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SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE
SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )
Filed by the Registrant /X/[X]
Filed by a Party other than the Registrant / /[ ]
Check the appropriate box:
/ /[X] Preliminary Proxy Statement
/ /[ ] Confidential, for useUse of the Commission Only /X/(as permitted by
Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
/ /[ ] Definitive Additional Materials
/ /[ ] Soliciting Material Pursuant to sec.Section 240.14a-11(c) or sec.Section 240.14a-12
Dreyer's Grand Ice Cream, Inc.DREYER'S GRAND ICE CREAM, INC.
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(Name of Registrant as Specified in itsIn Its Charter)
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(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or
14a-6(i)(2) or Item 22(a)(2).
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ /[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
1)(1) Title of each class of securities to which transaction applies:
2)---------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
3)---------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:
4)0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
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[ ] Fee paid previously with preliminary materials.
/ /[ ] Check box if any part of the fee is offset as provided by Exchange Act
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[LOGO]
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Notice of AnnualLOGO
------------------------
NOTICE OF SPECIAL
MEETING OF STOCKHOLDERS
AND PROXY STATEMENT
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Meeting of Stockholders
and Proxy Statement
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Meeting of May 10, 1995October 23, 1997
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[LOGO]
To the Stockholders of Dreyer's Grand Ice Cream, Inc.
You are cordially invited to attend the AnnualSpecial Meeting of Stockholders of
Dreyer's Grand Ice Cream, Inc. (the "Company") that will be held at the Claremont Resort Hotel, Ashby and Domingo Avenues,offices
of the Company, 5929 College Avenue, Oakland, California 94618 on Wednesday, May 10, 1995Thursday,
October 23, 1997 at 2:00 p.m.
We hope you willThe Board of Directors approved, and recommends that the stockholders
of the Company approve, an amendment to the Company's Certificate of
Incorporation to increase the number of authorized shares of Common Stock,
$1.00 par value, from 30,000,000 to 60,000,000 and to effect a two-for-one
stock split of the Company's Common Stock, to be able to attend,
participateeffective at the close of
business on October 30, 1997.
Other than the stock split, the Company does not at present have any plans,
proposals or arrangements which would result in the issuance of any additional
shares of Common Stock, except issuances in connection with its stock option and
hear management's report to stockholders.employee stock plans, outstanding warrants and conversions of preferred stock.
On the following pages you will find a Notice of AnnualSpecial Meeting and Proxy
Statement. We suggest that you read the Proxy Statement carefully.
It is important that your shares be represented at the meeting regardless
of the size of your holding. Therefore, we urge you to SIGN, DATE and RETURN AS
SOON AS POSSIBLE the enclosed proxy card in the postage-paid envelope furnished
for that purpose. This should be done whether or not you now plan to attend the
meeting and to vote in person. A summary of the proceedings of the meeting will
be sent to all stockholders.
The Directors and Officers of the CompanyWe look forward to meeting with you.
T. GARY ROGERS WILLIAM F. CRONK, III
Chairman of the Board and President
Chief Executive Officer
Oakland, California
April 5, 1995September 16, 1997
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TABLE OF CONTENTS
PAGE
----
Notice of AnnualSpecial Meeting of Stockholders..............................................Stockholders............................................. 1
Proxy Statement....................................................................... 2
Introduction.......................................................................... 2
Annual Report....................................................................... 2
Solicitation by the Board of Directors; Revocation of Proxies....................... 2
Costs of Solicitation............................................................... 2
Voting of Board of Directors' Proxies............................................... 2
Shares Outstanding, Voting Rights and Record Date................................... 2
Security Ownership of Certain Beneficial Owners and Management........................ 3
Security Ownership of Certain Beneficial Owners..................................... 3
Security Ownership of Management.................................................... 4
Executive Compensation................................................................ 6
Summary of Cash and Certain Other Compensation...................................... 6
Stock Options....................................................................... 7
Performance Graph................................................................... 9
Employment Contracts, Employment Termination and Change-In-Control Arrangements..... 9
Remuneration of Directors........................................................... 10
Compensation Committee Interlocks and Insider Participation......................... 10
Compensation Committee Report on Executive Compensation............................. 11
Board of Directors.................................................................... 14
Committees of the Board............................................................. 14
Board of Directors Attendance....................................................... 14
Compliance with Section 16(a) of the Securities Exchange Act of 1934................ 15
Certain Transactions................................................................ 15
Matters5
Matter Submitted to thea Vote of Stockholders......................................... 16
ElectionStockholders............................................ 6
Amendment of Directors............................................................... 16
ApprovalCertificate of Independent Public Accountants.......................................... 17Incorporation to Increase the Number of Authorized
Shares of Common Stock and to Effect a Two-for-One Stock Split of Common Stock... 6
Voting Information.................................................................... 189
General Voting Information.......................................................... 189
Votes Required for Approval......................................................... 189
Proposals of Stockholders............................................................. 189
Other Matters......................................................................... 1910
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[LOGO]
NOTICE OF ANNUALSPECIAL MEETING OF STOCKHOLDERS
MAY 10, 1995
The AnnualOCTOBER 23, 1997
A Special Meeting of Stockholders of DREYER'S GRAND ICE CREAM, INC. will be
held on Wednesday, May 10, 1995Thursday, October 23, 1997 at 2:00 p.m. at the Claremont Resort Hotel,
Ashby and Domingo Avenues,offices of the Company,
5929 College Avenue, Oakland, California 94618 for the following purposes:
1. Electing three directorspurpose:
Approving an amendment to Class Ithe Company's Certificate of Incorporation to
increase the number of authorized shares of Common Stock from 30,000,000 to
60,000,000 and to effect a two-for-one stock split of the Board of Directors;
2. Approving the appointment of Price Waterhouse LLP as independent
public accountants for the fiscal year 1995 and thereafter until its
successor is appointed; and
3. Considering and acting upon suchCompany's Common
Stock.
No other business as may properly
come beforewill be transacted at the meeting or at any adjournment or postponement thereof.Special Meeting.
A complete list of the stockholders entitled to vote at the meeting,
including the address and number of shares registered in the name of each such
stockholder, will be open for examination by any such stockholder, for any
purpose germane to the meeting, at the Company's corporate office (5929 College
Avenue, Oakland, California) during ordinary business hours for ten10 days before
the date of the meeting. The list will also be available for inspection at the
meeting.
The close of business on March 24, 1995September 12, 1997 has been fixed as the record
date for the determination of stockholders entitled to notice of and to vote at
the meeting. The stock transfer books will not be closed.
EDMUNDEdmund R. MANWELLManwell
Secretary
April 5, 1995September 16, 1997
IT IS IMPORTANT THAT YOUR SHARES BE REPRESENTED AT THE MEETING. PLEASE
SIGN, DATE AND MAIL THE ENCLOSED PROXY IN THE ENCLOSED ENVELOPE, WHICH REQUIRES
NO POSTAGE. YOU MAY NEVERTHELESS VOTE IN PERSON IF YOU ATTEND THE MEETING.
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PROXY STATEMENT
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INTRODUCTION
This Proxy Statement is furnished to stockholders by the Board of Directors
of Dreyer's Grand Ice Cream, Inc., a Delaware corporation (the "Company"), in
connection with the solicitation of proxies for use at the AnnualSpecial Meeting of
Stockholders of the Company to be held on Wednesday, May 10, 1995Thursday, October 23, 1997 and at all
adjournments or postponements thereof. The mailing address of the Company is
5929 College Avenue, Oakland, California 94618, and its telephone number is
(510) 652-8187. The approximate date on which this Proxy Statement and the
enclosed form of proxy are to be sent to stockholders is on or about April 7,
1995.
ANNUAL REPORT
The Annual Report of the Company for the year ended December 31, 1994 is
furnished concurrently to all stockholders entitled to vote at the Annual
Meeting. The Annual Report is not to be regarded as proxy soliciting material or
as a communication by means of which any solicitation is to be made except to
the extent portions of the Annual Report are incorporated herein by reference.September
22, 1997.
SOLICITATION BY THE BOARD OF DIRECTORS; REVOCATION OF PROXIES
The proxy in the form enclosed is solicited by the Board of Directors. A
proxy may be revoked by the stockholder prior to exercise thereof by filing with
the Secretary of the Company a written revocation or a duly executed proxy
bearing a later date. The powers of the proxy holders will be suspended if the
person executing the proxy is present at the stockholders' meeting and elects to
vote in person.
COSTS OF SOLICITATION
The entire cost of soliciting these proxies will be borne by the Company.
The Company may make arrangements with brokerage houses, nominees, fiduciaries
and other custodians to send proxies and proxy materials to beneficial owners of
the Company's stock and may reimburse them for their expenses in so doing. The
Company has retained Skinner & Co. to assist in obtaining proxies from brokers
and nominees at an estimated cost of $3,500 plus out of pocketout-of-pocket expenses.
Proxies may be solicited by directors, officers and regular employees of
the Company personally or by telephone, facsimile or mail. These services will
be provided without additional compensation.
VOTING OF BOARD OF DIRECTORS' PROXIES
The shares represented by the Board of Directors' proxies will be voted FOR
the electionapproval of the Board of Directors' nominees for Class Iamendment of the BoardCompany's Certificate of Directors, FORIncorporation to
increase the approvalnumber of Price Waterhouse LLP as independent public
accountantsauthorized shares of Common Stock, $1.00 par value, from
30,000,000 to 60,000,000, and at the discretionto effect a two-for-one stock split of the
proxy holders on any other matters that
may properly come before the Annual Meeting, if no contrary instruction is
indicated on a proxy.Company's Common Stock.
SHARES OUTSTANDING, VOTING RIGHTS AND RECORD DATE
There were 13,928,947[13,448,780] shares of Common Stock ($1.00 par value) of the
Company, 1,007,522 shares of Series B Convertible Preferred Stock ($1.00 par
value) of the Company, no shares of Series A Convertible Preferred Stock ($1.00
par value) of the Company, and no shares of PreferredSeries A Participating Preference
Stock ($1.00 par value) of the Company outstanding at the close of business on
March 24, 1995.September 12, 1997. Each share of Common Stock is entitled to one vote at the
meeting. Each share of Series B Convertible Preferred Stock is entitled to vote
that number of votes equal to the number of shares of Common Stock into which
such share of Series B Convertible Preferred Stock is convertible on the record
date for the meeting. The outstanding shares of Series B Convertible Preferred
Stock are convertible into an aggregate of 2,900,003 shares of Common Stock on
September 12, 1997, based upon the stated value of $100 per share of Series B
Preferred Stock and the conversion price of $34.7421. There are no cumulative
voting rights.
