Document:

Exhibit 10.1

EXHIBIT 10.1

LIMITED WAIVER AND AMENDMENT NO. 6 TO SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

THIS LIMITED WAIVER AND AMENDMENT NO. 6 TO SECOND AMENDED AND RESTATED REVOLVING CREDIT
AGREEMENT (this “Agreement”) is entered into as of the 27th day of July, 2011, by and among
(a) REAL MEX RESTAURANTS, INC., formerly known as Acapulco Acquisition Corp., a Delaware
corporation (“Real Mex”), ACAPULCO RESTAURANTS, INC., a Delaware corporation
(“ARI”), EL TORITO FRANCHISING COMPANY, a Delaware corporation (“ETFI”), EL TORITO
RESTAURANTS, INC., a Delaware corporation (“ETRI”), TARV, INC., a California corporation
(“TARV”), ACAPULCO RESTAURANT OF VENTURA, INC., a California corporation (“ARV”),
ACAPULCO RESTAURANT OF WESTWOOD, INC., a California corporation (“ARW”), ACAPULCO MARK
CORP., a Delaware corporation (“AMC”), MURRAY PACIFIC, a California corporation
(“MP”), ALA DESIGN, INC., a California corporation (“ALAD”), REAL MEX FOODS, INC.,
formerly known as ALA Foods, Inc., a California corporation (“RMF”), ACAPULCO RESTAURANT OF
DOWNEY, INC., a California corporation (“ARD”), ACAPULCO RESTAURANT OF MORENO VALLEY, INC.,
a California corporation (“AMV”), EL PASO CANTINA, INC., a California corporation
(“EPC”), CKR ACQUISITION CORP., a Delaware corporation (“CKR”), CHEVYS RESTAURANTS,
LLC, a Delaware limited liability company (“Chevys”; and collectively with Real Mex, ARI,
ETFI, ETRI, TARV, ARV, ARW, AMC, MP, ALAD, RMF, ARD, AMV, EPC and CKR, the “Borrowers”),
(b) the lending institutions party hereto as Lenders, and (c) GENERAL ELECTRIC CAPITAL CORPORATION
as agent and administrative agent (the “Agent”) for itself and such lending institutions.

RECITALS

WHEREAS, the Borrowers, Lenders, and Agent entered into a Second Amended and Restated
Revolving Credit Agreement, dated as of January 29, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; unless otherwise defined
herein, capitalized terms used herein that are not otherwise defined herein shall have the
respective meanings assigned to such terms in the Credit Agreement);

WHEREAS, Borrowers have requested that the Agent and the Lenders amend certain provisions of
the Credit Agreement and waive certain breaches or violations and certain Defaults and Events of
Default under the Credit Agreement, all as set forth in this Agreement;

WHEREAS, the Agent and Lenders agree to such amendments and waivers upon the terms and subject
to conditions set forth herein; and

WHEREAS, contemporaneously with the execution and delivery of this Agreement, the 2009
Indenture is being waived and amended as provided in a supplemental indenture, in the form attached
hereto as Annex A (the “Indenture Amendment”).

 

 

 

NOW THEREFORE, in consideration of the premises and the mutual agreements set forth, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

1. Definitions in Credit Agreement; etc. Unless otherwise defined herein, terms
defined in or by reference to the Credit Agreement (as from time to time amended) are used herein
as therein defined.

2. Limited Waiver and Consent. The Agent and the Lenders hereby:

(a) waive any breach or violation of the Credit Agreement described on Annex B hereto
(and any resulting Default or Event of Default) and the Events of Defaults described on Annex
B hereto;

(b) waive requirements of §13.5 solely during the period from and including the Amendment No.
6 Date through (but excluding) November 15, 2011; and

(c) notwithstanding anything to the contrary in the Credit Agreement, consent to the execution
and delivery of, and the payment of the fees, costs and expenses due and payable to the lenders,
agents and trustees (and their respective counsel) expressly contemplated in, (i) the Last-Out
Participation Purchase Agreement, (ii) waiver and amendment to 2009 Parent Debt Documents described
in paragraph (i) of Annex C hereto (the “2011 Parent Debt Document
Amendment”) (iii) waiver and amendment to the Second A&R Unsecured Credit Agreement described
in paragraph (ii) of Annex C hereto (the “2011 Second A&R Unsecured Credit
Agreement Amendment”) and (iv) the Indenture Amendment;

provided, that the waivers and consents set forth above shall be limited precisely as
written and shall not be deemed or otherwise construed to constitute a waiver of any other Default
or other Event of Default or any other provision of the Credit Agreement or any other Loan Document
or to prejudice any right, power or remedy which the Agent or any Lender may now have or may have
in the future under or in connection with any such other Default, other Event of Default or other
provision of the Credit Agreement or any other Loan Document, all of which rights, power and
remedies are hereby expressly reserved by the Agent and the Lenders;

3. Amendments. The Credit Agreement is hereby amended as follows:

(a) §1.1 of the Credit Agreement is amended by amending and restating the following
definitions to read in their entirety as follows:

Letter of Credit Facility. The letter of credit facility established
pursuant to this Credit Agreement in an aggregate amount equal to the Letter of
Credit Amount.

Revolving Credit Loan Facility. The revolving credit loan facility
established pursuant to this Credit Agreement in the aggregate amount equal to the
Revolving Credit Amount (with unlimited availability for letters of credit).

Total Revolving Credit Commitment. The sum of the Revolving Credit
Commitments of the Lenders, as in effect from time to time. The Total Revolving
Credit Commitment shall include the revolving credit loan commitment equal to
the Revolving Credit Amount (with unlimited availability for letters of credit) and
the letter of credit commitment equal to the Letter of Credit Amount.

 

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(b) §1.1 of the Credit Agreement is further amended by inserting therein in the proper
alphabetical order the following definitions:

Amendment No. 6. Limited Waiver and Amendment No. 6 to Second Amended
and Restated Credit Agreement dated as of the Amendment No. 6 Date by and among the
Borrowers , the Lenders signatory thereto and the Agent.

Amendment No. 6 Date. July 27, 2011.

Consent and Release Agreements. Each of the consent and release
agreements described on Exhibit G hereto.

Last-Out Participation Purchase Agreement. Last-Out Participation
Purchase Agreement, dated as of the Amendment No. 6 Date, between Sun Cantinas
Finance, LLC, a Delaware limited liability company, and GE Franchise Finance
Commercial LLC, a Delaware limited liability company, as a Lender.

“Letter of Credit Amount”. (a) At all times prior to the Reallocation
Effective Time, $25,000,000 and (b) at all times from and after the Reallocation
Effective Time, the difference of (i) $25,000,000 minus (ii) the sum of the
aggregate purchase price paid for all Supplemental Last-Out Participations,
provided, however, that in no event shall the Letter of Credit
Amount be less than $22,500,000.

