SCHEDULE 14A
(RULE(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE
SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )_X_ Filed by the registrant [X]Registrant
____ Filed by a partyParty other than the registrant [ ]Registrant
Check the appropriate box:
[ ]_____ Preliminary proxy statement
[X] Definitive proxy statement
[ ] Definitive additional materials
[ ] Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
[ ]Proxy Statement
_____ Confidential, for Use of the Commission Only (as
permitted by Rule 14a-6(e)(2))
__X__ Definitive Proxy Statement
_____ Definitive Additional Materials
_____ Soliciting Material Pursuant to 240.14a-11c or
240.14a-12
DEVELOPED TECHNOLOGY RESOURCE, INC., A MINNESOTA CORPORATION
- --------------------------------------------------------------------------------
(Name of Registrant as Specified inIn Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X]
__X__ No fee required
[ ]required.
_____ Fee computed on table below per Exchange Act Rules
14a-6(i)(4) and 0-11.
(1)O-11.
1. Title of each class of securities to which transaction
applies:
(2)2. Aggregate number of securities to which transactionstransaction applies:
(3)3. Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11. (Set0-11 (set forth the amount
on which the filing fee is calculated and state how it was
determined.)
(4)determined):
4. Proposed maximum aggregate value of transaction:
(5)5. Total fee paid:
[ ]_____ Fee paid previously with preliminary materials.
[ ]_____ Check box if any part of the fee is offset as provided
by Exchange Act Rule 0-11(a)(2) and identify the filing
for which the offsetting fee was paid previously. Identify
the previous filing by registration statement number, or the
Form or Schedule and the date of its filing.
(1)1. Amount previously paid:
(2)Previously Paid:
2. Form, Schedule or Registration Statement No.:
(3)3. Filing party:
(4)Party:
4. Date filed:Filed:
DEVELOPED TECHNOLOGY RESOURCE, INC.
7300 METRO BLVD.Metro Blvd., SUITESuite 550
EDINA, MINNESOTAEdina, Minnesota 55439
(PH:(ph: 612-820-0022)
---------------------_____________________
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD APRIL 14, 1998To Be Held November 18, 1999
To the Shareholders of
Developed Technology Resource, Inc.
The Annual Meeting of the Shareholders of Developed
Technology Resource, Inc. (the "Company" or "DTR"), will be held
on Tuesday, April 14,
1998,Thursday, November 18, 1999, at 3:30 p.m.10:00 a.m. CST, at the Minneapolis Athletic Club, 615 Second Avenue
South, Minneapolis,One
Corporate Center, 7300 Metro Boulevard, Suite 160, Edina,
Minnesota 55402,55439, for the following purposes:
1. To elect three directors of the Company.
2. To ratify the appointment of Deloitte & Touche LLP as independent
auditors.
3. To transact such other business as may properly come before
the meeting or any adjournments thereof.
The Board of Directors has fixed the close of business on
February 13,
1998,September 8, 1999, as the record date for the determination of
shareholders entitled to vote at the Annual Meeting and to
receive notice thereof. The transfer books of the Company will
not be closed.
A PROXY STATEMENT AND FORM OF PROXY ARE ENCLOSED.
SHAREHOLDERS ARE REQUESTED TO SIGN, DATE AND RETURN THE ENCLOSED
PROXY TO WHICH NO POSTAGE NEED BE AFFIXED IF MAILED IN THE
ENCLOSED ENVELOPE IN THE UNITED STATES. IT IS IMPORTANT THAT
PROXIES BE RETURNED PROMPTLY WHETHER OR NOT YOU EXPECT TO ATTEND
THE MEETING IN PERSON. SHAREHOLDERS WHO ATTEND THE MEETING MAY
REVOKE THEIR PROXIES AND VOTE IN PERSON IF THEY DESIRE.
By Order of the Board of Directors
/s/ LeAnn H. Davis
LeAnn H. Davis
Secretary and Chief Financial
Officer
Edina, Minnesota U.S.A.
