<PAGE>





                                NCO GROUP, INC.
                                ---------------

                      EXECUTIVE SALARY CONTINUATION PLAN
                      ----------------------------------

                          (Effective January 1, 1998)
 





<PAGE>



                                NCO GROUP, INC.
                                ---------------

                      EXECUTIVE SALARY CONTINUATION PLAN
                      ----------------------------------

                          (Effective January 1, 1998)

                               TABLE OF CONTENTS
                               -----------------
<TABLE>
<CAPTION>

ARTICLE           SUBJECT MATTER                                                                                Page
-------           --------------                                                                                ----

<S>               <C>                                                                                            <C>
I                 DEFINITIONS.....................................................................................1

II                BENEFITS........................................................................................2

III               APPLICATION FOR BENEFITS AND CLAIM PROCEDURES...................................................3

IV                PLAN ADMINISTRATION.............................................................................5

V                 ALLOCATION AND DELEGATION OF AUTHORITY AND RESPONSIBILITY.......................................7

VI                AMENDMENT AND TERMINATION OF THE PLAN...........................................................8

VII               MISCELLANEOUS PROVISIONS........................................................................8

EXHIBIT I
</TABLE>



<PAGE>

                                NCO GROUP, INC.
                                ---------------

                      EXECUTIVE SALARY CONTINUATION PLAN
                      ----------------------------------

                          (Effective January 1, 1998)
                          ---------------------------


                                   ARTICLE I
                                   ---------
                                  DEFINITIONS
                                  -----------

         Sec. 1.01 "Active Employment" shall mean a period of time during
which the Participant is rendering services to a Participating Employer or
Affiliate.

         Sec. 1.02 "Affiliate" shall mean any entity in which any
Participating Employer has any direct or indirect interest.

         Sec. 1.03 "Beneficiary" shall mean the persons or entities designated
by the Participant in writing, on a form prescribed by the Plan Administrator,
to be his/her Beneficiaries under the Plan. As to any Participant who dies and
who has not designated a Beneficiary (or who is not survived by any such
designated Beneficiary), the following classes of takers, each class to take
to the exclusion of all subsequent classes, with all members of that class to
share equally:

                  (a) The Participant's surviving spouse,

                  (b) The Participant's lineal descendants (including adopted
         persons and stepchildren) per stirpes,

                  (c) The Participant's surviving parents, and

                  (d) The Participant's estate.

         Sec. 1.04  "Board" shall mean the board of directors of the Employer.

         Sec. 1.05  "Effective Date" shall mean January 1, 1998.

         Sec. 1.06 "Eligible Class Employee" shall mean each Employee of a
Participating Employer who in the sole discretion of the Board, or its duly
appointed committee, is determined to be a member of a select group of
management or highly compensated Employees.

         Sec. 1.07 "Employee" shall mean each person in the employ of the
Participating Employer.

         Sec. 1.08 "Employer" shall mean NCO Group, Inc., a Pennsylvania
corporation, and any successor entity that adopts this Plan. The term
"Participating Employer" shall mean the Employer and any other entity which,
with the consent of the Board, adopts this Plan.



<PAGE>

         Sec. 1.09 "Internal Revenue Code" or "Code" shall mean the Internal
Revenue Code of 1986, as the same may be amended from time to time.

         Sec. 1.10 "Participant" shall mean any Employee who has been or who
is an Eligible Class Employee and who has been selected by the Board, a duly
authorized committee of the Board or President of the Employer to participate
in this Plan. The list of Participants shall be indicated on Exhibit I to the
Plan, as revised from time to time.

         Sec. 1.11 "Participation Agreement" shall mean the agreement entered
into by the Participating Employer and the Participant that provides the
specific benefit payable to the Participant's Beneficiary, and other terms
relevant thereto, with respect to this Plan.

         Sec. 1.12 "Plan" shall mean the NCO Group, Inc. Executive Salary
Continuation Plan, as set forth herein, and as the same may be amended from
time to time hereafter.

         Sec. 1.13 "Plan Administrator" shall mean the person or committee
named as such pursuant to the provisions of this Plan, or, in the absence of
any such appointment, the Employer.


