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To: Tony McFadden who wrote (4425)	10/29/1998 5:16:00 AM
From: SDR-SI	Respond to of 11417

Further to Tony's remarks: The authorization for additional shares for which the vote of stockholders is scheduled does not represent any dilution. Dilution would only take place upon issuance of such shares. The company has stated, and the figures bear them out, that the additional shares are needed to put them into a reasonable level of authorization for possible future developments and that there is no specific one of these developments (acquisitions, secondaries, splits, etc., etc.) contemplated at this time. The authorization should have no effect whatever on the stock price, if the shares are not issued and will have absolutely no dilutive effect in the accounting sense unless issued. Regarding the increase in share authorization for the option program, it is possible that the company's intention is to "feather the nest" of existing officers and employees. Such would seem to be a little out of character, however; but, stranger things have happened in other companies. It is also possible that from their vantage point, the company's management can see that a more lucrative option program may be necessary to attract the type of talent that the company will need and that its promise for growth demands. (It's funny - I was going to type above that "from their vantage point, the Spragues can see ...", but instead wrote "company's management". It is exactly this getting away from the defining of the company by personalities and getting into defining the company by its substance that is required for the company to take its next steps. And having the ability to attract additional top level talent whose compensation must be more than the salary that the company can afford to pay will be essential. The use of a stock option program to attract such talent who are willing to put their compensation risk with the interests of the stockholders is exactly a possible primary goal of this proposal. Such foresight by this company's management has not been uncommon previously.) I think that the company developments that we have been given the opportunity to see in the last week, and those that we expect in the next couple of weeks, ought to make us believe that the proposals have a reasonably high probability of being beneficial to the growth of the company and have a reasonably low probability of being for the personal benefit of specific management people. Just my opinion. Steve