Document:

Exhibit
4.6

EXECUTION
VERSION

 

IHOP FRANCHISING, LLC,

as Issuer

and

IHOP IP, LLC,

as Co-Issuer

and

WELLS FARGO BANK, NATIONAL ASSOCIATION

Indenture Trustee

and

FINANCIAL GUARANTY INSURANCE COMPANY

Series Insurer

 

SERIES SUPPLEMENT

for the Series 2007-1 Fixed Rate Term
Notes

 

March 16, 2007

 

This Series Supplement (the “Series Supplement”) is dated March 16, 2007 and is made
among IHOP FRANCHISING, LLC, a Delaware limited liability company (the “Issuer”), IHOP IP, LLC, a Delaware limited
liability company (the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”), Wells Fargo Bank, National Association,
as indenture trustee (herein, together with its permitted successors in the
trusts under the Indenture, called the “Indenture Trustee”), and Financial Guaranty Insurance Company, a New York stock insurance company, as insurer as to
the Notes issued pursuant to this Series Supplement (the “Series Insurer”).

W I T N E S S E T H:

WHEREAS, the Issuer, the Co-Issuer and
the Indenture Trustee
have entered into the Base Indenture (the “Base Indenture”), dated as of March 16, 2007 providing for the issuance from
time to time of one or more series of Notes, as provided therein.

WHEREAS, the Co-Issuers have determined
to issue a Series of Notes consisting of $175,000,000 Fixed Rate Term Notes (the “Series 2007-1 Notes”);

WHEREAS, the Co-Issuers and the
Indenture Trustee are executing and delivering this Series Supplement in order
to create and provide for the Series 2007-1 Notes (the “Series
Supplement” and, together with the Base Indenture, the “Indenture”); and

WHEREAS, the
Series 2007-1 Notes are to be insured by the Series Insurer in
accordance with the Insurance Policy (the “Insurance Policy”) of the Series Insurer, dated as of March 16, 2007 and the
Series Insurer is executing this Series Supplement in order to acknowledge and
confirm its rights and obligations relating to the Series 2007-1
Notes, the Series Insurer as provided by the Indenture, the Series 2007-1
Notes, the Insurance Policy and under the Insurance and Indemnification
Agreement (the “Insurance
Agreement”), dated as
of March 16, 2007, among the Co-Issuers, the Series Insurer, IHOP
Corp., International House of Pancakes, Inc., IHOP Holdings LLC and the
Indenture Trustee.

NOW, THEREFORE, in
consideration of mutual covenants and agreements and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties hereto agree as follows:

ARTICLE I

DEFINITIONS

Capitalized terms used herein without definition shall have the meanings given to such terms
in the Base Indenture.

  
  
 

ARTICLE II

[RESERVED]

ARTICLE III

CREATION OF SERIES 2007-1 NOTES; DESIGNATION

There is hereby created for issuance under
this Series Supplement, upon and subject to the conditions set forth in Article IV below, a Series of Notes designated
the Series 2007-1 Fixed Rate Term Notes (the “Series 2007-1
Notes”).  The Series 2007-1 Notes shall be a
Senior Series of Notes for purposes of the Indenture.  The Series 2007-1 Notes shall be
governed by the terms set forth in the Base Indenture and this Series
Supplement.

ARTICLE IV

CONDITIONS TO ISSUANCE

The Series 2007-1 Notes shall be
issued only upon (a) the satisfaction of the conditions precedent in the
Base Indenture (including but not limited to those set forth in Section 2.3 and Article III thereof) and (b) receipt by the
Indenture Trustee of the following:

(i)       counterparts of this
Series Supplement executed and delivered by the Co-Issuers, the Indenture
Trustee and the Series Insurer;

(ii)      a Company Order authorizing and directing the
authentication and delivery of the Series 2007-1 Notes by the
Indenture Trustee on the terms contained in this Series Supplement on
the date specified in such Company Order;

(iii)     the Insurance Policy and
the Insurance Agreement relating to the Series 2007-1 Notes;

(iv)    written confirmation that the
Series 2007-1 Notes will be rated “Aaa” by Moody’s and “AAA” by
S&P upon issuance; and

(v)     written
confirmation that the Series 2007-1 Notes will receive a shadow rating
(exclusive of the effect of any Insurance Policy) of at least “Baa3” by Moody’s
and at least “BBB-” by S&P upon issuance.

ARTICLE V

PRINCIPAL Terms

Section 5.1             Series 2007-1 Note
Interest Amount, Fees and Closing Date.

(a)           Series 2007-1 Note Interest Amount.  The Series 2007-1 Note Interest
Amount shall be payable in arrears on each Payment Date commencing on
April 20, 2007 as the 

 2
 

Series Interest Payment Amount relating to
the Series 2007-1 Notes.  The “Series 2007-1 Note Interest
Amount” shall be an amount equal to the accrued interest over
the immediately preceding Interest Accrual Period at the Series 2007-1
Note Interest Rate on the Series 2007-1 Outstanding Principal Amount
(on the first day of such Interest Accrual Period after giving effect to all
payments of principal made to Holders of such Series of Notes on such day),
calculated based on a 360-day year of twelve 30-day months.

The “Series 2007-1 Note Interest Rate”
shall be equal to a fixed rate of 5.144% per annum.

(b)           Series 2007-1 Contingent Additional Interest
Amounts.  The “Series 2007-1 Monthly
Extension Period Contingent Additional Interest Amount” shall
be, with respect to any Interest Accrual Period that occurs during a
Series 2007-1 Extension Period (as defined below), an amount of
additional interest on the Series 2007-1 Outstanding Principal
Amount (as of the first day of the preceding Interest Accrual Period and after
giving effect to all payments of principal made to Holders of such Series of
Notes on such day) accrued over the preceding Interest Accrual Period at an
annual rate equal to 0.25%, calculated based on a 360-day year of twelve
30-day months. The “Series 2007-1
Monthly Post-ARD Contingent Additional Interest Amount”
shall be, with respect to any Interest Accrual Period occurring from and after
the Series 2007-1 Anticipated Repayment Date if the Series 2007-1
Final Payment has not been made, an amount of additional interest on the
Series 2007-1 Outstanding Principal Amount (as of the first day of
the preceding Interest Accrual Period and after giving effect to all payments
of principal made to Holders of such Series of Notes on such day) accrued over
the preceding Interest Accrual Period at an annual rate equal to 0.25%,
calculated based on a 360-day year of twelve 30-day months. Any
Series 2007-1 Monthly Extension Period Contingent Additional
Interest Amount or Series 2007-1 Monthly Post-ARD Contingent
Additional Interest Amount (as applicable) is due and payable following accrual
as and when amounts are made available for payment thereof in accordance with
the Base Indenture, but such amounts will not be considered insured amounts
under the Series 2007-1 Insurance Policy and failure to pay any
Series 2007-1 Monthly Extension Period Contingent Additional
Interest Amount or Series 2007-1 Monthly Post-ARD Contingent
Additional Interest Amount (as applicable) shall not be an Event of Default and
Overdue Interest will not accrue on any unpaid portion thereof; provided, that all accrued but unpaid Series 2007-1
Monthly Extension Period Contingent Additional Interest or Series 2007-1
Monthly Post-ARD Contingent Additional Interest (as applicable) shall be
paid in full on the Series 2007-1 Legal Final Maturity Date, on any
Payment Date with respect to a prepayment in full of the Series 2007-1
Notes or on any other day on which all of the Series 2007-1 Notes
are required to be paid in full.  For
purposes of Article X and Article XI of the Base Indenture, any
Series 2007-1 Monthly Extension Period Contingent Additional
Interest Amount or Series 2007-1 Monthly Post-ARD Contingent
Additional Interest Amount, as applicable, shall be deemed a Series Additional
Interest Payment Amount and shall not be insured by the Series Insurer.

“Series 2007-1 Final Payment” means the
payment of all accrued and unpaid interest on, principal of and premium, if
any, on all Outstanding Series 2007-1 Notes, and the payment of all
accrued, and unpaid Insurer Premiums, Insurer Reimbursements and Insurer
Expenses relating to the Series 2007-1 Notes and any and all other
amounts due or that may become due to the Insurer in connection with the
Series 2007-1 Notes.  For the
avoidance of 

 3
 

doubt, occurrence of the Series 2007-1 Final Payment shall
not prejudice the rights of the Series Insurer under the Indenture or the
Insurance Agreement with respect to any amounts owed to the Series Insurer
relating to the Series 2007-1 Notes constituting Insurer Premiums,
Insurer Reimbursements and Insurer Expenses that remain unpaid.

(c)           Series 2007-1 Closing Date.  The Closing Date shall be March 16,
2007.

(d)           Series 2007-1 Initial Interest Accrual
Period.  The Initial Interest Accrual
Period for the Series 2007-1 Notes shall commence on the Closing
Date and end on April 19, 2007.

Section 5.2             Payment of 2007-1 Note
Principal.

(a)           Series 2007-1 Notes Principal Payment at
Legal Maturity.  The Series 2007-1
Outstanding Principal Amount shall be due and payable on the Series 2007-1
Legal Final Maturity Date.  The
Series 2007-1 Outstanding Principal Amount may be subject to
Mandatory Redemption pursuant to and in accordance with Section 9.1
of the Base Indenture and to Optional Redemption in whole or in part pursuant
to and in accordance with Section 9.2 of the Base
Indenture.

