<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )*
Unify Corporation
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.001 Par Value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
904 743 101
- --------------------------------------------------------------------------------
(CUSIP Number)
David J. Schwartz, Esq. 875 Third Ave.
Debevoise & Plimpton New York, NY 10022
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
December 27, 1996
- --------------------------------------------------------------------------------
(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 / /.
Check the following box if a fee is being paid with the statement / /. (A fee
is not required only if the reporting person: (1) has a previous statement on
file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
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).
<PAGE> 2
SCHEDULE 13D
CUSIP NO. 904743 101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Accel Capital L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 356,679
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 0
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
356,679
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
356,679
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
SCHEDULE 13D
CUSIP NO. 904743 101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Accel Associates L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 356,679
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 0
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
356,679
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
356,679
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
SCHEDULE 13D
CUSIP NO. 904743101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Accel Capital (International) L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bermuda
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 237,785
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 0
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
237,785
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
237,785
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.0%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
SCHEDULE 13D
CUSIP NO. 904743101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Accel Associates (International) L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bermuda
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 237,785
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 0
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
237,785
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
237,785
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.0%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
SCHEDULE 13D
CUSIP NO. 904743101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ellmore C. Patterson Partners
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 27,628
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 0
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
27,628
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,628
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
SCHEDULE 13D
CUSIP NO. 904743101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Arthur C. Patterson
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, PF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 238,739
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 598,464
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
238,739
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
598,464
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
837,203
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
SCHEDULE 13D
CUSIP NO. 904743101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Paul H. Klingenstein
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC,PF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 2,678
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 594,464
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
2,678
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
594,464
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
597,142
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 9
SCHEDULE 13D
CUSIP NO. 904743101 PAGE 2 OF 5 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
James R. Swartz
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC,PF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 25,372
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 594,464
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
25,372
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
594,464
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
619,836
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 10
ITEM 1: ISSUER AND SECURITY
(a) Issuer: Unify Corporation ("Unify")
(b) Address of Principal Executive Office: 181 Metro Drive, 3rd Floor
San Jose, CA 95110
(c) Title of Class of Securities: Common Stock (par value $.001 per share)
CUSIP No.: 904743 10 1
ITEM 2: IDENTITY AND BACKGROUND
(a) Filing Persons (the "Purchasers" or "Reporting Persons"):
Entities ("Entities"):
Accel Capital L.P. ("AC")
Accel Associates L.P. ("AA")
Accel Capital (International) L.P. ("ACI")
Accel Associates (International) L.P. ("AAI")
Ellmore C. Patterson Partners ("ECPP")
Individuals ("Individuals"):
Paul H. Klingenstein ("PHK")
Arthur C. Patterson ("ACP")
James R. Swartz ("JRS")
(b) Principal Business/Residence Address:
For AC, AA, PHK, and ACP:
Accel Partners
One Embarcadero Center
Suite 3820
San Francisco, CA 94111
For ACI and AAI:
c/o International Corporate Management of Bermuda Ltd.
Bermuda Commercial Bank Building
44 Church Street / P.O. Box HM 1255
Hamilton, Bermuda HM FX
For ECPP and JRS:
Accel Partners
One Palmer Square
Princeton, NJ 08542
<PAGE> 11
(c) Principal Occupation or Employment/Citizenship/Place of Organization
Entities:
Accel Capital L.P. ("AC") Delaware
Accel Associates L.P. ("AA") Delaware
Accel Capital (International) L.P. ("ACI") Bermuda
Accel Associates (International) L.P. ("AAI") Bermuda
Ellmore C. Patterson Partners ("ECPP") Delaware
Individuals:
Paul H. Klingenstein ("PHK") United States
Arthur C. Patterson ("ACP") United States
James R. Swartz ("JRS") United States
PHK, ACP, and JRS are each a general partner of AA and AAI; AA is the
general partner of AC, and AAI is the general partner of ACI. ACP is
the sole general partner of ECPP.
