UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
On2.com Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, no par value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
68338A-10-7
- --------------------------------------------------------------------------------
(CUSIP Number)
- --------------------------------------------------------------------------------
Joseph B. Wollard, Esq.
Citigroup Inc.
425 Park Avenue, 3rd Floor
New York, NY 10043
(212) 793-7167
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
June 15 , 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 that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box.
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.240.13d-7 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).
<PAGE>
- ---------------------------- -------------------------
CUSIP No. 68338A-10-7 SCHEDULE 13D Page 1 of 29 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
The Travelers Insurance Company ("TIC")
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Connecticut
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
-----------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
2,445,762**
-----------------------------------------------------
EACH REPORTING PERSON 9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
2,445,762**
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,445,762**
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.8%**
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
**Represents 1,600,000 shares of Common Stock directly beneficially owned by TIC
and 845,762 shares of Common Stock indirectly beneficially owned by TIC through
ownership of 400,000 Preferred Stock Purchase Units ("Company Units") issued by
On2.com Inc. (the "Company"). Each Company Unit consists of one share of no par
value Series A Convertible Preferred Stock ("Series A Preferred") and one
warrant ("Series A Warrant")to purchase 1.114404 shares of Common Stock at an
exercise price of $3.14 per share. Each share of Series A Preferred is
non-voting and may be converted at the Reporting Person's option, at any time,
into one share of the Company's Common Stock.
<PAGE>
- ----------------------------- ------------------------------
CUSIP No. 68338A-10-7 SCHEDULE 13D Page 2 of 29 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
The Travelers Indemnity Company ("Travelers Indemnity")
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Connecticut
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
-----------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
5,381,559**
-----------------------------------------------------
EACH REPORTING PERSON 9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
5,381,559**
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,381,559**
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.3%**
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Represents 3,104,717 shares of Common Stock directly beneficially owned by
Travelers Indemnity and 2,276,842 shares of Common Stock indirectly beneficially
owned by Travelers Indemnity through ownership of warrants ("Warrants") issued
by the Company.
<PAGE>
- ----------------------------- ----------------------------
CUSIP No. 68338A-10-7 SCHEDULE 13D Page 3 of 29 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Travelers Property Casualty Corp. ("TAP")
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
-----------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
5,381,559**
-----------------------------------------------------
EACH REPORTING PERSON 9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
5,381,559**
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,381,559**
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.3%**
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
HC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Represents shares directly beneficially owned by Travelers Indemnity.
<PAGE>
- ------------------------------ ----------------------------
CUSIP No. 68338A-10-7 SCHEDULE 13D Page 4 of 29 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Travelers Insurance Group Inc. ("TIGI")
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
-----------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
7,827,321**
-----------------------------------------------------
EACH REPORTING PERSON 9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,827,321**
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,827,321**
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.1%**
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
HC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Represents shares directly beneficially owned by Travelers Indemnity and TIC.
<PAGE>
- ------------------------------- -------------------------
CUSIP No. 68338A-10-7 SCHEDULE 13D Page 5 of 29 Pages
- --------------------------------------------------------------------------------
1
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PFS Services, Inc. ("PFS")
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Georgia
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
-----------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
7,827,321**
-----------------------------------------------------
EACH REPORTING PERSON 9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,827,321**
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,827,321**
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.1%**
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
HC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Represents shares directly beneficially owned by Travelers Indemnity and TIC.
<PAGE>
- --------------------------- -------------------------
CUSIP No. 68338A-10-7 SCHEDULE 13D Page 6 of 29 Pages
- ------------- ------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Associated Madison Companies, Inc. ("Associated Madison")
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) |_|
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
-----------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
7,827,321**
-----------------------------------------------------
EACH REPORTING PERSON 9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,827,321**
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,827,321**
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.1%**
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
HC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Represents shares directly beneficially owned by Travelers Indemnity and TIC.
<PAGE>
- -------------------------- ------------------------------
CUSIP No. 68338A-10-7 SCHEDULE 13D Page 7 of 29 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Citigroup Inc. ("Citigroup")
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
-----------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
8,038,065**
-----------------------------------------------------
EACH REPORTING PERSON 9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
8,038,065**
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,038,065**
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.8%**
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
HC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Represents shares directly beneficially owned by Travelers Indemnity, TIC and
other subsidiaries of Citigroup Inc.
<PAGE>
SCHEDULE 13D
Item 1. Security and Issuer.
