Document:

EX-10.27

 Exhibit 10.27 
  

 
 FORM OF POPULAR, INC. 

2016 LONG-TERM EQUITY INCENTIVE AWARD 

AND AGREEMENT 

Recipient: 
 The
Compensation Committee of the Board of Directors of Popular, Inc. (the “Committee”) awarded you on January 27, 2016 (the “Grant Date”) a Long-Term Incentive Award consisting of Restricted Stock
(“Restricted Stock”) and Performance Shares (“Performance Shares” and, in conjunction with the Restricted Stock, the “Award”). 

This award agreement (the “Award Agreement’), dated as of the Grant Date, sets forth the terms and conditions of your Award.
This Award is made under the Popular, Inc. 2004 Omnibus Incentive Plan, as amended (the “Plan”) and, except as otherwise provided herein, is subject to the terms of the Plan. Capitalized terms used but not otherwise defined in this
Award Agreement have the meanings given in the Plan. 
 1. Award. The number of shares of Restricted Stock and Performance Shares
subject to this Award is set forth in Annex 1 hereto. The Award will vest as set forth below. 
 2. Vesting; Payout. 

(a) Restricted Stock Vesting. Except as otherwise stated in this Section 2, you shall become vested in the Restricted Stock as
follows (each of the dates described in (i) and (ii) below, a “Restricted Stock Vesting Date”): 
 (i) 80%
of your Restricted Stock shall vest in equal annual installments on each of the first four (4) anniversaries of the Grant Date specified in Annex 1, and 

(ii) 20% of your Restricted Stock shall vest upon termination of your employment after attaining (x) age 55 with 10 years of service with
the Corporation or (y) age 60 with 5 years of service with the Corporation. 
 Years of service shall be determined pursuant to the
Corporation’s personnel policies and procedures. 
 (b) Performance Shares Vesting. Except as otherwise stated in this
Section 2, you shall become vested in the Performance Shares on the third anniversary of the Grant Date specified in Annex 1, subject to the Corporation’s achievement of the Performance Goals specified in Annex 1 during the Performance
Cycle as certified by the Committee (hereinafter the “Performance Shares Vesting Date” and, together with the Restricted Stock Vesting Date, the “Vesting Date”). The Performance Goals will be based on two
performance metrics weighted equally: the Relative Total Shareholder 

 
Return (the “TSR”) and the Absolute Earnings per Share (the “EPS”) goals. The Performance Cycle is a three (3) year period beginning on January 1 of the calendar
year of the Grant Date and ending on December 31 of the third year. Each Performance Goal will have a defined minimum threshold (i.e., minimum result for which an incentive would be earned), target (i.e., result at which 100% of the incentive would
be earned) and maximum level of performance (i.e., result at which 1.5 times the incentive target would be earned). 
 (c) Approved
Retirement. Upon an Approved Retirement after attaining (x) age 55 with 10 years of service with the Corporation or (y) age 60 with 5 years of service with the Corporation: (1) your outstanding Restricted Stock shall fully vest;
and (2) your outstanding Performance Shares shall continue outstanding and vest in full on the Performance Shares Vesting Date in accordance with the actual results of the Performance Goals during the Performance Cycle. 

(d) Vesting upon Retirement on or after age 50 before attaining age 55 and 10 years of service. The Committee, at its discretion, may
accord the same treatment accorded in Section 2(c) above if you retire from your employment on or after age 50, and before attaining age 55 and 10 years of service, provided the sum of your age and years of service is at least 75. 