                                  ARTICLE II
                                  ----------
                                 PLAN BENEFITS
                                 -------------


         Sec. 2.01 Death Benefit

                  (a) General. The Beneficiary of any Participant who dies
         while in Active Employment shall be provided with a salary
         continuation benefit commencing on the sixtieth (60th) day following
         the Participant's death, in accordance with the terms and conditions
         set forth in the Participant's Participation Agreement. The total
         death benefit payable under this Plan shall be payable to the
         Beneficiary over a period of time as set forth in the Participant's
         Participation Agreement.

                  (b) Limitation. In the event the Participant's death shall
         be the result of suicide or should the Participant be found to have
         committed fraud in completion of any insurance application or other
         documentation relied upon by the Plan Administrator or Employer, then
         no death benefits shall be payable to the Participant nor to any
         Beneficiary. For the purposes of this subsection, the Plan
         Administrator shall determine if the Participant's death was the
         result of suicide or if the Participant committed fraud, with
         reference to the relevant facts and circumstances available at the
         time of the Participant's death. If subsequent to the Plan
         Administrator's determination, additional facts are made available,
         the Plan Administrator, in its sole discretion, may reverse its
         determination and the Company shall be entitled to full reimbursement
         of any benefits paid.

         Sec. 2.02 Other Termination of Active Employment. Any Participant
whose Active Employment is terminated for any reason other than his/her death
shall cease participation in this 

                                     -2-
<PAGE>

Plan and shall forfeit his/her benefits under this Plan and his/her
Participation Agreement shall become null and void.

         Sec. 2.03 Benefit Offset. In the sole discretion of the Plan
Administrator, benefits or rights of any Participant may be reduced by any
outstanding debt owed by the Participant to a Participating Employer or an
Affiliate, including but not limited to any loan to the Participant, advanced
vacation pay or salary or expense advances. In addition, the Participant's
benefit or rights under this Plan shall be reduced by any supplemental
retirement plan benefit payable by the Employer, Participating Employer or
Affiliate upon the Participant's retirement, death or other termination of
service.


                                  ARTICLE III
                                  -----------
                APPLICATION FOR BENEFITS AND CLAIMS PROCEDURES
                ----------------------------------------------

         Sec. 3.01 Application for Benefits. Each Participant and/or
Beneficiary who believes that he/she is eligible for benefits under this Plan
may apply for such benefits by completing and filing with the Plan
Administrator an application for benefits on a form supplied by the Plan
Administrator. Before the date on which benefit payments commence, each such
application must be supported by such information and data as the Plan
Administrator deems relevant and appropriate. Evidence of age, marital status
(and, in the appropriate instances, health, death or disability), and location
and residence shall be required of all applicants for benefits. Written notice
of the disposition of a claim shall be furnished to the applicant within 90
days after the application for benefits is filed with the Plan Administrator,
unless special circumstances require an extension of time for processing the
claim. If such an extension of time for processing is required, written notice
of the extension shall be furnished to the claimant prior to the termination
of the initial 90-day period. In no event shall such extension exceed a period
of 90 days from the end of such initial period. The extension notice shall
indicate the special circumstances requiring an extension of time and the date
by which the Plan Administrator expects to render the final decision.

         Sec. 3.02 Appeals of Denied Claims for Benefits. In the event that
any claim for benefits is denied in whole or in part, the Participant or
Beneficiary whose claim has been so denied shall be notified of such denial in
writing by the Plan Administrator. The notice advising of the denial shall
specify the reason or reasons for denial, make specific reference to pertinent
Plan provisions, shall describe any additional material or information
necessary for the claimant to perfect the claim (explaining why such material
or information is needed), and shall advise the Participant or Beneficiary, as
the case may be, of the procedure for the appeal of such denial. All appeals
shall be made by the following procedure:

                  (a) The Participant or Beneficiary whose claim has been
         denied shall file with the Plan Administrator a notice of desire to
         appeal the denial. Such notice shall be filed within sixty (60) days
         of notification by the Plan Administrator of claim denial, shall be
         made in writing, and shall set forth all of the facts upon which the
         appeal is based. Appeals not timely filed shall be barred.

