Document:

2015 Q2 10-Q EX 10.2

Exhibit 10.2
PERFORMANCE AWARD AGREEMENT
HERCULES OFFSHORE, INC. 
2014 LONG-TERM INCENTIVE PLAN
This Performance Award Agreement (this “Agreement”) is made and entered into by and between Hercules Offshore, Inc., a Delaware corporation (the “Company”), and [•] (the “Participant”) as of [•], 2015 (the “Date of Grant”).
W I T N E S S E T H
WHEREAS, the Company has adopted the Hercules Offshore, Inc. 2014 Long-Term Incentive Plan (the “Plan”); and
WHEREAS, the Compensation Committee of the Board of Directors of the Company has determined that it is in the best interests of the Company and its shareholders to grant a Performance Award to the Participant pursuant to the Plan and the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and conditions hereafter set forth and for other good and valuable consideration, the Company and the Participant agree as follows:
1.Grant of Performance Award. The Company hereby grants to the Participant, as of the Date of Grant, a Performance Award with a target value equal to $[•], subject to the conditions and restrictions set forth herein and in the Plan (the “Performance Award”).  The Participant hereby acknowledges receipt of a copy of the Plan, and agrees that the Performance Award granted hereunder shall be subject to all of the terms and provisions of the Plan.  In the event of any conflict between (i) the terms of this Agreement (including Exhibit A) and the Plan, the Plan shall control and (ii) the terms of this Agreement (including Exhibit A) and any written employment agreement between the Participant and the Company, such employment agreement shall control.  Capitalized terms used in this Agreement that are not defined herein (or in Exhibit A) shall have the meanings given to them in the Plan.
2.Earning of Performance Award.  
(a)Subject to the provisions of Section 4, with respect to each Performance Period, the portion of the Performance Award that shall become earned on the Performance Certification Date with respect to such Performance Period shall be determined as follows:
(i)If the  sum of (x) the Downtime Performance Earned Percentage for such Performance Period and (y) the SPP Performance Earned Percentage for such Performance Period (such sum, the “Total Earned Percentage”) is greater than or equal to 60%, then the amount of the Performance Award that shall become earned on the Performance Certification Date for such Performance Period shall be equal to the product of (x) the Cash Earned Percentage for such Performance Period (determined in accordance with the Earned Amount Chart) and (y) the target value of the Performance Award (such product, the “Earned Cash Amount”).
(ii)If the Total Earned Percentage for such Performance Period is less than 60%, then none of the Performance Award shall become earned on the Performance Certification Date for such Performance Period.

(b)Subject to Section 4, any portion of the Performance Award that  becomes earned in accordance with Section 2(a) or Section 4 shall be settled in accordance with Section 3.  Any portion of any Performance Award that does not become earned in accordance with Section 2(a) or Section 4 during a Performance Period shall be forfeited on the Performance Certification Date for such Performance Period.
(c)Without limiting the foregoing and unless the Performance Award has been forfeited earlier, the Committee shall certify in writing as promptly as practicable after the close of each Performance Period, whether, and the extent to which, the applicable requirements of Section 2(a) have been satisfied and the amount of the Performance Award, if any, that becomes earned with respect to such Performance Period.
3.Payment.  Within 30 days following the Performance Certification Date for the final Performance Period, so long as the Participant remains continuously employed by the Company or one of its Subsidiaries through the applicable payment date, the Company shall, with respect to any portion of the Performance Award  that has become earned hereunder, pay to the Participant an amount of cash equal to the Earned Cash Amount, as applicable, less applicable tax withholding pursuant to Section 7.
4.Effect of Termination of Employment.  Except as otherwise provided in any written employment agreement between the Participant and the Company in effect from time to time:
(a)If the Participant incurs a Termination of Employment prior to the payment of the Performance Award, then the Performance Award shall be immediately forfeited by the Participant as of the date of such Termination of Employment and the Company shall have no further obligations hereunder.
(b)Notwithstanding any provision of Section 3 or any of the preceding provisions of this Section 4 to the contrary, the Performance Award shall be treated as follows upon the occurrence of a Change in Control, provided that the Participant is employed by the Company or one of its Subsidiaries upon the consummation of such Change in Control:
(i)If such Change in Control occurs on or after the last day of a Performance Period (determined without regard to Section 4(b)(ii)) and before the Performance Certification Date for such Performance Period, all future Performance Certification Dates shall be deemed to be changed to the date of such Change in Control.
(ii)If such Change in Control occurs before the last day of a Performance Period (determined without regard to this Section 4(b)(ii)):
(A)All Performance Periods that have not ended as of the date of such Change in Control shall be deemed to end on the date of such Change in Control; and
(B)All future Performance Certification Dates shall be deemed to be changed to the date of such Change in Control.
5.Limitation of Rights.  Nothing in this Agreement or the Plan shall be construed to (a) give the Participant any right to be awarded any further cash award or any other Award in the future, even if cash awards or other Awards are granted on a regular or repeated basis, as grants of cash awards and other Awards are completely voluntary and made solely in the discretion of the Committee; (b) give the Participant or any other Person any interest in any fund or in any specified asset or assets of the Company or any Subsidiary; or (c) confer upon the Participant the right to continue in the employment of the Company or any Subsidiary, or affect the right of the Company or any Subsidiary to terminate the employment of the Participant at any time or for any reason.  Neither the Participant, nor any Person claiming through the Participant, shall have 

