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SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K/ A


(Amendment No. 2)





|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(MARK ONE) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2004                                                 
|          
|OR        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to                                             

Commission file number 000-27723


SonicWALL, Inc.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|California                                                         |  | 77-0270079                                 
|(State or Other Jurisdiction of
    Incorporation or Organization) |  | (I.R.S. Employer
    Identification Number)

1143 Borregas Avenue, Sunnyvale, California 94089


(Address of
Principal Executive Offices including Zip Code)


Registrants telephone number, including area code:


(408) 745-9600


Securities registered pursuant to Section 12(b) of the
Act:


NONE


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock (no par value)


þ o


o


þ o






DOCUMENTS INCORPORATED BY REFERENCE












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Explanatory Note to Form 10-K Amendment No. 2






---










TABLE OF CONTENTS


|             |  |                                                                                                    |  |      |    | 
|------------ |  | -------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|             |  |                                                                                                    |  | Page |   
|             |  |                                                                                                    |  |      |   
|PART III    
|Item 10.     |  | Directors and Executive Officers of the
    Registrant                                             |  |      | 1  | 
|Item 11.     |  | Executive Compensation                                                                             |  |      | 5  | 
|Item 12.     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters |  |      | 9  | 
|Item 13.     |  | Certain Relationships and Related
    Transactions                                                 |  |      | 12 | 
|Item 14.     |  | Principal Accountant Fees and Services                                                             |  |      | 12 | 
|EXHIBIT 31.1
|EXHIBIT 31.2
|EXHIBIT 32.1





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PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant

Directors of the Registrant




|                         |  |     |    |  |          |                                                                               
|------------------------ |  | --- | -- |  | -------- | ------------------------------------------------------------------------------
|Name                     |  | Age |    |  | Position
|                         |  |     |    |  |         
|Charles D. Kissner(3)    |  |     | 57 |  |          | Chairman of the Board                                                         
|Matthew Medeiros         |  |     | 48 |  |          | President and Chief Executive Officer and Director                            
|Frederick M. Gonzalez    |  |     | 55 |  |          | Vice President, General Counsel and Corporate Secretary                       
|Robert B. Knauff         |  |     | 43 |  |          | Vice President, Finance, Corporate Controller and Chief
    Accounting Officer
|Robert D. Selvi          |  |     | 48 |  |          | Chief Financial Officer                                                       
|Michael M. Stewart       |  |     | 56 |  |          | Vice President, WorldWide Sales                                               
|Charles Berger(1)        |  |     | 51 |  |          | Director                                                                      
|David W. Garrison(1)(2)  |  |     | 49 |  |          | Director                                                                      
|John C. Shoemaker(2)(3)  |  |     | 62 |  |          | Director                                                                      
|Cary H. Thompson(1)      |  |     | 48 |  |          | Director                                                                      
|Edward F. Thompson(1)    |  |     | 66 |  |          | Director                                                                      
|Robert M. Williams(2)(3) |  |     | 50 |  |          | Director                                                                      






|    |                                                              
|--- | -------------------------------------------------------------
|(1) | Member of the Audit Committee.                               
|   
|(2) | Member of the Compensation Committee.                        
|   
|(3) | Member of the Corporate Governance and Nominations Committee.

Directors


Charles Berger


David W. Garrison






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Charles D. Kissner


Matthew Medeiros


John Shoemaker


Cary H. Thompson


Edward F. Thompson


2



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Robert M. Williams


Executive Officers


Frederick M. Gonzalez


Robert B. Knauff


Robert D. Selvi


Michael M. Stewart


Audit Committee and Audit Committee Financial Expert




3



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www.sonicwall.com


Consideration of Shareholder Recommendations and
Nominations








Section 16(a) Beneficial Ownership Reporting
Compliance




Code of Ethics for Senior Executive and Financial Officers
and Code of Conduct


www.sonicwall.com


4



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|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation

Summary Compensation Table




|                            |                                     |                     |      |              |            |  |           |           |  |  |             |        |  |                  |         |           |  |  |         |     | 
|--------------------------- | ----------------------------------- | ------------------- | ---- | ------------ | ---------- |  | --------- | --------- |  |  | ----------- | ------ |  | ---------------- | ------- | --------- |  |  | ------- | --- | 
|                            |                                     |                     |      |              |            |  |           | Long-Term |  |  |            
|                            |                                     |                     |      | Compensation |            |  |          
|                            |                                     | Annual Compensation |      |              | Awards     |  |           |          
|                            |                                     |                     |      |              |            |  |           |          
|                            |                                     |                     |      | Securities   |            |  |          
|                            |                                     |                     |      | Underlying   |            |  | All Other |          
|Name and Principal Position |                                     | Fiscal Year         |      |              | Salary ($) |  |           | Bonus ($) |  |  | Options (#) |        |  | Compensation ($) |        
|                            |                                     |                     |      |              |            |  |           |           |  |  |             |        |  |                  |        
|Matthew Medeiros(1)         |                                     |                     | 2004 |              |            |  | 450,000   |           |  |  | 360,000     |        |  |                  |        |           |  |  |        |    
|                            | President and Chief Executive       |                     |      | 2003         |            |  |           | 347,885   |  |  |             |       |  |                  |         | 2,400,000 |  |  |         |    | 
|                            | Officer                             |                     |      | 2002         |            |  |           |          |  |  |             |       |  |                  |         |          |  |  |         |    | 
|Michael M. Stewart(2)       |                                     |                     | 2004 |              |            |  | 200,000   |           |  |  | 192,499     | (3)    |  |                  | 75,000  |           |  |  |        |    
|                            | Vice President, Worldwide Sales     |                     |      | 2003         |            |  |           | 73,077    |  |  |             | 50,000 |  |                  |         | 300,000   |  |  |         |    | 
|                            |                                     |                     |      | 2002         |            |  |           |          |  |  |             |       |  |                  |         |          |  |  |         |    | 
|Kathleen M. Fisher(4)       |                                     |                     | 2004 |              |            |  | 226,000   |           |  |  | 52,000      |        |  |                  |        |           |  |  | 130,000 | (5)
|                            | Former Chief Financial Officer      |                     |      | 2003         |            |  |           | 113,000   |  |  |             | 15,000 |  |                  |         | 375,000   |  |  |         |    | 
|                            |                                     |                     |      | 2002         |            |  |           |          |  |  |             |       |  |                  |         |          |  |  |         |    | 
|Frederick M. Gonzalez(6)    |                                     |                     | 2004 |              |            |  | 189,807   |           |  |  | 60,480      |        |  |                  | 145,000 |           |  |  |        |    
|                            | Vice President, General Counsel and |                     |      | 2003         |            |  |           |          |  |  |             |       |  |                  |         |          |  |  |         |    | 
|                            | Corporate Secretary                 |                     |      | 2002         |            |  |           |          |  |  |             |       |  |                  |         |          |  |  |         |    | 
|Robert B. Knauff(7)         |                                     |                     | 2004 |              |            |  | 160,000   |           |  |  | 52,000      |        |  |                  | 75,000  |           |  |  |        |    
|                            | Vice President, Finance,            |                     |      | 2003         |            |  |           | 18,462    |  |  |             | 20,000 |  |                  |         | 100,000   |  |  |         |    | 
|                            | Corporate Controller and            |                     |      | 2002         |            |  |           |          |  |  |             |       |  |                  |         |          |  |  |         |    | 
|                            | Chief Accounting Officer            |                     |      |              |            |  |           |           |  |  |             |        |  |                  |         |           |  |  |         |     | 






|    |                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------
|(1) | Commenced employment in March 2003.                                                                                               
|   
|(2) | Commenced employment in August 2003.                                                                                              
|   
|(3) | Represents commission payments.                                                                                                   
|   
|(4) | Ms. Fishers employment with our company as Chief
    Financial Officer commenced in July 2003 and terminated in
    October 2004.
|   
|(5) | Represents severance payment of $130,000.                                                                                         
|   
|(6) | Commenced employment in January 2004.                                                                                             
|   
|(7) | Commenced employment in November 2003.                                                                                            

