LABTEC INC /MA, SC 13D/A, 2000-02-10

LABTEC INC /MA
SC 13D/A, 2000-02-10
COMPUTER PERIPHERAL EQUIPMENT, NEC

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)

Labtec Inc.
-----------
(Name of Issuer)

Common Stock, par value $0.01
-----------------------------
(Title of Class of Securities)

505450 20 5
-----------
(CUSIP Number)

Rodger R. Krouse Mark S. Hirsch, Esq.
Sun Multimedia Advisors, Inc. Parker Chapin LLP
5355 Town Center Road, Suite 802 The Chrysler Building
Boca Raton, Florida 33486 405 Lexington Avenue
New York, New York 10174

(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)

January 1, 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 that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ]

<PAGE>

CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Sun Multimedia Partners, L.P.
- --------------------------------------------------------------------------------

2. Check the Appropriate Box if a Member of a Group (See Instructions)

(a) [ ]

(b) [ X ]
- --------------------------------------------------------------------------------

3. SEC Use Only

- --------------------------------------------------------------------------------

4. Source of Funds (See Instructions) OO

- --------------------------------------------------------------------------------

5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [ ]

- --------------------------------------------------------------------------------

6. Citizenship or Place of Organization Delaware

- --------------------------------------------------------------------------------

Number of 7. Sole Voting Power 1,936,860
Shares Bene- ----------------------------------------------------------
ficially Owned
By Each 8. Shared Voting Power 0
Reporting ----------------------------------------------------------
Person With
9. Sole Dispositive Power 1,936,860
----------------------------------------------------------

10. Shared Dispositive Power 0

- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
1,936,860

- --------------------------------------------------------------------------------

12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]

- --------------------------------------------------------------------------------

13. Percent of Class Represented by Amount in Row (11) 48.1%

- --------------------------------------------------------------------------------

14. Type of Reporting Person (See Instructions) PN

-2-

<PAGE>

CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Sun Multimedia Advisors, Inc.
- --------------------------------------------------------------------------------

2. Check the Appropriate Box if a Member of a Group (See Instructions)

(a) [ ]

(b) [ X ]
- --------------------------------------------------------------------------------

3. SEC Use Only

- --------------------------------------------------------------------------------

4. Source of Funds (See Instructions) OO

- --------------------------------------------------------------------------------

5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [ ]

- --------------------------------------------------------------------------------

6. Citizenship or Place of Organization Delaware

- --------------------------------------------------------------------------------

Number of 7. Sole Voting Power 0
Shares Bene- ----------------------------------------------------------
ficially Owned
By Each 8. Shared Voting Power 1,936,860
Reporting ----------------------------------------------------------
Person With
9. Sole Dispositive Power 0
----------------------------------------------------------

10. Shared Dispositive Power 1,936,860

- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
1,936,860

- --------------------------------------------------------------------------------

12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]

- --------------------------------------------------------------------------------

13. Percent of Class Represented by Amount in Row (11) 48.1%

- --------------------------------------------------------------------------------

14. Type of Reporting Person (See Instructions) CO

-3-
<PAGE>

CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Marc J. Leder
- --------------------------------------------------------------------------------

2. Check the Appropriate Box if a Member of a Group (See Instructions)

(a) [ ]

(b) [ X ]
- --------------------------------------------------------------------------------

3. SEC Use Only

- --------------------------------------------------------------------------------

4. Source of Funds (See Instructions) OO

- --------------------------------------------------------------------------------

5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [ ]

- --------------------------------------------------------------------------------

6. Citizenship or Place of Organization United States

- --------------------------------------------------------------------------------

10. Shared Dispositive Power 1,936,860

- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
1,936,860

- --------------------------------------------------------------------------------

12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]

- --------------------------------------------------------------------------------

13. Percent of Class Represented by Amount in Row (11) 48.1%

- --------------------------------------------------------------------------------

14. Type of Reporting Person (See Instructions) IN

-4-
<PAGE>

CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Rodger R. Krouse
- --------------------------------------------------------------------------------

2. Check the Appropriate Box if a Member of a Group (See Instructions)

(a) [ ]

(b) [ X ]
- --------------------------------------------------------------------------------

3. SEC Use Only

- --------------------------------------------------------------------------------

4. Source of Funds (See Instructions) OO

- --------------------------------------------------------------------------------

5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [ ]

- --------------------------------------------------------------------------------

6. Citizenship or Place of Organization United States

- --------------------------------------------------------------------------------

10. Shared Dispositive Power 1,936,860

- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
1,936,860

- --------------------------------------------------------------------------------

12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]

- --------------------------------------------------------------------------------

13. Percent of Class Represented by Amount in Row (11) 48.1%

- --------------------------------------------------------------------------------

14. Type of Reporting Person (See Instructions) IN

-5-
<PAGE>

CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

This Amendment No. 2 amends and supplements the statement on Schedule
13D dated October 21, 1998 (date of event which required filing), as amended
February 17, 1999 (the "Schedule 13D") filed by the reporting persons with
respect to the common stock, par value $.01 per share (the "Common Stock"), of
Labtec Inc., a Massachusetts corporation (the "Issuer"). This Amendment No. 2 is
being filed to report the acquisition by the Reporting Persons (as defined
below) of additional shares of Common Stock.

