Document:

Employment Agreement - Jon D. Shaver

 Exhibit 10.9 
 EMPLOYMENT AGREEMENT 
 DCS, Inc. 

and Jon D. Shaver 

EMPLOYMENT AGREEMENT 
 DIVERSIFIED COLLECTION SERVICES, INC., a California corporation (“Corporation”) hereby employs JON D. SHAVER (“Employee”) and Employee hereby agrees to work for Corporation upon the
following terms and conditions. 
  

	1.	Term. The term of this Agreement shall be one (1) year commencing on March 31, 2003, provided that the Agreement and the employment hereunder shall be
renewed automatically for regular periods of one (1) year unless terminated by Corporation or Employee as hereafter provided in Paragraph 4. 

  

	2.	Scope. Corporation hereby employs Employee to render services to Corporation as the Executive Vice President and Chief Operating Officer (COO) and in such
additional capacities as may be designated from time to time by Corporation. Employee shall report to and perform such duties commensurate with his position as may be specified from time to time by Chief Executive Officer (CEO). Employee shall
devote his entire time, skill, labor, efforts and attention to the employment with Corporation. The nature of the employment and Employee’s powers and duties in any capacity thereunder shall be determined from time to time by the CEO. During
the term of this Agreement, Employee shall not, directly or indirectly, alone or as a member of a partnership or as an officer, director or shareholder of any other corporation, (other than any which are owned by or affiliated with Corporation), be
engaged in or concerned with any other commercial duties or pursuits whatsoever, except with the written consent of the CEO. 

  

	3.	Compensation. Corporation shall pay to or provide compensation for Employee as hereafter set forth. 

 

	 	3.1	Corporation shall pay Employee a salary of EIGHTEEN THOUSAND SEVEN HUNDRED FIFTY DOLLARS AND 00/100 CENTS ($18,750.00) per month. 

 

	 	3.2	Corporation shall pay Employee a quarterly salary bonus not to exceed TWENTY-FIVE THOUSAND DOLLARS AND 00/100 CENTS ($25,000.00) for each quarter of the fiscal year of
the Corporation based on Employee’s attainment of specified priorities, goals, and objectives established for Employee by the Corporation from time to time (“Performance Bonus”). Employee acknowledges and agrees that the terms and
conditions of said priorities, goals, and objectives are dynamic and will reflect the business environment then existing. Additionally, Employee shall be entitled to participate in the Corporation’s “back-end” bonus program
(“Back-End Bonus”). The Back-End Bonus, if any, shall be determined according to the Corporation’s Back-End Bonus Plan, payable according to the terms of the Plan, which terms are incorporated herein by this reference. Corporation may
alter, modify or terminate the Back-End Bonus Plan at any time. 

  
 1 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	3.3	Corporation shall reimburse Employee for the actual costs of the pre-approved business expenses of Employee on presentation of appropriate vouchers by Employee.

  

	 	3.4	Employee shall participate in all of Corporation’s benefit programs, including the medical program, currently in existence or established during the term of
Employee’s employment, in substantially the same manner and extent as other similar Corporation employees. 

  

	 	3.5	Employee shall be entitled to vacation in accordance with the currently promulgated policy. Corporation shall pay the premiums on a term life insurance policy insuring
the life of Employee with a death benefit not to exceed ONE MILLION DOLLARS ($1,000,000.00) (“Policy”); the Policy ownership and beneficiary designated shall be designated by Employee. Acquisition of the Policy is subject to Employee
qualifying for said coverage. 

  

	 	3.6	 Corporation shall pay Employee an allowance of $1700.00 per month to cover the operating, maintenance and lease or installment purchase expense for an
automobile (“Auto Lease or Installment Purchase”) for use in performing the duties assigned to him under this Agreement. In the event the employment of Employee terminates prior to the expiration, of the Auto Lease or Installment Purchase, Employee shall be solely
responsible for any further expenses thereafter relating to such lease or purchase. 

  

	4.	Termination of Agreement. 

  

	 	4.1	 Termination by Corporation for Cause. Corporation may terminate this Agreement for cause by written notice to Employee after Corporation has
given Employee a written notice of proposed termination and Employee has failed to correct the deficiencies noted in said notice within fifteen (15) business days after receipt of the written notice of proposed termination. The written notice
of proposed termination for cause shall specify, in detail
the facts or circumstances constituting Corporation’s cause for termination. Cause for termination shall include, buts not be limited to, intentional or willful breach of or material neglect of duty, excessive absenteeism, repeated failure to
perform work as required or to carry out the policies of or abide by the procedures established by Corporation, or failure to substantially achieve the goals and objectives of Corporation that are set by Corporation from time to time. If Corporation
terminates this Agreement for cause, then Employee’s compensation for the then current year of service shall be limited to the compensation provided in subparagraph 3.1 herein prorated through the date of such termination for cause.

  

	 	4.2	 Termination of Employee Without Cause. Corporation may terminate this Agreement without cause by fifteen (15) days written notice to
Employee. In such event, Corporation shall pay Employee a sum equal to the aggregate amount due Employee under subparagraphs 3.1, 3.2, and 3.6 herein through the date of 

  
 2 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
termination. In the event Employee’s employment is terminated for a reason specified in subparagraphs 4.2 or 4.5, Corporation shall pay Employee the sum of ONE HUNDRED THOUSAND DOLLARS
($100,000.00) as liquidated damages. Upon change of control of the Corporation only, if Employee’s employment with the Corporation is (1) voluntarily terminated by Employee because Employee’s employment conditions have been adversely
and materially changed, including without limitation Employer’s requiring geographic location without consent or imposing on Employee a position of lesser status, responsibility or compensation, or any of the above, or (2) involuntarily
terminated other than for “Special Cause,” at any time within two years following the closing date of such change in. control, Employee shall be entitled to a severance payment in the amount of one year of Employee’s prior
annualized salary plus bonus, or one month per year of service, whichever is greater. “Special Cause” shall include, but not be limited to: (a) willful engagement in conduct that involves dishonesty or moral turpitude that either
(i) results in substantial personal enrichment at the expense of the Corporation or any of its affiliates, or (ii) is demonstrably and materially injurious to the financial condition or reputation of Corporation or any of its affiliates,
or (b) Employee’s willful violation of the provisions of any confidentiality or non-competition agreement between Employee and the Corporation or any of its affiliates. An act or omission shall be deemed “willful” for the
purposes hereof only if done, or omitted to be done, in bad faith and without reasonable belief that it was in the best interests of Corporation and its affiliates. For the purposes of this subparagraph, the Corporation shall be considered to have
undergone a change in control if the holder(s) of more than fifty per cent of the current equity ownership in the Corporation or its parent sell common stock to unrelated third parties resulting in such holders then having less than fifty per cent ownership in the Corporation. In the event of any conflict
between this provision and any provision of the Change of Control Severance Agreement, dated as of July 31, 2003, such Change of Control Severance Agreement shall control. 

