACE="helevtica,arial"><B>eBay Inc.</B><BR>
<B>PROXY SOLICITED BY BOARD OF DIRECTORS</B><BR>
<B>FOR THE ANNUAL MEETING OF STOCKHOLDERS</B><BR>
<B>TO BE HELD ON JUNE 26, 2003</B></FONT>

<P align="left"><FONT size="2" FACE="helevtica,arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints MARGARET C. WHITMAN, RAJIV DUTTA AND
MICHAEL R. JACOBSON, and each of them, as attorneys and proxies of the
undersigned, with full power of substitution, to vote all shares of stock of
eBay Inc. that the undersigned may be entitled to vote at the Annual Meeting
of Stockholders of eBay Inc. to be held on Thursday, June&nbsp;26, 2003, at 8:00
a.m. Eastern time at The Peabody Hotel, Plaza H, 9801 International Drive,
Orlando, Florida 32819, and at any and all continuations and adjournments of
that meeting, with all powers that the undersigned would possess if
personally present, upon and in respect of the following instructions, with
discretionary authority as to any and all other matters that may properly
come before the meeting.
</FONT>

<P align="center"><FONT size="2" FACE="helevtica,arial"><B>PLEASE VOTE, DATE AND PROMPTLY RETURN THIS PROXY IN THE ENCLOSED RETURN</B><BR>
<B>ENVELOPE THAT IS POSTAGE PREPAID IF MAILED IN THE UNITED STATES.</B></FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>
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    <TD width="55%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2" FACE="HELVITACA,ARIAL"><IMG src="f89686def8968603.gif" alt="(EBAY LOGO)"><BR>
<B><I>eBay Inc.<BR>
2145 HAMILTON AVE.<BR>
SAN JOSE, CA 95125</I></B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
<B>VOTE BY INTERNET &#151; www.proxyvote.com</B><BR>
Use the Internet to transmit your voting instructions and for electronic
delivery of information up until 11:59&nbsp;p.m. Eastern time the day before the
meeting date. Have your proxy card in hand when you access the web site. You
will be prompted to enter your 12-digit Control Number which is located below
to obtain your records and to create an electronic voting instruction form.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
<B>VOTE BY PHONE &#151; 1-800-690-6903</B><BR>
Use any touch-tone telephone to transmit your voting instructions up until
11:59&nbsp;p.m. Eastern time the day before the meeting date. Have your proxy card
in hand when you call. You will be prompted to enter your 12-digit Control
Number which is located below and then follow the simple instructions the
Vote Voice provides you.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
<B>VOTE BY MAIL</B><BR>
Mark, sign, and date your proxy card and return it in the postage-paid
envelope we have provided or return it to eBay Inc., c/o ADP, 51 Mercedes
Way, Edgewood, NY 11717.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="57%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="1" FACE="HELVITACA,ARIAL">TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="1" FACE="HELVITACA,ARIAL">
EBAY01
</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="1" FACE="HELVITACA,ARIAL">KEEP THIS PORTION FOR YOUR RECORDS</FONT></TD>
</TR>
<TR>
    <TD colspan="5" valign="top" align="left"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="1" FACE="HELVITACA,ARIAL">DETACH AND RETURN THIS PORTION ONLY</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2" FACE="HELVITACA,ARIAL"><B>THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</B></FONT>

<P align="left"><FONT size="2" FACE="HELVITACA,ARIAL"><B>eBay Inc.</B></FONT>

<P align="left"><FONT size="2" FACE="HELVITACA,ARIAL">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Vote on Directors</B>
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="96%">
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">
1.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
To elect two directors to hold office until our 2006 Annual Meeting of
Stockholders.
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL"><B>For<BR>
All</B>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL"><B>Withhold<BR>
All</B>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2" FACE="HELVITACA,ARIAL"><B>For All<BR>
Except</B></FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" face="helvitaca,arial">
Nominees: 01) Dawn G. Lepore&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;02) Pierre M. Omidyar
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
To withhold authority to vote, mark &#147;For All Except&#148; and write the nominee&#146;s
number on the line below.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
<HR size="1" width="100%" noshade></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2" FACE="HELVITACA,ARIAL">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Vote on Proposals</B></FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="96%">
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="center"><FONT size="2" FACE="HELVITACA,ARIAL"><B>For</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="center"><FONT size="2" FACE="HELVITACA,ARIAL"><B>Against</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="center"><FONT size="2" FACE="HELVITACA,ARIAL"><B>Abstain</B></FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">2.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
To approve an amendment to our 2001 Equity Incentive Plan to increase by
14,000,000 the number of shares of common stock reserved for issuance
under our 2001 Plan.
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">3.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
To approve our 2003 Deferred Stock Unit Plan.
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">4.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
To ratify the selection of PricewaterhouseCoopers LLP as our independent
auditors for our fiscal year ending December&nbsp;31, 2003.
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">5.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">
To transact such other business as may properly come before the meeting or
any adjournment or postponement of the meeting thereof.
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><FONT face="Wingdings">&#111;</FONT>
</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%">
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top"><FONT size="2">
<HR size="1" width="100%" noshade>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><HR size="1" width="100%" noshade></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">Signature &#091;PLEASE SIGN WITHIN BOX&#093;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">Date</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top"><FONT size="2">
<HR size="1" width="100%" noshade>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><HR size="1" width="100%" noshade></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">Signature (Joint Owners)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2" FACE="HELVITACA,ARIAL">Date</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">&nbsp;</FONT>




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