Legal Collection Document

LEGAL COLLECTION DOCUMENT

This Legal Collection Document (the Agreement) is made as of Effective Date: by and between Client Name: , an entity of type Individual Corporation LLC Partnership, with principal address: (\"Client\"), and Collection Agency Name: , an entity of type Individual Corporation LLC Partnership, with principal address: (\"Collector\").

RECITALS

WHEREAS, Client is the lawful owner or assignee of certain accounts, invoices and receivables listed on the attached schedule and described in Account Schedule/Description below; and

WHEREAS, Collector is duly licensed and experienced in the collection of delinquent accounts and desires to collect such accounts on behalf of Client in accordance with the terms of this Agreement; and

WHEREAS, Client desires to engage Collector and Collector desires to accept such engagement under the terms set forth herein.

NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below: (a) \"Accounts\" means the customer accounts, invoices and receivables to be collected as described in the Account Schedule/Description; (b) \"Proceeds\" means all funds recovered by Collector on Accounts, including cash, checks, electronic transfers and negotiated settlements; and (c) \"Costs\" means reasonable out-of-pocket collection expenses advanced by Collector with Client's prior written approval.

2. ENGAGEMENT

Client hereby engages Collector to act as Client's agent to collect the Accounts identified in the Account Schedule/Description. Collector accepts the engagement and agrees to use commercially reasonable efforts to collect the Accounts in accordance with this Agreement and applicable law.

3. AUTHORITY OF COLLECTOR

Collector is authorized, subject to Client's written policies provided in advance, to (a) contact debtors and third parties as necessary to effect collection; (b) negotiate and enter into settlements on behalf of Client up to the maximum settlement amount specified by Client in writing; (c) endorse and deposit checks and other instruments received in payment of Accounts; and (d) institute litigation or other legal proceedings only with Client's prior written authorization for each matter. Collector shall not compromise or write off any Account except as expressly authorized in writing by Client.

4. FEES, COSTS AND PAYMENT

Collector's compensation shall be on the following basis unless otherwise agreed in writing: a contingent collection fee equal to Commission Rate: % of all gross Proceeds collected, plus recovery of Costs advanced by Collector. Client authorizes Collector to deduct its fees and Costs from Proceeds prior to remittance to Client.

5. REPORTING AND RECORDS

Collector shall maintain complete and accurate records of all collection activities, payments received, disbursements, and correspondence relating to the Accounts. Collector shall provide Client with written reports at intervals of: and within days of request shall provide detailed account documentation and copies of payment instruments.

6. COMPLIANCE WITH LAW

Collector shall conduct all collection activities in compliance with all applicable federal, state and local laws and regulations governing debt collection and consumer protection. Collector shall not engage in unfair, deceptive or abusive practices and shall promptly notify Client of any regulatory or enforcement action relating to the Accounts or Collector's practices.

7. CONFIDENTIALITY

Collector shall maintain the confidentiality of Client information and shall use such information solely for purposes of performing the services under this Agreement. Collector shall not disclose Client information to third parties except as necessary to effectuate collection or as required by law.

8. INDEMNIFICATION

Client shall indemnify, defend and hold Collector harmless from and against any claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of (a) Client's breach of any representation or warranty contained in this Agreement, or (b) the accuracy, enforceability or ownership of the Accounts. Collector shall indemnify Client for claims arising from Collector's intentional misconduct or gross negligence.

9. LIMITATION OF LIABILITY

Except for willful misconduct or gross negligence, neither party shall be liable to the other for consequential, incidental, special or punitive damages arising out of or related to this Agreement. Collector's aggregate liability for direct damages shall not exceed the total fees paid to Collector under this Agreement in the preceding six months.

10. TERM AND TERMINATION

This Agreement shall commence on the Effective Date and shall continue until terminated by either party upon prior written notice to the other party given not less than days. Termination shall not affect Collector's right to collect and retain fees on Proceeds recovered for Accounts accepted prior to termination.

11. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses below by hand, certified mail (return receipt requested) or overnight courier, and shall be deemed given upon receipt.

12. AMENDMENTS; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless it is in writing and signed by both parties. No failure or delay by either party in exercising any right under this Agreement shall operate as a waiver of that right.

13. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

14. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state specified below without regard to its conflicts of laws principles. Governing State:

15. ENTIRE AGREEMENT

This Agreement, together with any schedules and exhibits attached hereto and any written fee letters executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

16. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such provision shall be reformed to the extent possible to carry out the parties' intent, or if reformation is not possible, such provision shall be severed and the remaining provisions shall continue in full force and effect.

17. MISCELLANEOUS

The parties represent and warrant that each has full corporate or legal power and authority to enter into and perform this Agreement. Client warrants that it has the right to assign or authorize collection of the Accounts and that the Accounts are not subject to liens or other encumbrances except as disclosed to Collector in writing.

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