<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2 )*
Capsure Holdings Corp.
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(NAME OF ISSUER)
Common Stock, par value $.05 per value
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(TITLE OF CLASS OF SECURITIES)
140673104
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(CUSIP NUMBER)
Susan Obuchowski
Two N. Riverside Plaza, Suite 600, Chicago, IL 60606 (312) 466-4010
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(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED TO RECEIVE NOTICES AND
COMMUNICATIONS)
May 23, 1997
- -------------------------------------------------------------------------------
(DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [ ]. (A
fee is not required only if the reporting person: (1) has a previous statement
on file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7).
NOTE: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
*The remainder of this cover page shall be filled 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).
Page 1 of 21
<PAGE> 2
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CUSIP No. 140673104 13D Page 2 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
Samuel Zell
###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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7 SOLE VOTING POWER
NUMBER OF
SHARES 55,000
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
3,552,862
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
55,000
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,552,862
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,607,862
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.7%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 3
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CUSIP No. 140673104 13D Page 3 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
Samuel Zell Revocable Trust U/T/A 01/17/90
###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
3,552,862
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,552,862
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,552,862
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22,4%
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14 TYPE OF REPORTING PERSON*
00
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 4
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CUSIP No. 140673104 13D Page 4 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
Alphabet Partners, an Illinois general partnership
36-3002855
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
730,141
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 5
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CUSIP No. 140673104 13D Page 5 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
ZFT Partnership, an Illinois general partnership
36-3022976
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
730,141
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 6
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CUSIP No. 140673104 13D Page 6 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
Ann Lurie
###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
486,760
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
486,760
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
486,760
- -------------------------------------------------------------------------------
12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.1%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 7
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CUSIP No. 140673104 13D Page 7 of 21
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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
###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- -------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
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14 TYPE OF REPORTING PERSON*
00
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 8
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CUSIP No. 140673104 13D Page 8 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
LFT Partnership, an Illinois general partnership
36-6527526
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
486,760
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.1%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 9
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CUSIP No. 140673104 13D Page 9 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
Ann and Robert H. Lurie Family Foundation
36-3486274
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
486,760
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
486,760
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
486,760
- -------------------------------------------------------------------------------
12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.1%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 10
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CUSIP No. 140673104 13D Page 10 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
Equity Capsure Limited Partnership, an Illinois limited
partnership
36-4122677
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
PERSON WITH
3,552,862
---------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
---------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,552,862
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,552,862
- -------------------------------------------------------------------------------
12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.4%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 11
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CUSIP No. 140673104 13D Page 11 of 21
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1 NAME OF REPORTING PERSON S.S. or I.R.S. IDENTIFICATION NO. OF
ABOVE PERSON
Arlington Leasing Co.
88-0132727
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY ---------------------------------------------------------------
EACH REPORTING 8 SHARED VOTING POWER
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 AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.3%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE> 12
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 AND AMENDMENTS THERETO.
Item 2. Identity and Background
-----------------------
(a) - (c) This Item is being amended to add the Ann and Robert H.
Lurie Family Foundation ("Lurie Foundation") as a Reporting Person.
The Lurie Foundation is an Illinois non-stock not-for-profit
corporation whose address is Two N. Riverside Plaza, Suite 600,
Chicago, IL 60606. The directors of the Lurie Foundation are: Ann
Lurie; Sheli Z. Rosenberg; Samuel Zell; Mark Slezak; and Andrew
Lurie. The officers of the Lurie Foundation are: Mrs. Lurie,
president and treasurer; Mrs. Rosenberg, vice president and
secretary; Mr. Slezak and Mr. Lurie, vice presidents. Information
concerning Mrs. Lurie, Mrs. Rosenberg and Mr. Zell was included in
the original Schedule 13D. Mr. Slezak is a Vice President and
Treasurer of Lurie Investments, Inc., an Illinois corporation, and
Mr. Lurie is a student. Both are citizens of the United States of
America with addresses of Two North Riverside Plaza, Chicago, IL
60606.
