Document:

Exhibit 4.8

 

SECOND ADDENDUM TO LOAN AGREEMENT

 

THIS SECOND ADDENDUM TO LOAN
AGREEMENT (this “Amendment”) is made and entered into as of this 28th day of
October, 2002, by and among: (i) BANK OF AMERICA, N.A. (“Lender”); (ii) IHOP
PROPERTIES, INC., a California corporation (“Borrower”); and (iii)
INTERNATIONAL HOUSE OF PANCAKES, INC., a Delaware corporation, IHOP Corp., a
Delaware corporation (“IHOP Parent”) and IHOP Realty Corp., a Delaware
corporation (collectively, the “Guarantor”).

 

RECITALS

 

WHEREAS, on April 27, 2001,
Borrower, Guarantor and Lender entered into that certain Loan Agreement (the
“Loan Agreement”) relating to a $12,018,206.00 loan secured by Borrower’s
interest in land, building and fixtures comprising equipment and signage to be
used in connection with thirteen (13) IHOP Restaurants;

 

WHEREAS, on March 13, 2002,
Borrower, Guarantor and Lender entered into that certain First Addendum to Loan
Agreement to reflect an additional loan to Borrower in the original principal
amount of $17,203,432.00 secured by Borrower’s interest in land, building and
fixtures comprising seventeen (17) IHOP Restaurants; and

 

WHEREAS, Borrower, Guarantor
and Lender now desire to amend the Loan Agreement to modify certain negative
covenants set forth in the Loan Agreement relating to restrictions on Liens.

 

NOW, THEREFORE, for and in
consideration of Ten and No/100 Dollars ($10.00) in hand paid, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

 

1.             Recitals.  Borrower, Guarantor and Lender hereby
approve the foregoing recitations and agree that said recitations are true and
correct in all respects.

 

2.             Definitions:  The definition for Debt and Funded Debt set
forth in Section 1 of the Loan Agreement are amended to read as follows:

 

Debt. Debt with respect to any Person means,
without duplication, (i) all indebtedness of such Person for borrowed money,
(ii) the liability of such Person created by granting a Lien to which the
property or assets of such Person are subject whether or not such Person has
assumed or become legally liable for the payment of any obligation (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, as
determined in good faith by such Person), (iii) Capitalized Lease Obligations
of such Person and (iv) the aggregate amount of all Guarantees given by such
Person with respect to any of the foregoing.

 

Funded Debt.  Funded Debt shall mean (i) all Debt of a Person (other than
Guarantees) having a final maturity of more than one year from the date of
incurrence thereof (or which is renewable or extendible at the option of the
obligor for a period or periods of more than one year from the date of
incurrence), including all payments in respect thereof that are

 

 

required to be made within
one year from the date of any determination of Funded Debt, whether or not
included in current liabilities, LESS 95%
of the total long-term Capitalized Lease receivables (to the extent that
Capitalized Lease Obligations by such Person exceed Capitalized Lease
receivables by such Person as lessor under direct financing leases with
franchisees so long as such direct financing leases are, at the time of
determination to the best knowledge of the lessor thereunder, valid and
enforceable against their lessees and are current as to payment and not
otherwise in default to the extent that there is a reasonable likelihood that
any such lease would be terminated by the lessor prior to its stated
expiration), and (ii) in the case of Guarantees, all Guarantees of obligations
maturing more than one year after the date as of which the Guarantee is incurred.

 

3.             Affirmative
Covenants.  Section 5.A.ii is
hereby deleted in its entirety and replaced with the following Section 5.A.ii
and iii.

 

ii.                                       Maintain Funded Debt to EBITDA Ratio: The Borrower and
Guarantors, on a consolidated basis, will not permit the ratio of total Funded
Debt divided by EBITDA to be greater than 2.75. This Ratio shall be calculated
using the form attached as Exhibit F.

 

iii.                                    Maintain Funded Debt to Total Capitalization Ratio: The Borrower
and Guarantors, on a consolidated basis, will not permit the ratio of total
Funded Debt divided by Total Capitalization to be less than 60%. For the
purposes hereof, “Total Capitalization” shall mean Funded Debt plus
Consolidated Tangible Net Worth less deferred income taxes.

