<PAGE>
 
          From time to time, the Company is involved in litigation relating to
claims arising out of its operations in the normal course of its business.  The
Company maintains insurance coverage against potential claims in an amount 
it believes to be adequate.  In the opinion of management, uninsured losses, if
any, resulting from these matters and from the matters discussed above will not
have a material adverse effect on Zapata's results of operations, cash flows or
financial position.

================================================================================

          The information appearing in Part III of the Company's Annual Report
on Form 10-K for the year ended September 30, 1995 is amended to read in its
entirety as set forth below.

                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

          The information set forth under "Items 1. and 2. Business and
Properties--Executive Officers of the Registrant" is incorporated herein by
reference.

          Set forth below is information respecting the directors of the
Company.  Each director is elected for a term of three years and serves until
his successor is elected and qualified.  Ages given are as of December 15, 1995.

          Malcolm I. Glazer, a director since 1993, has served as Chairman of
the Board of Directors since July 1994, and served as President and Chief
Executive Officer of Zapata from August 1994 until March 1995. He also has been
a self-employed, private investor for more than the past five years.  His
diversified portfolio consists of ownership of the Tampa Bay Buccaneers National
Football League franchise and investments in television broadcasting,
restaurants, food services equipment, health care, banking, real estate, stocks,
government securities and corporate bonds.  He is a director and Chairman of the
Board of The Houlihan's Restaurant Group, Inc., and also is a director of
Specialty Equipment Companies, Inc. and Envirodyne Industries, Inc.  He is 67
years of age and serves on the Nominating Committee of the Company's Board of
Directors.  His current term of office as a director expires in 1996.

          Avram A. Glazer, a director since 1993, has served as President and
Chief Executive Officer of the Company since March 1995.  For the past five
years, he has been employed by, and has worked on behalf of,  Malcolm I. Glazer
and a number of entities owned and controlled by Malcolm I. Glazer.  He also
serves as a director of Envirodyne Industries, Inc., The Houlihan's Restaurant
Group, Inc. and Specialty Equipment Companies, Inc.  He is 35 years of age and
his current term of office as a director expires in 1997.  Avram A. Glazer is
the son of Malcolm I. Glazer.

          Ronald C. Lassiter, a director since 1974, has been the Chairman and
Chief Executive Officer of Zapata Protein, Inc. (a wholly owned subsidiary of
the Company) since January 1993.  He served as Acting Chief Operating Officer of
Zapata from December 1994 to March 1995, Chairman of the Board of Directors of
Zapata from December 1985 to July 1994, Chief Executive Officer of Zapata from
January 1983 to July 1994, and various other positions with Zapata since 1970.
Mr. Lassiter is also a director of Daniel Industries, Inc.  He is 63 years of
age and serves on the Compensation Committee of the Company's Board of
Directors.  His current term of office as a director expires in 1996.

          Robert V. Leffler, Jr. has served as a director since May 1995.  For
more than the past five years, he has operated the Leffler Agency, an
advertising and marketing/public relations firm in Baltimore, Maryland that
specializes in sports, rental real estate and medical areas.  Mr. Leffler is 50
years of age and serves on the Audit Committee and the Compensation Committee of
the Company's Board of Directors.  His current term of office as a director
expires in 1998.

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