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Prepared and filed by St Ives Financial
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<p align="center"><font size="2" face="serif"><b>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>WASHINGTON, DC 20549</b></font></p>
<p align="center"><font size="2" face="serif"><b>FORM 8-K</b></font></p>
<p align="center"><font size="2" face="serif"><b>CURRENT REPORT </b></font></p>
<p align="center"><font size="2" face="serif"><b>PURSUANT TO SECTION 13 OR 15(D) OF THE<br>SECURITIES EXCHANGE ACT OF 1934</b></font></p>
<p align="left"><font size="2" face="serif">Date of report (Date of earliest event reported): &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 13, 2006</font></p>
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    <td align="center" valign="middle"><font size="2" face="serif">NCO Group,
    Inc.</font></td>
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    <td align="center" valign="middle"><font size="2" face="serif">(Exact Name
    of Registrant as Specified in Its Charter)</font></td>
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    <td width="33%">&nbsp;</td>
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    <td>&nbsp;</td>
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    <td><font size="2" face="serif">Pennsylvania</font></td>
    <td><font size="2" face="serif">&nbsp;0-21639</font></td>
    <td><font size="2" face="serif">23-2858652</font></td>
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    <td><font size="2" face="serif">(State or other jurisdiction of incorporation)</font></td>
    <td><font size="2" face="serif">(Commission File Number)&nbsp;</font></td>
    <td><font size="2" face="serif">&nbsp;(IRS Employer Identification No.)</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td width="50%"><font size="2" face="serif">507 Prudential Road, Horsham, Pennsylvania</font></td>
    <td><font size="2" face="serif">19044</font></td>
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    <td><font size="2" face="serif">&nbsp;(Address of principal executive offices)</font></td>
    <td><font size="2" face="serif">(Zip Code)</font></td>
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<p align="center"><font size="2" face="serif">Registrant&#8217;s telephone number,
including area code <u>(215) 441-3000</u></font></p>
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    <td align="center" valign="middle"><font size="2" face="serif">Not Applicable</font></td>
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    </td>
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    <td align="center" valign="middle"><font size="2" face="serif">(Former name
        or former address, if
changed since last report)</font></td>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<i>see </i>General Instruction A.2. below):</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
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<p align="left"><font size="2" face="serif"><b>Item 1.01  Entry into a Material Definitive Agreement.</b></font></p>
<p align="left"><font size="2" face="serif"><b>Appointment of Directors to Special Committee</b></font></p>
<p align="left"><font size="2" face="serif">On July 13, 2006, the Special Committee of the Board of Directors of NCO Group, Inc. (the &quot;Company&quot;) appointed independent directors William C. Dunkelberg, Ph.D. and Ronald J. Naples to the Special Committee. The Special Committee was established to consider the previously announced proposal received by the Board of Directors on May 15, 2006 from Michael J. Barrist, Chairman and Chief Executive Officer of the Company, to acquire all of the outstanding shares of the Company for $27.50 per share in cash.  Messrs. Dunkelberg and Naples joined Leo J. Pound, Eric S. Siegel and Allen F. Wise who were previously appointed to the Special Committee.  Messrs. Dunkelberg and Naples each  will receive a fee of $25,000, plus reimbursement of
expenses incurred in attending committee meetings, for their services as members of the Special Committee.</font></p>
<p align="left"><font size="2" face="serif"><b>Extension of Employment Agreement of Michael J Barrist</b></font></p>
<p align="left"><font size="2" face="serif">On July 18, 2006, effective as of June 30, 2006, the Company entered into the Third Addendum to the Employment Agreement with Michael J. Barrist, the Chairman of the Board, President and Chief Executive Officer of the Company. The Addendum extends the term of the Employment Agreement until the earlier of: (a) June 30, 2007, (b) 90 days after a Change in Control (as defined in the Company&#8217;s 2004 Equity Incentive Plan, as in effect on the date of the Addendum) and (c) December 31, 2006 (unless on such date the Company is a party to a definitive agreement for a Change in Control, then the earlier of (i) 90 days after the date of the Change in Control pursuant to such agreement or (ii) the date of the termination of such agreement), subject, in
