0000930661-95-000298.txt : 19950824 0000930661-95-000298.hdr.sgml : 19950824 ACCESSION NUMBER: 0000930661-95-000298 CONFORMED SUBMISSION TYPE: S-3 PUBLIC DOCUMENT COUNT: 6 FILED AS OF DATE: 19950823 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING SOFTWARE INC CENTRAL INDEX KEY: 0000716714 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 751873956 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: S-3 SEC ACT: 1933 Act SEC FILE NUMBER: 033-62057 FILM NUMBER: 95566282 BUSINESS ADDRESS: STREET 1: 8080 N CENTRAL EXPWY STE 1100 CITY: DALLAS STATE: TX ZIP: 75206 BUSINESS PHONE: 2148918600 S-3 1 FORM S-3 As filed with the Securities and Exchange Commission on August 23, 1995. Registration No.33- ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________ FORM S-3 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ___________ STERLING SOFTWARE, INC. (Exact name of registrant as specified in its charter) DELEWARE 75-1873956 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 8080 North Central Expressway Suite 1100 Dallas, Texas 75206 (214) 891-8600 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) ___________ JEANNETTE P. MEIER, ESQ. With a copy to: Executive Vice President, CHARLES D. MAGUIRE, JR., ESQ. Secretary and General Counsel Jackson & Walker, L.L.P. Sterling Software, Inc. 901 Main Street 8080 North Central Expressway Suite 6000 Suite 1100 Dallas, Texas 75202 Dallas, Texas 75206 (214) 953-5850 (214) 891-8685 (Name, address, including zip code, and telephone number, including area code, of agent for service) ___________ Approximate date of commencement of proposed sale to the public: From time to time after the effective date of this Registration Statement. If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. [_] If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. [X] If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [_] If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [_] If delivery of the prospectus is expected to be made pursuant to Rule 434, please check the following box. [_]
CALCULATION OF REGISTRATION FEE ============================================================================================================ Title of Each Class Amount Proposed Maximum Proposed Maximum of Securities to to be Offering Price Aggregate Amount of be Registered Registered Per Unit(1) Offering Price(1) Registration Fee ============================================================================================================ Common Stock, par value $.10 per share 350,000 shares $ 45.8750 $ 16,056,250.00 $ 5,536.64 ============================================================================================================
(1) Estimated solely for the purpose of calculating the registration fee. Pursuant to Rule 457(c), the offering price and registration fee are computed on the basis of the average of the high and low prices of the Common Stock as reported by the New York Stock Exchange on August 17, 1995. ___________ The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to Section 8(a), may determine. Pursuant to Rule 429, this Registration Statement contains a combined prospectus relating to this Registration Statement and Registration Statement No. 33-56683. 66 PROSPECTUS 350,000 Shares STERLING SOFTWARE, INC. Common Stock This Prospectus relates to the offer and sale by Sterling Software, Inc. ("Sterling" or the "Company") of up to 350,000 shares (the "Shares") of the Company's common stock, par value $0.10 per share (the "Common Stock"), issuable by the Company upon exercise of options (the "Options") granted or to be granted from time to time to eligible persons pursuant to the provisions of the Company's 1992 Non-Statutory Stock Option Plan (as amended, the "Plan"). This Prospectus also relates to the offer and sale of up to 350,000 Shares by certain stockholders (the "Selling Stockholders") who will acquire such Shares upon the exercise of Options. The Shares may be sold from time to time by the Selling Stockholders, or by permitted transferees. Such sales may be made on one or more exchanges, including the New York Stock Exchange (the "NYSE"), or in the over the counter market, or in negotiated transactions, in each case at prices and at terms then prevailing or at prices related to the then current market price or at negotiated prices and terms. Upon any sale of the Shares offered hereby, Selling Stockholders or permitted transferees and participating agents, brokers or dealers may be deemed to be underwriters as that term is defined in the Securities Act of 1933, as amended (the "Securities Act"), and commissions or discounts or any profit realized on the resale of such securities may be deemed to be underwriting commissions or discounts under the Securities Act. See "Plan of Distribution." The Common Stock is listed for trading on the NYSE under the symbol "SSW." On August 22, 1995, the closing price of the Common Stock on the NYSE was $46.50. The Company will pay all expenses in connection with this offering, which are estimated to be approximately $22,544.64. ________________ THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. ________________ The date of this Prospectus is August 23, 1995. AVAILABLE INFORMATION The Company is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance therewith, files reports, proxy statements and other information with the Securities and Exchange Commission (the "Commission"). Such reports, proxy statements and other information can be inspected and copied at the public reference facilities maintained by the Commission at Judiciary Plaza, 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549, and