(b)           Series 2007-1 Anticipated Repayment Date.  The Series Anticipated Repayment Date for the
Series 2007-1 Notes shall be the Payment Date occurring in
March 2012, unless extended as provided below in this Section 5.2
(such date, the “Series 2007-1
Anticipated Repayment Date”).

(i)       First
Extension Election.  Subject to the
conditions set forth in Section 5.2(b)(iii) of this Series
Supplement, the Co-Issuers shall have the option on or before the Payment
Date occurring in September 2011 to elect (the “Series 2007-1 First Extension Election”)
to extend the Series 2007-1 Anticipated Repayment Date to the
Payment Date occurring in March 2013 by delivering written notice to the
Indenture Trustee, the Noteholders and the Series Insurer;

(ii)      Second
Extension Election.  Subject to the
conditions set forth in Section 5.2(b)(iii) of this Series
Supplement, if the Series 2007-1 First Extension Election has been
made and becomes effective, the Co-Issuers shall have the option on or
before the Payment Date occurring in September 2012 to elect (the “Series 2007-1 Second
Extension Election”) to further extend the Series 2007-1
Anticipated Repayment Date to the Payment Date occurring in March 2014 by
delivering written notice to the Indenture Trustee, the Noteholders and the
Series Insurer.

(iii)     Conditions
Precedent to Extension Elections.  It
shall be a condition to the effectiveness of the Series 2007-1
Extension Elections that, in the case of the Series 2007-1 First
Extension Election, on the Accounting Date occurring in February 2012 (the
“First Extension Determination Date”), or in the case of the
Series 2007-1 Second Extension Election, on the Accounting Date
occurring in February 2013 (the “Second Extension Determination Date”),
(a) the Series Debt Service Coverage Ratio relating to the
Series 2007-1 Notes is greater than or equal to 2.50x, or,
 unless the Series Debt Service Coverage Ratio relating to the
Series 2007-1 Notes is 

 4
 

equal to or greater than 2.50x, the Indenture Trustee has received the
written consent of the Series Controlling Party relating to the
Series 2007-1 Notes to such extension, (b) no Mandatory
Redemption Event relating to the Series 2007-1 Notes, Default or
Event of Default (or an event which with the lapse of time or giving of notice
would be such a Mandatory Redemption Event, Default or Event of Default) has
occurred and is continuing or would be a direct and immediate consequence of
such extension; and (c) IHOP System-wide Sales are greater than or
equal to $2,100,000,000.

For purposes of this Series Supplement, a “Series 2007-1
Extension Period” means, as applicable, the period from and including the
Payment Date occurring in March 2012 to and excluding the Payment Date
occurring in March 2013 following a Series 2007-1 First
Extension Election and subject to the satisfaction of all the conditions
required for such extension as of the First Extension Determination Date or the
period from and including the Payment Date occurring in March 2013 to and
excluding the Payment Date occurring in March 2014 following a
Series 2007-1 Second Extension Election and subject to the
satisfaction of all of the conditions required for such extension as of the
Second Extension Determination Date.

For purposes of this Series Supplement, “IHOP System-wide Sales”
means retail sales during the fiscal year preceding the First Extension
Determination Date or the Second Extension Determination Date, as the case may
be, of IHOP Restaurants operated by Franchisees, Area Licensees, and IHOP Corp.
or any Affiliate thereof.

(iv)              Any notice given pursuant to Section 5.2(b)(i)
or (ii) of this Series Supplement shall be irrevocable; provided
that if the conditions set forth in this Section 5.2(b)(iii)
are not met by the applicable date, the election set forth in such notice shall
automatically be deemed ineffective.

(v)               Pursuant to and in accordance with the Insurance
Policy and Premium Letter, in connection with the Series 2007-1
Notes, any such extension will result in an increase in premium as set forth in
the Premium Letter (as defined below) in connection with the Series 2007-1
Notes.

(c)           Series 2007-1 Notes Mandatory Payments of
Principal.  The Series 2007-1
Notes shall be subject to Mandatory Redemption as provided under and in
accordance with Section 9.1 of the Base Indenture.

(d)           Series 2007-1 Notices of Final Payment.  The Co-Issuers shall notify the
Indenture Trustee, the Series Insurer and the Rating Agencies on or before the
Record Date preceding the Payment Date which will be the Series 2007-1
Anticipated Repayment Date; provided, however,
that with respect to any final payment that is made in connection with any
mandatory or optional redemption in full, the Co-Issuers shall not be
obligated to provide any additional notice to the Indenture Trustee, the Series
Insurer or the Rating Agencies of such final payment beyond the notice required
to be given in connection with such redemption under Article IX of the
Base Indenture.  The Indenture Trustee
shall provide written notice to each person in whose name a Series 2007-1
Note is registered at the close of business on such Record Date that the
immediately succeeding Payment Date will be the Series 2007-1
Anticipated Repayment Date.  Such written
notice to be sent to the Series 2007-1 Noteholders shall be made 

 5
 

at the expense of the Co-Issuers and
shall be mailed by the Indenture Trustee within five (5) Business Days of
receipt of notice from the Co-Issuers indicating that the final payment
will be made and shall specify that such final payment will be payable only
upon presentation and surrender of the Series 2007-1 Notes and shall
specify the place where the Series 2007-1 Notes may be presented and
surrendered for such final payment.

Section 5.3             Principal
Terms of the Series 2007-1 Notes.  The Series 2007-1 Notes shall have
the following Principal Terms:

(a)           Initial
Series Aggregate Principal Amount. 
The Initial Series Aggregate Outstanding Principal Amount for the
Series 2007-1 Notes shall be $175,000,000.

(b)           Maximum
Series Aggregate Principal Amount. 
The maximum Aggregate Outstanding Principal Amount for the
Series 2007-1 Notes shall be $175,000,000.

(c)           Series
Insurer Premium Payable Amount.  The
Series Insurance Premium Payable Amount for Series 2007-1 Notes
shall be as set forth in the Premium Letter, dated as of Closing Date, between
the Co-Issuers and the Series Insurer.

(d)           Series
Specific Accounts Established Pursuant to Article X of the Base Indenture.

(i)       Series
2007-1 Interest Payment Account;

(ii)      Series
2007-1 Principal Payment Account;

(iii)     Series
2007-1 Interest Reserve Account;

(iv)    Series
2007-1 Trigger Reserve Account; and

(v)     Series
2007-1 Fee Payment Account.

(e)           Series
Initial Interest Reserve Deposit Amount. 
$2,408,000  shall
be deposited to the Series 2007-1
Note Interest Reserve Account on the Closing Date.

(f)            Series Interest Reserve Account Required Amount.  With respect to the Series 2007-1
Notes on each Payment Date and subsequent Weekly Allocation Date up to the next
Payment Date, (A) if the Series Debt Service Coverage Ratio determined as
of each of the three preceding Accounting Dates is equal to or greater than
2.25x, the Series Interest Reserve Account Required Amount shall be
(i) the aggregate amount, without duplication, of the Estimated Daily
Reserve Interest Amount for each day of the next Interest Accrual Period plus
(ii) the Series Insurer Premium Payable Amount with respect to the
Series 2007-1 Notes on the next Payment Date or (B) if the
Series Debt Service Coverage Ratio determined as of the as of any of the three
preceding Accounting Dates is less than 2.25x, the Series Interest Reserve
Account Required Amount shall be the product of (i) three
(3) and (ii) the amount determined in accordance with (A).

 6
 

For purposes of this Series
Supplement, “Estimated Daily
Reserve Interest Amount” means (a) for any day during
the first Interest Accrual Period, $26,756, (b) for any day during the
second Interest Accrual Period, $26,756, and (c) for any day during each
subsequent other Interest Accrual Period, the average of the Daily Reserve
Interest Amount for each day during the most recent prior two consecutive
Interest Accrual Periods.

For purposes of this Series Supplement, the “Daily Reserve Interest Amount” means the
(a) product of (i) the Series 2007-1 Note
Rate in effect for such Interest Accrual Period and (ii) the aggregate
principal amount of Series 2007-1 Notes Outstanding as of the close
of business on such day divided by (b) 360.

(g)           Series
Additional Interest Amount.  Any Series 2007-1
Monthly Extension Period Contingent Additional Interest and Series 2007-1
Post-ARD Contingent Additional Interest shall be deemed a Series
Additional Interest Amount as specified in Section 5.1(b).

(h)           Series
Legal Final Maturity Date.  The
Payment Date occurring in March 2037.

(i)            Ranking
of Series 2007-1 Notes. 
Series 2007-1 Notes rank pari passu as to principal and interest with
Series 2007-2 Notes and will at all times rank no less than pari passu as to principal and interest with any other
Series of Notes.

(j)            Series Insurer Make-Whole Premium.  The
Insurer Make-Whole Premium relating to the Series 2007-1 Notes
shall be as specified in the Premium Letter, dated as of the Closing Date,
among the Co-Issuers and the Series Insurer.

