-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AW9+MkBzPl5qMBH4zNnnADqwdeJLkhIMt+kAxBotIHIC7BSirzV3eB2vEp1rjoce 7DKgEB9BEMdz80Ybdc0zgw== 0001012870-98-000026.txt : 19980112 0001012870-98-000026.hdr.sgml : 19980112 ACCESSION NUMBER: 0001012870-98-000026 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980109 SROS: NASD GROUP MEMBERS: ANN H. LAMONT GROUP MEMBERS: BANDEL L. CARANO GROUP MEMBERS: EDWARD F. GLASSMEYER GROUP MEMBERS: EILEEN M. MORE GROUP MEMBERS: FREDRIC W. HARMAN GROUP MEMBERS: GERALD R. GALLAGHER GROUP MEMBERS: OAK ASSOCIATES III, A LIMITED PARTNERSHIP GROUP MEMBERS: OAK ASSOCIATES V, LLC GROUP MEMBERS: OAK ASSOCIATES VII, LLC GROUP MEMBERS: OAK INVESTMENT PARTNERS III, A LIMITED PARTNERSHIP GROUP MEMBERS: OAK INVESTMENT PARTNERS V, LIMITED PARTNERSHIP GROUP MEMBERS: OAK INVESTMENT PARTNERS VII, LIMITED PARTNERSHIP GROUP MEMBERS: OAK MANAGEMENT CORP GROUP MEMBERS: OAK MANAGEMENT CORPORATION GROUP MEMBERS: OAK V AFFILIATES GROUP MEMBERS: OAK V AFFILIATES FUND, LIMITED PARTNERSHIP GROUP MEMBERS: OAK VII AFFILIATES FUND, LIMITED PARTNERSHIP GROUP MEMBERS: OAK VII AFFILIATES, LLC GROUP MEMBERS: SETH L. HARRISON SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: DIGITAL SOUND CORP CENTRAL INDEX KEY: 0000718576 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 953222624 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: SEC FILE NUMBER: 005-49601 FILM NUMBER: 98504153 BUSINESS ADDRESS: STREET 1: 6307 CARPINTERIA AVE CITY: CARPINTERIA STATE: CA ZIP: 93013 BUSINESS PHONE: 8055662255X2154 MAIL ADDRESS: STREET 1: 6307 CARPINTERIA AVE CITY: CARPINTERIA STATE: CA ZIP: 93013 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: OAK MANAGEMENT CORP CENTRAL INDEX KEY: 0001030818 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: ONE GORHAM ISLAND CITY: WESTPORT STATE: CT ZIP: 06880 BUSINESS PHONE: 2032268346 MAIL ADDRESS: STREET 1: ONE GORHAM ISLAND CITY: WESTPORT STATE: CT ZIP: 06880 SC 13D 1 SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. _______)* DIGITAL SOUND CORPORATION ------------------------- (Name of Issuer) COMMON STOCK, NO PAR VALUE -------------------------- (Title of Class of Securities) 253911101 --------- (CUSIP Number) Cooley Godward LLP Five Palo Alto Square 3000 El Camino Real Palo Alto, CA 94306-2155 ------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) December 19, 1997 ----------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ]. Check the following box if a fee is being paid with the statement [ ]. (A fee is not required only if the reporting person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in Item 1; and (2) has filed no amendment subsequent thereto reporting beneficial ownership of five percent or less of such class.) (See Rule 13d-7.) NOTE: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent. * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the 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, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section of the Exchange Act but shall be subject to all other provisions of the Exchange Act. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 2 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak Investment Partners VII, Limited Partnership - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 6,503,340 SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 Not applicable OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 6,503,340 REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 Not applicable - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 6,503,340 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 24.19% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 PN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 3 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak Associates VII, LLC - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 6,503,340 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 6,503,340 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 6,503,340 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 24.19% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 OO - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 4 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak VII Affiliates Fund, Limited Partnership - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 163,330 SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 Not applicable OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 163,330 REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 Not applicable - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 163,330 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 0.79% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 PN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 5 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak VII Affiliates, LLC - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 163,330 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 163,330 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 163,330 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 