(e) Death. Provided that on the date of your death you are still employed by the Corporation and your rights in respect of your Award
have not been previously terminated, any then unvested outstanding Award shall immediately vest and be paid to the representative of your estate promptly after your death. In the case of the Performance Shares, the number of shares will be
calculated as if the target number of Performance Shares had in fact been earned. 
 (f) Disability. If you become subject to
Disability while you are still employed by the Corporation, any then unvested outstanding Award shares shall vest and shall be paid to you promptly after you become subject to Disability. In the case of the Performance Shares, the number of shares
will be calculated as if the target number of Performance Shares had in fact been earned. 
 (g) Change of Control. If your
employment is terminated by the Corporation or any successor entity thereto without Cause, or if you terminate your employment for Good Reason, in each case upon or within two years after a Change of Control, prior to a Vesting Date, and provided
your rights in respect of the shares of your unvested Award have not previously terminated, the shares of your unvested Award shall immediately vest and be delivered to you promptly after such termination of employment. In the case of the
Performance Shares, the number of shares will be calculated as if the target number of Performance Shares had in fact been earned. 
 (h)
Termination without Cause. If the Corporation terminates your employment without Cause you will receive payment of the Award on a prorated basis based on the number of full months in the vesting schedule in which you were an active employee
(with a partial month worked counted as a full month if you were an active employee for 15 days or more in the month) and such reduced Award will vest immediately upon your termination of employment, calculated in the case of Performance Shares as
if the target number of Performance Shares had in fact been earned, as provided in the Plan. 

  
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 (i) Payout. The transfer restrictions on the applicable number of whole shares of
Restricted Stock shall lapse on each Vesting Date or such other vesting date as determined in this Section 2 and in the terms of the Plan. In the case of the Performance Shares, the criteria that the Committee will utilize to determine the
number of shares earned will be based upon the actual performance results during the Performance Cycle. 
 3. Termination of Award.

 (a) Except as provided herein, your rights in respect of your outstanding unvested Award shares shall immediately terminate, and no
shares shall be paid in respect thereof, if at any time prior to the respective Vesting Date you terminate your employment. 
 (b) If the
Corporation terminates your employment for Cause, your Award shares shall be cancelled and the provisions under the Plan will apply. 
 4.
Non-transferability. This Award (or any rights and obligations hereunder) may not be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of or hedged, in any manner (including through the use of any
cash-settled instrument), whether voluntarily or involuntarily and whether by operation of law or otherwise, other than by will or by the laws of descent and distribution. 

5. Withholding, Consents and Legends. 

(a) You shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any
interest that accrues thereon, incurred in connection with your Award. The Corporation will withhold shares of Common Stock with a value equal to the payment of the taxes that the Corporation determines it is required to withhold under applicable
tax laws with respect to the Award (with such withholding obligation determined based on any applicable minimum statutory withholding rates), in connection with the vesting of the shares thereof, and cause the restrictions on the remainder of the
shares subject to your Award to lapse pursuant to Section 2(i). The Corporation will use the Fair Value of the Common Stock in order to determine the number of shares to be withheld. If you wish to remit cash to the Corporation (through payroll
deduction or otherwise), in each case in an amount sufficient in the opinion of the Corporation to satisfy such withholding obligation, you must notify the Corporation in advance and do so in compliance with all applicable laws and pursuant to such
rules as the Corporation may establish from time to time, including, but not limited to, the Corporation’s Insider Trading Policy. 

(b) Your right to receive shares pursuant to the Award is conditioned on the receipt to the reasonable satisfaction of the Committee of any
required consent that the Committee may reasonably determine to be necessary or advisable. By accepting delivery of the shares, you acknowledge that you are subject to Corporation’s Insider Trading Policy. 

  
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 6. Section 409A. Shares awarded under this Award Agreement are intended to be exempt
from Section 409A of the U.S. Code, to the extent applicable, and this Award Agreement is intended to, and shall be interpreted, administered and construed consistent therewith. The Committee shall have full authority to give effect to the
intent of this Section 6. 
 7. No Rights to Continued Employment. Nothing in this Award Agreement shall be construed as giving
you any right to continued employment by the Corporation or any of its affiliates or affect any right that the Corporation or any of its affiliates may have to terminate or alter the terms and conditions of your employment. 

