Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 8

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          the transport of such goods and merchandise;  and (5) had the               
          authority to determine whether to permit a driver-employee whom             
          TLC leased to it to take any vacation days.  TLC did not own any            
          interest in, had no rights in the profits of, and had no respon-            
          sibility for the losses of the business of any trucking company             
          client.                                                                     
               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 and any administrative costs associated with              
          the $5,000 group term life insurance policy.  TLC bore the                  
          administrative costs but no other costs associated with the                 
          various other employee benefits that it sponsored for its driver-           
          employees.  Each driver-employee paid such other costs through              
          payroll deductions.8                                                        
               Pursuant to each exclusive lease agreement, each trucking              
          company client had the right to decline using a particular                  
          driver-employee whom TLC wanted to lease to it.  While TLC was              


               8Certain 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             
          such instances, TLC paid the trucking company client’s share of             
          such health insurance premiums and charged such premiums to the             
          trucking company client.                                                    





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Last modified: May 25, 2011