Item 1 of the Schedule 13D is hereby amended to read in its entirety as
follows:

ITEM 1. SECURITY AND ISSUER

The title of the class of equity securities to which this statement
relates is:

Common Stock, $.01 par value, of Labtec Inc., a Massachusetts
corporation ("Labtec").

The name of the issuer and address of its principal executive offices
are:

Labtec Inc.
1499 S.E. Tech Center Place, Suite 350
Vancouver, Washington 98683

Item 2 of the Schedule 13D is hereby amended to read in its entirety as
follows:

ITEM 2. IDENTITY AND BACKGROUND

(a) This statement is being filed jointly pursuant to Rule 13d-1(k)(1)
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), by
Sun Multimedia Partners, L.P., a Delaware limited partnership ("Partners"), Sun
Multimedia Advisors, Inc., a Delaware corporation ("Advisors"), Marc J. Leder
and Rodger R. Krouse (collectively, the "Reporting Persons"). Messrs. Leder and
Krouse may each be deemed to control Partners and Advisors, as each of Messrs.
Leder and Krouse owns 50% of the capital stock of Advisors, which is the general
partner of Partners.

Information with respect to each Reporting Person is given solely by
such Reporting Person, no Reporting Person has responsibility for the accuracy
or completeness of the information supplied by any other Reporting Person and
each Reporting Person agrees that this statement is filed on behalf of such
Reporting Person only.

The Reporting Persons may be deemed to constitute a "group" for the
purposes of Rule 13d-3 under the Exchange Act.

(b) The principal business address of each of the Reporting Persons is
5355 Town Center Road, Suite 802, Boca Raton, Florida 33486.

-6-

<PAGE>
CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

Partners and Advisors are each principally engaged in making
investments.

(d) During the past five years, none of the Reporting Persons and, to
the knowledge of the Reporting Persons, none of the executive officers or
directors of the Reporting Persons, if applicable, have been convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors).

(e) During the past five years, none of the Reporting Persons has been
a party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.

(f) Messrs. Leder and Krouse are each citizens of the United States.
Each of the other Reporting Persons was organized under the laws of the state of
Delaware.

Item 3 of the Schedule 13D is hereby amended to read in its entirety as
follows:

ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION

The aggregate amount of funds used in acquiring the 148,949 shares by
Sun Multimedia Partners, L.P. referred to in Item 4 is approximately $851,988,
which represented the conversion of Partners' interest in the principal amount
of an unsecured subordinated promissory note and its share in the accrued and
unpaid interest thereon for the period from September 1, 1999 through December
31, 1999.

Item 4 of the Schedule 13D is hereby amended to read in its entirety as
follows:

ITEM 4. PURPOSE OF TRANSACTION

Effective January 1, 2000, the Reporting Persons converted $824,062,
which represented their interest in the principal amount of an unsecured
subordinated promissory note due February 17, 2005, dated as of February 17,
1999 in the aggregate principal amount of $1,065,000, plus $27,926, which
represented their share in the accrued and unpaid interest on the principal
balance thereof for the period from September 1, 1999 through December 31, 1999,
into shares of Common Stock of the Issuer. The aforementioned conversion was
effected at a conversion price of $5.72 per share, resulting in the issuance of
an aggregate of 148,949 shares. The letter agreement concerning this transaction
is attached as Exhibit 1 to this Amendment No. 2.

-7-

<PAGE>
CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

Except as set forth herein, no Reporting Person has any present plans
or proposals that relate to or would result in (i) the acquisition of additional
securities of the Issuer; (ii) an extraordinary corporate transaction, such as a
merger, reorganization or liquidation of the Issuer; (iii) a sale or transfer of
a material amount of assets of the Issuer or any of its subsidiaries; (iv) any
change in the present Board of Directors or management of the Issuer, including
any plans or proposals to change the number or term of directors or to fill any
existing vacancies on the Board; (v) any material change in the present
capitalization or dividend policy of the Issuer; (vi) any other material change
in the Issuer's business or corporate structure; (vii) any changes in the
Issuer's charter, by-laws or instruments corresponding thereto or other actions
which may impede the acquisition of control of the Issuer by any person; (viii)
causing a class of securities of the Issuer to be delisted from a national
securities exchange or cease to be authorized to be quoted in an inter-dealer
quotation system of a registered national securities association; (ix) causing a
class of equity securities of the Issuer to become eligible for termination of
registration pursuant to Section 12(g)(4) of the Exchange Act; or (x) any action
similar to any of those enumerated above.