8. Successors and Assigns of the Corporation. The terms and conditions of this Award Agreement shall be binding upon, and shall inure
to the benefit of, the Corporation and its successor entities. 
 9. Committee Discretion. Subject to the terms of the Plan, the
Committee shall have full discretion with respect to any actions to be taken or determinations to be made in connection with this Award Agreement, and its determinations shall be final, binding and conclusive. 

10. Amendment. The Committee reserves the right at any time to amend the terms and conditions set forth in this Award Agreement;
provided that, notwithstanding the foregoing, no such amendment shall materially adversely affect your rights and obligations under this Award Agreement without your consent (or the consent of your estate, if such consent is obtained after your
death), and provided, further, that the Committee may not accelerate or postpone the payout of shares to occur at a time other than the applicable time provided for in this Award Agreement. Any amendment of this Award Agreement shall be in
writing signed by an authorized member of the Committee or a person or persons designated by the Committee. 
 11. Adjustment; Other Plan
Provisions. Subject to Section 10, the Committee shall adjust equitably the terms of this Award in accordance with Section 5.4 of the Plan, if applicable. Subject to the terms of this Award Agreement, the Restricted Stock shall be subject to the
terms of the Plan, including, but not limited to, the provisions of Section 8.4 related to dividends and voting rights. Cash dividends paid on the Restricted Stock and on all of the Common Stock that may be subsequently acquired with such cash
dividends, will be invested in the purchase of additional shares of Common Stock of the Corporation in accordance with the Popular, Inc. Dividend Reinvestment and Stock Purchase Plan (DRIP); such shares are not subject to the restrictions and are
immediately vested. Dividends on Performance Shares will accrue during the Performance Cycle and be paid at vesting based on the actual number of shares that vest. 

12. The Restricted Stock shall be held in custody by the Fiduciary Services Division of Banco Popular de Puerto Rico. 

  
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 13. Governing Law. This award shall be governed by and construed in accordance with the
laws of Puerto Rico, without regard to principles of conflicts of laws. 
 14. Incentive Recoupment. This award shall be subject to
the terms of the Popular, Inc. Incentive Recoupment Guideline in effect as of the Grant Date and as such guideline may be required to be modified in accordance with applicable law or regulation. 

15. Headings. The headings in this Award Agreement are for the purpose of convenience only and are not intended to define or limit the
construction of the provisions hereof. 
 IN WITNESS WHEREOF, POPULAR, INC. and the Recipient caused this Award Agreement to be duly
executed and delivered as of the Grant Date. 
  

							
	POPULAR, INC.	 		 	ACCEPTED:
				
	By:	 	[INSERT NAME OF REPRESENTATIVE]	 		 	[INSERT NAME OF RECIPIENT]
	Title:	 	[INSERT TITLE OF REPRESENTATIVE]	 		 	
			
	  
	 		 	  

	Signature	 		 	Signature

  
  
  

  
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 ANNEX 1 

POPULAR,INC. 
 2016
LONG-TERM EQUITY INCENTIVE AWARD 
  

			
	Recipient:	  	Employee Number:

 Grant Date: 
 Total Dollar Value
of Award: $ 
 Common Stock Market Price as of closing on Grant Date: $ 

Restricted Stock Scheduled Vesting Dates: 
 Dollar
Value of Restricted Stock Award: $ 
 Shares of Restricted Stock Awarded: # 
  

			
	  

             Shares (80%) as follows:

 
              Shares (20%)

             Shares (20%)

             Shares (20%)

             Shares (20%)

 
	    	 January 27, 2017

January 27, 2018
 January 27, 2019

January 27, 2020
  

	 	 
	             Shares (20%)	    	 Upon termination of your employment after
attaining:
 (i) age 55 with 10 years of service, or (ii) age 60 with 5 years of service.

