<PAGE> 1
CUSIP No. 879102101 Page 1 of 10
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Tekgraf, Inc.
(Name of Issuer)
Class A Common Stock, Par Value $.001 Per Share
(Title of Class of Securities)
879102101
(CUSIP Number)
William M. Rychel
980 Corporate Woods Parkway
Vernon Hills, IL 60061
Telephone: (847) 913-5888
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
October 14, 1999
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13b-1(b)(3) or (4), check the following box [_].
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
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CUSIP No. 879102101 Page 2 of 10
SCHEDULE 13D
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Beverly Nerenberg
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [_]
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_]
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
- ----------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY --------------------------------------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 252,898
PERSON WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
252,898
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
252,898
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.5%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
CUSIP No. 879102101 Page 3 of 10
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
A. Lowell Nerenberg
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [_]
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_]
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
- ----------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY --------------------------------------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 252,898
PERSON WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
252,898
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
252,898
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.5%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
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CUSIP No. 879102101 Page 4 of 10
SCHEDULE 13D
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Thomas A. Gust
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [_]
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_]
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
- ----------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 416,841
OWNED BY --------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
416,841
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
416,841
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.7%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
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CUSIP No. 879102101 Page 5 of 10
SCHEDULE 13D
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
William M. Rychel
- ----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [_]
- ----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- ----------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_]
- ----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
- ----------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 402,925
OWNED BY --------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
402,925
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- ----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
402,925
- ----------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.6%
- ----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
CUSIP No. 879102101 Page 6 of 10
ITEM 1. SECURITY AND ISSUER
This statement relates to the Class A Common Stock, par value $.001
(the "Class A Stock") of Tekgraf, Inc. (the "Issuer"), the principal executive
offices of which are located at 645 Hembree Parkway, Suite J, Roswell, Georgia
30076.
ITEM 2. IDENTIFY AND BACKGROUND
This statement is filed by (i) Beverly Nerenberg, who is employed by
BL Associates, an internet-based business selling consumer products over the
internet, located at 17513 Sir Galahad Way, Ashton, MD 20861; (ii) A. Lowell
Nerenberg, who is also employed by BL Associates, located at 17513 Sir Galahad
Way, Ashton, MD 20861; (iii) William M. Rychel, who is the Chief Executive
Officer of Tekgraf, Inc., his office being located at 980 Corporate Woods
Parkway, Vernon Hills, IL 60061; and (iv) Thomas A. Gust, who is employed by GB
marketing, an independent manufacturers representative specializing in computer
products, located at 200 North Fairway Drive, Suite 202, Vernon Hills, IL 60061
(collectively, the "Shareholders").
During the last five years, to the best of their knowledge, none of
the Shareholders have been (i) convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors) or (ii) a party to a civil
proceeding or a judicial or administrative body of competent jurisdiction and
as a result of such proceeding was or is subject to a judgment, decree, or
final order enjoining future violations of, or prohibiting activities subject
to, federal or state securities laws or finding any violation of such laws. All
reporting persons are citizens of the U.S.A.
ITEM 3. SOURCE AND AMOUNT OF FUNDS AND OTHER CONSIDERATION
As noted in Item 4 below, the only reason the Shareholders have
filed this statement is that they have orally agreed to vote their Class A
Stock and Class B Stock to effect an amendment to the articles of incorporation
that would result in the conversion of the Class B Stock into Class A Stock,
and under Rule 13d-5(b)(1) each Shareholder is therefore deemed to have
acquired the beneficial ownership of all the equity securities beneficially
owned by each other Shareholder. Thus, each of the Shareholders is deemed to
have acquired the beneficial ownership of each other's Class A Stock. Because
this deemed acquisition is the only acquisition reported on this statement, no
information is provided as to the source and amount of funds and other
consideration.
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CUSIP No. 879102101 Page 7 of 10
ITEM 4. PURPOSE OF TRANSACTION
The only reason the Shareholders have filed this statement is that
they have orally agreed to act together for the purpose of acquiring additional
Class A Stock, as follows. Each Shareholder owns Class A Stock and Class B
Common Stock, par value $.001 ( "Class B Stock") of the Issuer. Holders of the
Class B Stock have five votes per share as compared to one vote per share for
the holders of Class A Stock. Otherwise, the Class B Stock is identical to the
Class A Stock, and the Class B Stock is convertible into Class A Stock on a
one-to-one basis. Management of the Issuer has proposed that an amendment to
the Issuer's articles of incorporation be submitted to the shareholders that,
if approved, would result in the conversion of all outstanding Class B Stock
into Class A Stock on a one-to-one basis. Each Shareholder currently intends to
vote his or her Class A Stock and Class B Stock in favor of such an amendment
if presented at a shareholders' meeting. Under Rule 13d-5(b)(1), two or more
persons are deemed to have acquired the beneficial ownership of all the equity
securities beneficially owned by each person as of the date of an agreement to
act together for the purpose of acquiring, holding, voting, or disposing of
equity securities of an issuer. Thus, each of the Shareholders is deemed to
have acquired the beneficial ownership of each other's Class A Stock. Each of
the Shareholders intends to hold all of his or her shares of Class A Stock for
investment purposes.
