Document:

Converted by EDGARwiz

Exhibit 10.2

2016 PARAMETRIC PHANTOM INCENTIVE PLAN

1.

Purpose of the Plan

The purpose of this Plan is to create a long-term incentive program for key employees of Parametric Portfolio Associates LLC and its wholly-owned subsidiary Parametric Risk Advisors LLC (collectively “Parametric” or the “Company”).  Awards under the Plan are intended to attract, retain and motivate key professionals and provide an opportunity for those employees to share in the growth of the Company.

2.

Definitions

“Annual Valuation” has the meaning ascribed to it in Section 4.3. 

“Award” means a grant of one or more Incentive Units made by EVA to a Participant under, and pursuant to the terms of, the Plan.

“Beneficiary” means the person or persons designated in writing, in the form and manner prescribed by EVA, by a Participant to receive payments under the Plan in the event of such Participant’s death or, in the absence of such a designation, such Participant’s estate.

“Code” means the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

“Company” means Parametric Portfolio Associates LLC and its wholly-owned subsidiary Parametric Risk Advisors LLC, both limited liability companies in which Eaton Vance Corp. has a controlling interest, indirectly through EVA.

“Disability” or “Disabled” means the inability of a Participant, as determined by EVA, to perform the essential functions of his or her regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected to last) for a period of six (6) consecutive months.  At the request of the Participant or his or her personal representative, EVA’s determination that the Disability of the Participant has occurred shall be certified by two physicians mutually agreed upon by such Participant, or his or her personal representative, and the Company and failing such independent certification (if so requested by the Participant), the Participant’s termination shall be deemed a termination by the Company without cause and not a termination by reason of the Participant’s Disability.  

“EVA” means Eaton Vance Acquisitions, a Delaware partnership.

“EVC Omnibus Plan” means the Eaton Vance Corp. 2013 Omnibus Incentive Plan, as amended, or any similar successor plan.

“Fair Market Value” means, with respect to a Unit, the market value of one Unit as of a Valuation Date, as determined by EVA in accordance with Section 4.3.  

“Fiscal Year” means the period November 1 through October 31.

“Grant Date” means the date as of which EVA grants an Award to a Participant, as stated in the applicable Award agreement.  Grant Dates shall generally be the first business day of the Company’s Fiscal Year.

“Incentive Unit” means the right to receive, upon vesting of such Incentive Unit, an amount equal to the then Fair Market Value of one Unit.

“Interim Valuation” has the meaning ascribed to it in Section 4.3.

“Operating Agreement” means the Operating Agreement of Parametric Portfolio Associates LLC as it may be amended from time to time.

“Participant” means a person who is eligible to participate in the Plan and to whom an Award has been granted pursuant to the Plan, and shall include, to the extent relevant in the context, a Participant’s Beneficiary.

“Plan” means this 2016 Parametric Phantom Incentive Plan, as it may be amended from time to time.

“Unit” means a unit of Parametric Portfolio Associates LLC as described in the Operating Agreement.

 “Valuation Date” means the first day of a Fiscal Year or such other dates as may be determined by EVA.

“Vesting Date” means a date after the Grant Date upon which all or a portion of an Award vests.

3.

Eligibility

All of the Company’s employees are eligible to be granted Awards under the Plan.

4.

Administration and Delegation

4.1.

Administration of the Plan. The Plan will be administered by EVA as the majority owner of Parametric Portfolio Associates LLC and the indirect majority owner of Parametric Risk Advisors LLC.  EVA shall have authority to grant Awards (subject to the approval of the Compensation Committee of the Board of Directors of Eaton Vance Corp. of the corresponding grant of an Other Stock-Based Award (as defined in the EVC Omnibus Plan) under the EVC Omnibus Plan contemplated by Section 5.3 hereof) and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan it shall deem advisable. EVA may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency. All decisions by EVA shall be made in its sole discretion and shall be final and binding on all persons having or claiming any interest in the Plan or in any Award. No person acting pursuant to the authority delegated by EVA shall be liable for any action or determination relating to or under the Plan made in good faith.

- 2 -

4.2.

Appointment of Committees.  To the extent permitted by applicable law, EVA may delegate any or all of its powers under the Plan to one or more committees. 

4.3.

Determination of Fair Market Value. 

(a)  

Annual Valuations.  EVA shall in good faith determine the Fair Market Value of a Unit as of the first day of a Fiscal Year by utilizing an annual appraisal, conducted by an independent third party within a reasonable period prior to or closely following the first day of such Fiscal Year.  The annual appraisal will utilize two valuation techniques: a discounted earnings model and the guideline company method.  These two valuation methodologies will utilize appropriate discount rates as well as relevant investment management industry market multiples.  EVA shall review the results of such annual appraisal and, in its discretion, make such adjustments thereto in determining the Fair Market Value, with the Fair Market Value for a Unit as of the first day of such Fiscal Year to be set forth in an annual report to Participants of the Plan (the “Annual Valuation”).  The Annual Valuation shall be final and binding on EVA, the Company and any Participant (or Beneficiary), subject to the dispute resolution procedure listed in Section 4.3(c).

