Estate of Howard Gilman, Deceased, Bernard D. Bergreen and Natalie Moody, Executors - Page 13

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          mortgage on White Oak and guaranteed by HG.  HG pledged                     
          collateral for the Farm Credit loan.  The Farm Credit loan is               
          payable over 10 years with a fixed schedule for payment of                  
          principal and interest.  The total amount of interest to be paid            
          on the Farm Credit loan is $15,734,293.  Closing costs for the              
          Farm Credit loan were $200,000.                                             
               On November 1, 2002, the estate used proceeds from the Farm            
          Credit loan to pay $9,610,302.91 in Federal estate tax and                  
          $2,805,802.13 in New York estate tax.  The estate retained the              
          rest of the proceeds from the Farm Credit loan to pay                       
          compensation to Bergreen and Davis and certain administration               
          expenses.                                                                   
               As of February 1, 2004 (the day after the due date for                 
          repayment of the $143 million in notes), the estate was scheduled           
          to have paid interest on the Farm Credit loan totaling $2,665,850           
          and principal in the amount of $742,448.47, leaving a principal             
          balance of $37,257,551.53.                                                  
               4.   Income Tax Returns and Administration Activities in               
                    2003                                                              
               From March 1999 to January 2003, the estate received                   
          $23,617,031 cash from HG as interest payments on the $143 million           
          in notes.7  On July 1, 2002, HG gave the estate a $22.9 million             
          note for unpaid, accrued interest due through January 31, 2002.             

               7  The estate received $4,705,631 from HG in 2003.                     





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