COMMITMENTS AND CONTINGENCIES	9 Months Ended
Sep. 30, 2011
Notes to Financial Statements
Note 6 - COMMITMENTS AND CONTINGENCIES	On June 10, 2011, the Company relocated its executive and operations offices from Palm Beach Gardens, Florida to Lake Mary, Florida. The Company is currently being allowed to use its new space free of charge. The Company surrendered the lease for its prior office space in Palm Beach Gardens, Florida, which surrender was accepted by the landlord. As a result, the Company has no liability for unpaid rent or any other costs or expenses arising from its previous lease agreement. On August 29, 2010, the Company entered into an employment agreement with William G. Forhan to serve as our Chief Executive Officer and Chief Financial Officer, the term of which was approximately three years ending on July 19, 2013 and subject to renewal or termination with or without cause. Mr. Forhan received an annual base salary of Two Hundred Thousand Dollars ($200,000) per year during the term of his employment, payable in accordance with the Company’s semi-monthly payroll disbursement cycle. Under this agreement, Mr. Forhan was also entitled to be paid a bonus of five percent (5%) of our annual EBITDA, in cash and a $500 monthly car allowance. On December 21, 2010, Mr. Forhan voluntarily resigned from his positions as our Chief Executive and Financial Officer and his employment agreement was effectively terminated. Following this event, Mr. Forhan served as our Chief Operating Officer until January 11, 2011, at which time he also voluntarily resigned from that position. Mr. Forhan had previously been removed as a Director by a majority vote of our shareholders on December 16, 2010. On August 29, 2010, the Company also entered into an employment agreement with Brad Shrader to serve as our Chief Operating Officer. The term of this agreement was to expire on August 23, 2013, subject to renewal or termination with or without case. Through this agreement, Mr. Shrader received an annual base salary of $135,000 plus a bonus equal to 1.5% of the Company’s EBITDA and a $500 per month car allowance. Mr. Shrader also received 200,000 shares of the Company’s common stock and an option to purchase up to 50,000 shares of the Company’s common stock for a purchase price of $.20 per share until the third anniversary from the grant date of the option. On December 16, 2010, Mr. Shrader was terminated as the Company’s Chief Operating Officer due to disagreements he had with other members of management. In accordance with the terms of his employment agreement, its termination also constituted the resignation by Mr. Shrader from our Board of Directors. Mr. Shrader’s shares and options to purchase additional shares as provided for by the employment agreement were also cancelled. Mr. Shrader accepted the termination of his employment agreement but has claimed he is owed approximately $12,500 for accrued wages, unpaid expenses and severance. The Board of Directors has evaluated these claims and disputes that Mr. Shrader is owed any additional amounts. To date, no further action has been taken by Mr. Shrader to pursue these claims. On December 16, 2010, the Company appointed William A. Glynn to serve as our Chief Executive Officer, Chief Financial Officer and Treasurer at an annual salary of $52,000. Mr. Glynn also receives travel and other reasonable and necessary expenses he incurs. Bradley Wilson was elected Chairman of National Asset Recovery Corporation effective December 2010. The Board of directors approved Mr. Wilson’s compensations package of $150,000 a year. To date no compensation has been paid due to lack of working capital within the Company. Mr. Wilson agreed to delay this payment until adequate working capital is available. The Company has accrued the unpaid salary as of September 30, 2011. Mr. William A. Glynn, CEO and CFO of National Asset Recovery Corporation was hired to operate the company on a day to day basis with an annual compensation package of $52,000 plus a bonus of $25,000. The bonus plan has not been determined at this time however Mr. Glynn and the board of directors are finalizing the bonus plan. To date no compensation has been paid due to lack of working capital within the Company. Mr. Glynn agreed to delay this payment until adequate working capital is available. The Company has accrued the unpaid salary as of September 30, 2011. In the event of a change of control or sale of the Company, the compensation to Mr. Wilson and Mr. Glynn will have to be settled prior to any closing. The Company entered into various consulting agreements that related to services rendered by certain consultants. All of these consulting agreements have been terminated.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2011

On June 10, 2011, the Company relocated its executive and operations offices from Palm Beach Gardens, Florida to Lake Mary, Florida. The Company is currently being allowed to use its new space free of charge. The Company surrendered the lease for its prior office space in Palm Beach Gardens, Florida, which surrender was accepted by the landlord. As a result, the Company has no liability for unpaid rent or any other costs or expenses arising from its previous lease agreement.