(b)

Interim Valuations.  In the case of death or Disability of a Participant, or at other times in EVA’s sole discretion, EVA may establish an interim Valuation Date in order to facilitate prompt payment following death or Disability, or to facilitate additional Awards.  EVA shall in good faith determine the Fair Market Value of a Unit as of an interim Valuation Date which determination may be made utilizing the method described in Section 4.3(a) or any other reasonable method as determined by EVA in its sole discretion, and shall issue a report to the affected Participant (or his or her Beneficiary) setting forth the interim valuation (the “Interim Valuation”). The Interim Valuation shall be final and binding on EVA, the Company and any Participant (or Beneficiary), subject to the dispute resolution procedure listed in Section 4.3(c).

(c)

Disputes.  If a Participant disagrees with the Fair Market Value of a Unit set forth in the Annual Valuation (or an affected Participant or Beneficiary disagrees with the Fair Market Value of a Unit set forth in the Interim Valuation), the Participant may dispute such Fair Market Value by notifying EVA within 30 days of the distribution of such Annual Valuation (or Interim Valuation) and providing at the Participant’s or Beneficiary’s expense an alternative appraisal of a Unit prepared by a nationally recognized valuation firm within 120 days of the distribution of the Annual Valuation (or Interim Valuation).  EVA and the Participant shall then jointly select an arbitrator that is recognized as a valuation expert to determine the Fair Market Value of a Unit based on the appraisals obtained by each and such other information that either deem relevant.  The cost of the arbitrator will be shared equally between the Company and the Participant.  The arbitrator’s determination shall be binding on EVA and the Participant but only with respect to Incentive Units held by the Participant. This Section shall govern the resolution of disputes about the Annual Valuation (or Interim Valuation). 

- 3 -

5.

Incentive Units

5.1.

General. EVA may grant Incentive Units and determine the number of Incentive Units to be covered by each Award.

5.2.

Vesting.

(a)

Unless the applicable Award agreement provides otherwise, each Award of Incentive Units shall vest in accordance with the following schedule (provided the Participant remains an employee of Eaton Vance Corp. or its subsidiaries (as defined in the EVC Omnibus Plan) through the applicable anniversary of the Grant Date):

			
	Anniversary of Grant Date

	Incremental Vesting

%

	Cumulative 

Vesting

%

	1

	10%

	10%

	2

	15%

	25%

	3

	20%

	45%

	4

	25%

	70%

	5

	30%

	100%

(b)

The number of Incentive Units that vest on the Vesting Date will be rounded up if equal to or greater than 0.5 Incentive Units, and down if less than or equal to 0.49 Incentive Units. 

(c)

An Award (to the extent unvested) shall fully vest (100%) upon death or Disability of a Participant while an employee of Eaton Vance Corp. or its subsidiaries (as defined in the EVC Omnibus Plan).

(d)

Upon a Participant’s termination of employment with Eaton Vance Corp. and its subsidiaries (as defined in the EVC Omnibus Plan) prior to a Vesting Date, all unvested Incentive Units subject to such Award(s) shall be forfeited and cancelled as of the commencement of business on the day after such employment terminates, subject to any action taken under Section 6.7.

5.3.

Settlement.  Vested Incentive Units shall be settled through the delivery of a number of shares of non-voting stock of Eaton Vance Corp. having a fair market value equal to (i) the Fair Market Value of a Unit as of the Valuation Date coinciding with the applicable Vesting Date (or in the case of vesting by reason of death or Disability, the Fair Market Value of a Unit as of any interim Valuation Date established by EVA pursuant to Section 4.3(b) with respect to such Vesting Date), multiplied by (ii) the number of Incentive Units that vest on such Vesting Date.  Such shares shall be issued under the EVC Omnibus Plan pursuant to an Other Stock-Based Award (as defined in the EVC Omnibus Plan) granted by the Compensation Committee of the Board of Directors of Eaton Vance Corp., and shall be subject to the terms and conditions of such plan.  Shares of non-voting stock of Eaton Vance Corp. issuable to a Participant with respect to a Vesting Date will be rounded up or down to the closest number of 

- 4 -

whole shares, and no fractional shares of non-voting stock of Eaton Vance Corp. will be issued to a Participant.

Delivery of shares shall occur as soon as practical after the applicable Vesting Date, but no earlier than the completion of the Annual Valuation or Interim Valuation, as applicable, and in all events within the applicable 2 1⁄2 month period specified in Treas. Reg. section 1.409A-1(b)(4)(i)(A) (the period ending on the later of the 15th day of the third month following the end of the Participant’s first taxable year in which the right to the payment is no longer subject to a substantial risk of forfeiture or the 15th day of the third month following the end of the Company’s first taxable year in which the right to the payment is no longer subject to a substantial risk of forfeiture). 

