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*
Paddock Bradley W
(Last) (First) (Middle)
KYPHON INC.
1221 CROSSMAN AVENUE
(Street)
SUNNYVALE CA 94089
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
KYPHON INC [ KYPH ] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
Director 10% Owner
X Officer (give title below) Other (specify below)
VP, US Sales
3. Date of Earliest Transaction (Month/Day/Year)
08/15/2007
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)
Code V Amount (A) or (D) Price
Common Stock 08/15/2007 M 41 A $24.18 8,848 D
Common Stock 08/15/2007 S(1) 41 D $65.3431 8,807 D
Common Stock 08/15/2007 M 438 A $20.83 9,245 D
Common Stock 08/15/2007 S(1) 438 D $65.3431 8,807 D
Common Stock 08/15/2007 M 31 A $23.57 8,838 D
Common Stock 08/15/2007 S(1) 31 D $65.3431 8,807 D
Common Stock 08/15/2007 M 4,490 A $24.06 13,297 D
Common Stock 08/15/2007 S(1) 4,490 D $65.3431 8,807(2) D
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)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (Right To Buy) $24.18 08/15/2007 M 41 02/09/2004(3) 01/09/2014 Common Stock 41 $0 205,061(4) D
Employee Stock Option (Right To Buy) $20.83 08/15/2007 M 438 04/24/2004(3) 03/24/2014 Common Stock 438 $0 204,623(5) D
Employee Stock Option (Right To Buy) $23.57 08/15/2007 M 31 09/19/2004(3) 08/19/2014 Common Stock 31 $0 204,592(6) D
Employee Stock Option (Right To Buy) $24.06 08/15/2007 M 4,490 01/01/2005(3) 12/01/2014 Common Stock 4,490 $0 200,102(7) D
Explanation of Responses:
1. Sale made pursuant to a 10b5-1 trading plan.
2. Total includes 1,053 shares purchased in August 2006 and 754 shares purchased in February 2007 by Reporting Person under Issuer's Employee Stock Purchase Plan and 7,000 Restricted Stock Units awarded August 2007.
3. This option vests according to the following schedule: 1/48th per month beginning on the date exercisable.
4. Includes 53 shares exercisable at $24.18, granted on 1/9/04; 1,605 shares exercisable at $20.83 granted on 3/24/04; 167 shares exercisable at $23.57 per share, granted on 8/19/04, 123,236 shares exercisable at $24.06, granted on 12/1/04; 50,000 shares execisable at $37.65 per share, granted on 7/21/05 and 30,000 shares exercisable at $39.27 per share, granted on 9/15/06.
5. Includes 53 shares exercisable at $24.18, granted on 1/9/04; 1,167 shares exercisable at $20.83 granted on 3/24/04; 167 shares exercisable at $23.57 per share, granted on 8/19/04, 123,236 shares exercisable at $24.06, granted on 12/1/04; 50,000 shares execisable at $37.65 per share, granted on 7/21/05 and 30,000 shares exercisable at $39.27 per share, granted on 9/15/06.
6. Includes 53 shares exercisable at $24.18, granted on 1/9/04; 1,167 shares exercisable at $20.83 granted on 3/24/04; 136 shares exercisable at $23.57 per share, granted on 8/19/04, 123,236 shares exercisable at $24.06, granted on 12/1/04; 50,000 shares execisable at $37.65 per share, granted on 7/21/05 and 30,000 shares exercisable at $39.27 per share, granted on 9/15/06.
7. Includes 53 shares exercisable at $24.18, granted on 1/9/04; 1,167 shares exercisable at $20.83 granted on 3/24/04; 136 shares exercisable at $23.57 per share, granted on 8/19/04, 118,746 shares exercisable at $24.06, granted on 12/1/04; 50,000 shares execisable at $37.65 per share, granted on 7/21/05 and 30,000 shares exercisable at $39.27 per share, granted on 9/15/06.
David M. Shaw, Attorney-in-Fact 08/16/2007
** 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).
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