Evergreen Professional Recoveries Inc 11/12/2009

4. Interest. Upon assignment of an account interest shall accrue on all unpaid amounts on the account at a rate of twelve percent (12%) per annum ("Interest"). The Interest shall be added to the account and collected by Service Provider. Service Provider shall remit any Interest it collects to City in accordance with Secfon 9 of this Agreement. 5. Required Notice to Debtor. Service Provider will provide the consumer debtor a thirty -day notice on behalf of City prior to assigning the accounts for collections. The notice provides the notice required for the purpose of adding collection fees pursuant to state law. Service Provider will provide all expenses for the production and mailing of this notice. The account is in City's control during this thirty -day period; payments may be made directly to City and accounts may be withdrawn by City at any time during this thirty -day period. 6. Communications. City agrees to cooperate with Service Provider in the recovery of assigned accounts and will discontinue any direct effort to contact or collect from the debtors on assigned accounts. City will direct all communications on collection accounts to Service Provider and will make no agreement for payment arrangements or settlement on accounts assigned to Service Provider. Service Provider recognizes that some debtors may initiate communication with City after assignment, and it is expected that City will direct all communication from consumers to Service Provider. Payments received by City on assigned accounts will be either forwarded to Service Provider or reported to Service Provider upon receipt. 7. Identifying Account Number. City shall provide an identifying account number if available and establish the date of delinquency for each debt assigned to allow agency to comply with provisions of the Fair Credit Reporting Act. For debts without assigned account numbers, Service Provider will assign an identifying number to the account. 8. Withdrawal of Account. Within the period of assignment, City may withdraw an account if it is determined by City and Service Provider that the account was placed in error for reason of: determination that the wrong individual has been identified as the responsible party; the underlying facts on an account are determined to be erroneous, continuation of efforts to collect may create potential liability to City. In the event that an account is withdrawn after collection activity has begun where payments are being made, or where legal action has been taken, City shall pay Service Provider its commission at the normal rate and reimburse Service Provider its legal costs advanced, including attorney fees, where appropriate. 9. Compensation/Collection. A Service Provider shall pay all costs of collecting an assigned account, including without limitation all legal fees. Service provider may assess these costs against the debtor as permitted by law. B. Pursuant to the authority of RCW 3.02 and RCW 19.16 500, Service Provider may collect from the debtor on an assigned account a collection fee in the amount of twenty percent (20%) of the principal balance of the assigned account ("Collection Fee"). Service Provider may assess a penalty of $25 for Not Sufficient Funds ("NSF") checks per NSF incident. Unless expressly stated otherwise in this Agreement, the Collection Fee and any NSF penalty are Service Provider's sole compensation for collection of an assigned account. Collection of the Collection Fee and any NSF penalty is the sole responsibility of the Service Provider. C For each ass gned account, Service Provider shall use reasonable efforts to deliver to City an amount equal to one hundred percent (100%) of the principal balance of the account at the time the account was assigned to Service Provider (such amount, "Initial Principal Balance"), plus all accrued Interest. Page 2