SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. __)(1)
CROSSZ SOFTWARE CORPORATION
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(Name of issuer)
COMMON STOCK
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(Title of class of securities)
227698 10 7
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(CUSIP number)
DAVID J. ADLER, ESQ.
OLSHAN GRUNDMAN FROME & ROSENZWEIG LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
November 25, 1997
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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.
(Continued on following pages)
(Page of 10 Pages)
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(1) 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 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. 227698 10 7 13D Page 2 of 10 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Brentwood Associates VII, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 461,397 shares
OWNED BY
EACH
REPORTING
PERSON WITH
-----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
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9 SOLE DISPOSITIVE POWER
461,397 shares
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10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
461,397 shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 227698 10 7 13D Page 3 of 10 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
John Walecka
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
United States
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 12,500(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
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8 SHARED VOTING POWER
461,397 shares
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9 SOLE DISPOSITIVE POWER
12,500(1) shares
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10 SHARED DISPOSITIVE POWER
461,397 shares
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
473,897(1) shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.2%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Consists of Common Stock issuable upon exercise of currently
exercisable options held by Mr. Walecka.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 4 of 10 Pages
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The following constitutes the Schedule 13D filed by the undersigned
(the "Schedule 13D").
Item 1. SECURITY AND ISSUER.
This Statement relates to Common Stock, par value $.001 per
share ("Common Stock"), of CrossZ Software Corporation (the "Issuer"). On
November 20, 1997, the Issuer offered 2,500,000 shares of Common Stock in an
initial public offering (the "Offering"). The closing of such offering occurred
on November 25, 1997. Immediately prior to such closing, outstanding Series D
Preferred Stock ("Preferred Stock") and the three other classes of Preferred
Stock of the Issuer then outstanding were converted into 1,697,770 shares of
Common Stock. Such amount included Common Stock issuable to the undersigned. The
principal executive offices of the Issuer are located at 60 Charles Lindbergh
Boulevard, Uniondale, New York 11553.
In July 1997, the Company effected a 1-for-4 reverse stock
split of its Common Stock, Preferred Stock and the other three series of
preferred stock then outstanding, and, in October 1997, the Issuer effected a
1-for-2 reverse stock split of its Common Stock, Preferred Stock and the other
three series of preferred stock then outstanding. All information in this
Schedule 13D gives effect to the stock splits.
Item 2. IDENTITY AND BACKGROUND.
1. (a) BRENTWOOD ASSOCIATES VII, L.P., a limited partnership
organized under the laws of the State of Delaware ("Brentwood").
(b) Address: 3000 Sand Hill Road
Building 1, Suite 260
Menlo Park, California 94025
(c) Principal Business: Investments
(d) No.
(e) No.
Brentwood VII Ventures, LP ("Brentwood VII") is the general partner of
Brentwood. The general partners of Brentwood VII include certain other
investors, including John L. Walecka.
2. (a) JOHN L. WALECKA, is a general partner of Brentwood
VII.
(b) Address: 3000 Sand Hill Road
Building 1, Suite 260
Menlo Park, California 94025
(c) Principal Business: Investments
(d) No.
(e) No.
(f) Citizenship: United States
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CUSIP No. 227698 10 7 13D Page 5 of 10 Pages
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Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
On November 20, 1997, Brentwood acquired 100,000 shares of
Common Stock, in the Offering. The aggregate purchase price was $600,000 and
came from the working capital and other funds of Brentwood.
On November 25, 1997, Brentwood received 361,397 shares of
Common Stock as a result of the conversion of all of the Issuer's outstanding
Preferred Stock and all accrued and unpaid dividends thereon. The aggregate
purchase price for the shares of Preferred Stock acquired by Brentwood was
$750,000 and the shares of Preferred Stock were acquired from working capital
and other funds.
In addition to the foregoing conversion, options to purchase
Preferred Stock held by John Walecka were converted into options to purchase
12,500 shares of Common Stock.
Item 4. PURPOSE OF TRANSACTION.
The Reporting Persons purchased the shares of Common Stock for
investment purposes. No Reporting Person has any present plans or proposals
which would relate to or result in any of the matters set forth in subparagraphs
(a) - (j) of Item 4 of Schedule 13D.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) The following table sets forth the aggregate number and
percentage (based on 5,117,008 shares of Common Stock outstanding as of November
25, 1997) of Common Stock beneficially owned by each Reporting Person named in
Item 2 of Schedule 13D.
