<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
SCHEDULE 13D
(RULE 13D-101)
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. __) *
Intelligent Controls, Inc.
- --------------------------------------------------------------------------------
(NAME OF ISSUER)
Common Stock, no par value
- --------------------------------------------------------------------------------
(TITLE OF CLASS OF SECURITIES)
45815R 10 0
- --------------------------------------------------------------------------------
(CUSIP Number)
Richard A. Charpie
Ampersand Ventures
55 William Street, Suite 240
Wellesley, MA 02181-4003
781-239-0700
- --------------------------------------------------------------------------------
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON
AUTHORIZED TO RECEIVE NOTICES AND COMMUNICATIONS)
May 1, 1998
- --------------------------------------------------------------------------------
(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
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 (THE "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> 2
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 2 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Ampersand Specialty Materials and Chemicals III Limited Partnership
[Tax I.D. No. 04-3294909]
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 1,612,247
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
1,612,247
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,612,247
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
32.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 3
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 3 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Ampersand Specialty Materials and Chemicals III Companion Fund Limited
Partnership [Tax I.D. No. 04-3294922]
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 26,215
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
26,215
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
26,215
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.5%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 4
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 4 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
ASMC-III Management Company Limited Partnership
[Tax I.D. No. 04-3294905]
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 1,638,462
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
1,638,462
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,638,462
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
33.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 5
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 5 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
ASMC-III MCLP, LLP [Tax I.D. No. 02-0493924]
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 1,638,462
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
1,638,462
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,638,462
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
33.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 6
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 6 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Charlie D. Yie
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
N/A
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 1,638,462
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
1,638,462
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,638,462
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
33.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 7
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 7 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Richard A. Charpie
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
N/A
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 1,638,462
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
1,638,462
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,638,462
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
33.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 8
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 8 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Peter D. Parker
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 1,638,462
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
1,638,462
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,638,462
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
33.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 9
- ------------------------ -------------------------
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 9 of 20 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Stuart A. Auerbach
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
See attached Schedule I for group members (b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER:
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER:
BENEFICIALLY
OWNED BY 1,638,462
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER:
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER:
1,638,462
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,638,462
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
33.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE> 10
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 10 of 20 Pages
-- --
ITEM 1(a). SECURITY AND ISSUER:
This statement on Schedule 13D (the "Schedule 13D") relates to the
shares of Common Stock, no par value (the "Commons Shares"), of
Intelligent Controls, Inc., a Maine corporation ("INCON"). The
principal executive office of INCON are located at 74 Industrial
Park Road, Saco, Maine 04072.
ITEM 2(a). IDENTITY AND BACKGROUND:
Ampersand Specialty Materials and Chemicals III Limited Partnership
Ampersand Specialty Materials and Chemicals III Companion Fund
Limited Partnership
ASMC-III Management Company Limited Partnership
ASMC-III MCLP LLP
See Schedule I hereto for identification and information on the
general partners of ASMC-III MCLP LLP
(b) ADDRESS OF PRINCIPAL OFFICES OR RESIDENCE:
All filing persons c/o Ampersand Ventures
55 William Street, Suite 240, Wellesley, MA 02181-4003
(c) PRESENT PRINCIPAL OCCUPATION OR EMPLOYMENT AND NAME:
The principal business of Ampersand Specialty Materials and
Chemicals III Limited Partnership (""ASMC-III") and Ampersand
Specialty Materials and Chemicals III Companion Fund
("ASMC-III-CF") is the ownership of securities. The principal
business of ASMC-III Management Company LP is the management of
ASMC-III and ASMC-III-CF. The principal business of ASMC-III MCLP
LLP is the management of ASMC-III Management Company LP. None of
these entities were formed specifically for the purpose of
acquiring the subject securities.
ITEM 2(d). CONVICTION IN A CRIMINAL PROCEEDING:
Not applicable
ITEM 2(e). CONVICTION IN A CIVIL PROCEEDING:
Not applicable
ITEM 2(f). CITIZENSHIP:
Ampersand Specialty Materials and Chemicals III Limited Partnership,
Ampersand Specialty Materials and Chemicals III Companion Fund
Limited Partnership, ASMC-III Management Company Limited Partnership
and ASMC-III MCLP LLP are all established under the laws of the
State of Delaware.
Charlie D. Yie, Richard A. Charpie, Peter D. Parker and Stuart A.
Averbach are citizen of the United States of America.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Working Capital
ITEM 4. PURPOSE OF TRANSACTION.
The reporting persons purchased the Common Shares for investment
purposes and for the purpose of participating in the control of Intelligent
Controls, Inc., through representation on the Company's board of directors.
