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Exhibit 10.6    
    

 
  AMENDED AND RESTATED EMPLOYMENT AGREEMENT    
    

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement")
is made and entered into effective as of November 1, 2005 (the "Effective Date") by and between  CardioNet, Inc., a California corporation
(the "Company"), and James M.
Sweeney, an individual ("Employee"). The Company and Employee are hereinafter collectively referred to as the  "Parties," and individually referred to as each or any "Party."

 
 

RECITALS    
    

        A.    The
Parties previously entered into that certain Amended and Restated Employment Agreement effective as of August 1, 2004 (the "Prior
Agreement"), which sets forth the terms and conditions of Employee's employment with the Company. 

        B.    The
Company desires assurance of the continued association and services of Employee in order to retain Employee's experience, skills, abilities, background and knowledge
in the management and operation of the Company, and is willing to continue to retain Employee's services on the terms and conditions set forth in this Agreement. 

        C.    Employee
desires to continue in the employ of the Company, and is willing to accept such continued employment on the terms and conditions set forth in this Agreement. 

        D.    This
Agreement is intended to supersede, amend and restate in its entirety the Prior Agreement. 

 
 

AGREEMENT    
    

        In consideration of the foregoing premises and the mutual promises made in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 

1.    Employment.    

        1.1    The Company hereby employs Employee, and Employee hereby accepts
employment by the Company, upon the terms and conditions set forth in this Agreement.    

        1.2    Employee shall be the Company's Chief Executive Officer.    

        1.3    Employee shall do and perform all services, acts or things necessary or
advisable to manage and conduct the business of the Company; provided, however, that at all times during his employment Employee shall be subject to the direction and policies from time to time
established by the Board of Directors of the Company (the "Board of Directors").    

        1.4    Unless the Parties otherwise agree in writing, during the employment term, Employee shall perform
the services he is required to perform pursuant to this Agreement at the Company's office located at 1010 Second Avenue, Suite 700, San Diego, California 92101, or 227 Washington Street #300,
Conshohocken, Pennsylvania 19428, which office shall be mutually agreed to by the Parties; provided, however, that the Company may from time to time require Employee to travel temporarily to either of
these or any other locations in connection with the Company's business.    

2.    Loyal and Conscientious Performance; Noncompetition.    

        During
his employment by the Company, Employee shall devote substantial energies, interest, abilities and productive time to the proper and efficient performance of this Agreement, and
shall not engage or in any manner participate in any activity which is directly competitive with or intentionally 

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injurious
to the Company, whether alone, as a partner, as a shareholder, officer or director of any other corporation, or as a trustee, fiduciary or in a similar representative capacity. Employee
shall not serve as an outside director of more than two (2) other corporations during the term of this Agreement. 

3.    Term of Employment.    

        Subject
to earlier termination pursuant to Section 7 hereof, Employee shall be employed by the Company pursuant to this Agreement for an initial term, commencing on the Effective
Date and ending on December 31, 2006, provided that the term of this Agreement shall continue from month to month after such time in the absence of 30 days written notice to the contrary
from either Party to the other Party (the "Termination Date"). 

4.    Compensation of Employee.    

        4.1    During the term of this Agreement (commencing as of the Effective Date),
the Company shall pay Employee an annual salary (the "Base Salary") of Four Hundred Sixty Thousand Dollars ($460,000), payable in
semi-monthly installments on each of the fifteenth (15th) and the last day of each calendar month. Such salary may be increased each year in the sole and absolute discretion of the Board
of Directors.    

        4.2    During the term of this Agreement, Employee shall also be eligible to receive an annual
performance bonus (the "Bonus") at the end of each fiscal year beginning with the fiscal year ending on December 31, 2006. The amount of such
Bonus, if any, shall be determined by the Board of Directors in its sole and absolute discretion. Any Bonus awarded to Employee shall be paid to Employee within ninety (90) days of the end of
the fiscal year of the Company in which such Bonus is earned.    

        4.3    If this Agreement is terminated prior to the expiration of its term
pursuant to Section 7 hereof, Employee shall receive the compensation, if any, described in such Section 7.    

5.    Other Benefits.    

        5.1    Employee shall be eligible to participate in and be covered by any
pension and profit sharing, life insurance, accident insurance, health insurance, dental insurance, hospitalization, disability, medical reimbursement or other plan(s) maintained from time to time by
the Company for its employees. Employee's dependents may be added to such coverage, if eligible, at Employee's own expense.    

        5.2    Employee shall earn four (4) weeks of vacation per calendar year
at full salary. It is understood that vacations need not be taken during the year earned. Employee agrees that such vacation shall be taken only at such times as the Company and Employee shall
mutually determine from time to time. Employee shall be entitled to additional time, also at full salary, to attend such meetings or courses as are necessary or advisable, as mutually determined by
Employee and the Company. Employee shall further be entitled to reasonable time off, also at full salary, for sickness or matters of personal emergency up to a maximum of two (2) weeks per
year.    

        5.3    The Company shall pay on Employee's behalf, or reimburse Employee for,
expenses reasonably incurred in connection with his employment. Employee agrees to submit receipts or other documentation to support the above expenses as a condition of reimbursement
therefor.    

        5.4    The Company shall, to the maximum extent permitted by law, indemnify and
hold Employee harmless against any costs and expenses, including reasonable attorneys' fees, judgments, fines, settlements and other amounts incurred in connection with any proceeding arising out of,
by reason of or relating to Employee's employment by the Company. The Company shall also advance to Employee any costs and expenses incurred in defending any such proceeding to the maximum extent
permitted by law.    

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6.    Relocation.    

        6.1    Benefits.    Employee shall be entitled to reimbursement by the
Company for the reasonable and customary out-of-pocket relocation expenses of the type described on Exhibit A hereto
incurred by Employee in connection with Employee's relocation from Pennsylvania to San Diego, California at such time as is mutually agreed to by Employee and the Board of Directors or under the
circumstances, and solely under the circumstances, set forth in Section 7 below (collectively, the "Relocation Benefits"). The Parties agree that
the amounts listed on Exhibit A opposite the Relocation Benefits represent the good faith estimate of the Company and Employee of the aggregate
amount of Relocation Benefits to be provided to Employee pursuant to this Section 6.1; provided, however, that such good faith estimate shall not either limit or set a floor for the aggregate
value of the reasonable and customary Relocation Benefits to be provided to Employee pursuant hereto.    

        6.2    Payment of Taxes.    In addition to the Relocation Benefits
described above and subject to the limitations set forth in Section 7 below, Employee shall be entitled to a one time reimbursement by the Company for additional federal and state taxes arising
from the Relocation Benefits provided by the Company to or for the benefit of Employee pursuant to Section 6.1 above. This one time reimbursement shall be calculated by multiplying the marginal
federal tax rate on the employee's federal tax return times the income to be recognized for federal purposes by the employee in the year such taxes are owed. The state reimbursement shall be
calculated as the marginal tax rate for the employee in Pennsylvania times the income to be recognized on the employee's Pennsylvania tax return, if any taxes are due and payable in Pennsylvania.
These amounts shall be summed together and shall be paid by the Company on or before these taxes become due and payable by the Employee. At either party's election, this matter can be referred to an
outside accounting firm who can make an independent verification of the amounts eligible to be paid pursuant to this paragraph based on the Employee's tax returns for the year, and the provisions of
this Agreement.    

        6.3    The Company and Employee may agree to furnish to outside Accountants such
information and documents the Accountants may reasonably request in order to make a determination under this Section 6.2. The Company shall bear all costs the Accountants may reasonably incur
in connection with any calculations contemplated by this Section 6.2.    

7.    Termination and Severance Compensation.    

        7.1    Definition of "Cause".    For purposes of this Agreement,
"Cause" for termination shall mean: (i) Employee's dishonesty, embezzlement or fraud against the Company; (ii) Employee's commission of any malicious mischief which results in injury to
the Company or property of the Company; (iii) Employee's refusal or failure to follow lawful and reasonable directions of the Board of Directors following written notice of such directions by
the Board of Directors to Employee and Employee's failure to follow such directions within a reasonable period of time following the date of such notice; (iv) Employee's failure to disclose
material information to, or his providing materially misleading information to, the Board of Directors; (v) Employee's conviction of any felony involving moral turpitude; or
(vi) Employee's gross negligence or gross misconduct in the performance of his duties under this Agreement.    

        7.2    Cause.    The Company shall have the right to terminate
Employee's employment hereunder for Cause upon written notice to Employee. If the Company terminates Employee's employment for Cause, the Employee's sole and exclusive right and remedy hereunder shall
be the right to receive his accrued base compensation and outstanding expense reimbursements through the date of such termination. Except as set forth in this Section 7.2, the Company shall
have no responsibility for the payment of any compensation or benefits to Employee (including, for purposes of clarification, the benefits described in Section 6 hereof) for any time period
subsequent to such termination except as may be expressly required by law or the respective terms of benefit arrangements to be paid even upon termination for cause or voluntary
termination.    

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        7.3    Voluntary Termination.    Employee shall have the right
voluntarily to terminate this Agreement at any time upon thirty (30) days prior written notice to the Company. 

        7.3.1    Voluntary Termination Prior to 180 Days Following IPO or Acquisition
Transaction.    If Employee voluntarily terminates his employment hereunder prior to the first to occur of one hundred eighty (180) days following the closing
of (i) the Company's first firm commitment underwritten public offering of its Common Stock registered under the Securities Act of 1933, as amended (the  "IPO") or (ii) a bona fide
acquisition transaction involving the Company and an unaffiliated third party entity effected pursuant to a merger,
consolidation, sale of assets or similar transaction (irrespective of whether the Company's shareholders immediately prior thereto hold outstanding voting securities representing more than 50% of the
combined outstanding voting power of the surviving entity following the closing of such merger, consolidation, sale of assets or similar transaction) (an "Acquisition
Transaction"), Employee's sole and exclusive rights and remedies hereunder shall be (x) the right to receive his accrued base compensation and outstanding expense
reimbursements through the date of such termination and (y) the right to receive the Relocation Benefits and Tax Reimbursement set forth in Section 6 hereof; provided, however, that
Employee's right to receive the benefits described in this Section 7.3.1 are subject to Employee having used his best efforts to manage the Company prior to his voluntary termination pursuant
to this Section 7.3.1. Except as set forth in this Section 7.3.1, the Company shall have no responsibility for the payment of any compensation or benefits to Employee for any time period
subsequent to such termination except as may be expressly required by law or the respective terms of benefit arrangements to be paid even upon termination for cause or voluntary termination. 

        7.3.2    Retirement or Voluntary Termination 180 Days or More Following IPO or Acquisition
Transaction.    If Employee retires or voluntarily terminates his employment hereunder following the first to occur of more than one hundred eighty (180) days
following the closing of (i) an IPO or (ii) an Acquisition Transaction, Employee's sole and exclusive rights and remedies hereunder shall be (x) the right to receive his accrued
base compensation and outstanding expense reimbursements through the date of such termination and for a period of twelve (12) months following the date of such termination and (y) the
right to receive the Relocation Benefits and Tax Reimbursement set forth in Section 6 hereof. Except as set forth in this Section 7.3.2, the Company shall have no responsibility for the
payment of any compensation or benefits to Employee for any time period subsequent to such termination except as may be expressly required by law or the respective terms of benefit arrangements to be
paid even upon termination for cause or voluntary termination.    

        7.4    Involuntary Termination Without Cause; Disability.    The
Company shall have the right to terminate Employee's employment hereunder without Cause upon written notice to Employee. Should Employee be terminated without Cause or in the event of Employee's
complete disability, as defined in Section 8 hereof, the Company shall pay to Employee (i) his accrued and unpaid base compensation to the date of termination and for a period of twelve
(12) months following the date of such termination and (ii) the Relocation Benefits and Tax Reimbursement set forth in Section 6 hereof. Except as set forth in this
Section 7.4, the Company shall have no responsibility for the payment of any other compensation or benefits to Employee for any time period subsequent to such termination except as may be
expressly required by law or the respective terms of benefit arrangements to be paid even upon termination for cause or voluntary termination.    

        7.5    Manner of Payment.    All amounts payable to Employee pursuant
to this Section 7 shall be subject to applicable withholding and payroll taxes and shall be payable in accordance with the Company's general payroll practices and not as a lump sum. 

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8.    Disability During Term of Employment.    

        The
term "completely disabled" as used in this Agreement shall mean the inability of Employee to perform his duties under this Agreement because he has become permanently disabled within
the meaning of any policy of disability income insurance covering employees of the Company then in force. In the event the Company has no policy of disability income insurance covering employees of
the Company in force when Employee becomes disabled, the term "completely disabled" shall mean the inability of Employee to substantially perform his duties under this Agreement by reason of any
incapacity, physical or mental, which the Board of Directors, based upon a medical opinion provided by a licensed physician acceptable to the Board of Directors, determines to have incapacitated
Employee from substantially performing his required services for the Company during the foreseeable future. Based upon such medical opinion, the action of the Board of Directors shall be final and
binding and the date such action is taken shall be the date of such complete disability for purposes of this Agreement. 

9.    Employee's Duties on Termination.    

        Upon
the termination of this Agreement, Employee shall promptly deliver to the Company all equipment, notebooks, documents, memoranda, reports, files, books, correspondence, lists and
other written or graphic records, and the like, relating to the Company's business, which are property of the Company and are in Employee's possession or under his control. 

10.    Assignment and Binding Effect.    

        This
Agreement shall be binding upon and inure to the benefit of Employee and Employee's heirs, executors, administrators and legal representatives. This Agreement shall be binding upon
and inure to the benefit of the Company and its successors, permitted assigns and legal representatives. Neither this
Agreement nor any rights or obligations under this Agreement shall be assignable by either Party without the prior written consent of the other Party. 

11.    Notices.    

        All
notices or demands of any kind required or permitted to be given by the Company or Employee under this Agreement shall be given in writing and shall be personally delivered (and
receipted for) or mailed by certified mail, return receipt requested, postage prepaid, addressed as follows: 

If
to the Company: 

CardioNet, Inc.

1010
Second Avenue, Suite 700

San Diego, California 92101

Attn: Secretary 

If
to Employee:

James
M. Sweeney

537 County Line Road

Radnor, PA 19087 

        Any
such written notice shall be deemed received when personally delivered or three (3) days after its deposit in the United States mail as specified above. Either Party may
change its address for notices by giving notice to the other Party in the manner specified in this section. 

12.    Governing Law.    

        This
Agreement is made and entered into in San Diego, California, and it shall be construed and interpreted in accordance with the laws of the State of California as applied to
agreements among California residents entered into and to be performed entirely within California. 

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13.    Integration.    

        This
Agreement contains the entire agreement of the Parties relating to the subject matter of this Agreement, and supersedes all prior oral and written employment agreements or
arrangements between the Parties. This Agreement cannot be amended or modified except by a written agreement signed by Employee and an authorized officer the Company (other than Employee). 

14.    Waiver.    

        No
term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against whom the waiver is claimed, and any
waiver of any such term, covenant, condition or breach shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach. 

15.    Severability.    

        The
unenforceability, invalidity or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid or illegal. 

16.    Interpretation; Construction.    

        The
headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement. The Parties acknowledge that each Party and its counsel has
reviewed and revised, or had an opportunity to review and revise, this Agreement, and the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of this Agreement. 

17.    Counterparts.    

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

18.    Binding Arbitration.    

        18.1    Any dispute, claim or controversy with respect to Employee's termination
of employment with the Company (whether the termination of employment is voluntary or involuntary), and any dispute, claim or controversy with respect to incidents or events leading to such
termination or the method or manner of such termination, and/or any compensation or stock owed to Employee of any type, and any question of arbitrability hereunder, shall be settled, to the fullest
extent permitted by law, exclusively by arbitration.    

        18.2    Employee and the Company each waive their constitutional rights to have
such matters determined by a jury. Instead of a jury trial, an arbitrator shall be chosen by the Company and Employee. The Parties hereby acknowledge that arbitration is preferred because, among other
reasons, it is quicker, less expensive and less formal than litigation in court.    