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CUSIP No. 227698 10 7 13D Page 6 of 10 Pages
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Percentage of
Shares of Common Shares of Common
Stock Stock
Name Beneficially Owned Beneficially Owned
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Brentwood Associates VII, L.P. 461,397 9.0%
John Walecka (1) 473,897 9.2%
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(1) Consists of (i) 461,397 shares of Common Stock owned by Brentwood, to
which Mr. Walecka disclaims beneficial ownership except to the extent
of his equity interest therein and (ii) 12,500 shares of Common Stock
issuable upon exercise of currently exercisable options.
(b) Brentwood has sole power to vote and dispose of 461,397
shares of Common Stock, representing approximately 9.0% of the outstanding
shares of Common Stock.
In addition, Mr. Walecka has sole power to vote and dispose of
12,500 shares of Common Stock upon the exercise of options which represents less
than 1% of the outstanding Common Stock. By virtue of being a general partner of
Brentwood VII, the general partner of Brentwood, Mr. Walecka may be deemed to
have shared power to vote and dispose of 461,397 shares of Common Stock,
representing approximately 9.0% of the outstanding shares of Common Stock.
(c) The following table sets forth a description of all
transactions in shares of Common Stock of the Issuer by the Reporting Persons
identified in Item 2 of this Schedule 13D effected in the last sixty days.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 7 of 10 Pages
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Number of
Purchase/ Shares
Acquisition Purchased/ Purchase
Name of Shareholder Date Acquired Price
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Brentwood Associates VII, 11/20/97 100,000 6.00
L.P.
11/25/97 361,397 Conversion of
Preferred
Stock
(d) No person other than the Reporting Persons is known to
have the right to receive, or the power to direct the receipt of dividends from,
or proceeds from the sale of, such shares of Common Stock.
Brentwood acquired the shares of Common Stock purchased on November 20,
1997 in the Offering.
(e) Not applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS
WITH RESPECT TO SECURITIES OF THE ISSUER.
(a) The Reporting Persons entered into lock-up agreements with
GKN Securities ("GKN") and Barington Capital Group ("Barington, and, together
with GKN, the "Underwriters"), effective as of November 19, 1997. Pursuant to
these agreements, the Reporting Persons shall not sell, assign or transfer their
shares of Common Stock or the Common Stock issuable upon exercise of options or
warrants, as the case may be, without the prior written consent of the
Underwriters for a period of thirteen months commencing as of November 19, 1997.
The Reporting Persons have also agreed to waive demand and piggyback
registration rights that they hold for a period of thirteen months commencing as
of November 19, 1997.
(b) Except for the circumstances discussed or referred to in
paragraph (a) above, there are no contracts, arrangements, understandings, or
relationships with respect to the securities of the Issuer among any of the
persons reporting in this Schedule 13D.
Item 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A. Joint Filing Agreement.
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CUSIP No. 227698 10 7 13D Page 8 of 10 Pages
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SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: December 4, 1997 BRENTWOOD ASSOCIATES VII, L.P.
By: Brentwood VII Ventures, L.P.
General Partner
By: /s/ JOHN L. WALECKA
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John L. Walecka, General Partner
/S/ JOHN L. WALECKA
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John L. Walecka
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CUSIP No. 227698 10 7 13D Page 9 of 10 Pages
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EXHIBIT INDEX
EXHIBIT PAGE
A. Joint Filing Agreement 10
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CUSIP No. 227698 10 7 13D Page 10 of 10 Pages
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EXHIBIT A
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(f)(1)(iii) under the Securities
Exchange Act of 1934, as amended, the persons named below agree to the joint
filing on behalf of each of them of a Statement on Schedule 13D dated November
25, 1997 (including amendments thereto) with respect to the Common Stock of
CrossZ Software Corporation. This Joint Filing Agreement shall be filed as an
Exhibit to such Statement.
Dated: December 4, 1997 BRENTWOOD ASSOCIATES VII, L.P.
By: Brentwood VII Ventures, L.P.
General Partner
By: /s/ JOHN L. WALECKA
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John L. Walecka, General Partner
/S/ JOHN L. WALECKA
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John L. Walecka
