Subject: File No. S7-27-04
From: Mel Gates

July 10, 2004

I have two points which I would like to make in regard to executive trading.

1. I understand that there is a move afoot to require that companies fund the stock options of the officers and board. I don't know the status of this, but I would like to recommend that we move in this direction.

2. I would like to go a little further in this area. I have watched stock prices plummet as executives dump their options only to pick up cheaper options. A point in mind is Larry Ellison of Oracle. There may be a reporting requirement for people who are selling their options in large amounts to advise their intensions well ahead of their sale. However, I don't think this information is readily available to everyone and I would like to see a letter to stockholders stating such intensions. Non-compliance would invoke penalties such as being completely from receiving options for a period of time.

I thank you for listening to me and perhaps I have not uncovered any new ground.

Mel Gates
14 Redstart Path
Hilton Head, SC 29926