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Exhibit 10.1    
  

 
 

EMPLOYMENT AGREEMENT    
  

        This Employment Agreement (the "Agreement") is entered into as of the 15th day of July, 2002 (the "Effective Date"), between IHOP CORP., a Delaware corporation
(the "Company"), and Gregg Nettleton (the "Employee"). 

        Whereas,
the Board of Directors of the Company (the "Board") has approved and authorized the entry into this Agreement with the Employee; and 

        Whereas,
the parties desire to enter into this Agreement setting forth the terms and conditions for the employment relationship of the Employee with the Company. 

        Now,
Therefore, in consideration of the promises and mutual covenants and agreements herein contained and intending to be legally bound hereby, the Company and the Employee hereby agree
as follows: 

        1.    Employment.    The Employee is employed as Chief Marketing Officer of the Company from the Effective Date
through the Term of this Agreement (as defined in Section 2 hereof). In this capacity, the Employee shall have such duties and responsibilities as may be designated to him by the Board from
time to time and as are not inconsistent with the Employee's position with the Company, including the performance of duties with respect to any subsidiaries of the Company, as may be designated by the
Board. During the Employee's period of employment hereunder, the Employee shall be based in the principal offices of the Company in Southern California, and shall not be required to relocate outside
of Southern California to perform services hereunder, except for travel as reasonably required in the performance of his duties hereunder. 

        2.    Term.    The "initial term" of this Agreement shall be for the period commencing on the Effective Date and
ending on the second anniversary of the Effective Date; provided, however, that on the second
anniversary of the Effective Date, and on each subsequent anniversary date thereafter, the term of this Agreement shall automatically be extended for one additional year unless, not later than 90 days
prior to such applicable anniversary date, the Company or the Employee shall give notice not to extend this Agreement; and provided further, however, that, if a Change in Control (as defined in
Section 11(g)) occurs prior to the expiration of the Term of this Agreement, this Agreement shall remain in full force and effect and shall not expire prior to the last day of the 24th month
following the date of such Change in Control. The "Term of this Agreement" or "Term" shall mean, for purposes of this Agreement, both the "initial term" (as hereinbefore described) and any additional
term (created by extension, as described above), and the Term of this Agreement shall not be affected by the Employee's termination of employment. 

        3.    Salary.    Subject to the further provisions of this Agreement, the Company shall pay the Employee during the
Term of this Agreement a salary at an annual rate equal to $275,000, which shall be increased as of April 1, 2003 to $300,000, provided the Employee's performance up to that time meets
expectations as assessed by the Chief Executive Officer. Further, such salary shall be increased at such times, if any, and in such amounts as determined by the Board, which increases shall be
consistent with the historical business practices of the Company and the salary adjustments for other senior executives of the Company. Such salary shall be payable by the Company to the Employee not
less frequently than monthly and shall not be decreased at any time during the Term of this Agreement. Participation in deferred compensation, discretionary bonus, retirement, and other employee
benefit plans and in fringe benefits shall not reduce the salary payable to the Employee under this Section. 

        4.    Participation in Bonus, Retirement and Employee Benefit Plans.    The Employee shall be entitled to participate
equitably with other senior executives in any plan of the Company relating to bonuses, stock options, stock purchases, pension, thrift, profit sharing, life insurance, medical coverage, education, or
other retirement or employee benefits that the Company has adopted or may adopt for 

 

the benefit of its senior executives. For purposes of the Company's Executive Incentive Plan, Employee's target bonus will be 40% of his base pay. 

        5.    (a) Hiring Incentives.    Upon the Effective Date, or as soon as practicable thereafter, Employee shall receive
a signing bonus of $10,000 and an option to purchase a total of 20,000 shares of IHOP Corp. common stock. Such stock option shall be subject to the terms of the IHOP Corp. 2001 Stock Incentive
Plan, as amended, and a Stock Option Agreement setting forth, among other things, the option exercise vesting schedule and option exercise price. 

        (b)    Temporary Housing.    The company will house the Employee in either a hotel or corporate apartment until the
Employee's family relocates from Atlanta to Southern California. The decision on housing will
be determined at a later date depending on which is least expensive, given anticipated needs and travel. Additionally, the Company will reimburse the Employee for a weekly round trip flight to and
from Atlanta, if needed, until his family relocates. This period should not exceed 12 months and the cost will be capped at $30,000 excluding tickets already purchased at the signing of this
agreement and excluding relocation inspection travel costs for the Employee and the Employee's family. 

        (c)    Relocation.    The Employee shall be entitled to Relocation Assistance as outlined on Exhibit "A" attached
hereto. 

        6.    Fringe Benefits; Automobile.    The Employee shall be entitled to receive all other fringe benefits which are
now or may be provided to the Company's senior executives, provided, however, that the Company will pay the Employee $700 per month (until such time as the Employee's family moves to California) to
cover the continuation of coverage for the Employee and his family under their existing health insurance policy. In addition, the Company shall provide the Employee during the Term of this Agreement
with a car allowance of $850 per month, plus reimbursement of all automobile expenses such as gasoline, maintenance, insurance and vehicle registration, in accordance with the Company's general policy
on providing cars to senior executives. Notwithstanding the foregoing, the benefits provided under this Section 6 shall cease upon the Employee's Date of Termination (as defined in
Section 11(d)). 

        7.    Vacations.    The Employee shall be entitled to an annual paid vacation as determined in accordance with the
Company's general policy for senior executives. 

        8.    Business Expenses.    During such time as the Employee is rendering services hereunder, the Employee shall be
entitled to incur and be reimbursed for all reasonable business expenses and be provided allowances as are furnished to the Company's most senior executives under the Company's then current policies.
The Company agrees that it will reimburse the Employee for all such expenses upon the presentation by the Employee, from time to time, of an itemized account of such expenditures, setting forth the
date, the purposes for which incurred, and the amounts thereof, together with such receipts showing payments in conformity with the Company's established policies. Reimbursement shall be made within a
reasonable period after the Employee's submission of an itemized account. 

        9.    Insurance and Indemnity.    The Employee shall be added as an additional named insured under all appropriate
insurance policies now in force or hereafter obtained covering any officers or directors of the Company. The Company shall indemnify and hold the Employee harmless from any cost, expense or liability
arising out of or relating to any acts or decisions made by the Employee on behalf of or in the course of performing services for the Company to the same extent the Company indemnifies and holds
harmless other senior executive officers and directors of the Company and in accordance with the Company's established policies. 

        10.    Professional Services Allowance.    The Employee shall be entitled to reimbursement by the Company for expenses
incurred by him for personal legal, accounting, investment, estate planning 

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services or other similar services as outlined in the Company's Professional Services Allowance policy, in an amount to be determined by the Board, but in no event greater than $10,000 annually (or a
pro rata portion of such amount for any period of employment less than a full year); provided, however, that no reimbursement shall be made for any such expenses incurred by the Employee after such
Employee's Date of Termination. 