at the regional offices of the Commission at Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-2511, and at 7 World Trade Center, Suite 1300, New York, New York 10048. Copies of such materials can also be obtained from the Public Reference Section of the Commission at 450 Fifth Street, N.W., Washington, D.C., 20549, at prescribed rates. The Common Stock is listed on the NYSE. Reports, proxy statements and other information concerning the Company can also be inspected at the offices of the NYSE at 20 Broad Street, New York, New York 10005. The Company has filed with the Commission a Registration Statement on Form S-3 (together with all amendments and exhibits thereto, the "Registration Statement") under the Securities Act with respect to the offer and sale of the Common Stock to be issued pursuant to the Plan. As permitted by the rules and regulations of the Commission, this Prospectus omits certain of the information contained in the Registration Statement. Copies of the Registration Statement are available from the Public Reference Section of the Commission at prescribed rates. Statements contained herein concerning the provisions of documents filed with the Registration Statement are necessarily summaries of such documents, and each such statement is qualified in its entirety by reference to the copy of the applicable document filed with the Commission. The Company's principal executive offices are located at 8080 N. Central Expressway, Suite 1100, Dallas, Texas 75206, and the Company's telephone number at such address is (214) 891-8600. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE The following documents, which have been filed with the Commission by the Company, are incorporated herein by reference and made a part hereof: (i) Annual Report on Form 10-K (File No. 1-8465) for the year ended September 30, 1994, as amended by Form 10-K/A Amendment No. 1; (ii) Quarterly Report on Form 10-Q for the quarter ended December 31, 1994; (iii) Quarterly Report on Form 10-Q for the quarter ended March 31, 1995; - 2 - (iv) Quarterly Report on Form 10-Q/A for the quarter ended March 31, 1995; (v) Quarterly Report on Form 10-Q for the quarter ended June 30, 1995; (vi) Current Report on Form 8-K (File No. 1-8465) dated November 3, 1994; (vii) Current Report on Form 8-K (File No. 1-8465) dated November 14, 1994; (viii) Current Report on Form 8-K (File No. 1-8465) dated November 30, 1994; (ix) Current Report on Form 8-K (File No. 1-8465) dated February 28, 1995; and (x) the description of the Company's Common Stock contained in the Company's Registration Statement on Form 8-A (No. 0-108465), filed March 7, 1990. All documents filed by the Company pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act subsequent to the date of this Prospectus and prior to the termination of the offering of Common Stock to be made hereunder shall be deemed to be incorporated herein by reference and made a part hereof from the date of filing of such documents. Any statement contained herein or in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for all purposes of this Prospectus to the extent that a statement contained herein or therein or in any other subsequently filed document that also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Prospectus. The Company will provide, without charge, to each person to whom a copy of this Prospectus is delivered, upon the written or oral request of such person, a copy of any or all of the documents incorporated herein by reference (other than exhibits to such documents, unless such exhibits are specifically incorporated by reference into the information that this Prospectus incorporates). Written or telephonic requests for copies should be directed to the Company's principal office: Sterling Software, Inc., 8080 N. Central Expressway, Suite 1100, Dallas, Texas 75206, Attention: Jeannette P. Meier, Executive Vice President, Secretary and General Counsel (telephone: (214) 891- 8600). USE OF PROCEEDS The proceeds derived from this sale of Common Stock offered hereby shall constitute general funds of the Company. - 3 - SELLING STOCKHOLDERS This Prospectus covers the purchase from the Company of up to 350,000 Shares in the aggregate, by the holders of the Options upon the exercise thereof in accordance with their terms and the subsequent offer and resale of Shares to be acquired by certain holders of Options upon the exercise thereof. The Board of Directors of the Company (the "Board") or a Stock Option Committee appointed by the Board, subject to the provisions of the Plan, will determine from time to time (i) the individuals, from among the Company's full time employees and key advisors, including directors, to whom Options will be granted, (ii) the number of shares of Common Stock to be covered by each Option and (iii) the purchase price of Common Stock subject to each Option, which may be equal to, less than or greater than the fair market value of the Common Stock on the date of grant. Unless sooner terminated by action of the Board, the Plan will terminate on March 31, 2002, and no Options may be granted pursuant to the Plan after such date. The table below sets forth information concerning the Common Stock owned by the following Selling Stockholders, none of whom has, or within the past three years has had, any position, office or other material relationship with the Company, except as noted herein:
COMMON STOCK OFFERED FOR OWNERSHIP OF SELLING AMOUNT AND COMMON STOCK STOCKHOLDERS' PERCENTAGE PRIOR TO ACCOUNT UPON OF CLASS AFTER NAME OFFERING (1) EXERCISE OFFERING (2) ---- ------------ -------- ------------ Richard Connelly 18,844 (3) 1,844 17,000 (3)(*) Robert E. Cook 39,209 (4) 30,000 9,209 (4)(*) Greenbriar Limited 500,000 500,000 -0- (*) Michael C. French 95,800 (5) 30,000 65,800 (5)(*) Albert K. Hoover 20,340 (6) 12,540 7,800 (6)(*) James E. Jenkins, Jr. 19,495 (7) 6,969 12,526 (7)(*) Jeannette P. Meier 183,225 (8) 24,400 158,825 (8)(*) Donald R. Miller, Jr. 70,000 (9) 40,000 30,000 (9)(*) Quayle Limited 333,000 333,000 -0- (*) Sarnia Investments 167,000 167,000 -0- (*) Limited Clive A. Smith 192,938 (10) 24,838 168,100 (10)(*) A. Maria Smith 225,000 (11) 60,000 165,000 (11)(*)
- 4 -
COMMON STOCK OFFERED FOR OWNERSHIP OF SELLING AMOUNT AND COMMON STOCK STOCKHOLDERS' PERCENTAGE PRIOR TO ACCOUNT UPON OF CLASS AFTER NAME OFFERING (1) EXERCISE OFFERING (2) ---- ------------ -------- ------------ Geno P. Tolari 195,313 (12) 100,000 95,313 (12)(*) Anne Vahala 53,438 (13) 12,438 41,000 (13)(*) Sterling L. Williams 1,154,000 (14) 625,000 529,000 (14) (4.368%) Charles J. Wyly, Jr. 1,548,273 (15) 150,000 1,398,273 (15) (4.997%) Evan A. Wyly 186,440 (16) 60,000 126,440 (16)(*) Sam Wyly 1,896,965 (17) 700,000 1,196,965 (17) (7.194%)
_____________ * Indicates shares held are less than 1% of class. (1) Based on ownership as of August 21, 1995. Includes Shares to be acquired upon exercise of Options granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (2) Based on 25,265,705 shares of Common Stock outstanding as of August 21, 1995. Assumes the exercise of all Options granted under the Plan, the exercise of which is covered by this Prospectus, and the sale of the Shares acquired thereby. (3) Includes 17,000 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (4) Includes 2,709 shares purchasable pursuant to options not granted under the Plan, all of which are exercisable within 60 days of the date of this Prospectus. (5) Includes 65,000 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (6) Includes 7,800 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (7) Includes 12,526 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (8) Includes 154,050 shares purchasable pursuant options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (9) Includes 30,000 shares purchasable pursuant options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (10) Includes 168,100 shares purchasable pursuant options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (11) Includes 165,000 shares purchasable pursuant options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (12) Includes 95,313 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (13) Includes 41,000 shares purchasable pursuant to options not granted under the Plan, none of which are exercisable within 60 days of the date of this Prospectus. - 5 - (14) Includes 529,000 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. (15) Includes 307,016 shares directly owned by family trusts of which Charles J. Wyly, Jr. is trustee. Also includes 556,574 shares held of record by two limited partnerships of which Charles J. Wyly, Jr. is general partner. Also includes 400,000 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. Also includes 134,683 shares purchasable pursuant to warrants owned by family trusts of which Charles J. Wyly, Jr., is trustee, all of which are exercisable within 60 days of the date of this Prospectus. (16) Includes 40,000 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. Also includes 33,686 shares purchasable pursuant to warrants that are fully exercisable within 60 days of the date of this Prospectus. (17) Includes 257,342 shares directly owned by family trusts of which Sam Wyly is trustee. Also includes 438,612 shares held of record by two limited partnerships of which Sam Wyly is general partner. Also includes 400,000 shares purchasable pursuant to options not granted under the Plan, some of which are not exercisable within 60 days of the date of this Prospectus. Also includes 101,011 shares purchasable pursuant to warrants owned by family trusts of which Sam Wyly is trustee, all of which are exercisable within 60 days of the date of this Prospectus. Richard Connelly serves as Vice President and Controller of the Company. Robert E. Cook is a Director of the Company. George H. Ellis serves as Executive Vice President and Chief Financial Officer of the Company. Albert K. Hoover serves as Vice President, Assistant Secretary and Assistant General Counsel of the Company. James E. Jenkins, Jr. serves as Vice President, Tax, and Assistant Secretary of the Company. Jeannette P. Meier serves as Executive Vice President, Secretary and General Counsel of the Company. Donald R. Miller, Jr. serves as a Director of the Company. Geno P. Tolari serves as Executive Vice President of the Company. Anne Vahala serves as Vice President, Corporate Communications, of the Company. Sterling L. Williams serves as President, Chief Executive Officer and Director of the Company. Charles J. Wyly, Jr. serves as Vice Chairman of the Board. Sam Wyly serves as Chairman of the Board. PLAN OF DISTRIBUTION The Shares may be issued to the Selling Stockholders from time to time by the Company upon exercise of the Options. The Shares may be sold from time to time by any of the Selling Stockholders, or permitted transferees. The Shares may be disposed of from time to time in one or more transactions through any one or more of the following: (i) to purchasers directly, (ii) in ordinary brokerage transactions and transactions in which the broker solicits purchasers, (iii) through underwriters or dealers who may receive compensation in the form of underwriting discounts, concessions or commissions from the Selling Stockholders or such permitted transferees/or from the purchasers of the Shares for whom they