(k)           Series Optional Redemption Premium.  The Series Optional
Redemption Premium payable to Holders of the Series 2007-1 Notes
upon Optional Redemption of any Series 2007-1 Notes will be an amount equal to
the excess, if any, of (a) the discounted present value as of the related
Series 2007-1 Optional Redemption Premium Calculation Date of such
Series 2007-1 Optional Principal Redemption Amount as if paid on the
Payment Date occurring three months before the Series 2007-1
Anticipated Repayment Date and the amount of interest that would have been
payable thereon after the applicable Optional Redemption Date to but not
including the Payment Date occurring three months before the Series 2007-1
Anticipated Repayment Date, utilizing a discount rate equal to the Applicable
Treasury Rate plus 0.25%, over (b) such Series 2007-1
Optional Principal Redemption Amount.  All calculations of the Series Optional
Redemption Premium shall be calculated based on a 360-day year of
twelve 30-day months.

“Applicable Treasury Rate”
means the per annum interest rate borne by a U.S. Treasury obligation with a
tenor that is equal to the remaining Series 2007-1 Anticipated Life
as of such Series 2007-1 Optional Redemption Premium Calculation
Date, such discount rate to be converted to a monthly equivalent rate.  The Applicable Treasury Rate will be
determined, if necessary, by interpolating linearly between yields reported for
various maturities if no maturity corresponds to the applicable remaining
Series 2007-1 Anticipated Life. 
For purposes of such calculations, the Series 2007-1
Anticipated Life will be based on the period of time between such 

 7
 

Series 2007-1 Optional Redemption Premium
Calculation Date and the Payment Date occurring three months before the
Series 2007-1 Anticipated Repayment Date.

“Series 2007-1
Optional Redemption Premium Calculation Date” means the date
on which the applicable Series Optional Redemption Premium, if any, to be paid
in connection with an Optional Redemption will be calculated, which calculation
date shall be no earlier than the fifth Business Day before the applicable
Optional Redemption Date.

“Series 2007-1
Optional Principal Redemption Amount” means with respect to
any Optional Redemption Date the Aggregate Outstanding Principal Amount of
Series 2007-1 Notes to be redeemed.

“Series 2007-1
Anticipated Life” means, with respect to any date, the period
of time between such date and the Payment Date occurring three (3) months
prior to the Series 2007-1 Anticipated Repayment Date.

(l)            Series Minimum Debt Service Coverage Ratio.  The Series Minimum Debt Service Coverage
Ration applicable to the Series 2007-1 Notes shall be 1.50x.

(m)          Series IHOP Corp. Consolidated Ratio Threshold.  The Series IHOP Corp. Consolidated Ratio
Threshold applicable to the Series 2007-1 Notes shall be 7.00x.

(n)           Series Trigger Reserve Proportions and Related Series
DSCR Trigger Reserve Account Deposit Threshold Ranges.  On each Weekly Allocation Date, a Series
Trigger Reserve Proportion of (A) 40% shall be applicable if the Series
Debt Service Coverage Ratio determined as of the immediately preceding
Accounting Date is less than 1.85x and greater than or equal to 1.65x and
(B) 80% shall be applicable if the Series Debt Service Coverage Ratio
determined as of the immediately preceding Accounting Date is less than 1.65x.

(o)           Series Trigger Reserve Release Event.  With respect to any Payment Date that occurs
during a Series Trigger Reserve Period, a Series Trigger Reserve Release Event
relating to the Series 2007-1 Notes shall occur if
(A) (i) the least of the Series Debt Service Coverage Ratios relating
to the Series 2007-1 Notes as was determined as of each of the
preceding three Accounting Dates is greater than or equal to 1.65x and
(ii) the Series Debt Service Coverage Ratio relating to the
Series 2007-1 Notes as was determined as of the fourth preceding
Accounting Date was less than 1.65x or (B) (i) the least of the
Series Debt Service Coverage Ratios relating to the Series 2007-1
Notes as was determined each of the preceding three Accounting Dates is greater
than or equal to 1.85x and (ii) the Series Debt Service Coverage relating
to the Series 2007-1 Notes as was determined as of the fourth
preceding Accounting Date was less than 1.85x; provided, that
no Series Trigger Reserve Release Event relating to the Series 2007-1
Notes shall occur prior to the Payment Date occurring in September 2007, or if
a Default, Event of Default, Servicer Termination Event or a Mandatory Redemption
Event relating to the Series 2007-1 Notes is continuing.

(p)           Series Trigger Reserve Release Amount.  The Series Trigger Reserve Release Amount
with respect the Series 2007-1 Notes shall be equal to the amount,
if any, by which (a) the amount then on deposit in the Series 2007-1
Trigger Reserve Account exceeds (b) the Release Ratio Amount.

 8
 

For purposes of this Series Supplement, the “Release Ratio Amount”
is the amount of funds that would have been deposited to the Series 2007-1
Trigger Reserve Account during a Series Trigger Reserve Period had the Series
Debt Service Coverage Ratio during such Series Trigger Reserve Period been
equal to the least of the Series Debt Service Coverage Ratios relating to the
Series 2007-1 Notes as was determined as of any of the immediately
preceding three Accounting Dates, following a Series Trigger Reserve Release
Event.

For purposes of this Series Supplement, “Series Trigger Reserve
Period” means a period that commences on the first Accounting Date on which
the Series Debt Service Coverage Ratio with respect to the Series 2007-1
Notes is less than 1.85x and ending on the first subsequent Accounting Date on
which the Series Debt Service Coverage Ratio determined as of such Accounting
Date and the immediately preceding two Accounting Dates is equal to or greater
than 1.85x.

(q)           Series Interest Reserve Release Event.  On any Payment Date, a Series Interest
Reserve Release Event relating to the Series 2007-1 Notes occurs
when the amount on deposit in the Series 2007-1 Interest Reserve
Account is greater than the Series Interest Reserve Required Amount applicable
to the Series 2007-1 Notes; provided, that
no Series Interest Reserve Release Event relating to the Series 2007-1
Notes shall occur prior to Payment Date occurring in September 2007, or if a
Servicer Termination Event, Default, Event of Default or a Mandatory Redemption
Event relating to the Series 2007-1 Notes is continuing.

(r)            Series Interest Reserve Release Amount.  The Series Interest Reserve Release Amount
shall be the excess of the amount on deposit in the Series 2007-1
Interest Reserve Account over the Series Interest Reserve Account Required
Amount.

(s)           Additional Issuance Series DSCR Threshold.  The Additional Issuance Series DSCR Threshold
applicable to the Series 2007-1 Notes shall be 2.50x.

(t)            Defective Asset Payment Series DSCR Threshold.  The Defective Asset Payment Series DSCR
Threshold applicable to Series 2007-1 Notes shall be 3.50x.

(u)           Ste Series DSCR Threshold.  The STE Series DSCR Threshold applicable to
the Series 2007-1 Notes shall be 1.25x

(v)           EOD Series DSCR Threshold.  The EOD Series DSCR Threshold applicable to
the Series 2007-1 Notes shall be 1.25x.

(w)          Unhedged Floating Rate Principal Limit.  The Unhedged Floating Rate Principal Limit
applicable with respect to the Series 2007-1 Notes shall be
$50,000,000.

(x)            Other Provisions.  Payment of interest (but not any Series
Optional Redemption Premium, Overdue Interest relating to Series 2007-1
Notes, Series 2007-1 Monthly Extension Period Contingent Additional
Interest Amount or Series 2007-1 Monthly Post-ARD Contingent
Additional Interest Amount or any other similar amounts above the 2007-1 Series
Note Interest Rate) on the Series 2007-1 Notes when due and the full
payment of principal of the Series 2007-1 Notes at the Legal Final
Maturity Date is guaranteed by the Series Insurer pursuant to and in accordance
with the Insurance Policy and the Insurance Agreement.

 9
 

ARTICLE VI

RATIFICATION AND INCORPORATION OF BASE INDENTURE

Except as otherwise expressly provided
herein, all of the provisions, terms and conditions of the Base Indenture are
in all respects ratified and confirmed, and hereby incorporated by reference;
and the Base Indenture as so incorporated and modified by this Series
Supplement shall be taken, read and construed together with this Series
Supplement as one and the same instrument.

ARTICLE
VII

FORM OF NOTES

The form of the Series 2007-1 Notes, including the
Certificate of Authentication, shall be substantially as set forth as Exhibits A-1,
A-2 and A-3 to this Series Supplement, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
the Base Indenture or this Series Supplement, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon, as may be consistent herewith, determined by the Authorized
Officers of the Co-Issuers executing such Notes as evidenced by their
execution of such Notes.

The certificates evidencing the Series 2007-1 Notes will bear
legends substantially to the following effect unless the co-issuers determine
otherwise in compliance with applicable law.

