SC 13D/A 1 w46636sc13da.txt SC 13D/A - EMERGE INTERACTIVE, INC. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D (RULE 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13D-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Amendment No. 2 EMERGE INTERACTIVE, INC. (Name of Issuer) COMMON STOCK, PAR VALUE $0.008 PER SHARE (Title of Class of Securities) 29088W 10 3 (CUSIP Number) N. JEFFREY KLAUDER, ESQ. HENRY N. NASSAU, ESQ. SAFEGUARD SCIENTIFICS, INC. INTERNET CAPITAL GROUP, INC. 435 DEVON PARK DRIVE, BUILDING 800 435 DEVON PARK DRIVE, BUILDING 600 WAYNE, PA 19087 WAYNE, PA 19087 (610) 975-4984 (610) 989-0111 WITH COPIES TO: RICHARD B. ALDRIDGE, ESQ. CHRISTOPHER G. KARRAS, ESQ. MORGAN, LEWIS & BOCKIUS LLP DECHERT 1701 MARKET STREET 4000 BELL ATLANTIC TOWER PHILADELPHIA, PA 19103 1717 ARCH STREET (215) 963-4829 PHILADELPHIA, PA 19103-2793 (215) 994-4000 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) December 21, 2000 (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(e), 13d-1(f) or 13d-1(g), check the following box [ ]. NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent. (Continued on following pages) Page 1 of 20 2 CUSIP No. 29088W 10 3 Page 2 of 20 ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON SAFEGUARD SCIENTIFICS, INC. I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) 23-1609753 ------------------------------------------------------------------------------- 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 PENNSYLVANIA ------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER -0- SHARES --------------------------------------------------------- OF SHARES 8 SHARED VOTING POWER 9,171,857 SHARES OF CLASS A COMMON STOCK BENEFICIALLY 6,833,334 SHARES OF CLASS B COMMON STOCK --------------------------------------------------------- OWNED 9 SOLE DISPOSITIVE POWER -0- SHARES BY EACH --------------------------------------------------------- 10 SHARED DISPOSITIVE POWER REPORTING 7,921,857 SHARES OF CLASS A COMMON STOCK -0- SHARES OF CLASS B COMMON STOCK PERSON WITH ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 16,005,191 SHARES ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X] ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 44.54% ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ------------------------------------------------------------------------------- * Excludes an aggregate of 383,238 shares of Class A common stock held by certain executive officers and directors of Safeguard Scientifics, Inc., some of whom are directors of Internet Capital Group, Inc., and 501(c)(3) foundations controlled by them. Safeguard Scientifics, Inc. disclaims beneficial ownership of such shares. Also excludes options to purchase 100,000 shares of Class A common stock held by Douglas Alexander, a Managing Director of Internet Capital Group, Inc., 10,120 shares of Class A common stock held by Robert E. Keith, Jr., the Chairman of the Board of Internet Capital Group Inc. and a director of Safeguard Scientifics, Inc., and 5,000 shares of Class A common stock held by Dr. Thomas Gerrity, a director of Internet Capital Group, Inc. Safeguard Scientifics, Inc. disclaims beneficial ownership of such securities. 3 CUSIP No. 29088W 10 3 Page 3 of 20 ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON SAFEGUARD DELAWARE, INC. I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) 52-2081181 ------------------------------------------------------------------------------- 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 -0- SHARES --------------------------------------------------------- OF SHARES 8 SHARED VOTING POWER 3,767,936 SHARES OF CLASS A COMMON STOCK BENEFICIALLY -0- SHARES OF CLASS B COMMON STOCK --------------------------------------------------------- OWNED 9 SOLE DISPOSITIVE POWER -0- SHARES BY EACH --------------------------------------------------------- 10 SHARED DISPOSITIVE POWER REPORTING 3,767,936 SHARES OF CLASS A COMMON STOCK -0- SHARES OF CLASS B COMMON STOCK PERSON WITH ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,767,936 SHARES ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 10.83% ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ------------------------------------------------------------------------------- 4 CUSIP No. 29088W 10 3 Page 4 of 20 ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON SAFEGUARD SCIENTIFICS (DELAWARE), INC. I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) 51-02911711 ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] ------------------------------------------------------------------------------- 3 SEC USE ONLY ------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* ------------------------------------------------------------------------------- 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 -0- SHARES --------------------------------------------------------- OF SHARES 8 SHARED VOTING POWER 4,153,921 SHARES OF CLASS A COMMON STOCK BENEFICIALLY -0- SHARES OF CLASS B COMMON STOCK --------------------------------------------------------- OWNED 9 SOLE DISPOSITIVE POWER -0- SHARES BY EACH --------------------------------------------------------- 10 SHARED DISPOSITIVE POWER REPORTING 4,153,921 SHARES OF CLASS A COMMON STOCK -0- SHARES OF CLASS B COMMON STOCK PERSON WITH ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,153,921 SHARES ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 11.94% ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ------------------------------------------------------------------------------- 5 CUSIP No. 29088W 10 3 Page 5 of 20 ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON INTERNET CAPITAL GROUP, INC. I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) 23-2996071 ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] ------------------------------------------------------------------------------- 3 SEC USE ONLY ------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* ------------------------------------------------------------------------------- 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 -0- SHARES --------------------------------------------------------- OF SHARES 8 SHARED VOTING POWER 9,171,857 SHARES OF CLASS A COMMON STOCK BENEFICIALLY 6,833,334 SHARES OF CLASS B COMMON STOCK --------------------------------------------------------- OWNED 9 SOLE DISPOSITIVE POWER -0- SHARES BY EACH --------------------------------------------------------- 10 SHARED DISPOSITIVE POWER REPORTING 1,250,000 SHARES OF CLASS A COMMON STOCK 6,833,334 SHARES OF CLASS B COMMON STOCK PERSON WITH ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 16,005,191 SHARES ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X] ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 44.54% ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ------------------------------------------------------------------------------- * Excludes options to purchase 100,000 shares of Class A common stock held by Douglas Alexander, a Managing Director of Internet Capital Group, Inc., 10,120 shares of Class A common stock held by Robert E. Keith, Jr., the Chairman of the Board of Directors of Internet Capital Group, Inc. and a director of Safeguard Scientifics, Inc., and 5,000 shares of Class A common stock held by Dr. Thomas Gerrity, a director of Internet Capital Group, Inc. Internet Capital Group, Inc. disclaims beneficial ownership of such securities. Also excludes an aggregate of 383,238 shares of Class A common stock held by certain executive officers and directors of Safeguard Scientifics, Inc., some of whom are also directors of Internet Capital Group, Inc., and 501(c)(3) foundations controlled by them. Internet Capital Group, Inc. disclaims beneficial ownership of such securities. 