METHOD AND SYSTEM FOR CREATING AND MARKETING EMPLOYEE STOCK OPTION MIRROR IMAGE WARRANTS
First Claim
1. A system for determining value of employee stock options, the system comprising:
- a computer configured to;
facilitate issuance of 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;
facilitate issuance of 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;
determine the market value of the warrants at issue; and
determine the value of the options using the market value of the warrants at issue.
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Accused Products
Abstract
A warrant on company stock that is used to determine value of employee options for U.S. accounting purposes on company stock. The warrant comprises an amortization factor, an exercise term that is the same or substantially similar to an exercise term of the employee options, and a strike price that is the same or substantially similar to a strike price of the employee options. The warrant also comprises a provision to periodically determine the amortization factor based on early forfeiture and/or early exercise of the employee options, a provision to apply the amortization factor to the warrants; and a provision to determine an intrinsic value of the warrants. Value of the employee options for U.S. accounting purposes is determined using market value of the warrants at issue.
102 Citations
21 Claims
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1. A system for determining value of employee stock options, the system comprising:
a computer configured to; facilitate issuance of 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; facilitate issuance of 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; determine the market value of the warrants at issue; and determine the value of the options using the market value of the warrants at issue. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
Specification