In 1995 AED conducted a survey of its members in an effort to determine the impact that the estate tax has on the equipment distribution industry. The results were staggering. We found that our industry had spent more than $6 million on lawyers and accountants to set up estate plans to prevent the tax from destroying family businesses upon the death of the current generation of owners. We also found that distributors were spending $5 million a year to buy life insurance to provide cash to pay the tax when it comes due. The survey sent shock waves across Capitol Hill because it illustrated so concretely the misdirection and inefficient use of capital caused by the tax. Many credit the AED estate tax report with helping to build momentum for repeal on Capitol Hill in recent years. In anticipation of the final push to repeal the tax later this year, AED is updating the estate tax study. But, for it to be meaningful, WE NEED YOUR HELP!!! Please fill out the following brief survey about the impact that the estate tax has had on your business and submit it to AED no later than February 25th. Your responses will be held in the strictest of confidence and will only be used in compiling our statistical report to Congress. No identifying information will be included in the final report. Thanks very much for your participation.

1. What type of equipment does your company distribute?   Heavy   Light   General     2. How is your company organized?   Regular Corporation   Subchapter S Corporation   Other     3. What is your total number of employees? 10 or less 11-20 21-30 31-50 51-100 100 or more     4. Is the company a closely-held or privately-owned family business?   Yes   No     5. Are family members directly involved in company management, decision making, or ownership?   Yes   No     6. For how many generations has the family business existed? 1 2 3 4     7. Does your company have owners who are not family members?   No   Yes, employees   Yes, other investors     8. How many family members (by blood or marriage) are employed full or part time in the business? 0 1 2 3 4 5 or more     9. Would you consider selling stock to non-family investors to raise capital? No Yes     10. What are the annual revenues of the family business? Less than $2 million $2 million - $10 million $10 million - $25 million More than $25 million     11. What are the total assets of the family business? Less than $2 million $2 million - $10 million $10 million - $25 million More than $25 million     12. How many new jobs did your company create in the last five years? None 1-2 3-5 6-10 11-20 21-40 More than 40     13. Are you aware that the assets of your business are potentially subject to estate tax? Yes No     14. Have you calculated the estate tax that could be levied on the value of the business? Yes No     15. Rate the potential impact of the federal estate taxes on your business (1 means "not a concern," 5 means "major concern") 1 2 3 4 5     16. What steps has your business taken to minimize the impact of federal estate taxes? Check All That Apply Purchased life insurance Made lifetime gifts of stock Entered a buy/sell agreement Restructured the business Made charitable bequests of interest Have taken no steps     17. Would you have taken those steps if there had not been an estate tax? Yes, would have taken those steps No, would not have taken those steps     18. What costs has your company incurred in the course of planning to comply with the estate tax?     Steps Taken Cost Incurred Legal Fees (to date) $     Accounting fees (to date) $     Fees for other estate planning advisors (to date) $     Life insurance premiums (amount spent annually) $     Cumulative insurance premiums (to date) $     Gift taxes paid (to date) $     Costs related to ownership restructuring (to date) $     Charitable bequests (to date) $     Value of liquid assets held in reserve $     19. What will the likely effect of the estate tax be on the long-term growth of your business after the death of the current generation of owners? No effect It will make growth slightly more difficult It will make growth significantly more difficult It will make growth impossible     20. What will the likely effect of the estate tax be on the long-term survival of your business after the death of the current generation of owners? No effect It will make survival slightly more difficult It will make survival significantly more difficult It will make survival impossible     21. Assume that the current generation of owners of your business were to die today and that, in many cases, the estate tax must be paid in cash and as soon as nine months after death, would your business . . .   have sufficient assets to pay the tax   have to borrow against the business to pay the tax   have to sell all or part of the business to pay the tax   have to both borrow and sell part of the business     22. Has your business already experienced the death of a family owner that has adversely affected the business due to the imposition of estate taxes? Yes No     23. How many jobs at your company would be lost if it were necessary to sell all or part of the business or borrow money to pay estate taxes? No jobs lost 1-10 jobs lost 11-50 jobs lost More than 50 jobs lost     24. If you have recently sold your company to a larger, publicly-held corporation, how important was the estate tax as a factor in your decision to sell? ("1" means "not important," "5" means "very important") 1 2 3 4 5   n/a     25. If you are considering selling your ownership interest in your company to a larger, publicly-held corporation, how important is the estate tax as a factor in your decision to sell? ("1" means "not important," "5" means "very important") 1 2 3 4 5   n/a         26. The equipment industry has been experiencing a great deal of consolidation in recent years. In your observations, how much of a factor have concerns about the estate tax been in causing this consolidation? ("1" means "not a factor," "5" means "a very important factor") 1 2 3 4 5   n/a     Please note that your responses will be held in the strictest of confidence and will only be used in compiling our statistical report to Congress. No identifying information will be included in the final report. Providing your company's name will, however, allow us to avoid duplicate survey responses, ensure the credibility of the responses we receive, and will make the final report that much more valuable. Although it is not absolutely necessary, providing your company's name would therefore be very helpful. Company: