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        STATES</strong></font></div>
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        AND EXCHANGE COMMISSION </strong></font></div>
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        D.C. 20549 </strong></font></div>
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        8-K </strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of</strong></font></div>
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        Securities Exchange Act of 1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
        of Report (date of earliest event reported):&#160;&#160;September 1,
        2005
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 15pt; FONT-FAMILY: Times New Roman"><strong>COSINE
        COMMUNICATIONS, INC. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of Registrant as specified in its charter) </font></div>
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              </td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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              </td>
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              <td valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction of</font></div>
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                  or organization)</font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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                  Number)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
                  Employer</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                  Number)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>560
                  S. Winchester Blvd., Suite 500</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>San
                  Jose, California 95128</strong></font></div>
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              <td colspan="5" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                  of principal executive offices) (Zip Code)</font></div>
              </td>
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            <tr>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
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              <td colspan="5" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(408)&#160;236-7518</strong></font></div>
              </td>
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              <td colspan="5" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
                  telephone number, including area
                  code)</font></div>
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                  name or former address, if changed since last
                  report.)</font></div>
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        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below):</font></div>
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        Written communications
        pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
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        Soliciting material
        pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
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        Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
        Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">
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          <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">&#160;</div>
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          <div id="GLHDR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1.01 Entry into a Material Definitive Agreement</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 1, 2005, Cosine Communications, Inc. (the "Company") entered into
        a
        stockholders rights plan (the "Rights Plan") which provides for a dividend
        distribution of one preferred share purchase right (a "Right") for each
        outstanding share of the Company's common stock, par value $0.0001 (the "Common
        Stock"). The dividend is payable on September 12, 2005 to the Company's
        stockholders of record at the close of business on that date (the "Record
        Date"). The terms of the rights and the rights plan are set forth in a Rights
        Agreement, dated as of September 1, 2005, by and between Cosine Communications,
        Inc. and Mellon Investor Services LLC, as rights agent.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company's Board of Directors adopted the Rights Plan to protect stockholder
        value by protecting the Company's stockholders from coercive takeover practices
        or takeover bids that are inconsistent with their best interests, and by
        protecting the Company's ability to carry forward its net operating losses
        (&#8220;NOLs&#8221;). The Company has experienced substantial operating losses in previous
        years. Under the Internal Revenue Code and rules promulgated by the Internal
        Revenue Service, the Company may &#8220;carry forward&#8221; these losses in certain
        circumstances to offset current and future earnings and thus reduce its federal
        income tax liability, subject to certain requirement is and restrictions.
        The
        Company believes that it will be able to carry forward several million dollars
        of NOLs and that these NOLs constitute a substantial asset to the Company.
        If
        the Company experiences an &#8220;Ownership Change,&#8221; as defined in Section 382 of the
        Internal Revenue Code, its ability to use the NOLs could be substantially
        limited or lost altogether.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        general terms, the Rights Plan imposes a significant penalty upon any person
        or
        group that acquires 5% or more of the Company's outstanding Common Stock
        without
        the prior approval of its Board of Directors. Stockholders that own 5% or
        more
        of the Company's outstanding Common Stock as of the close of business on
        the
        Record Date may acquire up to an additional 1% of the Company's outstanding
        Common Stock without penalty so long as they maintain their ownership above
        the
        5% level (such increase subject to downward adjustment by the Company's Board
        of
        Directors if it determines that such increase will endanger the availability
        of
        the Company's NOLs). In addition, the Company's Board of Directors may exempt
        any person or group that owns 5% or more if the Board of Directors determines
        that the person or group&#8217;s ownership will not endanger the availability of the
        Company's NOLs. A person or group that acquires a percentage of the Company's
        Common Stock in excess of the applicable threshold is called an &#8220;Acquiring
        Person.&#8221; Any rights held by an acquiring person are void and may not be
        exercised.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company's Board of Directors authorized the issuance of one Right per each
        share
        of the Company's Common Stock outstanding on the Record Date. If the Rights
        become exercisable, each Right would allow its holder to purchase from the
        Company one one-hundredth of a share of the Company's Series A Junior
        Participating Preferred Stock, par value $0.0001 (the "Preferred Stock"),
