ACQUISITION AGREEMENT AND
PLAN OF TAX-FREE REORGANIZATION
This agreement and plan dated as of the 1st day of October, 1997, by and
among COMAR FOODS, INC. (the "Target"), an Alabama corporation, and XXXXX X.
XXXXXXX AND XXXXX X. XXXXXXX, XX. (being all of the shareholders of Target),
INTERNATIONAL CUSTOM PACK, INC. (the "Parent", whose symbol is "IPCK" in the OTC
market), a Mississippi corporation; XXXXX XXXXXXXXX and XXXX XXXXXXXXX; and X.
X. XXXXXXX;
W I T N E S S E T H :
WHEREAS, Target is the owner of all of the assets (the "Assets") listed on
Target's list of assets as of September 30, 1997 (copy of which is marked
Exhibit "A", attached hereto and made a part hereof by this reference), subject
to the liabilities (the "Liabilities") set forth on Exhibits "X-x", "B-2" and
"B-3", attached hereto and made a part hereof by this reference; and
WHEREAS, Parent desires to acquire all of the issued and outstanding stock
of Target (owned 50% by Xxxxx X. Xxxxxxx and 50% by Xxxxx X. Xxxxxxx, Xx.) in
exchange for voting common stock of Parent;
WHEREAS, the Target shareholders are willing to indemnify Parent for
certain liabilities, with X. X. Xxxxxxx joining in, and Xxxxx Xxxxxxxxx and Xxxx
Xxxxxxxxx are willing to guarantee certain other liabilities; and
WHEREAS, the parties desire that such exchange and matters ancillary
thereto be upon the terms, conditions and plan hereinafter contained;
NOW, THEREFORE, in consideration of the premises and the mutual agreements
of the parties set forth herein, it is hereby agreed as follows:
1. TARGET STOCK. Target's shareholders shall deliver at closing (the "Closing"
hereinafter described) to Parent all of the issued and outstanding stock of
Target, free and clear of all liens and encumbrances (except for the Alabama
Assessment of Share Tax), with each certificate properly endorsed to Parent or
with appropriate stock
1
powers attached. Target's attorney, Xxxxxx X. Xxxxxxx, Xx., shall hold said
stock pending delivery of Parent stock below. When Parent stock is so delivered,
Xxxxxxx shall release the Target stock to Parent.
2. CONSIDERATION. The aggregate consideration for the exchange is $1,500,000.00
of value (plus an assumption of equipment leases), computed as follows:
(a) $300,000.00 OF VALUE: Parent shall contribute to Target $300,000.00
($120,000.00 of which shall be cash at Closing and the $180,000.00 balance of
which shall be provided at the rate of $30,000.00 per month during the six (6)
months next after Closing, the first such payment to be made on October 31,
1997, and a like payment on the last day of each of the succeeding five months
thereafter), to be applied against the Liabilities as follows:
(i) With said $120,000.00, Target shall pay and satisfy at Closing
those Liabilities listed on said Exhibit B-1 (the checks to be made and
mailed at closing); and
(ii) Parent shall assume at Closing those Liabilities listed on said
Exhibit B-2, and Target shall pay and satisfy them with said $180,000.00
over said six (6)-month period (the order and priority of payment, if any,
being set forth on said Exhibit B-2);
(b) $266,289.74 OF VALUE: Parent shall assume at Closing those liabilities
listed on said Exhibit B-3 (the Xxxxxxx mortgage and the KBK debt), and shall
cause Target to pay and satisfy them according to their respective terms,
without any extension or amendment;
(c) BALANCE OF VALUE: The remaining $933,710.26 of value is composed of the
following:
(i) To Xxxx Xxxxxxxxx, at Closing, as payment for commission due on
sale, 13,574 shares of the voting common stock of Parent, with Parent's
stock valued at $2.21 per share (net of all discounts);
2
(ii) To Xxxxx Xxxxxxx at Closing, in exchange for the Target stock
described in Section 1 above, 113,122 shares of the voting common stock of
Parent with the Parent's stock valued at $2.21 per share (net of all
discounts); and
(iii) To Xxxxx X. Xxxxxxx at Closing, in exchange for the part of his
indebtedness remaining unpaid to him net of the Exhibit B-2 payments to be
made to him above, and also for Xxxxxxx'x Target stock, 295,796 shares of
the voting common stock of Parent with the Parent's stock valued at $2.21
per share (net of all discounts).
All of said stock shall be (1) validly issued, fully paid and non-assessable,
and countersigned by Parent's transfer agent, Fidelity Transfer Co., and (2)
unrestricted and freely transferrable except for the following legend:
This certificate is transferrable only in compliance with
SEC Rule 144 or an applicable statutory exemption in the
1933 Securities Act or an appropriate investment letter from
a proposed transferee.
Pursuant to the Plan of Reorganization, such Parent stock is being distributed
to Xxxxx X. Xxxxxxx (on said remaining part of his debt) and to the shareholders
of Target (with respect to their stock in Target), in accordance with the above.
(Exhibits "C" and "D" are hereby deleted.)
PROVIDED, HOWEVER, if for any reason the aggregate liabilities in Subparagraph
(a) ($300,000.00 of value) and Subparagraph (b) ($266,289.74 of value) total
less than $566,289.74 at Closing, then the number of shares of voting common
stock under Subparagraph (c) ($933,710.26 of value) shall be increased by the
difference between $566,289.74 and such lesser total, valuing such stock at
$2.21 per share for this purpose, such additional stock to be distributed to
Xxxxx X. Xxxxxxx.
(d) LEGAL AND ACCOUNTING FEES. Target's legal and accounting fees,
$7,400.00 to Xxxxxx X. Xxxxxxx, Xx. and $3,420.00 to Crow & Xxxxxxx, shall be
listed on said Exhibit B-1 and paid in cash at Closing as part of said
$120,000.00.