        11.    Termination.    

        (a)    Disability.    If, as a result of the Employee's incapacity due to physical or mental illness, he shall have
been absent from the full-time performance of his duties with the Company for 90 consecutive days or 180 days within any 12-month period, his employment may be
terminated by the Company for "Disability." 

        (b)    Cause.    Subject to the notice provisions set forth below, the Company may terminate the Employee's employment
for "Cause" at any time. "Cause" shall mean termination upon: (1) the willful failure by the Employee to substantially perform his duties with the Company (other than any such failure resulting
from his incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to him by the Board, which demand specifically identifies the manner in which
the Board believes that he has not substantially performed his duties; (2) the Employee's willful misconduct that is demonstrably and materially injurious to the Company, monetarily or
otherwise; or (3) the Employee's commission of such acts of dishonesty, fraud, misrepresentation or other acts of moral turpitude as would prevent the effective performance of his duties. For
purposes of this subsection (b), no act, or failure to act, on the Employee's part shall be deemed "willful" unless done, or omitted to be done, by him not in good faith and without the reasonable
belief that his action or omission was in the best interest of the Company. Notwithstanding the foregoing, the Employee shall not be deemed to have been terminated for Cause unless and until there
shall have been delivered to him a copy of a resolution duly adopted by the affirmative vote of a majority of the non-employee members of the Board at a meeting of such members (after
reasonable notice to him and an opportunity for him, together with his counsel, to be heard before such members of the Board), finding that he has engaged in the conduct set forth above in this
subsection (b) and specifying the particulars thereof in detail. 

        (c)    Notice of Termination.    Any termination of the Employee's employment by the Company or by the Employee shall
be communicated by written Notice of Termination to the other party hereto in accordance with Section 15. "Notice of Termination" shall mean a notice that indicates the specific termination
provision in this Agreement relied upon and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination of the Employee's employment under the provision
so indicated. 

        (d)    Date of Termination.    "Date of Termination" shall mean: (1) if the Employee's employment is terminated
by his death, the date of his death; (2) if the Employee's employment is terminated for
Disability, 30 days after Notice of Termination is given; and (3) if the Employee's employment is terminated for any other reason, the date specified in the Notice of Termination. 

        (e)    Dispute Concerning Termination.    If within the later of (i) fifteen (15) days after Notice of
Termination is given, or (ii) fifteen (15) days prior to the Date of Termination (as determined without regard to this Section 11(e), the party receiving such Notice of
Termination notifies the other party that a dispute exists concerning a termination by the Employee for Good Reason (as defined in Section 11(h)) following a Change in Control (as defined in
Section 11(g)), the Date of Termination shall be the earlier of the expiration date of the Agreement, or the date on which the dispute is finally resolved, either by mutual written agreement of
the parties or by a final judgment, order or decree of a court of competent jurisdiction (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has
been perfected); 

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provided, however, that the Date of Termination shall be extended by a notice of dispute only if such notice is given in good faith and the party giving such notice pursues the resolution of such
dispute with reasonable diligence. 

        (f)    Compensation During Dispute.    If a purported termination by the Employee for Good Reason occurs following a
Change in Control and during the Term of this Agreement, and such termination is disputed in accordance with Section 11(e) hereof, the Company shall continue to pay the Employee the full
compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, salary) and continue the Employee as a participant in all compensation, benefit and
insurance plans in which the Employee was participating when the notice giving rise to the dispute was given, until the dispute is finally resolved in accordance with Section 11(e) hereof or,
if earlier, the expiration date of the Agreement. Amounts paid under this Section 11(f) are in addition to all other amounts due under this Agreement (other than those due under
Section 12(b) hereof) and shall not be offset against or reduce any other amounts payable under this Agreement. 

        (g)    Change in Control.    A "Change in Control" shall be deemed to have occurred if the conditions set forth in any
one of the following paragraphs shall have been satisfied: 

        (i)    any
"person" (as such term is used in Sections 14(d) and 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) (other than the Company; any
trustee or other fiduciary holding securities under an employee benefit plan of the Company; or any Company owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of the stock of the Company) is or becomes after the Effective Date the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its affiliates) representing 25% or
more of the combined voting power of the Company's then outstanding securities; or 

        (ii)  during
any period of two consecutive years (not including any period prior to the Effective Date), individuals who at the beginning of such period constitute the Board
and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in subparagraph (i), (iii) or
(iv) of this Section 11(g)) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least 2/3 of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 

        (iii)  the
stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than (A) a merger or consolidation which
would result in voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company, at least 75% of the combined voting power of
the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person acquires more than 50% of the combined voting power of the Company's then outstanding securities; or 

        (iv)  the
stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially
all the Company's assets. 

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        (h)    Good Reason.    At any time following a Change in Control, the Employee may terminate his employment hereunder
for "Good Reason." "Good Reason" shall mean the occurrence (without the Employee's express written consent) of any material breach of this Agreement, including, without limitation, any of the
following acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act described in subsections (i), (iv), (v), (vi) or (vii) below, such act or
failure to act is corrected prior to the Date of Termination specified in the Notice of Termination given in respect thereof: 

        (i)    the
assignment to the Employee of any duties inconsistent with the Employee's status as a senior executive of the Company or a substantially adverse alteration in the
nature or status of the Employee's responsibilities from those in effect immediately prior to the Change in Control; 

        (ii)  a
reduction by the Company in the Employee's annual base salary as in effect on the date hereof or as the same may be increased from time to time; 

        (iii)  the
relocation of the Company's principal offices to a location outside Southern California (or, if different, the metropolitan area in which such offices are located
immediately prior to the Change in Control) or the Company's requiring the Employee to be based anywhere other than the Company's principal executive offices, except for required travel on the
Company's business to an extent substantially consistent with the Employee's present business travel obligations; 

        (iv)  the
failure by the Company to pay to the Employee any portion of the Employee's current compensation, or to pay the Employee any portion of an installment of deferred
compensation under any deferred compensation program of the Company, within seven days of the date such compensation is due; 

        (v)  the
failure by the Company to continue in effect any compensation plan in which the Employee participates immediately prior to the Change in Control which is material to
the Employee's total compensation, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to
continue the Employee's participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of
the Employee's participation relative to other participants, as existed immediately prior to the Change in Control; 

        (vi)  the
failure by the Company to continue to provide the Employee with benefits substantially similar to those enjoyed by the Employee under any of the Company's pension,
life insurance, medical, health and accident, or disability plans in which the Employee was participating immediately prior to the Change in Control; or the taking of any actions by the Company which
would directly or indirectly materially reduce any of such benefits or deprive the Employee of any material fringe benefit enjoyed by the Employee immediately prior to the Change in Control; 

        (vii)   any
purported termination of the Employee's employment which is not effected pursuant to a Notice of Termination satisfying the requirements of this
Agreement; for purposes of this Agreement, no such purported termination shall be effective; or 

        (viii)  any
failure by the Company to comply with and satisfy Section 13(b) of this Agreement. 

        The
Employee's right to terminate the Employee's employment for Good Reason shall not be affected by the Employee's incapacity due to physical or mental illness. The 

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Employee's continued employment shall not constitute consent to, or a wavier of rights with respect to, any act or failure to act constituting Good Reason hereunder. 