 

  
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 Performance Shares Vesting (Vesting Date: January 27, 2019): 

Dollar Value of Performance Shares Award: $ 
 Grant Date:
January 27, 2016 
 Common Stock Market Price as of closing on Grant Date: $ 

Total Target Number of Performance Shares: # 
  

					
	  

Relative Total Shareholder Return (TSR)1 -

 
	  	  

Percentile Rank among

Comparator Group
  
	  	
# of Shares Earned
  

	 	 	 
	
Opening Price = $29.49
  

Target Number of Performance Shares:
	  	75th Percentile or above	  	(l.5x target shares)
	  	50th Percentile	  	(lx target shares)
	  	25th Percentile	  	(0.5x target shares)
	  	Below 25th Percentile	  	0
	 
	  

Absolute Earnings Per Share (EPS)2 -

Cumculative annual EPS 2016-2018
  
	  	 EPS

 
	  	  

Shares Earned
 (% of
Target)
  

	 	  	 	  	(l.5x target shares)
	  	 	  	(lx target shares)
	 Target Number of Performance Shares:
	  	 	  	(0.5x target shares)
	 	  	 	  	0
	  

Results between threshold, target and maximum performance will be interpolated to determine vesting award

 

  
  

	1 	TSR will be calculated as [(Closing Price at end of period * (1 + number of shares purchased assuming reinvestment of dividends))/Opening Price at beginning of period] – 1 

 

	 	•	 	Closing Price and Opening Price are based on the preceding 60 trading days average in order to mitigate against share · price volatility of point-in-time metrics. 

 

	 	•	 	Opening price = average price 10/7/15-12/31/15 

  

	 	•	 	Closing price = average price 10/5/18-12/31/18 

  

	 	•	 	TSR calculations shall assume that dividends are reinvested on the ex-dividend date (i.e., the date a dividend asset is guaranteed). 

Comparator Group -- SNL US Banks greater than $10 billion in assets – Performance will be based on the composition of the group at the end of the 3-year
Performance Cycle. 
 If Popular’s absolute TSR is negative, payout will be limited to a maximum of 100% of target. 

 

	2 	Cumulative total of annual basic EPS for 3 years (2016-2018). The Committee may adjust the goal or results to reflect a core profitability that would not be artificially inflated or deflated by extraordinary or
nonrecurring items, including, but not limited to, the impact of the pending Puerto Rico tax reform, sales of non-earning assets, sales of branches or other businesses, certain business acquisition costs and revenues, extraordinary events or
charitable contributions, severance costs and certain litigation and settlement costs, among others. 

  
 7Exhibit

EXECUTION VERSION
CID #:  000016249

FIRST AMENDMENT TO 
SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of October 30, 2015, is by and among DENNY’S, INC., a Florida corporation (“Denny’s” or the “Borrower”), DENNY’S CORPORATION, a Delaware corporation (“Parent”), each of those Subsidiaries of Parent party hereto (Parent and such Subsidiaries, each a “Guarantor” and collectively, the “Guarantors”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent on behalf of the Lenders under the Credit Agreement (as hereinafter defined) (in such capacity, the “Administrative Agent”), and the Lenders party hereto.  

W I T N E S S E T H

WHEREAS, the Borrower, the Parent, the other Guarantors, certain banks and financial institutions from time to time party thereto (the “Lenders”) and the Administrative Agent are parties to that certain Second Amended and Restated Credit Agreement dated as of March 30, 2015 (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement); 

WHEREAS, the Loan Parties have requested that the Lenders make certain amendments to the Credit Agreement, including to increase the aggregate Commitments of the Lenders under the Revolving Credit Facility, as set forth herein; and

WHEREAS, the Lenders have agreed to amend the Credit Agreement, and are willing to provide a portion of the increase of the aggregate Commitments under the Revolving Credit Facility, in each case, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I
AMENDMENTS TO CREDIT AGREEMENT

1.1    Amendment to “Applicable Percentage”.  The definition of “Applicable Percentage” in Section 1.01 of the Credit Agreement is hereby amended by deleting the last sentence thereof and replacing it with the following:

