SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
THEGLOBE.COM, INC.
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(Name of Issuer)
COMMON STOCK, PAR VALUE $0.001 PER SHARE
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(Title of Class of Securities)
88335R101
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(CUSIP Number)
DONALD E. THOMPSON, II, ESQ.
PROSKAUER ROSE LLP
2255 GLADES ROAD, SUITE 340W
BOCA RATON, FLORIDA 33431
(561) 241-7400
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(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
SEPTEMBER 1, 2004
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box
|_|
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.
* 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 the disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 2 OF 23
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NAME OF REPORTING PERSONS Dancing Bear Investments, Inc.
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS __________
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
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 Florida
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER -0-
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER 8,303,148
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER -0-
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER 8,303,148
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,303,148
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 5.3%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* CO
------------ ---------------------------------------------------------------------------------------
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 3 OF 23
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NAME OF REPORTING PERSONS E&C Capital Partners, LLLP
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS ____
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
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 Florida
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER -0-
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER 61,168,781 (1)
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER -0-
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER 32,469,012 (2)
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 61,168,781 (1)(2)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 36.0%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* PN
------------ ---------------------------------------------------------------------------------------
(1)(2) Please see the next page
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 4 OF 23
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(1) Includes 14,349,869 shares of common stock and 143,499 shares of Series H
Preferred Stock (convertible in the circumstances described below into an
aggregate of approximately 14,349,900 shares of common stock) (the "Preferred
Stock") over which E&C holds an irrevocable proxy (the "Proxy Shares"). The
proxy was granted to E&C pursuant to a Stockholders' Agreement dated September
1, 2004, by and among Paul Soltoff, Eric Obeck, Donald Gould, Harry Greene and
Irv and Nadine Brechner (collectively, the "Other Stockholders"), the Issuer,
Dancing Bear Investments, Inc. ("DBI"), E&C, Michael S. Egan ("Egan") and Edward
Cespedes ("Cespedes" and together with DBI, E&C and Egan, the "Existing
Stockholders")(the "Stockholders' Agreement"). Except as provided by law, the
Preferred Stock will vote with the holders of common stock on all matters on an
"as-converted" basis, other than the increase in the authorized common stock
described above as to which it will not vote. The Preferred Stock will
automatically convert into shares of theglobe's common stock on a 1 for 100
basis at such time as the Issuer files an amendment to its certificate of
incorporation with the Delaware Secretary of State's Office to increase its
authorized shares of common stock from 200,000,000 to at least 300,000,000 (the
"Capital Amendment"). Pursuant to the terms of the Stockholders' Agreement, E&C
was granted an irrevocable proxy to vote the foregoing Proxy Shares on all
matters (including the election of directors) other than with respect to certain
potential affiliated transactions involving Messrs. Egan or Cespedes, the
Issuer's President.
(2) Does not include Proxy Shares and certain other securities of the Issuer
which may then be owned by the Other Stockholders which the Existing
Stockholders may cause the Other Stockholders to sell pursuant to a "drag-along"
right granted to it and its affiliates pursuant to the Stockholders' Agreement.
The circumstances under which the Existing Stockholders may cause such
drag-along are beyond its present control and occur only in the event of certain
"Major Sales" or "Approved Sales" (as defined in the Stockholders' Agreement)
involving the Issuer.
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 5 OF 23
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NAME OF REPORTING PERSONS Michael S. Egan
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
3 SEC USE ONLY
------------ ---------------------------------------------------------------------------------------
4 SOURCE OF FUNDS* PF
------------ ---------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER 4,370,666 (1)
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER 83,273,348 (2)
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER 4,370,666 (1)
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER 54,573,579 (2)
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 87,644,014 (3)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 50.4%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* IN
------------ ---------------------------------------------------------------------------------------
(1)(2)(3) Please see the next page
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 6 OF 23
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(1) Represents (i) 3,840,211 shares issuable upon the exercise of certain
options which are either now exercisable or exercisable within the next 60 days
by Mr. Egan individually, and (ii) 530,455 shares of common stock owned directly
by Mr. Egan.
