Document:

Exhibit 10.1

                                CREDIT AGREEMENT

                                  BY AND AMONG

                              GRILL CONCEPTS, INC.

                                  AS BORROWER,

                     THE LENDERS THAT ARE SIGNATORIES HERETO

                                 AS THE LENDERS,

                                       AND

                     DIAMOND CREEK INVESTMENT PARTNERS, LLC

                    AS THE ARRANGER AND ADMINISTRATIVE AGENT

                           DATED AS OF MARCH 10, 2006

<PAGE>

                                CREDIT AGREEMENT

     THIS  CREDIT  AGREEMENT (this "Agreement"), is entered into as of March 10,
                                    ---------
2006  by  and  among  the lenders identified on the signature pages hereof (such
lenders,  together  with  their respective successors and permitted assigns, are
referred  to hereinafter each individually as a "Lender" and collectively as the
                                                 ------
"Lenders"), DIAMOND CREEK INVESTMENT PARTNERS, LLC, a Delaware limited liability
 -------
company,  as  the  arranger  and  administrative  agent for the Lenders (in such
capacity,  together  with its successors and assigns in such capacity, "Agent"),
and  GRILL  CONCEPTS,  INC.,  a  Delaware  corporation  ("Borrower").
                                                         ----------

          The  parties  agree  as  follows:

1.     DEFINITIONS  AND  CONSTRUCTION.

     1.1  DEFINITIONS.  As used in the Agreement, the following terms shall have
          -----------
the  following  definitions:

     "Account"  means  an  account  (as  that  term  is  defined  in  the Code).
      -------

     "Account  Debtor"  means any Person who is obligated on an Account, chattel
      ---------------
paper,  or  a  general  intangible.

     "Advances"  has  the  meaning  specified  therefor  in  Section  2.1(a).
      --------                                               ---------------

     "Affiliate" means, as applied to any Person, any other Person who controls,
      ---------
is  controlled by, or is under common control with, such Person. For purposes of
this  definition, "control" means the possession, directly or indirectly through
one  or  more intermediaries, of the power to direct the management and policies
of  a Person, whether through the ownership of Stock, by contract, or otherwise;
provided,  however, that, for purposes of Section 6.13 of the Agreement: (a) any
--------   -------                        ------------
Person  which  owns  directly  or  indirectly  10%  or  more of the Stock having
ordinary  voting  power  for  the  election of directors or other members of the
governing  body of a Person or 10% or more of the partnership or other ownership
interests  of a Person (other than as a limited partner of such Person) shall be
deemed an Affiliate of such Person, (b) each director (or comparable manager) of
a  Person  shall  be  deemed  to  be  an  Affiliate of such Person, and (c) each
partnership  or  joint  venture in which a Person is a partner or joint venturer
shall  be  deemed  an  Affiliate  of  such  Person.

     "Agent"  has  the  meaning  specified  therefor  in  the  preamble  to  the
      -----
Agreement.

     "Agent-Related  Persons"  means  Agent,  together  with  its  Affiliates,
      ----------------------
officers,  directors,  employees,  attorneys,  and  agents.

     "Agent's Account" means the Deposit Account of Agent identified on Schedule
      ---------------
A-1.

     "Agent's  Liens" means the Liens granted by Borrower or its Subsidiaries to
      --------------
Agent  under  the  Loan  Documents.

     "Agreement"  has  the  meaning  specified  therefor in the preamble hereto.
      ---------

     "Assignee"  has  the  meaning  specified  therefor  in  Section  13.1(a).
      --------

     "Assignment  and  Acceptance"  means an Assignment and Acceptance Agreement
      ---------------------------
substantially  in  the  form  of  Exhibit  A-1.
                                  ------------

<PAGE>

     "Authorized  Person"  means  the  chief  executive officer, chief financial
      ------------------
officer,  president,  executive  vice  president,  or corporate secretary of the
Borrower.

     "Availability"  means,  as  of  any  date of determination, the amount that
      ------------
Borrower  is  entitled  to  borrow  as  Advances under Section 2.1 (after giving
effect  to  all then outstanding Obligations and all sublimits and reserves then
applicable  hereunder).

     "Bankruptcy  Code"  means  title 11 of the United States Code, as in effect
      ----------------
from  time  to  time.

     "Base  LIBOR  Rate"  means  the  rate  per  annum  set forth as the "London
      -----------------
Interbank  Offered  Rates  Rate"  in the "Money Rates" column of The Wall Street
Journal, Western Edition as the rate (rounded upwards, if necessary, to the next
1/100%),  2  Business  Days  prior to the commencement of the requested Interest
Period, for a term comparable to the Interest Period and the amount of the LIBOR
Rate  Loan requested (whether as an initial LIBOR Rate Loan or as a continuation
of  a  LIBOR  Rate  Loan  or as a conversion of a Base Rate Loan to a LIBOR Rate
Loan)  by  Borrower  in  accordance  with  the  Agreement.

     "Base  Rate" means, as of any date of determination, the greater of (a) the
      ----------
rate  of interest announced, from time to time, by Bank of America, N.A., or its
successors,  as  its  "prime  rate"  or  "reference  rate"  (the "prime rate" or
"reference  rate"  being  a  rate  (which  is not necessarily the lowest of such
rates)  based  upon  various  factors  including  such  bank's costs and desired
return,  general  economic  conditions  and  other  factors,  and  is  used as a
reference  point for pricing some loans, which may be priced at, above, or below
such  announced  rate)  and  (b)  7.00%.

     "Base Rate Loan" means the portion of the Advances that bears interest at a
      --------------
rate  determined  by  reference  to  the  Base  Rate.

     "Base  Rate  Margin"  means, as of any date of determination, the following
      ------------------
margin based upon the most recent Leverage Ratio calculation; provided, however,
that  (a)  for  the period from the Closing Date through September 30, 2006, the
Base  Rate  Margin shall be at the margin in the row styled "Level III", and (b)
at  any  time  that an Event of Default has occurred (until the first day of the
first  fiscal  quarter  following  the  date  on  which such Default or Event of
Default is no longer continuing) under Section 7.1 of this Agreement or under of
Section  7.2(a)  of  this  Agreement  (with  respect to a breach of Section 6.16
--------------                                                      ------------
only), the Base Rate Margin shall be at the margin in the row styled "Level IV":

<TABLE>
<CAPTION>

Level        Leverage Ratio                               Base Rate Margin
-----        --------------------------------------       ----------------------
<S>                        <C>                                     <C>
I            Less than 1.50 to 1.00                       2.75 percentage points

II           Greater than or equal to 1.50 to 1.00,
             but less than 1.75 to 1.00                   3.00 percentage points

III          Greater than or equal to 1.75 to 1.00
             but less than 2.00 to 1.00                   3.25 percentage points

IV           Greater than or equal to 2.00 to 1.00        3.50 percentage points
</TABLE>

     Except as set forth in the foregoing proviso, the Base Rate Margin shall be
based  upon  the  most  recent  calculation of the Leverage Ratio, which will be
calculated  as  of  the  end  of each fiscal quarter. Except as set forth in the
initial  proviso in this definition, the Base Rate Margin shall be re-determined
each fiscal quarter on the first day of the month following the date of delivery
to  Agent of the certified calculation of the Leverage Ratio pursuant to Section
                                                                         -------
5.3;  provided,  however,  that  if Borrower fails to provide such certification
---

<PAGE>

when  such  certification is due and such failure continues for 3 Business Days,
the  Base Rate Margin shall be set at the margin in the row styled "Level IV" as
of  the first day of the month following the date on which the certification was
required to be delivered until the date on which such certification is delivered
(on  which  date  (but  not retroactively), without constituting a waiver of any
Default  or  Event  of  Default occasioned by the failure to timely deliver such
certification,  the  Base  Rate Margin shall be set at the margin based upon the
Leverage  Ratio  calculation  disclosed  by  such  certification).

     "Benefit  Plan" means a "defined benefit plan" (as defined in Section 3(35)
      -------------
of  ERISA)  for  which Borrower or any Subsidiary or ERISA Affiliate of Borrower
has been an "employer" (as defined in Section 3(5) of ERISA) within the past six
years.

     "Board  of Directors" means the board of directors (or comparable managers)
      -------------------
of  Borrower  or  any  committee thereof duly authorized to act on behalf of the
board  of  directors  (or  comparable  managers).

     "Borrower"  has  the  meaning  specified  therefor  in  the preamble to the
      -------
Agreement.

     "Borrowing"  means a borrowing hereunder consisting of Advances made on the
      ---------
same  day by the Lenders (or Agent on behalf thereof), or by Swing Lender in the
case  of  a  Swing  Loan,  or  by  Agent  in  the case of an Protective Advance.

     "Borrowing  Base"  means,  as  of any date of determination, the result of:
      ---------------

               (a)  2.25  times  TTM  EBITDA,  minus

               (c)  the  aggregate  amount  of  reserves, if any, established by
          Agent  under  Section  2.1(b).
                        --------------

     "Borrowing  Base  Certificate"  means  a certificate in the form of Exhibit
      ----------------------------
B-1.

     "Business  Day"  means any day that is not a Saturday, Sunday, or other day
      -------------
on  which  banks  are  authorized or required to close in the state of New York,
except  that,  if a determination of a Business Day shall relate to a LIBOR Rate
Loan,  the  term  "Business  Day"  also shall exclude any day on which banks are
closed  for  dealings  in  Dollar  deposits  in  the  London  interbank  market.

     "Capital  Expenditures"  means,  with respect to any Person for any period,
      ---------------------
the  aggregate  of  all  expenditures by such Person and its Subsidiaries during
such period that are capital expenditures as determined in accordance with GAAP,
whether  such  expenditures  are  paid  in  cash  or  financed.

     "Capitalized  Lease Obligation" means that portion of the obligations under
      -----------------------------
a  Capital  Lease  that  is  required to be capitalized in accordance with GAAP.

     "Capital  Lease"  means  a  lease  that  is  required to be capitalized for
      --------------
financial  reporting  purposes  in  accordance  with  GAAP.

     "Carry-Over  Amount"  has  the  meaning  specified  therefore  in  Section
      ------------------                                                -------
6.16(b)(iii).
-----------

     "Cash  Equivalents"  means  (a) marketable direct obligations issued by, or
      -----------------
unconditionally guaranteed by, the United States or issued by any agency thereof
and  backed  by  the  full  faith  and credit of the United States, in each case
maturing  within  1  year  from  the date of acquisition thereof, (b) marketable
direct  obligations  issued  by  any state of the United States or any political
subdivision  of  any  such  state or any public instrumentality thereof maturing
within  1  year  from  the  date  of  acquisition  thereof  and,  at the time of
acquisition,  having  one  of  the  two  highest  ratings obtainable from either
Standard  &  Poor's  Rating  Group  ("S&P")  or  Moody's Investors Service, Inc.
("Moody's"),  (c)  commercial paper maturing no more than 270 days from the date

<PAGE>

of creation thereof and, at the time of acquisition, having a rating of at least
A-1  from  S&P  or  at  least  P-1  from Moody's, (d) certificates of deposit or
bankers' acceptances maturing within 1 year from the date of acquisition thereof
issued  by  any  bank organized under the laws of the United States or any state
thereof  having  at the date of acquisition thereof combined capital and surplus
of not less than $250,000,000, (e) Deposit Accounts maintained with (i) any bank
that  satisfies  the  criteria  described in clause (d) above, or (ii) any other
                                             ---------
bank  organized under the laws of the United States or any state thereof so long
as  the  amount  maintained  with  any  such other bank is less than or equal to
$100,000  and  is  insured by the Federal Deposit Insurance Corporation, and (f)
Investments in money market funds substantially all of whose assets are invested
in  the  types  of  assets  described  in  clauses  (a)  through  (e)  above.

     "Cash  Management  Account"  has  the meaning specified therefor in Section
      -------------------------                                          -------
2.7(a).
------

     "Cash  Management  Bank"  has  the  meaning  specified  therefor in Section
      ----------------------                                             -------
2.7(a).
------

     "Change  of  Control"  means  that  (a) any "person" or "group" (within the
      -------------------
meaning  of  Sections 13(d) and 14(d) of the Exchange Act), other than Permitted
Holders,  becomes  the  beneficial  owner  (as  defined  in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 25%, or more, of the Stock of Borrower
having  the right to vote for the election of members of the Board of Directors,
or  (b)  a  majority  of the members of the Board of Directors do not constitute
Continuing  Directors.

     "Class  Action Lawsuit" means that certain lawsuit know as Henry Tellez, on
      ---------------------
behalf of himself and all other similarly situated, and on behalf of the general
public  v.  Grill Concepts, Inc., a California corporation and Does 1-500, filed
in  the Superior Court of the State of California, for the County of Los Angeles
-  Central  Civil  West,  Case  No.  BC  321902,  filed  June  3,  2004.

     "Closing  Date"  means  the  date  of the making of the initial Advance (or
      -------------
other  extension  of  credit)  hereunder.

     "Code"  means  the New York Uniform Commercial Code, as in effect from time
      ----
to  time.

     "Collateral"  means all assets and interests in assets and proceeds thereof
      ----------
now owned or hereafter acquired by Borrower or its Subsidiaries in or upon which
a  Lien  is  granted  under  any  of  the  Loan  Documents.

     "Collateral  Access  Agreement"  means a landlord waiver, bailee letter, or
      -----------------------------
acknowledgement  agreement of any lessor, warehouseman, processor, consignee, or
other Person in possession of, having a Lien upon, or having rights or interests
in  Borrower's  or its Subsidiaries' books and records, Equipment, or Inventory,
in  each  case,  in  form  and  substance  satisfactory  to  Agent.

     "Collections"  means  all cash, checks, notes, instruments, and other items
      -----------
of  payment  (including  insurance  proceeds,  proceeds  of  cash  sales, rental
proceeds,  and  tax  refunds).

     "Commitment"  means,  with  respect to each Lender, its Revolver Commitment
      ----------
and,  with  respect  to all Lenders, their Revolver Commitments, in each case as
such Dollar amounts are set forth beside such Lender's name under the applicable
heading  on  Schedule  C-1 or in the Assignment and Acceptance pursuant to which
             -------------
such  Lender  became  a  Lender  hereunder,  as  such  amounts may be reduced or
increased  from time to time pursuant to assignments made in accordance with the
provisions  of  Section  13.1.
                -------------

     "Compliance  Certificate"  means a certificate substantially in the form of
      -----------------------
Exhibit  C-1  delivered  by  the  chief  financial officer of Borrower to Agent.
------------

     "Continuing  Director"  means  (a) any member of the Board of Directors who
      --------------------
was  a director (or comparable manager) of Borrower on the Closing Date, and (b)
any  individual who becomes a member of the Board of Directors after the Closing

<PAGE>

Date  if such individual was appointed or nominated for election to the Board of
Directors  by  a  majority  of  the Continuing Directors, but excluding any such
individual  originally  proposed  for  election  in  opposition  to the Board of
Directors  in  office  at  the  Closing Date in an actual or threatened election
contest  relating  to  the election of the directors (or comparable managers) of
Borrower  and  whose  initial assumption of office resulted from such contest or
the  settlement  thereof.

     "Control  Agreement"  means  a  control  agreement,  in  form and substance
      ------------------
satisfactory  to  Agent,  executed  and  delivered  by  Borrower  or  one of its
Subsidiaries, Agent, and the applicable securities intermediary (with respect to
a  Securities  Account)  or  bank  (with  respect  to  a  Deposit  Account).

     "Daily  Balance" means, as of any date of determination and with respect to
      --------------
any  Obligation,  the  amount  of  such  Obligation owed at the end of such day.

     "Default"  means  an  event, condition, or default that, with the giving of
notice,  the  passage  of  time,  or  both,  would  be  an  Event  of  Default.

     "Defaulting  Lender"  means  any  Lender that fails to make any Advance (or
      ------------------
other  extension  of  credit)  that it is required to make hereunder on the date
that  it  is  required  to  do  so  hereunder.

     "Defaulting  Lender Rate" means (a) for the first 3 days from and after the
      -----------------------
date  the  relevant  payment  is  due,  the  Base  Rate, and (b) thereafter, the
interest rate then applicable to Advances that are Base Rate Loans (inclusive of
the  Base  Rate  Margin  applicable  thereto).

     "Deposit Account" means any deposit account (as that term is defined in the
      ---------------
Code).

     "Designated  Account"  means  the Deposit Account of Borrower identified on
      -------------------
Schedule  D-1.
-------------

     "Designated  Account  Bank"  has the meaning specified therefor in Schedule
      -------------------------                                         --------
D-1.
---

     "Diamond  Creek"  means  Diamond Creek Investment Partners, LLC, a Delaware
      --------------
limited  liability  company.

     "Dollars"  or  "$"  means  United  States  dollars.
      -------

     "EBITDA"  means,  with  respect  to  any  fiscal period, Borrower's and its
      ------
Subsidiaries' consolidated net earnings (or loss), minus extraordinary gains and
interest  income,  plus  interest  expense,  income  taxes, and depreciation and
amortization  for  such  period,  plus,  settlement and legal costs and expenses
incurred  by  Borrower  or  any of its Subsidiaries in connection with the Class
Action Lawsuit in an aggregate amount not to exceed $1,000,000, in each case, as
determined  in  accordance  with  GAAP.

     "Eligible  Transferee" means (a) a commercial bank organized under the laws
      --------------------
of the United States, or any state thereof, and having total assets in excess of
$250,000,000,  (b)  a  commercial  bank  organized  under  the laws of any other
country  which  is  a  member  of  the Organization for Economic Cooperation and
Development  or  a political subdivision of any such country and which has total
assets  in  excess  of $250,000,000, provided that such bank is acting through a
branch  or agency located in the United States, (c) a finance company, insurance
company,  or  other  financial  institution  or  fund that is engaged in making,
purchasing, or otherwise investing in commercial loans and having (together with
its  Affiliates  and  Related  Funds)  total  assets  (including  assets  under
management)  in  excess  of $250,000,000, (d) any Lender or any Affiliate (other
than  individuals)  or  Related  Fund  of  a  Lender, (e) so long as no Event of
Default  has  occurred and is continuing, any other Person approved by Agent and
Borrower  (which  approval  of  Borrower  shall  not  be  unreasonably withheld,
delayed,  or  conditioned),  and  (f)  during  the  continuation  of an Event of
Default,  any  other  Person  approved  by  Agent.

<PAGE>

     "Environmental  Actions"  means  any  complaint, summons, citation, notice,
      ----------------------
directive,  order,  claim, litigation, investigation, judicial or administrative
proceeding,  judgment,  letter,  or  other  communication  from any Governmental
Authority,  or  any  third  party  involving violations of Environmental Laws or
releases  of  Hazardous Materials from (a) any assets, properties, or businesses
of  Borrower,  its  Subsidiaries,  or any of their predecessors in interest, (b)
from  adjoining  properties  or  businesses,  or (c) from or onto any facilities
which  received  Hazardous Materials generated by Borrower, its Subsidiaries, or
any  of  their  predecessors  in  interest.

     "Environmental  Law"  means  any  applicable  federal,  state,  provincial,
      ------------------
foreign  or  local  statute, law, rule, regulation, ordinance, code, binding and
enforceable guideline, binding and enforceable written policy, or rule of common
law  now  or hereafter in effect and in each case as amended, or any judicial or
administrative  interpretation thereof, including any judicial or administrative
order,  consent  decree  or  judgment,  in  each  case, to the extent binding on
Borrower  or  its  Subsidiaries,  relating to the environment, the effect of the
environment  on employee health, or Hazardous Materials, in each case as amended
from  time  to  time.

     "Environmental  Liabilities"  means  all liabilities, monetary obligations,
      --------------------------
losses,  damages, punitive damages, consequential damages, treble damages, costs
and  expenses  (including  all  reasonable  fees,  disbursements and expenses of
counsel,  experts,  or  consultants,  and costs of investigation and feasibility
studies),  fines, penalties, sanctions, and interest incurred as a result of any
claim  or  demand, or Remedial Action required, by any Governmental Authority or
any  third  party,  and  which  relate  to  any  Environmental  Action.

     "Environmental  Lien" means any Lien in favor of any Governmental Authority
      -------------------
for  Environmental  Liabilities.

     "Equipment"  means  equipment  (as  that  term  is  defined  in  the Code).
      ---------

     "ERISA"  means  the  Employee  Retirement  Income  Security Act of 1974, as
      -----
amended,  and  any  successor  statute  thereto.

     "ERISA Affiliate" means (a) any Person subject to ERISA whose employees are
      ---------------
treated  as  employed  by  the same employer as the employees of Borrower or its
Subsidiaries  under  IRC  Section  414(b),  (b) any trade or business subject to
ERISA  whose  employees  are  treated  as  employed  by the same employer as the
employees  of  Borrower or its Subsidiaries under IRC Section 414(c), (c) solely
for  purposes  of  Section  302  of  ERISA  and  Section  412  of  the  IRC, any
organization subject to ERISA that is a member of an affiliated service group of
which  Borrower or any of its Subsidiaries is a member under IRC Section 414(m),
or  (d)  solely for purposes of Section 302 of ERISA and Section 412 of the IRC,
any  Person  subject to ERISA that is a party to an arrangement with Borrower or
any of its Subsidiaries and whose employees are aggregated with the employees of
Borrower  or  its  Subsidiaries  under  IRC  Section  414(o).

     "Event  of  Default"  has  the  meaning  specified  therefor  in Section 7.
      ------------------                                              ----------

     "Excess  Availability"  means,  as of any date of determination, the amount
      --------------------
equal  to Availability minus the aggregate amount, if any, of all trade payables
of  Borrower  and  its  Subsidiaries  aged  in  excess of historical levels with
respect  thereto  and  all  book  overdrafts of Borrower and its Subsidiaries in
excess  of historical practices with respect thereto, in each case as determined
by  Agent  in  its  Permitted  Discretion.

     "Exchange Act" means the Securities Exchange Act of 1934, as in effect from
      ------------
time  to  time.

     "Excluded  Taxes" means (a) all taxes imposed on or by reference to the net
      ---------------
income  of  the  agent  or any Lender, including franchise taxes, taxes on doing
business,  taxes  measured by capital or net worth and branch profits or similar

<PAGE>

taxes  imposed  (i)  by the United States or any political subdivision or taxing
authority  thereof,  (ii)  by  any  other  jurisdiction  or  by  any  political
subdivision  or  taxing  authority  thereof under the laws of which the Agent or
such  Lender  is organized, has its principal place of business or maintains its
lending  office  or  (iii) by any other jurisdiction or political subdivision or
taxing  authority  thereof  solely as a result of a present or former connection
between  Agent  or such Lender and such jurisdiction or political subdivision or
taxing  authority (other than any such connection arising from the Agent or such
Lender  having executed delivered, or performed its obligations or performed its
obligations  or  received  payment under or enforced, any of the Loan Documents)
and  (b)  all  U.S.  taxes that are required to be deducted or withheld from any
payment  under any of the Loan Documents because of the failure of the Lender to
comply  with  Section  15.11  (b).
              -------------------

     "Existing  Lender"  means  Union  Bank  of  California,  N.A.
      ----------------

     "Existing  Letters  of  Credit"  means that certain letter of credit number
      -----------------------------
306S235563  issued  by  the  Existing Lender in the face amount of $1,010,000 in
support  of  certain  workers'  compensation liabilities of the Borrower and its
Subsidiaries,  and  any  letter  of  credit  issued  in  replacement  thereof.

     "Existing  Loan  Documents"  means  (i) that certain Small Business Banking
      -------------------------
Agreement,  dated  May 24, 2004, by and between Borrower and Existing Lender, as
amended from time to time, (ii) that certain Covenant Agreement, dated as of May
24,  2005,  between  Borrower and Existing Lender, and (iii) all other documents
entered  into in connection with the documents described in clauses (i) and (ii)
above.

     "Fee  Letter"  means that certain fee letter between Borrower and Agent, in
      -----------
form  and  substance  satisfactory  to  Agent.

     "Four  Wall Cash Flow" means, with respect to any fiscal period, Borrower's
      --------------------
and  its  Subsidiaries' consolidated net sales plus management and license fees,
less cost of sales and restaurant operating expenses (excluding depreciation and
amortization)  for  such  period, in each case, as determined in accordance with
GAAP.

     "Funding  Date"  means  the  date  on  which  a  Borrowing  occurs.
      -------------

     "Funding Losses" has the meaning specified therefor in Section 2.13(b)(ii).
      --------------                                        ------------------

     "GAAP"  means  generally  accepted  accounting principles as in effect from
      ----
time  to  time  in  the  United  States,  consistently  applied.

     "Governing Documents" means, with respect to any Person, the certificate or
      -------------------
articles  of  incorporation,  by-laws, or other organizational documents of such
Person.

     "Governmental  Authority"  means  any  federal,  state,  local,  or  other
      -----------------------
governmental  or  administrative  body,  instrumentality,  board, department, or
agency  or  any court, tribunal, administrative hearing body, arbitration panel,
commission,  or  other  similar  dispute-resolving  panel  or  body.

     "Growth  Capital  Expenditures" means Capital Expenditures for acquiring or
      -----------------------------
opening  new Restaurant locations or in connection with Major Renovations of any
Restaurant;  provided,  however,  that  expenditures  made  to  make  leasehold
improvements in connection with the acquisition or opening of any new Restaurant
shall not be considered Capital Expenditures to the extent such expenditures are
reimbursed  (other  than  by  way  of  discounts on future rent) by the landlord
within  120  days  after  the  date  such  expenditures  are  made.

     "Guarantors"  means  (a)  each Subsidiary identified on Schedule G-1 hereto
      ----------                                             ------------
and  (b)  each  other Person who guarantees all or any part of the Obligations ,
and  "Guarantor"  means  any  one  of  them.
      ---------

<PAGE>

     "Guaranty"  means  that  certain  general  continuing guaranty executed and
      --------
delivered  by  each  Guarantor  in favor of Agent, for the benefit of the Lender
Group,  in  form  and  substance  satisfactory  to  Agent.

     "Hazardous  Materials"  means (a) substances that are defined or listed in,
      --------------------
or  otherwise  classified  pursuant  to,  any  applicable laws or regulations as
"hazardous  substances,"  "hazardous  materials,"  "hazardous  wastes,"  "toxic
substances,"  or  any  other  formulation  intended to define, list, or classify
substances  by  reason  of  deleterious  properties  such  as  ignitability,
corrosivity,  reactivity,  carcinogenicity,  reproductive  toxicity,  or  "EP
toxicity",  (b)  oil,  petroleum,  or petroleum derived substances, natural gas,
natural  gas liquids, synthetic gas, drilling fluids, produced waters, and other
wastes associated with the exploration, development, or production of crude oil,
natural gas, or geothermal resources, (c) any flammable substances or explosives
or  any  radioactive  materials,  and  (d)  asbestos  in  any form or electrical
equipment  that  contains  any  oil  or  dielectric  fluid  containing levels of
polychlorinated  biphenyls  in  excess  of  50  parts  per  million.

     "Hedge Agreement" means any and all agreements or documents now existing or
      ---------------
hereafter  entered  into by Borrower or any of its Subsidiaries that provide for
an  interest rate, credit, commodity or equity swap, cap, floor, collar, forward
foreign  exchange transaction, currency swap, cross currency rate swap, currency
option,  or  any  combination  of,  or  option with respect to, these or similar
transactions,  for the purpose of hedging Borrower's or any of its Subsidiaries'
exposure  to  fluctuations in interest or exchange rates, loan, credit exchange,
security,  or  currency  valuations  or  commodity  prices.

     "Holdout  Lender"  has  the  meaning specified therefor in Section 14.2(a).
      ---------------                                           --------------

     "HRP  Investment"  means  those certain Restaurants that are (i) managed by
      ---------------
Grill Concepts Management, Inc., a California corporation, Grill Concepts, Inc.,
a  California corporation, or HRP Restaurants, (ii) not owned by Borrower or any
Guarantor,  and  (iii)  located  in  Burbank, Georgetown, Portland, Houston, San
Francisco,  or  Long  Beach.

     "HRP  Restaurants"  means  Hotel  Restaurant  Properties,  Inc.
      ----------------

     "Inactive  Subsidiaries"  means  each  of  (a) Uno Concepts of Cherry Hill,
      ----------------------
Inc., a New Jersey corporation, (b) CTS, Inc., a New Jersey corporation, (c) Uno
Concepts  of  New Jersey, Inc., a New Jersey corporation, (d) Alcoli 66, Inc., a
New  Jersey  corporation,  and (e) Uno Concepts, Inc., a New Jersey corporation.

     "Indebtedness"  means  (a)  all  obligations  for  borrowed  money, (b) all
      ------------
obligations  evidenced by bonds, debentures, notes, or other similar instruments
and  all  reimbursement  or  other  obligations in respect of letters of credit,
bankers  acceptances,  interest rate swaps, or other financial products, (c) all
obligations as a lessee under Capital Leases, (d) all obligations or liabilities
of  others  secured  by  a  Lien  on  any asset of a Person or its Subsidiaries,
irrespective  of  whether  such  obligation  or  liability  is  assumed, (e) all
obligations  to  pay  the  deferred  purchase  price of assets (other than trade
payables incurred in the ordinary course of business and repayable in accordance
with  customary  trade  practices),  (f)  all  obligations  owing  under  Hedge
Agreements,  and  (g)  any  obligation  guaranteeing  or  intended  to guarantee
(whether  directly  or  indirectly guaranteed, endorsed, co-made, discounted, or
sold  with  recourse)  any  obligation  of  any  other  Person  that constitutes
Indebtedness  under  any  of  clauses  (a)  through  (f)  above.

     "Indemnified  Liabilities"  has  the  meaning specified therefor in Section
      ------------------------                                           -------
10.3.
----

     "Indemnified  Person"  has  the meaning specified therefor in Section 10.3.
      -------------------                                          -------------

     "Insolvency  Proceeding"  means  any proceeding commenced by or against any
      ----------------------
Person  under  any  provision of the Bankruptcy Code or under any other state or
federal  bankruptcy or insolvency law, assignments for the benefit of creditors,
formal or informal moratoria, compositions, extensions generally with creditors,
or  proceedings  seeking  reorganization,  arrangement, or other similar relief.

<PAGE>

     "Intercompany  Subordination  Agreement"  means  a  subordination agreement
      --------------------------------------
executed  and  delivered  by  Borrower, each of its Subsidiaries, and Agent, the
form  and  substance  of  which  is  satisfactory  to  Agent.

     "Interest  Expense"  means,  for  any period, the aggregate of the interest
      -----------------
expense  of  Borrower  and  its  Subsidiaries  for  such period, determined on a
consolidated  basis  in  accordance  with  GAAP.

     "Interest  Period"  means,  with  respect to each LIBOR Rate Loan, a period
      ----------------
commencing  on  the  date  of  the  making  of  such  LIBOR  Rate  Loan  (or the
continuation  of  a  LIBOR  Rate Loan or the conversion of a Base Rate Loan to a
LIBOR  Rate  Loan)  and  ending  1,  2,  or  3 or 6 months thereafter; provided,
                                                                       --------
however,  that  (a)  if  any  Interest  Period  would end on a day that is not a
-------
Business Day, such Interest Period shall be extended (subject to clauses (c)-(e)
below)  to  the  next  succeeding Business Day, (b) interest shall accrue at the
applicable  rate  based  upon the LIBOR Rate from and including the first day of
each  Interest  Period  to,  but excluding, the day on which any Interest Period
expires,  (c) any Interest Period that would end on a day that is not a Business
Day  shall  be extended to the next succeeding Business Day unless such Business
Day  falls  in  another calendar month, in which case such Interest Period shall
end  on  the next preceding Business Day, (d) with respect to an Interest Period
that  begins on the last Business Day of a calendar month (or on a day for which
there  is  no  numerically corresponding day in the calendar month at the end of
such Interest Period), the Interest Period shall end on the last Business Day of
the  calendar  month  that is 1, 2, or 3 or 6 months after the date on which the
Interest Period began, as applicable, and (e) Borrower may not elect an Interest
Period  which  will  end  after  the  Maturity  Date.

"Inventory"  means  inventory  (as  that  term  is  defined  in  the  Code).
 ---------

     "Investment"  means,  with  respect  to  any Person, any investment by such
      ----------
Person  in  any  other  Person  (including  Affiliates)  in  the  form of loans,
guarantees,  advances,  or  capital  contributions  (excluding  (a)  commission,
travel,  and  similar  advances to officers and employees of such Person made in
the  ordinary  course  of  business,  and  (b) bona fide Accounts arising in the
ordinary  course  of business consistent with past practice), purchases or other
acquisitions  of  Indebtedness, Stock, or all or substantially all of the assets
of such other Person (or of any division or business line of such other Person),
and  any other items that are or would be classified as investments on a balance
sheet  prepared  in  accordance  with  GAAP.

     "IRC"  means  the  Internal Revenue Code of 1986, as in effect from time to
      ---
time.

     "Joint  Venture  Parties"  means  each of: (a) Continental Plaza Restaurant
      -----------------------
Corp.,  a  California  corporation,  (b)  Michigan  Avenue  Group,  a  general
partnership,  (c)  TH  Grill,  Inc.,  a  Delaware  corporation,  (d) Light Tower
Restaurant  Associates,  LLC,  a  California  limited liability company, and (e)
Downtown  Grill  Investors,  LLC  a  California  limited  liability  company.

     "Joint  Venture Subsidiaries" means each of the following entities: (a) The
      ---------------------------
Daily  Grill  at  Continental Park, LLC, a California limited liability company,
(b)  Chicago  -  The  Grill  on  the  Alley,  LLC, an Illinois limited liability
company,  (c)  San  Jose Grill, LLC, a California limited liability company, (d)
The  Grill  on  Hollywood,  LLC, a California limited liability company, (e) 612
Flower  Daily  Grill,  LLC,  a  California  limited  liability  company, and (f)
Universal  Grill  Concepts,  Inc.,  a California corporation; and "Joint Venture
                                                                   -------------
Subsidiary"  means  any  one  of  them.
----------

     "Lender"  and  "Lenders"  have  the  respective  meanings  set forth in the
      ------         -------
preamble  to  the  Agreement, and shall include any other Person made a party to
the  Agreement  in  accordance  with  the  provisions  of  Section  13.1.
                                                           -------------

     "Lender  Group"  means,  individually and collectively, each of the Lenders
      -------------
and  Agent.

