SEC FORM 4

SEC Form 4

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^*

LEHMAN BROTHERS HOLDINGS INC

(Last)

(First)

(Middle)

745 SEVENTH AVENUE

(Street)

NEW YORK

10019

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
ShoreTel Inc [ SHOR ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director	X	10% Owner
Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
07/03/2007

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
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)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	07/03/2007		P		483	A	$11.56	192,584	I	By Lehman Brothers Inc.
Common Stock	07/03/2007		P		1,000	A	$12.92	193,584	I	By Lehman Brothers Inc.
Common Stock	07/03/2007		P		1,000	A	$12.93	194,584	I	By Lehman Brothers Inc.
Common Stock	07/05/2007		S		2,000	D	$12.23	192,584	I	By Lehman Brothers Inc.
Common Stock	07/05/2007		S		483	D	$12.73	192,101	I	By Lehman Brothers Inc.
Common Stock	07/09/2007		C		7,374,730	A	$0.00⁽¹⁾	7,566,831	I	See Footnote⁽²⁾

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
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)
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)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Series E Convertible Preferred Stock	$0.00⁽¹⁾	07/09/2007		C			1,600,851	⁽³⁾	⁽⁴⁾	Common Stock	1,600,851	$0.00	0	I	See Footnote⁽⁵⁾
Series F Convertible Preferred Stock	$0.00⁽¹⁾	07/09/2007		C			3,742,046	⁽³⁾	⁽⁴⁾	Common Stock	3,742,046	$0.00	0	I	See Footnote⁽⁶⁾
Series G Convertible Preferred Stock	$0.00⁽¹⁾	07/09/2007		C			607,424	⁽³⁾	⁽⁴⁾	Common Stock	607,424	$0.00	0	I	See Footnote⁽⁷⁾
Series H Convertible Preferred Stock	$0.00⁽¹⁾	07/09/2007		C			1,424,409	⁽³⁾	⁽⁴⁾	Common Stock	1,424,409	$0.00	0	I	See Footnote⁽⁸⁾

Explanation of Responses:

1. Mandatory conversion of Series E, Series F, Series G and Series H Convertible Preferred Stock on a 1-for-1 basis upon closing of the Issuer's initial public offering.

2. By indirect wholly-owned subsidiaries of the Reporting Persons: 1,176,001 shares held by LB I Group Inc.; 169,231 shares held by Lehman Brothers Offshore Partnership Account 2000/2001, L.P.; 1,448,292 shares held by Lehman Brothers P.A. LLC; 652,525 shares held by Lehman Brothers Partnership Account 2000/2001, L.P.; 3,203,592 shares held by Lehman Brothers VC Partners 2002 L.P.; 917,190 shares held by Lehman Brothers Venture Capital Partners II, L.P.

3. Immediately

4. The preferred stock has no expiration date.

5. By indirect wholly-owned subsidiaries of the Reporting Persons: 35,803 shares held by Lehman Brothers Offshore Partnership Account 2000/2001, L.P.; 306,403 shares held by Lehman Brothers P.A. LLC; 138,049 shares held by Lehman Brothers Partnership Account 2000/2001, L.P.; 926,554 shares held by Lehman Brothers VC Partners 2002 L.P.; 194,042 shares held by Lehman Brothers Venture Capital Partners II, L.P.

6. By indirect wholly-owned subsidiaries of the Reporting Persons: 83,690 shares held by Lehman Brothers Offshore Partnership Account 2000/2001, L.P.; 716,228 shares held by Lehman Brothers P.A. LLC; 322,695 shares held by Lehman Brothers Partnership Account 2000/2001, L.P.; 2,165,852 shares held by Lehman Brothers VC Partners 2002 L.P.; 453,581 shares held by Lehman Brothers Venture Capital Partners II, L.P.

7. By indirect wholly-owned subsidiaries of the Reporting Persons: 351,570 shares held by LB I Group Inc.; 13,585 shares held by Lehman Brothers Offshore Partnership Account 2000/2001, L.P.; 116,261 shares held by Lehman Brothers P.A. LLC; 52,381 shares held by Lehman Brothers Partnership Account 2000/2001, L.P.; 73,627 shares held by Lehman Brothers Venture Capital Partners II, L.P.

8. By indirect wholly-owned subsidiaries of the Reporting Persons: 824,431 shares held by LB I Group Inc.; 31,857 shares held by Lehman Brothers Offshore Partnership Account 2000/2001, L.P.; 272,632 shares held by Lehman Brothers P.A. LLC; 122,834 shares held by Lehman Brothers Partnership Account 2000/2001, L.P.; 172,655 shares held by Lehman Brothers Venture Capital Partners II, L.P.

Remarks:

See Exhibit 99.1 for Joint Filer Information

	/s/ Barrett S. DiPaolo	07/10/2007
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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