Document:

Exhibit 10.1

December 21, 2016

VIA EMAIL

Rick Bloom

15652 Woodvale Road

Encino, CA 91436

rickbloom@roadrunner.com

Dear Rick,

On behalf of Support.com, Inc., a Delaware corporation (“the Company”), we are pleased to offer you the position of interim President and Chief Executive Officer, reporting to the Company’s Board of Directors (“Board”).  You will be assigned to our headquarters office at the address listed below. If you timely accept this offer, your start date is retroactive to October 28, 2016 (“Start Date”).

The offer will include a monthly salary of forty thousand dollars ($40,000.00). The monthly base salary will be paid bi-weekly in accordance with the Company’s normal payroll procedures.  During your employment, you will be reimbursed by the Company for all reasonable costs related to your travel to and from your principle residence and our headquarters in Redwood City, California, including but not limited to, airfare, lodging, and meals. Such reimbursement amounts will be paid in accordance with the Company’s standard reimbursement policy and its normal payroll practices.  To the extent such reimbursement results in taxable income to you, the Company will provide you with an additional “gross-up” payment for federal and state income taxes.  Such payment will be made at the same time as the reimbursement payment.

Pursuant to the charter of the Compensation Committee, your performance and compensation terms will be reviewed at least annually.

You acknowledge that compensation that you receive from the Company may be subject by law to certain recoupment (“clawback”) requirements applicable to public companies.

As a Company employee, you will also be eligible to receive employee benefits under the terms of the Company’s standard employee benefits plans, which currently include health care (medical, vision, prescription drug, dental, hospital) and life and disability insurance (life, accidental death and dismemberment, long term disability, short term disability), ten (10) public holidays in accordance with the Company’s published schedule, and two (2) floating holidays, other paid time off (“PTO”) up to twenty (20) days per year.  You should note that the Company reserves the right to modify all compensation and benefits from time to time, as it deems prudent and in the best interests of the Company.

You are also eligible for severance benefits as described in the attached Addendum.

You should be aware that your employment with the Company is for no specified period and constitutes at will employment.  As a result, you are free to resign at any time, for any reason or for no reason.  Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause.

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 2

Your employment with us is contingent upon and at all times subject to your eligibility for employment as our interim President and CEO under state and federal law. Without limiting the foregoing, for purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States.  Such documentation must be provided to us during your orientation period (schedule to be confirmed), or our employment relationship with you may be terminated.  Similarly, for the purposes of state law, because the Company is a registered “Alarm Company” in California with the Bureau of Security and Investigative Services (“BSIS”) as required by one or more program contracts, you will be required to provide to the Company documentary evidence of your identity and eligibility to serve as an officer of a registered Alarm Company.

You agree that, during the term of your employment with the Company, you will not actively engage in any other employment, occupation, consulting or other business directly or indirectly related to the business in which the Company is now involved or becomes involved during the term of your employment.

As a Company employee, you will be expected to abide by the Company’s obligations, policies and procedures at all times. You will also be expected to sign and comply with a Confidential Information and Invention Assignment Agreement (the “CIIA”) that requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company (subject to California Labor Code Section 2870), non-solicitation of our employees, and non-disclosure of proprietary information.  Your employment will be subject to you having executed and returned the CIIA to the Company by December 10, 2016.

As provided in the Addendum hereto, in the event of any dispute or claim relating to or arising out of our employment relationship, you and the Company agree that all such disputes shall be fully and finally resolved by binding arbitration in Redwood City, California (or another mutually agreed upon location).  The Company agrees to pay the fees and costs of the arbitrator.   However, as also provided in the Addendum, we agree that this arbitration provision shall not apply to any disputes or claims relating to or arising out of the misuse or misappropriation of the other party’s intellectual property or proprietary information.

To indicate your acceptance of the Company’s offer, please sign and date this letter before December 31, 2016 5p.m. Pacific Time and return it to my attention by email to joshschechter@outlook.com with a copy to Michelle Johnson at michelle.johnson@support.com.

This letter, along with the addendum and attachment hereto,  and the CIIA, sets forth the terms of your employment with the Company (“Employment Agreement”) and supersedes any prior representations or agreements, whether written or oral.  This Employment Agreement may not be modified or amended except by a written agreement, approved by the Compensation Committee of the Board or its designee, and signed by a designated representative of the Company and you.

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 3

We are excited to have you join Support.com, and we look forward to working with you!

Sincerely,

/s/ Joshua Schechter

Joshua Schechter

Chairman of the Board of Directors

Support.com, Inc.

By signing, I hereby accept, acknowledge and agree to the terms and conditions as stated above in this Offer Letter including the attached Addendum incorporated herein by reference.

On this day of December 21, 2016

	 	
/s/ Rick Bloom

	 	
Rick Bloom

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 4

OFFER LETTER ADDENDUM

Severance Provisions; Agreement to Arbitrate

On behalf of Support.com, Inc., a Delaware Corporation (“the Company”), we are pleased to offer you this addendum (“Addendum”) to your employment Offer Letter with the Company (collectively the Offer Letter and this Addendum are referred to herein as the “Agreement”).

This offer is intended to comply with, or be exempt from,  the requirements of new Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”), as applicable, but the Company does not guarantee the tax treatment associated with the terms set forth in this offer and by signing this offer you acknowledge and agree that you had an opportunity to consult counsel of your choice.  The terms of this Addendum when accepted by all parties by signing below supplement the Offer Letter by adding the following provisions:

Severance

If your employment with the Company terminates as a result of an Involuntary Termination or for Cause, provided, in the case of termination for Cause that you acted in good faith and the best interest of the Company, and whether termination  is a result of Involuntary Termination or for Cause you execute and deliver to the Company the Company’s standard Release Agreement attached hereto as Attachment A (the “Release”) and that Release becomes effective and irrevocable within twenty-eight (28) days following your termination date in accordance with applicable law, then you will become entitled to receive the following benefit:

On the first payroll date following the twenty-eight (28) day period after the date of your Involuntary Termination or termination for Cause as described in the immediately preceding paragraph (subject to your timely execution and effectiveness of the Release), the Company shall pay to you a lump-sum payment equal to the sum of an amount equal to two hundred thousand dollars ($200,000), less applicable withholdings.

