Pacific Grove Spice Company

Exhibit 1 - Income Statement ($ in millions except for price per share)

Income Statement 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Net Sales $46.180 $53.107 $57.887 $68.017 $80.940 $93.081 $105.182 $116.751 $127.259 8100000 8505000 8930250 9376763 9845601
Cost of Goods Sold 26.784 30.802 33.575 39.790 47.512 54.452 61.531 68.300 74.447 4738500 4975425 5224196 5485406 5759676
Gross Profit Margin 19.396 22.305 24.312 28.227 33.428 38.629 43.650 48.452 52.813 115.0271

R&D Expense 0.739 0.850 0.926 1.088 1.295 1.489 1.683 1.868 2.036
SG&A Expense 14.916 17.260 18.871 21.902 26.063 29.321 33.132 36.777 40.087
Earnings Before Interest & Taxes 3.741 4.195 4.515 5.237 6.070 7.819 8.835 9.807 10.690

Interest Expense 2.906 2.940 2.668 2.423 2.817 3.237 3.582 3.894 4.124
Earnings Before Income Taxes 0.835 1.255 1.847 2.814 3.253 4.581 5.254 5.913 6.566

Income Taxes 0.225 0.339 0.499 0.760 0.879 1.237 1.418 1.597 1.773
Net Income 0.610 0.916 1.348 2.054 2.374 3.344 3.835 4.316 4.793

Growth rate of sale 15.00% 9.00% 17.50% 19.00% 15.00% 13.00% 11.00% 9.00%
Income tax rate assumed 27.00% 27.00% 27.00% 27.00%
Price/Earnings Ratio 16.0
Market Value of Equity $37.990

Common Shares Outstanding 1,165,327 1,165,327 1,165,327 1,165,327 1,165,327

New number of outstanding shares 1,565,327 1,565,327 1,565,327 1,565,327 1,565,327
Price per share $32.60

Note: 2012-2015 are projected data

06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

EPS share - before 2.04 2.87 3.29 3.70 4.11
EPS share - before 1.52 2.14 2.45 2.76 3.06
Difference 0.52 0.73 0.84 0.95 1.05
Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Cash $2.325 $2.680 $2.924 $3.440 $4.102 $4.672 $5.279 $5.860 $6.387
Accounts Receivable 9.489 10.912 11.895 13.976 16.632 19.126 21.613 23.990 26.149
Inventories 6.697 7.701 8.394 9.947 11.878 13.613 15.383 17.075 18.612
Prepaid Expenses 0.770 0.840 0.910 0.828 0.969 1.117 1.262 1.401 1.527
Total Current Assets 19.281 22.133 24.123 28.191 33.581 38.528 43.537 48.326 52.675

Net Property & Equipment * 15.200 16.000 17.300 19.100 22.400 25.157 28.427 31.554 34.395
Other Long-Term Assets 2.241 2.479 2.671 3.074 3.639 4.189 4.733 5.254 5.727
Total Assets 36.722 40.612 44.094 50.365 59.620 67.874 76.697 85.134 92.797

Growth rate of assets 10.6% 8.6% 14.2% 18.4% 13.8% 13.0% 11.0% 9.0%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Bank Notes Payable $7.669 $8.820 $9.613 $11.295 $13.442 $15.492 $17.506 $19.432 $21.181
Accounts Payable 2.203 2.532 2.760 3.271 3.905 4.476 5.057 5.614 6.119
Current Portion of Long-Term Debt 0.973 1.060 1.124 1.240 1.483 1.614 1.751 1.842 1.869
Accrued Expenses 0.771 0.884 0.965 1.129 1.345 1.545 1.746 1.938 2.113
Total Current Liabilities 11.616 13.296 14.462 16.935 20.175 23.127 26.061 28.826 31.282

Long-Term Debt 14.600 15.894 16.862 18.606 22.247 24.204 26.258 27.614 28.028
Total Liabilities 26.216 29.190 31.324 35.541 42.422 47.331 52.319 56.440 59.310

Common Stock 6.881 6.881 6.881 6.881 6.881 6.881 6.881 6.881 6.881
Retained Earnings 3.625 4.541 5.889 7.943 10.317 13.661 17.497 21.813 26.606
Total Shareholder Equity 10.506 11.422 12.770 14.824 17.198 20.543 24.378 28.694 33.488

Total Liabilities & Net Worth 36.722 40.612 44.094 50.365 59.620 67.874 76.697 85.134 92.797

* Net property & equipment for all years is calculated as net property & equipment from the prior year, plus capital expenditures in the same year, minus
depreciation expense in the same year. Depreciation expense is included in reported operating expenses; it is not broken out separately.

