Document:

APPLEBEE'S INTERNATIONAL, INC.
                     NONQUALIFIED DEFERRED COMPENSATION PLAN
                                TABLE OF CONTENTS
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ARTICLE                                                                                                         Page

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ARTICLE I PURPOSE AND EFFECTIVE DATE..............................................................................1
   1.01 TITLE.....................................................................................................1
   1.02 PURPOSE...................................................................................................1
   1.03 EFFECTIVE DATE............................................................................................1

ARTICLE II DEFINITIONS AND CONSTRUCTION OF THE PLAN DOCUMENT......................................................1
   2.01 ANNUAL CASH INCENTIVE COMPENSATION........................................................................1
   2.02 BENEFICIARY...............................................................................................1
   2.03 BOARD.....................................................................................................1
   2.04 BOOKKEEPING ACCOUNT.......................................................................................1
   2.05 CHANGE IN CONTROL.........................................................................................1
   2.06 CODE......................................................................................................1
   2.07 COMMITTEE.................................................................................................1
   2.08 COMPANY...................................................................................................1
   2.09 COMPENSATION..............................................................................................2
   2.10 DEFERRAL AGREEMENT........................................................................................2
   2.11 DEFERRED COMPENSATION.....................................................................................2
   2.12 ELECTION DATE.............................................................................................2
   2.13 EXCESS COMPENSATION.......................................................................................3
   2.14 EXECUTIVE.................................................................................................3
   2.15 FIXED RATE................................................................................................3
   2.16 GROSS BASE SALARY.........................................................................................3
   2.17 MEASURING INVESTMENTS.....................................................................................3
   2.18 PARTICIPANT...............................................................................................3
   2.19 PLAN......................................................................................................3
   2.20 PLAN YEAR.................................................................................................3
   2.21 RETIREMENT................................................................................................4
   2.20 TERMINATION OF SERVICE....................................................................................4
   2.21 VALUATION DATE............................................................................................4
   2.22 GENDER AND NUMBER.........................................................................................4
   2.23 TITLES....................................................................................................4

ARTICLE III ELIGIBILITY AND PARTICIPATION.........................................................................4
   3.01 ELIGIBILITY...............................................................................................4
   3.02 PARTICIPATION.............................................................................................4

ARTICLE IV DEFERRAL OF COMPENSATION...............................................................................4
   4.01 DEFERRED SALARY...........................................................................................4
   4.02 DEFERRAL AGREEMENT........................................................................................5
   4.03 NO DEFERRAL WITHOUT AGREEMENT.............................................................................5
   4.04 DURATION OF DEFERRAL AGREEMENT............................................................................5

ARTICLE V DEFERRAL ACCOUNT AND CREDITING..........................................................................5
   5.01 BOOKKEEPING ACCOUNT.......................................................................................5
   5.02 EARNINGS..................................................................................................5

ARTICLE VI DISTRIBUTION...........................................................................................6
   6.01 AMOUNT OF BENEFITS........................................................................................6
   6.02 TIME AND METHOD OF PAYMENT................................................................................6
   6.03 FORM OF PAYMENT...........................................................................................7

ARTICLE VII HARDSHIP DISTRIBUTIONS................................................................................7
   7.01 HARDSHIP..................................................................................................7

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ARTICLE VIII BENEFICIARY..........................................................................................7
   8.01 BENEFICIARY DESIGNATION...................................................................................7
   8.02 PROPER BENEFICIARY........................................................................................8
   8.03 MINOR OR INCOMPETENT BENEFICIARY..........................................................................8

ARTICLE IX TAXES..................................................................................................8
   9.01 WITHHOLDING...............................................................................................8

ARTICLE X ADMINISTRATION OF THE PLAN..............................................................................8
   10.01 MAJORITY VOTE............................................................................................8
   10.02 FINALITY OF DETERMINATION................................................................................8
   10.03 CERTIFICATES AND REPORTS.................................................................................9
   10.04 INDEMNIFICATION AND EXCULPATION..........................................................................9
   10.05 EXPENSES.................................................................................................9

