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OMB Number 3235-0145
Expires: August 31, 1991
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1 )*
------
Capsure Holdings Corp.
- --------------------------------------------------------------------------------
(NAME OF ISSUER)
Common Stock, par value $.05 per value
- --------------------------------------------------------------------------------
(TITLE OF CLASS OF SECURITIES)
140673104
- --------------------------------------------------------------------------------
(CUSIP NUMBER)
Susan Obuchowski
Two N. Riverside Plaza, Suite 600, Chicago, IL 60606 (312) 466-4010
- --------------------------------------------------------------------------------
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED TO RECEIVE NOTICES AND
COMMUNICATIONS)
December 18, 1996
- --------------------------------------------------------------------------------
(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 our for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
1 of 25
<PAGE> 2
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 2 OF 25 PAGES
---------------- --- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Samuel Zell
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 50,000
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 4,039,622
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
50,000
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,039,622
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,089,622
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
25.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 3 OF 25 PAGES
---------------- ----- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sammuel Zell Revocable Trust U/T/A 01/17/90
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 4,039,622
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,039,622
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,039,622
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
25.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
00
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 4 OF 25 PAGES
---------------- --- ----
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Alphabet Partners, an Illinois general partnership
36-3002855
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
730,141
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 5 OF 25 PAGES
---------------- --- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ZFT Partnership, an Illinois general partnership
36-3022976
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
730,141
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 6 OF 25 PAGES
---------------- --- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ann Lurie
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
973,520
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
--------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.2%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 7 OF 25 PAGES
---------------- --- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ann Lurie Revocable Trust U/T/A 12/22/89
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
486,760
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
00
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 8 OF 25 PAGES
---------------- --- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LFT Partnership, an Illinois general partnership
36-6527526
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
486,760
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 9
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 9 OF 25 PAGES
---------------- --- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Equity Capsure Limited Partnership, an Illinois limited partnership
Applied for
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 4,039,622
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,039,622
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,039,622
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
25.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 10
SCHEDULE 13D
CUSIP NO. 140673104 PAGE 10 OF 25 PAGES
---------------- --- ------
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Arlington Leasing Co.
88-0132727
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) OR 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
997,369
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) / /
EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.3%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 11
ONLY THOSE ITEMS AMENDED ARE REPORTED HEREIN.
CAPITALIZED TERMS NOT OTHERWISE DEFINED HEREIN SHALL HAVE
THE SAME MEANING AS THEY HAVE IN THE INITIAL SCHEDULE 13D.
Item 2. Identity and Background
-----------------------
(a) - (c) This Item is being amended to add the following entities
as Reporting Persons:
1) Equity Capsure Limited Partnership, an Illinois limited
partnership ("Equity"); and
2) Arlington Leasing Co., a Nevada
corporation ("Arlington").
The sole general partner of Equity is the Zell Trust. The limited
partners of Equity are: the Zell Trust, Alphabet Partners; ZFT
Partnership; the Lurie Trust; LFT Partnership and Arlington.
The business address for Equity and Arlington is Two N. Riverside
Plaza, Chicago, IL 60606-2607. Certain information concerning
Equity and Arlington is set forth in Appendix B hereto. The
business address for the individuals listed in Appendix B is Two N.
Riverside Plaza, Chicago, IL 60606-2607.
(d) and (e) None of the Reporting Persons, nor, to the best
knowledge of the Reporting Persons, any of the persons listed in
Appendix A filed with the initial Schedule 13D or Appendix B
attached hereto, have, during the last five years (i) been convicted
in a criminal proceeding (excluding traffic violations or similar
misdemeanors), or (ii) been 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
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
-------------------------------------------------
On December 18, 1996, the following Reporting Persons contributed the
number of shares of Common Stock shown opposite such Reporting
Persons' name to Equity in return for a partnership interest in
Equity:
<TABLE>
<CAPTION>
NUMBER OF SHARES
REPORTING PERSON CONTRIBUTED
----------------- --------------------
<S> <C>
Zell Trust 608,451
Alphabet Partners 730,141
LFT Partnership 486,760
ZFT Partnership 730,141
Lurie Trust 486,760
Arlington 997,369
</TABLE>
No funds were expended by Equity for the contribution of the shares
to Equity.
Page 11 of 25
<PAGE> 12
Item 4. Purpose of Transaction
----------------------
The purpose of the contribution of the shares to Equity was to
restructure the Reporting Persons' manner of ownership of the Common
Stock reported herein.