5



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Options Granted in Last Fiscal Year




|                      |  |                   |        |     |                |  |     |                      |                  |  |            |                  |  |        |            |  |         |  |         |  |  |  |         | 
|--------------------- |  | ----------------- | ------ | --- | -------------- |  | --- | -------------------- | ---------------- |  | ---------- | ---------------- |  | ------ | ---------- |  | ------- |  | ------- |  |  |  | ------- | 
|                      |  |                   |        |     |                |  |     | Potential Realizable |                 
|                      |  | Individual Grants |        |     |                |  |     |                      | Value at Assumed | 
|                      |  |                   |        |     |                |  |     |                      | Annual Rates of  | 
|                      |  | Number of         |        |     | Percent of     |  |     |                      |                  |  |            | Stock Price      | 
|                      |  | Securities        |        |     | Total Options  |  |     |                      |                  |  |            | Appreciation for | 
|                      |  | Underlying        |        |     | Granted to     |  |     |                      |                  |  |            | Option Term(5)   | 
|                      |  | Options           |        |     | Employees in   |  |     | Exercise Price       |                  |  | Expiration |                  |  |        |           
|Name                  |  | Granted (#)       |        |     | Fiscal Year(3) |  |     | ($/Sh)(4)            |                  |  | Date       |                  |  | 5% ($) |            |  | 10% ($) | 
|                      |  |                   |        |     |                |  |     |                      |                  |  |            |                  |  |        |            |  |         | 
|Matthew Medeiros      |  |                   |       |     |                |  |    |                      |                  |  |           |                  |  |        |           |  |         |  |        |  |  |  |        | 
|Michael M. Stewart    |  |                   | 75,000 | (1) |                |  | 2.1 | %                    |                  |  | 5.50       |                  |  |        | 10/11/2014 |  |         |  | 259,419 |  |  |  | 657,419 | 
|Kathleen M. Fisher    |  |                   |       |     |                |  |    |                      |                  |  |           |                  |  |        |           |  |         |  |        |  |  |  |        | 
|Frederick M. Gonzalez |  |                   | 70,000 | (2) |                |  | 1.9 | %                    |                  |  | 8.52       |                  |  |        | 01/26/2014 |  |         |  | 375,073 |  |  |  | 950,508 | 
|Frederick M. Gonzalez |  |                   | 75,000 | (1) |                |  | 2.1 | %                    |                  |  | 5.50       |                  |  |        | 10/11/2014 |  |         |  | 259,419 |  |  |  | 657,419 | 
|Robert B. Knauff      |  |                   | 75,000 | (1) |                |  | 2.1 | %                    |                  |  | 5.50       |                  |  |        | 10/11/2014 |  |         |  | 259,419 |  |  |  | 657,419 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | This option was granted on October 11, 2004 and vests as to
    one-forty-eighth of the shares on November 11, 2004 and
    each one month anniversary thereafter, subject to the
    employees continued employment with our company.                                                                                                                                                                                                                                                                                                                     
|   
|(2) | This option was granted on January 26, 2004 and vests as to
    one-fourth of the shares on January 26, 2005 and as to
    one-forty-eighth of the shares at the end of each month
    thereafter, subject to the employees continued employment
    with our company.                                                                                                                                                                                                                                                                                     
|   
|(3) | In 2004, we granted options to purchase up to an aggregate of
    3,753,070 shares to employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(4) | The exercise price may be paid in cash, in shares of common
    stock valued at fair market value on the exercise date, or
    through a cashless exercise procedure involving a same-day sale
    of the purchased shares.                                                                                                                                                                                                                                                                                                                                 
|   
|(5) | The 5% and 10% assumed annual rates of compounded stock price
    appreciation are mandated by rules of the SEC. There can be no
    assurance provided to any executive officer or any other holder
    of our securities that the actual stock price appreciation over
    the ten-year option term will be at the assumed 5% and 10%
    levels or at any other defined level. Unless the market price of
    our common stock appreciates over the option term, no value will
    be realized from the option grants made to the executive
    officers.