6.

General Provisions Applicable to Awards

6.1.

Transferability of Awards. Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the Participant, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the life of the Participant, shall be exercisable only by the Participant.

6.2.

Non-U.S. Participants.  With respect to any Participant who is employed outside the United States, Awards granted to such Participant shall be subject to such additional terms and conditions as are required by the jurisdiction in which the Participant is performing services or otherwise as required by law.

6.3.

Documentation. Each Award shall be evidenced by a written instrument in such form as EVA shall determine. Each Award agreement may contain terms and conditions in addition to those set forth in this Plan.

6.4.

EVA Discretion. The terms of each Award need not be identical, and EVA need not treat Participants uniformly.  EVA may grant future interests, real or phantom, in the Company that dilute the interest of Participants, and no adjustment of outstanding Awards shall be required in such event.

6.5.

Withholding.  Withholding and deduction from any settlement made pursuant to Section 5.3 for any federal, state, local or non-U.S. taxes required by law to be withheld shall be made in accordance with the EVC Omnibus Plan.  

6.6.

Amendment of Award. EVA may amend, modify or terminate any outstanding Award, provided that the Participant’s consent to such action shall be required unless EVA determines that the action, taking into account any related action, would not materially and adversely affect the Participant.

6.7.

Acceleration. EVA may at any time provide that any Awards shall become immediately vested and settled in full or in part or free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be; provided, that such acceleration is permitted or required by Section 409A of the Code.

- 5 -

7.

Miscellaneous

7.1.

No Right to Employment or Other Status. No person shall have any claim or right to be granted an Award under the Plan, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award agreement.

7.2.

No Rights as Member. No Participant shall have any rights as a member of the Company for any purpose with respect to any Incentive Units associated with an Award.

7.3.

Effective Date and Term of Plan. The Plan shall become effective upon adoption by EVA following approval of the Plan by the Compensation Committee of the Board of Directors of Eaton Vance Corp. and shall continue until terminated by EVA in accordance with Section 7.4, provided that Awards granted prior to such termination date may remain outstanding.

7.4.

Amendment or Termination of Plan. EVA may amend, suspend or terminate the Plan or any portion thereof at any time, subject, in the case of amendments, to approval of the Board of Directors of Eaton Vance Corp. or the Compensation Committee thereof, provided that the Participants’ consent to such action shall be required unless EVA determines that the action, taking into account any related action, would not materially and adversely affect the Participants.

7.5.

Priority of Participant Claims. Unless otherwise determined by EVA, the Plan shall be unfunded and shall not create (or be construed to create) a trust. The Plan shall not establish any fiduciary relationship between the Company and any Participant or other person. To the extent any person holds any right by virtue of being granted an Award under the Plan, such right (unless otherwise determined by EVA) shall be no greater than the right of an unsecured general creditor of the Company.

7.6.

Authorization of Sub-Plans. EVA may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of various jurisdictions. EVA shall establish such sub-plans by adopting supplements to this Plan containing (a) such limitations on EVA’s discretion under the Plan as EVA deems necessary or desirable and (b) such additional terms and conditions not otherwise inconsistent with the Plan as EVA shall deem necessary or desirable. All supplements adopted by EVA shall be deemed to be part of the Plan, but each supplement shall apply only to Participants within the affected jurisdiction and the Company shall not be required to provide copies of any supplement to Participants in any jurisdiction that is not the subject of such supplement.

7.7.

Compliance with Code Section 409A. This Plan is intended to comply with Section 409A of the Code relating to nonqualified deferred compensation (by reason of providing for compensation that is exempt) and all terms used herein shall be interpreted consistently therewith.  Notwithstanding the foregoing, neither the Company nor any of its officers, directors, employees, agents or affiliates shall have any liability if an Award hereunder does not comply with Section 409A of the Code.  

- 6 -

7.8.

Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware without giving effect to the conflict of law rules thereof. 

Adopted and approved by EVA on October 26, 2016.