On December 19, 1996, Equity entered into a Voting Agreement among
Equity, Continental Casualty Company ("CCC"), Bruce A. Esselborn and
Rod F. Dammeyer ("Voting Agreement") wherein Equity agreed to vote all
of the shares of Common Stock beneficially owned by it in favor of a
merger of the surety business of CCC with and into the Issuer which
will result in a plan or proposal of the type referred to in clauses
(a) through (j) of Item 4. of Schedule 13D. The Voting Agreement is
attached hereto as Exhibit 3 and is incorporated herein by reference.
Additionally, in order to secure Equity's obligation to vote its
shares of Common Stock in favor of the above-described merger, Equity
appointed CCC as its true and lawful proxy and attorney in fact and
granted CCC an Irrevocable Proxy for such purpose. The Irrevocable
Proxy is attached hereto as Exhibit 4 and is incorporated herein by
reference.
Item 5. Interest in Securities of the Issuer
------------------------------------
(a) To the best knowledge of the Reporting Persons, there are
15,777,749 shares of Common Stock outstanding as of the date hereof.
As of the date hereof, the Reporting Persons may be deemed to own
the number of shares of Common Stock opposite their name which
represents the following percentages of the shares of Common Stock
outstanding:
<TABLE>
<CAPTION>
REPORTING PERSON NUMBER OF SHARES PERCENTAGE OF OUTSTANDING
----------------- ------------------------- ----------------------------------
<S> <C> <C>
Samuel Zell 4,089,622(1) 25.8%(1)
Zell Trust 4,039,622(1) 25.6%(1)
Alphabet Partners 730,141(2) 4.6%(2)
ZFT Partnership 730,141(2) 4.6%(2)
Ann Lurie 973,520(2)(3) 6.2%(2)(3)
Lurie Trust 486,760(2) 3.1%(2)
LFT Partnership 486,760(2) 3.1%(2)
Equity 4,039,622 25.6%
Arlington 997,369(2) 6.3%(2)
</TABLE>
(1) Includes 4,039,622 shares owned by Equity and, for
Mr. Zell only, options to purchase 50,000 shares which are
currently exercisable and beneficially owned by Mr. Zell.
(2) Such shares are included in the 4,039,622 shares
beneficially owned by Equity.
(3) Includes shares reported herein by the Lurie Trust
and LFT Partnership.
Page 12 of 25
<PAGE> 13
(b) Equity, the Zell Trust, as sole general partner of Equity, and
Mr. Zell, as the sole trustee of the Zell Trust, share the power to
vote or to direct the vote of and share the power to dispose or to
direct the disposition of the 4,039,622 shares beneficially owned by
Equity. Mr. Zell and the Zell Trust disclaim beneficial ownership
of the 4,039,622 shares beneficially owned by Equity, except for
2,068,733 shares attributable to the Zell Trust, Alphabet
Partnership and ZFT Partnership through such entities ownership in
Equity.
Mr. Zell has the sole power to vote or to direct the vote of
(assuming the exercise of the options to purchase 50,000 shares of
Common Stock) and the sole power to dispose or to direct the
disposition of the options to purchase 50,000 shares of Common Stock
beneficially owned by him.
Arthur A. Greenberg, as the sole trustee of the ten trusts which are
the general partners of Alphabet Partners, has no power to vote or
to direct the vote and no power to dispose or to direct the
disposition of the 4,039,622 shares beneficially owned by Equity or
of the 730,141 shares attributable to Alphabet Partners through its
ownership in Equity.
Sheli Z. Rosenberg, as sole trustee of the fifteen trusts which are
the general partners of ZFT Partnership, has no power to vote or to
direct the vote of and no power to dispose or to direct the
disposition of the 4,039,622 shares beneficially owned by Equity or
of the 730,141 shares attributable to ZFT Partnership through its
ownership in Equity.
Ann Lurie, as the trustee of the Lurie Trust and as the trustee of
the six trusts which are the general partners of LFT partnership,
has no power to vote or to direct the vote of and no power to
dispose or to direct the disposition of the 4,039,622 shares
beneficially owned by Equity or of the 486,760 shares attributable
to each of the Lurie Trust and LFT Partnership through their
ownership in Equity.
(c) The only transactions in Common Stock by the Reporting Persons
was the contribution of shares to Equity previously described in
Item 3. hereto.