<PAGE>

     "Lender  Group  Expenses" means all (a) costs or expenses (including taxes,
      -----------------------
and  insurance  premiums)  required  to  be paid by Borrower or its Subsidiaries
under  any  of  the  Loan  Documents that are paid, advanced, or incurred by the
Lender Group, (b) actual out-of-pocket fees or charges paid or incurred by Agent
in  connection  with  the  Lender  Group's  transactions  with  Borrower  or its
Subsidiaries,  including,  fees  or  charges  for  photocopying,  notarization,
couriers  and  messengers,  telecommunication, public record searches (including
tax  lien,  litigation,  and UCC searches and including searches with the patent
and  trademark  office,  the  copyright  office,  or  the  department  of  motor
vehicles),  filing,  recording,  publication,  appraisal  (including  periodic
collateral  appraisals  or  business  valuations  to  the extent of the fees and
charges  (and  up  to the amount of any limitation) contained in the Agreement),
real  estate  surveys,  real  estate  title  policies  and  endorsements,  and
environmental  audits,  (c)  costs  and  expenses  incurred  by  Agent  in  the
disbursement  of funds to Borrower or other members of the Lender Group (by wire
transfer or otherwise), (d) charges paid or incurred by Agent resulting from the
dishonor  of  checks,  (e) reasonable costs and expenses paid or incurred by the
Lender  Group  to  correct  any  default  or  enforce  any provision of the Loan
Documents,  or  in  gaining  possession  of,  maintaining, handling, preserving,
storing,  shipping,  selling,  preparing  for  sale,  or advertising to sell the
Collateral,  or  any  portion  thereof,  irrespective  of  whether  a  sale  is
consummated,  (f) audit fees and expenses of Agent related to any inspections or
audits  to  the  extent  of  the  fees  and charges (and up to the amount of any
limitation)  contained  in  the  Agreement  or  any  other  Loan  Document,  (g)
reasonable  costs  and  expenses of third party claims or any other suit paid or
incurred  by the Lender Group in enforcing or defending the Loan Documents or in
connection  with  the  transactions  contemplated  by  the Loan Documents or the
Lender  Group's  relationship with Borrower or any its Subsidiaries, (h) Agent's
reasonable  costs  and expenses (including attorneys fees) incurred in advising,
structuring,  drafting,  reviewing,  administering, syndicating, or amending the
Loan  Documents, and (i) Agent's and each Lender's reasonable costs and expenses
(including  attorneys,  accountants,  consultants,  and  other advisors fees and
expenses)  incurred in terminating, enforcing (including attorneys, accountants,
consultants,  and other advisors fees and expenses incurred in connection with a
"workout," a "restructuring," or an Insolvency Proceeding concerning Borrower or
its  Subsidiaries or in exercising rights or remedies under the Loan Documents),
or  defending the Loan Documents, irrespective of whether suit is brought, or in
taking  any  Remedial  Action  concerning  the  Collateral. The foregoing to the
contrary  notwithstanding,  the  Borrower's  obligation  to reimburse the Lender
Group  for  attorney's  fees prior to the occurrence of a Default or an Event of
Default  shall be limited to the attorney's fees of one law firm for all members
of  the  Lender  Group.

     "Lender-Related  Person"  means,  with  respect to any Lender, such Lender,
      ----------------------
together  with  such  Lender's  Affiliates,  officers,  directors,  employees,
attorneys,  and  agents.

     "Leverage Ratio" means, with respect to Borrower and its Subsidiaries as of
      --------------
any  date  of determination, the ratio of (a) Revolver Usage as of such date, to
(b)  TTM  EBITDA  as  of  such  date.

     "Liabilities"  has  the  meaning  set  forth  in  Section  2.15.
      -----------                                      -------------

     "LIBOR  Deadline" has the meaning specified therefor in Section 2.13(b)(i).
      ---------------                                        ------------------

     "LIBOR  Notice"  means  a  written  notice  in  the  form  of  Exhibit L-1.
      -------------                                                 -----------

     "LIBOR  Option"  has  the  meaning  specified  therefor in Section 2.13(a).
      -------------                                             --------------

     "LIBOR  Rate" means, for each Interest Period for each LIBOR Rate Loan, the
      -----------
greater  of  (a)  the  rate  per  annum determined by Agent (rounded upwards, if
necessary,  to  the  next  1/100%)  by dividing (i) the Base LIBOR Rate for such
Interest  Period,  by  (ii) 100% minus the Reserve Percentage and (b) 4.00%. The
LIBOR Rate shall be adjusted on and as of the effective day of any change in the
Reserve  Percentage.

     "LIBOR Rate Loan" means each portion of an Advance that bears interest at a
      ---------------
rate  determined  by  reference  to  the  LIBOR  Rate.

<PAGE>

     "LIBOR  Rate  Margin" means, as of any date of determination, the following
      -------------------
margin based upon the most recent Leverage Ratio calculation; provided, however,
that  (a)  for  the period from the Closing Date through September 30, 2006, the
LIBOR  Rate Margin shall be at the margin in the row styled "Level III", and (b)
at  any time that a Default or an Event of Default has occurred (until the first
day  of  the  first  fiscal  quarter following the date on which such Default or
Event of Default is no longer continuing) under Section 7.1 of this Agreement or
under  of  Section 7.2(a) of this Agreement (with respect to a breach of Section
           -------------                                                 -------
6.16  only),  the  LIBOR  Rate  Margin  shall be at the margin in the row styled
----
"Level  IV":

<CAPTION.
<TABLE>

Level        Leverage Ratio                               LIBOR Rate Margin
-----        ---------------------------------------      ----------------------
<S>                        <C>                                 <C>
I            Less than 1.50 to 1.00                       5.50 percentage points

II           Greater than or equal to 1.50 to 1.00,
             but less than 1.75 to 1.00                   5.75 percentage points

III          Greater than or equal to 1.75 to 1.00
             but less than 2.00 to 1.00                   6.00 percentage points

IV           Greater than or equal to 2.00 to 1.00        6.25 percentage points
</TABLE>

     Except  as  set forth in the foregoing proviso, the LIBOR Rate Margin shall
be  based  upon the most recent calculation of the Leverage Ratio, which will be
calculated  as  of  the  end  of each fiscal quarter. Except as set forth in the
initial proviso in this definition, the LIBOR Rate Margin shall be re-determined
each fiscal quarter on the first day of the month following the date of delivery
to  Agent of the certified calculation of the Leverage Ratio pursuant to Section
                                                                         -------
5.3;  provided,  however,  that  if Borrower fails to provide such certification
---
when  such  certification is due and such failure continues for 3 Business Days,
the LIBOR Rate Margin shall be set at the margin in the row styled "Level IV" as
of  the first day of the month following the date on which the certification was
required to be delivered until the date on which such certification is delivered
(on  which  date  (but  not retroactively), without constituting a waiver of any
Default  or  Event  of  Default occasioned by the failure to timely deliver such
certification,  the  LIBOR Rate Margin shall be set at the margin based upon the
Leverage  Ratio  calculation  disclosed  by  such  certification).

     "Lien"  means any interest in an asset securing an obligation owed to, or a
      ----
claim  by, any Person other than the owner of the asset, irrespective of whether
(a)  such  interest  is  based on the common law, statute, or contract, (b) such
interest  is recorded or perfected, and (c) such interest is contingent upon the
occurrence  of  some  future  event  or  events  or the existence of some future
circumstance or circumstances. Without limiting the generality of the foregoing,
the  term "Lien" includes the lien or security interest arising from a mortgage,
deed  of  trust,  encumbrance,  notice  of  Lien,  levy  or  assessment, pledge,
hypothecation,  assignment, deposit arrangement, security agreement, conditional
sale  or  trust  receipt, or from a lease, consignment, or bailment for security
purposes  and  also includes reservations, exceptions, encroachments, easements,
rights-of-way,  covenants,  conditions,  restrictions,  leases,  and other title
exceptions  and  encumbrances  affecting  Real  Property.

     "Liquor  License"  has  the  meaning  specified  therefor  in Section 4.21.
      ---------------                                              ------------

     "Loan  Account"  has  the  meaning  specified  therefor  in  Section  2.10.
      -------------                                               -------------

     "Loan  Documents"  means the Agreement, any Borrowing Base Certificate, the
      ---------------
Control Agreements, the Fee Letter, the Guaranty, the Intercompany Subordination
Agreement, the Security Agreement, the Trademark Security Agreement, any note or
notes  executed  by  Borrower  in connection with the Agreement and payable to a

<PAGE>

member  of the Lender Group, and any other agreement entered into, now or in the
future,  by  Borrower  and  the  Lender  Group in connection with the Agreement.

     "MAG  Convertible  Note"  means  that  certain  convertible promissory note
      ----------------------
issued  by  Chicago - The Grill on the Alley LLC in favor of The Michigan Avenue
Group  on  February  1,  1999  in  an  aggregate  principal amount not to exceed
$1,699,000.

     "MAG  Guaranty"  means  that  certain  Guaranty, dated February 1, 1999, by
      -------------
Borrower  and  Grill  Concepts,  Inc., a California corporation, in favor of The
Michigan  Avenue  Group.

     "Maintenance  Capital  Expenditures"  means  Capital  Expenditures  for
      ----------------------------------
remodeling  (other  than  Major  Renovations) or maintaining existing Restaurant
locations  and  for  replacing  Equipment  at  existing  Restaurants.

     "Major  Renovations"  means  renovations  or  remodels  of  any  existing
      ------------------
Restaurant  involving  capital  expenditures  of  $250,000  or  more.

     "Managed  Account"  means  any  Deposit  Account or Securities Account that
      ----------------
meets all of the following criteria: (a) such Deposit Account is associated with
a  Restaurant  that  is (x) an HRP Investment or a Joint Venture Subsidiary, and
(y) is managed by, but not owned by, a Borrower or a Guarantor, (b) such Deposit
Account  is  not  owned  by or in the name of Borrower or any Guarantor, (c) the
funds  in  such Deposit Account belong to the owner of the applicable Restaurant
and  are  not  commingled  with  assets  of  the  Borrower  or  any  Guarantor.

     "Management  Agreements"  means  each  of  the  following  agreements:  (i)
      ----------------------
Management  Agreement, dated June 17, 1997, by and between San Jose Grill, LLC a
California  limited  liability  company,  and  the  Borrower;  (ii)  Management
Agreement  dated  July  26,  2001  by and between The Grill on Hollywood, LLC, a
California  limited  liability  company  and  the  Borrower;  (iii)  Daily Grill
Restaurant  Management  Agreement  dated  as of May 28, 2002, by and between The
Daily Grill at Continental Park, LLC, a California limited liability company and
Grill  Concepts Management, Inc., a California corporation; and (iv) Daily Grill
Restaurant  Management  Agreement  made  as of June 29, 2004, by and between 612
Flower  Daily  Grill,  LLC,  a  California  limited  liability company and Grill
Concepts  Management,  Inc.,  a  California  corporation.

     "Material  Adverse  Change"  means  (a)  a  material  adverse change in the
      -------------------------
business,  prospects,  operations, results of operations, assets, liabilities or
condition  (financial or otherwise) of Borrower and its Subsidiaries, taken as a
whole,  (b) a material impairment of Borrower's and its Subsidiaries' ability to
perform  their obligations under the Loan Documents to which they are parties or
of  the  Lender  Group's  ability to enforce the Obligations or realize upon the
Collateral,  or  (c)  a material impairment of the enforceability or priority of
the  Agent's  Liens  with  respect to the Collateral as a result of an action or
failure  to  act  on  the  part  of  Borrower  or  its  Subsidiaries.

     "Material  Contract"  means,  collectively,  (i) each Management Agreement,
      ------------------
(ii)  that  certain  Sysco  Corporation  Master Distribution Agreement for Grill
Concepts,  Inc.,  dated  as  of  October 26, 2005, (iii) that certain collective
bargaining  agreement  with  the Restaurant Employees Union Local No. 1, for the
Grill on the Alley restaurant located at 909 N. Michigan Ave., Chicago, Illinois
60611,  which  expired  August  31,  2005,  but renews from year to year, unless
terminated  by  either  party by notice not more than 120 days, nor less than 90
days,  prior  to  August 31, 2005, or any anniversary thereof, which the parties
anticipate will be replaced by a collective bargaining agreement expiring August
31,  2008,  but  renewable  from  year  to year, and (iv) each other contract or
agreement to which such Borrower or any of its Subsidiaries is a party involving
aggregate consideration payable to or by Borrower or such Subsidiary of $250,000
or  more  (other  than purchase orders in the ordinary course of the business of
such  Person or such Subsidiary and other than contracts that by their terms may
be  terminated  by  such  Person  or  Subsidiary  in  the ordinary course of its
business upon less than 60 days notice without penalty or premium) in any fiscal
year.

<PAGE>

     "Maturity  Date"  has  the  meaning  specified  therefor  in  Section  3.4.
      -------------                                                -------------

     "Maximum  Revolver  Amount"  means  $8,000,000.
      -------------------------

     "Moody's"  has  the  meaning  specified  therefor in the definition of Cash
      -------
Equivalents.

     "Obligations"  means  all  loans,  Advances,  debts,  principal,  interest
      -----------
(including  any  interest  that  accrues after the commencement of an Insolvency
Proceeding,  regardless of whether allowed or allowable in whole or in part as a
claim  in any such Insolvency Proceeding), contingent reimbursement obligations,
premiums,  liabilities (including all amounts charged to Borrower's Loan Account
pursuant  hereto),  obligations  (including  indemnification  obligations), fees
(including  the  fees  provided  for  in the Fee Letter), charges, costs, Lender
Group  Expenses  (including  any  fees  or  expenses  that  accrue  after  the
commencement  of  an  Insolvency  Proceeding,  regardless  of whether allowed or
allowable  in  whole  or  in part as a claim in any such Insolvency Proceeding),
lease  payments,  guaranties,  covenants, and duties of any kind and description
owing  by  Borrower  to  the  Lender  Group pursuant to or evidenced by the Loan
Documents  and  irrespective of whether for the payment of money, whether direct
or  indirect,  absolute  or  contingent,  due  or to become due, now existing or
hereafter  arising,  and  including all interest not paid when due and all other
expenses  or  other amounts that Borrower is required to pay or reimburse by the
Loan  Documents,  by law, or otherwise. Any reference in the Agreement or in the
Loan  Documents  to the Obligations shall include all or any portion thereof and
any  extensions, modifications, renewals, or alterations thereof, both prior and
subsequent  to  any  Insolvency  Proceeding.

     "Originating Lender" has the meaning specified therefor in Section 13.1(e).
      ------------------                                        ---------------

     "Overadvance"  has  the  meaning  specified  therefor  in  Section  2.5.
      -----------                                               ------------

     "Patent  Security  Agreement"  has  the  meaning  specified therefor in the
      ---------------------------
Security  Agreement.

     "Participant"  has  the  meaning  specified  therefor  in  Section 13.1(e).
      -----------                                               ---------------

     "Participant  Register"  has  the  meaning  set  forth  in Section 13.1(i).
      ---------------------                                     ---------------

     "Permitted  Discretion"  means  a  determination  made  in  the exercise of
      ---------------------
reasonable  (from  the  perspective  of  a  secured asset-based lender) business
judgment.

     "Permitted Dispositions" means (a) sales or other dispositions of Equipment
      ----------------------
that  is  substantially  worn,  damaged,  or  obsolete in the ordinary course of
business,  (b)  sales of Inventory to buyers in the ordinary course of business,
(c)  the  use  or  transfer of money or Cash Equivalents in a manner that is not
prohibited  by  the  terms of the Agreement or the other Loan Documents, (d) the
licensing,  on  a  non-exclusive  basis, of patents, trademarks, copyrights, and
other intellectual property rights in the ordinary course of business, (e) sales
or  other  dispositions  of assets from Borrower or any Guarantor to Borrower or
any  Guarantor, (f) the leasing or subleasing of real property, (g) dispositions
of  property  in exchange for credit (in an amount not less than the fair market
value  of  such  property)  against  the  purchase  price of similar replacement
property,  and  (h) dispositions of property not otherwise permitted pursuant to
clauses  (a) through (g) above so long as the aggregate fair market value of the
assets  and  property  that  are the subject of such sales or other dispositions
does  not  exceed  $250,000  in  any  12-month  period.

     "Permitted  Holder"  means  the  Person  identified  on  Schedule  P-1.
      -----------------

     "Permitted Investments" means (a) Investments in cash and Cash Equivalents,
      ---------------------
(b)  Investments  in negotiable instruments for collection, (c) advances made in
connection  with  purchases  of  goods  or  services  in  the ordinary course of
business,  (d)  Investments received in settlement of amounts due to Borrower or
any  of its Subsidiaries effected in the ordinary course of business or owing to

<PAGE>

Borrower  or  any  of  its  Subsidiaries  as  a result of Insolvency Proceedings
involving  an  Account Debtor or upon the foreclosure or enforcement of any Lien
in  favor  of Borrower or its Subsidiaries, (e) Investments owned on the Closing
Date  and  set forth on Schedule P-3, (f) the buyout of HRP Restaurants provided
                        ------------
that  (i)  the  aggregate consideration payable in connection therewith does not
exceed  $2,700,000,  (ii)  no  Default  or  Event of Default has occurred and is
continuing  or  would  result  therefrom, (iii) Borrower shall have delivered to
Agent  all  documents  executed  in  connection  with  such  acquisition,  which
documents  shall  be satisfactory to Agent in its Permitted Discretion, and (iv)
the Borrower shall have delivered all items required pursuant to Section 5,16 in
                                                                 ------------
connection  with the acquired company, (f) loans or advances to employees of the
Borrower  or any Guarantor for moving, travel, or emergency expenses and similar
ordinary  business  purposes,  in  an  aggregate  amount  not  to exceed $25,000
outstanding  at  any  time,  (g) other Investments in an aggregate amount not to
exceed  $250,000  during  the  term  of the Agreement, and (h) the Investment by
Borrower  in  the  MAG  Note  as  contemplated  pursuant  to  Section  3.3(a).
                                                              ---------------

"Permitted  Liens"  means (a) Liens held by Agent to secure the Obligations, (b)
 ----------------
Liens  for  unpaid  taxes,  assessments, or other governmental charges or levies
that  either  (i)  are not yet delinquent, or (ii) do not have priority over the
Agent's  Liens  and  the underlying taxes, assessments, or charges or levies are
the  subject of Permitted Protests, (c) judgment Liens that do not constitute an
Event  of  Default  under  Section  7.7 of the Agreement, (d) Liens set forth on
                           ------------
Schedule  P-2, provided that any such Lien only secures the Indebtedness that it
-------------
secures on the Closing Date and any Refinancing Indebtedness in respect thereof,
(e) the interests of lessors under operating leases, (f) purchase money Liens or
the  interests  of lessors under Capital Leases to the extent that such Liens or
interests  secure  Permitted Purchase Money Indebtedness and so long as (i) such
Lien  attaches only to the asset purchased or acquired and the proceeds thereof,
and  (ii)  such  Lien only secures the Indebtedness that was incurred to acquire
the  asset  purchased  or  acquired  or  any Refinancing Indebtedness in respect
thereof,  (g)  Liens  arising  by  operation  of  law  in favor of warehousemen,
landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred in
the  ordinary  course  of  business  and not in connection with the borrowing of
money,  and  which Liens either (i) are for sums not yet delinquent, or (ii) are
the  subject of Permitted Protests, (h) Liens on amounts deposited in connection
with  obtaining worker's compensation or other unemployment insurance, (i) Liens
on  amounts  deposited  in  connection with the making or entering into of bids,
tenders, or leases in the ordinary course of business and not in connection with
the borrowing of money, (j) Liens on amounts deposited as security for surety or
appeal  bonds  in connection with obtaining such bonds in the ordinary course of
business,  (k)  with respect to any Real Property, easements, rights of way, and
zoning  restrictions  that do not materially interfere with or impair the use or
operation  thereof,  (l)  customary  rights  of  setoff  or  bankers' liens upon
deposits  of  cash in favor of banks or other depository institutions, solely to
the  extent incurred in connection with the maintenance of such deposit accounts
in  the  ordinary  course  of  business (and subject to the terms of any Control
Agreement  executed  with  respect  thereto), (m) leases or subleases granted to
other  Persons  not  interfering in any material respect with the conduct of the
business  of  the Borrower or any Guarantor, (n) Liens of the Existing Lender on
cash  collateral  and/or  certificates  of deposit in an aggregate amount not to
exceed  105% of the undrawn amount of the Existing Letter of Credit, which Liens
secure  the  Borrower's  obligations  under  Indebtedness  permitted pursuant to
Section  6.1(j);  and  (o)  until  the earlier to occur of (A) the fifteenth day
--------------
after  the Closing Date and (B) the satisfaction of the condition subsequent set
forth  in  Section  3.3(a),  Liens  in favor of The Michigan Avenue Group on the
           --------------
assets  of  the  Borrower  and  Grill  Concepts,  Inc.,  which  Liens secure the
obligations  under  the  MAG  Guaranty.

     "Permitted  Merger"  means  the  merger  of  (a) any Guarantor into another
      -----------------
Guarantor,  (b)  so  long as the Borrower is the continuing or surviving Person,
any  Guarantor into the Borrower, or (c) any Subsidiary that is not the Borrower
or  a  Guarantor  into  any  other  Subsidiary  that  is  not  the Borrower or a
Guarantor,  in the case of each of clauses (a), (b), and (c), so long as so long
as  (i)  no  Default  or  Event  of Default shall have occurred or be continuing
either  before  or  after  giving  effect  to  such  transaction,  (ii) no other
provision of the Agreement would be violated thereby, (iii) Borrower gives Agent
at  least  15  days  prior  written  notice  of such merger, and (iv) the Lender
Group's  rights  in  all  or  any  portion  of the Collateral, including without
limitation, the existence, perfection, and priority of any Lien thereon, are not
adversely  affected  by  such  merger.

<PAGE>

     "Permitted  Preferred Stock" means and refers to any Preferred Stock issued
      --------------------------
by  the  Borrower  (and  not  by  one  or  more of its Subsidiaries) that is not
Prohibited  Preferred  Stock.

     "Permitted  Protest" means the right of Borrower or any of its Subsidiaries
      ------------------
to  protest  any  Lien (other than any Lien that secures the Obligations), taxes
(other  than  payroll  taxes  or  taxes  that are the subject of a United States
federal  tax  lien), or rental payment, provided that (a) a reserve with respect
to  such  obligation is established on Borrower's or its Subsidiaries' books and
records  in  such  amount  as  is  required  under GAAP, (b) any such protest is
instituted  promptly and prosecuted diligently by Borrower or its Subsidiary, as
applicable,  in  good  faith,  and  (c)  Agent is satisfied that, while any such
protest is pending, there will be no impairment of the enforceability, validity,
or  priority  of  any  of  the  Agent's  Liens.

     "Permitted  Purchase  Money  Indebtedness"  means,  as  of  any  date  of
      ----------------------------------------
determination, Purchase Money Indebtedness incurred after the Closing Date in an
aggregate  principal  amount  outstanding  at  any  one  time  not  in excess of
$750,000.

     "Person"  means natural persons, corporations, limited liability companies,
      ------
limited  partnerships,  general  partnerships,  limited  liability partnerships,
joint  ventures,  trusts,  land trusts, business trusts, or other organizations,
irrespective  of  whether  they are legal entities, and governments and agencies
and  political  subdivisions  thereof.

     "Preferred  Stock"  means, as applied to the Stock of any Person, the Stock
      ----------------
of  any  class or classes (however designated) that is preferred with respect to
the payment of dividends, or as to the distribution of assets upon any voluntary
or  involuntary  liquidation or dissolution of such Person, over shares of Stock
of  any  other  class  of  such  Person.

     "Prohibited Preferred Stock" means any Preferred Stock that by its terms is
      --------------------------
mandatorily redeemable or subject to any other payment obligation (including any
obligation  to  pay dividends, other than dividends of shares of Preferred Stock
of  the  same  class and series payable in kind or dividends of shares of common
stock) on or before a date that is less than 1 year after the Maturity Date, or,
on  or  before  the  date  that  is less than 1 year after the Maturity Date, is
redeemable  at the option of the holder thereof for cash or assets or securities
(other than distributions in kind of shares of Preferred Stock of the same class
and  series  or  of  shares  of  common  stock).

     "Projections"  means  Borrower's  forecasted (a) balance sheets, (b) profit
      -----------
and  loss  statements,  and  (c)  cash  flow statements, all prepared on a basis
consistent  with  Borrower's  historical  financial  statements,  together  with
appropriate  supporting  details  and  a  statement  of  underlying assumptions.

     "Pro  Rata  Share"  means,  as  of  any  date  of  determination:
      ----------------

     (a)  with  respect  to  a Lender's obligation to make Advances and right to
receive  payments of principal, interest, fees, costs, and expenses with respect
thereto,  (i)  prior  to the Revolver Commitments being terminated or reduced to
zero, the percentage obtained by dividing (y) such Lender's Revolver Commitment,
by  (z)  the  aggregate  Revolver  Commitments of all Lenders, and (ii) from and
after  the time that the Revolver Commitments have been terminated or reduced to
zero,  the  percentage  obtained  by  dividing  (y)  the  aggregate  outstanding
principal  amount  of  such  Lender's  Advances by (z) the aggregate outstanding
principal  amount  of  all  Advances,  and

     (b)  with respect to all other matters as to a particular Lender (including
the  indemnification  obligations  arising  under  Section 15.7), the percentage
obtained  by  dividing  (i)  such  Lender's  Revolver  Commitment,  by  (ii) the
aggregate amount of Revolver Commitments of all Lenders; provided, however, that
in  the  event the Revolver Commitments have been terminated or reduced to zero,
Pro  Rata  Share  under this clause shall be the percentage obtained by dividing
(A)  the  outstanding  principal  amount  of  such Lender's Advances, by (B) the
outstanding  principal  amount  of  all  Advances.

<PAGE>

     "Protective  Advances"  has  the  meaning  specified  therefor  in  Section
      --------------------                                               -------
2.3(d)(i).
---------

     "Purchase  Money  Indebtedness"  means  Indebtedness  (other  than  the
      -----------------------------
Obligations,  but including Capitalized Lease Obligations), incurred at the time
of, or within 20 days after, the acquisition of any fixed assets for the purpose
of  financing  all  or  any  part  of  the  acquisition  cost  thereof.

     "Qualified  Cash"  means,  as  of  any date of determination, the amount of
      ---------------
unrestricted  cash and Cash Equivalents of Borrower and its Subsidiaries that is
in  Deposit  Accounts or in Securities Accounts, or any combination thereof, and
which  such  Deposit  Account  or Securities Account is the subject of a Control
Agreement  and  is  maintained  by  a  branch  office  of the bank or securities
intermediary  located  within  the  United  States.

     "Real  Property"  means any estates or interests in real property now owned
      --------------
or  hereafter  acquired  by  Borrower  or  its Subsidiaries and the improvements
thereto.

     "Record"  means  information that is inscribed on a tangible medium or that
      ------
is  stored  in  an  electronic or other medium and is retrievable in perceivable
form.

     "Refinancing  Indebtedness"  means refinancings, renewals, or extensions of
      -------------------------
Indebtedness  so  long  as:  (a)  the terms and conditions of such refinancings,
renewals,  or  extensions  do  not,  in  Agent's reasonable judgment, materially
impair  the  prospects of repayment of the Obligations by Borrower or materially
impair  Borrower's  creditworthiness,  (b)  such  refinancings,  renewals,  or
extensions  do  not  result  in  an  increase  in  the  principal  amount of the
Indebtedness  so  refinanced,  renewed,  or  extended,  (c)  such  refinancings,
renewals,  or  extensions do not result in an increase in the interest rate with
respect  to  the  Indebtedness  so  refinanced,  renewed,  or extended, (d) such
refinancings,  renewals,  or  extensions  do  not  result in a shortening of the
average  weighted  maturity  of  the  Indebtedness  so  refinanced,  renewed, or
extended,  nor  are  they  on  terms  or  conditions that, taken as a whole, are
materially  more  burdensome or restrictive to Borrower, (e) if the Indebtedness
that is refinanced, renewed, or extended was subordinated in right of payment to
the  Obligations,  then the terms and conditions of the refinancing, renewal, or
extension  must  include subordination terms and conditions that are at least as
favorable  to  the Lender Group as those that were applicable to the refinanced,
renewed,  or extended Indebtedness, and (f) the Indebtedness that is refinanced,
renewed,  or extended is not recourse to any Person that is liable on account of
the  Obligations  other  than those Persons which were obligated with respect to
the  Indebtedness  that  was  refinanced,  renewed,  or  extended.

     "Register"  has  the  meaning  set  forth  in  Section  13.1(h).
      --------                                      ----------------

     "Registered  Loan"  has  the  meaning  set  forth  in  Section  2.16.
      ----------------                                      -------------

     "Registered  Note"  has  the  meaning  set  forth  in  Section  2.16.
      ----------------                                      -------------

     "Related  Fund"  means  a fund, money market account, investment account or
      -------------
other  account  managed  by  a  Lender  or  an  Affiliate  of such Lender or its
investment  manager  or  an  Affiliate  of  its  investment  manager.

     "Remedial  Action"  means  all  actions  taken  to  (a)  clean  up, remove,
      ----------------
remediate,  contain,  treat,  monitor,  assess,  evaluate, or in any way address
Hazardous  Materials  in  the  indoor  or  outdoor  environment,  (b) prevent or
minimize  a  release or threatened release of Hazardous Materials so they do not
migrate  or  endanger  or  threaten  to endanger public health or welfare or the
indoor  or  outdoor environment, (c) restore or reclaim natural resources or the
environment,  (d)  perform  any  pre-remedial  studies,  investigations,  or
post-remedial  operation  and  maintenance  activities, or (e) conduct any other
actions  with  respect  to Hazardous Materials authorized by Environmental Laws.

     "Replacement Lender" has the meaning specified therefor in Section 14.2(a).
      ------------------                                        ---------------

<PAGE>

     "Report"  has  the  meaning  specified  therefor  in  Section  15.17.
      ------                                               --------------

     "Required Availability" means that the sum of (a) Excess Availability, plus
      ---------------------
(b)  Qualified  Cash  exceeds  $2,000,000.

     "Required  Lenders"  means,  at  any time, Lenders whose aggregate Pro Rata
      -----------------
Shares  (calculated  under clause (b) of the definition of Pro Rata Share) equal
or  exceed  50.1%.

     "Reserve  Percentage"  means,  on  any  day,  for  any  Lender, the maximum
      -------------------
percentage  prescribed  by  the Board of Governors of the Federal Reserve System
(or  any  successor  Governmental  Authority)  for  determining  the  reserve
requirements  (including  any  basic,  supplemental,  marginal,  or  emergency
reserves)  that  are in effect on such date with respect to eurocurrency funding
(currently  referred  to  as  "eurocurrency liabilities") of that Lender, but so
long  as such Lender is not required or directed under applicable regulations to
maintain  such  reserves,  the  Reserve  Percentage  shall  be  zero.

     "Restaurant"  means  a "Daily Grill" or "The Grill on the Alley" restaurant
      ----------
or  a  restaurant that is a theme that is derivative of either of the foregoing,
in  each  case,  owned  or  operated  by  a  Borrower  or  a  Guarantor.

     "Revolver  Commitment"  means,  with  respect  to each Lender, its Revolver
      --------------------
Commitment,  and,  with  respect  to all Lenders, their Revolver Commitments, in
each  case  as such Dollar amounts are set forth beside such Lender's name under
the  applicable  heading  on  Schedule  C-1  or in the Assignment and Acceptance
                              -------------
pursuant  to which such Lender became a Lender hereunder, as such amounts may be
reduced  or  increased  from  time  to  time  pursuant  to  assignments  made in
accordance  with  the  provisions  of  Section  13.1.
                                       -------------

     "Revolver  Usage"  means,  as  of  any date of determination, the amount of
      ---------------
outstanding  Advances.

     "SEC"  means  the  United States Securities and Exchange Commission and any
      ---
successor  thereto.

     "Securities Account" means a securities account (as that term is defined in
      ------------------
the  Code).

     "Securitization"  has  the  meaning  set  forth  in  Section  2.15.
      --------------                                      -------------

     "Securitization  Parties"  has  the  meaning  set  forth  in  Section 2.15.
      -----------------------                                      ------------

     "Security  Agreement"  means  a  security  agreement, in form and substance
      -------------------
satisfactory  to  Agent,  executed  and  delivered by Borrower and Guarantors to
Agent.

     "Settlement"  has  the  meaning  specified  therefor  in Section 2.3(e)(i).
      ----------                                              -----------------

     "Settlement  Date" has the meaning specified therefor in Section 2.3(e)(i).
      ----------------                                        -----------------

     "Solvent"  means, with respect to any Person on a particular date, that, at
      -------
fair  valuations,  the  sum  of such Person's assets is greater than all of such
Person's  debts.

     "S&P"  has  the  meaning  specified  therefor  in  the  definition  of Cash
      ---
Equivalents.

     "Stock"  means all shares, options, warrants, interests, participations, or
      -----
other  equivalents  (regardless  of  how  designated) of or in a Person, whether
voting  or  nonvoting,  including  common  stock,  preferred stock, or any other
"equity  security"  (as such term is defined in Rule 3a11-1 of the General Rules
and  Regulations  promulgated  by  the  SEC  under  the  Exchange  Act).

<PAGE>

     "Subsidiary"  of  a  Person  means  a  corporation,  partnership,  limited
      ----------
liability  company,  or other entity in which that Person directly or indirectly
owns  or  controls  the  shares of Stock having ordinary voting power to elect a
majority  of  the  board  of directors (or appoint other comparable managers) of
such  corporation,  partnership,  limited  liability  company,  or other entity;
provided,  however,  that  the  term  "Subsidiary"  shall  not include any Joint
Venture  Subsidiary  or  any  Inactive  Subsidiary.

     "Taxes"  has  the  meaning  specified  therefor  in  Section  15.11(a).
      -----

     "Trademark  Security  Agreement"  has the meaning specified therefor in the
      ------------------------------
Security  Agreement.

     "TTM  EBITDA"  means,  as  of  any date of determination, the EBITDA of the
      -----------
Borrower  and  its  Subsidiaries  for  the  12 month period most recently ended.

     "United  States"  means  the  United  States  of  America.
      --------------

     "Unused  Amount"  has  the  meaning  specified  therefore  in  Section
      --------------                                                -------
6.16(b)(iii).
------------

     "Voidable  Transfer"  has  the  meaning specified therefor in Section 16.6.
      -----------------                                            ------------

     1.2  ACCOUNTING TERMS. All accounting terms not specifically defined herein
          ----------------
shall  be  construed  in  accordance  with  GAAP.  When  used  herein,  the term
"financial  statements"  shall include the notes and schedules thereto. Whenever
the  term  "Borrower"  is  used  in respect of a financial covenant or a related
definition,  it  shall  be understood to mean Borrower and its Subsidiaries on a
consolidated  basis,  unless  the  context  clearly  requires  otherwise.