Agreement to Arbitrate

a.          Mutual agreement to arbitrate and waive rights to trial by judge or jury or by class action.  In the event of any future dispute, controversy or claim that either party may have against the other, including the Company’s parent, subsidiaries, or affiliates or any of their officers, directors, shareholders, representatives, attorneys, agents, or assigns in their capacity as such or otherwise, arising from or relating to this Agreement or the CIIA,  its breach, any matter addressed by this Agreement or the CIIA, and/or my employment with the Company through my separation date, the Company and I agree to resolve any such dispute (collectively, the “Claims”) by arbitration in accordance with this Agreement.  Notwithstanding the foregoing, the parties agree that this “Agreement to Arbitrate” in this Addendum shall not apply to any disputes or claims relating to or arising out of the misuse or misappropriation of the other party’s intellectual property or proprietary information. In the event of any conflict between this “Agreement to Arbitrate” on the one hand, and any conflicting terms in the Offer Letter or CIIA, this “Agreement to Arbitrate” provision shall govern and control.

The Claims covered by this Agreement include, without limitation, claims arising out of contract law, tort law, common law, wrongful discharge law, privacy rights, statutory protections, constitutional protections, wage and hour law, California Labor Code protections, the California Fair Employment and Housing Act (which includes claims for discrimination or harassment on the basis of age, race, color, ancestry, national origin, disability, medical condition, marital status, religious creed, sex, pregnancy, gender, and sexual orientation), any similar state discrimination law, the California Family Rights Act, the federal Family and Medical Leave Act, the federal Civil Rights Acts of 1964 and 1991, as amended, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, claims for benefits (except when a benefit or pension plan specifies that its claims procedures shall culminate in an arbitration procedure different from this one), and claims for violation of any federal, state, or other governmental law, statute, regulation, or ordinance.

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 5

I agree to have all Claims determined in arbitration as provided herein in an individual capacity and not as a class action.  Notwithstanding the foregoing,  I acknowledge that any Claims I may have for workers’ compensation, state unemployment compensation benefits and/or state disability insurance are not covered by this Agreement, as are any Claims that cannot, by applicable state and federal law, be submitted to arbitration.

I understand that, by this Agreement, the parties hereto are waiving their rights to have a Claim adjudicated by a court or jury, and to pursue a Claim as part of a class action.

b.          Arbitration in accordance with JAMS Rules.  Except as otherwise provided herein, arbitration shall be in accordance with the then-current JAMS Employment Arbitration Rules and Procedures before a single neutral arbitrator who is selected in accordance with the Rules. The arbitration shall take place in a mutually agreed location. The arbitrator shall apply the substantive law of California, or federal law, or both, as applicable to the Claim asserted.  Each party shall have the right to take written discovery and depositions as provided for under the California Code of Civil Procedure, as well as to subpoena witnesses and documents for discovery and for arbitration. Each party shall be entitled to all types of remedies and relief otherwise available in court.

The arbitrator shall have the exclusive authority to resolve any dispute relating to the formation, interpretation, applicability, or enforceability of this Agreement, including, without limitation, any Claim that all or any part of this Agreement is void or voidable. The arbitrator’s decision shall be a reasoned decision in writing, revealing the essential findings and conclusions forming the basis of the award, and shall be final and binding on the parties.

c.          Costs and Fees.  If I allege a Claim constituting a violation of a statute relating to employment, including, without limitation, the California Fair Employment and Housing Act (or similar state statute), the Civil Rights Acts of 1964 and 1991, the Age Discrimination in Employment Act, or the Americans with Disabilities Act, the Company will advance all costs of the arbitration that would not be incurred by the parties if the dispute were litigated in court, namely, the fees of the arbitrator and any arbitration association administrative fees and similar charges.

Except as set forth above, each party shall pay for its own costs, and attorney fees, if any. However, if any party prevails in a statutory Claim that affords the prevailing party attorney fees, the arbitrator may award reasonable attorney fees to the prevailing party in addition to any and all other remedies afforded by the relevant statute.

d.          Exclusive Forum.  Arbitration as described herein will be the exclusive forum for any Claims arising under the Employment Agreement.  The arbitration decision shall be final, conclusive and binding on both parties and any arbitration award or decision may be entered in any court having jurisdiction. The Parties agree that the prevailing party in any arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The parties further agree that the prevailing party in any such proceeding shall be awarded reasonable attorneys' fees and costs.

Definitions

For purposes of this Addendum, the following definitions shall be in effect:

“Involuntary Termination” means either: (a) that your employment is terminated by the Company without Cause or (b) that you resign for Good Reason (as defined below). You may terminate your employment hereunder for Good Reason upon satisfaction of the following requirements:  (A) notifying the Company within ninety (90) days after the occurrence of the act or omission constituting grounds for the Good Reason termination, (B) providing the Company at least thirty (30) days to correct such act or omission, and (C) upon the Company’s failure to take such corrective action within such thirty (30)-day period, giving the Company written notice of such Good Reason termination within five (5) business days thereafter, with such Good Reason termination to be effective immediately upon delivery of such notice to the Company.  In order to receive any benefits upon termination, (i) the Release must be signed by you (or your heirs in the case of your death) and must become effective/irrevocable within twenty-eight (28) days following your Involuntary Termination date in accordance with applicable law, and (ii) you must return all Company property.  An Involuntary Termination shall include a termination by reason of your death or Permanent Disability.

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 6

“Permanent Disability” means your inability to perform the essential functions of your position with or without reasonable accommodation for a period of one hundred twenty (120) consecutive days because of your physical or mental impairment.

“Cause” means a determination in the reasonable good faith of the Company that you have: (a) engaged in any act of fraud or embezzlement; (b) engaged in any act in violation of the law that causes or could be reasonably expected to cause material harm to the operations or reputation of the Company; (c) materially breached your fiduciary duty to the Company; (d) unreasonably refused to perform the reasonable, good faith and lawful written instructions of your supervisor(s); (e) engaged in willful misconduct or gross negligence which causes material harm to the Company; (f) willfully breached the Employment, Confidential Information and Invention Assignment Agreement which causes material harm to the Company; or (g) made any willful unauthorized use or disclosure of confidential information or trade secrets of the Company (or any parent or subsidiary) which causes material harm to the Company.

“Good Reason” means (a) your employment duties or responsibilities are materially diminished by the Company without your prior written consent; (b) a material change in the geographic location of your place of employment (currently to be Redwood City, California) without your approval, with a relocation of more than fifty (50) miles to be deemed material for purposes of this addendum; (c) a material uncured breach by the Company of its obligations under the terms of this Offer Letter; or (d) a material reduction in the annual rate of your base salary by the Company.

“Separation from Service” means your cessation of employee status and shall be deemed to occur at such time as the level of the bona fide services you are to perform in employee status (or as a consultant or other independent contractor) permanently decreases to a level that is not more than 20% of the average level of services you rendered in employee status during the immediately preceding thirty-six (36) months (or such shorter period for which you may have rendered such service).  Any such determination as to Separation from Service, however, shall be made in accordance with the applicable standards of the Treasury Regulations issued under Section 409A as determined by the Company.

