Estate of Howard Gilman, Deceased, Bernard D. Bergreen and Natalie Moody, Executors - Page 10

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          October 3, 2003.5  The executors also elected under New York Tax            
          Law section 997 (McKinney 1999) to pay New York estate tax in 10            
          annual installments.                                                        
          E.   HG and Foundation Finances                                             
               1.   HG’s Cash Requirements in 2000-02                                 
               Beginning in 2000, there was a reduction in the net positive           
          cashflow of Gilman Building Products.  Gilman Building Products’            
          net positive cashflow decreased from an average of more than $42            
          million per year in 1994-99 to $3.5 million in 2000, $19 million            
          in 2001, and $9.2 million in 2002.                                          
               By the end of 2001, HG needed $30 to $40 million in cash and           
          cash equivalents as working capital to pay operating expenses of            
          its businesses.  At that time, HG had cash and cash equivalents             
          of $36.3 million.  On October 18, 2002, HG had cash and cash                
          equivalents of $16.7 million.                                               
               HG received more than $287 million from the sale of Gilman             
          assets and businesses from 1999 to 2002.  HG used most of those             
          receipts to repay the $250 million line of credit from                      
          NationsBank.  HG used the remainder as working capital and to pay           
          other expenses.                                                             





               5  The estate paid four installments of interest only,                 
          beginning Oct. 3, 1999.                                                     





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