        for a
        purchase price of $3.00. Each fractional share of Preferred Stock would give
        the
        stockholder approximately the same dividend, voting and liquidation rights
        as
        does one share of the Company's Common Stock. Prior to exercise, however,
        a
        Right does not give its holder any dividend, voting or liquidation
        rights.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Rights will not be exercisable until the earlier of: (i) 10 days after a
        public
        announcement by the Company that a person or group has become an Acquiring
        Person; and (ii) 10 business days (or a later date determined by the Company's
        Board or Directors) after a person or group begins a tender or exchange offer
        that, if completed, would result in that person or group becoming an Acquiring
        Person.</font></div>
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        <div id="FTR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">
          <div id="GLFTR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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          <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">&#160;</div>
          <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        date
        that the Rights become exercisable is known as the &#8220;Distribution Date.&#8221; Until
        the Distribution Date, the Company's Common Stock certificates will also
        evidence the Rights and will contain a notation to that effect. Any transfer
        of
        shares of Common Stock prior to the Distribution Date will constitute a transfer
        of the associated Rights. After the Distribution Date, the Rights will separate
        from the Common Stock and be evidenced by Rights certificates, which the
        Company
        will mail to all holders of rights that have not become void.</font></div>
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        the
        Distribution Date, if a person or group already is or becomes an Acquiring
        Person, all holders of Rights, except the Acquiring Person, may exercise
        their
        rights upon payment of the purchase price to purchase shares of the Company's
        Common Stock (or other securities or assets as determined by the Company's
        Board
        of Directors) with a market value of two times the purchase price (a "Flip-In
        Event").</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
        the
        Distribution Date, if a Flip-In Event has already occurred and the Company
        is
        acquired in a merger or similar transaction, all holders of Rights except
        the
        Acquiring Person may exercise their Rights upon payment of the purchase price,
        to purchase shares of the acquiring corporation with a market value of two
        times
        the purchase price of the Rights (a "Flip-Over Event").</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rights
        may be exercised to purchase shares of the Company's Preferred Stock only
        after
        the Distribution Date occurs and prior to the occurrence of a Flip-In Event
        as
        described above. A Distribution Date resulting from the commencement of a
        tender
        offer or exchange offer described in (ii) above could precede the occurrence
        of
        a Flip-In Event, in which case the Rights could be exercised to purchase
        the
        Company's Preferred Stock. A Distribution Date resulting from any occurrence
        described in (i) above would necessarily follow the occurrence of a Flip-In
        Event, in which case the Rights could be exercised to purchase shares of
        Common
        Stock or other securities as described above.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Rights will expire on September 1, 2007 unless earlier redeemed or
        exchanged.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company's Board of Directors may redeem all (but not less the an all) of
        the
        Rights for a redemption price of $0.01 per Right at any time before the later
        of
        the Distribution Date and the date of the first public announcement or
        disclosure by the Company that a person or group has become an Acquiring
        Person.
        Once the Rights are redeemed, the right to exercise Rights will terminate,
        and
        the only right of the holders of Rights will be to receive the redemption
        price.
        The redemption price will be adjusted if the Company declares a stock split
        or
        issues a stock dividend on its Common Stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
        the
        later of the Distribution Date and the date of the first public announcement
        by
        the Company that a person or group has become an Acquiring Person, but before
        an
        Acquiring Person owns 50% or more of the Company's outstanding Common Stock,
        the
        Company's Board of Directors may exchange each Right (other than Rights that
        have become void) for one share of Common Stock or an equivalent
        security.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company's Board of Directors may adjust the purchase price of the Preferred
        Stock, the number of shares of Preferred Shares issuable and the number of
        outstanding Rights to prevent dilution that may occur as a result of certain
        events, including among others, a stock dividend, a stock split or a
        reclassification of the Preferred Stock or Common Stock. No adjustments to
        the
        purchase price of less than 1 % will be made.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Before
        the time the Rights cease to be redeemable, the Company's Board of Directors
        may
        amend or supplement the Rights Plan without the consent of the holders of
        the
        Rights, except that no amendment may decrease the redemption price below
        $0.01
        per right. At any time thereafter, the Company's Board of Directors may amend
        or
        supplement the Rights Plan only to cure an ambiguity, to alter time period
        provisions, to correct inconsistent provisions or to make any additional
        changes
        to the Rights Plan, but only to the extent that those changes do not impair
        or
        adversely affect any Rights holder and do not result in the Rights again
        becoming redeemable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        description of the Rights Plan is qualified in its entirety by reference
        to the
        Rights Plan, a copy of which attached as Exhibit 4.2 to this Current Report
        and
        incorporated herein by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        3.03 Material Modification of Rights to Security Holders</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
        description set forth under "Item 1.01 Entry into a Material Definitive
        Agreement," which is incorporated herein by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.03 Amendments to Articles of Incorporation or Bylaws</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 8, 2005, the Company filed a Certificate of Designation of Series
        A
        Junior Participating Preferred Stock with the Secretary of State of Delaware.
