UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 1)
MERCATOR SOFTWARE, INC.
--------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
--------------------------------------------------------------------------------
(Title of Class of Securities)
--------------------------------------------------------------------------------
587587106
(CUSIP Number)
with a copy to:
Rodney Bienvenu Kyle C. Badger
Strategic Software Holdings, LLC McDermott, Will & Emery
1465 Post Road East, Second Floor 227 West Monroe
Westport, Connecticut 06880 Chicago, Illinois 60606
Tel. No.: (203) 259-7387 Tel. (312) 372-2000
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
FEBRUARY 3, 2003
--------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
statement because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box: [ ]
The information required on 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).
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
BROKEN ARROW I, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) 38-3664612
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES 1,675,500
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
1,675,500
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,675,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.85%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
STRATEGIC SOFTWARE HOLDINGS, LLC
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) 30-0091524
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CONNECTICUT
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES SEE ITEM 5
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
SEE ITEM 5
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
BIENVENU MANAGEMENT, LLC
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CONNECTICUT
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES SEE ITEM 5
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
SEE ITEM 5
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
RODNEY BIENVENU
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES SEE ITEM 5
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
SEE ITEM 5
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
JAMES DENNEDY
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES SEE ITEM 5
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
SEE ITEM 5
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
EMPIRE CAPITAL PARTNERS, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES SEE ITEM 5
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
SEE ITEM 5
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
EMPIRE GP, L.L.C.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF/OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES SEE ITEM 5
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
SEE ITEM 5
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
EMPIRE CAPITAL MANAGEMENT, L.L.C.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF/OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES SEE ITEM 5
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0-
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
SEE ITEM 5
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
SCOTT A. FINE
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF/OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES -0-
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON SEE ITEM 5
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------
10 SHARED DISPOSITIVE POWER
SEE ITEM 5
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
PETER J. RICHARDS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF/OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES -0-
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON SEE ITEM 5
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------
10 SHARED DISPOSITIVE POWER
SEE ITEM 5
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
SEE ITEM 5
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
SEE ITEM 5
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
SCHEDULE 13D
CUSIP No. 587587106
-------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
CHARTER OAK PARTNERS, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CONNECTICUT
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF SHARES 906,900
BENEFICIALLY ------------------------------------
OWNED BY EACH 8 SHARED VOTING POWER
REPORTING PERSON -0--
WITH ------------------------------------
9 SOLE DISPOSITIVE POWER
-906,900-
------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
906,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
SCHEDULE 13D
ITEM 1. SECURITY AND ISSUER
This Amendment No. 1 to Schedule 13D relates to the Common Stock,
par value $0.01 per share (the "Common Stock") of Mercator Software, Inc., a
Delaware corporation (the "Issuer"), having its principal executive offices at
45 Danbury Road, Wilton, Connecticut 06897.
ITEM 2. IDENTITY AND BACKGROUND
(a), (b), (c) & (f)
This Amendment No. 1 to Schedule 13D is filed by Broken Arrow I,
L.P., a Delaware limited partnership ("Broken Arrow"); Strategic Software
Holdings, LLC, a Connecticut limited liability company ("SSH"); Bienvenu
Management, LLC, a Connecticut limited liability company ("Bienvenu
Management"), Rodney Bienvenu, James Dennedy, Empire Capital Partners, L.P., a
Delaware limited partnership ("Empire Capital"); Empire GP, L.L.C., a Delaware
limited liability company ("Empire GP"); Empire Capital Management, L.L.C., a
Delaware limited liability company ("Empire Capital Management") Charter Oak
Partners, L.P., a Connecticut limited partnership, Scott A. Fine, and Peter J.
Richards ("Charter Oak" collectively with Broken Arrow, SSH, Empire Capital,
Empire GP, Empire Capital Management and Messrs. Bienvenu, Dennedy, Fine and
Richards, the "Reporting Persons").
The business address of Broken Arrow and SSH is 1465 East Post
Road, Second Floor, Westport, Connecticut 06880.
The names, positions and principal business addresses of each of
the managers and executive officers of SSH are as follows:
Name Position with SSH Principal Business Address
---- ----------------- --------------------------
Rodney Bienvenu Chairman and CEO 1465 East Post Road
Second Floor
Westport, Connecticut 06880
James Dennedy President 1465 East Post Road
Second Floor
Westport, Connecticut 06880
The business address of Empire Capital, Empire Capital Management
and Empire GP is 1 Gorham Island, Westport, Connecticut 06880.
The names, positions and principal business addresses of each of
the managers and executive officers of Empire Capital Management and Empire GP
are as follows:
Name Position Principal Business Address
---- -------- --------------------------
Scott Fine Managing Member 1 Gorham Island
Westport, Connecticut 06880
Peter Richards Managing Member 1 Gorham Island
Westport, Connecticut 06880
The business address of Charter Oak is 10 Wright Street, Building
B, 4th Floor, Westport, Connecticut 06880.
