Jeff Sherrick is still pushing to give his folks 5% of base salary in cash (we're not granting options because they are on the block to be sold...if they are ever taken of the block, then we'll grant options appropriately.  PGE, Wind and EGEP all have not received stock in quite some time because stock awards are forward looking grants and dilution is an issue). He's already been told No a few times, but I think will keep pushing until he gets a no from Ken.

We're not giving 5% of cash to EGEP employees because:
(1)  Precedence - we're not giving anything to PGE, Wind, Puerto Rico or any other asset that is being divested in the next couple of years.
(2)  They already have a good amount of Divestiture/Retention Bonuses in place for employees that are Key to the deal (between 75% and 200% of their salary or more)
(3)  We have them all 5% of cash this past January that was paid out (vested) in June
(4)  Part of the intent of this grant is to make up for the lack of value in all the options granted this past December (25% of base salary to all "eligible" employees) and EGEP got cash instead
(5)  These folks have jobs and a payday (div and retention bonuses) coming soon, while many others in the company are in redeployment

Now we have an issue in that we're sending out an email discussing the 5% special grant for all employees that are receiving them and Jeff Sherrick is worried about what his people will think and what he will tell them.  If I owned that subsidiary, I'd say - "Let's get this thing sold, so we can get our Huge Divestiture and Retention Bonuses that are much bigger than this 5% and NOBODY else in the company has those Div/Retention bonuses...in fact all of their options that they've been getting the past couple of years are underwater...we're looking pretty good!"

I'm about to let Jeff Sherrick know the deal and he's most likely to call one of you or Ken directly.

Thanks,
Aaron