Section 409A.

a.          The parties hereto intend that all benefits and payments to be made hereunder will be provided or paid in compliance with, or as exempt from, all applicable provisions of section 409A of the Code and the regulations issued thereunder, and the rulings, notices and other guidance issued by the Internal Revenue Service interpreting the same, and this Agreement shall be construed and administered in accordance with such intent.  The parties also agree that this Agreement may be modified, as reasonably requested by either party, to the extent necessary to comply with all applicable requirements of, and to avoid the imposition of any additional tax, interest and penalties under, the section 409A of the Code in connection with, the benefits and payments to be provided or paid hereunder. Any such modification shall maintain the original intent and benefit of the applicable provision of this Agreement, to the maximum extent possible without violating section 409A of the Code.

b.          In accordance with Section 1.409A-3(d) of the Treasury Regulations, a payment under this Agreement will be treated as made on the designated payment date if the payment is made (i) at such date or a later date within the same calendar year, or if later, by the 15th day of the third month following the date designated in this Agreement or (ii) at a date no earlier than 30 days before the designated payment date (provided that I may not, directly or indirectly, designate the year of payment).

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 7

c.          Notwithstanding any provision in this Agreement to the contrary, the following special provisions shall govern the payment date of my cash severance payment in the event that payment is deemed to constitute an item of deferred compensation under Section 409A:

(i) The severance payment will be paid to you on the first payroll date following the twenty-eight (28) day period after your Separation from Service (subject to your timely execution and effectiveness of this Release) and

(ii)  Notwithstanding clause (i) above, no payments or benefits to which I become entitled under this Agreement that constitute a deferral of compensation within the meaning of Code Section 409A shall be made or paid to me prior to the earlier of (i) the expiration of the six (6)-month period measured from my Separation Date or (ii) the date of  my death, if I am deemed at the time of such Separation from Service to be a "specified employee" within the meaning of that term under Code Section 409A and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Section 409A(a)(2).  Upon the expiration of the applicable deferral period, all payments deferred pursuant to this paragraph shall be paid to me in a lump sum on the next scheduled payroll date.

d.          With regard to reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year and (iii) such payments shall be made on or before the last day of Executive’s taxable year following the taxable year in which the expense occurred.  In addition, any gross-up payment shall be made by the end of the executive’s taxable year following the taxable year in which the related taxes are remitted to the taxing authorities.

Each payment under this Agreement is intended to be a “separate payment” and not one of a series of payments for purposes of Section 409A.

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 8

ATTACHMENT A

TO OFFER LETTER ADDENDUM

SUPPORT.COM RELEASE TERMS

General Release.  I, Rick Bloom, on behalf of myself, my heirs, representatives and assigns, I hereby fully and forever release and discharge Support.com, Inc. (the “Company”) as well as its past and present affiliates, subsidiaries, agents, related entities, officers, directors, shareholders, employees, attorneys, insurers, predecessors, successors, representatives, heirs and assigns (collectively, “Releasees”), from any and all claims, causes of action, suits, debts, and demands of any and every kind, nature and character, presently known and unknown, arising from or relating to any act or omission occurring prior to the date I sign this Agreement (collectively, “Claims”).

Examples of Claims.  The Claims I am releasing and discharging include, but are not limited to, Claims arising from and related to my recruitment, hiring, employment and termination of employment with the Company, including Claims under federal, state and local non-discrimination laws such as Title VII of the Civil Rights Act of 1964 as amended, the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Employee Retirement and Income Security Act of 1974 as amended (“ERISA”), the Americans with Disabilities Act, the Age Discrimination in Employment Act of 1967 as amended (“ADEA”), the Fair Employment and Housing Act and under any and all other applicable federal, state and local laws;  Claims for breach of express and implied contractual obligations, misrepresentation, infliction of emotional distress, violation of public policy, defamation, monetary damages and any other form of personal relief, attorneys’ fees and costs.

Known & Unknown Claims.  In furtherance of my intent to fully and forever release and discharge the Releasees from any and all Claims, “presently known and unknown,” I am waiving and releasing all rights and benefits afforded to me, if any, under Section 1542 of the California Civil Code, or under a comparable state law applicable to me.  I understand that California Civil Code Section 1542 provides as follows (parentheticals added):

A general release does not extend to claims which the creditor (e.g., me) does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor (e.g., the Company).

I understand that this means that, if I later discover facts different from or in addition to those that I now know or believe to be true, that my release and discharge of all Claims under this Agreement shall be and remain in full force and effect in all respects notwithstanding such different or additional facts or my later discovery of such facts.

Exclusions.  I understand that my release and discharge of all Claims under this Agreement excludes any claim(s) I may have for:

	·	
unemployment, disability and paid family leave insurance benefits, if any such benefit programs apply to me, pursuant to the terms of applicable state law;

	·	
workers’ compensation insurance benefits pursuant to Division 4 of the California Labor Code (or comparable law of another state applicable to me) under any worker’s compensation insurance policy or fund of the Company;

	·	
continued participation in the Company’s group health benefit plans pursuant to the terms and conditions of the federal law known as “COBRA;”

	·	
any benefit entitlement(s) vested as of my Separation Date, pursuant to written terms of any applicable employee benefit plan sponsored by the Company and governed by the federal law known as “ERISA”;

	·	
any stock and option shares vested as of my Separation Date, pursuant to the written terms and conditions of any stock and/or option grant by the Company to me existing before my Separation Date;

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 9

	·	
violation of any federal, state or local statutory and/or public policy right or entitlement that, by applicable law, is not waivable; and

	·	
any wrongful act or omission by any Releasee occurring after the date I sign this Agreement.

Confidentiality.   I agree that I will not disclose to others the fact or terms of this Agreement, except that I may disclose such information to my spouse, and to my attorneys and accountants in order for them to render professional services to me.

Continuing Rights and Obligations.

I acknowledge and affirm that I have ongoing obligations to the Company after my Separation Date, under the Confidential Information and Invention Assignment Agreement that I signed in connection with my employment with the Company and a copy of which is attached hereto as Attachment 1 (“CIIA”).

I understand that nothing in this Agreement prevents or prohibits me from (i) filing a claim with a government agency that is responsible for enforcing a law, (ii) providing information regarding my former employment relationship with the Company, as may be required by law or legal process, or (iii) cooperating, participating or assisting in any government or regulatory entity investigation or proceeding pertaining to the Company.