(e) EQUIPMENT LEASES. In addition to said $1,500,000.00 of value, Parent
shall assume and agree to pay and perform in accordance with their respective
3
terms the equipment leases of Target listed on Exhibit "E", attached hereto and
made part hereof by this reference.
(f) RELEASES. Set forth on Exhibit "F" is a list of such of the Liabilities
and leases as to which Target and its shareholders are due to be released from
liability. Parent agrees to cooperate in obtaining such releases after the
assumptions of such as provided in this agreement are reflected on the books and
records of the respective creditors or leasors.
3. TAX-FREE REORGANIZATION. The parties have structured and planned this
transaction to be a tax-free "Reorganization" under I.R.C. ss.368, and the
parties shall each consistently report the transaction as such to the Internal
Revenue Service and the appropriate state taxing authorities. Without limiting
the foregoing, Target shall, at its own cost and expense, prepare and file the
appropriate so-called "ss.368 attachments" to its final income tax return, and
Parent shall account for the transaction as a tax-free reorganization and carry
the Assets at their respective values shown on said Exhibit A, without any
write-up whatsoever, whether or not Target becomes a member of a consolidated
group for federal income tax purposes. In view of the foregoing, no I.R.C.
ss.1060 allocation has been made, since no taxable purchase and sale is to
occur.
4. RESTRICTED STOCK/REGISTRATION RIGHTS. The Parties understand and agree that
the voting common stock of Parent to be delivered to Target's shareholders and
to Xxxxx X. Xxxxxxx with respect to his debt at Closing is so-called
"restricted" stock under the 1933 Securities Act, and absent registration of
such stock, Target's stockholders (and Xxxxx X. Xxxxxxx with respect to his
Parent stock received for indebtedness) will only be able to sell said stock
pursuant to Rule 144 or a statutory exemption (e.g., ss.4(b) of the 1933
Securities Act). Parent agrees to remain current in its 1934 Securities Act
("Exchange Act") filings, if and when Parent becomes subject to such Act.
If there are any registration statements filed after the one referenced in
paragraph 5 hereof, then Target's shareholders (and Xxxxx X. Xxxxxxx with
respect to his Parent stock received for indebtedness) shall have the right (but
not the obligation) to "piggyback" and participate in such to the extent of
422,492 shares of IPCK voting common stock (adjusted for any stock spits,
conversions and the like).
4
5. LACK OF A PUBLIC MARKET. Target's shareholders understand and agree that
there is an extremely limited public market for Parent's voting common stock at
the present time, such stock being "OTC BB". Parent agrees to use its best
efforts to file a registration statement with the SEC and make a public offering
to the end that, at a minimum, Parent's stock will be regularly listed at least
in the NASDAQ Supplemental List. However, Target's shareholders understand and
agree that there is no guarantee that such best efforts will be successful.
6. CLOSING. Closing shall take place at the offices of Crow & Xxxxxxx, on 0000
Xxxx Xxxx Xxxxx, Xxxxxx, Xxxxxxx, (or at such other location as the parties may
mutually agree) on or before October 1, 1997, but on a date and time within such
time frame on a regular business day an, at a regular business hour mutually
agreeable to the parties. For purposes of this agreement, the term "Closing"
shall mean the Closing described above.
7. INTERIM CONDUCT. Target agrees to take good care of the Assets prior to
Closing so that there will be no material adverse change in the title or
condition of the Assets pending Closing. In addition, Target shall not declare
any dividends or redeem any of its stock, shall attempt to maintain its
inventory in the ordinary and regular course, and shall continue to compensate
its employees in like manner as it has in the past.
8. GOVERNING LAW. This instrument shall be governed by and construed according
to the laws of the State of Alabama.
9. CAPTIONS. The captions in this instrument are for convenience of reference
only and shall not affect the construction or interpretation of this instrument.
10. BINDING EFFECT. This instrument shall bind and inure to the benefit of the
undersigned and their respective successors and assigns. Parent shall cooperate
in having X. X. Xxxxxxx and/or Xxxxx X. Xxxxxxx, Xx. reflected as transferee
owners of record of any of such stock given to them by Xxxxx X. Xxxxxxx, with
appropriate investment letters from such donees.
5
11. COUNTERPARTS. This instrument may be executed in any number of partial or
fully executed counterparts, each of which shall be deemed an original but all
of which shall constitute but one agreement.
12. CORPORATE GUARANTY. Comes now Parent and as a material inducement to Target
and its shareholders to execute and deliver this instrument, hereby guarantees
the payment and performance of the Liabilities (and said equipment leases) not
paid (or performed) in full at Closing. Said inducement, agreement and guarantee
shall survive the Closing.
13. PERSONAL GUARANTIES. Come now Xxxxx Xxxxxxxxx and Xxxx Xxxxxxxxx, and as a
material inducement to Target and its shareholders to execute and deliver this
instrument, hereby (1) guarantee, jointly and severally, the payment and
performance of the Xxxxxxx note and mortgage (described on Exhibit B-3) and (2)
agree, jointly and severally, to obtain and deliver to the Target shareholders,
within 120 days next after Closing, releases of the Target shareholders from all
liability (i) to KBK on account of the loan described on Exhibit B-3 and (ii) to
any lessors on account of the leases described on Exhibit E, failing any of
which releases under clauses "(i)" or "(ii)" above (which releases Xxxxx
Xxxxxxxxx and Xxxx Xxxxxxxxx agree to use their best efforts to obtain) within
said 120 days, Xxxxx Xxxxxxxxx and Xxxx Xxxxxxxxx shall jointly and severally
indemnify and hold harmless each of the Target shareholders from any and all
liability, loss, damage, cost and expense (including court costs and attorney's
fees) at any time arising from any or all of said Exhibit B-3 and Exhibit E
matters. Said inducement, guarantee, agreement to obtain releases and said
indemnities shall survive the Closing.
