- 6 - representatives a direct financial interest in the success of the corporation. On July 7, December 8, and December 31, 1989, incentive stock options were granted to certain employees for $1.25, $2.25, and $2.25 a share, respectively. All such options were to vest over 5 years. Public Offering The corporation had an initial public offering of stock in June 1990, at a price of $10 per share. The possibility of an initial public offering was discussed at a meeting of the board of directors of the corporation on August 24, 1989. Technology Sharing Agreement On June 9, 1986, the corporation entered into a 3-year technology sharing agreement (the agreement) with Monolithic Memories, Inc. (MMI). Among other things, the agreement accorded MMI rights in certain present and future technology of the corporation. In April 1987, Advanced Micro Devices (AMD) acquired MMI and succeeded to MMI’s rights under the agreement. In 1990, the agreement was terminated. Respondent’s Expert Respondent presented as her expert witness Herbert T. Spiro (Spiro), who was accepted by petitioner as an expert and whose written report was received in evidence as his direct testimony. Spiro reached the conclusion, supported by his report, that the aggregate fair market value of the shares, as of October 22,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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