<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
------
eToys Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.0001 par value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
297862104
----------------------------------
(CUSIP Number)
December 31, 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)
/ / Rule 13d-1(c)
/X/ 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).
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CUSIP No. 297862104 13G Page 2 of 14 pages
---------
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(1) NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Highland Capital Partners III Limited Partnership
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) / /
OF A GROUP (SEE INSTRUCTIONS) (b) / /
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF SHARES (5) SOLE VOTING POWER
BENEFICIALLY 0
OWNED BY --------------------------------------------------
EACH REPORTING (6) SHARED VOTING POWER
PERSON WITH: 6,572,842
--------------------------------------------------
(7) SOLE DISPOSITIVE POWER
0
--------------------------------------------------
(8) SHARED DISPOSITIVE POWER
6,572,842
- -------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,572,842
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(10) CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) / /
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(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.5%
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(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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<PAGE>
CUSIP No. 297862104 Page 3 of 14 pages
---------
- -------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Highland Management Partners III Limited Partnership
- -------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) / /
OF A GROUP (SEE INSTRUCTIONS) (b) / /
- -------------------------------------------------------------------------------
(3) SEC USE ONLY
- -------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------
NUMBER OF SHARES (5) SOLE VOTING POWER
BENEFICIALLY 0
OWNED BY --------------------------------------------------
EACH REPORTING (6) SHARED VOTING POWER
PERSON WITH: 6,572,842
--------------------------------------------------
(7) SOLE DISPOSITIVE POWER
0
--------------------------------------------------
(8) SHARED DISPOSITIVE POWER
6,572,842
- -------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,572,842
- -------------------------------------------------------------------------------
(10) CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) / /
- -------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.5%
- -------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 297862104 13G Page 4 of 14 pages
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(1) NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Robert F. Higgins
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) / /
OF A GROUP (SEE INSTRUCTIONS) (b) / /
- -------------------------------------------------------------------------------
(3) SEC USE ONLY
- -------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------
NUMBER OF SHARES (5) SOLE VOTING POWER
BENEFICIALLY 282,197
OWNED BY --------------------------------------------------
EACH REPORTING (6) SHARED VOTING POWER
PERSON WITH: 7,846,709
--------------------------------------------------
(7) SOLE DISPOSITIVE POWER
282,197
--------------------------------------------------
(8) SHARED DISPOSITIVE POWER
7,846,709
- -------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,128,906
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(10) CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) / /
- -------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.8%
- -------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- -------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 297862104 13G Page 5 of 14 pages
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(1) NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Paul A. Maeder
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) / /
OF A GROUP (SEE INSTRUCTIONS) (b) / /
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF SHARES (5) SOLE VOTING POWER
BENEFICIALLY 280,851
OWNED BY --------------------------------------------------
EACH REPORTING (6) SHARED VOTING POWER
PERSON WITH: 7,846,709
--------------------------------------------------
(7) SOLE DISPOSITIVE POWER
280,851
--------------------------------------------------
(8) SHARED DISPOSITIVE POWER
7,846,709
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,127,560
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(10) CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) / /
- -------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.8%
- -------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- -------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 297862104 13G Page 6 of 14 pages
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(1) NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Wycliffe K. Grousbeck
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) / /
OF A GROUP (SEE INSTRUCTIONS) (b) / /
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF SHARES (5) SOLE VOTING POWER
BENEFICIALLY 94,190
OWNED BY --------------------------------------------------
EACH REPORTING (6) SHARED VOTING POWER
PERSON WITH: 7,846,709
--------------------------------------------------
(7) SOLE DISPOSITIVE POWER
94,190
--------------------------------------------------
(8) SHARED DISPOSITIVE POWER
7,846,709
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,940,899
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(10) CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) / /
- -------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.6%
- -------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- -------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 297862104 13G Page 7 of 14 pages
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(1) NAMES OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
Daniel J. Nova
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) / /
OF A GROUP (SEE INSTRUCTIONS) (b) / /
- -------------------------------------------------------------------------------
(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF SHARES (5) SOLE VOTING POWER
BENEFICIALLY 211,833
OWNED BY --------------------------------------------------
EACH REPORTING (6) SHARED VOTING POWER
PERSON WITH: 7,846,709
--------------------------------------------------
(7) SOLE DISPOSITIVE POWER
211,833
--------------------------------------------------
(8) SHARED DISPOSITIVE POWER
7,846,709
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,058,542
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(10) CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS) / /
- -------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.7%
- -------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- -------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
Item 1(a). NAME OF ISSUER: eToys Inc. (the "Company")
Item 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES: 3100 Ocean
Park Boulevard, Suite 300, Santa Monica, California 90405
<TABLE>
<CAPTION>
Item 2(a) Item 2(b) Item 2(c)
- --------- --------- ---------
CITIZENSHIP OR PLACE
NAME OF PERSON FILING ADDRESS OF ORGANIZATION
- --------------------- ------- --------------------
<S> <C> <C>
Highland Capital Partners III Limited Two International Place Delaware
Partnership ("Highland Capital"), a Boston, MA 02110
Delaware limited partnership
Highland Management Partners III Two International Place Delaware
Limited Partnership ("Highland Boston, MA 02110
Management"), a Delaware
limited partnership and the sole
general partner of Highland
Capital
Robert F. Higgins ("Higgins") Highland Capital Partners, Inc. United States
Two International Place
Boston, MA 02110
Paul A. Maeder ("Maeder") Highland Capital Partners, Inc. United States
Two International Place
Boston, MA 02110
Daniel J. Nova ("Nova") Highland Capital Partners, Inc. United States
Two International Place
Boston, MA 02110
Wycliffe K. Grousbeck ("Grousbeck") Highland Capital Partners, Inc. United States
Two International Place
Boston, MA 02110
</TABLE>
Item 2(d). TITLE OF CLASS OF SECURITIES: Common Stock, $.0001 par value.
