<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
- --------------------------------------------------------------------------------
SCHEDULE 13D
(Amendment No. 1)
Under the Securities Exchange Act of 1934
AUDIO COMMUNICATION NETWORK, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
Shares of Common Stock, par value $0.25 per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
0506E106
- --------------------------------------------------------------------------------
(CUSIP Number)
Douglas Wolf
DMA Holdings, Inc.
220 Jackson Street, Suite 2000
San Francisco, CA 94111
(415) 986-5511
(Name, Address and Telephone Number of
Person Authorized to Receive Notices and
Communications)
Copy to:
Christopher D. Dillon, Esq.
Shearman & Sterling
555 California Street, Suite 2000
San Francisco, CA 94104
Telephone: (415) 616-1100
- --------------------------------------------------------------------------------
September 22, 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 [ ].
<PAGE>
SCHEDULE 13D
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CUSIP NO. 0506E106 PAGE 2 OF 9 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DMA Holdings, Inc.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [x]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
BK
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0 *
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
2,697,986 *
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 *
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
2,697,986 *
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
2,697,986
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
59.9%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
HC
- ------------------------------------------------------------------------------
* See Item 5 of the Original Schedule 13D (as defined below).
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP NO. 0506E106 PAGE 3 OF 9 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DMA Holdings Statutory Trust
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [x]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
BK
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Connecticut
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0 *
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
2,697,986 *
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 *
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
2,697,986 *
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
2,697,986
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
59.9%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
OO
- ------------------------------------------------------------------------------
* See Item 5 of the Original Schedule 13D (as defined below),
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 0506E106 PAGE 4 OF 9 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DMA Finance, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [x]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
BK
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0 *
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
2,697,986 *
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 *
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
2,697,986 *
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
2,697,986
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
59.9%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
* See Item 5 of the Original Schedule 13D (as defined below),
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 0506E106 PAGE 5 OF 9 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Intercontinental Pacific Group, Inc.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [x]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
BK
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
California
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0 *
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
2,697,986 *
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 *
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
2,697,986 *
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
2,697,986
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
59.9%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
* See Item 5 of the Original Schedule 13D (as defined below),
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 0506E106 PAGE 6 OF 9 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Douglas Wolf
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [x]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
BK
- ------------------------------------------------------------------------------
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
0 *
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
2,697,986 *
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0 *
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
2,697,986 *
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
2,697,986
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
59.9%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
* See Item 5 of the Original Schedule 13D (as defined below),
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
This Amendment No. 1 amends the statement on Schedule 13D, originally
filed with the Securities and Exchange Commission on June 15, 1998 (the
"Original Schedule 13D"). This Amendment No. 1 is filed with respect to the
shares of common stock, par value $0.25 per share (the "Common Shares"), of
Audio Communications Network, Inc., a Florida corporation (the "Company"). The
principal executive offices of Issuer are located at 1000 Legion Place, Suite
1515, Orlando, Florida 32801.
Unless otherwise indicated, capitalized terms used but not defined
herein shall have the meaning assigned to such terms in the Schedule 13D.
Item 1. Security and Issuer.
-------------------
No changes.
Item 2. Identity and Background.
-----------------------
No changes.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
No changes.
Item 4. Purpose of Transaction.
----------------------
The response set forth in Item 4 of the Schedule 13D is hereby amended
in its entirety to read as follows:
"The Stock Option and Proxy were granted by Suncom in connection with
the execution of the Agreement and Plan of Merger, dated as of June 5, 1998 (the
"Merger Agreement"), among DMA Holdings, Diverse Media Acquisitions, Inc., a
Florida corporation and a wholly owned subsidiary of DMA Holdings ("Purchaser"),
and Issuer. Pursuant to the Merger Agreement and subject to the conditions set
forth therein, Purchaser will be merged with and into the Issuer, with the
Issuer as the surviving corporation (the "Merger"). At the time the Merger
becomes effective (the "Effective Time"), each issued and outstanding share of
Common Stock will be converted into the right to receive $6.40 per share, net in
cash.
