<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ____)*
_________
MICROTOUCH SYSTEMS, INC.
________________________________________________________________________________
(Name of Issuer)
Common Stock, $0.01 par value
________________________________________________________________________________
(Title of Class of Securities)
595145103
_______________________________________________________________
(CUSIP Number)
Lawrence B. Goldstein, Gardere & Wynne, L.L.P.
1601 Elm Street, Suite 3000, Dallas, Texas 75201 (214) 999-4564
________________________________________________________________________________
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
October 4, 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 (S)(S)240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [_].
NOTES: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See(S)(S)240.13d-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 ("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>
SCHEDULE 13D
CUSIP NO. 595145103 PAGE 2 OF 14 PAGES
-------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only).
Edward W. Rose III
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
PF
------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 131,180
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
183,970
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 131,180
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
183,970
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
315,150
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12
(See Instructions)
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
4.9%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
IN
------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 595145103 PAGE 3 OF 14 PAGES
-------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Investment Company, Inc.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
OO
------------------------------------------------------------------------------
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
146,960
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
146,960
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
146,960
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12
(See Instructions)
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
2.3%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
CO
------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 595145103 PAGE 4 OF 14 PAGES
-------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Partners, L.P.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
------------------------------------------------------------------------------
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
121,620
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
121,620
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
121,620
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12
(See Instructions)
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
1.9%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
PN
------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 595145103 PAGE 5 OF 14 PAGES
-----------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Partners 2000, L.P.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
------------------------------------------------------------------------------
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
25,340
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
25,340
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
25,340
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12
(See Instructions)
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.4%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
PN
------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 595145103 PAGE 6 OF 14 PAGES
-----------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Investment Company, Inc. Pooled Investment Trust
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
------------------------------------------------------------------------------
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
29,550
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
29,550
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
29,550
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12
(See Instructions)
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.5%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
OO
------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 595145103 PAGE 7 OF 14 PAGES
-----------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
KMT Partners, L.P.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
------------------------------------------------------------------------------
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 145,150
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 145,150
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
145,150
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12
(See Instructions)
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
2.2%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
PN
------------------------------------------------------------------------------
<PAGE>
Item 1. Security and Issuer.
-------------------
This Statement on Schedule 13D (the "Statement") relates to the shares of
Common Stock, $0.01 par value (the "Microtouch Common Stock"), of Microtouch
Systems, Inc., a Massachusetts corporation (the "Issuer"), which has its
principal executive offices at 300 Griffin Brook Park Drive, Methuen,
Massachusetts 01844.
Item 2. Identity and Background.
-----------------------
(a) - (c): The following sets forth the information required by Items (a), (b)
and (c):
This statement is being filed collectively by Edward W. Rose III, Cardinal
Investment Company, Inc., a Texas corporation ("CICI"), Cardinal Partners, L.P.,
a Texas limited partnership ("CPLP"), Cardinal Partners 2000, L.P., a Texas
limited partnership ("CP2K"), Cardinal Investment Company, Inc. Pooled
Investment Trust (the "Trust") and KMT Partners, L.P., a Texas limited
partnership ("KMT"), pursuant to their agreement to the collective filing of
their statement. Each of Mr. Rose, CICI, CPLP, CP2K, the Trust and KMT are
referred to herein individually as a "Reporting Person" and collectively as the
"Reporting Persons."
CICI is a company engaged in the investment business. The address of its
principal office is 500 Crescent Court, Suite 250, Dallas, Texas 75201 (the
"Cardinal Address"). Mr. Rose is the sole director of CICI and his principal
occupation is acting as the President of CICI. Mr. Rose's business address is
the Cardinal Address. Marshall B. Payne is the Vice President of CICI and his
business address is the Cardinal Address. Debbie Crady is the Chief Financial
Officer and Corporate Secretary of CICI. Ms. Crady's business address is the
Cardinal Address.
CPLP is a Texas limited partnership engaged in the investment business. The
address of its principal office is the Cardinal Address. The General Partner of
CPLP is CICI.
CP2K is a Texas limited partnership engaged in the investment business. The
address of its principal office is the Cardinal Address. The General Partner of
CP2K is CICI.
