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Exhibit 10.3  

 
 

TERMS AND CONDITIONS OF
  PERFORMANCE SHARE AWARDS ISSUED PURSUANT TO DEFERRED STOCK PROVISIONS OF
  THE IHOP CORP. 2001 STOCK INCENTIVE PLAN    
    

1.    ESTABLISHMENT OF THE TERMS AND CONDITIONS OF PERFORMANCE SHARE AWARDS ISSUED PURSUANT TO DEFERRED STOCK PROVISIONS OF THE IHOP CORP. 2001 STOCK INCENTIVE PLAN
AND DEFINITIONS.  

(a)    The
following Performance Share Awards Terms and Conditions (the "Terms and Conditions") was established by the Board of Directors of IHOP Corp. (the "Company") on February 24,
2004, pursuant to the Company's 2001 Stock Incentive Plan. The Performance Share Awards Terms and Conditions is intended to govern the Terms and Conditions of Deferred Stock (as defined in the
Company's 2001 Stock Incentive Plan, also referred to herein as Performance Shares) to be awarded hereunder.(1) The initial Performance Cycle under the Performance Share Awards granted hereunder
commenced as of January 1, 2004.    Any capitalized terms not defined herein shall have the meaning set forth in the Company's 2001 Stock Incentive Plan. In the event of a conflict
between the provisions of the Company's 2001 Stock Incentive Plan and these Terms and Conditions, the provisions of the Company's 2001 Stock Incentive Plan shall prevail. 

	(1)
	For
the avoidance of confusion or doubt, grantees of awards under the Terms and Conditions shall be treated as holders of Deferred Stock under the Company's 2001 Stock
Incentive Plan and shall not be treated as holders of Restricted Stock or Performance Shares (each as defined in the Company's 2001 Stock Incentive Plan). 

(b)    For
purposes of these Terms and Conditions, the terms listed below shall have the following meanings: 

	(1)
	Earned Award refers to the number of Performance Shares actually earned for a Performance Cycle under these Terms and
Conditions.

	(2)
	Net Cash Flow from Operating Activities refers to the aggregate 3-year net cash flow from the consolidating
operating activities of the Company for the Performance Cycle.

	(3)
	Participant refers to a recipient of a Target Award.

	(4)
	Peer Restaurants refers to the group of restaurants and restaurant holding companies designated by the Committee for use
in comparing IHOP Corp.'s performance for purposes of this Terms and Conditions. From time to time, the Committee may deem it necessary to revise the composition of the Peer Restaurants.

	(5)
	Performance Cycle refers to a period of time consisting of three consecutive fiscal years.

	(6)
	Performance Share refers to an award unit.

	(7)
	Performance Shares Award Agreement refers to a written agreement between IHOP Corp. and a Participant with respect to a
Target Award.

	(8)
	Stock Option Plan refers to the IHOP Corp. 2001 Stock Incentive Plan.

	(9)
	Target Award refers to a Performance Share grant made pursuant to these Terms and Conditions.

	(10)
	Total Shareholder Return refers to the change in value of the Company's common stock over a Performance Cycle, plus
dividends paid over such Performance Cycle, expressed as a percentage of the closing price of the Company's common stock on the business day prior to the first day of the Performance Cycle. 

 

2.    ADMINISTRATION OF THE TERMS AND CONDITIONS.

(a)    The
Terms and Conditions shall be administered by the Committee. 

(b)    The
Committee shall meet at such times and places and upon such notice as the Committee's Chairperson determines. A majority of the Committee shall constitute a quorum. Any acts by
the Committee may be taken at any duly noticed meeting at which a quorum is present and shall be by majority vote of those members entitled to vote or, if in writing, by unanimous written consent. 

(c)    The
Committee shall determine which Eligible Employees of IHOP Corp. or its subsidiaries shall be granted awards under these Terms and Conditions, the timing of such awards, the terms
thereof and the number of Performance Shares subject to each award. 

(d)    The
Committee shall have the sole authority, in its absolute discretion, to adopt, amend and rescind such rules and regulations as, in its opinion, may be advisable in the
administration of these Terms and Conditions, to construe and interpret these Terms and Conditions, its rules and regulations, and the instruments evidencing awards granted under these Terms and
Conditions, and to make all other
determinations deemed necessary or advisable for the administration of these Terms and Conditions. All decisions, determinations and interpretations of the Committee shall be binding on all
Participants. 

