THE LYNDE AND HARRY BRADLEY FOUNDATION, INC.

Proforma Cash Flow Analysis

Page 3 includes a proforma Statement and Uses and Sources of Funds for the three month period October 1, 1998 through December 31, 1998 and the six month period January 1, 1999 through June 30, 1999. Please note that the alternative investment capital calls are estimates only and are difficult to predict.

In the near term, funding needs will be provided by the available cash funds. Toward the end of 1998 and beginning of 1999, the source of funds will be based on the following rebalancing guidelines approved by the Investment Committee on November 17, 1997:

Portfolio	Actual

Classification	Allocation	Action

Total equity	Below 70%	Consider purchase of

portfolio	additional equities with fixed

income funds

70%-76%	Fund cash needs from fixed

income portfolio

+76%-80%	Fund cash needs from equity

portfolio until allocation is

reduced to 76%

Above 80%	Sell equity securities to

rebalance portfolio

Individual Equity

Classifications:

(Large Cap	+2% or	No action

Small Cap	-2% target

Foreign)	allocation range

Above +2% or	Rebalance within the equity

-2% target	portfolio using equity funds

allocation

range

The actual versus target allocations will be calculated monthly in connection with preparation of the monthly Flashreport. Rebalancing actions based on these calculations will be implemented on or about the 15th day of the following month.

Withdrawal of funds from equity managers will be based on the following guidelines:

1.	Overall performance of manager.

2.	Maintaining equity allocations for large cap, small cap and foreign stocks within a +2% or -2% range of the target allocation. Achieving style neutrality within an asset class would also be a consideration.

3.	Maintaining a base level of index funds of at least 15% of the total equity portfolio.

Unusual market fluctuations, trends or Foundation needs could supersede the proposed rebalancing guidelines. Deviations from the proposed rebalancing guidelines would be reported to the Investment Committee.

Tab 4 includes a discussion of alternative approaches to funding the $20,000,000 stadium financing commitment. One alternative is the use of appreciated stock. Whether cash or stock is used to fund the $20,000,000 commitment, the magnitude of the commitment will require careful monitoring to minimize the disruption, if any, on the overall asset allocation strategy of the Foundation. The recent volatility of the market makes it difficult to predict the preferred funding source for the $20,000,000 commitment.