THIS SERIES 2007-1 FIXED RATE TERM NOTE DUE 2037 (THIS “NOTE”) HAS NOT BEEN
AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”),
OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER RELEVANT
JURISDICTION, AND NEITHER IHOP FRANCHISING, LLC NOR IHOP IP, LLC (THE “CO-ISSUERS”) HAVE BEEN
REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”).  THIS NOTE OR ANY INTEREST HEREIN MAY BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO A PERSON WHO
IS NOT A COMPETITOR AND (B)(I) IN THE UNITED STATES TO EITHER AN INITIAL
PURCHASER OR A SUBSEQUENT TRANSFEREE WHO IS BOTH A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) AND A “QUALIFIED
PURCHASER” (WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT), ACTING FOR ITS
OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL
PURCHASER OR SUBSEQUENT TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH
OF WHICH IS BOTH A QUALIFIED INSTITUTIONAL BUYER AND A QUALIFIED PURCHASER, AND
NONE OF WHICH ARE (X) A DEALER OF THE TYPE DESCRIBED IN PARAGRAPH
(a)(1)(ii) OF RULE 144A UNLESS IT OWNS AND INVESTS ON A DISCRETIONARY BASIS NOT
LESS THAN $25,000,000 IN SECURITIES OF ISSUERS THAT ARE NOT AFFILIATED TO IT,
(Y) A PARTICIPANT-DIRECTED EMPLOYEE PLAN, SUCH AS A 401(k) PLAN, OR ANY 

 10
 

OTHER TYPE OF PLAN REFERRED TO IN PARAGRAPH
(a)(1)(i)(D) OR (a)(1)(i)(E) OF RULE 144A, OR A TRUST FUND REFERRED TO IN
PARAGRAPH (a)(1)(i)(F) OF RULE 144A THAT HOLDS THE ASSETS OF SUCH A PLAN, OR
(Z) FORMED FOR THE PURPOSE OF INVESTING IN THE CO-ISSUERS (EXCEPT WHERE EACH
BENEFICIAL OWNER IS A QUALIFIED PURCHASER), OR (II) OUTSIDE THE UNITED
STATES TO AN INITIAL PURCHASER OR A SUBSEQUENT TRANSFEREE WHO IS A QUALIFIED
PURCHASER AND NEITHER A “U.S. PERSON” AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT (“REGULATION S”)
NOR A “U.S. RESIDENT” AS DEFINED FOR PURPOSES OF THE INVESTMENT COMPANY ACT,
ACTING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH
INITIAL PURCHASER OR SUBSEQUENT TRANSFEREE EXERCISES SOLE INVESTMENT
DISCRETION, EACH OF WHICH IS A QUALIFIED PURCHASER, AND NONE OF WHICH ARE A
U.S. PERSON OR A U.S. RESIDENT, IN OFFSHORE TRANSACTIONS IN RELIANCE ON
REGULATION S, AND, IN EACH CASE, IN COMPLIANCE WITH THE CERTIFICATIONS AND
OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN AND ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OR THE UNITED STATES AND ANY OTHER
RELEVANT JURISDICTION.  EACH INITIAL
PURCHASER AND EACH SUBSEQUENT TRANSFEREE TAKING DELIVERY OF THIS NOTE OR AN
INTEREST IN THIS NOTE WILL BE DEEMED TO HAVE MADE THE APPLICABLE
REPRESENTATIONS AND AGREEMENTS REFERRED TO IN THE INDENTURE.  EACH INITIAL PURCHASER AND EACH SUBSEQUENT
TRANSFEREE TAKING DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE IN THE FORM
OF AN INTEREST IN A [REGULATION S GLOBAL NOTE] [RESTRICTED NOTE] OR [AN
UNRESTRICTED NOTE] WILL BE REQUIRED TO DELIVER A TRANSFER CERTIFICATE IN THE
FORM REQUIRED BY THE INDENTURE AND WILL BE REQUIRED TO MAKE THE APPLICABLE
REPRESENTATIONS AND AGREEMENTS REFERRED TO IN THE INDENTURE.

ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING WILL BE OF NO
FORCE AND EFFECT AND WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER
ANY RIGHTS TO THE INITIAL PURCHASER OR SUBSEQUENT TRANSFEREE, NOTWITHSTANDING
ANY INSTRUCTIONS TO THE CONTRARY TO THE CO-ISSUERS, THE TRUSTEE OR ANY
INTERMEDIARY.

THE CO-ISSUERS MAY REQUIRE ANY HOLDER OF THIS NOTE WHO IS DETERMINED
NOT TO HAVE BEEN BOTH A QUALIFIED INSTITUTIONAL BUYER AND A QUALIFIED PURCHASER
AT THE TIME OF ACQUISITION OF THIS NOTE TO SELL THIS NOTE TO A PERSON WHO IS
(I) BOTH A QUALIFIED INSTITUTIONAL BUYER AND A QUALIFIED PURCHASER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) A QUALIFIED
PURCHASER IN A TRANSFER PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OR (III) A
QUALIFIED PURCHASER AND NEITHER A U.S. PERSON NOR A U.S. RESIDENT IN A
TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S.

The certificates evidencing the Series 2007-1 Notes that are Regulation
S Global Notes will also bear legends substantially to the following effect
unless the Co-Issuers determine otherwise in compliance with applicable law:

 11
 

UNTIL 40 DAYS AFTER THE ORIGINAL ISSUE DATE OF THE NOTES (THE “RESTRICTED PERIOD”) IN
CONNECTION WITH THE OFFERING OF THE NOTES IN THE UNITED STATES FROM OUTSIDE OF
THE UNITED STATES, THE SALE, PLEDGE OR TRANSFER OF THIS NOTE IS SUBJECT TO
CERTAIN CONDITIONS AND RESTRICTIONS.  THE
HOLDER HEREOF, BY PURCHASING OR OTHERWISE ACQUIRING THIS NOTE, ACKNOWLEDGES
THAT SUCH HOLDER IS A QUALIFIED PURCHASER, AND THAT THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE
CO-ISSUERS THAT THIS NOTE MAY BE TRANSFERRED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY TO A QUALIFIED PURCHASER AND IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE LAWS OF THE STATES, TERRITORIES AND POSSESSIONS OF THE
UNITED STATES GOVERNING THE OFFER AND SALE OF SECURITIES, AND PRIOR TO THE
EXPIRATION OF THE RESTRICTED PERIOD, ONLY (I) IN AN OFFSHORE TRANSACTION
IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (II) PURSUANT
TO AND IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT.

Each Series 2007-1 Note in global form will bear a legend substantially
to the following effect unless the Co-Issuers determine otherwise in compliance
with applicable law:

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY (“DTC”),
A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK 10004, OR A NOMINEE
THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED,
IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.  UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO THE CO-ISSUERS OR THE REGISTRAR, AND ANY
NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE
& CO., HAS AN INTEREST HEREIN.

ARTICLE VIII

GOVERNING LAW

THIS SERIES SUPPLEMENT AND EACH OF THE SERIES 2007-1
NOTES SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CHOICE OF LAW RULES (OTHER THAN SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).

 12
 

ARTICLE IX

EXECUTION IN COUNTERPARTS; EFFECTIVE TIME

This Series Supplement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one
and the same instrument.  This Series
Supplement shall become effective upon the execution of a counterpart hereof by
the Co-Issuers, the
Indenture Trustee and the Series Insurer.

ARTICLE X

MODIFICATION
OF SERIES SUPPLEMENT

This Series Supplement may not be modified except by a writing executed
by all parties hereto.

 13

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

	
  

  	
  IHOP FRANCHISING, LLC, as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARK D. WEISBERGER

  
	
   

  	
   

  	
  Name: Mark D. Weisberger

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IHOP IP, LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ THOMAS G. CONFORTI

  
	
   

  	
   

  	
  Name: Thomas G. Conforti

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, not in its individual

  capacity, but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ BENJAMIN J. KRUEGER

  
	
   

  	
   

  	
  Name: Benjamin J. Krueger

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FINANCIAL
  GUARANTY INSURANCE COMPANY, as Series

  Insurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DEREK DONNELLY

  
	
   

  	
   

  	
  Name: Derek Donnelly  

  
	
   

  	
   

  	
  Title: DirectorExhibit 4.7
  EXECUTION VERSION
 

IHOP FRANCHISING, LLC,

as Issuer

IHOP IP,
LLC,

as Co-Issuer

and

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

Indenture Trustee

and

FINANCIAL
GUARANTY INSURANCE COMPANY

Series Insurer

SERIES SUPPLEMENT

for the
Series 2007-2 Variable Funding Notes

March 16, 2007

 

   
 

This Series Supplement
(the “Series Supplement”
or the “Series 2007-2 Series
Supplement”) is dated March 16, 2007 and is made among IHOP
Franchising, LLC, a Delaware limited liability company (the “Issuer”),
IHOP IP, LLC, a Delaware limited liability company (the “Co-Issuer” and,
together with the Issuer, the “Co-Issuers”),
Wells Fargo Bank, National Association, as indenture trustee (herein, together
with its permitted successors in the trusts under the Indenture, called the “Indenture Trustee”),
and Financial Guaranty Insurance Company, a New York insurance company, as
insurer as to the Notes issued pursuant to this Series Supplement (the “Series Insurer”).

W I T N E S S E T H:

WHEREAS,
the Issuer, the Co-Issuer and the Indenture Trustee have entered into the Base Indenture (the “Base Indenture”), dated as of the Closing Date providing
for the issuance from time to time of one or more series of Notes, as provided
therein.

