SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
RATEXCHANGE CORPORATION
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
754091106
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(CUSIP Number)
Albert L. Weiss
Forsythe Technology, Inc.
5510 West Howard Street
Skokie, Illinois 60077
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 20, 2002
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(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 schedule because of Rule 13d-1(b)(3) or (4), check the following
box: [ ]
*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 disclosures provided in a prior cover page.
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).
CUSIP No.: 754091106
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1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Forsythe/McArthur Associates, Inc.
FEIN: 36-2734737
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(1)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(1)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(2)
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14 TYPE OF REPORTING PERSON
CO
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1. Includes 4,419,324 shares of common stock of the Company (the "Common Stock")
and warrants to purchase 987,833 shares of Common Stock.
2. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
CUSIP No.: 754091106
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1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Forsythe Technology Management Co.
FEIN: 75-3095848
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(3)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(3)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(3)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(4)
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14 TYPE OF REPORTING PERSON
CO
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3. Includes 4,419,324 shares of common stock of the Company (the "Common Stock")
and warrants to purchase 987,833 shares of Common Stock.
4. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
CUSIP No.: 754091106
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1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Forsythe Technology, Inc.
FEIN: 36-4112413
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(5)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(5)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(5)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(6)
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14 TYPE OF REPORTING PERSON
CO
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5. Includes 4,419,324 shares of common stock of the Company (the "Common Stock")
and warrants to purchase 987,833 shares of Common Stock.
6. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
CUSIP No.: 754091106
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1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Richard A. Forsythe Revocable Trust
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(7)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(7)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(7)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(8)
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14 TYPE OF REPORTING PERSON
OO
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----------
7. Includes 4,419,324 shares of common stock of the Company (the "Common Stock")
and warrants to purchase 987,833 shares of Common Stock.
8. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
CUSIP No.: 754091106
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Forsythe Technology Investors Limited Partnership
FEIN: 36-4336557
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(9)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(9)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(9)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(10)
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14 TYPE OF REPORTING PERSON
PN
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9. Includes 4,419,324 shares of common stock of the Company (the "Common Stock")
and warrants to purchase 987,833 shares of Common Stock.
10. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
CUSIP No.: 754091106
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1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Middleton Gardens LIMITED PARTNERSHIP
FEIN: 88-0413806
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
[ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(11)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(11)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(11)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(12)
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14 TYPE OF REPORTING PERSON
PN
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11. Includes 4,419,324 shares of common stock of the Company (the "Common
Stock") and warrants to purchase 987,833 shares of Common Stock.
12. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
CUSIP No.: 754091106
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Forsythe Technology, Inc. Employees' Stock Ownership Trust
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
[ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(13)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(13)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(13)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(14)
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14 TYPE OF REPORTING PERSON
OO
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----------
13. Includes 4,419,324 shares of common stock of the Company (the "Common
Stock") and warrants to purchase 987,833 shares of Common Stock.
14. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
CUSIP No.: 754091106
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Richard A. Forsythe
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
[ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
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7 SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 5,407,157(15)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH -0-
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,157(15)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,407,157(15)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.9%(16)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
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15. Includes 4,419,324 shares of common stock of the Company (the "Common
Stock") and warrants to purchase 987,833 shares of Common Stock.
16. Based on 27,181,174 shares of Common Stock outstanding, which includes
26,193,341 shares outstanding as of April 30, 2003 as reported in the Company's
most recent Form 10-Q and warrants to purchase 987,833 shares of Common Stock.
ITEM 1. SECURITY AND ISSUER.
This Schedule 13D relates to the common stock, $0.0001 par value per
share (the "Common Stock") of RateXchange Corporation, a Delaware corporation
(the "Company"). The principal executive offices of the Company are located at
601 Montgomery Street, 18th Floor, San Francisco, CA 94111.
ITEM 2. IDENTITY AND BACKGROUND.
(a) This statement is filed by (i) Forsythe/McArthur Associates, Inc.,
an Illinois corporation ("Forsythe/McArthur"), with respect to shares of Common
Stock beneficially owned by it, (ii) Forsythe Technology Management Co., an
Illinois corporation ("Forsythe Management"), with respect to shares of Common
Stock which may be deemed to be beneficially owned by it, (iii) Forsythe
Technology, Inc., an Illinois corporation ("Forsythe Technology"), with respect
to shares of Common Stock which may be deemed to be beneficially owned by it,
(iv) the Richard A. Forsythe Revocable Trust ("Forsythe Trust") with respect to
shares of Common Stock which may be deemed to be beneficially owned by it, (v)
Forsythe Technology Investors Limited Partnership, a Delaware limited
partnership ("Forsythe Investors") with respect to shares of Common Stock which
may be deemed to be beneficially owned by it, (vi) Middleton Gardens LIMITED
PARTNERSHIP, a Delaware limited partnership ("Middleton") with respect to shares
of Common Stock which may be deemed to be beneficially owned by it, (vii)
Forsythe Technology, Inc. Employees' Stock Ownership Trust (the "ESOP") with
respect to shares of Common Stock which may be deemed to be beneficially owned
by it and (viii) Richard A. Forsythe ("Mr. Forsythe"), with respect to shares of
Common Stock which may be deemed to be beneficially owned by him.
