Document:

Exhibit 10.13  

        [IHOP LOGO]  

 Executive Incentive Plan  

 2004  

CONFIDENTIAL  

The information contained within this document is highly sensitive and confidential and must be handled with utmost discretion and
integrity.

 

Effective Date  

        The Executive Incentive Plan is effective January 1, 2004 and supersedes all previously implemented plans. 

Modification of the Plan  

        IHOP Corp. and its subsidiaries reserve the right to modify, terminate or make exceptions to the Executive Incentive Plan ("Plan") at any time without prior
notice. The Plan will be reviewed on an annual basis allowing for updates or revisions to be considered. The Plan and this Plan Document do not constitute or imply an employment contract, and
participants accrue no interest, right or any benefit in the Plan, except as specifically set forth in this document. 

Eligibility  

        The Plan includes the Chief Executive Officer & President, other Chief Officers, Vice Presidents/Executive Officers, and Vice
Presidents/Non-executive Officers. Participants must be actively employed with IHOP Corp. and its subsidiaries through the end of the Plan Year. The Company's Plan Year is based on IHOP's
fiscal year. The last day worked is the last day an employee is considered active. In the case of termination, vacation or other payments can not be used to extend the last day worked. 

New Hires/Re-Hires  

        Incentive eligibility begins with the first complete calendar month worked in an eligible position. 

        For
participant's that begin work with IHOP Corp. during the Plan Year, the incentive will be paid on a prorated basis. The prorated percentage is determined based on when the employee
begins work. If the employee begins work during the first full workweek of the month, they will be credited for a whole month worked. However, if the employee begins work after the first full workweek
of the month, he/she will not be entitled to receive an incentive for that month. 

        Employees
hired on or after October 1, 2004 are not be eligible for a bonus payout. 

Promotions  

        Promotion from a non-eligible position to an eligible position:    Any employee promoted from a
non-eligible position to an eligible position during the incentive period will have an incentive based on the number of whole months worked in the incentive period. If the participant is
promoted on the first calendar or workday of the month, credit will be for a full month worked. The effective date of the promotion will be used to determine the number of whole months worked.
Eligibility begins with the first full month in the eligible position. 

        Promotion from an eligible position to another:    When an employee is promoted from one eligible position to another, that
month's incentive will be based on the prior position providing that the promotion occurred after the 15th of the month. When a promotion occurs on or before the 15th of
the month, that month's incentive will be based on the new position. 

Short-Term or Long-Term Disability, Workers' Compensation and other Leaves of Absence  

        Any participant on leave of absence or otherwise not actively working during the incentive period may be eligible for a prorated incentive excluding the period on
leave. The date the leave is effective and the date ending leave will be used to calculate the number of whole months worked in the incentive period. 

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Termination Due to Death or Retirement  

        Any incentive earned will be prorated for the incentive period based upon the actual number of whole months worked and paid simultaneously with the normal
distribution of incentives. For the purposes of this plan, retirement occurs if the individual's age plus years of service is equal to, or greater than, 70. 

Plan Description  

        The Executive Incentive Plan is an annual incentive. For all participants, the Corporate Performance Measure is based on EPS. In addition, some participants are
measured on the achievement of specific individual business objectives (IBOs). 

        For
the Vice President, Franchise Operations, the Performance Measure is based on a combination of Corporate Performance (EPS) and Franchise Operations Performance (see discussion
below). 

Target Incentive & Weighting  

        The target incentive is expressed as a percentage of base salary and is based on the position of the participant (see "Target Incentive Table"). The Target Payout
% multiplied by the participant's base salary on the last day of the fiscal year is the Target Incentive in dollars. 

Target Incentive Table  

	 
	 	Chief Executive

Officer & President
	 	Chief Officers
	 	Vice Presidents/

Executive Officers
	 	Vice Presidents/ Non-

Executive Officers
	 
	TARGET PAYOUT AS A % OF BASE SALARY	 	75	%	50	%	40	%	35	%

        The
incentive weighting for the Chief Executive Officer & President is based 100% on Corporate Performance (EPS). 

