National Recovery Systems, Inc.

How the Placement Process Works

We begin by gathering all relevant information on the debtor to determine whether the account is one we can realistically assist with. If the debtor's phone numbers are disconnected, the company is out of business, has filed bankruptcy, or has simply formed a new company [Newco], we generally will not be able to help and will decline the placement.

If we believe we can assist, we issue a Legal Agent Agreement [see below]. We do not require contracts or signatures of any kind. We work on an account-by-account basis and are paid only when you are paid.

We will spend as long as necessary pursuing a resolution. In most cases, within 30 to 60 days, we have a good understanding of the debtor's intentions and ability to pay based on our experience developing debtor profiles and resolving commercial debt matters.

Once placed, we become the legal agent for the account and assume responsibility for all collection communications. Having multiple companies attempting to collect the same debt is not only counterproductive, but in certain circumstances may create legal issues.

If we are unable to resolve the account, we will advise whether the matter appears suitable for litigation and will provide all of our findings to your attorney. We are not an attorney referral company. We believe it is important to distinguish ourselves from firms that provide only minimal collection efforts before referring accounts to attorneys, increasing costs and often resulting in judgments that have little practical value.

In most cases, we have the debtor remit payment directly to you, and we then invoice our fee separately. In certain situations, funds may be collected into an escrow account and subsequently remitted to the client.

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^{Sample Legal Agent Agreement:}

National Recovery Systems
4685 Happy Valley Rd #231
Flintstone, GA 30725
Phone: (800) 710-0661

ATTN: XXXXXXX
Company: XXXXXXX
RE: Account Placement

Hi,

This letter serves as Agent Acknowledgment and Legal Agent Agreement for the account(s) you have recently placed with our firm for collection.

Please be advised that we have initiated recovery efforts. It is not uncommon for debtors to attempt to contact you directly to bypass or disrupt the collection process. If this occurs, it is critical that you inform them the matter is no longer in your hands and immediately direct them back to National Recovery Systems. Such contact is generally intended to interfere with recovery and compromise the relationship between client and agency.

Additionally, please note the following:

• Under the Fair Debt Collection Practices Act (FDCPA), it is unlawful for more than one entity to attempt collection on the same debt simultaneously.
• Any payments received must be reported to us promptly.
• Please suspend all future billing statements to the debtor(s). All payments and communications should now be directed through our office. Any recovered funds will be forwarded directly to you.

We appreciate your trust in National Recovery Systems and stand ready to assist further if needed.

Debtor(s)                            xxx%            Amount

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