COMMERCE GROUP CORP. AND CONSOLIDATED SUBSIDIARIES
SCHEDULE IV(2) - INDEBTEDNESS TO RELATED PARTIES
CURRENT YEARS ENDED MARCH 31, 2010, 2009, AND 2008
Identity of Debtor | Balance at Beginning of Period | Net Additions (Deletions) to Indebtedness (1) |
Balance at End of Period |
Year ended March 31, 2010 | | | |
Late President of the Company | $ 15,673,362 | $2,740,380(a) | $ 18,413,742 |
Late President’s RIRA | 1,679,874 | 293,715(a) | 1,973,589 |
Late President’s Affiliated Company | 4,112,818 | 1,023,837(b) | 5,136,655 |
Late President’s Wife’s RIRA | 1,168,811 | 71,735(c) | 1,240,546 |
Late President’s Second Oldest Son/Daughter-in-Law |
344,591 |
60,250(d) |
404,841 |
Current President as Principal of his own Company |
391,152 |
77,449(e) |
468,601 |
Late President’s half brother | 19,923 | 3,484(d) | 23,407 |
Total, notes payable | $ 23,390,531 | $4,270,850 | $ 27,661,381 |
| | | | |
Late President’s Accrued Salary | $ 3,455,786 | $ 0(f) | $ 3,455,786 |
| | | | |
Current President’s Accrued Salary | $ 184,479 | $ 178,750(f) | $ 363,229 |
| | | | |
Late President’s Wife’s Consulting Fees | $ 507,600 | $ 36,000(g) | $ 543,600 |
| | | | |
Legal fees (Late President’s Second Oldest Son is a principal) |
$ 506,396 |
$ 39,836(h) |
$ 546,233 |
| | | | |
Year ended March 31, 2009 | | | |
Late President of the Company | $ 13,354,281 | $2,319,081(a) | $ 15,673,362 |
Late President’s RIRA | 1,429,871 | 250,003(a) | 1,679,874 |
Late President’s Affiliated Company | 3,242,264 | 870,554(b) | 4,112,818 |
Late President’s Wife’s RIRA | 994,866 | 173,945(c) | 1,168,811 |
Late President’s Second Oldest Son/Daughter-in-Law |
293,308 |
51,283(d) |
344,591 |
Current President as Principal of his own Company |
102,182 |
288,970(e) |
391,152 |
Late President’s half brother | 16,958 | 2,965(d) | 19,923 |
Total, notes payable | $ 19,433,730 | $3,956,801 | $ 23,390,531 |
| | | | |
Late President’s Accrued Salary | $ 3,455,786 | $ (f) | $ 3,455,786 |
| | | | |
Current President’s Accrued Salary | $ 5,729 | $ 178,750(f) | $ 184,479 |
| | | | |
Late President’s Wife’s Consulting Fees | $ 471,600 | $ 36,000(g) | $ 507,600 |
| | | | |
Legal fees (Late President’s Second Oldest Son is a principal) |
$ 454,444 |
$ 51,952(h) |
$ 506,396 |
| | | | |
| | | | |
| | | | |
| | | | |
Year ended March 31, 2008 | | | |
Late President of the Company | $11,372,962 | $1,981,319(a) | $ 13,354,281 |
Late President’s RIRA | 1,216,540 | 213,331(a) | 1,429,871 |
Late President’s Affiliated Company | 2,673,458 | 568,806(b) | 3,242,264 |
Late President’s Wife’s RIRA | 846,436 | 148,430(c) | 994,866 |
Late President’s Second Oldest Son/Daughter-in-Law |
249,547 |
43,761(d) |
293,308 |
Current President as Principal of his own Company |
51,454 |
50,728(e) |
102,182 |
Late President’s half brother | 0 | 16,958(d) | 16,958 |
Total, notes payable | $ 16,410,397 | $3,023,333 | $ 19,433,730 |
| | | | |
Late President’s Accrued Salary | $ 3,351,515 | $ 104,271(f) | $ 3,455,786 |
| | | | |
Current President’s Accrued Salary | $ 0 | $ 5,729(f) | $ 5,729 |
| | | | |
Late President’s Wife’s Consulting Fees | $ 435,600 | $ 36,000(g) | $ 471,600 |
| | | | |
Legal fees (Late President’s Second Oldest Son is a principal) |
$ 415,035 |
$ 39,409(h) |
$ 454,444 |
| | | | |
(1)(a)
The net additions to the open-ended, secured, on-demand promissory notes issued to the late President of the Company, as an individual, and not as a Director or Officer of the Company, and his RIRA are from accrued interest.
(1)(b)
The late President owns 55% of an Affiliated Company’s common shares. The additions to the open-ended, secured, on-demand promissory note issued to an Affiliated Company result from cash advances, accrued interest, accrued office rent, vehicle rental and other expenses incurred on behalf of the Company.
(1)(c)
The additions resulted from accrued interest earned during the fiscal year.
Per an agreement that the Company entered into with the late President’s Wife on behalf of her RIRA on March 29, 2010, the Company sold its precious stones and jewelry assets at its cost of $132,447.77 to the President’s Wife RIRA for the purpose of reducing the open-ended, secured, on-demand promissory notes due to the President’s Wife RIRA by the sum of $132,447.77.
(1)(d)
The additions resulted from accrued interest earned during the fiscal year.
(1)(e)
The additions to the open-ended, secured, on-demand promissory note issued to the current President as principal of his own company result from cash advances and accrued interest.
(1)(f)
The late President’s salary and vacation pay was accrued through October 31, 2007. The current President’s salary and vacation pay was accrued through March 31, 2010.
(1)(g)
Twelve months of consulting fees at $3,000 per month for a total of $36,000.
(1)(h)
The addition of the amounts due to the Law Firm results for legal services rendered through February 28, 2010. The amount due to the Law Firm through March 31, 2010 is $546,232.50. By agreement on the date of payment, these fees are to be adjusted to commensurate with the current hourly fees charged by the Law Firm.
