UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
OPTELECOM, INC.
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(Name of Issuer)
COMMON STOCK, PAR VALUE $.03 PER SHARE
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(Title of Class of Securities)
683 818 20
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(CUSIP Number)
Thomas R. Schmuhl, Esquire
Duane, Morris & Heckscher LLP
One Liberty Place
Philadelphia, Pennsylvania 19103-7396
(215) 979-1272
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
February 22, 1999
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(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 13d-1(b)(3) or (4), check the following box |_|.
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
* 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).
CUSIP No. 683 818 20 Page 1 of 11 Pages
<PAGE>
SCHEDULE 13D
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CUSIP No. 683 818 20 Page 2 of 11 Pages
- ------------------------- --------------------------
- -------------------------------------------------------------------------------
1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| Andrew Sean Brown
|
- -------------------------------------------------------------------------------
|
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
| (See Instructions) (b) |X|
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3 | SEC USE ONLY
|
- --------------------------------------------------------------------------------
4 | SOURCE OF FUNDS (See Instructions)
|
| OO
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5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
| TO ITEMS 2(d) OR 2(e)
| |_|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| United Kingdom
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| 7 | SOLE VOTING POWER
| |
| | 40,668
NUMBER OF SHARES |-----|--------------------------------------
BENEFICIALLY | 8 | SHARED VOTING POWER
OWNED BY EACH | |
REPORTING PERSON | | 0
WITH |-----|--------------------------------------
| 9 | SOLE DISPOSITIVE POWER
| |
| | 40,668
|-----|--------------------------------------
| 10 | SHARED DISPOSITIVE POWER
| |
| | 0
- --------------------------------------------------------------------------------
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 40,668
- --------------------------------------------------------------------------------
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
| SHARES (See Instructions)
| |X|
- --------------------------------------------------------------------------------
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 2.07%
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14 | TYPE OF REPORTING PERSON (See Instructions)
|
| IN
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<PAGE>
SCHEDULE 13D
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CUSIP No. 683 818 20 Page 3 of 11 Pages
- ------------------------- --------------------------
- -------------------------------------------------------------------------------
1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| Darren Neil Brown
|
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|
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
| (See Instructions) (b) |X|
- --------------------------------------------------------------------------------
3 | SEC USE ONLY
|
- --------------------------------------------------------------------------------
4 | SOURCE OF FUNDS (See Instructions)
|
| OO
- --------------------------------------------------------------------------------
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
| TO ITEMS 2(d) OR 2(e)
| |_|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| United Kingdom
- --------------------------------------------------------------------------------
| 7 | SOLE VOTING POWER
| |
| | 40,668
NUMBER OF SHARES |-----|--------------------------------------
BENEFICIALLY | 8 | SHARED VOTING POWER
OWNED BY EACH | |
REPORTING PERSON | | 0
WITH |-----|--------------------------------------
| 9 | SOLE DISPOSITIVE POWER
| |
| | 40,668
|-----|--------------------------------------
| 10 | SHARED DISPOSITIVE POWER
| |
| | 0
- --------------------------------------------------------------------------------
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 40,668
- --------------------------------------------------------------------------------
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
| SHARES (See Instructions)
| |X|
- --------------------------------------------------------------------------------
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 2.07%
- --------------------------------------------------------------------------------
14 | TYPE OF REPORTING PERSON (See Instructions)
|
| IN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
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CUSIP No. 683 818 20 Page 4 of 11 Pages
- ------------------------- --------------------------
- -------------------------------------------------------------------------------
1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| Mark David Brown
|
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|
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
| (See Instructions) (b) |X|
- --------------------------------------------------------------------------------
3 | SEC USE ONLY
|
- --------------------------------------------------------------------------------
4 | SOURCE OF FUNDS (See Instructions)
|
| OO
- --------------------------------------------------------------------------------
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
| TO ITEMS 2(d) OR 2(e)
| |_|
- --------------------------------------------------------------------------------
6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| United Kingdom
- --------------------------------------------------------------------------------
| 7 | SOLE VOTING POWER
| |
| | 40,668
NUMBER OF SHARES |-----|--------------------------------------
BENEFICIALLY | 8 | SHARED VOTING POWER
OWNED BY EACH | |
REPORTING PERSON | | 0
WITH |-----|--------------------------------------
| 9 | SOLE DISPOSITIVE POWER
| |
| | 40,668
|-----|--------------------------------------
| 10 | SHARED DISPOSITIVE POWER
| |
| | 0
- --------------------------------------------------------------------------------
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 40,668
- --------------------------------------------------------------------------------
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
| SHARES (See Instructions)
| |X|
- --------------------------------------------------------------------------------
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 2.07%
- --------------------------------------------------------------------------------
14 | TYPE OF REPORTING PERSON (See Instructions)
|
| IN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