However, I also understand that, because the Claims I am releasing and discharging under this Agreement include all claims “for monetary damages and any other form of personal relief” (see the section entitled “Examples of Claims” above), I may only seek and receive non-personal forms of relief through any claim I may file with a government agency.

I also understand and agree that, even if required by subpoena to provide testimony, or otherwise to cooperate, participate or assist in any legal, government or regulatory proceeding that pertains to my former employment with the Company, I shall promptly give written notice to the Company’s Chairman of the Board (with attention to the Legal Department) that I have been requested or required to violate my CIIA in connection with or during such testimony, legal, government or regulatory proceeding, so that the Company may take legal action to protect its rights under my CIIA.

No Admission of Wrongdoing; No Disparagement.   I agree that neither the fact nor any aspect of this Agreement is intended, or should be construed at any time, to be an admission of liability or wrongdoing by either me or by any of the Releasees.  I further agree not to make, or encourage any other person to make, any negative or disparaging statements, as fact or as opinion, about any of the Releasees or their products, services, vendors, customers, or prospective customers, or any person acting by, through, under or in concert with any of them.

Agreement Deadline; Revocation Period; Effective Date.   I understand that:

I have been advised by the Company to consult with an attorney of my own choosing before signing this Agreement and returning it to the Company on or before the Agreement Deadline.

The last date I can sign this Agreement is twenty-one (21) days after my Separation Date (“Agreement Deadline”).

For seven (7) days after the date I actually sign this Agreement, I may revoke it (“Revocation Period”).  If I revoke this Agreement, I must deliver written notice of my revocation to the Company, no later than the seventh day after the date I signed this Agreement.

The “Effective Date” of this Agreement will be the date I have signed it, provided that I have returned to the Company my signature agreement to this Agreement and I have not timely revoked it during the Revocation Period.  I understand that this Agreement, as signed by me, and any notice of revocation, should be delivered by U.S. mail, hand or overnight delivery or facsimile to the number below

 

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063

Rick Bloom

Page 10

Human Resources & Legal Departments, Support.com

900 Chesapeake, Redwood City, California 94063

Confidential Facsimile No:  650-482-3761

Complete Agreement; Changes.   In signing this Release Agreement and it becoming effective, I represent and warrant that I am not relying on any statements, representations, negotiations, promises or agreements that are not expressly set forth in this Release Agreement.  I also understand and agree that:

	·	
this Agreement contains my entire understanding, and the entire agreement by me, with respect to the matters covered herein; and

	·	
this Agreement merges, cancels, supercedes and replaces all prior statements, representations, negotiations, promises or agreements relating to the subjects covered by this Agreement that may have been made by any of the Releasees, including (but not limited to) my offer letter from the Company, except (i) my CIIA which remains in full force and effect in accordance with its terms, (ii) the benefit plans and agreements referenced in Section 3.c.(4)-(5), above, and (iii) any debt obligation I owe to the Company; and

	·	
this Agreement cannot be changed except by another written agreement signed by me and approved by the Compensation Committee of the Board.

I HAVE READ THE FOREGOING RELEASE AGREEMENT.  I UNDERSTAND IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING THE RIGHT TO SUE FOR AGE DISCRIMINATION, HARASSMENT AND RETALIATION UNDER THE ADEA.  I AM AWARE OF MY RIGHT TO CONSULT WITH AN ATTORNEY OF MY OWN CHOOSING BEFORE SIGNING THIS RELEASE AGREEMENT, AND I HAVE BEEN ADVISED TO UNDERTAKE SUCH CONSULTATION.  I SIGN THIS RELEASE AGREEMENT FREELY AND VOLUNTARILY, WITHOUT COERCION OR DURESS.

EMPLOYEE

[TO BE SIGNED IN THE EVENT OF A TERMINATION WITH SEVERANCE]

	 	 	 	 
	 	 	 	 
	
Dated:

	 	 	 
	 	 	 	 
	
Name:

	 	 	 

Please return a signed copy to:

Human Resources & Legal Departments

Support.com, Inc.

900 Chesapeake, Redwood City, California 94063

Confidential Facsimile No:  650-482-3761

 

  

900 Chesapeake Drive, 2rd Floor • Redwood City, California 94063Exhibit 101 - December 22, 2016 8-K

		

			Exhibit 10.1

		

		
			THIRD AMENDMENT TO LOAN AGREEMENT AND OTHER LOAN DOCUMENTS
		

		
			This THIRD AMENDMENT TO LOAN AGREEMENT AND OTHER LOAN DOCUMENTS (this “Amendment”) is made and entered into as of December 21, 2016, by and among DEL FRISCO’S RESTAURANT GROUP, INC., a Delaware corporation (the “Borrower”), and JPMORGAN CHASE BANK, N.A., a national banking association (the “Lender”), and acknowledged and agreed to by each Guarantor.
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, the Lender and the Borrower previously entered into that certain Loan Agreement dated as of October 15, 2012 (as has been and may be amended, restated, supplemented, modified or replaced from time to time, the “Loan Agreement”) pursuant to which the Lender agreed to make certain Loans to the Borrower as described therein; 
		

		
			WHEREAS, in connection with the Loan Agreement, each Guarantor previously executed that certain Guaranty dated as of October 15, 2012 (as has been and may be amended, restated, supplemented, modified or replaced from time to time, the “Guaranty”) pursuant to which each Guarantor agreed to guarantee certain obligations of the Borrower as described therein; and
		

		
			WHEREAS, (a) the Borrower and the Lender now desire to amend certain terms of the Loan Agreement in the manner set forth herein, and (b) each Guarantor and the Lender now desire to amend certain terms of the Guaranty in the manner set forth herein, all to be effective as of the date hereof; and
		

		
			WHEREAS, the Borrower has formed one additional Material Subsidiary, Del Frisco’s of Texas, LLC (the “Additional Guarantor”) and pursuant to Section 6.13 of the Loan Agreement, the Additional Guarantor shall become a Guarantor by executing and delivering to the Lender a counterpart of the Guaranty, together with such other documents, instruments and agreements that Lender reasonably requests.
		

		
			NOW, THEREFORE, in consideration of the mutual covenants and the fulfillment of the conditions set forth herein, the parties hereby agree as follows:
		

			
	
			
				 1.
			Definitions.  Capitalized terms used herein but not otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement.

			
	
			
				 2.
			Amendments to the Loan Agreement.  Subject to the conditions hereof and upon satisfaction of the terms set forth in Section 6 herein, the Loan Agreement is hereby amended as follows:

			
	
			
				 (a)
			The following definitions set forth in Section 1.01 of the Loan Agreement are hereby amended and restated in their entirety to read as follows:

		
			“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period or for any CBFR Borrowing, an interest rate per annum 
		

		 

		

			Third Amendment to Loan Agreement - 1  -

		

		

			 

		

 

		(rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.
		