March 17, 1998October 1, 1999
YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN
Please indicate your voting instructions on the enclosed
proxy, date and sign it, and return it in the envelope provided,
which is addressed for your convenience.
PLEASE MAIL YOUR PROXY PROMPTLY
DEVELOPED TECHNOLOGY RESOURCE, INC.
7300 METRO BLVD.Metro Blvd., SUITESuite 550
EDINA, MINNESOTAEdina, Minnesota 55439
TELEPHONETelephone (612) 820-0022
---------------------_____________________
PROXY STATEMENT
FOR THE ANNUAL MEETING OF SHAREHOLDERS
APRIL 14, 1998
---------------------for the Annual Meeting of Shareholders
November 18, 1999
_____________________
GENERAL INFORMATION
This proxy statement is furnished to shareholders by the
Board of Directors of Developed Technology Resource, Inc. (the
"Company") for solicitation of proxies for use at the Annual
Meeting of Shareholders to be held on Tuesday, April 14, 1998,Thursday, November 18,
1999, at 3:30 p.m.10:00 a.m. CST, at the Minneapolis Athletic Club,
615 Second Avenue South, Minneapolis,One Corporate Center, 7300 Metro
Boulevard, Suite 160, Edina, Minnesota 55402,55439, and at all
adjournments thereof, for the purposes set forth in the attached
Notice of Annual Meeting of Shareholders.
Shareholders may revoke proxies before exercise by
submitting a subsequently dated proxy or by voting in person at
the Annual Meeting. Unless a shareholder gives contrary
instructions on the proxy card, proxies will be voted at the
meeting to elect as directors the three nominees listed thereon.
This proxy statement and the enclosed proxy are being mailed to
the shareholders of Developed Technology Resource, Inc. on or
about March 17, 1998.October 15, 1999.
The Company will be providing without charge to each
stockholder a copy of Form 10-KSB for the fiscal year ended OctoberDecember 31,
1997,1998, including the financial statements and schedules thereto,
filed with the Securities and Exchange Commission, and this proxy
in March.September 1999. If a stockholder requests copies of any
exhibits of such Form 10-KSB, the Company may require the payment
of a fee covering its reasonable expenses. A written request
should be addressed to the Company at the address shown above.
The cost of soliciting proxies, including their preparation,
assembly, and mailing, will be borne by the Company. In addition
to the solicitation of proxies by use of the U.S. Postal Service,
certain officers and regular employees who will receive no extra
compensation for their services may solicit proxies in person or
by telephone or facsimile. The Company may reimburse brokerage
firms and others for expenses in forwarding solicitation
materials to the beneficial owners of Common Stock.
OUTSTANDING SHARES AND VOTING RIGHTS
At the close of business on February 13, 1998,August 9, 1999, there were
outstanding 805,820 shares of Common Stock, par value $.01 per
share, which is the only outstanding class of stock of the
Company. Each share is entitled to one vote. As provided in the
Articles of Incorporation of the Company, there is no right of
cumulative voting. All matters being voted upon by the
shareholders require a majority vote of the shares represented at
the Annual Meeting either in person or by proxy.
The presence at the Annual Meeting in person or by proxy of
the holders of a majority of the outstanding shares of the
Company's Common Stock entitled to vote constitutes a quorum for
the transaction of business. Shares voted as abstentions on any
matter (or a "withhold authority" vote as to directors) will be
counted as present and entitled to vote for purposes of
determining a quorum and for purposes of calculating the vote
with respect to such matter, but will not be
deemed to have been
voted in favor of such matter. If a broker submits a proxy that
indicates the broker does not have discretionary authority to
vote certain shares on a particular matter, those shares will be
counted as present for purposes of determining a quorum, but will
not be considered present and entitled to vote for purposes of
calculating the vote with respect to such matter.