 

4.             Restrictions on
Liens.  Subsection (I) of
Section 6.1 of the Loan Agreement is hereby deleted in its entirety and
replaced with the following Subsection (I):

 

(I)            Liens including Liens arising out of purchase money
financing securing Debt (without duplication) of IHOP Parent, the Borrower or
any Subsidiary of IHOP Parent or the Borrower,
provided, that after giving effect to such Liens, the IHOP Parties
are still in compliance with the financial ratios set forth in Section 5 (A)
(i), (ii) and (iii) above, measured in each case on a pro forma basis as of the
most recently ended fiscal quarter as if such incurrence had occurred on the
last day of such fiscal quarter.

 

5.             Ratification
and Reaffirmation.  Borrower and Guarantor hereby ratify and
reaffirm each of the Loan Documents and all of Borrower’s and Guarantor’s
covenants, duties and liabilities thereunder.

 

6.             Representations and
Warranties.  Borrower and
Guarantor represent and warrant to Lender, to induce Lender to enter into this
Amendment, that no Default or Event of Default exists on the date hereof; the
execution, delivery and performance of this Amendment have been duly authorized
by all requisite corporate action on the part of the Borrower and/or Guarantor
and this Amendment has been executed and delivered by

 

2

Borrower and Guarantor; and except as may
have been disclosed in writing by Borrower and/or Guarantor to Lender prior to
the date hereof, all of the representations and warranties made by Borrower in
the Loan Agreement are true and correct on and as of the date hereof.

 

7.             Expenses of Lender.   Borrower
agrees to pay all costs and expenses incurred by Lender in connection with the
preparation, negotiation and execution of this Amendment and any other Loan
Documents executed pursuant hereto and any and all amendments, modifications,
and supplements thereto, including, without limitation, the costs and fees of
Lender’s legal counsel.

 

8.             Governing Law.   This
Amendment shall be governed by and construed in accordance with the internal
laws of the State of Georgia.  The
parties stipulate and agree that the Borrower and Guarantor have numerous
business operations in the State of Georgia and this Amendment has been made,
delivered and is performable in the State of Georgia at Bank’s main office in
the State of Georgia and the laws of the State of Georgia and applicable United
States federal law shall apply and this Agreement shall be construed in
accordance with the laws of the State of Georgia and applicable United States federal
law.  Wherever possible each provision
of this Amendment shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Amendment shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Amendment.  The invalidity or
unenforceability of any provision of any Loan Document to any person or
circumstance shall not affect the enforceability or validity of such provision
as it may apply to other persons or circumstances.

 

9.             Successors and
Assigns.   The Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 

10            No Novation, etc.   This
Amendment is not intended to be, nor shall it be construed to create, a
novation or accord and satisfaction, and the Loan Agreement as herein modified
shall continue in full force and effect.

 

11.           Counterparts.   This
Amendment may be executed in one or more counterparts, each of which shall
constitute an original, but all of which taken together shall be one and the
same instrument.

 

12.           Waiver
of Notice.   Borrower and Guarantor hereby waive
notice of acceptance of this Amendment by Lender.

 

13.           General.   Except
as specifically modified herein, all other terms and conditions of the Loan
Agreement shall remain unchanged and in full force and effect.

 

3

 

IN WITNESS WHEREOF, the
parties have signed and sealed this Amendment on the day and year first
above-written.

 

	
  GUARANTOR:

  	
  BORROWER:

  
	
   

  	
   

  
	
  INTERNATIONAL HOUSE OF
  PANCAKES, INC.

  	
  IHOP PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   /s/ Julia A. Stewart

  	
   

  	
  By:

  	
   /s/ Julia A. Stewart

  	
   

  
	
  Name:   Julia
  A. Stewart

  	
  Name:   Julia
  A. Stewart

  
	
  Title:     President

  	
  Title:     President

  
	
   

  	
   

  
	
  (CORPORATE SEAL)

  	
  (CORPORATE SEAL)

  
	
   

  	
   

  
	
  GUARANTOR:

  	
  GUARANTOR:

  
	
   

  	
   

  
	
  IHOP REALTY CORP.

  	
  IHOP CORP.

  
	
   

  	
   

  
	
  By:

  	
   /s/ Julia A. Stewart

  	
   

  	
  By:

  	
   /s/ Julia A. Stewart

  	
   

  
	
  Name:   Julia
  A. Stewart

  	
  Name:   Julia
  A. Stewart

  
	
  Title:     President

  	
  Title:     President

  
	
   

  	
   

  
	
  (CORPORATE SEAL)

  	
  (CORPORATE SEAL)

  
								

 

SIGNATURES
CONTINUED ON NEXT PAGE

 

4

 

SIGNATURE PAGE TO SECOND
ADDENDUM TO LOAN AGREEMENT

 

	
  BANK/LENDER:

  	
   

  
	
   

  	
   

  
	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Bobby R. Oliver, Jr.