     1.3  CODE.  Any  terms  used in this Agreement that are defined in the Code
          ----
shall be construed and defined as set forth in the Code unless otherwise defined
herein;  provided,  however,  that to the extent that the Code is used to define
         ---------  -------
any  term  herein  and such term is defined differently in different Articles of
the  Code,  the definition of such term contained in Article 9 of the Code shall
govern.

     1.4  CONSTRUCTION.  Unless  the context of this Agreement or any other Loan
          ------------
Document  clearly  requires  otherwise,  references  to  the  plural include the
singular,  references  to  the singular include the plural, the terms "includes"
and  "including" are not limiting, and the term "or" has, except where otherwise
indicated,  the  inclusive meaning represented by the phrase "and/or." The words
"hereof,"  "herein,"  "hereby," "hereunder," and similar terms in this Agreement
or  any other Loan Document refer to this Agreement or such other Loan Document,
as  the  case  may  be,  as  a whole and not to any particular provision of this
Agreement  or such other Loan Document, as the case may be. Section, subsection,
clause,  schedule,  and  exhibit  references herein are to this Agreement unless
otherwise  specified.  Any  reference  in  this  Agreement  or in any other Loan
Document  to  any  agreement,  instrument,  or  document  shall  include  all
alterations,  amendments,  changes,  extensions,  modifications,  renewals,
replacements,  substitutions, joinders, and supplements, thereto and thereof, as
applicable  (subject  to  any  restrictions  on  such  alterations,  amendments,
changes,  extensions,  modifications,  renewals,  replacements,  substitutions,
joinders,  and  supplements  set  forth  herein). Any reference herein or in any
other  Loan Document to the satisfaction or repayment in full of the Obligations
shall  mean  the  repayment  in  full  in  cash  (or  cash  collateralization in
accordance  with  the  terms  hereof)  of  all Obligations other than unasserted
contingent indemnification Obligations. Any reference herein to any Person shall
be construed to include such Person's successors and assigns. Any requirement of
a  writing  contained herein or in any other Loan Document shall be satisfied by
the  transmission  of  a Record and any Record so transmitted shall constitute a
representation  and  warranty  as  to  the  accuracy  and  completeness  of  the
information  contained  therein.

     1.5  SCHEDULES  AND EXHIBITS. All of the schedules and exhibits attached to
          -----------------------
this  Agreement  shall  be  deemed  incorporated  herein  by  reference.

<PAGE>

2.   LOAN  AND  TERMS  OF  PAYMENT.

     2.1  REVOLVER  ADVANCES.
          ------------------

          (a)  Subject to the terms and conditions of this Agreement, and during
     the  term  of this Agreement, each Lender with a Revolver Commitment agrees
     (severally,  not  jointly  or  jointly  and  severally)  to  make  advances
     ("Advances")  to  Borrower  in an amount at any one time outstanding not to
       --------
     exceed such Lender's Pro Rata Share of an amount equal to the lesser of (i)
     the  Maximum  Revolver Amount, or (ii) the Borrowing Base at such time. All
     Advances  requested by Borrower pursuant to this Section 2.1(a) (except for
     amounts  permitted  to  be  charged to the Loan Account pursuant to Section
     2.6(d)  hereof)  shall  be in increments of $500,000 or more. Not more than
     one  Advance  may  be  requested  by  Borrower  in  any  fiscal  month.

          (b)  Anything  to  the  contrary  in this Section 2.1 notwithstanding,
                                                    -----------
     Agent shall have the right to establish reserves against the Borrowing Base
     in  such  amounts,  and  with  respect  to  such  matters,  as Agent in its
     Permitted  Discretion  shall  deem  necessary  or  appropriate,  including
     reserves  with  respect to (i) sums that Borrower is required to pay by any
     Section  of  this  Agreement  or  any  other  Loan Document (such as taxes,
     assessments, insurance premiums, or, in the case of leased assets, rents or
     other  amounts  payable  under such leases) and has failed to pay, and (ii)
     amounts  owing  by Borrower or its Subsidiaries to any Person to the extent
     secured  by  a  Lien on, or trust over, any of the Collateral (other than a
     Permitted  Lien), which Lien or trust, in the Permitted Discretion of Agent
     likely  would  have a priority superior to the Agent's Liens (such as Liens
     or  trusts  in  favor  of  landlords,  warehousemen,  carriers,  mechanics,
     materialmen,  laborers,  or  suppliers,  or Liens or trusts for ad valorem,
     excise, sales, or other taxes where given priority under applicable law) in
     and  to  such  item  of  the  Collateral.

          (c)  Amounts  borrowed pursuant to this Section 2.1 may be repaid and,
                                                  -----------
     subject  to  the  terms and conditions of this Agreement, reborrowed at any
     time  during  the  term  of  this  Agreement.

     2.2  [INTENTIONALLY  OMITTED].
          ------------------------

     2.3  BORROWING  PROCEDURES  AND  SETTLEMENTS.
          ---------------------------------------

          (a)  PROCEDURE  FOR  BORROWING.  Each  Borrowing  shall  be made by an
     irrevocable  written  request  by  an Authorized Person delivered to Agent.
     Such  notice must be received by Agent no later than 10:00 a.m. (California
     time)  on  the Business Day prior to the date that is the requested Funding
     Date.  In  lieu  of  delivering  the  above-described  written request, any
     Authorized  Person  may give Agent telephonic notice of such request by the
     required  time.  In  such  circumstances,  Borrower  agrees  that  any such
     telephonic  notice  will be confirmed in writing within one Business Day of
     the  giving  of  such  telephonic  notice,  but the failure to provide such
     written  confirmation  shall  not  affect  the  validity  of  the  request.

          (b)  [INTENTIONALLY  OMITTED].

          (c)  MAKING  OF  ADVANCES.

               (i)  Promptly after receipt of a request for a Borrowing pursuant
          to Section 2.3(a), Agent shall notify the Lenders, not later than 1:00
             -------------
          p.m.  (California  time) on the Business Day immediately preceding the
          Funding  Date  applicable  thereto,  by  telecopy, telephone, or other
          similar  form of transmission, of the requested Borrowing. Each Lender
          shall make the amount of such Lender's Pro Rata Share of the requested
          Borrowing  available  to  Agent  in  immediately  available  funds, to
          Agent's  Account,  not  later than 10:00 a.m. (California time) on the
          Funding Date applicable thereto. After Agent's receipt of the proceeds
          of  such  Advances, Agent shall make the proceeds thereof available to
          Borrower  on  the  applicable Funding Date by transferring immediately
          available funds equal to such proceeds received by Agent to Borrower's
          Designated Account; provided, however, that, subject to the provisions
                              --------  -------
          of Section 2.3(d)(ii), Agent shall not request any Lender to make, and
             -----------------
          no  Lender  shall  have  the  obligation to make, any Advance if Agent
          shall  have  actual  knowledge  that (1) one or more of the applicable
          conditions  precedent  set forth in Section 3 will not be satisfied on
                                              ---------
          the  requested  Funding  Date for the applicable Borrowing unless such
          condition has been waived, or (2) the requested Borrowing would exceed
          the  Availability  on  such  Funding  Date.

<PAGE>

               (ii)  Unless  Agent  receives  notice from a Lender prior to 9:00
          a.m.  (California  time)  on the date of a Borrowing, that such Lender
          will  not  make  available as and when required hereunder to Agent for
          the  account of Borrower the amount of that Lender's Pro Rata Share of
          the Borrowing, Agent may assume that each Lender has made or will make
          such  amount  available to Agent in immediately available funds on the
          Funding Date and Agent may (but shall not be so required), in reliance
          upon  such  assumption,  make  available  to  Borrower  on such date a
          corresponding  amount.  If and to the extent any Lender shall not have
          made its full amount available to Agent in immediately available funds
          and  Agent  in  such circumstances has made available to Borrower such
          amount,  that  Lender shall on the Business Day following such Funding
          Date  make  such  amount available to Agent, together with interest at
          the  Defaulting  Lender Rate for each day during such period. A notice
          submitted  by  Agent to any Lender with respect to amounts owing under
          this  subsection  shall  be conclusive, absent manifest error. If such
          amount  is  so  made available, such payment to Agent shall constitute
          such  Lender's  Advance  on  the date of Borrowing for all purposes of
          this  Agreement.  If such amount is not made available to Agent on the
          Business Day following the Funding Date, Agent will notify Borrower of
          such  failure  to  fund  and, upon demand by Agent, Borrower shall pay
          such  amount  to  Agent  for  Agent's  account, together with interest
          thereon  for  each  day elapsed since the date of such Borrowing, at a
          rate  per  annum  equal to the interest rate applicable at the time to
          the  Advances  composing  such Borrowing. The failure of any Lender to
          make  any  Advance  on  any  Funding  Date shall not relieve any other
          Lender  of any obligation hereunder to make an Advance on such Funding
          Date,  but no Lender shall be responsible for the failure of any other
          Lender  to  make  the  Advance  to be made by such other Lender on any
          Funding  Date.

               (iii)  Agent  shall  not be obligated to transfer to a Defaulting
          Lender  any  payments  made  by  Borrower  to Agent for the Defaulting
          Lender's  benefit,  and,  in  the  absence  of  such  transfer  to the
          Defaulting  Lender,  Agent  shall  transfer  any such payments to each
          other  non-Defaulting  Lender  member  of  the Lender Group ratably in
          accordance  with  their  Commitments (but only to the extent that such
          Defaulting  Lender's  Advance  was  funded by the other members of the
          Lender  Group)  or,  if  so  directed by Borrower and if no Default or
          Event  of  Default  had  occurred and is continuing (and to the extent
          such  Defaulting Lender's Advance was not funded by the Lender Group),
          retain same to be re-advanced to Borrower as if such Defaulting Lender
          had  made  Advances  to  Borrower. Subject to the foregoing, Agent may
          hold  and,  in  its  Permitted Discretion, re-lend to Borrower for the
          account  of  such  Defaulting  Lender  the amount of all such payments
          received  and  retained  by  Agent  for the account of such Defaulting
          Lender.  Solely  for  the  purposes of voting or consenting to matters
          with  respect  to  the Loan Documents, such Defaulting Lender shall be
          deemed  not  to  be  a  "Lender" and such Lender's Commitment shall be
          deemed to be zero. This Section shall remain effective with respect to
          such  Lender until (x) the Obligations under this Agreement shall have
          been  declared  or  shall have become immediately due and payable, (y)
          the non-Defaulting Lenders, Agent, and Borrower shall have waived such
          Defaulting  Lender's  default in writing, or (z) the Defaulting Lender
          makes  its  Pro Rata Share of the applicable Advance and pays to Agent
          all  amounts  owing  by  Defaulting  Lender  in  respect  thereof. The
          operation  of  this  Section  shall  not  be  construed to increase or
          otherwise  affect  the  Commitment of any Lender, to relieve or excuse
          the  performance  by such Defaulting Lender or any other Lender of its
          duties  and  obligations  hereunder,  or  to  relieve  or  excuse  the
          performance  by  Borrower  of  its duties and obligations hereunder to
          Agent  or  to  the Lenders other than such Defaulting Lender. Any such
          failure  to  fund by any Defaulting Lender shall constitute a material
          breach  by  such Defaulting Lender of this Agreement and shall entitle
          Borrower at its option, upon written notice to Agent, to arrange for a
          substitute  Lender to assume the Commitment of such Defaulting Lender,
          such  substitute  Lender to be acceptable to Agent (such acceptance by
          Agent  not to be unreasonably withheld or delayed). In connection with
          the  arrangement  of  such  a substitute Lender, the Defaulting Lender
          shall  have no right to refuse to be replaced hereunder, and agrees to
          execute  and  deliver a completed form of Assignment and Acceptance in
          favor  of the substitute Lender (and agrees that it shall be deemed to
          have  executed  and  delivered  such  document  if  it fails to do so)
          subject  only to being repaid its share of the outstanding Obligations
          without  any  premium  or  penalty  of  any kind whatsoever; provided,
                                                                       --------
          however, that any such assumption of the Commitment of such Defaulting
          -------
          Lender  shall  not  be  deemed

<PAGE>

          to  constitute  a  waiver  of  any of the Lender Groups' or Borrower's
          rights  or  remedies against any such Defaulting Lender arising out of
          or  in  relation  to  such  failure  to  fund.

          (d)  PROTECTIVE  ADVANCES  AND  OPTIONAL  OVERADVANCES.

               (i)  Agent hereby is authorized by Borrower and the Lenders, from
          time  to time in Agent's sole discretion, (A) after the occurrence and
          during  the continuance of a Default or an Event of Default, or (B) at
          any  time  that  any  of the other applicable conditions precedent set
          forth  in Section 3 are not satisfied, to make Advances to Borrower on
                    ---------
          behalf  of  the  Lenders that Agent, in its Permitted Discretion deems
          necessary  or  desirable (1) to preserve or protect the Collateral, or
          any  portion  thereof  or  (2)  to  pay any other amount chargeable to
          Borrower  pursuant  to  the  terms of this Agreement, including Lender
          Group  Expenses and the costs, fees, and expenses described in Section
                                                                         -------
          9  (any  of  the Advances described in this Section 2.3(d)(i) shall be
          -
          referred  to  as  "Protective  Advances").
                             --------------------

               (ii)  Any  contrary  provision of this Agreement notwithstanding,
          the  Lenders  hereby  authorize  Agent,  and  Agent  may,  but  is not
          obligated  to,  knowingly and intentionally, continue to make Advances
          to  Borrower  notwithstanding  that  an  Overadvance exists or thereby
          would be created, so long as (A) after giving effect to such Advances,
          the  outstanding  Revolver Usage does not exceed the Borrowing Base by
          more  than $250,000, and (B) after giving effect to such Advances, the
          outstanding  Revolver  Usage (except for and excluding amounts charged
          to the Loan Account for interest, fees, or Lender Group Expenses) does
          not  exceed  the  Maximum  Revolver Amount. In the event Agent obtains
          actual knowledge that the Revolver Usage exceeds the amounts permitted
          by  the immediately foregoing provisions, regardless of the amount of,
          or  reason for, such excess, Agent shall notify the Lenders as soon as
          practicable  (and  prior to making any (or any additional) intentional
          Overadvances  (except  for  and  excluding amounts charged to the Loan
          Account  for  interest,  fees,  or Lender Group Expenses) unless Agent
          determines  that  prior  notice  would  result in imminent harm to the
          Collateral  or  its  value), and the Lenders with Revolver Commitments
          thereupon  shall,  together with Agent, jointly determine the terms of
          arrangements  that  shall  be  implemented  with  Borrower intended to
          reduce,  within a reasonable time, the outstanding principal amount of
          the  Advances  to  Borrower  to  an  amount permitted by the preceding
          paragraph.  In  such  circumstances,  if  any  Lender  with a Revolver
          Commitment  objects to the proposed terms of reduction or repayment of
          any  Overadvance, the terms of reduction or repayment thereof shall be
          implemented  according  to  the determination of the Required Lenders.
          Each  Lender  with  a Revolver Commitment shall be obligated to settle
          with  Agent  as  provided  in  Section  2.3(e)  for the amount of such
                                         ---------------
          Lender's  Pro  Rata  Share  of any unintentional Overadvances by Agent
          reported  to  such  Lender,  any  intentional  Overadvances  made  as
          permitted  under  this  Section  2.3(d)(ii),  and  any  Overadvances
                                  ------------------
          resulting  from the charging to the Loan Account of interest, fees, or
          Lender  Group  Expenses.

               (iii)  Each  Protective  Advance  and  each  Overadvance shall be
          deemed  to  be an Advance hereunder, except that no Protective Advance
          or  Overadvance  shall  be  eligible  to  be a LIBOR Rate Loan and all
          payments  on  the Protective Advances shall be payable to Agent solely
          for its own account. The Protective Advances and Overadvances shall be
          repayable  within two Business Days' following written demand, secured
          by  the  Agent's  Liens,  constitute  Obligations  hereunder, and bear
          interest at the rate applicable from time to time to Advances that are
          Base  Rate  Loans.  The  provisions of this Section 2.3(d) are for the
                                                      -------------
          exclusive  benefit  of  Agent  and the Lenders and are not intended to
          benefit  Borrower  in  any  way.

          (e)  SETTLEMENT. It is agreed that each Lender's funded portion of the
     Advances  is  intended by the Lenders to equal, at all times, such Lender's
     Pro Rata Share of the outstanding Advances. Such agreement notwithstanding,
     Agent  and  the  other  Lenders agree (which agreement shall not be for the
     benefit of Borrower) that in order to facilitate the administration of this
     Agreement  and the other Loan Documents, settlement among the Lenders as to
     the  Advances  and  the  Protective Advances shall take place on a periodic
     basis  in  accordance  with  the  following  provisions:

               (i)  Agent  shall  request  settlement  ("Settlement")  with  the
                                                         ----------
          Lenders  on  a  weekly  basis,  or  on  a  more  frequent  basis if so
          determined  by  Agent  (1)

<PAGE>

          for  itself,  with  respect  to  the  outstanding Protective Advances,
          and  (2)  with  respect to Borrower's or its Subsidiaries' Collections
          received,  as to each by notifying the Lenders by telecopy, telephone,
          or  other  similar form of transmission, of such requested Settlement,
          no  later  than  2:00  p.m.  (California  time)  on  the  Business Day
          immediately  prior  to the date of such requested Settlement (the date
          of such requested Settlement being the "Settlement Date"). Such notice
                                                  ---------------
          of  a  Settlement Date shall include a summary statement of the amount
          of  outstanding  Advances and Protective Advances for the period since
          the  prior  Settlement  Date.  Subject  to  the  terms  and conditions
          contained  herein  (including  Section 2.3(c)(iii)): (y) if a Lender's
                                         ------------------
          balance  of  the Advances (including Protective Advances) exceeds such
          Lender's  Pro  Rata  Share  of  the  Advances  (including  Protective
          Advances)  as of a Settlement Date, then Agent shall, by no later than
          12:00  p.m.  (California  time)  on  the  Settlement Date, transfer in
          immediately  available  funds  to a Deposit Account of such Lender (as
          such  Lender  may  designate),  an  amount  such that each such Lender
          shall,  upon  receipt  of such amount, have as of the Settlement Date,
          its  Pro  Rata  Share of the Advances (including Protective Advances),
          and  (z)  if  a Lender's balance of the Advances (including Protective
          Advances)  is  less  than such Lender's Pro Rata Share of the Advances
          (including  Protective  Advances) as of a Settlement Date, such Lender
          shall  no  later  than  12:00 p.m. (California time) on the Settlement
          Date  transfer  in immediately available funds to the Agent's Account,
          an  amount  such  that  each  such Lender shall, upon transfer of such
          amount,  have  as  of  the  Settlement Date, its Pro Rata Share of the
          Advances  (including Protective Advances). Such amounts made available
          to  Agent under clause (z) of the immediately preceding sentence shall
          be  applied  against the amounts of the applicable Protective Advances
          and  shall  constitute Advances of such Lenders. If any such amount is
          not  made  available  to  Agent  by  any Lender on the Settlement Date
          applicable  thereto  to the extent required by the terms hereof, Agent
          shall  be  entitled  to  recover for its account such amount on demand
          from  such  Lender  together  with  interest thereon at the Defaulting
          Lender  Rate.  (  )  In  determining whether a Lender's balance of the
          Advances  and  Protective  Advances is less than, equal to, or greater
          than  such  Lender's  Pro  Rata  Share  of the Advances and Protective
          Advances as of a Settlement Date, Agent shall, as part of the relevant
          Settlement,  apply  to  such  balance the portion of payments actually
          received  in  good funds by Agent with respect to principal, interest,
          fees  payable  by Borrower and allocable to the Lenders hereunder, and
          proceeds of Collateral. To the extent that a net amount is owed to any
          such  Lender  after  such  application,  such  net  amount  shall  be
          distributed  by  Agent to that Lender as part of such next Settlement.

               (ii)  During  the  period  between  Settlement  Dates, Agent with
          respect to Protective Advances, and each Lender (subject to the effect
          of  agreements  between  Agent and individual Lenders) with respect to
          the  Advances  other  than  Protective  Advances, shall be entitled to
          interest  at the applicable rate or rates payable under this Agreement
          on  the  daily  amount  of  funds employed by Agent or the Lenders, as
          applicable.

          (f)  NOTATION. Agent shall record on its books the principal amount of
     the  Advances owing to each Lender, and Protective Advances owing to Agent,
     and  the  interests  therein  of  each  Lender,  from time to time and such
     records  shall,  absent  manifest  error,  conclusively  be  presumed to be
     correct  and  accurate.

          (g)  LENDERS'  FAILURE TO PERFORM. All Advances (other than Protective
     Advances)  shall be made by the Lenders contemporaneously and in accordance
     with  their  Pro  Rata Shares. It is understood that (i) no Lender shall be
     responsible  for  any failure by any other Lender to perform its obligation
     to make any Advance (or other extension of credit) hereunder, nor shall any
     Commitment  of  any  Lender  be  increased  or decreased as a result of any
     failure  by any other Lender to perform its obligations hereunder, and (ii)
     no  failure by any Lender to perform its obligations hereunder shall excuse
     any  other  Lender  from  its  obligations  hereunder.

<PAGE>

     2.4  PAYMENTS.

          (a)  PAYMENTS  BY  BORROWER.

               (i)  Except  as otherwise expressly provided herein, all payments
          by  Borrower  shall  be made to Agent's Account for the account of the
          Lender  Group  and  shall  be  made in immediately available funds, no
          later  than 11:00 a.m. (California time) on the date specified herein.
          Any  payment received by Agent later than 11:00 a.m. (California time)
          shall  be  deemed  to have been received on the following Business Day
          and any applicable interest or fee shall continue to accrue until such
          following  Business  Day.

               (ii) Unless Agent receives notice from Borrower prior to the date
          on which any payment is due to the Lenders that Borrower will not make
          such  payment  in  full  as  and  when required, Agent may assume that
          Borrower has made (or will make) such payment in full to Agent on such
          date in immediately available funds and Agent may (but shall not be so
          required), in reliance upon such assumption, distribute to each Lender
          on  such  due date an amount equal to the amount then due such Lender.
          If  and  to  the extent Borrower does not make such payment in full to
          Agent on the date when due, each Lender severally shall repay to Agent
          on  demand  such  amount  distributed  to  such  Lender, together with
          interest  thereon  at the Defaulting Lender Rate for each day from the
          date  such amount is distributed to such Lender until the date repaid.

          (b)  APPORTIONMENT  AND  APPLICATION.

               (i)  Except  as  otherwise  provided  with  respect to Defaulting
          Lenders  and  except  as  otherwise  provided  in  the  Loan Documents
          (including agreements between Agent and individual Lenders), aggregate
          principal and interest payments shall be apportioned ratably among the
          Lenders  (according to the unpaid principal balance of the Obligations
          to  which  such  payments  relate held by each Lender) and payments of
          fees  and  expenses  (other than fees or expenses that are for Agent's
          separate  account, after giving effect to any agreements between Agent
          and individual Lenders) shall be apportioned ratably among the Lenders
          having  a  Pro  Rata  Share of the type of Commitment or Obligation to
          which  a  particular  fee  relates.  All payments shall be remitted to
          Agent  and  all such payments, and all proceeds of Collateral received
          by  Agent,  shall  be  applied as follows (provided that so long as no
          Event  of  Default  has  occurred  and  is  continuing, Agent shall be
          entitled to apply the proceeds of Collections to reduce the balance of
          the  Advances  outstanding):

                    (A) first, ratably to pay any Lender Group Expenses then due
                        -----
               to  Agent  or  any of the Lenders under the Loan Documents, until
               paid  in  full,

                    (B)  second,  ratably  to  pay any documented or contractual
                         ------
               fees  or  premiums  then due to Agent or any of the Lenders under
               the  Loan  Documents  until  paid  in  full,

                    (C)  third, to pay interest due in respect of all Protective
                         -----
               Advances  until  paid  in  full,

                    (D)  fourth, to pay the principal of all Protective Advances
                         ------
               until  paid  in  full,

                    (E)  fifth,  ratably  to  pay interest due in respect of the
                         -----
               Advances  (other  than  Protective  Advances) until paid in full,

                    (F)  sixth,  to pay the principal of all Advances until paid
                         -----
               in  full,

                    (G)  seventh,  If  an  Event  of Default has occurred and is
                         -------
               continuing,  to  pay  any  other  Obligations,  and

                    (H)  eighth,  to  Borrower  (to  be  wired to the Designated
                         ------
               Account)  or  such other Person entitled thereto under applicable
               law.

<PAGE>

               (ii)  Agent promptly shall distribute to each Lender, pursuant to
          the applicable wire instructions received from each Lender in writing,
          such  funds  as it may be entitled to receive, subject to a Settlement
          delay  as  provided  in  Section  2.3(e).
                                   --------------

               (iii)  In  each  instance,  so  long  as  no Event of Default has
          occurred  and  is continuing, Section 2.4(b)(i) shall not apply to any
                                        ----------------
          payment  made by Borrower to Agent and specified by Borrower to be for
          the  payment  of  specific  Obligations  then  due  and  payable  (or
          prepayable)  under  any  provision  of  this  Agreement.

               (iv)  For  purposes  of  Section  2.4(b)(i), "paid in full" means
                                        ------------------
          payment of all amounts owing under the Loan Documents according to the
          terms  thereof,  including loan fees, service fees, professional fees,
          interest  (and  specifically  including  interest  accrued  after  the
          commencement of any Insolvency Proceeding), default interest, interest
          on  interest,  and  expense  reimbursements, whether or not any of the
          foregoing  would be or is allowed or disallowed in whole or in part in
          any  Insolvency  Proceeding.

               (v)  In  the  event  of  a  direct  conflict between the priority
          provisions  of  this  Section 2.4 and any other provision contained in
                                -----------
          any  other  Loan  Document,  it is the intention of the parties hereto
          that  such  provisions  be read together and construed, to the fullest
          extent possible, to be in concert with each other. In the event of any
          actual,  irreconcilable conflict that cannot be resolved as aforesaid,
          the terms and provisions of this Section 2.4 shall control and govern.
                                           -----------

               (vi)  Notwithstanding  the  foregoing,  so  long  as  no Event of
          Default  has  occurred  and  is  continuing,  to  the  extent that (A)
          payments  received  by Agent are to be applied to the principal amount
          of  the  Advances  pursuant  to  clause (F) above for application to a
          LIBOR  Rate Loan prior to the end of the Interest Period applicable to
          such  LIBOR  Rate Loan and (B) the application of such amounts to such
          LIBOR  Rate  Loan  prior  to the end of the Interest Period applicable
          thereto  would  result  in  Funding  Losses, then, unless the Borrower
          otherwise  directs  the  Agent  in  writing, such amounts shall not be
          applied  to  such  LIBOR  Rate  Loan  prior to the end of the Interest
          Period  applicable  thereto  and  instead  shall  be  held  in  a cash
          collateral  account  maintained  by Agent until the earlier of (i) the
          last Business Day of the Interest Period applicable to such LIBOR Rate
          Loan  and  (ii)  the  occurrence of an Event of Default, at which time
          such  funds  shall  be  applied  to  such  LIBOR  Rate  Loan.

     2.5  OVERADVANCES.  If,  at  any  time  or  for  any  reason, the amount of
          ------------
Obligations  owed  by  Borrower  to  the Lender Group pursuant to Section 2.1 is
                                                                  -----------
greater than any of the limitations set forth in Section 2.1 (an "Overadvance"),
                                                 -----------      -----------
Borrower shall, within two Business Days after prior written notice thereof from
Agent  to  Borrower,  pay  to  Agent,  in cash, the amount of such excess, which
amount  shall  be used by Agent to reduce the Obligations in accordance with the
priorities set forth in Section 2.4(b). In addition, Borrower hereby promises to
                        -------------
pay  the  Obligations (including principal, interest, fees, costs, and expenses)
in Dollars in full as and when due and payable under the terms of this Agreement
and  the  other  Loan  Documents.

     2.6  INTEREST  RATES:  RATES,  PAYMENTS,  AND  CALCULATIONS.
          ------------------------------------------------------

          (a)  INTEREST  RATES.  Except  as  provided  in  clause (c) below, all
     Obligations  that  have  been  charged  to the Loan Account pursuant to the
     terms  hereof  shall  bear interest on the Daily Balance thereof as follows
     (i)  if the relevant Obligation is an Advance that is a LIBOR Rate Loan, at
     a  per  annum  rate  equal to the LIBOR Rate plus the LIBOR Rate Margin and
     (ii)  otherwise,  at  a per annum rate equal to the Base Rate plus the Base
     Rate  Margin.

          (b)  [INTENTIONALLY  OMITTED].

          (c)  DEFAULT  RATE. Upon the occurrence and during the continuation of
     an  Event  of  Default (and at the election of Agent), all Obligations that

<PAGE>

     have  been  charged  to the Loan Account pursuant to the terms hereof shall
     bear  interest  on the Daily Balance thereof at a per annum rate equal to 4
     percentage  points above the per annum rate otherwise applicable hereunder.

          (d)  PAYMENT.  Except  as  provided to the contrary in Section 2.11 or
                                                                 ------------
     Section  2.13(a),  interest  and all contractual or documented fees payable
     ---------------
     hereunder  shall  be  due and payable, in arrears, on the first day of each
     month at any time that Obligations or Commitments are outstanding. Borrower
     hereby  authorizes  Agent,  from time to time after prior written notice to
     Borrower,  to  charge  all  interest  and  fees (when due and payable), all
     Lender  Group  Expenses (as and when incurred), all fees and costs provided
     for  in  Section  2.11  (as  and  when  accrued or incurred), and all other
              -------------
     payments  as  and  when due and payable under any Loan Document to the Loan
     Account,  which  amounts thereafter shall constitute Advances hereunder and
     shall accrue interest at the rate then applicable to Advances that are Base
     Rate  Loans.  Any  interest  not paid when due shall be compounded by being
     charged  to  the  Loan  Account  and  shall  thereafter constitute Advances
     hereunder and shall accrue interest at the rate then applicable to Advances
     that  are  Base  Rate  Loans.

          (e)  COMPUTATION.  All  interest  and  fees  chargeable under the Loan
     Documents  shall  be computed on the basis of a 365/366, as applicable, day
     year  for  the actual number of days elapsed. In the event the Base Rate is
     changed  from time to time hereafter, the rates of interest hereunder based
     upon  the  Base  Rate  automatically  and immediately shall be increased or
     decreased  by  an  amount  equal to such change in the Base Rate, and Agent
     shall  give  Borrower  timely  written  notice  of  such  change.

          (f)  INTENT TO LIMIT CHARGES TO MAXIMUM LAWFUL RATE. In no event shall
     the  interest  rate  or  rates payable under this Agreement, plus any other
     amounts  paid  in  connection herewith, exceed the highest rate permissible
     under  any  law  that  a  court of competent jurisdiction shall, in a final
     determination, deem applicable. Borrower and the Lender Group, in executing
     and  delivering  this  Agreement,  intend legally to agree upon the rate or
     rates  of  interest  and  manner  of  payment  stated  within it; provided,
                                                                       --------
     however,  that,  anything contained herein to the contrary notwithstanding,
     -------
     if  said rate or rates of interest or manner of payment exceeds the maximum
     allowable  under  applicable  law, then, ipso facto, as of the date of this
     Agreement,  Borrower  is  and  shall be liable only for the payment of such
     maximum  as allowed by law, and payment received from Borrower in excess of
     such  legal  maximum,  whenever  received,  shall  be applied to reduce the
     principal  balance  of  the  Obligations  to  the  extent  of  such excess.

     2.7  CASH  MANAGEMENT.
          ----------------

          (a) Other than with respect to any Managed Account, Borrower shall and
     shall  cause  each  of  its Subsidiaries to (i) establish and maintain cash
     management  services of a type and on terms satisfactory to Agent at one or
     more  of  the  banks  set forth on Schedule 2.7(a) (each a "Cash Management
                                        --------------           ---------------
     Bank"),  and  shall  request  in writing and otherwise take such reasonable
     ----
     steps  to  ensure  that  all  of  its and its Subsidiaries' Account Debtors
     forward  payment  of  the  amounts  owed  by  them  directly  to  such Cash
     Management Bank, and (ii) deposit or cause to be deposited promptly, and in
     any  event  no  later than the third Business Day after the date of receipt
     thereof,  all  of their Collections (including those sent directly by their
     Account Debtors to Borrower or one of its Subsidiaries) into a bank account
     (a  "Cash  Management  Account")  at  one  of  the  Cash  Management Banks.
          -------------------------

          (d)  Each  Cash  Management  Bank shall establish and maintain Control
     Agreements  with  Agent  and  Borrower.  Each  such Control Agreement shall
     provide,  among other things, that (i) the Cash Management Bank will comply
     with  any instructions originated by Agent directing the disposition of the
     funds  in  such Cash Management Account without further consent by Borrower
     or  its  Subsidiaries,  as applicable, (ii) the Cash Management Bank has no
     rights  of  setoff  or recoupment or any other claim against the applicable
     Cash  Management  Account  other  than  for payment of its service fees and
     other  charges  directly  related  to  the  administration  of  such  Cash
     Management  Account  and for returned checks or other items of payment, and
     (iii) upon request by Agent it will forward, by daily sweep, all amounts in
     the applicable Cash Management Account to the Agent's Account. The forgoing
     to  the  contrary  notwithstanding,  Agent  shall  not  instruct  the  Cash

<PAGE>

     Management  Bank  to  forward  by daily sweep the amounts in the applicable
     Cash  Management  Account to the Agent's Account prior to the occurrence of
     an  Event  of  Default.

          (c)  So  long  as  no  Default or Event of Default has occurred and is
     continuing,  Borrower  may  amend  Schedule 2.7(a) to add or replace a Cash
                                        --------------
     Management  Bank  or  Cash  Management Account; provided, however, that (i)
                                                     --------  -------
     such  prospective  Cash Management Bank shall be reasonably satisfactory to
     Agent,  and  (ii)  prior to the time of the opening of such Cash Management
     Account,  Borrower  (or its Subsidiary, as applicable) and such prospective
     Cash  Management  Bank shall have executed and delivered to Agent a Control
     Agreement. Borrower (or its Subsidiaries, as applicable) shall close any of
     its  Cash  Management  Accounts  (and establish replacement cash management
     accounts  in  accordance  with  the foregoing sentence) promptly and in any
     event  within 30 days of notice from Agent that the creditworthiness of any
     Cash  Management  Bank  is  no  longer  acceptable  in  Agent's  reasonable
     judgment,  or as promptly as practicable and in any event within 60 days of
     notice  from  Agent  that  the  operating  performance,  funds transfer, or
     availability  procedures  or  performance  of the Cash Management Bank with
     respect  to Cash Management Accounts or Agent's liability under any Control
     Agreement with such Cash Management Bank is no longer acceptable in Agent's
     reasonable  judgment.