(2) Represents (i) 8,303,148 shares of common stock owned by Dancing Bear
Investments, Inc., (ii) 32,469,012 shares of common stock owned by E&C Capital
Partners, LLLP, (iii) an aggregate of 10,000,000 shares of common stock which
are owned by certain trusts of which Mr. Egan is the trustee, (iv) 56,000 shares
of the common stock owned by certain trusts of which Mr. Egan is the trustee;
(v) warrants to acquire 204,082 shares of common stock, subject to certain
anti-dilution adjustment mechanisms, owned by Mr. Egan and his spouse as tenants
in the entirety; (vi) 14,349,869 shares of common stock and 143,499 shares of
Preferred Stock (convertible upon the occurrence of the Capital Amendment into
an aggregate of approximately 14,349,900 shares of common stock) over which E&C
holds an irrevocable proxy pursuant to the Stockholders' Agreement; and(vii)
3,527,337 shares owned by Mr. Egan's spouse, of which Mr. Egan disclaims
beneficial ownership. As to the shares identified in clause (v) above, Mr. Egan
shares such beneficial ownership with his spouse. Does not include Proxy Shares
and certain other securities of the Issuer which may then be owned by the Other
Stockholders which the Existing Stockholders may cause the Other Stockholders to
sell pursuant to a "drag-along" right granted to it and its affiliates pursuant
to the Stockholders' Agreement. The circumstances under which the Existing
Stockholders may cause such drag-along are beyond its present control and occur
only in the event of certain "Major Sales" or "Approved Sales" (as defined in
the Stockholders' Agreement) involving the Issuer.
(3) Represents the sum of the items enumerated in footnotes (1) and (2) above.
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 7 OF 23
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NAME OF REPORTING PERSONS Edward Cespedes
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
3 SEC USE ONLY
------------ ---------------------------------------------------------------------------------------
4 SOURCE OF FUNDS* PF
------------ ---------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER 2,460,211 (1)
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER -0-
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER 2,460,211 (1)
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER -0-
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,460,211 (1)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 1.6%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* IN
------------ ---------------------------------------------------------------------------------------
(1) Consists entirely of options to acquire shares of Common Stock exercisable
within the next 60 days. Does not include shares owned by E&C in which Mr.
Cespedes holds a minority interest of ten percent.
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 8 OF 23
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NAME OF REPORTING PERSONS Paul Soltoff
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
3 SEC USE ONLY
------------ ---------------------------------------------------------------------------------------
4 SOURCE OF FUNDS* PF
------------ ---------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|_|
------------ ---------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER -0- (1)
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER -0- (1)
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER 10,435,958 (2)
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER -0- (3)
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,435,958 (2)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 6.5%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* IN
------------ ---------------------------------------------------------------------------------------
(1)(2)(3) Please see the next page
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 9 OF 23
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(1) Pursuant to the Stockholders' Agreement, Mr. Soltoff granted an irrevocable
proxy to E&C to vote his shares on all matters (including the election of
directors) other than with respect to potential affiliated transactions
involving Messrs. Egan or Cespedes.
(2) Includes: (i) 5,091,600 shares of Common Stock issuable upon the conversion
of the Series H Preferred Stock; and (ii) 238,669 shares of Common Stock
issuable upon the exercise of options which are exercisable within the next 60
days.
(3) Does not reflect as having shared disposition of certain securities of the
Issuer which may then be owned by Mr. Soltoff which the Existing Stockholders
may cause Mr. Soltoff to sell pursuant to a "drag-along" right granted to the
Existing Stockholders pursuant to the Stockholders' Agreement. The circumstances
under which the Existing Stockholders may cause such drag-along are beyond its
present control and occur only in the event of certain "Major Sales" or
"Approved Sales" (as defined in the Stockholders' Agreement) involving the
Issuer.
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 10 OF 23
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NAME OF REPORTING PERSONS Eric Obeck
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
3 SEC USE ONLY
------------ ---------------------------------------------------------------------------------------
4 SOURCE OF FUNDS* PF
------------ ---------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|_|
------------ ---------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER -0- (1)
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER -0- (1)
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER 4,823,718 (2)
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER -0- (3)
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,823,718 (2)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 3.1%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* IN
------------ ---------------------------------------------------------------------------------------
(1)(2)(3) Please see the next page
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 11 OF 23
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(1) Pursuant to the Stockholders' Agreement, Mr. Obeck granted an irrevocable
proxy to E&C to vote his shares on all matters (including the election of
directors) other than with respect to potential affiliated transactions
involving Messrs. Egan or Cespedes.
