-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CZRlIvIytwl964V2eShWDErnqUA0WsKkG+w3xkORzQB68S3TalBt+d79KsRKn8yz O3QASEZg5solHYo6wFNPNg== 0000912057-02-004347.txt : 20020414 0000912057-02-004347.hdr.sgml : 20020414 ACCESSION NUMBER: 0000912057-02-004347 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20020207 GROUP MEMBERS: ARDELLE NICOLOFF GROUP MEMBERS: CHARLES BARRY GROUP MEMBERS: CHARMEL ENTERPRISES, INC. GROUP MEMBERS: CHARMEL LIMITED PARTNERSHIP GROUP MEMBERS: DR. DEMETRE NICOLOFF GROUP MEMBERS: EDWARD S. ADAMS GROUP MEMBERS: MARVIN W. GOLDSTEIN GROUP MEMBERS: MELANIE BARRY GROUP MEMBERS: NICOLOFF PROPERTIES PARTNERSHIP GROUP MEMBERS: RICHARD FITZGERALD GROUP MEMBERS: ROBERT C. KLAS, SR. GROUP MEMBERS: ROBERT H. PAYMAR GROUP MEMBERS: THE TEMPLE COMPANY, L.L.P. GROUP MEMBERS: TIMOTHY R. DUOOS GROUP MEMBERS: VIRTUALFUND.COM, INC. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CONE MILLS CORP CENTRAL INDEX KEY: 0000023304 STANDARD INDUSTRIAL CLASSIFICATION: BROADWOVEN FABRIC MILLS, COTTON [2211] IRS NUMBER: 560367025 STATE OF INCORPORATION: NC FISCAL YEAR END: 1229 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-33752 FILM NUMBER: 02529241 BUSINESS ADDRESS: STREET 1: 3101 N ELM ST STREET 2: PO BOX 26540 CITY: GREENSBORO STATE: NC ZIP: 27408 BUSINESS PHONE: 3363796220 MAIL ADDRESS: STREET 1: 3101 N ELM ST STREET 2: PO BOX 26540 CITY: GREENSBORO STATE: NC ZIP: 27415-6540 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: KOZBERG MARC H CENTRAL INDEX KEY: 0001072668 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4115 BUSINESS PHONE: 6123767035 MAIL ADDRESS: STREET 1: 90 SOUTH SEVENTH STREET STREET 2: SUITE 4400 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4115 SC 13D/A 1 a2069652zsc13da.txt SCHEDULE 13D/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D AMENDMENT NO. 14 Under the Securities Exchange Act of 1934 CONE MILLS CORPORATION -------------------------------------------------------- (Name of Issuer) Common Stock, $.10 par value -------------------------------------------------------- (Title of Class of Securities) 206814 10 5 -------------------------------------------------------- (CUSIP Number) Albert A. Woodward, Esq. Leonard, Street And Deinard, P.A. 150 South Fifth Street Suite 2300 Minneapolis, Minnesota 55402 (612) 335-1500 -------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) January 30, 2002 -------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [ ]. (Cover page continued on next 7 pages) SCHEDULE 13D CUSIP NO. 206814 10 5 - ------------------------------------------------------------------------------- (1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above Persons MARC H. KOZBERG - ------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member (a) /X/ of a Group* (b) / / - ------------------------------------------------------------------------------- (3) SEC Use Only - ------------------------------------------------------------------------------- (4) Source of Funds* PF - ------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- (6) Citizenship or Place of Organization USA - ------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Beneficially Owned Power 163,154 by Each Reporting -------------------------------------------------- Person With (8) Shared Voting Power -0- -------------------------------------------------- (9) Sole Dispositive Power 163,154 -------------------------------------------------- (10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 163,154 - ------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* - ------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) 0.6% - ------------------------------------------------------------------------------- (14) Type of Reporting Person* IN - ------------------------------------------------------------------------------- *SEE INSTRUCTION BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 206814 10 5 - ------------------------------------------------------------------------------- (1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above Persons DR. DEMETRE NICOLOFF - ------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member (a) /X/ of a Group* (b) / / - ------------------------------------------------------------------------------- (3) SEC Use Only - ------------------------------------------------------------------------------- (4) Source of Funds* PF - ------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- (6) Citizenship or Place of Organization USA - ------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Beneficially Owned Power 425,217 by Each Reporting -------------------------------------------------- Person With (8) Shared Voting Power -0- -------------------------------------------------- (9) Sole Dispositive Power 425,217 -------------------------------------------------- (10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 425,217 - ------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* - ------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) 1.7% - ------------------------------------------------------------------------------- (14) Type of Reporting Person* IN - ------------------------------------------------------------------------------- *SEE INSTRUCTION BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 206814 10 5 - ------------------------------------------------------------------------------- (1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above Persons EDWARD S. ADAMS - ------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member (a) /X/ of a Group* (b) / / - ------------------------------------------------------------------------------- (3) SEC Use Only - ------------------------------------------------------------------------------- (4) Source of Funds* PF - ------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- (6) Citizenship or Place of Organization USA - ------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Beneficially Owned Power 39,700 by Each Reporting -------------------------------------------------- Person With (8) Shared Voting Power 621,400 -------------------------------------------------- (9) Sole Dispositive Power 39,700 -------------------------------------------------- (10) Shared Dispositive Power 621,400 - ------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 651,100 - ------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* - ------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) 2.6% - ------------------------------------------------------------------------------- (14) Type of Reporting Person* IN - ------------------------------------------------------------------------------- *SEE INSTRUCTION BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 206814 10 5 - ------------------------------------------------------------------------------- (1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above Persons TIMOTHY R. DUOOS - ------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member (a) /X/ of a Group* (b) / / - ------------------------------------------------------------------------------- (3) SEC Use Only - ------------------------------------------------------------------------------- (4) Source of Funds* PF - ------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- (6) Citizenship or Place of Organization USA - ------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Beneficially Owned Power 26,800 by Each Reporting -------------------------------------------------- Person With (8) Shared Voting Power 601,400 -------------------------------------------------- (9) Sole Dispositive Power 26,800 -------------------------------------------------- (10) Shared Dispositive Power 601,400 - ------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 628,200 - ------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* - ------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) 2.5% - ------------------------------------------------------------------------------- (14) Type of Reporting Person* IN - ------------------------------------------------------------------------------- *SEE INSTRUCTION BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 206814 10 5 - ------------------------------------------------------------------------------- (1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above Persons NICOLOFF PROPERTIES PARTNERSHIP 41-1422867 - ------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member (a) /X/ of a Group* (b) / / - ------------------------------------------------------------------------------- (3) SEC Use Only - ------------------------------------------------------------------------------- (4) Source of Funds* WC - ------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- (6) Citizenship or Place of Organization MN - ------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Beneficially Owned Power 122,400 by Each Reporting -------------------------------------------------- Person With (8) Shared Voting Power -0- -------------------------------------------------- (9) Sole Dispositive Power 122,400 -------------------------------------------------- (10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 122,400 - ------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* - ------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) 0.5% - ------------------------------------------------------------------------------- (14) Type of Reporting Person* PN - ------------------------------------------------------------------------------- *SEE INSTRUCTION BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 206814 10 5 - ------------------------------------------------------------------------------- (1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above Persons ARDELLE NICOLOFF - ------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member (a) /X/ of a Group* (b) / / - ------------------------------------------------------------------------------- (3) SEC Use Only - ------------------------------------------------------------------------------- (4) Source of Funds* PF - ------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- (6) Citizenship or Place of Organization USA - ------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Beneficially Owned Power 122,400 by Each Reporting -------------------------------------------------- Person With (8) Shared Voting Power -0- -------------------------------------------------- (9) Sole Dispositive Power 122,400 -------------------------------------------------- (10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 122,400 - ------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* - ------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) 0.5% - ------------------------------------------------------------------------------- (14) Type of Reporting Person* IN - ------------------------------------------------------------------------------- *SEE INSTRUCTION BEFORE FILLING OUT! SCHEDULE 13D CUSIP NO. 206814 10 5 - ------------------------------------------------------------------------------- (1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above Persons ROBERT C. KLAS, SR. - ------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member (a) /X/ of a Group* (b) / / - ------------------------------------------------------------------------------- (3) SEC Use Only - ------------------------------------------------------------------------------- (4) Source of Funds* PF - ------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- (6) Citizenship or Place of Organization USA - ------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Beneficially Owned Power 474,127 by Each Reporting -------------------------------------------------- Person With (8) Shared Voting Power -0- -------------------------------------------------- (9) Sole Dispositive Power 474,127 -------------------------------------------------- (10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 474,127 - ------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* - ------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) 1.9% - ------------------------------------------------------------------------------- (14) Type of Reporting Person* IN - ------------------------------------------------------------------------------- *SEE INSTRUCTION BEFORE FILLING OUT! INTRODUCTION The Holders originally filed a Schedule 13D relating to Cone Mills Corporation (the "Issuer") on December 16, 1998. The original filing was amended on January 19, 1999, February 16, 1999, March 9, 1999, June 16, 1999, September 30, 1999, November 4, 1999, March 9, 2000, July 14, 2000, December 22, 2000, March 28, 2001, April 26, 2001, June 6, 2001 and November 13, 2001. This filing is the fourteenth amendment to the original Schedule 13D filing. The Holders' responses to Items 1 and 3 remain unchanged, and the Holders hereby restate the information contained in the original filing and subsequent amendments thereto for those items. ITEM 2. IDENTITY AND BACKGROUND This statement is filed jointly by the individuals and entity identified below (collectively the "Holders"). There have been no changes in the background, occupations, or addresses of the Holders since the filing of the last Schedule 13D Amendment to which this filing is an amendment. 