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After graduating from high school, Reyes attended Saint Mary's College of California in Moraga, CA, where he obtained a degree in Business Administration in 1984.During his studies there, Reyes obtained an internship with Convergent Technologies (Unisys) in its sales department.Early exercises also have substantial penalties to the exercising employee.Those penalties are a) part of the "fair value" of the options, called "time value" is forfeited back to the company and b) an early tax liability occurs.

Companies would simply wait for a period in which the company's stock price fell to a low and then moved higher within a two-month period.The earliest attempts by accounting regulators to expense stock options in the early 1990s were unsuccessful and resulted in the promulgation of FAS123 by the Financial Accounting Standards Board which required disclosure of stock option positions but no income statement expensing, per se.The controversy continued and in 2005, at the insistence of the SEC, the FASB modified the FAS123 rule to provide a rule that the options should be expensed as of the grant date.The company would then grant the option but date it at or near its lowest point.This is the granted option that would be reported to the SEC.

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