First Check Applicant Screening Membership Agreement

Client Certification of Use for Background Reports
The Undersigned User and First Check hereby agree to the following:

User has access to consumer reports, defined as ANY report to determine an individual’s eligibility, as outlined in the Fair Credit Act (FCRA), which includes employment (pre-employment, promotion and reassigning, periodic background checks), volunteer screening, tenant screening, and use in connection with a financial transaction/extension of credit or the underwriting of insurance. All reports furnished by First Check are based upon your certification that you have a permissible purpose to obtain the report. The information contained in First Check reports was obtained in good faith from sources deemed reliable, but the completeness or accuracy is not guaranteed. User agrees to hold First Check and its’ agents harmless from any error or omission contained in First Check reports.

1. Requesting a Consumer Report and/or Investigative Consumer Report for Employment Purposes.

User certifies and warrants that a consumer report for employment purposes will not be requested unless:
A. A clear and conspicuous disclosure has been made in writing to the consumer before the report is obtained, in a document that consists of the disclosure that a consumer report may be obtained for employment purposes.
B. The consumer has authorized in writing the procurement of the report.
C. If an Investigative Consumer Report is requested, the consumer must be notified in writing not later than three days of requesting said report.
1. A consumer Summary of Rights must be provided in the format approved by the Federal Trade Commission. An initial copy will be provided by First Check.
2. The Consumer has the right to request the nature and scope of the investigation and the employer must respond in writing not later that five days after receiving the consumers request or from the date the investigation was first requested, whichever is the later.

2. Requirements upon an Adverse Action/Decision

User certifies and warrants that before taking an adverse action due to the contents in whole or part of the Consumer Report, it will provide to the consumer:
A. A copy of the Consumer Report
B. A copy of the Summary of Consumer Rights in the format approved by the Federal Trade Commission. An initial copy of the summary will be provided by First Check.
C. Adverse Action Notification:
1. Must be in written, oral, or electronic form.
2. Must contain First Check’s name, address and phone number.
3. Must advise the consumer of his/her right to obtain a free copy of the report within 60 days of the adverse action and to dispute the accuracy or completeness of the report.
4. User acknowledges that this entire procedure must be repeated
before future reports on the individual are requested.
5. User will hold the contents of the consumer report in strict confidence and use information for purposes outlined in the disclosure.
6. Failure to comply with FCRA requirements can result in state or federal enforcement actions, as well as private lawsuits. (Section 606, 617, 621). In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution.

FCRA Requirements (Federal Fair Credit Reporting Act Public Law 91-508)
Access Security Requirements
Although the FCRA primarily regulates the operations of consumer credit reporting agencies, it also affects the user of the information. Please read the Fair Credit Reporting Act located at http://www.ftc.gov/os/statutes/fcrajump.htm. Your signature below acknowledges your familiarity with the FCRA. We suggest you and your employees become familiar with the following sections in particular: 604 – Permissible purpose of reports, 610 – Conditions of disclosures to consumers, 615 -Requirements of users of consumer reports, 616 – Civil liability for willful noncompliance, 617 – Civil liability for negligent noncompliance, 619 – Obtaining information under false pretenses, 620 – Unauthorized disclosures by officer or employee.

Each of these is of direct consequence to users who obtain reports on consumers.

As directed by law, credit reports may only be issued if they are to be used for extending credit, review or collection of an account, employment purposes, underwriting insurance, or in connection with some other legitimate business transaction such as an investment, partnership, etc. It is imperative that you identify each report to be used for employment purposes
when such a report is ordered. Additional state laws may also impact your usage of reports for employment purposes.

First Check strongly endorses the letter and spirit of the Federal Fair Credit Reporting Act. We believe that this law and similar state laws recognize and preserve the delicate balance between the rights of the consumer and the legitimate needs of commerce.

In addition to the Federal Fair Credit Reporting Act, other federal and state laws addressing such topics as computer crimes and unauthorized access to protected databases have also been enacted. As a prospective use of consumer reports, we expect that you and your staff will comply with all federal statutes and the statutes and regulations of the state in which you operate.

