UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No.____________)*
Keynote Systems, Inc.
(Name of Issuer)
Common Stock, $0.001 par value
(Title of Class of Securities)
493308100
(CUSIP Number)
September 24, 1999
Date of Event Which Requires Filing of this Statement
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
|_| Rule 13d-1(b)
|X| Rule 13d-1(c)
|_| Rule 13d-1(d)
*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 the
disclosures provided in a prior cover page.
The information required in 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 1 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners II L.P. (formerly, Applewood Associates, L.P.)
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 1,773,823 shares 7.8%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 0 shares 0%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 1,773,823 shares 7.8%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
0 Shares 0%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,773,823 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
- --------------------------------------------------------------------------------
Page 2 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Applewood Capital Corp.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0 shares 0%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 1,773,823 shares 7.8%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0 shares 0%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
1,773,823 shares 7.8%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,773,823 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
- --------------------------------------------------------------------------------
Page 3 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Rubenstein
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0 shares 0%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 2,286,216 shares 10.0%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0 shares 0%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
2,286,216 shares 10.0%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,286,216 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.0%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
Page 4 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Irwin Lieber
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 512,393 shares 2.2%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 1,773,823 shares 7.8%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 512,393 shares 2.2%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
1,773,823 shares 7.8%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,286,216 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.0%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
Page 5 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Fingerhut
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 22,624 shares 0.1%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 1,773,823 shares 7.8%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 22,624 shares 0.1%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
1,773,823 shares 7.8%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,796,447 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
Page 6 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Seth Lieber
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0 shares 0%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 1,773,823 shares 7.8%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0 shares 0%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
1,773,823 shares 7.8%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,773,823 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
Page 7 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Jonathan Lieber
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0 shares 0%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 1,773,823 shares 7.8%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0 shares 0%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
1,773,823 shares 7.8%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,773,823 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
Page 8 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Partners
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 362,393 shares 1.6%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 150,000 shares 0.7%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 362,393 shares 1.6%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
150,000 shares 0.7%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
512,393 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
- --------------------------------------------------------------------------------
Page 9 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Brookwood Partners, L.P.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 150,000 shares 0.7%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 362,393 shares 1.6%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 150,000 shares 0.7%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
362,393 shares 1.6%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
512,393 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
- --------------------------------------------------------------------------------
Page 10 of 22
<PAGE>
CUSIP No. 493308100
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Marilyn Rubenstein
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0 shares 0%
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 512,393 shares 2.2%
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0 shares 0%
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
512,393 shares 2.2%
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
512,393 shares
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- --------------------------------------------------------------------------------
Page 11 of 22
<PAGE>
Item 1.
(a) Keynote Systems, Inc.
(b) Address of Issuer's Principal Executive Offices
2855 Campus Drive
San Mateo, California 94403
All references to shares of common stock reflect a 1 for 2 reverse
stock split of the common stock which was effected immediately prior
to the initial public offering by the Issuer.
Item 2.
1. (a) Name of Person Filing: Wheatley Partners II, L.P. (formerly,
Applewood Associates, L.P.)
(b) Address of Principal Business Office, or, if none, Residence:
80 Cuttermill Road
Great Neck, New York 11021
(c) Citizenship: Not applicable.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share.
(e) CUSIP Number: 493308100
2. (a) Name of Person Filing: Applewood Capital Corp.
(b) Address of Principal Business Office, or, if none, Residence:
68 Wheatley Road
Brookville, New York 11545
(c) Citizenship: Not applicable.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share.
(e) CUSIP Number: 493308100
3. (a) Name of Person Filing: Barry Rubenstein
(b) Address of Principal Business Office, or, if none, Residence:
68 Wheatley Road
Brookville, New York 11545
(c) Citizenship: United States.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share.
(e) CUSIP Number: 493308100
Page 12 of 22
<PAGE>
4. (a) Name of Person Filing: Irwin Lieber
(b) Address of Principal Business Office, or, if none, Residence:
767 Fifth Avenue
New York, New York 10153
(c) Citizenship: United States.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share.
