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To: gzubeck who wrote (155644)	4/11/2005 3:10:48 PM
From: Petz	Read Replies (1) \| Respond to of 275872

I have many, many questions about options expensing. Will there by charges for already-granted options when options expensing starts, or will they only have to expense new options? I think your point was that if they have to expense already-granted options, any that have been already exercised do not have ot be expensed at all. (But even that could be wrong.) If they have to expense already-granted options, then do they value them as of July 1 and then amortize the cost over the remaining lifetime? Or do they value them at the date they were granted, figure out how much should have been already amortized, and then amortize the remaining value until expiration? Are there any adjustments made to amortization based on exercise? For example, if the amortization was $0.50 a year for 10 years, but it expires without having been exercised, is there a recovery? Or, in the opposite extreme which is what gzubekc was considering, if an option is exercised does it make any sense to continue amortizing its theoretical value from when it was granted? But I would think there should be either a credit or charge based on what its actual cost to shareholders was at exercise, compared to the theoretical amortization totals that have occurred prior to the exercise. Petz