Evergreen Financial Collection Services Agreement Addendum

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5. EFS shall indemnify, defend and save harmless Kittitas County and its officers, agents and employees against and from any loss, damage, costs, charge, expense, liability, claims, demands or Judgments of any kind or nature whatsoever, whether to person or property arising wholly or partially out of any act, action, neglect, omissions or default on the part of EFS, its agents, sub -contractors and/or employees, except only such injury or damage shall have been caused by or resulted from the sole negligence of Kittitas County, its officers, agents or employees. In the event that any lawsuit or cause of action should be brought against Kittitas County due to an act, action, neglect, omission or default on the part of EFS, its agents, sub- contractors and/or employees, EFS shall assume the defense thereof and pay any and all costs, charges, attorney fees and other expenses and any and all Judgments that may be incurred or obtained against Kittitas County with regard to an assigned account. Client will be responsible for claims by any third party based on the direct actions of client, its employees or agents, and agrees to indemnify EFS for the same. 6. EFS shall keep in force its license and bond, and shall otherwise be in compliance with all State and Federal laws governing collection agencies. 7. EFS will add interest to accounts placed for collection at the rate allowable by law. Interest will be retained by EFS. 8. Termination: This agreement may be terminated by either party on a 30 day notice in writing to the other, or otherwise as they may mutually agree, except those accounts assigned as follows: A. All accounts on which payments are in process, or on which a schedule of payments has been arranged; B. All accounts upon which legal action has been referred, a suit has been brought, or a Judgment has been obtained, such account shall remain with EFS until it is clearly established they have become inactive by reason of debtor's continued failure to pay, and; Any retained accounts shall be clearly identified, together with the arrangements made. 9. In October, 2008, this agency adopted a formal identity Theft Policy to clarify its previous informal policies and to comply with 16 C.F.R. Part 681 (`Red Flag Rules") to the extent that the provisions of such are applicable to the accounts assigned to this agency. 10. EFS agrees that it shall not use any unfair or unprofessional collection practices nor violate any regulations established by federal and/or state legislation or other applicable regulatory agency. 11. In the event that any litigation should arise concerning the construction or interpretation of any of the terms of this Agreement, the venue of such action of litigation shall be in the Superior Court of the State of Washington in and for the County of Kittitas. This Agreement shall be governed by the law of the State of Washington. 12. The services of EFS shall be furnished by EFS as an independent Contractor and nothing herein contained shall be construed to create a relationship of employer-employee or master - servant, but all payments made hereunder and all services performed shall be made and performed pursuant to this Agreement by EFS as an independent Contractor. Page 13