(b) The address of each of Forsythe/McArthur, Forsythe Management,
Forsythe Technology, Forsythe Trust, Forsythe Investors, Middleton, the ESOP and
Mr. Forsythe is 5510 West Howard Street, Skokie, Illinois 60077.
(c) Forsythe/McArthur's primary business is to lease computing
equipment. Forsythe Management's primary business is to manage the leasing
businesses of its subsidiaries, including Forsythe/McArthur. Forsythe
Technology's primary business is to serve as a holding company for its
subsidiaries. Forsythe Trust's primary business is to hold shares of Forsythe
Technology. Forsythe Investors' primary business is to hold shares of Forsythe
Technology. Middleton's primary business is to hold shares of Forsythe
Technology. The ESOP's primary business is to hold shares of Forsythe
Technology. Mr. Forsythe's primary business is to serve as the President and
Chairman of Forsythe Technology.
(d) None of Forsythe/McArthur, Forsythe Management, Forsythe
Technology, Forsythe Trust, Forsythe Investors, Middleton, the ESOP or Mr.
Forsythe has, during the last five years, been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors).
(e) None of Forsythe/McArthur, Forsythe Management, Forsythe
Technology, Forsythe Trust, Forsythe Investors, Middleton, the ESOP or Mr.
Forsythe has, during the last five years, been a party to a civil proceeding of
a judicial or administrative body of competent jurisdiction and as a result of
such proceeding was or is subject to 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 violation with respect to such laws.
(f) Forsythe/McArthur is an Illinois corporation. Forsythe Management
is an Illinois corporation. Forsythe Technology is an Illinois corporation.
Forsythe Trust is an unincorporated
revocable trust. Forsythe Investors is a Delaware limited partnership. Middleton
is a Delaware limited partnership. The ESOP is an unincorporated employee stock
ownership plan and trust. Mr. Forsythe is a United States citizen.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATIONS.
On June 15, 2001, the Company and Forsythe/McArthur entered into a
Lease Payment Restructure Agreement attached hereto as Exhibit 99-1 (the "2001
Restructuring Agreement") with respect to a prior equipment lease of delivery
hub equipment. The 2001 Restructuring Agreement required the Company to make
twelve monthly payments of $74,056 beginning on May 1, 2001, increasing to
$148,113 beginning on May 1, 2002 with a final payment of $4,184,544 on May 1,
2003. Under the 2001 Restructuring Agreement, the Company agreed to issue
Forsythe/McArthur (i) a warrant to purchase 233,500 shares of Common Stock on
June 1, 2001 (ii) a warrant to purchase 116,750 shares of Common Stock on
November 30, 2001 and (iii) a warrant to purchase 116,750 shares on June 1,
2002, in each case with an exercise price equal to the average closing price for
the 30 trading days preceding the issuance of the warrant; provided, however,
that the exercise price for the warrant to be issued on November 30, 2001 could
not have an exercise price in excess of $2.00 per share and the warrant to be
issued on June 1, 2002 could not have an exercise price in excess of $2.50 per
share. In order to fulfill its obligations to issue warrants under the 2001
Restructuring Agreement, the Company issued Forsythe/McArthur (i) a warrant to
purchase 233,500 shares of Common Stock at $1.25 per share, (ii) a warrant to
purchase 116,750 shares of Common Stock at $0.375 per share and (iii) a warrant
to purchase 116,750 shares of Common Stock at $0.40 per share.
On October 4, 2001, the Company and Forsythe/McArthur entered into a
modification to the 2001 Restructuring Agreement attached hereto as Exhibit 99-2
(the "2001 Modification"). Pursuant to the 2001 Modification, Forsythe/McArthur
allowed the Company to withhold scheduled payments through December 31, 2001,
subject to a proposed further restructuring of the lease. In consideration for
the 2001 Modification, the Company agreed to issue Forsythe/McArthur a warrant
to purchase 520,833 shares of Common Stock at $0.48 per share.