Pursuant to the By-Laws of the Company, the Board of Directors has fixed
the close of business on March 24, 1995September 12, 1997 as the record date for the
determination of stockholders entitled to notice of and to vote at the meeting.
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
The following table sets forth information as of March 24, 1995September 10, 1997
concerning the beneficial ownership of Common Stock of the Company by each
person (including any "group" as that term is used in Section 13(d)(3) of the
Securities Exchange Act of 1934 (the "Exchange Act")) who is known to the
Company to be the beneficial owner of more than five percent of such class.class:
AMOUNT AND NATURE OF
NAME AND ADDRESS BENEFICIAL PERCENT OF
NAME AND ADDRESS
OF BENEFICIAL OWNER OWNERSHIP* CLASS*
- ---------------------------------------------------------------------------------------------------------------- -------------------- ----------
Nestle Holdings, Inc.(1)....................................... 5,050,000 31.7%
Five High Ridge Park
Stamford, Connecticut 06905......................... 4,056,008 28.1%
c/o Nestle USA, Inc.
800 North Brand Boulevard
Glendale, California 91203
Nestle S.A.(1)
Avenue Nestle 55
Vevey, Switzerland CH-1800
T. Gary Rogers(2)(3)........................................... 1,724,530 12.3%............................. 1,851,371 13.6%
5929 College Avenue
Oakland, California 94618
General Electric Capital Corporation(4)(5)............................ 1,450,000 9.4%9.7%
260 Long Ridge Road
Stamford, Connecticut 06927
Trustees of General Electric Pension
Trust(4)(6)................................................... 1,450,000 9.4%9.7%
GE Investment Private Placement Partners I,
Limited Partnership
P.O. Box 7900
3003 Summer Street
Stamford, Connecticut 06904
State of Wisconsin Investment Board(5)......................... 1,280,000 9.2%
P.O. Box 7842
Madison, Wisconsin 53707
William F. Cronk, III(2)(7).................................... 885,549 6.3%...................... 1,021,101 7.5%
5929 College Avenue
Oakland, California 94618
Cortopassi Family Trust(9)....................... 937,000 7.0%
Stanislaus Food Products Co.
San Tomo Partners
Sierra Quality Canners, Inc.
LICO Brands, Inc.
Trecento Investors, Inc.
DACCO, Inc.
Capecchio Foundation
Alpinello Investors, Inc.
VICOR, LLC
Wright Tract Partners, LP
11292 North Alpine Road
Stockton, California 9461895212
Robert E. Torray & Co., Inc.(8).................. 809,000 6.0%
The Torray Corporation
Robert E. Torray
6610 Rockledge Drive, Suite 450
Bethesda, Maryland 20817-1869
Wilke/Thompson Capital Management, Inc.(5)....... 692,300 5.1%
3800 Norwest Center
90 S. 7th Street
Minneapolis, Minnesota 55402
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* The amounts and percentages indicated as beneficially owned were calculated
pursuant to Rule 13d-3(d)(1) under the Exchange Act which provides that
beneficial ownership of a security is acquired by a person if that person
has the right to acquire beneficial ownership of such security within 60
days through the exercise of a right such as the exercise of an option or
the conversion of a convertible security into common stock.Common Stock. Any securities
not outstanding which are subject to options or conversion privileges are
deemed outstanding for the purpose of computing the percentage of
outstanding securities of the class owned by the person who owns the option
or conversion privilege but are not deemed outstanding for the purpose of
computing the percentage of the class owned by any other person.
(1) Includes warrants to purchase 2,000,0001,000,000 shares of Common Stock which may be
exercisedare
currently exercisable by Nestle Holdings, Inc. ("NHI") within 60 days.. NHI has sole voting
power and sole investment power overwith respect to all of these shares. Nestle
S.A. ("Nestle") filed a joint statement on Schedule 13D with NHI and may be
deemed to have sole voting power and sole investment power ofwith respect to
these shares because NHI is a wholly-owned subsidiary of Nestle.
(2) Includes options to purchase 2,880 shares of Common Stock under the
Company's Incentive Stock Option Plan (1982) exercisable within 60 days,
options to purchase 13,30885,940 shares of Common Stock under the
Company's Stock Option Plan (1992) exercisable within 60 days, and options
to purchase 19,40085,200 shares of Common Stock under the Company's Stock Option
Plan (1993) exercisable within 60 days.
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(3) 1,588,9421,571,036 and 100,000 of these shares are held directly by the Rogers
Revocable Trust and the Four Rogers Trust, respectively, for which Mr.
Rogers and his wife serve as co-trustees. Mr. Rogers and his wife share the
voting and investment power with respect to such shares. Also includes 9,195
shares held in Mr. Rogers' account in the Dreyer's Grand Ice Cream, Inc.
Savings Plan (a 401(k) plan), based upon the most recent available plan
statement.
(4) Assumes full conversion of the 6.25% convertible subordinated debentures due
June 30, 2001 (the "Notes")Series B Convertible Preferred Stock of the
Company held by the named entity or entities into the Company's Common
Stock. These parties filed a Schedule 13D (reporting the beneficial
ownership described above) jointly with General Electric Capital Services,
Inc. (formerly known as General Electric Financial Services, Inc.) and
General Electric Company each of which disclaimed beneficial ownership of
all shares of the Company's Common Stock beneficially owned by General
Electric Capital Corporation, Trustees of General Electric Pension Trust and
GE Investment Private Placement Partners I, Limited Partnership.
(5) The holder has sole voting power and sole investment power overwith respect to
all of these shares.
(6) Trustees of General Electric Pension Trust ("GEPT") have sole voting power
and sole investment power overwith respect to 586,495 of these shares. GE
Investment Private Placement Partners I, Limited Partnership ("GEIPPP") has
sole voting power and sole investment power overwith respect to 863,505 of these
shares. GEPT and GEIPPP may constitute a group as such term is used in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.
(7) 849,961 of these shares are held directly by the Cronk Revocable Trust for
which Mr. Cronk and his wife serve as co-trustees. Mr. Cronk and his wife
share the voting and investment power with respect to such shares. Excludes
42,000 shares held in irrevocable trusts for the benefit of Mr. Cronk's
sons. Mr. Cronk does not have voting or investment power overwith respect to
these 42,000 shares and Mr. Cronk disclaims beneficial ownership of all of
the shares held in these irrevocable trusts.
(8) Robert E. Torray & Co., Inc. ("RETC") has shared voting and investment power
with respect to 739,000 of these shares. The Torray Corporation ("TTC") has
shared voting and investment power with respect to 70,000 of these shares.
Robert E. Torray, an individual, has shared voting and investment power with
respect to all of these shares, and has filed a joint statement on Schedule
13G as a "parent holding company" of RETC and TTC in reliance upon certain
Security & Exchange Commission No Action Letters. RETC and TTC are
registered investment advisors under Section 203 of the Investment Advisors
Act of 1940, and are deemed to have beneficial ownership of the shares
indicated above because they hold investment discretion with respect to the
accounts in which the shares are held.
(9) Each entity has sole voting and sole investment power with respect to only
those shares of Common Stock registered in the name of the entity, as
follows: Cortopassi Family Trust, 250,000 shares; Stanislaus Food
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Products Co., 152,000 shares; San Tomo Partners, 150,000 shares; Sierra
Quality Canners, Inc., 150,000 shares; LICO Brands, Inc., 50,000 shares;
Trecento Investors, Inc., 60,000 shares; DACCO, Inc., 50,000 shares;
Capecchio Foundation, 25,000 shares; Alpinello Investors, Inc., 15,000
shares; VICOR, LLC, 30,000 shares; Wright Tract Partners, LP, 5,000 shares.
The listed entities filed a joint statement on Schedule 13D as members of a
group.
SECURITY OWNERSHIP OF MANAGEMENT
The following table sets forth information as of March 24, 1995September 10, 1997
concerning the beneficial ownership of Common Stock of the Company by each
director and nominee of the Company, the Chief Executive Officer and each of the
four most highly compensated executive officers of the Company (the "Named
Executive Officers") and all directors and executive officers of the Company as
a group. Except as otherwise noted, each person has sole voting and sole
investment power with respect to the shares shown.shown:
AMOUNT OF
BENEFICIAL PERCENT OF
NAME OWNERSHIP CLASS
---- ----------OWNERSHIP(1) CLASS(1)
----------------------------------------------------------- ------------ ----------
T. Gary Rogers(1)(2)................................................... 1,724,530 12.3%Rogers(2)(3)....................................... 1,851,371 13.6%
William F. Cronk, III(1)(3)............................................ 885,549 6.3%
Timm F. Crull.......................................................... -0-III(2)(4)................................ 1,021,101 7.5%
William R. Oldenburg(5).................................... 81,768 *
MerrilThomas M. Halpern(4)................................................... 8,852Delaplane(6)..................................... 81,444 *
Jerome L. Katz(4)...................................................... 8,000Paul R. Woodland(7)........................................ 68,781 *
Edmund R. Manwell(8)....................................... 32,000 *
John W. Larson(4)...................................................... 19,000Larson(8).......................................... 28,000 *
Edmund R. Manwell(4)................................................... 29,000Timm F. Crull(8)........................................... 12,000 *
Anthony J. Martino(4).................................................. 5,000Jan L. Booth(9)(10)........................................ 9,100 *
Jack O. Peiffer(4).....................................................Peiffer(8)......................................... 8,000 *
Timothy P. Smucker(10)..................................... 6,000 *
M. Steven Langman(10)...................................... 5,000 *
Thomas M. Delaplane(5)................................................. 36,617 *
William R. Oldenburg(6)................................................ 42,990 *
Paul R. Woodland(7).................................................... 34,252 *
Directors and Executive Officers as a Group (13
persons)(8)............ 2,844,638 20.2%(11)............................................. 3,230,496 23.0%
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* Less than one percent (1%).percent.
