Saving Businesses One Client at a Time

w w w . w a t e r f o r d n o w . c o m

Stephen T. StalterVice President

570-291-0025 x 101

Professional Debt Resolution – Third Party Intervention

Professional debt resolution is a process where The Waterford Groupintervenes between a client and its creditors. A debt workout program is structured based on what the client can pay, not what creditors demand.

Based on our client’s financial situation a debt workout program typically lasts from 9 to 15 months and calls for our client to allocate a small amount of what they actually owe to the program. We set this up once the client is on board based on conversations and analysis we do with them one-on-one.

Communication is the back-bone of the intervention. A third party line of communication is immediately established with the creditors in an open and honest atmosphere. A non-aggressive, non-confrontational approach is utilized to begin to calm the tensions between both parties and to implement a satisfactory solution.

The Waterford Group establishes a creditor moratorium of 30-45 days from the time of initial engagement in which the debt workout plan is formally introduced to the creditors and then implemented on behalf of the client.

What We Do – “You were an answer to our prayer” Waterford Client

� We reduce your debts by up to 70% of what you owe saving you huge amounts of money and obtaining full release of liability eventually making your business debt free.

� We allow you to focus on your business without the constant distractions and “firefighting” creditors.

� We reduce or eliminate your legal costs while creating the time you need to balance your budget and manage your cash flow .

� We show you how to protect your assets and create a creditor proof fortress for the future.

� We help you keep your doors open and avoid bankruptcy .

� The Waterford Group has successfully assisted thous ands of clients nationwide.

Targeted Debt Areas - We work on nearly all debts!

� Unsecured Vendor Accounts

� General Suppliers

� Equipment Suppliers

� Lenders (Unsecured & Secured)

� Outside Service Providers

Including Temps or Outsource

� Lawsuits, Judgments, Liens,

Collection Accounts

� Foreclosures

� ……and more!

We specialize in working for

clients encumbered by the strain

of overdue debts and the burden

these debts place upon the

business.

By overdue debts we are referring to

payables owed to creditors which

have not been paid in at least 90

days due to a lack of cash flow each

month including →

Our Typical Client - “Looking back, how we got here was really

unavoidable.” Waterford Prospect

Sales are down or have been down and/or expenses ar e up. Your sales are generating insufficient revenue to cover expenses. This may or may not have been for an extended period of time but it has created a “catch-up” situation which has gotten out of control. Why has this happened?

� The loss of a key employee or shareholder � The loss of a key client � An unforeseen increase in expenses � Unforeseen competition � Economic factors � Natural or unnatural disaster

…and many other reasons including:

Receivables issues: Has a client failed to pay for services or are you being paid very slowly?

Lack of capital: Have you grown too fast and/or is your business undercapitalized?

Our Client’s Typical Symptoms - “Dealing with this is ruining

our business.” Waterford Prospect

Denying a problem exists can put you out of busines s and so can dealing with it on your own . Our program could be the answer. Are you dealing with or experiencing any of the following symptoms:

� Collection calls: Collection calls can or have become excessive - the creditors, collection agencies and attorneys are monopolizing the business and are causing stress.

� Time away from the business focus: Have you had to devote either your time or an employees time away from the business to deal with creditors, COD, lawsuits, etc?

� Lawsuits: Lawsuits and judgments can drain scarce financial resources and threaten the existence of your company unless you have a solid plan to address them.

� More month than money: We never have enough income at the end of the month to deal with this debt.

The Benefits – “We bet your business plan doesn’t have a section titled

Dealing with Creditors … The Waterford Group does!”

You start to focus on your business immediately . Once we intervene we stop the large majority of the collection calls (85% on average) and we negotiate for a 30-45 day creditor moratorium for you where little or no collection activity takes place. We direct all creditor inquiries to our office and away from yours. We act as your accounts payable department.

At a time when your cash flow is extremely limited and money is at a premium we make every $1 you allocate to the debt workout worth up to as much as $3. Where can you get a return on your investment like that?

GUARANTEED results! We guarantee results by a matter of contract in writing. We only get paid if we perform for you. Our entire compensation structure is based upon performance and we don’t get paid unless we save you money.

How It Works – An easy process structured around your cash flow

You allocate small amounts of money to your debts and w work with your creditors to settle the debts one by one on your terms and not based upon their demands. We take control and we give you control.

We get you the time you need to deal with the probl em. The large majority of creditors will work with us and you throughout process. Most will work with us for up to 15 months.

We show you how to protect your assets and create a creditor proof fortress for the future.

As you fund your monthly commitment we begin settling your debts creditor by creditor. Our average negotiated debt settlement with creditors nationwide is between $.35 and $.45 on the dollar including our fees.

.

Performance Based Fees – We only get paid if we save you money

� We earn our fees based on the amount of money we save you. This insures that The Waterford Team works tirelessly to save you the greatest amount possible.

� This is in stark contrast to most law firms, bankruptcy specialists and consultants who charge a fee and/or an hourly rate with no guaranteed results.

� Our Fee - Example : You owe Creditor A $21,000. We settle this debt for $7,000. We have saved you $14,000. Our fee is 24% of the savings therefore we earn $3,360 for a total settlement of $$10,360 and a net savings to you of $10,640.