The Applicable Percentage of each Lender is set forth (i) as of the First Amendment Effective Date, opposite the name of such Lender on Schedule 2.01 of the Disclosure Schedules or (ii) in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

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1.2    Amendment to “Applicable Rate”.  The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended by deleting the pricing grid therein and replacing it with the following pricing grid:

	
							
	Pricing Tier
	Consolidated Leverage Ratio
	Commitment Fee
	Eurodollar Rate +
	Standby Letter of Credit Fees
	Commercial Letter of Credit Fees
	Base Rate +

	I
	Greater than or equal to 3.00 to 1.00
	0.35%
	2.25%
	2.25%
	2.25%
	1.25%

	II
	Greater than or equal to 2.50 to 1.00, but less than 3.00 to 1.00
	0.30%
	2.00%
	2.00%
	2.00%
	1.00%

	III
	Greater than or equal to 2.00 to 1.00, but less than 2.50 to 1.00
	0.25%
	1.75%
	1.75%
	1.75%
	0.75%

	IV
	Greater than or equal to 1.50 to 1.00, but less than 2.00 to 1.00
	0.20%
	1.50%
	1.50%
	1.50%
	0.50%

	V
	Less than 1.50 to 1.00
	0.15%
	1.25%
	1.25%
	1.25%
	0.25%

1.3    Amendment to “Consolidated Funded Indebtedness”.  The proviso at the end of the first sentence of the definition of “Consolidated Funded Indebtedness” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

provided, however, that (i) obligations of Parent and its Subsidiaries in respect of (A) Swap Contracts entered into for purposes of hedging against fluctuations in foreign currency, (B) Swap Contracts entered into for purposes of hedging against fluctuations in interest rates and (C) Swap Contracts entered into in connection with any accelerated stock repurchase program and (ii) contingent reimbursement obligations in respect of Letters of Credit shall be excluded for purposes of determining Consolidated Funded Indebtedness.  

1.4    Amendment to “Disclosure Schedules”.  The definition of “Disclosure Schedules” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Disclosure Schedules” means a document in form and substance reasonably satisfactory to the Administrative Agent, dated as of the Closing Date, setting forth disclosure schedules of the Loan Parties and their Subsidiaries in respect of matters referenced in this Agreement, and as amended from time to time.

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1.5    Amendment to “Incurrence Ratio”.  The definition of “Incurrence Ratio” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“Incurrence Ratio” means, as of any date of determination, the maximum Consolidated Leverage Ratio permitted under Section 7.10(a) for such date, less 0.50.
1.6    Amendment to “Revolving Credit Facility”.  The definition of “Revolving Credit Facility” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Revolving Credit Facility” means, at any time, the aggregate amount of the Lenders’ Commitments at such time.  As of the First Amendment Effective Date, the Revolving Credit Facility is $325,000,000.
1.7    Amendment to Section 1.01.  Section 1.01 of the Credit Agreement is hereby amended by inserting the following new definition in the appropriate alphabetical order therein:

“First Amendment Effective Date” means October 30, 2015.

1.8    Amendment to Section 7.03(g).  Section 7.03(g) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(g)    additional Investments in an amount not to exceed (x) $25,000,000 (in the aggregate together with any other additional Investments made pursuant to this clause (g) outstanding at such time) if at the time such Investment is consummated and after giving effect to such Investment on a pro forma basis, the Consolidated Leverage Ratio is greater than or equal to 3.00 to 1.0 or (y) $50,000,000 (in the aggregate together with any other additional Investments made pursuant to this clause (g) outstanding at such time) if at the time such Investment is consummated and after giving effect to such Investment on a pro forma basis, the Consolidated Leverage Ratio is less than 3.00 to 1.0; provided that the aggregate amount of Investments made pursuant to this clause (g) in any single Person (including any franchisee) shall not exceed $5,000,000 at any one time outstanding;
1.9    Amendment to Section 7.03(h).  Section 7.03(h) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(h)    Investments consisting of Guarantees by any Loan Party of obligations of franchisees or licensees or the Purchasing Coop (to the extent the Purchasing Coop is acting on behalf of franchisees or licensees), consistent with past practices and on usual and customary terms for transactions of this type, in an amount not to exceed, (x) the greater of (I) $30,000,000 and (II) an amount equal to 5.0% of Consolidated Total Assets (in the aggregate together with any other Investments made pursuant to this clause (h) outstanding at such time), if at the time such Investment is consummated and after giving effect to such Investment on a pro forma basis, the Consolidated Leverage Ratio is greater than or equal to 3.00 to 1.0 or (y) the greater of (I) $50,000,000 and (II) an 

