Robert C. and Patricia C. Humphrey - Page 22

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          1999, and i2’s February 29, 2000, payroll register stated                   
          petitioner was terminated.  The evidence indicates an employee-             
          employer relationship did not exist after December 31, 1999.                
               None of the factors listed above support petitioner’s                  
          position.  Considering all of the facts and circumstances, this             
          Court finds petitioner was not a common law employee of i2 after            
          he retired on December 31, 1999, and was not an employee within 3           
          months of exercising his ISOs on November 13, 2000, for purposes            
          of section 422(a)(2).  As a result, section 421 did not apply to            
          the exercise of petitioner’s ISOs on November 13, 2000, and                 
          section 83 did.                                                             
               The remaining issues will not be addressed because they rely           
          upon this Court’s finding petitioner was an employee within 3               
          months of exercising his ISOs for purposes of section 422(a)(2).            
               In reaching these holdings, the Court has considered all               
          arguments made and, to the extent not mentioned, concludes that             
          they are moot, irrelevant, or without merit.                                
               To reflect the foregoing and the concessions of the parties,           


                                                  Decision will be entered            
                                             for respondent.                          











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