ITEM 5. INTEREST IN THE SECURITIES OF THE ISSUER
(a) As noted in Item 4 above, the only reason the Shareholders
have filed this statement is that they have orally agreed to vote their Class A
Stock and Class B Stock to effect an amendment to the articles of incorporation
that would result in the conversion of the Class B Stock into Class A Stock,
and under Rule 13d-5(b)(1) each Shareholder is therefore deemed to have
acquired the beneficial ownership of all the equity securities beneficially
owned by each other Shareholder. Thus, the aggregate number of shares of Class
A Stock beneficially owned by the each member of the group is 1,072,664,
approximately 26.5% of the Class A Stock.
(b) While the Shareholders are deemed to have beneficial
ownership of each other's shares of Class A Stock under Rule 13d-5(b)(1), each
reporting person individually beneficially owns the following amounts of
shares.
(1) Beverly Nerenberg and A. Lowell Nerenberg have
shared voting and disposition power with respect to
72,432 shares of Class A Stock and 180,466 shares of
Class B Stock. Thus, the Nerenbergs have beneficial
ownership of 252,898 shares of Class A Stock
(includes the right to conversion of 180,466 shares
of Class B Stock), or approximately 7.5% of the
outstanding shares of Class A Stock.
(2) William M. Rychel has sole voting and disposition
power with respect to 117,983 shares of Class A
Stock and 284,942 shares of Class B Stock.
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CUSIP No. 879102101 Page 8 of 10
Thus, Mr. Rychel beneficially owns 402,925 shares of
Class A Stock (includes the right to conversion of
284,942 shares of Class B Stock), or approximately
11.6 % of the outstanding shares of Class A Stock.
(3) Thomas A. Gust has sole voting and disposition power
with respect to 40,216 shares of Class A Stock and
376,625 shares of Class B Stock. Thus, Mr. Gust
beneficially owns 416,841 shares of Class A Stock
(includes the right to conversion of 376,625 shares
of Class B Stock), or approximately 11.7 % of the
outstanding shares of Class A Stock.
Under Rule 13d-4 of the Securities Exchange Act of 1934, each of the
Shareholders expressly declares that the filing of this statement shall not be
construed as an admission that each of the Shareholders, for the purposes of
section 13(d), or 13(g) of the Act, are beneficial owners of each other's Class
A Stock, except that Mr. and Mrs. Nerenberg state that they share beneficial
ownership of the Class A Stock held by each other.
(c) The list below sets forth the transactions by Mr. and Mrs.
Nerenberg in the past 60 days. Upon the sale of Class B Stock, the shares are
automatically converted to Class A Stock. All of such sales were effected by
the Nerenbergs on NASDAQ.
1. 9/23/99 - 2000 shares at 1 3/16
2. 9/24/99 - 2800 shares at 1 3/16
3. 9/27/99 - 2000 shares at 1 3/16
4. 9/28/99 - 5000 shares at 1 3/16
5. 9/29/99 - 1000 shares at 1 3/16
6. 10/01/99 - 2000 shares at 1 3/16
7. 10/06/99 - 3800 shares at 1 1/8
No transactions of Class A Stock were entered into by Mr.
Rychel or Mr. Gust in the past 60 days.
(d) Not applicable.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
The Shareholders have an oral understanding that if the proposal is
presented at a shareholders meeting, they will each vote their shares of Class
A Stock and Class B Stock in favor of an amendment to the articles of
incorporation to convert the Class B Stock to Class A Stock.
<PAGE> 9
CUSIP No. 879102101 Page 9 of 10
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit 1. Copies of written agreement relating to the filing of
joint acquisition statement as required by Rule
13d-1(k).
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this Statement is true, complete and
correct.
Dated: October 14, 1999
BEVERLY NERENBERG:
/S/ Beverly Nerenberg
----------------------------------------
A. LOWELL NERENBERG:
/S/ A. Lowell Nerenberg
----------------------------------------
WILLIAM M. RYCHEL:
/S/ William M. Rychel
----------------------------------------
THOMAS A. GUST:
/S/ Thomas A. Gust
----------------------------------------
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CUSIP No. 879102101 Page 10 of 10
EXHIBIT 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) under the Securities Exchange Act of
1934, as amended, the undersigned hereby agree to the joint filing on behalf of
each of them of a statement on Schedule 13D (including amendments thereto) with
respect to the Class A Common Stock, par value $.001 per share, of Common Stock
of Tekgraf, Inc. and that this Agreement be included as an Exhibit to such
joint filing. This Agreement may be executed in any number of counterparts all
of which taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement this
14th day of October 1999.
BEVERLY NERENBERG:
/S/ Beverly Nerenberg
----------------------------------------
A. LOWELL NERENBERG:
/S/ A. Lowell Nerenberg
----------------------------------------
WILLIAM M. RYCHEL:
/S/ William M. Rychel
----------------------------------------
THOMAS A. GUST:
/S/ Thomas A. Gust
----------------------------------------