PRINCIPAL SHAREHOLDERS AND
MANAGEMENT OWNERSHIP
The following table contains information as of February 13, 1998,August 9,
1999, concerning the beneficial ownership of the Company's Common
Stock by persons known to the Company to beneficially own more
than 5% of the Common Stock, by each director, by each executive
officer named in the Summary Compensation Table, and by all
current and nominated directors and executive officers as a
group. Shares reported as beneficially owned include those for
which the named persons may exercise voting power or investment
power, and all shares owned by persons having sole voting and
investment power over such shares unless otherwise noted. The
number of shares reported as beneficially owned by each person as
of February 13, 1998,August 9, 1999, includes the number of shares that such person
has the right to acquire within 60 days of that date, such as
through the exercise of stock options or warrants that are
exercisable within that period.
AMOUNT AND NATURE
NAME AND ADDRESS OF BENEFICIAL OWNER OF BENEFICIAL OWNER PERCENTAGE OWNED(A)
- ------------------------------------ ------------------- -----------------Amount and Nature
Name and Address of of Beneficial Owner Percentage
Beneficial Owner OwnedA
Vladimir Drits 71,33571,835 (1) 7.6%6.9%
11901 Meadow Lane West
Minnetonka, MN 55305
Erlan Sagadiev 55,000103,000 (2) 5.8%10.0%
7300 Metro Blvd, Suite 550
Edina, MN 55439
Roger W. Schnobrich (B) 30,700 (3) 3.3%B 35,700(3) 3.5%
222 South Ninth Street
Suite 3200
Minneapolis, MN 55402
John P. Hupp (B, C) 55,500B, C 104,300 (4) 5.9%10.1%
7300 Metro Blvd, Suite 550
Edina, MN 55439
Peter L. Hauser (B) 47,736B 41,000 (5) 5.1%4.0%
2820 IDS Tower
Minneapolis, MN 55402
Beneficial Owners of 5% or 355,835 34.5%
more, 260,271 27.5% Officers and
Directors as a group
All current directors and 181,000 17.6%
officers 133,936 14.2% as a group
(4(3 people)
(A)
A The total number of shares outstanding assuming the exercise
of all currently exercisable and vested options and warrants
held by all executive officers, current directors, and holders
of 5% or more of the Company's issued and outstanding Common
Stock is 944,3201,030,820 shares. Does not assume the exercise of any
other options or warrants.
(B)B Designates a Director of the Company.
(C)C Designates an Executive Officer of the Company.
(1) Includes 23,335 shares of Common Stock gifted by Mr. Drits
to his spouse and children.
(2) Includes presently exercisable options for the purchase of
55,000100,000 shares at $1.22 per share issued under terms of the 1992 Stock Option
Plan as Amended September 30, 1996.share.
(3) Includes presently exercisable options for the purchase of
15,000 shares at $1.50 per share.share and 5,000 shares at $3.00 issued
under the terms of the 1997 Outside Directors Stock Option Plan.
(4) Includes presently exercisable options for the purchase of
55,000100,000 shares at $1.22 per share issued under terms of the 1992 Stock Option
Plan as Amended September 30, 1996.share.
(5) Includes 4,2366,000 shares held in IRA for the benefit of Mr.
Hauser. Includes presently exercisable warrantsoptions for the purchase
of 13,5005,000 shares at $18 per share$3.00 issued in 1993 under the terms of the Company's
initial public offering.1997
Outside Directors Stock Option Plan.
ELECTION OF DIRECTORS
The Bylaws of the Company provide that the number of
directors shall be as fixed from time to time by resolution of
the shareholders, subject to increase by the Board of Directors.
The Board is authorized to fill vacancies resulting from
increases in the size of the Board or otherwise. Currently there
are three directors.
The Board of Directors has nominated for election the
Directors named below. Each of the nominees is currently a
director of the Company whose current term expires at the 1998
Annual Meeting. Unless authority is withheld, the proxies will
be voted FOR these nominees to serve as directors until the next
Annual Meeting of Shareholders and until their successors are
elected and have been qualified. If any one of the nominees is
unable to serve as a director by reason of death, incapacity or
other unexpected occurrence, the proxies will be voted for such
substitute nominee as is selected by the Board of Directors, but
in no event will proxies be voted for more than three nominees.