Note: 2012-2015 are projected data

Pacific Grove Spice Company

Exhibit 3 - Capital Budgeting Analysis of Television Program Opportunity

Initial Investment Cash Flows Year 0

Equipment -$1,440,000

Growth Rate of Sales 5.0% 5.0% 5.0% 5.0%

Operating Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5

Sales $8,100,000 $8,505,000 $8,930,250 $9,376,763 $9,845,601

Cost of Goods Sold at 58.5% of sales 4,738,500 4,975,425 5,224,196 5,485,406 5,759,676
Gross Profit Margin 3,361,500 3,529,575 3,706,054 3,891,356 4,085,924

Promotion Expense at 11% of sales 891,000 935,550 982,328 1,031,444 1,083,016

General & Administrative Expense 760,000 798,000 837,900 879,795 923,785
Depreciation Expense 288,000 288,000 288,000 288,000 288,000
Incremental Operating Profit 1,422,500 1,508,025 1,597,826 1,692,118 1,791,123

Income Taxes at 27% 384,075 407,167 431,413 456,872 483,603

Incremental Net Income 1,038,425 1,100,858 1,166,413 1,235,246 1,307,520

+ Depreciation Expense 288,000 288,000 288,000 288,000 288,000

Incremental Operating Cash Flow 1,326,425 1,388,858 1,454,413 1,523,246 1,595,520

Yearly Net Working Capital Investment Year 1 Year 2 Year 3 Year 4 Year 5
Additional A/R at 75 Days Sales Outstanding $1,664,384 $83,219 $87,380 $91,749 $96,337
Additional Inventory at 4 Inventory Turns 1,184,625 59,231 62,193 65,302 68,568
Additional A/P at 30 Days COGS 389,466 19,473 20,447 21,469 22,543
Total NWC Investment -2,459,543 -122,977 -129,126 -135,582 -142,361

Terminal Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5

Recovery of NWC $2,989,590

Total Project Cash Flows -$1,440,000 -$1,133,118 $1,265,881 $1,325,287 $1,387,664 $4,442,748

Internal Rate of Return 41.28%

Net Present Value at 20% $1,716,414

Net Present Value at 15% $2,405,498
Net Present Value at 10% $3,278,174
Income Statement 06/30/07 06/30/08 06/30/09

Net Sales $46.180 $53.107 $57.887

Cost of Goods Sold $26.784 $30.802 $33.575
Gross Profit Margin 19.396 22.305 24.312

R&D Expense 0.739 0.850 0.926

SG&A Expense 14.916 17.260 18.871
Earnings Before Interest & Taxes 3.741 4.195 4.515

Interest Expense 2.906 2.940 2.668

Earnings Before Income Taxes 0.835 1.255 1.847

Income Taxes 0.225 0.339 0.499

Net Income 0.610 0.916 1.348

Growth rate of sale 15.00% 9.00%

Income tax rate assumed
Price/Earnings Ratio
Market Value of Equity

Common Shares Outstanding

Price per share

Note: 2012-2015 are projected data

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09

Cash $2.325 $2.680 $2.924

Accounts Receivable 9.489 10.912 11.895
Inventories 6.697 7.701 8.394
Prepaid Expenses 0.770 0.840 0.910
Total Current Assets 19.281 22.133 24.123

Net Property & Equipment * 15.200 16.000 17.300

Other Long-Term Assets 2.241 2.479 2.671
Total Assets 36.722 40.612 44.094

Growth rate of assets 10.6% 8.6%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09

Bank Notes Payable $7.669 $8.820 $9.613

Accounts Payable 2.203 2.532 2.760
Current Portion of Long-Term Debt 0.973 1.060 1.124
Accrued Expenses 0.771 0.884 0.965
Total Current Liabilities 11.616 13.296 14.462

Long-Term Debt 14.600 15.894 16.862

Total Liabilities 26.216 29.190 31.324

Common Stock 6.881 6.881 6.881

Retained Earnings 3.625 4.541 5.889
Total Shareholder Equity 10.506 11.422 12.770

Total Liabilities & Net Worth 36.722 40.612 44.094

 06/30/07 06/30/08 06/30/09
Interest-bearing debt to total assets 60.64% 60.85% 60.04%
Equity multiplier 3.56 3.45
06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