14. CLAIMS. (a) Parent shall give Xxxxx X. Xxxxxxx, X. X. Xxxxxxx and Xxxxx X.
Xxxxxxx, Xx. (the "Indemnitors") specific written notice if any claim is made or
litigation instituted against Target for which Parent in turn intends to make a
claim under this Section 14. Indemnitors shall have the right, to be exercised
within fifteen (15) days after the giving of such notice by Parent, to defend or
otherwise contest such claim or litigation against Target, and to prosecute
appeals in connection therewith, with counsel of their own choosing. Parent
agrees to reasonably cooperate in such defense, including giving Indemnitors
access to any records of Target helpful to such defense.
6
(b) Subject to the provisions of Section 14(c) below, if any such claim or
litigation is not disputed (or not successfully defended or contested, as the
case may be) by Indemnitors, then Indemnitors shall, within fifteen (15) days
after demand, pay the same, and jointly and severally agree to indemnify and
save Parent harmless in connection therewith.
(c) Anything contained elsewhere in this instrument to the contrary
notwithstanding, (1) Parent shall be entitled to make a claim against
Indemnitors only with respect to liabilities of Target which existed at or
before Closing and which have not been disclosed in Exhibits "B-1", "B-2",
"B-3", "E" or "F" of this instrument; and (2) no Indemnitor shall have any
liability to the extent that any claim is covered by insurance.
IN WITNESS WHEREOF, the corporate parties hereto have caused this
instrument to be executed and their corporate seals affixed by their respective
officers hereunder duly authorized, and the individual parties have hereunto set
their respective hands and seals, all as of the day and year first above
written.
COMAR FOODS, INC.
(AFFIX BY: /s/ Xxxxx X. Xxxxxxx, Xx.
CORPORATE -------------------------------
SEAL) AS ITS PRESIDENT
ATTEST:
BY: /s/ Xxxxx X. Xxxxxxx, Xx.
-------------------------
AS ITS SECRETARY
INTERNATIONAL CUSTOM PACK, INC.
(AFFIX BY: /s/ Xxxxx Xxxxxxxxx
CORPORATE -------------------------------
SEAL) AS ITS PRESIDENT
ATTEST:
BY: /s/ Xxxx Xxxxxxxxx
-------------------------
AS ITS SECRETARY
7
/s/ Xxxxx X. Xxxxxxx (SEAL)
-----------------------------
XXXXX X. XXXXXX
By: [ILLEGIBLE] as Attorney in Fact
/s/ Xxxxx X. Xxxxxxx, Xx. (SEAL)
-----------------------------
XXXXX X. XXXXXXX, XX.
/s/ X.X. Xxxxxxx (SEAL)
-----------------------------
X.X. XXXXXXX
/s/ Xxxxx Xxxxxxxxx (SEAL)
-----------------------------
XXXXX XXXXXXXXX
/s/ Xxxx Xxxxxxxxx (SEAL)
-----------------------------
XXXX XXXXXXXXX
8
Exhibit A
Cash -
Oper. Acct 1,176.94
P/R Acct. 109.97 1,286.91*
---------
Less EOM service charge
Acct. Rec. 6,666.50
Prepaid Insurance 979.35
Inventory 34,903.22
Land 22,500.00
Fixed Assets (Net) 168,585.48
Deposits -
Utilities 185.00
Leases 2,886.03 3,071.03
---------
All recipes, formulas, customers held by CoMar Foods.
Exhibit A
RUN DATE: 10/01/97 CoMar Foods, Inc. PAGE 1
RUN TIME: 12:14 PM
DETAIL TRIAL BALANCE
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT RANGE: 10301 TO 10301 PERIOD ENDING 09/30/97
---------ACCOUNT------------- -BEGINNING- --------------------------TRANSACTION----------------------- --ENDING--
NUMBER DESCRIPTION BALANCE DESCRIPTION DATE PP PE S REFERENCE AMOUNT BALANCE
====================================================================================================================================
10301 AmSouth - Operating 2,128.33
Deposit - Xxxxxxx 09/04 09 09 1 10.75
St. Elmo-Irvington Water 09/02 09 09 2 9909 54.32-
Integon National 09/02 09 09 2 9910 519.33-
HealthPlan Services 09/02 09 09 2 9911 290.32-
AmSouth Bank 09/03 09 09 2 9912 5.00-
Clarklift 09/03 09 09 2 9913 11.23-
Postmaster 09/04 09 09 2 9914 21.50-
CoMar Foods P/R Acct. 09/04 09 09 2 9915 3,525.00-
J & L Seafood 09/04 09 09 2 9916 220.00-
Xxxx Xxxxxx 09/04 09 09 2 9917 220.00-
Fruit Dist. 09/05 09 09 2 9918 163.67-
The Sheffield Fund 09/08 09 09 2 9919 463.00-
SAIA 09/08 09 09 2 9920 174.26-
Fruit Dist. 09/11 09 09 2 9921 363.48-
CoMar Foods P/R Acct. 09/11 09 09 2 9922 3,000.00-
CoMar Foods P/R Acct. 09/12 09 09 2 9923 1,100.00-
Xxxxxxxx Transport Lines 09/12 09 09 2 9925 288.52-
Mobile Gas Service 09/15 09 09 2 9926 174.76-
HRH Insurance 09/15 09 09 2 9928 535.00-
Restaurant News 09/15 09 09 2 9929 65.00-
KBK Financial, Inc. 09/15 09 09 2 D/M 4,136.00-
NET PAY 09/03 09 09 P 7,333.33-
