Affiliated Foods, Inc., A Corporation - Page 11




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          Food Shows; Currency                                                        
               The currency used by vendors to pay show money had three               
          possible sources: (1) the vendor’s promotional allowance account,           
          if the vendor gave petitioner written instructions to charge a              
          specific amount against the account and to deliver currency in              
          that amount to the vendor at the food show, (2) a vendor’s check,           
          given by the vendor to petitioner for the specific purpose of               
          providing currency to the vendor at the food show, and (3)                  
          currency brought to the food show by the vendor and taken from an           
          account of the vendor unknown to petitioner.  In the first two              
          cases, petitioner obtained the necessary currency from the                  
          Amarillo National Bank (the bank).                                          
               Petitioner obtained currency from the bank in denominations            
          sufficient to meet the individual vendors’ requests for currency            
          in specific denominations.  Petitioner placed the currency in               
          locked bank bags identified with numbers unique to each vendor.             
          Immediately before a food show began, vendors retrieved their               
          bags from petitioner at a central location after, first,                    
          verifying that the bag’s contents were as expected and, second,             
          signing a receipt.                                                          
               At the conclusion of the food show, vendors who had received           
          bank bags from petitioner returned to petitioner those bags and             
          any currency they wanted to deliver to petitioner.  Petitioner              
          issued written receipts for the bank bags and currency returned.            







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Last modified: November 10, 2007