Fred Henry - Page 5




                                        - 5 -                                          

               For a certain period prior to October 1991, Mr. Henry                   
          exhibited certain of his orchid plants at flower shows and                   
          special events, made presentations to orchid societies and others            
          interested in growing orchids, and permitted orchid societies to             
          visit his nursery.  The American Orchid Society awarded prizes to            
          Fred Henry's Paradise of Orchids for the quality of certain of               
          its orchid plants.                                                           
               Orchid plants take five to nine years to reach maturity, and            
          certain types of orchid plants may have a very long life ex-                 
          pectancy.  Orchid plants are salable only when they are in                   
          flower.  The age, size, quality, and flowering capacity of the               
          orchid plant and the reputation of the orchid grower are factors             
          in determining the value of such a plant.  A large orchid plant              
          of high quality with excellent flowering capacity increases in               
          value as it becomes older.                                                   
               During the period 1987 through around September 1991, Mr.               
          Henry purchased and used a chemical fungicide manufactured by du             
          Pont, which was marketed under the name Benlate DF (Benlate).                
          Mr. Henry applied Benlate to all orchid plants in his possession             
          in order to prevent the growth of, or to eradicate, fungus which             
          was harmful to those plants.  In addition to the orchid plants               
          owned by Fred Henry's Paradise of Orchids, Mr. Henry had in his              
          possession orchid plants owned by third parties.  A large portion            
          of the orchid plants in Mr. Henry's possession were not for sale             





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Last modified: May 25, 2011