Document:

AMENDMENT NO. 7, dated as of June 20, 2000 (this
                   "Amendment"), to the Credit Agreement dated as of January 7,
                   1998, as amended by Amendment No. 1 and Waiver dated as of
                   March 16, 1998, Amendment No. 2 and Waiver dated as of May
                   21, 1998, Amendment No. 3 and Waiver dated as of July 16,
                   1998, Amendment No. 4 dated as of November 12, 1998,
                   Amendment No. 5 dated as of March 12, 1999, and Amendment
                   No. 6 dated as of December 20, 1999 (the "Credit Agreement"),
                   among DENNY'S, INC., a California corporation, EL POLLO LOCO,
                   INC., a Delaware corporation, FLAGSTAR ENTERPRISES, INC., an
                   Alabama corporation, FLAGSTAR SYSTEMS, INC., a Delaware
                   corporation, QUINCY'S RESTAURANTS, INC., an Alabama
                   corporation (each of the foregoing, except for FLAGSTAR
                   ENTERPRISES, INC., QUINCY'S RESTAURANTS, INC. and EL POLLO
                   LOCO, INC., for purposes of this Amendment and the Credit
                   Agreement, individually, a Borrower and, collectively, the
                   "Borrowers"), ADVANTICA RESTAURANT GROUP, INC., a Delaware
                   corporation ("Parent"), the Lenders (as defined in Article I
                   of the Credit Agreement) and THE CHASE MANHATTAN BANK, a
                   New York banking corporation, as swingline lender (in such
                   capacity, the "Swingline Lender"), as issuing bank (in such
                   capacity, the "Issuing Bank"), as administrative agent (in
                   such capacity, the "Administrative Agent") and as collateral
                   agent (in such capacity, the "Collateral Agent") for the
                   Lenders.

                  A. The Lenders have extended credit to the Borrowers, and have
agreed to extend credit to the Borrowers, in each case pursuant to the terms and
subject to the conditions set forth in the Credit Agreement.

                  B.  Parent and the Borrowers have requested that the Required
Lenders  agree to amend certain  provisions of the Credit  Agreement as provided
herein.

                  C.  The Required Lenders are willing to agree to such
amendments, on the terms and subject to the conditions set forth herein.

                  D. Capitalized terms used but not defined herein shall have
the meanings assigned to them in the Credit Agreement after giving effect to
this Amendment.

                  Accordingly, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto agree as follows:

                  SECTION 1.  Amendment.  (a) Section 1.01 of the Credit
Agreement is hereby amended as follows:

                  (i) by inserting the following definition in the appropriate
         alphabetical order:

                  "'FRD Sale' shall have the meaning assigned to such term in
                  Section 6.05(l)."

<PAGE>

                                                                               2

                  (ii) by substituting for the proviso at the end of the
         definition of the term "Consolidated EBITDA" before the period the
         following proviso:

                  "; provided, however, that (a) upon and after the occurrence
                  of an EPL Sale, Consolidated EBITDA for each period that
                  includes the date of occurrence of such EPL Sale will, solely
                  for purposes of determining compliance with Sections 6.11,
                  6.12, 6.13 and 6.14, be determined on a pro forma basis, as if
                  EPL had been sold on the first day of such period, (b) upon
                  and after the occurrence of the FRD Sale, Consolidated EBITDA
                  for each period that includes the date of occurrence of the
                  FRD Sale will, solely for purposes of determining compliance
                  with Sections 6.11, 6.12, 6.13 and 6.14, be determined on a
                  pro forma basis, as if FRD had been sold on the first day of
                  such period, and (c) after the occurrence of any acquisition
                  of any person by Parent, any Borrower or any Specified
                  Subsidiary, Consolidated EBITDA for each period that includes
                  the date of occurrence of such acquisition will, solely for
                  purposes of determining compliance with Sections 6.11 and
                  6.12, be determined on a pro forma basis, based on the actual
                  historical results of operations of such person, as if such
                  acquisition had occurred on the first day of such period";

         (b) Section 6.04(c) of the Credit Agreement is hereby amended by
inserting the text "subject to Section 6.15(a)," immediately following the text
"(c)" at the beginning of such Section.

