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FORM 3
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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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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<S> <C> <C> <C>
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1. Name and Address of Reporting Person* 2. Date of Event Requiring 4. Issuer Name and Ticker or 6. If Amendment, Date
Hegna Gary G. Statement Trading Symbol of Original
- ---------------------------------------- (Month/Day/Year) Smith-Gardner & Associates, Inc. (Month/Day/Year)
(Last) (First) (Middle) (SGAI)
c/o Smith-Gardner & Associates, Inc. 01/28/99 ----------------------------------
1615 South Congress Avenue ---------------------------- 5. Relationship of Reporting -----------------------
- ---------------------------------------- 3. IRS Identification Person to Issuer 7. Individual or Joint/
(Street) Number of Reporting (Check all applicable) Group Filing (Check
Delray Beach FL 33445-6368 Person, if an Entity X Director 10% Owner applicable line)
- ---------------------------------------- (Voluntary) ----- ----- X Form filed by
(City) (State) (Zip) ---------------------------- X Officer Other ----- One Reporting
----- (give ----- (specify Person
title below) below) Form filed by
President and Chief Executive ----- More than One
Officer Reporting Person
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TABLE 1 -- NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
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1. Title of Security 2. Amount of Securities 3. Ownership Form: 4. Nature of Indirect
(Instr. 4) Beneficially Owned Direct (D) or Beneficial
(Instr. 4) Indirect (I) Ownership (Instr. 4)
(Instr. 5)
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*If the Form is filed by more than one Reporting Person, see Instruction 5(b)(v).
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
(Print or Type Responses)
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FORM 3 (CONTINUED) TABLE II -- DERIVATIVE SECURITIES BENEFICIALLY OWNED
(E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
<S> <C> <C> <C> <C> <C>
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1. Title of Derivative Security 2. Date 3. Title and Amount of 4. Conver- 5. Owner- 6. Nature of Indirect
(Instr. 4) Exercisable and Securities Underlying sion or ship Beneficial Ownership
Expiration Date Derivative Security Exercise Form of (Instr. 5)
(Month/Day/ (Instr. 4) Price of Deriv-
Year) Deri- ative
vative Security:
Security Direct
------------------------------------------------- (D) or
Date Expira- Amount or Indirect
Exercis- tion Title Number (I)
able Date of Shares (Instr.
5)
Employee Stock Option
(right to buy) (1) 04/22/06 Common Stock 494,120 $2.53/sh. D N/A
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Employee Stock Option
(right to buy) (2) 06/29/08 Common Stock 200,000 (3) D N/A
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Explanation of Responses:
(1) The option vested as to 82,353 shares on 04/22/97, and vests as to an additional 20,588 shares at the end of each of the
twelve successive calendar quarters after such date. The option vests as to an additional 82,355 shares upon the earlier of
03/21/06 or the day immediately following the first period of time during which the market value of the Issuer's outstanding
Common Stock equals or exceeds $100,000,000 for thirty consecutive days. The option vests as to an additional 82,356 shares
upon the earlier of 03/21/06 or the day immediately following the first period of time during which the market value of the
Issuer's outstanding Common Stock equals or exceeds $150,000,000 for thirty consecutive days.
(2) 25% of the option vests on 06/30/99 (the "Anniversary Date"), and the remaining 75% vests in twelve equal successive quarterly
installments beginning on the last day of the calendar quarter which includes the Anniversary Date.
(3) The exercise price per share is the initial public offering price of a share of the Issuer's Common Stock upon the consummation
of the Issuer's initial public offering.
/s/ Gary G. Hegna 1/28/99
**Intentional misstatements or omissions of facts constitute Federal Criminal ------------------------------- ------------------
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). **Signature of Reporting Person Date
Gary G. Hegna
Note. File three copies of this form, one of which must be manually signed. Page 2
If space provided is insufficient, See Instruction 6 for procedure.
(Print or Type Responses)
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