Item 2(e). CUSIP NUMBER: 297862104
Item 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13d-1(b), OR
13d-2(b), CHECK WHETHER THE PERSON FILING IS A:
Not applicable.
Page 8 of 14 pages
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Item 4. OWNERSHIP.
(a) Amount Beneficially Owned:
Highland Capital is the record owner of and beneficially owns
6,572,842 shares (the "Shares") of Common Stock. Highland
Capital has the power to vote or direct the disposition of all
of the Shares. Such power is exercised through Highland
Management as the sole general partner of Highland Capital.
Highland Management, as the general partner of Highland
Capital, may be deemed to own the Shares beneficially.
Higgins, Maeder, Nova and Grousbeck (the "Managers") have the
power over all investment decisions of Highland Management and
therefore may be deemed to share beneficial ownership of the
Shares by virtue of their status as controlling persons of
Highland Management. In addition, (i) Highland Entrepreneurs'
Fund III Limited Partnership ("HEF III") is the record owner
of and beneficially owns 273,868 shares (the "HEF III Shares")
of Common Stock, (ii) Highland Capital Partners IV Limited
Partnership ("HCP IV") is the record owner of and beneficially
owns 960,000 shares (the "HCP IV Shares") of Common Stock and
(iii) Highland Entrepreneurs' Fund IV Limited Partnership
("HEF IV") is the record owner of and beneficially owns 39,999
shares (the "HEF IV Shares") of Common Stock. HEF III has the
power to vote or direct the disposition of all of the HEF III
Shares. Such power is exercised through HEF III, L.L.C. ("HEF
III LLC") as the sole general partner of HEF III. HEF III LLC,
as the general partner of HEF III, may be deemed to own the
HEF III Shares beneficially. The Managers have the power over
all investment decisions of HEF III LLC and therefore may be
deemed to share beneficial ownership of the HEF III Shares by
virtue of their status as controlling persons of HEF III LLC.
HCP IV has the power to vote or direct the disposition of all
of the HCP IV Shares. Such power is exercised through Highland
Management Partners IV LLC ("HMP IV LLC") as the sole general
partner of HCP IV. HMP IV LLC, as the general partner of HCP
IV, may be deemed to own the HCP IV Shares beneficially. The
Managers have the power over all investment decisions of HMP
IV LLC and therefore may be deemed to share beneficial
ownership of the HCP IV Shares by virtue of their status as
controlling persons of HMP IV LLC. HEF IV has the power to
vote or direct the disposition of all of the HEF IV Shares.
Such power is exercised through Highland Entrepreneurs' Fund
IV LLC ("HEF IV LLC") as the sole general partner of HEF IV.
HEF IV LLC, as the general partner of HEF IV, may be deemed to
own the HEF IV Shares beneficially. The Managers have the
power over all investment decisions of HEF IV LLC and
therefore may be deemed to share beneficial ownership of the
HEF IV Shares by virtue of their status as controlling persons
of HEF IV LLC. Highland Management disclaims beneficial
ownership of the Shares and each of the Managers disclaims
beneficial ownership of the Shares, the HEF III Shares, the
HCP IV Shares and the HEF IV Shares.
Higgins is the record owner of and beneficially owns 282,197
shares of Common Stock in addition to the shares listed above.
Maeder is the record owner of and beneficially owns 280,851
shares of Common Stock in addition to the shares
Page 9 of 14 pages
<PAGE>
listed above. Grousbeck is the record owner of and
beneficially owns 94,190 shares of Common Stock in addition to
the shares listed above. Nova is the record owner of and
beneficially owns 211,833 shares of Common Stock in addition
to the shares listed above.
