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Notes to Financial Statements, Continued


1.   Summary of Significant Accounting Policies, continued
     
     Investment in the Zapata Corporation Master Profit-Sharing Trust, continued

     Each participant may, by written notice to the Pension and Benefits
     Committee (the Committee), direct that his employee contribution be
     invested under any one or combination of the funds described above.  The
     investment percentages made to each fund, however, must be in increments of
     10 percent, among the Equity Fund, the Money Market/ Guaranteed Investment
     Contract Fund, the Fixed Income Fund and the Zapata Common Stock Fund.
     The annual employer profit-sharing contribution (see Note 2) is invested in
     the Money Market/ Guaranteed Investment Contract Fund.

     Income earned by the four investment funds described above is credited
     quarterly to the participants in that fund on a pro rata basis, based on
     the balances of the participants' accounts at the beginning of each
     quarter, increased by contributions and loan repayments and reduced by
     withdrawals and loans during the current quarter.

     Withdrawals

     Refunds payable to participants of $25,057 and $34,300 at September 30,
     1994 and 1993, respectively, are excess contributions which were returned
     to Plan participants during December 1994 and 1993, respectively.  Excess
     contributions resulted from the "Plan's highly compensated group," as
     defined by the applicable provisions of the Code, contributing more than
     they were allowed by the Code regulations.

     Benefits payable to withdrawing participants are included within net assets
     available for Plan benefits and are not reflected as a liability in the
     financial statements.

     Administrative Expenses

     Administrative expenses, brokerage fees and transfer taxes are paid by the
     Master Trust.

     Federal Income Taxes

     The Plan obtained its latest determination letter during 1987, in which the
     Internal Revenue Service stated that the Plan, as then designed, was in
     compliance with the applicable requirements of the Internal Revenue Code.
     The Plan has been amended since receiving the determination letter.
     However, the Committee, based upon discussions with the Company's tax
     counsel, believe that the Plan is currently designed and being operated in
     compliance with the applicable requirements of the Internal Revenue Code.
     Therefore, they believe that the Plan was qualified and the related trust
     was tax-exempt as of the financial statement date.

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