        (i)    Voluntary Termination.    The Employee may terminate his employment hereunder ("Voluntary Termination") upon a
material breach of this Agreement by the Company, unless the Company shall fully correct such breach within 30 days of the Employee's Notice of Termination given respect thereof. 

        12.    Compensation Upon Termination or During Disability.    The Employee shall be entitled to the following benefits
during a period of disability, or upon termination of his employment, as the case may be, provided that such period or termination occurs during the Term of this Agreement: 

        (a)  During
any period that the Employee fails to perform his full-time duties with the Company as a result of incapacity due to physical or mental illness, he
shall continue to receive his base salary at the rate in effect at the commencement of any such period, together with all compensation payable to him under the Company's disability plan or program or
other similar plan during such period, until his employment is terminated pursuant to Section 11 hereof. Thereafter, or in the event the Employee's employment shall be terminated by reason of
his death, his benefits shall be determined under the Company's retirement, insurance and other compensation programs then in effect in accordance with the terms of such programs. 

        (b)  If
at any time the Employee's employment shall be terminated: (i) by the Company for Cause or Disability or (ii) by him for any reason (other than a
Voluntary Termination or for Good Reason following the occurrence of a Change in Control), the Company shall pay him his full base salary through the Date of Termination at the rate in effect at the
time Notice of Termination is given, plus all other amounts to which he is entitled through the Date of Termination under any compensation plan of the Company at the time such payments are due, and
the Company shall have no further obligations to him under this Agreement. 

        (c)  If
the Employee's employment should be terminated: (1) by reason of his death, (2) by the Company other than for Cause or Disability or (3) by the
Employee in a Voluntary Termination, he shall be entitled to the benefits provided below: 

        (i)    the
Company shall pay to the Employee or the appropriate payee (as determined in accordance with Section 13(c)) (A) his full base salary through the Date
of Termination at the rate in effect at the time Notice of Termination is given; plus (B) (x) in the case of death or a Voluntary Termination all salary and bonus payments that would have been
payable to the Employee pursuant to this Agreement for the remaining Term of this Agreement, or (y) in all other cases, all salary and bonus payments that would have been payable to the
Employee had the Employee continued to be employed for a period of 12 months, assuming for the purpose of such payments that his salary for such remaining period is equal to his salary at the
Date of Termination and that his annual bonus for such remaining Term is equal to the average of the annual bonuses paid to him by the Company with respect to the three fiscal years ended immediately
prior to the fiscal year in which the Date of termination occurs; plus (C) all other amounts to which he is entitled under any compensation plan of the Company, in cash in a lump sum no later
than the 15th day following the Date of Termination; 

        (ii)  for
a 12-month period after the Date of Termination, the Company shall arrange to provide the Employee with life, disability, accident and health insurance
benefits substantially similar to those which the Employee and his covered family members are receiving immediately prior to the Notice of Termination (without giving effect to any reduction in such
benefits subsequent to a Change in Control); provided, however, that such continued benefits shall be reduced to the extent comparable benefits are actually received by or made available to the
Employee without cost during the 12-month period following the Employee's 

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termination of employment (and the Employee agrees that he shall promptly report any such benefits actually received to the Company); and 

        (iii)  the
Company shall continue in effect for the benefit of the Employee all insurance or other provisions for indemnification and defense of officers or directors of the
Company which are in effect on the date of the Notice of Termination is sent to the Employee with respect to all of his acts and omissions while an officer or director as fully and completely as if
such termination had not occurred, and until the final expiration or running of all periods of limitation against actions which may be applicable to such acts or omissions. 

        (d)  If
the Employee's employment should be terminated by the Employee for Good Reason following a Change in Control, he shall be entitled to the benefits provided below: 

        (i)    the
Company shall pay to the Employee or the appropriate payee (as determined in accordance with Section 13(c)) (A) his full base salary through the Date
of Termination at the rate in effect at the time Notice of Termination is given; plus (B) (x) in the case of death or a Voluntary Termination all salary and bonus payments that would have been
payable to the Employee pursuant to this Agreement for the remaining Term of this Agreement, or (y) in all other cases, all salary and bonus payments that would have been payable to the
Employee had the Employee continued to be employed for a period of 24 months, assuming for the purpose of such payments that his salary for such remaining period is equal to his salary at the
Date of Termination and that his annual bonus for such remaining Term is equal to the average of the annual bonuses paid to him by the Company with respect to the three fiscal years ended immediately
prior to the fiscal year in which the Date of termination occurs; plus (C) all other amounts to which he is entitled under any compensation plan of the Company, in cash in a lump sum no later
than the 15th day following the Date of Termination; 

        (ii)  for
a 24-month period after the Date of Termination, the Company shall arrange to provide the Employee with life, disability, accident and health insurance
benefits substantially similar to those which the Employee and his covered family members are receiving immediately prior to the Notice of Termination (without giving effect to any reduction in such
benefits subsequent to a Change in Control); provided, however, that such continued benefits shall be reduced to the extent comparable benefits are actually received by or made available to the
Employee without cost during the 24-month period following the Employee's termination of employment (and the Employee agrees that he shall promptly report any such benefits actually
received to the Company); and 

        (iii)  the
Company shall continue in effect for the benefit of the Employee all insurance or other provisions for indemnification and defense of officers or directors of the
Company which are in effect on the date the Notice of Termination is sent to the Employee with respect to all of his acts and omissions while an officer or director as fully and completely as if such
termination had not occurred, and until the final expiration or running of all periods of limitation against actions which may be applicable to such acts or omissions. 

        (e)  Notwithstanding
any other provisions of this Agreement, in the event that any payment or benefit received or to be received by the Employee in connection with the
termination of the Employee's employment (whether such benefit is pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, and all such payments and
benefits being hereinafter called "Total Payments") would not be deductible (in whole or part), by the Company as a result of the application of Section 280G of the Internal Revenue Code of
1986, as amended ("Code"), then, to the extent necessary to make the nondeductible portion of the Total Payments deductible, (i) the cash payments under this Agreement shall first be reduced
(if necessary, to zero), and (ii) all other non-cash payments under this Agreement shall next be reduced (if necessary, to zero). 

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        (f)    If
it is established as described in the preceding subsection (d) that the aggregate benefits paid to or for the Employee's benefit are in an amount that would
result in any portion of such "parachute payments" not being deductible by reason of Section 280G of the Code, then the Employee shall have an obligation to pay the Company upon demand an
amount equal to the sum of: (i) the excess of the aggregate "parachute payments" paid to or for the Employee's benefit over the aggregate "parachute payments" that could have been paid to or
for Employee's benefit without any portion of such "parachute payments" not being deductible by reason of Section 280G of the Code; and (ii) interest on the amount set forth in
clause (i) of this sentence at the rate provided in Section 1274(b)(2)(B) of the Code from the date of the Employee's receipt of such excess until the date of such payment. 

        (g)  The
Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise. 

