APPLEBEE'S INTERNATIONAL, INC.
POST-2004 NONQUALIFIED DEFERRED COMPENSATION PLAN
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APPLEBEE'S INTERNATIONAL, INC.
POST-2004 NONQUALIFIED DEFERRED COMPENSATION PLAN
TABLE OF CONTENTS
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SECTION 1
INTRODUCTION AND
DEFINITIONS....................................................................1
1.1
Purpose and Application of this Plan
Document.........................................................1
1.2
Definitions...........................................................................................1
1.2.1
Account........................................................................................1
1.2.2
Administrator..................................................................................1
1.2.3
Affiliate......................................................................................1
1.2.4
Annual Valuation
Date..........................................................................1
1.2.5
Base
Pay.......................................................................................1
1.2.6
Beneficiary....................................................................................1
1.2.7
BFC............................................................................................2
1.2.8
Board..........................................................................................2
1.2.9
Bonus..........................................................................................2
1.2.10
Change in
Control..............................................................................2
1.2.11
Code...........................................................................................2
1.2.12
Compensation...................................................................................3
1.2.13
Disabled or
Disability.........................................................................3
1.2.14
ECC............................................................................................3
1.2.15
Employee.......................................................................................3
1.2.16
Employer.......................................................................................3
1.2.17
Employer Discretionary Contribution
Credits....................................................3
1.2.18
Employer Matching Contribution
Credits.........................................................3
1.2.19
Enrollment
Period..............................................................................3
1.2.20
ERISA..........................................................................................3
1.2.21
Excess
Compensation............................................................................3
1.2.22
Fiduciary
Committee............................................................................3
1.2.23
Key
Employee...................................................................................3
1.2.24
Measuring
Investments..........................................................................4
1.2.25
Participant....................................................................................4
1.2.26
Performance Based
Bonus........................................................................4
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1.2.27
Plan...........................................................................................4
1.2.28
Plan
Year......................................................................................4
1.2.29
Post-2004 Account...
..........................................................................4
1.2.30
Pre-2005
Account...............................................................................4
1.2.31
Sponsor........................................................................................4
1.2.32
Sponsor's 401(k)
Plan..........................................................................4
1.2.33
Terminates Employment or Terminated Employment, Terminating
Employment or
Termination of
Employment......................................................................4
1.2.34
Unforeseeable
Emergency........................................................................5
1.2.35
Valuation
Date.................................................................................5
1.3
Gender................................................................................................5
1.3.1
Gender and
Number..............................................................................5
1.4
Grandfather...........................................................................................5
SECTION 2
PARTICIPATION...................................................................................5
2.1 Who
May
Participate...................................................................................5
2.1.1
Eligible
Participant...........................................................................5
2.1.2
Terms and Conditions of
Participation..........................................................6
2.1.3
Termination of
Participation...................................................................6
SECTION 3
CREDITS TO
ACCOUNTS.............................................................................6
3.1
Deferrals from
Salary.................................................................................6
3.1.1
Amount of
Deferrals............................................................................6
3.1.2
Suspension of Deferrals Due to Hardship or Unforeseeable Emergency
Distribution................7
3.2
Employer Matching Contribution
Credits................................................................7
3.3
Employer Discretionary Contribution
Credits...........................................................7
3.4
Credits from Measuring
Investments....................................................................7
SECTION 4
ADJUSTMENT OF
ACCOUNTS..........................................................................7
4.1
Establishment of
Accounts...........................................................................7
4.2 Accounting
Rules....................................................................................8
SECTION 5
VESTING OF
ACCOUNTS.............................................................................8
5.1
Participant
Deferrals.................................................................................8
5.2
Employer
Contributions................................................................................8
SECTION 6
SPENDTHRIFT
PROVISION...........................................................................8
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SECTION 7
DISTRIBUTIONS...................................................................................8
7.1 Time
of
Distribution..................................................................................8
7.2
Benefit Upon
Disability...............................................................................9
7.3
Benefit Upon
Death....................................................................................9
7.3.1
Retirement Death
Benefit.......................................................................9
7.3.2
Designation of
Beneficiary.....................................................................9
7.3.3
Failure of
Designation.........................................................................9
7.3.4
Disclaimers by
Beneficiaries...................................................................9
7.3.5
Death Prior to Full