        The
incentive weighting for Chief Officers and Vice Presidents is 30% Individual Business Objectives and  70% Corporate Performance (EPS). 

        The
incentive weighting for the Vice President, Franchise Operations is 30% Individual Business Objectives,  35% Corporate Performance (EPS), and 35% Franchise Operations Performance (Sales—17.5% and
Operating Profit—17.5%). 

Corporate Performance  

        The Corporate Performance measure is based on EPS (Earnings Per Share). For calculating payouts for the 2004 Executive Incentive Plan, the EPS calculation will
include the following adjustments: 

	•
	Budgeted
shares outstanding will be used to exclude the impact of any share buyback.

	•
	Budgeted
bonus expenses will be excluded from the net income calculation.

	•
	Any
expenses and forgone income related to the execution of the approved buyback of IHOP Corp. common stock will be added back to the net income calculation.

	•
	Extraordinary
items may also be excluded from bonus calculations. If there are any major changes in Corporate direction, budgets, or target, the Payout Matrix may be
re-evaluated with Board/Compensation Committee approval. 

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        For
bonus calculation purposes, EPS will be calculated by using the following formula: 

	 
	 	 
	 	 

	 	 	Net Income (taking into account any adjustments highlighted above)
 21,850,000 (budgeted shares)	 	 

        No bonus will be paid out if EPS is less than $1.54.    Target bonuses are paid out for EPS between $1.71 and $1.719. For every
one cent in EPS achieved at and above $1.719, the payout increases by 5%. There is no maximum on the payout matrix. 

        In
addition to the calculated individual portion of the incentive, an award may be granted at the discretion of the Chief Executive Officer (with approval by the Compensation Committee)
to individuals exceeding expected levels of performance. 

        Refer
to the "Corporate Performance (EPS) Payout Matrix" to determine the incentive achieved for the Company performance portion of the incentive. 

Corporate Performance (EPS) Payout Matrix  

	 
	 	Target EPS $1.71
	 	 
	 	 

	 
	 	Payout

(as a % of target)
	 	 

	 
	 	EPS Range
	 	 

	 	 	Less Than $1.54	 	0%	 	 
	 	 	$1.540 - $1.573	 	50%	 	 
	 	 	$1.574 - $1.607	 	60%	 	 
	 	 	$1.608 - $1.641	 	70%	 	 
	 	 	$1.642 - $1.675	 	80%	 	 
	 	 	$1.676 - $1.709	 	90%	 	 
	 	 	
	 	 
	 	 	$1.710 - $1.719	 	100%	 	 
	 	 	
	 	 
	 	 	$1.720 - $1.729	 	105%	 	 
	 	 	$1.730 - $1.739	 	110%	 	 
	 	 	$1.740 - $1.749	 	115%	 	 
	 	 	$1.750 - $1.759	 	120%	 	 
	 	 	$1.760 - $1.769	 	125%	 	 
	 	 	$1.770 - $1.779	 	130%	 	 
	 	 	$1.780 - $1.789	 	135%	 	 
	 	 	$1.790 - $1.799	 	140%	 	 
	 	 	$1.800 - $1.809	 	145%	 	 
	 	 	$1.810 - $1.819	 	150%	 	 
	 	 	
	 	 
	 	 	Each .01 over 1.82	 	Additional 5%	 	 
	 	 	
	 	 

Individual Business Objectives (IBOs)  

        Annually, each participant in the plan sets individual business objectives in conjunction with his or her immediate supervisor in December of each year. During
this process, challenging and measurable objectives that significantly impact the Company performance are to be mutually determined. No participant will have more than three IBOs without approval by
the Chief Executive Officer. After the fiscal year, a percentage of achievement is then established by the immediate supervisor and approved 

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by
the Chief Executive Officer. This amount is used to determine the IBO portion of the annual payout. 

        If EPS is less than $1.54, there will be no payout for Individual Business Objectives, regardless of individual achievement level.

Franchise Operations Performance  

        Franchise Operations Performance is based on actual sales and operating profit versus original budget, not flex budget. 

        The
following payout matrix is used to determine the incentive achieved for the Franchise Operations performance portion of the incentive payout. 

        Any
changes to the original budget due to sales or re-sales will require the CEO & President's approval. New units are excluded from the Franchise Operations
performance portion of the plan. 

Franchise Operations—Sales & Operating Profit Payout Matrix  

	 
	 	Performance Achievement
	 	% Of Incentive Achieved
	 	 

	 
	 	Min
	 	Max
	 	Sales
	 	Operating

Profit
	 	 

	 	 	0.00%	 	91.99%	 	0%	 	0	 	 
	 	 	92.00%	 	92.99%	 	20%	 	20%	 	 
	 	 	93.00%	 	93.99%	 	30%	 	30%	 	 
	 	 	94.00%	 	94.99%	 	40%	 	40%	 	 
	 	 	95.00%	 	95.99%	 	50%	 	50%	 	 
	 	 	96.00%	 	96.99%	 	60%	 	60%	 	 
	 	 	97.00%	 	97.99%	 	70%	 	70%	 	 
	 	 	98.00%	 	98.99%	 	80%	 	80%	 	 
	 	 	99.00%	 	99.99%	 	90%	 	90%	 	 
	 	 	100.00%	 	100.99%	 	100%	 	100%	 	 
	 	 	101.00%	 	101.99%	 	105%	 	105%	 	 
	 	 	102.00%	 	102.99%	 	110%	 	110%	 	 
	 	 	103.00%	 	103.99%	 	115%	 	115%	 	 
	 	 	104.00%	 	104.99%	 	120%	 	120%	 	 
	 	 	105.00%	 	105.99%	 	125%	 	125%	 	 
	 	 	106.00%	 	106.99%	 	130%	 	130%	 	 
	 	 	107.00%	 	107.99%	 	135%	 	135%	 	 
	 	 	108.00%	 	and above	 	140%	 	140%	 	 
	 	 	
	 	 

        If EPS is less than $1.54, there will be no payout for the Franchise Operations performance portion of the bonus.

Payment Distribution  

        Incentive payouts will be distributed within 90 days following the close of the fiscal year for which the incentive was earned. Payouts will be paid in a
separate check from the regular payroll check, and are subject to normal withholding deductions. 

Plan Administration  

        The Executive Incentive Plan is administered by the IHOP Corp. Human Resources Department. This Plan Document and its provisions regulate all plan guidelines and
participant eligibility. Any exception must be submitted in writing to the Human Resources Department and must be approved by the Chief Executive Officer and the Compensation Committee of the Board of
Directors. 

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Exhibit 10.15  

 
  IHOP CORP.
  2001 STOCK INCENTIVE PLAN
  NON-QUALIFIED STOCK OPTION AGREEMENT    
    

        THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this "Option Agreement") is entered into as of  February 24,
2004 (the "Date of Grant"), by and between IHOP CORP., a Delaware corporation (the
"Company"), and X (the "Optionee"). 

RECITALS:  

        Pursuant to the Company's 2001 Stock Incentive Plan (the "Plan"), the Compensation Committee of the Board of Directors of the Company, as the Administrator of the
Plan, has determined that the Optionee is to be granted an option (the "Option") to purchase shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), on the terms and
conditions set forth herein, and hereby grants such Option. The Option is not intended to constitute an "incentive stock option" within the meaning of Section 422 of the Internal Revenue Code
of 1986, as amended (the "Code"). 

        Any
capitalized terms not defined herein shall have their respective meanings set forth in the Plan. 

AGREEMENT:  

        In consideration of the foregoing and of the mutual covenants set forth herein and other good and valuable consideration, the parties hereto agree as follows: 

        1.     NUMBER OF OPTION SHARES AND OPTION PRICE. The Option entitles the Optionee to
purchase                        shares of the
Company's Stock (the "Option Shares") at a price of $             per share (the "Option Exercise Price"). 

