<PAGE>
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
FORM 10-KA
- --------------------------------------------------------------------------------
/X/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-8186
DAIN RAUSCHER CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 41-1228350
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation of organization)
DAIN RAUSCHER PLAZA, 60 SOUTH SIXTH STREET
MINNEAPOLIS, MINNESOTA 55402-4422
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612) 371-2711
Securities registered pursuant to Section 12(b) of the Act:
NAME OF EACH EXCHANGE
TITLE OF EACH CLASS ON WHICH REGISTERED
------------------- ---------------------
Common Stock, par value $.125 per share New York Stock Exchange, Inc.
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
---- ----
Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K (Sections229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
[X]
As of March 3, 1999, 12,508,575 shares of common stock were
outstanding, and the aggregate market value of the common shares (based upon the
closing price at March 3, 1999, on the New York Stock Exchange) of Dain Rauscher
Corporation, held by non-affiliates was approximately $256,206,669.
DOCUMENTS INCORPORATED BY REFERENCE
Portionsof the Proxy Statement of Registrant to be filed within 120 days of
December 31, 1998 are incorporated in Part III of this report.
- --------------------------------------------------------------------------------
1
<PAGE>
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULE AND REPORTS ON FORM 8-K:
(a) Documents filed as part of this Report:
<TABLE>
<CAPTION>
Page
----
<S> <C>
1. Financial statements:
Reference is made to the table of contents to financial statements and financial statement
schedule hereinafter contained.........................................................................45*
2. Financial statement schedules:
Reference is made to the table of contents to financial statements and financial statement
schedule hereinafter contained for all other financial statement schedules.............................45*
</TABLE>
*Refers to page number in original Form 10-K filing for the year ended December
31, 1998.
2
<PAGE>
3. Exhibits:
<TABLE>
<CAPTION>
ITEM NO. ITEM METHOD OF FILING
------- ---- ----------------
<S> <C> <C>
2.1 Agreement and Plan of Merger, dated February 8, Filed as Exhibit 2.1 to the Company's Report on Form
1998 among Dain Rauscher Corporation, Dain 8-K dated March 31, 1998.
Rauscher Incorporated and Wessels, Arnold &
Henderson Group, L.L.C. and Wessels, Arnold &
Henderson, L.L.C..
3.1 Restated Certificate of Incorporation of the Incorporated by reference to Exhibit 4.1 to the
Company. Company's Quarterly Report on Form 10-Q/A dated March
31, 1998, File No. 333-26947.
3.2 Amended and Restated Bylaws of the Company. Incorporated by reference to Exhibit 3.1 to the
Company's Quarterly Report on Form 10-Q dated
September 30, 1996.
4.1 Rights Agreement dated April 30, 1997. Incorporated by reference to the Company's
Registration Statement on Form 8 dated May 1, 1997.
4.2 Credit Agreement dated June 27, 1997. Incorporated by reference to Exhibit 4.1 to the
Company's Quarterly Report on Form 10-Q dated June 30,
1997.
4.3 First Amendment to Credit Agreement dated Incorporated by reference to Exhibit 10.8 to the
December 22, 1997. Company's Annual Report on Form 10-K dated December
31, 1997.
4.4 Amended and restated credit agreement dated Filed herewith.**
March 20, 1998.
10.1* 1986 Stock Option Plan, as amended on April 24, Incorporated by reference to Exhibit 10(b) to the
1987, May 9, 1990, March 3, 1993 Company's Current Report on Form 8-K dated July 15,
and April 27, 1993. 1993.
10.2 Form of Indemnity Agreement with Directors and Incorporated by reference to Exhibit 10(c) to the
Officers of the Company. Company's Annual Report on Form 10-K for the year
ended December 31, 1990.
10.3* Form of Non-Employee Director Retirement Incorporated by reference to Exhibit 10(g) to the
Compensation Agreement. Company's Annual Report on Form 10-K for the year
ended December 31, 1992.
10.4* IFG Executive Deferred Compensation Plan dated Incorporated by reference to Exhibit 10(a) to the
March 31, 1993. Company's Current Report on Form 8-K dated July 15,
1993.
10.5 Trust Agreement for IFG Executive Deferred Incorporated by reference to Exhibit 10.5 to the
Compensation Plan dated February 11, 1994. Company's Annual Report on Form 10-K dated December 31, 1994.
10.7* 1996 Stock Incentive Plan. Incorporated by reference to Exhibit 10 to the
Company's Quarterly Report on Form 10-Q dated March
31, 1996.
10.8* Offer of Employment and Amended Offer of Incorporated by reference to Exhibit 10.8 to the
Employment Agreements between the Company and Company's Annual Report on Form 10-K dated December
William A. Johnstone dated May 28, 1996, and 31, 1997.
October 9, 1997, respectively.
10.10* Employment Agreement between the Company and Incorporated by reference to Exhibit 10 to the
Kenneth J. Wessels dated March 31, 1998. Company's Quarterly Report on Form 10-Q/A dated
March 31, 1998.
10.11* Revised Employment Agreement between the Filed herewith.**
Company and Kenneth J. Wessels dated March 4,
1999.