Reallocation Effective Time. The first time at which each of the
following conditions has been satisfied:

(a) The Agent shall have received a written request from the Borrowers
to increase the Revolving Credit Amount and decrease the Letters of Credit
Amount in the same amount specified in such written request (it being
understood and agreed the aggregate amount requested in all such written
requests may not exceed $2,500,000); and

(b) Parties to the Last-Out Participation Purchase Agreement shall have
executed and delivered a last out participation purchase agreement (in form
and substance substantially identical to the Last-Out Participation Purchase
Agreement) pursuant to which Sun Cantinas Finance, LLC shall have purchased
the first Supplemental Last-Out Participation (and the applicable purchase
price under such last out participation agreement shall have been paid in
full).

 

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“Revolving Credit Amount”. (a) At all times prior to the Reallocation
Effective Time, $15,000,000 and (b) at all times from and after the Reallocation
Effective Time, the sum of (i) $15,000,000 plus (ii) the sum of the
aggregate
purchase price paid for all Supplemental Last-Out Participations,
provided, however, that in no event shall the Revolving Credit
Amount exceed $17,500,000.

“Sixth Amendment Fee”. An amendment fee in an amount equal to
$200,000.

(c) §2.1 of the Credit Agreement is amended by replacing the phrase

“the Outstanding amount of Revolving Credit Loans (after giving effect to
all amounts requested) shall not at any time exceed $15,000,000”

appearing therein with the phrase

“the Outstanding amount of Revolving Credit Loans (after giving effect to
all amounts requested) shall not at any time exceed the Revolving Credit
Amount”

“Supplemental Last-Out Participation”. As defined in the Last-Out
Participation Purchase Agreement.

(d) §6.1 of the Credit Agreement is amended and restated to read in its entirety as follows:

“6.1 Fees. The Borrowers jointly and severally agree to pay the Agent
(i) all fees described in the Fee Letter in accordance with the term thereof and
(ii) on the earlier to occur of (A) July 1, 2012 or (B) the date on which the
Revolving Credit Commitments are terminated, for the account of the Lenders, a
portion of the Sixth Amendment Fee in an amount equal to $100,000 (which is fully
earned as of the Amendment No. 6 Date and is non-refundable once paid).”

(e) §14.1 of the Credit Agreement is amended by inserting new clause (x) and new clause (y)
therein, which shall read in their entirety as follows:

“(x) The Borrowers shall fail to submit to the Agent and Lenders on or prior
to September 15, 2011, a reasonably detailed proposal to restructure
Borrowers’ and Parent’s material debt arrangements (the “Comprehensive
Restructuring Plan”), accompanied by an officer’s certificates of each
of the Borrowers certifying that such Comprehensive Restructuring Plan was
prepared on a reasonable basis and in good faith and is based on assumptions
believed by the Borrowers to be reasonable at the time made and from the
best information then reasonably available to the Borrowers; or

 

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“(y)) (i) failure by (a) the Borrowers, (b) the beneficial holders of a
majority in aggregate principal amount of the outstanding 2009 Senior
Secured Debt, (c) Majority Lenders, (d) the Requisite Lenders under (and as
defined in) the Second A&R Unsecured Credit Agreement, (e) the Requisite
Lenders under (and as defined in) the 2009 Parent Debt Documents, and (f) a
majority of the holders of Parent common equity
interests to negotiate and execute a binding restructuring term sheet, plan
support agreement, lock-up agreement or similar agreement containing the
substance of the Comprehensive Restructuring Plan or another plan with
respect to the Borrowers’ and Parent’s material debt arrangements on or
prior to October 31, 2011 (any such agreement, a “Plan Agreement”)
(it being understood and agreed that each Lender whose signature is required
in order to satisfy the requirements of clause (i) above shall have the
right to determine, in its sole discretion, whether or not to execute any
such proposed Plan Agreement) or (ii) following the execution of a Plan
Agreement, failure by the Borrowers to comply in all material respects with
the terms of the Plan Agreement, or to otherwise implement in all material
respects the Plan Agreement in accordance with the terms thereof, in each
case, which failure continues and has not been cured for a period of 10 days
following the Borrowers’ receipt of written notice thereof from the Agent or
the Majority Lenders;”

(f) §14.1 of the Credit Agreement is further amended by inserting the following new sentence
at the end thereof, which shall read in its entirety as follows:

“Notwithstanding anything to the contrary contained herein, no Default or Event
of Default shall occur prior to November 15, 2011 solely by reason of any breach or
violation of Article 11 of this Credit Agreement for the measurement period ending
on or about September 25, 2011.”

(g) Schedule 1 to the Credit Agreement is amended and restated to read as Schedule
1 hereto.

(h) Exhibit G hereto is inserted in the Credit Agreement as Exhibit G thereto.

4. Conditions. This Agreement shall be effective on the first day on which each of
the following conditions precedent have been satisfied:

(a) The Agent shall have received a counterpart signature of the Borrowers and the Lenders to
this Agreement;

(b) The Borrowers shall have paid, in immediately available funds, to the Agent for the
account of the Lenders, a portion of the Sixth Amendment Fee in an amount equal to $100,000, which
is fully earned and non-refundable once paid;

(c) The Borrowers shall deliver all other documents listed on, take all actions set forth on
and satisfy all other conditions precedent listed in the Closing Checklist attached hereto as
Annex D, all in form and substance, or in a manner, reasonably satisfactory to the Agent;

 

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(d) The Borrowers shall have paid to the Lenders or the Agent, all fees that are due and
payable on or before the date hereof and shall have reimbursed the Agent for, or
paid directly, all fees, costs and expenses incurred by the Agent’s counsel in connection with
the closing of the transactions contemplated hereby;

(e) The Consent and Release Agreements shall have been duly executed and delivered by each of
the parties thereto, shall be in full force and effect and shall be in form and substance
satisfactory to the Agent;

(f) The Indenture Amendment shall have been duly executed and delivered by each of the parties
thereto;

(g) The Last-Out Participation Purchase Agreement shall have been duly executed and delivered
by each of the parties thereto (and the applicable purchase price thereunder shall have been paid
in full), shall be in full force and effect and shall be in form and substance satisfactory to the
Agent;

(h) The 2011 Parent Debt Document Amendment shall have been duly executed and delivered by
each of the parties thereto; and

(i) The 2011 Second A&R Unsecured Credit Agreement Amendment shall have been duly executed and
delivered by each of the parties thereto.

5. Representations and Warranties. The Borrowers represent and warrant to the Lenders
and the Agent as follows:

(a) The execution, delivery and performance of this Agreement (i) is within the corporate
authority of such Person, (ii) has been duly authorized by all necessary corporate proceedings,
(iii) does not conflict with or result in any breach or contravention of any provision of law,
statute, rule or regulation to which any of the Borrowers or any of their Subsidiaries is subject
or any judgment, order, writ, injunction, license or permit applicable to any of the Borrowers or
any of their Subsidiaries and (iv) does not conflict with any provision of the corporate charter or
bylaws of, or any agreement or other instrument binding upon, any of the Borrowers or any of their
Subsidiaries.

