Message-ID: <19585381.1075852810358.JavaMail.evans@thyme>
Date: Thu, 4 Oct 2001 08:31:57 -0700 (PDT)
From: terry.hare@nepco.com
To: kenneth.lay@enron.com
Subject: FW:  ESOP Stock Option Plan
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X-From: Terry.Hare@nepco.com@ENRON <IMCEANOTES-Terry+2EHare+40nepco+2Ecom+40ENRON@ENRON.com>
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> Mr. Chairman,
>                      I would like to offer a suggestion concerning the
> severe errosion of value to those of us who were given stock options this
> last December/January
>
> 1. It seems that those eligible to start this coming year-end are going to
> be far better off than those of us who started last year......by a
> considerable amount.
>
>     In my case I had approx. 900 shares at a price > $80 (based on about
> $25/share by Black-Scholes).
>
>     If the stock does extremely well between now and Christmas it could be
> at a price of say $40 and have a Black-Scholes value of say $18.   Based
> on these very rough
>     numbers, if I was starting in the plan this coming year end, I would
> get 1000 shares at a price of $40.
>
> 2. MY SUGGESTION IS, THAT WE BE ALLOWED TO GIVE UP OUR  EXISTING ESOP
> RIGHTS AND BE ABLE TO RE-ENTER THE PLAN THIS YEAR.    This then would be
> based on 20% of our base salary versus the 25% of last year (but most
> salary bases would be a little higher too).   This should be an optional
> choice.
>
>    I am confident this would be an enormously popular move.
>
>
>
> Best Regards,
>
>
> Terry Hare
>
>
> NEPCO
>
>