Regarding Access Security Requirements, we (as a reseller) have an obligation to implement policies which protect the confidential nature of credit databases and assure respect for the consumer’s right to privacy. First Check customers are required to demonstrate a “permissible purpose” for obtaining credit reports and must act responsibly when accessing consumer credit databases.

It is a requirement that all First Check customers take precautions to secure any system or device used to access consumer credit information. To that end, the following requirements have been established:
* Your First Check account number and any passwords must be protected in a way that this sensitive information is know only to key personnel. Under no circumstances unauthorized persons have knowledge of your password. the information should not be posted anywhere in your facility.

*Any system access software you may use, whether developed by your company or purchased from a third party vendor,
must have your account number hidden or embedded so that the password is known only to the supervisory personnel. Each
user of your system access software then must be assigned a unique logon password.

* Your account numbers and passwords are not to be discussed by telephone to any unknown caller, even if the caller claims
to be an employee.

* The ability to obtain credit information should be limited to a few key personnel.

* Any terminal devices used to obtain credit information should be placed in a secure location within your facility. Access to
the devices should be difficult for any unauthorized personnel.

* Any device/systems used to access consumer reports should be turned off and locked after normal business hours, when
unattended by key personnel.

* hard copies and electronic files of consumer reports are to be shredded or destroyed, rendered unreadable, when no longer
needed and when it is permitted to do so by applicable regulations.

* Electronic files containing consumer report data and/or information will be completely erased or rendered unreadable when
no longer needed and when destruction is permitted by applicable regulations(s).

“Any person who knowingly or willfully obtains information on a consumer from a consumer reporting agency under
false pretenses shall be fined not more than $5000 or imprisoned not more than a year, or both.” Federal Fair Credit
Reporting Act (15USC1681q)

SAMPLE CONSUMER DISCLOSURE

FIRST CHECK
1500 CORPORATE CIRCLE STE 16
SOUTHLAKE , TX 76092
817-410-8383

CONFIDENTIAL TO BE OPENED BY ADDRESEE ONLY
JONATHAN Q CONSUMER
123 MAIN ST
DALLAS, TX 75201


August 12, 2004


Dear JONATHAN CONSUMER,


We are writing to inform you that in evaluating your application for employment we have received the enclosed consumer report. This notification
is provided because an adverse decision may be based, in whole or part, on this report. We are hereby informing you of certain information pursuant
to the Fair Credit Reporting Act.


The report was prepared pursuant to an authorization signed by you at the time of application. A summary of your rights as a consumer is enclosed.
If you have any questions regarding this report or believe that it may contain incorrect information, you may contact this company and they will
respond to your inquiry. Their mailing address and phone number are listed below:


FIRST CHECK
1500 CORPORATE CIRCLE SUITE 16
SOUTHLAKE, TX 76092


Voice: 817-410-8383 Fax: 817-887-1467


FIRST CHECK only provided us the consumer report and plays no part in the decision to take any action on your employment application. FIRST
CHECK is unable to provide you with specific reasons for any employment related decisions to be made.


Sincerely,
FIRST CHECK


Enc.
Consumer Report
Consumer Rights Notification


FIRST CHECK * 1500 CORPORATE CIRCLE STE 16
SOUTHLAKE , TX 76092
Phone 817-410-8383 * Fax 817-329-9569


Summary of Your Rights Under the Fair Credit Reporting Act


The Federal Fair Credit Reporting Act (FCRA) is designed to promote accuracy, fairness, and privacy of information in the files of every “consumer reporting agency” FIRST CHECK. Most CRAs are credit bureaus that gather and sell information about you – such as if you pay your bills on time or have filed bankruptcy – the creditors, employers, landlords, and other businesses. You can find the complete text of the FCRA, 15 U.S.C. §§1681-1681u, at the Federal Trade Commission’s web site (http://www.ftc.gov). The FCRA gives you specific rights, as outlined below. You may have additional rights under state law. You may contact a state or local consumer protection agency or a state attorney general to learn those rights.

You must be told if information in your file has been used against you. Anyone who uses information from a CRA to take action against you – such as denying an application for credit, insurance, or employment – must tell you, and give you the name, address, and phone number of the CRA that provided the consumer report.

