"THE BRAND NAME IN COLLECTIONS"

TERMS AND CONDITIONS

Without the payment of any advance fee, but in consideration of the listing and services to be performed, the accounts listed are submitted and assigned by the party of the firm whose signature appears on the accompanying listing form and are accepted by SECURITY RECOVERY GROUP INC. (hereinafter referred to as SRG) on the following terms and conditions.

1) The creditor warrants the names and amounts to be correct and legally due to the best of his/her knowledge and authorizes SRG to collect, settle, adjust and forward these amounts at SRG’s discretion. Additional accounts submitted will be subject to the same terms and conditions.

2) Legal action will not be commenced without authorization in writing from the creditor, who must first advance all the necessary documents and court costs. No commission is charged on collection of the disbursed court costs which will be returned to the creditor from the first collections before deductions for any commission to the agency. The creditor agrees to reimburse SRG for the solicitor’s fee in all cases where a dispute is entered on suit, and in the case where a judgement summons or other process after judgement becomes necessary in the opinion of SRG. Where a claim cannot be supported sufficiently to obtain a judgement, or where client fails to attend at trial and the matter is dismissed, then SRG may charge a reasonable closing fee to compensate for the work and expense involved up to that point.

3) Commission is to be paid forthwith to SRG on all monies paid direct to the client, to SRG or by contra account. Merchandise accepted for return and credit is considered the same as payment.

4) If the creditor makes any direct arrangements with the debtor or purports to revoke the authority of SRG or attempts collection on its own accounts or through another Agency, Agent or Solicitor, there shall immediately become due and payable to SRG, an amount equal to the charges that would have been payable had SRG successfully collected the entire amount.

5) Notice in writing must be given before withdrawing accounts from SRG’s office, and no account is to be withdrawn before 180 days have elapsed from assignment or last payment, which ever comes later.

6) SRG also agrees to return all accounts on which no payment or arrangement to pay has been made after the prescribed time period in conjunction with the written request.

7) SRG under this agreement has Power of Attorney to endorse all cheques, postal notes and money orders received by SRG made payable to the creditor for credit to the accounts listed.

8) SRG assumes no responsibility in the event that an account listed for collection becomes subject to an act or statute of limitations.

9) Unless specifically set out in a schedule attached hereto, the rates charged for the collection of accounts and other services shall be based upon the posted rates of SRG which are subject to change from time to time. SRG shall not be bound by this agreement until it is approved and accepted by an Officer of the Corporation.