X0303 4 2009-02-23 0 0001091171 BLUE NILE INC NILE 0001287613 VADON MARK C C/O BLUE NILE, INC. 705 FIFTH AVENUE S, STE 900 SEATTLE WA 98104 1 1 0 0 Executive Chairman Stock Option (Right to Buy) 21.22 2009-02-23 4 A 0 60000 0.00 A 2019-02-22 Common Stock 60000 60000 D Restricted Stock Units 2009-02-23 4 A 0 2356 0.00 A Common Stock 2356 2356 D 25% of the option shares vest on February 23, 2010 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months. Each restricted stock unit represents a contingent right to receive one share of Blue Nile common stock. The restricted stock units vest in two equal annual installments commencing on February 23, 2010, subject to continued service to Blue Nile on the applicable vesting date. Vested shares will be delivered to the reporting person on the vesting date, provided that delivery may be delayed pursuant to the terms of the award agreement. /s/ Diane M. Irvine, Power of Attorney 2009-02-25