 

	 	4.3	Termination by Death of Employee. This Agreement shall terminate upon the death of Employee, and Corporation shall pay to Employee’s designated beneficiary,
if any, and if not, then to the personal representative of the Employee’s estate, a sum equal to the aggregate compensation due Employee under subparagraphs 3.1 and 3.2 herein, up to the date of Employee’s death. 

 

	 	4.4	Voluntary Termination by Employee. Employee may terminate this Agreement upon thirty (30) days written notice to Corporation. Upon such termination,
Corporation shall pay Employee a sum equal to the compensation due Employee under subparagraph 3.1 herein as of the effective date of Employee’s notice. 

 

	 	4.5	 Termination by Total Disability of Employee. This Agreement shall terminate upon the total disability of Employee, and Corporation shall pay
Employee a sum equal to the aggregate amount payable to Employee under subparagraphs 3.1, 3.2, 

  
 3 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
and 3.6 herein as of the date of Employee’s disability, as defined in subparagraph 8.2.1. 

  

	5.	Confidentiality, Intellectual Property and Noncompetition. 

  

	 	5.1	Protection of Proprietary Information. In the course of his employment, Employee may learn, discover, be taught, help develop, or otherwise have access to
certain information and materials of Corporation that Corporation has compiled, gathered, and developed over many years, that are important to, the successful operation of Corporation, and that Corporation regards as proprietary and a
confidential trade secret. Employee agrees that his employment creates a relationship of confidence and trust with Corporation with respect to trade secrets and other proprietary information of Corporation or its customers learned by Employee during
the period of employment. 

  

	 	(a)	Employee agrees not to directly or indirectly use or disclose any Proprietary Information at any time except in connection with the services Employee provides to the
Corporation. “Proprietary Information” shall mean trade secrets, confidential knowledge, data, or any other proprietary information of the Corporation and shall include, but not necessarily be limited to, the following:

  

	 	(i)	Corporation’s customer or client lists 

  

	 	(ii)	Corporation’s customers’ or clients’ buying habits or practices 

 

	 	(iii)	Key contact people for Corporation’s customers/clients 

  

	 	(iv)	Customer/client fee or payment arrangements 

  

	 	(v)	
Corporation’s marketing materials, strategies, methods, pricing, and related data 

  

	 	(vi)	Corporation’s vendors or suppliers 

  

	 	(vii)	Corporation’s costs of materials 

  

	 	(viii)	Lists or other written records used in Corporation’s business 

  

	 	(ix)	Compensation paid by Corporation to employees and consultants, and other terms of employment or consultant arrangements 

 

	 	(x)	Collection techniques and procedures developed by Corporation 

  
 4 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	(xi)	Computer software, firmware, user manuals, and training manuals 

 Corporation makes reasonable efforts to maintain the confidentiality of this information, including requiring all of its employees to sign a written undertaking not to disclose any confidential or
Proprietary Information that the Employee may learn about, regardless of how the Employee acquires the information. Such information is and will remain confidential, even if the Employee helps develop, gather, or acquire the information himself.
Therefore, Employee agrees, in addition to all other promises made herein, as follows: 
  

	 	(b)	 At all times during his employment and at all times after termination of his employment, Employee will keep in confidence and trust all Proprietary
Information, and Employee will not use or disclose any Proprietary Information or anything relating to it without the written consent of Corporation, except as may be necessary in the ordinary course of performing Employee’s duties to Corporation. 

 

	 	(c)	All Corporation property, including but not limited to Proprietary Information, documents, data, records, apparatus, samples, books, notebooks, manuals, jackets, lists,
correspondence, graphic or pictorial renderings, equipment, and other physical property, whether or not pertaining to Proprietary Information, provided to Employee by Corporation or produced by Employee or others in connection with Employee
providing services to the Corporation shall be and remain the sole property of Corporation and shall be returned promptly to Corporation as and when requested by Corporation. Employee shall return and deliver all such property upon termination of
this Agreement, and Employee will not take any such property upon such termination. 

  

	 	(d)	 Employee recognizes that Corporation has received and in the future will receive information from third parties that is private proprietary information
subject to a duty on Corporation’s part to maintain
the confidentiality of such information and to use it only for certain limited purposes. Employee agrees that during the term of his employment and thereafter, Employee owes Corporation and such third parties a duty to hold all such private or
proprietary information received from third parties in the strictest confidence and not to disclose it, except as necessary in carrying out Employee’s work for Corporation consistent with Corporation’s agreement with such third party, and
not to use it for the benefit of anyone other than for Corporation or such third party consistent with Corporation’s agreement with such third party. 

  
 5 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	(e)	The obligations of Employee shall continue until such time as the Proprietary Information is publicly known, without fault on the part of the Employee.

  

	 	5.2	Nonsolicitation. 

  

	 	(a)	While employed by Corporation and for one year thereafter, Employee will not directly or indirectly engage or participate in the solicitation of or attempt to solicit,
or in any manner encourage, any employee, vendor, or consultant of Corporation to terminate or adversely alter his, her, or its relationship with Corporation in any manner whatsoever. 

 

	 	(b)	 By signing this Agreement, Employee acknowledges and agrees that the names, addresses, and product specifications of Corporation’s customers constitute Corporation Proprietary Information and
that the sale or unauthorized use or disclosure of this or any other Corporation Proprietary Information that Employee obtained during the course of this Agreement would constitute unfair competition with the Corporation. Employee promises not to
engage in unfair competition with Corporation either during the term of his employment or at any time thereafter. 

  

	 	(c)	 Employee will not during the course of his employment, or for a period of one year thereafter, either directly or indirectly call on, solicit, or take
away, or attempt to call on, solicit, or take away, any of Corporation’s customers with whom, Employee became acquainted during the course of employment with the Corporation. 

  

	 	5.3	Developed Information. 

  

	 	(a)	 Employee agrees to promptly disclose to Corporation, or any persons designated by it, all ideas, improvements, inventions, programs, formulae,
processes, techniques, discoveries, developments, designs, trade secrets, know-how, and data, whether or not patentable or registrable under copyright or similar statutes, and all designs, trademarks, and copyrightable works that Employee may solely
or jointly make or conceive or reduce to practice or learn during the period of his employment that (i) are within the scope of the services to be provided by Employee to the Corporation, and are related to or useful in the business of
Corporation or to Corporation’s actual or demonstrably anticipated research, design, development, experimental, production, financing, licensing, or marketing activity carried on by the Corporation, or (ii) result from tasks assigned
Employee by Corporation, or (iii) are funded by Corporation, or (iv) result from use of premises owned, leased, or contracted for by Corporation (hereinafter “Developed Information”). Any such disclosure by Employee shall be held
in confidence by Corporation and its employees. Employee’s disclosure obligation shall 

  
 6 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
continue for one year after termination of Employee’s employment with respect to anything that would be Developed Information if made, conceived, reduced to practice, or learned during the
term thereof. 

  

	 	(b)	This Agreement does not require assignment of any invention that qualifies fully for protection under Section 2870 of the California Labor Code (hereinafter
“Section 2870”), which provides as follows: 

  

					
	“2870. (a)	  	Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his rights in an invention to his employer shall not
apply to an invention that the employee developed entirely on his own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:
			
		  	(1)	  	Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the
employer; or
			
		  	(2)	  	Result from any work performed by the employee for the employer.
		
	(b)	  	To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under
subdivision (a), the provision is against public policy of this state and is unenforceable.”

 The Employee understands that he bears the full burden of proving to the Corporation that
Developed Information qualifies fully under Section 2870. By signing this Agreement, the Employee acknowledges receipt of a copy of this Agreement and of written notification of the provisions of Section 2870. 

 

	 	(c)	 Employee agrees that all Developed Information shall be the sole property of Corporation and its assigns and shall constitute “works made for
hire”, and Corporation and its assigns shall be the sole owner of all patents, trademarks, copyrights, and other rights in connection therewith. Employee hereby assigns to Corporation any rights Employee may have or acquire in all Developed
Information. Employee further agrees as to all Developed Information to assist Corporation in every proper way (but at Corporation’s expense) to obtain and from time to time enforce patents, trademarks, copyrights, and other rights with respect
to the Developed Information in any and all countries. To that end, Employee will perform any further acts and execute and deliver all documents for use in applying 

  
 7 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
for and obtaining such patents and copyrights thereon and enforcing same, as Corporation may desire, together with any assignments thereof to Corporation or persons designated by it
Employee’s obligation to assist Corporation in obtaining and enforcing patents, trademarks, copyrights, and other rights for the Developed Information in any and all countries shall continue beyond the termination of this Agreement, but
Corporation shall compensate Employee at a reasonable rate not to exceed US$200.00 per day for time actually spent by Employee at Corporation’s request on such assistance. In the event that Corporation is unable for any reason to secure
Employee’s signature to any lawful and necessary document required to apply for or prosecute any patent, trademark, copyright, or other right or protection with respect to Developed Information (including renewals, extensions, continuations,
divisions, or continuation in part thereof), Employee hereby irrevocably designates and appoints Corporation and its duly authorized officers and agents as Employee’s agents and attorneys-in-fact to act for and on Employee’s behalf and
instead of Employee to execute and file any such application(s) and to do all other lawfully permitted acts to further the prosecution and issuance of patents, trademarks, copyrights, or similar protections thereon with the same legal force and
effect as if executed by Employee. The Corporation shall also have the right to keep any and all Developed Information as trade secrets. 

  

	 	(d)	As a matter of record, Employee has attached as Exhibit A to this Agreement a complete list of all inventions, discoveries, developments, improvements, and trade
secrets that have been made or conceived or first reduced to practice by Employee alone or jointly with others prior to the date of execution of this Agreement that Employee desires to remove from the operation of this Agreement; and Employee
represents and covenants that such list is complete. If no such list is attached, Employee represents and covenants that he has made no inventions, discoveries, developments, improvements, or trade secrets at the time of signing of this Agreement
that are to be removed from the operation of this Agreement. Employee acknowledges and agrees that the Corporation is free to compete or generate Developed Information within the areas and types of products that may be described in any such list.

  

	 	5.4	Property of Others. 

  

	 	(a)	 Employee represents that Employee’s performance under this Agreement does not and will not breach any agreement to keep in confidence Proprietary
Information or trade secrets, if any, executed or otherwise acquired by Employee in confidence or in trust prior to this Agreement. There are no agreements, written or oral, conveying rights in any research conducted by Employee at any time.
Employee has not entered into, and 

  
 8 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
Employee agrees that Employee will not enter into, any agreement either written or oral in conflict herewith. 

 

	 	(b)	Employee represents, as part of the consideration for entering into this Agreement, that Employee has not brought and will not bring to Corporation, or use in the
performance of Employee’s responsibilities at Corporation, any equipment, supplies, facility, or trade secret information of any current or former employer or organization to which Employee provided services that are not generally available to
the public, unless Employee has obtained written authorization for their possession and use. 

  

	6.	Equitable Relief. Corporation and Employee acknowledge that any breach or threatened breach of the provisions of Paragraphs 2 and 5 of this Agreement may result
in immediate and irreparable harm to the other for which there will be no adequate remedy at law, and that Employee or Corporation will be entitled to equitable relief to restrain the other from violating the terms of these paragraphs, including
without limitation temporary restraining orders and injunctions to cease and desist all unauthorized use and disclosure of Proprietary Information and other impermissible activities covered by these paragraphs, without posting bond or other
security. Employee and Corporation shall be entitled to recover from the other any costs or expenses incurred in successfully obtaining relief against breach of this Agreement, including but not limited to legal fees and costs. Nothing in these
paragraphs shall be construed as prohibiting Employee or Corporation from pursuing any other remedies available to them for such a breach or threatened breach, including the recovery of damages. All other relief sought by either party, whether
damages or otherwise, must be sought through the Arbitration process described in subparagraph 8.15. 