                                     -3-
<PAGE>

                  (b) The Plan Administrator, within thirty (30) days of
         receipt of the Participant's or Beneficiary's notice of appeal, shall
         establish a hearing date on which the Participant or Beneficiary (or
         his/her attorney or other authorized representative) may make an oral
         presentation to the "Named Appeals Fiduciary" (as appointed pursuant
         to Section 4.03) in support of his/her appeal. The Participant or
         Beneficiary (or representative) shall have the right to submit
         written or oral evidence and argument in support of his/her claim at
         such hearing. The Participant or Beneficiary shall be given not less
         than ten (10) days' notice of the date set for the hearing. At the
         hearing (or prior thereto upon five (5) business days' written notice
         to the Plan Administrator), the Participant or Beneficiary (or
         representative) shall have an opportunity to review all documents
         which are pertinent to the claim at issue.

                  (c) The Named Appeals Fiduciary shall consider the merits of
         the claimant's written and oral presentations, the merits of any
         facts or evidence in support of the denial of benefits, and such
         other facts and circumstances as the Named Appeals Fiduciary shall
         deem relevant. If the claimant elects not to make an oral
         presentation, such election shall not be deemed adverse to his/her
         interest, and the Named Appeals Fiduciary shall proceed as set forth
         below as though an oral presentation of the contents of the
         claimant's written presentation had been made.

                  (d) The Named Appeals Fiduciary shall render a determination
         within 60 days of the receipt of the appeal (unless there has been an
         extension of no more than 60 days due to special circumstances,
         provided that the delay and the special circumstances occasioning it
         are communicated to the claimant in writing within the first 60-day
         period). That determination shall be accompanied by a written
         statement presented in a manner calculated to be understood by the
         Participant or Beneficiary and shall include specific reasons for the
         determination and specific references to the pertinent Plan
         provisions on which the determination is based. The determination so
         rendered shall be binding upon all parties.

         Sec. 3.03 Appointment of the Named Appeals Fiduciary. The Named
Appeals Fiduciary shall be the person or persons named as such by the Board,
or, if no such person or persons be named, then the person or persons named by
the Plan Administrator as the Named Appeals Fiduciary. Named Appeals
Fiduciaries may at any time be removed by the Board, and any Named Appeals
Fiduciary named by the Plan Administrator may be removed by the Plan
Administrator. All such removals may be with or without cause and shall be
effective on the date stated in the notice of removal. The Named Appeals
Fiduciary, shall have no authority, responsibility, or liability with respect
to any matter other than the proper discharge of the functions of the Named
Appeals Fiduciary as set forth herein unless appointed to other fiduciary
responsibilities.

                                      -4-

<PAGE>

                                  ARTICLE IV
                                  ----------
                              PLAN ADMINISTRATION
                              -------------------

         Sec. 4.01 Appointment and Tenure. The Plan Administrator shall
consist of a committee of one (1) or more persons who shall serve at the
pleasure of the Board. Any committee member may resign by delivering his/her
written resignation to the Employer. Vacancies arising by the death,
resignation or removal of a committee member shall be filled by the Board. If
the Board fails to act, and in any event, until the Board so acts, the
remaining members of the committee may appoint an interim committee member to
fill any vacancy occurring on the committee. If no person has been appointed
to the committee, or if no person remains on the committee, the Employer shall
be deemed to be the Plan Administrator.

         Sec. 4.02 Meetings; Majority Rule. Any and all acts of the Plan
Administrator taken at a meeting shall be by a majority of all members of the
committee. The Plan Administrator may act by vote taken in a meeting (at which
a majority of members shall constitute a quorum) if all members of the
committee have been given at least ten (10) days' written notice of such
meeting or have waived notice. The Plan Administrator may also act by
unanimous consent in writing without the formality of convening a meeting.

         Sec. 4.03 Delegation. The Plan Administrator, by written majority
decision, may delegate to each or any one of its members, or to its Secretary,
authority to sign any documents on its behalf, or to perform ministerial acts,
but no person to whom such authority is delegated shall perform any act
involving the exercise of any discretion without first obtaining the
concurrence of a majority of the members of the committee, even though he/she
alone may sign any document required by third parties.