          (d)  Each  Cash  Management Account shall be a cash collateral account
     subject  to  a  Control  Agreement.

          2.8  CREDITING  PAYMENTS.  The  receipt  of  any payment item by Agent
               -------------------
     (whether  from  transfers to Agent by the Cash Management Banks pursuant to
     the  Control  Agreements or otherwise) shall not be considered a payment on
     account  unless  such  payment  item  is  a  wire  transfer  of immediately
     available  federal  funds  made  to the Agent's Account or unless and until
     such payment item is honored when presented for payment. Should any payment
     item  not  be  honored  when  presented for payment, then Borrower shall be
     deemed  not  to  have  made  such  payment and interest shall be calculated
     accordingly. Anything to the contrary contained herein notwithstanding, any
     payment  item shall be deemed received by Agent only if it is received into
     the  Agent's  Account on a Business Day on or before 11:00 a.m. (California
     time).  If  any  payment  item  is  received  into the Agent's Account on a
     non-Business  Day  or after 11:00 a.m. (California time) on a Business Day,
     it  shall  be  deemed  to  have been received by Agent as of the opening of
     business  on  the  immediately  following  Business  Day.

          2.9 DESIGNATED ACCOUNT. Agent is authorized to make the Advances under
              ------------------
     this  Agreement  based  upon telephonic or other instructions received from
     anyone  purporting  to be an Authorized Person or, without instructions, if
     pursuant  to  Section 2.6(d). Borrower agrees to establish and maintain the
                   -------------
     Designated  Account  with  the  Designated  Account Bank for the purpose of
     receiving  the  proceeds  of the Advances requested by Borrower and made by
     Agent  or  the  Lenders  hereunder.  Unless  otherwise  agreed by Agent and
     Borrower,  any Advance or Protective Advance requested by Borrower and made
     by  Agent or the Lenders hereunder shall be made to the Designated Account.

          2.10  MAINTENANCE  OF  LOAN  ACCOUNT; STATEMENTS OF OBLIGATIONS. Agent
                ---------------------------------------------------------
     shall  maintain  an account on its books in the name of Borrower (the "Loan
                                                                            ----
     Account")  on  which  Borrower will be charged with all Advances (including
     -------
     Protective  Advances)  made  by  Agent  or  the  Lenders to Borrower or for
     Borrower's  account  and  with  all  other payment Obligations hereunder or
     under  the  other  Loan  Documents,  including,  accrued interest, fees and
     expenses,  and  Lender  Group Expenses. In accordance with Section 2.8, the
                                                                -----------
     Loan  Account  will  be  credited  with all payments received by Agent from
     Borrower  or  for Borrower's account, including all amounts received in the
     Agent's  Account  from  any  Cash  Management  Bank.  Agent  shall  render
     statements  regarding  the  Loan  Account to Borrower, including principal,
     interest,  fees,  and  including an itemization of all charges and expenses
     constituting  Lender  Group  Expenses  owing,  and  such statements, absent
     manifest  error,  shall be conclusively presumed to be correct and accurate
     and  constitute  an  account  stated  between Borrower and the Lender Group
     unless,  within  120 days after receipt thereof by Borrower, Borrower shall
     deliver  to  Agent written objection thereto describing the error or errors
     contained  in  any  such  statements.

<PAGE>

          2.11  FEES.  Borrower  shall pay to Agent, as and when due and payable
                ----
     under  the  terms  of the Fee Letter, the fees set forth in the Fee Letter.

          2.12  [INTENTIONALLY  OMITTED]
                 ----------------------

          2.12  LIBOR  OPTION.
                -------------

          (a)  INTEREST  AND  INTEREST PAYMENT DATES. In lieu of having interest
     charged  at  the  rate  based  upon  the Base Rate, Borrower shall have the
     option  (the  "LIBOR  Option")  to have interest on all or a portion of the
                    -------------
     Advances  be  charged  at  a  rate  of  interest based upon the LIBOR Rate.
     Interest  on  LIBOR  Rate Loans shall be payable on the earliest of (i) the
     last  day of the Interest Period applicable thereto, (ii) the date on which
     all or any portion of the Obligations are accelerated pursuant to the terms
     hereof, or (iii) the date on which this Agreement is terminated pursuant to
     the  terms  hereof.  On  the  last  day of each applicable Interest Period,
     unless  Borrower  properly  has  exercised  the  LIBOR  Option with respect
     thereto, the interest rate applicable to such LIBOR Rate Loan automatically
     shall convert to the rate of interest then applicable to Base Rate Loans of
     the  same type hereunder. At any time that an Event of Default has occurred
     and is continuing, Borrower no longer shall have the option to request that
     Advances  bear interest at a rate based upon the LIBOR Rate and Agent shall
     have  the  right to convert the interest rate on all outstanding LIBOR Rate
     Loans  to  the  rate  then  applicable  to  Base  Rate  Loans  hereunder.

          (b)  LIBOR  ELECTION.

               (i)  Borrower  may, at any time and from time to time, so long as
          no  Event of Default has occurred and is continuing, elect to exercise
          the  LIBOR  Option  by notifying Agent prior to 11:00 a.m. (California
          time)  at  least  3  Business  Days  prior  to the commencement of the
          proposed  Interest Period (the "LIBOR Deadline"). Notice of Borrower's
                                          --------------
          election  of  the LIBOR Option for a permitted portion of the Advances
          and  an  Interest  Period  pursuant  to  this Section shall be made by
          delivery to Agent of a LIBOR Notice received by Agent before the LIBOR
          Deadline,  or  by telephonic notice received by Agent before the LIBOR
          Deadline  (to  be  confirmed  by  delivery  to Agent of a LIBOR Notice
          received  by  Agent promptly thereafter). Promptly upon its receipt of
          each  such LIBOR Notice, Agent shall provide a copy thereof to each of
          the  Lenders  having  a  Revolver  Commitment.

               (ii)  Each  LIBOR  Notice  shall  be  irrevocable  and binding on
          Borrower.  In  connection  with  each  LIBOR Rate Loan, Borrower shall
          indemnify, defend, and hold Agent and the Lenders harmless against any
          loss,  cost, or expense incurred by Agent or any Lender as a result of
          (A)  the payment of any principal of any LIBOR Rate Loan other than on
          the  last day of an Interest Period applicable thereto (including as a
          result  of  an Event of Default), (B) the conversion of any LIBOR Rate
          Loan  other  than  on  the  last day of the Interest Period applicable
          thereto, or (C) the failure to borrow, convert, continue or prepay any
          LIBOR  Rate  Loan  on the date specified in any LIBOR Notice delivered
          pursuant  hereto  (such losses, costs, or expenses, "Funding Losses").
                                                               --------------
          Funding  Losses  shall, with respect to Agent or any Lender, be deemed
          to  equal  the  amount  determined  by  Agent or such Lender to be the
          excess,  if any, of (1) the amount of interest that would have accrued
          on  the  principal  amount  of such LIBOR Rate Loan had such event not
          occurred,  at  the LIBOR Rate that would have been applicable thereto,
          for the period from the date of such event to the last day of the then
          current  Interest  Period  therefor  (or,  in the case of a failure to
          borrow,  convert, or continue, for the period that would have been the
          Interest Period therefor), minus (2) the amount of interest that would
          accrue  on  such principal amount for such period at the interest rate
          which  Agent or such Lender would be offered were it to be offered, at
          the  commencement  of  such  period,  Dollar  deposits of a comparable
          amount  and  period  in  the London interbank market. A certificate of
          Agent  or  a  Lender delivered to Borrower setting forth in reasonable
          detail  any amount or amounts that Agent or such Lender is entitled to
          receive  pursuant  to  this  Section  2.13  shall be conclusive absent
          manifest  error.

<PAGE>

               (iii)  Borrower shall have not more than five LIBOR Rate Loans in
          effect  at any given time. Borrower only may exercise the LIBOR Option
          for  LIBOR Rate Loans of at least $1,000,000 and integral multiples of
          $500,000  in  excess  thereof.

          (c)  PREPAYMENTS.  Borrower  may  prepay LIBOR Rate Loans at any time;
     provided,  however,  that in the event that LIBOR Rate Loans are prepaid on
     --------   -------
     any  date  that  is  not  the  last  day  of the Interest Period applicable
     thereto,  including  as  a  result  of any automatic prepayment through the
     required  application  by  Agent  of  proceeds  of  Borrower's  and  its
     Subsidiaries'  Collections  in  accordance  with  Section 2.4(b) or for any
                                                       -------------
     other  reason, including early termination of the term of this Agreement or
     acceleration of all or any portion of the Obligations pursuant to the terms
     hereof,  Borrower  shall  indemnify, defend, and hold Agent and the Lenders
     and  their  Participants  harmless  against  any  and all Funding Losses in
     accordance  with  clause  (b)(ii)  above.

          (d)  SPECIAL  PROVISIONS  APPLICABLE  TO  LIBOR  RATE.

               (i)  The  LIBOR Rate may be adjusted by Agent with respect to any
          Lender  on  a prospective basis to take into account any additional or
          increased  costs  to  such  Lender  of  maintaining  or  obtaining any
          eurodollar  deposits  or increased costs, in each case, due to changes
          in applicable law occurring subsequent to the commencement of the then
          applicable  Interest  Period,  including  changes  in tax laws (except
          changes  of  general  applicability  in corporate income tax laws) and
          changes  in the reserve requirements imposed by the Board of Governors
          of  the  Federal  Reserve  System  (or  any  successor), excluding the
          Reserve Percentage, which additional or increased costs would increase
          the  cost  of funding loans bearing interest at the LIBOR Rate. In any
          such  event,  the affected Lender shall give Borrower and Agent notice
          of  such  a  determination  and  adjustment  and  Agent promptly shall
          transmit  the notice to each other Lender and, upon its receipt of the
          notice  from  the  affected  Lender,  Borrower  may, by notice to such
          affected  Lender  (y)  require  such  Lender  to furnish to Borrower a
          statement  setting  forth  the basis for adjusting such LIBOR Rate and
          the method for determining the amount of such adjustment, or (z) repay
          the  LIBOR  Rate  Loans  with respect to which such adjustment is made
          (together  with  any  amounts  due  under  Section  2.13(b)(ii)).
                                                     --------------------

               (ii)  In  the  event  that any change in market conditions or any
          law, regulation, treaty, or directive, or any change therein or in the
          interpretation  of  application  thereof,  shall at any time after the
          date hereof, in the reasonable opinion of any Lender, make it unlawful
          or impractical for such Lender to fund or maintain LIBOR Rate Loans or
          to  continue  such  funding  or maintaining, or to determine or charge
          interest  rates  at  the  LIBOR Rate, such Lender shall give notice of
          such  changed  circumstances  to Agent and Borrower and Agent promptly
          shall  transmit the notice to each other Lender and (y) in the case of
          any  LIBOR  Rate  Loans  of such Lender that are outstanding, the date
          specified  in  such Lender's notice shall be deemed to be the last day
          of the Interest Period of such LIBOR Rate Loans, and interest upon the
          LIBOR  Rate  Loans  of such Lender thereafter shall accrue interest at
          the  rate  then  applicable to Base Rate Loans, and (z) Borrower shall
          not be entitled to elect the LIBOR Option until such Lender determines
          that  it  would  no  longer  be  unlawful  or  impractical  to  do so.

          (e)  NO  REQUIREMENT  OF  MATCHED  FUNDING.  Anything  to the contrary
     contained herein notwithstanding, neither Agent, nor any Lender, nor any of
     their  Participants, is required actually to acquire eurodollar deposits to
     fund or otherwise match fund any Obligation as to which interest accrues at
     the  LIBOR  Rate.  The  provisions  of  this Section shall apply as if each
     Lender  or  its  Participants  had  match funded any Obligation as to which
     interest is accruing at the LIBOR Rate by acquiring eurodollar deposits for
     each  Interest  Period  in  the  amount  of  the  LIBOR  Rate  Loans.

          2.14  CAPITAL  REQUIREMENTS.  If,  after  the  date hereof, any Lender
                ---------------------
     determines  that (i) the adoption of or change in any law, rule, regulation
     or  guideline  regarding  capital  requirements  for  banks or bank holding
     companies,  or  any  change in the interpretation or application thereof by
     any Governmental Authority charged with the administration thereof, or (ii)
     compliance  by  such  Lender  or  its  parent bank holding company with any
     guideline,  request,  or  directive  of  any  such entity regarding capital

<PAGE>

     adequacy  (whether  or  not  having  the  force  of law), has the effect of
     reducing the return on such Lender's or such holding company's capital as a
     consequence  of  such  Lender's Commitments hereunder to a level below that
     which  such Lender or such holding company could have achieved but for such
     adoption, change, or compliance (taking into consideration such Lender's or
     such  holding  company's  then  existing  policies  with respect to capital
     adequacy and assuming the full utilization of such entity's capital) by any
     amount  deemed  by  such Lender to be material, then such Lender may notify
     Borrower  and  Agent  thereof.  Following  receipt of such notice, Borrower
     agrees  to pay such Lender on demand the amount of such reduction of return
     of capital as and when such reduction is determined, payable within 90 days
     after  presentation by such Lender of a statement in the amount and setting
     forth  in  reasonable  detail  such  Lender's  calculation  thereof and the
     assumptions upon which such calculation was based (which statement shall be
     deemed true and correct absent manifest error). In determining such amount,
     such  Lender  may  use  any  reasonable  averaging and attribution methods.

          2.15 SECURITIZATION. Borrower hereby acknowledges that the Lenders and
               --------------
     each of their Affiliates and Related Funds who are or may from time to time
     become  "Lenders"  hereunder  may  sell  or  securitize  the Obligations (a
     "Securitization")  through  the  pledge  of  the  Obligations as collateral
      --------------
     security  for  loans  to  such Lenders or their Affiliates or their Related
     Funds  or  through the sale of the Obligations or the issuance of direct or
     indirect interests in the Obligations, which loans to such Lenders or their
     Affiliates  or  their Related Funds or direct or indirect interests will be
     rated  by  Moody's,  Standard & Poor's or one or more other rating agencies
     (the  "Rating  Agencies").  Borrower  agrees to use commercially reasonable
            ----------------
     efforts  to  cooperate  with  such Lenders and their Affiliates and Related
     Funds  to  effect  the  Securitization  by  (a)  executing  such additional
     documents,  as  reasonably requested by such Lenders in order to effect the
     Securitization,  provided  that  (i) any such additional documentation does
     not,  in  the aggregate, impose material additional costs or liabilities on
     Borrower,  and  (ii)  any  such  additional  documentation does not, in the
     aggregate,  materially  adversely  affect  the  rights,  or  increase  the
     Obligations,  of Borrower under the Loan Documents or change or affect in a
     manner  adverse  to  Borrower the financial terms of the Obligations or add
     more  restrictive  covenants  or  defaults,  (b)  at  the request of Agent,
     providing  such  written information as may be reasonably requested by such
     Lenders  in  connection  with  the  rating  of  the  Obligations  or  the
     Securitization,  and  (c)  providing  in  connection with any rating of the
     Obligations a certificate (i) agreeing to indemnify such Lenders and any of
     their  Affiliates  and  Related  Funds,  any of the Rating Agencies, or any
     party  providing  credit  support  or  otherwise  participating  in  the
     Securitization (collectively, the "Securitization Parties") for any losses,
                                        ----------------------
     claims, damages or liabilities (the "Liabilities") to which such Lenders or
                                          -----------
     any  of  their Affiliates or Related Funds, or such Securitization Parties,
     may  become  subject  insofar  as the Liabilities arise out of or are based
     upon  a breach of the representation and warranty contained in Section 4.18
                                                                    ------------
     (as  if such representation or warranty were made to the best of Borrower's
     knowledge),  and  (ii)  agreeing  to  reimburse  such  Lenders  and  their
     Affiliates  and  Related  Funds,  and  such Securitization Parties, for any
     legal  or  other expenses reasonably incurred by such Persons in connection
     with  defending  the  Liabilities.

          2.16  REGISTERED  NOTES.  Agent  (or  in the case of an assignment not
                -----------------
     recorded  in the Register in accordance with Section 13.1(h), the assigning
                                                  --------------
     Lender), acting solely for this purpose as non-fiduciary agent of Borrower,
     agrees  to  record  each  Advance  on  the  Register  (or in the case of an
     assignment not recorded in the Register in accordance with Section 13.1(h),
                                                                ---------------
     a register comparable to the Register) referred to in Section 13.1(h). Each
                                                           --------------
     Advance  recorded on the Register (or comparable register) (the "Registered
                                                                      ----------
     Loan")  may  not  be evidenced by a promissory note other than a Registered
     ----
     Note  (as  defined  below).  Upon  the registration of any Registered Loan,
     Borrower  agrees,  at  the  request  of  Agent, on behalf of the applicable
     Lender  who holds a portion of such Registered Loan, to execute and deliver
     to  Agent, for the benefit of such Lender, a promissory note, in conformity
     with  the  terms  of  this  Agreement,  in registered form to evidence such
     Registered  Loan,  in  form  and substance satisfactory to such Lender, and
     registered as provided in Section 13.1(h) (a "Registered Note"), payable to
                               --------------      ---------------
     such Lender and otherwise duly completed. Once recorded on the Register (or
     comparable  register),  a  Registered  Loan  may  not  be  removed from the
     Register  (or comparable register) so long as it remains outstanding, and a
     Registered  Note  may  not be exchanged for a promissory note that is not a
     Registered  Note.

<PAGE>

3.   CONDITIONS;  TERM  OF  AGREEMENT.

     3.1 CONDITIONS PRECEDENT TO THE INITIAL EXTENSION OF CREDIT. The obligation
         -------------------------------------------------------
of  each  Lender to make its initial extension of credit provided for hereunder,
is  subject  to  the  fulfillment,  to  the satisfaction of Agent of each of the
following  conditions  precedent (the making of such initial extension of credit
by  a  Lender  being conclusively deemed to be its satisfaction or waiver of the
conditions  precedent):

          (a)  the  Closing  Date  shall  occur  on  or  before  March 31, 2006;

          (b)  [intentionally  omitted]

          (c)  Agent  shall  have  received  evidence that appropriate financing
     statements  have  been  duly  filed  in  such  office  or offices as may be
     necessary  or,  in  the  opinion of Agent, desirable to perfect the Agent's
     Liens  in  and  to  the  Collateral, and Agent shall have received searches
     reflecting  the  filing  of  all  such  financing  statements;

          (d) Agent shall have received each of the following documents, in form
     and  substance satisfactory to Agent, duly executed, and each such document
     shall  be  in  full  force  and  effect:

               (i)  the  Control  Agreement,

               (ii)  a disbursement letter executed and delivered by Borrower to
          Agent  regarding  the  extensions  of credit to be made on the Closing
          Date,  the  form  and  substance  of  which  is satisfactory to Agent,

               (iii)  the  Fee  Letter,

               (iv)  the  Guaranty,

               (v)  the  Intercompany  Subordination  Agreement,

               (vi)  a letter, in form and substance satisfactory to Agent, from
          Existing  Lender  to Agent respecting the amount necessary to repay in
          full  all of the obligations of Borrower and its Subsidiaries owing to
          Existing Lender under the Existing Loan Documents and obtain a release
          of  all  of the Liens in favor of Existing Lender in and to the assets
          of  Borrower  and its Subsidiaries to the extent such Liens secure the
          obligations  of  the  Borrower and its Subsidiaries under the Existing
          Loan  Documents,  together  with  termination  statements  and  other
          documentation  evidencing  the  termination by Existing Lender of such
          Liens,  and

               (vii)  the  Security  Agreement,  together  with all certificates
          representing  the shares of Stock pledged thereunder, as well as Stock
          powers  with  respect  thereto  endorsed  in  blank  ;

               (viii)  the  Trademark  Security  Agreement,

          (e)  Agent  shall  have  received  a certificate from the Secretary of
     Borrower  (i) attesting to the resolutions of Borrower's Board of Directors
     authorizing  its execution, delivery, and performance of this Agreement and
     the  other  Loan  Documents  to which Borrower is a party, (ii) authorizing
     specific  officers  of Borrower to execute the same, and (iii) attesting to
     the  incumbency  and  signatures  of  such  specific  officers of Borrower;

          (f)  Agent  shall  have  received  copies  of  Borrower's  Governing
     Documents,  as  amended,  modified,  or  supplemented  to the Closing Date,
     certified  by  the  Secretary  of  Borrower;

<PAGE>

          (g)  Agent shall have received a certificate of status with respect to
     Borrower,  dated within 10 days of the Closing Date, such certificate to be
     issued  by  the  appropriate officer of the jurisdiction of organization of
     Borrower,  which  certificate  shall  indicate  that  Borrower  is  in good
     standing  in  such  jurisdiction;

          (h)  Agent  shall have received certificates of status with respect to
     Borrower,  each dated within 30 days of the Closing Date, such certificates
     to  be  issued  by the appropriate officer of the jurisdictions (other than
     the  jurisdiction  of  organization of Borrower) in which its failure to be
     duly  qualified  or  licensed  would  constitute a Material Adverse Change,
     which certificates shall indicate that Borrower is in good standing in such
     jurisdictions;

          (i) Agent shall have received a certificate from the Secretary of each
     Guarantor  (i)  attesting  to  the resolutions of such Guarantor's Board of
     Directors  authorizing its execution, delivery, and performance of the Loan
     Documents  to  which  such  Guarantor is a party, (ii) authorizing specific
     officers  of  such Guarantor to execute the same and (iii) attesting to the
     incumbency  and  signatures  of  such  specific  officers  of  Guarantor;

          (j)  Agent  shall  have  received copies of each Guarantor's Governing
     Documents,  as  amended,  modified,  or  supplemented  to the Closing Date,
     certified  by  the  Secretary  of  such  Guarantor;

          (k)  Agent shall have received a certificate of status with respect to
     each  Guarantor, dated within 10 days of the Closing Date, such certificate
     to be issued by the appropriate officer of the jurisdiction of organization
     of  such Guarantor, which certificate shall indicate that such Guarantor is
     in  good  standing  in  such  jurisdiction;

          (l)  Agent  shall have received certificates of status with respect to
     each  Guarantor,  each  dated  within  30  days  of  the Closing Date, such
     certificates  to  be issued by the appropriate officer of the jurisdictions
     (other  than  the  jurisdiction of organization of such Guarantor) in which
     its  failure  to  be duly qualified or licensed would constitute a Material
     Adverse Change, which certificates shall indicate that such Guarantor is in
     good  standing  in  such  jurisdictions;

          (m)  Agent  shall  have  received a certificate of insurance, together
     with  the  endorsements  thereto,  as  are  required  by Section 5.8 of the
                                                              -----------
     Agreement,  the form and substance of which shall be satisfactory to Agent;

          (n)  Agent  shall  have  received  a  Collateral Access Agreement with
     respect  to  the  following  location:  11661 San Vicente Blvd., Suite 404;

          (o) Agent shall have received an opinion of Borrower's counsel in form
     and  substance  satisfactory  to  Agent;

          (p)  Borrower shall have the Required Availability after giving effect
     to  the  initial extensions of credit hereunder and the payment of all fees
     and expenses required to be paid by Borrower on the Closing Date under this
     Agreement  or  the  other  Loan  Documents;

          (q) Agent shall have completed its business, legal, and collateral due
     diligence,  including  (i)  a collateral audit and review of Borrower's and
     its  Subsidiaries  books  and  records  and  verification  of  Borrower's
     representations  and warranties to Lender Group, the results of which shall
     be  satisfactory  to Agent, and (ii) an inspection of each of the locations
     where Borrower's and its Subsidiaries' Inventory is located, the results of
     which  shall  be  satisfactory  to  Agent;

          (r)  Agent shall have received completed reference checks with respect
     to  Borrower's  senior management, the results of which are satisfactory to
     Agent  in  its  sole  discretion;

<PAGE>

          (s) Agent shall have received a set of Projections of Borrower for the
     3  year period following the Closing Date (on a year by year basis, and for
     the  1  year period following the Closing Date, on a month by month basis),
     in  form  and  substance (including as to scope and underlying assumptions)
     satisfactory  to  Agent;

          (t)  Borrower  shall  have  paid all Lender Group Expenses incurred in
     connection  with  the  transactions  evidenced  by  this  Agreement;

          (u) Agent shall have received the written consent of each of the Joint
     Venture  Parties  identified  on Schedule J-1 to the pledge by the Borrower
                                      ------------
     and  the  Guarantors of their interests the in applicable Joint Ventures as
     Collateral  to  Agent,  which  consents  shall  be  in  form  and substance
     satisfactory  to  Agent;

          (v)  Borrower  and  each  of  its Subsidiaries shall have received all
     licenses,  approvals  or  evidence  of  other  actions  required  by  any
     Governmental  Authority  in  connection  with the execution and delivery by
     Borrower or its Subsidiaries of the Loan Documents or with the consummation
     of  the  transactions  contemplated  thereby;  and

          (w)  all  other  documents  and  legal  matters in connection with the
     transactions  contemplated  by  this  Agreement  shall have been delivered,
     executed,  or  recorded  and shall be in form and substance satisfactory to
     Agent.

     3.2 CONDITIONS PRECEDENT TO ALL EXTENSIONS OF CREDIT. The obligation of the
         ------------------------------------------------
Lender  Group  (or  any  member  thereof)  to make any Advances hereunder (or to
extend any other credit hereunder) at any time shall be subject to the following
conditions  precedent:

          (a)  the  representations and warranties of Borrower contained in this
     Agreement  or  in the other Loan Documents shall be true and correct in all
     material  respects  (except  that  such  materiality qualifier shall not be
     applicable to any representations and warranties that already are qualified
     or  modified  by  materiality in the text thereof) on and as of the date of
     such  extension of credit, as though made on and as of such date (except to
     the  extent  that  such  representations and warranties relate solely to an
     earlier  date);

          (b)  no  Default  or  Event  of  Default  shall  have  occurred and be
     continuing on the date of such extension of credit, nor shall either result
     from  the  making  thereof;

          (c)  no  injunction,  writ,  restraining  order, or other order of any
     nature restricting or prohibiting, directly or indirectly, the extending of
     such  credit shall have been issued and remain in force by any Governmental
     Authority  against  Borrower,  Agent,  or  any  Lender;

          (d)  no Material Adverse Change shall have occurred since December 31,
     2005,  and

          (e)  other  than  in  connection with the initial Advances made on the
     Closing  Date and Advances requested by the Borrower in order to consummate
     the  assignment contemplated in Section 3.3(a), the conditions specified in
                                     -------------
     Section  3.3(a)  shall  have  been  satisfied,  and
     --------------

          (f)  other  than  in  connection with the initial Advances made on the
     Closing  Date and Advances requested by the Borrower in order to consummate
     the  assignment contemplated in Section 3.3(a), the conditions specified in
                                     -------------
     Section 3.3(d)  shall  have  been  satisfied.
     -------------

     3.3  CONDITIONS  SUBSEQUENT  TO  THE  INITIAL  EXTENSION  OF  CREDIT.  The
          ---------------------------------------------------------------
obligation  of  the  Lender  Group  (or  any member thereof) to continue to make
Advances  (or  otherwise extend credit hereunder) is subject to the fulfillment,
on  or  before  the date applicable thereto, of each of the following conditions
subsequent  (the  failure  by  Borrower  to  so perform or cause to be performed
constituting  an  Event  of  Default):

<PAGE>

          (a)  Within  15 days after the Closing Date, Agent shall have received
     evidence  in form and substance satisfactory to Agent that (A) the MAG Note
     shall  have been assigned by the Michigan Avenue Group to Borrower, (B) all
     guarantees (including the MAG Guaranty) by Borrower or any Guarantor of the
     obligations  under  the MAG Note shall have been released, (C) all security
     interests  granted  by  Borrower  or  any  Guarantor in connection with any
     guaranty referenced in clause (B) above shall have been terminated, (D) the
     original  MAG  Note (or a satisfactory lost note affidavit duly executed by
     The Michigan Avenue Group) shall have been delivered by the Michigan Avenue
     Group  to  Borrower,  and  (E)  to the extent that a lost note affidavit is
     delivered as contemplated pursuant to clause (D) above, Borrower shall have
     received  a  replacement note duly executed by Chicago - Grill on the Alley
     LLC.

          (b)  Within 120 days after the Closing Date, Agent shall have received
     evidence  reasonably  satisfactory  to Agent that the Inactive Subsidiaries
     have  been  dissolved,

          (c)  Within  60 days after the Closing Date, Agent shall have received
     satisfactory evidence that each of the tax liens identified on Schedule P-2
                                                                    ------------
     shall  have  been released or vacated and have been removed from the record
     of  each  of  the  respective  government  agencies,

          (d) Within 15 days after the Closing Date, Agent shall have received a
     certificate  of  status with respect to The Grill Limited Partnership, such
     certificate  to be issued by the appropriate officer of the jurisdiction of
     organization  of  The  Grill  Limited  Partnership, which certificate shall
     indicate  that  The  Grill  Limited Partnership is in good standing in such
     jurisdiction,  and

          (e)  Within  15  days  after  the  Closing  Date,  Borrower shall have
     delivered  the  original  MAG  Note,  endorsed  in  blank,  to  Agent.

     3.4 TERM. This Agreement shall continue in full force and effect for a term
         ----
ending  on  March  9, 2011 (the "Maturity Date"). The foregoing notwithstanding,
                                 -------------
the  Lender  Group,  upon  the  election of the Required Lenders, shall have the
right  as  set  forth  in  Section  8  to  terminate  its obligations under this
                           ----------
Agreement  immediately  and  without  notice  upon the occurrence and during the
continuation  of  an  Event  of  Default.

     3.5  EFFECT  OF  TERMINATION. On the date of termination of this Agreement,
          -----------------------
all  Obligations  immediately  shall  become  due  and payable without notice or
demand.  No  termination  of this Agreement, however, shall relieve or discharge
Borrower  or  its  Subsidiaries  of  their  duties,  Obligations,  or  covenants
hereunder  or  under  any  other  Loan  Document  and  the  Agent's Liens in the
Collateral  shall  remain in effect until all Obligations have been paid in full
and  the  Lender Group's obligations to provide additional credit hereunder have
been  terminated.  When  this  Agreement  has  been  terminated  and  all of the
Obligations  have  been  paid  in  full  (other  than  unasserted  contingent
indemnification  Obligations)  and  the  Lender  Group's  obligations to provide
additional  credit  under  the  Loan Documents have been terminated irrevocably,
Agent  will,  at  Borrower's  sole  expense, execute and deliver any termination
statements,  lien  releases,  mortgage  releases,  re-assignments of trademarks,
discharges  of  security  interests,  and  other  similar  discharge  or release
documents  (and,  if applicable, in recordable form) as are reasonably necessary
to  release,  as  of  record,  the  Agent's  Liens  and  all notices of security
interests  and  liens previously filed by Agent with respect to the Obligations.

     3.6  EARLY  TERMINATION  BY  BORROWER. Borrower has the option, at any time
          --------------------------------
upon  90  days  prior  written  notice to Agent, to terminate this Agreement and
terminate the Commitments hereunder by paying to Agent, in cash, the Obligations
(other  than  unasserted  contingent  indemnification  Obligations), in full. If
Borrower  has  sent  a  notice of termination pursuant to the provisions of this
Section, then the Commitments shall terminate and Borrower shall be obligated to
repay the Obligations, in full, on the date set forth as the date of termination
of  this  Agreement  in  such  notice.

<PAGE>

4.     REPRESENTATIONS  AND  WARRANTIES.

     In  order to induce the Lender Group to enter into this Agreement, Borrower
makes  the  following  representations  and warranties to the Lender Group which
shall  be  true, correct, and complete, in all material respects, as of the date
hereof,  and  shall be true, correct, and complete, in all material respects, as
of  the Closing Date and at and as of the date of the making of each Advance (or
other extension of credit) made thereafter, as though made on and as of the date
of  such  Advance (or other extension of credit) (except to the extent that such
representations  and  warranties  relate  solely  to  an  earlier date) and such
representations  and warranties shall survive the execution and delivery of this
Agreement:

     4.1  NO  ENCUMBRANCES.  Borrower  and  its  Subsidiaries  have  good  and
          ----------------
indefeasible title to, or a valid leasehold interest in, their personal property
assets and good and marketable title to, or a valid leasehold interest in, their
Real Property, in each case, free and clear of Liens except for Permitted Liens.

     4.2  [INTENTIONALLY  OMITTED].
           ----------------------

     4.3  [INTENTIONALLY  OMITTED].
           ----------------------

     4.4  EQUIPMENT.  Each  material  item  of  Equipment  of  Borrower  and its
          ---------
Subsidiaries  is  used  or held for use in their business and is in good working
order,  ordinary  wear  and  tear  and  damage  by  casualty  excepted.

     4.5 LOCATION OF INVENTORY AND EQUIPMENT. The Inventory and Equipment (other
         -----------------------------------
than  vehicles or Equipment out for repair) of Borrower and its Subsidiaries are
not  stored  with  a bailee, warehouseman, or similar party and are located only
at,  or  in-transit  between,  the locations identified on Schedule 4.5 (as such
                                                           ------------
Schedule  may  be  updated  pursuant  to  Section  5.9).
                                          ------------

     4.6  [INTENTIONALLY  OMITTED].
           ----------------------

     4.7  JURISDICTION  OF  ORGANIZATION; LOCATION OF CHIEF EXECUTIVE OFFICE;
          -------------------------------------------------------------------
ORGANIZATIONAL  IDENTIFICATION  NUMBER;  COMMERCIAL  TORT  CLAIMS.
 ----------------------------------------------------------------

          (a)  The name of (within the meaning of Section 9-503 of the Code) and
     jurisdiction of organization of Borrower and each Guarantor is set forth on
     Schedule  4.7(a)  (as  such  Schedule  may  be updated from time to time to
     ---------------
     reflect  changes  permitted  to  be  made  under  Section  6.5).
                                                       ------------

          (b)  The  chief  executive  office  of  Borrower and each Guarantor is
     located  at  the address indicated on Schedule 4.7(b) (as such Schedule may
                                           --------------
     be  updated from time to time to reflect changes permitted to be made under
     Section  5.9).
     ------------

          (c)  Borrower's  and  each  Guarantor's  organizational identification
     numbers, if any, are identified on Schedule 4.7(c) (as such Schedule may be
                                        --------------
     updated  fromtime  to  time  to  reflect changes permitted to be made under
     Section  6.5).
     ------------

          (d)  As  of  the Closing Date, Borrower and the Guarantors do not hold
     any  commercial  tort  claims,  except  as  set  forth  on Schedule 4.7(d).
                                                                --------------

     4.8  DUE  ORGANIZATION  AND  QUALIFICATION;  SUBSIDIARIES.
          ----------------------------------------------------

          (a) Borrower is duly organized and existing and in good standing under
     the  laws  of  the  jurisdiction  of  its  organization and qualified to do
     business in any state where the failure to be so qualified reasonably could
     be  expected  to  result  in  a  Material  Adverse  Change.