may act as agent, (iv) the writing of options on the Shares, (v) the pledge of the Shares as security for any loan or obligation, including pledges to brokers or dealers who may, from time to time, themselves effect distributions of the Shares or interests therein, (vi) purchases by a broker or dealer as principal and resale by such broker or dealer for its own account pursuant to this Prospectus, (vii) a block trade in which the broker or dealer so engaged will attempt to sell the Shares as agent but may position and resell a portion of the block as principal to facilitate the transaction and (viii) an exchange distribution in accordance with the rules of such exchange, including the NYSE, or in transactions in the over the counter market. Such sales may be made at prices - 6 - and at terms then prevailing or at prices related to the then current market price or at negotiated prices and terms. In effecting sales, brokers or dealers may arrange for other brokers or dealers to participate. The Selling Stockholders or such successors in interest, and any underwriters, brokers, dealers or agents that participate in the distribution of the Shares, may be deemed to be "underwriters" within the meaning of the Securities Act, and any profit on the sale of the Shares by them and any discounts, commissions or concessions received by any such underwriters, brokers, dealers or agents may be deemed to be underwriting commissions or discounts under the Securities Act. The Company will pay all of the expenses incident to the offering and sale of the Shares to the public other than underwriting discounts or commissions, brokers' fees and the fees and expenses of any counsel to the Selling Stockholders related thereto. In the event of a material change in the plan of distribution disclosed in this Prospectus, the Selling Stockholders will not be able to effect transactions in the Shares pursuant to this Prospectus until such time as a post-effective amendment to the Registration Statement is filed with, and declared effective by, the Commission. LEGAL MATTERS Certain legal matters in connection with the validity of the Common Stock offered hereby have been passed upon for the Company by Jackson & Walker, L.L.P., Dallas, Texas. Michael C. French, a partner in Jackson & Walker, L.L.P., is a director of the Company. EXPERTS The consolidated financial statements and financial statement schedules appearing in Sterling's Annual Report on Form 10-K for the year ended September 30, 1994, have been audited by Ernst & Young LLP, independent auditors, as set forth in their report thereon included therein and incorporated by reference herein, which as to the year ended September 30, 1992, is based in part on the report of Arthur Andersen LLP, independent public accountants. Such consolidated financial statements are incorporated herein by reference in reliance upon such reports given upon the authority of such firms as experts in accounting and auditing. The consolidated financial statements of KnowledgeWare, Inc. and subsidiaries as of June 30, 1994 and 1993 and for each of the three years in the period ending June 30, 1994 incorporated by reference in this Prospectus have been incorporated herein in reliance on the report, which includes an explanatory paragraph about KnowledgeWare, Inc.'s ability to continue as a going concern, of Coopers & Lybrand L.L.P., independent certified public accountants, given upon authority of that firm as experts in accounting and auditing. - 7 - INDEMNIFICATION Section 145 of the Delaware General Corporation Law empowers a corporation to indemnify its directors and officers or former directors or officers and to purchase insurance with respect to liability arising out of their capacity or status as directors and officers. Such law provides further that the indemnification permitted thereunder shall not be deemed exclusive of any other rights to which the directors and officers may be entitled under a corporation's certificate of incorporation, bylaws, any agreement or otherwise. Article IX of the Company's Certificate of Incorporation, as amended, provides that, to the fullest extent permitted by the Delaware General Corporation Law, as the same exists or may hereafter be amended, a director of the Company shall not be liable to the Company or its stockholders for monetary damages for breach of fiduciary duty as a director. Article IX of the Company's Restated Bylaws provides for indemnification of officers and directors. In addition, the Company has entered into Indemnity Agreements with each of its officers and directors pursuant to which such officers and directors may be indemnified against losses arising from certain claims, including claims under the Securities Act, which may be made by reason of their being officers or directors. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the Company pursuant to the foregoing provisions, the Company has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. - 8 - No person has been authorized in connection with the offering made hereby to give any information or to make any representation not contained in this Prospectus and, if given or made, such information or representation must not be relied upon as having been authorized by the Company. This Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities to any person or by anyone in any jurisdiction where such offer or solicitation would be unlawful. Neither the delivery of this Prospectus nor any sale made hereunder shall, under any circumstances, create any implication that the information contained herein is correct as of any date subsequent to the date hereof. __________________________ TABLE OF CONTENTS -----------------
Page ---- Available Information.............. 2 Incorporation of Certain Documents by Reference.......... 2 Use of Proceeds.................... 3 Selling Stockholders............... 4 Plan of Distribution............... 6 Legal Matters...................... 7 Experts............................ 7 Indemnification.................... 8
