4//SEC Filing
SONUS NETWORKS INC 4
Accession 0001135082-07-000004
CIK 0001105472operating
Filed
Oct 1, 8:00 PM ET
Accepted
Oct 2, 9:17 AM ET
Size
9.8 KB
Accession
0001135082-07-000004
Insider Transaction Report
Form 4
AHMED HASSAN
Director
Transactions
- Disposition to Issuer
Employee Stock Option (right to buy)
2007-08-02−1,250,000→ 750,000 totalExercise: $4.47Exp: 2013-06-16→ Common Stock (1,250,000 underlying) - Award
Employee Stock Option (right to buy)
2007-08-02+1,250,000→ 1,250,000 totalExercise: $4.79Exp: 2013-06-16→ Common Stock (1,250,000 underlying)
Footnotes (2)
- [F1]In a Form 4 filed on 6/18/03, the reporting person reported that, on 6/16/03, he was granted an employee stock option covering 2,000,000 shares of common stock, having an exercise price of $4.47 a share (the market price at the close of the stock on 6/16/03), and vesting 25% after 1 year and in equal increments monthly thereafter through the 4th year beginning 6/16/03. It was recently determined that the appropriate measurement date for financial accounting purposes of the grant of that option was 6/18/03 on which the closing price of the issuer's stock was $4.79 a share. To avoid adverse tax consequences resulting from the vesting of a "discounted option" after 12/31/04, the reporting person and the issuer agreed on 12/26/06, as reported on a Current Report on Form 8-K dated 12/29/06 to amend any options subject to Section 409A to provide that, (cont'd)
- [F2]with respect to the portion of any such option vesting after 12/31/04 (representing 1,250,000 shares), the option will have an exercise price equal to the $4.79 market price at the close on the corrected date of grant of that option. On 8/2/07, the issuer filed its Annual Report on Form 10-K for the year ended 12/31/06. In connection with this filing, the issuer concluded that the appropriate measurement date for financial accounting purposes for the grant was 6/18/03 with an exercise price of $4.79. The amendment is reported in this Form 4 as a cancellation of a portion of the original option and the grant of a replacement option. In connection with the amendment, the reporting person became entitled to receive, on January 15, 2008, a cash payment of $400,000, which is the amount of the increase in the aggregate exercise price of the replacement option. The original option remains exercisable for 750,000 shares at the original exercise price of of $4.47 a share.
Documents
Issuer
SONUS NETWORKS INC
CIK 0001105472
Entity typeoperating
IncorporatedDE
Related Parties
1- filerCIK 0001105472
Filing Metadata
- Form type
- 4
- Filed
- Oct 1, 8:00 PM ET
- Accepted
- Oct 2, 9:17 AM ET
- Size
- 9.8 KB