11 Computation of net earnings per share. Filed herewith.**
21 List of subsidiaries. Filed herewith.**
23 Independent Auditors' consent. Filed herewith.**
23 Power of Attorney. Filed herewith.**
27 Financial Data Schedule. Filed herewith.**
<PAGE>
99 Cautionary Statements for Purposes of the Filed herewith.**
"Safe Harbor" Provision of the Private
Securities Litigation Reform Act of 1995.
</TABLE>
* Management contract or compensatory plan or arrangement required
to be filed as an exhibit pursuant to Item 14(c) of this report.
** Refers to original Form 10-K filing for year ended December 31, 1998.
(b) One report on Form 8-K was filed during the fourth quarter of 1998.
(1) Item Reported
Exhibit 99 - Press release announcing registrant's settlement of
litigation.
Date of earliest event reported - December 3, 1998.
Financial Statements Filed - None
4
<PAGE>
REPORT FOR EMPLOYEE STOCK OWNERSHIP PLAN:
The financial statements required by Form 11-K are hereby furnished as
permitted by Rule 15d-21:
Schedules included:
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Independent Auditors' Report 6
Statement of net assets available for plan benefits as of December 31, 1998 and 1997 7
Statement of changes in net assets available for plan benefits for the years ended December 31,
1998 and 1997 8
Notes to financial statements 9
Schedule 1 - Schedule of assets held for investment purposes 17
Schedule 2 - Reportable transactions for the year ended December 31, 1998 18
Exhibit 23 - Independent auditors' consent
Exhibit 24 - Power of Attorney
</TABLE>
5
<PAGE>
INDEPENDENT AUDITORS' REPORT
Dain Rauscher Benefits Committee
Dain Rauscher Corporation:
We have audited the accompanying statements of net assets available for
plan benefits of the Dain Rauscher Retirement Plan (the Plan) as of
December 31, 1998 and 1997, and the related statements of changes in net
assets available for plan benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for plan benefits of the
Dain Rauscher Retirement Plan as of December 31, 1998 and 1997, and the
changes in net assets available for plan benefits for the years then ended
in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The accompanying supplemental
schedules of assets held for investment purposes and reportable
transactions for the year ended December 31, 1998, are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. The supplemental
schedules have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial
statements taken as a whole.
June 18, 1999
6
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1998 1997
--------------------------------------
<S> <C> <C>
Investments, stated at current market value:
Cash and cash equivalents.............................................. 3,440,485 1,378,934
Dain Rauscher Corporation common stock................................. 98,572,392 249,753,435
Mutual funds
Fidelity Advisor Growth Opportunities Fund........................ 48,477,493 34,775,235
MFS Emerging Growth Fund.......................................... 47,035,665 38,812,212
American Balanced Fund............................................ 39,015,586 39,702,520
Norwest Stable Return Fund........................................ 38,580,221 31,823,459
Putnam Fund for Growth and Income ................................ 33,709,213 31,188,834
Templeton Foreign Fund............................................ 28,053,083 37,383,841
Bond Fund of America ............................................. 8,132,890 6,544,410
IAI Regional Fund................................................. 0 11,009,564
Pioneer Capital Growth Fund....................................... 0 16,724,923
Participant loans...................................................... 7,224,473 8,445,859
-------------- -------------
Total assets held by Plan Trustee...................................... 352,241,501 507,543,226
-------------- -------------
Contributions receivable:
Employer profit sharing................................................ 6,503,042 13,318,799
Employer match......................................................... 591,083 595,961
Employee .............................................................. 177,871 0
Accrued interest and dividends receivable .................................. 0 6,039
Pending trades receivable................................................... 20,900,504 0
-------------- --------------
Net assets available for plan benefits $ 380,414,001 $ 521,464,025
============= =============
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------------
1998 1997
---------------------------------------
<S> <C> <C>
Net assets available for plan benefits, beginning of year ................. $ 521,464,025 $ 148,505,216
--------------- -------------
Investment income:
Interest and dividend income ......................................... 15,887,478 18,153,989
Net realized and unrealized gains / (losses) on securities ........... (122,871,655) 146,118,004
Transfers from IFG Profit Sharing Plan (note 1)............................ 0 221,623,611
Contributions:
Employee ............................................................. 16,001,091 14,858,477
Employer profit sharing............................................... 4,514,712 13,318,799
Employer match........................................................ 4,540,256 3,812,165
Rollovers ............................................................ 1,070,776 743,272
--------------- --------------
Total additions / (subtractions) ........................ (80,857,342) 418,628,317
--------------- --------------
Deductions:
Distributions to participants ........................................ 59,666,741 45,290,404
Trustee and manager fees ............................................. 525,941 379,104
--------------- --------------
Total deductions ........................................ 60,192,682 45,669,508
--------------- --------------
Increase/(decrease) in net assets available for plan benefits (141,050,024) 372,958,809
-------------- --------------
Net assets available for plan benefits, end of year ....................... $ 380,414,001 $ 521,464,025
============== =============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Effective January 1, 1997, the IFG Profit Sharing Plan was merged into the
IFG Stock Bonus Plan. All assets and liabilities of the IFG Profit Sharing
Plan were included in the assets and liabilities for the IFG Stock Bonus
Plan effective January 1, 1997. The combined plan was renamed the IFG
Retirement Plan. In February 1997, the plan's sponsor changed its name to
Interra Financial Incorporated ("Interra") and the IFG Retirement Plan was
renamed the Interra Retirement Plan. On January 2, 1998, Interra changed
its name to Dain Rauscher Corporation ("Dain Rauscher") and the Interra
Retirement Plan was renamed the Dain Rauscher Retirement Plan ("the Plan").