  	
   

  	
   

  
	
  Name:  Bobby R.
  Oliver, Jr.

  	
   

  
	
  Title:    Vice
  President

  	
   

  
				

 

5Exhibit 4.10

 

 

Amended and Restated

Intercreditor Agreement

Dated as of October 28, 2002

 

Among

 

WELLS Fargo
Bank, National Association

 

And

 

MONY Life Insurance Company

MONY Life Insurance Company
of America

The Manufacturers Life
Insurance Company

The Franklin Life Insurance
Company

The Canada Life Assurance
Company

and

Modern Woodmen of America

 

And

 

Jackson National Life
Insurance Company

Phoenix Life Insurance
Company

United of Omaha Life
Insurance Company

and

MetLife Investors USA
Insurance Company

 

And

 

AIG Annuity Insurance Company

The Variable Annuity Life
Insurance Company

American General Assurance
Company

Merit life Insurance Co.

United of Omaha Life
Insurance Company

Phoenix Life Insurance
Company

Modern Woodmen of America

MONY Life Insurance Company
of America

Nationwide Life and Annuity
Insurance Company

Nationwide Life Insurance
Company

Nationwide Life Insurance
Company of America

 

And

 

Additional Lenders

 

 

 

TABLE OF
CONTENTS

 

	
  SECTION

  	
   

  	
  HEADING

  
	
   

  	
   

  	
   

  
	
  SECTION
  1.

  	
   

  	
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  SECTION
  2.

  	
   

  	
  SHARING
  OF RECOVERIES

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  AGREEMENTS AMONG THE CREDITORS

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Independent Actions by Creditors

  
	
  Section
  3.2.

  	
   

  	
  Relation of Creditors

  
	
  Section 3.3.

  	
   

  	
  Acknowledgment of
  Guarantees

  
	
  Section 3.4.

  	
   

  	
  Additional Lenders

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section
  4.1.

  	
   

  	
  Entire Agreement

  
	
  Section
  4.2.

  	
   

  	
  Notices

  
	
  Section 4.3.

  	
   

  	
  Successors and Assigns

  
	
  Section
  4.4.

  	
   

  	
  Consents, Amendment, Waivers

  
	
  Section
  4.5.

  	
   

  	
  Governing Law

  
	
  Section 4.6.

  	
   

  	
  Counterparts

  
	
  Section 4.7.

  	
   

  	
  Severability

  
	
  Section
  4.8.

  	
   

  	
  Expenses

  
	
   

  	
   

  	
   

  

 

i

 

AMENDED
AND RESTATED INTERCREDITOR AGREEMENT

 

Amended And Restated Intercreditor Agreement dated as of
October 28 2002 among Wells Fargo
Bank, National Association (the “Lender”), MONY Life Insurance Company (formerly The Mutual Life Insurance
Company of New York), MONY Life Insurance Company of America, The Manufacturers
Life Insurance Company, The Franklin Life Insurance Company, The Canada Life
Assurance Company and Modern
Woodmen of America (each institution is referred to herein as a “1992
Noteholder” and the institutions are collectively referred to as the
“1992
Noteholders”), Jackson
National Life Insurance Company, Phoenix Life Insurance Company  (formerly Phoenix Home Life Mutual Insurance
Company), United of Omaha Life Insurance Company and MetLife Investors USA Insurance Company (each
institution is referred to herein as a “1996 Noteholder” and the institutions are
collectively referred to herein as the “1996 Noteholders”), AIG Annuity Insurance Company, The Variable
Annuity Life Insurance Company, American General Assurance Company, Merit Life
Insurance Co., United of Omaha Life Insurance Company, Phoenix Life Insurance
Company, Modern Woodmen of America, MONY Life Insurance Company of America,
Nationwide Life and Annuity Insurance Company, Nationwide Life Insurance
Company, Nationwide Life Insurance Company of America (each institution
is referred to herein as a “2002 Noteholder” and the institutions are
collectively referred to as the “2002 Noteholders”; the 2002 Noteholders,
the 1996 Noteholders, the 1992 Noteholders and the Lender and each of the
additional Persons, if any, that become a party hereto as contemplated by §3.4
hereof (each such Person is referred to as an “Additional Lender”) are
individually referred to herein as a “Creditor” and are collectively referred
to herein as the “Creditors”).  This
Agreement amends and restates, in its entirety, that certain Amended and
Restated Intercreditor Agreement dated as of June 28, 2001 among the
Lender, the 1992 Noteholders, the 1996 Noteholders and any and all “Additional
Lenders” thereafter party thereto (as amended from time to time”).