		
			“Adjusted One Month LIBOR Rate” means, for any day, an interest rate per annum equal to the sum of (i) 2.50% per annum plus (ii) the Adjusted LIBO Rate for a one-month interest period on such day (or if such day is not a Business Day, the immediately preceding Business Day); provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate at approximately 11:00 a.m. London time on such day.
		

		
			“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for general business in London.
		

		
			“CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate shall never be less than the Adjusted One Month LIBOR Rate on such day (or if such day is not a Business Day, the immediately preceding Business Day).  Any change in the CB Floating Rate due to a change in the Prime Rate or the Adjusted One Month LIBOR Rate shall be effective from and including the effective date of such change in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively.
		

		
			“Change in Law”  means the occurrence after the date of this Agreement of any of the following: (a) the adoption of or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) compliance by the Lender (or, for purposes of Section 2.06(b), by any lending office of the Lender or by the Lender’s holding company, if any) with any request, guideline, requirement or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the U.S. or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.
		

		
			“LIBO Rate”  means, with respect to any Eurodollar Borrowing for any applicable Interest Period or for any CBFR Borrowing, the LIBO Screen Rate at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period; provided that, if the LIBO Screen Rate shall not be available at such time for a period equal in length to such Interest 
		

		 

		

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		Period (an “Impacted Interest Period”), then the LIBO Rate shall be the Interpolated Rate at such time.  
		

		
			“Obligations” mean all present and future Indebtedness, obligations and liabilities of any Loan Party to Lender arising pursuant to the Loans, this Loan Agreement or any of the other Loan Documents, and any renewals, extensions, increases, or amendments thereof, or any part thereof, regardless of whether such Indebtedness, obligations and liabilities are direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several or joint and several and including interest and fees that accrue after the commencement by or against any Loan Party of any proceeding under any Applicable Bankruptcy Law naming any Loan Party as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding; provided,  however, that the definition of “Obligations” shall not create any guarantee by any Guarantor of (or grant of security interest by any Guarantor to support, as applicable) any Excluded Swap Obligations of such Guarantor for purposes of determining any obligations of any Guarantor.
		

		
			“Prime Rate” means the rate of interest per annum publicly announced from time to time by the Lender as its prime rate in effect at its principal offices in New York City. Each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.
		

		
			“Termination Date” means the earlier of (i) October 15, 2019 and (ii) such date that the Obligations are accelerated in accordance with the terms of this Loan Agreement.
		

			
	
			
				 (b)
			The following definitions are hereby added to Section 1.01 of the Loan Agreement, in proper alphabetical order thereto:

		
			“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or any of its Affiliates from time to time concerning or relating to bribery or corruption.
		

		
			“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
		

		
			“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
		

		
			“ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.
		

		
			“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such 
		

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  3  -

		

		

			 

		

 

		Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an ECP at the time the Guarantee of such Guarantor or the grant of such security interest becomes or would become effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.
		

		
			“Excluded Taxes” means any of the following Taxes imposed on or with respect to the Lender or required to be withheld or deducted from a payment to the Lender: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of the Lender being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of the Lender with respect to an applicable interest in a Loan, Letter of Credit or Revolving Credit Commitment pursuant to a law in effect on the date on which (i) the Lender acquires such interest in the Loan, Letter of Credit or Revolving Credit Commitment or (ii) the Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.09, amounts with respect to such Taxes were payable either to the Lender’s assignor immediately before the Lender acquired the applicable interest in such Loan, Letter of Credit or Revolving Credit Commitment or to the Lender immediately before it changed its lending office and (c)  any U.S. federal withholding Taxes imposed under FATCA.
		

		
			“FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code. 
		

		
			“Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”.  
		

		
			“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.
		

		
			“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Lender (which determination shall be conclusive and binding absent 
		

		 

		

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		manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the LIBO Screen Rate is available) that is shorter than the Impacted Interest Period and (b) the LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.    
		

		
			“LIBO Screen Rate” means, for any day and time, with respect to any Eurodollar Borrowing for any Interest Period or for any CBFR Borrowing, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for Dollars) for a period equal in length to such Interest Period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Lender in its reasonable discretion); provided that if the LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
		

		
			“Other Connection Taxes” means, with respect to the Lender, Taxes imposed as a result of a present or former connection between the Lender and the jurisdiction imposing such Taxes (other than a connection arising from the Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to,  or enforced, any Loan Document), or sold or assigned an interest in any Loan, Letter of Credit, or any Loan Document. 
		

		
			“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment.
		

		
			“Sanctioned Country” means, at any time, a country, region or territory which is the subject or target of any Sanctions ( at the time of this Agreement, Crimea, Cuba, Iran, North Korea, Sudan and Syria).
		

		
			“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or by the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).
		

		
			“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any European Union member state or Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority.
		

		

		

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  5  -

		

		

			 

		

 

		“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder.
		

		
			“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), value added taxes, or any other goods and services, use or sales taxes, assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
		

		
			“Third Amendment Effective Date” means the effective date of that certain Third Amendment to Loan Agreement and other Loan Documents, by and among Borrower and Lender, and acknowledged and agreed to by each Guarantor.
		

			
	
			
				 (c)
			The definition of “Reserve Requirement” set forth in Section 1.01 of the Loan Agreement is hereby deleted.

			
	
			
				 (d)
			The proviso to the first sentence of Section 2.01(a) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

		
			“provided, however, the total principal amount outstanding at any time will not exceed $10,000,000.00 (as such amount may be increased from time to time pursuant to Section 2.01(d),  the “Revolving Credit Commitment”) minus the Letter of Credit Liabilities.”
		

			
	
			
				 (e)
			Section 2.01(d)(i) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

		
			(i)Provided there exists no Default or Event of Default, upon notice to Lender, Borrower may, at any time after the Third Amendment Effective Date, request an increase in the Revolving Credit Commitment by an amount (for all such requests) not exceeding $20,000,000.00; provided that (i) any such request for an increase shall be in a minimum amount of $5,000,000.00 or a whole multiple of $5,000,000.00 in excess thereof, (ii) Borrower may make a maximum of four such requests, and (iii) each such notice must be received by Lender not less than ten Business Days prior to the proposed effective date of such increase.
		