  

	7.	Continuing Obligations. Employee’s obligations under this Agreement, and specifically but without limitation the obligations of Paragraphs 5 and 6 above,
shall continue in effect, even after termination of his employment with the Corporation, and the obligations shall be binding on Employee’s assigns, administrators, and other legal representatives. 

 

	8.	General. 

  

	 	8.1	Counterparts. This Agreement may be executed in any number of counterparts by the parties hereto and will become effective and binding upon the parties at such
time as all of the signatories hereto have signed a counterpart of this Agreement. All counterparts so executed shall constitute one Agreement binding upon all parties hereto, notwithstanding that all the parties are not signatory to the original of
the same counterpart. Each of the parties hereto shall sign a sufficient number of counterparts so that each party will receive a fully executed original of this Agreement. 

 

	 	8.2	Definitions. For purposes of this Agreement, the following terms shall have the meaning set forth in this paragraph: 

  
 9 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	8.2.1	Total Disability. Employee shall be totally disabled when Employee is not able to perform the major duties of his position because of sickness or injury as shall
be determined by a licensed physician selected by the Board of Directors of Corporation. 

  

	 	8.3	Time of Essence. Time is expressly declared to be of the essence of this Agreement and of every provision thereof in which time is an element.

  

	 	8.4	Continuing Cooperation. Each party to this Agreement shall be obligated hereunder to do such other and further acts, including without limitation, the execution
of any documents or instruments, which are reasonable or may be necessary or convenient in carrying out the purposes and intent of this Agreement. 

  

	 	8.5	Governing Law. The rights and obligations of the parties and the interpretation and performance of this Agreement shall be governed by the law of California,
excluding its conflict of laws rules. 

  

	 	8.6	Benefit and Burden. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, representatives, successors
and permissible assigns. 

  

	 	8.7	Severability. In the event that any covenant, condition, or other provision herein contained is held to be invalid, void, or illegal by any court of competent
jurisdiction, the same shall be deemed severable from the remainder of this Agreement, and shall in no way affect, impair, or invalidate any other covenant, condition, or other provision herein contained. If such condition, covenant, or other
provision shall be deemed invalid due to its scope or breadth, such covenant, condition, or other provision shall be deemed valid to the extent of the scope or breadth permitted by law. 

 

	 	8.8	Waiver and Amendment. No breach of any provision hereof can be waived unless in writing. Waiver of any one breach of any provision hereof shall not be deemed to
be a waiver of any other breach of the same or any other provision hereof. This Agreement may be amended only by a written agreement executed by the parties in interest at the time of the modification. 

 

	 	8.9	Captions and Interpretation. Paragraph titles or captions contained herein are inserted as a matter of convenience and for reference, and in no way define,
limit, extend, or describe the scope of this Agreement or any provision hereof. No provision in this Agreement is to be interpreted for or against either party because that party or his legal representative drafted such provision.

  

	 	8.10	 Notices. Any notice or notices provided for in this Agreement must be in writing and may be personally served upon the party or parties to
receive such notice either within or outside of the State of California, or may be deposited in the United States mail, postage fully prepaid, registered or certified mail, return

  
 10 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
receipt requested, and addressed to the party or parties to be served at the addresses indicated after their signatures below. 

 

	 	8.11	Number and Gender. Whenever the singular number is used herein and .when required by the context, the same shall include the plural, and the masculine, feminine,
and neuter genders shall each include the others, and the word “person” shall include corporation, firm, partnership, joint venture, trust or estate. 

 

	 	8.12	Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof, fully supersedes any and
all prior understandings, representations, warranties, and agreements between the parties hereto, or any of them, pertaining to the subject matter hereof and may be modified only by written agreement signed by all of the parties hereto. Each party
to this Agreement warrants that in executing this Agreement, such party has relied upon legal advice from counsel of that party’s choice, or has had the opportunity to hire counsel but has chosen not to do so; that the terms of this Agreement
have been completely read, and are fully understood; that this Agreement is not executed by reason of representations or inducements not contained within this Agreement; and that each party’s execution of this Agreement is free and voluntary.
Each party to this Agreement further represents and warrants that such party is not restricted or prohibited, contractually or otherwise, from entering into and fulfilling the terms of this Agreement, and that the execution and performance of this
Agreement is not a violation or breach of any other Agreement between such party and any other person or entity. 

  

	 	8.13	Assignability. Neither this Agreement nor any rights hereunder shall be assigned by Employee. It is expressly acknowledged by Employee that Corporation may at
any time assign any or all of its rights and duties with respect to Employee hereunder to any corporation that purchases all or substantially all of Corporation’s voting stock or assets, or to any subsidiary or other affiliate of Corporation,
with no further obligation of any description whatsoever to Employee thereafter. Employee agrees to accept such assignment on such terms and agrees that thereupon all of Employee’s rights and duties hereunder shall be with respect to the
assignee corporation, except that Employee shall remain obligated to Corporation to observe the terms of Paragraphs 5, 6 and 7 hereof regardless of such assignment. 

 

	 	8.14	Exhibits. All documents identified herein as Exhibits shall be determined to be fully incorporated herein at each point such Exhibits are referred to, whether or
not such Exhibits are actually attached hereto. 

  

	 	8.15	 In entering into this Agreement, Employee and Corporation agree to accept and be bound by the dispute resolution process set out herein. Except as
provided in Section 6 above, this process shall cover any and all grievances that arise out of, or are directly or indirectly related to, this Agreement, Employee’s employment at the Corporation, or the termination of Employee’s
employment at the 

  
 11 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
Corporation, to the extent permitted by law. Employee agrees that this process covers any and all grievances he may have against the Corporation and/or any of its officers, directors,
shareholders, employees, representatives, or agents. As used herein, the word “grievance” or “grievances” shall mean any claims, grievances, causes of action, disputes and disagreements whether they arise out of contract, tort or
statute, including but not limited to claims of violation of Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act, or the Americans with Disabilities Act, or any state equivalent prohibiting
discrimination against or harassment of employees. 

 Any grievance that can not be resolved informally between
Employee and Corporation, shall be submitted to binding arbitration and shall be subject to the following terms: 
  

	 	(a)	It shall be submitted to the American Arbitration Association (“AAA”) in conformance with the AAA’s Rules of Practice and Procedure for Arbitration
Hearings. Arbitrations in California shall follow the AAA’s California employment Dispute Resolution Rules. 

