Archie L. and Louise B. Honbarrier - Page 12




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               substantial working capital in order to permit it to                   
               make use of Colonial’s ICC authority;                                  
               As previously stated, Colonial’s ICC operating authority had           
          no value, and Central never used the ICC operating authority                
          acquired from Colonial in the merger.  Central never operated as            
          a packaged-freight carrier.                                                 
               For purposes of the merger, Mr. Odom determined that the               
          premerger value of Central’s stock was $417.45 per share.  He               
          then determined that the net asset value of Colonial, which was             
          being acquired by Central, was $7,442,6607 and that the number of           
          Central shares necessary to compensate Mr. Honbarrier for his               
          Colonial stock was 17,840 shares.  Pursuant to the merger, Mr.              
          Honbarrier’s 245 shares of Colonial stock were exchanged for                
          17,840 shares of Central stock.  The merger changed Central’s               
          shareholder ownership as follows:                                           
                    Before Merger:                After Merger:                       
                    Shares   Percent Ownership    Shares    Percent Ownership         
          Mr. Honbarrier      65,48472.0396        83,324    76.6268                   
          Mrs. Honbarrier        3000.3300         300       0.2760                    
          Gary L. Honbarrier  12,55813.8152        12,558    11.5486                   
          Linda Embler   12,558    13.8152        12,558     11.5486                  
          Total          90,900    100.0000  108,740        100.0000                  
               On December 22, 1993, the board of directors of Central also           
          declared a $7 million distribution payable to its shareholders on           
          December 31, 1993.  The shareholder distribution was allocated on           
          a pro rata basis among the shareholders based on their stock                

               7This figure includes $175,000 for Colonial’s ICC operating            
          authority.  As we previously found, the ICC operating authority             
          had no value and should not have been included in Colonial’s net            
          asset value.                                                                





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