4 1 form-4.txt FORM 4 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940 [X] Check 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* Montague John E. -------------------------------------------------------------------------------- (Last) (First) (Middle) 18880 Homestead Road -------------------------------------------------------------------------------- (Street) Cupertino CA 95014 -------------------------------------------------------------------------------- (City) (State) (Zip) ________________________________________________________________________________ 2. Issuer Name and Ticker or Trading Symbol Rational Software Corporation (NASDAQ:RATL) ________________________________________________________________________________ 3. IRS Identification Number of Reporting Person, if an Entity (Voluntary) ________________________________________________________________________________ 4. Statement for Month/Year March 7, 2003 ________________________________________________________________________________ 5. If Amendment, Date of Original (Month/Year) ________________________________________________________________________________ 6. Relationship of Reporting Person to Issuer (Check all applicable) [X] Director [_] 10% Owner [_] Officer (give title below) [_] Other (specify below) ________________________________________________________________________________ 7. 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 ================================================================================
2A. 6. Deemed 4. 5. Owner- Execu- Securities Acquired (A) or Amount of ship tion 3. Disposed of (D) Securities Form: 7. Date, if Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of 2. any Code ------------------------------- Owned at End (D) or Indirect 1. Transaction (Month) (Instr. 8) (A) of Month Indirect Beneficial Title of Security Date Day/ ------------ Amount or Price (Instr. 3 (I) Ownership (Instr. 3) (mm/dd/yy) Year) Code V (D) and 4) (Instr.4) (Instr. 4) ------------------------------------------------------------------------------------------------------------------------------------ Common Stock, par value $0.01 per share 02/21/03 U 7,200(1) D $10.50 0 D ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
* If the Form is filed by more than one Reporting Person, see Instruction 4(b)(v). Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Print or Type Response) (Over) FORM 4 (continued) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) ================================================================================
10. 9. Owner- Number ship of Form 2. Deriv- of Conver- 5. 7. ative Deriv- 11. sion Number of Title and Amount Secur- ative Nature or Derivative 6. of Underlying 8. ities Secur- of Exer- 4. Securities Date Securities Price Bene- ity: In- cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene- 1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner- Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr. (Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4) ------------------------------------------------------------------------------------------------------------------------------------ Non-Qualified $5.9900 02/21/03 C 40,000 08/15/02 08/15/12 Common 40,000 0 D Stock Option (2) Stock right to buy) $0.01/ share PV ------------------------------------------------------------------------------------------------------------------------------------ Non-Qualified $8.0000 02/21/03 C 17,000 09/25/97 09/25/07 Common 17,000 0 D Stock Option (2) Stock (right to buy) $0.01/ share PV ------------------------------------------------------------------------------------------------------------------------------------ Non-Qualified $8.0625 02/21/03 C 34,000 08/05/98 08/05/08 Common 34,000 0 D Stock Option (2) Stock (right to buy) $0.01/ share PV ------------------------------------------------------------------------------------------------------------------------------------ Non-Qualified $14.8125 02/21/03 C 34,000 08/26/00 08/26/10 Common 34,000 0 D Stock Option (2) Stock (right to buy) $0.01/ share PV ------------------------------------------------------------------------------------------------------------------------------------ Non-Qualified $16.5300 02/21/03 H 40,000 07/19/01 07/19/11 Common 40,000 0 D Stock Option (3) Stock (right to buy) $0.01/ share PV ------------------------------------------------------------------------------------------------------------------------------------ Non-Qualified $52.2800 02/21/03 H 40,000 08/17/00 08/17/10 Common 40,000 0 D Stock Option (3) Stock (right to buy) $0.01/ share PV ====================================================================================================================================
Page 2 Explanation of Responses: /s/ David J. Henshall 03/07/03 --------------------------------------------- ----------------------- David J. Henshall Date by Power of Attorney ** 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 provided is insufficient, see Instruction 6 for procedure. Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number (1) Pursuant to the terms of the Agreement and Plan of Merger, dated as of December 6, 2002, among International Business Machines Corporation, a New York corporation ("IBM"), Barron Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of IBM, and Rational Software Corporation, a Delaware corporation ("Rational"), (the "Merger Agreement"), at the effective time of the merger contemplated therein, each outstanding share of Rational common stock, par value $0.01 per share, except for certain limited exceptions, was converted into the right to receive $10.50 in cash, without interest. (2) Pursuant to the terms of the Merger Agreement, at the effective time of the merger contemplated therein, each stock option granted under Rational's stock option plans with an exercise price of less than $15.57 was converted into an option to acquire, on the same terms and conditions as were applicable prior to the effective time of the merger (other than exercise price), a number of shares of IBM common stock, par value $0.20 per share, determined by multiplying the number of shares of Rational common stock subject to the option by an exchange ratio of 0.135. The exercise price per share of IBM common stock under each converted stock option is equal to the per share exercise price for the shares of Rational common stock otherwise purchaseable pursuant to the stock option divided by the exchange ratio of 0.135. (3) Pursuant to the terms of the Merger Agreement, each stock option granted under Rational's stock option plans with an exercise price equal to or greater than $15.57 per share was terminated prior to the effective time of the merger contemplated in the Merger Agreement. Page 3