UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~February 16~~ March 1, 2010

Performance Capital Management, LLC

(Exact name of registrant as specified in its charter)

California		0 – 50235		03-0375751
(State or other Jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

7001 Village Drive, Suite 255
Buena Park, California		90621
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (714) 736-3790

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 5.02. ~~Departure~~Board ~~of Directors or Certain Officers~~Compensation.

~~On February 16, 2010, a severance payment was made by~~ Performance Capital Management, LLC (the “Company”) todisclosed ~~Mr.~~in ~~David~~a ~~Caldwell,~~report ~~the~~on ~~Company’s~~Form ~~Chief Operations~~8-K ~~Officer,~~dated ~~and~~February ~~Mr. Edward Rucker~~16, ~~the~~2010 ~~Company’s~~and ~~Accounting~~filed ~~Manager,~~with in the ~~amounts~~SEC ofon ~~$110,000~~February ~~and $10~~23,~~000,~~ ~~respectively,~~2010 inthat ~~connection~~all ~~with~~three ~~their termination~~members ~~as employees~~ of the ~~Company to be effective on February 28, 2010. The~~ Board of Directors ~~(“Board”)~~ of the Company ~~had~~are ~~previously~~being ~~approved~~paid ~~the payments~~$2,000 ~~and~~per ~~the~~regular ~~effective~~Board ~~date~~meeting ofbeginning ~~the~~in ~~terminations~~February at2010. ~~its~~Mr. ~~regularly~~Donald ~~scheduled meeting~~Rutherford ~~held~~is onbeing ~~January~~paid ~~12,~~an ~~2010.~~additional ~~Beginning~~$750 onper ~~March~~regular 1,Board ~~2010,~~meeting ~~all~~for ~~executive officer~~serving ~~duties~~as ~~will be assumed by~~ the ~~members~~Company’s ofAudit ~~the~~Committee ~~Board~~financial expert.

AsItem ~~a result of their removal as employees of the Company, Mr~~5. ~~Caldwell’s employment agreement and Mr~~07. Submission Rucker’s indemnification agreement with the Company will terminate on February 28, 2010. Mr. Caldwell’s severance payment is made in connection with his employment agreement with the Company, which contemplates a payment equal to six months of ~~his~~Matters ~~annual salary of $220,000. A copy of Mr. Caldwell’s employment agreement is attached~~ to ~~the~~a ~~Company’s~~Vote ~~report on Form 10-QSB for the period ended June 30, 2007, filed with the SEC on August 14, 2007. Mr. Rucker’s severance payment is made in consideration~~ of ~~his~~Security ~~many years of service to the Company~~Holders.

~~The reason~~March ~~for~~1, ~~the~~2010 ~~termination~~marked of the ~~full-time~~deadline ~~employment~~for ofmembers ~~Mr.~~(“Members”) ~~Caldwell and Mr. Rucker is to reduce the fixed expenses~~ of the Company. ~~After~~to ~~February~~vote ~~28,~~by ~~2010~~consent, ~~both~~ ~~Mr.~~in ~~Caldwell~~lieu ~~and~~of ~~Mr.~~a ~~Rucker~~Special ~~may~~Meeting ~~continue~~of toMembers, ~~serve the Company~~ on a ~~part-time, as~~ ~~needed basis~~proposal until the Company has been dissolved, but will no longer be full-time employees of the Company. The Board-approved hourly rates shall be $100.00 per hour for Mr. Caldwell and $50 per hour for Mr. Rucker. Mr. Caldwell’s services are anticipated to ~~include payments~~approve ~~to creditors~~ and ~~other~~ratify ~~fees,~~the ~~investor~~dissolution ~~relations~~ and ~~assistance~~liquidation ~~with the dissolution~~ of the Company. ~~Mr.~~pursuant ~~Rucker’s services are~~ to ~~include~~the ~~preparation~~Plan of ~~tax~~ ~~forms, accounts payable and any distributions to unit-holders, as well as other accounting matters as needed~~Dissolution.

