Can I arrange in advance to sell my RSU shares when they vest under a 10b5-1 trading plan?
You may enter into a Rule 10b5-1 trading plan with any broker approved by Amazon.com in order to arrange for the sale of your vested RSU shares upon vesting. The terms of such plan are subject to approval of Amazon.com. Such a plan must include, in addition to the other trades, an instruction to the broker to sell at the market price on the vest date (or the first trading day after the vest date if the vest date is not a trading day) a sufficient number of vested RSU shares to generate funds to pay the estimated required tax withholding (a “tax sale”). To implement a trading plan covering RSUs to be sold upon vesting, you must notify Amazon.com Stock Administration (stock@amazon.com; phone 206-266-4241) and obtain an estimate of the number of shares that must be sold to satisfy the tax withholding. Your social security withholding obligation will be calculated at the maximum 6.2% (for 2004) regardless of whether you expect to exceed the social security maximum at the time of execution