any right or interest in the Performance Award granted hereunder, unless and until all the terms, conditions and provisions of this Agreement and the Plan that affect the Participant or such other Person shall have been complied with as specified herein.
6.Successors and Assigns.  This Agreement shall bind and inure to the benefit of and be enforceable by the Participant, the Company and their respective permitted successors and assigns (including personal representatives, heirs and legatees), except that the Participant may not assign any rights or obligations under this Agreement except to the extent and in the manner expressly permitted herein.
7.Tax Withholding.  All amounts payable to the Participant hereunder shall be reduced by the amount the Company is required to withhold under the applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”), or its successors, or any other federal, state, local or other tax withholding requirement.  When the Company is required to withhold any amount or amounts under the applicable provisions of the Code, the Company shall withhold from each payment of the Performance Award to be paid to the Participant an amount of cash necessary to satisfy the Company’s minimum withholding obligations.  The Participant acknowledges and agrees that none of the Board, the Committee, the Company or any of its Affiliates have made any representation or warranty as to the tax consequences to the Participant as a result of the receipt of the Performance Award.  The Participant represents that he is in no manner relying on the Board, the Committee, the Company or any of its Affiliates or any of their respective managers, directors, officers, employees or authorized representatives (including, without limitation, attorneys, accountants, consultants, bankers, lenders, prospective lenders and financial representatives) for tax advice or an assessment of such tax consequences.  The Participant represents that he has consulted with any tax consultants that the Participant deems advisable in connection with the grant of the Performance Award.
8.Entire Agreement; Amendment.  This Agreement and any written employment agreement between the Participant and the Company in effect from time to time constitute the entire agreement of the parties with regard to the subject matter hereof, and contain all the covenants, promises, representations, warranties and agreements between the parties with respect to the Performance Award granted hereunder.  Without limiting the scope of the preceding sentence, except as provided in this Agreement and any written employment agreement between the Participant and the Company in effect from time to time, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.  The Committee may, in its sole discretion, amend this Agreement from time to time in any manner that is not inconsistent with the Plan; provided, however, that except as otherwise provided in the Plan or this Agreement, any such amendment that materially reduces the rights of the Participant shall be effective only if it is in writing and signed by both the Participant and an authorized officer of the Company.
9.Governing Law.  This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Delaware, without regard to conflicts of law principles thereof. 
10.Headings; References; Interpretation.  All Section headings in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any of the provisions hereof.  The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, including all Exhibits attached hereto, and not to any particular provision of this Agreement.  All references herein to Sections and Exhibits shall, unless the context requires a different construction, be deemed to be references to the Sections of this Agreement and the Exhibits attached hereto, and all such Exhibits attached hereto are hereby incorporated herein and made a part hereof for all purposes.  The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters 