$68.017 $80.940 $101.181 $113.687 $125.682

$39.790 $47.512 $59.191 $66.507 $73.524
28.227 33.428 41.990 47.180 52.158

1.088 1.295 2.380 2.618 2.850

21.902 26.063 30.369 34.218 37.903
5.237 6.070 9.241 10.343 11.405

2.423 2.817 3.237 3.582 3.894

2.814 3.253 6.004 6.762 7.511

0.760 0.879 1.621 1.826 2.028

2.054 2.374 4.383 4.936 5.483

17.50% 19.00% 15.00% 13.00% 11.00%

27.00% 27.00% 27.00%
16.0
$37.990

1,165,327
$32.60 $4.67
$19.13
13.61309625
1.116972

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

$3.440 $4.102 $5.038 $5.663 $6.262

13.976 16.632 20.791 23.360 25.825
9.947 11.878 14.798 16.627 18.381
0.828 0.969 1.214 1.364 1.508
28.191 33.581 41.840 47.014 51.976

19.100 22.400 26.309 29.579 32.706

3.074 3.639 4.553 5.116 5.656
50.365 59.620 72.702 81.709 90.338

14.2% 18.4% 21.9% 12.4% 10.6%

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

$11.295 $13.442 $16.840 $18.922 $20.918

3.271 3.905 4.865 5.466 6.043
1.240 1.483 1.614 1.751 1.842
1.129 1.345 1.680 1.887 2.086
16.935 20.175 24.999 28.027 30.889

18.606 22.247 24.204 26.258 27.614

35.541 42.422 49.203 54.285 58.503

6.881 6.881 6.881 6.881 6.881

7.943 10.317 14.700 19.636 25.119
14.824 17.198 21.581 26.517 32.000

50.365 59.620 70.785 80.802 90.504

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14
61.83% 62.35% 58.68% 57.44% 55.76%
3.40 3.47 3.37 3.08 2.82
06/30/15

$136.636
$79.932
56.704

3.068
41.254
12.382

4.124
8.258

2.230
6.029

9.00%
27.00%

06/30/15

$6.808
28.076
19.983
1.640
56.507

35.547
6.149
98.203

8.7%

06/30/15

$22.741
6.570
1.869
2.268
33.449

28.028
61.477

6.881
31.147
38.029

99.505
06/30/15
53.60%
2.58
Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11

New cash from new shares 0 0 0 0 0

Cash $2.325 $2.680 $2.924 $3.440 $4.102
Accounts Receivable 9.489 10.912 11.895 13.976 16.632
Inventories 6.697 7.701 8.394 9.947 11.878
Prepaid Expenses 0.770 0.840 0.910 0.828 0.969
Total Current Assets 19.281 22.133 24.123 28.191 33.581

Net Property & Equipment * 15.200 16.000 17.300 19.100 22.400

Other Long-Term Assets 2.241 2.479 2.671 3.074 3.639
Total Assets 36.722 40.612 44.094 50.365 59.620

Growth rate of assets 10.6% 8.6% 14.2% 18.4%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11

Bank Notes Payable $7.669 $8.820 $9.613 $11.295 $13.442

Accounts Payable 2.203 2.532 2.760 3.271 3.905
Current Portion of Long-Term Debt 0.973 1.060 1.124 1.240 1.483
Accrued Expenses 0.771 0.884 0.965 1.129 1.345
Total Current Liabilities 11.616 13.296 14.462 16.935 20.175

Long-Term Debt 14.600 15.894 16.862 18.606 22.247

Total Liabilities 26.216 29.190 31.324 35.541 42.422

Common Stock 6.881 6.881 6.881 6.881 6.881

New shares 0.000 0.000 0.000 0.000 0.000
Retained Earnings 3.625 4.541 5.889 7.943 10.317
Total Shareholder Equity 10.506 11.422 12.770 14.824 17.198

Total Liabilities & Net Worth 36.722 40.612 44.094 50.365 59.620

06/30/07 06/30/08 06/30/09 06/30/10 06/30/11

Interest-bearing debt to total assets 63.29% 63.46% 62.59% 61.83% 62.35%
Equity multiplier 3.56 3.45 3.40 3.47
Bank notes payableAccounts Receivable 80.82% 80.83% 80.82% 80.82% 80.82%