        18.3    The arbitrator shall not have the authority to alter, amend, modify, add
to or eliminate any condition or provision of this Agreement. The arbitration shall be held in San Diego County, California. The award of the arbitrator shall be final and binding on the Parties.
Judgment upon the arbitrator's award may be entered in any court, state or federal, having jurisdiction over the Parties. Each Party shall bear its respective costs of arbitration.    

        18.4    Should any court determine that any provision(s) of this Agreement to
arbitrate is void or invalid, the Parties specifically intend every other provision of this Agreement to arbitrate to remain enforceable and intact. Each Party hereby acknowledges that it prefers
arbitration to recourse to the courts, for the reasons described above, and has prescribed arbitration as its sole and exclusive method of dispute resolution.    

19.    Entire Agreement.    

        This
Agreement constitutes the full and entire understanding and agreement between the Parties with regard to the subject matter hereof and amends, supersedes and replaces in its
entirety the Prior Agreement. 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK] 

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        IN
WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first above written. 

	 	 	COMPANY
	

 	
 	
CARDIONET, INC., a California corporation
	

 	
 	

By:	
 	

/s/  FRED MIDDLETON      

	 	 	Name:	 	Fred Middleton
	 	 	Title:	 	Chairman, Compensation Committee of the Board of Directors
	

 	
 	
EMPLOYEE
	

 	
 	

/s/  JAMES M. SWEENEY      
 James M. Sweeney

[SIGNATURE
PAGE TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT] 

7

 
 
 

Exhibit A    
    

 
  RELOCATION BENEFITS    
    

	 
	 	Description of Benefits
	 	Estimate of Dollar Amount

	1.	 	Reasonable costs associated with the relocation of Employee's family and personal effects to San Diego, California (including packing, moving, insurance and storage of belongings). 	 	$	30,000
	

2.	
 	

Transfer taxes associated with the sale of Employee's principal residence in Pennsylvania. 	
 	
$	

40,000
	

3.	
 	

Real estate broker commission equal to 5% of the sales price of principal residence of Employee in Pennsylvania. 	
 	
$	

100,000
	

4.	
 	

Closing costs associated with the purchase of Employee's principal residence in San Diego, California upon Employee's relocation from Pennsylvania. 	
 	
$	

10,000
	

5.	
 	

Miscellaneous out of pocket expenses associated with Items 1 through 4 above. 	
 	
$	

20,000

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FIRST AMENDMENT TO
  AMENDED AND RESTATED EMPLOYMENT AGREEMENT    
    

        THIS FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Amendment") is
made and entered into as of February 27, 2008 (the "Amendment Date"), by and between  CARDIONET, INC., a Delaware corporation (the
"Company"), and James M. Sweeney (the
"Employee"). 

 
 

RECITALS:    
    

        A.    The Employee and the Company entered into a certain Amended and Restated Employment Agreement effective as of
November 1, 2005 (the "Employment Agreement"). Terms used herein and not otherwise defined herein have the same meaning given in the Employment
Agreement. 

        B.    The Company and Employee wish to amend the Employment Agreement as set forth below. 

 
 

AGREEMENT:    
    

        NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Employee and the Company agree as follows effective as of the Amendment Date: 

        1.    Section 1.2 of the Employment Agreement is hereby amended and restated to read in its entirety as follows: 

"1.2 Employee shall be the Company's Executive Chairman." 

        2.    Section 3 of the Employment Agreement is hereby amended and restated to read in its entirety as follows: 

        "Term of Employment.

        Subject
to earlier termination pursuant to Section 7 hereof, Employee shall be employed by the Company pursuant to this Agreement for an initial term, commencing on the Effective
Date and ending on December 31, 2008, provided that the term of this Agreement shall continue from month to month after such time in the absence of 30 days written notice to the contrary
from either Party to the other Party (the "Termination Date")." 

        3.    The following Section 7.6 is hereby added to the Employment Agreement: 

        "Section 409A.

        Benefits
payable under this Section 7.3 above, to the extent of payments made from the date of Employee's termination through March 15th of the calendar year following such
termination, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the "short-term
deferral" rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations; to the extent such payments are made following said March 15th, they are intended to
constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination from service and payable pursuant to
Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision, with any excess amount being regarded as subject to the
distribution requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment to Employee be
delayed until six (6) months after separation from service if Employee is a "specified employee" within the meaning of the aforesaid section of the Code at the time of such separation from
service." 

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        4.    Choice of Law. This Agreement is made and entered into in San Diego,
California, and it shall be construed and interpreted in accordance with the laws of the State of California as applied to agreements among California residents entered into and to be performed
entirely within California. 

        5.    Effect of Amendment. The Company and Employee hereby agree that all other
terms and conditions of the Employment Agreement shall remain in full force and effect except as modified by this Amendment. 

        6.    Counterparts. This Amendment may be executed in any number of counterparts
and signatures delivered by facsimile, each of which shall be deemed an original, but all of which together shall constitute one instrument. 

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        IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first above written. 

	"Company"	 	CARDIONET, INC.

a Delaware corporation
	

 	
 	

By:	
 	

/s/  ARIE COHEN      
 Arie Cohen

Chief Executive Officer and President
	

"Employee"	
 	

/s/  JAMES M. SWEENEY      
 James M. Sweeney

[FIRST
AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT] 

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QuickLinks

Exhibit 10.6

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

RECITALS

AGREEMENT

Exhibit A

RELOCATION BENEFITS

FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT

RECITALS

AGREEMENTExhibit 4.20

 

EXECUTION
VERSION

 

 

 

IHOP FRANCHISING, LLC,

as Issuer

 

and

 

IHOP IP, LLC,

as Co-Issuer

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

Indenture Trustee

 

 

SERIES SUPPLEMENT

 

for the Series 2007-3 Fixed Rate Term Notes

 

 

November 29, 2007

 

 

 

This Series Supplement (the “Series Supplement”) is dated November 29, 2007 and is made among
IHOP FRANCHISING, LLC, a Delaware limited liability company (the “Issuer”), IHOP IP, LLC, a Delaware limited liability
company (the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”) and Wells Fargo Bank, National Association, as
indenture trustee (herein, together with its permitted successors in the trusts
under the Indenture, called the “Indenture Trustee”).

 

WITNESSETH:

 

WHEREAS, the Co-Issuers and the Indenture Trustee have entered into the
Base Indenture (the “Base
Indenture”), dated as of March 16,
2007, providing for the issuance from time to time of one or more Series of
Notes, as provided therein;

 

WHEREAS, the Co-Issuers, the Indenture Trustee and Financial Guaranty
Insurance Company have entered into the Series Supplements, each dated as
of March 16, 2007, providing for the creation and the issuance of the Series 2007-1
Notes and the Series 2007-2 Notes, respectively;

 

WHEREAS, the Co-Issuers have determined to issue a Series of Notes
consisting of $245,000,000 Fixed Rate Term Notes (the “Series 2007-3 Notes”); and

 

WHEREAS, the Co-Issuers and the Indenture Trustee are executing and
delivering this Series Supplement in order to create and provide for the Series 2007-3
Notes (the “Series Supplement” and, together with the Base Indenture and such
other Series Supplements and Supplemental Indentures as may be
executed from time to time, the “Indenture”).

 

NOW, THEREFORE, in consideration of mutual covenants and agreements and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Capitalized terms used herein without definition shall have the
meanings given to such terms in the Base Indenture.

 

ARTICLE II

 

CREATION OF SERIES 2007-3
NOTES; DESIGNATION

 

There is hereby created for issuance under this Series Supplement,
upon and subject to the conditions set forth in Article III below,
a Series of Notes designated the Series 2007-3 Fixed Rate Term Notes
(the “Series 2007-3
Notes”). The Series 2007-3 Notes
shall be a Senior Series of Notes for purposes of the Indenture. The Series 2007-3
Notes shall be governed by the terms set forth in the Base Indenture and this Series Supplement.

 

 

ARTICLE III

 

CONDITIONS TO ISSUANCE

 

The Series 2007-3 Notes shall be issued only upon (a) the
satisfaction of the conditions precedent in the Base Indenture (including but
not limited to those set forth in Section 2.3 and Article III
thereof) and (b) receipt by the Indenture Trustee of the following:

 

(i)                                     counterparts of this Series Supplement
executed and delivered by the Co-Issuers and the Indenture Trustee;

 

(ii)                                  a Company Order authorizing and
directing the authentication and delivery of the Series 2007-3 Notes by
the Indenture Trustee on the terms contained in this Series Supplement on
the date specified in such Company Order; and

 

(iii)                               written confirmation that the Series 2007-3
Notes will be rated “Baa2” by Moody’s and “BBB-” by S&P upon issuance.

 

ARTICLE IV

 

PRINCIPAL TERMS

 

Section 4.1                                      Series 2007-3 Note Interest
Amount, Fees and Closing Date.

 

(a)                                  Series 2007-3 Note Interest
Amount. The Series 2007-3
Note Interest Amount shall be payable in arrears on each Payment Date commencing
on January 22, 2008 as the Series Interest Payment Amount relating to
the Series 2007-3 Notes. The “Series 2007-3 Note Interest Amount” shall be an amount equal to the accrued interest
over the immediately preceding Interest Accrual Period at the Series 2007-3
Note Interest Rate on the Series 2007-3 Outstanding Principal Amount
together with all accrued but unpaid Series 2007-3 Monthly Extension
Period Contingent Additional Interest and Series 2007-3 Monthly Post-ARD
Contingent Additional Interest (on the first day of such Interest Accrual
Period after giving effect to all payments of principal made to Holders of such
Series of Notes on such day), calculated based on a 360-day year of twelve
30-day months.

 

The “Series 2007-3
Note Interest Rate” shall be equal
to a fixed rate of 7.0588% per annum.

 

(b)                                 Series 2007-3 Contingent
Additional Interest Amounts. The “Series 2007-3 Monthly Extension Period Contingent
Additional Interest Amount” shall
be, with respect to any Interest Accrual Period that occurs during the Series 2007-3
Extension Period, an amount of additional interest on the Series 2007-3
Aggregate Outstanding Principal Amount together with all accrued but unpaid Series 2007-3
Monthly Extension Period Contingent Additional Interest (as of the first day of
such Interest Accrual Period and after giving effect to all payments of
principal made to Holders of such Series of Notes on such day) accrued
over the preceding Interest Accrual Period at an annual rate equal to the
excess, if any, of: (a) the sum of one-month LIBOR plus 2.855% (the
“Series 2007-3
Original Spread”) plus 0.50%
per annum (the “Series 2007-3
Extension Spread”) (such aggregate
amount in this clause (a), the “Series 2007-3

 

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Monthly
Extension Period Stepped-Up Interest Rate”), over (b) the Series 2007-3
Note Interest Rate, calculated on the basis of a 360-day year and the actual
number of days elapsed during such period. Any unpaid Series 2007-3
Monthly Extension Period Contingent Additional Interest Amount shall accrue
interest to the extent legally permissible at the Series 2007-3 Monthly
Extension Period Stepped-Up Interest Rate prior to the Adjusted Repayment Date
and at the 2007-3 Monthly Post-ARD Stepped-Up Interest Rate thereafter. The “Series 2007-3
Monthly Post-ARD Contingent Additional Interest Amount” shall be, with respect to any Interest Accrual
Period following the later of (i) the Series 2007-3 Anticipated
Repayment Date and (ii) the Adjusted Repayment Date, if the Series 2007-3
Final Payment has not been made, an amount of additional interest on the Series 2007-3
Aggregate Outstanding Principal Amount (as of the first day of such Interest
Accrual Period and after giving effect to all payments of principal made to Holders
of such Series of Notes on such day) accrued over the preceding Interest
Accrual Period at an annual rate equal to the excess, if any, of: (a) the
sum of one-month LIBOR plus the Series 2007-3 Original Spread plus
1.0% per annum (the “Series 2007-3
Monthly  Post-ARD Spread”) (such aggregate amount in this clause (a), the “Series 2007-3
Monthly Post-ARD Stepped-Up Interest Rate”),
over (b) the Series 2007-3 Note Interest Rate, calculated on the
basis of a 360- day year and the actual number of days elapsed during such
period. Any unpaid Series 2007-3 Monthly Post-ARD Contingent Additional
Interest Amount shall accrue interest to the extent legally permissible at the Series 2007-3
Monthly Post-ARD Stepped-Up Interest Rate.

 

Any Series 2007-3 Monthly Extension Period Contingent Additional
Interest Amount or Series 2007-3 Monthly Post-ARD Contingent Additional
Interest Amount (as applicable), and any interest accrued thereon at the Series 2007-3
Monthly Extension Period Stepped-Up Interest Rate or Series 2007-3 Monthly
Post-ARD Stepped-Up Interest Rate, as applicable, shall accrue from the
relevant Payment Date but shall only be payable after (i) all accrued and
unpaid interest on the outstanding principal balance of the Series 2007-3
Notes at the Series 2007-3 Note Interest Rate and on the outstanding
principal amount of the other Series of Notes at their respective
applicable interest rates,  (ii) all
outstanding principal amounts on all Series of Notes that are due and
payable on such Payment Date (in connection with a Mandatory Redemption Period
or the Series Anticipated Repayment Date or otherwise) and (iii) all
other amounts senior in priority to the Series 2007-3 Monthly Extension
Period Contingent Additional Interest Amount and Series 2007-3 Monthly
Post-ARD Contingent Additional Interest Amount have been paid in full in
accordance with the priority of payments set forth in Articles X and XI of the
Base Indenture. Failure to pay any Series 2007-3 Monthly Extension Period
Contingent Additional Interest Amount or Series 2007-3 Monthly Post-ARD
Contingent Additional Interest Amount (as applicable) shall not be an Event of
Default; provided, that all accrued but unpaid Series 2007-3
Monthly Extension Period Contingent Additional Interest Amount or Series 2007-3
Monthly Post-ARD Contingent Additional Interest Amount (as applicable) shall (i) accrue
interest to the extent legally permissible at the Series 2007-3 Monthly
Extension Period Stepped-Up Interest Rate or Series 2007-3 Monthly
Post-ARD Stepped-Up Interest Rate, as applicable, and (ii) be paid in full
on the Series 2007-3 Legal Final Maturity Date, on any Payment Date with
respect to which a prepayment in full of the Series 2007-3 Notes is made
or on any other day on which all of the Series 2007-3 Notes are required
to be paid in full. For purposes of Article X and Article XI of the
Base Indenture, any Series 2007-3 Monthly Extension Period Contingent
Additional Interest Amount or Series 2007-3 Monthly Post-ARD Contingent
Additional Interest Amount, as applicable, and any interest accrued thereon at
the Series 2007-3 Monthly Extension Period Stepped-Up Interest Rate or Series 2007-3
Monthly Post-ARD

 

3

 

Stepped-Up Interest Rate, as applicable,
shall be deemed a Series Additional Interest Payment Amount and shall not
be rated.

 

During a Series 2007-3 Extension Period and any other applicable Series Extension
Period, to the extent specified in the applicable Series Supplement, 37.5%
of amounts remaining in the Collections Account after giving effect to Section 10.9(a)
through Section 10.9(u) of the Base Indenture for such purpose on
each Weekly Allocation Date will be deposited to the Principal Payment Accounts
for the Series 2007-3 Notes and any other applicable Senior Series of
Notes, allocated, ratably, on the basis of the Aggregate Outstanding Principal
Amount for the Senior Series of Notes for which such deposit shall be
made, for payment of principal of such Senior Series of Notes until paid
in full, if any, for the applicable Payment Date.

 

“Series 2007-3 Final Payment” means the payment of all accrued and unpaid
interest on, principal of, all Outstanding Series 2007-3 Notes.

 

(c)                                  Series 2007-3 Closing Date. The Closing Date shall be November 29,
2007.