350,000 SHARES STERLING SOFTWARE, INC. COMMON STOCK __________________________ PROSPECTUS __________________________ August 23, 1995 PART II INFORMATION REQUIRED IN THE REGISTRATION STATEMENT ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION. ------------------------------------------- The estimated expenses to be incurred in connection with the issuance and distribution of the Common Stock covered by this Registration Statement, all of which will be paid by the Registrant, are as follows:
Registration Fee......................... $ 5,536.64 Printing, Engraving and Filing Expenses.. $ 6,000.00 Accounting Fees and Expenses............. $ 5,000.00 Legal Fees and Expenses.................. $ 5,000.00 Miscellaneous............................ $ 1,008.00 ---------- Total.................................... $22,544.64
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS. ----------------------------------------- Section 145 of the Delaware General Corporation Law empowers a corporation to indemnify its directors and officers or former directors or officers and to purchase insurance with respect to liability arising out of their capacity or status as directors and officers. Such law provides further that the indemnification permitted thereunder shall not be deemed exclusive of any other rights to which the directors and officers may be entitled under a corporation's certificate of incorporation, bylaws, any agreement or otherwise. Article IX of the Company's Certificate of Incorporation, as amended, provides that, to the fullest extent permitted by the Delaware General Corporation Law, as the same exists or may hereafter be amended, a director of the Company shall not be liable to the Company or its stockholders for monetary damages for breach of fiduciary duty as a director. Article IX of the Company's Restated Bylaws provides for indemnification of officers and directors. In addition, the Company has entered into Indemnity Agreements with each of its officers and directors pursuant to which such officers and directors may be indemnified against losses arising from certain claims, including claims under the Securities Act, which may be made by reason of their being officers or directors. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the Company pursuant to the foregoing provisions, the Company has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. II-1 ITEM 16. EXHIBITS. -------- The following is a list of all exhibits filed as a part of this Registration Statement on Form S-3, including those incorporated herein by reference.
Exhibit Number Description of Exhibit -------- ---------------------- 1 None. 2 None. 4.1 Certificate of Incorporation of the Registrant.(1) 4.2 Certificate of Amendment of Certificate of Incorporation of the Registrant.(1) 4.3 Certificate of Amendment of Certificate of Incorporation of the Registrant.(1) 4.4 Certificate of Amendment of Certificate of Incorporation of the Registrant.(1) 4.5 Restated Bylaws of the Registrant.(2) 4.6 Form of Common Stock Certificate.(3) 5 Opinion of Jackson & Walker, L.L.P.(4) 8 None. 12 None. 15 None. 23.1 Consent of Ernst & Young LLP(4) 23.2 Consent of Arthur Andersen LLP(4) 23.3 Consent of Coopers & Lybrand L.L.P.(4) 23.4 Consent of Jackson & Walker, L.L.P. (included in its opinion filed as Exhibit 5 to this Registration Statement).(4) 24 Power of Attorney (appearing on page II-5 of this Registration Statement).(4) 25 None. 26 None.
II-2 27 None. 28 None. 99 1992 Non-Statutory Stock Option Plan of the Registrant (as amended through November 30, 1994).(4)
_____________________ (1) Previously filed as an exhibit to the Registrant's Registration Statement No. 33-59107 on Pre-Effective Amendment to Form S-3 and incorporated herein by reference. (2) Previously filed as an exhibit to the Registrant's Registration Statement No. 33-47131 on Form S-8 and incorporated herein by reference. (3) Previously filed as an exhibit to the Registrant's Registration Statement No. 2-86825 on Form S-1 and incorporated herein by reference. (4) Filed herewith. Item 17. Undertakings. ------------ (a) The undersigned registrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: (i) To include any prospectus required by section 10(a)(3) of the Securities Act; (ii) To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of a prospectus filed with the Commission pursuant to Rule 424(b) ((S) 230.424 (b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.; (iii) To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement; II-3 Provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference in the Registration Statement. (2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. (b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (c) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. II-4 POWER OF ATTORNEY Each person whose signature appears below authorizes Sterling L. Williams, George H. Ellis and Jeannette P. Meier, and each of them, each of whom may act without joinder of the others, to execute in the name of each such person who is then an officer or director of the Registrant and to file any amendments to this Registration Statement necessary or advisable to enable the Registrant to comply with the Securities Act of 1933, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission, in