(d) and (e) Neither Messrs. Lurie or Slezak 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 May 23, 1997, Equity distributed 486,760 shares of Common Stock to
one of its partners, the Lurie Trust. The Lurie Trust then
distributed the 486,760 shares of Common Stock to its beneficiary,
Mrs. Lurie. Mrs. Lurie then contributed the shares to the Lurie
Foundation.
No funds were expended by Mrs. Lurie or the Lurie Foundation for the
contribution of the shares to the Lurie Foundation.
Item 5. Interest in Securities of the Issuer
------------------------------------
(a) To the best knowledge of the Reporting Persons, there are
15,849,308 shares of Common Stock issued and 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:
Page 12 of 21
<PAGE> 13
<TABLE>
<CAPTION>
REPORTING PERSON NUMBER OF SHARES PERCENTAGE OF OUTSTANDING
----------------- ---------------- -------------------------
<S> <C> <C>
Samuel Zell 3,607,862(1) 22.7%(1)
Zell Trust 3,552,862(1) 22.4%(1)
Alphabet Partners 730,141(2) 4.6%(2)
ZFT Partnership 730,141(2) 4.6%(2)
Ann Lurie 486,760(2)(3) 3.1%(2)(3)
LFT Partnership 486,760(2) 3.1%(2)
Lurie Foundation 486,760 3.1%
Equity 3,552,862 22.4%
Arlington 997,369(2) 6.3%(2)
</TABLE>
(1) Includes 3,552,862 shares owned by the Equity and,
for Mr. Zell only, options to purchase 55,000 shares which are
currently exercisable and beneficially owned by Mr. Zell.
(2) Such shares are included in the 3,552,862 shares
beneficially owned by Equity.
(3) Includes shares reported herein by LFT Partnership.
Arthur A. Greenberg is the sole trustee of the three trusts which
are the general partners of Alphabet Partners. Mr. Greenberg
beneficially owns 27,250 shares of Common Stock and options to
purchase 1,250 shares of Common Stock which will become exercisable
within 60 days. Additionally, a trust in which Mr. Greenberg is the
beneficiary beneficially owns 2,000 shares of Common Stock. Mr.
Greenberg disclaims beneficial ownership of the shares of Common
Stock beneficially owned by such trust.
Sheli Z. Rosenberg is the sole trustee of the fifteen trusts which
are the general partners of ZFT Partnership. Mrs. Rosenberg
beneficially owns 26,318 shares of Common Stock and options to
purchase 20,000 shares of Common Stock which are currently
exercisable. Additionally, the Rosenberg Family Foundation is the
beneficial owner of 16,388 shares of Common Stock. Mrs. Rosenberg
may be deemed to be the beneficial owner of the shares of Common
Stock beneficially owned by the foundation but she disclaims
beneficial ownership of such shares.
(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 3,552,862 shares beneficially owned by
Equity. Mr. Zell and the Zell Trust disclaim beneficial ownership
of the 3,552,862 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.
Page 13 of 21
<PAGE> 14
Mr. Zell has the sole power to vote or to direct the vote of
(assuming the exercise of the options to purchase 55,000 shares of
Common Stock) and the sole power to dispose or to direct the
disposition of the options to purchase 55,000 shares of Common Stock
beneficially owned by him.
Arthur A. Greenberg, as the sole trustee of the three 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 3,552,862 shares beneficially owned by Equity or
of the 730,141 shares attributable to Alphabet Partners through its
ownership in Equity. Mr. Greenberg disclaims beneficial ownership
of the shares owned by Alphabet Partners and Equity. Mr. Greenberg
has the sole power to vote or to direct the vote and the sole power
to dispose or to direct the disposition of the 27,250 shares and of
the 1,250 shares (assuming the exercise of the options to purchase
1,250 shares) beneficially owned by him and no power to vote or to
direct the vote and no power to dispose or to direct the disposition
of the 2,000 shares beneficially owned by the trust in which Mr.
Greenberg is the beneficiary.