Before After Before ownership % After ownership %

Orginal number of outstanding shares 1165327
Current number of outstanding shares 1565327
Founders 291331.75 291331.75 25.00% 18.61%
Peterson 81572.89 81572.89 7.00% 5.21%
Combined holdering (founders + peterson) 372904.64 372904.64 32.00% 23.82%
Investment firm 400000 25.55%

Pre New After

Shares 1165327 400000 1565327
Share prices 32.6 27.5 31.2967579298128
Market cap 37.9896602 11 48.9896602
06/30/12 06/30/13 06/30/14 06/30/15

0.000 0.000 0.000 0.000 0

$4.672 $5.279 $5.860 $6.387
19.126 21.613 23.990 26.149
13.613 15.383 17.075 18.612
1.117 1.262 1.401 1.527
38.528 43.537 48.326 52.675

25.157 28.427 31.554 34.395

4.189 4.733 5.254 5.727
67.874 76.697 85.134 92.797

13.8% 13.0% 11.0% 9.0%

06/30/12 06/30/13 06/30/14 06/30/15

$4.492 $6.506 $8.432 $10.181

4.476 5.057 5.614 6.119
1.614 1.751 1.842 1.869
1.545 1.746 1.938 2.113
12.127 15.061 17.826 20.282

24.204 26.258 27.614 28.028

36.331 41.319 45.440 48.310

6.881 6.881 6.881 6.881 Share price 27.5

11.000 11.000 11.000 11.000 new shares 400000
13.661 17.497 21.813 26.606
31.543 35.378 39.694 44.488

67.874 76.697 85.134 92.797

06/30/12 06/30/13 06/30/14 06/30/15

44.66% 45.00% 44.50% 43.19%
2.15 2.17 2.14 2.09
23.49% 30.10% 35.15% 38.93%
Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11

New cash from new shares 0 0 0 0 0

Cash $2.325 $2.680 $2.924 $3.440 $4.102
Accounts Receivable 9.489 10.912 11.895 13.976 16.632
Inventories 6.697 7.701 8.394 9.947 11.878
Prepaid Expenses 0.770 0.840 0.910 0.828 0.969
Total Current Assets 19.281 22.133 24.123 28.191 33.581

Net Property & Equipment * 15.200 16.000 17.300 19.100 22.400

Other Long-Term Assets 2.241 2.479 2.671 3.074 3.639
Total Assets 36.722 40.612 44.094 50.365 59.620

Growth rate of assets 10.6% 8.6% 14.2% 18.4%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11

Bank Notes Payable $7.669 $8.820 $9.613 $11.295 $13.442

Accounts Payable 2.203 2.532 2.760 3.271 3.905
Current Portion of Long-Term Debt 0.973 1.060 1.124 1.240 1.483
Accrued Expenses 0.771 0.884 0.965 1.129 1.345
Total Current Liabilities 11.616 13.296 14.462 16.935 20.175

Long-Term Debt 14.600 15.894 16.862 18.606 22.247

Total Liabilities 26.216 29.190 31.324 35.541 42.422

Common Stock 6.881 6.881 6.881 6.881 6.881

New shares 0.000 0.000 0.000 0.000 0.000
Retained Earnings 3.625 4.541 5.889 7.943 10.317
Total Shareholder Equity 10.506 11.422 12.770 14.824 17.198

Total Liabilities & Net Worth 36.722 40.612 44.094 50.365 59.620

06/30/07 06/30/08 06/30/09 06/30/10 06/30/11

Interest-bearing debt to total assets 63.29% 63.46% 62.59% 61.83% 62.35%
Equity multiplier 3.56 3.45 3.40 3.47

Before After Before ownership % After ownership %

Orginal number of outstanding shares 1165327
Current number of outstanding shares 1565327
Founders 291331.75 291331.75 25.00% 18.61%
Peterson 81572.89 81572.89 7.00% 5.21%
Combined holdering (founders + peterson) 372904.64 372904.64 32.00% 23.82%
Investment firm 400000 25.55%
06/30/12 06/30/13 06/30/14 06/30/15

11.000 11.000 11.000 11.000

$4.672 $5.279 $5.860 $6.387
19.126 21.613 23.990 26.149
13.613 15.383 17.075 18.612
1.117 1.262 1.401 1.527
49.528 54.537 59.326 63.675