- 7 -Exhibit

Exhibit 10.1

AMENDMENT NO. 6 TO CREDIT AGREEMENT
This AMENDMENT NO. 6 TO CREDIT AGREEMENT ("Amendment") is dated as of October 27, 2016, and is entered into by and among PERFORMANT BUSINESS SERVICES, INC. (formerly known as DCS Business Services, Inc.), a Nevada corporation ("Borrower"), the Lenders (as defined in the Credit Agreement as hereafter defined) party hereto, and MADISON CAPITAL FUNDING LLC, as Agent for all Lenders.
W I T N E S S E T H:
WHEREAS, Borrower, Agent and the Lenders from time to time party thereto are parties to that certain Credit Agreement dated as of March 19, 2012 (as the same has been or may be from time to time amended, restated, supplemented or otherwise modified, the "Credit Agreement"; capitalized terms not otherwise defined herein have the definitions provided therefor in the Credit Agreement, as amended hereby); and
WHEREAS, Borrower, Agent, Required Lenders, and Lenders holding a majority of the outstanding Term Loans have agreed to amend the Credit Agreement in certain respects, in each case subject to the terms and conditions set forth herein;
NOW THEREFORE, in consideration of the mutual conditions and agreements set forth in the Credit Agreement and this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1.Amendments to the Credit Agreement.  Subject to the satisfaction of the conditions set forth in Section 2 below, and in reliance on the representations and warranties set forth in Section 3 below, the Credit Agreement is hereby amended as follows:  
(a)    Section 1.1 of the Credit Agreement is amended by inserting new defined terms "Sixth Amendment Closing Date" and "December 2017 Compliance Date" therein in their appropriate alphabetical order as follows:
Sixth Amendment Closing Date means October 27, 2016.
December 2017 Compliance Date means the date (if any) upon which the Borrower delivers to Agent financial statements in respect of the Fiscal Quarter ending December 31, 2017 pursuant to Section 6.1.2 together with a Compliance Certificate in respect of such period pursuant to Section 6.1.3 that demonstrates compliance with each of the financial ratios and restrictions set forth in Sections 7.14.2, 7.14.4, 7.14.5 and 7.14.6 for such period and certifies that no other Default or Event of Default has occurred and is continuing as of the date of delivery of such Compliance Certificate.  
(b)    Section 1.1 of the Credit Agreement is amended by deleting the definition of the terms "Fixed Charge Coverage Ratio" and "September 2017 Compliance Date" therefrom in its entirety.

(c)    Section 1.1 of the Credit Agreement is amended by amending the definition of the term "EBITDA" set forth therein by replacing the reference to "costs, fees or expenses incurred in connection with the Amendment No. 4 to Credit Agreement dated as of the Fourth Amendment Closing Date and the Amendment No. 5 to Credit Agreement dated as of the Fifth Amendment Closing Date" set forth therein with a reference to "costs, fees or expenses incurred in connection with the Amendment No. 4 to Credit Agreement dated as of the Fourth Amendment Closing Date, the Amendment No. 5 to Credit Agreement dated as of the Fifth Amendment Closing Date and the Amendment No. 6 to Credit Agreement dated as of the Sixth Amendment Closing Date".
(d)    Section 2.10.2(a)(ii) of the Credit Agreement is amended and restated in its entirety as follows:  
(ii) (x) within 120 days after the end of the Fiscal Year ending December 31, 2016, in an amount equal to (A) 75% of Excess Cash Flow for such Fiscal Year minus (B) voluntary prepayments of the Term Loans pursuant to Section 2.10.1 made after the Sixth Amendment Closing Date (excluding any prepayment made with funds from the Cash Reserve Account as contemplated by Section 6.11) during such period, and (y) within 45 days after the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending March 31, 2017, in an amount equal to the lesser of (A) (1) 75% of Excess Cash Flow for such Fiscal Quarter minus (2) voluntary prepayments of the Term Loans pursuant to Section 2.10.1 made during such period (excluding any prepayment made with funds from the Cash Reserve Account as contemplated by Section 6.11), and (B) (1) 75% of Excess Cash Flow for the period commencing on the first day of the current Fiscal Year and ending on the last day of such Fiscal Quarter minus (2) the sum of all previous prepayments (if any) made pursuant to this Section 2.10.2(a)(ii)(y) (but not Section 2.10.2(a)(ii)(x)) during such Fiscal Year and all voluntary prepayments of the Term Loans pursuant to Section 2.10.1 (excluding any prepayment made with funds from the Cash Reserve Account as contemplated by Section 6.11) made during such Fiscal Year;
(e)    Section 6.11 of the Credit Agreement is amended be replacing the reference to "October 31, 2016" set forth therein with a reference to "February 28, 2017". 
(f)    Section 7.5(a) of the Credit Agreement is amended by replacing the reference to "September 2017 Compliance Date" set forth therein with a reference to "December 2017 Compliance Date".
(g)    Section 7.14.1 of the Credit Agreement is amended and restated in its entirety as follows:
7.14.1.Reserved.
(h)    Section 7.14.2. of the Credit Agreement is amended and restated in its entirety as follows:

-2-

7.14.2    Total Debt to EBITDA Ratio.
Not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to exceed the applicable ratio set forth below for such Computation Period:
	
		
	Computation 
Period Ending
	Total Debt to 
EBITDA Ratio

	December 31, 2015
	5.00:1.0

	March 31, 2016, June 30, 2016, September 30, 2016 December 31, 2016, March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017
	4.75:1.0