-------------------
The title of the class of equity securities to which this
statement relates is Common Stock, no par value, of On2.com Inc. (the
"Company"). The principal executive offices of the Company are located at
375 Greenwich Street, New York, NY 10013.
Item 2. Identity and Background.
-----------------------
Pursuant to Rule 13d-1(k)(1) of Regulation 13D-G of the Rules
and Regulations under the Securities Exchange Act of 1934, as amended (the
"Act"), the undersigned hereby file this Schedule 13D Statement on behalf
of The Travelers Insurance Company ("TIC"), a Connecticut corporation, The
Travelers Indemnity Company ("Travelers Indemnity"), a Connecticut
corporation, Travelers Property Casualty Corp. ("TAP"), a Delaware
corporation, Travelers Insurance Group Inc. ("TIGI"), a Connecticut
corporation, PFS Services, Inc. ("PFS"), a Georgia corporation, Associated
Madison Companies, Inc. ("Associated Madison"), a Delaware corporation and
Citigroup Inc. ("Citigroup"), a Delaware corporation (each, a "Reporting
Person" and collectively, the "Reporting Persons").
TIC
---
(a) Name: The Travelers Insurance Company
(b) Address of Principal Place of Business and Office:
One Tower Square, Hartford, Connecticut 06183
(c) Principal Business: Insurance
(d) Criminal Proceedings: None
(e) Civil Proceedings: None
(f) Citizenship: Connecticut
Officers and Directors: See Exhibit A attached hereto, and incorporated
herein by reference with respect to each executive officer and director of
TIC.
Travelers Indemnity
-------------------
(a) Name: The Travelers Indemnity Company
(b) Address of Principal Place of Business and Office:
One Tower Square, Hartford, Connecticut 06183
(c) Principal Business: Insurance
(d) Criminal Proceedings: None
(e) Civil Proceedings: None
(f) Citizenship: Connecticut
Page 8
of 29 pages
<PAGE>
Officers and Directors: See Exhibit A attached hereto, and
incorporated herein by reference with respect to each executive
officer and director of Travelers Indemnity.
TAP
- ---
(a) Name: Travelers Property Casualty Corp.
(b) Address of Principal Place of Business and Office:
One Tower Square, Hartford, Connecticut 06183
(c) Principal Business: Holding company for insurance
company subsidiaries.
(d) Criminal Proceedings: None
(e) Civil Proceedings: None
(f) Citizenship: Delaware
TIGI
- ----
(a) Name: Travelers Insurance Group Inc.
(b) Address of Principal Place of Business and Office:
One Tower Square, Hartford, Connecticut 06183
(c) Principal Business: Holding company for insurance
company subsidiaries.
(d) Criminal Proceedings: None
(e) Civil Proceedings: None
(f) Citizenship: Connecticut
PFS
- ---
(a) Name: PFS Services, Inc.
(b) Address of Principal Place of Business and Office:
3120 Breckinridge Boulevard, Duluth, Georgia 30199
(c) Principal Business: Holding company for insurance
company subsidiaries.
(d) Criminal Proceedings: None
(e) Civil Proceedings: None
(f) Citizenship: Georgia
Associated Madison
- ------------------
(a) Name: Associated Madison Companies, Inc.
(b) Address of Principal Place of Business: 153 East 53rd Street,
New York, New York 10043
(c) Principal Business: Holding company for insurance
company subsidiaries
(d) Criminal Proceedings: None
(e) Civil Proceedings: None
(f) Citizenship: Delaware
Page 9
of 29 pages
<PAGE>
Citigroup
- ---------
(a) Name: Citigroup Inc.
(b) Address of Principal Place of Business and Office: 153 East
53rd Street, New York, NY, 10043.
(c) Principal Business: Holding company for banking, securities and
insurance subsidiaries.
(d) Criminal Proceedings: None
(e) Civil Proceedings: None
(f) Citizenship: Delaware
Officers and Directors: See Exhibit A attached hereto, and
incorporated herein by reference with respect to each executive
officer and director of Citigroup Inc.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
All interests, direct and indirect, in the Company's Common Stock reported
in this Schedule 13D were acquired with the working capital of Travelers
Indemnity and TIC.