(b) Percent of Class:
Each of Highland Capital and Highland Management may be deemed
to own beneficially 5.5% of the outstanding Common Stock.
Higgins may be deemed to own beneficially 6.8% of the
outstanding Common Stock. Maeder may be deemed to own
beneficially 6.8% of the outstanding Common Stock. Grousbeck
may be deemed to own beneficially 6.6% of the outstanding
Common Stock. Nova may be deemed to own beneficially 6.7% of
the outstanding Common Stock. The foregoing percentage is
based on the 119,756,125 shares of Common Stock reported to be
outstanding as of October 31, 1999 in the Company's Quarterly
Report on Form 10-Q for the quarter ended September 30, 1999.
(c) Number of shares as to which such person has:
(i) Each of Highland Capital and Highland Management has
sole power to vote or direct the vote of -0- shares.
Higgins has sole power to vote or direct the vote of
282,197 shares. Maeder has sole power to vote or
direct the vote of 280,851 shares. Grousbeck has sole
power to vote or direct the vote of 94,190 shares.
Nova has sole power to vote or direct the vote of
211,833 shares.
(ii) Highland Capital and Highland Management have shared
power to vote or to direct the vote of 6,572,842
shares. In addition, each of the Managers have shared
power to vote or to direct the vote of an additional
1,273,867 shares, for an aggregate number of
7,846,709 shares.
(iii) Each of Highland Capital and Highland Management has
sole power to dispose or to direct the disposition of
-0- shares. Higgins has sole power to dispose or to
direct the disposition of 282,197 shares. Maeder has
sole power to dispose or to direct the disposition of
280,851 shares. Grousbeck has sole power to dispose
or to direct the disposition of 94,190 shares. Nova
has sole power to dispose or to direct the
disposition of 211,833 shares.
(iv) Highland Capital, Highland Management and each of the
Investing General Partners have shared power to
dispose or to direct the disposition of 6,572,842
shares. In addition, each of the Managers have shared
power to dispose or to direct the disposition of an
additional 1,273,867 shares, for an aggregate number
of 7,846,709 shares.
Page 10 of 14 pages
<PAGE>
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.
Highland Capital, Highland Management, and each of the
Investing General Partners expressly disclaim membership in a
"group" as defined in Rule 13d - 1(b)(1)(ii)(J).
Item 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable.
Item 10. CERTIFICATION.
Not applicable.
Page 11 of 14 pages
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SIGNATURE
After reasonable inquiry and to the best of his or its knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: February 11, 2000
HIGHLAND CAPITAL PARTNERS III
LIMITED PARTNERSHIP
By: Highland Management
Partners III Limited Partnership
By: /s/ Robert F. Higgins
-------------------------------
General Partner
HIGHLAND MANAGEMENT PARTNERS III
LIMITED PARTNERSHIP
By: /s/ Robert F. Higgins
-------------------------------
General Partner
/s/ Robert F. Higgins
- ----------------------------------
Robert F. Higgins
/s/ Paul A. Maeder
- ----------------------------------
Paul A. Maeder
/s/ Wycliffe K. Grousbeck
- ----------------------------------
Wycliffe K. Grousbeck
/s/ Daniel J. Nova
- ----------------------------------
Daniel J. Nova
Page 12 of 14 pages
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Exhibit Index
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION PAGE NO.
<S> <C> <C>
A Agreement of Joint Filing 14
</TABLE>
Page 13 of 14 pages
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EXHIBIT A
AGREEMENT OF JOINT FILING
Pursuant to Rule 13d-1(k)(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 on behalf of all of the undersigned with
respect to the ownership of shares of Common Stock of eToys Inc.
This agreement may be executed in any number of counterparts, each of
which shall be deemed an original.
EXECUTED as a sealed instrument this 11th day of February, 2000.
HIGHLAND CAPITAL PARTNERS III
LIMITED PARTNERSHIP
By: Highland Management
Partners III Limited Partnership
By: /s/ Robert F. Higgins
-----------------------------
General Partner
HIGHLAND MANAGEMENT PARTNERS III
LIMITED PARTNERSHIP
By: /s/ Robert F. Higgins
-----------------------------
General Partner
/s/ Robert F. Higgins
- -----------------------------
Robert F. Higgins
/s/ Paul A. Maeder
- -----------------------------
Paul A. Maeder
/s/ Wycliffe K. Grousbeck
- -----------------------------
Wycliffe K. Grousbeck
/s/ Daniel J. Nova
- -----------------------------
Daniel J. Nova
Page 14 of 14 pages
