-----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, Co3oey8Gj+0wpHUN8+mmTzsii9H/uHiYoX/1BVrpE7ChJ2KxfYdfJoYxdcT8FrmN pJ3uyu6LB9RllN6c+Mgnuw== 0001012118-02-000053.txt : 20020610 0001012118-02-000053.hdr.sgml : 20020610 20020607172535 ACCESSION NUMBER: 0001012118-02-000053 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20020607 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL MICROCOMPUTER SOFTWARE INC /CA/ CENTRAL INDEX KEY: 0000814929 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 942862863 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-39723 FILM NUMBER: 02674189 BUSINESS ADDRESS: STREET 1: 75 ROWLAND WAY CITY: NOVATO STATE: CA ZIP: 94945 BUSINESS PHONE: 4158784000 MAIL ADDRESS: STREET 1: 1895 EAST FRANCISCO BLVD CITY: SAN RAFAEL STATE: CA ZIP: 94901 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: DIGITAL CREATIVE DEVELOPMENT CORP CENTRAL INDEX KEY: 0001016951 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 341413104 STATE OF INCORPORATION: UT FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 7400 BAY MEADOWS WAY STREET 2: SUITE 300 CITY: JACKSONVILLE STATE: FL ZIP: 32256 BUSINESS PHONE: 9047391200 MAIL ADDRESS: STREET 1: 7400 BAYMEADOWS WAY STREET 2: SUIT E300 CITY: JACKSONVILLE STATE: FL ZIP: 32256 FORMER COMPANY: FORMER CONFORMED NAME: ARTHUR TREACHERS INC /FL/ DATE OF NAME CHANGE: 19960620 SC 13D 1 form13d.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 International Microcomputer Software, Inc. (Name of Issuer) Common Stock, no par value (Title of Class of Securities) 459862306 (CUSIP Number) Steven W. Schuster, Esq. McLaughlin & Stern, LLP 260 Madison Avenue (212) 448-1100 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) May 3, 2002 (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 this statement //. Page 1 of 4 Pages 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Digital Creative Development Corporation ("Digital") 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / / (b) / / 3 SEC USE ONLY 4 SOURCE OF FUNDS WC 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDING IS / / REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) 6 CITIZENSHIP OR PLACE OF ORGANIZATION Utah NUMBER 7 SOLE VOTING POWER 9,000,000 OF SHARES BENEFICIALLY 8 SHARED VOTING POWER -0- OWNED BY EACH 9 SOLE DISPOSITIVE POWER 9,000,000 REPORTING PERSON WITH 10 SHARED DISPOSITIVE POWER -0- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,000,000 shares 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES / / CERTAIN SHARES 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 41.6% 14 TYPE OF REPORTING PERSON CO Page 2 of 4 Pages Item 1. Security and Issuer. This Statement of Beneficial Ownership on Schedule 13-D relates to shares of Common Stock, no par value per share (the ''Common Stock''), of International Microcomputer Software, Inc., a California corporation (the ''Issuer''), which has its principal executive offices located at 75 Rowland Way, Novato, CA 94945. The reporting date (the ''Reporting Date'') with respect to the transactions covered hereby is May 3, 2002. Item 2. Identity and Background. (a) Name: Digital Creative Development Corporation (b) Address: c/o Burnham Securities, Inc. (c) Principal Business: Investments (d) Involvement in certain legal proceedings: Not Applicable. (e) Party to a civil proceeding: Not Applicable. (f) Place of Organization: Utah Item 3. Source of Funds On August 31, 2001, the Issuer and Digital entered into an Agreement and Plan of Merger and Reorganization (the "Merger Agreement") pursuant to which Digital was to merge with and into DCDC Merger, Inc. ("Merger Sub"), a California corporation and wholly owned subsidiary of the Issuer, and Merger Sub was to continue as the surviving corporation. Simultaneously, and pursuant to the Merger Agreement, Digital agreed to purchase for $2,500,000 all rights as lender and holder under a promissory note between Union Bank of California and the Issuer in the original principal amount of $3,580,000. As reported in Digital's Current Report on Form 8-K filed on March 18, 2002, the Issuer entered into a "Mutual Termination Agreement and Release" with Digital whereby the Merger Agreement was terminated and each company was released from all duties, rights, claims, obligations and liabilities arising from, in connection with, or relating to, the Merger Agreement. Furthermore, the two companies agreed to enter into an agreement entitled "Promissory Note Conversion and General Release" pursuant to which Digital agreed to cancel the entire outstanding principal amount of $3,580,000 and all interest due on the promissory note that Digital had acquired in return for 9,000,000 shares of Common Stock of the Issuer (the "Shares"), and cash in the