Read, I traded stock options (and occasionally warrants) on a stock exchange for about 10 years. I would echo what Anthony said. I would also add that you need to spell out your rights and exit / cash out terms whatever form your stake takes and of course gauge the liquidity for that as well. I have a lawyer based in Westchester, NY who did my trading company agreements and was also an options trader as well. I'm happy to give you his contact info. if you like. Good luck, Andrew Andrew Bellak President Andrew at stakeholdersinc.com 413-549-4589 home / office 646-552-5783 mobile "You must be the change you want to see in the world" - Mohandas Gandhi -----Original Message----- From: hidden-discuss-bounces at lists.hidden-tech.net [mailto:hidden-discuss-bounces at lists.hidden-tech.net] On Behalf Of Anthony Vlamis Sent: Friday, January 19, 2007 10:29 AM To: Read Predmore, Ph.D.; Hidden-discuss at lists.hidden-tech.net Subject: Re: [Hidden-tech] Warrant for Common Stock i don't have a lawyer recommendation but these documents are usually pretty standard. They allow you to purchase a share of common stock at a certain price for a stated period of time--in other words they have expiration dates which if passed render the warrant worthless--. If this is a public company -- traded on an exchange--you'll be able to establish a current market value and then compare the stock price to the warrant price and figure out how much it is worth in terms of present value. if it is a private company then the warrant is pretty much valueless because the values set for the company stock are completely arbitrary. So if you accept a warrant to say purchase a share of the company stock at $1.00 for a term to expire in 5 years (go for the longest term possible) and they say the stock is valued at $2.50 today that value can pretty much be decided by the executive management over a cup of coffee that day. Again, public companies are not a problem because a real market valuation has been established by a purchaser and seller. All the rest is at best an opinion and at worst a wish. if it's possible to trade the paper for a right to purchase a percentage interest in the business or earn it through sweat equity (again, in a private company situation) that would probably work out much better for you in a success scenario. this is MHO Anthony Vlamis Intellagent Communications Solutions 1775 Plank Road Forestburgh, New York 12777-6803 845-794-2930 ----- Original Message ----- From: Read Predmore, Ph.D. <mailto:predmore at PredmoreAssociates.com> To: Hidden-discuss at lists.hidden-tech.net Sent: Friday, January 19, 2007 9:36 AM Subject: [Hidden-tech] Warrant for Common Stock ** The author of this post was a Good Dobee. ** You too can help the group ** Fill out the survey/skills inventory in the member's area. ** If you did, we all thank you. _____ 19 January 2007 Happy New Year Everyone! I am starting a consulting project with a startup company and am considering a "Warrant for Common Stock" in lieu of part of my fee. I would like recommendation for a lawyer to review the "Warrant" and feedback from others that have done this. Thanks, Read Predmore, Ph.D. ________________________________ Predmore Associates 413-549-8554 <http://www.PredmoreAssociates.com> www.PredmoreAssociates.com <mailto:pread at PredmoreAssociates.com> read at PredmoreAssociates.com ________________________________ _____ _______________________________________________ Hidden-discuss mailing list - home page: http://www.hidden-tech.net Hidden-discuss at lists.hidden-tech.net You are receiving this because you are on the Hidden-Tech Discussion list. If you would like to change your list preferences, Go to the Members page on the Hidden Tech Web site. http://www.hidden-tech.net/members -------------- next part -------------- An HTML attachment was scrubbed... URL: http://lists.hidden-tech.net/pipermail/hidden-discuss/attachments/20070119/bb0cd7e9/attachment-0005.html -------------- next part -------------- A non-text attachment was scrubbed... Name: not available Type: image/jpeg Size: 2268 bytes Desc: not available Url : http://lists.hidden-tech.net/pipermail/hidden-discuss/attachments/20070119/bb0cd7e9/attachment-0006.jpe