Aggregated Option Exercises and Fiscal Year-End Option
Values




|                      |  |              |        |  |              |                        |                     |             |                      |                        |               |  |  |             |           |  |               |  |           |  |  |  |           | 
|--------------------- |  | ------------ | ------ |  | ------------ | ---------------------- | ------------------- | ----------- | -------------------- | ---------------------- | ------------- |  |  | ----------- | --------- |  | ------------- |  | --------- |  |  |  | --------- | 
|                      |  |              |        |  |              | Number of Securities   |                     |             | Value of Unexercised |                       
|                      |  |              |        |  |              | Underlying Unexercised |                     |             | In-the Money         |                       
|                      |  | Number of    |        |  |              |                        | Options at          |             |                      | Options at             |              
|                      |  | Shares       |        |  |              |                        | Fiscal Year-End (#) |             |                      | Fiscal Year-End ($)(2) |              
|                      |  | Acquired on  |        |  | Value        |                        |                     |             |                      |                        |               | 
|Name                  |  | Exercise (#) |        |  | Realized ($) |                        |                     | Exercisable |                      |                        | Unexercisable |  |  | Exercisable |           |  | Unexercisable | 
|                      |  |              |        |  |              |                        |                     |             |                      |                        |               |  |  |             |           |  |               | 
|Matthew Medeiros      |  |              |       |  |              |                        |                    |             |                      |                        | 1,050,000     |  |  |             | 1,350,000 |  |               |  | 3,087,000 |  |  |  | 5,967,000 | 
|Michael M. Stewart    |  |              |       |  |              |                        |                    |             |                      |                        | 103,125       |  |  |             | 271,875   |  |               |  | 141,563   |  |  |  | 336,938   | 
|Kathleen M. Fisher    |  |              | 92,156 |  |              |                        | 69,804              | (1)         |                      |                        | 25,031        |  |  |             |          |  |               |  | 26,283    |  |  |  |          | 
|Frederick M. Gonzalez |  |              |       |  |              |                        |                    |             |                      |                        | 3,125         |  |  |             | 141,875   |  |               |  | 2,563     |  |  |  | 58,938    | 
|Robert B. Knauff      |  |              |       |  |              |                        |                    |             |                      |                        | 30,208        |  |  |             | 144,792   |  |               |  | 2,563     |  |  |  | 58,938    | 

6



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|    |                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On various dates in 2004, shares were exercised and
    simultaneously sold. The value realized is based on the per
    share sale prices of shares of our common stock, minus the per
    share exercise price, multiplied by the number of shares
    exercised on the respective sale date.
|   
|(2) | The value of underlying securities is based on the
    $6.32 per share closing price of our common stock on
    December 31, 2004 minus the aggregate exercise price.                                                                                                                         

Director Compensation






Employment Contracts and Termination of Employment and Change
in Control Arrangements




7



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8



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Compensation Committee Interlocks and Insider
Participation











|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters





| |   |                                                                                
| | - | -------------------------------------------------------------------------------
| |  | each person who we know beneficially owns more than 5% of our
    common stock;
|
| |  | each of our directors and director nominees;                                   
|
| |  | each of our named executive officers; and                                      
|
| |  | all of our current directors and executive officers as a group.                