ARTICLE XI CLAIMS PROCEDURE.......................................................................................9
   11.01 WRITTEN CLAIM............................................................................................9
   11.02 DENIED CLAIM.............................................................................................9
   11.03 REVIEW PROCEDURE.........................................................................................9
   11.04 COMMITTEE REVIEW........................................................................................10

ARTICLE XII NATURE OF COMPANY'S OBLIGATION.......................................................................10
   12.01 COMPANY'S OBLIGATION....................................................................................10
   12.02 CREDITOR STATUS.........................................................................................10

ARTICLE XIII MISCELLANEOUS.......................................................................................10
   13.01 WRITTEN NOTICE..........................................................................................10
   13.02 CHANGE OF ADDRESS.......................................................................................10
   13.03 MERGER. CONSOLIDATION OR ACQUISITION....................................................................10
   13.04 AMENDMENT AND TERMINATION...............................................................................10
   13.05 EMPLOYMENT..............................................................................................11
   13.06 NONTRANSFERABILITY......................................................................................11
   13.07 LEGAL FEES..............................................................................................11
   13.08 TAX WITHHOLDING.........................................................................................11
   13.09 ACCELERATION OF PAYMENT.................................................................................11
   13.10 APPLICABLE LAW..........................................................................................11

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ARTICLE I

                           PURPOSE AND EFFECTIVE DATE

1.01  Title  This  Plan  shall be known as the  Applebee's  International,  Inc.
Nonqualified Deferred Compensation

Plan (hereinafter referred to as the "Plan").

1.02 Purpose The purpose of the Plan is to permit eligible members of management
and highly compensated employees to defer future compensation.

1.03     Effective Date  The Effective Date of the Plan shall be April 1, 2000.

ARTICLE II

                DEFINITIONS AND CONSTRUCTION OF THE PLAN DOCUMENT

2.01 Annual Cash Incentive  Compensation  "Annual Cash  Incentive  Compensation"
shall mean the bonus payable under the Company's  1999  Management and Executive
Incentive Plan.

2.02 Beneficiary "Beneficiary" shall mean the person or persons or the estate of
a Participant entitled to receive any benefits under this Plan.

2.03  Board   "Board"   shall  mean  the  Board  of  Directors   of   Applebee's
International, Inc.

2.04 Bookkeeping  Account A "Bookkeeping  Account" will be established only as a
bookkeeping  record for each Participant who elects to defer  compensation under
this Plan and may, at the discretion of the  Committee,  include one (1) or more
subaccounts to reflect amounts credited to a Participant under the various terms
of this Plan.

2.05 Change in Control "Change in Control" means an event  constituting a Change
in Control under the Company's 1995 Equity Incentive Plan.

2.06     Code  "Code" means the Internal Revenue Code of 1986 as amended.

2.07  Committee  "Committee"  means the Deferred  Compensation  Committee of the
Company, which shall function as plan administrator under this Plan.

2.08 Company  "Company"  shall mean Applebee's  International,  Inc., a Delaware
company.

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2.09 Compensation "Compensation" shall mean an Executive's compensation received
from the Company for services  performed,  which includes an Executive's  Annual
Cash Incentive Compensation and the Executive's Gross Base Salary.

2.10 Deferral  Agreement  "Deferral  Agreement" means a written form provided by
the  Committee  that an Executive  submits to the  Committee  by the  applicable
Election  Date, on which the Executive may elect the following for the Plan Year
immediately following the applicable Election Date:

(a)      The percentage of the Executive's Gross Base Salary to be deferred;

(b)      The  percentage  or  dollar  amount  of  the  Executive's  Annual  Cash
         Incentive Compensation to be deferred;

(c)      Whether  all or none of the  Executive's  Excess  Compensation  will be
         deferred;

(d)      The specific  date or the specific  event,  within 45 days of which any
         such deferred  amounts and earnings thereon shall be paid to Executive;
         and

(e)      The Measuring  Investments for  determining  earnings to be credited to
         the Executive's Bookkeeping Account for such Plan Year.