(d) and (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer
---------------------------------------------------------------------
On December 19, 1996, Equity entered into the Voting Agreement among
Equity, CCC, Bruce A. Esselborn and Rod F. Dammeyer. Pursuant to the
Voting Agreement, Equity agreed to vote all of its shares of Common
Stock in favor of a merger of the surety business of CCC with and into
the Issuer. The Voting Agreement is attached hereto as Exhibit 3 and
is incorporated herein by reference.
Additionally, in order to secure Equity's obligation to vote its
shares of Common Stock in favor of the above-described merger, Equity
appointed CCC as its true and lawful proxy and attorney in fact and
granted CCC an Irrevocable Proxy for such purpose. The Irrevocable
Proxy is attached hereto as Exhibit 4 and is incorporated herein by
reference.
As previously described in the original Schedule 13D, the following
individuals disclosed in that Schedule 13D's Item 2. hold the
following positions with the Issuer:
(i) Samuel Zell is Chairman of the Board of Directors and
Chief Executive Officer;
(ii) Sheli Z. Rosenberg is Vice President,
Assistant Secretary and a member of the Board of
Directors; and
Page 13 of 25
<PAGE> 14
(iii) Arthur A. Greenberg is Senior Vice President and
Treasurer.
Item 7. Materials to Be Filed as Exhibits
---------------------------------
Exhibit 3 - Voting Agreement among Equity, CCC, Bruce A. Esselborn
and Rod F. Dammeyer.
Exhibit 4 - Irrevocable Proxy of Equity.
Exhibit 5 - Amended and Restated Joint Filing Agreement dated as of
December 18, 1996.
Page 14 of 25
<PAGE> 15
SIGNATURES
After reasonable inquiry, and the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
/s/ Samuel Zell /s/ Ann Lurie
- ---------------------- ------------------------
Samuel Zell Ann Lurie
Samuel Zell Revocable Trust Ann Lurie Revocable Trust
U/T/A 01/17/90 U/T/A 12/22/89
By: /s/ Samuel Zell By: /s/ Ann Lurie
-------------------- -----------------------------
Samuel Zell, Trustee Ann Lurie, Trustee
Alphabet Partners, an Illinois LFT Partnership
general partnership By: Jesse Trust, a general partner
By: SZA Trust, a general partner
By: /s/ Arthur A. Greenberg By: /s/ Ann Lurie
---------------------------- ------------------------------
Arthur A. Greenberg, Trustee Ann Lurie, Trustee
ZFT Partnership, an Illinois Equity Capsure Limited Partnership,
general partnership an Illinois limited partnership
By: Samuel Zell Trust, By: Samuel Zell Revocable Trust
a general partner U/T/A 1/17/90, general partner
By: /s/ Sheli Z. Rosenberg By: /s/ Samuel Zell
----------------------------- ----------------------------------
Sheli Z. Rosenberg, Trustee Samuel Zell, Trustee
Arlington Leasing Co., a Nevada corporation
By: /s/ Samuel Zell
-----------------------------
Samuel Zell, President
DATED: December 26, 1996
Page 15 of 25
<PAGE> 16
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION PAGE
- -------------- --------------------------- ----
1 Amendment Number 7 to *
Schedule 13D for Equity
Holdings.
2 Joint Filing Agreement *
dated September 24, 1996.
3 Voting Agreement among 18
Equity, CCC, Bruce A.
Esselborn and Rod F.
Dammeyer
4 Irrevocable Proxy of Equity 22
5 Amended and Restated Joint 24
Filing Agreement dated
December 18, 1996.
* previously filed.
Page 16 of 25
<PAGE> 17
APPENDIX B
SCHEDULE 13D AND AMENDMENTS THERETO
CUSIP NUMBER 140673104
Information concerning Samuel Zell, Samuel Zell Revocable Trust under
Trust Agreement dated January 17 ,1990, Alphabet Partners, an Illinois general
partnership, Ann Lurie, Ann Lurie Revocable Trust under Trust Agreement dated
December 22, 1989 and LFT Partnership, an Illinois general partnership, was
filed in Appendix A to the original Schedule 13D and is incorporated herein by
reference.
The following information relates to the two new Reporting Persons, Equity
Capsure Limited Partnership, an Illinois limited partnership, and Arlington
Leasing Co., a Nevada corporation.
Equity Capsure Limited Partnership is an Illinois limited partnership
whose sole general partner is the Samuel Zell Revocable Trust under Trust
Agreement dated January 17, 1990. Information concerning the general partner
was contained in Appendix A.
Arlington Leasing Co. is a Nevada corporation. Its directors are: Samuel
Zell, Sheli Z. Rosenberg, Timothy Callahan and Donald J. Liebentritt.
