Document:

ex10_2.htm

    Exhibit
10.2

     

    
      

      Denny’s
2009 Long-Term Performance Incentive Program

       

        
          

        

      

      
         

      

      Program
Concept

       

      The Compensation and Incentives Committee of the Board
of Directors has approved the 2009 Long-Term Performance Incentive (LTPI)
Program, an incentive compensation program pursuant to and subject to the
Denny’s Corporation 2008 Omnibus Incentive Plan.

       

      Under the
program, participants are granted a target number of performance shares and a
target cash award. From 0% to 200% of the target number of performance shares
and the target amount of cash may be earned based on the results of Denny’s
Total Shareholder Return (TSR), discussed further below. Once earned, the
performance shares convert to and are settled in shares of Denny’s stock on a
one-for-one basis.

       

      The
number of shares and the percentage of the cash target earned will be contingent
upon Denny’s TSR results as compared to its peers (refer to Peer Group listed
below).

       

      Please
refer to your individual award agreement for your target number of performance
shares and target cash award.

       

       

      Eligibility

       

      Vice
Presidents and above are eligible for the 2009 performance long-term incentive
awards.  At the discretion of the Executive Committee, and with
approval by the Compensation Committee, certain Directors and Senior Directors
may be eligible for these awards based on individual performance and
contributions to the Company.

       

       

      Performance
Period & Vesting Schedule

       

      The
performance period will be the three-year fiscal period beginning January 1,
2009 and ending December 28, 2011.  Performance shares will vest and
be earned at the end of the performance period.  Participants will
have no voting or dividend rights until the shares are distributed. The cash
award will also vest and be earned at the end of the performance
period.

      

      Participants
must be employed on the vesting date in order to vest in the award (except in
cases of death or disability, or otherwise as noted
below).  Termination for cause results in forfeiture of all unpaid
awards, including otherwise vested awards.

      

       

      How
Performance Is Measured

       

      Performance will be measured based on
the Total Shareholder Return (TSR) of Denny’s stock compared to the Total
Shareholder Returns of the stocks of Denny’s Peer Group over the three-year
performance period.  TSR combines share price appreciation and
dividends paid to show the total return to the shareholder.  TSR will
be calculated as follows:

       

      TSR =
(ending stock price – beginning stock price + reinvested dividends) / beginning
stock price

       

      A
20-trading day average will be used to determine the beginning and ending stock
prices for Denny’s and its Peer Group.  Based on this definition,
Denny’s beginning stock price as of January 1, 2009 is $1.945.

      

      Denny’s
TSR performance ranking compared to its Peer Group determines the payout level
as shown below.

       

      
        
          
            	 
      	
                    Denny’s
      TSR Performance Ranking vs. Peers

                  	
                    Payout
      as a % of Target

                  
	
                    Below
      Threshold

                  	
                    <
      25th %ile

                  	
                    0%

                  
	
                    Threshold

                  	
                    25th
      %ile

                  	
                    50%

                  
	
                    Target

                  	
                    50th
      %ile

                  	
                    100%

                  
	
                    Maximum

                  	
                    90th
      %ile

                  	
                    200%

                  

          

        

      

       

      Note:
Linear interpolation will be used to determine payouts which fall between given
points on this scale.

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Peer
Group

       

      Denny’s
TSR will be measured against the TSR of the following twenty peer
companies:

       

      Bob Evans
Farms, Inc.

      Brinker
International

      Buffalo
Wild Wings Inc.

      Burger
King Holdings

      California
Pizza Kitchen Inc.

      CKE
Restaurants

      Cracker
Barrel Old Country Store Inc.

      Darden
Restaurants

      DineEquity
Inc.

      Domino’s
Pizza Inc.

      Jack in
the Box Inc.

      O’Charley’s

      Panera
Bread Co.

      Papa
John’s International

      Red Robin
Gourmet Burgers

      Ruby
Tuesday, Inc.

      Sonic
Corp.

      Steak ‘n’
Shake Co.

      Texas
Roadhouse Inc.

      Wendy’s/Arby’s
Group

       

      

      Form
and Timing of Payout, and Taxation

       

      Participants
will receive their earned shares and cash as soon as practicable following the
end of the performance period, but no later than January 31,
2012.   Participants will be taxed on the value of the vested
shares and the vested cash on the date of payout. All applicable federal, state,
and local taxes will be withheld from the payment due to the
participant.  The closing stock price of Denny’s stock on the last
trading day preceding the date of payout will be used to determine the taxable
value of the shares.

       

      It is
intended that the payments under the LTPI Program shall either be exempt from
the application of, or comply with, the requirements of Section 409A of the
Internal Revenue Code.  The Program shall be construed in a manner
that effects such intent.  Nevertheless, the tax treatment of the
Program is not warranted or guaranteed.  Neither the Company, its
affiliates nor their respective directors, officers, employees or advisers
(other than in his or her capacity as a participant in the Program) shall be
held liable for any taxes, interest, penalties or other monetary amounts owed by
any participant or other taxpayer as a result of the LTPI Program.