        See description set forth under "Item 1.01 Entry into a Material Definitive
        Agreement" for a more complete description of the rights and preferences
        of the
        Series A Junior Participating Preferred Stock. A copy of the Certificate
        of
        Designation of Series A Junior Participating Preferred Stock is attached
        as
        Exhibit 3.1 to this Current Report and incorporated herein by
        reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01 Other Events</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 8, 2005, the Company issued a press release announcing the adoption
        of
        the Rights Agreement and declaration of a dividend of the Rights. The full
        text
        of the press release is attached hereto as Exhibit&#160;99.1 to this Current
        Report. </font><a name="001"/></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;9.01
        Financial Statements and Exhibits.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(c)&#160;Exhibits.
        </font></div>
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            <tr>
              <td align="left" valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
                  of Designation of Series A Junior Participating Preferred Stock,
                  as filed
                  with the Secretary of State of Delaware on September 8,
                  2005.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Rights Certificate.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rights
                  Agreement, dated as of September 1, 2005, by and between CoSine
                  Communications, Inc. and Mellon Investor Services LLC.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release, dated September 8, 2005, of CoSine Communications,
                  Inc.</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">
        <div id="FTR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">
          <div id="GLFTR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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          <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">&#160;</div>
          <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">
            <hr style="COLOR: black" noshade size="2">
          </div>
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        <div id="HDR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">
          <div id="GLHDR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, as amended, the
        registrant has duly caused this report to be signed on its behalf by the
        undersigned, thereunto duly authorized. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
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            <tr>
              <td align="left" valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  8, 2005</font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
              </td>
              <td align="left" valign="top" width="40%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  Terry Gibson</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Terry
                  Gibson,</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Executive Officer, Chief Financial Officer and Secretary (Principal
                  Executive, Financial and Accounting Officer and Duly Authorized
                  Officer)</font></div>
              </td>
            </tr>

        </table>
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          <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">&#160;</div>
          <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">
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        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
        TO EXHIBITS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="3" valign="bottom" width="67%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>No.</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td valign="bottom" width="59%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
                  of Designation of Series A Junior Participating Preferred Stock,
                  as filed
                  with the Secretary of State of Delaware on September 8,
                  2005</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Rights Certificate</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rights
                  Agreement, dated as of September 1, 2005, by and between CoSine
                  Communications, Inc. and Mellon Investor Services LLC.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release, dated September 8, 2005, of CoSine Communications,
                  Inc.</font></div>
              </td>
            </tr>

        </table>
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{"company-data": {"conformed-name": "COSINE COMMUNICATIONS INC", "cik": "0001060824", "assigned-sic": "3576", "irs-number": "943280301", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-30715", "film-number": "051075718"}, "business-address": {"street1": "1200 BRIDGE PKWAY", "street2": "STE 200", "city": "REDWOOD CITY", "state": "CA", "zip": "94065", "phone": "6506374777"}, "mail-address": {"street1": "1200 BRIDGE PARKWAY", "city": "REDWOOD CITY", "state": "CA", "zip": "94065"}}
Unassociated Document
UNITED
        STATES
SECURITIES
        AND EXCHANGE COMMISSION
Washington,
        D.C. 20549
FORM
        8-K
CURRENT
        REPORT
Pursuant
        to Section 13 or 15(d) of
the
        Securities Exchange Act of 1934
Date
        of Report (date of earliest event reported):  September 1,
        2005
COSINE
        COMMUNICATIONS, INC.
(Exact
        name of Registrant as specified in its charter)
Delaware
000-30715
94-3280301
(State
                  or other jurisdiction of
incorporation
                  or organization)
(Commission
File
                  Number)
(I.R.S.
                  Employer
Identification
                  Number)
560
                  S. Winchester Blvd., Suite 500
San
                  Jose, California 95128
(Address
                  of principal executive offices) (Zip Code)
(408) 236-7518
(Registrant's
                  telephone number, including area
                  code)
(Former
                  name or former address, if changed since last
                  report.)
Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below):
o
Written communications
        pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material
        pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b))
o
Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))
Item
        1.01 Entry into a Material Definitive Agreement
On
        September 1, 2005, Cosine Communications, Inc. (the "Company") entered into
        a
        stockholders rights plan (the "Rights Plan") which provides for a dividend
        distribution of one preferred share purchase right (a "Right") for each
        outstanding share of the Company's common stock, par value $0.0001 (the "Common
        Stock"). The dividend is payable on September 12, 2005 to the Company's
        stockholders of record at the close of business on that date (the "Record
        Date"). The terms of the rights and the rights plan are set forth in a Rights
        Agreement, dated as of September 1, 2005, by and between Cosine Communications,
        Inc. and Mellon Investor Services LLC, as rights agent.