 

RECITALS:

 

A.            Under and pursuant
to the separate and several Senior Note Purchase Agreements each dated as of
October 28, 2002 (collectively, the “2002 Note Agreements”) among
International House of Pancakes, Inc., a Delaware corporation (the “Borrower”),
IHOP Corp., a Delaware corporation (Holdings”) and each of the 2002
Noteholders, the Borrower has issued and sold to the 2002 Noteholders
(i) $95,000,000 aggregate principal amount of its 5.20% Senior Notes, Due
October 28, 2012 and (ii) $5,000,000 aggregate principal amount of
its 5.88% Senior Notes, Due October 28, 2012 (collectively, the “2002 Notes”).

 

B.            Under and pursuant
to the separate and several Senior Note Purchase Agreements each dated as of
November 1, 1996 (collectively, the “1996 Note Agreements”), among the
Borrower, Holdings and each of the 1996 Noteholders, the Borrower has issued
and sold to the 1996 Noteholders $35,000,000 aggregate principal amount of its
7.42% Senior Notes, Due November, 2008 (the “1996 Notes”).

 

C.            Under and pursuant
to the separate and several Senior Note Purchase Agreements each dated as of
November 19, 1992 (collectively, as amended the “1992 Note Agreements”), 

 

 

among the
Borrower, Holdings and each of the 1992 Noteholders, the Borrower has issued
and sold to the 1992 Noteholders $32,000,000 aggregate principal amount of its
7.79% Senior Notes, Due November, 2002 (the “1992 Notes”).

 

D.            Under and pursuant
to that certain Credit Agreement dated as of June 28, 2001 (as such
agreement may be modified, amended, renewed or replaced, including any increase
in the amount thereof, the “Bank Credit Agreement”) among the
Borrower and the Lender, the Lender has made available to the Borrower certain
credit facilities in a current aggregate principal amount up to $25,000,000
(all amounts outstanding in respect of said credit facilities being hereinafter
collectively referred to as the “Loans”). 
Borrower’s obligations under the Bank Credit Agreement, including without
limitation its obligation to repay the Loans made thereunder, have been
guaranteed by Holdings pursuant to the Continuing Guarantee dated as of
June 28, 2001 executed by Holdings in favor of the Lender.

 

E.             In connection with
the execution of the 1992 Note Agreements and as security for the 1992 Notes
issued thereunder, IHOP Realty Corp., IHOP Properties, Inc. and IHOP
Restaurants, Inc., (individually, a “Subsidiary Guarantor” and collectively,
the “Subsidiary
Guarantors”) each of which is a wholly-owned subsidiary of the
Borrower, have guaranteed to the 1992 Noteholders the payment of the principal
of, premium, if any, and interest on the 1992 Notes and payment and performance
of all other obligations of the Borrower under the 1992 Note Agreements under
the Subsidiary Guarantee dated as of November 19, 1992 executed by IHOP
Realty Corp., the Subsidiary Guarantee dated as of December 29, 1993 executed
by IHOP Properties, Inc., and the Subsidiary Guarantee dated as of December 29,
1993 executed by IHOP Restaurants, Inc. (as such agreements may be modified,
amended, renewed or replaced, including any increase in the amount thereof,
individually, a “1992 Noteholder Guaranty” and collectively, the “1992
Noteholder Guarantees”).

 

F.             In connection with
the execution of the 1996 Note Agreements and as security for the 1996 Notes
issued thereunder, the Subsidiary Guarantors have guaranteed to the 1996
Noteholders the payment of the principal of, premium, if any, and interest on
the 1996 Notes and the payment and performance of all other obligations of the
Borrower under the 1996 Note Agreements under the Guaranty Agreement dated as
of November 1, 1996 executed by IHOP Realty Corp., the Guaranty Agreement
dated as of November 1, 1996 executed by IHOP Properties, Inc., and the
Guaranty Agreement dated as of November 1, 1996 executed by IHOP
Restaurants, Inc. (as such agreements may be modified, amended, renewed or
replaced, including any increase in the amount thereof, individually, a “1996
Noteholder Guaranty” and collectively, the “1996 Noteholder Guarantees”).

 

G.            On December 31,
2001, IHOP Restaurants, Inc., a Subsidiary Guarantor, merged into the
Company.  In connection with the
execution of the 2002 Note Agreements and as security for the 2002 Notes issued
thereunder, IHOP Realty Corp., and IHOP Properties, Inc. have guaranteed to the
2002 Noteholders the payment of the principal of, premium, if any, and interest
on the 2002 Notes and the payment and performance of all other obligations of
the Borrower under the 2002 Note Agreements under the Subsidiary Guarantee
Agreement dated as of October 28, 2002 executed by IHOP Realty Corp. and
IHOP Properties, Inc (as such 

 

2

 

agreement may be
modified, amended, renewed or replaced, including any increase in the amount
thereof, the “2002 Noteholder Guarantee”).

 

H.            In connection with
the execution of the Bank Credit Agreement and as support for the Loans made
thereunder, the Subsidiary Guarantors have guaranteed to the Lender the payment
of the Loans and all other obligations of the Borrower under the Bank Credit
Agreement under the Subsidiary Guarantee dated as of June 28, 2001
executed by IHOP Realty Corp., the Subsidiary Guarantee dated as of
June 28, 2001 executed by IHOP Properties, Inc., and the Subsidiary
Guarantee dated as of June 28, 2001 executed by IHOP Restaurants, Inc. (as
such agreements may be modified, amended, renewed or replaced, including any
increase in the amount thereof, individually, a “Lender Subsidiary Guarantee”
and collectively, the “Lender Subsidiary Guarantees”).  The Lender Subsidiary Guarantee, the 1992
Noteholder Guarantees, the 1996 Noteholder Guarantees, the 2002 Noteholder
Guarantee and the Additional Permitted Subsidiary Guarantees, if any, are each
hereinafter referred to individually, as a “Subsidiary Guaranty” and
collectively, as the “Subsidiary Guarantees.”

 

I.              Each of the
Creditors desires to provide for their respective rights in respect of the
Subsidiary Guarantees and certain collections from the Subsidiary Guarantors
and to make certain other commitments and undertakings in connection with the
1992 Note Agreements, the 1996 Note Agreements, the 2002 Note Agreements, the
Bank Credit Agreement, the Additional Debt Facility Agreements, if any, the
Subsidiary Guarantees, the obligations incurred by the Subsidiary Guarantors
under such agreements and the rights of the Creditors under such agreements.

 

J.             The 1992
Noteholders, the 1996 Noteholders, the 2002 Noteholders and the Lenders hereby
contemplate that in the event that any of the Subsidiary Guarantors execute and
deliver an Additional Permitted Subsidiary Guarantee, the beneficiary of such
Additional Permitted Subsidiary Guarantee shall become a party to this
Agreement upon compliance with the terms and conditions set forth in §3.4
hereof.

 

Now, Therefore, in consideration of the premises and other
good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.                                                 DEFINITIONS.

 

The following terms shall
have the meanings assigned to them below in this §1 or in the provisions of
this Agreement referred to below:

 

“Additional Debt Facility”
shall mean Debt of the Borrower which is guaranteed by an Additional Permitted
Subsidiary Guarantee.

 

“Additional Debt Facility Agreement”
shall mean the agreement executed and delivered by the Borrower and the
Additional Lenders evidencing the Additional Debt Facility.

 

3

 

“Additional Lender”
shall have the meaning assigned thereto in the introductory paragraph hereto.

 

“Additional Permitted Subsidiary
Guarantees” shall mean those Guarantees delivered by any
Subsidiary Guarantor which guarantees any of the Borrower’s Guaranteed
Obligations 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 Intercreditor Agreement.

 

“Agreement” means
this Amended and Restated Intercreditor Agreement, as the same may be modified,
amended, renewed or replaced from time to time.

 

“Bank Credit Agreement”
shall have the meaning assigned thereto in the Recitals hereof.

 

“Bankruptcy Proceeding”
shall mean, with respect to any person, a general assignment of such person for
the benefit of its creditors, or the institution by or against such person of
any proceeding seeking relief as debtor, or seeking to adjudicate such person
as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment or
composition of such person or its debts, under any law relating to bankruptcy,
insolvency, reorganization or relief of debtors, or seeking appointment of a
receiver, trustee, custodian or other similar official for such person or for
any substantial part of its property.

 

“Borrower” shall
have the meaning assigned thereto in the Recitals hereof.

