PRE-EMPLOYMENT SCREENING

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3 PRE-EMPLOYMENT SCREENING Did You Know... Your company can be legally liable for negligent hiring if you fail to thoroughly check a job applicant's background. Studies show that 30% of all applicants misrepresent information on their resumes'. Over 35% of potential employees have a criminal history, bad driving record, bad credit history, fake social security number, or a worker's compensation claim. Liability alone is reason enough to have a professional Pre-Employment Screening Company handle all of your needs. However, when you consider the time and expense of recruiting, hiring and training any employee, it is just not worth the risk. Trak-1 On-Line Service... Utilize our On-Line Service via our Web Site and receive the following benefits: Allows instant access to criminal reports, credit reports, social security traces, and more. Eliminate problems related to sensitive materials transmitted via fax machines. Review the status of our screening process for your potential applicants, 24-7 Provides you with the ability to Screen Your Own Applicants through our system Nationwide service available Trak-1 has 43 states online for criminal records (more coming soon). Trak-1 has a 50 state sex offender registry included! Trak-1 includes the 50 state Sex Offender Registry at no additional charge. The Majority of Trak-1's 43 state criminal and 50 state Sexual Offender records are updated monthly. Trak-1 checks over 200 million national criminal file records! Trak-1 can link all offices through our website. One option available is having each branch set up individually with a screen name and password. No office can view another s website. However, we can give an all-access password to one person in the main office. This person can gain access to all branches at anytime from one location.

4 Service Features Social Security Trace Acting as an identifier, this search reveals present and past addresses, employers and aliases. This trace would make you aware of any incongruous applicant information. Credit Report This report is provided in strict compliance with the Fair Credit Reporting Act, and its use is restricted for the use of employment purposes. Each applicant must sign a consent form prior to obtaining a credit report. Credit history will provide an employer insight into an applicant's character. Credit checks are a valuable resource and are recommended for all employees, especially for those being considered for financial positions. Criminal Convictions County Criminal Searches remain the most accurate source of reporting criminal records. Trak-1 researches potential criminal records for each applicant on a county-by-county basis as set forth in your criteria. Prices and response time can fluctuate depending on the location requested. State Criminal Searches are available for various states located throughout the U.S., some states still do not have an accessible database. State criminal searches provide a statewide search for misdemeanors and felonies for an individual. State searches are beneficial but are only as accurate as the counties that report to the state. Not all counties report to the state agency in a timely manner. Sexual Offense Reports (50 States) are now available through a specific database for many states. Our use of a combination of direct on-line accessibility, as well as direct research, allows us to attain the most up-to-date and accurate information available. It is recommended that you utilize a combination of all three criminal searches to expose a potential criminal background. Multi-State Criminal Searches (43 States) are comprised of information provided from various state reporting agencies including the Department of Public Safety and the Department of Corrections. Information provided includes subject description, felony and misdemeanor charges and convictions, file date, and disposition. Motor Vehicle Reports (DMV) DMV reports provide a wealth of personal data that can be used for cross-reference, and criminal offenses pertaining to motor vehicles which may not be revealed by other criminal checks. DMV reports are highly recommended on all applicants, especially those who drive company vehicles or use their personal vehicle for company purposes. Motor vehicle reports are restricted by law and may only be used for screening job applicants as defined by law under Permissible Purpose. Trak-1 only provides MVR reports to established commercial customers. Customers are required to obtain an authorized signature from each applicant, for each request. Most states are instant with a few taking 24-48hrs Employment History We verify dates of employment, position, salary, and reason for leaving and we also obtain a recommendation. In addition our verification staff will interview an employee's previous or current supervisor to attain vital information relating to attendance and performance. All information attained is in strict accordance with your criteria. Education Credentials An estimated one-third of all employment applicants falsify information about their educational background. Our research analysts contact the applicant's indicated registrar's office to verify the dates of attendance, area of studies, and degrees attained.

5 Professional Licenses It is not uncommon for applicants to misrepresent themselves as being the holder of a state or federally issued professional license. Our researchers contact the applicable governing body and verify the required information pertaining to the issuance of any particular license. Personal References Interviews are conducted with individuals indicated on a prospective employee's application; results are then summarized and reported to you. Workers Compensation Report Searches prior workers compensation claims. This report is available in states where Workers Compensation Claims are accessible.