(i)    Section 7.14.4 of the Credit Agreement is amended and restated in its entirety as follows:
7.14.4.    Interest Coverage Ratio.
Not permit the Interest Coverage Ratio for any Computation Period set forth below to be less than the applicable ratio set forth below for such Computation Period: 
	
		
	Computation 
Period Ending
	Interest 
Coverage Ratio

	December 31, 2015
	2.25:1.0

	March 31, 2016, June 30, 2016 and September 30, 2016
	2.50:1.0

	December 31, 2016
	2.00:1.0

	March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017

	1.75:1.0

(j)    Exhibit B to the Credit Agreement is amended and restated in its entirety in the form attached as Exhibit B to this Amendment.
2.    Conditions to Effectiveness of Amendment.  The effectiveness of this Amendment is subject to satisfaction of the following conditions precedent:
(a)    Agent shall have received a copy of this Amendment (including the Consent and Reaffirmation attached hereto), executed by Borrower, each Loan Party, Required Lenders and Lenders holding a majority of the outstanding Term Loans;
(b)    No Default or Event of Default shall have occurred and be continuing as of the date of this Amendment; 

-3-

(c)    On October 27, 2016, Borrower shall have made (and Agent shall have received in immediately available funds) a voluntary prepayment of the Term Loans in an amount equal to $7,500,000, which $7,500,000 voluntary prepayment of the Term Loans shall (i) be applied pro rata to the then outstanding principal amount of the Term A Loans and Term B Loans, and (ii) as to the amounts applied to the Term A Loans and Term B Loans, be applied to the scheduled installments thereof in the inverse order of maturity; and
(d)    Agent shall have received the Amendment Fee (as defined below) for the benefit of the applicable Lenders, and Borrower shall have paid all other fees and expenses (including fees and expenses of counsel to the extent invoiced) of Agent due and payable as of the date hereof in connection with this Amendment, the Credit Agreement and the other Loan Documents.
3.    Representations and Warranties.  To induce Agent and the Required Lenders to enter into this Amendment, Borrower represents and warrants to Agent and Lenders that:
(a)    the execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of Borrower and each other Loan Party and that this Amendment has been duly executed and delivered by Borrower and each other Loan Party; 
(b)    this Amendment and the Borrower's obligations under the Credit Agreement as amended hereby constitute the legal, valid and binding obligation of Borrower and are enforceable against Borrower in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditor's rights generally and to general principles of equity;
(c)    the execution and delivery by Borrower and the other Loan Parties of this Amendment does not require the consent or approval of any Person, except such consents and approvals as have been obtained; 
(d)    after giving effect to this Amendment, the representations and warranties of Borrower and each other Loan Party set forth in the Credit Agreement and the other Loan Documents are true and correct in all material respects with the same effect as if made on the date hereof (except to the extent such representations and warranties are stated to relate to a specific earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date); and
(e)    no Default or Event of Default has occurred and is continuing.  
4.    Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable. 

-4-

5.    References.  Any reference to the Credit Agreement contained in any document, instrument or Credit Agreement executed in connection with the Credit Agreement shall be deemed to be a reference to the Credit Agreement as modified by this Amendment.
6.    Amendment Fee.  In consideration of the agreements set forth herein, upon the effectiveness of this Amendment in accordance with, and subject to all of the conditions specified in Section 3 hereof (other than Section 3(d)), Borrower agrees to pay to Agent, for the ratable benefit of the respective Lenders that executed and sent signature pages to this Amendment to the Agent (including pages that were delivered in escrow) on or before12:00 p.m. (Chicago time) on October 26, 2016 (such Lenders, the "Consenting Lenders"), an amendment fee equal to 0.375% of the sum of the Revolving Loan Commitments and outstanding principal amount of the Term Loans of the Consenting Lenders as of the date hereof.
7.    Counterparts; Electronic Transmission.  This Amendment may be executed in one or more counterparts, each of which shall constitute an original, but all of which taken together shall be one and the same instrument.  Facsimile signatures and other electronic signatures shall also constitute originals.
8.    Release.
(a)    In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of Borrower and each other Loan Party (by such other Loan Party's execution and delivery of the attached Consent and Reaffirmation), on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set‐off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, Borrower or such Loan Party or any of their successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, for or on account of, or in relation to, or in any way in connection with any of the Credit Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.
(b)    Each of Borrower and each other Loan Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

-5-

(c)    Each of Borrower and each other Loan Party agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth herein.
9.    Ratification.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions of the Credit Agreement and shall not be deemed to be a consent to the modification or waiver of any other term or condition of the Credit Agreement.  Except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and each of the other Loan Documents are ratified and confirmed and shall continue in full force and effect.  Without limitation of the foregoing, it is acknowledged and agreed that the provisions of Section 2 of that certain Amendment No. 5 to Credit Agreement dated as of June 25, 2016 remain in full force and effect and that none of Agent nor Lenders holding more than 50% of the Revolving Loan Commitments have consented to the making of further requests for Revolving Loans by the Borrower.
10.    Governing Law.  THIS AMENDMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.
 [Signature Pages Follow]

-6-

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under seal and delivered by their respective duly authorized officers on the date first written above.
	