			
	
			
				 (f)
			Section 2.04(c) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

		
			(c)Notwithstanding the foregoing, if an Event of Default has occurred and is continuing, the Loans and Obligations shall, to the extent permitted by applicable Law, bear interest, after as well as before judgment, at a rate per annum equal to the lesser of (i) the Highest Lawful Rate and (ii) 2.00% plus the  rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section.
		

		 

		

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				 (g)
			Section 2.06 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

		
			Section 2.06Increased Costs.  (a) If any Change in Law shall:
		

		
			(i)  impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, the Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or
		

		
			(ii)  impose on the Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by the Lender or any Letter of Credit; or
		

		
			(iii)  subject the Lender to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;
		

		
			and the result of any of the foregoing shall be to increase the cost to the Lender of making, continuing, converting into or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to the Lender of issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by the Lender hereunder (whether of principal, interest or otherwise), then the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered.
		

		
			﻿
		

		
			(b)  If the Lender determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on the Lender’s capital or on the capital of the Lender’s holding company as a consequence of this Agreement, the Commitment of or the Loans made by Letters of Credit issued by the Lender to a level below that which the Lender or the Lender’s holding company could have achieved but for such Change in Law (taking into consideration the Lender’s policies and the policies of the Lender’s holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender or the Lender’s holding company for any such reduction suffered.
		

		
			﻿
		

		
			(c)  A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay 
		

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  7  -

		

		

			 

		

 

		the Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.  
		

		
			﻿
		

		
			(d)  Failure or delay on the part of the Lender to demand compensation pursuant to this Section shall not constitute a waiver of the Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate the Lender pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of the Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.
		

			
	
			
				 (h)
			A new Section 2.08 is hereby added to the Loan Agreement, immediately following Section 2.07 thereof, to read in its entirety as follows:

		
			2.08Indemnity for Returned Payments.  If after receipt of any payment which is applied to the payment of all or any part of the Obligations (including a payment effected through exercise of a right of setoff), the Lender is for any reason compelled to surrender such payment or proceeds to any Person because such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason (including pursuant to any settlement entered into by the Lender in its discretion), then the Obligations or part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Lender.  The provisions of this Section 2.08 shall be and remain effective notwithstanding any contrary action which may have been taken by the Lender in reliance upon such payment or application of proceeds.  The provisions of this Section 2.08 shall survive the termination of this Agreement.
		

			
	
			
				 (i)
			A new Section 2.09 is hereby added to the Loan Agreement, immediately following Section 2.08 thereof, to read in its entirety as follows:

		
			2.09Taxes.  
		

		
			(a)  Withholding Taxes; Gross-Up; Payments Free of Taxes.    Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party 
		

		 

		

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		shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.09), the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.
		

		
			(b)  Payment of Other Taxes by Loan Parties.  The Loan Parties shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Lender, timely reimburse it for, Other Taxes.
		

		
			(c)  Evidence of Payment.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.09,  such Loan Party shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment, or other evidence of such payment reasonably satisfactory to the Lender.
		

		
			(d)  Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify the Lender, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by the Lender or required to be withheld or deducted from a payment to the Lender and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Loan Party by the Lender shall be conclusive absent manifest error.
		

		
			(e)  Treatment of Certain Refunds.  If the Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.09 (including by the payment of additional amounts pursuant to this Section 2.09), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.09 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of the Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of the Lender, shall repay to the Lender the amount paid to the Lender (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event the Lender is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (e), in no event will the Lender be required to pay any amount to any indemnifying party pursuant to this paragraph (e), the payment of which would place the Lender in a less favorable net after-Tax position than the Lender would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid.  This paragraph (e) shall not be construed to require the Lender to make available 
		

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  9  -

		

		

			 

		

 

		its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
		

		
			(f)  Survival.  Each party’s obligations under this Section 2.09 shall survive any assignment of rights by the Lender, the termination of the Revolving Credit Commitment and the repayment, satisfaction or discharge of all obligations under any Loan Document.
		

		
			(g)  Defined Terms.  For purposes of this Section 2.09, the term “applicable law” includes FATCA.
		

			
	
			
				 (j)
			Section 3.01 of the Loan Agreement is hereby amended by adding the following sentence to the end thereof:

		
			“Notwithstanding anything herein to the contrary, the Lender shall have no obligation hereunder to issue, and shall not issue, any Letter of Credit (i) the proceeds of which would be made available to any Person (A) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at the time of such funding, is the subject of any Sanctions or (B) in any manner that would result in a violation of any Sanctions by any party to this Agreement, (ii) if any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Lender from issuing such Letter of Credit, or any Governmental Requirement relating to the Lender or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Lender shall prohibit, or request that the Lender refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Lender with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Lender is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the Lender any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Lender in good faith deems material to it, or (iii) if the issuance of such Letter of Credit would violate one or more policies of the Lender applicable to letters of credit generally; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed not to be in effect on the Closing Date for purposes of clause (ii) above, regardless of the date enacted, adopted, issued or implemented.”
		

			
	
			
				 (k)
			A new Section 5.18 is hereby added to the Loan Agreement, immediately following Section 5.17 thereof, to read in its entirety as follows:

		

		

		 

		

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		5.18Anti-Corruption Laws and Sanctions.  Each Loan Party has implemented and maintains in effect policies and procedures designed to ensure compliance by such Loan Party, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and such Loan Party, its Subsidiaries and their respective officers and employees and to the knowledge of such Loan Party its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in any Loan Party being designated as a Sanctioned Person.  None of (a) any Loan Party, any Subsidiary or, to the knowledge of any such Loan Party or Subsidiary, any of their respective directors, officers or employees, or (b) to the knowledge of any such Loan Party or Subsidiary, any agent of such Loan Party or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.     No Borrowing or Letter of Credit, use of proceeds, or other transaction contemplated by this Agreement or the other Loan Documents will violate Anti-Corruption Laws or applicable Sanctions.
		

			
	
			
				 (l)
			Section 6.09 of the Loan Agreement is hereby amended to add the following sentence to the end thereof:

		
			“Each Loan Party will maintain in effect and enforce policies and procedures designed to ensure compliance by such Loan Party, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.”
		

			
	
			
				 (m)
			Section 7.09 of the Loan Agreement is hereby to add the following sentence to the end thereof:

		
			“The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the United States or the European Union, or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto.”
		