(b) The execution and delivery of this Agreement will result in valid and legally binding
obligations of such Person enforceable against it in accordance with the respective terms and
provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting generally the enforcement of
creditors’ rights and except to the extent that availability of the remedy of specific performance
or injunctive relief is subject to the discretion of the court before which any proceeding therefor
may be brought.

(c) The execution, delivery and performance by each of the Borrowers and their Subsidiaries of
this Agreement, does not require the approval or consent of, or filing with, any governmental
agency or authority other than those already obtained.

 

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(d) Each of the representations and warranties of any of the Borrowers and their Subsidiaries
contained in the Credit Agreement, the other Loan Documents or in any document or instrument
delivered pursuant to or in connection with the Credit Agreement shall be true as of the date as of
which they were made and shall also be true at and as of the time and
after giving effect to this Agreement (except to the extent that such representations and
warranties relate expressly to an earlier date) and, after giving effect to this Agreement, no
Default or Event of Default shall have occurred and be continuing.

(e) Neither the Parent nor any of its Subsidiaries is in breach of or in default under any of
the following agreements (other than a breach or default which has been, or is, contemporaneously
herewith, being, cured or waived):

(i) any Unsecured Term Loan Document;

(ii) any 2009 Parent Debt Documents; or

(iii) any 2009 Senior Secured Debt Documents.

6. Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which when taken together shall
constitute but one and the same instrument.

7. Continuing Effect of the Credit Agreement. Except as expressly set forth herein,
this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of, or
otherwise affect the rights and remedies of the Lenders, the Agents or the Borrowers under the
Credit Agreement and shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Credit Agreement, all of which
are ratified and affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle the Borrowers to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement in similar or different circumstances. This Agreement shall
apply and be effective only with respect to the provisions of the Credit Agreement specifically
referred to herein. After the effectiveness of this Agreement, any reference to the Credit
Agreement shall mean the Credit Agreement as amended and modified hereby.

8. Release.

(a) In consideration of, among other things, Agent’s and Lenders’ execution and delivery of
this Agreement (and without prejudice to the continuing effectiveness of the Loan Documents in
accordance with their terms, as amended hereby), each Borrower hereby fully, finally and forever
releases, waives, voids, extinguishes, and discharges each Released Parties (as hereinafter
defined) from any and all claims (including, without limitation, crossclaims, counterclaims, and
rights of setoff and/or recoupment), actions, causes of action, suits, liens, damages and
consequential damages, demands, bonds, bills, specialties, controversies, variances, trespasses,
judgments, executions, costs, expenses or other claims of whatever nature or kind, in each case
whether liquidated or unliquidated, fixed or contingent, matured or unmatured, known or unknown,
foreseen or unforeseen, now existing, in law, equity, or otherwise, that such Borrower now has
against any or all of the Lenders, L/C Issuers and Agent (the Lenders, L/C Issuer and Agent are
collectively referred to as the “Lender Parties”) and any Affiliate of any of the Lender
Parties acting in any capacity under the Credit Agreement and other Loan Documents, together with
each of their respective Affiliates, successors and assigns, and the

 

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 respective predecessors,
successors, assigns and present and former Affiliates (whether by operation of law or otherwise), and each of their respective members, partners,
equityholders, officers, directors, employees, representatives, advisors, attorneys, agents and
professionals, and any Person claiming by or through any of them in whatever capacity, including
other Persons through which such Person may act (collectively, the “Released Parties”),
based in whole or in part on facts, whether or not now known, in each case that relate to, arise
out of or otherwise are in connection with: (i) any or all of the Loan Documents or transactions
contemplated thereby or any actions or omissions in connection therewith, (ii) any aspect of the
dealings or relationships between or among any or all of the Borrowers, on the one hand, and any or
all of the Released Parties, on the other hand, relating to any or all of the documents,
transactions, actions or omissions referenced in clause (i) hereof, or (iii) any aspect of the
dealings or relationships between or among any or all of the equity holders of the Borrowers, on
the one hand, and the Released Parties, on the other hand, but only to the extent such dealings or
relationships relate to any or all of the documents, transactions, actions or omissions referenced
in clause (i) hereof (collectively, the “Released Claims”).

(b) Each Borrower hereby further agrees and covenants not to at any time sue, instigate,
institute, cause to institute, assist in instituting or permit to be instituted by, through or on
its behalf, in whatever capacity including, but not limited to, through other Persons or entities
through which Borrowers may act, any legal, equitable or administrative proceedings or to otherwise
allege or assert any Released Claims against any of the Released Parties.

(c) Each Borrower further agrees and acknowledges that this release shall bar and extinguish
any and all Released Claims against the Released Parties whether asserted by, through, on behalf of
or under such Borrower, in whatever capacity, in each case without further act or action under
applicable law, regulation, order, or rule or the vote, consent, authorization or approval of any
Person. In addition, each Borrower further agrees and covenants not to aid, abet, assist,
instruct, consent to or counsel any third party in asserting any Released Claim against any
Released Parties.

(d) To the extent that, notwithstanding the Illinois choice of law provisions in Section
9 of this Agreement, California law is deemed to apply to the release provisions set forth
herein, each Borrower represents and warrants that it is fully aware of California Civil Code
Section 1542, which provides as follows:

SECTION 1542. GENERAL RELEASE. A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN
HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.

 

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Each Borrower hereby knowingly and voluntarily waives and relinquishes the provisions, rights and
benefits of California Civil Code Section 1542 and all similar federal or state laws, rights,
rules, or legal principles of any other jurisdiction that may be applicable herein, and any rights
it may have to invoke the provisions of any such law now or in the future with respect to the
Released Claims being released pursuant to this Agreement, and each Borrower hereby agrees and
acknowledges that this is an essential term of the releases set forth herein. In connection
with such releases, each Borrower acknowledges that it is aware that it or its attorneys or others
may hereafter discover Released Claims or facts presently unknown or unsuspected in addition to or
different from those which they now know or believe to be true with respect to the subject matter
of the Released Claims being released pursuant to this Agreement. Nevertheless, it is the
intention of the Borrowers in executing this Agreement to fully, finally, and forever settle and
release the Released Claims.

(e) The provisions of this Section shall survive the termination of this Agreement, the Credit
Agreement, the other Loan Documents and payment in full of the Obligations.

(f) None of the foregoing provisions of this Section 8 shall apply in any way to the right of
the Borrowers to enforce their rights and the obligations of the Agent and the Lenders under the
Credit Agreement, based upon facts arising after the Amendment No. 6 Date.

9. Applicable Law. THIS AGREEMENT IS A CONTRACT UNDER THE LAWS OF THE STATE OF
ILLINOIS AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
SAID STATE OF ILLINOIS (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).

