Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 24

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          tained in accordance with DOT specifications.                               
               TLC provided each driver-employee with a monthly newsletter            
          and periodically provided each driver-employee with materials on            
          driving safety, drug usage, and compliance with DOT requirements.           
          TLC also conducted safety programs for the driver-employees,                
          which included periodic on-site safety training for each driver-            
          employee and safety awards and bonuses.  Each trucking company              
          client provided each driver-employee whom TLC leased to it with             
          any necessary orientation and training with respect to such                 
          trucking company client’s trucking equipment.                               
               TLC sponsored certain employee benefits for its driver-                
          employees, including:  (1) A section 401(k) plan; (2) a section             
          125 flexible benefit plan; (3) group or individual health insur-            
          ance; (4) a $5,000 group term life insurance policy; and (5) the            
          option of purchasing additional group term life insurance.  TLC             
          paid the premiums associated with the $5,000 group term life                
          insurance policy.  TLC bore the administrative costs but no other           
          costs associated with the various employee benefits that it                 
          sponsored for its driver-employees.  Each driver-employee paid              
          such other costs through payroll deductions.13                              

               12(...continued)                                                       
          client].”                                                                   
               13Certain trucking company clients paid at least part of the           
          premiums associated with the health insurance plan that TLC                 
          sponsored for the driver-employees whom TLC leased to them.  In             
                                                             (continued...)           





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Last modified: May 25, 2011