Collection Services Agreement

COLLECTION SERVICES AGREEMENT

This Collection Services Agreement ("Agreement") is entered into as of by and between:

Client Name:

Individual Corporation LLC Partnership Other:

Agent Name:

Individual Corporation LLC Partnership Other:

RECITALS

WHEREAS, Client holds certain accounts receivable and other obligations owed by third parties and desires professional collection services for those accounts; and

WHEREAS, Agent represents that it is experienced in the collection of receivables and maintains personnel, systems and authority to pursue collection of such accounts in accordance with applicable law; and

WHEREAS, the parties desire to set forth the terms and conditions under which Agent will perform collection services for Client.

SCOPE OF WORK

Agent shall use commercially reasonable efforts to locate debtor(s), contact debtor(s), negotiate settlements, and obtain payment by phone, mail, electronic communication, or other lawful means. Agent shall not file suit or commence legal proceedings on behalf of Client except upon prior written authorization for an identified account.

ACCOUNTS, DOCUMENTATION AND PLACEMENT

Client shall provide to Agent, at the time of placement, all documentation reasonably necessary to substantiate the existence, amount and assignability of each account, including but not limited to copies of contracts, invoices, account statements, and proof of deliveries or services. Agent may suspend collection activity for any account for which documentation is incomplete until Client provides sufficient documentation.

AUTHORITY TO ACT

Client authorizes Agent to contact debtors, obtain and verify debtor information, negotiate and accept payments, and endorse and deposit checks or other instruments made payable to Client or Agent in accordance with the collection arrangements identified in this Agreement. Agent shall not remit to itself any funds other than amounts earned under this Agreement without Client's prior authorization.

Settlement authority: Agent is authorized to settle debts at or below % of the outstanding balance for any individual account without prior approval. Settlements in excess of that percentage require Client's prior written approval.

PAYMENT TERMS

Fee structure (select applicable): Agent's compensation shall be as follows:

% of each gross amount actually collected by Agent on Client's behalf.

Billing and remittance: Agent shall remit net proceeds to Client on a basis, accompanied by a report detailing each account, gross collections, fees withheld, and expenses advanced.

Expenses: Client shall reimburse Agent for reasonable out-of-pocket expenses advanced by Agent in connection with collections, including legal fees if litigation is authorized by Client. Such expenses shall be documented and deducted from collections or billed to Client.

Late payments by Client for amounts due to Agent (other than amounts withheld from collections) shall incur interest at % per month or the maximum rate permitted by law, whichever is less.

TERM AND TERMINATION

This Agreement commences on and shall continue until unless earlier terminated as provided below.

Either party may terminate this Agreement upon days' prior written notice to the other party. Termination shall not relieve Client of liability for fees and expenses earned or incurred by Agent prior to termination. Following termination, Agent shall, at Client's direction, either return or deliver to Client all original documentation and records relating to uncollected accounts.

Survival: The rights and obligations of the parties that by their nature are intended to survive termination (including confidentiality, indemnity, payment and record-keeping provisions) shall survive.

CONFIDENTIALITY

Each party shall maintain in confidence all non-public information obtained from the other party in connection with this Agreement, including debtor identities, account balances, and supporting documentation, and shall use such information solely for the performance of obligations under this Agreement. This confidentiality obligation does not apply to information that: (a) is or becomes publicly available through no wrongful act of the receiving party; (b) is independently developed by the receiving party; or (c) must be disclosed by law or regulation, provided that the receiving party provides prompt notice to the disclosing party to allow a reasonable opportunity to seek protective measures.

COMPLIANCE; REPRESENTATIONS

Agent shall perform all collection activities in compliance with applicable federal, state and local laws and regulations. Client represents and warrants that the accounts placed with Agent are valid, that Client is the lawful owner or authorized assignee of each account or has authority to place the account for collection, and that the information provided to Agent is accurate and complete to the best of Client's knowledge.

INDEMNIFICATION; LIMITATION OF LIABILITY

Client shall indemnify, defend and hold harmless Agent, its affiliates and their respective officers, directors and employees from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of Client's breach of this Agreement, failure to provide accurate account documentation, or any claim by a debtor contesting the validity of an account. Agent shall indemnify Client against claims arising from Agent's willful misconduct or gross negligence.

Except for liability arising from willful misconduct or gross negligence, the parties' aggregate liability under this Agreement shall be limited to the total fees actually paid to Agent under this Agreement during the preceding twelve (12) month period.

REPORTING AND RECORDS

Agent shall maintain accurate records of all collection efforts, monies received and disbursements. Client shall have the right to inspect such records upon reasonable notice and during normal business hours.

TAXES

Unless otherwise stated, fees set forth in this Agreement do not include taxes imposed on the parties. The party for whom any tax is assessed shall be responsible for payment of such tax; if Agent is required to collect or pay taxes on behalf of Client, such taxes shall be charged to Client.

GOVERNING LAW; ENTIRE AGREEMENT

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflicts of law.

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral.

NOTICES

MISCELLANEOUS

Assignment: Neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, except that Agent may assign receivables or accounts in the ordinary course of business.

Amendments: Any modification or amendment to this Agreement must be in writing and executed by authorized representatives of both parties.

Sign Now