			
	
			
				 (n)
			Section 7.08(b) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

		
			(b)so long as no Default shall have occurred and be continuing or shall be caused thereby, Borrower may repurchase capital stock of Borrower from 
		

		 

		

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		(i) officers, directors and employees of Borrower or any Subsidiary in an aggregate amount not to exceed (A) $2,000,000 in any fiscal year or (B) $5,000,000 during the term of this Loan Agreement and (ii) public investors through block or open market trades in an aggregate amount not to exceed $50,000,000 during the term of this Loan Agreement.
		

			
	
			
				 (o)
			Section 8.03 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

		
			8.03Capital Expenditures.  Capital Expenditures to exceed (a) $35,500,000 in fiscal year 2012 in the aggregate, (b) $40,000,000 in fiscal year 2013 in the aggregate, (c) $50,000,000 in fiscal year 2014 in the aggregate, (d) $50,000,000 in fiscal year 2015 in the aggregate, and (e) $60,000,000 in fiscal year 2016 and in each fiscal year thereafter, in the aggregate for any such fiscal year; provided, Capital Expenditures for any single fiscal year may exceed the limit stated for such year so long as the aggregate Capital Expenditures in excess of such limits in all fiscal years during the term of this Loan Agreement do not exceed $15,000,000.
		

			
	
			
				 (p)
			Section 9.01(a) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

		
			(a)The failure, refusal or neglect of Borrower to pay when due any part of the principal of, or interest on, the Notes or any other Obligations by Borrower from time to time, and with respect to interest payments, such failure shall continue unremedied for a period of five (5) days.
		

			
	
			
				 (q)
			Section 9.01(i) of the Loan Agreement is hereby deleted and replaced with: “Intentionally omitted.”

			
	
			
				 (r)
			Section 10.04 of the Loan Agreement is hereby amended by adding the following sentence to the end thereof:

		
			“The provisions of Sections 2.06,  2.07,  2.09, 10.13 and 10.14 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Revolving Credit Commitment or the termination of this Agreement or any other Loan Document or any provision hereof or thereof.”
		

			
	
			
				 (s)
			The Borrower’s address for notices delivered pursuant to the Loan Agreement and the other Loan Documents is hereby amended to the following:

		
			920 South Kimball Avenue
		

		
			Suite 100
		

		
			Southlake, Texas 76092
		

		
			Attention: Chief Financial Officer

		

			
	
			
				 3.
			Amendments to the Guaranty.  

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  12  -

		

		

			 

		

 

			
	
			
				 (a)
			Section 2 of the Guaranty is hereby amended by adding the following sentence to the end thereof:

		
			“Notwithstanding anything herein to the contrary, the definition of “Guaranteed Obligations” shall not create any guarantee by any Guarantor of (or grant of security interest by any Guarantor to support, as applicable) any Excluded Swap Obligations of such Guarantor for purposes of determining any obligations of any Guarantor).”
		

			
	
			
				 (b)
			A new Section 24 is hereby added to the Guaranty, immediately following Section 23 thereof, to read in its entirety as follows:

		
			SECTION 24Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honor all of its obligations under this Guaranty in respect of a  Swap Obligation (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 24 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 24 or otherwise under this Guaranty voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  Except as otherwise provided herein, the obligations of each Qualified ECP Guarantor under this Section 24 shall remain in full force and effect until the termination of all Swap Obligations.  Each Qualified ECP Guarantor intends that this Section 24 constitute, and this Section 24 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.  As used in this Section 24, “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guaranty or grant of the relevant security interest becomes or would become effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
		

			
	
			
				 (c)
			Each Guarantor hereby consents, acknowledges and agrees to the amendments set forth in this Amendment and hereby confirms, reaffirms and ratifies in all respects the Guaranty to which it is a party, as amended hereby (including without limitation the continuation of such Guarantor’s payment and performance obligations thereunder upon and after the effectiveness of this Amendment) and the enforceability of such Guaranty against such Guarantor in accordance with its terms.

			
	
			
				 4.
			Full Force and Effect of Agreement.  Except as hereby specifically amended, modified or supplemented, the Borrower hereby acknowledges and agrees that the Loan Agreement and all of the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect according to their respective terms.

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  13  -

		

		

			 

		

 

			
	
			
				 5.
			Representations and Warranties.  Each Loan Party hereby represents and warrants to the Lender that after giving effect to this Amendment:

			
	
			
				 (a)
			The representations and warranties of the Borrower and each other Loan Party contained in Article V of the Loan Agreement or in any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date;  

			
	
			
				 (b)
			This Amendment has been duly authorized, executed and delivered by the Borrower and each Guarantor and constitutes a legal, valid and binding obligation of such parties,  enforceable against such parties in accordance with its terms; and

			
	
			
				 (c)
			No Default or Event of Default under the Loan Agreement or under any other Loan Document exists.

			
	
			
				 6.
			Conditions to Effectiveness.  This Amendment shall not be effective until the following conditions precedent have been satisfied:

			
	
			
				 (a)
			the Lender shall have received, in form and substance satisfactory to the Lender, each of the following:

			
	
			
				 (i)
			counterparts of this Amendment executed by the Borrower, the Lender and each Guarantor; 

			
	
			
				 (ii)
			an amended and restated Note executed by the Borrower (the “Amended and Restated Note”);

			
	
			
				 (iii)
			a counterpart of a supplement to the Guaranty executed by the Additional Guarantor (the “Guaranty Supplement”);

			
	
			
				 (iv)
			a certificate, in form and substance reasonably acceptable to the Lender, of the Borrower executed by a Managerial Official of the Borrower certifying (A) as to the names and titles of the officers of the Borrower authorized to sign this Amendment, the Amended and Restated Note, and each of the other Loan Documents to be executed by the Borrower in connection herewith (including the certificates contemplated herein), together with specimen signatures of such officers; (B) as to resolutions of the board of directors of the Borrower, which resolutions authorize the execution, delivery, and performance by the Borrower of this Amendment, the Amended and Restated Note, and each of the other Loan Documents to be executed by the Borrower in connection herewith; (C) original certified or file–stamped copies of the certificate of formation, articles of organization, or other similar organizational document of the Borrower, certified as true, correct and complete by the appropriate authority in its jurisdiction of organization as of a date acceptable to the Lender; (D) a true, correct, and complete copy of the operating agreement or other similar organizational document of the Borrower; and (E) certificates of the appropriate 
		

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  14  -

		

		

			 

		

 

			government officials as to the existence and good standing of the Borrower in (i) its jurisdiction of organization and (ii) each other jurisdiction in which the Borrower is required to qualify to do business, each dated a date acceptable to the Lender; 

			
	