amount of $250,000 to be paid in monthly installments over 15 months as follows: $10,000 per month for the first five installments starting March 1, 2002; and $20,000 per month for ten months thereafter. The Shares were issued on May 3, 2002. Item 4. Purpose of Transaction The Reporting Person purchased the Common Stock for the purpose of investing in the Issuer. The Reporting Person is not interested in and has no plans or proposals which would result in the items described in Item 4(a)-(j). Item 5. Interest in Securities of the Issuer. (a) and (b) The information set forth in Rows 7, 8, 9, 10, 11 and 13 of the cover page hereto for Digital is incorporated by reference. (c) No trading for the purchase or sale of Common Stock have occurred in the last sixty (60) days. (d) No other person is known to have the right to receive or the power to direct the receipt of dividends from, or the proceed from the sale of the shares of Common Stock disclosed herein. (e) Not applicable. Page 3 of 4 Item 6. Contracts, Arrangement, Understandings or Relationships with Respect to Securities of the Issuer. Not applicable. Item 7. Material to be filed as Exhibits. 10.1 Promissory Note Conversion and General Release between the Issuer and Digital dated February 28, 2002. SIGNATURES After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this Statement is true, complete and correct. Date: June 6, 2002 DIGITAL CREATIVE DEVELOPMENT CORPORATION /s/Gary Herman BY: Gary Herman TITLE: Chief Executive Officer Page 4 of 4 EX-10 3 ex1001.txt EXHIBIT 10.01 PROMISSORY NOTE CONVERSION AND GENERAL RELEASE This Promissory Note Conversion Agreement and General Release ("Agreement") is made and entered into this 28th day of February, 2002 by and between Digital Creative Development Corporation, a Utah corporation ("Note Holder"), and International Microcomputer Software, Inc., a California corporation ("IMSI"). WHEREAS, Note Holder and IMSI entered into that certain Agreement and Plan of Merger dated August 31, 2001 (the "Merger Agreement"); WHEREAS, pursuant to the Merger Agreement, Note Holder acquired all of the rights of the lender under, and became the holder of, a Promissory Note originally entered into between Union Bank of California and IMSI, in the principal sum of $3,580,000 (the "Note"); WHEREAS, Note Holder and IMSI have entered into that certain Mutual Termination Agreement and Release of even date herewith, pursuant to which Note Holder and IMSI have agreed to terminate the merger contemplated by the Merger Agreement; WHEREAS, Note Holder is currently owed the principal amount of $3,580,000 by IMSI under the terms of the Note; WHEREAS, Note Holder and IMSI wish to cancel the Note and in exchange therefore IMSI shall issue to Note Holder cash and shares of common stock of IMSI and terminate all remaining outstanding obligations of IMSI under the Note; NOW THEREFORE, in consideration of the premises, mutual covenants, understandings and agreements contained in this Agreement and other good and valuable consideration received pursuant hereto, and to settle all of the parties' claims against each other, it is hereby agreed by and among the parties as follows: 1.Conversion of Note. Effective as of the date of this Agreement, all of the outstanding principal and accrued interest under the Note shall be converted into 9,000,000 shares of Common Stock of IMSI (the Shares), plus cash in the amount of $250,000, to be paid to Note Holder in monthly installments over 15 months in the amount $10,000 per month for the first five installments, with the first installment due on March 1, 2002, and $20,000 per month for the sixth through fifteenth monthly installment. Contemporaneously with the execution of this Agreement, Note Holder shall deliver the Note to the Company for conversion, such conversion to be effective upon the date of this Agreement. 2.Registration Rights. IMSI shall use its best efforts to prepare and file a registration statement registering 2,000,000 of the Shares (the Demand Shares) with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended, within 30 days of the date hereof and cause such registration as soon as possible, but no later than 120 days from the date hereof. IMSI agrees and acknowledges that Note Holder shall have ordinary and customary piggyback registration rights with respect to the remaining 7,000,000 of the Shares (the Piggyback Shares), such that IMSI agrees to register the Piggyback Shares on any appropriate registration statement it files with the Securities and Exchange Commission other than on Forms S-4 or S-8 or any successor form. 3. Right of First Refusal. In the event Note Holder desires to offer any or all of the Demand Shares to a third party, it shall first offer in writing to sell such Demand Shares to IMSI at the price offered by the third party. Each such offer shall be in writing setting forth the proposed terms and conditions and shall be delivered by certified mail to IMSI, which shall have a period of 45 days from the date of the mailing of such offer within which to accept. 