(d) None of the Entities and Individuals has during the last five years
been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors).
(e) None of the Entities and Individuals, during the last five years, was
a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction which resulted in his being subject to a
judgement, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state
securities laws or a finding of any violation with respect to such
laws.
(f) Each of the Individuals is a citizen of the United States.
ITEM 3: SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On December 27, 1996, ACP purchased 15,000 shares of Common Stock of the Issuer
at an aggregate purchase price of $83,700.00. On December 30, 1996, ACP
purchased 35,000 shares of Common Stock for a total of $194,050.00, and on
December 31, 1996, ACP purchased 15,000 shares at an aggregate purchase price of
$85,575.00. All of the purchases were paid for in cash with personal funds of
ACP.
Previous Acquisitions
On December 8, 1986, each of AC, ACI, ECPP, PHK, ACP, and JRS purchased Common
Stock of the Issuer, pursuant to a Purchase Agreement dated December 8, 1986
among Dean Westbrook and the Purchasers identified therein. AC purchased 70,384
shares of Common for an aggregate purchase price of $137,248.80, ACI purchased
46,923 shares of Common for $91,499.85, ECPP purchased 2,565 shares of Common
for $5,001.75, PHK purchased 641 shares of Common for $1,249.95, ACP purchased
5,128 shares of Common for $9,999.60, and JRS purchased 1,282 shares of Common
for $2,499.90. On July 2, 1987, a 2-for-1 forward stock was effected by the
Issuer.
On December 8, 1986, each of AC, ACI, ECPP, PHK, and JRS purchased Series A
Preferred Stock of the Issuer ("Series A"), pursuant to a Series A Preferred
Stock Purchase Agreement dated December 8, 1986 among the Issuer and the
Purchasers identified therein. AC purchased 200,854 shares of Series A for an
aggregate purchase price of $411,750.70, ACI purchased 133,903 shares of Series
A for $274,501.00, ECPP purchased 21,951 shares of Series A for $44,999.55, PHK
purchased 1,829 shares of Series A for $3,749.45, and JRS purchased 3,659 shares
of Series A for $7,500.95.
Between October 2, 1987 and June 30, 1988, each of AC, ACI, ECPP, PHK, ACP, and
JRS purchased Series B Preferred Stock of the Issuer ("Series B"), pursuant to a
Series B Preferred Stock Purchase Agreement dated October 2, 1987 among the
Issuer and the Purchasers identified therein. AC purchased 549,000 shares of
Series B for an aggregate purchase price of $411,750.00, ACI purchased 366,000
shares of Series B for $274,500.00, ECPP purchased 50,000 shares of Series B for
$37,500.00, PHK purchased 5,000 shares of Series B for $3,750.00, ACP purchased
10,000 shares of Series B for $7,500.00, and JRS purchased 10,000 shares of
Series B for $7,500.00.
<PAGE> 12
On September 30, 1988, each of AC and ACI purchased Series C Preferred Stock of
the Issuer ("Series C"), pursuant to a Series C Preferred Stock Purchase
Agreement dated September 30, 1988 among the Issuer and the Purchasers
identified therein. AC purchased 236,640 shares of Series C for an aggregate
purchase price of $295,800.00, and ACI purchased 157,760 shares of Series C for
$197,200.00,
On March 22, 1991, each of AC, ACI, ECPP, PHK, ACP, and JRS purchased Series D
Preferred Stock of the Issuer ("Series D"), pursuant to a Series D Preferred
Stock Purchase Agreement dated March 22, 1991 among the Issuer and the
Purchasers identified therein. AC purchased 220,707 shares of Series D for an
aggregate purchase price of $275,883.75, ACI purchased 147,139 shares of Series
D for $183,923.75, ECPP purchased 15,369 shares of Series D for $19,211.25, PHK
purchased 1,537 shares of Series D for $1,921.25, ACP purchased 3,074 shares of
Series D for $3,842.50, and JRS purchased 3,074 shares of Series D for
$3,842.50.