(2) Includes: (i) 2,314,570 shares of Common Stock issuable upon the conversion
of the Series H Preferred Stock; and (ii) 194,577 shares of Common Stock
issuable upon the exercise of options which are exercisable within the next 60
days.
(3) Does not reflect as having shared disposition of certain securities of the
Issuer which may then be owned by Mr. Obeck which the Existing Stockholders may
cause Mr. Obeck to sell pursuant to a "drag-along" right granted to the Existing
Stockholders pursuant to the Stockholders' Agreement. The circumstances under
which the Existing Stockholders may cause such drag-along are beyond its present
control and occur only in the event of certain "Major Sales" or "Approved Sales"
(as defined in the Stockholders' Agreement) involving the Issuer.
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 12 OF 23
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NAME OF REPORTING PERSONS Donald Gould
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
3 SEC USE ONLY
------------ ---------------------------------------------------------------------------------------
4 SOURCE OF FUNDS* PF
------------ ---------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|_|
------------ ---------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER -0- (1)
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER -0- (1)
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER 4,653,838 (2)
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER -0- (3)
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,653,838 (2)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 2.9%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* IN
------------ ---------------------------------------------------------------------------------------
(1)(2)(3) Please see the next page
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 13 OF 23
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(1) Pursuant to the Stockholders' Agreement, Mr. Gould granted an irrevocable
proxy to E&C to vote his shares on all matters (including the election of
directors) other than with respect to potential affiliated transactions
involving Messrs. Egan or Cespedes.
(2) Includes: (i) 2,314,570 shares of Common Stock issuable upon the conversion
of the Series H Preferred Stock; and (ii) 24,697 shares of Common Stock issuable
upon the exercise of options which are exercisable within the next 60 days.
(3) Does not reflect as having shared disposition of certain securities of the
Issuer which may then be owned by Mr. Gould which the Existing Stockholders may
cause Mr. Gould to sell pursuant to a "drag-along" right granted to the Existing
Stockholders and its affiliates pursuant to the Stockholders' Agreement. The
circumstances under which the Existing Stockholders may cause such drag-along
are beyond its present control and occur only in the event of certain "Major
Sales" or "Approved Sales" (as defined in the Stockholders' Agreement) involving
the Issuer.
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 14 OF 23
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------------ ---------------------------------------------------------------------------------------
NAME OF REPORTING PERSONS Harry Greene
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
3 SEC USE ONLY
------------ ---------------------------------------------------------------------------------------
4 SOURCE OF FUNDS* PF
------------ ---------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|_|
------------ ---------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER -0- (1)
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER -0- (1)
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER 4,658,338 (2)
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER -0- (3)
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,658,338 (2)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 3.0%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* IN
------------ ---------------------------------------------------------------------------------------
(1)(2)(3) Please see the next page
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 15 OF 23
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(1) Pursuant to the Stockholders' Agreement, Mr. Greene granted an irrevocable
proxy to E&C to vote his shares on all matters (including the election of
directors) other than with respect to potential affiliated transactions
involving Messrs. Egan or Cespedes.
(2) Includes: (i) 2,314,570 shares of Common Stock issuable upon the conversion
of the Series H Preferred Stock; and (ii) 29,197 shares of Common Stock issuable
upon the exercise of options which are exercisable within the next 60 days.
(3) Does not reflect as having shared disposition of certain securities of the
Issuer which may then be owned by Mr. Greene which the Existing Stockholders may
cause Mr. Greene to sell pursuant to a "drag-along" right granted to the
Existing Stockholders and its affiliates pursuant to the Stockholders'
Agreement. The circumstances under which the Existing Stockholders may cause
such drag-along are beyond its present control and occur only in the event of
certain "Major Sales" or "Approved Sales" (as defined in the Stockholders'
Agreement) involving the Issuer.