 

(d)                                 Series 2007-3 Initial Interest
Accrual Period.
The Initial Interest Accrual Period for the Series 2007-3 Notes shall
commence on the Closing Date and end on  January 19,
2008.

 

Section 4.2                                      Payment of 2007-3 Note Principal.

 

(a)                                  Series 2007-3 Notes Principal Payment
at Legal Maturity.
The Series 2007-3 Outstanding Principal Amount shall be due and payable on
the Series 2007-3 Legal Final Maturity Date. The Series 2007-3
Outstanding Principal Amount may be subject to Mandatory Redemption
pursuant to and in accordance with Section 9.1 of the Base
Indenture and to Optional Redemption in whole or in part pursuant to and
in accordance with Section 9.2 of the Base Indenture.

 

(b)                                 Series 2007-3 Anticipated
Repayment Date.
The Series Anticipated Repayment Date for the Series 2007-3 Notes
shall be the Payment Date occurring in December 2012, unless extended as
provided below in this Section 4.2 (such date, the “Series 2007-3
Anticipated Repayment Date”).

 

(i)                                     Extension Election. Subject to the conditions set
forth in Section 4.2(b)(ii) of this Series Supplement, the
Co-Issuers shall have the option on or before the Payment Date occurring in June 2012
to elect (the “Series 2007-3
Extension Election”) to extend the Series 2007-3
Anticipated Repayment Date to the Payment Date occurring in June 2013 (the
“Adjusted Repayment
Date”) by delivering written notice
to the Indenture Trustee and the Noteholders; and

 

(ii)                                  Conditions Precedent to Extension
Election. It
shall be a condition to the effectiveness of the Series 2007-3 Extension
Election that, on the Accounting Date occurring in December 2012 (the “Extension Determination
Date”), (a) the Series Debt
Service Coverage Ratio relating to the Series 2007-3 Notes is greater than
or equal to

 

4

 

2.80x, (b) no
Mandatory Redemption Event (or an event which with the lapse of time or giving
of notice would be such a Mandatory Redemption Event) relating to the Series 2007-3
Notes, Default or Event of Default has occurred and is continuing or would be a
direct and immediate consequence of such extension; and (c) IHOP
System-wide Sales are greater than or equal to $2,100,000,000.

 

For purposes of this Series Supplement, a “Series 2007-3
Extension Period” means, as
applicable, the period from and including the Payment Date occurring in December 2012
to and excluding the Payment Date occurring in June 2013 following the Series 2007-3
Extension Election and subject to the satisfaction of all the conditions
required for such extension as of the Extension Determination Date.

 

For purposes of this Series Supplement, “IHOP System-wide Sales” means retail sales during the fiscal year
preceding the Extension Determination Date of IHOP Restaurants operated by
Franchisees, Area Licensees, and IHOP Corp. or any Affiliate thereof.

 

(iii)                               Any notice given pursuant to Section 4.2(b)(i) of
this Series Supplement shall be irrevocable; provided that if the
conditions set forth in Section 4.2(b)(ii) are not met by the
applicable date, the election set forth in such notice shall automatically be
deemed ineffective.

 

(c)                                  Series 2007-3 Notices of Final
Payment. The
Co-Issuers shall notify the Indenture Trustee and the Rating Agencies on or
before the Record Date preceding the Payment Date which will be the Series 2007-3
Anticipated Repayment Date; provided, however, that with respect
to any final payment that is made in connection with any Mandatory Redemption
or Optional Redemption in full, the Co-Issuers shall not be obligated to
provide any additional notice to the Indenture Trustee or the Rating Agencies
of such final payment beyond the notice required to be given in connection with
such Mandatory Redemption or Optional Redemption, as the case may be,
under Article IX of the Base Indenture. The Indenture Trustee shall
provide written notice to each person in whose name a Series 2007-3 Note
is registered at the close of business on such Record Date that the immediately
succeeding Payment Date will be the Series 2007-3 Anticipated Repayment
Date. Such written notice to be sent to the Series 2007-3 Noteholders
shall be made at the expense of the Co-Issuers and shall be mailed by the
Indenture Trustee within five (5) Business Days of receipt of notice from
the Co-Issuers indicating that the final payment will be made and shall specify
that such final payment will be payable only upon presentation and surrender of
the Series 2007-3 Notes and shall specify the place where the Series 2007-3
Notes may be presented and surrendered for such final payment.

 

(d)                                 Notices to Irish Stock Exchange.

 

(i)                                     Solely for purposes of this Series Supplement,
if and for so long as the Series 2007-3 Notes are listed on the Irish
Stock Exchange and any action is required of the Irish Paying Agent, then, for
purposes of determining when such Irish Paying Agent action is required, “Business
Day” shall also be required to be a day on which banking institutions are open
for business in Dublin, Ireland. “Irish Paying Agent” shall mean Custom House
Administration and Corporate Services in its capacity as such, and its
permitted successors and assigns in such capacity.

 

5

 

(ii)                                  For so long as any Class of Series 2007-3
Notes is listed on the Irish Stock Exchange and the rules of such exchange
so require, the Indenture Trustee shall deliver written notice to the Irish
Paying Agent (for notification to the Irish Stock Exchange) of any supplemental
indenture made pursuant to Section 8.1 or 8.2 of the Base Indenture within
ten (10) days following the date of such supplemental indenture.

 

(iii)                               For so long as any Class of Series 2007-3
Notes is listed on the Irish Stock Exchange and the rules of such exchange
so require, the Co-Issuers shall notify the Irish Paying Agent (for
notification to the Irish Stock Exchange) if the rating assigned by any Rating
Agency to such Class of Series 2007-3 Notes is reduced or withdrawn.

 

(iv)                              For so long as the Series 2007-3
Notes are listed on the Irish Stock Exchange and the rules of the Irish
Stock Exchange so require, the Indenture Trustee shall deliver written notice
of an Optional Redemption of the Series 2007-3 Notes pursuant to Section 9.2
of the Base Indenture to the Irish Paying Agent (for notification to the Irish
Stock Exchange) at least ten (10) days prior to the Optional Redemption
Date.

 

Section 4.3                                      Principal Terms of the Series 2007-3
Notes. The Series 2007-3
Notes shall have the following Principal Terms:

 

(a)                                  Initial Series Aggregate
Principal Amount.
The Initial Series Aggregate Outstanding Principal Amount for the Series 2007-3
Notes shall be $245,000,000.

 

(b)                                 Maximum Series Aggregate
Principal Amount.
The maximum Aggregate Outstanding Principal Amount for the Series 2007-3
Notes shall be $245,000,000.

 

(c)                                  Series Specific Accounts
Established Pursuant to Article X of the Base Indenture.

 

(i)                                     Series 2007-3 Interest Payment
Account;

 

(ii)                                  Series 2007-3 Principal Payment
Account;

 

(iii)                               Series 2007-3 Interest Reserve
Account; and

 

(iv)                              Series 2007-3 Trigger Reserve
Account.

 

(d)                                 Series Initial Interest Reserve
Deposit Amount.
$4,323,515 shall be deposited into the Series 2007-3 Note Interest Reserve
Account on the Closing Date.

 

(e)                                  Series Interest Reserve Account
Required Amount.

 

(i)                                     The Series Interest Reserve
Account Required Amount with respect to the Series 2007-3 Notes (the “Series 2007-3
Interest Reserve Account Required Amount”)
on each Payment Date and each subsequent Weekly Allocation Date up to the next
Payment Date shall be, (A) if the Series Debt Service Coverage Ratio
determined as of each of the three preceding Accounting Dates is equal to or
greater than 2.25x, the

 

6

 

aggregate amount,
without duplication, of the Estimated Daily Reserve Interest Amount for each
day of the next Interest Accrual Period or (B) if the Series Debt
Service Coverage Ratio determined as of each of the three preceding Accounting
Dates is less than 2.25x, the product of (i) three (3) and (ii) the
amount determined in accordance with (A); provided that with respect to
the first three Payment Dates after the Closing Date, the Series 2007-3
Interest Reserve Account Required Amount shall be the amount determined in
accordance with (B) above.

 

(ii)                                  Notwithstanding the foregoing, to
the extent any portion of the Aggregate Outstanding Principal Amount of Series 2007-3
Notes are not subject to a financial guaranty policy substantially similar to
the Series 2007-1 Insurance Policy, such portion of the Series 2007-3
Interest Reserve Account Required Amount attributable to such uninsured portion
of the Aggregate Outstanding Principal Amount of Series 2007-3 Notes (the “Series 2007-3
Interest Reserve Account Required Amount Uninsured Portion”) shall remain to be calculated in the manner set
forth in Section 4.3(e)(i)(B) above regardless of the level of the Series Debt
Service Coverage Ratio; provided that to the extent any such uninsured
portion of the Aggregate Outstanding Principal Amount of the Series 2007-3
Notes subsequently becomes subject to any financial guaranty policy
substantially similar to the Series 2007-1 Insurance Policy, the Series 2007-3
Interest Reserve Account Required Amount Uninsured Portion shall be adjusted
accordingly; provided, further, that while a Mandatory Redemption
Event is continuing, the Series 2007-3 Interest Reserve Account Required
Amount shall be equal to the greater of (A) the lesser of (x) the Series 2007-3
Interest Reserve Account Required Amount Uninsured Portion then on deposit in
the Series 2007-3 Note Interest Reserve Account and (y) the product
of (aa) six (6) and (bb) the amount determined in accordance with Section 4.3(e)(i)(A) above
with respect to the uninsured portion of the Aggregate Outstanding Principal
Amount of the Series 2007-3 Notes and (B) $2,500,000.

 

For purposes of this Series Supplement, “Estimated Daily Reserve Interest Amount” means (a) for any day during the first
Interest Accrual Period, $48,039, (b) for any day during the second
Interest Accrual Period, $48,039, and (c) for any day during each
subsequent other Interest Accrual Period, the average of the Daily Reserve
Interest Amount for each day during the most recent prior two (2) consecutive
Interest Accrual Periods.

 

For purposes of this Series Supplement, the “Daily Reserve Interest
Amount” means the (a) product
of (i) the Series 2007-3 Note Rate in effect for such Interest
Accrual Period and (ii) the aggregate principal amount of Series 2007-3
Notes Outstanding as of the close of business on such day; divided by (b) 360.

 

(f)                                    Series Additional Interest
Payment Amount.
Any Series 2007-3 Monthly Extension Period Contingent Additional Interest
Amount and any Series 2007-3 Post-ARD Contingent Additional Interest
Amount, as applicable, and any interest accrued thereon at the Series 2007-3
Monthly Extension Period Stepped-Up Interest Rate or the Series 2007-3
Monthly Post-ARD Stepped-Up Interest Rate, as applicable, shall be deemed a Series Additional
Interest Payment Amount as specified in Section 4.1(b).

 

7

 

(g)                                 Series Legal Final Maturity
Date. The
Payment Date occurring in December 2037.

 

(h)                                 Ranking of Series 2007-3 Notes. Series 2007-3 Notes rank pari passu as to principal and interest with the Series 2007-1
Notes and the Series 2007-2 Notes and will at all times rank no less than pari passu as to principal and interest with any other Series of
Notes.

 

(i)                                     Series Optional Redemption
Premium. The
Series Optional Redemption Premium payable to Holders of the Series 2007-3
Notes upon Optional Redemption of any Series 2007-3 Notes will be an amount
equal to the excess, if any, of (a) the discounted present value as of the
related Series 2007-3 Optional Redemption Premium Calculation Date of such
Series 2007-3 Optional Principal Redemption Amount as if paid on the Series 2007-3
Anticipated Repayment Date and the amount of interest that would have been
payable thereon after the applicable Optional Redemption Date to but not
including the Series 2007-3 Anticipated Repayment Date, utilizing a
discount rate equal to the Swap Rate (or EDSF Rate if the Anticipated Remaining
Life on such date is less than 2 years), over (b) such Series 2007-3
Optional Principal Redemption Amount. All calculations of the Series Optional
Redemption Premium shall be calculated based on a 360-day year of twelve 30-day
months.

 

“Swap Rate”
means, when used with respect to any Business Day for any tenor, the mid-market
swap rate for such tenor appearing on page 19901 of the Telerate Service
(or any successor service or, if such service or successor service is not
available, a substitute rate, which will be the median of three quoted rates
determined by the Trustee requesting substitute rate quotes from three broker
dealers of nationally recognized standing) on such Business Day.

 

“Series 2007-3 Optional Redemption Premium Calculation
Date” means the date on which the
applicable Series Optional Redemption Premium (if any) to be paid in connection
with an Optional Redemption will be calculated, which calculation date shall be
no earlier than the fifth Business Day before the applicable Optional
Redemption Date.

 

“Series 2007-3 Optional Principal Redemption Amount” means, with respect to any Optional Redemption
Date, the Aggregate Outstanding Principal Amount of Series 2007-3 Notes to
be redeemed.

 

“Series 2007-3 Anticipated Life” means, with respect to any date, the period of
time between such date and the Series 2007-3 Anticipated Repayment Date.

 

(j)                                     Series Minimum Debt Service
Coverage Ratio.
The Series Minimum Debt Service Coverage Ratio applicable to the Series 2007-3
Notes shall be 1.50x; provided that so long as any Series 2007-3
Notes are Outstanding, the Series Minimum Debt Service Coverage Ratio
applicable to any Series of Notes to be issued after the Closing Date
shall not be greater than 1.50x.

 

(k)                                  Series IHOP Corp. Consolidated
Leverage Ratio Threshold. The Series IHOP Corp. Consolidated Leverage
Ratio Threshold applicable to the Series 2007-3 Notes shall be 7.75x for
the first twelve-month period following the Waiver Date, 7.50x for the second
twelve-month period following the Waiver Date, and 7.00x anytime thereafter. “Waiver Date” means November 28, 2007.

 

8

 

(l)                                     Series Trigger Reserve
Proportions and Related Series DSCR Trigger Reserve Account Deposit
Threshold Ranges.
On each Weekly Allocation Date, a Series Trigger Reserve Proportion of (A) 40%
shall be applicable if the Series Debt Service Coverage Ratio determined
as of the immediately preceding Accounting Date is less than 1.85x and greater
than or equal to 1.65x and (B) 80% shall be applicable if the Series Debt
Service Coverage Ratio determined as of the immediately preceding Accounting
Date is less than 1.65x and greater than or equal to 1.50x.

 

(m)                               Series Trigger Reserve Release
Event. With
respect to any Payment Date that occurs during a Series Trigger Reserve Period,
a Series Trigger Reserve Release Event relating to the Series 2007-3
Notes shall occur if (A) (i) the least of the Series Debt
Service Coverage Ratios relating to the Series 2007-3 Notes as was
determined as of each of the preceding three (3) Accounting Dates is
greater than or equal to 1.65x and (ii) the Series Debt Service
Coverage Ratio relating to the Series 2007-3 Notes as was determined as of
the fourth preceding Accounting Date was less than 1.65x or (B) (i) the
least of the Series Debt Service Coverage Ratios relating to the Series 2007-3
Notes as was determined each of the preceding three (3) Accounting Dates
is greater than or equal to 1.85x and (ii) the Series Debt Service
Coverage relating to the Series 2007-3 Notes as was determined as of the
fourth preceding Accounting Date was less than 1.85x; provided, that no Series Trigger
Reserve Release Event relating to the Series 2007-3 Notes shall occur
prior to the Payment Date occurring in May 2008, or if a Default, Event of
Default, Servicer Termination Event or a Mandatory Redemption Event relating to
the Series 2007-3 Notes is continuing.

 

(n)                                 Series Trigger Reserve Release
Amount. The Series Trigger
Reserve Release Amount with respect the Series 2007-3 Notes shall be equal
to the amount, if any, by which (a) the amount then on deposit in the Series 2007-3
Trigger Reserve Account exceeds (b) the Release Ratio Amount.

 

For purposes of this Series Supplement, the “Release Ratio Amount” is the amount of funds that would have been
deposited to the Series 2007-3 Trigger Reserve Account during a Series Trigger
Reserve Period had the Series Debt Service Coverage Ratio during such Series Trigger
Reserve Period been equal to the least of the Series Debt Service Coverage
Ratios relating to the Series 2007-3 Notes as was determined as of any of
the immediately preceding three (3) Accounting Dates, following a Series Trigger
Reserve Release Event.

 

For purposes of this Series Supplement, “Series Trigger Reserve Period” means a period that commences on the first
Accounting Date on which the Series Debt Service Coverage Ratio with
respect to the Series 2007-3 Notes is less than 1.85x and ending on the
first subsequent Accounting Date on which the Series Debt Service Coverage
Ratio determined as of such Accounting Date and the immediately preceding two (2) Accounting
Dates is equal to or greater than 1.85x.

 

(o)                                 Series Interest Reserve Release
Event. On
any Payment Date, a Series Interest Reserve Release Event relating to the Series 2007-3
Notes occurs when the amount on deposit in the Series 2007-3 Interest
Reserve Account is greater than the Series 2007-3 Interest Reserve Account
Required Amount; provided, that no Series Interest Reserve Release
Event relating to the Series 2007-3 Notes shall occur prior to Payment
Date occurring in May 2008, or

 

9

 

if a Servicer
Termination Event, Default, Event of Default or a Mandatory Redemption Event
relating to the Series 2007-3 Notes is continuing; provided, further,
that a Series Interest Release Event with respect to the Series 2007-3
Notes shall only occur in connection with a reduction in the Aggregate
Outstanding Principal Amount of such Notes.

 

(p)                                 Series Interest Reserve Release
Amount. On
any Payment Date with respect to which a Series Interest Reserve Release
Event occurs, the Series Interest Reserve Release Amount shall be the
excess of the amount on deposit in the Series 2007-3 Interest Reserve
Account over the Series 2007-3 Interest Reserve Account Required Amount.

 

(q)                                 Additional Issuance Series DSCR
Threshold. The
Additional Issuance Series DSCR Threshold applicable to the Series 2007-3
Notes shall be 2.50x.

 

(r)                                    Defective Asset Payment Series DSCR
Threshold. The
Defective Asset Payment Series DSCR Threshold applicable to the Series 2007-3
Notes shall be 3.50x.

 

(s)                                  STE Series DSCR Threshold. The STE Series DSCR Threshold
applicable to the Series 2007-3 Notes shall be 1.25x

 

(t)                                    EOD Series DSCR Threshold. The EOD Series DSCR Threshold
applicable to the Series 2007-3 Notes shall be 1.25x.

 

(u)                                 Unhedged Floating Rate Principal
Limit. The
Unhedged Floating Rate Principal Limit applicable with respect to the Series 2007-3
Notes shall be $50,000,000.

 

Section 4.4                                      Restrictions on Issuance of
Additional Notes.
For so long as the Series 2007-1 Class M-1 Fixed Rate Term
Subordinated Notes co-issued by Applebee’s Enterprises LLC, Applebee’s IP LLC
and certain “Restaurant Holders” remain outstanding, the Co-Issuers may not
issue any Notes subsequent to the issuance of the Series 2007-3 Notes
under the Indenture, except for the purpose of refinancing any existing Series of
Notes.

 

Section 4.5                                      Mandatory Liquidation of Collateral.

 

Pursuant to Supplement No. 1 to the Base Indenture (“Supplement No.1 to the
Indenture”), dated as of November 28, 2007
by and among the Co-Issuers and the Indenture Trustee, the Base Indenture has
been amended to provide, among other things, that if any 2007-3 Notes are
Outstanding on the date fifteen (15) Business Days prior to the Payment Date
occurring in December 2022 or the date fifteen (15) Business Days prior to
the two year anniversary of each prior Auction Date thereafter until no Notes
are Outstanding (each such date, an “Auction Date”),
an auction of the Collateral shall be conducted on such Auction Date by the
Indenture Trustee at the expense of the Co-Issuers (which expenses will be paid
by the Co-Issuers in accordance with the Weekly Collections Account Allocation
Priority and shall be required to be reasonable and customary in all respects)
and with the assistance of (i) an Auction Agent (an “Auction Agent”) selected by the Series Controlling Party on
behalf of the Secured Parties and (ii) the Servicer (the “Mandatory Liquidation”). On the Payment Date immediately following the
Auction Date, unless the Auction Agent determines that bids received for the
purchase of the Collateral together with all other funds available to the
Co-Issuers will not be at least equal to the Aggregate Outstanding Principal
Amount of all Series of Notes plus related

 

10

 

expenses, fees, additional interest and
reimbursements the Notes shall be redeemed in whole but not in part. If such
conditions are not satisfied and the auction is not conducted successfully on
an Auction Date,  the Indenture Trustee,
together with the Auction Agent, shall attempt to conduct an auction on each
Auction Date thereafter until the Notes are redeemed in full.

 

Section 4.6                                      Additional Provisions Relating to
Mandatory Redemptions.

 

(a)                                  The Series 2007-3 Notes will be
subject to mandatory redemption on any Payment Date pursuant to Section 9.1
of the Base Indenture, if any Series DSCR Mandatory Redemption Event or
other Mandatory Redemption Event relating to any other Series of Notes
issued pursuant to the Indenture has occurred and is continuing.

 

(b)                                 For so long as any Series 2007-3
Notes remain outstanding, the Co-Issuers shall not issue any additional Series of
Notes with a Series Minimum Debt Service Coverage Ratio greater than
1.50x.

 

(c)                                  Pursuant to Supplement No. 1 to
the Indenture, the Base Indenture has been amended to provide, among other
things, that any deposit of funds to the Principal Payment Account of any
Senior Series of Notes pursuant to Section 10.9(m) of the Base
Indenture shall automatically be deemed to constitute a Mandatory Redemption
Event under the Base Indenture, except as otherwise provided in the applicable Series Supplement
for any Series of Notes. Accordingly, such deposit shall only be made if
all remaining funds in the Collection Account available for such purpose in
accordance with Section 10.9 of the Base Indenture shall be allocated
ratably to all of the Senior Series of Notes on the basis of the Aggregate
Outstanding Principal Amount for each Senior Series of Notes (and then,
after giving effect to certain other allocations and payments pursuant to the
Weekly Collections Account Allocation Priority, ratably, to each of the Senior
Subordinated Series of Notes or Subordinated Series of Notes, as
applicable).

 

ARTICLE V

 

RATIFICATION AND INCORPORATION OF
BASE INDENTURE

 

Except as otherwise expressly provided herein, all of the provisions,
terms and conditions of the Base Indenture are in all respects ratified and
confirmed, and hereby incorporated by reference; and the Base Indenture as so
incorporated and modified by this Series Supplement shall be taken, read
and construed together with this Series Supplement as one and the same
instrument.

 

ARTICLE VI

 

FORM OF NOTES

 

The form of the Series 2007-3 Notes, including the
Certificate of Authentication, shall be substantially as set forth as
Exhibits A-1, A-2 and A-3 to this Series Supplement, with such
appropriate insertions, omissions, substitutions and other variations as are required
or permitted by the Base Indenture or this Series Supplement, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon, as may be

 

11

 

consistent herewith, determined by the
Authorized Officers of the Co-Issuers executing such Notes as evidenced by
their execution of such Notes.

 

The certificates evidencing the Series 2007-3 Notes will bear
legends substantially to the following effect unless the Co-Issuers determine
otherwise in compliance with applicable law.

 

THIS SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037 (THIS “NOTE”) HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF
ANY STATE OR OTHER RELEVANT JURISDICTION, AND NEITHER IHOP FRANCHISING, LLC NOR
IHOP IP, LLC (THE “CO-ISSUERS”) HAS BEEN REGISTERED UNDER THE INVESTMENT COMPANY
ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS NOTE OR ANY INTEREST HEREIN MAY BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) IN THE UNITED
STATES TO EITHER AN INITIAL PURCHASER OR A SUBSEQUENT TRANSFEREE WHO IS BOTH A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) AND A “QUALIFIED PURCHASER” (WITHIN THE MEANING
OF THE INVESTMENT COMPANY ACT), ACTING FOR ITS OWN ACCOUNT OR ONE OR MORE
ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL PURCHASER OR SUBSEQUENT TRANSFEREE
EXERCISES SOLE INVESTMENT DISCRETION, EACH OF WHICH IS BOTH A QUALIFIED
INSTITUTIONAL BUYER AND A QUALIFIED PURCHASER, AND NONE OF WHICH IS (1) A
DEALER OF THE TYPE DESCRIBED IN PARAGRAPH (a)(1)(ii) OF RULE 144A
UNLESS IT OWNS AND INVESTS ON A DISCRETIONARY BASIS NOT LESS THAN $25,000,000
IN SECURITIES OF ISSUERS THAT ARE NOT AFFILIATED TO IT, (2) A
PARTICIPANT-DIRECTED EMPLOYEE PLAN, SUCH AS A 401(k) PLAN, OR ANY OTHER
TYPE OF PLAN REFERRED TO IN PARAGRAPH (a)(1)(i)(D) OR (a)(1)(i)(E) OF
RULE 144A, OR A TRUST FUND REFERRED TO IN PARAGRAPH (a)(1)(i)(F) OF RULE 144A
THAT HOLDS THE ASSETS OF SUCH A PLAN, UNLESS INVESTMENT DECISIONS WITH RESPECT
TO THE PLAN ARE MADE SOLELY BY THE FIDUCIARY, TRUSTEE OR SPONSOR OF SUCH PLAN, (3) FORMED
OR CAPITALIZED FOR THE SPECIFIC PURPOSE OF INVESTING IN THE ISSUER (EXCEPT
WHERE EACH BENEFICIAL OWNER IS A QUALIFIED PURCHASER), (4) A CORPORATION,
PARTNERSHIP, COMMON TRUST FUND, SPECIAL TRUST, PENSION FUND OR RETIREMENT PLAN
IN WHICH THE SHAREHOLDERS, EQUITY OWNERS, PARTNERS, BENEFICIARIES, BENEFICIAL
OWNERS OR PARTICIPANTS, AS APPLICABLE, MAY DESIGNATE THE PARTICULAR INVESTMENTS
TO BE MADE, (5) IF FORMED ON OR BEFORE APRIL 30, 1996, AN INVESTMENT
COMPANY THAT RELIES ON THE EXCLUSION FROM THE DEFINITION OF “INVESTMENT COMPANY”
PROVIDED BY SECTION 3(c)(7) OF THE INVESTMENT COMPANY ACT (OR A
FOREIGN INVESTMENT COMPANY UNDER SECTION 7(d) THEREOF RELYING ON SECTION 3(c)(7) WITH
RESPECT TO THOSE OF ITS HOLDERS THAT ARE U.S. PERSONS), UNLESS, WITH RESPECT TO
ITS TREATMENT AS A QUALIFIED PURCHASER, IT HAS, IN THE MANNER REQUIRED BY SECTION 2(a)(51)(C) OF
THE INVESTMENT COMPANY ACT AND THE RULES AND REGULATIONS THEREUNDER, RECEIVED
THE CONSENT OF ITS BENEFICIAL OWNERS THAT ACQUIRED THEIR

 

12

 

INTERESTS ON OR BEFORE APRIL 30, 1996 OR
(6) AN ENTITY THAT, IMMEDIATELY SUBSEQUENT TO ITS PURCHASE OR OTHER
ACQUISITION OF A BENEFICIAL INTEREST IN THIS NOTE, WILL HAVE INVESTED MORE THAN
40% OF ITS ASSETS IN BENEFICIAL INTERESTS IN THIS NOTE AND/OR IN OTHER
SECURITIES OF THE ISSUER (UNLESS ALL OF THE BENEFICIAL OWNERS OF SUCH ENTITY’S
SECURITIES ARE QUALIFIED PURCHASERS) TO WHOM NOTICE IS GIVEN THAT THE RESALE,
PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON THE EXEMPTION FROM
SECURITIES ACT REGISTRATION PROVIDED BY RULE 144A AND (II) OUTSIDE
THE UNITED STATES TO AN INITIAL PURCHASER OR A SUBSEQUENT TRANSFEREE WHO IS A
QUALIFIED PURCHASER AND NEITHER A “U.S. PERSON” AS DEFINED IN REGULATION S
UNDER THE SECURITIES ACT (“REGULATION S”) NOR A “U.S. RESIDENT” AS DEFINED FOR
PURPOSES OF THE INVESTMENT COMPANY ACT, ACTING FOR ITS OWN ACCOUNT OR ONE OR
MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL PURCHASER OR SUBSEQUENT
TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH OF WHICH IS A QUALIFIED
PURCHASER, AND NONE OF WHICH IS A U.S. PERSON NOR A U.S. RESIDENT, IN OFFSHORE
TRANSACTIONS IN RELIANCE ON REGULATION S, AND, IN EACH CASE, IN COMPLIANCE WITH
THE CERTIFICATIONS AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED
TO HEREIN AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR THE UNITED STATES
AND ANY OTHER RELEVANT JURISDICTION. THE INITIAL PURCHASER AND EACH SUBSEQUENT
TRANSFEREE TAKING DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE WILL BE
DEEMED TO HAVE MADE THE APPLICABLE REPRESENTATIONS AND AGREEMENTS REFERRED TO
IN THE INDENTURE. THE INITIAL PURCHASER AND EACH SUBSEQUENT TRANSFEREE TAKING
DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE IN THE FORM OF AN
INTEREST IN A REGULATION S GLOBAL NOTE RESTRICTED NOTE OR AN UNRESTRICTED NOTE
WILL BE REQUIRED TO DELIVER A TRANSFER CERTIFICATE IN THE FORM REQUIRED BY
THE INDENTURE AND WILL BE REQUIRED TO MAKE THE APPLICABLE REPRESENTATIONS AND
AGREEMENTS REFERRED TO IN THE INDENTURE.

 

ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING WILL BE OF NO
FORCE AND EFFECT AND WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER
ANY RIGHTS TO THE INITIAL PURCHASER OR ANY SUBSEQUENT TRANSFEREE,
NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE CO-ISSUERS, THE TRUSTEE
OR ANY INTERMEDIARY.

 

THE CO-ISSUERS MAY REQUIRE ANY HOLDER OF THIS NOTE WHO IS
DETERMINED NOT TO HAVE BEEN BOTH A QUALIFIED INSTITUTIONAL BUYER AND A
QUALIFIED PURCHASER AT THE TIME OF ACQUISITION OF THIS NOTE TO SELL THIS NOTE
TO A PERSON WHO IS (I) BOTH A QUALIFIED INSTITUTIONAL BUYER AND A QUALIFIED
PURCHASER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) A
QUALIFIED PURCHASER IN A TRANSFER PURSUANT TO RULE 144 UNDER THE
SECURITIES ACT OR (III) A QUALIFIED PURCHASER AND NEITHER A U.S. PERSON
NOR A U.S. RESIDENT IN A TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S.

 

13

 

The certificates evidencing the Series 2007-3 Notes that are
Regulation S Global Notes will also bear legends substantially to the following
effect unless the Co-Issuers determine otherwise in compliance with applicable
law:

 

UNTIL 40 DAYS AFTER THE ORIGINAL ISSUE DATE OF THE NOTES (THE “RESTRICTED PERIOD”) IN CONNECTION WITH THE OFFERING OF THE NOTES IN
THE UNITED STATES FROM OUTSIDE OF THE UNITED STATES, THE SALE, PLEDGE OR
TRANSFER OF THIS NOTE IS SUBJECT TO CERTAIN CONDITIONS AND RESTRICTIONS. THE
HOLDER HEREOF, BY PURCHASING OR OTHERWISE ACQUIRING THIS NOTE, ACKNOWLEDGES
THAT SUCH HOLDER IS A QUALIFIED PURCHASER, AND THAT THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE
CO-ISSUERS THAT THIS NOTE MAY BE TRANSFERRED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY TO A QUALIFIED PURCHASER AND IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE LAWS OF THE STATES, TERRITORIES AND POSSESSIONS OF THE
UNITED STATES GOVERNING THE OFFER AND SALE OF SECURITIES, AND PRIOR TO THE
EXPIRATION OF THE RESTRICTED PERIOD, ONLY (I) IN AN OFFSHORE TRANSACTION
IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (II) PURSUANT
TO AND IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT.