WHEREAS,
the Issuer has determined to issue a Series of Notes consisting of up to
$25,000,000 Variable Funding
Notes (the “Series 2007-2
Notes”);

WHEREAS,
the Co-Issuers and the Indenture Trustee are executing and delivering
this Series Supplement in order to create and provide for the Series 2007-2
Notes;

WHEREAS,
the Co-Issuers, International House of Pancakes, Inc., Wells Fargo Bank,
National Association, certain conduit investors, certain financial institutions
and certain funding agents have executed and delivered the Series 2007-2
Note Purchase Agreement (the “Series 2007-2 Note Purchase Agreement”), dated as of the date hereof; and

WHEREAS,
the Series 2007-2 Notes are to be insured by the Series Insurer in
accordance with the Insurance Policy (the “Insurance Policy”) of the Series Insurer, dated as of 
the Closing Date and the Series Insurer is executing this Series
Supplement in order to acknowledge and confirm its rights and obligations
relating to the Series 2007-2 Notes as provided by the Indenture,
the Series 2007-2 Notes, the Insurance Policy and under the
Insurance and Indemnification Agreement (the “Insurance Agreement”), dated as of the Closing Date, among the Co-Issuers, the
Series Insurer, IHOP Corp., International House of Pancakes, Inc., IHOP
Holdings LLC and the Indenture Trustee.

NOW,
THEREFORE, in consideration of mutual covenants and agreements and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:

                 
 

 

ARTICLE I

DEFINITIONS

Capitalized
terms used herein without definition shall have the meanings given to
such terms in the Base Indenture.

ARTICLE
II

[RESERVED]

ARTICLE
III

CREATION OF SERIES 2007-2 NOTES; TERMS AND CONDITIONS

There
is hereby created for issuance under this Series Supplement, upon and subject
to the conditions set forth in Article IV below, a Series of Notes designated
the Series 2007-2 Variable Funding Notes (the “Series 2007-2 Notes”). The Series 2007-2 Notes shall be a
Senior Series of Notes for purposes of the Indenture. The Series 2007-2
Notes shall be governed by the terms set forth in the Base Indenture and this
Series Supplement.

ARTICLE
IV

CONDITIONS TO ISSUANCE

The
Series 2007-2 Notes shall be issued only upon (a) the
satisfaction of the conditions precedent in the Base Indenture (including but
not limited to those set forth in Section 2.3 and Article III)
and (b) receipt by the Indenture Trustee of the following:

(i)       counterparts
of this Series Supplement executed and delivered by the Co-Issuers, the
Indenture Trustee and the Series Insurer;

(ii)      a Company Order authorizing and directing the
authentication and delivery of the Series 2007-2 Notes by the
Indenture Trustee on the terms contained in this Series Supplement on
the date specified in such Company Order;

(iii)     the Insurance Policy and
the Insurance Agreement relating to the Series 2007-2 Notes;

(iv)    written confirmation that the
Series 2007-2 Notes will be rated “Aaa” by Moody’s and “AAA” by
S&P upon issuance; and

(v)     written
confirmation that the Series 2007-2 Notes will receive a shadow rating
(exclusive of the effect of any Insurance Policy) of at least “Baa3” by Moody’s
and at least “BBB-” by S&P upon issuance.

 2
 

 

ARTICLE V

INITIAL ISSUANCE, INCREASES AND DECREASES OF

SERIES 2007-2 NOTES OUTSTANDING PRINCIPAL AMOUNT AND REDEMPTION OF
SERIES 2007-2 NOTES

Section 5.1             Procedures for Issuing and
Increasing the Series 2007-2 Notes Outstanding Principal Amount.  Subject
to satisfaction of the conditions precedent to the making of Series 2007-2
Advances set forth in the Series 2007-2 Note Purchase Agreement,
(i) on the Closing Date, the Co-Issuers may cause the 2007-2
Initial Advance Principal Amount to become outstanding by drawing ratably, at
par, on the basis of Commitment Percentage as set forth in the Series 2007-2
Note Purchase Agreement, the initial principal amounts of the Series 2007-2
Advance Notes corresponding to the aggregate amount of the Series 2007-2
Advances made on the Series 2007-2 Closing Date (the “Series 2007-2 Initial Advance”)
and (ii) on any Business Day during the Series 2007-2
Commitment Term, the Co-Issuers may increase the Series 2007-2
Outstanding Principal Amount (such increase referred to as an “Increase”), by drawing
ratably, at par, on the basis of Commitment Percentage as set forth in the
Series 2007-2 Note Purchase Agreement, additional principal amounts
on the Series 2007-2 Advance Notes corresponding to the aggregate
amount of the Series 2007-2 Advances made on such Business Day; provided
that at no time may the Series 2007-2 Aggregate Outstanding
Principal Amount exceed the Series 2007-2 Maximum Principal Amount.
The 2007-2 Initial Advance and each Increase shall be made in accordance
with the provisions of Sections 2.02 and 2.03 of the Series 2007-2
Note Purchase Agreement and shall be ratably allocated among the
Series 2007-2 Noteholders as provided therein.  Proceeds from the 2007-2 Initial
Advance and each Increase shall be paid as directed by the Co-Issuers in
the applicable Series 2007-2 Advance Request or as otherwise set
forth in the Series 2007-2 Note Purchase Agreement.  Upon receipt of written notice from the Co-Issuers
or the Administrative Agent of the 2007-2 Initial Advance and any
Increase, the Indenture Trustee shall indicate in its books and records the
amount of the Series 2007-2 Initial Advance or such Increase, as
applicable.

Section 5.2             Procedures for Decreasing the
Series 2007-2 Outstanding Principal Amount; Optional Redemption.

(a)           Mandatory Decrease. 
Upon a Mandatory Redemption Event relating to the Series 2007-2
Notes under Section 9.1 of the Base Indenture, the Co-Issuers shall
redeem Series 2007-2 Notes pursuant to Section 9.1 of the Base
Indenture (a “Mandatory Decrease”).  Such Mandatory Decrease shall be allocated
among the Series 2007-2 Noteholders ratably on the basis of
Commitment Percentage as set forth in the Series 2007-2 Note
Purchase Agreement.  In connection
thereto, the Co-Issuers shall direct the Indenture Trustee in writing to
distribute (i) the Mandatory Redemption Amount equal to the amount of such
Mandatory Decrease in accordance with Section 9.1 of the Base Indenture plus (ii) any associated fees incurred as a result of
such decrease under the Series 2007-2 Note Purchase Agreement.

(b)           Voluntary Decrease. 
On any Business Day (a “Decrease
Date”), upon at least three (3) Business Day’s prior
written notice to each Series 2007-2 Investor, the Series 2007-2
Administrative Agent, the Indenture Trustee and the Series Insurer, the Co-Issuers
may decrease the Series 2007-2 Outstanding Principal Amount (each
such decrease of the 

 3
 

 

Series 2007-2 Outstanding Principal
Amount pursuant to this Section 5.2(b), a “Voluntary Decrease,” and together with any
Mandatory Decrease, a “Decrease”)
by depositing in the Series 2007-2 Principal Payment Account on the
Business Day preceding the date specified as the Decrease Date in the prior
written notice referred to above and providing a written report to the
Indenture Trustee directing the Indenture Trustee to distribute ratably on the
basis of Commitment Percentage as set forth in the Series 2007-2
Note Purchase Agreement (i) an amount (subject to the last sentence of
this Section 5.2(b)) up to the Series 2007-2 Outstanding
Principal Amount equal to the amount of such Voluntary Decrease, plus (ii) any associated fees incurred as a result of
such decrease under the Series 2007-2 Note Purchase Agreement.

(c)           Notations. Upon distribution to the
Series 2007-2 Noteholders of principal of the Series 2007-2
Advance Notes in connection with each Decrease, the Indenture Trustee shall
indicate in its books and records such Decrease.

(d)           Optional Redemption of the Series 2007-2
Notes.  Subject to the 2007-2 Note
Purchase Agreement, the Series 2007-2 Notes shall be subject to
redemption (in whole or in part) by the Co-Issuers at their option in
accordance with Section 9.2 of the Base Indenture. The Optional Redemption
Price for the Series 2007-2 Notes shall equal the sum of
(a) the Aggregate Outstanding Principal Balance of such Series 2007-2
Notes (determined after giving effect to any payments of principal and interest
on the Payment Date immediately preceding the date of redemption pursuant to
this Section 5.2(d)) plus
(b) (i) with respect to the portion of such principal balance which
was funded with Class A Commercial Paper (as defined in the
Series 2007-2 Note Purchase Agreement) issued at a discount, all
accrued and unpaid discount on such Class A Commercial Paper (as defined
in the Series 2007-2 Note Purchase Agreement) from the issuance
date(s) thereof to the date of redemption under this Section 5.2(d)
and the aggregate discount to accrue on such Class A Commercial Paper (as
defined in the Series 2007-2 Note Purchase Agreement) from the date
of redemption under this Section 5.2(d) to the maturity date of
such Class A Commercial Paper (as defined in the Series 2007-2
Note Purchase Agreement) less the interest on such amount accrued during such
period at a per annum rate equal to the Series 2007-2 Note Rate or
(ii) with respect to the portion of such principal balance which was
funded with Class A Commercial Paper (as defined in the Series 2007-2
Note Purchase Agreement) that was not issued at a discount, all accrued and
unpaid interest on such Class A Commercial Paper (as defined in the
Series 2007-2 Note Purchase Agreement) from the issuance date(s)
thereof to the date of redemption under this Section 5.2(d) (and
any breakage costs associated with the prepayment of such interest-bearing
Class A Commercial Paper (as defined in the Series 2007-2 Note
Purchase Agreement)) or (iii) with respect to the portion of such
principal balance which was funded other than with Class A Commercial
Paper (as defined in the Series 2007-2 Note Purchase Agreement), all
accrued and unpaid interest on such principal balance through the date of
redemption under this Section 5.2(d), plus
(c) any other amounts then due and payable to the Holders of such
Series 2007-2 Notes pursuant hereto and pursuant to the
Series 2007-2 Note Purchase Agreement.  As a condition precedent to any redemption
thereof, on or prior to the date on which any Series 2007-2 Note is
redeemed by the Co-Issuer pursuant to this Section 5.2(d),
the Co-Issuers shall pay the Series Insurer all amounts owed to the
Series Insurer relating to such Note. For the avoidance of doubt, a Voluntary
Decrease in respect of the Series 2007-2 Notes is governed by Section 5.2(b)
of this Series Supplement and not by this Section 5.2(d).