On April 2, 1992, each of AC, ACI, ECPP, PHK, ACP, and JRS purchased Series E
Preferred Stock of the Issuer ("Series E"), pursuant to a Series E Preferred
Stock Purchase Agreement dated April 2, 1992 among the Issuer and the Purchasers
identified therein. AC purchased 253,758 shares of Series E for an aggregate
purchase price of $380,637.00, ACI purchased 169,173 shares of Series E for
$253,759.50, ECPP purchased 19,524 shares of Series E for $29,286.00, PHK
purchased 1,918 shares of Series E for $2,877.00, ACP purchased 3,490 shares of
Series E for $5,235.00, and JRS purchased 3,836 shares of Series E for
$5,754.00.
On December 27, 1995, JRS donated all of his shares of Common, Series A, Series
B, Series D, and Series E to The Swartz Foundation Trust ("TSFT"), a private
charitable foundation of which JRS is Trustee.
In connection with a Revolving Credit Agreement dated as of November 29, 1993
("Revolver"), each of AC, ACI, ECPP, PHK, ACP, and JRS received Warrants to
Purchase Common Stock ("Warrants") of the Issuer, as follows: 112,781 for AC,
75,188 for ACI, 8,677 for ECPP, 852 for PHK, 1,551 for ACP, and 1,705 for JRS.
The Warrants were exercised on June 4, 1996 by reducing the principal amount of
the Promissory Notes issued in connection with the Revolver by the following
amounts: AC by $5,638.85, ACI by $3,759.35, ECPP by $433.65, PHK by 42.35, ACP
by $77.35, and JRS by $85.05.
Prior to the Issuer's initial public offering on June 13, 1996 ("IPO"), the
Issuer effected a 1-for-7 reverse stock split of its Common Stock. In
conjunction with the IPO in June 1996, all of the Series A, Series B, Series C,
Series D, and Series E (collectively "Preferred Stock") converted into Common
Stock of the Issuer, and the conversion ratios of each series of Preferred Stock
varied depending on the particular antidilution adjustments. Therefore, after
the exercise of the Warrants, the 1-for-7 reverse split, and the conversion of
the Preferred Stock into Common Stock, the ownership of the Issuer's Common
Stock was as follows: AC owned 356,679 shares of Common Stock, ACI owned 237,785
shares of Common Stock, ECPP owned 27,628 shares of Common Stock, PHK owned
2,678 shares of Common Stock, ACP owned 4,611 shares of Common Stock, JRS owned
243 shares of Common Stock, and TSFT owned 5,129 shares of Common Stock.
In the IPO, ACP purchased directly 44,000 shares of Common Stock at a price of
$12.00 per share, and he indirectly purchased a total of 4,000 shares which are
owned in four equal amounts by ACP's wife and three minor children.
On various dates between August 28, 1996 and September 20, 1996, ACP purchased a
total of 52,500 shares for a total cost of $589,487.50, or an average of $11.23
per share.
On various dates between September 6, 1996 and September 13, 1996, TSFT
purchased a total of 20,000 shares for a total cost of $213,962.50, or an
average of $10.70 per share.
On various dates between December 4, 1996 and December 26, 1996, ACP purchased a
total of 45,000 shares for a total cost of $245,950.00, or an average of $5.47
per share.
All of the above purchases were paid for with cash from working capital for the
Entities and personal funds for the Individuals.
<PAGE> 13
Item 4. Purpose of Transaction
The purchases by certain of the Entities and Individuals of the securities
described herein were made by them in connection with each of their general
investment activities and, in the ordinary course of each of their respective
businesses pursuant to privately negotiated securities purchase agreements and
open-market purchases, as described herein.
Except as described herein, none of the Entities or the Individuals have any
plans or proposals that relate to or would result in any of the actions set
forth in (a) - (j) of the instructions to Item 4.
The Entities and the Individuals reserve their respective rights to acquire
additional shares of Common Stock and to dispose of all of their respective
current holdings of Common Stock, in one or more open-market or privately
negotiated transactions or otherwise, on such terms and at such times as they
respectively consider desirable.