         The Plan Administrator shall elect one of its members to serve as
Chairperson. The Chairperson shall preside at all meetings of the committee or
shall delegate such responsibility to another committee member. The committee
shall elect one person to serve as Secretary to the committee. All third
parties may rely on any communication signed by the Secretary, acting as such,
as an official communication from the Plan Administrator.

         Sec. 4.04 Authority and Responsibility of the Plan Administrator. 
 The Plan Administrator shall have the following duties and responsibilities:

                  (a) to maintain and preserve records relating to Plan
         Participants, former Participants, and their Beneficiaries;

                  (b) to prepare and furnish to Participants all information
         required under Federal law or the provisions of this Plan;

                  (c) to prepare and file or publish with the Secretary of
         Labor, the Secretary of the Treasury, the Securities and Exchange
         Commission, their delegates and all other appropriate government
         officials all reports and other information required under law to be
         so filed or published;

                                      -5-

<PAGE>

         
                  (d) to construe the provisions of the Plan, to correct
         defects therein and to supply omissions thereto;

                  (e) to engage assistants and professional advisers;

                  (f) to provide procedures for determination of claims for 
         benefits; and

                  (g) to retain records on elections and waivers by
         Participants, their spouses and their Beneficiaries, as further set
         forth herein.

         Sec. 4.05 Reporting and Disclosure. The Plan Administrator shall keep
all individual and group records relating to Plan Participants, and
Beneficiaries, and all other records necessary for the proper operation of the
Plan. Such records shall be made available to the Employer and to each
Participant and Beneficiary for examination during business hours except that
a Participant or Beneficiary shall examine only such records as pertain
exclusively to the examining Participant or Beneficiary and those records and
documents relating to all Participants generally. The Plan Administrator shall
prepare and shall file as required by law or regulation all reports, forms,
documents and other items required by the Code, and every other relevant
statute, each as amended, and all regulations thereunder. This provision shall
not be construed as imposing upon the Plan Administrator the responsibility or
authority for the preparation, preservation, publication or filing of any
document required to be prepared, preserved or filed by any other party to
whom such responsibilities are delegated by law or by this Plan.

         Sec. 4.06 Construction of the Plan. The Plan Administrator shall take
such steps as are considered necessary and appropriate to remedy any inequity
that results from incorrect information received or communicated in good faith
or as the consequence of an administrative error. The Plan Administrator shall
have the sole and absolute discretion to interpret the Plan and shall resolve
all questions arising in the administration, interpretation and application of
the Plan. It shall endeavor to act, whether by general rules or by particular
decisions, so as not to discriminate in favor of, or against, any person and
so as to treat all persons in similar circumstances uniformly. The Plan
Administrator shall correct any defect, reconcile any inconsistency, or supply
any omission with respect to this Plan. All such corrections, reconciliations,
interpretations and completions of Plan provisions shall be final and binding
upon the parties.

         Sec. 4.07 Engagement of Assistants and Advisers; Plan Expenses. The
Plan Administrator shall have the right to hire such professional assistants
and consultants as it, in its sole discretion, deems necessary or advisable,
including, but not limited to:

         (a)      accountants;

         (b)      actuaries;

         (c)      attorneys;

         (d)      consultants;

                                     -6-
<PAGE>

         (e)      clerical and office personnel; and

         (f)      medical practitioners.

The expenses incurred by the Plan Administrator in connection with the
operation of the Plan, including, but not limited to, the expenses incurred by
reason of the engagement of professional assistants and consultants, shall be
expenses of the Employer.

         Sec. 4.08 Compensation of the Plan Administrator. The Plan
Administrator shall serve without compensation for its services as such, but
all expenses of the Plan Administrator shall be paid or reimbursed by the
Employer.