25.157 28.427 31.554 34.395

4.189 4.733 5.254 5.727
78.874 87.697 96.134 103.797

32.3% 11.2% 9.6% 8.0%

06/30/12 06/30/13 06/30/14 06/30/15

$15.492 $17.506 $19.432 $21.181

4.476 5.057 5.614 6.119
1.614 1.751 1.842 1.869
1.545 1.746 1.938 2.113
23.127 26.061 28.826 31.282

24.204 26.258 27.614 28.028

47.331 52.319 56.440 59.310

6.881 6.881 6.881 6.881 Share price 27.5

11.000 11.000 11.000 11.000 new shares 400000
13.661 17.497 21.813 26.606
31.543 35.378 39.694 44.488

78.874 87.697 96.134 103.797

06/30/12 06/30/13 06/30/14 06/30/15

52.38% 51.90% 50.85% 49.21%
2.50 2.48 2.42 2.33
Pacific Grove Spice Company

Exhibit 4 - High Country Seasonings Income Statement ($ in millions)

Forecasted period
Income Statement 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Net Sales $15.401 $15.919 $16.664 $17.564 $18.793 $19.921 $20.917 $21.921
Cost of Goods Sold 9.887 10.284 10.732 11.329 11.558 11.654 12.237 12.824
Gross Profit Margin 5.514 5.635 5.932 6.235 7.235 8.267 8.681 9.097

R&D Expense 0.000 0.000 0.000 0.000 0.188 0.319 0.335 0.351
SG&A Expense 4.359 4.553 4.816 5.041 5.657 6.275 6.589 6.905
Earnings Before Interest & Taxes 1.155 1.082 1.116 1.194 1.391 1.673 1.757 1.841

Interest Expense 0.057 0.072 0.060 0.063 0.065 0.110 0.073 0.030
Earnings Before Income Taxes 1.098 1.010 1.056 1.131 1.325 1.563 1.684 1.811

Income Taxes 0.297 0.273 0.285 0.306 0.358 0.422 0.455 0.489
Net Income 0.801 0.737 0.771 0.825 0.967 1.141 1.230 1.322

Dividends Paid 0.288 0.254 0.422 0.401 0 0.000 0.000 0.000

2012 2013 Interest rate 7.25%

61.50% 58.50% prime rate 3.25%
1.00% 1.60% premium 4.00%
30.10% 31.50% Tax rate 0.27
Pacific Grove Spice Company

Exhibit 5 - High Country Seasonings Balance Sheet ($ in millions)

Forecasted period
Assets 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Cash $0.585 $0.610 $0.639 $0.673 $0.954 $1.000 $1.050 $1.100

Accounts Receivable 3.165 3.271 3.424 3.609 3.862 4.093 4.298 4.504
Inventories 2.060 2.142 2.236 2.360 2.889 2.913 3.059 3.206
Prepaid Expenses 0.231 0.239 0.250 0.263 0.226 0.239 0.251 0.263
Total Current Assets 6.041 6.262 6.549 6.905 7.930 8.246 8.658 9.074

Net Property & Equipment * 3.831 4.146 4.273 4.424 4.698 4.980 5.229 5.480
Other Long-Term Assets 0.462 0.477 0.500 0.527 0.846 0.896 0.941 0.986
Total Assets 10.334 10.885 11.322 11.856 13.474 14.122 14.829 15.540

Liabilities + Owners' Equity 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Bank Notes Payable $0.791 $0.818 $0.856 $0.902 1.52 1.00 0.41 -0.26
Accounts Payable 0.813 0.845 0.882 0.931 0.950 0.958 1.006 1.054
Current Portion of Long-Term Debt 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Accrued Expenses 0.262 0.271 0.283 0.299 0.312 0.331 0.347 0.364
Total Current Liabilities 1.866 1.934 2.021 2.132 2.783 2.290 1.766 1.156

Long-Term Debt 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Total Liabilities 1.866 1.934 2.021 2.132 2.783 2.290 1.766 1.156

Common Stock 4.584 4.584 4.584 4.584 4.584 4.584 4.584 4.584
Retained Earnings 3.884 4.367 4.716 5.140 6.107 7.249 8.478 9.801
Total Shareholder Equity 8.468 8.951 9.300 9.724 10.691 11.833 13.062 14.385

Total Liabilities & Net Worth 10.334 10.885 11.321 11.856 13.474 14.122 14.829 15.540

0.000 0.000 0.000 0.000

1.52091690404 1.001391068429 0.413 -0.26204583156
6.83%
Orginal number of outstanding shares 404908 13.20
Share price $32.600 total Value $14.102 6.40%

* Net property & equipment for all years is calculated as net property & equipment from the
prior year, plus capital expenditures in the same year, minus depreciation expense in the
same year. Depreciation expense is included in reported operating expenses; it is not
broken out separetely.