The Board of Directors is unaware of any reason why the nominees
would not be available for election or, if elected, would not be
able to serve.
OFFICERS AND DIRECTORSOfficers and Directors
The following table sets forth the current and proposed directors
and executive officers of the Company, their ages and positions
with the company as of February 13, 1998:
NAME AGE POSITION
---- --- --------August 9, 1999:
Name Age Position
Peter L. Hauser(1)(2) 5658 Director
Roger W. 69 Director
Schnobrich(1)(2) 68 Director
John P. Hupp 3840 Director, President
LeAnn H. Davis 2829 Chief Financial
Officer, Corporate
Secretary
(1) Member of the Compensation Committee.
(2) Member of the Audit Committee.
Pursuant to an Underwriting Agreement dated April 23, 1993,
between the Company and Equity Securities Trading Co., Inc.
("Equity Securities"), in connection with the Company's initial
public offering, the Company granted Equity Securities the right
until April 1998 to nominate one member who is reasonably
satisfactory to the Company for election to the Company's Board
of Directors. While maintaining the right to do so in the future, Equity Securities has notnever exercised itsthis right to
nominate a member to the board for this election.
Each nominee, if elected, will serve until the 1999 Annual
Meeting of Shareholders in the year 2000 and until a successor
has been elected and duly qualified or until the director's
earlier resignation or removal.
Mr. Hauser has been a director of the Company since October
1993. Since 1977, he has been employed by Equity Securities
Trading Co., Inc., a Minneapolis-based brokerage firm, and is
currently a vice president and principal.
Mr. Schnobrich has been a director of the Company since
October 1993. He is a partner with Hinshaw & Culbertson, a
Minneapolis law firm which serves as legal counsel to the
Company. Until 1997, he was an owner and attorney with Popham,
Haik, Schnobrich & Kaufman, Ltd., a Minneapolis-based law firm
which he co-founded in 1960. He also serves as a director of
Rochester Medical Corporation, a company that develops,
manufactures and markets improved, latex free, disposable
urological catheters.
Mr. Hupp has been the Company's President since June 1995,
and a director since April 1996. He was Corporate Secretary from
July 1994 until September 1997, and was Director of Legal Affairs
from July 1993 to June 1995. From June 1992 until June 1993, Mr.
Hupp was President of Magellan International Ltd., which marketed
on-line and hard copy information for a Russian information
company. From March to June 1992, he served as Of Counsel for
the law firm of Hale & Dorr, establishing the firm's Moscow
office. His work included negotiating and establishing joint
ventures for clients. From September 1990 to January 1992, Mr.
Hupp was Senior Project Manager and Corporate Counsel with
Management Partnership International, Ltd. (MPI). Prior to his
work at MPI, Mr. Hupp was a trial lawyer for the firmsfirm of
Bollinger & Ruberry and Pretzel & Stouffer in Chicago for six
years. Mr. Hupp received a J.D. Degree from the University of
Illinois College of Law and a B.A. degrees in Russian Area Studies
and Political Science. Mr. Hupp has intensive language training
from the Leningrad State University in St. Petersburg, Russia.
LeAnn H. Davis, CPA was employed by the Company as the
Controller on July 7, 1997 and on September 25, 1997 was named
Chief Financial Officer and Corporate Secretary. Prior to joining
the Company, Ms. Davis worked as CFO of Galaxy Foods Company in
Orlando, Florida from December 1995 to June 1997. From 1994 to
1995, she was a senior auditor for Coopers and Lybrand LLP in
Orlando, FL. From 1992 to 1994, she worked for the local public
accounting firm of Pricher and Company in Orlando as a senior
auditor and tax accountant. Prior to 1992, Ms. Davis worked for
Arthur Andersen LLP as a staff auditor. Ms. Davis earnedobtained a BS
in Business Administration and a BS in Accounting from Palm Beach
Atlantic College in West Palm Beach, Florida in May 1990, and a
Masters in Accounting from Florida State University, Tallahassee,
Florida in August 1991.
