<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 11-K
--------------------
(MARK ONE)
/X/ ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended February 28, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
------ ------
Commission File No. 0-14749
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
401(K) PLAN
(FULL TITLE OF PLAN AND ADDRESS OF PLAN IF DIFFERENT
FROM THAT OF ISSUER NAMED BELOW)
--------------------
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
265 Turner Drive
Durango, Colorado 81301
(NAME OF ISSUER OF SECURITIES HELD PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE)
<PAGE>
REQUIRED INFORMATION
The report filed as Exhibit 1 hereto (the "Plan Information") is
incorporated by reference herein in satisfaction of the financial statement
requirements of Form 11-K pursuant to Item 4 of Form 11-K. The Plan
Information has been prepared in accordance with the financial reporting
requirements of ERISA. ERISA (without regard to the limited scope exemption
contained in Section 103(a)(3)(C) thereof) does not require the Plan
Information to be examined by an independent accountant.
EXHIBITS
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<CAPTION>
Exhibit
Number Description
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<S> <C>
1 Return/Report of the Plan on Form 5500 for the
year ended February 28, 1998
2 Form of Rocky Mountain Chocolate Factory, Inc.
401(k) Plan (incorporated by reference to Exhibit 4.1
to the Company's Registration Statement on Form S-8
(Registration No. 33-79342) filed on May 25, 1994).
</TABLE>
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrator of the Rocky Mountain Chocolate Factory, Inc. 401(k) Plan has
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
401(K) PLAN
BY: Rocky Mountain Chocolate Factory, Inc.,
Plan Administrator
Date: August 31, 1998 By: /s/ Bryan J. Merryman
--- --------------------------------------------
Bryan J. Merryman, Vice President-Finance
3
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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description
- -------- -----------
<S> <C>
1 Return/Report of the Plan on Form 5500 for the
year ended February 28, 1998
2 Form of Rocky Mountain Chocolate Factory, Inc.
401(k) Plan (incorporated by reference to Exhibit 4.1
to the Company's Registration Statement on Form S-8
(Registration No. 33-79342) filed on May 25, 1994).
</TABLE>
4
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<TABLE>
<S><C>
Form 5500 ANNUAL RETURN/REPORT OF EMPLOYEE BENEFIT PLAN OMB Nos. 1210-0016
1210-0089
Department of the Treasury (WITH 100 OR MORE PARTICIPANTS) -------------------
Internal Revenue Service THIS FORM IS REQUIRED TO BE FILED UNDER SECTIONS 1997
___________ 104 AND 4065 OF THE EMPLOYEE RETIREMENT INCOME --------------------
SECURITY ACT OF 1974 AND SECTIONS 6039D, 6047(e),
Department of Labor 6057(b), AND 6058(a) OF THE INTERNAL REVENUE CODE, THIS FORM IS OPEN TO
Pension and Welfare Benefits REFERRED TO AS THE CODE. PUBLIC INSPECTION
Administration --------------------
___________
Pension Benefit SEE SEPARATE INSTRUCTIONS.
Guaranty Corporation
- ---------------------------------------------------------------------------------------------------------------------
FOR THE CALENDAR PLAN YEAR 1997 OR FISCAL PLAN YEAR BEGINNING MARCH 1, 1997, AND ENDING FEBRUARY 28, 1998
- ---------------------------------------------------------------------------------------------------------------------
If A(1) through A(4), B, C, and/or D, do not apply to this year's FOR IRS USE ONLY
return/report, leave the boxes unmarked. EP-ID
A This return/report is: (1)/ / the first return/report filed for the plan; (3)/ / the final return/report filed for the plan; or
(2)/ / an amended return/report; (4)/ / a short plan year return/report (less than
12 months).
IF ANY INFORMATION ON A PREPRINTED PAGE 1 IS INCORRECT, CORRECT IT. IF ANY INFORMATION IS MISSING, ADD IT. PLEASE USE RED INK
WHEN MAKING THESE CHANGES AND INCLUDE THE PREPRINTED PAGE 1 WITH YOUR COMPLETED RETURN/REPORT.
B Check here if any information reported in 1a, 2a, 2b, or 5a changed since the last return/report for this plan......... / /
C If your plan year changed since the last return/report, check here..................................................... / /
D If you filed for an extension of time to file this return/report, check here and attach a copy of
the approved extension............................................................................................... /X/
- -------------------------------------------------------------------------------------------------------------------------
1a Name and address of plan sponsor (employer, if for a single-employer plan) 1b Employer identification number (EIN)
(Address should include room or suite no.) 84 0910696
--------------------------------------------
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. 1c Sponsor's telephone number
265 TURNER DRIVE (303) 247-4943
DURANGO, CO 81301-7941 ---------------------------------------------
1d Business code (see instructions, page 20)
2060
---------------------------------------------
1e CUSIP issuer number
N/A
- ----------------------------------------------------------------------------------------------------------------------------------
2a Name and address of plan administrator (if same as plan sponsor, enter "Same") 2b Administrator's EIN
SAME
---------------------------------------------
2c Administrator's telephone number
- ----------------------------------------------------------------------------------------------------------------------------------
3 If you are filing this page without the preprinted historical plan information and the name, address, and EIN of the plan
sponsor or plan administrator has changed since the last return/report filed for this plan, enter the information from the last
return/report in line 3a and/or line 3b and complete line 3c.
a Sponsor ________________________________________________________________________ EIN _______________ Plan number ____________
b Administrator __________________________________________________________________ EIN ________________________________________
c If line 3a indicates a change in the sponsor's name, address, and EIN, is this a change in sponsorship only? (See line 3c on
page 8 of the instructions for the definition of sponsorship.) Enter
"Yes" or No."
- ----------------------------------------------------------------------------------------------------------------------------------
4 ENTITY CODE. (If not shown, enter the applicable code from page 8 of the instructions.) A
- ----------------------------------------------------------------------------------------------------------------------------------
5a Name of plan ROCKY MOUNTAIN CHOCOLATE 5b Effective date of plan (mo., day, yr.)
---------------------------------------------------------------- June 1, 1994
FACTORY, INC. 401(K) PLAN
- ------------------------------------------------------------------------------------- -------------------------------------------
5c Three-digit
- -------------------------------------------------------------------------------------
ALL FILERS MUST COMPLETE 6a THROUGH 6d, AS APPLICABLE plan number 0 0 1
6a / / Welfare benefit plan 6b / X / Pension benefit plan --------------------------------------------
(If the correct codes are not preprinted below, enter the applicable ) 2
codes from page 8 of the instructions in the boxes.) ) --------------------------------------------
--------------------------------------------
6c Pension plan features. (If the correct codes are not preprinted below,
enter the applicable pension plan feature codes from page 8 of the --------------------------------------------
instructions in the boxes.) C G
--------------------------------------------
6d / / Fringe benefit plan. Attach Schedule F (Form 5500). See instructions.
- ----------------------------------------------------------------------------------------------------------------------------------
Caution: A PENALTY FOR THE LATE OR INCOMPLETE FILING OF THIS RETURN/REPORT WILL BE ASSESSED UNLESS REASONABLE CAUSE IS
ESTABLISHED
- ----------------------------------------------------------------------------------------------------------------------------------
Under penalties of perjury and other penalties set forth in the instructions, I declare that I have examined this
return/report, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,
and complete.
Signature of employer/plan sponsor _______________________________________________________ Date ________________________________
Type or print name of individual signing above ___________________________________________________________________________________
Signature of plan administrator ___________________________________________________________ Date ________________________________
Type or print name of individual signing above
__________________________________________________________________________________________________________________________________
FOR PAPERWORK REDUCTION ACT NOTICE, SEE THE INSTRUCTIONS FOR FORM 5500. Cat. No. 13500F Form 5500 (1997)
</TABLE>
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<TABLE>
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Form 5500 (1997) Page 2
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6e Check all applicable investment arrangements below (see instructions on page 9):
(1) / / Master trust (2) / / 103-12 investment entity
(3) / / Common/collective trust (4) /X/ Pooled separate account
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f Single-employer plans enter the tax year end of the employer in which this plan year ends Month 2 Day 28 Year 98
g Is any part of this plan funded by an insurance contract described in Code section 412(i)?...................... / / YES /X/ NO
h If line 6g is "Yes," was the part subject to the minimum funding standards for either of the prior 2 plan years? / / YES / / NO
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7 Number of participants as of the end of the plan year (welfare plans complete only lines 7a(4), 7b, 7c, and 7d):
a Active participants: (1) Number fully vested ................................ a(1) 44
-------------------------------
(2) Number partially vested ............................ a(2) 58
-------------------------------
(3) Number nonvested ................................... a(3) 10
-------------------------------
(4) Total ......................................................................... a(4) 112
--------------------
b Retired or separated participants receiving benefits ..................................................... b 0
--------------------
c Retired or separated participants entitled to future benefits ............................................ c 0
--------------------
d Subtotal. Add lines 7a(4), 7b, and 7c .................................................................... d 112
--------------------
e Deceased participants whose beneficiaries are receiving or are entitled to receive benefits .............. e 0
--------------------
f Total. Add lines 7d and 7e ............................................................................... f 112
--------------------
g Number of participants with account balances. (Defined benefit plans do not complete this line item.)..... g 89
--------------------
h Number of participants that terminated employment during the plan year with accrued benefits that were
less than 100% vested .................................................................................... h 4
--------------------
YES NO
i (1) Was any participant(s) separated from service with a deferred vested benefit for which a Schedule SSA --------------------
(Form 5500) is required to be attached? (See instructions.) ................................................ i(1) X
(2) If "Yes," enter the number of separated participants required to be reported
- ------------------------------------------------------------------------------------------------------------------------------------
8a Was this plan ever amended since its effective date? If "Yes," complete line 8b ................................ 8a X
If the amendment was adopted in this plan year, complete lines 8c through 8e. --------------
b If line 8a is "Yes," enter the date the most recent amendment was adopted Month 05 Day 27 Year 94
c Did any amendment during the current plan year result in the retroactive reduction of accrued benefits
for any participants? .......................................................................................... c
--------------
d During this plan year did any amendment change the information contained in the latest summary plan
descriptions or summary description of modifications available at the time of amendment? ....................... d
--------------
e If line 8d is "Yes," has a summary plan description or summary description of modifications that reflects the
plan amendments referred to on line 8d been both furnished to participants? (see instructions) ................. e
- ------------------------------------------------------------------------------------------------------------------------------------
9a Was this plan terminated during this plan year or any prior plan year? If "Yes," enter the year _____________ 9a X
--------------
b Were all the plan assets either distributed to participants or beneficiaries, transferred to another plan, or
brought under the control of PBGC? ............................................................................. b X
--------------
c Was a resolution to terminate this plan adopted during this plan year or any prior plan year? .................. c X
--------------
d If line 9a or line 9c is "Yes," have you received a favorable determination letter from the IRS for
the termination? ............................................................................................... d
--------------
e If line 9d is "No," has a determination letter been requested from the IRS? .................................... e
--------------
f If line 9a or line 9c is "Yes," have participants and beneficiaries been notified of the termination or
the proposed termination? ...................................................................................... f
--------------
g If line 9a is "Yes" and the plan is covered by PBGC, is the plan continuing to file a PBGC Form 1 and pay
premiums until the end of the plan year in which assets are distributed or brought under the control of PBGC? .. g
--------------
h During this plan year, did any trust assets revert to the employer for which the Code section 4980 excise
tax is due? .................................................................................................... h X
--------------
i If line 9h is "Yes," enter the amount of tax paid with Form 5330 $
- ------------------------------------------------------------------------------------------------------------------------------------
10a In this plan year, was this plan merged or consolidated into another plan(s), or were assets or
liabilities transferred to another plan(s)? If "Yes," complete lines 10b through 10e ....................... / / YES /X/ NO
If "Yes," identify the other plan(s) c Employer identification number(s) d Plan number(s)
b Name of plan(s)
-----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
e If required, has a Form 5310-A been filed? ................................................................. / / YES / / NO
- ------------------------------------------------------------------------------------------------------------------------------------
11 Enter the plan funding arrangement code from page 10 of the 12 Enter the plan benefit arrangement code from page 10 of
instructions.................... 2 the instructions 2
- ------------------------------------------------------------------------------------------------------------------------------------
YES NO
13a Is this a plan established or maintained pursuant to one or more collective bargaining agreements? ............. 13a X
b If line 13a is "Yes," enter the appropriate six-digit LM number(s) of the sponsoring labor organization(s)(see instructions):
(1) (2) (3)