6 Trak-1 Automated MVR Listing with State Fees State Semi-Automatic Instant State Fee Notes Alabama X $7.00 Alaska X $10.50 Special Authorization Required Arizona X $6.25 Arkansas Standard X $11.00 California X $3.00 Cannot be ran solo due to state law Colorado X $4.20 Connecticut X $16.00 Delaware X $4.00 Florida 3Yr. X $2.15 Florida 7Yr. X $3.40 Georgia 3Yr. X $5.00 Georgia 7Yr. X $7.00 Hawaii X $16.50 Special Authorization Required Idaho X $5.50 Illinois X $12.00 Indiana X $6.00 Iowa X $8.50 Kansas X $6.50 Kentucky X $4.50 Louisiana X $7.00 Special Authorization Required Maine X $7.00 Maryland X $9.00 Massachusetts X $7.00 Michigan X $7.00 Minnesota X $5.00 Mississippi X $11.00 Missouri X $1.25 Montana X $6.50 Nebraska X $3.00 Nevada X $7.00 New Hampshire X $13.50 Special Authorization Required New Jersey X $10.00 New Mexico X $2.99 New York X $7.00 North Carolina 3/7Yr. X $5.00 North Dakota X $3.00 Ohio X $2.00 Oklahoma X $10.00 Oregon X $7.50 Special Authorization Required Pennsylvania X $10.25 Special Authorization Required Rhode Island X $18.00 South Carolina 3/10Yr. X $7.25 South Dakota X $4.00 Tennessee X $7.00 Texas X $6.50 Utah X $7.25 Vermont X $8.00 Virginia 5Yr. X $7.00 Virginia Employment 7Yr. X $7.00 Washington X $10.50 Special Authorization Required Washington D.C. X $12.50 Special Authorization Required West Virginia X $5.00 Wisconsin X $5.00 Wyoming X $3.00 Semi-Automatic MVR's consist of a turn around time of approxiamately hours.

7 Workers' Compensation Rates and Turn Around Time STATE RATE TURN AROUND TIME Alabama AL - - Alaska AK $ weeks Arizona AZ $ days Arkansas AR $8.00 instant California CA $ days Colorado CO - - Connecticut CT $ weeks Deleware DE - - Florida FL $8.00 same day Georgia GA - - Hawaii HI $25.00 unknown Idaho ID $ days Illinois IL $ days Indiana IN - - Iowa IA $ hrs Kansas KS $ days Kentucky KY $ days Louisiana LA $8.00 same day Maine ME - - Maryland MD $ hrs Massachusetts MA $ hrs Michigan MI $ hrs Minnesota MN $ days Mississippi MS $ hrs Missouri MO - - Montana MT $ Nebraska NE $ Nevada NV $ days New Hampshire NH $ weeks New Jersey NJ $ New Mexico NM $ hrs New York NY - - North Carolina NC - - North Dakota ND $ days Ohio OH $8.00 same day Oklahoma OK $ hrs Oregon OR - - Pennsylvania PA $ weeks Rhode Island RI - - South Carolina SC $ days South Dakota SD - - Tennessee TN $ weeks

8 Workers' Compensation Rates and Turn Around Time STATE RATE TURN AROUND TIME Texas TX $8.00 same day Utah UT $ days Vermont VT $ weeks Virginia VA $ weeks Washington WA - - West Virginia WV $ Wisconsin WI - - Wyoming WY $ days

9 BUSINESS NAME: / SERVICE AGREEMENT Pre-Employment Screening Services Please Print Neatly Thank you Agent Name: This service agreement is made and entered into the day of, 200, by and between Trak-1 Technology (hereinafter called "Service Provider") and (hereinafter called "Client"). Client Address: County: Billing Address: Phone: Fax: Contact Person: Invoice (If invoiced, there is a standard $3.50 per invoice handling fee. Invoice due upon receipt) Credit Card Client hereby allows Service Provider to bill all monthly activity to Client s credit card. Client agrees to pay a $25.00 penalty if insufficient funds are available. Client also agrees that they are responsible for payment by alternate means of payment if credit card transaction is declined. Credit Card Type: MC VISA AMEX Credit Card #: Exp. Date: Name On Credit Card: Credit Card Billing Address Please include Accounts Payable contact: Notes: COVENANTS OF SERVICE PROVIDER I. Service Provider agrees to accept all Employment Applications submitted by the Client for the purpose of performing background verifications. Client may use direct online system for applicable reports. Client acknowledges that not all background screening products and services are available directly on-line. Client also acknowledges that use of various components of individual public information such as, but not limited to, motor vehicle reports and consumer credit reports are heavily regulated by law. Motor vehicle reports and consumer credit reports require written authorization from applicant. It is the Client s responsibility to obtain signed written authorization from applicant prior to obtaining motor vehicle reports, consumer credit reports, and other reports where regulated by law. II. Service Provider agrees to verify the validity of all information provided on each Employment Application submitted by the Client as set forth in the Client s specific criteria for only the following services selected and as described hereunder. P.O. Box , Oklahoma City, OK Fax (405) Phone (405) Tech Support

