SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 S C H E D U L E 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. )(1) NETWORK - 1 SECURITY SOLUTIONS, INC. - -------------------------------------------------------------------------------- (Name of Issuer) COMMON STOCK, $0.01 PAR VALUE - -------------------------------------------------------------------------------- (Title of Class of Securities) 64121N109 -------------- (CUSIP Number) Copy to: Applewood Associates, L.P. 68 Wheatley Road Morrison Cohen Singer & Weinstein, LLP Brookville, New York 11545 750 Lexington Avenue Telephone (516) 626-3070 New York, New York 10022 Telephone (212) 735-8600 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) November 12, 1998 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-(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 page(s)) - -------- (1) The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). - 1 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Applewood Associates, L.P. | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* WC, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization New York | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 1,194,659 shares 25.2% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 0 shares 0% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 1,194,659 shares 25.2% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 0 shares 0% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 1,194,659 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 25.2% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | PN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 2 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Applewood Capital Corp. | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* WC, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization New York | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 0 shares 0% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 1,194,659 shares 25.2% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 0 shares 0% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 1,194,659 shares 25.2% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 1,194,659 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 25.2% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | CO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 3 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Irwin Lieber | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* PF, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization United States | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 77,944 shares 1.8% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 1,194,659 shares 25.2% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 77,944 shares 1.8% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 1,194,659 shares 25.2% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 1,272,603 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 26.5% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | IN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 4 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Barry Rubenstein | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* PF, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization United States | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 85,704 shares 1.9% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 1,259,067 shares 26.5% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 85,704 shares 1.9% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 1,259,067 shares 26.5% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 1,344,771 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 28.0% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | IN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 5 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Barry Fingerhut | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* PF, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization United States | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 31,040 shares 0.7% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 1,194,659 shares 25.2% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 31,040 shares 0.7% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 1,194,659 shares 25.2% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 1,225,699 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 25.8% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | IN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 6 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Seth Lieber | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* PF, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization United States | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 4,656 shares 0.1% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 1,194,659 shares 25.2% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 4,656 shares 0.1% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 1,194,659 shares 25.2% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 1,199,315 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 25.3% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | IN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 7 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Jonathan Lieber | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* PF, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization United States | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 3,104 shares 0.1% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 1,194,659 shares 25.2% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 3,104 shares 0.1% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 1,194,659 shares 25.2% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 1,197,763 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 25.2% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | IN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 8 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Woodland Venture Fund | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* WC, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization New York | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 41,128 shares 0.9% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 23,280 shares 0.5% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 41,128 shares 0.9% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 23,280 shares 0.5% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 64,408 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 1.5% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | PN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 9 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Seneca Ventures | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* WC, OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization New York | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 23,280 shares 0.5% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 41,128 shares 0.9% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 23,280 shares 0.5% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 41,128 shares 0.9% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 64,408 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 1.5% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | PN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 10 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Marilyn Rubenstein | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization United States | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 0 shares 0% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 64,408 shares 1.5% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 0 shares 0% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 64,408 shares 1.5% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 64,408 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 1.5% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | IN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 11 of 26- CUSIP No. 64121N109 13D ================================================================================ 1 | Names of Reporting Persons | I.R.S. Identification Nos. of Above Persons (Entities Only) | Woodland Services Corp. | - -------------------------------------------------------------------------------- 