 

“Borrower’s Guaranteed Obligations”
shall mean all principal of, premium, if any, and interest on, the 2002 Notes,
the 1996 Notes, the 1992 Notes, the Loans and the Additional Debt Facilities,
if any, and all other obligations of the Borrower under or in respect of the
2002 Notes, 1996 Notes, the 1992 Notes, the Loans and the Additional Debt
Facilities, if any, under the 2002 Note Agreements, the 1996 Note Agreements,
the 1992 Note Agreements, the Bank Credit Agreement and the Additional Debt
Facility Agreements and any other obligations of the Borrower to the Creditors
which are guaranteed by the Subsidiary Guarantees; provided that any amount of
such Borrower’s Guaranteed Obligations which is not allowed as a claim
enforceable against the Borrower in a Bankruptcy Proceeding under applicable
law shall be excluded from the computation of “Borrower’s Guaranteed
Obligations” hereunder.

 

“Creditor” shall
have the meaning assigned thereto in the introductory paragraph hereto.

 

“Excess Guaranty Payment”
shall mean as to any Creditor an amount equal to the Guaranty Payment received
by such Creditor less the Pro Rata Share of Guaranty Payments to which such
Creditor is then entitled.

 

“Guaranty Payment”
shall have the meaning assigned thereto in §2.

 

“Lender” shall
have the meaning assigned thereto in the introductory paragraph hereto.

 

“Lender Subsidiary Guarantee”
and “Lender
Subsidiary Guarantees” shall have the meanings assigned thereto in
the Recitals hereof.

 

4

 

“Loans” shall have
the meaning assigned thereto in the Recitals hereof.

 

“1992 Note Agreements”
shall have the meaning assigned thereto in the Recitals hereof.

 

“1996 Note Agreements”
shall have the meaning assigned thereto in the Recitals hereof.

 

“2002 Note Agreements”
shall have the meaning assigned thereto in the Recitals hereof.

 

“1992 Noteholder”
shall have the meaning assigned thereto in the introductory hereto.

 

“1996 Noteholder”
shall have the meaning assigned thereto in the introductory paragraph hereto.

 

“2002 Noteholder”
shall have the meaning assigned thereto in the introductory paragraph hereto.

 

“1992 Noteholder Guaranty” and
“1992
Noteholder Guarantees” shall have the meanings assigned thereto the
Recitals hereof.

 

“1996 Noteholder Guaranty” and
“1996
Noteholder” meanings assigned thereto in the Recitals hereof.

 

“2002 Noteholder Guarantee”
shall have the meaning assigned thereto in the 
Recitals hereof.

 

“1992 Notes” shall
have the meaning assigned thereto in the Recitals hereof.

 

“1996 Notes” shall
have the meaning assigned thereto in the Recitals hereof.

 

“2002 Notes” shall
have the meaning assigned thereto in the Recitals hereof.

 

“Prior Agreement”
shall have the meaning assigned thereto in the introductory paragraph hereto.

 

“Pro Rata Share of Guaranty
Payments” shall mean as of the date of any Guaranty Payment
to a Creditor under any Subsidiary Guaranty an amount equal to the product
obtained by multiplying (x) the amount of all Guaranty Payments made by the
Subsidiary Guarantors to all Creditors concurrently with the payments to such
Creditor less all reasonable costs incurred by such creditors in connection
with the collection of such Guaranty Payments by (y) a fraction, the numerator
of which shall be the Specified Amount owing to such Creditor, and the
denomination of which is the aggregate amount of all outstanding Borrower’s
Guaranteed Obligations (without giving effect in the denomination to the
application of any such Guaranty Payments).

 

“Receiving Creditor”
shall have the meaning assigned thereto in §2.

 

5

 

“Specified Amount”
shall mean as to any Creditor the aggregate amount of the Borrower’s Guaranteed
Obligations owed to such Creditor.

 

“Subsidiary Guarantor” and
“Subsidiary
Guarantors” shall have the meanings assigned thereto in the Recitals
hereof.

 

“Subsidiary Guaranty” and
“Subsidiary
Guarantees” shall have the meanings assigned thereto in the Recitals
hereof.

 

Section 2.                                                 Sharing of Recoveries.