Information concerning Mr. Zell and Mrs. Rosenberg was contained in Appendix A.
Timothy Callahan is Chief Executive Officer of Equity Office Holdings, L.L.C.,
an owner and operator of office buildings. Mr. Callahan is a citizen of the
United States of America. Donald J. Liebentritt is an Executive Vice President
and General Counsel of EGI and a member and Chairman of the Board of Rosenberg
& Liebentritt, P.C. Mr. Liebentritt is a citizen of the United States of
America.
The officers of Arlington Leasing Co. are as follows:
Samuel Zell Chairman of the Board and President
Timothy Callahan Vice President
Arthur A. Greenberg Vice President
Donald J. Liebentritt Vice President
Sheli Z. Rosenberg Vice President
Nancy Kresek Treasurer
Information for all officers, except Nancy Kresak, was contained in
Appendix A or earlier in this Appendix B. Nancy Kresek is Treasurer of EGI and
is a citizen of the United States of America.
Page 17 of 25
<PAGE> 1
Exhibit 3
VOTING AGREEMENT
This Voting Agreement ("Agreement") is made this 19th day of December,
1996 among Equity Capsure Limited Partnership, an Illinois limited partnership
(the "Major Stockholder"), Continental Casualty Company, an Illinois
corporation ("CCC"), Bruce A. Esselborn, an individual residing in the State of
Georgia, Rod F. Dammeyer, an individual residing in the State of Illinois, and
any other signatory set forth on the signature page hereto (collectively, the
"Stockholders").
WHEREAS, the Stockholders each hold shares of the common stock (the
"Stock") of Capsure Holdings Corp., a Delaware corporation (the "Company") or
options to acquire Stock; and
WHEREAS, as a condition to CCC's agreement to merge its surety business
with and into the Company (the "Merger"), as an inducement for CCC to enter
into the Reorganization Agreement, dated as of December 19, 1996 (the
"Reorganization Agreement") among the Company, CCC, CNA Surety Corporation, a
Delaware corporation ("Newco") and Surety Acquisition Company, a Delaware
corporation ("Acquisition"), as an inducement for Acquisition and Newco to
enter into the Reorganization Agreement and as an inducement for Newco to agree
to enter into the Registration Rights Agreement between Newco and the Major
Stockholder in the form attached to the Reorganization Agreement as Annex C,
and to effectuate the Merger, the Stockholders have agreed to enter into this
Agreement, to be specifically enforceable against each of them, pursuant to
which they agree to vote their shares of the Stock in the manner and for the
purpose specified herein.
NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the Stockholders hereby agree as follows:
1. Voting Agreement. Each of the Stockholders hereby agrees to vote all
of the Stock beneficially owned, directly or indirectly, by him or it (and all
Stock issued pursuant to the exercise of stock options) in favor of the Merger
between the Company and Acquisition, as contemplated by the Reorganization
Agreement. Each of the Stockholders hereby agrees that he or it will vote such
shares of Stock against any other competing proposal or offer for a merger,
consolidation, business combination, sale of substantial assets, sale of shares
of capital stock involving a change of control within the meaning of Section
203 of the Delaware General Corporation Law (including, without limitation, by
way of tender offer) or similar transactions involving the Company or any of
its subsidiaries for the duration of this Agreement; provided, however, that
nothing contained herein shall prevent any Stockholder from transferring,
selling or otherwise disposing of Stock held by such Stockholder provided any
such transferee agrees in a written instrument satisfactory to CCC to be bound
by the terms hereof. It is expressly understood and agreed by each of the
Stockholders that this Agreement is intended to, and does hereby, create and
constitute a voting agreement within the meaning of Section 218(c) of the
General Corporation Law of the State of Delaware, as amended, and not a voting
trust agreement under Section 218(a) thereof.
2. Irrevocable Proxy. In order to secure each Stockholder's obligation to
vote his or its Stock and other voting securities of the Company in accordance
with the provisions of Section 1, each Stockholder (other than CCC) hereby
appoints CCC (the "Proxy") as its true and lawful proxy and
Page 18 of 25
<PAGE> 2
attorney-in-fact, with full power of substitution, to vote all of his or
its Stock and other voting securities of the Company as expressly provided for
in Section 1. The Proxy may exercise the irrevocable proxy granted to it
hereunder at any time any party fails to comply with the provisions of this
Agreement. The proxies and powers granted by each Stockholder pursuant to this
Section 2 are coupled with an interest and are given to secure the performance
of the Stockholder's obligations under this Agreement. Such proxies and powers
will be irrevocable with respect to the matters set forth in Section 1 for the
term set forth in Section 5, and, with respect to any individual, will survive
the death, incompetency and disability of such Stockholder.