09/17 09 09 A 1,799.42-
09/17 09 09 R 27,223.53-
09/29 09 09 R 12,682.64-
Sam's 09/16 09 09 2 9930 170.13-
Fruit Dist. 09/17 09 09 2 9931 361.95-
Postmaster 09/17 09 09 2 9932 10.75-
CoMar Foods P/R Acct. 09/18 09 09 2 9933 4,000.00-
Fruit Dist. 09/19 09 09 2 9934 331.80-
Capt. Xxxxxxx'x 09/19 09 09 2 9935 210.00-
Xxxx Paper 09/19 09 09 2 9936 159.48-
Sam's 09/19 09 09 2 9937 115.83-
Xxxxxx X. Xxxxxxx 09/22 09 09 2 9938 20.00-
Postmaster 09/23 09 09 2 9939 10.75-
Fruit Dist. Co 09/23 09 09 2 9940 256.66-
Xxxxxxxx Transport 09/23 09 09 2 9941 136.70-
Postmaster 09/24 09 09 2 9942 32.00-
Internal Revenue Service 09/24 09 09 2 9943 846.45-
CoMar Foods P/R Acct. 09/25 09 09 2 9944 4,550.00-
St. Elmo-Irvington Water 09/26 09 09 2 9945 145.19-
HealthPlan Services 09/26 09 09 2 9946 290.32-
AmSouth Bank 09/26 09 09 2 9947 485.94-
Xxxxxxx Xxxxxxx 09/26 o9 o9 2 9950 144.55-
RUN DATE: 10/01/97 CoMar Foods, Inc. PAGE 2
RUN TIME: 12:14 PM
DETAIL TRIAL BALANCE
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT RANGE: 10301 TO 10301 PERIOD ENDING 09/30/97
---------ACCOUNT------------- -BEGINNING- --------------------------TRANSACTION----------------------- --ENDING--
NUMBER DESCRIPTION BALANCE DESCRIPTION DATE PP PE S REFERENCE AMOUNT BALANCE
====================================================================================================================================
10301 AmSouth - Operating (Continued)
Postmaster 09/26 09 09 2 9951 10.75-
Deposit - Xxxxx 09/25 09 09 1 16.66
09/30 09 09 R 3,025.85
Xxxxxxxx Cablevision 09/26 09 09 2 9952 25.79-
AmSouth 09/26 09 09 2 9953 539.48-
Void 09/29 09 09 2 9954 0.00-
FedEx 09/29 09 09 2 9956 15.00-
Xxxxxx Xxxxxxx 09/29 09 09 2 9957 25.00-
09/30 09 09 A 5,818.72-
09/30 09 09 A 3,312.29-
Deposit - Custom Pack 09/30 09 09 1 7,851.00
Xxxxxx Xxxxxxxxxx 09/30 09 09 2 9958 233.85-
AmSouth 09/30 09 09 2 9959 4,825.45-
Cash - Exp. Reimb. 09/30 09 09 2 9970 213.85-
951.39-* 1,176.94 *
------------------------------------------------------------------------------------------------------------------------------------
*** End Of - DETAIL TRIAL BALANCE ***
RUN DATE: 10/01/97 CoMar Foods, Inc. PAGE 1
RUN TIME: 12:15 PM
DETAIL TRIAL BALANCE
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT RANGE: 10302 TO 10302 PERIOD ENDING 09/30/97
---------ACCOUNT------------- -BEGINNING- --------------------------TRANSACTION----------------------- --ENDING--
NUMBER DESCRIPTION BALANCE DESCRIPTION DATE PP PE S REFERENCE AMOUNT BALANCE
====================================================================================================================================
10302 AmSouth - Payroll 33.62
CoMar Foods P/R Acct. 09/04 09 09 2 9915 3,525 00
CoMar Foods P/R Acct. 09/11 09 09 2 9922 3,000 00
CoMar Foods P/R Acct. 09/12 09 09 2 9923 1,100.00
NET PAY 09/03 09 09 P 2,116.92-
NET PAY 09/03 09 09 P 1,389.12-
NET PAY 09/10 09 09 P 2,676.49-
NET PAY 09/10 09 09 P 1,422.64-
NET PAY 09/17 09 09 P 2,545.78-
NET PAY 09/17 09 09 P 1,421.68-
NET PAY 09/24 09 09 P 3,057.88-
NET PAY 09/24 09 09 P 1,422.64-
Xxxxx Xxxxxx 09/26 09 09 2 3513 3.40-
Xxxxxx Xxxxx 09/26 09 09 2 3514 42.10-
CoMar Foods P/R Acct. 09/18 09 09 2 9933 4,000.00
CoMar Foods P/R Acat. 09/25 09 09 2 9944 4,550.00
76.35* 109.97*
------------------------------------------------------------------------------------------------------------------------------------
*** End Of - DETAIL TRIAL BALANCE ***
RUN DATE: 09/30/97 CoMar Foods, Inc. PAGE 1
RUN TIME: 11:49 AM Accounts Receivabie
Detailed Aged Receivables Report
------------------------------------------------------------------------------------------------------------------------------------
[ILLEGIBLE]
CoMar Foods, Inc.
Prepaid Insurance
1997
------------------------------------------------------------------------------------------------------------------------------------
Balance Expense Balance Expense Balance Expense Balance Expense Balance
Coverage 06/30/97 July '97 07/31/97 Aug. '97 08/31/97 Sept.'97 09/30/97 Oct.'97 10/31/97
------------------------------------------------------------------------------------------------------------------------------------
Flood Ins.-Satsuma St.
(03/22/96-97)
Cancelled in Dec. Return prem. rcvd April, 1997.
Comm. Pkg./Umbrella 519.29 (519.29) 0.00
(07/28/96-97)
Comm. Pkg. - A/C & Tape 15.19 (15.19) (0.00)
(07/28/96-97)
Comm. Pkg. - Up Eqpt. 99.47 (99.47) 0.00
(08/29/96-07/28/97)
Auto Ins.