set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. The word “or” as used herein is not exclusive and shall be deemed to have the meaning “and/or”.  Unless the context requires otherwise, all references herein to an agreement, instrument or other document shall be deemed to refer to such agreement, instrument or other document as amended, supplemented, modified and restated from time to time to the extent permitted by the provisions thereof.  Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of construction or otherwise.  On the contrary, this Agreement has been reviewed by each of the parties hereto and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the parties hereto.
11.Section 409A.  Notwithstanding any provision of this Agreement to the contrary, all payments under this Agreement are intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the applicable Treasury regulations and administrative guidance issued thereunder and this Agreement shall be construed and administered in accordance with such intent.
[Remainder of Page Intentionally Blank;
Signature Page Follows]

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by one of its officers thereunto duly authorized and the Participant, effective for all purposes as provided above.
    
HERCULES OFFSHORE, INC.
    
    
By: _________________________________
John T. Rynd
Chief Executive Officer and President

    
PARTICIPANT

____________________________________
[Name of Participant]
    
    

EXHIBIT A

As used in this Agreement, the following terms shall have the meanings set forth below: 
		
	(a)
	“Cash Earned Percentage” means, with respect to a Performance Period, the percentage under the heading “Cash Earned Percentage” that corresponds to the Total Earned Percentage for such Performance Period in the Earned Amount Chart.

		
	(b)
	“Company SPP Rank” means the Company SPP Rank on the Peer Group SPP Chart.

		
	(c)
	“Downtime Performance Earned Percentage” means the percentage in the column entitled “Downtime Performance Percentage” that corresponds to the Downtime Performance Percentage Rank on the Downtime Performance Percentage Chart.

		
	(d)
	“Downtime Performance Percentage” or “DPP” means, with respect to a Performance Period, the average of the annual downtimes of the Company’s rigs and liftboats expressed as a percentage and determined in accordance with the Company’s prescribed practices and policies as interpreted and applied by the Committee, for each calendar year during such Performance Period. 

		
	(e)
	“Downtime Performance Percentage Chart” means the following chart:

	
		
	Downtime Performance Percentage 
	Downtime Performance Earned Percentage

	DPP ≤ 1.35% 
	100%

	1.35% < DPP ≤ 1.37% 
	100%

	1.37% < DPP ≤ 1.39%
	100%

	1.39% < DPP ≤ 1.41%
	90%

	1.41% < DPP ≤ 1.43%
	80%

	1.43% < DPP ≤ 1.45%
	70%

	1.45% < DPP ≤ 1.47%
	60%

	1.47% < DPP ≤ 1.50%
	50%

	1.50% < DPP ≤ 1.53%
	40%

	1.53% < DPP ≤ 1.57%
	30%

	1.57% < DPP ≤ 1.61%
	20%

	1.61% < DPP ≤ 1.65%
	10%

		
	(f)
	“Earned Amount Chart” means the following chart:

	
				
	Total Earned Percentage
	Cash Earned Percentage

	1/1/2015-12/31/2015
	1/1/2015-12/31/2016
	1/1/2015-12/31/2017

	200%
	40%
	60%
	100%

	190%
	38%
	57%
	95%

	180%
	36%
	54%
	90%

	170%
	34%
	51%
	85%

	160%
	32%
	48%
	80%

	150%
	30%
	45%
	75%

	140%
	28%
	42%
	70%

	130%
	26%
	39%
	65%

	120%
	24%
	36%
	60%

	110%
	22%
	33%
	55%

	100%
	20%
	30%
	50%

	90%
	18%
	27%
	45%

	80%
	16%
	24%
	40%

	70%
	14%
	21%
	35%

	60%
	12%
	18%
	30%

	Less than 60%
	0%
	0%
	0%

		
	(g)
	“Ending Share Price” means, with respect to a Performance Period, the average closing price of one share of common stock of the relevant Peer Group member over the 90-day period ending on the last day of such Performance Period.