(e) CUSIP Number: 493308100
5. (a) Name of Person Filing: Barry Fingerhut
(b) Address of Principal Business Office, or, if none, Residence:
767 Fifth Avenue
New York, New York 10153
(c) Citizenship: United States.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share.
(e) CUSIP Number: 493308100
6. (a) Name of Person Filing: Seth Lieber
(b) Address of Principal Business Office, or, if none, Residence:
767 Fifth Avenue
New York, New York 10153
(c) Citizenship: United States.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share.
(e) CUSIP Number: 493308100
7. (a) Name of Person Filing: Jonathan Lieber
(b) Address of Principal Business Office, or, if none, Residence:
767 Fifth Avenue
New York, New York 10153
(c) Citizenship: United States.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share.
(e) CUSIP Number: 493308100
8. (a) Name of Person Filing: Woodland Partners
(b) Address of Principal Business Office, or, if none, Residence:
68 Wheatley Road
Brookville, New York 11545
(c) Citizenship: Not applicable.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share
(e) CUSIP Number: 493308100
Page 13 of 22
<PAGE>
9. (a) Name of Person Filing: Brookwood Partners, L.P.
(b) Address of Principal Business Office, or, if none, Residence:
68 Wheatley Road
Brookville, New York 11545
(c) Citizenship: Not applicable.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share
(e) CUSIP Number: 493308100
10. (a) Name of Person Filing: Marilyn Rubenstein
(b) Address of Principal Business Office, or, if none, Residence:
68 Wheatley Road
Brookville, New York 11545
(c) Citizenship: United States.
(d) Title of Class of Securities:
Common Stock, $0.001 par value per share
(e) CUSIP Number: 493308100
Item 3. If this statement is filed pursuant to ss.240.13d-1(b) or 240.13d-2(b)
or (c), check whether the person is a:
(a) |_| Broker or dealer registered under section 15 of the Act (15
U.S.C.78o)
(b) |_| Bank as defined in section 3(a)(6) of the Act (15 U.S.C.
78c).
(c) |_| Insurance company as defined in section 3(a)(19) of the Act
(15 U.S.C. 78c).
(d) |_| Investment company as defined in section 3(a)(19) of the Act
(15 U.S.C. 78c).
(e) |_| An investment adviser in accordance with (pounds
sterling)240.13d-1(b)(1)(ii)(E);
(f) |_| An employee benefit plan or endowment fund in accordance with
(pounds sterling)240.13d-1(b)(1)(ii)(F);
(g) |_| A parent holding company or control person in accordance with
(pounds sterling)240.13d-1(b)(1)(ii)(G);
(h) |_| A savings associations as defined in Section 3(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1813);
(i) |_| A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3);
(j) |_| Group, in accordance with ss.240.13d-1(b)(1)(ii)(J).
Page 14 of 22
<PAGE>
Item 4. Ownership.
1. Wheatley Partners II, L.P. ("Wheatley II"):
(a) Amount Beneficially Owned: 1,773,823(1,2) shares.
(b) Percent of Class: 7.8%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 1,773,823(1,2) shares.
(ii) shared power to vote or direct the vote: 0 shares.
(iii)sole power to dispose or direct the disposition of:
1,773,823(1,2) shares.
(iv) shared power to dispose or direct the disposition of: 0
shares.
2. Applewood Capital Corp.:
(a) Amount Beneficially Owned: 1,773,823(1,2) shares. Reporting person
is a general partner of Wheatley II.
(b) Percent of Class: 7.8%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 0 shares.
(ii) shared power to vote or direct the vote: 1,773,823(1,2)
shares.
(iii)sole power to dispose or direct the disposition of: 0
shares.
(iv) shared power to dispose or direct the disposition of:
1,773,823(1,2) shares.
3. Barry Rubenstein:
(a) Amount Beneficially Owned: 2,286,216(1,2,3,4) shares. Reporting
person is a general partner of Wheatley II, an officer and a
director of Applewood Capital Corp., and a general partner of
Woodland Partners and Brookwood Partners, L.P. Mr. Rubenstein is
the husband of Marilyn Rubenstein.
(b) Percent of Class: 10.0%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 0 shares.
(ii) shared power to vote or direct the vote: 2,286,216(1,2,3,4)
shares.