No Deferral Agreement shall be effective until acknowledged,  in writing, by the
Company.

2.11  Deferred  Compensation  "Deferred  Compensation"  means the aggregate of a
Participant's  deferred  Excess  Compensation,  deferred  Gross Base  Salary and
deferred Annual Cash Incentive Compensation, and earnings attributable thereto.

2.12 Election Date The  "Election  Date" is the date by which an Executive  must
submit a valid Deferral  Agreement to the Committee with respect to a given Plan
Year. The applicable Election Dates are as follows:

(a)      March 31, 2000 with respect to

(i)      Gross Base Salary paid in 2000 after March 31, 2000, and

(ii)     Annual Cash Incentive  Compensation  earned in 2000 (regardless of when
         paid)  for  Executives  who  are  eligible  to  participate  as of  the
         Effective Date;

(b)      For Plan Years  after  2000,  the last day of the last  payroll  period
         ending prior to such Plan Year,  or such earlier date as  determined by
         the Committee, with respect to

(i)      Gross Base Salary paid in such Plan Year, and

(ii)     Annual Cash Incentive Compensation earned in such Plan Year (regardless
         of when paid).

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Compensation is considered  earned during a period if the  Executive's  services
for which Executive is to paid are performed during that period.

Examples:

o                          The  Election  Date for the  payment  of  Gross  Base
                           Salary to be paid on January 5, 2001 is December  22,
                           2000,  because  December  22, 2000 is the last day of
                           the last payroll  period  ending prior to 2001,  when
                           that payment of Gross Base Salary will be paid.

o                          The  Election  Date  for the  Annual  Cash  Incentive
                           Compensation  to be paid in early  2001 is March  31,
                           2000, because that Annual Cash Incentive Compensation
                           will be earned in 2000.

o                          The  Election  Date  for the  Annual  Cash  Incentive
                           Compensation to be paid in early 2002 is December 22,
                           2000,  because  December  22, 2000 is the last day of
                           the last payroll  period  ending prior to 2001,  when
                           that  Annual  Cash  Incentive  Compensation  will  be
                           earned.

2.13  Excess  Compensation  "Excess  Compensation"  shall mean any  compensation
payable  to an  Executive  by the  Company  for a Plan  Year  that  would not be
deductible to the Company due to the application of section 162(m) of the Code.

2.14 Executive  "Executive"  shall mean an employee of the Company (a) whose job
title is any of the following: Vice President, Senior Vice President,  Executive
Vice President, President and Chief Executive Officer and (b) who is a member of
a select group of management or highly compensated employees.

2.15 Fixed Rate "Fixed  Rate"  shall mean a fixed rate of  earnings  for a given
calendar  quarter as determined by the Committee  prior to the  commencement  of
such calendar quarter.

2.16 Gross Base Salary  "Gross Base Salary"  shall mean an  Executive's  regular
earnings  from  the  Company  as  reported  on  Executive's  bi-weekly  earnings
statement.

2.17  Measuring  Investments  "Measuring  Investments"  shall  mean any  phantom
investment designated by the Committee that a Participant may elect to determine
the  earnings   (losses)  to  be  credited  pursuant  to  Section  5.02  to  the
Participant's Bookkeeping Account.

2.18 Participant  "Participant" means an Executive who has deferred Compensation
pursuant  to the terms of this Plan and whose  benefits  hereunder  have not yet
been paid.

2.19 Plan "Plan" means the Applebee's International,  Inc. Nonqualified Deferred
Compensation  Plan as described in this  instrument  and as amended from time to
time.

2.20 Plan  Year The  "Plan  Year" is the same as the  calendar  year;  provided,
however, that the first Plan Year shall be the period from the Effective Date to
December 31, 2000.

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2.21  Retirement   "Retirement"  means  the  termination  of  the  Participant's
employment as a regular employee of the Company and any division,  subsidiary or
affiliate thereof on or after the Participant attains age 59 1/2.