None of the reporting persons, and none of the persons listed on
Schedule I, has any present plan or proposal which relates to or would result
in: (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j) of item 4.
<PAGE> 11
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 11 of 20 Pages
-- --
ITEM 5. INTEREST IN THE SECURITIES OF THE ISSUER.
(a) Amount beneficially owned:
Ampersand Specialty Materials and Chemicals III Limited Partnership
owns 1,612,247 Common Shares, representing 32.6% of the outstanding
shares.
Ampersand Specialty Materials and Chemicals III Companion Fund
Limited Partnership owns 26,215 Common Shares representing 0.5% of
the outstanding shares.
ASMC-III Management Company Limited Partnership may be attributed
with beneficial ownership of an aggregate of 1,638,462 shares,
consisting of (i) the 1,612,247 shares held by Ampersand Specialty
Materials and Chemicals III Limited Partnership, of which it is the
general partner, and (ii) 26,215 shares held by Ampersand Specialty
Materials and Chemicals III Companion Fund Limited Partnership, of
which it also is the general partner. ASMC-III Management Company
Limited Partnership disclaims beneficial ownership of these shares,
except to the extent of its proportionate pecuniary interest
therein.
ASMC-III MCLP LLP may be attributed with beneficial ownership of the
1,638,462 shares that may be attributed to ASMC-III Management
Company Limited Partnership, of which it is the general partner.
Charles D. Yie, Richard A. Charpie, Peter D. Parker and Stuart A.
Auerbach may be attributed with beneficial ownership of an
aggregate of 1,638,462 shares, consisting of shares that may be
attributed to ASMC-III MCLP LLP, of which they are a general
partners. Each disclaims beneficial ownership of all shares except
to the extent of his proportionate pecuniary interest therein.
(b) Number of Shares and Percent of Class:
Ampersand Specialty Materials and Chemicals III Limited Partnership
- 1,612,247 (32.6%)
Ampersand Specialty Materials and Chemicals III
Companion Fund Limited Partnership - 26,215 (0.5%)
ASMC-III Management Company Limited Partnership - 1,638,462 (33.1%)
ASMC-III MCLP LLP -- 1,638,462 (33.1%)
Charles D. Yie -- 1,638,462 (33.1%)
Richard A. Charpie -- 1,638,462 (33.1%)
Peter D. Parker -- 1,638,462 (33.1%)
Stuart A. Auerbach -- 1,638,462 (33.1%)
(c) All of the shares beneficially owned by the reporting persons
were acquired on May 1, 1998. The purchase price was $3.25 per
share, paid to Intelligent Controls, Inc. in cash at closing.
(d), (e) Not applicable
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
INVESTMENT AGREEMENT As of March 26, 1998, the reporting persons
(collectively, the "Funds") entered into an Investment Agreement
with INCON. Roger E. Brooks, an Executive-in-Residence with
Ampersand Ventures, is a party to a portion of the Investment
Agreement. Under the Agreement, as subsequently amended as of May 1,
1998, the Funds agreed to purchase 1,638,462 Common Shares from
INCON at a price of $3.25 per share (an aggregate purchase price of
$5,325,001). The Investment Agreement also contemplated that INCON
would purchase Common Stock from existing shareholders through an
issuer tender offer at $3.25 per share and that Mr. Brooks would
purchase Common Stock from INCON at $3.25 per share through a
restricted stock arrangement.
The Funds' purchase of stock through this transaction was subject
to certain conditions, including without limitation the condition
that INCON shareholders (a) approve a prososed amendment to the
Articles of Incorporation to increase the authorized common stock
to 8,000,000 shares, and (b) approve a proposed amendment to the
Articles of Incorporation to provide that Section 910 of the Maine
Business Corporation Act will no longer apply to the Company.
Pursuant to the Agreement, INCON has granted the Funds and Mr.
Brooks certain registration rights covering any shares of INCON
stock owned by them.
The Agreement provides the Funds a right of first refusal on
INCON's future sales of capital stock to parties, with certain
exceptions.
INCON also agreed to grant the Funds and Mr. Brooks a right to
require the issuer to repurchase their shares if (i) the Company
receives a bona fide offer from an unaffiliated third party to
acquire INCON in a transaction that valued the Common Stock at more
than $10 per share and (ii) the Funds endorse the offer but INCON
declines to accept the offer.
Under the Agreement, INCON has also agreed to issue additional
shares to the Funds for nominal consideration in the event that a
<PAGE> 12
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 12 of 20 Pages
-- --
pending lawsuit between the Company and a former executive results
in a verdict or settlement exceeding a specified amount.
