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To: Madharry who wrote (160034)	5/23/2004 3:08:46 PM
From: SI Dave	Respond to of 164684

I agree. There ought to be a law preventing repricing unless it's due to capital events such as mergers or spin-offs. They aren't repriced upwards when the stock gets a bubble-valuation, so why should they get repriced when the bubble gets popped? And if the stock goes down due to operating fundamentals or overall market conditions, such is life; that's why the options tend to have lengthy lives.

To: Madharry who wrote (160034)	5/23/2004 3:51:57 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 164684

that is an interesting piece of anecdotal evidence about seprecor. These days the bios are the only stocks that are really frothy and creating 90s-like gains for the employees, and the difference is that biotechs generally have so few employees it hardly matters. This in comparison to a company like cisco in its peak that was issuing options to the tune of 4% dilution per year. There are fewer options being granted now, fewer US employees overall (much fewer) and the grant sizes are the same as the peak in terms of # of shares, so for example an engineer today might get 10K shares of a $4 stock when in 99 he STILL got 10K shares of a $100 stock. So in general I think the market forces are taking care of options gluttony. As a shareholder in the case of a biotech, unless options really dilute you why would you care that the employees get rich? I sense a lot of envy in this whole options issue and to me that is not a reason to outlaw the things or expense them excessively (which is what black scholes does)