Estate of Emily F. Klauss - Page 3

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               2.   Ownership                                                           
               Green Light is a closely held corporation.  Of the 460                   
          outstanding shares of stock in Green Light, 184 shares were                   
          included in decedent’s gross estate under section 2044.                       
          Decedent’s children owned the remaining shares of Green Light                 
          stock when she died.                                                          
               Green Light has never paid dividends.                                    
               3.   Products and Operations                                             
               Green Light formulates and markets (but does not                         
          manufacture) insecticides, weed killers, fungicides, plant foods,             
          and other products for home and garden use.  Green Light sells                
          its products to distributors, who sell them to retailers, such as             
          Walmart and grocery and hardware stores.  Green Light’s primary               
          market in 1993 was the home and garden market.  It did not sell               
          to farms, ranches, or golf courses.  Green Light’s sales volumes              
          vary greatly according to weather conditions and the planting                 
          season.  Its products are manufactured primarily in the fourth                
          quarter of the calendar year, and it ships most of its products               
          in December and January.  Green Light bills its customers 90 days             
          after shipment and receives most of its revenue in May and June.              
               In 1993, Green Light sold its products primarily in Texas,               
          Oklahoma, Louisiana, New Mexico, Colorado, and Arizona.  Its top              
          five customers accounted for about 71 percent of its sales in its             

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Last modified: May 25, 2011