On August 29, 2010, the Company entered into an employment agreement with William G. Forhan to serve as our Chief Executive Officer and Chief Financial Officer, the term of which was approximately three years ending on July 19, 2013 and subject to renewal or termination with or without cause. Mr. Forhan received an annual base salary of Two Hundred Thousand Dollars ($200,000) per year during the term of his employment, payable in accordance with the Company’s semi-monthly payroll disbursement cycle. Under this agreement, Mr. Forhan was also entitled to be paid a bonus of five percent (5%) of our annual EBITDA, in cash and a $500 monthly car allowance. On December 21, 2010, Mr. Forhan voluntarily resigned from his positions as our Chief Executive and Financial Officer and his employment agreement was effectively terminated. Following this event, Mr. Forhan served as our Chief Operating Officer until January 11, 2011, at which time he also voluntarily resigned from that position. Mr. Forhan had previously been removed as a Director by a majority vote of our shareholders on December 16, 2010.

On August 29, 2010, the Company also entered into an employment agreement with Brad Shrader to serve as our Chief Operating Officer. The term of this agreement was to expire on August 23, 2013, subject to renewal or termination with or without case. Through this agreement, Mr. Shrader received an annual base salary of $135,000 plus a bonus equal to 1.5% of the Company’s EBITDA and a $500 per month car allowance. Mr. Shrader also received 200,000 shares of the Company’s common stock and an option to purchase up to 50,000 shares of the Company’s common stock for a purchase price of $.20 per share until the third anniversary from the grant date of the option.

On December 16, 2010, Mr. Shrader was terminated as the Company’s Chief Operating Officer due to disagreements he had with other members of management. In accordance with the terms of his employment agreement, its termination also constituted the resignation by Mr. Shrader from our Board of Directors. Mr. Shrader’s shares and options to purchase additional shares as provided for by the employment agreement were also cancelled. Mr. Shrader accepted the termination of his employment agreement but has claimed he is owed approximately $12,500 for accrued wages, unpaid expenses and severance. The Board of Directors has evaluated these claims and disputes that Mr. Shrader is owed any additional amounts. To date, no further action has been taken by Mr. Shrader to pursue these claims.

On December 16, 2010, the Company appointed William A. Glynn to serve as our Chief Executive Officer, Chief Financial Officer and Treasurer at an annual salary of $52,000. Mr. Glynn also receives travel and other reasonable and necessary expenses he incurs.

Bradley Wilson was elected Chairman of National Asset Recovery Corporation effective December 2010. The Board of directors approved Mr. Wilson’s compensations package of $150,000 a year. To date no compensation has been paid due to lack of working capital within the Company. Mr. Wilson agreed to delay this payment until adequate working capital is available. The Company has accrued the unpaid salary as of September 30, 2011.

Mr. William A. Glynn, CEO and CFO of National Asset Recovery Corporation was hired to operate the company on a day to day basis with an annual compensation package of $52,000 plus a bonus of $25,000. The bonus plan has not been determined at this time however Mr. Glynn and the board of directors are finalizing the bonus plan. To date no compensation has been paid due to lack of working capital within the Company. Mr. Glynn agreed to delay this payment until adequate working capital is available. The Company has accrued the unpaid salary as of September 30, 2011.

In the event of a change of control or sale of the Company, the compensation to Mr. Wilson and Mr. Glynn will have to be settled prior to any closing.

The Company entered into various consulting agreements that related to services rendered by certain consultants. All of these consulting agreements have been terminated.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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+ Details

National Asset Recovery Corp. 10-Q