(1) The amounts and percentages indicated as beneficially owned were calculated
pursuant to Rule 13d-3(d)(1) under the Exchange Act which provides that
beneficial ownership of a security is acquired by a person if that person
has the right to acquire beneficial ownership of such security within 60
days through the exercise of a right such as the exercise of an option or
the conversion of a convertible security into Common Stock. Any securities
not outstanding which are subject to options or conversion privileges are
deemed outstanding for the purpose of computing the percentage of
outstanding securities of the class owned by the person who owns the option
or conversion privilege but are not deemed outstanding for the purpose of
computing the percentage of the class owned by any other person.
(2) Includes options to purchase 2,880 shares of Common Stock under the
Company's Incentive Stock Option Plan (1982) (the "ISO Plan") exercisable
within 60 days, options to purchase 13,30885,940 shares of Common Stock under the
Company's Stock Option Plan (1992) (the "1992 Plan") exercisable within 60
days, and options to purchase 19,40085,200 shares of Common Stock under the
Company's Stock Option Plan (1993) (the "1993 Plan") exercisable within 60
days.
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(2) 1,588,942(3) 1,571,036 and 100,000 of these shares are held directly by the Rogers
Revocable Trust and the Four Rogers Trust, respectively, for which Mr.
Rogers and his wife serve as co-trustees. Mr. Rogers and his wife share the
voting and investment power with respect to such shares. (3)Also includes
9,195 shares held in Mr. Rogers account in the Dreyer's Grand Ice Cream,
Inc. Savings Plan (a 401(k) plan), based upon the most recent available
plan statement.
(4) 849,961 of these shares are held directly by the Cronk Revocable Trust for
which Mr. Cronk and his wife serve as co-trustees. Mr. Cronk and his wife
share the voting and investment power with respect to
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such shares. Excludes 42,000 shares held in irrevocable trusts for the
benefit of Mr. Cronk's sons. Mr. Cronk does not have voting or investment
power overwith respect to these 42,000 shares and Mr. Cronk disclaims
beneficial ownership of all of the shares held in these irrevocable trusts.
(4)(5) Includes options to purchase 8,410 shares of Common Stock under the ISO
Plan exercisable within 60 days, options to purchase 12,160 shares of
Common Stock under the 1992 Plan exercisable within 60 days, and options to
purchase 38,160 shares of Common Stock under the 1993 Plan exercisable
within 60 days.
(6) Includes options to purchase 8,410 shares of Common Stock under the
Company's Incentive Stock Option Plan (1982) (the "ISO Plan") exercisable
within 60 days, options to purchase 12,160 shares of Common Stock under the
1992 Plan exercisable within 60 days, and options to purchase 37,360 shares
of Common Stock under the 1993 Plan exercisable within 60 days. Also
includes 6,182 shares held in Mr. Delaplane's account in the Dreyer's Grand
Ice Cream, Inc. Savings Plan (a 401(k) plan), based upon the most recent
available plan statement.
(7) Includes options to purchase 4,306 shares of Common Stock under the ISO
Plan exercisable within 60 days, options to purchase 12,160 shares of
Common Stock under the 1992 Plan exercisable within 60 days, and options to
purchase 36,860 shares of Common Stock under the 1993 Plan exercisable
within 60 days.
(8) Includes options to purchase 8,000 shares of Common Stock under the 1993
Plan exercisable within 60 days.
(9) 2,000 of these shares are held directly by the Herrero/Booth Revocable
Trust for which Ms. Booth and her husband serve as co-trustees. Ms. Booth
and her husband share the voting and investment power with respect to such
shares. Also includes 2,100 shares held by the Herrero Bros. Inc. Employee
Profit Sharing and Retirement Plan & Trust, for which Ms. Booth's husband
serves as a co-trustee and is a plan participant. Ms. Booth disclaims
beneficial ownership of these shares except to the extent of her pecuniary
interest therein.
(10) Includes options to purchase 5,000 shares of Common Stock under the 1993
Plan exercisable within 60 days.
(5)(11) Includes options to purchase 11,252 shares of Common Stock under the ISO
Plan exercisable within 60 days and options to purchase 8,400 shares of
Common Stock under the 1993 Plan exercisable within 60 days.
(6) Includes options to purchase 11,252 shares of Common Stock under the ISO
Plan exercisable within 60 days and options to purchase 8,700 shares of
Common Stock under the 1993 Plan exercisable within 60 days.
(7) Includes options to purchase 11,252 shares of Common Stock under the ISO
Plan exercisable within 60 days and options to purchase 8,100 shares of
Common Stock under the 1993 Plan exercisable within 60 days.
(8) Includes options to purchase 59,36426,316 shares of Common Stock under the ISO
Plan exercisable within 60 days, options to purchase 26,616209,400 shares of
Common Stock under the 1992 Plan exercisable within 60 days, and options to
purchase 101,600345,342 shares of Common Stock under the 1993 Plan exercisable
within 60 days.
(THIS SPACE INTENTIONALLY LEFT BLANK)
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EXECUTIVE COMPENSATION
SUMMARYMATTER SUBMITTED TO A VOTE OF CASHSTOCKHOLDERS
AMENDMENT TO CERTIFICATE OF INCORPORATION TO INCREASE THE NUMBER OF AUTHORIZED
SHARES OF COMMON STOCK AND CERTAIN OTHER COMPENSATION
The following table shows, for the fiscal years ended December 31, 1994,
December 25, 1993 and December 26, 1992 the cash compensation paid by the
Company, as well as certain other compensation paid or accrued for those years,
to the Named Executive Officers in all capacities in which they served:
SUMMARY COMPENSATION TABLE
LONG-TERM COMPENSATION
-----------------------------------
ANNUAL COMPENSATION AWARDS
------------------------------------ ------------------------- PAYOUTS
OTHER ANNUAL SECURITIES ------- ALL OTHER
COMPEN- RESTRICTED UNDERLYING LTIP COMPEN-
NAME AND PRINCIPAL SALARY($) BONUS($) SATION STOCK OPTIONS/SARS PAYOUTS SATION
POSITION YEAR (1) (2) ($)(3)(4) AWARD(S)($) (#) ($)(5) ($)(6)
- -------------------------- ----- --------- -------- ------------ ----------- ------------ ------- ---------
T. Gary Rogers.............. 1994 551,637 280,000 42,357 -0- 42,600(10) -0- 19,213
Chairman of the Board and 1993 415,744(7) -0- 50,145 -0- 93,300(8) -0- 22,808
Chief Executive Officer 1992 490,077 -0- 49,435 -0- 21,780 -0- 23,483
William F. Cronk, III....... 1994 551,637 280,000 50,914 -0- 42,600(10) -0- 17,892
President 1993 415,744(7) -0- 60,156 -0- 93,300(8) -0- 21,006
1992 490,077 -0- 54,726 -0- 21,780 -0- 21,257
Thomas M. Delaplane......... 1994 285,585 145,000 -0- 21,800(10) -0- 17,892
Vice President -- Sales 1993 265,640 -0- -0- 27,700(8) -0- 21,006
1992 244,884 43,750 -0- 8,520(9) -0- 21,257
William R. Oldenburg........ 1994 299,623 152,500 -0- 21,800(10) -0- 14,196
Vice President -- 1993 276,602 -0- -0- 28,000(8) -0- 19,207
Operations 1992 258,923 55,650 -0- 8,520(9) -0- 14,911
Paul R. Woodland............ 1994 275,585 140,000 -0- 21,800(10) -0- 17,892
Vice President -- Finance 1993 257,564 -0- -0- 27,400(8) -0- 21,006
and Administration, 1992 244,884 43,750 -0- 8,520(9) -0- 21,257
Chief Financial Officer
and Assistant Secretary
- ---------------
(1) Includes amounts contributed by the officers to the salary deferral portion
of the Company's Pension Plan and Savings Plan.
(2) Includes amounts accrued under the Company's Incentive Bonus Plan.
(3) No disclosure for fiscal years 1994, 1993 and 1992 is made for Messrs.
Delaplane, Oldenburg and Woodland under Other Annual Compensation as the
aggregate incremental compensation otherwise reportable in this column for
these individuals does not require disclosure under the rules.
(4) The amounts reported for each of Messrs. Rogers and Cronk include $25,000
for 1994, $30,250 for 1993 and $31,500 for 1992 paid to Price Waterhouse
LLP for tax and accounting services rendered on behalf of Messrs. Rogers
and Cronk, respectively. The amounts reported also include $16,479 in 1994,
$15,583 in 1993 and $15,859 in 1992 for Mr. Rogers, and $22,671 in 1994,
$24,254 in 1993 and $16,363 in 1992 for Mr. Cronk in connection with each
of Mr. Rogers' and Mr. Cronk's use of Company automobiles.
(5) LTIP is an acronym for "Long Term Incentive Plan" which term is defined in
Regulation S-K as any plan providing compensation intended to serve as
incentive for performance to occur over longer than one fiscal year other
than restricted stock, options and SARs. The Company currently does not
have a Long Term Incentive Plan.
(6) For each of Messrs. Rogers, Cronk, Delaplane and Woodland, the amounts
reported include contributions of $10,500 in 1994, $15,610 in 1993 and
$16,020 in 1992 to the Dreyer's Grand Ice Cream, Inc. Money Purchase
Pension Plan (the "Pension Plan") and $7,392 in 1994, $5,396 in 1993 and
$5,237 in 1992 to the Dreyer's Grand Ice Cream, Inc. Savings Plan (the
"Savings Plan"). For Mr. Oldenburg the amounts reported include
contributions of $10,500 in 1994, $16,509 in 1993 and $12,816 in 1992 to
the Pension Plan and $3,696 in 1994, $2,698 in 1993 and $2,095 in 1992 to
the Savings Plan. Additionally, this includes $1,321 in 1994, $1,802 in
1993 and $2,226 in 1992 for Mr. Rogers in split-dollar life insurance
premiums paid by the Company.
6
11
(7) After being offered the opportunity by the Compensation Committee ofTO EFFECT A TWO-FOR-ONE STOCK SPLIT OF COMMON STOCK.
