THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Forward Air Corporation (FWRD)

4/24/2006 Proxy Information

Scott M. Niswonger, director and Chairman of the Board until May 26, 2005, owns a majority interest in the parent company of Landair Transport, Inc. (“Landair”). Until September 2005, the Company had a sublease with Landair pursuant to which the Company sublet to Landair a portion of the Company’s headquarters in Greeneville, Tennessee that is leased from the Greeneville-Greene County Airport Authority. The Company sublet the facility to Landair for consideration based upon the cost of such facility to the Company and an agreed-upon percentage of usage. The total sublease rental charged to Landair in 2005 was approximately $17,000.

The Company purchases air transportation services from Sky Night, L.L.C. (“Sky Night”), a limited liability corporation owned Mr. Niswonger. The air charter expense totaled approximately $105,000 in 2005. In addition, the Company has a sublease with Sky Night under which the Company subleases hangar space for aircraft at its Greeneville, Tennessee headquarters. The total sublease rental charged to Sky Night in 2005 was approximately $35,000.

4/20/2005 Proxy Information

Scott M. Niswonger, the Chairman of the Board, owns a majority interest in the parent company of Landair Transport, Inc. (“Landair”). The Company purchases truckload transportation services from Landair. Matthew J. Jewell, Senior Vice President, General Counsel and Secretary of the Company, served in these same capacities for Landair until May 2004.

During 2004, the Company provided various operational and administrative services to Landair. The Company charged Landair $0.2 million in 2004 for these services. Landair provided various operational and administrative services to the Company and charged it approximately $93,000 during 2004 for these services. In addition, Landair provided the Company with truckload services of approximately $0.2 million during 2004.

The Company leases its Greeneville, Tennessee headquarters from the Greeneville-Greene County Airport Authority. The Company subleases a portion of this facility to Landair. The calculation of rent for this sublease is based upon the cost of such facility to the Company and an agreed-upon percentage of usage. The total sublease rental charged to Landair in 2004 was approximately $25,000.

The Company purchases air transportation services from Sky Night, L.L.C. (“Sky Night”), a limited liability corporation owned by Scott M. Niswonger, the Chairman of the Board. The air charter expense totaled approximately $86,000 in 2004. In addition, the Company has a sublease with Sky Night under which the Company subleases hangar space for aircraft at the Company’s headquarters that is leased from the Greeneville-Greene County Airport Authority. The total sublease rental charged to Sky Night in 2004 was approximately $35,000.

4/19/2004 Proxy Information

Scott M. Niswonger, the Chairman of the Board, owns a majority interest in the parent company of Landair Transport, Inc. (“Landair”), a licensed motor carrier. Matthew J. Jewell, Senior Vice President, General Counsel and Secretary of the Company, served in these same capacities for Landair in 2003.

During 2003, the Company and Landair provided each other various operational and administrative services. The Company charged Landair approximately $200,000 and Landair charged the Company approximately $58,000 for these services in 2003. In addition, the Company and Landair engaged in transactions where Landair hauled deferred air freight shipments for the Company which were in excess of the Company’s scheduled capacity. The cost of these shipments to the Company was approximately $900,000 during 2003.

The Company subleases space to Landair at the Company’s headquarters in Greeneville, Tennessee, which the Company leases from the Greeneville-Greene County Airport Authority. Sublease rental income charged to Landair in 2003 was approximately $28,000.

The Company chartered an aircraft on an as-needed, hourly basis from Sky Night, L.L.C. (“Sky Night”) in 2003. Sky Night is owned by Scott M. Niswonger. The total air charter expense paid in 2003 was approximately $196,000. In addition, Sky Night subleases hangar space for aircraft at the Company’s headquarters, which Sky Night leases from the Greeneville-Greene County Airport Authority. The total sublease rental charged to Sky Night in 2003 was approximately $35,000.

4/16/2003 Proxy Information

Scott M. Niswonger beneficially owned approximately 19% of the Company and 82% of Landair Holdings, Inc. (“Landair”), a privately-held corporation and successor by merger to Landair Corporation, as of March 14, 2003.

During 2002, the Company and Landair provided each other various operational and administrative services under a contractual agreement. The Company charged Landair approximately $200,000 and Landair charged the Company approximately $40,000 in 2002. The Company provided Landair legal and general administration services and Landair provided the Company with insurance and claims services. The Company or Landair, as recipients of the services, may terminate any such services at any time on thirty days irrevocable written notice, and the Company or Landair, as providers of the services, may terminate any of the services on three months irrevocable notice.

During 2002, the Company and Landair routinely engaged in transactions where Landair hauled deferred air freight shipments for the Company which were in excess of the Company’s scheduled capacity. The cost of these shipments to the Company was approximately $1.6 million during 2002.

Landair shares certain facilities leased by the Company, and has been allocated a portion of the rent expense related thereto. The Company subleases space on the property containing the Company’s headquarters in Greeneville, Tennessee, which the Company leases from the Greeneville-Greene County Airport Authority. The Company subleases the terminal facilities to Landair for consideration based upon the cost of such facilities to the Company and an agreed-upon percentage of usage. Sublease rental income charged to Landair in 2002 was $79,000.

The Company chartered an aircraft on an as-needed hourly basis from Sky Night, L.L.C. (“Sky Night”) in 2002. Sky Night is owned by Scott M. Niswonger. The total air charter expense paid in 2002 was $264,000. In addition, Sky Night subleases hangar space for aircraft at the Company’s headquarters. The total sublease rental charged to Sky Night in 2002 was $35,000. Beginning in August 2002, Sky Night provided maintenance and housekeeping services at the Company’s headquarters and was paid $8,000.