In November 2001, Forsythe/McArthur agreed to forego all amounts owed
by the Company under the lease obligation in exchange for a Convertible Note
(which was previously filed with the SEC on March 28, 2002 as Exhibit 10.33 to
the Company's form 10-K for the year ended December 31, 2001, and which is
incorporated by reference into this filing) with an initial principal amount of
$5,949,042 (the "Note").
Under the terms of the Note, during 2002 the Company issued
Forsythe/McArthur shares of Common Stock in order to pay interest expense on the
Note as set forth in the chart below:
Date of Issuance Number of Shares
------------------------- ------------------
March 28, 2002 788,699
June 28, 2002 299,401
September 27, 2002 375,940
December 30, 2002 455,284
On November 20, 2002, the Company and Forsythe/McArthur entered into an
Agreement to Restructure (which was previously filed with the SEC on March 31,
2003, as Exhibit 10.38 to the Company's form 10-K for the year ended December
31, 2002 and which is incorporated by reference into this filing) (the "2002
Restructuring Agreement") to restructure the obligations of the Company to
2
Forsythe/McArthur. In exchange for 500,000 shares of Common Stock, the Company
purchased a call option from Forsythe/McArthur which would give the Company the
right to cancel the Note in exchange for: (i) $500,000 in cash; (ii) 2,000,000
shares of Common Stock; and (iii) a new $1,000,000 promissory note bearing
interest at 3.5% per annum payable quarterly in cash, and maturing on December
31, 2005. On April 3, 2003, the Company exercised its right to cancel the Note
held by Forsythe/McArthur as provided in the 2002 Restructuring Agreement.
Each warrant that was issued by the Company granted Forsythe/McArthur
"piggy-back" registration rights with respect to the shares of Common Stock
issuable upon exercise of such warrant.
As a result of these transactions, Forsythe/McArthur owns 4,419,324
shares of Common Stock and warrants to purchase 987,833 shares of Common Stock.
ITEM 4. PURPOSE OF TRANSACTION.
As described in Item 3 above, Forsythe/McArthur acquired the shares of
Common Stock and the warrants to purchase Common Stock in order to restructure
the Company's existing obligations to it. Depending upon market conditions and
Forsythe/McArthur's evaluation of the business and prospects of the Company,
Forsythe/McArthur may seek to dispose of or acquire additional securities of the
Company. Except as described herein, none of Forsythe/McArthur, Forsythe
Management, Forsythe Technology, Forsythe Trust, Forsythe Investors, Middleton,
the ESOP and Mr. Forsythe has any present plans or proposals which relate to or
would result in:
(a) The acquisition by any person of additional securities of the
Company, or the disposition of such securities, except that he may acquire
additional securities or dispose of securities of the Company depending upon the
then current business conditions of the Company and the economy in general;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of its subsidiaries;
(c) A sale or transfer of a material amount of assets of the Company or
any of its subsidiaries;
(d) Any change in the current board of directors and management of the
Company, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board;
(e) Any material change in the current capitalization or dividend
policy of the Company;
(f) Any material change in the Company's business or corporate
structure;
(g) Changes in the Company's charter, bylaws or instruments
corresponding thereto or other actions, which may impede the acquisition of
control of the Company by any person;
(h) Causing a class of securities of the Company to be delisted from a
national securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation system of a registered national securities association;
3
(i) A class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12 (g) (4) of the Securities
Exchange Act of 1934; or
(j) Any action similar to those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) As a result of the transactions described in Item 3 above,
Forsythe/McArthur beneficially owns 4,419,324 shares of Common Stock and
warrants to purchase 987,833 shares of Common Stock. In its capacity as the sole
shareholder of Forsythe/McArthur, Forsythe Management may be deemed to
beneficially own 4,419,324 shares of Common Stock and warrants to purchase
987,833 shares of Common Stock. In its capacity as the sole shareholder of
Forsythe Management, Forsythe Technology may be deemed to beneficially own
4,419,324 shares of Common Stock and warrants to purchase 987,833 shares of
Common Stock. In its capacity as a controlling shareholder in Forsythe
Technology, Forsythe Trust may be deemed to beneficially own 4,419,324 shares of
Common Stock and warrants to purchase 987,833 shares of Common Stock. In its
capacity as a shareholder of Forsythe Technology, Forsythe Investors may be
deemed to beneficially own 4,419,324 shares of Common Stock and warrants to
purchase 987,833 shares of Common Stock. In its capacity as a shareholder of
Forsythe Technology, Middleton may be deemed to beneficially own 4,419,324
shares of Common Stock and warrants to purchase 987,833 shares of Common Stock.