any case, to any early termination provisions set forth in the Agreement.</font></p>
<p align="left"><font size="2" face="serif">The Addendum also clarifies when
the two year non-competition period begins following the termination of Mr. Barrist&#8217;s employment and provides that in circumstances where Mr. Barrist is entitled to continue to receive compensation following the termination of his employment by the Company without cause, Mr. Barrist may waive the right to receive such compensation and have the two year non-competition period begin on the date of the termination of his employment.</font></p>
<p align="left"><font size="2" face="serif">A copy of the Addendum is filed with this Report as Exhibit 10.1 and is incorporated in this Report by reference.</font></p>
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<p align="center"><font size="2" face="serif"><b>SIGNATURES</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>
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    <td colspan="2"><font size="2" face="serif"><b>NCO GROUP, INC.</b></font></td>
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    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
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    <td>&nbsp;</td>
    <td><font size="2" face="serif">By:</font></td>
    <td><font size="2" face="serif"><u>/s/ John R. Schwab</u></font></td>
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    <td>&nbsp;</td>
    <td><font size="2" face="serif">Name:</font></td>
    <td><font size="2" face="serif">John R. Schwab</font></td>
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    <td>&nbsp;</td>
    <td><font size="2" face="serif">Title:</font></td>
    <td><font size="2" face="serif">Executive Vice President, <br>
	Finance and Chief Financial Officer</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
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Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):           July 13, 2006
NCO Group,
    Inc.
(Exact Name
    of Registrant as Specified in Its Charter)
Pennsylvania
0-21639
23-2858652
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
507 Prudential Road, Horsham, Pennsylvania
19044
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number,
including area code
(215) 441-3000
Not Applicable
(Former name
        or former address, if
changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01  Entry into a Material Definitive Agreement.
Appointment of Directors to Special Committee
On July 13, 2006, the Special Committee of the Board of Directors of NCO Group, Inc. (the "Company") appointed independent directors William C. Dunkelberg, Ph.D. and Ronald J. Naples to the Special Committee. The Special Committee was established to consider the previously announced proposal received by the Board of Directors on May 15, 2006 from Michael J. Barrist, Chairman and Chief Executive Officer of the Company, to acquire all of the outstanding shares of the Company for $27.50 per share in cash.  Messrs. Dunkelberg and Naples joined Leo J. Pound, Eric S. Siegel and Allen F. Wise who were previously appointed to the Special Committee.  Messrs. Dunkelberg and Naples each  will receive a fee of $25,000, plus reimbursement of
expenses incurred in attending committee meetings, for their services as members of the Special Committee.
Extension of Employment Agreement of Michael J Barrist
On July 18, 2006, effective as of June 30, 2006, the Company entered into the Third Addendum to the Employment Agreement with Michael J. Barrist, the Chairman of the Board, President and Chief Executive Officer of the Company. The Addendum extends the term of the Employment Agreement until the earlier of: (a) June 30, 2007, (b) 90 days after a Change in Control (as defined in the Company's 2004 Equity Incentive Plan, as in effect on the date of the Addendum) and (c) December 31, 2006 (unless on such date the Company is a party to a definitive agreement for a Change in Control, then the earlier of (i) 90 days after the date of the Change in Control pursuant to such agreement or (ii) the date of the termination of such agreement), subject, in
any case, to any early termination provisions set forth in the Agreement.
The Addendum also clarifies when
the two year non-competition period begins following the termination of Mr. Barrist's employment and provides that in circumstances where Mr. Barrist is entitled to continue to receive compensation following the termination of his employment by the Company without cause, Mr. Barrist may waive the right to receive such compensation and have the two year non-competition period begin on the date of the termination of his employment.
A copy of the Addendum is filed with this Report as Exhibit 10.1 and is incorporated in this Report by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NCO GROUP, INC.
By:
/s/ John R. Schwab
Name:
John R. Schwab
Title:
Executive Vice President,
Finance and Chief Financial Officer