(iii)sole power to dispose or direct the disposition of: 0
shares.
(iv) shared power to dispose or direct the disposition of:
2,286,216(1,2,3,4) shares.
- --------
(1) Includes 1,773,823 shares of Common Stock owned by Wheatley Partners II,
L.P. received upon the automatic conversion of Series A, Series B and
Series C Preferred Stock and upon the exercise of Convertible Common Stock
Warrants.
(2) The reporting person disclaims beneficial ownership of these securities
except to the extent of his/her/its equity interest therein.
(3) Includes 362,393 shares of Common Stock owned by Woodland Partners received
upon the automatic conversion of Series A, Series B and Series D Preferred
Stock and the exercise of Convertible Common Stock Warrants.
(4) Includes 150,000 shares of Common Stock owned by Brookwood Partners, L.P.
received upon the automatic conversion of Series A Preferred Stock.
Page 15 of 22
<PAGE>
4. Irwin Lieber:
(a) Amount Beneficially Owned: 2,286,216(1,2,5) shares. Reporting
person is a general partner of Wheatley II, and an officer and a
director of Applewood Capital Corp. Irwin Lieber is the father of
Seth Lieber and Jonathan Lieber.
(b) Percent of Class: 10.0%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 512,393(5) shares.
(ii) shared power to vote or direct the vote: 1,773,823(1,2)
shares.
(iii)sole power to dispose or direct the disposition of:
512,393(5) shares.
(iv) shared power to dispose or direct the disposition
of:1,773,823(1,2) shares.
5. Barry Fingerhut:
(a) Amount Beneficially Owned: 1,796,447(1,2,6) shares. Reporting
person is a general partner of Wheatley II, and an officer and a
director of Applewood Capital Corp.
(b) Percent of Class: 7.9%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 22,624(6) shares.
(ii) shared power to vote or direct the vote: 1,773,823(1,2)
shares.
(iii)sole power to dispose or direct the disposition of: 22,624
(6) shares.
(iv) shared power to dispose or direct the disposition of:
1,773,823(1,2) shares.
6. Seth Lieber:
(a) Amount Beneficially Owned: 1,773,823(1,2) shares. Reporting person
is a general partner of Wheatley II, and an officer of Applewood
Capital Corp. Seth Lieber is the son of Irwin Lieber and the
brother of Jonathan Lieber.
(b) Percent of Class: 7.8%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 0 shares.
(ii) shared power to vote or direct the vote: 1,773,823(1,2)
shares.
(iii)sole power to dispose or direct the disposition of: 0
shares.
(iv) shared power to dispose or direct the disposition of:
1,773,823(1,2) shares.
- --------
(5) Includes 512,393 shares of Common Stock owned by Irwin Lieber received upon
the automatic conversion of Series A, Series B and Series D Preferred Stock
and the exercise of Convertible Common Stock Warrants.
(6) Includes 22,624 shares of Common Stock owned by Barry Fingerhut received
upon the automatic conversion of Series D Preferred Stock.
Page 16 of 22
<PAGE>
7. Jonathan Lieber:
(a) Amount Beneficially Owned: 1,773,823(1,2) shares. Reporting person
is a general partner of Wheatley II, and an officer of Applewood
Capital Corp. Jonathan Lieber is the son of Irwin Lieber and the
brother of Seth Lieber.
(b) Percent of Class: 7.8%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 0 shares.
(ii) shared power to vote or direct the vote: 1,773,823(1,2)
shares.
(iii)sole power to dispose or direct the disposition of: 0
shares.
(iv) shared power to dispose or direct the disposition of:
1,773,823(1,2) shares.
8. Woodland Partners:
(a) Amount Beneficially Owned: 512,393(2,3,4) shares.
(b) Percent of Class: 2.2%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 362,393(3) shares.
(ii) shared power to vote or direct the vote: 150,000(2,4) shares.
(iii)sole power to dispose or direct the disposition of:
362,393(3) shares.
(iv) shared power to dispose or direct the disposition of:
150,000(2,4) shares.
9. Brookwood Partners, L.P. ("Brookwood"):
(a) Amount Beneficially Owned: 512,393(2,3,4) shares.