The
        Company's Board of Directors adopted the Rights Plan to protect stockholder
        value by protecting the Company's stockholders from coercive takeover practices
        or takeover bids that are inconsistent with their best interests, and by
        protecting the Company's ability to carry forward its net operating losses
        ("NOLs"). The Company has experienced substantial operating losses in previous
        years. Under the Internal Revenue Code and rules promulgated by the Internal
        Revenue Service, the Company may "carry forward" these losses in certain
        circumstances to offset current and future earnings and thus reduce its federal
        income tax liability, subject to certain requirement is and restrictions.
        The
        Company believes that it will be able to carry forward several million dollars
        of NOLs and that these NOLs constitute a substantial asset to the Company.
        If
        the Company experiences an "Ownership Change," as defined in Section 382 of the
        Internal Revenue Code, its ability to use the NOLs could be substantially
        limited or lost altogether.
In
        general terms, the Rights Plan imposes a significant penalty upon any person
        or
        group that acquires 5% or more of the Company's outstanding Common Stock
        without
        the prior approval of its Board of Directors. Stockholders that own 5% or
        more
        of the Company's outstanding Common Stock as of the close of business on
        the
        Record Date may acquire up to an additional 1% of the Company's outstanding
        Common Stock without penalty so long as they maintain their ownership above
        the
        5% level (such increase subject to downward adjustment by the Company's Board
        of
        Directors if it determines that such increase will endanger the availability
        of
        the Company's NOLs). In addition, the Company's Board of Directors may exempt
        any person or group that owns 5% or more if the Board of Directors determines
        that the person or group's ownership will not endanger the availability of the
        Company's NOLs. A person or group that acquires a percentage of the Company's
        Common Stock in excess of the applicable threshold is called an "Acquiring
        Person." Any rights held by an acquiring person are void and may not be
        exercised.
The
        Company's Board of Directors authorized the issuance of one Right per each
        share
        of the Company's Common Stock outstanding on the Record Date. If the Rights
        become exercisable, each Right would allow its holder to purchase from the
        Company one one-hundredth of a share of the Company's Series A Junior
        Participating Preferred Stock, par value $0.0001 (the "Preferred Stock"),
        for a
        purchase price of $3.00. Each fractional share of Preferred Stock would give
        the
        stockholder approximately the same dividend, voting and liquidation rights
        as
        does one share of the Company's Common Stock. Prior to exercise, however,
        a
        Right does not give its holder any dividend, voting or liquidation
        rights.
The
        Rights will not be exercisable until the earlier of: (i) 10 days after a
        public
        announcement by the Company that a person or group has become an Acquiring
        Person; and (ii) 10 business days (or a later date determined by the Company's
        Board or Directors) after a person or group begins a tender or exchange offer
        that, if completed, would result in that person or group becoming an Acquiring
        Person.
The
        date
        that the Rights become exercisable is known as the "Distribution Date." Until
        the Distribution Date, the Company's Common Stock certificates will also
        evidence the Rights and will contain a notation to that effect. Any transfer
        of
        shares of Common Stock prior to the Distribution Date will constitute a transfer
        of the associated Rights. After the Distribution Date, the Rights will separate
        from the Common Stock and be evidenced by Rights certificates, which the
        Company
        will mail to all holders of rights that have not become void.
After
        the
        Distribution Date, if a person or group already is or becomes an Acquiring
        Person, all holders of Rights, except the Acquiring Person, may exercise
        their
        rights upon payment of the purchase price to purchase shares of the Company's
        Common Stock (or other securities or assets as determined by the Company's
        Board
        of Directors) with a market value of two times the purchase price (a "Flip-In
        Event").
After
        the
        Distribution Date, if a Flip-In Event has already occurred and the Company
        is
        acquired in a merger or similar transaction, all holders of Rights except
        the
        Acquiring Person may exercise their Rights upon payment of the purchase price,
        to purchase shares of the acquiring corporation with a market value of two
        times
        the purchase price of the Rights (a "Flip-Over Event").
Rights
        may be exercised to purchase shares of the Company's Preferred Stock only
        after
        the Distribution Date occurs and prior to the occurrence of a Flip-In Event
        as
        described above. A Distribution Date resulting from the commencement of a
        tender
        offer or exchange offer described in (ii) above could precede the occurrence
        of
        a Flip-In Event, in which case the Rights could be exercised to purchase
        the
        Company's Preferred Stock. A Distribution Date resulting from any occurrence
        described in (i) above would necessarily follow the occurrence of a Flip-In
        Event, in which case the Rights could be exercised to purchase shares of
        Common
        Stock or other securities as described above.
