<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
Morrow Snowboards, Inc.
------------------------------------------------------
(Name of Issuer)
Common Stock, No Par Value
------------------------------------------------------
(Title of Class of Securities)
61902C104
------------------------------------------------------
(CUSIP Number)
Stephen C. Kircher, President & CEO
Capitol Bay Management, Inc.
2424 Professional Drive
Roseville, CA 95561
------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
December 1, 1999
------------------------------------------------------
(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(e), 13d-1(f) or 13d-1(g), 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 ("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 1 of 14
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SCHEDULE 13D
CUSIP NO. 61902C104
<TABLE>
<S><C>
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CAPITOL BAY MANAGEMENT, INC.
I.R.S. IDENTIFICATION NUMBER - 68-0308736
- -----------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) [ ] (B) [ ]
- -----------------------------------------------------------------------------------
3. SEC USE ONLY
- -----------------------------------------------------------------------------------
4. SOURCE OF FUNDS
- ------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or(e)
[ ]
- ------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF - 0 -
SHARES ---------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY - 0 -
EACH ---------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON - 0 -
WITH ---------------------------------------------
10. SHARED DISPOSITIVE POWER
- 0 -
- ------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -
- ------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
- ------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
- ------------------------------------------------------------------------------------
</TABLE>
Page 2 of 14
<PAGE>
SCHEDULE 13D
CUSIP NO. 61902C104
<TABLE>
<S><C>
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CAPITOL BAY SECURITIES, INC.
I.R.S. IDENTIFICATION NUMBER - 68-0299608
- -----------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) [ ] (B) [ ]
- -----------------------------------------------------------------------------------
3. SEC USE ONLY
- -----------------------------------------------------------------------------------
4. SOURCE OF FUNDS
AF
- ------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e)
[ ]
- ------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF - 0 -
SHARES ---------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 212,900
EACH ---------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON - 0 -
WITH ---------------------------------------------
10. SHARED DISPOSITIVE POWER
212,900
- ------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
212,900
- ------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.32%
- ------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
BD
- ------------------------------------------------------------------------------------
</TABLE>
Page 3 of 14
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SCHEDULE 13D
CUSIP NO. 61902C104
<TABLE>
<S><C>
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CAPITOL BAY GROUP, INC.
I.R.S. IDENTIFICATION NUMBER - 68-0299607
- -----------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) [ ] (B) [ ]
- -----------------------------------------------------------------------------------
3. SEC USE ONLY
- -----------------------------------------------------------------------------------
4. SOURCE OF FUNDS
- ------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e)
[ ]
- ------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF - 0 -
SHARES ---------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY - 0 -
EACH ---------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON - 0 -
WITH ---------------------------------------------
10. SHARED DISPOSITIVE POWER
- 0 -
- ------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -
- ------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
- ------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
- ------------------------------------------------------------------------------------
</TABLE>
Page 4 of 14
<PAGE>
SCHEDULE 13D
CUSIP NO. 61902C104
<TABLE>
<S><C>
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
STEPHEN C. KIRCHER
- -----------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) [ ] (B) [ ]
- -----------------------------------------------------------------------------------
3. SEC USE ONLY
- -----------------------------------------------------------------------------------
4. SOURCE OF FUNDS
OO
- ------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e)
[ ]
- ------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 2,000,000
SHARES ---------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 1,212,900
EACH ---------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 2,000,000
WITH ---------------------------------------------
10. SHARED DISPOSITIVE POWER
212,900
- ------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,000,000
- ------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X
1,212,900
- ------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
21.8%
- ------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IN
- ------------------------------------------------------------------------------------
</TABLE>
Page 5 of 14
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SCHEDULE 13D
CUSIP NO. 61902C104
<TABLE>
<S><C>
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
STEVEN KAY
- -----------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) [ ] (B) [ ]
- -----------------------------------------------------------------------------------
3. SEC USE ONLY
- -----------------------------------------------------------------------------------
4. SOURCE OF FUNDS
OO
- ------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e)
[ ]
- ------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF - 0 -
SHARES ---------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 500,000
EACH ---------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 500,000
WITH ---------------------------------------------
10. SHARED DISPOSITIVE POWER
- 0 -
- ------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
500,000
- ------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.45%
- ------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IN
- ------------------------------------------------------------------------------------
</TABLE>
Page 6 of 14
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SCHEDULE 13D
CUSIP NO. 61902C104
<TABLE>
<S><C>
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LARRY D. KELLEY
- -----------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) [ ] (B) [ ]
- -----------------------------------------------------------------------------------
3. SEC USE ONLY
- -----------------------------------------------------------------------------------
4. SOURCE OF FUNDS
OO
- ------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e)
[ ]
- ------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF - 0 -
SHARES ---------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 500,000
EACH ---------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 500,000
WITH ---------------------------------------------
10. SHARED DISPOSITIVE POWER
- 0 -
- ------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
500,000
- ------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.45%
- ------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IN
- ------------------------------------------------------------------------------------
</TABLE>
Page 7 of 14
<PAGE>
STATEMENT PURSUANT TO RULE 13d-1
OF THE
GENERAL RULES AND REGULATIONS
UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
The following information pursuant to this Amendment No. 2 amends the
Schedule 13D dated July 19, 1999 ("Schedule 13D"). Unless otherwise indicated,
each capitalized term used but not defined herein shall have the meaning
assigned to such term in the Schedule 13D.
Item 2 IDENTITY AND BACKGROUND.
(a) The persons filing this Schedule 13D (each, a "Reporting Person"
and collectively, "Reporting Persons") are (i) Capitol Bay Management, Inc.
("CBM"); (ii) Capitol Bay Securities, Inc. ("CBS"); and (iii) Capitol Bay Group,
Inc. ("CBG"); (iv) Stephen C. Kircher ("Mr. Kircher"); (v) Steven Kay ("Mr.
