Exhibit 10.2

INCREMENTAL TERM LOAN
AND EXTENSION AGREEMENT

CATHAY BANK
777 North Broadway
Los Angeles, CA 90012
OPUS BANK
1055 Wilshire Blvd, Suite GND3
Los Angeles, CA 90017
UMPQUA BANK
11440 West Bernardo Court
Suite 300
San Diego, CA 9212

March 2, 2017
Encore Capital Group, Inc.
3111 Camino Del Rio North
Suite 1300
San Diego, California
Attention:    Chief Financial Officer
Re: Incremental Term Loan and Extension Agreement
Ladies and Gentlemen:
Reference is hereby made to that certain Third Amended and Restated Credit
Agreement, dated as of December 20, 2016 (as amended, restated, modified,
supplemented, extended or replaced from time to time, the “Credit Agreement”),
by and among Encore Capital Group, Inc. (“Borrower”), the several banks and
other financial institutions and lenders from time to time party thereto (the
“Lenders”), SunTrust Bank, as administrative agent (in such capacity, the
“Administrative Agent”) and collateral agent, issuing bank and swingline lender.
Unless otherwise defined herein, capitalized terms used herein shall have the
respective meanings set forth in the Credit Agreement. This Incremental Term
Loan and Extension Agreement (this “Agreement”) (i) is an “Incremental Facility
Amendment” (as defined in the Credit Agreement) and an amendment to the Credit
Agreement for purposes of effecting an Extension, and the Credit Agreement is
hereby amended in accordance with the terms and conditions herein and (ii) shall
be deemed to be a “Loan Document” under the Credit Agreement.
At the request of the Borrower, Cathay Bank (the “Incremental Lender”) hereby
agrees to make an Incremental Term Loan to the Borrower in the amount of
$279,017.86 (the “Incremental Term Loan”). The Incremental Term Loan provided
pursuant to this Agreement shall be subject to all of the terms and conditions
set forth in the Credit Agreement, including without limitation, Section 2.5
thereof; provided that, notwithstanding anything set forth in Section 2.24(a) of
the Credit Agreement, the Administrative Agent hereby waives the minimum
principal amount required for an Incremental Facility in connection with the
Incremental Term Loan to be provided as contemplated hereby. As of the date
hereof, after giving effect to the making of the Incremental Term Loan, the
aggregate principal amount of the Term Loan A-3 held by the Incremental Lender
is $1,752,232.15.
The Incremental Lender, the Borrower and the Administrative Agent each
acknowledges and agrees that the Incremental Term Loan provided pursuant to this
Agreement shall constitute a “Term Loan” for all purposes of the Credit
Agreement and the other applicable Loan Documents. Furthermore, each of the
parties to this Agreement hereby agrees that (i) the Incremental Term Loan shall
be subject to the terms set forth on Annex II hereto, (ii) except as otherwise
expressly set forth herein, the Incremental Term Loan shall be on the same terms
and conditions as the Term Loan A-3 under the Credit Agreement and (iii) the

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Incremental Term Loan shall constitute a “Term Loan A-3” for all purposes of the
Credit Agreement and the other applicable Loan Documents.
At the request of the Borrower, (a) each of Cathay Bank and Umpqua Bank (each a
“TLA2 Extending Lender” and together, the “TLA2 Extending Lenders”) hereby
agrees to extend the maturity date of 100% of the Term Loan A-2 held by each
such TLA2 Extending Lender (the “Extended Term Loan A-2”) to the Term Loan A-3
Maturity Date and (b) each of Cathay Bank, Opus Bank and Umpqua Bank (each a
“2019 Extending Lender” and, collectively, the “2019 Extending Lenders”; the
2019 Extending Lenders and the TLA2 Extending Lenders, collectively, the
“Extending Lenders”) hereby agrees to extend the termination date of 100% of the
Revolving Commitments held by such 2019 Extending Lender (the “Extended
Revolving Commitments) to the Revolving Commitment Termination Date (to the
extent the termination date of such Revolving Commitments held by such Lenders
is not currently on the Revolving Commitment Termination Date). In connection
with the Extended Term Loan A-2 and Extended Revolving Commitments, the Borrower
hereby waives any minimum extension amount as may be required in the Credit
Agreement. As of the date hereof, after giving effect to the extension of the
maturity date and termination date of the Extended Term Loan A-2 and Extended
Revolving Commitments, respectively, by the Extending Lenders (the “Extension”),
the aggregate principal amount of each TLA2 Extending Lender’s Term Loan A-3 and
each 2019 Extending Lender’s Revolving Commitment are as set forth on Annex I.
Each of the parties to this Agreement hereby agrees that the Extended Term Loan
A-2 shall constitute a “Term Loan A-3” for all purposes of the Credit Agreement
and the other applicable Loan Documents.
In order to effect the Extension and the making of the Incremental Term Loan, in
each case, as contemplated hereby, each party hereto acting pursuant to Sections
2.24(d) and 2.25(c) of the Credit Agreement, hereby agrees that the Credit
Agreement is hereby amended as follows:
1)
The definition of “Term Loan A-3” is hereby amended and restated to read in its
entirety as follows:

“Term Loan A-3”: shall mean (i) a Term Loan A-2 that has been converted pursuant
to Section 2.5(b), (ii) an additional Term Loan A-3 made by an Increasing Lender
on the Closing Date pursuant to Section 2.5(c) or (iii) any Incremental Term
Loan or Extended Term Loan made or extended after the Closing Date and
designated as a Term Loan A-3 in the relevant Incremental Facility Amendment or
other instrument pursuant to which such loan is made or extended.

2)
Section 2.9(g) is hereby amended by replacing the part therein that reads
“$88,250,231.44” with “$92,580,588.57”.

Upon the date of (i) the execution of a counterpart of this Agreement by the
Incremental Lender, the Extending Lenders, the Administrative Agent, the
Borrower and each Guarantor, (ii) the delivery to the Administrative Agent of a
fully executed counterpart (including by way of facsimile or other form of
electronic transmission permitted under the Credit Agreement) hereof, (iii) the
payment of any fees as agreed between Borrower and SunTrust Robinson Humphrey,
Inc. (“STRH”) set forth in that certain Engagement Letter, dated November 14,
2016 by and between Borrower and STRH, and (iv) the satisfaction (or waiver in
writing) of any other conditions precedent set forth in Section 5 of Annex II
hereto (such date, the “Agreement Effective Date”) (a) the Incremental Lender
shall fund the Incremental Term Loan on the terms, and subject to the
conditions, set forth in the Credit Agreement and in this Agreement and (b) the
extension of the maturity date and termination date of the Extended Term Loan
A-2 and Extended Revolving Commitments, respectively, contemplated hereby shall
each become effective. As of the Agreement Effective Date, and after giving
effect to transactions contemplated by this Agreement, the aggregate outstanding
principal amount of the Term Loans and/or the Revolving Commitments held by each
of the Lenders are as set forth on Annex III and Annex IV respectively.

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Each of the Borrower and each Guarantor acknowledges and agrees that (i) it
shall be liable for all Obligations with respect to the Incremental Term Loan
created hereunder and the Extended Term Loan A-2 and Extended Revolving
Commitments that are extended hereunder and (ii) all such Obligations (including
the Incremental Term Loan, the Extended Term Loan A-2 and Extended Revolving
Commitments) shall constitute (and be included in the definition of) “Secured
Obligations” under the Credit Agreement and be entitled to the benefits of the
respective Collateral Documents and the Guaranty Agreement as, and to the
extent, provided in the Credit Agreement and in such other Loan Documents.
The Borrower may accept this Agreement by signing the enclosed copies in the
space provided below, and returning one copy of same to the Incremental Lender
and each Extending Lender and one copy to the Administrative Agent before the
close of business on March 2, 2017. If the Borrower does not so accept this
Agreement by such time, the obligations of the Incremental Lender to provide the
Incremental Term Loan set forth in this Agreement and Extension contemplated by
this Agreement shall be deemed canceled and of no force or effect.
After the execution and delivery to the Administrative Agent of a fully executed
copy of this Agreement (including by way of counterparts and by facsimile
transmission) by the parties hereto, this Agreement may only be changed,
modified or varied by written instrument in accordance with the requirements for
the modification of Loan Documents pursuant to Section 10.2 of the Credit
Agreement.
THIS AGREEMENT AND THE OBLIGATIONS HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE
WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES (BUT, IN ANY EVENT, GIVING EFFECT TO SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
[Signature Pages Follow]