3. Representations of Stockholders. Each Stockholder hereby represents
and warrants to each of the other Stockholders that (a) he or it owns and has
the right to vote the number of shares of the Stock set forth opposite his name
on Exhibit A attached hereto, (b) he or it has full power to enter into this
Agreement, and (c) he or it is not a party to any proxy, voting trust or other
agreement which is inconsistent with or conflicts with the provisions of this
Agreement, and no Stockholder will grant any proxy or become party to any
voting trust or other agreement which is inconsistent with or conflicts with
the provisions of this Agreement. All representations and warranties contained
herein or made in writing by any party in connection herewith will survive the
execution and delivery of this Agreement, regardless of any investigation made
by any party.
4. Specific Performance. The parties hereto agree that irreparable damage
would occur in the event any provision of this Agreement was not performed in
accordance with the terms hereof and that the parties shall be entitled to
specific performance of the terms hereof, in addition to any other remedy at
law or in equity.
5. Term. This Agreement shall remain in effect until the earlier of (i)
December 31, 1997; (ii) the date on which the Reorganization Agreement is
terminated pursuant to Sections 8.1.1, 8.1.2 (as may be amended from time to
time by the parties thereto and provided such termination does not result from
a breach by the Company of the Reorganization Agreement), 8.1.3 (other than due
to an order, decree, ruling or other action resulting from an action or
proceeding instituted by any of the parties hereto or to the Reorganization
Agreement or any affiliates of such parties), 8.1.5 or 8.1.7 (provided no
Stockholder is in breach of this Agreement) of the Reorganization Agreement.
6. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT, AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.
7. General Provisions.
(a) All of the covenants and agreements contained in this Agreement shall
be binding upon, and inure to the benefit of, the respective parties and their
successors, assigns, heirs, executors, administrators and other legal
representatives, as the case may be. Nothing contained herein shall prevent any
of the parties hereto from assigning their rights hereunder.
(b) This Agreement may be executed in two or more counterparts, each of
which will be deemed an original but all of which together shall constitute one
and the same instrument. The parties
Page 19 of 25
<PAGE> 3
hereto agree that facsimile transmissions of original signatures shall
constitute and be accepted as original signatures.
(c) If any provision of this Agreement shall be declared void or
unenforceable by any court or administrative board of competent jurisdiction,
such provision shall be deemed to have been severed from the remainder of this
Agreement and this Agreement shall continue in all respects to be valid and
enforceable.
(d) No waiver of any breach of this Agreement extended by any party hereto
to any other party shall be construed as a waiver of any rights or remedies of
any other party hereto or with respect to any subsequent breach.
(e) Whenever the context of this Agreement shall so require, the use of
the singular number shall include the plural and the use of any gender shall
include all genders.
(f) This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware, without regard to principles of conflicts of
law; however, any action or proceeding relating to this Agreement shall be
brought only in and decided by the federal or state courts in Chicago,
Illinois, such courts being a proper forum in which to adjudicate such action
or proceeding, and each party hereby waives any claim of inconvenient forum.
(g) The language used in this Agreement shall be deemed to be the language
chosen by the parties to express their mutual intent and no rule of strict
construction will be applied against any party.
Page 20 of 25
<PAGE> 4
IN WITNESS WHEREOF, each of the Stockholders has executed this Agreement
as of the date first written above.
EQUITY CAPSURE LIMITED PARTNERSHIP
By:
--------------------------------
Name:
------------------------------
Its:
-------------------------------
CONTINENTAL CASUALTY COMPANY
By:
---------------------------------
Name:
-------------------------------
Its:
-------------------------------
------------------------------------
Bruce A. Esselborn
------------------------------------
Rod F. Dammeyer
Page 21 of 25
<PAGE> 1
Exhibit 4
IRREVOCABLE PROXY
The undersigned agrees to, and hereby grants to Continental Casualty
Company, an Illinois corporation ("CCC") an irrevocable proxy pursuant to the
provisions of Section 212 of the Delaware General Corporation Law to vote all
shares of common stock (the "Stock") of Capsure Holdings Corporation, a
Delaware corporation, (the "Company") owned by the undersigned only in
connection with the matters and in accordance with Section 1 of the Voting
Agreement (the "Voting Agreement") dated as of December 19, 1996, among CCC,
the undersigned, Bruce A. Esselborn and Rod F. Dammeyer. The undersigned
hereby affirms that this proxy is coupled with an interest and is irrevocable.
