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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934*
(AMENDMENT NO.1)
Software Spectrum, Inc.
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(Name of Issuer)
Common Stock, $.01 Par Value
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(Title of Class of Securities)
833960107
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(CUSIP Number)
Edward P. Grace, III COPY TO: David C. Chapin, Esq.
SunTrust Center, Suite 1850 Ropes & Gray
200 South Orange Avenue One International Place
Orlando, FL 32801 Boston, MA 02110
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(Name, Address and Telephone Number of
Person Authorized to Receive Notices and Communications)
November 19, 1999
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(Dates of Events which Require 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).
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SCHEDULE 13D
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CUSIP NO. 833960107 PAGE 2 OF 10 PAGES
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Edward P. Grace, III
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
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SEC USE ONLY
3
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SOURCE OF FUNDS
4
PF
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
5 PURSUANT TO ITEMS 2(d) or 2(e) [_]
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
U.S.A.
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SOLE VOTING POWER
7
NUMBER OF 281,757
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
NONE
OWNED BY
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EACH SOLE DISPOSITIVE POWER
9
REPORTING 281,757
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
NONE
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
281,757
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 [_]
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
7.0%
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TYPE OF REPORTING PERSON
14
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
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Item 1. SECURITY ISSUER.
The class of equity securities to which this Statement on Schedule 13D (the
"Statement") relates is the Common Stock, par value $.01 per share (the "Common
Stock"), of Software Spectrum, Inc., Delaware corporation (the "Issuer"). The
principal executive offices of the Issuer are located at 2140 Merritt Drive,
Garland, Texas 75041.
Item 2. IDENTITY AND BACKGROUND.
(a) The person filing this statement is Edward P. Grace, III ("Mr. Grace"
or the "Reporting Person").
(b) Mr. Grace's business address is SunTrust Center, Suite 1850, 200 South
Orange Avenue, Orlando, FL 32801.
(c) The Reporting Person is the President of Phelps Grace International,
Inc., an investment and consulting company located at SunTrust Center, Suite
1850, 200 South Orange Avenue, Orlando, FL 32801, and the Managing Member of
iHatch.com, LLC, an incubator and investor in digital businesses located at
SunTrust Center, Suite 1850, 200 South Orange Avenue, Orlando, FL 32801.
(d) During the last five years, the Reporting Person has not been convicted
in any criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) During the last five years, the Reporting Person has not been a party
to a civil proceeding of a judicial or administrative body of competent
jurisdiction resulting in his being 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.
(f) The Reporting Person is a citizen of the United States.
Page 3 of 10 Pages
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Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Grace Associates used an aggregate of $3,097,500 of its funds to acquire
the shares. Grace Family Partnership used an aggregate of $296,949 of its funds
to acquire the shares. Mr. Grace used an aggregate of $298,114.09 of his funds
to acquire the shares.
Item 4. PURPOSE OF TRANSACTION.
Mr. Grace has acquired the shares of Common Stock with the intention of
acquiring a significant equity interest in the Issuer. Mr. Grace believes that
the current trading prices of the Issuer's Common Stock do not reflect the
intrinsic value of the Issuer, and Mr. Grace has engaged and continues to engage
in discussions with the Issuer regarding the Issuer's business and prospects and
means for the Issuer to increase the value of the Common Stock. Mr. Grace
intends to review on a continuing basis his investment in the Issuer. Currently,
Mr. Grace intends to acquire additional shares of Common Stock if such shares
can be acquired at favorable values. In the future, Mr. Grace may decide to
increase or decrease his investment in the Issuer depending upon the price and
availability of the Issuer's securities, subsequent developments affecting the
Issuer, the Issuer's business and prospects, other investment and business
opportunities available to Mr. Grace, general stock market and economic
conditions and tax conditions.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) Mr. Grace is the beneficial owner of 281,757 or approximately 7.0% of
the 4,045,254 shares of the outstanding Common Stock, based on information
contained in the Issuer's Quarterly Report on Form 10-Q filed for the Quarterly
Period ended July 31, 1999. Of the shares beneficially owned by Mr. Grace, Grace
Associates owns 242,400 shares of Common Stock, Grace Family Partnership owns
23,700 shares of Common Stock, and Mr. Grace owns 15,657 shares of Common Stock.
Mr. Grace controls the Grace Family Partnership and Grace Associates.
(b) As the controlling person of each of Grace Associates and Grace Family
Partnership, Mr. Grace may be deemed to have the sole voting and disposition
power with respect to these shares of Common Stock.
(c) All transactions in the shares of Common Stock that have been effected
by Mr. Grace, Grace Associates and Grace Family Partnership are described in
Schedule A hereto. Such transactions were either effected in the open market or
were block trades.
(d) No other person has the right or the power to direct the receipt of
dividend or the proceeds from the sale of the securities reported herein.
(e) Not applicable.
Page 4 of 10 Pages
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Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
The Reporting Person presently has no contracts, arrangements,
understandings or relationships with any other person with respect to any
securities of the Issuer, including but not limited to the transfer or voting of
any shares of Common Stock, finder's fees, joint ventures, loan or option
arrangements, puts or calls, guarantees of profits, division of profits or loss,
or the giving or withholding of proxies.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Not applicable.
