SEC Form 4 · accession 0001437749-16-038132
DSP GROUP INC /DE/ · DSPG
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owner
Ofer Elyakim
Officer — CEO · Director
Period of report
Aug 24, 2016
Accepted (ET)
Aug 26, 2016 · 4:30 pm EDT
Rule 10b5-1 plan
unknown — predates the checkbox
Issuer CIK
0000915778
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Common Stock | Aug 24, 2016 | M | 78,186 | $7.26 | A | 442,302 | D | |
| Common StockF1 | Aug 24, 2016 | D | 48,186 | $11.78 | D | 394,116 | D | |
| Common StockF3 | Aug 24, 2016 | S | 30,000 | $12.0165 | D | 364,116 | D | |
| Common Stock | Aug 25, 2016 | M | 38,024 | $7.26 | A | 402,140 | D | |
| Common StockF4 | Aug 25, 2016 | D | 23,024 | $11.99 | D | 379,116 | D | |
| Common StockF5 | Aug 25, 2016 | S | 15,000 | $11.92 | D | 364,116 | D |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Stock Appreciation RightF6,F7 | $7.26 | Aug 24, 2016 | M | 78,186 | D | — | Jan 27, 2017 | Common Stock | 52,124 | 0 | D |
| Stock Appreciation RightF6,F7 | $7.26 | Aug 25, 2016 | M | 38,024 | D | — | Jan 27, 2017 | Common Stock | 25,349 | 0 | D |
Explanation of responses
- F1This represents the difference between the number of SARs exercised (78,186) and the number of shares issued as a result of the exercise (30,000). The number of shares to be issued under a SAR exercise is determined by multiplying the number of SARs being exercised by the difference between the FMV on the date immediately prior to the date the SAR is exercised ($11.78) and the base price ($7.26). The SARs were issued from a plan that will expire in January 2017.
- F2The sales were in response to the disparate tax treatment under the Israeli tax ruling that would have resulted in significant adverse tax consequences for Mr. Elyakim to hold the exercised SARs as opposed to selling the same.
- F3The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $11.96 to $12.07, inclusive. The reporting person undertakes to provide to DSP Group, Inc., any security holder of DSP Group, Inc., or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the ranges set forth in this footnote to this Form 4.
- F4This represents the difference between the number of SARs exercised (38,024) and the number of shares issued as a result of the exercise (15,000). The number of shares to be issued under a SAR exercise is determined by multiplying the number of SARs being exercised by the difference between the FMV on the date immediately prior to the date the SAR is exercised ($11.99) and the base price ($7.26). The SARs were issued from a plan that will expire in January 2017.
- F5Represents 95,888 shares outstanding, 144,213 vested RSUs, and 124,015 unvested RSUs.
- F6The Stock Appreciation Right vests 25% after 1 year and 6.25% each quarter thereafter.
- F7The Stock Appreciation Right grant is subject to a ceiling such that when the fair market value of the Company's common stock is equal to or great than three times the base appreciation amount of the stock appreciation right, the portion of the stock appreciation rights that is vested on such date is automatically exercised on the next trading day and the appreciation amount is paid by the issuance of the respective number of shares of the Company's common stock. Therefore, the number of underlying shares of common stock that may be received upon exercise cannot exceed 2/3 of the number of stock appreciation rights granted.