(12/01/96-97) 2,456.39 (497.70) 1,958.69 (497.70) 1,460.99 (481.64) 979.35 (497.70) 481.65
Comm. Pkg./Umbrella
(Cancel Satsuma St.) (149.55) 149.55 (0.00)
-------- ------- -------- ------- ------- ------- ------ ------- ------
Totals 2,940.79 (982.10) 1,958.69 (497.70) 1460.99 (481.64) 979.35 (497.70) 481.65
======== ======= ======== ======= ======= ======= ====== ======= ======
Date: 9-30-97
-------
----------------------------------------------------------------------------------------------------------
CODE PRODUCT DESCRIPTION BEGINNING IN OUT ENDING
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
BO-101 OYSTER - HOME STYLE
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
BC-101 CRAB CLAW-ORIGINAL
----------------------------------------------------------------------------------------------------------
BC-102 CRAB CLAW-SEASONED 30 43.26 1297.80
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
CCB-0100 1 SFD-PLATTER CORPUS CHRISTI CRAB 5 30.00 150.00
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
CSB-122B 50/60 SEAS BRD POPCORN
----------------------------------------------------------------------------------------------------------
CSB-201B 2-4 oz. BRD CATFISH
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
GB-125B 60/80 BRD SCALLOP 98 49.80 4880.40
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
HS-103 21/25 TAIL ON
----------------------------------------------------------------------------------------------------------
HS-105 26/30 TAIL ON 2 35.34 70.68
----------------------------------------------------------------------------------------------------------
HS-106 26/30 SEASONED TAIL ON
----------------------------------------------------------------------------------------------------------
HS-107 31/35 TAIL ON 1 33.90 33.90
----------------------------------------------------------------------------------------------------------
HS-109 38/44 TAIL ON
----------------------------------------------------------------------------------------------------------
HS-118 38/44 SEASONED B.T.O.
----------------------------------------------------------------------------------------------------------
HS-121 50/60 B.T.O. 2 26.40 52.80
----------------------------------------------------------------------------------------------------------
HS-122 50/60 SEASONED B.T.O. 6#
----------------------------------------------------------------------------------------------------------
HS-122M 50/60 SEASONED B.T.O. 12#
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
MSB-0100 1 oz. MONTEREY SHRIMP 10 25.80 258.00
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
NOC-0150 1.5 oz. CRAB CAKE
----------------------------------------------------------------------------------------------------------
NOC-0160 1.6 oz. BREADED CAKE
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
SFSN-0080 .8 oz. SANTA FE SHRIMP
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
RAW PRODUCT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
00011 HOME STYLE SHRIMP
----------------------------------------------------------------------------------------------------------
00013 BRD TAIL-OFF
----------------------------------------------------------------------------------------------------------
00014 3oz. STUFFED CRAB 6 59.76 358.56
----------------------------------------------------------------------------------------------------------
00015 ST JALAPENO PEPPER 3 71.76 215.28
----------------------------------------------------------------------------------------------------------
00016 BRD CRAWFISH 11 119.76 1317.36
----------------------------------------------------------------------------------------------------------
00017 SANTE FE NUGGETS 3 51.00 153.00
----------------------------------------------------------------------------------------------------------
00018 MONTEREY BITES 12 51.00 612.00
----------------------------------------------------------------------------------------------------------
00019 BRD SCALLOPS 1 102.00 102.00
----------------------------------------------------------------------------------------------------------
00020 BRD OYSTERS
----------------------------------------------------------------------------------------------------------
00021 BRD CRABCAKES 1 59.76 59.76
----------------------------------------------------------------------------------------------------------
00022 [ILLEGIBLE]
----------------------------------------------------------------------------------------------------------
00023 MOZZARELLA CHEESE 32 71.76 2296.32
----------------------------------------------------------------------------------------------------------
CoMar Foods, Inc. PAGE 14
RUN DATE: 09/30/97 Inventory Control
RUN TIME: 4:43 PM Physical Inventory Report
--------------------------------------------------------------------------------
DEPARTMENT:
ITEM VENDOR VENDOR SELL ---QTY-ON-HAND---
NUMBER DESCRIPTION LOCATION ID ITEM# UNIT CALCULATED ACTUAL COMMENTS
------ ----------- -------- ------ ------ ---- ---------- ------ --------
[ILLEGIBLE]
2048 # 552.96
750 # 247.50
197 lb. 281.71
625 lb. 143.75
317 lb. 174.35
1850 lb. 334.85
95 gr. 286.90
.8 # 3.83
700 # 175.00
11.2 1.46
CoMar Foods, Inc. PAGE 15
RUN DATE: 09/30/97 Inventory Control
RUN TIME: 4:43 PM Physical Inventory Report
--------------------------------------------------------------------------------
DEPARTMENT:
ITEM VENDOR VENDOR SELL ---QTY-ON-HAND---
NUMBER DESCRIPTION LOCATION ID ITEM# UNIT CALCULATED ACTUAL COMMENTS
------ ----------- -------- ------ ------ ---- ---------- ------ --------
[ILLEGIBLE]
1640 # 852.80
350 # 140.00
1750 # 1155.00
280 lb. 170.80
380 # 399.20
70 lb. 161.70
64 oz. 8.32
1785 lb. 1785.00
1450 lb. 739.50
104 lb. 94.64
39 lb. 34.71
275 lb. 286.00
CoMar Foods, Inc. PAGE 16
RUN DATE: 09/30/97 Inventory Control
RUN TIME: 4:43 PM Physical Inventory Report
--------------------------------------------------------------------------------
DEPARTMENT:
ITEM VENDOR VENDOR SELL ---QTY-ON-HAND---
NUMBER DESCRIPTION LOCATION ID ITEM# UNIT CALCULATED ACTUAL COMMENTS
------ ----------- -------- ------ ------ ---- ---------- ------ --------
[ILLEGIBLE]
315 lb. 138.60
186 # 85.56
215 # 202.10
1344 oz. 147.84
320 oz. 12.80
6 gal. 768oz. 23.04
17 gal. 217oz. 21.76
97 lb. $269.66
2000 100.00
4000 200.00
1200 60.00
192 oz. 7.68
$1,269.04
CoMar Foods, Inc. PAGE 24
RUN DATE: 09/30/97 Inventory Control
RUN TIME: 4:43 PM Physical Inventory Report
--------------------------------------------------------------------------------
DEPARTMENT:
ITEM VENDOR VENDOR SELL ---QTY-ON-HAND---
NUMBER DESCRIPTION LOCATION ID ITEM# UNIT CALCULATED ACTUAL COMMENTS
------ ----------- -------- ------ ------ ---- ---------- ------ --------
[ILLEGIBLE]
1140 lb. 684.00
840 lb. 1848.00
50 lb.