 

Each Creditor hereby
agrees with each other Creditor that payments (including payments made through
setoff of deposit balances or otherwise or payments or recoveries from any
security interest granted to any Creditor) made pursuant to the terms of any
Subsidiary Guaranty (a “Guaranty Payment”) (x) within 90
days prior to the commencement of a Bankruptcy Proceeding with respect to any
Subsidiary Guarantor or the Borrower or (y) following the acceleration of
the 2002 Notes, the 1996 Notes, the 1992 Notes or the Loans or the acceleration
of any other Borrower’s Guaranteed Obligation, shall be shared so that each
Creditor shall receive its Pro Rata Share of Guaranty Payments.  Accordingly, each Creditor hereby agrees
that in the event (a) an event described in clauses (x) or (y) above
shall have occurred, (b) any Creditor shall receive a Guaranty Payment (a “Receiving
Creditor”), and (c) any other Creditor shall not concurrently
receive its Pro Rata Share of Guaranty Payments from the same Subsidiary
Guarantor, then the Receiving Creditor shall promptly remit the Excess Guaranty
Payment to each other Creditor who shall then be entitled thereto so that after
giving effect to such payment (and any other payments then being made by any
other Receiving Creditor pursuant to this §2) each Creditor shall have received its
Pro Rata Share of Guaranty Payments.

 

Any such payments
shall be deemed to be and shall be made in consideration of the purchase for
cash at face value, but without recourse, ratably from the other Creditors such
amount of 2002 Notes, 1996 Notes, 1992 Notes, Loans or Additional Debt
Facility, if any, as the case may be, to the extent necessary to cause such
Creditor to share such Excess Guaranty Payment with the other Creditors as
hereinabove provided; provided, however, that if any such
purchase or payment is made by any Receiving Creditor and if such Excess
Guaranty Payment or part thereof is thereafter recovered from such Receiving
Creditor by any Subsidiary Guaranty (including, without limitation, by any
trustee in bankruptcy of any Subsidiary Guaranty or any creditor thereof), the
related purchase from the other Creditors shall be rescinded ratably and the
purchase price restored as to the portion of such Excess Guaranty Payment so
recovered, but without interest; and provided further nothing herein contained
shall obligate any Creditor to resort to any setoff, application of deposition
balance or other means of payment under any Subsidiary Guaranty or avail itself
of any recourse by resort to any property of the Borrower or any Subsidiary
Guarantor, the taking of any such action to remain within the absolute
discretion of such Creditor without obligation of any kind to the other
Creditors to take any such action.

 

6

 

Section 3.                                                 Agreements among the Creditors.

 

Section 3.1.           Independent
Actions by Creditors. 
Nothing contained in this Agreement shall prohibit any Creditor from
accelerating the maturity of, or demanding payment from any Subsidiary Guaranty
on, any Borrower’s Guaranteed Obligation of the Borrower to such Creditor or
from instituting legal action against the Borrower or any Subsidiary Guarantor
to obtain a judgment or other legal process in respect of such Borrower’s
Guaranteed Obligation, but any funds received from any Subsidiary Guarantor in
connection with any recovery therefrom shall be subject to the terms of this
Agreement.

 

Section 3.2.           Relation of
Creditors.  This
Agreement is entered into solely for the purposes set forth herein, and no
Creditor assumes any responsibility to any other party hereto to advise such
other party of information known to such other party regarding the financial
condition of the Borrower or any Subsidiary Guarantor or of any other
circumstances bearing upon the risk of nonpayment of any Borrower’s Guaranteed
Obligation.  Each Creditor specifically
acknowledges and agrees that nothing contained in this Agreement is or is
intended to be for the benefit of the Borrower or any Subsidiary Guarantor and
nothing contained herein shall limit or in any way modify any of the
obligations of the Borrower or any Subsidiary Guarantor to the Creditors.

 

Section 3.3.           Acknowledgment
of Guarantees.  The
Lender hereby expressly acknowledges the existence of the 1992 Noteholder
Guarantees, the 1996 Noteholder Guarantees and the 2002 Noteholder
Guarantee.  The 1992 Noteholders hereby
expressly acknowledge the existence of the Lender Subsidiary Guarantees, the
1996 Noteholder Guarantees and the 2002 Noteholder Guarantee.  The 1996 Noteholders hereby expressly
acknowledge the existence of the Lender Subsidiary Guarantees, the 1992
Noteholder Guarantees and the 2002 Noteholder Guarantee.  The 2002 Noteholders hereby expressly
acknowledge the existence of the Lender Subsidiary Guarantees, the 1992
Noteholder Guarantees and the 1996 Noteholder Guarantees. 

 

Section 3.4.           Additional Lenders.  Additional Persons may becomes “Creditors”
hereunder by executing and delivering to each of the then existing Creditors
(i) a copy of this Agreement so executed and (ii) a copy of the
agreement or documents pursuant to which such Person becomes a creditor of the
Borrower and of any Subsidiary Guarantor. 
Accordingly, upon the execution and delivery of such copy of this
Agreement by any such Person, such Person shall, upon the acknowledgment of the
then existing Creditors, thereinafter become a Creditor for all purposes of
this Agreement.