(A) OVERVIEW
On September 4, 1997, the Board of Directors Messrs. Rogersapproved a proposal to
amend the Company's Certificate of Incorporation in order to:
- Increase the number of shares of Common Stock which the Company is
authorized to issue from 30,000,000 to 60,000,000; and
Cronk- Split the Common Stock of the Company by changing each electedissued share of
Common Stock into two shares of Common Stock.
There would be no change in the par value of each share of Common Stock,
which would be $1.00 both before and after the stock split. If adopted, the
amendment and the stock split will be effective at the close of business on
October 30, 1997.
6
11
The full text of the proposed amendment to receivethe Certificate of Incorporation
is set forth in Appendix A to this Proxy Statement. The amendment will not
affect the number of shares of preferred stock options grantedauthorized, which is 10,000,000
shares, par value $1.00 per share.
(B) PURPOSES AND EFFECTS OF INCREASING THE NUMBER OF AUTHORIZED SHARES OF COMMON
STOCK
The increase in authorized shares is necessary to enable the Company to
issue a number of shares sufficient to effect the split and to reserve a
sufficient number to meet all known requirements, and to provide flexibility for
the future.
The proposed amendment would increase the number of shares of Common Stock
which the Company is authorized to issue from 30,000,000 to 60,000,000. The
additional 30,000,000 shares would be a part of the existing class of Common
Stock and, if and when issued, would have the same rights and privileges as the
shares of Common Stock presently issued and outstanding. The holders of Common
Stock of the Company do not have preemptive rights to subscribe to additional
securities that may be issued by the Company, which means that current
stockholders do not have a prior right to purchase any new issue of Common Stock
of the Company in order to maintain their proportionate ownership interest.
As of September 12, 1997, the Company had [13,448,780] shares of Common
Stock issued, and [16,551,220] shares of Common Stock authorized but unissued,
of which approximately 7,722,000 shares were reserved for issuance under the
Company's stock option and employee stock plans, for the exercise of outstanding
Common Stock Option Plan (1992) (the "1992
Plan")warrants, and for the conversion of the Company's convertible
preferred stock. The remaining 8,829,220 shares of authorized but unissued
shares of Common Stock were unreserved. If the proposed amendment is adopted,
the effect will be to double each of these amounts. Except for the proposed
stock split, there are no plans, agreements, commitments or understandings for
the issuance of the newly authorized shares, other than the described reserved
shares.
(C) PURPOSES AND EFFECTS OF PROPOSED TWO-FOR-ONE STOCK SPLIT
1. General
The Board of Directors anticipates that a two-for-one stock split of Common
Stock of the Company will broaden the market for the shares by increasing the
total shares available for trading and reducing the market price of the Common
Stock to a range more attractive to investors, particularly individuals. The
Company will list the additional shares of Common Stock to be issued to effect
the stock split with the National Association of Securities Dealers, Inc.
Automated Quotation System (Nasdaq) National Market, on which the Company's
Common Stock is currently listed.
If the proposed amendment is adopted, each Common Stock holder of record at
the close of business on October 30, 1997, would become the record owner of, and
entitled to receive a certificate representing, one additional share of Common
Stock for each share of Common Stock then owned of record by such Common Stock
holder. The Company anticipates that certificates representing additional shares
will be mailed on or about November 21, 1997.
2. Federal Income Tax Consequences
The Company has been advised by its tax advisor that the proposed stock
split would result in lieuno gain or loss or realization of $100,000taxable income to owners
of salary, priorCommon Stock under existing United States federal income tax laws. The cost
basis for federal tax purposes of each new share and each retained share of
Common Stock immediately following the stock split would be equal to earning such salary
compensation. These elections were madeone-half of
the cost basis for federal tax purposes of the retained share immediately
preceding the stock split, and the holding period for the new share issued
pursuant to the "Income Swap Plan"stock split would include the holding period for the retained
share of Common Stock. The stock split should not change the amount of federal
tax that would otherwise be payable as the result of a sale of a stockholder's
investment in the Company's Common Stock.
The laws of jurisdictions other than the United States may impose income
taxes on the issuance of the Compensation Committee. The Income Swap Plan is described in the
Compensation Committee's Report on Executive Compensation on pages 11-13
herein.
(8) For Messrs. Rogersadditional shares and Cronk the amount listed includes options granted
under the 1992 Plan pursuantstockholders are urged to
the Income Swap Plan referenced in footnoteconsult their tax advisors.
7
above and described in the Compensation Committee's Report on Executive
Compensation on pages 11-13 herein. Additionally, each of the Named
Executive Officers earned 12
3. Brokerage Commissions
If a bonus for his performance in 1993. Priorstockholder elects to earning such bonus each Named Executive Officer elected to receive
non-qualified stock options in lieu of a cash bonus pursuant to the Income
Swap Plan (referenced in footnote 7 above and described in the Compensation
Committee's Report on pages 11-13 herein). In this regard, Messrs. Rogers
and Cronk each received an option tosell or purchase 13,100 shares of the Company's Common
Stock Mr. Delaplane receivedfollowing the effectuation of the stock split, stock transfer taxes, if
applicable, may be higher in a transaction involving an option to purchase 8,400equivalent aggregate
market value, because of the greater number of shares involved. Also, because
the stock split will effectively double the number of shares of Common Stock
representing a stockholder's investment in the Company, the stockholders may
have to pay a higher brokerage commission to sell their investment after the
stock split. Stockholders may wish to consult their respective brokers to
ascertain whether any stock transfer taxes would apply and the brokerage
commission that would be charged for disposing of the greater number of shares.
4. Effects on Stock Option and Employee Stock Plans
In accordance with the Company's plans under which stock or stock options
are awarded, it will be necessary to make appropriate adjustments to the number
of shares covered and, where applicable, the exercise prices. From the effective
date of the proposed amendment, shares covered by outstanding stock options will
be doubled and the exercise price per share will be divided by two. Shares
reserved for issuance under the Company's stock option and employee stock plans
will be doubled.
5. Effects on Rights Agreement
Under the Company's Amended and Restated Rights Agreement dated March 4,
1991, as amended, the proposed stock split would trigger adjustments in order to
avoid dilution of the benefits under the Rights Agreement.
6. Accounting Treatment
If the proposed amendment is adopted, there will be no change in total
stockholders' equity, but, effective as of the close of business on October 30,
1997, the Company's Common Stock Mr. Oldenburg received an optioncapital account will be increased to purchase 8,700 shares ofreflect
the Company's Common Stock, and Mr. Woodland
received an option to purchase 8,100 shares of the Company's Common Stock.
Messrs. Rogers and Cronk's options have an exercise price of $29.375.
Messrs. Delaplane, Oldenburg and Woodland's options have an exercise price
of $23.875 (the fair market value on the date of grant, March 7, 1994). All
of these stock options were granted under the Company's Stock Option Plan
(1993) and vested on November 11, 1994.
(9) Includes options to purchase 3,390 shares granted under the Company's
Incentive Stock Option Plan (1982) which were later rescinded by the Board
of Directors on May 19, 1992.
(10) Excludes options granted in 1994 in lieu of salary and/or a cash bonus for
the Named Executive Officer's performance in 1993. These excluded options
were included in the number of options reported for the Named Executive
Officer in 1993 and are more fully described in footnotes 7 and 8 above.
STOCK OPTIONS
The following table provides information concerning the grant of stock
options made during fiscal 1994 to the Named Executive Officers:
OPTION GRANTS IN THE LAST FISCAL YEAR
INDIVIDUAL GRANTS
----------------------------------------------------------
PERCENT OF
NUMBER OF TOTAL
SECURITIES OPTIONS/SARS
UNDERLYING GRANTED TO EXERCISE OR GRANT DATE
OPTIONS/SARS EMPLOYEES IN BASE PRICE EXPIRATION PRESENT
NAME GRANTED FISCAL YEAR ($/SH) DATE VALUE($)(3)
---- ------------ ------------ ----------- ---------- ----------
T. Gary Rogers................. 42,600(1) 11.9% $23.875 3/6/04 $566,154
19,400(2) 5.4 29.375 3/6/04 237,262
William F. Cronk, III.......... 42,600(1) 11.9 23.875 3/6/04 566,154
19,400(2) 5.4 29.375 3/6/04 237,262
Thomas M. Delaplane............ 21,800(1) 6.1 23.875 3/6/04 289,722
8,400(2) 2.4 23.875 3/6/04 111,636
William R. Oldenburg........... 21,800(1) 6.1 23.875 3/6/04 289,722
8,700(2) 2.4 23.875 3/6/04 115,623
Paul R. Woodland............... 21,800(1) 6.1 23.875 3/6/04 289,722
8,100(2) 2.3 23.875 3/6/04 107,649
- ---------------
(1) Options granted pursuant to the Company's Stock Option Plan (1993) (the
"1993 Plan") and begin vesting two years from the date of grant as follows:
The options may be exercised only as to 40% of the optioned shares after two
years from the date of grant and as to an additional 20% after each of the
succeeding three years. The options granted under the 1993 Plan expire ten
years from the date of grant,
7
12
terminate within various periods ranging from 3 to 24 months after the
employee's termination of employment, death or disability, and are
non-transferable except by will or the laws of descent and distribution. The
exercise price of options granted under the 1993 Plan equalled the fair
market value, or equalled 123% of the fair market$1.00 per share par value of the additional shares issued and the capital in
excess of the Company's Common Stock on the date of grant.par account will be reduced by a like amount. In theeither event, of athere
will be no change in
control of the Company, all then outstanding options issued under the 1993
Plan shall vest and become immediately exercisable. The term
"change-in-control" as defined in the 1993 Plan is more completely described
under the caption "Employment Contracts, Employment Termination and
Change-in-Control Arrangements" on pages 9-10 herein.
(2) Options vested on November 11, 1994 and were granted under the 1993 Plan in
lieu of cash compensation for the Named Executive Officer's performance in
1993 pursuant to the Compensation Committee's Income Swap Plan. The award of
these options is more completely described in footnotes 7 and 8 to the table
titled "Summary Compensation Table" on page 6 herein. The Income Swap Plan
is more completely described in the Compensation Committee's Report on
Executive Compensation on pages 11-13 herein.
