Barry B. Bealor and Nancy L. Bealor, et al. - Page 102

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          professional fees, and $5,330 went to BBPA as an "exchange                  
          account".                                                                   
          MIT 83 Employee Leasing Agreement                                           
               As with MIT 80 and MIT 82, MIT 83 and Machise entered into             
          an employee leasing agreement, dated January 1, 1983.  Therein              
          MIT 83 agreed to provide all the individual employees and                   
          independent contractors required by Machise to conduct its                  
          business for the period January 1 through December 31, 1983.                
          Like the prior agreements, the MIT 83 agreement stated that                 
          Machise would provide the partnerships with estimates of the                
          number of employees or contractors it would need to carry on its            
          business.  It further stated that the partnerships would provide            
          Machise with employees, independent contractors, and equipment,             
          plus biographical information about those workers.  It again                
          provided that the partnership would have the right to control and           
          direct the employees and that the partnership would "instruct               
          each individual as to his work hours and nature of his duties."             
          As to the contractors, the partnership again had "the exclusive             
          right to determine the contractor to be used" in Machise's                  
          business.                                                                   
               The employee leasing agreement specifically required MIT 83            
          to advance ten-elevenths of its invested capital--or $2,888,666--           
          to Machise.  MIT 83 accomplished this advance by endorsing to               


          (...continued)                                                              
          partners' short-term obligations.                                           




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