         (c)  Section 6.05 of the Credit Agreement is hereby amended as follows:

                  (i)  by deleting the word "and" set forth at the end of
                       Section 6.05(j); and

                  (ii) by inserting the following new paragraphs:

                  "(l) Parent may dispose of FRD on terms determined reasonably
                  and in good faith by the Board of Directors of Parent to be
                  fair (the "FRD Sale"), provided that (i) at the time of the
                  FRD Sale, and immediately after giving effect thereto, no
                  Default or Event of Default shall have occurred and be
                  continuing, (ii) the FRD Sale is consummated in accordance
                  with (A) an agreement and related documentation the terms of
                  which are reasonably satisfactory to the Administrative Agent
                  (without giving effect to any amendments, waivers, supplements
                  or other modifications thereto that are materially adverse to
                  the Lenders) and (B) applicable law and regulations and
                  otherwise on terms reasonably satisfactory to the
                  Administrative Agent, (iii) prior to or simultaneously with
                  the FRD Sale, the Advantica Guarantee shall, pursuant to an
                  agreement in form and substance reasonably satisfactory to the
                  Administrative Agent, be irrevocably terminated and (iv) the
                  execution, delivery and performance by Parent and each
                  necessary Loan Party of the documentation in respect of the
                  FRD Sale, and the completion of the FRD Sale, (a) shall have
                  been duly authorized by all requisite corporate and, if
                  required, stockholder action and (b) will not (i) violate (A)
                  any provision of law, statute, rule or regulation, or of the
                  certificate or articles of incorporation or other constitutive
                  documents or by-laws of Parent, any Borrower or any other
                  Subsidiary, (B) any order of any Governmental Authority or (C)
                  any

<PAGE>

                                                                               3

                  provision of any indenture, agreement or other instrument to
                  which Parent, any Borrower or any other Subsidiary is a party
                  or by which any of them or any of their property is or may be
                  bound or (ii) be in conflict with, result in a breach of or
                  constitute (alone or with notice or lapse of time or both) a
                  default under, or give rise to any right to accelerate or to
                  require the prepayment, repurchase or redemption of any
                  obligation under any such indenture, agreement or other
                  instrument; and

                  (m) Denny's or any of its subsidiaries may (i) sell or
                  transfer the rights to operate restaurants under the Denny's
                  name as franchisees (but not the restaurant buildings
                  themselves (the "Retained Denny's Restaurants") or the land on
                  which such restaurants are located (the "Retained Denny's
                  Land")) to franchisees of Denny's (the "Denny's Franchisees")
                  generally in accordance with Parent's March 2000 Business Plan
                  for cash consideration equal to the Fair Market Value of such
                  rights and (ii) may lease or sublease the Retained Denny's
                  Restaurants and the Retained Denny's Land to the Denny's
                  Franchisees that operate such Retained Denny's Restaurants
                  pursuant to operating leases or subleases on terms determined
                  in good faith by Denny's or the applicable Subsidiary to be
                  market terms at the time such leases or subleases are entered
                  into, provided that (i) such Retained Denny's Restaurants
                  continue to be operated by such Denny's Franchisees under the
                  Denny's name and (ii) such sales, and such leases or
                  subleases, do not violate, conflict with, result in the breach
                  of or constitute a default under any provision of, or give
                  rise to any right to terminate, any indenture, agreement or
                  other instrument to which Parent, any Borrower or any
                  Subsidiary is a party;".

         (d) Section 6.06(a) of the Credit Agreement is hereby amended by
inserting the text "subject to Section 6.15(a)," immediately following the text
"provided, however, that (i)" in such Section.

