Estate of Emily F. Klauss - Page 14

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               4.   Risk of Litigation and Environmental Remediation                    
               Johnson and Fuller substantially agreed about the potential              
          effects of products liability litigation and environmental claims             
          on the value of Green Light stock.  Johnson reduced his estimate              
          of the value of Green Light by $921,000 on the basis of the                   
          $252,000 cost to Green Light of increasing its products liability             
          insurance and John Klauss’ estimate that it would have cost Green             
          Light about $250,000 in 1993 to pay fines and remediation costs,              
          such as excavation, transportation, and capping costs, and lab                
          analysis, disposal, and environmental engineer’s and attorney’s               
          fees to resolve the TNRCC enforcement action.  In contrast,                   
          Fuller discounted his estimate by 10 percent, which had the                   
          effect of reducing the stock value by $1,130,000, in part because             
          counsel for Green Light stated that its maximum liability for the             
          litigation claims would be 10 percent.  We agree with Johnson’s               
          approach because we believe he more accurately accounted for the              
          effects on the value of Green Light of the litigation and                     
          environmental claims.                                                         
               5.   Conclusion                                                          
               We conclude that Johnson’s analysis was more persuasive than             
          Fuller’s, except for his use of a 15-percent growth rate for                  
          American Vanguard.                                                            

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