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amount equal to 10.0% of Consolidated Total Assets (in the aggregate together with any other Investments made pursuant to this clause (h) outstanding at such time), if at the time such Investment is consummated and after giving effect to such Investment on a pro forma basis, the Consolidated Leverage Ratio is less than 3.00 to 1.0;
1.10    Amendment to Section 7.03(i).  The introductory clause of Section 7.03(i) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(i)    Investments consisting of the purchase or other acquisition of all of the Equity Interests in, or assets that constitute a business unit (which, for the avoidance of doubt, may consist of a single or multiple restaurant locations) or all or a substantial part of the business or assets of, any Person that, upon the consummation thereof, such Equity Interests or property, as applicable, will be wholly-owned directly by a Loan Party or one or more of its wholly-owned Subsidiaries (including as a result of a merger or consolidation); provided that, with respect to each purchase or other acquisition made pursuant to this Section 7.03(i):
1.11    Amendment to Section 7.05(a)(iv).  Section 7.05(a)(iv) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(iv)    commencing with the 2015 fiscal year of Parent, the Loan Parties may make Restricted Payments in any fiscal year not otherwise permitted by this Section 7.05 in an aggregate amount not to exceed $50,000,000 if at the time such Restricted Payment is made and after giving effect to any such Restricted Payment on a pro forma basis, the Consolidated Leverage Ratio is greater than or equal to 3.00 to 1.00; provided, however, if the Consolidated Leverage Ratio is less than 3.00 to 1.00 at the time any such Restricted Payment is made and after giving effect to any such Restricted Payment on a pro forma basis, the Loan Parties may make unlimited Restricted Payments in any fiscal year; provided, further, however that in each case, (x) at the time of the making of any such Restricted Payment and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing or would result therefrom and (y) after giving effect to any such Restricted Payment, there is at least $20,000,000 in availability under the Revolving Credit Facility.
1.12    Amendment to Section 7.10(a).  Section 7.10(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(a)    Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of each Measurement Period to be greater than 3.50 to 1.00.
1.13    Amendment to Schedule 2.01 of the Disclosure Schedules.  Schedule 2.01 of the Disclosure Schedules is hereby amended by replacing such schedule with Schedule 2.01 attached hereto.  As of the First Amendment Effective Date, each Lender, by its execution of this Amendment, hereby acknowledges and agrees to its revised Commitments in the aggregate principal amount set forth on Schedule 2.01 attached hereto (after giving effect to this Amendment).

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ARTICLE II
CONDITIONS

2.1    Closing Conditions.  This Amendment shall be deemed effective as of the date set forth above (the “First Amendment Effective Date”) upon satisfaction of the following conditions (in form and substance satisfactory to the Administrative Agent:

(a)    Executed Amendment.  The Administrative Agent shall have received a copy of this Amendment duly executed by the Borrower, the other Loan Parties, the Administrative Agent and the Required Lenders (including each Lender providing an increase to its Commitments under the Revolving Credit Facility).

(b)    Organization Documents.  The Administrative Agent shall have received (i) such certificates of resolutions or other action approving and adopting this Amendment and the increase of the aggregate Commitments, and (ii) such documents and certifications to evidence that each Loan Party is validly existing, in good standing in the state or other jurisdiction of its incorporation or organization, in each case in form and substance reasonably acceptable to the Administrative Agent.