Each Executive Officer of the Company is elected or
appointed by the Board of Directors of the Company and holds
office until a successor is elected, or until the earlier of
death, resignation or removal.
To the knowledge of the Company, no executive officer or
director of the Company is a party adverse to the Company or has
material interest adverse to the Company in any legal proceeding.
The information given in this Proxy Statement concerning the
Directors is based upon statements made or confirmed to the
Company by or on behalf of such Directors, except to the extent
that such information appears in its records.
THE BOARD OF DIRECTORS RECOMMENDS A VOTEThe Board of Directors recommends a vote FOR EACH NOMINEE FOR ELECTION
TO THE BOARD OF DIRECTORS.
MEETINGS OF THE BOARD AND COMMITTEESeach nominee
for election to the Board of Directors.
Meetings of the Board and Committees
The Board of Directors held four formal meetings during fiscal 19971998
and adopted certain resolutions by written minutes of action. The
Board of Directors has two standing committees; an audit
committee and a compensation committee. All directors attended
all of the formal meetings. The Audit Committee is responsible
for reviewing the services rendered by the Company's independent
auditors and the accounting standards and principles followed by
the Company. The Audit Committee held one meeting during fiscal 1997,1998,
which was attended by all Committee members. The Compensation
Committee is responsible for making recommendations to the Board
of Directors regarding the salaries and compensation of the
Company's executive officers. The Compensation Committee met four
times during fiscal 1997.
CERTAIN TRANSACTIONS1998.
Certain Transactions
The law firm of Hinshaw & Culbertson provides legal services
to the Company. Roger Schnobrich, a director of the Company, is
a partner in the firm.
COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT
Section 16(a) of the Exchange Act requires the Company's
Officersofficers and Directors,directors, and persons who own more than 10 percent
of the registered class of the Company's equity securities to
file reports of ownership on Forms 3, 4, and 5 with the SEC.
Officers, Directorsdirectors and greater than 10 percent shareholders are
required by SEC regulation to furnish the Company with copies of
all Forms 3, 4, and 5 they file.
Based upon the Company's review of the copies of such forms
it has received from certain reporting persons that they were not
required to file Forms 5 furnishedfor the year ended December 31, 1998,
the Company believes that all of its executive officers,
directors and greater than 10% beneficial owners complied with
all filing requirements applicable to the Companythem with respect to
its fiscal year ended October 31, 1997, each of the following
directors, officers or beneficial owners of more than 10 percent of the
Company's Common Stock filed a Form 5 reporting previously unreported
transactions which were reportable, or previously unreported holdings which
became reportable, during such fiscal year: LeAnn H. Davis. This officer
reported the holdings which became reportable on or before December 15, 1997.1998.
COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS
The following table sets forth the cash and noncash
compensation for fiscalyear ended December 31, 1998, the two-month
transition period ended December 31, 1997, and the years ended
October 31, 1997 1996, and 19951996 awarded to or earned by the Chief
Executive Officer:
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION LONG-TERM
OTHER ANNUAL COMPENSATION
FISCAL YEAR SALARY BONUS COMPENSATION AWARDS/OPTIONS
NAME AND PRINCIPAL POSITION ENDED ($) ($) ($) (#)
- --------------------------- ----- -------- ----- ------------ --------------
John P. Hupp, President(1) 1997 $87,500 none none 0
1996 $75,000 none none 250,000(3)
1995 $65,967 none none 8,333(2)
Summary Compensation Table
Annual Compensation Long-Term
Other Compensation
Fiscal Salary Bonus Annual Awards/Options
Name and Principal Year Compens-
Position Ended __($)__ __($)__ ation($) _____(#)_____
John P. Hupp, 1998 $95,000 $16,000 none none
President(1)
2-month $15,000 none none none
1997
1997 $87,500 none none none
1996 $75,000 none none 250,000(2)
(1)Mr. Hupp became President on June 16, 1995. Beginning June
15, 1993, as the Company's Director of Legal Affairs, Mr.