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Very truly yours,

CATHAY BANK
By: /s/ Scott Kim________________________
Name: Scott Kim________________________
Title: VP & Portfolio Manager_____________

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OPUS BANK
By: /s/ Ramsey Naber_____________________
Name: Ramsey Naber___________________
Title: SVP_________________________

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UMPQUA BANK
By: /s/ Mark J. Lee_______________________
Name: Mark J. Lee_______________________
Title: EVP, Regional Director______________

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Agreed and Accepted as of the date first written above:

SUNTRUST BANK, as Administrative Agent,
Issuing Bank and Swingline Lender
By: /s/ Paula Mueller__________________
Name: Paula Mueller
Title: Director

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Agreed and Accepted as of the date first written above:
ENCORE CAPITAL GROUP, INC.
By: /s/ Jonathan Clark_____________________
Name: Jonathan Clark__________________
Title: EVP, Chief Financial Officer and Treasurer

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Each Guarantor acknowledges and agrees to each the foregoing provisions of this
Incremental Facility Agreement and to the establishment of the Incremental
Facility and the Obligations incurred related thereto.

MIDLAND CREDIT MANAGEMENT, INC.
MIDLAND FUNDING LLC
MIDLAND PORTFOLIO SERVICES, INC.
MIDLAND FUNDING NCC-2 CORPORATION
MIDLAND INTERNATIONAL LLC
MRC RECEIVABLES CORPORATION
ASSET ACCEPTANCE CAPITAL CORP.
ASSET ACCEPTANCE, LLC
ATLANTIC CREDIT & FINANCE, INC.

By: /s/ Jonathan Clark ____________________
Name: Jonathan Clark
Title: Treasurer

MIDLAND INDIA LLC

By: /s/ Ashish Masih______________________
Name: Ashish Masih
Title: President

ASSET ACCEPTANCE RECOVERY SERVICES, LLC
ASSET ACCEPTANCE SOLUTIONS GROUP, LLC
LEGAL RECOVERY SOLUTIONS, LLC

By: /s/ Darin Herring______________________
Name: Darin Herring
Title: Vice President, Operations

ATLANTIC CREDIT & FINANCE SPECIAL FINANCE UNIT, LLC
ATLANTIC CREDIT & FINANCE SPECIAL FINANCE UNIT III, LLC

By: /s/ Greg Call__________________________
Name: Greg Call
Title: Secretary

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ANNEX I

TLA-2 Extending Lenders:

Lender
Total Term Loan A-3 as of the Agreement Effective Date
Cathay Bank

$1,752,232.15

Umpqua Bank
2,578,124.98

Total

$4,330,357.13

2019 Extending Lenders:

Lender
Revolving Commitment Amount as of the Agreement Effective Date
Cathay Bank

$13,164,285.70

Opus Bank
10,000,000.00

Umpqua Bank
41,041,666.67

Total

$64,205,952.37

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ANNEX II
TERMS AND CONDITIONS FOR
INCREMENTAL TERM LOAN AND EXTENSION AGREEMENT
1. Name of Borrower: Encore Capital Group, Inc., a Delaware corporation.
2. Date upon which the Incremental Term Loan is to become effective:    March 2,
2017.
3. Date upon which the Incremental Term Loan matures: the Term Loan A-3 Maturity
Date.
4. Applicable Margin: Identical to the “Applicable Margin” as defined in the
Credit Agreement.
5. Other Conditions Precedent:
(a)    No Default or Event of Default has occurred and is continuing or will
result from (i) the incurrence by the Borrower of the Incremental Term Loan
provided by the Incremental Lender as of the date hereof or (ii) the Extension,
in each case, as contemplated by the Incremental Term Loan and Extension
Agreement;
(b)    the Borrower and its Restricted Subsidiaries are in pro forma compliance
with each of the covenants set forth in Article VI of the Credit Agreement as of
the last date of the most recently ended Fiscal Quarter after giving effect to
the Incremental Term Loan provided by the Incremental Lender under the
Incremental Term Loan and Extension Agreement on the date hereof; and
(c)     each of the conditions in Section 3.2 of the Credit Agreement have been
satisfied.