CONTRIBUTIONS
Employee contributions are recorded when payroll deductions are made for
the Plan participants.
DISTRIBUTIONS
Amounts payable to participants who have elected to withdraw from the Plan
are recorded when funds are paid from the Plan.
INVESTMENTS
The investments of the Plan are stated at their current market values at
December 31, 1998 and 1997, as determined by Norwest Bank Minnesota, N.A.
(the Trustee). Purchases and sales of securities are reflected on a
trade-date basis. Dividend income and interest income are recorded as
earned on an accrual basis. The investments of the Plan are held by the
Trustee.
EXPENSES
All fund fees are paid out of the fund for which they are incurred.
Administrative costs and expenses are paid by the Plan. Dain Rauscher has
negotiated a rebate of some of the fund fees which are used to pay Plan
expenses. Any rebates, once offset by plan expenses, are allocated back to
Plan participants based on the participant's total account balance in
proportion to the total Plan assets.
USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of net assets
available for Plan benefits and disclosure of contingent assets and
liabilities as of the date of the financial statements and changes in net
assets available for Plan benefits for the reporting period. Actual results
could differ significantly from those estimates.
2. PLAN DESCRIPTION
ELIGIBILITY
The Plan is a defined contribution plan which provides retirement benefits
to eligible participants. Effective January 1, 1995, employees of Dain
Rauscher or its participating subsidiaries were able to make pre-tax
contributions to the Plan the January 1 or July 1 after completing six
months of service consisting of at least 750 hours of service and if they
are at least 21 years of age. Participants will be eligible to receive
company contributions beginning the January 1 or July 1 following one year
of service consisting of at least 1,000 hours of service and if they are at
least 21 years of age. Effective April 1, 1998, employees of Dain Rauscher
or its
9
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
participating subsidiaries may make pre-tax contributions to the Plan upon
hire and the attainment of age 21. The eligibility rules for company
contributions remain unchanged.
CONTRIBUTIONS
Participants may contribute 1 to 12 percent of recognized compensation to
the Plan. The participant receives a 40 percent employer match on pretax
contributions up to 5 percent of pay. Matching contributions are limited to
$3,000 annually. All matching contributions are paid to the participants'
Dain Rauscher Stock Fund under the Plan. Recognized compensation is defined
in the Plan and generally consists of salary, commissions and other regular
compensation paid to a participant during the Plan year, subject to certain
aggregate limitations under federal regulations.
Dain Rauscher makes an annual profit sharing contribution of at least 3
percent of recognized compensation to eligible employees. Any additional
contribution, if made, is optional and made at the discretion of the Board
of Directors for each of Dain Rauscher's participating employers. To be
eligible to share in the annual employer profit sharing contributions, a
eligible participant must be credited with at least 1,000 hours of service
for the plan year (or a ratable portion of 1,000 hours of service if a
former participant was rehired during the same plan year) and be an
employee on the last day of the Plan year.
Employee and employer contributions are limited to the extent necessary to
comply with sections 401 and 415 of the Internal Revenue Code.
VESTING
Employee contributions are always fully vested. Participants vest in
employer contributions after they have attained five years of service at
which time they become 100 percent vested. Special rules apply for rehired
employees. Employer contributions will also become fully vested if, while
employed, the participant dies, reaches age 55 or retires because of total
and permanent disability. In addition, employer contributions will become
fully vested if the Plan is terminated, there is a "change in control" as
defined in the Plan, or if there is a complete discontinuance of
contributions to the Plan.
LOANS
Participants are eligible to borrow up to 50 percent, not to exceed
$50,000, of certain account balances. Loans are allowed for any reason.
Participants can elect a loan term of between one year and five years for
all loans other than home purchase for which a 10 or 15-year term may be
elected. All loans are charged an interest rate equal to the prime rate
plus one percent on the first working day of the quarter in which the loan
was originated. All loans are repaid through monthly payroll deductions.
INVESTMENTS
Effective January 1, 1997, participants may invest their plan accounts in
any of ten available options. The investment options included the Dain
Rauscher Stock Fund, two domestic equity funds, an international equity
fund, two mid cap equity funds, a small cap equity fund, a balanced fund,
an intermediate bond fund, and a stable return fund. Effective January 1,
1999 two of the investment options were replaced. The IAI Regional Fund and
Pioneer Capital Growth Fund were replaced with the PIMCO Small Cap Value
Fund and the Seligman Frontier Fund. At December 31, 1998 $20,900,504 was
due from the IAI Regional Fund and the Pioneer Capital Growth Fund as a
result of the January 1, 1999 replacement.
10
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
DIVERSIFICATIONS
Eligible participants may elect to direct the sale of their holdings in the
Dain Rauscher Stock Fund with the proceeds being transferred to any of the
other Plan options as directed by the participant.
