Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 16

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          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              
          due by wire transfer or direct deposit into an account of TLC.              
          TLC did not maintain separate accounts for the funds received               
          from its respective trucking company clients.  As discussed                 
          above, for each payroll period TLC was obligated to, and did, pay           
          such driver-employee his or her net wages and any per diem                  
          amounts, regardless of whether the trucking company client to               
          which TLC leased such driver-employee paid TLC the net lease fee            
          due.                                                                        
               For the calendar years 1993, 1994, 1995, and 1996, TLC sent            
          a form letter (per diem letter) to each trucking company client,            
          which set forth the total of all per diem amounts that TLC paid             
          to the driver-employees whom it leased to such trucking company             
          client during the preceding calendar year.  The per diem letter             
          for calendar year 1993 (sent to each trucking company client                
          early in calender year 1994) stated in pertinent part:                      
               Our billings to you include amounts paid, on your                      
               behalf, to our drivers, for road expenses; often re-                   
               ferred to as per diem.  The amounts billed are of                      
               course, reduced by the amounts you paid directly to the                





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Last modified: May 25, 2011