UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 28, 2003
FARMLAND INDUSTRIES, INC.
Debtor-in-possession as of May 31, 2002
(Exact name of registrant as specified in its charter)
Kansas | 001-11629 | 44-0209330 |
(State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
12200 North Ambassador Drive | |
Kansas City, Missouri | 64163-1244 |
(Address of principal executive offices) | (Zip Code) |
816-713-7000
(Registrant's telephone number, including area code)
Not Changed
(Former name or former address, if changed since last report)
ITEM 2. Acquisition or Disposition of Assets
Effective October 28, 2003, Farmland consummated the sale of substantially all of our pork marketing assets to KC Acquisition, Inc., a wholly owned subsidiary of Smithfield Foods, Inc. As part of this transaction Farmland transferred and assigned to KC Acquisition The Farmland Industries, Inc. Employee Retirement Plan (the “Pension Plan”) and all the liabilities and obligations under the Pension Plan. The sale of our pork marketing assets and transfer of the Pension Plan were in conjunction with our reorganization proceedings and were subject to approval by the bankruptcy court. An auction was held for these assets during October 2003 and the final bid was approved by the Court on October 28, 2003. This transaction resulted in the purchase of assets and inventories and the assumption of certain liabilities by the buyers for consideration of approximately $385.0 million. As part of this transaction both the buyer and seller deposited $7.5 million in an escrow account until the final working capital calculation can be completed. The sales proceeds will be held as cash reserves until such time as our plan of reorganization is consummated by the Court and distributions are made to the creditors.
ITEM 7. Financial Statements and Exhibits
The following pro forma condensed consolidated financial statements are presented to illustrate the effects of the sale of our pork marketing assets and the assignment of the Pension Plan (collectively the “Pork Marketing Disposition”) on the historical financial position and operating results of Farmland. These pro forma statements are presented on a disaggregated basis to illustrate the effects of the Pork Marketing Disposition, along with the previously reported dispositions of our crop production and beef marketing assets, on the historical financial position and operating results of Farmland.
The following pro forma condensed consolidated balance sheet of Farmland at May 31, 2003 gives effect to the Pork Marketing Disposition as if it had occurred on that date. The pro forma condensed consolidated statements of operations for the nine months ended May 31, 2002 and 2003 and for the years ended August 31, 2000, 2001 and 2002 give effect to the Pork Marketing Disposition as if it had occurred as of the beginning of the earliest period presented.
The pro forma condensed consolidated financial statements have been derived from, and should be read in conjunction with, Farmland’s historical consolidated financial statements, including the accompanying notes. Those financial statements are included in our Quarterly Report on Form 10-Q for the nine months ended May 31, 2003 and our Annual Report on Form 10-K for the year ended August 31, 2002. The pro forma condensed consolidated financial statements have also been derived from, and should be read in conjunction with, Farmland’s previous pro forma condensed consolidated financial statements, including accompanying notes. These previous pro forma statements are included in our Current Reports on Form 8-K, dated June 4, 2003 and August 15, 2003.
The pro forma condensed consolidated financial statements are presented only for informational purposes. As a result, the accompanying pro forma condensed consolidated financial statements are also not necessarily indicative of the financial position or results of operations of Farmland that would have occurred had the Pork Marketing Disposition been consummated as of the dates indicated.
