Joseph R. Rollins - Page 5

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          disbursements.  The trustee has the power to invest and reinvest            
          the Plan’s assets in such securities and property, real or                  
          personal, wherever situated, as the trustee shall deem advisable.           
               Under the Plan, Rollins is to designate the Plan’s                     
          administrator; if Rollins does not designate an administrator,              
          then Rollins is to function as the administrator.  Rollins has              
          not designated an administrator.                                            
               Petitioner owns 100 percent of Rollins Financial Counseling,           
          Inc., a registered investment advisory company, hereinafter                 
          sometimes referred to as Rollins Financial.  In November 1993,              
          Rollins entered into an investment advisory agreement with                  
          Rollins Financial whereby Rollins Financial was to provide                  
          financial counseling services to Rollins.  The agreement provides           
          that petitioner, as Rollins Financial’s CEO, “will make all                 
          investment decisions on behalf of [Rollins] * * *.  The                     
          recommendations developed by [petitioner] are based upon the                
          professional judgment of [petitioner]”.                                     
          2.  The Loans                                                               
               a.  Overall                                                            
               As to each of the loans shown in table 1, petitioner made              
          the decision to lend the Plan’s money in the indicated amount to            
          the indicated borrower:  Jocks & Jills Charlotte, Inc.,                     
          hereinafter sometimes referred to as J & J Charlotte; Eagle Bluff           
          Golf Club, LLC, hereinafter sometimes referred to as Eagle Bluff;           






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Last modified: May 25, 2011