        2.     PERIOD OF OPTION AND CONDITIONS OF EXERCISE. 

        (a)   Period of Option. Unless the Option is previously terminated pursuant to this Option Agreement, the term of the Option
and this Option Agreement shall commence on the date hereof (the "Date of Grant") and shall terminate upon the tenth anniversary of the Date of Grant. Upon termination of the Option, all rights of the
Optionee (including, without limitation, his or her guardian or legal representative) hereunder shall cease. 

        (b)   Conditions of Exercise. Subject to the Optionee's continued employment with the Company, this Option shall vest and
become exercisable as to one-third (1/3) of the shares subject to the Option on each of the first, second and third anniversaries of the Date of Grant, Notwithstanding
anything in this Option Agreement to the contrary, the Option may be exercised only to purchase whole shares of Stock, and in no case may a fraction of a share of Stock be purchased. The right of the
Optionee to purchase Option Shares with respect to which this Option has become exercisable as herein provided may only be exercised prior to the termination of the Option. 

        (c)   Acceleration. The Administrator may, in its discretion, accelerate the exercisability of all of the Option Shares or any
part thereof, upon such circumstances and subject to such terms and conditions as the Administrator deems appropriate; provided, however, that the
Option Shares may not be accelerated by the Administrator prior to the first anniversary of the Date of Grant. 

        3.     RIGHTS UPON TERMINATION OF EMPLOYMENT. 

        (a)   Except
as otherwise provided in this Section 3, the Option may not be exercised after the Optionee has ceased to be employed by the Company or any of its
Subsidiaries. 

        (b)   If
the Optionee's employment with or service to the Company or any Subsidiary terminates by reason of his or her death, the Option may thereafter be exercised, to the
extent then exercisable by the legal representative of the estate or by the legatee of the Optionee under 

 

the
will of the Optionee, for a period of twelve (12) months from the date of death or until the expiration of term of the Option, whichever period is shorter. 

        (c)   If
the Optionee's employment or service with the Company or any Subsidiary terminates by reason of Disability, the Option may thereafter be exercised, to the extent it
was exercisable at the time of such termination for a period of twelve (12) months from the date of the termination of employment or service or until the expiration of the term of the Option,
whichever period is shorter, provided, however, that, if the Optionee dies within such twelve-month period and prior to the expiration of the term of the Option, the Option shall thereafter be
exercisable to the extent to which it was exercisable at the time of death for a period of twelve (12) months from the time of death or until the expiration of the term of the Option, whichever
period is shorter. 

        (d)   If
the Optionee's employment or service with the Company or any Subsidiary terminates by reason of Retirement, the Option may thereafter be exercised, to the extent it
was exercisable at the time of such termination for a period of twelve (12) months from the date of Retirement or until the expiration of the term of the Option, whichever period is shorter. 

        (e)   If
an Optionee's employment or service with the Company or any Subsidiary terminates for any reason other than death, Disability or Retirement, the Option may be
exercised until the earlier to occur of (i) three months from the date of such termination or (ii) the expiration of the Option's term. 

        (f)    Upon
the termination of the Optionee's employment with the Company within a period of twenty-four (24) months following a Change of Control
(i) by the Company other than for Cause, (ii) as a result of his or her Disability or (iii) by the Optionee in a Voluntary Termination or for Good Reason (as such terms are
defined herein below), in lieu of shares of Stock issuable upon exercise of an outstanding Option, whether or not then exercisable, the Company shall pay the Optionee a lump sum amount (less any
applicable taxes), in cash, equal to the product of (i) the excess of the Fair Market Value of the Option Shares on such date of termination, over the Option Exercise Price, and (ii) the
number of the then unexercised Option Shares. The Option shall be canceled upon the making of such payment. Notwithstanding the foregoing, in the event any payment or benefit received or to be
received by the Optionee in connection with the termination of the Optionee's employment (whether such benefit is pursuant to the terms of this Option Agreement or any other plan, arrangement or
agreement with the Company) would not be deductible in whole or in part by the Company as a result of Section 280G of the Code, then, to the extent necessary to make such
non-deductible portion of such payments and benefits deductible, the payments under this Section 3(d) will be reduced (if necessary, to zero). For purposes of the foregoing
limitation, (i) no portion of the payment shall be taken into account which in the opinion of tax counsel selected by the Company's independent auditors does not constitute a "parachute
payment" within the meaning of Section 280G(b)(2) of the Code, including by reason of Section 280G(b)(4)(A) of the Code, and (ii) the payment shall be reduced only to the extent
necessary so that the payment in its entirety constitutes reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4)(B) of the Code or is otherwise not
subject to disallowance as deductions, in the opinion of the tax counsel referred to above in clause (i). 