Cash 5.48%
accounts receivable 20.55%
Inventories & Net Prop 4
prepaid expenses 1.20%
other long-term assets 4.50%
accounts payable 8.22%
accrued expenses 1.66%

Net Property & Equipment 3.831 4.146 4.273 4.424 4.698 4.980 5.229 5.480
Depreciation 0.306 0.332 0.342 0.354 0.376 0.398 0.418 0.438 0.08 Assumed depreication rate
CAPEX 0.647 0.469 0.505 0.650 0.680 0.667 0.689
4.137 4.478 4.615 4.778 5.074 5.379 5.648 5.919

Cost of Goods Sold 9.9 10.3 10.7 11.3 11.6 11.7 12.2 12.8

R&D Expense 0.0 0.0 0.0 0.0 0.2 0.3 0.3 0.4
SG&A Expense 4.4 4.6 4.8 5.0 5.7 6.3 6.6 6.9

Part of COGS in operation expense 0.639 0.64 0.638 0.639

Average part of COGS in operating ex 0.639

Operating expenses 14.2 14.8 15.5 16.4 17.4 18.2 19.2 20.1
 Forecasted period
06/30/10 06/30/11 06/30/12 06/30/13
EBIT 1.194 1.391 1.673
Tax 0.322 0.375 0.452
EBI 0.872 1.015 1.222
Depreciation 0.354 0.376 0.398

CAPEX 0.505 0.650 0.680

Change in net working capital 0.291 0.993 0.289
Change in other long-term assets 0.530 0.316 0.051

Free cash flow -0.100 -0.568 0.600

Terminal value
Discount rate 1.07 1.15
-0.53 0.52

Enterprise value 22.10

Purchase price 13.20

debt 0.90
NPV 8.00

Net working capital 5.38 5.67 6.67 6.96

Other long-term assets 0.53 0.85 0.90

Difference between 0.151 0.274 0.282

Forecasted period
06/30/14 06/30/15
1.757 1.841 Assumptions
0.474 0.497 Tax rate 27.00%
1.283 1.344 Risk free rate 4.25%
0.418 0.438 Market Risk Premium, S&P 500 vs. 7.00%
Long-term Treasuries
0.667 0.689 Cost of debt 7.25%
0.348 0.351 Industry beta on assets 0.443
0.045 0.045 Beta on equity - levered 0.473
Debt to equity % 6.83%
0.641 0.697 debt to value % 6.40%
28.04 Equity of value % 93.17%
1.24 1.33 Cost of equity 7.56%
0.52 21.59 WACC 7.41%
Long-term growth rate 4.80%

Long-term asset % of sale 4.50%

7.31 7.66

0.94 0.99

0.249 0.251 Interest rate 7.25%

prime rate 3.25%
premium 4.00%
Pacific Grove Spice Company

Exhibit 6 - Industry Information

McCormick & Company* ConAgra Foods** Pacific Grove Spice Co.

2010 2011 2010 2011 2010 2011

Sales revenue (in millions) $3,336.8 $3,440.5 $12,014.9 $12,303.1 $68.0 $80.9
Net income (in millions) $370.2 $386.5 $725.8 $817.0 $2.1 $2.4
Earnings per share $2.79 $2.92 $1.63 $1.90 $1.76 $2.04
Closing stock price $44.01 $49.60 $24.02 $25.76 $25.87 $32.60
Price/earnings ratio 15.8 17.0 14.7 13.6 14.7 16.0

Total liabilities (in millions) $1,957.0 $1,947.3 $6,809.1 $6,700.2 $35.5 $42.4
Interest-bearing debt (in millions) $880.3 $989.7 $3,487.2 $3,233.8 $31.1 $37.2

Book value of equity (in millions) $1,462.7 $1,642.1 $4,928.9 $4,708.5 $14.8 $17.2

Shares outstanding (in millions) 133.1 132.4 443.6 429.7 1.2 1.2
Market value of equity (in millions) $5,857.7 $6,567.0 $10,655.3 $11,069.1 $30.1 $38.0

Equity beta coefficient 0.50 0.60 0.85 0.65

Book value of debt 989.70 3233.80 37.17

Book value of equity 1642.10 4708.50 17.20

Market value of equity 6567.04 11069.07 37.98

Asset beta 0.43 0.46 0.43 0.44

* McCormick's fiscal year-end is November 30. The 2011 data presents the most recent four quarters of
income statement information and the May 31, 2011, balance sheet information.