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CUSIP No. 683 818 20 Page 5 of 11 Pages
- ------------------------- --------------------------
- -------------------------------------------------------------------------------
1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| David Arthur Brown
|
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|
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
| (See Instructions) (b) |X|
- --------------------------------------------------------------------------------
3 | SEC USE ONLY
|
- --------------------------------------------------------------------------------
4 | SOURCE OF FUNDS (See Instructions)
|
| OO
- --------------------------------------------------------------------------------
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
| TO ITEMS 2(d) OR 2(e)
| |_|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| United Kingdom
- --------------------------------------------------------------------------------
| 7 | SOLE VOTING POWER
| |
| | 40,668
NUMBER OF SHARES |-----|--------------------------------------
BENEFICIALLY | 8 | SHARED VOTING POWER
OWNED BY EACH | |
REPORTING PERSON | | 0
WITH |-----|--------------------------------------
| 9 | SOLE DISPOSITIVE POWER
| |
| | 40,668
|-----|--------------------------------------
| 10 | SHARED DISPOSITIVE POWER
| |
| | 0
- --------------------------------------------------------------------------------
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 40,668
- --------------------------------------------------------------------------------
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
| SHARES (See Instructions)
| |X|
- --------------------------------------------------------------------------------
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 2.07%
- --------------------------------------------------------------------------------
14 | TYPE OF REPORTING PERSON (See Instructions)
|
| IN
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<PAGE>
SCHEDULE 13D
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CUSIP No. 683 818 20 Page 6 of 11 Pages
- ------------------------- --------------------------
- -------------------------------------------------------------------------------
1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| Adventatum Jersey Limited
|
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|
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
| (See Instructions) (b) |X|
- --------------------------------------------------------------------------------
3 | SEC USE ONLY
|
- --------------------------------------------------------------------------------
4 | SOURCE OF FUNDS (See Instructions)
|
| OO
- --------------------------------------------------------------------------------
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
| TO ITEMS 2(d) OR 2(e)
| |_|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| Jersey
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| 7 | SOLE VOTING POWER
| |
| | 0
NUMBER OF SHARES |-----|--------------------------------------
BENEFICIALLY | 8 | SHARED VOTING POWER
OWNED BY EACH | |
REPORTING PERSON | | 8,580
WITH |-----|--------------------------------------
| 9 | SOLE DISPOSITIVE POWER
| |
| | 0
|-----|--------------------------------------
| 10 | SHARED DISPOSITIVE POWER
| |
| | 8,580
- --------------------------------------------------------------------------------
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 8,580
- --------------------------------------------------------------------------------
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
| SHARES (See Instructions)
| |X|
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13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| .44%
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14 | TYPE OF REPORTING PERSON (See Instructions)
|
| CO
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<PAGE>
SCHEDULE 13D
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CUSIP No. 683 818 20 Page 7 of 11 Pages
- ------------------------- --------------------------
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1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| Modelege Limited
|
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|
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
| (See Instructions) (b) |X|
- --------------------------------------------------------------------------------
3 | SEC USE ONLY
|
- --------------------------------------------------------------------------------
4 | SOURCE OF FUNDS (See Instructions)
|
| OO
- --------------------------------------------------------------------------------
5 | CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
| TO ITEMS 2(d) OR 2(e)
| |_|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| England
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| 7 | SOLE VOTING POWER
| |
| | 0
NUMBER OF SHARES |-----|--------------------------------------
BENEFICIALLY | 8 | SHARED VOTING POWER
OWNED BY EACH | |
REPORTING PERSON | | 8,580
WITH |-----|--------------------------------------
| 9 | SOLE DISPOSITIVE POWER
| |
| | 0
|-----|--------------------------------------
| 10 | SHARED DISPOSITIVE POWER
| |
| | 8,580
- --------------------------------------------------------------------------------
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 8,580
- --------------------------------------------------------------------------------
12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
| SHARES (See Instructions)
| |X|
- --------------------------------------------------------------------------------
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| .44%
- --------------------------------------------------------------------------------
14 | TYPE OF REPORTING PERSON (See Instructions)
|
| CO
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<PAGE>
CUSIP NO. 683 818 20 Page 8 of 11 pages
Item 2. Identity and Background
Item 2 is hereby amended to read in full as follows:
Name, Address, Principal Occupation and Citizenship
---------------------------------------------------
Andrew Sean Brown Mark David Brown
Coombe Folly Sandhill House
The Grove Park Lane Long Lane
Thatcham Hermitage
Berkshire RG18 4NI Newbury
Managing Director of Paragon Berkshire RG18 9XU
Audio Visual Limited ("Paragon") Sales Director of Paragon
United Kingdom United Kingdom
Darren Neil Brown David Arthur Brown
Waverly House Waverly
Long Lane Long Lane
Hermitage Hermitage
Berkshire RG19 9QT Newbury
Operations Director of Paragon Berkshire RG18 9QT
United Kingdom Chairman and Marketing
Director of Paragon
United Kingdom
Adventatum Jersey Limited is a company formed under the laws of Jersey,
with a principal business and office address of Wellington House, Union Street,
St. Helier, Jersey. Its principal business is providing trustee and nominee
services.