         Sec. 4.09 Indemnification of the Plan Administrator. Each member of
the committee constituting the Plan Administrator shall be indemnified by the
Employer against costs, expenses and liabilities (other than amounts paid in
settlement to which the Employer does not consent) reasonably incurred by
him/her in connection with any action to which he/she may be a party by reason
of his/her service as Plan Administrator except in relation to matters as to
which he/she shall be adjudged in such action to be personally liable for
gross negligence or willful misconduct in the performance of his/her duties.
The foregoing right to indemnification shall be in addition to such other
rights as the committee member may enjoy as a matter of law or by reason of
insurance coverage of any kind, but shall not extend to costs, expenses and/or
liabilities otherwise covered by insurance or that would be so covered by any
insurance then in force if such insurance contained a waiver of subrogation.
Rights granted hereunder shall be in addition to and not in lieu of any right
to indemnification to which the committee member may be entitled pursuant to
the articles of incorporation or by-laws of the Employer.


                                   ARTICLE V
                                   ---------
                         ALLOCATION AND DELEGATION OF
                         ----------------------------
                         AUTHORITY AND RESPONSIBILITY
                         ----------------------------

         Sec. 5.01 Authority and Responsibilities of Employer. The Employer,
as Plan sponsor, shall have the following (and only the following) authority
and responsibility:

                  (a) to appoint members of the Plan Administrator and shall
         serve as Plan Administrator in the absence of an appointed Plan
         Administrator;

                  (b) to communicate such information to the Plan
         Administrator as needed for proper performance of its duties; and


                  (c) to provide channels and mechanisms through which the
         Plan Administrator can communicate with Participants and their
         Beneficiaries.

In addition, the Employer shall perform such duties as are imposed by law or
by regulation.

                                     -7-
<PAGE>

         Sec. 5.02 Authority and Responsibilities of the Plan Administrator.
The Plan Administrator shall have the authority and responsibilities imposed
by Article IV hereof. With respect to the said authority and responsibility,
the Plan Administrator shall have no authority and responsibility other than
as granted in this Plan, or as imposed by law.


                                  ARTICLE VI
                                  ----------
                     AMENDMENT AND TERMINATION OF THE PLAN
                     -------------------------------------

         Sec. 6.01 Amendment.  The provisions of this Plan may be amended at 
any time and from time to time by the Employer.

         Sec. 6.02 Plan Termination.

                  (a) Right Reserved. The Employer reserves the right to
         completely or partially terminate this Plan and the benefits provided
         hereunder.

                  (b) Effect on Retired Persons, Etc. Termination of the Plan
         shall have no effect upon payment of benefits to Beneficiaries and
         former Participants' estates, whose benefit payments commenced prior
         to Plan termination.


                                  ARTICLE VII
                                  -----------
                           MISCELLANEOUS PROVISIONS
                           ------------------------

         Sec. 7.01 Unsecured Creditor. The right of a Participant or his/her
Beneficiary to any benefits under this Plan shall be solely those of an
unsecured creditor of the Participating Employer. Any insurance policy,
annuity or other assets acquired by or held by the Employer or Participating
Employer in connection with the liabilities assumed by it pursuant to the Plan
shall not be deemed to be held under any trust for the benefit of the
Participant or his/her Beneficiary or to be security for the performance of
the obligations of the Employer or Participating Employer, but shall be, and
remain a general, unpledged and unrestricted asset of the Employer or
Participating Employer.

         Sec. 7.02 Nonalienation of Benefits. None of the payments, benefits
or rights of any Participant or Beneficiary shall be subject to any claim of
any creditor of such person and, in particular, to the fullest extent
permitted by law, all such payments, benefits and rights shall be free from
attachment, garnishment, trustee's process, or any other legal or equitable
process available to any creditor of such Participant or Beneficiary. No
Participant or Beneficiary shall have the right to alienate, anticipate,
commute, pledge, encumber or assign any of the benefits or payments which
he/she may expect to receive, contingently or otherwise, under this Plan,
except the right to designate a Beneficiary or Beneficiaries as appropriate.
Compliance with the provisions and conditions of a domestic relations order
approved by the Plan Administrator shall not be considered a violation of this
provision.

                                     -8-
<PAGE>

         Sec. 7.03 No Contract of Employment. Neither the establishment of the
Plan, nor any modification thereof, nor the creation of any fund, trust or
account, nor the payment of any benefits shall be construed as giving any
Participant, Eligible Class Employee, or any person whomsoever, the right to
be retained in the service of the Participating Employer, and all Participants
and other Eligible Class Employees shall remain subject to discharge to the
same extent as if the Plan had never been adopted.