60 lb. 180.00
214 lb. 1209.10
120 lb.
595 lb. 1338.75
$5,913.35
CoMar Foods, Inc. PAGE 1
RUN DATE: 09/30/97 Inventory Control
RUN TIME: 4:43 PM Physical Inventory Report
--------------------------------------------------------------------------------
DEPARTMENT:
ITEM VENDOR VENDOR SELL ---QTY-ON-HAND---
NUMBER DESCRIPTION LOCATION ID ITEM# UNIT CALCULATED ACTUAL COMMENTS
------ ----------- -------- ------ ------ ---- ---------- ------ --------
[ILLEGIBLE]
.42 260 109.20
.47 751 352.97
.28 900 252.00
.15 10350 1552.50
.58 3065 1777.70
.43 3142 1351.06
.26 6 1.56
.32 3100 992.00
$6,388.99
CoMar Foods, Inc. PAGE 2
RUN DATE: 09/30/97 Inventory Control
RUN TIME: 4:43 PM Physical Inventory Report
--------------------------------------------------------------------------------
DEPARTMENT:
ITEM VENDOR VENDOR SELL ---QTY-ON-HAND---
NUMBER DESCRIPTION LOCATION ID ITEM# UNIT CALCULATED ACTUAL COMMENTS
------ ----------- -------- ------ ------ ---- ---------- ------ --------
[ILLEGIBLE]
.44 2600 1144.00
$1,144.00
CoMar Foods 09-Sep-97
Depreciation 03:59 PM
1997
Date Method/ A/D Depr. A/D
Acquired Cost Life 12/31/96 for 1997 12/31/97
-------- ---- ------- -------- -------- --------
Furniture & Equipment (174)
Secretarial desk 08/89 500.00 MACRS 7 500.00 0.00 500.00
3-drawer file cabinet 08/89 150.00 MACRS 7 150.00 0.00 150.00
Typewriter 11/90 160.34 MACRS 7 153.20 7.14 160.34
Microwave 12/92 95.04 MACRS 7 65.35 8.49 73.84
Carpet 06/93 2,697.40 MACRS 7 1,854.74 240.88 2,095.62
Stove & Refrigerator 06/93 3,159.06 MACRS 5 2,613.17 363.92 2,977.09
Copier - United Office 06/93 1,084.55 MACRS 5 897.14 124.94 1,022.08
Chairs - Office Max 06/93 698.61 MACRS 7 480.37 62.39 542.76
Chairs - Xxxxxxx Xxxxxxx 06/93 245.00 MACRS 7 168.46 21.88 190.34
Lobby furniture - McAleers 06/93 608.22 MACRS 7 418.21 54.31 472.52
Awning - Canvas Products 06/93 1,242.80 MACRS 7 854.56 110.98 965.54
Word processor - Wal Mart 08/93 326.86 MACRS 5 270.38 37.65 308.03
Chairs - McAleers 10/93 238.71 MACRS 7 164.13 21.32 185.45
Computer 08/95 965.11 MACRS 5 501.86 185.30 687.16
Printer - Office Depot 09/95 371.68 MACRS 5 193.28 71.36 264.64
Chair - XxXxxxx'x 10/95 151.51 MACRS 7 58.75 26.50 85.25
Printers - X. Xxxxxxxxx 11/95 315.00 MACRS 5 63.00 100.80 163.80
Alarm System - US Alarms 08/96 419.50 MACRS 5 83.90 134.24 218.14
Magnavox 19" TV- Lowes 10/96 202.23 MACRS 5 40.45 64.71 105.16
Simplex Time Clock 11/96 1,375.28 MACRS 5 275.06 440.09 715.15
--------- -------- -------- ---------
15,006.90 9,806.01 2,076.90 11,882.91
Vehicles (177)
1991 Chev Lumina 12/91 12,870.00 MACRS 5 12,870.00 0.00 12,870.00
1994 GMC Sierra Pickup 01/94 14,950.00 MACRS 5 10,510.00 1,675.00 12,185.00
--------- --------- -------- ---------
27,820.00 23,380.00 1,675.00 25,055.00
CoMar Foods 09-Sep-97
Depreciation 03:59 PM
1997
Date Method/ A/D Depr. A/D
Acquired Cost Life 12/31/96 for 1997 12/31/97
-------- ---- ------- -------- -------- --------
Equipment (173)
SS auto batter/flour sifter 1989 550.00 MACRS 7 550.00 0.00 550.00
4 SS tables 1989 1,560.00 MACRS 7 1,560.00 0.00 1,560.00
Commercial sink 1989 975.00 MACRS 7 975.00 0.00 975.00
9 freezer racks/100 trays 1989 2,250.00 MACRS 7 2,250.00 0.00 2,250.00
Basket 03/90 262.42 MACRS 7 250.71 11.71 262.42
Fire System 09/90 1,011.80 MACRS 7 966.66 45.14 1,011.80
Trays 11/90 384.05 MACRS 7 366.94 17.11 384.05
Trays 03/91 248.41 MACRS 7 223.96 21.74 245.70
Xxxxx Xxxxx - Xxxxxxxx Foods 03/93 33,500.00 MACRS 7 23,034.60 2,991.55 26,026 15
5 and 12 ft. turn conveyer belts 06/93 5,700.00 MACRS 7 3,919.32 509.01 4,428.33
IQF tunnel - United Sheet 04/93 11,500.00 MACRS 7 7,907.40 1,026.95 8,934.35
