Exhibit







Exhibit 10.1





FIRST AMENDMENT TO
CREDIT AGREEMENT


THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of September 29, 2017 (the “Amendment”), is by and among Performant Business Services, Inc., a Nevada corporation (the “Borrower”) and ECMC Group, Inc., a Delaware non-profit corporation (the “Lender”).
RECITALS:
A.    The Borrower and Lender are parties to that certain Credit Agreement dated as of August 7, 2017 (the “Credit Agreement”), pursuant to which the Lender has made a loan and may make additional loans to the Borrower.
B.    The Borrower and Lender desire to extend the date the first interest payment is due under the Credit Agreement by amendment of the Credit Agreement pursuant to Section 9.1 of the Credit Agreement.
NOW, THEREFORE, in consideration of the above recitals and other good and valuable consideration, the receipt of which is hereby acknowledged, the Borrower and Lender hereby agree as follows:
1. Defined terms.     All capitalized terms used in this Amendment shall have the meanings set forth in the Credit Agreement, as amended hereby, except where the context otherwise requires or as otherwise provided herein. 
2. Amendments.     Section 2.5.2 of the Credit Agreement is hereby deleted and replaced in its entirety with the following:
Accrued interest on each Loan shall initially be payable in arrears on the last day of the fourth Fiscal Quarter of 2017 (December 31, 2017), and thereafter, on the last day of each subsequent Fiscal Quarter, upon a prepayment of such Loan in accordance with Section 2.7 and at maturity in cash; provided that if the last day of a Fiscal Quarter would otherwise end on a day that is not a Business Day, interest shall be paid on the preceding Business Day. After maturity and at the election of Lender at any time an Event of Default exists, all accrued interest on all Loans shall be payable in cash on written demand at the rates specified in Section 2.5.1.
3. Conditions to Effectiveness.     This Amendment shall become effective as of the date first above written (the “Effective Date”) when, and only when this Amendment has been executed on behalf of each of the Lender and the Borrower and delivered by each to the other party, and the Lender shall have received counterparts of a Reaffirmation in form satisfactory to the Lender, dated as of even date herewith, executed by the Guarantors.
4. Representations, Warranties and Covenants.     To induce the Lender to enter into this Amendment, the Borrower hereby represents and warrants to the Lender on the date hereof as follows:


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(a)  the execution, delivery and performance by the Borrower of this Amendment does not and will not (i) require any consent or approval of any government agency or authority (other than any approval which has been obtained and is in full force and effect), (ii) conflict with (x) any provision of applicable law, (y) the charter, by-laws or other organizational documents of Borrower or any other Loan Party or (z) any agreement, indenture, instrument or other document, or any judgment, order or decree, which is binding upon Borrower or any other Loan Party or any of their respective properties or (iii) require, or result in, the creation or imposition of any Lien on any asset of Borrower, any Subsidiary or any other Loan Party (other than Liens in favor of Lender created pursuant to the Collateral Documents) in each case of the foregoing clauses (i), (ii) and (ii), except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect.
(b)  the representations and warranties contained in the Credit Agreement (as may be amended by this Amendment) are true and correct as of the date hereof as though made on that date, except to the extent such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date.
(c)  the Credit Agreement, as amended by this Amendment, is the legal, valid and binding obligation of the Borrower and is enforceable against the Borrower in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors' rights generally and to general principles of equity.
(d)  after giving effect to this Amendment, there does not exist any Default or Event of Default.
5. Reference to and Effect on the Loan Documents.
(a)  From and after the date of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference to the “Credit Agreement”, “thereunder”, “thereof”, “therein” or words of like import referring to the Credit Agreement in any other Loan Document shall mean and be a reference to the Credit Agreement, as amended hereby.
(b)  Except as specifically set forth above, the Credit Agreement and each additional Loan Document remains in full force and effect and is hereby ratified and confirmed.
(c)  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lender under the Credit Agreement or any other Loan Document nor constitute a waiver of any provision of the Credit Agreement or any such other Loan Document.
6. Entire Agreement.     The Credit Agreement, as amended by this Amendment, collectively sets forth the entire understanding and agreements of the parties hereto in relation to the subject matter hereof and supersede any prior negotiations and agreements between the parties relative to such subject matter.  No promise, condition, representation or warranty, express or implied, not set forth in the Credit Agreement or any other Loan Document, as 


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amended by this Amendment, shall bind any party hereto, and none of the Lender or the Borrower have relied on any such promise, condition, representation or warranty.
7. Counterparts.     This Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall together constitute one and the same instrument.
8. Enforceability.     Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.
9. Governing Law; Jurisdiction; Venue; Jury Trial.     THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES. THIS AMENDMENT SHALL BE SUBJECT TO THE JURISDICTION, VENUE, AND JURY TRIAL PROVISIONS OF THE CREDIT AGREEMENT.
10. Headings; Recitals.     Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.  The Recitals hereto are incorporated herein by reference.
11. Successors and Assigns.     This Amendment shall be binding upon and inure to the benefit of the Borrower and the Lender, and their respective, permitted, successors, assigns.












[Signature page to follow]






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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their duly authorized officers as of the date first set forth above.


PERFORMANT BUSINESS SERVICES, INC.
By:    /s/ Lisa Im                    
Title:    Chief Executive Officer


ECMC Group, Inc.
As Lender
By:    /s/ Greg Van Guilder     
Title:    CFO/CIO                       




















[Signature page to First Amendment to Credit Agreement]








Exhibit 10.1







REAFFIRMATION 


Each of the undersigned, Guarantors under that  certain Guarantee and Collateral Agreement dated as of August 11, 2017 (the “GCA”), hereby consents to the terms of that certain First Amendment to Credit Agreement dated as of September 29, 2017 (the “First Amendment”) to which this Reaffirmation is attached, between ECMC Group, Inc. and Performant Business Services, Inc., and hereby acknowledges that the obligations of each of the undersigned under the GCA and the other Loan Documents (as defined in the Credit Agreement) to which any of them is a party, continue in full force and effect from and after the Effective Date (as defined in the First Amendment) of the First Amendment after giving effect to the First Amendment.
Dated as of September 29, 2017.


	
	
	PERFORMANT FINANCIAL CORPORATION, a Delaware corporation

	By:  /s/ Lisa Im                
Name:    Lisa Im                
Title:    Chief Executive Officer         

	PERFORMANT RECOVERY, INC., a California corporation

	By:  /s/ Lisa Im                
Name:    Lisa Im                
Title:    Chief Executive Officer         

	PERFORMANT TECHNOLOGIES, INC., a California corporation

	By:  /s/ Lisa Im                
Name:    Lisa Im                
Title:    Chief Executive Officer