Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 34

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          turn, reduced the factor.  The amount of TLC’s gross profit,                
          however, was not affected by the per diem percentage that TLC               
          used to determine any per diem amounts of each driver-employee.             
               The batch report that each trucking company client submitted           
          to TLC each payroll period included each trucking company cli-              
          ent’s computation of the lease fee to which TLC was entitled                
          under the terms of the exclusive lease agreement.  In order to              
          determine the amount of such lease fee payable to TLC for each              
          payroll period, each trucking company client increased the amount           
          of the lease fee to which TLC was entitled by (1)(a) the total              
          amount of the reimbursable expenses due to each driver-employee             
          whom TLC leased to such trucking company client and (b) any                 
          miscellaneous additions or carryover credits and reduced that sum           
          by (2)(a) the total amount of advances that such trucking company           
          client paid to each driver-employee whom TLC leased to it and               
          (b) any miscellaneous subtractions or debit balances.  (We shall            
          refer to the amount of the lease fee payable each payroll period            
          to TLC by each trucking company client after such additions and             
          subtractions as the payroll period net lease fee due.)                      
               Each trucking company client generally paid TLC the payroll            
          period net lease fee due, as reflected in the batch report, on              
          the day on which TLC issued a check to each driver-employee for             
          such driver-employee’s net wages and any per diem amounts.  Each            
          trucking company client paid such payroll period net lease fee              






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Last modified: May 25, 2011