2.22 Termination of Service "Termination of Service" or similar expression means
the  termination of the  Participant's  employment as a regular  employee of the
Company and any division,  subsidiary or affiliate  thereof for any reason other
than Retirement.

2.23  Valuation Date  "Valuation  Date" shall mean the last day of each calendar
quarter  and  such  other  dates  as  determined  by the  Committee  in its sole
discretion; provided, however, that such Valuation Date(s) in effect on the date
of a Change in Control  shall  remain in effect  until  termination  of the Plan
unless the Plan is amended to provide for a different  definition  of  Valuation
Date.

2.24 Gender and Number  Wherever  the context so  requires,  masculine  pronouns
include the feminine and singular words shall include the plural.

2.25  Titles  Titles  of the  Articles  of this  Plan are  included  for ease of
reference  only and are not to be used for the purpose of construing any portion
or provision of this Plan document.

ARTICLE III

                          ELIGIBILITY AND PARTICIPATION

3.01 Eligibility  Eligibility for participation in this Plan shall be determined
on an individual basis by  recommendation  from the Chief Executive  Officer and
approved by the  Committee.  Once having been  selected  for  participation  and
approved by the  Committee,  an Executive  shall remain  eligible to participate
notwithstanding a Change in Control, except following a Termination of Service.

3.02 Participation An Executive, after having been selected for participation by
the Committee,  shall, as a condition to  participation,  complete and return to
the Committee a duly executed Deferral Agreement.

ARTICLE IV

                            DEFERRAL OF COMPENSATION

 4.01    Deferral Amounts Each Participant,  so long as he remains an Executive,
         may elect to defer his Compensation as follows:

(a)      Gross Base Salary in any whole  percentage  up to twenty  five  percent
         (25%);

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(b)      Annual  Cash  Incentive  Compensation  in any  dollar  amount  or whole
         percentage up to one hundred percent (100%); and

(c)      All or none of his Excess Compensation.

4.02 Deferral  Agreement An eligible  Executive  electing to defer  Compensation
with respect to a given Plan Year must submit his written Deferral  Agreement to
the  Committee  on or before the  Election  Date for that Plan Year.  A Deferral
Agreement submitted by the applicable Election Date shall result in the deferral
of the amount of  Compensation  elected that are earned in the  applicable  Plan
Year to the time(s) specified in the Deferral Agreement.  Once the Election Date
with respect to a Deferral Agreement passes,  the Deferred  Compensation for the
applicable Plan Year may not be reduced, except as provided in Article VII.

4.03 No Elective  Deferral Without Agreement A Participant who has not submitted
a valid Deferral Agreement to the Committee before the applicable  Election Date
may not  elect to defer  any  amount  of  Compensation  under  this Plan for the
applicable Plan Year.

4.04 Duration of Deferral Agreement Deferral Agreements remain in effect for the
Plan Year for which they apply. A Participant must file a new Deferral Agreement
for any subsequent Plan Year. The terms of any Deferral  Agreement may, but need
not be, similar to the terms of any prior Deferral Agreement.

ARTICLE V

                         DEFERRAL ACCOUNT AND CREDITING

5.01 Bookkeeping Account The amount of a Participant's Deferred Compensation for
a Plan  Year  shall  be  credited  to a  separate  Bookkeeping  Account  for the
Participant.  A Participant's  Deferred  Compensation  for subsequent Plan Years
shall be added to his Bookkeeping Account.