9



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|                                                                             |  |              |           |  |               |  |      |  
|---------------------------------------------------------------------------- |  | ------------ | --------- |  | ------------- |  | ---- | -
|                                                                             |  | Number of    |           |  | Percentage of | 
|                                                                             |  | Shares of    |           |  | Shares of     | 
|                                                                             |  | Common Stock |           |  | Common        | 
|                                                                             |  | Beneficially |           |  | Stock         | 
|Name                                                                         |  | Owned(1)     |           |  | Outstanding   | 
|                                                                             |  |              |           |  |               | 
|5% Shareholders:                                                             |  |              |           |  |               |  |      |  
|NWQ Investment Management Company, LLC(2)                                    |  |              | 6,941,265 |  |               |  | 10.9 | %
|FMR Corp.(3)                                                                 |  |              | 5,862,000 |  |               |  | 9.2  | %
|Sudhakar Ravi(4)                                                             |  |              | 5,543,286 |  |               |  | 8.7  | %
|Sreekanth Ravi(5)                                                            |  |              | 5,118,182 |  |               |  | 8.0  | %
|Directors and Executive Officers:                                            |  |              |           |  |               |  |      |  
|Matthew Medeiros(6)                                                          |  |              | 1,300,000 |  |               |  | 2.0  | %
|Robert M. Williams(7)                                                        |  |              | 269,935   |  |               |  | *    |  
|Charles D. Kissner(8)                                                        |  |              | 173,749   |  |               |  | *    |  
|Michael M. Stewart(9)                                                        |  |              | 142,187   |  |               |  | *    |  
|Cary H. Thompson(10)                                                         |  |              | 98,749    |  |               |  | *    |  
|Robert B. Knauff(11)                                                         |  |              | 48,436    |  |               |  | *    |  
|Frederick M. Gonzalez(12)                                                    |  |              | 34,270    |  |               |  | *    |  
|David W. Garrison(13)                                                        |  |              | 26,249    |  |               |  | *    |  
|Edward F. Thompson(14)                                                       |  |              | 23,645    |  |               |  | *    |  
|Charles Berger                                                               |  |              |          |  |               |  |     |  
|Kathleen M. Fisher                                                           |  |              |          |  |               |  |     |  
|Robert D. Selvi                                                              |  |              |          |  |               |  |     |  
|John C. Shoemaker                                                            |  |              |          |  |               |  |     |  
|All current directors and executive officers as a group
    (12 persons)(15) |  |              | 1,921,034 |  |               |  | 3.2  | %






| |   |                         
| | - | ------------------------
| | * | Represents less than 1%.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Percentage of beneficial ownership is based on
    63,955,194 shares of common stock outstanding as of
    March 31, 2005, together with option shares that may be
    exercised within 60 days of March 31, 2005
    (Vested Options). Beneficial ownership is determined
    in accordance with the rules of the SEC and includes voting or
    investment power with respect to the securities. Except as
    indicated by footnote, and subject to applicable community
    property laws, each person identified in the table possesses
    sole voting and investment power with respect to all shares of
    common stock shown held by them. Vested Options are deemed
    outstanding for computing the percentage ownership of the person
    holding the option, but are not deemed outstanding for purposes
    of computing the percentage ownership of any other person.
|   
|(2) | The number of shares beneficially owned is as of March 31,
    2005, pursuant to a Schedule 13G/ A filed by NWQ Investment
    Management Company, LLC with the SEC on April 12, 2005. The
    address of NWQ Investment Management Company, LLC is 2049
    Century Park East,
    4th Floor,
    Los Angeles, CA 90067.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(3) | The number of shares beneficially owned is as of
    December 31, 2004, pursuant to a Schedule 13G/ A filed
    by FMR Corp. with the SEC on February 14, 2005. FMR Corp.
    possesses sole voting power with respect to 59,800 shares
    and sole dispositive power with respect to
    5,862,000 shares. The address of FMR Corp. is 82 Devonshire
    Street, Boston, MA 02109.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(4) | The number of shares beneficially owned is as of
    December 31, 2004, pursuant to a Schedule 13G/ A filed
    by Sudhakar Ravi with the SEC on February 18, 2005.
    Includes 597,500 shares held by Sudhakar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

10



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| |  |                                                                                                                                                    
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------
| |  | and Sumithra Ravi 1999 Trust. The address of Sudhakar Ravi is
    c/o Code Green Networks, Inc., 840 W. California
    Avenue, Sunnyvale, CA 94086.



|    |                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | The number of shares beneficially owned is as of
    December 31, 2004, pursuant to a Schedule 13G/ A filed
    by Sreekanth Ravi with the SEC on February 18, 2005.
    Includes 690,000 shares held by Sreekanth Ravi 1999 Pot
    Trust. The address of Sreekanth Ravi is c/o Code Green
    Networks, Inc., 840 W. California Avenue, Sunnyvale, CA 94086.
|   
|(6) | Includes 1,300,000 Vested Options.                                                                                                                                                                                                                                                                                                                            
|   
|(7) | Includes 57,536 shares held by The Amended and Restated
    Robert Monroe Williams and Margaret Ruth Caldwell Family Trust
    and 73,749 Vested Options.                                                                                                                                                                                                     
|   
|(8) | Represents 173,749 Vested Options.                                                                                                                                                                                                                                                                                                                            
|   
|(9) | Represents 142,187 Vested Options.                                                                                                                                                                                                                                                                                                                            