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
May 31, 2003
(UNAUDITED)
ASSETS
May 31, 2003 | |||||||||||||||||
Pro Forma |
| ||||||||||||||||
Adjustment | Adjustment | Farmland | |||||||||||||||
Beef Marketing | Pork Marketing | Combined | |||||||||||||||
Farmland | Disposition | Disposition | Pro Forma | ||||||||||||||
(a) | (b) | (c) | |||||||||||||||
(Amounts in Thousands) | |||||||||||||||||
Current Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 0 | $ | 218,370 | $ | 356,972(5) | $ | 575,342 | |||||||||
Accounts receivable - trade (net of | 266,144 | (130,856) | (73,746)(1) | 61,542 | |||||||||||||
Inventories | 258,420 | (57,851) | (118,180)(1) | 82,389 | |||||||||||||
Other current assets | 76,345 | (33,232) | 2,960(1)(2) | 46,073 | |||||||||||||
Current assets from discontinued | 49,289 | 0 | 0 | 49,289 | |||||||||||||
Total Current Assets | $ | 650,198 | $ | (3,569) | $ | 168,006 | $ | 814,635 | |||||||||
Investments and Long-term receivables | $ | 213,933 | $ | (696) | $ | 0 | $ | 213,237 | |||||||||
Property, Plant & Equipment: | |||||||||||||||||
Property, plant and equipment, at cost | $ | 1,152,349 | $ | (292,626) | $ | (354,017)(1) | $ | 505,706 | |||||||||
Less accumulated depreciation and | |||||||||||||||||
amortization | 748,244 | (132,628) | (202,397)(1) | 413,219 | |||||||||||||
Net Property, Plant & Equipment | $ | 404,105 | $ | (159,998) | $ | (151,620) | $ | 92,487 | |||||||||
Other Assets: | |||||||||||||||||
Goodwill | $ | 28,289 | $ | (15,787) | $ | (2,786)(1) | $ | 9,716 | |||||||||
Intangible assets | 23,688 | 0 | (22,642)(1)(7) | 1,046 | |||||||||||||
Other long-term assets | 39,769 | (2,114) | (34,200)(1)(3)(6) | 3,455 | |||||||||||||
Long-term assets from discontinued | |||||||||||||||||
operations | 5,459 | 0 | 0 | 5,459 | |||||||||||||
Total Other Assets | $ | 97,205 | $ | (17,901) | $ | (59,628) | $ | 19,676 | |||||||||
Total Assets | $ | 1,365,441 | $ | (182,164) | $ | (43,242) | $ | 1,140,035 | |||||||||
__
See accompanying Notes to Pro Forma Condensed Consolidated Balance Sheet
page 3
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
May 31, 2003
(UNAUDITED)
May 31, 2003 | |||||||||||||||
Pro Forma | Pro Forma | ||||||||||||||
Adjustment | Adjustment | Farmland | |||||||||||||
Beef Marketing | Pork Marketing | Combined | |||||||||||||
Farmland | Disposition | Disposition | Pro Forma | ||||||||||||
(a) | (b) | (c) | |||||||||||||
(Amounts in Thousands) | |||||||||||||||
Current Liabilities: | |||||||||||||||
Checks and drafts outstanding | $ | 22,125 | $ | (22,125) | $ | 0 | $ | 0 | |||||||
Current maturities of long-term debt | 40,676 | (38,139) | 0 | 2,537 | |||||||||||
Accounts payable - trade | 60,068 | (22,539) | (11,210)(1) | 26,319 | |||||||||||
Other current liabilities | 125,936 | (51,279) | (24,785)(1) | 49,872 | |||||||||||
Current liabilities from discontinued | |||||||||||||||
operations | 12,251 | 0 | 0 | 12,251 | |||||||||||
Total Current Liabilities | $ | 261,056 | $ | (134,082) | $ | (35,995) | $ | 90,979 | |||||||
Liabilities Subject to Compromise: | |||||||||||||||
Liabilities subject to compromise | $ | 814,514 | $ | 0 | $ | 0 | $ | 814,514 | |||||||
Liabilities subject to compromise from | |||||||||||||||
discontinued operations | 57,229 | 0 | 0 | 57,229 | |||||||||||
Total Liabilities Subject to Compromise | $ | 871,743 | $ | 0 | $ | 0 | $ | 871,743 | |||||||
Long-Term Liabilities: | |||||||||||||||
