Employment Agreement - eBay Inc. and William Cobb
November 22, 2000
William Cobb
6314 Aberdeen Avenue
Dallas, TX 75230
Dear Bill:
eBay Inc. (the "Company" or "eBay") is pleased to offer you the exempt
position of Senior Vice President, Global Marketing at a salary of $11,666.67,
payable twice per MONTH, which is equivalent to an annual salary of $280,000.00.
You will also be eligible to participate in a management incentive plan
with payouts based on individual achievement as well as Company performance.
Your target bonus would be 40% of your base salary. You will also be given a
special retention bonus of $70,000 annually over the first four years of your
employment, payable on the first, second, third and fourth anniversaries of your
start date. In addition, the company may award you discretionary bonuses from
time to time.
You will be entitled to the benefits that eBay customarily makes
available to employees in positions comparable to yours and it will be
recommended to the Board of Directors that you be granted an option for the
purchase of 280,000 shares of the Company's Common Stock. The option will be
granted under the Company's Current Stock Option Plan and, assuming you remain
an employee, will vest with respect to 25% of the shares subject to the option
one year after the commencement of your employment and, at the end of each month
thereafter, with respect to an additional 1/48 of the shares subject to the
option.
eBay shall also provide you with a loan to assist you with the purchase
of a home in the Bay Area. Subject to a more detailed description to follow, we
intend to offer you a four year, non-interest bearing loan in the amount of
$840,000.00, with principal payments of $70,000 each due on the first, second
and third anniversaries of the date you commence employment, assuming your
continued employment with eBay, and a balloon payment of the remaining principal
due on the fourth anniversary of such date. This loan must be secured
(subordinate to any mortgage by a financial institution) by the home that you
purchase. In light of the subordinate nature of our loan we would expect a cash
down payment of at least 10%. Please also note that the non-interest bearing
nature of the loan will have personal tax implications.
As a condition of your employment, you must complete the "Employee
Proprietary Information and Inventions Agreement" prior to commencing
employment. In part, this Agreement requires that a departing employee refrain
unauthorized use or disclosure of eBay's confidential information (as defined in
the Agreement). This Agreement does not prevent a former employee from using
know-how and expertise in any new field or position. If you should have any
questions about the "Employee Proprietary Information and Inventions Agreement,"
please call me.
Under federal immigration laws, the Company is required to verify each
new employee's identity and legal authority to work in the United States.
Accordingly, please be prepared to furnish appropriate documents satisfying
those requirements; this offer of employment is conditioned on submission of
satisfactory documentation. Enclosed is a list of the required documents.
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We hope that you and eBay will find mutual satisfaction with your
employment. You will be subject to a 90-day introductory period beginning with
the date of your initial employment. During this time, you and eBay will have
the opportunity to evaluate your compatibility, ability and interest in the job.
At or near conclusion of the introductory period, your supervisor will conduct a
review of your performance. Your employment may be terminated at any time, with
or without cause, during or after this period, should such termination be deemed
necessary or appropriate by you or eBay.
All of us at eBay are very excited about you joining our team and look
forward to a beneficial and fruitful relationship. However, should any dispute
arise with respect to your employment or the termination of that employment, we
both agree that such dispute shall be conclusively resolved by final, binding
and confidential arbitration in accordance with the Voluntary Labor Arbitration
Rules of the American Arbitration Association (AAA) at the AAA office in San
Jose, rather than by a jury court or administrative agency. The Company will
bear all AAA administrative costs and fees of any such arbitration.
This letter and the "Employee Proprietary Information and Inventions
Agreement" contain the entire agreement with respect to your employment. The
terms of this offer may only be changed by written agreement, although the
Company may from time to time, in its sole discretion, adjust the salaries and
benefits paid to you and its other employees. Should you have any questions with
regard to any of the items indicated above, please call me. Kindly indicate your
consent to this employment agreement by signing and returning a copy of this
letter to me by the close of business on Tuesday, November 28, 2000. Please
review the "Employee Proprietary Information and Inventions Agreement" and bring
with you on your first day of employment to be signed and witnessed. This offer
is contingent upon your background, employment and educational verification.
Upon your signature below, this will become our binding agreement with respect
to your employment and its terms merging and superseding in their entirety all
other or prior agreements and communications by you and eBay as to the specific
subjects of this letter.
Very truly yours,
/s/ JEFF JORDAN
-----------------------------
Jeff Jordan
Senior Vice President, General Manager, eBay U.S.
ACCEPTED:
/s/ WILLIAM C. COBB 11/27/00
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Bill Cobb Date
Anticipated Start Date: 11/27/00