<PAGE>
ZAPATA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
NOTE 13. BENEFIT PLANS--(CONTINUED)
No contributions to the plan have been required since the plan is unfunded.
The plan's funded status and amounts recognized in the Company's balance sheet
at September 30, 1995 and 1994 are presented below:
<TABLE>
<CAPTION>
1995 1994
----- -----
(IN
THOUSANDS)
<S> <C> <C>
Fair value of plan assets................................... $ -- $ --
----- -----
Actuarial present value of benefit obligations:
Vested benefits........................................... 950 935
Nonvested benefits........................................ -- --
----- -----
Accumulated benefit obligation............................ 950 935
Additional benefits based on projected salary increases... -- --
----- -----
Projected benefit obligation.............................. 950 935
----- -----
Excess of projected benefit obligations over plan assets.... (950) (935)
Unrecognized net loss....................................... -- --
Unrecognized prior service costs............................ -- --
Additional minimum liability................................ -- --
----- -----
Unfunded accrued liability.................................. $(950) $(935)
===== =====
</TABLE>
Qualified Defined Contribution Plan
The Company sponsors a defined contribution plan, the Zapata Profit Sharing
Plan (the "Plan"), for certain eligible employees of the Company. Effective
October 1, 1994, the Company merged a defined contribution plan of Zapata
Protein with and into the Plan. The Company's combined contributions to these
plans totalled $573,225, $577,903 and $473,034 in 1995, 1994 and 1993,
respectively. The Company's contributions are based on employee earnings and
contributions.
NOTE 14. RELATED PARTY TRANSACTIONS
In August 1995, Zapata acquired 31% of the outstanding common stock of
Envirodyne for $18.8 million from a trust controlled by Malcolm Glazer,
Chairman of the Board of Zapata and a director of Envirodyne. Zapata paid the
purchase price by issuing to the seller a subordinated promissory note bearing
interest at prime and maturing in August 1997, subject to prepayment at the
Company's option. The Company has since prepaid approximately $15.6 million on
the promissory note.
During 1995 and 1994, Zapata made purchases totalling $10.4 million and $7.3
million from a company owned by a shareholder and former director of Zapata. At
September 30, 1995, Zapata owed $326,000 related to these purchases.
Zapata received $7,000, $317,000 and $249,000 in 1995, 1994 and 1993,
respectively, from a former director of the Company for use of the Company's
executive aircraft under an arrangement which provided for full recovery of
expenses associated with such use.
During 1995, 1994 and 1993, Zapata received $24,000, $104,000 and $31,000,
respectively, from Norex associated with an administrative services arrangement
pursuant to which Zapata provided office space and certain administrative
services to Norex. See Note 7 and Note 9 for discussions of additional
transactions with Norex.
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