        (h)  If
the employment of the Employee is terminated by the Company without Cause or the Employee's employment is terminated by the Employee under conditions entitling him to
payment hereunder and the Company fails to make timely payment of the amounts then owed to the Employee under this Agreement, the Employee shall be entitled to interest on such amounts at the rate of
1% above the prime rate (defined as the base rate on corporate loans at large U.S. money center commercial banks as published by the Wall Street Journal), compounded monthly, for the period from the
date such amounts were otherwise due until payment is made to the Employee (which interest shall be in addition to all rights which the Employee is otherwise entitled to under this Agreement). 

        13.    Assignment.    

        (a)  This
Agreement is personal to each of the parties hereto. No party may assign or delegate any rights or obligations hereunder without first obtaining the written consent
of the other party hereto, except that this Agreement shall be binding upon and inure to the benefit of any successor corporation to the Company. 

        (b)  The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken
place. As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes this Agreement by operation of
law, or otherwise. 

        (c)  This
Agreement shall inure to the benefit of and be enforceable by the Employee and his personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Employee should die while any amount would still be payable to him hereunder had he continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to his devisee, legatee or other designee or, if there is no such designee, to his estate. 

        14.    (a) Confidential Information.    During the Term of this Agreement and thereafter, the Employee shall not,
except as may be required to perform his duties hereunder or as required by applicable law, disclose to others for use, whether directly or indirectly, any Confidential Information regarding the
Company. "Confidential Information" shall mean information about the Company, its subsidiaries and affiliates, and their respective clients and customers that is not available to the general public
and that was learned by the Employee in the course of his employment by the Company, including (without limitation) any data, formulae, information, proprietary knowledge, trade secrets and client and
customer lists and all papers, resumes, records and the documents containing such 

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Confidential Information. The Employee acknowledges that such Confidential Information is specialized, unique in nature and of great value to the Company, and that such information gives the Company
a competitive advantage. Upon the termination of his employment, the Employee will promptly deliver to the Company all documents (and all copies thereof) containing any Confidential Information. 

        (b)    Noncompetition.    The Employee agrees that during the Term of this Agreement, and for a period of one year
thereafter, he will not, directly or indirectly, without the prior written consent of the Company, provide consultative service with or without pay, own, manage, operate, join, control, participate
in, or be connected as a stockholder, partner, or otherwise with any business, individual, partner, firm, corporation, or other entity which is then in competition with the Company or any present
affiliate of the Company; provided, however, that the "beneficial ownership" by the Employee,
either individually or as a member of a "group," as such terms are used in Rule 13d of the General Rules and Regulations under the Exchange Act, of not more than 1% of the voting stock of any
publicly held corporation shall not be a violation of this Agreement. It is further expressly agreed that the Company will or would suffer irreparable injury if the Employee were to compete with the
Company or any subsidiary or affiliate of the Company in violation of this Agreement and that the Company would by reason of such competition be entitled to injunctive relief in a court of appropriate
jurisdiction, and the Employee further consents and stipulates to the entry of such injunctive relief in such a court prohibiting the Employee from competing with the Company or any subsidiary or
affiliate of the Company in violation of this Agreement. 

        (c)    Right to Company Materials.    The Employee agrees that all styles, designs, recipes, lists, materials, books,
files, reports, correspondence, records, and other documents ("Company Material") used, prepared, or made available to the Employee, shall be and shall remain the property of the Company. Upon the
termination of his employment or the expiration of this Agreement, all Company Materials shall be returned immediately to the Company, and Employee shall not make or retain any copies thereof. 

        (d)    Antisolicitation.    The Employee promises and agrees that during the Term of this Agreement, and for a period
of one year thereafter, he will not influence or attempt to influence customers, franchisees, landlords, or suppliers of the Company or any of its present or future subsidiaries or affiliates, either
directly or indirectly, to divert their business to any individual, partnership, firm, corporation or other entity then in competition with the business of the Company, or any subsidiary or affiliate
of the Company. 

        15.    Notice.    For the purpose of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed
to the respective addresses set forth below, or to such other addresses as either party may have furnished to the other in writing in accordance herewith, except that notice of a change of address
shall be effective only upon actual receipt: 

	Company:	 	IHOP Corp.

450 North Brand Blvd.

Glendale, California 91203-1903

to the attention of the Board;
	

with a copy to: the Secretary of the Company
	

Employee:	
 	

Gregg Nettleton

450 North Brand Boulevard

Glendale California 91203.

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        16.    Amendments or Additions.    No amendments or additions to this Agreement shall be
binding unless in writing and signed by both parties hereto. 

        17.    Section Headings.    The section headings used in this Agreement are included solely for convenience and shall
not affect, or be used in connection with, the interpretation of this Agreement. 

        18.    Severability.    The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 

        19.    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed to be an
original, but both of which together will constitute one and the same instrument. 

        20.    Arbitration.    Any dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration, conducted before a panel of three arbitrators in Los Angeles, California, in accordance with the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrator's award in any court having jurisdiction; provided, however, that the Employee shall be entitled to seek specific performance of his right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. 

        21.    Attorney's Fees.    The Company shall pay to the Employee all out-of-pocket expenses,
including attorneys' fees, incurred by the Employee in connection with any claim, legal action or proceeding
involving this Agreement in which the Employee prevails in whole or in part, whether brought by the Employee or by or on behalf of the Company or by another party. The Company shall pay prejudgment
interest on any money judgment obtained by the Employee calculated at 3% above the prime rate (defined as the base rate on corporate loans at large U.S. money center commercial banks as published by
the Wall Street Journal), from the date that payment(s) to the Employee should have been made under this Agreement. 

        22.    Miscellaneous.    No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Employee and such officer as may be specifically designated by the Board. No waiver by-either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been
made by either party which are not expressly set forth in this Agreement and this agreement shall supersede any prior understanding or agreement either written or oral, will respect to the subject
matter hereto. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California without regard to its conflicts of law principles.
All references to sections of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. 

        Any
payments provided hereunder shall be paid net of any applicable withholding required under federal, state or local law. The obligations of the Company under Section 12 and
Section 20 and the obligations of the Employee under Section 14 and Section 20 shall survive the expiration of the Term of this Agreement. 

10

 

        IN
WITNESS WHEREOF, each of the parties hereto has executed this Agreement on the date first indicated above. 

	Attest:	 	IHOP Corp.
	

/s/  MARK D. WEISBERGER      
 Mark D. Weisberger

Secretary	
 	

By:	
 	

/s/  JULIA A. STEWART      
 Julia A. Stewart

President
	

 	
 	
EMPLOYEE:
	

 	
 	

/s/  GREGG NETTLETON      
 Gregg Nettleton

11

QuickLinks

Exhibit 10.1

EMPLOYMENT AGREEMENTEXHIBIT
10.2

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (the “Agreement”) is entered
into on April 29, 1996, and shall become effective on July 8, 1996 (the
“Effective Date”), between IHOP CORP., a Delaware corporation (the “Company”),
and ANNA G. ULVAN (the “Employee”).

