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OMB APPROVAL
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OMB Number 3235-0287
Expires: September 30, 1998
Estimated average burden
hours per response ....... 0.5
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[ ] Check this box if no longer subject of Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
Rottsolk James E.
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(Last) (First) (Middle)
2815 Eastlake Avenue East
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(Street)
Seattle WA 98102
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Tera Computer Company (TERA)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
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5. If Amendment, Date of Original (Month/Year)
10/97
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[ X ] Director [ ] 10% Owner
[ X ] Officer (give title below) [ ] Other (specify below)
President and CEO
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7. Individual or Joint/Group Filing (Check applicable line)
[ X ] Form filed by one Reporting Person
[ ] Form filed by more than one Reporting Person
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 10/27/97 S 5,604(1) D $1.76 285,257(2) D
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Common Stock 1,698(3) I (3)
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</TABLE>
(1) Sold to four employees of Tera Computer Company pursuant to the exercise of
options under option agreements dated 10/5/92 between the Reporting Person and
each employee.
(2) Includes 8,434 shares of Common Stock subject to option agreements, dated
10/5/92, between the Reporting Person and certain employees of Tera Computer
Company, pursuant to which such employees have the right to purchase shares from
the Reporting Person at $1.76 per share. These option agreements terminate on
12/31/97.
(3) Reporting Person disclaims beneficial ownership of these shares as to which
he has voting and dispositive powers as custodian for six minor children under
the Washington Uniform Gifts to Minors Act.
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the Form is filed by more than one Reporting Person, see Instruction
4(b)(v).
<PAGE>
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
9. 10.
Number Owner-
of ship
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
of Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Employee Stock
Options (obliga- 12-31- Common
tion to sell) $1.76 3-26-97 J(4) 14,831 Immed 97 Stock 14,831 n/a 8,434 D n/a
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" " 6-23-97 J(5) 904 " " " 904 " " " "
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" " 6-24-97 " 443 " " " 443 " " " "
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" " 7-24-97 " 354 " " " 354 " " " "
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" " 8-16-97 " 319 " " " 319 " " " "
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" " 8-19-97 " 1,596 " " " 1,596 " " " "
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" " 8-25-97 " 639 " " " 639 " " " "
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" " 9-5-97 " 390 " " " 390 " " " "
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" " 9-18-97 " 511 " " " 511 " " " "
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" " 10-27-97 " 5,604 " " " 5,604 " " " "
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</TABLE>
Explanation of Responses:
See reverse for explanations of footnotes (1) - (3).
(4) Reflects satisfaction on 3/26/97 of condition precedent (completion of
"integer sort" test by prototype computer system) to vesting of options to
purchase an aggregate of 14,831 shares of Common Stock granted by Reporting
Person to certain employees of Tera Computer Company pursuant to option
agreements dated 10/5/92.
(5) Reflects exercise of options to purchase shares of Common Stock pursuant to
option agreements, dated 10/5/92, between Reporting Person and certain employees
of Issuer. Sales of Common Stock by the Reporting Person pursuant to the
exercise of such options were timely reported on Form 4 Reports for June, July,
August, September and October 1997.
/s/ JAMES E. ROTTSOLK November 24, 1997
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedures.
Potential persons who are to respond to the collection of information in this
form are not required to respond unless the form displays a currently valid OMB
Number.
