David C. Roark and Estate of Irene Roark, Deceased, David C. Roark, Executor - Page 6

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          guaranteed right to a fixed permanent and primary portion of the            
          death benefit, for instance.  The proposed rate of return on the            
          investment also had to be “acceptable”.  The Roarks’ proposal               
          apparently met NCF’s criteria, and so NCF and Mrs. Roark signed a           
          Charitable Legacy Plan Agreement shortly thereafter.                        
               The Plan Agreement called for Mr. Roark to donate large sums           
          of money to the Roark Foundation at NCF.  NCF could then choose             
          from among three options:                                                   
               1.  If NCF paid no premiums.  The Plan Agreement carefully             
          gave NCF this option, but made clear that NCF’s death benefit               
          would then “be null and void.”                                              
               2.  If NCF chose to pay the premiums.  The Plan Agreement              
          contemplated that NCF would pay the premiums on an accelerated              
          timetable, with all of them paid within five years.3  If NCF                
          chose to make all the payments, it would be entitled to $489,000            
          of the $2.2 million death benefit, and the “unearned premium                





               3 The Plan Agreement called for Roark to donate the                    
          following sums to NCF:                                                      
                    1998:     $240,000                                                
                    1999:     165,000                                                 
                    2000:     25,000                                                  
                    2001:     25,000                                                  
                    2002:     25,000                                                  
          Each year, NCF had the option of paying sums equal to Roark’s               
          donations as premiums on the insurance policy.                              





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Last modified: May 25, 2011