<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1 )*
Versatility Inc.
----------------
(Name of Issuer)
Common Stock
------------
(Title of Class of Securities)
925311-10-2
-----------
(CUSIP Number)
*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> 2
CUSIP NO. 925311-10-2 13G PAGE 2 OF 12 PAGES
- ------ -------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Edison Venture Fund III, L. P. 22-3278427
- ------ -------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ------ -------------------------------------------------------------------------
3 SEC USE ONLY
- ------ -------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ----------------------- ----- --------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF
----- --------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 501,957
----- --------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----- --------------------------------------------------
WITH 8 SHARED DISPOSITIVE POWER
501,957
- ------ -------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,957
- ------ -------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]
- ------ -------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.7%
- ------ -------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON *
PN
- ------ -------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
CUSIP NO. 925311-10-2 13G PAGE 3 OF 12 PAGES
- ------ -------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Edison Partners III, L.P. 22-3278431
- ------ -------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ------ -------------------------------------------------------------------------
3 SEC USE ONLY
- ------ -------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ----------------------- ----- --------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF
----- --------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 501,957
----- --------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----- --------------------------------------------------
WITH 8 SHARED DISPOSITIVE POWER
501,957
- ------ -------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,957
- ------ -------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]
- ------ -------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.7%
- ------ -------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON *
PN
- ------ -------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
CUSIP NO. 925311-10-2 13G PAGE 4 OF 12 PAGES
- ------ -------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
John H. Martinson ###-##-####
- ------ -------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ------ -------------------------------------------------------------------------
3 SEC USE ONLY
- ------ -------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------------------- ----- --------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF
----- --------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 501,957
----- --------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----- --------------------------------------------------
WITH 8 SHARED DISPOSITIVE POWER
501,957
- ------ -------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,957
- ------ -------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]
- ------ -------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.7%
- ------ -------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON *
IN
- ------ -------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
CUSIP NO. 925311-10-2 13G PAGE 5 OF 12 PAGES
- ------ -------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Richard J. Defieux ###-##-####
- ------ -------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ------ -------------------------------------------------------------------------
3 SEC USE ONLY
- ------ -------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------------------- ----- --------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF
----- --------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 501,957
----- --------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----- --------------------------------------------------
WITH 8 SHARED DISPOSITIVE POWER
501,957
- ------ -------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,957
- ------ -------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]
- ------ -------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.7%
- ------ -------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON *
IN
- ------ -------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
CUSIP NO. 925311-10-2 13G PAGE 6 OF 12 PAGES
- ------ -------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Gustav H. Koven, III ###-##-####
- ------ -------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ------ -------------------------------------------------------------------------
3 SEC USE ONLY
- ------ -------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------------------- ----- --------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF
----- --------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 501,957
----- --------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----- --------------------------------------------------
WITH 8 SHARED DISPOSITIVE POWER
501,957
- ------ -------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,957
- ------ -------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]
- ------ -------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.7%
- ------ -------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON *
IN
- ------ -------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
CUSIP NO. 925311-10-2 13G PAGE 7 OF 12 PAGES
- ------ -------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Thomas A. Smith ###-##-####
- ------ -------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ------ -------------------------------------------------------------------------
3 SEC USE ONLY
- ------ -------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------------------- ----- --------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF
----- --------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 501,957
----- --------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----- --------------------------------------------------
WITH 8 SHARED DISPOSITIVE POWER
501,957
- ------ -------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,957
- ------ -------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]
- ------ -------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.7%
- ------ -------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON *
IN
- ------ -------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
CUSIP NO. 925311-10-2 13G PAGE 8 OF 12 PAGES
Item 1(a). Name of Issuer: Versatility Inc. (the "Issuer").
Item 1(b). Address of Issuer's Principal Executive Offices: 11781 Lee
Jackson Memorial Highway, Suite 600, Fairfax, Virgina 22033.
Item 2(a). Names of Persons Filing: Edison Venture Fund III, L.P.
("Edison Venture Fund III"); Edison Partners III, L.P.
("Edison Partners III"); John H. Martinson, Richard J.
Defieux, Gustav H. Koven, III and Thomas A. Smith
(collectively, the "General Partners"). The General Partners,
Edison Venture Fund III and Edison Partners III collectively
are referred to as the "Reporting Persons."
Item 2(b). Address of Principal Business Office: The principal business
address of the Reporting Persons is 997 Lenox Drive #3,
Lawrenceville, NJ 08648.
Item 2(c). Citizenship: Edison Venture Fund III and Edison Partners III
are limited partnerships organized under the laws of the State
of Delaware. Each General Partner is a U.S. citizen.
Item 2(d). Title of Class of Securities: Common Stock, $.01 par value
(the "Common Stock").
Item 2(e). CUSIP Number: 925311-10-2.
Item 3. If this statement is filed pursuant to Rules 13d-1(b), or
13d-2(b), check whether the person filing is a:
(a) [ ] Broker or Dealer registered under Section 15 of the
Securities Exchange Act of 1934 (the "Act").
(b) [ ] Bank as defined in Section 3(a)(6) of the Act.
(c) [ ] Insurance Company as defined in Section 3(a)(19) of
the Act.