STOCKHOLDERS AGREEMENT In connection with the purchase of Common
Shares on May 1, 1998 pursuant to the Investment Agreement, the
Funds, INCON, Mr. Brooks, Alan Lukas, Paul E. Lukas, and certain
related parties entered into a Stockholders Agreement restricting
the voting and transfer of Common Shares owned by each. The shares
beneficially owned by these stockholders represent approximately
72.3% of the outstanding Common Shares.
Under the Stockholders Agreement, these shareholders have agreed to
vote their stock (i) to limit the size of INCON's board of
directors to five directors and (ii) to elect as those directors
Charles D. Yie (a general partner of A-LLP), Alan Lukas, the Chief
Executive Officer (presently, Mr. Brooks), and one designee each of
the Funds and Alan Lukas.
These shareholders have also agreed to vote their shares in such a
way that the Funds will be able to block certain significant
transactions, including a merger or other sale of INCON.
The shareholders who are parties to the Stockholders Agreement have
also agreed to grant each other certain rights of first refusal to
purchase shares that a stockholder proposes to sell to a third
party; and to grant each other certain co-sale rights to
participate in selling stock to a third party.
FINDER'S FEE In connection with the purchase of Common Shares, the
reporting persons paid a $183,250.02 finder's fee in cash to an
outside, independent consultant for sourcing the issuer's investment
proposal.
<PAGE> 13
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 13 of 20 Pages
-- --
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Schedule I - Certain Information Regarding the General Partners of
ASMC-III MCLP LLP
Exhibit No. Description
- ----------- -----------
1 Investment Agreement dated as of
March 26, 1998. Incorporated herein
by reference to Exhibit 99.C(1) to
Schedule 13 E-4 of Intelligent Controls,
Inc., filed on March 30, 1998.
1.A Amendment No. 1 to Investment Agreement,
dated as of May 1, 1998.
2 Stockholders Agreement dated as of
May 1, 1998. Incorporated herein by
reference to Exhibit 99.C(2) to
Schedule 13E-s of Intelligent Controls,
Inc., filed on March 30, 1998.
3 Finder's Fee Arrangement
4 Joint Filing Agreement
SIGNATURE
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.
AMPERSAND SPECIALTY MATERIALS AND
CHEMICALS III LIMITED PARTNERSHIP
By: ASMC-III Management Company Limited
Partnership, its general partner
By: ASMC-III MCLP LLP, its general partner
Dated: May 11, 1998 By: /s/ Charles D. Yie
-------------------------------------
Charles D. Yie
General Partner
ASMC-III MANAGEMENT COMPANY LIMITED
PARTNERSHIP
By: ASMC-III MCLP LLP, its general partner
Dated: May 11, 1998 By: /s/ Charles D. Yie
------------------------------------
Charles D. Yie
General Partner
ASMC-III MCLP LLP
Dated: May 11, 1998 By: /s/ Charles D. Yie
-------------------------------------
Charles D. Yie
Dated: May 11, 1998 /s/ Charles D. Yie
----------------------------------------
Charles D. Yie
Dated: May 11, 1998 /s/ Richard A. Charpie
----------------------------------------
Richard A. Charpie
Dated: May 11, 1998 /s/ Peter D. Parker
----------------------------------------
Peter D. Parker
Dated: May 11, 1998 /s/ Stuart A. Auerbach
----------------------------------------
Stuart A. Auerbach
<PAGE> 14
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 14 of 20 Pages
-- --
SCHEDULE I
CERTAIN INFORMATION REGARDING THE GENERAL PARTNERS OF
ASMC-III MCLP LLP
Principal Occupation and
Name (and Position) Business Address
------------------- ------------------------
Richard A. Charpie Managing General Partner
ASMC-III MCLP LLP
President
Ampersand Venture Management Corp.
55 William Street, suite 240
Wellesley, MA 02181-4003
Peter D. Parker General Partner
ASMC-III MCLP LLP
Vice President
Ampersand Venture Management Corp.