- ------------------------------------------------------------------------------------------------------------------------------------
14 If any benefits are provided by an insurance company, insurance service, or similar organization, enter
the number of SCHEDULES A (FORM 5500), Insurance Information, attached. If none, enter "-0-." 1
</TABLE>
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<TABLE>
<CAPTION>
Form 5500 (1997) Page 3
<S> <C>
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WELFARE PLANS DO NOT COMPLETE LINES 15 THROUGH 24. GO TO LINE 25 ON PAGE 4
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15 a If this is a defined benefit plan subject to the minimum funding standards for this plan year, is SCHEDULE B YES NO
-----------
(Form 5500) required to be attached? (if this is a defined contribution plan leave blank.).................. 15a
-----------
b If this is a defined contribution plan (i.e., money purchase or target benefit), is it subject to the
minimum funding standards? (If a waiver was granted, see instructions.)(If this is a defined benefit plan,
leave blank.)............................................................................................... b X
-----------
If "Yes," complete (1),(2), and (3) below:
(1) Amount of employer contribution required for the plan year under Code section 412 b(1) $
--------------------
(2) Amount of contribution paid by the employer for the new plan year................ b(2) $
--------------------
Enter date of last payment by employer Month____ Day___ Year______
(3) If (1) is greater than (2), subtract (2) from (1) and enter the funding deficiency
here; otherwise, enter -0-. (If you have a funding deficiency, file Form 5330.) b(3) $
-------------------------------------------------------------------------------------------------------------------------------
16 Has the annual compensation of each participant taken into account under the current plan year been
limited as required by section 401(a)(17)? (See instructions.)............................................. 16 X
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17 a (1) Did the plan distribute any annuity contracts this year? (See instructions.)........................... a(1) X
(2) If (1) is "Yes," did these contracts contain a requirement that the spouse consent before any
distributions under the contract are made in a form other than a qualified joint and survivor annuity?..... a(2) X
-----------
b Did the plan make distributions or loans to married participants and beneficiaries without the required
consent of the participant's spouse?....................................................................... b X
-----------
c Upon plan amendment or termination, do the accrued benefits of every participant include the subsidized
benefits that the participant may become entitled to receive subsequent to the plan amendment or
termination?............................................................................................... c X
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18 Is the plan administrator making an election under section 412(c)(8) for an amendment adopted after the
end of the plan year? (See instructions.).................................................................. 18 X
-----------
19 If a change in the actuarial funding method was made for the plan year pursuant to a Revenue Procedure
providing automatic approval for the change, indicate whether the plan sponsor agrees to the change........ 19
-----------
20 Is the employer electing to compute minimum funding for the plan year using the Transition rule of Code
section 412(I)(11)?........................................................................................ 20
-------------------------------------------------------------------------------------------------------------------------------
21 Check if you are applying the substantiation guidelines from Revenue Procedure 93-42, in completing lines
21a through 21o (see instructions).................................................................. / /
If you checked the box, enter the first day of the plan year for which data is being submitted Month____
Day___ Year______
a Does the employer apply the separate line of business rules of Code section 414(r) when testing this
plan for the coverage and discrimination tests of Code sections 410(b) and 401(a)(4)?...................... 21a X
-----------
b If line 21a is "Yes," enter the total number of separate lines of business claimed by the employer ________
If more than one separate line of business, see instructions for additional information to attach.
c Does the employer apply the mandatory disaggregation rules under Income Tax Regulations section
1.410(b)-7(c)?............................................................................................. c X
-----------
If "Yes," see instructions for additional information to attach.
d In testing whether this plan satisfies the coverage and discrimination tests of Code sections 410(b)
and 401(a), does the employer aggregate plans?............................................................. d X
-----------
e Does the employer restructure the plan into component plans to satisfy the coverage and discrimination
tests of Code sections 410(b) and 401(a)(4)?............................................................... e X
-----------
f If you meet either of the following exceptions, check the applicable box to tell us which exception you
meet and do NOT complete the rest of question 21:
(1) / / No highly compensated employee benefited under the plan at any time during the plan year;
(2) / / This is a collectively bargained plan that benefits only collectively bargained employees, no
more than 2% of whom are professional employees.
g Did any leased employee perform services for the employer at any time during the plan year?................ g X
-----------
h Enter the total number of employees of the employer. Employer includes entities aggregated with the NUMBER
employer under code section 414(b), (c) or (m). Include leased employees and self-employed individuals..... h 1107
-----------
i Enter the total number of employees excludable because of: (1) failure to meet requirements for minimum
age and years of service; (2) collectively bargained employees; (3) nonresident aliens who receive no
earned income from U.S. sources; and (4) 500 hours of service/last day rule................................ i 993
-----------
j Enter the number of nonexcludable employees. Subtract line 21i from line 21h................................ j 114
-----------
k Do 100% of the nonexcludable employees entered on line 21j benefit under the plan?.......... /X/ YES / / NO
If line 21k is "Yes," do NOT complete lines 21l through 21o.
l Enter the number of nonexcludable employees (line 21j) who are highly compensated employees................ l
-----------
m Enter the number of nonexcludable employees (line 21j) who benefit under the plan.......................... m
-----------
n Enter the number of employees entered on line 21m who are highly compensated employees..................... n
-----------
o This plan satisfies the coverage requirements on the basis of (check one):
(1) / / The average benefits test (2) / / The ratio percentage test - Enter percentage / / / /. / / %
-------------------------------------------------------------------------------------------------------------------------------
TEST FOR 401(k) PROVISION
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<TABLE>
Form 5500 (1997) Page
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WELFARE PLANS GO TO LINE 25 ON THIS PAGE.
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22 a Is it or was it ever intended that this plan qualify under Code section 401(a)? If "Yes," complete lines YES NO
22b and 22c................................................................................................. 22a X
-----------
b Enter the date of the most recent IRS determination letter......................... Month____ Year_______
c Is a determination letter request pending with the IRS?..................................................... c X
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23 a Does the plan hold any assets that have a fair market value that is not readily determinable on an
established market?.........................................................................................
(If "Yes," complete line 23b) (See instructions) ........................................................... 23a X
-----------
b Were all the assets referred to in line 23a valued for the 1997 plan year by an independent third-party
appraiser?.................................................................................................. b
-----------
c If line 23b in "No," enter the value of the assets that were not valued by an independent third-party
appraiser for the 1997 plan year. ____________________________
d Enter the most recent date the assets on line 23c were valued by an independent third-party appraiser.
(If more than one asset, see instructions.) Month____ Day___ Year______
(If this plan does not have ESOP features leave line 23e blank and go to line 24.)
e If dividends paid on employer securities held by the ESOP were used to make payments on ESOP loans, enter
the amount of the dividends used to make the payments................................................ [23e]
-------------------------------------------------------------------------------------------------------------------------------
24 Does the employer/sponsor listed on line 1a of this form maintain other qualified pension benefit plans?.... 24 X
-----------
If "Yes," enter the total number of plans, including this plan
-------------------------------------------------------------------------------------------------------------------------------
25 a Did any person who rendered services to the plan receive directly or indirectly $5,000 or more in
compensation from the plan during the plan year (except for employees of the plan who were paid less than
$1,000 in each month)?...................................................................................... 25a X
-----------
If "Yes," complete Part I of SCHEDULE C (Form 5500).
b Did the plan have any trustees who must be listed in Part II of SCHEDULE C (Form 5500)?..................... b X
-----------
c has there been a termination in the appointment of any person listed on line 25d below?..................... c X
-----------
d If line 25c is "Yes," check the appropriate box(es), answer lines 25e and 25f, and complete Part III of
SCHEDULE C (Form 5500):
(1) / / Accountant (2) / / Enrolled actuary (3) / / Insurance carrier (4) / / Custodian
(5) / / Administrator (6) / / Investment manager (7) / / Trustee
e Have there been any outstanding material disputes or matters of disagreement concerning the above
termination?................................................................................................ e
-----------
f If an accountant or enrolled actuary has been terminated during the plan year, has the terminated
accountant/actuary been provided a copy of the explanation required by Part III of SCHEDULE C (Form 5500)
with a notice advising them of their opportunity to submit comments on the explanation directly to the DOL?.. f
-----------
g Enter the number of SCHEDULES C (Form 5500) that are attached. If none, enter -0- 1
-------------------------------------------------------------------------------------------------------------------------------
26 a Is this plan exempt from the requirement to engage an independent qualified public accountant?
(see instructions).......................................................................................... 26a X
-----------
b If line 26a is "No," attach the accountant's opinion to this return/report and check the appropriate box.
This opinion is:
(1) / / Unqualified
(2) / / Qualified/disclaimer per Department of Labor Regulations 29 CFR 2520.103-8 and /or 2520.103-12(d)
(3) / / Qualified/disclaimer other (4) / / Adverse (5) / / Other (explain)__________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
c If line 26a is "No," does the accountant's report, including the financial statements and/or notes required
to be attached to this return/report disclose (1) errors or irregularities; (2) illegal acts; (3) material
internal control weaknesses; (4) a loss contingency indicating that assets are impaired or a liability
incurred; (5) significant real estate or other transactions in which the plan and (A) the sponsor, (B) the
plan administrator, (C) the employer(s), or (D) the employee organization(s) are jointly involved; (6) that
the plan has participated in any related party transactions; or (7) any unusual or infrequent events or
transactions occurring subsequent to the plan year end that might significantly affect the usefulness of
the financial statements in assessing the plan's present or future ability to pay benefits?................. c
-----------
d If line 26c is "Yes," provide the total amount involved in such disclosure
-------------------------------------------------------------------------------------------------------------------------------
27 If line 26a is "No," complete the following questions. (You may NOT use "N/A" in response to lines 27a
through 27i):
If line 27a, 27b, 27c, 27d, 27e, or 27f is checked "Yes," schedules of these items in the format set
forth in the instructions are required to be attached to this return/report. SCHEDULE G (Form 5500) may
be used as specified in the instructions. During the plan year:
a Did the plan have assets held for investment?............................................................... 27a X
-----------
b Were any loans by the plan or fixed income obligations due the plan in default as of the close of the
plan year or classified during the year as uncollectible?................................................... b X
-----------
c Were any leases to which the plan was a party in default or classified during the year as uncollectible?.... c X
-----------
d Were any plan transactions or series of transactions in excess of 5% of the current value of plan assets?... d X
-----------
e Do the notes to the financial statements accompanying the accountant's opinion disclose any nonexempt
transactions with parties-in-interest?...................................................................... e
-----------
f Did the plan engage in any nonexempt transactions with parties-in-interest not reported on line 27e?........ f X
-----------
g Did the plan hold qualifying employer securities that are not publicly traded?............................... g X
-----------
h Did the plan purchase or receive any nonpublicly traded securities that were not appraised in writing by
an unrelated third party within 3 months prior to their receipt?............................................ h X
-----------
i Did any person manage plan assets who had a financial interest worth more than 10% in any party providing
services to the plan or receive anything of value from any party providing services to the plan?............ i X
</TABLE>
<PAGE>
Form 55000(1997) Page 5
<TABLE>
<CAPTION>
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Yes No
--------------------
<S><C>
28 Did the plan acquire individual whole life insurance contracts during the plan year?. . 28 X
- ---------------------------------------------------------------------------------------------------------------------
29 During the plan year:
a (1) Was this plan covered by a fidelity bond? If "Yes," complete lines 29a(2)
and 29a(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29a(1) X
(2) Enter amount of bond $ 50,0000
----------------------------------------------------------
(3) Enter the name of the surety company HARTFORD FIRE INSURANCE CO.
-------------------------------------------
b (1) Was there any loss to the plan, whether or not reimbursed, caused by fraud
or dishonesty?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29b(1) X
(2) If line 29b(1) is "Yes", enter amount of loss $
- ---------------------------------------------------------------------------------------------------------------------
30 a Is the plan covered under the Pension Benefit Guaranty Corporation
termination insurance program?