DISTRIBUTIONS
Generally, participants are eligible for distribution of their vested
account balances after separation of service. Participants may request
in-service distributions for financial hardship purposes as defined in the
Plan. Distributions are limited to the vested balances of certain accounts
within the Plan. In addition, eligible participants may request a special
distribution of certain accounts from the Plan between age 50 and 60,
subject to minimum service requirements. Any participant age 60 or over may
request a full or partial distribution from the Plan. All distributions
from the Plan are made in cash, except for the Dain Rauscher Stock Fund
which is paid in shares of Dain Rauscher common stock, plus cash for any
fractional shares
DIVIDEND PASS-THROUGH
The Dain Rauscher Stock Fund is an Employee Stock Ownership Plan which has
elected dividend pass-through to participants. Dividends received by the
Plan on shares of Dain Rauscher Corporation common stock are distributed
from the Plan to participants as ordinary income.
3. CONTRIBUTIONS
Amounts contributed by each employer and its employees were as follows for
the years ended December 31, 1998 and 1997, respectively (in thousands):
<TABLE>
<CAPTION>
1998 1997
------------------------- ---------------------------
AMOUNT CONTRIBUTED BY AMOUNT CONTRIBUTED BY
------------------------- ---------------------------
EMPLOYEE EMPLOYER EMPLOYEE EMPLOYER
------------ ----------- -------------- -----------
<S> <C> <C> <C> <C>
Dain Rauscher Incorporated (formerly known as......
Dain Bosworth Incorporated)..................... $ 16,001 $ 9,055 $ 9,524 $ 11,056
Rauscher Pierce Refsnes, Inc....................... 0 0 3,968 4,777
Interra Clearing Services Inc (formerly known as...
Regional Operations Group.)..................... 0 0 803 776
Dain Rauscher Corporation (formerly known as
Interra Financial Incorporated.)................ 0 0 387 342
Interra Advisory Services Inc. (formerly known as
IFG Asset Management Services, Inc.)............ 0 0 176 180
--------- --------- --------- --------
$ 16,001 $ 9,055 $ 14,858 $ 17,131
========= ========= ========= ========
</TABLE>
The 1998 and 1997 employer contributions include a match of $4,540,256 and
$3,812,165, respectively, on participant pretax contributions to the Plan
and profit sharing contributions of $4,514,712 and $13,318,799,
respectively. Employer matching contributions have been reduced by
forfeitures of $544,430 and $876,165 for the years ended December 31, 1998
and 1997, respectively. Employer profit sharing contributions have been
reduced by forfeitures of $2,025,601 and $1,412,262 for the years ending
December 31, 1998 and 1997, respectively.
Any forfeited employer contributions are utilized to reduce any
corresponding future employer contributions unless the participant returns
to employment before a specified date as defined by the Plan.
11
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
4. STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
FIDELITY
ADVISOR
BOND AMERICAN PUTNAM FUND GROWTH
NORWEST STABLE FUND OF BALANCED FOR GROWTH OPPORTUNITIES
RETURN FUND AMERICA FUND & INCOME FUND
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1998:
Cash and cash equivalents $ 107,892 $ 24,173 $ 113,777 $ 95,859 $ 137,438
Dain Rauscher common stock 0 0 0 0 0
Mutual funds 38,580,221 8,132,890 39,015,586 33,709,213 48,477,493
Participant loans 0 0 0 0 0
- --------------------------------------------------------------------------------------------------------
38,688,113 8,157,063 39,129,363 33,805,072 48,614,931
- --------------------------------------------------------------------------------------------------------
Employer contribution
receivable 390,027 102,081 956,570 582,116 872,636
Employee contribution
receivable 6,572 4,000 27,404 26,552 38,491
Accrued interest and
dividends receivable 0 0 0 0 0
Receivable from/(Payable to)
mutual funds 211,116 45,701 (6,230) 1,456 (66,103)
- --------------------------------------------------------------------------------------------------------
607,715 151,782 977,744 610,124 845,024
- --------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $39,295,828 $8,308,845 $40,107,107 $34,415,196 $ 49,459,955
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<CAPTION>
MFS PIONEER
TEMPLETON IAI EMERGING CAPITAL
FOREIGN REGIONAL GROWTH GROWTH DAIN RAUSCHER
FUND FUND FUND FUND STOCK FUND LOAN FUND TOTAL
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1998:
Cash and cash equivalents $ 86,493 $ 20,221 $ 143,604 $ 43,183 $ 2,659,961 $ 7,884 $ 3,440,485
Dain Rauscher common stock 0 0 0 0 98,572,392 0 98,572,392
Mutual funds 28,053,083 0 47,035,665 0 0 0 243,004,151
Participant loans 0 0 0 0 0 7,224,473 7,224,473
- ---------------------------------------------------------------------------------------------------------------------------------
28,139,576 20,221 47,179,269 43,183 101,232,353 7,232,357 352,241,501
- ---------------------------------------------------------------------------------------------------------------------------------
Employer contribution
receivable 555,976 165,952 956,349 165,952 2,346,466 0 7,094,125
Employee contribution
receivable 18,105 14 40,528 12,682 105,470 (101,947) 177,871
Accrued interest and
dividends receivable 0 0 0 0 0 0 0
Receivable from/(Payable to)
mutual funds (3,297) 7,060,787 320,097 13,322,583 14,394 20,900,504