10. Headings. Headings herein are included herein for convenience of reference only
and shall not constitute a part hereof for any other purpose or be given any substantive effect.

11. Loan Document. This Agreement shall constitute a Loan Document.

12. Reaffirmation. Each of the Borrowers hereby confirms its respective guarantees,
pledges, grants of security interests and mortgages and other obligations, as applicable, under and
subject to the terms of each of the other Loan Documents to which it is party, and agrees that,
notwithstanding the effectiveness of this Agreement, such guarantees, pledges, grants of security
interests and mortgages and other obligations, and the terms of each of the other Loan Documents to
which it is a party, are not impaired or affected in any manner whatsoever and shall continue to be
in full force and effect after giving effect to this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver and Amendment No. 6 to
Second Amended and Restated Revolving Credit Agreement to be executed and delivered by their
respective officers thereunto duly authorized as of the date first written above.

	 	 	 	 	 	 	 
	 	 	REAL MEX RESTAURANTS, INC.

ACAPULCO RESTAURANTS, INC.

EL TORITO FRANCHISING COMPANY

EL TORITO RESTAURANTS, INC.

TARV, INC.

ACAPULCO RESTAURANT OF VENTURA, INC.

ACAPULCO RESTAURANT OF WESTWOOD, INC.

ACAPULCO MARK CORP.

MURRAY PACIFIC

ALA DESIGN, INC.

REAL MEX FOODS, INC.

ACAPULCO RESTAURANT OF DOWNEY, INC.

ACAPULCO RESTAURANT OF MORENO VALLEY, INC.

EL PASO CANTINA, INC.

CKR ACQUISITION CORP.

CHEVYS RESTAURANTS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Signature Page to

Limited Waiver and Amendment No.6 to Credit Agreement

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver and Amendment No. 6 to
Second Amended and Restated Revolving Credit Agreement to be executed and delivered by their
respective officers thereunto duly authorized as of the date first written above.

	 	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	GE FRANCHISE FINANCE COMMERCIAL LLC, a Delaware
limited liability company, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

Signature Page to

Limited Waiver and Amendment No.6 to Credit Agreement

 

 

 

PARENT ACKNOWLEDGMENT, CONSENT AND REAFFIRMATION AND RELEASE

Section 1. Acknowledgment, Consent and Reaffirmation

Parent hereby acknowledges the receipt of the above Limited Waiver and Amendment No. 6 to Second
Amended and Restated Revolving Credit Agreement and consents to the terms and provision thereof,
and hereby (i) confirms and reaffirms all of its guarantees, pledges, grants of security interests
and other obligations and undertakings under the Parent Guaranty, the applicable Stock Pledge
Agreement and each of the other Loan Documents to which it is a party and (ii) acknowledges and
agrees that subsequent to, and after taking account of the provisions of the above Limited Waiver
and Amendment No. 6 to Second Amended and Restated Revolving Credit Agreement, such guarantees,
pledges, grants of security interests and other obligations and undertakings and the terms of each
such Loan Documents are not impaired or affected in any manner whatsoever and shall continue to be
in full force in accordance with the terms thereof.

Parent hereby represents and warrants that (a) it has full capacity and right to make and perform
this Acknowledgment, Consent and Reaffirmation, and all necessary authority has been obtained; (b)
this Acknowledgment, Consent and Reaffirmation constitutes its legal, valid and binding obligation
enforceable in accordance with its terms, except as enforcement may be limited by equitable
principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
creditors’ rights generally; (c) the making and performance of this Acknowledgment, Consent and
Reaffirmation does not and will not violate the provisions of any applicable law, regulation or
order, and does not and will not result in the breach of, or constitute a default or require any
consent under, any material agreement, instrument, or document to which it is a party or by which
it or any of its property may be bound or affected; and (d) all consents, approvals, licenses and
authorizations of, and filings and registrations with, any governmental authority required under
applicable law and regulations for the making and performance of this Acknowledgment, Consent and
Reaffirmation have been obtained or made and are in full force and effect.

Section 2. Release

In consideration of, among other things, Agent’s and Lenders’ execution and delivery of the above
Limited Waiver and Amendment No. 6 to Second Amended and Restated Revolving Credit Agreement (and
without prejudice to the continuing effectiveness of the Loan Documents in accordance with their
terms, as amended thereby), Parent hereby fully, finally and forever releases, waives, voids,
extinguishes, and discharges each Released Parties (as hereinafter defined) from any and all claims
(including, without limitation, crossclaims, counterclaims, and rights of setoff and/or
recoupment), actions, causes of action, suits, liens, damages and consequential damages, demands,
bonds, bills, specialties, controversies, variances, trespasses, judgments, executions, costs,
expenses or other claims of whatever nature or kind, in each case whether liquidated or
unliquidated, fixed or contingent, matured or unmatured, known or unknown, foreseen or unforeseen,
now existing, in law, equity, or otherwise that Parent now has against any or all of the Lenders,
L/C Issuers and Agent (the Lenders, L/C Issuer and Agent are collectively referred to as the
“Lender Parties”) and any Affiliate of any of the Lender Parties acting in any capacity
under the Credit Agreement and other Loan Documents, together with each of their

 

 

 

 respective
Affiliates, successors and assigns, and the respective predecessors, successors, assigns and present and former Affiliates (whether by operation of law or otherwise),
and each of their respective members, partners, equityholders, officers, directors, employees,
representatives, advisors, attorneys, agents and professionals, and any Person claiming by or
through any of them in whatever capacity, including other Persons through which such Person may act
(collectively, the “Released Parties”), based in whole or in part on facts, whether or not
now known, in each case that relate to, arise out of or otherwise are in connection with: (i) any
or all of the Loan Documents or transactions contemplated thereby or any actions or omissions in
connection therewith, (ii) any aspect of the dealings or relationships between or among Parent, on
the one hand, and any or all of the Released Parties, on the other hand, relating to any or all of
the documents, transactions, actions or omissions referenced in clause (i) hereof, or (iii) any
aspect of the dealings or relationships between or among any or all of the equity holders of
Parent, on the one hand, and the Released Parties, on the other hand, but only to the extent such
dealings or relationships relate to any or all of the documents, transactions, actions or omissions
referenced in clause (i) hereof (collectively, the “Released Claims”).

Parent hereby further agrees and covenants not to at any time sue, instigate, institute, cause to
institute, assist in instituting or permit to be instituted by, through or on its behalf, in
whatever capacity including, but not limited to, through other Persons or entities through which
Parent may act, any legal, equitable or administrative proceedings or to otherwise allege or assert
any Released Claims against any of the Released Parties.

Parent further agrees and acknowledges that this release shall bar and extinguish any and all
Released Claims against the Released Parties whether asserted by, through, on behalf of or under
such Parent, in whatever capacity, in each case without further act or action under applicable law,
regulation, order, or rule or the vote, consent, authorization or approval of any Person. In
addition, Parent further agrees and covenants not to aid, abet, assist, instruct, consent to or
counsel any third party in asserting any Released Claim against any Released Parties.