/ / YES / / NO / / NOT DETERMINED
b If line 30a is "Yes" or "Not determined," enter the employer
identification number and the plan number used to identify it.
Employer identification number Plan number
- ----------------------------------------------------------------------------
31 Current value of plan assets and liabilities at the beginning and end of
the plan year. Combine the value of plan assets held in more than one
trust. Allocate the value of the plan's interest in a commingled trust
containing the assets of more than one plan on a line-by-line basis
unless the trust meets one of the specific exceptions described in the
instructions. Do not enter the value of that portion of an insurance
contract that guarantees, during this plan year, to pay a specific dollar
benefit at a future date. ROUND OFF AMOUNTS TO THE NEAREST DOLLAR, ANY
OTHER AMOUNTS ARE SUBJECT TO REJECTION. Plans with no assets at the
beginning and at the end of the plan year, enter -0- on line 31f.
- -----------------------------------------------------------------------------------------------------------------------
(a) Beginning of year (b) End of Year
--------------------- ----------------
ASSETS
a Total noninterest-bearing cash. . . . . . . . . . . . . . . . . . a 0 0
---------------------------------------------
b Receivables: (1) Employer contributions . . . . . . . . . . . . . b(1) 1,041 582
---------------------------------------------
(2) Participant contributions . . . . . . . . . . . . . . . . . (2) 3,855 3,087
---------------------------------------------
(3) Income. . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 0 0
---------------------------------------------
(4) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 0 0
---------------------------------------------
(5) Less allowance for doubtful accounts. . . . . . . . . . . . (5) 0 0
---------------------------------------------
(6) Total. Add lines 31b(1) through 31b(4) and
subtract 31b(5). . . . . . . . . . . . . . . . . . . . . . (6) 4,896 3,669
---------------------------------------------
c General Investments: (1) Interest-bearing cash (including money
market funds). . . . . . . . . . . . . . . . . . . . . . . . . . c(1) 0 0
---------------------------------------------
(2) Certificates of deposit . . . . . . . . . . . . . . . . . . (2) 0 0
---------------------------------------------
(3) U.S. Government securities. . . . . . . . . . . . . . . . . (3) 0 0
---------------------------------------------
(4) Corporate debt instruments: (A) Preferred . . . . . . . . . (4)(A) 0 0
---------------------------------------------
(B) All other . . . . . . . . . . . . . . . . . . . . . . . (4)(B) 0 0
---------------------------------------------
(5) Corporate stocks: (A) Preferred . . . . . . . . . . . . . . (5)(A) 0 0
---------------------------------------------
(B) Common. . . . . . . . . . . . . . . . . . . . . . . . . (5)(B) 0 0
---------------------------------------------
(6) Partnership/joint venture interests. . . . . . . . . . . . (6) 0 0
---------------------------------------------
(7) Real estate: (A) Income-producing . . . . . . . . . . . . . (7)(A) 0 0
---------------------------------------------
(B) Nonincome-producing . . . . . . . . . . . . . . . . . . (7)(B) 0 0
---------------------------------------------
(8) Loans (other than to participants) secured by mortgages:
(A) Residential . . . . . . . . . . . . . . . . . . . . . . (8)(A) 0 0
---------------------------------------------
(B) Commercial . . . . . . . . . . . . . . . . . . . . . . (8)(B) 0 0
---------------------------------------------
(9) Loans to participants: (A) Mortgages . . . . . . . . . . . (9)(A) 0 0
---------------------------------------------
(B) Other . . . . . . . . . . . . . . . . . . . . . . . . . (9)(B) 0 0
---------------------------------------------
(10) Other loans . . . . . . . . . . . . . . . . . . . . . . . . (10) 0 0
---------------------------------------------
(11) Value of interest in common/collective trusts . . . . . . . (11) 0 0
---------------------------------------------
(12) Value of interest in pooled separate accounts . . . . . . . (12) 167,963 318,656
---------------------------------------------
(13) Value of interest in master trusts. . . . . . . . . . . . . (13) 0 0
(14) Value of interest in 103-12 investment entities . . . . . . (14) 0 0
---------------------------------------------
(15) Value of interest in registered investment companies. . . . (15) 0 0
---------------------------------------------
(16) Value of funds held in insurance company general account
(unallocated contracts) . . . . . . . . . . . . . . . . . (16) 37,914 54,707
---------------------------------------------
(17) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) 0 0
---------------------------------------------
(18) Total. Add lines 31c(1) through 31c(17) . . . . . . . . . . (18) 205,877 373,363
---------------------------------------------
d Employer-related investments: (1) Employer securities . . . . . . d(1) 76,997 118,302
---------------------------------------------
(2) Employer real property. . . . . . . . . . . . . . . . . . . (2) 0 0
---------------------------------------------
e Buildings and other property used in plan operation . . . . . . . e 0 0
---------------------------------------------
f TOTAL assets. Add lines 31a, 31b(6), 31c(18), 31d(1), 31d(2),
and 31e. . . . . . . . . . . . . . . . . . . . . . . . . . . . . f 287,770 495,334
---------------------------------------------
---------------------------------------------
LIABILITIES
g Benefit claims payable. . . . . . . . . . . . . . . . . . . . . . g 0 0
---------------------------------------------
h Operation payables . . . . . . . . . . . . . . . . . . . . . . . h 0 0
---------------------------------------------
i Acquisition indebtedness. . . . . . . . . . . . . . . . . . . . . i 0 0
---------------------------------------------
j Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . j 0 0
---------------------------------------------
k TOTAL liabilities. Add lines 31g through 31j . . . . . . . . . . k 0 0
---------------------------------------------
---------------------------------------------
NET ASSETS
l Subtract line 31k from line 31f . . . . . . . . . . . . . . . . . l 287,770 495,334
- -----------------------------------------------------------------------------------------------------------------------
<PAGE>
Form 55000(1997) Page 6
- --------------------------------------------------------------------------------
32 Plan income, expenses, and changes in net assets for the plan year, INCLUDE
ALL INCOME AND EXPENSES OF THE PLAN, INCLUDING ANY TRUST(S) OR SEPARATELY
MAINTAINED FUND(S), AND ANY PAYMENTS/RECEIPTS TO/FROM INSURANCE CARRIERS.
ROUND OFF AMOUNTS TO THE NEAREST DOLLAR; ANY OTHER AMOUNTS ARE SUBJECT TO
REJECTION.
- -----------------------------------------------------------------------------------------------------------------------
(a) Amount (b) Total
---------------------------------
INCOME
a CONTRIBUTIONS:
(1) Received or receivable from:
(A) Employers . . . . . . . . . . . . . . . . . . . . . . . a(1)(A) 32,314
--------------------------
(B) Participants. . . . . . . . . . . . . . . . . . . . . . (B) 148,379
--------------------------
(C) Others. . . . . . . . . . . . . . . . . . . . . . . . . (C) 46
--------------------------
(2) Noncash contributions. . . . . . . . . . . . . . . . . . . . (2) 0
----------------------------------------------
(3) Total contributions. Add lines 32a(1)(A), (B), (C) and
line 32a(2) . . . . . . . . . . . . . . . . . . . . . . . . (3) 180,739
--------- ----------------
b EARNINGS ON INVESTMENTS:
(1) Interest
(A) Interest-bearing cash (including money market funds). . b(1)(A) 0
--------------------------
(B) Certificates of deposit . . . . . . . . . . . . . . . . (B) 0
--------------------------
(C) U.S. Government securities. . . . . . . . . . . . . . . (C) 0
--------------------------
(D) Corporate debt instruments. . . . . . . . . . . . . . . (D) ( 8,993)
--------------------------
(E) Mortgage loans. . . . . . . . . . . . . . . . . . . . . (E) 0
--------------------------
(F) Other loans . . . . . . . . . . . . . . . . . . . . . . (F) 0
--------------------------
(G) Other interest. . . . . . . . . . . . . . . . . . . . . (G) 2,793
----------------------------------------------
(H) Total interest. Add lines 32b(1)(A) through (G). . . . (H) ( 6,200)
--------- ----------------
(2) Dividends: (A) Preferred stock . . . . . . . . . . . . . . . b(2)(A) 0
--------------------------
(B) Common stock. . . . . . . . . . . . . . . . . . . . . . (B) 0
----------------------------------------------
(C) Total dividends. Add lines 32b(A) and (B) . . . . . . . (C) 0
----------------------------------------------
(3) Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 0
--------- ----------------
(4) Net gain (loss) on sale of assets: (A) Aggregate proceeds. . (4)(A) 0
--------------------------
(B) Aggregate carrying amount (see instructions). . . . . . (B) 0
--------------------------
(C) Subtract (B) from (A) and enter result. . . . . . . . . (C) 0
--------- ----------------
(5) Unrealized appreciation (depreciation) of assets . . . . . . (5) 0
--------- ----------------
(6) Net investment gain (loss) from common/collective trust. . . (6) 0
--------- ----------------
(7) Net investment gain (loss) from pooled separate accounts . . (7) 50,207
--------- ----------------
(8) Net investment gain (loss) from master trusts. . . . . . . . (8) 0
--------- ----------------
(9) Net investment gain (loss) from 103-12 investment entities . (9) 0
--------- ----------------
(10) Net investment gain (loss) from registered investment
companies . . . . . . . . . . . . . . . . . . . . . . . . . (10) 0
--------- ----------------
c Other income. . . . . . . . . . . . . . . . . . . . . . . . . . . c 87
--------- ----------------
d Total income. Add all amounts in column (b) and enter total . . . d 224,833
--------- ----------------
EXPENSES
e Benefit payment and payments to provide benefits:
(1) Directly to participants or beneficiaries. . . . . . . . . . e(1) 17,266
--------------------------
(2) To insurance carriers for the provision of benefits. . . . . (2) 0
--------------------------
(3) Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 0
----------------------------------------------
(4) Total payments. Add lines 32e(1) through 32e(3). . . . . . . (4) 17,266
--------- ----------------
f Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . f 0
--------- ----------------
g Administrative expenses: (1) Salaries and allowances. . . . . . . g(1) 0
--------------------------
(2) Account fees . . . . . . . . . . . . . . . . . . . . . . . . (2) 0
--------------------------
(3) Actuarial fees . . . . . . . . . . . . . . . . . . . . . . . (3) 0
--------------------------
(4) Contract administrator fees. . . . . . . . . . . . . . . . . (4) 0
--------------------------
(5) Investment advisory and management fees. . . . . . . . . . . (5) 0
--------------------------
(6) Legal fees . . . . . . . . . . . . . . . . . . . . . . . . . (6) 0
--------------------------
(7) Valuation/appraisal fees . . . . . . . . . . . . . . . . . . (7) 0
--------------------------
(8) Trustees fees/expenses (including travel, seminars,
meetings, etc.) . . . . . . . . . . . . . . . . . . . . . . (8) 0
--------------------------
(9) Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) 3
----------------------------------------------
(10) Total administrative expenses. Add lines 32g(1) through
32g(9). . . . . . . . . . . . . . . . . . . . . . . . . . . (10) 3
--------- ----------------
h Total expenses. Add lines 32e(4), 32f, and 32g(10) . . . . . . . h 17,269
--------- ----------------
i Net income (loss). Subtract line 32h from line 32d. . . . . . . . i 207,564
--------- ----------------
j Transfers to (from) the plan (see instructions) . . . . . . . . . j 0
--------- ----------------
k Net assets at beginning of year (line 31l, column (a)). . . . . . k 287,770
--------- ----------------
l Net assets at end of year (line 31l column (b)) . . . . . . . . . l 495,334
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Yes No
-------
33 Did any employer sponsoring the plan pay any of the administrative
expenses of the plan that were not reported on line 32g? X
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
1997
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
21 Check if you are applying the substantiation guidelines from Revenue Procedure 93-42, in completing YES NO
lines 21a through 21o (see instructions).......................................................... / /
If you checked the box, enter the first day of the plan year for which data is being
submitted Month __ Day__Year__
a Does the employer apply the separate line of business rules of Code section 414(r) when testing
this plan for the coverage and discrimination tests of Code sections 410(b) and 401(a)(4)?............. 21a X
-----------------
b If line 21a is "Yes," enter the total number of separate lines of business claimed by the
employer ______________
If more than one separate line of business, see instructions for additional information to attach.