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 3,552,862 shares beneficially owned by Equity or
of the 730,141 shares attributable to ZFT Partnership through its
ownership in Equity. Mrs. Rosenberg disclaims beneficial ownership
of the shares owned by ZFT Partnership and Equity. Mrs. Rosenberg
has the sole power to vote or to direct the vote and the sole power
to dispose or to direct the disposition of the 26,318 shares and of
the 20,000 shares (assuming the exercise of the options to purchase
20,000 shares) and shares the power to vote or to direct the vote
and shares the power to dispose or to direct the disposition of the
16,388 shares beneficially owned by the Rosenberg Family Foundation.
Ann Lurie, 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
3,552,862 shares beneficially owned by Equity or of the 486,760
shares attributable to LFT Partnership through its ownership in
Equity. Mrs. Lurie disclaims beneficial ownership of the shares
beneficially owned by LFT Partnership. Andrew Lurie is the
beneficiary of one of the six trusts which are partners of LFT
Partnership. Mr. Lurie has no power to vote or to direct the vote
and no power to dispose or to direct the disposition of the
3,552,862 shares beneficially owned by Equity or of the 486,760
shares attributable to LFT Partnership through its ownership in
Equity.
The Lurie Foundation, Ann Lurie, Sheli Z. Rosenberg, Samuel Zell,
Mark Slezak and Andrew Lurie (as directors of the Lurie Foundation)
share the power to vote and to direct the vote and share the power
to dispose and to direct the disposition of the 486,760 shares
beneficially owned by the Lurie Foundation. Messrs. Zell, Slezak
and Lurie and Mmes Lurie and Rosenberg disclaim beneficial ownership
of the 486,760 shares beneficially owned by the Lurie Foundation.
(c) The only transactions in Common Stock by the Reporting Persons
were the transactions previously described in Item 3. hereto.
On May 7, 1997, Sheli Z. Rosenberg exercised options to purchase
20,000 shares of Common Stock at $.05 per share from her personal
funds. On May 9, 1997, Mrs. Rosenberg contributed 16,388 shares of
Common Stock to the Rosenberg Family Foundation.
(d) and (e) Not applicable.
Page 14 of 21
<PAGE> 15
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer
---------------------------
On May 23, 1997, the Lurie Foundation agreed to be bound by the
Voting Agreement among Equity, CCC, Bruce A. Esselborn and Rod F.
Dammeyer wherein the Lurie Foundation agreed to vote all of its
shares of Common Stock in favor of the merger of the surety business
of CCC with and into the Issuer. The letter is attached hereto as
Exhibit 6 and is incorporated herein by reference.
Additionally, in order to secure the Lurie Foundation's obligation
to vote its shares of Common Stock in favor of the above-described
merger, the Lurie Foundation appointed CCC as its true and lawful
proxy and attorney-in-fact and granted CCC an Irrevocable Proxy (the
"Lurie Irrevocable Proxy") for such purposes. The Lurie Irrevocable
Proxy is attached hereto as Exhibit 7 and is incorporated herein by
reference.
Item 7. Materials to Be Filed as Exhibits
---------------------------------
Exhibit 6 - Letter from the Lurie Foundation to CCC dated May 23,
1997.
Exhibit 7 - Irrevocable Proxy of the Lurie Foundation.
Exhibit 8 - Second Amended and Restated Joint Filing Agreement
dated as of May 23, 1997.
Page 15 of 21
<PAGE> 16
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 LFT Partnership
U/T/A 01/17/90 By: Jesse Trust, a general partner
By: /s/ Samuel Zell By: /s/ Ann Lurie
--------------------------- ----------------------------
Samuel Zell, Trustee Ann Lurie, Trustee
Alphabet Partners, an Illinois Ann and Robert H. Lurie Family Foundation
general partnership
By: SZA Trust, a general partner
By: /s/ Arthur A. Greenberg By: /s/ Ann Lurie
--------------------------- ---------------------------
Arthur A. Greenberg, Trustee Ann Lurie, President
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: May _____, 1997
Page 16 of 21
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NUMBER DESCRIPTION PAGE
-------------- ----------- ----
<S> <C> <C>
1 Amendment Number 7 to Schedule 13D for *
Equity Holdings.
