Winn-Dixie Stores, Inc. and Subsidiaries - Page 30




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          agreement, petitioner was to pay $300,00031 in each of the first            
          2 years and $200,000 annually in all subsequent policy years, and           
          Coventry was to perform the following services in connection with           
          the COLI policies:                                                          
               (a) On the basis of census information supplied by                     
                    petitioner                                                        
                    (1) Identify which of the petitioner's employees                  
                         may become insured;                                          
                    (2) Calculate the face amounts of the policies                    
                         and the first year premiums for the covered                  
                         employees;                                                   
                    (3) Determine and process new insureds and process                
                         any change in the status of any insured;                     
                    (4) Make the necessary calculations with respect                  
                         to premiums, loans, withdrawals, loan interest,              
                         death claims and/or any other periodic payments;             
               (b) Provide consolidated invoice and itemization to                    
                    petitioner and AIG;                                               
               (c) Receive and inspect the insurance policies from AIG                
                    and forward them to petitioner;                                   
               (d) Search government databases and other sources for                  
                    covered deceased employees and obtain death                       
                    certificates for deceased insureds;                               
               (e) Provide petitioner with ongoing advice with respect                
                    to financial options and strategies related to 1993               
                    COLI polices; and                                                 
               (f) Provide petitioner with various reports including                  
                    insurance value reports, year-end summaries,                      
                    accounting reports and custom-designed decision-                  
                    support reports.                                                  


               31Petitioner deducted $100,000 of the $300,000 on its income           
          tax return for the fiscal period ending June 30, 1993.                      





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