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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
Blumenthal, Randall A.
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(Last) (First) (Middle)
c/o Goldman, Sachs & Co.
85 Broad Street
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(Street)
New York, New York 10004
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
StorageNetworks, Inc.
(STOR)
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3. I.R.S. Identification Number of Reporting Person, if an entity (voluntary)
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4. Statement for Month/Year
July/2000
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
[ X ] Director [ ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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7. Individual or Joint/Group Filing (Check Applicable Line)
[ X ] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
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<TABLE>
<CAPTION>
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Table I -- Non-Derivative Securities Acquired, Disposed of, |
or Beneficially Owned |
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| | | | |6. | |
| | | 4. |5. |Owner- | |
| | | Securities Acquired (A) or |Amount of |ship | |
| | 3. | Disposed of (D) |Securities |Form: |7. |
|2. | Transaction| (Instr. 3, 4 and 5) |Beneficially |Direct |Nature of |
|Transaction | Code | -------------------------------|Owned at End |(D) or |Indirect |
1. |Date | (Instr. 8) | | (A) | |of Month |Indirect |Beneficial|
Title of Security |(Month/Day/ | -----------| Amount | or | Price |(Instr. 3 |(I) |Ownership |
(Instr. 3) |Year) | Code | V | | (D) | |and 4) |(Instr.4)|(Instr. 4)|
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
| | | | | | | | | |
Common Stock | 7/6/00 | C(01)| | 10,162,596 | A | | 11,465,888 | I | 02,03 |
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</TABLE>
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).
FORM 4 (continued)
<TABLE>
<CAPTION>
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Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned |
(e.g., puts, calls, warrants, options, convertible securities) |
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| | | | | | | |9. |10. | |
| | | | | | | |Number |Owner-| |
| | | | | | | |of |ship | |
|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) |
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<S> <C> <C> <C> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series B | | | | | | | | | | | | | | |
Convertible | | | | | | | | | | | | | | |
Preferred Stock| 01 | 7/6/00|C(01)| | |5,081,298| 01 | 01 |Common Stock |10,162,596| | -0- | I | 02,03|
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Stock Option | | | | | | | | | | | | | | |
(right to buy) | $8.00 | | | | | | 04 |01/27/10|Common Stock | 25,000| | 25,000 | 04 | 02,04|
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</TABLE>
Explanation of Responses:
01: Each share of Series B Convertible Preferred Stock ("Series B Stock") was
automatically converted into two shares of the Issuer's Common Stock upon the
completion by the Issuer of an initial public offering of its Common Stock.
Accordingly, in aggregate 5,018,298 shares of Series B Stock owned by certain
investment partnerships of which affiliates of Goldman, Sachs & Co. ("Goldman
Sachs") and The Goldman Sachs Group, Inc. ("GS Group") are the general partner
or managing partner (the "Limited Partnerships") were converted into 10,162,596
shares of Common Stock.
02: The Reporting Person is a managing director of Goldman Sachs. Goldman Sachs
is an indirect wholly-owned subsidiary of GS Group. The Reporting Person
disclaims beneficial ownership of the securities reported herein except to the
extent of his pecuniary interest therein, if any.
03: Goldman Sachs and GS Group may be deemed to own beneficially and indirectly
11,465,888 shares of Common Stock through the Limited Partnerships. Goldman
Sachs is the investment manager of certain of the Limited Partnerships.
04: These options were granted pursuant to the Issuer's Amended and Restated
1998 Stock Incentive Plan to the Reporting Person. The option is immediately
exercisable in full, subject to the Issuer's right to repurchase a percentage of
any shares of Common Stock issued upon exercise of the option ("Shares"), as
follows: If the Reporting Person ceases to be either an employee, officer or
director of the Issuer prior to 01/26/01, the Issuer has the right to repurchase
100% of the Shares. If the Reporting Person ceases to be either an employee,
officer or director of the Issuer at any time during the 12 month period between
01/26/01 and 01/26/02, the Issuer has the right to repurchase 50% of the Shares.
These repurchase rights of the Issuer terminate in any event upon certain
acquisition events of the Issuer or upon the death or disability of the
Reporting Person. The Reporting Person has an understanding with GS Group
pursuant to which he holds such options for the benefit of GS Group.
By: s/ Roger S. Begelman August 10, 2000
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**Signature of Reporting Person Date
Attorney-in-fact
** 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 procedures.
Alternatively, this Form is permitted to be submitted to the
Commission in electronic format at the option of the reporting person
pursuant to Rule 101(b)(4) of Regulation S-T.