6 CUSIP No. 29088W 10 3 Page 6 of 20 ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON ICG HOLDINGS, INC. I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) 51-0396570 ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] ------------------------------------------------------------------------------- 3 SEC USE ONLY ------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* ------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------- NUMBER 7 SOLE VOTING POWER -0- SHARES OF SHARES --------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 1,250,000 SHARES OF CLASS A COMMON STOCK 6,833,334 SHARES OF CLASS B COMMON STOCK OWNED --------------------------------------------------------- 9 SOLE DISPOSITIVE POWER BY EACH -0- SHARES --------------------------------------------------------- REPORTING 10 SHARED DISPOSITIVE POWER 1,250,000 SHARES OF CLASS A COMMON STOCK PERSON WITH 6,833,334 SHARES OF CLASS B COMMON STOCK -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,083,334 SHARES ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 22.50% ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ------------------------------------------------------------------------------- 7 CUSIP No. 29088W 10 3 Page 7 of 20 ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON 1999 INTERNET CAPITAL L.P. I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] ------------------------------------------------------------------------------- 3 SEC USE ONLY ------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* ------------------------------------------------------------------------------- 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 -0- SHARES --------------------------------------------------------- OF SHARES 8 SHARED VOTING POWER 1,250,000 SHARES OF CLASS A COMMON STOCK BENEFICIALLY 6,833,334 SHARES OF CLASS B COMMON STOCK --------------------------------------------------------- OWNED 9 SOLE DISPOSITIVE POWER -0- SHARES BY EACH --------------------------------------------------------- 10 SHARED DISPOSITIVE POWER REPORTING 1,250,000 SHARES OF CLASS A COMMON STOCK 6,833,334 SHARES OF CLASS B COMMON STOCK PERSON WITH ------------------------------------------------------------------------------ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,083,334 SHARES ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 22.50% ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN ------------------------------------------------------------------------------- 8 CUSIP No. 29088W 10 3 Page 8 of 20 The following information supplements and amends the information contained in the Schedule 13D, as amended, previously filed by the Reporting Persons relating to the common stock, $0.008 par value per share, of eMerge Interactive, Inc., a Delaware corporation (the "Company"), listed on the cover pages of this amendment. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATIONS. Add the following to the end of Item 3: On December 21, 2000, Safeguard Scientifics, Inc. ("Safeguard") purchased from XL Vision, Inc. 689,200 shares of the Company's Class A common stock for an aggregate purchase price of $2,237,074. The funds used in making these purchases came from the general working capital of Safeguard. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. The following replaces in its entirety the disclosure previously contained in Item 5: The table below sets forth the aggregate number of shares and percentage of the Company's outstanding shares beneficially owned by each Reporting Person. Except as otherwise noted, each person listed has sole voting and dispositive power over all shares listed opposite its name. Any of the aforementioned persons whose names do not appear in the table below do not, to the best of each Reporting Person's knowledge, beneficially own any shares of the Company. Unless otherwise indicated in Schedule VII annexed hereto, no Reporting Person or director or executive officer of a Reporting Person listed on Schedules II-VI annexed hereto has consummated any transaction in the Company's shares during the past sixty days other than as set forth herein.
Beneficial Ownership Number of Percentage Shares of Total Safeguard Scientifics, Inc. 16,005,191 (3) 44.54% (1) Safeguard Delaware, Inc. 3,767,936 (4) 10.83% (2) Safeguard Scientifics (Delaware), Inc. 4,153,921 11.94% (2) Safeguard 98 Capital, L.P. 340,000 (5) 0.98% (2) Internet Capital Group, Inc. 16,005,191 (6) 44.54% (1) ICG Holdings, Inc. 8,083,334 (7) 22.50% (1) 1999 Internet Capital L.P. 8,083,334 (7) 22.50% (1)