- ---------------------------------------------------------------------------------------------------------------------------------
570,784 7,226,753 1,316,974 13,501,217 2,466,330 (101,947) 28,172,500
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $28,710,360 $7,246,974 $48,496,243 $13,544,400 $103,698,683 $7,130,410 $380,414,001
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(CONTINUED)
12
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
4. STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
FIDELITY
ADVISOR
BOND AMERICAN PUTNAM FUND GROWTH
NORWEST STABLE FUND OF BALANCED FOR GROWTH OPPORTUNITIES
RETURN FUND AMERICA FUND & INCOME FUND
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1997:
Cash and cash equivalents $ 11,105 $ 1,648 $ 60,202 $ 226,619 $ (30,702)
Dain Rauscher common stock 0 0 0 0 0
Mutual funds 31,823,459 6,544,410 39,702,520 31,188,834 34,775,235
Participant loans 0 0 0 0 0
- --------------------------------------------------------------------------------------------------------
31,834,564 6,546,058 39,762,722 31,415,453 34,744,533
- --------------------------------------------------------------------------------------------------------
Employer contribution
receivable 790,821 223,165 2,191,000 1,144,890 1,400,669
Accrued interest and
dividends receivable 73 15 91 72 80
- --------------------------------------------------------------------------------------------------------
790,894 223,180 2,191,091 1,144,962 1,400,749
- --------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $32,625,458 $6,769,238 $41,953,813 $32,560,415 $36,145,282
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<CAPTION>
MFS PIONEER
TEMPLETON IAI EMERGING CAPITAL
FOREIGN REGIONAL GROWTH GROWTH DAIN RAUSCHER
FUND FUND FUND FUND STOCK FUND LOAN FUND TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1997:
Cash and cash equivalents $ 91,440 $ 7,667 $ (213,028) $ 9,090 $ 1,117,949 $ 96,944 $ 1,378,934
Dain Rauscher common stock 0 0 0 0 249,753,435 0 249,753,435
Mutual funds 37,383,841 11,009,564 38,812,212 16,724,923 0 247,964,998
Participant loans 0 0 0 0 0 8,445,859 8,445,859
- -----------------------------------------------------------------------------------------------------------------------------------
37,475,281 11,017,231 38,599,184 16,734,013 250,871,384 8,542,803 507,543,226
- -----------------------------------------------------------------------------------------------------------------------------------
Employer contribution
receivable 1,603,891 310,047 1,819,269 799,457 3,631,551 0 13,914,760
Accrued interest and
dividends receivable 86 25 89 38 5,470 0 6,039
- -----------------------------------------------------------------------------------------------------------------------------------
1,603,977 310,072 1,819,358 799,495 3,637,021 0 13,920,799
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $39,079,258 $11,327,303 $40,418,542 $17,533,508 $254,508,405 $8,542,803 $521,464,025
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(CONTINUED)
13
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
4. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
FIDELITY
ADVISOR
BOND AMERICAN PUTNAM FUND GROWTH
NORWEST STABLE FUND OF BALANCED FOR GROWTH OPPORTUNITIES
RETURN FUND AMERICA FUND & INCOME FUND
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1998:
Net assets available for plan
benefits-beginning of year $32,625,458 $ 6,769,238 $ 41,953,813 $32,560,415 $36,145,282
- --------------------------------------------------------------------------------------------------------
Additions:
Interest and dividend income 52,805 583,854 3,877,445 3,042,323 1,949,874
Net realized and unrealized
gain on securities 2,791,603 (287,229) 428,253 1,286,075 6,972,927
Diversification and transfers 14,352,114 2,058,491 (3,604,811) (206,739) 5,682,701
Contributions:
Employee 763,567 276,389 1,796,426 1,652,031 2,016,955
Employer profit sharing 228,373 95,673 307,160 402,918 861,566
Employer match 0 0 0 0 0
Rollovers 120,824 39,509 44,511 164,684 238,623
Loan repayments 179,893 83,404 269,455 166,547 209,043
- --------------------------------------------------------------------------------------------------------
Total additions 18,489,179 2,850,091 3,118,439 6,507,839 17,931,689
- --------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 11,354,617 1,213,891 4,688,497 4,472,097 4,294,703
Trustee and management fees 210,170 11,190 54,799 46,426 65,933
New loans 254,022 85,403 221,849 134,535 256,380
- --------------------------------------------------------------------------------------------------------
Total deductions 11,818,809 1,310,484 4,965,145 4,653,058 4,617,016
- --------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $39,295,828 $ 8,308,845 $40,107,107 $34,415,196 $49,459,955
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<CAPTION>
MFS PIONEER
TEMPLETON IAI EMERGING CAPITAL
FOREIGN REGIONAL GROWTH GROWTH DAIN RAUSCHER
FUND FUND FUND FUND STOCK FUND LOAN FUND TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1998:
Net assets available for plan
benefits-beginning of year $39,079,258 $11,327,303 $40,418,542 $17,533,508 $254,508,405 $ 8,542,803 $ 521,464,025
- -----------------------------------------------------------------------------------------------------------------------------------
Additions:
Interest and dividend income 3,274,769 1,272,708 472,481 667,568 0 693,651 15,887,478
Net realized and unrealized
gain on securities (4,965,397) (1,222,395) 9,445,035 (1,331,467) (135,989,060) 0 (122,871,655)
Diversification and transfers (7,859,788) (4,096,163) (225,621) (2,971,809) (3,128,375) 0 0
Contributions:
Employee 1,960,627 408,260 2,580,032 1,037,874 3,852,422 (343,492) 16,001,091
Employer profit sharing 476,206 159,791 780,311 130,696 1,072,018 0 4,514,712
Employer match 0 0 0 0 4,540,256 0 4,540,256
Rollovers 52,615 59,443 216,847 133,720 0 0 1,070,776
Loan repayments 283,565 51,821 296,734 116,301 1,999,821 (3,656,584) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Total additions (6,777,403) (3,366,535) 13,565,819 (2,217,117) (127,652,918) (3,306,425) (80,857,342)
- -----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 3,369,465 668,250 5,092,438 1,684,429 21,969,320 859,034 59,666,741
Trustee and management fees 39,550 9,636 64,770 18,662 4,805 0 525,941
New loans 182,480 35,908 330,910 68,900 1,182,679 (2,753,066) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Total deductions 3,591,495 713,794 5,488,118 1,771,991 23,156,804 (1,894,032) 60,192,682
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $28,710,360 $7,246,974 $48,496,243 $13,544,400 $103,698,983 $7,130,410 $380,414,001
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(CONTINUED)
14
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
4. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
FIDELITY
ADVISOR
BOND AMERICAN PUTNAM FUND GROWTH
NORWEST STABLE FUND OF BALANCED FOR GROWTH OPPORTUNITIES
RETURN FUND AMERICA FUND & INCOME FUND
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1997:
Net assets available for plan
benefits-beginning of year $ 0 $ 0 $ 0 $ 0 $ 0
- --------------------------------------------------------------------------------------------------------
Additions:
Interest and dividend
income 2,387 379,118 3,706,931 3,855,235 2,166,059
Net realized and
unrealized
gain on securities 1,730,386 158,648 4,038,985 1,045,360 5,132,039
Diversification and 33,641,050 6,396,283 38,485,183 26,950,695 27,980,871
transfers
Contributions:
Employee 630,055 253,745 2,637,407 1,332,714 1,563,898
Employer profit sharing 790,821 223,165 2,191,000 1,144,890 1,400,669
Employer match 0 0 0 0 0
Rollovers 161,495 136,539 33,569 57,749 43,932
Loan repayments 107,357 16,069 261,853 99,843 134,175
- --------------------------------------------------------------------------------------------------------
Total additions 37,063,551 7,563,567 51,354,928 34,486,486 38,421,643
- --------------------------------------------------------------------------------------------------------
Deductions:
Distributions to
participants 4,095,730 744,391 8,980,615 1,723,874 1,992,297
Trustee and management
fees 120,353 3,537 23,000 17,155 19,128
New loans 222,010 46,401 397,500 185,042 264,936
- --------------------------------------------------------------------------------------------------------
Total deductions 4,438,093 794,329 9,401,115 1,926,071 2,276,361
- --------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $32,625,458 $6,769,238 $41,953,813 $32,560,415 $36,145,282
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<CAPTION>
MFS PIONEER
TEMPLETON IAI EMERGING CAPITAL
FOREIGN REGIONAL GROWTH GROWTH DAIN RAUSCHER
FUND FUND FUND FUND STOCK FUND LOAN FUND TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1997:
Net assets available for plan
benefits-beginning of year $ 0 $ 0 $ 0 $ 0 $145,026,932 $ 3,478,284 $148,505,216
- -----------------------------------------------------------------------------------------------------------------------------------
Additions:
Interest and dividend
income 4,146,951 1,243,835 362,032 1,675,607 18,888 596,946 18,153,989
Net realized and
unrealized
gain on securities (1,333,377) 506,327 5,821,376 805,676 128,212,584 0 146,118,004
Diversification and
transfers 35,149,935 9,588,937 32,028,729 14,793,973 (6,316,381) 2,924,336 221,623,611
Contributions:
Employee 2,141,013 371,833 2,420,820 1,045,975 2,461,017 0 14,858,477
Employer profit sharing 1,603,891 310,047 1,819,269 799,455 3,035,592 0 13,318,799
Employer match 0 0 0 0 3,812,165 0 3,812,165
Rollovers 152,898 10,913 80,122 66,055 0 0 743,272
Loan repayments 176,230 32,332 188,117 86,540 1,714,335 (2,816,851) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Total additions 42,037,541 12,064,224 42,720,465 19,273,281 132,938,200 704,431 418,628,317
- -----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to
participants 2,628,739 687,528 1,917,511 1,571,554 20,648,812 299,353 45,290,404
Trustee and management
fees 20,536 5,876 21,784 9,363 138,372 0 379,104
New loans 309,008 43,517 362,628 158,856 2,669,543 (4,659,441) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Total deductions 2,958,283 736,921 2,301,923 1,739,773 23,456,727 (4,360,088) 45,669,508
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets available for plan
benefits-end of year $39,079,258 $11,327,303 $40,418,542 $17,533,508 $254,508,405 $ 8,542,803 $521,464,025
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
DAIN RAUSCHER RETIREMENT PLAN
5. ADMINISTRATION
For the Plan year ended December 31, 1998 the Plan was administered by a
seven member committee appointed by Dain Rauscher's Board of Directors, all
of whom are employees of Dain Rauscher or its participating subsidiaries.