		
	(h)
	“Peer Group” means the Company, Atwood Oceanics, Inc., Basic Energy Services, Inc., Dresser-Rand Group, Inc., Gulfmark Offshore, Inc., Helmerich & Payne Inc., Hornbeck Offshore Services, Inc., Paragon Offshore plc, Parker Drilling Company, Patterson-UTI Energy, Inc., Rowan Companies plc, Seacor Holdings Inc., TETRA Technologies,  Inc., Tidewater Inc., Unit Corporation and Vantage Corporation, to the extent such entities or their successors are in existence and have publicly traded common stock as of the last day of the applicable Performance Period, as may be adjusted by the Committee to account for extraordinary events, such as mergers, acquisitions, divestitures or bankruptcies, affecting the Company or such other entities.

		
	(i)
	“Peer Group SPP Chart” means the following chart:

	
		
	Company SPP Rank
	SPP Performance Earned Percentage

	1st
	100%

	2nd
	100%

	3rd
	100%

	4th
	90%

	5th
	80%

	6th
	70%

	7th
	60%

	8th
	50%

	9th
	40%

	10th
	30%

	11th
	20%

	12th
	10%

	13th
	0%

	14th
	0%

	15th
	0%

	16th
	0%

If the number of members of the Peer Group decreases prior to the end of a Performance Period, the Company SPP Rank shall be determined as follows: (i) the Company’s SPP shall be ranked among the SPPs of the remaining members of the Peer Group on of the last day of such Performance Period, with the highest SPP being ranked first, (ii) the rank of the Company’s SPP among the remaining members of the Peer Group on the last day of such Performance Period shall then be multiplied by a fraction, the numerator of which is 16 and the denominator of which is the number of members of the Peer Group on the last day of such Performance Period, and (iii) the number obtained in subclause (ii) shall be the Company SPP Rank on the Peer Group SPP Chart.
		
	(j)
	“Performance Certification Date” means, with respect to each Performance Period, the date(s) as of which the Committee makes its written certifications of the Company SPP Rank and the Downtime Performance Percentage for such Performance Period, as applicable, and its determination of whether and the extent to which the applicable Performance Requirements have been satisfied in accordance with Section 2(c).

		
	(k)
	“Performance Period” means each of the following three periods: (i) the period beginning on January 1, 2015 and ending on December 31, 2015, (ii) the period beginning on January 1, 2015 and ending on December 31, 2016 and (ii) the period beginning on January 1, 2015 and ending on December 31, 2017.

		
	(l)
	“Performance Requirement” means the condition that must necessarily be attained to earn the Performance Award pursuant to Section 2(a).

		
	(m)
	“SPP” means the common stock price growth (or loss) for each entity in the Peer Group over the Performance Period, as measured for each entity by dividing (i) the difference 

between the entity’s Ending Share Price and Starting Share Price, by (ii) the entity’s Starting Share Price.
		
	(n)
	“SPP Performance Earned Percentage” means the percentage in the column entitled “SPP Performance Earned Percentage” that corresponds to the Company SPP Rank on the Peer Group SPP Chart.

		
	(o)
	“Starting Share Price” means, with respect to a Performance Period, the average closing price of one share of common stock of the relevant Peer Group member over the 90-day period ending on the last day before the beginning of such Performance Period.

		
	(p)
	“Termination of Employment” means the act, event or condition by or upon which the Participant ceases to be an Employee.072315-Exhibit101

Exhibit 10.1

SECOND AMENDMENT TO 
CREDIT AGREEMENT
THIS SECOND AMENDMENT TO CREDIT AGREEMENT (“Amendment”) is dated as of July 22, 2015, by and among BUFFALO WILD WINGS, INC., a Minnesota corporation (“Borrower”), the undersigned “Lenders” parties to the Credit Agreement herein defined, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (in its individual capacity, “Wells Fargo,” and in its administrative agent capacity for the Lenders, “Administrative Agent”).  Capitalized terms used but not defined in this Amendment have the meanings given to them in the Credit Agreement.
RECITALS:
WHEREAS, Borrower, Administrative Agent and the “Lenders” referred to therein are parties to that certain Credit Agreement dated as of February 7, 2013 (as the same may be amended in writing and in effect from time to time, the “Credit Agreement”), pursuant to which Lenders have agreed to make loans and other financial accommodations available to the Borrower; and
WHEREAS, the Borrower has requested and the Lenders are willing to agree to certain modifications to the Credit Agreement, all subject and pursuant to the terms and conditions stated herein; 
NOW, THEREFORE, the parties hereby agree to amend the Credit Agreement as follows: 
1.    Definitions.  The following definitions in Section 1.1 of the Credit Agreement are hereby amended by adding the following definitions or, as applicable, deleting them in their entirety and substituting the following therefor:
“Applicable Margin” means the corresponding percentages per annum as set forth below based on the Consolidated Total Leverage Ratio:
	