Broken Arrow is principally engaged in the business of investing
and holding securities in various entities. SSH is principally involved in the
business of acting as the general partner of Broken Arrow and investing and
holding securities in various entities. The principal business of Empire Capital
is serving as a private investment limited partnership. Empire Capital is the
majority limited partner in Broken Arrow. The principal business of Empire GP is
serving as general partner of Empire Capital. The principal business of Empire
Capital Management is serving as the management company of Empire Capital. In
addition, Empire Capital Management provides discretionary investment management
services to a limited number of clients. The principal business of Charter Oak
is serving as a private investment limited partnership. Empire Capital
Management manages a portion of the assets of Charter Oak pursuant to a
discretionary investment management agreement.
(d) & (e)
During the last five years, none of the Reporting Persons nor, to
the knowledge of the Reporting Persons, any general partner, manager or
executive officer of the Reporting Persons, has been (i) convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors); or (ii) a
party to a civil proceeding of a judicial or administrative body resulting in a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws, or finding
any violations with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The shares of Common Stock purchased by Broken Arrow were purchased
with working capital. None of the shares of Common Stock directly owned by
Broken Arrow may be pledged as collateral for loans made by banks or brokerage
firms.
The shares of Common Stock purchased by Empire Capital Management, on
behalf of Charter Oak, were purchased with working capital of Charter Oak. All
or part of the shares of Common Stock owned by Charter Oak may from time to time
be pledged with one or more banking institutions or brokerage firms as
collateral for loans made by such bank(s) or brokerage firm(s) to Empire Capital
Management, on behalf of Charter Oak. Such loans bear interest at a rate based
upon the broker's call rate from time to time in effect. Such indebtedness may
be refinanced with other banks or broker-dealers.
ITEM 4. PURPOSE OF TRANSACTION
SSH, on behalf of Broken Arrow, acquired the shares of Common Stock for
the purpose of obtaining a significant equity position in the Issuer. SSH
considered the Common Stock to be an attractive investment at the price levels
at which it acquired the shares of Common Stock.
SSH's primary interest is to maximize the value of its investment on
behalf of Broken Arrow. To this end, SSH intends continually to review the
Issuers business affairs and financial position and future prospects, as well as
conditions in the securities markets and general economic and industrial
conditions. Based on such evaluation and review and other factors (including,
without limitation, the attitude of the Board of Directors and management of the
Issuer), SSH will continue to consider various alternative courses of action and
will in the future take such actions with respect to its investment in the
Issuer as it deems appropriate in light of the circumstances existing from time
to time. Such actions may include seeking representation on the Board of
Directors of the Issuer, making recommendations to members of management
concerning various business strategies, acquisitions, dividend policies and
other matters, seeking to acquire control of the Issuer through a merger, proxy
solicitation, tender offer, exchange offer or otherwise, or such other actions
as SSH may deem appropriate. Such actions may involve the purchase of additional
Common Stock or, alternatively, may involve the sale of all or a portion of the
Common Stock held by Broken Arrow in the open market or in privately negotiated
transactions to one or more purchasers.
In a series of conversations beginning December 5, 2002, and continuing
through January 9, 2003, representatives of SSH requested that management of the
Issuer retain an investment banker to consider alternatives for maximizing the
value of the Issuer to its current shareholders, including considering a sale of
the Issuer to a strategic or financial third party. Representatives of SSH and
management of the Issuer scheduled a meeting for January 10, 2003 to discuss
SSH's ideas with respect to these matters. On January 9, 2003, a senior officer
of the Issuer informed Mr. Bienvenu that the Issuer was canceling the scheduled
meeting. As of the date hereof, no further meetings have been scheduled. Given
the market conditions as of this filing, SSH continues to believe that
management should retain an investment banker to consider alternatives for
maximizing the value of the Issuer to its current shareholders. SSH currently
intends to continue to press this point with management of the Issuer.
Bienvenu Management does not directly own any shares of Common Stock
but because it is the manager of SSH Bienvenu Management may be deemed to be a
beneficial owner of the shares of Common Stock.
Empire Capital does not directly own any shares of Common Stock but
because its interest in Broken Arrow represents a majority ownership interest in
the fund and because the shares of Common Stock represent nearly all of the
assets of Broken Arrow Empire Capital may be deemed to be a beneficial owner of
the shares of Common Stock.
Empire Capital Management, an affiliate of Empire GP, the general
partner of Empire Capital, acquired shares of the Common Stock, on behalf of
Charter Oak, for the purpose of obtaining an equity position in the Issuer.