  

	 	(b)	Such arbitration shall be binding on both the Corporation and Employee, with no right of appeal, except as provided by law. 

 

	 	(c)	To the extent permitted by law, the costs of arbitration will be paid equally by the Corporation and Employee, but the arbitrator(s) may assess the costs of arbitration
against the losing party. Except as provided below, each side will bear its own attorney fees and costs in any arbitration proceeding. 

  

	 	(d)	If Employee or Corporation attempts by any legal proceeding to set aside the award made by the arbitrator(s), or attempts to modify, set aside, or seek
interpretation of this provision of this Agreement, the prevailing party in such proceeding will be entitled to an award of reasonable attorney fees and costs. 

 

	 	(e)	In entering into this Agreement and accepting resolution of any grievance under this provision, it is acknowledged and agreed by Employee that:

  

	 	(i)	The dispute resolution process set forth above is and will be the sole and exclusive remedy for any grievance that Employee may have against Corporation, and any of its
officers, directors, shareholders, employees, representatives or agents, or which they may have against Employee, except as provided in Section 6 hereof; and 

 

	 	(ii)	 The dispute resolution process is intended to cover any and all grievances that arise out of, or are directly or indirectly related

  
 12 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

	 	
to this Agreement, Employee’s employment at the Corporation, or the termination of his employment with the Corporation; and 

 

	 	(iii)	Employee understands that in agreeing to the dispute resolution process set forth herein he is giving up the right to seek redress of grievances in a civil lawsuit or
administrative action, which may include the right to a trial by jury. Each party agrees that if a party refuses to submit to arbitration after agreeing to this provision, the arbitrators may enter an award against such party without the
party’s participation in the proceedings. 

  

	 	8.16	Indemnity. In the event Employee was, is, or becomes a participant in, or is threatened to be made a participant in, a proceeding by reason of (or arising in
part out of) an indemnifiable event, Corporation shall indemnify Employee from and against any and all expenses to the fullest extent permitted by law, as the same exists or may hereafter be amended or interpreted. 

  
 13 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

 IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the day and year first
hereinabove written. 
  

							
	DATED: March 31, 2003	 		 	CORPORATION
			
		 		 	 DIVERSIFIED COLLECTION SERVICES, INC., A
 California Corporation

				
		 		 	By:	 	 /s/ James B. A. Tracey, II

		 		 		 	JAMES B. A. TRACEY, II
		 		 		 	Chief Executive Officer
			
	DATED: March 31, 2003	 		 	EMPLOYEE
			
		 		 	 DIVERSIFIED COLLECTION SERVICES, INC., A
 California Corporation

			
		 		 	 /s/ Jon D. Shaver

		 		 	JON D. SHAVER

  
 14 

 EMPLOYMENT AGREEMENT 

DSC, Inc. 
 and Jon
D. Shaver 
  

 EXHIBIT “A” 

[To Be Attached] 
 Pursuant to
Section 4.3 (d) of the Employment Agreement, Employee hereby acknowledges that he has made no inventions, discoveries, developments, improvements or trade secrets that are to be removed from the operation of the Agreement. 

  
 15 

 EXECUTION 
 FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT 
 THIS FIRST AMENDMENT, dated
as of January 8, 2004 (this “Amendment”), is made to the Employment Agreement (the “Agreement”), dated as of March 31, 2003, between Diversified Collection Services, Inc., a California corporation
(“Corporation”) and Jon D. Shaver (“Employee”). Terms used and not otherwise defined herein have the meanings accorded to such terms in the Agreement. 

WHEREAS, Corporation and Employee have previously entered into the Agreement; and 

WHEREAS, the parties desire to amend certain provisions of the Agreement, including, without limitation, changing Employee’s
position from Executive Vice President and Chief Operating Officer to Vice Chairman and Executive Vice President for Business Development of Corporation. 
 NOW, THEREFORE, in consideration of the premises and of the mutual representations, warranties, and covenants which are to be made and performed by the respective parties, the parties hereby agree as
follows: 
 1. Amendments. 
 (a) Section 2 of the Agreement shall be deleted in its entirety and the following shall be inserted in lieu thereof: 

“2. Scope. During the term of the Agreement, Corporation hereby employs Employee to render services to
Corporation as Vice Chairman and Executive Vice President for Corporate Development of Corporation and in such other additional capacities as Corporation’s Board of Directors (the “Board”), in its sole discretion, may designate from time to time, subject in
each case, to the overall direction and authority of the Board. Employee shall report to and perform such duties commensurate with his position as Vice Chairman as may be specified from time to time by the Board. Employee shall report to and perform
such duties commensurate with his position as Executive Vice President for Corporate Development as may be specified from time to time by the President and/or Chief Executive Officer of Corporation (“CEO”). Employee shall devote his entire
time, skill, labor, efforts, and attention to the employment with Corporation. The nature of the employment and Employee’s powers and duties in the capacity of Vice Chairman and Executive Vice President for Corporate Development shall be
determined from time to time by the Board and CEO, respectively. During the term of this agreement, Employee shall not, directly or indirectly, alone or as a member of a partnership or as an officer, director or shareholder of any other corporation
(other than any which are owned by or affiliated with Corporation), be engaged in or concerned with any other commercial duties or pursuits whatsoever, except with the written consent of the Board and CEO.” 

(b) Section 3.2 of the Agreement shall be deleted in its entirety and the following shall be inserted in lieu thereof: 

 “3.2. Corporation shall pay Employee a quarterly salary bonus not to exceed TWENTY-FIVE
THOUSAND DOLLARS AND 00/100 CENTS ($25,000.00) for each quarter or the fiscal year of the Corporation based on Employee’s attainment of specified priorities, goals, and objectives established for Employee by Corporation from time to time
(“Performance Bonus”). Employee acknowledges and agrees that the terms and conditions of said priorities, goals and objectives are dynamic and will reflect the business environment then existing. Additionally, Corporation’s
“back-end” bonus program will be terminated and in lieu thereof, Employee will be eligible to earn an annual supplemental bonus each year (or pro rated portion thereof), in the amount and based upon the achievement by Employee and
Corporation of certain target goals set forth by from time to time by the Board, which goals are initially set forth on Exhibit A attached hereto.” 
 2. Full Force and Effect. Except as expressly amended or modified hereby, the Agreement will and does remain in full force and effect. The Agreement will become effective if and only if the
transactions contemplated by that certain Stock Purchase Agreement with DCS Holdings, Inc, DCS Business Services, Inc. and certain other parties thereto, as in effect from time to time, are consummated. Notwithstanding the foregoing, however, that
certain Change of Control Severance Agreement, dated July 31, 2003, by and between Employee and DCS Business Services, Inc., a Nevada corporation, as amended from time to time (the “Change in Control Agreement”) shall not be
superceded by this Amendment and the Change of Control Agreement shall remain in full force and effect and shall govern to the extent of any conflict. 
 3. Governing Law. All questions concerning the construction, validity, and interpretation of this Amendment shall be governed by and construed in accordance with the domestic laws of the State of
California, excluding its conflict of laws rules. 
 4. Counterparts. This Amendment may be executed simultaneously in
two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Amendment. 