-------------- (1) Calculations based upon 34,794,896 shares outstanding on November 7, 2000 and warrants to purchase 1,138,889 shares exercisable within 60 days of the date hereof. (2) Calculations based upon 34,794,896 shares outstanding on November 7, 2000. (3) Includes the 8,083,334 shares beneficially owned by ICG, the 3,767,936 shares beneficially owned by SDI, a wholly-owned subsidiary of Safeguard, and the 4,153,921 shares beneficially owned by SSDI, a wholly-owned subsidiary of Safeguard. Safeguard and each of SDI and SDII have reported that Safeguard together with each of SDI and SDII, respectively, have both shared voting and dispositive power with respect to the shares held by each of SDI and SDII, respectively, because Safeguard is the sole stockholder of each of SDI and SDII. Included in the 3,767,936 shares beneficially owned by SDI are 340,000 shares of the Company that Safeguard 98 (of which SDI serves as the general partner) has the option to acquire upon conversion of debt of XL Vision to Safeguard 98 and 120,721 shares of the Company which SDI will acquire upon conversion of debt of XL Vision to SDI. Safeguard and ICG have entered into a joint venture agreement that, among other things, governs how the shares of the Company's common stock that are beneficially owned by each of them will be voted. Excludes an aggregate of 383,238 shares of Class A common stock held by certain executive officers and directors of Safeguard, some of whom are directors of ICG, and 501(c)(3) foundations controlled by them. Safeguard disclaims beneficial 9 CUSIP No. 29088W 10 3 Page 9 of 20 ownership of such shares. Also excludes options to purchase 100,000 shares of Class A common stock held by Douglas Alexander, a Managing Director of ICG, 10,120 shares of Class A common stock held by Robert E. Keith, Jr., the Chairman of the Board of ICG and a director of Safeguard, and 5,000 shares of Class A common stock held by Dr. Thomas Gerrity, a director of ICG. Safeguard disclaims beneficial ownership of such securities. (4) SDI is a wholly-owned subsidiary of Safeguard and the general partner of 98 Capital. Includes an aggregate of 460,721 shares that SDI may acquire from XL Vision in connection with the conversion of debt of XL Vision to 98 Capital and SDI. (5) Represents 340,000 shares that reporting person may acquire from XL Vision in connection with the conversion of debt. (6) Includes 7,921,857 shares beneficially owned by Safeguard. Safeguard and ICG have entered into a joint venture agreement that, among other things, governs how the shares of the Company's common stock that are controlled by each of them will be voted. Also includes 5,694,445 shares of Class B common stock, a warrant to purchase 1,138,889 shares of Class B common stock, and 1,250,000 shares of Class A common stock held by ICG LP, a Delaware limited partnership of which ICG's wholly-owned subsidiary, ICG Holdings, is the sole general partner. ICG, ICG Holdings and ICG LP have reported that each of them has both shared voting and dispositive power with respect to the shares held by ICG LP because ICG is the sole stockholder of ICG Holdings and ICG Holdings is the sole general partner of ICG LP. ICG, ICG Holdings and ICG LP share dispositive power over such 8,083,334 shares. Excludes options to purchase 100,000 shares of Class A common stock held by Douglas Alexander, a Managing Director of ICG, 10,120 shares of Class A common stock held by Robert E. Keith, Jr., the Chairman of the Board of ICG and a director of Safeguard, and 5,000 shares of Class A common stock held by Dr. Thomas Gerrity, a director of ICG. ICG disclaims beneficial ownership of such securities. Also excludes an aggregate of 383,238 shares of Class A common stock held by certain executive officers and directors of Safeguard, some of whom are directors of ICG, and 501(c)(3) foundations controlled by them. ICG disclaims beneficial ownership of such securities. (7) Includes 5,694,445 shares of Class B common stock, a warrant to purchase 1,138,889 shares of Class B common stock and 1,250,000 shares of Class A common stock owned by ICG LP. The Schedule 13D previously filed included in Safeguard's beneficial ownership calculation the shares of Class A common stock of the Company owned