With the meltdown in tech stocks, many stock options granted in the past are 
now worthless. Some companies are making special options grants so employees 
will take more of an interest in their company's performance. Here are a few 
examples:

COMPANY       DETAILS                         WHY

Amazon.com    Granted employees new           To retain valued workers
(AMZN)        stock options in August         whose existing options
              with an exercise price          had lost most or all of
              of $30.75 after the             their value.
              stock had dropped from
              $113 in December.

Microsoft     Granted workers new options     To retain employees after
(MSFT)        in April with an exercise       a federal judge's ruling
              price of $66 after the com-     that the company had
              pany's stock had dropped        violated U.S. antitrust
              from nearly $120 in December.   law.

Sprint        After the stock fell 65% from   To compensate workers who
(FON)         its peak to $24, the company    received options at prices
              allowed employees to decide     inflated by the expecta-
              in November whether to take     tion that WorldCom would
              new stock options at the mar-   acquire the company.
              ket price on May 11, 2001.

Theglobe.com  The Net community gave          The plan has had troubles:
(TGLO)        employees new options           The stock slipped below
              in May priced at $1.59          $1 and the company is
              after the stock tumbled         cutting 41% of its work-
              from more than $40 last         force.
              year.

The Knot      The options will be awarded     In July, the wedding
(KNOT)        to recruit new employees and    planning site increased
              provide a financial incentive   the number of options it
              to existing workers.            can grant to employees
                                              by 435,000 shares after
                                              its stock fell to less
                                              than $2 from $21.

DATA: COMPANY REPORTS, BUSINESS WEEK