Neil D. and Vy Lubart - Page 3

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          allegations or denials, but must set forth specific facts showing           
          there is a genuine issue for trial.  Rule 121(d).  The existence            
          of any reasonable doubt as to the facts will result in denial of            
          the motion for summary judgment.  Hoeme v. Commissioner, 63 T.C.            
          18, 20 (1974).                                                              
               The facts presented below are stated solely for purposes of            
          deciding respondent's motion for summary judgment.                          
          Background                                                                  
               Petitioner was employed by International Business Machines             
          Corp. (IBM) as a physicist for more than 31 years.  While at IBM,           
          petitioner developed a dozen patents, and was responsible for               
          developing, along with other engineers, the world's first                   
          commercial laptop computer for IBM.  At the time petitioner                 
          ceased his employment with IBM, he was over 40 years old.                   
               At some point prior to July 31, 1992, petitioner became                
          eligible to participate in the IBM Modified and Extended                    
          Individual Transition Option Program (ITO II Program).  The ITO             
          II Program allows IBM employees to resign or retire early,                  
          receiving lump-sum payments and other benefits.  Petitioner was             
          required to sign a General Release and Covenant Not to Sue (the             
          release) as a condition for the sums and benefits, including the            
          lump-sum payment pursuant to the ITO II program.  The release is            
          broadly written and covers any and all possible and potential               
          claims in contract or in tort arising from employment or                    





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