10 Broadscreen Search INSTANT! Product/Service Description PRICING Price per search/individual $15.99 Multi-state Criminal and Sexual Offender Search (Includes 43 States Criminal and 50 States plus D.C. Sexual Offender Registry) Non-Covered States Include: Colorado, Delaware, Louisiana, Massachusetts, South Dakota, Vermont, West Virginia, and Wyoming Please note that Criminal Records are available in the above states, however, must be accessed through manual state or county searches. Additional Fees Apply. Package #1 INSTANT! Broadscreen Search plus Social Trace verifies their identity. Verifies their name, social security number and date of birth as well as any known affiliated addresses and previous employers of the applicant. (Access to this information requires a signed consent form, per FCRA) $18.99 Package #2 Package #1 plus MVR (Motor Vehicle Report) MVR reports are instant in most states, but can take hours in others. A faxed copy of the applicant s consent may be necessary. Trak-1 fax number is (888) MVR state fee guide is available upon request (Access to this information requires a signed consent form, per FCRA) * $23.99 Customize Your Own Package : Workers Compensation Searches prior workers compensation claims. Workers Compensation reports are not available in all states. (Results returned via usually within 24hrs) -A Workers Compensation Check may be added to any above package for $4.50+state fee (WC guide is available upon request) * $6.00 Motor Vehicle Record MVR records Most states are instant with a few taking 24-48hrs. A faxed copy of the applicant s consent may be necessary. Trak-1 fax number is (888) * $5.00 Credit Report (This report is provided in strict compliance with the Fair Credit Reporting Act and its use is restricted for the use of employment purposes. Each applicant must sign a consent form prior to obtaining a credit report.) INSTANT! $6.00 Employment Verification, Education Verification, Professional License Verification (Each Individually) $12.50 (Applicable fees may apply) * Applicable State MVR and WC Fees May Apply To These Products All prices are subject to change. If prices change, Trak-1 will give Client a 30 day notice

11 COVENANTS OF CLIENT I. Client agrees to provide Service Provider with complete and legible employment applications and/or all subsequent information as required by client necessary to fulfill its obligations as set forth within the Covenants and Conditions of this Service Agreement. Federal and state law requires consumer reporting agencies to verify the identity and permissible use of end-users of consumer reports. Every time Client requests a report from Service Provider, client certifies that it is obtaining the report for a permissible purpose as authorized by this Service Agreement or provisions within FCRA. II. Client hereby agrees to pay the Service Provider all applicable fees for services rendered as set forth within this agreement via credit card that Service Provider will keep on file. Service Provider may allow client to be invoiced if their monthly volume exceeds ten (10) employment applications within one (1) calendar month. If Client is invoiced by Service Provider, Client agrees to pay all applicable fees for services rendered no later than (10) ten days following the date of invoice issued by Service Provider for services rendered. Invoices paid after (10) days from date of issuance by service provider are subject to an additional 2% per month late fee. Furthermore, Client agrees that a dispute of any invoice submitted by the Service Provider must be furnished in writing to Service Provider no later than the (5 th ) day following the receipt of said invoice. III. Client understands that Service Provider shall use good faith efforts to obtain reliable and accurate information but that the Service Provider relies heavily on other various reporting agencies to obtain background information. Therefore, Client understands that Service Provider does not guarantee the accuracy or validity of such information. Client hereby agrees to indemnify and hold Service Provider, and its officers, Service Providers, and employees harmless from any claim or demand, including reasonable attorney s fees arising out of information and services provided to said Client. IV. Client understands and agrees that the initial term of this Agreement is 12 months and the Agreement shall automatically renew for an additional 12 months unless cancellation of this agreement must is submitted in writing to Service Provider no less than thirty (30) days prior to termination. CONDITIONS Client acknowledges that information supplied on Consumer Credit Reports and Motor Vehicle Reports are protected under the Fair Credit Reporting Act, 15 U.S.C. 1681, et seq. (the "Act"). Client further acknowledges and understands that the information disclosed may be governed or regulated by a State law or local ordinance. These materials may include specific certifications, examples of consumer authorization language or adverse action notices, copies of management agreements, business licenses, professional literature or advertising. Service Provider will identify any additional materials, if any, at the time they are required. The FCRA requires that information contained in a consumer report shall not be disclosed to a person not authorized to receive it, similarly, applicable state or local law may impose restrictions upon release, disclosure or use of said information. Client agrees to hold in strictest confidence all information derived from Service Provider and Client shall not disclose under any circumstances, the contents of the information to any person or entity except as authorized under the FCRA. Client shall become familiar with said FCRA and Client accepts complete and full responsibility for any damage resulting from violations of said FCRA. Client certifies to Service Provider that BEFORE obtaining a consumer and/or investigative consumer report. The Client: (1) Will only use the consumer report for a permissible purpose (e.g., employment purpose) (2) Will identify the specific permissible purpose for the report. (3) Are in full compliance with their obligations under the FCRA. (4) Will not misuse any information in the report in violation of federal or state equal employment opportunity laws or regulations. In addition to the certifications listed above, Client represents to Service Provider, by signing this Agreement, that Client has: (1) Disclosed to the applicant, in writi ng, that a consumer report may be obtained for employment purposes. And (2) Obtained a signed, written Authorization from the applicant. For Investigative Reports: By signing this Agreement, Client represents to Service Provider that before obtaining the investigative consumer report on an Applicant, or not later than three days after the date on which Client orders the investigative consumer report, Client has or will: (1) Specifically disclose to the applicant, in writing, that an investigative consumer report may be obtained for employment purposes including information as to his character, general reputation, personal characteristics, and mode of living, which ever are applicable. (2) Disclosure to the applicant, in writing, that the applicant has the right to request disclosure of the nature and scope of any investigative consumer report. An applicant may also have a right to request disclosure of the nature and scope of a non-investigative consumer report, or non-investigative portions of a consumer report.