c Does the employer apply the mandatory disaggregation rules under Income Tax Regulations section
1.410(b)-7(c)?......................................................................................... c X
If "Yes," see instructions for additional information to attach. -----------------
d In testing whether this plan satisfies the coverage and discrimination tests of Code sections 410(b) and
401(a), does the employer aggregate plans?............................................................. d X
-----------------
e Does the employer restructure the plan into component plans to satisfy the coverage and discrimination
tests of Code sections 410(b) and 401(a)(4)?............................................................ e X
-----------------
f If you meet either of the following exceptions, check the applicable box to tell us which exception you
meet and do NOT complete the rest of question 21:
(1) / / No highly compensated employee benefited under the plan at any time during the plan year;
(2) / / This is a collectively bargained plan that benefits only collectively bargained employees, no
more than 2% of whom are professional employees.
g Did any leased employee perform services for the employer at any time during the plan year?............ g X
-----------------
h Enter the total number of employees of the employer. Employer includes entities aggregated with the
employer under Code section 414(b), (c), or (m). Include leased employees and self-employed NUMBER
individuals. .......................................................................................... h 1107
-----------------
i Enter the total number of employees excludable because of: (1) failure to meet requirements for
minimum age and years of service; (2) collectively bargained employees; (3) nonresident aliens who
receive no earned income from U.S. sources; and (4) 500 hours of service/last day rule ................ i 993
-----------------
j Enter the number of nonexcludable employees. Subtract line 21i from 21h ............................... j 114
-----------------
k Do 100% of the nonexcludable employees entered on line 21j benefit under the plan?...... /X/ YES / / NO
If line 21k is "Yes," do NOT complete lines 21l through 21o.
l Enter the number of nonexcludable employees (line 21j) who are highly compensated employees............ l
-----------------
m Enter the number of nonexcludable employees (line 21j) who benefit under the plan..................... m
-----------------
n Enter the number of employees entered on line 21m who are highly compensated employees................. n
-----------------
o This plan satisfies the coverage requirements on the basis of (check one):
(1) / / The average benefits test
(2) / / The ratio percentage test - Enter percentage / / / / ./ / %
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
TEST FOR 401(m) PROVISION
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
<TABLE>
<CAPTION>
POOLED SEPARATE ACCOUNT-
MONEY MARKET
BALANCE SHEET
- ---------------------------------------------------
ASSETS
<S> <C>
Bonds $1,318,085,842
Bank Deposits 881,245
Receivable From Principal Life
Insurance Company 15,568,149
--------------
Total Assets $1,334,535,236
--------------
--------------
<CAPTION>
- ---------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $1,333,698,656
Remitted & Items Not Allocated 836,580
--------------
Total Liabilities 1,334,535,236
Surplus 0
--------------
Total Liabilities and Surplus $1,334,535,236
--------------
--------------
<CAPTION>
SUMMARY OF OPERATIONS
- ---------------------------------------------------
RECEIPTS
<S> <C>
Deposits and Net Transfers $ 422,129,509
Interest Income 70,362,679
--------------
Total Receipts $ 492,492,188
<CAPTION>
- ---------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 153,071,545
Benefit Payments 200,999,451
Investment Management, Mortality,
and Administration Charges 9,343,356
Investment Expenses 1,004,447
--------------
Total Disbursements 364,418,799
--------------
Increase in Reserves $ 128,073,389
--------------
--------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
<TABLE>
<CAPTION>
FINANCIAL POOLED SEPARATE ACCOUNT-
GROUP GOVERNMENT SECURITIES
BALANCE SHEET
- ---------------------------------------------------------------
ASSETS
<S> <C>
Bonds $294,362,383
Bank Deposits 2,394
Adjustment to Investments
to Reflect Market Value 8,633,027
Investment Income Due & Accrued 1,623,793
Receivable From Principal Life
Insurance Company 6,604,123
------------
Total Assets $311,225,720
------------
------------
<CAPTION>
- ---------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $302,363,564
Payable For Investments Purchased 8,862,156
------------
Total Liabilities 311,225,720
Surplus 0
------------
Total Liabilities & Surplus $311,225,720
------------
------------
<CAPTION>
SUMMARY OF OPERATIONS
- ---------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $106,613,086
Gross Investment Income:
Interest Income 16,345,283
Change In:
Investment Income
Earned But Not Collected 526,560
Accrued Interest Receivable (306,404) 16,565,439
-----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 8,088,853
Realized Capital Gain 69,095
------------
Total Receipts $131,336,473
<CAPTION>
- ---------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 11,376,255
Benefit Payments 14,478,578
Investment Management, Mortality,
and Administration Charges 1,758,633
Investment Expenses 190,687
------------
Total Disbursements 27,804,153
------------
Increase in Reserves $103,532,320
------------
------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
<TABLE>
<CAPTION>
FINANCIAL POOLED SEPARATE ACCOUNT-
GROUP BOND AND MORTGAGE
BALANCE SHEET
- --------------------------------------------------------------
ASSETS
<S> <C>
Bonds $1,686,537,305
Preferred Stock 14,365,039
Mortgage Loans 748,434,819
Real Estate 28,911,791
Bank Deposits 5,558,492
Adjustment to Investments
to Reflect Market Value 101,738,490
Investment Income Due & Accrued 25,504,528
Prepaid Expense & Taxes 12,233
Foreign Tax Receivable 10
Receivable From Principal Life
Insurance Company 15,187,580
--------------
Total Assets $2,626,250,287
--------------
--------------
<CAPTION>
- --------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $2,525,875,591
Expenses & Taxes Due & Accrued 68,558
Unearned Investment Income 147,716
Remitted & Items Not Allocated 1,179,346
Payable for Investments Purchased 97,276,171
Rental Guarantee Agreement 31,522
Security Deposits Retained by
Principal Life Insurance Company 1,671,383
--------------
Total Liabilities 2,626,250,287
Surplus 0
--------------
Total Liabilities & Surplus $2,626,250,287
--------------
--------------
<CAPTION>
SUMMARY OF OPERATIONS
- --------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $366,297,665
Gross Investment Income:
Dividend Income 2,344,696
Interest Income 169,249,326
Rental Income 4,435,655
Investment Fee Income 62,361
Change In:
Investment Income
Earned But Not Collected (1,395,724)
Unearned Investment Income 147,716 174,844,030
-----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 57,503,373
Realized Capital Gain 4,313,196
------------
Total Receipts $602,958,264
<CAPTION>
- --------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $116,131,261
Benefit Payments 145,336,706
Investment Management, Mortality,
and Administration Charges 14,134,611
Investment Expenses 3,594,539
------------
Total Disbursements 279,197,117
------------
Increase in Reserves $323,761,147
------------
------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
<TABLE>
<CAPTION>
POOLED SEPARATE ACCOUNT-
BOND EMPHASIS BALANCED
BALANCE SHEET
- ------------------------------------------------------------------
ASSETS
<S> <C>
Investment in Principal Life Insurance
Company Separate Account:
Bond and Mortgage $ 94,965,913
Government Securities 63,298,179
U.S. Stock 10,229,101
International Stock 35,985,966
Real Estate 34,681,084
Large Company Value 11,213,866
Small Company Value 2,650,794
Large Company Growth 7,627,601
Small Company Growth 1,276,855
Adjustment to Investments
to Reflect Market Value 35,005,685
Remitted and Items Not Allocated 9,158,293
------------
Total Assets $306,093,337
------------
------------
<CAPTION>
- ------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $306,093,337
------------
Total Liabilities 306,093,337
Surplus 0
------------
Total Liabilities & Surplus $306,093,337
------------
------------
<CAPTION>
SUMMARY OF OPERATIONS
- ------------------------------------------------------------------
RECEIPTS
<S> <C>
Deposits and Net Transfers $107,967,309
Change in Net Unrealized
Appreciation/Depreciation of
Investments 13,608,932
Realized Capital Gain 16,351,290
------------
Total Receipts $137,927,531
<CAPTION>
DISBURSEMENTS
- ------------------------------------------------------------------
<S> <C>
Funds Withdrawn $ 13,760,091
Benefit Payments 15,174,759
Investment Management, Mortality,
and Administration Charges 506,513
------------
Total Disbursements 29,441,363
------------
Increase in Reserves $108,486,168
------------
------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
<TABLE>
<CAPTION>
POOLED SEPARATE ACCOUNT-
STOCK EMPHASIS BALANCED
BALANCE SHEET
- --------------------------------------------------------------------
ASSETS
<S> <C>
Investment in Principal Life
Insurance Company Separate Account:
Bond and Mortgage $ 83,339,967
Government Securities 55,664,606
U.S. Stock 66,591,488
International Stock 126,320,948
Real Estate 124,575,935
Large Company Value 75,687,145
Small Company Value 18,650,205
Large Company Growth 51,022,873
Small Company Growth 6,024,975
Adjustments to Investments
to Reflect Market Value 75,132,584
Remitted and Items Not Allocated 11,402,228
------------
Total Assets $694,412,954
------------
------------
<CAPTION>
- --------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $694,412,954
------------
Total Liabilities 694,412,954
Surplus 0
------------
Total Liabilities & Surplus $694,412,954
------------
------------
<CAPTION>
SUMMARY OF OPERATIONS
- -------------------------------------------------------------------
RECEIPTS
<S> <C>
Deposits and Net Transfers $235,205,548
Change in Net Unrealized
Appreciation/Depreciation of
Investments 52,245,900
Realized Capital Gain 37,880,132
------------
Total Receipts $325,331,580
<CAPTION>
- --------------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 25,989,706
Benefit Payments 35,227,518
Investment Management, Mortality,
and Administration Charges 1,229,716
------------
Total Disbursements 62,446,940
------------
Increase in Reserves $262,884,640
------------
------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
STOCK INDEX 500
<TABLE>
<CAPTION>
BALANCE SHEET
- --------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 14,497,583
Common Stock 1,624,456,650
Bank Deposits 141,991
Adjustment to Investments
to Reflect Market Value 857,942,125
Investment Income Due & Accrued 3,328,388
Receivable From Principal Life
Insurance Company General
Account 37,288,030
Remitted & Items not Allocated 39,133
--------------
Total Assets $2,537,693,900
--------------
--------------
<CAPTION>
- --------------------------------------------------------------------
LIABILITIES
<S> <C>
Unallocated Reserves $2,515,246,770
Payable for Investments Purchased 13,860,236
Payable to Principal Life
Insurance Company 32,537
--------------
Total Liabilities 2,529,139,543
Surplus* 8,554,357
--------------
Total Liabilities & Surplus $2,537,693,900
--------------
--------------
<CAPTION>
SUMMARY OF OPERATIONS
- --------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $885,710,509
Gross Investment Income:
Dividend Income 32,425,484
Interest Income 309,980
Investment Fee Income 1,721
Change in Investment Income
Earned But Not Collected 1,081,517 33,818,702
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 474,962,837
Realized Capital Gain 5,050,713
--------------
Total Receipts $1,399,542,761
<CAPTION>
- --------------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Benefit Payments $ 105,261,020
Funds Withdrawn 87,911,938
Investment Management, Mortality,
and Administration Charges 10,544,278
Investment Expenses 1,514,622
--------------
Total Disbursements 205,231,858
--------------
Increase in Reserves 1,189,452,514
Contributed Surplus 4,858,389
--------------
$1,194,310,903
--------------
--------------
</TABLE>
* This is Principal Life Insurance Company Surplus Funds used as seed money
to the account; it is net of deposits +(-) income and disbursements.