Long-term borrowings (excluding | |||||||||||||||
current maturities) | $ | 146,614 | $ | (126,949) | $ | (3,939)(1) | $ | 15,726 | |||||||
Other long-term liabilities | 41,821 | (2,230) | 1,495(1) | 41,086 | |||||||||||
Total Long-Term Liabilities | $ | 188,435 | $ | (129,179) | $ | (2,444) | $ | 56,812 | |||||||
Minority Owners' Equity in Subsidiaries | $ | 51,028 | $ | (47,506) | $ | 0 | $ | 3,522 | |||||||
Net Loss | $ | (435,415) | $ | 0 | $ | 0 | $ | (435,415) | |||||||
Capital Shares and Equities: | |||||||||||||||
Preferred shares, authorized 8,000,000 shares, 8% Series A | |||||||||||||||
cumulative redeemable preferred shares, | |||||||||||||||
stated at redemption value, $50 | |||||||||||||||
per share | $ | 100,000 | $ | 0 | $ | 0 | $ | 100,000 | |||||||
Common shares authorized | |||||||||||||||
50,000,000 shares, $25 par value | 526,075 | 0 | 0 | 526,075 | |||||||||||
Accumulated other comprehensive income | 106 | 0 | 0 | 106 | |||||||||||
Earned surplus and other equities | (197,587) | 128,603 | (4,803)(4) | (73,787) | |||||||||||
Total Capital Shares and Equities | $ | 428,594 | $ | 128,603 | $ | (4,803) | 552,394 | ||||||||
Total Liabilities and Equities | $ | 1,365,441 | $ | (182,164) | $ | (43,242) | $ | 1,140,035 | |||||||
See accompanying Notes to Pro Forma Condensed Consolidated Balance Sheet
page 4
Farmland Industries, Inc. AND SUBSIDIARIES
(Debtors-In-Possession)
Notes to Pro Forma CONDENSED CONSOLIDATED Balance Sheet
(a) | Reflects Farmland's historical financial position at May 31, 2003. | |
(b) | Reflects pro forma adjustment to record the disposition of our beef marketing assets as reported in our Current Report on Form 8-K, dated August 15, 2003. | |
(c) | Pro forma adjustments to record the Pork Marketing Disposition as of May 31, 2003 reflect: | |
1) | The sale of certain assets and inventories and the assumption of certain liabilities to KC Acquisition, Inc. for cash; | |
2) | An escrow deposit for $7.5 million to be held until the final working capital calculation can be completed; | |
3) | Reversal of book/tax timing differences related to assets sold to and liabilities assumed by the buyers, largely offset by an increase in the valuation allowance for our deferred tax assets; | |
4) | The decrease in equity represents the loss we recognized on consummation of this transaction; | |
5) | The proceeds from disposition of $385.0 million, net of $7.5 million escrow deposit and $20.5 million in lower proceeds from the sale of working capital had the sale been consummated on May 31, 2003; | |
6) | The prepaid pension cost of $33.2 million was eliminated as a result of the transfer and assignment of the Pension Plan; and | |
7) | The remaining $15.3 million in deferred costs associated with our enterprise-wide integrated software system was written off as it pertained entirely to our pork marketing operations being sold. | |
page 5
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Year Ended August 31, 2000 | |||||||||||||||||
Pro Forma | Pro Forma | Pro Forma | |||||||||||||||
Adjustment | Adjustment | Adjustment | Farmland | ||||||||||||||
Crop Production | Beef Marketing | Pork Marketing | Combined | ||||||||||||||
Farmland | Disposition | Disposition | Disposition | Pro Forma | |||||||||||||
(a) | (b) | (c) | (d) | (e) | |||||||||||||
(Amounts in Thousands) | |||||||||||||||||
Sales | $ | 9,794,575 | $ | (889,238) | $ | (2,818,631) | $ | (1,676,540) | $ | 4,410,166 | |||||||