Hupp began to receive a full-time salary of $5,000 per month.
Effective June 16, 1995, upon assuming the position of
President, his salary was increased to $6,250 per month.
Effective January 1997, his salary was increased to $7,500
per month; and effective October 1998, his salary was
increased to $9,167 per month.
(2) Mr. Hupp was issued an option for the purchase of 8,333 shares (adjusted
for stock split) on June 15 under terms of his employment agreement.
These options were replaced under the new employment agreement dated
September 30, 1996.
(3) Under the Amendment dated September 30, 1996 to the 1992
Stock Option Plan, Mr. Hupp was issued an option to purchase
250,000 shares.shares at an exercise price of $1.22. This amendment
was approved by the shareholders at the 1996 Annual Meeting.
AGGREGATED OPTION EXERCISES: LAST FISCAL YEAR AND FISCAL YEAR-END OPTION VALUESAggregated Option Exercises: Last Fiscal Year and Fiscal Year-End
Option Values
The following table summarizes for the named executive
officers the number of stock options exercised during the fiscal year
ended OctoberDecember 31, 1997,1998, the aggregate dollar value realized upon
exercise, the total number of unexercised options held at
OctoberDecember 31, 19971998 and the aggregate dollar value of in-the-money
unexercised options held at OctoberDecember 31, 1997.1998. Value realized
upon exercise is the difference between the fair market value of
the underlying stock on the exercise date and the exercise price
of the option. Value of Unexercised In-the-Money Options at fiscal year-endyear-
end is the difference between its exercise price and the fair
market value of the underlying stock on OctoberDecember 31, 19971998 which
was $2$3.34 per share.
AGGREGATED OPTION EXERCISES IN FISCALAggregated Option Exercises in Fiscal 1997 AND FISCAL YEAR-END OPTION VALUESand Fiscal Year-End Option Values
NUMBER OF VALUE OF UNEXERCISED
UNEXERCISED OPTIONS AT IN-THE-MONEY OPTIONS AT
NAME AND OCTOBERNumber of Value of Unexercised
Name and Shares Unexercised Options In-the-Money Options
Principal Acquired Value at December 31, 1997 (#) OCTOBER1998(#) at December 31, 1997 ($1998($)
PRINCIPAL SHARES ACQUIRED VALUE -------------------- --------------------
POSITION ON EXERCISE REALIZED EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
-------- ----------- -------- ----------- ------------- ----------- -------------Position on Exercise Realized Exercisable Unexercisable Exercisable Unexercisable
John P. Hupp(1), None None 55,000 200,000 $39,000 $156,000101,667 150,000 $212,000 $318,000
Hupp(1),
President
(1) Includes 250,000 options granted under September 30,
1996 employment agreement.
EMPLOYMENT AGREEMENTSEmployment Agreements
Mr. Hupp's original employment agreement dated June 1, 1995
was amended on September 30, 1996.1996 and then amended and restated
on October 1, 1998. The new employment agreement provides for
compensation of $110,000 per year and standard employee benefits
during the employment term expiring September 30, 2001. In
addition, Mr. Hupp or his successors will receive salary and
benefits for a lump sum
payment equal to 90 days salarytwelve-month period upon total death or disability
of Mr. Hupp or if the Company without cause terminates the Agreement.Agreement without
cause. Under terms of the Agreement, Mr. Hupp will devote his
best efforts to the performance of his duties, and agrees to
certain restrictions related to participation in activities felt
to conflict with the best interests of the Company.
In addition to cash compensation, Mr. Hupp's employment agreement also
provides for an incentive stock option to purchase 250,000 sharesCompensation of common
stock of the Company, par value one cent per share at the option price of $1.22
per share. 50,000 shares are exercisable per year commencing September 30, 1997.