        (g)   Notwithstanding
anything in this Section 3 to the contrary, the Option may not be exercised after termination of the Option. 

        4.     EXERCISE OF OPTION SHARES. 

        (a)   Payment for Option Shares. This Option may be exercised only by the Optionee (or his or her guardian or legal
representative) or his or her transferees (i) by will or the laws of descent and distribution (ii) pursuant to a qualified domestic relations order. This Option may be exercised by 

2

 

giving
written notice of exercise to the Company, specifying the number of Option Shares to be purchased and accompanied by a cashier's or certified bank check to the order of the Company for the
aggregate Option Exercise Price of the exercised Option Shares and any applicable withholding taxes. In the discretion of the Administrator, payment may also be made, in whole or in part, in the form
of unrestricted Stock already owned by the Optionee, Restricted Stock (as defined in the Plan) or Performance Shares (as defined in the Plan) granted under the Plan, based in each case on the Fair
Market Value of the Stock on the date the Option is exercised. If payment of the Option Exercise Price is made in whole or in part in the form of Restricted Stock or Performance Shares, the shares of
Stock received upon exercise of such Option (to the extent of the number of shares of Restricted Stock or Performance Shares surrendered upon exercise of such Option) shall be restricted in accordance
with the original terms of the Restricted Stock of Performance Share award in question. 

        (b)   Delivery of Option Shares. Upon exercise of the Option and payment of the Option Price pursuant to paragraph (a)
of this Section 4, the Company shall issue or cause to be issued, and delivered as promptly as possible to the Optionee, certificates representing the appropriate number of Option Shares, which
certificates shall be registered in the name of the Optionee. 

        5.     REQUIREMENTS OF LAW AND OF STOCK EXCHANGES. By accepting this Option, Optionee represents and agrees for himself or
herself and his or her transferees by will or the laws of descent and distribution or pursuant to a qualified domestic relations order that, unless a registration statement under the Securities Act of
1933 is in effect as to the Option Shares purchased upon any exercise of this Option, (i) any and all Option Shares so purchased shall be acquired for his or her personal account and not with a
view to or for sale in connection with any distribution, and (ii) each notice of the exercise of any portion of this Option shall be accompanied by a representation and warranty in writing,
signed by the person entitled to exercise the same, that the Option Shares are being so acquired in good faith for his or her personal account and not with a view to or for sale in connection with any
distribution. 

        Notwithstanding
anything in this Option Agreement to the contrary, no certificate or certificates for Option Shares purchased upon exercise of this Option shall be issued and delivered
prior to the admission of such Option Shares to listing on notice of issuance on any stock exchange on which shares of that class are then listed, nor unless or until, in the opinion of counsel for
the Company, such securities may be issued and delivered without causing the Company to be in violation of or incur any liability under any federal, state or other securities law, any requirement of
any securities exchange
listing agreement to which the Company may be a party, or any other requirement of law or of any regulatory body having jurisdiction over the Company. 

        6.     ADJUSTMENT IN STOCK. In the event of any merger, reorganization, consolidation, recapitalization, Stock dividend,
extraordinary cash dividend or other change in the corporate structure affecting the Stock, a substitution or adjustment shall be made in the number of unexercised Option Shares and the Option
Exercise Price as may be determined by the Administrator, in its sole discretion. Such other substitutions or adjustments shall be made as the Administrator in its sole discretion may deem
appropriate. 