~~Mr. Darren~~The ~~Bard~~number ~~resigned as an officer~~ of ~~the~~Member ~~Company~~units ~~effective~~outstanding ~~January~~as ~~15, 2010, but has continued to assist the Company with transitional matters. As compensation for his continued assistance and in consideration for his many years~~ of ~~service~~December to31, ~~the Company~~2009, the ~~Board~~record ~~approved a one-time payment in the amount of $12~~date,~~500~~ ~~to Mr. Bard, which payment~~ was ~~made on January 15~~524, ~~2010~~770. The ~~amount~~ ~~was~~following ~~determined~~are tothe beresults ~~based upon Mr. Bard providing between 150 and 200 hours~~ of ~~service to~~ the Company. These services have included assistance with the transfer of portfolio files to buyers, assistance in preparing tax forms, handling data requests, and assisting with other legal and financial reports and documents as needed.vote:

~~Beginning on~~§ ~~February~~Members 1,holding ~~2010~~290,168 ~~the~~units ~~remaining~~voted ~~three members of the Board will each receive $2,000 per regular Board meeting in compensation~~ for ~~their services as directors of~~ the Company. Mr. Les Bishop and Mr. Sanford Lakoff had previously been paid $1,350 per regular Board meeting and Mr. Rutherford had previously been paid $2,183 per regular Board meeting. The adjustment was made to equalize the payments to the Board members and to reflect the added responsibility of the three Board members following the resignation of the other Board members and the anticipated termination of employment of Mr. Caldwell and Mr. Rucker.proposal;

1§ Members holding 2,040 units voted against the proposal; and

Members holding 5,972 units abstained.

Abstentions are counted as votes against the proposal. Since Members of record holding a majority (55.29%) of the Member units outstanding as of the record date voted for the proposal, the dissolution and liquidation of the Company has been approved and ratified by the Members. As such, the Board of Directors (the “Board”) of the Company will now proceed with the dissolution and liquidation of the Company pursuant to the Plan of Dissolution by first filing a Certificate of Dissolution with the Secretary of State of the State of California.

Item 8.01. Other Events.

As of ~~February~~ 19March 1, 2010, athe ~~majority~~Company had approximately $850,000 in cash, consisting of the proceeds generated from the sale of the Company’s ~~outstanding~~portfolios. ~~member~~The ~~units~~Company ~~that~~will ~~had been~~use ~~voted~~the ~~were~~funds ~~voted~~to insettle ~~favor~~any ofremaining ~~the~~amounts ~~proposal~~owing to ~~dissolve~~creditors, ~~the~~including ~~Company. However~~$150, ~~approval~~000 to the landlord of the ~~dissolution~~Company’s ~~proposal~~leased ~~requires~~office ~~the~~space ~~affirmative~~in ~~vote~~connection ofwith athe ~~majority~~ early termination of the ~~issued~~Company’s lease, and ~~outstanding~~to ~~member~~pay ~~units~~ongoing ofexpenses as the Company, asprepares ~~opposed~~ to ~~just~~dissolve, ~~a majority~~including ofrent, ~~those~~Board member ~~units~~and ~~voted~~employee compensation, insurance premiums, and legal and accounting fees.

~~Since~~There ~~a large~~are ~~number~~three ofpending lawsuits that have been filed against the Company’s. ~~members~~Details ~~have~~concerning ~~not~~these ~~yet~~lawsuits ~~voted,~~were ~~the~~previously ~~Board~~disclosed ~~has~~in ~~extended~~ the ~~voting~~Company’s ~~deadline~~report ~~from~~on ~~Friday,~~Form ~~February~~8-K 19dated January 7, 2010 toand ~~Monday,~~filed ~~March~~with 1the SEC on January 13, 2010 and in ~~order~~ tothe ~~give~~Company’s ~~these~~report ~~members~~on aForm ~~chance~~10-Q tofor ~~submit~~the ~~their~~period ~~consents~~ended September 30, 2010 and filed with the SEC on November 20, 2009. The ~~Board strongly~~merits ~~encourages~~of the ~~members~~lawsuits tohave ~~carefully~~not ~~consider~~yet been determined, so the ~~dissolution~~amount ~~proposal described~~of inany ~~the~~contingent ~~proxy~~liability ~~statement~~with ~~and~~respect to ~~vote~~the inpossible ~~favor~~outcome of the ~~dissolution proposal~~lawsuits is difficult to determine at this time. The ~~Board~~deductible ~~thanks~~under the ~~large~~Company’s ~~number~~errors ofand ~~members~~omissions ~~who~~insurance ~~have~~is ~~already~~$50,000 ~~voted for~~per ~~the dissolution proposal~~lawsuit.