4. Representations of Note Holder. Note Holder represents and warrants to IMSI as follows: (a) Authorization. All action on the part of the Note Holder and, if applicable, its officers, directors and shareholders necessary for the authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein has been taken. The Note Holder has all requisite corporate power to enter into this Agreement and to carry out and perform its obligations under the terms of this Agreement. (b) Acquisition for Investment. The Note Holder is acquiring the Shares hereunder for investment, for its own account, and not for resale or with a view to distribution thereof in violation of the Securities Act of 1933, as amended. (c) Accredited Investor. The Note Holder certifies and represents to IMSI that at the time the Note Holder acquires any of the Shares, the Note Holder will be an "Accredited Investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act and was not organized for the purpose of acquiring the Shares. The Note Holder's financial condition is such that it is able to bear the risk of holding the Shares for an indefinite period of time and the risk of loss of its entire investment. The Note Holder has been afforded the opportunity to ask questions of and receive answers from the management of IMSI concerning this investment and has sufficient knowledge and experience in investing in companies similar to IMSI in terms of IMSI's stage of development so as to be able to evaluate the risks and merits of its investment in IMSI. (d) No Registration. The Note Holder understands that the Shares and the securities that make up the Shares have not been registered under the Securities Act, by reason of their issuance by IMSI in a transaction exempt from the registration requirements of the Securities Act, and that the Shares must continue to be held by the Note Holder unless a subsequent disposition thereof is registered under the Securities Act or is exempt from such registration. The Note Holder understands that the exemptions from registration afforded by Rule 144 (the provisions of which are known to it) promulgated under the Securities Act depend on the satisfaction of various conditions, and that, if applicable, Rule 144 may afford the basis for sales only in limited amounts. (e) No Conflict. The execution and delivery of this Agreement by the Note Holder and the consummation of the transactions contemplated hereby will not conflict with or result in any violation of or default by the Note Holder (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit under (i) any provision of the organizational documents of the Note Holder or (ii) any agreement or instrument, permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulations, applicable to the Note Holder or its properties or assets. (f) No Assignment. Note Holder has not assigned or in any other way conveyed, transferred or encumbered all or any portion of the claims or rights covered by this Agreement. Note Holder executes this Agreement voluntarily, after consultation with counsel, and with full knowledge of its significance. 5. Representations of IMSI. IMSI represents and warrants to Note Holder as follows: (a) Authorization. All action on the part of IMSI and, if applicable, its officers, directors and shareholders necessary for the authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein has been taken. IMSI has all requisite corporate power to enter into this Agreement and to carry out and perform its obligations under the terms of this Agreement. (b) No Conflict. The execution and delivery of this Agreement by IMSI and the consummation of the transactions contemplated hereby will not conflict with or result in any violation of or default by IMSI (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit under (i) any provision of the organizational documents of IMSI or (ii) any agreement or instrument, permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulations, applicable to IMSI or its properties or assets. (c) No Assignment. IMSI has not assigned or in any other way conveyed, transferred or encumbered all or any portion of the claims or rights covered by this Agreement. 