THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

NCO Group, Inc. (NCOG)

4/17/2006 Proxy Information

Compensation Committee Interlocks and Insider Participation

In 2005, the Compensation Committee consisted of Messrs. Dunkelberg, Naples, Siegel and Wise. No person who served as a member of the Compensation Committee during 2005 was a current or former officer or employee of the Company or, except as described below, engaged in certain transactions with the Company required to be disclosed by regulations of the SEC. Additionally, there were no compensation committee “interlocks” during 2005, which generally means that no executive officer of the Company served as a director or member of the compensation committee of another entity, one of whose executive officers served as a director or member of the Compensation Committee of the Company.

Use of Airplane

During 2005, Michael J. Barrist’s compensation included the personal use by Mr. Barrist of 25 hours per year of an aircraft partly owned by the Company. Mr. Barrist reimbursed the Company $100,288 for his personal use of the aircraft in excess of 25 hours in 2005 based on the Company’s actual operating costs plus the hourly cost equivalent for the monthly management fee, interest and depreciation.

Transactions with PSC

Eric S. Siegel is a director of PSC Info Group (“PSC”), a provider of outsourced mail services and related document management services. Mr. Siegel also owns less than 1% of the outstanding common stock of PSC and provides nonoperational consulting services to PSC. The Company paid PSC a total of $31.5 million for producing and mailing collection letters in 2005, which the Company believes was comparable to or less than other mail outsourcing companies would charge for similar volumes of business. Mr. Siegel has not been, and will not be, involved in the negotiation or the administration of the Company’s contract with PSC.

Employment of Related Persons

The Company employs members of the immediate family of some of its directors and executive officers in various positions described below.

Nicholas Fazio was employed by the Company in 2005 as Vice President of Programming. Mr. Fazio's employment with the Company terminated on June 18, 2005. Mr. Fazio received salary totaling $75,844 in 2005. Mr. Fazio also was entitled to use a company automobile in 2005. Mr. Fazio is the brother-in-law of Michael J. Barrist, the Chairman of the Board, President and Chief Executive Officer of the Company. The Company believes that the compensation paid to Mr. Fazio was comparable with compensation paid to other employees with similar levels of responsibility and years of service.

Brett Leckerman is employed by the Company as a general manager of one of the Company’s collection units. Mr. Brett Leckerman received salary and bonus totaling $118,311 in 2005. Mr. Brett Leckerman also received an automobile allowance. Mr. Brett Leckerman is the son of Steven Leckerman, an Executive Vice President and the Chief Operating Officer – Accounts Receivable Management, North America of the Company. The Company believes that the compensation paid to Mr. Brett Leckerman is comparable with compensation paid to other employees with similar levels of responsibility and years of service.

4/15/2005 Proxy Information

Mr. Piola has been providing services to NCO Group, Inc. (NCO) on a part-time basis since retiring as Executive Vice President in January 2000.

USE OF AIRPLANE

Prior to March 2004, the Company used an airplane that was partly owned by Michael J. Barrist. The Company reimbursed Mr. Barrist for the use of the plane based on a per-hour rate. The per-hour rate consisted of actual operating costs plus the hourly cost equivalent for the monthly management fee, interest and depreciation. The Company paid costs for its use of the airplane equal to $209,000 during 2004.

In February 2004, the Company took an assignment of rights held by Mr. Barrist under a deposit agreement and a related maintenance agreement to purchase an interest in a new airplane. The Company believed that the assignment of the deposit agreement and maintenance agreement allowed it to purchase the interest in the new airplane, and receive maintenance, at prices less than it would otherwise have been able to obtain if it entered into new agreements with the manufacturer. Upon purchasing the interest in the new airplane in March 2004, the prior arrangement with Mr. Barrist concerning the Company's use of his airplane was terminated. During 2004, Mr. Barrist reimbursed the Company $119,700 for his personal use of the aircraft. Amounts reimbursable by Mr. Barrist were based on the Company's actual operating costs plus the hourly cost equivalent for the monthly management fee, interest and depreciation. In 2005, as part of his compensation, Mr. Barrist will be able to use, for personal use, 25 hours per year of the aircraft. Mr. Barrist will continue to reimburse the Company for any personal use of the aircraft in excess of 25 hours per year.

