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To: Biomaven who wrote (155654)	4/11/2005 6:52:54 PM
From: gzubeck	Read Replies (1) \| Respond to of 275872

Biomaven...how do you guys value longterm leaps (greater than 2 years) using the black-scholes model...I would think these would be very expensive if they give them 5 years on the option contracts...wouldn't it be better to just give your employees shares of stock...or is it the leverage that makes it attractive for employees...

To: Biomaven who wrote (155654)	4/11/2005 7:09:22 PM
From: Petz	Read Replies (2) \| Respond to of 275872

So will the options cost part of earnings also be applied to book value? Seems like it shouldn't be, since it is a non-cash charge. Otherwise a company that was neither making nor losing money could see its book value decline to 0 as, year after year, they issue options that eventually expire worthless. Will outstanding options and option grants be ignored on the balance sheet or will there be a "Theoretical Liability" on one side balanced by "Recaptured Option Expense" on the other side? Does the money from option exercises shows up as "additional paid-in capital?" Petz