Here is the post, FYI.

As I understand it, when an option is exercised, it gives rise to a taxable
event and 50% of the gain is taxed at the optionee's marginal tax rate. If that
person elects to hold onto the shares, they are still obligated to pay the tax.
If an optionee chooses to hold onto the shares, the price at the exercise date
becomes the acquisition cost for calculation of futures capital gains/losses.

Now, let's take Watchmaker's transactions: on November 9th, he exercised 10,000
options at $1.91 and sold 10,000 shares at $5.10. This resulted in a gain of
$3.19 per share or $31,190, of which 50% or $15,595 is taxable at Watchmaker's
marginal rate; so, Watchmaker nets about $22,000 from the transaction. On
November 8th, he purchased 600 shares at $5.09 and 3,100 shares at $5.11, for a
total cost of $18,386. Watchmaker's behavior differs from previous periods when
he exercised and sold only but did not re-invest. I view that this as
significant.

In addition, Shorkey exercised 20,000 options on November 9th at a gain of $2.22
per share or a total gain of $44,400, of which $22,200 is taxable in the current
year at Shorkey's marginal rate. His net would be approximately $33,000. He
exercised an additional 10,000 options at a strike price of $2.88, for a total
cost of $28,800; in addition, as I understand the tax code, Shorkey will have a
tax liability in the 2012 tax year of approximately $5,500. Shorkey has fully
reinvested his option gains in Wilan shares.

On November 9th, Bramson (a USA tax filer) acquired 9,800 shares in the open
market at a cost of US$49,990. Records do not show any disposition of these
shares. I am not familiar with the US tax code, but I assume that he will have a
capital gains tax liability at some point, although not immediately.

Now our friend Jim Skippen. He did not exercise any options when the current
blackout period was lifted, but purchased 8,000 shares in the market at $5.14
and continues to hold these shares. This recent purchase was in addition to
24,000 shares purchased on the open market August 3rd to 8th and 4,000 shares
purchased on June 15th. Some will say that's not enough, but that is not
relevant to the question/challenge that insiders are jumping ship because they
exercised and sold options.

In total, insiders have purchased 86,500 shares (including Shorkey's retained
10,000 option shares) in the past six months - putting approximately $500,000
where there mouths are...without selling ONE share. That, my friends is Wilan
insiders' commitment to Wilan.