(b) Percent of Class: 2.2%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 150,000(4) shares.
(ii) shared power to vote or direct the vote: 362,393(2,3) shares.
(iii)sole power to dispose or direct the disposition of:
150,000(4) shares.
(iv) shared power to dispose or direct the disposition of:
362,393(2,3) shares.
10. Marilyn Rubenstein:
(a) Amount Beneficially Owned: 512,393(2,3,4) Reporting person is a
general partner of Woodland Partners and Brookwood. Marilyn
Rubenstein is the wife of Barry Rubenstein.
(b) Percent of Class: 2.2%
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 0 shares.
(ii) shared power to vote or direct the vote: 512,393(2,3,4)
shares.
(iii)sole power to dispose or direct the disposition of: 0
shares.
(iv) shared power to dispose or direct the disposition of:
512,393(2,3,4) shares.
Item 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following. |_|
Instruction: Dissolution of a group requires a response to this item.
Page 17 of 22
<PAGE>
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
Not Applicable.
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on By the Parent Holding Company.
Not Applicable.
Item 8. Identification and Classification of Members of the Group.
See Exhibit A for Joint Filing Agreement.
Item 9. Notice of Dissolution of Group.
Not Applicable.
Item 10. Certification.
(b) The following certification shall be included if the statement is
filed pursuant to ss. 240.13d-1(c):
By signing below each party certifies that, to the best of
his/her/its knowledge and belief, the securities referred to
above were not acquired and are not held for the purpose of or
with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held
in connection with or as a participant in any transaction having
that purpose or effect.
Page 18 of 22
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief,
each of the undersigned hereby certifies that the information set forth in this
statement is true, complete and correct.
Date: October 13, 1999
WHEATLEY PARTNERS II, L.P.
By: /s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein, a General Partner
APPLEWOOD CAPITAL CORP.
By: /s/Irwin Lieber
-----------------------------------------
Irwin Lieber, Secretary and Treasurer
/s/Barry Fingerhut
-----------------------------------------
Barry Fingerhut
/s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein
/s/Irwin Lieber
-----------------------------------------
Irwin Lieber
/s/Seth Lieber
-----------------------------------------
Seth Lieber
/s/Jonathan Lieber
-----------------------------------------
Jonathan Lieber
WOODLAND PARTNERS
By: /s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein, a General Partner
Page 19 of 22
<PAGE>
BROOKWOOD PARTNERS, L.P.
By: /s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein, a General Partner
/s/Marilyn Rubenstein
-----------------------------------------
Marilyn Rubenstein
Attention: Intentional misstatements or omissions of fact constitute Federal
criminal violations (See 18 U.S.C. 1001)
Page 20 of 22
<PAGE>
Exhibit A
JOINT FILING AGREEMENT
In accordance with Rule 13d-1 under the Securities Exchange Act of 1934, as
amended, the undersigned hereby agree to the joint filing on behalf of each of
them of a statement on Schedule 13G (including amendments thereto) with respect
to the Common Stock, $0.001 par value per share, of Keynote Systems, Inc. and
that this Agreement be included as an Exhibit to such joint filing.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement as of the
23rd day of September, 1999.
WHEATLEY PARTNERS II, L.P.
By: /s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein, a General Partner
APPLEWOOD CAPITAL CORP.
By: /s/Irwin Lieber
-----------------------------------------
Irwin Lieber, Secretary and Treasurer
/s/Barry Fingerhut
-----------------------------------------
Barry Fingerhut
/s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein
/s/Irwin Lieber
-----------------------------------------
Irwin Lieber
/s/Seth Lieber
-----------------------------------------
Seth Lieber
/s/Jonathan Lieber
-----------------------------------------
Jonathan Lieber
WOODLAND PARTNERS
By: /s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein, a General Partner
Page 21 of 22
<PAGE>
BROOKWOOD PARTNERS, L.P.
By: /s/Barry Rubenstein
-----------------------------------------
Barry Rubenstein, a General Partner
/s/Marilyn Rubenstein
-----------------------------------------
Marilyn Rubenstein
Page 22 of 22
