- 4 - Background The parties submitted this case fully stipulated pursuant to Rule 122. The parties’ stipulations of facts, with attached exhibits, are incorporated herein by this reference. At the time the petition was filed, petitioner resided in San Francisco, California. A. Ariba Technologies, Inc., Incentive Stock Options From April 24, 1997, through April 4, 2001, petitioner was employed as a sales assistant with Ariba Technologies, Inc. (Ariba) at an annual salary of $38,000. 1. Grants and Exercise of Stock Options In addition to his salary, on July 21, 1997, Ariba issued to petitioner option No. 34 under its 1996 Stock Option Agreement (agreement) and 1996 Stock Option Plan (plan). Option No. 34, which qualified as an incentive stock option (ISO), granted petitioner the option to acquire 2,000 shares of Ariba common stock.2 On March 2, 1998, Ariba issued option No. 117 to petitioner under its agreement and plan. Option No. 117, which qualified as an ISO, granted petitioner the option to acquire 2,000 shares of 2 The stock granted under option No. 34 will not be discussed in this Opinion. When the ISOs granted under option No. 34 were exercised, both the stock’s purchase price and FMV were 20 cents per share. As a result, no AMTI gain or loss was generated upon the exercise of these shares or their subsequent sale.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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