 

WHEREAS, Company and Employee are parties to an
Employment Agreement dated July 8, 1991, which terminates on July 7, 1996;

 

WHEREAS, the parties desire to enter into a new
Employment Agreement setting forth the terms and conditions for the continuing
employment relationship of the Employee with the Company; and

 

WHEREAS, the Board of Directors of the Company (the
“Board”) has approved and authorized the Company to enter into this Agreement
with the Employee.

 

NOW, THEREFORE, in consideration of the promises and
mutual covenants and agreements herein contained and intending to be legally
bound hereby, the Company and the Employee hereby agree as follows:

 

1. Employment. The Employee is employed as Vice
President, Franchise of the Company from the Effective Date through the Term of
this Agreement (as defined in Section 2 hereof). In this capacity, the Employee
shall have such duties and responsibilities as may be designated to him by the
Board from time to time and as are not inconsistent with the Employee’s
position with the Company, including the performance of duties with respect to
any subsidiaries of the Company, as may be designated by the Board. During the
Employee’s period of employment hereunder, the Employee shall be based in the
principal offices of the Company in Southern California, and shall not be
required to relocate outside of Southern California to perform services
hereunder, except for travel as reasonably required in the performance of his
duties hereunder.

 

2. Term. The “initial term” of this Agreement shall be
for the period commencing on the Effective Date and ending on the first
anniversary of the Effective Date; provided, however, that on the first
anniversary of the Effective Date, and on each subsequent anniversary date
thereafter, the term of this Agreement shall automatically be extended for one
additional year unless, not later than 90 days prior to such applicable
anniversary date, the Company or the Employee shall give notice not to extend
this Agreement; and provided further, however, that, if a Change in Control (as
defined in Section 10(g)) occurs prior to the expiration of the Term of this 

 

 

Agreement, this Agreement shall remain in full force
and effect and shall not expire prior to the last day of the 24th month
following the date of such Change in Control. The “Term of this Agreement” or
“Term” shall mean, for purposes of this Agreement, both the “initial term” (as
hereinbefore described) and any additional term (created by extension, as
described above), and the Term of this Agreement shall not be affected by the
Employee’s termination of employment.

 

3. Salary. Subject to the further provisions of this
Agreement, the Company shall pay the Employee during the Term of this Agreement
a salary at an annual rate equal to $178,000.00, with such salary to be
increased at such times, if any, and in such amounts as determined by the
Board, which increases shall be consistent with the historical business
practices of the Company and the salary adjustments for other senior executives
of the Company. Such salary shall be payable by the Company to the Employee not
less frequently than monthly and shall not be decreased at any time during the
Term of this Agreement. Participation in deferred compensation, discretionary
bonus, retirement, and other employee benefit plans and in fringe benefits
shall not reduce the salary payable to the Employee under this Section 3.

 

4. Participation in Bonus, Retirement and Employee
Benefit Plans. The Employee shall be entitled to participate equitably with
other senior executives in any plan of the Company relating to bonuses, stock
options, stock purchases, pension, thrift, profit sharing, life insurance,
medical coverage, education, or other retirement or employee benefits that the Company
has adopted or may adopt for the benefit of its senior executives.

 

5. Fringe Benefits; Automobile. The Employee
shall be entitled to receive all other fringe benefits which are now or may be
provided to the Company’s senior executives. In addition, the Company shall
provide the Employee during the Term of this Agreement with his choice of a car
or a car allowance in accordance with the Company’s general policy on providing
cars to senior executives. Notwithstanding the foregoing, the benefits provided
under this Section 5 shall cease upon the Employee’s Date of Termination (as
defined in Section 10(d)).

 

6. Vacations. The Employee shall be entitled to an
annual paid vacation as determined in accordance with the Company’s general
policy for senior executives.

 

7. Business Expenses. During such time as the Employee
is rendering services hereunder, the Employee shall be entitled to incur and be
reimbursed for all reasonable business expenses and be provided allowances as
are furnished to the Company’s most senior executives under the Company’s then
current policies. The Company agrees that it will reimburse the Employee for
all such expenses upon the presentation by the Employee, from time to time, of
an itemized account of such expenditures, setting forth the date, the purposes
for which incurred, and the amounts

 

2

 

thereof, together with such receipts showing payments
in conformity with the Company’s established policies. Reimbursement shall be
made within a reasonable period after the Employee’s submission of an itemized
account.

 

8. Insurance and Indemnity. The Employee shall be
added as an additional named insured under all appropriate insurance policies
now in force or hereafter obtained covering any officers or directors of the
Company. The Company shall indemnify and hold the Employee harmless from any
cost, expense or liability arising out of or relating to any acts or decisions
made by the Employee on behalf of or in the course of performing services for
the Company to the same extent the Company indemnifies and holds harmless other
senior executive officers and directors of the Company and in accordance with
the Company’s established policies.

 

9. Legal and Accounting Advice. The Employee shall be
entitled to reimbursement by the Company for expenses incurred by him for
personal legal, accounting, investment or estate planning services in an amount
to be determined by the Board, but in no event greater than $5,000 annually (or
a pro rata portion of such amount for any period of employment less than a full
year); provided, however, that no reimbursement shall be made for any such
expenses incurred by the Employee after such Employee’s Date of Termination.

 

10. Termination.

 

(a) Disability. If, as a result of the Employee’s
incapacity due to physical or mental illness, he shall have been absent from
the full-time performance of his duties with the Company for 90 consecutive
days or 180 days within any 12-month period, his employment may be terminated
by the Company for ”Disability.”

 

(b) Cause. Subject to the notice provisions set forth
below, the Company may terminate the Employee’s employment for “Cause” at any
time. “Cause” shall mean termination upon: (1) the willful failure by the
Employee to substantially perform his duties with the Company (other than any
such failure resulting from his incapacity due to physical or mental illness),
after a written demand for substantial performance is delivered to him by the
Board, which demand specifically identifies the manner in which the Board
believes that he has not substantially performed his duties; (2) the Employee’s
willful misconduct that is demonstrably and materially injurious to the
Company, monetarily or otherwise; or (3) the Employee’s commission of such acts
of dishonesty, fraud, misrepresentation or other acts of moral turpitude as
would prevent the effective performance of his duties. For purposes of this
subsection (b), no act, or failure to act, on the Employee’s part shall be
deemed ”willful” unless done, or omitted to be done, by him not in good faith
and without the reasonable belief that his action or omission was in the best
interest of the Company. Notwithstanding the foregoing, the Employee shall not
be deemed to have been

 

3

 

terminated for Cause unless and until there shall have
been delivered to him a copy of a resolution duly adopted by the affirmative
vote of a majority of the non-employee members of the Board at a meeting of
such members (after reasonable notice to him and an opportunity for him,
together with his counsel, to be heard before such members of the Board),
finding that he has engaged in the conduct set forth above in this subsection
(b) and specifying the particulars thereof in detail.