� OUR GUARANTEE - If we can’t settle with a creditor for less than 50% of the confirmed balance owed, we earn no fees.

Actual Settlements – “Your results are phenomenal” - Waterford Client

Type of Amount Owed Settlement Cli entCreditor to Creditor Amount Savings

Temporary Staffing * $1,800,000 $800,000 $1,000,000

Bank Loan ** $250,000 $85,000 $165,000

Material Supplier *** $128,000 $39,000 $89,000

Equipment Lease **** $98,000 $36,000 $62,000

* Creditor continued to do business with the client under a new contract** Loan was secured and all collateral was released as part of the settlement*** Material Supplier agreed to 12 payments over a 1 year period of time**** Title to the equipment went to the client

Client Workout Examples – Unparalleled Results!

Client’s # of Total Actual Funding Debt Industry Creditors Debt Savings % Workout

Health Care 64 $1.4M $864,000 4.5% 10 months

Manufacturer 22 $276,000 $190,000 3.7% 12 months

Physician 15 $150,000 $96,000 5.0% 9 months

Contractor 85 $880,000 $554,000 3.7% 12 months

Tech Firm 45 $1.8 M $1.08M 4.0% 11 months

Distributor 35 $500,000 $321,700 5.0% 9 months

Non-Profit 12 $195,000 $112,000 2.5% 18 months

*Results do vary but these are typical expectations for a client who funds the debt workout at the 4% - 5% amount per month for the entire debt workout.

*Actual savings includes TWG-USA fees

What our Clients Have to Say -

“We would like to express our sincere gratitude and appreciation to you and your company for assisting our Firm with a debt resolution plan which helped our company through a difficult period of restructuring.

Your professionalism and dedication to our account was key in resolving our debt quickly, and also in preventing unnecessary legal and/or collection fees from vendors. All paperwork and payoffs to vendors were completed in a very timely and acceptable manner to all parties involved.”

Wood Design & Manufacturing Firm, Illinois.

“Through your professional and timely efforts, we were able to continue doing business as usual. Your negotiating with our vendors and creditors remedied our debts without damaging our credit. All settlements left everyone satisfied. It has been a pleasure working with you.”

LTL Freight Transportation Firm, NY

“Your company was an answer to prayer. We thought bankruptcy was the only way to save our company. It was against everything I believe in… you were able to stop the calls for payments and satisfy our vendors. You have been a real life saver in a time of need and we would recommend you to anyone.”

Towing & Wrecking Firm, PA

“The Waterford Group has taken the edge off the collections and has been able work with my creditors even after they said they would not deal. I recommend you to anyone.”

Insurance and Real Estate Broker, Texas

“We are not receiving creditor calls or letters in large part to your efforts. We appreciate your service and the professional manner in which you conduct business.”

Advertising Firm, FL

The Waterford Difference – A breed apart

Waterford Group

1. We have an initial fee of $895 to manage all of your debt which we give back to you as we settle debts successfully as a rebate against our fee until the entire $895 is back to you.

2. Our performance / settlement fee is 24% of the savings we earn for you provided we meet our performance guarantee.

3. No termination fees, you want our just notify us and its done.

Competition

1. Not A Chance - Our competitors charge listing fees per creditor, retainer fees, banking fees in addition to settlement fees. Some even force you to allow them to take a lien position against your assets!

2. Our competitors performance or settlement fees are 35% of your savings .

3. Forget It. They charge you 2% of the entire amount of debt they have under representation if you try to get out.

Why are we so unique in our industry? Our results are unparalleled and we GUARANTEE THEM IN WRITING CREDITOR BY CREDITOR . None of our competitors offer you the total package of solutions or have the experience of the Waterford Group having assisted thousands of companies nationwide.

Getting Started – “I wish I had done this sooner” Waterford Client

What you do…

1. You decide the amount of debt you need us to work on, your monthly

commitment to the debt workout and you execute the Services

Agreement & Limited Power of Attorney with our Representative.

2. You provide us with a detailed list of the creditors we are including in

the workout, their contact information and the amounts owed to each.

3. You issue a check in the amount of $895 made payable to The

Waterford Group – which you will get back as we successfully settle

your debts.

Getting Started – “I wish I had done this sooner” TWG-USA client

What we do …

1. When the executed agreement, power of attorney and payment arrive in our

Corporate office we will set up your account in our system and a Waterford

Group Resolution Specialist will contact you to review the workout plan and

to discuss any special circumstances.

2. We immediately contact your creditors and request a formal moratorium on

collection activities for 30 to 45 days at which time we will begin to

implement a workout plan to address their payables.

3. We will call you to discuss other Waterford Group Services you may need.

4. After a workout plan is determined you begin to fund the workout program

we have negotiated with your creditors.

5. Debts are settled one by one eventually making your business debt free.

Contact Information -

Stephen T. Stalter Vice President

� 1143 Northern Boulevard, #323, Clarks Summit, PA 18411� Phone (570) 291-0025 x 101� Fax (215) 701-4405� steves@waterfordnow.com� www.waterfordnow.com