       

       

      Impact
of Termination Events

       

      Participation
in the Plan does not constitute an offer or guarantee of
employment.  The table below shows the impact of various termination
events and a change in control:

       

      
        	
                Termination
      Event

              	
                Payout

              
	
                Death
      or disability

              	
                · Termination
      due to death or disability prior to vesting will result in pro rata
      vesting  of the amount earned, calculated  at the end
      of the quarter following the termination due to death or disability, and
      paid out as soon as administratively practicable thereafter.

                · Termination
      due to death or disability occurring between the vesting and payout dates
      will result in no change to the amount that would have been paid had the
      termination event not occurred.

              
	
                Termination
      for Cause

              	
                · Vested
      but unpaid and unvested awards will be forfeited.  No payout
      will occur even if awards had vested.

              
	
                Voluntary
      Termination (Resignation, Retirement)

              	
                · Vested
      but unpaid awards will be paid out in accordance with the regular payout
      schedule.  Unvested awards will be forfeited.

              
	
                Involuntary
      Termination Not for Cause

              	
                · Vested
      but unpaid awards will be paid out in accordance with the regular payout
      schedule.  Unvested awards will be forfeited.

              
	
                Change
      in Control

              	
                · Vested
      but unpaid awards will be paid out in accordance with the regular payout
      schedule, but no later than the date of the Change in
      Control.  Unvested awards will be deemed to be fully earned
      based on actual performance up to the date of the Change in Control, and
      will be paid out as soon as practicable but in no event sooner than 15
      days or later than 60 days following the Change in
  Control.

              

      

      

       

      Impact
on Other Plans

       

      Awards
are not considered pay for purposes of Denny’s retirement or welfare plans.
There will be no specific deferral opportunities under this
plan.ex10_3.htm

    Exhibit
10.3

     

    
      AMENDMENT
TO THE

      DENNY’S
CORPORATION 2008 OMNIBUS INCENTIVE PLAN

      

      THIS
AMENDMENT (this “Amendment”) to the Denny’s Corporation 2008 Omnibus Incentive
Plan (the “Plan”) was adopted as of November 11, 2008, by the Compensation and
Incentives Committee of the Board of Directors of Denny’s Corporation (the
“Company”).

      

      1.  The
Plan is hereby amended by deleting from Section 4.3(e) the following
words:

      

      “and
accelerations or waivers thereof,”

      

      2.  The
Plan is hereby amended by deleting Section 4.3(f) in its entirety and replacing
it with the following:

      

      “(f)           [Omitted]”

      

      3.  The
Plan is hereby amended by deleting Section 5.5 in its entirety and replacing it
with the following:

      

      “5.5    
MINIMUM VESTING
REQUIREMENTS.  Full-Value Awards granted under the Plan to an
employee, officer or consultant shall either (i) be subject to a minimum vesting
period of three years (which may include graduated vesting within such
three-year period), or one year if the vesting is based on performance criteria
other than continued service, or (ii) be granted solely in exchange for foregone
cash compensation. Notwithstanding the foregoing, the Committee may at its
discretion permit and authorize acceleration of vesting of such Full Value
Awards (i) in the event of the Participant’s death, Disability, or Retirement,
or the occurrence of a Change in Control, or (ii) with respect to Awards that do
not exceed 10% of the aggregate number of Shares reserved and available for
issuance under the Plan pursuant to Section 5.1, for (1) substitute Awards
granted in connection with a merger or consolidation, (2) Awards granted as an
inducement to join the Company as a new employee to replace awards from a former
employer, (3) Stock or Other Stock-Based Awards granted pursuant to Article 13
purely as a “bonus” and not subject to any restrictions or conditions, and (4)
Awards for which the Compensation Committee has discretion to accelerate the
lapse of restrictions upon the termination of service of the Participant for any
reason (other than death, Disability or Retirement) pursuant to Section
14.9.”

      

      4.  The
Plan is hereby amended by deleting from the first sentence of Section 13.1 the
words “without limitation” and replacing them with “, subject to Section
5.5,”

      

      5.  The
Plan is hereby amended by deleting Section 14.9 in its entirety and replacing it
with the following:

      

      “14.9    
ACCELERATION FOR OTHER
REASONS.  Regardless of whether an event has occurred as
described in Section 14.7 or 14.8 above, and subject to Section 5.5 as to
Full-Value Awards and Section 14.11 as to Qualified Performance-Based Awards,
the Committee may in its sole discretion at any time determine that, upon the
termination of service of a Participant for any reason, or the occurrence of a
Change in Control, all or a portion of a Participant's Options, SARs, and other
Awards in the nature of rights that may be exercised shall become fully or
partially exercisable, that all or a part of the restrictions on all or a
portion of the outstanding Awards shall lapse, and/or that any performance-based
criteria with respect to any Awards shall be deemed to be wholly or partially
satisfied, in each case, as of such date as the Committee may, in its sole
discretion, declare.  The Committee may discriminate among
Participants and among Awards granted to a Participant in exercising its
discretion pursuant to this Section 14.9.”

      

      6.  Except
as expressly amended hereby, the terms of the Plan, as previously amended, shall
be and remain unchanged and the Plan as amended hereby shall remain in full
force and effect.

      

      IN WITNESS WHEREOF, the Company has
caused this Amendment to be executed by a duly authorized as of the day and year
first above written.

      

      

      DENNY’S
CORPORATION

      

      

      By: /s/ Jill Van
Pelt                                

      Jill Van Pelt

      

      Its: Vice
President, Human Resources

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