Travelers Indemnity
-------------------
On May 22, 1997, Travelers Indemnity purchased 1,823,553 shares of voting
common stock (including warrants to acquire an additional 1,823,553 shares
of voting common stock) of The Duck Corporation ("Duck") from Duck at a
price of $2.7419 per share for a total purchase price of $5,000,000. On
June 15, 1999, Applied Capital Acquisition Corp., a wholly-owned
subsidiary of Applied Capital Funding, Inc., merged with and into Duck
("Merger"), which Merger resulted in the formation of the Company. In
connection with the Merger, Travelers Indemnity converted 1,823,553 shares
of Duck's voting common stock into 3,104,717 shares of the Company's
Common Stock. Also in connection with the Merger, Travelers Indemnity
converted 1,823,553 warrants to acquire 1,823,553 shares of Duck's voting
common stock into 2,276,842 warrants ("Warrants") to acquire 2,276,842
shares of the Company's Common Stock.
TIC
---
On June 15, 1999, TIC purchased 400,000 preferred stock purchase units
("Duck Units") from Duck at a price of $7.50 per Duck Unit for a total
purchase price of $3,000,000. Each Duck Unit consisted of one share of
Duck's Series A Convertible Preferred Stock (which TIC could convert into
one share of Duck's voting common stock at any time) and one warrant to
purchase 1.114404 shares of Duck's voting common stock at a an exercise
price of $3.14 per share. Coincident with the Merger, TIC converted the
400,000 Duck Units into 400,000 preferred stock purchase units ("Company
Units") issued by the Company. See Item 5 for a description of the terms
on which TIC may convert the Company Units into Common Stock.
Page 10
of 29 pages
<PAGE>
Prior to the Merger, TIC acquired 1,600,000 shares of Duck's voting common
stock from existing shareholders in privately negotiated transactions.
Coincident with the Merger, each share of Duck's voting common stock
acquired by TIC from such shareholders was converted into one share of the
Company's Common Stock.
Item 4. Purpose of Transaction.
----------------------
Travelers Indemnity and TIC acquired the Common Stock reported in this
Schedule 13D for investment purposes. Depending on market conditions and
other factors (including evaluation of the Company's businesses and
prospects, availability of funds, alternative uses of funds and general
economic conditions), Travelers Indemnity and TIC may from time to time
purchase additional securities of the Company or dispose of all or a
portion of its investment in the Company.
According to the terms of the Agreement and Plan of Merger By and Among
Applied Capital Funding, Inc., Applied Capital Acquisition Corp. and The
Duck Corporation dated as of June 9, 1999 (the "Merger Agreement"),
Travelers Indemnity and TIC have the right to select one director for the
Company's Board of Directors. Jack L. Rivkin, an employee of an affiliate
of Travelers Indemnity and TIC, presently represents Travelers Indemnity
and TIC on the Company's Board of Directors. Mr. Rivkin's term of office
expires at the Company's annual meeting on May 17, 2000, at which time he
may be elected to serve another term as director. Mr. Rivkin disclaims
beneficial ownership of the Common Stock reported in this Schedule 13D,
and the Reporting Persons disclaim beneficial ownership of any of the
Company's securities that may be owned by Mr. Rivkin.
Except as described in this Item 4, none of the Reporting Persons nor, to
the best knowledge of such persons, any of the persons named in Exhibit A
to this Schedule 13D, has formulated any plans or proposals which relate
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 on the Board; (e) any material change in the present
capitalization or dividend policy of the Company; (f) any other material
change in the Company's business or corporate structure; (g) any changes
in the Company's charter or by-laws 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 to be quoted in an inter-dealer
quotation system of a registered national securities association; (i)
causing a class of equity securities of the Company to become eligible for
termination of registration pursuant to Section 12(g)(4) of the Act; or
(j) any action similar to those enumerated above.
Page 11
of 29 pages
<PAGE>
Item 5. Interest in Securities of the Company.
-------------------------------------
The percentages calculated in this Item 5 are based upon 27,902,766 shares
of Common Stock outstanding, including 24,780,162 shares of Common Stock
outstanding as of April 13, 2000 as disclosed in the Company's Schedule
14A filed April 24, 2000 and 3,122,604 shares of Common Stock issuable to
TIC and Travelers Indemnity as described below in this Item 5.
To the best knowledge of the Reporting Persons, and except as described
above in Item 3, none of the Reporting Persons nor, to the best knowledge
of such persons, any person named in Exhibit A of this Schedule 13D, has
effected any transactions in the Company's Common Stock during the period
which commenced sixty (60) days prior to the date of the event which
triggered the filing of this Schedule 13D and ends on the date of the
filing of this Schedule 13D.
