ALSBer's -- 

Here's a basic contract question --  I welcome your thoughts on it.  A
friend of mine started a new job in March -- as part of his hiring, he
signed a stock option grant agreement giving him 80,000 shares of stock
at the option price of $.05 per share;   yesterday, 3 months after
signing the stock option agreement, he received the following Email 
from the VP of Finance and Operations:
     * * *
"Subject:        New Stock Option paperwork 

   Due to an administrative error following the March board meeting,
all grants
were shown at a price of $.05 instead of the Board approved $.07 per
share.
I have the corrected paperwork in my office to hand out.    When you
get a
chance, please come by to pick this up (assuming I'm around).    I can
then
answer any questions you might have prior to signing.    I should be in
my
office from 3:45pm, onward, today."

   * * *
 As I read it , the original option grant is  valid and binding, and
the company must be willing to offer some additional consideration in
return for the employee's agreement to revise the terms of the original
option grant  (which will cost the employee $1600).  
  Of course , the employee is an at-will employee, and conceivably
could be fired for refusing to sign the revised option agreement; 
fortunately for the employee, though, this takes place in New Jersey,
and the NJ courts recognize the implied covenant of good faith and fair
dealing in employment at will contracts.
          Your comments, please.   
                                             Thanks,   Pat Cihon