|     |                                                   
|---- | --------------------------------------------------
|(10) | Represents 98,749 Vested Options.                 
|    
|(11) | Represents 48,436 Vested Options.                 
|    
|(12) | Represents 34,270 Vested Options.                 
|    
|(13) | Represents 26,249 Vested Options.                 
|    
|(14) | Represents 23,645 Vested Options.                 
|    
|(15) | Includes an aggregate of 1,075,725 Vested Options.

Equity Compensation Plan Information




|                                                              |       |                            |            |            |                      |                         |      |                         |  |  |           |           | 
|------------------------------------------------------------- | ----- | -------------------------- | ---------- | ---------- | -------------------- | ----------------------- | ---- | ----------------------- |  |  | --------- | --------- | 
|                                                              |       | (a)                        |            |            | (b)                  |                         |      | (c)                     | 
|                                                              |       |                            |            |            |                      | Number of Securities    |     
|                                                              |       |                            |            |            |                      | Remaining Available for |     
|                                                              |       |                            |            |            |                      | Future Issuance Under   |     
|                                                              |       | Number of Securities to    |            |            | Weighted Average     |                         |      | Equity Compensation     | 
|                                                              |       | be Issued Upon Exercise of |            |            | Exercise Price of    |                         |      | Plans (Excluding        | 
|                                                              |       | Outstanding Options,       |            |            | Outstanding Options, |                         |      | Securities Reflected in | 
|Plan Category                                                 |       | Warrants and Rights        |            |            | Warrants and Rights  |                         |      | Column(a))              | 
|                                                              |       |                            |            |            |                      |                         |      |                         | 
|Equity compensation plans approved by security holders(2)(3)  |       |                            | 13,409,645 |            |                      | $                       | 6.03 |                         |  |  | 3,269,761 | (4)      
|Equity compensation plans not approved by security holders(5) |       |                            | 12,673     |            |                      | $                       | 7.00 |                         |  |  |          |          
|                                                              |       |                            |            |            |                      |                         |      |                         | 
|                                                              | Total |                            |            | 13,422,318 |                      |                         | $    | 6.03                    |  |  |           | 3,269,761 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The table does not include information for equity compensation
    plans assumed by us in mergers and acquisitions. A total of
    132,394 shares of common stock was issuable upon exercise
    of options assumed by us and options granted under plans assumed
    by us, and outstanding as of December 31, 2004, including
    (i) 54,295 shares issuable upon exercise of options
    assumed by us in our merger with Phobos Corporation in November
    2000, (ii) 16,599 shares issuable upon exercise of
    options we assumed in our acquisition of Ignyte Technology, Inc.
    in March 2001, and (iii) 61,500 shares issuable upon
    exercise of options assumed by us in our acquisition of the
    assets and business of RedCreek Communications, Inc. in October
    2001.
|   
|(2) | These plans include (i) our 1998 and 1994 Stock Option
    Plans, and (ii) our 1999 Employee Stock Purchase Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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|    |                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | The number of shares reserved for issuance under our 1998 Stock
    Option Plan is subject to an automatic annual increase on the
    first day of 2001 through 2008 equal to the lesser of,
    (i) 4,000,000 shares; (ii) 4% of our outstanding
    common stock on the last day of the immediately preceding fiscal
    year; or (iii) a lesser number of shares determined by our
    Board of Directors.
|   
|(4) | Includes 1,309,360 shares of our common stock available for
    issuance under our 1999 Employee Stock Purchase Plan as of
    December 31, 2004.                                                                                                                                                                                                                                                            
|   
|(5) | Represents outstanding options that were issued under Individual
    Written Compensation Agreements in connection with the
    recruitment and employment of new employee hires from RedCreek
    Communications. The weighted average exercise price of these
    grants was $7.00.                                                                                                                        