TIC
---
As of June 15, 1999 TIC beneficially owned 2,445,762 shares of the
Company's Common Stock, including 1,600,000 shares directly and 845,762
shares indirectly through ownership of 400,000 Company Units. Each Company
Unit consists of one share of no par value Series A Convertible Preferred
Stock ("Series A Preferred") and one warrant ("Series A Warrant") to
purchase 1.114404 shares of the Company's Common Stock at an exercise
price of $3.14 per share. Each share of Series A Preferred is non-voting
and may be converted at the Reporting Person's option, at any time, into
one share of the Company's Common Stock.
To the best knowledge of TIC, none of the persons named in Exhibit A
hereto under TIC owns securities of the Company.
The following information is being provided as of May 15, 2000 with
respect to TIC's direct beneficial ownership of the Company's Common
Stock.
(a) Amount Beneficially Owned: 2,445,762
(b) Percent of Class: 8.8%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct
the vote..........................
(ii) shared power to vote or direct
the vote.......................... 2,445,762
Page 12
of 29 pages
<PAGE>
(iii) sole power to dispose or to direct
the disposition of................... 0
(iv) shared power to dispose or to direct
the disposition of................... 2,445,762
Travelers Indemnity
-------------------
As of June 15, 1999 Travelers Indemnity beneficially owned 5,381,559
shares of the Company's Common stock, including 3,104,717 shares directly
and 2,276,842 shares indirectly through ownership of Warrants issued by
the Company.
To the best knowledge of Travelers Indemnity, none of the persons named in
Exhibit A hereto under Travelers Indemnity owns securities of the Company.
The following information is being provided as of May 15, 2000 with
respect to Travelers Indemnity's beneficial ownership of the Company's
Common Stock.
(a) Amount Beneficially Owned: 5,381,559
(b) Percent of Class: 19.3%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct
the vote............................ 0
(ii) shared power to vote or direct
the vote............................ 5,381,559
(iii) sole power to dispose or to direct
the disposition of.................. 0
(iv) shared power to dispose or to direct
the disposition of.................. 5,381,559
Page 13
of 29 pages
<PAGE>
TAP
---
TAP is the parent company of Travelers Indemnity. To the best knowledge of
TAP, none of its executive officers or directors owns securities of the
Company. The following information is being provided as of May 15, 2000
with respect to TAP's indirect beneficial ownership of the Company's
Common Stock.
(a) Amount Beneficially Owned: 5,381,559
(b) Percent of Class: 19.3%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct
the vote............................ 0
(ii) shared power to vote or direct
the vote............................ 5,381,559
(iii) sole power to dispose or to direct
the disposition of................ 0
(iv) shared power to dispose or to direct
the disposition of................ 5,381,559
TIGI
----
TIGI is the parent company of TIC and TAP. To the best knowledge of TIGI,
none of its executive officers or directors owns securities of the
Company. The following information is being provided as of May 15, 2000
with respect to TIGI's indirect beneficial ownership of the Company's
Common Stock.
(a) Amount Beneficially Owned: 7,827,321
(b) Percent of Class: 28.1%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct
the vote............................ 0
Page 14
of 29 pages
<PAGE>
(ii) shared power to vote or direct
the vote............................ 7,827,321
(iii) sole power to dispose or to direct
the disposition of.................. 0
(iv) shared power to dispose or to direct
the disposition of.................. 7,827,321
PFS
---
PFS is the parent company of TIGI. To the best knowledge of PFS, none of
its executive officers or directors owns securities of the Company. The
following information is being provided as of May 15, 2000 with respect to
PFS's indirect beneficial ownership of the Company's Common Stock.
(a) Amount Beneficially Owned: 7,827,321
(b) Percent of Class: 28.1%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct
the vote........................ 0
(ii) shared power to vote or direct
the vote............................ 7,827,321
(iii) sole power to dispose or to direct
the disposition of.................. 0
(iv) shared power to dispose or to direct
the disposition of.................. 7,827,321
Page 15
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<PAGE>
Associated Madison
Associated Madison is the parent company of PFS. To the best knowledge of
Associated Madison, none of its executive officers or directors owns
securities of the Company. The following information is being provided as
of May 15, 2000 with respect to Associated Madison's indirect beneficial
ownership of the Company's Common Stock.