					
	 
	 
	 
	Revolving Credit Loans

	Pricing Level
	Consolidated Total Leverage Ratio
	Commitment Fee
	LIBOR +
	Floating Rate +

	I
	Less than or equal to 0.50
	0.125%
	0.875%
	0.875%

	II
	Greater than or equal to 0.51 and less than or equal to 0.75
	0.125%
	1.000%
	1.00%

	III
	Greater than or equal to 0.76 and less than or equal to 1.50
	0.150%
	1.125%
	1.125%

	IV
	Greater than 1.50
	0.200%
	1.25%
	1.25%

	 
	 
	 
	 
	 

The Applicable Margin shall be determined and adjusted quarterly on the date (each a “Calculation Date”) ten (10) Business Days after the day by which the Borrower is required to provide an Officer’s Compliance Certificate pursuant to Section 7.2(a) for the most recently ended fiscal quarter of the Borrower; provided that (a) the Applicable Margin shall be based on Pricing Level I until the first Calculation Date occurring after the Closing Date and, thereafter the Pricing Level shall be determined by reference to the Consolidated Total Leverage Ratio as of the last day of the most recently ended fiscal quarter of the Borrower preceding the applicable Calculation Date, and (b) if 

4828-2140-3173.3

the Borrower fails to provide the Officer’s Compliance Certificate within ten (10) Business Days after the date required by Section 7.2(a) for the most recently ended fiscal quarter of the Borrower preceding the applicable Calculation Date, the Applicable Margin from such Calculation Date shall be based on Pricing Level IV until such time as an appropriate Officer’s Compliance Certificate is provided, at which time the Pricing Level shall be determined by reference to the Consolidated Total Leverage Ratio as of the last day of the most recently ended fiscal quarter of the Borrower preceding such Calculation Date.  The Applicable Margin shall be effective from one Calculation Date until the next Calculation Date.  Any adjustment in the Applicable Margin shall be applicable to all Extensions of Credit then existing or subsequently made or issued.
Notwithstanding the foregoing, in the event that any financial statement or Officer’s Compliance Certificate delivered pursuant to Section 7.1 or Section 7.2(a) is shown to be inaccurate (regardless of whether (i) this Agreement is in effect, (ii) the Revolving Credit Commitments are in effect, or (iii) any Extension of Credit is outstanding when such inaccuracy is discovered or such financial statement or Officer’s Compliance Certificate was delivered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then (A) the Borrower shall immediately deliver to the Administrative Agent a corrected Officer’s Compliance Certificate for such Applicable Period, (B) the Applicable Margin for such Applicable Period shall be determined as if the Consolidated Total Leverage Ratio in the corrected Officer’s Compliance Certificate were applicable for such Applicable Period, and (C) the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent the accrued additional interest and fees owing as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with Section 4.4.  Nothing in this paragraph shall limit the rights of the Administrative Agent and Lenders with respect to Sections 4.1(c) and 9.2 nor any of their other rights under this Agreement.  The Borrower’s obligations under this paragraph shall survive the termination of the Commitments and the repayment of all other Obligations hereunder (and such surviving obligations (to the extent none exist on the applicable Revolving Credit Maturity Date) shall for all purposes of this Agreement and the other Loan Documents be considered contingent indemnification obligations).
“Continuing Directors” means, during any period of 24 consecutive months after the Closing Date, individuals (i) who were members of the board of directors (or equivalent governing body) of the Borrower at the beginning of such 24 month period, or (ii) whose election or nomination for election to the board of directors (or equivalent governing body) of the Borrower was approved by a vote of a majority of the then Continuing Directors
“Revolving Credit Commitment” means (a) as to any Revolving Credit Lender, the obligation of such Revolving Credit Lender to make Revolving Credit Loans to the account of the Borrower hereunder in an aggregate principal amount at any time outstanding not to exceed the amount set forth opposite such Revolving Credit Lender’s name on Schedule 1.1A, as such amount may be modified at any time or from time to time pursuant to the terms hereof, and (b) as to all Revolving Credit Lenders, the aggregate commitment of all Revolving Credit Lenders to make Revolving Credit Loans, as such amount may be modified at any time or from time to time pursuant to the terms hereof.  The aggregate Revolving Credit Commitment of all the Revolving Credit Lenders on date of the Second Amendment shall be $200,000,000.