6. Legends. Each certificate representing any of the Shares shall be endorsed with the legend set forth below, and Note Holder covenants that, except to the extent such restrictions are waived by IMSI, it shall not transfer the Shares represented by any such certificate without complying with the restrictions on transfer described in this Agreement and the legend endorsed on such certificate: "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SAID ACT AND, IF REQUESTED BY IMSI, UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IMSI THAT THE PROPOSED TRANSFER IS EXEMPT FROM SAID ACT." 7. Note Holder's General Release of Claims. As additional consideration for IMSI's issuance of the Shares, Note Holder hereby releases and forever discharges IMSI and its directors, officers, employees, attorneys, stockholders and agents, from all actions, and causes of action, judgments, executions, suits, debts, claims, demands, liabilities, counterclaims and offsets of every character, known or unknown, direct and/or indirect, at law or in equity, of whatever kind or nature which have arisen or accrued through the date hereof, including, without limitation, those directly or indirectly arising out of or in any way connected with the sale of Shares through such date, and any rights of Note Holder under the Note or Merger Agreement except as set forth in the Mutual Termination Agreement and Release between the parties hereto of even date herewith. Note Holder hereby waives all rights which it may have under the provisions of California Civil Code Section 1542, which reads as follows: A general release does not extend to claims Which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. Note Holder understands the statutory language of Section 1542 of the California Civil Code, and nevertheless elects to and hereby specifically releases all claims, whether known or unknown, as described above, and specifically waives any rights which he may have under said Civil Code Section. 8. Miscellaneous. (a) Waiver. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement. (b) Expenses. Each party will bear its own costs and expenses in connection with this Agreement. (c) Assignment. The rights and obligations of the parties hereto shall inure to the benefit of and shall be binding upon the authorized successors and permitted assigns of each party. Neither party may assign its rights or obligations under this Agreement or designate another person (i) to perform all or part of its obligations under this Agreement or (ii) to have all or part of its rights and benefits under this Agreement, in each case without the prior written consent of the other party. In the event of any assignment in accordance with the terms of this Agreement, the assignee shall specifically assume and be bound by the provisions of the Agreement by executing and agreeing to an assumption agreement reasonably acceptable to the other party. (d) Survival. The respective representations and warranties given by the parties hereto, and the other covenants and agreements contained herein, shall survive the Closing Date and the consummation of the transactions contemplated herein for a period of one year, without regard to any investigation made by any party. (e) Entire Agreement. This Agreement and the Mutual Termination Agreement and Release between the parties hereto of even date herewith constitute the entire agreement between the parties hereto respecting the subject matter hereof and supersedes all prior agreements, negotiations, understandings, representations and statements respecting the subject matter hereof, whether written or oral. No modification, alteration, waiver or change in any of the terms of this Agreement shall be valid or binding upon the parties hereto unless made in writing and duly executed by IMSI and the Note Holder. (f) Counterparts. This Agreement may be executed in a number of counterparts, each of which together, shall for all purposes constitute one Agreement, binding on all of the parties hereto, notwithstanding that all such parties have not signed the same counterpart. (g) Governing Law. The laws of California will govern this Agreement, its interpretation and construction, and all issues pertaining to it. (h) Binding Effect. This Agreement shall be binding upon and inure to the (i)Severability. If any provision of this Agreement is invalid, illegal or unenforceable under any applicable statute or rule of law, it is to that extent to be deemed omitted. The remainder of the Agreement shall be valid and enforceable to the maximum extent possible. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. ACKNOWLEDGED AND AGREED: INTERNATIONAL MICROCOMPUTER SOFTWARE, INC. By:_______________________________ Title:_______________________________ ___/____/____ Signature Date DIGITAL CREATIVE DEVELOPMENT CORPORATION By: ______________________________ Title:____________________________ ____/____/____ Signature Date -----END PRIVACY-ENHANCED MESSAGE-----