         Sec. 7.04 Severability of Provisions. If any provision of this Plan
shall be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provisions hereof, and this Plan shall be construed
and enforced as if such provisions had not been included.

         Sec. 7.05 Unfunded Plan. The Employer and Participating Employers
shall not be required to establish any segregated account, trust, escrow,
reserve or other arrangement to pay the benefits hereunder. The Employer and
each Participating Employer reserves the absolute right, as its sole
discretion, to either fund the obligations undertaken by it under this Plan or
to refrain from funding the same and to determine the extent, nature and
method of such funding. If the Employer or any Participating Employer elects
to fund this Plan, in whole or in part, through the purchase of life
insurance, the Employer or such Participating Employer reserves the absolute
right, in its sole discretion, to terminate such funding at any time, in whole
or in part. At no time shall any Participant or Beneficiary be deemed to have
any lien nor right, title or interest in or to any life insurance policy or to
any assets of the Employer or any Participating Employer.

         Sec. 7.06 Heirs, Assigns and Personal Representatives. This Plan
shall be binding upon the heirs, executors, administrators, successors and
assigns of the parties, including each Participant and Beneficiary, present
and future, and all persons for whose benefit there exists any approved
domestic relations order with respect to any Participant (except that no
successor to the Employer shall be considered a Plan sponsor unless that
successor adopts this Plan).

         Sec. 7.07 Payments to Minors, Etc. Any benefit payable to or for the
benefit of a minor, an incompetent person or other person incapable of
receipting therefor shall be deemed paid when paid to such person's guardian
or to the party providing or reasonably appearing to provide for the care of
such person, and such payment shall fully discharge the Plan Administrator,
the Employer and all other parties with respect thereto.

         Sec. 7.08 Lost Payees. A benefit shall be deemed forfeited if the
Plan Administrator is unable to locate a Participant or Beneficiary to whom
payment is due, provided, however, that such benefit shall be reinstated,
without interest, if a claim is made by the Participant or Beneficiary for the
forfeited benefit.

         Sec. 7.09 Reliance on Data and Consents. The Employer, the Plan
Administrator and all other persons or entities associated with the operation
of the Plan, the management of its assets, and the provision of benefits
thereunder, may reasonably rely on the truth, accuracy and completeness of all
data provided by the Participant and his/her Beneficiaries, including, without
limitation, data with respect to age, health and marital status. Furthermore,
the Employer, the Participating Employer, the Plan Administrator and all
others associated with the operation of the Plan may 

                                     -9-
<PAGE>

reasonably rely on all consents, elections and designations filed with the
Plan by any Participant, any Beneficiary of any Participant, or the
representatives of such persons without duty to inquire into the genuineness
of any such consent, election or designation. None of the aforementioned
persons or entities associated with the operation of the Plan shall have any
duty to inquire into any such data, and all may rely on such data being
current to the date of reference, it being the duty of the Participants and
Beneficiaries to advise the appropriate parties of any change in such data.

         Sec. 7.10 Headings and Captions. The headings and captions herein are
provided for reference and convenience only, shall not be considered part of
the Plan, and shall not be employed in the construction of the Plan.

         Sec. 7.11 Gender and Number. Except where otherwise clearly indicated
by context, the masculine and the neuter shall include the feminine and the
neuter, the singular shall include the plural, and vice-versa.

         Sec. 7.12 Controlling Law. This Plan shall be construed and enforced
according to the laws of the Commonwealth of Pennsylvania to the extent not
preempted by Federal law, which shall otherwise control.

         IN WITNESS WHEREOF, and as evidence of its adoption of this Plan, the
Employer has caused the same to be executed this day      of      , 1998.


ATTEST:                                             NCO GROUP, INC.


                                                    By:
----------------------------                           ------------------------
Secretary                                                  President

                                     -10-

<PAGE>


                                   EXHIBIT I
                                   ---------


Participants                                             Date of Participation
------------                                             ---------------------