 

Each Series 2007-3 Note in global form will bear a legend
substantially to the following effect unless the Co-Issuers determine otherwise
in compliance with applicable law:

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW
YORK, NEW YORK 10004, OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS
NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC TO THE CO-ISSUERS OR THE REGISTRAR, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS
AN INTEREST HEREIN.

 

14

 

ARTICLE VII

GOVERNING LAW

 

THIS SERIES SUPPLEMENT AND EACH OF THE SERIES 2007-3 NOTES
SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CHOICE OF LAW RULES (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

 

ARTICLE VIII

EXECUTION IN COUNTERPARTS; EFFECTIVE TIME

 

This Series Supplement may be executed in any number of
counterparts, including by facsimile or other electronic means of
communication, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument.
This Series Supplement shall become effective upon the execution of a
counterpart hereof by the Co-Issuers and the Indenture Trustee.

 

ARTICLE IX

MODIFICATION OF SERIES SUPPLEMENT

 

This Series Supplement may not be modified except by a
writing executed by all parties hereto.

 

15

 

IN WITNESS WHEREOF, the parties hereto have caused this Series Supplement
to be duly executed by their respective officers hereunto duly authorized, as
of the day and year first above written.

 

 

	
   

  	
  IHOP
  FRANCHISING, LLC, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark
  Weisberger

  
	
   

  	
   

  	
  Name: Mark
  D. Weisberger

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IHOP IP,
  LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas
  Conforti

  
	
   

  	
   

  	
  Name: Thomas
  G. Conforti

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL

  ASSOCIATION, not in its individual

  capacity, but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Melissa
  Philibert

  
	
   

  	
   

  	
  Name: Melissa
  Philibert

  
	
   

  	
   

  	
  Title:   Vice President

  

 

16

 

Exhibit A-1

Form of Series 2007-3

Rule 144A Global Note

 

RULE 144A GLOBAL NOTE

IHOP FRANCHISING, LLC

IHOP IP, LLC

SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK
10004, OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN
PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR
IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE
CO-ISSUERS OR THE REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037 (THIS “NOTE”) HAS
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY
AUTHORITY OF ANY STATE OR OTHER RELEVANT JURISDICTION, AND NEITHER IHOP
FRANCHISING, LLC NOR IHOP IP, LLC (THE “CO-ISSUERS”) HAS BEEN REGISTERED UNDER
THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS
NOTE OR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (I) IN THE UNITED STATES TO EITHER AN INITIAL PURCHASER
OR A SUBSEQUENT TRANSFEREE WHO IS BOTH A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) AND A “QUALIFIED
PURCHASER” (WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT), ACTING FOR ITS
OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL
PURCHASER OR SUBSEQUENT TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH
OF WHICH IS BOTH A QUALIFIED INSTITUTIONAL BUYER AND A QUALIFIED PURCHASER, AND
NONE OF WHICH IS (1) A DEALER OF THE TYPE DESCRIBED IN PARAGRAPH (a)(1)(ii) OF
RULE 144A UNLESS IT OWNS AND INVESTS ON A DISCRETIONARY BASIS NOT LESS
THAN $25,000,000 IN SECURITIES OF ISSUERS THAT ARE NOT AFFILIATED TO IT, (2) A

 

A-1-1

 

PARTICIPANT-DIRECTED EMPLOYEE PLAN, SUCH AS A 401(k) PLAN, OR ANY
OTHER TYPE OF PLAN REFERRED TO IN PARAGRAPH (a)(1)(i)(D) OR (a)(1)(i)(E) OF
RULE 144A, OR A TRUST FUND REFERRED TO IN PARAGRAPH (a)(1)(i)(F) OF RULE
144A THAT HOLDS THE ASSETS OF SUCH A PLAN, UNLESS INVESTMENT DECISIONS WITH
RESPECT TO THE PLAN ARE MADE SOLELY BY THE FIDUCIARY, TRUSTEE OR SPONSOR OF
SUCH PLAN, (3) FORMED OR CAPITALIZED FOR THE SPECIFIC PURPOSE OF INVESTING
IN THE ISSUER (EXCEPT WHERE EACH BENEFICIAL OWNER IS A QUALIFIED PURCHASER), (4) A
CORPORATION, PARTNERSHIP, COMMON TRUST FUND, SPECIAL TRUST, PENSION FUND OR
RETIREMENT PLAN IN WHICH THE SHAREHOLDERS, EQUITY OWNERS, PARTNERS,
BENEFICIARIES, BENEFICIAL OWNERS OR PARTICIPANTS, AS APPLICABLE, MAY DESIGNATE
THE PARTICULAR INVESTMENTS TO BE MADE, (5) IF FORMED ON OR BEFORE APRIL 30,
1996, AN INVESTMENT COMPANY THAT RELIES ON THE EXCLUSION FROM THE DEFINITION OF
“INVESTMENT COMPANY” PROVIDED BY SECTION 3(c)(7) OF THE INVESTMENT
COMPANY ACT (OR A FOREIGN INVESTMENT COMPANY UNDER SECTION 7(d) THEREOF
RELYING ON SECTION 3(c)(7) WITH RESPECT TO THOSE OF ITS HOLDERS THAT
ARE U.S. PERSONS), UNLESS, WITH RESPECT TO ITS TREATMENT AS A QUALIFIED
PURCHASER, IT HAS, IN THE MANNER REQUIRED BY SECTION 2(a)(51)(C) OF
THE INVESTMENT COMPANY ACT AND THE RULES AND REGULATIONS THEREUNDER,
RECEIVED THE CONSENT OF ITS BENEFICIAL OWNERS THAT ACQUIRED THEIR INTERESTS ON
OR BEFORE APRIL 30, 1996 OR (6) AN ENTITY THAT, IMMEDIATELY
SUBSEQUENT TO ITS PURCHASE OR OTHER ACQUISITION OF A BENEFICIAL INTEREST IN
THIS NOTE, WILL HAVE INVESTED MORE THAN 40% OF ITS ASSETS IN BENEFICIAL
INTERESTS IN THIS NOTE AND/OR IN OTHER SECURITIES OF THE ISSUER (UNLESS ALL OF
THE BENEFICIAL OWNERS OF SUCH ENTITY’S SECURITIES ARE QUALIFIED PURCHASERS) TO
WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN
RELIANCE ON THE EXEMPTION FROM SECURITIES ACT REGISTRATION PROVIDED BY RULE 144A
AND (II) OUTSIDE THE UNITED STATES TO AN INITIAL PURCHASER OR A SUBSEQUENT
TRANSFEREE WHO IS A QUALIFIED PURCHASER AND NEITHER A “U.S. PERSON” AS DEFINED
IN REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”) NOR A “U.S. RESIDENT”
AS DEFINED FOR PURPOSES OF THE INVESTMENT COMPANY ACT, ACTING FOR ITS OWN
ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL PURCHASER OR
SUBSEQUENT TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH OF WHICH IS A
QUALIFIED PURCHASER, AND NONE OF WHICH IS A U.S. PERSON NOR A U.S. RESIDENT, IN
OFFSHORE TRANSACTIONS IN RELIANCE ON REGULATION S, AND, IN EACH CASE, IN
COMPLIANCE WITH THE CERTIFICATIONS AND OTHER REQUIREMENTS SPECIFIED IN THE
INDENTURE REFERRED TO HEREIN AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR
THE UNITED STATES AND ANY OTHER RELEVANT JURISDICTION. THE INITIAL PURCHASER
AND EACH SUBSEQUENT TRANSFEREE TAKING DELIVERY OF THIS NOTE OR AN INTEREST IN
THIS NOTE WILL BE DEEMED TO HAVE MADE THE APPLICABLE REPRESENTATIONS AND
AGREEMENTS REFERRED TO IN THE INDENTURE. THE INITIAL PURCHASER AND EACH
SUBSEQUENT TRANSFEREE TAKING DELIVERY

 

A-1-2

 

OF THIS NOTE OR AN INTEREST IN THIS NOTE IN THE FORM OF AN
INTEREST IN A REGULATION S GLOBAL NOTE RESTRICTED NOTE OR AN UNRESTRICTED NOTE
WILL BE REQUIRED TO DELIVER A TRANSFER CERTIFICATE IN THE FORM REQUIRED BY
THE INDENTURE AND WILL BE REQUIRED TO MAKE THE APPLICABLE REPRESENTATIONS AND
AGREEMENTS REFERRED TO IN THE INDENTURE.

 

ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE
AND EFFECT AND WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER ANY
RIGHTS TO THE INITIAL PURCHASER OR ANY SUBSEQUENT TRANSFEREE, NOTWITHSTANDING
ANY INSTRUCTIONS TO THE CONTRARY TO THE CO-ISSUERS, THE TRUSTEE OR ANY
INTERMEDIARY.

 

THE CO-ISSUERS MAY REQUIRE ANY HOLDER OF THIS NOTE WHO IS
DETERMINED NOT TO HAVE BEEN BOTH A QUALIFIED INSTITUTIONAL BUYER AND A
QUALIFIED PURCHASER AT THE TIME OF ACQUISITION OF THIS NOTE TO SELL THIS NOTE
TO A PERSON WHO IS (I) BOTH A QUALIFIED INSTITUTIONAL BUYER AND A
QUALIFIED PURCHASER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A,
(II) A QUALIFIED PURCHASER IN A TRANSFER PURSUANT TO RULE 144 UNDER
THE SECURITIES ACT OR (III) A QUALIFIED PURCHASER AND NEITHER A U.S.
PERSON NOR A U.S. RESIDENT IN A TRANSACTION MEETING THE REQUIREMENTS OF
REGULATION S.

 

A-1-3

 

RULE 144A GLOBAL NOTE

SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037

 

	
  No. R-1

  	
   

  	
  up to $245,000,000

  

 

SEE REVERSE FOR CERTAIN CONDITIONS

 

CUSIP Number: [•]

ISIN Number: [•]

 

IHOP FRANCHISING, LLC,

IHOP IP, LLC

 

SERIES 2007-3 FIXED RATE TERM NOTES

 

IHOP FRANCHISING, LLC, a limited liability company formed under the
laws of the State of Delaware, and IHOP IP, LLC, a limited liability company
formed under the laws of the State of Delaware (herein referred to,
collectively, as the “Co-Issuers”), for value received, hereby jointly and severally
promise to pay to CEDE & CO. or registered assigns, up to the
principal sum of TWO HUNDRED FORTY FIVE MILLION DOLLARS ($245,000,000) as
provided below and in the Indenture referred to herein. Payments of principal
shall be payable in the amounts and at the times set forth in the Indenture
described herein; provided, however, that the entire unpaid
principal amount of this Note shall be due on the Payment Date occurring in December 2037
(the “Series 2007-3
Legal Final Maturity Date”). The
Co-Issuers will pay interest on this Series 2007-3 Fixed Rate Term Rule 144A
Global Note (this “Note”) at the Series 2007-3 Note Rate for each
Interest Accrual Period in accordance with the terms of the Indenture. Such
interest will be payable in arrears on each Payment Date, which will be on the
20th day (or, if such 20th day is not a Business Day, the next succeeding
Business Day) of each calendar month, commencing January 22, 2007 (each, a
“Payment Date”). Such amounts due on this Note will be payable in
arrears on each Payment Date, which will be on the 20th day (or, if such 20th
day is not a Business Day, the next succeeding Business Day) of each calendar
month, commencing January 22, 2008 (each, a “Payment Date”).
Such amounts due on this Note will accrue for each Payment Date with respect to
(i) initially, the period from and including November 29, 2007 to but
excluding January 22, 2008 and (ii) thereafter, commencing on and
including the 20th day of each month and ending on but excluding the
20th day of the next succeeding month (each, an “Interest Accrual Period”). Such amounts due on this Note with respect to
the Note (and interest on any defaulted payments of amounts due on this Note at
the same rate) will be computed in accordance with the Indenture. In addition,
under the circumstances set forth in the Indenture, the Co-Issuers shall also
pay contingent additional interest on this Note in amounts equal to Series 2007-3
Monthly Extension Period Contingent Additional Interest Amount or the Series 2007-3
Monthly Post-ARD Contingent Additional Interest Amount, as applicable, which
shall be computed and shall be payable in the amounts and at the times set
forth in the Indenture.

 

A-1-4

 

The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Co-Issuers with respect to this Note shall be applied as provided in the
Indenture.

 

This Note is subject to mandatory and optional redemption as set forth
in the Indenture.

 

Interests in this Note are exchangeable or transferable in whole or in part for
interests in a Regulation S Global Note; provided that such transfer or
exchange complies with the applicable provisions of the Indenture relating to
the transfer of the Notes. Interests in this Note in certain circumstances may also
be exchangeable or transferable in whole but not in part for duly executed
and issued registered Definitive Notes; provided that such transfer or
exchange complies with Article II of the Base Indenture.

 

Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note. Although a summary of certain provisions of the
Indenture is set forth below and on the reverse hereof and made a part hereof,
this Note does not purport to summarize the Indenture and reference is made to
the Indenture for information with respect to the interests, rights, benefits, obligations,
proceeds and duties evidenced hereby and the rights, duties and obligations of
the Co-Issuers and the Indenture Trustee. A copy of the Indenture may be
requested from the Indenture Trustee by writing to the Indenture Trustee at:
Wells Fargo Bank, National Association, Sixth Street and Marquette Avenue, MAC
N9311-161, Minneapolis, MN 55479, Attn: Corporate Trust Services/Asset Backed
Administration. To the extent not defined herein, the capitalized terms used
herein have the meanings ascribed to them in the Indenture.

 

Subject to the next following paragraph, the Co-Issuers hereby certify
and declare that all acts, conditions and things required to be done and
performed and to have happened prior to the creation of this Note and to
constitute it as the valid obligation of the Co-Issuers enforceable in accordance
with its terms, have been done and performed and have happened in due
compliance with all applicable laws and in accordance with the terms of the
Indenture.

 

Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

 

[Remainder of page intentionally left blank]

 

A-1-5

 

IN WITNESS WHEREOF, each of the Co-Issuers has caused this instrument
to be signed, manually or in facsimile, by its Authorized Officer.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP
  FRANCHISING, LLC, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP IP,
  LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

A-1-6

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Series 2007-3 Notes issued under the
within-mentioned Indenture.

 

 

	
   

  	
  WELLS FARGO BANK,
  NATIONAL

  ASSOCIATION, as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

A-1-7

 

[REVERSE OF NOTE]

 

This Note is one of a duly authorized issue of Series 2007-3 Fixed
Rate Term Notes of the Co-Issuers designated as their Series 2007-3 Fixed
Rate Term Notes (herein called the “Series 2007-3 Notes”), all issued under (i) a Base Indenture,
dated as of March 16, 2007 (such Base Indenture, as amended, supplemented
or modified, is herein called the “Base Indenture”),
among the Co-Issuers and Wells Fargo Bank, National Association, as indenture
trustee (the “Indenture
Trustee”, which term includes any
successor Indenture Trustee under the Base Indenture), and (ii) a Series 2007-3
Fixed Rate Term Note Series Supplement to the Base Indenture, dated as of November 29,
2007 (such series 2007-3 Fixed Rate Term Note Series Supplement, as
amended, supplemented or modified from time to time, is herein called the “Series 2007-3 Series Supplement”), among the Co-Issuers and Indenture Trustee. The
Base Indenture, Series 2007-3 Series Supplement and such other Series Supplement
or Supplemental Indenture as may be executed from time to time are
referred to herein as the “Indenture”.
The Series 2007-3 Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented,
modified or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented, modified or amended.