Empire Capital Management considered the Common Stock to be an attractive
investment at the price levels at which it acquired the Common Stock. While it
is not restricted from doing so in the future, it is not anticipated that Empire
Capital Management, on behalf of Charter Oak, will acquire any additional shares
of Common Stock. Pursuant to its discretionary investment management agreement
with Charter Oak, Empire Capital Management is responsible for the voting of
proxies solicited with respect to the Common Stock and for determining whether
to acquire or dispose of shares of Common Stock. In that regard, Empire Capital
Management may vote such proxies in a manner consistent with the voting of such
proxies by SSH, on behalf of Broken Arrow, and may acquire or dispose of shares
of Common Stock in such amounts and at such times as may assist SSH in
effectuating the investment program of Broken Arrow, subject, in each case, to
the determination by Empire Capital Management that such actions are consistent
with its obligations under the discretionary investment management agreement.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) and (b)
Broken Arrow beneficially owns, as of the date hereof, 1,675,500 shares
of Common Stock, representing 4.85% of the outstanding shares of Common Stock.
Broken Arrow and SSH have the sole power to vote and dispose of the Common Stock
beneficially owned by them.
In its capacity as the general partner of Broken Arrow, SSH has the
power to determine how to vote and whether or not to dispose of any shares of
Common Stock owned by Broken Arrow. Consequently, SSH has the power to vote or
direct the vote and the power to dispose or direct the disposition of 1,675,500
shares of Common Stock, representing 4.85% of the outstanding shares of Common
Stock. Bienvenu Management does not directly own any shares of Common Stock, but
as the manager of SSH, it may be deemed to be a beneficial owner of 1,675,500
shares of Common Stock representing 4.85% of the outstanding shares of Common
Stock. Messrs. Bienvenu and Dennedy, as the sole members of Bienvenu Management,
direct the operations of Bienvenu Management. Neither Mr. Bienvenu nor Mr.
Dennedy directly owns any shares of Common Stock. By reason of the provisions of
Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "1934 Act"),
each may be deemed to beneficially own the shares deemed beneficially owned by
Bienvenu Management.
Empire Capital does not directly own any shares of Common Stock but
because its interest in Broken Arrow represents a majority ownership interest in
Broken Arrow and because the shares of Common Stock represent nearly all of the
assets of Broken Arrow, Empire Capital may be deemed to be a beneficial owner of
1,675,500 shares of Common Stock representing 4.85% of the outstanding shares of
Common Stock. Empire GP, as the general partner of Empire Capital, may be deemed
to be the beneficial owner of 1,675,500 shares of Common Stock representing
4.85% of the outstanding shares of Common Stock. Furthermore, Empire GP, as an
affiliate of Empire Capital Management, may be deemed to be the beneficial owner
of an additional 906,900 shares of Common Stock representing 2.6% of the
outstanding shares of Common Stock, as described below. Messrs. Fine and
Richards, as the sole members of Empire GP, direct the operations of Empire GP.
Neither Mr. Fine nor Mr. Richards directly owns any shares of Common Stock. By
reason of the provisions of Rule 13d-3 of the 1934 Act, each may be deemed to
beneficially own the shares deemed beneficially owned by Empire Capital and
Empire GP.
Charter Oak beneficially owns, as of the date hereof, 906,900 shares of
Common Stock representing 2.6% of the outstanding shares of Common Stock.
Pursuant to its discretionary investment management agreement with Charter Oak,
Empire Capital Management has the power to determine how to vote any shares of
Common Stock that it has acquired on behalf of Charter Oak, unless otherwise
instructed by Charter Oak. Empire Capital Management has the sole authority to
determine whether to dispose of any shares of Common Stock that it has acquired
on behalf of Charter Oak. Consequently, Empire Capital Management has the power
to vote or direct the vote and the power to dispose or direct the disposition of
906,900 shares of Common Stock, representing 2.6% of the outstanding shares of
Common Stock. Furthermore, Empire Capital Management, as an affiliate of Empire
GP, may be deemed to be the beneficial owner of an additional 1,675,500 shares
of Common Stock representing 4.85% of the outstanding shares of Common Stock.
Messrs. Fine and Richards, as the managing members of Empire Capital Management,
direct the operations of Empire Capital Management. By reason of the provisions
of Rule 13d-3 of the 1934 Act, each may be deemed to beneficially own the shares
deemed beneficially owned by Empire Capital Management.
To the best knowledge of the Reporting Persons, none of the other
persons or entities listed in Item 2 beneficially owns any other shares of the
Issuer.
(c) The following transactions in the Issuer's Common Stock were
effected by the Reporting Persons since the date of the their most recent filing
on Schedule 13D. All of such transactions represent open market transactions.