55 William Street, suite 240
Wellesley, MA 02181-4003
Stuart A. Auerbach General Partner
ASMC-III MCLP LLP
55 William Street, suite 240
Wellesley, MA 02181-4003
Charles D. Yie General Partner
ASMC-III MCLP LLP
55 William Street, suite 240
Wellesley, MA 02181-4003
<PAGE> 1
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 15 of 20 Pages
-- --
EXHIBIT 1.A
- -----------
AMENDMENT NO. 1 TO INVESTMENT AGREEMENT
This Amendment No. 1 (the "Amendment") to that certain Investment Agreement
(the "Agreement") entered into as of the 26th day of March, 1998, by and among
Intelligent Controls, Inc., a Maine corporation (the "Company"), Ampersand
Specialty Materials and Chemicals III Limited Partnership, a Delaware limited
partnership ("ASMC-III Fund"), Ampersand Specialty Materials and Chemicals III
Companion Fund Limited Partnership, a Delaware limited partnership ("ASMC-III
Companion Fund"), and for purposes of Article IX thereof only, Roger E. Brooks,
an individual ("Brooks"), is entered into as of this __ day of May 1998, by and
among the Company, ASMC-III Fund and ASMC-III Companion Fund. Capitalized terms
used but not defined herein shall have the meanings attributed to them in the
Agreement.
Introduction
------------
A. The Investors proposed in the Agreement to purchase from the Company in
accordance with the terms and conditions thereof an aggregate of 1,538,462
newly issued shares (the "Shares") of the Company's Common Stock, at a price
per share of $3.25.
B. The Investors now propose to purchase an additional 100,000 Shares, at a
price per share of $3.25, on the smae terms and conditions set forth in the
Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged the parties agree to amend the
Agreement as follows:
1. AMENDMENT TO INTRODUCTION. Paragraph A of the Introduction to the
Agreement is revised by deleting the number "1,538,462" and replacing it with
"1,638,462".
2. AMENDMENT TO SCHEDULE 1. Schedule 1 to the Agreement is hereby replaced
by the Schedule 1 attached hereto.
3. SURVIVAL. Except as specifically set forth herein, the Agreement shall
remain in full force and effect and each of the parties confirms all of its
obligations thereunder. This Amendment shall be deemed part of, and be
construed in accordance with, the Agreement.
4. MISCELLANEOUS. This Amendment may be executed in multiple counterparts,
each of which shall be deemed an original but all of which taken together shall
constitute one and the same agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment under
seal as of the date first above written.
INTELLIGENT CONTROLS, INC.
By: /s/ Alan Lukas
----------------------
Alan Lukas
President
<PAGE> 2
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 16 of 20 Pages
---- ----
AMPERSAND SPECIALTY MATERIALS
AND CHEMICALS III LIMITED PARTNERSHIP
By: ASMC-III Management Company
Limited Partnership
By: ASMC-III MCLP LLP, its general partner
By: /s/ Charles D. Yie
General Partner
AMPERSAND SPECIALTY MATERIALS
AND CHEMICALS III COMPANION FUND
LIMITED PARTNERSHIP
By: ASMC-III Management Company
Limited Partnership
By: ASMC-III MCLP LLP, its general partner
By: /s/ Charles D. Yie
General Partner
Schedule 1
----------
NAME OF INVESTOR NUMBER OF SHARES PURCHASE PRICE
Ampersand Specialty Materials and
Chemicals III Limited Partnership 1,612,247 $5,239,802.75
Ampersand Specialty Materials and
Chemicals III Companion Limited
Partnership 26,215 $ 85,198.75
--------- -------------
Total 1,638,462 $5,325,001.50
<PAGE> 1
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 17 of 20 Pages
---- ----
Exhibit 3
- ---------
October 17, 1997
Mr. Rafiq Hasan
Corporate Finance Dimensions
26321 Marsala Way
Mission Viejo, CA 92692
Dear Rafiq:
The purpose of this letter is to follow-up on the discussions you have had
with Paul Zigman and Roger Brooks about formalizing Ampersand's relationship
with CFD. Specifically, I would like to outline our agreement relative to your
compensation for assisting Ampersand in searching for investment opportunities
in the instrumentation and process control industry.
OBJECTIVE: As you know, you will be working with Ampersand primarily in
support of our efforts to find investment opportunities that will leverage
Roger's extensive industry-specific skills and experience. Investment
opportunities of interest to Roger and Ampersand consist of both (1)
privately-owned companies seeking investment capital for growth or where owners
are seeking partial or total liquidity; and (2) spinoffs or divestitures of
units from major corporations - an area in which Ampersand has had considerable
investment success. The attached one-page criteria list, which Roger has
previously shared with you, offers more specific guidelines.
While we understand that the investment process can be long and involved,
our internal goal is to establish, through your efforts, a minimum of five
ongoing dialogues with business owners during the first six months of our
relationship. Based on past experience, this should be sufficient to produce one
investment commitment by the end of one year. For these purposes, we will define
"dialogue" as an investment opportunity where (1) Ampersand has made a visit and
concluded that further work is warranted; and (2) the owner has expressed a
willingness to sell all or part of the company to Ampersand and has entered into
a good faith effort to negotiate appropriate terms.