3.    PERFORMANCE SHARES SUBJECT TO THESE TERMS AND CONDITIONS.  

(a)    Target
Awards may be granted under these Terms and Conditions to Participants for an aggregate of not more than 600,000 Performance Shares. Performance Shares that are forfeited shall
again be available for Target Awards under the Stock Option Plan. In the event that the number of shares of Common Stock available for grant under the Stock Option Plan is not sufficient to
accommodate the Earned Awards, then the remaining shares of Common Stock available for Earned Awards shall be granted to Participants on a pro-rata basis. No further grants shall be made
until such time, if any, as additional shares of Common Stock become available for grant under the Stock Option Plan through action of the Board and/or the stockholders of the Company to increase the
number of shares of Common Stock that may be issued under the Stock Option Plan or through cancellation or expiration of awards previously granted hereunder. 

4.    PERFORMANCE CYCLES.  

        A
new Performance Cycle begins at the start of each Company fiscal year and continues until the end of the third consecutive fiscal year. 

5.    TARGET AWARD.  

        Each
Participant will be granted a Target Award at the beginning of each Performance Cycle. The size of the Target Award (i.e., the number of Performance Shares granted) will be based on
position level, desired pay positioning, other long-term incentive grants, and any other considerations deemed pertinent by the Committee. Participants may earn from zero times to one and
one-half times the Target Award based on IHOP Corp.'s performance, as described in Section 6. At the Committee's direction, the Company's Director of Compensation, Benefits and HRIS
will prepare a "Performance Shares Award Agreement" evidencing the amount and terms of such Participant's Target Award. 

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6.    PERFORMANCE MEASUREMENT AND EARNING OF AWARDS  

        Performance
Shares are earned based on both Net Cash Flow From Operating Activities and the Company's Total Shareholder Return relative to the Peer Restaurants during the respective
Performance Cycle, stated as a percentile ranking where 100% represents the best performing Peer and 0% represents the worst performing Peer. At the beginning of each Performance Cycle, the Committee
shall establish the specific performance measure or measures to be used and the schedule for calculating the number of Performance Shares (as a multiple of the Target Award) actually earned.
Participants will earn Performance Shares only upon the attainment of the performance goals established by the Committee. 

7.    EXTRAORDINARY EVENTS  

        If
extraordinary events occur during a Performance Cycle which alter the basis upon which the performance measurement(s) is calculated, such calculation may be adjusted, with the
Committee's approval, to exclude the effect of these events. Events warranting such action may include, but are not limited to, major acquisitions or divestitures, significant changes in accounting
practices, or a recapitalization of the Company. Notwithstanding the foregoing, the Committee shall not have the discretion to increase the amount of compensation payable that would otherwise be due
upon attainment of the goals. 

8.    VALUE AND PAYMENT OF EARNED AWARDS.  

        The
value payable to a Participant shall equal the Earned Award and will paid as follows: 

	(i)
	One-half
of the earned award will be in the form of Common Shares of IHOP Corp. stock, issued under the Stock Option Plan; and

	(ii)
	One-half
will be in the form of a cash payment, less applicable withholding taxes. The cash payment will be based on one-half of the Earned
Award multiplied by the Closing Price of IHOP Corp. stock on the last day of the Performance Cycle.

	(iii)
	The
stock and cash payments shall be made within 90 days following the end of the Performance Cycle or deposited to the Participant's account if deferred under
a Company-sponsored deferral plan. 

9.    TERMINATION OF EMPLOYMENT  

        Termination
of employment with the Company or its Subsidiaries prior to the end of the Performance Cycle for any reason (whether voluntary or involuntary) shall result in forfeiture of
all opportunity to receive an Earned Award under these Terms and Conditions, subject to the following exceptions. In the event of termination by reason of death, Disability, or Retirement, the
Participant (or the Participant's beneficiary or estate in the event of death) will be eligible to receive a pro-rata Earned Award based on the time employed during the Performance Cycle,
rounded to the nearest complete month. Payment of pro-rata Earned Awards shall be governed by all other applicable provisions of these Terms and Conditions. 

        Notwithstanding
these or any other provisions of these Terms and Conditions, the Committee may, in its sole discretion, authorize continued participation, pro-ration, or
early distribution (or a combination thereof) of Earned Awards which would otherwise be forfeited. 