Subject to the conditions that (a) any applicable waiting periods (and
any extension thereof) under the Hart-Scott-Rodino Improvement Act of 1976, as
amended, and the rules and regulations promulgated thereunder with respect to
the exercise of the Stock Option shall have expired or been terminated or (b) no
preliminary or permanent injunction or other order, decree or ruling issued by
any court or governmental or regulatory authority, domestic or foreign, of
competent jurisdiction prohibiting the exercise of the Stock Option or the
deliver of the Option Shares shall be in effect, DMA Holdings may exercise the
Stock Option at any time and from time to time following the termination of the
Merger Agreement (other than a
<PAGE>
2
termination pursuant to Section 7.01(c) thereof) until the expiration of such
Stock Option. The Stock Option will expire if (y) it is not exercised prior to
the close of business on the 60th day following the termination of the Merger
Agreement or (z) the Merger Agreement is terminated pursuant to Section 7.01(c)
thereof.
The Proxy granted by Suncom in the Stock Option Agreement is
exercisable during and for the term of the Stock Option granted to DMA Holdings
thereunder (or, following termination of the Merger Agreement, during such
periods as the Stock Option is exercisable).
Upon the consummation of the Merger, each of the Reporting Persons
will review its investment in Issuer and may enter into definitive plans or
proposals with respect to Issuer, which include, but are not limited to (a) a
sale, transfer or leasing of all or substantially all of the assets of Issuer or
any of its subsidiaries, (b) an extraordinary corporate transaction involving
Issuer or any of its subsidiaries, (c) a material change in the Issuer's
capitalization, (d) any other material change in Issuer's business or corporate
structure, or (e) any action similar to any of those enumerated above. The
Reporting Persons are currently exploring possible strategic alternatives
(including those described in clauses (a) through (e)) relating to its ownership
of the Issuer following the Merger.
Further to the preceding paragraph, DMA Holdings and ABRY Partners,
Inc. ("ABRY") have entered into a non-binding preliminary statement of
intentions (the "Letter of Intent"), pursuant to which DMA Holdings and ABRY
have agreed to negotiate the terms of a proposed acquisition (the "Acquisition")
by ABRY of substantially all of the assets of Issuer upon the consummation of
the Merger substantially on the terms set forth in the Letter of Intent. The
Letter of Intent does not constitute an obligation or commitment of the parties
to enter into a definitive asset purchase agreement and any obligations or
commitments to proceed with the Acquisition will be contained only in such a
definitive agreement. There can be no assurance that the parties will enter into
a definitive agreement regarding the Acquisition.
The descriptions herein of the Merger Agreement, the Stock Option
Agreement and the Letter of Intent are qualified in their entirety by reference
to such agreements, copies of which are attached hereto as Exhibits 1, 2 and 3,
respectively."
Item 5. Interest in Securities of the Issuer.
------------------------------------
No changes.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
---------------------------------------------------------------------
to Securities of the Issuer.
---------------------------
No changes.
<PAGE>
3
Item 7. Material to Be Filed as Exhibits.
--------------------------------
Item 7 of the Schedule 13D is hereby amended by adding the following
to the end thereof:
"4. Letter, dated September 22, 1998, from DMA Holdings, Inc. to
ABRY Partners, Inc."
<PAGE>
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.
September 23, 1998 DMA HOLDINGS, INC.
By: /s/ Douglas Wolf
-------------------------------
Name: Douglas Wolf
Title: President
<PAGE>
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.
September 23, 1998 DMA Holdings Statutory Trust
By: First Union National Bank, as Trustee
By: /s/ W. Jeffrey Kramer
--------------------------------
Name: W. Jeffrey Kramer
Title: Vice President
<PAGE>
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.
September 23, 1998 DMA Finance, L.P.
By: Intercontinental Pacific Group, Inc.,
its general partner
By: /s/ Douglas Wolf
--------------------------------
Name: Douglas Wolf
Title: President
<PAGE>
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.
September 23, 1998 Intercontinental Pacific Group, Inc.
By: /s/ Douglas Wolf
-------------------------------
Name: Douglas Wolf
Title: President
<PAGE>
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.
September 23, 1998 /s/ Douglas Wolf
-------------------------------
Name: Douglas Wolf
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION PAGE NO.
