-9-
transferred by wire from petitioner’s account at Charles Schwab
to petitioner’s account at Piper Jaffray.
Piper Jaffray sent Primus two checks drawn on petitioner’s
Piper Jaffray account. The first check, in the amount of
$369,525.75 and dated July 18, 2000, was for payment of the
exercise price. The second check, in the amount of $385,711.80
and dated July 20, 2000, was for payment of withholding tax on
the exercise of petitioner’s nonqualified stock options.
Petitioner used credit from Piper Jaffray to fund $385,170.74 of
the $385,711.80.
On July 20, 2000, Primus prepared three confirmations. The
confirmations reported that petitioner, on July 14, 2000, had
exercised his first, second, and third options in purchase of
24,432 shares, 5,208 shares, and 15,151 shares, respectively, at
a market value per share of $52.4375. On each weekday from
Friday, July 14 through Thursday, July 20, 2000, shares of Primus
common stock had a closing price and an average high/low price as
follows:
Closing Price High/Low Average
July 14 $52.31 $52.4375
17 46.25 49.25
18 38.00 41.28
19 40.0625 40.685
20 40.00 41.375
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Last modified: May 25, 2011