(d) [ ] Investment Company registered under Section 8 of
the Investment Company Act of 1940.
(e) [ ] Investment Adviser registered under Section 203 of
the Investment Advisers Act of 1940.
(f) [ ] Employee Benefit Plan, Pension Fund which is
subject to the provisions of the Employee
Retirement Income Security Act of 1974 or Endowment
Fund; see Rule 13d-1(b)(1)(ii)(F) of the Act.
(g) [ ] Parent Holding Company, in accordance with Rule
13d-1(b)(ii)(G) of the Act.
(h) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(H)
of the Act. Not Applicable.
Item 4. Ownership:
(a) Amount Beneficially Owned: Each of Edison Venture
Fund III, Edison Partners III, John H. Martinson,
Richard J. Defieux, Gustav H. Koven, III and Thomas
A. Smith may be deemed to own beneficially 501,957
shares of Common Stock as of December 31, 1997. Each
of the General Partners expressly disclaims
beneficial ownership of any such shares of Common
Stock.
<PAGE> 9
CUSIP NO. 925311-10-2 13G PAGE 9 OF 12 PAGES
Edison Venture Fund III, of which Edison Partners III
is the sole general partner, is the record owner of
501,957 shares of Common Stock as of December 31,
1997. The General Partners are the general partners
of Edison Partners III.
(b) Percent of Class: Edison Venture Fund III, 6.7%;
Edison Partners III, 6.7%; John H. Martinson, 6.7%;
Richard J. Defieux, 6.7%; Gustav H. Koven, III, 6.7%;
and Thomas A. Smith, 6.7%. The foregoing percentages
are calculated based on the 7,542,902 shares of
Common Stock reported to be outstanding in the
Issuer's Quarterly Report on Form 10-Q for the
quarterly period ended October 31, 1997.
(c) Number of Shares as to Which Such Person Has:
(i) Sole power to vote or to direct the vote: Edison
Venture Fund III, 0; Edison Partners III, 0; John H.
Martinson, 0; Richard J. Defieux, 0; Gustav H. Koven,
III, 0; and Thomas A. Smith, 0.
(ii) Shared power to vote or to direct the vote:
Edison Venture Fund III, 501,957 Edison Partners III,
501,957; John H. Martinson, 501,957; Richard J.
Defieux, 501,957; Gustav H. Koven, III, 501,957; and
Thomas A. Smith, 501,957.
(iii) Sole power to dispose or to direct the
disposition of: Edison Venture Fund III, 0; Edison
Partners III, 0; John H. Martinson, 0; Richard J.
Defieux, 0; Gustav H. Koven, III, 0; and Thomas A.
Smith, 0.
(iv) Shared power to dispose or to direct the
disposition of: Edison Venture Fund III, 501,957;
Edison Partners III, 501,957; John H. Martinson,
501,957; Richard J. Defieux, 501,957; Gustav H.
Koven, III, 501,957; and Thomas A. Smith, 501,957.
Item 5. Ownership of Five Percent or Less of a Class:
Not Applicable.
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:
Not Applicable. Edison Venture Fund III, Edison Partners III
and each of the General Partners expressly disclaim membership
in a "group" as defined in Rule 130-5(b)(1).
<PAGE> 10
CUSIP NO. 925311-10-2 13G PAGE 10 OF 12 PAGES
Item 9. Notice of Dissolution of Group:
Not Applicable.
Item 10. Certification:
Not Applicable. This statement on Schedule 13G is not filed
pursuant to Rule 13d-1(b).
<PAGE> 11
CUSIP NO. 925311-10-2 13G PAGE 11 OF 12 PAGES
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: February 10, 1998 EDISON VENTURE FUND III, L.P.
By: Edison Partners III, L.P.,
its General Partner
By: /s/ John H. Martinson
------------------------------
General Partner
EDISON PARTNERS III, L.P.
By: /s/ John H. Martinson
------------------------------
General Partner
/s/ John H. Martinson
----------------------------------
John H. Martinson
/s/ Richard J. Defieux
----------------------------------
Richard J. Defieux
/s/ Gustav H. Koven, III
----------------------------------
Gustav H. Koven, III
/s/ Thomas A. Smith
------------------------------
Thomas A. Smith
<PAGE> 12
CUSIP NO. 925311-10-2 13G PAGE 12 OF 12 PAGES
Exhibit 1
AGREEMENT
Pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act of 1934,
the undersigned hereby agree that only one statement containing the information
required by Schedule 13G need be filed with respect to the ownership by each of
the undersigned of shares of stock of Versatility Inc.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original.
Dated: February 10, 1998 EDISON VENTURE FUND III, L.P.
By: Edison Partners III, L.P.,
its General Partner
By: /s/ John H. Martinson
------------------------------
General Partner
EDISON PARTNERS III, L.P.
By: /s/ John H. Martinson
------------------------------
General Partner
/s/ John H. Martinson
----------------------------------
John H. Martinson
/s/ Richard J. Defieux
----------------------------------
Richard J. Defieux
/s/ Gustav H. Koven, III
----------------------------------
Gustav H. Koven, III
/s/ Thomas A. Smith
----------------------------------
Thomas A. Smith