Distribution..............................................................10
7.3.6
Application for
Benefits......................................................................10
7.4
Benefit
Upon Other Termination of
Employment.........................................................10
7.4.1
Form of
Distribution..........................................................................10
7.4.2
Manner and
Time of
Election...................................................................10
7.4.3
Calculation of Installment
Amounts............................................................10
7.5
Benefit Prior to Termination of
Employment...........................................................11
7.5.1
Post-2004
Account.............................................................................11
7.6
Distributions in Cash or In
Kind.....................................................................11
7.7
Acceleration of
Distribution.........................................................................11
7.7.2
Payment of Employment
Taxes...................................................................11
7.7.3
Payment upon Income Inclusion under Section 409A of the
Code..................................11
7.8
Facility of
Payment..................................................................................11
7.9
Special IRS Transition
Rule..........................................................................11
SECTION 8
FUNDING OF
PLAN................................................................................12
8.1
Unfunded
Plan........................................................................................12
8.2
Corporate
Obligation.................................................................................12
SECTION 9
AMENDMENT AND
TERMINATION......................................................................12
9.1
Amendment and
Termination............................................................................12
9.2 Events
Allowing Immediate Payment upon Plan
Termination..............................................13
9.3 No
Oral
Amendments...................................................................................13
SECTION 10
DETERMINATIONS - RULES AND
REGULATIONS.........................................................13
10.1
Determinations.......................................................................................13
10.2 Rules and
Regulations................................................................................13
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10.3 Method of
Executing
Instruments......................................................................13
10.4 Claims
Procedure.....................................................................................13
10.4.1
Original
Claim................................................................................13
10.4.2
Review of Denied
Claim........................................................................14
10.4.3
General
Rules.................................................................................14
10.5 Limitations
and
Exhaustion...........................................................................14
10.5.1
Limitations...................................................................................14
10.5.2
Exhaustion
Required...........................................................................15
SECTION 11
PLAN
ADMINISTRATION............................................................................15
11.1
Officers.............................................................................................15
11.2
ECC..................................................................................................15
11.3
Administrator........................................................................................15
11.4
Delegation...........................................................................................16
11.5 Conflict of
Interest.................................................................................16
11.6
Administrator........................................................................................16
11.7 Service of
Process...................................................................................16
11.8
Expenses.............................................................................................16
11.9 Tax
Withholding......................................................................................16
11.10
Certifications.......................................................................................16
11.11 Errors in
Computations...............................................................................17
SECTION 12
CONSTRUCTION...................................................................................17
12.1 Applicable
Laws......................................................................................17
12.1.1
ERISA
Status..................................................................................17
12.1.2
IRC
Status....................................................................................17
12.1.3
References to
Laws............................................................................17
12.2 Effect on
Other
Plans................................................................................17
12.3
Disqualification.....................................................................................17
12.4 Rules of
Document
Construction.......................................................................17
12.5 Choice of
Law........................................................................................18
12.6 No
Employment
Contract...............................................................................18
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APPLEBEE'S INTERNATIONAL, INC.
POST-2004 NONQUALIFIED DEFERRED COMPENSATION PLAN
SECTION 1
INTRODUCTION AND
DEFINITIONS
1.1 Purpose and
Application of this of Plan Document. The purpose of this Plan
document is to provide
eligible Employees
of the Sponsor and its Affiliates
(collectively
"Employer") with
an opportunity to defer compensation on a
tax-deferred basis with respect to compensation earned after December 31,
2004.
The Plan is
designed to be an unfunded deferred compensation plan for the
benefit of a select group of management and highly compensated
employees, and is
intended to
comply with section 409A of the Code and the proposed IRS
regulations and other
guidance issued thereunder. This amended and restated
document is adopted
effective as of January 1, 2005,
and governs the terms
related to deferrals
of compensation
earned after December 31, 2004. All
deferrals with respect to compensation earned before January 1, 2005
("Pre-2005
Deferrals"), were fully vested as of December 31, 2004 and the
terms of the Plan
in effect on October
3, 2004, shall
remain in effect and
apply solely to
the
Pre-2005 Deferrals.
1.2 Definitions.
When the following terms are used herein with initial capital
letters, they shall
have the following
meanings unless the context clearly
requires a different meaning:
1.2.1 Account
means
the separate bookkeeping account(s)
established with respect to each person who is a Participant in
this Plan.
1.2.2
Administrator
means the BFC or any person(s) or
entity(ies) to whom or
to which the BFC has
delegated any
and all plan
administration authority, duties and responsibilities.
1.2.3 Affiliate
means a business entity that with the Sponsor is
considered
a single employer under section 414(b) or section 414(c) of the
Code.
