7. No Plant and Equipment were purchased or sold in 2009.

WEEBER GRILL COMPANY n September of 2010 Cheryl Lester, marketing vice president of Weeber Grills was mulling over the discussion she had the previous day with Tom Spencer, a buyer from House Depot Stores, Inc. House Depot operated a chain of home improvement and construction products and were the best-sellers of Weeber Grills. House Depot's sale had grown to the extent that it was beginning to add a "house-brand" (also called a Spencer, House Depot's buyer for outdoor living, had approached Ms. Lester about the possibility of Weeber producing the grills for House Depot. The grills would bear the name "Genesis," which House Depot planned to use for all its house-brand outdoor IiMy. Fifty years ago, after he became frustrated with the uneven and uncontrollable flame of open brazier grilling at his Mount Prospect, Ilinois home, determined backyard griller George Kempster Sr. set out to build a better grill that would protect his precious steak from the wind and possible downpours- while sealing in a tasty smoked flavor Kempster ingeniously cut a metal buoy in half and fashioned a dome shaped grill with a rounded lid- and the classic original Weeber kettle was born. His invention quickly gained a loyal audience and ultimately became a prominent symbol of Americana. In the 1960s and 1970s, Weeber's reputation grew beyond the Midwest, as it became a nationally known brand with distribution in retail stores all over the country- introducing covered grilling to the rest of the country. Sales were currently at an annual rate of about $10 million. (The company's 2008 and 2009 financial statements appear in Exhibit 1.) Most of Weeber's sales were through independently owned outdoor and patio furniture stores. Weeber had never before distributed its grills through department store chains of any type. Ms. Lester thought that Weeber had the image of being above average in quality and price but not a "top of the line" grill House Depot's proposal to Weeber had features that made it quite different from Weeber's normal way of doing business. First, it was very important to House Depot to have ready access to a large inventory of grills, because House Depot had great difficulty in predicting grill sales, both by store and by month. House Depot wanted to carry these inventories in its regional warehouses, but did not want the title of the grill to pass from Weeber to House Depot until the grill was shipped from one of its regional warehouses to a specific House Depot store. At that point, House Depot would regard the grills as having been purchased from Weeber, and would pay for it in 30 days However, House Depot would agree to take title to any grill that had been in one of its warehouses for four months, again paying for it within 30 days. Mr. Spencer estimated that on average, a grill would remain in a House Depot regional warehouse for two months. WEEBER GRILL COMPANY n September of 2010 Cheryl Lester, marketing vice president of Weeber Grills was mulling over the discussion she had the previous day with Tom Spencer, a buyer from House Depot Stores, Inc. House Depot operated a chain of home improvement and construction products and were the best-sellers of Weeber Grills. House Depot's sale had grown to the extent that it was beginning to add a "house-brand" (also called a Spencer, House Depot's buyer for outdoor living, had approached Ms. Lester about the possibility of Weeber producing the grills for House Depot. The grills would bear the name "Genesis," which House Depot planned to use for all its house-brand outdoor IiMy. Fifty years ago, after he became frustrated with the uneven and uncontrollable flame of open brazier grilling at his Mount Prospect, Ilinois home, determined backyard griller George Kempster Sr. set out to build a better grill that would protect his precious steak from the wind and possible downpours- while sealing in a tasty smoked flavor Kempster ingeniously cut a metal buoy in half and fashioned a dome shaped grill with a rounded lid- and the classic original Weeber kettle was born. His invention quickly gained a loyal audience and ultimately became a prominent symbol of Americana. In the 1960s and 1970s, Weeber's reputation grew beyond the Midwest, as it became a nationally known brand with distribution in retail stores all over the country- introducing covered grilling to the rest of the country. Sales were currently at an annual rate of about $10 million. (The company's 2008 and 2009 financial statements appear in Exhibit 1.) Most of Weeber's sales were through independently owned outdoor and patio furniture stores. Weeber had never before distributed its grills through department store chains of any type. Ms. Lester thought that Weeber had the image of being above average in quality and price but not a "top of the line" grill House Depot's proposal to Weeber had features that made it quite different from Weeber's normal way of doing business. First, it was very important to House Depot to have ready access to a large inventory of grills, because House Depot had great difficulty in predicting grill sales, both by store and by month. House Depot wanted to carry these inventories in its regional warehouses, but did not want the title of the grill to pass from Weeber to House Depot until the grill was shipped from one of its regional warehouses to a specific House Depot store. At that point, House Depot would regard the grills as having been purchased from Weeber, and would pay for it in 30 days However, House Depot would agree to take title to any grill that had been in one of its warehouses for four months, again paying for it within 30 days. Mr. Spencer estimated that on average, a grill would remain in a House Depot regional warehouse for two months