 

(c) Notice of Termination. Any termination of the
Employee’s employment by the Company or by the Employee shall be communicated
by written Notice of Termination to the other party hereto in accordance with
Section 14. ”Notice of Termination” shall mean a notice that indicates the
specific termination provision in this Agreement relied upon and sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
the termination of the Employee’s employment under the provision so indicated.

 

(d) Date of Termination. “Date of Termination” shall
mean: (1) if the Employee’s employment is terminated by his death, the date of
his death; (2) if the Employee’s employment is terminated for Disability, 30
days after Notice of Termination is given; and (3) if the Employee’s employment
is terminated for any other reason, the date specified in the Notice of
Termination.

 

(e) Dispute Concerning Termination. If within the
later of (i) 15 days after Notice of Termination is given, or (ii) 15 days
prior to the Date of Termination (as determined without regard to this Section
10(e), the party receiving such Notice of Termination notifies the other party
that a dispute exists concerning a termination by the Employee for Good Reason
(as defined in Section 10(h)) following a Change in Control (as defined in
Section 10(g)), the Date of Termination shall be the earlier of the expiration
date of the Agreement, or the date on which the dispute is finally resolved,
either by mutual written agreement of the parties or by a final judgment, order
or decree of a court of competent jurisdiction (which is not appealable or with
respect to which the time for appeal therefrom has expired and no appeal has
been perfected); provided, however, that the Date of Termination shall be
extended by a notice of dispute only if such notice is given in good faith and
the party giving such notice pursues the resolution of such dispute with
reasonable diligence.

 

(f) Compensation During Dispute. If a purported
termination by the Employee for Good Reason occurs following a Change in
Control and during the Term of this Agreement, and such termination is disputed
in accordance with Section 10(e) hereof, the Company shall continue to pay the
Employee the full compensation in effect when the notice giving rise to the
dispute was given (including, but not limited to, salary) and continue the
Employee as a participant in all compensation, benefit and insurance plans in
which the Employee was participating when the notice giving rise to the dispute
was given, until the dispute is finally resolved in accordance with

 

4

 

Section 10(e) hereof or, if earlier, the expiration
date of the Agreement. Amounts paid under this Section 10(f) are in addition to
all other amounts due under this Agreement (other than those due under Section
11(b) hereof) and shall not be offset against or reduce any other amounts
payable under this Agreement.

 

(g) Change in Control. A ”Change in Control” shall be
deemed to have occurred if the conditions set forth in any one of the following
paragraphs shall have been satisfied:

 

(i) any ”person” (as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
”Exchange Act”)) (other than the Company; any trustee or other fiduciary
holding securities under an employee benefit plan of the Company; or any
company owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of the stock of the
Company) is or becomes after the Effective Date the ”beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company (not including in the securities beneficially owned
by such person any securities acquired directly from the Company or its
affiliates) representing 25% or more of the combined voting power of the
Company’s then outstanding securities; or

 

(ii) during any period of two consecutive years (not
including any period prior to the Effective Date), individuals who at the
beginning of such period constitute the Board and any new director (other than
a director designated by a person who has entered into an agreement with the
Company to effect a transaction described in subsection (i), (iii) or (iv) of
this Section 10(g)) whose election by the Board or nomination for election by
the Company’s stockholders was approved by a vote of at least 2/3 of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority thereof; or

 

(iii) the stockholders of the Company approve a merger
or consolidation of the Company with any other corporation, other than (A) a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity), in combination with the ownership of any trustee or other
fiduciary holding securities under an employee benefit plan of the Company, at
least 75% of the combined voting power of the voting securities of the Company
or such surviving entity outstanding immediately after such merger or
consolidation, or (B) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person
acquires more than 50% of the combined voting power of the Company’s then
outstanding securities; or

 

5

 

(iv) the stockholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all the Company’s assets.

 

(h) Good Reason. At any time following a Change in
Control, the Employee may terminate his employment hereunder for “Good Reason.”
“Good Reason” shall mean the occurrence (without the Employee’s express written
consent) of any material breach of this Agreement, including, without
limitation, any one of the following acts by the Company, or failures by the
Company to act, unless, in the case of any act or failure to act described in
subsections (i), (iv), (v), (vi) or (vii) below, such act or failure to act is
corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

 

(i) the assignment to the Employee of any duties
inconsistent with the Employee’s status as a senior executive of the Company or
a substantially adverse alteration in the nature or status of the Employee’s
responsibilities from those in effect immediately prior to the Change in
Control;

 

(ii) a reduction by the Company in the Employee’s
annual base salary as in effect on the date hereof or as the same may be
increased from time to time;

 

(iii) the relocation of the Company’s principal
offices to a location outside Southern California (or, if different, the
metropolitan area in which such offices are located immediately prior to the
Change in Control) or the Company’s requiring the Employee to be based anywhere
other than the Company’s principal executive offices, except for required
travel on the Company’s business to an extent substantially consistent with the
Employee’s present business travel obligations;

 

(iv) the failure by the Company to pay to the Employee
any portion of the Employee’s current compensation, or to pay to the Employee
any portion of an installment of deferred compensation under any deferred compensation
program of the Company, within seven days of the date such compensation is due;

 

(v) the failure by the Company to continue in effect
any compensation plan in which the Employee participates immediately prior to
the Change in Control which is material to the Employee’s total compensation,
unless an equitable arrangement (embodied in an ongoing substitute or
alternative plan) has been made with respect to such plan, or the failure by
the Company to continue the Employee’s participation therein (or in such
substitute or alternative plan) on a basis not materially less favorable, both
in terms of the amount of benefits provided and the

 

6

 

level of the Employee’s participation relative to
other participants, as existed immediately prior to the Change in Control;

 

(vi) the failure by the Company to continue to provide
the Employee with benefits substantially similar to those enjoyed by the
Employee under any of the Company’s pension, life insurance, medical, health
and accident, or disability plans in which the Employee was participating
immediately prior to the Change in Control; the taking of any action by the
Company which would directly or indirectly materially reduce any of such
benefits or deprive the Employee of any material fringe benefit enjoyed by the
Employee immediately prior to the Change in Control; or the failure by the
Company to provide the Employee with the number of paid vacation days to which
the Employee is entitled on the basis of years of service with the Company in
accordance with the Company’s general vacation policy in effect immediately
prior to the Change in Control;

 

(vii) any purported termination of the Employee’s
employment which is not effected pursuant to a Notice of Termination satisfying
the requirements of this Agreement; for purposes of this Agreement, no such
purported termination shall be effective; or

 

(viii) any failure by the Company to comply with and
satisfy Section 12(b) of this Agreement. The Employee’s right to terminate the
Employee’s employment for Good Reason shall not be affected by the Employee’s
incapacity due to physical or mental illness. The Employee’s continued
employment shall not constitute consent to, or a waiver of rights with respect
to, any act or failure to act constituting Good Reason hereunder.

 

(i) Voluntary Termination. The Employee may terminate
his employment hereunder (“Voluntary Termination”) upon a material breach of
this Agreement by the Company, unless the Company shall fully correct such
breach within 30 days of the Employee’s Notice of Termination given in respect
thereof.

