Exhibit 10.11



 



Exhibit 10.11


M E M O R A N D U M



	 	 	 	 	 
	TO:	 	
Mark Peek
	 	 
	 	 	 	 	 
	FROM:	 	
Jeff Bezos	 	 
	 	 	 	 	 
	DATE:	 	
April 19, 2002	 	 
	 	 	 	 	 
	SUBJECT:	 	
Early Payment on Bonuses	 	 



This is to confirm and memorialize our agreement as to the specific terms
governing your receipt of an early payment on your expected future bonuses in
the amount of $2,000,000 (Two Million Dollars) (the “Early Bonus”) from
Amazon.com Holdings, Inc (“Amazon.com”). As we have discussed, you will
receive the Early Bonus under the following terms (the “Agreement”):



	 	1.	 	Partial Payment Received: You have already received a bonus of
$225,000, less applicable federal and state tax withholdings, on March
1, 2002. Applying prorated credit for time worked between March 1 and
April 1, the amount of $206,250 will be treated as a partial payment of
the Early Bonus. The terms of this Agreement supercede the terms set
forth in your Bonus Letter dated March 1, 2002.
	 
	 	2.	 	Remaining Unpaid Portion: You will receive the remaining unpaid
portion of the Early Bonus ($1,793,750), less applicable federal and
state tax withholdings, on or about April 22, 2002.
	 
	 	3.	 	Term: The term of this agreement is five years, April 1, 2002,
through April 1, 2007.
	 
	 	4.	 	Bonus Earning Schedule: Although you will receive the full amount
of the Early Bonus on or about April 22, 2002, you will not earn the
entire amount of the Early Bonus for purposes of this Agreement unless
you remain actively employed with Amazon.com for the term of this
Agreement in your current position, any similar position of like rank,
status and pay, or any position to which you may be promoted. During
the term of this Agreement, you will earn the Early Bonus at a rate of
Thirty-Three Thousand, Three Hundred Thirty-Three Dollars and Thirty-Three Cents
($33,333.33 ) each month, on the anniversary date of this Agreement.



Earning Schedule:



	 	 	 	Provided that you remain actively employed with Amazon.com in your
current position, any similar position of like rank, status and
pay, or any position to which you may be promoted, the following
Earning Schedule



 







 





	 	 	 	applies:




	 	•	 	On April 1, 2003 you will have earned twelve
months at $33,333.33 ($400,000) of the Early Bonus.
$1,600,000 remains unearned.
	 
	 	•	 	On April 1, 2004, you will have earned
twenty-four months at $33,333.33 ($800,000). $1,200,000
remains unearned.
	 
	 	•	 	On April 1, 2005, you will have earned
thirty-six months at $33,333.33 ($1,200,000). $800,000
remains unearned.
	 
	 	•	 	On April 1, 2006, you will have earned
forty-eight months at $33,333.33 ($1,600,000). $400,000
remains unearned.
	 
	 	•	 	On April 1, 2007, you will have earned the
entire Early Bonus.




	 	5.	 	Repayment Obligation: Should your employment with Amazon.com
terminate for any reason before you have earned the entire Early Bonus
as set forth in paragraph 4 above, you agree to repay any remaining
unearned amount in full. For purposes of this paragraph, “terminate
for any reason” specifically includes a) all forms of voluntary and
involuntary employment terminations, with or without cause, with or
without notice, and b) death or total disability, as defined in
paragraph 6. Repayment in full will be required within sixty (60) days
of the effective date of your employment termination.
	 
	 	 	 	If you fail to repay any unearned portion of the Early Bonus within
sixty (60) days of the effective date of your termination, interest
will accrue on any unpaid amount at the rate of the then prevailing
Applicable Federal Rate (AFR) as published monthly by the Internal
Revenue Service, per annum, compounded annually. Amazon.com may
bring an action in court to recover the full amount of the unearned
portion, plus interest. If Amazon.com is the prevailing party in
such an action, it will be entitled to recover its reasonable
attorneys’ fees and other costs incurred.
	 
	 	 	 	If you exercise stock options while you are subject to a repayment
obligation under this paragraph, you agree to instruct your broker to
withhold from the proceeds, and remit to Amazon.com, a dollar amount
sufficient to satisfy your repayment obligation in full.
	 
	 	6.	 	Death or Total Disability: This Agreement, specifically including
the Repayment Obligations set forth in paragraph 5, survives your death
or total disability For purposes of this Agreement, “total disability”
means your inability (with such accommodation as may be required by law
and which places no undue burden on Amazon.com), as determined by a
physician selected by the Company and acceptable to you, to perform any
one or more



 







 




	 	 	 	of the essential duties of your current position, any similar
position of like rank, status and pay, or any position to which you
may be promoted, for a period or periods aggregating more than twelve
(12) weeks in any 365-day period as a result of physical or mental
illness or injury, loss of legal capacity or any other cause beyond
your control, unless you are granted a leave of absence. Whether you
are granted a leave of absence of more than twelve (12) weeks will be
determined in the sole discretion of the Board of Directors. The
Repayment Obligation set forth in paragraph 5 will be tolled during
any such approved leave.
	 
	 	7.	 	Insurance: You agree to procure an insurance policy within 30 days
from the date you sign this Agreement covering your death, for the full
amount of any unearned Early Bonus as that term is used in paragraph 4
above.
	 
	 	8.	 	Assignment: This Agreement is personal to you and shall not be
assigned by you. Amazon.com may assign its rights and obligations
hereunder to (a) any entity controlling, controlled by or under common
control with Amazon.com, (b) any corporation resulting from any merger,
consolidation or other reorganization to which Amazon.com or any of its
direct or indirect subsidiaries is a party, or (c) any corporation,
partnership, association or other person to which Amazon.com or any of
its direct or indirect subsidiaries may transfer all or substantially
all its assets.
	 
	 	9.	 	Entire Agreement: This Agreement constitutes the entire agreement
between you and Amazon.com with respect to the receipt and payback
obligations relating to monetary bonuses from Amazon.com; all prior or
contemporaneous oral or written communications, understandings or
agreements with respect to such subject matter, including but not
limited to those set forth in your Bonus Letter dated March 1, 2002,
are hereby superseded and nullified in their entireties.
	 
	 	10.	 	Severability: If any provision of this Agreement shall be held
invalid, illegal or unenforceable in any jurisdiction, for any reason,
then, to the full extent permitted by law, a) all other provisions
shall remain in full force and effect, b) such invalidity, illegality
or unenforceability shall not affect the validity, legality or
enforceability of any other provisions, and c) any court or arbitrator
having jurisdiction thereover shall have the power to reform such
provision to the extent necessary for such provision to be enforceable
under applicable law.
	 
	 	11.	 	Applicable Law: This Agreement shall in all respects, including
all matters of construction, validity and performance, be governed by,
and construed and enforced in accordance with the laws of the State of
Washington, without regard to any rules governing conflicts of laws.



 







 




	 	12.	 	Modification of Agreement: Any modification of this Agreement
shall be binding only if evidenced in a writing signed by each party or
an authorized representative of each party.
	 
	 	13.	 	At Will Employment: Nothing in this Agreement modifies your
employment at-will status. Either you or the Company can terminate
your employment at any time, and for any reason, with or without
notice.



ACCEPTANCE


I have read and fully understand the contents of the Agreement. I knowingly
and voluntarily agree to and accept the Early Bonus and the repayment terms set
forth above.



	 	 	 
	/s/ MARK S. PEEK


Mark Peek	 	
4-23-02



Date