It is further understood by the undersigned that this proxy may be exercised by
CCC for an amount of time equal to the term of the Voting Agreement set forth
in Section 5 thereto.
THIS PROXY SHALL REMAIN IN FULL FORCE AND EFFECT AND BE ENFORCEABLE
AGAINST ANY DONEE, TRANSFEREE OR ASSIGNEE OF THE STOCK.
Dated this ____ day of December, 1996.
EQUITY CAPSURE LIMITED
PARTNERSHIP
___________________________________
By:________________________________
Its:_______________________________
Page 22 of 25
<PAGE> 2
EXHIBIT A
Equity Capsure Limited Partnership 4,039,622 shares
Continental Casualty Company 10 shares
Bruce A. Esselborn 74,907 shares
Rod F. Dammeyer Options to acquire 20,000 shares
Pagee 23 of 25
<PAGE> 1
Exhibit 5
AMENDED AND RESTATED JOINT FILING AGREEMENT
AGREEMENT dated as of December 18, 1996 among Samuel Zell; Samuel Zell as
Trustee of the Samuel Zell Revocable Trust under trust agreement dated January
17, 1990; Alphabet Partners, an Illinois general partnership; ZFT Partnership,
an Illinois general partnership; Ann Lurie; Ann Lurie as Trustee of the Ann
Lurie Revocable Trust under trust agreement dated December 22, 1989; LFT
Partnership, an Illinois general partnership; Equity Capsure Limited
Partnership, an Illinois limited partnership; and Arlington Leasing Co., a
Nevada corporation (collectively the "Reporting Persons").
WHEREAS, the Reporting Persons beneficially own shares of Common Stock,
par value $.05 per share, of Capsure Holdings Corp., a Delaware Corporation.
WHEREAS, the parties hereto may be deemed to constitute a "group" for
purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended
(the "Act"); and
WHEREAS, each of the parties hereto desire by this Agreement to provide
for the joint filing of a Schedule 13D, and all amendments thereto, with the
Securities and Exchange Commission.
NOW, THEREFORE, the parties hereto agree as follows:
1. The parties hereto will join in the preparation and filing of a single
statement containing the information required by Schedule 13D, and all
amendments thereto, and the Schedule 13D and all such amendments will
be filed on behalf of each party hereto;
2. Each party hereto will be responsible for the timely filing of the
Schedule 13D, and all amendments thereto, and for the completeness
and accuracy of the information concerning such party contained
therein. No party hereto will be responsible for the completeness
or accuracy of the information concerning any other party
contained in the Schedule 13D or any amendment thereto, except to the
extent such party knows or has reason to believe that such information
in inaccurate.
3. Susan Obuchowski will be designated as the person authorized to
receive notices and communications with respect to the Schedule 13D
and all amendments thereto.
4. This Agreement may be executed in counterparts, all of which when
taken together will constitute one and the same instrument.
Page 24 of 25
<PAGE> 2
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first above written.
/s/ Samuel Zell /s/ Ann Lurie
- ------------------------------ ---------------------------
Samuel Zell Ann Lurie
Samuel Zell Revocable Trust Ann Lurie Revocable Trust
U/T/A 01/17/90 U/T/A 12/22/89
By: /s/ Samuel Zell By: /s/ Ann Lurie
-------------------------- ------------------------
Samuel Zell, Trustee Ann Lurie, Trustee
Alphabet Partners, an Illinois LFT Partnership
general partnership By: Jesse Trust, a general partner
By: SZA Trust, a general partner
By: /s/ Arthur A. Greenberg By: /s/ Ann Lurie
---------------------------- -------------------------
Arthur A. Greenberg, Trustee Ann Lurie, Trustee
ZFT Partnership, an Illinois Equity Capsure Limited Partnership
general partnership By: Samuel Zell Revocable Trust
By: Samuel Zell Trust, a general partner U/T/A 1/17/90
By: /s/ Sheli Z. Rosenberg By: /s/ Samuel Zell
------------------------- ---------------------------
Sheli Z. Rosenberg, Trustee Samuel Zell, President
Arlington Leasing Co.,
a Nevada corporation
By: /s/ Samuel Zell
-----------------------------
Samuel Zell, President
Page 25 of 25