respect thereof, in connection with the registration of the securities which are the subject of this Registration Statement, which amendments may make such changes in the Registration Statement as such attorney may deem appropriate. SIGNATURES Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Dallas, State of Texas on the 23rd day of August, 1995. STERLING SOFTWARE, INC. By: /s/ Jeannette P. Meier ------------------------------------- Name: Jeannette P. Meier --------------------------- Title: Executive Vice President -------------------------- II-5 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
Signatures Title Date ---------- ----- ---- President, Chief /s/ STERLING L. WILLIAMS Executive Officer 8/23/95 --------------------------- Sterling L. Williams and Director (Principal Executive Officer) Executive Vice President /s/ GEORGE H. ELLIS and Chief 8/23/95 --------------------------- George H. Ellis Financial Officer (Principal Financial and Accounting Officer) /s/ SAM WYLY Chairman of the 8/23/95 --------------------------- Sam Wyly Board of Directors /s/ CHARLES J. WYLY, JR. 8/23/95 --------------------------- Charles J. Wyly, Jr. Vice Chairman of the Board of Directors /s/ EVAN A. WYLY Director 8/23/95 --------------------------- Evan A. Wyly /s/ MICHAEL C. FRENCH 8/23/95 --------------------------- Michael C. French Director /s/ ROBERT J. DONACHIE 8/23/95 --------------------------- Robert J. Donachie Chairman of the Audit Committee and Director /s/ PHILLIP A. MOORE 8/23/95 --------------------------- Phillip A. Moore Executive Vice President, Technology and Director /s/ ROBERT E. COOK 8/23/95 --------------------------- Robert E. Cook Director /s/ DONALD R. MILLER, JR. 8/23/95 --------------------------- Donald R. Miller, Jr. Director /s/ FRANCES A.TARKENTON 8/23/95 --------------------------- Frances A. Tarkenton Director
II-6 INDEX TO EXHIBITS Exhibit Number Description of Exhibit ------ ---------------------- 1 None. 2 None. 4.1 Certificate of Incorporation of the Registrant.(1) 4.2 Certificate of Amendment of Certificate of Incorporation of the Registrant.(1) 4.3 Certificate of Amendment of Certificate of Incorporation of the Registrant.(1) 4.4 Certificate of Amendment of Certificate of Incorporation of the Registrant.(1) 4.5 Restated Bylaws of the Registrant.(2) 4.6 Form of Common Stock Certificate.(3) 5 Opinion of Jackson & Walker, L.L.P.(4) 8 None. 12 None. 15 None. 23.1 Consent of Ernst & Young LLP(4) 23.2 Consent of Arthur Andersen LLP(4) 23.3 Consent of Coopers & Lybrand L.L.P.(4) 23.4 Consent of Jackson & Walker, L.L.P. (included in its opinion filed as Exhibit 5 to this Registration Statement).(4) 24 Power of Attorney (appearing on page II-5 of this Registration Statement).(4) 25 None. 26 None. 27 None. 28 None. II-7 99 1992 Non-Statutory Stock Option Plan of the Registrant (as amended through November 30, 1994).(4) ------------------------ (1) Previously filed as an exhibit to the Registrant's Registration Statement No. 33-59107 on Pre-Effective Amendment to Form S-3 and incorporated herein by reference. (2) Previously filed as an exhibit to the Registrant's Registration Statement No. 33-47131 on Form S-8 and incorporated herein by reference. (3) Previously filed as an exhibit to the Registrant's Registration Statement No. 2-86825 on Form S-1 and incorporated herein by reference. (4) Filed herewith. II-8 EX-5 2 OPINION OF JACKSON & WALKER EXHIBIT 5 [LETTERHEAD OF JACKSON & WALKER, L.L.P. APPEARS HERE] August 23, 1995 Sterling Software, Inc. 8080 N. Central Expressway Suite 1100 Dallas, Texas 75206 Re: Registration Statement on Form S-3 of Sterling Software, Inc. Gentlemen: We are acting as counsel for Sterling Software, Inc., a Delaware corporation (the "Company"), in connection with the registration under the Securities Act of 1933, as amended (the "Act"), of the offering and sale of up to 350,000 shares of the Company's Common Stock, par value $0.10 per share (the "Shares"), which Shares are issuable upon the exercise of options granted or to be granted from time to time under the Company's 1992 Non-Statutory Stock Option Plan ("Plans"). A Registration Statement on Form S-3 covering the offering and sale of the Shares (the "Registration Statement") is expected to be filed with the Securities and Exchange Commission (the "Commission") on or about the date hereof. In reaching the conclusions expressed in this opinion, we have examined and relied upon the originals or certified copies of all documents, certificates and instruments as we have deemed necessary to the opinions expressed herein, including the Certificate of Incorporation, as amended, and the Restated Bylaws of the Company and copies of the Plans. In making the foregoing examinations, we have assumed the genuineness of all signatures on original documents, the authenticity of all documents submitted to us as originals and the conformity to original documents of all copies submitted to us. Based solely upon the foregoing, subject to the comments hereinafter stated, and limited in all respects to the laws of the State of Texas, the General Corporation Law of the State of Delaware and the federal laws of the Untied States of America, it is our opinion that the Shares, when sold in accordance with the terms of the Plan, will be validly issued, fully paid and nonassessable. Sterling Software, Inc. August 23, 1995 Page 2 You should be aware that we are not admitted to the practice of law in the State of Delaware. Accordingly, any opinion herein as to the laws of the State of Delaware is based solely upon the latest generally available compilation of the statutes and case law of such