5.02  Earnings As of each  Valuation  Date and such other times as the Committee
may designate,  the amount credited to each  Participant's  Bookkeeping  Account
shall be credited with earnings.  Through December 31, 2000 the rate of earnings
shall  be the  Fixed  Rate.  Thereafter,  the rate at  which  earnings  shall be
credited to a Participant's  Bookkeeping Account shall be the Fixed Rate, unless
the  Participant  elects to have earnings  determined in accordance  with one or
more  Measuring  Investments.  If Measuring  Investments  are elected,  then the
Participant's  Bookkeeping Account shall be credited with an amount equal to the

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deemed net earnings or losses that would have been earned (lost), without regard
to  commissions  or costs that would be incurred  if the amount  credited to the
Participant's  Bookkeeping  Account  were  actually  invested  in the  Measuring
Investments,   if  the  Company  had  invested  the  amounts   credited  to  the
Participant's  Bookkeeping  Account  in  the  Measuring  Investments.  Such  net
earnings and losses shall be determined pursuant to the method or methods deemed
appropriate by the Committee in its  discretion,  which methods may be different
for different Measuring Investments, may vary from time to time, need not be the
same for determining  net earnings  versus losses,  and may be based on the cash
receipts or the accrual method with any modifications  deemed appropriate by the
Committee in its discretion;  provided,  however, that the Measuring Investments
and method of  determining  net  earnings  and losses in effect at the time of a
Change in Control  shall remain in effect until  termination  of the Plan unless
the Plan is amended pursuant to Section 13.04 of the Plan.

Except as provided above, the Committee may remove or add Measuring  Investments
at any time in its sole  and  absolute  discretion.  If a  Measuring  Investment
elected by a  Participant  is  removed,  the Fixed Rate shall apply in its place
until the Participant elects a replacement Measuring Investment. For purposes of
calculating  earnings and losses  attributable  to a Measuring  Investment,  any
amount shall be deemed to be invested in the Measuring Investment as of the date
determined  appropriate by the  Committee.  Provided a Change in Control has not
occurred,  the  Committee may adjust any amount of deemed net earnings or losses
which would otherwise be paid or debited, respectively, to take into account the
hypothetical  tax effect thereof on the Company or its  shareholders  determined
appropriate by the Committee.

ARTICLE VI

                                  DISTRIBUTION

6.01 Amount of Benefits The Company's  liability to any  Participant at any time
hereunder  shall  be  an  amount  equal  to  the  dollar  amount  credited  to a
Participant's  Bookkeeping  Account as of the Valuation Date  coincident with or
immediately preceding such date.

6.02     Time and Method of Payment

(a)               Deferral Agreement. Payment shall be made within 45 days after
                  the  date  or   occurrence   of  the  event   specified  on  a
                  Participant's  Deferral Agreement,  but in any event no sooner
                  than 12 months after the date the amounts  deferred  otherwise
                  would have been paid.

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(b)               Termination of Service.  If a Participant has a Termination of
                  Service  prior  to  the  date  for  payment   elected  by  the
                  Participant  on  the  Participant's  Deferral  Agreement,  all
                  amounts  deferred to such later dates shall be accelerated and
                  paid to the  Participant  within 45 days after his Termination
                  of Service.

(c)               Retirement.  If a  Participant  terminates  employment  due to
                  Retirement,   the  payment  of  the  amount  credited  to  the
                  Participant's  account shall not be  accelerated  but shall be
                  made at the  time(s)  elected  on the  Participant's  Deferral
                  Agreement(s).

(d)               Disability.  Notwithstanding  anything to the contrary, in the
                  event of the Participant's  disability prior to the payment of
                  the amount credited to the Participant's  Bookkeeping Account,
                  payment of such amount shall be made to the Participant within
                  45 days after the  January 1 next  following  commencement  of
                  disability.  Disability  for this purpose  shall be determined
                  under the Company's long term  disability plan as it exists at
                  the time of disability.

(e)               Death.  Notwithstanding anything to the contrary, in the event
                  of the Participant's  death prior to the payment of the amount
                  credited to the  Participant's  Bookkeeping  Account,  payment
                  shall be made within 45 days after the Participant's death.

(f)               Change  of  Payment  Date.  Notwithstanding  anything  to  the
                  contrary,  a  Participant  may  elect to defer  payment  of an
                  amount  if the  Participant  makes  the  election  at least 12
                  months prior to the scheduled date of payment.

