Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 13

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          his or her net wages and any per diem amounts,18 regardless of              
          whether the trucking company client to which TLC leased such                
          driver-employee paid TLC the lease fee (discussed below).  TLC              
          generally paid such net wages and any per diem amounts to each              
          driver-employee on the day after TLC received a batch report.               
          (We shall refer to TLC’s obligation with respect to each driver-            
          employee for each payroll period to pay to each such driver-                
          employee such aggregate amount of net wages and any per diem                
          amounts as well as its obligation to pay the employer’s share of            
          employment taxes, withhold and pay the driver-employee’s share of           
          employment taxes, withhold and pay Federal and State income                 
          taxes, make daily electronic funds transfers of the appropriate             
          amounts of such taxes to the Internal Revenue Service (IRS) and             
          appropriate State agencies, and pay workers’ compensation insur-            
          ance premiums as TLC’s payroll obligation.)                                 
               Pursuant to each exclusive lease agreement, each payroll               
          period each trucking company client paid TLC a lease fee (lease             
          fee) that was not broken down into component parts.19  Each                 

               18The aggregate amount of each driver-employee’s net wages             
          and any per diem amounts that such driver-employee was entitled             
          to receive was increased by the amount of any reimbursable                  
          expenses for which a trucking company client was obligated to               
          reimburse such driver-employee and decreased by the amount of any           
          advances that a trucking company client paid to such driver-                
          employee.                                                                   
               19Pursuant to each exclusive lease agreement, the aggregate            
          amount of the batch report lump sum amount with respect to each             
                                                             (continued...)           





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Last modified: May 25, 2011