          (b) Set forth on Schedule 4.8(b) (as such Schedule may be updated from
                           --------------
     time  to  time to reflect changes permitted to be made under Section 5.16),
                                                                  ------------
     is  a  complete and accurate description of the authorized capital Stock of

<PAGE>

     Borrower,  by  class,  and,  as  of  the Closing Date, a description of the
     number  of shares of each such class that are issued and outstanding. Other
     than  as described on Schedule 4.8(b), there are no subscriptions, options,
     warrants,  or  calls  relating  to  any shares of Borrower's capital Stock,
     including  any  right  of  conversion  or  exchange  under  any outstanding
     security  or  other  instrument.  Borrower is not subject to any obligation
     (contingent  or otherwise) to repurchase or otherwise acquire or retire any
     shares  of  its  capital  Stock  or  any  security  convertible  into  or
     exchangeable  for  any  of  its  capital  Stock.

          (c) Set forth on Schedule 4.8(c) (as such Schedule may be updated from
                           --------------
     time  to  time to reflect changes permitted to be made under Section 5.16),
                                                                  ------------
     is  a  complete  and  accurate  list  of  Borrower's  direct  and  indirect
     Subsidiaries, showing: (i) the jurisdiction of their organization, (ii) the
     number of shares of each class of common and preferred Stock authorized for
     each  of  such Subsidiaries, and (iii) the number and the percentage of the
     outstanding  shares  of  each  such  class  owned directly or indirectly by
     Borrower.  All of the outstanding capital Stock of each such Subsidiary has
     been  validly  issued  and  is  fully  paid  and  non-assessable.

          (d)  Except  as  set  forth  on  Schedule  4.8(c),  there  are  no
     subscriptions,  options,  warrants,  or  calls  relating  to  any shares of
     Borrower's  Subsidiaries'  capital Stock, including any right of conversion
     or  exchange  under  any  outstanding security or other instrument. Neither
     Borrower  nor  any  of  its  Subsidiaries  is  subject  to  any  obligation
     (contingent  or otherwise) to repurchase or otherwise acquire or retire any
     shares  of  Borrower's  Subsidiaries'  capital  Stock  or  any  security
     convertible  into  or  exchangeable  for  any  such  capital  Stock.

     4.9  DUE  AUTHORIZATION;  NO  CONFLICT.
          ---------------------------------

          (a)  The  execution,  delivery,  and  performance  by Borrower of this
     Agreement  and  the  Loan  Documents  to which it is a party have been duly
     authorized  by  all  necessary  action  on  the  part  of  Borrower.

          (b)  The  execution,  delivery,  and  performance  by Borrower of this
     Agreement  and  the  other Loan Documents to which it is a party do not and
     will  not  (i)  violate  any  provision  of federal, state, or local law or
     regulation  applicable  to  Borrower,  the Governing Documents of Borrower,
     (ii)  violated  any  order,  judgment,  or  decree  of  any  court or other
     Governmental  Authority  binding  on  Borrower,  which violation reasonably
     could  be  expected  to result in a Material Adverse Change, (iii) conflict
     with,  result  in  a  breach of, or constitute (with due notice or lapse of
     time  or  both)  a  default  under  any  material contractual obligation of
     Borrower,  which  conflict, breach, or default reasonably could be expected
     to  result  in  a  Material  Adverse  Change, (iv) result in or require the
     creation  or  imposition  of  any  Lien  of  any nature whatsoever upon any
     properties  or  assets of Borrower, other than Permitted Liens, (v) require
     any approval of Borrower's interestholders, or (vi) require any approval or
     consent of any Person under any material contractual obligation of Borrower
     (other  than  consents  or  approvals  that have been obtained and that are
     still  in  force  and  effect),  which  approval or consent if not obtained
     reasonably  could  be  expected  to  result  in  a Material Adverse Change.

          (c)  Other  than  the  filing  of  financing  statements and the other
     filings  or  actions  necessary  to  perfect  Liens granted to Agent in the
     Collateral,  and  appropriate filings, if any, with the SEC, the execution,
     delivery,  and performance by Borrower of this Agreement and the other Loan
     Documents  to  which  Borrower  is  a party do not and will not require any
     registration  with,  consent, or approval of, or notice to, or other action
     with  or  by,  any Governmental Authority, other than consents or approvals
     that  have  been  obtained  and  that  are  still  in  force  and  effect.

          (d) This Agreement and the other Loan Documents to which Borrower is a
     party,  and  all  other  documents  contemplated  hereby  and thereby, when
     executed  and  delivered  by Borrower will be the legally valid and binding
     obligations  of  Borrower,  enforceable against Borrower in accordance with
     their  respective  terms, except as enforcement may be limited by equitable
     principles  or  by  bankruptcy,  insolvency, reorganization, moratorium, or
     similar  laws  relating  to  or  limiting  creditors'  rights  generally.
<PAGE>

          (e)  The  Agent's  Liens  are  validly created, and, other than (i) in
     respect  of real property, aircraft, fixtures, motor vehicles, or any other
     asset evidenced by a certificate of title and (ii) any Deposit Accounts and
     Securities Accounts not subject to a Control Agreement, upon (w) the filing
     of  appropriate financing statements in the appropriate filing offices, (x)
     the  recordation  of  appropriate  documentation  with  the  United  States
     Copyright  Office  and  the  United  States Patent and Trademark Office, as
     applicable,  (y)  the  execution  of Control Agreements with respect to the
     Deposit Accounts identified on Schedule 2.7(a), and (z) the delivery to the
     Agent  of  any  certificates  evidencing  Stock  pledged under the Security
     Agreement,  perfected,  and first priority Liens, subject only to Permitted
     Liens.

          (f)  The execution, delivery, and performance by each Guarantor of the
     Loan  Documents  to  which  it  is a party have been duly authorized by all
     necessary  action  on  the  part  of  such  Guarantor.

          (g)  The execution, delivery, and performance by each Guarantor of the
     Loan  Documents  to which it is a party do not and will not (i) violate any
     provision  of federal, state, or local law or regulation applicable to such
     Guarantor  or  the  Governing Documents of any such Guarantor, (ii) violate
     any order, judgment, or decree of any court or other Governmental Authority
     binding  on such Guarantor, which violation reasonably could be expected to
     result  in  a  Material  Adverse  Change,  (iii) conflict with, result in a
     breach  of,  or  constitute  (with  due  notice or lapse of time or both) a
     default  under  any  material  contractual  obligation  of  such  Guarantor
     conflict,  breach,  or  default reasonably could be expected to result in a
     Material  Adverse  Change,  (iv)  result  in  or  require  the  creation or
     imposition  of  any  Lien  of  any nature whatsoever upon any properties or
     assets  of  such  Guarantor,  other  than  Permitted Liens, (v) require any
     approval  of such Guarantor's interestholders, or (vi) require any approval
     or  consent of any Person under any material contractual obligation of such
     Guarantor  (other  than  consents  or approvals that have been obtained and
     that  are  still  in  force  and  effect), which approval or consent if not
     obtained  reasonably  could  be  expected  to  result in a Material Adverse
     Change.

          (h) Other than the filing of financing statements and other filings or
     actions  necessary to perfect Liens granted to Agent in the Collateral, and
     appropriate  filings,  if  any,  with the SEC, the execution, delivery, and
     performance by each Guarantor of the Loan Documents to which such Guarantor
     is  a  party do not and will not require any registration with, consent, or
     approval  of,  or  notice  to, or other action with or by, any Governmental
     Authority,  other  than  consents  or approvals that have been obtained and
     that  are  still  in  force  and  effect.

          (i)  The  Loan  Documents  to which each Guarantor is a party, and all
     other  documents  contemplated  hereby  and  thereby,  when  executed  and
     delivered  by  such  Guarantor  will  be  the  legally  valid  and  binding
     obligations  of  such  Guarantor,  enforceable  against  such  Guarantor in
     accordance  with  their  respective  terms,  except  as  enforcement may be
     limited  by  equitable  principles  or  by  bankruptcy,  insolvency,
     reorganization,  moratorium,  or  similar  laws  relating  to  or  limiting
     creditors'  rights  generally.

     4.10  LITIGATION.  Other than (i) those matters disclosed on Schedule 4.10,
           ----------
(ii) those matters that the Borrower reasonably believes are claims that will be
covered by insurance (subject to customary deductibles), and (iii) those matters
arising  after  the Closing Date that reasonably could not be expected to result
in  a  Material  Adverse  Change,  there  are  no actions, suits, or proceedings
pending  or,  to  the best knowledge of Borrower, threatened against Borrower or
any  of  its  Subsidiaries.

     4.11  NO  MATERIAL  ADVERSE  CHANGE.  All  financial statements relating to
           -----------------------------
Borrower and its Subsidiaries that have been delivered by Borrower to the Lender
Group  have  been  prepared  in  accordance  with  GAAP  (except, in the case of
unaudited  financial  statements, for the lack of footnotes and being subject to
year-end  audit  adjustments)  and  present  fairly  in  all  material respects,
Borrower's  and its Subsidiaries' financial condition as of the date thereof and
results  of  operations for the period then ended. There has not been a Material
Adverse  Change with respect to Borrower and its Subsidiaries since December 31,
2005.

<PAGE>

     4.12  FRAUDULENT  TRANSFER.
           --------------------

          (a)  Each  of  Borrower  and  each  of  its  Subsidiaries  is Solvent.

          (b)  No  transfer  of  property  is  being  made  by  Borrower  or its
     Subsidiaries  and  no  obligation  is  being  incurred  by  Borrower or its
     Subsidiaries  in  connection  with  the  transactions  contemplated by this
     Agreement  or the other Loan Documents with the intent to hinder, delay, or
     defraud either present or future creditors of Borrower or its Subsidiaries.

     4.13  EMPLOYEE  BENEFITS. None of Borrower, any of its Subsidiaries, or any
           ------------------
of  their  ERISA  Affiliates  maintains  or  contributes  to  any  Benefit Plan.

     4.14  ENVIRONMENTAL CONDITION. Except as set forth on Schedule 4.14, (a) to
           -----------------------
Borrower's  actual  knowledge  (without  any  duty  to  investigate),  none  of
Borrower's  or  any  Guarantor's  properties  or  assets  has  ever been used by
Borrower, the Guarantors, or by previous owners or operators in the disposal of,
or  to  produce,  store,  handle,  treat,  release,  or transport, any Hazardous
Materials,  where such use, production, storage, handling, treatment, release or
transport  was  in  violation,  in  any  material  respect,  of  any  applicable
Environmental  Law,  (b)  to  Borrower's  actual  knowledge (without any duty to
investigate),  none  of  Borrower's  or the Guarantors' properties or assets has
ever  been  designated or identified in any manner pursuant to any environmental
protection  statute as a Hazardous Materials disposal site, (c) neither Borrower
nor  any  Guarantor  has  received  notice  that  a  Lien  arising  under  any
Environmental  Law has attached to any revenues or to any Real Property owned or
operated  by  Borrower  or  any  Guarantor,  and  (d)  neither  Borrower nor any
Guarantor has received a summons, citation, notice, or directive from the United
States  Environmental  Protection  Agency  or  any  other  federal  or  state
governmental  agency  concerning  any  action  or  omission  by  Borrower or any
Guarantor  resulting  in  the releasing or disposing of Hazardous Materials into
the  environment.

     4.15  INTELLECTUAL  PROPERTY.  Borrower  and  its Subsidiaries own, or hold
           ----------------------
licenses  in,  all  trademarks, trade names, copyrights, patents, patent rights,
and  licenses  that  are  necessary  to the conduct of its business as currently
conducted,  and  attached hereto as Schedule 4.15 (as updated from time to time)
                                    -------------
is  a  true,  correct,  and  complete  listing  of  all material patents, patent
applications,  trademarks,  trademark  applications,  copyrights,  and copyright
registrations,  in  each  case,  to the extent registered with the United States
Patent  and  Trademark  Office or with the United States Copyright Office, as to
which  Borrower  or  one  of  its  Subsidiaries  is the owner or is an exclusive
licensee.

     4.16  LEASES.  Borrower and its Subsidiaries enjoy peaceful and undisturbed
           ------
possession  under  all  leases  material to their business and to which they are
parties  or  under which they are operating, and all of such material leases are
valid  and  subsisting  and  no material default by Borrower or its Subsidiaries
exists  under  any  of  them  (other  than  defaults  that  are the subject of a
Permitted  Protest).

     4.17  DEPOSIT  ACCOUNTS AND SECURITIES ACCOUNTS. Set forth on Schedule 4.17
           -----------------------------------------               -------------
is  a  listing  of  all  of  Borrower's and the Guarantors' Deposit Accounts and
Securities  Accounts,  including,  with  respect  to  each  bank  or  securities
intermediary  (a)  the  name  and  address  of  such Person, and (b) the account
numbers  of  the  Deposit  Accounts  or Securities Accounts maintained with such
Person.

     4.18 COMPLETE DISCLOSURE. All factual information (taken as a whole), other
          -------------------
than  projections,  furnished by or on behalf of Borrower or its Subsidiaries in
writing  to  Agent  or  any  Lender  (including all information contained in the
Schedules  hereto  or  in  the  other  Loan  Documents)  for  purposes  of or in
connection  with  this  Agreement,  the other Loan Documents, or any transaction
contemplated herein or therein is, and all other such factual information (taken
as  a  whole),  other  than  projections, hereafter furnished by or on behalf of
Borrower or its Subsidiaries in writing to Agent or any Lender will be, true and
accurate,  in all material respects, on the date as of which such information is
dated or certified and not incomplete by omitting to state any fact necessary to

<PAGE>

make  such information (taken as a whole) not misleading in any material respect
at  such  time  in  light  of the circumstances under which such information was
provided. On the Closing Date, the Closing Date Projections represent, and as of
the  date on which any other Projections are delivered to Agent, such additional
Projections represent Borrower's good faith estimate of its and its Subsidiaries
future  performance  for  the  periods  covered  thereby  based upon assumptions
believed  by  Borrower  to be reasonable at the time of the delivery thereof, it
being  recognized that such projections as to future events are not to be viewed
as  facts  and  that  actual results during the period or periods covered by any
such  projections  may  differ  from  the  projected  results.

     4.19  INDEBTEDNESS.  Set forth on Schedule 4.19 is a true and complete list
           ------------
of  all  Indebtedness  of  Borrower and its Subsidiaries outstanding immediately
prior  to  the Closing Date that is to remain outstanding after the Closing Date
and  such  Schedule accurately sets forth the aggregate principal amount of such
Indebtedness  and  the  principal  terms  thereof.

     4.20  MATERIAL  CONTRACTS.  Set  forth  on  Schedule 4.20 is a complete and
           -------------------                   -------------
accurate  list as of the Closing Date of all Material Contracts of each Borrower
or  Guarantor, showing the parties and subject matter thereof and amendments and
modifications  thereto.  Each such Material Contract (i) is, to the knowledge of
the  Borrower  and  each Guarantor, in full force and effect and is binding upon
and  enforceable  against  each  Borrower  or  Guarantor that is a party thereto
(except  as  enforceability may be limited by applicable bankruptcy, insolvency,
reorganization,  moratorium  or  similar  laws  affecting  the  enforcement  of
creditors'  rights  generally  and  by  general  equitable  principals  (whether
enforcement is sought by proceedings in equity or at law)) and, to the knowledge
of  such Borrower or Guarantor, all other parties thereto in accordance with its
terms,  (ii) has not been otherwise amended or modified, and (iii) except to the
extent the same could not reasonably be expected to result in a Material Adverse
Change, is not in default due to the action of the Borrower or any Guarantor or,
to  the  knowledge  of  the  Borrower or any Guarantor, any other party thereto.

     4.21  PERMITS,  LICENSES,  ETC.  Each Borrower and Guarantor has, and is in
           ------------------------
compliance  with  all governmental permits, licenses, authorizations, approvals,
entitlements and accreditations required for such Person lawfully to own, lease,
manage or operate, or to acquire, each business currently owned, leased, managed
or operated, or previously acquired, by such Person (except where the failure to
have or be in compliance with any such permit, license, authorization, approval,
entitlement  or  accreditation  could  not reasonably be expected to result in a
Material  Adverse  Change).  No condition exists or event has occurred which, in
itself  or  with  the giving of notice or lapse of time or both, would result in
the  suspension,  revocation,  impairment, forfeiture or non-renewal of any such
required permit, license, authorization, approval, entitlement or accreditation,
and  there  is  no  outstanding  claim that any thereof is not in full force and
effect  (except  where  such  suspension,  revocation,  impairment,  forfeiture,
non-renewal,  or  claim could not reasonably be expected to result in a Material
Adverse  Change).  Schedule  4.21 sets forth a complete and accurate list, as of
                   --------------
the  Closing Date, listed by Restaurant, of all licenses (the "Liquor Licenses")
                                                               ---------------
permitting  Borrower  and  Guarantors  to  sell and dispense alcoholic beverages
within  each  of  the Restaurants for on-premises consumption. Each Borrower and
Guarantor  is  in  compliance  with  all state, municipal and other governmental
laws, regulations and rules with respect to the sale of liquor and all alcoholic
beverages  and has the right to sell liquor at retail for consumption within the
Restaurants,  subject to and in accordance with all applicable provisions of the
Liquor  Licenses  (except where failure to be in such compliance or to have such
right  could not reasonably be expected to result in a Material Adverse Change).

     4.22  INACTIVE SUBSIDIARIES. (a) No Inactive Subsidiary (i) has any assets,
           ---------------------
(ii)  has  any  liabilities  in  excess of $50,000 in the aggregate, or (iii) is
engaged  in  any business activity whatsoever, and (b) the Inactive Subsidiaries
(taken  as  a  whole)  do  not  have  liabilities  in  excess of $100,000 in the
aggregate.

5.   AFFIRMATIVE  COVENANTS.

     Borrower  covenants  and  agrees  that,  until  termination  of  all of the
Commitments  and  payment  in  full of the Obligations, Borrower shall and shall
cause  each  of  its  Subsidiaries  to  do  all  of  the  following:

     5.1  ACCOUNTING  SYSTEM.  Maintain  a  system  of  accounting  that enables
          ------------------
Borrower  to  produce  financial statements in accordance with GAAP and maintain

<PAGE>

records pertaining to the Collateral consistent with its past practices and that
contain  information  as from time to time reasonably may be requested by Agent.

     5.2 COLLATERAL REPORTING. Provide Agent (and if so requested by Agent, with
         --------------------
copies  for  each Lender) with each of the documents and reports set forth below
at  the  times  specified  below:

Monthly (not         (a)     a Borrowing Base Certificate,
later than the
20th day of          (b)     sales reports for each currently operating
each month           Restaurant of Borrower and each of its Subsidiaries for the
                     prior month (including average check counts on a
                     consolidated basis),

Quarterly (not       (c)     a report regarding Borrower's and its Subsidiaries'
later than 30        accrued, but unpaid,
days after the
end of each          (d)     a report, in the form produced by the Borrower as
quarter)             of the Closing Date, on each of the Restaurants, including
                     a listing of any new Restaurants or locations owned, leased
                     or franchised by Borrower or any of its Subsidiaries, and a
                     reconciliation explaining any change (whether due to a
                     Permitted Disposition or otherwise) in the ownership or
                     operation of the Restaurants and locations listed in the
                     corresponding report for the immediately preceding quarter,

Upon request         (e)     a summary aging, by vendor, of Borrower's and its
by Agent in          Subsidiaries' accounts payable and any book overdraft and
its Permitted        an aging, by vendor, of any held checks,

                     (f)     a detailed report regarding Borrower's and its
                     Subsidiaries' cash and Cash Equivalents, including an
                     indication of which amounts constitute Qualified Cash, and

                     (g)     such other reports as to the Collateral or the
                     financial condition of Borrower and its Subsidiaries, as
                     Agent may reasonably request.

     5.3  FINANCIAL  STATEMENTS,  REPORTS,  CERTIFICATES. Deliver to Agent, with
          ----------------------------------------------
copies to each Lender, each of the financial statements, reports, or other items
specified  below  at the times specified below in form satisfactory to Agent. In
addition,  Borrower  agrees  that no Guarantor will have a fiscal year different
from  that  of  Borrower.

as soon as
available,           (a)     an unaudited consolidated and consolidating income
but in any event     statement covering Borrower's and its Subsidiaries'
within 30 days (45   operations during such period,
days in the case of
a month that is the  (b)     a company prepared profit and loss report showing
end of one of        sales, food cost, total direct labor, benefits, gross
Borrower's fiscal    profit, advertising expenses, and total occupancy expense
quarters) after      for each of the currently operating Restaurants for such
the end of each      period and for the then current fiscal year to date, and
month during each
of Borrower's fiscal (c)     a Compliance Certificate.
years

<PAGE>

as soon as           (d)     an unaudited consolidated and consolidating balance
available,           sheet, income statement, and statement of cash flow
but in any event     covering Borrower's and its Subsidiaries' operations during
within 45 days       such period, and
after the end of
each fiscal quarter  (e)     a Compliance Certificate.
during each of
Borrower's fiscal
years

as soon as           (f)     consolidated and consolidating financial statements
available, but in    of Borrower and its Subsidiaries for each such fiscal year,
any event within 90  with such consolidated (but not the consolidating financial
days after the end   statements) financial statements audited by Moss Adams or
of each of           other independent certifgied public accountants of a
Borrower's fiscal    similar or larger size reasonably acceptable to Agent and
years                certified, without any qualifications (including any (A)
                     "going concern" or similar qualification or exception or
                     (B) qualification or exception as to the scope of such
                     audit), by such accountants to have been prepared in
                     accordance with GAAP (such audited consolidated financial
                     statements to include a balance sheet, income statement,
                     and statement of cash flow and, if prepared, such
                     accountants' letter to management), and

                     (g)     a Compliance Certificate.

as soon as           (h)     copies of Borrower's Projections, in form and
available, but in    substance (including as to scope and underlying
any event within 30  assumptions) satisfactory to AGent, in its Permitted
days prior to the    Discretion, for the forthcoming 3 years, year by year, and
start of each        for the forthcoming fiscal year, quarter by quarter and
of Borrower's        month by month, certified by the chief financial officer of
fiscal years,        Borrower as being such officer's good faith estimate of the
                     financial performance of Borrower during the period covered
                     thereby.

if and when filed    (i)     Form 10-Q quarterly reports, Form 10-K annual
by Borrower,         reports, and Form 8-K current reports,

                     (j)     any other filings made by Borrower with the SEC,
                     and

                     (k)     any other information that is provided by Borrower
                     to its shareholders generally.

<PAGE>

promptly, but in     (l)     notice of such event or condition and a statement
any event within 5   of the curative action that Borrower proposes to take with
Business Days after  respect thereto.
Borrower has
knowledge of any
event or condition
that constitutes a
Default or an Event
of Default,

promptly after the   (m)     notice of any action, suit, or proceeding brought
commencement         by or against Borrower or any of its Subsidiaries before
thereof, but in any  any Governmental Authority, which action, suit, or
event within 5       proceeding involves claims, damages, or amounts in dispute
Business Days after  of $100,000 or more.
the service of
process with
respect thereto
on Borrower or any
of its Subsidiaries,

upon the request     (n)     any other information reasonably requested relating
of Agent in its      to the financial condition of Borrower or its Subsidiaries.
Permitted
Discretion,

     5.4 GUARANTOR REPORTS. Cause each Guarantor to deliver its annual financial
         -----------------
statements  at  the time when Borrower provides its audited financial statements
to  Agent,  but only to the extent such Guarantor's financial statements are not
consolidated  with  Borrower's  financial  statements.

     5.5  INSPECTION.  Permit  Agent  and its duly authorized representatives or
          ----------
agents to visit any of its properties and inspect any of its assets or books and
records, to examine and make copies of its books and records, and to discuss its
affairs,  finances,  and accounts with, and to be advised as to the same by, its
officers  and  employees  at such reasonable times and intervals as Agent or any
such Lender may designate and, so long as no Default or Event of Default exists,
during  normal  business  hours  and  with  reasonable prior notice to Borrower.

     5.6  MAINTENANCE OF PROPERTIES. Maintain and preserve all of its properties
          -------------------------
which  are  necessary  or  useful  in the proper conduct to its business in good
working  order  and  condition,  ordinary wear, tear, and casualty excepted (and
except  where the failure to do so could not be expected to result in a Material
Adverse  Change),  and  comply  at all times with the provisions of all material
leases to which it is a party as lessee, so as to prevent any loss or forfeiture
thereof or thereunder (except where the failure to do so could not reasonably be
expected  to  result  in  a  Material  Adverse  Change or where payments are the
subject  of  a  Permitted  Protest).

     5.7  TAXES.  Cause  all  assessments  and taxes, whether real, personal, or
          -----
otherwise,  due or payable by, or imposed, levied, or assessed against Borrower,
the  Guarantors,  or  any  of their respective assets to be paid in full, before
delinquency  or  before  the  expiration of any extension period, except (i) not
more  than $25,000 in the aggregate of assessments or taxes that are at any time
due  or  payable  by,  or  imposed,  levied, or assessed against Borrower or the
Guarantors,  in  the aggregate, and (ii) to the extent that the validity of such

<PAGE>

assessment or tax shall be the subject of a Permitted Protest. Borrower will and
will  cause the Guarantors to make timely payment or deposit of all tax payments
and  withholding  taxes  required  of  it and them by applicable laws, including
those  laws  concerning  F.I.C.A., F.U.T.A., state disability, and local, state,
and  federal  income  taxes,  and  will,  upon request, furnish Agent with proof
satisfactory to Agent indicating that Borrower and the Guarantors have made such
payments  or  deposits.

     5.8  INSURANCE.
          ---------

          (a)  At  Borrower's expense, maintain insurance respecting its and its
     Subsidiaries'  assets  wherever  located,  covering loss or damage by fire,
     theft, explosion, and all other hazards and risks as ordinarily are insured
     against  by  other  Persons  engaged  in  the  same  or similar businesses.
     Borrower  also  shall maintain business interruption, public liability, and
     product  liability  insurance,  as  well  as  insurance  against  larceny,
     embezzlement, and criminal misappropriation. All such policies of insurance
     shall  be  in  such  amounts  and  with  such  insurance  companies  as are
     reasonably satisfactory to Agent. Borrower shall deliver copies of all such
     policies  to  Agent with an endorsement naming Agent as the sole loss payee
     (under  a  satisfactory  lender's  loss  payable endorsement) or additional
     insured,  as  appropriate.  Each  policy  of insurance or endorsement shall
     contain  a clause requiring the insurer to give not less than 30 days prior
     written  notice to Agent in the event of cancellation of the policy for any
     reason  whatsoever.

          (b)  Borrower  shall  give  Agent  prompt notice of any loss exceeding
     $250,000  covered  by  such  insurance.  So long as no Event of Default has
     occurred  and  is  continuing,  Borrower  shall have the exclusive right to
     adjust  any losses payable under any such insurance policies which are less
     than  $250,000.  Following the occurrence and during the continuation of an
     Event of Default, or in the case of any losses payable under such insurance
     exceeding  $250,000, Agent shall have the exclusive right, in its Permitted
     Discretion, to adjust any losses payable under any such insurance policies,
     without  any  liability  to  Borrower  whatsoever  in  respect  of  such
     adjustments.  Any  monies  received  as  payment  for  any  loss  under any
     insurance  policy mentioned above (other than liability insurance policies)
     or  as  payment  of any award or compensation for condemnation or taking by
     eminent  domain, shall be paid over to Agent to be applied at the option of
     the  Required  Lenders either to the prepayment of the Obligations or shall
     be disbursed to Borrower under staged payment terms reasonably satisfactory
     to  Agent  for  application  to  the  cost  of  repairs,  replacements,  or
     restorations;  provided,  however, that, with respect to any such monies in
                    --------   -------
     an aggregate amount during any 12 consecutive month period not in excess of
     $250,000, so long as (A) no Default or Event of Default shall have occurred
     and  is  continuing,  (B)  Borrower's  Excess  Availability is greater than
     $1,000,000, (C) Borrower shall have given Agent prior written notice of its
     or its Subsidiary's intention to apply such monies to the costs of repairs,
     replacement,  or  restoration  of  the property which is the subject of the
     loss,  destruction, or taking by condemnation, (D) the monies are held in a
     cash  collateral  account  in  which  Agent  has a perfected first priority
     security  interest,  and  (E)  Borrower  or  its  Subsidiary completes such
     repairs,  replacements,  or  restoration  within 360 days after the initial
     receipt of such monies, Borrower shall have the option to apply such monies
     to  the costs of repairs, replacement, or restoration of the property which
     is  the  subject of the loss, destruction, or taking by condemnation unless
     and  to  the  extent that such applicable period shall have expired without
     such  repairs,  replacements, or restoration being made, in which case, any
     amounts remaining in the cash collateral account shall be paid to Agent and
     applied  as  set  forth  above.

     5.9  LOCATION  OF  BOOKS AND RECORDS. Keep Borrower's and its Subsidiaries'
          -------------------------------
books  and  records  only  at the locations identified on Schedule 4.5 and their
                                                          ------------
chief  executive  offices  only  at the locations identified on Schedule 4.7(b);
                                                                --------------
provided,  however, that Borrower may amend Schedule 4.5 or Schedule 4.7 so long
--------   ------                           ------------    ------------
as  such amendment occurs by written notice to Agent not less than 30 days prior
to  the  date  on which such books and records are moved to such new location or
such chief executive office is relocated, so long as such new location is within
the  continental  United  States.

     5.10  COMPLIANCE  WITH LAWS. Comply with the requirements of all applicable
           ---------------------
laws,  rules,  regulations, and orders of any Governmental Authority, other than
laws, rules, regulations, and orders the non-compliance with which, individually
or  in  the  aggregate, could not reasonably be expected to result in a Material
Adverse  Change.

<PAGE>

     5.11  LEASES.  Pay  when  due all rents and other amounts payable under any
           ------
material  leases  to  which Borrower or any of its Subsidiaries is a party or by
which  Borrower's  or  any  such  Subsidiaries' properties and assets are bound,
unless  the  failure  to  do  so  could  not be expected to result in a Material
Adverse  Change  or  such  payments  are  the  subject  of  a Permitted Protest.

     5.12 EXISTENCE. At all times preserve and keep in full force and effect (a)
          ---------
Borrower's  and  the  Guarantors'  valid existence and good standing and (b) any
rights,  franchises,  permits,  licenses  (including  Liquor  Licenses),
authorizations,  entitlements,  accreditations,  or  other approvals material to
their  businesses;  provided,  that  Borrower  and  the  Guarantors shall not be
                    --------
required  to  preserve  any  such  rights and franchises described in clause (b)
above if (i) the board of directors, managing members or other governing body of
such Person shall determine that the preservation thereof is no longer desirable
in  the  conduct  of business of such Person and (ii) the failure to so preserve
such  rights  and  franchises  could  not  reasonably be expected to result in a
Material  Adverse  Change.

<PAGE>

     5.13  ENVIRONMENTAL.  (a)  Except  as  could  not reasonably be expected to
           -------------
result  in  a  Material  Adverse  Change,  (i) keep any property either owned or
operated by Borrower or its Subsidiaries free of any Environmental Liens or post
bonds  or  other  financial  assurances sufficient to satisfy the obligations or
liability  evidenced  by  such  Environmental  Liens,  and  (ii)  comply  with
Environmental  Laws  and provide to Agent documentation of such compliance which
Agent  reasonably  requests,  (b)  promptly  notify  Agent  of  any release of a
Hazardous  Material  in  any  reportable quantity from or onto property owned or
operated  by Borrower or any Guarantor and take any Remedial Actions required to
abate  said  release  or  otherwise  to  come  into  compliance  with applicable
Environmental  Law, and (c) promptly, but in any event within 5 Business Days of
its  receipt thereof, provide Agent with written notice of any of the following:
(i)  notice that an Environmental Lien has been filed against any of the real or
personal  property  of  Borrower  or  its Subsidiaries, (ii) commencement of any
Environmental  Action  or  notice  that  an  Environmental  Action will be filed
against Borrower or its Subsidiaries, and (iii) notice of a violation, citation,
or  other administrative order which reasonably could be expected to result in a
Material  Adverse  Change.  For  purposes of clarification, with respect to Real
Property  that  is  leased  (as  opposed  to  owned in fee) by the Borrower or a
Guarantor,  an  Environmental  Lien recorded against the fee owner's interest in
such  property  and  not against the Borrower's or any Guarantor's interest as a
tenant  of  such property shall not constitute a violation of this Section 5.13.
                                                                   ------------

     5.14  DISCLOSURE  UPDATES.  Promptly  and in no event later than 5 Business
           -------------------
Days after obtaining knowledge thereof, notify Agent if any written information,
exhibit,  or  report furnished to the Lender Group contained, at the time it was
furnished,  any  untrue  statement  of  a  material fact or omitted to state any
material  fact necessary to make the statements contained therein not misleading
in  light  of  the  circumstances  in  which made. The foregoing to the contrary
notwithstanding,  any  notification pursuant to the foregoing provision will not
cure  or  remedy  the effect of the prior untrue statement of a material fact or
omission of any material fact nor shall any such notification have the effect of
amending  or  modifying  this  Agreement  or  any  of  the  Schedules  hereto.

     5.15  CONTROL  AGREEMENTS.  Take all reasonable steps in order for Agent to
           -------------------
obtain control in accordance with Sections 8-106, 9-104, 9-105, 9-106, and 9-107
of  the  Code with respect to (subject to the proviso contained in Section 6.12)
                                                                   ------------
all  of  its  Securities  Accounts,  Deposit Accounts, electronic chattel paper,
investment  property,  and  letter-of-credit  rights.

