Enron Mail

Subject:EnronOptions - Your Stock Option Program
Date:Thu, 29 Jun 2000 04:46:00 -0700 (PDT)

It is amazing and yet not surprising how much Enron has accomplished in the=
first six months of this year. You continue to make it happen. We recogniz=
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=
through Enron stock options.=20

As you may know, the current employee stock option program (also known as t=
All Employee Stock Option Program or AESOP) began in 1994 and provided valu=
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=
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=
and a contributing factor to your performance and to Enron=01,s continued=
success. Therefore, the Enron Executive Committee and the Compensation and=
Management Development Committee of the Enron Board of Directors have decid=
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=
calendar years 2001 - 2005 (EnronOptions =01) Your Stock Option Program). =
It is=20
expected that EnronOptions =01) Your Stock Option Program will be granted,=
effective on or about December 29, 2000, for those employees who are eligib=
on that date (please see note below). The new program, which is subject to=
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=
of stock options.

Why commit your talent and energy to Enron? EnronOptions =01) Your Stock O=
Program, among other good reasons=01( that=01,s why.

In the coming weeks, you will be receiving more details about EnronOptions =
Your Stock Option Program. To provide information and answer your question=
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=
basis. In the meantime, if you have immediate questions, please contact yo=
Human Resources representative.=20

Note: In addition to final approval by Enron=01,s Board of Directors, grant=
of options will be subject to New York Stock Exchange and state and federal=
regulatory requirements. It is expected that EnronOptions =01) Your Stock=
Option Program will be available to most Enron employees; however, some Enr=
companies=01, employees may not be eligible due to legal, accounting, tax, =
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=
the eligibility for EnronOptions =01) Your Stock Option Program and will=20
communicate more details throughout the year with final eligibility being=
determined on December 29, 2000.