2 brd/batter mach.-United Sheet 06/93 14,000.00 MACRS 7 9,626.40 1,250.20 10,876.60
Air compressor - United Sheer 07/93 500.00 MACRS 7 343.80 44.65 388.45
Batter mixer eqpt. - X. Xxxxxx 06/93 135.00 MACRS 7 92.82 12.06 104.88
Fire extinguisher system 07/93 1,661.20 MACRS 7 1,142.24 148.35 1,290.59
2 ventilators - Grainger 07/93 1,148.89 MACRS 7 789.98 102.60 892.58
Vent - Grainger 08/93 520.56 MACRS 7 357.95 46.49 404.44
Manifold - Airco 08/93 1,890.00 MACRS 7 1,299.56 168.78 1,468.34
Fryer System - Xxxxxxxx 08/93 3,000.00 MACRS 7 2,062.80 267.90 2,330.70
Prop. Mixer - Rand 08/93 357.31 MACRS 7 245.69 31.91 277.60
Mod. brd machine - Whites 08/93 965.00 MACRS 7 663.54 86.17 749.71
Conversion - Albert's 08/93 400.00 MACRS 7 275.04 35.72 310.76
Scales - Xxxxxxxx Xxxxxx 09/93 756.00 MACRS 7 519.81 67.51 587.32
Fryer recorder - AWC AL 09/93 1,575.75 MACRS 7 1,083.48 140.71 1,224.19
Contactor - Xxxxxxx-Xxxxx 09/93 1,674.50 MACRS 7 1,151.40 149.53 1,300.93
Xxxxxxx'x Sheet & Plate 10/93 450.00 MACRS 7 309.44 40.19 349.63
(2) Prawnto Machines 01/03/94 800.00 MACRS 7 450.16 99.92 550.08
Mixer - White Fixtures 03/13/95 1,470.00 MACRS 7 570.06 257.10 827.16
Table - Xxxxxxx/Sysco 03/17/95 607.07 MACRS 7 235.42 106.18 341.60
Extruder - Xxxxxx Xxxxxxxx 03/24/95 3,000.00 MACRS 7 1,163.40 524.70 1,688.10
Tank Mixer - X. X. Xxxxxxxx 08/16/95 385.84 MACRS 7 149.63 3.00 152.63
Platform Scale - Xxxxxxxx Xxxxxx 10/25/95 498.75 MACRS 7 158.41 87.23 245.64
Extruder Spouts - Xxxxx Xxxx 1/2 & 1/31/96 2,047.30 MACRS 7 292.56 501.38 793.94
Conveyor Belt - Intralox 04/19/96 1,085.74 MACRS 7 155.15 265.90 421.05
Dock Levelor- ArrowStar 10/01/96 685.91 MACRS 7 98.02 167.98 266.00
Fryers/Heat Lamp - White Fixtures 10/21/96 567.00 MACRS 7 81.02 138.86 219.88
Pallet Xxxx - Clarklift 11/04/96 463.25 MACRS 7 66.20 113.45 179.65
Pallet Truck - ArrowStar 11/06/96 350.78 MACRS 7 50.13 85.91 136.04
SS Mixer - Rand 11/08/96 295.88 MACRS 7 42.28 72.46 114.74
--------- --------- -------- ---------
99,233.41 65,480.98 9,640.05 75,121.03
CoMar Foods 09-Sep-97
Depreciation 03:59 PM
1997
Date Method/ A/D Depr. A/D
Acquired Cost Life 12/31/96 for 1997 12/31/97
-------- ---- ------- -------- -------- --------
Plant-Xxxx Xxxxxxxx Rd. (175) 03/93 127,500.00 SL 31 1/2 15,515.84 4,047.62 19,563.46
Plant Improvements (176)
Southern Ready Mix 05/93 969.02 SL 39 74.55 24.85 99.40
Xxxxx Backhoe 05/93 1,328.00 SL 39 102.15 34.05 136.20
Xxxxxxx Electric 06/93 8,837.57 SL 39 679.80 226.60 906.40
Xxxxx Construction 06/93 1,350.00 SL 39 103.86 34.62 138.48
Xxxxxx Xxxxxx - A/C slab 06/93 250.00 SL 39 19.23 6.41 25.64
Xxxxxxx Xxxxxx - A/C frame 06/93 400.00 SL 39 30.78 10.26 41.04
Xxxxxxx Htg - Duct work 07/93 7,097.01 SL 39 545.91 181.97 727.88
Xxxxx Xxxxxx - Wall 07/93 4,425.00 SL 39 340.38 113.46 453.84
General Sht. - A/C cover 08/93 325.00 SL 39 24.99 8.33 33.32
Xxxxxx Tank - Septic System 02/96 2,000.00 SL 39 46.97 51.28 98.25
---------- ---------- --------- ----------
26,981.60 1,968.62 691.83 2,660.45
---------- ---------- --------- ----------
Totals 296,541.91 116,151.45 18,131.40 134,282.85
========== ========== ========= ==========
Land Improvements (178)
Clearing - Xxxx Xxxxxx 03/93 790.00 SL 15 201.91 52.67 254.58
Xxxxxx Xxxxxxx - Fence 07/93 1,660.00 SL 15 332.01 110.67 442.68
---------- ---------- --------- ----------
2,450.00 533.92 163.34 697.26
Grand Total 298,991.91 116,685.37 18,294.74 134,980.11
========== ========== ========= ==========
RUN DATE: 10/01/97 CoMar Foods, Inc. PAGE 1
RUN TIME: 12:36 PM
DETAIL TRIAL BALANCE
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNT RANGE: 18601 TO 18603 PERIOD ENDING 09/30/97