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Exhibit 10.1    
    

 
 

FULL AND COMPLETE RELEASE    
    

        Whereas, Steven J. Heyer ("Executive") and The Coca-Cola Company (the "Company") previously entered into an agreement titled "Terms of Employment
between Steven J. Heyer and The Coca-Cola Company, March 2, 2001" (the "Terms of Employment"); 

        Whereas,
as of the date of the execution of this Full and Complete Release (this "Agreement") by the parties, the Company does hereby deliver notice of its decision not to extend the
Employment Period of Executive set forth in Section 2 of the Terms of Employment (the "Notice"); 

        Whereas,
based on the Company's delivery of the Notice, Executive has determined that, effective December 30, 2004 or such earlier date as Executive and the Company's Chief
Executive Officer may agree, he will terminate his employment for Good Reason, as defined in Section 16 of the Terms of Employment; and 

        Whereas,
the Executive has consulted with an attorney and has relied upon the advice of his attorney in signing this Agreement. 

        Now,
therefore, in consideration for payments and benefits provided by the Company as set forth in this Agreement and the Terms of Employment, including, but not limited to the payments
described in Section 10 of the Terms of Employment, the sufficiency of which is hereby acknowledged, Executive and the Company agree as follows: 

Full and Complete Release.  

        Executive, for himself and his heirs, executors, administrators and assigns, does hereby knowingly and voluntarily release and forever discharge The
Coca-Cola Company and its subsidiaries, affiliates, joint ventures, joint venture partners, and benefit plans, and their respective current and former directors, officers, administrators,
trustees, employees, agents, and other representatives, from all debts, claims, actions, causes of action (including without limitation those arising under the Fair Labor Standards Act of 1938, as
amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C.
§ 1001 et seq.; the Worker Adjustment and Retraining Notification Act of 1988, 29 U.S.C. § 2101  et seq.; and those federal, state,
local, and foreign laws prohibiting employment discrimination based on age, sex, race, color, national origin,
religion, disability, veteran or marital status, sexual orientation, or any other protected trait or characteristic, or retaliation for engaging in any protected activity, including without limitation
the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq., as amended by the Older Workers Benefit Protection Act,
P.L. 101-433; the Equal Pay Act of 1963, 9 U.S.C. § 206, et seq.; Title VII of The Civil Rights Act of 1964, as amended,
42 U.S.C. § 2000e et seq.; the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Civil Rights Act of 1991, 42 U.S.C.
§ 1981a; the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, 29 U.S.C.
§ 791 et seq.; the Family and Medical Leave Act of 1993, 28 U.S.C. §§ 2601 and 2611  et seq.; and comparable state, local, and
foreign causes of action, whether statutory or common law), suits, dues, sums of money, accounts, reckonings,
covenants, contracts, claims for costs or attorneys' fees, controversies, agreements, promises, and all liabilities of any kind or nature whatsoever, at law, in equity, or otherwise, KNOWN OR UNKNOWN,
fixed or contingent, which he ever had, now has, or may have, or which he, his heirs, executors, administrators or assigns hereafter can, shall, or may have, from the beginning of time through the
date on which he signs this Agreement, including without limitation those arising out of or related to his employment or separation from employment with the Company (collectively the "Released
Claims"), provided nothing herein releases the Company from its obligations under the Terms of Employment or this Agreement, or 

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releases
any vested and accrued benefits to which Executive is entitled or any rights which by law cannot be released. 

        Executive
fully understands and agrees that: 

	1.
	no
rights or claims are released or waived that may arise after the date Executive signs this Agreement;

	2.
	Executive
is advised to consult with an attorney before signing this Agreement;

	3.
	Executive
has 21 days from receipt of this Agreement within which to consider whether to sign it;

	4.
	Executive
has seven days following his execution of this Agreement to revoke the Agreement; and

	5.
	this
Agreement shall be effective on the date hereof, but Executive shall not have the right to enforce this Agreement until the revocation period of seven days has expired without any
such revocation. 

        Executive
additionally understands and agrees that this Agreement is not and shall not be construed to be an admission of liability of any kind on the part of the Company or any of the
other persons or entities hereby released. 

Release of Claims Against Executive.  

