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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: H James Morris who wrote (3307)	4/23/1998 11:16:00 AM
From: Ed Zhao	Respond to of 164684

The following table summarizes information about options outstanding and exercisable at December 31, 1997: <TABLE> <CAPTION> OPTIONS OUTSTANDING ------------------------------------------ WEIGHTED- OPTIONS EXERCISABLE AVERAGE ---------------------------- REMAINING WEIGHTED- WEIGHTED- RANGE OF OPTIONS CONTRACTUAL AVERAGE OPTIONS AVERAGE EXERCISE PRICES OUTSTANDING LIFE EXERCISE PRICE EXERCISABLE EXERCISE PRICE - --------------- ----------- ----------- -------------- ----------- -------------- <S> <C> <C> <C> <C> <C> $ 0.001 - $ 0.332 169,964 6.3 years $ 0.172 169,964 $ 0.172 0.333 - 1.000 1,528,035 6.5 years 0.599 1,379,433 0.596 1.001 - 2.667 970,608 9.1 years 2.231 573,108 2.173 2.668 - 4.667 320,200 9.2 years 4.416 283,574 4.444 4.668 - 12.000 789,475 9.3 years 11.861 511,909 11.848 12.001 - 25.313 283,100 9.6 years 21.978 234,363 21.983 25.314 - 55.250 373,200 9.8 years 42.549 236,091 41.520 55.251 - 62.563 75,250 9.9 years 58.078 36,773 58.006 --------- --------- $ 0.001 - $62.563 4,509,832 8.2 years $ 8.949 3,425,215 $ 7.739 ========= =========

To: H James Morris who wrote (3307)	4/23/1998 11:31:00 AM
From: Ed Zhao	Read Replies (2) \| Respond to of 164684

Note that the last line, the options granted with excersing price above 50. They must be newly granted. However, although the contract life of the options are 9.9 years, about 1/2 are already excersable. Most company grant options that will not vest at least after one full year (1/3 after one full year, 1/3 after two years, and 1/3 after 3 years, for example). AMZN employees know the stock price is overvalued and they want to cash in as soon as possible. In addition, AMZN granted more than 2.5 million shares of option in 1997. At that pace, the options outstanding today could be well above 5 million shares. Balance December 31, 1996............................. 3,328,851 0.448 Options granted: At fair market value............................. 1,592,425 23.128 At less than fair market value................... 1,378,350 2.840 Options canceled.................................... (424,230) 3.195 Options exercised................................... (1,365,564) 0.380 ---------- Balance December 31, 1997............................. 4,509,832 8.949 ========== XZ