Method and system for creating and marketing employee stock option mirror image warrants

A warrant on company stock that is used to determine value of employee options on company stock, the warrant comprising:

• an amortization factor;
• an exercise term that is the same or substantially similar to an exercise term of the employee options;
• a strike price that is the same or substantially similar to a strike price of the employee options;
• a provision to periodically determine the amortization factor based on early forfeiture or early exercise of the employee options;
• a provision to apply the amortization factor to the warrant;
• and
• a provision to determine an intrinsic value of the warrant, wherein value of the employee options is determined using market value of the warrant at issue.

A system for determining value of employee stock options, the system comprising:

• means for issuing a plurality of options to company employees on company stock, wherein the options include an exercise term, a strike price and a restriction on transfer or hedge;
• means for issuing a plurality of warrants on the company stock, wherein the warrants include an amortization factor, the same or a substantially similar exercise term as the options, the same or a substantially similar strike price as the options, and provisions to periodically determine the amortization factor based on early forfeiture or exercise of the options, apply the amortization factor to the warrants and determine an intrinsic value of the warrants;
• means for determining the market value of the warrants at issue;
• and
• means for determining the value of the options using the market value of the warrants at issue.

Computer executable software code transmitted as an information signal, the code for determining value of employee stock options, the code comprising:

• code to issue a plurality of options to company employees on company stock, wherein the options include an exercise term, a strike price and a restriction on transfer or hedge;
• code to issue a plurality of warrants on the company stock, wherein the warrants include an amortization factor, the same or a substantially similar exercise term as the options, the same or a substantially similar strike price as the options, and provisions to periodically determine the amortization factor based on early forfeiture or early exercise of the options, apply the amortization factor to the warrants and determine an intrinsic value of the warrants;
• code to determine the market value of the warrants at issue;
• and
• code to determine the value of the options using the market value of the warrants at issue.

A computer-readable medium having computer executable software code stored thereon, the code for determining value of employee stock options, the code comprising:

• code to issue a plurality of options to company employees on company stock, wherein the options include an exercise term, a strike price and a restriction on transfer or hedge;
• code to issue a plurality of warrants on the company stock, wherein the warrants include an amortization factor, the same or a substantially similar exercise term as the options, the same or a substantially similar strike price as the options, and provisions to periodically determine the amortization factor based on early forfeiture or early exercise of the options, apply the amortization factor to the warrants and determine an intrinsic value of the warrants;
• code to determine the market value of the warrants at issue;
• and
• code to determine the value of the options using the market value of the warrants at issue.

A programmed computer for determining value of employee stock options, comprising:

• a memory having at least one region for storing computer executable program code;
• and
• a processor for executing the program code stored in the memory, wherein the program code comprises:
• code to issue a plurality of options to company employees on company stock, wherein the options include an exercise term, a strike price and a restriction on transfer or hedge;
• code to issue a plurality of warrants on the company stock, wherein the warrants include an amortization factor, the same or a substantially similar exercise term as the options, the same or a substantially similar strike price as the options, and provisions to periodically determine the amortization factor based on early forfeiture or early exercise of the options, apply the amortization factor to the warrants and determine an intrinsic value of the warrants;
• code to determine the market value of the warrants at issue;
• and
• code to determine the value of the options using the market value of the warrants at issue.