	
	PERFORMANT BUSINESS SERVICES, INC. 
(formerly known as DCS Business Services, Inc.) 
 
 
By:  /s/ Hakan Orvell    
Name: Hakan Orvell    
Title: CFO   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	MADISON CAPITAL FUNDING LLC, 
as Agent and a Lender  
 
 
By: /s/ Craig Dugan    
Name:  Craig Dugan     
Title: VP    

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	MCF CLO I LLC, 
as a Lender
By: Madison Capital Funding LLC, as successor to MCF Capital Management LLC, as collateral manager 
 
By:  /s/ Brian Ternes    
Name:  Brian Ternes    
Title: Vice President   

	
	
	MCF CLO II LLC, 
as a Lender
By: Madison Capital Funding LLC, as successor to MCF Capital Management LLC, as collateral manager 
 
By:  /s/ Brian Ternes    
Name:  Brian Ternes    
Title: Vice President   

	
	
	MCF CLO IV LLC, 
as a Lender
By: Madison Capital Funding LLC, as successor to MCF Capital Management LLC, as collateral manager 
 
By:  /s/ Brian Ternes    
Name:  Brian Ternes    
Title: Vice President   

	
	
	BancAlliance, 
By: AP Commercial LLC, its attorney-in-fact,
as a Lender
By:  /s/ John Gray    
Name:  John Gray    
Title:  Executive Vice President   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	MC Funding, Ltd., 
By: Monroe Capital Management, LLC, as Collateral Manager 
By:  /s/ Jeffrey Williams    
Name:  Jeffrey Williams    
Title:  Managing Director   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	EMPORIA PREFERRED FUNDING II, LTD.,  
as a Lender 
By: Ivy Hill Asset Management, L.P., as Collateral Manager 
By:  /s/ Kevin R. Braddish    
Name:  Kevin R. Braddish    
Title:  Duly Authorized Signatory   

	
	
	EMPORIA PREFERRED FUNDING III, LTD.,  
as a Lender 
By: Ivy Hill Asset Management, L.P., as Collateral Manager 
By:  /s/ Kevin R. Braddish    
Name:  Kevin R. Braddish    
Title:  Duly Authorized Signatory   

	
	
	IVY HILL MIDDLE MARKET CREDIT FUND IV, LTD.,  
as a Lender 
By: Ivy Hill Asset Management, L.P., as Collateral Manager 
By:  /s/ Kevin R. Braddish    
Name:  Kevin R. Braddish    
Title:  Duly Authorized Signatory   

	
	
	IVY HILL MIDDLE MARKET CREDIT FUND V, LTD.,  
as a Lender 
By: Ivy Hill Asset Management, L.P., as Collateral Manager 
By:  /s/ Kevin R. Braddish    
Name:  Kevin R. Braddish    
Title:  Duly Authorized Signatory   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	IVY HILL MIDDLE MARKET CREDIT FUND VII, LTD.,  
as a Lender 
By: Ivy Hill Asset Management, L.P., as Collateral Manager 
By:  /s/ Kevin R. Braddish    
Name:  Kevin R. Braddish    
Title:  Duly Authorized Signatory   

	
	
	IVY HILL MIDDLE MARKET CREDIT FUND IX, LTD.,  
as a Lender 
By: Ivy Hill Asset Management, L.P., as Collateral Manager 
By:  /s/ Kevin R. Braddish    
Name:  Kevin R. Braddish    
Title:  Duly Authorized Signatory   

Signature Page –Amendment No. 6 to Credit Agreement

	
	
	ING CAPITAL LLC, 
as a Lender
By:  /s/ Lawrence Eyink    
Name:  Lawrence Eyink    
Title:  Director   
By:  /s/ Lee Lem    
Name:  Lee Lem    
Title:  Director   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	AUDAX CREDIT OPPORTUNITIES OFFSHORE LTD., as a Lender 

By:  /s/ Michael P. McGonigle    
Name:  Michael P. McGonigle    
Title:  Authorized Signatory   

	
	
	AUDAX SENIOR DEBT (WCTPT) SPV, LLC, 
as a Lender 

By:  /s/ Michael P. McGonigle    
Name:  Michael P. McGonigle    
Title:  Authorized Signatory   

	
	
	AUDAX CREDIT OPPORTUNITIES (SBA), LLC, 
as a Lender 

By:  /s/ Michael P. McGonigle    
Name:  Michael P. McGonigle    
Title:  Authorized Signatory   

	
	
	A CMFG LIFE INSURANCE COMPANY,  
by Audax Management (NY), LLC, its subadvisor  
as a Lender 

