SECURITY LENDING PROGRAM

The Bradley Foundation has a Security Lending Agreement with Northern Trust Company with the following limitations on the security lending activity:

1.	Maximum amount of domestic securities on loan should not exceed $200 million at any one time.

2.	Maximum amount of international securities on loan should not exceed $75 million at any one time.

Since inception of the security lending program with Northern Trust, the Foundation has earned $295,000 in security lending revenue or approximately a $21,000 average per month. This compares to an average monthly security lending revenue of $8,600 with Firstar.

Northern Trust has a loan allocation system that automatically designates which securities are used from their client portfolios for security lending purposes. The system is designed to fairly allocate the amount of the loaned securities and related security lending revenue among their clients.

Thus far in 2000 the average amount of securities on loan was $80,000,000 or approximately 18.6% of the total securities available for loan. This percent is actually slightly higher than the average percentage of all institutions participating in the Northern Trust security lending pool. The Foundation's average amount of securities on loan is well below the established limits noted above.

Based on our review we believe the security lending program is operating effectively and no changes in the loan limits or agreement terms are necessary at this time.