2 | Check the Appropriate Box if a Member of a Group* (a) |_| | (b) |_| - -------------------------------------------------------------------------------- 3 | SEC Use Only | - -------------------------------------------------------------------------------- 4 | Source of Funds* OO | - -------------------------------------------------------------------------------- 5 | Check Box if Disclosure of Legal Proceedings is Required | Pursuant to Item 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 | Citizenship or Place of Organization New York | - -------------------------------------------------------------------------------- | 7 | Sole Voting Power | | 0 shares 0% Number of |----------------------------------------------------------- Shares | 8 | Shared Voting Power Beneficially | | 64,408 shares 1.5% Owned By |----------------------------------------------------------- Each | 9 | Sole Dispositive Power Reporting | | 0 shares 0% Person |----------------------------------------------------------- With | 10 | Shared Dispositive Power | | 64,408 shares 1.5% - -------------------------------------------------------------------------------- 11 | Aggregate Amount Beneficially Owned By Each Reporting Person | 64,408 shares | - -------------------------------------------------------------------------------- 12 | Check Box if the Aggregate Amount in Row (11) excludes Certain Shares* |_| | - -------------------------------------------------------------------------------- 13 | Percent of Class Represented by Amount in Row (11) | 1.5% | - -------------------------------------------------------------------------------- 14 | Type of Reporting Person* | CO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! - 12 of 26- This statement, dated November 12, 1998, relates to the reporting persons' ownership of the common stock of Network - 1 Security Solutions, Inc. (the "Issuer"). ITEM 1. SECURITY AND ISSUER (a) Common Stock, $0.01 par value per share ("Common Stock"), (CUSIP No. 64121N109). (b) Series C Convertible Preferred Stock, $.01 par value, per share (the "Series C Preferred Stock"), may be converted at any time into an equal number of Common Stock, at the option of the holder, subject to adjustment in the event of a merger, consolidation, reclassification, or stock split, subdivision or combination of the Issuer's securities. The Series C Preferred Stock vote on all matters with the Common Stock, with each share of Series C Preferred Stock entitled to the number of votes equal to the number of shares of Common Stock into which it may be converted. The holders of Series C Preferred Stock are entitled to a liquidation preference of $5.25 per share plus any declared, but unpaid dividends, and may elect by a majority of the holders of the Series C Preferred Stock to receive such amount upon the sale of all or substantially all of the Issuer's assets or in the event of a merger into another entity. (c) Option, exercisable as of March 14, 1996, expiring March 14, 2006, entitling the holder thereof to purchase up to an aggregate of 31,040 shares of Common Stock, at $6.44 per share, (the "Advisory Option"). (d) Option, exercisable as of March 14, 1996, expiring March 14, 2006, entitling the holder thereof to purchase up to an aggregate of 18,624 shares of Common Stock, at $9.66 per share (the "1996 Advisory Option"). (e) Option, to purchase 20,000 shares of Common Stock, expiring October 22, 2008, entitling the holder thereof to purchase Common Stock at $6.00 per share, exercisable commencing on October 28, 1998. Options to purchase one-quarter of the total number of shares vests on each of October 28, 1998, January 28, 1999, April 28, 1999 and July 28, 1999 (the "1998 Directors Option"). (f) Network - 1 Security Solutions, Inc. 70 Walnut Street Wellesley Hills, MA 02481 (781) 239-8280 This statement relates to the shares of Common Stock of the Issuer. The information contained herein gives effect to a one-for-1.61083 reverse stock split of the Common Stock effected on July 20, 1998. - 13 of 26- ITEM 2. IDENTITY AND BACKGROUND 1. (a) Applewood Associates, L.P., a limited partnership organized under the laws of the State of New York ("Applewood"). (b) Address: c/o Applewood Capital Corp. 68 Wheatley Road Brookville, New York 11545 (c) Principal Business: Investments. (d) No. (e) No. 2. (a) Applewood Capital Corp., a corporation organized under the laws of the State of New York ("Applewood Capital"). (b) Address: c/o Barry Rubenstein 68 Wheatley Road Brookville, New York 11545 (c) Principal Business: Investments. (d) No. (e) No. Applewood Capital is a general partner of Applewood. 3. (a) Barry Rubenstein, a general partner of Applewood, an officer and director of Applewood Capital, a general partner of Woodland Venture Fund and Seneca Ventures, and a director of the Issuer. (b) Address: 68 Wheatley Road Brookville, New York 11545 (c) Principal Business: Investments. (d) No. (e) No. (f) Citizenship: United States Barry Rubenstein is the husband of Marilyn Rubenstein. 4. (a) Irwin Lieber, a general partner of Applewood and an officer and director of Applewood Corp. and a director of the Issuer. (b) Address: 767 Fifth Avenue New York, New York 10153 (c) Principal Business: Investments. (d) No. (e) No. (f) Citizenship: United States - 14 of 26- Irwin Lieber is the father of Seth Lieber and Jonathan Lieber. 5. (a) Barry Fingerhut, a general partner of Applewood and an officer and director of Applewood Capital. (b) Address: 767 Fifth Avenue New York, New York 10153 (c) Principal Occupation: Investments. (d) No. (e) No. (f) Citizenship: United States. 6. (a) Seth Lieber, a general partner of Applewood and an officer of Applewood Capital. (b) Address: 767 Fifth Avenue New York, New York 10153 (c) Principal Occupation: Investments. (d) No. (e) No. (f) Citizenship: United States. 7. (a) Jonathan Lieber, a general partner of Applewood and an officer of Applewood Capital. (b) Address: 767 Fifth Avenue New York, New York 10153 (c) Principal Occupation: Investments. (d) No. (e) No. (f) Citizenship: United States. 8. (a) Woodland Venture Fund, a New York limited partnership (the "Fund"). (b) Address: 68 Wheatley Road Brookville, New York 11545 (c) Principal Occupation: Investments. (d) No. (e) No. 9. (a) Seneca Ventures, a New York limited partnership ("Seneca"). (b) Address: 68 Wheatley Road Brookville, New York 11545 (c) Principal Occupation: Investments. (d) No. (e) No. - 15 of 26- 10. (a) Marilyn Rubenstein, an officer of Services. (b) Address: 68 Wheatley Road Brookville, New York 11545 (c) Principal Occupation: Investments. (d) No. (e) No. (f) Citizenship: United States. 11. (a) Woodland Services Corp.,a New York corporation and a general partner of the Fund and Seneca ("Services"). (b) Address: 68 Wheatley Road Brookville, New York 11545 (c) Principal Occupation: Investments. (d) No. (e) No. ITEM 3. Source and Amount of Funds or Other Consideration. From February 24, 1999 through May 14, 1998, Applewood purchased $1,900,000 principal amount notes and warrants to purchase 339,111 shares of Common Stock from the Issuer (the "Private Financing"). As part of the Private Financing, in consideration of Applewood's investment of $1,000,000 in May 1998, the Issuer, CMH Capital Management Corp. ("CMH") and Applewood entered into an advisory agreement, which amended an earlier advisory agreement between CMH and the Issuer. Pursuant to the new advisory agreement, the Issuer agreed to increase the cash fee payable to CMH, if the Issuer completes a merger or sale of all or substantially all of its assets at any time up to January 15, 2001, from 2% to 3% of the value of the consideration received by the Issuer. CMH agreed to share such consideration with Applewood and in addition agreed to the Lock-Up Agreement described below. On July 8, 1998, the Issuer entered into an exchange agreement with Applewood and other holders of outstanding warrants and options. Applewood exchanged warrants to purchase 339,111 shares of Common Stock at exercise prices ranging from $4.83 to $6.44 per share for 261,565 shares of Common Stock. The individual reporting persons obtained funds for the purchase of the securities from personal funds and other funds. Applewood obtained funds for the purchase of the securities from working capital and other funds. The amount of funds used in acquiring the securities are set forth below: - 16 of 26-