FORM 4 |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940 |
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). |
1. Name and Address of Reporting Person*
(Street)
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2. Issuer Name and Ticker or Trading Symbol
NORTEL NETWORKS CORP [ NT ] |
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
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3. Date of Earliest Transaction
(Month/Day/Year) 02/03/2004 | ||||||||||||||||||||||||||
4. If Amendment, Date of Original Filed
(Month/Day/Year) |
6. Individual or Joint/Group Filing (Check Applicable Line)
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Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned | ||||||||||
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1. Title of Security (Instr. 3) | 2. Transaction Date (Month/Day/Year) | 2A. Deemed Execution Date, if any (Month/Day/Year) | 3. Transaction Code (Instr. 8) | 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) | 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) | 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) | 7. Nature of Indirect Beneficial Ownership (Instr. 4) | |||
Code | V | Amount | (A) or (D) | Price | ||||||
Common Shares(1) | 02/03/2004 | A | 287,500(1) | A | (1) | 430,251 | D | |||
Common Shares(1) | 02/03/2004 | F | 66,715(1) | D | $8.0655(1) | 430,251 | D | |||
Common Shares(1) | 02/03/2004 | D | 143,750(1) | D | $6.3637(1) | 430,251 | D |
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) | |||||||||||||||
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1. Title of Derivative Security (Instr. 3) | 2. Conversion or Exercise Price of Derivative Security | 3. Transaction Date (Month/Day/Year) | 3A. Deemed Execution Date, if any (Month/Day/Year) | 4. Transaction Code (Instr. 8) | 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) | 6. Date Exercisable and Expiration Date (Month/Day/Year) | 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) | 8. Price of Derivative Security (Instr. 5) | 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) | 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) | 11. Nature of Indirect Beneficial Ownership (Instr. 4) | ||||
Code | V | (A) | (D) | Date Exercisable | Expiration Date | Title | Amount or Number of Shares | ||||||||
Restricted Stock Units(1) | (1) | 02/03/2004 | M | 287,500 | 02/03/2004 | 02/03/2004 | Common Shares | 287,500 | (1) | 0 | D | ||||
Investment Fund Units(2) | (2) | (2) | (2) | Common Shares | 50,646.9(2) | 2,688.57 | D | ||||||||
01/24/95 Grant of Options(3) | $4.21(6) | (7) | 01/23/2005 | Common Shares | 60,000 | 60,000 | D | ||||||||
01/25/96 Grant of Options(3) | $5.62(8) | (7) | 01/24/2006 | Common Shares | 120,000 | 120,000 | D | ||||||||
01/25/96 Grant of Options(3) | $5.62(8) | (7) | 01/24/2006 | Common Shares | 60,000 | 60,000 | D | ||||||||
01/25/96 Grant of Options(3)(4) | (4) | (4) | 01/24/2006 | Common Shares | 120,000 | 120,000 | D | ||||||||
01/30/97 Grant of Options(3) | $8.85(9) | (7) | 01/29/2007 | Common Shares | 60,000 | 60,000 | D | ||||||||
01/29/98 Grant of Options(3) | $11.29(10) | (7) | 01/28/2008 | Common Shares | 64,000 | 64,000 | D | ||||||||
10/29/98 Grant of Options(3) | $10.15(11) | (7) | 10/28/2008 | Common Shares | 60,000 | 60,000 | D | ||||||||
01/28/99 Grant of Options(3) | $15.53(12) | (7) | 01/27/2009 | Common Shares | 20,000 | 20,000 | D | ||||||||
07/29/99 Grant of Options(3) | $21.94(13) | (7) | 07/28/2009 | Common Shares | 72,000 | 72,000 | D | ||||||||
01/27/00 Grant of Options(3) | $49.61(14) | (7) | 01/26/2010 | Common Shares | 100,000 | 100,000 | D | ||||||||
06/09/00 Grant of Options(3) | $59.41(15) | (7) | 06/08/2010 | Common Shares | 100,000 | 100,000 | D | ||||||||
01/25/01 Grant of Options(5) | $38.25(16) | (7) | 01/24/2011 | Common Shares | 150,000 | 150,000 | D | ||||||||
10/25/01 Grant of Options(3) | $5.89(17) | (7) | 10/25/2007 | Common Shares | 500,000 | 500,000 | D | ||||||||
02/28/02 Grant of Options(3) | $5.15(18) | (19) | 02/27/2012 | Common Shares | 250,000 | 250,000 | D |
Explanation of Responses: |