TRANSACTIONS WITH PSC

Eric S. Siegel is a director of PSC Info Group ("PSC"), a provider of outsourced mail services and related document management services. Mr. Siegel also owns less than 1% of the outstanding common stock of PSC and provides nonoperational consulting services to PSC. The Company paid PSC a total of $30.3 million for producing and mailing collection letters in 2004, which the Company believes was comparable to or less than other mail outsourcing companies would charge for similar volumes of business. Mr. Siegel has not been, and will not be involved in the negotiation or the administration of the Company's contract with PSC.

4/19/2004 Proxy Information

Eric S. Siegel is a director of PSC Info Group ("PSC"), a provider of outsourced mail services and related document management services. Mr. Siegel also owns approximately 1% of the outstanding common stock of PSC and provides nonoperational consulting services to PSC. The Company paid PSC a total of $32.3 million for producing and mailing collection letters in 2003, which the Company believes was comparable to or less than other mail outsourcing companies would charge for similar volumes of business. Mr. Siegel has not been, and will not be involved in the negotiation or the administration of the Company's contract with PSC.

The Company used an airplane that was partly owned by Michael J. Barrist. During 2001 and most of 2002, the Company paid the total monthly management fee associated with the airplane and its share of out-of-pocket costs to a third-party management company for its use of the airplane. The third-party management company was not affiliated with Mr. Barrist. Effective November 2002, the Company changed its arrangement with Mr. Barrist. During a portion of 2002 and during 2003, the Company reimbursed Mr. Barrist for the use of the plane based on a per-hour rate. The per-hour rate consisted of actual operating costs plus the hourly cost equivalent for the monthly management fee, interest and depreciation. The Company paid costs for its use of the airplane equal to $363,000, $478,000 and $719,000 for the years ended December 31, 2001, 2002 and 2003, respectively.

In February 2004, the Company took an assignment of rights held by Mr. Barrist under a deposit agreement and a related maintenance agreement to purchase an interest in a new airplane. The Company believed that the assignment of the deposit agreement and maintenance agreement allowed it to purchase the interest in the new airplane, and receive maintenance, at prices less than it would otherwise have been able to obtain if it entered into new agreements with the manufacturer. Upon purchasing the interest in the new airplane in March 2004, the prior arrangement with Mr. Barrist concerning the Company's use of his airplane was terminated.

4/17/2003 Proxy Information

Marc L. Wise serves as a Senior Vice President of the Company and was paid annual compensation (salary and bonus) of $175,000 for services rendered in 2002, received options to purchase 7,500 shares of Common Stock at an exercise price of $15.98, and received other compensation of $2,861 which included the Company matching contribution under the 401(k) Profit Sharing Plan and premiums for disability and life insurance policies paid by the Company. Marc L. Wise is the son of Allen F. Wise, a director of the Company and a member of the Compensation Committee.

The Company uses an airplane that is partly owned by Michael J. Barrist. During 2000, 2001 and most of 2002, the Company paid the total monthly management fee associated with the airplane and its share of out-of-pocket costs to a third-party management company for its use of the airplane. The third-party management company is not affiliated with Mr. Barrist. Effective November 2002, the Company changed its arrangement with Mr. Barrist. The Company now reimburses Mr. Barrist for the use of the plane based on a per-hour rate. The per-hour rate consists of actual operating costs plus the hourly cost equivalent for the monthly management fee, depreciation and interest. The Company paid costs of $368,000, $363,000 and $478,000 for the years ended December 31, 2000, 2001 and 2002, respectively.

Eric S. Siegel is a director of PSC Info Group ("PSC"), a provider of outsourced mail services. Mr. Siegel also owns approximately 1% of the outstanding common stock of PSC and provides nonoperational consulting services to PSC. The Company paid PSC a total of $27.5 million for producing and mailing collection letters in 2002, which the Company believes is comparable to or less than other mail outsourcing companies would charge for similar volumes of business. Mr. Siegel has not been, and will not be involved in the negotiation or the administration of the Company's contract with PSC.