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Exhibit 10.318    
  

***Certain
information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.  

  
 

    AMENDMENT NO. 3 TO
  AGREEMENT    
  

        This Amendment No. 3 ("Amendment No. 3") is entered effective April 1, 2002 (the
"Amendment Effective Date") pursuant to and amending that certain Agreement (as defined below) between Gen-Probe Incorporated, a Delaware
corporation ("Gen-Probe") and Chiron Corporation, a Delaware corporation ("Chiron"), on
behalf of itself and its Affiliates. Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement. 

 
 

Recitals    
  

        A.
The parties entered into the Agreement as of June 11, 1998 pursuant to which, among other things, the parties described their respective rights and obligations with respect to
production planning and
inventory management processes. The Agreement was amended by the following: (i) June 11, 1998 Collaboration Agreement, (ii) June 11, 1998 Supplemental letter agreement,
(iii) June 26, 1998 Addendum to Collaboration Agreement, (iv) June 30, 1998 Supplemental letter agreement, (v) June 30, 1998 Consent,
(vi) December 1, 1998 letter agreement re American Red Cross revenues, (vii) December 7, 1999 First amendment to Collaboration Agreement, (viii) February 1,
2000 Second amendment to Collaboration Agreement, (ix) June 7, 2001 Supplemental agreement no. 1 (Customer training and Support), (x) October 30, 2001
Confidentiality and Joint Interest Agreement, (xi) April 4, 2001 Agreement re Arbitration. In addition, the parties entered into that certain Definitive Written Settlement Agreement
dated December 4, 2001 (the "Settlement Agreement"). 

        B.
The parties have discussed a proposed revision to and clarification of their respective rights and obligations with respect to production planning and inventory management processes,
and have agreed to make certain additional changes to the Agreement in connection therewith, in accordance with the provisions of this Amendment No. 3. 

        C.
By this Amendment No. 3, the parties desire to revise and clarify their respective rights and obligations, as described herein, applicable to all Blood Screening Assays,
including one or more Future Blood Screening Assays to be conducted by the Blood Screening Instruments to be developed under the terms of the Agreement. 

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Agreement    
  

        NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth in this Amendment No. 3, the parties agree as follows: 

        1.    Definitions.    

        1.1  "Agreement" means that certain Agreement entered into as of June 11, 1998 by and between Gen-Probe
Incorporated, a Delaware corporation with a principal place of business at 10210 Genetic Center Drive, San Diego CA 92121 and Chiron Corporation, a Delaware corporation, with a place of business at
4560 Horton Street, Emeryville, CA 94608, on behalf of itself and its Affiliates, as amended by the amendments referenced in Recital A above. 

        1.2  "Settlement Agreement" means that certain Definitive Written Settlement Agreement dated December 5, 2001 executed
by and between Chiron Corporation and Gen-Probe Incorporated. 

        1.3  "Supplemental Agreement" means that certain Supplemental Agreement No. 2 dated December 5, 2001 executed by
and between Chiron Corporation and Gen-Probe Incorporated. 

        1.4    The
following definitions shall be added to the Agreement, for the purpose of the amendments made by this Amendment No. 3, by adding the following subsections to
Section 1 of the Agreement: 

        "1.60  "Customer" means the Third Party to whom Blood Screening Assays are sold, transferred or otherwise
conveyed by Chiron, its Affiliates or the Major Distributor. 

        1.61 "Forecast" means the twelve-month rolling forecast of Chiron's estimated purchase requirements of Blood Screening Assays
over the period covered by the forecast, as set forth in Section 6.3.1 of the Agreement, as amended pursuant to this Amendment No. 3. 

        1.62 "Lot" means each of Gen-Probe's manufacturing lots of Blood Screening Assays. 

        1.63 "Purchase Order" means the binding purchase order of Blood Screening Assays delivered in accordance with the provisions
of Section 6.3.3 of the Agreement, as amended pursuant to this Amendment No. 3." 

        2.    Forecasts And Orders.    Section 6.3 of the Agreement and its associated
subsections are hereby deleted and replaced in their entirety with the following: 

        "6.3 Forecasts and Orders. 

        6.3.1    Forecasts.

        (a)  On
or before the first (1st) day of each calendar month during the term of this Agreement, Chiron shall provide to Gen-Probe a Forecast, covering the period
commencing the calendar month immediately succeeding the month in which the Forecast is delivered (for example, on January 1, Chiron will deliver a rolling twelve (12) month Forecast
commencing February 1), showing Chiron's estimated purchase requirements over the period covered by the Forecast. The Forecast shall include purchase requirements, at the following level of
detail: 

        (i)    for
the first (1st), second (2nd) and third (3rd) calendar months covered by the Forecast, the Forecast shall specify the Blood Screening Assays by packaging
configuration, including kit size and/or catalogue part number, and associated quantities for purchase from Gen-Probe by Chiron in such three-month period; 

        (ii)    for
the fourth (4th), fifth (5th) and sixth (6th) calendar months covered by the Forecast, the Forecast shall specify the Blood Screening Assays and ancillary 

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materials, by labeling requirement detailed according to the provisions of Schedule A.1, attached hereto, and associated quantities that Chiron
expects to order from Gen-Probe by Chiron in such period; and 

        (iii)    for
the seventh (7th) through twelfth (12th) calendar months covered by the Forecast, the Forecast shall specify the estimated purchase requirements, by test, and
associated quantities that Chiron expects to order from Gen-Probe by Chiron in such period. 

        (iv)    Subject
to the additional provisions set forth in subparagraph (v) below, in each Forecast delivered, Chiron may not  (A) amend the quantities of Blood Screening Assays from the quantities specified
for the first (1st), second (2nd) and third (3rd) calendar months in the immediately
preceding Forecast; (B) amend the quantities of Blood Screening Assays specified in the Forecast for the fourth (4th), fifth (5th) and sixth (6th) calendar months in the immediately preceding
Forecast to an amount that is less than [***] nor more than [***] of the amount forecasted when the month being amended was the sixth (6th) calendar
month; (C) amend the quantities of Blood Screening Assays specified in the Forecast for the seventh (7th) calendar month in the immediately preceding Forecast as it transitions to the sixth
(6th) calendar month in the delivered Forecast to an amount that is less than [***] nor more than [***] of the quantity of Blood Screening Assays
specified in the previous Forecast when the month in question was the seventh (7th) calendar month; or (D) amend the quantities of Blood Screening Assays specified in the Forecast for the
eighth (8th) calendar month in the immediately preceding Forecast as it transitions to the seventh (7th) calendar month in the delivered Forecast to an amount that is less than
[***] nor more than [***] of the quantity of Blood Screening Assays specified in the previous Forecast when the month in question was the eighth (8th)
calendar month. For example, on January 1, Chiron will deliver a Forecast in which February is the first (1st) calendar month and September is the eighth (8th) calendar month of the Forecast.
If Chiron estimates in such Forecast that in August, the seventh (7th) calendar month, it will require [***] tests, Chiron may not decrease its Forecast below
[***] tests nor increase it above [***] tests as that month transitions to the sixth (6th) calendar month in the next Forecast. Similarly, if Chiron
estimates in a Forecast that in September, the eighth (8th) calendar month, it will require [***] tests, then in the subsequent Forecast Chiron may not decrease its Forecast
below [***] tests nor increase it above [***] tests when that month transitions to the seventh (7th) calendar month. For purpose of the convenience of
reference hereafter, the Forecast delivered in which the applicable calendar month is the eighth (8th) month is referred to as the "original Forecast"; and the quantity as forecast in any subsequent
Forecast, amended as permitted under this Section (i.e. the Forecast delivered in which the applicable month transitions to the next lower month, such as from the eighth (8th) month to the seventh
(7th)), is referred to as the "amended Forecast." 

        (v)    Notwithstanding
the provisions of subparagraph (iv) above, the parties acknowledge that Gen-Probe incurs substantial expense ramping up production and
otherwise preparing to meet quantities forecasted by Chiron, even in periods commencing the seventh (7th) calendar month and beyond in the then-current Forecast. Therefore, the parties
agree that Chiron may not reduce the Forecast down under subparagraph (iv)(B) and (C), above, in the
aggregate to an amount that is less than [***] of the highest quantity of Blood Screening Assays specified in any Forecast. (For example, on January 1, Chiron will
deliver a Forecast in which 

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February 1 is the first (1st) month and September is the eighth (8th) month of the Forecast. If Chiron estimates in such Forecast that in September it will require
[***] tests, then Chiron may not amend the Forecast, at any time or in the aggregate, to an amount that is less than [***] tests deliverable in
September. In addition, if, in the subsequent Forecast when the month in question transitions from the eighth (8th) to the seventh (7th) month, Chiron increases the Forecast of the month in question
from [***] tests to [***] tests, then Chiron may not amend the Forecast to an amount that is less than [***] tests deliverable
in September (i.e. [***]). Similarly, if in the next Forecast, when the month in question transitions from the seventh (7th) to the sixth (6th) month, Chiron further increases
the Forecast to [***] tests, then Chiron may not amend the Forecast to an amount that is less than [***] tests deliverable in September (i.e.
[***]).) 

        (b)    Commencing
in the first full month following the Amendment Effective Date, the parties shall meet monthly, on or before the twenty-second (22nd) day of each calendar
month, to review the previous month's performance and the current Forecast and production plan for the purpose of making production planning and inventory management decisions necessary to meet
Customer supply needs in a cost-efficient manner. Such production planning meetings shall be attended by qualified members of each party, and shall be sponsored by Chiron's Director of
Global Supply Chain Management and Gen-Probe's Vice-President of Manufacturing—Blood Products. The parties shall implement a standing agenda in the form set forth
in Schedule A.2, attached hereto, and may consider such additional information as is agreed upon by both parties. 

        (c)    In
the event that any disagreement arises between the parties pursuant to the obligations imposed in this Section 6.3.1, the parties shall submit such dispute
first to a discussion between responsible managers, and if they cannot agree, then to the Supervisory Board for resolution as soon as is reasonably achievable. In the event that the Supervisory Board
is (i) unable to resolve the issue at its next meeting, or (ii) is unable or unwilling to meet within the thirty (30) day period after submittal of the issue to the Supervisory
Board, then the issue shall be referred by the parties for resolution in accordance with the terms of Article 13 herein. 

        6.3.2    Purchase Obligation. 

        (a)  Chiron
shall be required to purchase, in the respective month, the quantity of Blood Screening Assays, by part number, specified in each Forecast for the first (1st),
second (2nd) and third (3rd) calendar months covered by each Forecast. If any Forecast fails to conform to with the provisions of Section 6.3.1, considered in the aggregate, then for purposes
of determining Chiron's purchase
obligation under this Section 6.3.2(a) such non-conforming Forecast shall be revised to comply with such provisions of Section 6.3.1. 

        (b)  Notwithstanding
anything in this Agreement to the contrary, the expiration or sooner termination of this Agreement, other than a termination by Chiron for default of
Gen-Probe in accordance with the provisions of Section 11.2.1 and subject to the provisions of Section 15.2 governing force majeure events, shall not operate to extinguish
Chiron's obligation to purchase the quantity of Blood Screening Assays specified in accordance with Section 6.3.1 through the eighth (8th) calendar month covered by the Forecast in effect as of
the effective date of expiration or sooner termination. 

        (c)  In
the event that any disagreement arises between the parties pursuant to the obligations imposed in this Section 6.3.2, the parties shall submit such dispute
first to a discussion between responsible managers, and if they cannot agree, then to the Supervisory Board for resolution as soon as is reasonably achievable. In the event that the 

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Supervisory Board is (i) unable to resolve the issue at its next meeting, or (ii) is unable or unwilling to meet within the thirty (30) day period after submittal of the issue to
the Supervisory Board, then the issue shall be referred by the parties for resolution in accordance with the terms of Article 13 herein. 

        6.3.3    Purchase Orders. 

        (a)  Chiron
shall submit to Gen-Probe a binding Purchase Order on or before the fifth (5th) day of each calendar month during the term hereof covering the Blood
Screening Assays forecasted by Chiron for the third (3rd) calendar month covered by the then-current Forecast (for example, on January 5, Chiron will submit a Purchase Order for
Blood Screening Assays to be delivered in April). Each Purchase Order shall be in writing and reasonably similar to the sample Purchase Order attached hereto as  Schedule A.3. Each Purchase Order
shall specify the quantity of Blood Screening Assays ordered (by packaging configuration, including kit size
and/or catalogue part number), the place of delivery, the requested delivery date, and such other information as Gen-Probe reasonably requests. Chiron may not request a delivery date for
any Blood Screening Assays that is less than eighty-five (85) days or more than ninety-five (95) days after the date of the applicable Purchase Order (for
example, a Purchase Order submitted to Gen-Probe on January 5 may only specify a delivery date between the first and the tenth of April). 

        (b)  Purchase
Orders submitted to Gen-Probe by Chiron shall be binding on Gen-Probe as to that quantity of Blood Screening Assays set forth in the
then-current Forecast for such calendar month. If the quantity of any Blood Screening Assays ordered by Chiron for any calendar month exceeds the quantity of such Blood Screening Assays
set forth in the then-current Forecast for such month, then Gen-Probe shall use Commercially Reasonable Efforts to deliver the amount of Blood Screening Assays in excess of the
forecasted amount. Gen-Probe shall provide Chiron with written notice of the anticipated delivery date for such additional Blood Screening Assays. 

        (c)  In
the event that any Purchase Order received from Chiron herein fails to order Blood Screening Assays of the types and in the amounts specified in the
then-current Forecast for the applicable calendar month, Gen-Probe shall have the right to reject such Purchase Order(s). Gen-Probe shall notify Chiron in writing
within ten (10) days of receipt of such Purchase Order(s). If not rejected by Gen-Probe within ten (10) days of receipt, such Purchase Order(s) shall be deemed accepted by
Gen-Probe. In the event that Gen-Probe rejects a purchase order Chiron shall have 5 days to correct the purchase order and resubmit it to Gen-Probe. 

        (d)  In
the event that any disagreement arises between the parties pursuant to the obligations imposed in this Section 6.3.3, the parties shall submit such dispute
first to a discussion between responsible managers, and if they cannot agree, then to the Supervisory Board for resolution as soon as is reasonably achievable. In the event that the Supervisory Board
is (i) unable to resolve the issue at its next meeting, or (ii) is unable or unwilling to meet within the thirty (30) day period after submittal of the issue to the Supervisory
Board, then the issue shall be referred by the parties for resolution in accordance with the terms of Article 13 herein. 

        (e)  In
the event of a conflict between the terms and conditions of any Purchase Order and this Agreement, the terms and conditions of this Agreement shall prevail. 

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        6.3.4    Inventory. 

        (a)  The
parties agree that the amount of inventory sufficient to ensure uninterrupted testing by Customers in the event of a disruption of supply of Blood Screening Assays
from Gen-Probe is a minimum of (5) months' forward demand for such Blood Screening Assays, as determined by the most current Forecast. Accordingly, Chiron shall purchase and
maintain a minimum of a five (5) months inventory of Blood Screening Assays based on the latest Chiron Forecast. The five (5) months inventory will be maintained at Chiron's warehousing
facilities (which facilities are set forth in Schedule A.4 attached hereto). As Chiron develops greater visibility of customer inventory, Chiron
has the right to reduce its inventory by including the inventory held at the customer sites. However, Chiron must ensure that the inventory level held by Chiron (taking into account up to
five months' inventory that Chiron can show is held by each customer) is sufficient to always supply each customer with a minimum of 5 months' supply. Prior to reducing their inventory,
Chiron must submit their inventory plan to the Supervisory Board for review and approval. 

        (b)  Notwithstanding
the foregoing, Gen-Probe shall maintain sufficient inventory of raw materials and work in progress as necessary to meet the production
requirements for Chiron's commitments for the first through eighth months of Chiron's most current Forecast. 

        (c)  Each
party shall give an independent certified public accounting firm selected by the other party access to the applicable records (and the applicable records of any
Affiliate or Major Distributor) for the purpose of permitting the audit, at the auditing party's expense and in accordance with Section 7.3 of this Agreement, of compliance with this
Section 6.3.4. 

        6.3.5    Supply Obligation. 

        (a)  Gen-Probe
shall be required to supply in any given month the quantity of Blood Screening Assays ordered by Chiron pursuant to a Purchase Order as to that
quantity of Blood Screening Assays set forth in the then-current Forecast for such month, as the forecasted demand may be amended as permitted in Section 6.3.1(a)(iv) above.
If Gen-Probe becomes aware of any fact indicating that Gen-Probe may be unable to meet Chiron's forecasted demand as specified in the original Forecast as to any Blood
Screening Assay or indicating that Gen-Probe may be unable to meet Chiron's forecasted demand as specified in an amended Forecast permitted under Section 6.3.1(a)(iv),
Gen-Probe shall promptly provide written notice of such fact to Chiron's Director of Global Supply Chain Management and Gen-Probe's Vice-President of
Manufacturing—Blood Products. Chiron's Director of Global Supply Chain Management and Gen-Probe's Vice-President of Manufacturing—Blood Products shall
meet and attempt to agree upon a resolution, including exploring ways to meet such increased demand. If the parties cannot agree on such a resolution, then the issue will be referred to the
Supervisory Board for resolution no later than the latter of (i) thirty (30) days after such referral, or (ii) the next regularly scheduled Supervisory Board meeting. If the
Supervisory Board fails to resolve the issue, the parties may invoke the provisions of Article 13 herein. The failure of Gen-Probe to supply that quantity of Blood Screening Assays
in a Chiron Purchase Order in excess of Chiron's forecasted demand as specified in the then-current Forecast or amended Forecast, as permitted under Section 6.3.1(a)(iv) for
such month, shall not trigger the Chiron manufacturing rights set forth in Section 3.2.4(b) of the Agreement. 

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        (b)  Gen-Probe
shall ensure that the expiration date for Blood Screening Assays supplied to Chiron shall be no earlier than (i) eleven (11) months
after the date of delivery into warehouse inventory if designated for export; and (ii) eight (8) months after the date of delivery into warehouse inventory if designated for delivery in
the United States. This provision only applies to Lots of Blood Screening Assays manufactured after the Amendment Effective Date (i.e., Lot 13 and beyond). 

        (c)  The
minimum expiration dating requirement set forth in Section 6.3.5(b) exclude [***] and [***]. The parties will
set dating requirements for these products on or prior to June 30, 2002. 

        6.3.6    Warehouse/Distribution Support for Order Processing. During the term that Gen-Probe provides
warehousing support under Section 6.4.4 of this Agreement, Gen-Probe will provide reasonable staff support to Chiron, such staff to be responsible for order packing and processing
in connection with the
sales of Blood Screening Assays by Chiron. As of the Amendment Effective Date, such support is estimated to be [***]. Changes to the number of Gen-Probe
full-time equivalent employees necessary to support order packing and processing shall have no effect on this Agreement, but Gen-Probe will give Chiron reasonable notice of
such changes. Such employee(s) shall be responsible for (i) completing order processing (including order packing and confirmations of shipment to Chiron), (ii) maintaining files for
special customer requirements, if any, and a history of shipments for Chiron, (iii) maintaining familiarity with part numbers and master lot requirements for Blood Screening Assays, and
(iv) communicating regularly with Chiron on Purchase Orders and shipments, recording/reporting status of shipments, problem fact finding, and resolution of order and/or shipment problems." 

        3.    Delivery. Section 6.4.1 of the Agreement is hereby deleted and replaced in its entirety by
the following: 

        "6.4.1    Delivery. 

        (a)  For
so long as Gen-Probe provides the warehousing support under Section 6.4.4, all Blood Screening Assays purchased by Chiron under this Agreement
shall be transferred to the warehouse location more particularly described in Section 6.4.4 without shipping charges to Chiron. Chiron shall be responsible for the cost of shipment out of such
warehouse facility to any other location, including to Chiron Customers. 

        (b)  At
such time as Gen-Probe no longer provides the warehousing support under Section 6.4.4, all Blood Screening Assays purchased by Chiron under this
Agreement shall be shipped f.o.b. place of manufacture to such location as designated by Chiron in the applicable Purchase Order. Chiron shall have the right to select the carrier. 

        (c)  Chiron
shall be responsible for all freight, insurance charges, taxes, import and export duties, inspection fees and other charges applicable to the sale and transport
of Blood Screening Assays purchased by Chiron (i) for transfer out of the warehouse to Customers, during the period that Gen-Probe provides the warehousing support under
Section 6.4.4 and (ii) to such location designated by Chiron in the applicable Purchase Order, at such time as Gen-Probe no longer provides the warehousing support under
Section 6.4.4. Gen-Probe shall, to the extent possible, charge such expenses to Chiron's carrier accounts or pre-pay such charges. When Gen-Probe
pre-pays such charges, it shall invoice such charges to Chiron in reasonable detail, specifying the Blood Screening Assays to which such charges apply. Chiron shall pay all such invoices
within thirty (30) days of date of invoice. 

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        (d)  When
Blood Screening Assays are shipped from the Gen-Probe warehouse, the dry ice fee of [***] for each shipping box containing
frozen material is a freight charge to be prepaid by Gen-Probe, and for which Gen-Probe shall invoice Chiron. The dry ice fee, as well as the other charges enumerated in
Sections 6.4.1(a) and (c) above shall be deducted from the gross sales price of Blood Screening Assays as set forth in Section 1.46 herein." 

        4.    Warehousing. The following new Section 6.4.4 is hereby added to the end of
Section 6.4 of the Agreement: 

        "6.4.4    Warehousing. 

        (a)  Gen-Probe
shall provide warehouse capability for Blood Screening Assays after sale to Chiron, in accordance with the provisions of this Section 6.4.4.
Chiron may notify Gen-Probe in writing at any time after June 30, 2002 or earlier upon the breach by Gen-Probe of any of its obligations under this Section 6.4.4,
of its intention to assume the warehousing function internally. Such notice shall indicate a date not less than 30 days after the date of such notice on which Chiron will assume the warehousing
function. Gen-Probe may notify Chiron in writing on or before November 1 of any year during the term hereof of its decision to terminate its provision of the warehouse capabilities
described in this Section 6.4.4 and inventory management described in Section 6.4.5, effective January 1 of the immediately succeeding year." 

        (b)  Gen-Probe
shall provide adequate warehouse storage at its Willow Court facility for all Blood Screening Assays purchased by Chiron prior to delivery of such
Blood Screening Assays to Chiron or Chiron's Customer. Such storage services shall include, as applicable based on the type of Blood Screening Assay, frozen, refrigerated, and ambient physical storage
space. Gen-Probe shall maintain appropriate safety and security systems for such storage space, including monitoring of frozen and cold facilities and providing appropriate backup systems,
in accordance with applicable state and federal regulations. 

        (c)  Gen-Probe
shall maintain frozen inventoried Blood Screening Assays in core-packs, unless otherwise agreed by the parties in writing. 

        (d)  During
the period in which Gen-Probe is providing warehousing storage services to Chiron under this Section 6.4.4, Gen-Probe shall
segregate, as appropriate, any Blood Screening Assays being warehoused for Chiron pursuant to this Section 6.4.4 and identify such Blood Screening Assays as Chiron's property. Except as
otherwise permitted in this Agreement, Gen-Probe shall not, and shall not permit any third party to, sell, assign, pledge, encumber, dispose of, or suffer a lien or encumbrance upon or
against any interest in the Blood Screening Assays held by Gen-Probe pursuant to this Section 6.4.4. 

        (e)  Gen-Probe
shall provide Chiron with information regarding all transfers to Chiron, and Chiron shall track and maintain inventory in Chiron's accounting
system for all Blood Screening Assays held by Gen-Probe under this Section 6.4.4. The parties shall cooperate in good faith in the performance of a
periodic inventory reconciliation between Chiron's records and a physical count to be conducted on all Blood Screening Assays held by Gen-Probe pursuant to this Section 6.4.4. Such
reconciliation shall be conducted once every other month, unless otherwise agreed to by the parties in writing. In the event that such reconciliation identifies discrepancies, the parties shall
investigate in good faith the causes of such discrepancies. Each party shall rectify, at its expense, any discrepancies identified which result from such party's failure to act in accordance with the
terms of this Agreement or reasonable business practices. If a discrepancy cannot be attributed to either party, then Gen-Probe shall rectify such discrepancy at its expense. 

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        (f)    For
so long as Gen-Probe provides warehousing support under this Section 6.4.4 and for as long thereafter as necessary to cover claims resulting from
such warehousing support, Chiron shall maintain: (1) product liability and general commercial liability insurance having a limit of not less than[***]; and
(2) property damage insurance at replacement value for the Blood Screening Assays located at Gen-Probe's warehousing facility, pursuant to one or more insurance policies with
reputable insurance carriers. Chiron hereby waives subrogation for the benefit of Gen-Probe with respect to the physical loss of such Blood Screening Assays, except for losses due to the
negligence of Gen-Probe or a breach of Gen-Probe's obligations under this Section 6.4.4. Chiron shall not cause or permit such insurance to be cancelled or modified to
materially reduce its scope or limits of coverage for so long as Gen-Probe is providing warehousing support described in Section 6.4.4 or thereafter as provided above. 

        (g)  For
so long as Gen-Probe provides warehousing support under this Section 6.4.4 and for so long thereafter as necessary to cover claims resulting from
such warehousing support, Gen-Probe shall maintain commercial general liability insurance in the amount of [***], including bailee's legal liability, and Chiron
shall be designated as an "additional insured" as respects its rights under this Section 6.4.4. Gen-Probe shall maintain such other types of insurance, with appropriate limits of
liability, that are usual and customary for the nature of Gen-Probe's warehousing operations pursuant to this Section 6.4.4. Gen-Probe shall not cause or permit such
insurance to be cancelled or modified to materially reduce its scope or limits of coverage for so long as Gen-Probe is providing warehousing support described in Section 6.4.4 or
thereafter as provided above. 

        (h)  Chiron
shall be permitted reasonable access to Blood Screening Assays held by Gen-Probe pursuant to this Section 6.4.4 during Gen-Probe's
normal business hours and upon reasonable notice to Gen-Probe. Chiron shall retain the right to remove from Gen-Probe's warehouse facility all or any portion of the Blood
Screening Assays held by Gen-Probe pursuant to this Section 6.4.4, upon reasonable advance notice to Gen-Probe. 

        (i)    Gen-Probe
shall have the right to require Chiron to dispose of, or otherwise remove from Gen-Probe's warehousing facility, any and all Blood
Screening Assays stored by Gen-Probe pursuant to this Section 6.4.4 of which the expiration date has passed. 

        (j)    Except
for any losses resulting from the negligence of Gen-Probe or a breach of Gen-Probe's obligations under this Section 6.4.4, Chiron
shall bear all risk of loss or damage with respect to the Blood Screening Assays once purchased by Chiron, whether located at Gen-Probe's warehousing facility or elsewhere. 

        (k)  Gen-Probe
agreed in Supplemental Agreement to provide the warehouse capabilities described in this Section 6.4.4 and inventory management described in
Section 6.4.5 for a period commencing on January 1, 2001 through December 31, 2001, and further agreed in the Settlement Agreement to extend the provision of those services
through December 31, 2002, subject to the right of Gen-Probe to increase the charge for those services as limited by the CPI described in Section 6.4.5(e). 

        5.    Insurance Certificates.    

        5.1  Unless
previously provided to Gen-Probe by Chiron, concurrent with the execution of this Amendment No. 3, Chiron shall deliver to
Gen-Probe certificates evidencing the insurance referred to in Section 6.4.4(g) of the Agreement, as amended by this Amendment No. 3. 

        5.2  Unless
previously provided to Chiron by Gen-Probe, concurrent with the execution of this Amendment No. 3, Gen-Probe shall deliver to
Chiron certificates evidencing the insurance referred to in Section 6.4.4(h) of the Agreement, as amended by this Amendment No. 3. 

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        6.    Inventory Management. The following new Section 6.4.5 is hereby added to the end of
Section 6.4, following newly added Section 6.4.4: 

        "6.4.5    Inventory Management: For so long as Gen-Probe is providing the warehousing support services
described under Section 6.4.4, the following additional provisions shall apply: 

        (a)    Gen-Probe
will provide necessary staff support to Chiron, such staff to be responsible, as described below, for inventory management and shipping of Blood
Screening Assays from Gen-Probe's San Diego facilities as required under this Agreement. As of the Amendment Effective Date, such necessary staff is estimated to be
[***] employees. Changes in the number of full-time equivalent employees necessary to support inventory management shall have no effect on this Agreement, but
Gen-Probe will give Chiron reasonable notice of such changes. 

        (b)    Gen-Probe
shall, through the services of the support staff designated under Section 6.4.5(a) above, provide the following services to Chiron: 

        (i)    Inventory
management of all inventory, including reagents, Blood Screening Instruments and parts, packing and shipping materials, etc.; 

        (ii)    Packing
of kitted components, including verification of all kitted components to work order, transfer of kitted components into shipping containers, application of dry
ice, gel packs, etc. as required and final assembly and quality control of shipping containers; 

        (iii)    Arrangement
of and handling transfer to freight forwarders of all shipments of reagents, ancillaries (TTU, TTC, sealing cards, etc.) and Blood Screening Instruments,
using Chiron's carrier accounts for freight charges; 

        (iv)    Entry
of all appropriate system transactions to process shipments, including material issue transactions, printing and application of shipping labels and packing slips; 

        (v)    Completion
of shipping paperwork, including freight bills and/or SLI's, dangerous goods forms and maintenance of records; and 

        (vi)    Interaction
with carriers, including pre-arranging pick-ups, faxing of paperwork to carriers and Chiron to reserve appropriate space on flights,
loading carrier upon arrival, forwarding all paperwork to appropriate finance and record-keeping personnel, performing any post-shipment follow-up to ensure timely delivery,
informing interested parties of results, and investigating any post-shipment problems such as flight delays, orders canceled prior to pick-up, product returns, etc. 

        (c)  Gen-Probe
will be responsible for arranging direct shipments to Customers located in the United States. With respect to shipments outside the United States,
Gen-Probe shall only be responsible for arranging shipments to Chiron's primary foreign distribution points (where such Chiron distribution points exist), not to exceed one such
distribution point per country. 

        (d)  When
Chiron desires that Blood Screening Assays be shipped to a Customer out of Chiron's inventory held by Gen-Probe under Section 6.4.4, Chiron will
provide Gen-Probe with a shipping request. Each shipping request shall be in writing and in a form mutually agreeable to Chiron and Gen-Probe. Gen-Probe will use
Commercially Reasonable Efforts to ship Blood Screening Assays so that the Blood Screening Assays will arrive at the designated Customer location by the delivery date set forth in such request, at
Chiron's expense. Gen-Probe will give special attention to emergency orders, 

10

 

but shall not be in breach of such obligation if Gen-Probe has used Commercially Reasonable Efforts to expedite shipment for such emergency orders. 

        (e)  Chiron
shall pay to Gen-Probe a monthly fee of [***] for the warehousing services rendered by Gen-Probe pursuant to
Section 6.4.4 and the inventory management services described in this Section 6.4.5. Gen-Probe shall have the right to invoice Chiron, and payment to Chiron will be due on
the fifth (5th) day of each month. Gen-Probe shall have the right to increase such monthly fee once in each twelve (12) month period,  provided, that (i) the increase for the period
January 1 through December 31, 2002 shall not exceed an amount equal to
[***] multiplied by a fraction (1) the numerator of which is the index number in the Consumer Price Index for the Standard Metropolitan Statistical Area (or equivalent)
that then includes San Diego, California, as published by the U.S. Department of Labor or other authoritative federal government agency, for October 1, 2001 and (2) the denominator of
which is said index number for October 1, 2000 and (ii) increases in such monthly fees for periods subsequent to December 31, 2002 shall be limited in this same fashion. Payments
that are past-due under this Section shall bear a late payment charge at the lesser of the London Interbank Offered Rate (LIBOR) or the highest rate permitted by applicable law." 

        (f)    Promptly
following any termination of the provision of warehousing support services described under Section 6.4.4, the parties will meet to consider the reduced
inventory management, packing and shipping needs of Chiron, and amend this Section 6.4.5 accordingly." 

        7.    Safety Stocks. Section 6.12 (Safety Stocks) is hereby deleted and replaced, in its
entirety, as follows: 

        "6.12    Safety Stocks.    

        (a)  The
Supervisory Board will from time-to-time review and establish the appropriate level of Safety Stocks for the Blood Screening Assays. The
parties agree that the appropriate level of Safety Stock for the Initial Blood Screening Assay as of the Amendment Effective Date is reflected in the five month inventory requirement described in
Section 6.3.4 above. 

        (b)  With
respect to any Initial Blood Screening Assay or Future Blood Screening Assay, the objective of the parties is to share equally the aggregate cost of maintaining
safety stocks of raw components, work in progress, and finished goods as required by CBER." 

        8.    Scope of Amendment No. 3. The parties hereto agree that the Forecasts and Orders provisions
set forth in Section 2 of this Amendment No. 3 address the rights and obligations of each party with respect to Lot 13 and subsequent Lots. Except as expressly stated herein, nothing in
Section 2 of this Amendment
No. 3 shall apply in any respect to the rights or obligations of the parties with respect to Lots 1-12. Accordingly, and for ease of implementation, the parties agree that the
Forecast and Orders provisions set forth in Section 2 will apply commencing with and applying to the Forecast due April 1, 2002 from Chiron (covering the 12 months ending
April 30, 2003). Notwithstanding the above, the Order Processing provisions of new Section 6.3.6 shall govern the rights and obligations of each party from and after the Amendment
Effective Date. Except as set forth in this Section 8, from and after the Amendment Effective Date, this Amendment No. 3 shall apply in all respects to the Agreement. 

        9.    Limited Terms Applicable to [***]. The parties agree to equally share the
"variable manufacturing cost" of those portions of [***] held in inventory by Gen-Probe and Chiron that are unsold, not retained for R&D or other internal purpose
by either party and scrapped due to product expiration, net of the aggregate purchase price previously paid by Chiron to Gen-Probe for expired 

11

 

units held in Chiron's inventory. For the purpose of this Amendment No. 3, [***] will be used as the "variable manufacturing cost" to value scrap material. To the
extent necessary to avoid product outdating and if requested by Chiron, Gen-Probe agrees to re-label, at Gen-Probe's expense and in accordance with all
international and domestic labeling requirements, such Blood Screening Assays in [***] that may be relabeled with twenty-four (24) month expiration dates. 

        10.    Effect of Amendment No. 3 on Supplemental Agreement. As of the Amendment Effective Date,
the Supplemental Agreement shall terminate in all respects. Each party's obligations under such Supplemental Agreement shall terminate as of such date; provided, however, that such termination shall
not act to bar claims under the terms of the Supplemental Agreement that arose prior to such Amendment Effective Date. 

        11.    No Other Amendment. Except as is expressly set forth in this Amendment No. 3, all other
terms and conditions of the Agreement and the Settlement Agreement are hereby ratified and shall continue in full force and effect. 

        12.    Counterparts. This Amendment No. 3 may be executed in counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and same instrument. 

        IN
WITNESS WHEREOF, the parties have caused this Amendment No. 3 to be executed as of April 1, 2002 and the persons signing below warrant that they are duly authorized to
sign for and on behalf of the respective parties. 

	Gen-Probe:	 	Chiron:
	

GEN-PROBE INCORPORATED,	
 	

CHIRON CORPORATION
	a Delaware corporation	 	a Delaware corporation
	

By /s/  HENRY L. NORDHOFF      	
 	

By /s/ WILLIAM G. GREEN
	
 Henry L. Nordhoff	 	
 William G. Green
	President and Chief Executive Officer	 	Senior Vice President and President, Blood Testing
	[SEAL]

[which reads:

APPROVED

Bowen

Legal Dept]	 	 

12

 
 
 

Schedule A.1
  
    Labeling Requirements    
  

	Part Number
 
	 	Description
	 	Label Options

	[***]	 	[***]	 	[***]

13

 
 
 

Schedule A.2
  
    Standing Agenda for Production Planning Meetings    
  

Purpose: 

        Review
Forecast and production plan and make the appropriate production planning and inventory management decisions to meet Customer supply needs in a cost efficient manner. 

Agenda:

        —    Review
previous month performance 

        —    Shipments

        —    Inventory

        —    Production 

        —    Delivery 

        —    Review
current Forecast and production plan 

        —    [***]

        —    Timing/feasibility
for next production? 

        —    "What
If analysis"—Risk and risk management discussion 

        —    Outstanding
issues [***] 

        —    Review
Plan and Key Decisions. 

14

 
 
 

Schedule A.3
  
    Sample Purchase Order    
  

15

  

	 	 	CHIRON
	Purchase order	 	Supplier:
	

P.O. # 45059813

Order Date: 21-May-2002

Buyer: Mary Semeniuk

Phone #: 510-923-6010

Fax #: 510-923-3340	
 	

GEN-PROBE INCORPORATED

10210 GENETIC CENTER DRIVE

SAN DIEGO CA 92121

Vendor Contact: SHERYL STILES

Phone #: 858-410-8984

Fax #: 800-288-3141

        A
copy of this purchase order was faxed to Sheryl Stiles at Gen-Probe. 

Equal
Opportunity Contract Clause (EOC)

Chiron Corporation is committed to the provisions outlined in the Equal Opportunity Clauses of Executive Order 11246, (60-1.4), Section 503 of the Rehabilitation Act of 1973,
(60-741.5), and, Section 402 of the Vietnam Veterans Readjustment Act of 1974, (60-250.4), As well as any other regulations pertaining to these orders. 

        Please
fax a copy of the packing list to Erica Artis at Chiron Corp at 510-923-2786. 

	Item #
 
	 	QTY/UOM
	 	Chiron Mat #

Vendor Mat #

Material Description
	 	Price
	 	Extended Price

	1	 	170 EA	 	[***]

301030-PROCLEIX (TM) 5000 IVD TEST KIT

[***]

[***]	 	[***] per EA	 	[***]
	2	 	35 EA	 	[***]

301031

301031-PROCLEIX (TM), 1000 IVD TEST KIT

[***]

[***]	 	[***] per EA	 	[***]
	3	 	885 EA	 	[***]

301027-PROCLEIX (TM), ASSAY FLUIDS, IVD

[***]

[***]	 	[***] per EA	 	[***]
	4	 	443 EA	 	[***]

301038-PROCLEIX (TM), AUTO DETECT, IVD

[***]

[***]	 	[***] per EA	 	[***]

16

 

	 	 	CHIRON
	Purchase order	 	Supplier:
	

P.O. # 45059813

Order Date: 21-May-2002

Buyer: Mary Semeniuk

Phone #: 510-923-6010

Fax #: 510-923-3340	
 	

GEN-PROBE INCORPORATED

10210 GENETIC CENTER DRIVE

SAN DIEGO CA 92121

Vendor Contact: SHERYL STILES

Phone #: 858-410-8984

Fax #: 800-288-3141

	Item #
 
	 	QTY/UOM
	 	Chiron Mat #

Vendor Mat #

Material Description
	 	Price
	 	Extended Price

	5	 	575 EA	 	[***]

301026-PROCLEIX (TM), DISCR PROBE, IVD

[***]	 	[***] per EA	 	[***]
	6	 	60 EA	 	[***]

301036

301036-PROCLEIX (TM), HIV-1/HCV CALIB, IVD

[***]	 	[***] per EA	 	[***]
	7	 	465 EA	 	[***]

301035

301035-PROCLEIX (TM), HIV-1/HCV CONTR,IVD

[***]	 	[***] per EA	 	[***]
	8	 	50 EA	 	[***]

301034

301034-PROCLEIX (TM), PROF PANELS, IVD

[***]	 	[***] per EA	 	[***]
	9	 	885 CAS	 	[***]

GP

TU0022-TEN TUBE UNIT (TTU), ESAS

[***]	 	[***] per CAS	 	[***]
	10	 	885 CAS	 	[***]

GP

104578-TEN TUBE CASSETTE (TTC)

[***]	 	[***] per CAS	 	[***]
	11	 	7,630 CAS	 	[***]

GP

102085-SEALING CARDS (35/PKG)

[***]	 	[***] per CAS	 	[***]
	12	 	38 EA	 	[***]

[***]

[***]	 	[***] per EA	 	[***]

17

 

	 	 	CHIRON
	Purchase order	 	Supplier:
	

P.O. # 45059813

Order Date: 21-May-2002

Buyer: Mary Semeniuk

Phone #: 510-923-6010

Fax #: 510-923-3340	
 	

GEN-PROBE INCORPORATED

10210 GENETIC CENTER DRIVE

SAN DIEGO CA 92121

Vendor Contact: SHERYL STILES

Phone #: 858-410-8984

Fax #: 800-288-3141

	Item #
 
	 	QTY/UOM
	 	Chiron Mat #

Vendor Mat #

Material Description
	 	Price
	 	Extended Price

	 	 	 	 	[***]	 	 	 	 
	 	 	 	 	Total Net Item Value Excluding Tax	 	 	 	[***] USD

	 
	 	 

	

 	
 	

 
	Free on board SHIPPING POINT

Shipment Terms: Within 30 days Due net	 	 
	
Remit To:	
 	

Deliver To:
	Chiron Corporation

Accounts Payable Department

4560 Horton Street

Emeryville, CA 94608

Attn: P.O.# 45059813	 	Chiron Warehouse

C/O Gen-Prove Incorporated

10808 Willow Court

San Diego CA 92127

Attn: P.O.# 45059813

	 
	 	 
	 	 
	 	 

	Supplier Confirmation By:	 	 	 	For Chiron Corp. By:	 	 
	 	 	
	 	 	 	

	(If Requested)	 	Authorized Agent, Title, Date	 	 	 	Authorized Agent, Title Date

18

 
 
 

Schedule A.4
  
    List of Warehousing Facilities    
  

[***] 

[***] 

[***] 

***Certain
information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

19

QuickLinks

Exhibit 10.318

AMENDMENT NO. 3 TO AGREEMENT

Recitals

Agreement

Schedule A.1 Labeling Requirements

Schedule A.2 Standing Agenda for Production Planning Meetings

Schedule A.3 Sample Purchase Order

Schedule A.4 List of Warehousing FacilitiesQuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 4.1    
  

IHOP CORP.

INTERNATIONAL HOUSE OF PANCAKES, INC. 

       

$95,000,000 5.20% Senior Notes, Series A, due October 28, 2012

$5,000,000 5.88% Senior Notes, Series B, due October 28, 2012 

      

 

NOTE PURCHASE AGREEMENT 

 

Dated October 28, 2002 

      

 
 

TABLE OF CONTENTS    
  

(Not
a part of the Agreement) 

	Section
 
	 	Heading
 
	 	Page
 

	Section 1.	 	Authorization of Notes	 	1
	

Section 2.	
 	

Sale and Purchase of Notes	
 	

1
	

 	

Section 2.1.	
 	

Sale and Purchase of Notes	
 	

1
	 	Section 2.2.	 	Additional Series of Notes	 	1
	

Section 3.	
 	

Closing	
 	

2
	

Section 4.	
 	

Conditions to Obligations of Purchaser	
 	

2
	

 	

Section 4.1.	
 	

Representations and Warranties	
 	

2
	 	Section 4.2.	 	Performance; No Default.	 	3
	 	Section 4.3.	 	Compliance Certificates	 	3
	 	Section 4.4.	 	Opinions of Counsel	 	3
	 	Section 4.5.	 	Purchase Permitted by Applicable Law, etc	 	3
	 	Section 4.6.	 	Sale of Other Notes	 	3
	 	Section 4.7.	 	Payment of Special Counsel Fees.	 	3
	 	Section 4.8.	 	Private Placement Number	 	3
	 	Section 4.9.	 	Changes in Corporate Structure	 	3
	 	Section 4.10.	 	Funding Instructions	 	4
	 	Section 4.11.	 	Proceedings and Documents	 	4
	 	Section 4.12.	 	Conditions to Issuance of Additional Note	 	4
	 	Section 4.13.	 	Guarantee Agreement	 	4
	 	Section 4.14.	 	Intercreditor Agreement	 	4
	

Section 5.	
 	

Conditions to Obligations of the Company	
 	

4
	

 	

Section 5.1.	
 	

Representations and Warranties	
 	

4
	 	Section 5.2.	 	Other Purchasers	 	4
	

Section 6.	
 	

Representations and Warranties of IHOP and the Company	
 	

5
	

 	

Section 6.1.	
 	

Organization; Power and Authority	
 	

5
	 	Section 6.2.	 	Authorization, etc	 	5
	 	Section 6.3.	 	Disclosure	 	5
	 	Section 6.4.	 	Organization and Ownership of Shares of Subsidiaries; Affiliates	 	5
	 	Section 6.5.	 	Financial Statements	 	6
	 	Section 6.6.	 	Compliance with Laws, Other Instruments, etc	 	6
	 	Section 6.7.	 	Governmental Authorizations, etc	 	6
	 	Section 6.8.	 	Litigation; Observance of Agreements, Statutes and Orders	 	6
	 	Section 6.9.	 	Taxes	 	7
	 	Section 6.10.	 	Title to Property; Leases	 	7
	 	Section 6.11.	 	Licenses, Permits, etc	 	7
	 	Section 6.12.	 	Compliance with ERISA	 	7
	 	Section 6.13.	 	Private Offering by the Company	 	8
	 	Section 6.14.	 	Use of Proceeds; Margin Regulations	 	8
	 	Section 6.15.	 	Existing Indebtedness; Future Liens	 	8
	 	Section 6.16.	 	Foreign Assets Control Regulations, etc	 	9
	 	Section 6.17.	 	Status under Certain Statutes	 	9
	 	Section 6.18.	 	Notes Rank Pari Passu	 	9
	 	Section 6.19.	 	Environmental Matters	 	9
	

Section 7.	
 	

Representations of the Purchaser	
 	

9

 

	

 	

Section 7.1.	
 	

Purchase for Investment	
 	

10
	 	Section 7.2.	 	Source of Funds	 	10
	 	Section 7.3.	 	Investor Status	 	11
	

Section 8.	
 	

Information as to Company	
 	

11
	

 	

Section 8.1.	
 	

Financial and Business Information	
 	

11
	 	Section 8.2.	 	Officer's Certificate	 	13
	 	Section 8.3.	 	Inspection	 	14
	

Section 9.	
 	

Prepayment of the Notes	
 	

15
	

 	

Section 9.1.	
 	

Required Prepayments	
 	

15
	 	Section 9.2.	 	Optional Prepayments with Make-Whole Amount	 	15
	 	Section 9.3.	 	Change in Control	 	15
	 	Section 9.4.	 	Allocation of Partial Prepayments	 	17
	 	Section 9.5.	 	Maturity; Surrender, etc	 	17
	 	Section 9.6.	 	Purchase of Notes	 	17
	 	Section 9.7.	 	Make-Whole Amount	 	17
	

Section 10.	
 	

Affirmative Covenants	
 	

19
	

 	

Section 10.1.	
 	

Compliance with Law	
 	

19
	 	Section 10.2.	 	Insurance	 	19
	 	Section 10.3.	 	Maintenance of Properties	 	19
	 	Section 10.4.	 	Payment of Taxes and Claims	 	19
	 	Section 10.5.	 	Corporate Existence, etc	 	19
	 	Section 10.6.	 	Nature of Business	 	20
	 	Section 10.7.	 	Notes to Rank Pari Passu	 	20
	

Section 11.	
 	

Negative Covenants	
 	

20
	

 	

Section 11.1.	
 	

Transactions with Affiliates	
 	

20
	 	Section 11.2.	 	Merger, Consolidation, etc	 	20
	 	Section 11.3.	 	Liens	 	21
	 	Section 11.4.	 	Priority Debt	 	22
	 	Section 11.5.	 	Consolidated Adjusted Net Worth	 	22
	 	Section 11.6.	 	Fixed Charges Coverage Ratio	 	22
	 	Section 11.7.	 	Limitations on Funded Debt	 	22
	 	Section 11.8.	 	Sale of Assets, Etc	 	23
	 	Section 11.9.	 	Additional Guarantors	 	23
	

Section 12.	
 	

Events of Default	
 	

23
	

Section 13.	
 	

Remedies on Default, etc	
 	

25
	

 	

Section 13.1.	
 	

Acceleration	
 	

25
	 	Section 13.2.	 	Other Remedies	 	26
	 	Section 13.3.	 	Rescission	 	26
	 	Section 13.4.	 	No Waivers or Election of Remedies, Expenses, etc	 	26
	

Section 14.	
 	

Registration; Exchange; Substitution of Notes	
 	

26
	

 	

Section 14.1.	
 	

Registration of Notes	
 	

26
	 	Section 14.2.	 	Transfer and Exchange of Notes	 	26
	 	Section 14.3.	 	Replacement of Notes	 	27

ii

 

	

Section 15.	
 	

Payments on Notes	
 	

27
	

 	

Section 15.1.	
 	

Place of Payment	
 	

27
	 	Section 15.2.	 	Home Office Payment	 	27
	

Section 16.	
 	

Expenses, Etc	
 	

28
	

 	

Section 16.1.	
 	

Transaction Expenses	
 	

28
	 	Section 16.2.	 	Survival	 	28
	

Section 17.	
 	

Survival of Representations and Warranties; Entire Agreement	
 	

28
	

Section 18.	
 	

Amendment and Waiver	
 	

28
	

 	

Section 18.1.	
 	

Requirements	
 	

28
	 	Section 18.2.	 	Solicitation of Holders of Notes	 	29
	 	Section 18.3.	 	Binding Effect, etc	 	29
	 	Section 18.4.	 	Notes Held by IHOP or the Company, etc	 	29
	

Section 19.	
 	

Notices	
 	

29
	

Section 20.	
 	

Reproduction of Documents	
 	

30
	

Section 21.	
 	

Confidential Information	
 	

30
	

Section 22.	
 	

Substitution of Purchaser	
 	

31
	

Section 23.	
 	

Miscellaneous	
 	

31
	

 	

Section 23.1.	
 	

Successors and Assigns	
 	

31
	 	Section 23.2.	 	Payments Due on Non-Business Days	 	31
	 	Section 23.3.	 	Severability	 	31
	 	Section 23.4.	 	Construction	 	31
	 	Section 23.5.	 	Counterparts	 	31
	 	Section 23.6.	 	Governing Law	 	31
	

Signature	
 	

 	
 	

32

iii

 

	Schedule A	—	Information Relating to Purchasers
	

Schedule B	

—	

Defined Terms
	

Schedule 6.4	

—	

Subsidiaries of the Company and Ownership of Subsidiary Stock
	

Schedule 6.5	

—	

Financial Statements
	

Schedule 6.15	

—	

Existing Debt
	

Schedule 6.19	

—	

Environmental Matters
	

Exhibit 1(a)	

—	

Form of 5.20% Senior Note, Series A, due October 28, 2012
	

Exhibit 1(b)	

—	

Form of 5.88% Senior Note, Series B, due October 28, 2012
	

Exhibit 4.4(a)	

—	

Form of Opinion of Special Counsel for the Company
	

Exhibit 4.4(b)	

—	

Form of Opinion of General Counsel for the Company
	

Exhibit 4.4(c)	

—	

Form of Opinion of Special Counsel for the Purchasers
	

Exhibit 4.14	

—	

Form of Amended and Restated Intercreditor Agreement
	

Exhibit S	

—	

Form of Supplement

iv

IHOP CORP.

INTERNATIONAL HOUSE OF PANCAKES, INC.

450 NORTH BRAND BOULEVARD

7TH FLOOR

GLENDALE, CALIFORNIA 91203-2306  

5.20% Senior Notes, Series A, due October 28, 2012

5.88% Senior Notes, Series B, due October 28, 2012 

October 28,
2002 

TO
EACH OF THE PURCHASERS LISTED IN

THE ATTACHED SCHEDULE A: 

Ladies
and Gentlemen: 

        IHOP
Corp., a Delaware corporation ("IHOP"), and International House of Pancakes, Inc., a Delaware corporation (the  "Company"), jointly and severally,
agree with you as follows: 

SECTION 1.    AUTHORIZATION
OF NOTES. 

        The
Company will authorize the issue and sale of (a) $95,000,000 aggregate principal amount of its 5.20% Senior Notes, Series A, due October 28, 2012 (the  "Series A Notes") and
(b) $5,000,000 aggregate principal amount of its 5.88% Senior Notes, Series B, due October 28, 2012
(the "Series B Notes"; the Series A Notes and the Series B Notes being hereinafter collectively referred to as the
"2002 Notes"). The 2002 Notes, together with each series of Additional Notes which may from time to time be issued pursuant to the provisions of  Section 2.2 are collectively referred to as the "Notes" (such term shall also include any such
notes issued in substitution therefor pursuant to Section 14 of this Agreement or the Other Agreements (as hereinafter defined)). The
Series A Notes and the Series B Notes shall be substantially in the form set out in Exhibits 1-A and 1-B, respectively, with such changes therefrom, if any, as
may be approved by you and the Company. Certain capitalized terms used in this Agreement are defined in Schedule B; references to a  "Schedule" or an
"Exhibit" are, unless otherwise specified, to a Schedule or an Exhibit attached to this
Agreement. 

SECTION 2.    SALE
AND PURCHASE OF NOTES 

        Section 2.1.    Sale and Purchase of Notes.    Subject to the terms and conditions of this Agreement, the
Company will issue and sell to you and you will purchase from the Company, at the Closing provided for in Section 3, the 2002 Notes in the
principal amount and of the series specified opposite your name in Schedule A at the purchase price of 100% of the principal amount thereof.
Contemporaneously with entering into this Agreement, IHOP and the Company are entering into separate Note Purchase Agreements (the "Other Agreements")
identical with this Agreement with each of the other purchasers named in Schedule A (the "Other
Purchasers"), providing for the sale at such Closing to each of the Other Purchasers of the 2002 Notes in the principal amount and of the series specified opposite its name in  Schedule A. Your obligation hereunder, and the obligations of the Other Purchasers under the Other Agreements, are several and not joint
obligations, and you shall have no obligation under any Other Agreement and no liability to any Person for the performance or nonperformance by any Other Purchaser thereunder. The Series A
Notes, the Series B Notes and each other series of Notes issued hereunder are each herein sometimes referred to as Notes of a "series." 

        Section 2.2.    Additional Series of Notes.    The Company may, from time to time, in its sole discretion, but
subject to the terms hereof, issue and sell one or more additional series of its unsecured promissory notes under the provisions of this Agreement pursuant to a supplement (a  "Supplement") substantially
in the form of Exhibit S. Each additional series of Notes (the  "Additional Notes") issued pursuant to a Supplement shall be subject to the following
terms and conditions:
 

        (i)    each
series of Additional Notes, when so issued, shall be differentiated from all previous series by sequential alphabetical designation inscribed thereon; 

        (ii)  Additional
Notes of the same series may consist of more than one different and separate tranches and may differ with respect to outstanding principal amounts, maturity
dates, interest 

 

rates and premiums, if any, and price and terms of redemption or payment prior to maturity, but all such different and separate tranches of the same series shall vote as a single class and constitute
one series; 

        (iii)  each
series of Additional Notes shall be dated the date of issue, bear interest at such rate or rates, mature on such date or dates, be subject to such mandatory and
optional prepayment on the dates and at the premiums, if any, have such additional or different conditions precedent to closing, such representations and warranties and such additional covenants as
shall be specified in the Supplement
under which such Additional Notes are issued and, upon execution of any such Supplement, this Agreement shall be amended to include such additional covenants without further action on the part of the
holders of the Notes outstanding under this Agreement (which amendment shall in no event reduce or impair any of the covenants then existing in this Agreement),  provided, that any such additional
covenants shall inure to the benefit of all holders of Notes so long as any Additional Notes issued pursuant to such
Supplement remain outstanding; 

        (iv)  each
series of Additional Notes issued under this Agreement shall be in substantially the form of Exhibit 1 to  Exhibit S hereto with such variations,
omissions and insertions as are necessary or permitted hereunder and thereunder; 

        (v)  the
minimum aggregate principal amount of any Additional Notes issued under a Supplement shall be $10,000,000; 

        (vi)  all
Additional Notes shall mature more than one year after the issuance thereof and shall constitute Funded Debt of the Company and shall rank  pari passu with all other outstanding Notes; and 

        (vii) no
Additional Notes shall be issued hereunder if at the time of issuance thereof or after giving effect to the application of the proceeds thereof, any Default or
Event of Default shall have occurred and be continuing. 

SECTION 3.    CLOSING. 

        The
sale and purchase of the 2002 Notes to be purchased by you and the Other Purchasers shall occur at the offices of Chapman and Cutler, 111 West Monroe, Chicago, IL 60603, at
10:00 a.m., Chicago time, at a closing (the "Closing") on October 28, 2002 or on such other Business Day thereafter on or prior to
October 24, 2002 as may be agreed upon by the Company and you and the Other Purchasers. At the Closing the Company will deliver to you the 2002 Notes to be purchased by you in the form of a
single 2002 Note (or such greater number of 2002 Notes in denominations of at least $250,000 as you may request) dated the date of the Closing and registered in your name (or in the name of your
nominee), against delivery by you to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the
account of the Company to account number 4950-038554 at Wells Fargo Bank in Los Angeles, California, ABA number 121000248. If at the Closing the Company shall fail to tender such 2002
Notes to you as provided above in this Section 3, or any of the conditions specified in  Section 4 shall not have been fulfilled to your
satisfaction, you shall, at your election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights you may have by reason of such failure or such nonfulfillment. 

SECTION 4.    CONDITIONS
TO OBLIGATIONS OF PURCHASER. 

        Your
obligation to purchase and pay for the Notes to be sold to you at the Closing is subject to the fulfillment to your satisfaction, prior to or at the Closing, of the following
conditions: 

        Section 4.1.    Representations and Warranties.    The representations and warranties of IHOP and of the
Company in this Agreement shall be correct when made and at the time of the Closing. 

2

 

        Section 4.2.    Performance; No Default.    Each of IHOP and the Company shall have performed and complied with
all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing and after giving effect to the issue and sale of the Notes (and the
application of the proceeds thereof as contemplated by Section 6.14) no Default or Event of Default shall have occurred and be continuing.
Neither IHOP, the Company nor any Subsidiary shall have entered into any transaction since the date of the Memorandum that would have been prohibited by  Section 11 hereof had such Section applied
since such date. 

        Section 4.3.    Compliance Certificates.    

        (a)  Officer's Certificate. Each of IHOP and the Company shall have delivered to you an Officer's Certificate, dated the date
of the Closing, certifying that the conditions specified in Sections 4.1, 4.2 and  4.9 have been fulfilled.

        (b)  Secretary's Certificate. Each of IHOP and the Company shall have delivered to you a certificate certifying as to the
resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of their respective Financing Agreements. 

        Section 4.4.    Opinions of Counsel.    You shall have received opinions in form and substance satisfactory to
you, dated the date of the Closing (a) from Skadden, Arps, Slate, Meagher & Flom LLP, special counsel for IHOP and the Company, covering the matters set forth in  Exhibit 4.4(a) (and
each of IHOP and the Company hereby instructs its special counsel to deliver such opinion to you), (b) from Mark
Weisberger, general counsel for IHOP and the Company, covering the matters set forth in Exhibit 4.4(b) and covering such other matters incident
to the transactions contemplated hereby as you or your counsel may reasonably request and (c) from Chapman and Cutler, your special counsel in connection with such transactions, substantially
in the form set forth in Exhibit 4.4(c) and covering such other matters incident to such transactions as you may reasonably request. 

        Section 4.5.    Purchase Permitted by Applicable Law, etc.    On the date of the Closing your purchase of the
Notes shall (i) be permitted by the laws and regulations of each jurisdiction to which you are subject, without recourse to provisions (such as Section 1405(a)(8) of the New York
Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (ii) not violate any applicable law or regulation
(including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (iii) not subject you to any tax, penalty or liability under or pursuant
to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If requested by you, you shall have received an Officer's Certificate certifying as to such matters
of fact as you may reasonably specify to enable you to determine whether such purchase is so permitted. 

        Section 4.6.    Sale of Other Notes.    Contemporaneously with the Closing, the Company shall sell to the Other
Purchasers, and the Other Purchasers shall purchase the Notes to be purchased by them at the Closing as specified in Schedule A. 

        Section 4.7.    Payment of Special Counsel Fees.    Without limiting the provisions of  Section 16.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of your special counsel referred to in  Section 4.4 to
the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing. 

        Section 4.8.    Private Placement Number.    A Private Placement number issued by Standard & Poor's
CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for each series of the 2002 Notes. 

        Section 4.9.    Changes in Corporate Structure.    Neither IHOP nor the Company shall have changed its
jurisdiction of incorporation or been a party to any merger or consolidation or shall have succeeded 

3

 

to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in  Schedule 6.5. 

        Section 4.10.    Funding Instructions.    At least three Business Days prior to the date of the Closing, you
shall have received written instructions executed by a Responsible Officer directing the manner of the payment of funds and setting forth (i) the name and address of the transferee bank,
(ii) such transferee bank's ABA number, (iii) the account name and number into which the purchase price for the Notes is to be deposited, and (iv) the name and telephone number of
the account representative responsible for verifying receipt of such funds. 

        Section 4.11.    Proceedings and Documents.    All corporate and other proceedings in connection with the
transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to you and your special counsel, and you and your special counsel
shall
have received all such counterpart originals or certified or other copies of such documents as you or they may reasonably request. 

        Section 4.12.    Conditions to Issuance of Additional Notes.    The obligations of the Additional Purchasers to
purchase any Additional Notes shall be subject to the following conditions precedent, in addition to the conditions specified in the Supplement pursuant to which such Additional Notes may be issued: 

        (a)  Compliance Certificate. A duly authorized Senior Financial Officer of each of IHOP and of the Company shall execute and
deliver to each Additional Purchaser and each holder of Notes an Officer's Certificate dated the date of issue of such series of Additional Notes stating that such officer has reviewed the provisions
of this Agreement (including any Supplements hereto) and setting forth the information and computations (in sufficient detail) required in order to establish whether IHOP and the Company are in
compliance with the requirements of Section 11 on such date. 

        (b)  Execution and Delivery of Supplement. IHOP and the Company and each such Additional Purchaser shall execute and deliver a
Supplement substantially in the form of Exhibit S hereto. 

        (c)  Representations of Additional Purchasers. Each Additional Purchaser shall have confirmed in the Supplement that the
representations set forth in Section 7 are true with respect to such Additional Purchaser on and as of the date of issue of the Additional Notes. 

        Section 4.13.    Guarantee Agreement.    The Guarantors shall have each executed and delivered the Guarantee
Agreement. 

        Section 4.14.    Intercreditor Agreement.    The Amended and Restated Intercreditor Agreement in the form of
 Exhibit 4.14 attached hereto shall have been executed and delivered by the parties thereto and shall be in full force and effect and you shall
have received a true, correct and complete copy thereof. 

SECTION 5.    CONDITIONS
TO OBLIGATIONS OF THE COMPANY. 

        The
Company's obligation to issue and sell the Notes to be sold by it at the Closing is subject to the fulfillment to its satisfaction, prior to or at the Closing, of the following
conditions: 

        Section 5.1.    Representations and Warranties.    The representations and warranties contained in  Section 7 of this Agreement shall be correct when made and at the time of the Closing. 

        Section 5.2.    Other Purchasers.    Notes representing no less than $85,000,000 of initial principal amount
shall have been purchased by you and the Other Purchasers purchasing Notes pursuant to the Other Agreements at the time of the Closing. 

4

 

SECTION 6.    REPRESENTATIONS
AND WARRANTIES OF IHOP AND THE COMPANY. 

        The
Company and IHOP, jointly and severally, represent and warrant to you that: 

        Section 6.1.    Organization; Power and Authority.    Each of the Company and IHOP is a corporation duly
organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in
which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. Each of the Obligors has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the
business it transacts and proposes to transact, to execute and deliver the Financing Agreements to which it is a party and to perform the provisions hereof and thereof. 

        Section 6.2.    Authorization, etc.    The Financing Agreements have been duly authorized by all necessary
corporate action on the part of each Obligor party thereto, and each Financing Agreement constitutes, or upon execution and delivery thereof, will constitute, a legal, valid and binding obligation of
each Obligor party thereto enforceable against such Obligor in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors' rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law). 

        Section 6.3.    Disclosure.    The Company and IHOP, through their agents, SPP Capital Partners, LLC and Wells
Fargo Bank, have delivered to you and each Other Purchaser a copy of a Confidential Direct Placement Memorandum (including all exhibits thereto), dated September 2002 (the  "Memorandum"), relating
to the transactions contemplated hereby. The Memorandum fairly describes, in all material respects, the general nature of the
business and principal properties of IHOP and its Subsidiaries. This Agreement, the Memorandum, the documents, certificates or other writings delivered to you by or on behalf of the Company and IHOP
in connection with the transactions contemplated hereby and the financial statements listed in Schedule 6.5, taken as a whole, do not contain any
untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as
disclosed in the Memorandum, or in one of the documents, certificates or other writings identified therein, or in the financial statements listed in  Schedule 6.5, since December 31, 2001,
there has been no change in the financial condition,
operations, business, properties or prospects of IHOP, the Company or any Subsidiary except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse
Effect. There is no fact known to IHOP or the Company that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Memorandum or in the other
documents, certificates and other writings delivered to you by or on behalf of IHOP or the Company specifically for use in connection with the transactions contemplated hereby, other than conditions,
events or circumstances generally adversely affecting the restaurant industry as a whole. 

        Section 6.4.    Organization and Ownership of Shares of Subsidiaries; Affiliates.    (a)  Schedule 6.4 contains (except as noted therein) complete and correct lists (i) of all the Subsidiaries, showing, as to each Subsidiary,
the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by IHOP, the Company and
each other Subsidiary, (ii) of each Affiliate, other than Subsidiaries, and (iii) of IHOP and the Company's directors and senior officers. 

        (b)  All
of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in  Schedule 6.4 as being owned by IHOP, the Company or any Subsidiary have been validly 

5

 

issued, are fully paid and nonassessable and are owned by IHOP, the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in  Schedule 6.4). 

        (c)  Each
Subsidiary identified in Schedule 6.4 is a corporation or other legal entity duly organized, validly existing
and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the
business it transacts and proposes to transact. 

        (d)  No
Subsidiary is a party to, or otherwise subject to any legal restriction or any agreement (other than this Agreement, the agreements listed on  Schedule 6.4 and customary limitations imposed by
corporate law statutes) restricting the ability of such Subsidiary to pay dividends out of
profits or make any other similar distributions of profits to IHOP or the Company or any of their Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such
Subsidiary. 

        Section 6.5.    Financial Statements.    The Company has delivered to each Purchaser copies of the financial
statements of IHOP listed on Schedule 6.5. All of said financial statements (including in each case the related schedules and notes) fairly
present in all material respects the consolidated financial position of IHOP and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations
and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set
forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). 

        Section 6.6.    Compliance with Laws, Other Instruments, etc.    The execution and delivery of, and the
performance by each Obligor of its respective obligations under, the Financing Agreements to which it is a party will not (i) contravene, result in any breach of, or constitute a default under,
or result in the creation of any Lien in respect of any property of any Obligor under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or
by-laws, or any other agreement or instrument to which any Obligor is bound or by which any Obligor or any of their respective properties may be bound or affected, (ii) conflict
with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to any Obligor or
(iii) subject to the provisions of Section 6.12(e), violate any provision of any statute or other rule or regulation of any Governmental
Authority applicable to any Obligor. 

        Section 6.7.    Governmental Authorizations, etc.    No consent, approval or authorization of, or registration,
filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by each Obligor of the Financing Agreements to which it is a party. 

        Section 6.8.    Litigation; Observance of Agreements, Statutes and Orders.    There are no actions, suits or
proceedings pending or, to the knowledge of IHOP or the Company, threatened against or affecting any Obligor or any property of any Obligor in any court or before any arbitrator of any kind or before
or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

        (b)  No
Obligor is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any
court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws) of any Governmental Authority,
which default or 

6

 

violation, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

        Section 6.9.    Taxes.    Each Obligor has filed all tax returns that are required to have been filed in any
jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent
such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the
aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the related Obligor, as
the case may be, has established adequate reserves in accordance with GAAP. IHOP and the Company know of no basis for any other tax or assessment that could reasonably be expected to have a Material
Adverse Effect. The charges, accruals and reserves on the books of IHOP and its Subsidiaries in respect of Federal, state or
other taxes for all fiscal periods are adequate. The Federal income tax liabilities of IHOP and its Subsidiaries have been determined by the Internal Revenue Service and paid for all fiscal years up
to and including the fiscal year ended December 31, 1998. 

        Section 6.10.    Title to Property; Leases.    Each Obligor has good and sufficient title to their respective
properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in  Section 6.5 or purported to have been
acquired by an Obligor after said date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens prohibited by this Agreement. All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in
all Material respects. 

        Section 6.11.    Licenses, Permits, etc.    (a) The Obligors own or possess all licenses, permits, franchises,
authorizations, patents, copyrights, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are material to the conduct of their respective businesses as
now conducted and as described in the Memorandum, without known conflict with the rights of others; 

        (b)  to
the best knowledge of IHOP and the Company, no product of an Obligor infringes in any Material respect any license, permit, franchise, authorization, patent,
copyright, service mark, trademark, trade name or other right owned by any other Person; and 

        (c)  to
the best knowledge of IHOP and the Company, there is no Material violation by any Person of any right of an Obligor with respect to any patent, copyright, service
mark, trademark, trade name or other right owned or used by an Obligor. 

        Section 6.12.    Compliance with ERISA.    (a) IHOP, the Company and each ERISA Affiliate have operated and
administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse
Effect. Neither IHOP, the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit
plans (as defined in Section 3 of ERISA), and no event, transaction or condition has occurred or exists that could reasonably be expected to
result in the incurrence of any such liability by IHOP, the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of IHOP, the Company or any
ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to Section 401(a)(29) or  412 of the
Code, other than such liabilities, penalties, excise taxes or Liens as would not be individually or in the aggregate Material. 

        (b)  The
present value of the aggregate benefit liabilities under each of the Plans that is subject to Title IV of ERISA (other than Multiemployer Plans), determined as of
the end of such Plan's most 

7

 

recently ended plan year, on the basis of the actuarial assumptions specified for funding purposes in such Plan's most recent actuarial valuation report, did not exceed the aggregate current value of
the assets of such Plan allocable to such benefit liabilities. The terms "benefit liabilities" has the meaning specified in section 4001 of ERISA and the terms "current value" and "present
value" have the meanings specified in section 3 of ERISA. 

        (c)  IHOP,
the Company and each ERISA Affiliate have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201
or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material. 

        (d)  The
expected post-retirement benefit obligation (determined as of the last day of IHOP's most recently ended fiscal year in accordance with Financial
Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of IHOP, the Company and its
Subsidiaries is not Material. 

        (e)  The
execution and delivery of the Financing Agreements and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the
prohibitions of section 406(a) of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by IHOP and the Company
in the first sentence of this Section 6.12(e) is made in reliance upon and subject to the accuracy of your representation in  Section 7.2 as to
the sources of the funds used to pay the purchase price of the Notes to be purchased by you.
 

        Section 6.13.    Private Offering by the Company.    Neither IHOP, the Company nor anyone acting on its behalf
has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than
you, the Other Purchasers and not more than 38 other Institutional Investors, each of which has been offered the Notes at a private sale for investment. Neither IHOP, the Company nor anyone acting on
its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act. 

        Section 6.14.    Use of Proceeds; Margin Regulations.    The Company will apply the proceeds of the sale of the
Notes for future capital expenditures, to repurchase outstanding shares of capital stock of IHOP, and for general corporate purposes. No part of the proceeds from the sale of the Notes hereunder in
excess of $10,000,000 will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve an Obligor in a violation of Regulation X of said Board
(12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). At the date hereof and after giving effect to the application of the proceeds of the
Notes, margin stock does not constitute more than 5.00% of the value of the consolidated assets of IHOP and its Subsidiaries and neither IHOP nor the Company has any present intention that margin
stock will constitute more than 5.00% of the value of such assets. As used in this Section, the terms "margin stock" and "purpose of buying or carrying" shall have the meanings assigned to them in
said Regulation U. 

        Section 6.15.    Existing Indebtedness; Future Liens.    (a) Except as described therein,  Schedule 6.15 sets forth a complete and correct list of all outstanding Debt of IHOP and its Subsidiaries as of September 30, 2002, since
which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Debt of IHOP or its Subsidiaries. Neither IHOP nor any Subsidiary
is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Debt of IHOP or such Subsidiary and no event or condition exists with respect to any
Debt of IHOP or any Subsidiary that would permit (or that with notice or the lapse of 

8

 

time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly scheduled dates of payment. 

        (b)  Neither
IHOP nor any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether
now owned or hereafter acquired, to be subject to a Lien not permitted by Section 11.3. 

        Section 6.16.    Foreign Assets Control Regulations, etc.    Neither the sale of the Notes by the Company
hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31
CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, neither IHOP, the Company nor any of its Subsidiaries
(a) is or will become a person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) or (b) engages or will engage in any dealings or transactions, or be
otherwise associated, with any such person. IHOP, the Company and its Subsidiaries are in compliance, in all Material respects, with the USA Patriot Act. 

        Section 6.17.    Status under Certain Statutes.    Neither IHOP, the Company nor any Subsidiary is an
"investment company" registered or required to be registered under the Investment Company Act of 1940, as amended, or is subject to regulation under the Public Utility Holding Company Act of 1935, as
amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended. 

        Section 6.18.    Notes Rank Pari Passu.    As of the date of Closing, the obligations of the Company under this
Agreement and the Notes rank at least pari passu in right of payment with all other senior unsecured Debt (actual or contingent) of the Company,
including, without limitation, all senior unsecured Debt of the Company described in Schedule 6.15 hereto. 

        Section 6.19.    Environmental Matters.    Neither IHOP nor the Company has knowledge of any claim or has
received any notice of any claim, and no proceeding has been instituted raising any claim and that remains outstanding against IHOP, the Company or any of its Subsidiaries pertaining to any of their
respective real properties now or formerly owned, leased or operated by any of them or other assets,
alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect. Except as set
forth in Schedule 6.19,

        (a)  neither
IHOP nor the Company nor any Subsidiary has knowledge of any violation of Environmental Laws or damage to the environment emanating from or occurring on any real
properties now or formerly owned, leased or operated by IHOP, the Company or any of their Subsidiaries except, in each case, such as could not reasonably be expected to result in a Material Adverse
Effect; 

        (b)  neither
IHOP, the Company nor any Subsidiary (i) has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them or
(ii) has disposed of any Hazardous Materials, in each case, in violation of any Environmental Laws, except as could not reasonably be expected to result in a Material Adverse Effect; and 

        (c)  all
buildings on all real properties now owned, leased or operated by the Company or any of its Subsidiaries are in compliance with applicable Environmental Laws, except
where failure to comply could not reasonably be expected to result in a Material Adverse Effect. 

SECTION 7.    REPRESENTATIONS
OF THE PURCHASER. 

9

 

        Section 7.1.    Purchase for Investment.    You represent that you are purchasing the Notes for your own
account or for one or more separate accounts maintained by you or for the account of one or more pension or trust funds and not with a view to the distribution thereof,  provided that the disposition of
your or their property shall at all times be within your or their control. You understand that the Notes have not been
registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances
where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 

        Upon
original issuance thereof, and until such time as the same is no longer required under the applicable requirements of the Securities Act, the Notes shall bear a legend in
substantially the following form: 

THIS NOTE HAS NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933, AS AMENDED,

AND MAY NOT BE SOLD OR OTHERWISE

TRANSFERRED IN THE ABSENCE OF SUCH

REGISTRATION OR AN EXEMPTION THEREFROM.

        Section 7.2.    Source of Funds.    You represent that at least one of the following statements is an accurate
representation as to each source of funds (a "Source") to be used by you to pay the purchase price of the Notes to be purchased by you hereunder: 

        (a)  the
Source is an "insurance company general account" within the meaning of Department of Labor Prohibited Transaction Exemption
("PTE") 95-60 (issued July 12, 1995), and there is no employee benefit plan, treating as a single plan, all plans maintained by the
same employer or employee organization, with respect to which the amount of the general account reserves and liabilities for all contracts held by or on behalf of such plan, exceed ten percent (10%)
of the total reserves and liabilities of such general account (exclusive of separate account liabilities) plus surplus, as set forth in the NAIC Annual Statement filed with your state of domicile; or 

        (b)  the
Source is either (i) an insurance company pooled separate account, within the meaning of Prohibited Transaction Exemption
("PTE") 90-1 (issued January 29, 1990), or (ii) a bank collective investment fund, within the meaning of the PTE
91-38 (issued July 12, 1991), and, except as you have disclosed to the Company in writing pursuant to this paragraph (b), no employee benefit plan or group of plans
maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 

        (c)  the
Source constitutes assets of an "investment fund" (within the meaning of Part V of the QPAM Exemption) managed by a "qualified professional asset manager" or  "QPAM" (within the meaning of
Part V of the QPAM Exemption), no employee benefit plan's assets that are included in such investment fund, when
combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of
such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Parts 1(c) and (g) of the QPAM
Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the definition of "control" in Section V(e) of the QPAM Exemption) owns a 5% or more
interest in the Company and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the
Company in writing pursuant to this paragraph (c); or 

        (d)  the
Source is a governmental plan; or 

10

 

        (e)  the
Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified
to the Company in writing pursuant to this paragraph (e); or 

        (f)    the
Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA. 

        If
you or any subsequent transferee of the Notes indicates that you or such transferee are relying on any representation contained in paragraph (b), (c) or
(e) above, the Notes shall not be delivered to you or transferred to a subsequent transferee unless the Company shall deliver on the date of Closing and on the date of any applicable transfer a
certificate, which shall either state that (i) it is neither a party in interest nor a "disqualified person" (as defined in section 4975(e)(2) of the Internal Revenue Code of 1986, as
amended), with respect to any plan identified pursuant to paragraph (b) or (e) above, or (ii) with respect to any plan, identified pursuant to paragraph (c) above, neither
it nor any "affiliate" (as defined in Section V(c) of the QPAM Exemption) has at such time, and during the immediately preceding one year, exercised the authority to appoint or terminate said
QPAM as manager of any plan identified in writing pursuant to paragraph (c) above or to negotiate the terms of said QPAM's management agreement on behalf of any such identified plan. As used in
this Section 7.2, the terms "employee benefit plan", "governmental plan", "party in interest" and "separate account" shall have the respective
meanings assigned to such terms in Section 3 of ERISA. 

        Section 7.3.    Investor Status.    You represent that you are an "accredited investor" within the meaning of
Rule 501 under the Securities Act. 

SECTION 8.    INFORMATION
AS TO COMPANY. 

        Section 8.1.    Financial and Business Information.    IHOP or the Company shall deliver to each holder of
Notes that is an Institutional Investor: 

        (a)  Quarterly Statements—within 60 days after the end of each quarterly fiscal period in each fiscal year
of IHOP (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of: 

        (i)    a
consolidated balance sheet of IHOP and its Subsidiaries as at the end of such quarter, and 

        (ii)  consolidated
statements of income, changes in shareholders' equity and cash flows of IHOP and its Subsidiaries for such quarter and (in the case of the second and third
quarters) for the portion of the fiscal year ending with such quarter, 

setting
forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly
financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results
of operations and cash flows, subject to changes resulting from year-end adjustments, provided that delivery within the time period
specified above of copies of IHOP's Quarterly Report on Form 10-Q prepared in compliance with the requirements therefor and filed with the Securities and Exchange Commission shall
be deemed to satisfy the requirements of this Section 8.1(a); 

        (b)  Annual Statements—within 105 days after the end of each fiscal year of IHOP, duplicate copies of, 

        (i)    a
consolidated balance sheet of IHOP and its Subsidiaries, as at the end of such year, and 

        (ii)  consolidated
statements of income, changes in shareholders' equity and cash flows of IHOP and its Subsidiaries, for such year, 

11

 

setting
forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied 

        (A)  by
an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such financial statements present
fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that
the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis
for such opinion in the circumstances, and 

        (B)  by
a certificate of such accountants stating that they have reviewed this Agreement and stating further whether, in making their audit, they have become aware of any
condition or event that then constitutes a Default or an Event of Default, and, if they are aware that any such condition or event then exists, specifying the nature and period of the existence
thereof (it being understood that such accountants shall not be liable, directly or indirectly, for any failure to obtain knowledge of any Default or Event of Default unless such accountants should
have obtained knowledge thereof in making an audit in accordance with generally accepted auditing standards or did not make such an audit), 

provided that the delivery within the time period specified above of IHOP's Annual Report on Form 10 K for such fiscal year (together with IHOP's
annual report to shareholders, if any, prepared pursuant to Rule 14a 3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the Securities and Exchange
Commission, together with the accountant's certificate described in clause (B) above, shall be deemed to satisfy the requirements of this  Section 8.1(b); 

        (c)  SEC and Other Reports—promptly upon their becoming available, one copy of (i) each financial
statement, report, notice or proxy statement sent by IHOP or any of its Subsidiaries to public securities holders generally and (ii) each regular or periodic report, each registration statement
(without exhibits except as expressly requested by such holder) and each prospectus and all amendments thereto filed by IHOP or any of its Subsidiaries with the Securities and Exchange Commission and
of all press releases and other statements made available generally by IHOP or any Subsidiary to the public concerning developments that are Material; 

        (d)  Notice of Default or Event of Default—promptly, and in any event within five days after a Responsible Officer
becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given
any notice or taken any action with respect to a claimed default of the type referred to in Section 12(f), a written notice specifying the nature
and period of existence thereof and what action the Company is taking or proposes to take with respect thereto; provided that any Default or Event of
Default that is deemed to have arisen upon IHOP or the Company's failure to promptly notify any holder of Notes that is an Institutional Investor of another Default or Event of Default in accordance
with this Section 8.1(d) shall be deemed to be waived so long as (i) such underlying Default or Event of Default as to which notice is
required to be given (the "Underlying Default") has been completely cured, (ii) the Underlying Default, if it had not been completely cured,
would not have had a Material Adverse Effect and (iii) notice of the Underlying Default is delivered within 30 days of its occurrence; 

        (e)  ERISA Matters—promptly, and in any event within five days after a Responsible Officer becoming aware of any
of the following, a written notice setting forth the nature thereof and the 

12

 

action, if any, that IHOP, the Company or an ERISA Affiliate proposes to take with respect thereto: 

        (i)    with
respect to any Plan, any reportable event, as defined in section 4043(b) of ERISA and the regulations thereunder, for which notice thereof has not been
waived pursuant to such regulations as in effect on the date hereof; or 

        (ii)  the
taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Plan, or the receipt by IHOP, the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the
PBGC with respect to such Multiemployer Plan; or 

        (iii)  any
event, transaction or condition that could result in the incurrence of any liability by IHOP, the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA
or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of IHOP, the Company or any ERISA
Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability, penalty, excise tax or Lien, taken together with any other such liabilities or Liens then
existing, could reasonably be expected to have a Material Adverse Effect; 

        (f)    Notices from Governmental Authority—promptly, and in any event within 30 days of receipt thereof,
copies of any notice to IHOP, the Company or any Subsidiary from any Federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be
expected to have a Material Adverse Effect; 

        (g)  Supplements—promptly and in any event within 10 Business Days after the execution and delivery of any
Supplement, a copy thereof; and 

        (h)  Requested Information—with reasonable promptness, such other data and information relating to the business,
operations, affairs, financial condition, assets or properties of IHOP, the Company or any Subsidiary or relating to the ability of an Obligor to perform its obligations under the Financing Agreements
to which it is a party, as from time to time may be reasonably requested by any such holder of Notes. 

        Section 8.2.    Officer's Certificate.    Each set of financial statements delivered to a holder of Notes
pursuant to Section 8.1(a) or Section 8.1(b) hereof shall be accompanied by a certificate
of a Senior Financial Officer setting forth: 

        (a)  Covenant Compliance—the information (including detailed calculations) required in order to establish whether
IHOP and the Company were in compliance with the requirements of Section 11.3 through  Section 11.8 hereof, inclusive, during the quarterly or
annual period covered by the statements then being furnished (including with respect to
each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of
the amount, ratio or percentage then in existence); and 

        (b)  Event of Default—a statement that such officer has reviewed the relevant terms hereof and has made, or caused
to be made, under his or her supervision, a review of the transactions and conditions of IHOP, the Company and their Subsidiaries from the beginning of the quarterly or annual period covered by the
statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an
Event of Default or, if any such condition or event existed or exists (including, without limitation,
any such event or condition resulting from the failure of IHOP, the Company or any Subsidiary to comply with any Environmental Law), specifying the 

13

 

nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 

        Section 8.3.    Inspection.    Each of IHOP and the Company shall permit the representatives of each holder of
Notes that is an Institutional Investor: 

        (a)  No Default—if no Default or Event of Default then exists, at the expense of such holder and upon reasonable
prior notice to the Company, to visit the principal executive office of IHOP or the Company, to discuss the affairs, finances and accounts of IHOP, the Company and their respective Subsidiaries with
IHOP's or the Company's officers, and (with the consent of IHOP or the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of IHOP or
the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of IHOP or the Company and each Subsidiary, all at such reasonable times and as often as may be
reasonably requested in writing; and 

        (b)  Default—if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any
of the offices or properties of IHOP or the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and
to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision IHOP and the Company authorize said accountants to
discuss the affairs, finances and accounts of IHOP and the Company and their respective Subsidiaries), all at such times and as often as may be reasonably requested. 

14

   
SECTION 9.    PREPAYMENT OF THE NOTES. 

        Section 9.1.    Required Prepayments.    On October 28, 2006 and on each October 28 thereafter to
and including October 28, 2011, the Company will prepay $13,571,428.57 principal amount (or such lesser principal amount as shall then be outstanding) of the Series A Notes at par and
without payment of the Make-Whole Amount or any premium, provided that upon any partial prepayment of the Notes pursuant to  Section 9.2 or
Section 9.3 or purchase of the Notes permitted by  Section 9.6, the principal amount of each required prepayment of the Series A Notes
becoming due under this  Section 9.1 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount
of the Series A Notes is reduced as a result of such prepayment or purchase. Except pursuant to Section 9.3 and Section 13.3, the Series B Notes are not subject to required
prepayment of principal. 

        Section 9.2.    Optional Prepayments with Make-Whole Amount.    The Company may, at its option,
upon notice as provided below, prepay at any time all, or from time to time any part of, the 2002 Notes, in an amount not less than 10% of the aggregate principal amount of the 2002 Notes then
outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus the Make-Whole Amount determined for the prepayment date with respect to such principal
amount. The Company will give each holder of 2002 Notes written notice of each optional prepayment under this Section 9.2 not less than
30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date, the aggregate principal amount of the 2002 Notes of each series
to be prepaid on such date, the principal amount of each 2002 Note of each series held by such holder to be prepaid (determined in accordance with  Section 9.4), and the interest to be paid on the
prepayment date with respect to such principal amount being prepaid, and shall be accompanied by
a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the
prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of 2002 Notes a certificate of a Senior Financial
Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. 

        Section 9.3.    Change in Control.    (a) Notice of Change in Control or Control
Event. IHOP or the Company will, within five Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control or Control Event, give written
notice of such Change in Control or Control Event to each holder of 2002 Notes. If a Change in Control has occurred, such notice shall contain and constitute an offer to prepay the 2002 Notes as
described in subparagraph (b) of this Section 9.3 and shall be accompanied by the certificate described in subparagraph (f) of this  Section 9.3. 

        (b)  Offer to Prepay the Notes. The offer to prepay the 2002 Notes contemplated by subparagraph (a) of this  Section 9.3 shall be an offer to prepay, in accordance
with and subject to this  Section 9.3, all, but not less than all, the 2002 Notes held by each holder (in this case only,  "holder" in respect of any
2002 Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date
specified in such offer (the "Proposed Prepayment Date"). The Proposed Prepayment Date shall be not less than 30 days and not more than
90 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the first Business Day after the 45th day after
the date of such offer). 

        (c)  Acceptance. A holder of 2002 Notes may reject or accept the offer to prepay made pursuant to this  Section 9.3 by causing a notice of such rejection or acceptance
to be delivered to the Company not later than 15 days after receipt by
such holder of the most recent offer of prepayment. A failure by a holder of 2002 Notes to respond to an offer to prepay made pursuant to this  Section 9.3 shall be deemed to constitute an
acceptance of such offer by such holder. 

15

 

        (d)  Prepayment. Prepayment of the 2002 Notes to be prepaid pursuant to this  Section 9.3 shall be at 100% of the principal amount of such 2002 Notes, together with
interest on such 2002 Notes accrued to the date of
prepayment, plus the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The prepayment shall be made on the Proposed Prepayment Date except as
provided in subparagraph (e) of this Section 9.3. 

        (e)  Deferral Pending Change in Control. The obligation of the Company to prepay Notes pursuant to the offers required by
subparagraph (b) and accepted in accordance with subparagraph (c) of this Section 9.3 is subject to the occurrence of the Change in
Control in respect of which such offers and acceptances shall have been made. In the event that such Change in Control has not occurred on the Proposed Prepayment Date in respect thereof, the
prepayment shall be deferred until, and shall be made on, the date on which such Change in Control occurs. The Company shall keep each holder of the 2002 Notes reasonably and timely informed of
(i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur, and (iii) any determination by the Company
that efforts to effect such Change in Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this  Section 9.3 in respect of such Change in Control shall be
deemed rescinded). 

        (f)    Officer's Certificate. Each offer to prepay the 2002 Notes pursuant to this  Section 9.3 shall be accompanied by a certificate, executed by Senior Financial
Officers of IHOP and the Company and dated the date of such
offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this Section 9.3; (iii) the
principal amount of each 2002 Note offered to be prepaid; (iv) the interest that would be due on each 2002 Note offered to be prepaid, accrued to the Proposed Prepayment Date; (v) that
the conditions of this Section have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control. 

        (g)  Certain Definitions. "Change in Control" shall be deemed to have occurred if any person (as such term is used in
Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or related persons constituting a group, as such term is used in
Rule 13d-5 under the Exchange Act, (excluding, however, a group including the Current Management Group and/or their heirs or any trusts created for the benefit of any of the
foregoing individuals, provided, that at least two members of the Current Management Group in such excluded group remain in offices with responsibility
equal to or greater than the offices held by such members immediately preceding the transactions described below): 

        (i)    become
the "beneficial owners" (as such term is used in Rule 13d-3 under the Exchange Act as in effect on the date of the Closing), directly or
indirectly, of more than 50% of the total voting power of all classes then outstanding of the voting stock or membership or other equity interests of IHOP, or 

        (ii)  acquire
after the date of the Closing (x) the power to elect, appoint or cause the election or appointment of at least a majority of the members of the board of
directors of IHOP, through beneficial ownership of the capital stock of IHOP or otherwise, or (y) all or substantially all of the properties and assets of IHOP. 

        "Control Event" means: 

        (i)    the
execution by IHOP, the Company or an Affiliate of any agreement or letter of intent with respect to any proposed transaction or event or series of transactions or
events which, individually or in the aggregate, may reasonably be expected to result in a Change in Control, 

        (ii)  the
execution of any written agreement which, when fully performed by the parties thereto, would result in a Change in Control, or 

16

 

        (iii)  the
making of any written offer by any person (as such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on the date of
the Closing) or related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act as in effect on the date of the Closing) to the holders of the
outstanding equity of IHOP, which offer, if accepted by the requisite number of holders, would result in a Change in Control. 

        "Current Management Group" means and includes Richard K. Herzer, Julia A. Stewart, Alan S. Unger, Richard C. Celio, Gregg Nettleton, Mark
D. Weisberger and Anna G. Ulvan. 

        (h)  All
calculations contemplated in this Section 9.3 involving the capital stock or other equity interest of any
Person shall be made with the assumption that all convertible securities of such Person then outstanding and all convertible securities issuable upon the exercise of any warrants, options and other
rights outstanding at such time were converted at such time and that all options, warrants and similar rights to acquire shares of capital stock or other equity interest of such Person were exercised
at such time. 

        Section 9.4.    Allocation of Partial Prepayments.    In the case of each partial prepayment of Series A
Notes pursuant to Section 9.1, the principal amount of the Series A Notes to be prepaid shall be allocated among all of the
Series A Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. In the case of each
partial prepayment of 2002 Notes pursuant to Section 9.2, the principal amount of the 2002 Notes to be prepaid shall be allocated among all of
the 2002 Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment and without distinction as to
series. All prepayments made with respect to any Additional Series of Notes pursuant to any Supplement shall be allocated as therein provided. 

        Section 9.5.    Maturity; Surrender, etc.    In the case of each prepayment of 2002 Notes pursuant to this 
Section 9, the principal amount of each 2002 Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment,
together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such
principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2002 Note
paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2002 Note shall be issued in lieu of any prepaid principal amount of any 2002 Note. 

        Section 9.6.    Purchase of Notes.    IHOP and the Company will not and will not permit any Affiliate to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the terms of this
Agreement and the Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and
conditions. Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least
30 days. If the holders of more than 25% (and less than 100%) of the principal amount of the Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of
such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days
from the end of the aforementioned 30 day period. The Company will promptly cancel all Notes acquired by it, IHOP or any Affiliate pursuant to any payment, prepayment or purchase of Notes
pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes. 

        Section 9.7.    Make-Whole Amount.    The term "Make-Whole
Amount" means, with respect to any 2002 Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled 

17

 

Payments with respect to the Called Principal of such 2002 Note over the amount of such Called Principal, provided that the Make-Whole
Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: 

        "Called Principal" means, with respect to any 2002 Note, the principal of such Note that is to be prepaid pursuant to  Section 9.2 or 9.3 or has become or is declared to be immediately due and payable pursuant to  Section 13.1, as the context requires. 

        "Discounted Value" means, with respect to the Called Principal of any 2002 Note, the amount obtained by discounting all Remaining
Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial
practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2002 Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 

        "Reinvestment Yield" means, with respect to the Called Principal of any 2002 Note, 0.50% over the yield to maturity implied by
(a) the yields reported, as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated
as "Page PX1" of the Bloomberg Financial Markets Services Screen (or, if not available, any other national recognized trading screen reporting on-line intraday trading in the U.S. Treasury
securities) for actively traded on-the-run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date,
or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable, the Treasury Constant Maturity Series Yields reported, for the latest day
for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15
(519) (or any comparable successor publication) for actively traded on-the-run U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of
such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (i) converting U.S. Treasury bill quotations to bond-equivalent yields in
accordance with accepted financial practice and (ii) interpolating linearly between (1) the actively traded on-the-run U.S. Treasury security with the maturity
closest to and greater than the Remaining Average Life and (2) the actively traded on-the-run U.S. Treasury security with the maturity closest to and less than the
Remaining Average Life. 

        "Remaining Average Life" means, with respect to any Called Principal, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each
Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement
Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 

        "Remaining Scheduled Payments" means, with respect to the Called Principal of any 2002 Note, all payments of such Called Principal and
interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date,  provided that if such
Settlement Date is not a date on which interest payments are due to be made under the terms of the 2002 Notes, then the amount of
the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to  Section 9.2, 9.3
or 13.1. 

18

 

        "Settlement Date" means, with respect to the Called Principal of any 2002 Note, the date on which such Called Principal is to be prepaid
pursuant to Section 9.2 or Section 9.3 or has become or is declared to be immediately due
and payable pursuant to Section 13.1, as the context requires. 

SECTION 10.    AFFIRMATIVE
COVENANTS. 

        IHOP
and the Company, jointly and severally, covenant that so long as any of the Notes are outstanding: 

        Section 10.1.    Compliance with Law.    IHOP and the Company will and will cause each of their respective
Subsidiaries to comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and will obtain and maintain
in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective
businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect
such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

        Section 10.2.    Insurance.    IHOP and the Company will and will cause each of their respective Subsidiaries
to maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms
and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities
of established reputations engaged in the same or a similar business and similarly situated. 

        Section 10.3.    Maintenance of Properties.    IHOP and the Company will and will cause each of their
respective Subsidiaries to maintain and keep, or cause to be maintained and kept, their respective
properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times,  provided that
this Section shall not prevent IHOP, the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its
properties if such discontinuance is desirable in the conduct of its business and IHOP and the Company have concluded that such discontinuance could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. 

        Section 10.4.    Payment of Taxes and Claims.    IHOP and the Company will and will cause each of their
respective Subsidiaries to file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes,
assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before
they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of IHOP, the Company or any Subsidiary,  provided that
neither IHOP, the Company nor any Subsidiary need pay any such tax or assessment or claims if (i) the amount, applicability or
validity thereof is contested by IHOP, the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and IHOP, the Company or a Subsidiary has established adequate
reserves therefor in accordance with GAAP on the books of IHOP, the Company or such Subsidiary or (ii) the nonpayment of all such taxes and assessments in the aggregate could not reasonably be
expected to have a Material Adverse Effect. 

        Section 10.5.    Corporate Existence, etc.    Each of IHOP and the Company will at all times preserve and keep
in full force and effect its corporate existence and, subject to Section 11.2, the Company will remain a Subsidiary of IHOP. Subject to  Sections 11.2
and 11.8, IHOP and the Company will at all times preserve and keep in full force and
effect the corporate existence of each of their respective Subsidiaries (unless merged into IHOP, the Company or a Subsidiary) and all rights and franchises of 

19

 

IHOP, the Company and their respective Subsidiaries unless, in the good faith judgment of IHOP and the Company, the termination of or failure to preserve and keep in full force and effect such
corporate existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect. 

        Section 10.6.    Nature of Business.    Neither IHOP, the Company nor any Subsidiary will engage in any
business if, as a result, the general nature of the business, taken on a consolidated basis, which would then be engaged in by IHOP, the Company and their respective Subsidiaries would be
substantially changed from the general nature of the business engaged in by IHOP, the Company and their respective Subsidiaries on the date of this Agreement. 

        Section 10.7.    Notes to Rank Pari Passu.    Assuming no holder shall have entered into a subordination
agreement with respect to the Notes, the Notes and all other obligations under this Agreement of the Company are and at all times shall rank pari passu
as against the assets of the Company with all other Notes from time to time issued and outstanding hereunder without any preference among themselves and at least pari
passu in right of payment with all other present and future unsecured Debt (actual or contingent) of the Company which is not expressed to be subordinate or junior in rank to
any other unsecured Debt of the Company. 

SECTION 11.    NEGATIVE
COVENANTS. 

        IHOP
and the Company, jointly and severally, covenant that so long as any of the Notes are outstanding: 

        Section 11.1.    Transactions with Affiliates.    IHOP and the Company will not and will not permit any
Subsidiary to enter into directly or indirectly any transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind
or the rendering of any service) with any Affiliate (other than IHOP, the Company or another Subsidiary), except in the ordinary course and pursuant to the reasonable requirements of IHOP's, the
Company's or such Subsidiary's business and upon fair and reasonable terms no less favorable to IHOP, the Company or such Subsidiary than would be obtainable in a comparable arm's-length transaction
with a Person not an Affiliate. 

        Section 11.2.    Merger, Consolidation, etc.    No Obligor shall consolidate with or merge with any other
corporation or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to any Person (except that (i) IHOP or the Company may merge or
consolidate with or into, or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to, each other and (ii) any Subsidiary Guarantor may
merge or consolidate with or into, or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to, any other Obligor) unless: 

        (a)  the
successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease substantially all of the assets of
such Obligor as an entirety, as the case may be, shall be a solvent corporation organized and existing under the laws of the United States or any State thereof (including the District of Columbia),
and, if such Obligor is not such corporation, (i) such corporation shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and
observance of each covenant and condition of the Financing Agreements to which it is a party and (ii) shall have caused to be delivered to each holder of any Notes an opinion of nationally
recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable
in accordance with their terms and comply with the terms hereof; 

20

 

        (b)  immediately
after giving effect to such transaction, (i) IHOP and the Company would be permitted to incur at least $1.00 of Funded Debt pursuant to  Section 11.7(a)(iii) and (ii) no Default or Event
of Default shall have occurred and be continuing. 

No
such conveyance, transfer or lease of substantially all of the assets of an Obligor shall have the effect of releasing such Obligor or any successor corporation that shall theretofore have become
such in the manner prescribed in this Section 11.2 from its liability under this Agreement or the Notes. 

        Section 11.3.    Liens.    IHOP and the Company will not, and will not permit any Subsidiary to, directly or
indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including without limitation, any document
or instrument in respect of goods or accounts receivable) of IHOP, the Company or any such Subsidiary, whether now owned or held or hereafter acquired, or upon any income or profits therefrom, or
assign or otherwise convey any right to receive income or profits (unless it makes, or causes to be made, effective provision whereby the Financing Agreements will be equally and ratably secured with
any and all other obligations thereby secured, such security to be pursuant to an agreement reasonably satisfactory to the Required Holders and, in any such case, the Financing Agreements shall have
the benefit, to the fullest extent that, and with such priority as, the holders of the Notes may be entitled under applicable law, of an equitable Lien on such property), except: 

        (a)  Liens
for taxes, assessments or other governmental charges or levies which are not yet due and payable or the payment of which is not at the time required by
Section 10.4; 

        (b)  any
attachment or judgment Lien, unless the judgment it secures shall not, within 60 days after the entry thereof, have been discharged or execution thereof
stayed pending appeal, or shall not have been discharged within 60 days after the expiration of any such stay; 

        (c)  Liens
existing on the date of this Agreement and securing the Debt of IHOP, the Company or any Subsidiary referred to in  Schedule 6.15 including any existing Capital Leases; 

        (d)  leases
or subleases granted to others, easements, rights-of-way, zoning or other restrictions and other similar charges or encumbrances, in each
case incidental to, and not interfering with, the ordinary conduct of the business of IHOP, the Company or any Subsidiaries; provided, that such Liens
do not secure Debt of IHOP, the Company or any Subsidiary; 

        (e)  Liens
(other than any Lien imposed by ERISA) incurred or deposits made in the ordinary course of business (1) in connection with workers' compensation,
unemployment insurance, other types of social security or retirement benefits and insurance regulatory requirements or (2) to secure (or to obtain letters of credit that secure) the performance
of tenders, statutory obligations, surety bonds, appeal bonds, bids, leases (other than Capital Leases), performance bonds, purchase, construction or sales contracts and other similar obligations; 

        (f)    any
Lien created to secure all or any part of the purchase price, or to secure Debt of IHOP, the Company or any Subsidiary incurred or assumed to pay all or any part of
the purchase price or cost of construction, of property (or any improvement thereon) acquired or constructed by IHOP, the Company or a Subsidiary after the date of the Closing, including any Lien
existing on property of a Person immediately prior to its being consolidated with or merged into IHOP, the Company or a Subsidiary or its becoming a Subsidiary, or any Lien existing on any property
acquired by IHOP, the Company or any Subsidiary at the time such property is so acquired (whether or not the Debt secured thereby shall have been assumed);  provided that 

        (i)    any
such Lien shall extend solely to the item or items of such property (and/or improvement thereon) so acquired or constructed and, if required by the terms of the
instrument originally creating such Lien, other property (and/or improvement thereon) which is an improvement to or is acquired for specific use in connection with such acquired or 

21

 

constructed property (and/or improvement thereon) or which is real property being improved by such acquired or constructed property (or improvement thereon), 

        (ii)  the
principal amount of the Debt secured by any such Lien shall at no time exceed an amount equal to 100% of the fair market value (as determined in good faith by the
board of directors of IHOP, the Company or such Subsidiary incurring such Lien) of such property (and/or improvement thereon) at the time of such acquisition or construction, and 

        (iii)  any
such Lien shall be created contemporaneously with, or within the period beginning 365 days before and ending 365 days after, the acquisition or
construction of such property; 

        (g)  any
Lien renewing, extending or refunding any Lien permitted by paragraphs (c) and (f) of this  Section 11.3; provided that (i) the
principal amount of Debt secured by such Lien
immediately prior to such extension, renewal or refunding is not increased or the maturity thereof reduced, (ii) such Lien is not extended to any other property, and (iii) immediately
after such extension, renewal or refunding, no Default or Event of Default would exist; 

        (h)  Liens
on property or assets of IHOP, the Company or any Subsidiary securing Debt owing to IHOP, the Company or to a Subsidiary; and 

        (i)    other
Liens securing Debt of IHOP, the Company or any Subsidiary not otherwise permitted by paragraphs (a) through (h) of this  Section 11.3; provided the Debt secured thereby is permitted by Sections
11.4 and 11.7 hereto. 

        Section 11.4.    Priority Debt.    IHOP and the Company will not, at any time, permit Priority Debt to exceed
15% of Consolidated Adjusted Net Worth. 

        Section 11.5.    Consolidated Adjusted Net Worth.    IHOP will at all times keep and maintain Consolidated
Adjusted Net Worth at an amount not less than the sum of (i) $275,000,000 plus (ii) 25% of aggregate Consolidated Net Earnings (but only
if a positive number) for the period beginning on December 31, 2002 and ending on the date of the most recent financial statements of IHOP previously provided (or required to be provided) to
the holders pursuant to Section 8. 

        Section 11.6.    Fixed Charges Coverage Ratio.    IHOP will keep and maintain as of the end of each fiscal
quarter, the ratio of Consolidated Cash Flow to Consolidated Fixed Charges for each period of four consecutive fiscal quarters (ending on the date of determination and taken as a single accounting
period) at not less than 1.75 to 1.00. 

        Section 11.7.    Limitations on Funded Debt.    (a) In addition to, and not in limitation of, any other
restrictions in respect of Debt of IHOP, the Company or any Subsidiary hereunder, IHOP and the Company will not, and will not permit any Subsidiary to, create, issue, assume, guarantee or otherwise
incur or in any manner become liable in respect of any Funded Debt, except: 

        (i)    Funded
Debt evidenced by the Notes and the Guarantee Agreement; 

        (ii)  any
renewal, extension or refunding of any Funded Debt of IHOP, the Company or any Subsidiary outstanding as of the date of this Agreement and described on  Schedule 6.15 hereto without increase in the
principal amount thereof; and 

        (iii)  additional
Funded Debt of IHOP, the Company or any Subsidiary; provided that at the time of creation, issuance,
assumption, guarantee or incurrence thereof and immediately after giving effect thereto and to the application of the proceeds thereof, Consolidated Funded Debt shall not exceed 60% of Consolidated
Total Capitalization. 

22

 

        (b)  Any
Person which becomes a Subsidiary after the date hereof shall for all purposes of this Section 11.7 be deemed
to have created, assumed or incurred at the time it becomes a Subsidiary all Funded Debt of such Person existing immediately after it becomes a Subsidiary. 

        Section 11.8.    Sale of Assets, Etc.    Except as permitted under  Section 11.2, IHOP and the Company will not, and will not permit any of its Subsidiaries to, make any Asset Disposition unless: 

        (a)  in
the good faith opinion of IHOP, the Company or the Subsidiary making the Asset Disposition, the Asset Disposition is in exchange for consideration having a fair
market value at least equal to that of the property exchanged; 

        (b)  immediately
after giving effect to the Asset Disposition, no Default or Event of Default would exist; and 

        (c)  immediately
after giving effect to such Asset Disposition, IHOP or the Company could incur at least $1.00 of additional Funded Debt pursuant to  Section 11.7(a)(iii); and 

        (d)  the
sum of (i) the Disposition Value of the property subject to such Asset Disposition, plus (ii) the aggregate Disposition Value for all other property
that was the subject of an Asset Disposition during the period of 365 days immediately preceding such Asset Disposition would not exceed 15% of the sum of (x) Consolidated Total Assets
determined as of the end of the most recently ended calendar month preceding such Asset Disposition and (y) the aggregate Disposition Value of all property that was the subject of an Asset
Disposition described in clause (ii) above that took place on or prior to the date of determination of Consolidated Total Assets pursuant to this  Section 11.8(d). 

To
the extent that the Net Proceeds Amount consisting of cash for any Transfer to a Person other than IHOP, the Company or a Subsidiary is applied to a Debt Prepayment Application or applied or
committed to be applied to a Property Reinvestment Application within one year after such Transfer, then such Transfer (or, if less than all such Net Proceeds Amount is applied as contemplated
hereinabove, the pro rata percentage thereof which corresponds to the Net Proceeds Amount so applied), only for the purpose of determining compliance with subsection (d) of this  Section 11.8
as of any date, shall be deemed not to be an Asset Disposition. 

        Section 11.9.    Additional Guarantors.    In the event that, after the date of Closing, any Subsidiary becomes
subject to any Guaranty in favor of a provider of the primary bank credit facility of IHOP or the Company (an "Additional Bank Guaranty"), such
Subsidiary shall execute and deliver to each of the holders a Guaranty substantially identical to the Subsidiary Guarantee Agreement or shall otherwise enter into a joinder agreement with respect to
the existing Subsidiary Guarantee Agreement reasonably satisfactory in form and substance to the Required Holders. Such Subsidiary shall execute and deliver such Guaranty (or such joinder agreement)
substantially concurrently with its execution and delivery of the Additional Bank Guaranty and in no event more than 10 Business Days subsequent to the execution and delivery of such Additional Bank
Guaranty. 

SECTION 12.    EVENTS
OF DEFAULT. 

        An
"Event of Default" shall exist if any of the following conditions or events shall occur and be continuing: 

        (a)  the
Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or
at a date fixed for prepayment or by declaration or otherwise; or 

        (b)  the
Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or 

23

 

        (c)  IHOP
or the Company defaults in the performance of or compliance with any term contained in Sections 11.2 through  11.8, inclusive; or 

        (d)  IHOP
or the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and
(c) of this Section 12) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer
obtaining actual knowledge of such default and (ii) IHOP or the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a  "notice of default" and to refer specifically to this paragraph (d) of Section 12); or 

        (e)  any
representation or warranty made in writing by or on behalf of an Obligor or by any officer of an Obligor in any Financing Agreement or in any writing furnished in
connection with the transactions contemplated hereby proves to have been false or incorrect in any Material respect on the date as of which made; or 

        (f)    (i) IHOP
or the Company or any Material Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or
make-whole amount or interest on any Debt that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or
(ii) IHOP or the Company or any Material Subsidiary is in default in the performance of or compliance with any term of any evidence of any Debt in an aggregate outstanding principal amount of
at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Debt has become, or has
been declared, due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or
condition (other than the passage of time or the right of the holder of Debt to convert such Debt into equity interests), IHOP or the Company or any Material Subsidiary has
become obligated to purchase or repay Debt before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $10,000,000; or 

        (g)  IHOP
or the Company or any Material Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due,
(ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to
take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors,
(iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is
adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or 

        (h)  a
court or governmental authority of competent jurisdiction enters an order appointing, without consent by IHOP or the Company or any Material Subsidiaries, a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for
relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
winding-up or liquidation of IHOP or the Company or any Material Subsidiaries, or any such petition shall be filed against IHOP or the Company or any Material Subsidiaries and such
petition shall not be dismissed within 60 days; or 

        (i)    a
final judgment or judgments for the payment of money aggregating in excess of $10,000,000 are rendered against one or more of IHOP or the Company or any Subsidiary and
which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or 

24

 

        (j)    if
(i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or
extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be
filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified IHOP or the
Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate "amount of unfunded benefit liabilities" (within the meaning of
section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA, shall exceed $25,000,000, (iv) IHOP or the Company or any ERISA Affiliate shall have
incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) IHOP or
the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) IHOP or the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the liability of IHOP or the Company or any Subsidiary thereunder; and any such event or events described in clauses
(i) through (vi) above, either individually or together
with any other such event or events, could reasonably be expected to have a Material Adverse Effect; or 

        (k)  the
default by any Guarantor in the performance of or compliance with any term of the Guarantee Agreement or the Guarantee Agreement shall cease to be in full force and
effect with respect to any Guarantor or any Guarantor or agent therefor shall deny or disaffirm their respective obligations under the Guarantee Agreement. 

As
used in Section 12(j), the terms "employee benefit plan" and "employee welfare benefit plan" shall have the respective meanings assigned to
such terms in Section 3 of ERISA. 

SECTION 13.    REMEDIES
ON DEFAULT, ETC. 

        Section 13.1.    Acceleration.    (a) If an Event of Default with respect to the Company described in
paragraph (g) or (h) of Section 12 (other than an Event of Default described in clause (i) of paragraph (g) or
described in clause (vi) of paragraph (g) by virtue of the fact that such clause encompasses clause (i) of paragraph (g)) has occurred, all the Notes then outstanding shall
automatically become immediately due and payable. 

        (b)  If
any other Event of Default has occurred and is continuing, any holder or holders of more than 50% in principal amount of the Notes at the time outstanding may at any
time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 

        (c)  If
any Event of Default described in paragraph (a), (b) or (k) of Section 12 has occurred and
is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the
Notes held by it or them to be immediately due and payable. 

        Upon
any Notes becoming due and payable under this Section 13.1, whether automatically or by declaration, such Notes will forthwith
mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon and (y) the Make-Whole Amount determined in respect of such
principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which
are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except
as herein specifically provided for), and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are accelerated as a 

25

 

result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances. 

        Section 13.2.    Other Remedies.    If any Default or Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately due and payable under Section 13.1, the holder of any Note at the
time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement
contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or
otherwise. 

        Section 13.3.    Rescission.    At any time after any Notes have been declared due and payable pursuant to
clause (b) or (c) of Section 13.1, the holders of not less than 50% in principal amount of the Notes then outstanding, by written
notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and Make-Whole
Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and
(to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment of
amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 18, and (c) no
judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this  Section 13.3 will extend to or affect any subsequent
Event of Default or Default or impair any right consequent thereon. 

        Section 13.4.    No Waivers or Election of Remedies, Expenses, etc.    No course of dealing and no delay on the
part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder's rights, powers or remedies. No right, power or remedy
conferred by this Agreement or by any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity,
by statute or otherwise. Without limiting the obligations of the Company under Section 16, the Company will pay to the holder of each Note on
demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this  Section 13, including, without limitation,
reasonable attorneys' fees, expenses and disbursements. 

SECTION 14.    REGISTRATION;
EXCHANGE; SUBSTITUTION OF NOTES. 

        Section 14.1.    Registration of Notes.    The Company shall keep at its principal executive office a register
for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more
Notes shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and
holder thereof
for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor promptly
upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes. 

        Section 14.2.    Transfer and Exchange of Notes.    Upon surrender of any Note at the principal executive
office of the Company for registration of transfer or exchange (and in the case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly
executed by the registered holder of such Note or his attorney duly authorized in writing and accompanied by the address for notices of each transferee of such Note or part thereof), the Company shall
execute and deliver, at the Company's expense (except as provided below), one or more new Notes of the appropriate series (as requested by the holder thereof) in exchange therefor, in an 

26

 

aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in
the form of Exhibit 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note
if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes
shall not be transferred in denominations of less than $250,000; provided that if necessary to enable the registration of transfer by a holder of its
entire holding of Notes, one Note may be in a denomination of less than $250,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to
have made the representations set forth in Section 7. 

        Section 14.3.    Replacement of Notes.    Upon receipt by the Company of evidence reasonably satisfactory to it
of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and 

        (a)  in
the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of
such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $10,000,000, such Person's own unsecured agreement of indemnity shall be
deemed to be satisfactory), or 

        (b)  in
the case of mutilation, upon surrender and cancellation thereof, 

the
Company at its own expense shall execute and deliver, in lieu thereof, a new Note of like series, dated and bearing interest from the date to which interest shall have been paid on such lost,
stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 

SECTION 15.    PAYMENTS
ON NOTES. 

        Section 15.1.    Place of Payment.    Subject to  Section 15.2,
 payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in
New York, New York at the principal office of Wells Fargo Bank, National Association in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment
of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction. 

        Section 15.2.    Home Office Payment.    So long as you or your nominee shall be the holder of any Note, and
notwithstanding anything contained in Section 15.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for
principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose below your name in  Schedule A, or by such other method or at such other address as you
shall have from time to time specified to the Company in writing for such
purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after
payment or prepayment in full of any Note, you shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place
of payment most recently designated by the Company pursuant to Section 15.1. Prior to any sale or other disposition of any Note held by you or
your nominee you will, at your election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in
exchange for a new Note or Notes pursuant to Section 14.2. The Company will afford the benefits of this  Section 15.2 to any Institutional
Investor that is the direct or indirect transferee of any Note purchased by you under this Agreement and that
has made the same agreement relating to such Note as you have made in this Section 15.2. 

27

 

SECTION 16.    EXPENSES,
ETC. 

        Section 16.1.    Transaction Expenses.    Whether or not the transactions contemplated hereby are consummated,
IHOP and the Company will pay all reasonable costs and expenses (including reasonable attorneys' fees of a special counsel and, if reasonably required, local or other counsel) incurred by you and each
Other Purchaser or holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of any Financing Agreement (whether or not such
amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or
defend) any rights under any Financing Agreement or in responding to any subpoena or other legal process or informal investigative demand issued in connection with any Financing Agreement, or by
reason of being a holder of any Note, and (b) the costs and expenses, including financial advisors' fees, incurred in connection with the insolvency or bankruptcy of IHOP, the Company or any
Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the
Notes. IHOP and the Company will pay, and will save you and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than
those retained by you). 

        Section 16.2.    Survival.    The obligations of the Company under this  Section 16 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of any Financing Agreement,
and the termination of any Financing Agreement. 

SECTION 17.    SURVIVAL
OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. 

        All
representations and warranties contained herein shall survive the execution and delivery of the Financing Agreements, the purchase or transfer by you of any Note or portion thereof
or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of you or any other holder
of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of IHOP or the Company pursuant to a Financing Agreement shall be deemed representations and
warranties of IHOP or the Company, as the case may be, under such Financing Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding
between you and the Company and supersede all prior agreements and understandings relating to the subject matter hereof. 

SECTION 18.    AMENDMENT
AND WAIVER. 

        Section 18.1.    Requirements.    (a) This Agreement and the Notes may be amended, and the observance of any
term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (1) no amendment
or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6, 7 or 22 hereof, or any defined
term (as it is used therein), will be effective as to you unless consented to by you in writing, and (2) no such amendment or waiver may, without the written consent of the holder of each Note
at the time outstanding affected thereby, (i) subject to the provisions of Section 13 relating to acceleration or rescission, change the
amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Make-Whole Amount on, the
Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (iii) amend any of  Section 9, 12(a), 12(b), 13,
18 or 21. 

        (b)  Supplements. Notwithstanding anything to the contrary contained herein, IHOP and the Company may enter into any
supplement providing for the issuance of one or more series of 

28

 

Additional Notes in accordance with Sections 2.2 and 4.12 hereof without obtaining the consent of any
holder of any other series of Notes. 

        Section 18.2.    Solicitation of Holders of Notes.    

        (a)  Solicitation. The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it)
with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment,
waiver or consent in respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the
provisions of this Section 18 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or
receives the consent or approval of, the requisite holders of Notes. 

        (b)  Payment. Neither IHOP nor the Company will directly or indirectly pay or cause to be paid any remuneration, whether by
way of supplemental or additional interest, fee or otherwise, or grant any security, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes or any
waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted, on the same terms, ratably to each holder of Notes
then outstanding even if such holder did not consent to such waiver or amendment. 

        Section 18.3.    Binding Effect, etc.    Any amendment or waiver consented to as provided in this  Section 18 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon IHOP and the Company
without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of
Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between IHOP or the Company and the holder of any Note nor any delay in exercising any rights
hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. As used herein, the term "this Agreement" and references
thereto shall mean this Agreement as it may from time to time be amended or supplemented. 

        Section 18.4.    Notes Held by IHOP or the Company, etc.    Solely for the purpose of determining whether the
holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes,
or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by IHOP or the Company or any of their respective Affiliates shall be deemed not to be outstanding. 

SECTION 19.    NOTICES.

        All
notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a
recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery
service (with charges prepaid). Any such notice must be sent: 

        (i)    if
to you or your nominee, to you or it at the address specified for such communications in Schedule A, or at such
other address as you or it shall have specified to the Company in writing, 

        (ii)  if
to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or 

29

 

        (iii)  if
to IHOP or the Company, to the Company at its address set forth at the beginning hereof to the attention of Vice President—Finance, or at such other
address as the Company shall have specified to the holder of each Note in writing. 

Notices
under this Section 19 will be deemed given only when actually received. 

SECTION 20.    REPRODUCTION
OF DOCUMENTS. 

        This
Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents
received by you at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to you, may be reproduced by you
by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and you may destroy any original document so reproduced. IHOP and the Company agree and
stipulate that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the
original is in existence and whether or not such reproduction was made by you in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence. This Section 20 shall not prohibit the Company or any other holder of Notes from contesting any such
reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 

SECTION 21.    CONFIDENTIAL
INFORMATION. 

        For
the purposes of this Section 21, "Confidential Information" means information
delivered to you by or on behalf of IHOP, the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement,  provided that such term does not
include information that (a) was publicly known or otherwise known to you prior to the time of such disclosure,
(b) subsequently becomes publicly known through no act or omission by you or any person acting on your behalf, (c) otherwise becomes known to you other than through disclosure by IHOP,
the Company or any Subsidiary or (d) constitutes financial statements delivered to you under Section 8.1 that are otherwise publicly
available. You will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by you in good faith to protect confidential information of third parties
delivered to you, provided that you may deliver or disclose Confidential Information to (i) your directors, officers, employees, agents,
attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by your Notes), (ii) your financial advisors and other
professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 21,
(iii) any other holder of any Note, (iv) any Institutional Investor to which you sell or offer to sell such Note or any part thereof or any participation therein (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (v) any Person
from which you offer to purchase any security of an Obligor (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this  Section 21), (vi) any federal or state regulatory authority having jurisdiction over you, (vii) the National Association of
Insurance Commissioners or any similar organization, or any nationally recognized rating agency that requires access to information about your investment portfolio or (viii) any other Person to
which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to you, (x) in response to any subpoena or
other legal process, (y) in connection with any litigation to which you are a party or (z) if an Event of Default has occurred and is continuing, to the extent you may reasonably
determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under the Financing Agreements. In the event that you or any
of your representatives (including any directors, officers, financial advisers, legal counsel or other professional advisors) receives a subpoena, interrogatory or other request for 

30

 

Confidential Information or reasonably believes that you are legally required to disclose any Confidential Information to any Person described in clause (vi), (vii) or
(viii) above, you shall promptly provide the Company with written notice of any such request or requirement unless you are prevented from providing such notice by law, rule, regulation or court
order applicable to you. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this  Section 21 as though it were a
party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a
Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will
enter into an agreement with the Company embodying the provisions of this Section 21. 

SECTION 22.    SUBSTITUTION
OF PURCHASER. 

        You
shall have the right to substitute any one of your Affiliates as the purchaser of the Notes that you have agreed to purchase hereunder, by written notice to the Company, which notice
shall be signed by both you and such Affiliate, shall contain such Affiliate's agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect
to it of the representations set forth in Section 7. Upon receipt of such notice, wherever the word "you" is used in this Agreement (other than
in this Section 22), such word shall be deemed to refer to such Affiliate in lieu of you. In the event that such Affiliate is so substituted as a
purchaser hereunder and such Affiliate thereafter transfers to you all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, wherever the word "you" is used
in this Agreement (other than in this Section 22), such word shall no longer be deemed to refer to such Affiliate, but shall refer to you, and
you shall have all the rights of an original holder of the Notes under this Agreement. 

SECTION 23.    MISCELLANEOUS. 

        Section 23.1.    Successors and Assigns.    All covenants and other agreements contained in the Financing
Agreements by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note)
whether so expressed or not. 

        Section 23.2.    Payments Due on Non-Business Days.    Anything in any Financing Agreement to the
contrary notwithstanding, any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding
Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day. 

        Section 23.3.    Severability.    Any provision of any Financing Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 

        Section 23.4.    Construction.    Each covenant contained herein shall be construed (absent express provision
to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether
such action is taken directly or indirectly by such Person. 

        Section 23.5.    Counterparts.    This Agreement may be executed in any number of counterparts, each of which
shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of
the parties hereto. 

        Section 23.6.    Governing Law.    This Agreement shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of
the laws of a jurisdiction other than such State. 

*    *    *    *    *

31

 

        If
you are in agreement with the foregoing, please sign the form of agreement on the accompanying counterpart of this Agreement and return it to the Company, whereupon the foregoing
shall become a binding agreement among you, IHOP and the Company. 

	 	 	Very truly yours,
	 	 	 	 	 	 
	 	 	IHOP Corp.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  JULIA A. STEWART      

	 	 	 	 	Name:	Julia A. Stewart
	 	 	 	 	Title:	President
	 	 	 	 	 	 
	 	 	 	 	 	 
	

 	
 	

INTERNATIONAL HOUSE OF PANCAKES, INC.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  JULIA A. STEWART      

	 	 	 	 	Name:	Julia A. Stewart
	 	 	 	 	Title:	President

32

Accepted, separately for each of the respective institutions named below, as of October 28, 2002: 

	 	 	AIG ANNUITY INSURANCE COMPANY

THE VARIABLE ANNUITY LIFE INSURANCE COMPANY

AMERICAN GENERAL ASSURANCE COMPANY

MERIT LIFE INSURANCE CO.
	 	 	 	 	 	 	 	 
	 	 	By:	 	AIG Global Investment Corp., investment adviser
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/  GERALD F. HERMAN      

	 	 	 	 	 	 	Name:	Gerald F. Herman
	 	 	 	 	 	 	Title:	Vice President
	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 

Accepted as of October 28, 2002: 

	 	 	NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  MARK W. POEPPELMAN      

	 	 	 	 	Name:	Mark W. Poeppelman
	 	 	 	 	Title:	Associate Vice President

Accepted
as of October 28, 2002: 

	 	 	NATIONWIDE LIFE INSURANCE COMPANY
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  MARK W. POEPPELMAN      

	 	 	 	 	Name:	Mark W. Poeppelman
	 	 	 	 	Title:	Associate Vice President

Accepted
as of October 28, 2002: 

	 	 	NATIONWIDE LIFE INSURANCE COMPANY OF AMERICA
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  MARK W. POEPPELMAN      

	 	 	 	 	Name:	Mark W. Poeppelman
	 	 	 	 	Title:	Associate Vice President

Accepted
as of October 28, 2002: 

	 	 	UNITED OF OMAHA LIFE INSURANCE COMPANY
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  EDWIN H. GARRISON, JR.      

	 	 	 	 	Name:	Edwin H. Garrison, Jr.
	 	 	 	 	Title:	First Vice President

Accepted
as of October 28, 2002: 

	 	 	PHOENIX LIFE INSURANCE COMPANY
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  JOHN RUBEN FLORES      

	 	 	 	 	Name:	John Ruben Flores
	 	 	 	 	Title:	Vice President

Accepted
as of October 28, 2002: 

	 	 	MODERN WOODMEN OF AMERICA
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  CLYDE C. SCHOECK      

	 	 	 	 	Name:	Clyde C. Schoeck
	 	 	 	 	Title:	President

Accepted
as of October 28, 2002: 

	 	 	MONY LIFE INSURANCE COMPANY OF AMERICA
	 	 	 	 	 	 
	 	 	By:	 	MONY Capital Management, Inc.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  SUZANNE E. WALTON      

	 	 	 	 	Name:	Suzanne E. Walton
	 	 	 	 	Title:	Authorized Agent

SCHEDULE A

(to Note Purchase Agreement) 

 
  INFORMATION RELATING TO PURCHASERS    
  

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	AIG ANNUITY INSURANCE COMPANY

c/o AIG Global Investment Corporation

Attention: Debt Private Placements

175 Water Street, 24th Floor

New York, New York 10038

Telephone Number: (212) 458-2068

Facsimile Number: (212) 458-2233	 	$25,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

ABA
#011000028

State Street Bank and Trust Company

Boston, Massachusetts 02101

Re: AIG Annuity Insurance Company

AC-7215-132-7

OBI=PPN # and description of payment

Fund Number PA WE1B 

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

AIG
Annuity Insurance Company and PA WE1B

c/o State Street Bank Corporation

Insurance Services

801 Pennsylvania

Kansas City, Missouri 64105

Facsimile Number: (816) 691-3619 

Duplicate
payment notices and all other correspondences to be addressed to the address as first provided above with a copy to: 

AIG
Global Investment Corp.

Legal Department—Investment Management

2929 Allen Parkway, Suite A36-01

Houston, Texas 77019-2155

Facsimile Number: (713) 831-2328 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 75-0770838 

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	THE VARIABLE ANNUITY LIFE INSURANCE COMPANY

c/o AIG Global Investment Corporation

Attention: Debt Private Placements

175 Water Street, 24th Floor

New York, New York 10038

Telephone Number: (212) 458-2068

Facsimile Number: (212) 458-2233	 	$15,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

ABA
#011000028

State Street Bank and Trust Company

Boston, Massachusetts 02101

Re: The Variable Annuity Life Insurance Company

AC-0125-821-9

OBI=PPN Number and description of payment

Fund Number PA 54 

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

The
Variable Annuity Life Insurance Company and PA 54

c/o State Street Bank Corporation

Insurance Services

801 Pennsylvania

Kansas City, Missouri 64105

Facsimile Number: (816) 691-3619 

Duplicate
payment notices and all other correspondences to be addressed at the address first provided above with a copy to: 

AIG
Global Investment Corporation

Legal Department—Investment Management

2929 Allen Parkway, Suite A36-01

Houston, Texas 77019-2155

Facsimile Number: (713) 831-2328 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 74-1625348 

A-2

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	AMERICAN GENERAL ASSURANCE COMPANY

c/o AIG Global Investment Corporation

Attention: Debt Private Placements

175 Water Street, 24th Floor

New York, New York 10038

Telephone Number: (212) 458-2068

Facsimile Number: (212) 458-2233	 	$3,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

ABA
#011000028

State Street Bank and Trust Company

Boston, Massachusetts 02101

Re: American General Assurance Company

AC-6938-708-2

OBI=PPN # and description of payment

Fund Number PA 86 

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

American
General Assurance Company and PA 86

c/o State Street Bank Corporation

Insurance Services

801 Pennsylvania

Kansas City, Missouri 64105

Facsimile Number: (816) 691-3619 

Duplicate
payment notices and all other correspondences to be addressed as first provided above with a copy to: 

AIG
Global Investment Corp.

Legal Department—Investment Management

2929 Allen Parkway, Suite A36-01

Houston, Texas 77019-2155

Facsimile Number: (713) 831-2328 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 36-167770 

A-3

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	MERIT LIFE INSURANCE CO.

c/o AIG Global Investment Corporation

Attention: Debt Private Placements

175 Water Street, 24th Floor

New York, New York 10038

Telephone Number: (212) 458-2068

Facsimile Number: (212) 458-2233	 	$2,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

ABA
#011000028

State Street Bank and Trust Company

Boston, Massachusetts 02101

Re: Merit Life Insurance Co.

AC-4653-082-0

OBI=PPN Number and description of payment

Fund Number PA 20 

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

Merit
Life Insurance Co. and PA 20

c/o State Street Bank Corporation

Insurance Services

801 Pennsylvania

Kansas City, Missouri 64105

Facsimile Number: (816) 691-3619 

Duplicate
payment notices and all other correspondences to be addressed at the address first provided above with a copy to: 

AIG
Global Investment Corporation

Legal Department—Investment Management

2929 Allen Parkway, Suite A36-01

Houston, Texas 77019-2155

Facsimile Number: (713) 831-2328 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 35-1005090 

A-4

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	UNITED OF OMAHA LIFE INSURANCE COMPANY

Mutual of Omaha Plaza

Omaha, Nebraska 68175-1011

Attention: 4-Investment Loan Administration	 	$15,000,000	 	$0

Payments

All
principal and interest payments on the Notes shall be made by wire transfer of immediately available funds to: 

JPMorgan
Chase Bank

ABA #021-000-021

Private Income Processing 

for
credit to: United of Omaha Life Insurance Company

Account Number 900-9000200

a/c G07097

PPN: 459668 B* 9

Interest Amount:                       

Principal Amount:                    

Notices 

All
notices of payments, on or in respect of the Notes and written confirmation of each such payment, corporate actions and reorganization notifications to: 

JPMorgan
Chase Bank

14201 Dallas Parkway, 13th Floor

Dallas, TX 75254-2917

Attention: Income Processing-G. Ruiz

a/c: G07097 

All
other notices and communications (i.e., quarterly/annual reports, tax filings, modifications, waivers regarding the indenture) to be addressed as
first provided above. 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 47-0322111 

A-5

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities	 	$7,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

The
Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Life and Annuity Insurance Company

Attention: P&I Department

PPN #459668 B* 9

Security Description:                        

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

Nationwide
Life and Annuity Insurance Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P&I Department 

With
a copy to: 

Nationwide
Life and Annuity Insurance Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting 

All
notices and communications other than those in respect to payments to be addressed as first provided above. 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 31-1000740 

A-6

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	NATIONWIDE LIFE INSURANCE COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities

Facsimile: (614) 249-4553	 	$4,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

The
Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Life Insurance Company

Attention: P&I Department

PPN #459668 B* 9

Security Description:                        

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

Nationwide
Life Insurance Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P&I Department 

With
a copy to: 

Nationwide
Life Insurance Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting 

All
notices and communications other than those in respect to payments to be addressed as first provided above. 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 31-4156830 

A-7

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	NATIONWIDE LIFE INSURANCE COMPANY OF AMERICA

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities

Facsimile: (614) 249-4553	 	$4,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

The
Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Life Insurance Company of America

Attention: P&I Department

PPN #459668 B* 9

Security Description:                        

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

Nationwide
Life Insurance Company of America

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P&I Department 

With
a copy to: 

Nationwide
Life Insurance Company of America

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting 

All
notices and communications other than those in respect to payments to be addressed as first provided above. 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 31-4156830 

A-8

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	MONY LIFE INSURANCE COMPANY OF AMERICA

c/o MONY Capital Management, Inc.

1740 Broadway

New York, New York 10019

Attention: Securities Custody Division

M.D. 6-39A

Facsimile Number: (212) 708-2152	 	$15,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.20%
Senior Notes, Series A, due October 28, 2012, PPN 459668 B* 9, principal, premium or interest") to: 

JP
Morgan Chase Manhattan Bank

ABA #021000021

For credit to Private Income Processing Account No. 900 9000 200

For further credit to account G52964 

Notices 

All
notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

JP
Morgan Chase Manhattan Bank

14201 N. Dallas Parkway

13th Floor

Dallas, Texas 75254-2917

Facsimile Number: (469) 477-1904 

Duplicate
payment notices and all other correspondences to be addressed to: 

MONY
Life Insurance Company of America

c/o MONY Capital Management, Inc.

1740 Broadway

New York, New York 10019

Attention: Securities Custody Division

M.D. 6-39A

Facsimile Number: (212) 708-2152 

Name
of Nominee in which Notes are to be issued: J. ROMEO & CO. 

Taxpayer
I.D. Number: 86-0222062 

A-9

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	PHOENIX LIFE INSURANCE COMPANY

c/o Phoenix Investment Partners

56 Prospect Street

Hartford, Connecticut 06115

Attention: Private Placements Department

Phone: (860) 403-5519

Fax: (860) 403-7248	 	$5,000,000	 	$0

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds to: 

JPMorgan
Chase

New York, New York

ABA #021 000 021

Account Number: 900 9000 200

Account Name: Income Processing

Reference: G05123, Phoenix Life Insurance, PPN=459668 B* 9, OBI=[Name of Issuer],

RATE=            %, DUE=                        (include Company name,
principal and interest breakdown and premium, if any) 

Notices 

All
notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above. All legal correspondence should be
addressed: 

Phoenix
Life Insurance Company

One American Row

Hartford, Connecticut 06115

Attention: John Mulrain, Legal Department

Phone: (860) 403-5799

Fax: (860) 403-7203 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 06-0493340 

A-10

 

	Name and Address of Purchaser
 
	 	Principal Amount

of Series A Notes

to be Purchased
	 	Principal Amount

of Series B Notes

to be Purchased

	MODERN WOODMEN OF AMERICA

1701 First Avenue

Rock Island, Illinois 61201

Attention: Investment Department	 	$0	 	$5,000,000

Payments

All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as "International House of Pancakes, Inc. 5.88%
Senior Notes, Series B, due October 28, 2012, PPN 459668 B@ 7, principal, premium or interest") to: 

The
Northern Trust Company

50 South LaSalle Street

Chicago, Illinois 60675

ABA #071-000-152

Account Name: Modern Woodmen of America

Account Number 84352 

Notices 

All
notices and communications to be addressed as first provided above, except notices with respect to payments and written confirmation of each such payment, to be addressed Attention: Investment
Accounting Department 

Name
of Nominee in which Notes are to be issued: None 

Taxpayer
I.D. Number: 36-1493430 

A-11

SCHEDULE B

(to Note Purchase Agreement) 

 
  DEFINED TERMS    
  

        As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: 

        "Additional Bank Guaranty" is defined in Section 11.9. 

        "Additional Notes" is defined in Section 2.2. 

        "Additional Purchasers" means the purchasers of Additional Notes. 

        "Additional Subsidiary Guarantees" shall mean and include any Guaranty delivered by any Subsidiary Guarantor (now or at any time hereafter
including pursuant to Section 11.9) which guaranties Debt of IHOP or of the Company, the beneficiaries of which are or become a party to, and thereby agree to undertake and perform the duties,
rights and obligations of a party under, the Amended and Restated Intercreditor Agreement. 

        "Affiliate" means, at any time, and with respect to any Person, (a) any other Person that at such time directly or indirectly
through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or holding, directly or indirectly,
10% or more of any class of voting or equity interests of IHOP, the Company or any Subsidiary or any corporation of which IHOP, the Company and their Subsidiaries beneficially own or hold, in the
aggregate, directly or indirectly, 10% or more of any class of voting or equity interests. As used in this definition, "Control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless
the context otherwise clearly requires, any reference to an "Affiliate" is a reference to an Affiliate of IHOP or the Company. 

        "Amended and Restated Intercreditor Agreement" means the Amended and Restated Intercreditor Agreement dated as of October 28, 2002
among the parties thereto, as amended from time to time. 

        "Asset Disposition" means any Transfer except: 

        (a)  any
Transfer from a Subsidiary to IHOP, to the Company or to a Wholly-Owned Subsidiary so long as immediately before and immediately after the consummation of any such
Transfer and after giving effect thereto, (1) IHOP and the Company would be permitted by the provisions of Section 11.7(a)(iii) to incur
at least $1.00 of additional Funded Debt and (2) no Default or Event of Default would exist; 

        (b)  any
Transfer (1) of operating restaurants in accordance with the Company's ordinary course franchising operations pursuant to the reasonable business judgment of
the Company in accordance with past practice or (2) made in the ordinary course of business of property that is either inventory held for rent or sale or equipment, fixtures, supplies or
materials no longer required in the operation of the business of the Company or any of its Subsidiaries or that is obsolete; and 

        (c)  any
Transfer by IHOP, the Company or any Subsidiary where the assets disposed of were disposed of for Fair Market Value (taking into consideration the rental rate to be
paid by IHOP, the Company or such Subsidiary in connection with the Transfer and leaseback of the assets so disposed of) and were constructed or acquired following the date of this Agreement and are
immediately leased back from the purchaser thereof by IHOP, the Company or any Subsidiary; provided, that (i) such assets then being sold and
leased back as contemplated in this clause (c) shall have been acquired not more than three years prior to the sale and leaseback transaction, and (ii) at the time of any such
transaction and immediately after giving effect thereto, no Default or Event of Default would exist. 

        "Business Day" means (a) for the purposes of Section 9.7 only, any day other
than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed, 

 

and (b) for the purposes of any other provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in Los Angeles, California or New York, New York,
are required or authorized to be closed. 

        "Capital Lease" means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an
asset and the incurrence of a liability in accordance with GAAP. 

        "Closing" is defined in Section 3. 

        "Code" means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from
time to time. 

        "Company" means International House of Pancakes, Inc., a Delaware corporation. 

        "Confidential Information" is defined in Section 21.

        "Consolidated Adjusted Net Worth" means as of the date of any determination thereof, the amount of consolidated stockholders equity of
IHOP, the Company and their respective Subsidiaries, as determined in the most recent financial statement of IHOP previously provided to the holders pursuant to  Section 8, plus (but without duplication and only to the extent excluded or deducted from
stockholders' equity) (i) any "LIFO Reserve" referred to in the most recent financial statement of IHOP previously provided to the holders
pursuant to Section 8, and (ii) deferred income taxes. 

        "Consolidated Cash Flow" for any period means the sum of (a) Consolidated Net Earnings during such period  plus (to the extent deducted in determining Consolidated
Net Earnings) (b) provisions for Federal, State and local income taxes for the period,
(c) depreciation and amortization taken during such period and (d) Consolidated Fixed Charges during such period; provided that, in the
event any Person (or the assets thereof) is acquired by IHOP, the Company or any Subsidiary (whether by merger, consolidation, asset or stock acquisition or otherwise) at any time during the period of
calculation, such acquisition shall be deemed to have been made on the first day of such calculation period. 

        "Consolidated Fixed Charges" means, with respect to any period, the sum of (i) Consolidated Interest Expense for such period  plus (ii) Lease Rentals for such
period, determined on a consolidated basis for IHOP, the Company and their respective Subsidiaries. 

        "Consolidated Funded Debt" means as of the date of any determination thereof, all Funded Debt of IHOP, the Company and their respective
Subsidiaries, determined on a consolidated basis eliminating intercompany items. 

        "Consolidated Interest Expense" means, for any period, the interest expense of IHOP, the Company and their respective Subsidiaries
(including imputed interest in respect of Capital Leases), in respect of all Debt, and all debt discount and expense amortized or required to be amortized in the determination of Consolidated Net
Earnings for such period. 