Item 5 of the Schedule 13D is hereby amended to read in its entirety as
follows:

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER

(a) The Reporting Persons may be deemed a group within the meaning of
Rule 13d-5 under the Exchange Act and, therefore, each of the Reporting Persons
may be deemed to be the beneficial owner, within the meaning of Rule 13d-3 of
the Exchange Act, of all the shares beneficially owned by each member of the
group, or an aggregate 1,936,860 shares of Common Stock of the Issuer. This
constitutes 48.1% of the outstanding shares of Common Stock of the Issuer.

(b) The following information concerns the nature of each Reporting
Person's beneficial ownership of the Common Stock of the Issuer:

Sole power to vote or direct the Shared power to vote or direct the
vote/sole power to dispose or direct vote/shared power to dispose or
Name the disposition direct the disposition
- ---- --------------- ----------------------
<S> <C> <C>
Sun Multimedia Partners, L.P. 1,936,860 0
Sun Multimedia Advisors, Inc. 0 1,936,860
Marc J. Leder 0 1,936,860
Rodger R. Krouse 0 1,936,860

</TABLE>

(c) The following is a schedule of the transactions of Sun
Multimedia Partners, L.P. in the Issuer's Common Stock effected during the past
60 days:

Date of Number of Shares
------- ----------------
Transaction Acquired Disposed of Price Nature of Transaction
- ----------- --------- ----------- ----- ---------------------
<S> <C> <C> <C> <C>
01/01/00 148,949 0 $5.72 Debt to equity conversion
</TABLE>

-8-

<PAGE>

CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

(d) No other person is known to have the right to receive, or the
power to direct the receipt of, dividends from, or the proceeds from the sale
of, the securities of the Issuer owned by the Reporting Persons.

(e) Not applicable.

ITEM 7. MATERIAL TO BE FILED AS EXHIBITS

Exhibit 1 - Letter Agreement between the Issuer and Sun Multimedia
Partners, L.P. *

- --------------------------
* Filed with this Amendment No. 2.

-9-

<PAGE>

CUSIP No. 505450 20 5
- --------------------------------------------------------------------------------

SIGNATURE

After reasonable inquiry and to the best of the undersigneds' knowledge
and belief, the undersigned certify that the information set forth in this
statement is true, complete and correct.

Dated: February 7, 2000

SUN MULTIMEDIA PARTNERS, L.P.
By: Sun Multimedia Advisors, Inc.
its General Partner

By: /s/ Rodger R. Krouse
------------------------
Rodger R. Krouse
President and Treasurer

SUN MULTIMEDIA ADVISORS, INC.

By: /s/ Rodger R. Krouse
------------------------
Rodger R. Krouse
President and Treasurer

/s/ Marc J. Leder
------------------------------
Marc J. Leder

/s/ Rodger R. Krouse
-------------------------------
Rodger R. Krouse

-10-

Exhibit 1

LABTEC INC.
1499 SE Tech Center Drive
Vancouver, Washington 98683

December 1, 1999

Sun Multimedia Partners, L.P.
5355 Town Center Road
Suite 802
Boca Raton, FL 33486
Attn: Marc J. Leder

Gentlemen:

This confirms our agreement that you will convert $824,062,
which represents your 77.37675% interest in the principal amount of the
Unsecured Subordinated Promissory Note due February 17, 2005, dated as of
February 17, 1999 in the aggregate principal amount of $1,065,000, plus $27,926,
which represents your share in the accrued and unpaid interest on the principal
balance thereof for the period from September 1, 1999 through December 31, 1999,
into shares of common stock of Labtec Inc. Such conversion shall be deemed
effective as of January 1, 2000. We each hereby agree that the aforementioned
conversion will be effected at a conversion price of $5.72 per share, resulting
in the issuance of an aggregate of 148,949 shares on January 1, 2000.

In addition, we will endeavor to propose to the Board of
Directors that, upon your written request at any time from the date hereof, we
will file within 15 days of such request a registration statement on Form S-3
under the Securities Act of 1933, as amended, if such form is available for use,
covering the resale of all of the shares of Labtec Inc. common stock received by
you pursuant to this conversion and that we shall use our best efforts to have
such registration statement declared effective as soon as possible after the
filing thereof.

Kindly acknowledge your agreement to the foregoing by signing
a copy of this agreement in the space provided below and returning it to the
undersigned.

Sincerely,

LABTEC INC.

By: /s/ Robert G. Wick
-------------------------------------
Robert G. Wick
President and Chief Executive Officer
AGREED TO:

SUN MULTIMEDIA PARTNERS, L.P.

By: /s/ Marc J. Leder
--------------------------
Marc J. Leder
Sun Multimedia Partners, L.P.