 

Section 4.                                                 Miscellaneous.

 

Section 4.1.           Entire Agreement.  This Agreement represents the entire
Agreement among the Creditors and, except as otherwise provided, this Agreement
may not be altered, amended or modified except in a writing executed by all the
parties to this Agreement.

 

Section 4.2.           Notices. 
Notices hereunder shall be given to the Creditors at their addresses as
set forth in the 2002 Note Agreements, the 1996 Note Agreements, the 1992 Note
Agreements, the Bank Credit Agreement or the Additional Debt Facility
Agreements, as the case

 

7

 

may be, or at such
other address as may be designated by each in a written notice to the other
parties hereto.

 

Section 4.3.           Successors and
Assigns.  This
Agreement shall be binding upon and inure to the benefit of each of the
Creditors and their respective successors and assigns, whether so expressed or
not, and, in particular, shall inure to the benefit of and be enforceable by
any future holder or holders of any Borrower’s Guaranteed Obligations, and the
term “Creditor” shall include any such subsequent holder of Borrower’s
Guaranteed Obligations, wherever the context permits.

 

Section
4.4.           Consents,
Amendment, Waivers. 
All amendments, waivers or consents of any provision of this Agreement
shall be effective only if the same shall be in writing and signed by all of
the Creditors.

 

Section 4.5.           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois.

 

Section 4.6.           Counterparts. 
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one Agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart.

 

Section 4.7.           Severability. 
In case any one or more of the provisions contained in this Agreement
shall be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not in any way be affected or impaired thereby.

 

Section 4.8.           Expenses. 
In the event of any litigation to enforce this Agreement, the prevailing
party shall be entitled to its reasonable attorney’s fees (including the
allocated costs of in-house counsel).

 

8

 

In Witness Whereof, each of the parties hereto has caused
this Agreement to be executed as of the date first above written.

 

	
   

  	
  Wells Fargo Bank, National Association,

  the Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
					

 

9

 

	
   

  	
  J. Romeo & Co., as nominee for MONY Life

  Insurance Company (formerly Mutual

  Life Insurance Company of New York), a

  1992 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. Romeo & Co., as nominee for MONY Life

  Insurance Company of America, a 1992

  Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MONY Life Insurance Company of

  America, a 2002 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  MONY Capital Management, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

10

 

	
   

  	
  The Manufacturers Life Insurance

  Company, a 1992 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  

 

11

 

	
   

  	
  The Canada Life Assurance Company, a

  1992 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  

 

12

 

	
   

  	
  Modern Woodmen of America, a 1992

  Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Modern Woodmen of America, a 2002

  Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  

 

13

 

	
   

  	
  Jackson National Life Insurance Company, 

  a 1996 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  PPM America,
  Inc., as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  

 

14

 

	
   

  	
  Phoenix Life Insurance Company (formerly

  known as Phoenix Home Life Mutual

  Insurance Company), a 1996
  Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Phoenix Life Insurance Company, a 2002

  Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

15

 

	
   

  	
  United of OMAHA Life
  Insurance Company,

  a 1996 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  United of Omaha Life 
  Insurance Company,

  a 2002 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

16

 

	
   

  	
  MetLife INVESTORS USA
  Insurance

  Company, a 1996 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Metropolitan Life Insurance Company, as

  Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
						

 

17

 

	
   

  	
  AIG Annuity Insurance Company, a 2002

  Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  AIG Global Investment Corp., investment

  adviser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The Variable Annuity Life Insurance

  Company, a 2002 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  AIG Global Investment Corp., investment adviser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  American General Assurance Company, a

  2002 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  AIG Global Investment Corp., investment adviser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Merit Life Insurance Co., a 2002 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  AIG Global Investment Corp., investment adviser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  

 

18

 

	
   

  	
   

  
	
   

  	
  The Franklin Life Insurance Company,

  a 1992 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  AIG Global Investment Corp., investment adviser

  
	
   

  
	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

19

 

	
   

  	
  Nationwide Life and Annuity Insurance

  Company, a 2002 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Nationwide Life Insurance Company, a 2002

  Noteholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Nationwide Life Insurance Company of

  America, a 2002 Noteholder

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
								

 

20

 

	
   

  	
  [Additional Lender]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

21

 

The undersigned
hereby acknowledge and agree to the foregoing Agreement.

 

	
   

  	
  International House of Pancakes, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP Realty Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP Properties, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]