6. INVESTMENTS
The following investments, stated at fair value, represent 5 percent or
more of the Plan's net assets available for plan benefits at December 31,
1998 and 1997 (in thousands):
<TABLE>
<CAPTION>
1998 1997
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Dain Rauscher Corporation common stock $ 98,572 $ 249,753
Fidelity Advisor Growth Opportunities Fund 48,477 34,775
MFS Emerging Growth Fund 47,036 38,812
American Balanced Fund 39,016 39,703
Norwest Stable Return Fund 38,580 31,823
Putnam Fund for Growth and Income 33,709 31,189
Templeton Foreign Fund 28,053 37,384
</TABLE>
7. FEDERAL INCOME TAX STATUS
The Plan administrator received a favorable determination letter dated
April 5, 1999, from the United States Treasury Department stating that the
Plan constitutes a qualified plan under Section 401(a) and the 4975(e)(7)
of the Internal Revenue Code (the Code) and that the trust created under
the Plan is therefore exempt from federal income taxes under the provisions
of Section 501(a).
The Plan administrator believes that the Plan and its related trust
continue to qualify under the provisions of Section 401(a), 4975(e)(7), and
501(a) of the Code and are exempt from federal income taxes.
Participants are not taxed currently on their pretax contributions, on the
employers' contributions to the Plan, or on income earned by the Plan.
Dividends paid to participants on Dain Rauscher common stock allocated to
their Dain Rauscher Stock Fund are subject to tax in the year received.
Distributions are generally subject to federal income tax at the time of
distribution if they are not rolled to an Individual Retirement Account or
other qualified plan.
8. PARTY-IN-INTEREST TRANSACTIONS
Norwest Bank Minnesota, N.A. is a party-in-interest with respect to the
Plan. In the opinion of the Plan administrator, transactions between the
Plan and the aforementioned party-in-interest are exempt from being
considered as "prohibited transactions" under ERISA Section 408(b).
16
<PAGE>
SCHEDULE 1
DAIN RAUSCHER RETIREMENT PLAN
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
DESCRIPTION UNITS COST MARKET VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash and cash equivalents:
NWADV CTF Short Term Investment Fund* 3,415,350 $ 3,415,350 $ 3,415,350
Cash 25,135 25,135 25,135
- -------------------------------------------------------------------------------------------------------------------------
Total cash and cash equivalents 3,440,485
3,440,485
- -------------------------------------------------------------------------------------------------------------------------
Dain Rauscher Corporation common stock 3,341,437 41,712,606 98,572,392
- -------------------------------------------------------------------------------------------------------------------------
Mutual Funds:
Fidelity Advisor Growth Opportunities Fund Class T 964,918 39,013,193 48,477,493
MFS Emerging Growth Fund Class A 1,054,611 35,776,413 47,035,665
American Balanced Fund 2,475,608 37,439,832 39,015,586
Norwest Stable Return Fund* 1,442,413 36,702,835 38,580,221
Putnam Fund for Growth & Income Class A 1,645,154 32,551,846 33,709,213
Templeton Foreign Fund 3,343,633 33,666,186 28,053,083
Bond Fund of America 597,567 8,226,398 8,132,890
- -------------------------------------------------------------------------------------------------------------------------
Total mutual funds 223,376,703 243,004,151
- -------------------------------------------------------------------------------------------------------------------------
268,529,794 345,017,028
- -------------------------------------------------------------------------------------------------------------------------
Participant Loans (interest rates of 7% to 12%) 7,224,473 7,224,473
- -------------------------------------------------------------------------------------------------------------------------
Total investments $ 275,754,267 $ 352,241,501
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
The data in this schedule is based upon information which has been certified as
complete and accurate by Norwest Bank, Minnesota N.A.
* Known to be a party-in-interest
See accompanying independent auditors' report.
17
<PAGE>
SCHEDULE 2
DAIN RAUSCHER RETIREMENT PLAN
ITEM 27(D) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
(IN THOUSANDS, EXCEPT FOR NUMBER OF TRANSACTIONS)
<TABLE>
<CAPTION>
FAIR VALUE OF
DESCRIPTION NUMBER OF PURCHASE SELLING ASSET AS OF DATE
PARTY INVOLVED OF TRANSACTION TRANSACTIONS PRICE PRICE OF TRANSACTION NET GAIN
- ------------------------- ---------------------------- ---------------- ------------ ----------- ------------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Norwest Bank Minnesota, Purchases of NWCTF Stable
NA * Return Fund 130 $49,456 $49,455 --
Norwest Bank Minnesota, Sales of NWCTF Stable
NA * Return Fund 119 $45,219 $45,219 $1,853
Norwest Bank Minnesota, Purchases of Putnam Fund
NA * for Growth & Income 127 $25,767 $25,767 --
Norwest Bank Minnesota, Sales of Putnam Fund for
NA * Growth & Income 125 $24,629 $24,629 $1,204
Norwest Bank Minnesota, Purchases of NWADV Short
NA * Term Investment Fund
53 $1,882 $1,882 --
Norwest Bank Minnesota, Sales of NWADV Short Term
NA * Investment Fund 17 $1,256 $1,256 --
</TABLE>
The data in this schedule is based upon information which has been certified as
complete and accurate by Norwest Bank, Minnesota, N.A.
* Known to be a party-in-interest.
See accompanying independent auditors' report.