Item 5. Interest in Securities of the Issuer
(a)(1) Aggregate amount Beneficially Owned by each Reporting Person:
See Row 11 of cover page for each Reporting Person.
(2) Percent of Class: See Row 13 of cover page for each Reporting
Person.
(b) Number of shares as to which each Reporting Person has:
(1) Sole power to vote or to direct the vote: See Row 7 of cover
page for each Reporting Person.
(2) Shared power to vote or to direct the vote: See Row 8 of cover
page for each Reporting Person.
(3) Sole power to dispose of or to direct the disposition of: See
Row 9 of cover page for each Reporting Person.
(4) Shared power to dispose of or to direct the disposition of:
See Row 10 of cover page for each Reporting Person
(c) Except as reported herein, none of PHK, ACP, or JRS
beneficially owns any Common Stock or has effected any
transactions in Common Stock during the past sixty days. The
transactions reported herein are described in Item 3.
(d) No persons other than the Entities and Individuals have the
right to receive and no persons other than the Entities and
the Individuals have the power to direct the receipt of
dividends from, or the proceeds from the sale of, the
securities reported herein.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
In addition to the rights described in Item 4, the Entities and Individuals have
certain rights to require the Issuer to register, under the Securities Act of
1933, the Common Stock acquired through the conversion of the Preferred Stock,
pursuant to Section 8 of the Series E Preferred Stock Purchase Agreement dated
as of April 2, 1992 (see Exhibit B). Also, ACP is a director of the Issuer. As
director, he has a total of 14,285 non-statutory stock options which vest
ratably over three years from the issuance date of February 5, 1996 and are
exercisable as vested at a price of $4.20 per share until February 5, 2006.
Item 7. Material to be filed as Exhibits
Exhibit A - Joint Filing Agreement
Exhibit B - Series E Preferred Stock Purchase Agreement dated as of April 2,
1992 (containing Section 8 - Registration Rights) filed by the Issuer as Exhibit
4.2 to Registration Statement No. 333-3834, which Series E Preferred Stock
Purchase Agreement is hereby incorporated by reference.
<PAGE> 14
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: February 14, 1997
Entities:
Accel Capital L.P.
Accel Associates L.P.
Accel Capital (International) L.P.
Accel Associates (International) L.P.
Ellmore C. Patterson Partners
By:/s/ G. Carter Sednaoui
----------------------------------------
G. Carter Sednaoui, Attorney-in-fact
for above-listed entities
Individuals:
Paul H. Klingenstein
Arthur C. Patterson
James R. Swartz
By:/s/ G. Carter Sednaoui
----------------------------------------
G. Carter Sednaoui, Attorney-in-fact
for above-listed entities
<PAGE> 15
EXHIBIT INDEX
Sequentially
Exhibit Document Description Numbered Page
A Agreement of Joint Filing
B Series E Preferred Stock Purchase
Agreement dated as of April 2, 1992
(containing Section 8 - Registration
Rights) filed by the Issuer as Exhibit 4.2
to Registration Statement No. 333-3834,
which Series E Preferred Stock Purchase
Agreement is hereby incorporated by
reference.
<PAGE> 1
EXHIBIT A
Agreement of Joint Filing
Each of the undersigned hereby agrees to the joint filing of the Schedule 13D to
which this Agreement is attached.
Dated: February 14, 1997
Entities:
Accel Capital L.P.
Accel Associates L.P.
Accel Capital (International) L.P.
Accel Associates (International) L.P.
Ellmore C. Patterson Partners
By:/s/ G. Carter Sednaoui
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G. Carter Sednaoui, Attorney-in-fact
for above-listed entities
Individuals:
Paul H. Klingenstein
Arthur C. Patterson
James R. Swartz
By:/s/ G. Carter Sednaoui
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G. Carter Sednaoui, Attorney-in-fact
for above-listed entities
