AMERICAN CAPITAL ENTERPRISES 1 - 2003

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INSURANCE NOl' 1NOOK M),Y PRO0~I~O CLEkK OF COUNI~IL DATE: A-2003-145 CONSULTANT AGREEMENT THIS AGREEMENT, made and entered into this /6¢ day of Lq~/~, ,2003 by and between American Capital Enterprises, Inc., a California corporation (hereinafter "Consultant"), and the City of Santa Aha, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"). RECITALS A. The City desires to retain a consultant having special skill and knowledge in the field of debt collection. B. Consultant represents that Consultant is able and willing to provide such services to the City. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES A. Consultant shall provide collection services in connection with overdue miscellaneous accounts receivable billings assigned by City. In performing said services, Consultant agrees it will: 1. Retain commission on all monies collected on assigned accounts, whether paid to City or Consultant, at the following rates: (i) Standard accounts 23% (ii) Accounts requiring legal action 35%. 2. Retain any interest accruing from the date of assignnaent, if allowed by law. 3. Obtain prior approval from City before initiating any legal action on an account. 4. Advance all legal costs in connection with approved legal action against any debtor. 5. Retain from first monies collected on a legal account, its advanced costs. 6. Remit to City all monies, less commission, by the 15th day of the month following collection. 7. Provide City with monthly reports reflecting the status of each account. 8. Mail first notice to debtor within 72 hours of receipt of placement. 9. Allow City to cancel an assigned account at any time for a mistake or an error in assignment.