by XL Vision, Inc. ("XL") and Technology Leaders L.P., Technology Leaders MI Corp., Technology Leaders II L.P. and Technology Leaders II Offshore, C.V. ("TL Funds"). Safeguard disclaims beneficial ownership of the shares of Class A common stock of the Company owned by XL or the TL Funds except as expressly described in Item 5 and such shares are excluded from all beneficial ownership calculations contained in this amendment. ITEM 6. CONTRACT, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. Add the following to the end of Item 6: 98 Capital and XL Vision are parties to a Note Purchase Agreement dated as of May 14, 1999 pursuant to which 98 Capital has the option of converting a portion of the debt of XL Vision into 340,000 shares of the Company currently owned by XL Vision, at an initial per share conversion price of $11.25. Commencing August 9, 2001, XL Vision may require mandatory conversion of such debt as long as the closing price of a share of the Company's common stock has exceeded $22.50 for each of the previous 65 trading days. Commencing on the earlier of August 9, 2001 or 90 days after completion of a second public offering of common stock of the Company, XL Vision also may prepay up to $5 million of debt at a price equal to the lower of a 25% discount from the rolling 20-day average closing price or a 20% discount from the closing price on the day before prepayment, so long as the 20-day average closing price and the last day closing price exceeds $22.50 per share. SDI and XL Vision are parties to a Master Note Modification Agreement dated as of May 19, 2000 that provides that one-third of various outstanding notes of XL Vision held by SDI will become convertible into 120,721 shares of the Company owned by XL Vision. 10 CUSIP No. 29088W 10 3 Page 10 of 20 Safeguard and SDI are parties to a Purchase and Sale Agreement dated as of December 21, 2000 pursuant to which SDI purchased 689,200 shares of the Company from XL Vision as described in Item 3. The foregoing descriptions are qualified in their entirety by reference to the Note Purchase Agreement, the Master Note Modification Agreement, and the Purchase and Sale Agreement, copies of which are attached hereto as Exhibits 99.2, 99.3 and 99.4, respectively, and the terms of which are incorporated herein by reference. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. Add the following to the end of Item 7: Agreement Regarding the Joint Filing of Schedule 13D attached hereto as Exhibit 99.1. Note Purchase Agreement, dated as of May 14, 1999, among XL Vision, Inc., Safeguard 98 Capital L.P., Wheatley Partners, L.P. (and each of its affiliates, "The Wheatley Group") attached hereto as Exhibit 99.2. Master Note Modification Agreement, dated as of May 19, 2000, by and among XL Vision, Inc., Safeguard Delaware, Inc., Technology Leaders L.P. and Technology Leaders MI Corp., attached hereto as Exhibit 99.3. Purchase and Sale Agreement dated as of December 21, 2000 by and among XL Vision, Inc., Safeguard Scientifics, Inc., Safeguard Delaware, Inc. and incuVest LLC, attached hereto as Exhibit 99.4. 11 CUSIP No. 29088W 10 3 Page 11 of 20 SIGNATURES After reasonable inquiry and to the best of my knowledge and belief, I certify that the information named in this schedule is true, complete and correct. Date: March 15, 2001 Safeguard Scientifics, Inc. By: /s/ N. Jeffrey Klauder ------------------------------ N. Jeffrey Klauder Executive Vice President and General Counsel Date: March 15, 2001 Safeguard Delaware, Inc. By: /s/ N. Jeffrey Klauder ------------------------------- N. Jeffrey Klauder Vice President Date: March 15, 2001 Safeguard Scientifics (Delaware), Inc. By: /s/ N. Jeffrey Klauder ------------------------------- N. Jeffrey Klauder Vice President Date: March 15, 2001 Internet Capital Group, Inc. By: /s/ Henry N. Nassau ------------------------------- Henry N. Nassau Managing Director, General Counsel and Secretary Date: March 15, 2001 ICG Holdings, Inc. By: /s/ Henry N. Nassau ------------------------------- Henry N. Nassau Secretary Date: March 15, 2001 1999 Internet Capital L.P. By: ICG Holdings, Inc., its General Partner