(c)    Officer’s Certificate.  The Administrative Agent shall have received a certificate from a Responsible Officer of the Borrower certifying that before and after giving effect to the increase of the aggregate Commitments on the First Amendment Effective Date, (A) the representations and warranties set forth in Article V of the Credit Agreement and in any other Loan Document are true and correct in all material respects as of the date hereof (except for (i) those which expressly relate to an earlier date, which shall be true and correct in all material respects as of such earlier date, (ii) those that are qualified by materiality or reference to Material Adverse Effect, which are true and correct in all respects and (iii) those contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent financial statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement, (B) the Parent and its Subsidiaries are in compliance with the Consolidated Leverage Ratio as set forth in Section 7.10(a) of the Credit Agreement, on a pro forma basis after giving effect to increase of the aggregate Commitments on the First Amendment Effective Date, recomputed as of the last day of the most recently ended fiscal quarter of Parent for which financial statements are available and (C) no Default exists.

(d)    Solvency Certificate.  The Parent shall have delivered to the Administrative Agent a certificate attesting to the Solvency of each Loan Party before and after giving effect to this Amendment, from the chief financial officer of Parent.

(e)    Legal Opinion.  The Borrower shall have delivered to the Administrative Agent a favorable opinion of Alston & Bird LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, covering such matters relating to this Amendment as the Administrative Agent shall reasonably request.

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(f)    Fees and Out of Pocket Costs.  The Administrative Agent shall have received upfront fees for the account of each Lender providing an increase to its Commitments under the Revolving Credit Facility and the Borrower shall have paid any and all reasonable out-of-pocket costs incurred by the Administrative Agent (including the fees and expenses Moore & Van Allen PLLC as legal counsel to the Administrative Agent) and all other fees and amounts required to be paid to the Administrative Agent in connection with this Amendment.

ARTICLE III 
MISCELLANEOUS

3.1    Amended Terms.  On and after the date hereof, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

3.2    Representations and Warranties of the Loan Parties.  Each of the Loan Parties represents and warrants as follows:

(a)    Each Loan Party has all requisite power and authority and has taken all necessary corporate and other action to authorize the execution, delivery and performance of this Amendment in accordance with its terms.  

(b)    This Amendment has been duly executed and delivered by the duly authorized officers of each Loan Party that is a party hereto and constitutes a legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms.

(c)    No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required for the execution, delivery, performance, validity or enforceability of this Amendment.

(d)    The representations and warranties set forth in Article V of the Credit Agreement and in any other Loan Document are true and correct in all material respects as of the date hereof (except for (i) those which expressly relate to an earlier date, which shall be true and correct in all material respects as of such earlier date, (ii) those that are qualified by materiality or reference to Material Adverse Effect, which are true and correct in all respects and (iii) those contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent financial statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement).

(e)    No event has occurred and is continuing which constitutes a Default or an Event of Default.

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(f)    The Collateral Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Administrative Agent, for the benefit of the Lenders, which security interests and Liens are perfected in accordance with the terms of the Collateral Documents and prior to all Liens other than Permitted Liens.

(g)    Each Guarantor affirms all of its obligations under the Loan Documents and agrees that this Amendment and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Loan Documents.

(h)    The Obligations of the Loan Parties are not reduced or modified by this Amendment (except as expressly set forth in this Amendment) and are not subject to any offsets, defenses or counterclaims.

3.3    Reaffirmation of Obligations.  Each Loan Party hereby ratifies the Credit Agreement and each other Loan Document to which it is a party and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement and each other Loan Document to which it is a party applicable to it and (b) that it is responsible for the observance and full performance of its respective obligations under the Loan Documents.

3.4    Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

3.5    Expenses.  The Borrower agrees to pay all reasonable costs and expenses of Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Administrative Agent’s legal counsel.