0.79% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 OO - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 6 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak Investment Partners V, Limited Partnership - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 6,720,615 SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 Not applicable OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 6,720,615 REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 Not applicable - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 6,720,615 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 24.94% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 PN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 7 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak Associates V, LLC - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 6,720,615 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 6,720,615 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 6,720,615 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 24.94% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 OO - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 8 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak V Affiliates Fund, Limited Partnership - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 148,090 SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 Not applicable OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 148,090 REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 Not applicable - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 148,090 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 0.72% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 PN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 9 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak V Affiliates - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 148,090 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 148,090 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 148,090 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 0.72% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 PN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 10 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak Investment Partners III, A Limited Partnership - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 1,948,322 SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 Not applicable OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 1,948,322 REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 Not applicable - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 1,948,322 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 9.54% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 PN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 11 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak Associates III, A Limited Partnership - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 1,948,322 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 1,948,322 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 1,948,322 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 9.54% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 PN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 12 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Oak Management Corporation - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 CO - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 13 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Bandel L. Carano - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 IN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 14 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Gerald R. Gallagher - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 IN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 15 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Edward F. Glassmeyer - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 IN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 16 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Fredric W. Harman - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 IN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 17 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Ann H. Lamont - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 IN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 18 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Eileen M. More - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 IN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. SCHEDULE 13D - ----------------------- --------------------- CUSIP NO. 253911101 PAGE 19 OF 31 PAGES - ----------------------- --------------------- - ------------------------------------------------------------------------------ NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Seth L. Harrison - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* 2 (a) [_] (b) [X] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS* 4 WC - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 5 ITEMS 2(d) OR 2(e) [_] - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER NUMBER OF 7 Not applicable SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 15,483,697 OWNED BY ----------------------------------------------------------- SOLE DISPOSITIVE POWER EACH 9 Not applicable REPORTING ----------------------------------------------------------- SHARED DISPOSITIVE POWER PERSON WITH 10 15,483,697 - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,483,697 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 45.41% - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON* 14 IN - ------------------------------------------------------------------------------ *SEE INSTRUCTION BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. ITEM 1: SECURITY AND ISSUER 1) CLASS OF SECURITIES: Common Stock, no par value ("Common Stock") 2) ISSUER: Digital Sound Corporation, a California corporation ("Issuer") 3) PRINCIPAL ADDRESS: 6307 Carpinteria Avenue, Carpinteria, California 93013 ITEM 2: IDENTITY AND BACKGROUND 1) REPORTING PERSON: a) Oak Investment Partners VII, Limited Partnership ("Oak VII") b) Oak Associates VII, LLC c) Oak VII Affiliates Fund, Limited Partnership ("Oak VII Affiliates") d) Oak VII Affiliates, LLC e) Oak Investment Partners V, Limited Partnership ("Oak V") f) Oak Associates V, LLC g) Oak V Affiliates Fund, Limited Partnership ("Oak V Affiliates") h) Oak V Affiliates i) Oak Investment Partners III, A Limited Partnership ("Oak III") j) Oak Associates III, A Limited Partnership k) Oak Management Corporation l) Bandel L. Carano m) Gerald R. Gallagher n) Edward F. Glassmeyer o) Fredric W. Harman p) Ann H. Lamont q) Eileen M. More r) Seth L. Harrison See Item 2 hereof. 2) PLACE OF ORGANIZATION AND PRINCIPAL BUSINESS: Each of the limited partnerships and limited liability companies listed in Items 1(a) through (j) above is a venture capital fund or general partner of a venture capital fund formed under the laws of the State of Delaware. Page 20 of 31 Oak Management Corporation, a Delaware corporation, is an investment advisor to Oak VII, Oak V and Oak III. The executive officers and directors of Oak Management Corporation are listed on Schedule I hereto. Each of the individuals listed in Items 1(l) through (r) is a United States citizen and a managing member of Oak Associates VII, LLC, Oak VII Affiliates, LLC, Oak Associates V, LLC and a general partner of Oak V Affiliates and Oak Associates III, A Limited Partnership, except that Seth L. Harrison is only a managing member of Oak Associates VII, LLC. 3) PRINCIPAL BUSINESS ADDRESS: Each of the entities and individuals listed in Items 1(a) through (r) above has the following principal business address: c/o Oak Management Corporation One Gorham Island Westport, CT 06880 4) CRIMINAL CONVICTIONS: None of the Reporting Persons has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors). 5) CIVIL ADJUDICATION OF VIOLATION OF SECURITIES LAWS: None of the Reporting Persons was, during the last five years, 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. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION 1) OAK VII: Oak VII purchased 435,317 shares of Series B Preferred Stock, no par value, of the Issuer ("Series B Preferred") and a convertible promissory note ("Convertible Promissory Note") in the principal amount of $1,612,627.50 for an aggregate purchase price of $4,877,505 pursuant to that certain Preferred Stock Purchase Agreement, dated December 19, 1997, by and among Oak VII, the Issuer and certain other investors (the "Purchase Agreement"). Each share of Series B Preferred is convertible into 10 shares of Common Stock, and each $7.50 of the principal amount of the Convertible Promissory Note will be convertible into one share of Series B Preferred. The shares of Series B Preferred and Convertible Promissory Note purchased by Oak VII are or will be convertible into an aggregate of 6,503,340 shares of Common Stock. Such Convertible Promissory Note will be automatically converted into shares of Series B Preferred upon approval by the Issuer's shareholders of an amendment to the Issuer's Articles of Incorporation increasing the Issuer's authorized shares of Common Stock, but will not be convertible prior to such time. The source of Oak VII's consideration under the Purchase Agreement was Oak VII's working capital. Oak VII did not purchase any of the shares of Series B Preferred or the Convertible Promissory Note with borrowed funds. 2) OAK VII AFFILIATES: Oak VII Affiliates purchased 10,933 shares of Series B Preferred and a Convertible Promissory Note in the principal amount of $40,500 for an aggregate purchase price of $122,497.50 pursuant to the Purchase Agreement. The shares of Series B Preferred and Convertible Promissory Note purchased by Oak VII Affiliates are or will be convertible into an aggregate of 163,330 shares of Common Stock. Such Convertible Promissory Note Page 21 of 31 will be automatically converted into shares of Series B Preferred upon approval by the Issuer's shareholders of an amendment to the Issuer's Articles of Incorporation increasing the Issuer's authorized shares of Common Stock, but will not be convertible prior to such time. The source of Oak VII Affiliates' consideration under the Purchase Agreement was Oak VII Affiliates' working capital. Oak VII Affiliates did not purchase any of the shares of Series B Preferred or the Convertible Promissory Note with borrowed funds. 