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*
PALMOUR JOHN W

(Last) (First) (Middle)
C/O CREE, INC.
4600 SILICON DRIVE

(Street)
DURHAM NC 27703

(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
CREE INC [ CREE ]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
X Director 10% Owner
Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
12/01/2009
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 12/01/2009 M 30,000 A $31.24 604,416 D
COMMON STOCK 12/01/2009 S(1) 1,500 D $49 602,916 D
COMMON STOCK 12/01/2009 S(1) 8,500 D $49.0006 594,416 D
COMMON STOCK 12/01/2009 S(1) 1,000 D $49.0092 593,416 D
COMMON STOCK 12/01/2009 S(1) 1,000 D $49.01 592,416 D
COMMON STOCK 12/01/2009 S(1) 1,500 D $49.02 590,916 D
COMMON STOCK 12/01/2009 S(1) 1,000 D $49.023 589,916 D
COMMON STOCK 12/01/2009 S(1) 1,500 D $49.03 588,416 D
COMMON STOCK 12/01/2009 S(1) 3,500 D $49.04 584,916 D
COMMON STOCK 12/01/2009 S(1) 1,000 D $49.05 583,916 D
COMMON STOCK 12/01/2009 S(1) 1,500 D $49.0503 582,416 D
COMMON STOCK 12/01/2009 S(1) 1,000 D $49.0505 581,416 D
COMMON STOCK 12/01/2009 S(1) 1,500 D $49.0853 579,916 D
COMMON STOCK 12/01/2009 S(1) 1,500 D $49.0951 578,416 D
COMMON STOCK 12/01/2009 S(1) 2,000 D $49.1003 576,416 D
COMMON STOCK 12/01/2009 S(1) 2,000 D $49.11 574,416(2) D(3)
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
NONQUALIFIED STOCK OPTION (RIGHT TO BUY) $31.24 12/01/2009 M 30,000 04/15/2005 10/01/2011 COMMON STOCK 30,000 $0 0 D
Explanation of Responses:
1. The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by Dr. Palmour on February 13, 2009.
2. Includes 388 shares purchased by Dr. Palmour on October 31, 2009 under the Cree, Inc. 2005 Employee Stock Purchase Plan.
3. Of the 574,416 shares reported, 534,416 shares are held by Dr. Palmour directly and 40,000 shares are held indirectly by Dr. Palmour's spouse.
Remarks:
Tamara Cappelson, Attorney-In-Fact 12/03/2009
** 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.