This excerpt taken from the CPKI DEF 14A filed Apr 26, 2005.
Federal Income Tax Consequences
Under present federal income tax law, eligible employees will recognize ordinary income equal to the amount of the award received in the year of receipt. That income will be subject to applicable income and employment tax withholding by us. If, and to the extent that, the Bonus Plan payments satisfy the requirements of Code Section 162(m) and otherwise satisfy the requirements for deductibility under federal income tax law, we will receive a deduction for the amount constituting ordinary income to the eligible employee.