~~The record~~After ~~date~~determining ~~for~~all ~~members~~of ~~entitled~~the toknown ~~vote~~debts byand ~~consent~~liabilities ~~remains~~of ~~December~~the ~~31, 2009. Members~~Company ~~who~~in ~~have~~the ~~previously~~process ~~submitted~~of ~~their~~winding ~~consent,~~up ~~and~~the ~~who~~affairs ~~do not~~of ~~want~~the toCompany, ~~change~~the ~~their~~Company’s ~~vote,~~remaining ~~need~~assets ~~not~~will ~~take~~be ~~any~~distributed ~~action.~~among ~~Members~~the ~~who~~Company's ~~have questions~~Members ~~about~~and the ~~dissolution,~~Economic ~~need~~Interest ~~assistance~~Owner in ~~submitting~~accordance ~~their~~with ~~consent~~the ~~(or changing~~provisions aof ~~prior~~the ~~vote~~Plan of ~~their shares) should contact Mr~~Dissolution. ~~David Caldwell, Chief Operations Officer, at 1-714-736-3790 or toll-free at 1-800-757-7700, extension 0.~~

~~ADDITIONAL INFORMATION~~The ~~AND~~payment ~~WHERE~~of TOa ~~FIND~~debt ITor liability, whether the whereabouts of the creditor is known or unknown, may be adequately provided for by either of the following means: (a) the payment will have been assumed or guaranteed in good faith by a person deemed by the Members or the Board to be financially responsible based upon a good faith determination made with reasonable care at the time of any distribution of assets; or (b) the maximum amount of all such claims will have been deposited in trust with the California State Controller. All amounts owing by the Company must be settled before a final distribution of assets can be made to the Company’s Members and Economic Interest Owner.

The disclosure in this report on Form 8-K is incorporated by reference in the definitive proxy statement filed by the Company with the SEC on January 12, 2010. Members are urged to read the definitive proxy statement and other relevant materials filed by the Company with the SEC carefully, including this Report on Form 8-K, because they contain important information about the Company, the proposal and related matters. Members may obtain free copies of the consent solicitation documents filed with the SEC on the Company’s web site at: http://www.cfpproxy.com/9101SM. Members may also request a copy of any document posted on the Company’s web site by writing to Performance Capital Management, LLC, 7001 Village Drive, Suite 255, Buena Park, California 90621, Attn: David J. Caldwell or by calling 1~~-714-736-3790 or toll-free 1-800-757-7700, extension 0.~~

FORWARD-LOOKING STATEMENTS

Except for the historical information presented in this document, the matters discussed in this Form 8-K or otherwise incorporated by reference into this document contain “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements can be identified by the use of forward-looking terminology such as “believes,” “plans,” “expects,” “may,” “will,” “intends,” “should,” “plan,” “assume” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by Performance Capital Management, LLC (the “Company”). You should not place undue reliance on forward-looking statements. Forward-looking statements involve risks and uncertainties. The actual results that we achieve may differ materially from any forward-looking statements due to such risks and uncertainties. These forward-looking statements are based on current expectations, and we assume no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by the Company in this report on Form 8-K and in the Company’s other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PERFORMANCE CAPITAL MANAGEMENT, LLC
February 22, 2010		By:	/s/ David J. Caldwell
March 3, 2010		By:	/s/ Les Bishop
(Date)		~~David J. Caldwell~~	Les Bishop
		Its: Chief Operations Officer
			Its: Chairman of the Board

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