 

The Series 2007-3 Notes are and will be secured by the Collateral
pledged as security therefor as provided in the Indenture.

 

The Notes will be issued in minimum denominations of $200,000 and
integral multiples of $1,000 in excess thereof.

 

As provided for in the Indenture, the Series 2007-3 Notes may be
redeemed, in whole or in part, at the option of the Co-Issuers. In addition,
the Series 2007-3 Notes are subject to mandatory redemption as provided
for in the Indenture. The Co-Issuers will be obligated to pay the Optional
Redemption Amount relating to the Series 2007-3 Notes in connection with
an Optional Redemption of any Series 2007-3 Notes as described in the
Indenture. As described above, the entire unpaid principal amount of this Note
shall be due and payable on the Series 2007-3 Legal Final Maturity Date.
All payments of principal of the Series 2007-3 Notes will be made pro
rata to the Holders of Series 2007-3 Notes entitled thereto.

 

Principal of and interest on this Note which is payable on a Payment
Date or on any date on which payments are permitted to be made as provided for
in the Indenture shall be paid to the Person in whose name this Note (or one or
more predecessor Notes) is registered at the close of business on the
applicable Record Date.

 

Interest and contingent additional interest, if any, will each accrue
on the Series 2007-3 Notes at the rates set forth in the Indenture. The
interest and contingent additional interest, if any, will be computed on the
basis set forth in the Indenture. The amount of interest payable on the Series 2007-3
Notes on each Payment Date will be calculated as set forth in the Indenture.

 

Payments of principal of and interest on this Note are subordinated to
the payment of certain other amounts in accordance with the Indenture.

 

A-1-8

 

If an Event of Default shall occur and be continuing, this Note may become
or be declared due and payable in the manner and with the effect provided in
the Indenture.

 

Amounts payable in respect of this Note shall be made by wire transfer
of immediately available funds to the account designated by DTC or its nominee.

 

As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the office
or agency designated by the Co-Issuers pursuant to the Indenture, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory
to the Indenture Trustee duly executed by, the Series 2007-3 Noteholder
hereof or his attorney duly authorized in writing, with such signature
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended, and accompanied by such other
documents as the Indenture Trustee and the Note Registrar may require and
as may be required by the Indenture, and thereupon one or more new Series 2007-3
Notes of authorized denominations in the same aggregate principal amount will
be issued to the designated transferee or transferees. No service charge will
be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

 

Each Holder of Series 2007-3 Notes, by acceptance of a Series 2007-3
Note, covenants and agrees that by accepting the benefits of the Indenture that
prior to the date that is one year and one day after the payment in full of the
latest maturing note issued under the Indenture, such Series 2007-3
Noteholder will not institute against, or join with any other Person in
instituting against, any Securitization Entity any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings, under
any federal or state bankruptcy or similar law; provided, however,
that nothing herein shall constitute a waiver of any right to indemnification,
reimbursement or other payment from the Securitization Entities pursuant to the
Indenture or any other Transaction Document.

 

It is the intent of the Co-Issuers and each Holder of Series 2007-3
Notes that, for federal, state and local income and franchise tax purposes
only, the Series 2007-3 Notes will evidence indebtedness of the Co-Issuers
secured by the Collateral. Each Holder of Series 2007-3 Notes, by the
acceptance of this Note, agrees to treat this Note (or beneficial interests
herein) for purposes of federal, state and local income or franchise taxes and
any other tax imposed on or measured by income, as indebtedness of the
Co-Issuers or, if any Co-Issuer is treated as a division of another entity,
such other entity.

 

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Co-Issuers and the rights of the Holders of Series 2007-3 Notes under the
Indenture at any time by the Co-Issuers with the consent of the Aggregate
Controlling Party or each Series Controlling Party (as applicable) and
without the consent of any Holders of Series 2007-3 Notes. The Indenture
also

 

A-1-9

 

contains provisions permitting the Aggregate
Controlling Party or each Series Controlling Party (as applicable) to
waive compliance by the Co-Issuers with certain provisions of the Indenture
without the consent of any Holders of Series 2007-3 Notes. Any such consent
or waiver of this Note (or any one or more predecessor Notes) shall be
conclusive and binding upon the Holder of this Note and all future Holders of
this Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note.

 

The term “Co-Issuer” as used in this Note includes any successor to the
Co-Issuers under the Indenture.

 

The Series 2007-3 Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations set
forth therein.

 

This Note and the Indenture shall be governed by the internal laws of
the State of New York without regard to choice of law rules (other than Section 5-1401
of the New York General Obligations Law).

 

No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Co-Issuers, which
is absolute and unconditional, to pay the principal of and interest on this
Note at the times, place and rate, and in the coin or currency herein
prescribed.

 

A-1-10

 

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of
assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

 

	
   

  
	
  (name and address of assignee)

  

 

 

the within  Note and all rights
thereunder, and hereby irrevocably constitutes and appoints
                                        ,
attorney, to transfer said Note on the books kept for registration thereof,
with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
  (1)

  
	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
							

 

(1)                                  NOTE:  The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note, without alteration, enlargement or any change whatsoever.

 

A-1-11

 

SCHEDULE OF EXCHANGES IN RULE 144A GLOBAL NOTE

 

The initial principal balance of this Rule 144A Global Note is
$[•]. The following exchanges of an interest in this Rule 144A
Global Note for an interest in a corresponding Temporary Regulation S Global
Note have been made:

 

	
  Date

  	
   

  	
  Amount of Increase (or

  Decrease) in the Principal

  Amount of this Rule 144A

  Global Note

  	
   

  	
  Remaining Principal Amount of

  this Rule 144A Global Note

  following the Increase or

  Decrease

  	
   

  	
  Signature of Authorized

  Officer of Indenture

  Trustee or Note Registrar

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-1-12

 

Exhibit A-2

Form of Series 2007-3

Temporary Regulation S Global Note

 

TEMPORARY REGULATION S GLOBAL NOTE

IHOP FRANCHISING, LLC

IHOP IP, LLC

SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”),
A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK 10004, OR A NOMINEE
THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. UNLESS THIS
NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE CO-ISSUERS OR
THE REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC, AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE
THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037 (THIS “NOTE”) HAS
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY
AUTHORITY OF ANY STATE OR OTHER RELEVANT JURISDICTION, AND NEITHER IHOP
FRANCHISING, LLC NOR IHOP IP, LLC (THE “CO-ISSUERS”) HAS BEEN REGISTERED UNDER
THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS
NOTE OR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (I) IN THE UNITED STATES TO EITHER AN INITIAL PURCHASER
OR A SUBSEQUENT TRANSFEREE WHO IS BOTH A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) AND A “QUALIFIED
PURCHASER” (WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT), ACTING FOR ITS
OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL
PURCHASER OR SUBSEQUENT TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH
OF WHICH IS BOTH A QUALIFIED INSTITUTIONAL BUYER AND A QUALIFIED PURCHASER, AND
NONE OF WHICH IS (1) A DEALER OF THE TYPE DESCRIBED IN PARAGRAPH (a)(1)(ii) OF
RULE 144A UNLESS IT OWNS AND INVESTS ON A DISCRETIONARY BASIS NOT LESS
THAN $25,000,000 IN SECURITIES OF ISSUERS THAT ARE NOT AFFILIATED TO IT, (2) A
PARTICIPANT-DIRECTED EMPLOYEE PLAN, SUCH AS A 401(k) PLAN, OR ANY

 

A-2-1

 

OTHER TYPE OF PLAN REFERRED TO IN PARAGRAPH (a)(1)(i)(D) OR
(a)(1)(i)(E) OF RULE 144A, OR A TRUST FUND REFERRED TO IN PARAGRAPH
(a)(1)(i)(F) OF RULE 144A THAT HOLDS THE ASSETS OF SUCH A PLAN,
UNLESS INVESTMENT DECISIONS WITH RESPECT TO THE PLAN ARE MADE SOLELY BY THE
FIDUCIARY, TRUSTEE OR SPONSOR OF SUCH PLAN, (3) FORMED OR CAPITALIZED FOR
THE SPECIFIC PURPOSE OF INVESTING IN THE ISSUER (EXCEPT WHERE EACH BENEFICIAL
OWNER IS A QUALIFIED PURCHASER), (4) A CORPORATION, PARTNERSHIP, COMMON
TRUST FUND, SPECIAL TRUST, PENSION FUND OR RETIREMENT PLAN IN WHICH THE
SHAREHOLDERS, EQUITY OWNERS, PARTNERS, BENEFICIARIES, BENEFICIAL OWNERS OR
PARTICIPANTS, AS APPLICABLE, MAY DESIGNATE THE PARTICULAR INVESTMENTS TO
BE MADE, (5) IF FORMED ON OR BEFORE APRIL 30, 1996, AN INVESTMENT
COMPANY THAT RELIES ON THE EXCLUSION FROM THE DEFINITION OF “INVESTMENT COMPANY”
PROVIDED BY SECTION 3(c)(7) OF THE INVESTMENT COMPANY ACT (OR A
FOREIGN INVESTMENT COMPANY UNDER SECTION 7(d) THEREOF RELYING ON SECTION 3(c)(7) WITH
RESPECT TO THOSE OF ITS HOLDERS THAT ARE U.S. PERSONS), UNLESS, WITH RESPECT TO
ITS TREATMENT AS A QUALIFIED PURCHASER, IT HAS, IN THE MANNER REQUIRED BY SECTION 2(a)(51)(C) OF
THE INVESTMENT COMPANY ACT AND THE RULES AND REGULATIONS THEREUNDER,
RECEIVED THE CONSENT OF ITS BENEFICIAL OWNERS THAT ACQUIRED THEIR INTERESTS ON
OR BEFORE APRIL 30, 1996 OR (6) AN ENTITY THAT, IMMEDIATELY SUBSEQUENT
TO ITS PURCHASE OR OTHER ACQUISITION OF A BENEFICIAL INTEREST IN THIS NOTE,
WILL HAVE INVESTED MORE THAN 40% OF ITS ASSETS IN BENEFICIAL INTERESTS IN THIS
NOTE AND/OR IN OTHER SECURITIES OF THE ISSUER (UNLESS ALL OF THE BENEFICIAL
OWNERS OF SUCH ENTITY’S SECURITIES ARE QUALIFIED PURCHASERS) TO WHOM NOTICE IS
GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
THE EXEMPTION FROM SECURITIES ACT REGISTRATION PROVIDED BY RULE 144A AND (II) OUTSIDE
THE UNITED STATES TO AN INITIAL PURCHASER OR A SUBSEQUENT TRANSFEREE WHO IS A
QUALIFIED PURCHASER AND NEITHER A “U.S. PERSON” AS DEFINED IN REGULATION S
UNDER THE SECURITIES ACT (“REGULATION S”) NOR A “U.S. RESIDENT” AS DEFINED FOR
PURPOSES OF THE INVESTMENT COMPANY ACT, ACTING FOR ITS OWN ACCOUNT OR ONE OR
MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL PURCHASER OR SUBSEQUENT
TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH OF WHICH IS A QUALIFIED
PURCHASER, AND NONE OF WHICH IS A U.S. PERSON NOR A U.S. RESIDENT, IN OFFSHORE
TRANSACTIONS IN RELIANCE ON REGULATION S, AND, IN EACH CASE, IN COMPLIANCE WITH
THE CERTIFICATIONS AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED
TO HEREIN AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR THE UNITED STATES
AND ANY OTHER RELEVANT JURISDICTION. THE INITIAL PURCHASER AND EACH SUBSEQUENT TRANSFEREE
TAKING DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE WILL BE DEEMED TO HAVE
MADE THE APPLICABLE REPRESENTATIONS AND AGREEMENTS REFERRED TO IN THE INDENTURE.
THE INITIAL PURCHASER AND EACH SUBSEQUENT TRANSFEREE TAKING DELIVERY OF THIS
NOTE OR AN INTEREST IN THIS NOTE IN THE FORM OF AN INTEREST IN A

 

A-2-2

 

REGULATION S GLOBAL NOTE RESTRICTED NOTE OR AN UNRESTRICTED NOTE WILL
BE REQUIRED TO DELIVER A TRANSFER CERTIFICATE IN THE FORM REQUIRED BY THE
INDENTURE AND WILL BE REQUIRED TO MAKE THE APPLICABLE REPRESENTATIONS AND
AGREEMENTS REFERRED TO IN THE INDENTURE.

 

ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING WILL BE OF NO
FORCE AND EFFECT AND WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER
ANY RIGHTS TO THE INITIAL PURCHASER OR ANY SUBSEQUENT TRANSFEREE,
NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE CO-ISSUERS, THE TRUSTEE
OR ANY INTERMEDIARY.

 

THE CO-ISSUERS MAY REQUIRE ANY HOLDER OF THIS NOTE WHO IS
DETERMINED NOT TO HAVE BEEN BOTH A QUALIFIED INSTITUTIONAL BUYER AND A
QUALIFIED PURCHASER AT THE TIME OF ACQUISITION OF THIS NOTE TO SELL THIS NOTE
TO A PERSON WHO IS (I) BOTH A QUALIFIED INSTITUTIONAL BUYER AND A
QUALIFIED PURCHASER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A,
(II) A QUALIFIED PURCHASER IN A TRANSFER PURSUANT TO RULE 144 UNDER
THE SECURITIES ACT OR (III) A QUALIFIED PURCHASER AND NEITHER A U.S.
PERSON NOR A U.S. RESIDENT IN A TRANSACTION MEETING THE REQUIREMENTS OF
REGULATION S.

 

UNTIL 40 DAYS AFTER THE ORIGINAL ISSUE DATE OF THE NOTES (THE “RESTRICTED
PERIOD”) IN CONNECTION WITH THE OFFERING OF THE NOTES IN THE UNITED STATES FROM
OUTSIDE OF THE UNITED STATES, THE SALE, PLEDGE OR TRANSFER OF THIS NOTE IS
SUBJECT TO CERTAIN CONDITIONS AND RESTRICTIONS. THE HOLDER HEREOF, BY
PURCHASING OR OTHERWISE ACQUIRING THIS NOTE, ACKNOWLEDGES THAT SUCH HOLDER IS A
QUALIFIED PURCHASER, AND THAT THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE CO-ISSUERS THAT THIS NOTE MAY BE
TRANSFERRED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY TO A QUALIFIED
PURCHASER AND IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS
OF THE STATES, TERRITORIES AND POSSESSIONS OF THE UNITED STATES GOVERNING THE
OFFER AND SALE OF SECURITIES, AND PRIOR TO THE EXPIRATION OF THE RESTRICTED
PERIOD, ONLY (I) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION
S UNDER THE SECURITIES ACT OR (II) PURSUANT TO AND IN ACCORDANCE WITH RULE 144A
UNDER THE SECURITIES ACT.