Kay"); and (vi) Larry D. Kelley ("Mr. Kelley"). The filing of this Schedule 13D
should not be deemed an admission that CBM, CBS, CBG, Mr. Kircher, Mr. Kay
and/or Mr. Kelley comprise a group within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (the "Act").
(b) The business address of Mr. Kay is 100 The Embarcadero, Penthouse
Suite, San Francisco, CA 94105.
The business address of Mr. Kelley is 5146 Arnold Avenue,
McClellan, CA 95652
(c) Mr. Kay's principal occupation is as an attorney.
Mr. Kelley's principal occupation is as a real estate developer.
(d) - (e) None of the Reporting Persons nor, to the best knowledge of
each Reporting Person, any director or executive officer of CBM, CBS or CBG, has
been, during the last five years, (a) convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (b) 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 judgement, 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.
Item 4 PURPOSE OF TRANSACTION.
The response set forth in Item 4 of the Schedule 13D is amended as
follows:
On December 21, 1999, CBM agreed to purchase all of Mr. Kay and Mr.
Kelley's equity interest in CBG (the "Stock Agreement") and, as partial
consideration for such purchase, CBM agreed to sell, assign and transfer 500,000
Shares of MSI(such shares were transferred with a valuation of $.07 per Share)
to each of Mr. Kay and Mr. Kelley. Mr. Kay and Mr. Kelley each have executed a
one (1) year irrevocable proxy in favor or Mr. Kircher, allowing him to vote the
Shares on any matter submitted to shareholders of MSI, with the exception of any
vote concerning any merger of MSI, any sale of all or substantially all of the
assets of MSI or any reorganization to which MSI is a party. Mr. Kircher
disclaims any beneficial ownership in the shares held by each of Mr. Kay and Mr.
Kelley.
On December 1, 1999 CBM transferred 2,000,000 Shares (such shares were
transferred with a valuation of $.07 per Share)of MSI to Mr. Kircher as
compensation.
As of the date hereof, CBS beneficially owns 212,900 Shares, all of
which were purchased in open market transactions for its own account and are
currently held in inventory.
Page 8 of 14
<PAGE>
CBS is a wholly-owned subsidiary of CBG and CBG is, subsequent to the
foregoing transactions with Mr. Kay and Mr. Kelley, wholly-owned by Mr. Kircher.
Therefor, Mr. Kircher may be deemed to control CBG which may be deemed to
control CBS. Mr. Kircher disclaims any beneficial ownership in the shares held
by CBS.
[SIGNATURES ON THE FOLLOWING PAGE]
Page 9 of 14
<PAGE>
SIGNATURES
The filing of this Amendment No.2 to Schedule 13D and the disclosures
herein shall not be deemed an admission that the Reporting Persons have had an
acquisition of beneficial ownership of Shares or otherwise has become subject to
an obligation to file a Schedule 13D relating to MSI, and shall not be deemed an
admission that the Reporting Persons are the beneficial owner of MSI Shares for
any purpose other than under Sections 13(d) and (g) of the Securities Exchange
Act of 1934 and the rules thereunder.
After reasonable inquiry and to the best of their knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Date: January 7, 2000
CAPITOL BAY MANAGEMENT, INC.
By: By:
-------------------------------- --------------------------------
Stephen C. Kircher Stephen C. Kircher,
President an individual
CAPITOL BAY SECURITIES, INC.
By: By:
-------------------------------- --------------------------------
Stephen C. Kircher Steven Kay,
President an individual
CAPITOL BAY GROUP, INC.
By: By:
-------------------------------- --------------------------------
Stephen C. Kircher Larry D. Kelley,
President an individual
Page 10 of 14
<PAGE>
EXHIBIT A
JOINT FILING AGREEMENT
Page 11 of 14
<PAGE>
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k)(1) promulgated under the Securities
Exchange Act of 1934, as amended, the undersigned agree to the joint filing of a
statement on Schedule 13D (including any and all amendments thereto) with
respect to the Common Stock of Morrow Snowboards, Inc. and further agree that
this Joint Filing Agreement be included as an Exhibit thereto. In addition, each
party to this Agreement expressly authorizes each other to this Agreement to
file on its behalf any and all amendments to such statement.
Date: January 7, 2000
CAPITOL BAY MANAGEMENT, INC.
By: By:
-------------------------------- --------------------------------
Stephen C. Kircher Stephen C. Kircher,
President an individual
CAPITOL BAY SECURITIES, INC.
By: By:
-------------------------------- --------------------------------
Stephen C. Kircher Steven Kay,
President an individual
CAPITOL BAY GROUP, INC.
By: By:
-------------------------------- --------------------------------
Stepehn C. Kircher Larry D. Kelley,
President an individual
Page 12 of 14
<PAGE>
EXHIBIT B
LIST OF EXECUTIVE OFFICERS AND DIRECTORS OF
CAPITOL BAY MANAGEMENT, INC.
CAPITOL BAY SECURITIES, INC. AND
CAPITOL BAY GROUP, INC.
Page 13 of 14
<PAGE>
LIST OF EXECUTIVE OFFICERS AND DIRECTORS OF
CAPITOL BAY MANAGEMENT, INC. AND
CAPITOL BAY SECURITIES, INC.
CAPITOL BAY GROUP, INC.
The executive officers and directors of Capitol Bay Group, Inc.,
Capitol Bay Management, Inc. and Capitol Bay Securities, Inc. are the same and
are constituted as follows:
OFFICERS
Stephen C. Kircher - President and Chief Executive Officer
Elizabeth A. McCargar - Secretary and Chief Financial Officer
DIRECTORS
Stephen C. Kircher
Elizabeth A. McCargar
Page 14 of 14