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“Revolving Credit Maturity Date” means the earliest to occur of (a) July 15, 2018, (b) the date of termination of the entire Revolving Credit Commitment by the Borrower pursuant to Section 2.5, or (c) the date of termination of the Revolving Credit Commitment pursuant to Section 9.2(a).
“Second Amendment” means that certain Second Amendment to Credit Agreement dated as of July 22, 2015 by and between the Borrower and Administrative Agent.
“Sweep Arrangement” has the meaning assigned thereto in Section 2.6.
2.    Sweep Arrangement.  Section 2.6 is hereby added to the Credit Agreement as follows:
Section 2.6    Sweep Arrangement.   Notwithstanding any provision herein to the contrary, and while Wells Fargo remains the sole Lender under this Agreement, Wells Fargo and the Borrower may agree that the Borrower may automatically draw and repay Revolving Credit Loans (subject to the limitations set forth herein) pursuant to cash management arrangements between the Borrower and Wells Fargo (the “Sweep Arrangement”).  Principal and interest on Revolving Credit Loans deemed requested pursuant to the Sweep Arrangement shall be paid pursuant to the terms and conditions agreed to between the Borrower and the Administrative Agent (without any deduction, setoff or counterclaim whatsoever).  The borrowing and disbursement provisions set forth in Section 2.2 and any other provision hereof with respect to the timing or amount of payments on the Revolving Credit Loans (other than as set forth in Section 2.4(a)) shall not be applicable to Revolving Credit Loans advanced and prepaid pursuant to the Sweep Arrangement.  Unless sooner paid pursuant to the provisions hereof or the provisions of the Sweep Arrangement, the principal amount of the Revolving Credit Loans shall be paid in full, together with accrued interest thereon, on the Revolving Credit Maturity Date.

3.    Investments.  Section 8.3(f) of the Credit Agreement is hereby deleted and replaced with the following:
(f)    Other Investments made after the Closing Date, provided that the aggregate amount of such other Investments at any time outstanding does not exceed $125,000,000.00.  In determining the amount of Investments permitted under this clause (f), loans, advances, bonds, notes, debentures and similar Investments shall be taken at the principal amount thereof then remaining unpaid, and stocks, mutual funds, partnership interests and similar Investments shall be taken at the original cost thereof (regardless of any subsequent appreciation or depreciation therein) net of any cash distributions in respect thereof.
4.    Liens.  Section 8.5(l) of the Credit Agreement is hereby deleted and replaced with the following:
(l)    Other Liens securing Indebtedness or other liabilities or obligations, provided that the aggregate principal amount of Indebtedness or other liabilities or obligations at any time outstanding secured by Liens described in this clause (l) at any time does not exceed $100,000,000.00.
5.    Minimum Consolidated EBITDA.  Section 8.11(c) of the Credit Agreement is hereby deleted and replaced with the following:
(c)    Minimum Consolidated EBITDA.  As of the last day of any fiscal quarter, permit Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date to be less than $150,000,000.00.