By: /s/ Henry N. Nassau ------------------------------- Henry N. Nassau Secretary 12 CUSIP No. 29088W 10 3 Page 12 of 20 SCHEDULE I 1. Safeguard Scientifics, Inc. Safeguard Scientifics, Inc. a Pennsylvania corporation ("Safeguard"), owns all of the outstanding capital stock of Safeguard Delaware, Inc., a Delaware corporation ("SDI"), Safeguard Scientifics (Delaware) Inc. ("SSDI")" and Technology Leaders Management, Inc., a Pennsylvania corporation ("TL Management"). Safeguard has an address at 800 The Safeguard Building, 435 Devon Park Drive, Wayne, PA 19087-1945. Safeguard is a leader in identifying, developing and operating premier technology companies with a focus on three sectors: software, communications, and eServices. See Schedule II with respect to the executive officers and directors of Safeguard as of the date of filing this Schedule 13D. 2. Safeguard Delaware, Inc. SDI is a wholly owned subsidiary of Safeguard. SDI is the sole general partner of Safeguard 98 Capital, L.P., a Delaware limited partnership. SDI is a holding company and has an office at 103 Springer Building, 3411 Silverside Road, P.O. Box 7048, Wilmington, DE 19803. Schedule III provides information about the executive officers and directors of SDI as of the date of filing this Schedule 13D. 3. Safeguard Scientifics (Delaware), Inc. SSDI is a wholly owned subsidiary of Safeguard. SSDI is a holding company and has an office at 103 Springer Building, 3411 Silverside Road, P.O. Box 7048, Wilmington, DE 19803. Schedule IV provides information about the executive officers and directors of SDI as of the date of filing this Schedule 13D. 13 CUSIP No. 29088W 10 3 Page 13 of 20 SCHEDULE I-A 1. Internet Capital Group, Inc. Internet Capital Group, Inc., a Delaware corporation ("ICG"), owns all of the outstanding capital stock of ICG Holdings, Inc., a Delaware corporation ("ICG Holdings"). ICG has an address at 435 Devon Park Drive, 600 Building, Wayne, PA 19087. See Schedule V with respect to the executive officers and directors of ICG as of the date of filing this Schedule 13D. 2. ICG Holdings, Inc. ICG Holdings is a wholly-owned subsidiary of ICG. ICG Holdings is a holding company with a principal place of business at Pencader Corporate Center, 100 Lake Drive, Suite 4, Newark, DE 19702. ICG Holdings is the sole General Partner of 1999 Internet Capital L.P., a Delaware limited partnership ("ICG LP"). See Schedule VI with respect to the executive officers and directors of ICG Holdings as of the date of filing this Schedule 13D. 3. 1999 Internet Capital L.P. ICG LP is a Delaware limited partnership with a principal place of business at Pencader Corporate Center, 100 Lake Drive, Suite 4, Newark, DE 19702. 14 CUSIP No. 29088W 10 3 Page 14 of 20 SCHEDULE II EXECUTIVE OFFICERS AND DIRECTORS OF SAFEGUARD SCIENTIFICS, INC.
Name Present Principal Employment Business Address ---- ---------------------------- ---------------- EXECUTIVE OFFICERS* Warren V. Musser Chairman of the Board and Chief Executive Safeguard Scientifics,Inc. Officer 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Harry Wallaesa President and Chief Operating Officer Safeguard Scientifics,Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Jerry L. Johnson Executive Vice President, Operations Safeguard Scientifics,Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Gerald A. Blitstein Executive Vice President and Chief Safeguard Scientifics,Inc. Financial Officer 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 John K. Halvey Executive Vice President Safeguard Scientifics,Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 N. Jeffrey Klauder Executive Vice President and General Safeguard Scientifics,Inc. Counsel 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 DIRECTORS* Vincent G. Bell Jr. President and Chief Executive Officer, Verus Corporation Verus Corporation 5 Radnor Corporate Center Suite 520 Radnor, PA 19087 Walter W. Buckley III President & CEO, Internet Capital Group, Internet Capital Group Inc. 435 Devon Park Drive Building 600 Wayne, PA 19087 Robert A. Fox President, R.A.F. Industries R.A.F. Industries One Pitcairn Pl, Suite 2100 