Debt Collection Debts Owed

DEBT COLLECTION — DEBTS OWED AGREEMENT

Parties

Recitals

WHEREAS, Creditor represents that it is the lawful owner or authorized servicer of certain accounts receivable and debts described in this Agreement (the "Accounts"); and

WHEREAS, Creditor desires to engage Collector to pursue collection of the Accounts on the terms set forth herein; and

WHEREAS, Collector represents that it is duly licensed and authorized to perform debt collection services in jurisdictions where required and will act as an independent contractor and not as an employee of Creditor.

Agreement Effective Date

This Agreement is effective as of (the "Effective Date").

Scope of Work

Collector shall use commercially reasonable efforts, consistent with applicable law and industry practice, to locate debtors, communicate with debtors and third parties, obtain payment and otherwise collect the Accounts listed in the Schedule of Debts attached below. Collector is authorized to take actions reasonably necessary to effect collection, including written and telephonic communications, negotiation of settlements, and execution of payment arrangements, subject to prior written approval from Creditor for any settlement greater than the amount set forth in the Payment Terms.

Schedule of Debts (Accounts)

Creditor shall deliver to Collector a Schedule of Debts identifying each Account to be collected. At a minimum, each Account entry shall include debtor name, account identifier, original amount, outstanding balance and date of default.

Payment Terms

Compensation to Collector shall be as follows: Collector shall receive a contingency commission of % of all gross amounts actually collected and remitted to Creditor, unless a flat fee is agreed in writing.

Creditor shall pay a retainer of (if applicable). Flat fee (if applicable):

Late payments owed to Collector under this Agreement shall accrue a late fee of or interest at % per month, whichever is greater, permitted by law.

Term and Termination

The term of this Agreement shall commence on and shall continue until unless earlier terminated as set forth below.

Either party may terminate this Agreement without cause upon days' prior written notice to the other party. Termination for cause shall be effective immediately upon written notice in the event of a material breach by the other party that remains uncured for thirty (30) days after receipt of written notice of such breach.

Confidentiality

Each party shall maintain as confidential all proprietary, nonpublic information and consumer data disclosed by the other party in connection with this Agreement, including debtor personal data, account numbers, payment histories and documents ("Confidential Information"). Collector shall use Confidential Information solely for the purposes of collection under this Agreement and shall not disclose such information except (a) to perform its obligations under this Agreement, (b) as required by law, or (c) to a third-party vendor subject to confidentiality obligations no less protective than those herein. Confidentiality obligations shall survive termination of this Agreement for a period of three (3) years, or longer if required by applicable law.

Representations, Warranties and Authorization

Creditor represents and warrants that: (a) it is the lawful owner or authorized servicer of each Account listed; (b) there are no pending bankruptcy proceedings in which the Account is completely discharged prior to assignment; and (c) all information provided to Collector is true, accurate and complete to the best of Creditor's knowledge. Creditor authorizes Collector to act as its agent for collection purposes and to endorse, deposit or negotiate payments received on Creditor's behalf.

Indemnification and Liability

Each party shall indemnify, defend and hold harmless the other party from and against any losses, claims, liabilities or expenses arising out of that party's breach of this Agreement or negligent or willful misconduct. Collector's liability for any claim arising under this Agreement shall be limited to direct damages and shall not exceed the sums actually paid to Collector under this Agreement in the preceding twelve (12) months. In no event shall either party be liable for consequential, incidental or punitive damages except for a party's willful misconduct or gross negligence.

Notices

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to conflicts of law principles. Venue for any dispute arising out of this Agreement shall lie in the state and federal courts located within that state.

Entire Agreement

This Agreement, together with any Schedules and written amendments executed by both parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, understandings and representations, whether written or oral.

Miscellaneous Provisions

No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party granting the waiver. Neither party may assign this Agreement without the prior written consent of the other, except that Collector may assign its rights to a successor entity in connection with a sale of substantially all of its assets or a corporate reorganization.

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