(3) Present value was calculated using the Black-Scholes option pricing model
which involves an extrapolation to future price levels based solely on past
performance. For the options granted, the following assumptions were used in
the Black-Scholes valuation calculation: dividend yield of 1.01%, risk-free
rate of return of 6.60%, 10 year term and a volatility coefficient of
0.3994. The annual dividend yield equals the quotient of the current annual
dividend of $.24 divided by the stock price on the date of grant. All
volatility coefficients used were based on the daily closing price of the
Company's Common Stock over a two year period. The risk-free rate is the
yield on a U.S. Government Zero Coupon Bond with a maturity equal to the
term of the grant. The value calculated by use of this model should not be
viewed in any way as a forecast of the future performance of the Company's
Common Stock.
The following table provides information on option exercises in fiscal 1994
by the Named Executive Officers and the value of such officers' unexercised
in-the-money options as of December 31, 1994:
AGGREGATED OPTION EXERCISES IN THE LAST FISCAL YEAR
AND FISCAL YEAR-END OPTION VALUES
NUMBER OF SECURITIES VALUE OF UNEXERCISED
NUMBER UNEXERCISED OPTIONS/SARS IN-THE-MONEY OPTIONS/SARS
OF SHARES AT FY-END(1) AT FY-END($)(1)
ACQUIRED ON VALUE ---------------------------- ----------------------------
NAME EXERCISE REALIZED EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
---- ----------- -------- ----------- ------------- ----------- -------------
T. Gary Rogers............. 11,200 $135,184 13,448 164,892 $ 102,916 $66,479
William F. Cronk, III...... 11,200 135,184 13,448 164,892 102,916 66,479
Thomas M. Delaplane........ 12,226 246,885 21,172 47,958 150,337 44,005
William R. Oldenburg....... 10,000 157,500 21,472 47,958 150,562 44,005
Paul R. Woodland........... -0- -0- 18,312 47,958 115,712 44,005
- ---------------
(1) Those options described in footnote 8 to the table titled "Summary
Compensation Table" on page 6 herein, which were granted in 1994 in lieu of
a cash bonus for the Named Executive Officer's performance in 1993, are
included in this table as such options were granted to the recipient in
fiscal 1994.
8
13
PERFORMANCE GRAPH
The following graph shows the Company's total return to stockholders
compared to the Standard & Poor's 500 Index and the Standard & Poor's Food
Products Index over the five year period from December 29, 1989 through December
31, 1994:
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
AMONG DREYER'S GRAND ICE CREAM, INC., THE S&P'S 500 INDEX
AND THE S&P'S FOOD PRODUCTS INDEX
DREYER'S S&P FOOD
MEASUREMENT PERIOD GRAND ICE S&P 500 PRODUCTS
(FISCAL YEAR COVERED) CREAM, INC. INDEX INDEX
1989 100.00 100.00 100.00
1990 152.51 95.54 107.07
1991 266.50 122.17 148.85
1992 176.16 136.20 159.07
1993 215.99 148.83 145.13
1994 186.14 151.55 160.70
- ---------------
* Assumes $100 investment in each of Dreyer's Grand Ice Cream, Inc., the S&P 500
Index and the S&P Food Products Index, and the reinvestment of dividends.
EMPLOYMENT CONTRACTS, EMPLOYMENT TERMINATION AND CHANGE-IN-CONTROL ARRANGEMENTS
Currently, all options which have been and may in the future be issued
understockholders' equity. In addition, the
Company's Incentive Stock Option Plan (1982) (the "ISO Plan"), the
Company's Stock Option Plan (1992) (the "1992 Plan")previously reported net income (loss) per common share and the Company's Stock
Option Plan (1993) (the "1993 Plan") (collectively, the "Plans") immediately
vest and become subject to exercise upon a change-in-control of the Company. A
change-in-control is defined under the Plans to include (i) the acquisition by
any person of beneficial ownership of forty percent (40%) or more of the
combined voting power of the Company's outstanding securities immediately after
such acquisition (which forty percent (40%) shall be calculated after including
the dilutive effect of the conversion or exchange of any outstanding securities
of the Company convertible into or exchangeable for voting securities), or (ii)
a change in the composition of majority membership of the Board of Directors
over any two-year period commencing, with respect to the ISO Plan and the 1992
Plan, on or after March 7, 1994, or, with respect to the 1993 Plan, on or after
September 9, 1993, or (iii) a change in ownership of the Company such that the
Company becomes subject to the delisting of its Common Stock from the NASDAQ
National Market System, or (iv) the approval by the Board of Directors of the
sale of all or substantially all of the assets of the Company, or (v) the
approval by the Board of Directors of any merger, consolidation, issuance of
securities or purchase of assets, the result of which would be the occurrence of
any event described in clause (i), (ii) or (iii) above. Further, the acquisition
by any person (or any group of which such a person is a
9
14
member) who is (with respect to the ISO Plan and the 1992 Plan, as of March 7,
1994, or, with respect to the 1993 Plan, as of September 9, 1993) a member of
the Board of Directors, of beneficial ownership of forty percent (40%) or more
of the combined voting power of the Company's outstanding securities immediately
after such acquisition (the calculation of such 40% being made as described
above), shall not be deemed a Change of Control for purposes of the Plans.
The 1993 Plan also includes provisions whereby the options granted an
optionee thereunder immediately vest and become exercisable upon the death or
retirement of the optionee. Additionally, under the 1993 Plan, the Administrator
may, in its discretion, accelerate the vesting of an optionee's options. Except
for these provisions of the Company's stock option plans, the Company has no
employment contracts or any employment termination or change-in-control
arrangements.
REMUNERATION OF DIRECTORS
Directors' compensation consists of a meeting fee of $4,000 for each
meeting of the Board of Directors actually attended and an annual fee of $4,000
for each member of each committee. The Board of Directors generally meets four
times each year. Each committee meets at least annually and more frequently if
requested by any member. Employee directors receive no compensation as
directors. Members of the Board of Directors who were not employees of the
Company (each a "Non-Employee Director") received an option to purchase 5,000
shares of the Company's Common Stock on the date the Company's Stock Option Plan
(1993) (the "1993 Plan") was approved by the Company's stockholders or received
such an option upon appointment to the Board of Directors, if appointment
occurred subsequent to such approval. Also, additional stock option grants to
purchase 1,500 shares of the Company's Common Stockdividends
per common share will be awardedretroactively adjusted to each Non-
Employee Director on each anniversaryreflect the stock split. The
number of the date the 1993 Plan was approved by
the Company's stockholders.
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
The members of the Compensation Committee are Messrs. Crull, Halpern, Katz,
Larson, Manwell, Martino and Peiffer. Mr. Manwell was the Secretary of the
Company and a partner in the law firm of Manwell & Milton, general counsel to
the Company, during fiscal 1994. The Company paid Manwell & Milton $1,039,250 in
fees during fiscal 1994 for services rendered as general counsel to the Company.
Mr. Manwell is not separately compensated for his services as Secretary of the
Company although some of the fees received by Manwell & Milton may be for
services that, in other corporations, are performed by the corporate secretary.
On June 14, 1994 the Company completed a transaction with Nestle Holdings,
Inc. ("NHI") pursuant to a Stock and Warrant Purchase Agreement (the "Nestle
Agreement") whereby NHI purchased from the Company for an aggregate price of
$106,000,000 three million shares of Common Stock of the Company issued and warrantsoutstanding, and
reserved for issuance, would double.
7. Series B Convertible Preferred Stock
In addition to the purchase of two million shares ofCompany's Common Stock, of the Company. NHI
agreed that neither it nor its affiliates will acquire in the aggregate 35% or
more of the outstanding common stock of the Company (including for purposes of
this calculation outstanding stock options and other securities convertible
into, or entitling the holder thereof to acquire Common Stock, hereafter "Voting
Stock") without the prior consent of the Company's BoardCertificate of
Directors, subject
to certain limited exceptions, for a period of ten years. The Nestle Agreement
also provides that the Company will recommend and use the same efforts as are
used to cause the elections of all other nominees toIncorporation currently empowers the Board of Directors to authorize the
issuance of one or more series of preferred stock without stockholder approval.
Pursuant to this authorization, the Company to cause the election to the Boardhas authorized three (3) series of
two nominees selected by NHI.
Thereafter, throughout the termpreferred stock, of the Nestle Agreement, NHI may nominate that
numberwhich one series of nominees proportionate to the amountpreferred stock has been issued. As of
Voting Stock owned by NHI and
its affiliates. NHI and its affiliates have certain rights to purchase
additional shares of Common Stock in open market transactions in the event their
aggregate equity ownership in the Company is diluted to certain levels.
Messrs. Martino and Crull were named to the Board of Directors of the
Company pursuant to the terms of the Nestle Agreement. Mr. Crull served as
Chairman of the Board and Chief Executive Officer of Nestle USA, Inc.
("Nestle"), Chairman of the Board of NHI and as director of Nestle Food Company
("NFC"), until his retirement or resignation from these positions in December of
1994. Mr. Martino served as Executive
10
15
Vice President, Chief Financial Officer of Nestle and as director of NFC until
his retirement in July of 1994 or resignation in January of 1994, respectively.
Nestle and NFC are affiliates of NHI.
In June 1993, the Company issued in a private placement to General Electric
Capital Corporation ("GECC"), Trustees of General Electric Pension Trust and GE
Investment Private Placement Partners I, Limited Partnership (each individually,
a "Holder"), pursuant to a Securities Purchase Agreement (the "GE Agreement"),
an aggregate of $100,752,000 of 6.25% convertible subordinated debentures of the
Company due June 30, 2001. The debentures are convertible at an initial
conversion price of $34.74 intoSeptember 12, 1997, a total of 2,900,0001,007,522 shares of commonSeries B Convertible
Preferred Stock were outstanding. No change to the Company's preferred stock
authorization is being requested. Existing holders of Series B Preferred Stock
do not have preemptive rights, nor any other participatory rights other than
voting with respect to the matters covered by this proposal, except that the
ratio and price of conversion of the Company. The GE Agreement provides thatSeries B Preferred Stock into Common Stock
will be proportionately adjusted to reflect the Company will nominate and
recommend the electionstock split.
8. Financial Statements
Financial statements are not included in this proxy statement, as they are
not deemed material to the Boardexercise of Directors of a nominee selected by the
Holder designated in the GE Agreement. Mr. Peiffer was namedprudent judgment with respect to the
Board of
Directors of the Company pursuant to this provision of the GE Agreement. Mr.