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 16 OF 23
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------------ ---------------------------------------------------------------------------------------
NAME OF REPORTING PERSONS Irv and Nadine Brechner
1
S.S. or I.R.S. IDENTIFICATION NO. of ABOVE PERSONS
------------ ---------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
------------ ---------------------------------------------------------------------------------------
3 SEC USE ONLY
------------ ---------------------------------------------------------------------------------------
4 SOURCE OF FUNDS* PF
------------ ---------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|_|
------------ ---------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
-------------------------------- --------- ---------------------------------------------------------
7 SOLE VOTING POWER 5,000 (1)
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------- --------- ---------------------------------------------------------
8 SHARED VOTING POWER -0- (1)
-------------------------------- --------- ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER 4,658,838 (2)
-------------------------------- --------- ---------------------------------------------------------
10 SHARED DISPOSITIVE POWER -0- (3)
------------ ---------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,658,838 (2)
------------ ---------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [_]
------------ ---------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 3.0%
------------ ---------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON* IN
------------ ---------------------------------------------------------------------------------------
(1)(2)(3) Please see the next page
SCHEDULE 13D
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CUSIP NO. 88335R101 PAGE 17 OF 23
--------------------------- --------------------------
(1) Pursuant to the Stockholders' Agreement, the Brechners granted an
irrevocable proxy to E&C to vote his shares on all matters (including the
election of directors) other than with respect to potential affiliated
transactions involving Messrs. Egan or Cespedes.
(2) Includes: (i) 2,314,570 shares of Common Stock issuable upon the conversion
of the Series H Preferred Stock; and (ii) 24,697 shares of Common Stock issuable
upon the exercise of options which are exercisable within the next 60 days.
(3) Does not reflect as having shared disposition of certain securities of the
Issuer which may then be owned by the Brechners which the Existing Stockholders
may cause the Brechners to sell pursuant to a "drag-along" right granted to the
Existing Stockholders pursuant to the Stockholders' Agreement. The circumstances
under which the Existing Stockholders may cause such drag-along are beyond its
present control and occur only in the event of certain "Major Sales" or
"Approved Sales" (as defined in the Stockholders' Agreement) involving the
Issuer.
PAGE 18 OF 23
ITEM 1. SECURITY AND ISSUER
This Schedule 13D ("Schedule 13D") relates to common stock, par value $.001
("Common Stock"), of theglobe.com, inc., a Delaware corporation (the "Issuer" or
the "Company"). The principal executive offices of the Issuer are located at 110
East Broward Blvd., Suite 1400, Fort Lauderdale, Florida 33301.
ITEM 2. IDENTITY AND BACKGROUND
(a)-(c) This Schedule 13D is filed on a joint basis pursuant to Rule 13d-1(k) by
Dancing Bear Investments, Inc., a Florida corporation ("DBI"), E&C Capital
Partners, LLLP, a Florida limited liability limited partnership ("E&C"), Michael
S. Egan ("Egan"), Edward Cespedes ("Cespedes" and together with DBI, E&C and
Egan, the "Existing Stockholders"), Paul Soltoff ("Soltoff"), Eric Obeck
("Obeck"), Donald Gould ("Gould"), Harry Greene ("Greene"), and Irv and Nadine
Brechner ("Brechner", and together with Messrs. Soltoff, Obeck, Gould and
Greene, the "Other Stockholders") (each a "Reporting Person"). The address of
each of the Existing Stockholders is 110 East Broward Boulevard, 14th Floor,
Fort Lauderdale, Florida 33301 and the address of each of the Other Stockholders
is 877 Executive Center Drive, Suite 300, St. Petersburg, Florida 33702. Mr.
Egan is the Chairman and Chief Executive Officer of the Issuer and a private
investor. Mr. Egan has a controlling interest in both DBI and E&C. Mr. Cespedes
is the President and a director of the Issuer, Mr. Soltoff is a director of the
Issuer and each of the Other Stockholders are officers of SendTec, Inc., a
subsidiary of the Issuer.
(d)-(e) During the last five years, none of the Reporting Persons have been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors), or been a party to a civil proceeding of a judicial or
administrative body of competent decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
(f) Each of the individual Reporting Persons is a citizen of the United States.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On September 1, 2004, the Issuer closed an Agreement and Plan of Merger whereby
it acquired via a merger transaction, SendTec, Inc. ("SendTec") (the "Merger").
Except for certain shares acquired within the last 60 days as noted in Item 5
(c) below, all of the securities of the Issuer owned by the Other Stockholders
were acquired in connection with the Merger in consideration of the securities
which such Stockholders formerly owned in SendTec.