The agreement also outlines the exercise of options upon termination of
employment and death. The incentive stock options that were awarded as part of
Mr. Hupp's previous employment agreement were cancelled.
COMPENSATION OF DIRECTORSDirectors
No director who is also an employee of the Company received
any separateadditional compensation for services as a director.
The non-employee directors of the Company include Messrs.
Hauser and Schnobrich. During fiscal 19971998, non-employee directors
received no cash compensation for their services as a director or
committee member. Mr. Schnobrich is an attorney with Hinshaw &
Culbertson, which serves as counsel for the Company and which
receives payment of legal fees for such services.
On November 6, 1997, the Board of Directors adopted a new stock option
plan for outside directors, superseding the then existing stock option plan. At
the same time the Board, in exchange for the surrender of all stock options
previously granted to the outside directors for their services as directors,
granted to the each outside director stock options for the purchase of 15,000
shares of common stock at a price of $1.50 per share, with 13,750 of the options
vested as of November 6, 1997, and 1,250 of the options to vest on December 31,
1997.
It is the Company's intention to issue to each outside
director an option for 5,000 shares of the Company's Common Stock
each year under terms of the 1997 Outside Director's Stock Option
Plan onupon their election to the Board forat the Company's
1998 annual
meeting. The option will vest at 1,250 shares onequally over the date of the
grant and each quarter thereafter.calendar year.
Options granted under the 1997 Outside Directors Stock
Option Plan are not intended to and do not qualify as incentive
stock options as described in Section 422 of the Internal Revenue
Code.
RELATIONSHIP OF INDEPENDENT PUBLIC ACCOUNTANTS
The Board of Directors selects the independent certified
public accountants for the Company each year. The Board of
Directors selectedelected to retain the firm of Deloitte & Touche LLP to
audit the Company's consolidated financial statements for the fiscalyear ended
December 31, 1998, for the two-month transition period ended
December 31, 1997, and for the year ended October 31, 1997.
RepresentativesDuring the audit of the Company's financial statements for
the year ended December 31, 1998, Deloitte & Touche LLP will attend the Annual
Meeting, may make a statement if they so desire, and will be available to
respond to appropriate questions. If possible, such questions should be
submitted in writing to the Company at least 10 days prior to the Annual
Meeting, at 7300 Metro Blvd, Suite 550, Edina, Minnesota 55439, Attention: Mr.
John P. Hupp, President.
On December 23, 1997, the Board of Directors dismissed the firm of
Lurie, Besikof, Lapidus & Co., LLP (hereinafter "Lurie, Besikof") as the
independent accountant to audit the Company's financial statements. Lurie,
Besikof's reportrelied on
the financial statements for the past year does not contain
an adverse opinion or disclaimer of opinion, and is not modifiedseveral foreign subsidiaries. Four
of these subsidiaries were audited by KPMG as to
uncertainty, audit scope, or accounting principles. In connection with its audit
for the most recent fiscal years and through December 23, 1997, there have been
no disagreements with Lurie, Besikof on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of Lurie,
Besikof would have caused them to make reference thereto in their report on the
financial statements for such years.
On December 23, 1997, Deloitte & Touche LLP was appointed as the
Company's new independent accountant to audit the Company's financial
statements. During the two most recent fiscal years and through December 23,
1997, thea first time audit.
The Company has not, prior to engaging the new accountant,
consulted the new accountant regarding the application of
accounting principles to a specific completed or contemplated
transaction, or regarding the type of audit opinion that might be
rendered on the Company's financial statements.
The Board of Directors has not yet selected its independent
auditors for the current year. They are in the process of
reviewing the firms that can plan and perform the audit work
necessary in all of its foreign locations. The Company plans to
select one firm to perform all of the audit work in order to
facilitate better efficiency in audit planning and performance
along with timely reporting.