(a) Amount Beneficially Owned: 7,827,321
(b) Percent of Class: 28.1%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct
the vote........................ 0
(ii) shared power to vote or direct
the vote............................ 7,827,321
(iii) sole power to dispose or to direct
the disposition of.................. 0
(iv) shared power to dispose or to direct
the disposition of.................. 7,827,321
Citigroup
Citigroup is the parent company of Associated Madison. To the best
knowledge of Citigroup, none of the persons named in Exhibit A hereto
under Citigroup owns securities of the Company. The following information
is being provided as of May 15, 2000 with respect to Citigroup's indirect
beneficial ownership of the Company's Common Stock.
(a) Amount Beneficially Owned: 8,038,065
(b) Percent of Class: 28.8%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct
the vote........................ 0
Page 16
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<PAGE>
(ii) shared power to vote or direct
the vote............................ 8,038,065
(iii) sole power to dispose or to direct
the disposition of.................. 0
(iv) shared power to dispose or to direct
the disposition of.................. 8,038,065
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Company.
-------------------------------------
Except as set forth in Items 3, 4, and 5 of this Schedule 13D, to the
best knowledge of the Reporting Persons, no contracts, arrangements,
understandings or relationships (legal or otherwise) exist among the
persons named in Item 2 or between such persons and any other person with
respect to the securities of the Company, including but not limited to
transfer or voting of any such securities, finder's fees, joint ventures,
loan or option arrangements, puts or calls, guarantees of profits,
divisions of profits or loss, or the giving or withholding of proxies.
Item 7. Material to be filed as Exhibits.
--------------------------------
Exhibit Description
------- -----------
A Officers and Directors of The Travelers Insurance
Company, The Travelers Indemnity Company and
Citigroup Inc.
B Agreement and Plan of Merger By and Among Applied
Capital Funding, Inc., Applied Capital Acquisition
Corp. and The Duck Corporation dated as of June 9,
1999 (incorporated as an exhibit hereto by reference
to Exhibit 2.1 on Form 8-K filed by On2.com Inc. with
the Securities and Exchange Commission on June 22,
1999).
C Consent to Joint Filing of Schedule 13D pursuant to
Rule 13d-1(k) of the Act.
Page 17
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<PAGE>
Signature
---------
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: May 17, 2000
The Travelers Indemnity Company
-------------------------------
By: /s/ Paul Eddy
---------------------------
Name: Paul Eddy
Title: Assistant Secretary
The Travelers Insurance Company
-------------------------------
By: /s/ Millie Kim
---------------------------
Name: Millie Kim
Title: Assistant Secretary
Travelers Property Casualty Corp.
---------------------------------
By: /s/ Paul Eddy
---------------------------
Name: Paul Eddy
Title: Assistant Secretary
Page 18
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<PAGE>
Dated: May 17, 2000
Travelers Insurance Group Inc.
------------------------------
By: /s/ Joseph B. Wollard
---------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
PFS Services, Inc.
------------------
By: /s/ Joseph B. Wollard
---------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
Associated Madison Companies, Inc.
----------------------------------
By: /s/ Joseph B. Wollard
---------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
Citigroup Inc.
--------------
By: /s/ Joseph B. Wollard
---------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
Page 19
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<PAGE>
EXHIBIT A
---------
Executive Officers and Directors of The Travelers Insurance Company
-------------------------------------------------------------------
Set forth below are the names, titles, business addresses, principal occupations
and citizenship of the Executive Officers and Directors of The Travelers
Insurance Company.
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
Jay S. Benet Senior Vice President, Chief Financial
Director and Officer, Chief Accounting Officer and
Executive Officer Controller
United States The Travelers Insurance Company
One Tower Square
Hartford, CT 06183
J. Eric Daniels Chairman of the Board, President and
Director and Chief Executive Officer
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
George C. Kokulis Executive Vice President
Director and The Travelers Insurance Company
Executive Officer One Tower Square
United States Hartford, CT 06183
Katherine M. Sullivan Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Marc P. Weill Senior Vice President and Chief Investment
Director and Officer
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Stuart Baritz Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Jay S. Fishman Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Page 19
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<PAGE>
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
Barry Jacobson Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Russell H. Johnson Senior Vice President and Chief Marketing
Executive Officer Officer
United States The Travelers Insurance Company
One Tower Square
Hartford, CT 06183
Marla Berman Lewitus Senior Vice President and General Counsel
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Warren H. May Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Kathleen A. Preston Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Mary Jean Thornton Senior Vice President and Chief Information
Executive Officer Officer
United States The Travelers Insurance Company
One Tower Square
Hartford, CT 06183
David A. Tyson Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
F. Denney Voss Senior Vice President
Executive Officer The Travelers Insurance Company
United States One Tower Square
Hartford, CT 06183
Page 21
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<PAGE>
Executive Officers and Directors of The Travelers Indemnity Company
-------------------------------------------------------------------
Set forth below are the names, titles, business addresses, principal occupations
and citizenship of the Executive Officers and Directors of The Travelers
Indemnity Company.