Change-in-Control Arrangements









|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions





| |   |                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | compensation arrangements which are described under the heading
    Employment Contracts and Termination of Employment and
    Change in Control Arrangements above; and
|
| |  | the transactions described below.                                                                                                                                         










|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services

Audit and Non-Audit Fees




|                      |  |      |         |  |      |   |         | 
|--------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                      |  | 2004 |         |  | 2003 |  
|                      |  |      |         |  |      |  
|Audit fees(1)         |  | $    | 900,000 |  |      | $ | 297,000 | 
|Audit-related fees(2) |  | $    |        |  |      | $ | 21,000  | 
|Tax fees(3)           |  | $    | 27,235  |  |      | $ | 159,000 | 
|All other fees        |  | $    |        |  |      | $ |        | 
|                      |  |      |         |  |      |  
|Total                 |  | $    | 927,235 |  |      | $ | 477,000 | 
|                      |  |      |         |  |      |  

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|    |                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents fees for professional services provided in connection
    with the audit of our annual financial statements and review of
    our quarterly financial statements, advice on accounting matters
    that arose during the audit and audit services provided in
    connection with other statutory or regulatory filings.
|   
|(2) | Represents fees for the audit of our 401K Plan.                                                                                                                                                                                                                                                                                    
|   
|(3) | Represents fees for tax consulting and preparation of our tax
    returns. Our company engaged Deloitte & Touche during
    the second quarter of 2004 for Sarbanes-Oxley consulting and
    preparation of tax returns.                                                                                                           



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SIGNATURES


st




| |                
| | ---------------
| | SONICWALL, INC.



| |     |                     
| | --- | --------------------
| | By: | /s/ MATTHEW MEDEIROS



| |                        
| | -----------------------
| |                        
| | Matthew Medeiros,      
| | Chief Executive Officer

POWER OF ATTORNEY






|                                           |  |                                                                                   |  |              |  | 
|------------------------------------------ |  | --------------------------------------------------------------------------------- |  | ------------ |  | 
|Signature                                  |  | Title                                                                             |  | Date        
|                                           |  |                                                                                   |  |             
|                                          
|/s/ MATTHEW MEDEIROSMatthew
    Medeiros   |  | President, Chief Executive Officer and Director (Principal
    Executive Officer) |  | June 1, 2005
|                                          
|/s/ ROBERT SELVIRobert
    Selvi           |  | Chief Financial Officer
    (Principal Financial Officer)                         |  | June 1, 2005
|                                          
|/s/ ROBERT KNAUFFRobert
    Knauff         |  | Chief Accounting Officer
    (Principal Accounting Officer)                       |  | June 1, 2005
|                                          
|/s/ CHARLES KISSNERCharles
    Kissner     |  | Chairman of the Board of Directors                                                |  | June 1, 2005
|                                          
|/s/ Charles W. BergerCharles
    W. Berger |  | Director                                                                          |  | June 1, 2005
|                                          
|/s/ DAVID W. GARRISONDavid
    W. Garrison |  | Director                                                                          |  | June 1, 2005
|                                          
|/s/ JOHN C. SHOEMAKERJohn
    C. Shoemaker |  | Director                                                                          |  | June 1, 2005

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|                                             |  |          |  |              |  | 
|-------------------------------------------- |  | -------- |  | ------------ |  | 
|Signature                                    |  | Title    |  | Date        
|                                             |  |          |  |             
|                                            
|/s/ EDWARD THOMPSONEdward
    Thompson       |  | Director |  | June 1, 2005
|                                            
|/s/ CARY THOMPSONCary
    Thompson           |  | Director |  | June 1, 2005
|                                            
|/s/ ROBERT M. WILLIAMSRobert
    M. Williams |  | Director |  | June 1, 2005

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EXHIBIT INDEX


|       |    |             |  |                                                                                                                                                                                          
|------ | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|       | 31 | .1          |  | Certification of Chief Executive Officer pursuant to Securities
    Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|      
|       | 31 | .2          |  | Certification of Chief Financial Officer pursuant to Securities
    Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|      
|       | 32 | .1          |  | Certification of Chief Executive Officer and Chief Financial
    Officer pursuant to 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.