Cost of sales | 9,332,978 | (887,139) | (2,704,629) | (1,496,014) | 4,245,196 | ||||||||||||
Gross income | $ | 461,597 | $ | (2,099) | $ | (114,002) | $ | (180,526) | $ | 164,970 | |||||||
Selling, general and administrative |
|
|
|
|
(235,735) | ||||||||||||
Interest expense | (107,980) | 16,782 | 3,612 | 31,211 | (56,375) | ||||||||||||
Interest income | 9,877 | (52) | (496) | (142) | 9,187 | ||||||||||||
Other income (expense) | 26,695 | (25,829) | (580) | 3,848 | 4,134 | ||||||||||||
Equity in net income of investees | 56,891 | (10,016) | 0 | 0 | 46,875 | ||||||||||||
Minority owners' interest in net income | |||||||||||||||||
of subsidiaries | (24,996) | 0 | 25,554 | 0 | 558 | ||||||||||||
Loss from continuing operations before | |||||||||||||||||
income tax benefit | $ | (27,517) | $ | 6,111 | $ | (64,048) | $ | 19,068 | $ | (66,386) | |||||||
Income tax benefit | 18,136 | 0 | 1,100 | 0 | 19,236 | ||||||||||||
Loss from continuing operations | $ | (9,381) | $ | 6,111 | $ | 62,948 | $ | 19,068 | $ | (47,150) | |||||||
See accompanying Notes to Pro Forma Condensed Consolidated Statement of Operations
page 6
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Year Ended August 31, 2001 | ||||||||||||||||||||||||
Pro Forma | Pro Forma | Pro Forma | ||||||||||||||||||||||
Adjustment | Adjustment | Adjustment | Farmland | |||||||||||||||||||||
Crop Production | Beef Marketing | Pork Marketing | Combined | |||||||||||||||||||||
Farmland | Disposition | Disposition | Disposition | Pro Forma | ||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | ||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||||||
Sales | $ | 9,197,314 | $ | (637,492) | $ | (3,052,726) | $ | (1,657,938) | $ | 3,849,158 | ||||||||||||||
Cost of sales | 8,803,451 | (618,230) | (2,944,519) | (1,492,929) | 3,747,773 | |||||||||||||||||||
Gross income | $ | 393,863 | $ | (19,262) | $ | (108,207) | $ | (165,009) | $ | 101,385 | ||||||||||||||
Selling, general and administrative expenses |
|
| 25,210 |
|
| |||||||||||||||||||
Restructuring and other charges | (80,325) | 0 | 0 | 17,396 | (62,929) | |||||||||||||||||||
Interest expense | (118,237) | 24,476 | 2,742 | 31,545 | (59,474) | |||||||||||||||||||
Interest income | 12,535 | (494) | (588) | 5 | 11,458 | |||||||||||||||||||
Other income (expense) | 19,677 | (31,267) | (293) | 9,069 | (2,814) | |||||||||||||||||||
Equity in net income of investees | 27,457 | (7,136) | 0 | 0 | 20,321 | |||||||||||||||||||
Minority owners' interest in net income | ||||||||||||||||||||||||
of subsidiaries | (23,164) | 39 | 23,120 | 0 | (5) | |||||||||||||||||||
Loss from continuing operations before income tax benefit |
|
|
|
|
| (58,016) |
|
|
|
| ||||||||||||||
Income tax benefit | 27,619 | 0 | 913 | 0 | 28,532 | |||||||||||||||||||
Loss from continuing operations | $ | (103,785) | $ | (14,388) | $ | (57,103) | $ | 51,149 | $ | (124,127) | ||||||||||||||
See accompanying Notes to Pro Forma Condensed Consolidated Statement of Operations
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Year Ended August 31, 2002 | |||||||||||||||||||
Pro Forma | Pro Forma | Pro Forma | |||||||||||||||||
Adjustment | Adjustment | Adjustment | Farmland | ||||||||||||||||
Crop Production | Beef Marketing | Pork Marketing | Combined | ||||||||||||||||
Farmland | Disposition | Disposition | Disposition | Pro Forma | |||||||||||||||