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6.    Schedules.  Schedule 1.1A to the Credit Agreement is deleted in its entirety and replaced with Schedule 1.1A attached to this Amendment.
7.    Revolving Credit Note.  In conjunction with the execution and delivery of this Amendment, Borrower shall execute and deliver a replacement Revolving Credit Note made payable by Borrower to the order of Wells Fargo Bank, National Association, in its capacity as a Lender, in the original principal amount of $200,000,000.00.  All references to the “Revolving Credit Note” contained in the Credit Agreement and/or the Loan Documents shall be deemed to refer to the Revolving Note delivered in conjunction with this Amendment.
8.    No Other Changes.  Except as explicitly amended by this Amendment, all of the terms and conditions of the Credit Agreement remain in full force and effect. 
9.    Conditions Precedent.  This Amendment shall be effective when the Administrative Agent shall have received an original hereof duly executed by all parties, together with each of the following, each in substance and form acceptable to the Administrative Agent in its sole discretion:
a)    a replacement Revolving Credit Note executed by Borrower in the original principal amount of $200,000,000.00;
b)    Resolutions of the Borrower authorizing the increase to the Revolving Credit Commitment;
c)    Officer’s Certificates from the Borrower and each Guarantor; and 
d)    such other documents and agreements referenced in or required by this Amendment, or as otherwise required by the Administrative Agent in its reasonable discretion.
10.    Representations and Warranties.  Except as explicitly amended by this Amendment, Borrower reaffirms that each of the Representations and Warranties contained in the Credit Agreement is true and correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date; and without limiting the forgoing, represent and warrant that the Credit Agreement, this Amendment and each of the other Loan Documents constitute the continuing legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, not subject to any existing defense, counterclaim or right of setoff by the Borrower, and to the extent that any such defense, counterclaim and/or setoff exists, each of the same are hereby absolutely and forever waived and released.
11.    Release.  Borrower and each of the undersigned Guarantors hereby absolutely and unconditionally releases and forever discharges Administrative Agent and each Lender, and each of their respective participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, that either Borrower or such Guarantor has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.

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12.    Miscellaneous.  Except as amended hereby, the Credit Agreement remains in full force and effect in accordance with its original terms.  Signature pages to this Amendment may be executed in any number of counterparts and by facsimile or email (PDF) transmission, all of which taken together shall constitute one and the same instrument.
[Signature Page Follows]

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first written above.

	
		
	 
	BUFFALO WILD WINGS, INC., as the Borrower

	 
	 

	 
	By:  /s/ Mary J. Twinem

	 
	Name:  Mary J. Twinem

	 
	Title:  Chief Financial Officer

	 
	 

	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Issuing Lender and Lender

	 
	 

	 
	By:  /s/ Cynthia S. Goplen

	 
	Name:  Cynthia S. Goplen

	 
	Title:  Senior Vice President

[Signature Page to Second Amendment to Credit Agreement Dated as of July 22, 2015]
US.73367847.01

GUARANTORS' CONSENT, REAFFIRMATION AND GENERAL RELEASE

Each of the undersigned guarantors of all indebtedness of BUFFALO WILD WINGS, INC. to WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent for the Lender Parties under the Credit Agreement dated as of  February 7, 2013, hereby:  (i) consents to the foregoing Amendment; (ii) reaffirms its obligations under its respective Guaranty; (iii) reaffirms its waivers of each and every one of the defenses to such obligations as set forth in its respective Guaranty; (iv) reaffirms that its obligations under its respective Guaranty are separate and distinct from the obligations of any other party under said Credit Agreement and the other Loan Documents described therein; and (v) agrees to join in and be bound by all of the terms and provisions of the General Release contained in Paragraph 11 of the Amendment.

	
		
	 
	BUFFALO WILD WINGS INTERNATIONAL, INC., as a Guarantor

	 
	 

	 
	By:  /s/ Mary J. Twinem

	 
	Name:  Mary J. Twinem

	 
	Title:  Chief Financial Officer

	 
	 

	 
	BLAZIN WINGS, INC., as a Guarantor

	 
	 

	 
	By:  /s/ Mary J. Twinem

	 
	Name:  Mary J. Twinem

	 
	Title:  Chief Financial Officer

[Consent, Reaffirmation and Release of Guarantors -- 
Second Amendment to Credit Agreement dated as of July 22, 2015]
US.73367847.01

SCHEDULE 1.1A
LENDER COMMITMENT AMOUNTS

Lender        Commitment Amount

Wells Fargo Bank, National Association    $200,000,000.00

 

US.73367847.01

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