SEC Form 4 · accession 0001140361-17-041048
Fortinet, Inc. · FTNT
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owner
Michael Xie
Officer — VP, Engineering & CTO · Director
Period of report
Nov 1, 2017
Accepted (ET)
Nov 3, 2017 · 7:03 pm EDT
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 StockF1,F2 | Oct 5, 2017 | G | 1,031,507 | $0.00 | D | 0 | I | See Footnote |
| Common StockF1,F3 | Oct 5, 2017 | G | 1,031,507 | $0.00 | D | 0 | I | See Footnote |
| Common StockF1,F4 | Oct 5, 2017 | G | 2,063,014 | $0.00 | A | 3,728,314 | I | See footnote |
| Common Stock | Nov 1, 2017 | M | 2,500 | $0.00 | A | 6,714,500 | D | |
| Common Stock | Nov 1, 2017 | M | 2,500 | $0.00 | A | 6,717,000 | D | |
| Common Stock | Nov 1, 2017 | M | 2,500 | $0.00 | A | 6,719,500 | D | |
| Common Stock | Nov 1, 2017 | F | 3,915 | $38.77 | D | 6,715,585 | D | |
| Common StockF10,F11 | Nov 2, 2017 | S | 3,585 | $38.6028 | D | 6,712,000 | D | |
| Common StockF12 | holding | — | — | — | 1,991,686 | I | See Footnote |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Restricted Stock UnitsF13,F14 | $0.00 | Nov 1, 2017 | M | 2,500 | D | — | — | Common Stock | 2,500 | 2,500 | D |
| Restricted Stock UnitsF13,F15 | $0.00 | Nov 1, 2017 | M | 2,500 | D | — | — | Common Stock | 2,500 | 12,500 | D |
| Restricted Stock UnitsF13,F16 | $0.00 | Nov 1, 2017 | M | 2,500 | D | — | — | Commn Stock | 2,500 | 22,500 | D |
Explanation of responses
- F1Reflects a prior re-registration of 601,406 shares into the name of The K.A. Children's Trust dated February 9, 2011.
- F10Represents the aggregate of sales effected on the same day at different prices
- F11Represents the weighted average sales price per share. The shares sold at prices ranging from $38.24 to $38.83 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer.
- F12Shares held directly by the 2010 K.A. Family Trust dated May 3, 2010, for which the Reporting Person serves as a trustee.
- F13Each RSU represents a contingent right to receive one share of the Issuer's common stock.
- F1425% 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.
- F1525% 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.
- F1625% 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.
- F2Shares held directly by the 2014 Michael Xie Grantor Retained Annuity Trust dated March 6, 2014, for which the Reporting Person serves as a trustee.
- F3Shares held directly by the 2014 Danke Wu Grantor Retained Annuity Trust dated March 6, 2014, for which the Reporting Person serves as a trustee.
- F4Shares held directly by The K.A. Children's Trust dated February 9, 2011, for which the Reporting Person serves as a trustee.
- F5Vesting of restricted stock units ("RSUs") granted to the Reporting Person on February 12, 2014.
- F6Vesting of RSUs granted to the Reporting Person on February 11, 2015.
- F7Vesting of RSUs granted to the Reporting Person on February 11, 2016.
- F8Exempt 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 on this line 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.
- F9The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on August 12, 2016.