         (e) Section 6.08(a) of the Credit Agreement is hereby amended as
follows:

                  (i) by deleting the word "and" set forth at the end of Section
         6.08(a)(ii); and

                  (ii) by inserting the word "and" immediately following the
         semi-colon at the end of Section 6.08(iii) and by then adding the
         following new paragraph:

                  "(iv) Parent shall be permitted to purchase voluntarily New
                  Senior Notes from time to time after the Advantica Guarantee
                  has, pursuant to an agreement in form and substance reasonably
                  satisfactory to the Administrative Agent, been irrevocably
                  terminated, provided that (A) immediately after giving effect
                  to each such purchase, the Borrowers shall be in compliance,
                  on a pro forma basis, with the covenants set forth in Sections
                  6.11, 6.12, 6.13 and 6.14 of this Agreement, which shall be
                  recomputed as of the last day of the most recently ended
                  fiscal quarter of Parent as if such repurchase had occurred on
                  the first day of each relevant period for testing such
                  compliance, and Parent shall have delivered to the
                  Administrative Agent an officer's certificate to such effect,
                  (B) the aggregate consideration paid by Parent

<PAGE>

                                                                               4

                  with respect to any purchase of New Senior Notes pursuant to
                  this clause (iv) shall not exceed the lesser of (1) a
                  percentage separately agreed upon between the Administrative
                  Agent and Parent of the principal amount of such New Senior
                  Notes and (2) the Fair Market Value of such New Senior Notes,
                  (C) the aggregate consideration paid for the purchase of New
                  Senior Notes pursuant to this clause (iv) (excluding the
                  aggregate amount of accrued but unpaid interest in respect of
                  such New Senior Notes included in such consideration) shall
                  not exceed $50,000,000 less the positive difference (if any)
                  between (A) the aggregate amount paid by Parent at any time,
                  and (B) the aggregate amount paid back to Parent at any time,
                  in each case pursuant to the Advantica Guarantee, (D) no
                  Default or Event of Default shall have occurred or be
                  continuing or would result therefrom and (E) Parent promptly
                  cancels such New Senior Notes; ".

         (f) Section 6.15(a) of the Credit Agreement is hereby amended by
inserting the following new language after the first sentence of such Section:

                  "Parent shall not (i) own or acquire any assets other than
                  shares of capital stock of Parent's subsidiaries, assets owned
                  by Parent on June 20, 2000, other assets acquired by Parent
                  after such date in the ordinary course of Parent's business,
                  cash and Permitted Investments, provided that the amount of
                  such cash, together with the Fair Market Value of such
                  Permitted Investments, shall not at any time exceed $500,000
                  other than on any day on which (1) any payment is due in
                  respect of the New Senior Notes (and no Default or Event of
                  Default shall have occurred and be continuing), (2) Parent is
                  making any payment to purchase New Senior Notes pursuant to
                  Section 6.08(a) (iv), (3) any payment is due in respect of the
                  Advantica Guarantee (and no Default or Event of Default shall
                  have occurred and be continuing) or (4) any payment is due in
                  respect of any liabilities referred to below in clause (ii)(B)
                  or (C), in which event Parent may, during such day, hold
                  additional cash in an amount up to the aggregate amount of
                  such payment to enable Parent to make such payment) or (ii)
                  incur any liabilities (other than (A) liabilities under the
                  New Senior Notes Indenture, the Loan Documents and the
                  Advantica Guarantee, (B) liabilities imposed by law, including
                  tax liabilities, and (C) other liabilities incidental to its
                  existence and permitted business and activities)."

         (g) Section 1.02 of the Security Agreement is hereby amended by
substituting the text "Denny's,  Inc." for the text "Advantica Restaurant Group,
Inc." in the definition of the term "General Fund Account".

         (h) Section 5.01(d) of the Security Agreement is hereby amended by
substituting the text "Denny's, Inc." for the text "Parent" in the third
sentence of such Section.