- ----------- ----------- --------
+ 1. Agreement and Plan of Merger, dated as of June 5, 1998,
among DMA Holdings, Inc., Diverse Media Acquisition,
Inc., and Audio Communications Network
+ 2. Stockholder's Stock Option Agreement, dated as of June
5, 1998, between DMA Holdings, Inc. and Suncom
Communications, L.L.C.
4 Letter, dated September 22, 1998, from DMA Holdings,
Inc. to ABRY Partners, Inc.
+ Previously filed.
<PAGE>
EXHIBIT 4
DMA HOLDINGS, INC.
220 JACKSON STREET, SUITE 2000
SAN FRANCISCO, CALIFORNIA 94111
September 22, 1998
ABRY Partners, Inc.
18 Newbury Street
Boston, MA 02116
Attention: Royce Yudkoff
Letter of Intent
----------------
Gentlemen:
This letter of intent (this "Letter of Intent") records the mutual
-----------------
understanding and intent of DMA Holdings, Inc. ("Parent") and ABRY Partners,
------
Inc. (together with its affiliates, "Buyer") concerning the proposed acquisition
------
(the "Acquisition") by Buyer of substantially all of the assets of Audio
------------
Communications Network, Inc. and its subsidiaries (the "Sellers"), which Parent
-------
has entered into an agreement to acquire, pursuant to an Agreement and Plan of
Merger among Parent, Diverse Media Acquisitions, Inc. (the "Merger Sub"), and
----------
Sellers, dated June 5, 1998 (the "Merger Agreement"). This Letter of Intent
----------------
supersedes all earlier understandings of the parties regarding the subject
matter hereof.
This Letter of Intent constitutes the preliminary statement of the
intentions of the parties relating to the negotiation of the terms of the
Acquisition and does not contain all matters upon which agreement must be
reached for the Acquisition to be consummated and, except as specified in the
last sentence of this paragraph, creates no legal obligations whatsoever with
respect to the Acquisition on the part of any party hereto. A binding
commitment with respect to the Acquisition will result only from the execution
by Parent and Buyer of a definitive asset purchase agreement (the "Definitive
----------
Agreement"). It is understood that (i) this Letter of Intent does not
- ---------
constitute an obligation or commitment of the parties to enter into the
Definitive Agreement and (ii) any obligations or commitments to proceed with the
Acquisition shall be contained only in the Definitive Agreement.
Notwithstanding the foregoing, the provisions of Sections 2, 3, 4, and 5 hereof
shall be fully binding upon the execution hereof.
1. Term Sheet Provisions. The purchase price, representations and
---------------------
warranties, indemnification and other significant terms of the Acquisition are
summarized in the term sheet attached hereto as Exhibit A (the "Term Sheet").
----------
The provisions of the Term Sheet are incorporated herein by reference.
2. Disclosure. Neither of the parties to this Letter of Intent shall
----------
make, or cause to be made, except for the filing by Parent of an amendment to
the statement on Schedule 13D originally filed with the Securities and Exchange
Commission on June 15, 1998 and except as may be otherwise required by law, any
disclosure or announcement in respect of this Letter of Intent or the
transactions contemplated hereby to any third party, including, without
limitation, governmental agencies, customers, employees, shareholders and the
financial community, without the prior written consent of the other party. The
parties shall cooperate as to the timing and contents of any press release or
public announcement.
3. No Brokers' Fees. Each party shall be responsible for and pay all
----------------
fees due to any broker or finder acting on such party's behalf. Each of the
parties agrees to indemnify the other party against all liabilities
<PAGE>
that may arise due to the activities of a party with respect to any person or
entity acting as a finder or broker on behalf of such party.
4. Termination. This Letter of Intent may be terminated by mutual
-----------
consent of the parties hereto at any time. Buyer may terminate this Letter of
Intent in the event of a material breach of any agreement of Parent or Sellers
contained herein. Parent or Sellers may terminate this Letter of Intent in the
event of a material breach of any agreement of Buyer contained herein. This
Letter of Intent shall terminate and no party shall have any obligation to any
other party with respect to the subject matter of this Letter of Intent, except
as contemplated by the second unnumbered paragraph of this Letter of Intent, if
the Closing has not occurred on or before December 31, 1998.
