Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
See Item 11, Executive Compensation pages 18-20. During fiscal 1996,
the President and CEO, Clark D. Stewart, exercised his option to purchase
400,000 shares of the Company's common stock under the terms of the 1989
Nonqualified Stock Option Plan through a loan by the Company. The shares
were purchased at prices ranging from $.70 to $1.00 per share. The largest
aggregate amount of indebtedness outstanding was $367,000 during fiscal
1996. The amount outstanding at June 27, 1996, is $359,027. Interest is
charged at the prime rate beginning May 1, 1996.
