SEC Form 4 · accession 0001140361-17-004392
Fortinet, Inc. · FTNT
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owner
Ken Xie
Officer — President & CEO · Director
Period of report
Feb 1, 2017
Accepted (ET)
Feb 3, 2017 · 4:35 pm EST
Rule 10b5-1 plan
unknown — predates the checkbox
Issuer CIK
0001262039
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Common Stock | Feb 1, 2017 | M | 1,563 | $0.00 | A | 12,441,453 | D | |
| Common Stock | Feb 1, 2017 | M | 2,500 | $0.00 | A | 12,443,953 | D | |
| Common Stock | Feb 1, 2017 | M | 2,500 | $0.00 | A | 12,446,453 | D | |
| Common Stock | Feb 1, 2017 | M | 10,000 | $0.00 | A | 12,456,453 | D | |
| Common Stock | Feb 1, 2017 | A | 18,984 | $0.00 | A | 12,475,437 | D | |
| Common Stock | Feb 1, 2017 | F | 15,062 | $33.10 | D | 12,460,375 | D |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Restricted Stock UnitsF7,F8 | $0.00 | Feb 1, 2017 | M | 1,563 | D | — | — | Common Stock | 1,563 | 0 | D |
| Restricted Stock UnitsF7,F9 | $0.00 | Feb 1, 2017 | M | 2,500 | D | — | — | Common Stock | 2,500 | 10,000 | D |
| Restricted Stock UnitsF7,F10 | $0.00 | Feb 1, 2017 | M | 2,500 | D | — | — | Common Stock | 2,500 | 20,000 | D |
| Restricted Stock UnitsF7,F11 | $0.00 | Feb 1, 2017 | M | 10,000 | D | — | — | Common Stock | 10,000 | 30,000 | D |
Explanation of responses
- F1Vesting of restricted stock unit ("RSUs") granted to the Reporting Person on February 13, 2013.
- F1025% of the RSUs vest on February 1, 2016, then the remaining 75% of the RSUs vest in equal installments on each quarterly anniversary thereafter, until such time as the RSUs are 100% vested, subject to the continuing employment of the Reporting Person on each vesting date. Shares of the Issuer's common stock will be delivered to the Reporting Person upon vesting.
- F1125% of the RSUs vest on February 1, 2017, then the remaining 75% of the RSUs vest in equal installments on each quarterly anniversary thereafter, until such time as the RSUs are 100% vested, subject to the continuing employment of the Reporting Person on each vesting date. Shares of the Issuer's common stock will be delivered to the Reporting Person upon vesting.
- F2Vesting of RSUs granted to the Reporting Person on February 12, 2014.
- F3Vesting of RSUs granted to the Reporting Person on February 11, 2015.
- F4Vesting of RSUs granted to the Reporting Person on February 11, 2016.
- F5Represents shares earned by the Reporting Person as a result of the vesting of performance stock units ("PSUs") granted to the Reporting Person on February 11, 2015.
- F6Exempt transaction pursuant to Section 16b-3(e) - payment of exercise price or tax liability by delivering or withholding securities incident to the receipt, exercise or vesting of a security issued in accordance with Rule 16b-3. All of the shares reported as disposed of in this Form 4 were relinquished by the Reporting Person and cancelled by the Issuer in exchange for the Issuer's agreement to pay federal and state tax withholding obligations of the Reporting Person resulting from the vesting of RSUs and PSUs. The Reporting Person did not sell or otherwise dispose of any of the shares reported on this Form 4 for any reason other than to cover required taxes.
- F7Each RSU represents a contingent right to receive one share of the Issuer's common stock.
- F825% of the RSUs vest on February 1, 2014, then the remaining 75% of the RSUs vest in equal installments on each quarterly anniversary thereafter, until such time as the RSUs are 100% vested, subject to the continuing employment of the Reporting Person on each vesting date. Shares of the Issuer's common stock will be delivered to the Reporting Person upon vesting.
- F925% of the RSUs vest on February 1, 2015, then the remaining 75% of the RSUs vest in equal installments on each quarterly anniversary thereafter, until such time as the RSUs are 100% vested, subject to the continuing employment of the Reporting Person on each vesting date. Shares of the Issuer's common stock will be delivered to the Reporting Person upon vesting.