COMPENSATION. Ampersand is prepared to compensate you in the following
manner:
1. You will receive a retainer of $3000 per month. This retainer will be
paid in advance at three month intervals upon receipt of an invoice from you.
With the exception of travel outside California, this retainer will cover all
expenses associated with this effort, including any advertising you wish to
place. In the extraordinary event that travel is necessary, you will submit a
request for approval in advance.
2. Upon closing of an investment by Ampersand in an opportunity introduced
to us by CFD, you will receive a percentage of the "net consideration" paid by
Ampersand according to the following formula:
5% of the first $2,000,000
4% of the next 1,000,000
3% of the next 1,000,000
1% thereafter
<PAGE> 2
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 18 of 20 Pages
---- ----
Exhibit 3 - Continued
- ---------------------
Mr. Rafiq Hasan
For purposes of this agreement "net consideration" means (a) the amount of
cash paid by Ampersand, plus (b) the fair market value of any securities or
other property conveyed by Ampersand as additional consideration, plus (c) the
discounted present value of any liabilities assumed by Ampersand, less (d) the
amount of any cash or cash-equivalent assets acquired by Ampersand, either
directly or as part of the assets of the target company.
This fee will be paid with respect to (a) any net consideration paid at
closing, (b) any future installment payments, if and when such payments are
made, except that Ampersand may, at its election, pay you based on the
discounted present value of such payments at closing, and (c) any contingent
payments, such as earn-outs and payments out of escrow, only if and when such
payments are made.
3. Both Ampersand and you agree that we will make a best faith effort to
convert the cash fee described above into equity in the target company. Given
that any such conversion is heavily dependent on the specific circumstances of
the investment, the precise terms of your equity participation will be
negotiated on a case-by-case basis. We do agree that any such conversion will be
made at terms that offer a premium to the cash fee equivalent.
4. The term of this Agreement shall be one year. Either party, however, may
cancel this arrangement at the end of six months (i.e. by April 15, 1998).
NEXT STEPS. Assuming you are in agreement with these terms, please sign
this document and return it to Paul's attention. I will then ask Paul and Roger
to continue leading the effort on Ampersand's front, and specifically to draft
with you a work plan detailing more concretely how CFD and Ampersand will work
together over the coming months.
On behalf of my colleagues, let me say in closing that we are looking
forward to partnering with you on this effort and, in the process, to
establishing a long term working relationship between our two firms.
Sincerely yours,
/s/ Donald B. Hawthorne
----------------------------
Donald B. Hawthorne
Chief Financial Officer
Agreed to:
/s/ Rafiq Hasan
-------------------- ----------------------
Signature Date
cc: Ampersand Distribution
<PAGE> 1
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 19 of 20 Pages
---- ----
Exhibit 4
- ---------
JOINT FILING AGREEMENT
In accordance with Rule 13d-1 (f)(1)(iii) under the Securities Exchange Act
of 1934, as amended, the persons named below agree to the Joint Filing on behalf
of each of them of a Schedule 13D with respect to the Common Shares of
Intelligent Controls, Inc., a Maine corporation, and any further amendments
thereto. This Joint Filing Agreement shall be filed as an Exhibit to the
Statement on Schedule 13D.
Dated May __, 1998
AMPERSAND SPECIALTY MATERIALS AND
CHEMICALS ill LIMITED PARTNERSHIP
By: ASMC-III Management Company
Limited Partnership
By: ASMC-III MCLP LLP, its general partner
By: /s/ Charles D. Yie
------------------------------------
Charles D. Yie, General Partner
AMPERSAND SPECIALTY MATERIALS
AND CHEMICALS III COMPANION FUND
LIMITED PARTNERSHIP
By: ASMC-III Management Company
Limited Partnership
By: ASMC-III MCLP LLP, its general partner
By: /s/ Charles D. Yie
------------------------------------
Charles D. Yie, General Partner
ASMC-III MANAGEMENT COMPANY
LIMITED PARTNERSHIP
By: /s/ Charles D. Yie
------------------------------------
Charles D. Yie, General Partner
ASMC-III MCLP LLP
By: /s/ Charles D. Yie
------------------------------------
<PAGE> 2
CUSIP NO. 45815R 10 0 SCHEDULE 13D Page 20 of 20 Pages
---- ----
Charles D. Yie, General Partner
/s/ Richard A. Charpie
----------------------------------------
Richard A. Charpie
/s/ Peter D. Parker
----------------------------------------
Peter D. Parker
/s/ Stuart A. Auerbach
----------------------------------------
Stuart A. Auerbach
/s/ Charles D. Yie
----------------------------------------
Charles D. Yie
