Neonatology Associates, P.A., et al - Page 53




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            Lakewood Plan used both withdrawals to pay C-group term policy                             
            premiums for Drs. Hirshkowitz and Desai.  The Lakewood Plan paid                           
            $30,153.10 of charges on its deposits and $4,138.44 of surrender                           
            charges on its withdrawals.  The $26,784.67 difference between                             
            the (1) total deposits into the account ($177,250.54) and (2) sum                          
            of the charges ($34,291.54) plus total withdrawals ($169,743.67),                          
            represents interest.                                                                       
                  3.  Commonwealth Sygnet 24 Group Annuity Effective in 1993                           
                  Effective December 30, 1993, Commonwealth issued to the                              
            Lakewood Plan a second Sygnet 24 group annuity (#D11794/D90214).                           
            The Lakewood Plan deposited $75,551.50 into the annuity on the                             
            day it was effective and closed the annuity on November 25, 1996,                          
            withdrawing $65,078.20.  The Lakewood Plan paid a $15,865.68                               
            charge on its deposit and a $3,436.85 surrender charge on its                              
            withdrawal.  The $7,042.45 difference between the (1) deposit                              
            ($75,551.50) and (2) sum of the charge ($3,436.85) plus                                    
            withdrawal ($65,078.20) represents interest.                                               
                  Beginning in 1992, Lakewood purchased outside of the SC VEBA                         
            three Peoples Security C-group term policies.  Lakewood owned                              
            these policies and deducted the underlying premiums as VEBA                                
            contributions.  The attributes of these policies are as follows.                           
                  1.  Dr. Desai’s Peoples Security C-Group Term Policy                                 
                  Effective August 15, 1992, Peoples Security issued a                                 
            $1,005,000 C-group term policy (certificate No. 7003612) on the                            






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