UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
EXECUTONE INFORMATION SYSTEMS, INC.
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(Name of issuer)
COMMON STOCK
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(Title of class of securities)
301607107
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(CUSIP number)
Scott A. Kaniewski Robert H. Friedman, Esq.
Watermark Investments Limited, LLC Olshan Grundmam Frome Rosenzweig
77 West Wacker Drive, Suite 4120 & Wolosky LLP
Chicago, Illinois 60601 505 Park Avenue
(312) 920-1570 New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
April 6, 1999
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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 / /.
Check the following box if a fee is being paid with the statement o. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7).
NOTE. Six copies of this statement, including all exhibits, should be filed with
the Commission. SEE Rule 13d-1(a) 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
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).
<PAGE>
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CUSIP No. 301607107 13D Page 2 of 7 Pages
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================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Watertone Holdings, L.P.
06-1453057
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO(1)
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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 OR ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 8,220,380(2)
OWNED BY ---------------------------------------------------------------
EACH
REPORTING
PERSON WITH
8 SHARED VOTING POWER
Not Applicable
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
8,220,380(2)
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
Not Applicable
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
8,220,380(2)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.0%
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14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Watertone Holdings LP ("Watertone") was issued shares of Series A
Cumulative Convertible Preferred Stock and Series B Cumulative
Convertible Preferred Stock by the Issuer in exchange for Watertone's
interest in Unistar Gaming Corp. These preferred shares were
convertible into shares of the Issuer's common stock.
(2) 8,220,380 shares of common stock of the Issuer were issued to Watertone
upon conversion of shares of Series A Cumulative Convertible Preferred
Stock and Series B Cumulative Convertible Preferred Stock it held.
<PAGE>
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CUSIP No. 301607107 13D Page 3 of 7 Pages
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================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Watermark Investments Limited, LLC
65-0762460
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO(1)
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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 OR ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 8,220,380(2)
OWNED BY
EACH ---------------------------------------------------------------
REPORTING
PERSON WITH
---------------------------------------------------------------
8 SHARED VOTING POWER
Not Applicable
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
8,220,380(2)
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
Not Applicable
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
8,220,380(2)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.0%
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14 TYPE OF REPORTING PERSON*
OO(3)
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Watertone was issued shares of Series A Cumulative Convertible
Preferred Stock and Series B Cumulative Convertible Preferred Stock by
the Issuer in exchange for Watertone's interest in Unistar Gaming Corp.
These preferred shares were convertible into shares of the Issuer's
common stock.
(2) Watermark Investments Limited, LLC ("Watermark") is the general partner
of Watertone. Consequently, Watermark is deemed to beneficially own the
8,220,380 shares of the Issuer's common stock held by Watertone.
(3) Watermark is a Delaware limited liability Company.
<PAGE>
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CUSIP No. 301607107 13D Page 4 of 7 Pages
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================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert A. Berman
###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO(1)
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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 OR ORGANIZATION
United States Citizen
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 8,220,380(2)
OWNED BY
EACH
REPORTING
PERSON WITH
---------------------------------------------------------------
8 SHARED VOTING POWER
Not Applicable
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
8,220,380(2)
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
Not Applicable
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
8,220,380(2)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.0%
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14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Watertone was issued shares of Series A Cumulative Convertible
Preferred Stock and Series B Cumulative Convertible Preferred Stock by
the Issuer in exchange for Watertone's interest in Unistar Gaming Corp.
These preferred shares were convertible into shares of the Issuer's
common stock.
(2) Mr. Berman is the sole manager of Watermark, the general partner of
Watertone. Consequently, Mr. Berman is deemed to beneficially own the
8,220,380 shares of the Issuer's common stock held by Watertone.
<PAGE>
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CUSIP No. 301607107 13D Page 5 of 7 Pages
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Item 1. SECURITY AND ISSUER
The title of the class of equity security to which this
statement relates is the Common Stock of Executone Information Systems, Inc., a
Virginia corporation ("Executone"). The principal executive office of Executone
is located at 478 Wheelers Farms Road, Milford, CT 06460.
Item 2. IDENTITY AND BACKGROUND
(a) This statement is being filed by Watertone Holdings LP, a
Delaware limited partnership ("Watertone"), Watermark Investments Limited, LLC,
a Delaware limited liability company ("Watermark") and Robert A. Berman.
Watermark is the sole general partner of Watertone. Robert A. Berman is the sole
manager of Watermark.