Reporting Person Buy/Sell Trade Date Shares Price/Share ($)
---------------- -------- ---------- ------ ---------------
Broken Arrow I Buy 12/13/02 25,000 0.9600
Broken Arrow I Buy 12/13/02 7,800 0.9800
Broken Arrow I Buy 12/13/02 5,000 0.9890
Broken Arrow I Buy 12/13/02 12,200 0.9900
Broken Arrow I Buy 12/23/02 30,000 0.9000
Charter Oak Buy 12/31/02 9,800 0.9559
Charter Oak Sell 01/10/03 9,800 1.3302
Charter Oak Sell 01/22/03 5,000 1.7500
Charter Oak Sell 01/23/03 39,400 1.8709
Broken Arrow I Sell 01/23/03 10,000 1.9025
Broken Arrow I Sell 01/23/03 15,000 1.9000
Broken Arrow I Sell 01/24/03 3,200 1.8100
Charter Oak Sell 01/24/03 9,700 1.9144
Broken Arrow I Sell 01/24/03 3,700 1.8329
Broken Arrow I Sell 01/24/03 6,300 1.8103
Broken Arrow I Sell 01/24/03 10,000 1.8192
Broken Arrow I Sell 01/24/03 10,000 1.8760
Broken Arrow I Sell 01/24/03 10,000 1.8580
Broken Arrow I Sell 01/24/03 15,000 1.8500
Broken Arrow I Sell 01/24/03 20,900 1.8200
Broken Arrow I Sell 01/24/03 20,900 1.8300
Charter Oak Sell 01/28/03 39,000 1.9000
Broken Arrow I Sell 01/28/03 7,500 1.9000
Broken Arrow I Sell 01/29/03 5,000 1.8500
Broken Arrow I Sell 01/30/03 3,000 1.7200
Broken Arrow I Sell 01/30/03 10,000 1.7300
Broken Arrow I Sell 01/30/03 17,000 1.7100
Broken Arrow I Sell 01/30/03 80,000 1.7000
Broken Arrow I Sell 01/31/03 200 1.5700
Broken Arrow I Sell 01/31/03 1,100 1.5900
Broken Arrow I Sell 01/31/03 2,300 1.5600
Broken Arrow I Sell 01/31/03 4,100 1.6100
Broken Arrow I Sell 01/31/03 4,200 1.6500
Broken Arrow I Sell 01/31/03 5,000 1.6600
Broken Arrow I Sell 01/31/03 5,000 1.6554
Broken Arrow I Sell 01/31/03 5,100 1.5800
Broken Arrow I Sell 01/31/03 5,400 1.6000
Broken Arrow I Sell 01/31/03 7,500 1.6200
Broken Arrow I Sell 01/31/03 16,300 1.6300
Broken Arrow I Sell 01/31/03 26,300 1.5500
Broken Arrow I Sell 02/03/03 40,000 1.7300
Broken Arrow I Sell 02/03/03 34,500 1.68/1.69
(d) Not applicable.
(e) On January 31, 2003, each of Broken Arrow, SSH, Bienvenu
Management, Rodney Bienvenu and James Dennedy ceased to be the beneficial owner
of more than 5% of the Issuer's Common Stock.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Other than the Joint Acquisition Statement which was attached as
Exhibit A to the Reporting Persons' original Schedule 13D filed on November 29,
2002, none of the Reporting Persons nor any general partners, managers or
executive officers of the Reporting Persons has any contracts, arrangements,
understandings or relationships (legal or otherwise) with any person with
respect to the Common Stock, including transfer or voting thereof, finder's
fees, joint ventures, loan or option arrangements, puts or calls, guarantees of
profits, division of profits or loss, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
None.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: February 3, 2003
By: /s/ Rodney Bienvenu
------------------------------------------
Rodney Bienvenu, individually, and as
Chairman & CEO of Strategic Software
Holdings, LLC, for itself and as general
partner of Broken Arrow I., L.P., and as
a member of Bienvenu Management, LLC
By: /s/ James Dennedy
------------------------------------------
James Dennedy, individually, and as a
member of Bienvenu Management, LLC
By: /s/ Scott A. Fine
------------------------------------------
Scott A. Fine, individually, and as
managing member of Empire GP, L.L.C.,
and as general partner of Empire Capital
Partners, L.P.; and as managing member
of Empire Capital Management, L.L.C.,
and as attorney-in-fact of Charter Oak
Partners, L.P.
By: /s/ Peter J. Richards
------------------------------------------
Peter J. Richards, individually, and as
managing member of Empire GP, L.L.C.,
and as general partner of Empire Capital
Partners, L.P.; and as managing member
of Empire Capital Management, L.L.C.,
and as attorney-in-fact of Charter Oak
Partners, L.P.