     5.16  FORMATION OF SUBSIDIARIES. At the time that Borrower or any Guarantor
           -------------------------
forms  any  direct  or  indirect  Subsidiary  or acquires any direct or indirect
Subsidiary  after  the  Closing Date, Borrower or such Guarantor shall (a) cause
such  new  wholly-owned Subsidiary to provide to Agent a joinder to the Guaranty
and  the Security Agreement, together with such other personal property security
documents,  as  well  as  appropriate  financing  statements,  all  in  form and
substance  satisfactory  to  Agent  (including being sufficient to grant Agent a
first  priority  Lien  (subject to Permitted Liens) in and to the assets of such
newly  formed  or  acquired Subsidiary), (b) provide to Agent a pledge agreement
and  appropriate  certificates and powers or financing statements, hypothecating
all  of  the  direct or beneficial ownership interest in such new Subsidiary, in

<PAGE>

form  and  substance  satisfactory  to  Agent,  and  use commercially reasonable
efforts  to  provide  Agent  with,  in  the  case  of  Subsidiaries that are not
wholly-owned,  written  consent  from  the  other  owner  of  such  newly formed
Subsidiary's  Stock  to  the  pledge by the Borrower or applicable Guarantor, as
applicable,  of  their interests in the Stock of such newly formed Subsidiary as
Collateral  to  Agent,  and  (c)  provide  to  Agent  all  other  documentation,
including,  if  required  by  Agent  in  its  Permitted  Discretion, one or more
opinions  of  counsel reasonably satisfactory to Agent, which in Agent's opinion
is  appropriate  with  respect  to  the execution and delivery of the applicable
documentation referred to above. Any document, agreement, or instrument executed
or  issued  pursuant  to  this  Section  5.16  shall  be  a  Loan  Document.

     5.17  FURTHER  ASSURANCES.  At any time upon the request of Agent, Borrower
           -------------------
shall execute or deliver to Agent, and shall promptly (but in any event within 5
Business  Days after Agent's request) cause the Guarantors to execute or deliver
to  Agent,  any  and  all financing statements, original financing statements in
lieu  of continuation statements, fixture filings, security agreements, pledges,
assignments,  endorsements  of  certificates  of  title, and all other documents
(collectively,  the "Additional Documents") that Agent may reasonably request in
                     --------------------
form  and  substance  reasonably  satisfactory to Agent, to create, perfect, and
continue  perfected  (subject  only to Permitted Liens) or to better perfect the
Agent's  Liens in the assets of Borrower and its Subsidiaries (whether now owned
or  hereafter arising or acquired, tangible or intangible, real or personal), to
create  and perfect Liens in favor of Agent in any fee interest in Real Property
acquired  after  the  Closing  Date, and in order to fully consummate all of the
transactions  contemplated  hereby  and  under  the other Loan Documents. To the
maximum  extent  permitted by applicable law, upon the occurrence and during the
continuance  of  an  Event  of Default, Borrower authorizes Agent to execute any
such  Additional  Documents in Borrower's name and authorizes Agent to file such
executed  Additional  Documents  in  any  appropriate  filing  office.

     5.18  [INTENTIONALLY  OMITTED].
            ----------------------

6.   NEGATIVE  COVENANTS.

     Borrower  covenants  and  agrees  that,  until  termination  of  all of the
Commitments  and  payment in full of the Obligations, Borrower will not and will
not  permit  any  of  its  Subsidiaries  to  do  any  of  the  following:

     6.1  INDEBTEDNESS.  Create,  incur,  assume, suffer to exist, guarantee, or
          ------------
otherwise  become  or remain, directly or indirectly, liable with respect to any
Indebtedness,  except:

          (a)  Indebtedness  evidenced  by  this  Agreement  and  the other Loan
     Documents,

          (b)  Indebtedness  set  forth  on  Schedule  4.19  and any Refinancing
                                             --------------
     Indebtedness  in  respect  of  such  Indebtedness,

          (c)  Permitted  Purchase  Money  Indebtedness  and  any  Refinancing
     Indebtedness  in  respect  of  such  Indebtedness,

          (d)  Indebtedness  under any Hedging Agreement so long as such Hedging
     Agreements are used solely as a part of its normal business operations as a
     risk  management  strategy  or  hedge against changes resulting from market
     operations  and  not  as  a  means  to speculate for investment purposes on
     trends  and  shifts  in  financial  or  commodities  markets,

          (e)  Indebtedness  incurred  in  the ordinary course of business under
     performance  or  surety  bonds,

          (f)  endorsement  of  instruments  or other payment items for deposit,

          (g)  Indebtedness  comprised  of  Permitted  Investments,

<PAGE>

          (h) Indebtedness in respect of insurance premium finance arrangements,
     provided  that,  such  Indebtedness  is  incurred in the ordinary course of
     business  of  the  Borrower  or  applicable  Guarantor,

          (i)  unsecured  guarantees  of  Indebtedness permitted hereunder to be
     incurred  by  the  Person  executing  such  guaranty,

          (j)  to  the  extent  fully  cash  collateralized,  Indebtedness in an
     aggregate  amount  not  to  exceed  $2,000,000  owed  to Existing Lender in
     respect  of the Existing Letter of Credit issued by Existing Lender for the
     account  of  the  Borrower,

          (k)  until  the  earlier  to  occur of (i) the fifteenth day after the
     Closing  Date  and  (ii)  the satisfaction of the conditions subsequent set
     forth in Section 3.3(a), Indebtedness of Borrower and Grill Concepts, Inc.,
     a  California  corporation  under  the  MAG  Guaranty;  and

          (l)  unsecured  Indebtedness  in  addition to the foregoing; provided,
     that  the aggregate amount of all such additional unsecured Indebtedness at
     any  one  time  outstanding  shall  not  exceed  $250,000.

     6.2  LIENS.  Create,  incur,  assume,  or  suffer  to  exist,  directly  or
          -----
indirectly,  any  Lien  on  or  with  respect to any of its assets, of any kind,
whether  now  owned  or  hereafter acquired, or any income or profits therefrom,
except  for  Permitted  Liens.

     6.3     RESTRICTIONS  ON  FUNDAMENTAL  CHANGES.
             --------------------------------------

          (a)  Enter  into  any  merger,  consolidation,  reorganization,  or
     recapitalization,  or  reclassify its Stock; provided that Borrower and its
     Subsidiaries  may  enter  into  Permitted  Mergers,

          (b)  Except  to  the  extent  required  pursuant  to  Section  3.3(b),
                                                                --------------
     liquidate,  wind  up,  or  dissolve  itself  (or  suffer any liquidation or
     dissolution),

          (c)  Other  than  Permitted Mergers or Permitted Dispositions, convey,
     sell,  lease,  license,  assign,  transfer, or otherwise dispose of, in one
     transaction or a series of transactions, all or any substantial part of its
     assets,  or

          (d)  Other  than the closure of not more than three Restaurants in any
     fiscal  year,  or as required pursuant to Section 3.3(b), suspend or go out
                                               -------------
     of  a  substantial  portion  of  its  or  their  business.

     6.4     DISPOSAL  OF  ASSETS.  Other  than  Permitted Dispositions, convey,
             --------------------
sell,  lease,  license,  assign,  transfer,  or  otherwise  dispose  of  any  of
Borrower's  or  any  Guarantor's  assets.

     6.5  CHANGE NAME. Change Borrower's or any Guarantor's name, organizational
          -----------
identification  number,  state  of  organization  or  organizational  identity;
provided, however, that Borrower or any Guarantor may change their names upon at
--------  -------
least  15  days  prior written notice to Agent of such change and so long as, at
the  time  of  such  written  notification,  Borrower  or Guarantor provides any
financing  statements  necessary  to  perfect and continue perfected the Agent's
Liens.

     6.6  NATURE  OF BUSINESS. Make any change in the principal nature of its or
          -------------------
their  business,  it  being  agreed  that  the Borrower and its Subsidiaries may
continue  to  own,  operate,  manage,  and  develop  restaurants  and  engage in
businesses  reasonably  related  thereto.

     6.7  PREPAYMENTS  AND  AMENDMENTS.
          ----------------------------

          (a)  Except  in  connection with Refinancing Indebtedness permitted by
     Section  6.1,  optionally  prepay,  redeem, defease, purchase, or otherwise
     ------------
     acquire  any  Indebtedness  of Borrower or its Subsidiaries, other than the
     Obligations  in  accordance  with  this  Agreement,

<PAGE>

          (b)  Except  in  connection with Refinancing Indebtedness permitted by
     Section  6.1,  make  any  payment  on account of Indebtedness that has been
     ------------
     contractually  subordinated  in  right  of  payment  if such payment is not
     permitted  at  such  time  under  the  subordination  terms and conditions,

          (c)  Except  in  connection with Refinancing Indebtedness permitted by
     Section  6.1,  directly  or  indirectly, amend, modify, alter, increase, or
     ------------
     change  any  of  the  terms  or  conditions  of  any agreement, instrument,
     document, indenture, or other writing evidencing or concerning Indebtedness
     permitted  under  Section  6.1(b)  or  (c),
                       --------------       ---

          (d)  Except  as  set forth on Schedule 6.7(d) attached hereto, pay any
                                        --------------
     management  fees or any other fees or expenses (including the reimbursement
     thereof by Borrower or any of its Subsidiaries) pursuant to any management,
     consulting  or other services agreement to any of the shareholders or other
     equityholders  of  Borrower or any of its Subsidiaries or other Affiliates,
     or  to  any  Subsidiaries  or  Affiliates  of  any  Guarantor,

          (e)  Amend,  modify  or  otherwise  change  its  Governing  Documents,
     including  by the filing or modification of any certificate of designation,
     or  any agreement or arrangement entered into by it, with respect to any of
     its  Stock  (including  any shareholders' agreement), or enter into any new
     agreement  with  respect  to  any of its Stock, except any such amendments,
     modifications  or  changes  or  any  such  new  agreements  or arrangements
     pursuant  to  this clause (e) that either individually or in the aggregate,
     could not reasonably be expected to result in a Material Adverse Change, or

          (f)  Agree  to  any  material amendment or other material change to or
     material waiver of any of its rights under any Material Contract, except to
     the  extent  such  amendment,  change,  or  waiver  could not reasonably be
     expected  to  result  in  a  Material  Adverse  Change.

     6.8  CHANGE  OF  CONTROL.  Cause,  permit, or suffer any Change of Control.
          -------------------

     6.9  CONSIGNMENTS. Consign any of its or their Inventory or sell any of its
          ------------
or  their Inventory on bill and hold, sale or return, sale on approval, or other
conditional  terms  of  sale.

     6.10  DISTRIBUTIONS.  Make any distribution or declare or pay any dividends
           -------------
(in  cash  or  other  property, other than common Stock) on Borrower's Stock, or
purchase,  acquire,  redeem,  or  retire  any of Borrower's Stock, of any class,
whether  now  or  hereafter  outstanding.

     6.11  ACCOUNTING METHODS. Modify or change its fiscal year or its method of
           ------------------
accounting  (other than as may be required to conform to GAAP) or, without first
providing  prior  written  notice  thereof  to  Agent,  enter  into,  modify, or
terminate  any  agreement  currently  existing, or at any time hereafter entered
into  with any third party accounting firm or service bureau for the preparation
or  storage  of  Borrower's or its Subsidiaries' accounting records without said
accounting  firm  or  service  bureau  agreeing  to  provide  Agent  information
regarding  Borrower's  and  its  Subsidiaries'  financial  condition.

     6.12 INVESTMENTS. Except for Permitted Investments, directly or indirectly,
          -----------
make  or  acquire  any Investment or incur any liabilities (including contingent
obligations)  for  or in connection with any Investment; provided, however, that
                                                         --------  -------
Borrower  and  the  Guarantors  shall  not have Permitted Investments in Deposit
Accounts  or  Securities  Accounts if (a) the balance of such Deposit Account or
Securities  Account  exceeds $50,000 or (b) the aggregate balance of all Deposit
Accounts  and  Securities Accounts associated with any single Restaurant exceeds
$50,000,  unless  in  the case of each of clauses (a) and (b) above, Borrower or
such  Guarantor,  as  applicable,  and the applicable securities intermediary or
bank  have  entered into Control Agreements governing such Permitted Investments
in  order to perfect (and further establish) the Agent's Liens in such Permitted
Investments.  Subject to the foregoing proviso, Borrower shall not and shall not
permit the Guarantors to establish or maintain any Deposit Account or Securities
Account  unless Agent shall have received a Control Agreement in respect of such
Deposit  Account  or  Securities  Account.  For  purposes of clarification, this
Section  6.12  shall  not  apply  to  any  Managed  Account.
-------------

<PAGE>

     6.13  TRANSACTIONS  WITH  AFFILIATES.  Directly or indirectly enter into or
           ------------------------------
permit  to  exist  any transaction with any Affiliate of Borrower except for (a)
transactions  between any Subsidiary of Borrower that is not a Guarantor and any
other  Subsidiary  of Borrower that is not a Guarantor, (b) transactions between
the  Borrower  and  any  of  the Guarantors, (c) transactions between any of the
Guarantors,  and  (d)  transactions  that  (i) are in the ordinary course of the
Borrower's  and  the  Guarantors'  business,  (ii)  are upon fair and reasonable
terms,  (iii)  if  they  involve  one  or  more  payments  by  Borrower  or  its
Subsidiaries in excess of $50,000, are fully disclosed to Agent, and (iv) are no
less  favorable  to  Borrower  or its Subsidiaries, as applicable, than would be
obtained  in  an  arm's  length  transaction with a non-Affiliate; provided that
nothing  in this Section 6.13 shall be deemed to prohibit or otherwise limit the
transactions  described  in  the  Management  Agreements.

     6.14  USE  OF  PROCEEDS.  Use  the proceeds of the Advances for any purpose
           -----------------
other  than  (a)  on  the  Closing  Date, (i) to repay, in full, the outstanding
principal,  accrued  interest,  and  accrued fees and expenses owing to Existing
Lender,  and  (ii)  to  pay  transactional fees, costs, and expenses incurred in
connection  with  this Agreement, the other Loan Documents, and the transactions
contemplated  hereby  and  thereby,  and (b) thereafter, for working capital and
general  corporate  purposes  of  the  Borrower  and  its  Subsidiaries.

     6.15  [INTENTIONALLY  OMITTED].
           ------------------------

     6.16  FINANCIAL  COVENANTS.
           --------------------

          (a)  Fail  to  maintain  or  achieve:

               (i)  MINIMUM  EBITDA.  EBITDA,  measured  on a fiscal quarter-end
          basis  for the twelve month period then ended, of at least $2,500,000.

               (ii)  LEVERAGE  RATIO.  A  Leverage  Ratio,  measured on a fiscal
          quarter-end basis for the twelve month period then ended, of less than
          2.25  :  1.00.

               (iii)  FOUR  WALL  CASH  FLOW. Four Wall Cash Flow, measured on a
          fiscal quarter-end basis for the twelve month period then ended, of at
          least  $5,000,000.

          (b)  Make:

               (i)  MAINTENANCE  CAPITAL  EXPENDITURES.  Maintenance  Capital
          Expenditures  in  any fiscal year in excess of the amount set forth in
          the  following  table  for  the  applicable  period:

<TABLE>
<CAPTION>

Fiscal Year     Fiscal Year     Fiscal Year     Fiscal Year     Fiscal Year    Fiscal Year
2006            2007            2008            2009            2010           2011
-----------     -----------     -----------     -----------     -----------    ------------
<S>                <C>             <C>             <C>             <C>             <C>
$1,000,000      $1,200,000      $1,400,000      $1,400,000      $1,400,000     $1,400,000
</TABLE>

               (ii)  GROWTH CAPITAL EXPENDITURES. Growth Capital Expenditures in
          any  fiscal  year  in  excess of the amount set forth in the following
          table  for  the  applicable  period:

<TABLE>
<CAPTION>

Fiscal Year     Fiscal Year     Fiscal Year     Fiscal Year     Fiscal Year   Fiscal Year
2006            2007            2008            2009            2010          2011
-----------     -----------     -----------     -----------     -----------   -----------
<S>                 <C>            <C>              <C>            <C>           <C>
$2,500,000      $3,500,000      $3,500,000      $3,500,000      $3,500,000    $3,500,000
</TABLE>

               (iii)  If during any fiscal year the amount of all Growth Capital
          Expenditures  or Maintenance Capital Expenditures permitted to be made

<PAGE>

          during  such  period  is not so made (such unused portion, the "Unused
                                                                          ------
          Amount"),  100% of such Unused Amount the ("Carry-Over Amount") may be
          ------                                      -----------------
          used  in the immediately succeeding Fiscal Year to make Growth Capital
          Expenditures or Maintenance Capital Expenditures; provided that (A) in
                                                            --------
          such  succeeding  Fiscal  Year, actual Growth Capital Expenditures and
          Actual Maintenance Capital Expenditures made from time to time in such
          succeeding  Fiscal  Year  shall be deemed to have been made first from
          the  amount  permitted to be made for such Fiscal Year pursuant to the
          charts  set  forth in clauses (i) and (ii) above and, second, from the
          Carry-Over  Amount,  and  (B) no amounts carried forward to any Fiscal
          Year  pursuant  to terms of this proviso may be carried forward to any
          Fiscal Year thereafter.

     6.17  LIMITATION  ON  ISSUANCE OF CAPITAL STOCK. Except for the issuance or
           -----------------------------------------
sale of common Stock or Permitted Preferred Stock by the Borrower, issue or sell
or  enter  into  any  agreement  or arrangement for the issuance and sale of, or
permit  any  of its Subsidiaries to issue or sell or enter into any agreement or
arrangement  for  the  issuance  and  sale  of,  any  shares  of  its Stock, any
securities convertible into or exchangeable for its Stock or any warrants.

     6.18  INACTIVE SUBSIDIARIES. Permit any Inactive Subsidiary to (i) have any
           ---------------------
assets,  (ii) have any liabilities (y) in excess of $50,000 or (z) together with
the  liabilities  of  all  Inactive  Subsidiaries,  in excess of $100,000 in the
aggregate, or (iii) engage in any business activity whatsoever.

7.     EVENTS  OF  DEFAULT.

     Any  one  or  more  of  the  following  events shall constitute an event of
default  (each,  an  "Event  of  Default")  under  this  Agreement:
                      ------------------

     7.1 If Borrower fails to pay when due and payable, or when declared due and
payable  pursuant to the terms of this Agreement or any other Loan Document, (a)
all  or  any portion of the Obligations consisting of interest, fees, or charges
due  the  Lender Group, reimbursement of Lender Group Expenses, or other amounts
(other than any portion thereof constituting principal) constituting Obligations
(including  any  portion  thereof  that  accrues  after  the  commencement of an
Insolvency Proceeding, regardless of whether allowed or allowable in whole or in
part  as  a claim in any such Insolvency Proceeding), and such failure continues
for  a  period of 3 Business Days, or (b) all or any portion of the principal of
the Obligations;

     7.2 If Borrower or any of its Subsidiaries:

          (a)  fails  to  perform  or  observe  any covenant or other agreement
     contained in any of Sections 2.7, 3.3, 5.2, 5.3, 5.4, 5.5, 5.8, 5.14, 5.16,
                         ------------  ---  ---  ---  ---  ---  ---  ----  ----
     5.17,  and  6.1 through 6.18 of this Agreement or Section 6 of the Security
     ----        ---         ----
     Agreement;

          (b)  fails  to  perform  or  observe  any covenant or other agreement
     contained  in  any of Sections 5.6, 5.7, 5.9, 5.10, 5.11, 5.12, and 5.15 of
                           ------------  ---  ---  ----  ----  ----      ----
     this Agreement and such failure continues for a period of 10 days after the
     earlier  of  (i)  the  date on which any Authorized Officer of the Borrower
     shall have actual knowledge thereof or (ii) written notice thereof is given
     to Borrower by Agent; or

          (c)  fails  to  perform  or  observe  any covenant or other agreement
     contained in this Agreement, or in any of the other Loan Documents, in each
     case,  other  than  any  such  covenant or agreement that is the subject of
     another provision of this Section 7 (in which event such other provision of
                               ---------
     this Section 7 shall govern), and such failure continues for a period of 25
          ---------
     days  after  the earlier of (i) the date on which any Authorized Officer of
     any  Borrower  shall  have  actual knowledge thereof or (ii) written notice
     thereof is given to Borrower by Agent;

<PAGE>

     7.3  If  any  significant portion of Borrower's or any of its Subsidiaries'
assets  is  attached,  seized,  subjected  to  a writ or distress warrant, or is
levied  upon,  or  comes into the possession of any third Person and the same is
not discharged before the earlier of 60 days after the date it first arises or 5
days  prior to the date on which such property or asset is subject to forfeiture
by Borrower or the applicable Subsidiary;

     7.4  If  an  Insolvency  Proceeding  is commenced by Borrower or any of its
Subsidiaries;

     7.5 If an Insolvency Proceeding is commenced against Borrower or any of its
Subsidiaries  and  any  of  the  following  events  occur:  (a) Borrower or such
Subsidiary consents to the institution of such Insolvency Proceeding against it,
(b)  the  petition  commencing  the  Insolvency  Proceeding  is  not  timely
controverted,  (c)  the  petition  commencing  the  Insolvency Proceeding is not
dismissed  within  60  calendar  days  of the date of the filing thereof, (d) an

interim  trustee  is  appointed  to  take  possession  of all or any substantial
portion  of  the  properties  or assets of, or to operate all or any substantial
portion of the business of, Borrower or any of its Subsidiaries, or (e) an order
for relief shall have been issued or entered therein;

     7.6  If  Borrower or any of its Subsidiaries is enjoined, restrained, or in
any  way  prevented, in each case, by court order from continuing to conduct (a)
all  of  its  business  affairs  or (b) a portion of its business affairs, which
portion  represented  10%  or  more  of  the  revenues  of  the Borrower and its
Subsidiaries  during  the  twelve  month period immediately preceding such court
order;

     7.7  If  one  or  more  judgments, orders, or awards involving an aggregate
amount  of  $250,000  or  more  (except to the extent fully covered by insurance
pursuant  to which the insurer has accepted liability therefor in writing) shall
be  entered or filed against Borrower or any of its Subsidiaries or with respect
to  any  of  their  respective assets, and the same is not released, discharged,
bonded against, or stayed pending appeal before the earlier of 30 days after the
date  of such entry or filing or 5 days prior to the date on which such asset is
subject to being forfeited by Borrower or the applicable Subsidiary;

     7.8  If  there  is a default in one or more agreements to which Borrower or
any  of  its  Subsidiaries is a party with one or more third Persons relative to
Borrower's  or  any  of  its  Subsidiaries'  Indebtedness involving an aggregate
amount of $250,000 or more, and such default (i) occurs at the final maturity of
the  obligations thereunder, or (ii) results in a right by such third Person(s),
irrespective  of  whether exercised, to accelerate the maturity of Borrower's or
the applicable Subsidiary's obligations thereunder;

     7.9 If any warranty, representation, statement, or Record made herein or in
any  other  Loan Document or delivered to Agent or any Lender in connection with
this  Agreement  or  any other Loan Document proves to be untrue in any material
respect  (except  that such materiality qualifier shall not be applicable to any
representations  and  warranties  that  already  are  qualified  or  modified by
materiality  in the text thereof) as of the date of issuance or making or deemed
making  thereof  (except  to the extent that such representations and warranties
relate solely to an earlier date);

     7.10  If  the  obligation of any Guarantor under the Guaranty is limited or
terminated  by  operation  of  law  or  by such Guarantor, or any such Guarantor
becomes the subject of an Insolvency Proceeding;

     7.11  If there is an indictment, or a threatened indictment of the Borrower
or  any  of  its  Subsidiaries  under  any  criminal statute, or commencement or
threatened commencement of criminal or civil proceedings against any Borrower or
Guarantor,  pursuant  to  which statute or proceedings the penalties or remedies
sought  or  available  include  forfeiture  to any Governmental Authority of any
material portion of the property of such Person;

     7.12  If  there is a cessation of a substantial part of the business of the
Borrower and the Guarantors, taken as a whole, for a period which materially and
adversely  affects  the  ability  of  such Borrower or Guarantor to continue its
business on a profitable basis;

<PAGE>

     7.13  If the Security Agreement or any other Loan Document that purports to
create  a  Lien,  shall,  for  any  reason,  fail or cease to create a valid and
perfected  and,  subject  to Permitted Liens, first priority Lien on or security
interest  in  the  Collateral covered hereby or thereby, except as a result of a
disposition  of  the applicable Collateral in a transaction permitted under this
Agreement;

     7.14 If 5 or more Management Agreements are terminated or cancelled for any
reason;

     7.15  Any  provision  of  any  Loan  Document  (other  than  any immaterial
provisions) shall at any time for any reason be declared to be null and void, or
the  validity  or  enforceability  thereof shall be contested by Borrower or its
Subsidiaries,  or  a  proceeding  shall  be  commenced  by  Borrower  or  its
Subsidiaries, or by any Governmental Authority having jurisdiction over Borrower
or  its  Subsidiaries,  seeking  to establish the invalidity or unenforceability
thereof,  or  Borrower  or  its  Subsidiaries  shall  deny  that Borrower or its
Subsidiaries  has  any liability or obligation purported to be created under any
Loan Document.

8.   THE LENDER GROUP'S RIGHTS AND REMEDIES.

     8.1  RIGHTS AND REMEDIES. Upon the occurrence, and during the continuation,
          -------------------
of  an  Event  of  Default,  the Required Lenders (at their election but without
notice of their election and without demand) may authorize and instruct Agent to
do  any  one  or more of the following on behalf of the Lender Group (and Agent,
acting  upon  the  instructions  of  the  Required Lenders, shall do the same on
behalf of the Lender Group), all of which are authorized by Borrower:

          (a)  Declare all or  any portion of the Obligations, whether evidenced
     by  this  Agreement,  by  any  of  the  other Loan Documents, or otherwise,
     immediately due and payable;

          (b) Cease advancing money or extending credit to or for the benefit of
     Borrower  under  this  Agreement, under any of the Loan Documents, or under
     any other agreement between Borrower and the Lender Group;

          (c) Terminate this Agreement and any of the other Loan Documents as to
     any  future  liability  or  obligation  of  the  Lender  Group, but without
     affecting  any of the Agent's Liens in the Collateral and without affecting
     the Obligations;

          (d)  The  Lender  Group  shall  have  all  other  rights and  remedies
     available  at  law or in equity or pursuant to any other Loan Document. The
     foregoing to the contrary notwithstanding, upon the occurrence of any Event
     of  Default  described  in  Section  7.4 or Section 7.5, in addition to the
                                 ------------    -----------
     remedies  set  forth  above,  without  any  notice to Borrower or any other
     Person  or any act by the Lender Group, the Commitments shall automatically
     terminate  and  the Obligations then outstanding, together with all accrued
     and  unpaid  interest  thereon and all fees and all other amounts due under
     this  Agreement  and  the  other  Loan  Documents,  shall automatically and
     immediately  become  due and payable, without presentment, demand, protest,
     or notice of any kind, all of which are expressly waived by Borrower.

     8.2  REMEDIES CUMULATIVE. The rights and remedies of the Lender Group under
          -------------------
this  Agreement,  the  other  Loan  Documents, and all other agreements shall be
cumulative.  The  Lender  Group  shall  have  all  other rights and remedies not
inconsistent  herewith  as  provided  under  the  Code, by law, or in equity. No
exercise by the Lender Group of one right or remedy shall be deemed an election,
and  no  waiver  by  the  Lender Group of any Event of Default shall be deemed a
continuing  waiver.  No  delay  by  the  Lender Group shall constitute a waiver,
election, or acquiescence by it.

<PAGE>

9.     TAXES  AND  EXPENSES.

     If  Borrower fails to pay any monies (whether taxes, assessments, insurance
premiums, or, in the case of leased properties or assets, rents or other amounts
payable  under  such leases) due to third Persons, or fails to make any deposits
or  furnish  any required proof of payment or deposit, all as required under the
terms  of  this  Agreement, then, Agent, in its Permitted Discretion and without
prior  notice to Borrower, may do any or all of the following:  (a) make payment
of  the same or any part thereof, (b) set up such reserves against the Borrowing
Base  or  the  Maximum  Revolver  Amount as Agent deems necessary to protect the
Lender  Group  from  the exposure created by such failure, or (c) in the case of
the  failure  to  comply  with Section 5.8 hereof, obtain and maintain insurance
                               -----------
policies  of  the type described in Section 5.8 and take any action with respect
                                    -----------
to  such  policies as Agent deems prudent.  Any such amounts paid by Agent shall
constitute  Lender  Group Expenses and any such payments shall not constitute an
agreement by the Lender Group to make similar payments in the future or a waiver
by  the  Lender  Group of any Event of Default under this Agreement.  Agent need
not  inquire  as  to, or contest the validity of, any such expense, tax, or Lien
and  the  receipt  of the usual official notice for the payment thereof shall be
conclusive  evidence  that  the  same  was  validly  due  and  owing.

10.     WAIVERS;  INDEMNIFICATION.

     10.1  DEMAND;  PROTEST;  ETC.  Borrower  waives  demand, protest, notice of
           ----------------------
protest,  notice  of  default  or  dishonor,  notice  of payment and nonpayment,
nonpayment  at  maturity, release, compromise, settlement, extension, or renewal
of documents, instruments, chattel paper, and guarantees at any time held by the
Lender Group on which Borrower may in any way be liable.

     10.2  THE  LENDER  GROUP'S LIABILITY FOR COLLATERAL. Borrower hereby agrees
           ---------------------------------------------
that:  (a)  so  long  as  Agent complies with its obligations, if any, under the
Code,  the  Lender Group shall not in any way or manner be liable or responsible
for:  (i)  the  safekeeping  of  the Collateral, (ii) any loss or damage thereto
occurring  or  arising  in  any  manner  or  fashion  from  any cause, (iii) any
diminution  in  the  value  thereof,  or (iv) any act or default of any carrier,
warehouseman,  bailee,  forwarding  agency, or other Person, and (b) all risk of
loss,  damage,  or  destruction  of  the  Collateral shall be borne by Borrower,
except  any thereof resulting from the gross negligence or willful misconduct of
the  Agent  or  any  other member of the Lender Group as finally determined by a
court of competent jurisdiction.

     10.3  INDEMNIFICATION.  Borrower shall pay, indemnify, defend, and hold the
           ---------------
Agent-Related  Persons,  the Lender-Related Persons, and each Participant (each,
an  "Indemnified Person") harmless (to the fullest extent permitted by law) from
     ------------------
and  against  any  and  all  claims,  demands,  suits,  actions, investigations,
proceedings,  liabilities,  fines,  costs,  penalties,  and  damages,  and  all
reasonable  attorneys  fees  and  disbursements  and  other  costs  and expenses
actually  incurred in connection therewith or in connection with the enforcement
of  this  indemnification  (as  and  when  they are incurred and irrespective of
whether  suit  is  brought),  at  any  time  asserted  against, imposed upon, or
incurred  by  any of them (a) in connection with or as a result of or related to
the  execution, delivery, enforcement, performance, or administration (including
any  restructuring or workout with respect hereto) of this Agreement, any of the
other  Loan Documents, or the transactions contemplated hereby or thereby or the
monitoring  of Borrower's and its Subsidiaries' compliance with the terms of the
Loan  Documents,  and  (b)  with  respect  to  any investigation, litigation, or
proceeding related to this Agreement, any other Loan Document, or the use of the
proceeds  of  the  credit  provided  hereunder  (irrespective  of  whether  any
Indemnified  Person  is  a  party  thereto),  or  any  act,  omission, event, or
circumstance  in  any manner related thereto (each and all of the foregoing, the
"Indemnified  Liabilities").  The  foregoing  to  the  contrary notwithstanding,
 ------------------------
Borrower  shall  have no obligation to any Indemnified Person under this Section
                                                                         -------
10.3  with  respect  to  any  Indemnified  Liability  that  a court of competent
----
jurisdiction  finally  determines  to have resulted from the gross negligence or
willful  misconduct of such Indemnified Person. This provision shall survive the
termination  of  this  Agreement  and  the  repayment of the Obligations. If any
Indemnified  Person  makes  any  payment  to  any  other Indemnified Person with
respect  to  an  Indemnified  Liability  as  to  which  Borrower was required to
indemnify  the Indemnified Person receiving such payment, the Indemnified Person
making  such  payment  is  entitled to be indemnified and reimbursed by Borrower
with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO

<PAGE>

EACH  INDEMNIFIED  PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE
OR  IN  PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH
INDEMNIFIED PERSON OR OF ANY OTHER PERSON.

11.     NOTICES.

     Unless  otherwise  provided  in  this  Agreement, all notices or demands by
Borrower  or  Agent  to  the  other relating to this Agreement or any other Loan
Document  shall  be  in  writing  and (except for financial statements and other
informational  documents which may be sent by first-class mail, postage prepaid)
shall  be  personally delivered or sent by registered or certified mail (postage
prepaid,  return receipt requested), overnight courier, electronic mail (at such
email addresses as Borrower or Agent, as applicable, may designate to each other
in  accordance herewith), or telefacsimile to Borrower or Agent, as the case may
be,  at  its  address  set  forth  below:

If to Borrower:     GRILL CONCEPTS, INC.
                    11661 San Vicente Boulevard, Suite 404
                    Los Angeles, California 90049
                    Telecopier/Fax: (310) 820-6530
                    Telephone: (310) 820-5559
                    Attention: Philip Gay, Executive Vice President & CFO

If to Agent:        DIAMOND CREEK INVESTMENT PARTNERS
                    24 Corporate Plaza
                    Newport Beach, CA 92660
                    Attn: Tom Harrison
                    Fax No.:  949-720-4696
                    Telephone: 949-720-4699

with copies to:     PAUL HASTINGS JANOFSKY & WALKER LLP
                    515 S. Flower Street, Twenty Fifth Floor
                    Los Angeles, California  90071
                    Attn:  John Francis Hilson, Esq.
                    Fax No.:  213-627-0705

Agent  and  Borrower may change the address at which they are to receive notices
hereunder,  by  notice  in  writing  in  the foregoing manner given to the other
party.  All notices or demands sent in accordance with this Section 11, shall be
                                                            ----------
deemed  received  (i)  if mailed, when received or 3 days after deposited in the
mails,  whichever  occurs  first,  (ii)  if  telecopied,  when  transmitted  and
confirmation  received,  or  (iii)  if  delivered,  upon  delivery.

12.     CHOICE  OF  LAW  AND  VENUE;  JURY  TRIAL  WAIVER.

     (a)  THE  VALIDITY  OF THIS  AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS
EXPRESSLY  PROVIDED  TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH
OTHER  LOAN  DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF
AND  THEREOF,  AND  THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO
ALL  MATTERS  ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL
BE  DETERMINED  UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.

