Patent ID: 7693770

Claim:
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 employee stock options to company employees on company stock, wherein the employee stock 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 employee stock options, the same or a substantially similar strike price as the employee stock options, and provisions to periodically determine the amortization factor based on early forfeiture or early exercise of the employee stock options, provisions to apply the amortization factor to the warrants and provisions to 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 employee stock options using the market value of the warrants at issue.