Douglas P. McLaulin, Jr. et al. - Page 6




                                                - 6 -                                                  
            of its dissatisfaction with Hutto’s management of Sunbelt.                                 
            Earlier in 1992, Ridge and Hutto had tentatively agreed to a                               
            price of $825,000 for a 50-percent stock interest in Sunbelt,                              
            applicable whether Hutto was the buyer or the seller.  Ridge and                           
            Hutto finally agreed that Ridge and Hutto would cause Sunbelt to                           
            redeem Hutto’s shares in Sunbelt (the redemption) in exchange for                          
            $828,943.75 in cash and real estate valued at $101,000.  The                               
            redemption was accomplished on January 15, 1993.  Immediately                              
            thereafter, Ridge owned the only outstanding shares of Sunbelt.                            
                  Also on January 15, 1993, subsequent to the redemption,                              
            Ridge made a distribution with respect to its stock of all of its                          
            shares in Sunbelt (the distribution and the Sunbelt shares,                                
            respectively).  The distribution was to petitioners, the sole                              
            shareholders of Ridge, pro rata.  The Ridge board set forth its                            
            reasons for the distribution as follows:                                                   
                        WHEREAS, Sunbelt’s activities are regulated by the                             
                  Environmental Protection Agency and the Florida                                      
                  Department of Environmental Regulation and are subject                               
                  to certain provisions of state and federal                                           
                  environmental protection laws, including the                                         
                  Comprehensive Environmental Response, Compensation, and                              
                  Liability Act of 1980 (CERCLA).  Any violation of such                               
                  laws in the past or in the future by Sunbelt may                                     
                  subject Corporation [Ridge] to liability as a                                        
                  shareholder of Sunbelt for damages, fines or penalties;                              
                  and                                                                                  
                        WHEREAS, Sunbelt anticipates offering certain of                               
                  its securities in a public offering in the future and                                
                  the Corporation does not want to be involved in a                                    
                  public offering or to have the securities law                                        
                  obligations of a control shareholder of a public                                     
                  corporation; and                                                                     





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