This COLLECTION SERVICES AGREEMENT (the "Agreement") is dated as of the date set forth below by and between ACTION COLLECTION SERVICES INC. ("ACS"), a New York corporation and the undersigned client.

WHEREAS, ACS is a debt collection service that operates in accordance with all applicable federal, state and local laws;

WHEREAS, ACS has been hired by the undersigned for the purpose of rendering collection services.

NOW THEREFORE, in consideration of the premises and of the mutual agreements hereinafter set forth, the parties hereto, intending to be legally bound hereby, agree as follows:

1. Services
   ACS agrees that it will provide its debt collection services in a professional and ethical manner, in accordance with applicable federal, state and local laws. All client portion of monies collected by ACS will be remitted to the undersigned client with the monthly statement.
2. Fee Schedule
   The collection fee schedule is:
   • If ACS does not collect any payment in respect of a debt, there is no fee. ACS does not require up-front fees or retainers.
   • When a claim is delinquent 120 days or less, the fee is 30% of what is collected.
   • When a claim is over 120 days delinquent, the fee is 33% of what is collected. This applies to any claim that is pre-judgment.
   • For claims placed with a judgment, or a judgment is obtained with the assistance of ACS, the fee is 40% of what is collected less fees (i.e. filing/court fees) and other reasonable disbursements.
3. Additional Terms and Conditions
   The undersigned client agrees to the following additional terms and conditions: The client shall
   • promptly report to ACS (i) all payments made to the undersigned by the debtor, (ii) bankruptcy or related notices received, and (iii) any and all communications received from the debtor or any third party in connection with or on behalf of the debtor or related to a claim;
   • instruct the debtor to make all payments directly to ACS;
   • to forward to ACS all payments received directly by the undersigned in respect of any debt placed with ACS (ACS will then remit the amount due client in accordance with the terms of this Agreement);
   • once an account has been placed for collection with ACS, to stop all collection efforts on the account;
   • provide copies of invoices, checks or statements that will verify the debt, if requested by the debtor or ACS as needed;
   • the undersigned authorizes ACS to endorse in the name of the creditor and deposit in its account any and all remittances in any form payable or endorsed to the undersigned;

   The undersigned client has the authority to close a claim at any time provided that ACS is not in the process of negotiating a settlement, pay-off or payment arrangements or the undersigned client or ACS is receiving payment from or on behalf of the debtor. In addition, a claim may not be closed if ACS is working with an attorney to litigate the claim.

   The undersigned client will be contacted in advance for approval of any expenses that may need to be incurred to collect a claim in excess of normal filing/court fees and other reasonable expenses. If ACS prepays any such additional expenses, the undersigned client agrees to promptly reimburse ACS for such expenses upon presentment with substantiating documentation. ACS may forward an account to an attorney if the undersigned client and ACS agree that legal action is desirable in order to collect a claim. In such event, ACS will be entitled to receive its full collection fee from any funds collected.

4. Representations and Warranties

   The undersigned client represents and warrants that it will provide ACS truthful and accurate information regarding the debt including any supporting documentation. The undersigned client acknowledges that ACS will rely exclusively on the information provided to it by the undersigned client without any obligation to conduct additional verification or investigation. The undersigned client agrees to indemnify and hold harmless ACS from any and claims of any nature, including attorney fees and costs of defense, arising out of inaccurate or incomplete information provided by the undersigned client or the negligence or willful misconduct of the undersigned client. The undersigned client agrees to immediately cease all communications with the debtor. The undersigned client further represents and warrants that this claim is not currently being managed by another collection agency and/or attorney.

5. Disputes

   In the event of a dispute and/or disagreement between the undersigned client and ACS, the parties agree to act in good faith to find a mutually satisfactory solution. Any disputes relating to this Agreement and the subject matter hereof shall be interpreted in accordance with New York law.

Thank you for choosing Action Collection Services Inc. We believe that your faith in us will be warranted. We look forward to working with you to lower your receivables and your outstanding debt.