Roland and Marie Womack - Page 4

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               Some of the money received by the Florida State Lottery is             
          invested in U.S. Treasury zero coupon bonds that, upon maturity,            
          provide the funding to pay lottery winners.  The Florida State              
          Lottery is both owner and beneficiary of the investments used to            
          fund payments to lottery winners.  The Florida State Lottery did            
          not offer winners the option of a lump-sum payment at the time              
          Mr. Womack won the lottery.  Under Florida law, Mr. Womack was              
          required to obtain the approval of the Circuit Court of the                 
          Second Judicial Circuit, in and for Leon County, Florida, to                
          transfer his right to receive future lottery winnings.                      
               On or about November 10, 1999, Mr. Womack entered into an              
          agreement with Singer Asset Finance Co., L.L.C. (Singer), to sell           
          and assign all of his remaining rights to receive his 16                    
          remaining annual lottery payments in the gross stated amount of             
          $2.4 million, payable in annual installments through the year               
          2016.  In exchange for Mr. Womack’s agreement to assign his                 
          remaining lottery installments, Singer paid him a lump sum of               
          $1.328 million during the year 2000.  Mr. Womack obtained the               
          approval of the Florida Circuit Court in the form of a court                
          order dated December 5, 1999.  The Florida State Lottery                    
          confirmed receipt of the court-approved assignment on December 9,           
               The Womacks reported the first four $150,000 lottery                   
          installment payments for 1996 through 1999 as ordinary income on            

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Last modified: May 25, 2011