To the extent that, notwithstanding the Illinois choice of law provisions in Section 9 of
the above Limited Waiver and Amendment No. 6 to Second Amended and Restated Revolving Credit
Agreement, California law is deemed to apply to the release provisions set forth herein, Parent
represents and warrants that it is fully aware of California Civil Code Section 1542, which
provides as follows:

SECTION 1542. GENERAL RELEASE. A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN
HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.

 

 

 

Parent hereby knowingly and voluntarily waives and relinquishes the provisions, rights and benefits
of California Civil Code Section 1542 and all similar federal or state laws, rights, rules, or
legal principles of any other jurisdiction that may be applicable herein, and any rights it may
have to invoke the provisions of any such law now or in the future with respect to the Released
Claims being released pursuant to this Section, and Parent hereby agrees and acknowledges that this
is an essential term of the releases set forth herein. In connection with such releases, Parent
acknowledges that it is aware that it or its attorneys or others may hereafter discover Released
Claims or facts presently unknown or unsuspected in addition to or different from those which it
now knows or believes to be true with respect to the subject matter of the Released Claims being
released pursuant to this Section. Nevertheless, it is the intention of Parent in executing this
Acknowledgment, Consent and Reaffirmation and Release to fully, finally, and forever settle and
release the Released Claims.

The provisions of this Section shall survive the termination of this Acknowledgment, Consent and
Reaffirmation and Release, the Credit Agreement, the other Loan Documents and payment in full of
the Obligations.

None of the foregoing provisions of this Section shall apply in any way to the right of Parent to
enforce its rights and the obligations of the Agent and the Lenders under the Credit Agreement,
based upon facts arising after the Amendment No. 6. Date.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

Executed this
 _____ 
day of July, 2011.

	 	 	 	 	 	 	 	 	 
	 	 	RM RESTAURANT HOLDING CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Signature Page to

Parent Acknowledgment, Consent and Reaffirmation and Release

 

 

 

ANNEX A

Indenture Amendment 

(to be attached)

 

 

 

ANNEX B

Specified Defaults

	1	 	§14.1(c): Breach of §9.5.1 as a result of the failure to promptly notify the Agent in
writing of the occurrence of Defaults and Events of Default described in paragraphs 2 through
7 below

	2.	 	§14.1(c): Breach of §11.1 as a result of the Leverage Ratio being greater than 6.00 to 1.00
for the period ending June 26, 2011.

	3.	 	§14.1(c): Breach of §11.2 as a result of the Adjusted Leverage Ratio being greater than 7.25
to 1.00 for the period ending June 26, 2011.

	4.	 	§14.1(c): Breach of §11.3 as a result of the Interest Coverage Ratio being less than 1.10 to
1.00 for the period ending June 26, 2011.

	5.	 	§14.1(c): Breach of §11.5 as a result of the Consolidated Cash Flow being less than
$32,000,000 for the period ending June 26, 2011.

	6.	 	§14.1(d) and §14.1(e): Breach of §9.10 as a result of defaults under the 2009 Senior Secured
Debt Documents, the Unsecured Term Loan Documents and the 2009 Parent Debt Documents, which
defaults have been waived by the applicable holders under the 2009 Senior Secured Debt
Documents, the Unsecured Term Loan Documents and the 2009 Parent Debt Documents.

	7.	 	§14.1(f)(i)(B): Cross-default as a result of non-payment defaults by Borrower under the 2009
Senior Secured Debt Documents and the Unsecured Term Loan Documents, which defaults have been
waived by the applicable holders under the 2009 Senior Secured Debt Documents and the
Unsecured Term Loan Documents.

	8.	 	§14.1(s): Cross-default as a result of the defaults by the Parent under the 2009 Parent Debt
Documents, which defaults have been waived by the applicable holders under the 2009 Parent
Debt Documents.

 

 

 

ANNEX C

Waiver and Amendments

	(i)	 	Limited Waiver and Second Amendment to Credit Agreement, dated as of the Amendment No. 6
Date, among Parent, Wilmington Trust, National Association (successor to Wilmington Trust
FSB), as administrative agent, Cocina Funding Corp LLC, as a Lender, and Sun Cantinas, LLC, as
a Lender.

	(ii)	 	Limited Waiver and First Amendment to Second Amended and Restated Credit Agreement, dated as
of the Amendment No. 6 Date, among Parent, Real Mex, Wilmington Trust, National Association
(successor to Wilmington Trust FSB), as administrative agent, and Z Capital Special Situations
Fund Holdings I, L.L.C., as a Lender.

 

 

 

ANNEX D

Closing Checklist

(attached)

 

 

 

EXHIBIT G

Consent and Release Agreements

	(i)	 	Consent and Release Agreement, dated as of Amendment No. 6 Date, Special Value Continuation
Partners, LP, Tennenbaum Opportunities Partners V, LP, J.P. Morgan Investment Management Inc.,
and the Credit Suisse entities listed on Schedule I attached thereto, as Consenting Parties,
Agent and Lenders party thereto.

	(ii)	 	Consent and Release Agreement, dated as of Amendment No. 6 Date, by Cocina Funding Corp LLC,
Sun Cantinas, LLC, and Wilmington Trust, National Association (successor to Wilmington Trust
FSB), as administrative agent, as Consenting Parties, in favor of Lenders, L/C Issuer and
Agent.

	(iii)	 	Consent and Release Agreement, dated as of Amendment No. 6 Date, by Z Capital Special
Situations Fund Holdings I, L.L.C. and Wilmington Trust, National Association (successor to
Wilmington Trust FSB), as administrative agent, as Consenting Parties, in favor of Lenders,
L/C Issuer and Agent.

 

 

 

Schedule 1

Lenders; Revolving Credit Commitments; Revolving Credit Commitment Percentages

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Revolving	 	 	 	 	Revolving	 
	 	 	Revolving	 	Credit	 	 	Revolving	 	Credit	 
	 	 	Credit	 	Commitment	 	 	Credit	 	Commitment	 
	 	 	Commitments	 	Percentages for	 	 	Commitments	 	Percentages for	 
	 	 	for Revolving	 	Revolving	 	 	for Letter of	 	Letter of Credit	 
	Lenders	 	Credit Facility	 	Credit Facility	 	 	Credit Facility	 	Facility	 
	GE Franchise Finance Commercial LLC 8377 East Hartford Drive, Suite 200, Scottsdale, Arizona 85255
	 	Revolving Credit Amount	 	 	100.00	%	 	Letter of Credit Amount	 	 	100.00	%
	Totals:
	 	Revolving Credit Amount	 	 	100.00	%	 	Letter of Credit Amount	 	 	100.00	%Exhibit 10.2

EXHIBIT 10.2

LIMITED WAIVER AND FIRST AMENDMENT TO SECOND AMENDED AND

RESTATED CREDIT AGREEMENT

THIS LIMITED WAIVER AND FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Agreement”) is entered into as of the 27th day of July, 2011, by and among (a) RM
RESTAURANT HOLDING CORP., a Delaware corporation (“Holdings”), (b) REAL MEX RESTAURANTS,
INC., a Delaware corporation (the “Company), (c) THE BANKS, FINANCIAL INSTITUTIONS AND
OTHER ENTITIES PARTY THERETO FROM TIME TO TIME AS LENDERS SIGNATORY HERETO (the “Lenders”)
and (d) WILMINGTON TRUST, NATIONAL ASSOCIATION (AS SUCCESSOR TO WILMINGTON TRUST FSB), as
administrative agent for the Lenders (in such capacity and together with its successors, the
“Administrative Agent”).

RECITALS

WHEREAS, Holdings, the Company, the Lenders, and the Administrative Agent entered into a
Second Amended and Restated Credit Agreement, dated as of July 7, 2009 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”; unless
otherwise defined herein, capitalized terms used herein shall have the respective meanings assigned
to such terms in the Credit Agreement);

WHEREAS, Holdings and the Company have requested that the Administrative Agent and the Lenders
amend certain provisions of the Credit Agreement and waive certain breaches or violations and
certain Defaults and Events of Default under the Credit Agreement, all as set forth in this
Agreement;

WHEREAS, the Administrative Agent and Lenders agree to such amendments and waivers upon the
terms and subject to conditions set forth herein;

WHEREAS, contemporaneously with the execution and delivery of this Agreement, the Senior Note
Indenture is being amended as provided in a supplemental indenture in a form provided to the
Administrative Agent and the Lenders (the “Indenture Amendment”);

WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties to
the Revolving Credit Agreement are entering into a limited waiver and amendment no. 6 to the
Revolving Credit Agreement in a form provided to the Administrative Agent and the Lenders (the
“Revolving Credit Agreement Amendment”);

WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties to
the Holdings Credit Agreement are entering into a limited waiver and second amendment to the
Holdings Credit Agreement in a form provided to the Administrative Agent and the Lenders (the
“Holdings Credit Agreement Amendment” and, collectively with the aforementioned amendments
in the foregoing Recitals, the “Amendments”);

 

 

 

NOW THEREFORE, in consideration of the premises and the mutual agreements set forth, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

1. Definitions in Credit Agreement; etc. Unless otherwise defined herein, terms
defined in or by reference to the Credit Agreement (as from time to time amended) are used herein
as therein defined.

2. Limited Waiver. The Administrative Agent and the Lenders hereby:

(a) waive any breach or violation of the Credit Agreement described on Annex
A hereto (and any Default or Event of Default resulting directly therefrom) and
the Events of Defaults described on Annex A hereto, provided, that
the waivers set forth above shall be limited precisely as written and shall not be
deemed or otherwise construed to constitute a waiver of any other Default or other
Event of Default or any other provision of the Credit Agreement or any other Loan
Document or to prejudice any right, power or remedy which the Administrative Agent
or any Lender may now have or may have in the future under or in connection with any
such other Default, other Event of Default or other provision of the Credit
Agreement or any other Loan Document, all of which rights, power and remedies are
hereby expressly reserved by the Administrative Agent and the Lenders; and

(b) notwithstanding anything to the contrary in the Credit Agreement, consent to (A)
the execution and delivery of (i) the Last-Out Participation Agreement (as defined
in this Agreement), (ii) the Amendments and (B) the consummation of the transactions
and other matters contemplated by such documents including, without limitation, the
payment of the fees, costs and expenses due and payable to the lenders, agents and
trustees (and their respective counsel) expressly contemplated in the Amendments.

3. Amendments. The Credit Agreement is hereby amended as follows:

(a) §1.1 of the Credit Agreement is amended by inserting therein in the proper alphabetical
order the following definitions:

“‘First Amendment Date’ means July 27, 2011.

‘Last-Out Participation’ means a last-out participation interest under
the Revolving Credit Agreement available to be purchased by Sun Cantinas Finance,
LLC (“Sun Finance”) and/or one or more Affiliates of Sun Capital Partners,
Inc. pursuant to the Last-Out Participation Agreement and any Supplemental
Participation Agreement.

‘Last-Out Participation Agreement’ means that certain Last-Out Loan
Participation Agreement, dated as of July 27, 2011, by and between Sun Finance and
GE Franchise Finance Commercial, LLC, a Delaware limited liability company, as
successor by assignment to General Electric Capital Corporation (“GE
Franchise”), in its individual capacity as a Lender, as amended, amended and
restated, modified or supplemented from time to time.

 

2

 

‘Supplemental Participation Agreement’ means a last-out participation
agreement by and between Sun Finance and GE Franchise (or one or more of their
respective permitted assigns) described in the Last-Out Participation Agreement.”

(b) §6.1(ii) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(ii) Indebtedness at any time incurred under the Revolving Credit Documents
and any Permitted Refinancing Indebtedness in respect of such Indebtedness in an
aggregate principal amount under this clause (ii) not to exceed $40,000,000,
including the Last-Out Participation, less the aggregate amount of all permanent
reductions (other than any reduction in the letter of credit commitment thereunder
that is accompanied with a corresponding increase in the revolving credit loan
commitment thereunder or any reduction in the revolving credit loan commitment
thereunder that is accompanied with a corresponding increase in the letter of credit
commitment thereunder, provided, that, notwithstanding any such reduction and
corresponding increase, the aggregate principal amount pursuant to this clause (ii)
shall not exceed $40,000,000), of the commitments thereunder by the Company or any
of the Subsidiaries since the First Amendment Date;”

(c) §6.2(a)(x) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(ii) liens created under, or evidenced or governed by, the Revolving Credit
Documents (or the documents relating to any Permitted Refinancing Indebtedness in
respect thereof) securing Indebtedness permitted by subsection 6.1(ii) (including
the Last-Out Participation);”

(d) §6.9 of the Credit Agreement is amended to include the following words at the present
beginning thereof:

“Other than the Last-Out Participation,”

(e) Section 7 of the Credit Agreement is amended by inserting new §§7.13 and 7.14 therein
after removing the “.” at the present end of §7.12 thereof, which new §§7.13 and 7.14 shall read in
their entirety as follows:

“Section 7.13. Restructuring Plan. Failure by Holdings to cause the
Company to submit to the Administrative Agent and the Lenders (which delivery may be
made through counsel to such parties) on or prior to September 15, 2011, a
reasonably detailed proposal to restructure the Company’s material debt arrangements
(the “Comprehensive Restructuring Plan”), accompanied by an Officers’
Certificate certifying that such Comprehensive Restructuring Plan was prepared on a
reasonable basis and in good faith and is based on assumptions believed by the
Company to be reasonable at the time made and from the best information then
reasonably available to the Company; or