state. We hereby consent to the use of this opinion as an Exhibit to the Registration Statement. In giving this consent, we do not admit that we come within the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission promulgated thereunder. Very truly yours, Jackson & Walker, L.L.P. EX-23.1 3 CONSENT OF ERNST & YOUNG EXHIBIT 23.1 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement on Form S-3 of Sterling Software, Inc., related to registration of shares for the 1992 Non-Statutory Stock Option Plan, of our reports dated December 1, 1994, with respect to the consolidated financial statements and schedules of Sterling Software, Inc. included in its Annual Report (Form 10-K) for the year ended September 30, 1994, filed with the Securities and Exchange Commission. Ernst & Young LLP Dallas, Texas August 22, 1995 EX-23.2 4 CONSENT OF ARTHUR ANDERSEN EXHIBIT 23.2 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference in this registration statement of our report dated June 18, 1993 (except with respect to the matter discussed in Note 19 as to which the date is July 1, 1993) included in Sterling Software, Inc.'s Form 10-K for the year ended September 30, 1994 and to all references to our Firm included in this registration statement. Arthur Andersen LLP Washington, DC August 22, 1995 EX-23.3 5 CONSENT OF COOPERS & LYBRAND EXHIBIT 23.3 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in this registration statement on Form S-3 of our report, which includes an explanatory paragraph about KnowledgeWare, Inc.'s ability to continue as a going concern, dated August 31, 1994, on our audit of the financial statements of KnowledgeWare, Inc. and Subsidiaries. We also consent to the reference to our firm under the caption "Experts". Coopers & Lybrand L.L.P. Atlanta, Georgia August 18, 1995 EX-99 6 1992 NON-STAT.STOCK OPTI EXHIBIT 99 STERLING SOFTWARE, INC. 1992 NON-STATUTORY STOCK OPTION PLAN (AS AMENDED THROUGH NOVEMBER 30, 1994) 1. Purpose. The purpose of the 1992 Non-Statutory Stock Option Plan of Sterling Software, Inc. (the "Plan") is to provide employees and key advisors with a proprietary interest in Sterling Software, Inc., a Delaware corporation, and its subsidiaries (the "Company") through the granting of options ("Option" or "Options") to purchase shares of the Company's authorized Common Stock, par value $0.10 per share ("Common Stock"), in order to: a. Increase the interest in the Company's welfare of those employees and key advisors who share primary responsibility for the management, growth and protection of the business of the Company; b. Recognize the contributions made by certain employees and key advisors to the Company's growth during its development stage; c. Furnish an incentive to such employees and key advisors to continue their services for the Company; and d. Provide a means through which the Company may attract able persons to engage as employees and key advisors. 2. Administration. The Plan shall be administered by a Stock Option Committee (the "Committee") of not less than two directors of the Company appointed by the Board of Directors (the "Board"); provided that any and all of the powers granted to the Committee hereunder may be exercised by the full Board or by the Executive Committee of the Board. No member of the Committee shall take any action with respect to Options granted to such member. The Committee shall have full and final authority in its discretion, but subject to the provisions of the Plan, to determine from time to time the individuals to whom Options shall be granted and the number of shares to be covered by each Option; to determine the time or times at which Options shall be granted; to interpret the Plan and the instruments by which Options will be evidenced; to make, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of the instruments by which Options shall be evidenced; with the consent of the Participant (as defined in Section 3), to modify or amend any Option agreement or waive any conditions or restrictions applicable to any Option or the exercise thereof; and to make all other determinations necessary or advisable for the administration of the Plan. 3. Participants. The Committee may, from time to time, select particular full-time employees and key advisors, including directors, of the Company, or of any subsidiary of the Company, to whom Options are to be granted, and upon the grant of such Options, the selected employees and key advisors shall become Participants in the Plan. As used herein, the term "Participant" means an employee or key advisor who accepts an Option, or the estate, personal representative or beneficiary thereof having the right to exercise an Option pursuant to its terms. 4. Shares Subject to the Plan. The shares of Common Stock subject to Options granted pursuant to the Plan shall be either shares of authorized but unissued Common Stock or shares of Common Stock reacquired by the Company. The maximum aggregate number of shares of Common Stock that may be issued from time to time pursuant to the Plan shall be 4,610,000. Shares that by reason of the expiration of an Option, or for any other reason, are no longer subject to purchase pursuant to an Option granted under the Plan, and shares from time to time rendered in payment of the exercise price of Options, may be made subject to additional Options granted pursuant to the Plan. The Committee may adjust the number of shares available for Options, the number of shares subject to and the exercise price of Options granted hereunder to effect a change in capitalization of the Company, such as a stock dividend, stock split, reverse stock split, share combination, exchange of shares, merger, consolidation, reorganization, liquidation, or the like, of or by the Company. 