165 Township Line Road Jenkintown, PA 19046-3593 Robert E. Keith Jr. Managing Director of TL Ventures and TL Ventures President and CEO, Technology Leaders 700 Building Management, Inc. 435 Devon Park Drive Wayne, PA 19087 Michael Emmi Chairman, President and CEO, Systems & Systems & Computer Technology Computer Technology Corporation Corporation 4 Country View Road Malvern, PA 19355 Jack L. Messman President and CEO, Cambridge Technology Cambridge Technology Partners Partners (Massachusetts) 8 Cambridge Center Cambridge, MA 02142 Warren V. Musser (Same as above) (Same as above) Russell E. Palmer Chairman and CEO, The Palmer Group The Palmer Group 3600 Market Street, Suite 530 Philadelphia, PA 19104 John W. Poduska Sr. Chairman of the Board, Advanced Visual Advanced Visual Systems, Inc. Systems, Inc. 300 Fifth Avenue Waltham, MA 02154
15 CUSIP No. 29088W 10 3 Page 15 of 20
Name Present Principal Employment Business Address ---- ---------------------------- ---------------- Heinz Schimmelbusch President, Safeguard International Group, Safeguard International Group Inc., Chairman, Allied Resource Building 400 Corporation, Chairman, Metallurg, Inc. and 435 Devon Park Drive Managing Director, Safeguard International Wayne, PA 19087 Fund, L.P. Hubert J.P. Schoemaker Chairman of the Board and CEO, Neuronyx, Neuronyx, Inc. Inc. 200 Great Valley Parkway Malvern, PA 19355 Harry Wallaesa (Same as above) (Same as above) Carl J. Yankowski President and CEO, Palm Computing, Inc. Palm Computing, Inc. 5400 Bayfront Plaza, MS9208 Santa Clara, CA 95054
* All Executive Officers and Directors are U.S. citizens, except Heinz Schimmelbusch, who is a citizen of Austria, and Hubert J.P. Schoemaker, who is a citizen of the Netherlands. 16 CUSIP No. 29088W 10 3 Page 16 of 20 SCHEDULE III EXECUTIVE OFFICERS AND DIRECTORS OF SAFEGUARD DELAWARE, INC.
Name Present Principal Employment Business Address ---- ---------------------------- ---------------- EXECUTIVE OFFICERS* Harry Wallaesa President Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Jerry L. Johnson Vice President Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Gerald A. Blitstein Vice President and Treasurer Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 John K. Halvey Vice President Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 N. Jeffrey Klauder Vice President and Assistant Safeguard Scientifics, Inc. Secretary 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 DIRECTORS* Joseph DeSanto Vice President, Safeguard Safeguard Scientifics, Inc. Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Tonya Zweier Vice President, Safeguard Safeguard Scientifics, Inc. Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Mary Alice Avery Assistant Secretary 103 Springer Building 3411 Silverside Road Wilmington, DE 19810
* All Executive Officers and Directors are U.S. Citizens. 17 CUSIP No. 29088W 10 3 Page 17 of 20 SCHEDULE IV EXECUTIVE OFFICERS AND DIRECTORS OF SAFEGUARD SCIENTIFICS (DELAWARE), INC.
Name Present Principal Employment Business Address ---- ---------------------------- ---------------- EXECUTIVE OFFICERS* Harry Wallaesa President Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Jerry L. Johnson Vice President Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Gerald A. Blitstein Vice President and Treasurer Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 John K. Halvey Vice President Safeguard Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 N. Jeffrey Klauder Vice President and Assistant Safeguard Scientifics, Inc. Secretary 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 DIRECTORS* Joseph DeSanto Vice President, Safeguard Safeguard Scientifics, Inc. Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Tonya Zweier Vice President, Safeguard Safeguard Scientifics, Inc. Scientifics, Inc. 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 Mary Alice Avery Assistant Secretary 103 Springer Building 3411 Silverside Road Wilmington, DE 19810
* All Executive Officers and Directors are U.S. Citizens. 18 CUSIP No. 29088W 10 3 Page 18 of 20 SCHEDULE V EXECUTIVE OFFICERS AND DIRECTORS OF INTERNET CAPITAL GROUP, INC.