By:  /s/ Michael P. McGonigle    
Name:  Michael P. McGonigle    
Title:  Authorized Signatory   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	Bank of the West, 
as a Lender

By:  /s/ Henry D. Lanson    
Name:  Henry D. Lanson    
Title:  Vice President   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	Amalgamated Bank, 
as a Lender

By:  /s/ Melony Heh    
Name:  Melony Heh    
Title:  First Vice President   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	Wells Fargo Bank, N.A., 
as a Lender

By:  /s/ Victor Choi    
Name:  Victor Choi    
Title:  Vice President   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	PennantPark Floating Rate Funding I, LLC, 
as a Lender

PennantPark Floating Rate Capital Ltd., as Designated Manager 
By:  /s/ Arthur H. Penn    
Name:  Arthur H. Penn    
Title:  Chief Executive Officer   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	FTP Credit Holdings, LLC 
as a Lender
By:  /s/ Steve McLaughlin    
Name:  Steve McLaughlin    
Title:  President and Secretary   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	NEWSTAR COMMERCIAL LOAN FUNDING 2012-2 LLC, as a Lender 
By: NewStar Financial, Inc., its Designated Manager 
By:  /s/ Rober F. Milordi    
Name:  Rober F. Milordi    
Title:  Managing Director   

	
	
	NEWSTAR COMMERCIAL LOAN FUNDING 2014-1 LLC, as a Lender 
By: NewStar Financial, Inc., its Designated Manager 
By:  /s/ Rober F. Milordi    
Name:  Rober F. Milordi    
Title:  Managing Director   

Signature Page to Amendment No. 6 to Credit Agreement

	
	
	Saratoga Investment Corp CLO 2013-1, Ltd., as a Lender 
By:  /s/ Pavel Antonov    
Name:  Pavel Antonov    
Title:  Attorney In Fact   

Signature Page to Amendment No. 6 to Credit Agreement

CONSENT AND REAFFIRMATION
Each of Performant Financial Corporation, Performant Recovery, Inc. (formerly known as Diversified Collection Services, Inc.) and Performant Technologies, Inc. (formerly known as Vista Financial, Inc.) (collectively, the "Companies") hereby (i) acknowledges receipt of a copy of the foregoing Amendment No. 6 to Credit Agreement dated as of October 27, 2016 (the "Amendment"); (ii) consents to Borrower's execution and delivery of the Amendment and the consummation of the transactions contemplated thereby; (iii) agrees to be bound by the Amendment (including by Section 8 of the Amendment); (iv) affirms that nothing contained in the Amendment shall modify in any respect whatsoever any Loan Document to which it is a party; and (v) reaffirms that such Loan Documents shall continue to remain in full force and effect and that its guaranty of the Obligations and grant of security interests in its assets to secure such guaranty of the Obligations shall remain in effect in all respects.  Although the Companies have been informed of the matters set forth herein and has acknowledged and agreed to same, each of the Companies understands that Agent and Lenders have no obligation to inform either Company of such matters in the future or to seek acknowledgment of either Company or agreement to future amendments, waivers or consents, and nothing herein shall create such a duty.
IN WITNESS WHEREOF, the parties hereto have caused this Consent and Reaffirmation to be duly executed under seal and delivered by their respective duly authorized officers on and as of the date of the Amendment.
[Signature Page Follows]

	
	
	PERFORMANT FINANCIAL CORPORATION 
 
 
By: /s/ Hakan Orvell     
Name: Hakan Orvell    
Title: CFO    

	
	
	PERFORMANT RECOVERY, INC. 
(formerly known as Diversified Collection Services, Inc.) 
 
 
By: /s/ Hakan Orvell     
Name: Hakan Orvell    
Title: CFO    

	
	
	PERFORMANT TECHNOLOGIES, INC. (formerly known as Vista Financial, Inc.)  
 
 
By: /s/ Hakan Orvell     
Name: Hakan Orvell    
Title: CFO    

Signature Page to Consent and Reaffirmation –Amendment No. 6 to Credit Agreement

Exhibit B
Form of Compliance Certificate
Please refer to the Credit Agreement dated as of March 19, 2012 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by and among the undersigned ("Borrower"), the lenders party thereto from time to time, as Lenders, and Madison Capital Funding LLC, as administrative agent ("Agent").  This certificate (this "Certificate"), together with supporting calculations attached hereto, is delivered to Agent and Lenders pursuant to the terms of the Credit Agreement.  Terms used but not otherwise defined herein are used herein as defined in the Credit Agreement.
[Enclosed herewith is a copy of the [annual audited/quarterly/monthly] report of Borrower as at ________________ (the "Computation Date"), which report fairly presents in all material respects the financial condition and results of operations [(subject to the absence of footnotes and to normal year-end adjustments)] of Borrower as of the Computation Date and has been prepared in accordance with GAAP consistently applied.]
Borrower hereby certifies and warrants that the computations set forth on the schedule attached hereto correspond to the ratios contained in the Credit Agreement and such computations are true and correct as at the [Computation Date] [date hereof, after giving pro forma effect to the Acquisition (and related Loans) pursuant to which this certificate is delivered].
Borrower further certifies that no Event of Default or Default has occurred and is continuing as of the date hereof [except as described on the Schedule attached hereto].
	