5. Grant of Options. Options granted hereunder shall be evidenced by written stock option agreements containing such terms and provisions as are recommended and approved from time to time by the Committee, but subject to and not more favorable than the terms of the Plan. The Committee may from time to time require additional terms which the Committee deems necessary or advisable. The Company shall execute stock option agreements upon instruction from the Committee. 6. Amount of Stock Subject to Options. The number of shares of Common Stock subject to an Option to be granted to a Participant shall be determined by the Committee in its sole discretion. 7. Option Exercise Price. The purchase price of Common Stock subject to an Option shall be determined by the Committee on the date of grant and may be equal to, less than or greater than the fair market value of the Common Stock on the date of grant. 8. Restrictions. The Committee may, but need not, at the time of granting of an Option or at any subsequent time impose such restrictions, if any, on issuance, voluntary disposition and release from escrow of any Options including, without limitation, permitting exercise of Options only in installments over a period of years. 9. Payment. Full payment for Common Stock purchased upon the exercise of an Option shall be made at the time of exercise. No Common Stock shall be issued until full payment has been made and a Participant shall have none of the rights of a shareholder until shares of Common Stock are issued to him. Any federal, state or local taxes required to be paid -2- or withheld at the time of exercise shall also be paid or withheld in full prior to any delivery of shares of Common Stock upon exercise. Payment may be made in cash, in shares of Common Stock then owned by the Participant, or in any other form of valid consideration, or a combination of any of the foregoing, as required by the Committee in its discretion. Shares of Common Stock tendered in payment of the exercise price of any Options may be reissued to the Participant who tendered the shares of Common Stock as part of the shares of Common Stock issuable upon exercise of other Options granted from time to time pursuant to the Plan. 10. Transferability of Options. Options granted under the Plan may be transferred by the holder thereof upon five days prior written notice to the Company. 11. Time of Granting of an Option. The grant of an Option pursuant to the Plan shall be deemed to have occurred when the Stock Option Committee shall have adopted a resolution approving such grant. 12. Rights in Event of Death or Disability of Participant. The Committee shall have discretion to include in each Option agreement such provisions regarding exercisability of the Options following the death or disability of the Participant as it, in its sole discretion, deems to be appropriate. 13. Stock Purchased for Investment. At the discretion of the Committee, any Option agreement may provide that the Option holder shall, by accepting an Option, represent and agree on behalf of himself and his transferees by will or the laws of descent and distribution that all shares of Common Stock purchased upon the exercise of the Option will be acquired for investment and not for resale or distribution, and that upon each exercise of any portion of an Option, the person entitled to exercise the same shall furnish evidence satisfactory to the Company (including a written and signed representation) to the effect that the shares of Common Stock are being acquired in good faith and for investment and not for resale or distribution. 14. Termination of Option Rights and Awards. The Committee may provide in each Option agreement for the circumstances under which Options granted hereunder may terminate for any reason that the Committee, in its sole discretion, deems to be appropriate. 15. Amendment or Discontinuation. The Plan may be amended, altered or discontinued by the Board without approval of the stockholders. In the event any law, or any rule or regulation issued or promulgated by the Internal Revenue Service, Securities and Exchange Commission, National Association of Securities Dealers, Inc., any stock exchange upon which the Common Stock is listed for trading or other governmental or quasi-governmental agency having jurisdiction over the Company, its Common Stock or the Plan requires the Plan to be amended, the Plan will be amended at that time and all Options then outstanding will be subject to such amendment. 16. Employment. This Plan and any Option granted under this Plan do not confer upon the Participant any right to be employed or to continue employment with the Company. -3- 17. No Obligation to Exercise Option. The granting of an Option pursuant to the Plan shall not impose any obligation upon the Participant to exercise such Option. 18. Termination. Unless sooner terminated by action of the Board, the Plan shall terminate on March 31, 2002, and no Options may be granted pursuant to the Plan after such date. 19. Use of Proceeds. The proceeds derived from the sale of stock pursuant to Options granted under the Plan shall constitute general funds of the Company. 20. Effective Date of the Plan. The Plan, as originally adopted, was effective as of the first day of April, 1992. The Plan, as amended and restated, shall be effective as of the 30th day of November, 1994. STERLING SOFTWARE, INC. Dated: As of November 30, 1994 By: /s/ Sterling L. Williams -------------------------------------- Sterling L. Williams President and Chief Executive Officer -4-