Page 5 of 10 Pages
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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: November 17, 1999
By: /s/ Edward P. Grace, III
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Edward P. Grace, III
Page 6 of 10 Pages
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Schedule A
TRADE DATE SHARES PURCHASED SHARES SOLD NET PRICE PER SHARE
- ------------ ---------------- ----------- -------------------
06/28/1998 2,500 18.550
01/08/1999 3,000 16.142
01/11/1999 5,000 16.300
01/13/1999 900 16.050
01/20/1999 100 16.488
01/20/1999 2,900 16.550
02/03/1999 2,000 14.050
02/03/1999 1,000 14.050
02/04/1999 1,100 13.550
02/04/1999 200 13.863
02/04/1999 100 13.988
02/04/1999 600 14.050
02/04/1999 3,100 14.300
02/04/1999 500 14.250
02/04/1999 500 14.625
02/25/1999 2,100 12.050
03/18/1999 5,000 11.550
03/18/1999 5,000 11.550
03/18/1999 5,000 11.550
03/26/1999 5,000 11.550
03/26/1999 5,000 11.550
03/26/1999 5,000 11.550
03/26/1999 2,000 11.300
03/26/1999 500 11.550
03/26/1999 500 11.425
03/26/1999 5,000 11.550
03/26/1999 2,000 11.550
03/26/1999 2,000 11.675
03/26/1999 1,000 11.625
03/26/1999 500 11.625
03/26/1999 100 11.625
03/26/1999 100 11.625
03/26/1999 300 11.625
03/29/1999 1,000 11.750
03/29/1999 100 11.875
03/29/1999 400 11.750
03/29/1999 100 11.875
03/29/1999 1,000 12.063
Page 7 of 10 Pages
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TRADE DATE SHARES PURCHASED SHARES SOLD NET PRICE PER SHARE
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03/29/1999 2,400 12.125
03/31/1999 1,000 13.438
03/31/1999 100 12.438
03/31/1999 1,000 13.500
03/31/1999 100 12.625
03/31/1999 200 12.625
04/01/1999 500 14.000
04/01/1999 1,000 13.500
04/01/1999 500 14.063
04/01/1999 100 14.063
04/05/1999 300 13.550
04/16/1999 5,000 13.300
04/19/1999 1,600 12.050
04/19/1999 100 12.425
04/19/1999 3,300 12.550
04/19/1999 4,000 12.550
04/20/1999 5,000 11.800
04/23/1999 5,000 12.175
04/23/1999 5,000 12.050
04/26/1999 1,500 12.000
04/27/1999 4,000 12.175
04/29/1999 4,000 12.050
05/03/1999 100 12.238
05/03/1999 100 12.175
05/03/1999 4,300 12.300
05/04/1999 2,600 12.425
05/05/1999 1,000 12.613
05/05/1999 200 12.488
05/11/1999 1,500 12.300
05/11/1999 5,000 11.800
05/11/1999 500 12.063
05/12/1999 5,000 11.925
05/17/1999 1,000 12.613
05/17/1999 4,000 12.675
05/17/1999 2,000 12.738
05/18/1999 1,000 12.675
05/18/1999 3,000 12.550
05/18/1999 1,000 12.675
05/18/1999 5,000 12.550
05/19/1999 5,000 12.300
05/19/1999 1,700 12.300
06/11/1999 1,000 14.750
Page 8 of 10 Pages
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TRADE DATE SHARES PURCHASED SHARES SOLD NET PRICE PER SHARE
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06/11/1999 1,000 14.625
06/11/1999 500 14.625
06/11/1999 100 14.625
06/11/1999 300 14.625
06/11/1999 100 14.625
06/16/1999 1,000 15.750
06/16/1999 250 16.250
06/16/1999 700 16.250
06/16/1999 50 16.250
06/25/1999 500 15.625
06/25/1999 500 15.625
06/28/1999 5,000 16.050
06/30/1999 500 16.375
07/08/1999 500 16.800
07/09/1999 1,100 17.050
07/09/1999 5,000 17.050
07/09/1999 600 16.800
07/09/1999 2,000 17.300
07/09/1999 5,000 17.050
07/12/1999 2,000 17.738
07/14/1999 2,000 18.050
07/14/1999 2,000 18.050
07/14/1999 2,000 18.550
07/15/1999 2,000 18.675
07/15/1999 5,000 18.656
07/15/1999 500 18.625
07/16/1999 500 18.800
07/19/1999 2,000 19.050
07/20/1999 1,000 18.425
07/20/1999 1,000 18.550
07/21/1999 2,000 18.425
07/21/1999 1,000 18.113
07/23/1999 2,000 16.800
07/23/1999 1,000 16.800
07/23/1999 1,000 16.675
07/28/1999 1,000 16.000
08/09/1999 100 17.000
08/10/1999 500 17.375
08/11/1999 200 17.750
08/11/1999 200 17.500
08/12/1999 300 17.750
08/12/1999 117 17.625
Page 9 of 10 Pages
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TRADE DATE SHARES PURCHASED SHARES SOLD NET PRICE PER SHARE
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08/12/1999 83 17.625
08/12/1999 100 18.000
08/12/1999 1,000 17.675
08/12/1999 1,000 17.800
08/13/1999 200 18.000
08/17/1999 200 18.125
09/20/1999 1,000 16.875
09/23/1999 5,000 16.288
09/28/1999 500 15.375
09/28/1999 943 15.063
10/11/1999 1,000 13.550
10/14/1999 1,000 13.925
11/05/1999 3,000 9.550
11/05/1999 3,000 9.675
11/08/1999 10,000 10.050
11/10/1999 5,000 8.925
11/11/1999 5,000 9.050
11/15/1999 15,000 9.613
11/15/1999 3,000 9.300
11/19/1999 10,000 11.063
11/19/1999 5,000 10.750
11/19/1999 5,000 10.750
Page 10 of 10 Pages