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
U.S. STOCK
<TABLE>
<CAPTION>
BALANCE SHEET
- -----------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 34,243,673
Common Stock 6,654,171,221
Bank Deposits 70,779
Adjustment to Investments
to Reflect Market Value 1,570,842,203
Investment Income Due & Accrued 11,572,062
Receivable for Investments Sold 19,151,568
Receivable From Principal Life
Insurance Company 64,500,535
Remitted & Items Not Allocated 41,739
--------------
Total Assets $8,354,593,780
--------------
--------------
<CAPTION>
- -----------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Allocated Annuities Reserve $ 110,035,187
Unallocated Reserves 8,244,558,593
--------------
Total Liabilities 8,354,593,780
Surplus 0
--------------
Total Liabilities & Surplus $8,354,593,780
--------------
--------------
<CAPTION>
SUMMARY OF OPERATIONS
- -----------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $ 283,372,609
Gross Investment Income:
Dividend Income 158,921,804
Interest Income 2,934,183
Investment Fee Income 2,733
Change in Investment Income
Earned But Not Collected (1,091,699) 160,767,021
Change in Net Unrealized ------------
Appreciation/Depreciation of
Investments 461,789,406
Realized Capital Gain 1,144,485,540
--------------
Total Receipts $2,050,414,576
<CAPTION>
- -----------------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 341,452,981
Benefit Payments 397,991,627
Annuity Payments 10,868,434
Investment Management, Mortality,
and Administration Charges 46,807,431
Investment Expenses 6,160,567
--------------
Total Disbursements 803,281,040
--------------
Increase in Reserves $1,247,133,536
--------------
--------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
FINANCIAL POOLED SEPARATE ACCOUNT-
GROUP MEDIUM COMPANY VALUE
<TABLE>
<CAPTION>
BALANCE SHEET
- -----------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 21,446,038
Common Stock 689,396,926
Bank Deposits 69,258
Adjustment to Investments
to Reflect Market Value 168,420,030
Investment Income Due and Accrued 946,709
Receivable From Principal Life
Insurance Company 12,336,672
Remitted & Items Not Allocated 940,067
------------
Total Assets $893,555,700
<CAPTION>
- -----------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $888,740,833
Payable for Investments Purchased 4,814,867
------------
Total Liabilities 893,555,700
Surplus 0
------------
Total Liabilities & Surplus $893,555,700
------------
------------
<CAPTION>
SUMMARY OF OPERATIONS
- -----------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $253,069,331
Gross Investment Income:
Dividend Income 22,836,524
Interest Income 789,995
Change in Investment Income
Earned But Not Collected (436,688) 23,189,831
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 132,019,111
Realized Capital Gain 52,723,100
------------
Total Receipts $461,001,373
<CAPTION>
- -----------------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 26,597,541
Benefit Payments 33,718,076
Investment Management, Mortality,
and Administration Charges 4,893,032
Investment Expenses 534,664
------------
Total Disbursements 65,743,313
------------
Increase in Reserves $395,258,060
------------
------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
FINANCIAL POOLED SEPARATE ACCOUNT-
GROUP MEDIUM COMPANY BLEND
<TABLE>
<CAPTION>
BALANCE SHEET
- -------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 74,235,683
Preferred Stock 55,108
Common Stock 644,621,090
Bank Deposits 69,840
Adjustment to Investments
to Reflect Market Value 200,109,622
Investment Income Due & Accrued 912,222
Receivable From Principal Life
Insurance Company 13,987,726
------------
Total Assets $933,991,291
------------
------------
<CAPTION>
- -------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $932,152,449
Payable for Investments Purchased 1,838,842
------------
Total Liabilities 933,991,291
Surplus 0
------------
Total Liabilities & Surplus $933,991,291
------------
------------
<CAPTION>
SUMMARY OF OPERATIONS
- -------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $301,278,847
Gross Investment Income:
Dividend Income 8,991,605
Interest Income 3,228,991
Change in Investment Income
Earned But Not Collected 55,742 12,276,338
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 90,294,812
Realized Capital Gain 60,313,154
------------
Total Receipts $464,163,151
<CAPTION>
- -------------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 28,401,218
Benefit Payments 42,015,673
Investment Management, Mortality,
and Administration Charges 5,677,339
Investment Expenses 603,621
------------
Total Disbursements 76,697,851
------------
Increase in Reserves $387,465,300
------------
------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
FINANCIAL POOLED SEPARATE ACCOUNT-
GROUP SMALL COMPANY BLEND
<TABLE>
<CAPTION>
BALANCE SHEET
- ---------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 93,515,288
Common Stock 1,260,185,619
Bank Deposits 105,077
Adjustment to Investments
to Reflect Market Value 242,731,337
Investment Income Due & Accrued 547,122
Receivable From Principal Life
Insurance Company 29,954,570
--------------
Total Assets $1,627,038,953
--------------
--------------
<CAPTION>
- ---------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $1,627,038,872
Remitted & Items Not Allocated 81
--------------
Total Liabilities 1,627,038,953
Surplus 0
--------------
Total Liabilities & Surplus $1,627,038,953
--------------
--------------
<CAPTION>
SUMMARY OF OPERATIONS
- ---------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $ 489,895,774
Gross Investment Income:
Dividend Income 7,695,353
Interest Income 4,325,285
Change in Investment Income
Earned But Not Collected 226,008 12,246,646
---------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 125,504,344
Realized Capital Gain 109,931,043
--------------
Total Receipts $ 737,577,807
--------------
<CAPTION>
--------------
DISBURSEMENTS
- ---------------------------------------------------------------------
<S> <C>
Funds Withdrawn $ 50,390,528
Benefit Payments 71,958,339
Investment Management, Mortality,
and Administration Charges 9,829,990
Investment Expenses 1,056,317
--------------
Total Disbursements 133,235,174
--------------
Increase in Reserves $ 604,342,633
--------------
--------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
FINANCIAL POOLED SEPARATE ACCOUNT-
GROUP INTERNATIONAL STOCK
<TABLE>
<CAPTION>
BALANCE SHEET
- --------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 149,977,548
Common Stock 1,942,232,873
Bank Deposits 336,520
Adjustment to Investments
to Reflect Market Value 443,869,110
Investment Income Due & Accrued 5,198,087
Receivable for Investments Sold 4,577,014
Foreign Tax Receivable 1,342,497
Receivable From Principal
Life Insurance Company 22,069,242
Remitted & Items Not Allocated 14,677
--------------
Total Assets $2,569,617,568
--------------
--------------
<CAPTION>
- --------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $2,569,617,568
--------------
Total Liabilities 2,569,617,568
Surplus 0
--------------
Total Liabilities & Surplus $2,569,617,568
--------------
--------------
<CAPTION>
SUMMARY OF OPERATIONS
- --------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $ 636,501,914
Gross Investment Income:
Dividend Income 59,710,407
Interest Income 9,844,276
Interest Fee Income 48
Change in:
Investment Income
Earned But Not Collected 1,279,714
Accrued Interest Receivable (19,244) 70,815,201
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 68,367,521
Realized Capital Gain 135,808,566
--------------
Total Receipts $ 911,493,202
<CAPTION>
- --------------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Benefit Payments $ 123,231,959
Funds Withdrawn 96,342,484
Investment Management, Mortality,
and Administration Charges 14,056,067
Investment Expenses 9,338,873
--------------
Total Disbursements 242,969,383
--------------
Increase in Reserves $ 668,523,819
--------------
--------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
[LOGO] 12/31/1997 FUND STATEMENT
FINANCIAL POOLED SEPARATE ACCOUNT-
GROUP REAL ESTATE
<TABLE>
<CAPTION>
BALANCE SHEET
- -------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 55,404,831
Common Stock 39,814,922
Real Estate 528,159,878
Bank Deposits 506,107
Notes Receivable 240,743
Adjustment to Investments
to Reflect Market Value (3,430,761)
Investment Income Due & Accrued 3,197,026
Prepaid Expenses & Taxes 239,457
Receivable From Principal Life
Insurance Company 7,808,908
------------
Total Assets $631,941,111
------------
------------
<CAPTION>
- -------------------------------------------------------------------
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $614,288,816
Expenses & Taxes Due & Accrued 7,193,058
Unearned Investment Income 103,044
Remitted & Items Not Allocated 600,541
Payable for Investments Purchased 6,773,161
Security Deposits Retained by
Principal Life Insurance Company 2,982,491
------------
Total Liabilities 631,941,111
Surplus 0
------------
Total Liabilities & Surplus $631,941,111
------------
------------
<CAPTION>
SUMMARY OF OPERATIONS
- -------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $230,352,377
Gross Investment Income:
Dividend Income 437,508
Interest Income 5,906,021
Rental Income 48,946,072
Change in:
Investment Income
Earned But Not Collected 1,508,727
Unearned Investment
Income 103,044 56,901,372
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 26,355,915
Realized Capital Loss (1,853,278)
------------
Total Receipts $311,756,386
<CAPTION>
- -------------------------------------------------------------------
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 16,134,303
Benefit Payments 16,537,084
Investment Management, Mortality,
and Administration Charges 2,680,483
Investment Expenses 23,785,153
------------
Total Disbursements 59,137,023
------------
Increase in Reserves $252,619,363
------------
------------
</TABLE>
Principal Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
<TABLE>
<S><C>
SCHEDULE A OMB NO. 1210-0016
(FORM 5500) INSURANCE INFORMATION ---------------------
Department of the Treasury
Internal Revenue Service 1997
--------------
Department of Labor This schedule is required to be filed under section 104 of the ---------------------
Pension and Welfare Benefits Employee Retirement Income Security Act of 1974. THIS FORM IS
Administration FILE AS AN ATTACHMENT TO FORM 5500 OR 5500-C/R. OPEN TO PUBLIC
-------------- Insurance companies are required to provide this information INSPECTION
Pension Benefit Guaranty Corporation As per ERISA section 103(a)(2).
- ------------------------------------------------------------------------------------------------------------------------------------
For calendar year 1997 or fiscal plan year beginning March 1, 1997, and ending February 28, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PART I MUST BE COMPLETED FOR ALL PLANS REQUIRED TO FILE THIS SCHEDULE.
ENTER MASTER TRUST OR 103-13 IE NAME IN PLACE
PART II MUST BE COMPLETED FOR ALL INSURED PENSION LOANS. OF "SPONSOR" AND SPECIFY INVESTMENT ACCOUNT OR
103-12 IE IN PLACE OF "PLAN" IF FILING WITH DOL
PART III MUST BE COMPLETED FOR ALL INSURED WELFARE PLANS. FOR A MASTER TRUST OR 103-12 IE.
- ------------------------------------------------------------------------------------------------------------------------------------
Named of plan sponsor as shown on line 1a of Form 5500 or 5500-C/R EMPLOYER IDENTIFICATION NUMBER
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. 84 0910696
- ------------------------------------------------------------------------------------------------------------------------------------
Name of plan ROCKY MOUNTAIN CHOCOLATE Three-digit
FACTORY, INC. 401(K) PLAN plan number 0 0 1
- ------------------------------------------------------------------------------------------------------------------------------------
PART I SUMMARY OF ALL INSURANCE CONTRACTS INCLUDED IN PARTS II AND III
Group all contracts in the same manner as in Parts II and III.
- ------------------------------------------------------------------------------------------------------------------------------------
1 Check appropriate box: a / / Welfare plan b /X/ Pension plan c / / Combination pension and welfare plan
- ------------------------------------------------------------------------------------------------------------------------------------
2 Coverage: (b) Contract (c) Approximate number Policy or contract year
(a) Name of insurance carrier or identification of persons covered at end -----------------------
number of policy or contract year (d) From (e) To
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL LIFE INSURANCE COMPANY 4-12731 112 03/01/97 02/28/98
- ------------------------------------------------------------------------------------------------------------------------------------
3 Insurance fees and commissions paid to agents and brokers: (d) Fees paid
(a) Contract or (b) Name and address of the agents or brokers to (c) Amount of ---------------------------------
identification number whom commissions or fees were paid commissions paid Amount Purpose
- ------------------------------------------------------------------------------------------------------------------------------------
4-12731 JOHNSON & HIGGINS OF COLORA 2,346
1225 17TH ST STE 2100 48 - PRORATED INCENTIVE
DENVER CO 80202-5534 AMOUNT NOT CHARGED
TO YOUR PLAN
4-12731 J & H MARSH & MCLENNAN INC 413
1255 17TH ST STE 2100
DENVER CO 80202-1501
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL 2,759 48
- ------------------------------------------------------------------------------------------------------------------------------------
4 Premiums due and unpaid at end of the plan year $ : Contract or identification number 4-12731
- ------------------------------------------------------------------------------------------------------------------------------------
PART II INSURED PENSION PLANS Provide information for each contract on a separate Part II. Where individual contracts are
provided, the entire group of such individual contracts with each carrier may be treated as a unit for purposes of this
report.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract or identification number 4-12731
- ------------------------------------------------------------------------------------------------------------------------------------
5 Contracts with allocated funds, (for example, individual policies or group deferred annuity contracts):
a State the basis of premium rates
-----------------------------------------------------------------------------------------
b Total premiums paid to carrier ..................................................................... 0
--------------
c If the carrier, service, or other organization incurred any specific costs in connection with the acquisition
or retention of the contract or policy, other than reported in 3 above, enter amount ..................