12 Indemnification: Client shall indemnify, defend and hold harmless Service Provider and its officers, directors, employees, successors, and assignees from any and all losses, liabilities damages and claims and all related costs and expenses including reasonable attorney fees, arising from or in connection with any negligence or breach of this Agreement by Client. Service Provider shall not be liable to Client or any third party for any alleged or actual losses resulting from any acts or omissions by Client or by a third party who provided information to Service Provider in the exercise of its ordinary business practice. Client is solely responsible for ensuring that all searches requested by Client (and to be conducted by Service Provider) are requested by Client with appropriate authorization and for lawful and permissible purposes, pursuant to the Fair Credit Reporting Act, Fair Housing Act and any other applicable state or federal laws. Client shall indemnify, defend and hold harmless Service Provider and its officers, directors, employees, successors, and assignees from any and all losses arising in connection with any searches conducted at Client s request by Service Provider. Client shall indemnify, defend and hold Service Provider harmless, including its officers, directors, employees, Service Providers, successors, assigns, and third party suppliers, from any and all losses arising in connection with the same. Disclaimer of Warranty: Client understands that Trak-1 obtains its data from third parties and that Trak-1 therefore cannot guarantee or warrant the accuracy, merchantability or fitness for a particular purpose of the Data and Services provided. Damage Exclusion: In no event will Service Provider be liable for any indirect, special, incidental, punitive or consequential damages including lost profits, earnings, or business opportunity arising out of the subject matter of this agreement or as a result of the operability or inoperability of the Trak-1 softwareproduct. Penalty for Non-Compliance: There are legal consequences for failure to provide a consumer with the required disclosure(s) and neglecting to obtain a consumer s authorization before requesting a consumer report. Clients may also face legal liability for failure to provide a Pre-Adverse Action Disclosure and an Adverse Action Notice to consumers against whom adverse action is taken based in whole or in part to information in the consumer report. Client acknowledges that during the course of this Service Agreement Client may be in receipt of proprietary and confidential information relating to the Service Providers business and hereby agrees to hold said information in strict confidence including, but not limited to, the Covenants and Conditions of this Service Agreement. The waiver of a breach or violation of any Covenant or Condition of this agreement shall not be construed to be a waiver of any subsequent Covenant or Condition of this agreement. This agreement shall be interpreted, construed and governed according to the laws of the State of Texas. Any person who knowingly and willfully obtains information on a consumer form a consumer reporting agency under false pretenses shall be fined under Title 18, United States Cod, imprisoned for not more than two (2) years, or both. Client agrees to pay a one time set up fee of $50.00 payable to Trak-1 Holdings, LLC /P.O. Box /Oklahoma City, OK , along with an annual maintenance fee of $25.00 due at anniversary date of service agreement. AGREED: Service Provider: TRAK 1 Technology AGREED: Print Name: By: Trak-1 Holdings Authorized Signature: Title: Date: P.O. Box , Oklahoma City, OK Fax (405) Phone (405) Tech Support

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