Peiffer served as Senior Vice President -- Corporate Human Resources of General
Electric Company ("GEC") until his retirement in February of 1993. GEC is an
affiliate of the Holders.
COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION
Pursuant to regulations adopted by the SEC in October 1992, the
Compensation Committee is required to disclose its bases for compensation of the
Named Executive Officers and to discuss the relationship between the Company's
performance during the last fiscal year and such compensation. The Compensation
Committee notes that except in its capacity as Plan Administratorproposed amendment of the Company's Incentive Stock Option Plan (1982) (the "ISO Plan"), the Company's
Stock Option Plan (1992) (the "1992 Plan")Certificate of Incorporation and the
Company's Stock Option Plan
(1993) (the "1993 Plan"), the Committee does not establish compensation for the
Named Executive Officers (or any other executive officertwo-for-one stock split of the Company) except
the Chief Executive Officer and the President. Except for stock option grants,
the compensation of the Company's executive officers (including the Named
Executive Officers other than the Chief Executive Officer and the President) is
determined by the Chief Executive Officer and the President in their sole
discretion.
The Chief Executive Officer's and the President's aggregate compensation is
comprised of three principal components: base salary, bonus and stock options.
While the Committee does not review any particular quantitative issues in
establishing the Chief Executive Officer's and the President's base salary
specifically and total compensation generally, the Committee does consider two
principal factors which are evenly weighted in its deliberations: (1)
performance of the Company measured by the long-term growth of the Company's
income; and (2) the roles of the Chief Executive Officer and the President in
achieving the Company's performance. Although the Committee has not reviewed any
compensation surveys relating specifically to chief executive officer and
president salaries, the Committee believes that each of the Chief Executive
Officer's and the President's base salary appropriately reflects the
satisfactory long-term performance of the Company and each of their roles in the
Company's performance and is competitive with the salaries of their counterparts
at other companies of similar size and history (although such other companies
are not necessarily companies which are represented in the indexes described
under the caption "Performance Graph" on page 9 herein).
In 1994, the Company announced a new five-year plan (the "Strategic Plan").
The Board of Directors approved the Strategic Plan, which anticipated an initial
reduction in earnings and a subsequent increase in earnings and share value
above the level which would be expected in the absence of the Strategic Plan.
Because of the anticipated reduction in earnings, the Committee determined that
the prior method of calculating the bonus portion of the compensation package
for the Chief Executive Officer and President did not accurately measure the
performance of the Company during at least the initial period of the Strategic
Plan. As a result, the Committee determined it would base bonus compensation for
1994 and 1995 directly on certain quantitative elements of the Company's
performance as measured against the Strategic Plan. The most important, in terms
of relative weighting, of these elements are: the effective price per gallon,
the production and distribution cost per gallon and the retail products volume.
Under the new policy, a bonus (equal to 25% of the officer's base salary) is
awarded if based upon the quantitative elements the Company has achieved 80% of
the anticipated results of the Strategic Plan. The bonus award is increased (up
to a maximum of 50% of base salary), calculated by linear interpolation, if
based upon the quantitative elements the Company has
11Common Stock.
8
16
achieved more than 80% and up to 100% of the anticipated results of the
Strategic Plan.13
(D) EFFECTIVE DATE OF PROPOSED AMENDMENT AND ISSUANCE OF SHARES FOR STOCK SPLIT
If the Company achieves more than 100% of the anticipated
results of the Strategic Plan, the maximum potential bonus of 50% of base salary
would be awarded. The Committee believes that this new policy for determining
bonuses more accurately ties the Chief Executive Officer's and the President's
compensationproposed amendment to the performanceCertificate of the Company by acknowledging the effects of
the Strategic Plan upon the long-term earnings of the Company.
In awarding options under the ISO Plan, the 1992 Plan and the 1993 Plan,
the Committee has adopted a policy pursuant to which each year (1) Messrs.
Rogers and Cronk will receive options to purchase the Company's Common Stock
with a current market value equal to three times annual base salary, (2) all
other Named Executive Officers (and the other vice president of the Company)
will receive options to purchase the Company's Common Stock with a current
market value equal to two times the average annual base salary of vice
presidents of the Company, and (3) approximately eighteen executive staff
members will receive options to purchase the Company's Common Stock with a
current market value equal to the average annual base salary of executive staff
members. The option grant sizes included in the Committee's policy are
competitive with a broad general industry sampling according to a 1993 survey of
competitive practice in 275 diversified companies received from the Company's
compensation consultants (which survey included some companies which are
represented in the indexes described under the caption "Performance Graph" on
page 9 herein). The stock option grants in 1994 are consistent with the
Committee's stated policies.
The Committee has also adopted a policy whereby key executive employees of
the Company and its subsidiaries may, at the Committee's discretion, be offered
the opportunity to receive options in lieu of current cash compensation,
including bonuses, for options to purchase shares of the Company's Common Stock
(the "Income Swap Plan"). Options granted in exchange for cash compensation are
non-qualified and may be granted under either the 1992 Plan or the 1993 Plan.
The exchange ratio used to determine the proper number of shares to be subject
to such options is based on the Black-Scholes valuation method. The exercise
price of options granted under the Income Swap Plan is set at the current fair
market value of the Company's Common Stock as of the date of grant. The vesting
of options granted by the Committee under the Income Swap Plan depends on
whether the options are granted under the 1992 Plan or the 1993 Plan. Options
granted under the 1992 Plan vest as follows: The options granted begin vesting
two years from the date of grant and may be exercised only as to 40% of the
optioned shares after two years from the date of grant and as to an additional
20% after each of the succeeding three years. Options granted under the 1993
Plan in connection with the Income Swap Plan vest six months from the date of
grant (See also footnote 2 to the table titled "Option Grants in the Last Fiscal
Year" on page 7 herein). Options granted under the Income Swap Plan are
exercisable for cash or by exchanging previously-acquired shares of Common Stock
of the Company. Further, any tax withholding requirement can be satisfied
through surrender of additional shares previously acquired by the employee.
Options granted under the 1993 Plan in connection with the Income Swap Plan may
have a "reload" feature which would result in the option holder receiving, upon
the exercise of such option, a "reload" grant equal to the number of shares of
Common Stock utilized to pay the exercise price and/or tax withholdings. If
granted, the "reload" options will have an exercise price equal to the fair
market value of the Company's Common Stock on the date of grant of the reload
option and an exercise term equal to the remaining term of the option exercised.
In addition to receiving future options which may be granted, a new
executive staff member may be awarded extra option grants when he or she assumes
the new position. In making such an extra award, the Committee has, to date,
honored the employment arrangements negotiated by management in hiring a new
executive staff member. All option grants are made at the fair market value or
higher of the Company's shares at the date of grant and are generally made
subject to a five-year vesting period. No stock options were granted in 1994
pursuant to this policy.
Pursuant to Internal Revenue Code (the "Code") Section 162(m), for tax
years beginning on or after January 1, 1994 publicly-held corporations, subject
to certain exceptions, may no longer deduct that amount of compensation paid to
an individual in excess of $1 million. The SEC requires a statement of the
Compensation Committee's policy with respect to Code Section 162(m). To date, no
employee of the Company has been paid compensation in excess of $1 million that
would be subject to the Code Section 162(m) limitation. Therefore, the Committee
has not formulated a policy with respect to Code Section
12
17
162(m). The Committee will address the issues presented by Code Section 162(m)
at such time as an employee or employeesIncorporation of the
Company is likely to be paid
compensation in excessadopted by the required vote of $1 million that would be subject tostockholders, it will become
effective on October 30, 1997, which will become the Code Section
162(m) limitation. The Committee notes that performance-based compensation in
excess of $1 million is one exception torecord date for the
compensation deductibility rules.
The Committee has been advised that the termsdetermination of the Company's stock option
plans in conjunction withowners of Common Stock entitled to certificates
representing the manner in which it awards stock options under such
plans excepts such awards from the limitation on deductibility imposed by Code
Section 162(m).
The Committee notes that generally executive officers granted options will
only realize value to the extent the fair market value of the Company's stock
increases after the date of grant. The Committee believes that this furthers the
Committee's goal of aligning management's interests with those of the Company's
stockholders.
THE COMPENSATION COMMITTEE
Timm F. Crull
Merril M. Halpern
Jerome L. Katz
John W. Larson
Edmund R. Manwell
Anthony J. Martino
Jack O. Peiffer
The foregoing Compensation Committee Report on Executive Compensation shall
not be deemed to be incorporated by reference into any filing of the Company
under the Securities Act of 1933 or the Securities Exchange Act of 1934, except
to the extent that the Company specifically incorporates such information by
reference.
(THIS SPACE INTENTIONALLY LEFT BLANK)
13
18
BOARD OF DIRECTORS
COMMITTEES OF THE BOARD
Committees of the Board of Directors are the following:
Compensation Committee
The Compensation Committee is composed of seven directors, six of whom are
not employees of the Company in any capacity and a seventh member, Mr. Manwell,
who serves as the Secretary of the Company. Mr. Manwell's relationship with the
Company is further described under the caption "Compensation Committee
Interlocks and Insider Participation" on pages 10-11 herein. The Committee makes
recommendations to the Board of Directors with respect to the salaries and
bonuses and other forms of remuneration to be paid to the Chief Executive
Officer and the President and the terms and conditions of their employment. In
addition, the Committee is the Administrator of the Company's Incentive Stock
Option Plan (1982), the Company's Section 423 Employee Stock Purchase Plan
(1990), the Company's Employee Secured Stock Purchase Plan (1990), the Company's
Stock Option Plan (1992) and the Company's Stock Option Plan (1993).
Audit Committee
The Audit Committee is identical in composition to that of the Compensation
Committee. The Committee meets on the call of any member and, on at least one
occasion each year, it meets with the independent auditors to discuss: (1) the
scope of the audit engagement; (2) the results of each annual audit and the
financial statements and notes included in the Company's Annual Report to the
Stockholders; and (3) other matters pertaining to the audit, including the
Company's accounting policies and internal controls. The Committee is also
responsible for recommending for appointment by the Board of Directors, subject
to submission to the stockholders for their approval, independent public
accountants to audit the Company's financial statements, as well as advising the
Board of Directors with respect to the scope of the audit, the Company's
accounting policies and internal controls.
