Barry B. Bealor and Nancy L. Bealor, et al. - Page 69

                                       - 17 -                                         
               Thus, at the conclusion of this series of transactions,                
          Intercoastal held, as an advance, the $2.4 million in checks that           
          it had issued to the partners in exchange for their notes, and              
          the partners owed Intercoastal $2.4 million on their notes.                 
               The above transactions are depicted in Illustration No. 1,             
          infra p. 25.                                                                
          Operation of MIT 80                                                         
               Following execution of the employee leasing agreement the              
          same employees and independent contractors who had performed                
          services for Machise continued to perform the same services                 
          for Machise.  Neither Machise nor MIT Personnel--the prior                  
          employers--gave written notice of termination to the employees              
          and independent contractors.  The employees and independent                 
          contractors did not submit formal employment applications to MIT            
          80.                                                                         
              Bucci and Ingemi were the individuals most knowledgeable               
          about the detailed work assignments of Machise's employees.                 
          They actually directed and controlled the activities of those               
          employees.  However, there was no provision in the employee lease           
          with MIT 80, purportedly the new employer, or any other document,           
          under which Bucci and Ingemi were to provide such direction and             
          control.  Nor was there any provision in any agreement for                  
          remunerating Intercoastal, Bucci, or Ingemi for undertaking to              
          manage the Machise personnel on behalf of MIT 80.  Machise made             






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