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Annual Report

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Notes to Consolidated Financial Statements

NOTE 5. RELATED PARTY TRANSACTIONS

Henkel KGaA ("Henkel") beneficially owned 72.7 million shares, or approximately 28.2 percent, of the company's outstanding common stock on December 31, 2004. Under a stockholders' agreement between the company and Henkel, Henkel is permitted ownership in the company of up to 35 percent of the company's outstanding common stock. Henkel is also entitled to proportionate representation on the company's board of directors. In 2004, 2003 and 2002, the company and its affiliates sold products and services in the aggregate amounts of $3,222,000, $3,426,000 and $6,986,000, respectively, to Henkel or its affiliates, and purchased products and services in the amounts of $70,946,000, $71,265,000 and $74,192,000, respectively, from Henkel or its affiliates. The transactions with Henkel and its affiliates are negotiated at arm's length.








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