 4
 

 

ARTICLE
VI

Principal Terms

Section 6.1             Series 2007-2 Note
Interest Amount, Fees and Closing Date.

(a)           Series 2007-2 Note Interest Amount. The
Series 2007-2 Note Interest Amount shall be payable in arrears on
each Payment Date commencing on April 20, 2007 as the Series Interest Payment
Amount relating to the Series 2007-2 Notes. The “Series 2007-2 Note Interest
Amount” shall be an amount equal to interest accrued on
applicable portions of the Series 2007-2  Note Aggregate Outstanding Principal Amount
as provided in
Section 3.01 or 2.06 (as applicable) of the 2007-2 Note Purchase
Agreement. For purposes of this Series Supplement, the rate of interest
accrued pursuant to Sections 2.06 or 3.01 of the 2007-2 Note Purchase Agreement
(as applicable) is hereby defined as the “Series 2007-2 Note Interest Rate”.

(b)           Series 2007-2 Note Fees.  From and after the Series 2007-2
Closing Date, Series 2007-2 Note Fees (“Series 2007-2 Note Fees”) shall include
such costs and expenses that will accrue (i) as provided in Sections 3.02,
3.05, 3.06, 3.07, 3.08 and 9.05 of the Series 2007-2 Note Purchase
Agreement and (ii) as otherwise provided in this Series Supplement or the
Series 2007-2 Note Purchase Agreement (other than interest). Such
accrued fees will be due and payable in arrears on each Payment Date,
commencing on April 20, 2007.  To the
extent any such amount is not paid when due, such unpaid amount will accrue
interest at the applicable Base Rate (as defined in the Series 2007-2 Note
Purchase Agreement). Such Series 2007-2 Note Fees will be included
in the Series Fee Payment Amount relating to the Series 2007-2 Notes
with respect to Section 11.1(c) of the Base Indenture.

(c)           Series 2007-2 Contingent Additional Interest
Amounts.  The “Series 2007-2 Monthly
Extension Period Contingent Additional Interest Amount” shall
be, with respect to any Interest Accrual Period occurring within a
Series 2007-2 Extension Period (as defined below), an amount of
additional interest on the Series 2007-2 Outstanding Principal
Amount (giving effect to all payments of principal made to Holders of such
Series of Notes during such Interest Accrual Period and Increase or Decrease
made during such Interest Accrual Period) accrued over the preceding Interest
Accrual Period at an annual rate equal to 0.25%, calculated based on a 360-day
year of twelve 30-day months. The “Series 2007-2 Monthly Post-ARD Contingent Additional
Interest Amount” shall be, from and after the Series 2007-2
Anticipated Repayment Date if the Series 2007-2 Final Payment has
not been made, an amount of additional interest on the Series 2007-2
Outstanding Principal Amount (giving effect to all payments of principal made
to Holders of such Series of Notes during such Interest Accrual Period and any
Increase or Decrease made during such Interest Accrual Period) accrued over the
preceding Interest Accrual Period at an annual rate equal to 0.25%, calculated
based on a 360-day year of twelve 30-day months. Any Series 2007-2
Monthly Extension Period Contingent Additional Interest Amount or
Series 2007-2 Monthly Post-ARD Contingent Additional Interest Amount
(as applicable) is due and payable following accrual as and when amounts are
made available for payment thereof in accordance with the Base Indenture, but
such amounts will not be considered insured amounts under the Series 2007-2
Insurance Policy and failure to pay any Series 2007-2 Monthly
Extension Period Contingent Additional Interest Amount or Series 2007-2
Monthly Post-ARD Contingent Additional Interest Amount (as applicable) shall

 5
 

 

not be an Event of Default and Additional
Interest will not accrue on any unpaid portion thereof; provided,
that all accrued but unpaid Series 2007-2 Monthly Extension Period
Contingent Additional Interest or Series 2007-2 Monthly Post-ARD
Contingent Additional Interest (as applicable) shall be paid in full on the
Series 2007-2 Legal Final Maturity Date, on any Payment Date with
respect to a prepayment in full of the Series 2007-2 Notes or on any
other day on which all of the Series 2007-2 Notes are required to be
paid in full. For purposes of Article X and Article XI of the Base Indenture,
any Series 2007-2 Monthly Extension Period Contingent Additional
Interest Amount or Series 2007-2 Monthly Post-ARD Contingent
Additional Interest Amount, as applicable, shall be deemed a Series Additional
Interest Payment Amount and shall not be insured by the Series Insurer.

“Series 2007-2 Final Payment” means the
payment of all accrued and unpaid interest on and principal of all Outstanding
Series 2007-2 Notes, the payment of all accrued and unpaid
Series 2007-2 Insurer Premiums and Insurer Reimbursements and
Insurer Expenses and any and all other amounts due or that may become due to
the Insurer in connection with the Series 2007-2 Notes, the payment
of all fees and expenses and other amounts then due and payable under the
Series 2007-2 Note Purchase Agreement and the termination in full of
all Series 2007-2 Commitments. 
For the avoidance of doubt, occurrence of the Series 2007-2
Final Payment shall not prejudice the rights of the Insurer under the Indenture
or the Insurance Agreement with respect to any amounts owed to the Insurer
constituting Insurer Premiums, Insurer Reimbursements and Insurer Expenses that
remain unpaid.

(d)           Series 2007-2 Closing Date.  The Closing Date shall be March 16, 2007 (the
“Closing Date”
or the “Series 2007-2 Closing
Date”).

(e)           Series 2007-2 Initial Interest Accrual
Period.  The Initial Interest Accrual
Period for the Series 2007-2 Notes shall commence on the Closing
Date and end on April  19, 2007.

Section 6.2             Payment of 2007-2 Note
Principal.

(a)           Series 2007-2 Notes
Principal Payment at Legal Maturity. 
The Series 2007-2 Outstanding Principal Amount shall be due
and payable on the Series 2007-2 Legal Final Maturity Date.

(b)           Series 2007-2
Anticipated Repayment Date.  The
Series Anticipated Repayment Date for the Series 2007-2 Notes shall
be the Payment Date occurring in March 2012, unless extended as provided
below in this Section 6.2 (such date, the “Series 2007-2 Anticipated Repayment Date”).

(i)       First
Extension Election.  Subject to the
conditions set forth in Section 6.2(b)(iii) of this Series
Supplement, the Co-Issuers, shall have the option on or before the
Payment Date occurring in September 2011 to elect (the “Series 2007-2 First Extension
Election”) to extend the Series 2007-2 Anticipated
Repayment Date to the Payment Date occurring in March 2013 by delivering
written notice to the Indenture Trustee, the Administrative Agent, the
Series 2007-2 Noteholders and the Series Insurer;

 6
 

 

(ii)      Second
Extension Election.  Subject to the
conditions set forth in Section 6.2(b)(iii) of this Series
Supplement, if the Series 2007-2 First Extension Election has been
made and becomes effective, the Co-Issuers, shall have the option on or
before the Payment Date occurring in September 2012 to elect (the “Series 2007-2 Second
Extension Election”) to further extend the Series 2007-2
Anticipated Repayment Date to the Payment Date occurring in September 2014 (the
“Series 2007-2 Second
Extended Anticipated Repayment Date”) by delivering written
notice to the Indenture Trustee, the Administrative Agent, the Series 2007-2
Noteholders and the Series Insurer.

(iii)     Conditions
Precedent to Extension Elections.  It
shall be a condition to the effectiveness of the Series 2007-2
Extension Elections that, in the case of the Series 2007-2 First
Extension Election, on the Accounting Date occurring in February 2012 (the
“First Extension Determination
Date”) or in the case of the Series 2007-2 Second
Extension Election, on the Accounting Date occurring in February 2013 (the
“Second Extension Determination
Date”), (a) (i) the Series Debt Service Coverage Ratio
is greater than or equal to 2.50x, or, (ii) unless the Series Debt Service
Coverage Ratio is equal to or greater than 2.50x, the Indenture Trustee has
received the written consent of the Series Controlling Party relating to the
Series 2007-2 Notes to such extension, (b) no Mandatory Redemption
Event relating to the Series 2007-2 Notes, Default or Event of
Default (or an event which with the lapse of time or giving of notice would be
such a Mandatory Redemption Event, Default or Event of Default) has occurred
and is continuing or would be a direct and immediate consequence of such
extension; and (c) IHOP System-wide Sales are greater than or equal to
$2,100,000,000.