        The Company does hereby knowingly and voluntarily release and forever discharge the Executive from all debts, claims, actions, causes of action, suits, dues, sums
of money, accounts, reckonings, covenants, contracts, claims for costs or attorneys' fees, controversies, agreements, promises, and all liabilities of any kind or nature whatsoever, at law, in equity,
or otherwise, KNOWN OR UNKNOWN, fixed or contingent, which it ever had, now has, or may have, or which it hereafter can, shall, or may have, from the beginning of time through the date on which it
signs this Agreement, including without limitation those arising out of or related to Executive's employment or separation from employment with the Company, provided nothing herein precludes the
Company from enforcing its rights under this Agreement, the Terms of Employment or its rights related to taxes, advances or reimbursement of expenses arising in the course of Executive's employment
relationship with the Company. 

Future Cooperation.  

        Executive covenants and agrees that he shall reasonably cooperate with and serve in any capacity requested by the Company in any pending or future matters,
including without limitation any litigation, investigation, or other dispute, in which he, by virtue of his employment with the Company, has relevant knowledge or information, including, but not
limited to (i) meeting with representatives of the Company to provide truthful information regarding his knowledge, (ii) acting as the Company's representative, and
(iii) providing, in any jurisdiction in which the Company requests, truthful testimony
relevant to said matter. The Company shall reimburse Executive for all of Executive's reasonable out-of-pocket expenses associated with such assistance, including travel
expenses and attorneys' fees. 

Indemnification.  

        Nothing in this Agreement shall affect any rights Executive may have under Article VII of the Company's by-laws in effect as of the date of
this Agreement, any written agreement between the Company and Executive or under applicable law. 

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Nondisparagement.  

        Executive will not disparage the Company, its customers or suppliers or the Company's directors, officers, or employees ("Representatives"). The Company and its
Representatives will not disparage Executive. "Disparagement" means a negative oral or written statement that can be accurately demonstrated in fact to be attributable to (i) Executive or
(ii) the Company or its Representatives (as applicable). Notwithstanding the foregoing, (i) no statement made by either party in the context of any legal or regulatory proceeding shall
be deemed to violate the foregoing provisions, and (ii) subject to (i), all communication relating to the termination of Executive's employment with the Company shall be consistent with the
press release of the date hereof. 

Effect of Agreement.  

        The Company acknowledges that this Agreement constitutes Executive's notice of resignation for Good Reason under the Terms of Employment and, accordingly, in the
event Executive's employment shall terminate for any reason prior to December 30, 2004 (other than a voluntary resignation by Executive effective prior to such date to which the Chief Executive
Officer of the Company has not consented), Executive shall receive all payments and other benefits to which Executive is entitled under the Terms of Employment in connection with a termination of
employment for Good Reason. 

Complete Agreement.  

        This Agreement and the Terms of Employment are the complete understanding between Executive and the Company in respect of the subject matter of this Agreement
and, with the exception of any prior agreement Executive has signed or made with the Company regarding trade secrets, confidential information, or intellectual property, supersede all prior agreements
relating to the same subject matter. In signing this Agreement, Executive has not relied upon any representations, promises or agreements of any kind except those set forth herein and in the Terms of
Employment. 

Severability.  

        In the event that any provision of this Agreement should be held to be invalid or unenforceable, each and all of the other provisions of this Agreement shall
remain in full force and effect. If any provision of this Agreement is found to be invalid or unenforceable, such provision shall be modified as necessary to permit this Agreement to be upheld and
enforced to the maximum extent permitted by law. 

Governing Law.  

        This Agreement is to be governed and enforced under the laws of the State of Delaware (except to the extent that Delaware conflicts of law rules would call for
the application of the law of another jurisdiction). 

Successors and Assigns.  

        This Agreement is binding upon and inures to the benefit of the Company and its successors and assigns. 

Amendment/Waiver.  

        No amendment, modification or discharge of this Agreement shall be valid or binding unless set forth in writing and duly executed by each of the parties hereto. 

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Acknowledgment.  

        Executive has carefully read this Agreement, fully understands each of its terms and conditions, and intends to abide by this Agreement in every respect. As such,
Executive knowingly and voluntarily signs this Agreement. 

	 	 	 	 	Executive
	

 	
 	

 	
 	

/s/  STEVEN J. HEYER      
 Steven J. Heyer
	

Date:	
 	

6/8/04	
 	

 
	

 	
 	

 	
 	

The Coca-Cola Company
	

 	
 	

 	
 	

/s/  DEVAL L. PATRICK      
 Deval L. Patrick

Executive Vice President, General Counsel and Corporate Secretary
	

Date:	
 	

6/8/04	
 	

 

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Exhibit 10.1

FULL AND COMPLETE RELEASE

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