Estate of Emily F. Klauss - Page 4

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          1992 fiscal year.1  More than 36 percent of Green Light’s sales               
          in fiscal year 1992 were to Central Garden.                                   
               4.   Green Light’s Environmental Claims, Products Liability              
                    Insurance, and Risks of Litigation                                  
               The Texas Water Commission (later the Texas Natural                      
          Resources Conservation Commission (TNRCC)) told Green Light in                
          August 1991 that soil at its San Antonio facility was                         
          contaminated with chlordane and xylene.  The TNRCC ordered Green              
          Light to submit a corrective action plan within 30 days.  Green               
          Light denied that its property was contaminated, and had not                  
          submitted a plan as of the time of trial.                                     
               Green Light had $500,000 of products liability insurance in              
          1993, with a $50,000 deductible.  It would have cost Green Light              
          about $250,000 more to increase its 1992 products liability                   
          insurance coverage to $2 million, with a $1,000 deductible.  As               
          of February 1, 1993, Green Light was a defendant in at least six              
          products liability lawsuits resulting from the alleged                        
          misapplication of some of its products.  Green Light faced                    
          potential liability of more than $100 million in these lawsuits.              
               5.   Sale of Green Light to Employee Stock Ownership Trust               
               On November 30, 1994, all of the stock of Green Light was                
          sold to an employee stock ownership trust created by the                      
          employees of Green Light.                                                     
          C.   Decedent’s Estate Tax Return                                             

               1  Green Light used a fiscal year ending June 30.                        

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