Driver Source Overview 2015

DRIVERSOURCE“WE DRIVE YOUR BUSINESS”

DriverSource, Inc. Business Summary

Founded in 2001 Proud Member of the Women’s Business Enterprise National Council DriverSource is a Full Service “Transportation Human Resources” Solution Provider SPECIALIZING in Commercial

Driver Leasing and Recruiting Services Consulting Services to the Transportation Industry Department of Transportation (DOT) Compliance and Education Services 100% owned and controlled for Uniform Quality Assurance

For more information, please visit our website: www.driversource.net

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Summary of Key Fundamentals

DriverSource provides THE solutions to our client’s transportation workforce issues. Recruiting to our client’s specifications and providing only the highest quality.

DriverSource services the FINEST companies in the Transportation, Distribution & Third Party Logistics Industries.

DriverSource is an established, growing Company that strives to serve our customers NATIONALLY.

Our most important mission is keeping your freight moving and your customers satisfied.

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Why Partner with DriverSource?

You are in business to deliver service on time, consistently and at a reasonable cost. DriverSource exists to assist you with meeting these business requirements. DriverSource has built its reputation with the nation’s finest transportation and logistics organizations because of our unique ability to help transportation organizations execute on their commitments. We do this by:

Providing qualified, high-quality CDL drivers and other transportation/distribution professionals;

Helping you interpret and manage federal regulatory requirements;

Designing and delivering safety and compliance training solutions, their federal compliance requirements and their training objectives.

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Service Summary We make complex, costly and burdensome tasks simple, cost-effective and

convenient by providing: Transportation Workforce Solutions—We help organizations address the complex

and burdensome challenges of locating, screening, hiring and managing the highest-quality full-time and part-time Commercial Drivers Licensed (CDL) drivers and other highly skilled logistics professionals. We can customize our solutions according to your organization’s needs. Whether you require personnel for long-term/dedicated, short-term, seasonal, project or temporary needs, DriverSource has the expertise to help you.

D.O.T. Compliance, Safety, Training and Consulting Solutions—We are a leading compliance and safety program provider for companies, nationwide.

We assist companies in understanding and managing the myriad federal regulations incumbent upon motor carriers of all sizes. Examples of our work include providing executive summary information, consulting and training on D.O.T, and risk management issues as they relate your transportation operations.

We customize our services to fit your needs.We are always searching for NEW and INNOVATIVE solutions and services

for your existing and future challenges. 6

Service SummaryCommercial Driver & Employee Leasing & Recruiting ServicesPersonalized and dedicated logistics staffing is our trademark. Commercial driver leasing has never been easier with our “6 Level” service option program. Our services provide you with the “Choice Solution” to decide what type of leasing / recruiting program would best fit your operation and specific needs.

SERVICE OPTION 1 - DEDICATED LOGISTICS LEASING PROGRAMThis leasing plan is customized for the critical and time-sensitive operations of “Just in Time” or other high priority logistics needs. “Guaranteed” driver leasing with no-hassle and 110% satisfaction.

SERVICE OPTION 2 – “LEASE TO HIRE” LEASING PROGRAMRecruiting, interviewing and hiring commercial truck drivers is costly and time-consuming. This leasing plan removes all of the usual costs and headaches associated with hiring CDL drivers and allows you to concentrate on your core responsibility-your customer.

SERVICE OPTION 3 - CASUAL/TEMPORARY EMERGENCY COVERAGEWith this plan, you instantly have the comfort and options to cover your employees sick days, vacation days, off-time or seasonal peaks where you need additional personnel to service your customers. Our 24-hour assessable operations staff will provide you with staffing options in your most desperate hour. Do not go without!

SERVICE OPTION 4 - Employee Lease, Payroll and Group Benefits ProgramSimilar to the DLLP program but on a more economic scale. Permanent employee or driver leasing can be extremely beneficial to an operation. No worries over recruiting, DOT compliance, random programs, annual reviews, human resources, payroll, health insurance, and the list goes on. In addition, the savings on workers compensation, medical benefits and others could make this plan very attractive to your bottom line!