6.03     Form of Payment All payments hereunder shall be made in a single sum in
         cash.

ARTICLE VII

                             HARDSHIP DISTRIBUTIONS

7.01 Hardship At the request of a Participant  before or after the Participant's
retirement  or  Termination  of  Service,  the  Committee  may,  in its sole and
absolute  discretion,  accelerate  and  cause  all or  part  of the  value  of a
Participant's  benefits due under this Plan to be paid within 45 days after such
request.  Accelerated  payments  at  the  request  of  the  Participant  or  the
Participant's  Beneficiaries  may be  allowed  only in the event of a  financial
hardship to the Participant or Beneficiary.  An accelerated distribution must be
limited to only that amount necessary to relieve the hardship.  In the event the
Committee  determines  the  existence  of a hardship  and  accelerates  payments
hereunder to a  Participant,  it shall suspend  future salary  deferrals by such
Participant  for  a  period  of  12  months  after  the  date  of  the  hardship
distribution.  If a Participant who is a member of the Committee makes a request
pursuant to this Section 7.01,  such  Participant  shall not  participate in the
Committee's deliberations with respect to his request.

ARTICLE VIII

                                   BENEFICIARY

8.01  Beneficiary  Designation A Participant  shall designate his Beneficiary to
receive  benefits under the Plan by completing the appropriate  form provided by
the  Committee.  If more than one (1)  Beneficiary  is named,  the shares and/or
percentage of each Beneficiary shall be indicated.  A Participant shall have the
right to change the  Beneficiary  by  submitting  to the  Committee  a Change of
Beneficiary  Form.  However,  no change of Beneficiary  shall be effective until
acknowledged, in writing, by the Committee or its designee.

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<PAGE>

8.02  Proper  Beneficiary  If  the  Company  has  any  doubt  as to  the  proper
Beneficiary to receive payments  hereunder,  the Company shall have the right to
withhold such payments  until the matter is finally  adjudicated.  However,  any
payment made by the  Company,  in good faith and in  accordance  with this Plan,
shall fully discharge the Company and the Committee from all further obligations
with respect to that payment.

8.03  Minor or  Incompetent  Beneficiary  In making any  payments  to or for the
benefit of any minor or an incompetent  Beneficiary,  the Committee, in its sole
and absolute discretion,  may make a distribution to a legal or natural guardian
or other relative of a minor or court appointed  committee of such  incompetent.
Or, it may make a  payment  to any  adult  with  whom the  minor or  incompetent
temporarily  or  permanently  resides.  The  receipt by a  guardian,  committee,
relative or other person shall be a complete  discharge to the Company.  Neither
the Committee nor the Company shall have any responsibility to see to the proper
application of any payments so made.

ARTICLE IX

                                      TAXES

9.01  Withholding All payments to be made to a Participant  under this Plan will
be  subject to  required  withholding  of  federal,  state and local  income and
employment taxes. Any amount required to be withheld currently with respect to a
Participant's  Compensation  that is deferred  under this Plan shall be withheld
from the Participant's Compensation that is not deferred.

ARTICLE X

                           ADMINISTRATION OF THE PLAN

10.01  Majority  Vote All  resolutions  or other  actions taken by the Committee
shall be by vote of a majority of those present at a meeting at which a majority
of the members are present,  or in writing by all the members then in office, if
they act without a meeting.

10.02 Finality of Determination  Subject to the Plan, the Committee from time to
time shall establish rules,  forms and procedures for the  administration of the
Plan. Except as herein otherwise  expressly  provided,  the Committee shall have
full and absolute discretion to (i) construe and interpret the Plan, (ii) decide
all  questions  arising with respect to the Plan,  including but not limited to,
eligibility to participate in the Plan, and (iii)  determine the amount,  manner
and time of payment of any  benefits  to any  Participant  or  Beneficiary.  The
respective  decisions,  actions and records of the Committee shall be conclusive
and binding  upon the  Company  and all  persons  having or claiming to have any
right or interest in or under the Plan.