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
Jay Steven Fishman Chairman, President and Chief Executive
Director and Officer
Executive Officer The Travelers Indemnity Company
United States One Tower Square
Hartford, CT 06183
Charles Joseph Clarke Vice Chairman
Director and The Travelers Indemnity Company
Executive Officer One Tower Square
United States Hartford, CT 06183
Ronald Edward Foley, Jr. Executive Vice President and CEO, Risk
Management
Director and The Travelers Indemnity Company
Executive Officer One Tower Square
United States Hartford, CT 06183
James David Gibbs Executive Vice President and CEO, Claim
Executive Officer The Travelers Indemnity Company
United States One Tower Square
Hartford, CT 06183
William Patrick Hannon Executive Vice President and Chief Financial
Director and Officer
Executive Officer The Travelers Indemnity Company
United States One Tower Square
Hartford, CT 06183
Joseph Patrick Kiernan Executive Vice President and CEO, Bond
Director and The Travelers Indemnity Company
Executive Officer One Tower Square
United States Hartford, CT 06183
James Michael Michener Senior Vice President, General Counsel
Director and and Secretary
Executive Officer The Travelers Indemnity Company
One Tower Square
Hartford, CT 06183
Page 22
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<PAGE>
Executive Officers and Directors of Citigroup Inc.
--------------------------------------------------
Set forth below are the names, titles, business addresses, principal
occupations and citizenship of the Executive Officers and Directors of
Citigroup Inc.
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
C. Michael Armstrong Chairman & Chief Executive Officer
Director AT&T Corporation
United States 295 North Maple Avenue, Room 4353L
Basking Ridge, NJ 07920
Alain J. P. Belda President & Chief Executive Officer
Director Alcoa Inc.
Brazil 201 Isabella Street, Floor 6J12
Pittsburgh, PA 15212-5858
Kenneth J. Bialkin Partner
Director Skadden, Arps, Slate, Meagher & Flom
United States 919 Third Avenue
New York, NY 10022
Kenneth T. Derr Chairman & Chief Executive Officer
Director Chevron Corporation
United States 575 Market Street, 40th fl
San Francisco, CA 94105
John M. Deutch Institute Professor
Director Massachusetts Institute of Technology
United States 77 Massachusetts Avenue, Room 6-208
Cambridge, MA 02139
The Honorable Gerald R. Ford Former President of the United States
Honorary Director 40365 Sand Dune Road
United States Rancho Mirage, CA 92270
Ann Dibble Jordan Consultant
Director 2940 Benton Place, N.W.
United States Washington, DC 20008-2718
Reuben Mark Chairman and Chief Executive Officer
Director Colgate-Palmolive Company
United States 300 Park Avenue
New York, NY 10022-7499
Page 23
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<PAGE>
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
Michael T. Masin Vice Chairman and President - International
Director GTE Corporation
United States 1255 Corporate Drive
Mail Code SVC06C30
Irving, TX 75038
Dudley C. Mecum Managing Director
Director Capricorn Management
United States 30 East Elm Street
Greenwich, CT 06830
Richard D. Parsons President
Director Time Warner Inc.
United States 75 Rockefeller Plaza, 29th fl
New York, NY 10019
Andrall E. Pearson Chairman & Chief Executive Officer
Director TRICON Global Restaurants, Inc.
United States 660 Steamboat Road
Greenwich, CT 06830
Robert E. Rubin Member of the Office of the Chairman
Director and Citigroup Inc.
Executive Officer 153 East 53rd Street, 4th fl
United States New York, NY 10043
Franklin A. Thomas Former President
Director The Ford Foundation
United States 595 Madison Avenue, 33rd fl
New York, NY 10022
Page 24
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<PAGE>
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
Sanford I. Weill Chairman and Co-Chief Executive Officer
Director and Citigroup Inc.