 

3

 

Section 7.14. Plan Agreement. (i) Failure by (a) the Company, (b) the
beneficial holders of a majority in aggregate principal amount of the outstanding
Senior Secured Notes, (c) the majority lenders under the Revolving Credit Agreement,
(d) the Requisite Lenders under the Credit Agreement; (e) the Requisite Lenders (as
defined in the Holdings Credit Agreement and subject to the proviso contained in
clause (d) Section 7.13 of such Holdings Credit Agreement) under the Holdings Credit
Agreement; and (f) a majority of the holders of Holdings’ common equity interests to
negotiate and execute a binding restructuring term sheet, plan support agreement,
lock-up agreement or similar agreement containing the substance of the Comprehensive
Restructuring Plan or another plan with respect to the Company’s material debt
arrangements on or prior to October 31, 2011 (any such agreement, a “Plan
Agreement”) (it being understood and agreed that each beneficial holder whose
signature is required in order to satisfy the requirements of clause (i) of this
Section 7.14 shall have the right to determine, in its sole discretion, whether or
not to execute any such proposed Plan Agreement) or (ii) following the execution of
a Plan Agreement, failure by the Company to comply in all material respects with the
terms of the Plan Agreement, or to otherwise implement in all material respects the
Plan Agreement in accordance with the terms thereof, in each case, which failure
continues and has not been cured for a period of 10 days following the Company’s
receipt of written notice thereof from the Administrative Agent or the Requisite
Lenders.”

4. Conditions. This Agreement shall be effective on the first day on which each of
the following conditions precedent have been satisfied:

(a) The Administrative Agent shall have received a counterpart signature of Holdings, the
Company and the Lenders party hereto which constitute Requisite Lenders under the Credit Agreement;

(b) The Company shall deliver a certificate of an authorized officer which shall (i) attach
copies of all documents listed on, the Closing Checklist attached hereto as Annex B, and
(ii) certify that (A) such documents are true and complete copies and (B) Holdings or the Company
has taken all actions set forth on the Closing Checklist and satisfied all other conditions
precedent listed thereon, all in form and substance, or in a manner, reasonably satisfactory to the
Lenders party hereto which constitute Requisite Lenders under the Credit Agreement;

(c) The Company shall have paid to the Lenders or the Administrative Agent, all fees that are
due and payable on or before the date hereof and shall have reimbursed the Administrative Agent and
the Lenders for, or paid directly, all fees, costs and expenses incurred by the Administrative
Agent’s and the Lenders’ counsel in connection with the closing of the transactions contemplated
hereby; and

(d) The Amendments shall have been duly executed and delivered by each of the parties thereto.

 

4

 

5. Representations and Warranties. Each of Holdings and the Company represents and
warrants to the Lenders and the Administrative Agent as follows:

(a) The execution, delivery and performance of this Agreement (i) is within the corporate
authority of such Person, (ii) has been duly authorized by all necessary corporate proceedings,
(iii) does not conflict with or result in any breach or contravention of any provision of law,
statute, rule or regulation to which any of Holdings or any of its Subsidiaries is subject or any
judgment, order, writ, injunction, license or permit applicable to any of Holdings or any of its
Subsidiaries and (iv) does not conflict with any provision of the corporate charter or bylaws of,
or any agreement or other instrument binding upon, any of Holdings or any of its Subsidiaries.

(b) The execution and delivery of this Agreement will result in valid and legally binding
obligations of such Person enforceable against it in accordance with the respective terms and
provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting generally the enforcement of
creditors’ rights and except to the extent that availability of the remedy of specific performance
or injunctive relief is subject to the discretion of the court before which any proceeding therefor
may be brought.

(c) The execution, delivery and performance by Holdings, the Company and its Subsidiaries of
this Agreement, does not require the approval or consent of, or filing with, any governmental
agency or authority other than those already obtained.

(d) Each of the representations and warranties of Holdings and the Company contained in the
Credit Agreement, the other Loan Documents or in any document or instrument delivered pursuant to
or in connection with the Credit Agreement shall be true as of the date as of which they were made
and shall also be true at and as of the time and after giving effect to this Agreement (except to
the extent that such representations and warranties relate expressly to an earlier date) and, after
giving effect to this Agreement, no Default or Event of Default shall have occurred and be
continuing.

(e) Neither Holdings nor any of its Subsidiaries is in breach of or in default under any of
the following agreements (other than a breach or default which has been, or is, contemporaneously
herewith, being, cured or waived):

(i) any Senior Secured Note Document;

(ii) any Revolving Credit Document; or

(iii) any Holdings Credit Document.

 

5

 

6. Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which when taken together shall
constitute but one and the same instrument.

7. Continuing Effect of the Credit Agreement. Except as expressly set forth herein,
this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of, or
otherwise affect the rights and remedies of the Lenders, the Administrative Agent, Holdings or the
Company under the Credit Agreement and shall not alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, all
of which are ratified and affirmed in all respects and shall continue in full force and effect.
Nothing herein shall be deemed to entitle Holdings or the Company to a consent to, or a waiver,
amendment, modification or other change of, any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement in similar or different circumstances. This Agreement
shall apply and be effective only with respect to the provisions of the Credit Agreement
specifically referred to herein. After the effectiveness of this Agreement, any reference to the
Credit Agreement shall mean the Credit Agreement as amended and modified hereby.

 

6

 

8. Release. (a) In consideration of, among other things, Administrative Agent’s and
the Lenders’ execution and delivery of this Agreement (and without prejudice to the continuing
effectiveness of the Loan Documents in accordance with their terms, as amended hereby), each of
Holdings and the Company hereby fully, finally and forever releases, waives, voids, extinguishes,
and discharges each of the Released Parties (as hereinafter defined) from any and all claims
(including, without limitation, crossclaims, counterclaims, and rights of setoff and/or
recoupment), actions, causes of action, suits, liens, damages and consequential damages, demands,
bonds, bills, specialties, controversies, variances, trespasses, judgments, executions, costs,
expenses or other claims of whatever nature or kind, in each case whether liquidated or
unliquidated, fixed or contingent, matured or unmatured, known or unknown, foreseen or unforeseen,
now existing, in law, equity, or otherwise, that Holdings or the Company has had or now has against
any or all of the Lenders and the Administrative Agent (the Lenders and the Administrative Agent
are collectively referred to as the “Lender Parties”) and any Affiliate of any of the
Lender Parties acting in any capacity under the Credit Agreement and other Loan Documents, together
with each of their respective Affiliates, successors and assigns, and the respective predecessors,
successors, assigns and present and former Affiliates (whether by operation of law or otherwise),
and each of their respective members, partners, equityholders, officers, directors, employees,
representatives, advisors, attorneys, agents and professionals, and any Person claiming by or
through any of them in whatever capacity, including other Persons through which such Person may act
(collectively, the “Released Parties”), based in whole or in part on facts, whether or not
now known, in each case that relate to, arise out of or otherwise are in connection with: (i) any
or all of the Loan Documents or transactions contemplated thereby or any actions or omissions in
connection therewith, (ii) any aspect of the dealings or relationships between or among Holdings or
the Company, on the one hand, and any or all of the Released Parties, on the other hand, relating
to any or all of the documents, transactions, actions or omissions referenced in clause (i) hereof,
or (iii) any aspect of the dealings or relationships between or among any or all of the equity
holders of Holdings or the Company, on the one hand, and the Released Parties, on the other hand,
but only to the extent such dealings or relationships relate to any or all of the documents,
transactions, actions or omissions referenced in clause (i) hereof (collectively, the “Released
Claims”).