ITEM 4. PURPOSE OF TRANSACTION
As part of the Merger, the Reporting Persons entered into a Stockholders'
Agreement dated as of September 1, 2004 (the "Stockholders' Agreement"). This
Schedule 13D relates solely to certain rights granted to E&C pursuant to the
Stockholders' Agreement, a copy of which is included in this filing as Exhibit
2. Except as expressly provided herein with respect to certain of the Existing
Stockholders, there are no other relationships or understandings with respect to
the vote or disposition of any of the securities of the Issuer among any of the
Reporting Persons nor does any Reporting Person have any pecuniary interest in
PAGE 19 OF 23
any of the securities of the Issuer of another Reporting Person. Pursuant to the
terms of the Stockholders' Agreement, E&C was granted an irrevocable proxy to
vote 14,349,869 shares of common stock and 143,499 shares of Series H Preferred
Stock (convertible in the circumstances described below into an aggregate of
approximately 14,349,900 shares of common stock) (the "Preferred Stock"). Except
as provided by law, the Preferred Stock will vote with the holders of common
stock on all matters on an "as-converted" basis, other than the increase in the
authorized common stock described above as to which it will not vote. The
Preferred Stock will automatically convert into shares of theglobe's common
stock on a 1 for 100 basis at such time as the Issuer files an amendment to its
certificate of incorporation with the Delaware Secretary of State's Office to
increase its authorized shares of common stock from 200,000,000 to at least
300,000,000 (the "Capital Amendment"). Pursuant to the terms of the
Stockholders' Agreement, E&C may vote the foregoing Proxy Shares on all matters
(including the election of directors) other than with respect to certain
potential affiliated transactions involving Messrs. Michael Egan or Edward
Cespedes, the Issuer's President.
The Stockholders' Agreement also grants other rights to various parties to the
agreement, including:
(i) granting the Existing Stockholders the right to cause the Other
Stockholders to sell the Proxy Shares and certain other securities of the Issuer
which may then be owned by them pursuant to a "drag-along" right. The
circumstances under which the Existing Stockholders may cause such drag-along
are beyond its present control and occur only in the event of certain "Major
Sales" or "Approved Sales" (as defined in the Stockholders' Agreement) involving
the Issuer;
(ii) granting the Other Stockholders the a preemptive right to
participate in certain future sales of securities by the Issuer;
(iii) granting the Other Stockholders the right to participate on
certain major sales (generally, at least 20% of their holdings) of the common
stock owned by the Existing Stockholders; and
(iv) granting the Existing Stockholders a right of first refusal on
certain major dispositions (involving at least 10 million shares) of the Other
Stockholders' shares.
The Other Stockholders also agreed not to transfer any of their securities of
the Issuer for a period of one year, with certain exceptions. The Stockholders'
Agreement has a term of 5 years subject to earlier termination in certain
events, including the occurrence of a Change of Control, as defined, or the
reduction of the aggregate holdings of the Existing Stockholders or the Other
Stockholders below certain stated thresholds.
Mr. Egan (whom controls E&C) is, together with his affiliates, the largest
stockholder of the Issuer and the Chairman and Chief Executive Officer of the
Issuer. The purpose of the grant of the Proxy was to continue and enhance Mr.
Egan's influence over the direction and policies of the Issuer. Other than the
transactions contemplated by the Merger and as reported by the Issuer pursuant
to its Report on From 8-K dated September 7, 2004, the Reporting Persons are not
aware of any plans or proposals which the Reporting Persons may have which
relate to or would result in:
PAGE 20 OF 23
(a) the acquisition by any person of additional securities of the Issuer or the
disposition of securities of the Issuer.
(b) an extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving the Issuer or any of its subsidiaries.
(c) a sale or transfer of a material amount of assets of the Issuer or of any of
its subsidiaries.
(d) any other material change in the Issuer's business or corporate structure.
(e) any material change in the present capitalization or dividend policy of the
Issuer other than as described herein.
(f) any other material changes in the Issuer's business or corporate structure.
(g) any changes in the Issuer's charter, bylaws or instruments corresponding
thereto or other actions which may impede the acquisition or control of the
Issuer by any person.
(h) the securities of the Issuer to be delisted from a national securities
exchange or to cease to be authorized or to be quoted in an inter-dealer
quotation system of a registered national securities association.
(i) in a class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Act.