	
	PERFORMANT BUSINESS SERVICES, INC. 
(formerly known as DCS Business Services, Inc.) 
 
 
By:    
Title:   

B-1

Schedule to Compliance Certificate 
Dated as of _________________

	
				
	A.   Calculation of EBITDA

	1.   Consolidated Net Income
	$________

	2.   Plus:   Losses from Dispositions, extraordinary items, discontinued operations, reappraisal, revaluation or write-down of assets 
   interest expense and the Agent's fee 
   income tax expense 
   depreciation 
   amortization 
   charges for impairment of goodwill and 
     other intangibles 
   management fees and reimbursable expenses 
   amortization of debt discounts and    commissions
	$________ 
$________ 
$________ 
$________ 
$________ 
 
$________ 
$________ 
 
$________

	3.   Plus:   Transaction fees and expenses in    connection with this agreement 
   Non-cash expenses in connection with 
   options, deferred compensation and    stock options
	$________ 
 
 
$________

	Transaction Fees in connection with Permitted Acquisitions and Investments permitted under Sections 7.11(q) and 7.11(s)
	$________

	Transaction fees and expenses in connection with a successful Qualified IPO
	$________

	Transaction fees and expenses in connection with an unsuccessful Qualified IPO
	$________

	Costs and expenses related to Permitted Debt or equity issuances
	$________

	Non-cash expenses in the form of options granted to Borrower or Holdings and other non-cash expense with respect to deferred compensation and stock options
	$________

	severance expenses approved by the Agent
	$________

	business interruption insurance proceeds
	$________

	
				
	Non-cash adjustment to the valuation of earnout payments or other consideration relating to Investments permitted hereunder
	$________

	cash restructuring charges approved by the Agent in connection with Permitted Acquisitions and Investments permitted under Sections 7.11(q) and 7.11(s)
	$________

	non-cash restructuring charges from Permitted Acquisitions or Investments permitted under Sections 7.11(q) and 7.11(s)
	$________

	non-cash charges (or minus non-cash gains) relating to various accounting charges
	$________

	other extraordinary costs and expenses satisfactory to Agent
	$________

	non-cash adjustments relating to earn-outs and other investment consideration
	$________

	any Cure Amount contributed pursuant to Section 7.14.3 (solely for purpose of determining compliance with Section 7.14.1 and 7.14.2)
	$________

	the result of (a) the amount collected during such period from the Department of Education for services performed and invoiced, but for which revenue has not yet been recognized in Consolidated Net Income, minus (b) revenue from the Department of Education recognized in Consolidated Net Income during such period for which cash was received in a prior period and where revenue was not previously recognized, all subject to the review and reasonable approval of Agent
	$________

	CMS Settlement Addback up to $3,000,000 during term of Agreement
	$_________

	Fees, costs and expenses re Amendment No. 2
	$_________

	
				
	Fees, costs and expenses re Amendment No. 4, Amendment No. 5 and Amendment No. 6
	$_________

	Permitted DOE Addbacks
	$_________

	4.   Minus: Gains from Dispositions, extraordinary items, discontinued operations, reappraisal, revaluation or write-up of assets
	$________

	5.   Total (EBITDA)
	$________

	B.   Section 7.14.2 - Maximum Total Debt to [Adjusted] EBITDA Ratio

	1.   Total Debt
	$________

	2.   [Adjusted] EBITDA 
(from Item A(5) above[, plus Pro Forma EBITDA totaling $______ in the aggregate for all applicable Permitted Acquisitions in such period (comprising of Pro Forma Adjusted EBITDA in the following individual amounts with respect to the following individual Permitted Acquisitions (x) _______, $________, (y) _______, $________ and (z) _______, $________)])
	$________

	3.   Ratio of (1) to (2)
	____ to 1

	4.   Maximum allowed
	____ to 1

	C.   Section 7.14.4 – Minimum Interest Coverage Ratio

	1.   EBITDA (from Item [__] above)
	$________

	2.   Interest Expense paid in cash
	$________

	3.   Ratio of (1) to (2)
	____ to 1

	4.   Minimum required
	____ to 1

	E.   Section 7.14.6 - Capital Expenditures
	 

	1.   Capital Expenditures for the Fiscal Year
	$________
	 

	2.   Maximum Permitted Capital Expenditures
	$8,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00263-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00263-of-00352.parquet"}]]