The purpose and function of the Audit Committee is to review and monitor
the Company's financial reports and accounting practices, as well as to provide
the means for direct communication among the Company's Board of Directors, its
financial management and external auditors.
The Committee is concerned with the accuracy and completeness of the
Company's financial statements and matters that relate to them. However, the
Committee's role does not contemplate providing to stockholders, or others,
special assurances regarding such matters. Moreover, the Committee's role does
not involve the professional evaluation of the quality of the audit conducted by
the independent auditors. While it is believed that the Committee's activities
are beneficial because they provide an ongoing oversight on behalf of the full
Board of Directors, they do not alter the traditional roles and responsibilities
of the Company's management and independent auditors with respect to the
accounting and control functions and financial statement presentation.
Messrs. Crull, Halpern, Katz, Larson, Manwell, Martino and Peiffer are
members of both the Compensation and Audit Committees.
The Company has no nominating committee.
BOARD OF DIRECTORS ATTENDANCE
During fiscal 1994, there were six special meetings of the Board of
Directors and all directors attended each meeting occurring while such director
was a member of the Board of Directors except Mr. Peiffer who was absent from
one meeting. The Compensation Committee met five times and the Audit Committee
met twice. Except as set out hereinafter, all members of the committees attended
each of the meetings of the respective committee on which they sit occurring
while such person was a member of the committee in
14
19
question: Messrs. Larson and Peiffer were each absent from one meeting of the
Compensation Committee; and Messrs. Katz and Peiffer were each absent from one
meeting of the Audit Committee.
COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934
Section 16(a) of the Securities Exchange Act of 1934 requires the Company's
officers and directors, and persons who own more than ten percent of a
registered class of the Company's equity securities, to file reports of
ownership and changes in ownership with the Securities and Exchange Commission.
Officers, directors and greater than ten-percent stockholders are required by
SEC regulation to furnish the Company with copies of all Section 16(a) forms
they file.
Based solely on its review of the copies of such forms received by it, or
written representations from certain reporting persons that no Forms 5 (required
by Section 16(a) in the event of failure to comply with certain filing
requirements) were required for those persons, the Company believes that during
fiscal 1994 its officers, directors, and greater than ten-percent beneficial
owners complied with all applicable filing requirements.
CERTAIN TRANSACTIONS
On June 14, 1994, the Company entered into an agreement with Nestle Ice
Cream Company ("NICC"), an affiliate of Nestle Holding, Inc., to distribute in
certain markets frozen novelty and ice cream products manufactured by or for
NICC (the "NICC Products"). The Company purchases the NICC Products in the
ordinary course of business and at prices consistent with those offered to other
distributors.
Any business relationships existing between any of the nominees or
continuing directors and the Company are described under the Caption
"Compensation Committee Interlocks and Insiders Participation" on pages 10-11
herein.
(THIS SPACE INTENTIONALLY LEFT BLANK)
15
20
MATTERS SUBMITTEDadditional shares.
PLEASE DO NOT DESTROY YOUR PRESENT STOCK CERTIFICATES OR SEND THEM TO THE
VOTECOMPANY OR THE TRANSFER AGENT. IF THE PROPOSED AMENDMENT IS ADOPTED, YOUR
CERTIFICATES WILL REMAIN VALID FOR THE NUMBER OF STOCKHOLDERS
ELECTIONSHARES SHOWN ON THEM, AND
SHOULD BE CAREFULLY PRESERVED BY YOU. THE COMPANY ANTICIPATES THAT THE
ADDITIONAL SHARES TO WHICH YOU ARE ENTITLED WILL BE DISTRIBUTED ON OR ABOUT
NOVEMBER 21, 1997 BY DELIVERY OF DIRECTORS
General
Under the Company's By-Laws and Certificate of Incorporation, the Board of
Directors consists of nine (9) directors and is divided into three classes, with
each class having a term of three years. The directors of Class I will be
elected at the 1995 Annual Meeting of Stockholders and will hold office until
the 1998 Annual Meeting of Stockholders or until their successors are elected
and qualified. Unless otherwise directed, the persons named in the enclosed form
of proxy will vote such proxy for the election of Merril M. Halpern, John W.
Larson and Jack O. Peiffer, each of whom has consented to be named as such and
to serve if elected. In case any of Messrs. Halpern, Larson or Peiffer becomes
unavailable for election or declines to serve for any unforeseen reason, an
event management does not anticipate, the persons named in the proxy will have
the right to use their discretion to vote for a substitute. The nominees
constitute Class I of the Board of Directors with each of their terms expiring
as of the date of this annual meeting. No family relationship exists between any
nominee and any of the other directors. Any business relationships existing
between any of the nominees or continuing directors and the Company are
described under the caption "Compensation Committee Interlocks and Insider
Participation" on pages 10-11 herein.
The following brief statements contain biographical information about the
nominees and the years they first became directors.
NOMINEE
YEAR FIRST ELECTED A DIRECTOR
AGE PRINCIPAL OCCUPATION AND OTHER INFORMATION
- ----------------------------- ------------------------------------------------------------------
Merril M. Halpern............ CHAIRMAN AND CO-CHIEF EXECUTIVE, CHARTERHOUSE GROUP INTERNATIONAL,
1977 INC. Mr. Halpern has served on the Company's Board of Directors
Age: 60 since its incorporation in 1977. Since October 1984, Mr. Halpern
has served as Chairman of the Board of Charterhouse Group
International, Inc. ("Charterhouse"), a privately-held company
which specializes in leveraged buyouts and turn-arounds. From
1973 to October 1984, he served as Charterhouse's President and
Chief Executive Officer. Mr. Halpern is also a director of
Charter Power Systems ("Charter Power"), a manufacturer of
battery power systems and their components, Del Monte
Corporation, a processed foods company, and of Insignia
Financial Group, Inc., a fully integrated real estate service
organization.
John W. Larson............... PRIVATE INVESTOR. Mr. Larson joined the Company's Board of
1993 Directors in 1993. From 1989 to early 1993, Mr. Larson served as
Age: 57 Chief Operating Officer of The Chronicle Publishing Company, a
privately-held, diversified media company. From 1984 to 1989,
Mr. Larson was a General Partner of J.H. Whitney & Co., a
venture capital and buyout firm. Prior to joining J.H. Whitney,
Mr. Larson was the Managing Director of the San Francisco office
of McKinsey & Company, Inc.
Jack O. Peiffer.............. RETIRED SENIOR VICE PRESIDENT -- CORPORATE HUMAN RESOURCES,
1993 GENERAL ELECTRIC COMPANY. Mr. Peiffer joined the Company's Board
Age: 61 of Directors in 1993. Mr. Peiffer was employed by GE Company for
over 38 years and held a variety of financial and general
management positions prior to his appointment as senior vice
president, including acting as Vice President and General
Manager of GE Supply Company from November 1983 to January 1985.
Continuing Directors
Directors Timm F. Crull, Jerome L. Katz and Edmund R. Manwell ("Class II")
will hold office until the 1996 Annual Meeting of Stockholders. Directors T.
Gary Rogers, William F. Cronk, III and Anthony J. Martino ("Class III") will
hold office until the 1997 Annual Meeting of Stockholders.
16
21
The following brief statements contain biographical information about each
continuing director and the year he first became a director.
NAME
YEAR FIRST ELECTED A DIRECTOR
AGE PRINCIPAL OCCUPATION AND OTHER INFORMATION
- ----------------------------- ------------------------------------------------------------------
T. Gary Rogers............... CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER, DREYER'S GRAND
1977 ICE CREAM, INC. Mr. Rogers has served as the Company's Chairman
Age: 52 of the Board and Chief Executive Officer since its incorporation
in February 1977.
William F. Cronk, III........ PRESIDENT, DREYER'S GRAND ICE CREAM, INC. Mr. Cronk has served on
1977 the Company's Board of Directors since its incorporation in
Age: 52 1977. Since April 1981, he has served as the Company's
President.
Timm F. Crull................ RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NESTLE USA, INC.
1995 Mr. Crull joined the Company's Board of Directors in 1995. Mr.
Age: 64 Crull became Chairman and Chief Executive Officer of Nestle USA,
Inc. in 1991, after having served since 1985 as President and
Chief Executive Officer of Carnation Company, a Nestle
subsidiary. He retired from his positions with Nestle in 1994.
Mr. Crull is also a director of Smart & Final Inc., a department
store chain, and of BankAmerica Corporation, a bank holding
company.
Jerome L. Katz............... PRESIDENT AND CO-CHIEF EXECUTIVE, CHARTERHOUSE GROUP
1977 INTERNATIONAL, INC. Mr. Katz has served on the Company's Board
Age: 61 of Directors since its incorporation in 1977 until April 1981
and was re-elected to the Board in June 1981. Since October
1984, he has served as President of Charterhouse. From 1973 to
1984 Mr. Katz served as Executive Vice President of
Charterhouse. Mr. Katz is also a director of Charter Power and
of Cryenco Sciences, Inc., a manufacturer of sophisticated
leak-tight containment systems.
Edmund R. Manwell............ PARTNER, MANWELL & MILTON, GENERAL COUNSEL TO THE COMPANY. Mr.
1981 Manwell has served as Secretary of the Company since its
Age: 52 incorporation in 1977 and as a director of the Company since
April 1981. Mr. Manwell is a partner in the law firm of Manwell
& Milton, general counsel to the Company. Mr. Manwell is also a
director of Hanover Direct, Inc., a direct marketing company.
Anthony J. Martino........... RETIRED EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, NESTLE
1994 USA, INC. Mr. Martino joined the Company's Board of Directors in
Age: 59 1994. Mr. Martino retired from his position as Executive Vice
President, Chief Financial Officer of Nestle USA, Inc. after
having served Nestle in various positions for 21 years,
including acting as Senior Vice President, Finance of Nestle
Enterprises, Inc.
APPROVAL OF INDEPENDENT PUBLIC ACCOUNTANTS
Price Waterhouse LLP has been appointed to be the Company's independent
public accountants for the fiscal year ending December 30, 1995, and were the
independent public accountants for the Company during the fiscal year ended
December 31, 1994.