Modelege Limited is a company formed under the laws of England, with a
principal business and office address of 64 Queen Street, London, England. Its
principal business is trading and investment.
None of the foregoing persons or entities has, during the past five years,
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction as a result of which he or it was
or is subject to a judgment, decree or final order enjoining future violations
of, or prohibiting or mandating activities subject to, federal or state
securities laws or finding any violation with respect to such laws.
The Company has taken steps to terminate the employment of the four
individuals named above. Such terminations are the subject of a dispute between
the Company and such individuals.
Item 3. Source and Amount of Funds or Other Consideration
Item 3 is hereby amended to read in full as follows:
Andrew Sean Brown, Darren Neil Brown and Adventatum Jersey Limited (the
"Shareholders") were the sole registered shareholders of Paragon Audio Visual
Limited ("Paragon"), a United Kingdom company that acquired an aggregate of
171,252 shares of the Company's Common Stock (the "Shares") on December 12, 1997
in partial consideration for the sale by Paragon to the Company of certain
assets. The Shares were then distributed to the Shareholders by Paragon as a
distribution with respect to their shares of Paragon, for no further
consideration.
Modelege Limited is the beneficial owner of the Shares owned of record by
Adventatum Jersey Limited.
<PAGE>
CUSIP No. 683 818 20 Page 9 of 11 pages
Item 4. Purpose of Transaction
Item 4 is hereby amended to read in full as follows:
The Shareholders acquired the Shares for investment purposes. As of the
date hereof, and except as described below, none of the reporting persons has
any plan or proposal which relates to or would result in: (a) the acquisition by
any person of additional securities of the Company or the disposition of
securities of the Company; (b) an extraordinary corporate transaction, such as a
merger, reorganization or liquidation, involving the Company or any of its
subsidiaries; (c) a sale or transfer of a material amount of assets of the
Company or any of its subsidiaries; (d) any change in the present Board of
Directors or management of the Company, including any plans or proposals to
change the number or term of directors or to fill any existing vacancies of the
Board; (e) any material change in the present capitalization or dividend policy
of the Company; (f) any other material change to the Company's business or
corporate structure; (g) changes in the Company's charter, by-laws or
instruments corresponding thereto or other actions which may impede the
acquisition of control of the Company by any person; (h) causing a class of
securities of the Company to be delisted from a national securities exchange or
to cease to be authorized or quoted in an inter-dealer quotation system of a
registered national securities association; (i) a class of equity securities of
the Company becoming eligible for termination of registration pursuant to
Section 12(g)(4) of the Securities Exchange Act of 1934, as amended; or (j) any
action similar to any of those enumerated above.
Subject to the statements made in paragraph (b) of Item 5 below, the
reporting persons anticipate that, subject to applicable restrictions under
securities laws, they will dispose of some or all of the Shares in a series of
transactions over a period of not less than one year. The Company has agreed to
register one-third of the Shares in a registration statement on Form S-3 and has
granted certain additional "piggyback" registration rights with respect to the
Shares. The Shareholders have agreed, until December 12, 1999, not to offer
publicly or effect any public sale of distribution of the Shares during certain
periods before and after the effective date of any registration statement filed
by the Company with the Securities and Exchange Commission, if requested by the
Company or the managing underwriter(s) of any underwritten public offering. The
Shareholders also have granted the Company a right of first refusal to purchase
any Shares at the closing market price on the date on which a Shareholder gives
notice of a proposed sale or the date on which the Company gives notice of its
intent to exercise its option, whichever is greater.
