Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 15

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          overhead; and (5) TLC’s profit (profit).                                    
               The factor was a flat rate that ranged from 1.15 to 1.25.              
          The factor was not broken down into component parts.  Conse-                
          quently, no trucking company client knew how much of the factor             
          to which TLC and such trucking company client agreed was intended           
          to cover each of the various expenses associated with TLC’s                 
          driver-leasing business (e.g., gross wages, any per diem amounts,           
          the employer’s share of employment taxes, workers’ compensation             
          insurance, and compensation of persons who performed services for           
          TLC other than TLC’s driver-employees).                                     
               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              
          calculate 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            






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Last modified: May 25, 2011