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Lessor shall indemnify Lessee against all liabil-
ity and loss in connection with and shall assume full
responsibility for payment of all federal, state and
local employee taxes or contributions imposed or re-
quired under unemployment insurance, social security
and income tax laws with respect to Lessor’s employees
engaged in the performance of the Agreement.
* * * * * * *
EXHIBIT A
COMPENSATION SCHEDULE
Lessee shall compensate Lessor via certified bank
funds for the services provided by Lessor’s drivers by
the following methods. (By cents per mile, an hourly
wage, a percentage of Lessees gross revenue produced by
Lessor’s employees or by any other method agreed to or
described below.) Any of the below which are directly
attributable to services performed for the Lessee by
the Lessor’s employee. (See addendum A).
The above compensation multiplied by (See addendum B),
surcharge or charge currently or retroactively charged
the Lessor and other charges attributable to services
performed. The rate is subject to change based upon
federal and state tax changes and unemployment and
workers compensation rates throughout the year, PLUS
Lessor’s portion of health insurance costs for Lessor’s
employees assigned to Lessee (used or not), and charges
to Lessee by Lessor for Lessee’s operation expense
(such as fuel, tire repair, other expenses for Lessee,
and charges for truck expense advances) multiplied at
the rate of ONE HUNDRED (100%) percent.[10] [Reproduced
10None of the exclusive lease agreements into which TLC and
a trucking company client entered prior to calendar year 1993
contained addendum A and addendum B. Instead, such exclusive
lease agreements contained Exhibit A, which set forth the same
type of information as that set forth in Addendum A and Addendum
B that were included as part of each exclusive lease agreement
into which TLC and a trucking company client entered during the
taxable years at issue. Addendum A listed the type of trucking
company (i.e., over-the-road or local) and the method used to
compute the gross amount that TLC was to pay each driver-employee
whom it leased to a trucking company client. Addendum B listed
(continued...)
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