Michael W. and Caroline P. Huber et al. - Page 7

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          The Brown Estate Transactions                                               
               Ellen Mertens Brown, a third-generation descendant of J.M.             
          Huber, died in 1992.  At her death, Mrs. Brown owned over 300,000           
          Huber shares.  Mrs. Brown’s son, Bruce Seely, and her stepson,              
          George Brown, were named as coexecutors of the Brown estate.  The           
          coexecutors intended to sell some of Mrs. Brown’s shares of Huber           
          in order to pay the estate tax.  Since the value of the shares              
          had not been finally determined for Federal estate tax purposes,            
          the coexecutors obtained from the Internal Revenue Service (IRS)            
          a series of five 1-year extensions to pay the estate tax.  In               
          mid-1997, the coexecutors settled the estate tax issues with the            
          IRS and agreed upon the payment date of March 16, 1998, for the             
          estate tax liability.                                                       
               In the fall of 1997, Mr. Seely, who was also a Huber family            
          member, sought to raise the necessary funds to satisfy the estate           
          tax liability by selling the Brown estate shares held in Huber.             
          Mr. Seely understood that he owed fiduciary duties to the Brown             
          estate’s beneficiaries (of whom he was one) to get the best price           
          for the estate’s Huber shares.  Mr. Seely was familiar with E&Y’s           
          valuation and received an overview of its report annually.  In              
          addition, Mr. Seely attended Huber’s annual shareholder meetings,           
          served as a nonvoting director, and received Huber’s quarterly              
          reports, operating plan, and budget.  In October 1997, Mr. Seely            
          and Mr. Brown, as coexecutors of Mrs. Brown’s estate, sold 52,796           






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