(a) | (b) | (c) | (d) | (e) | |||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||
Sales | $ | 6,574,004 | $ | (450,533) | $ | (3,217,359) | $ | (1,622,362) | $ | 1,283,750 | |||||||||
Cost of sales | 6,330,287 | (459,605) | (3,114,062) | (1,422,724) | 1,333,896 | ||||||||||||||
Gross income | $ | 243,717 | $ | 9,072 | $ | (103,297) | $ | (199,638) | $ | (50,146) | |||||||||
Selling, general and administrative |
|
|
|
|
| ||||||||||||||
Restructuring and other charges | (51,876) | 2,639 | 0 | 0 | (49,237) | ||||||||||||||
Interest expense | (82,886) | 18,023 | 6,332 | 9,678 | (48,853) | ||||||||||||||
Interest income | 251 | 25 | (271) | 64 | 69 | ||||||||||||||
Other income (expense) | (15,804) | 5,828 | (3,693) | 12,330 | (1,339) | ||||||||||||||
Equity in net income of investees | 34,124 | (11,829) | 943 | 0 | 23,238 | ||||||||||||||
Minority owners' interest in net income | |||||||||||||||||||
of subsidiaries | (22,404) | 0 | 22,527 | 0 | 123 | ||||||||||||||
Reorganization expense | (69,114) | 9,368 | 0 | (751) | (60,497) | ||||||||||||||
Loss from continuing operations before | |||||||||||||||||||
income tax expense | $ | (303,591) | $ | 53,472 | $ | (53,953) | $ | (15,141) | $ | (319,213) | |||||||||
Income tax expense | (5,521) | 0 | (1,053) | 0 | (6,574) | ||||||||||||||
Loss from continuing operations | $ | (309,112) | $ | 53,472 | $ | (55,006) | $ | (15,141) | $ | (325,787) | |||||||||
See accompanying Notes to Pro Forma Condensed Consolidated Statement of Operations
page 8
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
(UNAUDITED)
Nine Months Ended May 31, 2002 | ||||||||||||||||
Pro Forma | Pro Forma | |||||||||||||||
Adjustment | Adjustment | Farmland | ||||||||||||||
Beef Marketing | Pork Marketing | Combined | ||||||||||||||
Farmland | Disposition | Disposition | Pro Forma | |||||||||||||
(a) | (c) | (d) | (e) | |||||||||||||
(Amounts in Thousands) | ||||||||||||||||
Sales | $ | 4,644,583 | $ | (2,385,948) | $ | (1,243,141) | $ | 1,015,494 | ||||||||
Cost of sales | 4,486,546 | (2,326,592) | (1,104,409) | 1,055,545 | ||||||||||||
Gross income | $ | 158,037 | $ | (59,356) | $ | (138,732) | $ | (40,051) | ||||||||
Selling, general and administrative |
|
|
|
| ||||||||||||
Restructuring and other credits | (49,237) | 0 | 0 | (49,237) | ||||||||||||
Interest expense | (58,997) | 4,895 | 8,218 | (45,884) | ||||||||||||
Interest income | 1,662 | (95) | 52 | 1,619 | ||||||||||||
Other income (expense) | (1,368) | (4,128) | 2,572 | (2,924) | ||||||||||||
Equity in net income of investees | 22,572 | 719 | 0 | 23,291 | ||||||||||||
Minority owners' interest in net income of subsidiaries |
|
|
|
| ||||||||||||
Reorganization expense | (54,719) | 0 | 0 | (54,719) | ||||||||||||
Loss from continuing operations before | ||||||||||||||||
income tax benefit | $ | (230,857) | $ | (28,915) | $ | (7,316) | $ | (267,088) | ||||||||
Income tax benefit | 54,764 | 0 | 0 | 54,764 | ||||||||||||
Loss from continuing operations | $ | (176,093) | $ | (28,915) | $ | (7,316) | $ | (212,324) | ||||||||
See accompanying Notes to Pro Forma Condensed Consolidated Statement of Operations
page 9
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Nine Months Ended May 31, 2003 | |||||||||||||||
Pro Forma | Pro Forma | ||||||||||||||
Adjustment | Adjustment | Farmland | |||||||||||||
Beef Marketing | Pork Marketing | Combined | |||||||||||||
Farmland | Disposition | Disposition | Pro Forma | ||||||||||||