1.2.4 Annual
Valuation Date means each December 31.
1.2.5 Base
Pay means, with respect to a Participant, such
Participant's
annual rate
of base salary as determined by the
Administrator in its
sole discretion paid to such Participant by the
Employer,
before reduction
because of salary
deferrals into this Plan or
any other
plan or arrangement
of the Employer
whereby compensation is
deferred,
including,
without limitation,
a plan whereby
compensation is
reduced in
accordance
with section 401(k) or section 125 of the Code.
"Base Pay"
does not include any other remuneration paid by the Employer,
including
some or all Bonuses,
overtime, stock options, distributions of
compensation
previously
deferred,
restricted
stock,
commissions,
allowances
for expenses (including moving, travel expenses and automobile
expenses)
and fringe benefits payable in a form other than cash.
1.2.6
Beneficiary means a
person designated pursuant to Section
7.3 to
receive all or a part of the Participant's Account in the event of
the
Participant's death
prior to full distribution thereof. A person so
designated
shall not be
considered a
Beneficiary until the
death of the
Participant.
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1.2.7 BFC
means the Applebee's International, Inc. Benefits
Fiduciary
Committee appointed by the Board.
1.2.8 Board
means the board of
directors of the
Sponsor or its
successor.
"Board" shall also mean and refer to such other person, persons
or committee to
whom the Board chooses to delegate designated aspects of
plan
administration in its sole discretion.
1.2.9 Bonus
means, with respect to a Participant, the total cash
remuneration paid or
payable to such
Participant by the Employer under a
bonus
program, including a Performance Based Bonus, before reduction
because
of salary deferrals into this Plan or any other plan or
arrangement of the Employer whereby compensation is deferred,
including,
without
limitation, a plan
whereby compensation
is reduced in accordance
with
section 401(k) or
section 125 of the Code. "Bonus" does not include
any other
remuneration paid by the Employer, including Base Pay,
overtime,
stock
options, distributions of compensation previously deferred,
restricted
stock, commissions,
allowances for expenses (including moving,
travel
expenses and automobile expenses) and fringe benefits
payable in a
form other than
cash.
1.2.10 Change in
Control shall be
deemed to have occurred if the
conditions
set forth in any one or more of the following have been
satisfied,
unless such condition
shall have received
prior approval of a
majority
vote of the Continuing Directors, as defined herein, indicating
that the
condition shall not constitute a Change in Control: (i) any
"person",
as such term is used in Section 13(d) and 14(d) of the
Securities
Exchange Act of 1934 ("Act") (other than the Sponsor, any
trustee or
other fiduciary
holding securities
under an employee
benefit
plan of
the Sponsor or any corporation owned, directly or indirectly,
by
the
stockholders of the Sponsor in substantially the same proportions as
their
ownership of stock of
the Sponsor), is or
becomes the
"beneficial
owner" (as
defined in Rule 13d-3 under the Act), directly or indirectly,
of
securities of the Sponsor representing thirty percent (30%)
or more of
the
combined voting power of the Sponsor's then outstanding securities;
or
(ii)
during any period of two (2) consecutive years (not including any
period
prior to the effective date of the Applebee's International, Inc.
1995
Equity Incentive Plan), individuals ("Existing Directors") who at
the
beginning
of such period
constitute the Board , and any new director (and
"Approved
Director") (other than a director designated by a person who
has
entered
into an agreement with the Sponsor to effect a transaction
described
in paragraph
(i), (ii) or (iii) of this Section 1.2.6 whose
election
by the Board or nomination for election by the Sponsor's
shareholders was
approved by a vote of
at least two thirds
(2/3) of the
directors
then still in office
who either were directors at the beginning
of the
period or whose election or nomination for election previously was
so
approved (Existing Directors together with Approved Directors
constituting "Continuing Directors"), cease for any reason to
constitute
at least a
majority of the Board; or (iii) the stockholders of the Sponsor
approve a
merger or
consolidation of the
Sponsor with any other
person,
other than
(a) a merger or consolidation which would result in the
voting
securities
of the Sponsor outstanding immediately prior thereto continuing
to
represent (either by
remaining outstanding
or by being converted into
voting
securities for the
surviving entity) more than fifty percent (50%)
of the
combined voting power
of the voting
securities of the
Sponsor or
such
surviving entity outstanding immediately after such merger or
consolidation, or (b)
a merger in which no
"person" (as
defined above
acquires
more than thirty
percent (30%) of the
combined voting power
of
the
Sponsor's then outstanding securities; or (iv) the stockholders of
the
Sponsor
approve a plan of complete liquidation of the Sponsor or an
agreement
for the sale or disposition by the Sponsor of all or
substantially all of
the Sponsor's assets
(or any transaction
having a
similar
effect).