Specify nature of costs --------------
- ------------------------------------------------------------------------------------------------------------------------------------
6 Contracts with unallocated funds, (for example, deposit administration or immediate participation guarantee
contracts). Do not include portions of these contracts maintained in separate accounts:
a Balance at the end of the previous policy year ........................................................ 37,914
--------------
b Additions: (i) Contributions deposited during year ................................. 19,423
-----------------
(ii) Dividends and credits ........................................................ 0
-----------------
(iii) Interest credited during the year ............................................ 2,793
-----------------
(iv) Transferred from separate account ............................................ 0
-----------------
(v) Other (specify) Mkt Value Change 87
------------------------------------------------------------- -----------------
(vi) Total additions ................................................................................. 22,303
--------------
c Total or balance and additions (add a and b (vi)) ..................................................... 60,217
--------------
d Deductions:
(i) Disbursed from fund to pay benefits or purchase annuities during year ........ 4,220
-----------------
(ii) Administration charge made by carrier ........................................ 3
-----------------
(iii) Transferred to separate account .............................................. 1,287
-----------------
(iv) Other (specify) .............................................................. 0
-----------------
(v) Total deductions ................................................................................ 5,510
--------------
e Balance at end of the current policy year (subtract d(v) from c) ...................................... 54,707
--------------
- ------------------------------------------------------------------------------------------------------------------------------------
7 Separate accounts: Current value of plan's interest in separate accounts at year end .................... 318,656
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<S><C>
Schedule A (Form 5500) 1997 Page 2
- ------------------------------------------------------------------------------------------------------------------------------------
PART III INSURED WELFARE PLANS
PROVIDE INFORMATION FOR EACH CONTRACT ON A SEPARATE PART III. IF MORE THAN ONE CONTRACT COVERS THE SAME GROUP OF
EMPLOYEES OF THE SAME EMPLOYER(S) OR MEMBERS OF THE SAME EMPLOYEE ORGANIZATIONS(S), THE INFORMATION MAY BE COMBINED FOR
REPORTING PURPOSES IF SUCH CONTRACTS ARE EXPERIENCE-RATED AS A UNIT. WHERE INDIVIDUAL CONTRACTS ARE PROVIDED, THE
ENTIRE GROUP OF SUCH INDIVIDUAL CONTRACTS WITH EACH CARRIER MAY BE TREATED AS A UNIT FOR PURPOSES OF THIS REPORT.
- ------------------------------------------------------------------------------------------------------------------------------------
8 (a) Contract or (b) Type of (c) List gross premium (d) Premium rate or
identification number benefit for each contract subscription charge
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
9 Experience-rated contracts: a Premiums: (i) Amount received ...........................
-----------------
(ii) Increase (decrease) in amount due but unpaid .................................
-----------------
(iii) Increase (decrease) in unearned premium reserve ..............................
-----------------
(iv) Premiums earned, add (i) and (ii), and subtract (iii) ..........................................
--------------
b Benefit charges: (i) Claims paid ...................................................
-----------------
(ii) Increase (decrease) in claim reserves ........................................
-----------------
(iii) Incurred claims (add (i) and (ii)) .............................................................
--------------
(iv) Claims charged .................................................................................
--------------
c Remainder of premium: (i) Retention charges (on an accrual basis)--
(A) Commissions ..............................................................
-----------------
(B) Administrative service or other fees .....................................
-----------------
(C) Other specific acquisition costs .........................................
-----------------
(D) Other expenses ...........................................................
-----------------
(E) Taxes ....................................................................
-----------------
(F) Charges for risks or contingencies .......................................
-----------------
(G) Other retention charges ..................................................
-----------------
(H) Total retention ..........................................................
-----------------
(ii) Dividends or retroactive rate refunds. (These amounts were / / paid in cash, or / / credited.)..
--------------
d Status of policyholder reserves at end of year: (i) Amount held to provide benefits after retirement...
--------------
(ii) Claim reserves .................................................................................
--------------
(iii) Other reserves .................................................................................
--------------
e Dividends or retroactive rate refunds due. (Do not include amount entered in c (ii).) ...............
- ------------------------------------------------------------------------------------------------------------------------------------
10 Nonexperience-rated contracts: a Total premiums or subscription charges paid to carrier ..................
--------------
b If the carrier, service, or other organization incurred any specific costs in connection with the
acquisition or retention of the contract or policy, other than reported in 3 above, report amount .....
--------------
Specify nature of costs ---------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
IF MORE SPACE IS REQUIRED FOR ANY ITEM, ATTACH ADDITIONAL SHEETS THE SAME SIZE AS THIS FORM.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
GENERAL INSTRUCTIONS
This schedule must be attached to Form 5500 or 5500-C/R for every defined
benefit, defined contribution, and welfare benefit plan where any benefits
under the plan are provided by an insurance company, insurance service, or
other similar organization.
SPECIFIC INSTRUCTIONS
Information entered on Scheduled A (Form 5500) should pertain to the insurance
contract or policy year ending with or within the loan year (for reporting
purposes, a year cannot exceed 12 months). For example, if an insurance
contract year begins on July 1 and ends on June 30, and the plan year begins
on January 1 and ends on December 31, the Schedule A information attached to
the 1997 Form 5500 should be for the insurance contract year ending on
June 30, 1997.
EXCEPTION: If the insurance company maintains record on the basis of a plan
year rather than a policy or contract year, the information entered on
Schedule A (Form 5500) may pertain to the plan year instead of the policy or
contract year.
Include only the contracts issued to the plan for which this
return/report is being filed.
PLANS PARTICIPATING IN MASTER TRUST(S) AND 103-12 IES.-- SEE INVESTMENT
ARRANGEMENTS FILING DIRECTLY WITH DOL on page 4 of the instructions for
Form 5500 or 5500-C/R.
LINE 2(c).-- Since the plan coverage may fluctuate during the year, the
administrator should estimate the number of persons that wee covered by the
plan at the end of the policy or contract year.
Where contracts covering individual employees are grouped, entries
should be determined as of the end of the plan year.
LINES 2(d) AND (e).-- Enter the beginning and ending dates of the policy year
for each contract listed under column (b). Enter "N/A" in column (d) if
separate contracts covering individual employees are grouped.
LINE 3.-- Report all sales commissions in column (c) regardless of the
identity of the recipient. Do not report override commissions, salaries,
bonuses, etc., paid to a general agent or manager for managing an agency, or
for performing other administrative functions.
Fees to be reported in column (d) represent payments by insurance
carriers to agents and brokers for items other than commissions (e.g.,
service fees, consulting fees, and finders fees).
NOTE: FOR PURPOSES OF THIS ITEM, COMMISSIONS AND FEES INCLUDE AMOUNTS PAID
BY AN INSURANCE COMPANY ON THE BASIS OF THE AGGREGATE VALUE (E.G, POLICY
AMOUNTS, PREMIUMS) OF CONTRACTS OR POLICIES (OR CLASSES THEREOF) PLACED OR
RETAINED. THE AMOUNT (OR PRO RATA SHARE OF THE TOTAL) OF SUCH COMMISSIONS OR
FEES ATTRIBUTABLE TO THE CONTRACT OR POLICY PLACED WITH OR RETAINED BY THE
PLAN MUST BE REPORTED IN COLUMN (c) OR (d), AS APPROPRIATE.
Fees paid by insurance carriers to persons other than agents and brokers
should be reported in Parts II and III on Schedule A (Form 5500) as
acquisition costs, administrative charges, etc., as appropriate. For plans
with 100 or more participants, fees paid by employee benefit plans to agents,
brokers, and other persons are to be reported on Schedule C (Form 5500).
LINE 5a.-- The rate information called for here may be furnished by attaching
the appropriate schedules of current rates filed with the appropriate state
insurance departments or by providing a statement regarding the basis of the
rates.
LINE 6.-- Show deposit fund amounts rather than experience credit records when
both are maintained.
LINE 8(d).-- The rate information called for here may be furnished by
attaching the appropriate schedules of current rates or a statement as to the
basis of the rates.
<PAGE>
- --------------------------------------------------------------------------------
CERTIFIED SCHEDULE A INFORMATION
Principal Life Insurance Company hereby certifies that the information on
the Schedule(s) A and supplements is complete and accurate to the best of our
knowledge.
/s/ Janet Hester
- -------------------------------------------------
Signature
8-27-98
- -------------------------------------------------
Date
[LOGO]
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S><C>
SCHEDULE C SERVICE PROVIDER AND TRUSTEE INFORMATION OMB NO. 1210-0016
(FORM 5500) THIS SCHEDULE IS REQUIRED TO BE FILED UNDER SECTION 104 OF THE ---------------------
Department of the Treasury EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.
Internal Revenue Service File as an attachment to Form 5500. 1997
--------------- Additional Schedules C (Form 5500) may be used, if needed, to
Department of Labor provide additional information for Parts I, II, and/or III. ---------------------
Pension and Welfare Benefits Administration THIS FORM IS
--------------- OPEN TO PUBLIC
Pension Benefit Guaranty Corporation INSPECTION
- ------------------------------------------------------------------------------------------------------------------------------------
For the calendar year 1997 or fiscal plan year beginning March 1, 1997, and ending February 28, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Name of plan sponsor as shown on line 1a of Form 5500 EMPLOYER IDENTIFICATION NUMBER
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. 84 0910696
- ------------------------------------------------------------------------------------------------------------------------------------
Name of plan ROCKY MOUNTAIN CHOCOLATE Three-digit
FACTORY, INC. 401(K) PLAN plan number 0 0 1
- ------------------------------------------------------------------------------------------------------------------------------------
PART I SERVICE PROVIDER INFORMATION (SEE INSTRUCTIONS)
- ------------------------------------------------------------------------------------------------------------------------------------
1 Enter the total dollar amount of compensation paid by the plan to all persons receiving less than
$5,000 during the plan year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 $3
- ------------------------------------------------------------------------------------------------------------------------------------
2 (d) Relationship to
(b) Employer (c) Official employer, employee (e) Gross salary (f) Fees and (g) Nature
(a) Name identification plan organization, or or allowances commissions paid of service
number (see position person known to be paid by plan by plan code (see
instructions) a party-in-interest instructions)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Contract
administrator 12
- ------------------------------------------------------------------------------------------------------------------------------------
(2)
- ------------------------------------------------------------------------------------------------------------------------------------
(3)
- ------------------------------------------------------------------------------------------------------------------------------------
(4)
- ------------------------------------------------------------------------------------------------------------------------------------
(5)
- ------------------------------------------------------------------------------------------------------------------------------------
(6)
- ------------------------------------------------------------------------------------------------------------------------------------
(7)
- ------------------------------------------------------------------------------------------------------------------------------------
(8)
- ------------------------------------------------------------------------------------------------------------------------------------
(9)
- ------------------------------------------------------------------------------------------------------------------------------------
(10)
- ------------------------------------------------------------------------------------------------------------------------------------
(11)
- ------------------------------------------------------------------------------------------------------------------------------------
(12)
- ------------------------------------------------------------------------------------------------------------------------------------
(13)
- ------------------------------------------------------------------------------------------------------------------------------------
(14)
- ------------------------------------------------------------------------------------------------------------------------------------
(15)
- ------------------------------------------------------------------------------------------------------------------------------------
(16)
- ------------------------------------------------------------------------------------------------------------------------------------
(17)
- ------------------------------------------------------------------------------------------------------------------------------------
(18)
- ------------------------------------------------------------------------------------------------------------------------------------
(19)
- ------------------------------------------------------------------------------------------------------------------------------------
(20)
- ------------------------------------------------------------------------------------------------------------------------------------
(21)
- ------------------------------------------------------------------------------------------------------------------------------------
(22)
- ------------------------------------------------------------------------------------------------------------------------------------
(23)
- ------------------------------------------------------------------------------------------------------------------------------------
(24)
- ------------------------------------------------------------------------------------------------------------------------------------
(25)
- ------------------------------------------------------------------------------------------------------------------------------------
(26)
- ------------------------------------------------------------------------------------------------------------------------------------
(27)
- ------------------------------------------------------------------------------------------------------------------------------------
(28)
- ------------------------------------------------------------------------------------------------------------------------------------
(29)
- ------------------------------------------------------------------------------------------------------------------------------------
(30)
- ------------------------------------------------------------------------------------------------------------------------------------
(31)
- ------------------------------------------------------------------------------------------------------------------------------------
(32)
- ------------------------------------------------------------------------------------------------------------------------------------
(33)
- ------------------------------------------------------------------------------------------------------------------------------------
(34)
- ------------------------------------------------------------------------------------------------------------------------------------
(35)
- ------------------------------------------------------------------------------------------------------------------------------------
(36)
- ------------------------------------------------------------------------------------------------------------------------------------
(37)
- ------------------------------------------------------------------------------------------------------------------------------------
(38)
- ------------------------------------------------------------------------------------------------------------------------------------
(39)
- ------------------------------------------------------------------------------------------------------------------------------------
(40)
- ------------------------------------------------------------------------------------------------------------------------------------
FOR PAPERWORK REDUCTION ACT NOTICE, SEE THE INSTRUCTIONS FOR FORM 5500. Cat. No. 13515E SCHEDULE C (FORM 5500) 1997
</TABLE>
<PAGE>
<TABLE>
<S><C>
Schedule C (Form 5500) 1997 Page 2
- ------------------------------------------------------------------------------------------------------------------------------------
PART II TRUSTEE INFORMATION Enter the name and address of all trustees who served during the plan year. If more space is
required to supply this information, attach additional Schedules C (Form 5500).
