Message-ID: <25687206.1075863668172.JavaMail.evans@thyme> Date: Fri, 7 Jul 2000 06:43:00 -0700 (PDT) From: chris.germany@enron.com To: trogg522@aol.com Subject: EnronOptions - Your Stock Option Program Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Chris Germany X-To: Trogg522@aol.com X-cc: X-bcc: X-Folder: \Chris_Germany_Dec2000\Notes Folders\Discussion threads X-Origin: Germany-C X-FileName: cgerman.nsf ---------------------- Forwarded by Chris Germany/HOU/ECT on 07/07/2000 01:= 42=20 PM --------------------------- Office of the Chairman From: Office of the Chairman@ENRON on 06/29/2000 11:46 AM To: ESOP All Enron N. A. cc: =20 Subject: EnronOptions - Your Stock Option Program It is amazing and yet not surprising how much Enron has accomplished in the= =20 first six months of this year. You continue to make it happen. We recogniz= e=20 that you work hard every day to accomplish Enron=01,s business goals, and w= e are=20 pleased that many of you have shared in the company=01,s financial success= =20 through Enron stock options.=20 As you may know, the current employee stock option program (also known as t= he=20 All Employee Stock Option Program or AESOP) began in 1994 and provided valu= e=20 to participants through 2000. Employees who have participated in this=20 program from its inception have realized a 1,119% increase in the value of= =20 their stock options (assuming a stock price of $70) over the life of the=20 program. =20 Enron stock options are a valuable part of your total compensation package= =20 and a contributing factor to your performance and to Enron=01,s continued= =20 success. Therefore, the Enron Executive Committee and the Compensation and= =20 Management Development Committee of the Enron Board of Directors have decid= ed=20 to continue to offer stock options as a part of your compensation package. On May 1, 2000, the Committee approved an employee stock option program for= =20 calendar years 2001 - 2005 (EnronOptions =01) Your Stock Option Program). = It is=20 expected that EnronOptions =01) Your Stock Option Program will be granted,= =20 effective on or about December 29, 2000, for those employees who are eligib= le=20 on that date (please see note below). The new program, which is subject to= =20 final approval by Enron=01,s Board of Directors, is as follows: ? EnronOptions =01) Your Stock Option Program will give stock options to=20 eligible full-time and part-time regular employees in domestic and=20 international companies/locations. ? The grant of non-qualified stock options will equal 25% of annual base=20 salary (5% of annual base salary for each year of a 5-year period) on=20 December 29, 2000. (Salary calculation and value may vary in some=20 international locations.) ? The Board will grant the stock options on December 29, 2000. ? Eligible employees hired in subsequent years will receive a prorated gran= t=20 of stock options. Why commit your talent and energy to Enron? EnronOptions =01) Your Stock O= ption=20 Program, among other good reasons=01( that=01,s why. In the coming weeks, you will be receiving more details about EnronOptions = =01)=20 Your Stock Option Program. To provide information and answer your question= s,=20 we will introduce a special link on the Human Resources web-site, host=20 several eSpeak sessions and continue to communicate with you on a regular= =20 basis. In the meantime, if you have immediate questions, please contact yo= ur=20 Human Resources representative.=20 Note: In addition to final approval by Enron=01,s Board of Directors, grant= ing=20 of options will be subject to New York Stock Exchange and state and federal= =20 regulatory requirements. It is expected that EnronOptions =01) Your Stock= =20 Option Program will be available to most Enron employees; however, some Enr= on=20 companies=01, employees may not be eligible due to legal, accounting, tax, = labor=20 or business issues. As you know, Enron changes to meet the needs of the=20 marketplaces we serve. Given that need to change, we will continue to refi= ne=20 the eligibility for EnronOptions =01) Your Stock Option Program and will=20 communicate more details throughout the year with final eligibility being= =20 determined on December 29, 2000. =20