Welcome to the DFA Mileage Reimbursement Plan Dial in telephone number to listen: Toll-free: +1 (888) 808-6929 Participant code: 6247578 Please Mute your phone. Un-Mute during Q&A sections. The Conference Call will begin shortly

Mileage Reimbursement Presenters: Ken Peebles, DFA Hagood Tighe, Fisher & Phillips LLP Mike Bassi, Runzheimer International Confidential -Not for Distribution; 2010

This presentation is not legal advice. Please seek legal counsel.. Legal Background Presented by: J. Hagood Tighe, Esq. htighe@laborlawyers.com (803) 255-0000 Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work® www.laborlawyers.com This presentation is not legal advice. Please seek legal counsel.. Confidential -Not for Distribution; 2010

Legal Background Employers are required to pay employees minimum wage (tip credit employees are not considered to be paid more than minimum wage, regardless of the amount of tips received). Many lawsuits have been filed claiming that illegal sub minimum wages are being paid to drivers due to inadequate reimbursement for business expenses, including mileage. Confidential -Not for Distribution; 2010

Legal Background Federal law only requires reimbursement for business expenses to the extent they impact minimum wage. The plaintiff’s attorneys in some cases have claimed that the mileage reimbursement should be at the IRS rate. However, the US DOL regulations say that reimbursement can be for actual costs or a reasonable approximate. Confidential -Not for Distribution; 2010

Legal Background To minimize the risk that your business will be the target of a lawsuit, you need to ensure that you are compliant with the law. The courts have not yet ruled in these cases as to exactly how you should reimburse for mileage. Confidential -Not for Distribution; 2010

Legal Background An expert estimate of vehicle operating costs should allow you to demonstrate a good faith effort to reimburse drivers for the reasonably approximate cost of the use of their vehicles. This will mean a move to per mile reimbursement. Many franchisees have already done this. Confidential -Not for Distribution; 2010

Legal Background Questions and Answers

DFA / Runzheimer Program Based on a request of numerous Franchisees for help and guidance on driver compensation After discussing with DPLLC, the DFA decided to take the lead on finding external support for Franchisees Our research and Franchisee recommendations led us to contacting Runzheimer Runzheimer is considered to be the leader in mileage reimbursement analysis for employers Confidential -Not for Distribution; 2010

About Runzheimer Trusted provider of accurate, fair and defensible geographical cost information since 1933 Work with IRS to establish cent-per-mile rates Business Auto Allowance consultants to 1,200 businesses with over 125,000 field “drivers” Analyze needs and objectives Policy review – vehicles or allowances Tax issues surrounding choices/Accurate payments Cost controls and employee retention Develop specific programs and policies Confidential -Not for Distribution; 2010

The Runzheimer Plan of Vehicle Standard Costs Comprehensive Reimbursement Policy Drive personal vehicle for company travel Reimbursed based on a “standard vehicle” A vehicle that is reasonable for the business task Local costs are recognized Differing business mileage is recognized Equitable to all drivers Confidential -Not for Distribution; 2010

Both costs are then reduced to a Cents-Per-Mile rate for deliveries What are Vehicle Costs? Dual Nature of Costs Both costs are then reduced to a Cents-Per-Mile rate for deliveries Confidential -Not for Distribution; 2010

Cents Per Mile The IRS Optional Standard Mileage Rate 50 cents/mile for 2010 can be paid tax-free A “safe harbor” for taxpayers without receipts Based on an average vehicles, average location Lags Market by up to 14 months Confidential -Not for Distribution; 2010

Confidential -Not for Distribution; 2010

Reimbursement Data by Location, Data Run provided to DFA Confidential -Not for Distribution; 2010

Runzheimer International Questions and Answers

DFA/Runzheimer Program Program is available to all 2010 DFA members The DFA is the clearing house and has taken on the administrative duties The DFA is also supplementing the actual cost The cost per store for DFA members is only $38 All of the participating Franchisee’s stores must be included in the analysis Each participating Franchisee receives easy to use instructions and documents to submit their data. Confidential -Not for Distribution; 2010

Process and Documents Franchisee collects vehicles’ make, model & year DFA provides one spreadsheet with four documents 1st is a list of representative make and models and what size vehicle category they are considered 2nd is a ten step easy to use instructional guide 3rd is used to input vehicle information 4th is your order form and it lists your actual store locations and the average age and size of the vehicles used in your organization Confidential -Not for Distribution; 2010

1st Document Confidential -Not for Distribution; 2010

2nd Document Confidential -Not for Distribution; 2010

2nd Document Confidential -Not for Distribution; 2010

3rd Document Confidential -Not for Distribution; 2010

4th Document Confidential -Not for Distribution; 2010

DFA Results Report to Franchisees Confidential -Not for Distribution; 2010

Program Facts & Recap Open to 2010 DFA members at $38 per store Eight week sign up period that ends on 2/12/09 Master DFA order form sent to Runz every Friday Turnaround time is 10 working days from the Friday that order was submitted as part of Master Payment is due when Franchisee places order Franchisees receive report with their specific results Runzheimer’s analysis is well known & respected and very defensible with various agencies Confidential -Not for Distribution; 2010

Next Steps Ken@dominosdfa.com Want to sign up? Need more information? Need support afterwards with the documents? Ken@dominosdfa.com Confidential -Not for Distribution; 2010

DFA/Runzheimer program Questions and Answers Confidential -Not for Distribution; 2010