** ConAgra's fiscal year-end is May 31. The 2011 data presents the full 2011 fiscal year.
Current market interest rates in July of 2011:

Long-term U.S. Treasury Bonds 4.25%

Long-term AA Corporate Bonds 5.20%

Long-Term BBB Corporate Bonds 5.65%

Market Risk Premium, S&P 500 vs. Long-term Treasuries 7.00%

Prime Interest Rate 3.25%

Pacific Grove Spice Company

Exhibit 1 - Income Statement ($ in millions except for price per share)

Income Statement 06/30/07 06/30/08 06/30/09 06/30/10

Net Sales $46.180 $53.107 $57.887 $68.017

Cost of Goods Sold 26.784 30.802 33.575 39.790
Gross Profit Margin 19.396 22.305 24.312 28.227

R&D Expense 0.739 0.850 0.926 1.088

SG&A Expense 14.916 17.260 18.871 21.902
Earnings Before Interest & Taxes 3.741 4.195 4.515 5.237

Interest Expense 2.906 2.940 2.668 2.423

Earnings Before Income Taxes 0.835 1.255 1.847 2.814

Income Taxes 0.225 0.339 0.499 0.760

Net Income 0.610 0.916 1.348 2.054
06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

$98.504 $111.874 $125.103 $137.669 $149.180

58.841 66.010 73.185 80.536 87.270
39.663 45.864 51.918 57.132 61.910

1.295 1.677 2.002 2.203 2.387

31.104 34.977 39.407 43.366 46.992
7.264 9.210 10.509 11.564 12.531

2.817 3.017 3.117 3.217 3.317

4.447 6.193 7.392 8.347 9.214

1.201 1.672 1.996 2.254 2.488

3.246 4.521 5.396 6.093 6.726
Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09

Cash $2.325 $2.680 $2.924

Accounts Receivable 9.489 10.912 11.895
Inventories 6.697 7.701 8.394
Prepaid Expenses 0.770 0.840 0.910
Total Current Assets 19.281 22.133 24.123

Net Property & Equipment * 15.200 16.000 17.300

Good will 0.000 0.000 0.000
Other Long-Term Assets 2.241 2.479 2.671
Total Assets 36.722 40.612 44.094

Growth rate of assets 10.6% 8.6%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09

Bank Notes Payable $7.669 $8.820 $9.613

Accounts Payable 2.203 2.532 2.760
Current Portion of Long-Term Debt 0.973 1.060 1.124
Accrued Expenses 0.771 0.884 0.965
Total Current Liabilities 11.616 13.296 14.462

Long-Term Debt 14.600 15.894 16.862

Total Liabilities 26.216 29.190 31.324

Common Stock 6.881 6.881 6.881

New shares 0.000 0.000 0.000
Retained Earnings 3.625 4.541 5.889
Total Shareholder Equity 10.506 11.422 12.770

Total Liabilities & Net Worth 36.722 40.612 44.094

06/30/07 06/30/08 06/30/09

Interest-bearing debt to total assets 63.29% 63.46% 62.59%
Equity multiplier 3.56 3.45

Before After Before ownership %

Orginal number of outstanding shares 1165327
New shares 404908
Shares after 1570235
Founders 291331.75 291331.75 25.00%
Peterson 81572.89 81572.89 7.00%
Combined holdering (founders + peterson) 372904.64 372904.64 32.00%
Investment firm 400000
 85.0911931863014 94.5625202558014 103.705348513999 112.080298387353
68.019874968011 76.4160442759207 84.7687184679443 92.6812574712453
06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

$3.440 $4.775 $5.625 $6.279 $6.910 $7.488

13.976 20.241 22.988 25.706 28.288 30.653
9.947 14.238 16.503 18.296 20.134 21.818
0.828 1.234 1.342 1.501 1.652 1.790
28.191 40.488 46.458 51.783 56.984 61.749

19.100 22.400 29.855 33.407 36.783 39.875

0.000 0.000 3.743 3.743 3.743 3.743
3.074 3.639 5.034 5.630 6.195 6.713
50.365 66.527 85.091 94.563 103.705 112.080