1. Marc H. Kozberg 2. Dr. Demetre Nicoloff 3. Robert H. Paymar 4. The Temple Company, L.L.P. 5. Charmel Limited Partnership 6. Charmel Enterprises, Inc. 7. Richard Fitzgerald 8. Charles Barry 9. Melanie Barry 10. Marvin W. Goldstein 11. Robert C. Klas, Sr. 12. Nicoloff Properties Partnership 13. VirtualFund.com, Inc. 14. Ardelle Nicoloff 15. Edward S. Adams 16. Timothy R. Duoos ITEM 4. PURPOSE OF TRANSACTION. The Holders incorporate by reference their disclosures in Item 4 to their original Schedule 13D and prior amendments thereto. On January 30, 2002, certain representatives of the Holders met with representatives of the management of the Issuer for the purpose of exploring the possibility of engaging in a business combination transaction involving the Issuer, including the possible acquisition of certain of the Issuer's equity and debt securities. The Holders intend to have further discussions from time to time with the Issuer regarding such possibilities. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. Information with respect to the aggregate number, and percentage, of all outstanding Common Stock beneficially owned as of February 4, 2002 by each of the Holders is set forth below:
NUMBER OF SHARES PERCENTAGE OF NAME OF COMMON STOCK OUTSTANDING SHARES ---- --------------- ------------------ Marc H. Kozberg 163,154 0.6% Dr. Demetre Nicoloff 425,217 1.7% Robert H. Paymar 172,904 0.7% The Temple Company, L.L.P. 142,160 0.6% Charmel Limited Partnership 793,200 3.1% Charmel Enterprises, Inc. (2) 793,200 3.1% Richard Fitzgerald (1) 142,160 0.6% Charles Barry (1)(2)(6) 1,035,360 4.0% Melanie Barry (2) 793,200 3.1% Marvin W. Goldstein (5) 348,500 1.4% Robert C. Klas, Sr. 474,127 1.9% Nicoloff Properties Partnership 122,400 0.5% VirtualFund.com, Inc. 601,400 2.3% Ardelle Nicoloff (3) 122,400 0.5% Edward S. Adams (4)(7) 661,100 2.6% Timothy R. Duoos (4) 628,200 2.5%
(1) Includes 142,160 shares of Common Stock owned by The Temple Company, L.L.P. (2) Includes 793,200 shares of Common Stock owned by Charmel Limited Partnership (3) Includes 121,400 shares of Common Stock owned by Nicoloff Properties Partnership, over which Ms. Nicoloff exercises voting and dispositive control. (4) Includes 601,400 share of Common Stock owned by VirtualFund.com, Inc., over which Messrs. Adams and Duoos exercise voting and dispositive control. (5) Includes 2,000 shares of Common Stock held in custodial accounts for which Mr. Goldstein is the custodian. (6) Includes 100,000 shares of Common Stock held by Wells Fargo Bank, as Trustee of the Twin Cities Fan & Blower Co. Profit Sharing Plan FBO Charles Barry. (7) Includes 20,000 shares of Common Stock held by Mr. Adams' spouse. The Holders' responses to Items 7 through 13 of the cover pages of the statement are incorporated herein by reference. Cover pages have been included in this filing only to the extent a Holder's beneficial ownership in the securities of the Issuer has changed since the most recent filing of a Schedule 13D amendment to which this statement is an amendment. According to the Issuer's most recent Form 10-K filing with the SEC, the Issuer had 25,622,816 shares of Common Stock outstanding as of November 5, 2001. The Holders, as of February 4, 2002, collectively own 3,429,062 shares of the Issuer's Common Stock, constituting approximately 13.4% of the Issuer's outstanding voting Common Stock. The following transactions by the Holders in Common Stock of the Issuer have not been previously reported by the Holders in a Schedule 13D amendment:
TYPE OF NUMBER OF PRICE/ NAME DATE TRANSACTION SHARES SHARE ---- ---- ----------- ------ ----- Robert C. Klas, Sr. 11/13/01 Buy 2,300 $1.8126 Edward S. Adams (1) 11/28/01 Buy 2,500 $1.85 Edward S. Adams (1) 11/30/01 Buy 7,500 $1.80 Demetre Nicoloff 12/06/01 Buy 10,100 $1.79 Timothy R. Duoos 12/14/01 Buy 20,000 $1.78 Nicoloff Properties 12/17/01 Buy 1,000 $1.75 Demetre Nicoloff 12/20/01 Buy 1,000 $1.814 Edward S. Adams (1) 12/20/01 Buy 10,000 $1.75 Demetre Nicoloff 12/21/01 Buy 1,000 $1.84 Demetre Nicoloff 12/26/01 Buy 10,039 $1.7718 Demetre Nicoloff 12/27/01 Buy 800 $1.75 Marc H. Kozberg 12/28/01 Buy 5,000 $1.82
(1) Transaction made directly for the account of Mr. Adams' spouse. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. The Holders formed MK Acquisition, Inc., a Minnesota corporation, to act as their representative in possible transactions involving the Issuer and its securities. In connection therewith, the Holders have subscribed or will subscribe to purchase an aggregate of $30,000 of common stock of MK Acquisition, Inc. and will commit to loan up to an additional $100,000 to MK Acquisition, Inc. The related form of the Proposal and Share Subscription is attached hereto as Exhibit B. Messrs. Kozberg and Adams are the sole officers and directors of MK Acquisition, Inc. MK Acquisition, Inc. has engaged Libra Securities, LLC, Los Angeles, California, to assist it in evaluating its alternatives with respect to the Issuer and to provide certain investment banking services. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. Exhibit A -- Agreement as to joint filing pursuant to Regulation Section 240.13d-1(f)(1)(iii). Exhibit B -- Form of Proposal and Shares Subscription among Holders and MK Acquisition, Inc. SIGNATURES After reasonable inquiry, and to the best of each of the undersigned's knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: February 6, 2002 /s/ Marc H. Kozberg - ------------------------------------------ Marc H. Kozberg /s/ Demetre Nicoloff - ------------------------------------------ Dr. Demetre Nicoloff /s/ Edward S. Adams - ------------------------------------------ Edward S. Adams /s/ Robert H. Paymar - ------------------------------------------ Robert H. Paymar /s/ Timothy R. Duoos - ------------------------------------------ Timothy R. Duoos /s/ Ardelle Nicoloff - ------------------------------------------ Ardelle Nicoloff /s/ Richard Fizgerald - ------------------------------------------ Richard Fitzgerald /s/ Charles Barry - ------------------------------------------ Charles Barry /s/ Melanie Barry - ------------------------------------------ Melanie Barry /s/ Marvin W. Goldstein - ------------------------------------------ Marvin W. Goldstein /s/ Robert C. Klas, Sr. - ------------------------------------------ Robert C. Klas, Sr. THE TEMPLE COMPANY, L.L.P. By: /s/ Charles Barry --------------------------------------- Charles Barry, a partner CHARMEL LIMITED PARTNERSHIP By: Charmel Enterprises, Inc. By: /s/ Charles Barry --------------------------------- Charles Barry, President CHARMEL ENTERPRISES, INC. By: /s/ Charles Barry --------------------------------------- Charles Barry, President NICOLOFF PROPERTIES PARTNERSHIP By: /s/ Ardelle Nicoloff --------------------------------------- Ardelle Nicoloff, general partner VIRTUALFUND.COM, INC. By: /s/ Timothy R. Duoos --------------------------------------- Timothy R. Duoos, Chairman EX-99.A 3 a2069652zex-99_a.txt EXHIBIT 99.A EXHIBIT A AGREEMENT AS TO JOINT FILING Pursuant to Regulation Section 240.13d-1(f)(1)(iii), the undersigned acknowledge and agree that the attached Schedule 13D Amendment relating to Cone Mills Corporation is being filed on behalf of each of the undersigned. /s/ Marc H. Kozberg - ------------------------------------------ Marc H. Kozberg /s/ Demetre Nicoloff - ------------------------------------------ Dr. Demetre Nicoloff /s/ Edward S. Adams - ------------------------------------------ Edward S. Adams /s/ Robert H. Paymar - ------------------------------------------ Robert H. Paymar /s/ Timothy R. Duoos - ------------------------------------------ Timothy R. Duoos /s/ Ardelle Nicoloff - ------------------------------------------ Ardelle Nicoloff /s/ Richard Fizgerald - ------------------------------------------ Richard Fitzgerald /s/ Charles Barry - ------------------------------------------ Charles Barry /s/ Melanie Barry - ------------------------------------------ Melanie Barry /s/ Marvin W. Goldstein - ------------------------------------------ Marvin W. Goldstein /s/ Robert C. Klas, Sr. - ------------------------------------------ Robert C. Klas, Sr. THE TEMPLE COMPANY, L.L.P. By: /s/ Charles Barry --------------------------------------- Charles Barry, a partner CHARMEL LIMITED PARTNERSHIP By: Charmel Enterprises, Inc. By: /s/ Charles Barry --------------------------------- Charles Barry, President CHARMEL ENTERPRISES, INC. By: /s/ Charles Barry --------------------------------------- Charles Barry, President NICOLOFF PROPERTIES PARTNERSHIP By: /s/ Ardelle Nicoloff --------------------------------------- Ardelle Nicoloff, general partner VIRTUALFUND.COM, INC. By: /s/ Timothy R. Duoos --------------------------------------- Timothy R. Duoos, Chairman EX-99.B 4 a2069652zex-99_b.txt EXHIBIT 99.B EXHIBIT B {FORM OF} PROPOSAL AND SHARE SUBSCRIPTION JANUARY ___, 2002 Each of the undersigned hereby subscribes for and proposes to purchase the number of shares of common stock (the "Shares") of MK Acquisition, Inc., a Minnesota corporation (the "Corporation") set forth next to his, her or its name in SCHEDULE A. In consideration of the acceptance of this Proposal and Share Subscription, and the issuance of said Shares, each of the undersigned agrees (i) to pay to the Corporation, and tenders herewith, the Share Purchase Price in cash indicated in SCHEDULE A and (ii) upon the call of the Board of Directors of the Corporation ("Capital Call"), to make a loan to the Corporation in such amount as the Board of Directors may direct, up the "Maximum Loan Amount" set forth in SCHEDULE A. Each of the undersigned agrees, and by accepting this Proposal and Share Subscription the Corporation agrees, that any Capital Call made by the Board of Directors of the Corporation (a) shall be made pro rata among all shareholders of the Corporation, based on the number of shares of common stock owned by each of them; (b) shall be made in the form of a loan by each shareholder to the Corporation bearing interest at the Prime Rate as published by U.S. Bank National Association (or any successor) as of the date prior to the date of the Capital Call; (c) each loan shall be due and payable by the Corporation within thirty (30) days of its or its affiliates acquisition of control of Cone Mills Corporation or the abandonment of efforts to attain such control; (d) may be made only in the event and to the extent that the Board of Directors determines, in good faith, that additional capital is necessary to pay the expenses of the Corporation incurred or to be incurred in connection with the Corporation's efforts to acquire control of Cone Mills Corporation; and (e) may be made at any time and from time to time. Each of the undersigned acknowledges, agrees, represents and warrants that he, she or it (i) is an "accredited investor" as that term is defined in Regulation D promulgated by the Securities and Exchange Commission; (ii) has full power and authority to enter into and carry out the terms of this Proposal and Share Subscription; (iii) is sophisticated in financial matters and capable of evaluating the risks associated with an investment in the Corporation; (iv) is of significant financial means and capable of bearing complete loss of his, her or its investment in the Corporation (including any investment made under a Capital Call); (v) that the Shares will be subject to significant limits on transferability under applicable securities laws and will bear a legend to that effect when issued; (vi) that the Shares are being purchased for his, her or its own account and not with a view toward resale or distribution; and (vii) that his, her or its investment is being made in connection with the formation and original capitalization of the Corporation, which has been formed for the sole purpose of making a proposal to acquire control of Cone Mills Corporation and if such efforts are not successful or are later abandoned, the undersigned will likely lose all of his, her or its investment in the Corporation. ACCEPTED AS TO EACH SUBSCRIBER ON THE FOLLOWING SIGNATURE PAGES: MK Acquisition, Inc. - -------------------------------------------- By Marc H. Kozberg, Chief Executive Officer [SIGNATURES] - ------------------------------------------ Marc H. Kozberg - ------------------------------------------ Dr. Demetre Nicoloff - ------------------------------------------ Edward S. Adams - ------------------------------------------ Robert H. Paymar - ------------------------------------------ Timothy R. Duoos - ------------------------------------------ Charles Barry THE TEMPLE COMPANY, L.L.P. By: --------------------------------------- Charles Barry, a partner CHARMEL LIMITED PARTNERSHIP By: Charmel Enterprises, Inc. By: -------------------------------- Charles Barry, President - ------------------------------------------ Marvin W. Goldstein - ------------------------------------------ Robert C. Klas, Sr. NICOLOFF PROPERTIES PARTNERSHIP By: --------------------------------------- Ardelle Nicoloff, general partner VIRTUALFUND.COM, INC. By: --------------------------------------- Timothy R. Duoos, Chairman SCHEDULE A
NUMBER OF SHARE MAXIMUM SUBSCRIBER SHARES PURCHASE PRICE LOAN AMOUNT PERCENT - ---------- ------ -------------- ----------- ------- Marc H. Kozberg 135,000 $ 1,350 $ 4,500 4.5% Dr. Demetre Nicoloff 375,000 3,750 12,500 12.5 Edward S. Adams 42,000 420 1,400 1.4 Robert H. Paymar 153,000 1,530 5,100 5.1 Timothy R. Duoos 24,000 240 800 0.8 The Temple Company, L.L.P. 126,000 1,260 4,200 4.2 Charmel Limited Partnership 699,000 6,990 23,300 23.3 Marvin W. Goldstein 306,000 3,060 10,200 10.2 Robert C. Klas, Sr. 417,000 4,170 13,900 13.9 Nicoloff Properties Partnership 108,000 1,080 3,600 3.6 VirtualFund.com, Inc. 528,000 5,280 17,600 17.6 Charles Barry 87,000 870 2,900 2.9 TOTAL 3,000,000 $ 30,000 $ 100,000 100.0%
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