---------ACCOUNT------------- -BEGINNING- -------------------------TRANSACTION------------------------ --ENDING--
NUMBER DESCRIPTION BALANCE DESCRIPTION DATE PP PE S REFERENCE AMOUNT BALANCE
====================================================================================================================================
18601 Mobile Gas Deposit 125.00 0.00* 125.00*
00000 Xx. Xxxx/Xxxxxxxxx Xxxxx 60.00 0.00* 60.00*
18603 General Interlease Corp 2,886.03 0.00* 2,886.03*
------------------------------------------------------------------------------------------------------------------------------------
*** End Of - DETAIL TRIAL BALANCE ***
EXHIBIT B-1
------------------ ------------
VENDOR AMOUNT
------------------ ------------
Xxxxxxx - Interest thru 10/01/97 19,479.60
AmSouth - W/C loan 1,333.01
Payroll Taxes - 3rd Qtr 18,964.38
NLRB Settlement 7,338.34
Xxxx Xxxxxxxxx- 25k + interest 27,021.92
Crow & Xxxxxxx - fees @ closing 3,420.00
Xx Xxxxxxx - fees @ closing 7,400.00
Accrued wages thru 09/30 4,924.39
AmSouth - Visa 433.01
---------
90,314.65
A/P:
All Temp A/C 206.00
Xxxxxxxx 276.27
M. D. Xxxx 500.00
BellSouth Mobility 278.42
BOC Gases 2,247.26
Xxxxxx Crab 1,760.00
Capital Pkg. 500.00
Classic Crab 440.00
Colonial Pacific Leasing 2,661.94
Crystal Mountain 73.94
Digital 142.26
Fruit Dist. 406.40
Gold Xxxx 1,392.50
GTE Mobilnet 1,200.00
Ingredients Corp. 523.32
IOE 2,348.50
Jubilee Foods 849.60
Xx XxXxxxxxx 500.00
Merchants Co. 442.50
Mobile Fixture 204.93
Xxxxxx Xxxxx 2,500.00
NewlyWeds Foods 680.25
NTFC Capital 717.64
Pel-Pak 629.55
Rand Materials 295.88
Roto-Rooter 430.00
Ryder 3,812.19
SAIA 619.98
Seafood Int'l 600.00
Southern Sfd 720.00
Tech Pak 391.00
EXHIBIT B-1
EXHIBIT B-1
------------------ ------------
VENDOR AMOUNT
------------------ ------------
White Fixtures 259.70
Xxxxxx & Sons 300.00
Young Pkg 775.32
----------
29,685.35
TOTAL 120,000.00
EXHIBIT B-2
--------- --------- --------- --------- --------- --------- ----------
Oct.'97 Nov. 97 Dec.'97 Jan.'98 Feb.'98 Mar.'98 Total
--------- --------- --------- --------- --------- --------- ----------
Vendor Payables:
Xxxxxxxxx'x Service 230.00 230.00
BellSouth Mobility 278.42 278.42 556.84
BOC Gases 941.66 941.66 941.67 941.67 941.67 941.67 5,650.00
Capital Packaging 741.07 741.07 1,482.14
Crow & Xxxxxxx, PC 2,000.00 2,000.00 1,950.00 5,950.00
GTE Mobilnet 1,000.00 967.55 1,967.55
Hand, Xxxxxxxx 530.85 530.85 530.85 530.85 530.85 530.87 3,185.12
IOE 1,166.66 1,166.66 1,166.66 1,166.66 1,166.66 1,166.70 7,000.00
Xx XxXxxxxxx 1,742.69 1,742.69 1,742.69 1,742.69 1,742.69 1,742.69 10,456.14
Xxxxxx Xxxxx 1,800.00 1,800.00
NTFC Capital 181.96 181.96
Pel-Pak 629.57 629.57 629.57 1,888.71
Peformance Plastics 126.69 126.69
Roto-Rooter 430.00 430.00
Ryder Truck Rental 3,768.93 3,768.93
Sub-Total 15,568.50 8,998.47 6,961.44 4,381.87 4,381.87 4,381.93 44,674.08
Comm. - Food Sales of N.O. 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 19,800.00
Comm. - Conco Shrv. 493.88 479.76 973.64
0.00
Anticipated Vendor Savings (5,000.00) (5,000.00) (5,000.00) (5,000.00) (5,000.00) (5,000.00) (30,000.00)
0.00
Oct. P/R Taxes 1,122.00 1,122.00
Xxxx Xxxxxxxxx 706.10 706.10 706.10 7,321.62 9,439.92
AmSouth - W/C 650.00 18,259.26 7,479.46 26,388.72
AmSouth - Visa 1,330.00 1,330.00
P/R Tax Penalty - 3rd Qtr. 1,025.00 1,025.00
Bay Marine 3,125.00 2,231.41 3,768.59 9,125.00
Xxxxx Xxxxxxx 8,704.52 12,784.41 19,996.51 21,767.22 27,318.07 90,570.73
Custom Pack 5,550.91 5,550.91
Total 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 180,000.00
Exhibit B-3
Xxxxxx X. Xxxxxxx $150,000.00
KBK Financial, Inc. 116,289.74
Exhibit B-3
Exhibit F
None
Exhibit F