(b) Each of Holdings and the Company hereby further agrees and covenants not to at
any time sue, instigate, institute, cause to institute, assist in instituting or
permit to be instituted by, through or on its behalf, in whatever capacity
including, but not limited to, through other Persons or entities through which
Holdings and the Company may act, any legal, equitable or administrative proceedings
or to otherwise allege or assert any Released Claims against any of the Released
Parties.

(c) Each of Holdings and the Company further agrees and acknowledges that this
release shall bar and extinguish any and all Released Claims against the Released
Parties whether asserted by, through, on behalf of or under Holdings or the Company,
in whatever capacity, in each case without further act or action under applicable
law, regulation, order, or rule or the vote, consent, authorization or approval of
any Person. In addition, each of Holdings and the Company further agrees and
covenants not to aid, abet, assist, instruct, consent to or counsel any third party
in asserting any Released Claim against any Released Parties.

 

7

 

(d) To the extent that, notwithstanding the New York choice of law provisions in
Section 9 of this Agreement, California law is deemed to apply to the release
provisions set forth herein, Holdings represents and warrants that it is fully aware
of California Civil Code Section 1542, which provides as follows:

SECTION 1542. GENERAL RELEASE. A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED
HIS OR HER SETTLEMENT WITH THE DEBTOR.

Each of Holdings and the Company hereby knowingly and voluntarily waive and
relinquish the provisions, rights and benefits of California Civil Code Section 1542
and all similar federal or state laws, rights, rules, or legal principles of any
other jurisdiction that may be applicable herein, and any rights they may have to
invoke the provisions of any such law now or in the future with respect to the
Released Claims being released pursuant to this Agreement, and each of Holdings and
the Company hereby agrees and acknowledges that this is an essential term of the
releases set forth herein. In connection with such releases, each of Holdings and
the Company acknowledges that it is aware that it or its attorneys or others may
hereafter discover Released Claims or facts presently unknown or unsuspected in
addition to or different from those which they now know or believe to be true with
respect to the subject matter of the Released Claims being released pursuant to this
Agreement. Nevertheless, it is the intention of Holdings and the Company in
executing this Agreement to fully, finally, and forever settle and release the
Released Claims.

(e) The provisions of this Section shall survive the termination of this Agreement,
the Credit Agreement, the other Loan Documents and payment in full of the
Obligations.

(f) None of the foregoing provisions of this Section 8 shall apply in any way to the
right of either of Holdings or the Company to enforce its rights and the obligations
of the Administrative Agent and the Lenders under the Credit Agreement, based upon
facts occurring after the First Amendment Date.

9. Applicable Law. THIS AGREEMENT IS A CONTRACT UNDER THE LAWS OF THE STATE OF NEW
YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID
STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).

10. Headings. Headings herein are included herein for convenience of reference only
and shall not constitute a part hereof for any other purpose or be given any substantive effect.

11. Loan Document. This Agreement shall constitute a Loan Document.

 

8

 

12. Reaffirmation. Each of Holdings and the Company hereby confirms its pledges,
grants of security interests and mortgages and other obligations, as applicable, under and subject
to the terms of each of the other Loan Documents to which it is party, and agrees that,
notwithstanding the effectiveness of this Agreement, such pledges, grants of security interests and
mortgages and other obligations, and the terms of each of the other Loan Documents to which it is a
party, are not impaired or affected in any manner whatsoever and shall continue to be in full force
and effect after giving effect to this Agreement.

13. Direction. By execution and delivery hereof, the Lenders executing this Agreement
hereby authorize and direct the Administrative Agent to execute and deliver this Agreement and
approve the form and substance hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver and First Amendment to
Credit Agreement to be executed and delivered by its officer thereunto duly authorized as of the
date first written above.

	 	 	 	 	 	 	 
	 	 	RM RESTAURANT HOLDING CORP.,

as Holdings	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Signature Page to

Limited Waiver and First Amendment to Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 	 	REAL MEX RESTAURANTS, INC.

as the Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Signature Page to

Limited Waiver and First Amendment to Credit Agreement

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver and First Amendment to
Credit Agreement to be executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

	 	 	 	 	 	 	 
	 	 	WILMINGTON TRUST, NATIONAL ASSOCIATION (AS SUCCESSOR
TO WILMINGTON TRUST FSB),

as Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Signature Page to

Limited Waiver and First Amendment to Credit Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	Z CAPITAL SPECIAL SITUATIONS FUND HOLDINGS I, L.L.C.,
as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	James J. Zenni, Jr.	 	 
	 

	 	 	 	Title:
	 	President of Z Capital Partners,
L.L.C.; 

managing member of 

Z Capital Special Situations UGP, L.L.C.; 

general partner of 

Z Capital Special Situations GP, L.P.; 

general partner of 

Z Capital Special Situations Fund, L.P.; 

managing member of 

Z Capital Special Situations Fund 

Holdings I, L.L.C.	 	 

Signature Page to

Limited Waiver and First Amendment to Credit Agreement

 

 

 

ANNEX A

Specified Defaults

	1.	 	Section 7.2: Cross-default as a result of defaults by the Company under the Senior
Secured Note Indenture which are specifically waived pursuant to the Indenture Amendment.

	2.	 	Section 7.2: Cross-default as a result of defaults under the Holdings Credit Documents
which are specifically waived pursuant to the Holdings Credit Agreement Amendment.

	3.	 	Section 7.2: Cross-default as a result of defaults under the Revolving Credit
Documents which are specifically waived pursuant to the Revolving Credit Agreement
Amendment.

	4.	 	Section 7.5: Breach of Section 5.1(B) as a result of the failure to promptly notify
the Administrative Agent in writing of the occurrence of Defaults and Events of Default set
forth on this Annex A.

	5.	 	Section 7.5: Breach of Section 5.6(c) as a result of defaults under each of the Senior
Secured Note Documents, the Revolving Credit Documents and the Holdings Credit Documents
which defaults are being waived pursuant to the Amendments.

 

 

 

ANNEX B

Closing Checklist

(to be attached)

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