Message-ID: <31332509.1075863609831.JavaMail.evans@thyme>
Date: Wed, 28 Jun 2000 11:39:00 -0700 (PDT)
From: office.chairman@enron.com
To: esop.america@enron.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: Office of the Chairman
X-To: ESOP - All Enron North America
X-cc: 
X-bcc: 
X-Folder: \Jeffrey_Skilling_Dec2000\Notes Folders\Discussion threads
X-Origin: SKILLING-J
X-FileName: jskillin.nsf

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.