5. Governing Law. This Letter of Intent shall be governed by, and
-------------
construed in accordance with, the laws of the State of California applicable to
contracts executed and to be performed entirely within that state.
If you agree to work with us toward a Definitive Agreement in
accordance with the terms set forth above, please evidence your acceptance by
executing this Letter of Intent and returning one copy to the undersigned. This
Letter of Intent may be executed in counterparts.
We thank you for your time and efforts to date and look forward to
working with you on this exciting opportunity.
Very truly yours,
DMA HOLDINGS, INC.
By: /s/ Douglas Wolf
----------------------------------
Name: Douglas Wolf
Title: President
Accepted and Agreed as of
the date first written above:
ABRY PARTNERS, INC.
By: /s/ Peggy Koenig
------------------------------
Name: Peggy Koenig
Title: Vice President
<PAGE>
EXHIBIT A
- ---------
PROJECT MUSIC BOX TERM SHEET
- -------------------------------------------------------------------------------
TYPE OF TRANSACTION
- -------------------
The purchase of all the assets which are used or held for use by Audio
Communications Network, Inc. ("ACN") and its subsidiaries (together with ACN,
the "Sellers"), in its business of, among other things, providing foreground and
background subscription music service, and other services and products relating
thereto, from ACN and its parent, DMA Holdings, Inc. ("Parent") by ABRY
Partners, Inc. or one of its subsidiaries (the "Buyer"). In addition, Buyer
will assume certain current liabilities of the Sellers arising in the ordinary
course of the business prior to the time of closing, as well as all of Sellers'
liabilities and obligations pursuant to certain assumed contracts.
CASH PURCHASE PRICE
- -------------------
Buyer shall pay a cash purchase price to be determined by the parties at closing
by wire transfer of immediately available funds to a bank account to be
designated by Parent prior to the closing.
ALLOCATION OF PURCHASE PRICE
- ----------------------------
The Buyer will, and the Parent will cause the Sellers to, allocate the purchase
price among the fixed assets and the intangibles as they may agree in the
definitive agreement, provided that, for financial accounting purposes, Buyer
may allocate the purchase price among the assets according to an independent
appraisal.
CONDITIONS TO CLOSING
- ---------------------
The agreement will require customary closing conditions including, without
limitation: acquiring appropriate consents; no material adverse changes in the
business; delivery of certain opinions and certifications; all representations
and warranties of Parent and Sellers made in the Merger Agreement will still be
true and correct; Parent and Sellers will have complied with all covenants and
agreements under the Merger Agreement.
ORDINARY COURSE OF BUSINESS
- ---------------------------
Parent will, consistent with the Merger Agreement, cause the Sellers to continue
to operate in the ordinary course prior to closing.
REPRESENTATIONS AND WARRANTIES
- ------------------------------
Buyer will look to Sellers for appropriate representations and warranties
regarding the condition and sufficiency of the assets, contracts, litigation,
taxes, rights, environmental and financial statements that include typical
qualifications for knowledge.
INDEMNIFICATION
- ---------------
Parent will indemnify Buyer for Buyer's losses from Parent's breach of certain
representations and warranties, breach of any covenants or agreements, or any
liability or obligation which is not assumed by the Buyer under the terms of
this agreement.
Buyer will indemnify the Parent or Sellers after closing for Parent's or
Sellers' losses from Buyer's breach of any representations and warranties,
breach of any covenants and agreements, or any assumed liabilities under this
agreement.
COSTS AND EXPENSES
- ------------------
<PAGE>
PROJECT MUSIC BOX TERM SHEET
- -------------------------------------------------------------------------------
Except as otherwise specifically set forth herein, each party will bear its own
expenses in connection with this contemplated transaction.
NONSOLICITATION
- ---------------
Parent will not solicit employees of any Sellers for a period of one year from
the closing of this agreement.
SELLERS' NAME
- -------------
Sellers will discontinue the use of the names and logos of Audio Communications
Network, Inc.; and Buyer will acquire all of Sellers' rights with respect
thereto.
WAIVER OF JURY TRIAL
- --------------------
Each party will expressly waive its right to a jury trial in any lawsuit or
proceeding relating to or arising from this agreement.
CLOSING
- -------
Place and time to be determined.
2