                  SECTION 2. Amendment Fee. In consideration of the agreements
of the Required Lenders contained in this Amendment, the Borrower agrees to pay
to the Administrative Agent, for the account of each Lender that delivers an
executed counterpart of this Amendment on or prior to June 20, 2000, an
amendment fee (the "Amendment Fee") in an amount equal to 0.25% of such Lender's
Commitment as of such

<PAGE>

                                                                               5

date; provided that the Amendment Fee shall not be payable unless and until this
Amendment becomes effective as provided in Section 5 below.

                  SECTION 3.  Representations and Warranties.  Parent and the
Borrowers  represent and warrant to the Administrative  Agent and to each of the
Lenders that:

         (a) This Amendment has been duly authorized, executed and delivered by
Parent and each of the Borrowers and constitutes their legal, valid and binding
obligations, enforceable in accordance with its terms except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights generally and by
general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).

         (b) Before and after giving effect to this Amendment, the
representations and warranties set forth in Article III of the Credit Agreement
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
expressly relate to an earlier date.

         (c) Before and after giving effect to this Amendment, no Event of
Default or Default has occurred and is continuing.

                  SECTION 4. Releases. Upon the consummation of the FRD Sale, if
any, in accordance with the terms of the Credit Agreement, all Liens on the
capital stock of FRD under the Credit Agreement and the other Loan Documents
will be released.

                  SECTION 5. Conditions to Effectiveness. This Amendment shall
become effective as of the date first above written when the Administrative
Agent shall have received (a) counterparts of this Amendment that, when taken
together, bear the signatures of Parent, each of the Borrowers and the Required
Lenders and (b) the Amendment Fee.

                  SECTION 6. Credit Agreement. Except as specifically amended
hereby, the Credit Agreement shall continue in full force and effect in
accordance with the provisions thereof as in existence on the date hereof. After
the date hereof, any reference to the Credit Agreement shall mean the Credit
Agreement as amended hereby.

                  SECTION 7.  Loan Document.  This Amendment shall be a Loan
Document for all purposes.

                  SECTION 8.  Applicable Law.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

                  SECTION 9. Counterparts. This Amendment may be executed in two
or more counterparts, each of which shall constitute an original but all of
which when taken together shall constitute but one agreement. Delivery of an
executed counterpart of a signature page of this Amendment by telecopy shall be
effective as delivery of a manually executed counterpart of this Amendment.

                  SECTION 10.  Expenses.  Parent and the Borrowers agree to
reimburse the Administrative Agent for its out-of-pocket  expenses in connection
with this

<PAGE>

                                                                               6

Amendment, including the reasonable fees, charges and disbursements of Cravath,
Swaine & Moore, counsel for the Administrative Agent.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed by their respective authorized officers as of the
day and year first written above.

                                ADVANTICA RESTAURANT GROUP, INC.,

                                by   /s/   Kenneth E. Jones
                                   --------------------------------
                                Name: Kenneth E. Jones
                                Title: Vice President and Treasurer

                                DENNY'S, INC.,

                                by   /s/   Kenneth E. Jones
                                   --------------------------------
                                Name: Kenneth E. Jones
                                Title: Vice President and Treasurer

                                ADVANTICA SYSTEMS, INC.,

                                by   /s/   Kenneth E. Jones
                                   --------------------------------
                                Name: Kenneth E. Jones
                                Title: Vice President and Treasurer

                                THE CHASE MANHATTAN BANK, individually and as
                                Administrative Agent, Collateral Agent,
                                Swingline Lender and Issuing Bank,

                                by   /s/   Barry K. Bergman
                                   --------------------------------
                                Name: Barry K. Bergman
                                Title: Vice President

<PAGE>

                                                                               7

                                BHF (USA) CAPITAL CORPORATION,

                                by   /s/   Perry Forman

                                   --------------------------------
                                Name: Perry Forman
                                Title: Vice President

                                by /s/ Nina Zhou

                                   --------------------------------
                                Name: Nina Zhou
                                Title: Associate