 IN WITNESS WHEREOF, the Parties have executed this First Amendment to the Employment
Agreement as of the date first written above. 
  

			
	DIVERSIFIED COLLECTION SERVICES, INC.
		
	By:	 	 /s/ Lisa Im

	Name:	 	Lisa Im
	Its:	 	President
	
	 /s/ Jon Shaver

	John Shaver

 Signature Page to Jon Shaver First Amendment to Employment Agreement 

 

 Exhibit A: Jon Shaver Supplemental Bonus Terms (Replacement for Back-End Bonus)

 Supplemental bonuses will be determined by the following: 

 

	 	1.	In order to achieve a Supplemental bonus for a particular year, employee must remain employed at end of that fiscal year. In addition, employee must achieve 80% of his
individual annual objectives (which shall be tied to the company’s objectives and established by the Company’s board from time to time). 

  

	 	2.	Subject to the catch-up provision below (see # 6), the maximum potential bonus in a given year will be the employee’s base salary. 

 

	 	3.	Supplemental bonus targets will be derived from Revenue and EBITDA targets in the management plan (see Appendix to Shareholder Note) for 2004 through 2008, as adjusted
for acquisitions and dispositions based on board-approved projections. For the purpose of bonus calculations, 2003 EBITDA (both the target amount and the actual amount) will be adjusted EBITDA after add-backs as agreed upon by the company’s
senior lenders. Performance will be measured as actual vs. targeted performance for the average of the two trailing years, except as noted below in this paragraph. For example, in 2005, the bonus will be determined by measuring the average of actual
Revenue and EBITDA for 2005 and 2004 against the average of the management plan for Revenue and EBITDA for 2005 and 2004. However, if the current year’s actual Revenue or EBITDA is lower than the prior year’s corresponding actual Revenue
or EBITDA, the current year figure will be used instead of the average (for Revenue or EBITDA or both, whichever of Revenue or EBITDA is lower in the current year). 

 

	 	4.	Performance will be measured as a percentage of target average Revenue and EBITDA. Whichever of Revenue and EBITDA is lower relative to target will be used for the
bonus calculation. For example, if ‘average Revenue is 110% of target and EBITDA is 105% of target, management will be deemed to have achieved 105% of plan (the “Percent Achieved”). 

 

	 	5.	In order to achieve any Supplemental bonus, the company must achieve more than 100% of its plan. To achieve the maximum bonus; the company must achieve 125% of its
plan. Assuming that the Percent Achieved exceeds 100%, the bonus will be calculated by interpolating between the milestones in the chart below: 

  

																									
	 Percent Achieved:
	  	 	100	% 	 	 	105	% 	 	 	110	% 	 	 	115	% 	 	 	120	% 	 	 	125	% 
	 Bonus % (of Base Salary) Earned:
	  	 	30	% 	 	 	40	% 	 	 	50	% 	 	 	60	% 	 	 	75	% 	 	 	100	% 

  

	 	6.	Catch-up Provision: If the Percent Achieved exceeds 125% for a particular year, the bonus may be greater than I00% that year only to the extent that the cumulative
bonus (including any prior catch-up bonuses) in prior years was less than 100% of base salary. The formula for circumstances where catch-up bonuses are earned because the Percent Achieved exceeds 125% can be stated as follows:

 Bonus (if Percent Achieved > 125%) = lesser of a) Percent Achieved
divided by 125% times current year base salary and b) the sum of i) current year base salary and ii) the cumulative dollar difference between base salaries in prior years (since inception of this bonus plan) and cumulative bonuses earned.

 Obviously, even if the catch-up bonus does not “fully” recognize performance ahead of plan in the current year,
because performance is measured on the basis of a 2-year average (other than the exception noted in #3 above), the benefit may still be recognized in the following year.Director Nomination Agreement

 Exhibit 10.12 
 DIRECTOR NOMINATION AGREEMENT 
 This DIRECTOR NOMINATION AGREEMENT (this
“Agreement”) is made as of July 20, 2012 by and between: 
  

	 	(i)	Performant Financial Corporation, a Delaware corporation (the “Company”); and 

 

	 	(ii)	Parthenon DCS Holdings, LLC, a Delaware limited liability company (the “Investor”). 

RECITALS 

A. WHEREAS the Investor and the Company entered into an Investment Agreement dated as of January 8, 2004 (the “Former
Agreement”); 
 B. WHEREAS the Company is contemplating an underwritten initial public offering of shares of its Common
Stock registered on Form S-1 under the Securities Act (the “IPO”); 
 C. WHEREAS, in connection with the IPO,
the parties to the Former Agreement have agreed to terminate the Former Agreement; and 
 D. WHEREAS, conditioned upon the
termination of the Former Agreement, the Company and the Investor desire to enter into this Agreement to set forth their agreements regarding Investor’s right to designate Board members following the IPO. 

NOW THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. EFFECTIVENESS; DEFINITIONS. 

1.1. Effective Date. This Agreement shall become effective, and the Former Agreement shall terminated and be of no further force
or effect, upon the consummation of the closing of the IPO (the “Effective Date”). 
 1.2. Definitions. Certain
capitalized terms used in this Agreement shall have the meaning set forth in Section 5 hereof. 
 2. BOARD REPRESENTATION.

 2.1. Right to Designate. From and after the Effective Date hereof until the provisions of this Section 2.1
cease to be effective, Investor shall be entitled to designate such number of persons for election to the Board as is equal to the nearest whole number greater than the product obtained by multiplying (a) the percentage of the total voting
power of the then outstanding Common Stock then Beneficially Owned by the Parthenon Group and (b) the number of positions, including any vacancies, on the Board (each such person, a “Nominee”); provided that a reduction in the
percentage of total voting power Beneficially Owned by the Parthenon Group shall not shorten the term of any incumbent director. 