In its capacity as a shareholder of Forsythe Technology, the ESOP may be deemed
to beneficially own 4,419,324 shares of Common Stock and warrants to purchase
987,833 shares of Common Stock. In his capacity as (i) the trustee of the
Forsythe Trust, (ii) the sole general partner of Forsythe Investors, (iii) the
husband of the sole stockholder of Colleton River Holdings, Inc., which is the
sole general partner of Middleton, and (iv) a trustee of the ESOP, Mr. Forsythe
may be deemed to beneficially own 4,419,324 shares of Common Stock and warrants
to purchase 987,833 shares of Common Stock.
(b) Forsythe/McArthur, Forsythe Management, Forsythe Technology,
Forsythe Trust, Forsythe Investors, Middleton, the ESOP and Mr. Forsythe may be
deemed to have shared voting power and disposition power with respect to the
shares of Common Stock and the warrants to purchase Common Stock owned of record
by Forsythe/McArthur.
(c) Other than as described in Item 3, none of Forsythe/McArthur,
Forsythe Management, Forsythe Technology, Forsythe Trust, Forsythe Investors,
Middleton, the ESOP or Mr. Forsythe has engaged in any transactions in the
Common Stock within the past 60 days.
(d) Other than Forsythe/McArthur, Forsythe Management, Forsythe
Technology, Forsythe Trust, Forsythe Investors and its partners, Middleton and
its partners, the ESOP and its members, Mr. Forsythe and the other
non-controlling shareholders of Forsythe Technology, no other person has the
right to receive or the power to direct the receipt of dividends from, or the
proceeds from the sale of, the shares of the securities disclosed in Item 5(a).
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
Forsythe Management owns all of the issued and outstanding capital
stock of Forsythe/McArthur. Forsythe Technology owns all of the issued and
outstanding capital stock of
4
Forsythe Management. Forsythe Trust, Forsythe Investors, Middleton and the ESOP
are each shareholders of Forsythe Technology. Mr. Forsythe is the trustee of the
Forsythe Trust and is the general partner of Forsythe Investors and is the
husband of the sole stockholder of Colleton River Holdings, Inc., which is the
sole general partner of Middleton and is a trustee of the ESOP.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 99.1 Lease Payment Restructuring Agreement dated June 15,
2001 by and between Forsythe/McArthur Associates,
Inc., and RateXchange Corporation
Exhibit 99.2 Letter Agreement dated October 4, 2001 by and between
Forsythe/McArthur Associates, Inc., and RateXchange
Corporation
5
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: July 9, 2003
FORSYTHE/MCARTHUR ASSOCIATES, INC.,
an Illinois corporation
By: /s/ ALBERT WEISS
---------------------------------------
Name: Albert Weiss
Title: President
FORSYTHE TECHNOLOGY MANAGEMENT CO.,
an Illinois corporation
By: /s/ ALBERT WEISS
---------------------------------------
Name: Albert Weiss
Title: Senior Vice President
FORSYTHE TECHNOLOGY, INC.,
an Illinois corporation
By: /s/ ALBERT WEISS
---------------------------------------
Name: Albert Weiss
Title: Senior Vice President
RICHARD A. FORSYTHE REVOCABLE TRUST
By: /s/ RICHARD A. FORSYTHE
---------------------------------------
Name: Richard A. Forsythe
Title: Trustee
FORSYTHE TECHNOLOGY INVESTORS LIMITED
PARTNERSHIP, a Delaware limited partnership
By: /s/ RICHARD A. FORSYTHE
---------------------------------------
Name: Richard A. Forsythe
Title: General Partner
MIDDLETON GARDENS LIMITED PARTNERSHIP,
a Delaware limited partnership
By: Colleton River Holdings, Inc.,
its general partner
By: /s/ SANDRA C. FORSYTHE
---------------------------------
Name: Sandra C. Forsythe
Title: Chairman
FORSYTHE TECHNOLOGY, INC. EMPLOYEES'
STOCK OWNERSHIP TRUST
By: /s/ RICHARD A. FORSYTHE
---------------------------------------
Name: Richard A. Forsythe
Title: Trustee
/s/ RICHARD A. FORSYTHE
------------------------------------------
Richard A. Forsythe
EXHIBIT INDEX
Exhibit No. Document
Exhibit 99.1 Lease Payment Restructuring Agreement dated June 15,
2001 by and between Forsythe/McArthur Associates,
Inc., and RateXchange Corporation
Exhibit 99.2 Letter Agreement dated October 4, 2001 by and between
Forsythe/McArthur Associates, Inc., and RateXchange
Corporation