 

11. Compensation Upon Termination or During
Disability. The Employee shall be entitled to the following benefits during a
period of disability, or upon termination of his employment, as the case may
be, provided that such period or termination occurs during the Term of this
Agreement:

 

(a) During any period that the Employee fails to
perform his full-time duties with the Company as a result of incapacity due to
physical or mental illness, he shall continue to receive his base salary at the
rate in effect at the commencement of any such period, together with all
compensation payable to him under the Company’s disability plan or program or
other similar plan during such period, until his

 

7

 

employment is terminated pursuant to Section 10(a)
hereof. Thereafter, or in the event the Employee’s employment shall be
terminated by reason of his death, his benefits shall be determined under the
Company’s retirement, insurance and other compensation programs then in effect
in accordance with the terms of such programs.

 

(b) If at any time the Employee’s employment shall be
terminated: (i) by the Company for Cause or Disability or (ii) by him for any
reason (other than in a Voluntary Termination or for Good Reason following the
occurrence of a Change in Control), the Company shall pay him his full base
salary through the Date of Termination at the rate in effect at the time Notice
of Termination is given, plus all other amounts to which he is entitled through
the Date of Termination under any compensation plan of the Company at the time
such payments are due, and the Company shall have no further obligations to him
under this Agreement.

 

(c) If the Employee’s employment should be terminated:
(1) by reason of his death, (2) by the Company other than for Cause or
Disability or (3) by the Employee in a Voluntary Termination, he shall be
entitled to the benefits provided below:

 

(i) the Company shall pay to the Employee or the
appropriate payee (as determined in accordance with Section 12(c)) (A) his full
base salary through the Date of Termination at the rate in effect at the time
Notice of Termination is given; plus (B)(x) in the case of death or a Voluntary
Termination all salary and bonus payments that would have been payable to the
Employee pursuant to this Agreement for the remaining Term of this Agreement,
or (y) in all other cases, all salary and bonus payments that would have been payable
to the Employee had the Employee continued to be employed for a period of 12
months, assuming for the purpose of such payments that his salary for such
remaining period is equal to his salary at the Date of Termination and that his
annual bonus for such remaining Term is equal to the average of the annual
bonuses paid to him by the Company with respect to the three fiscal years ended
immediately prior to the fiscal year in which the Date of termination occurs;
plus (C) all other amounts to which he is entitled under any compensation plan
of the Company, in cash in a lump sum no later than the 15th day following the
Date of Termination;

 

(ii) for a 12-month period after the Date of
Termination, the Company shall arrange to provide the Employee with life,
disability, accident and health insurance benefits substantially similar to
those which the Employee and his covered family members are receiving
immediately prior to the Notice of Termination (without giving effect to any
reduction in such benefits subsequent to a Change in Control); provided,
however, that such continued benefits shall be reduced to the extent comparable
benefits are actually received by or made available to the Employee without
cost during the 12-month period following the Employee’s termination of

 

8

 

employment (and the Employee agrees that he shall
promptly report any such benefits actually received to the Company); and

 

(iii) the Company shall continue in effect for the
benefit of the Employee all insurance or other provisions for indemnification
and defense of officers or directors of the Company which are in effect on the
date the Notice of Termination is sent to the Employee with respect to all of
his acts and omissions while an officer or director as fully and completely as
if such termination had not occurred, and until the final expiration or running
of all periods of limitation against actions which may be applicable to such
acts or omissions.

 

(d) If the Employee’s employment should be terminated
by the Employee for Good Reason following a Change in Control, he shall be
entitled to the benefits provided below:

 

(i) the Company shall pay to the Employee or the
appropriate payee (as determined in accordance with Section 12(c)) (A) his full
base salary through the Date of Termination at the rate in effect at the time
Notice of Termination is given; plus (B) all salary and bonus payments that
would have been payable to the Employee had the Employee continued to be
employed for a period of 24 months, assuming for the purpose of such payments
that his salary for such remaining period is equal to his salary at the Date of
Termination and that his annual bonus for such remaining Term is equal to the
average of the annual bonuses paid to him by the Company with respect to the
three fiscal years ended immediately prior to the fiscal year in which the Date
of termination occurs; plus (C) all other amounts to which he is entitled under
any compensation plan of the Company, in cash in a lump sum no later than the
15th day following the Date of Termination;

 

(ii) for a 24-month period after the Date of
Termination, the Company shall arrange to provide the Employee with life,
disability, accident and health insurance benefits substantially similar to
those which the Employee and his covered family members are receiving
immediately prior to the Notice of Termination (without giving effect to any
reduction in such benefits subsequent to a Change in Control); provided,
however, that such continued benefits shall be reduced to the extent comparable
benefits are actually received by or made available to the Employee without
cost during the 24-month period following the Employee’s termination of
employment (and the Employee agrees that he shall promptly report any such
benefits actually received to the Company); and

 

(iii) the Company shall continue in effect for the
benefit of the Employee all insurance or other provisions for indemnification
and defense of officers or directors of the Company which are in effect on the
date the Notice of Termination is sent to the Employee with respect to all of
his acts and omissions while an officer or

 

9

 

director as fully and completely as if such
termination had not occurred, and until the final expiration or running of all
periods of limitation against actions which may be applicable to such acts or
omissions.

 

(e) Notwithstanding any other provisions of this
Agreement, in the event that any payment or benefit received or to be received
by the Employee in connection with the termination of the Employee’s employment
(whether such benefit is pursuant to the terms of this Agreement or any other
plan, arrangement or agreement with the Company, and all such payments and benefits
being hereinafter called “Total Payments”) would not be deductible (in whole or
part), by the Company as a result of the application of Section 280G of the
Internal Revenue Code of 1986, as amended (“Code”), then, to the extent
necessary to make the nondeductible portion of the Total Payments deductible,
(i) the cash payments under this Agreement shall first be reduced (if
necessary, to zero), and (ii) all other non-cash payments under this Agreement
shall next be reduced (if necessary, to zero).

 

(f) If it is established as described in the preceding
subsection (e) that the aggregate benefits paid to or for the Employee’s
benefit are in an amount that would result in any portion of such ”parachute
payments” not being deductible by reason of Section 280G of the Code, then the
Employee shall have an obligation to pay the Company upon demand an amount
equal to the sum of: (i) the excess of the aggregate “parachute payments” paid
to or for the Employee’s benefit over the aggregate “parachute payments” that could
have been paid to or for the Employee’s benefit without any portion of such
”parachute payments” not being deductible by reason of Section 280G of the
Code; and (ii) interest on the amount set forth in clause (i) of this sentence
at the rate provided in Section 1274(b)(2)(B) of the Code from the date of the
Employee’s receipt of such excess until the date of such payment.

 

(g) The Employee shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other employment
or otherwise.

 

(h) If the employment of the Employee is terminated by
the Company without Cause or the Employee’s employment is terminated by the
Employee under conditions entitling him to payment hereunder and the Company
fails to make timely payment of the amounts then owed to the Employee under
this Agreement, the Employee shall be entitled to interest on such amounts at
the rate of 3% above the prime rate (defined as the base rate on corporate
loans at large U.S. money center commercial banks as published by the Wall
Street Journal), compounded monthly, for the period from the date such amounts
were otherwise due until payment is made to the Employee (which interest shall
be in addition to all rights which the Employee is otherwise entitled to under
this Agreement).