<PAGE>

     (b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION
WITH  THIS  AGREEMENT  AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED
ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS
LOCATED  IN  THE  COUNTY OF NEW YORK, STATE OF NEW YORK; PROVIDED, HOWEVER, THAT
                                                         --------  -------
ANY  SUIT  SEEKING  ENFORCEMENT  AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS
TO  BRING  SUCH  ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
BORROWER  AND  EACH  MEMBER  OF  THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED
UNDER  APPLICABLE  LAW,  ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM
                                                                           -----
NON  CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
---  ----------
ACCORDANCE WITH THIS SECTION 12(b).
                     -------------

     (c)  BORROWER  AND  EACH  MEMBER  OF  THE  LENDER  GROUP HEREBY WAIVE THEIR
RESPECTIVE  RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREIN,  INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL
OTHER  COMMON  LAW  OR  STATUTORY CLAIMS. BORROWER AND EACH MEMBER OF THE LENDER
GROUP  REPRESENT  THAT  EACH  HAS  REVIEWED  THIS  WAIVER AND EACH KNOWINGLY AND
VOLUNTARILY  WAIVES  ITS  JURY  TRIAL  RIGHTS  FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.  IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

13.     ASSIGNMENTS  AND  PARTICIPATIONS;  SUCCESSORS.

     13.1 ASSIGNMENTS AND PARTICIPATIONS.
          --------------------------------

     (a)  Any  Lender may assign and delegate to one or  more assignees (each an
"Assignee") that are Eligible Transferees all, or any ratable portion of all, of
 --------
the  Obligations,  the  Commitments and the other rights and obligations of such
Lender hereunder and under the other Loan Documents, in a minimum amount (unless
waived  by  the Agent) of $2,000,000 (except such minimum amount shall not apply
to  (x)  an  assignment  and  delegation by any Lender to any other Lender or an
Affiliate  of  the assigning Lender or a Related Fund of the assigning Lender or
(y)  a  group  of  new  Lenders, each of whom is an Affiliate of each other or a
Related  Fund  of  any such new Lender or an Affiliate of such new Lender to the
extent  that  the  aggregate amount to be assigned to all such new Lenders is at
least  $2,000,000);  provided,  however, that Borrower and Agent may continue to
                     --------   -------
deal  solely  and  directly  with such Lender in connection with the interest so
assigned  to  an  Assignee until (i) written notice of such assignment, together
with  payment  instructions,  addresses, and related information with respect to
the  Assignee,  have  been  given  to  Borrower and Agent by such Lender and the
Assignee, (ii) such Lender and its Assignee have delivered to Borrower and Agent
an  Assignment and Acceptance and Agent has notified the assigning Lender of its

receipt  thereof  in accordance with Section 13.1(b), and (iii) unless waived by
                                     --------------
the  Agent,  the  assigning  Lender  or  Assignee  has paid to Agent for Agent's
separate  account  a  processing fee in the amount of $3,500. Anything contained
herein  to  the  contrary  notwithstanding, the payment of any fees shall not be
required, the Assignee need not be an Eligible Transferee (x) if such assignment
is  in  connection  with  any  merger,  consolidation,  sale, transfer, or other
disposition  of all or any substantial portion of the business or loan portfolio
of  the assigning Lender or (y) if the assignee is a Related Fund of a Lender or
an Affiliate (other than an individual) of a Lender.

     (b) From and after the date that Agent notifies  the assigning Lender (with
a  copy  to Borrower) that it has received an executed Assignment and Acceptance
and,  if  applicable,  payment  of the required processing fee, (i) the Assignee
thereunder  shall  be  a  party  hereto  and,  to  the  extent  that  rights and

<PAGE>

obligations  hereunder  have been assigned to it pursuant to such Assignment and
Acceptance,  shall  have  the  rights and obligations of a Lender under the Loan
Documents,  and  (ii)  the assigning Lender shall, to the extent that rights and
obligations  hereunder  and under the other Loan Documents have been assigned by
it  pursuant  to  such  Assignment and Acceptance, relinquish its rights (except
with respect to Section 10.3 hereof) and be released from any future obligations
                ------------
under  this  Agreement (and in the case of an Assignment and Acceptance covering
all  or  the  remaining  portion of an assigning Lender's rights and obligations
under this Agreement and the other Loan Documents, such Lender shall cease to be
a  party  hereto and thereto), and such assignment shall effect a novation among
Borrower,  the  assigning  Lender,  and  the  Assignee;  provided, however, that
                                                         --------  -------
nothing  contained  herein  shall  release any assigning Lender from obligations
that  survive  the  termination  of  this  Agreement,  including  such assigning
Lender's  obligations  under  Section  15 and Section 16.7(a) of this Agreement.
                              -----------     --------------
Anything  contained  in  this  Section  13.1  to the contrary notwithstanding, a
                               -------------
Lender  may  assign any or all of its rights hereunder to a Related Fund of such
Lender  or an Affiliate of such Lender without delivering an executed Assignment
and  Acceptance  to  the  Agent  or the Borrower, and without the payment of the
above-referenced  processing fee; provided, however, that (x) Borrower and Agent
                                  --------  -------
may  continue  to  deal solely and directly with the assigning Lender until such
Assignment  and Acceptance has been delivered to Agent and Borrower, and (y) the
failure  of  such  assigning  Lender to deliver the Assignment and Acceptance to
Agent  or Borrower shall not affect the legality, validity, or binding effect of
such assignment.

     (c) By executing and delivering an Assignment and Acceptance, the assigning
Lender  thereunder  and  the  Assignee thereunder confirm to and agree with each
other  and  the  other  parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation or
warranty  and  assumes  no  responsibility  with  respect  to  any  statements,
warranties  or  representations  made in or in connection with this Agreement or
the  execution,  legality, validity, enforceability, genuineness, sufficiency or
value  of  this  Agreement or any other Loan Document furnished pursuant hereto,
(ii)  such  assigning  Lender makes no representation or warranty and assumes no
responsibility  with  respect  to  the  financial  condition  of Borrower or the
performance  or  observance  by  Borrower  of  any of its obligations under this
Agreement  or  any  other  Loan  Document  furnished pursuant hereto, (iii) such
Assignee  confirms  that it has received a copy of this Agreement, together with
such  other  documents  and information as it has deemed appropriate to make its
own  credit  analysis and decision to enter into such Assignment and Acceptance,
(iv)  such  Assignee  will,  independently and without reliance upon Agent, such
assigning  Lender  or  any  other  Lender,  and  based  on  such  documents  and
information  as  it shall deem appropriate at the time, continue to make its own
credit  decisions  in taking or not taking action under this Agreement, (v) such
Assignee appoints and authorizes Agent to take such actions and to exercise such
powers  under  this  Agreement  as  are delegated to Agent, by the terms hereof,
together  with  such  powers as are reasonably incidental thereto, and (vi) such
Assignee  agrees  that it will perform all of the obligations which by the terms
of this Agreement are required to be performed by it as a Lender.

     (d)  Immediately  upon  Agent's receipt of the required processing fee, if
applicable,  and  delivery of notice to the assigning Lender pursuant to Section
                                                                         -------
13.1(b)  (or  the  assigning Lender's receipt of a fully executed Assignment and
------
Acceptance,  in  the  case  of an assignment from a Lender to one or more of its
Related  Funds or Affiliates, as to which the assigning Lender has not delivered
an  Assignment and Acceptance to Agent or Borrower and in which case the payment
of  a  processing  fee  is  not  required), this Agreement shall be deemed to be
amended to the extent, but only to the extent, necessary to reflect the addition
of  the  Assignee  and  the  resulting  adjustment  of  the  Commitments arising
therefrom.  The  Commitment  allocated  to  each  Assignee  shall  reduce  such
Commitments of the assigning Lender pro tanto.

     (e)  Any Lender may at  any  time  sell  to one or more commercial banks,
financial  institutions,  or  other  Persons  (a  "Participant")  participating
                                                   -----------
interests  in  all  or  any  portion of its Obligations, its Commitment, and the
other  rights  and interests of that Lender (the "Originating Lender") hereunder
                                                  ------------------
and  under the other Loan Documents; provided, however, that (i) the Originating
                                     --------  -------
Lender  shall remain a "Lender" for all purposes of this Agreement and the other
Loan  Documents  and the Participant receiving the participating interest in the
Obligations,  the  Commitments,  and  the  other  rights  and  interests  of the
Originating  Lender hereunder shall not constitute a "Lender" hereunder or under
the  other  Loan  Documents  and the Originating Lender's obligations under this
Agreement  shall  remain  unchanged,  (ii)  the  Originating Lender shall remain
solely  responsible  for  the  performance  of such obligations, (iii) Borrower,
Agent,  and  the  Lenders  shall  continue  to deal solely and directly with the

<PAGE>

Originating  Lender  in  connection  with  the  Originating  Lender's rights and
obligations  under  this  Agreement and the other Loan Documents, (iv) no Lender
shall  transfer  or grant any participating interest under which the Participant
has the right to approve any amendment to, or any consent or waiver with respect
to,  this  Agreement  or  any  other  Loan  Document,  except to the extent such
amendment  to,  or  consent  or  waiver with respect to this Agreement or of any
other  Loan Document would (A) extend the final maturity date of the Obligations
hereunder  in  which  such Participant is participating, (B) reduce the interest
rate  applicable  to  the  Obligations  hereunder  in  which such Participant is
participating,  (C)  release  all  or  substantially  all  of  the Collateral or
guaranties (except to the extent expressly provided herein or in any of the Loan
Documents)  supporting  the  Obligations  hereunder in which such Participant is
participating,  (D)  postpone  the  payment  of,  or  reduce  the amount of, the
interest  or fees payable to such Participant through such Lender, or (E) change
the  amount  or  due  dates  of scheduled principal repayments or prepayments or
premiums,  and (v) all amounts payable by Borrower hereunder shall be determined
as  if  such  Lender  had  not  sold such participation, except that, if amounts
outstanding under this Agreement are due and unpaid, or shall have been declared
or shall have become due and payable upon the occurrence of an Event of Default,
each  Participant shall be deemed to have the right of set off in respect of its
participating  interest in amounts owing under this Agreement to the same extent
as  if  the  amount of its participating interest were owing directly to it as a
Lender  under  this  Agreement.  The  rights  of  any  Participant only shall be
derivative  through  the  Originating  Lender  with  whom  such  Participant
participates  and  no  Participant shall have any rights under this Agreement or
the  other  Loan  Documents or any direct rights as to the other Lenders, Agent,
Borrower,  the  Collections  of Borrower or its Subsidiaries, the Collateral, or
otherwise in respect of the Obligations.  No Participant shall have the right to
participate directly in the making of decisions by the Lenders among themselves.

     (f)  In  connection with any such assignment or participation or proposed
assignment  or  participation,  a  Lender  may,  provided  that  such  proposed
transferee  commit  in  writing  to  be  bound  by  Section  16.7,  disclose all
                                                    -------------
documents  and  information  which  it  now  or  hereafter  may have relating to
Borrower  and  its  Subsidiaries  and  their  respective  businesses.

     (g)  Any other provision in this Agreement notwithstanding, any Lender may
at  any time create a security interest in, or pledge, all or any portion of its
rights  under and interest in this Agreement in favor of (i) any Federal Reserve
Bank  in  accordance  with  Regulation  A  of  the  Federal Reserve Bank or U.S.
Treasury  Regulation  31 CFR Sec. 203.24 and (ii) any Person providing financing
or  other  credit  support to a Lender or any of its Affiliates or Related Funds
including  as  contemplated  by  Section  2.15, and such Federal Reserve Bank or
                                 -------------
other  Person  may  enforce  such  pledge  or  security  interest  in any manner
permitted under applicable law.

     (h)  Agent  (acting  solely  for this purpose as a non-fiduciary agent for
Borrower) shall maintain, or cause to be maintained, a register (the "Register")
                                                                      ---------
on  which it enters the name of a Lender as the registered owner of each Advance
held  by such Lender. Other than in connection with an assignment by a Lender of
all  or  any  portion of its Commitment or Obligations to a Related Fund of such
Lender  or  an  Affiliate  of  such  Lender that is not disclosed to Agent (i) a
Registered  Loan  (and  the Registered Note, if any, evidencing the same) may be
assigned  or sold in whole or in part only by registration of such assignment or
sale  on  the Register (and each Registered Note shall expressly so provide) and
(ii)  any  assignment  or  sale  of all or part of such Registered Loan (and the
Registered  Note,  if  any,  evidencing  the  same)  may  be  effected  only  by
registration  of  such  assignment  or  sale duly executed by the holder of such
Registered  Note,  whereupon,  at  the  request of the designated assignee(s) or
transferee(s),  one or more new Registered Notes in the same aggregate principal
amount  shall be issued to the designated assignee(s) or transferee(s). Prior to
the  registration  of  assignment  or  sale  of  any  Registered  Loan  (and the
Registered  Note,  if  any  evidencing  the same), each Borrower shall treat the
Person  in  whose  name  such  Registered Loan (and the Registered Note, if any,
evidencing  the  same)  is  registered  as  the owner thereof for the purpose of
receiving  all  payments  thereon  and  for  all other purposes, notwithstanding
notice  to the contrary. In the case of any assignment by a Lender of all or any
portion  of its Commitment to an Affiliate of such Lender or a Qualified Related
Fund  of  such Lender, as to which an Assignment and Acceptance is not delivered

<PAGE>

to  Agent and Borrower, the assigning Lender, (acting solely for this purpose as
a non-fiduciary agent for Borrower), shall maintain a register comparable to the
Register.

     (i)  In the event that a Lender sells participations in a Registered Loan,
such  Lender  shall  maintain  a  register  on  which  it enters the name of all
participants  in the Registered Loans held by it (the "Participant Register"). A
                                                       --------------------
Registered  Loan  (and  the Registered Note, if any, evidencing the same) may be
participated  in  whole or in part only by registration of such participation on
the  Participant Register (and each Registered Note shall expressly so provide).
Any  participation  of  such  Registered  Loan (and the Registered Note, if any,
evidencing  the  same)  may  be  effected  only  by  the  registration  of  such
participation on the Participant Register.

     13.2  SUCCESSORS. This Agreement shall bind and inure to the benefit of the
           ----------
respective  successors  and  assigns  of each of the parties; provided, however,
                                                              --------  -------
that  Borrower  may  not assign this Agreement or any rights or duties hereunder
without  the  Lenders' prior written consent and any prohibited assignment shall
be  absolutely  void  ab  initio.  No consent to assignment by the Lenders shall
release  Borrower  from  its Obligations. A Lender may assign this Agreement and
the  other  Loan  Documents  and  its rights and duties hereunder and thereunder
pursuant  to  Section  13.1 hereof and, except as expressly required pursuant to
              -------------
Section  13.1  hereof,  no  consent  or  approval  by  Borrower  is  required in
-------------
connection with any such assignment.

14.  AMENDMENTS;  WAIVERS.

     14.1  AMENDMENTS  AND  WAIVERS.  No  amendment  or  waiver of any provision
           ------------------------
of this Agreement or any other Loan Document, and no consent with respect to any
departure  by Borrower therefrom, shall be effective unless the same shall be in
writing  and  signed by the Required Lenders (or by Agent at the written request
of  the Required Lenders) and Borrower and then any such waiver or consent shall
be effective, but only in the specific instance and for the specific purpose for
which  given;  provided,  however,  that  no  such waiver, amendment, or consent
               --------   -------
shall,  unless  in  writing  and  signed by all of the Lenders directly affected
thereby  and  Borrower,  do  any  of  the  following:

          (a) increase or extend any Commitment of any Lender,

          (b)  postpone  or delay any date fixed by this Agreement or any other
     Loan  Document  for  any  payment  of  principal,  interest, fees, or other
     amounts due hereunder or under any other Loan Document,

          (c)  reduce the principal of, or the rate of interest on, any loan or
     other  extension  of  credit hereunder, or reduce any fees or other amounts
     payable hereunder or under any other Loan Document,

          (d)  change  the  Pro  Rata Share that is required to take any action
     hereunder,

          (e)  amend  or  modify this Section or any provision of the Agreement
     providing for consent or other action by all Lenders,

          (f) other than as permitted by Section 15.12, release Agent's Lien in
                                         -------------
     and to any of the Collateral,

          (g) change the definition of "Required Lenders" or "Pro Rata Share",

          (h) contractually subordinate any of the Agent's Liens,

          (i)  other than in connection with a merger, liquidation, dissolution
     or sale of such Person expressly permitted by the terms hereof or the other
     Loan  Documents,  release Borrower or any Guarantor from any obligation for
     the payment of money,

<PAGE>

          (j)  change  the  definition  of  Borrowing Base or the definition of
     Maximum Revolver Amount, or change Section 2.1(b), or
                                        -------------

          (k) amend any of the provisions of Section 15.
                                             -----------

and,  provided  further,  however,  that  no amendment, waiver or consent shall,
      -----------------   -------
unless  in  writing  and  signed  by Agent, affect the rights or duties of Agent
under this Agreement or any other Loan Document.  The foregoing notwithstanding,
any  amendment,  modification,  waiver,  consent, termination, or release of, or
with respect to, any provision of this Agreement or any other Loan Document that
relates  only to the relationship of the Lender Group among themselves, and that

does not affect the rights or obligations of Borrower, shall not require consent
by  or  the  agreement  of  Borrower.

14.2  REPLACEMENT  OF  HOLDOUT  LENDER.
      --------------------------------

     (a)  If  any  action  to  be  taken by the Lender Group or Agent hereunder
requires  the unanimous consent, authorization, or agreement of all Lenders, and
a  Lender  ("Holdout  Lender")  fails  to  give  its  consent, authorization, or
             ---------------
agreement, then Agent, upon at least 5 Business Days prior irrevocable notice to
the  Holdout Lender, may permanently replace the Holdout Lender with one or more
substitute  Lenders (each, a "Replacement Lender"), and the Holdout Lender shall
                              ------------------
have  no  right  to  refuse to be replaced hereunder. Such notice to replace the
Holdout  Lender shall specify an effective date for such replacement, which date
shall not be later than 15 Business Days after the date such notice is given.

     (b) Prior to the effective date of such replacement, the Holdout Lender and
each  Replacement Lender shall execute and deliver an Assignment and Acceptance,
subject  only  to  the  Holdout Lender being repaid its share of the outstanding
Obligations  without  any  premium  or  penalty  of  any kind whatsoever. If the
Holdout  Lender  shall refuse or fail to execute and deliver any such Assignment
and  Acceptance  prior  to  the  effective date of such replacement, the Holdout
Lender  shall  be  deemed  to  have  executed  and delivered such Assignment and
Acceptance.  The  replacement  of any Holdout Lender shall be made in accordance
with the terms of Section 13.1. Until such time as the Replacement Lenders shall
                  ------------
have  acquired all of the Obligations, the Commitments, and the other rights and
obligations  of the Holdout Lender hereunder and under the other Loan Documents,
the  Holdout Lender shall remain obligated to make the Holdout Lender's Pro Rata
Share of Advances.

     14.3  NO  WAIVERS;  CUMULATIVE  REMEDIES.  No  failure  by  Agent or any
           ----------------------------------
Lender  to  exercise  any  right,  remedy, or option under this Agreement or any
other  Loan  Document,  or  delay by Agent or any Lender in exercising the same,
will  operate  as  a  waiver  thereof.  No waiver by Agent or any Lender will be
effective  unless  it  is  in  writing, and then only to the extent specifically
stated.  No  waiver  by  Agent  or  any  Lender  on any occasion shall affect or
diminish  Agent's  and  each  Lender's  rights  thereafter  to  require  strict
performance  by  Borrower  of any provision of this Agreement.  Agent's and each
Lender's  rights  under  this  Agreement  and  the  other Loan Documents will be
cumulative  and  not  exclusive  of  any other right or remedy that Agent or any
Lender  may  have.

15.  AGENT;  THE  LENDER  GROUP.

     15.1  APPOINTMENT  AND  AUTHORIZATION  OF  AGENT.  Each  Lender  hereby
           ------------------------------------------
designates and appoints Diamond Creek as its representative under this Agreement
and the other Loan Documents and each Lender hereby irrevocably authorizes Agent
to  execute  and  deliver  each of the other Loan Documents on its behalf and to
take  such other action on its behalf under the provisions of this Agreement and
each  other Loan Document and to exercise such powers and perform such duties as
are  expressly  delegated  to  Agent by the terms of this Agreement or any other
Loan  Document,  together with such powers as are reasonably incidental thereto.
Agent  agrees to act as such on the express conditions contained in this Section
                                                                         -------
15.  The  provisions  of  this  Section  15  (other  than the proviso to Section
---                             -----------                              -------
15.11(a)) are solely for the benefit of Agent, and the Lenders, and Borrower and
-------
its Subsidiaries shall have no rights as a third party beneficiary of any of the

<PAGE>

provisions  contained herein.  Any provision to the contrary contained elsewhere
in this Agreement or in any other Loan Document notwithstanding, Agent shall not
have  any  duties  or responsibilities, except those expressly set forth herein,
nor  shall  Agent  have or be deemed to have any fiduciary relationship with any
Lender,  and  no  implied  covenants,  functions,  responsibilities,  duties,
obligations  or  liabilities shall be read into this Agreement or any other Loan
Document  or  otherwise  exist  against Agent; it being expressly understood and
agreed  that  the  use of the word "Agent" is for convenience only, that Diamond
Creek  is merely the representative of the Lenders, and only has the contractual
duties  set  forth  herein.  Except  as  expressly  otherwise  provided  in this
Agreement,  Agent  shall  have  and  may use its sole discretion with respect to
exercising  or  refraining from exercising any discretionary rights or taking or
refraining  from  taking any actions that Agent expressly is entitled to take or
assert  under  or  pursuant  to  this  Agreement  and  the other Loan Documents.
Without  limiting  the generality of the foregoing, or of any other provision of
the  Loan  Documents that provides rights or powers to Agent, Lenders agree that
Agent  shall  have  the  right  to exercise the following powers as long as this
Agreement  remains  in  effect:  (a)  maintain, in accordance with its customary
business  practices,  ledgers  and  records  reflecting  the  status  of  the
Obligations,  the  Collateral, the Collections of Borrower and its Subsidiaries,
and  related  matters,  (b)  execute  or  file  any and all financing or similar
statements  or  notices,  amendments,  renewals,  supplements,  documents,
instruments,  proofs of claim, notices and other written agreements with respect
to  the Loan Documents, (c) make Advances, for itself or on behalf of Lenders as
provided  in  the Loan Documents, (d) exclusively receive, apply, and distribute
the  Collections  of  Borrower  and  its  Subsidiaries  as  provided in the Loan
Documents,  (e)  open  and  maintain  such  bank  accounts  and  cash management
arrangements  as  Agent  deems  necessary and appropriate in accordance with the
Loan Documents for the foregoing purposes with respect to the Collateral and the
Collections of Borrower and its Subsidiaries, (f) perform, exercise, and enforce
any  and  all  other  rights  and  remedies  of the Lender Group with respect to
Borrower,  the  Obligations, the Collateral, the Collections of Borrower and its
Subsidiaries,  or  otherwise  related  to  any  of  same as provided in the Loan
Documents,  and  (g)  incur and pay such Lender Group Expenses as Agent may deem
necessary  or  appropriate  for the performance and fulfillment of its functions
and  powers  pursuant  to  the  Loan  Documents.

     15.2  DELEGATION  OF DUTIES. Agent may execute any of its duties under this
           ---------------------
Agreement  or  any  other  Loan  Document  by  or  through  agents, employees or
attorneys  in  fact  and  shall  be entitled to advice of counsel concerning all
matters  pertaining  to  such  duties.  Agent  shall  not be responsible for the
negligence  or  misconduct  of  any agent or attorney in fact that it selects as
long as such selection was made without gross negligence or willful misconduct.

     15.3  LIABILITY  OF  AGENT.  None of the Agent-Related Persons shall (a) be
           --------------------
liable  for  any  action taken or omitted to be taken by any of them under or in
connection  with  this  Agreement or any other Loan Document or the transactions
contemplated hereby (except for its own gross negligence or willful misconduct),
or  (b)  be  responsible  in  any  manner to any of the Lenders for any recital,
statement,  representation  or  warranty  made  by Borrower or any Subsidiary or
Affiliate  of  Borrower,  or  any officer or director thereof, contained in this
Agreement  or  in  any  other  Loan  Document,  or  in  any certificate, report,
statement or other document referred to or provided for in, or received by Agent
under  or  in connection with, this Agreement or any other Loan Document, or the
validity,  effectiveness,  genuineness,  enforceability  or  sufficiency of this
Agreement  or  any  other  Loan  Document, or for any failure of Borrower or any
other  party  to  any  Loan  Document  to  perform  its obligations hereunder or
thereunder.  No Agent-Related Person shall be under any obligation to any Lender
to  ascertain  or  to  inquire as to the observance or performance of any of the
agreements  contained  in,  or  conditions  of, this Agreement or any other Loan
Document,  or  to inspect the books and records or properties of Borrower or the
books or records or properties of any of Borrower's Subsidiaries or Affiliates.

     15.4 RELIANCE BY AGENT. Agent shall be entitled to rely, and shall be fully
          -----------------
protected  in  relying,  upon  any  writing,  resolution,  notice,  consent,
certificate,  affidavit,  letter,  telegram,  telefacsimile  or other electronic
method  of transmission, telex or telephone message, statement or other document
or  conversation  believed  by  it  to  be  genuine and correct and to have been
signed,  sent,  or  made  by  the  proper Person or Persons, and upon advice and
statements  of  legal  counsel  (including counsel to Borrower or counsel to any
Lender),  independent  accountants  and  other  experts selected by Agent. Agent

<PAGE>

shall  be  fully  justified in failing or refusing to take any action under this
Agreement  or  any  other  Loan  Document  unless Agent shall first receive such
advice  or  concurrence  of  the  Lenders as it deems appropriate and until such
instructions  are received, Agent shall act, or refrain from acting, as it deems
advisable. If Agent so requests, it shall first be indemnified to its reasonable
satisfaction  by  the Lenders against any and all liability and expense that may
be  incurred  by  it  by reason of taking or continuing to take any such action.
Agent  shall  in  all  cases be fully protected in acting, or in refraining from
acting,  under  this  Agreement  or any other Loan Document in accordance with a
request  or  consent  of  the  requisite Lenders and such request and any action
taken  or  failure  to  act  pursuant  thereto  shall be binding upon all of the
Lenders.

     15.5  NOTICE  OF  DEFAULT OR EVENT OF DEFAULT. Agent shall not be deemed to
           ---------------------------------------
have  knowledge  or notice of the occurrence of any Default or Event of Default,
except with respect to defaults in the payment of principal, interest, fees, and
expenses required to be paid to Agent for the account of the Lenders and, except
with  respect  to  Events of Default of which Agent has actual knowledge, unless
Agent  shall have received written notice from a Lender or Borrower referring to
this  Agreement,  describing  such Default or Event of Default, and stating that
such  notice is a "notice of default." Agent promptly will notify the Lenders of
its  receipt  of  any  such notice or of any Event of Default of which Agent has
actual  knowledge.  If  any  Lender  obtains  actual  knowledge  of any Event of
Default,  such  Lender promptly shall notify the other Lenders and Agent of such
Event of Default. Each Lender shall be solely responsible for giving any notices
to  its  Participants,  if  any.  Subject to Section 15.4, Agent shall take such
                                             ------------
action  with  respect to such Default or Event of Default as may be requested by
the  Required  Lenders  in  accordance  with  Section 8; provided, however, that
                                              ---------  --------  -------
unless  and  until Agent has received any such request, Agent may (but shall not
be  obligated  to)  take  such  action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable.

     15.6  CREDIT  DECISION.  Each  Lender  acknowledges  that  none  of  the
           ----------------
Agent-Related Persons has made any representation or warranty to it, and that no
act  by Agent hereinafter taken, including any review of the affairs of Borrower
and  its  Subsidiaries  or  Affiliates,  shall  be  deemed  to  constitute  any
representation  or  warranty  by  any  Agent-Related  Person to any Lender. Each
Lender  represents to Agent that it has, independently and without reliance upon
any  Agent-Related  Person and based on such documents and information as it has
deemed  appropriate,  made  its  own  appraisal  of  and  investigation into the
business,  prospects,  operations,  property,  financial and other condition and
creditworthiness  of Borrower and any other Person party to a Loan Document, and
all  applicable  bank  regulatory laws relating to the transactions contemplated
hereby,  and  made  its  own decision to enter into this Agreement and to extend
credit  to Borrower. Each Lender also represents that it will, independently and
without  reliance  upon any Agent-Related Person and based on such documents and
information  as  it shall deem appropriate at the time, continue to make its own
credit  analysis,  appraisals and decisions in taking or not taking action under
this  Agreement and the other Loan Documents, and to make such investigations as
it  deems  necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrower and any
other  Person  party  to a Loan Document. Except for notices, reports, and other
documents  expressly  herein  required  to be furnished to the Lenders by Agent,
Agent  shall  not have any duty or responsibility to provide any Lender with any
credit  or  other  information  concerning  the business, prospects, operations,
property,  financial and other condition or creditworthiness of Borrower and any
other  Person  party to a Loan Document that may come into the possession of any
of the Agent-Related Persons.

     15.7  COSTS  AND  EXPENSES; INDEMNIFICATION. Agent may incur and pay Lender
           -------------------------------------
Group Expenses to the extent Agent reasonably deems necessary or appropriate for
the  performance  and  fulfillment  of  its  functions,  powers, and obligations
pursuant  to  the  Loan  Documents,  including  court  costs, attorneys fees and
expenses, fees and expenses of financial accountants, advisors, consultants, and
appraisers,  costs of collection by outside collection agencies, auctioneer fees
and  expenses,  and  costs  of  security  guards  or  insurance premiums paid to
maintain the Collateral, whether or not Borrower is obligated to reimburse Agent
or  Lenders  for such expenses pursuant to this Agreement or otherwise. Agent is
authorized  and  directed  to  deduct  and  retain  sufficient  amounts from the

<PAGE>

Collections  of  Borrower  and  its  Subsidiaries received by Agent to reimburse
Agent for such out-of-pocket costs and expenses prior to the distribution of any
amounts  to  Lenders.  In  the  event Agent is not reimbursed for such costs and
expenses  by  Borrower or its Subsidiaries, each Lender hereby agrees that it is
and  shall  be  obligated  to pay to Agent such Lender's Pro Rata Share thereof.
Whether or not the transactions contemplated hereby are consummated, the Lenders
shall  indemnify  upon  demand  the  Agent-Related  Persons  (to  the extent not
reimbursed  by  or  on behalf of Borrower and without limiting the obligation of
Borrower to do so), according to their Pro Rata Shares, from and against any and
all  Indemnified  Liabilities; provided, however, that no Lender shall be liable
                               --------  -------
for  the  payment to any Agent-Related Person of any portion of such Indemnified
Liabilities  resulting  solely  from  such  Person's gross negligence or willful
misconduct  nor shall any Lender be liable for the obligations of any Defaulting
Lender  in  failing  to  make an Advance or other extension of credit hereunder.
Without  limitation  of  the  foregoing,  each Lender shall reimburse Agent upon
demand  for  such Lender's Pro Rata Share of any costs or out of pocket expenses
(including  attorneys, accountants, advisors, and consultants fees and expenses)
incurred  by  Agent  in  connection  with  the preparation, execution, delivery,
administration,  modification,  amendment,  or  enforcement  (whether  through
negotiations,  legal proceedings or otherwise) of, or legal advice in respect of
rights  or  responsibilities  under, this Agreement, any other Loan Document, or
any  document contemplated by or referred to herein, to the extent that Agent is
not reimbursed for such expenses by or on behalf of Borrower. The undertaking in
this  Section  shall  survive  the  payment of all Obligations hereunder and the
resignation or replacement of Agent.

     15.8  AGENT  IN  INDIVIDUAL  CAPACITY. Diamond Creek and its Affiliates may
           -------------------------------
make loans to, issue letters of credit for the account of, accept deposits from,
acquire equity interests in, and generally engage in any kind of banking, trust,
financial  advisory,  underwriting,  or  other  business  with  Borrower and its
Subsidiaries  and Affiliates and any other Person party to any Loan Documents as
though Diamond Creek were not Agent hereunder, and, in each case, without notice
to or consent of the other members of the Lender Group. The other members of the
Lender Group acknowledge that, pursuant to such activities, Diamond Creek or its
Affiliates  may receive information regarding Borrower or its Affiliates and any
other  Person  party  to  any  Loan Documents that is subject to confidentiality
obligations  in  favor  of  Borrower  or such other Person and that prohibit the
disclosure of such information to the Lenders, and the Lenders acknowledge that,
in  such  circumstances  (and in the absence of a waiver of such confidentiality
obligations, which waiver Agent will use its reasonable best efforts to obtain),
Agent shall not be under any obligation to provide such information to them. The
terms "Lender" and "Lenders" include Diamond Creek in its individual capacity.

     15.9  SUCCESSOR AGENT. Agent may resign as Agent upon 45 days notice to the
           ---------------
Lenders  (unless  such  notice is waived by the Lenders). If Agent resigns under
this  Agreement,  the  Required  Lenders shall, with the consent of the Borrower
(provided that such consent shall not be required (i) if an Event of Default has
occurred  and  is  continuing  or (ii) if such successor Agent is a Lender or an
Affiliate  or  Related  Fund  of  any  Lender) appoint a successor Agent for the
Lenders.  If  no successor Agent is appointed prior to the effective date of the
resignation  of Agent, Agent may appoint, with Borrower's consent (provided that
such  consent  shall not be required (i) if an Event of Default has occurred and
is  continuing  or  (ii)  if such successor Agent is a Lender or an Affiliate or
Related  Fund  of  any  Lender),  after consulting with the Lenders, a successor
Agent.  If  Agent  has  materially  breached  or  failed to perform any material
provision of this Agreement or of applicable law, the Required Lenders may agree
in  writing  to  remove  and replace Agent with a successor Agent from among the
Lenders.  In any such event, upon the acceptance of its appointment as successor
Agent  hereunder,  such successor Agent shall succeed to all the rights, powers,
and  duties of the retiring Agent and the term "Agent" shall mean such successor
Agent and the retiring Agent's appointment, powers, and duties as Agent shall be
terminated.  After  any  retiring  Agent's  resignation  hereunder as Agent, the
provisions of this Section 15 shall inure to its benefit as to any actions taken
                   ----------
or  omitted  to  be  taken  by it while it was Agent under this Agreement. If no
successor  Agent  has accepted appointment as Agent by the date which is 45 days
following  a  retiring  Agent's  notice  of  resignation,  the  retiring Agent's
resignation  shall nevertheless thereupon become effective and the Lenders shall
perform  all  of  the  duties of Agent hereunder until such time, if any, as the
Lenders,  with the consent of the Borrower (provided that such consent shall not
be required (i) if an Event of Default has occurred and is continuing or (ii) if
such successor Agent is a Lender or an Affiliate or Related Fund of any Lender),
appoint a successor Agent as provided for above.

