Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 5

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               TLC retained the sole and absolute authority to hire each              
          driver-employee and to terminate each driver-employee’s employ-             
          ment with TLC.  Each truck driver whom TLC hired as a driver-               
          employee played an integral role in TLC’s business of leasing               
          driver-employees to its trucking company clients.                           
               Before TLC hired a truck driver as a driver-employee, such             
          truck driver had to pass TLC’s screening and approval process               
          that it used to determine whether to hire such truck driver.  (We           
          shall refer to the screening and approval process that TLC used             
          to determine whether to hire a truck driver as TLC’s screening              
          and approval process.)  TLC’s screening and approval process was            
          designed to determine a truck driver’s fitness to serve as a                
          driver-employee of TLC.                                                     
               As required by each exclusive lease agreement, TLC used its            
          best efforts (e.g., by advertising) to, and did, recruit driver-            
          employees.  TLC hired approximately 25 percent of its driver-               
          employees through its own recruitment efforts.                              
               Each trucking company client also located and referred                 
          prospective driver-employees to TLC.  If a trucking company                 
          client located a truck driver whom it wanted TLC to hire, the               
          trucking company client interviewed such truck driver, had him or           
          her complete an application provided by TLC, and forwarded that             
          completed application to TLC.  TLC subjected any such truck                 
          driver to TLC’s screening and approval process.  TLC rejected 10            

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Last modified: May 25, 2011