- ------------------------------------------------------------------------------------------------------------------------------------
Name BANKERS TRUST Name
------------------------------------------------------------ ----------------------------------------------------------
Address DES MOINES, IA Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Name Name
------------------------------------------------------------ ----------------------------------------------------------
Address Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Name Name
------------------------------------------------------------ ----------------------------------------------------------
Address Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Name Name
------------------------------------------------------------ ----------------------------------------------------------
Address Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Name Name
------------------------------------------------------------ ----------------------------------------------------------
Address Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Name Name
------------------------------------------------------------ ----------------------------------------------------------
Address Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Name Name
------------------------------------------------------------ ----------------------------------------------------------
Address Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Name Name
------------------------------------------------------------ ----------------------------------------------------------
Address Address
------------------------------------------------------------ -------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PART III TERMINATION INFORMATION (SEE INSTRUCTIONS)
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Name (b) EIN (c) Position (d) Address (e) Telephone No.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Explanation:
------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Name (b) EIN (c) Position (d) Address (e) Telephone No.
- ------------------------------------------------------------------------------------------------------------------------------------
(2) Explanation:
------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Name (b) EIN (c) Position (d) Address (e) Telephone No.
- ------------------------------------------------------------------------------------------------------------------------------------
(3) Explanation:
------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Schedule C (Form 5500) 1997 Page 3
- -------------------------------------------------------------------------------
PART I--SERVICE PROVIDER INFORMATION
GENERAL INSTRUCTIONS
Item 1 of Part I must be completed by all Form 5500 filers required to
complete item 2.
Item 2 of Part I must be completed to report all persons receiving, directly
or indirectly, $5,000 or more in compensation for all services rendered to
the plan during the plan year except:
1. Employees of the plan whose only compensation in relation to the plan
was less than $1,000 for each month of employment during the pan year,
2. Employees of the plan sponsor who did not receive direct or indirect
compensation from the plan,
3. Employees of a business entity (e.g., corporation, partnership, ect.),
other than the plan sponsor, who provided services to the plan, or
4. Persons whose only compensation in relation to the plan consists of
insurance fees and commissions listed in Schedule A (Form 5500).
Generally, indirect compensation would not include compensation that
would have been received had the service not been rendered and that cannot be
reasonably allocated to the services performed. Indirect compensation
includes, among other things, the payment of "finders' fees" or other fees
and commissions by a service provider to an independent agent or employee for
a transaction or service involving the plan.
NOTE: THE COMPENSATION LISTED SHOULD ONLY REFLECT THE AMOUNT OF COMPENSATION
RECEIVED BY THE SERVICE PROVIDER FROM THE PLAN FILING THE SCHEDULE C (FORM
5500), NOT THE AGGREGATE AMOUNT RECEIVED BY THE SERVICE PROVIDER FOR PROVIDING
SERVICES TO SEVERAL PLANS.
SPECIFIC INSTRUCTIONS
ITEM 1
Enter the total dollar amount of compensation received by all persons who
provided services to the plan who are not listed in item 2 (except for those
persons described in 2, 3, or 4 in the General Instructions).
EXAMPLE: A plan had four service providers, A, B, C, and D, who received
$12,000, $6,000, $4,500 and $430, respectively, from the plan. Service
providers A and B must be identified on separate lines in item 2 by name,
EIN, official plan position, ect. As service providers C and D each received
less than $5,000, the amounts they received must be combined and $4,930
entered in item 1.
ITEM 2
On line (1), include any individual, trade or business, (whether
incorporated or unincorporated) responsible for managing the clerical
operations (e.g., handling membership rosters, claims payments, maintaining
books and records) of the plan on a contractual basis, that is required to be
reported in item 2, except for salaried staff or employees of the plan or
banks or insurance carriers.
On the remaining lines ((2) through (40)) and additional Schedules C
(Form 5500) if needed, list all other persons required to be reported in item
2 who provided services to the plan in the order of compensation received,
starting with the most highly compensated and ending with the lowest
compensated.
COLUMN (b).--An EIN must be entered in column (b). If an individual is listed
in column (a), the EIN to be entered in column (b) should be the EIN of the
individual's employer.
COLUMN (c).--For example, employee, trustee, accountant, attorney, etc.
COLUMN (d).--For example, employee, vice-president, union president, etc.
COLUMNS (e) AND (f).--Include the plan's share of amounts of compensation for
services paid during the year to a master trust or 103-12 IE trustee, and to
persons providing services to the master trust or 103-12 IE, if such
compensation is not subtracted from the gross income of the master trust or
103-12 IE in determining the net investment gain (or loss). Amounts of
compensation subtracted from gross income in determining the net investment
gain (or loss) of the master trust or 103-12 IE must be included as part of
the report of the master trust or 103-12 IE filed with DOL.
Include brokerage commissions or fees only if the broker is grated some
discretion (see 29 CFR 2510.3-21, paragraph (d), regarding "discretion").
Include all other commissions and fees on investments, whether or not they
are capitalized as investment costs.
COLUMN (g).--From the list below, select the code that best describes the
nature of services provided to the plan, and enter the number. If more than
one service was provided, enter only the code of the primary service.
<TABLE>
<CAPTION>
CODE SERVICE
<S> <C>
10 Accounting (including auditing)
11 Actuarial
12 Contract administrator
13 Administration
14 Brokerage (real estate)
15 Brokerage (stocks, bonds, commodities)
16 Computing, tabulating, ADP, ect.
17 Consulting (general)
18 Custodial (securities)
19 Insurance agents and brokers
20 Investment advisory
21 Investment management
22 Legal
23 Printing and duplicating
24 Recordkeeping
25 Trustee (individual)
26 Trustee (corporate)
27 Pension insurance adviser
28 Valuation services (appraisals, asset valuations, ect.)
29 Investment evaluations
30 Medical
31 Legal services to participants
99 Other (specify)
</TABLE>
NOTE: DO NOT LIST PBGC OR IRS AS A SERVICE PROVIDER ON PART I OF SCHEDULE C
(FORM 5500).
PART III--TERMINATION INFORMATION
Explain the reason for the change in appointment and provide the name, EIN
position, address, and telephone number of the persons(s) listed in item 25d
of Form 5500 whose appointment has been terminated. List them in the order of
the boxes that are checked in item 25d, (i.e., accountants first, enrolled
actuaries next, ect.). Include in this explanation a description of any
disagreement for which item 25e of the Form 5500 is marked "Yes," even if the
disagreement was resolved prior to the termination. If an individual is
listed, the EIN to be entered should be the EIN of the individual's employer.
Use additional Schedules C (Form 5500), if needed, to list additional
persons.
<PAGE>
<TABLE>
<S><C>
SCHEDULE G FINANCIAL SCHEDULES OMB NO. 1210-0016
(FORM 5500) ------------------
This schedule may be filed as an attachment to the Annual 1997
Department of the Treasury Return/Report Form 5500 under Section 104 of the Employee ------------------
Internal Revenue Service Retirement Income Security Act of 1974, referred to as ERISA.
THIS FORM IS
----------- SEE THE INSTRUCTIONS FOR ITEM 27 OF THE FORM 5500. OPEN TO PUBLIC
INSPECTION
Department of Labor ATTACH TO FORM 5500.
Pension and Welfare Benefits Administration
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For calendar plan year 1997 or fiscal plan year beginning March 1, 1997, and ending February 28, 1998
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Name of plan sponsor as shown on line 1a of Form 5500 EMPLOYER IDENTIFICATION NUMBER
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. 84 0910696
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Name of plan ROCKY MOUNTAIN CHOCOLATE Three-digit
FACTORY, INC. 401(K) PLAN plan number 0 0 1
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PART I SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES--SEE FORM 5500, ITEM 27a.
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(c)
(a) (b) DESCRIPTION OF INVESTMENT INCLUDING (d) (e)
IDENTITY OF ISSUE, BORROWER, MATURITY DATE, RATE OF INTEREST, COST CURRENT VALUE
LESSOR, OR SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE
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FOR PAPERWORK REDUCTION ACT NOTICE, SEE THE INSTRUCTIONS FOR FORM 5500. Cat. No. 14739A SCHEDULE G (FORM 5500) 1997
</TABLE>
<PAGE>
<TABLE>
<S><C>
Schedule G (Form 5500) 1997 Page 2
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Part II SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR--SEE
FORM 5500, ITEM 27a.
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(a) (b)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, (c) (d)
LESSOR, OR SIMILAR PARTY RATE OF INTEREST, COLLATERAL, PAR OR MATURITY VALUE COSTS OF ACQUISITIONS PROCEEDS OF DISPOSITIONS
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Part III SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS--SEE FORM 5500, ITEM 27b
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AMOUNT RECEIVED (g)
(b) (c) DURING REPORTING YEAR (f) DETAILED DESCRIPTION OF LOAN INCLUDING AMOUNT OVERDUE
(a) IDENTITY AND ORIGINAL --------------------- UNPAID DATES OF MAKING AND MATURITY, INTEREST -------------------
ADDRESS OF OBLIGOR AMOUNT OF BALANCE AT RATE, THE TYPE AND VALUE OF COLLATERAL,
LOAN (d) (e) END OF YEAR ANY RENEGOTIATION OF THE LOAN AND THE (h) (i)
PRINCIPAL INTEREST TERMS OF THE RENEGOTIATION AND OTHER PRINCIPAL INTEREST
MATERIAL ITEMS
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<TABLE>
<S><C>
Schedule G (Form 5500) 1997 Page 3
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PART IV SCHEDULE OF LEASES IN DEFAULT OR CLASSIFIED AS UNCOLLECTIBLE--SEE FORM 5500, 27c
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(d)
TERMS AND
DESCRIPTION (TYPE OF
(c) PROPERTY, LOCATION (f) (g) (h)
(b) RELATIONSHIP TO PLAN, AND DATE IT WAS (e) CURRENT GROSS RENTAL EXPENSES (i) (j)
(a) IDENTITY OF EMPLOYER, EMPLOYEE, PURCHASED, TERMS ORIGINAL VALUE AT RECEIPTS PAID DURING NET AMOUNT IN
LESSOR/LESSEE ORGANIZATION, OR REGARDING RENT, COST TIME OF DURING THE THE PLAN RECEIPTS ARREARS
OTHER TAXES, INSURANCE, LEASE PLAN YEAR YEAR
PARTY-IN-INTEREST REPAIRS, EXPENSES,
RENEWAL OPTIONS, DATE
PROPERTY WAS LEASED)
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PART V SCHEDULE OF REPORTABLE TRANSACTIONS--SEE FORM 5500, LINE 27d.