3) OAK V: Oak V purchased 652,000 shares of Series B Preferred in exchange for 2,573,684 shares of Series A Preferred Stock, no par value, of the Issuer ("Series A Preferred") pursuant to the Purchase Agreement. The shares of Series B Preferred purchased by Oak V are convertible into an aggregate of 6,520,000 shares of Common Stock. In addition to such shares, the amount shown as beneficially owned by Oak V on page 6 hereof includes 161,950 shares of Common Stock and options to purchase an aggregate of 38,665 shares of Common Stock held by Mr. Bandel L. Carano on behalf of Oak V. 4) OAK V AFFILIATES: Oak V Affiliates purchased 14,667 shares of Series B Preferred Stock, no par value, of the Issuer ("Series B Preferred") in exchange for 57,895 shares of Series A Preferred pursuant to the Purchase Agreement. The shares of Series B Preferred purchased by Oak V Affiliates are convertible into an aggregate of 146,670 shares of Common Stock. In addition to such shares, the amount shown as beneficially owned by Oak V Affiliates on page 8 hereof includes 550 shares of Common Stock and options to purchase an aggregate of 870 shares of Common Stock held by Mr. Bandel L. Carano on behalf of Oak V Affiliates. 5) OAK III: The amount shown as beneficially owned by Oak III on page 10 hereof includes 1,912,857 shares of Common Stock and options to purchase an aggregate of 35,465 shares of Common Stock held by Mr. Bandel L. Carano on behalf of Oak III. ITEM 4. PURPOSE OF THE TRANSACTION The purpose of the purchase of 435,317 shares of Series B Preferred and a Convertible Promissory Note in the principal amount of $1,612,627.50 by Oak VII, 10,933 shares of Series B Preferred and a Convertible Promissory Note in the principal amount of $40,500 by Oak VII Affiliates, 652,000 shares of Series B Preferred by Oak V, and 14,667 shares of Series B Preferred by Oak V Affiliates was investment. Mr. Bandel L. Carano is a member of the Issuer's Board of Directors. Each of Oak VII, Oak VII Affiliates, Oak V and Oak V Affiliates may make additional purchases of the Issuer's securities, may sell some or all of the Issuer's securities each of them currently owns, or may distribute some or all of such securities to their respective partners or members, as applicable, in each case subject to compliance with applicable federal and state securities laws. The shares of Series B Preferred may be converted by the holders thereof into shares of Common Stock in accordance with the Issuer's Certificate of Determination of Rights, Preferences and Privileges of Series B Preferred Stock. The Convertible Promissory Notes held by each of Oak VII and Oak VII Affiliates will be automatically converted into shares of Series B Preferred upon approval by the Issuer's shareholders of an amendment to the Issuer's Articles of Incorporation increasing the Issuer's authorized shares of Common Stock, but will not be convertible prior to such time. Page 22 of 31 Except as set forth herein, none of the Reporting Persons set forth in Item 2 hereof has any plan or proposal relating to, or which would result in, any event described in (a) through (j) of the instructions to this Item 4. ITEM 5. INTERESTS IN SECURITIES OF THE ISSUER The approximate percentages of Common Stock reported as beneficially owned by each of the Reporting Persons is based upon 20,386,004 shares outstanding as of October 31, 1997, as reported in the Issuer's Quarterly Report on Form 10-Q for the quarter ended September 30, 1997, in addition to shares of Common Stock issuable upon conversion or exercise of Series B Preferred, Convertible Promissory Notes and options held by certain of the Reporting Persons as described in Item 3 hereof. See Items 7, 8, 9, 10, 11 and 13 of each Reporting Person's cover sheet for a description of the number of shares of Common Stock over which such Reporting Person has sole voting power, shared voting power, sole dispositive power and shared dispositive power, as well as the aggregate number of shares beneficially owned by each Reporting Person and the percent of Common Stock represented by such amount. Except as set forth in the Purchase Agreement, none of the Reporting Persons has been a party to any transaction in the Common Stock, Series B Preferred or Convertible Promissory Notes in the last 60 days. None of the Reporting Persons knows of any other person that has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the Common Stock, Series B Preferred or Convertible Promissory Notes. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO THE SECURITIES OF THE ISSUER In addition to the Purchase Agreement, the Issuer, Oak VII, Oak VII Affiliates, Oak V, Oak V Affiliates and the other purchasers of Series B Preferred and Convertible Promissory Notes entered into that certain Registration Rights Agreement, dated December 19, 1997, which provides for the registration of the shares of Common Stock issuable upon conversion of the Series B Preferred (the "Registration Rights Agreement"). Other than the Purchase Agreement and the Registration Rights Agreement, none of the Reporting Persons is aware of any contracts, arrangements, understandings or relationships (legal or otherwise) with any person with respect to the Common Stock, the Series B Preferred or the Convertible Promissory Notes, including transfer or voting of any of such securities, finder's fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or loss, of the giving of withholding of proxies. ITEM 7. MATERIALS TO BE FILED AS EXHIBITS EXHIBIT A: Joint Filing Agreement Among the Reporting Persons Page 23 of 31 SIGNATURES After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated January 5, 1998 Oak Investment Partners III, A Limited Partnership By: Oak Associates III, A Limited Partnership, As General Partner By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak Associates III, A Limited Partnership By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak Investment Partners V, Limited Partnership By: Oak Associates V, LLC As General Partner By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak Associates V, LLC By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak V Affiliates Fund, Limited Partnership By: Oak V Affiliates, As General Partner By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak V Affiliates By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak Investment Partners VII, Limited Partnership By: Oak Associates VII, LLC As General Partner By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak Associates VII, LLC By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak VII Affiliates Fund, Limited Partnership By: Oak VII Affiliates, LLC As General Partner By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak VII Affiliates, LLC By: /s/ Edward F. Glassmeyer -------------------------- Managing Member OAK MANAGEMENT CORPORATION By: /s/ Edward F. Glassmeyer ------------------------------ Name: Edward F. Glassmeyer Title: President /s/ Bandel L. Carano ---------------------- Bandel L. Carano /s/ Fredric W. Harman ----------------------- Fredric W. Harman /s/ Gerald R. Gallagher ------------------------- Gerald R. Gallagher /s/ Edward F. Glassmeyer ------------------------- Edward F. Glassmeyer /s/ Ann H. Lamont ------------------- Ann H. Lamont /s/ Eileen M. More -------------------- Eileen M. More /s/ Seth L. Harrison ---------------------- Seth L. Harrison INDEX TO EXHIBITS Page ---- Exhibit A Joint Filing Agreement Among the Reporting Persons 28 EXHIBIT A JOINT FILING AGREEMENT AMONG THE REPORTING PERSONS Each of the undersigned hereby agrees that the statement on Schedule 13D filed on the date hereof with respect to the shares of Common Stock of Digital Sound Corporation has been filed on behalf of the undersigned. Signature: Dated January 6, 1998 Oak Investment Partners III, A Limited Partnership By: Oak Associates III, A Limited Partnership, As General Partner By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak Associates III, A Limited Partnership By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak Investment Partners V, Limited Partnership By: Oak Associates V, LLC As General Partner By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak Associates V, LLC By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak V Affiliates Fund, Limited Partnership By: Oak V Affiliates, As General Partner By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak V Affiliates By: /s/ Edward F. Glassmeyer -------------------------- General Partner Oak Investment Partners VII, Limited Partnership By: Oak Associates VII, LLC As General Partner By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak Associates VII, LLC By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak VII Affiliates Fund, Limited Partnership By: Oak VII Affiliates, LLC As General Partner By: /s/ Edward F. Glassmeyer -------------------------- Managing Member Oak VII Affiliates, LLC By: /s/ Edward F. Glassmeyer -------------------------- Managing Member OAK MANAGEMENT CORPORATION By: /s/ Edward F. Glassmeyer -------------------------- Name: Edward F. Glassmeyer Title: President /s/ Bandel L. Carano ---------------------- Bandel L. Carano /s/ Fredric W. Harman ----------------------- Fredric W. Harman /s/ Gerald R. Gallagher ------------------------- Gerald R. Gallagher /s/Edward F. Glassmeyer ------------------------- Edward F. Glassmeyer /s/ Ann H. Lamont ------------------- Ann H. Lamont /s/ Eileen M. More -------------------- Eileen M. More /s/ Seth L. Harrison ---------------------- Seth L. Harrison SCHEDULE I OAK MANAGEMENT CORPORATION Executive Officers - ------------------ Edward F. Glassmeyer, President Michele Cassidy, CFO, Treasurer and Secretary Directors - --------- Gerald R. Gallagher Ann H. Lamont Fredric W. Harman Bandel L. Carano Seth L. Harrison Eileen M. More -----END PRIVACY-ENHANCED MESSAGE-----