OTHER BUSINESS
Management knows of no other matters that will be presented
for consideration at the meeting. If any other matter properly
comes before the meeting, proxies will be voted in accordance
with the best judgment of the person or persons acting under
them.
PROPOSALS FOR 19992000 ANNUAL MEETING
Shareholders who intend to submit proposals for inclusion in
the Company's 19992000 Proxy Statement and Proxy for shareholder
action at the 19992000 Annual Meeting must do so by sending the
proposal and supporting statements, if any, to the Company at its
corporate offices no later than December 5, 1998.March 29, 2000.
By Order of the Board of Directors
/s/ LeAnn H. Davis
LeAnn H. Davis
CHIEF FINANCIAL OFFICER AND SECRETARY
March 17, 1998Chief Financial Officer and
Secretary
October 1, 1999
DEVELOPED TECHNOLOGY RESOURCE, INC.
ANNUAL MEETING OF SHAREHOLDERSAnnual Meeting of Shareholders - APRIL 14, 1998November 18, 1999
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints John P. Hupp or his
appointee as proxy of the undersigned, with full power of
substitution, for and in the name of the undersigned, to
represent the undersigned at the Annual Meeting of Shareholders
of Developed Technology Resource, Inc., to be held at the Minneapolis Athletic
Club, 615 Second Avenue South, Minneapolis,One
Corporate Center, 7300 Metro Boulevard, Suite 160, Edina,
Minnesota 5540255439 at 3:30 p.m.10:00 a.m. CST on Tuesday, April 14, 1998,Thursday, November 18, 1999,
and at any adjournments thereof, and to vote all shares of stock
of said Company standing in the name of the undersigned, as
designated below, with all the powers which the undersigned would
possess if personally at such meetings.
1. Election of Directors duly nominated: Peter L. Hauser, John
P. Hupp, and Roger W. Schnobrich.
[ ]_____ FOR [ ]_____ WITHHELD FOR ALL [ ]_____ WITHHELD FOR THE
FOLLOWING ONLY
(Write the nominee's name in space below):
- --------------------------------------------------------------------------------
2. Ratification of the appointment of Deloitte & Touche LLP as independent
auditors for the current fiscal year.
[ ] FOR [ ] AGAINST
- --------------------------------------------------------------------------------
3. The authority of Directors to vote, in their discretion, on
all other business that may properly come before the meeting.
[ ]_____ GRANTED [ ]_____ WITHHELD
THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO INSTRUCTIONS ARE
GIVEN FOR VOTING ON THE MATTERS ABOVE, THIS PROXY WILL BE VOTED
FOR item 1, electing all duly nominated Directors as listed voted FOR item 2, approving the amendment,
and
GRANTED for item 3,2, granting the Directors authority to vote in
their discretion on all other business coming before the meeting.
Shareholders who are present at the meeting may withdraw their
Proxy and vote in person if they so desire. The undersigned has
received the proxy statement dated March 14, 1998.October 1, 1999.
Dated ________, 1998 __________________________ _______________________________________, 1999 _____________________ ________________
Signature Print Name
Dated ________, 1998 __________________________ _______________________________________, 199 _____________________ ________________
Signature Print Name
Please sign exactly as name(s) appear(s) on this Proxy. If
shares are registered in more than one name, the signatures of
all persons are required. A corporation should sign in its full
corporate name by a duly authorized officer, stating their title.
Trustees, guardians, executors and administrators should sign in
their official capacity, giving their full title as such. If a
partnership, please sign in partnership name by authorized
person.
Please check as appropriate:
[ ]__ I DO plan on attending the Annual Meeting of Shareholders.
[ ]__ I DO NOT plan on attending the Annual Meeting of Shareholders.
PLEASE SIGN, DATE AND RETURN THIS PROXY PROMPTLY
NO POSTAGE IS REQUIRED IF RETURNED
IN THE ENCLOSED ENVELOPE. THIS PROXY MAY
ALSO BE RETURNED VIA FACSIMILE TOThis Proxy may also be returned via facsimile to (612) 820-0011.