The
        Rights will expire on September 1, 2007 unless earlier redeemed or
        exchanged.
The
        Company's Board of Directors may redeem all (but not less the an all) of
        the
        Rights for a redemption price of $0.01 per Right at any time before the later
        of
        the Distribution Date and the date of the first public announcement or
        disclosure by the Company that a person or group has become an Acquiring
        Person.
        Once the Rights are redeemed, the right to exercise Rights will terminate,
        and
        the only right of the holders of Rights will be to receive the redemption
        price.
        The redemption price will be adjusted if the Company declares a stock split
        or
        issues a stock dividend on its Common Stock.
After
        the
        later of the Distribution Date and the date of the first public announcement
        by
        the Company that a person or group has become an Acquiring Person, but before
        an
        Acquiring Person owns 50% or more of the Company's outstanding Common Stock,
        the
        Company's Board of Directors may exchange each Right (other than Rights that
        have become void) for one share of Common Stock or an equivalent
        security.
The
        Company's Board of Directors may adjust the purchase price of the Preferred
        Stock, the number of shares of Preferred Shares issuable and the number of
        outstanding Rights to prevent dilution that may occur as a result of certain
        events, including among others, a stock dividend, a stock split or a
        reclassification of the Preferred Stock or Common Stock. No adjustments to
        the
        purchase price of less than 1 % will be made.
Before
        the time the Rights cease to be redeemable, the Company's Board of Directors
        may
        amend or supplement the Rights Plan without the consent of the holders of
        the
        Rights, except that no amendment may decrease the redemption price below
        $0.01
        per right. At any time thereafter, the Company's Board of Directors may amend
        or
        supplement the Rights Plan only to cure an ambiguity, to alter time period
        provisions, to correct inconsistent provisions or to make any additional
        changes
        to the Rights Plan, but only to the extent that those changes do not impair
        or
        adversely affect any Rights holder and do not result in the Rights again
        becoming redeemable.
The
        description of the Rights Plan is qualified in its entirety by reference
        to the
        Rights Plan, a copy of which attached as Exhibit 4.2 to this Current Report
        and
        incorporated herein by reference.
Item
        3.03 Material Modification of Rights to Security Holders
See
        description set forth under "Item 1.01 Entry into a Material Definitive
        Agreement," which is incorporated herein by reference.
Item
        5.03 Amendments to Articles of Incorporation or Bylaws
On
        September 8, 2005, the Company filed a Certificate of Designation of Series
        A
        Junior Participating Preferred Stock with the Secretary of State of Delaware.
        See description set forth under "Item 1.01 Entry into a Material Definitive
        Agreement" for a more complete description of the rights and preferences
        of the
        Series A Junior Participating Preferred Stock. A copy of the Certificate
        of
        Designation of Series A Junior Participating Preferred Stock is attached
        as
        Exhibit 3.1 to this Current Report and incorporated herein by
        reference.
Item
        8.01 Other Events
On
        September 8, 2005, the Company issued a press release announcing the adoption
        of
        the Rights Agreement and declaration of a dividend of the Rights. The full
        text
        of the press release is attached hereto as Exhibit 99.1 to this Current
        Report.
Item 9.01
        Financial Statements and Exhibits.
(c) Exhibits.
3.1
Certificate
                  of Designation of Series A Junior Participating Preferred Stock,
                  as filed
                  with the Secretary of State of Delaware on September 8,
                  2005.
4.1
Form
                  of Rights Certificate.
4.2
Rights
                  Agreement, dated as of September 1, 2005, by and between CoSine
                  Communications, Inc. and Mellon Investor Services LLC.
99.1
Press
                  Release, dated September 8, 2005, of CoSine Communications,
                  Inc.
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, as amended, the
        registrant has duly caused this report to be signed on its behalf by the
        undersigned, thereunto duly authorized.
September
                  8, 2005
By:
/s/
                  Terry Gibson
Terry
                  Gibson,
Chief
                  Executive Officer, Chief Financial Officer and Secretary (Principal
                  Executive, Financial and Accounting Officer and Duly Authorized
                  Officer)
INDEX
        TO EXHIBITS
Exhibit
No.
Description
3.1
Certificate
                  of Designation of Series A Junior Participating Preferred Stock,
                  as filed
                  with the Secretary of State of Delaware on September 8,
                  2005
4.1
Form
                  of Rights Certificate
4.2
Rights
                  Agreement, dated as of September 1, 2005, by and between CoSine
                  Communications, Inc. and Mellon Investor Services LLC.
99.1
Press
                  Release, dated September 8, 2005, of CoSine Communications,
                  Inc.