Name Present Principal Employment Business Address ---- ---------------------------- ---------------- EXECUTIVE OFFICERS* Walter W. Buckley III President and CEO Internet Capital Group, Inc. 600 Building 435 Devon Park Drive Wayne, PA 19087 Kenneth A. Fox Managing Director, West Coast Internet Capital Group, Inc. Operations 600 Building 435 Devon Park Drive Wayne, PA 19087 Nigel T. Andrews Managing Director, Office of Internet Capital Group, Inc. the President 600 Building 435 Devon Park Drive Wayne, PA 19087 Henry N. Nassau Managing Director, General Internet Capital Group, Inc. Counsel and Secretary 600 Building 435 Devon Park Drive Wayne, PA 19087 Edward H. West Managing Director and Chief Internet Capital Group, Inc. Financial Officer 600 Building 435 Devon Park Drive Wayne, PA 19087 DIRECTORS* Robert E. Keith, Jr. Managing Director of TL TL Ventures Ventures and President and 700 Building CEO, Technology Leaders 435 Devon Park Drive Management, Inc. Wayne, PA 19087 Walter W. Buckley, III (Same as above) (Same as above) Kenneth A. Fox (Same as above) (Same as above) Julian A. Brodsky Vice Chairman, Comcast Comcast Corporation Corporation and Vice 1500 Market Street President and Director, Sural Philadelphia, PA 19102 Corporation Dr. Thomas P. Gerrity Professor and Director, The Wharton School Wharton School, Electronic University of Pennsylvania Commerce Forum 1000 Steinberg Hall-Dietrich Hall Philadelphia, PA 19104 Warren V. Musser Chairman of the Board and Safeguard Scientifics, Inc. Chief Executive Officer, 800 The Safeguard Building Safeguard Scientifics, Inc. 435 Devon Park Drive Wayne, PA 19087 Peter A. Solvik Senior Vice President and Cisco Systems, Inc. Chief Information Officer, 170 West Tasman Drive Cisco Systems, Inc. San Jose, CA 95134-1706
* All Executive Officers and Directors are U.S. Citizens, except Nigel T. Andrews, who is a citizen of the United Kingdom. 19 CUSIP No. 29088W 10 3 Page 19 of 20 SCHEDULE VI EXECUTIVE OFFICERS AND DIRECTORS OF ICG HOLDINGS, INC.
Name Present Principal Employment Business Address ---- ---------------------------- ---------------- EXECUTIVE OFFICERS* Walter W. Buckley III President Internet Capital Group, Inc. 600 Building 435 Devon Park Drive Wayne, PA 19087 Kenneth A. Fox Vice President Internet Capital Group, Inc. 600 Building 435 Devon Park Drive Wayne, PA 19087 Henry N. Nassau Vice President and Secretary Internet Capital Group, Inc. 600 Building 435 Devon Park Drive Wayne, PA 19087 Edward H. West Chief Financial Officer Internet Capital Group, Inc. 600 Building 435 Devon Park Drive Wayne, PA 19087 DIRECTORS* Walter W. Buckley, III (Same as above) (Same as above) Kenneth A. Fox (Same as above) (Same as above) Henry N. Nassau (Same as above) (Same as above) Edward H. West (Same as above) (Same as above)
*All Executive Officers and Directors are U.S. Citizens. 20 CUSIP No. 29088W 10 3 Page 20 of 20 SCHEDULE VII All of the transactions in the following table were effected in brokers' transactions in the Nasdaq National Market unless otherwise noted.
----------------------------------------------------------------------------------------------------------------------- TYPE OF PARTY TRANSACTION DATE TRANSACTION NUMBER OF SHARES PRICE PER SHARE ----------------------------------------------------------------------------------------------------------------------- Vincent G. Bell 12/19/00 Sale 3,257 $3.7812 (foundation) ----------------------------------------------------------------------------------------------------------------------- Vincent G. Bell 12/18/00 Sale 2,000 $3.875 (foundation) ----------------------------------------------------------------------------------------------------------------------- Vincent G. Bell Jr. 12/26/00 Sale 4,000 $3.875 ----------------------------------------------------------------------------------------------------------------------- Robert A. Fox 12/18/00 Private Purchase 500,000 $5.50 ----------------------------------------------------------------------------------------------------------------------- Robert A. Fox 1/10/01 through Sale 160,100 $5.55 1/26/01 -----------------------------------------------------------------------------------------------------------------------