SERVICE OPTION 5 - E-BASED RECRUITING SERVICES & ADVERTISING The most comprehensive and effective on-line recruiting service available. Directed toward the difficult national recruiting, OTR and Owner Operator positions, www.mydriversource.com can increase your recruiting efficiency two-fold. Combining the experienced recruiting staff of DriverSource and the internet capability of reaching thousands of potential drivers, A MUST for ALL that recruit drivers!

SERVICE OPTION 6 – SSP Placement- RECRUITING SERVICES for Logistics ProfessionalsManagement and executive level positions can be the most difficult and critical positions you need within your organization. SSP is a division of DriverSource that specializes in the recruitment and direct placement of these types of employees. Our recruiters will work closely with you to provide you qualified and professional candidates for you to interview and hire directly. Inquire now!

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Competitive Advantages DriverSource provides clients with distinctive benefits and delivers them in a unique

way: Credibility & Reputation. Our service and quality assurance protocols pass the scrutiny of the most selective

organizations in transportation. A growing number of Fortune 500 corporations and renowned motor carriers, throughout the United States, retain our services. Our experience in transportation workforce and compliance management issues is unparalleled in our industry.

Compliance: Complying with Federal regulations and keeping pace with regulatory changes can be profoundly difficult. DriverSource stands unique in its ability to alert clients to pending regulatory changes and to provide cost-effective compliance solutions.

Geographic Coverage: Many transportation companies leverage their vendor relationships through consolidation to gain maximum efficiencies, where possible. DriverSource answers this goal by providing a regional service network in markets throughout the United States, providing you more access to qualified transportation solutions and professionals and reducing your multi-vendor management costs and increasing your quality control.

Consistency: Through a unified management structure, DriverSource delivers service across our network according to strict service standards. Our internal compliance and service audits touch every office quarterly. This means irrespective of location, the same high service standards apply.

Professionals. Ultimately, this is the difference in any organization. Our organization is comprised of professionals with expertise in logistics, human resource management, federal regulations, training, management consulting, recruiting/staffing and of course, the finest drivers. The collective talent of our outstanding team is unparalleled in our industry and has helped us earn our position among the finest transportation staffing firms operating in the United States.

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Recruiting, interviewing and hiring commercial truck drivers is costly and time-consuming. Alleviate these time constraints and burden to focus on your core competencies.

DriverSource will recruit and qualify drivers with the minimum qualifications as specified by Customer if MORE stringent than our own. Recruiting will consist of:

Competitive Advantages

AdvertisementInterviewingEmployment VerificationComplete DOT FilesBackground ChecksDAC Reports (MVR & Employment)MVR UpdatesPre-Employment Drug ScreeningRandom, Reasonable Suspicion & Post Accident Drug & Alcohol TestingWorkman’s Compensation LiabilityTerminations & Garnishments

Employee Bonding EEO ClaimsUnemployment ClaimsAdministrative Costs (Payroll, COBRA, etc.)Federal Payroll Summaries (W-2’s, 940 Reports, etc.)Employer Taxes (FICA, FUTA, SUTA)Employee Benefits (50% company paid, employee only)401K Matching PlanVacation Pay (billable upon occurrence)Sick Pay (optional)On-Site Supervision (optional)NO Pass-Through Billings

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Minimum Driver Hiring Requirements*DRIVERSOURCE will comply with all specific customer minimum driver

requirements that are not mentioned below.

In order for a driver to qualify for employment with DRIVERSOURCE, the following minimum requirements are established:

A minimum of 1 year verifiable driving experience with equipment equal to or greater than 26,001 pounds GVW and in equipment compatible with intended operation.

A minimum of 10 years previous employment history. (Last 3+ years verifiable) No previous history of more than 1 suspension, revocation, or cancellation of driving privilege as a

result of moving traffic violations or vehicular accidents within the past 5 years. No Felony Convictions within the previous 7 years. Once

No history of conviction or forfeiture of bond for the following offenses: Operating a vehicle under the influence of alcohol within the past 5 years or at any time while

operating a commercial motor vehicle. No record of DUI, OUI or Reckless Driving Citations in the past 5 years. Operating under the influence of drugs. Leaving the scene of an accident. Use of a motor vehicle to commit a felony. No combination of 3 or more moving violations, convictions, or citations in the past 36 months. Not more than 1 preventable accident in the past 36 months.