The Company has also agreed to take such action as is within its control to
nominate David Arthur Brown for election as a director of the Company and for
him to be eligible to serve in such capacity. Pursuant to such agreement, David
Arthur Brown was elected as a Director of the Company by the Board of Directors
on May 4, 1998. His resignation as a Director was delivered to the Company on
February 20, 1999 and was accepted on February 22, 1999. On February 3, 1999,
pursuant to the By-Laws of the Company, he nominated himself as a candidate for
election as a Director at the 1999 Annual Meeting of Stockholders.
On February 3, 1999, Andrew Sean Brown submitted a stockholder proposal
(the "ASB Proposal") to the Company for inclusion in the Company's Proxy
Statement relating to its 1999 Annual Meeting of Stockholders. The ASB Proposal
calls for the adoption of a resolution at the Annual Meeting recommending that
(i) the Company redeem the rights issued pursuant to the Company's Rights
Agreement of June 15, 1998, (ii) no additional rights be issued and (iii) no
amended or other Rights Agreement be adopted unless otherwise recommended by the
holders of a majority of the outstanding shares of Common Stock. The Company has
submitted a request to the SEC that would permit the Company to exclude the ASB
Proposal from the Company's proxy statement for its 1999 Annual Meeting. If that
request is not granted, it is anticipated that the ASB Proposal will be included
in the Company's 1999 Proxy Statement.
<PAGE>
CUSIP No. 683 818 20 Page 10 of 11 pages
Item 5. Interest in Securities of Issuer
Item 5 is hereby amended to read in full as follows:
(a) The aggregate number of shares of Common Stock of the Company and the
percentage of the outstanding Common Stock of the Company beneficially owned as
of the date hereof by each of the persons named in Item 2 hereof is set forth
below.
Number of Shares Percentage of
Name Beneficially Owned Outstanding Common Stock
---- ------------------ ------------------------
Andrew Sean Brown 40,668 2.07%
Darren Neil Brown 40,668 2.07%
Adventatum Jersey Limited 8,580 0.44%
Mark David Brown 40,668 2.07%
David Arthur Brown 40,668 2.07%
Modelege Limited 8,580(1) .44%
- ----------------
(1) These shares are owned by record by Adventatum Jersey Limited.
(b) Except as set forth below, each of Andrew Sean Brown, Mark David
Brown, David Arthur Brown and Darren Neil Brown has the sole right to vote or to
direct the vote, and the sole power to dispose, or to direct the disposition, of
the Shares he owns. Both Adventatum Jersey Limited and Modelege Limited have the
shared right to vote, or to direct the vote, and the shared power to dispose, or
to direct the disposition, of the Shares it owns. Although the reporting persons
may be deemed to constitute a "group" within the meaning of Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended, each reporting person disclaims
the existence of any such group. The reporting persons note that they understand
that a "stop transfer" order has been issued by the Company to the transfer
agent with respect to the shares beneficially owned by them and that such "stop
transfer" order was issued by the Company in connection with the dispute
referred to in Item 2 between it and certain of the reporting persons. The
reporting persons further note that they understand that the Company may seek to
have them return some of the Shares held by them to the Company in connection
with the dispute referred to in Item 2 between it and certain of the reporting
persons.
(c) None of the persons named in paragraph (a) of this Item 5 has affected
any transactions in the Company's Common Stock during the past 60 days. On June
24, 1998, the record ownership of 40,668 shares held of record by Adventatum
Jersey Limited and beneficially owned by Mark David Brown was transferred to
Mark David Brown. On June 24, 1998, the record ownership of 40,668 shares held
of record by Adventatum Jersey Limited and beneficially owned by David Arthur
Brown was transferred to David Arthur Brown.
(d) - (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
Item 6 is hereby amended to read in full as follows:
See the second and third paragraphs of Item 4. Although the reporting
persons do not believe that it is necessarily required for the purposes of this
13D, it is hereby noted that David Arthur Brown is the father of Andrew Sean
Brown, Mark David Brown and Darren Neil Brown.
<PAGE>
CUSIP No. 683 818 20 Page 11 of 11 pages
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief, each of
the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Dated: March 1, 1999
/s/ Andrew Sean Brown
--------------------------------------
Andrew Sean Brown
/s/ Darren Neil Brown
--------------------------------------
Darren Neil Brown
/s/ Mark David Brown
--------------------------------------
Mark David Brown
/s/ David Arthur Brown
--------------------------------------
David Arthur Brown
Adventatum Jersey Limited
By: /s/ Richard John Stobart Presser
--------------------------------------
Name: Richard John Stobart Presser
Title: Director
Modelege Limited
By: /s/ Peter Edward Hawley
--------------------------------------
Name: Peter Edward Hawley
Title: Director
