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as jobs are incurred. Also C6W rents its rail cars (:scrap cars) to the Parent Company on a monthly basis. Transactions between C6w and other subsidiaries of the: Parent Company: C6W provides the Metals Companies with incoming shipments to the Pueblo Plant and bills the l~letals Companies as incurred. C6W also leases to Pueblo Met.sls Co. real property (trackage and access to Pueblo Plant) on an annual. basis. 3. C6W Purchases rail required for maintenance from the .Parent Company. 4. General liability insurance, railroad insurance, property insurance aid automobile insurance are carried by the Parent Company and allocated to C6W on a monthly basis. Excess workers' compensation carried by the Parent Company is also allocated to C6W. 5. Basic health coverage is provided to employees of C6W through the Parent Company's HMO (Peak Health) and self- insured plan administered by Alta. Life insurance (Metropolitan Life) is provided to CiW through the Parent Company. Plan costs are allocated monthly to C6W. Non- operating union employees are covered by a national health 6 life insurance plan. 6. The Farent Company offers optional life insurance program to certain exempt salaried employees of C6w which coverage is partially paid by employee and the Parent Company. C6W reimburses the Parent Company for any of these costs. 7. Costs related to the Master Pension Plnn are also allocated to C6W. Pension funding is due lrom C6W when paid by the Parent Company. 8. Income taxes for federal and state are calculated by the Parent Company and allocated to CiW (as well as other subsidiaries of the Parent Compnny). Provisions for payment of taxes are made by the Parent Company; amounts to be paid by subsidiaries nre allocated to the subsidiaries and are paid quarterly by the subsidiaries. 9. Miscellaneous costs for ailing legal documents and miscellaneous fees are reimbursed to the Parent Company as incurred. 10. On September 19, 1990, The Colorado i Wyominq Railway Company made a secured loan to its parent company, CF6I Steel Corporation o! 52,000,000. The terms of the loan provide for quarterly interest payments with interest being calculated quarterly at the prime rate, as published on the 4