The Trust is a trust that, pursuant to its Declaration of Trust, invests funds
from the CICI Purchase Pension Plan and the CICI Profit Sharing Plan. The
address of its principal office is the Cardinal Address. The trustee of the
Trust is Edward W. Rose III.
KMT is a partnership engaged in the investment business. The address of its
principal office is the Cardinal Address. The General Partner of KMT is
Kennerly Partners, L.P., a Texas limited partnership ("KPLP"). The General
Partner of KPLP is Kennerly Management, L.P., a Texas limited partnership
("KMLP"). The General Partner of KMLP is Kennerly Capital, L.L.C., a Texas
limited liability company ("KCLLC"). The principal business address for each of
KPLP, KMLP, KCLLC is the Cardinal Address. The Managers of KCLLC are Peter G.
Collins and Shannon J. Collins. Each of the Collins' principal occupation is
the investment business and their business addresses are the Cardinal Address.
(d) and (e):The following sets forth the information required by Items (d) and
(e):
During the last five years, none of the Reporting Persons, Mr. Payne, Ms.
Crady, or either of the Collins (i) has been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (ii) was 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
Page 8 of 14 Pages
<PAGE>
prohibiting or mandating activities subject to, Federal or State securities
laws, or finding any violation with respect to such laws.
(f) Mr. Rose, Mr. Payne, Ms. Crady, and both of the Collins are all citizens
of the United States.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
The following table sets forth the aggregate consideration paid for the
Microtouch Common Stock by each of the persons or entities listed below. The
table lists the actual owners of the shares.
<TABLE>
<CAPTION>
Name Number of Shares Aggregate Consideration
---- ---------------- -----------------------
<S> <C> <C>
Cardinal Partners 2000, L.P. 25,340 $ 165,841.54
Cardinal Partners, L.P. 121,620 $2,046,019.14
Cardinal Investment Company, Inc. 29,550 $ 499,493.34
Pooled Investment Trust
KMT Partners, L.P. 145,150 $2,461,359.65
Edward W. Rose III 131,180 $ 922,916.81
Lela Rose 3,730 $ 27,958.41
Will E. Rose 3,730 $ 27,958.41
------- -------------
460,300 $6,151,547.30
</TABLE>
The funds used to acquire the Microtouch Common Stock came from available
working capital and/or available cash on hand of each of the persons or entities
listed above. KMT's general partner, KPLP, formed KMT to purchase the Microtouch
Common Stock and approached limited partners of KPLP to join KMT as limited
partners. KMT obtained the funds used to acquire its shares of Microtouch Common
Stock from its limited partners and general partner. The limited partners of KMT
are Edward W. Rose III, Marshall B. Payne, McCloskey 1996 GRAT 10, Palmetto
Partners, Ltd., Peter G. Collins and Shannon J. Collins.
Item 4. Purpose of Transaction.
----------------------
Each Reporting Person has acquired their respective shares of Microtouch
Common Stock to hold primarily for investment. Depending upon market conditions
and other factors, each Reporting Person may, from time to time, either jointly
or individually, acquire additional shares of Microtouch Common Stock or dispose
of all or any part of their respective holdings of Microtouch Common Stock.
The Reporting Persons do not have any specific plans or proposals which relate
to or would result in any extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of its subsidiaries;
a sale or transfer of a material amount of assets of the Company or any of its
subsidiaries; any change in the present board of directors or management of the
Company; any material change in the present capitalization or dividend policy of
the Company; any other material change in the Company's business or corporate
structure; changes in the Company's charter, bylaws or instruments corresponding
thereto or other actions which may impede the acquisition of control of the
Company by any person; causing a class of securities of the Company to be
delisted from a national securities exchange or to cease to be authorized to be
quoted in an inter-dealer quotation system of a registered national securities
association; a class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Securities
Exchange Act of 1934, as amended; or any action similar to any of those
enumerated above; but such persons reserve the right to propose or undertake or
participate in any of the foregoing actions in the future.