For purposes of this
Series Supplement, a “Series 2007-2
Extension Period” means, as applicable, (a) the period from
and including the Payment Date occurring in March 2012 to and excluding
the Payment Date occurring in March 2013 following a Series 2007-2
First Extension Election and subject to the satisfaction of all the conditions
required for such extension as of the First Extension Determination Date or (b)
the period from and including the Payment Date occurring in March 2013 to
and excluding the Payment Date occurring in March 2014 following a
Series 2007-2 Second Extension Election and subject to the
satisfaction of all of the conditions required for such extension as of the
Second Extension Determination Date.

For purposes of this
Series Supplement, “IHOP
System-wide Sales” means retail sales during the fiscal year
preceding the First Extension Determination Date or the Second Extension
Determination Date, as the case may be, of IHOP Restaurants operated by
Franchisees, Area Licensees, and IHOP Corp or any Affiliate thereof.

(iv)    Any
notice given pursuant to Section 6.2(b)(i) or (ii) of this
Series Supplement shall be irrevocable; provided that if the conditions
set forth in this Section 6.2(b)(iii) are not met by the applicable
date, the election set forth in such notice shall automatically be deemed
ineffective.

(v)     Pursuant
to and in accordance with the Insurance Policy and Premium Letter, in
connection with the Series 2007-2 Notes, any such extension will
result in an

 7
 

 

increase in premium as set forth in the
Premium Letter (as defined below) in connection with the Series 2007-2
Notes.

(c)           Series 2007-2 Notes
Mandatory Payments of Principal.  The Series 2007-2 Notes
shall be subject to Mandatory Redemption as provided under Section 9.1 of
the Base Indenture.

(d)           Series 2007-2 Notices
of Final Payment.  The Co-Issuers
shall notify the Indenture Trustee, the Administrative Agent, the Series
Insurer and the Rating Agencies on or before the Record Date preceding the
Payment Date which will be the Series 2007-2 Anticipated Repayment
Date; provided, however, that with respect to any final payment
that is made in connection with any mandatory or optional redemption in full,
the Co-Issuers shall not be obligated to provide any additional notice to
the Indenture Trustee, the Administrative Agent, the Series Insurer or the
Rating Agencies of such final payment beyond the notice required to be given in
connection with such redemption under Article IX of the Base Indenture.  The Indenture Trustee shall provide written
notice to each person in whose name a Series 2007-2 Note is
registered at the close of business on such Record Date that the immediately
succeeding Payment Date will be the Series 2007-2 Anticipated
Repayment Date.  Such written notice to
be sent to the Series 2007-2 Noteholders shall be made at the
expense of the Co-Issuers and shall be mailed by the Indenture Trustee
within five (5) Business Days of receipt of notice from the Co-Issuers
indicating that the final payment will be made and shall specify that such
final payment will be payable only upon presentation and surrender of the
Series 2007-2 Notes and shall specify the place where the
Series 2007-2 Notes may be presented and surrendered for such final
payment.

Section 6.3             Other Principal Terms of the
Series 2007-2 Variable Funding Notes.  The Series 2007-2 Notes shall have
the following Principal Terms:

(a)           Series Designation. 
Series 2007-2 Variable Funding Notes.

(b)           Initial Series Aggregate Principal Amount.  The
Initial Series Aggregate Outstanding Principal Amount for the Series 2007-2
Notes shall be $25,000,000.

(c)           Maximum
Series Aggregate Principal Amount. 
The maximum Aggregate Outstanding Principal Amount for the
Series 2007-2 Notes shall be $25,000,000.

(d)           Series
Insurance Premium Payable Amount. 
The Series Insurance Premium Payable Amount for Series 2007-2
Notes shall be as set forth in the Premium Letter, dated as of the Closing
Date, between the Co-Issuers and the Series Insurer.

(e)           Series
Specific Accounts Established Pursuant to Article X of the Base Indenture:

(i)       Series 2007-2
Interest Payment Account;

(ii)      Series 2007-2
Principal Payment Account;

(iii)     Series 2007-2
Interest Reserve Account;

 8
 

 

(iv)    Series 2007-2
Trigger Reserve Account; and

(v)     Series 2007-2
Fee Payment Account.

(f)            Series Insurer Optional Redemption Make-Whole Amount.  The
Insurer Optional Redemption Make-Whole Amount relating to the Series 2007-2
Notes shall be as specified in the Premium Letter, dated as of the Closing
Date, among the Co-Issuers and the Series Insurer.

(g)           Series Initial Interest Reserve Deposit Amount.  $16,145.33 shall be deposited on the Closing
Date to the Series 2007-2 Note Interest Reserve Account.

(h)           Undrawn Facility Fee Reserve.  For purposes of the Series 2007-2
Notes, on each Payment Date, the Indenture Trustee shall pay any Undrawn
Facility Fee accrued and payable under the Series 2007-2 Note Purchase
Agreement, first, from available funds on deposit
in the Series 2007-2 Fee Payment Account, and, second,
to the extent that available funds on deposit in the Series 2007-2 Fee
Payment Account are insufficient for such payment, from the funds deposited in
respect of the Undrawn Facility Fee in the Series 2007-2 Interest Reserve
Account. Funds deposited in respect of the Undrawn Facility Fee to the Series
2007-2 Interest Reserve Account shall be unavailable for the payment of any
Series Interest Payment Amount or Senior Series Insurer Premium Payable Amount
relating to the Series 2007-2 Notes.

(i)            Series Interest Reserve Account Required Amount.  With respect to the Series 2007-2 Notes
on each Payment Date and subsequent Weekly Allocation Date up to the next
Payment Date, (A) if the Series Debt Service Coverage Ratio determined as
of each of the three preceding Accounting Dates is equal to or greater than
2.25x, the Series Interest Reserve Account Required Amount shall be
(i) the aggregate amount, without duplication, of the Estimated Daily
Reserve Interest Amount for each day of the next Interest Accrual Period plus (ii) the Estimated Daily Reserve Undrawn Facility
Fee Amount for each day of the next Interest Accrual Period plus (iii) the Series Insurer Premium Payable Amount
with respect to the Series 2007-2 Notes on the next Payment Date or
(B) if the Series Debt Service Coverage Ratio determined as of the as of
any of the three preceding Accounting Dates is less than 2.25x, the Series
Interest Reserve Account Required Amount shall be the product
of (i) three (3) and (ii) the amount determined in accordance with
(A).

For purposes of this
Series Supplement, “Estimated
Daily Reserve Interest Amount” means (a) for any day
during the first Interest Accrual Period, $0, (b) for any day during the
second Interest Accrual Period, $0 and (c) for any day during each
subsequent other Interest Accrual Period, the average of the Daily Reserve
Interest Amount for each day during the most recent prior two consecutive
Interest Accrual Periods.

For purposes of this
Series Supplement, “Daily Reserve
Interest Amount” means, for any day during any Interest
Accrual Period, the sum of the following amounts:

(i)       with
respect to any Eurodollar Advance outstanding on such day, the result of
(i) the product of (x) the
Eurodollar Rate in effect for such Interest Period and (y) the principal
amount of such Advance outstanding as of the close of business on such day divided by (ii) 360; plus

 9
 

 

(ii)      with
respect to any Base Rate Advance outstanding on such day, the result of
(i) the product of (x) the Base Rate
in effect for such day and (y) the principal amount of such Advance
outstanding as of the close of business on such day divided by
(ii) 365 or 366, as applicable; plus

(iii)     with
respect to any CP Advance outstanding on such day, the result of (i) the product of (x) the lesser of (A) the CP Rate in
effect for such Interest Period and (B) the Eurodollar Rate that would be
in effect for such Interest Period if such Advance were a Eurodollar Advance
and (y) the principal amount of such Advance outstanding as of the close
of business on such day divided by
(ii) 360.

For purposes of this
Series Supplement, “Estimated
Daily Reserve Undrawn Facility Fee Amount” means (a) for
any day during the first Interest Accrual Period, $171.61, (b) for any day
during the second Interest Accrual Period, $171.61 and (c) for any day
during each subsequent other Interest Accrual Period, the average of the Daily
Reserve Undrawn Facility Fee Amount for each day during the most recent prior
two consecutive Interest Accrual Periods.

For purposes of this
Series Supplement, the “Daily
Reserve Undrawn Facility Fee Amount” means the (a) product of (i) 0.15% and (ii) the excess of
(A) 100% of the Maximum Investor Group Principal Amount (as defined in the
Series 2007-2 Note Purchase Agreement) for the related Investor Group (as
defined in the Series 2007-2 Note Purchase Agreement) over (B) 100%
of the daily average Investor Group Principal Amount  (as defined for purposes of the Series 2007-2
Note Purchase Agreement) for the related Investor Group during the related
Interest Accrual Period, divided by
(b) 360.

(j)            Series Additional Interest Amount.  Any Series 2007-2
Monthly Contingent Extension Period Additional Interest and Series 2007-2
Monthly Post-ARD Contingent Additional Interest shall be deemed a Series
Additional Interest Amount as specified in Section 6.1(c).

(k)           Series Legal Final Maturity Date.  The Payment Date in March  2037.

(l)            Series 2007-2 Notes rank pari passu
as to principal and interest with Series 2007-1 Notes and will at
all times rank no less than pari passu as
to principal and interest of any other Series of Notes.