ALL APPLICANTS must meet all requirements in compliance with: Section 391 of the FMCSR. Successfully pass a DOT pre-employment drug screen. Have successfully completed and obtained a current Medical Card from a DOT physical. No evidence of more than one currently held drivers license. Must meet the applicable requirements of the commercial driver license.

Compliance: Minimum Standards

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Compliance: Driver Qualification

DOT:“The FMCSRs apply to, and impose responsibilities on, motor carriers and their drivers. The FHWA does not regulate driver leasing companies or temporary help service companies.”

Contractual Designation as Agent Obligation to Properly Screen/Qualify Access to Records Upon Request Within 48 Hours

DOT Guidance:“…this may be accomplished by a motor carrier designating a driver

leasing service as its agent to perform the qualification procedures in accordance with parts 383 and 391...”

Driver Qualification Drug and Alcohol Testing Hours of Service Record Keeping

Labor Service Agreement: “…for the purposes of compliance with the Federal Motor Carrier Safety Regulations (49 C.F.R. Parts 382-399), DRIVERSOURCE will act as the agent of Customer to perform driver qualification and controlled substance testing functions as required by 49 C.F.R. Parts 382 and 391…”

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Compliance: Drug & Alcohol Testing

DOT: “The driver must be in the pool of each employer for which the driver works. An employer must make the other program, by

contract,…, the employer's own program. This would entail…having records forwarded to the employer's principal place of business on 2 days notice, and being notified of and acting upon positive test results”.

Program Managed By Allied Substance Abuse Professionals Meeting Parts 40 & 382

Contractual Co-Ownership Access to Records Notification of Positive Results

Pre-Employment Testing Exception

Labor Service Agreement:“…such agency includes shared ownership of DRIVERSOURCE random drug and alcohol testing program for CDL holders. As a co-owner of the program, Customer will be notified of any positive drug test results of personnel utilized by Customer…”

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QUALITY CONTROL PROCESS

Driver Applies For Employment

Pre-Employment Screens Conducted• Previous Employer Inquiries• Motor Vehicle Record • Drug Test

Qualification Checklist Completed

Driver Meets:• Company Standards• Customer Standards• Federal Standards

Accountability TakenStaff members sign to agree that

the driver has been properly qualified and to take full, personal

accountability for the driver’s qualifications.

Driver DispatchedPayroll System Control

Employment Action Form details entered into payroll system. Lack of procedure prevents payment.

Corporate Audits

Regional Audits

Branch Audits

Payroll vs. Hours of Service

Records of Drug Test Results

Branch Compliance Procedures

Driver Files In Each Branch

Review of Driver Files By Safety Management

Driver Files

Accountability TakenStaff members sign to agree that

the driver has been properly qualified and to take full, personal

accountability for the driver’s qualifications.

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Workers’ CompensationDept of Labor: “Workers’ Compensation laws are designed to ensure that

employees who are injured or disabled on the job are provided with fixed monetary awards, eliminating the need for litigation.”

DriverSource covers all employees under its WC insurance and provides certification to Customers

DriverSource manages all claims and return to work programs

DriverSource tracks and investigates injuries for the purpose of loss prevention

Labor Service Agreement: “The Personnel provided by DRIVERSOURCE hereunder are and will be at all times acting and performing the Services to Customer as Personnel of DRIVERSOURCE. Personnel shall not be deemed to be employees of Customer for any purpose whatsoever “

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Results that Matter “Thanks again for supplying us with such quality personnel.”

-General Manager, Transportation Service Company “DriverSource has always been our best option…DriverSource is the only agency we use for

drivers and are very satisfied.”-Manager, Distribution Company

“…from personal experience, the service you get from DriverSource is second to none…”-Manager, National Third Party Logistics Provider

“It is with pleasure that I recommend [DriverSource] services to any organization…”-HR Manager, Regional Cartage Company

“I’ve been dealing with a lot of various vendors for years and can truly say that [DriverSource’s] performance is outstanding among them all.”

-Division Manager, National Distribution Company “The quality of drivers as well as your usual attention to detail is exactly the excellence we

have come to expect from DriverSource.”-President, National Foods Distributor

**References available upon request**

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Customer Topics for Discussion

Specific Driver Selection Criteria Specific Duty Requirements Timeline Pay Rates/Service Program Other Customer Related Items

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