Executive Officer 153 East 53rd Street, 4th fl
United States New York, NY 10043
Edgar S. Woolard, Jr. Former Chairman & Chief Executive Officer
Director E.I. du Pont de Nemours & Company
United States 1007 Market Street
Wilmington, DE 19898
Arthur Zankel General Partner
Director High Rise Partners, LP
United States 535 Madison Avenue
New York, NY 10022
Michael A. Carpenter Co-Chief Executive Officer
Executive Officer Global Corporate and Investment Bank
United States Citigroup Inc.
399 Park Avenue, 2nd fl
New York, NY 10043
Paul J. Collins Vice Chairman
Executive Officer Citigroup Inc.
United States 153 East 53rd St., 4th fl
New York, NY 10043
Michael D'Ambrose Senior Human Resources Officer
Executive Officer Citigroup Inc.
United States 153 East 53rd St., 4th fl
New York, NY 10043
Jay S. Fishman President & CEO
Executive Officer Travelers Property Casualty Corp.
United States One Tower Square, 8GS
Hartford, CT 06183
Edward D. Horowitz Citigroup Inc.
Executive Officer 153 East 53rd St., 4th fl
United States New York, NY 10043
Page 25
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<PAGE>
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
Thomas Wade Jones Co-Chairman & CEO
Executive Officer SSB Asset Management Group
United States 153 East 53rd St., 4th fl
New York, NY 10043
Robert I. Lipp Chairman & CEO
Executive Officer Global Consumer Business
United States Citigroup Inc.
153 East 53rd St., 4th fl
New York, NY 10043
Deryck C. Maughan Vice Chairman
Executive Officer Citigroup Inc.
United Kingdom 153 East 53rd St., 4th fl
New York, NY 10043
Victor J. Menezes Co-Chief Executive Officer
Executive Officer Global Corporate and Investment Bank
India Citigroup Inc.
399 Park Avenue, 2nd fl
New York, NY 10043
Charles O. Prince, III General Counsel/Corporate Secretary
Executive Officer Citigroup Inc.
United States 153 East 53rd St., 4th fl
New York, NY 10043
William R. Rhodes Vice Chairman
Executive Officer Citigroup Inc.
United States 399 Park Avenue, 2nd fl
New York, NY 10043
Petros Sabatacakis Senior Risk Officer
Executive Officer Citigroup Inc.
United States 153 East 53rd Street
New York, NY 10043
Page 26
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<PAGE>
Name, Title and Citizenship Principal Occupation and Business Address
- --------------------------- -----------------------------------------
Todd S. Thomson Chief Financial Officer
Executive Officer Citigroup Inc.
United States 153 East 53rd St., 4th fl
New York, NY 10043
Marc P. Weill Head of Citigroup Investments
Executive Officer Citigroup Inc.
United States 153 East 53rd St., 4th fl
New York, NY 10043
Robert B. Willumstad Chairman
Executive Officer CitiFinancial Credit Company
United States 153 East 53rd St., 5th fl
New York, NY 10043
Page 27
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<PAGE>
EXHIBIT C
---------
Pursuant to Rule 13d-1(k)(1)(iii) of Regulation D of the Rules and
Regulations of the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended, the undersigned agree that the attached
Schedule 13D is, and any future amendments thereto may be, filed on behalf
of each of us.
Dated: May 17, 2000
The Travelers Indemnity Company
-------------------------------
By: /s/ Paul Eddy
---------------------
Name: Paul Eddy
Title: Assistant Secretary
The Travelers Insurance Company
-------------------------------
By: /s/ Millie Kim
---------------------
Name: Millie Kim
Title: Assistant Secretary
Travelers Property Casualty Corp.
---------------------------------
By: /s/ Paul Eddy
---------------------
Name: Paul Eddy
Title: Assistant Secretary
Page 28
of 29 pages
<PAGE>
Dated: May 17, 2000
Travelers Insurance Group Inc.
------------------------------
By: /s/ Joseph B. Wollard
--------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
PFS Services, Inc.
------------------
By: /s/ Joseph B. Wollard
--------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
Associated Madison Companies, Inc.
----------------------------------
By: /s/ Joseph B. Wollard
--------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
Citigroup Inc.
--------------
By: /s/ Joseph B. Wollard
--------------------------
Name: Joseph B. Wollard
Title: Assistant Secretary
Page 29
of 29 pages