        "Consolidated Net Earnings" for any period means the gross revenues of IHOP, the Company and their respective Subsidiaries for such period
less all expenses and other proper charges, determined on a consolidated basis in accordance with GAAP, but excluding in any event: 

        (a)  any
extraordinary gains or losses; 

        (b)  net
earnings and losses of any Subsidiary accrued prior to the date it became a Subsidiary; 

        (c)  net
earnings and losses of any corporation (other than a Subsidiary), substantially all the assets of which have been acquired in any manner by IHOP, the Company or any
Subsidiary, realized by such corporation prior to the date of such acquisition; 

B-2

 

        (d)  net
earnings and losses of any corporation (other than a Subsidiary) with which IHOP, the Company or a Subsidiary shall have consolidated or which shall have merged into
or with IHOP, the Company or a Subsidiary and realized prior to the date of such consolidation or merger; 

        (e)  net
earnings of any business entity (other than a Subsidiary) in which IHOP, the Company or any Subsidiary has an ownership interest unless such net earnings shall have
actually been received by IHOP, the Company or such Subsidiary in the form of cash distributions; 

        (f)    any
portion of the net earnings of any Subsidiary (other than the Company) which for any reason is unavailable for payment of dividends to IHOP, the Company or any other
Subsidiary; 

        (g)  earnings
resulting from any reappraisal, revaluation or write-up of assets; and 

        (h)  any
gains or losses attributable to goodwill or other intangibles. 

        "Consolidated Total Assets" means, as of the date of any determination thereof, total assets of IHOP, the Company and their respective
Subsidiaries determined on a consolidated basis in accordance with GAAP. 

        "Consolidated Total Capitalization" means, as of the date of any determination thereof, the sum of (a) Consolidated Funded Debt  plus (b) Consolidated Adjusted
Net Worth. 

        "Debt" with respect to any Person means, at any time, without duplication, 

        (a)  its
liabilities for borrowed money; 

        (b)  its
liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including
all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 

        (c)  all
liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases but only to the extent such liabilities exceed an amount equal to 95%
of accounts receivable under direct financing leases; 

        (d)  all
liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for
such liabilities); provided that, if such obligation has not been assumed or become the legal liability of such Person, the amount of the liability
shall be deemed to be in an amount not to exceed the Fair Market Value of the property to which the Lien relates; and 

        (e)  any
Guaranty of such Person or letter of credit of such Person, with respect to liabilities of a type described in any of clauses (a) through (d) hereof. 

Debt of any Person shall include all obligations of such Person of the character described in clauses (a) through (e) to the extent such
Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. "Debt" of any Person
shall not include (i) such obligations of the character described in clauses (a) through (d) above, if owed or made by IHOP, the Company or any Subsidiary to IHOP, the Company or
any Subsidiary or (ii) any unfunded obligations which may now or hereafter exist in respect of pension, retirement or other similar plans of IHOP, the Company or any Subsidiary 

        "Debt Prepayment Application" means, with respect to any Transfer of property constituting an Asset Disposition, the application by the
Company of cash in an amount equal to the Net Proceeds Amount, or any portion thereof, with respect to such Transfer to pay, on a pro rata basis based
on the unpaid principal amount of the respective instrument evidencing such Senior Debt (other than Senior Debt
owing to IHOP, the Company, any of its Subsidiaries or any Affiliate); provided, that in the event such Senior Debt would otherwise permit the
reborrowing of such Debt by the Company, the 

B-3

 

commitment to relend such Debt shall be permanently reduced by the amount of such Debt Prepayment Application. 

        "Default" means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both,
become an Event of Default. 

        "Default Rate" means that rate of interest that is the greater of (i) 2.00% per annum above the rate of interest stated in
clause (a) of the first paragraph of the Notes or (ii) 2.00% over the rate of interest publicly announced by Wells Fargo Bank, National Association in New York, New York as its "base" or
"prime" rate. 

        "Disposition Value" means, at any time, with respect to any property 

        (a)  in
the case of property that does not constitute Subsidiary Stock, the book value thereof, valued at the time of such disposition in good faith by IHOP or the Company,
and 

        (b)  in
the case of property that constitutes Subsidiary Stock, an amount equal to that percentage of book value of the assets of the Subsidiary that issued such Subsidiary
Stock as is equal to the percentage that the book value of such Subsidiary Stock represents of the book value of all of the outstanding capital stock or similar equity interests of such Subsidiary
(assuming, in making such calculations, that all Securities convertible into such capital stock or similar equity interests are so converted and giving full effect to all transactions that would occur
or be required in connection with such conversion) determined at the time of the disposition thereof, in good faith by IHOP or the Company. 

        "Environmental Laws" means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials
into the environment, including but not limited to those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated
thereunder from time to time in effect. 

        "ERISA Affiliate" means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company
under section 414 of the Code. 

        "Event of Default" is defined in Section 12. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Fair Market Value" means, as of any date of determination and with respect to any property, the sale value of such property that would be
realized in an arm's-length sale at such time between an informed and willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell). 

        "Financing Agreements" shall mean and include this Agreement, the Other Agreements, the Notes and the Guarantee Agreement, in each case as
amended or modified from time to time. 

        "Funded Debt" shall mean all Debt which would, in accordance with GAAP, constitute long term debt including, but without limitation:
(a) any Debt with a maturity of more than one year after the creation of such Debt, (b) any Debt outstanding under a revolving credit or similar agreement providing for borrowings (and
renewals and extensions thereof) which pursuant to its terms would constitute long-term Debt in accordance with GAAP, (c) any Capital Lease obligation but only to the extent such
obligation exceeds an amount equal to 95% of accounts receivable under direct financing leases and (d) any Guaranty with respect to Funded Debt of another Person. Notwithstanding anything to
the contrary contained herein, any Debt outstanding under a revolving credit or similar agreement 

B-4

 

providing for borrowings which is paid down for a period of 30 consecutive days during any 12-month period (and not merely refinanced with a short-term credit facility) will
not be deemed to constitute Funded Debt. 

        "GAAP" means generally accepted accounting principles as in effect from time to time in the United States of America. 

        "Governmental Authority" means 

        (a)  the
government of 

        (i)    the
United States of America or any State or other political subdivision thereof, or 

        (ii)  any
jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or
any Subsidiary, or 

        (b)  any
entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. 

        "Guarantee Agreement" shall mean and include (i) the Subsidiary Guarantee Agreement and (ii) the Parent Guarantee Agreement. 

        "Guarantors" shall mean and include each of IHOP, IHOP Properties and IHOP Realty. 

        "Guaranty" means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable
instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or
indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person: 

        (a)  to
purchase such indebtedness or obligation or any property constituting security therefor; 

        (b)  to
advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance
sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation; 

        (c)  to
lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other
Person to make payment of the indebtedness or obligation; or 

        (d)  otherwise
to assure the owner of such indebtedness or obligation against loss in respect thereof. 

In
any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the amount of liability of any Person attributable to such Guaranty shall be equal to the maximum amount
for which such Person could be liable under such Guarantee. 

        "Hazardous Material" means any and all pollutants, toxic or hazardous wastes or any other substances that might pose a hazard to health or
safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release,
discharge, spillage, seepage, or filtration of which is or shall be restricted, prohibited or penalized by any applicable law (including, without limitation, asbestos, urea formaldehyde foam
insulation and polychlorinated biphenyls). 

        "holder" means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company
pursuant to Section 14.1. 

B-5

 

        "IHOP" means IHOP Corp., a Delaware corporation. 

        "IHOP Properties" means IHOP Properties, Inc., a California corporation. 

        "IHOP Realty" means IHOP Realty Corp., a Delaware corporation. 

        "Institutional Investor" means (a) any original purchaser of a Note, (b) any holder of a Note holding more than 10% of the
aggregate principal amount of the Notes then outstanding, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company,
any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form. 

        "Lease Rentals" means, with respect to any period, the sum of the rentals and other obligations required to be paid during such period by
IHOP, the Company or any Subsidiary as lessee under all leases of real or personal property (other than Capital Leases), excluding any amount required to be paid by the lessee on the count of
maintenance and repairs, insurance, taxes, assessments, water rates and similar charges, provided, that, if at the date of determination, any such
rental or other obligations are contingent or not otherwise definitely determinable by the terms of the related lease, the amount of such obligations (i) shall be assumed to be equal to the
amount of such obligations for the period of 12 consecutive calendar months immediately preceding the date of determination or (ii) if the related lease was not in effect during such preceding
12-month period, shall be the amount estimated by a Senior Financial Officer of IHOP or the Company on a reasonable basis in good faith. 

        "Lien" means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or
title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or
asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements); provided that the
rights of franchisees in their capacities as franchisees to use and possession of certain properties and rights pursuant to franchise documentation entered into by IHOP or the Company or any of their
Subsidiaries in the ordinary course of business shall not be deemed to constitute a Lien for purposes hereof. 

        "Make-Whole Amount" is defined in Section 9.7. 

        "Material" means material in relation to the business, operations, affairs, financial condition, assets, properties, or prospects of IHOP,
the Company and their respective Subsidiaries taken as a whole. 

        "Material Adverse Effect" means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or
properties of IHOP, the Company and their respective Subsidiaries taken as a whole, or (b) the ability of IHOP or the Company to perform its obligations under this Agreement and the Notes, or
(c) the validity or enforceability of any Financing Agreement. 

        "Material Subsidiary" means, any Subsidiary which either (i) had revenues for the immediately preceding period of four full fiscal
quarters (taken as a single accounting period) representing 10% or more of Consolidated Net Earnings for such twelve month period or (ii) which had assets (determined as of the end of the
immediately preceding fiscal quarter) in excess of 10% of Consolidated Total Assets as of said quarter end. 

        "Memorandum" is defined in Section 6.3. 

        "Multiemployer Plan" means any Plan that is a "multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA). 

        "Net Proceeds Amount" means, with respect to any Transfer of any property by any Person, an amount equal to the  difference of 

B-6

 

        (a)  the
aggregate amount of the consideration (valued at the Fair Market Value of such consideration at the time of the consummation of such Transfer) allocated to such
Person in respect of such Transfer, net of any applicable taxes incurred in connection with such Transfer, minus

        (b)  all
ordinary and reasonable out-of-pocket costs and expenses actually incurred by such Person in connection with such Transfer. 

        "Notes" is defined in Section 1. 

        "Obligors" shall mean and include the Company and each of the Guarantors. 

        "Officer's Certificate" means a certificate of a Senior Financial Officer or of any other officer of IHOP or the Company whose
responsibilities extend to the subject matter of such certificate. 

        "Other Agreements" is defined in Section 2.1. 

        "Other Purchasers" is defined in Section 2.1. 

        "Parent Guarantee Agreement" shall mean the Parent Guarantee Agreement dated as of October 28, 2002 of IHOP, as amended or modified
from time to time. 

        "PBGC" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto. 

        "Person" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof. 

        "Plan" means an "employee benefit plan" (as defined in section 3(3) of ERISA) that is or, within the preceding five years, has been
established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the
Company or any ERISA Affiliate may have any liability. 

        "Priority Debt" means the sum, without duplication, of (i) Debt of IHOP or the Company secured by Liens not otherwise permitted by
clauses (a) through (h) of Section 11.3 and (ii) all Debt of Subsidiaries other than the Company (other than to IHOP, the
Company or another Wholly-Owned Subsidiary); provided that notwithstanding anything to the contrary herein, neither the Guarantee Agreement nor any
Additional Subsidiary Guarantee shall be deemed to constitute Priority Debt for the purposes hereof. 

        "property" or "properties" means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate. 

        "Property Reinvestment Application" means, with respect to any Transfer of property constituting an Asset Disposition, the application of
an amount equal to the Net Proceeds Amount with respect to such Transfer to the acquisition by the Company or any of its Subsidiaries of operating assets for the Company or any Subsidiary to be used
in the principal business of such Person. 

        "QPAM Exemption" means Prohibited Transaction Class Exemption 84-14 issued by the United States Department of Labor. 

        "Required Holders" means, at any time, the holders of at least 51% in principal amount of the Notes at the time outstanding (exclusive of
Notes then owned by IHOP, the Company or any Affiliates). 

        "Responsible Officer" means any Senior Financial Officer and any other officer of IHOP or the Company with responsibility for the
administration of the relevant portion of this Agreement. 

        "Securities Act" means the Securities Act of 1933, as amended from time to time. 

B-7

 

        "Security" has the same meaning as Section 2(1) of the Securities Act. 

        "Senior Debt" shall mean and include (i) any Debt of IHOP or the Company (other than Debt owing to any Subsidiary or Affiliate)
which is not expressed to be junior or subordinate to any other Debt of IHOP or the Company, and (ii) any Debt of a Subsidiary other than the Company (other than Debt owing to IHOP, the
Company, any other Subsidiary or any Affiliate). 

        "Senior Financial Officer" means the chief financial officer, principal accounting officer, treasurer or comptroller of IHOP or the
Company. 

        "Series A Notes" is defined in Section 1. 

        "Series B Notes" is defined in Section 1. 

        "Subsidiary" means, as to any Person, any corporation, association or other business entity in which such Person or one or more of its
Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a
majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such
Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions without the prior approval of
such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a "Subsidiary" is a reference to a Subsidiary of IHOP. 

        "Subsidiary Guarantee Agreement" shall mean the Subsidiary Guarantee Agreement of IHOP Properties and IHOP Realty, as amended or modified
from time to time. 

        "Subsidiary Guarantor" shall mean and include IHOP Realty and IHOP Properties. 

        "Subsidiary Stock" means, with respect to any Person, the stock (or any options or warrants to purchase stock or similar equity interests
or other Securities exchangeable for or convertible into stock or similar equity interests) of any Subsidiary of such Person. 

        "Supplement" is defined in Section 2.2. 

        "Transfer" means, with respect to any Person, any transaction in which such Person sells, conveys, transfers or leases (as lessor) any of
its property, including, without limitation, Subsidiary Stock. For purposes of determining the application of the Net Proceeds Amount in respect of any Transfer, the Company may designate any Transfer
as one or more separate Transfers each yielding a separate Net Proceeds Amount. In any such case, (a) the Disposition Value of any property subject to each such separate Transfer and
(b) the amount of Consolidated Total Assets attributable to any property subject to each such separate Transfer shall be determined by ratably allocating the aggregate Disposition
Value of, and the aggregate Consolidated Total Assets attributable to, all property subject to all such separate Transfers to each such separate Transfer on a proportionate basis. 

        "2002 Notes" is defined in Section 1. 

        "Underlying Default" is defined in Section 8.1(d). 

        "USA
Patriot Act" shall mean the United States Public Law 107-56, Uniting and Strengthening America By Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA Patriot Act) Act of 2001. 

B-8

SCHEDULE 6.4

(to Note Purchase Agreement) 

 
  SUBSIDIARIES OF IHOP
  AND OWNERSHIP OF SUBSIDIARY STOCK    
  

	Name of Subsidiary
 
	 	Jurisdiction of

Organization
	 	Percentage of Outstanding

Shares Owned by IHOP or the

Company or Another Subsidiary

	International House of Pancakes, Inc.	 	Delaware	 	100%
	

IHOP Properties, Inc.	
 	

California	
 	

100%
	

IHOP Realty Corp.	
 	

Delaware	
 	

100%
	

III Industries of Canada, Inc.	
 	

Canada	
 	

100%
	

Blue Roof Advertising, Inc.	
 	

Canada	
 	

100%
	

IHOP Enterprises, Inc.	
 	

Delaware	
 	

100%

IHOP CORP.:
  a Delaware corporation

as of 10/23/2002 

Directors:  

H.
Frederick Christie

Frank Edelstein

Michael S. Gordon

Richard K. Herzer

Neven C. Hulsey

Larry Alan Kay

Caroline W. Nahas

Patrick W. Rose

Julia A. Stewart 

Officers:  

	Richard K. Herzer	—	Chairman of the Board
	Julia A. Stewart	—	President & Chief Executive Officer
	Gregg Nettleton	—	Chief Marketing Officer
	Alan S. Unger	—	Vice President—Finance, Treasurer and Chief Financial Officer
	Mark D. Weisberger	—	Vice President—Legal, Secretary and General Counsel
	Anna G. Ulvan	—	Vice President—Franchise
	Richard C. Celio	—	Vice President—Development
	Robin L. Elledge	—	Vice President—Human Resources
	Rand M. Ferris	—	Division Vice President—Operations, West
	John G. Jordan	—	Division Vice President—Operations, East
	Elayne Berg-Wilion	—	Assistant Secretary
	Jess E. Sotomayor	—	Assistant Secretary
	A. Allen Arroyo	—	Controller and Assistant Treasurer
	Bulaklak T. Agorrilla	—	Assistant Treasurer—Taxes

INTERNATIONAL HOUSE OF PANCAKES, INC.:
  a Delaware corporation

as of 10/23/2002 

Directors:  

H.
Frederick Christie

Frank Edelstein

Michael S. Gordon

Richard K. Herzer

Neven C. Hulsey

Larry Alan Kay

Caroline W. Nahas

Patrick W. Rose

Julia A. Stewart 

Officers:  

	Richard K. Herzer	—	Chairman of the Board
	Julia A. Stewart	—	President & Chief Executive Officer
	Gregg Nettleton	—	Chief Marketing Officer
	Alan S. Unger	—	Vice President—Finance, Treasurer and Chief Financial Officer
	Mark D. Weisberger	—	Vice President—Legal, Secretary and General Counsel
	Anna G. Ulvan	—	Vice President—Franchise
	Richard C. Celio	—	Vice President—Development
	Robin L. Elledge	—	Vice President—Human Resources
	Rand M. Ferris	—	Division Vice President—Operations, West
	John G. Jordan	—	Division Vice President—Operations, East
	Elayne Berg-Wilion	—	Assistant Secretary
	Jess E. Sotomayor	—	Assistant Secretary
	A. Allen Arroyo	—	Controller and Assistant Treasurer
	Bulaklak T. Agorrilla	—	Assistant Treasurer—Taxes

SCHEDULE 6.5

(to Note Purchase Agreement) 

 
 

FINANCIAL STATEMENTS    
  

        1.    IHOP
Corp. and Subsidiaries Consolidated Audited Financial Statements for the periods ending December 31, 1997-2001 (with independent auditor's report
thereon). 

        2.    IHOP
Corp. and Subsidiaries consolidated unaudited interim financial statements for the six-month period ending June 30, 2002. 

SCHEDULE 6.15

(to Note Purchase Agreement) 

IHOP CORP. & SUBSIDIARIES

EXISTING CURRENT AND FUNDED DEBT AND LIENS

FOR THE PERIOD ENDED SEPTEMBER 2002  

	7.79 Senior Notes Due 2002	 	$	4,571,429
	

7.42 Senior Notes Due 2008	
 	
 	

27,222,224
	

Installment Payment Agreement between IHOP CORP. and Varilease	
 	
 	

 
	

Corp. for software development costs	
 	
 	

23,801
	

Installment Payment Agreement between IHOP CORP. and Varilease	
 	
 	

 
	

Corp. for software development costs	
 	
 	

160,279
	

Lease Agreement between IHOP CORP. and Lucent Technologies	
 	
 	

 
	

Product Finance, a unit of Newcourt Communications Finance Corp.	
 	
 	

56,269
	

Master Lease Agreement between IHOP Restaurants, Inc. and Wells	
 	
 	

 
	

Fargo Equipment Finance, Inc.	
 	
 	

178,989
	

Bank of America 12MM Mortgage Loan	
 	
 	

11,122,236
	

Bank of America 17MM Mortgage Loan	
 	
 	

16,767,528
	

Master Lease Agreement between IHOP Restaurants, Inc. and Wells	
 	
 	

 
	

Fargo Equipment Finance, Inc.	
 	
 	

576,549
	

Bank Revolving Credit Agreement between International House of Pancakes	
 	
 	

 
	

Inc. and Wells Fargo Bank, N.A., amended May 31, 2002	
 	
 	

0
	 	 	

	

Total	
 	
$	

60,679,303
	 	 	

SCHEDULE 6.19

(to Note Purchase Agreement) 

 
 

ENVIRONMENTAL MATTERS    
  

None 

EXHIBIT 1(a)

(to Note Purchase Agreement) 

[FORM OF SERIES A NOTE]

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM.

INTERNATIONAL
HOUSE OF PANCAKES, INC. 

5.20%
SENIOR NOTE, SERIES A, DUE OCTOBER 28, 2012 

	No. RA- [        	]	October 28, 2002
	$[                              	]	PPN                              

        FOR
VALUE RECEIVED, the undersigned, INTERNATIONAL HOUSE OF PANCAKES, INC. (herein called the "Company"), a corporation organized
and existing under the laws of the State of Delaware, hereby promises to pay to [                        ], or registered assigns,
the principal sum of
[                        ] Dollars on October 28, 2012, with interest (computed on the basis of a 360-day year of twelve
30-day months) (a) on the
unpaid balance thereof at the rate of 5.20% per annum from the date hereof, payable semiannually, on the twenty-eighth (28th) day of April and October in each year, commencing with the April or
October next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount (as defined in the Note Purchase Agreements referred to below), payable
semiannually as aforesaid (or, at the option of the registered holder hereof, on demand), at a rate per annum from time to time equal to the greater of (i)7.20% or (ii) 2% over the rate of
interest publicly announced by Wells Fargo Bank, National Association from time to time in New York, New York as its "base" or "prime" rate. 

        Payments
of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank,
National Association, New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreements referred
to below. 

        This
Note is one of the 5.20% Senior Notes, Series A, due October 28, 2012 (the "Series A Notes") of the Company in
the aggregate principal amount of $95,000,000, which together with the Company's $5,000,000 aggregate principal amount of 5.88% Senior Notes, Series B, due October 28, 2012 (the
"Series B Notes", and together with the Series A Notes are collectively referred to as the  "Notes") is issued pursuant to separate Note Purchase
Agreements, dated as of October 28, 2002 (as from time to time amended and supplemented,
the "Note Purchase Agreements"), among IHOP Corp., a Delaware corporation, the Company and the respective Purchasers named therein and is entitled to
the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i) to have agreed to the confidentiality provisions set forth in  Section 21 of the Note Purchase
Agreements and (ii) to have made the representations set forth in  Section 7.2 of the Note Purchase Agreements. 

        This
Note is a registered Note and, as provided in the Note Purchase Agreements, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written
instrument of transfer duly executed, by the registered holder hereof or such holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in
the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary. 

        This
Note and the payment and performance hereof and of the Note Purchase Agreements are guarantied by (i) IHOP Properties, Inc. and IHOP Realty Corp. pursuant to the
Subsidiary Guarantee Agreement dated as of October 28, 2002, as amended from time to time and (ii) IHOP Corp. pursuant to the Parent Guarantee Agreement dated as of October 28,
2002, as amended from time to time. 

 

        The
Company will make required prepayments of principal on the dates and in the amounts specified in the Note Purchase Agreements. This Note is also subject to optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreements, but not otherwise. 

        If
an Event of Default, as defined in the Note Purchase Agreements, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the
manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreements. 

E-1(a)-2

 

        This
Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of law of such State that would require the application of the laws of a jurisdiction other than such State. 

	 	 	INTERNATIONAL HOUSE OF PANCAKES, INC.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

E-1(a)-3

EXHIBIT 1(b)

(to Note Purchase Agreement) 

[FORM OF SERIES B NOTE]

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM.

INTERNATIONAL
HOUSE OF PANCAKES, INC. 