You can find out what is in your file. At your request, a CRA must give you the information in your file, and a list of everyone who has requested it recently. There is no charge for the report is a person has taken action against you because of information supplied by the CRA, if you request the report within 60 days of receiving notice of the action. You also are entitled to one free report every twelve months upon request if you certify that (1) you are unemployed and plan to seek employment within 60 days, (2) you are on welfare, or (3) your report is inaccurate due to fraud. Otherwise, a CRA may charge you up to eight dollars.

You can dispute inaccurate information with the CRA. If you tell a CRA that your file contains inaccurate information, the CRA must investigate the items (usually within 30 days) by presenting to its information source all relevant evidence you submit, unless your dispute is frivolous. The source must review your evidence and report its findings to the CRA. (The source also must advise national CRAs – to which it has provided the data – of any error.) The CRA must give you a written report of the investigation, and a copy of your report if the investigation results in any change. If the CRA’s investigation does not resolve the dispute, you may add a brief statement to your file. The CRA must normally include a summary of your statement in future reports. If an item is deleted or a dispute stat ement is filed, you may ask that anyone who has recently received your report be notified of the change.

Inaccurate information must be corrected or deleted. A CRA must remove or correct inaccurate or unverified information from its files, usually within 30 days after you dispute it. However, the CRA is not required to remove accurate data from your file unless it is outdated (as described below) or cannot be verified. If your dispute results in any change to your report, the CRA cannot reinsert into your file a disputed item unless the information source verifies its accuracy and completeness. In addition, the CRA must give you a written notice telling you it has reinserted the item. The notice must include the name, address and phone number of t he information source

You can dispute inaccurate items with the source of the information. If you tell anyone – such as a creditor who reports to a CRA – that you dispute an item, they may not then report the information to a CRA without including a notice of your dispute. In addition, once you’ve notified the source of the error in writing, it may not continue to report the information if it is, in fact, an error.Outdated information may not be reported. In most cases, a CRA may not report negative information that is more than seven years old: ten years for bankruptcies.

Access to your file is limited. A CRA may provide information about you only to people with a need recognized by the FCRA – usually to consider an application with a creditor, insurer, employer, landlord, or other business.

Your consent is required for reports that are provided to employers, or reports that contain medical information. A CRA may not give out information about you to your employer, or prospective employer, without your written consent. A CRA may not report medical information about you to creditors, insurers, or employers without your permission.


You may choose to exclude your name from CRA lists for unsolicited credit and insurance offers. Creditors and insurers may use file information as the basis for sending you unsolicited offers of credit or insurance. Such offers must include a toll-free phone number for you to call if you want your name and address removed from future lists. If you call, you must be kept off the lists for two years. If
you request, complete, and return the CRA form provided for this purpose, you must be taken off the lists indefinitely.

You may seek damages from violators. If a CRA, a user or (in some cases) a provider of CRA data, violates the FCRA, you may sue them in state or federal court.

The FCRA gives several different federal agencies authority to enforce the FCRA:

FOR QUESTIONS OR CONCERNS REGARDING:
PLEASE CONTACT:

CRAs, creditors and others not listed below Federal Trade Commission
Consumer Response Center – FCRA Washington, DC 20580 * 202-326-3761

National banks, federal branches/agencies of Foreign banks (word “National” or initials
“N.A.” appear in or after bank’s name) Office of the Comptroller of the Currency
Compliance Management, Mail Stop 6-6 Washington, DC 20219 * 800-613-6743

Federal Reserve System member banks (except national banks, and federal branches/agencies of
foreign banks) Federal Reserve Board Division of Consumer & Community Affairs
Washington, DC 20551 * 202-452-3693

Savings associations and federally chartered savings banks (word “Federal” or initials “F. S. B.” appear in federal institution’s name)
Office of Thrift Supervision Consumer Programs Washington, DC 20552 * 800-842-6929

Federal credit unions (words “Federal Credit Union” appear in institution’s name) National Credit Union Administration
1775 Duke Street Alexandria, VA 22314 * 703-518-6360

State-chartered Banks that are not members of the Federal Reserve System Federal Deposit Insurance Corporation
Division of Compliance & Consumer Affairs Washington, DC 20429 * 800-934-FDIC

Air, surface, or rail common carriers regulated by former Civil Aeronautics Board or Interstate Commerce Commission
Department of Transportation Office of Financial Management Washington, DC 20590 * 202-366-1306