<PAGE>

     15.10  LENDER  IN  INDIVIDUAL  CAPACITY.  Any  Lender  and  its  respective
            --------------------------------
Affiliates may make loans to, issue letters of credit for the account of, accept
deposits  from,  acquire equity interests in and generally engage in any kind of
banking,  trust,  financial  advisory,  underwriting,  or  other  business  with
Borrower  and  its Subsidiaries and Affiliates and any other Person party to any
Loan  Documents as though such Lender were not a Lender hereunder without notice
to or consent of the other members of the Lender Group. The other members of the
Lender  Group acknowledge that, pursuant to such activities, such Lender and its
respective  Affiliates  may  receive  information  regarding  Borrower  or  its
Affiliates  and  any other Person party to any Loan Documents that is subject to
confidentiality  obligations  in favor of Borrower or such other Person and that
prohibit  the  disclosure  of  such  information to the Lenders, and the Lenders
acknowledge  that, in such circumstances (and in the absence of a waiver of such
confidentiality  obligations,  which  waiver such Lender will use its reasonable
best  efforts  to  obtain),  such  Lender  shall  not be under any obligation to
provide such information to them.

     15.11  WITHHOLDING  TAXES.
            ------------------

     (a) All payments made by Borrower hereunder or under any note or other Loan
Document  will  be  made  without  setoff,  counterclaim,  or  other defense. In
addition,  all  such  payments  will  be  made  free  and  clear of, and without
deduction  or withholding for, any present or future Taxes, and in the event any
deduction  or  withholding  of Taxes is required, Borrower shall comply with the
penultimate  sentence  of  this Section 15.11(a). "Taxes" shall mean, any taxes,
                                ---------------
levies,  imposts,  duties, fees, assessments or other charges of whatever nature
now  or hereafter imposed by any jurisdiction or by any political subdivision or
taxing  authority  thereof  or  therein with respect to such payments other than
Excluded  Taxes  and all interest, penalties or similar liabilities with respect
thereto.  If any Taxes are so levied or imposed, Borrower agrees to pay the full
amount  of  such  Taxes  and such additional amounts as may be necessary so that
every  payment  of  all  amounts  due  under  this  Agreement, any note, or Loan
Document,  including  any  amount  paid  pursuant to this Section 15.11(a) after
                                                          ----------------
withholding  or  deduction for or on account of any Taxes, will not be less than
the  amount  provided  for herein; provided, however, that Borrower shall not be
required  to  increase  any  such amounts if the increase in such amount payable
results from Agent's or such Lender's own willful misconduct or gross negligence
(as  finally  determined  by  a  court of competent jurisdiction). Borrower will
furnish  to  Agent as promptly as possible after the date the payment of any Tax
is  due  pursuant  to applicable law certified copies of tax receipts evidencing
such payment by Borrower.

     (b)  If  a  Lender  claims an exemption from United States withholding tax,
Lender  agrees  with  and  in  favor of Agent and Borrower, to deliver to Agent:

          (i) if such Lender claims an exemption from United States withholding
     tax  pursuant  to  its portfolio interest exception, (A) a statement of the
     Lender,  signed  under penalty of perjury, that it is not a (I) a "bank" as
     described  in  Section  881(c)(3)(A)  of the IRC, (II) a 10% shareholder of
     Borrower  (within the meaning of Section 871(h)(3)(B) of the IRC), or (III)
     a  controlled foreign corporation related to Borrower within the meaning of
     Section 864(d)(4) of the IRC, and (B) a properly completed and executed IRS
     Form W-8BEN, before receiving its first payment under this Agreement and at
     any other time reasonably requested by Agent or Borrower;

          (ii)  if  such  Lender  claims  an  exemption from, or a reduction of,
     withholding  tax  under  a United States tax treaty, properly completed and
     executed  IRS  Form  W-8BEN  before  receiving its first payment under this
     Agreement and at any other time reasonably requested by Agent or Borrower;

          (iii)  if such Lender claims that interest paid under this Agreementis
     exempt  from  United  States  withholding  tax  because  it  is effectively
     connected  with  a  United  States  trade  or  business of such Lender, two
     properly  completed and executed copies of IRS Form W-8ECI before receiving
     its  first  payment  under  this Agreement and at any other time reasonably
     requested  by  Agent  or  Borrower;  or;

<PAGE>

          (iv)  such  other  form  or  forms,  including IRS Form W-9, as may be
     required under the IRC or other laws of the United States as a condition to
     exemption  from,  or  reduction  of,  United  States  withholding or backup
     withholding tax before receiving its first payment under this Agreement and
     at  any other time reasonably requested by Agent or Borrower. Lender agrees
     promptly  to notify Agent and Borrower of any change in circumstances which
     would modify or render invalid any claimed exemption or reduction.

     (c) If a Lender claims an exemption from withholding tax in a jurisdiction
other  than  the  United  States,  Lender  agrees with and in favor of Agent and
Borrower,  to  deliver to Agent any such form or forms, as may be required under
the laws of such jurisdiction as a condition to exemption from, or reduction of,
foreign withholding or backup withholding tax before receiving its first payment
under  this  Agreement  and  at  any other time reasonably requested by Agent or
Borrower.

Lender  agrees  promptly  to  notify  Agent  and  Borrower  of  any  change  in
circumstances  which  would  modify  or  render invalid any claimed exemption or
reduction.

     (d)  If any Lender claims exemption from, or reduction of, withholding tax
and  such  Lender  sells,  assigns,  grants  a  participation  in,  or otherwise
transfers all or part of the Obligations of Borrower to such Lender, such Lender
agrees  to  notify Agent and Borrower of the percentage amount in which it is no
longer  the  beneficial  owner of Obligations of Borrower to such Lender. To the
extent  of  such  percentage amount, Agent and Borrower will treat such Lender's
documentation  provided  pursuant  to Sections 15.11(b) or 15.11(c) as no longer
                                      -----------------    --------
valid.  With  respect  to  such  percentage  amount,  Lender  may  provide  new
documentation, pursuant to Sections 15.11 (b) or 15.11(c), if applicable.
                           ------------------    --------

     (e) If any Lender is entitled to a reduction in the applicable withholding
tax,  Agent  may  withhold  from  any  interest payment to such Lender an amount
equivalent  to  the  applicable  withholding  tax after taking into account such
reduction. If the forms or other documentation required by subsection (b) or (c)
                                                           --------------    ---
of  this  Section 15.11 are not delivered to Agent, then Agent may withhold from
          -------------
any  interest  payment  to  such  Lender  not  providing  such  forms  or  other
documentation an amount equivalent to the applicable withholding tax.

     (f) If the IRS or any other Governmental Authority of the United States or
other jurisdiction asserts a claim that Agent did not properly withhold tax from
amounts paid to or for the account of any Lender due to a failure on the part of
the  Lender  (because  the  appropriate form was not delivered, was not properly
executed,  or  because  such  Lender  failed  to  notify  Agent  of  a change in
circumstances  which  rendered  the exemption from, or reduction of, withholding
tax  ineffective,  or for any other reason) such Lender shall indemnify and hold
Agent harmless for all amounts paid, directly or indirectly, by Agent, as tax or
otherwise,  including penalties and interest, and including any taxes imposed by
any  jurisdiction  on  the  amounts  payable  to Agent under this Section 15.11,
                                                                  -------------
together  with  all  costs and expenses (including attorneys fees and expenses).
The obligation of the Lenders under this subsection shall survive the payment of
all Obligations and the resignation or replacement of Agent.

     (g) If  Agent  or  a Lender determines, in its sole discretion, that it has
received  a  refund  of  any  Taxes  or  Other  Taxes  as  to  which it has been
indemnified  by  the  Borrower  or  with  respect  to  which  Borrower  has paid
additional  amounts  pursuant  to  this  Section 15.11, so long as no Default or
                                         -------------
Event  of  Default has occurred and is continuing, it shall pay over such refund
to  the Borrower (but only to the extent of payments made, or additional amounts
paid,  by  the  Borrower under this Section 15.11 with respect to Taxes or Other
                                    -------------
Taxes  giving  rise  to  such  a  refund),  net  of all reasonable out-of-pocket
expenses  of  Agent or Lender and without interest (other than any interest paid
by the relevant Governmental Authority with respect to such a refund); provided,
                                                                       --------
that the Borrower, upon the request of Agent or such Lender, agrees to repay the
----
amount paid over to the Borrower (plus any penalties, interest or other charges,

<PAGE>

imposed  by  the  relevant  Governmental  Authority,  other than such penalties,
interest or other charges imposed as a result of the willful misconduct or gross
negligence  of  the  Agent  or  such Lender hereunder) to Agent or Lender in the
event  Agent  or  Lender  is  required to repay such refund to such Governmental
Authority.  Except as expressly provided for in this Section 15.11, this Section
                                                     -------------
shall  not be construed to require Agent or any Lender to make available its tax
returns  (or  any  other  information  relating  to  its  taxes  which  it deems
confidential)  to  the  Borrower  or  any  other  person.

     15.12  COLLATERAL  MATTERS.
            -------------------

     (a)  The  Lenders hereby irrevocably authorize Agent, at  its  option  and
in  its  sole  discretion,  to  release  any Lien on any Collateral (i) upon the
termination  of the Commitments and payment and satisfaction in full by Borrower
of  all  Obligations  (other  than  unasserted  contingent  indemnification
Obligations),  (ii) constituting property being sold or disposed of if a release
is  required  or  desirable in connection therewith and if Borrower certifies to
Agent  that  the  sale  or  disposition  is  permitted under Section 6.4 of this
                                                             -----------
Agreement  or  the  other Loan Documents (and Agent may rely conclusively on any
such certificate, without further inquiry), (iii) constituting property in which
Borrower  or its Subsidiaries owned no interest at the time the Agent's Lien was
granted  nor  at  any  time  thereafter, or (iv) constituting property leased to
Borrower  or its Subsidiaries under a lease that has expired or is terminated in
a  transaction  permitted under this Agreement.  Except as provided above, Agent
will not execute and deliver a release of any Lien on any Collateral without the
prior written authorization of (y) if the release is of all or substantially all
of  the  Collateral, all of the Lenders, or (z) otherwise, the Required Lenders.
Upon  request  by  Agent  or  Borrower  at any time, the Lenders will confirm in
writing Agent's authority to release any such Liens on particular types or items
of  Collateral pursuant to this Section 15.12; provided, however, that (1) Agent
                                -------------  --------  -------
shall not be required to execute any document necessary to evidence such release
on terms that, in Agent's opinion, would expose Agent to liability or create any
obligation or entail any consequence other than the release of such Lien without
recourse,  representation,  or  warranty,  and (2) such release shall not in any
manner  discharge,  affect,  or  impair the Obligations or any Liens (other than
those  expressly being released) upon (or obligations of Borrower in respect of)
all  interests retained by Borrower, including, the proceeds of any sale, all of
which  shall  continue  to  constitute  part  of  the  Collateral.

     (b)  Agent  shall have  no  obligation  whatsoever to any of the Lenders to
assure  that  the  Collateral  exists  or  is owned by Borrower or is cared for,
protected,  or  insured  or  has been encumbered, or that the Agent's Liens have
been  properly  or  sufficiently  or  lawfully created, perfected, protected, or
enforced or are entitled to any particular priority, or to exercise at all or in
any  particular  manner or under any duty of care, disclosure or fidelity, or to
continue  exercising,  any  of  the  rights,  authorities  and powers granted or
available  to  Agent  pursuant to any of the Loan Documents, it being understood
and  agreed  that  in  respect of the Collateral, or any act, omission, or event
related thereto, subject to the terms and conditions contained herein, Agent may
act  in any manner it may deem appropriate, in its sole discretion given Agent's
own  interest  in  the Collateral in its capacity as one of the Lenders and that
Agent  shall  have no other duty or liability whatsoever to any Lender as to any
of  the  foregoing,  except  as  otherwise  provided  herein.

     15.13  RESTRICTIONS  ON  ACTIONS  BY  LENDERS;  SHARING  OF  PAYMENTS.
            --------------------------------------------------------------

     (a)  Each  of the Lenders agrees that it shall not, without the express
written  consent  of  Agent,  and  that  it  shall, to the extent it is lawfully
entitled  to  do  so,  upon  the  written  request of Agent, set off against the
Obligations,  any  amounts  owing  by  such  Lender  to  Borrower or any deposit
accounts  of Borrower now or hereafter maintained with such Lender.  Each of the
Lenders further agrees that it shall not, unless specifically requested to do so
in  writing  by  Agent,  take  or  cause  to be taken any action, including, the
commencement of any legal or equitable proceedings, to foreclose any Lien on, or
otherwise  enforce  any  security  interest  in,  any  of  the  Collateral.

     (b)  If,  at  any  time  or times  any Lender shall receive (i) by payment,
foreclosure,  setoff,  or  otherwise, any proceeds of Collateral or any payments
with  respect  to  the  Obligations,  except  for  any such proceeds or payments
received  by  such Lender from Agent pursuant to the terms of this Agreement, or

<PAGE>

(ii)  payments  from Agent in excess of such Lender's Pro Rata Share of all such
distributions  by  Agent,  such  Lender promptly shall (A) turn the same over to
Agent,  in  kind, and with such endorsements as may be required to negotiate the
same to Agent, or in immediately available funds, as applicable, for the account
of  all of the Lenders and for application to the Obligations in accordance with
the  applicable  provisions of this Agreement, or (B) purchase, without recourse
or  warranty, an undivided interest and participation in the Obligations owed to
the  other Lenders so that such excess payment received shall be applied ratably
as  among  the  Lenders  in  accordance  with  their  Pro Rata Shares; provided,
                                                                       --------
however,  that to the extent that such excess payment received by the purchasing
party  is  thereafter recovered from it, those purchases of participations shall
be  rescinded  in whole or in part, as applicable, and the applicable portion of
the purchase price paid therefor shall be returned to such purchasing party, but
without  interest except to the extent that such purchasing party is required to
pay  interest  in  connection  with  the  recovery  of  the  excess  payment.

     15.14  AGENCY  FOR  PERFECTION.  Agent  hereby  appoints  each other Lender
            -----------------------
as  its  agent (and each Lender hereby accepts such appointment) for the purpose
of perfecting the Agent's Liens in assets which, in accordance with Article 8 or
Article  9,  as  applicable,  of the Code can be perfected only by possession or
control.  Should any Lender obtain possession or control of any such Collateral,
such  Lender  shall  notify  Agent  thereof,  and, promptly upon Agent's request
therefor  shall  deliver possession or control of such Collateral to Agent or in
accordance  with  Agent's  instructions.

     15.15 PAYMENTS BY AGENT TO THE LENDERS. All payments to be made by Agent to
           --------------------------------
the  Lenders  shall be made by bank wire transfer of immediately available funds
pursuant  to  such  wire  transfer  instructions as each party may designate for
itself  by  written  notice to Agent. Concurrently with each such payment, Agent
shall  identify  whether  such  payment  (or  any  portion  thereof)  represents
principal, premium, fees, or interest of the Obligations.

     15.16  CONCERNING THE COLLATERAL AND RELATED LOAN DOCUMENTS. Each member of
          -----------------------------------------------------
the  Lender  Group authorizes and directs Agent to enter into this Agreement and
the  other  Loan  Documents.  Each  member  of  the Lender Group agrees that any
action  taken  by  Agent  in  accordance with the terms of this Agreement or the
other Loan Documents relating to the Collateral and the exercise by Agent of its
powers  set  forth  therein  or herein, together with such other powers that are
reasonably  incidental  thereto,  shall  be  binding  upon  all  of the Lenders.

     15.17 FIELD AUDITS AND EXAMINATION REPORTS; CONFIDENTIALITY; DISCLAIMERS BY
           ---------------------------------------------------------------------
LENDERS;  OTHER  REPORTS AND INFORMATION. By becoming a party to this Agreement,
----------------------------------------
each Lender:

     (a)  is  deemed  to  have  requested  that  Agent  furnish such Lender,
promptly  after  it becomes available, a copy of each field audit or examination
report  (each  a  "Report"  and  collectively,  "Reports") prepared by or at the
                   ------                        -------
request  of  Agent,  and  Agent  shall so furnish each Lender with such Reports,

     (b)  expressly  agrees and  acknowledges  that  Agent does not (i) make any
representation  or warranty as to the accuracy of any Report, and (ii) shall not
be  liable  for  any  information  contained  in  any  Report,

     (c)  expressly  agrees  and  acknowledges  that  the  Reports  are  not
comprehensive  audits  or examinations, that Agent or other party performing any
audit  or  examination will inspect only specific information regarding Borrower
and  will  rely  significantly  upon  Borrower's and its Subsidiaries' books and
records, as well as on representations of Borrower's personnel,

     (d)  agrees to keep all Reports and other material, non-public information
regarding  Borrower  and  its  Subsidiaries  and  their  operations, assets, and
existing  and contemplated business plans in a confidential manner in accordance
with Section 16.7, and
     -------------

     (e) without limiting the generality of any other indemnification provision
contained  in  this  Agreement,  agrees:  (i) to hold Agent and any other Lender
preparing  a Report harmless from any action the indemnifying Lender may take or

<PAGE>

fail  to  take  or any conclusion the indemnifying Lender may reach or draw from
any  Report in connection with any loans or other credit accommodations that the
indemnifying  Lender  has  made  or  may  make  to Borrower, or the indemnifying
Lender's  participation  in, or the indemnifying Lender's purchase of, a loan or
loans  of  Borrower, and (ii) to pay and protect, and indemnify, defend and hold
Agent,  and  any such other Lender preparing a Report harmless from and against,
the  claims,  actions,  proceedings, damages, costs, expenses, and other amounts
(including,  attorneys  fees  and  costs)  incurred  by Agent and any such other
Lender  preparing a Report as the direct or indirect result of any third parties
who  might  obtain all or part of any Report through the indemnifying Lender. In
addition to the foregoing: (x) any Lender may from time to time request of Agent
in  writing  that  Agent provide to such Lender a copy of any report or document
provided  by  Borrower  to Agent that has not been contemporaneously provided by
Borrower to such Lender, and, upon receipt of such request, Agent promptly shall
provide a copy of same to such Lender, (y) to the extent that Agent is entitled,
under  any  provision  of  the  Loan Documents, to request additional reports or
information from Borrower, any Lender may, from time to time, reasonably request
Agent  to  exercise  such  right  as specified in such Lender's notice to Agent,
whereupon  Agent  promptly  shall  request of Borrower the additional reports or
information  reasonably specified by such Lender, and, upon receipt thereof from
Borrower,  Agent  promptly  shall provide a copy of same to such Lender, and (z)
any  time that Agent renders to Borrower a statement regarding the Loan Account,
Agent shall send a copy of such statement to each Lender.

     15.18  SEVERAL  OBLIGATIONS; NO LIABILITY. Notwithstanding that certain of
             ---------------------------------
the Loan Documents now or hereafter may have been or will be executed only by or
in  favor  of  Agent  in  its  capacity  as  such, and not by or in favor of the
Lenders,  any  and  all  obligations  on  the part of Agent (if any) to make any
credit  available  hereunder  shall  constitute  the  several  (and  not  joint)
obligations  of  the  respective  Lenders on a ratable basis, according to their
respective  Commitments,  to  make  an  amount  of such credit not to exceed, in
principal  amount,  at  any one time outstanding, the amount of their respective
Commitments.  Nothing contained herein shall confer upon any Lender any interest
in,  or subject any Lender to any liability for, or in respect of, the business,
assets,  profits, losses, or liabilities of any other Lender.  Each Lender shall
be  solely responsible for notifying its Participants of any matters relating to
the  Loan Documents to the extent any such notice may be required, and no Lender
shall  have  any  obligation, duty, or liability to any Participant of any other
Lender.  Except as provided in Section 15.7, no member of the Lender Group shall
                               ------------
have  any  liability  for  the acts of any other member of the Lender Group.  No
Lender  shall  be responsible to Borrower or any other Person for any failure by
any  other Lender to fulfill its obligations to make credit available hereunder,
nor to advance for it or on its behalf in connection with its Commitment, nor to
take  any  other  action  on  its  behalf  hereunder  or  in connection with the
financing  contemplated  herein.

16.  GENERAL  PROVISIONS.

     16.1  EFFECTIVENESS.  This  Agreement  shall  be  binding  and  deemed
           -------------
effective  when  executed by Borrower, Agent, and each Lender whose signature is
provided  for  on  the  signature  pages  hereof.

     16.2  SECTION HEADINGS.  Headings and numbers have been set forth herein
           ----------------
for  convenience  only.  Unless  the  contrary  is  compelled  by  the  context,
everything  contained  in each Section applies equally to this entire Agreement.

     16.3  INTERPRETATION.  Neither  this  Agreement  nor  any  uncertainty  or
           --------------
ambiguity  herein  shall  be  construed  against  the  Lender Group or Borrower,
whether  under  any  rule  of  construction  or otherwise. On the contrary, this
Agreement  has  been  reviewed  by  all  parties  and  shall  be  construed  and
interpreted  according  to  the  ordinary  meaning  of  the  words used so as to
accomplish fairly the purposes and intentions of all parties hereto.

<PAGE>

     16.4  SEVERABILITY OF PROVISIONS. Each provision of this Agreement shall be
           --------------------------
severable  from  every  other  provision  of  this  Agreement for the purpose of
determining the legal enforceability of any specific provision.

     16.5  COUNTERPARTS; ELECTRONIC EXECUTION. This Agreement may be executed in
           ----------------------------------
any  number  of  counterparts and by different parties on separate counterparts,
each  of  which, when executed and delivered, shall be deemed to be an original,
and  all  of  which,  when taken together, shall constitute but one and the same
Agreement.  Delivery  of  an  executed  counterpart  of  this  Agreement  by
telefacsimile  or  other  electronic  method of transmission shall be equally as
effective as delivery of an original executed counterpart of this Agreement. Any
party  delivering  an executed counterpart of this Agreement by telefacsimile or
other  electronic method of transmission also shall deliver an original executed
counterpart  of  this  Agreement but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of
this  Agreement.  The  foregoing shall apply to each other Loan Document mutatis
mutandis.

     16.6 REVIVAL AND REINSTATEMENT OF OBLIGATIONS. If the incurrence or payment
          ----------------------------------------
of  the Obligations by Borrower or Guarantor or the transfer to the Lender Group
of  any  property  should  for any reason subsequently be declared to be void or
voidable under any state or federal law relating to creditors' rights, including
provisions  of  the  Bankruptcy  Code  relating  to  fraudulent  conveyances,
preferences,  or other voidable or recoverable payments of money or transfers of
property  (each,  a "Voidable Transfer"), and if the Lender Group is required to
                     -----------------
repay  or restore, in whole or in part, any such Voidable Transfer, or elects to
do  so  upon the reasonable advice of its counsel, then, as to any such Voidable
Transfer,  or  the amount thereof that the Lender Group is required or elects to
repay  or  restore, and as to all reasonable costs, expenses, and attorneys fees
of  the  Lender  Group  related  thereto, the liability of Borrower or Guarantor
automatically  shall  be  revived,  reinstated,  and restored and shall exist as
though such Voidable Transfer had never been made.

     16.7 CONFIDENTIALITY.
          ---------------

     (a)  Agent and  Lenders  each  individually (and not jointly or jointly and
severally)  agree  that  material, non-public information regarding Borrower and
its  Subsidiaries,  their  operations,  assets,  and  existing  and contemplated
business  plans  shall  be  treated  by  Agent and the Lenders in a confidential
manner,  and  shall not be disclosed by Agent and the Lenders to Persons who are
not parties to this Agreement, except:  (i) to attorneys for and other advisors,
accountants,  auditors,  and consultants to any member of the Lender Group, (ii)
to  Subsidiaries and Affiliates of any member of the Lender Group, provided that
any  such  Subsidiary or Affiliate shall have agreed to receive such information
hereunder subject to the terms of this Section 16.7, (iii) as may be required by
                                       ------------
statute,  decision,  or  judicial  or administrative order, rule, or regulation,
(iv)  as  may  be agreed to in advance in writing by Borrower or as requested or
required  by  any Governmental Authority pursuant to any subpoena or other legal
process,  (v)  as to any such information that is or becomes generally available
to  the  public (other than as a result of prohibited disclosure by Agent or the
Lenders),  (vi)  in  connection with any assignment, participation  or pledge of
any  Lender's  interest  under  this Agreement, provided that any such assignee,
participant, or pledgee shall have agreed in writing to receive such information
hereunder subject to the terms of this Section, and (vii) in connection with any
litigation  or  other  adversary  proceeding involving parties hereto which such
litigation  or  adversary  proceeding  involves  claims related to the rights or
duties  of  such  parties under this Agreement or the other Loan Documents.  The
provisions  of  this Section 16.7(a) shall survive for 2 years after the payment
                     ---------------
in  full  of  the  Obligations  and  the  termination  of  this  Agreement.

     (b)  Anything in this Agreement to the contrary notwithstanding, Agent may
provide  information  concerning  the terms and conditions of this Agreement and
the other Loan Documents to loan syndication and pricing reporting services.

<PAGE>

     16.8  INTEGRATION.  This  Agreement,  together  with  the  other  Loan
           -----------
Documents,  reflects the entire understanding of the parties with respect to the
transactions  contemplated  hereby and shall not be contradicted or qualified by
any  other  agreement,  oral  or  written,  before  the  date  hereof.

     16.9  PUBLIC  DISCLOSURE  .  Borrower  agrees that neither it nor any of
           ------------------
its Affiliates will issue any press release or other public disclosure using the
name  of Agent, any Lender or any of their respective Affiliates or referring to
this  Agreement  or any other Loan Document without the prior written consent of
Agent  or such Lender, as applicable, except to the extent that Borrower or such
Affiliate is required to do so under applicable law (in which event, Borrower or
such  Affiliate  will  consult  with Agent or such Lender, as applicable, before
issuing  such  press  release  or  other  public  disclosure).  Borrower  hereby
authorizes Agent and each Lender, after consultation with Borrower, to advertise
the  closing  of  the  transactions  contemplated by this Agreement, and to make
appropriate  announcements  of the financial arrangements entered into among the
parties  hereto,  as  Agent  or  such  Lender shall deem appropriate, including,
without  limitation,  announcements  commonly known as tombstones, in such trade
publications,  business  journals, newspapers of general circulation and to such
selected  parties  as  Agent  or  such  Lender  shall  deem  appropriate.

                          [Signature pages to follow.]

<PAGE>

     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
executed and delivered as of the date first above written.

                                GRILL CONCEPTS, INC.,
                                a Delaware Corporation

                                By:
                                   -----------------------------------------
                                Name:
                                     ---------------------------------------
                                Title:
                                      --------------------------------------

                                BERNARD NATIONAL SENIOR FUNDING, LTD.,
                                as a Lender

                                By:
                                   -----------------------------------------
                                Name:
                                     ---------------------------------------
                                Title:
                                      --------------------------------------

                                DIAMOND CREEK INVESTMENT PARTNERS, LLC,
                                a Delaware limited liability company,  as Agent

                                By:
                                   -----------------------------------------
                                Name:
                                     ---------------------------------------
                                Title:
                                      --------------------------------------

<PAGE>Exhibit 10.2

                           dated as of March 10, 2006

CONFIDENTIAL

Diamond Creek Investment Partners, as Agent
under the below-referenced Credit Agreement
24 Corporate Plaza
Newport Beach, California  92660

          Re:   FEE LETTER
                ----------

Ladies and Gentlemen:

     Reference hereby is made to that certain Credit Agreement, dated as of even
date  herewith  (the "Credit Agreement"), by and among the lenders identified on
                      ----------------
the  signature  pages  thereof  (such  lenders,  together  with their respective
successors  and permitted assigns, are referred to hereinafter each individually
as  a  "Lender"  and  collectively  as  the "Lenders"), DIAMOND CREEK INVESTMENT
                                             -------
PARTNERS,  LLC,  a  Delaware limited liability company ("Diamond Creek"), as the
                                                         -------------
arranger  and administrative agent for the Lenders (together with its successors
and  assigns  in  such  capacity, "Agent"), and GRILL CONCEPTS, INC., a Delaware
                                   -----
corporation  (the  "Borrower".)  Capitalized  terms  used  herein shall have the
                    --------
meanings  set  forth in the Credit Agreement unless specifically defined herein.

     In  connection  with the Credit Agreement, Borrower hereby agrees to pay to
Agent  the following fees, which fees shall be for its sole and separate account
and  not  the  account  of  any  Lender:

     1.  Closing  Fee.  A  closing  fee  of $120,000, which fee shall be due and
         ------------
payable  on  the  Closing  Date.

     2.  Loan  Servicing Fee. A monthly servicing fee of $3,000, which fee shall
         -------------------
be  due and payable, in arrears, on the first day of each month, commencing with
the  first  day of the month immediately following the Closing Date, through the
Termination  Date, provided, however, that (a) the servicing fee that is due, in
                   --------  -------
arrears,  on  the  first day of the month immediately following the Closing Date
shall be an amount equal to (i) $3,000 times (ii) the result of the total number
of  days  in the prior month that elapsed from and including the Closing Date up
to  and including the last day of such month divided by the total number of days
in  such  month,  and  (b)  the  servicing  fee  that is due, in arrears, on the
Termination Date shall be an amount equal to (i) $3,000 times (ii) the result of
the  total  number  of  days  in  the  month  that  elapsed to and including the
Termination  Date  divided  by  the  total  number  of  days  in  the  month  of
termination.

     3. Unused Line Fee. On the first day of each month prior to the Termination
        ---------------
Date,  an unused line fee in an amount equal to 0.50% per annum times the result
of  (i)  the  Maximum  Revolver  Amount,  less (ii) the average Daily Balance of
Advances  that  were  outstanding  during  the  immediately  preceding  month.

<PAGE>

     4.  Audit,  Appraisal,  and  Valuation  Charges.  Field examination, audit,
         -------------------------------------------
appraisal,  and  valuation  fees  and charges as follows (i) a fee of $1,250 per
day,  per  auditor/examiner, plus out-of-pocket expenses for each examination or
financial  audit  of  Borrower performed by personnel employed by Agent and (ii)
the actual charges paid or incurred by Agent if it elects to employ the services
of  one  or  more third Persons to perform financial audits of Borrower or their
Subsidiaries,  to  appraise the Collateral, or any portion thereof, or to assess
Borrower'  or their Subsidiaries' business valuation; provided, however, that so
                                                      --------  -------
long  as  no  Event  of  Default shall have occurred and be continuing, Borrower
shall  not  be  obligated  to  reimburse  Agent for more than $5,000 in fees and
charges in connection with field examinations, audits, appraisals, or valuations
during  any  calendar  year.

     5.  Prepayment  Premium.  If  Borrower  has  sent  a  notice of termination
         -------------------
pursuant  to  the provisions of Section 3.6 of the Credit Agreement, then on the
                                -----------
date  set  forth  as  the  date  of  termination of the Credit Agreement in such
notice, Borrower shall pay to Agent, in cash, the Applicable Prepayment Premium.
In  the  event  of  the termination of the Credit Agreement and repayment of the
Obligations  at  any  time  prior  to  the  Maturity Date, for any other reason,
including (a) termination upon the election of the Required Lenders to terminate
after  the  occurrence  and  during the continuation of an Event of Default, (b)
foreclosure and sale of Collateral, (c) sale of the Collateral in any Insolvency
Proceeding, or (d) restructure, reorganization, or compromise of the Obligations
by the confirmation of a plan of reorganization or any other plan of compromise,
restructure,  or  arrangement in any Insolvency Proceeding, then, in view of the
impracticability  and  extreme  difficulty  of ascertaining the actual amount of
damages  to  the Lender Group or profits lost by the Lender Group as a result of
such  early  termination,  and  by  mutual  agreement  of  the  parties  as to a
reasonable  estimation  and  calculation  of  the lost profits or damages of the
Lender  Group, Borrower shall pay to Agent on such date of termination, in cash,
the  Applicable Prepayment Premium, measured as of the date of such termination.
For  purposes  of this section, "Applicable Prepayment Premium" means, as of any
                                 -----------------------------
date  of  determination, an amount equal to (a) during the period from and after
the Closing Date through and including the date that is the first anniversary of
the  Closing  Date,  3% times the Maximum Revolver Amount, (b) during the period
after  the  date  that  is the first anniversary of the Closing Date through and
including  the date that is the second anniversary of the Closing Date, 1% times
the  Maximum  Revolver  Amount,  and  (c)  thereafter,  $0. The foregoing to the
contrary notwithstanding, if (i) Diamond Creek, together with its Affiliates and
Related  Funds,  shall  cease to constitute the Required Lenders or (ii) Diamond
Creek  shall cease to be the Agent, then the Applicable Prepayment Premium shall
be  $0.

     Borrower  shall  pay  all amounts due and payable hereunder to Agent in the
manner  set  forth in the Credit Agreement. Agent hereby is expressly authorized
by  Borrower  to  (i) charge such amounts due and owing to the Loan Account, and
(ii)  designate  such  amounts  as  an  Advance  under  the  Credit  Agreement.

     Borrower  hereby acknowledges and agrees that each fee payable hereunder is
fully  earned  and  non-refundable  on  the  date such fee is due and payable as
provided above and that each such fee constitutes Obligations and is in addition
to  any  other  fees payable by Borrower under the Credit Agreement or any other
Loan  Document.

     This  letter  agreement  is  the  Fee  Letter  referred  to  in  the Credit
Agreement, shall be construed under and governed by the laws of the State of New
York, and may be executed in any number of counterparts and by different parties
on  separate  counterparts.  Each  of such counterparts shall be deemed to be an
original, and all of such counterparts, taken together, shall constitute but one
and  the  same  agreement. Delivery of an executed counterpart of this letter by
telefacsimile  or  other  electronic  method  of  transmission  shall be equally
effective  as  delivery  of  a  manually  executed  counterpart.

                            [signature page follows]

<PAGE>

     The  contents  of  this  letter  are confidential. This letter shall not be
disclosed  or  displayed or its contents otherwise disclosed to any third Person
without  the  prior  written  consent  of  Agent,  except  as  required  by law.

                                     Very  truly  yours,

                                     GRILL  CONCEPTS,  INC.,
                                     a  Delaware  corporation

                                     By:
                                        -----------------------------
                                     Name:
                                     Title:

Accepted  and  agreed  to
as  of  the  date  first  above  written:

DIAMOND  CREEK  INVESTMENT  PARTNERS,  LLC,
as  Agent

By:
  ------------------------
Name:
Title:

<PAGE>

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