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ANNEX III

TERM LOAN AMOUNTS, ADDITIONAL TERM LOAN A-3 COMMITMENT AMOUNTS AND INCREMENTAL
OR EXTENDED TERM LOAN A-3 AMOUNTS OF INCREASING LENDERS, EXTENDING LENDERS AND
NON-EXTENDING LENDERS

Extending Lenders:

Lender
Aggregate Amount of Term Loan A-2 of Existing Lender Converted to Term Loan A-3
on the Closing Date
Additional Term Loan A-3 Commitment of Increasing Lenders as of the Closing Date
Incremental or Extended Term Loan A-3 as of the Agreement Effective Date
Total Term Loan A-3 as of the Agreement Effective Date
SunTrust Bank

$12,690,361.06

$2,331,019.21

 

$15,021,380.27

Bank of America
13,469,866.33

1,551,513.94

 
15,021,380.27

ING Capital
7,533,482.17

142,787.76

 
7,676,269.93

Union Bank, NA
2,260,044.66

2,337,004.18

 
4,597,048.84

Citibank, NA
5,273,437.52

 
 
5,273,437.52

California Bank and Trust
6,428,571.75

 
 
6,428,571.75

Flagstar Bank
 
25,000,000.00

 
25,000,000.00

Bank Leumi
3,570,870.47

661,272.39

 
4,232,142.86

Northwest Bank
4,656,250.00

343,750.00

 
5,000,000.00

Umpqua Bank
 
 
2,578,124.98
2,578,124.98

Cathay Bank
 
 
1,752,232.15
1,752,232.15

Total

$55,882,883.96

$32,367,347.48

4,330,357.13

$92,580,588.57

Non-Extending Lenders:

Lender
Term Loan A as of the Agreement Effective Date
Term Loan A-1 as of the Agreement Effective Date
Term Loan A-2 as of the Agreement Effective Date
Fifth Third Bank
 
 

$7,367,092.84

Deutsche Bank AG New York
 

$49,500,000.00

 
Raymond James Bank, N.A.
 
 
7,734,375.00

Chang Hwa
 
 
1,473,214.30

Israel Discount Bank

$2,723,214.27

 
 
Amalgamated Bank
2,042,410.70

 
 
Manufacturers Bank
________________

__________________

1,473,214.30

Total

$4,765,624.97

$49,500,000.00

$18,047,896.44

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ANNEX IV

REVOLVING COMMITMENT AMOUNTS OF NEW LENDER,
INCREASING LENDERS, EXTENDING LENDERS AND NON-EXTENDING LENDERS

New Lender:

Lender
Revolving Commitment Amount as of the Agreement Effective Date
UMPQUA BANK

$41,041,666.67

Extending Lenders:

Lender
2021 Revolving Commitment Amount as of the Agreement Effective Date
SunTrust Bank

$83,278,619.73

Bank of America
83,278,619.73

ING Capital
67,323,730.07

Credit Suisse AG Cayman Island
50,000,000.00

Union Bank, NA
45,402,951.16

Citibank NA
43,749,999.98

Morgan Stanley Bank NA
40,625,000.00

California Bank and Trust
32,380,952.00

Flagstar Bank
5,000,000.00

PrivateBank and Trust Co.
25,000,000.00

UBS AG
20,000,000.00

Bank Leumi
10,767,857.14

CTBC Bank Corp
10,000,000.00

Opus Bank
10,000,000.00

Cathay Bank
13,164,285.70

TOTAL (New and Extending)

$581,013,682.18

Non-Extending Lenders:

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Lender
Revolving Commitment Amount as of the Agreement Effective Date
2017 Lenders
 
Israel Discount Bank

$16,190,476.19

Amalgamated Bank
15,892,857.14

Total 2017 Lenders

$32,083,333.33

2019 Lenders
 
Fifth Third Bank
51,070,190.48

Citizens Bank, NA
35,000,000.00

Raymond James Bank, N.A.
20,000,000.00

Chang Hwa
19,345,238.10

Barclays Bank PLC
20,000,000.00

Western Alliance Bank
15,000,000.00

Manufacturers Bank
8,214,285.70

Total 2019 Lenders

$168,629,714.28