Page 9 of 14 Pages
<PAGE>
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) and (b): The following table sets forth the information required by Item
5(a) and (b):
<TABLE>
<CAPTION>
NAME Number of Shares Voting Power Dispositive Power % Ownership
---- ---------------- ------------ ----------------- -----------
<S> <C> <C> <C> <C>
Edward W. Rose III 131,180 sole sole 2.0%
183,970/(1)/(2)/(3)/ shared shared 2.8%
CICI 146,960/(4)/ shared shared 2.3%
CPLP 121,620 shared shared 1.9%
CP2K 25,340 shared shared 0.4%
Trust 29,550 shared shared 0.5%
KMT 145,150 sole sole 2.2%
</TABLE>
_____________________________
(1) Includes 3,730 shares owned by each of Lela Rose and Will E. Rose, the
daughter and son of Edward W. Rose III, respectively, and over which Mr. Rose
has shared dispositive and voting power by virtue of an oral agreement with each
of his children.
(2) Includes the shares owned by the Trust.
(3) Includes shares over which CICI has voting and/or dispositive power (and
over which Mr. Rose may be considered to have voting and/or dispositive power by
virtue of being the sole director and the President of CICI).
(4) Includes 121,620 shares owned by CPLP, of which CICI is the general
partner, and 25,340 shares owned by CP2K, of which CICI is the general partner.
The total number of shares beneficially owned by the Reporting Persons is
460,300. Each of Mr. Rose, CPLP, CP2K, the Trust and KMT disclaims beneficial
ownership of all of the shares of the Microtouch Common Stock covered by this
Statement, other than the shares individually owned by him or it.
With respect to the shares owned by Lela Rose and Will E. Rose, Edward W. Rose
III shares voting and dispositive power with the respective owners of such
shares. The following is the applicable information required by Item 2 with
respect to Lela Rose and Will E. Rose:
1. Lela Rose's principal occupation is a self-employed fashion designer
and her business address is the Cardinal Address.
2. Will E. Rose's principal occupation is the investment business and his
business address is the Cardinal Address. Mr. Rose is employed by HBK
Investments, which is engaged in the investment business and has a
business address of 300 Crescent Court, Suite 700, Dallas, Texas
75201.
To the Reporting Persons' knowledge, none of the above listed persons (i) has
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) was 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.
Lela Rose and Will E. Rose are citizens of the United States.
Page 10 of 14 Pages
<PAGE>
(c) The following table sets forth the information required by Item 5(c):
<TABLE>
<CAPTION>
Date of Amount of
Name Transaction Securities Price Per Share
---- ----------- ---------- ---------------
<S> <C> <C> <C>
Cardinal Partners 2000, L.P.
09-27-00 390 6.90
10-02-00 80 6.17
10-03-00 170 6.14
10-04-00 3,350 6.27
10-05-00 1,700 6.24
10-05-00 2,730 6.13
10-10-00 8,810 6.71
10-10-00 180 6.42
10-11-00 7,930 6.69
Cardinal Investment Company, Inc.
Pooled Investment Trust
10-10-00 10 6.71
10-11-00 10 6.69
Edward W. Rose III
09-27-00 1,810 6.90
10-02-00 400 6.17
10-03-00 790 6.14
10-04-00 15,790 6.27
10-05-00 7,560 6.24
10-05-00 12,090 6.13
10-09-00 200 6.42
10-10-00 38,960 6.71
10-10-00 780 6.42
10-11-00 35,060 6.69
Lela Rose
09-27-00 50 6.90
10-02-00 10 6.17
10-03-00 20 6.14
10-04-00 430 6.27
10-05-00 220 6.24
10-05-00 340 6.13
10-10-00 1,110 6.71
10-10-00 20 6.42
10-11-00 1,000 6.69
Will E. Rose
09-27-00 50 6.90
10-02-00 10 6.17
10-03-00 20 6.14
10-04-00 430 6.27
10-05-00 220 6.24
10-05-00 340 6.13
10-10-00 1,110 6.71
10-10-00 20 6.42
</TABLE>
Page 11 of 14 Pages
<PAGE>
<TABLE>
<CAPTION>
Date of Amount of
Name Transaction Securities Price Per Share
---- ----------- ---------- ---------------
<S> <C> <C> <C>
10-11-00 1,000 6.69
</TABLE>
Each of the above described transactions were open market purchases, and all per
share amounts are net of commissions.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
---------------------------------------------------------------------
to Securities of the Issuer.
