and Innovative Marketing Techniques Inc., Dba MySmartLease.Com (hereinafter referred to as "IMT"). All accounts turned over to IMT by Creditor for purposes of collection are subject to the following provisions:
1. SETUP & COMMISSION:
IMT shall charge an upfront collections fee of $99 AND retain a 50% commission, contingent upon collection, on any amount of the original debt collected. IMT shall also retain as commission, contingent upon collection, all interest earned on the original debt. IMT shall retain its commission whether the sums are collected from the original debtor or from a third party, including, but not limited to, insurance carriers, guarantors and co-signors, and whether received by Creditor directly or by IMT.
2. IMT'S OBLIGATIONS:
IMT will service all accounts professionally and promptly, using those ethical and legal methods it deems reasonable. IMT will comply with all local, state and federal laws and regulations. In no event shall IMT pursue collection in an unreasonably aggressive or untoward manner. IMT shall notify Creditor of any settlement offers received by IMT and no settlement offer shall be accepted by IMT without Creditor's consent. IMT may contract additional service providers as deemed necessary to facilitate the collection efforts.
3. CREDITOR'S OBLIGATIONS:
Upon placement of a debt, Creditor will terminate ALL communication of every kind with debtor. Creditor shall immediately notify IMT of any and all direct or indirect communication from debtor or his/her representatives, including, but not limited to, telephone calls, voice messages, emails, texts, payments, letters, settlement offers, bankruptcy notices, threats, disputes and counter claims. Creditor shall also immediately forward to IMT any and all communications from debtor. In the event Creditor fails to terminate communication with debtor and/or fails to notify IMT of communications from debtor, including the failure to forward documents or recordings of communications, Creditor shall be obligated to reimburse IMT for all expenses incurred as a result of that failure to comply.
Creditor warrants that it has full title to all debts placed with IMT. Creditor warrants the validity, legality, amount, and authenticity of all claims and accounts placed with IMT. If Creditor has any question regarding these warranties, Creditor should consult legal counsel before turning the debt over to IMT for collection. Upon request by IMT, Creditor agrees to forward to IMT within 5 business days all documentation necessary to prove full title, validity, legality, amount and authenticity of all debts, claims and accounts placed with IMT for collection. Any debt, claim, or account placed with IMT that is determined to have previously been paid by the debtor or is otherwise not as warranted will obligate Creditor to pay to IMT all costs actually incurred as well as 10% of the debt, claim, or account as an administrative, clerical and initiation fee. IMT will not be held liable for the inability to collect any debt, claim, or account placed with IMT, and IMT makes no representation, warranty or guarantee of any specific results. Creditor shall indemnify and hold harmless IMT (and its affiliates, officers, agents, partners, and employees) from any and all damages, liabilities, costs, and expenses (including, but not limited to, costs and attorneys' fees) incurred by IMT as a result of any claim related to the claim, debt or account placed for collection with IMT.
5. DEBTOR PAYMENTS:
Creditor authorizes IMT to endorse into IMT's trust account negotiable instruments payable to the order of Creditor and received toward payment of any debt placed with IMT. Any payment received by Creditor directly as payment on a debt placed with IMT shall immediately be forwarded to IMT for accounting (a photocopy of the original instrument should be retained by Creditor).
6. ADVANCED COSTS:
IMT will advance normal fees and costs necessary in its discretion. IMT will be reimbursed for advanced costs from Creditor's account if, and only if, monies are collected towards payment of the debt. Client understands that IMT may at its discretion forward a case or claim to outside legal counsel or collection network to assist in recovery and hereby grants IMT permission to do so. Creditor further consents to reimburse IMT for any additional costs incurred as a result of a case or claim being forwarded to outside counsel.
On or about the fifteenth day of each month, IMT will remit to Creditor all net proceeds due with an accounting of collection results for the previous calendar month. In the event that the accounting shows a balance due IMT from Creditor, Creditor shall pay said balance to IMT within 15 days.
Creditor may only cancel or withdraw a debt, claim or account placed with IMT for collection in writing by fax at 909-494-7417, and any commission then due and payable to IMT must be paid in full before the claim will be deemed withdrawn. If collection of any debt, claim, or account placed with IMT is cancelled or withdrawn by Creditor while payments are being made by debtor, Creditor agrees to pay to IMT the full anticipated commission due to IMT per paragraph 1. Creditor will also owe to IMT as commission 10% of the principal balance of the original debt, claim or account for administrative, clerical and initiation expense if there has been activity on the account within the 60 days preceding cancellation or withdrawal or if the account is in litigation or insolvency proceedings.
9. ATTORNEYS' FEES:
In any action or proceeding arising out of or related to the collection of any debt, claim, or account placed with IMT for collection pursuant to this agreement, the prevailing party shall be entitled to its reasonable costs and attorneys' fees in addition to any other relief to which it may be entitled.
10. SEVERABILITY and WAIVER:
If any provision of this agreement is deemed to be invalid or unenforceable, all other provisions remain valid and enforceable. Waiver by IMT of any of its rights under this agreement shall not be construed as a consent to, or a waiver of, any subsequent breach of this agreement.
This agreement, and all rights and obligations arising out of it, shall be construed in accordance with the laws of the State of California and any action or proceeding arising out of or related to the collection of any debt, claim or account placed with IMT for collection pursuant to this agreement shall take place within the State of California.
12. PARAGRAPH HEADINGS:
The paragraph headings used in this agreement are for convenience of reference only and are not intended to affect the meaning or construction of any of the provisions of this agreement.
13. ENTIRE AGREEMENT:
The parties hereto agree that no promise, inducement, understanding, representation or agreement not set forth in this agreement has been made between or among the parties, and that this agreement completely expresses and embodies the entire agreement between IMT and Creditor. This agreement may be modified only by a writing signed by each party hereto.