14.2% 32.1% 27.9% 11.1% 9.7% 8.1%

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

$11.295 $13.442 $17.071 $18.146 $18.937 $19.399

3.271 3.905 5.426 6.015 6.619 7.173
1.240 1.483 1.614 1.751 1.842 1.869
1.129 1.345 1.857 2.077 2.285 2.476
16.935 20.175 25.968 27.990 29.683 30.918

18.606 22.247 24.204 26.258 27.614 28.028

35.541 42.422 50.172 54.248 57.297 58.946

6.881 6.881 6.881 6.881 6.881 6.881

0.000 0.000 13.20 13.20 13.20 13.20
7.943 10.317 14.838 20.233 26.327 33.053
14.824 17.198 34.919 40.315 46.408 53.134

50.365 59.620 85.091 94.563 103.705 112.080

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

61.83% 55.87% 50.40% 48.81% 46.66% 43.98%
3.40 3.87 2.44 2.35 2.23 2.11

After ownership %

18.55%
5.19%
23.75%
25.47%
Not found correct

Share price 32.6

new shares 404908
Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09

Cash $2.325 $2.680 $2.924

Accounts Receivable 9.489 10.912 11.895
Inventories 6.697 7.701 8.394
Prepaid Expenses 0.770 0.840 0.910
Total Current Assets 19.281 22.133 24.123

Net Property & Equipment * 15.200 16.000 17.300

Good will 0.000 0.000 0.000
Other Long-Term Assets 2.241 2.479 2.671
Total Assets 36.722 40.612 44.094

Growth rate of assets 10.6% 8.6%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09

Bank Notes Payable $7.669 $8.820 $9.613

Accounts Payable 2.203 2.532 2.760
Current Portion of Long-Term Debt 0.973 1.060 1.124
Accrued Expenses 0.771 0.884 0.965
Total Current Liabilities 11.616 13.296 14.462

Long-Term Debt 14.600 15.894 16.862

Total Liabilities 26.216 29.190 31.324

Common Stock 6.881 6.881 6.881

New shares 0.000 0.000 0.000
Retained Earnings 3.625 4.541 5.889
Total Shareholder Equity 10.506 11.422 12.770

Total Liabilities & Net Worth 36.722 40.612 44.094

06/30/07 06/30/08 06/30/09

Interest-bearing debt to total assets 63.29% 63.46% 62.59%
Equity multiplier 3.56 3.45

Before After Before ownership %

Orginal number of outstanding shares 1165327
New shares 404908
Shares after 1570235
Founders 291331.75 291331.75 25.00%
Peterson 81572.89 81572.89 7.00%
Combined holdering (founders + peterson) 372904.64 372904.64 32.00%
Investment firm 400000
 69.3735884097956 77.5096851798538 85.3679000658351 92.704226306068

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

$3.440 $4.102 $5.991 $6.663 $7.312 $7.909

13.976 16.632 $24.652 $27.454 $30.123 $32.580
9.947 11.878 $17.687 $19.540 $21.440 $23.189
0.828 0.969 1.440 1.603 1.759 1.903
28.191 33.581 49.771 55.260 60.634 65.581

19.100 22.400 $31.007 $34.559 $37.935 $41.027

0.000 0.000 3.743 3.743 3.743 3.743
3.074 3.639 5.399 6.012 6.597 7.135
50.365 59.620 89.920 99.574 108.909 117.486

14.2% 18.4% 50.8% 10.7% 9.4% 7.9%

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

$11.295 $13.442 $20.546 $22.064 $23.541 $24.782

3.271 3.905 $5.815 $6.424 $7.049 $7.624
1.240 1.483 $1.614 $1.751 $1.842 $1.869
1.129 1.345 1.992 2.218 2.434 2.632
16.935 20.175 29.967 32.458 34.865 36.907

18.606 22.247 24.204 26.258 27.614 28.028

35.541 42.422 54.171 58.716 62.479 64.935

6.881 6.881 6.881 6.881 6.881 6.881

0.000 0.000 13.20 13.20 13.20 13.20
7.943 10.317 15.667 20.777 26.348 32.470
14.824 17.198 35.749 40.858 46.430 52.551

50.365 59.620 89.920 99.574 108.909 117.486

06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

61.83% 62.35% 51.56% 50.29% 48.66% 46.54%
3.40 3.47 2.52 2.44 2.35 2.24

After ownership %

18.55%
5.19%
23.75%
25.47%
Share price 32.6
new shares 404908