3.6    Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

3.7    Counterparts; Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be as delivery of a manually executed counterpart of this Amendment.

3.8    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

3.9    Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.

7
CHAR1\1427306v6

3.10    Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, services of process and waiver of jury trial provisions set forth in Sections 10.14 and 10.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

[Signature pages to follow]

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

BORROWER:    DENNY’S, INC.,
a Florida corporation
By: /s/ Ross Nell               
Name: Ross Nell 
Title:  Vice President, Tax and Treasurer
GUARANTORS:    DENNY’S CORPORATION,
a Delaware corporation
By: /s/ Ross Nell                 
Name: Ross Nell 
Title:  Vice President, Tax and Treasurer
DENNY’S REALTY, LLC,
a Delaware limited liability company 

		
	By:
	DFO, LLC, its Sole Member

By:   Denny’s Inc., its Sole Member

By: /s/ Ross Nell             
Name:  Ross Nell 
Title:  Vice President, Tax and   
Treasurer

DFO, LLC,
a Delaware limited liability company
		
	By:
	Denny’s Inc., its Sole Member

By: /s/ Ross Nell              
Name:  Ross Nell 
Title:  Vice President, Tax and Treasurer

AGENT AND LENDERS:            WELLS FARGO BANK, NATIONAL 
ASSOCIATION, as Administrative Agent, 
Issuing Lender and Lender

By: /s/ Darcy McLaren             
Name:     Darcy McLaren 
Title: Director

REGIONS BANK
By:       /s/ Jake Nash             
Name:  Jake Nash  
Title:    Managing Director    

CITIZENS BANK, N.A. 

By:        /s/ Christopher Wickles             
Name:   Christopher Wickles 
Title:     Senior Vice President

CADENCE BANK, N.A.
By:        /s/ John M. Huss             
Name:   John M. Huss 
Title:     Managing Director
FIFTH THIRD BANK
By:       /s/ Jeffrey K. Hoffmann         
Name:  Jeffrey K. Hoffmann  
Title:    Senior Vice President

BANK OF AMERICA, N.A.
By:       /s/ Anthony Luppino         
Name:  Anthony Luppino 
Title:    Vice President
BANK OF THE WEST 
By:       /s/ Mary King             
Name:  Mary King 
Title:    Vice President

BRANCH BANKING & TRUST COMPANY
By:       /s/ Stuart M. Jones         
Name:  Stuart M. Jones 
Title:    Senior Vice President

MUFG UNION BANK, N.A. 
By:       /s/ Michael Gardner         
Name:  Michael Gardner 
Title:    Director

SYNOVUS BANK 
By:       /s/ Mike Sawicki             
Name:  Mike Sawicki 
Title:    Corporate Banking

8
CHAR1\1427306v6

Schedule 2.01

Commitments and Applicable Percentages

	
						
	

Lender
	Revolving Credit Commitment Amount
	Revolving Credit Commitment Percentage

	 
	 
	 

	Wells Fargo Bank, National Association
	

	$58,000,000.00
	

	17.846153846
	%

	Regions Bank
	

	$45,500,000.00
	

	14.000000000
	%

	Citizens Bank, N.A.
	

	$39,000,000.00
	

	12.000000000
	%

	Cadence Bank, N.A.
	

	$32,500,000.00
	

	10.000000000
	%

	Fifth Third Bank
	

	$25,000,000.00
	

	7.692307692
	%

	Bank of America, N.A.
	

	$25,000,000.00
	

	7.692307692
	%

	Bank of the West
	

	$25,000,000.00
	

	7.692307692
	%

	Branch Banking and Trust Company
	

	$25,000,000.00
	

	7.692307692
	%

	MUFG Union Bank, N.A.
	

	$25,000,000.00
	

	7.692307692
	%

	Synovus Bank
	

	$25,000,000.00
	

	7.692307692
	%

	 
	 
	 

	Total
	

	$325,000,000.00
	

	100.0
	%

CHAR1\1427306v6

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