1. In settlement of the participant's restricted stock units issued pursuant to the Nortel Networks Limited Restricted Stock Unit Plan as amended (the "RSU Plan"), 77,035 common shares of Nortel Networks Corporation ("NNC") were delivered to the participant; the cash equivalent of 66,715 NNC common shares valued at $10.7871 Cdn. (the Canadian dollar equivalent of. $8.0655 U.S) per share was withheld by Nortel Networks Limited to meet certain tax withholding obligations; and 143,750 of the restricted stock units were settled for cash at a value of $8.5110 Cdn. (the Canadian dollar equivalent of $6.3637 U.S.) per share, the average closing price of NNC common shares over a 20 trading day period in accordance with the RSU Plan. The Canadian dollar amounts were converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on February 3, 2004. |
2. 2,688.57 company stock fund units are held in the participant's account as a result of the participant's contributions, vested company contributions and/or investment earnings thereon invested in the company stock fund (the "Stock Fund") pursuant to the Nortel Networks Limited Investment Plan for Employees - Canada (the "Canadian Investment Plan") as of January 28, 2004. The Stock Fund invests primarily in NNC common shares. As of January 28, 2004, the participant's company stock fund units repr esent approximately 50,646.90 common shares of NNC. The Canadian Investment Plan is administered as a unitized fund by Sun Life Assurance Company of Canada and the number of shares represented by each unit fluctuates on a daily basis. |
3. The reported options were granted pursuant to the Nortel Networks Corporation 1986 Stock Option Plan As Amended and Restated (the "1986 Stock Option Plan"). |
4. These replacement options were granted pursuant to the Key Contributor Program under the 1986 Stock Option Plan. Under the terms of Key Contributor Program, a Participant is granted concurrently an equal number of initial options and replacement options. The replacement options expire ten years from the date of grant and have an exercise price equal to the market value (as defined in the 1986 Stock Option Plan) of common shares on the date the initial options are fully exercised, provided that i n no event will the exercise price be less than the market value (as defined in the 1986 Stock Option Plan) on the date of grant. Subject to certain holding requirements with respect to shares received from the exercise of the initial options, the replacement options are generally exercisable commencing 36 months from the date all of the initial options are fully exercised. |
5. The reported options were granted pursuant to the Nortel Networks Corporation 2000 Stock Option Plan. |
6. Represents the exercise price of $5.9563 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
7. The reported options are currently vested. |
8. Represents the exercise price of $7.7350 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
9. Represents the exercise price of $11.9313 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
10. Represents the exercise price of $16.5250 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
11. Represents the exercise price of $15.7250 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
12. Represents the exercise price of $23.70 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
13. Represents the exercise price of $33.0825 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
14. Represents the exercise price of $71.1450 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
15. Represents the exercise price of $87.71 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
16. Represents the exercise price of $57.67 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
17. Represents the exercise price of $9.29 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
18. Represents the exercise price of $8.27 Cdn. as converted into U.S. dollars using the noon rate of exchange of the Bank of Canada on the date of grant. |
19. The reported options are currently vested as to 83,333 NNC common shares and will vest as to 83,333 NNC common shares on February 28, 2004 and as to 83,334 NNC common shares on February 28, 2005. |
K.E. McCarthy, Attorney for D. Gregory Mumford | 02/05/2004 | |
** Signature of Reporting Person | Date | |
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. | ||
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v). | ||
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). | ||
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure. | ||
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number. |