SEC Form 4 · accession 0001391127-16-000221
Limelight Networks, Inc. · LLNW
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owner
Sajid Malhotra
Officer — CFO (Interim)
Period of report
Apr 29, 2016
Accepted (ET)
May 3, 2016 · 12:20 pm EDT
Rule 10b5-1 plan
unknown — predates the checkbox
Issuer CIK
0001391127
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Common StockF1,F2 | Apr 29, 2016 | A | 7,596 | $1.75 | A | 935,965 | D | |
| Common StockF2 | Apr 29, 2016 | F | 2,344 | $1.75 | D | 933,621 | D | |
| Common StockF5,F6 | Apr 29, 2016 | A | 100,000 | $0.00 | A | 1,033,621 | D |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-qualified stock option (Right to Buy)F5,F7 | $1.75 | Apr 29, 2016 | A | 200,000 | A | Jun 1, 2017 | Apr 29, 2026 | Common Stock | 200,000 | 200,000 | D |
Explanation of responses
- F1Consists of a stock award in connection with the Company's 2015 Salary-for-Equity program made pursuant to the Company's 2007 Equity Incentive Plan. Reporting Person elected to participate in this program and receive payment of 50% of his base salary in shares of the Company's common stock. The number of shares issued was determined by (i) dividing 1/12 of Reporting Person's enrolled salary by (ii) the trailing 30-day closing average of the Company's common stock ($1.71 / share), rounded up to the nearest whole share.
- F2This includes 284,506 unvested restricted stock units.
- F3The forfeiture reported in this row represents shares that were withheld by the Company solely for the purpose of satisfying tax obligations arising upon the issuance of 7,596 shares pursuant to the Company's 2015 Salary-for-Equity program.
- F4The Reporting Person received an aggregate of 100,000 restricted stock units. Subject to the provisions of the 2007 Equity Incentive Plan and Reporting Person's employment and restricted stock unit agreements with the Company, one-third (1/3rd) of the restricted stock units will vest on June 1, 2017, and an additional one-twelfth (1/12th) will vest on the first day of each September, December, March, and June thereafter until all of the RSUs have vested, provided the recipient continues to be a Service Provider through each such vesting date.
- F5$0.00 is used for technical reasons as there is no price for this security until it vests in the case of RSUs, or until it is exercised in the case of stock options.
- F6This includes 384,506 unvested restricted stock units.
- F7Reporting Person received an aggregate of 200,000 stock options. Subject to the provisions of the 2007 Equity Incentive Plan and Reporting Person's employment and stock option agreements with the Company, one-third (1/3rd) of the shares subject to the stock option will vest on June 1, 2017, and one-thirty-sixth (1/36th) of the stock options will vest on the first day of July, 2017, and on the first day of each month thereafter until all of the Stock Options have vested (three years), provided the Reporting Person continues to be a Service Provider through each such vesting date.
Remarks
Executed pursuant to the Limited Power of Attorney for Section 16 reporting obligations dated March 25, 2014.