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OMB APPROVAL
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OMB Number 3235-0104
Expires: 12-31-2001
Estimated average burden
hours per response ....... 0.5
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person*
Tessler Allan R.
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(Last) (First) (Middle)
c/o Jackpot Enterprises, Inc.
1110 Palms Airport Drive
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(Street)
Las Vegas Nevada 89119
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(City) (State) (Zip)
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2. Date of Event Requiring Statement (Month/Day/Year)
November 2, 2000
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3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)
________________________________________________________________________________
4. Issuer Name and Ticker or Trading Symbol
InterWorld Corporation (INTW)
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5. Relationship of Reporting Person to Issuer
(Check all applicable)
[X] Director [_] 10% Owner
[_] Officer (give title below) [_] Other (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
________________________________________________________________________________
7. Individual or Joint/Group Filing (Check applicable line)
[X] Form Filed by 1 Reporting Person
[_] Form Filed by More than 1 Reporting Person
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Table I -- Non-Derivative Securities Beneficially Owned
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<TABLE>
<CAPTION>
3. Ownership Form:
2. Amount of Securities Direct (D) or
1. Title of Security Beneficially Owned Indirect (I) 4. Nature of Indirect Beneficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr. 4)
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<S> <C> <C> <C>
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Common Stock, $.01 4,270,406 I (1), (3)
par value
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Over)
SEC 1473 (3-99)
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<PAGE>
FORM 3 (continued)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
5. Owner-
3. Title and Amount of Securities ship
Underlying Derivative Security Form of
2. Date Exercisable (Instr. 4) Derivative
and Expiration Date --------------------------------- 4. Conver- Security:
(Month/Day/Year) Amount sion or Direct 6. Nature of
---------------------- or Exercise (D) or Indirect
Date Expira- Number Price of Indirect Beneficial
1. Title of Derivative Exer- tion of Derivative (I) Ownership
Security (Instr. 4) cisable Date Title Shares Security (Instr. 5) (Instr. 5)
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<S> <C> <C> <C> <C> <C> <C> <C>
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8% PIK Convertible 4/12/01 10/10/05 Common Stock, $.01 5,866,905 $6.25/share I By Jackpot
Series A Preferred Stock par value Enterprises,
Inc. (3)
Warrant 4/12/01 10/10/05 Common Stock, $.01 (2) $7.25/share I By Jackpot
par value Enterprises,
Inc. (3)
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</TABLE>
Explanation of Responses:
1. On October 12, 2000 Jackpot, on behalf of J Net Venture I LLC, entered into
a Loan and Forbearance Agreement with Michael Donohue, Chairman of the
Issuer, pursuant to which Jackpot agreed to purchase from Salomon Smith Barney
("SSB") a loan from SSB to Mr. Donohue. The loan is secured by 4,270,406
shares of Common Stock owned by Mr. Donohue. Pursuant to a Call/Participation
Agreement, Mr. Donohue agreed that Jackpot would share in the profit on a
portion of the stock securing the loan once certain conditions, including
repayment of the loan, were met. Mr. Donohue has sole power to vote and
dispose of such shares. However, Mr. Donohue has agreed that for so long as
the loan is outstanding, given the highly leveraged nature of the loan, he
would, prior to any vote of the stockholders of Issuer, consult with Jackpot
and obtain Jackpot's view with respect to such vote. He also agreed that in
the event the Board of Directors of Issuer approves a merger of Jackpot with
Issuer on or before April 10, 2001, Mr. Donohue will execute an appropriate
voting agreement pursuant to which he will agree to vote his stock in favor
of such merger.
2. Jackpot Enterprises, Inc. acquired a warrant to acquire a number of
shares of Common Stock of the Issuer equal to 5,866,905 less the number of
shares issuable upon conversion of the Series A Preferred Stock at an initial
exercise price of $7.25 per share.
3. The Reporting Person disclaims beneficial ownership of these securities,
and this report shall not be deemed an admission that the Reporting Person is
the beneficial owner of such securities for purposes of Section 16 or for any
other purpose.
/s/ Allan R. Tessler 11/13/2000
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
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