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This excerpt taken from the EBAY 10-K filed Feb 28, 2007. Employee
Stock-Based Incentive Plans
We continue to believe that employee stock-based incentive plans
represent an appropriate and essential component of our overall
compensation program. We grant stock-based awards to
substantially all employees and believe that this broad-based
program helps us to attract, motivate, and retain high quality
employees, to the ultimate benefit of our stockholders. We
granted a limited number of restricted stock units and
restricted stock awards to employees during 2006. Stock options,
restricted stock units and restricted stock awards granted
during the years ended December 31, 2006 and 2005, net of
cancellations/forfeitures, represented less than 2% of our total
common stock outstanding as of December 31, 2006 and 2005.
A substantial portion of our stock-based awards granted during
the year were granted to existing employees.
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