Estate of Robert G. Kluener, Deceased, Donald E. Hathaway, Co-executor and Charlotte J. Kluener - Page 14

                  All or a portion of the funds for the loans made on or about                            
            March 27, July 29, and September 23, 1991, were funded by                                     
            distributions from Mr. Kluener's agency account.                                              
                  During mid-1991, Mr. Kluener's and APECO's notes to Fifth                               
            Third were renegotiated.  As part of that renegotiation, the                                  
            pledges of assets made during 1990 were canceled, and a new                                   
            arrangement was substituted.  The Klueners signed a new                                       
            promissory note to Fifth Third that was dated June 25, 1991, in                               
            the principal amount of $15,985,000 and that bore interest at the                             
            prime rate.  The note provided that its principal amount would be                             
            due in full 60 days after the death of the last of them to die.                               
            By letter dated June 25, 1991, and addressed to Fifth Third, the                              
            Klueners agreed, inter alia, to maintain substantially all of                                 
            their investment assets in the agency accounts in each of their                               
            names, to not substantially increase their expenditures to                                    
            maintain their standard of living, and to invest no more than an                              
            additional $3 million in APECO.  Prior to this time, Ms.                                      
            Kluener's assets were not subject to the claims of Fifth Third                                
            arising from its loans to Mr. Kluener and APECO.                                              
                  Between Mr. Kluener's death on October 14, 1991, and May                                
            1992, his estate made additional advances to APECO totaling                                   
            $1,292,000.  APECO eventually was sold for $2,500,000.                                        
                  The issue to be decided in the instant case is whether APECO                            
            was the actual seller of the horses, as petitioners contend, or                               
            Mr. Kluener was the seller, as respondent contends.  If we decide                             

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