 

A-2-3

 

TEMPORARY REGULATION S GLOBAL NOTE

SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037

 

	
  No. TR-1

  	
   

  	
  up to
  $245,000,000

  

 

SEE REVERSE FOR CERTAIN CONDITIONS

 

CUSIP Number: [•]

ISIN Number:  [•]

 

IHOP FRANCHISING, LLC,

IHOP IP, LLC

 

SERIES 2007-3 FIXED RATE TERM NOTES

 

IHOP FRANCHISING, LLC, a limited liability company formed under the
laws of the State of Delaware, and IHOP IP, LLC, a limited liability company formed
under the laws of the State of Delaware (herein referred to, collectively, as
the “Co-Issuers”), for value received, hereby jointly and severally
promise to pay to CEDE & CO. or registered assigns, up to the
principal sum of TWO HUNDRED TWENTY FIVE MILLION DOLLARS ($245,000,000) as
provided below and in the Indenture referred to herein. Payments of principal
shall be payable in the amounts and at the times set forth in the Indenture
described herein; provided, however, that the entire unpaid
principal amount of this Note shall be due on the Payment Date occurring in December 2037
(the “Series 2007-3
Legal Final Maturity Date”). The
Co-Issuers will pay interest on this Series 2007-3 Temporary Regulation S
Global Note (this “Note”) at the Series 2007-3 Note Rate for each
Interest Accrual Period in accordance with the terms of the Indenture. Such
interest will be payable in arrears on each Payment Date, which will be on the
20th day (or, if such 20th day is not a Business Day, the next succeeding
Business Day) of each calendar month, commencing January 22, 2008 (each, a
“Payment Date”). Such amounts due on this Note will be payable in
arrears on each Payment Date, which will be on the 20th day (or, if such 20th
day is not a Business Day, the next succeeding Business Day) of each calendar
month, commencing January 22, 2007 (each, a “Payment Date”).
Such amounts due on this Note will accrue for each Payment Date with respect to
(i) initially, the period from and including November 29, 2007 to but
excluding January 22, 2008 and (ii) thereafter, commencing on and
including the 20th day of each month and ending on but excluding the
20th day of the next succeeding month (each, an “Interest Accrual Period”). Such amounts due on this Note with respect to
the Note (and interest on any defaulted payments of amounts due on this Note at
the same rate) will be computed in accordance with the Indenture. In addition,
under the circumstances set forth in the Indenture, the Co-Issuers shall also
pay contingent additional interest on this Note in amounts equal to Series 2007-3
Monthly Extension Period Contingent Additional Interest Amount or the Series 2007-3
Monthly Post-ARD Contingent Additional Interest Amount, as applicable, which
shall be computed and shall be payable in the amounts and at the times set
forth in the Indenture.

 

The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

 

A-2-4

 

private debts. All payments made by the
Co-Issuers with respect to this Note shall be applied as provided in the
Indenture.

 

This Note is subject to mandatory and optional redemption as set forth
in the Indenture.

 

Interests in this Note are exchangeable or transferable in whole or in part for
interests in a Regulation S Global Note; provided that such transfer or
exchange complies with the applicable provisions of the Indenture relating to
the transfer of the Notes. Interests in this Note in certain circumstances may also
be exchangeable or transferable in whole but not in part for duly executed
and issued registered Definitive Notes; provided that such transfer or
exchange complies with Article II of the Base Indenture.

 

This Temporary Regulation S Global Note may be surrendered by the
Note Registrar, as custodian for DTC, to the Trustee to be exchanged, in whole
or from time to time in part, for a Regulation S Global Note of the same Class 90
days after the later of the completion of the Offering and the Closing Date,
subject to the terms and conditions set forth in the Indenture. Upon any such
exchange of a beneficial interest in this Temporary Regulation S Global Note
for an interest in a Regulation S Global Note in accordance with the Indenture,
this Temporary Regulation S Global Note shall be endorsed to reflect the change
of the principal amount evidenced hereby.

 

Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note. Although a summary of certain provisions of the
Indenture is set forth below and on the reverse hereof and made a part hereof,
this Note does not purport to summarize the Indenture and reference is made to
the Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Co-Issuers and the Indenture Trustee. A copy of the Indenture
may be requested from the Indenture Trustee by writing to the Indenture
Trustee at: Wells Fargo Bank, National Association, Sixth Street and Marquette
Avenue, MAC N9311-161, Minneapolis, MN 55479, Attn: Corporate Trust
Services/Asset Backed Administration. To the extent not defined herein, the
capitalized terms used herein have the meanings ascribed to them in the
Indenture.

 

Subject to the next following paragraph, the Co-Issuers hereby certify
and declare that all acts, conditions and things required to be done and
performed and to have happened prior to the creation of this Note and to
constitute it as the valid obligation of the Co-Issuers enforceable in
accordance with its terms, have been done and performed and have happened in
due compliance with all applicable laws and in accordance with the terms of the
Indenture.

 

Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

 

[Remainder of page intentionally left blank]

 

A-2-5

 

IN WITNESS WHEREOF, each of the Co-Issuers has caused this instrument
to be signed, manually or in facsimile, by its Authorized Officer.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP
  FRANCHISING, LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP IP,
  LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2-6

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Series 2007-3 Notes issued under the
within-mentioned Indenture.

 

 

	
   

  	
  WELLS FARGO
  BANK, NATIONAL

  ASSOCIATION, as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

A-2-7

 

[REVERSE OF NOTE]

 

This Note is one of a duly authorized issue of Series 2007-3 Fixed
Rate Term Notes of the Co-Issuers designated as their Series 2007-3 Fixed
Rate Term Notes (herein called the “Series 2007-3 Notes”), all issued under (i) a Base Indenture,
dated as of March 16, 2007 (such Base Indenture, as amended, supplemented
or modified, is herein called the “Base Indenture”),
among the Co-Issuers and Wells Fargo Bank, National Association, as indenture
trustee (the “Indenture
Trustee”, which term includes any
successor Indenture Trustee under the Base Indenture), and (ii) a Series 2007-3
Fixed Rate Term Note Series Supplement to the Base Indenture, dated as of November 29,
2007 (such series 2007-3 Fixed Rate Term Note Series Supplement, as
amended, supplemented or modified from time to time, is herein called the “Series 2007-3 Series Supplement”), among the Co-Issuers and Indenture Trustee. The
Base Indenture, Series 2007-3 Series Supplement and such other Series Supplement
or Supplemental Indenture as may be executed from time to time are
referred to herein as the “Indenture”.
The Series 2007-3 Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented,
modified or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented, modified or amended.

 

The Series 2007-3 Notes are and will be secured by the Collateral
pledged as security therefor as provided in the Indenture.

 

The Notes will be issued in minimum denominations of $200,000 and
integral multiples of $1,000 in excess thereof.

 

As provided for in the Indenture, the Series 2007-3 Notes may be
redeemed, in whole or in part, at the option of the Co-Issuers. In addition,
the Series 2007-3 Notes are subject to mandatory redemption as provided
for in the Indenture. The Co-Issuers will be obligated to pay the Optional
Redemption Amount relating to the Series 2007-3 Notes in connection with
an Optional Redemption of any Series 2007-3 Notes as described in the
Indenture. As described above, the entire unpaid principal amount of this Note
shall be due and payable on the Series 2007-3 Legal Final Maturity Date.
All payments of principal of the Series 2007-3 Notes will be made pro
rata to the Holders of Series 2007-3 Notes entitled thereto.

 

Principal of and interest on this Note which is payable on a Payment
Date or on any date on which payments are permitted to be made as provided for
in the Indenture shall be paid to the Person in whose name this Note (or one or
more predecessor Notes) is registered at the close of business on the
applicable Record Date.

 

Interest and contingent additional interest, if any, will each accrue
on the Series 2007-3 Notes at the rates set forth in the Indenture. The
interest and contingent additional interest, if any, will be computed on the
basis set forth in the Indenture. The amount of interest payable on the Series 2007-3
Notes on each Payment Date will be calculated as set forth in the Indenture.

 

Payments of principal of and interest on this Note are subordinated to
the payment of certain other amounts in accordance with the Indenture.

 

A-2-8

 

If an Event of Default shall occur and be continuing, this Note may become
or be declared due and payable in the manner and with the effect provided in
the Indenture.

 

Amounts payable in respect of this Note shall be made by wire transfer
of immediately available funds to the account designated by DTC or its nominee.

 

As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the office
or agency designated by the Co-Issuers pursuant to the Indenture, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory
to the Indenture Trustee duly executed by, the Series 2007-3 Noteholder
hereof or his attorney duly authorized in writing, with such signature
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended, and accompanied by such other
documents as the Indenture Trustee and the Note Registrar may require and
as may be required by the Indenture, and thereupon one or more new Series 2007-3
Notes of authorized denominations in the same aggregate principal amount will
be issued to the designated transferee or transferees. No service charge will
be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

 

Each Holder of Series 2007-3 Notes, by acceptance of a Series 2007-3
Note, covenants and agrees that by accepting the benefits of the Indenture that
prior to the date that is one year and one day after the payment in full of the
latest maturing note issued under the Indenture, such Series 2007-3
Noteholder will not institute against, or join with any other Person in
instituting against, any Securitization Entity any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings, under
any federal or state bankruptcy or similar law; provided, however,
that nothing herein shall constitute a waiver of any right to indemnification,
reimbursement or other payment from the Securitization Entities pursuant to the
Indenture or any other Transaction Document.

 

It is the intent of the Co-Issuers and each Holder of Series 2007-3
Notes that, for federal, state and local income and franchise tax purposes
only, the Series 2007-3 Notes will evidence indebtedness of the Co-Issuers
secured by the Collateral. Each Holder of Series 2007-3 Notes, by the
acceptance of this Note, agrees to treat this Note (or beneficial interests
herein) for purposes of federal, state and local income or franchise taxes and
any other tax imposed on or measured by income, as indebtedness of the
Co-Issuers or, if any Co-Issuer is treated as a division of another entity,
such other entity.

 

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Co-Issuers and the rights of the Holders of Series 2007-3 Notes under the
Indenture at any time by the Co-Issuers with the consent of the Aggregate
Controlling Party or each Series Controlling Party (as applicable) and
without the consent of any Holders of Series 2007-3 Notes. The Indenture
also

 

A-2-9

 

contains provisions permitting the Aggregate
Controlling Party or each Series Controlling Party (as applicable), to
waive compliance by the Co-Issuers with certain provisions of the Indenture
without the consent of any Holders of Series 2007-3 Notes. Any such
consent or waiver of this Note (or any one or more predecessor Notes) shall be
conclusive and binding upon the Holder of this Note and all future Holders of
this Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note.

 

The term “Co-Issuer” as used in this Note includes any successor to the
Co-Issuers under the Indenture.

 

The Series 2007-3 Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations set
forth therein.

 

This Note and the Indenture shall be governed by the internal laws of
the State of New York without regard to choice of law rules (other than Section 5-1401
of the New York General Obligations Law).

 

No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Co-Issuers, which
is absolute and unconditional, to pay the principal of and interest on this
Note at the times, place and rate, and in the coin or currency herein
prescribed.

 

A-2-10

 

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of
assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

	
   

  
	
   

  	
  (name and address of assignee)

  

 

the within  Note and all rights
thereunder, and hereby irrevocably constitutes and appoints
                                        ,
attorney, to transfer said Note on the books kept for registration thereof,
with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
  (1)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Signature
  Guaranteed:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

 

(1)           NOTE:  The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note, without alteration, enlargement or any change whatsoever.

 

A-2-11

 

SCHEDULE OF EXCHANGES IN TEMPORARY REGULATION S GLOBAL NOTE

 

The initial principal balance of this Series 2007-3 Temporary
Global Note is $[•]. The following exchanges of an interest in this Series 2007-3
Temporary Global Note for an interest in a corresponding Series 2007-3
Regulation S Global Note have been made:

 

	
  Date

  	
   

  	
  Amount of Increase (or

  Decrease) in the Principal

  Amount of Temporary

  Regulation S Global Note

  	
   

  	
  Remaining Principal Amount of

  this Temporary Regulation S

  Global Note following the Increase

  or Decrease

  	
   

  	
  Signature of Authorized

  Officer of Indenture

  Trustee or Note Registrar

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-2-12

 

Exhibit A-3

Form of Series 2007-3

Regulation S Global Note

 

REGULATION S GLOBAL NOTE

IHOP FRANCHISING, LLC

IHOP IP, LLC

SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK
10004, OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN
PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR
IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE
CO-ISSUERS OR THE REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037 (THIS “NOTE”) HAS
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY
AUTHORITY OF ANY STATE OR OTHER RELEVANT JURISDICTION, AND NEITHER IHOP
FRANCHISING, LLC NOR IHOP IP, LLC (THE “CO-ISSUERS”) HAS BEEN REGISTERED UNDER
THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS
NOTE OR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (I) IN THE UNITED STATES TO EITHER AN INITIAL PURCHASER
OR A SUBSEQUENT TRANSFEREE WHO IS BOTH A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) AND A “QUALIFIED
PURCHASER” (WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT), ACTING FOR ITS
OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL
PURCHASER OR SUBSEQUENT TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH
OF WHICH IS BOTH A QUALIFIED INSTITUTIONAL BUYER AND A QUALIFIED PURCHASER, AND
NONE OF WHICH IS (1) A DEALER OF THE TYPE DESCRIBED IN PARAGRAPH (a)(1)(ii) OF
RULE 144A UNLESS IT OWNS AND INVESTS ON A DISCRETIONARY BASIS NOT LESS
THAN $25,000,000 IN SECURITIES OF ISSUERS THAT ARE NOT AFFILIATED TO IT, (2) A
PARTICIPANT-DIRECTED EMPLOYEE PLAN, SUCH AS A 401(k) PLAN, OR ANY

 

A-3-1

 

OTHER TYPE OF PLAN REFERRED TO IN PARAGRAPH (a)(1)(i)(D) OR
(a)(1)(i)(E) OF RULE 144A, OR A TRUST FUND REFERRED TO IN PARAGRAPH (a)(1)(i)(F) OF
RULE 144A THAT HOLDS THE ASSETS OF SUCH A PLAN, UNLESS INVESTMENT
DECISIONS WITH RESPECT TO THE PLAN ARE MADE SOLELY BY THE FIDUCIARY, TRUSTEE OR
SPONSOR OF SUCH PLAN, (3) FORMED OR CAPITALIZED FOR THE SPECIFIC PURPOSE
OF INVESTING IN THE ISSUER (EXCEPT WHERE EACH BENEFICIAL OWNER IS A QUALIFIED
PURCHASER), (4) A CORPORATION, PARTNERSHIP, COMMON TRUST FUND, SPECIAL
TRUST, PENSION FUND OR RETIREMENT PLAN IN WHICH THE SHAREHOLDERS, EQUITY
OWNERS, PARTNERS, BENEFICIARIES, BENEFICIAL OWNERS OR PARTICIPANTS, AS
APPLICABLE, MAY DESIGNATE THE PARTICULAR INVESTMENTS TO BE MADE, (5) IF
FORMED ON OR BEFORE APRIL 30, 1996, AN INVESTMENT COMPANY THAT RELIES ON
THE EXCLUSION FROM THE DEFINITION OF “INVESTMENT COMPANY” PROVIDED BY SECTION 3(c)(1) OR
SECTION 3(c)(7) OF THE INVESTMENT COMPANY ACT (OR A FOREIGN
INVESTMENT COMPANY UNDER SECTION 7(d) THEREOF RELYING ON SECTION 3(c)(1) OR
SECTION 3(c)(7) WITH RESPECT TO THOSE OF ITS HOLDERS THAT ARE U.S.
PERSONS), UNLESS, WITH RESPECT TO ITS TREATMENT AS A QUALIFIED PURCHASER, IT
HAS, IN THE MANNER REQUIRED BY SECTION 2(a)(51)(C) OF THE INVESTMENT
COMPANY ACT AND THE RULES AND REGULATIONS THEREUNDER, RECEIVED THE CONSENT
OF ITS BENEFICIAL OWNERS THAT ACQUIRED THEIR INTERESTS ON OR BEFORE APRIL 30,
1996 OR (6) AN ENTITY THAT, IMMEDIATELY SUBSEQUENT TO ITS PURCHASE OR
OTHER ACQUISITION OF A BENEFICIAL INTEREST IN THIS NOTE, WILL HAVE INVESTED
MORE THAN 40% OF ITS ASSETS IN BENEFICIAL INTERESTS IN THIS NOTE AND/OR IN
OTHER SECURITIES OF THE ISSUER (UNLESS ALL OF THE BENEFICIAL OWNERS OF SUCH
ENTITY’S SECURITIES ARE QUALIFIED PURCHASERS) TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON THE EXEMPTION
FROM SECURITIES ACT REGISTRATION PROVIDED BY RULE 144A AND (II) OUTSIDE
THE UNITED STATES TO AN INITIAL PURCHASER OR A SUBSEQUENT TRANSFEREE WHO IS A
QUALIFIED PURCHASER AND NEITHER A “U.S. PERSON” AS DEFINED IN REGULATION S
UNDER THE SECURITIES ACT (“REGULATION S”) NOR A “U.S. RESIDENT” AS DEFINED FOR
PURPOSES OF THE INVESTMENT COMPANY ACT, ACTING FOR ITS OWN ACCOUNT OR ONE OR
MORE ACCOUNTS WITH RESPECT TO WHICH SUCH INITIAL PURCHASER OR SUBSEQUENT
TRANSFEREE EXERCISES SOLE INVESTMENT DISCRETION, EACH OF WHICH IS A QUALIFIED
PURCHASER, AND NONE OF WHICH IS A U.S. PERSON NOR A U.S. RESIDENT, IN OFFSHORE
TRANSACTIONS IN RELIANCE ON REGULATION S, AND, IN EACH CASE, IN COMPLIANCE WITH
THE CERTIFICATIONS AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED
TO HEREIN AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR THE UNITED STATES
AND ANY OTHER RELEVANT JURISDICTION. THE INITIAL PURCHASER AND EACH SUBSEQUENT
TRANSFEREE TAKING DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE WILL BE
DEEMED TO HAVE MADE THE APPLICABLE REPRESENTATIONS AND AGREEMENTS REFERRED TO
IN THE INDENTURE. THE INITIAL PURCHASER AND EACH SUBSEQUENT TRANSFEREE TAKING
DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE IN THE FORM OF AN
INTEREST IN A

 

A-3-2

 

REGULATION S GLOBAL NOTE RESTRICTED NOTE OR AN UNRESTRICTED NOTE WILL
BE REQUIRED TO DELIVER A TRANSFER CERTIFICATE IN THE FORM REQUIRED BY THE
INDENTURE AND WILL BE REQUIRED TO MAKE THE APPLICABLE REPRESENTATIONS AND
AGREEMENTS REFERRED TO IN THE INDENTURE.