1.2.11 Code means the
Internal Revenue Code of 1986, as amended.
2
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1.2.12 Compensation
means
Base
Pay,
Bonus
and Excess
Compensation.
1.2.13 Disabled
or Disability with respect to a Participant,
shall
mean a determination of "Disability" pursuant to the Sponsor's
long-term
disability plan,
if the definition of disability in such
plan
complies
with clause (i) or
(ii) in the next
sentence. In
the absence
of
such a plan being applicable to the Participant, "Disabled" or
"Disability" shall
mean the Participant
(i) is unable to engage in any
substantial
gainful activity
by reason of any medically determinable
physical
or mental impairment
which can be expected to result in death or
can be
expected to
last for a continuous
period of not less
than twelve
(12)
months; (ii) is by
reason of any
medically determinable physical
or mental
impairment
which can be
expected to result in
death or can be
expected
to last for a
continuous
period of not less than twelve (12)
months,
receiving income replacement benefits for a period of
not less
than
three (3) months under an accident and health plan covering
Employees
of the Participant's Employer;
or (iii) is
determined
to be
disabled
by the Social Security
Administration.
1.2.14 ECC
means the Executive Compensation Committee of the
Board.
1.2.15 Employee means
an employee of the Sponsor or an Affiliate.
1.2.16 Employer
means the Sponsor and any Affiliate of the
Sponsor
with respect to such Affiliate's Employees.
1.2.17 Employer
Discretionary
Contribution
Credits means the
amounts
credited to the Plan in accordance with Section 3.3.
1.2.18 Employer
Matching Contribution
Credits means the
amounts
credited
to the Plan in accordance with Section 3.2.
1.2.19 Enrollment
Period means the
period of time
designated by
the
Administrator
during which an eligible person may elect to defer
Compensation for such
Plan Year pursuant
to the Plan.
Each Enrollment
Period
must end prior to the
first day of the Plan Year to which such
Enrollment
Period relates.
Notwithstanding the foregoing, in the case of
the first
year in which a person
becomes eligible to
participate in the
Plan,
the Enrollment Period shall mean the thirty (30) day period
immediately following
the date the person is designated as being eligible
for the
Plan and any election to defer Compensation shall be effective
as
of the
first day of the pay
period next
following the Administrator's
receipt of
the person's election to defer Compensation.
1.2.20 ERISA means the
Employee Retirement Income Security Act of
1974, as
amended.
1.2.21 Excess
Compensation means,
with respect to a Participant,
the total
remuneration paid or payable to such Participant by the
Employer
for a
calendar year that
would not be
deductible by the
Employer due to
the
application of Section 162(m) of the Code.
1.2.22 Fiduciary
Committee means the Benefits Fiduciary Committee
appointed
by the Chief Executive
Officer and such other person or persons
to whom
the Benefits Fiduciary
Committee chooses to
delegate
designated
aspects of
plan administration in its sole discretion.
1.2.23 Key
Employee means key employee as defined by Section
416(i) of
the Code without regard to Section 416(i)(5).
3
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1.2.24 Measuring
Investments
shall have the meaning
ascribed to
such term
in Section 3.4.
1.2.25 Participant
means an Employee of the Employer who is
eligible
to participate in this Plan in accordance with the provisions of
Section 2
and who has elected to defer Compensation under Section 3. An
Employee
who has become a Participant shall be considered to continue as
a
Participant in this Plan until the date of the Participant's
death or, if
earlier,
the date when the
Participant
no longer has any
Account under
this Plan
(that is, the
Participant has received a distribution of all of
the
Participant's Account).
1.2.26 Performance
Based
Bonus
means, with respect to a
Participant, the
total cash remuneration paid or payable to such
Participant by the
Employer under a bonus
program that is
contingent on
the
satisfaction of
organizational or
individual performance
criteria,
established in
writing not later than ninety (90) days after the
commencement of the
period of service to which the criteria relates
(provided
that the Participant's
satisfaction of the performance criteria
is
substantially
uncertain at the time
the criteria
are established),
relating
to a performance
period of a minimum of twelve (12) consecutive
months,
before reduction because of salary deferrals into this Plan or
any
other
plan or arrangement of the Employer whereby compensation is
deferred,
including,
without limitation,
a plan whereby
compensation is
reduced in
accordance
with section 401(k) or section 125 of the Code.