Activities subject to the Packers and Stockyards Act, 1921 Department of Agriculture
Office of Deputy Administrator – GIPSA Washington, DC 20250 * 202-720-7051

SAMPLE ADVERSE ACTION NOTICE

FIRST CHECK
1500 CORPORATE CIRCLE STE 16
SOUTHLAKE , TX 76092
817-410-8383

CONFIDENTIAL TO BE OPENED BY ADDRESEE ONLY
JONATHAN Q CONSUMER
123 MAIN ST
DALLAS, TX 75201

August 12, 2004

Dear JONATHAN CONSUMER,

This letter is to inform you that an offer of employment will not be made at this time. This decision was based in whole or in part, on the information provided us in a Consumer Report or Investigative Consumer Report .

The report was prepared pursuant to an authorization signed by you at the time of application. Further at that time you received a copy of your consumer report and a summary of your rights under the Fair Credit Reporting Act. The consumer report was used only for employment purposes and prepared for us by a consumer-reporting agency. Their mailing address and phone number are listed below:
FIRST CHECK

1500 CORPORATE CIRCLE SUITE 16
SOUTHLAKE, TX 76092
Voice: 817-410-8383 Fax: 817-329-9569

FIRST CHECK plays no part in the decision to take any action on your employment application. FIRST CHECK is unable to provide you with specific reason(s) for not extending an offer of employment.
You may, upon providing proper identification, request another free copy of the report and may dispute with the consumer reporting agency the completeness or accuracy of any information in the report within 60 days of receipt of this notice with FIRST CHECK.

Sincerely,

FIRST CHECK
FIRST CHECK * 1500 CORPORATE CIRCLE STE 16
SOUTHLAKE , TX 76092
Phone 817-410-8383 * Fax 817-329-9569

I have read and understand the “FCRA Requirements” notice and “Access Security Requirements” and will take all reasonable measures to enforce them within my facility. I certify that I will use the First Check product information for no other purpose other than what is stated in the Permissible Purpose/Appropriate Use section on this application and for the type of business listed on this
application. I will not sell the report to any consumer directly or indirectly. I understand that if my system is used improperly by company personnel, or if my access codes are made available to any unauthorized personnel due to carelessness on the part of any employee of my company, I may be held responsible for financial losses, fees, or monetary charges that may be incurred and that my
access privilege may be terminated. I (our company) also agree to pay our bill in full each month according to First Check’s payment terms which are Net 30.

By typing my initials on the online First Check Service Agreement, I indicate my acceptance of the terms and conditions of this agreement.

The following is a sample release form that can be used for applicant’s authorization and disclosure:

Applicant Notification / Release of Information

In connection with my application for employment, I understand that investigative inquiries on my background, in accordance with the Fair Credit Reporting Act and all state and federal laws, are to be made on me, including information as to my personal character, abilities, work habits, mode of living, residency, general reputation, performance, experience, and other qualities pertinent to my qualifications for employment, including reasons for termination of past employment.

I understand that prospective employer and/or First Check may make inquiries, including but not limited to my consumer credit history, education, professional licensing, and criminal history and driving history. Furthermore, I understand that prospective employer and/or First Check may request information from various federal, state and other agencies that maintain records concerning my past driving history, credit history, criminal history, military history, civil and other experiences.

I understand that according to the Fair Credit Reporting Act, I am entitled to know if employment is denied because of information obtained by my perspective employer from a Consumer Reporting Agency. Upon written request, I will be informed whether an investigative consumer report was requested and will be given full information as to the nature and the scope of the investigation, as well as the name of the reporting agency or sources of information.

I authorize without reservation, any party (including, but not limited to, employers, law enforcement agencies, state agencies, institutions and private information bureaus or repositories) contacted by prospective employer and/or First Check to furnish any or all of the above mentioned information. In addition, I hereby release First Check and prospective employer from any and all liability for damages arising from the investigation and disclosure of the requested information. I further release and discharge all liability from all companies, agencies, officials, officers, employees and other persons, who, in good faith provide to prospective employer and/or First Check the above mentioned information as requested, in order to successfully complete a background investigation for my application of employment. I will allow a photocopy of this authorization to be as valid as the original.