 

ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING WILL BE OF NO
FORCE AND EFFECT AND WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER
ANY RIGHTS TO THE INITIAL PURCHASER OR ANY SUBSEQUENT TRANSFEREE,
NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE CO-ISSUERS, THE TRUSTEE
OR ANY INTERMEDIARY.

 

THE CO-ISSUERS MAY REQUIRE ANY HOLDER OF THIS NOTE WHO IS
DETERMINED NOT TO HAVE BEEN BOTH A QUALIFIED INSTITUTIONAL BUYER AND A
QUALIFIED PURCHASER AT THE TIME OF ACQUISITION OF THIS NOTE TO SELL THIS NOTE
TO A PERSON WHO IS (I) BOTH A QUALIFIED INSTITUTIONAL BUYER AND A
QUALIFIED PURCHASER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A,
(II) A QUALIFIED PURCHASER IN A TRANSFER PURSUANT TO RULE 144 UNDER
THE SECURITIES ACT OR (III) A QUALIFIED PURCHASER AND NEITHER A U.S.
PERSON NOR A U.S. RESIDENT IN A TRANSACTION MEETING THE REQUIREMENTS OF
REGULATION S.

 

UNTIL 40 DAYS AFTER THE ORIGINAL ISSUE DATE OF THE NOTES (THE “RESTRICTED
PERIOD”) IN CONNECTION WITH THE OFFERING OF THE NOTES IN THE UNITED STATES FROM
OUTSIDE OF THE UNITED STATES, THE SALE, PLEDGE OR TRANSFER OF THIS NOTE IS
SUBJECT TO CERTAIN CONDITIONS AND RESTRICTIONS. THE HOLDER HEREOF, BY
PURCHASING OR OTHERWISE ACQUIRING THIS NOTE, ACKNOWLEDGES THAT SUCH HOLDER IS A
QUALIFIED PURCHASER, AND THAT THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE CO-ISSUERS THAT THIS NOTE MAY BE
TRANSFERRED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY TO A QUALIFIED
PURCHASER AND IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS
OF THE STATES, TERRITORIES AND POSSESSIONS OF THE UNITED STATES GOVERNING THE
OFFER AND SALE OF SECURITIES, AND PRIOR TO THE EXPIRATION OF THE RESTRICTED
PERIOD, ONLY (I) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION
S UNDER THE SECURITIES ACT OR (II) PURSUANT TO AND IN ACCORDANCE WITH RULE 144A
UNDER THE SECURITIES ACT.

 

A-3-3

 

REGULATION S GLOBAL NOTE

SERIES 2007-3 FIXED RATE TERM NOTE DUE 2037

 

	
  No. S-1

  	
   

  	
  up to
  $245,000,000

  

 

SEE REVERSE FOR CERTAIN CONDITIONS

 

CUSIP Number: [•]

ISIN Number: [•]

 

IHOP FRANCHISING, LLC,

IHOP IP, LLC

 

SERIES 2007-3 FIXED RATE TERM NOTES

 

IHOP FRANCHISING, LLC, a limited liability company formed under the
laws of the State of Delaware, and IHOP IP, LLC, a limited liability company
formed under the laws of the State of Delaware (herein referred to,
collectively, as the “Co-Issuers”), for value received, hereby jointly and severally
promise to pay to CEDE & CO. or registered assigns, up to the
principal sum of TWO HUNDRED TWENTY FIVE MILLION DOLLARS ($245,000,000) as
provided below and in the Indenture referred to herein. Payments of principal
shall be payable in the amounts and at the times set forth in the Indenture
described herein; provided, however, that the entire unpaid
principal amount of this Note shall be due on the Payment Date occurring in December 2037
(the “Series 2007-3
Legal Final Maturity Date”). The
Co-Issuers will pay interest on this Global Series 2007-3 Fixed Rate Term
Regulation S Global Note (this “Note”) at the Series 2007-3
Note Rate for each Interest Accrual Period in accordance with the terms of the
Indenture. Such interest will be payable in arrears on each Payment Date, which
will be on the 20th day (or, if such 20th day is not a Business Day, the next
succeeding Business Day) of each calendar month, commencing January 22,
2007 (each, a “Payment
Date”). Such amounts due on this
Note will be payable in arrears on each Payment Date, which will be on the 20th
day (or, if such 20th day is not a Business Day, the next succeeding Business
Day) of each calendar month, commencing January 22, 2008 (each, a “Payment Date”). Such amounts due on this Note will accrue for
each Payment Date with respect to (i) initially, the period from and
including November 29, 2007 to but excluding January 22, 2008 and (ii) thereafter,
commencing on and including the 20th day of each month and ending on
but excluding the 20th day of the next succeeding month (each, an “Interest Accrual Period”). Such amounts due on this Note with respect to
the Note (and interest on any defaulted payments of amounts due on this Note at
the same rate) will be computed in accordance with the Indenture. In addition,
under the circumstances set forth in the Indenture, the Co-Issuers shall also
pay contingent additional interest on this Note in amounts equal to Series 2007-3
Monthly Extension Period Contingent Additional Interest Amount or the Series 2007-3
Monthly Post-ARD Contingent Additional Interest Amount, as applicable, which
shall be computed and shall be payable in the amounts and at the times set
forth in the Indenture.

 

The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and

 

A-3-4

 

private debts. All payments made by the
Co-Issuers with respect to this Note shall be applied as provided in the
Indenture.

 

This Note is subject to mandatory and optional redemption as set forth
in the Indenture.

 

Interests in this Note are exchangeable or transferable in whole or in part for
interests in a Rule 144A Global Note; provided that such transfer
or exchange complies with the applicable provisions of the Indenture relating
to the transfer of the Notes. Interests in this Note in certain circumstances may also
be exchangeable or transferable in whole but not in part for duly executed
and issued registered Definitive Notes; provided that such transfer or
exchange complies with Article II of the Base Indenture.

 

Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note. Although a summary of certain provisions of the
Indenture is set forth below and on the reverse hereof and made a part hereof,
this Note does not purport to summarize the Indenture and reference is made to
the Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Co-Issuers and the Indenture Trustee. A copy of the Indenture
may be requested from the Indenture Trustee by writing to the Indenture
Trustee at: Wells Fargo Bank, National Association, Sixth Street and Marquette
Avenue, MAC N9311-161, Minneapolis, MN 55479, Attn: Corporate Trust
Services/Asset Backed Administration. To the extent not defined herein, the
capitalized terms used herein have the meanings ascribed to them in the
Indenture.

 

Subject to the next following paragraph, the Co-Issuers hereby certify
and declare that all acts, conditions and things required to be done and
performed and to have happened prior to the creation of this Note and to
constitute it as the valid obligation of the Co-Issuers enforceable in
accordance with its terms, have been done and performed and have happened in
due compliance with all applicable laws and in accordance with the terms of the
Indenture.

 

Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

 

[Remainder of page intentionally left blank]

 

A-3-5

 

IN WITNESS WHEREOF, each of the Co-Issuers has caused this instrument
to be signed, manually or in facsimile, by its Authorized Officer.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP
  FRANCHISING, LLC as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IHOP
  IP,  LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3-6

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Series 2007-3 Notes issued under the
within-mentioned Indenture.

 

 

	
   

  	
  WELLS FARGO
  BANK, NATIONAL

  ASSOCIATION, as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

A-3-7

 

[REVERSE OF NOTE]

 

This Note is one of a duly authorized issue of Series 2007-3 Fixed
Rate Term Notes of the Co-Issuers designated as their Series 2007-3 Fixed
Rate Term Notes (herein called the “Series 2007-3 Notes”), all issued under (i) a Base Indenture,
dated as of March 16, 2007 (such Base Indenture, as amended, supplemented
or modified, is herein called the “Base Indenture”),
among the Co-Issuers and Wells Fargo Bank, National Association, as indenture trustee
(the “Indenture
Trustee”, which term includes any
successor Indenture Trustee under the Base Indenture), and (ii) a Series 2007-3
Fixed Rate Term Note Series Supplement to the Base Indenture, dated as of November 29,
2007 (such series 2007-3 Fixed Rate Term Note Series Supplement, as
amended, supplemented or modified from time to time, is herein called the “Series 2007-3 Series Supplement”), among the Co-Issuers and Indenture Trustee. The
Base Indenture, Series 2007-3 Series Supplement and such other Series Supplement
or Supplemental Indenture as may be executed from time to time are
referred to herein as the “Indenture”.
The Series 2007-3 Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented,
modified or amended, shall have the meanings assigned to them in or pursuant to
the Indenture, as so supplemented, modified or amended.

 

The Series 2007-3 Notes are and will be secured by the Collateral
pledged as security therefor as provided in the Indenture.

 

The Notes will be issued in minimum denominations of $200,000 and
integral multiples of $1,000 in excess thereof.

 

As provided for in the Indenture, the Series 2007-3 Notes may be
redeemed, in whole or in part, at the option of the Co-Issuers. In addition,
the Series 2007-3 Notes are subject to mandatory redemption as provided
for in the Indenture. The Co-Issuers will be obligated to pay the Optional
Redemption Amount relating to the Series 2007-3 Notes in connection with
an Optional Redemption of any Series 2007-3 Notes as described in the
Indenture. As described above, the entire unpaid principal amount of this Note
shall be due and payable on the Series 2007-3 Legal Final Maturity Date.
All payments of principal of the Series 2007-3 Notes will be made pro
rata to the Holders of Series 2007-3 Notes entitled thereto.

 

Principal of and interest on this Note which is payable on a Payment
Date or on any date on which payments are permitted to be made as provided for
in the Indenture shall be paid to the Person in whose name this Note (or one or
more predecessor Notes) is registered at the close of business on the
applicable Record Date.

 

Interest and contingent additional interest, if any, will each accrue
on the Series 2007-3 Notes at the rates set forth in the Indenture. The
interest and contingent additional interest, if any, will be computed on the
basis set forth in the Indenture. The amount of interest payable on the Series 2007-3
Notes on each Payment Date will be calculated as set forth in the Indenture.

 

Payments of principal of and interest on this Note are subordinated to
the payment of certain other amounts in accordance with the Indenture.

 

A-3-8

 

If an Event of Default shall occur and be continuing, this Note may become
or be declared due and payable in the manner and with the effect provided in
the Indenture.

 

Amounts payable in respect of this Note shall be made by wire transfer
of immediately available funds to the account designated by DTC or its nominee.

 

As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the office
or agency designated by the Co-Issuers pursuant to the Indenture, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory
to the Indenture Trustee duly executed by, the Series 2007-3 Noteholder
hereof or his attorney duly authorized in writing, with such signature
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended, and accompanied by such other
documents as the Indenture Trustee and the Note Registrar may require and
as may be required by the Indenture, and thereupon one or more new Series 2007-3
Notes of authorized denominations in the same aggregate principal amount will
be issued to the designated transferee or transferees. No service charge will
be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

 

Each Holder of Series 2007-3 Notes, by acceptance of a Series 2007-3
Note, covenants and agrees that by accepting the benefits of the Indenture that
prior to the date that is one year and one day after the payment in full of the
latest maturing note issued under the Indenture, such Series 2007-3
Noteholder will not institute against, or join with any other Person in
instituting against, any Securitization Entity any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings, under
any federal or state bankruptcy or similar law; provided, however,
that nothing herein shall constitute a waiver of any right to indemnification,
reimbursement or other payment from the Securitization Entities pursuant to the
Indenture or any other Transaction Document.

 

It is the intent of the Co-Issuers and each Holder of Series 2007-3
Notes that, for federal, state and local income and franchise tax purposes
only, the Series 2007-3 Notes will evidence indebtedness of the Co-Issuers
secured by the Collateral. Each Holder of Series 2007-3 Notes, by the
acceptance of this Note, agrees to treat this Note (or beneficial interests
herein) for purposes of federal, state and local income or franchise taxes and
any other tax imposed on or measured by income, as indebtedness of the
Co-Issuers or, if any Co-Issuer is treated as a division of another entity,
such other entity.

 

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Co-Issuers and the rights of the Holders of Series 2007-3 Notes under the
Indenture at any time by the Co-Issuers with the consent of the Aggregate
Controlling Party or each Series Controlling Party (as applicable) and
without the consent of any Holders of Series 2007-3 Notes. The Indenture
also

 

A-3-9

 

contains provisions permitting the Aggregate
Controlling Party or each Series Controlling Party (as applicable), to
waive compliance by the Co-Issuers with certain provisions of the Indenture
without the consent of any Holders of Series 2007-3 Notes. Any such
consent or waiver of this Note (or any one or more predecessor Notes) shall be
conclusive and binding upon the Holder of this Note and all future Holders of
this Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note.

 

The term “Co-Issuer” as used in this Note includes any successor to the
Co-Issuers under the Indenture.

 

The Series 2007-3 Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations set
forth therein.

 

This Note and the Indenture shall be governed by the internal laws of
the State of New York without regard to choice of law rules (other than Section 5-1401
of the New York General Obligations Law).

 

No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Co-Issuers, which
is absolute and unconditional, to pay the principal of and interest on this
Note at the times, place and rate, and in the coin or currency herein
prescribed.

 

A-3-10

 

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of
assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

	
   

  
	
  (name and address of assignee)

  

 

the within  Note and all rights
thereunder, and hereby irrevocably constitutes and appoints
                                        ,
attorney, to transfer said Note on the books kept for registration thereof,
with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
  (1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

(1)                                 NOTE:  The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note, without alteration, enlargement or any change whatsoever.

 

A-3-11

 

SCHEDULE OF EXCHANGES IN SERIES 2007-3 REGULATION S GLOBAL
NOTE

 

The initial principal balance of this Series 2007-3 Regulation S
Global Note is $[•]. The following exchanges of an interest in this Series 2007-3
Global Note for an interest in a corresponding Series 2007-3 Rule 144A
Global Note have been made:

 

	
  Date

  	
   

  	
  Amount of Increase (or

  Decrease) in the Principal

  Amount of this Regulation S

  Global Note

  	
   

  	
  Remaining Principal Amount of

  this Regulation S Global Note

  following the Increase or
  Decrease

  	
   

  	
  Signature of Authorized

  Officer of Indenture

  Trustee or Note Registrar

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]