The appointment of independent public accountants is made annually by the
Board of Directors and is subsequently submitted by them to the stockholders for
approval. The decision of the Board of Directors is, in turn, based upon the
recommendation of the Audit Committee of the Board of Directors. In making its
recommendations, the Audit Committee reviews both the audit scope and estimated
audit fees for the coming year. In addition, the Audit Committee reviews the
types of professional services provided by Price Waterhouse LLP to determine
whether the rendering of such services would impair the independence of Price
17
22
Waterhouse LLP. Should stockholder approval not be obtained, the Board of
Directors will consider it a directive to select and retain other independent
public accountants.
A representative or representatives of Price Waterhouse LLP will be present
at the stockholders' meeting and will be afforded an opportunity to make a
statement if they so desire and will be available to respond to questions raised
orally at the meeting.PHYSICAL CERTIFICATES THROUGH THE MAIL.
THE BOARD OF DIRECTORS RECOMMENDS THE APPROVAL OF PRICE WATERHOUSE LLP AS
THE COMPANY'S INDEPENDENT PUBLIC ACCOUNTANTS FOR THE 1995 FISCAL YEAR AND
THEREAFTER UNTIL A SUCCESSOR IS APPOINTED.VOTE "FOR" THIS PROPOSAL.
VOTING INFORMATION
GENERAL VOTING INFORMATION
A stockholder may with respect to the election of directors (i) vote for
the election of all the director nominees named herein, or (ii) withhold
authority to vote for the director nominees or (iii) vote for the election of
any of such director nominees and against any of the other director nominee(s)
by so indicating on the proxy. Withholding authority to vote for a director
nominee will not prevent such director nominee from being elected. A stockholder
may, with respect to each other matter specified in the notice of the meeting
(i) vote "FOR" the matter,proposal, (ii) vote "AGAINST" the
matterproposal or (iii) "ABSTAIN" from voting on the matter. Abstention from voting on a matter may have the legal
effect of a vote against such matter.proposal. Shares will be voted as
instructed in the accompanying proxy on each matterthe proposal submitted to stockholders.
If there are no instructions from the stockholder on an executed proxy, the
proxy will be voted as recommended by the Board of Directors. WhenShares cannot be
voted unless a signed proxy card is returned or other specific arrangements are
made to have shares represented at the meeting.
Abstentions and broker is not permitted to vote stock held in street name on certain
mattersnon-votes are each included in the absence of instructions from the beneficial ownerdetermination of
the stock
and so indicates that it isnumber of shares present for quorum purposes. Abstentions are counted in
tabulations of votes cast on proposals presented to stockholders. While not
voting certain stock on anycounted as votes for or all matters onagainst a proposal, abstentions have the proxy, the shares whichsame effect as
votes against a proposal. Broker non-votes are not being voted with respect to a particular
matter (the "non-voted shares") will be considered shares not present and
entitled to vote on such matter, although such shares may be considered present
and entitled to vote for other purposes and will countcounted for purposes of
determining the presence ofwhether a quorum. (Shares voted to abstain as to a
particular matter will not be considered non-voted shares.) Approval of each
matter specified in the Annual Meeting notice requires theproposal has been approved.
VOTES REQUIRED FOR APPROVAL
The affirmative vote of either a majority or a plurality of the outstanding shares of Common
Stock, including the shares of Common Stock present in person
or by proxy atinto which the outstanding shares of
Series B Convertible Preferred Stock are convertible on the record date for the
meeting, is required to approve the proposal to amend the Company's Certificate
of Incorporation and entitled to vote on such matter. Accordingly,
non-voted shares with respect to such matters will not affecteffect the determination
of whether such matters are approved or the outcometwo-for-one split of the election of
directors.
VOTES REQUIRED FOR APPROVAL
Election of Directors: PluralityCommon Stock of the
votes of the shares of Common Stock
present in person or by proxy and entitled to vote at the meeting.
Approval of Price Waterhouse LLP as independent public accountants:
Majority of the shares of Common Stock present in person or by proxy and
entitled to vote at the meeting.Company.
PROPOSALS OF STOCKHOLDERS
The 19961998 Annual Meeting of Stockholders will be held on or about May 8,
1996.13,
1998. Proposals of stockholders intended to be presented at the 19961998 Annual
Meeting must be received by the Secretary, Dreyer's Grand Ice Cream, Inc., 5929
College Avenue, Oakland, California 94618 no later than December 8, 1995.
181, 1997.
9
2314
OTHER MATTERS
The management knows of noNo other business towill be presentedtransacted at the meeting.
If other matters do properly come before the meeting, it is intended that the
proxy holders will vote on them in accordance with their best judgment.
By Order of the Board of Directors,
EDMUND R. MANWELL
Secretary
DREYER'S GRAND ICE CREAM, INC.
Oakland, California
April 5, 1995
19September 16, 1997
10
2415
COPIES OF DREYER'S GRAND ICE CREAM, INC.'S 1996 FORM 10-K REPORT,
A CORPORATE OPERATIONAL AND FINANCIAL REPORT
FILED ANNUALLY WITH THE
SECURITIES AND EXCHANGE COMMISSION,
ARE AVAILABLE WITHOUT CHARGE BUT WITHOUT EXHIBITS
FOR THOSE STOCKHOLDERS WHO WISH TO HAVE MORE DETAILED INFORMATION
ABOUT THE COMPANY.
If you would like a copy, or have any other inquiries about the Company or
your stockholder account, please write to:
WILLIAM C. COLLETT
TREASURER
DREYER'S GRAND ICE CREAM, INC.
5929 COLLEGE AVENUE
OAKLAND, CALIFORNIA 94618
(LOGO)printed on recycled paper
2516
APPENDIX A
FORM OF AMENDMENT
OF
CERTIFICATE OF INCORPORATION
RESOLVED, that Article FIFTH, Paragraph A of this corporation's Certificate
of Incorporation be amended to read in its entirety as follows:
"(A) The Corporation is authorized to issue two classes of shares to be
designated, respectively, "Preferred Stock" and "Common Stock." The number
of shares of Preferred Stock authorized to be issued is Ten Million
(10,000,000) and the number of shares of Common Stock authorized to be
issued is Sixty Million (60,000,000). The stock, whether Preferred Stock or
Common Stock, shall have a par value of $1.00 per share.
Each share of Common Stock of the Corporation issued and outstanding
immediately prior to the close of business on October 30, 1997, that being
the time when the amendment of this Article FIFTH, Paragraph A of the
Certificate of Incorporation shall have become effective, shall be
subdivided and changed and converted into two fully paid and nonassessable
shares of Common Stock, par value $1.00 per share, of the Corporation, and
at the close of business on such date, each holder of record of Common
Stock shall, without further action, be and become the holder of one
additional share of Common Stock for each share of Common Stock held of
record immediately prior thereto. Effective at the close of business on
such date, each certificate representing shares of Common Stock outstanding
immediately prior to such time shall continue to represent the same number
of shares of Common Stock and as promptly as practicable thereafter, the
Corporation shall issue and cause to be delivered to each holder of record
of shares of Common Stock at the close of business on such date an
additional certificate or certificates representing one additional share of
Common Stock for each share of Common Stock held of record immediately
prior thereto."
17
DREYER'S GRAND ICE CREAM, INC.
PROXY SOLICITED BY THE BOARD OF DIRECTORS FOR THE
1995
ANNUALSPECIAL MEETING OF STOCKHOLDERS ON
OCTOBER 23, 1997
The undersigned hereby appoints T. GARY ROGERS, WILLIAMGary Rogers, William F. CRONK,Cronk, III and EDMUNDEdmund
R. MANWELL,Manwell, or any one of them, each with power of substitution and revocation, as
the proxy or proxies of the undersigned to represent the undersigned and vote
all shares of Common Stock, $1.00 par value, of DREYER'S GRAND ICE CREAM, INC.,
which the undersigned would be entitled to vote if personally present at the
AnnualSpecial Meeting of Stockholders of DREYER'S GRAND ICE CREAM, INC., to be held at
Claremont Resort Hotel,the offices of the Company, 5929 College Avenue, Oakland, California, at 2:00
p.m. on Wednesday, May 10, 1995,Thursday, October 23, 1997, and at any postponements or adjournments
thereof, upon the following matters:
1. The election of 3 Class I directors.
FOR all the nominees FOR all nominees except WITHHOLD AUTHORITY to vote
listed below / / as crossed out below / / for the nominees listed below / /
Instruction: To withhold authority for any individual nominee, cross out the
nominee's name in the list below:
Merril M. Halpern John W. Larson Jack O. Peiffer
2. The approval of Price Waterhouse LLP as the Company's independent
public accountants for fiscal year 1995.
FOR / / AGAINST / / ABSTAIN / /
3. With discretionary authority on such matters as may properly come
before the meeting.
THE SHARES COVERED BY THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE CHOICES
MADE. WHEN NO CHOICE IS MADE, THIS PROXY WILL BE VOTED FOR THE LISTED NOMINEES
FOR DIRECTOR AND FOR PROPOSAL 2.matter:
(Continued, and to be signed, on reverse side)
26
(Continued from other side)
The Annual18
1. The amendment of the For Against Abstain THE SHARES COVERED BY THIS PROXY
Certificate of Incorporation of [ ] [ ] [ ] WILL BE VOTED IN ACCORDANCE WITH
the Company to increase the number THE CHOICE MADE. WHEN NO CHOICE
of authorized shares of Common IS MADE, THIS PROXY WILL BE VOTED
Stock of the Company from thirty FOR PROPOSAL 1.
million (30,000,000) to sixty
million (60,000,000) and to effect The Special Meeting of Stockholders
a two-for-one stock split of the may be held as scheduled only if a
Common Stock. majority of the shares outstanding
are represented at the meeting by
attendance or proxy. Accordingly,
please complete this proxy and return
it promptly in the enclosed
envelope.
Signature(s)___________________________________________________________________
Dated______________________________________, 1997
Please date and sign exactly as your name(s) appears on your shares. If signing
for estates, trusts, or corporations, title or capacity should be stated. If
shares are held jointly, each holder should sign.
-------------------------
-------------------------
Signature of
Stockholder(s)
Dated , 1995.