5.88%
SENIOR NOTE, SERIES B, DUE OCTOBER 28, 2012 

	No. RB- [        	]	October 28, 2002
	$[                              	]	PPN                              

        FOR
VALUE RECEIVED, the undersigned, INTERNATIONAL HOUSE OF PANCAKES, INC. (herein called the "Company"), a corporation organized
and existing under the laws of the State of Delaware, hereby promises to pay to [                        ], or registered assigns,
the principal sum of
[                        ] Dollars on October 28, 2012, with interest (computed on the basis of a 360-day year of twelve
30-day months) (a) on the
unpaid balance thereof at the rate of 5.88% per annum from the date hereof, payable semiannually, on the twenty-eighth (28th) day of April and October in each year, commencing with the April or
October next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount (as defined in the Note Purchase Agreements referred to below), payable
semiannually as aforesaid (or, at the option of the registered holder hereof, on demand), at a rate per annum from time to time equal to the greater of (i) 7.88% or (ii) 2% over the rate
of interest publicly announced by Wells Fargo Bank, National Association from time to time in New York, New York as its "base" or "prime" rate. 

        Payments
of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank,
National Association, New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreements referred
to below. 

        This
Note is one of the 5.88% Senior Notes, Series B, due October 28, 2012 (the "Series B Notes") of the Company in
the aggregate principal amount of $5,000,000, which together with the Company's $95,000,000 aggregate principal amount of 5.20% Senior Notes, Series A, due October 28, 2012 (the
"Series A Notes", and together with the Series B Notes are collectively referred to as the  "Notes") is issued pursuant to separate Note Purchase
Agreements, dated as of October 28, 2002 (as from time to time amended and supplemented,
the "Note Purchase Agreements"), among IHOP Corp., a Delaware corporation, the Company and the respective Purchasers named therein and is entitled to
the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i) to have agreed to the confidentiality provisions set forth in  Section 21 of the Note Purchase
Agreements and (ii) to have made the representations set forth in  Section 7.2 of the Note Purchase Agreements. 

        This
Note is a registered Note and, as provided in the Note Purchase Agreements, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written
instrument of transfer duly executed, by the registered holder hereof or such holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in
the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary. 

        This
Note and the payment and performance hereof and of the Note Purchase Agreements are guarantied by (i) IHOP Properties, Inc. and IHOP Realty Corp. pursuant to the
Subsidiary Guarantee Agreement dated as of October 28, 2002, as amended from time to time and (ii) IHOP Corp. pursuant to the Parent Guarantee Agreement dated as of October 28,
2002, as amended from time to time. 

 

        The
Company will make required prepayments of principal on the dates and in the amounts specified in the Note Purchase Agreements. This Note is also subject to optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreements, but not otherwise. 

        If
an Event of Default, as defined in the Note Purchase Agreements, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the
manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreements. 

E-1(b)-2

 

        This
Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of law of such State that would require the application of the laws of a jurisdiction other than such State. 

	 	 	INTERNATIONAL HOUSE OF PANCAKES, INC.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

E-1(b)-3

EXHIBIT 4.4(a)

(to Note Purchase Agreement) 

 
  FORM OF OPINION OF SPECIAL COUNSEL
  FOR IHOP AND THE COMPANY    
  

        The closing opinion of Skadden, Arps, Slate, Meagher & Flom LLP, special counsel for IHOP and the Company, which is called for by Section 4.4(a) of
the Note Purchase Agreements, shall be dated the date of the Closing and addressed to the Purchasers, shall be satisfactory in scope and form to the Purchasers and shall be to the effect that: 

        1.    Each
Note Purchase Agreement constitutes the legal, valid and binding contract of IHOP and the Company enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent conveyance and similar laws affecting creditors' rights generally, and general principles of equity (regardless of whether the application of such principles is considered in a
proceeding in equity or at law). 

        2.    The
Notes constitute the legal, valid and binding obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
conveyance and similar laws affecting creditors' rights generally, and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or
at law). 

        3.    The
Parent Guarantee Agreement constitutes the legal, valid and binding contract of IHOP enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent conveyance and similar laws affecting creditors' rights generally, and general principles of equity (regardless of whether the application of such principles is considered in a proceeding
in equity or at law). 

        4.    No
approval, consent or withholding of objection on the part of, or filing, registration or qualification with, any governmental body, Federal or state, is necessary in
connection with the execution and delivery of the Financing Agreements. 

        5.    The
issuance and sale of the Notes and the execution, delivery and performance by IHOP and the Company of the Note Purchase Agreements do not conflict with the provisions
of the Articles of Incorporation or By-laws of IHOP and the Company, respectively. 

        6.    The
execution, delivery and performance by IHOP of the Parent Guarantee Agreement do not conflict with the provisions of the Articles of Incorporation or
By-laws of IHOP. 

        7.    Neither
the issuance of the Notes, nor the use of the proceeds of the sale of the Notes, will violate or conflict with Regulations T, U or X of the Board of Governors of
the Federal Reserve System of the United States of America. 

        8.    The
issuance, sale and delivery of the Notes or the Guarantee Agreement under the circumstances contemplated by the Note Purchase Agreements do not, under existing law,
require the registration of the Notes under the Securities Act of 1933, as amended, or the qualification of an indenture under the Trust Indenture Act of 1939, as amended. 

        With
respect to matters of fact on which such opinion is based, such counsel shall be entitled to rely on appropriate certificates of public officials and officers of IHOP and of the
Company. 

EXHIBIT 4.4(b)

(to Note Purchase Agreement) 

 
  FORM OF OPINION OF GENERAL COUNSEL
  FOR IHOP AND THE COMPANY    
  

        The closing opinion of Mark Weisberger, general counsel for IHOP and the Company, which is called for by Section 4.4(b) of the Note Purchase Agreements,
shall be dated the date of the Closing and addressed to the Purchasers, shall be satisfactory in scope and form to the Purchasers and shall be to the effect that: 

        1.    Each
of IHOP and the Company is a corporation, duly incorporated, validly existing and in good standing under the laws of the State of Delaware, has the corporate power
and the corporate authority to execute and perform the Note Purchase Agreements and, in the case of the Company, to issue the Notes and has the full corporate power and the corporate authority to
conduct the activities in which it is now engaged and is duly licensed or qualified and is in good standing as a foreign corporation in each jurisdiction in which the character of the properties owned
or leased by it or the nature of the business transacted by it makes such licensing or qualification necessary. 

        2.    Each
Subsidiary (other than the Company) is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and is
duly licensed or qualified and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or the nature of the business transacted by it makes such
licensing or qualification necessary and all of the issued and outstanding shares of capital stock of each such Subsidiary have been duly issued, are fully paid and non-assessable and are
owned by IHOP, by the Company, by one or more Subsidiaries, or by IHOP, the Company and one or more Subsidiaries. 

        3.    Each
Financing Agreement has been duly authorized by all necessary corporate action on the part of the respective Obligors party thereto and has been duly executed and
delivered by the respective Obligors party thereto. 

        4.    The
Subsidiary Guarantee Agreement constitutes the legal, valid and binding obligation of each Subsidiary Guarantor enforceable in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent conveyance and similar laws affecting creditors' rights generally, and general principles of equity (regardless of whether the application of such principles is
considered in a proceeding in equity or at law). 

        5.    The
issuance and sale of the Notes and the execution, delivery and performance by the Obligors of the Financing Agreements do not conflict with or result in any breach of
any of the provisions of or constitute a default under or result in the creation or imposition of any Lien upon any of the property of any Obligor pursuant to applicable California, Delaware or
Federal law, the provisions of its Articles of Incorporation or By-laws or any agreement or other instrument to which such Obligor is a party or by which such Obligor may be bound. 

        6.    There
is no litigation pending or, to the best of such counsel's knowledge after due inquiry, threatened against or affecting IHOP, the Company or any Subsidiary, at law
or in equity which could reasonably be expected to materially adversely effect, individually or in the aggregate, the properties, business, prospects, profits or condition (financial or otherwise) of
IHOP, the Company or any Subsidiaries or which could impair the ability of an Obligor to carry on its business as now conducted or impair the ability of an Obligor to comply with the provisions of and
perform its obligations under the Financing Agreements. 

        7.    No
Obligor is an "investment company," or a company "controlled" by an "investment company," under the Investment Company Act of 1940, as amended. 

        8.    There
is no litigation pending or, to the best knowledge of such counsel, threatened, which would question the legality, validity or enforceability of any of the
Financing Agreements. 

        The
opinion of Mark Weisberger shall cover such other matters relating to the sale of the Notes as the Purchasers may reasonably request. With respect to matters of fact on which such
opinion is based, such counsel shall be entitled to rely on appropriate certificates of public officials and officers of each Obligor. 

EXHIBIT 4.4(c)

(to Note Purchase Agreement) 

 
 

FORM OF OPINION OF SPECIAL COUNSEL FOR THE PURCHASERS    
  

        The closing opinion of Chapman and Cutler, special counsel to the Purchasers, called for by Section 4.4(c) of the Note Purchase Agreements, shall be dated
the date of the Closing and addressed to the Purchasers, shall be satisfactory in form and substance to the Purchasers and shall be to the effect that: 

        1.    The
Company is a corporation, validly existing and in good standing under the laws of the State of Delaware and has the corporate power and the corporate authority to
execute and deliver the Note Agreements and to issue the Notes. 

        2.    IHOP
is a corporation, validly existing and in good standing under the laws of the State of Delaware and has the corporate power and the corporate authority to execute
and deliver the Note Agreements. 

        3.    The
Note Agreements have been duly authorized by all necessary corporate action on the part of the Company, have been duly executed and delivered by the Company and
constitute the legal, valid and binding contracts of the Company enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent conveyance and similar laws
affecting creditors' rights generally, and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law). 

        4.    The
Note Agreements and the Parent Guarantee Agreement have been duly authorized by all necessary corporate action on the part of IHOP, have been duly executed and
delivered by IHOP and constitute the legal, valid and binding contracts of IHOP enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent conveyance and
similar laws affecting creditors' rights generally, and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law). 

        5.    The
Notes have been duly authorized by all necessary corporate action on the part of the Company, and the Notes being delivered on the date hereof have been duly executed
and delivered by the Company and constitute the legal, valid and binding obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent conveyance
and similar laws
affecting creditors' rights generally, and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law). 

        6.    The
issuance, sale and delivery of the Notes and the Guarantee Agreements under the circumstances contemplated by the Note Agreements do not, under existing law, require
the registration of the Notes or the Guarantee Agreements under the Securities Act of 1933, as amended, or the qualification of an indenture under the Trust Indenture Act of 1939, as amended. 

        The
opinion of Chapman and Cutler shall also state that the opinions of Skadden, Arps, Slate, Meagher & Flom LLP and of Mark Weisberger are satisfactory in scope and form to
Chapman and Cutler and that, in their opinion, the Purchasers are justified in relying thereon. 

        In
rendering the opinion set forth in paragraphs 1 and 2 above, Chapman and Cutler may rely solely upon an examination of the Restated Certificate of Incorporation certified by, and a
certificate of good standing of the Company and IHOP from, the Secretary of State of the State of Delaware, and the By-laws of the Company and IHOP. 

        With
respect to matters of fact upon which such opinion is based, Chapman and Cutler may rely on appropriate certificates of public officials and officers of the Company and upon
representations of the Company and the Purchasers delivered in connection with the issuance and sale of the Notes. 

EXHIBIT 4.14

(to Note Purchase Agreement) 

 
 

FORM OF AMENDED AND RESTATED INTERCREDITOR AGREEMENT    
  

[TO
BE PROVIDED] 

EXHIBIT S

(to Note Purchase Agreement) 

IHOP CORP.

INTERNATIONAL HOUSE OF PANCAKES, INC. 

and 

[NUMBER]
SUPPLEMENT TO NOTE PURCHASE AGREEMENT 

Dated as of
                                        

Re:                    $                    
                                 % Series      Senior
Notes
 

Due
                                        

IHOP CORP. 

INTERNATIONAL
HOUSE OF PANCAKES, INC. 

Dated
as of

                                        ,
         

To
the Purchaser(s) named in

Schedule A hereto 

Ladies
and Gentlemen: 

        This
[Number] Supplement to Note Purchase Agreement (the "Supplement") is among IHOP Corp., a Delaware corporation
("IHOP"), International House of Pancakes, Inc., a Delaware corporation (the "Company"), and the
institutional investors named on Schedule A attached hereto (the "Purchasers"). 

        Reference
is hereby made to the Note Purchase Agreements dated as of October 28, 2002 (the "Note Purchase Agreement") among IHOP,
the Company and the purchasers listed on Schedule A thereto. All capitalized terms not otherwise defined herein shall have the same meaning as specified in the Note Purchase Agreement.
Reference is further made to Section 4.12 of the Note Purchase Agreement which requires that, prior to the delivery of any Additional Notes, IHOP, the Company and each Additional Purchaser
shall execute and deliver a Supplement. 

        IHOP
and the Company hereby, jointly and severally, agree with the Purchaser(s) as follows: 

        1.    The
Company has authorized the issue and sale of $                        aggregate principal amount of
its            % Series    Senior Notes due
                        ,            (the "Series    Notes"). The Series    Notes, together with the 2002 Notes initially issued
pursuant to the Note Purchase Agreement and each series of Additional Notes which may from time to time be issued pursuant to the provisions of Section 2.2 of the Note Purchase Agreement, are
collectively referred to as the "Notes" (such term shall also include any such notes issued in substitution therefor pursuant to Section 14 of
the Note Purchase Agreement). The Series    Notes shall be substantially in the form set out in Exhibit 1 hereto with such changes therefrom, if any, as may be approved by the
Purchaser(s) and the Company. 

        2.    Subject
to the terms and conditions hereof and as set forth in the Note Purchase Agreement and on the basis of the representations and warranties hereinafter set forth,
the Company agrees to issue and sell to each Purchaser, and each Purchaser agrees to purchase from the Company, Series    Notes in the principal amount set forth opposite such Purchaser's
name on Schedule A hereto at a price of 100% of the principal amount thereof on the closing date hereafter mentioned. 

        3.    The
sale and purchase of the Series    Notes to be purchased by each Purchaser shall occur at the offices of Chapman and Cutler, 111 West Monroe Street,
Chicago, Illinois 60603, at 10:00 a.m. Chicago time, at a closing (the "Closing") on            ,
            or on such other Business
Day thereafter on or prior to            ,            as may be agreed upon by the Company and the Purchasers. At the Closing, the
Company will deliver to each Purchaser the Series
    Notes to be purchased by such Purchaser in the form of a single Series    Note (or such greater number of Series    Notes in denominations of at least $250,000
as such Purchaser may request) dated the date of the Closing and registered in such Purchaser's name (or in the name of such Purchaser's nominee), against delivery by such Purchaser to the Company or
its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number
[                        ]
at                        Bank, [Insert Bank address, ABA number for wire transfers, and any other relevant
wire transfer
information]. If, at the Closing, the Company shall fail to tender such Series    Notes to any Purchaser as provided above in this Section 3, or
any of the conditions specified in Section 4 shall not have been fulfilled to any Purchaser's satisfaction, such Purchaser shall, at such Purchaser's election, be relieved of all further
obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment. 

 

        4.    The
obligation of each Purchaser to purchase and pay for the Series    Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such
Purchaser's satisfaction, prior to the
Closing, of the conditions set forth in Section 4 of the Note Purchase Agreement with respect to the Series    Notes to be purchased at the Closing, and to the following additional
conditions: 

        (a)  Except
as supplemented, amended or superceded by the representations and warranties set forth in Exhibit A hereto, each of the representations and warranties of
the Company set forth in Section 6 of the Note Purchase Agreement shall be correct as of the date of Closing and the Company shall have delivered to each Purchaser an Officer's Certificate,
dated the date of the Closing certifying that such condition has been fulfilled. 

        (b)  Contemporaneously
with the Closing, the Company shall sell to each Purchaser, and each Purchaser shall purchase, the Series    Notes to be purchased by such
Purchaser at the Closing as specified in Schedule A. 

        5.    [Here
insert special provisions for Series    Notes including prepayment provisions applicable to Series    Notes (including
Make-Whole Amount) and closing conditions applicable to Series    Notes]. 

        6.    Each
Purchaser represents and warrants that the representations and warranties set forth in Section 7 of the Note Purchase Agreement are true and correct on the
date hereof with respect to the purchase of the Series    Notes by such Purchaser. 

        7.    The
Company and each Purchaser agree to be bound by and comply with the terms and provisions of the Note Purchase Agreement as fully and completely as if such Purchaser
were an original signatory to the Note Purchase Agreement. 

        The
execution hereof shall constitute a contract between IHOP, the Company and the Purchaser(s) for the uses and purposes hereinabove set forth, and this agreement may be executed in any
number of counterparts, each executed counterpart constituting an original but all together only one agreement. 

	 	 	IHOP CORP.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By:	 	

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	INTERNATIONAL HOUSE OF PANCAKES, INC.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	By	 	

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 
	Accepted as of                        ,
          	 	 	 	 	 
	 	 	 	 	 	 
	 	 	[Variation]
	 	 	 	 	 	 
	 	 	By	 	
 [Title]

2

 
 

INFORMATION RELATING TO PURCHASERS    
  

	Name and Address

of Purchaser
	 	Principal Amount

of Series      Notes

to Be Purchased

	[NAME OF PURCHASER]	 	$

	(1)
	All
payments by wire transfer of immediately available funds to: 

 

with
sufficient information to identify the source and application of such funds. 

	(2)
	All
notices of payments and written confirmations of such wire transfers: 

	(3)
	All
other communications: 

 
 

SUPPLEMENTAL REPRESENTATIONS    
  

        IHOP and the Company, jointly and severally, represent and warrant to each Purchaser that except as hereinafter set forth in this Exhibit A, each of the
representations and warranties set forth in Section 6 of the Note Purchase Agreement is true and correct as of the date hereof with respect to the "Series    Notes" with the same
force and effect as if each reference to "Series A Notes" or "Series B Notes" set forth therein was modified to refer the "Series    Notes" and each reference to "this
Agreement" therein was modified to refer to the Note Purchase Agreement as supplemented by the            Supplement. The Section references hereinafter set forth correspond to the similar
sections of the Note Purchase Agreement which are supplemented hereby: 

        Section 6.3.    Disclosure.    IHOP and the Company, through their agent(s),
                        , have delivered to
each Purchaser a copy of a Confidential Direct Placement Memorandum dated                        (the "Memorandum"), relating to the transactions contemplated
by the            Supplement. The Note Purchase Agreement, the Memorandum, the documents, certificates or other writings delivered to each Purchaser by or on behalf of the Company in
connection
with the transactions contemplated by the Note Purchase Agreement and the            Supplement and the financial statements listed in Schedule 6.5 to
the            Supplement, taken
as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which
they were made. Since                        , there has been no change in the financial condition, operations, business,
properties or prospects of IHOP or the Company or any Subsidiary except changes that
individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect. 

        Section 6.4.    Organization and Ownership of Shares of Subsidiaries.    (a) Schedule 6.4 to the
            Supplement contains (except as noted therein) complete and correct lists of the Subsidiaries, and showing, as to each Subsidiary, the correct name thereof, the jurisdiction of
its
organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by IHOP, the Company and each other Subsidiary. 

        Section 6.13.    Private Offering by the Company.    Neither IHOP, the Company nor anyone acting on its behalf
has offered the Series    Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with,
any Person other than the Purchasers and not more than [    ] other Institutional Investors, each of which has been offered the Series    Notes at a
private sale for investment. Neither IHOP, the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration
requirements of Section 5 of the Securities Act. 

        Section 6.14.    Use of Proceeds; Margin Regulations.    The Company will apply the proceeds of the sale of the
Series    Notes to                        and for general corporate purposes. No part of the proceeds from the
sale of the Series    Notes pursuant to the            Supplement
will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR
222), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to
involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). As used in this Section, the terms "margin stock" and "purpose of buying or carrying" shall have the
meanings assigned to them in said Regulation U. 

        Section 6.15.    Existing Debt; Future Liens.    (a) Schedule 6.15 to
the                        Supplement
sets forth a complete and correct list of all outstanding Debt of IHOP, the Company and the Subsidiaries as
of                        , since which date there has been no Material change in the amounts,
interest rates, sinking funds, installment payments or maturities of the Debt of IHOP, the Company or the Subsidiaries. Neither IHOP, the Company nor any Subsidiary is in default and no waiver of
default is currently in effect, in the payment of any principal or interest on any Debt of IHOP, the Company or such Subsidiary and no event or condition exists with respect to any Debt of IHOP, the
Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated
maturity or before its regularly scheduled dates of payment. 

[Add
any additional Sections as appropriate at the time the Series    Notes are issued] 

[FORM OF NOTE]

INTERNATIONAL
HOUSE OF PANCAKES, INC. 

[            ]%
SENIOR NOTE, SERIES [    ] DUE [            ] 

	No. R[    ]- [	]	[Date	]
	$[	]	PPN [                      

	]

        FOR
VALUE RECEIVED, the undersigned, INTERNATIONAL HOUSE OF PANCAKES, INC. (herein called the "Company"), a corporation organized
and existing under the laws of the State of Delaware, hereby promises to pay to [                        ], or registered assigns,
the principal sum of
[                        ] Dollars on
[                        ,            ], with interest (computed on
the basis of a 360-day year of twelve
30-day months) (a) on the unpaid balance thereof at the rate of [    ]% per annum from the date hereof, payable
[            ], on the [            ] day of [            ] in each
year, commencing with the
[            ] next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law on any overdue
payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount (as defined in the Supplement referred to below),
payable [            ], as aforesaid (or, at the option of the registered holder hereof, on demand), at a rate per annum from time to time equal to the greater of
(i) [interest rate plus 2%] or (ii) 2% over the rate of interest publicly announced by [name of reference bank] from time to time in
[city, state] as its "base" or "prime" rate. 

        Payments
of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at
[            ] or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreements referred
to below. 

        This
Note is one of a series of Senior Notes (herein called the "Notes") issued pursuant to that certain [Number]
Supplement to Note Purchase Agreements, dated as of October 28, 2002 (as from time to time amended and supplemented, the "Supplement"), among
IHOP Corp., a Delaware corporation, the
Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i) to have agreed to the
confidentiality provisions set forth in Section 21 of the Note Purchase Agreements (as defined in the Supplement) and (ii) to have made the representation set forth in Section 7.2
of the Note Purchase Agreements. 

        This
Note is a registered Note and, as provided in the Note Purchase Agreements, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written
instrument of transfer duly executed, by the registered holder hereof or such holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in
the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary. 

        This
Note and the payment and performance hereof and of the Note Purchase Agreements are guarantied by the Guarantors (as defined in the Note Purchase Agreements) pursuant to the
Guarantee Agreement dated as of October 28, 2002, as amended from time to time. 

        [The
Company will make required prepayments of principal on the dates and in the amounts specified in the Supplement. This Note is also subject to
[optional] prepayment, in whole or from time to time in part, at the times and on the terms specified in the Supplement, but not otherwise]. [This Note
is not subject to prepayment]. 

        If
an Event of Default, as defined in the Note Purchase Agreements, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the
manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreements. 

 

        This
Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of law of such State that would require the application of the laws of a jurisdiction other than such State. 

	 	 	INTERNATIONAL HOUSE OF PANCAKES, INC.
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	 	 	 	
 [Title]

2

QuickLinks

EXHIBIT 4.1

TABLE OF CONTENTS

INFORMATION RELATING TO PURCHASERS

DEFINED TERMS

SUBSIDIARIES OF IHOP AND OWNERSHIP OF SUBSIDIARY STOCK

FINANCIAL STATEMENTS

ENVIRONMENTAL MATTERS

FORM OF OPINION OF SPECIAL COUNSEL FOR IHOP AND THE COMPANY

FORM OF OPINION OF GENERAL COUNSEL FOR IHOP AND THE COMPANY

FORM OF OPINION OF SPECIAL COUNSEL FOR THE PURCHASERS

FORM OF AMENDED AND RESTATED INTERCREDITOR AGREEMENT

INFORMATION RELATING TO PURCHASERS

SUPPLEMENTAL REPRESENTATIONS

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