(b) Watertone has a business address at 77 West Wacker Drive,
Suite 4120, Chicago, Illinois 60601. Watermark has a business address at 77 West
Wacker Drive, Suite 4120, Chicago, Illinois 60601. Mr. Berman has a business
address at 450 Park
Avenue, Suite 2603, New York, New York 10022.
(c) Watertone's principal business is investment holdings.
Watermark's principal business is investment holdings.
Mr. Berman is the sole manager of Watermark.
(d) During the last five years, neither Watertone, Watermark
nor Mr. Berman has been convicted in a criminal proceeding.
(e) During the last five years, neither Watertone, Watermark
nor Mr. Berman has been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction subjecting him 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) Watertone is a Delaware limited partnership. Watermark is
a Delaware limited liability company. Mr. Berman is a citizen of the United
States of America.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On December 19 1995, Executone acquired 100% of the
outstanding common stock of Unistar Gaming Corp. ("Unistar"). Executone issued
shares of Series A Cumulative Convertible Preferred Stock and Series B
Cumulative Convertible Preferred Stock to Watertone in exchange for Watertone's
interest in Unistar.
<PAGE>
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CUSIP No. 301607107 13D Page 6 of 7 Pages
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Item 4. PURPOSE OF TRANSACTION.
Watertone intends to hold the acquired shares of common stock
for investment purposes and not to facilitate a possible acquisition of control
of Executone. Notwithstanding the foregoing, however, depending on the pricing,
availability of the common stock, future developments at and pertaining to
Executone, other investment and business opportunities available to Watertone,
and general economic conditions, Watertone may determine to purchase, in the
open market, in privately negotiated transactions, or otherwise, additional
shares of common stock or otherwise seek to obtain control of Executone. In
addition, depending on the factors described above, Watertone also may determine
to sell in the open market, in privately negotiated transactions, or otherwise,
all or part of their shares of Executone common stock.
Item 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of the date hereof, Watertone holds 8,220,380 shares of
Executone common stock. Watermark and Robert Berman are both attributed
beneficial ownership to the same 8,220,380 shares of Executone common stock.
Such shares constitute 13.0% of the shares of Executone common stock outstanding
as of the date hereof. As of the date hereof there were 63,187,165 shares of
Executone common stock outstanding.
(b) Robert Berman, as the sole manager of Watermark,
Watertone's general partner, has sole power to vote and to dispose of all of the
shares of Executone common stock referred to in paragraph (a) above.
(c) See "Item 3. Source and Amount of Funds and Other
Consideration" above for information as to shares of Executone common stock
recently acquired or disposed of by Watertone. Except as disclosed therein,
Watertone has not acquired, within the past 60 days, any shares of Executone
common stock.
(d) No person, other than Watertone, Watermark or Robert
Berman, has the right to receive or the power to direct the receipt of dividends
from, or the proceeds from the sale of, the shares of Executone common stock
that are the subject of this Schedule 13D.
Item 7. EXHIBITS TO AMENDMENT NO. 3 TO SCHEDULE 13D.
--------------------------------------------
1. Joint Filing Agreement, dated as of April 9, 1999, by and
among Watertone, Watermark and Robert Berman.
<PAGE>
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CUSIP No. 301607107 13D Page 7 of 7 Pages
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: April 9, 1999
WATERTONE HOLDINGS LP
By: WATERMARK INVESTMENTS
LIMITED, LLC, its General
Partner
By: /S/ ROBERT BERMAN
-----------------------------
Robert Berman
Manager
WATERMARK INVESTMENTS LIMITED,
LLC
By: /S/ ROBERT BERMAN
----------------------------
Robert Berman
Manager
/S/ ROBERT BERMAN
----------------------------------
Robert Berman, Individually
<PAGE>
JOINT FILING AGREEMENT
Each of the undersigned hereby agree that the statement on
Schedule 13D with respect to the common stock of Executone Information Systems,
Inc., dated April 9, 1999 is, and any amendments thereto signed by each of the
undersigned, shall be filed on behalf of each of the undersigned pursuant to and
in accordance with the provisions of Rule 13d-1(f) of the Securities Exchange
Act of 1934.
Dated: April 9, 1999
WATERTONE HOLDINGS LP
By:WATERMARK INVESTMENTS
LIMITED, LLC, its General
Partner
By:/S/ ROBERT BERMAN
-------------------------------
Robert Berman
Manager
WATERMARK INVESTMENTS LIMITED,
LLC
By:/S/ ROBERT BERMAN
-------------------------------
Robert Berman
Manager
/S/ ROBERT BERMAN
----------------------------------
Robert Berman, Individually