			
				 (v)
			a certificate, in form and substance reasonably acceptable to the Lender, of the Additional Guarantor executed by a Managerial Official of the Additional Guarantor certifying as to (A) the names and titles of the officers of the Additional Guarantor authorized to sign the Guaranty Supplement and each of the other Loan Documents to be executed by the Additional Guarantor in connection herewith (including the certificates contemplated herein), together with specimen signatures of such officers; (B) resolutions of the members, managers or other appropriate governing body of the Additional Guarantor, which resolutions authorize the execution, delivery, and performance by the Additional Guarantor of the Guaranty Supplement and each of the other Loan Documents to be executed by the Additional Guarantor in connection herewith; (C) original certified or file–stamped copies of the certificate of formation, articles of organization, or other similar organizational document of the Additional Guarantor, certified as true, correct and complete by the appropriate authority in its jurisdiction of organization as of a date acceptable to the Lender; (D) a true, correct, and complete copy of the operating agreement or other similar organizational document of the Additional Guarantor; and (E) certificates of the appropriate government officials as to the existence and good standing of the Additional Guarantor in (i) its jurisdiction of organization and (ii) each other jurisdiction in which the Additional Guarantor is required to qualify to do business, each dated a date acceptable to the Lender;

			
	
			
				 (vi)
			such other documents, instruments and certificates as reasonably requested by the Lender;

			
	
			
				 (b)
			the Lender shall have received payment or evidence of payment of all fees and expenses owed by the Borrower to the Lender including, without limitation, the reasonable fees and expenses of Winstead PC, counsel to the Lender;

			
	
			
				 (c)
			the Lender shall have received evidence, in form and substance reasonably satisfactory to the Lender, that all actions required to be taken by the Borrower and each other Loan Party in connection with the transactions contemplated by this Amendment have been taken;

			
	
			
				 (d)
			the representations and warranties contained in the Loan Agreement and in each other Loan Document shall be true and correct as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date; and

			
	
			
				 (e)
			no Default or Event of Default under the Loan Agreement or under any other Loan Document exists.

		

		

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  15  -

		

		

			 

		

 

		Upon the satisfaction of the conditions set forth in this Section 6, this Amendment shall be effective as of the date hereof.
		

			
	
			
				 7.
			Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original (including electronic copies) but all of which together shall constitute one and the same instrument.

			
	
			
				 8.
			Governing Law.  This Amendment shall in all respects be governed by, and construed in accordance with, the laws of the State of Texas.

			
	
			
				 9.
			Enforceability.  Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.

			
	
			
				 10.
			No Novation.  This Amendment is given as an amendment and modification of, and not as a payment of, the obligations of the Borrower and the Guarantors under the Loan Agreement and each other Loan Document and is not intended to constitute a novation of the Loan Agreement or any other Loan Document.  All of the indebtedness, liabilities and obligations owing by the Borrower and the Guarantors under the Loan Agreement and the other Loan Documents shall continue.

			
	
			
				 11.
			Expenses.  The Borrower agrees to pay all reasonable out of pocket costs and expenses (including without limitation reasonable fees and expenses of any counsel, financial advisor, and agent for the Lender) incurred before or after the date hereof by the Lender and its affiliates in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and the other Loan Documents.

			
	
			
				 12.
			Entire Agreement.  THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

		
			[Remainder of page intentionally left blank.  Signature page follows.]
		

		

		

		 

		

			Third Amendment to Loan Agreement and other Loan Documents -  16  -

		

		

			 

		

 

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

		
			BORROWER:

DEL FRISCO’S RESTAURANT GROUP, INC.

By: /s/ Thomas J. Pennison, Jr.
		

		
			       Thomas J. Pennison, Jr.
       Treasurer
		

		
			﻿
		

		
			LENDER:

JPMORGAN CHASE BANK, N.A.

By: /s/  Doug K. Eller
       Douglas K. Eller
       Banker Senior
		

		
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			Third Amendment to Loan Agreement and other Loan Documents – Signature Page 

		

		

			 

		

 

		REAFFIRMATION OF GUARANTY
		

		
			By signing below, each Guarantor (including the Additional Guarantor) (a) acknowledges, consents and agrees to the execution, delivery and performance by the Borrower of this Amendment, (b) acknowledges, consents and agrees to the amendments to its respective guaranty set forth in Section 3 of this Amendment,  (c) acknowledges and agrees that its obligations in respect of its respective guaranty, as amended hereby, are not released, diminished, waived, modified, impaired or affected in any manner by this Amendment or any of the provisions contemplated herein, (d) ratifies and confirms its obligations under its respective guaranty, as amended hereby, and (e) acknowledges and agrees that it has no claims or offsets against, or defenses or counterclaims to, its respective guaranty, as amended hereby.
		

		
			﻿
		

			
					
						CENTER CUT HOSPITALITY, INC.
LONE STAR FINANCE, LLC
SULLIVAN’S OF ALASKA, INC.
SULLIVAN’S OF ARIZONA, INC.
CALIFORNIA SULLIVAN’S, INC.
DEL FRISCO’S OF COLORADO, INC.
DEL FRISCO’S GRILLE OF TEXAS, LLC
SULLIVAN’S OF ILLINOIS, INC.
SULLIVAN’S OF INDIANA, INC.
SULLIVAN’S OF KANSAS, INC.
LOUISIANA STEAKHOUSE, INC.
SULLIVAN’S OF BALTIMORE, INC.
DEL FRISCO’S OF BOSTON, LLC
SULLIVAN’S RESTAURANTS OF NEBRASKA, INC.
DEL FRISCO’S OF NEVADA, INC.
DEL FRISCO’S OF NEW YORK, LLC
DEL FRISCO’S GRILLE OF NEW YORK, LLC
SULLIVAN’S OF NORTH CAROLINA, INC.
NORTH PHILADELPHIA SULLIVAN’S, INC.
DEL FRISCO’S OF PHILADELPHIA, INC.
DEL FRISCO’S OF WASHINGTON DC, LLC

					
						DEL FRISCO’S OF FLORIDA, LLC
ROMO HOLDING, LLC
DEL FRISCO’S OF TEXAS, LLC

					
						
By:
/s/ Thomas J. Pennison, Jr.
      Thomas J. Pennison, Jr.
      Treasurer

					
					
						SULLIVAN’S – AUSTIN, L.P.
DEL FRISCO -- DALLAS, L.P.
DEL FRISCO – FORT WORTH, L.P.

By:  ROMO HOLDING, LLC, 

					
						        its sole general partner

					
						 

					
						        By:  /s/ Thomas J. Pennison, Jr.
    Thomas J. Pennison, Jr.
    Treasurer
      

				

		
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			Third Amendment to Loan Agreement and other Loan Documents – Signature Page

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