                                FARALLON DINING INVESTORS LLC,

                                by   /s/   Meridee Moore

                                   --------------------------------
                                Name: Meidee Moore
                                Title: Managing Member

                                JACKSON NATIONAL LIFE INSURANCE COMPANY,

                                by

                                   --------------------------------
                                Name:
                                Title:

                                KZH CNC LLC,

                                by /s/ Susan Lee

                                   --------------------------------
                                Name: Susan Lee
                                Title: Authorized Agent

                                KZH PAMCO LLC,

                                by

                                   --------------------------------
                                Name:
                                Title:

                                FOOTHILL INCOME TRUST II, L.P.,

                                by   /s/   Dennis R. Ascher
                                   --------------------------------
                                Name: Dennis R. Ascher
                                Title: Managing Member

<PAGE>

                                                                               8

                                PAM CAPITAL FUNDING LP,

                                by

                                   --------------------------------
                                Name:
                                Title:

                                FLEET BUSINESS CREDIT CORPORATION,

                                by   /s/   Robert J. Price
                                   --------------------------------
                                Name: Robert J. Price
                                Title: Senior Vice President

                                TORONTO DOMINION (TEXAS), INC.,

                                by   /s/   Mark A. Baird
                                   --------------------------------
                                Name: Mark A. Baird
                                Title: Vice President

                                GENERAL ELECTRIC CAPITAL CORP.,

                                by

                                   --------------------------------
                                Name:
                                Title:

                                TRANSAMERICA BUSINESS CREDIT CORPORATION,

                                by   /s/    Perry Vavoules
                                   --------------------------------
                                Name: Perry Vavoules
                                Title: Senior Vice President

                                AMSOUTH BANK,

                                by   /s/   Kathleen F. Kerlinger
                                   --------------------------------
                                Name: Kathleen F. Kerlinger
                                Title: Attorney-in-Fact

<PAGE>NINTH AMENDMENT TO AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT

     THIS NINTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
("Amendment") is entered into as of the 20th day of June, 2000 between
DEUTSCHE FINANCIAL SERVICES CORPORATION ("DFSC"), DEUTSCHE FINANCIAL SERVICES
a division of Deutsche Bank Canada ("DFS Canada") (DFSC and DFS Canada are
collectively referred to as "DFS") and GEHL COMPANY ("Gehl") and its
subsidiaries, including but not limited to Hedlund Martin, Inc., Gehl Power
Products, Inc., Mustang Manufacturing Company, Inc. and Mustang Finance, Inc.
(collectively with Gehl, "Gehl Company").

                                   RECITALS:

     A. DFS and Gehl Company entered into that certain Amended and Restated
Loan and Security Agreement dated as of October 1, 1994, as amended from time
to time (the "Agreement") pursuant to which DFS is providing financing to Gehl
Company.

     B. DFS and Gehl Company wish to modify the terms of such financing as set
forth in this Amendment

                                   AGREEMENT:

     NOW, THEREFORE, for and in consideration of the foregoing and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, DFS and Gehl Company hereby agree to as follows:

     1.   Section 6.3 captioned "Financial Covenants" of the Agreement is
          restated in its entirety as follows:

          "6.3  Financial Covenants.  Beginning December 31, 1999 and
          continuing at all times thereafter, Gehl Company will maintain a
          tangible Net Worth and Subordinated Debt in the combined amount of
          not less than the sum of (a) FIFTY MILLION DOLLARS ($50,000,000.00),
          and (b) a ratio of Debt to Tangible Net Worth and Subordinated Debt
          of not more than three and six tenths to one (3.6:1).  For purposes
          of this Section:  (i) 'Debt' means the total sum of all creditor
          claims against Gehl Company minus Subordinated Debt; (ii) 'Tangible
          Net Worth' means the net book value of assets less liabilities
          determined on a consolidated basis and in accordance with generally
          accepted accounting principles ('GAAP') consistently applied,
          excluding from such assets all Intangibles;  (iii) 'Intangibles'
          means and includes general intangibles (as that term is defined in
          the Uniform Commercial Code), accounts receivable from officers,
          directors and stockholders, and affiliated companies, leasehold
          improvements net of depreciation, licenses, good will, prepaid
          expenses, covenants not to compete, the excess of cost over book
          value of acquired assets, franchise fees, organizational costs,
          finance reserves held for recourse obligations, capitalized research
          and development costs, the categories of assets listed on Exhibit C
          attached hereto which are marked as 'intangible' and such similar
          intangible assets under GAAP; (iv) 'Subordinated Debt' means all of
          Gehl Company's indebtedness which is subordinated to the payment of
          its liabilities to DFS by an agreement in form and substance
          satisfactory to DFS. Gehl will report its Tangible Net Worth and Debt
          to Tangible Net Worth ratio to DFS quarterly, in accordance with
          Section 6.1(m)(2) of this Agreement.  If Gehl Company violates any
          of the foregoing financial covenants to DFS, the parties agree: (a)
          that Gehl Company will pay interest to DFS, payable as provided in
          Section 2.1, on the average daily outstanding balance under the
          Credit Facility, at a rate that is the lesser of:  (i)(A)in the case
          of U.S. Loans, four and one-half (4.5%) per annum higher than the
          U.S. LIBOR Rate then in effect, (B) in the case of Canadian Loans,
          five percent (5.0%) per annum higher than the Banker's Acceptance
          Rate then in effect, and (ii) the highest rate from time to time
          permitted by applicable law from the time when Gehl Company violates
          any of the financial covenants until such time as Gehl Company has
          cured its violation of its financial covenants to DFS; (b) DFS may
          elect in its sole discretion, to amend its eligibility formula of
          and its advance rate against the Accounts; and (c) DFS may elect to
          declare Gehl Company in default under this Agreement and exercise
          any of DFS' rights pursuant to Section 7 of this Agreement"

     2.   Except as expressly modified hereby, the Agreement remains
          unmodified and in full force and effect and the parties ratify and
          confirm the Agreement as modified hereby.  Gehl Company reaffirms
          that the representations and warranties of Gehl Company as set forth
          in the Agreement are true and correct as of the date of the
          Agreement and as of the date of this Amendment.  All terms defined
          herein shall have the meanings defined herein for all purposes under
          the Agreement.  This Amendment shall be governed by the internal
          laws of the state whose law governs the Agreement.  This Amendment
          may be executed in one or more counterparts, each of which shall be
          deemed an original and all of which shall constitute the same
          instrument.

     IN WITNESS WHEREOF, DFS and Gehl Company have executed this Amendment as
of the date and year first above written.

GEHL COMPANY                  HEDLUND MARTIN, INC.

By:  /s/ Kenneth P. Hahn      By:  /s/ Kenneth P. Hahn
Name:  Kenneth P. Hahn        Name:  Kenneth P. Hahn
Title:  Vice President        Title:  Treasurer

GEHL POWER PRODUCTS, INC.     MUSTANG MANUFACTURING COMPANY, INC.

By:  /s/ Kenneth P. Hahn      By:  /s/ Kenneth P. Hahn
Name:  Kenneth P. Hahn        Name:  Kenneth P. Hahn
Title:  Treasurer             Title:  Vice President

MUSTANG FINANCE, INC.

By:  /s/ Kenneth P. Hahn
Name:  Kenneth P. Hahn
Title:  Vice President

DEUTSCHE FINANCIAL SERVICES   DEUTSCHE FINANCIAL SERVICES
CORPORATION                   a division of Deutsche Bank Canada
By:  /s/ Thomas L. Meredith   By:  /s/ Wm. Blight
Name:  Thomas L. Meredith     Name:  Wm. Blight
Title:  President,            Title:  Senior Vice President
Wholesale Finance Group

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