(a) | (c) | (d) | (e) | ||||||||||||
(Amounts in Thousands) | |||||||||||||||
Sales | $ | 4,834,785 | $ | (2,621,845) | $ | (1,207,402) | $ | 1,005,538 | |||||||
Cost of sales | 4,610,713 | (2,560,021) | (1,065,486) | 985,206 | |||||||||||
Gross income | $ | 224,072 | $ | (61,824) | $ | (141,916) | $ | 20,332 | |||||||
Selling, general and administrative expenses | (167,510) | 18,747 | 110,741 | (38,022) | |||||||||||
Restructuring and other credits | 557 | 0 | 0 | 557 | |||||||||||
Interest expense | (20,906) | 3,707 | 3,788 | (13,411) | |||||||||||
Interest income | 1,139 | (437) | 3 | 705 | |||||||||||
Other income (expense) | 53,473 | (2,778) | 1,004 | 51,699 | |||||||||||
Equity in net income of investees | 17,410 | 978 | 0 | 18,388 | |||||||||||
Minority owners' interest in net income of subsidiaries |
|
|
|
| |||||||||||
Reorganization expense | (453,871) | 0 | 18,029 | (435,842) | |||||||||||
Loss from continuing operations before | |||||||||||||||
income tax benefit (expense) | $ | (357,782) | $ | (29,580) | $ | (8,351) | $ | (395,713) | |||||||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | |||||||||||
Loss from continuing operations | $ | (357,782) | $ | (29,580) | $ | (8,351) | $ | (395,713) | |||||||
See accompanying Notes to Pro Forma Condensed Consolidated Statement of Operations
page 10
FARMLAND INDUSTRIES, INC. AND SUBSIDIARIES
(Debtors-in-Possession)
NOTES TO PRO FORMA CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
NINE MONTHS ENDED MAY 31, 2002 AND 2003 AND
YEARS ENDED AUGUST 31, 2000, 2001 AND 2002
| (a) | Reflects Farmland's historical operating results for the nine months ended May 31, 2002 and 2003 and for the years ended August 31, 2000, 2001 and 2002. | |
| (b) | Reflects pro forma adjustment to record the disposition of a significant portion of our domestic and foreign nitrogen assets as reported in our Current Report on Form 8-K, dated June 4, 2003. | |
| (c) | Reflects pro forma adjustment to record the disposition of our beef marketing assets as reported in our Current Report on Form 8-K, dated August 15, 2003. | |
| (d) | Pro forma adjustments to record the Pork Marketing Disposition for the nine months ended May 31, 2002 and 2003, and for the years ended August 31, 2000, 2001 and 2002 reflect the following directly identifiable items: | |
| 1) | The effect of excluding sales, cost of sales, selling, general and administrative expenses, interest expense and other expenses associated with the Pork Marketing Disposition. | |
| (e) | Based on information currently available, Management estimates that the transactions described in this filing will result in a loss, net of taxes, of approximately $4 million. This loss is not reflected in these pro forma statements of operations. This loss will be recognized in the first quarter ending November 30, 2003. | |
page 11
Exhibits | |
2.A | Amended and Restated Asset Sale and Purchase Agreement between Farmland Industries, Inc. and KC Acquisition, Inc., dated October 12, 2003. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
FARMLAND INDUSTRIES, INC. | |
(Registrant) | |
| By: | /s/ STEVEN R. RHODES |
Steven R. Rhodes | |
Executive Vice President | |
and Chief Financial Officer |
Date: November 12, 2003
2.A | Amended and Restated Asset Sale and Purchase Agreement between Farmland Industries, Inc. and KC Acquisition, Inc., dated October 12, 2003. |
page 12