  
 1 

 2.2 Expansion of Board and Appointment; Classification; Initial Designees of
Investor. Following Investor’s designation of a Nominee, the Company shall take such steps, if any, as are necessary to increase the size of the Board to accommodate the Nominee, and the directors then in office will elect such Nominee to
fill the resulting vacancy and determine the class in which such Nominee shall be placed in accordance with the Company’s certificate of incorporation. At the Effective Date, the Board shall be comprised of seven (7) members and the
initial Nominees of Investor and the Class in which each shall be allocated are as follows: Todd R. Ford (Class I); Brian P. Golson (Class I); William D. Hansen (Class II); Jeffrey S. Stein (Class III ); and William C. Kessinger (Class III).
Investor shall not be obligated to designate all (or any) of the directors it is entitled to designate pursuant to this Agreement, but the failure to do so shall not constitute a waiver of its rights hereunder. 

2.3 Subsequent Nomination of Persons Designated by Investor. The Nominating Committee of the Board shall recommend to the Board
that any Nominee be nominated and recommended by the Board to stockholders for election as a director at each meeting of stockholders at which directors of the class in which such Nominee was or is to be placed are elected and the Board shall
recommend any Nominee to the stockholders for election as a director at each meeting of stockholders at which directors of the class in which such person was or is to be placed are elected. The Company shall use its best efforts to cause the
election of each person designated by Investor, including by including each such Nominee in the proxy statement prepared by management of the Company in connection with soliciting proxies for every meeting of stockholders called for the election of
such Nominee’s class of directors, and at every postponement or adjournment thereof, and on every action or approval by written consent of the stockholders of the Company or the Board with respect to the election of such Nominee’s class of
directors. 
 2.4 Replacement of Directors Designated by Investor. In the event that any Nominee shall cease to serve as
a director for any reason, the vacancy resulting therefrom shall be not be filled until the Investor has designated a replacement and the vacancy shall be filled as soon as practicable following Investor’s designation of a replacement pursuant
to the above provisions, unless Investor has specifically waived in writing its rights (temporarily or permanently) to designate a replacement. For the avoidance of doubt, a reduction in the percentage of total voting power of the outstanding Common
Stock Beneficially Owned by the Parthenon Group shall not impact the Investor’s right to fill a vacancy resulting from any Nominee ceasing to serve as a director for any reason. 

2.5 Committees. From and after the Effective Date hereof until the provisions of this Section 2.5 cease to be effective,
Investor shall have the right to designate a number of members of each committee of the Board equal to the nearest whole number greater than the product obtained by multiplying (a) the percentage of the total voting power of the then
outstanding Common Stock then Beneficially Owned by the Parthenon Group and (b) the number of positions, including any vacancies, on the applicable committee, provided that any such designee shall be a director and shall be eligible to serve on
the applicable committee under applicable law or listing standards. Any additional members shall be determined by the Board. 

2.6 Termination of Investor’s Right to Designate. At such time as the Parthenon Group ceases to Beneficially Own Common Stock
representing at least 10% of the total voting 

  
 2 

 
power of the then outstanding Common Stock, Investor shall no longer be entitled to designate any person for election to the Board or to designate members of committees of the Board pursuant to
this Agreement; provided that a reduction in the percentage of total voting power of the outstanding Common Stock Beneficially Owned by the Parthenon Group shall not shorten the term of any incumbent director. 

3. REMEDIES. 
 3.1.
Specific Performance. The parties shall have all remedies available at law, in equity or otherwise in the event of any breach or violation of this Agreement or any default hereunder. The parties acknowledge and agree that in the event of any
breach of this Agreement, in addition to any other remedies which may be available, each party hereto shall be entitled to specific performance of the obligations of the other party hereto and, in addition, to such other equitable remedies
(including preliminary or temporary relief) as may be appropriate in the circumstances. 
 4. AMENDMENT, TERMINATION, ETC. 

4.1. Written Modifications. This Agreement may not be orally amended or modified and no oral waiver of any of its terms shall be
effective. This Agreement may be amended or modified and the provisions hereof may be waived, only by an agreement in writing signed by the Company and the Investor. Each such amendment, modification or waiver shall be binding upon each party
hereto. 
 4.2. Withdrawal from Agreement. Investor may at any time elect, by giving written notice of withdrawal to the
Company, to terminate this Agreement. From the date of delivery of such withdrawal notice, the Investor shall cease to be a party to this Agreement and shall no longer be subject to the obligations of this Agreement or have rights under this
Agreement. 
 4.3. Termination. Except as provided in the first sentence of Section 4.4, this Agreement shall
terminate upon the occurrence of any of the following: (a) at such time as Investor is no longer entitled to designate any director to the Board pursuant to Section 2.6 hereof; or (b) upon the Investor’s notice of withdrawal from
this Agreement pursuant to Section 4.2 hereof. 
 4.4. Effect of Termination. No termination under this Agreement
shall relieve any Person of liability for a material breach hereof prior to such termination. 
 5. DEFINITIONS. For purposes of this
Agreement: 
 5.1. Certain Matters of Construction. In addition to the definitions referred to or set forth below in this
Section 5: 
 (i) The words “hereof’, “herein”, “hereunder” and words of
similar import shall refer to this Agreement as a whole and not to any particular Section or provision of this Agreement, and reference to a particular Section of this Agreement shall include all subsections thereof; 

(ii) The word “including” shall mean including, without limitation; 

  
 3 

 (iii) Definitions shall be equally applicable to both nouns and verbs and
the singular and plural forms of the terms defined; and 
 (iv) The masculine, feminine and neuter genders shall
each include the other. 
 5.2. Definitions. The following terms shall have the following meanings: 

“Affiliate” shall mean, respect to any Person, any other Person that controls, is controlled by, or is under common
control with, such Person; the term “control” as used in this definition, means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise, and “controlled” and “controlling” shall have meanings correlative to the foregoing. 

“Beneficially Own” shall mean that a specified Person has or shares the right, directly or indirectly, through any
contract, arrangement, understanding, relationship or otherwise, to vote shares of capital stock of the Company, and “Beneficially Owned” shall have a correlative meaning. 

