-12-
CTI paid petitioner a bonus in 2001 for the work she had
performed for CTI while employed by it in 2000. Petitioner did
not receive a bonus in 2002 for the work she performed for CTI in
2001.
At or about the beginning of 2002, the parties to the
consulting agreement agreed that the term of the agreement should
be extended through March 3, 2002, so that petitioner could
review the performance of CTI’s employees. The consulting
agreement was so extended, and it terminated on March 3, 2002.
C. Exercise of Stock Options
On March 5, 2002, petitioner exercised some of her options
to buy CTI common stock. On that date, each of her purchased
shares had a fair market value of $23.19. As to one option,
petitioner paid an exercise price of $46,496 to purchase (at
$2.906 per share) 16,000 shares of CTI common stock with a total
fair market value of $371,040. Upon exercise of that option, she
also paid $97,596.57 to CTI so CTI could withhold and pay Federal
income, Social Security, and Medicare taxes associated with the
exercise. As to another option, petitioner paid an exercise
price of $58,120 to purchase (at $2.906 per share) 20,000 shares
of CTI common stock with a total fair market value of $463,800.
Upon exercise of that option, she also paid $115,415.96 to CTI so
CTI could withhold and pay Federal income, Social Security, and
Medicare taxes associated with the exercise. As to another
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: November 10, 2007