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<PAGE>

10.03 Certificates and Reports The members of the Committee and the officers and
directors  of the  Company  shall be entitled  to rely on all  certificates  and
reports made by any duly appointed accountants, and on all opinions given by any
duly  appointed  legal  counsel,  which  legal  counsel  may be counsel  for the
Company.

10.04  Indemnification  and  Exculpation  The Company  shall  indemnify and hold
harmless each member of the Committee (hereinafter referred to as "designee") in
connection  with its duties  under the Plan  against  any and all  expenses  and
liabilities  arising out of his membership on the Committee or administration of
the Plan or any  action or failure  to act by the  Committee,  any member of the
Committee or any designee,  except if such action or failure to act  constitutes
gross negligence or willful  misconduct.  Expenses against which a member of the
Committee or any designee shall be indemnified hereunder shall include,  without
limitation,  the amount of any settlement or judgment,  costs, counsel fees, and
related charges  reasonably  incurred in connection with a claim asserted,  or a
proceeding   brought   or   settlement   thereof.   The   foregoing   rights  of
indemnification  shall be in  addition  to any  other  rights  to which any such
member of the Committee or designee may be entitled as a matter of law.

10.05  Expenses  The  expenses of  administering  the Plan shall be borne by the
Company.

ARTICLE XI

                                CLAIMS PROCEDURE

11.01 Written Claim Benefits shall be paid in accordance  with the provisions of
this Plan.  The  Participant,  or a designated  Beneficiary  or any other person
claiming  through the  Participant,  shall make a written  request for  benefits
under  this  Plan.  This  written  claim  shall be  mailed or  delivered  to the
Committee. Such claim shall be reviewed by the Committee or his delegate.

11.02 Denied  Claim If the claim is denied,  in full or in part,  the  Committee
shall  provide a written  notice  within  ninety  (90)  days  setting  forth the
specific reasons for denial and any additional material or information necessary
to perfect the claim and an  explanation  of why such material or information is
necessary and  appropriate  information and explanation of the steps to be taken
if a review of the denial is desired.

11.03  Review  Procedure  If the claim is denied  and a review is  desired,  the
Participant  (or  Beneficiary)  shall notify the Committee,  in writing,  within
sixty (60) days (a claim shall be deemed denied if the  Committee  does not take
any action  within the  aforesaid  ninety (90) day period)  after receipt of the
written  notice of  denial.  In  requesting  a review,  the  Participant  or his
Beneficiary  may  request  a review  of the  Plan  document  or other  pertinent
documents  with regard to the Plan,  may submit any written issues and comments,
may  request an  extension  of time for such  written  submission  of issues and
comments  and may  request  that a hearing be held,  but the  decision to hold a
hearing shall be within the sole discretion of the Committee.

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<PAGE>

11.04  Committee  Review The decision on the review of the denied claim shall be
rendered  by the  Committee  within  sixty  (60) days  after the  receipt of the
request  for review (if no hearing is held) or within  sixty (60) days after the
hearing  if one is held.  The  decision  shall be  written  and shall  state the
specific reasons for the decision including reference to the specific provisions
of this Plan on which the decision is based.

ARTICLE XII

                         NATURE OF COMPANY'S OBLIGATION

12.01 Company's Obligation The Company's obligations under this Plan shall be an
unfunded and unsecured  promise to pay. The Company shall not be obligated under
any circumstances to fund its financial obligations under this Plan.

12.02  Creditor  Status Any assets which the Company may acquire or set aside to
help cover  financial  liabilities  are, and must,  remain general assets of the
Company  subject to the claims of its  creditors.  Neither  the Company nor this
Plan gives the Participant any beneficial ownership interest in any asset of the
Company.  All rights of  ownership  in any such assets are,  and remain,  in the
Company.

ARTICLE XIII

                                  MISCELLANEOUS

13.01 Written Notice Any notice which shall or may be given under this Plan or a
Deferral  Agreement  shall be in  writing  and shall be mailed by United  States
mail,  postage  prepaid.  If notice is to be given to the  Company,  such notice
shall be addressed to the Company at 4551 W. 107th Street,  Suite 100,  Overland
Park,  Kansas 66207 or, if notice is to an  Executive,  addressed to the address
shown on such Executive's most recent Deferral Agreement.