        7.     NONTRANSFERABILITY OF OPTION. The Option and this Option Agreement shall not be transferable otherwise than (i) by
will or the laws of descent and distribution or (ii) pursuant to a qualified domestic relations order and, during the lifetime of Optionee, the Option may be exercised only by Optionee or by a
transferee pursuant to a qualified domestic relations order; provided, however, that Optionee shall be permitted to transfer the Option to a trust controlled by Optionee during the Optionee's lifetime
for estate planning purposes. Without limiting the generality of the foregoing, except as otherwise provided herein, the Option may not be assigned, transferred, pledged or hypothecated in any way,
shall not be assignable by operation of law, and shall not be subject to 

3

 

execution,
attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of any execution,
attachment or similar process upon the Option shall be null and void and without effect. 

        8.     DISPUTE RESOLUTION. The parties hereto will use their reasonable best efforts to resolve any dispute hereunder through
good faith negotiations. A party hereto must submit a written notice to any other party to whom such dispute pertains, and any such dispute that cannot be resolved within thirty (30) calendar
days of receipt of such notice (or such other period to which the parties may agree) will be submitted to an arbitrator selected by mutual agreement of the parties. In the event that, within fifty
(50) days of the written notice referred to in the preceding sentence, a single arbitrator has not been selected by mutual agreement of the parties, a panel of arbitrators (with each party to
the dispute being entitled to select one arbitrator and, if necessary to prevent the possibility of deadlock, one additional arbitrator being selected by such arbitrators selected by the parties to
the dispute) shall be selected by the parties. Except as otherwise provided herein or as the parties to the dispute may otherwise agree, such arbitration will be conducted in accordance with the then
existing rules of the American Arbitration Association. The decision of the arbitrator or arbitrators, or of a majority thereof, as the case may be, made in writing will be final and binding upon the
parties hereto as to the questions submitted, and the parties will abide by and comply with such decision; provided, however, the arbitrator or arbitrators, as the case may be, shall not be empowered
to award punitive damages. Unless the decision of the arbitrator or arbitrators, as the case may be, provides for a different allocation of costs and expenses determined by the arbitrators to be
equitable under the circumstances, the prevailing party or parties in any arbitration will be entitled to recover all reasonable fees (including but not limited to attorneys' fees) and expenses
incurred by it or them in connection with such arbitration from the non-prevailing party or parties. 

        9.     RIGHTS OF OPTIONEE IN STOCK. The Optionee shall not be entitled to any of the rights or privileges of a stockholder of the
Company with respect to the shares of Stock subject to this Option unless and until he or she has given notice of exercise and has paid in fall for such shares, pursuant to Section 4 hereof,
and has given the representation required under Section 5. 

        10.   NOTICES. Any notice to be given to the Company shall be personally delivered to or addressed to the Secretary of the
Company at its principal office, and any notice to be given to the Optionee shall be addressed to him or her at the address given beneath his or her signature hereto, or at such other address as the
Optionee may hereafter designate in writing to the Company. Any notice to the Company is deemed given when received by the Company. Any notice to Optionee is deemed given upon the earlier of the date
it is received by the Optionee or five (5) days following the date it is enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited, postage and
registration or certification fee prepaid, in a post office or branch post office regularly maintained by the United States. 

        11.   FAILURE TO ENFORCE NOT A WAIVER. The failure of the Company to enforce at any time any provision of this Option Agreement
shall in no way be construed to be a waiver of such provision or of any other provision hereof. 

        12.   WITHHOLDING. The Company's obligations under this Option Agreement shall be subject to all applicable tax and other
withholding requirements, and the Company shall, to the extent permitted by law, have the right to deduct any withholding amounts from any payment or transfer of any kind otherwise due to the
Optionee. 

        13.   INCORPORATION OF PLAN. The Plan is hereby incorporated by reference and made a part hereof, and the Option and this
Option Agreement are subject to all terms and conditions of the Plan. 