(j) any action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) (b) The amounts and percentages of Common Stock set forth in this Item 5 are
based on (i) the shares beneficially owned by DBI, E&C and Mr. Egan, as set
forth in Item 3 and (ii) 155,460,267 shares of Common Stock outstanding as of
September 2, 2004.
Amount beneficially owned:
8,303,148 with respect to DBI
61,168,781 with respect to E&C
87,644,014 with respect to Mr. Egan
2,460,211 with respect to Mr. Cespedes
10,435,958 with respect to Mr. Soltoff
4,823,718 with respect to Mr. Obeck
4,653,838 with respect to Mr. Gould
4,658,698 with respect to Mr. Greene
4,658,338 with respect to Irv and Nadine Brechner
PAGE 21 OF 23
Percent of class:
5.3% with respect to DBI
36.0% with respect to E&C
50.4% with respect to Mr. Egan
1.6% with respect to Mr. Cespedes
6.5% with respect to Mr. Soltoff
3.1% with respect to Mr. Obeck
2.9% with respect to Mr. Gould
3.0% with respect to Mr. Greene
3.0% with respect to Irv and Nadine Brechner
Number of shares as to which the person has:
sole power to vote or to direct the vote:
-0- with respect to DBI
-0- with respect to E&C
4,370,666 with respect to Mr. Egan
2,460,211 with respect to Mr. Cespedes
-0- with respect to Mr. Soltoff
-0- with respect to Mr. Obeck
-0- with respect to Mr. Gould
-0- with respect to Mr. Greene
-0- with respect to Irv and Nadine Brechner
shared power to vote or to direct the vote:
8,303,148 with respect to DBI
61,168,781 with respect to E&C
83,273,348 with respect to Mr. Egan
-0- with respect to Mr. Cespedes
-0- with respect to Mr. Soltoff
-0- with respect to Mr. Obeck
-0- with respect to Mr. Gould
-0- with respect to Mr. Greene
-0- with respect to Irv and Nadine Brechner
sole power to dispose or to direct the disposition of:
-0- with respect to DBI
-0- with respect to E&C
4,370,666 with respect to Mr. Egan
2,460,211 with respect to Mr. Cespedes
10,435,958 with respect to Mr. Soltoff
4,823,718 with respect to Mr. Obeck
4,653,838 with respect to Mr. Gould
4,658,698 with respect to Mr. Greene
4,658,338 with respect to Irv and Nadine Brechner
PAGE 22 OF 23
shared power to dispose or to direct the disposition of:
8,303,148 with respect to DBI
32,469,012 with respect to E&C
54,573,579 with respect to Mr. Egan
-0- with respect to Mr. Cespedes
-0- with respect to Mr. Soltoff
-0- with respect to Mr. Obeck
-0- with respect to Mr. Gould
-0- with respect to Mr. Greene
-0- with respect to Irv and Nadine Brechner
(c) On July 7, 2004, Mr. and Mrs. Brechner acquired 5,000 shares of the common
stock on the open market at a price of $.27 per share.
(d) None
(e) Not applicable
PAGE 23 OF 23
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER.
Other than as set forth in Item 4 above, none of the Reporting Persons is a
party to any contracts, arrangements, understandings or relationships of the
nature described by item 6 nor are any of the securities pledged or otherwise
subject to a contingency the occurrence of which would give another person
voting power or investment power over such securities.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
1. Joint Filing Agreement
2. Stockholders' Agreement dated September 1, 2004
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this Schedule 13D is true, complete
and correct.
/s/ Michael S. Egan
----------------------------------
Michael S. Egan
Dancing Bear Investments, Inc.
By: /s/ Michael S. Egan
--------------------------------
Name: Michael S. Egan
Title: President
E & C Capital Partners, LLLP
By: E & C Capital Ventures, Inc.
By: /s/ Edward A. Cespedes
--------------------------------
Print Name: Edward A. Cespedes
Title: President
/s/ Edward Cespedes
----------------------------------
Edward Cespedes
/s/ Paul Soltoff
----------------------------------
Paul Soltoff
/s/ Eric Obeck
----------------------------------
Eric Obeck
/s/ Donald Gould
----------------------------------
Donald Gould
/s/ Harry Greene
----------------------------------
Harry Greene
/s/ Irv Brechner
----------------------------------
Irv Brechner
/s/ Nadine Brechner
----------------------------------
Nadine Brechner