2 Joint Filing Agreement dated September *
24, 1996.
3 Voting Agreement among Equity, CCC, Bruce *
A. Esselborn and Rod F. Dammeyer.
4 Irrevocable Proxy of Equity. *
5 Amended and Restated Joint Filing *
Agreement dated December 19, 1996.
6 Letter from the Lurie Foundation to CCC 18
dated May 23, 1997.
7 Irrevocable Proxy of the Lurie Foundation. 19
8 Second Amended and Restated Joint Filing 20
Agreement dated May 23, 1997.
</TABLE>
* previously filed.
Page 17 of 21
<PAGE> 1
Exhibit 6
THE ANN AND ROBERT H. LURIE FAMILY FOUNDATION
May 23, 1997
Continental Casualty Company
CNA Plaza
Chicago, Illinois 60685
Ladies and Gentlemen:
This letter is being issued in connection with that certain Voting
Agreement, dated December 19, 1996 (the "Voting Agreement"), among Continental
Casualty Company ("CCC"), Equity Capsure Limited Partnership ("Major
Stockholder"), Bruce A. Esselborn, and Rod F. Dammeyer. Major Stockholder has
transferred and distributed, on behalf of one of its limited partners, an
aggregate of 486,760 shares of Capsure Holdings Corp. common stock to the Ann
and Robert H. Lurie Family Foundation (the "Foundation"). In accordance with
Section 1 of the Voting Agreement, the Foundation hereby agrees to be bound by
the terms and conditions of the Voting Agreement as if it was a party to, and
had executed, the Voting Agreement and hereby makes the representations and
warranties set forth in Section 3 thereof. The Foundation further agrees to
grant an irrevocable proxy to CCC in the form attached hereto as Exhibit A and
is delivering such irrevocable proxy to CCC together with this letter.
THE ANN AND ROBERT H. LURIE FAMILY
FOUNDATION
By: Mark Slezak
-------------------------------
Its: Vice President
AGREED AND ACCEPTED
as of this 23rd day of May, 1997
CONTINENTAL CASUALTY
COMPANY
By:
-----------------------------
Its:
-----------------------------
Page 18 of 21
<PAGE> 1
Exhibit 7
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 Corp., 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 December 19, 1996, among CCC, Equity Capsure Limited
Partnership, 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 23rd day of May, 1997.
THE ANN AND ROBERT H. LURIE
FAMILY FOUNDATION
----------------------------
By: Mark Slezak
-----------------------
Its: Vice President
-----------------------
Page 19 of 21
<PAGE> 1
Exhibit 8
SECOND AMENDED AND RESTATED JOINT FILING AGREEMENT
AGREEMENT dated as of May 23, 1997 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; Robert H. and Ann Lurie Family
Foundation; 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 20 of 21
<PAGE> 2
/s/ Samuel Zell /s/ Ann Lurie
- -------------------------------- --------------------------------
Samuel Zell Ann Lurie
Samuel Zell Revocable Trust LFT Partnership
U/T/A 01/17/90 By: Jesse Trust, a general partner
By: /s/ Samuel Zell By: /s/ Ann Lurie
--------------------------- ----------------------------
Samuel Zell, Trustee Ann Lurie, Trustee
Alphabet Partners, an Illinois Ann and Robert H. Lurie
general partnership Famiy Foundation
By: SZA Trust, a general partner
By: /s/ Arthur A. Greenberg By: /s/ Ann Lurie
--------------------------- -----------------------------
Arthur A. Greenberg, Trustee Ann Lurie, President
ZFT Partnership, an Illinois Equity Capsure Limited Partnership,
general partnership an Illinois limited partnership
By: Samuel Zell Trust, a general partner By: Samuel Zell Revocable Trust
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
Page 21 of 21