“Board” shall mean the board of directors of the Company. 

“business day” shall mean any day that is not a Saturday, a Sunday or other day on which banks are required or
authorized by law to be closed in the City of New York. 
 “Commission” shall mean the Securities and Exchange
Commission. 
 “Common Stock” shall mean the common stock, $0.01 par value per share, of the Company.

 “Company” shall have the meaning set forth in the Preamble. 

“Effective Date” shall have the meaning set forth in Section 1.1. 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as in effect from time to time. 

“Former Agreement” shall have the meaning set forth in the Recitals. 

“Investor” shall have the meaning set forth in the Recitals. 

“IPO” shall have the meaning set forth in the Recitals. 

“Parthenon Group” shall mean PCP Managers, LLC and its successors and Affiliates. A “member” of the Parthenon
Group shall mean any Person who is part of the Parthenon Group. 
 “Person” shall mean any individual,
partnership, corporation, company, association, trust, joint venture, limited liability company, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof. 

“Securities Act” shall mean the Securities Act of 1933, as in effect from time to time. 

  
 4 

 6. MISCELLANEOUS. 
 6.1. Authority: Effect. Each party hereto represents and warrants to and agrees with each other party that the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized on behalf of such party and do not violate any agreement or other instrument applicable to such party or by which its assets are bound. This Agreement does not, and shall not be construed to, give rise
to the creation of a partnership among any of the parties hereto, or to constitute any of such parties members of a joint venture or other association. 
 6.2. Notices. Any notices and other communications required or permitted in this Agreement shall be effective if in writing and (a) delivered personally, (b) sent by facsimile, or (c)
sent by overnight courier, in each case, addressed as follows: 
 If to the Company, to: 

Performant Financial Corporation 
 333 North Canyons Parkway, Suite 100 
 Livermore, CA 94551 

Facsimile: 

Attention: Chief Executive Officer 
 with copies to: 
 Pillsbury Winthrop Shaw Pittman LLP 50 

Fremont Street 

San Francisco, CA 94105 
 Facsimile: (415) 983-1200 
 Attention: Blair W. White 

If to Investor, to: 
 Parthenon Capital Partners 
 Four Embarcadero Center, Suite 3610 

San Francisco, CA 94111 
 Facsimile: (415) 913-3913 
 Attention: William C. Kessinger and Brian P.
Golson 
 with copies to: 
 Kirkland & Ellis LLP 
 300 N. LaSalle 

Chicago, IL 60654 

Facsimile: (312) 862-2200 
 Attention: Jeffrey Seifman 
 Notice to the holder of record of any shares of
capital stock shall be deemed to be notice to the holder of such shares for all purposes hereof. 
 Unless otherwise specified
herein, such notices or other communications shall be deemed effective (a) on the date received, if personally delivered, (b) on the date received if delivered by 

  
 5 

 
facsimile on a business day, or if not delivered on a business day, on the first business day thereafter and (b) two business days after being sent by overnight courier. Each of the parties
hereto shall be entitled to specify a different address by giving notice as aforesaid to each of the other parties hereto. 

6.3. Binding Effect, Etc. This Agreement constitutes the entire agreement of the parties with respect to the subject matter,
supersedes in its entirety all prior or contemporaneous oral or written agreements or discussions with respect to its subject matter and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
permitted assigns. Neither party hereto may assign any of its respective rights or delegate any of its respective obligations under this Agreement without the prior written consent of the other party hereto, and any attempted assignment or
delegation in violation of the foregoing shall be null and void; provided, however, that Investor shall be entitled to assign its rights hereunder to any member of the Parthenon Group without the prior written consent of the Company so
long as such member has agreed in writing to be bound by the terms of this Agreement. 
 6.4. Descriptive Heading. The
descriptive headings of this Agreement are for convenience of reference only, are not to be considered a part hereof and shall not be construed to define or limit any of the terms or provisions hereof. 

6.5. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of
which taken together shall constitute one instrument. 
 6.6. Severability. In the event that any provision hereof would,
under applicable law, be invalid or unenforceable in any respect, such provision shall be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law. The
provisions hereof are severable, and in the event any provision hereof should be held invalid or unenforceable in any respect, it shall not invalidate, render unenforceable or otherwise affect any other provision hereof. 

6.7. No Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, the Company and Investor covenant,
agree and acknowledge that no recourse under this Agreement shall be had against any current or future director, officer, employee, general or limited partner or member of Investor or of any Affiliate thereof, as such, whether by the enforcement of
any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be
incurred by any current or future director, officer, employee, general or limited partner or member of Investor or any Affiliate thereof, as such, for any obligation of Investor under this Agreement. 

7. GOVERNING LAW. 
 7.1.
Governing Law. This Agreement and all claims arising out of or based upon this Agreement or relating to the subject matter hereof shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware
without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction. 

  
 6 

 7.2. Consent to Jurisdiction. Each party to this Agreement, by its execution hereof,
(a) hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the purpose of any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or
investigation arising out of or based upon this Agreement or relating to the subject matter hereof, (b) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, and agrees not to allow any of its subsidiaries to
assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such
proceeding brought in one of the above-named courts is improper, or that this Agreement or the subject matter hereof or thereof may not be enforced in or by such court and (c) hereby agrees not to commence or maintain any action, claim, cause
of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating to the subject matter hereof other than before one of the above-named courts nor to make any motion or
take any other action seeking or intending to cause the transfer or removal of any such action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court other than one of the above-named
courts whether on the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, any party to this Agreement may commence and maintain an action to enforce a judgment of any of the above-named courts in any court of competent
jurisdiction. Each party hereto hereby consents to service of process in any such proceeding in any manner permitted by Delaware law, and agrees that service of process by registered or certified mail, return receipt requested, at its address
specified pursuant to Section 6.2 hereof is reasonably calculated to give actual notice. 
 7.3. WAIVER OF JURY
TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT
OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 7.3 CONSTITUTES A MATERIAL INDUCEMENT
UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. EITHER PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 7.3 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE OTHER PARTY TO THE WAIVER OF ITS
RIGHT TO TRIAL BY JURY. 
 7.4. Exercise of Rights and Remedies. No delay of or omission in the exercise of any right,
power or remedy accruing to any party as a result of any breach or default by the other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default,
or of any similar breach or default occurring later; nor shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring before or after that waiver. 

  
 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]