(m)          Series Minimum Debt Service Coverage Ratio.  The Series Minimum Debt Service Coverage
Ratio applicable to the Series 2007-2 Notes shall be 1.50x.

(n)           Series IHOP Corp. Consolidated Ratio Threshold.  The Series IHOP Corp. Consolidated Ratio
Threshold applicable to the Series 2007-2 Notes shall be 7.00x.

(o)           Series Trigger Reserve Proportion and Related Series
DSCR Trigger Reserve Account Deposit Threshold Range.  On each Payment Date, (A) a Series
Trigger Reserve Proportion of 40% shall be applicable if the Series Debt
Service Coverage Ratio determined as of the immediately preceding Accounting
Date is less than 1.85x and greater or equal to 1.65x, and (B) a Series
Trigger Reserve Proportion of 80% shall be applicable if the

 10
 

 

Series Debt Service Coverage Ratio determined
as of the immediately preceding Accounting Date is less than 1.65x.

(p)           Series Trigger Reserve Release Event.  With respect to any Payment Date that occurs
during a Series Trigger Reserve Period, a Series Trigger Reserve Release Event
relating to the Series 2007-2 Notes shall occur if
(A) (i) the least of the Series Debt Service Coverage Ratios relating
to the Series 2007-2 Notes as was determined as of each of the
preceding three Accounting Dates is greater than or equal to 1.65x and
(ii) the Series Debt Service Coverage Ratio relating to the
Series 2007-2 Notes as was determined as of the fourth preceding
Accounting Date was less than 1.65x or (B) (i) the least of the
Series Debt Service Coverage Ratios relating to the Series 2007-2
Notes as was determined as of each of the three Accounting Dates is greater
than or equal to 1.85x and (ii) the Series Debt Service Coverage relating
to the Series 2007-2 Notes as was determined as of the fourth
preceding Accounting Date was less than 1.85x; provided, that no Series
Trigger Reserve Release Event relating to the Series 2007-2 Notes
shall occur prior to the Payment Date occurring in September 2007], or if a
Default, Event of Default, Servicer Termination Event or a Mandatory Redemption
Event relating to the Series 2007-2 is continuing.

(q)           Series Trigger Reserve Release Amount.  The Series Trigger Reserve Release Amount
shall be equal to the amount, if any, by which (a) the aggregate amount
then on deposit in the Trigger Reserve Account relating to the Series 2007-2
Notes exceeds (b) the Release Ratio Amount.

For purposes of this
Series Supplement, the Release
Ratio Amount is the amount of funds that would have been
deposited to the Series 2007-2 Trigger Reserve Account during a
Series Trigger Reserve Period had the Series Debt Service Coverage Ratio during
such Series Trigger Reserve Period been equal to the least of the Series Debt
Service Coverage Ratios relating to the Series 2007-2 Notes as was
determined as of any of the immediately preceding three Accounting Dates,
following a Series Trigger Reserve Release Event.

For purposes of this Series
Supplement, “Series Trigger
Reserve Period” means a period that commences on the first
Accounting Date on which the Series Average Debt Service Coverage Ratio with
respect to the Series 2007-2 Notes is less than 1.85x and ending on
the first subsequent Accounting Date on which the Series Debt Service Coverage
Ratio determined as of such Accounting Date and the immediately preceding two
Accounting Dates is equal to or greater than 1.85x.

(r)            Series Interest Reserve Release Event.  On any Payment Date with respect to the
Series 2007-2 Interest Reserve, a Series Interest Reserve Release
Event occurs when the amount on deposit in the Series 2007-2
Interest Reserve Account is greater than the Series Interest Reserve Required
Amount applicable to the Series 2007-2 Notes; provided,
that no Series Interest Reserve Release Event relating to the Series 2007-2
Notes shall occur prior to the Payment Date occurring in September 2007, or if
a Servicer Termination Event, Default, Event of Default or a Mandatory Redemption
Event relating to the Series 2007-2 is continuing.

 11
 

 

(s)           Series Interest Reserve Release Amount.  The Series Interest Reserve Release Amount
shall be the excess of the amount on deposit in the Series 2007-2
Interest Reserve Account over the Series Interest Reserve Account Required
Amount.

(t)            Additional Issuance Series DSCR Threshold.  The Additional Issuance Series DSCR Threshold
applicable to the Series 2007-2 Notes shall be 2.50x.

(u)           Defective Asset Payment Series DSCR Threshold.  The Defective Asset Payment Series DSCR
Threshold applicable to Series 2007-2 Notes shall be 3.50x.

(v)           STE Series DSCR Threshold.  The STE Series DSCR Threshold applicable to
the Series 2007-2 Notes shall be 1.25x

(w)          EOD Series DSCR Threshold.  The EOD Series DSCR Threshold applicable to
the Series 2007-2 Notes shall be 1.25x.

(x)            Unhedged Floating Rate Principal Limit.  The Unhedged Floating Rate Principal Limit
applicable with respect to the Series 2007-2 Notes shall be
$50,000,000.

(y)           Use of Advance Proceeds. The proceeds of any
advance shall not be used by the Co-Issuers to make payment on the Aggregate
Outstanding Principal Amount of any Series of Notes.

(z)            Other Provisions. 
Payment of interest (but not any Overdue Interest relating to the
Series 2007-2 Notes, Series 2007-2 Monthly Extension
Period Contingent Additional Interest Amount or Series 2007-2
Monthly Post-ARD Contingent Additional Interest Amount or any other similar
amounts above the Series Interest Payment Amount relating to the Series 2007-2
Notes) on the Series 2007-2 Notes when due and the full payment of
principal of the Series 2007-2 Notes at the Legal Final Maturity
Date is guaranteed by the Series Insurer pursuant to and in accordance with the
Insurance Policy and the Insurance Agreement.

ARTICLE
VII

RATIFICATION AND INCORPORATION OF BASE INDENTURE

Except and so far as
otherwise expressly provided herein, all of the provisions, terms and
conditions of the Base Indenture are in all respects ratified and confirmed,
and hereby incorporated by reference; and the Indenture as so incorporated and
modified by this Series Supplement shall be taken, read and construed together
with this Series Supplement as one and the same instrument.

ARTICLE
VIII

FORM OF NOTES

The form of the
Series 2007-2 Notes, including the Certificate of Authentication, shall be
substantially as set forth as Exhibits A to this Series Supplement, with
such appropriate

 12
 

 

insertions, omissions,
substitutions and other variations as are required or permitted by the Base
Indenture or this Series Supplement, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon,
as may be consistent herewith, determined by the Authorized Officers of the Co-Issuers
executing such Notes as evidenced by their execution of such Notes.

The Certificates
evidencing the Series 2007-2 will bear legends to the following effect
unless the co-issuers determine otherwise in compliance of applicable law.

THIS SERIES 2007-2
VARIABLE FUNDING NOTE (THIS “NOTE”), HAS NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER RELEVANT
JURISDICTION, AND NEITHER OF IHOP FRANCHISING, LLC OR IHOP IP, LLC (THE “CO-ISSUERS”)
HAS BEEN REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT
COMPANY ACT”).  THIS NOTE AND ANY
INTEREST HEREIN MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY TO
PERSONS WHO ARE NOT COMPETITORS (AS DEFINED IN THE INDENTURE), UNLESS THE
CO-ISSUERS GIVE WRITTEN CONSENT TO SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER,
AND IN ACCORDANCE WITH THE PROVISIONS OF THE SERIES 2007-2 NOTE PURCHASE
AGREEMENT, DATED AS OF MARCH 16, 2007 BY AND AMONG THE CO-ISSUERS,
INTERNATIONAL HOUSE OF PANCAKES, INC., AS THE SERVICER, THE COMMITTED NOTE
PURCHASER AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS INDENTURE TRUSTEE AND
ADMINISTRATIVE AGENT.

ARTICLE
IX

GOVERNING LAW

THIS SERIES SUPPLEMENT
AND EACH OF THE SERIES 2007-2 NOTES SHALL BE GOVERNED BY THE INTERNAL LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CHOICE OF LAW RULES (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

ARTICLE X

EXECUTION IN COUNTERPARTS; EFFECTIVE TIME

This
Series Supplement may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.  This Series Supplement shall become effective
upon the execution of a counterpart hereof by the Issuer, the Indenture Trustee and the Series
Insurer.

 13
 

 

ARTICLE
XI

MODIFICATION
OF THE SERIES SUPPLEMENT

This Series Supplement
may not be modified except by a writing executed by all parties hereto.

 

 14

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

 

	
  

  	
  IHOP FRANCHISING, LLC, as Issuer

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   Mark D. Weisberger

  
	
   

  	
   

  	
  Name: Mark D. Weisberger

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  IHOP IP, LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Thomas G. Conforti

  
	
   

  	
   

  	
  Name: Thomas G. Conforti

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual
  capacity, but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Benjamin J. Krueger

  
	
   

  	
   

  	
  Name: Benjamin J. Krueger

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  FINANCIAL
  GUARANTY INSURANCE COMPANY, as Series Insurer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Derek Donnelly

  
	
   

  	
   

  	
  Name: Derek Donnelly

  
	
   

  	
   

  	
  Title: Director

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