18
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934, THE REGISTRANTS HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS
BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED:
DAIN RAUSCHER CORPORATION
Registrant
Date: June 29, 1999 By David J. Parrin
---------------------- -----------------------------
David J. Parrin
Senior Vice President
and Controller
(Principal Accounting Officer)
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS REPORT
HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT IN
THE CAPACITIES INDICATED:
SIGNATURE TITLE
Irving Weiser Chairman of the Board, President,
- ----------------------------- Chief Executive Officer
Irving Weiser (Principal Executive Officer)
and Director
John C. Appel Vice Chairman, Chief
- ------------------------------ Financial Officer
John C. Appel (Principal Financial Officer)
and Director
Kenneth J. Wessels Senior Executive Vice President
- ------------------------------ and Director
Kenneth J. Wessels
David J. Parrin Senior Vice President and Controller
- ------------------------------ (Principal Accounting Officer)
David J. Parrin
J. Evans Attwell Director
- ------------------------------
J. Evans Attwell
Susan S. Boren Director
- ------------------------------
Susan S. Boren
F. Gregory Fitz-Gerald Director
- ------------------------------
F. Gregory Fitz-Gerald
Walter F. Mondale Director
- ------------------------------
Walter F. Mondale
C.A. Rundell, Jr. Director
- ------------------------------
C.A. Rundell, Jr.
Robert L. Ryan Director
- ------------------------------
Robert L. Ryan
Arthur R. Schulze, Jr. Director
- ------------------------------
Arthur R. Schulze, Jr.
19
<PAGE>
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
Dain Rauscher Corporation:
We consent to the incorporation by reference in Registration
Statement No. 333-53851, Registration Statement No. 333-03113, Registration
Statement No. 333-20487, Registration Statement No. 33-58069, Registration
Statement No. 33-54223, Registration Statement No. 33-54907, Registration
Statement No. 33-59426, Registration Statement No. 33-39182, Registration
Statement No. 33-25979, post-effective amendment No. 1 to Registration
Statement No. 33-13068, post-effective amendment No. 2 to Registration
Statement No. 33-10243, post-effective amendment No. 2 to Registration
Statement No. 33-10242, post-effective amendment No. 4 to Registration
Statement No. 2-90634, post-effective amendment No. 8 to Registration
Statement No. 2-61514, post-effective amendment No. 11 to Registration
Statement No. 2-57759, post-effective amendment No. 15 to Registration
Statement No. 2-53289, post-effective amendment No. 16 to Registration
Statement No. 2-51150 and Registration Statement No. 1-08186 of Dain Rauscher
Corporation, and subsidiaries of our report dated February 3, 1999, relating
to the consolidated balance sheets of Dain Rauscher Corporation and
subsidiaries as of December 31, 1998 and 1997 and the consolidated statements
of operations, shareholders' equity and cash flows and the related financial
statement schedule for each of the years in the three-year period ended
December 31, 1998, which report appears in the December 31, 1998 Annual
Report on Form 10-K of Dain Rauscher Corporation.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
March 18, 1999
<PAGE>
EXHIBIT 24
POWER OF ATTORNEY
THE UNDERSIGNED HEREBY CONSTITUTE AND APPOINT IRVING WEISER, JOHN C.
APPEL, AND DAVID J. PARRIN, AND EACH OF THEM, HIS TRUE AND LAWFUL
ATTORNEYS-IN-FACT AND AGENTS, WITH FULL POWERS OF SUBSTITUTION AND
RESUBSTITUTION, FOR HIM AND IN HIS NAME, PLACE AND STEAD, IN ANY AND ALL
CAPACITIES, TO SIGN THE ANNUAL REPORT ON FORM 10-K OF DAIN RAUSCHER CORPORATION
FOR THE FISCAL YEAR ENDING DECEMBER 31, 1998 AND ALL AMENDMENTS TO SUCH ANNUAL
REPORT ON FORM 10-K, AND TO FILE THE SAME WITH ALL EXHIBITS THERETO, AND OTHER
DOCUMENTS IN CONNECTION THEREWITH, WITH THE SECURITIES AND EXCHANGE COMMISSION,
GRANTING UNTO SAID ATTORNEYS-IN-FACT AND AGENTS, EACH ACTING ALONE, FULL POWER
AND AUTHORITY TO DO AND PERFORM TO ALL INTENTS AND PURPOSES AS HE MIGHT OR COULD
DO IN PERSON, HEREBY RATIFYING ALL THAT SAID ATTORNEYS-IN-FACT AND AGENTS, EACH
ACTING ALONE, OR HIS SUBSTITUTES, MAY LAWFULLY DO OR CAUSE TO BE DONE BY VIRTUE
THEREOF.
SIGNATURE DATE
- ----------------------------- ---------------------------
JOHN C. APPEL
- ----------------------------- ---------------------------
J. EVANS ATTWELL
- ------------------------------ ---------------------------
SUSAN S. BOREN
- ------------------------------ ---------------------------
F. GREGORY FITZGERALD
- ------------------------------ ---------------------------
WALTER F. MONDALE
- ------------------------------- ---------------------------
C. A. RUNDELL, JR.
- ------------------------------- ---------------------------
ROBERT L. RYAN
<PAGE>
- ------------------------------- ---------------------------
ARTHUR R. SCHULZE, JR.
- ------------------------------- ---------------------------
IRVING WEISER
- ------------------------------- ---------------------------
KENNETH J. WESSELS