"Performance Based
Bonus" shall not
include any amount or portion of any
amount
that will be paid to Participant either regardless of performance
or based
upon a level of performance that is substantially certain to be
met at the
time the criteria is established. A Bonus that is based on the
value of,
or increase in the value of, Employer Stock does not qualify
as
a
Performance Based Bonus.
1.2.27 Plan
means
this amended and restated Applebee's
International, Inc.
Nonqualified
Deferred Compensation
Plan, as amended
from time
to time.
1.2.28 Plan Year means
the twelve (12) consecutive month period
ending on
each Annual Valuation Date. Notwithstanding the foregoing, if
a
Participant commences participation in the Plan after the first day
of any
calendar
year, then his initial
"Plan Year" shall commence on the date of
participation and end
on the following December 31st.
1.2.29 Post-2004
Account means the separate bookkeeping account
maintained
for each Participant with respect to amounts deferred for
calendar
years beginning on or after January 1, 2005, and earnings
thereon.
1.2.30 Pre-2005
Account means the
separate bookkeeping
account
maintained
for each Participant with respect to amounts deferred for
calendar
years ending on or before December 31, 2004, and earnings
thereon.
1.2.31 Sponsor
means Applebee's International, Inc. or any
successor
in interest.
1.2.32 Sponsor's
401(k) Plan means the
Applebee's International,
Inc. 401(k)
Savings Plan.
1.2.33 Terminates
Employment, Terminated Employment, Terminating
Employment
or Termination of Employment refers to the complete
severance
of an
Employee's
employment
relationship
with the Employer and all
Affiliates
for any reason. An Employee does not sever his or her
employment
relationship in a
transfer from employment with an Employer to
employment
with an Affiliate of an Employer. If an Employer who is an
4
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Affiliate
ceases to be an Affiliate because of a sale of substantially
all
the stock
or assets of the Employer, then a Participant who is employed
by
that
Employer and who ceases to be employed by a participating Employer
in
this Plan
on account of the sale of substantially all the stock or assets
of the
Employer shall be considered to have Terminated Employment for the
purpose of
commencing distributions from this Plan.
1.2.34 Unforeseeable
Emergency means a
severe financial hardship
caused by
an extraordinary and
unforeseeable
circumstance
arising as a
result of
events beyond the
control of the
Participant
that may not be
relieved
through reimbursement or compensation from insurance or
otherwise,
by liquidation of the
Participant's assets
(to the extent the
liquidation of such assets would not cause a severe financial hardship),
or by
cessation of deferrals
under this Plan, and
that falls into one or
more of
the following
categories:
(i) an illness or accident of the
Participant, the
Participant's
spouse,
or any dependents of the
Participants (as
defined in Section 152 of the Code); (ii) unreimbursed
and
unreimbursable
expenses for medical
care described in Section 213(d)
of the
Code previously
incurred by the
Participant,
the Participant's
spouse,
or any dependents of
the Participants (as
defined in Section 152
of the
Code); (iii)
payments necessary to prevent the eviction of the
Participant from
his or her
primary residence or foreclosure on the
mortgage
of the Participant's primary residence; (iv) loss of the
Participant's property
due to casualty; or
(v) funeral expenses incurred
by the
Participant related to
the Participant's
spouse or dependents
of
the
Participant (as defined in Section 152 of the Code).
1.2.35 Valuation Date
means the business day
coincident with or
next
preceding the Annual
Valuation Date and any other date designated by
the Board
in its discretion.
1.3 Gender.
1.3.1 Gender
and Number. Except as otherwise indicated by
context,
masculine terminology
used herein also includes the feminine and
neuter,
and terms used in the singular may also include the plural.
1.4 Grandfather.
Amounts earned
and vested under the Plan on or before
December 31, 2004
shall be governed by
the terms of the plan
in effect on and
before December 31,
2004. The terms of the
Plan governing amounts
earned and
vested under the Plan on or before December 31, 2004 shall not be materially
modified after October
23, 2004 (as
determined in accordance with Section 409A
of the Code and any
regulations
promulgated
thereunder).
Amounts earned and
vested under the Plan
on or before
December 31, 2004
shall be segregated from
amounts earned and vested on or after January 1, 2005 in
Participants'
Pre-2005
Accounts. The terms of
this amended and
