Spreadsheet: harry_arora__12178__enersaexamples RSA 2000 12-11-00
Sheet: Sheet1

WITHHOLDING ASSUMPTIONS AND EXAMPLES
All examples assume a Restricted Release of 1,000 shares, an Enron closing price
of $80 on the date of release and Dividend Equivalents earned of $100.00.
1,000 shares x $80 = $80,000(1) gain + $100 Div Equiv = $80,100 Taxable Compensation
 |  | FIT | 0.28 |  | 22428
 |  | State Tax | 0 |  | 0
 |  | FICA | 0.062 |  | 4966.2
 |  | Medicare | 0.0145 |  | 1161.45
 |  | TOTAL TAXES
$28,555.65 - $100 for Dividend Equivalents = $28,455.65
EXAMPLE 1 - Shares traded for taxes
$28,455.65 remaining taxes due divided by $80 = 355 shares withheld for taxes
 | Remaining taxes due |  |  | 28455.65
 | Less shares withheld for taxes |  |  | -28400
 | Net taxes due
 | To be deducted from next payroll check
EXAMPLE 2 - Funds remitted to cover
 | Total taxes due |  |  | 28555.65
 | Less Dividend Equivalents |  |  | -100
 | Remaining taxes due
EXAMPLE 3a - All or a portion of shares sold, assume sale price of $81
 | Total taxes due |  |  | 28555.65
 | Less Dividend Equivalents |  |  | -100
 | Remaining taxes due
Sold all shares |  | 1,000 shs @ $81
 | Gross proceeds |  |  | 81000
 | Less Commission & SEC fees |  |  | -62.7 | (2)
 | Net proceeds
 | Remaining Taxes due on Release |  |  | -28455.65
 | Net proceeds to optionee
$81 x 1,000 = $81,000 - $80,000(1) - $62.70(2) = $937.30 Short-term Capital Gain
Sold portion of shs |  | $28,455.65 divided by $81 = 352 shs sold
 | Gross proceeds |  |  | 28512
 | Less Commission & SEC fees |  |  | -22.07 | (3)
 | Net proceeds
 | Less Remaining Taxes due on Release |  |  | -28455.65
 | Net proceeds to optionee
$81 x 352 = $28,512 - ($80 x 352 = $28,160) - $22.07(3) = 329.93 |  |  |  |  | Short-term gain
EXAMPLE 3b - All shares sold, assume sale price of $79
Sold all shares |  | 1,000 shs @ $79
 | Gross proceeds |  |  | 79000
 | Less Commission & SEC fees |  |  | -62.63 | (4)
 | Net proceeds
 | Less Remaining Taxes due on Release |  |  | 28455.65
 | Net proceeds to optionee
$79 x 1,000 = $79,000 - $80,000(1) - $62.63(4) = ($1,062.63) |  |  |  |  | Short-term loss
ADDITIONAL WITHHOLDING ASSUMPTIONS AND EXAMPLES
1,000 shares x $80 = $80,000 gain + $100 Div Equiv = $80,100 Taxable Compensation
 |  | FIT | 0.396 |  | 31719.6
 |  | State Tax | 0 |  | 0
 |  | FICA | 0.062 |  | 4966.2
 |  | Medicare | 0.0145 |  | 1161.45
 |  | TOTAL TAXES
 |  | FIT | 0.28 |  | 22428
 | Additional FIT w/h |  | 0.116 |  | 9291.6
EXAMPLE 4 - All or a portion of shares sold, assume sale price of $81
 | Total taxes due |  |  | 37847.25
 | Less Dividend Equivalents |  |  | -100
 | Remaining taxes due
Sold all shares |  | 1000 shs @ $81
 | Gross proceeds |  |  | 81000
 | Less Commission & SEC fees |  |  | -62.7 | (5)
 | Net proceeds
 | Less Remaining Taxes due on Release
 | Net proceeds to optionee
1,000 x $81 = $81,000 - $80,000(1) - $62.70 = $937.30 |  |  |  |  | Short-term gain
Sold portion of shs |  | $37,747.25 divided by $81 = 467 shs sold
 | Gross proceeds (467 x $81) |  |  | 37827
 | Less Commission & SEC fees |  |  | -29.28 | (6)
 | Net proceeds
 | Less Taxes due on Release
 | Net proceeds to optionee
467 x $81 - (467 x $80 = $37,360) - $29.28(6) = $437.72 |  |  |  |  | Short-term gain
EXAMPLE 5 - Funds remitted to cover
 | Total taxes due |  |  | 37847.25
 | Less Dividend Equivalents |  |  | -100
 | Remaining taxes due
EXAMPLE 6 - Shares withheld for required taxes and swapped for additional taxes
$28,455.65 total taxes due divided by $80 = 355 shares traded for taxes
 | Remaining taxes due |  |  |  | 37747.25
 | Less shares withheld for taxes |  |  |  | -28400
 | Less Already Owned Shares swapped for taxes |  |  |  | -9280 | 116 shs
 | Net taxes due
 | $67.25 to be deducted from next payroll check.