13.02 Change of Address Any party may, from time to time,  change the address to
which notices shall be mailed by giving written notice of such new address.

13.03 Merger,  Consolidation  or Acquisition  The Plan shall be binding upon the
Company,  its  assigns,  and  any  successor  company  which  shall  succeed  to
substantially  all of its assets and business  through  merger,  acquisition  or
consolidation, and upon an Executive, his Beneficiary, assigns, heirs, executors
and administrators.

13.04  Amendment and  Termination  The Company  retains the sole and  unilateral
right to terminate,  amend, modify or supplement this Plan, in whole or in part,
at any time.  This  right  includes  the right to make  retroactive  amendments.
However,  no Company action under this right shall reduce the amount credited to
any  Participant's  Bookkeeping  Account or any rights of any Participant or his
Beneficiary;  provided,  however,  that in the event of a Change in Control,  no
action to amend or  terminate  the Plan shall be  effective  without the express
written  consent of  two-thirds  (2/3's) or more of the  Participants  and their
Beneficiaries.  Notwithstanding anything to the contrary, as soon as practicable
following the termination of the Plan, each Participant  shall be paid an amount
equal to the sum credited to the Participant's Bookkeeping Account.

                                       10
<PAGE>

13.05 Employment This Plan does not provide a contract of employment between the
Company and the Participant, and the Company reserves the right to terminate the
Participant's  employment,  for any  reason,  at any time,  notwithstanding  the
existence of this Plan.

13.06  Nontransferability  Except  insofar as prohibited  by applicable  law, no
sale, transfer, alienation,  assignment, pledge, collateralization or attachment
of any  benefits  under this Plan shall be valid or  recognized  by the Company.
Neither the Participant,  his spouse, or designated Beneficiary,  shall have any
power to hypothecate, mortgage, commute, modify or otherwise encumber in advance
of any of the  benefits  payable  hereunder,  nor shall any of said  benefits be
subject to seizure for the payment of any debts, judgments, alimony maintenance,
owed by the Participant or his  Beneficiary,  or be transferable by operation of
law in the event of bankruptcy, insolvency or otherwise.

13.07  Legal Fees All  reasonable  legal fees  incurred by any  Participant  (or
former  Participant)  to  successfully  enforce his valid rights under this Plan
shall be paid by the Company in addition to sums due under this Plan.

13.08 Tax Withholding The Company may withhold from a payment any federal, state
or local taxes  required by law to be withheld  with respect to such payment and
such sum as the Company may reasonably  estimate as necessary to cover any taxes
for which the  Company  may be liable and which may be  assessed  with regard to
such payment.

13.09  Acceleration of Payment The Company  reserves the right to accelerate the
payment of any benefits  payable under this Plan at any time without the consent
of the  Participant,  his estate,  his  Beneficiary or any other person claiming
through the Participant.

13.10  Applicable  Law This Plan shall be  governed  by the laws of the state of
Missouri.

IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its
duly authorized officer on this _____day of March, 2000,  effective as set forth
herein.

                                                 APPLEBEE'S INTERNATIONAL, INC.

                                                 By
                                                    ---------------------------

                                       11SCHEDULE OF PARTIES RECEIVING INDEMNIFICATION AGREEMENTS

Erline Belton
W. Matthew Carpenter
Larry A. Cates
D. Patrick Curran
Eric L. Hansen
Mark S. Hansen
Jack P. Helms
Lloyd L. Hill
Janell Jones
Louis A. Kaucic
James W. Kirkpatrick
John F. Koch
Steven K. Lumpkin
David R. Parsley
Mark A. Peterson
Burton M. Sack
George D. Shadid
Robert T. Steinkamp
Julia A. Stewart
Harry B. Stroup
Carin L. Stutz
Douglas D. Waltman
John A. Weber

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