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(b) (f) (h)
(a) DESCRIPTION OF ASSET (c) (d) (e) EXPENSE (g) CURRENT VALUE (i)
IDENTITY OF (INCLUDE INTEREST RATE AND PURCHASE SELLING LEASE INCURRED COST OF OF ASSET ON NET GAIN
PARTY INVOLVED MATURITY IN CASE OF A LOAN) PRICE PRICE RENTAL WITH ASSET TRANSACTION OR (LOSS)
TRANSACTION DATE
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<TABLE>
<S><C>
Schedule G (Form 5500) 1997 Page 4
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PART VI SCHEDULE OF NONEXEMPT TRANSACTIONS--SEE FORM 5500, ITEM 27e
If a nonexempt prohibited transaction occurred with respect to a disqualified person, file Form 5330 with the IRS to pay the
excise tax on the transaction.
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(g)
(b) (c) EXPENSES
(a) RELATIONSHIP TO DESCRIPTION OF INCURRED IN (i) (j)
IDENTITY OF PLAN, EMPLOYER TRANSACTIONS (d) (e) (f) CONNECTION (h) CURRENT NET GAIN OR
PARTY OR OTHER INCLUDING MATURITY PURCHASE SELLING LEASE WITH COST OF VALUE OF (LOSS) ON
INVOLVED PARTY-IN-INTEREST DATE, RATE OF PRICE PRICE RENTAL TRANSACTION ASSET ASSET EACH
INTEREST, COLLATERAL, TRANSACTION
PAR OR MATURITY VALUE
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PART VII SCHEDULE OF NONEXEMPT TRANSACTIONS--SEE FORM 5500, ITEM 27f.
If a nonexempt prohibited transaction occurred with respect to a disqualified person, file Form 5330 with the IRS to pay the
excise tax on the transaction.
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(g)
(b) (c) EXPENSES
(a) RELATIONSHIP TO DESCRIPTION OF INCURRED IN (i) (j)
IDENTITY OF PLAN, EMPLOYER TRANSACTIONS (d) (e) (f) CONNECTION (h) CURRENT NET GAIN OR
PARTY OR OTHER INCLUDING MATURITY PURCHASE SELLING LEASE WITH COST OF VALUE OF (LOSS) ON
INVOLVED PARTY-IN-INTEREST DATE, RATE OF PRICE PRICE RENTAL TRANSACTION ASSET ASSET EACH
INTEREST, COLLATERAL TRANSACTION
PAR OR MATURITY VALUE
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<TABLE>
<S><C>
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES--SEE FORM 5500 ITEM 27a
ROCKY MOUNTAIN CHOCOLATE
FACTORY, INC. 401(K) PLAN
EIN 84 0910696
PLAN NUMBER 001
PLAN YEAR 03/01/1997 TO 02/28/1998
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(A) (B) (C) (D) (E)
IDENTITY OF ISSUER, DESCRIPTION OF INVESTMENT INCLUDING COST CURRENT VALUE
BORROWER, LESSOR OR MATURITY DATE, RATE OF INTEREST, COLLATERAL,
SIMILAR PARTY. PAR OR MATURITY DATE.
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* Principal Life Insurance Company Guarantee Interest $ 54,707.12 $ 54,707.12
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Pooled Separate Account
* Principal Life Insurance Company Money Market $ 19,565.05 $ 21,325.66
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Pooled Separate Account
* Principal Life Insurance Company Government Securities $ 11,937.44 $ 13,460.60
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Pooled Separate Account
* Principal Life Insurance Company Bond and Mortgage $ 362.02 $ 375.81
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Pooled Separate Account
* Principal Life Insurance Company Bond Emphasis Balance $ 19,603.78 $ 24,732.49
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Pooled Separate Account
* Principal Life Insurance Company Stock Emphasis Balanced $ 33,177.88 $ 45,677.02
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Pooled Separate Account
* Principal Life Insurance Company Stock Index 500 $ 49,101.01 $ 71,043.17
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Pooled Separate Account
* Principal Life Insurance Company U.S. Stock $ 23,648.03 $ 26,940.50
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Pooled Separate Account
* Principal Life Insurance Company Medium Company Value $ 5,038.13 $ 6,011.14
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Pooled Separate Account
* Principal Life Insurance Company Medium Company Blend $ 13,364.11 $ 15,266.98
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Pooled Separate Account
* Principal Life Insurance Company Small Company Blend $ 60,673.05 $ 84,721.75
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Pooled Separate Account
* Principal Life Insurance Company International Stock $ 6,112.12 $ 6,686.30
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Pooled Separate Account
* Principal Life Insurance Company Real Estate $ 2,290.89 $ 2,414.11
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RMCF STOCK
* ROCKY MOUNTAIN CHOCOLATE FACTORY Employer Securities, Common $ 206,592.19 $ 118,302.23
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</TABLE>
<PAGE>
<TABLE>
<S><C>
SCHEDULE OF REPORTABLE TRANSACTIONS--SEE FORM 5500 LINE 27d*
ROCKY MOUNTAIN CHOCOLATE
FACTORY, INC. 401(K) PLAN
EIN 84 0910696
PLAN NUMBER 001
PLAN YEAR 03/01/1997 TO 02/28/1998
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DESCRIPTION OF ASSET (A) (B) (C) (D) (E)
TOTAL NUMBER TOTAL NUMBER TOTAL VALUE OF PURCHASES TOTAL VALUE OF SALES NET GAIN/(LOSS)
OF PURCHASES OF SALES
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<S> <C> <C> <C> <C> <C>
Guaranteed Interest 26 $19,435.19 $ 0.00
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Guaranteed Interest 10 $ 5,521.59 $ 0.00
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Pooled Separate Account
Stock Emphasis Balanced 27 $11,109.58 $ 0.00
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Pooled Separate Account
Stock Emphasis Balanced 10 $10,144.81 $ 2,359.44
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Pooled Separate Account
Stock Index 500 30 $27,668.59 $ 0.00
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Pooled Separate Account
Stock Index 500 7 $ 3,582.80 $ 1,097.73
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Pooled Separate Account
U.S. Stock 27 $20,607.83 $ 0.00
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Pooled Separate Account
U.S. Stock 2 $ 18.00 $ 1.32
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Pooled Separate Account
Small Company Blend 28 $23,846.24 $ 0.00
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Pooled Separate Account
Small Company Blend 9 $ 5,690.43 $ 1,413.95
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RMCF STOCK
Employer Securities, Common 25 $52,435.85 $ 0.00
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RMCF STOCK
Employer Securities, Common 11 $ 2,136.99 $2,397.43-
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</TABLE>
* Schedule is prepared using the alternative way of reporting (iii) series
transactions under DOL Regulation 2520.103-6(d)(2).
<PAGE>
<TABLE>
<S><C>
SCHEDULE P ANNUAL RETURN OF FIDUCIARY OMB No. 1210-0016
(FORM 5500) OF EMPLOYEE BENEFIT TRUST --------------------
Department of the Treasury FILE AS AN ATTACHMENT TO FORM 5500, 5500-C/R, OR 5500-EZ. 1997
Internal Revenue Service FOR THE PAPERWORK REDUCTION NOTICE, SEE THE FORM 5500 INSTRUCTIONS. --------------------
This Form is Open to
Public Inspection
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For trust calendar year 1997
or fiscal year beginning March 1, 1997, and ending February 28, 1998.
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PLEASE TYPE OR PRINT
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1a Name of trustee or custodian
TRUSTEE OF ROCKY MOUNTAIN
CHOCOLATE FACTORY, INC.
401(K) PLAN
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b Number, street, and room or suite
no. (If a P.O. box, see the
instructions for Form 5500,
5500-C/R, or 5500-EZ.)
265 TURNER DRIVE
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c City or town, state, and ZIP code
DURANGO, CO 81301-7941
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2a Name of trust b Trust's employer identification number
TRUST FOR ROCKY MOUNTAIN CHOCOLATE
FACTORY, INC. 401(K) PLAN 42 0127290
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3 Name of plan if different from name
of trust
ROCKY MOUNTAIN CHOCOLATE
FACTORY, INC. 401(K) PLAN
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4 Have you furnished the participating
employee benefit plan(s) with the
trust financial information required
to be reported by the plan(s)? /X/ YES / / NO
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5 Enter the plan sponsor's employer
identification number as shown on
Form 5500, 5500-C/R, or 5500-EZ 84 0910696
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</TABLE>
Under penalties of perjury, I declare that I have examined this schedule, and
to the best of my knowledge and belief it is true, correct, and complete.
SIGNATURE OF FIDUCIARY DATE
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INSTRUCTIONS
SECTION REFERENCES ARE TO THE INTERNAL REVENUE CODE.
PURPOSE OF FORM
You may use this schedule to satisfy the requirements under section 6033(a)
for an annual information return from every section 401(a) organization
exempt from tax under section 501(a).
Filing this form will start the running of the statute of limitations
under section 6501(a) for any trust described in section 401(a), which is
exempt from tax under section 501(a).
WHO MAY FILE
1. Every trustee of a trust created as part of an employee benefit plan as
described in section 401(a).
2. Every custodian of a custodial account described in section 401(f).
HOW TO FILE
File Schedule P (Form 5500) for the trust year ending with or within any
participating plan's plan year. Attach it to the Form 5500, 5500-C/R, or
5500-EZ filed by the plan for that plan year. A separately filed Schedule P
(Form 5500) will not be accepted.
If the trust or custodial account is used by more than one plan, file
one Schedule P (Form 5500). If a plan uses more than one trust or custodial
account for its funds, file one Schedule P (Form 5500) for each trust or
custodial account.
TRUST'S EMPLOYER IDENTIFICATION NUMBER
Enter the trust employer identification number (EIN) assigned to the employee
benefit trust or custodial account, if one has been issued to you. The trust
EIN should be used for transactions conducted for the trust. If you do not
have a trust EIN, enter the EIN you would use on Form 1099-R to report
distributions from employee benefit plans and on Form 945 to report withheld
amounts of income tax from those payments.
NOTE: TRUSTEES WHO DO NOT HAVE AN EIN MAY APPLY FOR ONE ON FORM SS-4,
APPLICATION FOR EMPLOYER IDENTIFICATION NUMBER. YOU MUST BE CONSISTENT AND
USE THE SAME EIN FOR ALL TRUST REPORTING PURPOSES.
SIGNATURE
The fiduciary (trustee or custodian) must sign this schedule. If there is
more than one fiduciary, the fiduciary authorized by the others may sign.
OTHER RETURNS AND FORMS THAT MAY BE REQUIRED
- - FORM 990-T--For trusts described in section 401(a), a tax is imposed on
income derived from business that is unrelated to the purpose for which the
trust received a tax exemption. Report this income and tax on FORM 990-T,
Exempt Organization Business Income Tax Return. (See sections 511 through 514
and the related regulations.)
- - FORM 1099-R--If you made payments or distributions to individual
beneficiaries of a plan, report those payments on Form 1099-R. (See the
instructions for Forms 1099, 1098, 5498, and W-2G.)
- - FORM 945--If you made payments or distributions to individual beneficiaries
of a plan, you may be required to withhold income tax from those payments.
Use FORM 945, Annual Return of Withheld Federal Income Tax, to report taxes
withheld from nonpayroll items. (See CIRCULAR E, Employer's Tax Guide (Pub.
15), for more information.)
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SCHEDULE P (FORM 5500) 1997