        14.   EMPLOYMENT. Neither the Plan, the granting of the Option, this Option Agreement nor any other action taken pursuant to
the Plan shall constitute or be evidence of any agreement or 

4

 

understanding,
express or implied, that the Optionee has a right to continue to provide services as an officer, director, employee, consultant or advisor of the Company or any Parent Subsidiary for
any period of time or at any specific rate of compensation. 

        15.   AMENDMENT AND TERMINATION. The Administrator may amend or terminate the Plan at any time;  provided, however, that the
amendment or termination of the Plan shall not, without the consent of the
Optionee or his or her legal representative affect his or her rights under this Option Agreement. 

        16.   LAWS APPLICABLE TO CONSTRUCTION. This Option Agreement shall be construed and enforced in accordance with the laws of the
State of Delaware, without giving effect to the choice of law principles thereof. 

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

        18.   DEFINED TERMS. As used in this Option Agreement, the following terms shall have the meanings set forth below: 

        (a)   "Cause"
shall mean termination upon: (1) the willful failure by the Optionee to substantially perform his or her duties with the Company (other than any such
failure resulting from his or her incapacity due to physical or mental illness); (2) the Optionee's willful misconduct that is injurious to the Company, monetarily or otherwise; or
(3) the Optionee's commission of such acts of dishonesty, fraud, misrepresentation or other acts of moral turpitude as would prevent the effective performance of his or her duties. 

        (b)   "Disability"
shall mean the Optionee's incapacity, due to physical or mental illness, and absence as a result thereof from the performance of his or her duties with the
Company for ninety (90) consecutive days or one hundred eighty (180) days within any twelve (12) month period. Should such absence occur, the Optionee's employment may be
terminated by the Company for "Disability." 

        (c)   Good
Reason. At any time following a Change in Control, the Optionee may terminate his or her employment for "Good Reason." "Good Reason" shall mean the occurrence
(without the Optionee's express written consent) of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act described in
subparagraph (i), (iv), (v), (vi) or (vii) below, such act or failure to act is corrected prior to the expiration of thirty (30) days from the receipt by the Company of a written
notice from the Optionee asserting that the Company has acted, or failed to act, in a manner that creates "Good Reason," which written notification must be given to the Company by the Optionee at
least thirty (30) days prior to termination of employment by the Optionee based on a claim that "Good Reason" for such termination exists: 

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

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

	(iii)
	The
failure by the Company to pay the Optionee any portion of the Optionee's current compensation, or to pay to the Optionee any portion of any installment of deferred
compensation under any deferred compensation program of the Company within seven (7) days of the date such compensation is due; 

5

 

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

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

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

The
Optionee's right to terminate the Optionee's employment for Good Reason shall not be effected by the Optionee's incapacity due to physical or mental illness. The Optionee's continued employment
shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder. 

        (d)   Voluntary
Termination. The Optionee may terminate this Option Agreement under terms constituting a "Voluntary Termination" upon a material breach of this Option
Agreement by the Company, unless the Company shall fully correct such breach within thirty (30) days of the Optionee's notice of termination given in respect thereof. 

6

 

        IN WITNESS WHEREOF, the parties hereto have executed this Option Agreement as of the date first set forth above. 

	 	 	IHOP CORP.
	

 	
 	

By:	
 	

    
 Julia A. Stewart
 President and CEO	
 	

 

        The undersigned has had the opportunity to read the terms and provisions of the foregoing Option Agreement and the terms and provisions of the Plan, herein
incorporated by reference. The undersigned hereby accepts and agrees to all the terms and provisions of the foregoing Option Agreement and to all the terms and provisions of the Plan, herein
incorporated by reference. 

	

 	
 	

    
 Optionee Signature	
 	

 
	 	 	 	 	 	 
	

 	
 	

Date:	

    
	
 	

 
	 	 	 	 	 	 
	

 	
 	

    
 Address	
 	

 
	 	 	 	 	 	 
	

 	
 	

    
 City/State/Zip	
 	

 
	 	 	 	 	 	 

7

QuickLinks

IHOP CORP. 2001 STOCK INCENTIVE PLAN NON-QUALIFIED STOCK OPTION AGREEMENT

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