 

10

 

12. Assignment.

 

(a) This Agreement is personal to each of the parties
hereto. No party may assign or delegate any rights or obligations hereunder
without first obtaining the written consent of the other party hereto, except
that this Agreement shall be binding upon and inure to the benefit of any
successor corporation to the Company.

 

(b) The Company shall require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, “Company” shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes this Agreement by operation of law, or otherwise.

 

(c) This Agreement shall inure to the benefit of and
be enforceable by the Employee and his personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If the Employee should die while any amount would still be payable to
him hereunder had he continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement
to his devisee, legatee or other designee or, if there is no such designee, to
his estate.

 

13. (a) Confidential Information. During the Term of
this Agreement and thereafter, the Employee shall not, except as may be
required to perform his duties hereunder or as required by applicable law,
disclose to others for use, whether directly or indirectly, any Confidential
Information regarding the Company. “Confidential Information” shall mean
information about the Company, its subsidiaries and affiliates, and their
respective clients and customers that is not available to the general public
and that was learned by the Employee in the course of his employment by the
Company, including (without limitation) any data, formulae, information,
proprietary knowledge, trade secrets and client and customer lists and all
papers, resumes, records and the documents containing such Confidential
Information. The Employee acknowledges that such Confidential Information is
specialized, unique in nature and of great value to the Company, and that such
information gives the Company a competitive advantage. Upon the termination of
his employment, the Employee will promptly deliver to the Company all documents
(and all copies thereof) containing any Confidential Information.

 

(b) Noncompetition. The Employee agrees that during
the Term of this Agreement, and for a period of one year thereafter, he will
not, directly or indirectly, without the prior written consent of the Company,
provide consultative service

 

11

 

with or without pay, own, manage, operate, join,
control, participate in, or be connected as a stockholder, partner, or
otherwise with any business, individual, partner, firm, corporation, or other
entity which is then in competition with the Company or any present affiliate
of the Company; provided, however, that the “beneficial ownership” by the
Employee, either individually or as a member of a “group,” as such terms are
used in Rule 13d of the General Rules and Regulations under the Exchange Act,
of not more than 1% of the voting stock of any publicly held corporation shall
not be a violation of this Agreement. It is further expressly agreed that the
Company will or would suffer irreparable injury if the Employee were to compete
with the Company or any subsidiary or affiliate of the Company in violation of
this Agreement and that the Company would by reason of such competition be
entitled to injunctive relief in a court of appropriate jurisdiction, and the
Employee further consents and stipulates to the entry of such injunctive relief
in such a court prohibiting the Employee from competing with the Company or any
subsidiary or affiliate of the Company in violation of this Agreement.

 

(c) Right to Company Materials. The Employee agrees
that all styles, designs, recipes, lists, materials, books, files, reports,
correspondence, records, and other documents (“Company Material”) used,
prepared, or made available to the Employee, shall be and shall remain the
property of the Company. Upon the termination of his employment or the
expiration of this Agreement, all Company Materials shall be returned
immediately to the Company, and Employee shall not make or retain any copies
thereof.

 

(d) Antisolicitation. The Employee promises and agrees
that during the Term of this Agreement, and for a period of one year
thereafter, he will not influence or attempt to influence customers,
franchisees, landlords, or suppliers of the Company or any of its present or
future subsidiaries or affiliates, either directly or indirectly, to divert
their business to any individual, partnership, firm, corporation or other
entity then in competition with the business of the Company, or any subsidiary
or affiliate of the Company.

 

14. Notice. For the purpose of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by United
States certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below, or to such other
addresses as either party may have furnished to the other in writing in
accordance herewith, except that notice of a change of address shall be
effective only upon actual receipt:

 

12

 

Company: IHOP Corp.

525 North Brand Blvd.

Glendale, California
91203-1903

to the attention of the
Board;

 

with a

copy to: the Secretary of the Company

 

Employee: Anna G. Ulvan

26201 Paolino Place Valencia, California 91355

 

15. Amendments or Additions. No amendments or
additions to this Agreement shall be binding unless in writing and signed by
both parties hereto.

 

16. Section Headings. The section headings used in
this Agreement are included solely for convenience and shall not affect, or be
used in connection with, the interpretation of this Agreement.

 

17. Severability. The provisions of this Agreement
shall be deemed severable and the invalidity or unenforceability of any
provision shall not affect the validity or enforceability of the other
provisions hereof.

 

18. Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but both of
which together will constitute one and the same instrument.

 

19. Arbitration. Any dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by
arbitration, conducted before a panel of three arbitrators in Los Angeles,
California, in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator’s award
in any court having jurisdiction; provided, however, that the Employee shall be
entitled to seek specific performance of his right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or
in connection with this Agreement.

 

20. Attorneys’ Fees. The Company shall pay to the
Employee all out-of- pocket expenses, including attorneys’ fees, incurred by
the Employee in connection with any claim, legal action or proceeding involving
this Agreement in which the Employee prevails in whole or in part, whether
brought by the Employee or by or on behalf of the Company or by another party.
The Company shall pay prejudgment interest on any money judgment obtained by
the Employee calculated at 3% above the

 

13

 

prime rate (defined as the base rate on corporate
loans at large U.S. money center commercial banks as published by the Wall
Street Journal), from the date that payment(s) to the Employee should have been
made under this Agreement.

 

21. Miscellaneous. No provision of this Agreement may
be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in writing and signed by the Employee and such officer as may be
specifically designated by the Board. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter
hereof have been made by either party which are not expressly set forth in this
Agreement and this agreement shall supersede any prior understanding or
agreement either written or oral, with respect to the subject matter hereto.
The validity, interpretation, construction and performance of this Agreement
shall be governed by the laws of the State of California without regard to its
conflicts of law principles. All references to sections of the Exchange Act or
the Code shall be deemed also to refer to any successor provisions to such
sections.

 

Any payments provided for hereunder shall be paid net
of any applicable withholding required under federal, state or local law. The
obligations of the Company under Section 12 and Section 21 and the obligations
of the Employee under Section 13 and Section 21 shall survive the expiration of
the Term of this Agreement.

 

IN WITNESS WHEREOF, each of the parties hereto has
executed this Agreement on the date first indicated above.

 

IHOP
CORP.

 

ATTEST:

 

	
  /s/
  Mark D. Weisberger

  	
   

  	
  By:

  	
   /s/ Richard K. Herzer 

  	
   

  
	
  Mark
  D. Weisberger

  	
   

  	
  Richard
  K. Herzer

  	
   

  
	
  Secretary

  	
   

  	
  President

  	
   

  

 

 

EMPLOYEE

 

	
   

  	
  /s/
  Anna G. Ulvan

  	
   

  	
   

  
	
   

  	
  Anna
  G. Ulvan

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

14

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