Estate of Robert G. Kluener, Deceased, Donald E. Hathaway, Co-executor and Charlotte J. Kluener - Page 6

            1989, meeting of APECO's board, the concept of a "turbo airless                               
            sprayer" was discussed, but such a product was not mentioned in                               
            the minutes of subsequent board meetings on November 20, 1989,                                
            and January 16, 1990.  Eventually, the sprayer developed from the                             
            concept came to be known as the "Planatronic".  During mid-1989,                              
            APECO's personnel had not allocated a specific amount of money to                             
            the development of the Planatronic.  APECO experienced continuing                             
            difficulties in developing the Planatronic into a reliable                                    
            product that were not solved as late as July 1991.                                            
                  Mr. Kluener owned 41 thoroughbred horses, and he had at one                             
            time owned as many as 120 to 125 such horses.  His horse-related                              
            activities were conducted through a sole proprietorship known as                              
            Robert G. Kluener Enterprises, which maintained an office in                                  
            Cincinnati.  Mr. Kluener's assistant worked in that office and                                
            was responsible for a variety of administrative tasks relating to                             
            his personal and business activities, including the paperwork and                             
            check-writing connected with the horse-related activities.                                    
                  As a result of the collapse of the real estate ventures, his                            
            obligations to Fifth Third, and the need to fund APECO, Mr.                                   
            Kluener could no longer afford the losses generated by the horse-                             
            related activities, which, for the first 7 months of 1989,                                    
            amounted to approximately $400,000.  Moreover, due to declining                               
            health, Mr. Kluener did not enjoy those activities as much as he                              
            formerly had enjoyed them, and he began to lose interest in them.                             
            Accordingly, Mr. Kluener decided to sell his horses.  His tax                                 

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