---------------------------
Pursuant to the Partnership Agreements of CPLP and CP2K, CICI as
general partner of CPLP and CP2K has the right to acquire, transfer and vote any
securities owned by such partnerships, including the Microtouch Common Stock.
Pursuant to the Partnership Agreements of CPLP and CP2K, 20% of the amount by
which net profits exceed net losses for each accounting period during each of
CPLP and CP2K's fiscal years is allocated to CICI. Additionally, each of CPLP
and CP2K's Partnership Agreements provides for a yearly management fee of 1% of
the value of each Partnership's total assets to be paid to CICI on a quarterly
basis. Pursuant to the Declaration of Trust of the Trust, Mr. Rose as trustee of
the Trust has the right to acquire, transfer and vote any securities owned by
the Trust including the Microtouch Common Stock. The Trust does not pay any fee
to CICI or Mr. Rose. Mr. Rose has oral agreements with Lela Rose and Will E.
Rose, pursuant to which Mr. Rose has the authority to buy or sell securities on
behalf of each of them without consulting them. Mr. Rose purchased the
Microtouch Common Stock on behalf of each of them pursuant to such authority.
Lela Rose and Will E. Rose have agreed to pay CICI 20% of the profits they
receive from the sale of the Microtouch Common Stock. Pursuant to the KMT
Partnership Agreement, KPLP as general partner of KMT has the right to acquire,
transfer and vote any securities owned by KMT, including the Microtouch Common
Stock. Pursuant to the KMT Partnership Agreement, 15% of the amount by which
cumulative profits exceed cumulative losses during KMT's term of existence is
allocated to KPLP.
Item 7. Material to be Filed as Exhibits.
--------------------------------
Exhibit A - Agreement Regarding Filing of Schedule 13D
Exhibit B - Cardinal Partners 2000, L.P. Limited Partnership
Agreement
Exhibit C - Cardinal Partners, L.P. Limited Partnership Agreement
Exhibit D - Cardinal Investment Company, Inc. Pooled Investment Trust
[As Amended and Restated as of January 1, 1989]
Exhibit E - KMT Partners, L.P. Limited Partnership Agreement
Page 12 of 14 Pages
<PAGE>
Signatures
Each of the undersigned hereby appoints Edward W. Rose III, Marshall B.
Payne and Debbie Crady and each of them (with full power to act alone), as
attorneys and agents for the undersigned, with full power of substitution, for
and in the name, place and stead of the undersigned, to sign and file with the
Securities and Exchange Commission under the Securities Exchange Act of 1934 any
and all amendments and exhibits to this Schedule 13D and any and all
applications, instruments and other documents to be filed with the Securities
and Exchange Commission pertaining hereto or thereto, with full power and
authority to do and perform any and all acts and things whatsoever requisite or
desirable.
After reasonable inquiry and to the best of the undersigned's knowledge
and belief, each of the undersigned certifies that the information set forth in
this statement is true, complete and correct.
Dated: October 11, 2000
/s/ EDWARD W. ROSE III
----------------------------------------
Edward W. Rose III
CARDINAL INVESTMENT COMPANY, INC.
By: /s/ DEBBIE CRADY
------------------------------------
Name: Debbie Crady
----------------------------------
Title: Chief Financial Officer
---------------------------------
CARDINAL PARTNERS, L.P.
By: Cardinal Investment Company, Inc.,
its General Partner
By: /s/ EDWARD W. ROSE III
-------------------------------
Edward W. Rose III, President
CARDINAL PARTNERS 2000, L.P.
By: Cardinal Investment Company, Inc.,
its General Partner
By: /s/ EDWARD W. ROSE III
-------------------------------
Edward W. Rose III, President
Page 13 of 14 Pages
<PAGE>
CARDINAL INVESTMENT COMPANY, INC.
POOLED INVESTMENT TRUST [As Amended and
Restated as of January 1, 1989]
By: /s/ EDWARD W. ROSE III
------------------------------------
Edward W. Rose III, Trustee
KMT PARTNERS, L.P.
By: Kennerly Partners, L.P., its General
Partner
By: Kennerly Management, L.P., its
General Partner
By: Kennerly Capital, L.L.C., its
General Partner
By: /s/ SHANNON J. COLLINS
--------------------------
Shannon J. Collins,
Manager
Page 14 of 14 Pages
